A tax by any other name may kill the tire plan--and the WDO

by Jay Arthur

The Ontario Tire Stewardship plan was a time bomb waiting to go off and Boom!, did it ever explode?
The fallout from the explosion has likely killed the plan, and may have set the whole stewardship train on a whole different path.
The OTS plan was a botched job to begin with - ill conceived, contrary to the legislation, its development lacking in meaningful consultation.  Not surprisingly, it got sent back the first time it appeared. It was subsequently  rejigged (sort of) and found its way to the Waste Diversion Ontario (WDO) boardroom. Like most things that hang around long enough, it worked its way to the table and got its rubber stamp. (The oil plan would be the exception to the rule).
Everyone knew the tire plan was flawed, but there were lots of other things to worry about and the issue is not exactly sexy. Tires are not very exciting. Other than the odd spectacular fire, you don't see much in the media.
The plan was placed on the EBR website and the usual clutch of environmentalists made the appropriate noises,  pointing out that burning tires is not exactly what we are trying to do here. Some others in the industry were making noises, too. Most of their concerns were ignored by the media.
But the big guys--the major retailers and the tire manufacturers---were right on side with the tire plan, and their lobbyists kept doing what they do so well and kept the tire rolling, so to speak.
Then the media found out there was a tax involved in the OTS plan. Well, not really a tax--at least no more of a tax than the health care premium, for example.
But it was enough to give reporters a chance to hassle Ontario's Premier.
Tires may not be sexy, but taxes? Well, that's a different story. Man the barricades!
Quickly digging out their files on the old tire tax, columnists rushed to their typewriters, their outrage quickly burning the very paper they typed on.
Introduced in 1989 by the previous Liberal Government in David Peterson's day, the $5 tire tax had seen millions of dollars collected to cover a scrap tire management plan. Most

of it ended up in general provincial revenues and little went to doing what it was supposed to do--just like the 10 cents the provincial coffers have been getting for years for all those non-refillable beer containers. But I digress.)
In the end, the tire tax was killed by Bob Rae's NDP Government.
On top of the old (Liberal) tire tax hangover, Premier McGuinty's "I won't raise your taxes" election statement was now causing some discomfort in his frontal lobes.
With the introduction of the Ontario health care premium, Mr. McGuinty found he was having credibility issues whenever he opened his mouth.
So when the tire fee furor broke a few days ago, he made it very clear there would be no taxes placed on tires. It was an Ontario version of that old George Bush Snr. classic: "Read my lips".
So is that the end of the OTS plan? Maybe.
An alternative plan (with no consumer fees) has been put on the table to start the discussion. We'll see where that goes.
But if we assume that what is good for the tire goose is good for the other material ganders, what of electronics? Do we assume all visible fees are now off the table in Ontario?
If that is the case there could be some very dramatic outcomes.
I'm sure when the WDO was set up no one thought it would take so long to get these plans off the ground,. If the everyday workings of the WDO are to be financed by funds from stewardship organizations, who will pay the bills if there are no stewards' fees coming in?
I remember a couple of years ago there was concern about finances and the prospect of the WDO ceasing operations if no funds were found. Letters of credit saved the day then but one wonders how long can that continue.
With the oil plan moribund, the tire plan severely wounded, and controversy over the electronics turning into another potential time bomb, the prospects are not encouraging.
If the worse comes to the worse, the blue box plan may have no one to oversee it.
Norm Miller's new stewardship private member's bill, which seems to have support from all sides of the house, might just be the answer.

Maybe that way we could throw out the bath water and hang on to the baby.