The ACCC has released a draft determination proposing to grant authorisation to enable the Gippsland Waste and Resource Recovery Group (GWRRG) and 6 councils located in Gippsland, Victoria, to jointly tender, procure and manage residual waste services. The councils are likely to sign individual contracts with the successful tenderer/s but are also seeking authorisation to jointly manage their contracts with the supplier(s) as they may wish to engage in some joint management activities. Waste service suppliers will be able to tender to supply each council and/or groups of councils (Proposed Conduct).
The 6 councils are: Bass Coast Shire Council, Baw Baw Shire Council, East Gippsland Shire Council, Latrobe City Council, South Gippsland Shire Council and Wellington Shire Council.
Residual waste is considered to be the balance of domestic waste, which is not recyclable or organic waste.
The ACCC considers the joint tendering, procurement and management of residual waste services is likely to result in public benefits in the form of greater long term certainty for councils and potential waste service suppliers; increased competition for service contracts with more joint tender participants than would be the case if councils sought tenders on an individual basis; transaction cost savings for councils; and environmental and health benefits.
The ACCC considers that the Proposed Conduct is likely to result in limited public detriment. Councils will independently decide whether it is in their best interests to procure residual waste services through the joint tender process, or through individual negotiations with a supplier. All potential waste service suppliers will continue to have opportunities to compete to supply some or all of the participating councils.
Due to the need for long term contracts to underpin investment in potential new residual waste management solutions, the ACCC proposes to grant authorisation until 30 September 2042.
The ACCC has decided to grant interim authorisation to enable the councils to commence the tender process while the ACCC is considering the substantive application. Interim authorisation does not extend to the councils selecting or entering into contracts with waste service suppliers.
Further information about the ACCC’s interim authorisation and draft determination is available on the ACCC public register at: Gippsland Waste and Resource Recovery Group & Ors