See report 'Systemic Investigation into Fuel Contamination'.
The Australian Transport Safety Bureau recommends that the
Department of the Treasury review its relationship with other
regulatory bodies to clarify the limits of their respective
regulatory powers and responsibilities with respect to aviation
fuels, to ensure that aviation safety issues are effectively
regulated.
AUSTRALIAN TRANSPORT SAFETY BUREAU INVESTIGATION INTO
CONTAMINATED AVIATION GASOLINE
Thank you for your letter of 14 April 2002 concerning the
recommendations contained in the Australian Transport Safety Bureau
(ATSB) report, Systemic Investigation into Fuel Contamination. I
recall discussions and email exchanges with ATSB in respect of the
recommendation. Nevertheless, our response is repeated below.
Under section 65R of the Trade Practices Act 1974 suppliers
conducting voluntary recalls are required to notify the Minister
responsible for consumer affairs within two days of taking recall
action. Treasury enters the voluntary recall information on the
Product Recalls Australia web site and monitors the effectiveness
of the recall action. The contaminated aviation fuel which was the
subject of the ATSB report was voluntarily recalled by BP Australia
limited on 24 December 1999 and Mobil Oil Australia Limited on 30
December 1999. Periodic reports were received and the recall action
for both was closed on 14 April 2000.
The ATSB report A TSB Systemic Investigation into Fuel
Contamination determined that "the contaminated fuel was
successfully tracked and recalled". The report also concluded "The
quarantine and recall processes following the contamination event
............ were effective".
The Trade Practices Act provides the responsible Minister with
powers to ban, warn, set standards or order recalls of goods which
could arguably include, for example, aviation fuel. However
Treasury does not have the resources or particular expertise to
monitor product safety matters within the aviation sector. If it
was appropriate or necessary to consider using the Trade Practices
Act powers in relation to aviation products we would expect such a
request to originate from your Department and progress through your
Minister to the Minister responsible for consumer affairs
(currently the Parliamentary Secretary to the Treasurer, [name
provided]).
This Division already liaises as necessary with officers of
ATSB/DOTARS on relevant product safety issues. Accordingly, we
consider recommendation R20010017 to have already been
appropriately implemented. Naturally, however, we would continue to
welcome any suggestions you may have which might benefit the
ongoing relationship of the various agencies with interests in
product safety issues
