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Year Three Celebration


PACKAGING ACCORD
YEAR THREE CELEBRATION

Packaging Accord Year Three Progress Report Launch
15 November 2007, Novotel Ellerslie, Auckland

SPEECHES

Hon Nanaia Mahuta - Associate Minister for the Environment
Tony Nowell - Chair, Packaging Accord Governing Board
Basil Morrison - President, Local Government New Zealand
Jim Glass - Recycling Operators of New Zealand
Mark Brosnan - President, Packaging Council of New Zealand

PHOTOGRAPHS

Launch celebration photographs

Paul Curtis - Welcome and Introduction

Paul Curtis

On behalf of the Packaging Accord Governing Board I would like to welcome you to today's launch of the Year 3 Progress Report for the Packaging Accord.

In particular I would like to thank the Associate Minister for the Environment, the Honourable Nanaia Mahuta and Basil Morrison, President of Local Government NZ for joining us this morning.

This report outlines the performance of industry, local and central government and recycling operators during the period July 2006 to June 2007.

The then Minister for the Environment, the Honorable Marion Hobbs, championed the 2004 Packaging Accord and with the support of the Government and Ministry for the Environment we have worked hard to make the Accord the gold standard for an effective voluntary product stewardship scheme.

It is my great pleasure to welcome the Associate Minister for the Environment, the Honorable Nanaia Mahuta to address us this morning.

 

Associate Minister for the Environment - Speech Notes

Hon Nanaia Mahuta

Introduction:
Kia Ora and Good morning. Thank you for the opportunity to be here, to help celebrate a successful year for the Packaging Accord.

This event is a great opportunity to meet people from organisations and business that play a vital part in dealing with the environmental issues of packaging.

WasteMINZ Conference:
Last week, I launched the WasteMINZ Conference and it was evident that there is an increasing momentum to ensure innovative opportunities to make sustainability a real choice for local government and communities. The government is a key partner in this vision.

The Accord's Achievements:
The Packaging Accord was set up three years ago with the aim of reducing waste from packaging. Reducing waste is one of the most important things we can do to protect our environment. A recent opinion survey reported that 89 per cent of New Zealanders think the amount of waste we send to landfill is a problem - half of those thought it was an urgent problem.

But a simple aim doesn't mean a simple job. The Accord was tasked with the challenge of bringing together diverse stakeholders - councils, recyclers, manufacturers, government and retailers - to reduce the environmental impact of a product that is everywhere in our lives today.

Three years down the track, we can conclude it has done well, reflecting the commitment and achievements of the signatories to the Accord. Some highlights I would like to mention are that the overall recovery of packaging has hit a new high, of 57 per cent, which is significantly higher than last year.

Also, the recent 2007 Awards for Excellence for Environmentally Acceptable Packaging, showed an industry demonstrating an abundance of innovation and the drive to turn it into reality. Maniaia Mist, the company that designed the Supreme Award winning kiwifruit tray made out of wood and kiwifruit pulp, was a brilliant example.

Other highlights were the purchasing of a mobile glass crusher, supported by he Glass Packaging Forum, the Make a Difference plastic bag recycling campaign, supported by the supermarket retailers, "Hanable the Can-able", the steel can sector's novel new spokesperson to encourage children to recycle and Plastics New Zealand's Design for the environment guidelines, which the former Environment Minister launched earlier this year.

We have also enjoyed other great successes in 2007. In February, the Prime Minister announced new sustainability priorities for the government with six new initiatives:

  • Waste minimisation and management
  • The household sustainability programme
  • A carbon neutral public service
  • Sustainable government procurement
  • Enhanced eco-verification, and
  • Business partnerships for sustainability

The first three projects - waste management, household sustainability, and a carbon neutral public service - are being led by the Ministry for the Environment. Waste minimisation and management work includes progressing the waste levy, enhancing product stewardship, and implementing more public recycling facilities.

These initiatives are based on our aspiration to be the first country that is truly sustainable. Sustainability should become a core value and a central part of our national identity in the 21st century.

The move to a more sustainable New Zealand is based on two factors. First are the opportunities emerging from a global market that puts a higher value on environmental integrity. Second are the risks arising from the environmental challenge the world faces today and in the future.

