§ Mr. Moateasked the Secretary of State for the Environment what is his estimate of the capital outturn cost of the Channel Tunnel, including allowance for inflation, interest during construction and financing charges, assuming inflation at the rate that occurred in 1973 and interest rates at their present level, and allowing for recent changes in exchange rates.
§ Mr. MulleyI do not accept that present economic conditions will last until 1980, and our reassessment of the project will use realistic forecasts for average rates of inflation and interest. However, should the hon. Member's pessimistic assumptions prove justified, the outturn cost of the project would be of the order of £1,000 million as against the May 1973 estimate of £846.6 million. The real resource cost of the project is, of course, unaffected by general inflation.
§ Mr. Aitkenasked the Secretary of State for the Environment if, in his reassessment of the Channel Tunnel, he will take into account its possible adverse effects on the harbour and hoverport of Ramsgate.
§ Mr. MulleyI will write to the hon. Member.