§ Mr. Biffen
asked the Minister of Power (1) what rate of return, after depreciation and interest, has been earned on the capital employed in the National Coal Board's brick manufacturing activities during the past five years;
(2) if it is his policy that the National Coal Board should earn a minimum return of 14 per cent. after depreciation and interest on new capital invested in its brick manufacturing activities; and what rate of return has actually been earned on such investments during the past five years.
§ Mr. Freeson
As the hon. Member for Cirencester and Tewkesbury (Mr. Ridley) was informed on 5th April [Vol. 744, c.63], a return of 14 per cent. after depreciation and interest is the minimum criterion normally applied by the Board in considering new investment in this type of activity. The percentage rates of return on capital employed in the Board's brickworks can be ascertained from the reply given on 4th April to a further Question from the hon. Member for Cirencester and Tewkesbury. —[Vol. 744, c. 2.]
§ Mr. Ridley
asked the Minister of Power why the Brickworks Division of the National Coal Board paid £132,000 interest on £2,200,000 capital in 1964–65, but only £92,000 interest on £2,400,000 capital in 1965–66.
§ Mr. Freeson
I am informed by the Board that the interest charged to the Brickworks Division in 1965–66 reflected the reduction in the Board's total interest liability following capital reconstruction.