§ Mr. Dubsasked the Chancellor of the Exchequer what assessments have been made of the relative economic effects of capital investment by nationalised industries compared with investment by private industry.
§ Mr. BrittanBetween 1970 and 1979 average pre-tax real rates of return on capital employed fell from plus 1 per cent. to minus 1 per cent. in the nationalised industries and from plus 9 per cent. to plus 6 per cent. in all industrial and commercial companies. The nationalised industries' returns were held down for much of this period by 485W successive Governments' policies of price restraint, not fully compensated by Exchequer grants, and in the case of some of the industries by crisis requiring substantial remedial measures. Looking forward, the intention is that capital investment in the nationalised industries should earn returns commensurate with those earned in the private sector.