§ 65. Mr. Rankinasked the Secretary of State for Defence if he will make a statement on the reason for the rise in costs in relation to the purchase of the F111K military aircraft from the United States of America.
§ Mr. HealeyAs I indicated in reply to earlier Questions today the unit cost of the F111K, in real terms, continues188W to be about £2½ million as we have hitherto assumed. The ceiling price of £2.1 million for the basic aircraft is, however, subject to adjustment in the light of increases in the cost of labour and materials since April, 1965, and to allow for this to date I am adding something over £100,000 per aircraft for purposes of costing forward defence plans at current price levels.
§ Mr. Dalyellasked the Secretary of State for Defence whether the £2.1 million price for the Fill includes an allowance for United States Monetary inflation.
§ Mr. HealeyNo. The £2.1 million ceiling price is subject to adjustment in the light of increases in labour and material costs since April, 1965.