§ The Minister of State for Defence Procurement (Lord Trefgarne)The revised estimate for Trident at average 1986–87 prices is £9,265 million. In line with established conventions adopted for the recosting of the defence programme, the estimate is based on the average exchange rate applicable in June 1986, namely £$1.50. The UK share of the revised estimate is 62 per cent—its highest recorded level. After allowing for the effects of inflation and exchange rate variations, this represents a real reduction in estimate over last year of some £546 million.
It is now assessed that on average the programme will provide some 7,500 direct and 6,000 indirect jobs over the procurement period, with the figures rising to 15,000 direct and 12,000 indirect in the peak years.
The Defence Select Committee of the other place previously asked that when announcing the annual revised estimate, we should report on the state of the project as a whole. I am pleased to report that the project remains on programme to enter service as planned in the mid-1990s. There has been no slippage in the in-service date since the decision to proceed with Trident II was announced in March 1982. We are, as last year, sending to the Chairmen of the Select Committee on Defence and of the Public Accounts Committee a more detailed report covering the points on which the Select Committee on Defence sought advice. I am also placing a copy of the report in the Library of the House.