Importance of the Accord:
For the government, the Accord is an excellent example of product stewardship and of industry and government working together. The Packaging Accord has served as a model for other businesses to take responsibility for the goods they produce and develop their own product stewardship schemes.

Some have asked why so much importance has been placed on packaging as an environmental issue. It is certainly true that packaging is not the largest contributor to the waste stream.

But it's a visible part of our everyday life, and that means it is important that it is responsibly disposed of. Also, the packaging sector's strong growth means that, if we are not careful, packaging could easily become a greater contributor of what we send to landfill. In the last decade, packaging consumption per person has increased by a third.

And, we need to be mindful that, as we seek to set domestic standards for packaging, the beneficial consequences for our export industries could also support the efforts in our communities of interest like Australian and the Pacific nations.

I am pleased that New Zealand business has taken to product stewardship, achieving some world beating accomplishments. We are the only country with nationwide voluntary takeback of paint, and have one of the highest paperboard recycling rates in the world.

Examples like these give me the confidence that the Prime Minister's challenge for New Zealand to become the first sustainable country in the world can become a reality.

Government's role in improving the environment:
The government is doing its part by setting up the systems and support necessary to resolve major environmental issues. Our plans for an emissions trading scheme to reduce greenhouse gas emissions and the New Zealand Energy Strategy are working towards reducing New Zealand's carbon footprint. The public service is using its purchasing power to reward businesses that supply sustainable goods and services.

Reducing waste is, as I mentioned before, also an important environmental focus and the government wants to deal with waste effectively to ensure the true sustainability of our country.

As you all know, we are progressing proposals for waste minimisation and resource recovery legislation through Parliament. It is heartening to see that New Zealanders are overwhelmingly in support of what we would like to see happen. A follow-up to the survey I mentioned earlier revealed that almost 70 per cent of all Kiwis are prepared to pay a waste levy to minimise waste.

Another element of our proposals is legislation for product stewardship. Instead of concentrating on just one type of regulation or product group, we have designed legislation that is flexible and far-sighted enough not to just deal with the challenges of today, but deal with those that will challenge us tomorrow.

The proposed legislation is at the cutting edge of what is being developed around the world, and will provide New Zealand with an excellent base to meet the waste minimisation challenges ahead of us in a rational, timely and effective manner.

Of course there are contrary viewpoints and the Select Committee considerations are providing an excellent forum for robust and vigorous debate to ensure we get the best legislation possible. It is important in this debate that we keep our focus on the wider issues and use this opportunity for future-thinking - avoiding the temptations of narrow, single-issue debates.

Also as part of the government's efforts to help New Zealanders reduce their waste, we are setting up four trials for recycling in public places. The Packaging Council has shown interest in our initiative and I would like to encourage a collective involvement in making recycling in public places a reality in New Zealand.

Our funding will provide for 600 bins. We are keen to see other third parties come on board to expand the reach of this programme.

The future:
With such great achievements, of acknowledged importance, I hope the signatories to the Accord do not see these results as an opportunity to rest on their laurels. The Packaging Accord targets have nearly been achieved - some have already been. The question is no longer whether we can meet these targets, but can we exceed them?

And, looking further ahead, discussions about a third accord have already started. With such stunning results, I am not surprised you want to continue the good work.

New Zealanders have voiced their expectations about preserving and building upon our clean green brand. We must set bold targets in order to live up to these expectations, and packaging should be no exception. I encourage the packaging sector to challenge the assumption of some that regulation is the only way to achieve these bold targets.

To be truly sustainable in packaging through voluntary partnerships would put New Zealand at the forefront of environmental achievers.

Conclusion:
Once again, thank you for inviting me here this morning and congratulations on the achievements of the past year. I look forward to hearing of many further, shared achievements in the future.

 

Paul Curtis

Thank you Associate Minister.

We are getting better at recycling and at developing economic markets particularly for materials which have been more of a problem such as glass and plastics.

No sector will achieve its targets without co-operation from its partners and this does present challenges because there are, and always will be, different positions taken by brand owners and retailers, recycling operators, local and central government and packaging manufacturers. It would be naïve to think otherwise. However the Accord's strength is bringing together parties that previously often worked in isolation.

There are 4 key parties to the Packaging Accord being industry, recycling operators, local government and central government.

