Select Committee on Defence First Special Report


Memorandum from the Ministry of Defence concerning the Defence Logistics Organisation (18 April 2000)

  As you may know, the new Defence Logistics Organisation was launched on 3 April. It has bold targets for reducing costs while improving the quality of logistics support to the Front Line. Part of achieving this will be by better integration of capacity across the DLO internally and between the DLO and its private sector suppliers. One area which requires attention is the excess capacity available for ship repair across the spectrum of the privatised dockyards and the naval bases which remain under public sector management.

  You will wish to know that we are opening discussions with the dockyard and warship repair companies—Babcock Rosyth Defence Ltd at Rosyth, Devonport Management Ltd (DML) at Devonport and the management of the facilities at Portsmouth. The aim is to explore with the companies new ways, through partnerships and joint venture, of going about this business. This most certainly does not imply that we are aiming to close any dockyards or naval bases but we will be looking at how to involve the private sector in the provision of logistic support right up to, and sometimes beyond, the waterfront.

  We will be informing our Trades Unions and the MoD civilian workforce at the Bases today. The companies will inform their workforces.

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