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 reliance on the content of Chapter 5A and section 7, Council has entered into contractual
arrangements with an independent contractor about the conduct of general waste collection
and decided the frequency of general waste collection in designated areas in Council’s local
government area.
Under the proposed local law, Council’s current contractual arrangements with its contractor
about the conduct of general waste collection and the frequency of general waste collection in
designated areas in Council’s local government area may continue.
Reliance by Council on the provisions contained in Chapter 5A and section 7 is an integral
part of how Council regulates waste management in its local government area.
On the expiry of Chapter 5A and section 7, reliance by Council on the proposed local law will
be an integral part of how Council regulates waste management in its local government area.
For example, under each of Chapter 5A and the proposed local law, Council may supply to
premises the number of standard general waste containers that Council reasonably considers
is required at the premises as is necessary to contain the general waste produced at the
premises and require the occupier of the premises to place the waste container outside the
premises for the collection of general waste from the container on a scheduled collection day.
Collectively, Chapter 5A, section 7 and the utility charging provisions in the Local Government
Act 2009 result in a restriction on competition to the extent that Council designates an area
within its local government area in which Council will conduct general waste or green waste
collection and decides on the frequency of general waste or green waste collection in the
designated areas.
Under the proposed local law, the extent of the restriction on competition is subject to Council’s
decision to, under the proposed local law, designate areas within its local government area in
which Council will conduct general waste or green waste collection and decide the frequency
of general waste or green waste collection in the designated areas.
Council is not proposing that the nature of the restriction on competition under the
proposed local law will be different from the nature of the restriction on competition
which current exists under Chapter 5A and section 7.
Each of the realistic regulatory and non-regulatory alternatives identified above would:-
     (a) entail a local law which did not preserve Council’s ability to designate areas within
           its local government area in which Council may conduct general waste or green
           waste collection and decide the frequency of general waste or green waste
           collection in the designated areas or, alternatively, entail the making of no local law
           at all; and
      (b)   result in the removal of a restriction on competition.


Competitive neutrality
The Local Government Act 2009, chapter 3 part 2 division 2 is about the application of the
National Competition Policy Agreements in relation to the significant business activities of a
local government.
Under the competitive neutrality principle, an entity that is conducting a business activity in
competition with the private sector should not enjoy a net advantage over competitors only
because the entity is in the public sector.
Relevantly, a business activity is trading in goods and services by Council, for example, the
utility of waste management collection.