Legal doubt puts new deposit-return scheme at risk

Legal uncertainty means the new deposit-return scheme may not take effect on September 1, Health and Energy Minister Eyðdis Hartmann Niclasen told Kringvarp Føroya.

The Løgting, the Faroese parliament, approved legislation on a deposit system for containers on May 13, 2024. The law was intended to allow people to return all types of deposit-bearing containers at one place instead of visiting several different shops.

The legislation was to be implemented through regulations. A draft regulation was sent out for consultation in June, with the scheme initially planned to begin on September 1.

However, it is now unclear whether the law itself must be amended. Niclasen said the issue emerged when the legislation was being tested for the first time.

She said a technical point needed to be resolved to ensure that the scheme would not affect sellers’ prices. One possibility was that value-added tax had been applied to the deposit, she said, adding that the price structure should not be changed by the legislation.

Niclasen said she expected the scheme to begin soon. The necessary arrangements with IRF are ready, and the station has been established, she said. Only some adjustments remain to be made.