{"id":13136,"date":"2015-12-22T12:11:23","date_gmt":"2015-12-22T11:11:23","guid":{"rendered":"http:\/\/www.tyretrade.ie\/?p=13136"},"modified":"2015-12-22T12:13:22","modified_gmt":"2015-12-22T11:13:22","slug":"setting-the-record-straight","status":"publish","type":"post","link":"https:\/\/www.tyretrade.ie\/index.php\/setting-the-record-straight\/13136","title":{"rendered":"Setting the record straight"},"content":{"rendered":"

The Irish Times published an article on Monday, December 7th, which presents how the Department of the Environment, Community and Local Government or Repak ELT see the new Government compliance scheme for waste tyres. The validity of the claims is not challenged in the article and more disappointing, the article appears not to be researched, not balanced, no right of reply or response offered to others with alternative opinions.<\/span><\/span><\/span><\/p>\n

Therefore we feel obligated to bring the balance to this by outlining the facts as we see them through experienced eyes and to avail of this opportunity to set the record straight in certain areas on this important issue. The article is in black with <\/span>Padraic Deane’s<\/b><\/i><\/span> comments in red.<\/span><\/span><\/span><\/p>\n

Recycling scheme to oversee tyre disposal in Republic<\/b><\/span><\/span><\/span><\/p>\n

(It is not a <\/span>recycling<\/u><\/span> scheme – it’s a compliance scheme)<\/span><\/span><\/span><\/p>\n

Repak ELT will also help clean up\u00a0estimated 10 to 15 million waste tyres in\u00a0illegal dumps.<\/span><\/span><\/span><\/p>\n

There are no statistics to back this up and the newspaper just accepts it from a new Government quango that has been chosen to operate the new Government scheme. The provision of this service was not put out to tender by the Department of Environment, Community and Local Government\u00a0(DECLG), which I’m sure most journalists would find very suspicious and very unusual to bypass that process these days.<\/span><\/span><\/span><\/p>\n

\u00a0The\u00a0Environmental Protection Agency (EPA), a reputable body with no vested interest (political or commercial) is on the record as saying of tyres in illegal dumps – “the figures are negligible”.<\/span><\/span><\/span><\/p>\n

PICTURE CAPTION: <\/span>The\u00a0recycling scheme will not involve a new charge or tax on motorists. \u00a0<\/span><\/span><\/span><\/p>\n

The new Government Scheme does involve a new tax on motorists of \u20ac2.80 + VAT which is \u20ac3.44 (if as expected VAT is applied at 23%). There is no existing tax, so of course it’s a ‘New Tax’ on motorists, which amounts to \u20ac13.44, if you buy four tyres for your car from next summer. <\/span><\/span><\/span><\/p>\n

It is interesting and hardly a coincidence that the new tax will not be applied until next summer, coming after the General Election, despite Repak ELT being\u00a0operational\u00a0since November 1st. 2015. We believe that the haulage industry will likely pay the new tax of up to \u20ac15 per tyre (+ VAT) with farmers paying about \u20ac30 (+ VAT) for a back tractor tyre.<\/span><\/span><\/span><\/p>\n

\u00a0<\/span>A new recycling scheme will from next year oversee the disposal of all waste tyres in the Republic.<\/span><\/span><\/span><\/p>\n

Again – it is not a recycling scheme – compliance scheme. The Repak ELT website says that it is in\u00a0Phase one of the scheme, which is being used as a transition period to prepare the industry, for the introduction\u00a0of a PRI in phase two. PRI stands for Producer Responsibility Initiative. There is no such scheme as this Repak ELT one offered in any other country in the EU. It is clearly not a PRI by definition or by its planned operation.\u00a0<\/span><\/span><\/span><\/p>\n

How can it be a manufacturer’s initiative when they didn’t set it up? They all refused approaches to be directors of Repak ELT and so on. It is simply a new Government scheme, operated by a new quango that was given their role without a competitive process, and who will collect a new high tax on tyres, that residents, businesses and farmers in Northern Ireland will not be paying. \u00a0<\/span><\/span><\/span><\/p>\n

Repak\u00a0End of Life Tyres will also contribute to the costs of disposing of an\u00a0estimated 10 to 15 million tyres stockpiled in\u00a0illegal dumps, warehouses\u00a0and on farms across the State.<\/span><\/span><\/span><\/p>\n

\u00a0Again as outlined earlier – there is no evidence of anything like these numbers. Any large tyre dumps that have been identified were assembled by tyre\u00a0collectors that were\u00a0licenced by the Department of Environment, Community and Local Government (DECLG).<\/span><\/span><\/span><\/p>\n

