Scotland’s troubled Deposit Return Scheme faces series of roadblocks

Fate of Deposit Return Scheme (DRS) in Scotland seems to be in limbo as all three SNP leadership contenders now say the scheme will not go ahead in its present form while Westminster might refuse trading exemption, putting Scottish makers at disadvantage.

Kate Forbes and Ash Regan want it paused, while Humza Yousaf would exempt smaller firms for a year.

“We need to identify why businesses are up in arms, how to adapt the scheme… and then deliver a scheme that actually is going to achieve its aims,” reports quoted Forbes as saying.

Humza Yousaf told a media outlet that he would exclude small businesses for the first year of operation if elected first minister.

Lorna Slater, the Scottish Greens minister leading the scheme, says she is “actively considering” such a grace period for small businesses but has still urged them to sign up ahead of a deadline on Tuesday. The scheme itself is due to go live on 16 August.

Additionally, ministers in London are set to refuse permission for a trading exemption for cans and bottles from outside Scotland under the Internal Market Bill, Times reported. Under the post-Brexit Internal Market Act, goods that have been produced in, or imported into, one part of the UK and comply with relevant requirements there, can then be sold in any other part of the UK without adhering to different regulatory requirements.

However, with DRS coming into picture in Scotland with 20p-deposit part, it implies that producers from the rest of the UK would be able to sell their wares without having to add 20p on to the cost, putting Scottish firms at disadvantage.

Commenting on the reports, Scottish Green MSP Mark Ruskell said that to veto this scheme three years after it was approved by Parliament and after businesses have invested hundreds of millions of pounds would not just be bad for the environment, it would destroy jobs and be devastating for those who have invested and got ready.

“It would be a big slap in the face to the many businesses all across Scotland who have already started preparing for the Scheme, some of whom have already spent large amounts of time and money on ordering equipment and starting recruitment,” reports quoted Ruskell as saying.