Government introduces tire-recycling program

St. John’s – The provincial government has launched a new tire recycling program, which also includes a new tax on tire.

More information:

Environment Canada – http://www.ec.gc.ca/epr/default.asp?lang=En&n=AC6833D7-1

MMSB announces new approach to used tire recycling program

NLIS 4
November 8, 2004
(Environment and Conservation)

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Tom Osborne, Minister of Environment and Conservation, and John Scott, chair and CEO of the Multi-Materials Stewardship Board (MMSB), announced today that MMSB is moving forward with a new long term plan for the used tire recycling program and is immediately seeking tenders from parties interested in helping MMSB establish permanent infrastructure for the collection of used tires generated under the program.

This new contract will provide for an integrated used tire collection service that will include mobile collections from all tire retailers, the establishment of appropriate tire transshipment stations throughout the province, and transportation services for delivery of the tires to central storage yards and/or tire recycling facilities that will ultimately be designated by MMSB. MMSB intends to seek proposals later this fall for the actual processing and recycling of used tires through a separate request for proposals.

Minister Osborne said government remains committed to a provincial tire recycling program. “I am confident that the new approach to be implemented by MMSB will provide a sustainable and effective solution to the challenges that have confronted the program over the past several years,” said the minister. ” It is important that we get the tire recycling program back on track permanently and today’s announcement represents a positive step in that direction.”

Mr. Scott explained that, on a go-forward basis, the used tire recycling program will be designed so that the collection of tires will be separated from their processing and recycling. Furthermore, MMSB will assume direct responsibility for collections on a permanent basis throughout the province. “This will ensure that a stable, stand-alone and secure system exists for tire collections and will avoid the risk of complete collapse of the system again if end markets for recycled tire products weaken at any point in the future.”

Minister Osborne noted that markets for recycled tire products in North America remain a challenge, but they are starting to recover. He said that a number of private sector parties, both within and outside the province, have expressed a business interest in tire recycling in Newfoundland and Labrador. “This is encouraging, but we intend to proceed in a measured way with a proposal call for processing and recycling to ensure we obtain the best possible outcome for the province. This will also give all interested parties a fair and equal opportunity to participate.”

MMSB will be structuring the proposal call in a manner that supports a flexible made in Newfoundland and Labrador business model for tire recycling, where the tires collected by MMSB could be made available to a number of potential processors, possibly at different points in time, to support multiple products for diversified markets, both locally and externally. “This offers the opportunity to provide for a more sustainable approach over the long term, as used tires will be able to be directed and redirected in response to changes in the marketplace, thus eliminating the risk of over reliance on a single processor with a single market. At the same time, sufficient flexibility will be incorporated in the proposal call such that a single ‘take all’ processor will still be able to be considered if it can be demonstrated that a specific business proposal along these lines is indeed a viable and sustainable approach,” said Mr. Scott. It is expected that decisions on specific processing proposals will be made by next spring.

In June 2004, the contractor responsible for operating the used tire recycling program withdrew its services due to weak markets for recycled tire crumb products in North America. MMSB subsequently assumed direct responsibility for all operational aspects of the program on an interim basis.

MMSB’s priority under its contingency plan was to address the stockpile of used tires that had accumulated over time in various retailer locations, municipal waste disposal sites, and other sites that had been used as temporary storage yards. Short-term contracts were entered into by MMSB to address these priorities and to provide ongoing collection services for tire retailers throughout the province. MMSB has collected and securely stored over 250,000 used tires since assuming direct responsibility for the program. MMSB will continue to seek markets for the permanent disposal of the tires under its control while the call for proposals for longer term processing and recycling is underway.

Parties wishing to be considered for the current tender for tire collections should contact the Government Purchasing Agency to obtain the tender documents. The closing date for receipt of tenders is November 30, 2004.

MMSB is a provincial Crown agency that reports to the Minister of Environment and Conservation. MMSB supports modern waste management programs in the province, with a particular focus on waste reduction, recycling and public education, in order to ensure a clean and healthy environment throughout Newfoundland and Labrador.

Media contact:
Karen O’Neill, MMSB, (709) 753-0949
Sonia B. Glover, Environment and Conservation, (709) 729-2575

2004 11 08                  12:55 p.m.

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