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Ministry of Defence: Rent Collection

Volume 684: debated on Tuesday 25 July 2006

asked Her Majesty’s Government:

Further to the Written Answer by the Lord Drayson on 20 July (HL7009), what is the rent currently payable by QinetiQ to the Ministry of Defence on the South Arm explosion testing facility at Rosyth. [HL7151]

QinetiQ does not pay rent on the South Arm explosion testing facility at Rosyth. The vast majority (approximately 95 per cent) of work conducted by QinetiQ at this site is in either direct or indirect (through prime contractors) support to Ministry of Defence programmes. As all the costs of operating this site are passed back to MoD under these contracts there is no point in charging a rent as this would in effect become “circular money”.