Dear Member,

I am happy to submit to you our annual report for 2010.

Whilst our operations and volumes managed continued to improve you will see that this year we have seen a significant reduction in the fee’s chargeable under the Producer Recycling Fund (PRF) contribution which in turn has led to a reduction in our deferred income by in excess of €2.3m. This is a trend that will continue as we have seen a further reduction in PRF charges in 2010 and at time of writing PRFs have for all categories with the exception of Category 1 – Large Household Appliances (LHA) ceased. In addition to the continued reduction of our deferred income reserve we shall see the introduction of charges to fund new WEEE early in 2011. This will be an ongoing charge and will focus all the more, our attention on how we can keep this to a minimum whilst maintaining the utmost standards and obligations to manage WEEE in the most environmentally efficient way. Your Board is particularly aware that at a time when our economy is struggling and all costs are under the microscope we need to keep a vigilant eye on our own costs and be ever mindful of our commitment to you our members to provide the most competitive service.

In my report last year I referred to the Recast of the current Directive and whilst it is still ongoing the subject of PRFs continuing is still very much an open topic with the recognition of the consumer as a stakeholder and also the effectiveness of our scheme in relation to that of our European counterparts. Indeed, we have seen many of our colleagues in Europe echo our view that PRFs have a very real role in the effective management of WEEE. We will continue to push for this for those members whose categories have to date seen the effectiveness of PRFs. Their very essence is that not only do they provide sustainable recycling and management but they support visibility, compliance and future solutions.

Needless to say I should point out that our effectiveness and success is due in no small part to our partners and fellow stakeholders. Being an industry wide compliance scheme crossing all sectors requires that we embrace all views and provide workable solutions to all our WEEE and battery obligations. Our Executive Team led by Leo Donovan has once again put in a superb performance and keeps pushing the boundaries in terms of operational performance, excellence and commitment. Keeping a wide variety of sectors up to date and maintaining excellent links with our colleagues in the Department of Environment, Heritage and Local Government (DOEHLG) and in Europe requires a considerable amount of commitment and we appear to have that in abundance. Our annual conference in 2011 will give all of you an opportunity to refresh yourselves on the various changes and proposals that will affect your businesses and the WEEE environment. Please keep an eye out for the invitations.

Finally, I would also like to say that your Board too has had a very busy year. The extensive range of topics have engaged all of us and I am thankful to my fellow Directors for their expertise and commitment to the business. In terms of our Corporate Governance Charter all of our committees, Finance and Procurement have met regularly and fully engage with the executive. On behalf of your Board we look forward to your continuing support.

Kieran Whelan, Chairman