HC Deb 17 June 1998 vol 314 cc229-30W
Ann Clwyd

To ask the Secretary of State for Defence, pursuant to his answer of 21 April 1998,Official Report, column 556, what is the value of defence exports against which his forecast that £56 million of commercial exploitation levies would be raised from defence export sales in the next financial year was made; and what is the levy income as a percentage of the export sales figure. [44433]

Mr. Spellar

The target figure for new defence export orders in 1998–99 is £5 billion. The forecast of £56 million is a broad estimate of the commercial exploitation levies that are likely to be raised against those exports which may attract such levies in financial year 1998–99. There is, however, no direct correlation between this estimate and the overall export target for two main reasons. First, there is a delay between the agreement of export contracts and the receipt of commercial exploitation levies. Secondly, such levies are payable only on contracts covering the supply of equipment the development costs of which were funded wholly or partly by the Ministry of Defence. Contracts for the supply or equipment developed by the commercial sector, or for support, training and construction series, do not attract commercial exploitation levies. The rate of levy charged will vary for each item depending on the extent to which its development was funded by the MOD.

Ann Clwyd

To ask the Secretary of State for Defence what was the cost to public funds for the last two years incurred by branches of his Department other than DESO in the promotion of British defence exports. [46110]

Mr. Spellar

This information is not held centrally and could be provided only at disproportionate cost.