2016-03-07 General Committee - Item 2 - Waste Management PBA Final Report - ATTACHMENT 1

Impact Area       Impact Criteria     Impact     Benefits / Cost Description                                                         Qualitative Assessment
                                      Type
                                                                                                                        Likelihood       Consequence          Impact
                                                     may be enhanced via continued refinement of cost
                                                     attribution to the business, in addition to the recognition
                                                     and appropriate cost recovery of any non-commercial
                                                     functions and activities via CSO payments from the general
                                                     fund.
                                      Costs         Nil Identified                                                   n.a.              n.a.             Nil Cost
Noosa   Council   Community           Benefits      Non-commercial activities undertaken by the business             Very High         Very Low         Medium Benefit
Budget Position   Service Provision                  would be able to continue without community impact
                                                     funded via transparent CSO payments from the general
                  NET                                fund.
                  BENEFIT             Costs         Nil Identified                                                   n.a.              n.a.             Nil Cost
                  (medium)
                  Financial           Benefits      Requires the business to set prices on a commercial basis        Very High         Moderate         High Benefit
                  Sustainability      Costs          in a transparent manner to ensure long-term business             n.a.              n.a.             Nil Cost
                                                     viability and contribute to Council’s financial sustainability
                  NET                                through the payment of dividends, competitive neutrality
                  BENEFIT                            payments and taxation equivalents.
                  (high)
                  Ratepayer Impact    Benefits      There would be a greater focus on ensuring that charges          High              High             High Benefit
                                      Costs          are set at cost recovery levels, with dividend and taxation      n.a.              n.a.             Nil Cost
                  NET                                payments from the business potentially available to the
                  BENEFIT                            Council general fund for broader community benefit.
                  (high)
                  Compliance          Benefits      The application of full cost pricing will ensure that the        Very High         Moderate         High Benefit
                                                     business complies with the relevant aspects of competitive
                  NET                                neutrality applicable to a significant business activity in a
                  BENEFIT                            competitive business environment.
                  (medium)            Costs         Some minor compliance relating to the need to support a          High              Very Low         Low Cost
                                                     FCP model is required, including reporting the business
                                                     within the annual budget and annual report.
Market            Market Pricing      Benefits      The adoption of commercial, full cost recovery pricing           Very High         Moderate         High Benefit
                                      Costs          principles will ensure that product prices are targeted at a     n.a.              n.a.             Nil Cost
                  NET                                minimum level that reflects the full economic cost of
                  BENEFIT                            service, whilst ensuring that competitive neutrality
                  (high)                             principles are complied with when considering pricing
                                                     strategies with respect to market share.
                  Competitive         Benefits      Under both the CBU and FCP models, the business would            Very High         Moderate         High Benefit
                  Neutrality          Costs          be required to set prices under the competitive neutrality       n.a.              n.a.             Nil Cost
                                                     principle, therefore eliminating any potential advantages
                  NET                                associated with local government ownership and ensuring
                  BENEFIT                            that prices are set on the same basis as private operators.
                  (high)


Waste Management Public Benefit Assessment                                                                                                                          Page 17