§ Mr. CouchmanTo ask the President of the Board of Trade what financial and efficiency targets he has set for the Post Office in 1996. [36446]
§ Mr. OppenheimMy right hon. Friend the President of the Board of Trade, in agreement with the Treasury and in consultation with the Post Office, has set Royal Mail a target to achieve a 20 per cent. return on capital and employed in each of the three years 1996–97 to 1998–99, and has set Parcelforce a target to achieve a return on capital employed of 1.5 per cent. in 1996–97, 3.5 per cent. in 1997–98 and 5.5 per cent. in 1998–99. The profit used when calculating the returns will be struck after interest, excluding interest on past surpluses, but before tax. The capital employed on which returns will be calculated will be the greater of either opening fixed assets or the previous year's closing capital employed. In addition, Post Office Counters Ltd. has been set a target to achieve a 2.5 per cent. return on turnover in each of the three years 1996–97 to 1998–99. The profit used when calculating the return will also be struck after interest, excluding interest on past surpluses, but before tax.
9WMy right hon. Friend the President of the Board of Trade, in agreement with the Treasury and in consultation with the Post Office, has set a real unit cost target for Royal Mail of a cumulative reduction of 6.2 per cent. by 1998–99 over 1995–96.