2016-02-02 P&O Committee - Item 7 - Attachment 1 - Waste Management PBA Draft Report

4. Business Model Assessment
4.1     Community Impact Assessment of Business Models
Traditionally, PBAs have assessed the impacts of moving from the current business model
adopted by Council to the adoption of the FCP or CBU models (for financially significant business
activities).
However, when PBAs were originally undertaken following the introduction of NCP reform in the
late 1990s, the current business model adopted by Council generally featured no application of
competition reforms.

Given that Council’s waste management business is reasonably advanced in the application of
competition reforms, the traditional assessment method is not appropriate in determining net
community impacts. As such, this community impact assessment considers the most appropriate
business model moving forward, after taking into account specific regional factors and implications
for Council at the local level.

It is evident from the analysis contained in the next few pages that most of the differences between
the two business models under consideration relate to the extent of managerial autonomy from
Council, reporting processes and the level of commercial orientation in business operations. As
such, most of the impacts cannot be quantified and are instead qualitatively assessed.

The following impact areas are considered in the impact assessment:
 Financial position of the business;
 Council budget;
 Market;
 Staff;
 Consumers;
 Regional development and stability;
 Social welfare and equity; and
 Environment.




Waste Management Public Benefit Assessment                                                  Page 14