Written question asked by Lord Taylor of Goss Moor (Liberal Democrat) on Wednesday, 14 November 2001, in the House of Commons. It was due for an answer on Tuesday, 20 November 2001. It was answered by Andrew Smith (Labour) on Tuesday, 20 November 2001 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if capital assets where the ownership at the end of the contract reverts to the public sector are taken into account when calculating public sector (a) net investment and (b) net worth; and if he will make a statement.

Answer: Matthew Taylor: To ask the Chancellor of the Exchequer if capital assets where the ownership at the end of the contract reverts to the public sector are taken into account when calculating public sector (a) net investment and (b) net worth; and if he will make a statement. [16078] Mr. Andrew Smith: The treatment of this type of contract will depend on how it is classified by the Department's accountants and the National Audit Office. If it is classified as a finance lease, it is included in net investment and net worth. If it is classified as an operating lease, it will not be. The decision will depend on whether it is the private or public sector which bears most of the economic risks and rewards associated with the asset.

Secondary information