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Rail Journeys (Staff)
Mr. Bercow: To ask the Secretary of State for Defence what was the (a) percentage and number of rail journeys undertaken on first class tickets, (b) average cost of a first class journey by rail and (c) total cost of rail travel in each of the past four years broken down by grade of civil servant. [37510]
Dr. Moonie: This information is not held centrally and could be provided only at disproportionate cost.
Halliburton Brown and Root (Contracts)
Mr. Cousins: To ask the Secretary of State for Defence if he will list the contracts he has with Halliburton Brown and Root; and what the total value is of such contracts. [37828]
Dr. Moonie: The Ministry of Defence currently has no direct contracts with Halliburton Brown and Root (HB&R). However, HB&R, as part of consortia, are involved in the ongoing contracts with Devonport Royal Dockyard Limited, and BRAMA, which runs the Multi-Activity Contract at RAF Valley for support Hawk Aircraft. HB&R also lead the FASTTRAX consortium which was awarded the £290 million Heavy Equipment Transporter Private Finance Initiative contract in December 2001.
Gender Pay Gap
Mr. Bercow: To ask the Secretary of State for Defence what assessment he has made of the extent of the gender pay gap amongst staff in his Department. [40999]
Dr. Moonie: In response to the Equal Opportunities Commission (EOC) Task Force 'Just Pay' report, the Government have committed Departments and agencies
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to review their pay systems by April 2003 and prepare action plans to close any equal pay gaps. The Cabinet Office issued comprehensive guidance in January 2002 to assist Departments and agencies in carrying out these reviews. This work is currently underway in the Ministry of Defence.
Multi-role Armoured Vehicles
Mr. Gerald Howarth: To ask the Secretary of State for Defence what is the (a) estimated total project cost of, (b) total expenditure to date and (c) planned expenditure in each of the next three years on the multi-role armoured vehicle project. [42258]
Dr. Moonie: The total estimated procurement cost of the multi-role armoured vehicle is expected to exceed £1 billion. Expenditure to date amounts to some £20 million. I am withholding the information requested on planned expenditure for each of the next three years in accordance with Exemption 2 of the Code of Practice on Access to Government Information.
Advanced Air-launched Anti-armour Weapon
Mr. Gerald Howarth: To ask the Secretary of State for Defence what is the (a) estimated total project cost, (b) total expenditure to date and (c) planned expenditure for each of the next three years on the advanced air-launched anti-armour weapon project. [42259]
Dr. Moonie: The advanced air-launched anti-armour weapon project, BRIMSTONE, has approval to spend up to £849 million, but is currently forecast to spend some £809 million. Expenditure to the end of January 2002 is some £360 million. I am withholding information about planned expenditure for each of the next three years in accordance with Exemption 2 of the code of Practice on Access to Government Information which relates to internal discussion and advice.
Balkans
Mr. Jenkin: To ask the Secretary of State for Defence if he will make a statement on the security situation in (a) Former Yugoslav Republic of Macedonia and (b) Kosovo. [41899]
Mr. Ingram: In Macedonia the continued implementation of the August 2001 Framework Agreement has greatly reduced the potential for violence. We continue to call on all sides to maintain the restraint that they have shown since the agreement was signed. The two NATO-led Task Forces, Harvest and Fox, have made major contributions to restoring stability in Macedonia.
The security situation in Kosovo is generally improving. But organised crime and extremism remain significant problems and tackling them is a high priority for both the UN Interim Administration Mission in Kosovo (UNMIK) and KFOR. We continue to impress on leaders from all sections of the community the importance of tolerance and participation in the democratic process in Kosovo.
QinetiQ
Mr. Liddell-Grainger: To ask the Secretary of State for Defence if he will investigate the running and control in QinetiQ in respect of weapon handling. [41879]
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Dr. Moonie: There are currently no plans to investigate the running and control in QinetiQ in respect of weapon handling.
Mr. Jenkin: To ask the Secretary of State for Defence what interest the management of QinetiQ are permitted to hold in the shares of QinetiQ. [42346]
Dr. Moonie [holding answer 11 March 2002]: At present, all QinetiQ shares are held by the Ministry of Defence on behalf of my right hon. Friend the Secretary of State for Defence.
Any future share scheme will be subject to our negotiations with potential strategic partners. The MOD is committed to ensuring all staff, not just senior management, can participate in such a scheme.
A key principle of any scheme will be to gear benefits to a rise in value of QinetiQ, thus incentivising staff, and increasing the value to the taxpayer.
