PART 6Reports on overheads and forward planning etc

Strategic industry capacity report: forecast costs of maintaining industrial capacity43

1

The information described in each paragraph of this regulation may be expressed either—

a

for each of the sites described under regulation 42(1)(b), or

b

for each QBU,

and is only required for those sites or QBUs (as the case may be).

2

The strategic industry capacity report must contain—

a

a description of forecast costs for the five years following the last day of the designated person's accounting period, and a description of any anticipated changes in accounting policies or business practices that could have a significant effect on those costs;

b

a description of forecast labour requirements for those five years;

c

if cost recovery rates are used for any QBUs, an estimate of what those rates are likely to be for each such QBU over those five years;

d

a description of any policy—

i

to employ apprentices or recent graduates,

ii

to provide staff bonuses,

iii

for training and development of personnel,

and the approximate cost of that policy;

e

an explanation of the reasons for any material changes in the cost of maintaining industrial capacity; and

f

a description of any likely event or change in circumstances relating to qualifying defence contracts, qualifying sub-contracts or other defence contracts which could have a material effect on the ability of the designated person to maintain its industrial capacity.

3

The information required by paragraph (2) must be presented in the following categories—

a

qualifying defence contracts or qualifying sub-contracts;

b

other defence contracts;

c

all other contracts.