Written answers

Tuesday, 31 January 2017

Department of Communications, Energy and Natural Resources

Tax Code

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
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677. To ask the Minister for Communications, Energy and Natural Resources if he will consider rescinding his decision to impose a tyre levy on motorists and hauliers; if his attention has been drawn to the fact this levy will have a detrimental effect on the tyre industry; if his attention has also been drawn to the fact this new levy has the potential to drive businesses into the black market and other jurisdictions in which no such levy is in place, resulting in the loss of much needed jobs in the tyre industry; and his views on whether he has effectively created a monopoly in tyre waste disposal by placing full producer responsibility for tyre waste disposal with a company (details supplied). [4013/17]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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The fee, which the Deputy is referring to, is not a new charge.  Consumers already pay a fee for the disposal of their old tyres whenever they buy a new one. This fee is not provided for in legislation but exists as an informal charge applied by tyre retailers.  There is no accountability associated with the existing charge and no certainty for the consumer that the disposal fee they currently pay is being used for its intended purpose. The level of illegal stockpiles would suggest that it is often not properly applied.

The model that I am introducing will formalise the disposal arrangements and ensure that the fee consumers pay funds the environmentally sound management of waste tyres. 

I have met with representative organisations from the tyre industry and I am very aware of their concerns in relation to the new structures being introduced for tyres.  I will be ensuring that, in so far as is practical, their concerns will be addressed. 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.  I am confident that this will address market distortion and it is an issue which I will keep under review.

I should point out that 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.

The charge will fund a producer compliance scheme which will be operated by Repak End of Life Tyres (ELT) with a registration and reporting role for the Producer Register Limited. This type of model is one that has been operating very successfully across other waste streams in Ireland, including packaging, batteries, waste electrics and electronics and farm plastics. The scheme will carry out 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.

There is nothing unusual about the designation of a single compliance scheme for a particular waste stream. Indeed, a comprehensive review of compliance schemes in Ireland in 2014 examined this aspect and recommended that the tyre market in Ireland is such that only one Producer Organisation would be viable. This single compliance model already works in other waste streams for example, farm plastics (IFFPG) and packaging (Repak).

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

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