Scotland’s DRS logistics partner could take government to court over failed implementation

Image credit: Biffa.

04 Apr 2024 --- UK waste management company Biffa is reportedly considering legal action amounting to £100 million (US$126.6 million) in response to the Scottish government’s failed implementation of a deposit return scheme (DRS).

Originally slated to be the pioneering DRS nation in the UK, Scotland’s ambitions were dashed when the project faced opposition from various sectors, leading to its delay until October 2025 “at the earliest.”

The Sunday Mail has broken the news that Biffa, which had made extensive investments exceeding £65 million (US$81 million) in preparation for the scheme, is now poised to pursue legal recourse against the government.

The company’s DRS preparations included the acquisition of nearly 200 new trucks and the commencement of personnel recruitment. These plans were abruptly halted when Scotland’s green minister Lorna Slater axed the initiative last June, sending shockwaves through the waste management industry.

Circularity Scotland, the scheme administrator, collapsed with reported debts and liabilities of over £86.2 million (US$109.1 million). The company was a non-profit organization funded by Scotland’s drinks industry stakeholders, including Biffa.

An undisclosed Biffa source has emphasized the significant financial setback incurred by the company due to the scheme’s cancellation. It is reported that Biffa attributes the failed initiative’s responsibility to the Scottish government and is seeking redress.

Scottish green minister said the government had no option but to delay the scheme until October 2025.DRS back and forth
Initially intending to revisit the scheme once England and Wales rolled out their DRS versions in 2025, the Scottish government faced further setbacks when the UK government postponed its implementation for another two years.

Scotland’s first minister, Humza Yousaf, cited “the uncertainty created by the UK government in delaying a decision on the Internal Market Act” and “the concerns of businesses, particularly on the launch date,” as many producers feared potential financial and administrative burdens.

While announcing the push to 2025 in June last year, Slater said the government had no option but to delay the scheme “contrary to the will of the Scottish parliament and the all-UK basis on which we planned.”

Slater said the move will “change the playing field for non-glass drinks producers, create 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.”

As the official logistics partner for the scheme, Biffa rallied against the delay after investing £65 million in property, vehicles and counting equipment for the DRS. The waste management company’s CEO, Michael Topham, said the ramifications of the delay could send a “seismic and detrimental signal” to businesses invested in the scheme.

Scotland’s recycling on the line
The DRS aimed to enhance recycling rates and mitigate litter by introducing a deposit on all glass and plastic beverage containers, redeemable upon return to designated collection points. Biffa rallied against the delay after investing £65 million in property, vehicles and counting equipment for the DRS (Image credit: Biffa).

However, opposition from small beverage manufacturers, logistical challenges for retailers and the subsequent withdrawal of support from major supermarkets fueled criticism against Slater’s handling of the scheme.

In response to Packaging Insights’ inquiries regarding the impending lawsuit, Biffa declined to go on record at the moment, while the Scottish government could not be reached. Meanwhile, Zero Waste Scotland said it could not comment as the consultancy does not possess any information on the matter.

As the dispute unfolds, questions linger over the future trajectory of Scotland’s recycling efforts and the accountability of government decisions in navigating such endeavors.

Waste statistics released by the Scottish Environment Protection Agency in October last year sparked a debate regarding recycling progress, government policy and the future of Scotland’s waste management.

Environmental campaigners, including Friends of the Earth Scotland, argued that it would take nearly a century to reach the Scottish government’s 70% recycling target at the current pace of progress.

By Radhika Sikaria

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