Enterprise Minister Jim Mather said Moray was a defence sector orientated community.
It added that while high levels of inflation in the defence sector could be partly blamed, the MoD had to take most of the responsibility for over-spending.
BBC: Ministry of Defence must stop 'living beyond its means'
"What we can try and do as much as possible is cut the defence spending, bring the private sector in as much as possible into public works projects so that they are self-financed, do away with unnecessary spending, and of course speed up privatisations, " he said.
It focused firstly on defence budgets and then on wider public sector spending.
But Sheffield Council says it will work with the Environment Agency and the private sector to fund further flood defence work as far as Meadowhall.
Defence sales have been poor, the retail sector has been absent, and telecoms have left the field to the competition.
Ministry of Defence (MoD) staff are among public sector workers in Shropshire to have taken part in a UK-wide strike over pension changes.
BBC: Public sector strikes: MoD picket outside Donnington base
This appointment suggests that Mr Livingstone's defence of public ownership will not extend to a defence of the working practices of public-sector unions.
Mr Loppion insists that defence contractors cannot wait for governments to reshape their sector.
Defence stocks also fell after a broker downgraded several of the sector's key companies.
BBC, goes another defence, provides more diversity and higher quality than the commercial sector.
Mr Blair comes close to conceding that he wasted his early years in power, imagining the public sector could be reformed from the centre: he cites inexperience in his defence (astonishingly, being prime minister was his first and only job in government).
And former Labour defence secretary Lord Hutton - the man the government appointed to oversee a review of public sector pensions - said linking the military pension to the consumer price index, rather than the retail price index, would mean war widows and the injured would get smaller payments in future.
In a fine pamphlet published on September 15th, he specified assorted defence projects that might be cut, and was frank about the need to reform public-sector pay and pensions.
Instead, the defence companies themselves are moving into the commercial field, using the expertise they have developed in the military sector.
ECONOMIST: America's defence companies are turning dual-purpose
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