§ 62. Mr. Rankinasked the Secretary of State for Trade and Industry why the estimated cost of developing and producing the Rolls-Royce RB 211 engine has now exceeded the original estimates.
§ Mr. CorfieldSince my statement to the House on 10th May 1971, a full re-estimate has shown the need to include development costs for the first two years after entry into service and a higher figure for the loss on production, totalling together about £20 million, as well as a £20 million contingency. The United States dollar devaluation will also reduce sterling receipts by £20–£25 million in the engines for which a price formula in dollars was fixed last year.