A 25 year PFI contract has been awarded to REALM Services (DAC) Ltd for the running of the Defence Animal Centre at Melton Mowbray in Leicestershire. REALM Services (DAC) Ltd is a special purpose company funded by Innisfree Management Ltd, Parkwood Holdings and Taylor Woodrow Construction Ltd.

The project includes a significant rebuilding program including a new Headquarters building and living accommodation to be ready by late next year.

The Armed Forces Minister John Spellar said: "I am pleased to be able to make this announcement. It is yet another example of our continued effort to forge links with the commercial sector where it is viable. I am confident that the same professional training of our animals and their handlers will continue. I am especially pleased that everybody's jobs are safe and that future liaison with external customers may even lead to more employment opportunities."

The Defence Animal Centre is one of the largest animal training centres in the world outside the USA. This includes training horses for various Army regiments including the Household Cavalry but the bulk of the work is training dogs for guard duties and drugs and explosive detection, for the Armed Forces, Customs and Excise, Home Office and other government departments.

Richard Byatt