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Proposal 5: Deposit and Return
Proposal
To encourage recycling and reuse by taking powers to enable the Scottish Government to introduce deposit and return systems.
Background
In Scotland, there used to be systems in place (on a non-statutory basis) under which consumers were charged a deposit for some bottles (eg lemonade bottles) and then got the deposit back when they returned the bottles. The bottles were then sent back to the manufacturer for re-filling (i.e. the bottles were re-used rather than sent off for recycling). These systems have largely disappeared from Scotland although Barrs still use it for some of their Irn Bru bottles.
A similar system also operated in relation to delivery of milk bottles: these were returnable, although no deposit was charged in the first place. Again, this is much less common now, as most people buy their milk from retailers, rather than get it delivered.
Other countries (including some EU Member States, such as Denmark, and some states in North America) have statutory systems for deposit and refund of drink containers. In Denmark, deposits apply to all cans and bottles that contain beer, soft drinks, alcopops, energy drinks and cider products. The amount of the deposit is laid down by the Danish Ministry of the Environment. The deposit is refunded when the container is returned to a store or outlet. From 1 December 2008, the deposit system in Denmark is being extended to mineral water, lemonade and iced tea.
More information on the Danish system is at www.dansk-retursystem.dk/content/us/the_danish_system/danish_deposit_and_return_system The system in Newfoundland and Labrador is outlined at www.mmsb.nf.ca/programs-beverage.htm
In Denmark, the return rate for bottles for recycling is around 85%: it approaches 100% for refillable bottles designed for re-use. In Scotland, we estimate that currently around 30% to 40% of glass bottles are recycled and around 35% of household plastic bottles are recycled, using existing arrangements such as bottle banks in the street or elsewhere and kerbside collections. An effective deposit and return scheme would be likely to supersede these arrangements which have been developed, for the most part, with public funding.
A statutory deposit and return scheme could help reduce litter, as there would be a financial incentive to return the container to the retailer.
As in Scotland, there are also some deposit and refund systems in place in other countries on a voluntary basis, without legislation. There are also examples of other countries and jurisdictions running deposit and return schemes, whilst their neighbours do not.
Any moves to a statutory deposit and return system in Scotland would require close and further consultation with retailers and other bodies. We would also need to ensure that any statutory system was in line with our EU obligations.
It would be important to design the scheme so that it encouraged the use of modern technologies known as "reverse vending" which can help to automate the return of bottles and cans.
How the proposal would work
The Scottish Government would be empowered to make regulations to introduce statutory deposit and return systems for drinks containers made from glass, metal or plastic. It might also be sensible to provide for a possible extension of this in due course to include other forms of packaging such as: food tins, plastic tubs and aluminium trays for take-away food.
The regulations would need to cover a wide range of areas, including:
- The precise types of drinks containers to be covered;
- any other forms of packaging to be covered;
- the deposits to be paid;
- the requirements on retailers (including small ones) to charge the deposit, take the containers back and pay the deposit back;
- record keeping by retailers;
- responsibility for the management of the scheme and its enforcement - ideally this would be an existing body such as, for example, SEPA;
- a duty on those receiving drinks containers (or other forms of packaging) to ensure that they are recycled or re-used;
- any provisions on retailers to use deposits that are not reclaimed by consumers in a specified way and to account for these moneys which might be available to local authorities who, in practice, have to meet the costs associated with collection and treatment of unreturned containers;
- enforcement provisions; and
- proportionate penalties or civil sanctions for non-compliance by retailers.
If powers to make regulations were enacted in the Scottish Climate Change Bill, the Scottish Government would consider establishing a working group before any regulations were drafted. This would include key parties such as retailers, convenience stores, the glass and plastics industry, the drinks industry, SEPA and local authorities.
Alternatives
The basic alternative to a statutory deposit and return scheme is to continue and strengthen the current arrangements for collecting drinks containers for recycling. This would not however stop manufacturers and retailers jointly introducing voluntary deposit and return schemes, including "reverse vending", if they so wish.
If a statutory deposit return scheme were introduced, there would be room to consider how wide its scope should be.
Questions
Consultees are asked:
1. Do you consider that legislation should be made in this area?
2. If so, what form should that legislation take?
3. Your views on the practicalities of such schemes in Scotland?
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