Re-Turn is ‘open’ to change as businesses struggle with charges
THE company behind the can and bottle return scheme has said it is open to making changes on a ‘case-bycase basis’, after small businesses complained it was causing cashflow problems.
Re-Turn operates the State-backed recycling scheme, which has added levies of 15c or more to cans and bottles, which can be reclaimed by consumers at the point of return.
But small companies say they must pay the additional charges to Re-Turn within 30 days of sending their stock to shops, while waiting up to 100 days to be reimbursed for those fees from retailers.
The White Hag brewery, which produces craft beers including Session IPA and New England IPA, says the scheme is hitting small firms across a range of areas.
Co-founder Bob Coggins told the Irish Daily Mail: ‘We are collecting the revenue from the retailer to pass on to the Government.
‘Through Re-Turn we pay them on terms that are unrealistic. So we have to pay them on 30 days, which doesn’t work for us at all.
‘No one gets paid within 30 days, that’s just the reality of doing business. If you are asking for payment within 30 days, you are showing a very naive understanding of how retailing works and how the supply chain works.’
He said that ‘at the moment, we are probably waiting between 60 and 100 days for payment from the large retailers’, adding: ‘Paying the deposit fee to Re-Turn within 30 days is not realistic or possible. I think anyone producing under two million cans a per year in this market could be given an exemption for the first six months to invest in being prepared.
‘That will also allow credit terms to catch up.’
In response, a spokeswoman for Re-Turn said: ‘The 30 days’ notice period was set up following consultation with producers in Ireland.
‘Re-Turn is open to discussion with any producers experiencing problems with the credit terms on a case-bycase basis.’ Speaking about the scheme, she noted that on April 25, reverse vending machines facilitated over 615,000 individual transactions, and as of that date, the number of containers returned by consumers was 63.9million. In total, there have now been 21million individual transactions by consumers since the launch. Transactions are measured by the number of vouchers issued.
The spokeswoman said: ‘ReTurn began engaging with drinks producers and retailers in September 2022.
‘This collaboration has included both small and large retailers and producers, aiming to understand their challenges and determine how we can offer assistance.
‘Specifically for smaller producers and retailers, we have implemented several supportive measures. These include lowering fees for producer and product registration, and providing financial aid to retailers who invest in reverse vending machines.’
She added: ‘The Single Use Plastics (SUP) Directive is the main driver for the introduction of deposit return. Currently, approximately 40% of drinks containers, 800million, are not being recycled.
‘Ireland needs to achieve the EU separate recycling target of 90% by 2029, and by placing a deposit on each drinks container, a deposit return scheme is already a proven successful solution to achieving this target in 15 European countries.’
Since February 1, when a person buys a drink with the Re-Turn logo, they pay a small deposit in addition to the price. The containers included in the scheme are PET plastic bottles and aluminium and steel cans from 150ml to three litres. There is a deposit of 15c for containers from 150ml to 500ml inclusive, and of 25c for containers over 500ml, up to three litres.
‘A successful solution’