Small shops need more Deposit Return Scheme support, says Westmeath Minister

A Government Junior Minister has said small and independent shops should be given more incentives by the State to take part in the new Deposit Return Scheme for cans and plastic bottles.

The scheme was introduced yesterday (February 1), but Fine Gael Minister of State Peter Burke said Government supports for smaller businesses who wish to take part in it don't go far enough.

In a statement today, he said the cost of installing reverse vending machines to handle the bottles and cans may be too high for some shops to afford.

"The Deposit Return Scheme is set to impact on litter, as well as combatting single-use plastics, but I feel strongly that all retailers should be encouraged to be a participating outlet where customers can bring back their empty bottles and cans," stated Minister Burke.

"I know that many small shops are anxious to get involved and play their part to deliver on recycling targets but they need support and I have raised this in the Dáil.

"Essentially, there is support from consumers for the scheme, with 84% of those polled being positive, but for a successful scheme we need a critical mass of retailers to participate and sign up.

"As it stands, retailers will receive a handling fee for each container they take back. Handling fees are intended to offset the cost of collection infrastructure, retail floor space, staff costs and security.

"While this will undoubtedly assist retailers, it does not go far enough for the smaller retailers.

"The cost of the reverse vending machines is significant and may prove a prohibitive step for some shops who would like to offer this service to customers but cannot afford to.

"I would like to see the cost of supply and installation of the machines covered definitively for businesses, for example under the Accelerated Capital Allowance Scheme.

"I have met with Darren Brennan of Centra in Castlemaine Street, Athlone, and I know he has installed the machine at great cost to the business."

The Mullingar politician added that his colleague, Minister Neale Richmond, was continuing to advocate for retailers to be supported with the costs of the reverse vending machines.

"Businesses will soon be availing of the €257m Increased Cost of Business (ICOB) grant, which was provided for by Government in the 2024 Budget.

"With payments due in the first quarter of 2024, businesses who pay up to €30,000 in commercial rates will receive a cash injection of up to €5,000.

"While this is very welcome, further supports are needed to help retailers with the costs associated with the Deposit Return Scheme. A mobile App system could also streamline the process for retailers.

"A guaranteed financial pathway to incentivise smaller retailers to participate in the Deposit Return Scheme must be provided for if we are to get to our target of a 90% rate of recycling our bottles," Minister Burke concluded.