Part of Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 18 April 1991.
Mr David Mellor
, Putney
12:00,
18 April 1991
Will you tell the House what you were thinking about, Mr. Speaker. No? I am disappointed, Sir. I shall have to answer the question.
The latest estimate for the addtional defence costs, to be spread over several years, is that they are expected to be of the order of £2½ billion.
However, I expect the bulk of these costs to be covered by cash contributions generously pledged by other Governments. In particular, although the Ministry of Defence's expenditure in 1991–92 is likely to be about £1½ billion above its planned level, I do not expect any significant net claim on the public expenditure reserve in the current financial year. Total cash contributions made or pledged by other Governments now total £2 billion, including the recent most generous pledge—which I am pleased to confirm and welcome—from the Government of Saudi Arabia of $1 billion.
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