The Australian Competition and Consumer Commission proposes to grant authorisation* to a group of south Sydney councils** to collectively tender and contract for the provision of waste management services for waste collected during 'Council Clean Ups'.
Without authorisation, agreements between councils as to who they contract with and the price of those contracts, may raise concerns under the Trade Practices Act 1974.
The councils have sought authorisation to seek and receive expressions of interest, to call for tenders, to make recommendations to councils as to the most suitable service provider, and for councils to enter into similar but separate contracts with the selected service provider/s.
"The ACCC considers that any anti-competitive detriment that may flow from the proposed arrangements is likely to be minimal", ACCC Chairman, Mr Graeme Samuel, said.
"The ACCC sees benefit 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 rate payers.
"In addition, competition for the relevant services in the southern Sydney region is currently limited and it is anticipated that the proposed 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.