ACCC allows Sydney councils to collectively tender with waste management providers

The Australian Competition and Consumer Commission has issued a decision authorising* a group of councils to collectively tender and contract for the provision of waste management services, ACCC Chairman, Mr Graeme Samuel, said today.

A group of councils in the Southern region of Sydney have sought authorisation to collectively tender for contractors to receive and dispose of residual waste.

"The ACCC considers that any anti-competitive detriment that may flow from the proposed arrangements is likely to be minimal.

"The ACCC sees benefits in allowing these councils to collectively tender with waste service providers", Mr Samuel said. "The ACCC considers that a co-ordinated approach to the council’s waste management services will result in service efficiencies which will be reflected in a lower domestic waste management charge to ratepayers.

"In addition, competition for the relevant services in the Southern Sydney region is currently limited and it is anticipated that the arrangements may provide an incentive for new providers to compete to supply these services to the participating councils".

The councils covered by the decision are: Botany City Council, Canterbury City Council, Hurstville City Council, Kogarah Council, Marrickville Council, Randwick City Council, Rockdale City Council, Sutherland Shire Council, Waverley Council and Woollahra Council. The City of Sydney council may chose to be involved in the proposed arrangements at a later date.

*The Trade Practices Act 1974 prohibits certain forms of anti-competitive agreements, including agreements between competitors that limit their ability to deal with whom they choose or on the terms they chose (including price). Authorisation provides immunity from court action under the Act arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit flowing from the conduct outweighs any public detriment.