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Daily Record
Daily Record
Politics
Paul Hutcheon

Tennent's lager owner issues warning over Tory changes to deposit return scheme

Tory plans to exclude glass from Holyrood’s deposit return scheme are threatening Scotland’s favourite lager.

The owner of Tennent’s has warned the UK Government proposal would undermine their business and put jobs at risk. Scotland’s DRS is due to begin next year, but the scheme needs the Conservative Government to grant an exemption from UK-wide trade legislation.

The Tory administration agreed a partial exemption but only if the Scottish scheme excludes glass and aligns with the rest of the UK.

In a letter to First Minister Humza Yousaf and a Holyrood committee, C&C Group hit out at the UK Government intervention. Andrea Pozzi, GB Managing Director, wrote that his company had “serious concerns” about the plan.

He wrote: “The announcement further increases the already huge uncertainty around the scheme for the drinks industry, customers, and consumers and, if implemented, would be a fundamental change to the scheme.”

Pozzi warned of the “serious implications” for his firm and added: “By removing glass from a Scottish DRS, Tennent’s, as a product sold in can in the Scottish off-trade, would be at a significant competitive disadvantage, undermining our business and therefore placing jobs and investment at risk. The removal of glass will also result in a material reduction of consumer choice.”

C&C’s position is for the introduction of a UK-wide DRS scheme brought in at the same time across all four nations. The brewer and distributor added that a Scottish-only scheme should include glass, PET and aluminium.

Yousaf has criticised the UK Government and claimed the Scottish scheme passed by MSPs could now be scrapped. At an event yesterday, Yousaf excluding glass could be at the “severe detriment” to Scottish brands like Irn-Bru and Tennent’s.

He said: “The choice that we are faced with is either to concede to the UK Government’s unreasonable demands as part of their attempt not just to torpedo the DRS, but frankly to undermine devolution. That would be to exclude glass, but to do so may well be at the severe detriment of businesses in Scotland.”

Under the Holyrood plan, shoppers would pay a 20p deposit every time they buy a drink in a can or bottle, with that money refunded to them when the empty containers are returned for recycling.

The Tennent’s website says of the iconic brand: “Tennent's Lager is more than just a great pint - it's a national institution and firm favourite. Scotland's best-selling beer.”

Scottish Greens MSP Mark Ruskell said: “Tennent’s really have got the Tory party down to a T. While they are trying to kick the DRS can down the road, iconic Scottish brands understandably want to be able to do the right thing. Glass should be a part of it.

“This could have been sorted out if the UK Government had granted the Internal Market Act exemption as was requested. It is now for them to explain to business why they have opted to treat Scotland with such contempt.”

Circular Economy Minister Lorna Slater said: “We have been in detailed conversations with producers, retailers and the hospitality sector since the UK Government’s 11th hour decision last Friday. This letter shows the recklessness of the UK Government's refusal to allow Scotland to include glass in our deposit return scheme.

“Including plastic, metal and glass is best for the environment and maximises the economic benefits, too. Being forced by the UK Government to remove glass from our scheme risks significant knock-on effects for businesses, not least for those like Tennent’s that are largely can-based.

“There is still time for the UK Government to reverse its last-minute decision and enable Scotland to go ahead with the scheme that our parliament voted for – including glass.”

Labour MSP Boyack said: “Producers, businesses and consumers need a viable deposit return scheme that they have confidence in, however, Lorna Slater has failed to deliver this.

"Instead of picking a constitutional fight Scotland’s two Governments need to work together to deliver a viable Deposit Return Scheme that works for iconic Scottish drinks like Tennents.”

A UK government spokesperson said: “The Government remains unwavering in its commitment to improving the environment, while also upholding the UK’s internal market.

“The drinks industry has raised concerns about the Scottish Government’s Deposit Return Scheme differing from plans in the rest of the UK, resulting in the Scottish Government reviewing and pausing their Scheme earlier this year.

“We have listened to these concerns and that is why we have accepted the Scottish Government’s request for a UK Internal Market (UKIM) exclusion on a temporary and limited basis to ensure the Scottish Government’s scheme aligns with planned schemes for the rest of the UK.

“Deposit Return Schemes need to be consistent across the UK and this is the best way to provide a simple and effective system. A system with the same rules for the whole UK will increase recycling collection rates and reduce litter - as well as minimise disruption to the drinks industry and ensure simplicity for consumers."

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