THE EXPENDITURE COMMITTEE
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(4) Unqualified comparison of our defence expenditure with that of our NATO allies by reference to proportions of GNP can be misleading (paragraph 8).
(5) The defence review appears to have been generally well-conducted (paragraphs 9–10).
(6) We endorse the strategy of concentrating resources on NATO and, where possible, withdrawing from other areas (paragraph 11).
(7) We have reservations on the proposed cuts which affect the flanks of NATO, mobility, reinforcement capabilities and equipment, particularly with reference to the use of helicopters in the anti-tank role (paragraphs 19, 22, 24 and 25).
(8) The Royal Navy should co-operate to the utmost with other NATO Navies (paragraph 22).
(9) Special efforts should be made to sell MRCA outside the three partner countries; an urgent decision should be taken to redeploy or to sell any redundant Nimrod aircraft (paragraph 26).
(10) The equipment element in LTC 74 was not fully defined and may not have been wholly realistic (paragraph 27).
(11) The Ministry should consider reviewing their philosophy in regard to procurement of equipment and should consider particularly whether the high standards demanded by their operational requirements and specifica- tions could be lowered slightly in the interests of earlier introduction of equipment, lower cost and improved prospects of collaboration (paragraph 28).
(12) Every effort should be made to avoid undue delay in taking decisions on new equipment projects (paragraph 29).
(13) Further efforts should be made to reduce national R & D in the defence field by an increasing emphasis on collaboration (paragraphs 30-31).
(14) There may be scope for a critical review of civilian manpower (paragraph 33).
(15) Any costs falling on the defence budget which have been incurred primarily for employment or other domestic policy reasons should be identified and reported to the House (paragraph 35).
(16) The actual savings which may result from the review proposals, compared with LTC 74, could vary considerably from those estimated (paragraph 36).
(17) The review proposals allow some increases from the present level of spending, followed by a long-term levelling off of the defence budget (paragraph 37); in the long run, this should result in a significant reduction of defence expenditure as a proportion of GNP.
After the Ministry have studied these comments in detail, and the other views we have expressed, we shall expect to receive their observations at the earliest possible moment.
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A 6