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
                NET                                 occur, with Council directives funded via CSO payments to
                BENEFIT                             the business funded by the general rate (with Council
                (low)                               decisions being borne by all ratepayers rather than just
                                                    business customers).
                Inter-generational   Benefits      Adopting full cost pricing practices and recognition of        Very High         Moderate         High Benefit
                Equity               Costs          landfill lifecycle costs will provide the funds necessary to   n.a.              n.a.             Nil Cost
                                                    ensure sustainable service provision through the longer
                NET                                 term, ensuring that the incidence of costs is attributed to
                BENEFIT                             the period in which they are incurred rather than left for
                (high)                              future generations.
                Community            Benefits      Council retains some control over the setting of product       n.a.              n.a.             Nil Benefit
                Affordability                       prices (and therefore the impact on social welfare from
                                                    such decisions) under the CBU model.
                NET COST             Costs         Additional costs associated with the CBU model                 Low               Moderate         Low Cost
                (low)                               (compliance costs) would need to be recovered through
                                                    prices charged to customers..
Environment     Resource             Benefits      Nil identified                                                 n.a.              n.a.             Nil Benefit
                Sustainability       Costs         The CBU model may provide Council with reduced control         Low               Moderate         Low Cost
                                                    and flexibility to drive the achievement of potential future
                NET COST                            waste disposal targets, which may be more achievable
                (low)                               under the FCP model (with a CBU model more likely to
                                                    focus on the cheapest solution to maximise profitability).
                                     Costs         The CBU model may provide Council with reduced                 Low               Moderate         Low Cost
                                                    flexibility to adopt recycling and reuse strategies (on cost
                                                    grounds).
                Environmental        Benefits      Environmental outcomes would continue to be                    High              Very Low         Low Benefit
                Outcomes                            appropriately regulated under the CBU model.
                                     Costs         Service performance may diminish with associated               Low               Moderate         Low Cost
                MIXED                               environmental implications should the business not
                IMPACT                              undertake appropriate levels of operating and capital
                                                    investment in infrastructure (in line with identified levels
                                                    needed from established asset management plans and
                                                    licensing conditions).




Waste Management Public Benefit Assessment                                                                                                                          Page 23