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Dealers again implore Govt to rescind decision

February 10, 2016 By GuyanaTimes, http://www.guyanatimesgy.com/2...to-rescind-decision/

Tyre importers and drivers continue to appeal to the Government to look into their plight as low income earners and rescind the decision to completely ban the importation of used tyres into Guyana.

The used tyres that Mustaf Mohamed sells at his auto shop

The used tyres that Mustaf Mohamed sells at his auto shop

Guyana Times spoke with a number of distressed importers and drivers on Monday, who all explained how unprepared they were to face additional “struggles” if the Government did not rescind what they described as a “one-sided” decision.
Owner of the Bulla Tyre Depot, Abdool Hamid related to this publication that he had only decided to open a business in Guyana after Prime Minister Moses Nagamootoo at a meeting in the United States of America urged Guyanese to return home and invest in order to promote growth and development.
“I came back here and started investing in my business. Now everything I built in one year is going to shut down,” Hamid said.
According to Hamid, he has observed during his one year of service to Guyana in the importing business that approximately 98 per cent of Guyanese are incapable of purchasing new tyres since they are sold at high prices. He said since the decision by Government was announced, he had not sold one of his recently imported 50 tyres.
Additionally, he explained that he had just recently paid for five containers of used tyres, which are expectedly shortly.
“What’s going to happen now to me? I’m losing sleep over this,” Hamid lamented.
The Government has justified its decision by stating that a major cause of accidents was used tyres. This, however, did not go down well with the suppliers, who reported that some used tyres are by far more durable than the low-quality new ones.
“Tyres don’t cause accidents, people do. People who overdrink and use their phones while driving are responsible for the accidents on the roadways so I don’t know what the Government is saying,” another importer, Mustaf Mohamed argued.
An enraged Mohamed, who has been in the business for over 20 years and has been importing used tyres from Holland, told Guyana Times: “I have been using the tyre on my truck for four years and six months now and I never got a blowout.”
Meanwhile, Mohamed Yusuf, 70, who has been a driver for over 50 years, explained that public transportation costs would rise if persons were forced to buy new tyres.
“The bus fare is now $140 for the route which I work, but if I’m expected to buy a new tyre which I’m sure will not be tough as the used ones so I will have to keep buying, the fare will have to raise to $300. This is going to put a strain on the poor people and the Government will have something to say,” Yusuf declared.
While the importers and drivers will be tremendously inconvenienced by the budgetary measure, housewives will also feel the “squeeze”.
Even though importers and drivers are aware that this move from the Government to ban used tyres is an affirmative one, they are petitioning for the measure to be reformed. They called for Government to at least have the Guyana National Bureau of Standards appointed to control the inspection of imported tyres to approve their condition and permanence.
The decision to ban the importation of used tyres was disclosed by Finance Minister Winston Jordan in his Budget 2016 presentation as an effort to promote a green economy and protect the environment.
Ever since the announcement had been made, the Government had come under fire from importers, drivers, and the previous Administration who had deemed the decision as one with no consideration for the affairs of middle and low income earners.

‘Used tyres are like a time bomb’ – Action Tyre boss

February 10, 2016 | By | Filed Under News 

During the presentation of this year’s $230B Budget two weeks ago, Government announced plans to ban the importation of used tyres. It also announced a tax reduction on new ones.

Ron Persaud

Ron Persaud

This revelation has seemly brought dismay amongst importers of used tyres, vulcanizing establishments and some vehicle owners.
The parliamentary opposition has also aired concerns on the issue, contending that the move by the newly elected government will put pressure on the low and middle income earners since new tyres are more expensive than used tyres.
Several environmentalists and businessmen, however, have given thumbs up to the government’s initiative which is to create a green economy.
While agreeing that the new tyres will cost more, those in support of the ban are calling on consumers to take a step back and look at the bigger picture, that is, the safety and the environmental threats that used tyres are contributing.
According to one tyre importer, Ron Persaud, owner of one of the leading tyre services in Guyana – Action Tyre, new tyres will not put a dent on the consumers’ pockets as being peddled in various sections of media..
Persaud has dedicated almost 40 years to his business and is considered one of the leading tyre specialists in Guyana.
During an interview on Monday, Persaud explained that the reduction of the duty on new tyres will pave the way for importers to increase the number of tyres being imported. It will make importers eligible for “quantity discount” meaning, the more you buy the less you pay.
Persaud continued that this will allow importers to sell at a “lower” price and with the competition expected to take place in the local market, the prices of new tyres will to go lower.
Currently, the price the most sought after tyre – that makes up 40 percent of the market – is $17,500 per unit. With the duty reduction and taking the quantity purchase into consideration, the price is expected to plummet to between $12,000 and $15,000 per tyre, Persaud said.
Disadvantages of used tyres
The major issue with used tyres being imported into Guyana, Persaud pointed out, is the lack of quality control.
He stated that given that the shelf life of a “properly stored” tyre is five years, the used tyres being imported are sometimes over five years old; some are 10, 15 and even 20 years old.
While admitting that used tyres “will always be around”, Persaud said that with only new tyres coming to Guyana – which will be required to be changed every five to seven years – Guyanese who cannot afford to buy a new tyre, can buy a used one from the local market because they will be know the life of the tyre as opposed to the unknown life of the imported used ones.
“Overseas, after these tyres are punctured, the steel inside (the tyre) becomes exposed (to moisture) and begins to rust; compromising the tyre itself.
Now after or before it is imported, it is repaired but the steel inside has already begun to rust…It is like steel (rod) in a post, after it is compromised, the post cracks. It is the same with the used tyre,” Persaud stated.
“When you have proper tyres, it also saves on the wear and tear of the car’s suspension, steering and bearings…New tyres have less rolling resistance; it improves on gas mileage.
“Why would you buy used tyres two, three (and) four times a year when you can buy brand new tyres and at the same time eliminate the health and safety concerns?”
As a provider of various services, Persaud related that the operatives of public transportation usually go after the used tyres. These operators, he stated, are not conscious of the tyres their buying.
He made reference to some minibuses that have four different types of tyres; which have different traction effect, weight and size.
This, he said, is very dangerous to the lives of people who rely on these services as a mode of transportation.
“Used tyres are a time bomb; an accident waiting to happen”
Persaud also aired his concern about the potential threats posed by the used tyres.
“(Used tyres) increase our solid waste and health concerns. A new tyre importer brings in one container of assorted tyres a month while a used tyre importer brings in two to four a month.
“Old tyres that are discarded are brought here for us to use.”

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