Schedule 8: Deposit schemes
Power to establish deposit schemes
- Paragraph 1 provides a general power for the "relevant national authority" (as defined in section 54(2)) to make regulations establishing deposit schemes.
- Sub-paragraph (1) provides that regulations can be made for the purposes of sustaining, promoting or securing an increase in recycling, reuse, or to reduce the incidence of littering or fly-tipping.
- Sub-paragraph (2) sets out what a deposit scheme is. This is a scheme under which a person supplied with a deposit item by a scheme supplier (this might be a producer, retailer or distributor) pays the supplier an amount (the deposit) and a person who gives a deposit item to a scheme collector (this might be a retailer or to another return point) is then entitled to be paid a refund in respect of that item.
- Sub-paragraph (3) sets out what a deposit item is. This is an item specified in regulations that is supplied by way of sale or in connection with the supply of goods or services. By way of example, this might be a drinks container or disposable cutlery.
- Sub-paragraph (4) sets out that a deposit scheme may specify the circumstances in which a deposit or refund is to be paid.
- Sub-paragraph (5) provides that "scheme suppliers" and "scheme collectors" are to be defined in the regulations, it provides that a scheme supplier and a scheme collector is someone who is a supplier or producer of a deposit item. A scheme collector may also be a scheme administrator. By way of example, a scheme supplier might be a producer, distributor or retailer of a drinks container. Scheme collectors, which might be a retailer or the scheme administrator, host return points, refund deposits and handle the material that has been collected.
- Sub-paragraph (6) provides that the deposit scheme may set a deposit amount specified in regulations, or an amount determined by the scheme administrator or an amount determined (and published) by the relevant national authority.
- Sub-paragraph (7) gives a definition of the word "specified".
Scheme suppliers
- Paragraph 2 provides that regulations may impose requirements on scheme suppliers, including:
- taking steps to ensure deposits are paid for the deposit item;
- how items are marked to identify them as deposit items;
- the retention of deposits; paying deposits to other scheme suppliers, scheme collectors or to a scheme administrator;
- ensuring a proportion of deposit items are returned to scheme collectors; keeping records in connection with the scheme; and
- providing those records or other information in connection with the scheme to a scheme administrator.
- The requirements may be different for different scheme suppliers.
Scheme collectors
- Paragraph 3 provides that regulations may impose requirements on scheme collectors, including:
- paying those who return a deposited item a refund;
- arranging for the recycling of any items returned or disposing of those items in accordance with the scheme; and
- ensuring a proportion of deposit items are returned to scheme collectors, keeping records in connection with the scheme and providing those records or other information in connection with the scheme to a scheme administrator.
- The requirements may be different for different scheme collectors.
Deposit scheme administrators
- Paragraph 4(1) provides that regulations may appoint or make provision for the appointment of a deposit scheme administrator.
- Sub-paragraph (2) sets out the functions that regulations may confer on the scheme administrator. These include:
- the registration of scheme suppliers and scheme collectors;
- charging registration fees;
- giving directions to the scheme suppliers and scheme collectors in relation to the requirements placed on them under the deposit scheme;
- ensuring a proportion of deposit items are returned to scheme collectors;
- arranging for the recycling of any items returned, or disposing of those items in accordance with the scheme;
- making payments to scheme collectors to reimburse them for any refunded deposits they have paid out;
- the retention of amounts that they have received under the deposit scheme, including determining how these amounts should be utilised;
- payments to other scheme administrators; and
- keeping records and providing these records to the relevant national authority.
- Sub-paragraph (3) specifies that, where there is more than one scheme administrator, different functions may be conferred on different scheme administrators by a deposit scheme.
- Sub-paragraph (4) provides that regulations may confer a power on the relevant national authority to give directions to a scheme administrator as to how the scheme administrator should exercise their functions under the scheme.
- Sub-paragraph (5) defines the word "specified" for this paragraph.
Enforcement
- Paragraph 5 makes provision for the enforcement of a "relevant requirement" (defined in sub-paragraph (5) as a requirement imposed by regulations or under a deposit scheme) and for offences and penalties.
- Sub-paragraph (2) provides that regulations may make provision for the appointment of an enforcement authority, the provision of records and information to persons specified in the regulations, a failure to comply with a relevant requirement to constitute an offence, about such offences, and the imposition of civil sanctions in respect of failures to comply with relevant requirements.
- Sub-paragraph (3) defines "civil sanction" as a sanction of a kind referred to in Part 3 of the Regulatory Enforcement and Sanctions Act 2008 ("the 2008 Act") – that is, a fixed monetary penalty, discretionary requirement, stop notice or enforcement undertaking.
- Sub-paragraph (4) outlines that regulations may include provision for the imposition of sanctions of that kind, whether or not the enforcement authority is a regulator or the conduct in respect of which the sanction is imposed is a relevant offence for the purposes of Part 3 of the 2008 Act, or the relevant national authority may make provision for the imposition of sanctions under that Part.
- Sub-paragraph (5) provides definitions as described above.
Interpretation
- Paragraph 6 defines words used in the Schedule.
