Khir Toyo did the right thing,this time.

The Sun reports today that the Selangor State Government has overruled the decision by MPSJ and MPS to award a multi-million ringgit pest concession to a consortium of companies and force businesses to use their services.

DAP Selangor has earlier urged the Selangor MB to intervene in order to safeguard the principle of keeping a free and fair market without granting monopoly rights to a single company or consortium in the state.

We have aslo wanted him to withdraw the monopoly rights given to certain companies on billboards, extraction of sands and collection of scrapped metals in the state.

Here's the story from the Sun...

Selangor cancels pest control concessions

Maria J. Dass

SHAH ALAM: The Selangor government today (Sept 6, 2006) overruled the decision by two local authorities to award a multi-million ringgit pest control concession to a consortium of companies and to force businesses to use their services.

Speaking after chairing the state executive council meeting today, Mentri Besar Datuk Seri Dr Mohd Khir Toyo said: "There will be no consortium, we have agreed already."

He was referring to the Subang Jaya Municipal Council (MPSJ) and Sepang Muncipal Council's (MPS) awarding concession to consortiums to carry out pest control operations in their municipalities.

All companies were required to use their services before they could renew business licences. This arrangement, dated back to July in the case of the MPSJ and even earlier for the MPS.

theSun had earlier reported that most of the companies in the consortium were not even registered with the Pesticides Board. Some of the companies, which were RM2 set-ups, also shared common directors.

It was also stated that the local governments have no business dictating what pest-control companies businesses must use.

Asked about the MPSJ board decision on Aug 30, 2006, to award a 20-year pest control concession to Konsortium SJ Pest Control Sdn Bhd, Mohd Khir said no agreement had been made yet to seal this arrangement.

In any case, he said, the state has decided to stop it.

Asked whether those who had engaged the services of the consortium would be refunded, he said: "That's up to the company, it's beyond the state's decision.

"
Today's exco meeting also decided:

that all licensed pest control companies be allowed to offer their services to food and beverage outlets in the municipalities, provided they are registered with the respective local authority's pest control panel and are licensed;

only food outlets are required to fumigate their premises as provided for under the Pesticides Act 1974 (amended in 2004). Those which do not deal with food and beverages are exempted.
(The earlier decision by MPSJ forced all companies, including non-food outlets, to fumigate their premises from 2009).

there will no longer be control on pricing for the services as was done earlier. The earlier annual rates ranged from RM600 to RM1,000, depending on floor space.

Khir said pest control companies which do not follow the regulations will be penalised and dropped from the local authority's panel.