Mr Latham asked the Minister for Defence Industry, Science and Personnel, upon notice, on 2 December 1997:

(1) Does a memorandum of understanding exist between the federal Government and the National Association of Testing Authorities (NATA); if so, what are its terms.

(2) Does the Australian Defence Industries laboratory meet the standards set out in the memorandum; if not, (a) what measures exist to enable the laboratory to meet the standards and (b) within what time frame will they be undertaken.

(3) What measures exist to ensure that all organisations providing laboratory services to the federal Government conform to the terms of the memorandum of understanding.

Mrs Bishop (Defence Industry, Science and Personnel) —The answer to the honourable member's question is as follows:

(1) A memorandum of understanding has existed between the Commonwealth of Australia and the National Association of Testing Authorities, Australia (NATA) since 28 July 1988. Under the memorandum, the Commonwealth recognises NATA's important role in testing, standards, certification, accreditation and total quality management, and agrees to promote an appropriate infrastructure, including accreditation, which is internationally recognised in testing and measurement. The memorandum of understanding has recently been renegotiated, and is currently awaiting final consideration by the Minister for Industry, Science and Tourism and NATA.

(2) (a) and (b)

ADI is a separate corporate entity, which has an independent board of directors responsible for day-to-day management of the company. The shareholder is not privy to details of the Company's day-to-day commercial business. As a general rule, however, NATA accreditation would be applied by ADI when it is necessary by contract unless a waiver of the requirement is agreed by ADI and the client.

(3) As agreed under the memorandum of understanding, the Commonwealth would normally specify the use of NATA accredited laboratories for testing required to demonstrate compliance with laws, technical specifications, regulations, purchasing and similar instruments. In such cases, it will incorporate use of NATA accredited laboratories and encourage State governments and other government bodies to do likewise. The Department of Defence reflects these requirements in contractual terms and conditions, and in its policies for the conduct of Test and Evaluation, Calibration and Quality Assurance.