IN THE TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984

This application by the Tasmanian Public Service Association (TPSA) seeks to vary the kilometreage rates specified in subparagraphs 2.1 and 2.2 of sub-clause 4N of the Award, in accordance with the procedure outlined in sub-paragraph 2.4 of that sub-clause.

Sub-paragraph 2.4 reflects totally the decision of the Commission in T.33 of 1985 regarding the variation of specific kilometreage rates.

As this is the first application made to vary the kilometreage rates in accordance with the manner specified in sub-paragraph 2.4, it is appropriate to document the relevant calculations herein which lead to the granting of the variations sought. The calculations which follow are an application of the formula specified in decision T. 33 of 1985.

By using the Hobart Transportation, Private Motoring Sub-group CPI Index number for the quarter ending 30 September 1985 (155.2) and the March 1980 base index number (90.9), the outcome is an index increase of 70.74% from March 1980.

Applying the 70.74% increase to the base March 1980 rate of 19 cents per kilometre then results in a figure of 32.4406. It is this figure upon which subsequent calculations are based. It should not be rounded off to two decimal places at this stage, as is the case with Exhibit P1.

Adding a further 5% to 32.4406, the result is a rate of 34.06 cents per kilometre for the Required User Category, First 10,000 Kilometres, Rate A. Deducting 30% from 32.4406, the rate of 22.71 cents per kilometre is achieved for the Occasional User Category, First 10,000 Kilometres, Rate A.

The other rates in the tables in sub-paragraphs 2.1 and 2.2 are calculated (as specified in sub-paragraph 2.4) by applying the appropriate percentages to the two abovementioned calculated rates.

Both Mr. Philp, appearing for the TPSA, and Mr. McCabe, appearing for each of the respondents, agreed with the resultant rates, and the foreshadowed canplexity of applying the formula specified in decision T. 33 of 1985 was not evident.

Private Motoring Sub-Group

In passing, it is interesting to note the ABS Statistician's comments in Exhibit P.2 with regard to the movements in the Transportation Group of the CPI in the capital cities for the September 1985 quarter.

The main features relating to the private motoring sub-group were petrol price increases in all cities except Sydney; motor vehicle price increases in all cities; and motor vehicle service and repair cost increases in all cities.

More specifically, the CPI figures for the Hobart Private Motoring sub-group indicate increases for the past two quarters in all three components of that sub-group, with the Automotive Fuel component index number jumping from 152.1 to 171.8 - an increase of 12.95% for the six months period. This increase is inherently passed on by application of the formula.

Operative Date

This matter was raised by the parties in the terms stipulated in the Full Bench decision in T. 33 of 1985. The Full Bench said, inter alia (at P.12):

"The operative date for the consequential increases to be the first full pay period commencing on or after the 'availability' date."

In this instance, the ABS statistical information was available on 24 October 1985 and the Commission was advised that the first full pay period after that date commenced on 31 October 1985.

Whilst deciding on 31 October 1985 as the operative date on this occasion, I wish to indicate that it is the responsibility of the applicant to expeditiously lodge applications to vary the rates after the CPI information becomes available.

The matter of future operative dates will be the subject of future decisions. I can, however, indicate that I do not anticipate any problems with the continuation of an operative date commensurate with the beginning of the first full pay period commencing on or after the release date of the ABS CPI information, providing that the application is lodged promptly.

The parties expressed agreement with such an approach.

Principles

The increases to the specific rates of kilometreage allowance provided for in this decision are in line with the Principles of Wage Determination, and are covered by Principle 9 (a)(i), "Existing Allowances".

The order giving effect to this decision is attached.

This order also deletes the Horsepower Savings Provision for the Required User Category, which has now become redundant.

R.K. Gozzi
COMMISSIONER