Anti-Competitive Provisions included in the public interest review

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Public Interest Review Consultation Paper
Proposed Amendments to Sunshine Coast Council
Local Laws
November 2015
Purpose of this document
Before making a local law, local governments are required to review any laws that restrict
competition to ensure that they are in the public interest. At its meeting on 15 October 2015, the
Sunshine Coast Council proposed a range of amendments to its current local laws. Some of the
amendments have the potential to restrict competition (i.e. they may be ‘anti-competitive
provisions’), so the Council is consulting with the community, and especially businesses that might
be affected, about whether the proposed changes are in the overall public interest. The purpose of
this document is to:

provide further information about the anti-competitive provisions; and

seek community feedback to help the Council decide whether the anti-competitive
provisions should be retained in the proposed local law in the overall public interest.
Background to public interest reviews
Why are public interest reviews required?
In April 1995, all Australian governments committed to the National Competition Policy to establish
a national approach to achieve greater economic efficiency and to improve the overall
competitiveness of the Australian economy. One of the key principles of the National Competition
Policy was a commitment that all governments, including local governments, would not make laws
that restricted competition unless it could be demonstrated that:

the benefits of the restriction to the community as a whole outweighed the costs, and

the objectives of the law could only be achieved by restricting competition.
To give effect to this principle, governments agreed to review all laws that restrict competition. For
local governments, this requirement is enshrined in section 38 of the Local Government Act 2009,
which states that a Council must not make a local law that contains an anti-competitive provision
unless it has complied with the procedures prescribed by the State for the review of anticompetitive provisions. These procedures are contained in the National Competition Policy –
Guidelines for conducting reviews on anti-competitive provisions in local laws, Version 1, made by
the State Government (the ‘Public Interest Review guidelines’).
What is an anti-competitive provision?
An anti-competitive provision is a provision that the local government identifies as creating a barrier
to:
(a) entry to a market; or
(b) competition within a market.
Creating barriers to entering a market
The Public Interest Review guidelines describe this type of anti-competitive provision in a local law
as either prohibiting particular business activities or placing obligations on the operators of
business activities.
Restricting competition in the market
The Public Interest Review guidelines describe this type of anti-competitive provision as giving
some benefit or imposing some hindrance on particular business operators.
Anti-competitive provisions excluded from the review
The Public Interest Review guidelines indicate that the following types of anti-competitive
provisions may be excluded from a public interest review:
1) local laws regulating the behaviour of individuals
2) local laws dealing solely with internal administrative procedures of a local government
3) local laws intended as legitimate measures to combat the spread of pests and disease
4) local laws to ensure accepted public health and safety standards are met
5) repealing local laws.
In the Council’s current proposed amendments, the following anti-competitive provision has been
excluded from the review:
Schedule 1, Subordinate Local Law No.2 (Animal Management) 2011
In this schedule, a prohibition on keeping more than 10 bee hives will be imposed in
relation to properties between 2001 square metres and 4000 square metres in size.
This provision is anti-competitive because it potentially restricts a beekeeper’s business,
but it is excluded from the review as its intention is to ensure accepted public health and
safety standards are met. Under the current provisions, there is no restriction on the
number of hives that can be kept on lots larger than 2001 square metres, which will include
many properties in urban and rural-residential areas. The provision brings the local law into
line with the State Government’s bee-keeping guidelines.
Anti-competitive provisions that have been assessed as
having no significant impacts
Under the Public Interest Review guidelines, the Council is not required to undertake a public
interest review of any anti-competitive provisions that the Council considers, following a preliminary
assessment, to have no significant impacts.
After a preliminary assessment, the Council considers the following anti-competitive provisions will
have no significant impacts:
Subordinate Local Law No.1 (Administration) 2011, Schedule 12 (Undertaking
regulated activities regarding human remains— (a) disturbance of human remains
buried outside a cemetery; or (c) disturbance of human remains in a local
government cemetery)
In this schedule, the following additional documents and materials will be required to
accompany applications for approval:
(a) a site plan and specifications for any work to be undertaken and materials and
equipment used; and
Public Interest Review – Amendments to Local Laws
3
(b) copies of all legal documents pertaining to any proposed disturbance of human
remains; and
(c) signed consent of the person or entity who will undertake the work; and
(d) signed consent of the executor of the will, or the next of kin, of the deceased person
whose remains are to be disturbed.
Although this provision potentially imposes additional requirements on businesses such as
funeral directors, the impacts are not considered significant as they are only minor
procedural requirements that reflect existing practice for these activities.
Subordinate Local Law No.1 (Administration) 2011, Schedule 13 (Undertaking
regulated activities regarding human remains— (b) burial or disposal of human
remains outside a cemetery)
In this schedule, new mandatory conditions will be imposed to the effect that approval
holders must ensure that:
(a) the activity is carried out by a recognised funeral director; and
(b) no public health risk arises from the activity; and
(c) the funeral director complies with directions given by an authorised person about–
i.
the preparation of a grave for the burial of human remains; or
ii.
other matters affecting the disposal of human remains; and
(d) Global Positioning System (GPS) reference points are captured and recorded and
forwarded to the local government to identify the final burial location, at the cost of the
approval holder; and
(e) a comprehensive description of the burial method and ongoing management of the site
is supplied to the local government following the burial; and
(f) authorisation is given to the local government to add the details of the burial to the local
government property data file.
Although this provision potentially imposes additional requirements on businesses such as
funeral directors, the impacts are not considered significant as they are only minor
procedural requirements that reflect existing practice for these activities.
Subordinate Local Law No. 1 (Administration) 2011 – Schedule 18 (Carrying out
works on a road or interfering with a road or its operation)
In this schedule, the following additional documents and materials will be required to
accompany applications for approval:
(a) if the application is for domestic work on a road reserve – a site plan, clearly
showing all proposed construction within the road reserve; and
(b) if the application is for commercial and other work on a road reserve –
i.
site plans;
ii.
landscape plans;
iii.
a program of work;
iv.
a traffic and pedestrian management plan prepared by a qualified
professional.
Although this provision potentially imposes additional requirements on businesses working
on roads and road reserves, the impacts are not considered significant as they are only
minor procedural requirements that reflect existing practice and ensure safe conduct of
these activities.
Anti-competitive provisions included in this public interest
review
The amendments in the table below are considered by the Council to be anti-competitive
provisions with potential significant impacts and are therefore included in this public interest review.
The Council invites feedback from residents and businesses about impacts of the anticompetitive provisions listed in the table below, especially:

