§ Mr. Wainwrightasked the Secretary of State for Defence what accounting developments are being made in his Department to give line managers better information about the cost and condition of the capital assets they are managing.
§ Mr. ButlerThe Department has an extensive system of management accounts which cover some 70 per cent. of the defence budget, excluding procurement. These accounts include, besides running costs, the capital-related costs of activities. The condition of capital assets such as military equipment, plant and buildings is regularly monitored. Starting on 1 April next we are introducing a new system of executive responsibility budgets on an extensive scale within the support field. These arrangements, which are primarily aimed at promoting greater efficiency and economy, will help to encourage more extensive use of fixed asset registers and records of asset utilisation for management purposes. Managers will have an incentive to identify assets which can be better utilised or alternatively released for disposal.