§ Mr. MorganTo ask the Chancellor of the Exchequer what assessment he has made of the effects of(a) annual and (b) six-monthly changes in mortgage rates set by building societies on fluctuation in the monthly figures for the retail prices index.
Companies Receiving BES Investments Industry 1987–88 1988–89 Number of companies Amount of investment £ million Number of companies Amount of investment £ million Agriculture, Horticulture, Forestry 21 9 13 1 Fishing 20 6 11 1 Manufacture of Metals, Minerals and Chemicals 32 3 21 1 Mechanical Engineering 26 2 7 1 Electrical and Electronic Engineering 51 5 26 1 Manufacture of Transport Equipment 20 7 11 4 Instrument Engineering 20 2 7 1 Food and Drink Industry 30 2 12 — Textile, Clothing and Footwear Industry 24 1 7 — Manufacture of Paper and Paper Products 40 3 33 3 Other Manufacturing Industries 49 4 40 3 Construction and Real Estate 50 34 30 3 Wholesale Distribution 41 7 42 4 Retail Distribution 88 27 51 3 Distribution and Repair of Motor Vehicles 24 3 11 1 Hotels and Catering 74 43 42 4 Transport and Storage Services 28 1 21 9 Business, Professional and Technical Services 69 6 64 4 Medical, Educational and Social Services 38 30 26 1 Recreational, Hairdressing and Personal Services 59 4 38 2 Private Rented Housing — — 1,948 365 Others 14 2 15 2 Total 818 200 2,476 416 The average size of investment per company is as follows:
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§ Mr. Maples[holding answer 5 March 1991]: The mortgage interest payments component of the RPI is calculated using the current rates of interest charged by building societies and banks in order to reflect the changes in liabilities as they accrue for typical mortgage payers. The RPI is an index of prices rather than payments and it is not appropriate to reflect the various arrangements where payments are fixed for set periods.