OFT Calls for More Competition in Municipal Waste

This initiative is part of the Kelly Action Plan, a Government initiative aimed at improving competition in procurement and, in particular, increasing competition and long term planning in markets where the Government possesses significant purchasing power.

The OFT considers that competitive markets are vital to the delivery of Defra's objectives to ensure the diversion of MSW from landfill and to help local authorities deliver around £300 million worth of efficiency gains in waste services.

The OGC report concluded that competition within the MSW sector was limited because there were too few suppliers in the market, there was an over-reliance on regional presence to succeed with bids, and the lack of a systematic and clear procurement policy amongst procuring authorities. It recommends a more centralised approach to procurement with greater co-ordination between local and central government, standardised procurement procedures and centralised monitoring of contracts. It also