any costs of compliance for businesses;

any reasonable alternatives to the anti-competitive provision and the comparable costs
of these alternatives;

the benefits to the community from the anti-competitive provision.
Community feedback will assist the Council to decide whether, on balance, the anticompetitive provisions should be retained in the proposed local law in the overall public
interest.
The due date for submissions is 30 November 2015. Options for making submissions
online, by email or by post can be found at:
http://www.sunshinecoast.qld.gov.au/sitePage.cfm?code=public-interest-tests-2015
Public Interest Review – Amendments to Local Laws
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TABLE – Anti-Competitive Provisions included in the public interest review (community feedback invited)
Draft Amendment Local Law (Miscellaneous) 2016
Local Law
Current Status
Proposed Change
Reason for change
Potential anti-competitive impact
Local Law No. 1
(Administration)
2011
Shopping centre
includes only a
structure or group of
buildings with 2 or
more shops
Extend definition of “shopping centre”
to include “a standalone shop that
provides trolleys for the use of
customers”
Under Local Law No.3, s,23, only
shops in shopping centres are
required to ensure that shopping
trolleys remain in the shopping centre
precinct. The change in definition will
mean that larger standalone shops
that provide trolleys (e.g. Bunnings)
must also ensure that trolleys stay
within the precinct.
The amendment creates an additional
requirement on standalone shops to
ensure their trolleys stay within the
precinct, which could increase costs
for these businesses.
Local Law No. 1
(Administration)
2011
Current prescribed
activity on local
government
controlled areas and
roads–
Remove the prescribed activity on
local government controlled areas and
roads relating to “operating model
aircraft propelled by a motor” and
replace with–
“Operating model
aircraft propelled by
a motor”
‘(o) launching or landing a model
aircraft weighing more than 500 grams
or a remotely piloted aircraft weighing
more than 500 grams, other than an
unmanned balloon or unmanned kite’
Currently no provision in the local laws
to regulate the use of unmanned
aircraft (commonly referred to as
UAV’s or Drones) for commercial
purposes. The inclusion of this
prescribed activity will allow council to
regulate and condition approvals for
the use of UAV’s or Drones on council
owned or controlled land and remove
the requirement for individuals
operating a small recreational model
aircraft propelled by a motor to apply
for an approval (these individuals are
still bound by CASA regulations about
safe use of such model aircraft).
Conditions of approval for UAVs and
drones will be subject to the individual
complying with CASA regulations.
Amendment will require businesses
that operate remotely piloted aircraft
(e.g. drones and UAVs) weighing
more than 500 grams on local
government controlled areas or roads
to obtain an approval, which may
affect businesses such as wedding
photographers.
Model aircraft are
recreational, not
commercial, which
leaves commercial
unmanned aircraft
(drones) unregulated
Draft Amendment Subordinate Local Law No. 1 (Administration) 2016
Subordinate
Local Law
Current Status
Subordinate Local
Law No. 1
(Administration)
2011
For several
prescribed activities
on council
controlled land,
holding public
liability insurance is
a usual condition
but not a mandatory
condition
In schedules 4, 6, 8, 14 insert the
following as a condition that must be
imposed:
The schedule does
not currently
specify:
For various types of applications (e.g.
to plant/clear/damage vegetation, to
erect/install a columbarium/
mausoleum/vault, to install a
memorial/plaque in a park or reserve
or road other than a cemetery, to
install public art on a local government
controlled area or road), the
amendments include details about
Subordinate Local
Law No. 1
(Administration)
2011 – Schedule 4
Alteration or
improvement to
local government
controlled areas or
roads



