The future of the Welsh deposit return scheme (DRS) is “at real risk” after talks between the Welsh government and industry leaders ended yesterday without a major breakthrough.
Drinks industry bosses met in Cardiff with Plaid Cymru’s Llŷr Gruffydd, cabinet minister for rural resilience and sustainability, who has taken on responsibility for the scheme after the party’s election victory over Labour.
Afterwards retail bosses warned there was now a “real risk” that the Welsh scheme would not go ahead with the rest of the UK.
However, drinks industry sources suggested that the new administration had shown a “far more pragmatic” attitude than its predecessors and expressed hope that a compromise could be found.
The talks focused on the Welsh government’s plans to include glass in the scheme, with drinks bosses having suggested a compromise deal to provide a limited number of glass return points from day one of the scheme, rather than universal coverage.
Such a plan had been strongly rejected by the last government.
Exchange for Change, the not for profit body which was appointed to run the system in the rest of the UK by Westminster, was hoping that the talks would see the new administration shift its stance.
It has resubmitted plans to run the scheme after being rejected, despite being the only bid on the table to run the country’s deposit management organisation (DMO).
“We welcomed talks with the cabinet secretary but with the October deadline looming and no administrator in place, the Welsh DRS is now at real risk,” said Naomi Brandon-Bravo, policy adviser at the BRC, after yesterday’s talks.
“The Welsh government must act immediately and appoint Exchange for Change to deliver a simple, UK-aligned scheme – otherwise Welsh consumers will be left behind.”
However, a drinks industry source said: “I got the sense there was a pragmatism that didn’t exist under the previous administration.
“Yes, there was no big breakthrough, but if anyone had that expectation I think they were being a bit unrealistic.
“I agree with the BRC that the clock is ticking and Exchange for Change needs to be appointed. But we might have got a minister that understands there needs to be a decision very soon.
“I’d be very surprised if this was dragging on until after the summer recess.”
The source added: “What was really positive was that the new minister was very explicit that he was absolutely committed to October 2027, he said that a number of times.
“His message was that he can get this done.”
Earlier this week The Grocer revealed documents from an FOI by Exchange for Change, showing the scathing assessment of its bid by Welsh Labour.
It accused the drinks body of a “major lack of Welsh-specific planning” offering “no explanation of processes, criteria, logistics, costs, partnerships or timeliness for take-back services in Wales”.
The DMO was also accused of a lack of engagement with Welsh councils running kerbside schemes, and of “no integration with Welsh local authorities or existing Welsh recycling systems”. The document added the “Welsh context is almost completely missing”.
“We are grateful to the minister for his constructive engagement yesterday. With less than 16 months until the Deposit Return Scheme goes live, the new Welsh government is running out of time to appoint a Deposit Management Organisation, so the discussion was a timely one,” said British Soft Drinks Association director general Andy Bagnall.
“We welcomed the minister’s commitment to establishing the scheme in Wales by October 2027. In Industry’s view, appointing the UK scheme administrator, Exchange for Change, is now the only realistic option for that schedule to be met.
“The overwhelming majority of drinks producers, retailers and material manufacturers believe it is not feasible to include extensive glass collection from the launch of the Deposit Return Scheme in Wales.
“Including glass at every return point from the outset risks increasing costs for Welsh businesses, putting jobs at risk and significantly raising the price of drinks sold in glass bottles for Welsh consumers. In some cases, those products may even cease to be available in the Welsh market.
“There is still time for the new government to work with industry to develop a practical approach to glass that supports businesses, consumers and the successful rollout of the scheme. But that process must begin with the appointment of the scheme administrator – and it needs to happen in the next few weeks.”
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