2022-07-18 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                    18 JULY 2022


activity when implementing the Competitive Code of Conduct. The expenditure thresholds
applicable for the 2022/23 financial year are as follows:
       $9.7 million for significant business activities; and
       $340,000 for Code of Competitive Conduct business activities.

2.      Application to Identified Business Activities for the 2022/23 Financial Year
Two of Council’s activities have been identified as competitive in nature that meet the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated annualised budgeted expenditure)
are:

    Business Activity            Expenditure               Reform Level
    Waste Management             $13.5 million             Significant
    Holiday Parks                $2.2 million              Code of Competitive Conduct
Note: annualised expenditure for significant activities includes total operating expenses less depreciation less
competitive neutrality costs plus interest and loan redemption. Expenditure for code of competitive conduct activities
includes total operating expenses plus interest.

In the 2022/23 financial year Council officers will undertake a broader review of Council operations
to identify any other business activities that may need to be considered under the NCP reforms for
future budget years.
Previous Council Consideration
Council has adopted NCP reforms to the Waste Management and Holiday Parks business activities
since de-amalgamation in 2014.
Finance
The financial implications of NCP reforms primarily revolve around pricing strategies for full cost
recovery, which includes a return on investment component. In addition, there is an administrative
effort in ensuring ongoing competitive neutrality compliance (i.e. budget preparation, reporting, full
cost pricing modelling).
Risks & Opportunities
Failure to appropriately review and apply competition reforms annually is a breach of the Local
Government Act 2009, and could also potentially result in competitive neutrality complaints should
appropriate adjustments not be incorporated into business activity pricing decisions.
Consultation
External Consultation - Community & Stakeholder
Council has referenced the latest advice received from by the Department of Local Government,
Racing and Multicultural Affairs in relation to expenditure thresholds
Internal Consultation
Nil.
Departments/Sections Consulted:
       Chief Executive Officer         Community Services                            X   Corporate Services
       Executive Support               Director                                      X   Director
                                       Community Development                         X   Financial Services
                                       Community Facilities                              Fleet
                                       Libraries & Galleries                             ICT
                                       Local Laws                                        Procurement
                                       Waste & Environmental Health                      Property
                                                                                         Revenue Services



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