18 August 2010

Minister's tyre quango will cost hundreds of jobs

A plan by Environmental Minister John Gormley to increase tax on tyres has been described by the Irish Tyre Industry Association (ITIA) as 'a stealth-tax disguised as a green tax', writes Trish Whelan.

They also contend the tax would see hundreds of jobs lost to Northern Ireland.

The warning is contained in a submission to the Minister, who is believed to be considering the tax increase as a way of financing the disposal of old tyres. This follows RTE's Prime Time report dealing with the illegal stockpiling and illegal disposal of tyres by rogue waste tyre collectors.

"At a time when everyone is under greater financial pressure, plans by Minister Gormley to further increase tax on tyres will inevitably lead to even higher prices for buyers, and that could lead to delays by drivers in replacing tyres that have reached the minimum thread depth for road safety," commented Dave Naughton, President of the Irish Tyre Industry Association.

Their research shows that up to 60 per cent of motorists now allow their tyres to wear below the legal tread depth limit of 1.6mm before changing them.

Mr Naughton says tyre dealers across the country are seeing at firsthand how reluctant motorists are to change their tyres, and how sensitive a factor is price. He added that a further tax on tyres would be seriously misguided and can be considered as a tax on safety.

The Association points that the problem is to do with the Government not providing the resources for enforcing the law against registered waste tyre collectors. "As a result, collectors are being allowed to stockpile tyres or dispose of them illegally. The tyre industry has absolutely no influence over this," Mr Naughton pointed out.

He added that what is needed is enforcement by local authorities, 'not another ill-conceived expensive State-run alternative which will face the very same issue as the current scheme, but at much greater cost to the customer and the industry."

Mr Naughton believed the 'unnecessary' scheme could see up to 1,000 jobs sacrificed to the North.

He said the Minister has left local authorities open to prosecution if they can't themselves enforce waste tyre management regulations. He believed the existing system can work; it just needs to be enforced and that there is no appetite for yet another State quango, 'especially one whose only contribution will be to add significantly to the price of a critical safety item which motorists are already struggling to afford'.