Tyrewise - Recycling for end of life tyres

Tyrewise project completed – Final Summary Report

August 28, 2013

With the submittal of the Business Plan, Scheme Launch Preparation Plan and Scheme Accreditation application, Tyrewise Project Milestone 7 has now been completed. Along with the Final Summary Report, this marks the completion of the project phase.

According to Tyrewise Project Manager Adele Rose, the next steps are dependent on the Minister for the Environment, the Hon. Amy Adams, being satisfied that legislative requirements have been adequately met.

“We’re excited about these next stages which include a meeting with the Minister in late September,” says Adele.

“The Tyrewise Working Group worked extremely hard to ensure that their organisations were well represented through the project and that all stakeholders had a chance to have their say.

“We’re confident that the group can demonstrate the industry’s readiness for stewardship of ELTs to the Minister and are hopeful that the recommended preferred Product Stewardship programme will be implemented.”

Final Summary Report

The Final Summary Report gives a clear overview of the ELT problem within New Zealand and the Working Group’s proposed solution, including guiding principles, costs and benefits, explanation of incentives and proposed timelines.

Key points from the report are:

  • In the proposed product stewardship scheme a Tyrewise Fee/Advanced Disposal Deposit of $5.50 per Equivalent Passenger Unit (one EPU equals a typical passenger tyre of around 9.5kg) would initially be imposed on all tyres entering New Zealand (some exceptions, such as bicycle tyres are listed in the report).
  • This fee/deposit would replace the current disposal fees charged by some retailers of between $2.50 and $16.00, and would be expected to reduce over a ten year period.
  • It is proposed that the fee/deposit would be collected by Customs when a loose tyre enters the country and by the New Zealand Transport Authority when a vehicle is first registered in New Zealand.
  • Over the ten year period the Tyrewise fee costs ($278m) are comparable with the current disposal costs ($237M), but $207 Million from the Tyrewise Fee directly translates into economic benefits for society including investment in a new ELT recycling industry, increased employment and export opportunities.
  • The preferred scenario cost includes both “push and pull” incentives to encourage investment more rapidly than what might occur if the market was left to fund this infrastructure itself.
  • The incentives include provision for full subsidy of transport costs via the transport incentive which has been proposed for years 1-3, and will also help to generate demand for products created from ELTs by Manufacturers/End Users for both existing and new activities as well as a replacement for currently used raw materials.

To read the full report click here.