The existence of such a leak is disappointing. Not only does it rather steal my thunder; the Scottish Government would wish not to see such a thing happen, and I am absolutely unclear how it did.
The Scottish Government is proud to lead the way across the United Kingdom with our plans for a deposit return scheme for single-use drinks containers. Last summer’s extensive consultation reinforced the view that an appropriately targeted deposit return scheme—or DRS—would help to improve the environment and change people’s attitudes to recycling and littering. Having such a scheme is central to our ambition to build a more circular economy in which materials are kept in high-value use for as long as possible.
As members will be aware, we have embraced the recent report from the Committee on Climate Change and have acted by making amendments to the Climate Change (Emissions Reduction Targets) (Scotland) Bill. Interventions such as establishing a DRS will be central to our efforts to tackle climate change. The Scottish Government has been working closely with Zero Waste Scotland, the Scottish Environment Protection Agency and others to build on the outputs of the DRS consultation. We have engaged with a wide range of stakeholders to ensure that we learn the lessons of successful schemes. At the same time, we have been keen to avoid simply lifting and laying a model from elsewhere. We are clear that we need a DRS that properly reflects the needs of Scotland.
I am pleased to be able to share the outputs of that activity and to outline the shape of the ambitious scheme that we will deliver. Further detail on today’s proposals will be available in supporting documents that will be published after this statement.
The recent consultation signalled strong support for a DRS that would cover a wide range of materials, and so I intend to implement a system that will cover metal cans, polyethylene terephthalate—or PET, which is the most common form of plastic that is used for drinks containers—and glass.
I have looked carefully at the arguments for and against including glass. After a detailed analysis of how the costs of including glass match up to the benefits, including increased recycling rates, reductions in carbon emissions and reductions in glass litter, my conclusion is that its inclusion is justified. There is also strong public support for including it, as was shown by the Marine Conservation Society’s recent poll, in which 85 per cent of participants indicated their support for it. However, I know that some producers, retailers and the glass industry have concerns about its inclusion. I want to make it clear today that I am committed to working with them to implement the scheme in a way that will address such concerns. However, if we are to include glass, it must be done from the outset. The infrastructure requirements for the material mean that it would be hugely complex and expensive to add it later.
At this stage, I have chosen not to include high-density polyethylene—or HDPE—plastic in the scope of the scheme. HDPE is used primarily for packaging fresh milk, but there are significant concerns about it—for example, about contamination of other materials and odour. Unlike glass, it would be possible to include HDPE in our DRS at a later stage if such concerns could be overcome.
Our DRS needs to be as convenient as possible for the public. People must be able to access return points easily. It would not be acceptable for certain groups of people—for example, those who live in our more rural and remote communities or who are on low incomes—to be penalised because they cannot return containers.
With that in mind, I intend to implement a return-to-retail model, whereby all businesses that sell drinks will be required to accept returns. The change will be visible to us all, including here in this Parliament, in the Scottish Government and in workplaces across the country, reinforcing the fact that we all have a role to play in helping our environment.
We recognise that consideration must be given to the operation of DRS in smaller retail settings. Retailers will be given flexibility in how they enable returns, whether through different sizes of reverse vending machines or manual over-the-counter take-back arrangements. We will explore with retailers how the financing of reverse vending machines can be supported, and we are committed to trialling different return, storage and collection solutions in preparation for the scheme’s roll-out.
I have carefully considered the calls by some to introduce automatic exemptions for retailers below a certain size. I have significant reservations about doing so. Modelling shows that even a modest level of automatic exemption would quickly hinder the scheme’s accessibility. An exemption for retailers with a floor space of up to 280m2, as some have proposed, would result in only 17 per cent of retailers accepting returns. I do not believe that that would be workable.
On occasion, of course, there will be numerous retailers operating very close together, and where that is the case, we should build in the flexibility to accommodate exemptions. I also believe that there should be the flexibility to supplement the role of retailers through the operation of additional return points. That could help to drive additional footfall for community initiatives and could add particular value in our more rural and remote communities, which are less well served by shops. By taking that approach, we will maximise opportunities for the public to reclaim their deposits.
I have listened carefully to the hospitality industry regarding how DRS should operate for premises such as pubs and restaurants where drinks are sold for consumption on site. I can confirm that, in such cases, the premises will pay the deposit but will have the choice of whether to pass it on to the consumer.
International evidence suggests that the value of the deposit within a DRS is key to participation. The consultation indicated strong support for a deposit of 15p or more, and our analysis suggests that a deposit at around that level would support a strong return rate. Evidence from international models also indicates that ease of consumer understanding and proofing against inflation are important factors. I am therefore proposing a deposit level of 20p.
With up to 1.7 billion containers and many millions of pounds passing through our DRS, it will be important for businesses and the public to have confidence in the scheme’s operation. We have looked at examples of effective schemes elsewhere. It is clear that privately operated systems can often deliver the right performance outcomes. In practice, that involves producers and retailers establishing a not-for profit company for the specific purpose of running the scheme. I favour such a model; as DRS is a form of producer responsibility, intuitively it makes sense for industry to shoulder the responsibility for its operation, and I believe that, with the proper regulation, that approach will work well for Scotland.
In line with other schemes, I see no reason why we cannot recycle 90 per cent or more of our drinks containers through DRS. That is far in excess of current recycling rates, and I intend to reflect that aspiration in the regulations for establishing the scheme. Clearly, it will mean fewer containers being collected through kerbside collections. We will work with local government to ensure that DRS complements their collections, which will still have a critical role to play. Those collections will in future be supported through reformed packaging producer responsibility arrangements that are currently being consulted on across the UK.
The DRS regulations will be subject to the super-affirmative procedure. There will be ample opportunity to review and comment on our proposals before the secondary legislation is laid and during its passage through Parliament. I encourage everyone to take that opportunity and to continue the high levels of engagement that have benefited us to date. It is my intention to commence the super-affirmative procedure this summer.
Clearly there is much to do to successfully translate the scheme design into a fully operational service. As the contribution of industry will be central to its success, we have set up an implementation advisory group to work with those sectors with a direct stake in the scheme’s operation. Members include the British Soft Drinks Association, the Scottish Retail Consortium, the Scottish Beer and Pub Association and a number of others. The group will meet regularly to discuss implementation.
I acknowledge that our plans are ambitious. I make no apology for that, but I do not underestimate the scale of the task. I look forward to working with partners to plan next steps. My overall aim is to deliver the scheme in the current parliamentary session.
I remain open to working with the other UK Administrations, which are currently consulting on DRS. However, that must be on the basis that their ambition matches ours. Our climate change commitments mean that it is simply not an option for us to wait in the hope that others will follow the example that we are now setting. That said, I am optimistic that the bold approach that we are taking here in Scotland will provide a blueprint for future action across the UK.
Today’s announcement marks an important milestone for DRS and our wider circular economy ambitions. I look forward to working with parliamentarians across the chamber as we progress that work in the weeks and months ahead.