VALUATION OF HYDRO-ELECTRIC UNDERTAKINGS IN SCOTLAND: Memorandum by the Secretary of State for Scotland.

principle from the second method but it which are inherent in that method. Its avoids certain advantage over difficulties the first is and anomalies that it relates the degree of relief to the extent to which the capital expenditure involved in the development of hydro-electric works is abnormally high, and so provides a direct incentive to the development of projects which are financially less attractive to the developer but which economically my be of vital importance to the Highlands. 5. The Committee recommend that this concession should be granted not only to the North of Scotland Hydro-Electric Board but to existing hydro-electric undertakings in Scotland with the exception of (a) the Galloway Water Power Company, which enjoys a concession not less favourable under the terms of its local Act and (b) hydroelectric undertakings which are valued as part of industrial undertakings and so enjoy the benefits of industrial derating.