§ Mr. Wrigglesworthasked the Secretary of State for Industry whether he will make a statement about the financial objective for the national Giro.
§ Mr. VarleyI have agreed with the Post Office Board a financial objective for the national Giro of a return of 12½ per cent. on public dividend capital plus retained profits over the period 1st April 1978 to 31st March 1979.
This is an interim measure, extending the target announced in January 1976 and which expired on 31st March 1978. During the next few months the form of the target will be reviewed in the light of the White Paper on the nationalised industries (Cmnd. 7131), the expansion of the banking facilities offered by the national Giro, and the introduction this year of prudential supervision of Giro on the lines of that exercised by the authorities in the banking sector generally. The review will be completed in 154W time for the setting of a new target for a longer period from the year 1979–80.
A financial target was announced for the telecommunications business of the Post Office in December 1976 and for the postal business in March of this year.