The cost of complying with the WEEE directive is forcing smaller system builders out of the market, according to trade body ITACS.

ITACS recently submitted comments to the UK Department for Business, Enterprise and Regulatory Reform (BERR) from about 200 members concerned by the administrative and cost burden of WEEE compliance. BERR will use the comments in representing the UK in the ongoing WEEE recast consultation.

Matthew Woolley, ITACS chairman and owner of Forum Computers, said: “Large retailers are searching for loopholes and the legislation is not being enforced.”

He added that small system builders are considering exiting PC assembly. “The cost of compliance does not work with their business model so they are ceasing production.”

Simon Aronowitz, managing director of business IT and marketing specialist Support Lounge, said: “The directive is disproportionately onerous on smaller retailers. Most could build a PC without a problem, but where can they store half a ton of electrical waste?”

Woolley claimed forthcoming regulations enforcing producer responsibility for battery disposal would be “a new set of costs”.

Compubase claims eight per cent of UK resellers, about 1,160 firms, perform PC assembly. Compubase’s 2008 EMEA ICT distribution observatory notes: “Mass distribution and web resale have wiped out small specialists and system builders.”

Aronowitz agreed that WEEE compliance costs will be “the straw that breaks the camel’s back” for many smaller PC assemblers.

“Laptop prices are so commoditised and many people do not want repairs any more,” he added.