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ADI could learn from ASTA's example-Durack



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MEDIA RELEASE

SENATOR PETER DURACK, QC Deputy Leader of the Opposition in the Senate

Shadow Minister for Defence

THE SENATE

ADI COULD T.EARN FROM ASTA's EXAMPLE — DURACK .

The Shadow Minister for Defence, Senator Peter Durack, today welcomed the announcement that Aerospace Technologies of Australia.(ASTA) had obtained a long-term refurbishment contract with British Airways and had sold an interest to a widely

respected aerospace company.

Such a move should strengthen the international competitiveness of ASTA.

This development should also enhance ASTA's ability to undertake further competitive tendering for repair and maintenance work currently done in-house by the Royal Australian Air Force.

Senator Durack said that the other corporatised Commonwealth owned defence factories, Australian Defence Industries (ADI), should be given the opportunity to explore such arrangements with the private sector.

The Department of Defence's recently signed contract with ADI which gives Garden Island Dockyard five years of guaranteed maintenance and refit work without going to open tender is a backward step.

The aim should be to make Garden Island compete with private industry, not shelter them from it.

The five year contract is supposed to allow the Garden Island facility to make a transition to open tendering. But it is

difficult to see how insulating the dockyard from competition encourages this change.

(ends)

March 13, 1991 (14)

More Information: Peter Jennings (06) 277 37252

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