2014-09-16 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                             16 September 2014


7                        2014/15 NATIONAL COMPETITION POLICY REFORM APPLICATION
DOCUMENT INFORM AT ION




Author                              Director Corporate Services, Michael Shave
                                    Corporate Services Department

Index                               ECM/ Subject/ Financial Management / Accounting

Attachments                         Nil


EXECUTIVE SUMMARY
Not Applicable

RECOMMENDATION
That Council note the report by the Director Corporate Services to the Planning &
Organisation Committee Meeting dated 16 September 2014 and

A.                       Apply the Full Cost Pricing reform option to the Waste Management business activity
                         for the 2014/15 financial year in accordance with section 44(1)(b) of the Local
                         Government Act 2009; and

B.                       Apply the Code of Competitive Conduct to the Holiday Parks business activity for the
                         2014/15 financial year in accordance with section 47 of the Local Government Act
                         2009.


REPORT
Background

The Local Government Act 2009 requires Council to decide each financial year whether to
apply National Competition Policy (NCP) reform to its identified business activities.

Certain activities of Council are required to be identified as business activities if they trade in
goods and services that could potentially be delivered by a private sector firm for the
purposes of earning profits in the absence of Council’s involvement. They do not include the
non-business, non-profit activities of Council such as libraries, swimming pools, parks
maintenance etc.

The primary purpose for Councils to apply NCP reforms to its business activities is to assist
in removing anti-competitive conduct, encourage greater transparency in the operation of its
competitive activities and improve the allocation of Council’s limited resources.

A number of different reform options are provided under legislation for application to
identified business activities. Commercialisation or Full Cost pricing reforms are generally
applied to larger or financially significant business activities, whereas the Code of
Competitive Conduct is applied to the smaller or prescribed business activities.

The general premise to consider is that the larger the Council business activity the larger the
potential financial impact on the local economy and potential competitors, and hence greater
level of reform applied to ensure ongoing competitive neutrality.




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