A coalition of retailers and drinks companies has urged the Welsh government to appoint a deposit return scheme administrator before the country’s elections in May, or risk ruining the chances of an October 2027 UK-wide launch.
The intervention comes after Wales was given the go-ahead to diverge from the rest of the UK by including glass from day one of its DRS, in an approval by Westminster in February.
Trade bodies warned that without the swift appointment of an administrator, the chances of a UK-wide rollout going ahead as planned were slim, leading to a much greater threat from industrial-scale border fraud which could expose the industry to risks estimated at up to £300m per year.
A bid by drinks bodies responsible for running the UK deposit management association (now named Exchange for Change) is understood to be the only serious bid on the table for Welsh ministers, having been submitted earlier this year despite drinks bosses’ concerns over the Welsh plans.
Sources said the risk of a lack of “interoperability” were far higher without an industry-led DMO to help steer the strategy.
“It’s vital that people who most understand what is needed to ensure a joined-up DRS system, which doesn’t cause chaos for the industry, are brought in as quickly as possible,” said one source.
“The longer this is left to politicians, the more chance there is of the October 2027 date being missed.”
The concerns follow warnings last month from drinks bosses that Wales faces a “mass-market withdrawal” after the decision to allow its DRS to include glass.
They 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.
“Laying the regulations is a big step forward in establishing a UK-wide deposit return scheme, enabling a unified approach for plastic bottles and metal cans, although Wales’ inclusion of single-use glass in its scheme means challenges remain,” said British Soft Drinks Association director general Andy Bagnall.
“We look forward to the Welsh government now rapidly appointing a scheme administrator and ensuring glass is included in the scheme in the most practical way possible, by keeping the required number of glass-enabled reverse vending machines to an absolute minimum.
“The Welsh government must also engage with industry to resolve the issues inherent in different schemes for glass on either side of the border – including the risk of substantial fraud – to remove the cliff-edge in four years’ time when the transition period ends.”
BRC CEO Helen Dickinson said: “While we are pleased Wales will align its scheme on plastic bottles and metal cans with the rest of the UK, significant challenges and uncertainty remain around proposals to include single-use glass without a deposit, which will add costs and create potential fraud risks, without clear environmental benefit.”
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