Select Committee on Defence First Special Report

ANNEX G: Committee Recommendations: Progress (continued)

Ninth Report: The Future of DERA (HC 462) Published: 20 June 2000
Government Reply: Twelfth Special Report (HC 901) Published: 23 October 2000

 Recommendations and undertakings Government Response Committee Response/Follow-up Further GovernmentAction Notes
1.That the financial structure of New-DERA should be arranged so that its executives do not benefit disproportionately from any appreciation in the value of New-DERA shares arising from property sales or other windfall profits. (Para 16) The MoD is using City advisers to value assets so that DERA's sale price reflects such values at the point of transaction. It intends that remuneration packages should be linked to performance, with full transparency of reward packages, at the 'implementation point'.        
2.That New-DERA's potential involvement in 'defence manufacturing' needs to be clarified by the MoD. (Para 23) Accepted    
3.That at least those parts of the Centre for Defence Analysis that provide urgent support to commanders during operations—the so-called 'front-line CDA'—fall on the public sector side of the fence (para 37) All capabilities of the CDA will be retained within the MoD, but this need not prevent some staff being assigned to New-DERA.     
 Recommendations and undertakings Government Response Committee Response/Follow-up Further GovernmentAction Notes
4.That transparency in the application of the proposed compliance regime for New-DERA should be build into the Articles of the new company. (Para 49) It is still premature to define fully the nature of the constraints package, but it will have to draw a balance between protecting the MoD's interests while not overly constraining New-DERA's commercial activities.     
5.That the MoD reveal to the maximum extent possible the inputs into its latest consultation process on the future of DERA, especially those from the USA. (Para 62) Not addressed.The Committee subsequently sought further details of consultation inputs, which the MoD provided (in summary form) in November 2000.   

previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2001
Prepared 5 February 2001