§ 71. Mr. Onslowasked the Secretary of State for Defence what financial return his Department derives from the defence sales effort, to offset costs incurred and provide funds for further expansion.
§ Mr. MasonI would refer the hon. Member to the answer given on 23rd June 1976 to the hon. Member for Carmarthen (Mr. Evans)—[Vol. 913, c.523]—which provided the estimated receipts for overseas sales of defence equipment 99W by MOD in recent years. The selling prices cover the cost of production of the items sold together with appropriate overhead costs including interest on capital employed. These receipts benefit the defence budget and the aim is to secure future overseas orders to the maximum extent possible. The effort devoted to defence sales is considered in the context of the Department's manpower planning.