§ Mr. Jim CunninghamTo ask the Secretary of State for Defence if he will make a statement on progress in establishing the Defence Logistics Organisation. [117883]
§ Mr. SpellarWe have met the Strategic Defence Review commitment to create a single unified Defence Logistics Organisation (DLO) on time, on 3 April this year. The DLO is committed to reducing its costs by 20 per cent. by the year 2005, and these savings will go towards our continuing programme of modernisation for the UK's Armed Forces. DLO key initiatives include a lean support programme; a reduction in non-explosive stocks; about 20 per cent. reduction in current storage capacity; the introduction of the Government Purchasing Card and the development of a Defence Electronic Commerce Service.