THE Scottish Government has announced a multi-million-pound support package for drinks producers in response to criticism of a major new recycling scheme set to launch later this year.

By August 16 every Scottish business which sells single-use drinks cans or bottles will be expected to have a takeback scheme in place - also known as the Deposit Return Scheme (DRS).

This means that consumers will pay an extra 20p deposit on these items, which they will then get back once the empty container is recycled at a reverse vending machine or recycling point.

However, many businesses had expressed concern that the scheme currently being proposed would increase costs for the consumer and reduce the amount of choice available.

In particular, small businesses criticised the up-front charges levelled at producers (around 2p per item for plastic bottles and 4p for glass bottles) and the fees set to be imposed for failing to introduce a special Scottish barcode.

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Circularity Scotland has now announced £22 million of cashflow support for brewers, distillers, importers and drinks manufacturers to help them prepare for the introduction of the DRS.

The day one charge for producers who choose not to introduce Scotland specific barcodes has been removed as well as the month one charge on deposit and producer fees for all businesses up to a threshold of three million units. 

This, according to Circularity Scotland, is aimed at helping small and medium-sized enterprises with cashflow.

Two-month credit terms are also being made available to all producers regardless of their size.

In addition, self-adhesive barcode labels will be accepted for producers placing less than 25,000 units of a specific product on the shelves each year.

David Harris, chief executive of Circularity Scotland said: “We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.

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"We have already announced reductions in producer fees of up to 40%, while also being able to offer the highest return handling fees of comparable schemes anywhere in the world.

"These additional support measures further demonstrate our confidence in being able to deliver ongoing operational efficiencies once the scheme has gone live.

"We are committed to ensuring that the deposit return scheme works for Scotland, is cost effective for business and helps protect our environment for generations to come.”

Circular Economy Minister Lorna Slater said: “This is a big and welcome change that that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers.

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"It addresses initial cash flow challenges, and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines. This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s deposit return scheme.

“Over the last few months I have been meeting industry regularly to listen to their feedback and this industry-led solution has been designed in direct response to its concerns.

"I remain committed to a pragmatic approach to implementation between now and August 16.

"By working together we can lead the UK in delivering a deposit return scheme which will increase Scotland’s recycling rates from around 50% to 90%, cut emissions, tackle littering and address public concerns about the impact of plastic and other waste.”

It comes as campaigners urge the Scottish Government to stick with the timetable for introducing the DRS, calling any further delay "frankly unbearable".