Mr. Jenkin: To ask the Secretary of State for Defence what assets, business and shareholdings not previously owned by the Government have been acquired by QinetiQ. [42336]
Dr. Moonie [holding answer 11 March 2002]: Acquisitions by QinetiQ and other such operational activities are a matter for the company and I have therefore asked the Chief Executive to write to the hon. Member directly.
Mr. Jenkin: To ask the Secretary of State for Defence what provisions exist to stop QinetiQ gaining access to classified information after it has been transferred to the private sector that is not available to other companies. [42349]
Dr. Moonie [holding answer 11 March 2002]: Prior to the vesting of QinetiQ as a plc on 1 July 2001, an extensive exercise was undertaken to ensure that any Government-only information was removed from the company. QinetiQ will only be given access to that Government information necessary for it to carry out tasks for Ministry of Defence customers on same basis as any other MOD supplier.
Mr. Jenkin: To ask the Secretary of State for Defence what arrangements he proposes to maintain a separation of work conducted by the Defence Science and Technical laboratory on behalf of (a) QinetiQ following its transfer to the private sector and (b) his Department. [42342]
Dr. Moonie [holding answer 11 March 2002]: A set of guidelines has been drawn up which define those circumstances in which Dstl will take on work other than for Government. These apply equally whether the work is done for QinetiQ or any other commercial organisation. Any work carried out for any non-government customer, including the supply of services, goods, products or intellectual property, will be undertaken only with the authority of Ministry of Defence.
Mr. Jenkin: To ask the Secretary of State for Defence how many civil service jobs will be taken over by private consultants as a result of the transfer of parts of DERA to the private sector; how many public sector redundancies there will be; what the cost of those redundancies will be; and who will bear the costs of those redundancies. [42343]
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Dr. Moonie [holding answer 11 March 2002]: On 1 July 2001, 8,720 DERA staff transferred to QinetiQ plc, and therefore ceased at that point to be civil servants. No other transfers from the public sector are currently envisaged as part of the PPP.
No redundancies are directly attributable to the transfer of staff to QinetiQ.
Mr. Jenkin: To ask the Secretary of State for Defence who the shareholders in QinetiQ are; and who has rights to acquire shares in QinetiQ. [42345]
Dr. Moonie [holding answer 11 March 2002]: All the shares in QinetiQ are held by Ministry of Defence, on behalf of my right hon. Friend the Secretary of State for Defence, and currently no one else has the right to acquire shares. We will go through competitive process to identify by summer 2002 a preferred bidder for a proportion of the equity in QinetiQ.
Mr. Jenkin: To ask the Secretary of State for Defence who are the main contractors bidding for work from (a) the Defence and Science Technical Laboratory and (b) QinetiQ. [42348]
Dr. Moonie [holding answer 11 March 2002]: At any one time there is an extremely broad range of commercial concerns and academia bidding for work generated by the requirements of Dstl and QinetiQ. It is not possible to actually predict who will be bidding for work from the two organisations given the wide nature of work that they would be seeking to subcontract.
Mr. Jenkin: To ask the Secretary of State for Defence what he estimates will be the total proceeds of sale of shares in QinetiQ to the private sector. [42341]
Dr. Moonie [holding answer 11 March 2002]: It is premature to speculate at this stage on the potential value of the QinetiQ transaction, and to do so would undermine our negotiating position with potential investors. Our priority is to seek to maximise value to the taxpayer.
Mr. Jenkin: To ask the Secretary of State for Defence what plans there are to allow former DERA properties to be developed for (a) housing and (b) commercial development outside the normal business of QinetiQ. [42347]
Dr. Moonie [holding answer 11 March 2002]: I refer the hon. Member to the answer I gave on 22 May 2000, Official Report, columns 319W-20W, detailing DERA's future estate redevelopment and disposal plans. At that time four sites, Chertsey, Bromley (Aquilla), West Drayton and Farnborough Queens site, were identified by DERA as becoming surplus as part of their continuous estate review process. Prior to the vesting of QinetiQ on 1 July 2001 only Farnborough Queens site was sold, although part of the site is leased back by QinetiQ. Information relating to the business plans of QinetiQ plc is commercial in confidence and therefore details of current property redevelopment and disposal plans is being withheld under exemption 14 of the Code of Practice on Access to Government Information.
Mr. Jenkin: To ask the Secretary of State for Defence what plans there are to issue shares in QinetiQ on a recognised stock exchange. [42350]
Dr. Moonie [holding answer 11 March 2002]: As I announced on 6 March 2002, Official Report, columns 313–14W, the initial transaction involves the sale
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of a proportion of the shares in QinetiQ to a strategic investor, with a flotation of the remaining stake as a possible exit route in two to four years. Detailed planning for this would obviously take place nearer the time.
