The minister who oversees Scotland’s controversial deposit return scheme has avoided questions over compensation to businesses if it fails to come to fruition.

Lorna Slater, the minister for green skills, circular economy and biodiversity, was quizzed at the Scottish Parliament on Tuesday.

Responding to Scottish Tory deputy leader Meghan Gallacher, Ms Slater, who is also co-leader of the Scottish Greens, said: “We are committed to our deposit return scheme, which is critical to reducing litter, tackling emissions and increasing recycling.”

She added: “The missing piece of the jigsaw is for the UK government to agree an exclusion from the Internal Market Act.”

The controversial scheme was due to start in August but was pushed back to March 2024 after Humza Yousaf was installed as first minister.

The scheme will see shoppers north of the border pay an extra 20p when purchasing drinks in a can or a bottle, with this deposit then returned when the empty container is brought back for recycling.

Industry figures have argued it will impose potentially fatal costs on their businesses and create a trade barrier between Scotland and the rest of the UK. But environmental campaigners say it will cut carbon emissions and reduce litter.

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The Scottish government is seeking an exemption from the UK government for the scheme in Scotland under the Internal Market Act – which regulates trade in the different parts of the UK following Brexit.

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The exemption is needed as the scheme in Scotland is due to begin ahead of similar initiatives in England, Wales and Northern Ireland.

Ms Slater earlier warned that if no exemption is secured by the end of May, the Scottish government will be forced to make a “proactive decision” as to whether its scheme is “viable”.

Ms Slater, Scottish Greens MSP for Lothian, said: “The UK government needs to now do the right thing and agree an exclusion now to give businesses the certainty they need in order to prepare for the launch in March, and allow investment made by businesses to be put to good use.”

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On Monday, Scottish Secretary Alister Jack flatly rejected a suggestion from Mr Yousaf for the UK government to pick up the bill if the scheme cannot go ahead as planned.

He told MPs on the Commons Scottish Affairs Committee that he had yet to receive the “proper impact assessments” previously asked for from Holyrood ministers that would allow a decision to be taken on whether the scheme should be exempt from the UK Internal Market Act.

Ms Slater rejected Mr Jack’s claim.

She said: “Simply it is not true that the information required under the common framework has not been shared.”

The minister added: “We have supplied all the required information – and more – to agree an exclusion from the Internal Market Act.”

Ms Slater highlighted that the Scottish government had received correspondence from Michael Gove, secretary of state for levelling up, housing and communities, on Tuesday which thanked Holyrood for its updated analysis and confirmed the UK government “is currently processing and reviewing that information”.

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In response to criticism from MSP Willie Rennie that she “needs to go back to the drawing board” and “come up with a new scheme”, Ms Slater said: “Industry have invested hundreds of millions of pounds toward this scheme.

“They have recruited people, there are IT systems under way, reverse vending machines are being installed, sorting centres are being set up, the vehicles and logistics are being set up.

“We are all systems go. We just need that last little piece of the Internal Market Act exemption and we will carry on with the launch.”

When again quizzed by SNP MSP Fergus Ewing and Scottish Tory MSP Stephen Kerr, Ms Slater said the question of compensation was a “hypothetical one at this point”.

She said: “I am working towards getting this scheme launched and making sure that the scheme is a success.”

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