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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                             in designated areas. The fact that Council will tender for collection services in designated
                             areas is no answer to this problem. The tender will allow one or two large waste collection
                             companies to dominate the market for a significant period of time. This will have the effect
                             of freezing the market for the length of the tender and it is unlikely that smaller businesses
                             could continue to operate during this period.

                             (b)       By forcing businesses in designated areas to use the Council's waste collection
                             services, Council eliminates the ability of any business to negotiate the best rates for their
                             rate collection services and prices will increase. As smaller operators go out of business,
                             there will be less incentive for the remaining large operators to compete on price.

                             (c)      Commercial ratepayers and businesses are currently paying more than 30 (thirty)
                             percent more for their waste and recycling services as compared to all businesses outside
                             of the Noosa Council jurisdiction. The introduction of this new law simply compounds the
                             issues that arise from Council's currently flawed ratings system applied to commercial
                             properties.

                             (d)      Further, the fewer operators left in the marketplace, the less incentive for
                             operators to innovate or introduce technology and deliver higher quality services.

                             (e)       Ultimately, the result of the proposed local law will be increased and higher prices
                             for lower quality and less innovative services.

                             3.3      No Public Benefit

                             (a)      In addition to those matters set out in clause 1(3) of the Competition Principles
                             Agreement, guidance on matters to be considered when assessing the public benefit can
                             also be found in Re AC/ Operations Pty Ltd5. In that case the following, non-exhaustive list
                             was considered to be relevant to constituting the public benefit:
                                      (i)        economic development including encouragement of research and capital
                                      investment;
                                      (ii)       fostering business efficiency particularly when it results in improved
                                      competitiveness;
                                      (iii)      industrial rationalisation resulting in more efficient allocation of resources
                                      at a lower or contained unit product cost;
                                      (iv)       expansion of employment or prevention of unemployment through
                                      efficient industries;
                                      (v)        employment growth in particular regions;
                                      (vi)       industrial harmony;
                                      (vii)      assistance to make small business efficient including promoting

5 (1991) ATPR (Com) 50-108