A waste agency suing the Scottish authorities over its botched bottle return scheme has stated it was “provided with certainty” that it could go forward.
Biffa Waste Companies is in search of £166m in damages over the choice to delay the deposit return scheme (DRS) in 2023.
The agency’s chief govt, Michael Topham, stated a letter in Might 2022 from then authorities minister Lorna Slater had provided assurances the scheme would proceed.
“It was so unambiguous and emphatic. It provided me with certainty there was no doubt it was going ahead,” he instructed the Court docket of Session in Edinburgh on Tuesday.
“I read it as a very unequivocal reassurance about their commitment to the scheme.”
Mr Topham claimed it utilized “pressure somewhat on us to conclude the contract and move ahead”. Ms Slater is because of give proof to the court docket within the coming days.
The Scottish authorities modified its plans for the DRS when UK ministers used the Inside Market Act to rule glass bottles couldn’t be included.
A UK-wide scheme is deliberate however is not anticipated to start earlier than 2027.
Circularity Scotland, which was set as much as administer the DRS, fell into administration in June 2023 and Biffa’s contract was terminated.
The agency stated it anticipated to make income of £114.8m over 10 years from the contract and invested £51.4m in property corresponding to sorting machines.
The federal government’s attorneys have beforehand stated the choice to begin spending cash was a “commercial risk” the agency had “chosen to take”.
Mr Topham stated he hadn’t been instructed of the UK authorities’s place on inner market guidelines that might have affected the scheme going forward.
He stated if he had been knowledgeable, he would have made signing the contract conditional on having an exemption in place.
Mr Topham was requested concerning the significance of the letter from Ms Slater – the previous minister for inexperienced abilities, round financial system and biodiversity – as Biffa had additionally chosen to take out insurance coverage with a premium of greater than £3m.
He instructed the court docket they bought it resulting from considerations about delays to the scheme.
Gerry Moynihan KC additionally questioned Mr Topham on the absence of the letter in board assembly notes the next day. Mr Topham stated he had instructed the board concerning the letter.
The listening to is ready to final eight days and can hear proof from Ms Slater and Lord Alister Jack, who was Scottish secretary on the time the scheme was shelved.
