In regard to the ‘Today Tonight’ episode of 19 August 2010 which revealed Australian tyre retailers were making fraudulent claims, imposing a ‘supposed’ government environment levy for tyre disposal when none exists; and also contracting operators who ship to Vietnam, selling to smugglers who then illegally ship into China (where they are banned for importation):

(1)   What action has the Commonwealth taken to investigate false claims that the disposal of tyres are subject to a government levy.

(2)   Has the department asked the Australian Competition and Consumer Commission to investigate whether these retailers are making false or misleading environmental claims.

(3)   How does the department ensure that waste tyres are properly disposed of.

(4)   Is the department aware that overseas disposal of waste tyres is threatening the viability of domestic tyre recyclers.

(5)   Is the department aware that two Australian companies, Reclaim Industries Limited (an ASX-listed tyre recycler) and Tyrecycle have reported significant financial difficulties since the European Union banned export of tyres into much of south-east Asia and, as a consequence smugglers then started targeting Australia.

(6)   What chain of custody processes has the Commonwealth put in place to ensure that the used tyres of the Government fleet of vehicles are not smuggled into China.

(7)   Who has the Government fleet tyre contract.

(8)   How is it best practice regulation to view the export of used tyres for an international smuggling ring as preferable to a domestic product stewardship scheme.

(9)   How will the department stop tyre retailers charging as much as $6 per tyre for ‘tyre recycling’ or ‘mandatory government levies’ when no such levy currently exists.

(1)   In November 2009 the Environment Protection and Heritage Council (EPHC) agreed to work with tyre industry stakeholders to put in place schemes that will develop the market and gain more value from the tyres that reach end of life in Australia each year. A Tyre Implementation Working Group (IWG) with representatives from the Australian Government, state governments and the tyre industry was formed for this purpose in May 2010 for 12 months. As part of its deliberations the Tyres IWG has explored allegations associated with fees and charges for the disposal of used tyres. I am advised the Department of Sustainability, Environment, Water, Population and Communities (the department) also understands that the Australian Competition and Consumer Commission has investigated this issue.

(2)   No.

(3)   Under the Australian Constitution the states and territories have primary responsibility for waste management including end of life tyres. Relevant legislation varies between jurisdictions. The Government, through the EPHC, is committed to working with tyre industry stakeholders on the development of product stewardship initiatives for end of life tyres The department also manages Australia’s obligations in relation to waste under the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. The export of end of life tyres needs to be in accordance with Australia’s obligations under the Basel Convention and the Commonwealth’s Hazardous Waste (Regulation of Exports and Imports) Act 1989; and with the legislation of the destination country.

(4)   The department advisers it is aware of claims made by the Australian Tyre Recycling Association (ATRA) views on the issue

(5)   The department advisers Reclaim Industries Limited and Tyrecycle are represented by ATRA on the Tyre IWG (refer to answer 4).

(6)   The export of all end-of-life tyres, regardless of their ownership, needs to be in accordance with Australia’s obligations under the Basel Convention and the Commonwealth’s Hazardous Waste (Regulation of Exports and Imports) Act 1989; and with the legislation of the destination country.

(7)   All tyres for the Australian Government vehicle fleet are sourced under the whole-of-government vehicle fleet management and leasing contract with LeasePlan Australia Ltd.

(8)   The Government, through the EPHC, is committed to supporting the tyre industry to establish a domestic product stewardship scheme for end of life tyres.

(9)   Investigation of false or misleading claims made by tyre retailers in relation to tyre disposal fees or charges is the responsibility of the Australian Competition and Consumer Commission and State and Territory consumer protection agencies.