HC Deb 24 July 1987 vol 120 c602W
Mr. Forth

asked the Secretary of State for Defence if he will make a statement on the report by the review board on its fifth general review of the profit formula for Government non-competitive contracts.

Mr. Younger

The Government have accepted the overall target rate of return on capital employed recommended by the review board in its report. This rate will be effective from 1 July this year. There are some other points in the report which officials will be pursuing with the CBI, in the context of implementing the recommendations, as part of the continuing drive to secure value for money and to promote full efficiency in the performance of defence work. Copies of the report have been placed in the Library.