§ Mr. JenkinTo ask the Secretary of State for Defence when he plans to divest QinetiQ; and when the funds derived from the sale will be credited to his Department's budget. [14626]
§ Dr. MoonieQinetiQ will be floated as soon as its potential is judged to be suitably developed, subject to value for money considerations and provided the organisation has achieved appropriate performance630W targets. Since vesting of the company on 1 July 2001 work has mainly focused on preparing the company for a future transaction and assessing market conditions. It also remains possible that a strategic partner will be brought in to assist with the commercial development of the company prior to a flotation. The Ministry of Defence is likely to retain an interest in QinetiQ as a means to ensuring that taxpayers receive full value for the investment in past Government funded research. An announcement, hopefully early in the new year, will be made once a decision has been taken on the transaction route, and the proposed timetable.
It has been agreed with HM Treasury that the MOD will receive a credit of at least £250 million in FY 2001–02 in anticipation of a successful PPP. This receipt is not dependent on the actual timing of the final PPP transaction, nor is the figure an indication of the potential value of the transaction.