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Military Air Radar Services
The Minister of State, Ministry of Defence (Mr. Adam Ingram): I am pleased to announce that the Ministry of Defence has today signed a contract with National Air Traffic Services (En Route) plc for approximately £725 million to provide an en route air traffic control facility to the Ministry of Defence until 2021. This contract enables military personnel to work alongside National Air Traffic Services (En Route) plc staff to manage air traffic within UK airspace.
The existing contract with National Air Traffic Services (En Route) plc expires in July. I am pleased to confirm that National Air Traffic Services (En Route) plc will continue to provide this facility for the next 15 years.
The signing of this new contract reflects the continued commitment of the Government to an integrated military-civilian approach to en-route air traffic control services. Such an approach, with military personnel working alongside National Air Traffic Services (En Route) plc staff, works to the benefit of all airspace users. This is a world leading concept and offers both operational and cost benefits to Defence.
MARS Programme
The Minister of State, Ministry of Defence (Mr. Adam Ingram): I am pleased to announce that the following three companies have been chosen to compete for the role of Integrator for the Military Afloat Reach and Sustainability (MARS) programme:
MARS will form an essential part of the UK's Versatile Maritime Force, providing a suite of vessels to supply UK and allied vessels with fuel, food, ordnance and other support they need to sustain operations. MARS will also introduce a new capability, providing joint sea-based logistics for those operations where Host Nation Support is absent or limited or where we would wish to reduce our footprint ashore.
The MARS vessels, will have some military features, while being technically similar to specialist merchant ships. We therefore want the build of the MARS ships to harness the efficiency of specialist commercial shipbuilding practice. As indicated in the Defence Industrial Strategy, we expect the competition for the shipbuilding element of this project to be wide-ranging.
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UK yards and other suppliers will be given every opportunity to compete for this shipbuilding work and should see it as both a challenge and an opportunity to demonstrate world-class performance. With the high planned workload on CVF and Type 45, the complex warship design and integration capabilities that we intend to sustain in the UK will remain healthy for some years.
The Integrator's key role will be to use their expertise in engineering project management and supply chain relationships to drive good project management and partnering practice into a delivery team consisting of the MOD, the Integrator, and key suppliers. The selected Integrator will also help MOD identify the shipbuilders and other key suppliers, and develop the right partnering approach to ensure successful delivery of the MARS programme.
The shortlisting of potential Integrators marks a significant step forward for this project. The companies will now work with the Ministry of Defence to provide evidence of their suitability to be the MARS Integrator.
The MARS project, along with the future aircraft carriers, Type 45 destroyers and Astute submarines, forms part of the largest procurement programme of new ships for many years, reinforcing our firm commitment to provide UK Armed Forces with the enhanced naval capabilities needed to face the threats of the 21st Century.
DEPUTY PRIME MINISTER
Spring Supplementary Estimate
The Deputy Prime Minister (Mr. John Prescott): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Office of the Deputy Prime Minister's Departmental Expenditure Limits for 2005–06 will change as follows:
(1) The Office of the Deputy Prime Minister's Main Programmes DEL will be increased by £42,327,000 from £9,468,500,000 to £9,510,827,000 and the administration costs limit will also be increased by £454,000 from £335,358,000 to £335,812,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
*Depreciation, which forms part of resource DEL, is excluded from the total DEL, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
The change in the resource element of the DEL arises from:
Take up of End Year Flexibility of £8,532,000 for Safer Communities Supported Housing Fund.
Drawdown of £21,234,000 in advance from the European Development Fund PES Pool for the European Regional Development Fund.
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a net transfer of £6,797,000 to other Government Departments, comprising:
From Other Government Departments
Administration Costs (Central ODPM)
£524,000 baseline transfer from Cabinet Office for work by Parliamentary Counsel;
Administration Costs (Government Offices)
£210,000 from Department of Trade and Industry to cover work on UK Trade International.
To Other Government Departments
£6,000,000 to the Department for Culture Media and Sport for the balance of the Office's contribution for 2005–06 towards the Olympic preparation infrastructure costs.
Administration Costs (Central ODPM)
£1,513,000 to the Department for Constitutional Affairs comprising of £262,000 for electoral work and £1,251,000 to cover resources for the Boundary Commission arising from the Machinery of Government change in May 2005.
