Chemring settles dispute with BBC over Gilligan landmine claims

Guardian ^ | 07/07/04 | David Gow

[Pikamax]

Chemring settles dispute with BBC over Gilligan landmine claims

David Gow Wednesday July 7, 2004 The Guardian

Chemring, the niche defence firm, yesterday settled a two-year dispute with the BBC over allegations by Andrew Gilligan that it had breached international law by selling landmines.

The company withdrew the threat of legal action against the corporation. "We are not in litigation mode," chief executive David Evans said.

Gilligan quit the BBC six months ago after the Hutton report savaged his claim on BBC Radio 4's Today that the government had "sexed up" its dossier on Iraq's weapons of mass destruction.

He had made the earlier allegations against Hampshire-based Chemring on Today in May 2002 after secretly record ing a company salesman purporting to supply him with 500 fragmentation grenades with tripwires for £25,000.

Separate investigations by Derbyshire constabulary and customs and excise cleared the company, which maintained all along it had stopped selling landmines before the 1998 ban came into effect.

Mr Evans indicated that the BBC had significantly altered its stance since the Hutton inquiry findings, which led to the resignation of both chairman Gavyn Davies and director general Greg Dyke.

Speaking of the BBC's "much more accommodating" attitude, he said the only issue now was correcting the record on the corporation's website.

"It [Gilligan's report] is a dead issue for Chemring. It was never true and no one is interested apart from the press," he said. "When people go searching the web I don't want the report to be there."

He added: "We are having a good and constructive dialogue with the BBC. Have you ever tried dealing with them? They just take so long to do stuff."

His comments came as Chemring confirmed that its business of providing infrared decoys for the United States and British air forces against incoming missiles is booming - and it is close to settling its long-running litigation with insurer Royal & SunAlliance.

Mr Evans, whose company is seeking £7.7m from RSA on top of £5.7m paid out over a fire at its Kilgore flares plant in the US more than three years ago, said a settlement should be reached before the end of October.

Reporting a 35% jump in first-half operating profits to £7.5m, he said Chemring now took 51% of its defence business from sales to the Pentagon; these also account for 36% of total turnover.

Aware that Monday's comprehensive spending review from the Treasury will trigger defence cuts in the UK, he said: "If we are going to expand it will be in the US, both organically and by acquisition. That's the place to be if you're a defence contractor."

Insisting Chemring had received no bid approach from a US contractor, he said it was on course to make up to £14.5m full-year profits.

[Mean Daddy]

Ok, let me be the first. What does the Skipper have to say about all this? Now it's out of our system...

[quietolong]

LOL

The Professor will take care of it.