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==Deposit Return Scheme (Scotland)==
==Deposit Return Scheme (Scotland)==


The '''deposit-return scheme''' ('''DRS'''), is a controversial [[deposit-refund system|container return scheme]] being planned for Scotland. The scheme has been delayed several times and is now due to start in 2025 to coincide with the a [[United Kingdom]] scheme. A not-for-profit, publicly owned company, Circularity Scotland Ltd, set up to operate the scheme subsequently went into administration with the loss of 60 jobs<ref>{{cite web |title=Westminster accused of ‘destroying’ DRS as Circularity Scotland enters administration |url=https://www.thedrinksbusiness.com/2023/06/westminster-accused-of-destroying-drs-as-circularity-scotland-enters-administration/ |publisher=The Drinks Business |access-date=30 June 2023}}</ref> after the most recent delay from a August 2023 to 2025.
The '''deposit-return scheme''' ('''DRS'''), is a controversial [[deposit-refund system|container return scheme]] being planned for Scotland. The scheme has been delayed several times and is now due to start in 2025 to coincide with the a [[United Kingdom]] scheme. A not-for-profit, publicly owned company, Circularity Scotland Ltd, was set up to operate the scheme.<ref>{{cite web |title=Scottish Government Deposit Return Scheme |url=https://www.gov.scot/policies/managing-waste/deposit-return-scheme/ |website=Managing Waste |publisher=The Scottish Governement}}</ref>

The total level of investment lost as a result of the delay is estimated at £300 million. <ref>{{cite web |title=Scottish Government could face £300m compensation bill over deposit return scheme delay |url=https://www.dailyrecord.co.uk/news/politics/scottish-government-could-face-300m-30186878 |publisher=The Daily Record |access-date=30 June 2023}}</ref>


==Background==
==Background==
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The scheme would operate along the "producer pays" principle, where the producer pays the proposed deposit amount (20p) to the scheme operator, Circularity Scotland. At each point down the chain, the wholesaler, the retailer, and ultimately the consumer who buy the goods each pay the unit price plus the deposit. Every producer and retailer would also operate a return point, where the consumer would return the container and receive back the deposit. The return point operator would then request back the deposit from Circularity Scotland.
The scheme would operate along the "producer pays" principle, where the producer pays the proposed deposit amount (20p) to the scheme operator, Circularity Scotland. At each point down the chain, the wholesaler, the retailer, and ultimately the consumer who buy the goods each pay the unit price plus the deposit. Every producer and retailer would also operate a return point, where the consumer would return the container and receive back the deposit. The return point operator would then request back the deposit from Circularity Scotland.

==Controversy==

After the multiple delays to the scheme, Circularity Scotland Ltd went into administration with the loss of 60 jobs<ref>{{cite web |title=Westminster accused of ‘destroying’ DRS as Circularity Scotland enters administration |url=https://www.thedrinksbusiness.com/2023/06/westminster-accused-of-destroying-drs-as-circularity-scotland-enters-administration/ |publisher=The Drinks Business |access-date=30 June 2023}}</ref> after the most recent delay from a August 2023 to 2025.

The total level of investment lost as a result of the delay is estimated at £300 million<ref>{{cite web |title=Scottish Government could face £300m compensation bill over deposit return scheme delay |url=https://www.dailyrecord.co.uk/news/politics/scottish-government-could-face-300m-30186878 |publisher=The Daily Record |access-date=30 June 2023}}</ref> including £9 million of public money which had been invested via Scotland’s National Investment Bank. <ref>{{cite news |title=Scotland recycling failure doubles National Investment Bank losses |url=https://www.ft.com/content/bf7ae3a6-630d-4fd8-875d-91b73d6c0cf1 |publisher=The Financial Times}}</ref>. Michael Topham, [[Biffa]]'s chief executive said the company had invested £65 million in the scheme "in good faith" and that they would look to recover this investment over the coming decade. <ref>{{cite news |title=SNP’s failed bottle deposit scheme has cost £186m and taxpayers could bear brunt |url=https://www.telegraph.co.uk/news/2023/07/30/bottle-deposit-scheme/ |agency=The Dailly Telegraph}}</ref>

Scottish Ministers accused the UK Government of sabotage, showing an "utter disregard for devolution"<ref>{{cite web |title=Government accused of 'sabotage' over Scottish bottle return scheme |url=https://news.sky.com/story/government-accused-of-sabotage-over-scottish-bottle-return-scheme-12890912 |publisher=Sky News}}</ref>


==See also==
==See also==

Revision as of 12:00, 14 January 2024

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Deposit Return Scheme (Scotland)

The deposit-return scheme (DRS), is a controversial container return scheme being planned for Scotland. The scheme has been delayed several times and is now due to start in 2025 to coincide with the a United Kingdom scheme. A not-for-profit, publicly owned company, Circularity Scotland Ltd, was set up to operate the scheme.[1]

Background

The Scottish Government proposed a DRS in 2017 which would recycle single use containers made of PET and Aluminium[2]. In May 2019 the Environment Secretary Roseanna Cunningham announced that the scheme would also include glass and that the deposit would be set at 20p. All shops that sell drinks and also all producers would be required to accept returned all deposits and pay back the consumer. The scheme would be administered by a not-for-profit limited company called Circularity Scotland Ltd.

After initially being delayed because of the Covid pandemic implementation of the scheme came under the remit of the office of Minister for Green Skills, Circular Economy and Biodiversity Lorna Slater in August 2021. In November of that year Ms Slater announced a second delay so she could continue to work with producers to “agree a final timescale and clear milestones for delivery”[3]

Proposed Scheme Provisions

The scheme would operate along the "producer pays" principle, where the producer pays the proposed deposit amount (20p) to the scheme operator, Circularity Scotland. At each point down the chain, the wholesaler, the retailer, and ultimately the consumer who buy the goods each pay the unit price plus the deposit. Every producer and retailer would also operate a return point, where the consumer would return the container and receive back the deposit. The return point operator would then request back the deposit from Circularity Scotland.

Controversy

After the multiple delays to the scheme, Circularity Scotland Ltd went into administration with the loss of 60 jobs[4] after the most recent delay from a August 2023 to 2025.

The total level of investment lost as a result of the delay is estimated at £300 million[5] including £9 million of public money which had been invested via Scotland’s National Investment Bank. [6]. Michael Topham, Biffa's chief executive said the company had invested £65 million in the scheme "in good faith" and that they would look to recover this investment over the coming decade. [7]

Scottish Ministers accused the UK Government of sabotage, showing an "utter disregard for devolution"[8]

See also

References

  1. ^ "Scottish Government Deposit Return Scheme". Managing Waste. The Scottish Governement.
  2. ^ "Scotland plans deposit return scheme for bottles and cans". The Guardian. 5 September 2017.
  3. ^ "Scotland's drinks recycling scheme delayed indefinitely, less than a week after COP26". iNews. 17 November 2021.
  4. ^ "Westminster accused of 'destroying' DRS as Circularity Scotland enters administration". The Drinks Business. Retrieved 30 June 2023.
  5. ^ "Scottish Government could face £300m compensation bill over deposit return scheme delay". The Daily Record. Retrieved 30 June 2023.
  6. ^ "Scotland recycling failure doubles National Investment Bank losses". The Financial Times.
  7. ^ "SNP's failed bottle deposit scheme has cost £186m and taxpayers could bear brunt". The Dailly Telegraph.
  8. ^ "Government accused of 'sabotage' over Scottish bottle return scheme". Sky News.