HC Deb 25 April 1967 vol 745 cc264-5W
88. Mr. Michael Shaw

asked the Minister of Power what rate of return he expects from new capital investment projects by each of the nationalised fuel industries, stating separately the expected rate for diversification projects and for other projects.

Mr. Marsh

The Government regards 8 per cent. before allowing for risk as a suitable minimum rate of discount for use by the nationalised industries. This basic minimum rate applies to all types of investment though different allowances for risk would apply to different types of project, including for instance new ventures and diversification projects. It is for each Board to interpret this general criterion in the light of its own circumstances.

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