The ACCC is proposing to grant authorisation for the Tyre Product Stewardship scheme to continue for a further 3 years.
The Tyre Stewardship Australia (TSA) implemented scheme aims to increase the number of tyres being recycled and the use of tyre derived products in environmentally appropriate ways in Australia and overseas.
Since the ACCC first authorised the scheme in 2013, TSA has collected a levy from participating tyre importers and retailers and has directed over $9 million of funding to projects. TSA also raises awareness of the value of recycled tyres and the use of sustainable tyre-derived materials.
"Continuation of the scheme will lead to a reduction in the number of tyres being stockpiled, dumped in landfills or being burned for fuel in an environmentally unsustainable fashion. It will likely result in environmental, public health and safety benefits," ACCC Deputy Chair Mick Keogh said.
"Reducing stockpiles of tyres also lowers the risk of illegal and unregulated fires, toxic gases and chemicals leaching into local environments as well as removing breeding grounds for pests such as mosquitos and other vermin."
"This is a growing problem as the number of tyres reaching end of life each year in Australia has increased rapidly, from 143,000 tonnes in 2018-19 to 225,000 tonnes in 2022-23," Mr Keogh said.
The ACCC notes TSA's concern that the voluntary nature of the scheme limits its effectiveness. A number of companies who import or manufacture tyres or vehicles, or who sell tyres, have chosen not to participate. As have most mining companies, where their remote location significantly increases the cost of transporting end of life tyres to recycling facilities.
"The ACCC encourages TSA to consider ways to encourage greater involvement from all sectors of the industry, particularly mining companies, to take part in the scheme," Mr Keogh said.
With the current authorisation to expire on 15 June, the ACCC has granted interim authorisation to allow the Scheme to continue while the ACCC completes its assessment.
The ACCC is seeking submissions in response to the draft determination by 28 June 2024 before making its final decision.
Further details about the application and how to make a submission are available on the ACCC's public register: Tyre Stewardship Australia Limited
Background
Tyre Stewardship Australia Limited (TSA) operates the Tyre Product Stewardship Scheme in accordance with its Guidelines, which set out the commitments that Scheme Participants are required to meet. The Scheme is funded by 16 levy paying tyre manufacturer-importers and car manufacturers.
The Scheme was first authorised in 2013 and was most recently re-authorised in 2018.
A product steward, such as TSA, is responsible for overseeing the entire lifecycle of a product, from importation and production through to disposal and recycling. The goal is to ensure that products are managed in an environmentally responsible and sustainable manner, minimising negative impacts on the environment and human health.
When assessing applications for authorisation relating to product stewardship schemes, the ACCC seeks to ensure they do not unduly restrict competition.
While end-of-life tyre product stewardship is listed as a priority for the Minister for the Environment and Water, the ACCC understands it is uncertain whether and when government will decide whether to co-regulate the Scheme. Therefore, the ACCC has considered this application in the context of it being a voluntary product stewardship scheme.
Note
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct would be likely to outweigh any public detriment.
