The Ontario Tire Dealer Association (OTDA) and the Ontario Tire Collectors Association (OTCA) have created a plan to reward-rather than tax-consumers for buying recycled rubber products.
Called the Ontario Tire Recycling and Economic Development (OnTRED), the program is touted as an alternative to a $4 tax on new passenger tire purchases and a $6 tax on light truck tires proposed by the Ontario government.
The tire tax, which is being considered by the Ontario Minister of Environment, is estimated to cost Ontario consumers almost $200 million (Canadian) over five years, according to the associations.
OnTRED involves these key objectives:
* A ``buy recycled'' rebate system that rewards consumers for purchasing a wide range of products containing recycled rubber;
* The funding of a registration and approval program for scrap tire collectors and a tracking system for ensuring scrap tires do not become stockpiled;
* A stockpile inventory, moratorium and remediation program; and
* Program funding not by consumers but instead by manufacturers and importers selling tires into the Ontario market.
OnTRED's rebate system would be similar to provincial programs that provide rebates on sales of energy efficient appliances, according to the proposal submitted by the OTDA and OTCA. Rebates would be awarded to any purchasers of products-including tire manufacturers-and the rebate amounts would be based on the weight of recycled content in a product as well as that product's relative value.
However, the proposal does not encourage offering rebates on tire-derived fuel (TDF). The associations called the use of TDF by cement kilns ``an activity that destroys the inherent value of tires as a recyclable material, undermines recycled rubber markets and which generates toxic air pollution as a result.''