Drinks manufacturers should start charging 50 cents deposits on bottles next year, to encourage consumers to hand them in, according to government inspectors in Tuesday’s FD.

The measure, the paper says, would be one way of avoiding the €250 million fine that the industry faces if it fails to meet recycling targets next year. The suggestion is contained in a confidential letter sent by the inspectors to Verpact, the agency charged with organizing recycling efforts.

Large plastic bottles currently carry a 25 cent deposit, small ones 15 cents. Dairy and fruit juice bottles, currently excluded from the recycling scheme, would also be added into the mix. They currently account for some 16% of all plastic bottles sold.

Deposits on cans, introduced in 2022, are not yet in line for a hefty increase. 

Industry is supposed to ensure 90% of drinks bottles are recycled but the figure remains around 70%. One of the main complaints is the lack of places where bottles and cans can be handed in. 

If the inspectors have their way, the increase in deposits will come into effect next July and will only be reduced again if the 90% recycling target is achieved. And the industry will face a €50 million fine this summer if it has not worked out plans to increase the charge by next summer. 

The ILT inspectorate declined to comment in detail on the letter but did confirm that the industry could be facing a fine. Verpact said it has had “contact” with the ministry but also declined to comment further. 

Rabobank analyst Francois Sonneville said he believed higher deposits would lead consumers to look for alternatives without any fees. “If consumers can’t hand the bottle back, then they will see the 50 cents as a price increase,” he told the FD. 

Consumers failed to get back €87 million in deposits on plastic bottles in 2022, broadcaster NOS reported last month.

Some 700 million large plastic bottles and one billion small ones are bought every year in the Netherlands and in 2022 just 68% were returned by consumers.

The unclaimed cash is kept by an industry foundation and is used to finance improvements in the recycling system and boost public awareness.