3. To ask the Scottish Government how much it has allocated from its budget to cover any additional costs resulting from the delay to the deposit return scheme. (S6O-02174)

Scotland’s deposit return scheme is an industry-led scheme, in line with the principles of producer responsibility. The investments that have been made by businesses to date will be important for the success of the scheme when it launches on 1 March 2024. Accordingly, the Scottish Government has not allocated additional funding to cover industry costs due to a delay.

A wide range of businesses have welcomed the delay of Scotland’s DRS, and the Scottish Government, the Scottish Environmental Protection Agency and Circularity Scotland are working intensely so that we are ready for the launch in March next year. However, that will only be achievable if the United Kingdom Government urgently issues an exclusion for the scheme from the United Kingdom Internal Market Act 2020, giving businesses the certainty that they deserve and need.

That is a concerning answer from the minister. The Federation of Independent Retailers has called on the Scottish National Party to compensate retailers who have already signed contracts for reverse vending machines due to the recently announced delay. What is the Government doing to support those who have entered into expensive contracts for RVMs who now might not need to provide RVMs as a result of the changes to the detail of the scheme?

Meghan Gallacher will be aware that the contracts to which she referred are a matter for the contract between Circularity Scotland and the producers. Members can be assured that only the largest producers are making those contributions. Retailers are now able to register, and smaller retailers in particular are able to apply for an exemption. However, many retailers are keen to be part of the scheme because it will attract footfall to their stores.

If Meghan Gallacher is concerned about further delay, I ask her to urge her colleagues at Westminster to ensure that the exclusion that we need to get the scheme up and running is in place as quickly as possible.

A multinational company with a dubious environmental record is the sole logistics partner for the deposit return scheme, which should cause concern about the potential to distort competition in the waste management sector. The final business regulatory impact assessment—released in late 2021—does not look at that, but we expect a new assessment to be released when the regulations are amended. Will the new assessment examine the logistics contract? If not, will the minister ask the Competition and Markets Authority to do so?

It would be best if the minister who is responsible for the scheme contacted Meghan Gallacher about that matter; I will ensure that she is aware of the member’s question.

The Deputy Presiding Officer:

Question 4 was not lodged.