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The controversial Deposit Return Scheme (DRS) has been postponed until March next year, the prime minister said. Making the announcement while outlining his priorities for the government, Humza Yousaf said the change was part of a "reset" between government and business. The scheme, which would require customers to pay a 20p deposit on canned and bottled drinks to be refunded when the containers are returned, has come under heavy criticism in recent months.
We will now postpone the launch of the program to March 1, 2024
The scheme will require a UK-wide exemption from the Internal Market Act, granted by Westminster, to go ahead given the potential implications in other parts of the UK.
But the first minister said no such decision would be made and the Scottish secretary, Alister Jack, welcomed the decision to delay it.
Speaking at Holyrood, Mr Yousaf said: “I remain committed to this program as a way to increase recycling, reduce waste and help achieve our net zero ambitions.
“But we recognize the uncertainty that continues to be created following the UK Government's delay in deciding to exclude the scheme from the Internal Market Act. We expected that decision this week, but it did not come.
“At the same time, myself, and the Circular Economy Minister, have listened to concerns from companies, particularly about preparing the program for an August launch. As a result, we will now postpone the launch of the program until March 1, 2024. This gives companies 10 months to prepare.
"We will use this additional time to work with the companies and Circularity Scotland to address concerns about the program and ensure a successful launch next year."
A set of measures would also be put in place, Yousaf said, to "simplify and reduce the risks" of the scheme.
Mr Jack said: “I welcome the First Minister's decision to suspend the Scottish Government's deposit return scheme, given widespread business concerns.
"Now we have the opportunity to continue to work together on solutions that benefit consumers and businesses across the UK, while helping to achieve our shared ambition to improve the environment."
The announcement came minutes after circular economy minister Lorna Slater answered a topical question about the future of the scheme, where former Scottish government minister Fergus Ewing described the initiative as a "green tax".
Ewing, who has become a fierce critic of the government, particularly over its power-sharing deal with the Greens, said business organizations had written to the Prime Minister saying the DRS would increase prices for consumers, which had previously been accepted by the boss. of the company in charge of executing the plan.
"Even David Harris, the boss of (Circularity Scotland Limited), which was paying £300,000 a year, admits that's the case," he said.
“Does the minister agree with the head of her own agency? And if so, why are you so determined, as a representative of the Green Party, to impose, at the height of the cost of living crisis, price increases on the poorest in Scotland, a kind of Green poll tax? ? »
Responding to the charge, Ms Slater said: 'I will remind the member that Circularity Scotland is a private, not-for-profit company and not a Scottish government agency.
"And I will also remind the parliamentarian that the regulations for the deposit system have been approved by this parliament and we are implementing those regulations."
Speaking after the Prime Minister's statement at Holyrood, Ms Slater dismissed the UK Government's claims that there had been no formal application for exemption from the Internal Market Act.
"That is not the case at all," he told reporters.
"There are formal processes involved in the frameworks by which governments work together and the UK government has agreed that at every stage we have followed the process exactly."
Slater is expected to make a statement to Parliament on Thursday about the scheme, likely to provide more details on the delay.
The Federation of Small Businesses (FSB) welcomed the delay, but stressed the importance of using time to fine-tune the scheme.
Andrew McRae, the body's chairman of Scottish policy, said: "It is essential that the Scottish government now take advantage of this pause and engage in a meaningful conversation with business to understand and address their concerns.
"Only then can the DRS be delivered in a way that works."
That sentiment was echoed by Scottish Retail Consortium director David Lonsdale, who said the break must have a "purpose."
But the British Soft Drinks Association, which represents some of the country's biggest drinks companies, said it was "disappointed" by the delay.
Chief Executive Gavin Partington said: "Our members are committed to the introduction of deposit systems and have invested several years and millions of pounds in their planned launch in Scotland."
He added: "Further delay now leaves the Scottish scheme in a precarious position and we will look to the Scottish government to protect the industry's considerable investment to date."
PA wire
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