HC Deb 22 March 1979 vol 964 cc1672-3
5. Mr. Hugh Jenkins

asked the Chancellor of the Exchequer how the Government's decision to increase military spending will be affected by cash limits.

The Chief Secretary to the Treasury (Mr. Joel Barnett)

I refer my hon. Friend to the answer I gave on 23 February to my hon. Friend the Member for Thornaby (Mr. Wrigglesworth) in the Official Report, Vol. 963, c. 334–5.

Mr. Jenkins

If cash limits can be breached so easily for defence purposes, why are they sacrosanct elsewhere?

Mr. Barnett

My hon. Friend is wrong in his first premise, so the second part of the question does not stand.

Mr. Adley

If the Government are to put taxpayers' money to any useful purpose, is it not worth while putting it where it could provide a useful return? Will the Government consider allocating further funds for the Defence Sales Organisation so that we may try to sell more aircraft and tanks to the Chinese, for example, which would help our balance of payments?

Mr. Barnett

Not surprisingly, I am blessed if I can see what the hon. Gentleman's question has to do with the question on the Order Paper. Defence sales are separate from cash limits.