Oral Answers to Questions

Lord Arbuthnot of Edrom Excerpts

Monday 20th February 2012 Commons Chamber

[Mr Hammond]

The hon. Gentleman correctly identifies one of the lessons from the Libya campaign. Much of what came out of that campaign was positive, but clearly some shortfalls were identified. I must say that the finger must point primarily at those European members of NATO that fail to spend the target 2% of their GDP on defence. We will be looking to them to contribute the additional resources required to make good the shortfalls.

[Mr James Arbuthnot (North East Hampshire) (Con)]

I am delighted to hear that my right hon. Friend is close to balancing the books. Does that mean that we can look forward to an early set of accounts that are not qualified by the auditors, so that we can have confidence in what the books say.

[Mr Hammond]

Speaking candidly, I can say to my right hon. Friend that it will be a number of years yet, as the Department has made clear, before it is able to get an unqualified set of accounts. As Labour Members will know, that is largely due to a legacy problem associated with MOD inventory and the large quantity of stock items held in a form that the National Audit Office is not able adequately to audit. A solution is being put in place—a new IT system will resolve this problem over the next couple of years—and it should then be possible to get unqualified accounts.