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Ministry of Defence

Answer

Laura Moffatt: To ask the Secretary of State for Defence what is the latest estimate of the cost of the Trident acquisition programme; and if he will make a statement. [121749] Mr. Hoon: The current estimate of the total acquisition cost of the Trident programme, with payments already made expressed at the prices and exchange rates actually incurred and future spend at the current financial year exchange rate (the hybrid estimate), is now £9,745 million. Leaving aside the effects of price inflation (+£12 million), there has been a real cost reduction since last year of £23 million. Expenditure on the Trident acquisition programme to 30 September 1999 represented some 96 per cent. of this estimate. If all expenditure, past and projected, is brought up to the current year's economic conditions (the non-hybrid estimate) the estimate is £13,170 million. Estimate table £ million _________________________________________________________________________________________________. US UK Total Hybrid Previous estimate (April 1999) at 2,873 6,883 9,756 1998-99 economic conditions (£1=$1.6269) Real Changes -16 -7 -23 Price Inflation on unspent +2 +10 +12 balance Exchange Rate Variation 0 n/a 0 Revised Estimate at 1999-2000 2,859 6,886 9,745 economic conditions (£1=$1.6269) Non-hybrid Previous estimate (April 1999) at 3,448 9,423 12,870 1998-99 economic conditions (£1=$1.6269) Real Changes -16 -7 -23 Price Inflation on unspent +64 +258 +323 balance Exchange Rate Variation 0 n/a 0 Revised Estimate at 1999-2000 3,496 9,674 13,170 economic conditions (£1=$1.6269) _________________________________________________________________________________________________. Note: Figures rounded to nearest £ million hence any apparent imbalances.

Secondary information

Type

Written question

Reference

121749; 349 c390-2W;349 c390-1W

Session

1999-00

Subjects

Costs Trident

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk