§ Mr. Gordon Brownasked the Secretary of State for Defence if he will publish all the figures available to him of the range of estimated savings and costs for (a) transitional arrangements and (b) year-to-year expenses in the running of the royal dockyards under a private agency-management scheme; and what is the assumed profit margin for the contractor.
§ Mr. LeeIt would not be appropriate to disclose the details of the estimates which have been made because this would prejudice future negotiations with contractors should commercial management be adopted. However, taking account of the initial implementation costs of some £60 million, our most recent assessment is that annual savings would amount to some £25 million rising to some £29 million–£33 million.
§ Mr. Gordon Brownasked the Secretary of State for Defence if he has calculated the sum of money required to set up a pension fund for royal dockyard employees in the event of a franchise arrangement for the dockyards; and if he will make a statement.
§ Mr. LeeNo. Broad estimates have been made but the Department would take actuarial advice on the precise level of funding required for any new pensions arrangements for royal dockyard employees.