2021-06-08 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                     8 JUNE 2021


2.      Application to Identified Business Activities for the 2021/22 Financial Year

Two of Council’s activities have been identified as competitive in nature that meet the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated annualised budgeted expenditure)
are:
 Business Activity               Expenditure                Reform Level
 Waste Management                $13.5 million              Significant
 Holiday Parks                   $2.2 million               Code of Competitive Conduct

Note: annualised expenditure for significant activities includes total operating expenses less depreciation less
competitive neutrality costs plus interest and loan redemption. Expenditure for code of competitive conduct activities
includes total operating expenses plus interest.

Previous Council Consideration
Council has adopted NCP reforms to the Waste Management and Holiday Parks business activities
since de-amalgamation in 2014.

Finance
The financial implications of NCP reforms primarily revolve around pricing strategies for full cost
recovery, which includes a return on investment component. In addition, there is an administrative
effort in ensuring ongoing competitive neutrality compliance (i.e. budget preparation, reporting, full
cost pricing modelling).

Risks & Opportunities
Failure to appropriately review and apply competition reforms annually is a breach of the Local
Government Act 2009, and could also potentially result in competitive neutrality complaints should
appropriate adjustments not be incorporated into business activity pricing decisions.

Consultation
External Consultation - Community & Stakeholder
Council has referenced the latest advice received from by the Department of Local Government,
Racing and Multicultural Affairs in relation to expenditure thresholds.
Internal Consultation
Nil.
Departments/Sections Consulted:

       Chief Executive Officer         Community Services                            X   Corporate Services
       Executive Officer               Director                                      X   Director
       Executive Support               Community Development                         X   Financial Services
                                       Community Facilities                              ICT
                                       Libraries & Galleries                             Procurement & Fleet
                                       Local Laws                                        Property
                                       Waste & Environmental Health                      Revenue Services

       Executive Services              Environment & Sustainable Development             Infrastructure Services
       Director                        Director                                          Director
       Community Engagement            Building & Plumbing Services                      Asset Management
       Customer Service                Development Assessment                            Buildings and Facilities
       Governance                      Economic Development                              Civil Operations
       People and Culture              Environmental Services                            Disaster Management
                                       Strategic Land Use Planning                       Infrastructure Planning,
                                                                                         Design and Delivery



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