Ireland – Competition Authority proposes reform of household waste collection services

The Competition Authority has published the results of its investigation into allegations of breaches of competition law in household waste collection services. While The Competition Authority did not find any breach of competition law, the Authority does believe that the market for household waste collection is not working well for consumers. In its report The Competition Authority recommends that the Department for the Environment, Heritage and Local Government consider reform of the household waste collection sector. According to Paul Gorecki, Director of the Monopolies Division in The Competition Authority, "The market for household waste collection is not working well for consumers. Competition law is neither an appropriate or effective remedy in this case. However extensive international experience demonstrates that competitive tendering is the best method of ensuring that household waste collection providers deliver consumers good service at competitive prices."



Greenstar‘‘s Gabriel Dennison noted that the Competition Authority concludes Greenstar are 1.6% more expensive than a basket of other operators notwithstanding theirr local monopoly in the North East Wicklow area. Dennison observes "As to reform of the system it is not a bad idea in itself however the present somewhat anarchic arrangements have settled down to a large extent and work well generally. In any event I don‘‘t believe there is any real political appetite for such fundamental reform. Mind you it would help if a rule was introduced that all householders had to account for their waste".



At present there is absolutely no requirement to partake of a collection service or to explain to anybody what you do with your household waste. As a result the EPA estimates in its recent report on illegal waste activities (notice of which was circulated by RRL) that roughly one-third of all household waste in Ireland is "unaccounted for" the bulk of which is presumed to be sub-optimally managed in some manner or other, eg fly-tipped in bogs, burned in the back yard etc. The proportion unaccounted for ranges from 0% in Greater Dublin to 45% in County Donegal! In general the proportion is highest in the midlands and west ,i.e. the lowest density population areas. The EPA also acknowledges that the proportion is rising in response to the introduction of PAYT in Jan 2005.



A key issue, says Gabriel Dennison, is the continuing confusion caused in the marketplace by the dual role of local authorities in waste management, i.e. poacher and gamekeeper. "Although many authorities have indeed vacated waste collection most of the larger cities and some counties still collect household waste and some commercial waste. In doing so they regulate themselves as well as us! Local authorities also own and operate 32 of the 35 active landfill sites in Ireland. Of course these are all licensed by the independent EPA but local authorities are also planning authorities and so there is again a potential conflict of interest. Finally local authorities get substantial capital grants from central government (up to 75%) for waste management infrastructure while the private sector gets nothing from the State and must finance from own resources. In a small country of 4 million people this leads to considerable inefficiencies and duplication and risks promoting a trophy culture amongst local government officers – why not build big and expensive if the bulk of the cost is provided by grant?">>>