A Government announcement this week has dashed hopes that the Taupo district will be only a temporary home for a stockpile of thousands of used tyres brought in from Hamilton.
The Taupo tyres are being stored on land west of Taupo belonging to Otutira Trustee Ltd.
That company's director is Jonathon Spencer, who is also a director of tyre-recycling company EcoVersion. The tyres are sited only 2km from the edge of Lake Taupo, raising fears of environmental disaster from fire or run-off.
EcoVersion is planning to build a large-scale tyre-processing and recycling facility in Kawerau by the end of the year.
At a tyre-industry summit being held in Auckland on Tuesday, Ministry for the Environment national operations director Mike Mendonca told attendees the Government had decided not to proceed with declaring tyres a priority product under the Waste Minimisation Act.