Defence Munitions Establishment, Gosport (Hansard, 26 July 2000)

§ Mr. Spellar

In common with the rest of the Defence Logistics Organisation, Defence Munitions has been set challenging savings and efficiency targets. A number of significant savings initiatives have already been delivered from the constituent parts.

Previous efficiency studies such as Options for Change and Front Line First have, by and large, resulted in DM Gosport in Hampshire being a net inheritor of tasks and resources. Consequently the Depot has escaped the hard root and branch reviews which other parts of Defence Munitions have been subject to. To address the efficiency issue at DM Gosport a review of work practices and Depot management structure was initiated late 1999. The Study Team identified, as a first step, business efficiencies which, if implemented, would result in reductions of up to 30 per cent. of the total number of posts of 650.

I was advised in February that further work was necessary. This was undertaken by a team comprising Depot staff and Trades Union representatives, which was supported by consultants to build upon the team's work, and charged with identifying the precise future optimum business processes and management structure of the Depot. This further work has now completed and indicates that post reductions in the order of 46 per cent. are possible without detriment to the output of the Depot.

A "without commitment" Preference Exercise carried out at the Depot has identified that the majority of redundancies would be achieved voluntarily. While the probability of job losses is always unwelcome, it is crucial that we take advantage of new business processes (such as multi-skilling, operator self inspection, exploitation of new technology, and outsourcing of a number of support functions) if we are to ensure that we are able to maximise investment on front line defence capability and continue to give best value for money to the taxpayer.

I also hope that these changes will better place DM Gosport to win future commercial contracts for weapon processing and associated work, therefore securing job opportunities for the future.