Brussels, 05/11/2001 (Agence Europe) - In a press release published last week, the Commission found that the Dutch waste disposal system for car wrecks does not contain elements of state aid. Last February, the Commission initiated the investigation procedure as it was concerned that the contributions paid for the dismantling of car parts to be recycled would overcompensate for the costs but new evidence showed that this was not the case. Furthermore, the Commission concluded that there are no state resources involved.
The Dutch car wreck disposal system is based on a voluntary agreements among companies which was then declared binding by the Dutch government. For the 2001-2003 period, the agreement sets a levy of EUR 45 per car being registered in the Netherlands, to be paid into a fund by car producers and importers, according to the 'polluter pays principle'. The proceeds are used to cover the cost of dismantling and recycling car wrecks. The system is managed by a private limited liability company, Auto Recycling Nederland B.V. (ARN). The Commission concluded that there are no State resources involved because car producers and importers can obtain an exemption if they take care of 'their' car wrecks in a way that is at least as good as it is done within the ARN-system. The Dutch authorities impose an obligation to obtain a result, rather than an obligation to contribute to the ARN-system. Therefore in the Commission's view the levy has a voluntary, or at least an optional character. Consequently the proceeds do not constitute state resources.
The Commission comments that even if the proceeds constituted State resources, there would be no state aid because the system does not favour certain undertakings. For the purpose of establishing the lowest premiums possible for packaging, collecting and recycling dismantled materials, ARN has used tender procedures open to any interested company, including foreign companies. The Commission found no evidence that the contributions surpass the minimum that is necessary for ensuring the recycling. Therefore it concludes that the contributions do not contain a state aid element. The Commission also concluded that the system does not contain a state aid element in favour of car manufacturers and importers. Since they pay the waste disposal charge, they bear a significant part, if not all, the costs, in line with the EU Directive on end-of life vehicles. Part of the annual proceeds of the charge is used for professionalisation of the sector and serve the interests of the system rather than the interests of individual participating companies. The funds are not used for the development of new technologies, but for testing the potential use of existing technologies for recycling car wrecks. Therefore the Commission concluded that these expenses do not constitute state aid either.