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

Impact Assessment Summary
The following table provides a summary of the overall impacts of the alternative business models
under consideration.

Impact Area          Impact Criteria                   FCP                    CBU
Business Unit        Pricing                           NET COST (very low)    NET COST (very low)
Financial Position   Non-commercial activities         NIL IMPACT             NIL IMPACT
                     Administration                    NET COST (medium)      NET COST (medium)
                     Operational Efficiency            NET COST (low)         NET BENEFIT (low)
                     Business Definition               NET BENEFIT (medium)   NET BENEFIT (low)
Noosa Council        Community Service Provision       NET BENEFIT (medium)   NET BENEFIT
Budget Position                                                               (medium)
                     Financial Sustainability          NET BENEFIT (high)     NET BENEFIT
                                                                              (medium)
                     Ratepayer Impact                  NET BENEFIT (high)     NET BENEFIT
                                                                              (medium)
                     Compliance                        NET BENEFIT (medium)   MIXED IMPACT
Market               Market Pricing                    NET BENEFIT (high)     NET BENEFIT (low)
                     Competitive Neutrality            NET BENEFIT (high)     NET BENEFIT (high)
Business Staff       Resourcing                        NIL IMPACT             NET COST (low)
                     Morale                            NIL IMPACT             MIXED IMPACT
Customers            Pricing                           NET BENEFIT (high)     NET BENEFIT (high)
                     Customer Service Provision        NET BENEFIT (medium)   MIXED IMPACT
Regional             Supporting Regional Development   NET BENEFIT (medium)   NET BENEFIT (low)
Development and      Sustainable Investment            NET BENEFIT (low)      NET BENEFIT (low)
Economic Stability
Social Welfare and   Equity Between Customers          NET BENEFIT (medium)   NET BENEFIT
Equity                                                                        (medium)
                     Ratepayer Equity                  NET BENEFIT (low)      NET BENEFIT (low)
                     Inter-generational Equity         NET BENEFIT (high)     NET BENEFIT (high)
                     Community Affordability           NIL IMPACT             NET COST (low)
Environment          Resource Sustainability           NET BENEFIT (low)      NET COST (low)
                     Environmental Outcomes            MIXED IMPACT           MIXED IMPACT
CONSOLIDATED OUTCOME                                   NET BENEFIT            NET BENEFIT
                                                       (medium)               (low)

A brief summary of the net benefit for each impact area is provided below.

Financial Position of the Business - There are negligible impacts on the financial position of the
business from the adoption of either the FCP or CBU models, given both reform options require full
cost pricing principles to be applied to the business.

Noosa Council Budget Position - An overall net benefit for the Noosa Council budget would be
likely if the FCP model was adopted. Under both options Council’s financial sustainability will be
enhanced although Council will also be faced with increased compliance costs to support the
needs of the CBU.

Market - An overall net benefit for the Noosa market would be likely if the FCP model was adopted,
as whilst both reform options require full cost pricing principles to be applied to the business
additional compliance costs would need to be recovered from customers under the CBU model.

Business Staff - There are mixed impacts for business staff from the adoption of either models.
although the creation of additional management autonomy under the CBU model would potentially
realise a stronger business focus for the business employees.

Customers - There is likely to be a net benefit for consumers from the adoption of the FCP model.
Despite price increases being required under both models to ensure that full cost pricing

Waste Management Public Benefit Assessment                                                   Page 4