The ACCC is proposing to grant authorisation for Tyre Stewardship Australia (TSA) to continue its revised Tyre Stewardship Scheme for a further six years.
The scheme aims to increase the recycling of tyres and the use of products made from recycled tyres in Australia. The Australian, Competition and Consumer Commission (ACCC) has decided to grant interim authorisation to allow TSA to continue to run the scheme (as authorised by the ACCC in 2013) while the ACCC finalises its assessment of the revised scheme.
TSA was formed in 2014 after the Australian Tyre Industry Council applied to the ACCC to establish a national Tyre Stewardship Scheme. The ACCC authorised the move in 2013 and agreed that it would be administered by a new association, known as Tyre Stewardship Australia. In January 2014, the association officially formed.
The scheme is funded through a levy of 25 cents per equivalent passenger units (standard passenger car tyres, known as EPUs) on the importation of new tyres by voluntary member companies of the scheme.
Since 2013, TSA has directed $3 million of funds from the levy into market research for the development of new products made from recycled tyres.
“We believe the scheme is likely to result in a public benefit by reducing the number of tyres disposed of in landfill, illegally dumped, or exported overseas to be burned unsustainably for fuel,” ACCC Commissioner Roger Featherston said.
“Used tyres can be reprocessed in Australia to create useful products such as soft-fall playground mats, industrial flooring, and brake pads.”
TSA is currently developing more rigorous accreditation and monitoring of industry participants, and a verification process to track the destination of tyres exported overseas.
“We’re satisfied the voluntary scheme is unlikely to result in any significant public detriment because the industry levy, at 25 cents per tyre, represents a very small portion of the total retail price of tyres. We also note that participants of the scheme are not prohibited from dealing with non-accredited businesses in certain circumstances.”
Mr Featherston said the ACCC expected TSA to continue working with stakeholders in the tyre supply chain and government to make further improvements, including expanding its membership.
Dale Gilson, TSA Chief Executive Officer, said TSA were pleased with the ACCC draft determination on, and interim authorisation of, the continuation of the Tyre Product Stewardship Scheme.
“It recognises the value the Tyre Product Stewardship Scheme has been able to deliver, and the work that has been done to set-up future improvements in the sustainable management of end-of-life tyres. We have welcomed and valued the input from the many interested parties and, following the feedback period for the draft determination, look forward to progressing TSA’s objectives in the future,” Mr Gilson said.