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Gun Buy Back Scheme - The Australian National Audit Office

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• that compensation should be based on an independent valuation.<br />

3 43 <strong>The</strong> guidelines on compensation for parts did not include a<br />

schedule of values as they did for complete weapons. This did not<br />

appear to present any significant problems in relation to surrender<br />

of individual weapons with their accessories. Victoria developed its<br />

own pricelist of the most popular accessories based on valuations<br />

of parts and accessories surrendered in the first few days of the<br />

scheme. <strong>The</strong> Director of the Victorian Firearms Reform Project told<br />

the ANAO that about five per cent of compensation payments<br />

made in that State were for parts and accessories. <strong>The</strong> ANAO also<br />

noted that Tasmanian officials had advised OLEC in early 1997<br />

that one claim by a dealer for 5 tonnes of machine gun parts would<br />

amount to about $2 million. This claim was subsequently paid.<br />

3 44 <strong>The</strong> Commonwealth did not anticipate that dealers would surrender<br />

large quantities of spare parts. Guidelines on compensation for<br />

dealers in relation to parts provided for the parts to be valued at the<br />

published selling price at 1 March 1996. Following the advice from<br />

Tasmania, OLEC discussed this issue with State authorities in<br />

early 1997. As a consequence, it was decided that only<br />

‘commercial quantities’ of spare parts should qualify for<br />

compensation with the remainder being compensated at scrap<br />

value. <strong>The</strong> Attorney-General’s Department was not able to tell the<br />

ANAO how much had been paid in compensation for surrenders of<br />

significant quantities of spare parts.<br />

3 45 <strong>The</strong> ANAO considers that the surrender of large quantities of spare<br />

parts was a risk to the scheme which may have been anticipated<br />

by the conduct of an effective risk identification and analysis<br />

process in the early planning stages. This could have enabled<br />

timely development of appropriate policy and legislation as<br />

required.<br />

Compensation for dealers<br />

3 46 Policy on compensation for dealers was initially developed by the<br />

APMC working group as outlined at para 0. This policy was<br />

included in the guidelines published by the Commonwealth in July<br />

1996 on compensation for the surrender of firearms.<br />

<strong>The</strong> <strong>Gun</strong> <strong>Buy</strong>-<strong>Back</strong> <strong>Scheme</strong> 37

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