Humza Yousaf has ruled out paying compensation to businesses that invested in Scotland’s deposit return scheme on the basis it would go live before other UK nations and include glass.
Speaking to the BBC’s Sunday with Laura Kuenssberg, the Scottish first minister said he doesn’t believe there is a “case” for the Scottish government paying compensation.
The comments follow Circular Online confirming the British Soft Drinks Association (BSDA), whose members include Coco-Cola, A.G. Barr which produces Irn-Bru, and Innocent Drinks, is seeking compensation from the Scottish government following the delay to Scotland’s deposit return scheme (DRS). The first minister’s comments were strongly criticised by The Federation of Independent Retailers.
Asked directly by Kuenssberg if he is going to pay compensation to businesses that have invested in the scheme, Yousaf said he doesn’t believe there is a case for the Scottish government to provide compensation because of the UK government’s “11th-hour” invention which meant the Scottish DRS isn’t viable.
Last week (5 June), the Scottish government delayed the launch of its DRS until at least October 2025. The announcement came after the UK government declined a request for full exclusion from the Internal Market Act.
However, the scheme’s administrator Circularity Scotland has insisted the groundwork is in place for the scheme to still go live as planned on 1 March 2024 without glass.
The Scottish government’s claim to seek an improved relationship with business will have faint credibility if it seeks to evade paying compensation.
Reacting to the comments, National deputy vice president Mo Razzaq of the Federation, said: “How can the Scottish government claim that there is no case to answer? It told us repeatedly to get ready for this scheme.
“Shopkeepers who took out leasing contracts are paying almost £4,000 a year, for now, redundant machines to process returned bottles and cans. Some retailers have also paid thousands for structures to house the machines outside or shop fitting to accommodate them inside. This is money they can ill afford. The number of store closures in towns and villages across Scotland confirms small shops have a fragile economic existence.
“The Scottish government’s claim to seek an improved relationship with business will have faint credibility if it seeks to evade paying compensation.”
