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UK denies cuts in Iraq spending

IRNA

London, Nov 5, IRNA -- Defence Secretary Geoff Hoon denied Wednesday 
that military spending on Iraq was not being squeezed by budget 
restraints. 
Questioned about reports of attempts by the Ministry of Defence 
(MoD) to save money in different areas, Hoon said that his department 
was "not looking for cuts." 
"Large spending departments like the MoD have to ensure that as we 
look towards the end of the financial year," he said. This was to 
ensure "that we do not overshoot our budget so there are some 
sensible plans underway," he told BBC radio. 
Estimates are that the government is seeking an extra Pnds 3 
billion (Dlrs 4.8 bn) on top of the Pnds 3 bn already set aside by 
Chancellor of the Exchequer to pay for the Iraq war and cost of 
military occupation for three years. 
Rumours are that not only the MoD but other ministries are being 
asked to scrutinise all spending, regardless how small, to help to 
pay for the extra money needed. 
The situation is reported to be particularly severe because 
government borrowing has already exceeded the current budget for the 
fiscal year ending March 2004. 
In his interview, the Defence Secretary also denied that he was 
depressed by ongoing attacks in Iraq, but acknowledged that the 
security situation in and around Baghdad remained a cause for 
concern. 
HC/212 
End