HC Deb 08 July 1969 vol 786 c1139
8. Mr. Ridley

asked the Chancellor of the Exchequer if he will take steps to raise the test rate of discount for appraising investment in nationalised industries.

Mr. Diamond

A review of the rate is now in progress; I must ask the Hon. Member to await its outcome.

Mr. Ridley

The 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. Diamond

I agree that this matter has to be dealt with expeditiously, and it is so being dealt with.