British Overseas Airways Corporation (Financial Target)

HC Deb 19 July 1967 vol 750 c2124

23. Mr. McMaster

asked the President of the Board of Trade what financial target he is proposing to set for the British Overseas Airways Corporation.

Mr. Jay

After consultation with B.O.A.C. and with the approval of the Treasury, the Board of Trade are setting B.O.A.C. a financial objective of an average rate of return of 12½ per cent. on net assets over the four-year period, ending 31st March, 1970.

Mr. McMaster

Is the right hon. Gentleman aware that this target of 12½ per cent. may not be adequate in view of the high rate of interest which equities attract today?

Mr. Jay

On a balance of all the considerations, both past and prospective, I have concluded, with the agreement of the Treasury, that this is a reasonable figure.