http://www.defence.gov.au/dmo/id/cic_contracts/cic_contracts...

Commercial-in-Confidence information
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The Commonwealth Procurement Guidelines (January 2005) state that agencies should ‘consider, on a case-by-case basis, any request by a supplier for material to be treated confidentially’. The Defence Materiel Organisation term ‘commercial-in-confidence’ has the same meaning as ‘confidential information’ that is used frequently by Defence and other government agencies, parliament and the courts.
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http://www.newcrops.uq.edu.au/newslett/ncnl2-3.htm

3. Commercial-in-Confidence: handling confidential partnerships
Steve Martin
Manager, Horticulture and Export Development Branch
Department of Primary Industries and Fisheries Tasmania
The development of new crops and opportunities is a dynamic process. The methodology being adopted by the DPIFT has been developed as part of a concerted effort to capture a number of 'neglected', rather than strictly 'new', crop opportunities which have been identified as having good prospects for commercial success in Tasmania's temperate climate.

The criteria against which 'new' opportunities are being evaluated is proving to be very effective and already a number of prospects are looking very promising. Experience to date has shown that the key to success is the early involvement by individuals in the private sector who wish to share in the vision and are prepared to assist by contributing resources, including expertise and direct financial support.

The success of the approach is demonstrated by the level of commercial interest in the current program. The most public of these new associations is the relationship with Roberts Ltd, a major Tasmanian agricultural organisation which has joined in a partnership with the Department to assess the prospects for a Japanese green tea industry in Tasmania.

Such associations cannot be entered into lightly because, depending on the level of resources being offered, special conditions are often sought by the commercial partner aimed at providing them with a potential commercial advantage over their competitors.

This issue has now been addressed as part of the Department's 'new' crops program. In the past it has been argued that public sector funds should be used equitably and be available to all. The Department has now adopted a more pragmatic approach by acknowledging that for a commercial participant to be interested in participating in a major way they need to feel that there is a potential commercial benefit. If the participant cannot see any potential commercial benefit then any involvement that they have, or any contribution that they make, will be seen purely as a public relations activity with no commitment to the project.

The current approach with 'new' opportunities is to direct resources towards key participants in horticulture who have the resources to take an identified opportunity and develop it into a new industry. However, the establishment of such commercial partnerships creates new pressures for public sector organisations. Contributors generally want to establish some form of exclusivity which inevitably results in them wishing to actively exclude potential competitors.

To date, the DPIFT approach has been to limit the period of exclusivity or to establish guidelines to ensure that work undertaken as part of an arrangement cannot be 'mothballed' by a commercial partner for unreasonable periods of time should they not wish to continue with a project in which they have had a significant input.

In all cases, except where the work is 100% funded by a private organisation, the Department has adopted partnerships that will permit it to ultimately publish the outcomes of projects after an agreed period. In this way the Department believes that 'public good' ideals are being acknowledged.

The maintenance of any partnership requires a high level of trust beyond any formal legal agreements. Staff involved in projects may be required to sign confidentiality agreements aimed at ensuring that projects are not 'gossiped' about in inappropriate circumstances. Such gossip can easily undermine good corporate relationships.

While the Department's new crop program is still young we believe we have formed the basis of a workable arrangement with our private sector partners. They have also appreciated our position.

It seems essential for the public sector to adopt a long-term perspective and a more commercial approach if new opportunities are to be captured with the limited financial and human resources available.

We must acknowledge that the public sector will receive its dividends in the longer term from the increased economic activity generated by the efficient development of any new opportunities commercialised by our private sector partners.

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Note added at 21 mins (2006-11-18 07:18:49 GMT)
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