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Toll transport new owners of Removals Australia

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Minister for Finance and Administration The Hon John Fahey MP

Minister Assisting the Minister for Defence The Hon Bruce Scott MP


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The Minister for Finance and Administration and the Minister Assisting the Minister for Defence announced today that the Commonwealth and Toll Transport Pty Ltd had executed a contract for the sale of Removals Australia.

Removals Australia is a business unit within the Department of Finance and Administration and is a relocations brokerage business servicing government.

A key objective of the sale process has been to maintain the standard of service provided to customers including Australian Defence Force personnel and their families.

The negotiated price for the business is $10.4 million. The Government is delighted with the result. The competitive tendering process ensured the best possible return for taxpayers was achieved.

Alongside the sale process the Department of Defence has also extended their service agreement with the new owners of Removals Australia until June 2005.

The sale to Toll Transport Pty Ltd, part of a leading Australian transport and logistics company, is a great opportunity for innovative service enhancements to be developed for the Department of Defence and other important customers.

Toll Transport will take over the business after a two-month transition period on 31 January 2000.

The Removals sale process has been managed by the Office of Asset Sales and IT Outsourcing, assisted by business advisers Arthur Andersen Corporate Finance and legal adviser Australian Government Solicitor.

Canberra Tuesday, December 07, 1999

Media contacts: Office of John Fahey : Andrew Maiden 02 6277 7400 Office of Bruce Scott : Michael Shoebridge : 0416 266 962

The Sale of Removals Australia

Media Backgrounder

• Removals Australia is a business unit within the Business Services Group of the Department of Finance and Administration.

• It is a relocations and removals brokerage business servicing government.

• Removals Australia was created in 1990 as part of the former Department of Administrative Services. It has been successfully servicing a large and diverse customer base since this time.

• Removals has approximately 60 permanent staff and about 50 temporary contract staff.

• It has offices in all capital cities and in Townsville (Qld), Tindal (NT), and Riverina (NSW)..

• Removals Australia adopts a strategic approach to the procurement and management of removals, contracting the relocation of government agency staff and their workplaces anywhere in Australia or overseas.

• Removals operates in a competitive environment with untied clients.

• Removals serves more than 100 customer organisations. Its largest client is the Department of Defence.

• Removals uses private sector providers, specialising in removals and relocations, to service its customers.

• More than 120 companies, of all sizes and in various locations across Australia, are on Removals list of providers.

• In 1998-99, Removals Australia returned an operating profit of $3.8 million, and achieved an annual turnover of $98 million.

• Its key strategy since 1998-99 has been to maintain its financial performance and position itself for a competitive future through reorganisation on a number of fronts. To achieve its strategy, Removals Australia:

• restructured to improve profitability and adaptability; • reviewed its contractual arrangements and developed stronger partnerships with major clients; and • redeveloped its Removals Management System to better meet its current

business needs.

• Removals Australia has a Memorandum of Understanding, with its largest customer, the Department of Defence. The term of the service agreement has now been extended from 2002 up to the year 2005. Recent service agreements have also been finalised with three other important customers: the Department of Foreign Affairs and Trade, Centrelink, and AusAID.

• Arthur Andersen Corporate Finance was engaged in December 1998 to conduct a review of the future of Removals Australia, to determine the best option for divestment.

• The decision to sell Removals Australia formed part of the Federal Budget for 1999-2000 and was announced on 27 April 1999.

• The business was advertised for sale on 24 June 1999. A competitive tender process was conducted to select the preferred purchaser.

In the 1999-2000 Budget the Federal Government extended the Green Corps program for an additional four years. The $88.8 million investment will provide 6,800 new places for trainees from around Australia aged between 17 and 20 years.

To nominate a project for Green Corps or to apply for a place, call the Australian Trust for Conservation Volunteers on 1800 633 844 or visit the website at ·

For further information please contact: Nicole Johnston, Dr Stone’s Office, 02 6277 2016 or 0419 219 415 Sasha Pendal, Ms Worth’s Office, 02 6277 4337 or 0412 544 203 7 December 1999