Vol. 426 No. 6
38 Mr. Rabbitte asked the Minister for Defence if, in view of the comments of the Comptroller and Auditor General that the value of the stocks held by the Army were unknown and that as obsolete stocks were not systematically reviewed this could contribute to excessive holdings costs, he will give details of the steps, if any, which are being taken to review stock control systems to ensure more efficient procedures; and if he will make a statement on the matter.
The report of the Comptroller and Auditor General acknowledges that considerable improvements have taken place in recent years in the stores area as evidenced by: a reduction in the level of stocks held in some areas — partly due to management initiatives; the provision of purpose-built stores accommodation; and information technology developments.
Existing arrangements provide for annual stocktaking by the military authorities at all stores, with the exception of the main technical stores at which stocktaking is carried out on an ongoing basis over a period of two years. A requirement of these stocktakings is the identification of any obsolete items with a view to their disposal. In general, it is desirable for security reasons not to publicise particulars as to the value/quantity of defence equipment and military stocks, including weapons and ammunition.
The major computerisation programme in relation to the military logistics system, which is at present being implemented, will greatly enhance the efficiency and effectiveness of the military stores system.
The Comptroller and Auditor General indicated in his report that there was an estimated £22 million of obsolete stock. No specific account was kept. Could the Minister indicate whether that problem which the Comptroller and Audior General identifies is being dealt with? It was also indicated in that report that optimum use was not made of the storage facilities available.
I assure the Deputy that the matter raised by the Comptroller and Auditor General is being dealt with in considerable depth. I did not understand the second part of the Deputy's question.
According to the report, new storage facilities had been provided but they were not used to the optimum and because of the failure to identify on an ongoing basis what was obsolete stock and what was necessary to hold, in some cases stock levels on what might be regarded as non-security items were as high as four years.
I cannot agree with the Deputy's figures. I am sure the Deputy will let me know where he got them. This is a very serious matter. I will get the required information for the Deputy and make it available to him.
