§ Mr. Ernie Ross
To ask the Secretary of State for Defence if he will make a statement on the formation of the Defence Storage and Distribution Agency; and what key targets have been set for 1999–2000. 
§ Mr. Doug Henderson
The formation of the new Defence Storage and Distribution (DSDA), for the storage and distribution of non-explosive stores, was announced as part of the Strategic Defence Review. The DSDA will form on 1 April this year incorporating the majority of the Army Base Storage and Distribution Agency, storage functions at RAF Stafford, the Central Services Establishment at Llangennech and the Procurement Executive Storage Depot at Aston Down. The Chief Executive has been set the following Key Targets for 1999–2000.
Key Target 1:
To meet customers' requirements as specified in Customer Supplier Agreements (CSAs), against the following standards:
at least 95 per. cent of issues to consumers to be within specified supply chain processing times;
at least 95 per. cent of receipts to be processed within agreed time limits;
no more than one in every thousand issues to be subject to an accepted discrepancy report;
the level and value of stock written off as a result of DSDA actions to be less than agreed levels.
Key Target 2:
To achieve and average 2.5 per. cent reduction in the unit cost of output.
Key Target 3:
To achieve an average 5 per. cent reduction in receipts processing times.
Key Target 4:
To achieve a 2.5 per. cent reduction in the cost of quality failures.
I have endorsed the Framework Document and Corporate Plan for this new Agency and will place copies of these documents in the Library of the House.