§ Mr. Home RobertsonTo ask the Secretary of State for Defence if he will make a statement on the impact on his Department's budget of the reduction in the value of sterling in relation to other European currencies and the dollar.
§ Mr. Archie HamiltonAs explained in Supply Estimates 1992–93 (HC273-I), about 10 per cent. of the defence budget is to be spent in US dollars and deutschmarks during 1992–93. As in previous years, the MOD has bought forward the bulk of its estimated requirements for these two currencies through the Bank of England in accordance with government accounting practice. Recent changes in the pound's value should not therefore lead to significant additional expenditure in 1992–93. The requirement for other European currencies is less than 1 per cent. of the total defence budget and any effect of the change in the pound's value is likely to be small.