Michael Healy-Rae (Kerry, Independent)
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237. To ask the Minister for Communications, Energy and Natural Resources his views on a matter (details supplied) regarding the new stealth tax on tyres; and if he will make a statement on the matter. [40323/16]

Denis Naughten (Roscommon-Galway, Independent)
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Consumers already pay a fee for the disposal of their old tyres whenever they buy new ones. However, this fee exists as an informal charge applied by tyre retailers. There is no accountability associated with this fee and no certainty for the consumer that it is being used for its intended purpose. The level of illegal stockpiles would suggest that it is often not properly applied.

The regulations I am introducing will formalise this fee and ensure that it is used correctly to support the sound environmental treatment of waste tyres. As things stand, the consumer pays on the double – first, when they purchase new tyres and then again, through their taxation when local authorities have to remove illegal tyre stockpiles across the country.

The Compliance Scheme will be operated by Repak End of Life Tyres (ELT) with a registration and reporting role for the Producer Register Limited. Repak ELT will operate on a not-for-profit basis and its primary function will be to carry out all regulatory functions on behalf of its members. 

I met with some tyre industry representatives recently who contended that the visible Environmental Management Charge (vEMC) will cause a distortion in the market, with non-compliant operators undercutting compliant ones. I have, however,  received a lot of support during the extensive consultation that has taken place from other parts of the tyre industry for the introduction of the scheme. These operators understand that the scheme will lead to greater visibility and traceability of tyres coming on and off the market and that it creates a level playing field for all economic operators.

I am convinced that the new structures I will be introducing together with a strong enforcement regime by the Waste Enforcement Regional Lead Authorities (WERLAs) and the EPA can address this issue.