§ Lord Melchettasked Her Majesty's Government:
What is the rate of return that land drainage schemes must provide if they are to receive agricultural grant aid, and over what period of time are the costs and benefits of such schemes assessed.
The Minister of State, Ministry of Agriculture, Fisheries and Food (Earl Ferrers)The test discount rate used for calculating benefits in arterial drainage schemes is 5 per cent. Costs and benefits are assessed over the estimated life of the drainage works. In practice, this does not normally exceed 50 years.