A Highland brewery boss says the controversial deposit return scheme should be paused for at least a year to save jobs and help struggling drinks producers facing already soaring costs.
Samantha Faircliff, managing director of Cairngorm Brewery, says jobs could be at risk at the Aviemore-based firm if the scheme is introduced now.
The craft brewery employs 15 people and a further 15 work at its craft ale pub and restaurant, The Winking Owl.
The businesswoman is the latest industry figure to call for a halt to the recycling initiative, with concerns it would impose potentially fatal costs on businesses.
SNP leadership candidate Kate Forbes warned the scheme could cause “economic carnage” during a visit to the Cairngorm Brewery on Monday.
She has vowed to put it on hold in response to a “wave of concern” from business, ahead of Tuesday’s deadline for firms to register for the scheme.
Costs soaring
The brewery is already facing tight costs, with energy bills “going through the roof” before taking into account additional costs it faces.
Since January, the business has seen a 50% increase to malt costs and the price of glass for their bottles is up by 25%.
Ms Faircliff said their issue is with the timing of the scheme, rather than against its principles, and she wants it to be rolled out in 2025 – in line with the rest of the UK.
She said: “We’re still in recovery post-Covid. To introduce 5.2p to my product is a step too far for us just now.
“We are not against the scheme. We just need some breathing space.
“We need at least 12-18 months. Most small producers have not recovered from the Covid pandemic.
“We lost 85% of our sales because of the closure of pubs and restaurants.”
Speaking during the visit to Aviemore, Ms Forbes said the scheme was “well-intentioned”, but that significant concerns had emerged about its execution.
Se told journalists: “It’s leaving businesses like this fearing the economic carnage it will cause if the timetable continues as planned right now.”
What do her rivals say?
Leadership rival Humza Yousaf still backs the under-fire recycling initiative but says he would temporarily exempt smaller drinks producers.
Ash Regan, the third candidate to become Scotland’s next first minister, says she would delay the scheme.
Industry body UK Hospitality Scotland is calling on all SNP leadership candidates to immediately pause the “flawed” plan and order a full review.
Green MSP Lorna Slater, the Scottish Government minister overseeing the scheme, said at the weekend that small drinks producers may be given a one-year exemption from the planned scheme.
Tory MP Alister Jack, the Scottish Secretary in the UK Government, has hinted the UK Government might not agree to a UK Internal Market Act exemption for the initiative – effectively blocking the plan.
He urged the Scottish Government to pause the scheme and work with the UK on a system that could operate nationwide.
How will the scheme work in Scotland?
When the deposit scheme comes into force, consumers will have to pay an extra 20p when they buy drinks in single-use containers.
They get the money back by taking the empty cans, glass or bottles to vending machines around the country.
But smaller companies have repeatedly claimed the new law will hurt them by increasing costs when they are already being squeezed financially.
They have until midnight on Tuesday to sign up for the scheme, which goes live on August 16.
A Scottish Government spokesman said: “Any producers with concerns about meeting their obligations should get in contact with the relevant organisations.
“We have always said we will take a pragmatic approach to implementation, to ensure that as many businesses as possible can be part of Scotland’s Deposit Return Scheme and can continue to sell in Scotland after the 16th of August.
Conversation