Hawk Jets: Where Will The Extra Billion Come From?

12.00.00am BST (GMT +0100) Tue 15th Jul 2003

Responding to reports of a Cabinet split over a multi-billion pound defence contract for the provision of trainer jets to the Royal Air Force with Gordon Brown supporting competitive tendering and Patricia Hewitt and Geoff Hoon supporting BAe, Vincent Cable MP, Liberal Democrat Shadow DTI Secretary, said:

"The central priority here should be value for money and the best equipment for our Armed Forces."

"The question must be asked - is the Chancellor right in claiming that £1 billion could be saved by buying aircraft through a process of international competitive tendering?"

"If so, then Patricia Hewitt and the Geoff Hoon must explain where the additional £1 billion would come from - will it be through increased taxation or from existing departmental budgets?"