The Gulf: Military Costs (Hansard, 13 February 1991)

§ The Parliamentary Under-Secretary of State, Ministry of Defence (The Earl of Arran)
My Lords, a substantial part of the costs have come from the reserve through winter and spring supplementary estimates. In addition, some of the costs have been met from the original defence budget and from contributions from other nations both in kind and in cash.

§ Lord Borthwick
My Lords, I thank my noble friend for his Answer. It is very interesting but not quite what I was looking for. My attention was drawn to something earlier. Can the Minister confirm that the UN Security Council should be responsible for collecting funds for the war rather than private or official individuals going round with the begging bowl?

§ The Earl of Arran
My Lords, that is not the case. It is the responsibility of individual member states of the coalition forces in the Gulf as to how they fund their requirements.

§ Lord Kennet
My Lords, can the noble Earl say anything about Saudi Arabia having to borrow from international institutions for the first time in its life in order to meet its quarterly commitment to the United States of 13.5 billion dollars especially in view of the fact that the United States is still financing Israel?

§ The Earl of Arran
My Lords, I cannot comment on that; it is an internal matter for Saudi Arabia. However, Saudi Arabia has been very generous to this country from the point of view of the material aid it is providing for our forces in the Gulf.

§ Lord Boyd-Carpenter
My Lords, are we receiving financial help from any of our colleagues in the European Community other than Germany?

§ The Earl of Arran
My Lords, as my noble friend indicated, Germany is providing £275 million. I understand that other countries are being approached. Obviously I cannot say who is being approached at what time.

§ Lord Mellish
My Lords, bearing in mind the enormous debt owed by Belgium and Holland to this country is it not time that instead of talking about it they did something about it? What does the Minister say about that?

§ The Earl of Arran
My Lords, the noble Lord has asked the same question before. I answered in regard to Belgium and Holland; I have nothing further to add.

§ Lord Molloy
My Lords, can the noble Earl assure the House that with regard to finances for our troops in the desert, not one single penny which can be garnered will be overlooked so that we can respond to their endeavour in a way which will be most practical?

§ The Earl of Arran
My Lords, as my right honourable friend the Chancellor of the Exchequer indicated, there are no limitations on the funding for our troops while they are in the Gulf.

The Lord Bishop of Manchester
My Lords, can the Minister say whether the cost of financing military operations includes the cost of reconstruction following the war in Kuwait and Iraq?

§ The Earl of Arran
My Lords, that is a Question for another day.

§ Lord Williams of Elvel
My Lords, when the Question was raised previously in your Lordships' House the noble Earl will recall that I asked about negotiations taking place between Her Majesty's Government and both Saudi Arabia and Japan to ensure that we received our fair share of the funding they were prepared to provide for the operations in the Gulf. At that time he replied that negotiations were still continuing. Can the Minister give the House any indication as to how those negotiations have progressed?

§ The Earl of Arran
My Lords, those negotiations are still in progress.

Lord Bruce of Donington
My Lords, will the noble Earl give the House an undertaking that all these questions and other matters associated with them will be borne in mind in the course of the intergovernmental conference that is taking place within the EC? The conference is alleged to deal with the progress that might be made in conceivable circumstances towards achieving economic and monetary union in Europe.

§ The Earl of Arran
My Lords, the conflict in the Gulf encompasses very wide scope. I am sure that all such points of view will be discussed and taken into account.

§ Lord Mackie of Benshie
My Lords, will the Government bear in mind that we went into this venture, I hope, on a point of principle and that we are prepared to pay the money? While contributions will be accepted we will not go round begging for money.

§ The Earl of Arran
My Lords, we are very grateful for the contributions that we have received. As I said, there will undoubtedly be additional costs. The contributions that we have already received will be taken into full account by my right honourable friend the Chancellor of the Exchequer.

§ Lord Borthwick
My Lords, I regret that my question was not quite answered. I asked who was responsible for collecting money. We went to war but not under our own name. We did so under the 107 protective name of the United Nations Security Council which actually declared war. We joined in the war. Does not my noble friend agree that that organisation is responsible for collecting cash and not individuals from various nations?

§ The Earl of Arran
My Lords, that is not the case. As I said in my original Answer, it is the responsibility of each nation which has coalition forces in the Gulf.