§ 6. Mr. Boyd-Carpenterasked the Secretary of State for Defence by what amount defence expenditure in 1968–69 including cancellation and transitional charges, will now exceed that incurred in 1967–68.
§ Mr. HealeyI would ask the right hon. Gentleman to await the Defence Estimates for 1968–69, which will be published next week.
§ Mr. Boyd-CarpenterDoes the right hon. Gentleman recall that the Government's own White Paper on public expenditure shows that before these cuts 1321 were decided there would have been a reduction in defence expenditure of £51 million next year? Does his answer mean that there may be no such reduction?
§ Mr. HealeyWe made it clear during the last debate that, as a result of the impact of cancellation charges following the, decisions taken in the recent expenditure review, we cannot guarantee that there will not be some increase in next year's estimates.
§ Mr. Frank AllaunWhy should it take four years to reduce arms expenditure when equally long-term expenditure for school and road building can be made in the twinkling of an eye?
§ Mr. HealeyFirst, I am not aware of any expenditure being cut in any Department in a twinkling of an eye. What I would point out to my hon. Friend is that the defence expenditure of most other Governments in Europe—particularly the Soviet Government—has been steadily increasing over the last four years and we have done well to hold ours where it was.
§ Mr. PowellIs it not the result of the. Government's decision that Government expenditure will be increased above what it would have been in the very period when it is most crucial, on the Government's own showing, to restrain it?
§ Mr. HealeyThis may be the case, but, as my right hon. Friend the Prime Minister and my right hon. Friend the Chancellor of the Exchequer have made clear repeatedly in recent weeks, the problem is not only to reduce expenditure during the current year, but over the next four or five years. The reduction in defence expenditure over the longer period will contribute substantially to the solution of our economic problems.