§ 16. Mr. Adleyasked the Chancellor of the Exchequer if, for fiscal policy purposes, he regards all the nationalised industries as identical.
§ Mr. Peter ReesIn general, for fiscal policy purposes, no distinctions are drawn between the nationalised industries.
§ Mr. AdleyDoes the Treasury recognise the essential difference in the deserving qualification for public funds between manufacturing and extractive industries such as steel and coal, and vehicle manufacture, in which competitive factors apply? Is it aware of the need for public funds to sustain part of the nation's transport infrastructure, where the factors are totally different?
§ Mr. ReesMy hon. Friend will recognise that, with regard to the first category of industries, a central theme of Government policy is to return as many of them as possible to the private sector. In relation to the second category referred to by my hon. Friend, a 5 per cent. rate of return is expected on most investments, with the possible exception of British Rail, where the need to continue the safe operation of loss-making lines must be taken into account, because of its public service obligation.