§ Mr. Denzil Daviesasked the Secretary of State for Defence what are the financial reasons for the proposed putting out to contract of support facilities at RNAY Fleetlands.
§ Mr. FreemanTo achieve any financial savings that may be possible.
§ Mr. Denzil Daviesasked the Secretary of State for Defence what will be the effect of the proposed reduction, by putting out to contract, of support services at RNAY Fleetlands on the unit costs of the rest of the establishment.
§ Mr. FreemanThe unit costs of the establishment's output will be reduced, if there are reductions in the costs of support services.
§ Mr. Denzil Daviesasked the Secretary of State for Defence what percentage of the budget of RNAY Fleetlands is spent on the purchase of spares; and what percentage is spent on labour costs.
§ Mr. FreemanAbout 65 per cent. of the current budget represents the cost of direct material, including new equipment as well as spares. The latter cannot easily be identified separately. Staff costs are about 20 per cent. of the budget.
§ Mr. Denzil Daviesasked the Secretary of State for Defence what studies have been carried out into whether financial savings could be obtained at RNAY Fleetlands by employing more staff on repair and maintenance and so reducing the cost of purchase of new spare parts.
§ Mr. FreemanThe staff numbers required and the costs of spare parts are kept under regular review. Actions are in hand to increase the number of staff engaged on the yard's core tasks by 20 in the current year, and to implement consultancy recommendations on means of reducing the spares bill.