ACCC okays Gippsland LG recycling/procurement collective

A proposal
for a glass and mixed recycling collective in eastern Victoria has received
interim authorisation from the national competition regulator.

A draft determination  authorising the Gippsland Waste and Resource Recovery Group (GWRRG) and six Gippsland councils to jointly tender, procure and manage glass and mixed recycling processing services was published by the Australian Competition and Consumer Commission (ACCC) last week.

Waste service suppliers will be able to tender to supply each council and/or group 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 six councils include Bass Coast Shire Council, Baw Baw Shire Council, East Gippsland Shire Council, Latrobe City Council, South Gippsland Shire Council, and Wellington Shire Council.

In making
its determination, the ACCC said the collective was likely to provide:

• 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 individually;
• and
  transaction cost savings.