SCOTLAND’s Deposit Return Scheme is absolutely viable without glass, the Chief Executive of Circularity Scotland (CSL) has insisted.
David Harris said the Scottish DRS would still be one of the “most ambitious deposit return scheme startups attempted so far.”
Scotland's troubled recycling programme was supposed to launch in August but has now been twice delayed and is currently planned to launch next year.
It would see each single-use item carry a levy of 20p which is then refunded when the empty container is returned to retailers.
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Last weekend, the UK Government made clear the Scottish Government’s DRS would only be given the necessary exemption to the UK Internal Market Act if they made a number of substantial changes.
They included agreeing to standardise the deposit charge and labelling with schemes launching across the rest of the UK in 2025.
Crucially, they also said glass should not be part of the DRS.
Last night, the UK Government rejected Humza Yousaf’s calls for a rethink on that exclusion, saying it was needed to ensure “simplicity and interoperability”.
In his letter over the weekend, the First Minister told Rishi Sunak that not including glass would put the DRS in “grave danger”.
He repeated his comments on Monday, telling journalists that it was “extremely difficult” to see the Scottish scheme going ahead without glass.
“It’s extremely difficult because not only do you look at whether or not CSL are able to get the drawdown of funding, we have to look at what the impact is going to be on Scottish businesses, on their jobs, on their investment, on the price of their product.”
Last week the C&C group who brew Tennent’s warned that a scheme without glass would leave them at a competitive disadvantage, as they sell most of their drinks in cans.
While their drinkers would need to pay an extra 20p per tin, brewers selling in bottles would be able to keep costs down for their consumers.
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Mr Harris told the BBC Radio 4 Today programme that he believed the costs could be mitigated: “We've obviously had to respond to this very quickly - it's only just over a week since we found that glass was being taken out scheme - but we can certainly see that we are able to mitigate a great many of the costs that have already been incurred to process glass.
“We're at a very advanced state of readiness, much of the infrastructure has already been installed to handle glass.
“But with the steps we've identified that we can take, we can largely mitigate the cost impact for the producers who remain impacted by the scheme.
“So yes, our view is it very much remains a viable scheme.”
He said there would be a “small cost increase” to the producers, but he said the body was looking to try and “identify ways to take that cost further out.”
“We're at a stage now where hundreds of millions of pounds have been invested by ourselves, our business partners, the retailers and the producers in getting ready for this scheme to go live.
“We were created by producers to meet their obligations, we're not government, we’re the body of the producers.
“Jobs have been created, many hundreds more jobs will be created over the coming months. And Scotland without glass will remain one of the most ambitious deposit return scheme startups attempted so far.
“There’s 50 schemes running very successfully in the world. Many of those run without glass. So we absolutely see the right decision here being, protect that investment, protect the jobs and proceed with the scheme as planned.”
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Meanwhile, Biffa, the logistics partner for the scheme, has also urged the First Minister to push on.
In a letter to Mr Yousaf, Chief Executive Michael Topham said: “Any decision to cancel or significantly delay the scheme beyond March 2024 sends a seismic and detrimental signal to all those businesses that are in principle willing to commit resources into helping the Scottish Government deliver on its ambitions, completely undermining its position as a legislator that can be relied upon.
“In my view the ramifications of this will be significant.
“Not only in terms of the urgent and immediate need for many businesses, who have invested in the scheme in good faith, to protect their financial position, but also in terms of attracting long-term outside investment in Scottish green infrastructure and related schemes in the future.”
A decision is expected later today after Mr Yousaf has discussed the letter from the UK Government with his cabinet.
The letter, which was signed by Michael Gove, Alister Jack, and Therese Coffey said the limited exemption granted provided a “practical solution to proceed with the Scottish Government’s scheme, balanced with the need to uphold the UK’s internal market (UKIM), ensuring a level playing field for all British businesses and consumers as we maximise the benefits of aligned schemes across the UK in the future”.
The three UK Government ministers told Mr Yousaf that the “exclusion of glass also ensures consumer choice is not restricted in Scotland”, and that there was a risk some producers would have chosen not to sell their products north of the border.
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