§ 8. Mr. Ridleyasked the Chancellor of the Exchequer if he will take steps to raise the test rate of discount for appraising investment in nationalised industries.
§ Mr. DiamondA review of the rate is now in progress; I must ask the Hon. Member to await its outcome.
§ Mr. RidleyThe right hon. Gentleman is a little late. Has he not heard that the interest rates have gone up since the 8 per cent. discount rate was fixed, and that they are now nearly 50 per cent. above what they were at that time? Will he hurry up in order to avoid a wrong distribution of resources in companies in the private sector?
§ Mr. DiamondI agree that this matter has to be dealt with expeditiously, and it is so being dealt with.