§ Mr. Michael Marshallasked the Secretary of State for Energy, pursuant to his reply, Official Report, 16th December 1977, column 528, to the hon. Member for Arundel why the financial target rates of return on net assets for the Central Electricity Generating Board and area electricity boards excluded the costs of interest payments between the years 1967–68 and 1973–74; and why no financial objectives of any kind have been set since 1974.
487W
§ Mr. EadieThe financial targets for the CEGB and area electricity boards were expressed as a rate of return on net assets before interest since this measures how well the boards manage their resources, irrespective of how those resources are financed.
The policies of the last Government deflected the electricity industry from the course set by the targets established in the late 1960s and forced it into deficit. This Government, on taking office, made recovery from this position their first objective for the industry. Now that this has been substantially achieved, we shall be considering the establishment of a formal target.