HC Deb 23 December 1982 vol 34 cc657-8W
Mr. Dalyell

asked the Chancellor of the Exchequer how much in total has been paid out of the Contingencies Fund for matters connected with the Falklands campaign; and if he will publish a breakdown.

Mr. Brittan

[pursuant to his reply, 20 December 1982, c. 313]: £12 million has been advanced from the Contingencies Fund pending Parliament's approval of Supplementary Estimates. It is made up as follows:

£ million
Payment to the Marine and Aviation Insurance (War Risks) Fund towards losses and damage of merchant vessels, (class IV, Vote 4, Department of Trade) 4.3
Compensation to Falkland Islanders for their losses during the Argentine occupation of the islands, (class II, Vote 6, Foreign and Commonwealth Office) 2.1
Rehabilitation work in the Falklands Islands (class II, Vote 10, Foreign and Commonwealth Office: Overseas Development Administration) 5.6

The intention to use the fund for these purposes was announced on 23 June [Vol. 26 c. 107], 28 July [Vol. 28, c. 570] and 30 July [Vol. 28, c. 647] respectively. The advance in respect of the Marine and Aviation (War Risks) Fund was repaid when the summer Supplementary Estimates were approved. The other two will be repaid when the winter Supplementary Estimates have been approved.

The hon. member may also be interested in the extent to which expenditure related to the Falklands campaign has been charged to the Contingency Reserve which is, of course, quite separate from the Contingencies Fund. So far £379.7 million has been charged to the Reserve, made up as follows:

£million
Part of the payment to the Marine and Aviation (War Risks) Fund 2.8
Rehabilitation work in the Falklands 5.6
Ministry of Defence winter Supplementary Estimate for additional expenditure on fuel, charter and requisitioning of ships, cold weather clothing etc. (class I, Vote 1). 371.3
Other expenditure has been met from savings in existing public expenditure programmes.