To ask the Secretary of State for Defence when he expects to make an announcement on the CHARM 3 training ammunition competition; and if he will make a statement.
§ Mr. Kilfoyle
I am please to announce that, following a competition and subject to the negotiation of satisfactory terms and conditions, we have decided to award a contract to Royal Ordnance for the development and initial production of 120mm training ammunition for the Challenger 2 tank. This is good news for the company and will provide the Army with training ammunition to match Challenger 2's excellent performance and capability.
In addition, discussions between MOD and Royal Ordnance on a possible Partnering Arrangement are progressing very well. We signed a Partnering Principles document on 8 October, which defined our mutual objectives, including the achievement of improved value for money for the MOD as customer, and profitability for the company. Negotiations are continuing and I hope to be able to make an announcement shortly. In the event that an agreement is reached, the intention is that CHARM 3 Training Round would be included within the scope of any such Agreement.