§ Mr. Marten
asked the Minister of Technology if he will circulate in the OFFICIAL REPORT an estimated detailed breakdown of the rise in the costs of the Concorde from the original estimate to the latest, including the amount attributable to wage increases, devaluation, 215W increase in the price of materials, delays and any other significant factors on the British and French sides expressed in £ sterling and as a percentage of the total rise.
§ Mr. Benn
The present estimate of development costs of £730 million is equivalent to £480 million at November, 1962, prices. Of the difference of £250 million, £210 million is due to pay and price increases on both sides of the Channel and £40 million to the effects of devaluation on costs incurred outside the United Kingdom. The increase in real terms, at November, 1962, prices, over the November, 1962, estimate of £150–£170 million, is thus £310–£330 million. This increase is due partly to changes to the original design and partly to under-estimation of the time and effort required to complete the programme. The cost of delays to the programme cannot be stated separately since these delays are themselves the consequences of such design changes and under-estimation.