§ Matthew TaylorTo ask the Chancellor of the Exchequer if capital assets where the ownership at the end of the contract reverts to the public sector are taken into account when calculating public sector(a) net investment and (b) net worth: and if he will make a statement. [16078]
§ Mr. Andrew SmithThe treatment of this type of contract will depend on how it is classified by the Department's accountants and the National Audit Office. If it is classified as a finance lease, it is included in net investment and net worth. If it is classified as an operating lease, it will not be. The decision will depend on whether it is the private or public sector which bears most of the economic risks and rewards associated with the asset.