The Commerce Commission has received a joint application from the Nelson City Council and the Tasman District Council to form a business unit to operate the two landfills in the Nelson-Tasman region.

At present, each council owns and operates a landfill. The Nelson City Council’s York Valley landfill is located in Bishopdale, Nelson, while the Tasman District Council’s Eves Valley landfill is located relatively close by on Eves Valley Road, west of Richmond.

The two Councils have asked for authorisation to establish a Regional Landfill Business Unit which would be responsible for managing and operating both landfills. While each Council would continue to own its respective landfill, under the proposed arrangement, from July 2017, the Eves Valley landfill would initially be closed with all rubbish in the Nelson-Tasman region being sent to the York Valley landfill. Sometime after 2030, the York Valley landfill would be closed and all rubbish in the region would be sent to a redeveloped Eves Valley landfill.

The proposed Regional Landfill Business Unit would comprise of members from both Councils and it would be responsible for setting the fees and charges for the disposal of waste at the landfills. To this extent, both Councils would still remain responsible for allowing access, and for setting the relevant fees, to use the region’s landfills.

The two Councils consider that any detriments from closing one of the region’s landfills would be outweighed by the resulting public benefits. These benefits include reducing the costs associated with operating two discrete landfills in the region, as well as eliminating the need for both Councils to separately invest in redeveloping their own landfills. The authorisation application has followed an extensive public consultation process and the two Councils consider the proposed arrangement is the best way to manage the region’s waste volumes.

Anyone who has an interest in this matter and who wants to make a submission can contact the Commission at registrar@comcom.govt.nz, with the reference “Nelson-Tasman Landfills” in the subject line of the email.

A public version of the application is available on the anti-competitive practices authorisations register.

Background

The Commission may grant authorisation under section 58 of the Commerce Act for certain agreements that may otherwise breach the Commerce Act if it is satisfied that the public benefits of the agreements outweigh the detriments arising from the loss of competition.

The granting of a restrictive trade practice authorisation protects the applicant from court action under the Commerce Act by the Commission and private individuals.

The Commission’s Authorisation Guidelines explain when anti-competitive agreements will be authorised and the process used to determine authorisation applications.