Better Defence Acquisition Debate

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Department: Ministry of Defence

Better Defence Acquisition

Penny Mordaunt Excerpts
Monday 10th June 2013

(11 years, 6 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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The hon. Gentleman and the House might be interested to know that of the 21 expressions of interest that we have received in response to the issue of the pre-qualification questionnaire, a third have been UK-headquartered companies, but it is likely that the winner of a competition for a GoCo will be a consortium and it is highly likely that some members of that consortium will be non-UK companies. In fact, to be frank, it is highly likely that it will include US-headquartered companies, but the entity with which we contract will be UK-registered and domiciled, and will pay its tax in the UK.

Penny Mordaunt Portrait Penny Mordaunt (Portsmouth North) (Con)
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I congratulate the ministerial team on its progress on this important matter. DE&S covers Her Majesty’s Navy bases. Will the Secretary of State reassure me that his announcement today will not affect the proposal to transfer them to the Royal Navy?

Lord Hammond of Runnymede Portrait Mr Hammond
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I can assure my hon. Friend that the plan to transfer the Royal Navy dockyards out of DE&S, along with the plan to transfer the logistics and commodities supply service out of DE&S to an outsource contractor, will continue on track. That is why there is a gap between the projected 2015 total numbers of DE&S on a steady state basis, and the 8,000 that we are expecting to transfer under a TUPE transfer if we go down this route.