The ACCC has released a draft determination proposing to grant authorisation to enable the Gippsland Waste and Resource Recovery Group (GWRRG) and 6 councils located in Gippsland, Victoria, to jointly tender, procure and manage glass and mixed recycling processing services.
Waste service suppliers will be able to tender to supply each council and/or groups of councils. The councils are likely to sign individual contracts with the successful tenderer/s but they may also engage in joint management activities in relation to the contracts with the waste service supplier(s).
The 6 councils are: Bass Coast Shire Council, Baw Baw Shire Council, East Gippsland Shire Council, Latrobe City Council, South Gippsland Shire Council and Wellington Shire Council.
The ACCC considers the joint tendering, procurement and management of recycling processing services is likely to result in public benefits in the form of; environmental benefits; providing greater long term certainty for councils and potential waste service suppliers; increased competition for service contracts with more joint tender participants than would be the case if councils sought tenders on an individual basis; and transaction cost savings.
The ACCC considers that the conduct is likely to result in limited public detriment. Councils will independently decide whether it is in their best interests to procure glass and mixed recycling processing services through the joint tender process, or through individual negotiations with a supplier. All potential service providers will continue to have opportunities to compete to supply some or all of the participating councils.
In recognition of the long term contracts the participating councils expect to enter following the tender process, the ACCC proposes to grant authorisation until 30 December 2037.
The ACCC has also granted interim authorisation to enable the participating councils to commence the tender process while the ACCC is considering the substantive application. Interim authorisation does not extend to the councils selecting or entering into contracts with recycling processing service suppliers.
Further information about the ACCC’s interim authorisation and draft determination is available on the ACCC public register at: Gippsland Waste and Resource Recovery Group & Ors