HC Deb 16 December 1977 vol 941 cc530-1W
Mr. Michael Marshall

asked the Secretary of State for Energy what were the financial targets set for the British Gas Corporation in terms of net assets over the last 10 years; and how well the corporation has done in meeting those targets after interest payments, depreciation and tax have been allowed for.

Dr. J. Dickson Mabon

The financial objective set for the gas industry in the years 1967–68 and 1968–69 was a gross return—before interest and depreciation—of 102 per cent. on average net assets. For the years 1969–70 to 1973–74 the objective was a net return—before interest but after depreciation—of 7 per cent. on average net assets. The results achieved were as follows:

Per cent.
1967–68 7.7
1968–69 10.9
1969–70 6.5
1970–71* 6.2
1971–72* 7.4
1972–73* 7.4
1973–74* 5.6
* The figures do not include any element for compensation for price restraint paid in respect of the period 1970 to 1974.

The Government have set no financial objective for the gas industry for any year since 1973–74 but the British Gas Corporation is required to observe the financial duties laid down in Section 14 of the Gas Act 1972.