HC Deb 06 July 1976 vol 914 cc509-10W
Mr. Neubert

asked the Secretary of State for Prices and Consumer Protection whether she will publish estimates, approximate if need be, of the effect on both pre-tax and post-tax rates of return on capital, defined as gross company trading profits after depreciation and stock appreciation, both at replacement cost, on net capital stock plus book value of stocks, of the increase in corporate profits which would follow from the modifications to the Price Code proposed in Command Paper No. 6540; and what she estimates the pre-tax and post tax rates of return (as defined above) will be in 1976 and 1977, assuming present tax structures and rates.

Mr. Maclennan

It is not the practice to publish forecasts of the rate of return on capital, since profits forecasts and estimates of capital values are subject to wide margins of error.

Mr. Neubert

asked the Secretary of State for Prices and Consumer Protection whether she will publish all the assumptions used to arrive at the forecast that the modifications to the Price Code proposed in Command Paper No. 6540 will raise the index of retail prices by 1 per cent. over 12 months; and whether she will attribute to each distinct measure of relief the approximate amount by which she anticipates that measure will raise corporate profits and the index of retail prices.

Mr. Maclennan

The critical assumption is that about the level of demand, on which certain Government forecasts were included in the Financial Statement and Budget report. For the remainder of this Question I would refer the hon. Member to the answer given today to my hon. Friend for Newham, North-West (Mr. Lewis).