New deposit return scheme means red tape and headaches for small businesses

The new deposit return scheme for drink containers means ‘more headaches and more paperwork’ for small businesses. 

That is according to Cllr Ciaran Brogan (FF) who was one of a number of councillors to raise concerns about the ReTurn scheme which comes into effect on February 1.

“It is not as simple as it sounds,” said Cllr Brogan at a meeting of Donegal County Council on Monday. “It is another tax, another cost.”

In response to the idea that the scheme would reduce roadside littering, the councillor said: “As regards the people that does the illegal dumping, this will not stop them. 

“It is an additional cost for many businesses. More headaches and more paperwork for them to overcome.”

Councillors received an overview of the scheme from Michael McGarvey, Director of Water and Environment at Donegal County Council. 

The main provisions are that plastic, aluminium and steel drinks containers between 150ml and three litres will carry a deposit charge at point of purchase. This will be refunded on return of the product which bears the ReTurn logo and which has an intact bar code. 

Containers from 150ml to 500ml will carry a deposit of 15c, with larger containers having a 25c deposit. This will be returned to the customer in the form of a voucher or cash. 

All businesses selling such products - including shops, restaurants and online retailers - must register. Some, such as restaurants and small shops can apply for an exemption from accepting returns. 

“This is a really important scheme,” said Mr McGarvey. “We are trying to move away from the ‘take, make, dispose’ mindset.”

There was a degree of welcome for the scheme in terms of reducing roadside littering. However, a number of councillors echoed Cllr Brogan’s concern for small businesses. 

Cllr Patrick McGowan (FF) said: “I welcome this; it is something we have been talking about for years. It will deal with some aspects of dumping where you have people going into restaurants and shops and buying a bottle of Lucozade and you see it lying a mile out the road. It is unbelievable on every road.”

The councillor was one of several to praise the Tidy Towns groups and thousands of volunteers removing roadside litter around the county. 

But he added: “They are saying if you have a derogation, that you have to put a sign up saying where the nearest shop is. Are you going to have to start advertising other people’s business?”

Cllr Johnny McGuinness (FG) raised a number of concerns about the impact on small businesses. 

“A lot of small businesses are already on their knees with the increase to the minimum wage and exponential rise in energy costs,” he said. 

“This is a refuse collection being imposed on the small retailer. If you don’t have the capacity to take them yourself, not only are you losing that business, you are directing customers to a larger shop that can take them. 

“Or you may have a large amount coming in that were bought in a larger store and you have to pay out when the transaction didn’t take place in that shop at all. 

“I am supportive of the initiative but I am not sure if the local shop is the right conduit. It is just another layer of red tape that the small retailer has to carry out from beginning to end. And while that is taking place, the small shop is paying the hourly wage for the employee to do this.”

Cllr Nicholas Crossan (Ind) raised concerns about storage space in business premises.

Cathaoirleach of Donegal County Council Martin Harley (FG) said: “One of the multinationals spent €15m putting in their machines and they are going to be looking to get their money back. It is a big challenge for small businesses.”

Cllr Michael McClafferty (Ind) expressed concern that shop owners who couldn’t afford a machine would be potentially at a loss. 

Michael McGarvey acknowledged and addressed  the concerns and said that the issues could be reviewed once the scheme had been running for a few months. He pointed out that at present, only one in three drinks cans and bottles sold in Ireland are currently being recycled.