WSTA: Welsh DRS on ‘same disastrous path’ as Scotland
A coalition of trade groups is urging the Welsh government to remove glass from its deposit return scheme (DRS), which is “doomed to fail” without funding and infrastructure.
Wales plans to introduce a DRS for drink containers, scheduled to launch on 1 October 2027, aligning with other UK nations. However, it differs from other schemes as it plans to include glass, a move that has been slammed by the drinks industry.
In a last-ditch attempt to stop the DRS going ahead in its current form, a group of trade bodies have written a letter to Rhun ap Iorwerth, who became Wales’ first minister in May this year.
The letter has been penned by the Wine and Spirit Trade Association (WSTA), alongside UKHospitality, British Glass, the Scotch Whisky Association (SWA), the National Association of Cider-Makers, and other alcohol sector trade bodies.
They warn that the government faces the “same cul de sac as the failed Scottish DRS” without urgent action.
The coalition points out that most of a £9 million (US$12.1m) taxpayer-funded loan given to the company that led the Scottish government’s unsuccessful DRS has not been recovered, according to a report filed with Companies House.
According to the WSTA, wine and spirits alone account for approximately 70% of glass that would fall within the scope of Wales’ DRS.
The letter to the minister said: “Without urgent intervention, obligated companies will be forced to reduce stock or withdraw from the Welsh market entirely. We wish to work with your government to avoid this damaging outcome.
“With less than 15 months until the scheme is due to commence, there remains no clear funding mechanism for DRS infrastructure, kerbside collection, or reprocessing, and no Deposit Management Organisation (DMO) has been appointed.”
Last month, the WSTA was part of an industry roundtable in Cardiff that aimed to encourage the Welsh government to “see sense” and stop the DRS scheme from potentially crumbling.
The WSTA claims that the overwhelming majority of representatives present at the meeting were aligned and warned that the current DRS plan “threatens environmental goals, adds unnecessary costs to businesses, risks fraud and will result in products being pulled from shop shelves”.
The WSTA also cautioned that “arrangements for a zero-rated deposit and no mandatory scheme labelling for glass between 2027-2031 offered no practical transition window for the industry”.
Miles Beale, WSTA chief executive, said: “The WSTA, along with an overwhelmingly aligned food and drinks sector, have repeatedly tried explaining why a scheme without funding and infrastructure is doomed to fail.
“Unfortunately, politics has once again been put in front of common sense and rather than work with industry to make the scheme a success, the blinkers are on and we are heading for yet another fall off the precipice. It appears that no one has learnt lessons from the failed Scottish DRS, and Welsh DRS is headed down the same disastrous path.
“We have a very short window of time for the new government to work with industry to develop a scheme that can be delivered and that supports businesses, consumers and the environment.”
The WSTA has also criticised the government’s environmental claims, highlighting that the scheme “incentivises a move away from glass”, which would increase emissions. The glass collection target has been set at 70% in 2028, but this represents a 20% drop from the current standard, the WSTA stated.
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