HC Deb 22 July 1968 vol 769 cc26-7
34. Mr. Brooks

asked the Minister of Technology how much had been paid to the contractors responsible for the TSR2 by 6th April, 1965; what calculation was at that time available regarding further payments, including cancellation charges; and what was, in the event, the actual total of these outstanding payments.

Mr. J. P. W. Mallalieu

At the time of cancellation, payments to TSR2 contractors amounted to £125 million. Further payments, including cancellation charges, were then estimated at £70 million. Since cancellation such further payments have amounted to £53½ million. The final total is expected to fall well within the original estimate.

Mr. Brooks

We are dealing with figures of rather large dimensions and there still appears to be a substantial discrepancy. In order to clear the air once and for all on this, will my hon. Friend consider publishing a full and accurate document indicating the reasons for the discrepancy?

Mr. Mallalieu

The discrepancy between the estimate and the actual payments so far made is due in part to the fact that some of the sub-contractors concerned have not yet put in their claims. Others have put in claims that were manifestly too high.

Mr. Onslow

When the hon. Gentleman tells us that £248 million has been spent on the TSR2 and we have no aircraft to show for it, will he add the cancellation costs of the F111?

Mr. Mallalieu

That would be an entirely different question, but I shall certainly look at the amount of money we should have had to spend if this cancellation had not taken place.

Forward to