The Australian Competition and Consumer Commission has granted authorisation for Metropolitan Melbourne Waste Management Group and eight metropolitan Melbourne councils to jointly tender and enter into contracts for the supply of organic waste processing services.
The councils are Bayside City Council, Cardinia Shire Council, Casey City Council, Frankston City Council, Glen Eira City Council, Greater Dandenong City Council, Kingston City Council and Monash City Council.
“Combing the tender process is likely to reduce transaction costs and result in efficiency savings compared to each council conducting its own tender,” said ACCC Deputy Chair, Dr Michael Schaper.
“The ACCC also considered that there may be environmental benefits from more efficient organic waste processing and a reduction in the amount of organic waste being placed in landfill.”
The ACCC has authorised the arrangement for 18 years, comprising a three year period to complete the tender process and construct new processing facilities, and a 15 year operating term.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Further information about the application for authorisation, including a copy of the ACCC’s determination and public submissions, is available at www.accc.gov.au/AuthorisationsRegister.