strategic objectives · 2018-06-20 · martin rakuscek jotun australia tim welsh ppg industries...
TRANSCRIPT
Suite 604, Level 6, 51 Rawson Street, Epping NSW 2121 P: +61 2 9876 1411 F: +61 2 9876 1433 W: www.apmf.asn.au
DATE: Thursday 28th June 2018
TIME: Midday - 12.30 pm Lunch
12.30 – 2.00 pm Meeting
VENUE: Stamford Plaza Sydney Airport Hotel O’Riordan St & Robey St Mascot NSW 2020
CORPORATE
Item 1 Competition Law Checklist 12.30 pm
Item 2 2.1 Welcome, Delegations and Apologies
2.2 Resignation of Axalta from Council 12.35 pm
Item 3 Minutes of Previous Meeting – 22nd February 2018 12.40 pm
Item 4 Business Arising from Minutes 12.45 pm
Item 5 Chief Executive Officer's Report 12.50 pm
STRATEGIC OBJECTIVES
Item 6
Strategic Plan 2016 – 2020 – Mid Cycle Review
Advocacy
Communications
Sustainability
Governance
1.20 pm
Item 7 Approved APMF Work Plan 2018 1.30 pm
OTHER
Item 8 Budget 2018/2019 1.35 pm
Item 9 Appointment of new Auditors for 2018/2019 1.40 pm
Item 10
Dates and Venues for 2018 Meetings
Council Meeting
Wednesday 21 November 2018 - Melbourne
Annual General Meeting
Wednesday 21 November 2018 - Melbourne
1.45 pm
Distribution - Council Members
NAME COMPANY
Darin Kirkwood Akzo Nobel
Michael Paag Concept Paints
Richard Yuan DIC Australia
Pat Jones DuluxGroup
Rodney Walton Haymes Paint
Martin Rakuscek Jotun Australia
Tim Welsh PPG Industries
Richard Meagher Valspar (Australia) Corporation
Rebecca Lee Covestro
John Blight Dow
COMPETITION LAW CHECKLIST FOR APMF COUNCIL MEETINGS This checklist is to assist Australian Paint Manufacturers' Federation Councillors in the proper conduct of its meetings.
The checklist is not exhaustive, but rather a common-sense guide or consistent attention to competition law.
Councillors are reminded that each of us have obligations under the Competition and Consumer Act. There will be no
discussion in this meeting or following from any discussions here today about price or any other matters likely to
affect competition. Please take care to observe this direction.
DO DON’T
PREPARING FOR A MEETING
Meetings of members convened by the APMF Chairperson will generally be the subject of Notice and an Agenda.
The Chairperson will ensure that competition matters concerning price and market conditions are kept off the Agenda or, if they are to be discussed, legal advice will first be obtained.
AT THE MEETING
Minutes of each meeting will be taken and meeting discussions will be kept to Agenda topics.
Remember attending a meeting where price or other sensitive competition matters are discussed may be enough to put directors at risk. Avoid sub‐committees and which could separately form the basis of arrangements on price or other competition sensitive matters.
WHAT CAN BE DISCUSSED
APMF Councillors, can discuss any matter on an Agenda or in general business which is consistent with APMF's objects, provided that such discussions do not expose members/Councillors and APMF to risk of breach of the Competition and Consumer Act.
RAISE ANY CONCERNS YOU HAVE
Protest at any discussion or meeting activities which appear to violate this checklist; ask for those activities to be stopped so that appropriate legal check can be made by counsel; disassociate yourself from any such discussion or activities and leave any meeting in which they continue.
AFTER THE MEETING
Minutes are to be agreed upon as accurate by all members at the meeting prior to their confirmation.
WHAT CANNOT BE DISCUSSED
Price fixing arrangements; such arrangements are illegal even if they are not followed.
No discussions on price are to take place at a meeting, including:
i fixing, controlling or maintaining the price at which products or services are supplied or purchased by any members;
ii price to the market of any goods or services;
iii price formulas or margins, or whether or not a price is too high or too low;
iv levels of discounts, allowances, rebates, trading terms and credit terms;
v price levels or price trends in the market;
vi production costs and production levels; and
vii the cost of inputs and raw materials.
Consistent with APMF's objects there is scope for Councillors to discuss general economic trends and changes in broader market conditions. However, such discussions should never be so specific as to be capable of forming the basis of an anti‐competitive arrangement or understanding. If there are concerns in this regard legal advice can be obtained.
All Councillors must also avoid discussions at meetings about:
i dividing and allocating markets among competitors;
ii ceasing to compete for the business of certain customers;
iii not dealing with certain customers and suppliers;
iv not tendering for certain projects or tendering only on agreed conditions; and
v membership entitlement and expulsion to pursue an anti-competitive objective (eg, exclusion from membership to an applicant known to discount products).
Prices (and discounts, etc) need to be set independently by individual companies and without reference to actual and potential competitors.
Suite 604, Level 6, 51 Rawson Street, Epping NSW 2121 P: +61 2 9876 1411 F: +61 2 9876 1433 W: www.apmf.asn.au
MINUTES OF THE COUNCIL MEETING
HELD ON 22 FEBRUARY 2018,
PARKROYAL MELBOURNE AIRPORT HOTEL
ATTENDEES
Richard Phillips APMF Secretary
Greg Foster Akzo Nobel
Steven Brett Axalta Coating Systems
Michael Paag Concept Paints
George Karas DuluxGroup
Rodney Walton Haymes Paint
Martin Rakuscek Jotun
Tim Welsh PPG Industries
Joe Rodgers-Falk Valspar (Australia) Corporation
APOLOGIES
Darin Kirkwood Akzo Nobel
Richard Yuan DIC
Pat Jones DuluxGroup
Richard Meagher Valspar
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CORPORATE
ITEM 1 COMPETITION LAW CHECKLIST
Prior to commencing the meeting, the Chief Executive Officer reminded all Councillors of their obligations under the Competition and consumer Act 2010 and to not discuss any matters that may affect competition.
ITEM 2 WELCOME, DELEGATIONS AND APOLOGIES
The meeting was chaired by Mr. Tim Welsh.
Mr. Joe Rodgers Falk represented Mr. Richard Meagher of Valspar
Mr. George Karas represented Mr. Pat Jones of Dulux
Mr. Greg Foster represented Mr Darin Kirkwood of Akzo Nobel
Mr. Richard Yuan tendered his apology
ITEM 3 MINUTES OF PREVIOUS MEETING – 17 NOVEMBER 2016
Minutes of the Council Meeting held on 22 November 2018 were signed as a correct record.
ITEM 4 BUSINESS ARISING
4.1
Zero VOC Claims Update
Since the last Council Meeting the APMF has responded to a range of questions from the ACCC in December 2017 and January 2018, to further assist the ACCC better understand our areas of concern regarding E-Colour’s marketing claims. The ACCC was contacted on 20 February and it reported that they have no further updates at this time. One further company had recently made a “Zero VOC claim” and the APMF would be forwarding its letter of concern to the relevant company in the near future.
4.2
Biocides
With a range of biocides under increased regulatory scrutiny internationally (MIT, CLT and BCM), IPPIC is developing a proposal for co-ordinated industry action on “preservation stewardship” designed to support national and regional efforts seeking use constraints on critical antimicrobials/biocides.
The APMF HSEL Committee is co-ordinating APMF input into the IPPIC proposal.
ITEM 5 CHIEF EXECUTIVE OFFICER'S REPORT
5.1 Financial Statements
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The financial statements to the end of December 2017 were considered. Council
noted the following:
Income from other sources indicates a positive variation of $6,154.
Following the decision to make the PA position redundant in September 2017, the December salaries variation is $7,083.30 under budget.
Overall Office Expenses are within $3,436 of budget (negative variation of 4.8%).
Legal Expenses connected to the Zero VOC Claims project indicates an over spend of $10,495 against budget.
Overall, the budget indicates a bottom line profit at the half way point of $6,310,
against the target budget loss of $8,888 (an overall positive variation of $15,198).
The new reduced APMF cost base will assist the APMF to fund increased industry
marketing activities in the next annual work plan and to reduce membership fees.
5.2
The Australian Chamber of Commerce and Industry
In addition to the report, the CEO advised Council that the membership of the ACCI allows the APMF to obtain greater leverage in key macro-economic policy areas.
The ACCI identifies its top three issues as:
1. Company Tax Rates: Competitive business tax rates compared to other countries
2. Energy: Soaring costs plus reliability issues that may force businesses to close and jobs will be lost
3. Future of Work: Creating future workplaces and environments that are flexible, encourage innovation and that cater for multigenerational employees.The ACCI will hold a Conference Series on this topic in May which the APMF will promote to member companies.
The two other areas of relevance to the APMF is the Sustainability Group, which links in to our objective to be a sustainable industry; and participating in the ACCI Reference group that will review the model WHS laws in 2018.
5.3
APMF Technology Report
In December 2017, the APMF submitted itself to a third party IT audit which highlighted current areas of strengths and weaknesses.
