§ Mr. Gordon Brownasked the Prime Minister (1) when Her Majesty's Government first became aware that a certificate of qualification was required for Mr. Peter Levene to be employed as Chief of Defence Procurement;
(2) what criteria would have to be satisfied by Mr. Peter Levene before a certificate of qualification was issued for his appointment as Chief of Defence Procurement;
(3) whether the Civil Service Commissioners considered if a certificate of qualification could be granted to Mr. Peter Levene.
§ The Prime MinisterAs explained in my reply to my hon. Friend the Member for Erith and Crayford (Mr. Evennett) on 18 March, at column 366, having regard to all the circumstances, the Civil Service commissioners were satisfied that it was desirable that Mr. Levene's appointment, which is for a period not exceeding five years, should proceed without the issue of a certificate of qualification, under the provision of article 1(2)(g) of the Civil Service Order in Council 1982.
§ Mr. Gordon Brownasked the Prime Minister (1) on what date Her Majesty's Government first consulted the Civil Service Commissioners about the appointment of Mr. Peter Levene;
(2) when Her Majesty's Government first became aware that a secondment was required if Mr. Peter Levene was to become Chief of Defence Procurement; and from which organisation Mr. Peter Levene was to be seconded;
569W(3) what is the total yearly sum payable to Mr. Peter Levene, including payments for pension, in his new post as Chief of Defence Procurement;
(4) when the contract with Mr. Peter Levene as Chief of Defence Procurement was finalised; and why it is difficult, if not impossible to undo;
(5) what are the terms of compensation payable to Mr. Peter Levene in his post of Chief of Defence Procurement if his appointment is terminated prior to its completion;
(6) what is the minimum length of the contract between Mr. Peter Levene and Her Majesty's Government;
(7) when she expects to announce the final terms and conditions of Mr. Peter Levene's appointment as Chief of Defence Procurement;
(8) why no mention was made of secondment when the appointment of Mr. Peter Levene was announced on 19 December.
§ The Prime MinisterI refer the hon. Member to the reply I gave to the hon. Member for Erith and Crayford (Mr. Evennett) on 18 March, at column366.
The First Civil Service Commissioner was consulted about Mr. Levene's appointment on 18 December last. When my right hon. Friend the Secretary of State for Defence announced the appointment on 19 December, he made it clear that its precise terms were still under discussion with the commission. Although at that stage a secondment was envisaged, no final decisions had been taken on its exact nature or from which organisation it might he arranged, other than that Mr. Levene would not be seconded from United Scientific Holdings. No mention of secondment was included in the announcement on 19 December because the detailed arrangements had yet to be decided.
Mr. Levene received his letter of appointment and began work on 19 March. He was appointed under a fixed-term contract which may be terminated by 12 months' notice in writing by either party and which has a maximum duration of five years, in accordance with paragraph 1(2)(g) of the Civil Service Order in Council 1982. If the appointment is terminated prior to its completion, Mr. Levene could be eligible to receive up to 12 months' pay in lieu of notice depending on the circumstances at the time.
Mr. Levene will receive an initial annual salary of £95,000. This will be subject to the same pay award percentage increases as those appropriate to permanent secretaries and on the same dates starting with the increase, if any, awarded with effect from 1 April 1986. In addition, pension contributions amounting to £12,500 a year will be paid by the Department on Mr. Levene's behalf. Mr. Levene has severed all connections with his former companies and divested himself of his shareholding in them.
§ Mr. Gordon Brownasked the Prime Minister whether the proposed secondment of Mr. Peter Levene was to be from a company that enjoyed Ministry of Defence contracts.
§ The Prime MinisterNo final decisions had been taken on the organisation from which Mr. Levene was to be seconded when the possibility of secondment was abandoned.
§ Mr. Gordon Brownasked the Prime Minister if she was aware that the former company of Mr. Peter Levene 570W was tendering for the Ministry of Defence contract for the new range of armoured personnel carriers at the time of his appointment as Chief of Defence Procurement.
§ The Prime MinisterYes. Invitations to tender for the main production order for MCV 80 were issued in April 1984. Alvis, a subsidiary of United Scientific Holdings, is one of four contractors who have submitted bids. These are currently being evaluated.
§ Mr. Gordon Brownasked the Prime Minister if she anticipates any conflict of interest in the appointment of Mr. Peter Levene as Chief of Defence Procurement and the award of contracts for the new range of armoured personnel carriers.
§ The Prime MinisterNo. Special arrangements are being made within the Ministry of Defence to ensure that Mr. Levene will not be personally involved in this or any other contract award which might involve any conflict of interest with his former industrial interests.