8
MINUTES OF EVIDENCE TAKEN BEFORE THE EXPENDITURE COMMITTEE
21 January, 1975.]
Annex to Memorandum (Greenwood)
THE DECEMBER PROPOSALS
SUMMARY
[Continued.
1. The year-by-year cost of the revised defence programme to 1983-84 compared with the benchmark programme is estimated as:
Original Revised * Savings
£ millions at 1974 Survey prices
8-79|1979-
-83 1983-
|1975–76|1976–77 1977–78 1978-79 1979-80 1980-81 1981-82|1982–83|1983-84
61976-7719
4,000 4,070 4,150 4,300 4,400 4,400 4,450 4,500 4,500
3,800 3,800 3,800 270 350 500
3,700 300
3,800 600
3,800 600
3,800 650
3,800 700
3,750 750
The total "savings amount to £4,720 million, which is the "about £4,700 million" to which Ministers have referred.
2. The "input" breakdown of the 1974-75 budget compared with that envisaged for the five years from 1979-80 is as follows:
1974-75
1979-84
Per cent.
Per cent.
Personnel Expenditures Equipment Expenditures Other
47
45
35
40
18
15
...
Expenditure on equipment is planned to take a larger share in the revised budgets than it does at present.
3. The manpower reductions envisaged, compared with strengths at 1 April 1974 -and not in this case previous plans, are:
Uniformed personnel c.35,000 (RN: 5,000, Army: 12,000, RAF: 18,000). Civilian employees c.30,000 (UK c.15,000, Overseas c.15,000).
The reductions in the procurement programme are thought likely to reduce employ- ment in defence industries by some 10,000 over the period to 1978-79, though "it is likely that it could be more ".
4. The reductions in manpower and hence personnel expenditure-will be achieved by:
(a) reduction of force levels outside Europe, mainly Army and RAF, viz.
(i) reduction of the Hong Kong garrison.
(ii) “early reductions" in Cyprus, perhaps leading to eventual withdrawal. (iii) withdrawal from Singapore/Malaysia and Indian Ocean bases.
(iv) withdrawal from Malta after 1979.
(b) disbandment of certain units of UK Land Forces arising from reduced
provision for reinforcing NATO.
(c) reductions in the RAF's transport force by half-made possible by the decisions at (a) and (b) above: this rundown to take place "progressively against commitments ".