To address the areas of weakness, actions have implemented to address the key areas of firewall, disaster recovery and PC software updates.
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STRATEGIC OBJECTIVES
ITEM 6 ADVOCACY REPORT
6.1
TIO₂
Council noted the report, including the APMF CEO letter to the Austrade CEO and requested that the CEO prepare a high level industry brief on the proposed TIO₂ classification as carcinogen Category 2, which is then to be circulated to the key company MDs/CEOs for further input.
On 20 February 2018,the APMF also met with Martin Squire, General Manager, Trade and International Branch, Department of Industry and Science, to discuss Technical Barriers to Trade (TBT) with the EU, as well as the potential issues connected with the proposed TIO₂ classification.
6.2 Biocides
Council noted the report.
6.3
Reform of NICNAS
Council noted the report. Council requested that the CEO to contact the Minister’s Office for a further update.
6.4
Reform of APVMA
Anti-Fouling Standard:
In addition to the report in the agenda, the HSEL Committee had agreed that the APMF now arrange a face to face meeting with the APVMA to discuss next steps.
6.5 Strong Industry Alliances
Council noted the report.
ITEM 7 COMMUNICATIONS
7.1 Further to the report, IPPIC plans to hold best practice workshop as part of its face to face meeting to include: Industry Association marketing, role of communications and member recruitment.
7.2 Website Council noted the report.
7.3 Member Communications Council noted the report.
ITEM 8 PAINTBACK REPORT
8.1 Two new permanent sites were opened in late 2017 in Toowoomba and Port Phillip, with new permanent sites due to commence operations in Mackay,
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Wetherill Park (NSW), Cambellfield, Wetherill Park, Sunbury and Ballarat (Vic). By the end of 2017, Paintback’s permanent collection network stood at around 80 sites.
Paintback and the NSW EPA are now seeking to reach an agreement for closer cooperation with major focus on the existing EPA permanent sites. The EPA have also indicated that they would now like to support Paintback collection events and are looking to work more closely with Paintback to manage the dissemination of information around each other’s sites.
As well as operating from these permanent site collections, Paintback continues regular ‘pop-up’ events in partnership with its key stakeholders including state government agencies and retailers (Bunnings and Mitre 10). Valuable data is being collected at these events including customer postcode, waste channel information (DIY/Trade) and tonnages collected.
A stand-out mobile collection event occurred in Norwood (SA Government) late last year, with 800 vehicles attending this event and 20.2 tonnes of waste paint plus packaging was collected. A four-week Queensland state-wide marketing campaign was also conducted in November/December 2017.
Other recent advertising and promotion activities have focussed on all new permanent sites, pop up events and advertising spreads in MPA magazines, the Australian Local Government Handbook and the Waste Management Magazine. Paintback maintains a strong social media profile to grow the brand and published an Annual 2016/17 Review.
The Paintback website traffic continues to rise, noting October to November traffic consisting 81,949 unique visits, 97.4 % of those being first time visitors. Council noted the report. Average monthly collections now exceeds the 500,000 kilograms mark. R&D activities is now a key priority area for Paintback.
8.2 Australian Standards
Council noted the report.
8.3
HSEL Meeting Update
Council noted that the Committee has agreed to publish a Circular around the recent fatality at DIC Australia. The Committee also identified the need to update the APMF Guide to Manual Handling in the next business cycle.
ITEM 9 GOVERNANCE
Council resolved to appoint Rebecca Lee (Covestro) and John Blight (Dow) to be appointed as Councillors for a two year term.
ITEM 10 WORK PLAN TRACKING REPORT FOR 2017-2018
Noted
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ITEM 11 PROPOSED 2018 – 2019 WORK PLAN.
For 2018-19, 10 action areas across the four APMF pillars (Advocacy, Communications, Sustainability and Governance) were proposed, including a mid-cycle review of the APMF Strategic Plan 2016 – 2020.
PILLARS WORK AREA COMMENTS
A Anti-Fouling Standard Obtain APVMA approval for Draft Standard.
A NICNAS Reforms Support new legislation
A Defend the use of important chemicals. Key topics are: TiO₂, Biocides, and Nanoparticles
In partnership with global partners IPPIC and CEPE
A
Facilitate a strategic review of APAS to increase its relevance and value to participating member companies.
Lead Committee: Technical
A Actively support ACCI Policy development to create best business environment
Business competitiveness and reduce regulatory burden
C Publications Update: “ Guidelines for Manual Handling”
Health & Safety priority area
S Promote our Industry
With main focus on women and stem careers as agreed Nov 17 Council meeting.
S Support and promote Paintback ongoing
G Strategic Planning Conduct mid cycle review of Strategic Plan 2016-2020
G Appoint new auditors Council Policy
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OTHER
ITEM 12 ANY OTHER BUSINESS
Nil
ITEM 13 DATES AND VENUES FOR 2018 MEETINGS
Thursday 28 June 2018 - Sydney
Wednesday 21 November - Melbourne
Annual General Meeting
Wednesday 21 November 2018 - Melbourne
ITEM 13 CLOSURE
There being no further business, the Chairman declared the meeting closed at 2.25 pm.
Signed as a correct record.
Chairman Date
Secretary Date
1 | 4
1. FINANCE
The financial statements to the end of April 2018 are attached.
Council will note the following:
Income from other sources indicates a positive variation of $7,288.
Following the decision to make the PA position redundant in September 2017,
the April salaries variation is $42,658 under budget.
Overall office expenses are within $6,040 of budget.
Legal expenses connected to the Zero VOC Claims activity indicate a current over
spend of $8,827 against budget.
Overall, the budget indicates a bottom line profit at the half way point of $23,366 against
the target budget loss of $17,777 (an overall positive variation of $40,543).
2. ZERO VOC CLAIMS UPDATE
To date, 8 companies have agreed to amend their Zero VOC claims relating to products.
However one company, Ecolour, ignored an initial APMF letter and then a subsequent letter
from the APMF’s legal advisors (Corrs). A complaint was then lodged with the ACCC in late
2017.
After speaking to the ACCC and providing further information on request, no further activity
has been noted from the ACCC. A second letter, as attached, was then forwarded to the
ACCC in May 2018.
The ACCC has recently stopped returning the APMF’s phone calls and replying to follow-up
emails on the issue and has also to date failed to agree to meet with the APMF to discuss
our concerns. It would appear that this issue may not be considered a high enough priority
matter for the ACCC, which is very frustrating. The same problem recently confronted the
British Coatings Federation with their ACCC counterpart.
Without ACCC support, the options moving forward seem to be either:
The APMF taking the matter to the Federal Court at a significant cost (an estimate has
been sought from Corrs on such an action); or
Corporate Objectives 22 Feb 2018 No. of Pages:
4 Agenda Item
5
CEO Report Attachments: No: 4 For: Information
2 | 4
The APMF could initiate a target communications strategy aimed at informing EColour
potential customers of the misleading and deceptive claims being made by EColour.
This would include:
1. A press release on the APMF website;
2. Targeted for paint articles in the local/regional press around the 2 known
EColour distribution outlets;
3. An article in the SCAA magazine; and
4. An APMF information sheet on EColour to be distributed to customers via
member company representatives.
3. NICNAS COST RECOVERY IMPACT STATEMENT
3.1 NICNAS Strategic Consultative Committee
The SCC held its ninth meeting on 17 April 2018 in Sydney. Key outcomes from the meeting
were as follows:
Members discussed the draft Rules and Categorisation Guidelines for the proposed
new scheme, and noted that the public comment period on these documents has
been extended until 31 May 2018.
Members reviewed our regulatory and financial performance to the third quarter of
the 2017-18 financial year.
3.2 NICNAS Cost Recovery Impact Statement
The APMF responded to the 2018/19 Cost Recovery Impact Statement
For 2017/18, the APMF successfully argued that NICNAS fees and charges should not be
increased. This year, NICNAS is seeking to increase its fees and charges which the APMF
again believes is not justified on the grounds that NICNAS reserves have continued to grow,
possibly due to the highly conservative nature of NICNAS assumption budget setting. The
attached submission refers.
3.3 NICNAS Draft Exposure Bill
Following member feedback , the APMF submitted the attached comments to NICNAS.
3 | 4
4. TECHNOLOGY REPORT
The APMF reviewed its IT framework for cyber risks early in 2018 and addressed areas of
perceived weakness. The server software is now a priority issue as the 2007 software does
not permit the APMF to upgrade its office software beyond Microsoft Office 2010 and the
server software itself is reaching the point where it can be expected that Microsoft support
and upgrades will cease. Therefore it is time to update the service software and licenses to
address the above. The target date for the completion of this work is mid-June.
5. REVIEW OF PRODUCT STEWARDSHIP ACT 2011
The APMF attended a Product Stewardship Review Forum in Sydney on 16 May 2018 and worked with Paintback key member companies to finalise its submission into the Review. A copy of the submission is attached and a summary of the key points discussed at the Sydney Forum follows: Sydney Product Stewardship Review Forum – 16 May 2018 The Forum was conducted by the Department of the Environment and Energy Waste Policy Division. The Government’s position is as follows:
The Act provides a sound framework for a national approach to product stewardship.
