§ 30. Mr. Biggs-Davisonasked the Chancellor of the Exchequer what foreign 585 exchange control he exercises in respect of United Kingdom companies setting up subsidiaries or factories in France, the Federal German Republic, the Netherlands, Belgium, Luxembourg or Italy since the formation of the European Economic Community; and if he will give a list of the companies which have done so.
§ Mr. ErrollConsent under the Exchange Control Act, 1947, is required for direct investment projects in all countries outside the sterling area, and no exception is made in favour of any particular countries. A number of proposals for investment in the countries named by my hon. Friend have received consent hut, as these matters must remain confidential, it would be contrary to existing practice to publish a list.
§ Mr. Biggs-DavisonSince factories and subsidiaries are being set up, can we not draw the moral that it is a preferential area of some kind which attracts investment, and should not the countries of the British Commonwealth and other European countries, therefore, get together in some form of association of reciprocal and preferential economic arrangements, without prejudice to making satisfactory reciprocal arrangements with the countries of the so-called European Economic Community?
§ Mr. ErrollAs I said, approval is required for direct investment projects outside the sterling area. Therefore, countries inside the sterling area have an advantage. At the same time, we should not wish to discourage the trend of investment in the countries named by my hon. Friend in his Question.
§ Mr. LawsonWill the Minister take steps to encourage investment in Scotland by those firms, realising that Scotland is very badly in need of such investment?
§ Mr. ErrollYes, the Government are always glad to see investment taking place in Scotland.