Deposit Return Scheme doubts remain as registration date passes

Calls to delay the Deposit Return Scheme (DRS) have intensified this week as the deadline for businesses to register for the scheme passes, writes Finn Nixon.

The scheme’s current start date is Wednesday August 16, but Scottish producers, retailers and hospitality operators were told by the scheme administrator, Circularity Scotland, that they had to be registered with SEPA by Tuesday February 28.

All three SNP leadership candidates have called for changes to the scheme amid growing calls for it to be delayed.

Humza Yousaf said he would exclude small businesses from DRS for its first year if he became First Minister and Ash Regan would consider scrapping the scheme.

Leadership rival and MSP for Skye, Lochaber and Badenoch, Kate Forbes has called for it to be paused. Referencing the Knoydart Brewery near Mallaig, she said: “You can only get there by ferry and there is no reverse vending machine at all. To expect people to travel over half an hour by boat to recycle is clearly not workable.

“The implementation of DRS needs to be paused and sense-checked, and that’s what I’ll do if I’m elected as leader. I believe in the principle, but the execution has to work too.”

The Times newspaper reported that Westminster could intervene to stop the scheme, while Lord Foulkes of Cumnock urged the UK Government to block the DRS in the House of Lords.

In response to the potential for UK Government intervention, a spokesperson 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.”

This partially stems from suggestions the scheme may not be granted an exemption from the UK Internal Market Act (IMA), but in a February 9 letter Scottish Greens co-leader, Lorna Slater said: “The formal process for excluding the DRS regulations from the IMA is well under way.”

Last week Circularity Scotland (CS) announced funding of £22 million would help small businesses prepare for the scheme, while firms selling less than three million units per year would not be charged for deposits and fees for its first month. Chief executive of CS David Harris said: “We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.”

However, as The Oban Times has previously reported, many businesses in the West Highlands have concerns about the complexity of the scheme, its impact and its timescale. This was reflected in an open letter calling for it to be deferred, which was signed by 500 business leaders.

Tom Hayward, a partner at the Argyll House Hotel, said: “A retailer I know is annoyed at the amount of documentation required for a very small shop. There are concerns about the onerous requirements of registering. Some [businesses] are only vaguely aware of the scheme, even at this late date. A café owner I spoke to was reluctant to take part.”

However, circularity economy campaigner at Friends of the Earth Scotland, Kim Pratt said: “To undo the momentum would be counterproductive for producers and retailers planning for an August introduction, as well as risk further environmental pollution.”

‘To expect people to travel by boat to recycle is not workable.’