§ Mr. Rathboneasked the Secretary of State for Transport if he will publish starting dates for the operation of each of those motorway concessions listed in his previous answer to the Question from the hon. Member for Lewes, No. 102 of 5th May 1977.
§ Mr. HoramThe information requested is as follows:
the total capital expenditure on a motorway is used as a basis for this consideration.
§ Mr. HoramIt is considered that a reasonable rate of return would be in 313W line with the public sector test discount rate, currently 10 per cent., and, accordingly, forecasts of future rent at constant prices offered under tenders are expected at least to cover the Department's capital expenditure when discounted at that rate over the term of the lease. The capital expenditure taken into account is the cost of the site and of the necessary engineering works on it. In aggregate this amounts to about 1.25 per cent. of the total expenditure on the construction of motorways.