Around a third of Scotch whisky distilleries face being barred from selling their products north of the border after refusing to sign up to the Scottish Government’s controversial deposit-return scheme.
Industry insiders said that only two-thirds of Scotch whisky producers had registered with the initiative - which will force buyers to pay a 20p deposit on drinks containers - by Tuesday's deadline.
Only 664 drinks companies chose to sign up out of an estimated 4,500 who were eligible.
This was despite Lorna Slater, the Green minister in charge of the deposit-return scheme (DRS), previously warning that firms that failed to sign up "in principle would not be able to sell into the Scottish market".
The Telegraph states that, in an "extraordinary" performance at Holyrood, Ms Slater refused six times to confirm that 84% of producers had not registered after being directly asked by opposition MSPs to provide a figure.
The minister claimed to be "delighted" with the response, stating that producers responsible for more than 90% of the total volume of drinks containers sold in Scotland had registered. But opposition politicians pointed out that large, multinational drinks groups, who could easily afford the charges, were "always going to sign up"
Bankruptcy fears
However, hundreds of smaller Scottish firms have expressed fears the costs could bankrupt them.
Announcing the deadline was being extended until the planned launch date of the DRS on August 16, Ms Slater said companies would be allowed to continue signing up "and I encourage them to do so, so that they can continue to trade in Scotland”.
Liz Cameron, chief executive of the Scottish Chambers of Commerce, accused the politician of completely ignoring concerns from Scottish firms.
She went on: “Our call was to pause the scheme and redesign it with the business community - and that call has been rejected by the minister.
“It’s been clear to the business community for some time that operating this poorly-designed scheme in its current form is impossible and is adding unnecessary cost pressures on businesses.
“We are not alone in voicing our concerns. All three candidates for the SNP leadership have expressed their reservations too.
Call for DRS to be paused
“It is abundantly clear to all involved that the roll-out of the scheme has to be paused immediately and then reviewed in partnership with the business community.
“The scheme must be made cost-effective for firms and better aligned with DRS plans in the rest of the UK.”
There were also calls for the DRS to be delayed until the conclusion of the SNP leadership contest on March 27.
Fergus Ewing, a former Scottish Government cabinet minister, said Nicola Sturgeon's successor could halt the initiative from mid-April but by then convenience stories will have incurred an extra £50million of costs.
SNP and Green ministers want to boost recycling rates by forcing buyers to pay a 20p deposit on single-use drinks containers, including cans and bottles, that would be refunded when returned.
Andrew McRae, policy chair of the Federation of Small Businesses in Scotland, said he was "bitterly disappointed" the Scottish Government was pressing ahead with the scheme.
'Sabotage' claim refuted
Ms Slater, the Circular Economy Minister, accused Scottish Secretary Alister Jack of trying to "sabotage" the scheme by failing to exempt it from the Internal Market Bill. This would mean producers in the rest of the UK could continue trading in Scotland without taking part in the scheme, putting its financial viability in severe jeopardy.
She claimed that the Scottish Government had been seeking an exemption since July 2021.
But Mr Jack reiterated that no formal request for an exemption had been received and correspondence published by the Scottish Government did not show one.
A UK Government source said: "This is nonsense from the Scottish Government and a desperate attempt to shift the blame for a fiasco of their own making."