§ Mr. LawsTo ask the Secretary of State for Defence what the cost of the Defence Export Services Organisation was in 2002–03; what his estimate is of the projected cost in each year to 2005–06; and if he will make a statement. [156710]
§ Mr. IngramOperating costs for Defence Export Services Organisation (DESO) for the last and current financial years are as follows:
Financial year Net operating costs (£ million) 2002–03 11.944 2003–041 15.583 1 Figures for 2003–04 are forecasts for the year. The DESO budgets for financial years 2004–05 and 2005–06 have not yet been finalised, and I am withholding projections of the costs in these years under exemption 2c of the Code of Practice on Access to Government Information.
The costs of DESO are more than offset by benefits to the Defence budget arising from defence exports. Savings to the defence budget come from spreading the fixed overhead costs of equipment over the longer production runs generated by exports, from the sale of 809W surplus military equipment to overseas governments, and from Commercial Exploitation Levy on exports of equipment developed using public money.