28 August 2006 00:00 [Source: ICB]
The European Commission's draft budget for the European Chemicals Agency has indicated that the cost of Reach to business looks set to be higher than originally estimated.
In some cases, the costs are now four or five times higher than those first mooted back in October 2003, according to the British Chemical Distributors and Traders Association (BCDTA).
The increases relate to the fees that registrants will have to pay according on the tonnage band that the production of chemical falls into.
There are a small number of reductions that will benefit small to medium-sized enterprises (SMEs) that are part of consortia.
According to a Commission document it is estimated that, in addition to a subsidy of €15.4m in 2007, the net requirement for the Chemicals Agency in Helsinki, Finland, for the years 2008 and 2009 will be about €80m.
The budget includes the developing of a computerised database, staff recruitment and training.
The Commission notes that the Agency in Helsinki incurs higher costs as there are 'no synergies with existing institutions'.
'Though the Commission is at pains to point out that the draft budget is only one hypothesis and is therefore provisional, the order of magnitude of the numbers involved will be of major concern to SMEs,' said Melvyn Whyte, chairman of the BCDTA Reach Task Force.
'The increase is indefensible and makes a nonsense of the pious noises made by politicians and Commission officials about preserving the competitiveness of one of Europe's most successful industries,' Whyte added.
|Full base feeConsortium participants|
|Tonnage category||New budget||Old budget||Increase, €||Increase %||New budget||Old budget||Increase, €||Increase %|
|1 to 10||1200||400||800||200||804||400||404||101|
|>10 to 100||3257||400||2857||714||2182||400||1782||446|
|>100 to 1000||8842||8000||842||11||5924||8000||-2076||-26|
|SMEsSMEs in consortium|
|Tonnage category||New budget||Old budget||Increase, €||Increase, %||New budget||Old budget||Increase, €||Increase %|
|1 to 10||900||400||500||125||504||400||104||26|
|>10 to 100||2443||400||2043||511||1368||400||968||242|
|>100 to 1000||6631||8000||-1369||-17||3714||8000||-4286||-54|
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