About 4 years ago, a government funded charitable trust was set up to investigate and report on alternative tyre disposal methods; the premise for such charitable trust being that our environment was being endangered by the alleged illegal dumping of vast numbers of old tyres. Such urban myth had been perpetuated by the chattering classes and was surprisingly picked up by an assemblage of multinationals and local entities, subsequently known as “Tyrewise”, who should have known better.
Sure, these entities were well intentioned, albeit misguided, but they gave rise to Tyrewise which sought to render used tyre disposal in New Zealand to a central planning initiative worthy of North Korea. This scheme proposed a $5.50 and higher tax on every tyre imported and disingenuously claimed that this would replace the current tyre disposal fee of $2.50 to say $3.5 currently charged by retailers. But in reality, this new border tax, after addition of wholesale and retailer margins and gst, would have increased the retail price of tyres by at least $10.00 and some cases up to say $20.00 or more.
There is no need for some quasi Government body like Tyresafe to control second hand tyre disposal, the current private free enterprise tyre disposal operators are doing an excellent job. They operate a competitive, highly efficient, environmentally safe service and shred used tyres for recycling in New Zealand or for export to China for recycling there.
Anecdotal reports suggest that Tyrewise was desirous of largely curtailing export of shredded tyres to China due to some paternalistic notion that the Chinese could not be trusted to do the job properly.
It is axiomatic that schemes like Tyrewise are aggressive price loaders. As a monopoly, there is no competition, so prices keep getting racked up. The future would only feature price rises, price reductions being merely a dream. Guess who pays for largesse like this? Yes, you the motorist and taxpayer!
Tyrewise has been a major concern to smaller independent tyre disposal companies who had concluded they were going to be largely excluded from the market. Tyrewise had called for submissions from interested parties but cognisant that the conclusion was preordained, some of them, and other parties too, wisely elected to make representations elsewhere.
Thank goodness for National Party backbenchers! The Tyrewise scheme has been dumped, for now at least, giving rise to the continuance of our efficient, competitive and economic free enterprise tyre disposal model.
Our society is already overburdened with large numbers of ostensibly do-gooder quasi government bodies operating on the premise of they know what’s best for us. We do not need another!
We are well known to two of the entities engaged in Tyrewise who will shortly be in receipt of our missive in this matter. There was also an individual with a personal agenda who has now been comprehensively neutralised.
This blogs title “Tyrewise Debacle” was gleaned from an “autotalk” blog dated 02-06-2015 http://autotalk.co.nz/news/pissed-off-end-of-life-tyre-debacle in which David Vinsen, CEO of the IMVIA stated “The government has spent hundreds of thousands of dollars over the past four years, in bringing together all groups with an interest in tyre recycling to agree to a solution to tyre the problem” and then proceeded to lambast our government for wasting this money.
Hello, the mere fact that money is spent researching some proposition does not represent an obligation to proceed with such proposal if it is found lacking.
Actually David, Better Tyres would love to know how this taxpayers money, which as you say was hundreds of thousands of dollars, was spent. Given that Tyrewise is a registered charity, we are 99% certain we will have access to its accounts in due course. We will publish them with our critique when they become available.