Maria Eagle – 2016 Parliamentary Question to the Ministry of Defence

The below Parliamentary question was asked by Maria Eagle on 2015-12-16.

To ask the Secretary of State for Defence, what estimate his Department has made of the cost of making the Defence Infrastructure Organisation government-owned contractor-operated.

Mark Lancaster

The Defence Infrastructure Organisation (DIO) has been led by a Strategic Business Partner (SBP) since September 2014. The SBP contract allowed for the Ministry of Defence (MOD) to instruct the incorporation of DIO as a Government-owned company (GovCo), subject to a value for money review.

I announced the conclusions of the review in my written statement of 10 December 2015 (Official Report, columns 55-56WS). The GovCo model would have been led by the SBP but 100% owned by the Secretary of State for Defence. A GovCo is distinct from a Government-owned contractor-operated organisation (GOCO) which has a different legal construct. The MOD has never proposed for the DIO to become a GOCO.