ECONOMIC STRATEGY SUB-COMMITTEE
 
3RD OCTOBER, 1991
 
DEFENCE REVIEW
 
REPORT OF THE COUNTY CHIEF EXECUTIVE
 
 
     Introduction
 
1    Changes in defence spending are likely to have consequences for
     Hampshire where the Ministry of Defence is the largest single
     employer.  This report briefly reviews the possible consequences
     of defence changes and action being taken by the County Council.
 
     Defence Changes
 
2    The following announcements by the Secretary of State for
     Defence in July, 1991 exemplify the changes taking place:
 
     *    The Rosyth-based squadron of four Type 42 destroyers (HMS
          York, Glasgow, Liverpool and Edinburgh) will be redeployed
          to Portsmouth which will become their base port.  This will
          allow the support activity for Type 42s to be concentrated
          in Portsmouth.  This move will take place progressively
          from mid 1993 to late 1994.  About 1,100 service personnel
          will relocate to Portsmouth.
 
     *    The Gunwharf site at HMS Nelson in Portsmouth is to be
          sold.
 
3    Retrenchment means that MOD will concentrate its resources in
     fewer places around the country as a whole, notably in the
     Portsmouth and North East Hants areas.   Some loss of jobs is
     involved, for example around 60 civilian posts at HMS Daedalus
     and some 35 contract staff at Gunwharf could go.  However, if
     the County Council helps MOD to rationalise and make best use of
     its resources in Hampshire and if effective use is made of land
     releases, then the changes could make a positive contribution to
     the county, its environment and its economy.
 
4.   Although a large reduction in overall Army manpower is planned
     the greater part will be against the British Army on the Rhine.
     The effect on the size of the Hampshire garrisons is likely to
     be very slight.   Some increase in numbers may even be possible.
 
5.   The Services have indicated that they will revise their housing
     policies to encourage home ownership by Servicemen.  If this
     means promoting house purchase by the provision of subsidies or
     favourable financial terms it could have an effect on the local
     housing market.
 
6    The effects of the "peace dividend" on defence contracting are
     much more uncertain.   The County Council's encouragement of
 
     diversification over the years will certainly help to "turn
     swords into ploughshares".
 
     Key areas for County Council action
 
7.1  Ensuring that County services respond - the County Council is in
     touch with the Army at Aldershot and the Naval base at
     Portsmouth to ensure that as far as possible County services are
     geared to the changing requirements of MOD.
 
7.2  Structure Plan - MOD has drawn up in consultation with the
     County Planning Officer (and through him with the district
     council planning officers) a schedule of land which MOD may
     consider for release in the County.  Land releases in the urban
     areas will provide opportunities for housing, commercial,
     leisure facilities and open space.
 
7.3  Defence Heritage - the County Council has pioneered the
     Hampshire and Isle of Wight Defence Heritage Project.   This has
     proved an extremely successful initiative and has the full
     support of the Ministry of Defence.  It now needs to move into a
     higher gear to facilitate further development of this aspect of
     tourism in the county.  The project officer attended the last
     meeting of this Sub-Committee and her full report on the future
     of Defence of the Realm (the strategy and marketing plan for
     1991-1993) is available in the Members' Room.
 
8    It is RECOMMENDED
 
     That the County Council continues to work closely with MOD to
     ensure that as far as possible strategic bases are retained in
     Hampshire.
 
 
5mR45891

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