The Australian Competition and Consumer Commission proposes to allow Hunter Resource Recovery and its member councils to collectively tender and contract for recycling services.

 

Hunter Resource Recovery is a joint venture of the following Hunter region local councils: Cessnock City Council, Lake Macquarie City Council, Maitland City Council and Singleton Council.

 

“The ACCC considers that these arrangements will result in significant transaction cost savings and operational efficiencies,” ACCC chairman Rod Sims said.

 

“The ACCC is satisfied that the voluntary nature of the arrangements, the limited composition of the collective tendering group and the limited scope of the tender will mean that any potential detriment is minimal.”

 

The ACCC is proposing to authorise the arrangements for 12 years. This will allow time for the successful tenderer to recoup the significant capital investment required.

 

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.

 

More information about the application for authorisation, including a copy of the ACCC's draft determination, will be available on the ACCC website at: http://www.accc.gov.au/content/index.phtml/itemId/1023902.