Administration Costs (Government Offices)
£18,000 to the Department for Constitutional Affairs for electoral work arising from the Machinery of Government change in May 2005.
an increase in receipts of £91,429,000 offsetting increases in provision of £570,000 for Research; £500,000 for Planning Inspectorate; £9,000 for New Horizon programme; £40,000 for Green Flags programme; £250,000 for Ex-Housing Revenue Accounts Repayment; £2,681,000 for New Dimension; £96,000 for Firelink; £80,000 for Fire Services; £231,000 for administration costs; £853,000 for expenditure incurred on the Boundary Commission; £3,266,000 for Government Offices; £62,419,000 for non voted English Partnerships from land sales ; £21,234,000 for European Regional Development Fund and a reduction of £800,000 in receipts comprising of £700,000 for Fire Services and £100,000 for non voted Housing Corporation.
a transfer of £60,827,000 from resource to capital comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for Private Housing Renewal; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.
a transfer of £12,000,000 from capital to resource for Large Scale Voluntary Transfers.
a net transfer of £4,473,000 from voted to non voted provision comprising:
From voted to non-voted provision
a transfer of £6,598,000 to Housing Corporation comprising £22,000 from Housing Management Grant and £6,576,000 from Safer Communities Supported Housing Fund;
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£1,600,000 to Thurrock Urban Development Corporation for approved projects;
£200,000 to Thames Gateway (London UDC);
£1,000 initial budget to FiReBuy.
To voted from non-voted provision
£135,000 from Thames Gateway South East of England Development Agency;
£1,291,000 from Housing Corporation to Homelessness
£2,500,000 from the Departmental Unallocated Provision to Better Services section .
As a result of the changes to Request for Resources 1, The Office of the Deputy Prime Minister's administration provision will be reduced by £797,000 from £337,324,000 to £336,527,000.
The change in the capital element of the DEL arises from:
Drawdown of £22,930,000 in advance from the European Development Fund PES Pool for the European Regional Development Fund.
a transfer of £3,572,000 to other Government Departments comprising of £3,157,000 PES transfer to Wales from New Dimension; £415,000 to Department for Transport for administration capital.
an increase in receipts of £25,580,000 offsetting increases in provision of £2,328,000 for New Dimension (comprising of £1,147,000 from Northern Ireland; £1,033,000 from Scotland and £148,000 from Staffordshire ); £22,930,000 for European Regional Fund and £322,000 for the Emergency Fire Service in respect of Green Goddesses.
a transfer of £60,827,000 to capital from resource comprising £1,500,000 for Growth Areas; £1,200,000 for Thames Gateway; £1,291,000 for Homelessness; £286,000 for National Register of Social Housing; £1,350,000 for non-voted Housing Corporation and £55,200,000 for non voted English Partnerships.
a transfer of £12,000,000 to resource from capital for Large Scale Voluntary Transfers
Within the capital element of the DEL there is a net transfer of £21,865,000 from non voted to voted provision comprising ;
From voted to non-voted provision
£6,652,000 for Departmental Unallocated Provision;
£600,000 from Growth Areas for capital projects;
£3,925,000 from Thames Gateway for capital projects.
To voted from non-voted provision
£31,242,000 from Arms Length Management Organisations comprising £14,242,000 to Housing Market Renewal Fund, £5,000,000 to Growth Areas and £12,000,000 to Large Scale Voluntary Transfers programme.
The Office of the Deputy Prime Minister's Local Government DEL will be increased by £2,441,000 from £46,678,171,000 to £46,680,612,000. Within the DEL change, the impact on resources and capital are as set out in the following table:
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| Change | Voted | Non-voted | Total | |
|---|---|---|---|---|
| Resource | 1,941 | 46,187,097 | 105,665 | 46,292,762 |
| Capital | 500 | 379,240 | 8,610 | 387,850 |
| Depreciation* | -556 | -556 | ||
| Total | 2,441 | 46,566,337 | 113,719 | 46,680,056 |
*Depreciation, which forms part of resource DEL, is excluded from the total DEL, since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
The change in the resource element of the DEL arises from:
take up of End Year Flexibility of £2,000,000 from Invest to Save Special Grant;
a transfer of £59,000 to the Department for Constitutional Affairs for the balance of the Machinery of Government change for 2005/06.
a transfer of £1,130,000 from voted Best Value Inspection to non voted to provide Valuation Tribunals with funding for early exits.
an increase in receipt of £254,000 fully offset by an increase in provision for Electoral law.
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The change in the capital element of the DEL arises from a take up of End Year Flexibility of £500,000 from Invest to Save Special Grant.
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