What are the benefits of TRACS versus the costs of the alternatives?
The Regulations do not impose an environmental levy but allow the market to decide the cost of collection and reprocessing. This means retailers now have the legitimate ability to cover a waste management overhead. With regulation and control comes a level playing field where each business can incorporate the cost of responsibly managing their internal waste. There is no responsibility for historical practice on the tyre industry.
Farmers have retained access to waste tyres and there is now an increased availability of waste tyres and defined available market quantity for investors, leading to more competition in collection. The tyre sector now has a low cost and efficient compliance scheme which does not levy a deposit or collect a tipping fee.
The alternative is the imposition of a scheme by the Minister that requires additional information to be submitted, that will require a mandatory non-visible deposit charge to be passed down through the supply chain and administered by a scheme that will also control the waste flows.