The ACCC has granted interim authorisation to the Gladstone Regional Council, Rockhampton Regional Council, Livingstone Shire Council, Central Highlands Regional Council and Banana Shire Council (the Councils) to enable them to commence tendering for recyclable waste processing services while the ACCC is considering the substantive authorisation application. The ACCC also issued a draft determination proposing to authorise the Councils to engage in a collective tender for the long term joint procurement and collective management of the resulting contracts until 30 January 2041.
The Councils are seeking authorisation for 19 years to engage in collective procurement of recyclable processing services, including for:
- the collection of all recyclable waste from each of the Applicants’ nominated transfer locations, which may include transfer stations and waste management facilities or another innovative alternative (some of the Applicants may not require this service);
- the transport of the recyclable waste from the nominated transfer location to the Material Recovery Facility or another innovative alternative (some of the Applicants may not require this service);
- the storage and sorting of all recyclable waste; and
- the subsequent processing, transport, marketing and sale of recyclable waste and disposal of any waste which is not recyclable waste.
On 21 October 2020 the ACCC granted authorisation to Gladstone Regional Council, Rockhampton Regional Council, Livingstone Shire Council and Central Highlands Regional Council to jointly procure the recycling services of Kriaris Transport Pty Ltd (Kriaris) until 31 December 2023 (AA1000524-1). However, the Councils (which now also includes the Banana Shire Council) are now seeking authorisation to commence a competitive procurement process for a longer period of time.
The ACCC considers that the proposed conduct is likely to result in some transaction cost savings, economies of scale, increased competition for the provision of recyclables processing services and environmental benefits. The ACCC considers the proposed conduct is likely to result in little public detriment.
The ACCC now invites submissions in relation to the draft determination by 2 March 2022, before making its final decision.
A copy of the ACCC’s draft determination is available on the ACCC’s public register at Gladstone Regional Council & Ors