You will be aware of the Premier's Memorandum 1989-70 of December, 1989 directing that all air travel bookings be made with Traveland. This direction remains in place.

A major factor in the decision to "contract out" the Government's air bookings to Traveland was the saving available to individual Departments and Authorities by using this company. A particular saving available to all using the service is a 1% rebate on invoiced cost for timely payment of the Traveland statement. The time period allowed for payment is effectively, no shorter than normal commercial credit arrangements. The details of the arrangements for the rebate are contained in the enclosed Traveland manual.

It is therefore disappointing to learn from Traveland that a large number of Departments and Authorities are not paying their accounts in time to take advantage of the negotiated rebate. The Premier wishes Ministers to ensure that organisations In their portfolios give due attention to the payment of their air travel accounts so that the maximum rebates are obtained.

Deregulation of the interstate domestic air fares and intense competition amongst international airlines has created opportunities for more savings on air travel bookings. The professional staff of Traveland are ideally qualified to obtain maximum advantage for the Government from this increased competition. A key ingredient in the agreement between the NSW Government and Traveland is that Traveland will. in all cases, offer and provide the most economical air fare for the journey requested.

Because of the variety of terms, conditions and restrictions applicable to each fare t~pe available, the decision on the most cost effective fare can only be made by the traveller and his/her employer. To this end Traveland have been asked to provide all reasonable options for air fare types to meet an itinerary specified when State organisations Inquire about individual's travel proposals. Accordingly, if there is scope for flexible travel times, duration etc, Traveland. should be advised. Small but acceptable adjustments to optimum arrangements could result in significant cost savings.

The overall service offered by Traveland has been Improved and refined to meet the individual needs of the Government. The enclosed procedures manual has been prepared by Traveland to assist official staff to obtain maximum benefit from Traveland's services and is being distributed by Traveland to all departments and authorities. Additional copies may be obtained by contacting Traveland Government Travel on (02) 552 9222.

Regional Air Services

Representations have been received from Intrastate regional airline operators expressing concerns at the viability of maintaining existing scheduled services to many airports in country NSW. They have questioned whether State Government agencies are adequately examining the economics of utilising regional air services with the consequent savings In time and other costs compared to road travel.

The intrastate airline services provide important links between centres in the State. and It is desirable that they be preserved where possible. Public Sector managers are therefore asked to carefully consider the total indirect as well as direct costs involved when selecting modes of intrastate travel.

RG Humphry
Director-General