Fuels: Finance

Defence written question – answered on 24th January 2008.

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Photo of Gerald Howarth Gerald Howarth Shadow Minister (Defence)

To ask the Secretary of State for Defence what estimate he has made of the likely savings to the defence budget achievable through the adoption of fuel hedging.

Photo of Bob Ainsworth Bob Ainsworth The Minister of State, Ministry of Defence

Fuel hedging would not in the medium or long term necessarily provide any direct savings to the defence budget. However, it would reduce the impact of price changes.

"Government Accounting" precludes the use of fuel hedging to seek savings to the defence budget as this would involve speculation with taxpayers' money.

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