§ 3. Mr. Martenasked the Minister of Aviation Supply if he will make a statement on further progress with the Concorde.
§ 4. Mr. Barnesasked the Minister of Aviation Supply if he will make a statement 194 on the progress of test flights of the Concorde.
§ Mr. CorfieldConcorde's flight tests are continuing to make satisfactory progress We shall review the project thoroughly, in consultation with the French Government, in the light of the results of the current series of tests and the commercial prospects of the aircraft.
The latest estimate of development cost is £825 million at June, 1970, prices. I shall circulate further details in the OFFICIAL REPORT.
§ Mr. MartenI congratulate my right hon. Friend on his appointment. When will these tests be concluded and what is the date on which he will be able to come to a commercial decision about the viability of Concorde? What has been the annual average expenditure on Concorde since its inception by Britain alone?
§ Mr. CorfieldWe hope that the tests will be completed by the middle of December. However, my hon. Friend will appreciate that they will not be evaluated by that date. It may be some time after that date before I am able to enter into the sort of evaluation he has in mind. The total cost to Her Majesty's Government to date—between November, 1962, and the end of September, 1970—has been £240 million.
§ Mr. BarnesIs it not the case that the noise which Concorde is now making, even at subsonic speeds, certainly in the experience of people living near Heathrow, which was visited by Concorde last month, is far in excess of what was expected of it? Can he give an assurance that before Concorde goes into service it will meet the standards currently being applied under the Noise Certification Scheme?
§ Mr. CorfieldPart of the extra cost which I mentioned is being devoted to that objective. The particular flight to which the hon. Gentleman referred was exceptional in that the engines used on that occasion were not the production engines. They were substantially more noisy that the production engines will be. He should also note that the aircraft landed under full load owing to its having come from Farnborough.
§ Mr. OnslowWhile we hope that Concorde will be successful in every way, may I ask my right hon. Friend to bear in mind that it is not the only aircraft on which the British aviation industry depends? Would he agree, for example, that it is vitally important that there should be an early and favourable decision in favour of the BAC 311 project?
§ Mr. CorfieldThat is another question. My hon. Friend will know that I have all these matters very much in mind.
§ Mr. SheldonWhen does the right hon. Gentleman expect to be in a position to go to the aircraft operators with a view to getting their options converted into firm orders? Can he give an undertaking that there will be no attempt to get mixed up with this issue the whole question of our application to enter the Common Market and that there will be no question of reaching a decision to go ahead with Concorde simply in order to please our French partners?
§ Mr. CorfieldI am sure that the hon. Gentleman appreciates that one cannot expect airlines to enter into firm commitments until the manufacturer is in a position to give firm undertakings as to the performance of the aircraft, and that cannot be done until after the tests. I envisage that that position will be reached probably by March or April of next year.
§ Sir G. NabarroWhat everybody wants to know is how much more money we are committed to in respect of Concorde, so that a reasonable appraisal may be
§ The latest basic estimate of £825 million is divided as follows as between actual past expenditure and estimated future expenditure:
| British Government | French Government | Both Governments | |
| £m. | £m. | £m. | |
| Actual costs from 29th November, 1962 to 30th September, 1970 at the prices and exchange rates prevailing when the costs were incurred | 240 | 220 | 460 |
| Estimates costs from 30th September, 1970 to completion of the programme at June, 1970 prices and an exchange rate of £1=13.33F | 165 | 200 | 365 |
| Totals | 405 | 420 | 825 |
§ The difference between the latest estimate of £825 million at June, 1970 prices and the former estimate of £730 million at October 1969 prices is made up as follows:
| £m. | ||
| Former estimate at October, 1969 prices | … | 730 |
| Improvements to the propulsion system | … | 35 |
| Other adjustments to the programme | … | 20 |
| Pay and price increases since October, 1969 | … | 40 |
| Present estimate | … | 825 |
§ made of the prospects. Is it not a fact that £240 million is the figure spent up to September, 1970? Should not we be told at an early date—say, within 14 days—whether we are to be confronted with a bill for another £240 million in the next 12 months?
§ Mr. CorfieldAs I indicated in my initial Answer, the total estimate is now £825 million, an increase since the former estimate was given by the right hon. Member for Bristol, South-East (Mr. Benn) of £95 million. Nearly half of this has been due to inflation. The bulk of the remainder has been due to modifications to the engine.
§ Mr. RankinIs the right hon. Gentleman aware that I heard the Concorde in the Scottish tests and that there could be little provocation created by the noise, which seemed to be acceptable to all those who live along the flight path? I think that it could also be said that what we have invested in the Concorde has been well spent and that what we have still to invest will receive a good reward in due course.
§ Mr. CorfieldI was not aware that the hon. Gentleman had heard the aircraft, but I am glad to hear his reactions.
§ Mr. HuckfieldWhat is the latest number of options on the Concorde taken by airlines?
§ Mr. CorfieldThe options have not increased. I recollect that they were 70.
§ Following are the further details: