Labor and Liberals consorting to create new private waste monopoly - 18 March 2010

Greens MP Ian Cohen is calling on the major parties to break up the WSN Environmental Solutions monopoly before it is transferred into private hands.

“Not only are we facing an ill-conceived privatisation agenda, but the structure of the privatisation process is one which will see Sydney households paying more to a privatised waste goliath holding 90% of Sydney’s waste infrastructure. What incentive will a private waste monopoly have to invest in better recycling technology?” says Mr Cohen.

“Without amendments to break up ownership of the transfer stations and landfills we are simply exchanging a public monopoly for a private one. Failure to break this monopoly will severely punish Sydney households and ratepayers with ever increasing waste disposal costs and provide a powerful disincentive for private investment in advanced waste technologies.”

A proposed amendment from the Liberal and Labor Parties simply requires the Treasurer to report on strategies to resolve competition issues prior to the sale. There is nothing stopping the Treasurer from selling all WSN assets to one entity. The amendment is totally ineffectual.

“The Liberal Party appears keen to jump on board a Labor privatisation agenda that will greatly increase waste management costs without any corresponding environmental benefit. Liberal support for the current proposal is decimating a core element of the party’s environmental policy. The Coalition policy on privatisation of WSN clearly states;

“A Coalition Government will break the Government’s near-monopoly on putrescible waste in the Sydney region by selling WSN Environmental Services’ transfer stations and landfills to the private sector. The corporation will be split into at least two parts to ensure competition and stimulate innovation. To maintain competition, we will legislate to ensure that no private company or individual can control more than 45% of Sydney’s putrescible waste stream in the future.”

“The amendments being put forward by the Liberal Party do not adhere to their own policy. Every Liberal member in the Legislative Assembly expressed a desire to stop a public monopoly becoming a private monopoly during debate. It appears the policy lite NSW Liberal Party can’t even keep its word on what little policy it does have.”