Jim Fairweather, CEO of Tyrecycle, outlined the key issues raised in the recent federal inquiry into end-of-life tyres, conducted by the House of Representatives Standing Committee on Industry, Innovation and Science. Although the main plank of the inquiry’s brief was to examine the commercial and economic aspects of tyre recycling, Fairweather emphasised that the sector’s successes are not overshadowed by areas where the system is failing.
Any regulatory adjustments, he argued, should focus on market gaps rather than creating additional burdens for a functioning recycling sector. Tyrecycle supports mandatory, market-based regulation and increased government procurement. Fairweather added that Tyrecycle supports stewardship that directly addresses undesirable outcomes such as dumping, labelling it “unacceptable” for any tyre to be dumped.
While the recovery rate for passenger and truck tyres sits at an impressive 96 per cent, the recovery of off-the-road tyres (OTR) remains poor, at two per cent. These OTRs, which are predominantly used in mining and agricultural operations, represent around 29 per cent of the total tyre market in Australia.
By concentrating on areas that are underperforming, the inquiry can ensure that efforts are targeted and that national recycling targets of above 80 per cent are achievable.
“We want to make sure that the outcomes of the inquiry focus on where the problems are,” said Fairweather. “There are regional disparities that need considering. Western Australia generates 60,000 tonnes out of 155,000 tonnes of OTRs nationally. Queensland and New South Wales together generate another 75,000 tonnes.”
He stressed the importance of focusing on high-volume areas to address the core problem rather than diverting attention to sectors that already perform well. He also cautioned that a complete system overhaul could raise consumer prices for little overall benefit, potentially fuelling inflation, whereas focused refinement that targets real challenges can deliver outcomes more cost effectively.
Fairweather explained that a large part of the challenge lies in the economic and commercial structure of the recycling sector. Passenger and truck tyres have a well-functioning system supported by state-based regulations and established recycling infrastructure, but OTRs require a more targeted approach. He emphasised that policy must differentiate between well-functioning parts of the market and those where intervention is truly needed. He reiterated that recyclers such as Tyrecycle are invested and ready to process every tyre in Australia, provided the correct system was in place to support.
Challenges in creating end markets
A central theme in Fairweather’s discussion was the shortage of end markets for recycled tyre materials. There is a critical need for viable domestic markets to absorb the recycled products. Tyrecycle is currently collecting about 90,000 tyres a day. This is why Fairweather has warned against over-reliance on mandatory or extended producer responsibility schemes. He explained that Tyrecycle does not oppose Product Stewardship on an ideological basis, but rather on an economic basis and that such schemes do not inherently create markets for recycled products. Australia requires market-based solutions that allow recyclers to innovate and find commercially viable applications for end-of-life tyres.
“Just because there are EPR schemes for various waste streams, this does not mean we have markets for these products,” he said. “This issue is particularly acute given the scale of the material being handled. Tyre-derived fuel (TDF) provides an environmentally controlled outlet for much of this material, and we need more of these recycled products to be used domestically rather than exported.”
Fairweather also discussed the potential of other applications, including construction materials and alternative products, but noted that the domestic market remains limited. The lack of sufficient demand restricts the ability to absorb all the material collected, meaning that some recycled products must still be exported. Fairweather also argued that developing sustainable and commercially viable end markets is essential to achieving a truly circular economy.
He also said there was a misconception that having a scheme alone solves all challenges. He referenced other sectors, such as electronic waste, where collection rates have improved but market demand for the recovered material remains insufficient. The same principle applies to tyres – collecting material is only the first step; without a market, the waste stream cannot be effectively closed.
Fairweather supports a mandatory scheme that require all tyre manufacturers to contribute to the cost of managing the waste stream their products generate.
He clarified that his preference is for a market-based approach rather than a strict EPR scheme. He emphasised that regulatory frameworks and mandatory schemes can address collection and compliance but cannot compensate for the lack of commercial demand for recycled products.
Illegal dumping of tyres is of great concern to the entire industry. Some EPR schemes claim that illegal dumping by rogue collectors can be fixed by funnelling large amounts of money through a central authority and reimbursing recyclers afterward, but this approach risks creating new problems such as inflation and reduced competition. A better alternative is to rigorously enforce accreditation and monitoring systems that ensure recyclers meet proper standards without disrupting the direct commercial relationship between customers and suppliers.
Regulatory framework and enforcement
Effective regulation has been a cornerstone of high recovery rates for passenger and truck tyres, according to Fairweather. State-based regulations prevent illegal dumping and stockpiling, while export regulations govern how materials are utilised offshore. No more regulation is needed, what Australia has already should suffice.
“If we have those levels or those elements of regulation properly enforced, then many of these problems go away,” he said
Fairweather noted that where regulation is weak or enforcement inconsistent, problems arise. For example, in some regions, export regulations are not strictly applied, allowing non-compliant operators to profit at the expense of the legitimate recycling sector. These “rogue operators” undercut gate fees and compromise the commercial viability of compliant recyclers, creating financial pressure and reducing confidence to invest in new technologies or products.
“High-quality enforcement is not just about compliance, but also about market integrity. When operators adhere to regulations and pay appropriate fees, the recycling sector can function competitively, innovate, and explore new products,” he said. “The Productivity Commission’s findings found that competition benefits consumers through lower prices, higher quality, and greater choice. In the absence of competition, we get the problem of a reduction of output, rising prices, lower product quality and at times, lower choice.”
A combination of the aforementioned regulatory enforcement and market-based incentives is key to addressing structural problems in the sector. High collection rates alone are insufficient if end markets cannot absorb the material or if unscrupulous operators undermine the system.
Support for market-based schemes
“There’s a misconception that somehow it just… oh, we’ve got a scheme, so everything’s fine. Well, it’s not and this inquiry will hopefully address these shortfalls,” he said.
Fairweather also placed the tyre issue within the broader context of end-of-life vehicles in Australia. Approximately 850,000 motor vehicles reach the end of life each year, generating 1.36 million tons of waste, of which 70 per cent is recycled. The volume of tyres within this waste highlights the scale of the challenge. He argued that market development, enforcement, and mandatory market-based schemes must work together to manage this stream effectively.
Finally, Fairweather underlined the company’s commitment to the sector and to improving outcomes. He stated that Tyrecycle supports initiatives that strengthen compliance, expand domestic consumption of recycled products, and address market failures in off-the-road tyres.
“We just want to see the right regulation,” he said.
He concluded that only through a combination of effective regulation, investment in infrastructure, and development of end markets can Australia fully realise a circular economy for tyres. Without these measures, even the best-intentioned schemes cannot deliver sustainable outcomes.