Defence Export Services Organisation

HC Deb 17 July 2001 vol 372 c144W

Dr. Cable

To ask the Secretary of State for Defence what the net operating costs of DESO and related support functions were for the financial years(a) 1997–98, (b) 1998–99, (c) 1999–2000 and (d) 2000–01. [3815]

Dr. Moonie

The net operating costs of the Defence Export Services Organisation for each of the financial years requested were as follows:

Year	£ million
1997–98	14.380
1998–99	16.010
1999–2000	13.735
2000–01	12.360

These net operating costs are more than offset by benefits to the Defence budget, estimated at around £400 million a year, arising from DESO's activities. These benefits include a reduction in overhead costs for UK Procurement as a result of export orders, and receipts from Commercial Exploitation Levy and disposal of surplus Ministry of Defence equipment.