§ Mr. Nicholas BennettTo ask the Secretary of State for Transport if he will make a statement on the test discount rate for road schemes.
§ Mr. Peter BottomleyIn reply to a question on 5 April from the hon. Member for Daventry (Mr. Boswell), my right hon. Friend the Chancellor of the Exchequer announced a new required rate of return for nationalised industries of 8 per cent. As a result, British Rail intends to adopt a test discount rate of 8 per cent. for investment projects. In order to ensure that road and rail projects continue to be appraised on a comparable basis, the test discount rate for road projects will be increased from 7 to 8 per cent.