§ Mr. ShersbyTo ask the Secretary of State for Defence for what purpose his Department is setting up a works organisation; and what will be the total salary bill.
§ Mr. Archie HamiltonOn 25 May 1988 my right hon. Friend the Member for Cirencester and Tewkesbury (Mr. Ridley) announced the Government's decision that as418W from the 1 April this year the Ministry of Defence would be "untied" from the PSA. This means that the MOD will have new responsibilities both for managing funds and for deciding how to undertake our substantial works programme.
The MOD is setting up Defence Works Services at Sutton Coldfield to help in the discharge of these new tasks. It will not, however, directly manage works services. DWS will supply professional, technical and contractual expertise to Ministry of Defence departments and service commands which are the customers for works services so that the best procurement options for the supply of services are identified.
Under present plans, the total salary bill for DWS staff for the first full year of operation will be around £3 million at current prices rising to about £4.5 million during 1992–93 and thereafter.