Waste management firm to sue over DRS debacle
WASTE management firm Biffa has confirmed it is seeking legal action against the Scottish Government following the collapse of the Scottish deposit return scheme (DRS).
Biffa is set to go to court to recover a reported £200million from Scottish ministers, claiming losses sustained from investing in the scheme as well as a loss of profits for the company.
A spokesperson for Biffa said: “Biffa was selected by Circularity Scotland Limited (CSL) as the logistics partner for the delivery of the Scottish Deposit Return Scheme and invested significant sums to support its timely and successful implementation.
“This was done in good faith and on the expectation and understanding that the delivery of the scheme had been mandated by the Scottish Government.
“Having carefully reviewed our position with our advisors, we can confirm that we are taking legal action to seek appropriate compensation for the losses Biffa has incurred.
“Given the legal action, we are unable to comment any further at this time.”
The waste management firm was named as the Official Logistics Provider for DRS in 2022 by the now defunct scheme administrator Circularity Scotland.
The appointment was, at the time, reported to have created 500 jobs in Scotland across collecting, sorting and counting of waste materials.
Some 60 of these jobs were set to be created from a new recycling site in Aberdeen after Biffa announced a £7.7million investment into the transformation of a former engineering depot on the Badentoy Industrial Estate.
Scotland’s DRS was scheduled to go live in March of this year but was eventually delayed to fall in line with the UK-wide go-live date, which is now set for October 2027.
The initial delay saw Scottish retailers similarly calling for compensation from the Scottish Government, which former first minister Humza Yousaf denied.
The Scottish Government declined to comment on the ongoing litigation.
