HC Deb 19 October 1949 vol 468 cc551-3
47. Mr. Swingler

asked the Minister of Defence if he will give an estimate of the increased cost of defence in the current year as a result of the devaluation of the pound.

48. Mr. Emrys Hughes

asked the Minister of Defence what is his estimate of the increased cost of the Defence Services following upon the devaluation of the pound.

The Minister of Defence (Mr. A. V. Alexander)

It is not yet possible to estimate the effect of the alteration of the sterling exchange rate on the cost of the Defence Services.

Mr. Swingler

Surely it is possible for the Minister to give some estimate, based on the dollar costs of overseas Forces. In view of the fact that the overseas military expenditure in the first part of this year shows almost 100 per cent. increase over last year, has the Minister taken steps to point out to the Government of the United States that this country cannot continue to carry this increasing burden?

Mr. Alexander

It is not yet possible to make a firm estimate. There are many concomitants in the make-up of a Defence Budget. Even in matters like raw materials, non-ferrous metals and the like, prices have not yet settled down.

Mr. Emrys Hughes

Can the Minister tell us what steps he is taking to help his right hon. and learned Friend the Chancellor of the Exchequer by reducing Defence Estimates?

Mr. Alexander

No, Sir, not at this stage.

Mr. Eden

On this question of the calculation I think we all understand the difficulties, but may I ask—for this question is of fundamental importance to our whole national position, since this decision was taken last August by the Government—whether they are really waiting to see the price of non-ferrous metals settle down? If so, how many months or years will they have to wait?

Mr. Alexander

I referred to other concomitants in the budget besides nonferrous metals. There are others which cannot yet be estimated. But the matter is well in hand, and it would be quite wrong for the right hon. Gentleman to assume that we had not paid attention to it. But I am not at this stage able to give a firm answer as to what the effect will be.

Mr. Eden

Can the right hon. Gentleman tell us when he will be able to give us that figure?

Mr. Alexander

Not today, Sir.

Mr. Eden

Can the right hon. Gentleman give any estimate of when the Government will be in a position to discharge their primary duty of giving an estimate of the effect on defence costs of devaluation, which they themselves decided?

Mr. Alexander

The House will always get the information it requires at the proper time, and I can assure it now that it will get it at the proper time.

Mr. Wyatt

If it was possible for Treasury officials to work out in detailed estimates, the increase in the cost of living as a result of devaluation, why has it not been possible for my right hon. Friend's officials to work out similar estimates of the increase of the cost of the Armed Forces?

Hon. Members

Answer.

Mr. Alexander

I do not accept the interpretation in the first part of my hon. Friend's question. I am quite sure that the estimates given then of the cost of living were only for a period, not for a long term.

Major Legge-Bourke

I understand that the right hon. Gentleman cannot give the amount involved, but can we be assured that the officers and other ranks serving overseas in the dollar area will have their pay and allowances made up to what they were before devaluation?

Mrs. Manning

Money for jam.

Mr. Scollan

Are we to take it from the answers to these questions on estimates that my right hon. Friend's Department is totally unable to control the estimates, and simply has a blank cheque, and endeavours to meet the bill when it is handed in?

Mr. Alexander

My hon. Friend would be quite wrong in understanding that. He would be all wrong. I have been in public life and at this work too long to be led into these traps.