QUESTION No. 574

Senator Ludlam: To ask the Minister representing the Minister for Defence-

(1) Does the department have a policy which prohibits the acceptance of gifts from suppliers or potential suppliers at any time or only during a tendering process or contract negotiation.
(2) If the policy only applies during a tendering process or contract negotiation, could this lead to the inappropriate strengthening of relationships and improper influence over decision-making processes, even if a contract is not being sought or negotiated at that specific time.
(3) Does the department's policy specifically prohibit the acceptance of gifts at any time, or only the soliciting of gifts

Senator Evans - The Minister for Defence has provided the following answer to the honourable senator's question:

(1) Defence's policy on acceptance of gifts is of general application and is not restricted to tender processes or contract negotiations. However, the policy does state that acceptance of gifts or benefits will not be appropriate from a person or company if they are involved in a tender process with the agency, either for the procurement of goods and services or sale of assets.

(2) See the answer to question 1

(3) Defence's policy deals with the acceptance of gifts and solicitation of gifts. There is no tolerance for the solicitation of gifts. By contrast, gifts may be accepted by officials in certain limited circumstances, but only where it is appropriate and justifiable to do so.