The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025

Schedule 5 Appointment etc. of the deposit management organisation

Regulations 50 and 79 Part 1 Introductory Interpretation of Schedule 5 1 In this Schedule— “DMO applicant” means a person who makes a DMO appointment application; “DMO appointment application” means an application to be appointed as the deposit management organisation; “not-for-profit body corporate” means a body corporate which uses money earned by, or donated to, that body corporate solely to pursue its objectives and which does not distribute income to its members, directors, or officers except for reasonable remuneration for goods or services supplied to that body; “notice” means a notice in writing; “specified” means specified in a notice given by the Secretary of State. Part 2 Appointment of the deposit management organisation Decision on DMO appointment applications 2 (1) The Secretary of State must— (a) having assessed each DMO appointment application, determine— (i) which DMO applicant is proposed to be appointed as the successful DMO applicant, and (ii) whether any conditions apply to the appointment, (b) obtain the consent of DAERA to the proposed appointment of the successful DMO applicant, and (c) give each DMO applicant a notice of the decision made in respect of their DMO appointment application. (2) The Secretary of State may only propose that a DMO applicant is appointed as the deposit management organisation if the Secretary of State is satisfied that the DMO applicant— (a) is a not-for-profit body corporate but is not a charity, and (b) is suitable for appointment as the deposit management organisation, having regard in particular to— (i) the level of support for the DMO applicant’s DMO application amongst scheme producers and scheme suppliers; (ii) the DMO applicant’s proposed finance strategy, including in particular how the DMO applicant intends to ensure that the Scheme becomes and remains self-financing; (iii) the DMO applicant’s proposed strategy for ensuring that the views of all scheme producers and scheme suppliers (irrespective of their size), and of consumers, are obtained and taken into account in the carrying out of the DMO functions; (iv) the DMO applicant’s proposed strategy for minimising the environmental impact of the Scheme and facilitating the recycling of in-scope material; (v) the arrangements which the DMO applicant intends to put in place to ensure cooperation with any scheme administrator of another deposit scheme or any Scottish deposit administrator of a Scottish deposit and return scheme, in particular in connection with— (aa) the operation of the Scheme; (bb) the operation of the other deposit schemes; (cc) the operation of the Scottish deposit and return schemes; (dd) facilitating and improving the ease of return by consumers of drinks containers purchased in one part of the United Kingdom and returned in another part of the United Kingdom; (ee) facilitating and improving the registration process for those who produce, or import, drinks for the United Kingdom market; (vi) the DMO applicant’s proposed strategy for reducing and eliminating any fraud in the Scheme, and (vii) the purposes for which the DMO proposes to use any amounts which they are permitted to retain under the Scheme but which are not needed to finance the Scheme itself. (3) A notice under sub-paragraph (1)(c) must— (a) if the Secretary of State grants the DMO applicant’s DMO appointment application— (i) state that the application has been granted, (ii) specify the date on which the person’s appointment as the deposit management organisation will take effect, and (iii) state any conditions applying to the person’s appointment; (b) if the Secretary of State refuses the DMO applicant’s DMO appointment application— (i) state the reasons for the decision, and (ii) state that the DMO applicant may appeal against the decision, and include a statement as to how such an appeal may be brought. (4) Where there are two or more DMO applicants, the date specified for the purposes of sub-paragraph (3)(a)(ii) must not be before the end of the period within which a person may bring an appeal against the decision to refuse their DMO appointment application (disregarding any extension of that period). (5) In this paragraph “charity” means a body established for charitable purposes only (whether or not it is registered as a charity in any part of the United Kingdom). Part 3 Revocation of a person’s appointment as the deposit management organisation Revocation of a person’s appointment as the deposit management organisation: on notice 3 (1) The person appointed as the deposit management organisation (“the resigning DMO”) may give notice (a “revocation notice”) to the Secretary of State stating that they wish to cease to be the deposit management organisation. (2) If the Secretary of State receives a revocation notice, the Secretary of State must— (a) revoke the resigning DMO’s appointment as the deposit management organisation, and (b) give the resigning DMO a notice which specifies the date on which the revocation takes effect. (3) The date specified for the purposes of sub-paragraph (2)(b) must not be before the end of the period of 18 months beginning with the date on which the Secretary of State receives the revocation notice. Revocation of a person’s appointment as the deposit management organisation: discretion of the Secretary of State 4 (1) The Secretary of State may, with the consent of DAERA, revoke a person’s appointment as the deposit management organisation if— (a) it appears to the Secretary of State that the person— (i) has been convicted of an offence involving financial impropriety or fraud; (ii) has become bankrupt; (iii) has become subject to insolvency or winding-up proceedings; (iv) has had assets made subject to administration or receivership, including by a liquidator or court; (v) has entered into an arrangement with the person’s creditors; (vi) has become subject to a petition or application for any such procedures or arrangements referred to in sub-paragraphs (ii) to (v); (vii) has, in any jurisdiction, been subject to a procedure or an application which corresponds to any procedure or application mentioned in sub-paragraphs (ii) to (v); (viii) has failed for at least three years to meet the collection targets for a deposit management organisation; (ix) has knowingly or recklessly supplied false information in connection with its DMO appointment application or in connection with any of its obligations as the deposit management organisation under or in connection with the Scheme; (x) has failed to comply with a notice or fine issued by a national enforcement authority; (xi) has repeatedly refused or failed to pay NEA costs after being invoiced for those costs, or (xii) has failed to meet one or more of that person’s conditions of appointment; or (b) the person has notified the Secretary of State of a change of circumstances which the Secretary of State considers is likely to prevent the person from complying with that person’s conditions of appointment. (2) The Secretary of State— (a) must