Alister Jack has denied the UK Government would be liable for paying compensation to businesses if a controversial recycling scheme is scrapped.
The Scottish Secretary insisted it would have "nothing to do" with Westminster if firms are left out of pocket as a result of the deposit return scheme (DRS) being halted.
Humza Yousaf previously claimed Tory ministers had left his government in a "really difficult position" over whether to proceed with the flagship recycling initiative, which has already been delayed twice.
The DRS would charge customers in Scotland 20p for every single-use drinks container they buy, with the deposit being returned when the empty bottle or can is recycled.
The policy is designed to boost recycling rates - but critics have repeatedly warned it could force smaller firms out of business due to huge cost increases.
The scheme could be scrapped if the UK Government does not grant Scottish ministers an exemption from Internal Market Act by the end of May.
Asked if the Scottish Government would compensate businesses who have already prepared for the scheme, Yousaf said: "If the UK Government ends up pulling the plug on the scheme, because they don't give the Internal Market Act exemption, then I wouldn't be surprised at all if companies are asking for compensation.
"And I think the UK Government would have a real challenge on their hands."
But that position was flatly rejected by Tory minister Jack today.
He said the Scottish Government had only asked for a formal exemption for the DRS in March.
Asked about the issue compensation, Jack said: "It has absolutely nothing to do with the UK Government," he told MPs.
"We were formally asked to consider this on March 6, I have asked for impact assessments and I haven't seen those yet."
He added: "I have yet to see the workings which would let me take a responsible decision on this one way or another with any confidence".
It comes as Lorna Slater met with Scottish business leaders today to update them on the scheme's roll out.
The Green minister said: “One of the main issues of concern is the UK Government continuing to drag its heels on an Internal Market Act exemption, which is creating uncertainty and confusion for all the businesses that have worked so hard to prepare for the scheme going live.
"I continue to urge the UK Government to agree the exclusion by the end of May at the latest. Doing so is absolutely essential to the successful delivery of the scheme.
"We have engaged with the UK Government in good faith on the exclusion for Scotland’s deposit return scheme for nearly two years now.
"Despite following the mutually agreed process, we have still to be given necessary assurances that this will be provided in good time."
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