§ Mr. Nicholls
To ask the Secretary of State for Transport what is the required rate of return from British Rail for(a) existing Trainload Freight assets, (b) existing Railfreight Distribution assets, (c) new investment by Trainload Freight and (d) new investment by Railfreight Distribution; and if he will make a statement.
§ Mr. Freeman
British Rails current financial objectives were set by the then Secretary of State for Transport in 1989. The objectives set an overall target for Railfreight of earning a profit of £50 million in 1992–93. This was broadly equivalent to a 4.5 per cent. return on the then estimated net asset values. The objectives also said that a return of 8 per cent. should be the basis for decisions on new investment.