Fianna Fáil TD for Longford – Westmeath Robert Troy has criticized the government for planning to put in place new regulations that will undermine the haulage industry. The new regulations will also lead to an increase in costs for motorists and the agricultural sector.
Minister for Environment Alan Kelly is planning to implement a full ‘Producer Responsibility Initiative’ (PRI) scheme for tyre wholesalers and retailers. The changes will result in the cost of tyres increasing by €3 for cars, €15 for trucks and €20 for agricultural vehicles.
Deputy Troy raised the matter in the Dáil earlier today with Minister of State Kevin Humphreys.
“The Department of Environment is proposing to implement a full PRI scheme for waste tyres. This will result in Repak and WEEE effectively having a monopoly over the entire tyre recycling industry while the government will also implement a ‘Green Tax’ to cover the costs of recycling.
The changes will have a negative effect on all stakeholders in the industry, including the consumer. Under the current self-compliance scheme the average cost of disposing of a tyre is €1. This is in stark contrast to the new regulations which will increase the cost of tyres by €3 for cars, €15 for trucks and €20 for agricultural vehicles.
“The changes will lead to disruption in the tyre manufacturing, distribution and recycling industry. It will force hauliers to look outside of Ireland to source tyres, some of which may be of a lower standard. The changes will also increase operating costs for hauliers who will be forced to pass it on to the consumer. This is bad news for businesses across Longford and Westmeath who rely on the haulage industry to transport goods.
Deputy Troy also pointed out that the changes will lead to increased costs for the agricultural sector.
“If the proposed scheme is implemented it will cost on average €20 to purchase an agricultural type tyre. This will have a significant impact on farmers who are already struggling to cope with increasing costs.
“I have serious doubts as to the necessity of the proposed scheme. The Minister should instead introduce measures to strengthen the current system and to allow competition among licensed collectors. Greater sanctions should also be imposed for non-compliance as is the case across Europe.”