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Maritime Logistics Community News : Summer 2010
51 NAVY SUPPLY NEWSLETTER SUMMER 2010 Other revenue drivers National Procurement and Supply Arrangements -- The RANCCF has worked extensively with the larger establishments to introduce a single contact national supplier network aimed at utilising economies of scale and increasing the net margin available to all canteens and messes participating in the arrangement. This initiative has provided significant savings to the participating canteens. Fleet Air Arm Museum Souvenir Shop (Nowra) -- The RANCCB has been managing the entry and souvenir shop at the Fleet Air Arm Museum. The shop stocks a large array of nautical and aviation related gifts, toys and memorabilia and proceeds from sales in the shop assist in sailor's welfare and navy sporting programs. This operation has mostly been running on a cost neutral basis but has yielded some small revenue returns. All of these businesses and initiatives are evidence that the RANCCF has a key aspiration of making a positive difference to the Service life of all sailors. Where does the money go? Grants Proceeds from the revenue activities of the RANCCF are distributed to Navy personnel in the form of cash payments to ships/boats/crews requesting grants, Inter Command Sports Challenges, Welfare Fund activities, Navy Sport and the RAN Relief Trust Fund. Revenue from levies and other RANCCF business activities over the past financial year have enabled the RANCCB to provide the following grants: • RAN Sports Council -- $289, 000 has been provided to various sports clubs. • RAN Relief Trust Fund -- the RANCCF has donated $129, 000 to the RTF and assisted with $600,000 in Christmas loans. The following table reflects the grants and distributions made by the RANCCF against the total levy income from all ships and establishments: FY07 FY08 FY09 FY10 Levy Received $272,301 $339,960 $337,918 $363,743 Grants and Distributions $394.582 $464,253 $406,357 $437,507 Navy Ticketing (www.ranccf.com/navyticketing) The RANCCF has well-established networks of sellers and production companies such as Ticketek, TicketMaster 7, Showbiz and Theatres. Initially this service was limited to the Sydney region but has been successfully expanded to Western Australia, Victoria and South Australia. Navy Ticketing has been successful in securing the first available tickets to performances such as AC/DC, Powderfinger, Pink, Mettallica and others. Navy Ticketing achieved the following discounts to members: FY07 FY08 FY09 FY10 Discounts to Members $260,459 $348,981 $388,848 $261,565 These are just some of the examples of benefits available to sailors. The RANCCF has negotiated a range of benefits for members and the list is growing every year. Visit www.ranccf.com to better view the benefits available to RAN members. So, what's changing now? A little bit of history In May 1952, the Army proposed a combined canteen system for all three Services as an economy measure; however, the then Naval Board opposed an integrated organisation. Concurrently, the Naval Board had been considering a proposal to replace the existing Canteen Tenant System (effectively, private contractors) that operated in most shore establishments with the Service Canteen System that operated at sea and in major establishments. The Board subsequently decided to set up a new, separate RAN Canteen system. In a letter dated 25 Nov 52 from the Naval Board Secretary to the Flag Officer in Charge East Australia Area, the Board envisaged that: 'Basically, this service involves only that each canteen should be a separate commercial unit with equipment suited to the needs of a particular Ship or Establishment and under the administrative control of the Canteen Committee but using standard accounting systems, etc whenever practicable.' The Board desired that 'the scheme must of necessity be as far as possible self-supporting and the use of naval manpower and public funds reduced to a minimum.' The letter also stated that 'Shore establishment canteens must be allied to the naval canteen organisation to assist in carrying the canteens of the smaller units of the Fleet. This is equitable as ratings generally rotate to all types of service.' Additionally, 'A small administrative staff is planned at Navy Office to organise bulk purchase, accounting systems and matters of equipment, staff, etc.' Of interest, it was the Naval Board in 1953 who decided that the contribution to the RANCCF by canteens and messes should be 3-1/3% (ie, 8d in the £1 -- this should solve a mystery for many supply officers) of gross turnover and it has never been changed since. Subsequently, the new organisation was established under the Navy (Canteens) Regulations 1954, which created the RAN Central Canteens Board (RANCCB). The system worked well and continued virtually unchanged until demise of Supply Officers ashore from 1996 post the Defence Reform Program (DRP). Since then, shore canteens (with the notable exception of CReST in HMAS CERBERUS) have gradually deteriorated to the point that few shore canteens fully comply with the expectations of Navy personnel. There are widely varying arrangements in place, whilst some establishments no longer have a canteen at all. Major developments this financial year The RANCCF is currently seeking the approval of the Chief of Navy VADM Russ Crane, AO, CSC to re-institute and re-invigorate the RAN Service Canteen System. The RANCCB aims to take corporate control, oversight and responsibility for every shore canteen. Each canteen or business unit would operate separately, but under the overarching umbrella of the RANCCB as the parent Body Corporate. Implementation would need to be phased in over a period of up to three years. It is proposed that a profit sharing arrangement will be negotiated with each establishment on an as required basis to take into account the unique requirements of each differing establishment's needs. This may eventually lead to the reduction or abolition of the current 3 1/3 % levy. It is also proposed that a forum that links the differing geographical, social, welfare and operational needs of the disparate Commands and RAN canteens with the practicalities of business operations should be established. Items raised by the forum would be automatically then be agenda items for consideration by the RANCCB. Such a forum would be the vehicle for Commanding Officers to register any unique requirements of their Commands and would allow two-way communication within the new Canteen System. Conclusion The RANCCB has introduced a number of measures to protect the RANCCF as a benefit provider to Navy members by introducing a number of financially viable business entities. These activities have also raised the profile of the RANCCF and its purpose in the RAN and will continue to do so through the distribution of grants and increased member benefits. The RANCCB is continually looking for new ways to improve their service to the sailor, such as the current proposal before CN. We invite you to contact the RANCCF with any questions you may have on (02) 6266 4985 or email Barnie van Wyk at Barnie.VanWyk@defence.gov.au.