§ Dr. David ClarkTo ask the Secretary of State for Defence how much money was paid in advance to BT for telephone line rentals in each of the last five years; if his Department included in its calculations the interest lost in this process; and if he will make a statement.
§ Mr. SoamesAs reported in paragraph 63 of the report, entitled "Ministry of Defence: Management of Telephones" (HC 637), some £30,000,000 a year was paid in advance to BT for telephone line rentals in the period prior to financial year 1993–94. This practice of paying yearly in advance was discontinued in 1993–94, and such bills are now paid quarterly in advance, representing a substantial saving to the Exchequer in additional cost of borrowing that would otherwise have been required.