§ Q3. Mr. Lubbockasked the Prime Minister if, in order to ensure co-ordination of economic policies, he will instruct Ministers responsible for the nationalised industries not to set profitability targets which imply increases of more than 3½ per cent. per annum in their charges.
§ The Prime MinisterNo, Sir. The financial objectives agreed with these industries are intended to secure a reasonable return on the capital invested in them. It is for the boards concerned to decide how best to attain the objectives, bearing in mind the importance of increasing productivity and keeping costs down.
§ Mr. LubbockDoes not the Prime Minister realise that it is almost impossible to get a national incomes policy which will be accepted by the public as a whole if charges for electricity and gas and fares of public transport undertakings are to increase by amounts greater than the permitted increases in income? Does he not think this is a very bad example to set to private industries? Does he appreciate that many of the increases proposed by the nationalised industries bear particularly hard on those living on small fixed incomes?
§ The Prime MinisterI have already said that I am sure that the boards of the nationalised industries do their best to keep their charges down but, like any other industry, they are faced with increased costs.