29 Jan 2015

Commercial defence partners sought ahead of UK General Election

contract_5206645MedSummary: Defence Secretary Michael Fallon has said that further defence privatisation will occur before the 2015 General Election in May.

Mr Fallon said that three more defence assets will be put out to commercial partners as part of the privatisation drive.

Since 2010, the Coalition Government has brought several private partners into the MOD to help run its property estate, procurement functions and to repair army vehicles.

Mr Fallon announced plans to bring in commercial partners to run a military port at Marchwood in southern England and to run and operate a pipeline storage system, with preferred bidders to be announced before the end of March.

A further partner to reform the military’s logistics and supplies organisation will also be announced.

Mr Fallon said: “With continuing demands on our resources, with the cost of manpower and equipment rising, with competition from emerging nations increasing, efficiency in defence cannot be a one-off.

“Every year we should be looking to take out unnecessary cost, to improve productivity, and to sweat our assets so we can better support the frontline.”

Labour Shadow Defence Secretary Vernon Coaker said: “We welcome moves to release assets to generate maximum capabilities for the UK’s armed forces.