§ 6. Mr. Grimondasked the Chancellor of the Exchequer what are the economic considerations which lie behind the new profit targets laid down for the nationalised industries by the Treasury; and if he will make a statement.
§ Mr. MaudlingI would refer the right hon. Gentleman to the White Paper on the Financial and Economic Obligations of the Nationalised Industries of April, 1961 (Cmnd. 1337), especially paragraphs 15–16 and 19–23, where these considerations are fully set out. Basically the policy is designed to ensure that nationalised industries should earn a return on the capital invested in them 955 which fully covers the cost of the services they provide and makes an adequate contribution towards the cost of their capital development.
§ Mr. GrimondIn so far as these figures are an indication of the expansion of certain extremely important industries, may we take it from the right hon. Gentleman that N.E.D.C. was consulted before the latest figures were laid down? Are the latest figures for the electricity industry sufficient in view of the expected and hoped for growth of 4 per cent, in the gross national product?
§ Mr. MaudlingThe actual figures for individual industries would be put to the Ministers concerned. Broadly speaking, these figures are worked out in consultation between the Government and the nationalised industries. I do not think that N.E.D.C. would be concerned in the individual discussions, but clearly the principles involved are matters we have discussed on the Council.