The Australian Competition and Consumer Commission has issued a draft decision proposing to authorise* a group of councils to collectively tender and contract for the provision of waste management services, ACCC Chairman, Mr Graeme Samuel, said today.
The councils in the southern region of Sydney have sought authorisation to collectively tender for contractors to receive and dispose of residual waste.
"The ACCC considers that any anti-competitive detriment that may flow from the proposed arrangements is likely to be minimal", Mr Samuel said.
"The ACCC sees benefits in allowing these councils to collectively tender with waste service providers. The ACCC considers that a coordinated approach to the councils' waste management services will result in service efficiencies which will be reflected in a lower domestic waste management charge to ratepayers.
"In addition, competition for the relevant services in the Southern Sydney region is currently limited and it is anticipated that the arrangements may provide an incentive for new providers to compete to supply these services to the participating councils".
The ACCC will consult on its draft decision before making a final decision. Parties wishing to make a submission to the ACCC on this issue should contact the ACCC for further details.
The councils covered by the draft decision are: Botany City Council, Canterbury City Council, Hurstville City Council, Kogarah Council, Marrickville Council, Randwick City Council, Rockdale City Council, Sutherland Shire Council, Waverley Council and Woollahra Council. The City of Sydney Council may choose to be involved in the proposed arrangements at a later date.