HC Deb 26 February 1985 vol 74 cc152-4W
27. Mr. Fatchett

asked the Secretary of State for Defence if he has made any further estimate of the likely increase in cost of the purchase of Trident as a result of the recent decline in value of the pound sterling.

Mr. Lee

As stated by my right hon. Friend the Secretary of State for Defence on 29 January, at columns 134–137, the current Trident estimate is £9,285 million at 1984–85 prices and at £1 = $1.38. $1.38 is the rate used by the Department for this year's recosting of the defence programme.

In view of the public interest in exchange rates, my right hon. Friend the Secretary of State for Defence has made available to the Select Committee on Defence and the Public Accounts Committee an indication of the effects of changes in the exchange rates on programme costs, so that those wishing to predict the effect of possible exchange rate changes over the procurement period are able to do so. The following table shows the broad exchange rate effect of a 1 per cent. change around the following alternative exchange rates:

$=£1 £ Million
1.0 57
1.1 47
1.2 39
1.3 34
1.4 29
1.5 25
1.6 22
1.7 20

The above figures are based on the assumption that the chosen rate of exchange will remain constant throughout the life of the project.

34. Mr. Ron Davies

asked the Secretary of State for Defence if he will provide a revised estimate of the cost of the proportion of the Trident project being constructed in the United States of America.

Mr. Lee

I refer to the answer given by my right hon. Friend the Secretary of State for Defence to the hon. Members for Edinburgh, East (Mr. Strang), for Cynon Valley (Mrs. Clwyd) and for Leeds, West (Mr. Meadowcroft) on 29 January, at columns 134–37.

The United States share of the programme is estimated to cost about $5.7 billion and represents, at the exchange rate of £1 = $1.38 used for recosting this year's defence programme, some 45 per cent. of the total estimated cost.

35. Mr. Campbell-Savours

asked the Secretary of State for Defence what meetings he has recently convened to discuss the Trident programme.

Mr. Lee

None. However, my right hon. Friend the Secretary of State for Defence is regularly kept in touch with progress on the programme.

41. Mr. Wareing

asked the Secretary of State for Defence whether he has any plans to place a ceiling on the cost of Trident.

Mr. Lee

Expenditure on the Trident project is subject to the normal constraints placed on the defence budget as a whole. The Government remain committed to Trident to replace Britain's strategic nuclear deterrent in the mid-1990s.

49. Mr. Tom Cox

asked the Secretary of State for Defence what is the present up-to-date cost to the United Kingdom of the Trident nuclear weapon.

Mr. Lee

I refer to the answer given by my right hon. Friend the Secretary of State for Defence to the hon. Members for Edinburgh, East (Mr. Strang), for Cynon Valley (Mrs. Clwyd) and for Leeds, West (Mr. Meadowcroft) on 29 January, at columns134–37. The estimated cost of Trident is £9,285 million at average 1984–85 prices and at an exchange rate of £1=$1.38.

61. Mr. Norman Atkinson

asked the Secretary of State for Defence in what way he anticipates the effectiveness of Trident will be curtailed by the development of Soviet ballistic missile defences in space.

Mr. Stanley

No developments in Soviet anti-ballistic missile defences are currently foreseen which are likely to negate the deterrent effect of the Trident force within the lifetime of the system.