The objects of the Act are still relevant.
The Voluntary Accreditation Scheme needs reinvigorating. This includes streamlining of applications and the need to demonstrate value from such accreditation.
The Government is considering possible new ‘cost recovery’ mechanisms to offset its costs incurred by its waste policy activities (with a reference to National Computers and TV Scheme).
The government accepts that greater transparency is needed and a more systematic approach is required in identifying and pursuing new priority areas.
Paintback was mentioned in the context of the challenges schemes confront when state regulations must be changed to permit a scheme to operate (in our case, the need to exempt trade Architectural and Decorative (A&D) waste paint from state regulations to permit this waste stream into the scheme).
Paintback was also mentioned as a scheme that is investing in research and development to discover better ways to extract value from waste A&D paint.
The APMF raised the issues of packaging being included within the Paintback scheme, yet no exemptions were given to participating companies from their National Packaging Covenant Obligations.
4 | 4
The Forum also focussed heavily on ways to improve the operations of the National Computer and TV Recycling Scheme.
The Government is considering whether the National Computer and TV Recycling Scheme
requires a significant redesign to address a range of issues including: re-exporting;
increasing coordination between the four schemes to more efficiently meet the reasonable
access provisions of the ACT; and whether other products such as TV peripherals, small
domestic appliances, batteries and other products could be included into this arrangement.
6. BRADFIELD BUDGET NIGHT DINNER IN CANBERRA
I attended this year’s Bradfield Budget night dinner in Canberra, as a guest of Concept
Paints. The evening included speeches on the budget from the PM, the Treasurer and most
members of cabinet. I had the opportunity to also personally meet the new Deputy PM
Michael McCormack, the Minister for Infrastructure Paul Fletcher and the Assistant Minister
for Home Affairs Alex Hawke (my local member).
The night’s highlight for me was when Minister Fletcher referred to the APMF 2017 letter
regarding our industry and asking how the Paintback initiative was proceeding.
7. STANDARDS AUSTRALIA COUNCIL MEETING - 31 MAY 2018
As CEO, I represent the APMF on the Standards Australia (SA) Council and I attended a SA
Council meeting on 31 May 2018. At this meeting, SA presented its action plan 2018-19 and
updated member organisations on the 2018 review of its future distribution arrangements.
The aim of this review is to achieve market value for its intellectual property and ensure that
adequate funds are available to cover its future operations.
Richard Phillips Chief Executive Officer Attachments: APMF Financial Statements for April 2018 APMF Letter to the ACCC dated 1 May 2018 APMF Submission re: NICNAS Cost Recovery Impact Statement 11 May 2018 APMF Submission re: Product Stewardship Act Review 16 May 2018 APMF Submission re: NICNAS Draft Exposure Bill 31 May 2018
Suite 604, 51 Rawson Street, EPPING NSW 2121 P: 61 2 9876 1411 F: 61 2 9876 1433 W: www.apmf.asn.au
1 May 2018 Mr Scott Gregson Executive General Manager, Consumer Enforcement Australian Competition and Consumer Commission Email: [email protected] Dear Mr Gregson,
Complaint regarding “Zero VOC” Claims by Ecolour I refer to our letter of complaint against Ecolour submitted on 21 November 2017. For your information, the APMF provided the attached additional information and held two telephone conferences with Mr McCabe in January 2018. The APMF understands that Mr McCabe has recently ceased employment with the ACCC. Our industry prides itself on being responsible and sustainable. Key achievements include being the first country to remove lead compounds from all paints and the introduction of the Product Stewardship Scheme to collect and treat waste domestic paint, the first such national industry scheme globally. In both instances, the APMF needed and received the assistance of the regulators to achieve these outcomes. To remove lead from paints, our member voluntarily removed lead from formulations but the APMF needed and received assistance from NICNAS to stop the importation of lead-based paints. To establish the Paintback Scheme, the APMF worked with all levels of government to have trade waste reclassified so that it could be collected by the Scheme and then gain the necessary authorisation for the scheme from the ACCC. Regarding the “Zero VOC” marketing claim, the APMF has managed to resolve all identified Zero VOC marketing concerns with a significant number of companies through direct contact, except for Ecolour. Ecolour has built a multi-million dollar business using a business model that relies on marketing claims that are deceptive and misleading and continues to resist all industry requests to correct its claims. My members consider that EColour’s behaviour in the marketplace creates a significant reputational risk to our industry. The APMF believes that a letter from the ACCC to Ecolour would prompt Ecolour to correct the current situation and protect consumers. Therefore, ACCC assistance to address this matter would be very much appreciated. Yours sincerely,
Richard Phillips Chief Executive Officer
Suite 604, 51 Rawson Street, EPPING NSW 2121 P: 61 2 9876 1411 F: 61 2 9876 1433 W: www.apmf.asn.au
11 May 2018 NICNAS CRIS Consultation GPO Box 58 Sydney NSW 2001
NATIONAL INDUSTRY CHEMICAL NOTIFICATION ASSESSMENT SCHEME
COST RECOVERY IMPACT STATEMENT 2018/19
The Australian Paint Manufacturers’ Federation Inc. (APMF) appreciates the opportunity to comment on
CRIS 2018/19.
The APMF represents the surface coatings industry in Australia. Surface coatings manufacturers turn over
some $2.7 billion per annum (wholesale) and produce around 90% of all surface coatings used in Australia.
The surface coatings industry is committed to the development of better, safer and more sustainable
products. Hence, our industry relies heavily on the services provided by NICNAS and the APMF is a strong
supporter of the current reform agenda.
This CRIS comes at a time of unrivalled structural change and realignment in our industry. Whilst Australia in
2018 still manufactures a high percentage of its surface coatings, several medium-sized companies have
ceased producing surface coatings in Australia in recent years and are now importing all of their product
from overseas manufacturing facilities. Examples include the closure of manufacturing plants by BASF,
Axalta and Resene, all of whom point to the high costs involved in undertaking manufacturing activity in
Australia.
The APMF also notes the increase in NICNAS net assets over the past 5 years, increasing from $4.3 million in
2013/14 to a projected $10.1 million this year. Each year during this period, NICNAS has increased its net
asset position to a level now that seems to provide an adequate basis for NICNAS to meet it future capital
requirements and have a reserve to mitigate any demands on its regulatory activities.
It is acknowledged that there has been no increase to the registration fees or charges over the past 4 years,
other than as prescribed in the budget measures for the implementation of the reform agenda. Nevertheless,
based on past financial performance it would appear that the overall budget assumptions used by NICNAS
may be too conservative, as NICNAS tends to over-perform financially each year against budget.
The APMF position is that NICNAS fees and charges should remain unchanged for 2018/19.
Yours sincerely,
Richard Phillips
Chief Executive Officer.
Suite 604, Level 6, 51 Rawson Street, Epping NSW 2121 P: 61 2 9876 1411 F: 61 2 9876 1433 W: www.apmf.asn.au
16 May 2018
The Director
Stewardship and Waste Section
Department of the Environment and Energy
GPO Box 787
Canberra ACT 2601
REVIEW OF THE PRODUCT STEWARDSHIP ACT 2011
Background
The Australian Paint Manufacturers' Federation (APMF) appreciates the opportunity to comment
on the Review of the Product Stewardship Act 2011 (PSA). The APMF represents the surface
coatings industry in Australia. Surface coating manufacturers turn over approximately $2.5 billion
per annum and around 90 percent of all surface coatings used in Australia are currently
manufactured locally. By way of further background, the APMF lead the paint industry’s
development of a Product Stewardship Scheme “Paintback” in May 2016, for the collection and
treatment of waste domestic architectural and decorative (A&D) paint across Australia.
Review Terms of Reference
The review terms of reference invite consideration as to whether the current PSA either enables, or
could enable, realisation of the benefits product stewardship can deliver to Australian towns, cities,
the environment and the economy across the following areas:
1. The extent to which the objects of the PSA are being met and whether they remain
appropriate;
2. The effectiveness of the accreditation of voluntary product stewardship schemes and the
Minister’s annual product list in supporting product stewardship outcomes;
3. The operation and scope of the NTCRS;
4. The interaction of the PSA with other Commonwealth, state and territory and local government
legislation, policy and programs; and
5. International and domestic experience in the use of product stewardship to deliver enhanced
environmental, social and economic outcomes through product design, dissemination of new
technologies and research and development.
The focus of the APMF submission is on terms of reference 1, 2, 4 and 5.
