Van, Truck, Trailer, Bus and Coach Aftermarket News in Ireland

MTS and IRHA jointly oppose inclusion of truck tyres in the pending Environmental Disposal Levy

Midland Tyres Services Ltd (MTS) and the Irish Road Haulage Association (IRHA) have issued a joint-statement expressing their opposition to the inclusion of truck tyres in the pending Environmental Disposal Levy (EDL) scheme, which is due to commence on October 1.

With the strong and universal support of their members and customers, the IRHA and MTS are jointly opposing the EDL levy on truck tyres. The scheme currently intends to charge the EDL at the point of import and is planned for implementation from October 2017.

The two organisations have so far acted separately, including petitioning Denis Naughten, Minister for Communications, Climate Action and Environment (DCCAE) pointing out that the proposed scheme stands to needlessly damage the Irish haulage and the Irish truck tyre sector as a whole.
With the process at a critical decision stage, the two organisations says there is a “huge degree of alignment” between the two and have claimed in a joint-statement that:

“Repak, the organisation charged with handling the consultation, badly mismanaged the process by masking the radical differences between truck and passenger car tyres by combining the two discussions and dragging the truck tyres along until now.”

“Repak, as the administrator of the eventual scheme, isa conflicted, including financially, by having to recover their sunk costs from sizeable future scheme cashflows.”

“Repak has been awarded the consultation and multi-million Euro scheme administration contract without the required EU Legal Tender process.”

“As the largest independent truck tyre distributor in Ireland, MTS waconsulted by Repak early in the process and gave constructive objections and detailed description of MTS’s disposal solution in place – a solution established for decades, self-financing, fully documented and resulting in zero waste. MTS was excluded from further consultation, despite promises to address concerns, and MTS’s solution was never put to the Minister and decision makers at the DCCAE.”

“MTS disposal solution already covers over 50 per cent of the Irish truck tyre disposal market and can easily be deployed for 100 per cent with full transparency, no waste, no damage to the sector and no cost to the Irish taxpayer.”

“The Irish Farmers Association has already established a precedent for agricultural tyres being successfully excluded from the levy, based on end-of-life agricultural tyres having monetary value. This same argument applies to truck tyres making truck and agricultural tyres radically different from passenger tyres, which have no value, resulting in waste/environmental issues.”

“The proposed scheme would be promoting a waste process for all tyres, which is out of line with the EU directive on truck tyres requiring as many as possible to be recycled/remoulded. The proposed Irish scheme has no ‘Sustainability content’ now or longer term and countries like Germany have opted for solutions much more in line with the one used by MTS vs. regulatory schemes.”

The process is currently with the DCCAE, with Minister Naughten having already been petitioned by both IRHA and MTS separately asking for an audience. When / if granted, MTS and the IRHA intend to attend jointly to represent the arguments, and to demonstrate the overwhelming support of the Irish haulage and truck tyre sectors, which continues to grow.

Speaking of the proposed scheme, IRHA President Verona Murphy said: “This issue was first brought to the attention of the IRHA by Repak in which they presented the intended scheme at our HQ. The management team of the IRHA raised many questions to which Repak’s representatives could not answer, but assured us that they would provide answers to the concerns raised and those concerns would be addressed through constructive consultation going forward. Repak never contacted the IRHA again, and the concerns have been ignored. It is with grave concern to the members of the IRHA that the Minister would continue with any scheme with so many questions unaddressed. The scheme as currently proposed does not stack up and the IRHA and its members will not support the scheme nor will they accept monetary increases to the current arrangement.”

Mark Kane, the Managing Director of MTS also commented: “The consultation process has been so deeply mismanaged as to give the Government a completely false picture of what is actually going on in the sector. It is utterly shocking that such a damaging and needless levy can be brought onto a vital sector of the Irish economy in this deeply flawed way. The Government are being set up for an own goal. Truck tyres affect haulage of essential goods and supplies, construction and recycling/rubbish collection among others. Basically, these sectors keep Ireland going – and with the universal support we are receiving from the industry and so much at stake in terms of business viability, jobs and livelihoods – we are determined to fight this all the way.”