HC Deb 27 January 1998 vol 305 cc185-6W
Mr. Hesford

To ask the Secretary of State for Defence where the overseas offices of the Defence Export Services Organisation are situated; if he will list for each office(a) the date it was established, (b) the number of staff currently employed there and (c) the running cost in the last year for which figures are available. [24837]

Mr. Spellar

DESO offices are located overseas are as follows:

Date established Number of staff Budget 1997–98 (£000)
Australia 1989 2 106
Brunei 1995 2 104
Germany 1991 16 340
India 1984 5 49.5
Indonesia 1991 3 190
Kuwait1 1988 9 149
Malaysia 1986 4.5 172
Philippines 1997 3 213
Saudi Arabia2 1985 99.5 104
South Korea 1988 2 108.8
Thailand 1992 2.5 110
Turkey 1988 1 74
1 Six staff are employed in the Kuwait Programme Office and are funded by the Customer.
2 97 staff are employed on the A1 Yamamah programme and are funded by the customer.

Mr. Hesford

To ask the Secretary of State for Defence if he will make a statement on the total administrative cost of the Defence Export Services Organisation in(a) 1994–95 and (b) 1996–97. [24839]

Mr. Spellar

The net running cost of operating the Defence Export Services Organisation in my Department was £10.94 million in Financial Year 1994–95 and £16.61 million in Financial Year 1996–97.

During this latter year, the organisation generated some £84.4 million from sales of surplus military equipment. Additionally, as a result of overseas orders, the Department annually secures around £50 million in Commercial Exploitation Levies and saves around £344 million on its own procurement costs by spreading overheads over higher levels of production. DESO therefore earns benefits for the taxpayer that far outweigh these costs.