Following a wide-ranging consultation exercise on Public Private Partnership proposals for the Defence Evaluation and Research Agency, Defence Secretary Geoff Hoon today announced that he has decided to widen the scope of the discussions and carry out further work.
Answering a Parliamentary Question from Rachel Squire MP (Dunfermline West), Geoff Hoon said:
"Following the announcement on 6 July that further discussions with stakeholders were continuing, we have held consultations with interested parties, including UK industry, our international partners, DERA staff and Trade Unions. In response to the feedback we have received, and a number of views expressed, we have decided to widen the scope of these discussions to address the issues raised in the consultation process. We will now undertake further work on these issues. This process will continue into the New Year.
"We continue to work positively for a PPP result which will strengthen DERA's ability to continue to provide world class scientific research and enable it to be a flexible and responsive organisation which can attract investment and develop new business, while at the same time preserving our essential defence interests and maintaining our valuable collaborative relationships."
Background Notes:
**In July 1998 the Strategic Defence Review (SDR) announced: "We will harness the opportunities offered by a public private partnership (PPP) to strengthen the Defence Evaluation and Research Agency's ability to continue to provide world class scientific research well into the next century."
**In September 1998, the MOD established the DERA Partnering Team (DPT) to carry out a wide-ranging Options Study to identify the full range of possible PPP solutions and assess their ability to meet MOD's future needs in a cost effective way. At the end of March 1999 the team advised Ministers that, before a final recommendation could be made on a single option, a wide-ranging consultation exercise was required with key external stakeholders. Consultation focused on a PPP option which had the potential to best meet MOD's objectives, although it was always recognised that it was not without risks that needed to be tested during consultation.
**The consultation process has been very helpful, with detailed contributions from all stakeholders including UK industry, international partners, DERA staff and Trade Unions. All have emphasised the important role which DERA plays in supporting the MOD. It has, however, become clear that the proposal raised significant issues which need to be resolved. Ministers have therefore decided to widen the scope of these discussions to address the issues raised in the consultation process. DERA is key and it is important to get this right.
**The valuable work that has been done to date has emphasised the need for change, explored many of the key issues in great depth, and laid valuable foundations for future work. Ministers are confident that a PPP solution can be found which can be successfully implemented while meeting the Government's objectives. As a result, the Government remains committed to a PPP for DERA. Discussions with stakeholders will continue through the next phase of work which will continue into the New Year.
