Thousands of old tyres could be turned into hundreds of new roads if Australia's voluntary recycling scheme is made mandatory, an inquiry has been told.
But failing to reform the existing scheme would leave local councils with huge clean-up bills and shrinking landfill sites, and would ultimately push costs back on to ratepayers.
Representatives from NSW local councils issued the warnings at the fifth hearing of the parliamentary inquiry into Australia's tyre industry held in Canberra on Wednesday.
The probe is investigating the state of the tyre industry, including illegal dumping and storage, and opportunities for recycling to address public health risks.
An existing voluntary stewardship scheme, introduced in 2014, is funded by levies from tyre and auto companies and has invested $11 million in 76 projects researching the use of recycled tyres.