Who is Frontline & What happens to the Profits?
The Army and Air Force Canteen Service was established in 1981 after a major review of previous canteen service organisations, and since 1997 trades as Frontline Defence Services with the primary stakeholders being the OR Service Personnel. In reality, the uniformed Soldiers and Airmen are our Shareholders.

The Organisation is responsible to government through The Minister for Veterans' Affairs and the Minister Assisting the Minister for Defence The Hon Danna Vale, MP via a Board of Management with reports of the Board tabled in Parliament.

What happens with the profits?
Profits that are generated from the business activities are paid back to the Stakeholders as follows:

• Every base receives a "Royalty distribution" (introduced in January 2002) where a percentage of every Sale made on Convenience Products, in the Taverns or to Mess & Clubs is paid quarterly in arrears.
• Dividends paid annually at the discretion of the Board. Dividends if applicable based on profitability of the outlet.
• Operating profits from Overseas and larger bases support smaller bases which make no profit because of size.
• A portion of the Profit is reinvested back into the business.
Please note
The disbursement process for all Royalties and Dividends at Base Level is entirely at the discretion of Base Command
*Distributions Paid

Who are the Directors and how are they appointed?
Mr Robin Hart AM - Chairman
Brigadier W R Jackson AM - Deputy Chairman
Brigadier P B Retter
Air Commodore K N Birrer AM
Air Commodore C Beatty DFC AFC
Hon S S Doumany
Mr Ken Kipping
Mr Michael Hume - Managing Director

• Three Directors are appointed by the Minister one of whom is Chairman: all of whom are appointed using the government's appointment system.
• The Military Board members are appointed by the respective Defence Chiefs all of whom must be above the rank of Brigadier or Air Commodore.
• The Managing Director is appointed by the Board.
• No Military Board Members are paid for services.
• Civilian Board Members are paid remuneration as determined by the guideline of the Remuneration Tribunal.
Initiatives Taken By Frontline over the Past 12 Months
• The introduction of "Royalty" distributions ensuring all personnel are treated equitably - the more you spend the more you get back in Distributions
• Introduction of Base Service Agreements
• Increased trading hours to accommodate ease and convenience for the customer
• New concept 'C-Stores' at Enoggera (Army) and Laverton (RAAF)
• Continual support of "Pay Plan" - no interest, no deposit, no strings attached with payments made by up to 24 pay allotments
• New retail programs with increased product range and services

Why does Frontline exist?

• To provide convenient shopping, taverns and leisure facilities to the Defence Family on Bases in Australia and Overseas in a safe environment at a fair price in either directly operated facilities or through licenced traders.
• To generate profits which are returned to uniformed personnel in the form of cash distributions *.
• Cash distributions are distributed to Base Command. Base Command in turn distribute to Units at their sole discretion.
• Cash distributions are used on welfare and amenity programs to improve conditions for all uniformed personnel i.e.

- equipment for Social Clubs
- audio visual equipment and satellite connections to enable those personnel serving in East Timor to keep up to date with Australia
- Sponsorship of various sporting teams and Defence-related events across Australia

• Frontline delivered value to all stakeholders in excess of $AUD 9million last year.

Retail Services Provided in Australia and Overseas

Support to all Army and Air Force Personnel overseas and major exercises within Australia
• Duty-free service
• support of all major Exercises like "Tandem Thrust"

Electrical, leisure and consumer goods

• wide range at competitive prices
• "Pay Plan" - free of all interest and charges and deposit free to all uniformed ADF personnel - savings on foregone interest in excess of $450,000 annually to the ADF.
• The Pay Plan comprises 19.5% (last year 19.6%) of all sales and is entirely from internal funds
• duty-free service in East Timor & Bougainville

Convenience Stores (like a "7/11" or service station) - 3.5% Royalty

• we are not a Supermarket or Chain Store
• wide range of convenience products
• food and liquor 'to go' at convenient hours
• dry cleaning
• postal services (major outlets only)
• function catering

Mobile Food Vans

• full food offer delivered to the workplace
• mobility to match that of customers

Taverns - 5% Royalty

• operation of Other Ranks (OR's) taverns with staff trained in the responsible service of alcohol
• competitive pricing - 20%-30% cheaper than off-base offers
• safe environment for family and friends with entertainment, promotions and 'Happy Hours'
• food available at most taverns

Wholesale supply to Messes & Clubs - 2% Royalty

• credit terms not otherwise available to approved Clubs and Messes, saving Clubs and Messes in excess of $60,000 annually
• free delivery service

* Distributions Paid

A new beginning - Grand opening Enoggera

What Enoggera has to offer?

• Extended trading hours 7am - 7pm 6 days a week
• Food - Takeaway food or eat in
• Health food products
• Grocery lines
• Full range of convenience products
• Mobile food vans
• Mess & club credit sales
• Expanded electrical range (Pay Plan & Cash)
• Leisure related products

Currently under construction

• Liquor store (cold & dry)

New things to come

• New website (December 2002)
• Online shopping (2003)

Henry Dalziel Club, Enoggera Weekly Results $
After the first five weeks trading the results (see table) -
Every Dollar You Spend the More You Get Back in Distributions

Have Your Say -

Contact our Managing Director, Mike Hume
at PO Box 1461, Milton, Qld, 4064
Or Email: helpdesk@frontlineds.com.au

 

.