Deposit return scheme 'will go ahead in August'

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bottlesImage source, Getty Images
Image caption,

All types of drinks and all containers between 50ml and three litres in size are included in the scheme

Scotland's bottle return scheme will go ahead in August despite the concerns of producers, the circular economy minister has said.

Lorna Slater also encouraged businesses to sign up to the initiative before the end of the month.

The scheme is designed to boost recycling via a 20p deposit on single-use drinks bottles and cans.

But industry critics fear it will disrupt trade, raise prices and reduce choice.

Producers have until 28 February to register for the scheme ahead of its launch on 16 August.

Asked if it would launch as planned despite all the warnings and criticism, Ms Slater told BBC Radio's Good Morning Scotland: "Absolutely. It is all systems go for Scotland's deposit return scheme.

"Our scheme is very similar to successful schemes around the world that do, as you say, increase recycling but also do that really important piece to reduce litter on our streets.

"We have all seen cans and bottles and broken glass. We've got to do something about it and the deposit return scheme is our answer to that."

Ms Slater said the scheme had already been delayed to give companies more time to recover from the pandemic.

And she stressed discussions so far had reduced costs to producers and resolved an issue over VAT from the UK government.

The minister added: "I am aware there is still some outstanding concerns from small producers and importers particularly, which I absolutely take seriously, and we are working through solutions to those as well."

Ms Slater also defended the concept of the "really exciting scheme" and said it shifted responsibility for litter from the taxpayer to the producers.

Image source, PA Media
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Scottish Greens co-leader Lorna Slater was speaking ahead of the party's autumn conference this weekend

Earlier Chris Jones, co-founder of drinks company Paragon Brands, expressed concerns about a business that projects sales of, for example 10,000 units, would be invoiced in advance for £2,000 to meet the recycling costs.

He said that in Australia producers were invoiced retrospectively, six weeks after their products are sent to market.

Mr Jones, whose Manchester-based firm imports brands from 12 countries around the world, raised questions about the inclusion of glass in the project as the country already has a "very successful glass recycling system".

And he warned the craft beer sector could see the choice of products available to consumers cut by up to 40% due to the increased costs, such as producing labels with new barcodes for the Scottish market.

"There is a huge number of smaller producers who have simply taken the option to stop selling in Scotland," Mr Jones said.

"The complications and the cost and the complexity involved in setting yourself up for this scheme just mean that the commercial returns are not there. They can't afford to trade in Scotland."

Image source, Otherworld
Image caption,

Theo Barnes brewed 30,000 litres of beer last year for Midlothian-based Otherworld

The company administering the scheme, Circularity Scotland, had been telling producers to begin registering by the end of this week, ahead of the 28 February deadline - but has now amended its website, simply asking firms to do so "as soon as possible".

Theo Barnes, of Otherworld Brewing in Midlothian, said most producers were waiting until the last minute before signing up.

He told BBC Radio Scotland's Mornings programme that the liabilities involved could potentially "bankrupt your business".

Mr Barnes said the costs range from registering the cans in advance to paying administration fees.

He also said he is aware of a small-scale producer brewer who is not going to register for the scheme and instead produce beer in Scotland but only sell it south of the border.

Mr Barnes added: "The mark-up difference means it is not worth aligning it to the scheme. It is a terrible situation to be put in."

Meanwhile, Scottish Conservative MSP Maurice Golden criticised the circular economy minister's comments.

He said: "Lorna Slater's repeated claim that it's 'all systems go for Scotland's deposit return scheme' is like someone putting their foot down at a red light and heading straight into a major pile-up.

"Scottish businesses are being expected to sign up to a pig in a poke with enormous potential risks and liabilities.

Image caption,

Reverse vending machines, like this one in Renfrewshire, are already being trialled in Scotland

On Sunday Scottish Secretary Alister Jack urged the Scottish government to rethink its flagship recycling policy.

Mr Jack said ministers should consider waiting for a unified approach with the rest of the UK.

The UK government scheme is set to launch in 2025 in collaboration with the Welsh government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland.

Scotland would be the first UK nation to introduce a deposit return scheme if it goes ahead in the summer.

Trade barrier

The Scottish government originally outlined plans in 2017, saying it represented "a step change in our level of ambition" for recycling.

It was pushed back to July 2022, with the government blaming the Covid pandemic, then delayed again until August this year.

Drinks industry critics fear the scheme could create a trade barrier between Scotland and England, as it would require firms to charge higher prices north of the border.

In December the Scottish government review, external of the scheme found many issues were "yet to be resolved" and said a "fully functioning scheme can not be in operation by August".

The scheme is being run by Circularity Scotland, Zero Waste Scotland helped design it and advised on its implementation, while environment agency Sepa is the scheme's regulator.