§ Mr. Gryllsasked the Secretary of State for Industry why, in his Written Answer on Monday 3rd April, Official Report, he has imposed a rate of return on capital to be earned by British Leyland of 10 per cent. by 1981, when, in the scheme of arrangement concerning the British Leyland Motor Corporation Ltd., in paragraph 8(b), it was stated that the rate of return on capital was to be 19.6 per cent. in 1981–82; and if he will make a statement.
§ Mr. Les HuckfieldThe forecast rate of return of 19.6 per cent. contained in the explanatory statement on the scheme of arrangement—dated 18th June 1975—to which the hon. Member refers was an explicit quotation from the Ryder report. The immediately following section of the explanatory statement pointed out that the board of British Leyland did not feel able at that time to make any forecast as to profitability over the next few years and that, in the light of the Ryder report, it did not foresee any likelihood of dividends for some years to come. The board also advised all shareholders to take up the Government's offer for their shares.
The financial duty to obtain a return of 10 per cent. in 1981 on the capital employed in British Leyland has been imposed on the National Enterprise Board in the light of its report on the company's corporate plan for 1978–81, in which the NEB stated that a higher target would not be realistic.