First Minister Humza Yousaf ditches Greens' deposit return scheme until next year
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The Greens’ deposit return scheme is to be recycled next year after First Minister Humza Yousaf recognised the concerns of business who feared it would be disastrous for trade.
Just before Mr Yousaf spoke, Inverness and Nairn MSP Fergus Ewing lambasted the Greens Lorna Slater, the Minister for Circular Economy saying the scheme amounted to a “green Poll Tax".
He said: “Last week in a letter to the First Minister, the Federation of Small Businesses, the Scotch Whisky Association, the CBI and many other business organisations, virtually all of them, argued that the DRS would increase prices, consumer prices above the 20P hitting the poorest hardest.
“Even David Harris, the boss of Circulatory Scotland, paid 300 grand a year admits that that is the case, does the minister agree with the boss of our own agency?And if so, why is she so intent as a Green Party representative on imposing a green Poll Tax?”
Ms Slater only said Circularity Scotland is a private not-for-profit company and that the deposit return scheme was passed by the parliament.
Then just a few minutes later, Mr Yousaf junked it until next in part of a bid to reset ties with the business community, alongside another welcome move by withdrawing the consultation on alcohol advertising.
Responding to businesses which called for a reset, he said three policy changes would address that in part.
He said: "The first related to the deposit return scheme as a way to increase recycling, to reduce litter on our streets and our beaches and help achieve our next zero ambitions.
"But we recognise the uncertainty that continues to be created as a result, of course, of the UK government delaying the decision to exclude the scheme from the Internal Market Act, we had hoped for a decision this week.
"At the same time I and the circular economy minister have heard the concerns of business, particularly about the scheme’s launch this August so as a result we will now delay the launch of the scheme until March 1, 2024.
"This provides 10 months for businesses to get ready and we will use that additional time to work with businesses and Circularity Scotland to address the concerns with the scheme and ensure and successful launch next year.
"We've also developed a package of measures to simplify and de-risk the scheme and to support small businesses and hospitality industry."
The SIBA (The Society of Scottish Independent Brewers) has welcomed the announcement saying it 'gives small breweries time to at least catch their breath' and begin to prepare for its introduction.
Jamie Delap, SIBA Scotland Director, said: "While we fully support the principle of DRS, we have highlighted for many months the extreme complexity of the scheme in Scotland which many small producers do not have the resources or finances to prepare for.
"Many small breweries have been anxious about the impact it will have on their businesses as they face the cost of living crisis, energy price increases and the lingering effects of the pandemic.
"Last year we called on the Scottish Government, in partnership with others, for them to do three things – reduce the costs to small businesses, amend the terms of the scheme so small producers weren't required to take on extra debt and to delay the start of the scheme in order to allow small producers time to implement the scheme successfully.
"It is welcome that they have listened to all three and under the new First Minister now delayed it.
"Now is the opportunity for the Scottish Government and Circularity Scotland to work in partnership with small businesses to come up with real solutions that work for everyone not just the largest businesses and we look forward to working with them to address the other barriers to a successful launch of the DRS.”
