SA joint waste collection tender authorised by ACCC

The Australian Competition and Consumer Commission (ACCC) has authorised a group initiative of SA councils to jointly procure kerbside waste collection services.

The councils of Adelaide, Charles Sturt, Marion and Port Adelaide Enfield have been authorised to appoint a single provider for kerbside waste collection services.

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In the context of procuring waste services, councils may be considered to be each other’s competitors, which is why authorisation from the ACCC was required.

Broadly, the ACCC can grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any detriment.

Interim authorisation was granted on 20 July 2018, which allowed the councils to commence the tender processes. The tender closes on 12 December 2018 and will cover around 180,000 rateable properties.

According to the ACCC, it is common practice throughout Australia for local councils to jointly tender for waste services to reduce transaction costs, pool resources and expertise and achieve economies of scale. The ACCC has authorised 30 of these agreements so far, after concluding they were likely to benefit the public.

ACCC Commissioner Sarah Court said a joint tender process is likely to improve the four councils’ purchasing power and encourage more competition from suppliers than if each council conducted a separate tender process.

“It is common for groups of local councils to jointly procure waste services. The ACCC has authorised many such arrangements across Australia over the years,” she said.

“The joint tender process is likely to result in cost savings through encouraging more competitive bids, reducing transaction costs, and other efficiencies. These cost savings can be passed on to Adelaide residents in the form of lower costs or improved services,” Ms Court said.

The ACCC considered information both for and against the joint tender arrangement.

“Some suppliers raised concerns that the size of the proposed contract would deter some suppliers from tendering, resulting in a worse deal for ratepayers,” Ms Court said

“While there may be some companies that choose not to participate, the larger tender is also likely to attract additional bidders, and overall we consider most of the potential suppliers which would bid if the councils contracted separately are also likely to compete for the joint contract.”

“The councils have the experience and incentive to decide whether running a single tender process for a larger volume of work or four smaller, separate tenders, is likely to deliver the best outcomes for their respective communities.”

The ACCC also considered the longer-term impact of the joint tender on competition for waste collection services in Adelaide and found unsuccessful applicants will continue to have other opportunities to provide waste management services in other parts of the city.

SA EPA begin Operation Cover-Up

The SA Environment Protection Authority (EPA) has begun a targeted operation on truck drivers who aren’t properly covering their waste in transport.

Operation Cover-Up has observed 25 travelling on Port Wakefield Road on the first day of action, all of which were found to be compliant.

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SA EPA Acting Manager Investigations and Waste Tania Kiley said it is promising that these transporters are adhering to the law.

“This is a positive sign that truck drivers and waste companies are getting the message. Failing to properly cover waste while transporting material to waste management facilities poses a health and safety risk to the community,” Ms Kiley said.

“The type of waste found in waste vehicles includes demolition material amongst other waste items.”

“This can create a hazard for other road uses, the community, and can also lead to waste ending up in our stormwater and local waterways,” she said.

The maximum penalty for the offence is $30,000 or an expiation fee of $160.

“The EPA will be continuing Operation Cover-Up in coming weeks and those that do not comply with their obligations under the Environment Protection Act will be issued an expiation notice,” Ms Kiley said.

“We began our operation on Port Wakefield Road this year in response to numerous community complaints about litter on public roadways,” she said.

“Other areas across metropolitan Adelaide will also be targeted to ensure compliance with general waste transport provisions of the Environment Protection (Waste to Resources) Policy 2010,” she said.

The SA EPA has encouraged anyone who sees transporters failing to cover their load while travelling, to call the EPA Hotline on 08 8204 2004.

SA plan for future of waste management

The SA Government has revealed a 30-year plan for the future of the waste and resource recovery industry in the state, estimating almost 5000 jobs could emerge in the future.

The Waste Resource and Recovery Infrastructure Plan outlines a pathway for the industry and will attempt to guide SA with metropolitan and regional profiles. It aims to pave the way for the state to exceed its 81.5 per cent diversion from landfill figure.

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It also aims to increase the amount of waste diverted from landfill and analyse the unique needs, opportunities and challenges facing communities.

New infrastructure is also planned to be developed, including transport and processing equipment, bins, covered compost facilities, monitoring technology, training, market development, and integrated waste data systems.

Projections for future trends within the plan include both a 10 and 30-year scenario. According to the 30-year estimate, the plan could deliver an additional $660.5 million in gross state product and about 4969 full-time-equivalent jobs.

Currently, the waste and resource recovery industry has an annual turnover of $1 billion, contributes $500 million to the GSP, and employs 5000 people across the state.

SA Sustainability, Environment and Conservation Minister Ian Hunter said the SA Government is looking to further build their already successful and growing industry.

“This plan provides a vision where waste is managed as a resource through re-use and recycling, energy recovery is limited to non-recyclable materials and landfill is virtually eliminated,” he said.

“The transition to a more sustainable circular economy requires innovation along with investment and development of new infrastructure and technology to enhance resource efficiency and create business opportunities both locally and overseas.”

“I encourage the public and private sectors to continue to lead the way to a more sustainable future for our State through continued investment in this important sector of our economy.”

You can read the Waste and Resource Recovery Infrastructure Plan here.