savings come mainly from earlier disposal of existing equipment and slowing down of some delivery programmes, compared with programme of predecessors. Very significant resource reduction achieved over the period of review.
13.
Service manpower reductions will be spread over a period and effected as far as possible by reductions in recruitment and re- engagement and normal wastage. Some redundancies but reasonable redundancy terms.
14.
Main objective is to redeploy resources over time to other areas of economy; this will be managed in relation to overall state of economy, flexibility of production units, adaptability of labour force and export performance of industries concerned. Long period of review enables adjustment to new levels of resources tl take place over the whole period until the mid-1980s. This will enable adjustments in terms of Service and civilian manpower and establishments, and secondary effects on industry and employment to be gradual and manageable with minimum of waste.
15. Forward plans inherited by Government in February 1974, implicit in 1974 Long term costing, would have required resources for defence to have risen, at constant 1974 prices, from £3667 in. or 51% of CMP in 1974/75 to 24500 in 1983/84 or about 21% a year in real terms. (More steeply rising curve in early years.) Implies about 51% of GNP by end of the period. Government considers this programme, on realistic assessment of present and future economic and political circumstances, wholly out of keeping with Britain's capacity and position in the world. Government's conclusions about future defence policy, commitments and capabilities outlined above would enable defence expenditure to be reduced to about 41% of GNP by the mid-1980s; and over the nine years of Review to save over £4,000 m. at 1974 prices, compared with programme of predecessors.
16.
But still an effective high-quality contribution to the Alliance.
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