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Thursday, 18 October 1973
Page: 2395

Mr Wilson (STURT, SOUTH AUSTRALIA) asked the Minister for Defence, upon notice:

(1)   How many tenders were received for the construction of the new oceanographic ship?

(2)   From whom were the tenders received?

(3)   What were the tender prices submitted by the tenderers?

(4)   How much is it estimated it will cost to have the oceanographic ship constructed at the Williamstown Naval Dockyard upon a truly comparable basis of calculation?

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

(1)   Four.

(2)   Tenders were received from -

a.   Carrington Slipways Pty Ltd.

b.   Newcastle State Dockyard.

c.   Walkers Limited.

d.   Vickers Cockatoo Dockyard Pty Limited.

(3)   It is normal practice in the Government tender system for general supplies for only the successful tender price to be announced, the remaining offers being regarded as Commercial in Confidence. In respect of tenders for ship construction within the subsidy scheme prices are not revealed to anyone but the owner. The Government has decided that the vessel is to be built at Williamstown Naval Dockyard and this was announced in the Defence Statement presented to the House on 22 August 1973. In these circumstances, all tender prices should remain Commercial in Confidence but it will suffice to say that they ranged from $7m to over$11m at April 1973 level of prices.

(4)   The estimated cost to the Government for shipbuilder's work on the oceanographic ship at the Williamstown Naval Dockyard is$8m at April 1973 level of prices. This is not a 'truly comparable basis of calculation' as profit is not a consideration in a naval dockyard and no allowance is made in the estimate for the continuing commitment for running expenses of the Dockyard which would be, in general, the same with or without this work.

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