Viscount Colville of Culross Portrait Viscount Colville of Culross (CB)
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My Lords, I have put my name to Amendments 133 and 133A because the DRS is one of the most important parts of this Bill. It will have a seismic effect on consumer behaviour, improve our environment and strengthen the circular economy. I and many noble Lords have already spoken about the blight of litter. Two-thirds of roadside litter is estimated to be made up of drinks containers.

The scheme is so important that it needs to be wider in scope and swifter in implementation. The present target of late 2024 at the earliest is far too slow for such an important measure. It was first announced by Michael Gove in October 2017; the initial consultation promised implementation at the start of 2023; now we are told it will be the end of 2024 at the earliest. This chronology means that the present target for the much-anticipated DRS will mean at least six and a half years before implementation, as the noble Baroness, Lady Jones, said.

I know this scheme is complicated, but it is so important that all speed is needed to implement it. I ask the Minister to listen to the words of his colleague Michael Gove who, in praising this scheme in his 2019 speech at Kew Gardens, cautioned:

“Time is running out to make the difference we need; to repair the damage we as a species have done to the planet we have plundered.”


Does the Minister agree with the Environmental Audit Committee, which described the 2024 target as “disappointing”?

I also support Amendment 134 as the Government need to ensure that the scope of the scheme is as wide as possible, as the noble Earl, Lord Caithness, said. They need to embrace the all-in scheme; I can see why the on-the-go 750-millilitre criterion has been posited as an option, but a recent survey of stakeholders in the beverage container sector, which includes supermarkets, manufacturers and consumers, shows 69% support all-in while a mere 15% support on-the-go. To quote Michael Gove’s Kew Gardens speech again,

“I believe an ‘all-in’ model will give consumers the greatest possible incentive to recycle.”


The UK’s recycling record has been dire in recent years. This is an opportunity for us to slack off that shocking record and lead the world in recycling.

It is not hard to understand why all-in is the preference of so many. It allies simplicity and maximum benefit for the environment, and goes to the heart of the circular economy. Studies estimate that an all-in scheme will recycle 3.2 times as many drinks containers as an on-the-go one. The Minister knows only too well the limitations of kerbside collections. Recycling centres have problems separating out the wide variety of materials, and often there are problems finding ways to use the recycled material effectively. I ask the Minister to listen to manufacturers, which say that the specially designed reverse vending machines in the scheme must be much more effective at separating different materials and consequently creating a much higher quality of material for recycling. As a result, the use of recycled material will increase. As the noble Baroness, Lady Bennett, said, reverse vending machines are proving effective in other countries; obviously, the more types of materials and sizes of drinks containers included in the scheme, the more material will be recycled.

The extra materials covered by the amendment would allow clarity for both manufacturers and consumers and conformity with other nations in the UK. The cut-off point of 750 millilitres for drinks containers could distort the market in unthought-of ways. It could encourage consumers to buy bigger bottles of unhealthy fizzy beverages to cover the deposit’s charge, and manufacturers could invent methods to avoid the scheme. A distortion in the market leads to all kinds of unintended consequences. I will give an example from Germany: the exclusion of milk products from such a deposit scheme resulted in soft drinks companies introducing milk protein into their drinks to make sure they were excluded from the scheme. As a result, Germans who were lactose intolerant suddenly could not buy or drink soft drinks. Surely it would be better to make this deposit scheme as simple and wide-ranging as possible to avoid such a distortion.

One of the aims of the Bill is to dazzle the COP 26 with our world-leading environmental legislation. What better way to do that than by the Government putting a DRS on the face of the Bill which would be quick to take effect and wide-ranging in its impact? It would be a statement to the world that Britain intends to reduce its carbon emissions and litter problem and become a recycling superpower.

Baroness Parminter Portrait Baroness Parminter (LD)
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My Lords, we very much agree with what the noble Viscount, Lord Colville, said about the potential of this deposit return scheme to show us to be a global frontrunner as we move towards a more circular economy. We also very much support the opening amendment moved by the noble Baroness, Lady Jones of Whitchurch, which highlights the laggard nature of the Government in bringing forward this DRS, with the latest consultation showing that it will not come in until the end of 2024. We absolutely agree with her that the Government ought to get on with this by next year as an initial step.

We agree with almost all noble Lords that this must be an all-in scheme. There are costs to that, which the noble Earl, Lord Caithness, highlighted; another is the cost to local councils, as with an all-in system you remove aluminium, which is one of their most valuable recycling assets. However, we very much believe that the benefits outweigh those costs. We must resist those voices saying not to go down the all-in route. The Government’s impact assessment shows that there are very strong benefits to all-in, in the amount of recycling and the impact on cutting littering. That is important, but for me the issue mentioned by the noble Viscount, Lord Trenchard, about consistency with Scotland is the strongest case for all-in. We know where the Scots are going with their DRS; we feel very strongly that, to get the maximum benefits from DRS, there should be consistency with Scotland.

On that basis, although I listened to the very articulate arguments put forward by the noble Baroness, Lady Bennett of Manor Castle, on the case for a differential rate for sizes, I am not sure I want that put in the Bill at this stage, as there is an issue about ensuring that consistency with Scotland is uppermost in our mind. I therefore wish the Government to look at that again but do not support that going in the Bill at this stage, although I understand and accept the arguments she made. I hope the Government will look at them carefully. I look forward to the Minister’s reply.

Lord Goldsmith of Richmond Park Portrait The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)
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My Lords, deposit return schemes are another important reform introduced by the Bill to maximise our resource productivity. It was heartening to hear support across the House for their introduction.

This Government are determined to crack down on the waste and carelessness that destroy our natural environment. The noble Baroness, Lady Jones of Whitchurch, was right to point out in her opening speech that in our manifesto we committed to introduce a deposit return scheme this Parliament. We remain absolutely committed to delivering on that commitment. I thank her for Amendments 133 and 133A. We are currently analysing responses to our consultation from environmental NGOs, businesses and trade organisations on the deposit return scheme, which consulted on implementation timelines for 2024, the scheme design and the exact responsibilities of a deposit management organisation. This also included proposals on the size of containers and materials to be included. We will publish our response as soon as possible.

I appreciate that noble Lords are keen to see the introduction of a DRS for drinks containers introduced as soon as possible—so am I. But realistically, particularly following the impact of the pandemic, we need to make sure we balance this anticipation with the needs of businesses, which will need time to adapt their processes to a DRS. The impact assessment for this measure identified that the net costs to businesses were likely to be £266 million a year, so we need to make sure that we fully consider the time needed for them to adapt.