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TSA News > Media Release: Government can unlock investment and local jobs through mandatory procurement policies
Media Release: Government can unlock investment and local jobs through mandatory procurement policies
5 July 2024
Government procurement and a stronger product stewardship approach are the keys to unlocking the hundreds of local jobs that can be created by processing and using the 500,000 tonnes (the equivalent of 62.5 million passenger tyres) of used tyres generated in Australia, each and every year.
Speaking at the NSW Parliamentary Inquiry into Procurement Practices of Government Agencies, Tyre Stewardship Australia’s Chief Executive Officer, Lina Goodman said government must use the weight of both its procurement power and product stewardship regulation to drive the investment needed to create circular economy jobs – amplifying Australia’s manufacturing sector and stimulating end markets for recycled products.
Goodman warned that the markets for recycled tyre products have plateaued and are now at risk of failing. “Without the practical and effective interventions by government of both procurement and product stewardship regulation, many of these markets cannot and will not grow.”
By using a product stewardship mindset to procurement, there are some straightforward changes that could be made now that would have significant positive impact, such as mandating crumb rubber in road asphalt, avoiding single-use tyres by supporting retread in government bus fleets and contracts, and by only buying tyres from brands and retailers that are voluntarily participating in Australia’s current voluntary product stewardship scheme.
“Progressive countries and governments have used the weight of government procurement and regulation to successfully create jobs and develop markets using recycled materials.”
Goodman said government procurement and the industry, through Tyre Stewardship Australia, can work in unison to create circular economy jobs that process and re-manufacture products from recycled material.
“We only have to look to Canada where government has effectively used regulation through tyre product stewardship to support initiatives, incentives and innovation in manufacturing using recycled materials.
“One Canadian based rubber product manufacturer shared that their revenue increased tenfold as a direct result of government intervention in the form of tyre product stewardship regulation. And in turn, created circular economy jobs, increased the local consumption of used tyre material, and created a thriving product line sold across North America.”
The same can be achieved in NSW and more broadly across Australia through stronger mandatory government procurement that looks at the lifecycle and whole of life impacts of a tyre rather than the just the lowest price, coupled with strong product stewardship regulation.
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Background on Tyre Stewardship Australia
Australia’s tyre product steward was established in 2014 to implement the national voluntary Tyre Product Stewardship Scheme (TPSS) – an ACCC-authorised industry framework to reduce the environmental, health and safety impacts of the 540,000 tonnes or 67.5 million Equivalent Passenger Units (EPUs) of used tyres generated in 2022-23.
TSA’s vision is of a circular economy for end-of-life (EOL) tyres that contribute to a sustainable society.
It works all along the tyre supply chain to minimise waste and increase value for government, industry, businesses and consumers, by:
- Accrediting and monitoring compliance of TPSS participants – now 1,700 and counting, including tyre manufacturers, retailers, collectors, and recyclers who are committed to sustainable practices.
- Working with levy contributors to invest in market development initiatives – over $9 million invested to date, including:
- research and development.
- commercialisation of new productive uses for EOL tyres driving the transformation of a waste product into a useful commodity, creating new industries and jobs while reducing the environmental harm caused by the illegal dumping of old tyres.
- Providing a range of ESG tools and services for use by government, industry, R&D and consumers, including:
- Foreign End Market Verification (FEMV) platform – the only global platform that verifies Australian-generated end-of-life tyres are not causing environmental or social harm at their final destination.
- Sustainable Outcomes Indicator star rating which drives and promotes best practice operations and the development and use of tyre-derived materials and products in the Australian market.
Media contact for TSA:
Sandra Scalise, Tyre Stewardship Australia, Director of Strategic Marketing Communications
Email: sandra.scalise@tyrestewardship.org.au
Phone: 0491 272 721
Resources:
NSW procurement practices inquiry information page
NSW procurement practices inquiry Tyre Stewardship Australia submission
NSW procurement practices inquiry Transcript & TSA Statement
Tyre Stewardship Australia Tyre Consumption & Recovery Fact Sheet – 2023
Tyre Stewardship Australia 2022-23 Annual Report