MoD backtracks over outsourcing deal

1 Nov 07
Ministers have suspended part of a £14bn plan to privatise defence training after casting doubts over expected savings.

02 November 2007

Ministers have suspended part of a £14bn plan to privatise defence training after casting doubts over expected savings.

Defence minister Derek Twigg announced on October 25 that only part of the Defence Training Rationalisation Programme would now go ahead.

'Package One' of the programme, which would provide training for engineering, communications and information staff, has been signed over to private contractor Metrix and construction on the training site begins in 2009, Twigg said.

But he revealed that 'Package Two' of the programme would be put on hold – and possibly retained within the Ministry of Defence. That contract was also due to go to Metrix and would have provided training for other staff, such as the military police, security, languages, intelligence and photography staff.

However, Twigg said ministers were not certain that the savings required for the second contract were achievable, nor that Metrix would provide adequate facilities.

He added: 'We therefore continue to consider a range of options for Package Two. These range from adaptations of Metrix's original proposals through to full conventional procurement.'

The Public and Commercial Services trade union, which represents many of the staff involved, described the decision as a 'welcome U-turn'.

PFnov2007

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