More MOD Silver up for Sale
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More MOD Silver up for Sale
I expect other members will have seen the article in the Sunday Times Business section today concerning the proposed sale of the GPSS Network.
The UK Governments stated aim behind the proposed deal is :
(1) Enabling increased private sector investment in the GPSS in order to increase the resilience of the system and allow even greater commercial development, by removing current restrictions on developing the system for greater commercial usage unless there is an underpinning defence requirement.
(2) Generating a capital receipt for UK Government.
UK GPSS Sale
What's the betting that the RAF ends up paying through the nose for its future Aviation fuel supply and storage needs post this privatisation
Government Pipelines and Storage System (GPSS)
The GPSS comprises 2,000 kilometres of operating pipelines and 15 COMAH registered storage sites. The operational storage depots are connected to the pipeline system which receives supplies from some of the major refining centres and port areas in England.
The GPSS receives, stores, transports and delivers light oil petroleum products for military and civil users and it distributes 40% of aviation fuel within the United Kingdom. In peacetime the military only use around 10% of the current throughput and 60% of the storage capacity of the system. The GPSS not only supplies aviation fuel to the military but it also has a substantial role in supplying aviation fuel the UK’s commercial airports.
The GPSS comprises 2,000 kilometres of operating pipelines and 15 COMAH registered storage sites. The operational storage depots are connected to the pipeline system which receives supplies from some of the major refining centres and port areas in England.
The GPSS receives, stores, transports and delivers light oil petroleum products for military and civil users and it distributes 40% of aviation fuel within the United Kingdom. In peacetime the military only use around 10% of the current throughput and 60% of the storage capacity of the system. The GPSS not only supplies aviation fuel to the military but it also has a substantial role in supplying aviation fuel the UK’s commercial airports.
The UK Governments stated aim behind the proposed deal is :
(1) Enabling increased private sector investment in the GPSS in order to increase the resilience of the system and allow even greater commercial development, by removing current restrictions on developing the system for greater commercial usage unless there is an underpinning defence requirement.
(2) Generating a capital receipt for UK Government.
UK GPSS Sale
What's the betting that the RAF ends up paying through the nose for its future Aviation fuel supply and storage needs post this privatisation
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No comment on the rights or wrongs, but this has been on the cards for a long time.
There was something in the press over a year ago, and I'm sure the map showed a line from Falmouth to St Mawgan, which isn't on this version.
There are other systems, already privately operated.
There was something in the press over a year ago, and I'm sure the map showed a line from Falmouth to St Mawgan, which isn't on this version.
There are other systems, already privately operated.
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What's the betting that the RAF ends up paying through the nose for its future Aviation fuel supply and storage needs post this privatisation
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"..RAF ends up paying through the nose..?" At the moment taxpayers have to pay the entire cost of running, maintaining and developing the pipeline network. Surely sharing that burden with commercial partners can only reduce that cost?
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ShotOne ...
Agreed ... but then a commercial operator will want to make a profit from the venture ... which is a further cost to be absorbed within the Business Model. Added to which, if further investment is made to cater for wider commercial interests, those amortised costs will need to be covered by the revenue take. Sale and Leaseback is usually a one-off win for any seller.
One hopes that from a "National Security" perspective that any ultimate owner/operator will be a UK organisation ...
Agreed ... but then a commercial operator will want to make a profit from the venture ... which is a further cost to be absorbed within the Business Model. Added to which, if further investment is made to cater for wider commercial interests, those amortised costs will need to be covered by the revenue take. Sale and Leaseback is usually a one-off win for any seller.
One hopes that from a "National Security" perspective that any ultimate owner/operator will be a UK organisation ...
More MOD Silver up for Sale
I shouldn't be so surprised. Governments of both hues have repeatedly shown that they are willing to sell anything for the right price.
I absolutely shudder to think what the list would look like if you drew one up listing just how much of UK plc's strategic interests are now in the hands of private and overseas shareholder.
Robert Peston pretty much had it right in his book 'Who Runs Britain?' Government and business, business and government: hard to tell the difference these days.
I absolutely shudder to think what the list would look like if you drew one up listing just how much of UK plc's strategic interests are now in the hands of private and overseas shareholder.
Robert Peston pretty much had it right in his book 'Who Runs Britain?' Government and business, business and government: hard to tell the difference these days.
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"..need to be covered by the revenue take". Surely an improvement on being funded in full by the taxpayer?
Re. national security, what are you worried they'll dig it up?
Re. national security, what are you worried they'll dig it up?
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Does anyone give a toss about National Security anymore? Since the early 90s our entire military capability has been reduced to levels I never thought any even half-way responsible government would inflict. Doubtless there will be yet more reductions to come.
I fear that one day there will be a terrible price to pay for all this. (the famous quote from Santayana)
I fear that one day there will be a terrible price to pay for all this. (the famous quote from Santayana)
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How does cutting a deal to share this expensive and underused facility harm national security? On the contrary, every penny spent digging pipelines and fuel bunkers is money NOT available for aircraft and missiles.
For some the issue seems to be that someone might make a profit. How terrible! Perhaps for some ppruners the wrong side won the Cold War!
For some the issue seems to be that someone might make a profit. How terrible! Perhaps for some ppruners the wrong side won the Cold War!
More MOD Silver up for Sale
Coff,
I think this is all part if the Govt's green agenda. Expect to start seeing photovoltaic cells on hangar roofs and all aircraft converted to electric. And once you've done that, Bob's your uncle - fuel supplies don't matter, the Greens are happy as are the NIMBYs who now don't have those horrid aircraft making that ghastly racket.
You heard it here first!
I think this is all part if the Govt's green agenda. Expect to start seeing photovoltaic cells on hangar roofs and all aircraft converted to electric. And once you've done that, Bob's your uncle - fuel supplies don't matter, the Greens are happy as are the NIMBYs who now don't have those horrid aircraft making that ghastly racket.
You heard it here first!
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ShotOne.
Profit is no bad thing as long as it benefits the nation/community as well as the entrepreneur. However, if you have profit but leave behind an economically blighted area where jobs are scarce, do you not create the very conditions that our opponents in the Cold War would thrive on?
A certain irony there, surely?
Profit is no bad thing as long as it benefits the nation/community as well as the entrepreneur. However, if you have profit but leave behind an economically blighted area where jobs are scarce, do you not create the very conditions that our opponents in the Cold War would thrive on?
A certain irony there, surely?
Fabs, Post #11, Lossiemouth hasn't moved, nor has Kinloss. I worked for John Laing Construction in 1980 when we laid that pipeline and it definitely included ISK. In fact, a neighbour of ours was Kinloss Supply Officer and when I told him I'd got the job he said "great, that's my fuel".
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Good luck to who ever buys it, hope they have deep pockets for the repairs and get on well with the EA.
I wonder what they will do with the Cross Country Pipeline to LYNE now? Couple of years ago they said they had filled it with inert gas. Hopefully it's still in it.
I wonder what they will do with the Cross Country Pipeline to LYNE now? Couple of years ago they said they had filled it with inert gas. Hopefully it's still in it.
Interesting that the Purton site, is likely to be shut down, due to safety concerns in the near future. A recent, locally opposed, housing development (subsequently overridden) now encroaches on the safety zone for the installation. Once complete, I'm in no doubt that the anti's will be demanding the removal of this threat to the new houses. As these little known public owned services are sold off, so we diminish the support to those who serve. Sorry, I suppose I'm just getting a bit old and jaded.
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