§ 11. Mr. Ridsdaleasked the Chancellor of the Exchequer whether he is satisfied that an adequate return is being achieved 221 on the capital invested in the nationalised industries; and if he will make a statement.
§ Mr. CallaghanNationalised industries are expected to earn a reasonable rate of return on capital invested in them. I am satisfied that their financial objectives take this requirement into account.
§ Mr. RidsdaleDoes the Chancellor think it right that there has been a price rise of 150 per cent. on certain season tickets in the past ten years in spite of the investment of £1,200 million in British Railways in the same period?
§ Mr. CallaghanWhat has always to be remembered about the nationalised industries, especially the railways and coal, is that they are not capital intensive. Any general increase in wage rates must be reflected to a very much greater extent in the railways than in a great many other industries, and rises in fares are bound to follow rises in wages of this sort.
§ Mr. OgdenMy right hon. Friend mentioned coal. Will he compare the increased productivity of the coal industry with that of private enterprise?
§ Mr. CallaghanI am glad to say that the increase in productivity in the coal industry last year was over 6 per cent. and in 1962 it was over 8 per cent. These are very valuable assets.
§ Mr. HeathWill the Chancellor confirm that he will be adopting the same targets as the previous Government did as regards the nationalised industries, and that this will extend to B.O.A.C. also for the writing off of the deficit and for the contingency allowance which he has agreed to make?
§ Mr. CallaghanI answered a question in those terms about two months ago. That does not mean that I should not feel entirely free to review the basis of earnings in the industries, but the targets as targets are acceptable.
§ Mr. RidsdaleIn view of the unsatisfactory nature of the reply, I beg to give notice that I shall seek to raise the matter on the Adjournment.