HC Deb 23 July 2002 vol 389 cc912-3W
Llew Smith

To ask the Secretary of State for Defence if, in respect of his departmental minute concerning the Ministry of Defence's agreement with QinetiQ on the allocation of pre-vesting liabilities dated 8 July, he will withhold final approval of the proposed indemnity for inherited environmental liabilities to be provided for QinetiQ until such time as a detailed financial appraisal of the prospective size of the liabilities is provided to Parliament for debate. [72296]

Dr. Moonie

No. It is important to understand that the vast majority of environmental liabilities on freehold sites have transferred to QinetiQ. The small number of liabilities inherited by QinetiQ to which the departmental minute refers is being retained in Government as detailed analysis has shown that this represents best value for money in the light of reasonable commercial insurance not being available. The very low level of past claims and specialist analysis suggest actual risk associated with these specific liabilities is extremely small.