Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

The Senator is correct and her questions are excellent. Many people remember, with some nostalgia, that they could get money back for bottles. Just like the Senator I recall going to the local pub before I was of an age where I was allowed in and returning bottles and getting money for them. It was a clear link and reduced the amount of litter on the ground. People understand the concept. They know that a DRS is good and has worked in the past. A lot of principles within the circular economy involve a return to practices that our parents would have engaged in such as repairing clothes, shoes, etc.

On the specific point of a digital returns scheme, this is something that we have looked at and the industry has lobbied for same.With that in mind, the regulations we issued allow for a digital returns scheme. It is possible within those regulations to allow for variable pricing. I understand the benefits that can come from offering different amounts of money depending on how recyclable a product is. I can see the advantages.

The challenge for me is that such a scheme, as far as I am aware, is not commercially operating anywhere. I am bringing in a scheme which will operate for 5 million people in one go. I need to bring in something I know will work. I know the industry has carried out a pilot scheme in one area, which is a good first step. There were 200 people involved but I am bringing in a scheme for 5 million people.

The programme for Government marked a turning point in how Ireland approaches waste management and the circular economy. Instead of narrowly focusing on how we treat and dispose of the waste we produce, the Government is committed to building a circular economy where waste is minimised, economic growth decoupled from resource consumption and the value of goods and materials retained in our economy for as long as possible.

Reforming our use of plastic is one of the key measures outlined in the Waste Action Plan for a Circular Economy. Tackling our excessive use of single-use plastics is an urgent priority here and across the EU. Under the 2019 single-use plastics directive, Ireland must achieve a collection target of 90% recycling for plastic bottles by 2029, with an interim target of 77% by 2025. A report prepared for my Department concluded that a deposit return scheme, DRS, is the only feasible way to achieve the required levels of performance under the single-use plastics directive.

In September 2020, the Waste Action Plan for a Circular Economy set out a roadmap for the introduction of a deposit return scheme in the third quarter of 2022. To deliver on this objective, a public consultation on the design options of such a DRS was completed in 2020 and a working group of Department officials and stakeholders was established to discuss the implementation of the scheme. The group met on a number of occasions and, arising from these discussions, a second public consultation focusing on the preferred model was completed early in 2021. The preferred model that emerged is based on a return to retailer in respect of plastic bottles and aluminium drinks cans. The beverage industry will fund and operate the scheme.

The separate collection DRS regulations 2021 give effect to the outcome of this policy development. They were published in November and provide the framework for the approval of a scheme operator.

The regulations introduce a requirement on producers to establish a DRS or to appoint a body to operate it on their behalf. The deposit return scheme will apply to beverage bottles manufactured from polyethylene terephthalate, PET, with a capacity of up to 3 l and beverage containers manufactured from aluminium or steel with a capacity of up to 3 l. They also introduce an application and approval process for the appointment of an approved body to operate the scheme, set out the functions to be carried out by such an approved body, the obligations required of producers, retailers and return points and make provisions relating to the deposit to be paid.

While these regulations represent a significant milestone in the introduction of a DRS, some important issues remain to be addressed in further regulations. Some technical and transitional matters required further considerations, including planning exemptions for DRS infrastructure and VAT matters and the level of the deposit zero rated in the November 2021 regulations, enforcement arrangements and some limited exemptions.

The next milestone in the project is the appointment of an approved body to operate the scheme. I understand from industry representatives that in recent weeks a company was incorporated which will design and propose a deposit return scheme for my approval. While industry has noted that the timeframe for introduction of quarter 3 of 2022 is ambitious, my Department is monitoring progress closely.

I have allowed further time to consider the level at which a deposit should be set and to consider matters such as whether the deposit should be variable and what provisions should apply to beverage containers sold as part of a multipack. Senator McGreehan raised this issue and I take her point. However, I will introduce further regulations prior to the introduction of the scheme to establish, among other things, the level of deposit for the materials to be collected.