Deposit return scheme ‘designed to hit’ small retailers amid lost profits

The Irish Government’s deposit return scheme is causing chaos for shop owners, and smaller outlets are suffering the most, according to the body representing fuel retailers.

The Irish Petrol Retailers Association has lodged a complaint about the scheme with the European Commission, alleging it breaches EU competition law.

It has also outlined a range of other concerns and claimed the scheme is having a devastating impact on some Irish shops and fuel stations.

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“We believe this scheme is designed to hit smaller independent retailers the most,” said an IPRA spokeswoman.

A number of “big price increases” on all soft drinks has also eroded profit margins across the board by up to five percent, while the expense of getting Re-turn machines and providing additional staff hours to run the scheme is also hitting retailers in the pocket.

They feel there is no alternative, however, according to the IPRA, because “opting out means you are required to direct your customers to your competitor” for returning.

A spokesman for Re-turn said: “Alongside Ireland, there are currently 14 other EU countries operating Deposit Return Schemes.

“Re-turn is fully compliant with EU guidelines and has not been contacted regarding alleged breaches of EU competition law.”

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