Dáil Éireann Debate, Monday - 11 September 2023
97. Deputy Matt Shanahan asked the Minister for the Environment, Climate and Communications the proposed workings of the new bottle and can deposit return initiative; where vending machines will be situated to collect the returns and pay out the redemption deposit; and if he will make a statement on the matter. [37830/23]
View answer98. Deputy Matt Shanahan asked the Minister for the Environment, Climate and Communications if research has been conducted to understand whether the proposed policy in relation to the bottle and can deposit retention scheme will favour large brand retailers as opposed to small owner operator businesses which will likely not have the financial capacity to contribute to purchase and maintenance of redemption vending machines; what concerns this gives rise to within his Department in terms of competitive advantage favouring the large scale multiples; how his Department proposes to level the playing field in terms of this policy; and if he will make a statement on the matter. [37831/23]
View answerI propose to take Questions Nos. 97 and 98 together.
The Government is introducing a national Deposit Return Scheme (DRS) to encourage more people to recycle drinks containers. DRS works by charging anyone who buys a drink a small deposit for the plastic bottle or can that it comes in. The customer gets this money back when they return the drinks container to a retailer or other collection point to be recycled.
Regulations to establish a national DRS were signed in November 2021 and, in July 2022, I approved Deposit Return Scheme Ireland (trading as Re-turn) as the DRS operator. Re-turn is a not-for-profit, industry-led body representing beverage producers and retailers. The planned go-live date for DRS is 1st February 2024.
Retailers will play a vital role in DRS and are obliged to charge the consumer a deposit for every drink sold, to take-back the empty drink container and refund the deposit to the consumer when it is returned for recycling. Retailers have two options when offering take-back services:
• Manual collection where retailers will store returned containers in bags or similar.
• Automated collection through the use of reverse vending machines (RVMs). RVMs can be purchased or leased.
The decision on whether to install an RVM or operate a manual collection system lies fully with each retailer. RVMs can be installed in or at a retail premise and planning exemption regulations were signed by the Minister for Housing, Local Government and Housing in May 2023 to make it easier for retailers to install RVMs.
All retailers will receive a handling fee from Re-turn for participating in the DRS. Handling fees are intended to offset the cost of collection infrastructure, retail floor space, staff costs and security. The level of handling fee payable is determined by Re-turn and is subject to independent, third-party verification.
In addition to handling fees, a number of other supports are in place to assist small retailers, including exemptions from take-back services and financial support for installation of RVMs. Details of these supports, as well as other useful information to help retailers prepare for DRS, is available at re-turn.ie/retailer/.