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Objects of the Act
The APMF strongly agrees that the PSA’s objectives are being met and that they remain
appropriate. For example the Paintback scheme now delivers the following public and
environmental benefits:
An increased volume of waste architectural & decorative (A&D) paints and their containers
being returned for proper disposal, thereby diverting waste A&D paint from landfills, sewers
and stormwater infrastructure. Paintback currently operates from around 90 permanent
collection sites and also offers pop-up collection events across Australia and provides a service
to over 16 million people.;
Reduced likelihood of waste A&D paint being stored in households;
Previous state and territory “household hazardous chemical” (HHC)” or “household hazardous
waste” (HHW) programs did not accept trade A&D waste (i.e. waste originated from trade
users). For this reason, trade A&D waste was frequently stockpiled (sometimes for many years)
and intermittently disposed of in landfill;
A reduced financial burden of managing waste A&D paint from State and local government
(2015-16 national estimated cost was around $3 million).
An increase in educating and encouraging retail and trade users to return waste A&D paint for
collection and proper disposal; and
New investments are now being made to research the possibilities for re-use of surplus A&D
paint and to also identify more efficient methods for safely disposing of this waste.
None of the above would have been possible without the framework provided in the Act.
Effectiveness of Voluntary Accreditation Schemes
The APMF supports this aspect of the product stewardship framework. The stated aims of
voluntary accreditation are to recognise and encourage product stewardship schemes without the
need to regulate. This also provides an assurance to the community that voluntary product
stewardship arrangements are meeting the communities’ expectations. A key benefit of
accreditation appears to be improving product marketability by providing the public with
confidence that accredited arrangements generate real and effective outcomes.
The Australian Government’s product stewardship accredited logo is intended to identify
participants and helps inform customers wanting to make sustainable purchasing decisions.
The current perception is that the voluntary product stewardship accreditation process is
costly/resource intensive which creates a barrier to new applicants. For example, the Financial
status of the organisation requires an “independent assessor’ who must follow guidelines that total
around 70 pages and use a template that totals around 60 pages.
The government also needs to market the brand, so that the community understands the value
behind the brand. This may also encourage new entrants, by way of manufacture or imports, to
join a voluntary accredited scheme.
To date, two voluntary schemes have been accredited (Mobile Muster and FluroCycle). Mobile
Muster commenced in 1998 and gained voluntary accreditation in 2014. FluroCycle, commenced in
2013, and has also since gained voluntary accreditation. This low number is evidence of the current
short falls around voluntary accreditation.
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Ministers’ Annual Product List
One of the mechanisms provided under the PSA is the annual ‘product list’, which details the
classes of products that the Federal Environment Minister is proposing to consider over the next
year of the Act. For waste A&D paint, this product appeared in the 2013 annual product list and
the listing was effectively used by our industry to then progress to the Paintback scheme launch in
May 2016.
Significantly, this list does not carry any promise of action by government, only that products will
be considered. Whilst there is a requirement in section 108A to explain why an item is on the list,
there is no requirement to explain why an item is subsequently removed from the list. Nor is there
any legislative requirement to explain the progress of items on the list.
Government has a good policy framework and the PSA provides the legislative underpinnings of a
solid system. But there is still no explanation made for what is required for products to progress to
a co-regulatory or mandatory scheme, if a voluntary scheme for a listed product fails to emerge
after a number of years.
Interaction of the PSA with other Commonwealth, State and Territory and Local Government
Legislation, Policy and Programs.
There are examples of cross-over and negative consequences due to the operation of schemes
established under the PSA, with programs such as the Packaging Covenant.
Paintback was established to responsibly dispose of unwanted paint and its packaging. The
product’s container is an integral part of stowing and transporting it before, during and after being
used. Paintback includes the packaging because it can be recycled into other products and should
not go into landfill. As such it is also addressing the used packaging material that is also the
subject of the Packaging Covenant.
Regarding the Packaging Covenant, to date the relevant EPAs have been unwilling to accept that
Paintback member companies, who are meeting a significant proportion of their obligations under
the Covenant, should be exempted from the same.
The majority of paint packaging is metal containers which is fully recyclable and less than 1% of all
packaging involves distribution packaging. Regulations also covers the design of these containers
to ensure safe transport and storage to mitigate the risk of environmental hazards associated with
any spillage. Hence the scope to redesign this packaging is limited compared to other fast moving
consumer goods.
Based on the most recent data from the “Keep Australia Beautiful” litter index (2016/17), metal
industrial cans, which would include paint cans, represented 0.3% of all metal container litter and
0.02% of all litter streams.
The Paintback scheme also offers significantly better tangible outcomes/KPIs than is required by
government.
For all the reasons outlined above, companies that participate in Paintback should be exempted
from the Packaging Covenant.
4
International and Domestic Experience
Aside from Australia’s Paintback, there are only three known examples of waste A&D paint product
stewardship globally.
Canada
Product Stewardship schemes in Canada commenced in 1994 in British Columbia and the schemes
operate in response to regulatory frameworks that differ from province to province.
All ten Canadian provinces now have paint product stewardship, or extended producer
responsibility (EPR) legislation in some form, with eight relying upon EPR and the other two reliant
upon less regulatory product stewardship under a number of differing schemes.
In most cases, program fees are assessed at the first point of sale in the province and ultimately
passed through to consumers in the price of new paint purchases, although the visibility of these
fees can vary by province.
Product Care® in Canada, the largest scheme operator in Canada, currently charges the following
fees per region for its paint HHC take back:
British Columbia/
Manitoba Saskatchewan
New Brunswick/Nova Scotia/
Newfoundland and Labrador/
Prince Edward Island
100-250 ml $0.20 $0.10 $0.20
251 ml-1 litre $0.25 $0.25 $0.35
1.01-5 litres $0.60 $0.60 $0.70
5.01-23 litres $1.50 $1.50 $1.50
Costs in CAD as of 2017
Key attributes of the current Canadian schemes are:
Cost per litre sold varies from 9 cents to 25 cents per litre;
Emphasis for water based paints is on paint to paint recycling (over 50%);
Similar rates to Australia for recovering and recycling steel and plastic from packaging (Metal –
100%, plastic – significant recycling);
Solvent based paints are treated to convert waste to energy (approaching 100%);
Low levels of investment by Product Care towards achieving better disposal options; and
No product stewardship schemes for waste A&D paint exist in the three northern Canadian
territories.
USA
Since July 2010, nine US states have adopted EPR legislation for industry-led paint collection. This
is based upon model legislation facilitated by the Product Stewardship Institute (PSI) and
supported by the American Coatings Association (ACA) representing paint manufacturers.
In each state, the programs are managed by the ACA-established PaintCare® program, which is
funded by a fee schedule consistent across each state, based on sales in the state and passed
through to consumers.
5
PaintCare USA currently charges the following program recovery fees:
Half Pint or less $0.00
Half Pint to 1 Gallon $0.35
1 Gallon $0.75 (19.8 cents per litre)
1-5 Gallons $1.60
Note: 1 US Gallon = 3.78 litres
Costs in USD as of 2017
Key attributes of the current USA Schemes are:
Cost per litre sold varies from 0 cents to 19.8 cents per litre;
Emphasis for water based paints is on dewatering and composting;
Similar rates to Australia for recovering and recycling steel and plastic from packaging (Metal –
100%, plastic – significant recycling);
Solvent based paints are treated to convert waste to energy (approaching 100%);
Again Low levels of investment towards achieving better disposal options; and
No product stewardship schemes exist in the remaining 43 states.
New Zealand
In New Zealand, paint retailer Resene has established a voluntary paint collection program called
Paintwise funded through a voluntary levy on Resene paint sold and from separate fees on non-
Resene branded paint and trade waste paint returned. Resene still bears some of the program
costs.
Resene Paints charge 15 cents per litre (NZD GST inclusive) on retail paint to fund its PaintWise
program managed by the 3R Group. Resene Paints charges non-Resene branded paint at $1 per
can (GST inclusive) up to 4 litres and $2.50 (GST inclusive) per can for over 4 litres. Dulux NZ also
offers a scheme for its trade customers.
Key attributes of the NZ Schemes are:
Cost per litre sold varies from 15 cents to 62.5 cents per litre;
Emphasis for water based paints treatment option is on recycling;
Similar rates to Australia for recovering and recycling steel and plastic from packaging (Metal –
100%, plastic – significant recycling);
Solvent based paints are treated to covert waste to energy (approaching 100%);
Significant effort towards the commercialisation of a non-structural concrete product
(PaintCrete) that incorporates waste acrylic paint;
Low levels of investment towards achieving better disposal options (due to lack of investment
into research and development options; and
A significant free riding issue occurs outside of the Resene/Dulux schemes.
6
Paintback Australia
This scheme is the first voluntary national product stewardship scheme for waste A&D paint
nationally. Paintback commenced operations in May 2016 and is funded by a 15 cent per litre levy
(plus GST). Key attributes of the Paintback scheme are:
Approaching 90 collection sites;
By volume, Paintback covers over 95% of A&D paints sold in Australia;
Paintback is committing significant resources to its R&D program to find new uses for waste
paint;
Provides a service to over 16 million Australians;
Since launch, over 5 million kilograms of unwanted paint and packaging have been diverted
from landfill;
Solvent based paints are treated to convert waste to energy;
Over the next 2 years, it plans to continue to establish permanent collection sites across
Australia, providing services within 20km of 85% of the population; and
By 2021, Paintback’s goal is to collect and treat 45 million kilograms of waste A&D paint and
packaging.
