§ 47. Mr. Wingfield Digbyasked the Minister of Defence how the total of defence expenditure proposed for 1961ߝ62, as shown in the Estimates, compares in real terms with the 1952ߝ53 Estimates.
§ The Minister of Defence (Mr. Harold Watkinson)Net expenditure on defence in 1961ߝ62 is estimated at £1,655.6 million. If the consumer price index is taken as the basis for comparison, this would be equivalent to about £1,390 million at 1338 1952 prices. A calculation more closely related to the main components of defence expenditure, and therefore more accurate for purposes of comparison, would give a figure for 1952 of £1,170 million. The amount provided in Estimates for 1952ߝ53 was £1,377.21 million.
§ Mr. DigbyIs it not a fact that, despite increases in the national income and in Government expenditure, defence expenditure has remained moderately stationary, and is there not a case for an increase in the total of defence expenditure now, particularly having regard to the recent increase of £700 million in America about which we read in the newspapers today?
§ Mr. WatkinsonThis is always a difficult matter of balance. I think for the moment that we have struck the right balance between having sufficient defence funds to produce a well-balanced defence programme while not placing too great a burden on the economy as a whole. I note what my hon. Friend has said about increases in America, but I think for the moment that we have the best balance between strain on our economy as a whole and having enough money to give a balanced defence programme.
§ Mr. H. HyndWhy are all these arithmetical gymnastics about real terms never used when we discuss wages?