ACCC grants authorisation to St George Region Councils for collective waste, recycling services

The Australian Competition and Consumer Commission has issued a final determination granting authorisation* to the St George Region of Councils allowing them to jointly tender and contract for the provision of all waste and recycling collection services in their combined local government areas.

The St George Region of Councils comprises Hurstville City Council, Kogarah Municipal Council and Rockdale City Council. The ACCC has granted authorisation to the councils' collective arrangements until 30 June 2018.

The ACCC considers that the anti-competitive detriment arising from the collective arrangements is likely to be minimal, particularly given that the arrangements apply to only three out of 38 councils in the Sydney Metropolitan Area. Furthermore, the ACCC understands that another tender process will be conducted at the end of the authorisation period.

"The ACCC is satisfied that the collective arrangements are likely to generate several public benefits, including collection efficiencies and cost savings, improved service delivery and better education programs for residents in the relevant municipalities," ACCC Chairman, Mr Graeme Samuel, said today. "The ACCC considers that the collective arrangements are likely to result in a net public benefit, and consequently, the ACCC has decided to authorise the arrangements until 2018."

The ACCC also considers that the length of the authorisation period may encourage competition by making the tender attractive to a larger pool of industry participants than if authorisation were granted for a shorter period of time.

More information regarding the application and the final determination is available on the ACCC website, by following the links Public registers, Authorisations and notifications registers and Authorisations register.

Background

Authorisation provides protection from court action for conduct or arrangements that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Authorisation is granted where the ACCC is satisfied that the benefit to the public from the conduct outweighs any public detriment.