Biffa is suing the Scottish ministers for an eye-watering £200 million.
This move follows the collapse of Scotland’s flagship bottle deposit return scheme.
Biffa’s Claim
Biffa has taken legal action, filing a case at Scotland’s highest civil court, the Court of Session. They are seeking to recover a £150 million loss along with subsequent lost profits due to the collapse of the SNP and Greens’ flagship deposit return scheme.
Biffa’s legal representative, Roddy Dunlop KC, contends that the Scottish government misrepresented the scheme’s viability. This led to Biffa investing heavily in vehicles and equipment.
Allegations Against the Scottish Government
Biffa claims the government provided personal assurances from Green Party co-leader, Lorna Slater. These assurances led Biffa to invest £55 million in preparation for the scheme.
However, the scheme was scrapped in June last year after the UK government refused to grant full exclusion from the Internal Market Act. This prevented Scotland from including glass in its operations.
Biffa believes the Scottish government negligently misrepresented these assurances and failed to mention the need for UK Internal Market Act approval.
Investment and Losses
A source revealed to the Sunday Mail newspaper that Biffa agreed to the contract based on
written assurances from Lorna Slater about the scheme’s deliverability and the Scottish government’s commitment to it.”
Biffa reportedly invested over £65 million in preparation for the scheme. This investment included expenditures on vehicles, equipment, and other logistical support.
Scottish Government’s Response
A Scottish government spokesman declined to comment on the ongoing litigation.
The government had previously aimed to boost recycling with this scheme by imposing a 20p deposit on every drinks container. This deposit would be refundable upon return of the container.
Contractual Obligations
Under a ten-year contract, Biffa was appointed to collect all recycled containers across Scotland. They anticipated profits exceeding £100 million.
However, with the cancellation of the scheme, these expected profits have evaporated.
The spokesman added that Biffa executed their role in good faith, considering the scheme was mandated by the Scottish government.
Current Legal Standing
Biffa has now reviewed its position and is seeking appropriate compensation for the incurred losses. They have initiated the legal process to recover these damages.
The Scottish government continues to stay tight-lipped about further details, citing ongoing legal proceedings.
Impact on Recycling Efforts
The deposit return scheme had promised to significantly enhance recycling efforts across Scotland. By including a deposit on each drinks container, it aimed to encourage consumers to return containers for recycling.
The outcome of this legal battle remains uncertain.
Regardless, it highlights the complexities and risks involved in governmental schemes.
The case underscores the importance of clear communication and proper planning in public initiatives.