Gulf War: Costs (Hansard, 31 January 1991)

§ The Parliamentary Under-Secretary of State, Ministry of Defence (The Earl of Arran)
My Lords, your Lordships will be aware that yesterday Germany made a contribution of some £275 million towards United Kingdom costs. Germany has also provided artillery ammunition as well as a substantial support package, including specialist vehicles, air transport and other spares. Belgium is providing air transport, medical support and logistic assistance. The Netherlands has provided artillery ammunition and is providing medical support. We are very grateful for the practical assistance our allies have provided for British deployments in the Gulf.

§ Lord Boyd-Carpenter
My Lords, is my noble friend aware that many of us wish warmly to congratulate the Foreign Secretary on the successful outcome of his visit to Germany in securing a payment that had previously apparently not even been offered? The House will be indebted to him for his successful effort. However, does my noble friend's Reply mean that in financial terms neither Belgium nor Holland has contributed a penny?

§ The Earl of Arran
My Lords, that is quite correct at the moment. However, as regards material and military support both Belgium and Holland support us with medical units.

§ Lord Mulley
My Lords, I agree with the noble Lord, Lord Boyd-Carpenter, in congratulating the Foreign Secretary. I also agree that some of our other NATO allies could have been a little more forthcoming in their support. More seriously, I was extremely concerned at the report that Germany was withholding crucial Tornado spares which our forces may need. That raises a further question as to whether it is wise to become involved in European co-operative ventures where the production is shared among the partners if de facto it gives each of the partners a means of veto over the use of aircraft in each country. Can the noble Earl give us an assurance that Germany will not seek to hold back Tornado parts that our forces may need?

§ The Earl of Arran
My Lords, I cannot give any assurance in that direction because it is up to the German nation. Other initiatives have been launched by Ministers, who will visit many countries for additional assistance in the light of the increased cost of the operations.

§ Lord Cledwyn of Penrhos
My Lords, we also welcome the assistance which we are to receive from Germany. Will the noble Earl confirm that the build-up cost of arms to the United Kingdom before the war broke out was £1 billion and the cost of the war is currently £3 million a day? Against that background, is not the United Kingdom receiving proportionately less than the United States from other countries that made a contribution such as Saudi Arabia? Given that Saudi Arabia gave 36 billion dollars to the United States, is there any chance that the United Kingdom, which is making an outstanding contribution, should receive at least a little more?

§ The Earl of Arran
My Lords, to answer the noble Lord the Leader of the Opposition, first, the figure for the build-up cost so far is £1.25 billion; secondly, the full operating cost of forces in the Gulf has risen to somewhat more than £4 million per day.
As regards further financial contributions from Japan, this country has received a significant amount from the 2 billion dollar fund set up to assist nations' contributions to the Gulf effort. It has recently announced a further 9 billion dollars in addition to the fund from which we hope to benefit.

§ Lord Rippon of Hexham
My Lords, can my noble friend confirm or deny reports that the Belgians refused to supply British forces with ammunition?

§ The Earl of Arran
My Lords, that was initially correct but we hope that that episode is at an end. There are government initiatives and much negotiation is going on with other countries across the world for further money and military aid.

§ Lord Mellish
My Lords, with great respect to what the Minister said, the contribution from Belgium is absolutely farcical. That country owes much to us and people like us and it is nonsense to talk about European unity when the contribution of a country like Belgium is negligible. Is the Minister satisfied with what it is doing?

§ The Earl of Arran
My Lords, Belgium may have had initial problems in providing anything concrete from the point of view of military aid or financial assistance in the first instance. But it is on its way. It is providing medical support, air transport and logistic support.

§ The Earl of Onslow
My Lords, are the Belgians providing the ammunition? Are the Germans allowing the forces Tornado spare parts? May we have a straight answer to those two questions?

§ The Earl of Arran
My Lords, to the best of my knowledge Belgium is not providing ammunition. I shall have to write to my noble friend concerning the prohibition on the supply of German Tornado spare parts.

§ Lord Jenkins of Putney
My Lords, is this not among the many problems which the Government appear to have failed to take into consideration when they decided to become the chief ally of the United States in this enterprise? Are we to discover other matters which they may appear to have forgotten?

§ The Earl of Arran
My Lords, as I have already indicated, strong negotiations are under way under ministerial initiatives with many countries throughout the world for further money and further military assistance.

§ Lord Molloy
My Lords, have the Government made approaches or will they consider doing so to our colleagues in the EC to ascertain whether they are able to help so that wounded British servicemen may, if necessary, be accommodated or looked after in EC hospitals in Europe?

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

§ Lord Grimond
My Lords, the Government have mentioned negotiations taking place around the world. Does that include Japan?

§ The Earl of Arran
My Lords, I believe I have indicated that Japan has been generous and has made some 2 billion dollars available. Japan has also made a further sum of 9 billion dollars available from which we hope to receive our reward.

§ Lord Campbell of Alloway
My Lords, will my noble friend confirm that his narrative unfortunately must put paid to these ideas of a common European defence policy?

§ The Earl of Arran
My Lords, I cannot agree with that. As I have said, there is much to negotiate and I hope that much will happen in the near future.

§ Baroness Ewart-Biggs
My Lords, what decisions were taken at the outset of hostilities regarding the contribution that each country should make towards the costs of the war?

§ The Earl of Arran
My Lords, discussions on contributions towards the costs of the conflict have been taking place for some time. As my right honourable friend the Chancellor of the Exchequer has said, our forces will not be cash limited. They must have whatever is necessary.

§ Lord Stoddart of Swindon
My Lords, will the Minister reconsider the reply he gave to his noble friend Lord Campbell of Alloway? Would it not be foolish for this country to allow Europe to make decisions on our foreign policy, our defence policy and perhaps on the control of our armed forces, bearing in mind our recent experiences? Does this episode not show that the fanatical Euro-federalists are wrong?

§ The Earl of Arran
My Lords, the Question we are discussing relates to contributions towards costs.

§ Lord Jenkins of Hillhead
My Lords, will the Minister bear in mind the fact that while this country, in my view, clearly has an outstanding record on valour and willingness to act in relation to the Gulf, it might nonetheless be wiser to let our light stand out on its own and not go round lecturing anyone and making as many enemies as we can?

§ The Earl of Arran
My Lords, we are not lecturing anyone, nor to the best of my knowledge are we making enemies.