Auckland Council is being slammed for planning to start a commercial waste service in competition with the private sector.

The proposal is in the Draft Auckland Waste Minimisation Plan 2018.

Auckland Chamber of Commerce Chief executive Michael Barnett says it creates a clear conflict of interest for the Council with its regulatory role to ensure private companies comply with Council’s rules.

He says the only good reason for council to provide the service if there's market failure.

"There is no market failure, but in their plan they are saying their intention is to set up and go into competition with the private sector using ratepayers money."

He says the proposal is "fundamentally wrong" and there is good reason why it should be challenged.