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National Enterprise Board

Volume 13: debated on Friday 27 November 1981

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asked the Secretary of State for Industry whether he has determined a revised financial duty for the National Enterprise Board; and if he will make a statement.

The National Enterprise Board has been informed of my determination of its revised financial duty in the following terms:

"It shall be the duty of the Board to be guided in their investment decisions and in disposing of securities by the aim of achieving from 1 January 1981 a cumulative return on capital invested which is comparable with the return on equity investments in private sector industrial undertakings and meets the cost to the Government of public funds invested by the Board.
The Board's performance shall be measured by two tests:
  • (a) the movement in the Financial Times Actuaries Industrial Share Index;
  • (b) the cost of Government borrowing."