The minister leading Scotland's controversial deposit return scheme says it will “absolutely” go ahead this August despite ongoing warnings from the drinks industry on its potential impact.
The scheme is designed to reduce waste and littering, but has been criticised by some business leaders who have warned that a “huge number” of smaller drinks firms could stop selling their products in Scotland.
Scottish shoppers will pay an extra 20p when buying drinks in a can or bottle, getting the money back when they return the empty container for recycling.
Circular economy minister Lorna Slater held what was described as an “urgent meeting” with small drinks firms on Friday, with the minister pledging to look at what additional support they can be given.
READ MORE: Deposit Return Scheme: Scottish Secretary calls for a rethink
Many in the drinks sector say the scheme as currently planned could see drinks firms forced out of business. An Insider.co.uk report earlier this month said some business leaders feared the scheme could create a trade barrier between Scotland and England as customers buy alcohol south of the border.
Today Chris Jones, managing director of Manchester-based Paragon Brands, said the scheme could create a “multitude of costs” for small suppliers.
Businesses could have to have different labels and barcodes for products sold in Scotland and those sold in the rest of the UK – where a separate scheme is not due to come in until 2025.
And Mr Jones, speaking on BBC Radio Scotland’s Good Morning Scotland programme, said: “I am part of a wider drinks forum group of approximately 300 smaller producers and it is fair to say there is a huge number of smaller producers who have simply taken the option to stop selling in Scotland.
“The complications and the cost and the complexity involved in setting yourself up for this scheme just mean that the commercial returns are not there.”
He said firms could decide not to trade in Scotland after the scheme comes into force on August 16, estimating there could be “somewhere in the region of 40%” fewer drinks brands available.
Ms Slater said there were “relatively small numbers of small producers who still have some concerns” about the scheme.
Producers have to sign up to the deposit return scheme before the end of February, and Ms Slater added that the Scottish Government and Circularity Scotland – who will implement the scheme – were working with these companies.
Asked if the scheme would come into force from August 16 as planned, the minister said: “Absolutely, it is all systems go for Scotland’s deposit return scheme.”
Speaking on BBC Radio Scotland, Ms Slater continued: “Our scheme is very similar to successful schemes around the world that do increase recycling but also reduce litter on our streets.
“We’ve got to do something about it and the deposit return scheme is our answer to that."
She added: “The Scottish Parliament passed the legislation on this back in 2020 and we have been working really closely with industry towards this August launch date. In fact, we already pushed it back by a year to allow businesses to recover after Covid.
“And now we have been working through concerns of industry.”
The minister said action had been taken to reduce the cost to drinks producers and that she was “working through” the concerns raised.
She added: “I am aware there are still some outstanding concerns from small producers and importers particularly, which I absolutely take seriously and we are working through solutions to these as well.
“I met with small producers on Friday and I am taking their concerns really, really seriously.
“So we are looking at what solutions we can put into place to support small producers because we really want all businesses in Scotland to be able to fully participate in this really exciting scheme.”
Environmental campaigners have also backed the scheme's August launch.
Kim Pratt of Friends of the Earth Scotland said: “Suggestions that DRS will cost consumers are irresponsible – like existing deposit return schemes in other countries, it will be simple for customers to claim their 20p deposit back from any shop participating in the scheme.”
Dr Kat Jones, director of the Association for the Protection of Rural Scotland (APRS) which has been running its Have You Got The Bottle? campaign since 2014, said the Scottish scheme had been “delayed twice in response to industry foot-dragging”.
She said: “We have seen the support among the Scottish public for deposit return since the outset of the campaign.
“This scheme works well in other countries where it has reduced the litter we see in our towns and countryside, cut carbon emissions, and resulted in savings for local authorities.
“We need industry to work with the Scottish Government in order to create a scheme that works for businesses, communities and the environment.”
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