HC Deb 21 February 1968 vol 759 cc423-4
20. Mr. Clark Hutchison

asked the Minister of Transport if, in view of the need for public economy, she will now cancel the Channel Tunnel project.

Mr. John Morris

No, Sir.

Mr. Clark Hutchison

Does not the Minister realise that this whole concept is out of date? Would it not be much more effective, from the point of view of exports and efficiency, to concentrate on aircraft and hovercraft? When will the Government stop wasting public money and time on these futile projects?

Mr. Morris

Traffic with the Continent, on the best estimates, is expected to grow considerably over the next 30 years—this is generally accepted—and the increased capacity to cater for it must be provided somehow. Economic studies which have taken place show that the tunnel is economically preferable to the alternatives.

Mr. Deedes

If the hon. Gentleman is not going to cancel the project, can he give definite news fairly quickly to those who tremble on the brink of it?

Mr. Morris

The final financial proposals have recently been received from the three banking consortia. They are now being studied by my right hon. Friend and her counterpart in France. Obviously the decision must be made jointly with her French colleagues, and they must also agree on timing.

Mr. Thin

Can we be told about the progress which has been made in the formulation of financial proposals for the construction of the tunnel?

Mr. Morris

As I have just told the House, the financial proposals have been received and they are now being studied. My right hon. Friend hopes that a group to form the construction company will be selected in the near future.

Mr. Lubbock

Without agreeing with the hon. Gentleman the Member for Edinburgh, South (Mr. Clark Hutchison), may I ask whether it would be advisable to wait until at least the end of this year when we shall have more experience of a much bigger hovercraft, the S.R.N.4, on cross-Channel routes?

Mr. Morris

The House will be aware that the hovercraft is an important experiment; but, after all, it is an experiment at this stage. There are substantial indications that there will be a considerable growth of traffic in the years ahead. and this must be catered for on a substantial scale.