The Government is taking action to reduce the cost of public expenditure on air travel on official business.

This Memorandum revises the Government’s air travel policy to require that the “lowest logical fare of the day” be used for all domestic flights and makes other significant changes in the policy.

The following is a summary of the key changes:

• All domestic and international travel bookings are to be made through the NSW Government’s appointed Travel Management Company. (Further information can be obtained from the Department of Commerce at www.nswbuy.com.au)
• The “lowest logical fare of the day” is to be used for all domestic flights. This means the cheapest fare available meeting the traveller’s logistical needs.
• In line with the “lowest logical fare of the day”, public officials may only specify destination, date and nominated time of the required travel; and not specify airlines. The Travel Management Company will allocate tickets within 20 minutes either side of the nominated time of travel on the most appropriate airline.
• Senior officials may now only fly business class to Western Australia and the Northern Territory.

Further details are provided in the attached Policy on Official Travel within Australia and Overseas.

This Memorandum applies to all agencies and employees in the Government Service (Public Service Departments, Non-Public Service Divisions and Special Employment Divisions), the Teaching Service, NSW Police and the NSW Health Service.

The Treasurer will write separately to State Owned Corporations and Public Trading Enterprises concerning adoption of the provisions in this Memorandum.

Nathan Rees MP
Premier