Faced with the risk of a sharp drop in demand due to the health crisis, the French Union of Cardboard, Paper and Cellulose Industries (Copacel) has drawn up a two-part support plan for the government.
These are the three axes of the second component dedicated to strengthening the competitiveness of the paper industry.
Axis 4 - Reducing production and environmental taxes
The taxation of production is a major factor distorting competition between France and the euro area countries.
"In France, taxes on production account for 3% of GDP, which is twice the European average, says Philippe d'Adhémar, President of Copacel. This taxation is a taxation of 'producing in France', that's all it is. When we wonder why companies leave when they have to relocate, that's the issue. The tax has a purpose, of course, but the fact is that a product made in France will be taxed where the same product imported is not."
The union is therefore asking for a reduction in the rate of the territorial economic contribution, which is a kind of property tax (imports are therefore not or hardly concerned) and the abolition of the C3S, which is linked to value added.
He also calls for a review of environmental taxation. "In many cases, environmental taxation is a performance-based tax, which does not contribute to improving the environmental performance of sites."
In particular, it would like to see the abolition of the General Tax on Polluting Activities (TGAP) waste.
"For our sector, a large part of our sites are recycling sites (recovered cardboard will generate new paper). In these bales of recovered cardboard paper, there is always a rate of unsuitable materials (such as staples, sand, plastic, etc.), which represents a significant quantity. We must complete the sorting of this waste on our sites to make it recyclable. This waste then goes to landfill. Well we pay a tax on this ultimate waste, and a tax that is particularly important. That's a big one."
Axis 5 - Simplify regulations
The aim is to limit the use of specific national regulations, but also to reduce the administrative burden which lengthens the time taken to examine cases.
In this context, Copacel would like to see an administrative simplification of the regulations and, in particular, an end to over-transposition.
Axis 6 - Fostering the development of human capital
The paper industry employs about 11?000 employees in France. And although this number has decreased in recent years, the sector must constantly recruit in order to compensate for retirements.
"The higher the number of departures, the more unbalanced the age pyramid becomes. Barely 12 % of employees in this industry are under 30 years of age, which is below the industry average (around 20 %) says the Copacel.
"Our industry is a territorial industry (it has no geographical concentration). We have very good jobs. We generally have very committed people and they have demonstrated this in this phase of containment, emphasizes the President. When one of our sites stops, it is very difficult to restart, because we lose skills that are almost impossible to find or recreate (some positions require years of training). There is extraordinary know-how, both in product design, manufacturing, and team management... It is necessary to preserve it."
Copacel therefore agrees with the MEDEF's proposals (on the exemption of 12 months of social security contributions for the first permanent contract and support for apprenticeships). The union also wants the Inter-industrial Skills Operator (OPCO2i) to continue its role of supporting apprenticeship.
