§ 19. Mr. Molloyasked the Secretary of State for Defence what percentage of the gross national product Her Majesty's Government now propose to spend on defence.
§ Mr. HealeyA forecast of expenditure for 1967–68 will appear as usual in the 1967 Statement on the Defence Estimates. For later years an estimate cannot be given, as explained in my reply to my hon. Friend the Member for Heywood and Royton (Mr. Barnett) on 9th November last.
§ Mr. MolloyReferring to the figure and the report which my right hon. Friend mentioned, would not he acknowledge that the ramifications of the figure, particularly in materials, manpower, energy and endeavour, can only have a crippling effect on the efforts being made by working people to restore the economy of our nation and that there must be a very serious look at what is involved, notwithstanding the fact that we have certain international commitments? Unless this is done, the probability is that we shall end up in a disastrous situation on the economic and defence fronts.
§ Mr. HealeyOf course, the Government are aware of the economic implications of defence expenditure. That is why last year it took a decision which saved the country £400 million on the 416 defence budget planned by the previous Government.
§ Mr. PowellWhen will the right hon. Gentleman at last abandon the pretence that the gross national product in 1969–70 is likely to be anything approaching the figure on which he based his Defence Review last year?
§ Mr. HealeyAs the right hon. Gentleman knows, that is not a question for my Department.