South African recycling plan on hold, again
Plans to implement a tyre recycling plan in South Africa have once again hit a sizable pothole. Only weeks after a challenge to the Recycling and Economic Development Initiative of South Africa (REDISA) scheme was dismissed by the Gauteng North High Court, an application submitted by South Africa’s Retail Motor Industry Organisation (RMI) has put it once again on hold pending further review.
Commenting on this latest complication, REDISA CEO Hermann Erdmann said “The RMI action has now created chaos among tyre producers, distributors and retailers, with uncertainty regarding the waste tyre management levy for the period prior to and after November 20 2012. This is bound to create accounting and liability problems throughout the distribution chain.”
The RMI, for its part, stated in a 21 November press release that it is “extremely pleased with the outcome of the court application.” Organisation CEO Jeff Osborne added that the judgment means nobody within the industry will be required to comply with the REDISA scheme until another review is carried out. “This hearing will in all likelihood only take place later next year as we are still awaiting the records and reasons for the minister’s decision to approve the REDISA plan.”
Redisa has already faced several obstacles; the plan was withdrawn at the start of 2012 and reinstated in April. It then faced a legal challenge from the SA Tyre Recycling Process Company (SATRP) and Bridgestone South Africa. The RMI even accused Hermann Erdmann of stealing the concept for REDISA from the organisation.
REDISA says it does not expect the hold against the scheme to be a long one. “It is a most unfortunate mess that the RMI has created,” read a REDISA press release. “We very much regret that the industry has to deal with this, but it is not of our making.”
Related news:
Comments