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Written Ministerial Statements

Monday 17 January 2011


Integrated Merlin Operational Support Contract

The Parliamentary Under-Secretary of State for Defence (Peter Luff): I am pleased to announce the continuation of the 25-year Integrated Merlin Operational Support (IMOS) contract with the agreement of the second pricing period with Agusta Westland valued at approximately £570 million. The IMOS contract was awarded to Agusta Westland in 2006 to secure the future availability of the Merlin helicopter fleet to the front line while saving the Ministry of Defence and UK taxpayers around £12 million per year compared to previous contractual arrangements. At a time when Merlin helicopters are deployed in Afghanistan and on maritime operations worldwide, agreement to the second pricing period from 2011 to 2016 has ensured that
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cost-effective operational support will continue, at the level required by the armed forces. I am also pleased to use this opportunity to welcome the first flight of the Merlin Mk 2, being developed by Lockheed Martin. The aircraft is due to enter service in 2013 and achieve full operational capability during 2014.


Trusts (Capital and Income) Bill

The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly): I am pleased to announce that having considered the response to the Ministry of Justice's public consultation on the Trusts (Capital and Income) Bill, the Government have decided to take forward the proposed reforms, subject to minor modifications to meet concerns raised during the consultation, when parliamentary time permits.

These reforms are based on the three legislative recommendations made by the Law Commission in its 2009 report "Capital and Income in Trusts: Classification and Apportionment" (Law Com 315).

I have placed copies of the Ministry of Justice's response document to the consultation, which is being published today, in the Libraries of both Houses.

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