Minister Kelly’s New Monopoly Will Waste €60 Million On Tyre Collections

Independent TD Mattie McGrath has called on the Minister for the Environment Alan Kelly to delay the proposed establishment of a new monopoly which he is set to create in order to deal with waste tyre disposals. Deputy McGrath was speaking ahead of an Oireachtas briefing which he is facilitating today on behalf of the Independent Tyre Wholesalers & Retailers Association (ITWRA) who fear that that the move will lead to the elimination of up 1000 jobs in their industry:

“The ITWRA is extremely critical of the fact that Minister Kelly has selected Repak to operate this monopoly scheme which will take in up to €75m over five years.  Meanwhile the ITWRA argue that at present licensed waste collectors are doing the same job for €15m, and without any direct cost to customers.

If these proposals are implemented then it is expected that at least an extra €14 will be added to the price of anyone seeking to buy a new set of tyres.

It will also see the cost of tyre disposal increase by in excess of 200%.

Under this new proposal however charges for disposal will increase to €3 for a car tyre, €15 for a truck tyre and €20 for a tyre used in agricultural vehicles.

This amounts to a three-fold increase of the cost associated with disposing of tyre waste.

There is genuine concern that the rapid escalation of costs will wipe out the ability of many tyre retailers to function,” concluded Deputy McGrath.