TRA: Irish tyre compliance scheme will ‘distort’ tyre recovery
According to the Tyre Recovery Association (TRA), the Republic of Ireland’s proposed tyre compliance scheme, which is due to come into effect on 1 October, will “seriously distort end of life tyre recovery and recycling efforts on the island of Ireland with knock-on-effects in the UK as a whole”.
The TRA says it is alarmed at the likely consequences these proposals will have on market stability in both the Republic and Northern Ireland. Peter Taylor, TRA secretary general commented: “The open border between North and South will inevitably lead to market distortions and widespread malpractices given the very significant differences in recovery costs between these two parts of Ireland, we note that these concerns are shared by many Irish tyre businesses.”
The ROI proposes fixed up front ‘recovery’ costs on all new tyres imported into the Republic €2.80 for a car tyre, €11 for a truck tyre, all plus 23 VAT per cent. These are far higher than UK market-based rates. All importers of tyres into the Republic will need to register with the government-appointed scheme operator.
Taylor continued: “This approach will likely lead to widespread abuse and its ridged construct may well encounter difficulties in ensuring that all of the several hundred tyre brands in circulation will comply. We fear chaos and are dismayed that a simpler more market-based approach more compatible with the neighbouring United Kingdom could not have been devised”.