Minister’s statement contains some misinformation
The Environment Minister, Alan Kelly has responded to the Irish Tyre Industry Association’s (ITIA) decision to withdraw from discussions with the Department of Environment, Community and Local Government (DECLG) on the proposed waste tyre compliance scheme with an inflammatory statement that may drive a further wedge between the tyre industry and the Department.
Minister Kelly’s existing responsibilities include major controversial issues such as Irish Water, and the even greater personal tragedy that is the homelessness of thousands of Irish people including more than 1,300 children, so why he would wish to open up a third front with the Irish tyre industry is hard to fathom.
In his statement responding to the ITIA’s withdrawal from discussions with the DECLG, he has a number of inaccuracies that are contributing to misinformation that he says is already out there.
First of all, I think it is very unfair to say that the tyre industry does not want to take responsibility for their own waste. It is also a fact the industry has no issues with a properly constituted fit-for-purpose PRI and it has repeatedly stated that fact.
The issues that the tyre industry clearly has with the proposed Government PRI are first of all – the proposed cost model. Minister Kelly is wrong to state that : “The new system can be provided for without introducing any new costs, but rather by effectively formalising an existing charge that is already applied to almost all tyre purchases”.
The proposed new charge (a new tax on motorists and businesses) is €3.44 per car or van tyre (that’s €13,78 per set of four), and I have never come upon that level of disposal fee being charged by any tyre retailer in this country.
Based on this rate for car tyres, the transport and farming industries are in for major shocks when the new levy (tax) rate for truck and tractor tyres are announced. These are very high and unrealistic new tax rates on motorists, businesses and farmers. And I believe that it will drive serious levels of custom north of the border, followed by tyre businesses re-locating out of this jurisdiction, all with major consequential loss of revenues to the State.
Additional to the lost taxation revenues, I see it further providing a major headache for the Revenue Commissioners and the Gardai in that current lawless elements that are losing out due to curbs to prevent washed diesel and stretched petrol etc, will turn to a new racket – waste tyre disposal.
It appears to me that the DECLG may want a public servant friendly PRI model that it can roll out to other sectors in the next few years. However, it is clearly unfit-for-purpose for the tyre industry, and therefore, they should stop now and go back to the drawing board. Bad law is always doomed to be repealed down the line, so why not get it right from day one?
If the Minister does not, I predict that such a disruptive scheme, without the support of the Irish tyre trade, will be bankrupt within three years.
It will also have contributed to the loss of a fortune to the Irish Revenue, and the lostsof a lot of jobs to Northern Ireland in particular.
It will also encourage greater lawlessness across the economic border, something that other agencies of the State are working hard to stop.
(See other responses below to the Minister this week from the ITIA, ITWRA, and TRACS).