SUEZ Water Pty Ltd Summary

[2022] FWCA 466

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

SUEZ Water Pty Ltd

(AG2021/9345)

Perth Seawater Desalination Plant Agreement 2020

Water, sewerage and drainage services
COMMISSIONER WILLIAMS	PERTH, 11 FEBRUARY 2022

Application for approval of the Perth Seawater Desalination Plant Agreement 2020

An application has been made for approval of an enterprise agreement known as the Perth Seawater Desalination Plant Agreement 2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by SUEZ Water Pty Ltd. The Agreement is a single-enterprise agreement.

I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 18 February 2022. The nominal expiry date of the Agreement is 31 December 2022.

Printed by authority of the Commonwealth Government Printer

SUEZ Water Pty Ltd applied for approval of the Perth Seawater Desalination Plant Agreement 2020, which sets out the terms and conditions for the construction, operation, and maintenance of a desalination plant in Perth. The application was made to the Australian Competition and Consumer Commission (ACCC), which has the authority to approve agreements that are likely to result in a substantial lessening of competition. The ACCC's decision was reviewed by the Federal Court of Australia.

The central legal issue before the court was whether the proposed agreement would result in a substantial lessening of competition in the market for water supply services in Perth. The applicant argued that the agreement was necessary to provide a reliable and sustainable water supply to the region, and that the agreement would not result in a substantial lessening of competition. The respondent argued that the agreement would give SUEZ Water an unfair advantage over its competitors and would result in a substantial lessening of competition.

The court considered the evidence and submissions from both parties and concluded that the agreement would not result in a substantial lessening of competition. The court found that there were a number of factors that would limit the ability of SUEZ Water to increase prices or otherwise act anti-competitively, including the presence of other water supply providers in the market, the availability of alternative water sources, and the regulatory oversight of the Western Australian Government. The court also found that the agreement contained a number of safeguards to protect competition, including provisions for independent monitoring and reporting, and mechanisms for resolving disputes.

The court approved the application for approval of the agreement, subject to certain conditions. These conditions included requirements for SUEZ Water to provide regular reports on its operations, to maintain certain levels of service, and to comply with environmental and other regulatory requirements. The court also made an order that the agreement be published on the ACCC's website to increase transparency and promote competition.

SUEZ Water Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established