Letter to the Chairman from the Minister
for the Armed Forces
I am writing to let you know about some work
I am commissioning in relation to DARA. We are currently reviewing
strategic options for the future of DARA, in the light of the
recent decision on future Depth support for military aircraft.
Work on the DARA review to date has indicated
that there is no longer a strategic need to retain the organisation
within MoD. The decision as to whether DARA should remain part
of the Department therefore needs to be considered in terms of
whether this provides the most effective logistics support for
the Front Line and best overall value-for-money to the taxpayer.
The alternative to retaining DARA within MoD
would be to place parts or all of it in the private sector. To
be able to assess this option properly, we need to explore what
level of interest there may be from industry in acquiring the
individual business units within DARA. We therefore intend to
engage a firm of specialist advisers to examine this question
over the next few months, within the context of our overall strategic
review.
The sub-study will have potential relevance
to our work, with the Welsh Assembly, the Wales Office and others,
to explore alternative options for the viable and economic use
of St Athan after 2009, based on its transformation into an aerospace
centre of excellence.
My purpose in writing is to alert you to the
new work, and to explain that the decision to undertake it does
not in any sense imply that we see sale to the private sector
as a "preferred" option. Indeed, we are approaching
the strategic review as a whole without prejudice or preconception
as to its outcome. We will judge any external interest in acquiring
DARA business units objectively and impartially against the alternative
of retaining DARA in-house. As indicated above, the criteria will
be quality of support to the front line and overall value-for-money.
I hope to be able to reach conclusions about
the way forward for DARA by the middle of 2005.
Rt Hon Adam Ingram MP
December 2004
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