PRIVATISATION OF DEFENCE PROCUREMENT

That this House is concerned by the Government's proposals within the Defence Reform Bill to privatise 75 per cent of defence procurement and create a GoCo (Government-owned Contractor-operated) organisation; notes that the introduction of GoCos in defence procurement in other countries, including the US, has failed; is further concerned by the clear conflict of interests, lack of accountability, tax liabilities and the ability of a GoCo to deliver during periods of conflict; recognises that a nine-year contract will be a major problem should any future Government subsequently wish to buy out of it; and calls on the Government to re-assess its plans and ensure that defence procurement stays within the public sector.