Witness _8June2017

Page 1

June 8, 2017

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Tyre collection stalemate Redisa halts all collections of old rubber, warns of closure if SARS keeps levies ALWYN VILJOEN WHEN Wheels asked Hermann Erdmann, CEO at the Recycling and Economic Development In­ itiative of South Africa (Redisa), in April 2016 how a new tax on tyres would impact the Redisa recycling fee, he had to plead ig­ norance of government’s inten­ tions. But this week, Erdmann an­ nounced 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 implemen­ tation 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 na­ tional Budget speech, would re­

place the existing waste man­ agement fee of R2,30 per kilo­ gram on every tyre sold, and if not, what other amount govern­ ment 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 au­ dited by three auditing firms — KPMG, PricewaterhouseCoop­ ers and Ernst and Young. This week, Erdmann con­ firmed Redisa had not been allo­ cated any funds post February 1. “As a result of not having re­ ceived any funding, and until, and if, government funding has been received, Redisa has no choice but for the time being to cease tyre collections,” Erd­ mann said. He emphasised that this was not where Redisa wanted to be.

Hermann Erdmann. PHOTO: FILE “We informed government in February 2016 that should fund­ ing be removed from the indus­ try, wind down would be neces­ sary. “This financial view was au­ dited by PWC on instruction from government. “Our understanding from government communications

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was that this was just a change in funding model but that the in­ dustry would be continue to be funded. Redisa is taking every step to secure the funding neces­ sary to reinstate its collections. “To this end we have notified the Department of Environmen­ tal 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 engag­ ing with the department to se­ cure the allocation which would allow Redisa to resume collec­ tions,” 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 in­ terest of all parties involved, this

includes preserving the jobs and the network created,” said Erd­ mann. Redisa has filed papers in court with regards to its posi­ tion. Meanwhile, all tyre shops and affected persons are advised to contact the Waste Manage­ ment Bureau at the Department of Environmental Affairs for fur­ ther information on legally dis­ posing 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 mi­ cro­collectors; • Redisa depots will remain open but will not be accepting any deliveries; and • Deliveries to processors will continue as scheduled until further notice.

SPIN BASH The old bus depot at Mason’s Mill will on June 16 echo to the engines of Msunduzi’s top drivers against a few of the province’s best crews. A Team 44 T­shirt gains the wearer free entry from 11 am, the rest pay R50 for adults and R20 for kids. The crews involved in staging the event promise a good day of fun for the whole family. For more information, call Wanda Mvelase on 078 116 1965. IMAGE: SUPPLIED


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