The executive director of the Ontario Tire Stewardship (OTS) program, which goes into effect Sept. 1 and aims to divert 90 per cent of scrap on-road tires and collect and recycle 50 per cent of all scrap off-road tires within five years, says the program will have little effect on prices.

The program is still being criticized, however, for adding costs at a time when Ontarians are feeling the pinch of the recession.

Andrew Horseman said in an interview the program seeks to "improve the system of directing used tires away from landfills, burning and illegal dumping."

He said tire distributors that fall under the "steward" category, will be required pay the OTS a disposal fee of $5.84 each for an average tire used by cars, pickups and SUVs.

Distributors are considered stewards if they are either a brand owner or a direct importer of foreignmade tires.

There are concerns that the only way such a charge can be recouped is by incorporating it into the cost of tires to the end consumer.

On the other hand, Mr. Horseman said the OTS program eliminates the cost to "collectors" of hauling tires away, since the OTS will assume the cost.

Collectors include tire retailers and large tire consumers, such as municipal public works departments.

The program, as outlined, does present a predicament for businesses like Orangeville-based Fred's Tire, which is both a retailer and a wholesaler and, due to the latter, falls into the steward classification.

Manager David Denning said he was in contact with Mr. Horseman and felt "it was good to talk to the guy, but it really doesn't change my opinion on the matter."

Mr. Denning had previously pointed out that Fred's Tire has traditionally charged a disposal fee of just $2 for an average used tire. He said that, when the OTS program starts Sept. 1, he will have to pay almost three times that amount and have no choice but to pass the extra cost on to his retail consumers.

While he has maintained all along that the program is not without its favourable points, he also said the "timing's wrong and the money's wrong."

Mr. Denning also pointed to a situation where a person he knew was stockpiling used tires in a field, assuming that, as a collector, the program would pay him the proposed "handling allowance" of 88 cents for each average tire and $3.05 for a large one used by, for example, a transport truck.

He said Mr. Horseman assured him that the individual's contention that the OTS would actually pay to haul the tires away would be nullified by the considerable clean-up fee he would face.

There had also been concerns that the OTS program would use its own selected used tire haulers and, therefore, take the competitive component out of the hauling process.

Mr. Horseman said the stewards and collectors can continue to have a relationship with their hauler of choice, provided the used tires are being sent to a registered recycling facility. "The only difference," he said, "is that the hauler will be paid by the OTS, not the (client)."

He said the program will generate up to $24 million, in its first year, to advance the tire recycling business and promote another green industry in the province.

Mr. Denning remains unconvinced. "Down the road," he said, the program "will be the common norm.

"For now, though, it's just not the right time to be doing this."