§ Mr. David MartinTo ask the Secretary of State for Defence what progress has been made towards establishing a defence research agency under the Government's next steps initiative; and whether any decision has yet been taken on its status within the public sector.
§ Mr. NeubertSince my predecessor's statement to the House on 16 March 1989 on the intention to establish a defence research agency (DRA), Mr. Nigel Hughes has been appointed chief executive (designate) following open competition; an MOD implementation team is taking work forward, with the chief executive (designate), to develop the organisation, procedures and infrastructure that will be needed within both the MOD and DRA; and we have been consulting the trades unions.
My Department has been considering the status of the DRA and how best to secure the necessary change. For the new and sharper relationship required, between the customers for and suppliers of defence research and project support, the DRA will need to be clearly distinct from the rest of the MOD, run on businesslike lines and with a trading relationship with its customers in MOD and elsewhere. At the same time, it must continue to make its key contribution as an independent and objective source of scientific and technical advice, in support of defence equipment procurement and related matters.
I believe that the best way forward is to establish the DRA as a Government trading fund within the Civil Service as quickly as possible. This would take the form of a distinct organisation answerable to the Secretary of State for Defence. Work will now be concentrated on putting this into effect.
As my predecessor told the House, a final decision on the move to agency status will depend upon successful completion of this work. Our target date remains April 1991.