Mr. O'NeillTo ask the Secretary of State for Defence what was the nature of the claim for stores supplied to a contractor referred to on page 18 of the Appropriation Accounts 1989–90 Volume 1: Class 1 that resulted in a loss of £135,000; and why this claim was abandoned.
§ Mr. Alan ClarkIn August 1988, a contractor made a direct approach to MOD engineering staff to purchase from MOD at a price of £20,000 equipment for onward sale to an overseas customer. Without authorisation of the price or terms and conditions of sale, the transaction was agreed. Subsequently advice was that a claim to recover the difference between the replacement value and sale price, £135,000, should not be pursued.
Mr. O'NeillTo ask the Secretary of State for Defence what was the cause of the slippage in planned land and property sales referred to in note(e) of page 17 of the Appropriation Accounts 1989–90 volume 1. class 1.
§ Mr. Archie HamiltonAs explained in the Statement on the Defence Estimates 1990, page 50, the property market in 1989–90 was depressed and this had an adverse effect on sales of houses and land for development.
Mr. O'NeillTo ask the Secretary of State for Defence what was the cause of the slippage of the project management fee referred to in note(a) on page 16 of the Appropriation Accounts 1989–90 volume 1, class 1.
§ Mr. Alan ClarkThe fee was linked to the signature of contracts, the negotiation of which has taken longer than expected.
Mr. O'NeillTo ask the Secretary of State for Defence which company received the special extra-contractual payment in final settlement of a mutually terminated information technology contract amounting to £2,243,000 referred to on page 11 of the Appropriation Accounts 1989–90 volume 1, class 1; and what was the cause of this payment.
§ Mr. Alan ClarkThe payment related to work done by Data Logic Ltd. on the design of a system for use by the Army cataloguing authority. The contract was terminated by mutual agreement in January 1990, and the payment made in respect of outstanding issues.