Biffa aims to recover losses from its failed Deposit Return Scheme investment as legal action proceeds.
Edinburgh: Biffa is taking legal action against the Scottish Government. This follows a recent court ruling by Lord Clark. The company wants to recover money lost from its investment in the Deposit Return Scheme.
The Scottish Government had its own plan for the scheme. However, it was delayed to align with a UK-wide initiative. They blamed Westminster for not allowing glass in the scheme, which they say caused the hold-up.
On the other hand, the UK Government claims the delay was due to poor planning by Scottish ministers. Biffa had already invested heavily, buying new trucks and hiring staff.
They are seeking to recover £55 million and lost profits. Initially, Biffa expected to make over £100 million from the scheme.
Meanwhile, the UK Government has postponed its own scheme until October 2027. New legislation for a bottle-return scheme in England and Northern Ireland was enacted recently.
The Scottish Government plans to introduce separate legislation to align with this scheme. Their lawyers argue that Biffa took a commercial risk by investing early.
In court, Lord Clark stated that the case will proceed. He outlined what Biffa needs to prove for their claims to succeed. A spokesperson for the Scottish Government said they cannot comment on ongoing litigation.
