Pause deposit return scheme or face business ‘Armageddon’, warn Tories

Businesses could fold if the deposit return scheme is brought in by Holyrood in the summer, the Scottish Conservatives have warned, as the party urged SNP backbenchers to “prevent Armageddon” and back a bid to pause its introduction.

The scheme has attracted anger from industry figures, who have said it could impose potentially fatal costs on their business and create a trade barrier between England and Scotland, but campaigners in favour have said it could cut carbon emissions and reduce litter.

Conservative MSP Maurice Golden said, with the battle to succeed Nicola Sturgeon under way, it was the “perfect time for SNP backbenchers to do the right thing and send a clear message to the leadership contenders that the shambolic deposit return scheme is not fit for purpose”.

His party will use the opposition business slot in the Scottish Parliament on Wednesday to urge MSPs to back their motion to pause the scheme’s introduction pending an independent review.

Mr Golden said that businesses were “terrified” and that the current plans would “make many firms unviable and cost thousands of jobs, as well as removing choice from consumers and driving up prices during a cost-of-living crisis”.

Shoppers will pay a 20p deposit when buying a canned or bottled drink and will have the money refunded to them when they take the empty container back for recycling under the scheme.

Every business operating in Scotland which sells canned or bottled drink would be required to introduce a takeback system.

Spearheaded by Lorna Slater, junior minister and co-leader of the Scottish Greens, the deposit return scheme is set be introduced from August 16.

But Mr Golden, who is convener of the cross party group on the circular economy, said the warnings from firms north of the border “could not be more stark” and the scheme “could force them out of business”.

“MSPs from all parties, but especially the SNP, have the chance to prevent Armageddon by supporting our motion for the scheme to be paused pending an independent review,” he said.

Irn-Bru maker AG Barr said in January the scheme could affect consumer buying behaviour, with the move likely to push up drink prices.

Manufacturers could have to have different labels and barcodes for products sold in Scotland and those sold in the rest of the UK – where a separate scheme is not due to come in until 2025.

And smaller producers have warned they have taken the decision to stop selling in Scotland because of the scheme.

Ms Slater said last week that the scheme would “absolutely” go ahead in August, and it was “all systems go” for the initiative.

But Mr Golden said: “Despite being years in the planning, we now have six months to go and a policy that is totally ill-equipped, poorly planned and will end up causing more harm than good. Yet Lorna Slater ploughed on regardless.”

He added there was “still no clarity on how much of it will work” and that businesses and waste management experts had called for 18 months notice “but with less than six months to go many details are still not forthcoming”.

A successful scheme “could have a positive impact on business and the environment,” he said, but currently “this one is assisting neither”.

Scottish Greens environment spokesperson Mark Ruskell said the Scottish Tory resistance to the scheme shows they are “anti-planet”.

He said a successful scheme “has the potential to completely reset Scotland’s relationship with tackling litter as part of a circular economy”.

“That is habit-forming for society and, as we have seen in other countries, it is completely workable,” the MSP for Mid-Scotland and Fife said.

“It is good for our environment and for the many businesses who will want to play a responsible role as part of the solution.

“Which is why the almost hysterical misinformation emanating from the Tories on the subject is more akin to the stuff we’d see in a movie such as Don’t Look Up than it is from any serious politician. It is desperate stuff.

“It goes to further demonstrate that the party of fossil fuels remains anti-climate, anti-nature and devoid of common sense when, in fact, they should be encouraging their colleagues at Westminster to follow Scotland’s lead.”

A Scottish Government spokesperson said: “We understand that this is a big change, especially for smaller businesses, and Scottish ministers continue to work with affected businesses to address outstanding concerns and ensure the scheme launches successfully.

“We have always said that we are committed to a pragmatic approach to implementation, and encourage those with concerns to raise them constructively.”