§ Mr. CohenTo ask the Secretary of State for Defence what percentage commercial exploitation levy is applied to defence related exports to recover MOD Research and Development costs; and what the percentage was in each of the last 10 years. [146068]
§ Dr. MoonieThe rates vary according to the type of equipment involved and the extent to which its development was funded by the Ministry of Defence. Higher value sales would normally employ profit-sharing schemes rather than applying levy rates. The circumstances of individual sales may also permit some variation to the levy arrangements which would be negotiated on a case by case basis. I am withholding62W details of the individual rates used and the circumstances in which they might apply under the exemptions 7 and 13 of the Code of Practice on Access to Government Information. The rates currently in use have remained unchanged over the period in question.
§ Mr. CohenTo ask the Secretary of State for Defence what the research and development levy income was for each of the past 10 years; and in respect of what categories of contracts it was levied. [146070]
§ Dr. MoonieThere is no calculated contribution in respect of the Ministry of Defence's investment in research and development. The commercial exploitation levy (CEL) is a form of royalty for any commercial sales of a design, use of special tooling or the granting of licences where MOD has contributed wholly, or in part, to research and development costs. There are no restrictions on the categories of contracts to which CEL applies, but the vast majority relate to equipment (including software), since MOD research and development funding is largely in support of the development of equipment. Details of the income derived from CEL over the last nine years are set out in the table. Data for 1990–91 could be provided only at disproportionate cost.
Commercial exploitation levy receipts: 1991–2000 Year £ million 1991–92 34.5 1992–93 15.0 1993–94 39.8 1994–95 33.0 1995–96 21.9 1996–97 90.5 1997–98 54.0 1998–99 57.0 1999–2000 17.5 Notes:
1.Figures include all Commercial Exploitation receipts collected by the Defence Bills Agency.
2.Figures exclude: VAT, DTI, France Jaguar/Lynx, MOD IPR licences and receipts from other international programmes not collected through the Defence Bills Agency.