the documents
and materials to
accompany
applications,
additional
criteria for
deciding
applications
the conditions
that will always
or will ordinarily
be imposed on
approvals
Proposed Change
Reason for change
This change brings the laws into line
with council’s current requirement of
mandatory public liability insurance for
these activities.
The change will impose a uniform
requirement on businesses to obtain
public liability insurance before
undertaking activities on Councilcontrolled land. This may cause
additional costs for businesses
seeking approvals where this level of
public liability insurance is not
currently required.
Amendments made to provide clarity
and consistency for the community
and officers in applying for and
assessing approvals under Schedule
4 of Subordinate Local Law No. 1
(Administration) 2011
The amendments may increase
requirements on businesses because
they will:
‘A condition that must be imposed on
all approvals is that the approval
holder must maintain, at all times
during the term of the approval, a
public liability insurance policy of not
less than $20,000,000 covering the
prescribed activity.’



the documents and materials that
must accompany the various
types of applications;
the additional criteria for the
various types of applications
the conditions that will always or
will ordinarily be imposed on the
various types of approvals
Potential anti-competitive impact
 require additional documents and
materials for businesses applying to
do certain things on LGCAs and
roads
 impose additional standard
conditions on businesses obtaining
approvals
Public Interest Review – Amendments to Local Laws
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Subordinate
Local Law
Current Status
Proposed Change
Reason for change
Potential anti-competitive impact
Subordinate Local
Law No. 1
(Administration)
2011 – Schedule 6
Commercial use of
local government
controlled roads
and areas
The schedule does
not differentiate
between the
application
requirements,
applicable criteria
and standard
conditions for the
various types of
commercial use
approvals
The amendments stipulate different
requirements for the different types of
commercial use approvals, such as
outdoor dining, goods on footpaths,
roadside stalls, fundraising street
stalls, land-based physical fitness or
wellbeing activities, and itinerant food
vending,
Amendments made to provide clarity
and consistency for the community
and officers in applying for and
assessing approvals under Schedule
6 of Subordinate Local Law No. 1
(Administration) 2011
The amendments to schedule 6 may
impact on businesses because they
will:
Subordinate Local
Law No. 1
(Administration)
2011 – Schedule 8
Placement of
movable
advertising devices
Current requirement
for all movable
advertising devices
that are exempt
from requiring an
approval is that they
are required to be
at least 180
millimetres from the
kerb.
Amend the 180 millimetre requirement
and extend to 600 millimetres
Following a number of complaints
from the community on accessibility
for pedestrians and people with
disabilities. The proposed changes
seek to address some of the
accessibility concerns we currently
have with the placement of movable
advertising devices across the region.
The amendment may impose
additional requirements on some
businesses
Subordinate Local
Law No. 1
(Administration)
2011 – Schedule 8
Placement of
movable
advertising devices
No requirement for
an “A Frame” or
“Sandwich board” to
be placed
immediately
adjacent to the
primary place of
business
Include requirement for a “sandwich
board sign” to be displayed adjacent
to the business premises.
Following a number of complaints
about the placement of “sandwich
boards” sometimes several kilometres
from a business premises, the
requirement to place the sign adjacent
to the business premises seeks to
address some of the visual amenity
complaints Council receives and
provide equity for all business wishing
to advertise their businesses.
The amendment may impose
additional requirements on some
businesses
 require additional documents and
materials for businesses applying to
