§ Lord Juddasked Her Majesty's Government:
What is the latest estimate of (a) total military expenditure by the coalition for the war and 190WA subsequent military activity in Iraq; and (b) the financial value of resources provided for relief, rehabilitation and reconstruction in Iraq.[HL255]
§ Lord Davies of OldhamIt is still too early to make an estimate of the total military expenditure in Iraq. However, the Ministry of Defence has drawn down £1 billion in last year's spring Supplementary Estimate from the £3 billion set aside to cover the cost of operations in Iraq. The Chancellor in his pre-Budget Report Statement confirmed that £2 billion has been carried forward into the Special Reserve for 2003–04 and in addition prudently set aside a further £800 million over two years; £500 million in 2003 04 and £300 million in 2004–05 for our international commitments in Iraq and the war against terrorism.
At the Madrid Donor's Conference in October the International Development Secretary, Hilary Benn, announced the Government's pledge of £544 million to support the reconstruction of Iraq over the three years from 2003. Of this, £296 million will be for the next two financial years, including bilateral funds and the UK's share of the proposed EU contribution to Iraq.