ACCC grants interim approval for joint green waste tender

The Australian Competition and Consumer Commission has granted interim authorisation to allow the Central Queensland Local Government Association to run a joint tender process on behalf of the Banana Shire Council, Central Highlands Regional Council, Gladstone Regional Council, Isaac Regional Council and the Rockhampton Regional Council to provide green waste mulching services in their council regions.

This will allow the councils to prepare tender documentation, invite tenders and evaluate any tenders received from interested parties. This will be beneficial to the councils as the current green mulching contract has been extended once and is nearing conclusion.

Interim authorisation does not extend to the councils signing contracts with the successful tenderer.

The ACCC has previously considered applications for authorisation of similar arrangements from these Central Queensland councils and also groups of Sydney councils.

The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation.

The ACCC will now proceed to prepare its draft determination. Submissions on the substantive application are invited by 10 September and can be sent to adjudication@accc.gov.au.

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.