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Qinetiq

Volume 472: debated on Wednesday 27 February 2008

To ask the Secretary of State for Defence (1) how much has been received from QinetiQ following the sale of each former Government-owned site as a result of the clawback agreement; and in relation to which sites the money has been received; (178249)

(2) in relation to the sale of which sites he expects to receive monies from QinetiQ as a result of the clawback agreement during 2008; how much he expects to receive in relation to each such site; and for which sites he does not expect to receive monies;

(3) what acreage of land has been transferred from his Department to QinetiQ; how much of that land has subsequently been disposed of and at what price; and if he will make a statement.

The requested information is not held centrally or in a consistent form. However, it should be possible to compile the requested information without incurring disproportionate cost. I will write to the hon. Member as soon as the work has been completed and place a copy of my letter in the Library of the House.

Substantive answer from Des Browne to Mike Hancock:

I undertook to write to you in answer to your Parliamentary Question on 21 January 2008 (Official Report, column 1604W) about monies received from QinetiQ following the sale of land as a result of the clawback agreement and what acreage of land has been transferred to QinetiQ and has subsequently been disposed of.

The table at Annex A shows the acreage of land transferred to QinetiQ together with an indication as to whether it has been substantially sold and if clawback has been received by the Ministry of Defence (MOD).

In respect to the value of the land transferred, I refer you to the answer by the then Under Secretary of State gave on 13 January 2003 (Official Report, column 404W) to the hon. Member for North Essex (Mr. Jenkin). In terms of the actual receipts, the attached table cross references the relevant passages of QinetiQ's Annual Accounts. However, additional details are withheld on grounds of commercial confidentiality.

In 2003, when a stake in QinetiQ was being sold to the Carlyle Group, the Aquilla and Chertsey sites had already been identified as surplus to QinetiQ's business requirements. QinetiQ's obligation to pay the proceeds to the Department were set out in the Aquilla and Chertsey loan note. As a result, £60m of the proceeds from the sale of these sites came directly to the MOD.

I am unable to comment on the likely future receipts from clawback as this very much depends on the future use of sites by QinetiQ, along with the company's schedule for disposal, the timing and terms and conditions of any sale. MOD officials are aware of two prospective sales at Bincleaves in Weymouth and Eastney in your constituency. This information is in the public domain as a result of planning applications or consultations made by the company.

I am placing a copy of my letter in the Library of the House.

ANNEX A: Table of properties transferred to QinetiQ on 1 July 2001

Site title

Hectares

Site sold by QinetiQ

Clawback triggered

Aberporth

48

Yes. 2003 and 2004

No

Alverstoke

9.21

No

Angle

19.41

Yes. 2006

Yes. Awaiting final negotiations over payment.

Aquila

9.62

Yes. 2003

No. Aquilla and Chertsey sales tied o repayment of MOD loan to QinetiQ

Bedford Sharmbrook

<0.3

Yes. 2004

No

Bedford Sports and Social

0.42

Yes. 2003

No

Bedford Enclave

5.52

Yes. 2007

Bedford Tunnels

35.2

Bedford Twinwood

31

Bincleaves

2.72

No. Possible sale 2008-09

Chertsey - Northern Site

40.9

Yes. Part sales in 2003 and 2006

Chertsey -Southern Site

80.2

Christchurch

2.69

No

Cobbett Hill

76.08

Yes. 2004

Yes. Payment received

Farnborough Cody

148.8

No

Fort Halstead

135.17

Yes. 2005

Yes. Awaiting final negotiations over payment.

Fraser

4.83

No. Possible sale 2008-09

Funtington North

16.3

No

Haslar

15.84

No

Hurn Main

98

No

Hurn

142.5

No

Barnsfield

Hum Sandleheath

20.2

No

Hutton Moor

6.07

Yes. 2005

Yes. Awaiting payment

Malvern Main Site

28.49

No

Malvern Science Park

4.66

Yes. 2006

No

Nutley Farm

1.14

No

Pershore

110.4

No

Portsdown LBTS

10.52

No

Pyestock North

53

Yes. 2004

No

Pyestock South

33.85

Yes. Part sale 2006. Part sale 2007

No

West Drayton

1.76

Yes. 2004

No

Winfrith

2.684

No

Notes:

Annual report 2004 - page 1 Note 3c—Includes disclosable details of Chertsey Transaction.

Annual report 2005 - page 55 Note 3—Includes disclosable details of Pyestock North transaction.

Annual report 2006 - page 32 section on fixed asset disposals includes details on disclosable Fort Halstead transaction.

Annual report 2006 - page 68 Note 6—Adds to disclosable information details of Pyestock South transaction.

Annual report 2007 - page 74 Note 5b—refers to Bedford transaction.