HC Deb 22 November 1974 vol 881 cc529-30W
Mr. Gwynfor Evans

asked the Secretary of State for Defence what is the latest estimate of the development cost of the MRCA; what proportion of this expenditure will be incurred by the United Kingdom; what is the latest estimated cost per MRCA; how many the Government propose to purchase; and what is the estimate of the proportion of total development and production costs of the MRCA which will be incurred in Wales.

Mr. William Rodgers

The total cost of the common development work in the phase recently completed is estimated to have been £345 million, of which the United Kingdom's share is £166 million. Under the conventions normally adopted by Her Majesty's Government and our partners in the programme, the current estimate for the basic unit cost of the common version of MRCA which is at September 1973 prices is £3.4 million. Current planning requirements for the United Kingdom are for 385 aircraft. In common with those for all other projects, these are being examined in the current Defence Review. Firm orders will not need to be placed before December 1975.

Percentage of GNP at factor cost Per cent. Per capita expenditure £ Total expenditure £m.
NATO*
Belgium 3.0 53 511
Canada 2.4 44 980
Denmark 2.5 47 237
France 4.2 73 3,785
Federal Republic of Germany 3.9 81 4,865
(including Berlin) (4.7) (98) (5,872)
Greece 4.6 29 265
Italy 3.3 30 1,674
Luxembourg 1.0 18 6
Netherlands 3.7 59 793
Norway 3.8 62 245
Portugal 6.4 29 246
Turkey 4.8 9 363
United Kingdom 5.7 63 3,518
United States 6.6 152 32,000
Warsaw Pact†
Bulgaria 3.0 62 500
Czechoslovakia 5.0 73 1,100
East Germany 6.0 72 1,20[...]
Hungary 3.0 47 500
Poland 4.0 45 1,500
Rumania 2.0 35 700
USSR 8.0 131 32,000
*These figures are on the NATO definition.
† Estimates only. It is not possible to arrive at fully comparable figures.

Sub-contract work on the MRCA is spread over a very large number of firms in each of the three participating countries under contractual arrangements which are supervised by the international management agency (NAMMA) in Munich. Information about the precise location of sub-contract work, particularly at the lower levels, is not readily available and would take disproportionate effort to obtain.

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