Interesting are the conclusions and observations after a year has passed since the implementation of the famous “repair bonus” adopted in France at the initiative of President Macron, by the government of Elizabeth Bourne.
The goal was to end the decades-long habit of consumers throwing away refrigerators, washing machines, microwave ovens, coffee machines, toasters, kettles, but also clothes and bedding and of course shoes, with the slightest malfunction or repairable damage, in order to buy new ones.
This regulation is included in the Anti-Waste Law for a Circular Economy, adopted in December 2022 by the French government, which provides for the return of 10 to 45 euros to the consumer from the cost of repairing an electrical device or the cost of repairing a garment or shoe . It should be noted that from January 1, 2024, the French government significantly increased the subsidy for the repair of many consumer durables.
From the outset it appeared that the response of French consumers to the initiative was very positive. Very soon repairs of household appliances and repairs of shoes, clothes and other household items (blankets, sheets, etc.) increased by 15%. However, a year after the measure was implemented, the cost of repairs and fixes appears to have risen accordingly. Red tape also appears to discourage small businesses of professionals and technicians from joining the regulation.
Questionable benefit to the consumer
According to the French Association for the Protection of Consumers (CLCV), the fees of tailors and shoemakers for the provision of services increased last year by 10% to 15%, while the fees of electrical and electronic repair workshops increased by 12 % to 18%.
One would notice that tailors, shoemakers, electricians, electronics and other professional technicians increased their prices due to inflation. The increase in inflation in France in 2023 was much lower than the increases they were asking for in their wages. Just on Thursday it was announced that 2023 ended with inflation of 4.1% in France, “bitten” in December from 3.9% that was on an annual basis in November of last year.
It is reasonable to wonder whether the government subsidy ends up entirely or even more in the coffers of large companies that maintain repair departments (to a much lesser extent it ends up in the pockets of private technicians and small professionals), who find a good opportunity to profit.
But even so, the environmental benefit of limiting waste and reducing waste is undeniable. The electrical and electronic equipment sector in France generates approximately 1.8 million tonnes of waste per year.
“Play with the competition”
CLCV analyzed data from shops and workshops across France that participate in the government program and have the ‘QualiRépar’ sign on their windows. Researchers put the microscope on about 160,000 home appliance repairs and found that between January and November 2023, technicians’ fees for fixing washing machines, built-in ovens and cookers increased by 12% on average.
Charges for repairing television sets rose by an average of 14% in the eleven months, while repair charges for mobile phones jumped 18% higher. In contrast, the average charge for repairing portable computers (laptops) decreased by 4%.
“Many factors have contributed to the increase in the cost of repairing electrical and electronic devices. Among them the effect of the interpersonal transaction between the technician and the customer, the increase in the cost of parts and raw materials, inflation, the complexity of some repairs,” notes the CLCV report, which recommends that consumers “play with the competition.”
“Continuous monitoring of prices and comparison of the charges of different technicians and professionals are necessary conditions to ensure the long-term effectiveness of the repair bonus measure,” the report underlines.
Bonuses increased this year
According to the researchers, an average French household has 74 electronic devices. The major barrier to repairing and reusing a household appliance is the cost of repair. Especially when the cost of repair approaches the purchase price of a new one – and this is precisely what the introduction of the “repair bonus” aims to address. Which, despite the observed distortions and deviations, the Bourne government decided to increase.
Thus, from January 1, 2024, the amount of the subsidy increased by 5 euros for 21 products, such as cookers, hoods, kitchens, toasters, clothes irons. Also the bonus was doubled for another 5 of the most frequently repaired appliances – TVs, vacuum cleaners dishwashers, washing machines and clothes dryers. Government support now ranges from 15 to 60 euros depending on the device.
The report is moderately optimistic
It is worth noting that the state fund for subsidizing repairs of electrical and electronic goods, the amount of which has not been disclosed but is certainly not negligible, is supported to an (also unspecified) degree by the “ecological contribution”. That is, the special charge that the French government has imposed on the prices of new appliances to encourage consumers to repair the old ones they have at home.
In any case, the French Association for the Defense of Consumers is not enthusiastic about the first year of implementation of the measure. The increase in the number of “QualiRépar” repairers remains “below initial expectations”, CLCV explains. And he cites as the reason for this some bureaucratic procedures and also the unreasonably high cost of joining the government program that act as a disincentive, especially for small businesses and private professional-technicians.
