UK Ministry of Defence, Two of the Ministry of Defence's trading funds, the Defence Aviation Repair Agency (DARA) and the Army Base Repair Organisation (ABRO), are to be streamlined as the MoD takes the next steps to modernise its logistics support to the Armed Forces, Adam Ingram, the Armed Forces Minister, announced today.
The rationalisations will further improve the support provided to the front line Armed Forces, maintaining or improving operational capability. All savings will be reinvested in Defence.
DARA
Following last November's decision to move Harrier and Tornado GR4 repair work to RAF main operating bases, DARA's fast jet workload at St Athan has reduced. DARA has been unable to secure commercial aviation and engine repair business for its St Athan and Fleetlands (engine repair) sites in a market that is fiercely competitive. As a consequence, the Armed Forces Minister has judged that:
— DARA's fast jet work at St Athan should close from April 2007. Up to 500 jobs will be lost primarily at the site, in addition to the 500 job losses announced in November 2004. Around 350 jobs will be retained at St Athan to continue to work on the VC10 maintenance contract, although this contract will be taken to the market on the same basis as Fleetlands and Almondbank (below). Our aspiration is for this work to remain at St Athan.
— DARA's engine repair work at Fleetlands (Hampshire) should close from April 2007, with the loss of 225 jobs, owing to a loss of contracts in open competition.
— DARA's helicopter repair and associated component businesses (at Fleetlands and Almondbank in Scotland respectively) continue to offer a cost effective repair capability. On the basis of market advice, the MoD will investigate whether a sale of these businesses might deliver a better long-term future for the workforce and improved value for money for Defence. A decision on this is expected by mid-2007.
— DARA's electronic business at Sealand (north Wales) will be retained within MOD ownership. This business provides critical support to our present aircraft and has scope for further growth as the MoD seeks to optimise its future avionics support arrangements.
ABRO
In order to allow ABRO to modernise and to be able to match changes to its workload, the Armed Forces Minister regrets to announce that ABRO sites at Donnington (West Mids), Warminster (Wiltshire) and Colchester (Essex) will close by March 2007. There will be significant rationalisation of the Head Office in Andover.
Depth repair of the armoured fleet will be concentrated at Bovington (Dorset). To provide more efficient support, and to retain capability, ABRO will operate a number of new, smaller facilities close to the Army front-line customer, including in Warminster and Colchester.
Together with efficiencies at other ABRO sites, we estimate that there could be up to around 1200 redundancies spread across ABRO's eight sites, most of which will occur by March 2007. Around 600 of these redundancies will be at the Donnington site.
These changes at ABRO are essential for a number of reasons:
— The Defence Logistics Organisation is introducing reforms to improve the efficiency with which the fleet is managed and maintained;
— ABRO itself has become more efficient in repairing vehicles. For example, Warrior base overhaul times have been cut by nearly half since 2004. ABRO is also facing increasingly direct competition as a result of new and more efficient DLO contracting strategies.
The MoD has no long-term strategic need to retain ABRO within its ownership, however ABRO needs to become significantly more efficient before all or part of it can be considered for sale. This rationalisation is necessary so that ABRO can become leaner and more competitive.
The reduction in surplus capacity will occur without affecting operational capability; ABRO will be able to increase capacity by up to 40 per cent if there is an urgent operational requirement.
Mr Ingram said:
“It is with great regret that I have had to announce job losses at DARA and ABRO. Employees at both organisations have provided the MoD with an excellent service over the years.
“We will help to find those involved alternative employment and we will make every effort to use natural turnover and voluntary redundancy. However, a significant number of compulsory redundancies can be expected.
“We are very mindful of the impact of this announcement on south Wales. We are already working closely with the Welsh Government to minimise the consequences of these necessary decisions.
“We are committed to modernising our Armed Forces. ABRO and DARA are not immune to the difficult changes we have had to make across Defence so that we can make the best use of our resources to support an Armed Forces that is fit for the 21st century.”
Background Information and Notes:
1. All these changes are subject to consultation with the Trade Unions and other relevant bodies, in accordance with Departmental guidelines.
2. ABRO provides depth repair to much of the Army's fleet of armoured fighting vehicles, other military vehicles and fighting equipment.
3. Last November's air depth support announcement has resulted in significantly improved maintenance turnaround times for Harrier aircraft, with, on average, an additional 11 aircraft available to the front-line at any one time.
4. The 2004 Spending Review cemented the longest period of sustained real growth in defence spending plans for over 20 years. In real terms, defence spending will be 7.5 per cent higher than in 1997 by 2007. The 2005/06 Defence budget is
