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by Jay Arthur
In my last column I talked about the potential death of the scrap tire plan and what might happen to finances at the WDO office if no other plans get approved in the future. With the system dependent on administrative expenses being covered by industry fees from approved recovery programs, an ongoing supply of approved programs is going to be needed to keep the bills paid. On top of this, there is a lot of work to be done after a material is designated, and no money coming in until a recovery plan is approved. Any bumps in the road to recovery, so to speak, could prove to be big trouble. And we have seen some big bumps with both the oil plan and the tire plan. But who knew the situation was so dire? Well, one assumes the regulars knew because surely this would have come up at the WDO board meetings where all the regular attendees, observers and hangers-on would have had some notion from what was said that there might be financial troubles ahead. We don't know if there's anything in the recent minutes-- they don't seem to be available. Strictly speaking, of course, this is not the first time money troubles have been an issue. The delay in getting even the first program plan approved was causing some grief in late 2003 and it was only the offer of guarantees from the brewers and the retailers that put everyone's mind at rest. And a few days after the concern was raised, the plan was approved and we all slept better in our beds. But then again in October of last year, one board member was concerned that because of cash flow problems the board might approve programs that did not meet the standards but "were close enough". (This meeting, curiously enough, was just one month after the board approved the scrap tire plan, despite its obvious flaws.) Another board member at the October 2004 meeting wondered if an industry funding organization (IFO) could loan money to the cash-strapped WDO. In the meantime, there was a million-dollar line of credit available. So it shouldn't really have come as too much of a surprise
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