ACCC proposes to allow councils' collective waste manangement plan

The Australian Competition and Consumer Commission has proposed to allow four southern Sydney councils to jointly tender and contract for the provision of residual waste transfer, processing and disposal services in their local government areas.

The participating councils are Hurstville, Kogarah, Rockdale and Sutherland.

The councils have developed the arrangements as part of a strategy to meet the NSW Government’s waste avoidance targets and address the increasing costs of sending waste to landfill. They hope to have a new alternative waste technology facility built in their area, which would divert waste from landfill and recover resources for use as new products.

Without authorisation from the ACCC, the councils would risk breaching the Trade Practices Act 1974 by entering into agreements with competitors that might reduce competition in the relevant market.

"The ACCC considers the proposed arrangements are likely to result in efficiencies that will reduce alternative waste management costs for the councils and their ratepayers," ACCC chairman, Graeme Samuel, said today.

"By diverting waste from landfill, the arrangements are also likely to provide environmental benefits to the greater Sydney region and stimulate competition in the local waste management services market."

Authorisation provides protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Act. 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 16 October 2009. Please refer to the website for further information about making a submission to the ACCC.