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

Impact Area      Impact Criteria    Impact     Benefits / Cost Description                                                        Qualitative Assessment
                                    Type
                                                                                                                     Likelihood       Consequence          Impact
                                                   manager and administrative staff, and may impact
                                                   adversely on staff morale if resources were insufficient to
                                                   cope with any increased workload (and additional
                                                   resources were not provided).
Customers        Pricing            Benefits      The adoption of user pays pricing principles will ensure that   Very High         Moderate         High Benefit
                                    Costs          all customers are treated in an equitable manner and there      n.a.              n.a.             Nil Cost
                 NET                               are no cross subsidies between customers in product
                 BENEFIT                           supply.
                 (high)
                 Customer Service   Benefits      Waste and recycling services would be provided by the           Moderate          Low              Low Benefit
                 Provision                         CBU which would be branded as such to deal with
                                                   customer service issues directly in accordance with its
                 MIXED IMPACT                      established service level performance targets.
                                    Costs         Some confusion may occur in the community regarding             Low               Low              Low Cost
                                                   whether the CBU is focussed on maximising profits or
                                                   meeting social and environmental objectives

Regional         Supporting         Benefits      Full cost pricing practices provides the funds necessary to     Very High         Low              Medium Benefit
Development      Regional                          ensure appropriate ongoing investment in waste
and Economic     Development                       infrastructure to continue to support ongoing regional
Stability                                          demand for waste services, providing business and
                 NET                               industry with the resources required to continue ongoing
                 BENEFIT                           regional development.
                 (low)              Costs         Additional costs would be incurred under a CBU model due        Moderate          Low              Low Cost
                                                   to additional compliance related responsibilities for the
                                                   business manager and administrative staff.
                 Sustainable        Benefits      Appropriate price signals would be sent to businesses           High              Low              Medium Benefit
                 Investment                        looking to invest in the region.
                                    Costs         Additional costs would be incurred under a CBU model due        Moderate          Low              Low Cost
                 NET                               to additional compliance related responsibilities for the
                 BENEFIT                           business manager and administrative staff.
                 (low)

Social Welfare   Equity  Between    Benefits      The adoption of full cost pricing principles on a per product   Very High         Low              Medium Benefit
and Equity       Customers          Costs          basis will ensure that individual products are appropriately    n.a.              n.a.             Nil Cost
                                                   priced relative to the market (and allow transparent
                 NET                               decision making should cross subsidisation between
                 BENEFIT                           products and respective customer groups through specific
                 (medium)                          pricing arrangements be required).

                 Ratepayer Equity   Benefits      Transparent decision making regarding the provision of          Moderate          Low              Low Benefit
                                    Costs          non-commercial and community-focused activities should          n.a.              n.a.             Nil Cost


Waste Management Public Benefit Assessment                                                                                                                       Page 22