[xsl] using -it in command line

["Mark Wilson pubs@xxxxxxxxxxxx" <xsl-list-service@xxxxxxxxxxxxxxxxxxxxxx>]

Help?
White space is not removed when using this command line:
java -jar c:\saxon\saxon9.jar  -xsl:read1.xsl -it:runit -o:output.xml

on stylesheet 'read1.xsl:

<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"; 
xmlns:xs="http://www.w3.org/2001/XMLSchema"; 
xmlns:saxon="http://saxon.sf.net/"; xmlns:mets="http://www.loc.gov/METS/"; 
xmlns:blprocess="http://bl.uk/namespaces/blprocess";
  exclude-result-prefixes="xs" version="2.0">

  <xsl:output method="xml" indent="yes"/>
  <xsl:strip-space elements="*"/>

  <xsl:template name="runit">
    <xsl:apply-templates select="collection('docs?select=*.xml')"/>
    <xsl:for-each select="collection('docs?select=*.xml')">
      <xsl:apply-templates select="saxon:discard-document(.)"/>
    </xsl:for-each>
  </xsl:template>

  <xsl:template match="/">
   <xsl:apply-templates/>
  </xsl:template>
  <xsl:template match="mets:amdSec">
    <xsl:if test="@ID eq 'amd0002'">
      <xsl:copy-of select="descendant::blprocess:processMetadata" 
copy-namespaces="no"/>
    </xsl:if>
  </xsl:template>

  <xsl:template match="mets:name"/>

</xsl:stylesheet>

Thanks,
Mark