The Authority has approved Ontario Tire Stewardship’s (OTS) plan to return remaining Used Tires Program surplus funds to eligible stewards. The plan was developed by Grant Thornton Limited, the court appointed OTS liquidator, as a Surplus Funds Addendum to the Used Tires Program Wind-Up Plan. Review the Surplus Funds Addendum.
The addendum outlines the amount of surplus funds to be distributed to stewards, a methodology to allocate the funds, and which tire classes are eligible to share in the surplus. The addendum also outlines an approach to address the Minister of the Environment, Conservation and Parks’ direction that the surplus funds returned to stewards be used to benefit consumers.
The interim distribution amount outlined in the approved addendum ($12M) is higher than what was initially proposed ($10M). Following the submission of the addendum in mid-January 2021, OTS received the expected notice of assessment from the CRA. Based on the greater certainty of the amount owed to the CRA, as well as stakeholder feedback received during the consultation process, OTS submitted a revised addendum to the Authority that specified an increase in the interim distribution amount by $2M to a total of $12M.
It is expected that OTS will present the approved addendum to the Ontario Superior Court of Justice for approval, tentatively scheduled for April 21, 2021. Following approval by the Court, OTS will begin distributing the interim amount of surplus funds to stewards. Updates on the distribution of funds will be posted on Grant Thornton Limited’s website.
The Authority is recommending that eligible stewards receiving a share of the surplus document how funds have been used in a manner consistent with the Minister’s expectation to benefit consumers. Stewards with questions about the Minister’s direction on consumer benefits or the implementation of the approved addendum should contact the Authority at email@example.com.
In approving the addendum, the Authority assessed whether it was compliant with the requirements of the Waste Diversion Transition Act, 2016 and the Minister’s directions and consistent with the Authority’s wind-up guide.
In April 2020, OTS received direction from the Minister of the Environment, Conservation and Parks to amend its Used Tires Program Wind-Up Plan for the distribution of surplus funds to stewards. OTS submitted the proposed addendum to the Authority on January 12, 2021.
Between January 29 and February 26, 2021, the Authority consulted on the proposed addendum with stakeholders. Visit the consultation page of the Authority’s website to learn more about the consultation process and to read the consultation report summarizing the stakeholder feedback received.