Boscombe Down Privatised - Pensions Dispute

Military Airfiled Status not confirmed

Ministers have confirmed in Parliamentary Answers to Salisbury MP Robert Key that "early in the new year" this country's only independent aircraft testing and evaluation establishment will be privatised. NewDERA, which includes Boscombe Down, will be separated from the part of DERA retained by the Ministry of Defence (R.DERA - which includes Porton Down).

A period of shadow operation will follow and at the point of Vesting (under the Companies Act 1985), probably on 1st April 2001, it will become a PLC wholly owned by the Government.

Later, according to prevailing market conditions, NewDERA will be floated on the stock market - or failing that the Government will get it off their hands by selling to a "strategic investor".

Ministers also confirmed to Robert Key that from 1st April 2001 three-quarters of DERA employees (about 9,000 people) will cease to be civil servants and their pensions will be transferred to the private sector. Robert Key said, "There is real concern about pensions amongst the workforce. They joined as civil servants knowing that pay would be low but the pension would be reliable. I fear this will be a re-run of the NATS (Air Traffic Control) dispute."

Ministers also confirmed to Robert Key that they have still not decided on whether the privatised Boscombe Down will remain a military airfield or become a civil airport subject to CAA regulations.

Robert Key said, "This privatisation was never in the national interest. There is no defence advantage. It is wholly Treasury-driven. The process is recklessly erratic and the timescale is unrealistically tight. The Government is blundering on, putting at risk not just the livelihood of 9,000 dedicated civil servants but also the national interest in aircraft development, testing and evaluation."

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