At its March meeting, Greater Shepparton City Council considered a recommendation that ASX-listed company Cleanaway be awarded a contract for the handling and disposal of kerbside bin collection for a period of seven and a half years with an option to extend for a further seven and a half years.
The contract is part of more than $75 million worth of waste handling contracts being considered by council.
Councillors voted down the motion and instead deferred making a decision until on or before April 17, for councillors to be provided with more information.
Russell Pell is a major dairy farmer in the Undera region, a long-term community leader in river catchment and dairy matters.
He says, in his experience, it is usually better to go with a local company over a larger enterprise.
“Locals are usually better at providing good service,” he said.
“It’s no good buying something if you haven’t got good service.”
Mr Pell said awarding the contract to a large company, such as Cleanaway, ahead of a local firm, would have long-term, negative impacts.
“There’s a whole lot of incidences that show you need competition to keep you on your toes, otherwise you get fat and lazy, don’t you?” he said.
“Look, I see them (Cleanaway) like the big dairy industry, the big Murray Goulburn if you like, that sooner or later, they’re just going to do enough to get the job done and grab the money.”
Mr Pell believes the value of hiring local companies should be gauged by more than just a price differential.
“The tender process is always one that I reckon you need wise heads around because you can easily fall down that trap, and there’s even mechanisms there that even put you down that trap to take the lowest bid, even though in the back of your mind you know it’s not the best bid,” he said.
“I haven’t seen all the tendering process, but I do know what local businesses mean to local areas and I certainly support local business.
“It’s in your own interests to look after your local area.
“I’m hoping that the council’s wise enough, especially now that they’ve had a chance to really think, to ask what’s the greater good?”
