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

5. Recommendations
5.1      PBA Recommendation on Preferred Business Structure
The PBA shows that when comparing the net benefit of the available reform options, the adoption
of the Full Cost Pricing (FCP) business model provides the greater net community benefit when
compared to the Commercialised Business Unit (CBU) business model.

It is therefore recommended that to comply with legislative requirements associated with
the PBA process Council retains the Full Cost Pricing (FCP) business model for the Waste
Management business activity.

The FCP business model is appropriate moving forward as:

   The FCP business model is currently adopted by Council for the business and can be easily
    retained without any issues;
   Council still has the flexibility to voluntarily apply additional commercial principles that it
    considers will provide benefit to Council, ratepayers and the broader community at little to no
    additional cost to customers.
   The business currently has, and will continue to have, considerable legislative obligations
    regarding the services it offers to the community, with the provision of waste and recycling
    activities considered an essential community service with social and environmental objectives
    rather than profit maximisation being the primary focus.
   There will be increasing control and intervention in waste service provision resulting from
    Federal and State policies and agendas, with these changes likely to require continued
    involvement by Council in strategic decision making.


5.2      Timetable for Reform Implementation
Given FCP reforms are currently applied to the business current processes and timings
surrounding the annual review of business expenditure thresholds should be continued.




Waste Management Public Benefit Assessment                                                 Page 26