§ Mr. Meacherasked the Secretary of State for Industry what has been the real rate of return, with capital or stocks valued at replacement cost, in United Kingdom manufacturing for each year since 1945; and what comparable figures are available for West Germany, France, 301W the United States of America, Japan and Sweden.
§ Mr. David MitchellEstimates for the rate of return on capital employed for private manufacturing companies on a replacement cost basis after deducting stock appreciation are available only from 1960 and were last published in an article inTrade and Industry, 22 September 1978. Revised figures for recent years and a provisional estimate for 1978 are given below. The figures are based on national accounts data, and express profits less capital consumption at replacement cost less stock appreciation as a percentage of the net stock of fixed assets at replacement cost plus book value of stocks—see Trade and Industry article. International comparisons are very difficult to make because of severe conceptual and measurement problems, but a special study commissioned by the OECD which gives estimates for several countries is expected to be published early next month.
Rates of return (pre-tax) in private manufacturing companies in the United Kingdom per cent. 1973 5.6 1974 1.4 1975 1.7 1976 2.1 1977 3.5 1978 (provisional) 3.5