§ Mr. Lubbockasked the Minister of Transport (1) if he will publish an estimate of the present cost of the Channel Tunnel in the form of Appendix X of proposals for a Fixed Channel Link, Command Paper No. 2137, the figures to include interest during construction; and if he will state the interest rate used for this purpose;
(2) if he will publish a revised version of Appendix XII, and of Appendix XI insofar as it relates to the Channel Tunnel, of Command Paper No. 2137, Proposals for a Fixed Channel Link, using a discount rate of 8 per cent., and taking into account the use of containers for freight traffic and the advent of hovercraft.
§ Mr. MarshI do not think publication in such detail would now be useful. Estimates, permitting comparison with those given in Command Paper 2137, were made in 1966 but they have not been brought up to date. In particular they are in terms of 1966 prices and take no 81W account of devaluation. A more up-to-date revision has not been made, because completely new estimates will be prepared during the detailed study period which is expected to begin as soon as the British and French Governments have entered into a preliminary agreement with a private financing group. The new studies will take account, among other factors, of developments in the use of containers and the implications of hovercraft.
For what they are worth, the results of the 1966 revision of the 1963 estimates were in summary as follows:
ESTIMATED COST OF TUNNEL 1963 Estimate (1962 Prices) £ million 1966 Estimate (1966 Prices) £ million Engineering Cost 143 155-170 Total Cost (including Interest Charges)* 167.5 187-204 * The rate assumed in the 1966 revision was 7.5 per cent, per annum.
COMPARISON OF DISCOUNTED COSTS OF TUNNEL AND OF ESTABLISHED MEANS OF TRANSPORT REQUIRED TO CARRY TRAFFIC WHICH WOULD BE DIVERTED TO THE TUNNEL AT " UPPER " TRAFFIC LEVEL 1963 Estimate (Discounted at 7 per cent, to 1969 values) £ million 1966 Estimate (Discounted at 8 per cent, to 1974 values)£million Tunnel Initial cost 165 186 Subsequent cost† 67 86 Total Cost 232 272 Established means of transport Total discounted cost 308 524 †Includes costs for carriage of traffic generated by Tunnel, as well as diverted traffic.