§ Mr. Liddell-GraingerTo ask the Secretary of State for Defence (1) if he will ensure that the negotiations between his Department and BAE Systems over explosive manufacture include the true cost of overseas production; [45100]
(2) what state negotiations between his Department and BAE over explosive manufacture are at; [45099]
(3) when the negotiations between his Department and BAE Systems on the requirements for explosives are due to be completed. [45101]
§ Dr. MoonieThe Ministry of Defence (MOD) maintains a continuous dialogue with Royal Ordnance Defence (ROD) about the supply of explosives under the 10-year MOD/ROD Framework Partnering Agreement (FPA). In accordance with the provisions of the FPA, the Department is required to maintain a schedule of business. This details current contracts with ROD and provides visibility of MOD's potential future requirements. The schedule of business is reviewed on a quarterly basis with ROD.
The sourcing of component parts for individual munitions is a matter for ROD. The company will source these parts as necessary to ensure that the requirements of the MOD for safe and reliable munitions will continue to be met in the most cost-effective way. Enshrined in the FPA is the principle of open book accounting, which ensures that the MOD has full visibility of ROD costs.