§ Mr. Fryasked the Secretary of State for Transport whether, in view of the fact that the White Paper on nationalised industries has abandoned the use of a 10 per cent. real test discount rate, and has introduced the use of a required rate of return of 5 per cent. for investment appraisal, he will apply the required rate of return concept to road schemes appraisal; and if he will make a statement.
§ Mr. William RodgersI refer the hon. Member to the Written Answer given by my right hon. Friend, the Chief Secretary to the Treasury on 5th April 1978 to my hon. Friend the Member for Leeds, West (Mr. Dean).—[Vol. 947, c.147–8.] The new required rate of return system is not generally appropriate for non-trading public services. The appraisal rate to be used in future for road schemes will be 7 per cent.