2018-08-07 S&O Agenda - Att 1 to Item 7 - Public Interest Test Report

                         Public Interest Test Plan — Noosa Shire Council
Administration and Other Local Laws (Amendment) Local Law (No. 1) 2018 and Administration and Other
Subordinate Local Laws (Amendment) Subordinate Local Law (No. 1) 2018                        Page 8


Schedule 3 Current Environment — Operation of Accommodation Parks
CURRENT ENVIRONMENT

The proposed local law and the proposed subordinate local law provide that a person must not carry
on the business of operating an accommodation park without an approval issued by Council under the
local law. The granting of an approval is subject to Council being satisfied being satisfied the
operation and management of the accommodation park will comply with the criteria laid down under
the proposed subordinate local law.

In granting an approval, Council may impose conditions relating to the conduct of the business activity
which the operator must comply with. Conditions can, for example, impose limits on the number of
persons to be accommodated on a site, require the operator to maintain buffer zones and require the
provision of adequate amenities. However, conditions imposed in an approval must be consistent
with any statutory authorisation or approval for the establishment of the accommodation park.

The approval regime established under the local law is directed at a business activity - the operation
of an accommodation park. In its conferring of a discretion as to the grant of an approval and to the
content of conditions to which an approval issued will be subject, the approval regime imposes both a
barrier to entry to a particular market and a restriction on competitive conduct within the market.
Other provisions dealing with regulating the conduct of the business are also anti-competitive, such as
the requirement to keep a register detailing activities of the operation of an accommodation park.

Council considers that some form of local government control or regulation over the “operation” of
accommodation parks is necessary to safeguard public health and safety, protect the amenity of the
local area and to minimise nuisances.

Further, it is considered that, without the local law in place business has the potential to operate
without proper regard to adequate standards of health, safety and amenity. In doing so, the resultant
costs from environmental damage, loss of amenity, public health and safety risks and loss of quality of
life through nuisances, would be born by third parties rather than being included in the transaction
between business and consumers.

CONFIRM SECTIONS ARE ANTI-COMPETITIVE

The sections are confirmed as anti-competitive and no errors in analysis were made in the
identification stage.

REGULATORY AND NON-REGULATORY ALTERNATIVES TO THE PROPOSED LOCAL LAW
AND SUBORDINATE LOCAL LAW

The objectives of the prescribed activity are achieved by using a conventional approval based system,
whereby, upon application to Council, persons are granted approvals to conduct the business of an
accommodation park subject to conditions.

Regulatory and non-regulatory alternatives to the approval system include:

       No regulation

       Self-regulation

       Co-regulation

       Public information and education programs

       Economic incentives

       Industry accreditation