Further supplementary memorandum from
the Ministry of Defence
Set out below are the MOD responses to the questions
raised in the Select Committee's letter dated 30 November regarding
the 2009-10 Winter Supplementary Estimates Memoranda.
1. The Public Expenditure 2008-09 Provisional
Outturn publication shows that the Ministry of Defence has a stock
of Resource EYF of £646.7 million of which £60 million
is near-cash. Your Memorandum provides details of the near-cash
EYF but there is no mention of the remaining £586.7 million.
Could you please provide confirmation of your full stock of EYF
and what plans you have for its use in the future?
MOD plans to draw down £20 million of near cash
EYF stock to reverse the impact of the planned MOD training costs
2009-10 budget reduction for the Territorial Army. There are no
other plans to draw down remaining EYF stock in the 2009-10 SSE.
Our full EYF stock is shown in the table below.
TABLE OF CURRENT END YEAR FLEXIBILITY STOCK
| End Year Flexibility
| Direct Resource DEL
£m |
Indirect Resource DEL £m | Capital DEL
£m
|
EYF Stock B/Forward from
2008-09 | 60
| 587 | 0 |
EYF Stock Drawn Down at
2009-10 WSE |
(20) | 0 | 0 |
| Balance | 40 |
587 | 0 |
2. Table 8 in the Estimates Memorandum shows that the
latest forecast for Military Personnel in Iraq has increased from
£37 million to £39 million. Why has therefore been such
a substantial decrease in the forecasts for stock/other consumption
(£189 million to £28 million) and Equipment Support
Costs (£231 million to £89 million)?
The revised 2009-10 WSE figures reflect a full year forecast.
The small increase in military personnel costs since Main Estimates
reflects the processing of operational allowances claims for personnel
based in Iraq throughout the year.
As advised in the Government response to the HCDC report on 2009-10
Main Estimates, and again in our 2009-10 WSE Estimates Memorandum
(Para 5.3.1), forecasts of expenditure are considerably lower
than envisaged when the Main Estimates were published, due to
the accelerated drawdown process.
3. Could you please provide the Committee with further
information on the reason for the £15 million of Treasury
Fiscal Capital relief for lower than planned capital receipts
in Northern Ireland?
The Government has decided, subject to Parliamentary approval,
to gift a number of sites in Northern Ireland, which are no longer
required for defence purposes, to the Northern Ireland Executive.
The MOD has agreed £15 million capital relief from HM Treasury
in respect of the consequent reduction in receipts.
3 December 2009
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