asked the Secretary of State for Transport if he will allow greater flexibility in the financial targets applied to Freightliner; and if he will make a statement.

We have set an objective that the non-supported businesses should between them earn a return of 2·7 per cent. as a current cost operating profit on net assets before interest by 1989–90, and that they should plan on the basis of a required rate of return of 5 per cent. on programmes of new investment. It is for British Rail to set targets for individual businesses within this framework.