HC Deb 12 July 2002 vol 388 cc1232-4W
Mr. Key

To ask the Secretary of State for Defence what(a) factors and (b) criteria were used by Defence Estates Organisation in their table-top evaluation of the likely sale value of Dean Hill Munitions Depot. [68912]

Mr. Ingram

In June 2001 Defence Estates SW provided an outline desktop valuation of the Dean Hill Munitions Site to advise the Defence Munitions Rationalisation Study 2 Investment Appraisal.

The valuation was based on the estimated realisation price, assuming that the sites had been subject to a Phase 2 Land Quality Assessment. It had been proposed that the eventual value for the site would be abated by the cost of the remedial work once known. Site inspections were permitted. However, in view of the sensitivity of the issues and as the purpose was to inform an investment appraisal, no approach was made to the local planning authority at that stage.

Due to the absence of clear planning guidance, with the exception of the residential property and agricultural land, the possible future uses of the remainder of the site were limited, The value was established by assuming disposal of the residential and agricultural property, and based on the limited redevelopment and re-use of the remaining area for potential employment uses.

Mr. Key

To ask the Secretary of State for Defence how many copies of Defence Munitions Rationalisation Study 2 Consultative Document (D/DM/72/46/1) dated 24 June were printed; and if he will list the locations to which they were distributed. [69422]

Mr. Ingram

131 hard copies of the Defence Munitions Rationalisation Study 2 Consultative Document were printed. These were distributed to:

46 to National Trades Union officials at various locations nationwide, 57 to civilian employees at Defence Munitions (DM) Dean Hill, 21 to the Ministry of Defence Police Officers stationed at DM Dean Hill. One copy each to the DM Whitley, Vice Chair and Vice Secretaries at DM Longtown (Cumbria), DM Beith (Ayrshire), DM Kineton (Warwickshire) and London.

Three copies for internal MOD distribution (one Bath, one Andover, one Wethersfield (Essex).

In the interests of openness, efficiency and better use of resources, the Consultative Document itself has been posted on the Defence Munitions Web Site where it can be viewed by MOD staff as required. It was also sent electronically to each Defence Munitions establishment at Beith, Crombie, Glen Douglas, Gosport, Kineton, Longtown and Plymouth. Each DM Depot reproduced sufficient hard copies from this for their local needs as appropriate. Main MOD customers and stakeholders were advised of the existence of the Consultative Document on the DM Web Site.

Mr. Key

To ask the Secretary of State for Defence if the Director of Military Operations participated in Defence Munitions Rationalisation Study 2. [68908]

Mr. Ingram

Director of Military Operations did not participate in the Defence Munitions Rationalisation Study 2. The study drew its knowledge of anticipated Tri Service munitions requirements from both the current and future munitions equipment owners who were asked to take into account the latest output from the Ministry of Defence's Stockpile Planning Group.

Other MOD customers and internal stakeholders (particularly Strike Command given the nature of the RAF tasks currently undertaken at Defence Munitions Dean Hill) have been made aware of the proposal to close DM Dean Hill.

Mr. Key

To ask the Secretary of State for Defence what assessment he has made of whether the recommendations of Defence Munitions Rationalisation Study 2 will achieve a 20 per cent reduction in operating costs by March 2004. [68914]

Mr. Ingram

Defence Munitions is part of the DG Defence Supply Chain (DG Def SC) that, in turn, is part of the Defence Logistics Organisation. Defence Munitions Rationalisation Study 2 identified a number of potential efficiency initiatives pertinent to the Defence Munitions environment, including the proposal to close Defence Munitions Dean Hill. Taken together as a package these initiatives will, if implemented, contribute towards the DG Def SC Strategic Plan which is designed to deliver a 20 per cent reduction in operating costs by Financial Year 2005–06.

Mr. Key

To ask the Secretary of State for Defence what modifications were made to the terms of reference for Defence Munitions Rationalisation Study 2 after 11 September 2001. [68913]

Mr. Ingram

There were no modifications made to the Terms of Reference for the Defence Munitions Rationalisation Study 2 after 11 September 2001.

Mr. Key

To ask the Secretary of State for Defence when the team responsible for Defence Munitions Rationalisation Study 2 presented their final report. [68910]

Mr. Ingram

The Defence Munitions Rationalisation Study 2 presented their final report to the Defence Munitions Management Board in February 2002. There then followed an internal Departmental approvals procedure which culminated in a submission to Minister (Armed Forces) in June 2002.

Mr. Key

To ask the Secretary of State for Defence whether Defence Munitions Rationalisation Study 2 included a strategic analysis. [68909]

Mr. Ingram

Defence Munitions Rationalisation Study 2 was in itself a strategic analysis of the Defence Munitions business. Among those elements addressed were:

  • Capacity versus long-term liability
  • Risk to outputs
  • Uniqueness of facilities
  • Transferability of tasks
  • Proximity to customers
  • Health and safety and explosives safety regulations
  • Scale and quality of facilities
  • Cost of transferring tasks
  • Remediation
  • Potential savings to operating costs
  • Potential site realisable value

Mr. Key

To ask the Secretary of State for Defence if private sector commercial advice was sought by(a) Defence Estates Organisation and (b) the Defence Munitions Rationalisation Study 2 team in their assessment of the likely sale value of Dean Hill Munitions Depot. [68911]

Mr. Ingram

In June 2001 Defence Estates South West were requested to provide an outline desktop valuation of the Dean Hill Munitions Site to inform the Defence Munitions Rationalisation Study 2 Investment Appraisal. Given the nature of the valuation requested no external advice was sought.

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