Scottish businesses face deadline for bottle return scheme

The Scottish government has been urged to issue an emergency statement on the bottle return scheme as a key deadline looms.

Producers risk being banned from selling their products in Scotland if they fail to sign up by Tuesday evening.

The Scottish Tories have called for a statement to clear up "unanswered" questions about the scheme.

The government said it would take a "pragmatic approach to implementation".

The deposit return scheme (DRS), which is set to begin on 16 August, will introduce additional 20p charges on drinks in cans or bottles, with the deposit returned when they are brought back for recycling.

Producers, which will have a legal responsibility for the collection and management of drinks containers covered by the scheme, have until midnight on Tuesday to sign up.

But industry figures have warned it could impose potentially catastrophic costs on their businesses.

Circular Economy Minister Lorna Slater has said she is "actively considering" a one-year grace period for smaller businesses but has still urged them to register.

All three SNP contenders to replace Nicola Sturgeon as first minister have raised concerns about the scheme in its current form.

The Scottish Conservatives have urged Ms Slater to halt the scheme pending an independent inquiry.

The party's chief whip, Alexander Burnett, has written to the Scottish government's business manager, George Adam, requesting an emergency ministerial statement.

Scottish Conservative MSP Maurice Golden said: "It should never have got to the stage where, on the eve of the deadline, key questions about the scheme remain unanswered - such as, will there be a grace period for small producers and, if so, what is a 'small producer'? But, astonishingly, that's where we are.

"This could be cataclysmic for the firms affected. It's no exaggeration to say there are 24 hours to save Scottish businesses."

He added: "We all support the principle behind the DRS but in its current form it's not fit for purpose and risks signalling the death knell for Scottish businesses, which face being burdened with unsustainable costs."

When the SNP and the Scottish Greens struck a deal to share power in August 2021, the two parties papered over some fundamental differences.

Excluded from their agreement was the concept of "economic growth" which the SNP has placed at the heart of its prospectus for independence but which the Greens have decried as "a relic of outdated economic thinking that is driving the destruction of the planet".

Now these two incompatible philosophies have come together with all the grace of a bin full of glass bottles being emptied into the back of a recycling lorry.

The Greens see the deposit return scheme as a means to shift responsibility for the consequences of capitalism from the state to business, from taxpayers to shareholders, from consumers to the owners of capital.

But even if you support that approach — and many in the SNP do not — the project has also run into a string of practical problems with confusion and anger about the costs for small firms in particular.

Plus there is the potential impact on cross-border trade with England, both now and if different return schemes are eventually introduced elsewhere in the UK.

That has provoked another constitutional row, with the UK government making noises about blocking the project.

It may not need to. All three SNP leadership contenders have, to some extent, trashed the original plan.

Kate Forbes says it could cause "economic carnage"; Ash Regan wants it to be redesigned or scrapped; Humza Yousaf supports a grace period for small firms)

Which means that, one way or the other, the deposit return scheme as originally designed looks set for the bin — the question is: will the co-operation agreement between the SNP and Greens end up there with it?

Circularity Scotland, which is responsible for running the scheme, recently announced £22m of support to remove upfront charges from some companies.

However, industry body UKHospitality Scotland has also backed an independent review.

Executive director Leon Thompson said: "The flawed model, complexity and burdens of the scheme will put unnecessary pressure on both businesses and consumers, who are all struggling with the cost-of-living crisis."

He continued: "Hospitality businesses are not against a scheme, but they want one that takes account of the excellent rates of recycling across our sector and targets resources where DRS can make a difference to littering and sustainability targets.

"The current iteration does none of that which is why a full review is now essential."

Ms Slater, speaking on the BBC's The Sunday Show, urged business that were unsure whether they qualified as small producers to contact Circularity Scotland.

"Industry momentum is such that we have great momentum building toward the August 16 launch," she added.

"This scheme is so important for how we reach net-zero in Scotland. It's so important for how we clean up our parks, get that broken glass off of our streets and I know businesses are committed to making it work, as am I."

Scottish Secretary Alister Jack has hinted that the UK government might not agree to a UK Internal Market Act exemption for the scheme.

The UK government said that following any decision it would be up to the Scottish government whether to proceed with the scheme or not.

A UK government spokesman said: "The Scottish secretary has urged the Scottish government to pause its scheme and work with the UK government on a solution that works for both Scotland and the whole of the UK.

"That would be the best way to maximise environmental benefits, minimise disruption to the drinks industry and ensure choice for consumers."

A Scottish government spokesman said similar initiatives were common in European countries and have been effective.

"The regulations that established Scotland's deposit return scheme were based on these schemes and passed with cross-party support in 2020," he said.

"Any producers with concerns about meeting their obligations should get in contact with the relevant organisations.

"We have always said we will take a pragmatic approach to implementation, to ensure that as many businesses as possible can be part of Scotland's Deposit Return Scheme and can continue to sell in Scotland after 16 August."