New recycling levy 'could cost 500 jobs'
An industry group is claiming that a new levy to pay for the recycling of used tyres could cost hundreds of jobs.
The measure is being introduced by Environment Minister Alan Kelly.
The proposed levy – in the form of a Producer Responsibility Initiative from the Department of the Environment - will mean that motorists could end up paying over €3 extra per tyre, while truck owners will pay as much as €10 more per tyre and farmers even more: €25 per tyre, according to the Independent Tyre Wholesalers and Retailers Association (ITWRA).
The group is claiming the measure could lead to 500 job losses, as motorists head north to buy cheaper tyres.
“If this extra cost is introduced for motorists, transport companies and those in the agri-business, it will drive business away from legitimate tyre sellers and that will mean job losses in every town and county and even businesses being forced to close”, a spokesperson for ITWRA said.
“A motorist can simply cross the border into Northern Ireland, buy their tyres there and pay no levy while a transport company can purchase new tyres for their truck in the UK where the same situation applies. If this happens then we are talking about local dealers closing and jobs being lost.”
It also said that the industry is very environmentally conscious and responsible and already operate a satisfactory, licensed used tyre disposal scheme in the Republic – one which does not impose a levy on the motorist.
“The tyre trade is strongly opposed to this new tax on motorists”, the spokesperson said pointing out that the new regulations are not being introduced as a result of an EU imposed Directive but rather as a national policy.
“Minister Kelly will force this new Irish Policy on the Irish Public and tyre traders and there is little room for negotiation.”
