Below is the text of Mr Major's written Parliamentary Answer on Capital Charges on 25th April 1989.
Mr. Ralph Howell To ask the Chancellor of the Exchequer at what level the interest elements of capital charges are set for public sector capital assets; how this figure is arrived at; and if he will make a statement.
Mr. Major [holding answer 24 April 1989]: I assume my hon. Friend has in mind the returns the Government expect the public sector to earn on capital assets. I refer him to my statement on 5 April, at column 187.
Fees and charges for non-
Trading bodies such as nationalised industries are required to earn a real rate of
return of 8 per cent. on their new investment programmes as a whole. This is derived
from the average pre-