§ The Secretary of State for Defence (Mr. Geoffrey 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 £9,803 million. Leaving aside the effects of price inflation and exchange rate variation (+£1 million), there has been a real cost increase of £2 million. Expenditure on the Trident acquisition programme to 30 September 2002 represented over 99 per cent. of the total estimate. If all expenditure, past and projected, is brought up to this current year's economic conditions (the non-hybrid estimate) the estimate is £14,913 million.
The programme continues to show an overall reduction in real terms on its original 1982 estimate. This reduction, including the savings resulting from the decision to process missiles at the United States facility at Kings Bay, Georgia, now stands at over £3.6 billion at current prices.
The proportion of the estimate for work undertaken in the United Kingdom continues to be around 70 per cent.
Our four in-service Vanguard Class submarines are successfully maintaining continuous at-sea deterrence, with HMS Vanguard now undergoing a planned major overhaul.
Estimate Table £million US UK TOTAL Hybrid Previous estimate (2002) at 2001–02 economic conditions (£1:$1.46) 2,884 6,916 9,800 Real changes 0 +2 +2 Price inflation on unspent balance 0 0 0 Exchange rate variation on unspent balance +1 +1 Revised estimate at 2002–03 economic conditions (£1:$1.39) 2,885 6,918 9,803 Non-hybrid, Previous estimate (2002) at 2001–02 economic conditions 4,059 10,318 14,377 Real changes 0 +2 +2 Price inflation +69 +258 +327 Exchange rate variation +208 +208 Revised estimate at 2000–01 economic conditions (£1:$1.39) 4,336 10,578 14,913
Figures rounded to nearest £ million hence any apparent imbalances.