(DEFENCE AND EXTERNAL AFFAIRS SUB-COMMITTEE)
4 February, 1975.]
33
[Continued.
in LTC 74 had been expected to increase to 6 per cent. of GNP by mid- programme, as a result of the Defence Review there is a steady decline over the period following an initial levelling-off.
50. The level of savings against the previous programme is some 12 per cent. over the period as a whole. In year by year terms, the percentage rises from 7 per cent. in 1975-6 to 11 per cent. in 1978-9, and 161⁄2 per cent. in 1983-4, the pattern being a realistic one of the gradual achievement of substantial savings.
The Savings analysed by Services and by Function
51. The spread of savings will be subject to adjustment, year by year, within the totals, depending on the progress achieved in implementing the detail of the programme. The distribution by Services which follows is unlikely, therefore, to be a precise forecast, but it will be of about the right order.
£ million: 1974 Survey Prices
1975-76
1976-77
1977-78
1978-79
1979-80 to 1983-84
Navy
Army
75
65
75
130
225
90
75
110
140
160
Air Force
105
85
115
170
230
Procurement Executive
30
35
40
40
35
Miscellaneous
10
10
15
10
300
270
350
495
660
(rounded
(annual
500)
average)
Thus, of the total savings, some 31 per cent. is attributed to the Navy, 26 per cent. to the Army, 34 per cent. to the Air Force, 7 per cent. to the Procurement Executive, and 2 per cent. to the Miscellaneous category.
52. The full functional analysis of the Defence Review programme will be made later in the year, when the consultation process is complete, and against the up-to- date programme costing which will be available in the Spring. However, the savings can be broken down by the principal resources, as follows:
£ million: 1974 Survey Prices
a. Manpower
b. Equipment ...
c. Other
:
1979-80
1975-76
1976-77
1977-78
1978-79
to 1983-84
30
55
105
125
260
160
210
305
455
40
80
85
85
80
300
270
350
495
660
(rounded
(annual
500)
average)
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