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Tuesday, 17 February 1987
Page: 71

(Question No. 4768)

Mr MacKellar asked the Minister for Aviation, upon notice, on 15 October 1986:

(1) At which Australian airports are inward duty free facilities to be established.

(2) When will or did each of these facilities begin operation.

(3) What is the business name of the inward duty free operator at each location.

(4) Did the Government call tenders, or does it intend to call tenders, to select the successful inward duty free operator at each location; if not, what criteria are being used to select the successful operators.

(5) Is there any commonality of ownership between operators already selected for inward duty free facilities, and the operators of existing outward duty free facilities; if so, what.

(6) Does the contractual arrangement between each inward duty free operator and the Commonwealth incorporate any guidelines or requirements on the pricing policy to be adopted by the contractee.

Mr Peter Morris —The answer to the honourable member's question is as follows:

(1), (2) and (3):

Sydney (KS), 1 May 1986, Allders International Pty Ltd

Melbourne, 1 May 1986, James Richardson Pty Ltd

Brisbane, 1 May 1986, James Richardson Pty Ltd

Adelaide, 1 May 1986, Taralba Pty Ltd

Perth, 1 May 1986, Allders International Pty Ltd

Darwin, 1 May 1986, Edamport Enterprises Pty Ltd

Townsville, 1 May 1986, Michael J. Reynolds

Hobart, 1 May 1986, Taralba Pty Ltd

Port Hedland, Cairns, These airports are controlled by local authorities under the Aerodrome Local Ownership Plan and my Department is not privy to the business dealings of those authorities.

(4) My Department did not call public tenders. However, as each concession contract expires after 1 May 1986 public tenders will be called to operate a combined inward and outward duty free concession.

The reasons for not calling public tenders were

(a) when inwards duty free was introduced current operators were mid term in their contracts which were won in open competition, following public invitation of tenders

(b) benefits should flow to consumers from economies of scale associated with the pooling of existing bond store arrangements, staffing facilities, administration, purchasing and marketing arrangements

(c) there were practical problems with providing additional administrative and bond store areas that would be required by a second operator.

(5) Yes. Both inward and outward duty free concession at each international airport are operated by the same concessionaire for the reasons outlined in answer 4.

(6) As a consequence of (4) above, the inward duty free concessionaire is bound by the same conditions relating to pricing as stated in the lease and authority agreement for the outward duty free contract.