Hunter Resource Recovery - recycling collection and processing contract with Solo

On 26 April 2024, Hunter Resource Recovery, on behalf of itself and its Member Councils (Cessnock City Council, Lake Macquarie City Council, Maitland City Council and Singleton Shire Council), lodged a new application with the ACCC to enter and give effect to a new, short-term contract with Solo Resource Recovery (Solo), with respect to collection, processing and distribution of recyclables on a unified basis for its Member Councils.

Hunter Resource Recovery is seeking to:

a)     engage in all necessary discussions between Hunter Resource Recovery and its Member Councils in order to enter into the proposed contract with Solo on the Solo Terms (see below);

b)     do all things necessary to give effect to any contracting between Hunter Resource Recovery and its Member Councils and Solo with respect to the proposed conduct; and

c)     enter into and manage a contract with Solo on the Solo Terms (see below) for a period of 18 months and one extension of up to a further 18 months.

The Solo terms will include:

a)     Date of commencement of the agreement is 1 July 2025, upon the expiry of the current agreement.

b)     Term of the agreement is 18 months, with an option to renew for a further period of 18 months. The maximum contract length would be 3 years (or 36 months).

c)     Services to be provided are the same as covered by the current contract between Hunter Resource Recovery and Solo, being kerbside collection, processing and distribution of recyclate services, as covered by the ACCC’s existing authorisation A91289 and covered by new authorisation AA1000647 and AA1000648).

d)     The commercial terms are still to be negotiated between the parties.

Authorisation is sought for 3 years.

Hunter Resource Recovery also sought interim authorisation with respect to this application above.

On 31 July 2024, the ACCC issued a draft determination proposing to grant authorisation to Hunter Resource Recovery to enable Hunter Resource Recovery and its member Councils to jointly enter and give effect to a contract for recyclate collection, processing and distribution services with Solo Resource Recovery, in each Member Council’s Local Government Area for up to 3 years.

The ACCC has also granted interim authorisation to enable the Applicants to jointly negotiate and potentially make an 18 month-3 year contract for recyclate collection, processing and distribution services with Solo Resource Recovery. Interim authorisation does not extend to the Applicants giving effect to any such contract while the ACCC completes its assessment of the substantive application.

The ACCC invites the views of interested parties on the draft determination. Submissions are requested by 21 August 2024.

If you wish to make a submission in relation to this matter, please lodge it via this web form.

An indicative timetable is set out below for your information.