Trade bodies urge Welsh Government to rethink glass in DRS
A coalition of drinks, retail and hospitality organisations has called on the Welsh Government to remove glass from its planned Deposit Return Scheme (DRS), warning the proposal risks repeating the failures seen in Scotland.
The Wine and Spirit Trade Association (WSTA) has joined forces with UKHospitality, British Glass, the Scotch Whisky Association, the National Association of Cider-Makers and other alcohol sector trade bodies to urge the Welsh Government to rethink its plans for a Deposit Return Scheme (DRS).
In a letter to First Minister Rhun ap Iorwerth, the coalition warned that unless glass is removed from the scheme in full and a Deposit Management Organisation (DMO) is appointed, Wales risks following “the same cul de sac as the failed Scottish DRS”.
The coalition represents major users of beverage glass across the UK, with wine and spirits accounting for around 70% of the glass that would fall within the scope of a Welsh DRS.
The intervention comes after a report filed with Companies House revealed that most of a £9 million taxpayer-funded loan provided to the company responsible for running Scotland’s abandoned DRS has not been recovered.
Funding and infrastructure concerns
In its letter, the coalition said the lack of preparation for the Welsh scheme was becoming increasingly concerning.
It warned: “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 joined other industry bodies at a roundtable meeting in Cardiff with the new Minister for Rural Resilience and Sustainability and government officials. Discussions focused on plans to include glass in the Welsh DRS and introduce a separate glass re-use scheme.
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According to the WSTA, the majority of organisations present agreed that the scheme in its current form threatens environmental objectives, increases costs for businesses, creates fraud risks and could lead to products being removed from shop shelves.
The association also argued that proposals for a zero-rated deposit and no mandatory scheme labelling for glass between 2027 and 2031 do not provide a workable transition period. It said the plans would undermine funding for glass collections because identical containers would need to be distinguished from those covered by Extended Producer Responsibility (EPR) elsewhere in the UK from October 2027.
Wine and spirits businesses have also warned that including glass in the Welsh DRS, while the rest of the UK excludes it, would create a barrier to trade within the UK.
WSTA calls for urgent action
Miles Beale, chief executive of the Wine and Spirit Trade Association, 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 also questioned the environmental benefits of the proposed scheme, arguing that funding for kerbside bins and return points has yet to be agreed and that the policy would encourage a shift away from glass, increasing emissions. It also noted that the proposed glass collection target of 70% in 2028 is 20% lower than the current standard.
The association further pointed out that non-drinks glass containers, such as jars, would continue to be collected through kerbside recycling, creating what it described as greater inefficiency and additional costs.
According to the WSTA, some brands have already indicated that including glass in the scheme would lead them to withdraw from the Welsh market or significantly reduce the range of products they sell there.
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