HC Deb 07 November 1974 vol 880 cc224-5W
Mr. Stanley

asked the Secretary of State for the Environment whether the Channel Tunnel Bill will be reintroduced in the current Session of Parliament.

Mr. Mulley

There is a motion before the House for this purpose.

Mr. Stanley

asked the Secretary of State for the Environment (1) what rates of construction cost inflation were assumed for each of the years 1973 to 1980 in estimating the outturn cost of the Channel Tunnel;

(2) what rates of interest were assumed to be payable on the loan finance for the Channel Tunnel in each of the years 1973 to 1980 in estimating the outturn cost of the project.

Mr. Mulley

The estimated outturn cost of £846 million published in the 1973 White Paper (Cmnd. 5430) assumed an annual rate of 7 per cent. inflation in tunnel construction costs and the following rates of interest:

%p.a.
Short-term bank loans 10.0
International loans 7.5
British loans 10.0
French loans 8.5

All these rates are subject to revision in the light of the current phase II studies.