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Analysis

What WEEE can do for you

Posted on 29 Jul 2005 at 15:37

What it means

In theory, the implementation of the directive won't impinge upon those who hold the corporate purse strings. The producer-responsibility concept means the supplier is accountable for picking up and disposing of old IT products. However, the whole process has to be paid for and it's likely the added expenditure on the part of the retailer or distributor will be funded by a higher upfront cost. PC prices, for example, will increase slightly to pay for the recycling fees required at the end of the product's life.

The supplier that sells IT equipment to your company is, by default, responsible for collecting, recycling or reusing the systems it replaces. If you buy 100 new systems from a supplier then WEEE allows for you to return 100 old systems - like for like - no matter when you bought them or where you bought them from.

Specialists in the field believe many firms aren't aware they're allowed to 'give back' old IT equipment that may have been sitting in a store room for five years.

'If the customer wants to do that, it's absolutely legitimate,' said Claire Snow, director of the Industry Council for Electronic Equipment Recycling.

'The subject of "like for like" is being worked out on a pragmatic basis. In theory, it's got to be like for like in terms of function, so it's possible you'll be able to give someone three machines back for the one you've bought in the case of [multifunction devices] that print, scan and photocopy.'

One source told us such a policy would be an added incentive for companies that have considered upgrading to Voice over IP, but currently face the headache of how to dispose of their bulky PBX equipment.

And, from August 2005, all electrical and electronic equipment put on the market in the EU has to be labelled to highlight the fact it can no longer be sent to a landfill site. That will give users an extra reminder of their new responsibilities.

However, many people won't deal directly with their supplier, as a lot of manufacturers are joining compliance schemes whereby a third party assumes the role of a collection and recycling agency. 'The idea of a compliance scheme is that it's an umbrella organisation which provides a service to producers,' said a spokesperson for the DTI. 'The compliance scheme would take on the responsibilities that a producer would otherwise have, such as registering and ensuring that appropriate records are kept.'

It's the easy option, and certainly the sensible one for business buyers who want to get rid of very old equipment.

DIY WEEE

However, the more astute companies may choose to bear the burden themselves. The constant release of new, higher-specification PCs devalues the systems on your company's desktop almost immediately, but there's still value in systems that are two or three years behind the bleeding edge. So why not sever your ties with the supplier and get some money back on your investment?

'At the point of sale, you should agree who's responsible for taking the product back at the end of its life,' said Kevin Riches, managing director of Technical Asset Management (TAM), a Hertfordshire-based company that specialises in the remarketing and disposal of redundant IT equipment. 'Resellers are going to be smart and try to take the responsibility, because it ties the customer in. Don't be fooled when the supplier says they'll do it for you. If you let that happen, you're giving them the money they'll make on the resale.'

The market for refurbished computers is growing and, while charities and schools in third-world countries are often publicised as the biggest potential beneficiaries, specialists in the field claim there's enough demand from paying customers in the UK to create a lucrative business. 'Start-up businesses are a key area,' said Peter Paduh, managing director of redundant equipment reseller Maxitech. 'They might not want the top-of-the-range PC, but they still want to buy a reliable product.'

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