What's happened
Biffa's claim for over £50m damages from the Scottish Government over the failed deposit-return scheme was dismissed by a court. The case centered on a letter from Lorna Slater, which Biffa argued was a guarantee the scheme would proceed. The court found no breach of duty, highlighting political and legal complexities behind the scheme's collapse.
What's behind the headline?
The court's decision underscores the complex interplay between political commitments and legal obligations in environmental policy. Biffa's argument hinged on a letter from Lorna Slater, which they claimed was a guarantee, but the court found it to be a voluntary, non-binding assurance. This highlights how government communications, even when optimistic, do not necessarily create legal duties. The refusal of the UK government to grant an exemption under the Internal Market Act was the decisive factor in the scheme's failure, illustrating the limits of devolved policy ambitions within UK-wide legislation. The case reveals the risks companies face when investing in policy-dependent projects that are subject to political and legislative hurdles. Moving forward, clarity and legal certainty are essential for future environmental schemes to succeed, especially when public and private investments are at stake.
What the papers say
The Scotsman reports that Biffa's legal claim was dismissed, with Lord Sandison emphasizing that the letter from Lorna Slater was a voluntary act and not a guarantee. Sky News highlights Biffa's pursuit of damages and the court's focus on legal duties rather than political responsibility. Both sources agree that the scheme's collapse was primarily due to UK government interference and the refusal to grant an exemption under the Internal Market Act, which was a critical turning point. The Scotsman's commentary criticizes the scheme as a 'shambles' that politicians should be ashamed of, while Sky News notes Biffa's ongoing review of their legal options. The coverage from both outlets underscores the legal and political complexities that led to the scheme's failure and the significant financial and reputational costs involved.
How we got here
The Scottish deposit-return scheme (DRS) was intended to boost recycling by charging deposits on drinks. Biffa invested heavily in the scheme, which was delayed and ultimately collapsed after UK government interference. A key issue was the Scottish Government's need for an exemption from the UK Internal Market Act to include glass bottles, which was refused, leading to the scheme's failure. Biffa's legal action sought damages claiming a letter from Minister Lorna Slater in 2022 guaranteed the scheme's viability, but the court dismissed this, citing the letter as a voluntary statement without legal obligation.
Go deeper
More on these topics
-
Lorna Slater is a Canadian-born Scottish politician who is co-leader of the Scottish Greens, alongside Patrick Harvie. She assumed office on 1 August 2019 for a two-year term.
-
Biffa plc is a waste management company headquartered in High Wycombe, United Kingdom. It provides collection, landfill, recycling and special waste services to local authorities and industrial and commercial clients in the UK.