Select Committee on Defence Minutes of Evidence


Examination of Witnesses (Questions 160-164)

DR LEWIS MOONIE MP, MR COLIN BALMER AND MR MARTIN EARWICKER

TUESDAY 21 JANUARY 2003

  160. Where there are joint sites how do you go about security for two entities subject to the same potential threat?
  (Mr Earwicker) For example, at Farnborough we lease our buildings from QinetiQ. QinetiQ provide the normal security you would expect in a business environment but our buildings themselves are completely isolated and you cannot get in without swiping a pass, etc., and our IT systems are quite separate.

  161. Perhaps, Minister, you could send us a note on security and policing arrangements, that would be quite helpful.
  (Dr Moonie) Absolutely.

  162. In splitting up DERA, the MoD had to divide up its intellectual property between QinetiQ, the MoD and industry. Has that exercise now been completed to everyone's satisfaction?
  (Dr Moonie) Broadly speaking, yes. I think there are still two small areas in which some resolution has to take place but by and large it has been split to our satisfaction.

  163. So what are the areas still to be resolved, Minister? What firms are disputing the decisions reached in the so-called RASP process? What are the areas of technology involved?
  (Mr Balmer) Can I be clear that we were not splitting intellectual property in many areas. What we are talking about is where somebody owns intellectual property, typically a major company, BAE Systems, Rolls-Royce and so on, if they own the intellectual property then they still own it, we have no power to take it off them. When DERA was a trading fund we had the power under the contract with the companies to give to DERA that information, that intellectual property, so that they could work for us and advise us. They could not use it for their own purposes. They could not go out and make things using that information, that would be illegal. All they could do was advise the MoD. That is still the case. We try to have an arrangement where we only give to QinetiQ information which they need to advise us but belongs to a third party. They cannot use it for any other purpose, that would be illegal. The process by which we did this was this a records and audit separation project where every single item, over 160,000 items, was combed through by MoD staff and QinetiQ staff to say "QinetiQ, do you think you still need this file, this computer programme, this drawing, whatever it may be, to continue to advise us on contracts we now have with you?" If they did not we took it back from them. We had a process of independent audit to make sure that whole programme worked smoothly. As you would expect with 160,000 items, I do not think we got it perfectly right in every case. It is certainly the case that some companies have been nervous that we have left inside QinetiQ some of their property which we should not have done. I repeat, QinetiQ would still not be allowed to misuse it, that would be illegal. What we are talking about is have we given them items of information which we said we would not. We have had two companies asking us questions about that. One was a small matter, the other is a fairly significant piece of work from Rolls-Royce which comprehends a lot of documents which have been generated over a long period of time, over many, many years, and it has proved quite difficult to pin down exactly what has happened to each and every file. Some have been destroyed and we are still in the process of proving that they have been destroyed. Some have been returned to the MoD. Some we are still investigating to see whether it is right that QinetiQ should have them or should not have them. Rolls-Royce seemed to have a concern that QinetiQ, if they have access to this information, somehow will misuse it but, I repeat, we have a compliance regime in place, QinetiQ have an absolute business imperative not to misuse other people's intellectual property, they would be mad to do so and I am confident that they will not do so. Nonetheless, we are going out of our way to try persuade companies that information which is their property is only given to QinetiQ when they need it to advise us.

  164. Who is going to be on the QinetiQ board from the MoD, Minister, have you decided?
  (Dr Moonie) That is still under discussion but there will be one internal appointment, one external appointment.

  Chairman: If there are any more questions perhaps we can drop you a note. Thank you, Minister, and thank you to QinetiQ for trying to enlighten us. Thank you.





 
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