ACCC proposes to allow food, garden waste management proposal

The Australian Competition and Consumer Commission today issued a decision proposing to grant authorisation* to the Inner Sydney Waste Management Group of Councils to jointly tender and contract for services to transfer, process and dispose of food and garden organic waste and to market and sell any end products in the relevant local government areas. 

The ISWMG comprises six local councils: Council of the Municipality of Ashfield, Auburn Council, Burwood Council, City of Canada Bay Council, Leichhardt Municipal Council and Council of the Municipality of Strathfield.

The ACCC proposes to authorise the proposed conduct for a tender period of 12 months and an initial contract term of 10 years.  The tender process is expected to begin in January 2009 if authorisation is granted.

The ISWMG has developed the proposed waste management arrangements in response to a number of factors including the New South Wales State Government's Waste Avoidance and Resource Recovery targets, increasing landfill disposal fees and a shortage of land available for new landfills in the inner Sydney region.

"The ACCC considers that the proposed arrangements have the potential to provide efficiencies in the provision of waste management services in the inner Sydney region," ACCC Chairman, Mr Graeme Samuel, said today.

The ACCC seeks submissions from interested parties in relation to its draft determination by Thursday 16 October 2008.  The ACCC's draft determination will be available on the ACCC website. 

Background

*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.  The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.

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