Make good use of hard-won DRS delay, FSB Highlands & Islands urges Scottish Government
Register for free to read more of the latest local news. It's easy and will only take a moment.
The Federation of Small Businesses (FSB) in Scotland has welcomed today’s announcement by First Minister, Humza Yousaf, that the Scottish Government has agreed to delay implementation of its controversial Deposit Return Scheme (DRS) and reset the relationship with the business community.
However, the small firms’ lobby group warned that this hard-won breathing space must be used wisely to deliver a scheme which addresses businesses’ long-standing concerns.
The FSB’s Highlands & Islands development manager, David Richardson, said: “In early March I took our FSB Scotland Policy Team out to meet drink producers, sellers and servers in the Highlands. Everyone we met said that they supported both the principles of Net Zero and recycling and the need to control alcohol abuse. However, no-one could understand why the Scottish Government would have wished to go about things in such an economically damaging way.
“I have received similar comments from Highlands & Islands FSB members about other new and proposed regulations – Short-term Lets Licensing, Highly Protected Marine Areas and the tourist bed tax (Local Visitor Levy). Businesses feel that their concerns and solutions have been ignored.
“Surely the point here is that we are all in this economic and climate-change mess together? The Scottish Government and its agencies must work with smaller businesses and their communities if we are to create truly vibrant and sustainable local Highlands & Islands economies and communities and achieve Net Zero in the most effective way.
"And to avoid future debacles over new regulations we must do more to first test their impacts on those most affected, which in many cases are in the Highlands. ‘Island Proofing’ must become ‘Highlands & Islands Proofing’; in fact our new FSB UK Rural Report, ‘The Growth Belt’, calls for ‘Rural Proofing’ to be UK-wide. "
FSB’s Scotland policy chairman Andrew McRae added: “Humza Yousaf is right that small businesses are the backbone of economy. He’s also right that prosperity and social justice are not mutually exclusive – indeed, they are intrinsically linked.
“It’s a huge relief for producer and retailers alike that he has listened to FSB’s calls for a pause on the ill-conceived Deposit Return Scheme.
“For five years now, FSB has been raising the same three issues when it comes to DRS – space, cost and time – issues which still haven’t been resolved. Along with other trade bodies, we have put forward a range of suggestions of steps that could be taken to mitigate some of these problems.
“It is essential that the Scottish Government now capitalises on this pause and engages in meaningful conversation with businesses to understand and address their concerns. Only then can DRS be delivered in a way that will work.”
Responding to Humza Yousaf’s comments on the relationship between business and government, Mr McRae added:
“DRS was a prime example of what can go wrong when policy crashes into practicality – as were the controversial anti-alcohol advertising plans he has sent back to the drawing board. The First Minister clearly recognises the need to rethink how his administration engages with business and implements its plans.
“For months, we have been making the case that the regulatory burden coming down the line for smaller operators is simply too much, and the unintended consequences of these well-meaning schemes could be devastating for the very businesses we’re relying on to trade us back to growth.
“We look forward to continuing to work with the Scottish Government to ensure that the voice of our smaller businesses and the communities they serve is heard at every stage of the policymaking process.”
However, campaign group Friends of the Earth Scotland said that the news from the First Minister came as a 'blow to Scotland's environment'.
Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “This delay marks a shameful breaking of promises which will ultimately be paid for by the people of Scotland and the environment. Over 70 per cent of people in Scotland support the deposit return scheme, but the First Minister has decided to put corporate interests and politics before people and the planet.
“The repeated delays by the Scottish Government to deliver this scheme are as damaging as doing nothing. Companies have had five years to prepare, and the majority of them are ready to go as planned in August.
“We are living in a climate emergency, and this simple scheme should be an exciting bit of progress. It’s a concerning start to Humza Yousaf’s leadership.”
