Contracts (Profit Margin)

HC Deb 13 April 1961 vol 638 c48W

Mr. Mason

asked the Postmaster-General what profit margin is allowed at the present time on Post Office contracts.

Mr. Bevins

Generally speaking, the Post Office follows the standard Government practice in regard to costed contracts of aiming to allow a return on capital employed of about 7½ per cent., subject to some addition if justified by the circumstances.