A company that will run Malta’s bottle recycling scheme has offered to waive a fee that small-scale operators say will bankrupt them, provided the government offers them financial assistance. 

In a letter to Environment Minister Aaron Farrugia, BCRS Ltd. said that it wanted the government to “provide a financial contribution” to its capital expenditures and to waive a €230,000 annual licencing fee for the first year of operation. 

BCRS was responding to a letter sent to the minister by a number of small-scale beverage importers and producers last week, in which they warned that the €100-per-beverage-type fee would financially cripple them.

Craft importers and producers say the fee is unfair, as it applies equally to a beverage sold in limited quantities as to ones sold by the truckload, and could run into tens of thousands of euros for craft beer importers. 

350 such bottle recycling machines will be installed as part of the scheme.

The beverage recycling scheme, which is scheduled to become operational in April, will see 10c added to the cost of applicable beverages, with consumers able to recoup that charge by depositing empty containers at vending machines at key supermarkets and points across Malta and Gozo.

It has been entrusted to a private operator, BCRS Ltd., whose directors form part of Malta’s largest beverage companies, from Farsons to Marsovin and General Soft Drinks, among others. 

The company is developing a facility at Ħal Far to process the recycled beverage containers, which it will then be entitled to sell overseas. 

Small-scale players have said they fear that the large producers and importers behind BCRS will use the recycling scheme to “stamp out competition”, and complained to the minister that the company had been unwilling to negotiate with them.  

The Ħal Far clearing facility being developed. Photo: BCRS

BCRS responds with a letter of its own

BCRS responded in a letter to the minister dated February 4 and which was sent to the media. 

In it, the operator said that the scheme also includes administration fees which are charged based on the number of beverage containers placed on the market.  It defended a decision to leave wines and spirits out of the scheme, saying this was in line with what other countries with similar successful models had done.

350 such bottle recycling machines will be installed as part of the scheme.

The company said that operating the system would require an IT network linking 350 vending machines together with a secured database of registered beverage containers.

It said the €100 fee “should technically be higher” but said it would be willing to waive the payment, if the government:

1. Agrees to properly enforce the system to ensure all beverage importers complied with the system;
2. Waives a €230,000 annual licencing fee due in the first year of operation;
3. Financially contributes to BCRS’ capital expenditure, which it said has topped €17 million without benefitting from EU funding;
4. Helps BCRS with its public education campaigns.

BCRS said that it would be operating on terms less advantageous than those enjoyed by existing waste packaging schemes.

“If the current waste packaging schemes (GreenPak and GreenMT) fall short of stipulated targets, it is the members who pay the price and not the waste recovery scheme,” BCRS said, “yet in the case of BCRS Malta Ltd., any shortfall from targets are subject to the company incurring penalties.”

Any unilateral change to the scheme at this stage risked “seriously compromising” its success, the company said.