Member

I conclude by saying that, on these terms, the contract as currently presented appears to have an error in it. It is not quite what the Government expect. It is not quite what the Government think is happening or what they have justified. It is, in some ways, quite a reckless contract. It is quite outside what the private sector could do and quite beyond what the private sector could hedge. You can only get hedging against inflation up to 30 years: that is the only extent to which you could even purchase protection from this contract. It means that, economically, we are committing to something that is completely unusual in leases and other contracts around the world, and the Government will be left exposed. On that basis, I therefore suggest that it needs one more check in Parliament, just on the financial terms of the contract, to be sure that it is what the Government really expect and understand.