Despite having to pick up the pieces from the G4S shortfall, the Ministry of Defence is pressing ahead with its own outsourcing plans, privatising the highly sensitive but notoriously inefficient procurement branch of the armed forces.
Number 10 said the government backed a living wage and "would encourage business to take it up" but warned Labour's plans to restrict government contracts in this way could breach EU procurement law.
At the military property agency, Mr Olex-Szczytowski plans to raise more than 2 billion zloty by 2009 from selling surplus property, and to cut procurement costs by a tenth through centralised purchasing and online auctions.