A concerned consortium of trade bodies, retail and hospitality interests, wine and spirit businesses, and waste operators have written to the Welsh Government in a last-ditch attempt to stop another Deposit Return Scheme disaster.
In a letter to the First Minister, the WSTA has joined forces with UK Hospitality, British Glass, Scotch Whisky Association, National Association of Cider-Makers and other alcohol sector trade bodies to caution Welsh decision makers that they are set to career towards the same cul de sac as the failed Scottish DRS, unless urgent action is taken to remove glass in full, and appoint a Deposit Management Organisation (DMO).
The coalition represents significant users of beverage glass in the UK across all alcohol categories, with wine and spirits alone accounting for approximately 70% of glass that would fall in scope of a Welsh DRS.
According to a report filed to Companies House most of a £9 million taxpayer-funded loan given to the company charged with running the Scottish government’s failed deposit return scheme has not been recovered.*
In its letter to, newly in post, Rhun ap Iorwerth the coalition warns, “Without urgent intervention, obligated companies will be forced to reduce stock or withdraw from the Welsh market entirely. We wish to work with your government to avoid this damaging outcome.
“With less than 15 months until the scheme is due to commence, there remains no clear funding mechanism for DRS infrastructure, kerbside collection, or reprocessing, and no Deposit Management Organisation (DMO) has been appointed.”
Last month the WSTA joined a host of other impacted industry bodies at a round table in a bid to encourage Welsh Government to see sense, avoid potential scheme collapse, and avert a major shock to trade.
The meeting took place in Cardiff with the new Minister for rural resilience and sustainability together with officials and focussed on plans to include glass in DRS and to introduce a unique glass re-use scheme in Wales.
The overwhelming majority of representatives present were aligned and made it clear that the scheme, in its current form, threatens environmental goals, adds unnecessary costs to businesses, risks fraud and will result in products being pulled from shop shelves.
The WSTA made clear that arrangements for a zero-rated deposit and no mandatory scheme labelling for glass between 2027-2031, offered no practical transition window for the industry. The Scheme as planned will in fact undermine funding for glass collection as identical containers will need to be differentiated from those subject to EPR in the rest of the UK, from October 2027.
Frustrated wine and spirit businesses have warned that the scheme will create a barrier to trade within the UK, if Wales includes glass in DRS while the rest of the UK will not.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said: “The WSTA, along with an overwhelmingly aligned food and drinks sector, have repeatedly tried explaining why a scheme without funding and infrastructure is doomed to fail.
"Unfortunately, politics has once again been put in front of common sense and rather than work with industry to make the scheme a success, the blinkers are on and we are heading for yet another fall off the precipice. It appears that no one has learnt lessons from the failed Scottish DRS, and Welsh DRS is headed down the same disastrous path.
"We have a very short window of time for the new Government to work with industry to develop a scheme that can be delivered and that supports businesses, consumers and the environment.”
The WSTA warns that the Welsh Government’s environmental claims for the scheme are losing credibility: funding for kerbside bins and return points has not been agreed and the scheme incentivises a move away from glass. This will increase emissions, and the glass collection target is only 70% in 2028, a 20% fall from the current standard.
Moreover, non-drinks containers such as glass jars are set continue to be collected at the kerbside, creating greater inefficiency and costs.
Some brands have revealed that the inclusion of glass would lead to withdrawal from, or significant reduction of product lines sold in Wales.