Since 1st July, 1990 there has been a 32% increase in the contract price of petrol. It is estimated that this increase represents an additional cost of over $5 million per annum for the Government sedan and station sedan fleet.

In the current very tight budgetary conditions, no supplementary funding to Departmental budgets will be possible from Treasury to take account of the increases in fuel prices. Increased fuel costs will need to be absorbed by appropriate managerial measures in each organisation.

Accordingly, it is even more important now that all organisations have in place procedures to closely scrutinise fleet operations and utilization which will allow managment to make the correct decisions on the optimum mix of vehicles of the appropriate size to meet the particular needs of each organisation.

The Minister for Administrative Services will be advising me on the development of any additional measures which might enhance the economic management of the Government motor vehicle fleet.

Your co-operation in bringing this matter to the attention of all Departments and Authorities within your administration would be appreciated.

Nick Greiner MP

Branch: DGU
Date: 31st Oct 1990