Defence Expenditure (Hansard, 28 June 1979)

§ Mr. Churchill

asked the Secretary of State for Defence what is the estimated

1975=100
			Relative export prices	Terms of trade	Relative normal unit labour costs	Wholesale prices	Export prices of manufactures	Import prices of manufactures
			(a)	(b)	(c)	(d)	(e)	(f)
1975—Q1	…	…	100.1	98.7	n.a.	93.7	95	95
Q2	…	…	99.6	100.4	n.a.	98.5	97	97
Q3	…	…	100.1	100.8	n.a.	102.1	102	102
Q4	…	…	100.1	100.1	n.a.	105.7	106	106
1976—Q1	…	…	102	100.5	n.a.	110.7	111	110
Q2	…	…	96.4	98.5	n.a.	114.5	117	119
Q3	…	…	97.9	99.4	n.a.	119.2	124	126
Q4	…	…	94.2	98.2	84.9	125.2	132	136
1977—Q1	…	…	98.8	99.1	88.8	133.0	136	138
Q2	…	…	102.2	100.6	88.1	139.6	142	141
Q3	…	…	103.6	101.3	88.1	143.8	146	143
Q4	…	…	107.2	102.4	90.2	145.8	148	144
1978—Q1	…	…	110.5^*	105.7	94.7	149.2	151	144
Q2	…	…	104.2^*	104.9	92.2	151.8	154	150
Q3	…	…	107.4^*	106.1	94.1	154.8	159	154
Q4	…	…	n.a.	106.9	94.3	157.3	163	158
1979—Q1	…	…	n.a.	107.7	n.a.	161.6	168	161
Notes:
(a) The unit value of United Kingdom exports of manufactures divided by a weighted average of the unit value of competitors' exports of manufactures, both expressed in a common currency.
(b) Export unit value index as a percentage of the import unit value index, both covering total trade, on a balance of payments basis.
(c) United Kingdom normal labour costs per unit of manufacturing output divided by a weighted average of competitors' normal unit labour cost, both series being expressed in a common currency and adjusted for variations in productivity about long-term trends. The IMF has recently revised this series; consistent earlier figures are not yet available.
(d) United Kingdom wholesale price index of home sales of all manufactured products.
(e) Export unit value index of manufactures (Sections 5–8 of SITC (Rev 2)) in £ sterling terms.
(f) Import unit value index of manufactures (Sections 5–8 of SITC (Rev 2)) in £ sterling terms.
n.a.= Not available.
^*Provisional.

300W

effect on the defence budget of the increase in value added tax announced in the Budget; and what is the net increase in defence expenditure proposed for the current year.