Re-turn declines to increase handling fee for retailers despite scheme costing them money

Darragh Mc Donagh

Re-turn has decided against increasing the 2.2 cent handling fee paid to retailers for each container returned through their stores, despite complaints from shop owners that the scheme is costing them money.

The company, which operates the Deposit Return Scheme (DRS), had told retailers that it would review the handling fee in 2024, and reiterated this commitment at a Re-turn Retailers Forum last November.

However, Re-turn has opted against increasing the handling fee after commissioning an independent review by a specialist consultancy firm, the findings of which were validated by EY.

The company told retailers in correspondence obtained under freedom of information laws that the review had been commissioned “as part of our commitment to transparency and continuous improvement”.

Re-turn, which recorded a pre-tax surplus of €51.3 million in 2024, reminded shop owners that the handling fee was operated on a not-for-profit basis and was intended to cover operational costs rather than generate commercial gain.

It concluded that the 2.2 cent fee for automated returns and 2.6 cent fee for manual returns would remain unchanged. However, a targeted support of €2,000 per site would be introduced for retailers handling between 250,000 and 500,000 containers per year.

The decision has been criticised by Aontú leader Peadar Tóibín, who said the scheme had proven a hardship for retailers and that Re-turn should use some of its considerable resources to ensure that they break even.

“Re-turn is sitting on a cash pile of millions in unclaimed deposits, while the shop or supermarket is out of pocket. Recent figures show they banked €66.7 million of consumers’ deposits in one year,” he said.

“This scheme has been a drudge for consumers, but it has also been a hardship for retailers, constantly dealing with broken machines and needing manpower to monitor it. It’s an expense and a staff commitment.

“Small retailers have found it particularly tough. They’re doing their best to get on with it in the absence of any other option. They’ve realised 2.2c per container is not enough.

“If Re-turn did not have the money to raise this small handling fee, that would be different. But they do have it, and, certainly, as a not-for-profit company, they should increase the retailers’ fee,” added Mr Tóibín.

Records released under the Freedom of Information Act show that Alan Dillon, the minister with responsibility for the DRS, was contacted about the handling fee by a group of small retailers last year.

They had been assured that the scheme would be cost-neutral when it was introduced, but claimed that the experience of the vast majority of shops was that it was costing them money.