In a hangover from the first attempt at introducing a DRS in Scotland, proposed logistics partner Biffa has had its £50m lawsuit against the Scottish government thrown out.
By Antony Begley
As the countdown to the proposed implementation of a new Deposit Return Scheme (DRS) in October 2027 continues, one of the key hangovers from the first calamitous attempt to introduce a scheme came to a head last month when Biffa’s £50m claim against the Scottish Government was thrown out by the Court of Session.
As the preferred logistics partner for DRS 1.0, Biffa had filed the lawsuit after investing millions in the scheme off the back of repeated and very vehement public pronouncements by former Minister for Green Skills, Circular Economy and Biodiversity Lorna Slater.
Slater continued to aggressively assert that the scheme would go ahead right up the point that it was ignominiously postponed. In addition to Slater’s repeated public statements, Biffa told the court that it received a letter from her in 2022 implying that the scheme would indeed go ahead.
Biffa said it subsequently signed a 10-year contract with Circularity Scotland, the now-defunct firm set up to administer the DRS, as a direct result of that letter.
Biffa’s legal team alleged that the letter was a misrepresentation of the government’s position at that time and sought more than £51m in damages.
Meanwhile, Slater continued to state publicly that the scheme would go ahead despite it becoming clear in the background that the UK government was set to deny the DRS an exemption under the Internal Market Act. Without this vital exemption the scheme could not proceed as planned.
Indeed, former Scottish Secretary Alister Jack described it as “utterly irresponsible” to encourage investment without mentioning the “huge level of risk”.
Somewhat remarkably, then, judge Lord Sandison last month rejected these claims, describing Biffa’s interpretation of the letter as “wishful thinking” and equivalent to trying to turn “base metal into gold”.
Anyone who lived through that sorry period, however, would surely have some sympathy with Biffa’s position. The company is now reviewing the matter with its legal team.
DMO progress
As for DRS 2.0, delivering the Deposit Return Scheme in Scotland, England and Northern Ireland is the responsibility of the UK Deposit Management Organisation (UK DMO), which continues to make solid progress as the October 2027 deadline looms ever larger.
It has now appointed Niamh Lawlor as Chief Financial Officer, meaning that all Board positions for the organisation are now filled.
Lawlor joins from Poundstretcher where she was Chief Financial Officer and brings more than 25 years of experience in senior financial leadership roles across organisations in the UK and Ireland.
Prior to Poundstretcher, she spent over two decades at Tesco, holding a range of senior finance positions spanning retail operations, logistics, infrastructure and online delivery, and served as Chief Financial Officer and Executive Board Director at Tesco Ireland.
During her time in Ireland, Lawlor was part of the executive leadership team during the implementation of Ireland’s Deposit Return Scheme, giving her first-hand experience of the complex operational change required to establish a DRS.
Lawlor said: “The DMO has made strong progress in a short space of time, and I’m pleased to be joining at this important next phase. I’m looking forward to working with colleagues to help build the financial foundations needed to support the successful delivery of the scheme.”
John Bason, Chair of UK DMO, said: “Niamh’s appointment is an important step for the organisation. With Board positions now filled and organisational structures in place, we are moving into the next phase of work – finalising scheme design and supporting industry readiness across the UK, to ensure the scheme is practical, fair and works for everyone involved.”
Convenience focus
Encouragingly, the UK DMO continues to engage proactively with the local retailing sector, hopefully ensuring that the sector’s unique characteristics and specific concerns are understood and heard.
Board Director Rebecca Oliver-Mooney has been leading this engagement, working closely with the Association of Convenience Stores, Scottish Grocers’ Federation and the Fed. Oliver-Mooney commented: “Convenience retail will be crucial in making DRS a success. While we aren’t able to answer all questions now, we want to provide as much clarity as we can, as soon as we can. DRS is on the way, and now is the time to start considering what this means for your business.”
Detailed guidance for independent retailers will be published in early summer and the UK DMO has committed to engaging with the sector through trade associations, direct consultation and events.
Engagement with governments and regulatory bodies across Scotland, England and Northern Ireland remain positive and constructive, says the organisation. It has established dedicated monthly deep-dive sessions with regulators to cover specific technical areas, including IT systems, and these discussions continue to inform its planning and delivery approach.
