Royal Air Force Centrifuge

House of Lords written question – answered at on 7 June 2005.

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Photo of Lord Tebbit Lord Tebbit Conservative

asked Her Majesty's Government:

Further to the Written Answer by the Lord Bach on 7 April (WA 147), whether the announcement by Environmental Tectonics Corporation (ETC) made in the United States on 8 February that the company had resolved its dispute in relation to contract number AESIA/279 with a payment of £2.5 million by the Ministry of Defence is correct; and whether this represents the resolution of the dispute to which reference is made in the Answer.

Photo of Lord Drayson Lord Drayson Parliamentary Under-Secretary, Ministry of Defence, Parliamentary Under-Secretary (Ministry of Defence) (Procurement)

The statement by ETC that a dispute in relation to contract number AESIA/279 had been resolved was correct. A payment of £2.5 million was made by the MoD to ETC in full and final settlement of the legal dispute and covered additional work on the contract that supplied Integrated Avionics Maintenance Trainers (IAMT) to the Royal Air Force in 2002.

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