Where rubber meets the road

The provisional liquidation of Redisa raises questions over how thousands of tons of tyre waste generated in SA will be managed

Though there is no clarity on the department of environmental affairs’ long-term plan for waste tyre recycling, the ugly spat between the minister and the body tasked with waste tyre recycling has not, as initially feared, resulted in tottering piles of waste tyres.

On June 1, the minister was granted a provisional liquidation order against the Recycling & Eco-

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nomic Development Initiative of SA (Redisa). Management of Redisa is contesting its liquidation. The matter was heard in the Cape high court this month and judgment is awaited.

Hedley Judd of the Tyre Dealers & Fitment Centre Association (TDAFA) says waste tyre collection is working reasonably well under Redisa’s liquidators, though there is no indication of what will happen in the longer term.

Nobuzwe Mangcu, managing executive of the SA Tyre Manufacturers Conference, says collections are taking place as usual in urban and rural areas.

In 2011 SA generated about 246,631 t of waste tyres, of which

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only 4% was recycled and the rest went into landfills. Tyres in landfills take up space, are a breeding ground for insects and bacteria, and uncontrolled burning creates toxic fumes.

Redisa was created to address the problem by increasing recycling and creating jobs in the process. It collected a levy of R2.30/kg on new tyre rubber to be used for waste tyre collection and recycling. Earlier this year the law was changed to make the SA Revenue Service responsible for collecting the levy. Redisa did not comply with the new funding model, resulting in the minister applying for its provisional liquidation.

This was not the only problem. A Carte Blanche programme last year aired industry concerns over the lack of jobs Redisa had created, how it spent its money and the fact that some waste tyres were being exported rather than recycled locally.

In court papers, Redisa argues the minister has no locus standi to apply for its liquidation because the

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department is not a creditor, director or member of Redisa, nor is the organisation funded by government, but by a levy paid by the tyre industry.

Stacey Davidson, a director of Redisa, says it has an evergreen mandate, renewable every five years. In the first five years it established a collection network and the next stage will be to stimulate market demand.

She does not believe government has a replacement plan or the power to take over the organisation established by Redisa’s private management company,

Kusaga Taka Consulting.

Judd says the department called a couple of months ago for industry comment and input on a longer-term plan. TDAFA made a submission on behalf of manufacturers, importers and dealers, but it would be advantageous if the minister or director-general were to facilitate a workshop directly with industry to discuss the options and implementation of a new waste tyre management plan.

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