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Wednesday, 9 October 1991
Page: 1636

(Question No. 1058)

Mrs Gallus asked the Minister for Defence Science and Personnel representing the Minister for Defence, upon notice, on 9 September 1991:

(1) What were the gross costs of (a) aircraft, (b) maintenance, (c) crew and (d) other undertakings associated with the use of RAAF facilities in providing domestic air services during the airline pilots' dispute in 1989.

(2) Were any of the costs referred to in part (1) debited to (a) Ansett Airlines and its subsidiaries and (b) Australian Airlines and its subsidiaries; if so, what costs.

(3) Have any operating costs to the RAAF been recovered by the Government; if not, why not.

Mr Bilney —-The Minister for Defence has provided the following answer to the honourable member's question:

(1) In recognition of the public service the ADF was providing, the Government decided that the airlines would not be charged any of the ADF's fixed costs (such as salaries, capital depreciation and overheads) which would be incurred in any event. The airlines were to directly meet the cost of fuel and RAAF/RAN incidental costs. Additionally, the airlines were to be charged for contractor maintenance and aircraft spares as follows:

B707--$1500 per hour

C130--$970 per hour

HS748--$800 per hour

In some circumstances, incidental and fuel costs were borne by Defence and recovered from the airlines.

The total cost of hours flown at the above rates plus recovery of fuel and incidentals provided by RAAF/RAN was $12,342,407.29.

(2) Debit Notes to the total of the above amount were issued to the `Joint Airlines Group' which represented the major airlines.

(3) All debit notes were paid in full.