Cabinet has approved of the Commercial Services Group calling tenders for a contract providing for the delivery of air travel and air reservation services to NSW public sector organisations in a manner which while providing maximum flexibility for public sector bodies to obtain suitable air travel arrangements, will at the same time maximise the purchasing advantage of the State based on its aggregate purchases of travel services.

It is intended that the new contract will be in place from 1st January 1994. Until then the existing arrangement with Traveland will continue.

The conditions applying to the provision of the service by Traveland are the same as outlined in my previous memorandum and are repeated for information:

1. Traveland will make all reservations on the "best fare of the day" basis with travellers being free to choose their own carrier.
2. Monthly air savings reports will be issued to all departments and authorities detailing all travel undertaken, the fare paid, and the lowest fare for that day, showing the actual savings obtained or foregone.
3. The discount for domestic travel is 2% deducted from the invoice at point of sale.
4. For international travel the discount will be 5% deducted from invoice at the point of sale.

R G Humphry
Director-General