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Defence Expenditure

Volume 450: debated on Thursday 19 October 2006

To ask the Secretary of State for Defence whether the cost of operations in (a) Iraq and (b) Afghanistan in the 2006-07 financial year are being charged to the Treasury Reserve on a (i) marginal and (ii) full cost basis. (92982)

[holding answer 12 October 2006]: The Ministry of Defence identifies the costs of operations, in both Iraq and Afghanistan, in terms of the net additional (marginal) costs it has incurred. The costs that the Department would have incurred regardless of the operation taking place, such as wages other than operational allowances, are not included. Savings on activities that have not occurred because of the operation—training exercises for example—are taken into account in arriving at the net figures.