Military accommodation: Doing the Sums

#1
The Armed Forces Minister, Bob Ainsworth has responded to the publication of the House of Commons Defence Committee report on Defence Estates.

He highlights that over the next 10 years, £5Bn will be spent on the Services' accommodation. Now forget about maintenance of current buildings for a minute and consider new SLAM accommodation.

There are currently 71,000 houses and 165,000 MOD bedspaces worldwide. 41% of accommodation is sub-standard (Newsnight 06/09/07). Just to sort out the 41% of SLA (67,650beds), £5Bn will provide £73k per bed.

That's quite a lot you would think, but if you look at Tony Blair's announcment (11/01/07), the next phase of Project SLAM contract for 3,800beds costs £335M or £88k per bedspace. Add inflation to this (at 3% per annum) and at the end of the 10 year investment each bedspace will be costing £118k in 2017.

If all the SLA were replaced with SLAM at the same cost of that announced by Tony Blair, £14.5Bn would be required, and that is in today's money.

And all this is without spending a penny on married quarters...
 

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