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How to make a deposit return scheme work

11th Mar 2022 - 05:00
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Abstract
Proposals are emerging across the UK for Deposit Return Schemes (DRS) to increase the volumes of glass, aluminium and plastic that are recycled. But these schemes risk failing unless local authorities are fully involved in their implementation, argues Paul O’Brien.

In a new report by APSE - Deposit Return Scheme: Lessons from Scotland and Implications for the Rest of the UK – we have brought together the concerns of local authority waste teams across Scotland ahead of the roll-out of the DRS there.

So what exactly is a DRS? It involves a deposit being charged to the consumer for the use of drinks containers made from glass, aluminium or plastic to ensure those products are returned for reuse to the manufacturer.

This, it is argued, will ensure that the materials returned will be of a higher quality, more capable of reuse and recycling, and ultimately support the circular economy by avoiding the use of new raw materials.

Whilst our research publication concentrates on the proposed scheme within Scotland, I believe that some of the lessons learned are equally applicable to the rest of the UK which will face similar measures in the coming years.

In particular, it examined the implications of a DRS on service delivery in Scotland, using it as an emerging case study given it is ahead of other UK administrations in bringing forward proposals.

The report provides information on the UK perspective as well as an overview of other schemes, which have been implemented or are being considered across Europe.

It also contains detailed information collated from roundtables and survey work with local authorities within Scotland, who are at a more advanced stage of developing a DRS.

Across the UK over three quarters of all councils have declared a Climate Emergency. Waste and recycling for many councils is a core service and is therefore central to many of those pledges on climate change.

So our research aims to provide APSE’s UK wide membership with information and analysis to help those within waste and recycling services to consider the challenges, and opportunities, presented by a DRS.

Whilst many APSE member councils may support the principles of a Deposit Return Scheme in creating higher quality recycling materials and supporting a circular economy approach, there are also many unanswered questions.

Our survey therefore provided a platform for local authorities to air their views and offer practical solutions to how the DRS can be successfully implemented.

And they are clear that without the necessary input of local government, the DRS, and its purported benefits, will falter, thereby jeopardising local, regional and national environmental targets. I therefore highly commend this report to governments across the UK.

As result of this extensive consultation with our members, APSE makes the following recommendations:

Go Live Date

We recommend that local councils continue to be kept fully informed as well as consulted with on progress of the implementation timescales in order to enable changes and modifications to services to ensure a planned and smooth transition for the introduction of the Deposit Return Scheme.

Support for revised compositional analysis

We recommend that all councils are offered support to create new data, based on up-to-date compositional analysis. Whilst we recognise existing compositional analysis may still be reasonably valid in some areas this is not universal and appropriate targeted support should be available to all councils to ensure that the data being used to drive decisions, including operational and financial modelling is fit for purpose.

Modelling software to gauge the impact of changed assumptions

We recommend access to suitable software for all local councils to enable real time decision-making and forward planning. This would be a low-cost solution but provide the opportunity to plan for changes with different scenarios. This avoids decisions being made on out-of-date, inappropriate or unrealistic assumptions.

Charter review to consider the views of local councils

We recommend that the Charter and associated Code of Practice is reviewed with full consideration of the potential impact of the DRS on the ability of local authorities to comply with a code designed in a pre-DRS era.

VAT on Deposits

We would respectfully request that the Scottish Minister for Finance and the Economy, Kate Forbes, MSP and Lorna Slater MSP, Minister for Green Skills, Circular Economy and Biodiversity write to their counterparts in Westminster to demand an urgent resolution to this matter.

Contract advice and securing Best Value

We recommend that urgent advice is provided to local councils, which is consistent with their Best Value Duty, and which provides assurances on contractual issues; including the potential for compensation sums to current contractors and service providers.

Arguments of Force Majeure may not hold since this is a creature of the contract itself and not a common law issue. It is therefore essential that advice is provided in a timely and consistent way.

Download a copy of the APSE research

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Written by
Edward Waddell