 |
Rennie wants debate on the future of QiniteQ
March 7, 2006 5:00 PM
Speaking after a debate in Westminster on the future of defence science technology firm QinetiQ, which has a base in Rosyth, the local MP has called for the Government to clear up the mystery surrounding its sale.
Willie Rennie, MP for Dunfermline and West Fife, said it was vital that the Government comes clean on the facts behind the deal with the Carlyle Group in 2002.
The National Audit Office (NAO) announced last month that it was to conduct an inquiry into the affair. Carlyle, which owns 31% of the business, stands to make a profit of up to £370m from the flotation from its original £42m investment. The NAO is investigating whether the Ministry of Defence (MoD) - which currently owns 56% of the business - sold shares too cheaply to the private equity firm in 2002.
The Government's stake will be cut to about 24% following the flotation, while the Carlyle Group will own about 13% of the company. The float is the first privatisation by the Labour government since it came to power in 1997.
"I am very annoyed that so few of the employees at QinetiQ benefited from the initial sale of shares," said Mr Rennie. "That initial sale is now expected to deliver a huge windfall for senior management and the Carlyle Group. Along with the taxpayer it is the employees who have worked so hard at QinetiQ over a number of years that should really be benefiting.
"In today's debate the Armed Forces Minister, Adam Ingram, was asked some difficult questions which he failed to answer satisfactorily.
"I want to know whether the taxpayer received value for money from the original sale of shares, why so few employees benefited and the details behind the partnering agreement involving MoD firing ranges which was worth up to £5.5bn to QinetiQ."
What would you like to do next?
-
Subscribe for updates
Follow the party's activity on...
- Twitter:
- Liberal Democrats
- Facebook:
- Liberal Democrats
- YouTube:
- Liberal Democrats