House of Commons
London SW1A 0AA

4 July 2006

The Chairman
Wilton Town Council

Dear Chairman,

Re-location ofHQ Land from Wilton to Andover

Following yesterday's announcement that the Ministry of defence has decided to move HQ Land from Wilton, I want you and Wilton Town Council to be the first to know what is going on as far as my responsibilities are concerned. Accordingly I attach a letter to me from the Minister of State for the Armed Forces and a copy of the Secretary of State's Written Statement to the House of Commons yesterday.

Two years ago, as part of the Government's 'Gershon' defence rationalisation, we were told there would be a reduction in the size of HQ Land and that re-location was under consideration. I have been tracking events and I have been briefed by the Hyperion Team at Upavon. If the MoD decided to leave Wilton, I ensured they were in no doubt of the impact on the Town and community of Wilton. In the event of their departure I have also sought to promote consideration of an alternative site within the Salisbury travel-to-work area- namely Solstice Park at Amesbury.

The Minister's letter states that the MoD has not identified any future Defence use for Wilton. They do not rule out the possibility that a defence use might be found - but the assumption is that the site will close from March 2009. However, the married quarters will be retained for MoD use.

Wilton Estate has not sought this move by the MoD. Two years ago I sought to clarify whether or not the Erskine Barracks land would revert to the Estate under the Crichel Down Rules. As of today, and having talked to the Resident Agent of the Wilton Estate, this has still not been clarified. It is a very complex matter.

The leader of Salisbury District Council, Cllr Richard Button, has already appointed a Project Officer within the Planning Department - Mr Steve Milton. They fully understand the importance of working closely with all the stakeholders, especially Wilton Town Council.

On Thursday of this week I intend to speak in the Debate in The House on the Armed Forces and I will raise directly with Ministers and with Parliament the impact on the whole community of Wilton of this far-reaching decision. I will point out that Wilton has hosted the Army in Wilton for nearly seventy years, during which time the military and civilian communities have become closely intertwined and mutually dependent. It is imperative that Wilton is not just a bystander in this momentous decision - but must feel real ownership of plans for the future of this ancient and prosperous community.

Please keep in touch. I am at the service of Wilton to ensure the best possible outcome to this unwelcome decision of the Government.

I understand that there is a meeting of the Town Council tonight. I would be grateful if you would be so kind as to communicate this information to your Councillors and the Wilton community

With best wishes,

Robert Key MP

3 July 2006

Dear Robert,

As you are well aware, Headquarters Land Command and the Adjutant General's Headquarters have been formulating plans for the integration of the two Headquarters under Project HYPERION, to form a new Headquarters Land Forces. I know that this issue is important to you and your constituency, and I wanted to let you know personally that the existing MOD site at Andover South has been chosen as the preferred site for the new Headquarters.

As I am announcing in the House today, the Andover South Site will become available as a result of plans for the collocation of the Defence Procurement Agency and the Defence Logistics Organisation in the Bristol/Bath area. Subject to planning permission, Trade Union consultation and final decisions which we expect to take next year, we envisage that Headquarters Land Forces will be fully operational at Andover in Spring 2009. We have, of course, considered a number of options, some local and others further afield, including commercial sites, but Andover has proven the best value for money and meets all our business needs.

As things stand, we have not identified any future Defence use for the Wilton or Upavon sites. I do not rule out the possibility that a use will be identified, but at present our assumption is that both sites will close once the new HQ is fully operational at Andover. However, we will retain the Married Quarters at both sites.

I am very conscious that this decision will impact on employees and their families in those locations affected, although it is also worth noting that a significant proportion of staff at Wilton and Upavon already live within the Travel-To-Work area for Andover.

We currently envisage that the new HQ will have some 1,750 personnel, involving a reduction of about 100 military and 240 civilian posts which have already been announced in 2004 as part of wider defence rationalisation under Gershon. Our aim will be to manage this process as sensitively as possible and provide all appropriate support to our staff. This will include full consultation with the Trades Unions both at local and National level.

I Will, of course, keep you up to speed on any further developments.

The Rt Hon Adam Ingram MP

MINISTRY OF DEFENCE

Modernising Defence

The Secretary of State for Defence (The Rt Hon Des Browne): At a time when our Armed Forces are conducting operations around the world, it is important that the Ministry of Defence (Department) seeks every opportunity to ensure that every pound of the tax payer's money devoted to defence is used to best effect. I am therefore announcing a number of improvements to the way in which we use that money.

