Judge throws out deposit return scheme claim – Daily Business

A court has thrown out a £51.4 million claim for compensation after a Scottish government recycling scheme had to be abandoned.

Waste collection company Biffa claimed a letter from the former Circular Economy minister Lorna Slater gave them assurance that the scheme would go ahead.

It invested millions in collection equipment and vehicles and said it expected to make £1148.m in profits over the course of a 10-year contract with Circularity Scotland, the non-profit set up to administer the scheme.

The scheme collapsed following a dispute with Alister Jack, the Scottish Secretary at the time, who said the scheme would only be given the go-ahead if changes were made.

These included the removal of glass, standardised labelling, and a uniform deposit charge across the UK.

Green MSP Ms Slater, who had steered the project for the Scottish government, was forced initially to delay, and ultimately to abandon it.

Biffa pursued its claim for damages alleging that ministers were negligent in misleading the company and that they owed it a duty of care.

Circularity Scotland fell into administration, leaving debts of more than £86m, including £8m owed to the state-owned Scottish National Investment Bank. Its contract with Biffa was terminated.

However, in a judgment today in the Court of Session, Lord Sandison rejected the waste firm’s claims describing the way Biffa interpreted the letter as “wishful thinking” on a par with trying to turn “base metal into gold”.

A spokesperson for the Scottish Greens said: “This case has shown the worst of Westminster and the contempt the Tories have for the Scottish Parliament and for our environment. 

“MSPs voted to introduce a recycling scheme, with businesses investing money to make it happen. 

“There are bottles, cans and glass littering our parks, beaches and streets. This scheme would have led to more of them being recycled.

“Devolution is not working for Scotland. The fact that one person in Westminster was able to topple the scheme against the will of the Scottish Parliament underlines the urgent need for our country to have the same powers as every other self-governing nation.”

A Biffa spokesperson said: “We note today’s decision and are reviewing our position with our legal advisors.”