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Falkland Islands

Volume 506: debated on Monday 22 February 2010

To ask the Secretary of State for Defence if he will estimate the total expenditure under the defence budget of the military presence in the Falkland Islands since 1982; and what estimate he has made of such expenditure in (a) 2009-10 and (b) 2010-11. (317591)

The costs from 1982-83 to 2008-09 (outturn figures) for the Falkland Island are as follows:

Financial year

£ million

1982-83

780

1983-84

637 (391)

1984-85

644 (403)

1985-86

572 (396)

1986-87

402 (236)

1987-88

229 (118)

1988-89

102 (59)

1989-90

68 (60)

1990-91

66

1991-92

72

1992-93

58

1993-94

67

1994-95

66

1995-96

70

1996-97

81

1997-98

76

1998-99

72

1999-2000

71

2000-01

143

2001-02

115

2002-03

120

2003-04

111

2004-05

113

2005-06

143

2006-07

65

2007-08

67

2008-09

70

From 1983-84 to 1989-90 you will note two figures are available. The higher figure includes garrison costs, the cost of replacing capital equipment lost and residual campaign costs associated with the Falkland conflict. The lower figure reflects just garrison costs.

There is some variation between years caused by what categories of expenditure were included. For example, in recent years figures do not include military equipment, military personnel pay, service children’s education facilities, estate works and maintenance, IT and communication, maritime visits or air charter. Costs associated with these activities are met by other top level budget holders. The MOD’s core budget is separated into eight top level budget holders (TLBs), each responsible for delivering individual military objectives. Within these TLBs the budget is not routinely allocated in terms of regions, but in terms of categories of expenditure. To provide the level of detailed breakdown of these categories in relation to the Falkland Islands would be of disproportionate cost.

The reason for the lower figures since 2006-07 is due to a change in MOD accounting policy, whereby reporting fixed asset depreciation costs and the cost of capital on fixed assets are recorded elsewhere.

The estimated costs for 2009-10 and 2010-11 are £70 million and £69 million respectively.