DRS causes 'significant barriers to trade'

This comes as environment minister Rebecca Pow last week announced a new DRS​ would be implemented across England, Wales and Northern Ireland from 2025.

However, while British Beer & Pub Association (BBPA) chief executive Emma McClarkin said the delay to the launch of a DRS was “positive”, “lessons” learnt form the Scottish DRS, which is due to begin in August this year must be “applied”.

She added: “To ensure a functioning and effective scheme across all UK nations it is crucial that enough planning time is provided.

“With less than eight months until the go live date in Scotland it is imperative that DEFRA, HMT and HMRC provide further information on VAT on deposits as a matter of urgency. Businesses are unable to fully cost and plan for the impact of a DRS without this detail.

“The complex nature of DRS means the operational challenge is extremely large and it is crucial further information is provided as we move ever nearer to the implementation date in Scotland if the scheme is to operate effectively and efficiently.”

Interoperable 

This follows the recent announcement a ban on single-use plastic plates, trays, bowls and cutlery ​​​would be introduced in England from October 2023.

Additionally, McClarkin urged the Government to “swiftly” appoint a deposit management organisation to ensure businesses are provided with the requirement information as “early as possible”.

She said: “It is also critical for businesses that operate across the UK the schemes are interoperable, as entirely separate schemes add unnecessary risks and complications for businesses in Scotland, England, Wales and Northern Ireland.”

Under the new plans, so called reverse vending machines will be hosted at venues selling drinks in single-use plastics, taking a small deposit that is refunded to the customer after returning their can or bottle.

Furthermore, packaging producers will be responsible for the disposal and recycling costs of their products.

Society of Independent Brewers Association (SIBA) chief executive Andy Slee said: “We support the intent of this legislation and have worked tirelessly with Government and other trade bodies over recent years to propose an efficient solution across the UK.

“However, this solution adds unnecessary complexity and cost to many small independent brewers as we emerge from the devastation of Covid and its aftermath. 

Further costs 

“Small breweries lead the way in sustainability, want to do more to tackle their impact on the environment, and would have supported a Deposit Return Scheme which had the same scope, and was introduced at the same time, across the UK.

“Agreement could not be reached amongst the four nations and now we will have a piecemeal system with different containers and requirements in different parts of the UK, causing significant barriers to trade.”

Slee continued the decision to include glass in Wales and in England or Northern Ireland would have “significant repercussions for small breweries and operators across the border.

Furthermore, Slee claimed the Government minister had previously promised to protect the smallest drinks producers from the cost burden associated with the introduction of a DRS but that instead, small independent breweries now faced a “significant financial hit”, resulting in a reduction in choice for consumers an increase in prices.

He added: “The experience in Scotland has shown small producers need at least 18 to 24 months to prepare for the scheme once all the costs, including the producer fee, are known and systems are in place, which only eight months before it goes live in Scotland are still not known.

“Undoubtedly the Government’s short timeframe will create further costs for small producers.”