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British Aerospace

Volume 949: debated on Friday 12 May 1978

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asked the Secretary of State for Industry whether he has yet made a determination of the financial duties of British Aerospace.

In accordance with Section 10 of the Aircraft and Shipbuilding Industries Act 1977, my right hon Friend has made, with the approval of the Treasury and after consulting British Aerospace, the first determination of financial duties for British Aerospace. My right hon. Friend has notified British Aerospace that it has a duty in its current accounting year, which ends on 31st December 1978, to seek to achieve a return on average net assets of 20 per cent., equivalent to a profit before interest and tax of £62 million. A copy of this determination has been placed before each House of Parliament. Financial duties covering a longer period will be determined when the corporation's plans are more fully developed.