Tyre col­lec­tion stale­mate

Redisa halts all col­lec­tions of old rub­ber, warns of clo­sure if SARS keeps levies

The Witness - Wheels - - FRONT PAGE - ALWYN VILJOEN

WHEN Wheels asked Her­mann Erd­mann, CEO at the Re­cy­cling and Eco­nomic De­vel­op­ment Ini­tia­tive of South Africa (Redisa), in April 2016 how a new tax on tyres would im­pact the Redisa re­cy­cling fee, he had to plead ig­no­rance of gov­ern­ment’s in­ten­tions.

But this week, Erd­mann an­nounced his im­pa­tience with the process and said Redisa had to stop col­lect­ing old tyres from tyre deal­ers un­til gov­ern­ment gives clar­ity on the is­sue.

This comes af­ter gov­ern­ment changed the Redisa fund­ing model, based on the im­ple­men­ta­tion of a tyre levy col­lected by SARS, ef­fec­tive from Fe­bru­ary 1, 2017. To date, no one seems to know if the new tyre levy, which was an­nounced in the 2017 na­tional Bud­get speech, would re­place the ex­ist­ing waste man­age­ment fee of R2,30 per kilo­gram on ev­ery tyre sold, and if not, what other amount gov­ern­ment wants to slap on all new tyres sold.

The amounts in­volved are huge — in 2014 Erd­mann told

Wheels the tyre levies to Redisa amounted to R620 mil­lion a year, each cent of which was au­dited by three au­dit­ing firms — KPMG, Price­wa­ter­house­Coop­ers and Ernst and Young.

This week, Erd­mann con­firmed Redisa had not been al­lo­cated any funds post Fe­bru­ary 1.

“As a re­sult of not hav­ing re­ceived any fund­ing, and un­til, and if, gov­ern­ment fund­ing has been re­ceived, Redisa has no choice but for the time be­ing to cease tyre col­lec­tions,” Erd­mann said.

He em­pha­sised that this was not where Redisa wanted to be. “We in­formed gov­ern­ment in Fe­bru­ary 2016 that should fund­ing be re­moved from the in­dus­try, wind down would be nec­es­sary.

“This fi­nan­cial view was au­dited by PWC on in­struc­tion from gov­ern­ment.

“Our un­der­stand­ing from gov­ern­ment com­mu­ni­ca­tions was that this was just a change in fund­ing model but that the in­dus­try would be con­tinue to be funded. Redisa is tak­ing ev­ery step to se­cure the fund­ing nec­es­sary to re­in­state its col­lec­tions.

“To this end we have no­ti­fied the De­part­ment of En­vi­ron­men­tal Af­fairs of the en­vi­ron­men­tal and busi­ness ram­i­fi­ca­tions of ceas­ing col­lec­tions.

“In the min­is­ter of Fi­nance’s Bud­get Re­view for 2017, R210 mil­lion was al­lo­cated to the Waste Bureau for Redisa/ Waste Bureau and we are en­gag­ing with the de­part­ment to se­cure the al­lo­ca­tion which would al­low Redisa to re­sume col­lec­tions,” added Erd­mann.

He is, how­ever, con­fi­dent that an am­i­ca­ble set­tle­ment with gov­ern­ment can be reached.

“Our fo­cus is on reach­ing an agree­ment that is in the best in­ter­est of all par­ties in­volved, this in­cludes pre­serv­ing the jobs and the net­work cre­ated,” said Erd­mann.

Redisa has filed papers in court with re­gards to its po­si­tion. Mean­while, all tyre shops and af­fected per­sons are ad­vised to con­tact the Waste Man­age­ment Bureau at the De­part­ment of En­vi­ron­men­tal Af­fairs for fur­ther in­for­ma­tion on legally dis­pos­ing of waste tyres at 012 399 9803, or the DEA call cen­tre at 086 111 2468. — WR.

Un­til fur­ther no­tice:

• Redisa will no longer col­lect waste tyres from reg­is­tered col­lec­tion points, in­clud­ing mi­cro-col­lec­tors; • Redisa de­pots will re­main open but will not be ac­cept­ing any de­liv­er­ies; and • De­liv­er­ies to pro­ces­sors will con­tinue as sched­uled un­til fur­ther no­tice.

PHOTO: FILE

Her­mann Erd­mann.

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