Get serious about General Tyre revival, MPs tell goverment

THE parliamentary committee on Industries, Trade and Environment has given the government two weeks to provide a detailed survey report on the revival of General Tyre East Africa (GTEA). Among issues that the committee wants addressed in the report is who will run the Arusha-based company once it has been revamped - the government, a private investor, or a joint venture between the two.
Speaking yesterday at a meeting between the committee and Ministry of Trade and Industries officials, most of the legislators said it is high time the matter of General Tyre’s future is resolved once and for all.

They criticised the neglectful way that the government has handled the issue of the once-booming company which was closed down in 2007 due to inability to compete with cheap tire imports flooding the local market.

Committee chairperson Dr Peter Kafumu told minister Charles Mwijage and his team that the report should provide a roadmap on how the new GTEA will be expected to operate.
Kafumu, who is Igunga member of parliament, noted that although the government has in the past been setting budget allocations for the company’s revival process, nothing tangible has been done.
His comments came after the ministry’s permanent secretary, Dr Adelhem Meru, told the committee that a team of experts has been formed to conduct the survey study on GTEA.

The main objective of the assignment, according to Meru, will be to assess the global tyre production industry as a whole and propose ways and means for Tanzania – through GTEA - to again become a competitive player in the industry.
“The experts shall identify main tire types and sizes in local demand and estimate current and future demand for each type,” he said.
According to the PS, the survey team includes representatives from the University of Dar es Salaam’s Bureau for Industrial Cooperation (BICO), Tanzania Industrial Research and Development (TIRDO), National Social Security Fund (NSSF), and the ministry itself. 

Committee member Julius Kalanga, the MP for Monduli on an opposition CHADEMA party ticket, questioned the inclusion of officials from NSSF and the ministry in the team, suggesting that “they have vested interests and can make proposals in their favour.”
Another member, Khatib Said Haji (Konde-CUF), urged the government to do whatever it takes to revive the General Tyre firm because the demand for tyres in the country is still very high.
Haji said there is a need to adopt new technologies in the revival plan because a lot of changes have taken place since the factory was closed almost ten years ago.

Regarding private investors, he warned the government to be very careful in choosing one if need be, since past records have shown that not all ‘investors’ can produce the expected results.
“Let the government reflect on the investment at Urafiki Textiles which, despite having all the necessary raw materials locally available, is on its knees,” Haji said.
Special Seats legislator Faida Bakar (CCM) proposed that a serious analysis on the availability of rubber in the country should be done hand-in-hand with a drive to encourage farmers start rubber plantations.
Responding to the committee’s observations, minister Mwijage said the government is keen on drawing lessons from past investments that will help to chart the way in implementing the revival plan for GTEA