§ Mr. Kaufman
To ask the Chancellor of the Exchequer if he will list(a) the cost to date to the United Kingdom of the Gulf war, (b) the amounts of assistance to the United Kingdom's Gulf costs either provided or promised, stating the sums of money from each relevant country or organisation, and (c) the increased revenue to the Treasury resulting from increases in oil prices since 2 August 1990.441W
§ Mr. Norman Lamont
[holding answer 18 February 1991]: (a) The additional costs to the defence budget of the Gulf conflict so far assessed are some £1½ billion, including equipment lost and munitions used. Eventual defence costs, which would be spread over some years, are uncertain, but, allowing for continuation of the campaign, could be around £3 billion. There are also small costs on other public expenditure programmes and about £160 million of claims have been paid by ECGD to exporters against defaults by Iraq.
(b) Assistance promised to date amounts to about £1.4 billion. This includes in cash £660 million from Kuwait, about £275 million from Germany, about £250 million from the United Arab Emirates, about £15 million from Hong Kong and about £8 million from Denmark. Within this total we estimate that the assistance received to date is worth about £350 million. This includes half the German cash contribution, £25 million cash contribution towards transport costs from Japan and assistance in kind, such as the provision of food, fuel, water and accommodation by Saudi Arabia under the agreement for host nation support. Assistance in kind has also been received from Bahrain, Belgium, Canada, Denmark, Germany, Kuwait, Netherlands, New Zealand, Norway, Portugal, Romania, Singapore, Spain, Sweden and UAE.
(c) Government revenues have so far been little affected by the increase in the oil prices for a period after last August. The increase in revenue attributable to the higher oil prices in the second half of 1990 is likely to be around £1 billion. More than half this will be received in March this year, and the remainder in 1991–92.
§ Mr. Higgins
To ask the Chancellor of the Exchequer if he will list the various cash contributions towards the costs of the Gulf war promised by other countries to date, the dates when he expects each contribution to be paid; if the proceeds will be paid into the Consolidated Fund; and if he will make a statement.
§ Mr. Norman Lamont
[holding answer 22 February 1991]: The following financial contributions have been promised to date:
- Japan—$50 million (£25 million; received 18 January)
- Germany—DM800 million (about £275 million; £137 million received 20 February)
- Kuwait—£660 million
- United Arab Emirates—$500 million (about £250 million)
- Hong Kong—HKS230 million (about £15 million)
- Denmark—KR90 million (about £8 million)
The second tranche of the German contribution is expected to be paid in March. The dates of the other payments are not yet known. The Japanese contribution has been appropriated in aid of class 1—Defence—votes. The first part of the German contribution—DM400 million—has just been paid into our foreign currency reserves and the sterling equivalent will be credited to the Consolidated Fund.