Crunch talks aimed at salvaging the Welsh deposit return scheme (DRS) are to be held later this week, The Grocer can reveal.
Sources are suggesting there is fresh hope the new Plaid Cymru government may be more open to engaging with industry concerns over the inclusion of glass than its predecessor.
Meanwhile, documents have been published by the Welsh government showing the scathing rejection of Exchange for Change’s bid to run its DRS, having already won the contract to become the deposit management organisation (DMO) for the scheme in the rest of the UK.
The documents, which were published last week after a Freedom of Information (FOI) request by the body, show that while Exchange for Change has been widely praised for its smooth handling of DRS preparations elsewhere, the Welsh government delivered a brutal assessment of its bid – even though it was the only application on the table.
Welsh DRS proposals
A letter sent to Exchange for Change from former deputy first minster Huw Irranca-Davies in April shows he was hugely critical of the lack of “Welsh-specific” proposals for how the DMO would operate.
Retailers and the drinks industry have consistently urged ministers in Wales and the UK to ensure a joined-up approach across all nations. But Irranca-Davies fumed at the lack of detail over how the DMO would “meet its obligations to collect and manage glass”, a material excluded in the Westminster scheme.
The then deputy first minister also railed at the lack of plans to deliver mandatory reuse targets, insisted upon by the Welsh government.
The letter goes on to deliver an extraordinary attack on the DMO’s application, which it says “does not include a credible financial plan for the scheme”. The Grocer has previously reported that the DMO had expressed concerns over the impact of including glass and reuse on the prospect of a UK-wide October 2027 rollout, but in the letter Irranca-Davies slams its suggestions that elements such as glass and reuse can be tackled further down the line.
The letter notes that the application “asks ministers to proceed with the application on the basis of intent with a number of key elements of scheme design, with funding and delivery deferred for future development”.
A clarification document accuses the DMO of a “major lack of Welsh-specific planning” and of offering “no explanation of processes, criteria, logistics, costs, partnerships or timeliness for take-back services in Wales”. The DMO is also panned for its lack of engagement with Welsh councils running kerbside schemes and accused of “no integration with Welsh local authorities or existing Welsh recycling systems”. The document adds the “Welsh context is almost completely missing”.
The Grocer revealed last month Exchange for Change had resubmitted its bid “mostly unchanged” after Plaid Cymru’s victory ahead of an extended 2 June deadline for applications to run the DMO.
The country’s new leadership has shown a far more pragmatic approach to glass and reuse cans, with its manifesto pledging to introduce glass only “when this becomes practically feasible”.
An industry source told The Grocer: “There are some hopeful signs that the new administration will take a more reasonable approach including crucially in the key issues of glass and reuse”.
Sources said Irranca-Davies’ hardline approach had made it “virtually impossible” for the industry to meet the Welsh government’s expectations for the scheme, especially in time for an October 2027 rollout.
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