In an announcement and direction letter dated February 9, 2012, the Government of Ontario’s Minister of the Environment issued new direction to Waste Diversion Ontario (WDO) requiring a review of Stewardship programs in the province, including the Used Tires Program (see Appendix below).
Since its launch in September 2009, Ontario Tire Stewardship (OTS) has recycled over 33 million tires and has achieved an average diversion rate of 96 per cent. This phenomenal success is a result of our collective commitment to diverting tires from burning and landfills, and is a testament to the effectiveness of the incentives put in place to stimulate the growth of the Ontario tire recycling industry. Since the launch of the program, this sector has invested over $15 million annually into the Ontario economy to develop Ontario’s tire recycling industry, supporting the growth of the sector and the 500 plus direct manufacturing jobs.
Through the program’s investments in promotion and education and market development activities, we have seen growth in consumer awareness about the importance of prolonging the life of tires, and Ontario consumers, institutions and businesses are seeking to use more Ontario-manufactured recycled tire products. OTS remains committed to continuing to deliver a high-impact program that helps our environment and economy.
In its letter to Waste Diversion Ontario (WDO), the Ontario Minister of the Environment announced new direction to WDO which could require fundamental changes to the way Stewards fund the Used Tires Program. The announcement of this new direction was made without consultation with OTS, or an apparent regard for the impact it would have on the program, Stewards and the tire market.
While OTS is continuing to work with WDO and the Ministry of the Environment to better understand the implications from this announcement, and what direction may be required for the future delivery of the program, the potential negative impact of the Minister’s direction on the continued success of the program cannot be ignored.
“As representatives of the companies that supply tires and which are obligated to fund and operate the Used Tires Program in Ontario, the OTS Board disagrees with the Minister’s direction to fundamentally change the way Stewards fund the Used Tires Program and believe that it will have a significantly negative impact on its success, the support from Stewards and put at risk the still maturing scrap tire recycling industry in the province,” said OTS Chairman, Glenn Maidment. “Since its launch in September 2009, OTS has exceeded the objectives laid out in the plan, and has operated with support from Stewards, tire recyclers and tire consumers. Our current understanding of the direction from the Minister, suggests that the Government is seeking to impose a funding “fix” on the Used Tires Program, even though no problem currently exists. We can only hope that we will have an opportunity to work with the Minister to ensure this action does not result in the undoing of the progress made in Ontario to date.”
“Having been advised of the new direction to WDO moments before the announcement was made public, we are still evaluating the impact on the program,” said Andrew Horsman, Executive Director of OTS. “Any changes this fundamental to the program’s financial model need to be considered very carefully. The uncertainty this creates for Stewards and in the market puts many of the gains we have made to date at risk. Unfortunately, this new direction from the Minister may result in OTS having to review all aspects of the program, including how we invest in the Ontario tire recycling industry. Given the newness of many of the investments made in Ontario — some introduced only in the last year — the result of these changes may have a negative impact on the industry and slow or erode the growth of the sector and the manufacturing jobs it represents.”
OTS will continue to focus on our normal course of business, including securing approval from WDO of a new program budget to ensure a rational funding model for the long-term sustainability of the program. Operationally, OTS will continue to work with Collectors, Haulers, Processors and Recycled Product Manufacturers and will process Claims as usual. OTS will continue to advise as the situation develops.
We look to our stakeholders for continued support for our program and assistance in delivering an industry leading program. OTS will provide updates on any proposed changes to the program as a result of this direction from the Minister as soon as we have them. All relevant information will be posted on the OTS website at www.ontarioTS.ca.
February 9, 2012
Ontario is creating an action plan for diverting waste from landfills and keeping harmful chemicals out of our communities while protecting consumers from unnecessary charges.
The government is implementing changes to programs and policies under the Waste Diversion Act to ensure that:
As a first step, the government today released a new regulation that will ensure producers pay the actual cost of waste disposal instead of a projected cost, which is currently the case. This would change the payment system from one based on per-unit of packaged material to a lump-sum system. This is an industry-funded solution that puts waste diversion on a more sound financial footing.
The government is also directing Waste Diversion Ontario to undertake a detailed review of Stewardship Ontario’s budgets and expenditures.
Moving forward, new steps will be added to the action plan as the Ministry of the Environment examines every tool available to protect consumers, control costs for municipalities and keep more waste out of our landfills and waterways.