\u00a0Repak or Repak ELT will not contribute anything to collect or clean-up any tyres hoarded by those Government licenced collectors.<\/span><\/span><\/span><\/p>\n

They may use part of this new tax they collect to tidy up the results of the reckless behaviour of the DECLG in handing out waste tyre collection licences to practically anyone that sought one. And if it does, be very clear it is Irish motorists, truck owners and farmers that will end up funding it!<\/span><\/span><\/span><\/p>\n

The initiative will not involve a new charge or tax on motorists, who already pay a levy on new tyres to fund safe\u00a0disposal.<\/span><\/span><\/span><\/p>\n

As stated above – there has been no tax on waste tyre disposal to date, so it is a new tax on motorists, businesses that have vans, trucks, etc. and farmers, contractors and others that use tractors, heavy machinery, etc.<\/span><\/span><\/span><\/p>\n

The previous experience was that most tyre retailers charged up to \u20ac2 to pay for car tyre disposal. This money was passed on to the licenced tyre collectors, and recycling outlets, and a small fee to the Tyre Recovery Activity Compliance Scheme (TRACS), which recorded the statistics and managed the scheme.<\/span><\/span><\/span><\/p>\n

This is largely confirmed in a DEPOTEC Life+ End of Project\u00a0Workshop presentation given on Wednesday 25th November, 2015\u00a0Tyres and Waste Tyres, by\u00a0Philip Nugent Principal Officer Waste\u00a0Policy & Resource Efficiency Department\u00a0of the Environment, Community & Local\u00a0Government. <\/span><\/span><\/span><\/p>\n

He stated that: \u201cThe\u00a0\u20ac2 recycling levy paid by the consumer was broken down in to\u00a0\u20ac1 to a licenced collector & \u20ac1 to a recycling facility.\u201d<\/span><\/span><\/span><\/p>\n

Many truck owners and farmers paid no disposal fee to tyre retailers, and the tyre trade had in practice to fund disposal of such tyres from their retail profit margin. The requested fee absorbed by retailers to cover collection, recycling and administration was up to \u20ac8 for a truck tyre.<\/span><\/span><\/span><\/p>\n

See the latest views of the Irish Road Haulage Association and Freight Transport Association of Ireland on the new tyre tax (and the rate to be charged for truck tyres) elsewhere in this issue.<\/span><\/span><\/span><\/p>\n

The scheme will operate as Repak ELT, a separate\u00a0entity to Repak\u2019s current recycling business. It replaces earlier\u00a0attempts to track tyre imports and impose recycling \u2013 the latest was\u00a0found to have a non-compliance rate of 46 per cent.<\/span><\/span><\/span><\/p>\n

The previous scheme (TRACS) was set up in 2007. It operated according to best practice but it was amazingly thwarted\u00a0\u00a0on an ongoing basis\u00a0by the Department (DECLG) that approved it in the first place under the Waste Management (Tyres and Waste Tyres) Regulations 2007. Firstly, as outlined above, the DECLG gave waste collector licenses to practically anyone who applied for them and then it didn’t monitor the licensees.<\/span><\/span><\/span><\/p>\n

It also authorised a second scheme in 2009, with no synthesis reporting protocol put\u00a0in place by the DECLG so that they\u00a0and the EPA would get a single national\u00a0report on waste tyres arisings and\u00a0the ultimate treatment of these arisings.\u00a0<\/span><\/span><\/span><\/p>\n

This precluded any benchmarking\u00a0or setting of national waste collection\u00a0targets. So the Department (DECLG) designed\u00a0the system to ultimately fail!<\/span><\/span><\/span><\/p>\n

On top of that it provided very little or no enforcement to support TRACS. \u00a0The deficiency highlighted by RTE’s Primetime programme in 2010 was the lack of enforcement\u00a0of the\u00a0Waste Management Act legislation by those charged with the legal\u00a0responsibility and obligation to do so.\u00a0<\/span><\/span><\/span><\/p>\n

\u00a0Each of the 5 companies\/individuals\u00a0highlighted by\u00a0Primetime had a valid waste tyre collection permit issued by\u00a0their respective\u00a0Local Authority. The tyre shops who paid these collectors to\u00a0dispose of the\u00a0waste had every right to expect that their waste would be\u00a0dealt with in an\u00a0environmentally appropriate manner. However, with no\u00a0oversight or enforcement\u00a0of waste obligations, these collectors were allowed\u00a0to act with impunity. And again, it will be taxpayers that will provide the funds to clean up any waste tyres that have been dumped.<\/span><\/span><\/span><\/p>\n

