The price of packaged supermarket goods will go up 1% next year following a recycling agreement between the government, businesses and local councils.

The deal, which follows two years of negotiations, will run from 2008 to 2012 and aims to increase the percentage of waste that is recycled from 20% to 42%. This will save 210 kilo tons of carbon dioxide, equivalent to the electricity consumption of 100,000 homes.
The collection and recycling of packaging will cost businesses €250m and this will be passed on to the customer.
‘We will have to pass on the costs we make to customers but we are depending on councils to lower recycling taxes to compensate the public,’ René Roorda of the grocery association told ANP news service.
The government has allocated €115m annually towards the recycling scheme. Local councils can use this to pay for the costs they make in collecting and recycling packaging.