South African waste management service Redisa has ceased all tyre collections following the change in its funding model, based on the implementation of a tyre levy collected by SARS effective 1 February 2017.
Tense Period for Redisa
We have not been allocated any funds post 1 February 217, 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.
“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 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.
“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.”
In the meantime Redisa will stop collecting tyres, though its depots will remain open but not receive tyres, however, deliveries to processors will continue for so long as stock is available.