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Defence Logistics Organisation

Mr. Jim Cunningham: To ask the Secretary of State for Defence if he will make a statement on progress in establishing the Defence Logistics Organisation. [117883]

Mr. Spellar: We have met the Strategic Defence Review commitment to create a single unified Defence Logistics Organisation (DLO) on time, on 3 April this year. The DLO is committed to reducing its costs by 20 per cent. by the year 2005, and these savings will go towards our continuing programme of modernisation for the UK's Armed Forces. DLO key initiatives include a lean support programme; a reduction in non-explosive stocks; about 20 per cent. reduction in current storage capacity; the introduction of the Government Purchasing Card and the development of a Defence Electronic Commerce Service.

Balkans

Mr. Edwards: To ask the Secretary of State for Defence if he will make a statement on the role of the reserve forces in supporting the regular Army in Bosnia and Kosovo. [117891]

Mr. Spellar: We continue to value the significant contribution which the reserve forces make to operations in the Balkans.

The reserves have consistently provided between 10 and 14 per cent. of the manpower for the UK's contribution to NATO operations in the former Yugoslavia since operations commenced in 1995. Currently, reservists represent some 13 per cent. of the UK force in Bosnia and some 10 per cent. in Kosovo; indeed, 18 personnel from the Royal Monmouthshire Militia based in my hon. Friend's constituency have volunteered for service in the Balkans since July 1998.

Mr. Hancock: To ask the Secretary of State for Defence how many personnel have been (a) injured and (b) killed, in (i) Kosovo and (ii) Bosnia since NATO land forces have been involved; how many have left the UK armed services as a result of injuries sustained while there; and if he will make a statement. [119151]

Mr. Spellar: Since NATO land forces have been involved, four personnel have been killed in the Kosovo theatre of operations and 26 in the Bosnia theatre of operations to date. Injuries have been reported in respect of nine personnel in the Kosovo theatre of operations and

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261 in the Bosnia theatre of operations in the period up to the end of 1999. All figures are in respect of regular armed forces personnel.

Information in respect of the number of personnel who have left the armed forces as a result of injuries sustained in Kosovo and Bosnia is not held centrally and could be provided only at disproportionate cost.

Military Equipment Contracts

Mr. St. Aubyn: To ask the Secretary of State for Defence if he will estimate (a) the number of contracts for the (i) repair and (ii) modification of military equipment and (b) their cumulative value which in 1998-99 were subject to (A) an open and (B) a restrictive tender. [117895]

Dr. Moonie: In 1998-99 there were 2,307 contracts awarded for repair activities. Of these, 1,211 with a cumulative value of around £278 million were awarded as a result of competition, and the remaining 1,096 (valued at around £676 million) were non-competitive.

In the same year, 224 contracts for modification of equipment were awarded. Of these, 120 contracts with a cumulative value of around £14 million were awarded as a result of competition. The remaining 104 contracts (valued at around £66 million) were non-competitive.

De-mining

Mr. Browne: To ask the Secretary of State for Defence what assistance his Department is giving in the clearing of land mines. [117898]

Mr. Michael Jabez Foster: To ask the Secretary of State for Defence what steps his Department is taking to assist those involved in humanitarian de-mining. [117892]

Mr. Spellar: I refer my hon. Friends to the answer I gave to my hon. Friend the Member for Warrington, North (Helen Jones) today, Official Report, column 688.

US National Missile Defence System

Mr. Corbyn: To ask the Secretary of State for Defence what co-operation his Department is having with the US Department of Defense concerning the National Missile Defence system. [117908]

Mr. Hoon: We have dialogue with the US Administration on their possible deployment of a National Missile Defence system. The US has not asked for UK assistance in the deployment of the system, nor would we expect them to do so until after a US decision has been made on whether or not to proceed with its deployment.

DERA

Mr. Sheerman: To ask the Secretary of State for Defence what steps he is taking to ensure that the effectiveness of the Defence Evaluation and Research Agency will be maintained if the proposals for its part-privatisation are implemented. [118987]

Mr. Hoon: The Government concluded in the Strategic Defence Review that, in order to guarantee the ability of the Defence Evaluation and Research Agency (DERA) to continue to conduct world-class research, we would harness the opportunities offered by a Public Private

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Partnership. Last year's consultation exercise on a potential PPP proposal produced a wide range of useful comments from stakeholders.

As a result of this process, I announced in October that we would be widening the scope of our discussion to take these comments into account. That work is now complete and has led to the development of two revised models for potential PPP structures, known as "Core Competence" and the "Public Sector Option". A detailed evaluation of these options indicates that Core Competence best meets the PPP objectives while also responding to the views of stakeholders. Both models are described in a consultation document which has been placed in the Library of the House and which is also available on the internet at www.mod.uk/commercial/ppp/dera/.

The essence of Core Competence is a clear separation of those functions which are best developed within a PPP, and those which are best performed wholly within Government. Around three quarters of DERA would be turned into a company, which we would hope to float on the stock market as soon as its potential is judged to be suitably developed. A core of staff would be retained wholly within the MOD to provide a high level overview of defence science and technology. This ensures that MOD would retain access to in-house impartial advice and allows management of the defence research programme and international research collaboration. Specific very sensitive areas and programmes would also be retained.

I believe that this approach would create two vibrant sustainable organisations. The new company would have the freedom to flourish, to grow its business and to diversify the wealth of knowledge it has built up over the years to the benefit of the wider UK economy while still providing the MOD with the essential services we will continue to need long into the future. The retained organisation will be a small but also world-class organisation offering rewarding careers within MOD and the wider civil service.

This approach is good for DERA, good for MOD and good for the wider UK economy. It will provide the UK technology sector with added impetus and ensure we are well placed to take on the challenges and opportunities offered by the 21st century.

All stakeholders are now being invited to submit their views on the revised proposals. As the exercise has proved, we are willing to listen and to respond to comments before taking a final decision.

Army (Drugs Offences)

Mr. Opik: To ask the Secretary of State for Defence if it is the practice that soldiers convicted of serious charges relating to drugs offences and who (a) are facing or (b) have served custodial sentences are dismissed from the Army; and if he will make a statement. [118879]

Mr. Spellar [holding answer 14 April 2000]: All soldiers, wherever they are serving, are liable for Compulsory Drug Testing (CDT). CDT is primarily an administrative, not a disciplinary matter. Following a positive test result or the refusal to provide a specimen, an Army officer would be required to resign, and a soldier

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will normally be administratively discharged. A commanding officer does, however, have the discretion to retain soldiers of the rank of Lance Corporal or below if:

(a) It was the first occasion on which drug misuse had been detected, or the first occasion on which he or she had refused to undergo testing, and
(b) In the case of a positive test result, no trace of Class A drugs was detected and,
(c) In all other respects the individual is considered a good serviceman or woman whose retention would be in the interest of the service.

To serve a custodial sentence a soldier would need to be found guilty of a disciplinary offence following which the rules contained in Queen's Regulations 9.404 would come into effect. The rules state that a soldier is to be discharged if he has been sentenced by a civil court or by court-martial to imprisonment or to detention or to any other form of custodial sentence. If in the opinion of the commanding officer there are exceptional reasons that make retention of the soldier desirable then the case is to be submitted with valid and explicit reasons to the Director of Manning (Army) for a decision.

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