A legal challenge to the UK’s first deposit return scheme has been given the go-ahead, in a move that piles more doubt on the prospect of it going ahead in the summer as planned.
With DRS due to launch north of the border on 16 August, the Scottish Court of Session last week gave permission for a case brought by convenience store owner Abdul Majid to be heard.
Backed by the Scottish Grocers’ Federation, he claims the costs of installing and maintaining reverse vending machines or handling manual take backs will “cripple” small businesses like his.
The hearing is expected to be held within 12 weeks, but legal experts have told The Grocer if the court finds in the shopkeeper’s favour, scheme administrator Circularity Scotland (CSL) could be ordered to re-run some or all its consultation on the rollout, including the level of handling fees. This would put the August timeline at “serious risk”.
The Scottish government and CSL have made a series of major changes to the plans for DRS, amid fears over the cost to retailers and producers. Thousands of smaller retailers have been allowed to opt out of the scheme, while producer fees have been slashed by up to 40%.
When he launched the challenge in November, Majid told The Grocer the handling fees for smaller retailers announced by CSL – of 2.69p per container for manual takebacks or, if using reverse vending machines, 3.55p for the first 8,000 containers received and 1.35p for each additional container, were nowhere near adequate.
“I cannot get it to work,” he said at the time. “I need to take that business model to a bank and say the money that I will be refunded will pay for the machine. If I can’t get that model to work, on what basis will the bank lend to me?”
“The court has granted its permission for the judicial review petition brought by Abdul Majid & Son Limited to proceed following a court hearing on 15 December 2022,” said SGF CEO Pete Cheema.
“Scottish Grocers’ Federation has been and remains fully committed to a fit for purpose deposit return scheme but for that to happen recognition must be given and action taken to address the concerns around retailer handling fee levels, which has been raised in Mr Majid’s petition.
”The return handling fee for Scotland’s deposit return scheme will be the highest of any scheme anywhere in the world and was calculated following close consultation with industry and analysis of existing schemes in different countries,” said a spokesman for CSL.
“We continue to work closely with government and industry, including retailers and producers of all sizes, to ensure that the scheme operates as effectively, efficiently and at as low a cost as possible from when it goes live in August 2023.
“This has already seen new guidance from the Scottish government to streamline the exemption process for those retailers who don’t wish to operate as a return point. The deposit return scheme will transform how Scotland recycles and prevent billions of bottles and cans from ending up as waste. We’re focused on making sure that the scheme is a success and helps protect Scotland’s environment for generations to come.”
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