Hospitality sector calls for deposit return scheme to be paused

A hospitality industry body is calling on all SNP leadership candidates to immediately pause the “flawed” bottle deposit return scheme and order a full review of it.

UK Hospitality Scotland said the scheme will put “unnecessary pressure” on businesses and consumers and could have an impact on trading with the rest of the UK.

The Deposit Return Scheme (DRS) is due to begin in August and will see shoppers pay an extra 20p when purchasing drinks in a can or bottle, with this deposit returned to them when they bring back the empty container for recycling.

Industry figures argue it would impose potentially fatal costs on businesses and create a trade barrier between England and Scotland, but environmental campaigners say it will cut carbon emissions and reduce litter.

Scottish Greens MSP Lorna Slater, the Scottish Government’s circular economy minister, said at the weekend that small drinks producers may be given a one-year exemption from the planned scheme.

UKHospitality Scotland executive director Leon Thompson said: “The flawed model, complexity and burdens of the scheme will put unnecessary pressure on both businesses and consumers, who are all struggling with the cost-of-living crisis.

“These cast-iron facts, alongside concerns around how it could impact trading with the rest of the UK, necessitate an immediate halt to the scheme’s introduction and I am calling on all leadership candidates to commit to pausing and then ordering a full review of this now discredited scheme.

“With all nations in the UK planning to introduce a deposit return scheme, we need to see a UK-wide scheme that works for businesses and consumers, as well as all our sustainability and net-zero goals.

“Hospitality businesses are not against a scheme, but they want one that takes account of the excellent rates of recycling across our sector and targets resources where DRS can make a difference to littering and sustainability targets.

“The current iteration does none of that which is why a full review is now essential.”

SNP leadership candidate Kate Forbes has said she would put the scheme on hold in response to a “wave of concern” from business.

Her rival, Humza Yousaf, has said he would go ahead with a similar exemption to the one being considered by Ms Slater if he becomes first minister.

Meanwhile, the Scottish Conservatives are demanding an emergency ministerial statement on Tuesday on the “cataclysmic” DRS.

They are calling for clarification setting out what qualifies as a “small producer” and whether or not there will be a grace period.

Scottish Conservative MSP Maurice Golden reiterated his call for the scheme to be paused pending an independent review of how the DRS would operate.

All relevant businesses will need to contact the scheme’s administrators, Circularity Scotland, by Tuesday to register.

Mr Golden said: “It should never have got to the stage where, on the eve of the deadline, key questions about the scheme remain unanswered – such as, will there be a grace period for small producers and, if so, what is a small producer.

“But, astonishingly, that’s where we are.

“This could be cataclysmic for the firms affected. It’s no exaggeration to say there are 24 hours to save Scottish businesses.

“That is why we must have an emergency ministerial statement tomorrow – to lift the cloud of uncertainty and fear hanging over them.”

And following reports that UK ministers are considering vetoing the scheme, the Scottish Greens have said that any attempts by the UK Government to block the DRS would damage the environment and seriously undermine devolution.