United Kingdom
In the United Kingdom, recent paint industry attempts to establish a voluntary product stewardship
scheme for waste architectural paint have been hampered by the lack of an existing regulatory
framework to support a product stewardship scheme. See the attached for more information.
https://www.duluxtradepaintexpert.co.uk/web/pdf/sustainability/FINAL-AkzoNobel-ReColour-
Briefing-Paper.pdf
Comparison of Australia to other existing overseas schemes
Australia Canada USA NZ
Coverage
(states/provinces/territories)
National 10/13 9/52 National
Cost/Litre sold (cents)
Excluding tax (AUD as of 27/4/18)
15 6-36 13-26 14-58
R&D emphasis High Low Low Medium
Packaging Recovery High High High High
Free Riding Low N/A Low Significant
Conclusion
An effective product stewardship system helps to create a sustainable and circular economy.
Encouraging the flow of complex materials back to re-processors and recyclers encourages
innovation and keeps those materials out of land fill. Australia has a good National Waste Policy
which is underpinned by solid legislative framework. However there are a number of areas that can
be improved to improve the management and efficiency of the PSA as detailed in the following
section.
Overseas experience indicates that a national approach to product stewardship achieves the best
outcomes. Global experience clearly shows that without national policies and legislative
frameworks, industry attempts to create effective product stewardship schemes often fail to
eventuate
7
State EPAs also need to encourage greater participation in voluntary product stewardship schemes
and in the case of waste paint, Paintback companies should be exempted from the requirements of
the Packaging Covenant, as these companies are already fulfilling their obligations under this
Covenant through participation in the Paintback scheme.
Finally, companies that do the right thing by participating in a relevant product stewardship
scheme should be recognised for their commitment to waste reduction and sustainability.
Government procurement criteria should also include consideration of participation in such
voluntary programs.
APMF Recommendations
Identified areas for the improvements of the operations of the PSA.
APMF Recommendation 1 Government Procurement Policies
Government purchasing agencies and commercial arrangements available through Procurement
Australia should recognise the membership of a company in an accredited voluntary scheme and
give weight to this membership as part of their decision making criteria. This would provide an
additional incentive for companies to seek membership of a relevant accredited voluntary scheme.
APMF Recommendation 2 Voluntary Accreditation Cost Structure
The process to seek and the ongoing costs of maintaining voluntary accreditation should be
simplified and less resource intensive.
APMF Recommendation 3 Communications Strategy and Brand Management
Prepare and fund a communications strategy, with agreed roles, activities and outcomes, so that
public receive strong, consistent messages about the voluntary accreditation scheme within the
PSA.
APMF Recommendation 4 Annual Product List Transparency of Decision-making
Government should outline the criteria for a listed product to be considered for co-regulation or
regulation, when it becomes apparent that barriers to the development of new voluntary scheme
cannot be overcome.
APMF Recommendation 5 Develop Criteria to Exempt Eligible Schemes from the PC
Companies that join schemes that include the collection of packaging that also delivers tangible
and measureable outcomes in line with the NEPM for Used Packaging Material of should be
exempted from the Packaging Covenant.
Yours sincerely,
Richard Phillips
Chief Executive Officer
Suite 604, Level 6, 51 Rawson Street, Epping NSW 2121 P: 61 2 9876 1411 F: 61 2 9876 1433 W: www.apmf.asn.au
31 May 2018 NICNAS REFORM GPO Box 58 Sydney NSW 2001
DRAFT EXPOSURE CHEMICALS BILL 2018 The Australian Paint Manufacturers’ Federation Inc (APMF) appreciates the opportunity to comment on the Bill. The APMF represents the surface coatings industry in Australia. Surface coatings manufacturers turn over some $2.7 billion per annum (wholesale) and produce around 90% of all surface coatings used in Australia. The APMF is a strong supporter of the objectives of the NICNAS reforms to rebalance the regulatory requirements of assessment efforts in order to be more proportionate to risk whilst encouraging innovation & investment. Section 7 – Assessments and evaluations conducted by international bodies Regarding the Industrial Chemicals Bill 2018 Exposures Draft, the APMF recommends that the following types of international assessments or evaluations be included in Section 7 on page number 8 of the exposure draft Bill, to include assessments dealing with food contact materials. These materials often involve the internal coatings systems used in food and drink containers. EU The APMF recommends that this section include assessments completed in accordance with Regulation (EC) No. 1935/2004 and subsequently reviewed by the European Food Safety Authority. USA The APMF also recommends that food contact materials/substances listed on the US Food and Drug Administration’s Inventory of Effective Food Contact Substances notifications be included in Section 7. This database lists effective premarket notifications for food contact substances that have been demonstrated safe for their intended use. See the attached link: https://www.fda.gov/Food/IngredientsPackagingLabelling/PackagingFCS/Notifications/default.htm Thank you for the opportunity to comment on the Exposure Bill.
Richard J. Phillips Chief Executive Officer Australian Paint Manufacturers Federation
1 | 1
Attached are:
1. Original Strategic Plan 2016 – 2020.
2. ‘The Strategy in Detail’ document as amended in early 2017.
3. APMF Mid-Term Performance Report based on the above documents.
The Chief Executive will present the performance report and seek Council feedback
on progress to date and advice/guidance on work in progress.
Strategic Objectives 22 Feb 2017 No. of Pages:
1 Agenda Item
6
Governance Attachments: 3 For: Discussion
\
THE APMF'S PRIME FUNCTIONS ARE: To advance, encourage and protect the interests of the paint industry and all of its
members;
To promote the development of the manufacturing resources of Australia;
To provide an interface between the industry and the Government, other industry and non-industry organisations, the media and the general public;
To improve the business climate in which the industry operates.
To provide a forum for coatings manufacturers to discuss issues.
To promote public policies that align to members' commitment to the principles of sustainability in terms of economic, environmental and social responsibility and financial viability.
To encourage industry best practice through the establishment of voluntary standards and programs.
To monitor and anticipate legislative developments and other focuses on the coatings industry and to set industry priorities and positions.
To create strong alliances with other key industry organisations and relevant international associations.
To develop and provide guidance and information to members on legislation and other requirements to assist members achieve their regulatory obligations.
To arrange the collation of statistical data and other information to assist in the development of the market as may be conducive to the interests of members.
To promote the benefits of the use of coatings.
To ensure value for money for its entire membership.
THE APMF'S KEY ACTIVITIES ARE:
STRATEGIC PLAN 2016-2020
OUR MISSION We represent and advance the interests of our members
to ensure the sustainability of the Australian Paint Industry.
KEY OUTCOMES
Support practical, relevant regulation that is evidence-based.
A safer, more environmentally friendly, sustainable economy achieved at a more reasonable cost to industry.
Strong industry alliances and regionally/globally connected.
Assist members achieve their regulatory obligations.
OUR PILLARS
Respected, Credible and Influential Industry Voice.
ADVOCACY
Influencing and Connecting.
COMMUNICATION
Advance Sustainability, Safety and the Environment.
SUSTAINABILITY
Transparent and Responsible Outcomes.
GOVERNANCE
Australian Paint Manufacturers’ Federation Inc. - January 2017
THE STRATEGY: IN DETAIL To achieve this, the five pillars of Advocacy, Quality Services, Sustainability and Safety, APMF Brand/Marketing and Excellence in Governance exist.
PILLARS OUTCOME DETAILED DESCRIPTION
1 Advocacy
1 Defend the Use of Chemicals
Ongoing lobbying activity is needed to defend the use of critical substances used in coatings and inks which are not easily substituted with an alternative – those substances that help coatings perform important functions such as corrosion protection (chromates), preservatives for water-based paint (DCOIT and MCI/MIT), anti-skinning agents for solvent-based paints (MEKO), fire retardants (Boric Acid), marine coatings to protect ships' hulls (Biocides), and vehicle refinish production clear coats (Isocyanates).
Examples of success include Carbendazim (2010), Free Silica (2013). Currently, the APMF has made two submissions to the Poisons Scheduling Committee to defend the use of MCI/MIT and DCOIT.
It is estimated that defending the use of Carbendazim saved the industry from $150 m in costs.
2 Effective Chemicals Management
Following lobbying from industry (including the APMF), the Commonwealth Government has recently announced a reform program for NICNAS to streamline the assessment process and reduce the regulatory burden on the chemicals sector.
The reforms will be implemented by the Office of Chemical Safety within the Department of Health. Work on the reforms will commence immediately and be fully implemented by 1 September 2018.
The Government has estimated that red tape will be reduced by an estimated $23 m per annum when the reforms are fully implemented. As the surface coatings/printing inks industry is the largest NICNAS assessment category (around 50%) and as Polymers of Low Concern currently comprises around 40% of all new chemical certificates issues, APMF members should collectively derive a net benefit of around $10 m per annum, when the reforms have been fully implemented. The next biggest benefactors, by assessments category are cosmetics (10%) and plastics (8%). (Source: NICNAS).