revoke a person’s appointment as the deposit management organisation if the Secretary of State considers— (i) that a mandatory exclusion ground set out in Schedule 6 to the Procurement Act 2023 (mandatory exclusion grounds) (“the 2023 Act”), applies to that person or to a connected person, and (ii) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again, or (iii) the person, or a connected person, is on the debarment list under section 62 of the 2023 Act (debarment list) by virtue of a mandatory exclusion ground set out in Schedule 6 to that Act. (b) may, with the consent of DAERA, revoke a person’s appointment as the deposit management organisation if the Secretary of State considers— (i) that a discretionary exclusion ground set out in Schedule 7 to the 2023 Act (discretionary exclusion grounds) applies to that person or to a connected person, and (ii) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again, or (iii) the person, or a connected person, is on the debarment list under section 62 of the 2023 Act by virtue of a discretionary exclusion ground set out in Schedule 7 to that Act. (3) In this regulation “connected person” has the same meaning as that given to “connected person” in paragraph 45 of Schedule 6 to the 2023 Act in relation to a supplier. (4) If the Secretary of State proposes to revoke a person’s appointment as the deposit management organisation it must give the person a notice (a “proposal notice”). (5) A proposal notice must be in writing and must— (a) state that the Secretary of State, with the consent of DAERA, proposes to revoke the person’s appointment as the deposit management organisation, and the reasons why, (b) specify the date on which the revocation will take effect, (c) state that the person may make representations in connection with the proposed revocation of their appointment, and (d) specify the form and manner in, and date by, which any such representations must be made to the Secretary of State. (6) The date specified for the purposes of sub-paragraph (5)(b) must not be before the end of the period within which the person may make an application for a review of the decision to revoke their appointment as the deposit management organisation (disregarding any extension of that period). (7) The Secretary of State— (a) must consider any representations that are made in the specified form and manner, and by the specified date; (b) may disregard any representations that are not made in the specified form and manner or are made after the specified date. (8) The Secretary of State must notify the deposit management organisation in writing of the decision. (9) The Secretary of State must give a copy of any notice under sub-paragraph (8) to DAERA. (10) Where the Secretary of State decides to proceed with the proposed revocation, the Secretary of State must give that person a notice (a “revocation notice”). (11) The revocation notice must— (a) state that the person’s appointment as the deposit management organisation has been revoked, and (b) specify the date on which the revocation will take effect. (12) The Secretary of State must give a copy of any revocation notice to DAERA. Transfer of assets etc. 5 (1) The Secretary of State may transfer relevant property, rights and liabilities of the outgoing DMO to the new DMO, or to the interim scheme administrator, as a consequence of the outgoing DMO ceasing to be the deposit management organisation. (2) The relevant property, rights and liabilities of the outgoing DMO that may be transferred under paragraph (1) are as follows— (a) data created and compiled specifically for the Scheme; (b) land assets; (c) intellectual property, including scheme branding; (d) deposits; (e) IT systems; (f) contracts entered into by the outgoing DMO for the purpose of the Scheme; (g) collection and processing infrastructure; (h) staff and human resources systems. (3) The Secretary of State may only transfer such of the relevant property, rights and liabilities set out in paragraph (2) as constitute the minimum assets required to keep the Scheme operational and to protect consumer interests. (4) The transfer of any property, rights and liabilities is effective on the new appointment date. (5) The property, rights and liabilities that may be transferred under this paragraph include property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the outgoing DMO. (6) A transfer of property, rights and liabilities under this paragraph takes effect despite the absence of any required consent or concurrence to or with the transfer and as if— (a) no liability existed in respect of a contravention of a requirement for consent or concurrence, and (b) there were no interference with any property or right, that would otherwise exist by reason of any provision (whether under any enactment or agreement or otherwise) having effect in relation to the terms on which the outgoing DMO is entitled to the property or right, or subject to the liability, in question. (7) For the purposes of this paragraph, any property, right or liability of the outgoing DMO is relevant property, or a relevant right or liability, only if it was acquired by, or the outgoing DMO became subject to it, in the course of the exercise of its functions as the deposit management organisation under or in connection with the Scheme. (8) In this paragraph and paragraph 6— “the new appointment date” means the date on which the new DMO’s appointment takes effect; “the new DMO” means the person next appointed as the deposit management organisation following the revocation of the outgoing DMO's appointment; “the outgoing DMO” means the person whose appointment as the deposit management organisation is revoked under paragraph 3 or 4. Transitional provision in connection with paragraph 5 6 (1) Anything that— (a) is done (or has effect as if done) by or in relation to the outgoing DMO in respect of any property, right or liability transferred to the new DMO under paragraph 5, and (b) has effect immediately before the new appointment date, is to be treated as done by or in relation to the new DMO. (2) There may be continued by or in relation to the new DMO anything (including legal proceedings) that— (a) relates to any property, right or liability transferred under paragraph 5, and (b) is in the process of being done by, on behalf of or in relation to the outgoing DMO immediately before the new appointment date. Continuity in exercise of deposit management organisation functions 7 (1) Anything done by the outgoing DMO in connection with the exercise of the DMO functions has effect as if done by the new DMO. (2) In this paragraph, “the new DMO” and “the outgoing DMO” have the same meanings as in paragraph 5(8). Part 4 Appeals in connection with Parts 2 and 3 Right of appeal 8 (1) A DMO applicant may appeal against a decision of the Secretary of State under paragraph 2 to refuse their DMO appointment application. (2) A person may appeal against a decision of the Secretary of State under paragraph 4 to revoke their appointment as the deposit management organisation. (3) An appeal under sub-paragraph (1) or (2) is to the First-tier Tribunal.