Pärnu City has voiced its opposition to a proposed legislative change by the Estonian Riigikogu's Environmental Committee aimed at banning internal contracts for waste management services. This change would revoke the right of municipalities to procure waste collection services directly from their own companies, a practice that is currently allowed under the law. The city of Pärnu, which utilizes this option for waste collection through its wholly owned company, the Paikre Waste Management Center, argues that the proposal could undermine local governance and operational efficiency.

The rationale behind the proposed ban, as articulated by Environmental Committee Chair Yoko Alender, is to ensure fair competition among all waste management service providers, including those owned by local governments. This would entail a shift towards competitive tendering processes that would introduce checks on pricing and service quality. However, many municipalities, including Pärnu, maintain that internal contracts allow for more control over waste management and costs, which may be jeopardized if competitive bidding becomes the norm.

Approximately ten municipalities currently engage in internal contracts for waste management, with Pärnu being a significant player in this group. As the proposed legislation moves forward, local governments are likely to voice further concerns regarding its implications for municipal control over essential services and the potential impact on waste collection efficiency and local economies.