A waste firm suing the Scottish government over its botched bottle return scheme has said it was “provided with certainty” that it would go ahead.
Biffa Waste Services is seeking £166m in damages over the decision to delay the deposit return scheme (DRS) in 2023.
The firm’s chief executive, Michael Topham, said a letter in May 2022 from then government minister Lorna Slater had offered 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 told the Court of Session in Edinburgh on Tuesday.
“I read it as a very unequivocal reassurance about their commitment to the scheme.”
Mr Topham claimed it applied “pressure somewhat on us to conclude the contract and move ahead”. Ms Slater is due to give evidence to the court in the coming days.
The Scottish government changed its plans for the DRS when UK ministers used the Internal Market Act to rule glass bottles could not be included.
A UK-wide scheme is planned but isn’t expected to begin before 2027.
Circularity Scotland, which was set up to administer the DRS, fell into administration in June 2023 and Biffa’s contract was terminated.
The firm said it expected to make profits of £114.8m over 10 years from the contract and invested £51.4m in assets such as sorting machines.
The government’s lawyers have previously said the decision to start spending money was a “commercial risk” the firm had “chosen to take”.
Mr Topham said he hadn’t been told of the UK government’s position on internal market rules that could have affected the scheme going ahead.
He said if he had been informed, he would have made signing the contract conditional on having an exemption in place.
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Mr Topham was asked about the importance of the letter from Ms Slater – the former minister for green skills, circular economy and biodiversity – as Biffa had also chosen to take out insurance with a premium of more than £3m.
He told the court they purchased it due to concerns about delays to the scheme.
Gerry Moynihan KC also questioned Mr Topham on the absence of the letter in board meeting notes the following day. Mr Topham said he had told the board about the letter.
The hearing is set to last eight days and will hear evidence from Ms Slater and Lord Alister Jack, who was Scottish secretary at the time the scheme was shelved.
