APPENDIX 9
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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