My noble Friend the Minister for Defence Equipment and Support has now approved, effective from 11 December 2007, the early closure of the Defence Storage and Distribution Agency (DSDA) Regional Distribution Centres (RDCs) at Longmoor, Shorncliffe, Llangennech, Bulford, Catterick, Chilwell, Colchester and Stirling.

Under the Future Defence Supply Chain Initiative (FDSCi), the MOD assessed a range of options for managing and operating the defence supply chain, to reduce the cost of ownership, while maintaining or improving service levels, and enhancing operational capability. DSDA’s new plan makes greater use of Donnington and Bicester, cutting out the need for a number of RDCs. Much material will be delivered direct rather than through a regional hub and is more sophisticated in selecting how material flows are routed; DSDA has also opened a warehouse for fast-moving items at Donnington and more than 50 per cent. of all DSDA deliveries will be from this new facility. This will provide the opportunity for material to be delivered direct rather than through an RDC, and for flexible decisions to be taken as to whether an item is posted, handled by a parcel or pallet carrier, delivered direct, or delivered as part of a multiple delivery route.

I recognise that this will not be a welcome prospect for those staff who stand to be affected. It is not possible to give an absolute assurance that compulsory redundancies can be avoided, although every effort will be made to do so. The MOD Outplacement Service (MODOPS) will be available to support staff affected by the closure, offering support with relocation and financial advice. Training will be available to assist staff with the transition to life in the private sector and services of the MOD Welfare organisation will also be available to help staff with personal circumstances.

Consultation with the trade unions has been completed, during which time a counter-proposal was received. However this was not operationally or financially viable. On this basis, I have decided to fully endorse the closures of the RDCs.