HC Deb 19 July 2004 vol 424 cc18-9
14. Tony Baldry (Banbury) (Con)

When he expects to make a decision on the future structure of the Defence Storage and Distribution Agency. [184482]

The Minister of State, Ministry of Defence (Mr. Adam Ingram)

In the light of recent commercial developments, a decision on the future defence supply chain can be expected early in 2005.

Tony Baldry

Does the Minister accept that a trading fund could both provide the Ministry of Defence with substantial savings in defence logistic procurement and ensure that Ministers retain the assets in their control? Does he appreciate that many people are keen for Ministers to retain those assets? If Margaret Thatcher were Prime Minister, she would not have lost control of crucial assets of this kind. I find it rather worrying when Ministers are moving further to the right than me.

Mr. Ingram

I will not refer to past Tory Administrations. We have already had a good history lesson today about the impact of some of them, under Lady Thatcher and of course John Major, on the armed forces. We need only refer to the spending profiles. The hon. Gentleman should take stock before praying Lady Thatcher in aid.

The hon. Gentleman asked whether a trading fund was recognised as a possible solution. The answer is yes: it is one of the options, although it must be set against what the private sector is offering. We must get that right, so that we can ensure that the supply chain is robust, is there when it is needed, delivers on time and provides value for money.