§ Mr. Redmondasked the Secretary of State for Defence what cost savings there are to his Department as a result of the fall in oil prices for the 1986–87 Budget.
§ Mr. StanleyAt current prices the volume of liquid fuel and lubricants provided for in the 1986–87 defence estimates will cost something of the order of £130 million
390Wless than was assumed when those estimates were prepared. The outturn will, of course, depend on future price levels, exchange rates and the actual volume purchased. The defence votes are managed as a block cash limit and so savings arising from lower oil prices may be used to offset pay and price increases elsewhere in the defence budget higher than allowed for in the estimates.