SECOND REPORT FROM THE EXPENDITURE COMMITTEE
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SECOND REPORT
The Expenditure Committee have agreed to the following Report:-
THE DEFENCE REVIEW PROPOSALS
INTRODUCTION
1. The evidence on which this Report is based was taken by the Defence and External Affairs Sub-Committee whose Members are Colonel Sir Harwood Harrison (Chairman), Sir Frederic Bennett, Mr. James Boyden, Mr. Bernard Conlan, Mr. Geoffrey Finsberg, Mr. Anthony Kershaw, Dr. Maurice Miller, Mr. John Roper and Mr. Neville Sandelson.
2. On 21st March 19741 the Secretary of State for Defence announced that he had initiated a review of current defence commitments and capa- bilities against the resources which, given the economic prospects of the country, the United Kingdom could afford to devote to defence. NATO would remain the first charge on the resources available for defence but the Government considered that the burden should be brought into line with those of our major European allies; there would be full consultation with our allies wherever their interests were involved.
3. On 3rd December 19742 the Secretary of State outlined to the House the Government's proposals arising from the defence review. The Govern- ment had decided that they should reduce defence expenditure as a propor- tion of gross national product (GNP) from its present level of 5 per cent. to 44 per cent. by 1983-84. The long-range estimates of defence expenditure as they stood in March 1974 would have amounted to 6 per cent. of GNP in 1978-79 and 51 per cent. in 1983-84. By comparison with those plans, the Government's proposals would save £300 million in 1975-76, about £500 million a year by 1978-79 and some £750 million a year by 1983-84, or a total over the whole period up to that date of about £4,700 million. Con- sultations with allies were to start immediately and a White Paper, detailing the decisions and saying how they were to be put into effect, would be published early in 19753.
4. We decided to make a general appraisal of the defence review proposals before final decisions were taken, and to publish our preliminary conclusions at about the same time as the White Paper was expected to be available. To this end, written and oral evidence was taken from Mr. David Greenwood, a Senior Lecturer in Political Economy (Higher Defence Studies) at Aberdeen University, and from the Ministry of Defence.
1 H.C. Deb., 21st March 1974, Written Answers Cols. 153-4.
2 H.C. Deb., 3rd December 1974, Cols. 1351-7.
The White Paper was later expected to be published by mid-March. 393320
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