And it is this inclusiveness which makes this voluntary Accord in my opinion the model for other industries and for product stewardship as provided for in the Waste Minimisation and Resource Recovery Bill. This Packaging Accord exemplifies what can be achieved if the public and private sector bat on the same team against a common opponent - waste.

And for the good news: NZ is beating Australia at one event - recycling. Our recycling rate is slightly higher than Australia's and for some packaging types such as paperboard, we are amongst the world leaders for recycling.

What's more, recovery is now consistently outpacing the amount of packaging waste per capita to landfill.

This year at the half way point, we have also invited 4 million New Zealanders to join us on the field by recycling more packaging types more often and by accepting fewer plastic bags at the shops.

I will now ask Tony Nowell, Chair of the Packaging Accord to deliver the results and show how we are making a difference.

 

Tony Nowell, Chair of the Packaging Accord Governing Board

Tony Nowell

Working together is paying dividends. New Zealanders recycled 20% more packaging in the past year which is a record 57% recovery as a percentage of consumption.

To put this in perspective, this increase equates to an annual saving of around 33,000 tonnes of carbon dioxide or taking approximately 8000 cars off the road .

However to continue Paul's sporting analogy, it continues to be a game of two halves. As a society our consumption keeps increasing so that each of us now uses around 60kg more packaging each year than a decade ago. Whilst it would be easy to blame industry for using more packaging, packaging simply provides the protection for each new product that we choose to buy.

This is not just a New Zealand issue of course. Globally, the 20% of the world's people in the highest-income countries account for 86% of total private consumption expenditures. And increased consumption puts increased pressure on the environment.

The Packaging Council's data shows a worrying 7% overall decrease in the domestic production of packaging, suggesting that more manufacturing is moving overseas and the increase in consumer demand is being met by more imported products.

When we signed the Packaging Accord in 2004, we jointly accepted responsibility as stewards of packaging from its design through to its disposal. It has not been easy and I am sure I speak for every signatory when I say that more often the critics have had much louder voices than the supporters. With waste on the political agenda this year, the Accord has been under considerable scrutiny.

However, with each Governing Board meeting and as cross-sector meetings brought parties together, the opportunities have started to outweigh the challenges.

An example of this is that the packaged goods industry and recycling operators agreed that the efficiency of kerbside collections must not be threatened by calls for container deposit legislation.

I am reminded of Henry Ford's words:-

Coming together is a beginning, keeping together is progress, working together is success.

We have already surpassed the five-year recycling targets for paper and steel and are at least 95% of the way to achieving the targets for aluminium, glass and plastic. This achievement is down to sheer hard work.

Each sector report describes the effort that has gone into delivering these results and the partnerships that have evolved along the way.

  • Glass recycling has turned around thanks to partnerships developed between industry, recycling operators and local councils which benefit from the substantial voluntary levy paid by glass manufacturers, brand owners and retailers. Just recently the Glass Forum invested in a mobile glass crusher to provide a service to communities particularly in the South Island who have been struggling to find economic uses for their glass.
  • Last year we reported that the data used for steel in particular was unreliable. So this year we have worked even harder to get robust data about the production, consumption and recovery of steel and aluminium containers. This has been possible because for the first time the manufacturers of cans; the brand owners who fill them; the supermarkets that sell them; and the scrap metal brokers, recycling operators and exporters who process them, are all part of the loop.
  • Local councils and recycling operators have continued to increase kerbside collections and the types of materials that they collect resulting in better recyclability of plastics and new domestic markets opening up.
  • 76% of all paperboard is recycled which puts New Zealand amongst the world leaders; and
  • Consumers are increasingly aware of their role, thanks to campaigns by supermarkets to reduce the use of plastic bags and steel's children's cartoon Hanable the CANable.

Our recycling rate compares favourably with that of Australia, UK and the European average and, with this momentum, all parties are determined that the Accord targets will not just be met but exceeded.

So what's next?

Earlier this year the Governing Board participated in a strategic review of the Accord setting out what needs to happen to take this voluntary agreement beyond 2009 and to understand its continuing relevancy within the context of the Waste Minimisation and Resource Recovery Bill.

Whilst there are those who say that a voluntary agreement is too weak or that the targets were not tough enough, the commitment shown by every member of this Accord reaffirms my view that organisations respond best if they are part of the solution.

