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Mandatory procurement policies can unlock investment and jobs: Tyre Stewardship Australia

Mandatory procurement policies can unlock investment and jobs: Tyre Stewardship Australia

Speaking at the New South Wales Parliamentary Inquiry into Procurement Practices of Government Agencies last week, 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,” she said.

Goodman said that 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,” she said.

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.”

Goodman said the same can be achieved in New South Wales 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 just the lowest price, coupled with strong product stewardship regulation.

For more information, visit: www.tyrestewardship.org.au

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