MoD poised to privatise part of troubled defence procurement process
Announcement expected to say that everyday management of Defence Equipment & Support will be handed to private sector
Ministers are poised to announce the next stage of controversial reforms that will give private firms a chance to run the organisation that buys and supplies billions of pounds' worth of defence equipment to the British military.
The Treasury has given the green light to proposals that will open up the possibility of part-privatising Defence Equipment and Support (DE&S), the body within the Ministry of Defence in charge of procuring everything from new warships to lightbulbs.
Despite concern from union leaders, experts and former military personnel, the plan has been under consideration for almost a year as ministers and senior civil servants grapple with ways of saving money within defence.
With an annual budget of £15bn and 15,000 staff, DE&S plays a crucial role for the MoD, and no other nation has ever privatised such an integral part of the military machine.
But DE&S has been criticised for allowing expensive projects to run out of control, partly because of too much meddling from military commanders, prompting defence secretary Philip Hammond to consider private sector involvement.
In an announcement expected on Thursday, ministers will say they are pursuing reforms in which DE&S will remain government owned, but not government run. Day-to-day management would be undertaken by a private company, possibly from abroad.
Meh
46 minutes ago
8 comments:
Yeah, they could always set up a new department in the MoD to regulate the newly privatised DE&S and then, in due time, privatise that as well, then set up a new department to monitor the comapany that's monitoring the comapny that's buying the stuff for the MoD. The possibilities are endless. Or they could just give military commanders a budget and tell them to get on with buying the stuff they need.
B, or as DBC has suggested (not entirely in gest), just sub-contract all warfare to the private sector and pay by results.
They could start by employing The General.
Our MoD pisses £30 billion up the wall every year, for £0.5 billion, The General promises to take over a whole oil-exporting country.
Precisely - it's the hangers on who are the issue.
Another point, apart from buying stuff for the military, what does the MoD actually do (apart from consuming vast quantities of taxpayers' cash, that is)?
JH, but who exactly are the "hangers on"?
B, apparently they run a great sports and social club.
OK - the mission, should you chose to accept it, is to go here
Defence procurement reform needed to improve value for money and defence capabilities - Murphy (http://www.labour.org.uk/defence-procurement-reform-needed)
read what shadow defence Minister Jim has to say and then decide is Jim/Labour
(a) absolutely and totally opposed to the idea
or
(b) keen to be seen flagging up that they have some doubts and that "questions need answering" but otherwise ...
That's handy - the Indie is running an article (http://www.independent.co.uk/news/uk/politics/after-two-years-and-millions-of-pounds-police-computer-plan-is-still-in-limbo-8588845.html) on what we must surely assume is the "model" the MOD have seized on ..
"Nearly two years after the Home Secretary announced plans for the creation of a firm to help police drive down their information technology bills, no date has been fixed for its launch and no details released of how it will operate"
"Mrs May set out plans in 2011 for a Police ICT company owned and led by police chiefs to reform the “confused, fragmented and expensive” way in which forces use computer systems.
"She said the firm would cut the £1.2bn spent by forces on information technology, freeing up chief constables to focus on the front line, and said it was her aim to form the company by spring 2012".
"the Home Office has already run up a bill of almost £2m for lawyers’ and consultants’ advice over the company’s launch".
"They could start by employing The General."
Or this chap: http://en.wikipedia.org/wiki/Lalu_Prasad_Yadav
He turned Indian Railways from making a loss into making over $6Bn in profit, without cutting staff or raising fares.
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