Dealers demand explanation over partial ban on used tyres

… proposes solution for 2018

Used tyre dealers are calling on the Government to explain why there is only a partial ban on the product and has also suggested an alternative approach to guarantee safety on the roadways and a green economy.

As resistance continues against several Government policies, the attorney representing the Guyana Used Tyres Association (GUTA) observed that it is an unfair move for the Administration to ban the importation of just some categories of used tyres.
“If your concern is about used tyres, why only choose minibuses, SUVs, small pickups and cars. It seems to be an unfair situation. The approach is not very clear,” Jerome Khan argued during a press conference at his office on Brickdam.
GUTA consists of over 30 businesses and its mandate is to advocate against the ban on the importation of used tyres which took effect in April 2017.
The organisation believes that instead of imposing a partial ban, Government should establish quality control standards for tyre importation as there are inferior qualities of new tyres. “In the absence of any kind of established criteria, it would be difficult for Government to justify the wholesale banning of certain categories of tyres… In the absence of any definitive type of standard such as thread wear or thread tyre depth, it would be very difficult for Government to justify that used tyres coming in this country ought not to come,” Khan explained. Therefore, he recommended that Government introduce the requirements of thread wear or thread depth.
Khan made it clear that the organisation is not baselessly opposing the restriction nor does it want a confrontation with Government.
“We don’t want a confrontation with Government. The Association is here to raise the awareness and concerns of its members. I’m sure the Government would be concerned if 5000 persons hit the breadline. These people spent so much time, energy and money in developing this industry…(and) they are simply asking for a reengagement (with Government). We believe Government is sensible enough to know what’s going on in the economy and try to work with this particular Association,” he stated.
When prompted, Khan said the Association has not contemplated legal actions as their hope is to meet with Finance Minister Winston Jordan and convince him to make favourable amendments in the National Budget 2018.

Impacts
Furthermore, the lawyer reiterated the concerns previously ventilated by stakeholders in the industry regarding the financial implications and the social impacts of such a ban.
“Starting with their households, if they don’t earn income, they can’t support their families,” he posited.
He further explained that businesses will have to find additional investment capital, source, connect and build relationships with new suppliers, rebrand, remarket – all activities which come with heavy expenses.
Not only are businesses already experiencing a decline in sales because of their inability to import new tyres but vehicle users are also feeling the squeeze.
A minibus driver, Mohamed Yusuf told reporters that it was already a challenge for him to purchase used tyres at $3000. He fears the day when new tyres alone will flood the market as he will be unable to make the purchase without cutting expenses from other critical areas of his budget.
Moreover, Khan explained that while some dealers may still have used tyres in stock, business would decline because of the unavailability of different types of tyres.
He urged Government to meet with the industry players in the interest of economic prosperity and social cohesion.
“This country cannot be in the system of banning things. We’ve gone through a past where items were banned all the time. We don’t wanna go back and banning items. We wanna go and work with communities including the business community and see where you can find solutions. In the absence of that kind of dialogue, it leads to conflict… you can’t operate like a bull in the china shop… we’re asking to meet and talk,” he stated.
GUTA has already staged several picketing exercises to get the Government to reverse the ban but to no avail. They have even submitted a petition with over 100 signatures.
According to information supplied by the dealers, used tyres cost between $3000 and $5000, whereas new ones would be more than two times that price.