§ Mr. Freemanasked the Chancellor of the Exchequer what steps he proposes to take to reappraise the relative rates of return of all nationalised industries.
§ Mr. Peter ReesSuccessive Governments have required industries' investment programmes to earn a real rate of return of 5 percent. before tax. Individual financial targets spanning a fixed period are set for nearly all nationalised industries. They are usually expressed in terms of a current cost operating profit as a percentage of revalued assets and are based on discussion with the industries. They reflect a judgment about the application of the basic principles on investment and economic pricing to the particular trading environment of the industry concerned. Industries' rates of return are, therefore, already systematically reviewed from time to time and I see no need for further reappraisal.