make commercial use of LGCAs
and roads
 impose additional standard
conditions on businesses who
obtain approvals
Subordinate
Local Law
Current Status
Subordinate Local
Law No. 1
(Administration)
2011 – Schedule
12 Undertaking
regulated activities
regarding human
remains— (a)
disturbance of
human remains
buried outside a
cemetery; or (c)
disturbance of
human remains in
a local government
cemetery
Currently no
requirement for
applicants applying
for an approval
under this schedule
to provide
documents or
materials for
applications
Proposed Change
Include the following documents and
materials that must accompanying
application for approval –
(a) a site plan and specifications for
any work to be undertaken and
materials and equipment used; and
Reason for change
This additional information will assist
officers in making an informed
decision about an application for an
approval. Additionally, it will make it
clear up front to applicants what is
required to make an application.
Potential anti-competitive impact
The amendment will impose additional
requirements on businesses such as
funeral directors
(b) copies of all legal documents
pertaining to any proposed
disturbance of human remains; and
(c) signed consent of the person or
entity who will undertake the work;
and
(d) signed consent of the executor of
the will, or the next of kin, of the
deceased person whose remains are
to be disturbed.
Public Interest Review – Amendments to Local Laws
9
Draft Amendment Subordinate Local Law No. 1 (Miscellaneous) 2016
Subordinate
Local Law
Current Status
Proposed Change
Reason for change
Potential anti-competitive impact
Subordinate Local
Law No. 4 (Local
Government
Controlled Areas,
Facilities,
Infrastructure and
Roads) 2011
Abseiling on local
government
controlled areas
and roads currently
requires an
approval under
Local Law No.1 but
is not restricted in
Local Law No.4
Include abseiling as a restricted
activity which will only be allowed
where the local government erects a
sign authorising abseiling or where the
activity is part of an approval issued
under Subordinate Local Law No.1
(e.g. part of an approval for a
temporary entertainment event)
Rather than requiring approvals for
abseiling on local government
controlled areas and roads under
Local Law No.1, the amendment will
prohibit abseiling in all local
government controlled areas and
roads unless the local government
erects a sign authorising the activity or
where it is approved under another
local law approval. This change will
ensure that this activity only occurs on
sites that are acceptable in terms of
safety and have the supporting
infrastructure to protect any
associated environmental values.
Amendment may limit the ability of
adventure businesses to apply for an
approval to conduct abseiling in some
areas
Rock climbing is
currently not listed
as a prescribed
activity or regulated
under council’s
local laws
Include “rock climbing” as a restricted
activity which will only be allowed
where the local government erects a
sign authorising rock climbing or
where the activity is part of an
approval issued under Subordinate
Local Law No.1 (e.g. part of an
approval for a temporary
entertainment event)
The amendment will prohibit rock
climbing in all local government
controlled areas and roads unless the
local government erects a sign
authorising the activity or where it is
approved under another local law
approval. This change will ensure that
this activity only occurs on sites that
are acceptable in terms of safety and
have the supporting infrastructure to
protect any associated environmental
values.
ACP because it may limit the ability of
adventure businesses to apply for an
approval to conduct rock climbing in
some areas
Schedule 2 Restricted
activities for local
government
controlled areas,
facilities,
infrastructure or
roads
Subordinate Local
Law No. 4 (Local
Government
Controlled Areas,
Facilities,
Infrastructure and
Roads) 2011
Schedule 2 Restricted
activities for local
government
controlled areas,
facilities,
infrastructure or
roads
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