Industry is under no illusion that it has a year and a half to prove to local and central government that it is making packaging decisions that maximise recyclability; help develop new recycling markets; and incorporating recycling messages as part of its marketing.

However this is a joint challenge because as a net importer of packaged goods materials which are recyclable overseas may not be collected for recycling in New Zealand.

So local and central government have a reciprocal responsibility to ensure that people know where, what and how to recycle and to encourage new markets for recycling. The Government's proposed public place recycling and the decision by Auckland and Manukau councils to build Australasia's most high tech recycling centre will assist in this process.

But you only have to look at the winners of this year's Einners of this year's Environmental Packaging Awards on the slide presentation behind me to see the pace of change.

We are not standing still. Everything you see and hear this morning is evidence that the Packaging Accord has momentum. The message to reduce, reuse and recycle will be delivered to every household over the holiday season and throughout 2008.

This has been a year of enormous progress and there are some key constituents without whom none of this would have happened. I would like to thank the secretariat of the Packaging Accord under the executive direction of Paul Curtis for managing the day to day Accord work programme supported by Rachel Depree and her team at the Ministry for the Environment.

I would also like to thank the Governing Board for its support and commitment.

Together you continue to make my role as Chair of the Governing Board a much easier one.

 

Paul Curtis


Thank you Tony.

This year has seen local government and industry working together to bring about the best outcome for the Auckland region in terms of the new state of the art Materials Recovery Facility; glass recycling hitting a new high at 53%; and recycled plastics up by 11% with local councils collecting more, particularly across the Auckland region.

I am delighted to introduce Basil Morrison, President of Local Government NZ to reflect on the achievements and challenges of Year 3 of the Packaging Accord from a local government perspective.

 

Basil Morrison, President Local Government NZ - Speech Notes

Basil Morrison

Acknowledge Associate Minister for the Environment and Minister of Local Government Hon. Nanaia Mahuta and Tony Nowell, Chair of Packaging Accord Governing Board).

Local Government New Zealand is an endorsing party to the Packaging Accord, being the national voice of 85 local authorities.

Local Government is just one sector that plays a pivotal role in the packaging life cycle.

Our sector plays a role through the provision of waste and recycling services, waste minimisation programmes, and also as a major purchaser.

The Year Three Progress Report continues to demonstrate that success can be achieved through co-ordination of the sectors, and I congratulate all who have been involved in the continuing progress Year Three has brought.

Council interest and involvement in the last year has focused on new proposals such as those promoted through the Waste Minimisation Bill. This has highlighted the relevance and place of the Packaging Accord.

There is no doubt that the regulation sitting behind the Packaging Accord is about to change. Local Government is very keen for the legislation we all operate under to be updated to provide the foundation for effective product stewardship. There are differences of opinion on the detail, but I know we all support the objectives for waste minimisation in today's waste environment.

The tendering of some key council waste contracts this year has also highlighted the key role of council decisions in setting the future direction for waste management and minimisation. Local Government New Zealand plays a critical role in communicating about the Packaging Accord with councils and in promoting constructive discussion and information sharing between the parties to the Accord.

I take this opportunity to acknowledge the difficult and high profile decisions that Auckland City Council and Manukau City Council made this year on their waste contracts and facilities. These decisions are now, deservedly, being held up positively, and certainly demonstrate how councils have a significant role in working towards waste minimisation outcomes.

Two significant reports on council waste management practice were released this year. They show that councils have made real headway in their waste management planning.

The first - a report of the office of the Auditor General into waste management planning confirmed that 100% of territorial authorities now have waste management plans in place. Council reviews into their waste management plans under the new legislation will be a big job, but will provide an important opportunity for further development and technology.

The second report - a review of progress towards the targets in the New Zealand Waste Strategy reported that local government has made progress in waste management and minimisation. One indicator is that 97% of New Zealanders now have access to household recycling facilities - exceeding the target set in the Strategy. More than 320,000 tonnes of recycling has been diverted from landfills by councils.

In conjunction with the Ministry for the Environment, we commissioned a study into council recycling activities to identify any significant changes as a result of the LTCCP decisions. The results were encouraging with 72% of councils implementing recycling systems in their own buildings and other facilities that councils are involved with. In many councils these systems are supported by waste minimisation policies and staff education.

