Procurement Budget

Defence written question – answered on 26th January 2005.

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Photo of Ms Sue Doughty Ms Sue Doughty Shadow Minister (the Environment), Environment, Food & Rural Affairs

To ask the Secretary of State for Defence pursuant to his answer of 12 January 2005, Official Report, column 574W, on the procurement budget, how the figure of £300 million is comprised; from what sources he has calculated that figure; and if he will make a statement.

Photo of Adam Ingram Adam Ingram Minister of State (Armed Forces), Ministry of Defence

Our estimate that some £300 million annually is saved to the defence procurement budget has been constructed using information received from the defence industry on the value of export orders won, and on the share of fixed overhead costs in defence exports. Defence exports comprise services as well as goods, and the estimate also reflects an assumption that the value of non-equipment exports contain no fixed overhead costs.

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