Business leaders have united to urge Humza Yousaf to halt the introduction of Scotland’s Deposit Return Scheme (DRS), with the First Minister being warned that without “decisive action being taken now, the scheme as it currently stands will fail”.
That is the message from groups such as CBI Scotland, the Federation of Small Businesses Scotland, the Scottish Chambers of Commerce and others.
They have written to Yousaf to raise concerns about the scheme, which is due to come into force on 16 August.
The scheme will see shoppers pay a 20p deposit every time they buy a drink in a bottle or can, with the money returned to them when they bring the empty containers back for recycling.
Environmental campaigners and the Scottish Government believe the scheme will boost recycling and reduce litter.
Producers who have not registered for the scheme will be unable to sell their products in Scotland, while business leaders insist DRS is “not fit for purpose”.
In the letter to the First Minister, they said that with just 13 weeks remaining until DRS goes live, “the challenge facing businesses is stark”.
They warned Yousaf: “Time is running out, we urge you to commit to review and delay DRS until a workable scheme has been agreed by all facets of industry.”
It has also been signed by the leaders of the Scottish Wholesale Association, the Scottish Tourism Alliance, the Wine and Spirits Trade Association, the Scotch Whisky Association, the Society of Independent Brewers and UK Hospitality, highlighting the depths of concern that exist about DRS.
During the SNP leadership election campaign, Yousaf pledged a year’s grace period for small firms, but after he became First Minister it emerged he was considering pausing the introduction of the scheme.
His spokesman said at the time: “It’s one of the things he’s considering early on, now that he’s in post.”
Claiming that “thousands of businesses” have raised concerns, the groups said they had hoped for a “swift and considered response” from the First Minister.
In their letter, they told him that if DRS is introduced as planned, without any changes being made, “livelihoods are at risk, consumers will be hit hard, and our economy will pay a heavy price for a scheme that is not fit for purpose”.
The groups insisted that businesses “all want to play their part in improving recycling rates, and moving towards greater sustainability”.
But they said that while DRS has been hailed as an “industry-led scheme”, firms have not been involved in decisions such as having a standalone Scottish scheme or the inclusion of glass bottles.
The “complexity” of the Scottish scheme “will result in increased prices and reduced choice for consumers”, they warned the First Minister.
As a result, they stated: “Smaller businesses will fold, and others will choose not to supply Scotland.”
The business leaders called on Yousaf and the Scottish Government to work with them to “help avoid entirely preventable economic damage which will hit all parts of the supply chain, but will hit small businesses and the poorest consumers the most”.
A Scottish Government spokesperson responded: “We are committed to introducing this important scheme, which will be a major part of our efforts to reduce litter, cut emissions and increase recycling.
“Industry has made welcome progress in preparing for the scheme and we recognise that challenges remain.
“We are listening to businesses and are working hard to identify further options to support them, especially small producers - we will update Parliament in due course.”
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