HC Deb 23 June 1981 vol 7 cc130-1
13. Sir William van Straubenzee

asked the Secretary of State for Defence what was the increase in expenditure on defence in real terms in 1980–81.

Mr. Nott

The final figures are not yet available, but the latest indications are that the increase was in excess of the 3 per cent. NATO aim.

Sir William van Straubenzee

Based on that encouraging start, will my right hon. Friend confirm that it remains his intention to fulfil the undertakings of the 1979 Conservative election manifesto in relation to defence?

Mr. Nott

I do not think that there can be any question but that we have fulfilled the Conservative election manifesto, both in meeting the NATO 3 per cent. aim and in our commitment to the Armed Forces Pay Review Body. There are no areas in which I feel that the Conservative Party has not lived up to what it said at the time of the election it would do.

Mr. Dubs

Will the Secretary of State confirm that the 3 per cent. NATO target was a figure plucked out of the air as being the most that NATO thought it could impose upon the NATO powers?

Mr. Nott

I do not know how the figure was orginally initiated, but in my view it has been an extremely valuable means of keeping all the NATO Allies up to the mark on defence spending. Many of them have met the 3 per cent., or even gone over it.

Mr. John Browne

Will my right hon. Friend give an estimate of the amount by which the expenditure should have increased in real terms to maintain the technology of defence, rather than just stay ahead of inflation?

Mr. Nott

That is an extremely difficult estimate to make, because defence inflation varies from year to year. On average, in the 1970s the difference was about 1½ to 2 per cent. over the general rate of inflation. In times of recession, it is very different from what it is during times of boom. It is therefore difficult to pluck a figure out of the air and say that that is the figure that applies.