Study finds Reach beneficial

20 September 2004 00:01  [Source: ICB]

The initial findings of a study by Germany’s Fraunhofer Institute looking at the economic impact of Reach indicate that the legislation would be beneficial for innovation and competitiveness and contribute to health and environmental protection. The study, which was commissioned by Germany’s Environmental Protection Agency, looks at the impact on just two sectors, varnishes and cleaning products. Its aim is to highlight how Reach will impact on these product chains. So far, the report concludes that as far as these sectors are concerned producers would be able to adapt if certain substances were withdrawn.

Separately, MEPs and Commission representatives, along with the Green/EFA Group in the European Parliament, have slammed the latest study published by consultancy Arthur D Little on Reach. One MEP said: ‘This study should win a Guinness World Record for the biggest industrial scaremongering ever attempted.’

The study, commissioned by the Parliament’s Research DG, predicts that implementation of Reach would lead to a 2.9% loss in GDP and a 24.7% loss in production. German member of the Parliament’s industry committee Rebecca Harms said: ‘I am glad to see that the industry committee was united from left to right in dismissing the latest study on the new chemicals policy.’

Arthur D Little was criticised for basing its study on a static model, which did not reflect the chemical industry’s ability to innovate, a criticism levelled at a previous study on Reach completed by the company.

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