HC Deb 01 April 1996 vol 275 c38W
Mr. Dover

To ask the Secretary of State for Defence if he will make a statement on the report by the review board for Government contracts on its 1996 general review of the profit formula for non-competitive Government contracts. [24470]

Mr. Arbuthnot

The Government have accepted the overall target rate of return on capital employed as recommended by the review board in its report. The new rate will be 19.3 per cent. compared with the current rate of 18.5 per cent., both on the basis of historic costs. It will be effective from 1 April this year. The report has been printed and copies have been placed in the Library of the House.

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