The UK government has recently agreed to a temporary exclusion under the UK Internal Market Act 2020, which would enable the Scottish DRS to launch ahead of the rest of the UK. This decision has been met with mixed reactions from the industry.
According to SGF chief executive, Dr Pete Cheema OBE, Scottish Grocers’ Federation remains committed to a deposit return scheme that is fit for purpose. However, the recent decision by the UK government to allow an exemption from the UK Internal Market Act for the Scottish deposit return scheme has raised concerns.
As a result, both the Scottish and UK Governments must provide further clarity and certainty about the future implementation of the scheme. The removal of glass from the DRS has been proposed, which would simplify and streamline operational processes. Additionally, standardizing the deposit charge, bar codes, and labeling across the UK and arrangements around scheme membership would further enhance the DRS.
However, with the requirement for nationwide UK SKU’s, producers of scheme articles will need to review their decisions around range reduction for the Scottish convenience market, which will have significant implications with the time to re-implement and re-range delisted SKU’s.
According to Dr Pete Cheema OBE, “All of this will require a complete reset of the scheme. It needs replanning, refactoring, and recosting. Compensation will be required for the changes, as many businesses will have made significant investment decisions and signed up to contracted commitments such as reverse vending machines.”
The extent of the changes being put forward requires a review of the current scheme implementation date of 1 March 2024 to enable those participating in the scheme to prepare and adapt to the new requirements. This review also provides an opportunity to resolve the outstanding issues for a simpler PET plastic, aluminum, and steel can scheme.
Dr Pete Cheema OBE explains that for the Scottish DRS system to be realigned with Westminster, the UK government must pass its regulations, which has not been done to date. SGF sits on the Scottish Government’s DRS Ministerial Strategic Assurance Group and the DRS Retailers Sector Specific Working Group and also represents the largest number of return point operators.
