More than a quarter of retailers participating in the national Deposit Return Scheme (DRS) are experiencing financial losses due to its operational costs, according to testimony to be presented to the Oireachtas Climate Committee. The scheme, which added approximately 15 cents to the price of plastic bottles and cans, allows consumers to reclaim this deposit upon returning the items to designated machines in shops.
Despite the program's aim to be cost-neutral for retailers, the Convenience Store and Newsagents’ Association (CSNA) states that many smaller businesses are not recouping their expenses. Sara Orme, President of the CSNA, which represents about 1,000 retailers, is set to inform the committee that the scheme is "crippling" small businesses. Retailers are responsible for providing space for reverse vending machines (RVMs), maintaining their cleanliness and functionality, managing associated litter, and endure lengthy compensation wait times, all for a handling fee of 2.2 cents per container.
Concerns have also been raised regarding the unclaimed deposits. In 2024 alone, consumers left approximately €66.7 million in unredeemed deposits through the DRS. Re-Turn, the scheme operator, states this money is reinvested into the program, but has rejected requests from smaller retailers to increase the handling fee. Orme pointed to a similar scheme in the UK and Northern Ireland that employs a tiered compensation model to better support small and medium-sized retail outlets.
Re-Turn maintains that an independent review, validated by EY, concluded the 2.2-cent handling fee was fair, though it identified a need for additional support for certain retailers. The company is introducing a targeted support of €2,000 per site for retailers processing between 250,000 and 500,000 containers annually. A review mechanism is also being established for retailers who feel the current proposals do not sufficiently address their individual circumstances.
However, Orme argued that this support structure does not adequately assist smaller shops handling fewer than 250,000 containers per year. Additional costs, including annual machine maintenance fees that can range up to €1,000, electricity, and initial setup expenses for shelters, civil works, and electrical modifications, further strain small businesses. Orme suggested that an increase in the handling fee to 3.0 cents per container would significantly benefit smaller shops.
Retailers also bear the cost of RVMs, which can cost around €30,000, including housing, and typically need replacement every five years. Gus O’Hara, a Spar shop owner in Clontarf, Dublin, described the machines as a burden, noting the significant staff time required for frequent emptying, cleaning, and maintenance. He stated that for smaller businesses, breaking even on the scheme is nearly impossible. The daily requirement to attend to the machine multiple times can necessitate additional staffing to ensure the shop remains adequately covered, further increasing operational expenses.