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Wednesday, 1 December 1976
Page: 3087


Mr Scholes asked the Minister for Defence, upon notice:

(   1 ) What contracts for the supply of materials and equipment to the Defence Services have been placed outside Australia during 1976.

(2)   Are there any terms of supply in the tender conditions which would ensure that preference is given to Australian sources of supply.

(   3 ) Which contracts let overseas were for goods previously supplied from Australian sources.


Mr Killen - The answer to the honourable member's question is as follows:

(   1 ) During the first nine months of 1976 some thousands of orders were placed overseas under Co-operative Logistics Agreements and, in addition, more than 8000 contracts were placed overseas commercially.

(2)   Where there is a reasonable expectation that Australian goods may be available, suitable quotes are obtained by the Services or tenders are invited by the Department of Administrative Services if the value exceeds $1,000. Where orders are placed directly overseas there are no terms in the tender conditions for the supply of these items which would ensure preference is given to Australian sources of supply, except for the offset provisions in major purchases.

(3)   The history of previous suppliers is maintained on an individual item basis and it would be impossible to obtain the information you have requested without a very large manpower effort on the part of all three Services. I am not prepared to authorise that effort, particularly as our purchasing policy is geared to arranging contracts outside Australia without opportunity for Australian industry to tender only when items are not expected to be available from Australian sources to meet Service requirements. Accordingly, it is most improbable that there would prove to be any significant incidence of contracts placed outside Australia for items previously supplied from Australian sources.







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