The quality of used tyres imported into Guyana has improved over the years and while a ban is being considered, the Ministry of Commerce will be meeting importers of new tyres shortly to determine whether these could be retailed at a cheaper price.
This disclosure was made by Commerce Minister Manniram Prashad at a media briefing held yesterday at the ministry after a meeting with distributers of used tyres.
He said Dr Chatterpaul Ramcharran of the Guyana National Bureau of Standards (GNBS) was also at the meeting which was necessary to determine whether the minibus fare increase being called for by the General Minibus Association (GMA) was justifiable. He said some members of the association are calling for a ban on used tyres since they believe used tyres currently sold on the market are sub-standard. But Prashad said this could not occur without consensus, noting that the excise tax on used tyres stands at 5% while on new tyres, it stands at 30%. He said one request brought to the fore recently by minibus operators was to have the excise tax on new tyres reduced to 5% while imposing a ban on used tyres.
Prashad told the media that checks with the GNBS have indicated that the quality of used tyres imported into Guyana is determined by tests conducted by inspectors there. Prashad said the views of the GMA on the quality of used tyres are not shared by 90% of minibus operators, since many of them are comfortable with the cost of such tyres. He said that while the Commerce Ministry was trying its best to keep the cost of public transportation down, it was also important to ensure that safety was not compromised in the process.
According to Ramcharran, who was present at the briefing, the used-tyre industry is highly regulated whereby it is compulsory for importers of used tyres to be licensed and registered with the GNBS. He said when a shipment of used tyres arrives in the country GNBS inspectors would physically check each tyre for certain specifications and those which are found to be defective are destroyed. Surveillance exercises are carried out at storage facilities to ascertain the quality of used tyres being sold.
Ramcharran said that sometime ago used tyres arriving at various ports of entry were destroyed by the hundreds. At present this figure has been reduced to 10 to 15 being destroyed on arrival. In addition, he said that when consumers approach used-tyre distributers, they are afforded the opportunity to determine whether the tyre is good or defective. Ramcharran also stated that there are currently 36 importers of used tyres.
Prashad said used tyres usage was also being examined from a road safety point of view noting that in the past used tyres had been known to “blow out” during long distances of travel, such as journeys along the Linden-Soesdyke Highway, leading to accidents, some being fatal.
On the subject of new tyres, the minister stated that he will be carrying out consultations with importers of new tyres. He said complaints have been made by them about the sloth in the sales of new tyres, citing the popular use of used tyres. He said an agreement will be sought to have a reduction in the price of new tyres.
Prashad is also expected to meet spare-parts dealers, since, according to him, the entire issue of increased minibus fares has to be addressed in a complete manner to the benefit of the travelling public.
The minister also reiterated that commuters should not pay any increased minibus fares, citing an agreement which was made with the GMA, after the price of fuel recently dropped, not to have any increases unless the price of fuel passed $1,000 per gallon. Gasoline is now just over $750 a gallon.
