HC Deb 23 April 1953 vol 514 cc1371-2
1. Mr. Shepherd

asked the Chancellor of the Exchequer to what extent the Treasury is now facilitating United Kingdom investment in Canada.

The Economic Secretary to the Treasury (Mr. R. Maudling)

It is clearly in our interest to facilitate United Kingdom participation in Canadian development, and we stand ready to provide dollars, within the limits of our resources, for direct investment in productive enterprises which will benefit our balance of payments. We cannot at present afford to allow portfolio investment.

Mr. Shepherd

As these facilities have been in existence for some time and are not generally known, can my hon. Friend devise means whereby publicity is given to them?

Mr. Maudling

My impression is that these facilities are fairly well known and we have been heartened to see the development that has taken place recently. So far in 1953 the amount authorised for investment in Canada has been about £17½ million. I am grateful to my hon. Friend for any additional help in giving publicity to this matter.

Mr. Ellis Smith

In view of the proposed development of hydro-electrification in Canada, is special attention being given to the need for credit facilities to enable industry in this country to play its part?

Mr. Maudling

The difficulty is not one of credit facilities, but of the availability of Canadian dollars. We are anxious at all times to consider any suggestion put forward by people wanting to invest in Canada.

Mr. Grimond

Will the hon. Gentleman make it clear that these facilities are for new investment and go beyond the mere transferring from one type of investment to another?

Mr. Maudling

Yes, Sir. This is for new investment, and it is direct investment.

2. Mr. Shepherd

asked the Chancellor of the Exchequer the value, at current prices, of British overseas investments.

Mr. Maudling

No reliable estimate of the current value of our overseas investments is available.

Mr. Shepherd

From the figures given at the Washington loan negotiations and the annual payments of interest received by this country, would my hon. Friend say that these investments must be about £5,000 million?

Mr. Maudling

I would not like to give figures. Although it is true that the Bank of England publish periodical investment estimates of the nominal value of overseas investments, there is no reliable indication of the current market value.

Mr. Emrys Hughes

Is the Minister aware that some British companies invest sums in Canada and thus escape paying the Excess Profits Levy? Is he aware that this was so in the case of the Hawker-Siddeley Company, which is manufacturing a new bomber?

Mr. Maudling

I cannot accept the hon. Member's interpretation of the operation of the Excess Profits Levy.