(2) what the estimated cost is of closing the Defence Storage and Distribution Agency site at Colchester; and what the projected annual effect on costs is following its closure.
The estimated cost to close eight Regional Distribution Centres (RDCs) and centralise transport operations mainly at Bicester and Donnington is £512,000, plus an amount for any compulsory redundancy payments that might prove necessary where affected staff cannot be redeployed.
The projected annual cost saving of closing the eight RDC’s is £2.44 million.
The costs of closure of the Colchester RDC will arise mainly from redundancy payments should they be required. There may also be some minimal costs associated with relocating vehicles and mechanical handling equipment. The annual cost saving after closing the Colchester RDC will be £260,000 per year.
There are now 15 permanent Defence Storage and Distribution Agency (DSDA) staff based at Colchester potentially affected by the proposals to close the Regional Distribution Centre, however this is still subject to TU Consultation. The Future Defence Supply Chain initiative announcement in July 2005 stated that 12 posts would be lost.
DSDA is actively engaging with the Colchester Garrison and other local government establishments, to identify possible posts within their organisations for DSDA staff not wishing to seek voluntary redundancy. A preference exercise will identify individuals wishing to secure early release and voluntary redundancy, with compulsory redundancy being the last option.
The closure of the Regional Distribution Centre at Colchester is projected to be complete by April 2008. However, the decision is still subject to TU Consultation and final ministerial endorsement.