The policy worked at the time: big profits were made, and the company was sold out ofprivate equity ownership with a significant rateofreturn being generated.
Moreover, because it would be funded, the basic pension plus could be much larger than today's basic state pension: since 1979, the annual rateofreturn on private pensions was double that assumed by the government in drawing up its plans.
The government would put in funding at a very low interest rate to the green bank and private investors would put in matching funds and receive a reasonable rateofreturn.