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British Gas Corporation (Profitability)

Volume 990: debated on Thursday 7 August 1980

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asked the Secretary of State for Energy what was the return on turnover set by the Government for the British Gas Corporation and the rate attained in the past year; and what implications the increased profitability has for (a) the revenue and (b) gas consumers.

The last Government set the British Gas Corporation a one-year financial target for the year ended 31 March 1980 of a return on turnover after interest but before tax of 6·5 per cent. The return actually achieved was 12·1 per cent., the same level as that attained in the previous year. The achievement of a higher level of profit than originally planned moves forward the corporation's liability to corporation tax but will not affect the financial target already announced.