CONFIDENTIAL

2ND DRAFT

The Royal Naval Supply and Transport Service (RNSTS)

31.

Multi-purpose workshop complexes are being constructed at

Portsmouth and Devonport to assist the RNSTS in servicing the

sophisticated weapons now entering service. Each complex is wholly

self-contained and able to maintain a variety of weapons, with an

improved standard of protection for personnel and equipment should

a mishap occur during assembly and testing. These workshops represent

a significant advance on existing maintenance facilities.

ROYAL ORDNANCE FACTORIES

Introduction of a Trading Fund

32. To improve the system of financing the Royal Ordnance

Factories (ROF), the Trading Fund was introduced on 1 July 1974 on

the authority of an Order made under the Government Trading Funds Act

1973. The disciplines and responsibilities of the new funding

arrangements, coupled with the greater autonomy which the Trading

Fund has brought, should provide the opportunity and means to

improve upon the high standards maintained in the past.

Future Programme

33. Planned production in 1975-76 includes ammunition, explosives

and air-dropped weapons, armoured fighting vehicles and combat

reconnaissance vehicles, guns of various calibres (including the new

light field gun), cannon and general purpose machine guns and

contributions to the guided-weapons programme. The ROFS co-operate

with the Ministry of Defence's Research and Development Establishments

in development work on, among other things, armoured vehicles, guns

and ammunition. The organisation eleven factories and two agency

factories is expected to produce an output worth about £126_7million;

some [40% of this will be for export, including equipment for our

78.

CONFIDENTIAL

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