The Irish Tyre Industry Association (ITIA) has described Environment Minister, John Gormley's plan to increase tax on tyres as "a stealth-tax disguised as a green tax and one that can actually impact on road safety". The association also contends that the tax would see hundreds of jobs lost to Northern Ireland. The warning is contained in a submission to the Minister, who is believed to be considering the tax increase as a way of financing the disposal of old tyres.
"At a time when everyone is under greater financial pressure, plans by Minister Gormley to further increase tax on tyres will inevitably lead to even higher prices for buyers, and that could lead to delays by drivers in replacing tyres that have reached the minimum thread depth for road safety", commented Dave Naughton, President of the Irish Tyre Industry Association (ITIA).
Research by the ITIA reveals that up to 60 percent of motorists now allow their tyres to wear below the legal tread depth limit of 1.6mm before changing them - and it warns that the current climate will lead to further deferral of purchases, with potentially lethal consequences.
A recent RTE Prime Time Investigates programme dealing with the illegal stockpiling and illegal disposal of tyres by rogue tyre collectors has put the Minister under pressure to act. However, the ITIA points out that the problem is to do with Government not providing the resources for enforcing the existing laws governing waste tyre disposal and collection and that dealers will be able to avoid the disposal tax by simply importing tyres from Northern Ireland.
The Society of the Irish Motor Industry commented on the issue by saying it was 'concerned with any proposal to impose an additional tax on tyres that will further disadvantage the compliant, relative to those who operate below the radar.'