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Fleet operators save the MoD millions

11th February 1999, Page 46
11th February 1999
Page 46
Page 46, 11th February 1999 — Fleet operators save the MoD millions
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Which of the following most accurately describes the problem?

• The Ministry of Defence has already saved millions of pounds through the Public Finance Initiative. In a PFI, the existing assets are taken over by the contractor; the firm may also supply new equipment Additionally, the contractor covers all maintenance and ser

vicing requirements, and may also provide drivers.

The Moll is already reaping the rewards. Since Ryder Defence and PHH Vehicle Management provided "white" (non-military) vehicles for the British Army in Germany in February 1996. the MoD has made savings of 27%. Similarly; the takeover of RAF cars and light vans in the UK by Lox Services has saved the ministry 15%.

There are currently 1,600 HMIs in the white sector of the British military which have been earmarked for PFI.