HC Deb 13 December 1967 vol 756 cc395-7
2. Mr. G. Campbell

asked the Secretary of State for Defence what is his estimate of the additional cost of the purchase of F111 aircraft resulting from devaluation and connected measures.

22. Mr. Raphael Tuck

asked the Secretary of State for Defence what is the amount which Great Britain will now owe to the United States of America for the purchase of the F111; and by how much it exceeds the figure which obtained before devaluation.

38. Mr. Marten

asked the Secretary of State for Defence what is now the increase in the total cost of the F111 order with spares; and if he will make a statement.

54. Sir C. Osborne

asked the Secretary of State for Defence how much more the United States F111 aircraft will cost to public funds as a result of the devaluation of sterling.

Mr. Mason

The extra cost to the defence budget of the whole F111 programme as a result of devaluation will average about £5 million a year.

Mr. Campbell

In view of recent speculation, will the hon. Gentleman tell the House categorically whether or not the Government are proposing to cancel this aircraft?

Mr. Mason

No, Sir.

Mr. Tuck

In view of the escalating cost, which is out of all proportion and which we cannot afford, and in view of the fact that we were told when the TSR2 was cancelled that such an aircraft was not necessary, would my hon. Friend reconsider this unwarranted expenditure?

Mr. Mason

No, Sir. As my hon. Friend knows, we have already got a very good offset agreement for this aircraft. We are enabled to get 325 million dollars worth of equipment sold to the United States and we are doing extremely well on this. We have already sold 178 million dollars worth.

Mr. Marten

Regarding the answer which the hon. Gentleman gave to the supplementary asked by my hon. Friend the Member for Moray and Nairn (Mr. G. Campbell), could he now explain why it was necessary for the Prime Minister to summon on Thursday night to No. 10 Downing Street a group of journalists commonly known as the "white Commonwealth" to explain to them why he wanted to get off the hook on the F111?

Mr. Mason

No, Sir. I am not aware that such a meeting took place.

Mr. Barnett

What would be the cost of compensation if we were to cancel this order for no other reason than that we do not need it?

Mr. Mason

I do not think that that exercise is necessary. I could not make a guess and it would be difficult to unscramble all the contracts that have been made, the production lines that have been assembled and the fact that material is going to the United States because of the agreement that we have.

Mr. Powell

By how many years does the annual increase of £5 million have to be multiplied?

Mr. Mason

Ten.