The Australian Competition and Consumer Commission has granted authorisation to Clarence, Glenorchy and Hobart city councils to tender jointly for services to process recyclables.

The ACCC has authorised the arrangement for nine years and six months to cover the tender period and the maximum possible contract term of nine years. The councils plan to enter into individual contracts with common terms.

“Combining the councils’ tendering processes is likely to lead to efficiency savings,” ACCC Commissioner Dr Jill Walker said.

“Combining the tonnage volumes of each of the councils may also increase competition for the tender, as the greater volume may be more attractive to recycling processors.”

Authorisation provides statutory protection 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 an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Further information, including a copy of the ACCC's determination and the applicants’ submissions, is available on the public register.