ACCC proposes to allow collective waste management agreement between Sydney councils

The Australian Competition and Consumer Commission proposes to allow certain Sydney councils to jointly tender and contract for the provision of waste transfer, disposal and processing services to their local government areas.

The participating councils are Ashfield, Botany Bay, Burwood, Canada Bay, City of Sydney, Leichhardt, Marrickville, Randwick, Waverley and Woollahra.

The councils have developed the arrangements to stimulate investment in alternative waste technology facilities that are capable of transforming general waste into reuseable products. This will assist the councils to meet tougher waste diversion targets set by the NSW Government and minimise their costs associated with disposing waste to landfill.

"The ACCC considers that this proposal is likely to produce efficiencies that will deliver cost savings for the councils and their ratepayers and reduce environmental damage caused by landfill," ACCC chairman, Graeme Samuel said.

The ACCC is proposing to grant authorisation to the arrangements until 31 December 2027.  The eighteen year term allows the successful tenderer to recover the significant investment required to establish and operate the new facility.

Authorisation provides protection 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's draft determination will be available from the ACCC website (www.accc.gov.au/AuthorisationsRegister) and by following the links to this matter.

The ACCC invites submissions from interested parties in relation to the draft determination before making its final decision.  Parties wishing to make submissions should do so by September 30 2009.  Please refer to the website for further information about making a submission to the ACCC.