Appendices to chapter 5: L Defence requirements

Summary

This appendix sets out the stages of computing the direct-plus-indirect requirements of defence outlays reported in chapter 5. Each table is divided into two. Columns on the left show outlays as in the budget (‘gross of imports’); those on the right show outlays after deduction of net imports. Note that it is the total of net imports which is subtracted, not just imports of final products designated for defence use.

Table L.1 shows how defence outlays are allocated among the 27 processing sectors, gross and net of imports. Taking into account the net import of nonmilitary final and intermediate products in 1942–4, a row-by-row survey of outlays net of imports reveals many negative cells (column totals remain large and positive, of course); negative entries just mean that net imports were large enough to satisfy all direct defence needs and contribute to direct nondefence requirements as well. Table L.2 shows the associated direct-plus-indirect requirements for gross outputs. Table L.3 converts the latter into percentages of available gross output, including output available from de-stocking in 1942, or less output required for stock recovery in 1943–4.

Table L.4 converts gross outputs into value added for defence use by sector of origin, and table L.5 applies coefficients of value added per worker to find out the labour requirements of defence outlays in each sector and year.