§ Mr. Eggarasked the Secretary of State for Defence if, pursuant to his reply of 6 February, Official Report, column 594, he will indicate (i) how the availability of spare capacity is identified and (ii) how marginal cost is calculated and whether account is taken of the ability of the purchaser of the service to pay; and if he will publish the guidelines for deciding whether significant publicity, recruiting, training or other defence benefits accrue to his Department from the services provided.
§ Mr. LeeSpare capacity arises where resources can be made available without detriment to their primary defence role; for example, where standby capacity is maintained, or where the defence demand is variable. Availability is frequently identified as part of normal management responsibilities, with account being taken of the scope in the longer term for matching capacity more precisely to the requirement.
Marginal cost is calculated by assessing the elements attributable to the service in question, taking account in particular of the time scale involved. Market considerations, such as ability to pay, can play a part in fixing a charge, provided that there is a defence interest in providing the service at all, and that there is no loss to defence funds. A judgment on whether significant benefits accrue to MOD is made on a case by case basis. No central document lays down general guidance.