Business and the Economy Across the Globe
Task - 1
Discuss whether firms like Rechem should be allowed to "import" chemical waste from overseas to be disposed of here in the U.K.
Rechem have thirty years of experience in solving environmental problems caused by a wide range of hazardous and toxic materials. Their range of services included the following:
· Waste Management
· Project Management
· Environmental Monitoring
Not all Countries in the World have the ability or the technology to safely dispose of chemical waste such as polychlorinated biphenyl’s (PCBs). It may be argued that it is more desirable ...view middle of the document...
3. It can break down PCB’s which are extremely dangerous.
4. Brings money into the British economy.
5. Supplies jobs for workers.
6. Licences for this type of disposal is limited and helps the environmental factor of
other countries that do not have this process and have to resort to landfills or
burning the waste at dangerously low temperatures like, America and Germany.
7. In the eighties many articles on "green" companies and industries featured Rechem
8. Rechem were praised by the Minister for the Environment at the time as "true friends
of the earth"
9. Rechem were acknowledged as a world leader in the safe incineration of dangerous
Cons:- of firms like Rechem importing & disposing chemical waste:
1. Britain is taking other countries and disposing of it for them and the sub product
of the incineration product is released into British air.
2. The research to test if it is fully liable is limited and seems to be on a trial and
3. Profit and shareprices seem more important than environmental issues.
4. The world is more environmentally aware.
5. Bad press as stories circulated about babies being born with eye malformations and
also diseased cattle near Rechem plants.
6. The Daily Telegraph reported that tests on foliage samples near the South Wales
Rechem plant showed PVB’s to be 50-100 times the pollution inspectorate’s advisory
7. A Welsh Water Authority document stated that the Pontypool plant had discharged up
to 82 times the permitted levels of lead, copper, zinc and nickel into the sewers.
8. Trouble of removing bad press scars about the safety of disposing chemicals without
discharging polluted air and that it can dispose of the ash and residue without
contaminating the locality.
9. PCB’s are highly dangerous and are believed to cause cancer and damage to the liver.
10. Contaminated cargoes of PCB would have to be transported to the treatment plant on
the road sea and air, any accidents in these situations would be disastrous and puts
the British people and wildlife in a precarious situation.
11. Dock workers and employees refused to handle PCB’s from Canada.
12. Most of Britain’s larger ports refused to handle PCB material.
Economics of Importation of Chemical Waste
Rechem have been fortunate in the market of disposal of chemical waste due to booming demand for this service where capacity could not be increased quickly due to planning permission restrictions at home and abroad. By year end March 1988, Rechem made a profit of £4.5M out of a turnover of £13.4M, which equals a 33.5% profit, the first years profit on a turnover of 19.5M was 45% at £8.8M. We can conclude that there are huge profits to be made in this area.
Rechem have completed a floatation on the stock market selling 2.6m shares therefore increasing their exposure to external pressure groups. Another factor to...