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Insider UK
National
Lucinda Cameron, PA Scotland & Alistair Houghton

Deposit Return Scheme: Scottish Secretary calls for a rethink on controversial plans

Scottish Secretary Alister Jack says the Scottish Government should think again over its controversial deposit return scheme that has been criticised by many in the nation's drinks industry.

The scheme, set to start in August, will see shoppers pay an extra 20p when buying drinks in cans or bottles. That deposit will be returned when they bring back the empty containers for recycling.

The scheme has been designed to reduce waste and littering. But - as Insider.co.uk warned in a special report earlier this month - people in the drinks sector have warned that the scheme as currently planned could hurt small businesses and create a trade barrier between Scotland and England as customers buy alcohol south of the border.

READ MORE: Drinks industry 'in crisis mode' over DRS implementation and alcohol promotion ban plan

Mr Jack said it is “not too late to think again” and said an alternative UK wide system could cause less disruption to the industry while still bringing environmental benefits.

Speaking to the Scottish Mail on Sunday newspaper, Mr Jack said: “The introduction of a deposit return scheme is a challenging and complex piece of work.

“The last thing we want to do is rush into this and cause unnecessary difficulties for businesses in Scotland, particularly when many are still recovering from the effects of the Covid pandemic and are having to deal with increased costs due to the war in Ukraine.

“It is not too late to think again and, so, I am calling on the Scottish Government to pause its scheme and work with us to design a system that works for the whole UK.

“I think we should be working to create a UK-wide system because that is the best way to maximise environmental benefits, minimise disruption to the drinks industry and ensure choice for consumers.”

Last week, former rural economy and tourism secretary Fergus Ewing said the deposit return scheme was "fatally flawed" and that businesses in the drinks sector are “in a state of fear and even despair” about the initiative.

He said some 600 drinks producers have raised concerns about the impact on their businesses - and whether their companies could survive the scheme's introduction.

Last November, hundreds of leading figures from the food, drink and hospitality secto r signed a letter to circular economy minister Lorna Slater asking for the scheme to be paused and revised.

Ms Slater said: “We must take bold and ambitious action to tackle the climate emergency. Scotland’s deposit return scheme will be a major part of our efforts to reduce littering, cut emissions, and build a more circular economy when it goes live on August 16 this year.

“Similar schemes are common in other European countries and have been shown to be very effective.

“We understand that this is a big change, especially for smaller businesses, and have already announced changes that directly address issues raised by industry.

“We will continue to listen to the concerns of small producers and will consider if there is any further action we can take to support them ahead of the scheme going live.

“Circularity Scotland is actively engaging with businesses across Scotland to help them prepare for the introduction of the scheme and we would encourage all producers with queries about how the scheme will work to contact them.

“The formal process for excluding the deposit return scheme regulations from the Internal Market Act is well underway. This is the same process we went through to protect Scotland’s ban on many single-use plastic products.

“We expect a decision from the UK Government as soon as possible given that this is what is needed to give industry absolute clarity.”

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