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Explosives, Propellants and Related End Products Agreement
Mr. Cohen: To ask the Secretary of State for Defence (1) how the explosives, propellants and end products agreement applied to defence contracts with (a) Saudi Arabia, (b) Jordan, (c) Oman and (d) Malaysia; and what was the financial benefit to Royal Ordnance of the relevant contracts with these countries; [992]
(2) what (a) was and (b) are the objectives and purposes of the explosives, propellants and related end products agreement; [1035]
(3) what has been Royal Ordnance's record under the explosives, propellants and related end products agreement in respect of (a) timeliness of delivery, (b) quality and (c) pricing; and if he will make a statement; [989]
(4) over what period the explosives, propellants and related end products agreement is applicable; [1037]
(5) what is the successor arrangement to the explosives, propellants and related end products agreement which expired in March 1993; [1029]
(6) what other companies, other than Royal Ordnance, were or are party to the explosives, propellants and related end products agreement; [1036]
(7) what plans he has to introduce competition for the supply of certain products under the explosives, propellants and related end products agreement; what factors have inhibited competition to date; and if he will make a statement; [990]
(8) what joint ventures with foreign companies have been considered, or entered into, under the explosives, propellants and related end products agreement; [991]
(9) if he will list the agreements made between Her Majesty's Government and British Aerospace Royal Ordnance prior to the signing of the explosives, propellants and related end products agreement; and if he will make a statement; [1034]
(10) what current orders and supply of products (a) did and (b) does the explosives, propellants and related end products agreement apply to; [1038]
(11) if he will list those aspects of the explosives, propellants and related end products agreement which expired in March 1993 which (a) remain commercial-in-confidence and (b) are no longer commercial-in-confidence; and if he will make a statement. [1030]
Mr. Arbuthnot: The explosives, propellants and related end products agreement had two main objectives: first, to secure the supply of the majority of the Ministry of Defence's ammunition requirements of the five-year period following the privatisation of the Royal Ordnance factories; and secondly, to guarantee a core work load for the newly established Royal Ordnance plc, allowing the company to develop into an efficient competitor.
The EPREP agreement subsumed two earlier agreements--the explosives and propellants agreement of August 1986 and the small arms agreement of September 1986.
23 Nov 1995 : Column: 263
The EPREP agreement ran from 1 April 1988 to 31 March 1993 and covered 42 different types of ammunition including tank, field gun, mortar, small arms and Navy ammunition. RO's performance under the agreement was satisfactory in terms of timely delivery, quality and price. Although all the work is now completed, the terms and conditions of the agreement remain "commercial-in-confidence" until both the signatories agree otherwise.
The only parties to the EPREP agreement were RO and the Ministry of Defence. No other companies were involved. The agreement was not concerned with exports.
All the orders placed under the agreement were awarded non-competitively. During the period of the agreement, the Ministry of Defence assessed and trialled alternative products from other suppliers so that, in the future, more ammunition orders could be subjected to competition.
There was no successor arrangement to the EPREP agreement. However, the success of the agreement in helping to make RO an efficient competitor was shown in 1993 when RO secured, largely in competition, a major long-term Ministry of Defence contract for ammunition. This contract covered much of the armed forces' requirement for small arms ammunition between 1993 and 2000 and for larger calibres between 1993 and 1998.
Dr. David Clark:
To ask the Secretary of State for Defence if he will make a statement concerning his Department's ships (a) HMS Andromeda and (b) HMS Sirius. [1823]
Mr. Arbuthnot:
Regarding the former HMS Andromeda, I refer the hon. Member to the reply I gave him on 6 July 1995, Official Report, column 371. The former HMS Sirius has been decommissioned, and awaits disposal. We are considering a number of disposal options for her. No final decision has yet been made concerning her future sale, or use for other purposes.
Dr. David Clark:
To ask the Secretary of State for Defence what was the total original cost of purchasing the four Upholder class submarines. [1822]
Mr. Arbuthnot:
I refer the hon. Member to the answer my predecessor gave him on 21 April 1995, Official Report, column 308.
Mr. Livingstone:
To ask the Secretary of State for Defence if he will list the titles of each of the unclassified technical papers known as Porton notes produced by the Chemical and Biological Defence Establishment Porton Down between 1965 and 1968. [1583]
Mr. Arbuthnot:
This is a matter for the Defence Evaluation and Research Agency under its framework document. I have asked the chief executive, DERA, to write to the hon. Member.
23 Nov 1995 : Column: 264
Letter from John Chisholm to Mr. Ken Livingstone, dated 23 November 1995:
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