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| Version 1 | Version 2 |
|---|---|
| Plan to privatise defence procurement to be 'scrapped' | Plan to privatise defence procurement to be 'scrapped' |
| (5 days later) | |
| Plans to privatise the UK government's defence procurement arm are set to be scrapped, the BBC has learned. | Plans to privatise the UK government's defence procurement arm are set to be scrapped, the BBC has learned. |
| The Ministry of Defence could make the announcement next week, sources said. | The Ministry of Defence could make the announcement next week, sources said. |
| The MoD had been considering replacing the Defence Equipment and Support agency - which buys armed forces equipment - with a "government-owned, contractor-operated" (GoCo) body. | The MoD had been considering replacing the Defence Equipment and Support agency - which buys armed forces equipment - with a "government-owned, contractor-operated" (GoCo) body. |
| Two of three consortia interested in the contract have now withdrawn. The MoD said no decision had been made. | |
| Labour said it looked like "another embarrassing U-turn for the government". | Labour said it looked like "another embarrassing U-turn for the government". |
| The Bristol-based Defence Equipment and Support agency has an annual budget of £14bn to buy equipment, including ships, aircraft and weapons for the armed forces. | The Bristol-based Defence Equipment and Support agency has an annual budget of £14bn to buy equipment, including ships, aircraft and weapons for the armed forces. |
| 'Active competition' | 'Active competition' |
| As part of Defence Secretary Philip Hammond's desire to make the MoD more cost-efficient, a number of options were being considered, including running it as a quango in partnership with a private contractor as well as a "GoCo". | As part of Defence Secretary Philip Hammond's desire to make the MoD more cost-efficient, a number of options were being considered, including running it as a quango in partnership with a private contractor as well as a "GoCo". |
| A source told the BBC: "We always wanted to ensure we got the best competition possible. We wanted a number of consortia in an active competition but we have been left with just one. | A source told the BBC: "We always wanted to ensure we got the best competition possible. We wanted a number of consortia in an active competition but we have been left with just one. |
| "Although no final decision's been taken it's looking increasingly likely that the defence secretary will end the commercial competition." | "Although no final decision's been taken it's looking increasingly likely that the defence secretary will end the commercial competition." |
| The source said ministers would make an announcement to "clarify the situation, as soon as possible" but added that "there were still a couple of tunes that could be played on this particular fiddle." | The source said ministers would make an announcement to "clarify the situation, as soon as possible" but added that "there were still a couple of tunes that could be played on this particular fiddle." |
| Labour's shadow defence minister, Alison Seabeck, commenting on the speculation said: "This looks like another embarrassing U-turn from a government that doesn't listen. | Labour's shadow defence minister, Alison Seabeck, commenting on the speculation said: "This looks like another embarrassing U-turn from a government that doesn't listen. |
| "Despite Labour's warnings about poor management of the process and the serious concerns raised about its viability, ministers continued to insist that everything was fine. | "Despite Labour's warnings about poor management of the process and the serious concerns raised about its viability, ministers continued to insist that everything was fine. |
| "That was clearly wrong and it's a combination of incompetence and arrogance that has wasted millions of pounds of taxpayers money. | "That was clearly wrong and it's a combination of incompetence and arrogance that has wasted millions of pounds of taxpayers money. |
| " It has also left the government's plans for much-needed reform of defence procurement in disarray. It's the latest fiasco at the Ministry of Defence on David Cameron's watch." | " It has also left the government's plans for much-needed reform of defence procurement in disarray. It's the latest fiasco at the Ministry of Defence on David Cameron's watch." |
| Last month, former Tory defence minister Lord Lee of Trafford suggested the GoCo was "dead in the water" but at the time the government insisted a deal was still possible. | Last month, former Tory defence minister Lord Lee of Trafford suggested the GoCo was "dead in the water" but at the time the government insisted a deal was still possible. |
| He told peers there were now too few private firms bidding to take over the organisation, which employs 21,000 people across the UK. | He told peers there were now too few private firms bidding to take over the organisation, which employs 21,000 people across the UK. |
| He strongly criticised the MoD's oversight of the project. | He strongly criticised the MoD's oversight of the project. |