The Grocer has learnt drinks industry bosses and retailers are hopeful Plaid Cymru’s historic victory in last week’s election will revive hopes of a UK-wide launch of the deposit return scheme in October next year.
Before its disastrous election results, the Welsh Labour government, which previously dominated the Welsh administration, rejected the industry’s proposals to run the DRS proposed for Wales.
The bid by Exchange for Change, which has already been appointed to run the scheme in England, Scotland and Northern Ireland, was turned down because it did not adequately take into account the Welsh government’s plans for glass to be included and for the DRS to encompass a major shift towards reuse.
However, with Rhun ap Iorwerth yesterday voted in as first minister of Wales after Plaid Cymru’s Senedd electoral victory, it is understood Exchange for Change is to resubmit its bid, ahead of the new 2 June deadline, without major changes.
A source told The Grocer: “I don’t think anyone is naïve enough to think that the Welsh DRS is a first 100 days priority for the next first minister, but the deadline for the DMO has meant it’s coming up in his first 30 days.
“We are very hopeful that the new government, despite being a minority administration, will have a more pragmatic approach and that it can give a lifeline to the hopes of a UK-wide launch of DRS next year.”
Labour, under former deputy first minister Huw Irranca-Davies, had made the inclusion of glass from day one of DRS a key condition of the Wales scheme going ahead, as well as a core reuse element to the scheme. Plaid Cymru’s election manifesto was much less stringent.
It pledged to Introduce a Welsh DRS for plastic and metal drinks containers – including glass “when this becomes practically feasible” with “relevant exemptions to prevent added costs for small businesses”.
The UK government granted Wales permission to have a breakaway scheme including glass under the Internal Market Act, in February, in a move the industry said paved the way for chaos in the DRS rollout.
However, The Grocer understands drinks bosses and retailers are hopeful that a compromise can be found to prevent the cross-border chaos that had been feared under Labour’s suggestion – which would have seen glass containers included in the scheme but carry a “zero deposit” and not have labelling requirements for the first three years.
Trade bodies including the BSDA had branded the decision a “recipe for disaster” and warned it would lead to a vast number of products disappearing from shelves in a “mass market withdrawal” from Wales because the market would become prohibitively expensive.
A source told The Grocer: “I strongly suspect that the new Welsh government will have a view of protecting Welsh businesses and will realise pushing ahead with the previous plans would be damaging to their core voters. In the form of small Welsh producers.
Another source added: “Plaid are very supportive of DRS but do not want glass included, at least not in the same way as Labour.
“It seems pretty certain that the other parties, with the possible exception of Labour as they want glass included, will support the regulations being amended to remove glass.
“The key factor is that things happen as soon as possible.”
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