HC Deb 02 April 2001 vol 366 cc20-1W
Mr. Andy King

To ask the Secretary of State for Defence if he will make a statement on the future of the Defence Aviation Repair Agency. [156889]

Mr. Spellar

When my predecessor announced the creation of the Defence Aviation Repair Agency (DARA) as a Defence Agency, with effect from 1 April 1999, he stated the intention to move the organisation to Trading Fund status as soon as practicable. Following the approval by this House and the enactment of the requisite Statutory Instrument, DARA will now become a Trading Fund from 1 April 2001.

In allowing DARA to move to Trading Fund status, we untie it from the Vote funding system. DARA will now be able to earn revenue directly from its customers and reinvest its trading surplus in new plant or machinery to meet its customers' requirements.

Customers will now have a clear and transparent pricing structure that will allow them to choose the services that offer the best value for money while helping to maintain robust and healthy competition in the aviation repair industry.

The current Chief Executive will continue to fill that position.