On 9 June 2014, Official Report, column 23WS, the then Secretary of State for Defence, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), announced the intention to examine whether the Defence Infrastructure Organisation (DIO), currently part of the Ministry of Defence, should incorporate into a Government-owned company in 2016.
We have completed this assessment and concluded that, at the present time, the MOD’S business interests are best served by the DIO retaining its current status within the Department. We assess that this will achieve further transformation by delivering rationalisation and improvements to the way the DIO delivers infrastructure to support defence capability, without the risks and costs associated with incorporation. We shall, therefore, not be pursuing incorporation.