Published03 Nov 1995
The Commerce Commission has cleared United Environmental Group Ltd to
acquire the waste collection and treatment business operated by Waste Management
NZ Ltd at Wiri.
Commission Deputy Chairman Peter Allport said that both companies provide a wide
range of waste management services, including the treatment of potentially hazardous
wastes.
While there may be some types of wastes which at present can be treated only by
United Environmental Group and Waste Management before being
disposed of in a landfill, the Commission is satisfied that new entry into the market
for this service is practicable, Mr Allport said.
In the Commission's view, the potential for other companies to enter the market
would constrain United Environmental Group from using its market position to
increase charges or to reduce the standard of its service. Mr Allport said that, in
reaching this view, the Commission had taken account of the likely cost of acquiring
processing plant and the procedures necessary to obtain resource use consents.
Mr Allport added that wider environmental issues which had been raised by some
members of the public in regard to this proposal were not matters within the
Commission's jurisdiction. However, it did not seem likely that any shortage of waste
treatment capacity or capability would result from this proposal.
Media contact: Communications Officer, Vincent Cholewa
Phone work (04) 498 0920, home (04) 479 1432