§ Mr. MaplesTo ask the Secretary of State for Defence what assessment he has made of the value for money of the contract to supply artillery shell propellant from Somchem; and if he will make a statement. [78192]
§ Mr. George Robertson[holding answer 22 March 1999]: Somchem was a clear winner of the competition for the sub-contract for the Modular Charge System for the AS90 howitzer on both cost and technical grounds. The decision to award Somchem the contract, therefore, represents best value for money.
§ Mr. MaplesTo ask the Secretary of State for Defence what defence industrial considerations were taken into account in the award of the artillery shell propellant contract to Somchem. [78184]
§ Mr. George Robertson[holding answer 22 March 1999]: We considered defence industrial issues very carefully before deciding to procure the Modular Charge System contract from Somchem. We concluded that Royal Ordnance would still be capable of continuing as a major supplier of a wide range of ammunition to the Ministry of Defence. The company remains a key player in the European ammunition business with a continuing role in the future rationalisation process for the industry.
§ Mr. MaplesTo ask the Secretary of State for Defence what assessment his Department made of the impact of the current value of the South African Rand when awarding the artillery shell propellant contract to Somchem; and what arrangements have been set in place in the contract with regard to exchange rate fluctuation. [78193]
§ Mr. George Robertson[holding answer 22 March 1999]: The contract price for the sub-contract for the supply of the Modular Charge System for the AS90 488W howitzer has been specified in Sterling. The value of the South African Rand, therefore, has no effect on the contract.