HC Deb 24 October 1967 vol 751 cc418-9W
46. Mr. Brooks

asked the Minister of Technology what is the latest estimate of the research and development, and production costs of the Concord; and whether he will make a statement on the method of production financing to be adopted.

48. Mr. A. Royle

asked the Minister of Technology when a decision on the method of financing production of the Concord will be taken and if he will give an assurance that the Concord will not be cancelled by Her Majesty's Government if the test flying programme of the prototypes is successful.

Mr. Stonehouse

The latest estimate of the expenditure agreed by the two Governments that they will incur in respect of work done by the Contractors remains at £500 million at 1966 prices. There are many unavoidable uncertainties in an advanced project of this kind and jointly with our French partners we keep progress and costs under continuous review.

The sums required to finance production will depend on how many aircraft are eventually produced but a broad estimate is that at peak, in the early 1970s, about £100 million might be needed to cover expenditure in advance of receipts. Discussions on the methods of financing production are continuing with the manufacturers and with our French partners; meanwhile, early production work is going ahead in accordance with the programme.

Mr. Whitaker

asked the Minister of Technology whether he is satisfied that the Concord project is certain to make a commercial profit; and if he will make a statement.

Mr. Stonehouse

Concord is being developed as an aircraft the airlines will want to buy to operate at a commercial profit. The return on Government expenditure on Concord will depend upon the success in selling the aircraft.

Mr. William Hamilton

asked the Minister of Technology what is the latest estimate of the development costs of Concord; and what consideration is now being given to abandoning the project.

Mr. Stonehouse

The latest estimate agreed between the two Governments of the expenditure that will be incurred in respect of work done by the contractors remains at £500 million at 1966 prices. Jointly with our French partners we keep progress and costs under continuing review. There are many unavoidable uncertainties in an advanced project of this kind. But far from abandoning the project everything possible is being done to make it a success.