Defence Cost Study (Hansard, 14 February 1995)

§ Mr. Soames

Proposals recommending the rationalisation of naval stores depots were announced on 14 July 1994 and set out in detail in a consultative document promulgated on 19 August 1994. Representations were made by trade unions, a number of local authorities and Members of Parliament. The most detailed and careful consideration was given to all of the representations received on these proposals. Having reviewed all of this work, I am satisfied that the basis for the rationalisation of naval stores depots in order to provide an improved and more cost-effective system of stock distribution to the Royal Navy is sound.

I have therefore decided to proceed with the rationalisation under which depots at Eaglescliffe, Wrangaton and Exeter will close by April 1997, part of the latter site will be retained at least in the short term to support naval engineering tasks, pending further study. Naval stores depots at Devonport and Rosyth will be reduced, in the same time frame, although new waterfront storage facilities at the former will be provided to improve local support arrangements for the vessels base ported there. Naval stores facilities at Portsmouth will be enhanced by April 1997 to provide a central storage and distribution facility for a major part of the naval stores inventory. Facilities at Faslane will also be improved to meet the requirements of logistic support to the Fleet in Scotland.

These measures will result in significant savings of some £174 million over 10 years and some £24 million a year thereafter. Regrettably, there will also be significant reductions in civilian posts at the depots affected; approximately 1,170 posts will no longer be required. It is anticipated that many of these will need to involve redundancy. However, my Department will make every effort to keep redundancies to a minimum and will ensure that anyone made redundant will be offered a 612W comprehensive resettlement package and assistance with training. We will of course continue to consult staff and the trades unions about the detailed implementation of this programme. In addition, by liaising with other Government Departments, local authorities and training and enterprise councils, my Department will do everything it can to assist in finding alternative employment.