Scottish Government Accused of Irresponsibility Over DRS Push

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The Scottish Government was described as “completely irresponsible” in its management of a failed recycling program, according to what was stated in court yesterday.

Lord Alister Jackstated that Holyrood’s efforts to introduce a deposit return scheme (DRS) were “a comedy of errors.”

The ex-Scottish Secretary criticized a letter written by Lorna Slater, the former Green Party minister in charge of the initiative, as “irresponsible” for not informing them about the potential issues that would prevent it from proceeding.

He informed the Court of Session inEdinburghthat the Scottish Government ultimately attempted to ‘point a gun at our heads’ in an effort to secure the scheme’s approval because of its inadequate preparation.

He was providing testimony at a session examining if a waste management firm should receive compensation due to the failure of the project.

Biffa Waste Services claims that ministers are accountable for the £166.2 million in losses it has suffered and is seeking compensation for the funds it allocated to the unsuccessful project as well as the lost revenue.

The company thinks the Scottish Government gave incorrect information about the program when they promised Biffa that the project would proceed.

The firm is reported to have depended on personal guarantees from former Green Party co-leader Lorna Slater regarding DRS prior to committing £55 million to vehicles and machinery. Nevertheless, the then minister for the circular economy withdrew from the project in June 2023.

Lord Jack informed the court yesterday that the Scottish Government’s plans might have negatively impacted the economy and consumers through significant increases in prices.

He further mentioned that over 1,000 companies contacted him, expressing concerns that the plan might lead them to cease selling goods in Scotland.

Lord Jack said: ‘I had French wine producers telling me that they were going to stop selling their wine in Scotland.’

He mentioned that the Scottish Government had not shared specific details regarding the effects their suggestions would have on the UK economy.

He also mentioned that the Scottish Government failed to adequately ensure its plans aligned with a significant UK commercial law known as the Internal Market Act.

With the DRS system, a 20p charge was planned for every single-use beverage container made of plastic, metal, or glass.

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The cost might be refunded once the containers were returned to stores or via automated recycling machines.

Following the UK Government’s rejection of a proposal for exemption from the Internal Market Act, the initiative was discontinued.

Lord Jack stated that the ministers were aware in 2022 that, according to the law, they would need to seek approval from the UK government in order to pass the legislation.

The court was informed that there was no certainty the UK government would proceed with this, and that the Scottish Ministers did not convey this to companies that had invested millions in constructing recycling facilities.

Referring to a letter that Scottish Government minister Lorna Slater sent to companies in May 2023, Lord Jack expressed his ‘disgust’ over its content, claiming it ‘misled’ those who received it regarding the program. He pointed out that it failed to mention that the initiative could be canceled.

He said: ‘I am amazed that a letter was issued by officials and signed by a minister, sent to companies that were investing their shareholders’ funds or their own money – a significant amount – without being aware of the full extent of the risks involved.’

It was, in my opinion, reckless to withhold the full details from companies that are investing funds, and to fail to inform them about the potential dangers.

‘There was a high level of risk and it was utterly irresponsible to send this letter, and that’s my opinion.’

He also said the Scottish Government’s preparations for the scheme were poor.

He said, “It was a series of mistakes. Absurd. Everything was absurd. They were holding a gun to our heads. It all happened very quickly, under a lot of pressure. They should have been doing this work a year before. But they didn’t.”

Lord Jack also informed the court that the UK government’s choice to not approve the Scottish Ministers was due to certain elements of the deposit scheme violating current British commercial law.

Lord Jack also mentioned that supermarkets were informing him they would not deliver products such as milk if the program were implemented.

He stated: ‘This might have impacted the elderly, those who are vulnerable, and individuals with disabilities.’

The court was informed that craft beer companies and French wine producers would incur expenses to supply goods for the Scottish market.

He stated, “If French wine producers were to cease sending wine to Scotland – that would have impacted consumer options.”

There was nothing political about it. There was no attempt at politicization.

Ms. Slater informed Biffa’s legal representative, Roddy Dunlop KC, that she had not anticipated the UK government employing the Internal Market Act to obstruct the initiative.

She mentioned that there were multiple ‘existential’ challenges that might have prevented the project from being implemented.

She believed the Scottish Government’s approach was that the UK government wanted the scheme to proceed.

Ms. Slater stated, “We had previously secured an exclusion from the IMA. We were completely sure that the procedure would be applied once more.”

The hearing continues.

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