Recommended APMF Position: It is crucial that APMF provides detailed technical input into the new framework, to ensure that the future regulatory burden is as light as possible.
PILLARS OUTCOME DETAILED DESCRIPTION
The reform pathway involves the following:
rebalancing pre- and post-market regulatory requirements to match the indicative risk profile of a new chemical;
streamlining the existing risk assessment process for new and existing chemicals;
greater utilisation of international assessment materials; and
more appropriate compliance tools.
Key Milestones and Dates
July-December 2015
Key industry groups (including APMF) appointed to the NICNAS Strategic Consultative Committee. Discussions with key stakeholders. Publication of an Implementation Plan. Development of a series of Discussion Papers.
January-June 2016
Drafting of the Bill(s). Consultation on the proposed legislation.
July-December 2016
Subject to agreement by Government, introduction of the Bill(s) into Parliament in Spring sitting (August-December 2016).
Subject to Parliamentary consideration, passage of Bill in Spring 2016 sitting or Autumn 2017 sitting. Consultation on implementation detail for delegated legislation.
January-June 2017
Development of delegated legislation (eg, Regulations). Ongoing consultation and engagement through the Consultative Committee.
July-December 2017
Subject to passage of legislation by April 2017, making of delegated legislation in July 2017. Development of supporting material (eg, Guidelines, Notification & Assessment application forms). Ongoing consultation and engagement.
January-June 2018
Industry and staff training/education/workshops.
1 July 2018
Proposed final implementation date for reforms.
PILLARS OUTCOME DETAILED DESCRIPTION
3 Chemical Security
The APMF represents the surface coatings industry on the Commonwealth of Australia Attorney-General's Industry Advisory Group on the Security of Chemicals. The aim is to reduce the risks posed by terrorist groups accessing chemicals that could be used to target the community. To date, the APMF has disseminated information to members to raise awareness of the risks and has argued against unnecessary additional costs through a 'heavy-handed' mandated/regulated approach. Moving forward, the APMF will continue to advocate the voluntary approach that maintains a close working relationship between Government and our industry.
4 Effective Marine Coatings Regulations
In line with the Government's reform agenda 'to cut the red tape', the Australian Pesticides and Veterinary Medicines Authority (APVMA) has embarked on a project to develop a Risk Assessment Framework for agricultural and veterinary chemical products. This framework is intended to create more proportional and effective regulatory responses, including 'light touch regulations' and more streamlined interventions for products of low regulatory risk.
To facilitate consultation throughout the course of this project, the APVMA has recently established an Industry Working Group. The APMF has joined this Group to pursue the objective of reducing the current regulatory burdens with Marine Coatings. The APMF has recently created a Working Group to provide information to this APVMA project.
Key Milestones
Late 2015-Early 2016 Test the framework - Completed
Mid 2016 Consult with relevant members - Completed
2017
Gain APVMA acceptance for the draft APMF Standard to be
adopted as an APVMA-listed Standard/Federal Register of
Legislative Instruments.
The outcome will create a new fast-track registration process for new products that contain actives at concentration levels already existing in registered products.
5 Improved Business Climate
Working with our Alliance Partners, our agenda will be to:
encourage innovation; promote a level playing field; enhance the competitiveness of the industry; reduce the cost and complexity of regulation; (ADDITIONAL ITEM) seek favourable research and develop Commonwealth Government Policy
settings,
without compromising human safety or the environment.
6 Stronger Industry Alliances The APMF will continually seek opportunities to create stronger industry and forge common policy positions with other like-minded peak and industry associations including the ACCI, PACIA and ACCORD.
7 Sustainable Nano Developments The APMF position is that future Nano Particle Regulations should be based on scientific principles where nanotechnology is treated as an innovation driver and for nano materials not to be treated differently from any other chemicals.
8 Acceptance of International Standards
The Government's Industry Innovation and Competitiveness Agenda has set the guiding principle that if a system, service or product has been approved under a trusted international standard or risk assessment, Australian regulators should not impose any additional requirements unless it can be demonstrated that there is a good reason to do so. All Commonwealth regulatory standards and risk assessment processes will be reviewed against this principle.
The APMF must maintain pressure on Government to permit the use of overseas assessments and decisions from respected and trusted overseas chemical regulators (USA EPA, Canadian Pest Management Regulatory Agency (PMRA) or the European Union) for NICNAS.
(NEW ITEM) For the APVMA, seek acceptance for products already registered in New Zealand under the international assessments pathway.
9 International Influence and Engagement
The APMF to leverage its international network (International Paint and Printing Ink Council (IPPIC) and Asian Paint Industry Council (APIC)) to add value to policy, advocacy and representation functions on member services.
IPPIC membership currently includes: Australia, Brazil, Canada, China, EU, France, Germany, Japan, Mexico, UK, South Africa, India, USA and Turkey.
APIC membership currently includes: Australia, Bangladesh, China, India, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.
10 Issues Management
The APMF to monitor and manage a range of issues, including: VOCs, Green Building Standards, REACH, Spray Paint/Graffiti Control, Transport and Distribution. For the Australian Paint Approvals Scheme, the APMF will develop a strategy document to guide its input into the 2017 APAS Review.
2 Communication
1 Increased Influence
In 2017, build a new modern, mobile-friendly website with particular emphasis on improvements to the Members' Zone.
Public statements on current topics relating to our industry will be updated in the "Latest News" section.
Moving forward, the APMF will investigate the use of social medias to increase influence.
2 Industry Surveys All actions completed, including the integration of the previous Automotive Survey into the new Industrial Survey.
3 Member Updates Members well informed with advocacy, kept up-to-date with regulatory requirements and other APMF services and events.
4 Promote our Industry (NEW ITEM) Promote our industry to the next generation of our workforce.
3 Sustainability
1 Australian Standards
The APMF is a Member/Councillor of Standards Australia.
The Technical Committee to prioritise Standards that need to be revised and develop business cases to modernise our Standards.
2 Promote Occupational Health and Safety as a Key Member Priority
Provide members with guidance and support through the HSEL Committee to effectively manage their health and safety programs and reduce long-term lost time injury frequency rates (LTIFR).
3 Product Stewardship The APMF will support the implementation of Paint Stewardship Limited and encourage maximum participation.
4 Member GHS Alignment Completed 2016.
5 Industry Guides, Codes of Practice, Fact and Information Sheets
The APMF maintains a Library of over 50 Guides, Codes of Practice, Fact and Information Sheets.
Ninety-two percent are now in-date. In 2017, complete the remaining updates.
4 Governance
1
Improving our Governance Framework
Cohesive common direction between Board (strategy, finances, policy).
2 Renewed Constitution and new Board structure.
3 Transparency and accountability in assessing performance against strategy.
4 (NEW ITEM) Auditors – Appoint new Auditors every three years.
Australian Paint Manufacturers’ Federation Inc. - June 2018
APMF MID –TERM PERFORMANCE REPORT
BASED ON APMF STRATEGIC PLAN 2016 - 2020
THE STRATEGY: IN DETAIL To achieve this, the four pillars of Advocacy, Communication, Sustainability and Governance exist.
PILLARS OUTCOME DETAILED DESCRIPTION
1 Advocacy Activities and Outcome
1
Defend the Use of Chemicals:
Ongoing lobbying activity to defend the
use of critical substances used in
coatings and inks.
Titanium Dioxide:
2017:
APMF submission to European Chemicals Authority Committee of Risk Assessment on the economic impacts of the potential listing of TI0₂ as a carcinogen CAT 1.
2017 – 2018:
APMF participation via IPPIC Industry Stewardship Committee to raise our industry’s concern re the potential classification of TI0₂ as a carcinogen CAT 2B.
Regular advisory notices provided to members.
See attached Decision Implementation timeline.
Biocides:
2017:
APMF submission to successfully support the continued use of MCI/MIT and DCOIT.
2017 – 2018:
APMF input into IPPIC Biocides Paper, to defend the use of and maintain access to, a sufficient
range of Biocides to allow our products to meet customer performance needs.
PILLARS OUTCOME DETAILED DESCRIPTION
Defend the Use of Chemicals cont’d
2018:
APMF completes a review/risk analysis of the current status of coatings’ Biocides in Australia. The
output provides a clear picture of future potential review areas of use/limits per biocide via a risk
matrix.
2 Effective Chemicals’ Management:
Reform NICNAS.
Since 2016, has attended 5 public consultations and made 6 submissions to support the package. As
a member of the NICNAS Strategic Consultative Group, the APMF has used its influence to remove
barriers towards the use of overseas assessments for new chemicals being introduced into Australia
and support important future reforms to minimize future red tape around new Polymers of low
concern. Implementation date is now expected to be 1 July 2019. It is estimated by Government
that the reforms will reduce industry costs through lower regulatory costs by around $25
million/annum.
