Treasury and Work and Pensions

I am not familiar with the details of the argument about the contract for aircraft carriers, but we would want to ensure that it was dealt with properly and cost-effectively. They should be bought where the equipment is cheapest and fit for purpose, wherever that happens to be. There is no role for protectionism in this field, as the Government acknowledge. The hon. Gentleman also asks what we would cut. I have listed a series of areas of public spending that we would cut to finance our priorities. Let me raise a topical matter. Last week, the question of Olympic costs was raised. There was all-party consensus on supporting the project on the basis of a set of cost estimates that was produced with the Olympic bid. Those estimates are proving to be hopelessly and wildly unrealistic and the considerable limitations in the project management skills of Mr. Ken Livingstone have been exposed. When the Chancellor signed up to an open-ended public liability commitment, as is required by the International Olympic Committee, why did he not check the costs? What is his estimate of the public liability and, especially, of the element of that liability that will fall on the national Exchequer? The Government have big questions to answer about those elements of public spending.