§ Mr. Fisherasked the Secretary of State for Defence what properties, rights and liabilities, related at present to the royal ordnance factories, are not included in the 1982–83 royal ordnance factories accounts.
§ Mr. PattieThe royal ordnance factory accounts (1982–83) are a financial reflection of the purposes to which the trading fund is put that is:
- (a) the supply of any article intended or adapted for use by the Armed Services of the Crown or the Armed Services of the Government of any other country or of any international organisation; and
131 - (b) any operation incidental or conducive to the conduct of the operations described in paragraph (a), including the supply to any person, Government or international organisation of any article which may conveniently be supplied in conjunction with those operations.
In addition the close connection between the MOD and the ROFs makes it sensible for the MOD to provide certain ancillary services (for which the ROFs pay) such as works, catering, ranges and welfare. Individual decisions have yet to be taken on how similar services will be provided within the successor companies. Furthermore, there are facilities such as houses, and sports clubs outside the trading fund where individuals may contract directly. Finally, the hon. Member is aware that rights, liabilities and property new to the ROFs, for example, intellectual property rights, full responsibility for contracts and Propellants, Explosives and Rocket Motor Establishment, are planned to be vested in the successor companies. After incorporation the statutory accounts of the new company will disclose the financial information specified in the Companies Act.