Subject to consultation with the Trades Unions, we propose to make a number of changes to the organisation and processes by which we manage defence. Together, these changes will lead to better delivery of support to our Armed Forces and the front line.

In December 2005, the Department published the Defence Industrial Strategy (Cm 6697). The Defence Industrial Strategy set a challenge for both industry and the Department. We are asking industry to work more effectively with us, and in a number of sectors, to restructure better to meet our needs. We are working closely with them to achieve this. Equally, the strategy calls on the Department to make a step change in the manner in which it conducts the acquisition and management of military capability. In response, a senior official was appointed in January 2006, to conduct a review of current structures, organisation and processes to determine whether these support, encourage, hinder or obstruct the Department's ability to deliver Through Life Capability Management. The report - 'Enabling Acquisition Change' - has now been presented to Ministers who, subject to consultation with the Trades Unions, have accepted its recommendations. A copy of the report has been placed in the Library of the House of Commons, and also can be viewed on the Department's website.

The report stresses both the primacy of through life considerations and that improving acquisition skills is critical to success. It recommends changes to the Department's planning processes, including to the part played by the Front Line Commands, and the governance of acquisition. These changes are designed to facilitate Through Life Capability Management and to make the Department more agile against a background of rapid changes in the security environment and technology. The review also concluded that the Department should build on the progress made by the Defence Procurement Agency and the Defence Logistics Organisation to work more closely together by merging them. This will remove a fundamental barrier to Through Life Capability Management: the continued existence of two organisations with separate identities and cultures, one that procures military capability and the other that supports it.

The new organisation will take the best from each organisation and form a single entity responsible for the procurement, maintenance and sustainment of military capability, continuing to draw on the private sector where this will provide , best value for money. Its fundamental ethos will be the delivery of equipment and logistics capability to the front line and for operations. The Chiefs of the Defence Logistics Organisation and the Defence Procurement Agency will jointly be responsible for creating the new organisation by April 2007. Arrangements will be put in place to run the new organisation under a unified management structure over the following 12 months while the new organisation establishes itself. An open competition will be run to appoint, from April 2008, the head of the new organisation.

Implementation of the recommendations will represent a significant change programme for the Department. Ministers and senior management are committed fully to taking it forward as swiftly as possible. However, throughout this period of change, delivering new capability and maintaining support to the front line will remain paramount.

Consistent with the decisions set out above and the commitments announced in the July 2004 White Paper "Delivering Security in a Changing World: Future Capabilities", I have decided that steps should be taken, again subject to consultation, to collocate elements of the Defence Logistics Organisation with the Defence Procurement Agency in the Bristol/Bath area. This will be a key part of the programme of improving efficiency and effectiveness across the Department in order better to support our Armed Forces. Collocation, which is estimated to produce savings of around £200 million over a 25 year period, will result in a reduction of 360 civilian posts. A farther 100 military posts will be civilianised.

This decision involves the DLO withdrawing from a number of sites over the next five years. Initial withdrawals are planned from Andover South and Sapphire House, Telford; with subsequent withdrawals planned from RAF Brampton, Caversfield and Sherbome. The DLO will also drawdown from RAF Wyton. A presence is planned to be retained at Andover North, from where the Supply Chain will be controlled.

I can also confirm that Andover is the preferred site option for the new Headquarters Land Forces which will be formed from the integration of Headquarters Land Command, currently based in Wilton, and the Adjutant General's headquarters, currently based at Upavon. Subject to further work and final decisions next year, we envisage, from 1 April 2009, Headquarters Land Forces will be fully operational at Andover. This will provide the Army with a contemporary, integrated and efficient headquarters of about 1,750 military and civilian staff. Compared to current headquarters staffing levels this represents a reduction of about 240 civilian and 100 military posts and we expect this to be accompanied by a significant reduction in running costs.

Separately, I have also approved, subject to consultation, proposals to relocate to RAF Wyton those staff at RAF Brampton not affected by DLO/DPA collocation. This will enable the disposal of the Brampton site, unless an alternative defence use can be found, with attendant reductions in the Department's running costs. These changes will lead to a reduction of between 50 and 100 posts, mostly civilian contractors.

I recognise that these decisions affect a large number of the Department's employees and their families. I would like to place on record the Government's appreciation of their hard work and dedication. The Department will work to minimise the impact by providing all the help it can for those affected, and avoiding compulsory redundancies where possible.

The Department is committed to modernising the way in which we deliver new equipment and support to the Armed Forces. In order to do this we must continually examine the way we do our business to improve the resources available to the front line. These changes are an essential part of that strategy.

Monday 3rd July