Lorna Slater has announced sweeping changes to the controversial Deposit Return Scheme including exemptions for pubs, eateries and small brewers.
New measures for the troubled recycling initiative will see almost half of drinks producers escape the scheme including many in the craft drinks sector.
The Scottish Greens minister insisted her commitment to the policy remained “unwavering”.
But it comes after a further delay to the scheme was announced this week - pushing its launch back from August to next March.
Slater took aim at the UK Government over the postponement - saying their lack of engagement with the policy had made the delay “unavoidable”.
However, it follows months of controversy and anger from firms in the sector over the much-maligned plans.
The flagship SNP-Greens scheme is aimed at increasing recycling to boost the environment with a 20p deposit on single-use drinks bottles and cans - but it’s been dogged by fears over cost, particularly among small businesses.
Addressing MSPs, Slater unveiled a raft of new measures chiefly targeted at small firms - with products that sell fewer than 5000 units per year now to be excluded from the scheme.
Pubs, bars and restaurants that sell the large majority of their drinks for consumption on the premises will also be exempt from having to provide a return point under the scheme.
And miniatures - bottles that are 100ml or under - will be excluded from the scheme.
Slater said: “Scotland’s deposit return scheme will reduce litter on our streets, massively increase the recycling of drinks containers and help meet our net zero ambitions.
“However, to realise these benefits DRS needs to be delivered in a way that works for businesses, especially for small drinks producers.
“The changes I have set out will make the scheme easier for industry to deliver – especially for craft producers – while still making sure the vast majority of drinks containers are captured for recycling.”
She added: “To move forward with certainty, the UK Government must stop delaying the long overdue exclusion from the Internal Market Act.
“This damaging Act was imposed on the Scottish Parliament after Brexit without its consent and creates confusion and uncertainty for businesses."
The Greens co-chief also accused opposition politicians of “increasingly desperate attempts to undermine” the DRS.
But rivals said circular economy minister Slater had been forced to “effectively rewrite” much of the scheme and branded her speech “an exercise in blame-shifting”.
Tory MSP Maurice Golden hit out: “We had one delay, followed by another, and then this week – with Lorna Slater having lost control of the scheme – the First Minister had to step in and announce yet another delay.
“Previously, Lorna Slater said that ‘no one with any credibility’ would delay the scheme again and that to do so would be a ‘kick in the teeth to industry’.
“But the minister has made such an almighty mess of this scheme that she has now had to effectively rewrite it.
"Today’s changes are welcome, but they should have been made months ago. Businesses can’t have confidence in a scheme that sees continual delays and massive changes at the last minute.”
Liam McArthur of the Lib Dems said: “This is a remarkable statement. As an exercise in blame shifting it is ill advised and lacking in self awareness
“Over the last two years I have spoken to many businesses, not one of which has mentioned the UK Government, all of which have criticised the Scottish Government approach.”
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