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Proceeding contribution from Lord Watson of Wyre Forest (Labour) in the House of Commons on Tuesday, 18 July 2006. It occurred during Adjournment debate on Defence Jobs.


Defence Jobs

In that case, I am sure that the hon. Gentleman will attend the Amicus meeting straight after this event to put those points. I have a lot to say about defence and jobs in our region, so let me move on. I know that hon. Members want me to talk about the defence training review, and I shall try to get through my comments as quickly as I can so that we can talk about my position on the review at the end. Our goals are ambitious. We have committed ourselves to achieving £2.8 billion of efficiency savings by 2007-08. That money will be reinvested to maximise front-line capability and will come partly from cutting numbers elsewhere. We are committed to reducing the number of civilian posts by at least 10,000 and the number of military posts in administrative and support roles by at least 5,000. As I am sure that the hon. Member for The Wrekin is aware, the Defence Medical Services branch of the Ministry of Defence already enjoys a strong presence in the west midlands. The Royal Centre for Defence Medicine, which is based in and around Birmingham, has recently benefited from a £106 million refit, which I am sure that all hon. Members welcome. That refit was carried out in partnership with the regional development agency. In that respect, perhaps I can answer some of the cogent points raised by the hon. Member for Ludlow (Mr. Dunne), who talked about the ““Let’s Fly”” campaign led by the RDA. That is the west midlands RDA at its best, and I hope that we will be able to stand up for it when we talk about the future of RDAs in other forums, because it is the only body in our region that could mount such a campaign. I know that the hon. Gentleman will want to stand up for RDAs up and down the country, given that some hon. Members believe that there is a question mark over their future. The chief executive of the Defence Medical Education and Training Agency is now leading a programme to improve accommodation and support facilities for military medical personnel in Birmingham and is exploring a number of options to consolidate the command, control and training elements of the Defence Medical Services. That is intended to create an international centre for clinical excellence and to provide a suitable environment for DMETA military and civilian personnel, including those who are currently serving in Birmingham without access to MOD accommodation or facilities. That would result in significant numbers of staff and jobs being relocated to the west midlands from around the country, and I know that all hon. Members will support the Government in trying to achieve that goal. In the few minutes that remain, I should like to move straight on to the defence training review. The in-house bid was not considered appropriate, because it could not have provided comparable technical innovation, performance discipline and risk transfer. The DTR programme is about improving training and its environment, as well as managing the risk of demand ebb and flow without compromising the quality of training. A PPP arrangement will offer the best value-for-money solution, while still meeting the MOD’s critical requirements. Our initial studies identified six streams of specialist training, which are currently being conducted on about 30 separate sites around the country. Together, those streams offered the greatest potential benefits from the rationalisation and harmonisation, and hon. Members have referred to that. Consequently, they have been grouped into two packages for what my officials describe as maximum synergy, or what I would describe as a common-sense solution. Package 1 comprises training for engineering and communications, while package 2 will provide training for logistics, security, policing and administration. Our overall procurement strategy has required bidders to select sites as part of their training proposals. They were given a free hand to decide which MOD or non-MOD sites offered the best solution. That geographical freedom has been essential for bidders to develop coherent value-for-money proposals that take full account of the service training requirement, their training design and delivery solutions, the necessary personnel and skills, and the environment in which solutions would be delivered. There are two bidders for each contractual package. The evaluation process is drawing to an end, and I can provide an assurance that an extensive and robust evaluation methodology has been in place to ensure that bidders’ proposals meet defence requirements and are evaluated on an equitable basis. All factors are being considered. The process has been led by a Ministry of Defence project team, although it has involved several hundred other training and estates subject matter experts. The relevant procurement rules have been carefully applied, and the work has been overseen by our own private finance unit specialists and independent academic experts to ensure there is a level playing field. The project team and those involved in the evaluation have been commended by Professor Molyneaux, the independent auditor of our evaluation process and a leading expert in learning technologies, for operating with the utmost professionalism and objectivity throughout the process. The evaluation process has properly weighted the training element of bidders’ proposals, including the ability to deliver distance learning in front-line command units, above other supporting and enabling capabilities, such as the future estate. It has also strongly emphasized the application of innovation in that process. We therefore have good reason to expect a solution that best delivers value for money for defence specialist training. However, lower-priority factors, such as location, regional economic and sociological impacts, transport links and other related points will not be ignored. I am aware, for example, of the proposal to establish a national manufacturing skills academy in the west midlands. We welcome that initiative, which would have a role in achieving the Department’s desire for national centres of excellence as part of preferred bidder negotiations, whichever bidder is successful. As I have explained, I can make only limited comments on any likely use of sites at this competitive phase of the project, as I am sure that hon. Members understand. Those who have spoken have raised several specific points that go beyond the DTR, but I have not been able to cover them, because of time limitations. However, I shall make myself available to anyone who needs me to pick up any of those points afterwards or who needs to write to me. However, I can also assure the House that there is no question of the MOD systematically withdrawing from the west midlands. Many options remain available for the use of existing MOD establishments in the region. I acknowledge that there might well be closures in the future, but we are actively pursuing numerous possibilities. We certainly recognise that change can be unsettling for individuals, so staff and the trade unions are being kept closely informed of the latest developments. To conclude, I congratulate the hon. Member for The Wrekin on allowing us to talk about the excellent future that defence has in the midlands. I also congratulate all other hon. Members who have made a contribution.


Secondary information

Type
Proceeding contribution
Reference
449 c43-5WH 
Session
2005-06
Chamber / Committee
Westminster Hall
Subjects
Defence Executive agencies Employment Industry Mergers Redundancy Shropshire Telford Defence Logistics Organisation Defence Procurement Agency RAF Cosford
Link
View this Proceeding contribution on www.publications.parliament.uk