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28-05-2023, 12:06
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I have written a couple of times about the planned Deposit Return Scheme (DRS) in Scotland, most recently here (https://pubcurmudgeon.blogspot.com/2023/04/kicking-can.html). I made the point that the Scottish Government had so far failed to apply for an Internal Market Exemption from Westminster, which they would need for the scheme to go ahead. There were serious concerns from industry that applying different rules in Scotland would impose additional costs, erode the single market within the UK and reduce choice for consumers.
The UK government have now given their response, which is not to reject the scheme outright, but to give it conditional approval (https://www.bbc.co.uk/news/uk-scotland-65731807) on the condition that glass is excluded. Predictably, this has met with an angry response, but by removing the element that was most problematical and would cause the most problems for smaller craft producers, it could be seen as doing the Scottish Government a favour by making the scheme more realistically workable, and thus in a sense be a deft piece of politics.
Outright rejection would have been met with fury, although it might have been tempting to allow it to go ahead and let it fall flat on its face. Given the array of problems that have been pointed out, the odds must have been that it would either end up being postponed even further, or if it did go ahead in March next year, have proved disastrous. However, as the UK government are planning a nationwide scheme in 2025 they would not want the whole concept to be tarred with the brush of failure.
This may lead to some substitution of glass bottles for cans, particularly amongst craft beers but, as bottles are more expensive than cans anyway, the effect probably wouldn’t be all that great. This episode also illustrates a potential pitfall with devolution if devolved administrations are given the power to impose internal trade barriers.
It remains to be seen how the Scottish government will respond. Will they just scrap the whole thing in a fit of pique, or let it go ahead on the basis that half a loaf is better than none at all?


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