Page 125 - Week 01 - Tuesday, 22 February 1994
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Mr Connolly - the answer to the Member's question is as follows:
1.) I am advised that there has been compliance with environmental requirements by both Burmah Fuels Australia Limited and the Government in the granting of the site licensed to Burmah Fuels.
2.) I am advised that there has been compliance with planning requirements by
both Burmah Fuels and the Government in the granting of the site licensed to Burmah
Fuels.
3.) The licence was granted under section 217 of the Land (Planning and Environment)
Act 1991. There is no requirement for the Government to conduct a tender in such
circumstances. Burmah Fuels made a proposal to the Government and the licence was
granted in accordance with normal commercial practice.
4.) As part of the normal process of entering into a commercial arrangement with an incorporated entity, a search was conducted of the ownership of Burmah Fuels Australia Limited, Burmah Oil Australia Limited and Burmah Oil Investments (Australia) Pty Ltd.
5.) 1 am advised that Burmah Castrol plc is a United Kingdom based company
which is the ultimate holding company of Burmah Fuels Australia Limited. I am not
aware of any Australian based company by the name of Burmah Castrol. Further, I am
advised that, according to the latest available Annual Report of Burmah Castrol plc,
there are three groups that hold substantial interests in the ordinary share capital in that
company; they are: B.A.T. Industries plc, Morgan Grenfell Group plc and Railway
Pension Funds.
6.)(a) I do not understand what you mean by "bona fides" of the company. However, I was advised by the Chair of the ACT Government Working Group on Petrol Prices that Burmah Fuels' Australian operations had been examined and that Burmah Fuels had a demonstrated record of discounting in the Sydney and Melbourne markets.
(b) It was recommended to me that Burmah Fuels was suitable for entry into the ACT market as regards its Kingston site proposal.
(c) No concerns were expressed about the lack of independence from existing major operators but I was advised that Burmah Fuels has a contract with Shell Australia for the supply of petrol.
7.) The Kingston site was not sold but rented to Burmah Fuels as a going concern on
a tenancy basis. I am advised that the minimum rental for the site was determined by
the Australian Valuation Office. The valuation took into consideration the size and
location of the site, the restricted nature of the licence agreement, the limited potential
for sale of ancillary products and related to an estimated sales volume. In the event that
the sales volume exceeds expectations, the Government will share in such an increase by
way of increased rental. I am further advised that, in accordance with the advice from
the Australian Valuation Office, an allowance was made in the rental valuation for
improvements to the site made by Burmah Fuels which were the responsibility of the
ACT Government as landlord.
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