Biffa’s lawsuit against Scottish government: Waste firm pushes ahead with DRS litigation
27 May 2024 --- UK waste management firm Biffa has confirmed it is taking legal action against the Scottish government over the nation’s delayed deposit return scheme (DRS), for which the company invested £65 million (US$81 million) before the scheme fell through after ministers in London refused to allow glass to be included in the scheme.
Legislators feared that if Scotland moves ahead of the rest of the UK, where DRS infrastructure is less developed, price disparities and trade barriers could emerge and disrupt the UK’s internal market.
Despite the Scottish government’s protests, in which it said it had been forced by powers in England to postpone needed plans that would damage the country’s economy and environment, Biffa is holding it responsible. The DRS will not launch until late 2025 at the earliest.
In a statement, a spokesperson for Biffa says: “Biffa was selected by Circularity Scotland as the logistics partner for the delivery of the Scottish Deposit Return DRS. This was done in good faith and on the expectation and understanding that the delivery of the scheme had been mandated by the Scottish Government.”
“Having carefully reviewed our position with our advisors, we can confirm that we are taking legal action to seek appropriate compensation for the losses Biffa has incurred. Given the legal action, we are unable to comment any further at this time.”
Circularity Scotland
Circularity Scotland, the organization responsible for designing and implementing Scotland’s DRS, dissolved last year after the postponement was announced.
Documents from Companies House show its debts amounted to almost £86.2 million (US$109 million). Assets available for “preferential” creditors were estimated at £2.1 million (US$26 million).
When the decision to delay was announced, Circular Economy Minister Lorna Slater, co-leader of the Scottish Greens, stated: “We have been left with no other option” than to delay the scheme “contrary to the will of the Scottish parliament and the all UK basis on which we planned.”
Slater further said that the move will “change the playing field for non-glass drinks producers, creates massive new uncertainty for businesses with conditions for interoperability with schemes for the rest of the UK that have not even been legislated for and even then may not be clear.”
By Louis Gore-Langton
