The government has dropped its plans to abolish deposits on large plastic bottles, junior environment minister Wilma Mansveld has told parliament.

The idea has been dropped because the packaging industry has not met its side of the deal to phase out PVC in supermarket packaging, the minister said.

The cabinet agreed to end the current system of deposits on plastic bottles following pressure from the packaging industry which argued there would be major cost advantages. The cost savings, in a report commissioned by the industry, were later shown to be exaggerated.

That decision was also widely criticised by the recycling industry and environmental groups.

However, Mansveld told parliament she has no plans to introduce deposits on bottles smaller than 0.5 litres or on cans.