2018-03-06 S&O Agenda - Attachment 1 to Item 2 - Public Interest Test Report

Noosa Council - Public Interest Test Report: Proposed Local Law No. 7 (Waste Management) 2017
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                                3.1      Anti-competitive provisions in the proposed local law

                                (a)      Pursuant to section l5(a) of the Local Government Regulation 2012, a provision is
                                anti- competitive if it creates a barrier to:
                                         (i)        entry to a market; or
                                         (ii)       competition within a market.

                                (b)       The proposed local law is anti-competitive in that it allows Council to create a
                                monopoly over commercial waste collection services in designated areas thereby creating a
                                barrier to competition in that market.

                                (c)      In addition to WRIQ's concerns about the impact on competition in the commercial
                                waste collection industry, the objects of the law show that the proposed local law may
                                extend further than regulating the collection, storage and disposal of domestic and
                                commercial waste and may extend to all forms of waste collection and disposal 4. This
                                creates great uncertainty for business moving forward. For example, the intent to regulate
                                the disposal of 'waste' at waste facilities undermines all existing industry assets whose
                                owners have invested locally, employed local people and obtained the required state
                                approvals for the operation of the facilities. It will also detrimentally impact all companies
                                with investments and assets in the proximity to this. The ability of Council to interfere in the
                                market as it chooses creates instability and uncertainty and will discourage future
                                investment in the industry.

                                (d)       Council has already demonstrated that it can use its ability, under the Chapter 5A
                                provisions, to designate an area for general waste or green waste collection to interfere in
                                the market by monopolising commercial waste collections. As example it already mandates
                                all commercial businesses must use Council only provided services and as result local
                                business has no option to seek an alternate service provider. This is anti-competitive and
                                lacks all democratic privileges assigned to all commercial business in every other local
                                government jurisdiction. Business are being forced to use Council's prescribed services
                                without any option to "opt out". This not only impacts the waste management and recycling
                                industry, it also has a negative impact on businesses who are left unable to negotiate the
                                best deal for their waste collection services or organise their waste and recycling collection
                                operations in a manner that best suits their business needs.

                                3.2      Introduction of the proposed local law will increase prices for consumers

                                (a)       As set out at paragraph 3.1 (b) above, the introduction of the proposed local law
                                will allow the Council to maintain its monopoly over waste and recycling collection services

4
    See: paragraph 2(c) above