Soft drinks bosses are calling for an official probe to be launched after the Welsh government was accused of “burying” a consultation over its radical plans for a breakaway deposit return scheme (DRS), The Grocer can reveal.
It’s understood a raft of trade bodies are demanding to know why a response to the consultation, which ran from August to November last year, was never published. This was despite the promise of a response within 12 weeks from the former Welsh Labour administration, which said it would form an “important part” of shaping a world-leading DRS.
The controversy comes with just days before an extended 2 June deadline runs out for the Welsh government to appoint an administrator to run its DRS. The industry bid submitted previously by UK DRS administrator Exchange for Change was turned down in the run-up to the elections, which saw Plaid Cymru sweep to power.
Opposition to Welsh DRS plans
The Grocer understands that in the consultation, the former Welsh government received multiple documents from companies and trade bodies warning its plans to include glass from day one of the DRS rollout in Wales would cause chaos, and could even lead to a partial collapse of the Welsh soft drinks industry.
The evidence also contained figures suggesting its plans to include a mandatory reuse element within the DRS in Wales would drive up prices of soft drinks in Wales to such an extent it would make Welsh drinks companies “unviable”.
However, without publishing its responses, the Welsh government pushed ahead with its plans and threatened the UK government it would scrap its 2027 DRS rollout completely unless Westminster allowed it to include glass.
The Grocer revealed in February that Westminster had given Wales the go-ahead under the Internal Market Act, despite previous such plans by the SNP government having been refused by the previous Westminster government.
Industry trade bodies branded the decision a “recipe for disaster” and said it would lead to a vast number of products disappearing from shelves in Wales, because the market would become prohibitively expensive.
However the UK government also announced it wanted to follow Wales by adopting the radical plans for a shift to a mandatory reuse model for packaging.
Industry leaders have previously told The Grocer the reuse model would have cost implications which would “dwarf” that of EPR.
Exchange for Change’s bid
With the clock ticking down to next week’s deadline for bids to run the scheme, it is understood Exchange for Change, the body charged with running the scheme in England, Scotland and Northern Ireland, is to put in a second bid in the next few days.
Before its historic election defeat, the Labour-led Welsh government rejected its initial bid, claiming it paid insufficient attention to its determination to include glass and reuse.
The Grocer reported earlier this month that drinks bosses were hopeful of a rethink after the victory of the Plaid Cymru government.
However, it is understood no talks have been held despite requests from trade bodies representing drinks companies.
Exchange for Change is believed to still be the only bid on the table to run a DRS in Wales.
The ‘missing’ consultation
The Welsh government’s consultation page still states that responses to last year’s consultation are “currently being reviewed”.
But a source told The Grocer serious questions were being asked over why the responses from companies and the government did not “see the light of day”.
The consultation included questions over whether the drinks industry or the government was best to develop a roadmap for the rollout of DRS, and also whether companies should be asked to gradually ramp up reuse rather than commit to a full-scale system.
It also asked companies for views on what targets should be set for the collection of glass, after the Welsh government proposed having a “zero deposit” on the material for the first three years of the system. Companies were also asked about what targets should be set for mandatory reuse.
It’s understood responses from industry overwhelmingly raised fears that the inclusion of glass would risk cross-border chaos with the rest of the UK, drive up costs for retailers and producers, and increase the risk of industrial-scale fraud.
The source said: “The question is, has the Welsh government’s commitment to its version of DRS strayed into dogma rather than policy?
“The hope now is that the new Welsh government will be more pragmatic and take into account the huge concerns the industry has, but part of that is for there to be transparency on the consultations that have already taken place.”
A retail source told The Grocer: “The fact that this consultation response never saw the light of day suggests the Welsh government simply wanted to push through its idea of what a DRS should look like in Wales, ignoring the huge concerns from industry over the impact on companies and consumers.”
The Welsh government has been asked for a response.
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