Deposit Return Scheme could be scrapped this month, green minister admits

SCOTLAND’S controversial Deposit Return Scheme could be dead and buried by the end of this month, the Scottish Government minister in charge of its implementation has admitted.

Green MSP and Circular economy minister Lorna Slater told a retail sector conference that the scheme’s fate would be decided by UK ministers, who have yet to grant the necessary exemption under the Internal Market Act.

Speaking to the Scottish Grocers’ Federation, Ms Slater said that without a positive response from Westminster, Scotland’s version of the DRS would be rendered ‘unviable’.

“The First Minister wrote to the Prime Minister last week, setting a deadline at the end of May,” said Slater.

“So, if we haven’t heard from them by the end of May, because of the concerns around the viability of the scheme going forward, we will have to make a proactive decision at that point as to whether the scheme is viable or not to move forward.

“I can’t say exactly how that’s going to fall out. We’re still working very closely with the UK Government to make that happen.”

She added: “You know, this is now at as high as you can go, this is the First Minister talking directly to the Prime Minister about this. It’s at the highest possible level. So, I’m hoping to find out urgently.”

The DRS was originally conceived as a way of increasing the number of single-use drinks bottle and cans that get recycled, rather than ending up as litter or landfill. All the UK nations are working towards introducing similar schemes, but Scotland was seeking to launch its version ahead of the curve, starting this August.

However, in the face of industry concerns that Scotland’s interpretation of the idea had been made unnecessarily painful for small businesses – and given the political opportunity of a change of First Minister – it was announced last month that the Scottish scheme would be deferred til March 2024 to allow time for industry consultation towards improvements.

Somehow, amidst all last year’s local noise about the Scottish scheme, the fact that the scheme could not go ahead without the say-so of Westminster was not to the fore – but following Ms Slater’s comments, it very much is.

Her political opponents were not slow to suggest that this new focus on Westminster’s role in the scheme’s future was a handy way for Ms Slater to ‘pass the buck’ for her scheme’s deeper failings.

Conservative MSP Maurice Golden commented: “When major retailers are calling for a UK-wide approach and smaller ones are still waiting for information about how it will work, and whether they will be compensated for the huge costs she has landed them with, she’s effectively trying to blackmail the UK Government into bailing her out.

 “The reality is that her version of DRS had to be paused because there were so many unanswered questions and legitimate concerns. She and the SNP-Green government should be accepting responsibility, making amends, and completely rethinking so that we can have a scheme that actually delivers.”

A UK government spokesman confirmed that had it received a formal request for an exemption on March 6.

“It therefore hasn’t been possible yet for us to fully assess the impacts of the exclusion request on cross-UK trade, firms and consumers. We will continue to engage with the Scottish government to realise our shared ambition to improve the environment while meeting the needs of consumers and businesses across the UK.”

Circularity Scotland, the not-for-profit company established to administer the DRS, bemoaned the ongoing uncertainty over the scheme’s future.

Chief executive David Harris said: “We have written to the prime minister and first minister to stress the growing urgency around this and make it clear that many millions of pounds and hundreds of jobs are at risk if there is further delay.

“Business and industry have come together to make this a reality, without any cost to the taxpayer. However, we now find ourselves caught in a policy vacuum which calls the very future of delivering successful deposit return schemes in the UK into question.”