§ Mr. Jim Spicerasked the Chancellor of the Exchequer what has been the recent trend in company profitability.
§ Mr. Peter ReesLatest estimates show that the real rate of return to non-North sea industrial and commercial companies has risen from 3.4 per cent. in 1981 to 5.8 per cent. in 1983 — the best return since the peak of the previous profitability cycle in 1978. For all industrial and commercial companies, including those operating in the North sea, the rate of return increased from 6.5 per cent. in 1981 to 10 per cent. in 1983. Profits have continued to increase in 1984, suggesting that the upward trend is continuing.