§ Mr. Jim MurphyTo ask the Secretary of State for Defence if he will make a statement about negotiations with the companies involved in the payment of commissions to Gordon Foxley relating to defence companies. [7090]
§ Mr. Spellar[pursuant to his answer, 3 July 1997, c. 257]: and following the announcement made by the then Minister of State for Defence Procurement on 13 June 1996, Official Report, column 248, concerning settlement with Raufoss AS: A satisfactory settlement has now been concluded with the second of the three companies concerned, Junghans GmbH of Germany, under which the company will pay an agreed sum in redress to my Department, including interest and a contribution to costs for payments made contrary to contractual conditions. A statement of contribution by the company, a copy of which has been placed in the Library of the House, forms part of the agreement with the Ministry of Defence. We have decided that in the light of this agreement the company will become eligible to be considered for Ministry of Defence orders, although normal commercial relations will not be resumed for some months. Discussions are continuing with the successor companies to Fratelli Borletti SpA, the third company involved in the Foxley case, against whom proceedings are still in train.