Independent review of Australia's Tyre Product Stewardship Scheme

An independent review of the national Tyre Product Stewardship Scheme (TPSS), administered by Tyre Stewardship Australia (TSA), shows commendable work has delivered public benefit at small cost to the economy but that the scheme has reached a turning point.

The review was commissioned by TSA to satisfy the Australian Competition and Consumer Commission (ACCC) requirements of authorisation.

It involved a close examination of efficiencies and operations and consultation with key stakeholders from:

• federal, state and territory and local governments;
• industry sectors including tyre importers and retailers, manufacturing, mining and other off-the-road tyre segments, vehicle fleet operators and the tyre resource recovery sector;
• global circular economy and stewardship peers;
• ESG advisors and researchers.
   

Top-line findings of the review include:

• The public benefits of the TPSS significantly outweigh any public detriment.
• TSA has administered the TPSS to improve environmental stewardship.
• TSA exhibits a high level of corporate governance understanding and practice in its administration of the TPSS.
• That under its current voluntary scheme structure, the TPSS has reached a plateau which limits its capability to do more and poses an existential risk of financial non-viability were a contributor to depart.
• That a regulated scheme structure would enable the TPSS to significantly expand its activities and pursue strategic opportunities and innovation for stakeholders in the circular tyre economy and bring it line with the ‘cradle to grave’ approach taken by other schemes around the world.
   

“This is a hard-core scorecard for the scheme’s successes and failures,” said TSA CEO Lina Goodman.

“It shows us what our stakeholders need from a product stewardship organisation, where there are failures which impact the recovery of end-of-life tyres in Australia and provides recommendations that will advance Australia’s product stewardship of tyres locally.

“It also raises some critical questions for TSA, as the administrator of the scheme, for the regulators and for all the stakeholders in the circular tyre economy.

“Has a voluntary scheme for end-of-life tyres reached the peak of its ability to make a difference? Who is being left behind under the current structure? How can true circular economy principles be supported and advanced through a product stewardship organisation?

“What are the potential opportunities a regulated scheme would allow us to pursue, particularly for regional, rural and remote stakeholders?

“Can we do more to foster local manufacturers to use tyre-derived material? Is there a need to think about a scheme design that supports investment for greater local recovery of used tyres?

“It is questions like these which we now need to explore with all the stakeholders in the circular tyre economy, both within Australia and globally.”

Read the full report at https://www.tyrestewardship.org.au/assessments/.

Image credit: iStock.com/Ogdum