HC Deb 09 July 1981 vol 8 cc179-80W
Mr. Trippier

asked the Secretary of State for Industry what are the manufacturers' present total costs of, and the receipts from. the development, production and in-service support of the Concorde aircraft; what is the total net cost to public funds; and what is the net Government commitment to production and in-service support expenditure.

Mr. Michael Marshall

The manufacturers' total development costs in Britain and France to completion of the airframe development programme on 31 December 1978, and of the engine development programme on 31 December 1980, were £1,126 million. The expenditures were divided as follows:

(£ million)
British manufacturers
British Aerospace 312

Figures for 1980 Estimates for 1981
Expenditures Receipts Expenditures Receipts
British manufacturers (£ million)
British Aerospace 18 3 20 6
Rolls-Royce 15 19 20 7
Totals 33 22 40 13
French manufacturers (F million)
SNIAS 102 17 98 20
SNECMA 37 32 41 26
Totals 139 49 139 46

The total net cost to public funds of the foregoing United Kingdom manufacturers' expenditures net of receipts, of expenditures at Government research establishments—£76 million—and of all other expenditures and receipts accruing to the Department's Concorde Vote, to 31 December 1980 was £849 million at the prices arid exchange rates prevailing when the costs were incurred or the income received.

At 31 March 1981, the Government's total net commitment to Concorde production and in-service support expenditures stood at £303 million, and net expenditures at £262 million.

(£ million)
Rolls-Royce 262
Total British expenditure 574
French manufacturers (£ million equivalent)
SNIAS 373
SNECMA 179
Total French expenditure (6,500 million francs) 552
Total development costs 1,126

The manufacturers' total production costs to the end of 1979, when the production phase—including initial in-service support—is regarded as having been completed, and their receipts from the sale of aircraft, and from the sale or lease of engines and spares, also to the end of 1979, were as follows:

Expenditures Receipts
British manufacturers (£ million)
British Aerospace 267 84
Rolls-Royce 101 63
Totals 368 147
French manufacturers (F million)
SNIAS 2,550 1,023
SNECMA 836 529
Totals 3,386 1,552

All expenditures and receipts from 1 January 1980, other than the residual costs of engine development to completion of the programme on 31 December 1980, are regarded as arising from the support of Concorde aircraft and engines in airline service. The manufacturers' in-service support costs and receipts in 1980, and their estimated costs and receipts during 1981, are as follows:

Forward to