Humza Yousaf will allow businesses who do not register with the deposit return scheme (DRS) before the midnight deadline to take part, if he becomes first minister – leaving him at odds with his own government.
Greens Circular Economy Minister Lorna Slater has refused to further delay the key Scottish Government policy, warning it would call her “credibility” into question.
But Mr Yousaf, the Health Secretary, who is vying to become the next first minister, said that he will take a “flexible approach” and said he would allow businesses who do not sign up in time to continue selling their products in Scotland.
But Nicola Sturgeon has today made a last-gasp appeal for businesses to sign up to the scheme.
The First Minister said she “would strongly encourage drinks producers to register” with Circularity Scotland.
She added: “This is a vital step to ensuring everyone who needs to be is compliant with the regulations and is the best way to make sure that their products can be sold without issue in Scotland.”
Businesses have warned that signing up to the producer agreement with Circularity Scotland could leave them liable for fines if the scheme is further delayed past August 16.
But Ms Sturgeon said: “Sepa has made clear that they will take a proportionate approach to compliance.
“They will work with businesses to help them get ready – advice and guidance, not fines, will be the first step for any business that is clearly taking action but struggling to meet their obligations.”
It comes after Finance and Economy Secretary Kate Forbes, who is also hoping to become first minister, warned yesterday that without the policy being paused, it would wreck “economic carnage” to businesses.
Asked by journalists whether he would allow ban businesses who do not sign up to the scheme from selling products in Scotland, Mr Yousaf said: “No.”
He added: “I'm willing to take a flexible approach to the DRS scheme.
“I understand there are concerns particularly on the small producers."
Asked whether he and other SNP leadership candidates, who have all ciriticsed the policy, were undermining Ms Slater, Mr Yosuaf said he was “certainly not”.
He added: “I’m very keen to work with Lorna Slater and the Greens."
But he added: "I think we have to be credible with the solutions we put forward."
Speaking in Holyrood, Ms Slater said: “For the launch of a scheme of this complexity that every single person in Scotland will participate in isn't easy, but it is significant and it is transformational.
“I am grateful to businesses of all sizes that are continuing to make good progress as they prepare for launch in August of this year.”
Tory MSP Maurice Golden said the response from the Scottish Government has been “appalling and totally unacceptable”.
He added: “Scottish businesses must be tearing their hair out at the uncertainty the Scottish Government’s incompetence is causing.
“Just hours before the deadline for them to either sign up to a scheme that could bankrupt them, or face being unable to trade in Scotland, key questions remain unanswered.
“We have Humza Yousaf telling journalists at a leadership campaign event that he’s relaxed about firms not signing up before the deadline; this afternoon, we have the First Minister pleading, via a press release, for businesses to sign up in time.
“If that wasn’t confusing enough, enter Lorna Slater, stage left, to again fail to provide clarity on key aspects of her own policy and its repercussions on drinks producers, wholesalers and the hospitality industry.
“More than 500 businesses signed an open letter to the minister calling for the scheme to be paused. They are staring ruin in the face whilst Lorna Slater seems to be closing her eyes, crossing her fingers and hoping for the best.
“With just hours left until registration closes, she still refuses to see sense and extend registration to avoid catastrophe.”
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