ACCC proposes to let Melbourne councils collectively tender for bus shelters
The Australian Competition and Consumer Commission proposes to grant authorisation* to allow some Melbourne councils to collectively tender for the installation and maintenance of bus shelters on Melbourne Metropolitan bus routes.
The tender process will be conducted by the Director of Public Transport. Councils wishing to participate in the collective tender process will do so by entering into a memorandum of understanding with the director. Currently 11 councils have agreed to participate in the tender process. Other councils may also elect to participate as their existing contracts with bus shelter providers expire.
"The ACCC considers that any anti-competitive detriment that may flow from the proposed arrangements is likely to be small", ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC sees benefit in the supply and maintenance of bus shelters to a number of councils being negotiated and provided through a single process. This may enable the successful tenderer to provide these services at a lower cost than would otherwise be the case. Similarly, the arrangements are also likely to result in transaction cost savings for councils in negotiating with prospective street furniture suppliers. These cost savings are likely to be reflected in lower rates and improved quality of services for ratepayers".
The ACCC is currently seeking submissions on its draft determination. Submissions can be sent to: The General Manager, Adjudication Branch, Australian Competition and Consumer Commission, PO Box 1199, Dickson, ACT 2602.
Alternatively, submissions may be faxed to (02) 6243 1211 or emailed to adjudication@accc.gov.au.
*The ACCC has the function, through the authorisation process of adjudicating on certain anti-competitive practices that would otherwise breach the Trade Practices Act 1974. Authorisation provides immunity from court action, and is granted where the ACCC is satisfied that the practice delivers a net public benefit.
