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Thursday, 23 March 1972
Page: 860

Senator Douglas McClelland (NEW SOUTH WALES) asked the Minister representing the Minis ter for Supply, upon notice:

(1)   Did the Minister issue a press statement on 4 January 1972 indicating that contracts approved for the supply of turbine fuel for the Australian Armed Forces and the Departments of Supply and Civil Aviation were with Mobil Oil Australia Ltd. ($10,631,00), B.P. Australia Ltd. ($14,162,000), Golden Fleece Petroleum ($36,147,000) and the Shell Company of Australia Ltd ($22,513,000).

(2)   Were the contracts let on a price per gallon basis; if so, was there any difference in the price tendered between any of the companies; if not, on what basis were the tenders called and contracts let.

Senator Sir KENNETH ANDERSON - The Minister for Supply has provided the following reply to the honourable senator's question:

(1)   Yes.

(2)   The contracts were placed at prices per imperial gallon for each type and grade of turbine fuel required, delivered to various locations in Australia and its Territories.

Following invitation of tenders extended to all Australian companies considered capable of fulfilling the Commonwealth's requirements, contracts were arranged with the lowest, lower, or only, suitable tenderer for each requirement at each location.

There were substantial differences in the prices tendered by competing companies. The degree of effective competition between the tenders varied from place to place and from item to item, depending mainly on the distance between each tenderer's supply sources (refinery) and the location at which the Commonwealth required supplies.

The prices accepted were all subject to variation in respect of movements in market prices of raw materials, freight rates, exchange rates, etc.

The contracts are all of the period variety in which the Commonwealth does not commit itself to ordering any particular quantity but only such quantities as may be required from time to time by several user departments.

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