§ Llew Smith:To ask the Secretary of State for Defence if he will make a statement on the implementation of the long term partnering agreements on QinetiQ. [120789]
§ Mr. Caplin:The Long Term Partnering Agreement (LTPA) between the Ministry of Defence and QinetiQ came into effect on 1 April 2003. Under the Agreement, MOD retains ownership of its ranges and QinetiQ operates them on behalf of the Department to provide MOD with a long term test and evaluation capability.
The LTPA is worth up to £5.6 billion to QinetiQ and is expected to deliver savings to the MOD of around £700 million (at current prices).