TRACS had a stellar record of\u00a0monitoring and tracking tyre waste arisings on\u00a0behalf of the Industry from 2008\u00a0through 2014.<\/span><\/span><\/span><\/p>\n

The waste arisings calculated by\u00a0TRACS which were benchmarked against\u00a0CSO figures show 72 per cent of the waste\u00a0accounted for in 2010.<\/span><\/span><\/span><\/p>\n

That compares with Repak Limited, the sole approved\u00a0compliance scheme for the recovery of packaging waste in Ireland, achieved a\u00a0packaging waste recovery rate of 74 per cent in 2010.<\/span><\/span><\/span><\/p>\n

\u00a0If a synthesis\u00a0report wasavailable, surely the figures\u00a0from TWM and the Self Compliance\u00a0Scheme would add considerably to this figure.\u00a0No attempt was made by the\u00a0RPS Review to examine or understand the anomaly\u00a0between the TRACS\u00a0figure and the EPA figure. Benchmarked against CSO numbers\u00a0for the same\u00a0period the TRACS report shows waste arisings accounted for as\u00a0follows:\u00a082% 2011, 90% 2012 and 83% for 2013\u00a0respectively (source TRACS\u00a0annual report).<\/span><\/span><\/span><\/p>\n

A review found there was a lack of consistent data on\u00a0what happened used tyres collected from the motor industry, with\u00a0between 25 and 50 per cent going missing.<\/span><\/span><\/span><\/p>\n

Previously, numerically, 50 per cent of the economic\u00a0operators may not have registered with a\u00a0Compliance Scheme. Delving in to the numbers, for the most part, this 50 per cent is accounted for by crash\u00a0repair shops, small garages, pre-NCT shops\u00a0and main dealers who are\u00a0casually involved in fitting tyres, i.e. not their\u00a0main business.\u00a0<\/span><\/span><\/span><\/p>\n

\u00a0In no way does\u00a0this numerical 50 per cent represent 50 per cent of the tyres\u00a0placed on the market which is\u00a0what one would infer from this reference made by\u00a0RPS and in turn by the\u00a0Minister.<\/span><\/span><\/span><\/p>\n

Enforcement authorities<\/b><\/span><\/span><\/span><\/p>\n

A number of local\u00a0authorities have been nominated as waste- enforcement regional local\u00a0authorities \u2013 Werlas \u2013 to\u00a0police the new system. These include\u00a0Cork City Council <\/span>(that was subsequently corrected to Cork County Council)<\/span> for the south and southwest region, Dublin City for the midlands\u00a0and east, and\u00a0Leitrim\u00a0and\u00a0Donegal, which will jointly police the west and northwest.<\/span><\/span><\/span><\/p>\n

It would be great if this aspiration about enforcement became a reality. However, first of all from our discussions with people in local authorities, they have confirmed that they have less people doing more since the downturn in 2008. The overwhelming feeling is that there is no likelihood of additional roles of this nature being operated to any level of success. Of course, they will go after the low hanging fruit – those legitimate businesses that abide by the law (but who object to this new Government tax). However, there will be no appetite to enter into difficult and drawn-out process with hundreds of others that may not be so accessible.\u00a0<\/span><\/span><\/span><\/p>\n

From next year industry importers will pay Repak ELT \u20ac2.80 for every car tyre imported into\u00a0Ireland.<\/span><\/span><\/span><\/p>\n

The new Government tax on motorists is not \u20ac2.80 but rather \u20ac2.80 + VAT which is \u20ac3.44 (if as expected VAT is applied at 23 per cent).<\/span><\/span><\/span><\/p>\n

That\u00a0amounts to \u20ac13.44 extra tax (in addition to 23 per cent VAT on your tyres), if you have four tyres fitted to your car from next summer. <\/span><\/span><\/span><\/p>\n

No such tax exists in Northern Ireland, so the potential of major losses to trade in Northern Ireland and taxes to the Revenue Commissioners is great. It will be even greater when the high rates of tax on truck and agricultural tyres are announced – probably after the General Election!<\/span><\/span><\/span><\/p>\n

I hope that we have set the record straight, adding balance to points and claims made in the article as well as clarifying a great deal of misinformation that is out there.<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Irish Times published an article on Monday, December 7th, which presents how the Department of the Environment, Community and Local Government or Repak ELT see the new Government compliance scheme for waste tyres. 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