PILLARS OUTCOME DETAILED DESCRIPTION
3
Chemical Security
Advocate a voluntary approach where
Government works with industry to
disseminate information on risks as
opposed to a mandated/regulated
approach.
2016: APMF appointed to Commonwealth of Australia’s Attorney–General’s Industry Advisory Group of
Chemicals Security (AG-IAG CS).
2017-2018: Government accepts the voluntary approach as recommended by Industry and the APMF.
2017-2018:
AG-IAG CS activities wound-up. Current government activities and industry responses considered
appropriate to address the perceived security environment.
4
Effective Marine Coatings’ Regulatory
Framework.
APVMA – Antifouling
Standard/Guideline.
2017:
The APMF submitted a first draft of the draft standard for APVMA review.
May 2018:
APVMA and APMF agree on the precise framework for a new guideline. The APVMA appoints an
external consultant to progress the guideline on the existing Australian framework.
5
Improved Business Climate
Promote a level playing field
Reduce the cost and complexity of
regulation
Seek favourable R&D Policy settings
from the Commonwealth Government.
Improved Business Climate cont’d
2017 – 2018:
Undertake actions to address the misuse of ‘Zero VOC’ labelling.
To date – 8 companies have agreed to take positive actions to address the above.
One company – E-Colour, refuses to address its use of this term. A formal complaint was made with
the ACCC in November 2017. A follow up letter was sent to the ACCC in May 2018.
2017:
APMF provided input into the Department of Agriculture and Water review of current AgVet Chemicals’
Regulatory Framework and gained endorsement for the development and implementation of
anti-fouling standard guidelines.
PILLARS OUTCOME DETAILED DESCRIPTION
2016-2018:
NICNAS: See previous comments.
APMF contributes to the ACCI 2018 budget submission which includes seeking increased support for
company R&D activities. However the 2018 budget announcements on R&D did not meet our
expectations, with its negative targeting of the research and development tax incentive.
6
Stronger Industry Alliances
Strong industry alliances and stronger
ties to forge common policy positions.
Since 2017:
APMF has continually worked with the ACCI, ACCORD and Chemistry Australia to put common
industry positions to NICNAS through the Strategic Consultative Committee which has embraced
the key NICNAS reform agenda.
The APMF has been an active member and makes regular contributions to a number of ACCI
committees that deal with economic sustainability and Workplace Health and Safety Issues. The
APMF has met with the Surface Coatings Association of Australia, the Master Painters Association
and the Australian Wall and Ceiling Institute on an annual basis.
Note: SCAA has just amended its constitution to permit corporate sponsored members. This new
membership category allows companies to keep their employees as members, to increase SCAA
membership (at reduced fee levels) and receive other benefits not currently available to individuals.
The APMF has a close working relationship with the Aerosols Association of Australia and produced
the 2017 Risk Assessment of Aerosols.
8
Acceptance of International Standards
Maintain pressure on Government to
permit the use of overseas
assessments when registering new
products and chemicals.
2017: NICNAS Reforms include a new proposal to permit introducer’s use of international assessment
material to self-categorise against hazard bands.
2018: APVMA has agreed to accept NZ EPA environment assessments for its registration requirements for
anti-fouling products.
PILLARS OUTCOME DETAILED DESCRIPTION
9
International Influence and Engagement
APMF to leverage its international
network to add value to policy and
representational functions.
International Paint and Printing Ink Council:
2016 – 2018:
Attended annual meetings.
Contributed to monthly telephone catch-ups on a range of issues including TI0₂, Biocides,
Mica/Child Labour, VOCs, GHS/TDG, and Sustainability.
Asian Paint Industry Council:
2017:
Attended joint IPPIC/APIC meeting.
2016 – 2018:
APMF promoted the Paintback initiative globally, generating interest including follow-up
meetings/discussions with CNCIA (China) and BCF (UK).
10 Issues Management
APAS
2016: Conducted a cost/benefit analysis. (APAS found to be slightly positive overall).
2017: Meet with CSIRO to encourage a strategic review of APAS to revitalise/increase is value proposition.
2018: No further evidence of CSIRO actions to undertake the strategic review. Meeting with APMF scheduled
for July 2018.
2 Communication
1 Increased Influence
2016 – 2018:
Regular press releases/public statements on key issues including Paintback launch, Lead, Zero VOC claims.
2017:
Launched new website resulting in a doubling of in visits/hits and a new members only zone.
PILLARS OUTCOME DETAILED DESCRIPTION
2 Industry Surveys
Reinvigorate Industry Surveys.
2017:
Launched new services through DCA for A&D, industry and automotive sectors. Increased participation
in the latter survey with three new contributors.
3 Member Updates
2016:
58 Circulars, 10 CEO Reports.
2017:
63 Circulars, 11 CEO Reports.
2018 (to May 2018):
15 Circulars, 4 CEO Reports.
4 Promote our Industry
2017:
Expanded promotions/materials published on new APMF website.
2018: Launch Next Generation STEM Initiative.
3 Sustainability
DELIVERABLES ACTIVITIES AND OUTCOMES
1
Australian Standards
Prepare Business cases and assist with
reviewing relevant Australian
Standards.
2016:
Prepared detailed business case to achieve prioritisation of AS2311 (Painting of Buildings).
AS4361.1 (Lead Paints and Hazardous Metallic Pigments), AS4020 (Products Contact with Drinking
Water), AS1940 (Storage and Handling of Flammable and Combustible liquids). Assisted with the
review (Prior to 2016, zero paint standards had been actively reviewed over the past 10 years).
PILLARS OUTCOME DETAILED DESCRIPTION
2
Promote Occupational Health and Safety as
a Key Member Priority
HASEL Committee to review a range of
activities to address our industries total
injury frequency rates.
Achieved measurable improvement from 2013 to 2016 (2017 not available yet). See attached table and graph.
3
Product Stewardship
Implement the A&D Waste Paint
Product Stewardship Scheme.
2016:
Launched Paintback in May. CEO appointed as inaugural Paintback Company Secretary.
2017:
Paintback achieves full operational capability and administrative support and company secretarial
functions.
2018:
Attended a Public Consultation into the Review of the Product Stewardship Act and worked with
Paintback to submitted our industries comments into the Review (See Item 5).
4 Member GHS Alignment Completed 2017.
5 Industry Guides, Codes of Practice,
Fact and Information Sheets
APMF Library of 54 Guides, Codes of Practice and Information Sheets all revised 2016-2017.
New revision of Guide for Manual Handling to include new material scheduled for 2018.
PILLARS OUTCOME DETAILED DESCRIPTION
4 Governance
1
Improving our Governance Framework:
Renew Constitution and Board
Structure.
Improve transparency and
Accountability.
Cohesive linkage between strategy,
finance and policies.
Appoint new auditors every 3 years.
2017:
Renewed Constitution and Board structure.
Approved a range of policies as follows:
Accountability and Transparency Policy
CEO Recruitment Policy
Committees Policy
Council Attendance Policy
Council Confidentiality Policy
Council Member Induction Policy
Council Member Recruitment Policy
Employment Policy
Financial Delegations Policy
Governance Policy
Staff Recruitment Policy.
Published the above in a Councillors’ Handbook with APMF Policies and other guidance materials.
Council agendas moved to electronic delivery.
June 2018:
Council to review new auditors for the 2018/2019 audit.
ECHA/CLP TIO₂ DECISION IMPLEMENTATION TIMELINE
October 2017
Publication of RAC opinion
16 November 2017
Caracal Discussions
15 December 2017
Comments to be submitted to
EC
February 2018*
Publication of draft ATP
Authoritative Discussions at the CARACAL Meeting
(NOTE: CARACAL stands for Competent Authorities
On REACH and CLP, with CLP meaning Classification, Labelling and Packaging) EU
Experts from Each Member State (Country)
March 2018
Discussions of PSLT/TiO₂ at
Caracal
June 2018
REACH Committee
May 2020*
Potential implementation of
classification
CARACAL Meeting to review decision in
light of additional information provided
by Stakeholders (including CEPE/IPPIC
Australian Paint Manufacturers’ Federation Inc.
WORKPLACE SAFETY SURVEY 2017
The aggregate results for the data relating to July 2015 – June 2016 injuries is provided below. LTIFR (1): The number of incidents involving 1 or more lost days per million hours worked.
MTIFR: Medical treatment injury frequency rate (includes LTIFR(1) per million hours worked.
WDLPE: Workdays lost per employee.
