Overseas Expenditure (Hansard, 18 January 1967)

§ 5. Mr. Powell
asked the Secretary of State for Defence what reduction in overseas expenditure in 1967–68 compared with 1966–67 he estimates will result from the withdrawals from Cyprus announced on 30th November.

§ Mr. Healey
I hope to include in the Statement on the Defence Estimates information about the overseas foreign exchange costs of our forces.

§ Mr. Powell
When are we to be told the details of the plan which we were told had been worked out in detail last July for a reduction in next year's Estimates of —80 million in overseas defence costs?

§ Mr. Healey
In the first place, the House was never told anything in precisely those terms, but I will, of course, give the House the fullest information possible of the plans for the defence contribution to the saving of £100 million in Government overseas expenditure during the coming year when the White Paper is published in a few weeks' time.

§ 20. Mr. Frank Allaun
asked the Secretary of State for Defence how he proposes to save the promised £80 million a year in overseas military expenditure.

§ 35. Mr. Dickens
asked the Secretary of State for Defence if he will state the progress achieved in effecting the reduction of £80 million per annum in overseas defence spending promised by the Government.

§ Mr. Healey
I expect to be able to give further information in next month's Defence White Paper.

§ Mr. Allaun
But was not that promise made six months ago? Is it to be kept—may we have an assurance on that—or is only a negligible fraction of our military overseas expenditure of £605 million a year to be saved?

§ Mr. Healey
I am not sure whether I should say "Yes" or "No". The fact is that the Government committed themselves to make savings during the next financial year at the rate of £100 million a year, and defence will carry by far the major part of those savings. I can assure my hon. Friend that we shall give such details of the way in which these savings will be secured as we are able to give in next month's Defence White Paper.

§ Mr. Dickens
Is my right hon. Friend aware that many of us on these benches regard this cut as the absolute minimum that we can accept in the forthcoming financial year? Will he use his very best endeavours to insist that the Government's defence policy is kept broadly in line with the official policy of the party which he supports?

§ Mr. Healey
It has been my constant endeavour for the last two and a half years to bring our defence expenditure into line with our resources. I am fortified by the knowledge that I have the support of many of my hon. Friends in doing so.

§ Mr. Hastings
Would not the right hon. Gentleman agree that considerable technical advantage accrues to industry as a whole from expenditure on defence equipment?

§ Mr. Healey
I certainly do, and I think that that is a consideration to be borne in mind, although I think that many of us would feel that often these advantages could be gained at very much lower cost if we attempted to secure them directly by investment in civil research and development projects.