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| Redisa's thread is running out. |
WHEN Wheels asked
Hermann Erdmann, CEO at the Recycling and Economic Development Initiative of
South Africa (Redisa), in April 2016 how a new tax on tyres would impact the
Redisa recycling fee, he had to plead ignorance of government’s
intentions.
But this week, Erdmann announced his impatience with the process
and said Redisa had to stop collecting old tyres from tyre dealers until
government gives clarity on the issue.
This comes after government changed the Redisa funding model, based
on the implementation of a tyre levy collected by SARS, effective from
February 1, 2017. To date, no one seems to know if the new tyre levy, which was
announced in the 2017 national Budget speech, would replace the existing waste
management fee of R2,30 per kilogram on every tyre sold, and if not, what other
amount government wants to slap on all new tyres sold.
The amounts involved are huge — in 2014 Erdmann told Wheels the tyre levies to Redisa amounted
to R620 million a year, each cent of which was audited by three auditing firms —
KPMG, PricewaterhouseCoopers and Ernst and Young.
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| Hermann Erdmann |
Erdmann confirmed Redisa had not been allocated any
funds post February 1.
“As a result of not having received any funding, and until, and if,
government funding has been received, Redisa has no choice but for the time
being to cease tyre collections,” Erdmann said.
He emphasised that this was not where Redisa wanted to be. “We
informed government in February 2016 that should funding be removed from the
industry, wind down would be necessary.
“This financial view was audited by PWC on instruction from
government.
“Our understanding from government communications was that this was
just a change in funding model but that the industry would be continue to be
funded. Redisa is taking every step to secure the funding necessary to reinstate
its collections.
“To this end we have notified the Department of Environmental
Affairs of the environmental and business ramifications of ceasing
collections.
“In the minister of Finance’s Budget Review for 2017, R210 million
was allocated to the Waste Bureau for Redisa/Waste Bureau and we are engaging
with the department to secure the allocation which would allow Redisa to resume
collections,” added Erdmann.
He is, however, confident that an amicable settlement with
government can be reached.
“Our focus is on reaching an agreement that is in the best interest
of all parties involved, this includes preserving the jobs and the network
created,” said Erdmann.
Redisa has filed papers in court with regards to its position.
Meanwhile, all tyre shops and affected persons are advised to contact the Waste
Management Bureau at the Department of Environmental Affairs for further
information on legally disposing of waste tyres at 012 399 9803, or the DEA call
centre at 086 111 2468. — WR.
Until further notice:
• Redisa will no longer collect waste tyres from
registered collection points, including micro-collectors;
• Redisa depots will remain open but will not be
accepting any deliveries; and
• Deliveries to processors will continue as
scheduled until further notice.
