§ Mr. RedmondTo ask the Secretary of State for Defence if he will make a statement on the terms of the lease agreement with the Italian authorities concerning Tornado F3 aircraft; and what non-financial facilities have been made available to the Italian authorities as part of this agreement. [13209]
§ Mr. ArbuthnotThe lease provides for 24 RAF Tornado F3 aircraft to be loaned to Italy for a period of 10 years for a fee of £100 million. The Italian Government are responsible for all support costs. The168W lease agreement includes an offset scheme under which Italian industry will be furnished opportunities to compete for defence work to the same value as the lease fee.