HC Deb 26 June 1984 vol 62 cc800-1
14. Mr. Beith

asked the Secretary of State for Defence if he will make a statement on the future size of the United Kingdom's financial commitment to the North Atlantic Treaty Organisation.

Mr. Heseltine

Defence expenditure will show further real growth in 1985–86, when it will be about one fifth higher than in 1978–79. Some 95 per cent. is devoted directly or indirectly to Alliance tasks.

Mr. Beith

Does the Secretary of State accept that unless service pay increases are held down to 2.5 per cent. in 1986–87 there will be no real growth in defence expenditure? Will he hold down service pay to that extent, or will he withdraw other NATO commitments?

Mr. Heseltine

I do not accept the hon. Gentleman's calculations. Service pay is only part of the defence budget and within the budget there are cash assumptions to take us from one public expenditure period to another. There is a need in this area, as in all others, to recognise the overall requirement for constraint.

Mr. Robert Atkins

Has my right hon. Friend had any conversations with the Supreme Allied Commander, Europe, who requested that Britain, along with the rest of the membership of NATO, should increase its defence budget by more than 3 per cent?

Mr. Heseltine

I am fully aware of the views of the Supreme Allied Commander, Europe, who, in the light of the growing Soviet threat, is urging that larger resources be made available for defence. I think that he will be the first to recognise the real contribution that the Government have made, having increased the defence commitment by £3,000 million per year since we were elected.

Mr. Douglas

What representations has the Secretary of State made to our NATO allies about taking cognisance of the fact that in years to come Trident will consume 30 per cent. of the Navy's procurement budget and is therefore likely to denude naval resources of Britain's real and specialised role within NATO for its frigates and other ships?

Mr. Heseltine

Rather than misrepresent the position to our NATO allies I would tell them the truth, which is that throughout this decade real expenditure within the Navy budget will be higher than it was when the Government came to power, despite the fact that we have also to pay for Trident.

Mr. Soames

Does my right hon. Friend agree that it is good news that today Lord Carrington should be taking up his position as the head of NATO? Does he agree further that NATO should begin a period of introspection and examine its own structures? Should we not insist that there should be a thorough overhaul of the institution and its strategy?

Mr. Heseltine

I am grateful to my hon. Friend. It gives me the greatest possible pleasure to support his warm tribute to Lord Carrington. I am sure that the House will recognise that no more admirable or qualified person could have been found to take on the job of Secretary General of NATO. It is necessary to keep under review the strategies and procedures of the NATO Alliance, but we should not lose sight of the fact that the Alliance has helped to deliver the longest period of peace in contemporary European history.