A new drinks recycling scheme set to go live in Scotland later this year has become a lightning rod for fury from worried business chiefs who have branded it unworkable.
Criticism of the Scottish Government’s deposit return scheme came into focus last week when SNP rebel Fergus Ewing branded his own party’s policy a “disaster”.
Now Tory Scottish Secretary Alister Jack has urged Nicola Sturgeon to pause the scheme, sparking fears of another constitutional showdown.
Here’s all you need to know about how the new environmental programme will impact drinks firms, and why it has become a source of anger.
What is the deposit return scheme?
New laws coming into force on August 16 mean consumers will have to pay an extra 20p when they buy drinks in single-use containers.
They can then earn that money back by returning their empty can, bottle or glass to vending machines which will be placed across Scotland.
The aim of the scheme is to improve recycling north of the border. All firms who sell drinks in containers covered under the policy will have to comply.
Businesses with a turnover of more than £85,000 a year will need to pay an initial fee of £365.
The project is set to create up to 21 jobs in Dundee as a former bakery factory is turned into a deposit return centre.
Scottish Greens minister Lorna Slater said: “Scotland’s deposit return scheme will recycle billions of bottles and cans, cut emissions, tackle littering and address public concerns in Scotland about the impact of plastic and other waste.”
Why are lots of businesses opposed?
While the scheme may be well-intentioned, small businesses in the north and north-east warned they will be hurt by admin costs and registration fees.
Whisky consultant Blair Bowman, who has led a push against the new laws, warned it will cause some drinks companies to fail.
He told the Press and Journal: “Everybody wants Scotland to have a successful deposit return scheme.
“What everybody’s against is the way this has been forced upon businesses and is totally disconnected from reality.”
A Fife wine shop owner said the scheme will “decimate” his trade and fears he will be unable to sell some of his stock.
More than 600 companies who will be impacted by the policy signed a letter to the government voicing their frustration.
‘Businesses will fail’
Ex-SNP minister Mr Ewing launched an extraordinary attack on the environmental scheme last Thursday and warned it could turn into a “catastrophe” if it is not paused.
The Inverness and Nairn MSP said to the first minister: “Businesses are in a state of fear.
“Some will close. Some will fail. Others will no longer sell their own produce in their own country of Scotland.
“Unless halted now, this scheme – which most businesses believe to be fatally flawed – will damage the reputation of Scotland as a place to do business.”
Is the scheme doomed to failure?
In response to Mr Ewing in Holyrood, Ms Sturgeon admitted her government would consider whether more can be done to help small businesses.
But Mr Bowman believes the project is “destined to crash and burn” unless there are significant revisions.
In particular, some firms want the scheme to be amended so that glass containers are not included.
The UK Government plans to introduce its own deposit return initiative in 2025, but for now Scotland will be the only place in the UK operating the scheme.
Mr Kemp said it will be “very difficult” for the project to work if it is not done UK-wide, since many firms trade both north and south of the border.
Scottish Secretary Mr Jack said: “The last thing we want to do is rush into this and cause unnecessary difficulties for businesses in Scotland, particularly when many are still recovering from the effects of the Covid pandemic and are having to deal with increased costs.
“It is not too late to think again.”