§ Mr. FoulkesTo ask the Secretary of State for Defence what are the current arrangements for disposal of his Department's equipment which is surplus to requirements; how decisions about which equipment is surplus are arrived at; who decides on the arrangements for disposal; what procedures there are for fixing reserve prices; and if he will make a statement.
§ Mr. AitkenDecisions on whether equipment is surplus to my Department's requirements take into account the required levels of spares holdings and the defence equipment programme. Authority for day-to-day decisions rests with the appropriate service commodity and supply manager in consultation with the technical and engineering authorities and operational sponsors. The directorate of sales (disposals) arrange sales of surplus equipment through Government-to-Government and Government-to-industry contracts, competitive tenders and public auctions. These take into account the type and condition of the equipment and the available market opportunities. Sales prices are determined by competition. Auction reserve prices are based on a technical assessment by the directorate's staff of expected saleability. Unsold and unsellable items are disposed of under waste contract arrangements.