Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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653. To ask the Minister for Communications, Energy and Natural Resources the position regarding the new tyre compliance scheme which will replace the TRACS system in 2017; the new charge per tyre; if he will address the concerns of retailers here that this will drive business north of the Border and not allow retailers here to be competitive (details supplied); and if he will make a statement on the matter. [34449/16]

Denis Naughten (Roscommon-Galway, Independent)
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As part of a wider review of producer responsibility compliance schemes in Ireland, a specific module examined the structural and environmental effectiveness of all aspects of the system for managing waste tyres.  The report, published for consultation in November 2013 and in final form in April 2014, found:

- a non-compliance rate with the Tyre Regulations of 46%,

- a lack of consistent and accurate data,

- that the current system was not tracking data flows well, and

- that between 25% and 50% of waste tyres were not accounted for.

The report recommended, inter alia, that the scope of the existing schemes should be changed to improve the environmentally sound management of waste tyres.  

Following extensive discussions with the tyre industry, the then Minister announced, in January 2015, his decision to put in place new structures for tyres and waste tyres in Ireland. The new compliance scheme will include the following features among others:

- A single mandatory compliance scheme for end–of-life tyres

- The removal of the option for tyre operators to self-comply with their regulatory obligations

- Formalisation of an existing environmental charge into a visible environmental management charge (vEMC) to ensure that charges that are already being paid by customers are used for their intended purpose.

Repak ELT have been appointed to operate the new compliance scheme to replace the existing TRACS.

The new structures will be underpinned by new Regulations which I expect to have in place early in 2017.  The regulations will set a vEMC for various tyre categories. An indicative vMC for a car tyre of €2.80 has already been announced.  The vEMC for other tyre categories, including agricultural tyres, have yet to be determined.  When setting these fees, I will take advice from the Tyres Working Group on which all tyre stakeholders are represented. 

This vEMC is not a new charge but rather the formalisation of an existing charge that consumers already pay to their tyre retailer whenever they buy a new tyre.  This will be more transparent for a consumer than the current arrangement.  The charge will be a front loaded charge which will be applied by any producer placing a tyre on the market in Ireland.  The charge will be passed down the supply chain and ultimately paid by the consumer.

I am very conscious of concerns in relation to market distortion.  In this regard, distance sellers, i.e. those placing tyres on the Irish market but located outside the State, will have the same obligations as any operator based in Ireland.  In addition tyres will be a priority area for enforcement in 2017 for the Waste Enforcement Regional Lead Authorities (WERLAs) and I will be asking them to give particular attention to the border regions.