Ontario Scrap Tire Proposal Unfair: OTDA

The Ontario Tire Dealer’s Association has issued a call to the Ontario tire industry to respond to a Provincial government initiative that will add significant costs to both consumers and retailers of tires in the province. In 2003, the Minister of Environment requested WDO (Waste Diversion Ontario) to oversee the development of a diversion program for scrap tires. The primary responsibility for developing, managing and funding the new program was placed on brand owners or importers of tires (called OTS) into Ontario. These tire “stewards” were directed to formulate a plan. The plan, tabled in September, proposes that tire dealers (including dealers that sell new cars) act as stewards instead of brand owners and first importers. Tire dealers will be required to register with OTS (which will become the managing agency) and file their sales of new tires sold in Ontario each month. Every new tire will carry a Tire Stewardship Fee of $4.00 (for passenger and light truck tires) and $6.00 (for commercial truck tires), plus GST and PST. Tire dealers will be required to remit Tax to the Ministry of Finance and pay OTS the fees, net of 15 days from the end of each month. Under the plan, tire dealers must accept scrap tires at no charge (ie: “disposal fees” are prohibited). All scrap tires must be stored according to Ministry of Environment and Fire Marshall Regulations, be free of foreign material, excessive moisture and accessible for efficient pick up. For this handling service, dealers will receive 35-cents per passenger and light truck tire, and 50-cents for commercial tires, which will be deducted from their stewardship fee.

Tire pick ups will be free by registered tire haulers, but the timelines for pick up will be contingent on volumes generated, established on an individual basis by OTS. Storage problems may occur with tire dealers in remote areas where dealers have difficulty getting regular pick-ups. The tire dealers will also pay a surcharge of $2.50/passenger or truck tire and $5.00/commercial tire for any tires with rims. Under the plan, tire dealers will be required to participate in a new manifest program; keep reports and records for five years; and OTS can demand an audit to enforce compliance. The OTDA urges Ontario tire retailers to respond to the Ontario Ministry of the Environment through the OTDA website or directly to the Ministry. Websites are: www.otda.com and www.ene.gov.on.ca