The Australian Competition and Consumer Commission has issued a draft determination proposing to grant authorisation for the Cities of Wanneroo, Joondalup and Swan to jointly tender and enter into contracts for the supply of services to process dry commingled recyclables collected by them through their yellow lid kerbside collection service.
“The ACCC considers that having the council’s combine to tender for these services is likely to be more efficient than each council running their own separate tender,” ACCC Commissioner Jill Walker said.
“The proposed conduct may also result in environmental benefits as the combined volumes may encourage investment in the upgrade of an existing, or establishment of a new facility, that will utilise fewer resources when processing the recyclables collected.”
The ACCC is proposing to grant authorisation for 6 years.
The ACCC is also proposing to grant interim authorisation to the councils to jointly evaluate tenders and to negotiate standard agreement terms, but not to enter into contracts. The interim authorisation commences immediately and will remain in place until the date that the ACCC’s final determination comes into effect or is revoked.
The ACCC is seeking submissions from interested parties in relation to its draft determination, before making a final decision.
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.