HC Deb 15 May 2002 vol 385 c642W
Mr. Hoyle

To ask the Secretary of State for Defence if he will make a statement on the future of Royal Ordnance. [55786]

Dr. Moonie

Royal Ordnance Defence (ROD) is a private company that is wholly owned by BAE Systems. It has been operating against a background of sharp decline in the worldwide demand for defence equipment. The Ministry of Defence is aware that ROD is currently carrying out a manufacturing strategy review to optimise its business such that it will remain viable and competitive in the defence sector. Any decisions that emerge from this review are a commercial matter for the company. ROD has also indicated that it intends to invest substantially in a number of sites across the United Kingdom. The MOD remains confident that ROD will continue to be a major producer of munitions for the United Kingdom armed forces, particularly through the framework partnering agreement that has been established between ROD and the MOD.