Some councils also set reduction targets, reduce waste through procurement initiatives, or have other initiatives in place such as worm farms for tearoom waste. The government's newly announced initiatives for sustainable business will provide enhanced opportunity to raise awareness of procurement options.

The good news doesn't stop there. Data collected in 2006 on council recycling activities shows that almost all councils "consistently" collect key recyclable items in kerbside collection. This includes paper, cardboard, plastics 1 & 2, glass, steel cans, and aluminum cans. Many councils have expanded their kerbside collections into other items (for example, plastics 3-7 and green waste) and many provide drop-off facilities for a range of other recyclable items.

The situation with the economics of glass recovery remains a significant concern for councils, particularly where markets are limited. Stockpiles of glass remain (and grow) in many areas.

Recent initiatives of the glass forum to fund a mobile glass crusher have been welcomed in some regions as a contribution to altering the economic situation. Achieving a long-term glass solution has become a critical measure of the success of the Accord for local government, and visible progress will continue to be a key challenge for the Accord.

The local government sector will continue to play a pivotal role in the packaging life cycle and the years ahead for the Accord. While the future is uncertain in terms of the new programmes to be mandated by the new waste legislation, councils have a keen interest in providing input into product stewardship programmes and the subsequent implications for packaging.

Year Three has consolidated the Accord foundation and framework to respond to the challenges ahead and we look forward to continued co-operation with our partners in this project.

 

Paul Curtis

Thank you Basil.

In August the Packaging Council held its 5th Environmental Packaging Awards and it is a tribute to the partnerships built up through the Accord that several of the entrants reflected the joint work of local councils, industry and recycling operators.

Palmerston North City Council became the first local body to win an Award for its partnership with contractors to use recovered glass in its local roads and pathways.

And The Warehouse and Enviroreel Plastics were Highly Commended for their partnership to take the waste plastic from the retailer's stores and convert it into viable products such as underground cable covers and cable reels.

It is true to say that when these Awards started all this was seen as "green stuff" but environmental design is now part of business as usual in the packaged goods industry.

And an integral part of industry getting packaging design right is talking to the recycling operators.

It is my pleasure to introduce Jim Glass to speak on behalf of the Recycling Operators of NZ.

 

Jim Glass - representing the Recycling Operators of New Zealand (RONZ)

Jim Glass

Let me start with some fairly amazing statistics about how much we already recycle in New Zealand which demonstrates the value of recycling to our economy.

Last year recycling operators diverted 42% of all discarded materials from landfill and helped recover approximately 400,000 tonnes of packaging, 400,000 tonnes of steel and non-ferrous scrap metal, 70,000 tonnes of concrete, 8500 tonnes of waste oil and 1200 tonnes of electronic equipment.

Put simply our role as recycling operators is to identify and promote opportunities that result in more volume, more variety and more value in recycling. Like Oliver Twist, we continually ask for More.

A major step towards achieving more was the decision by the Auckland and Manukau councils to collaborate on recycling contracts so volumes would warrant building a 'high-tech' material recovery facility. This new 'Super-MRF' will sort 80,000 tonnes of recyclable waste yearly from households and convert more than 95% into reusable product. We will be bringing the world's best facility to New Zealand.

Recycling will also get a major boost from a new waste levy which will allow us to develop new recycling markets for recovered packaging and other products.

As Paul mentioned in his introduction it is imperative that we work with the packaged goods industry to improve its understanding of what can be recycled, and where necessary to challenge recyclability claims.

A recent example was the collaboration with those promoting the plant based plastic Polylactide (PLA) for packaging as an alternative to PET. PLA is not currently recyclable here but we acknowledge that, because PLA is made from annually renewable materials, it may be able to be produced with lower environmental impacts than plastics made with synthesised oil. As a result, stakeholders in PLA resin supply and use have established a Product Stewardship Organisation for PLA.

The volume of PLA packaging used and discarded is likely to increase so we will monitor consumption, working with brand owners, packaging companies and councils to ensure that, when the timing is right, every recycling operator is able to recover and recycle PLA packaging in all forms and from all applications.

On behalf of RONZ I would like to thank the brand owners, packaging manufacturers, associations and local councils that work with us. The more we work together the more we will recycle.

 

Paul Curtis

Thank you Jim.

The Packaging Council brings together packaging manufacturers, recycling operators, brand owners and retailers. Our members manufacture over 75% of New Zealand's top 100 food and grocery brands contributing over NZ$17 billion to the local economy.

