Thursday, 1 June 2017
Following the change in the REDISA funding model, based on the implementation of a Tyre Levy collected by SARS effective 1 February 2017, REDISA today confirms that it has ceased all collections with immediate effect.
“We have not been allocated any funds post 1 February, and as a result of not having received any funding, and until, and if, government funding has been received, REDISA has no choice but, for the time being, to cease tyre collections,” says CEO of REDISA, Hermann Erdmann.
What this entails is that:
- REDISA will no longer collect waste tyres from registered collection points, including micro-collectors;
- REDISA depots will remain open but will not be accepting any deliveries; and
- Deliveries to processors will continue as scheduled until further notice.
“This is not where we wanted to be,” continues Erdmann. “We informed Government in February 2016 that should funding be removed from the industry, wind down would be necessary. This financial view was audited by PWC on instruction from Government.”
“Our understanding from Government communications was that this was just a change in funding model but that the industry would be continue to be funded. REDISA is taking every step to secure the funding necessary to reinstate its collections. To this end we have notified the Department of Environmental Affairs of the environmental and business ramifications of ceasing collections. In the Minister of Finance’s Budget Review for 2017, two hundred and ten million rand was allocated to the Waste Bureau for REDISA/Waste Bureau and we are engaging with the Department to secure the allocation which would allow REDISA to resume collections,” adds Erdmann.
He concludes by saying, “We are confident that we will come to an amicable settlement with Government in terms of a way forward. Our focus is on reaching an agreement that is in the best interest of all parties involved, this includes preserving the jobs and the network created through the REDISA Plan.”
REDISA is currently in discussion with Government stakeholders and has filed papers in court with regards to its position.