“This could be the final nail in the coffin for so many small businesses.”
That’s the warning from one Lanarkshire distiller to the government as they gear up to introduce legislation for a polarising eco scheme.
The Scottish Government’s ‘deposit return scheme’ (DRS) is due to be introduced next August, but opponents of the scheme have called it the “most complex” version of such a scheme in Europe, posing a huge threat to their future.
Now over 500 businesses from across Scotland have signed an open letter to Green MSP, Lorna Slater - Scotland's 'circular economy' minister who is heading up the scheme's introduction - asking for it to be “be paused, revised and rewritten”.
As it stands, the scheme will apply a standardised 20p deposit to all drink containers (glass, metal or PET) between 50ml and three litres.
This will then be refunded to the consumer upon return of empty, in-tact containers to any one of 35,000 collection points – be it over the counter, via a reverse vending machine or an online retailer.
However, this will have a “huge impact” on small businesses, such as Strathaven distiller, Colin McLean.
Head botanist at McLean’s Gin, he told Lanarkshire Live : “There are so many issues with the proposed scheme, it’s quite literally impossible to know where to start.
“The proposals are nonsensically complicated; ideologically driven, with no basis in reality whatsoever and are completely unworkable for small/medium drinks producers, hence the huge amount of opposition on display.
“Just last night the ‘producer agreement’ landed in our inbox, only because we willingly signed up to receive such communications - I dread to think of the number of businesses still completely unaware of the implications of scheme.
“This is a 28 page document comprised of all-but-entirely legal jargon that we’ve little chance of understanding without the assistance of a solicitor or a degree in law.
"Many of us are ‘one-man-bands’ and small teams who don’t have the resources to even begin trying to comprehend the complexities of the scheme.
“We’re already working flat-out just trying to stay afloat and make an honest living in the extraordinarily difficult trading conditions inflicted upon us, and are gearing up to survive a deep, lengthy recession.”
Aimed at positively reducing Scotland’s carbon footprint, the onus of the DRS is on consumer behaviour to drive circularity - however, its opponents say the producers will be held responsible for every container they put on the market.
The open letter to Ms Slater reads: “The small number of industry bodies who know of the scheme have openly expressed their grave concerns about the serious detrimental consequences it will have on tens of thousands of businesses.
“Chief among these is the drinks and hospitality sector, as well as local councils and retailers. Not to mention the obvious damaging impact on consumer spending choice.”
The letter highlights a number of “key flaws” including risk of fraud; major losses in consumer spend; loss of investment in the Scottish economy; and the financial and environmental implications for local authorities.
It continues: “The DRS is being proposed after two years of extremely tough trading through COVID and Brexit.
“Further exacerbated by the current supply chain impacts from the war in Ukraine, rising energy costs, business costs and costs of living - many would agree the timing is not ideal.
“For the scheme to be practical consumers would first need to be informed and fully understand its premise. This highlights an obvious need for educational campaigns and resources, but not just on a national level.
“Tens of thousands of businesses who produce, can, bottle, distribute, or sell alcoholic or soft drinks in Scotland now have less than a year to successfully adapt their operations, without the necessary knowledge or levers in place.
“For the proposed DRS to be a success rather than a high-profile failure, we (industry) need our concerns to be heard. We invite the Scottish Government to engage with us to review the considerable risks and challenges mentioned.
"By working in partnership we can redesign a viable scheme that moves successfully towards a circular economy.”
Colin said that, if implemented as proposed, the DRS would be the “final nail in the coffin for hundreds, if not thousands” of Scotland’s small producers.
He added: “Ironically, many of us have already taken huge steps towards reducing our carbon footprint on our own initiative and in many cases the proposed scheme actually undermines these efforts.”
Small businesses affected by the DRS proposals and opposed to it in its current form, can sign the open letter here.
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