Repak told to create €20m reserve fund by 2019

Repak, the company licensed by the State to operate a statutory recycling scheme for industry, has been told by the Government to build up a "contingency fund" of €20 million by 2019.

The group, which operates under Government regulations to charge fees to major packaging waste producers such as retail groups, must assemble the fund as a condition of the extension of its licence to run the recycling scheme, which runs for the next five years.

The ring-fenced cash is intended to cover the cost of one year's operation of the statutory recycling scheme, should the Government ever decide to terminate Repak's contract, according to its most recent financial statements. The group, which is chaired by former Tesco chief executive Tony Keohane, has undergone a major corporate governance overhaul since the removal in 2013 of its former chief executive, Andrew Hetherington.

Allegations

Repak later sued Mr Hetherington over allegations of financial irregularities, which he denied. The financial statements indicate that the court proceedings against Mr Hetherington were settled last year, with no admission of liability.

Repak charges fees to its member companies depending upon how much packaging waste they produce. These fees are then used to subsidise packaging waste collection and recycling services.Its accounts show it billed its members fees of almost €24.5 million last year.