Mr. Jenkin: To ask the Secretary of State for Defence if he will list (a) real estate properties and (b) intellectual property rights that the Government have transferred or plan to transfer to QinetiQ, indicating (i) how each property has been valued, (ii) if he plans to make such transfers at full market value and (iii) what arrangements there will be to claw back increases in the value of such properties. [42344]
Dr. Moonie [holding answer 11 March 2002]: The information is as follows:
(a) The real estate properties transferred to QinetiQ are listed:
| Name | Location | Size(21) |
|---|---|---|
| Aberporth | Aberporth, Ceredigion | 48 |
| Alverstoke | Gosport, Hampshire | 9 |
| Angle | Pembrokeshire | 19 |
| Aquila | Bromley, Kent | 10 |
| Bedford Enclave | Clapham, Bedford | 6 |
| Bedford Tunnels | Clapham, Bedford | 35 |
| Bedford Twinwoods | Clapham, Bedford | 21 |
| Bincleaves | Weymouth, Dorset | 3 |
| Chertsey | Chertsey, Surrey | 121 |
| Christchurch(22) | Christchurch, Dorset | 3 |
| Cobbet Hill | Woking, Surrey | 76 |
| Farnborough Codey | Farnborough, Hampshire | 149 |
| Fort Halstead | Sevenoaks, Kent | 135 |
| Fraser | Eastney, Portsmouth, Hampshire | 5 |
| Funtington North | Chichester, West Sussex | 16 |
| Haslar(22) | Gosport, Hampshire | 16 |
| Hurn Main | Bournemouth, East Dorset | 98 |
| Hurn Barnsfield | Bournemouth, East Dorset | 143 |
| Hurn Saddleheath | Bournemouth, East Dorset | 20 |
| Hutton Moor | West Super Mare, North Somerset | 6 |
| Malvern Main Site | Malvern, Worcester | 28 |
| Malvern Science Park | Malvern, Worcester | 5 |
| Pershore | Throckmorton, Worcester | 110 |
| Portsdown LBTS | Portsmouth, Hampshire | 11 |
| Pyestock North | Farnborough, Hampshire | 53 |
| Pyestock South | Farnborough, Hampshire | 34 |
| West Drayton | Heathrow, Middlesex | 2 |
(21) Approximate hectares
(22) These sites are a mixture of freehold and leased land.
Note:
Sizes are approximate and have been rounded.
In addition QinetiQ are leaseholders at a number of other sites.
(i) GVA Grimley, an independent professional valuation company, were engaged by DERA to perform a valuation exercise to determine the "fair value" of the property portfolio as at 30 June 2001. The methodology used for the valuation was:
- (a) Non-specialsed properties—existing use value
- (b) Specialised properties—depreciated replacement cost
- (c) Properties surplus to requirements—open market value
- (d) Properties held as investment—open market value.
(ii) All properties were transferred to QinetiQ at the values calculated by GVA Grimley using the most appropriate methodology, as outlined in (i).
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(iii) All sites where freehold or leasehold title has transferred to QinetiQ are subject to a clawback arrangement contractually agreed with the MOD. This limits QinetiQ's ability to make abnormal profits on disposal. The clawback agreement was based on the valuations conducted by GVA Grimley in 2001, with an allowance for inflation over the 12-year period of the agreement. It provides for MOD to share a proportion of any additional receipts above this value; this proportion starts at 50 per cent. and decreases gradually over the life of the agreement.
This clawback agreement provides an appropriate balance between sharing future benefits from estate sales and incentivising the company to manage its assets efficiently.
(b) Due to the volume involved, it is not possible to list all the Intellectual Property (IP) transferred to QinetiQ (e.g. over 3,000 patents that have been assigned to the company).
The basic principal adopted was that QinetiQ should be put in the same position as any other defence contractor, i.e. where IP had been generated within that part of DERA that was to become QinetiQ then QinetiQ should own the IPR. As with the rest of industry, MOD retains free user rights where public money was used to create the IP.
(i) and (ii) There was no valuation attributed to the IP at vesting as value will be realised within the value of future sales of MOD's shareholdings.
(iii) IP clawback provision has not been provided in this PPP. This mirrors MOD policy, which is not to include any form of levy agreement when letting contracts for research and technology with other parts of industry, the reason for this being that in contrast to equipment it is virtually impossible to trace the research and technology that may have been used to generate future revenue. As a significant shareholder in QinetiQ for the next few years, we believe that the freedom and encouragement to exploit results commercially represents better overall value for money than pursuing a clawback arrangement where the extent of bureaucracy would be great and the potential returns difficult to obtain.
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