Despite being a country with a strong environmental focus, New Zealand lags behind other countries in disposing of worn out tyres – the annual total amounts to 3.5 million tyres for passenger vehicles and 400,000 for trucks.
However, this is set to change, with $133,000 of government funding announced for the development of the TyreWise stewardship program. The company responsible for its implementation, 3R Group is working closely with industry shareholders and government to fast track the scheme.
The problem of end-of-life tyres has long been discussed, with several false starts taking place, such as TyreTrack from the early 2000s. Graeme Norton, chief executive of TyreWise, says TyreTrack did little to make a meaningful change in behaviour.
“Tyres were tracked, but only the ones that went to reputable dealers, It ended up measuring only around a third of tyres,” says Norton.
Stewardship programs seek to work with the whole supply chain of a product to ensure that product is tracked throughout its life and disposed of efficiently and in environmentally sound ways.
The list of TyreWise stakeholders is a ‘who’s who’ of the New Zealand auto industry, including the MTA, MIA, IMVIA and AA, as well as Fleetsmart (CardLink), Bridgestone / Firestone NZ, and Dunlop NZ.
What’s unique about TyreWise is that, if successful, it will be the first time a registered scheme has been given priority product status, something that affords regulatory support from the government.
“TyreWise is industry-led, but will be legislated for by the government. We have an observer from the Ministry for the Environment overseeing the process as a stakeholder,” says Norton.
“This helps with the politics of the issue. There are no surprises coming and that should make it easier, because any rule making has been conditioned in from the start.”
Norton offers no certainties in regard to what the finished scheme will look like, if it goes ahead at all. “It would be unfair at this stage to box the government in. All that has happened is the ministry have said is that they are aware of government being part of the answer elsewhere in the OECD; it’s up to us to show them a plan and what involvement might look like”.
Norton says that what the final implementation of TyreWise will look like is up in the air, as are costing options. In Canada each party in the supply chain is registered into a system, such as brand owners, collectors, processors and end users, creating an auditable trail where all money flows are tracked.
Two costing options are to be considered. The first is BOFI, or Brand Owner First Importer. This attaches a sum of money to the tyre when it comes across the border; money then used to make sure the tyre is looked after properly at the end of its productive life.
Norton says that with this system of front-loading costs there is the temptation to build that into the initial cost of the tyre. With the distributor and retailer then adding on top of this, $5 at the front becomes $8 at the end.
The second option is collecting the money at the point of retail when the tyre is sold and a casing fee charged. This is then remitted to a central organisation to make sure the process works.
Norton says that either way the consumer pays, but the retail option may be more transparent.
“Most people want to do the right thing, so if you are up front with what happens to their $5 fee or whatever it may be, they are more likely to support the program. Transparency needs to be a big part of TyreWise – people need to see how the program is doing”
“There is still work to be done on a lot of matters, such as whether the fee applies to the tyres coming in on cars, or just those purchased as standalone units”.
The move to implement an end of life tyre program was first put forward by the government in early 2011, having received the framework for end-of-life tyre management from the World Business Council for sustainable development.
3R, along with the MTA was asked to corral stakeholders to come together with a plan which the minister could support. The tyre working group at the World Business Council comprises 80% of the world’s tyre manufacturers, bringing broad experience across various markets.
“There are a number of countries with successful schemes,” says Norton, “but these are set in a different context. Rather than just copying these we need to take a range of factors into account such as our own culture and way of legislating, and work together to create a collaborative outcome.”
Final end of life solutions may take on a number of forms, with the ministry for the environment suggesting three main forms. Energy recovery sees tyre-derived fuel for cement kilns, smelters, paper mills and power stations or blasting material for mining.
Civil engineering uses include retaining walls, building foundations, paving roads, erosion control, stemming or landfill engineering.
Material recovery puts the tyre to use in the production of steel, new tyres, road surfacing, flooring and mats, moulded products (e.g., speed humps, crash barriers) or adhesives.
With three of seven milestones completed, Norton says that the remaining five should be completed, and results published by March 2013.
The next five items on the agenda for the stakeholder group are: Investigate alternative uses, identify options, identify industry-preferred option, consult with industry stakeholders, and scheme launch preparation.
Stakeholder meetings have also bought end of life vehicle discussions to the forefront, with Norton saying the success of the TyreWise discussions have shown how a similar program for vehicles might progress.
“If TyreWise goes well, watch this space. It is fair to say these things are being talked about and something may crop up in the next few months,” says Norman.
As part of the development of Tyrewise a series of public consultation meetings will be held to ensure industry has an opportunity to have their say. These can be found online at tyrewise.co.nz, with the next taking place as part of the Scrap Metal Recyclers Association annual meeting in Auckland, running from July 19-21 at the Holiday Inn, Auckland.
Anyone interested in attending – should contact Tyrewise on 0800 897 394 or email info@tyrewise.co.nz
