§ Mr. LuffTo ask the Secretary of State for Defence if development on QinetiQ land is covered by Crown immunity; and if he will make a statement. [35643]
§ Dr. MoonieProperty transferred to QinetiQ, and developed by them, is not subject to Crown immunity.
I assume that this question arises from the recent announcement by the Home Office that land owned by QinetiQ near Pershore is being considered as a potential site for an asylum-seeker accommodation centre. Assuming Pershore is one of the sites chosen, as soon as the Home Office purchase the land it becomes Crown land, and therefore any subsequent development would be covered by Crown immunity.
§ Mr. LuffTo ask the Secretary of State for Defence if he is the owner of QinetiQ; what powers he has to influence the disposal of property owned by QinetiQ; if these powers extend to the power to instruct disposal; and if he will make a statement. [35642]
§ Dr. MoonieAt present the Ministry of Defence wholly owns QinetiQ plc and its subsidiaries. Under the terms of the Business Transfer Agreement (BTA), signed on 1 July 2001, MOD, as a special shareholder, enjoys a number of rights that could be used to prevent the company from disposing of strategic assets and facilities. However, these assets, deemed important to the national defence interest, are small in number. No special shareholder rights exist which could be used to instruct disposal of property owned by QinetiQ.
In the short-term, MOD, as the majority shareholder, does have additional rights which could be used to instruct the company to undertake a certain course of action. However, it has always been our intention that the company should fully develop commercial opportunities and income, and maximise the use of its assets. Commercial development of the company's real estate is in keeping with this, is good for the company and its shareholders, and will be welcomed by future potential investors. Therefore, unless an over-riding defence interest arose, MOD would not contemplate using its majority shareholder rights to influence the company's normal day-to-day operation.
§ Sir Michael SpicerTo ask the Secretary of State for Defence when he expects to make an announcement on the details of the privatisation of QinetiQ. [36847]
§ Mr. HoonThe decision on the precise timing and nature of a sale transaction for QinetiQ will be based on achieving best value for money for the taxpayer. In conjunction with specialist advisers and QinetiQ's management we are reviewing the way forward and I expect to make an announcement shortly.