Holyrood is on course for a constitutional collision with the UK Government over a controversial recycling programme.
A formal request was finally made during a meeting between Scottish and UK ministers yesterday for the deposit-return scheme (DRS) to be exempt from laws set under Britain’s Internal Market Act.
The Times says today the exemption move is late in the process and almost a week after companies were given a deadline to sign up to the initiative.
It was reported last week that the request would almost certainly be refused, leading to the scheme being effectively blocked.
Downing Street, the Scotland Office, the Department for Business and Trade and the Department for Environment, Food and Rural Affairs all have to agree to an exemption to the internal-market laws - with only the latter Whitehall department said to be open to signing off a deal.
Business leaders have told Nicola Sturgeon that the DRS is “destined to fail” unless changes are made, and that pressing ahead with its introduction would be “reckless”. Organisations including Scottish Chambers of Commerce, CBI Scotland and the Federation of Small Businesses, joined together to send an open letter to the outgoing First Minister, calling for the initiative to be delayed.
Exemption bar
Alister Jack, the Scottish Secretary, has previously said that the bar is very high for getting an exemption to the Internal Market Act.
There has been widespread concern across the retail, drinks and hospitality sectors about the DRS, which would see an extra 20p charge added to single-use drinks containers from August 16.
People can then get their 20p back if they take the empty bottle or can to a designated return point.
Thousands of small drinks producers failed to sign up to the scheme before an initial deadline at the end of February.
All three of the candidates to succeed Nicola Sturgeon as leader of the SNP and first minister have said they would either delay parts of the DRS or provide opt-outs for small businesses.
Maurice Golden, a Scottish Tory MSP, said: “It’s depressingly predictable that, rather than delay their deposit return scheme to put right the huge flaws in it, the SNP-Greens should double down and use the policy to create another constitutional row with the UK Government.”
Grace period
Humza Yousaf, the Health Secretary and the front-runner to succeed Ms Sturgeon, attacked the UK Government’s position on the bill. He has said that small firms should be given a “grace period” of a year to comply with the DRS, but that large producers should not be let “off the hook”.
The Scottish Government called for a decision to be made “urgently” and said that the correct process had been followed for requesting an internal-market exemption.
If the exemption is not agreed to, UK suppliers outside Scotland could sell north of the border without signing up to the scheme, which would put Scottish rivals at a disadvantage.
If an exemption is granted, British suppliers would have to sign up, but many have said they would pull out of Scotland instead.
UK ministers believe the scheme would turn the Scottish border into a trade barrier.
The chief executive of the Scottish Chambers of Commerce, last week accused Lorna Slater, the Green minister in charge of the DRS, of completely ignoring concerns from Scottish firms.
Call to pause DRS
Liz Cameron said: “Our call was to pause the scheme and redesign it with the business community - and that call has been rejected by the minister.
“It’s been clear to the business community for some time that operating this poorly-designed scheme in its current form is impossible and is adding unnecessary cost pressures on businesses.
“We are not alone in voicing our concerns. All three candidates for the SNP leadership have expressed their reservations too.
“It is abundantly clear to all involved that the roll-out of the scheme has to be paused immediately and then reviewed in partnership with the business community.
“The scheme must be made cost-effective for firms and better aligned with DRS plans in the rest of the UK.”