Lossiemouth based brewery warns deposit return scheme could wipe out small businesses across Moray
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AN independent brewery based in Lossiemouth is warning that a new drinks recycling scheme will force small businesses across Moray to close down.
Windswept Brewing have expressed concerns about the new Scottish Government backed deposit return scheme which is set to go live on August 16 this year.
Under the new scheme, anyone who buys a single use drinks container will pay an additional 20p for their drink and will receive 20p back when they return it to a return point.
The aim of the scheme is to improve recycling in Scotland and all firms who sell drinks in containers covered under the policy will have to comply. That includes businesses in Moray.
However, Windswept Brewing managing director Nigel Tiddy claims that the scheme, in its current form, is putting the future of small businesses at risk - including his own.
Mr Tiddy said: "Anything to reduce waste or litter is a positive and a deposit return scheme done well is a great ambition for Scotland.
"The issue is really the way it is being implemented for small businesses. The real crux of the matter is the cost. It's going to be expensive.
"We're going to have to change labels, pay for barcodes and we've got to pay a fee per item.
"It's probably going to be an extra 15p to 20p and some are even saying as much as 40p extra cost on a bottle of beer or whisky or whatever it is you're producing.
"Compared to big business, the relative cost per bottle just goes through the roof as we just don't have the volume. Some small businesses are already shutting up shop because they feel it's not worth it.
"I've had one lady who operates a business in Moray tell me that she's going to have to close because it's such a huge burden for her.
"I would think all the smaller businesses in Moray will be thinking how on earth they are going to manage this."
Windswept say that a "conservative" estimate for the total cost of getting ready for the scheme before it has even gone live stands at around £15,000.
The scheme has also received criticism for being 'too complicated' with many small businesses citing the 'administrative burden' that comes with accounting for recycled items, how they're returned and how small businesses manage that.
"It almost becomes the job of another person," Mr Tiddy said. "Somebody like Tennent's have the resources to absorb it into their day to day but if you're us, who employ nine people, then we've not got the resources to bring someone in to come and do this.
"That makes it hard to cope."
Circularity Scotland, which was created to ensure the smooth roll out and operation of the scheme, announced £22 million of support on Tuesday (February 21) to support small firms.
The minister in charge, Green MSP Lorna Slater, said that the move would give businesses "the clarity and confidence they need" to take part in the scheme.
Speaking at a meeting of The Scottish Parliament on Wednesday, Ms Slater said: "I take the considerations and concerns of small businesses very seriously. That is why I met them a week ago Friday, and why this week we have put in place a significant intervention.
"Circularity Scotland has announced £22 million of cash-flow support and a specific response to the concerns around labelling. Those were the issues that were raised with me by small business, and those are the solutions that have been put in place by Circularity Scotland."
However, small firms say that the support package, while welcome, will not solve the potential pitfalls of the scheme and that small businesses are still being put at risk.
"It's worth pointing out that it is not giving money to small business like it sounds," Mr Tiddy said.
"All it means is that they won’t be taking the money off small businesses in advance of the scheme going live. We will all have to pay for the scheme and deposits but it will be in arrears.
"This is absolutely an improvement in the administration for small businesses but calling it a support package is bending the truth somewhat."
Small businesses are expected to sign up to the scheme by February 28. However, with just days to go, changes are still being made.
Mr Tiddy says it is unreasonable to expect businesses to sign up when alterations are still being made and has called for an 18 month delay for small businesses to get sufficiently prepared for its introduction.
"We've been lobbying hard for the last two years to get things altered," he added.
"They've not really been listening but suddenly they think we might have a point and have decided to try and make last minute changes.
"It's too late now so they need to give small businesses respite for 18 months and let big businesses take this on to see how it works.
"It's shambolic to be honest and if it's shambles now then it's going to be a shambles in August as well.
"If it goes ahead in its current form and all these small businesses go out of business it won't be the waste they're worrying about."
