Coca-Cola amongst drinks giants demanding thousands and thousands in compensation over delayed Scottish recycling scheme
Soft drinks giants Coca-Cola and Red Bull are amongst a rising listing of companies trying to declare thousands and thousands of kilos in compensation after the collapse of Scotland’s controversial deposit return scheme, Sky News understands.
The Scottish authorities’s recycling plans, which might have seen customers pay an additional 20p on single-use bottles and cans, has been delayed until at least October 2025.
The drinks business had invested thousands and thousands of kilos making ready to start operations in March 2024, regardless of many arguing it could have imposed probably deadly prices on their companies.
Some senior figures additionally raised considerations the scheme would have created a commerce barrier between Scotland and the remainder of the UK.
On Wednesday, Holyrood blamed the collapse of Scotland’s system on the UK authorities, after Downing Street dominated it may solely go forward with out glass bottles included in it.
With related schemes in the remainder of the UK not on account of come into impact till 2025, the Scottish authorities sought an exemption from the Internal Market Act – which regulates commerce within the completely different elements of the UK following Brexit.
Sky News understands the British Soft Drinks Association, which represents Coca-Cola, Irn-Bru makers AG Barr and Britvic, shall be trying to declare compensation for the “millions wasted” on making ready for a bespoke Scottish system which isn’t going forward.
Read extra:
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Forbes: Deposit return scheme needs reworking to ‘avoid job losses’
Scotland’s First Minister publicizes a one-year delay to the controversial Deposit Return Scheme.
Innis and Gun, one of many UK’s largest craft beer companies, has additionally instructed Sky News it’s “carefully considering” whether or not to sue.
The Edinburgh-based producer says it’s “consulting” with the business about whether or not to say compensation from Holyrood ministers amid “huge frustration” on the wasted prices.
Founder Dougal Sharp mentioned: “I am hugely frustrated that we have a lot spent a lot of time, money and effort in a scheme that we have been warning the government about for years was not right.
“It has price us many, many hours of labor. It has price us some huge cash. We will seek the advice of with our colleagues and think about rigorously our subsequent steps. Every firm shall be trying to shield its monetary place.”
Scottish Secretary Alister Jack previously rejected a suggestion from First Minister Humza Yousaf that the UK authorities ought to choose up the invoice if the scheme didn’t go forward as deliberate.
The Scottish authorities has been approached for remark.