§ Mr. Ronald Atkinsasked the Secretary of State for Industry whether he will make a statement about the financial target for the Post Office's telecommunications business.
§ Mr. KaufmanThe new financial target for the telecommunications business, agreed with the Post Office, is a real rate of return of 5 per cent. for each of the three years from 1979–80 to 1981–82. As with the previous target, "real return" is defined as profit before interest payable but after charging historic and supplementary depreciation as a percentage of average net assets revalued to replacement cost. This target is set in accordance with the principles laid down in the White Paper on the Nationalised Industries (Cmnd. 7131), including the need to earn the required rate of 5 per cent. on new investment. The Government also attach importance to the previously announced performance aim by which the telecommunications business is to reduce real unit costs by 5 per cent. per annum over the five years to 1982–83.