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QinetiQ

Volume 450: debated on Thursday 19 October 2006

To ask the Secretary of State for Defence what the net proceeds were of the sale of part of the Government’s stake in QinetiQ; for what purpose those proceeds were applied; and if he will make a statement. (92651)

The taxpayer has benefited by nearly £600 million to date from the public-private partnership (PPP) sale of part of the Government’s stake in QinetiQ. Throughout the period of Spending Reviews 2002 and 2004 the Ministry of Defence retained approximately £250 million from the initial PPP transaction with Carlyle (2003) and a further £250 million from the Initial Public Offering (February 2006) for reinvestment in the defence programme.

To ask the Secretary of State for Defence what the value is of the Government's remaining stake in QinetiQ. (93369)

The value of the Government's remaining 19.3 per cent. stake in QinetiQ is dependent on the share price. At close of trading on the London Stock Exchange on 10 October 2006, at a share price of 178 pence, the Government's 124,885,445 shares were worth some £222 million.

To ask the Secretary of State for Defence what the cost has been to date of QinetiQ's equity investment in the Metrix consortium; what the maximum investment will be; and whether QinetiQ sought the Government's approval for such an investment. (93373)

QinetiQ's involvement in the Metrix consortium is an operational matter for the company; questions should be referred to the chief executive at the following address:

Graham Love

Chief Executive

QinetiQ Limited

Cody Technology Park

Building Al

Ively Road

Farnborough

Hampshire GU14 OLX

There is no requirement for QinetiQ to seek the Government's approval for any such investment.