ACCC re-authorises Tyre Stewardship Scheme

24 May 2018

The ACCC is granting authorisation to Tyre Stewardship Australia (TSA) to continue its Tyre Stewardship Scheme, which is designed to increase the recycling of tyres and use of products made from recycled tyres.

Tyre Stewardship Australia sought authorisation of specific provisions of the guidelines that govern the operation of the Tyre Stewardship Scheme. Broadly, those provisions impose obligations on participants to commit to the environmentally sound use of used tyres and to only deal with accredited businesses along the tyre supply chain.

Participants in the scheme are businesses involved across the entire tyre supply chain and include tyre retailers, importers, recyclers and collectors, fleet operators and local governments across Australia.

The scheme also imposes a levy of 25 cents per tyre on tyre importers. The levy is not designed to directly fund recycling of used tyres, but to find and promote new uses for tyre-derived products. 

“We have decided to authorise provisions of this scheme for a further six years, as the scheme is likely to increase the number of tyres being disposed of in an environmentally friendly way and result in a net public benefit,” ACCC Commissioner Roger Featherston said.

“Our authorisation is not an endorsement of the scheme. Indeed, whilst some progress has been made since the scheme was first authorised in 2013, we consider there is more room for further progress.  We note that TSA is improving the way it verifies where exported tyres end up, as well as tightening its processes for accrediting and monitoring industry participants.”

“It is important that TSA continues to engage with stakeholders in the tyre supply chain and governments to continue improving the outcomes of the scheme.”

“The ACCC will look closely at the scheme’s performance over the six years of authorisation. If the participation by mining companies and vehicle importers in the scheme does not improve, we would urge governments to consider regulation.”

The ACCC previously released a draft determination proposing to grant authorisation for the continuation of the scheme on 27 April 2018.

Authorisation is a public process which allows the ACCC to grant protection from legal action for conduct that might otherwise breach the Competition and Consumer Act 2010. 

Further information  is available at Tyre Stewardship Australia Limited.

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