§ Patrick MercerTo ask the Secretary of State for Defence what measures of efficiency are used within the Defence Logistics Organisation; and on which occasions these measures have not been met in the last three years. [88409]
§ Mr. IngramThe Defence Logistic Organisation has since its formation on 1 April 2000 continued to contribute to the overall Year on Year Departmental Efficiency Target set as part of the Comprehensive Spending Review of 1998 and reported annually via the Departmental Performance report. Prior to 1 April 2000 Efficiency reports against the Departmental Target were the responsibility of the individual logistic Commands, Naval Support Command, Quartermaster General and Air Member Logistics.
The individual DLO efficiency measures that contributed to the overall Departmental efficiency target for these years also contribute to the DLO's strategic goal, a 20 per cent. reduction in DLO output costs (as at March 2000) by 31 March 2006. Examples of the types of measure are contained within the latest Ministry of Defence Departmental Performance Report 2001–02 paragraphs 75 and 110 (available at the MOD website at www.mod.uk). From March 2000 to March 2002 the DLO has made a 5.6 per cent. efficiency saving in resource terms against its strategic goal. We have now agreed with the Treasury how the efficiency achievement in financial year 2002–03 will be measured, and we are currently discussing with them how performance against the remainder of the strategic goal (from 2003–04 onwards) will be measured.