2013 2014 2015 2016
Number of Participating Companies 9 8 7 9
Total Number of Employees 2,781 3,507 2,306 3909
Hours Worked (million) 5.4 7,3 4.7 7.5
Workdays lost per employee 0.35 0.08 0.09 0.08
LTIFR (1) 6.32 6.02 6.64 4.41
MTIFR 9.29 11.91 11.36 8.43
0
5
10
15
20
25
30
2010 2011 2012 2013 2014 2015 2016
Incid
en
ces p
er
millio
n h
rs w
ork
ed
LTI (one day or more) & MTIFR Injuries
LTIFR(1)
MTI
2
Categories of Injuries:
From the various categories of potential injuries, the following table represents the most common
forms of injuries and their percentages based on injuries reported by members:
Category of Injury 2012 2013 2014 2015 2016 Falls from Height 0.0% 0.1% 1.4% 0.8% 2.4%
Falls on the Same Level 8.1% 2.6% 5.4% 10.3% 8.5%
Hitting objects with a part of the body 11.1% 4.4% 11.0% 11.4% 12.1%
Contact with Machinery (any moving part,
pinch point)
0.0% 1.6% 6.3% 3.3% 3.0%
Being hit by moving objects (including
anything falling, moving, cut by knife etc)
18.7% 5.6% 7.3% 12.3% 9.4%
Repetitive movement and other mascular
stress (including actions such as pulling
pushing, lifting, carrying and twisting)
33.2% 30.8% 37.6% 37.3% 27.8%
Contact with electricity 0.0% 0.3% 0.5% 0.3% 0.3%
Contact or exposure to heat or cold 0.0% 0.0% 1.2% 1.1% 0.0%
Vehicle accident 8.6% 1.6% 2.8% 9.2% 7.8%
Contact with a chemical or a substance 6.1% 3.4% 7.5% 8.9% 11.8%
Asphyxiation – confined space type 0.0% 0.0% 0.0% 0.0% 0.0%
Drowning – applicable to marine companies 0.0% 0.0% 0.0% 0.0% 0.0%
Musculoskeletal Disorder (MSD) 7.1% 1.9% 7.0% 2.5% 3.6%
Other 7.1% 47.7% 12.0% 2.5% 13.3%
Most common form of injury: “Repetitive movement and other mascular stress”.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2010 2011 2012 2013 2014 2015 2016
Work Days Lost Per Employee
3
Pro-active Reporting:
8,032 incidents were reported for hazard/incident/near miss reports.
442 Management Safety Audits (internal and external) were conducted by reporting companies.
4,591 safety audit observations were made in the year.
The following companies participated in this survey:
Akzo Nobel Pty Ltd
Axalta Coating Systems Australia Pty Ltd
Chromaflo Technologies Australia Pty Ltd
DuluxGroup Ltd
Haymes Paint
Jotun Australia Pty Ltd
PPG Industries Australia Pty Ltd
Resene Paints (Australia) Limited
Valspar Paints (Australia) Pty Ltd
Following discussion and feedback received after the February meeting, the final work plan for 2018 is as follows:
FINAL 2018 WORK PLAN
PILLARS WORK AREA COMMENTS
A Anti-Fouling Standard Obtain APVMA approval for Draft Guidelines
A Advocate Support for NICNAS Reforms Ongoing from 2016
A Defend the use of important chemicals. Hot topics are: TiO₂, Biocides, Microplastics and Nanoparticles
In partnership with global partners IPPIC and CEPE
A Facilitate a strategic review of APAS to increase its relevance and value to participating member companies.
Lead Committee: Technical
A Actively support ACCI Policy development to create best business environment
Business competitiveness and reduce regulatory burden
C Publications Update: “ Guidelines for Manual Handling”
HSEL priority area
S Promote our Industry ‘NEXT GENERATION STEM’
With main focus on women and stem careers as agreed Nov 17 Council meeting.
S Support and promote Paintback Ongoing
G Strategic Planning Conduct mid cycle
review of Strategic plan 2016-2020.
G Appoint new auditors at next AGM Council Policy – change
every three years.
Strategic Objectives 28 Jun 2018 No. of Pages:
1 Agenda Item
7
Work Plan 2018-19 Attachments: Nil For: Discussion
STRATEGIC PILLARS
ADVOCACY SUSTAINABILITY
COMMUNICATION GOVERNANCE
1 | 1
Budget 2018/2019
At the previous Council meeting, Council discussed and then approved the 2018 Work
Plan. New areas of activity include a ‘Next Generation STEM’ communication initiative and
an update to the 2011 Guide for Manual Handling. Other areas of expenditure are to fund
approved activities contained within the Strategic Plan 2016-2020. In accordance with
Council Policy, the APMF salaries for 2018/19 will also be increased by 2 percent.
Due to reduction in full time staff from three to two since September 2017, an increase
has been sought in the temporary staff budget to $10K, to cover current programmed
leave. APMF member fee levels will be calculated in accordance with the APMF
Constitution (percentage of member sales) but the overall quantum of fees will be lower in
2018/19, in comparison to the previous year.
Recommendation
The Council review and approve the APMF budget for 2018/19.
Strategic Objectives 28 Feb 2017 No. of Pages:
1 Agenda Item
8
Governance Attachments: 1 For: Decision
Council Meeting – 28 June 2018
BUDGET BUDGET
2017/18 2018/19
INCOME
Full Membership 561,073 535,314
Associate & Ink Membership 47,328 53,680
Publications 2,000 2,000
FBT Contribution 9,300 9,300
Interest 7,000 7,000
Other (Sub lease) 17,249 17,766
Surveys 22,000 22,000
TOTAL INCOME 665,950 647,060
EXPENSESCorporate Expenses:
2.0% increase: ABS core rate of inflation to March 2017.
(Council Policy).
2.1% increase: ABS core rate of inflation to March 2017.
(Council Policy).
Prov for L/S/Leave 7,500 6,900
Audit & Accountancy 8,000 8,000
Bank Fees & Charges 2,200 2,200
Data Processing Fees 8,000 8,000
Depreciation 4,000 9,000
Electricity 4,000 4,000
Insurance 11,000 11,000
Internet & Computer 13,000 9,000
Motor Vehicle Expenses 8,000 8,000
Postage & Courier 1,500 1,500
Printing & Stationery 10,000 10,000
Occupancy Costs 74,980 77,600
Repairs & Maintenance 1,000 1,000
Sundry Expenses 3,000 3,000
Telephone 10,000 10,000
Temporary Staff 3,000 5,000
Training & Recruitment 500 500
Total Corporate Expenses 591,980 524,100
Strategic Operating Expenses:
Statistics Costs 44,000 44,000 Communications - Action 2.
APMF Website Costs 2,500 2,500 Communications - Action 1.
Meetings 8,000 10,000 Includes Governance - Actions 1 and 3.
Legals 5,000 5,000 Advocacy - Action 10
Subscriptions 1,000 1,000
Travel & Accomodation 16,059 25,000 Pillar 1 & 4 - Advocacy & Governance
ACCI 10,688 10,960 Advocacy - Action 6.
IPPIC Membership 4,500 4,500 Advocacy - Action 9.
Next Generation STEM Initiative 0 5,000 Communication - Action 4
Update Manual Handling Guide 0 15,000 Sustainability - Action 5
Total Strategic Operating Expenses 91,747 122,960
TOTAL EXPENSES 683,727 647,060
Net Profit/Loss -17,777 0
TOTAL BUDGET 665,950 647,060
26,400
PROPOSED BUDGET 2018-2019
NOTES:
Prov for A/Leave
Salaries/Superannuation 391,800 323,000
30,500
1 | 1
Appointment of Auditor
The APMF Accountability and Transparency Policy adopted in November 2017 states that an
independent auditor’s team shall not exceed 3 years.
The current APMF auditor, Rhodes Docherty were appointed at the 2015 AGM.
Under the new Policy, Rhodes Docherty must be replaced by a new auditor at the next
AGM. A decision matrix is attached.
For Information
The current APMF Auditor, Rhodes Docherty charged $7,690 audit fee in 2016/17.
LBW Partners were second placed in the 2015 analysis. (Rhodes Docherty scored 91/100
and LBW scored 89/100).
Recommendation
That LBW Partners be appointed APMF auditors at the next AGM.
Strategic Objectives 28 Jun 2018 No. of Pages:
1 Agenda Item
9
Governance Attachments: Nil For: Decision
FIN REVIEW
COMPANY NAME PRICE NFP PRESENTATION POSITION COMMENTS OVERALL MERIT
(EXCL GST) CLIENTS QUALITY 2017: Top 100 RATING RATING
1 PARTLETT, CHAVE & ROWLAND $8,000 - $10,000 YES GOOD N/A DOES AUDITING, MAINLY 72/100 3
SCORE 22/25 50/65 0/10 FOCUSSES ON TAXATION
ADVICE.
2 LBW & PARTNERS $8,500 YES VERY GOOD 55 VERY PROFESSIONAL
SCORE 22/25 60/65 7/10 CONVINCING PRESENTATION 89/100 1
LOTS OF EXPERIENCE WITH
NOT FOR PROFIT ENTITIES
3 KELLY + PARTNERS C. A. $17,000 YES VERY GOOD 23 NOT VALUE FOR MONEY
SCORE 12/25 62/65 9/10 BASED ON THEIR PRICE. 83/100 2
DECISION MATRIX - PROSPECTIVE APMF AUDITORS
SCORE KEY: PRICE - 25% PRESENTATION - 65% FINANCIAL REVIEW POSITION IN 2017 TOP 100 FIRMS - 10%