Tyre Wholesaler’s Group Annual Lunch

One year after becoming chairman of the NTDA’s Tyre Wholesaler Group (TWG), Peter Gaster addressed his second TWG annual lunch. In his speech the managing director of Kings Road Tyres conveyed the TWG’s support for three millimetre tread depth, shared his thoughts on how businesses can protect their ever-decreasing margins, while warning members of the continuing and expensive reality of health and safety scrutiny. One of the industry’s best-known figures, Sir Tom Farmer, also addressed the collection of members and invited guests.

According to TWG chairman, Peter Gaster, profits margins are under continued attack: “In reality we all face many of the same problems and as we know tyre prices are on the way up, I think we will all have to carefully consider the need to remain competitive and take into account our rising costs, as I don’t think that wholesale margins can absorb these increases,” he said adding, “as wholesalers we need to focus on maintaining service, as essentially that is what we are, service providers. But rising costs are putting us under pressure to maintain this level of service and keep prices down.”

In his speech, Mr Gaster went on to define one source of this continuing pressure, the requirements of the health and safety executive. “I am not complaining about the need for proper and safe working conditions, and I understand that this needs to be monitored, but it appears to me that the tyre industry is under scrutiny and I can only repeat what I have said before – if you have not had a visit, you probably will,” he explained.

Wholesalers are not tax collectors

For Mr Gaster, the devil is in the detail: “I don’t hide from the fact that I am personally concerned about the increasing bureaucracy, red tape and legislation that this government continues to burden the industry with.” Warning that the powers that be were responsible for the current situation, the TWG chairman told of his frustration at being treated as an unpaid tax collector: “If anyone from the government should hear or read this speech, I will be very happy to explain in detail about my frustrations. I recently received a letter from our local MP who wanted to know how all the advantages of ‘government working with business’ was helping our company – I am still working on my response.”

However there was definitely a positive side to the story: “The good news is that the NTDA has been working closely with the health and safety executive and has recently agreed upon an advisory package regarding the manual handling of tyres in the workplace. I think it is fair to say that if the NTDA had not been consulted, the resulting regulations would have been extremely difficult to apply.”

When is an E-marked tyre not a European tyre?

The love/hate relationship between wholesalers and manufacturers was also briefly touched on. “I received a letter, as many of us did, from Goodyear/Dunlop regarding their right to protect their trademark on the one hand, and warnings about compounds etc on the other. In seeking clarification of these intentions I would ask one question. If a tyre is E-marked and is homologated for the EEC, wherever it is made, is that tyre not legal and fit for use in the UK?” From Sir Tom Farmer’s point of view this kind of banter comes with the territory. “They are just doing their job,” he said, adding that “its all part of the fun.”

Mr Gaster also highlighted the TWG’s “unanimous support” for the current campaign to improve awareness of three millimetre tread depth, which is being driven by Brian Smith of Continental. “We at the TWG and the NTDA are firmly behind this campaign and will do all we can to support it via out association and by choice as individual companies. Let us not forget that our parliamentarians and police forces do not ride on tyres with less than three millimetres tread depths.”

Referring to the government’s landfill directive, Mr Gaster explained that he was “delighted” to confirm that “the current thinking is the industry has taken care of the problem so far and has increased the recovery rate away from land fill up to approximately 85 per cent. Therefore the government has agreed to monitor this progress and in the meantime will not be putting forward mandatory legislation.”