1. To ask the Scottish Government whether it will provide an update on the deposit return scheme. (S6O-01924)

Circularity Scotland is now at an advanced stage of building the infrastructure and logistics network that will underpin the scheme. Sites have been secured across Scotland to handle and process material. Counting equipment and vehicle fleets are arriving. Recruitment is under way to create 500 new jobs in Scotland in processing and logistics.

Likewise, businesses of all sizes are continuing to make good progress as they prepare for launch in August this year. The deposit return scheme is a transformational step change on our road to net zero, and businesses here in Scotland have the necessary momentum to get us there.

Small producers in the Highlands and Islands, especially craft brewers, including Fyne Ales and Glen Spean Brewing, are deeply concerned about the many unanswered questions that remain about the DRS, including how the contractor, Biffa, will collect materials from rural and remote locations that are hard to reach.

Given those legitimate concerns, why will the Minister not pause the introduction of the DRS until those matters have been fully resolved or, at the very least, grant smaller producers a grace period before joining the scheme?

I take the concerns of small producers seriously, and, this week, Circularity Scotland announced a package of measures to specifically answer some of the concerns that have been raised by small producers in terms of cash flow and labelling.

The process of organisation and logistics is a matter of co-design between businesses and Biffa, the logistics partner, to ensure that the system works for everybody, and that will continue. This afternoon, I will meet small producers to find out what else we can do to support them.

Although I welcome recent changes on fees for small drinks producers and other improvements to the planned roll-out of the DRS, some businesses in my Constituency are still concerned about implementation at a time of other serious economic pressures, and have practical concerns about storage space and cost pressures.

Although the aims of the DRS are understood, with widespread acknowledgement of the need for it, does the Minister recognise that continued uncertainty, and how does she plan to address it? What practical changes have her recent meetings with industry produced?

I understand that implementing the DRS is a big change to manage, particularly for small businesses. I have been regularly meeting industry stakeholders throughout the process. As a result of feedback from retailers, we have simplified the return-point exemption process, particularly in relation to concerns around storage, and Circularity Scotland this week announced a package of support to improve cash flow for producers, which equates to £22 million of support. That was in direct response to specific asks from small producers.

I will continue to meet businesses and listen to them, and, later today, I will meet with a group of small producers.

Some MSPs have claimed that operating kerbside collections alongside the DRS would make Scotland unlike any other country in the world. Are those claims accurate? How would the Minister like councils to respond to the DRS?

Those claims are inaccurate. Many countries that operate a deposit return scheme also have kerbside collections, including Norway, Germany, Croatia and Iceland. Our scheme will mean that local authorities will have less waste to handle, as well as reduced litter and associated clean-up costs, which is good for residents and good for council budgets.

We are supporting local authorities to prepare for the introduction of the scheme and our £70 million recycling improvement fund is supporting councils to modernise recycling services.