New eco-tax 'could put firm out of business'

The majority of employees of a plastic packaging company were ordered out on forced leave yesterday after the management felt that the newly announced eco-taxes would simply make the company unsustainable.

In a legal notice published on Friday, the government announced that eco-taxes would be levied on a new list of products, though the biggest retail impact is set to be the new tax on plastic bags.

Traplas Ltd director Robert Abela calculates that the price of carrier bags will increase from 3m to 6c and a pack of 10 big garbage bags will shoot up from 27c to a staggering Lm3.90.

"This is crazy. After 24 years we are being driven out of business because nobody has bothered to consult us before introducing this draconian measure," he fumed.

The Corradino-based company, with an investment of Lm2.5 million, produces plastic packaging for both retail and industry purposes, from garbage bags to compost bags.

Mr Abela lashed out at the authorities, accusing them of only bothering to consult the importers and of being seemingly oblivious to the fact that a major local plastic production firm existed.

The introduction of eco-taxes on plastic products was envisaged but the company had no idea that the tax would make business "untenable". "We just thought it would be in proportion to other taxes levied on other products. We have to be given time to readjust," Mr Abela protested. This, he added, was what was done in other countries where reasonable taxes were phased in over a period of time.

In Ireland, a 9p fee is latched on to every plastic carrier bag, a measure introduced only in 2002, nearly 30 years after EU accession. In Belgium, an 18c tax per kilo is imposed on plastic items, Mr Abela said. In Malta, the new eco-tax on "bags for the conveyance of goods and plastics" is of Lm10.67 per kilo and Lm5 for degradable products.

The management of Traplas Ltd held an urgent meeting with the Federation of Industry yesterday to try and find a way out of the impasse.

Mr Abela said the company's workers have been asked to utilise their vacation leave until a suitable reply is given by the government or Wasteserv, failing which it plans to shut down.

When contacted, a spokesman for the Environment Ministry confirmed that the management of Traplas Ltd had presented a case which claimed that it could not remain competitive. It was decided that the case would be submitted to the eco-contribution commission.