§ Sir T. Beamishasked the Minister of Aviation what would have been the total cost of ordering 50 TSR2s on the date when the project was cancelled; how this compares with the total cost of ordering 50 F111 As; and, in deciding to order the United States aircraft, what account he took of the £165 million cancellation costs of the TSR2 and any further costs that are likely to arise.
§ Mr. MulleyThe total cost of ordering 50 TSR2s, on April 1965 estimates, would have been upwards of £475 million of which about £125 million had been spent at the time of cancellation. 50 F111s, at a price of £2½ million each, will cost £125 million, with an additional charge of about £25 million for interest. In reaching their decisions to cancel the TSR2 and to buy the F111, the Government took full account of all relevant factors, including expenditure and liabilities on the TSR2 and differences in support and running costs. The overall comparison, on a ten year basis, shows that 50 TSR2s would have cost about £300 million more than 50 F111s.