Minister for the Environment Alan Kelly is set to create another Irish Water-type quango which will not only cost taxpayers money but could result in significant job losses in the tyre trade, the ITWRA has warned.

In a statement issued to TyreTrade.ie the ITWRA says: “The Industry – represented by the Independent Tyre Wholesalers and Retailers Association (ITWRA) fears that Minister Kelly’s proposal to introduce a new waste tyre levy will have adverse effects on the proper environmental management of waste tyres and increase fly tipping to record levels.”

The statement continues: “The tyre dealers are also raising serious concerns about the granting of a monopoly operating agreement to Repak to run the new scheme.”

“Minister Kelly is introducing a Producer Responsibility Initiative (PRI) for waste tyres which will result in motorists paying an extra €14.00 on a set of tyres. The haulage industry and farmers could face charges ranging from €10.00 to €40.00, forcing them to buy tyres outside the country avoid this new tax.”

“This could result in as many as 1,000 job losses in tyre dealers around the country and put many businesses in jeopardy as tyre buyers go North of the Border or  to the UK to purchase new tyres.”

“The Minister has selected Repak to operate this monopoly scheme which will take in up to €75m over five years but ITWRA maintains that current licensed waste collectors are doing the same job for €15m, and without any direct cost to customers.”

The statement added: “The entire tyre industry has pulled out of talks with the Department which means Minister Kelly is on the way to creating another White Elephant, another Irish Water in effect.”

“Despite this breakdown of talks Minister Kelly is insisting on bulldozing this through and taking no account of what the tyre industry is telling him.  At the same time the Minister and his Department has failed to answer questions about the scheme which we have raised and which have been raised in the Dail on our behalf.

“The Minister may state that the public are paying extra at the moment to clean up existing waste, but his solution is to legislate to treble the cost with a scheme that will take illegal dumping to new levels.”

“The Labour Party is supposed to all about protecting jobs and workers but if Mr Kelly insists on pushing this new levy through then it will result in job losses, businesses going bust and trade going to the North or the UK.   This will have an impact all over the country, including in Minister Kelly’s own Tipperary constituency.    Are the people of Tipperary aware of this?”

“Repak can also walk away when the scheme fails and what will happen then to all the waste tyres, especially in Dublin.   We believe that this new levy will result in an increase in fly-tipping of waste tyres in ditches and fields around the country so that rather than being a measure which is supposed to be environmentally friendly, it will have a negative environmental impact.”

“Minister Kelly will say this is all about protecting the environment and that’s why the levy is needed. They are calling it a nice name but it is really just another stealth tax.

“As tyre dealers we are environmentally conscious and already pay to have waste tyres taken away by licensed collectors.    There is also a perfectly acceptable system operating in the UK which we would be happy to have here.

“We as independent tyre dealers are calling on all politicians – local and national – to oppose this new scheme and stealth tax because it will put jobs in your local area in jeopardy.”