CONFIDENTIAL
2ND DRAFT
28.
Improvements to management systems include new procedures l'or
dockyard resources allocation, refit planning and production control.
Action is being taken to introduce a separate Dockyard Vote into the
Defence Estimates for 1976-77. This will provide both for more
rapid accountability from the Dockyard organisation to Parliament,
and also for a powerful financial stimulus to efficiency.
29. The earlier disposal of some ships, and other Defence Review
economies, will slightly reduce the Dockyards' programme of naval
refitting and repair work. If the labour force remains at about its
present level, there will be a welcome opportunity for some further
diversification in the activities of the Dockyards, to include work
for other areas of the Ministry of Defence and support of the
construction of HM ships, and also repair of warships for foreign
governments on a commercial basis_7. Some increase in civil work
is also expected. Any contribution the Dockyards can make in
exploiting offshore energy resources will be given the greatest
possible priority.
Naval Aircraft Repair Organisation
30. Work is almost complete on the re-organisation of the Naval
Aircraft Repair Organisation (NARO), following the transfer to the
Royal Air Force of responsibility for the repair management of
Naval fixed-wing aircraft, and the assumption by the Royal Navy of
responsibility for the repair management of helicopters for all
three Services. Preparations are also well advanced for the overhaul
and repair within the NARO of marine gas-turbine engines for the
Fleet. Methods are currently being studied for improving the
efficiency and competitiveness of the NARO without reducing its
flexibility in responding to urgent operational requirements.
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CONFIDENTIAL