Military Equipment: Sales

Lord West of Spithead Excerpts

Wednesday 30th January 2019 Lords Chamber

Asked by

[Lord West of Spithead]

To ask Her Majesty’s Government, following the liquidation of Used Equipment Surplus and Storage Ltd, what assessment they have made of security concerns over the proposed sale of military equipment held by that company on behalf of Leonardo S.p.A.

[Baroness Goldie (Con)]

My Lords, the Ministry of Defence takes the safety and security of the disposal and storage of military equipment extremely seriously. Officials have visited the site on a number of occasions. I understand that Leonardo has today had further discussions with the liquidator, and is confident that the identified equipment is not sensitive. The two parties are now working closely together to bring this matter to a sensible conclusion.

[Lord West of Spithead (Lab)]

I thank the Minister for that Answer. I remain concerned about this. Having been deeply involved in the intelligence world for many years, I know the value of getting hold of equipment such as defensive aids, because you can reverse-engineer it, and look at it to see how that country is developing techniques, even if it is an old bit of kit. I am aware that a police investigation in December 2017 highlighted the fact that the police felt that some items were sensitive. Was this a List X firm and a List X-bonded warehouse? Are we now going to go through in detail the equipment listed by the liquidator to see if there is anything we should not have allowed to go on to the open market? It sounds very dangerous indeed.

[Baroness Goldie]

The storage company, UES&S, was contracted by Leonardo to provide secure storage and disposal of military equipment that Leonardo no longer required. There was no contract between that disposal company and the MoD. I reassure your Lordships that the MoD has investigated Leonardo’s disposal practices, and concluded that the company is following all relevant processes and disposing of equipment in accordance with government policy and its List X obligations. As the noble Lord will be aware, these obligations are onerous, and apply to all items of equipment listed as secret and above.