§ The PRIME MINISTERI am now in a position to announce the decision to which the Government have come in respect of the Naval Programme and of naval expenditure in general. We have found it possible, in view of the peaceful outlook of the world, and the absence of any naval antagonism between Great Powers, very largely to modify the proposals for new construction which were adumbrated two years ago.
We consider that the requirements of fleet-replacement will be met if two cruisers are laid down in October of this year, and two more in February; and, by an annual construction of three cruisers thereafter, during the normal life of the present Parliament. I should add that some of these cruisers will conform to the existing 10,000-ton type, and the remainder will be of a smaller and less expensive type, which the Admiralty have designed of approximately 8,000 2422 tons displacement. We have also decided that an annual construction of nine destroyers and six submarines, together with certain ancillary vessels, will be required, beginning in the financial year 1926–27, and likewise continuing during the normal life of the present Parliament. The situation must then be reviewed by the new Parliament in the light of the circumstances of that time.
As far as this year is concerned, the Admiralty will meet the additional expense—namely, £527,170, from savings on other heads, and from certain underspendings which are likely to accrue. Consequently we shall only have to ask Parliament for a token Supplementary Vote before we separate. It is only in the event of His Majesty's Government being satisfied that such savings cannot be made that Parliament will be asked to make any additional provision this year in respect of the commencement of this new programme. A White Paper will be laid, I hope on Monday next, showing the expense in future years.
It is not, however, proposed to allow the increased expense necessarily to con- 2423 stitute an addition to the total of the Navy Estimates. On the contrary, the Admiralty will make every endeavour by effecting substantial reductions upon the maintenance and other charges of the Navy, to diminish the extra cost of the New Construction. Moreover, with the purpose of securing every possible reduction in naval expenditure, and generally throughout the Service Departments, a Committee of three persons not connected with the Government will be appointed as soon as possible to examine the maintenance costs and interior economy of the Navy, the Army, and the Air Service, and to propose to the Government by interim reports the measures by which the burden upon the taxpayer can be actually reduced.
This inquiry will in no way supersede the ordinary functions of the Treasury in regard to departmental expenditure. The reports of the Committee and the representations of the Treasury will be dealt with by the Cabinet Committee already appointed on public economy, which will at the same time be reviewing the expenditure of all Departments, civil as well as military, in connection with the Estimates for next year.
§ Mr. A. HENDERSONIt would be improper for me to say anything in reference to this important statement at this juncture, but I beg to give notice that the official Opposition will call attention to this statement on Tuesday next, and it is for that reason we have asked for Vote 8 to be put down on that day.
§ Lieut.-Commander KENWORTHYThe Prime Minister has spoken of three cruisers every year for the normal life of this Parliament. Does he mean that this programme is drawn up without reference to what ships may be built abroad, or will that affect the matter?
§ The PRIME MINISTERWhile I think matters of that kind would be much better dealt with in Debate, I would remind the hon. and gallant Member and the House generally that this is entirely a replacement programme, and it will be explained during the Debate how the figures have been arrived at after a careful examination of the length of the life of the cruisers which it is proposed to replace.
§ Major HORE-BELISHAI would like to ask if the Government have come to any decision as to where these cruisers are to be laid down? With reference to the Prime Minister's statement, will he undertake that the sum that will be expended on these cruisers will not be saved out of the marriage allowance which the House has already voted to naval officers?
§ The PRIME MINISTERThe generous competition which will undoubtedly arise as to where these cruisers should be built will be dealt with in due course.
§ Mr. THURTLEWhen may we hope to get a Government with the courage to put the Admiralty in its proper place?
§ Major HORE-BELISHACan I have an answer to my question about the marriage allowance to naval officers?
§ Mr. DENNIS HERBERTI understood the Prime Minister to say that two cruisers were to be laid down in October and two in February, and then he spoke of three thereafter every year. Does that mean after the two have been laid down in February that three will be laid down in the latter part of next year?
§ The PRIME MINISTERNo. It means in the course of the financial year.
§ Mr. D. HERBERTThe financial year beginning March next?
Viscountess ASTORIs it possible for the Prime: Minister to give an answer about the marriage allowance to naval officers?
§ The PRIME MINISTERThat has really nothing to do with this question, but it can be answered on Tuesday in Debate.
Captain BENNCan the right hon. Gentleman give us the names of the members of the Committee which is going to examine the expenditure of the three Services?
§ The PRIME MINISTERI think that is a perfectly reasonable request, and I hope to be able to announce them as soon as I have received acceptances from the gentlemen I propose to ask.
§ Sir NEWTON MOORECan the Prime Minister give us any information as to the speed of the 10,000-ton cruisers?