To monitor the effectiveness of how Accord parties communicate to the consumer and rate payers about recycling, the Packaging Council commissioned independent media analysis. In total positive messages about recycling reached just over 3 million people, but the survey also identified opportunities for improvement.

I would like to welcome Mark Brosnan President of the Packaging Council to speak on behalf of the packaged goods industry about some of these initiatives.

 

Mark Brosnan, President Packaging Council of New Zealand

Mark Brosnan

A common theme from each speaker is the need for teamwork. An Accord is variously defined as: harmony or agreement; a settlement or compromise of conflicting opinions; a voluntary desire to take a certain action.

The Packaging Accord is all of the above. It is a voluntary agreement to take action on minimizing waste and was a compromise between some who advocated a mandatory solution and others who preferred business as usual.

Three years in and with the Waste Minimisation and Resource Recovery Bill proceeding through the Select Committee stage, one might ask what has changed.

The content of this report is my answer. We now have a packaging recycling rate of 57% which is up there with the rest of the world.

And how are we achieving this?

  • In 2007, New Zealand recycled its millionth steel can and steel recycling jumped to 57%. To build on this people are being reminded to recycle steel cans by a campaign which taps into children's imaginations through the Hanable the Canable character;
  • At 76% we have one of the best paperboard recycling rates in the world which is the equivalent to saving 640,000 barrels of oil per year;
  • The Glass Forum has put its money where its mouth is and invested in community glass recycling opportunities bringing total contributions to around $2 million since the initial inception of a glass users group;
  • Plastics recycling increased by 11% this year with greater emphasis on Design for the Environment;
  • Brand owners got behind the 1st "12 days to a greener Christmas" campaign in conjunction with local councils and community newspapers to challenge people to think about recycling during the summer; and
  • My own company Progressive Enterprise joined with Foodstuffs to launch a Make a Difference campaign to reduce the use of plastic bags at our checkouts. With prominent and consistent messages and alternatives available, people are now remembering their eco-bags when they go out shopping. Since the start of the Accord the retail signatories including The Warehouse have eliminated 70 million bags with a corresponding reduction in plastic equivalent to 17 million two litre drinks containers. We will hit our target of a 20% reduction now that consumers are part of the solution.

And I am delighted to report that since the Make a Difference launch in July, the combined reduction in plastic bags for both supermarket groups now has us on track to reach our 20% target by June 2009.

And we have now been joined in the campaign by the NZ Association of Convenience Stores bringing the total number of retail outlets involved to over 1400.

On the back of this success, the retail signatories to the Packaging Accord have agreed to support this year's Christmas and Summer holiday Recycling campaign by promoting the Rest and Recycle concept in stores around the country.

And the reason we are doing this is quite simple. We generate an estimated 30% more waste over the summer holidays and most of it can be recycled if people put it into the recycling crate rather than the rubbish bin. The tonnes of glass recycled actually goes up by about 50% in January however sales of glass and cans go up 3 times normal levels over the holiday period so our message is to recycle it all.

We will be asking Local Government NZ to support the campaign as they did last year by encouraging councils to promote the recycling message along with holiday collection information.

In conclusion we are absolutely committed to the Packaging Accord which was the first voluntary product stewardship programme in New Zealand and recommend this as the model for other voluntary schemes. We are looking forward to starting the process of negotiating the next Accord in early 2008.

Paul Curtis

Thank you Mark. I would like to thank all our speakers this morning and I would like to thank you all for coming this morning to demonstrate your continued support for the Packaging Accord.

As you leave this morning, please pick up an eco-bag, which contains the Year 3 Progress Report, a complementary copy of NZ Packaging magazine and to emphasis the message of rest and recycle it also contains the Christmas Recycling Wreath and a bottle of sunscreen generously donated by Shiseido.

HAVE A GREAT SUMMER AND DON'T FORGET TO REST AND RECYCLE.

 
 

 

   

PACKAGING COUNCIL OF NEW ZEALAND
ACTING AS THE NZ PACKAGING ACCORD SECRETARIAT
77 Greenmount Drive, East Tamaki, Manukau
PO Box 58899, Greenmount, Auckland
PHONE: 09 271 4044, FAX: 09 271 4041