Brendan Smith (Cavan-Monaghan, Fianna Fail)
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272. To ask the Minister for Communications, Energy and Natural Resources if further consideration will be given to the concerns of industry members regarding the proposed producer responsibility initiative, as there is widespread concern concerning the adverse effects it will have on small and medium-sized companies that wish to be compliant; if his attention has been drawn to the fact that the scheme will leave too many loopholes that will allow black market activity and fraud, which will distort the market for legitimate business, resulting in job losses; and if he will make a statement on the matter. [2449/17]

Denis Naughten (Roscommon-Galway, Independent)
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I am very aware of the concerns of the tyre industry regarding the new structures which I am introducing for tyres. I recently met with the Irish Tyre Industry Association (ITIA) and the Independent Tyre Wholesalers and Retailers Association (ITWRA). I have also met with the Association for Tyre Retails Standards (ATRS). I listened to the concerns of the ITIA and the ITWRA and I have done my best to address as many of them as possible.  I have also received a lot of support during the extensive consultation that has taken place with the industry for the introduction of the scheme from other operators in the tyre market. One area of concern to the industry is the issue of market distortion and 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.

Elements of the tyre industry also contend that the formalisation of the existing charge which consumers pay when purchasing new tyre will cause a distortion in the market, with non-compliant operators undercutting compliant ones. I do not accept this. 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. The scheme will carry out all regulatory functions on behalf of its members.  All operators will be obliged to provide data on the numbers of tyres coming on and off the market. This will be the first time that there will be clarity in this regard. It will be mandatory for anyone placing tyres on the market in Ireland to join the compliance scheme.

I am convinced that the new structures will address the lack of regulation in this market to date and address the occurrences of stockpiles of waste tyres that could have a detrimental effect on the environment and human health.