HC Deb 22 March 1988 vol 130 cc106-7W
39. Mr. David Martin

To ask the Secretary of State for Defence what benefits have accrued as a result of the more commercial approach by his Department to defence procurement.

47. Mr. Brazier

To ask the Secretary of State for Defence what benefits have accrued as a result of the more commercial approach by his Department to defence procurement.

50. Mr. Holt

To ask the Secretary of State for Defence what benefits have accrued as a result of the more commercial approach by his Department to defence procurement.

87. Mr. Bellingham

To ask the Secretary of State for Defence what benefits have accrued as a result of the more commercial approach by his Department to defence procurement.

Mr. Sainsbury

The commercial approach, involving greater emphasis on competition, tauter contractual conditions and clearer incentives has already achieved substantial cost savings, some examples of which were included in the "Statement on Defence Estimates 1987" (CM101–1). The approach also provides the opportunity for the MOD to benefit from new technological developments and has helped exports by stimulating more efficient use of industrial resources, thereby making British industry more competitive.

66. Mr. Latham

To ask the Secretary of State for Defence whether he will make a statement on changes in departmental procurement procedures since the appointment of Mr. Peter Levene as chief of defence procurement.

Mr. Sainsbury

The Government continue to pursue value for money in defence procurement through the use of competition wherever practicable. Vigorous efforts are being made to appoint prime contractors for each project, with clearly defined responsibilities under incentive contracts. Procedures have been revised to ensure that interim payments are made only against demonstrated achievement. Greater emphasis is now placed on the potential export sales of equipment developed for our armed forces and on civil applications of the technology, as well as the possibility of adopting existing commercial products and technologies. Procedures call also for a full examination of means of meeting our needs through collaboration with allies, whether by joint development, reciprocal purchases or other means.

Following the recent scrutiny report, "Learning From Experience", which made some recommendations on how to improve further the management of projects, the Department has in hand further improvements building on those already mentioned above.

97. Mr. Wallace

To ask the Secretary of State for Defence whether he has considered any revisions to procurement contract arrangements following receipt of the report from Messrs. Jordan, Lee and Cawsey.

Mr. Sainsbury

The report "Learning From Experience" acknowledged the many improvements that have already been made in procurement procedures in recent years, particularly in contractual arrangements. The report's own recommendations are more concerned with technical and management issues. Most recommendations have been accepted and are being implemented.

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