§ 8. Mr. Frank Allaunasked the Minister of Defence what is the percentage increase of the latest total of Defence Estimates compared with such expenditure in 1951.
§ Mr. WatkinsonThe total of Defence Estimates for 1962–63 is 53.5 per cent. above the actual net expenditure in 1951–52, but if the comparison is made in terms of constant prices, expenditure in 1962–63 is expected to be 2.4 per cent. below expenditure in 1951–52.
§ Mr. AllaunBut compared with, say, 1949, is not the increase 125 per cent—
§ Mr. NabarroNo.
§ Mr. Allaun—and is not the £70 million increase this year the biggest single increase in Government expenditure? Does the right hon. Gentleman foresee any further rise over £1,720 million? Is there to be no ceiling at all?
§ Mr. WatkinsonThe hon. Gentleman appears to be asking quite a different question. Perhaps the best way to answer him is to say that the fairest assessment is according to the slice of the gross national product which is 379 taken, and if he examines that he will see that it has fallen since the date about which he asked. As I said in the recent debate, it is the Government's hope to keep it at about 7 per cent. of the gross national product.
§ Mr. NabarroWould not my right hon. Friend agree that, both in defensive terms and in terms of attacking power, whether on a global, a regional or a local basis, the nation is getting immensely greater value for money from the present Estimates than at any time since the end of the last war?
§ Mr. WatkinsonI agree with my hon. Friend. I should just like to add—this is a matter which the House has to face—that I do not think one can pay a smaller insurance policy premium for peace than the present defence budget. It is, in my view, a perfectly justified share of the national income to try to keep peace in a very dangerous world.
§ Mr. PagetWhen the right hon. Gentleman says that the fair way to assess these things is by the proportion of the national product, will he consider applying that to his pensioners?
§ Dame Irene WardAnswer.