Jill Sherman, Whitehall Editor
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VAT should be lifted from the cost of repairing televisions, vacuum cleaners and fridges to discourage people from throwing them away as soon as they stop working, the Government will be told today.
The House of Lords Science Committee argues that with electronic appliances getting cheaper and labour more expensive, most householders are not prepared to pay the high costs of repairing goods. As a result, more and more appliances are being dumped into landfill and replaced by the latest design on the market.
“Waste could be reduced if consumers were encouraged to retain products for longer and repair them when necessary. Changes to the value-added tax regime may be required,” the peers say.
Repairing a vacuum cleaner costs at least £50, roughly the same price as a new model. Repairs for televisions, computers and cameras are often more than £100 and fewer people now take out warranties to guard against breakdown. Calling in a plumber or electrician to mend a fridge or washing machine can be even more costly.
The report suggests that VAT should also be reduced or removed from the servicing of goods.
The Lords committee admits that it may not be in manufacturers' interests to build longer-lasting goods, and suggest that the manufacturers be given an incentive to make sustainable goods. The committee argues that variable VAT should be introduced so that goods that use sustainable materials would attract lower rates of VAT or none at all.
The Government also comes under attack for neglecting business waste in its efforts to boost recycling. The peers claim that landfill targets and penalties are aimed at councils, which only create 9 per cent of Britain's waste. Of the remainder, 32 per cent comes from demolition and construction, 30 per cent from mining and quarrying, 13 per cent from industry and 11 per cent from the commercial sector.
Lord O'Neill of Clackmannan, who chaired the Lords Science Sub-Committee on Waste Reduction, said that there had been an impressive increase in recycling of domestic waste in the past few years, but this only represented a tiny fraction of all waste generated in Britain. “It is time for the Government to remove its priorities from household waste to the far greater problem of industrial and commercial waste,” Lord O'Neill said. “We would also like to see the VAT regime reformed so that products that have a long life cycle and can be easily and cheaply repaired are made economically more attractive,” he added.
The waste reduction report says that the campaign to boost recycling among householders had meant that moves to reduce waste had been overlooked, with many consumers unaware of the impact of the goods they were buying. It also criticises the Government's decision to cut the budgets of agencies such as the Waste Resource Allocation Programme, created to encourage more sustainable business practices.
Joan Ruddock, the minister responsible for waste, said it was wrong to suggest that the Government had focused disproportionately on domestic waste. “The landfill tax escalator specifically targets business and commerce as high waste producers. We have a big programme of engagement with business and have invested over £650m in the last three years to establish best practice and help organisations and the public adopt less wasteful behaviour,” she said.
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This government's green rhetoric is as substantial as their as their chance of winning the next election. The whole premise is geared around levering as much tax from as many people as possible while justifying it with the ultimate in guilt complexes. Yes, things need to change. But not like this
Paul, London,
Absolutely agree - reduce VAT on repairs. We often forget REPAIRING when we think of REDUCE, RESUE and RECYCLE. Recycling should only be the last option after reusing and repairing.
Bill, Cockermouth, UK
All fine words. Except that nothing is made to be repaired any more. You can't get spare parts for most things and the cost of skilled labour makes repair of most domestic appliances uneconomic. Of course you could wind the clock back 50 years, start manufacturing things here instead of China etc
David, Sheffield, UK
The cost of labour in the UK is already a big enough disincentive to employ people to do anything, without the VAT component. However, a government like Labour, which seems intent on bleeding taxpayers dry, is hardly going to repeal any taxation, but rather dream up new ways to increase hardship
Ben Garside, Loughborough, UK
Most, if not all, domestic appliances have a finite working life built in through the compnents used. These might be bearings, switches or electronic compnents and the majority meet their expected span. No sensible individual is going to repair knowing the likelyhood of total failure.
mike gee, bournemouth, uk
Why would anyone call a plumber to mend a fridge or a washing machine? Surely you call an appliance engineer. I am a repairer, and very efficient too. Ain't going to fix your plumbing though. Typical half-thought thinking in the article, I'm afraid, The right people do the job right.
C, Chantrell, Yeadon, Yorkshire
Repairing domestic appliances is my job and the main problem in keeping the repair costs viable is the greatly inflated prices the manufacturers themselves charge for many spare parts. They clearly wish to discourage repair.
peter deaville, burton-on-trent,
I don't want to buy something cheap to repair. I want to buy something that will outlast the ridiculously short warranties. You know, like in the old days, before built in use-by dates.
Udo, Melbourne, Australia
A classic case of 'the blind leading the blind'.
The min-wage has virtually priced us out of the manufacturing and repair markets, and will continue to do so until a max-wage is applied, especially in the parasite occupations. i.e.
government and non-productive organisations.
I have a solution !
Arthur Marson, Huddersfield, West Yorkshire
It's also about requiring manufacturers to stock/supply spare parts. I've thrown away easily repairable appliances because 'parts not available mate'. Manufacturers should have to guarantee parts will be available for 10 yrs from date of sale (and major components - pumps etc - a life of 5 yrs)
Clifford, Reading,
I've repaired many of the laptops I have owned (backlights, invertors), as the official repair scheme cost a minimum of 200 pounds. The hard part is knowing is finding where to buy the spare parts. Sometimes the cost of international delivery is more than the cost of the component itself.
Michael, Edinburgh,
Have any of their Lordships tried to find a repair shop recently.
Simon Marshland, Bath, UK
Hooray! Let's make the tax system even more complicated! Let's load even more paperwork on businesses and taxpayers! Who could possibly object?
Rowan, Hereford,
Absolutely agree - reduce VAT on repairs. We often forget REPAIRING when we think of REDUCE, RESUE and RECYCLE. Recycling should only be the last option after reusing and repairing.
Bill, Cockermouth, UK
Removing a tax - not sure Mr Brown will be able to comprehend.
A truly 'green' idea
Mike, Sole Street, England
Oh come on! Do you really think stopping the VAT will goad people into repair when the cost is equivelent to a replacement?
A better idea would be to force the councils to collect these products for free instead of charging for the right to recycle.
Paul Ritchie, Southampton,
If the government really cares, then it would curtail it's own foolish ways, especially jetting around the world for various meetings frequently,and also taking numerous hangers on - they would do video conferencing - it would save on CO2 emissions, and the cost to the tax paying British public
Chris, Coventry,
But the Govt. has been considering offering £1000 to scrap an old car and buy a new one - exactly the opposite principle. The best way to reduce the pollution from China is to stop buying new stuff. It's much greener to mend something than replace it - that includes cars.
Ian S., Nottingham, Nottinghamshire
Why not rate each new product with a carbon / green rating so consumers can see how much harm is done during production? Same for a repair. Then consumers can make an informed choice.
Manufacturers could offer refurbishment facilities for old models to offset any drop in sales.
Everybody wins.
Dave W, London, UK
I know Ive commented before but one thing strikes me and that is this.
The current administration, and its puppet 2nd house, has shifted the burdon of responsibility from the manufactures to the consumers.
Once the Government decided what could be sold. (by regulaion: see cars) Why not now?
Phil Austin, RAUNDS, Albion