HC Deb 22 November 1994 vol 250 cc139-40W
Mr. Jamieson

To ask the Secretary of State for Defence what charge his Department makes to Leafield Logistics and Technical Services Ltd. for(a) delivery of supplies (b) stockpiling of goods for sale to Leafield Logistics on Government premises.

Mr. Freeman

The contract with Leafield Logistics and Technical Services, in its profit-sharing arrangements, encompasses any accumulation of stock and delivery and they are not the subject of a charge.

Mr. Jamieson

To ask the Secretary of State for Defence how many bidders Leafield Logistics and Technical Services Ltd, beat to win the contract to dispose of Navy surplus spares in 1992.

Mr. Freeman

Sixteen.

Mr. Jamieson

To ask the Secretary of State for Defence what is the total cost of the spares bought from his Department by Leafield Logistics and Technical Services Ltd; and what is the total income gained by his Department from the sale of spares to Leafield Logistics and Technical Services Ltd.

Mr. Freeman

No spares have been sold by my Department to Leafield Logisitcs and Technical Services Ltd. The contract with Leafield Logistics and Technical Services Ltd. is based upon a profit-sharing arrangement.

Mr. Jamieson

To ask the Secretary of State for Defence what is his Department's estimate of the net gains or losses, in terms of cost, to his Department, of awarding the contract to supply spares for Oberon submarines and Leader class frigates to Leafield Logistics and Technical Services Ltd.

Mr. Freeman

My Department has gained considerable benefits from the contract with Leafield Logistics and Technical Services Ltd.

They are described at paragraph 3.25 of the report by the Comptroller and Auditor General—disposal by sale of defence surplus equipment and stores, HC 557 dated 14 March 1993.