§ Mr. DrewTo ask the Secretary of State for Defence if he will make a statement on the progress of the private-public partnership within DERA. [152775]
§ Mr. Hoon[holding answer 8 March 2001]: I refer my hon. Friend to the announcement I made in the House on 24 July 2000, Official Report, columns 777–79 about our decision to implement the core competence model for the DERA public-private partnership. Under core competence, around three-quarters of the current DERA organisation will be turned into a company, referred to as NewDERA. For strategic reasons, the remainder will be retained within the Ministry of Defence to carry out functions that could not appropriately be transferred to the private sector.
Work to implement the PPP has intensified over recent months and significant progress has been made on separating DERA into two new organisations. An amended trading fund order, entitled the draft Defence Science and Technology Laboratory Trading Fund Order 2001, was laid before Parliament on 17 January 2001. Operational separation of DERA is planned by 1 April 2001. Legal separation follows on 1 July after a period of shadow operation to test the organisations and their infrastructures. We will then carry out the remaining work necessary to prepare NewDERA for sale.
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§ Mr. DrewTo ask the Secretary of State for Defence if he will make a statement on the extent to which DERA has met its targets in relation to payment of its sub-contractors; and what steps are being taken to improve the timeliness of payments. [152772]
§ Mr. Hoon[holding answer 8 March 2001]: During the year 1999–2000, as reported in the annual report for that year, DERA paid in excess of 97 per cent. of invoices within the agreed credit period on receipt of an undisputed invoice or date of confirmation of receipt of an acceptable service. The payment process is monitored and DERA is currently exploring the possibility of introducing a fast-track payment system for the large number of low value invoices that it processes and making payments more frequently. DERA currently makes payments twice a week, once by cheque and once by bank automated clearing system (BACS).