Humza Yousaf has said that the Scottish Government won't compensate businesses after the deposit return scheme was delayed for a fourth time.
It had been suggested that the Scottish Government could face a compensation bill of up to £300m after it was announced this week that the scheme would be delayed until 2025 at the earliest.
But the First Minister rejected this idea on Sunday morning.
The deposit return scheme (DRS) was supposed to boost recycling rates but became the centre of a bitter row between Holyrood and Westminster over how it should work.
It was announced this week the policy would not now be implemented until October 2025 at the earliest despite businesses working towards a launch date of March next year.
Shop owners then threatened legal action against the Scottish Government after being left "out of pocket" by the latest delay.
But Yousaf told the BBC's Laura Kuenssberg Show that he didn't think that the Scottish Government would have to compensate businesses.
He said: "We don't believe there's a case for the Scottish Government to need to compensate because the action we've had to take is because of that 11th hour last minute intervention from the UK government, which has meant that a Scottish scheme unfortunately isn't viable."
Yousaf also said the SNP could “make life very difficult” for Labour after the next general election if Keir Starmer does not co-operate with it.
The First Minister said a demand for a second independence referendum would be “top of the list” of his party’s requests if Labour needs help forming a government at Westminster.
The Labour leader has repeatedly said he will not do a deal with the SNP after the election.
Yousaf said the SNP will not prop up a Tory minority government, but noted minority governments often need help passing budgets.
He said: “We would never prop up a Conservative government, ever. Underline that, put that in bold.
“But, of course, if Labour do not want to co-operate with us, then we would make life very difficult for them.”
He also ruled out a suggestion from Alex Salmond that pro-independence parties should form an alliance at the general election.
Scottish Labour Net Zero spokesperson Sarah Boyack said: “From the very start, there have been serious concerns raised about the DRS and they have always fallen on deaf ears.
“Businesses have been ignored by the SNP and the Greens, and now they are being expected to foot the bill of this incredibly expensive shambles.
“The chaos and incompetence that has characterised this scheme is becoming second nature for this government.
“During this entire interview, the independence obsessed Humza Yousaf spent more time promising a referendum than he did talking about the issues with the DRS, our NHS, or the cost of living crisis.”
“The SNP must stop blaming their own failures on devolution and focus on the real issues facing Scots now.”
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