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Falkland Islands (Airport)

Volume 78: debated on Tuesday 30 April 1985

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asked the Secretary of State for the Environment what is (a) the original and (b) the current estimate for the cost of (i) the runway at Mount Pleasant airport, (ii) the army facilities at Mount Pleasant airport and (iii) other costs of the airfield excluding the runway.

The original cost of the airport works announced in June 1983 was £215 million. The current estimate is £276 million. The increase mainly arises from the provision of additional joint service facilities in the interests of overall economy, and from price changes due to inflation.

The current estimate for the army works remains at £119 million. This figure reflects savings achieved by reducing the accommodation requirements, offset by price changes due to inflation.

It is not the practice to disclose rates for particular components of the contracts.

asked the Secretary of State for the Environment which items in the original estimate for the cost of the Mount Pleasant airport were priced in non-sterling currencies; and what revision in the cost of the airport has occurred due to falls in the value of the pound sterling.

None. The only element in the contracts directly sensitive to exchange rate fluctuations is the cost of fuel oil for ships which amounts in total to some £9 million. There have been no increases in the total estimated costs of the airport directly attributable to falls in the value of the pound sterling.