§ 19 Mr. Dickensasked the Chancellor of the Exchequer what was the outflow of long-term private investment overseas in the first half of 1966; and whether he is satisfied that the present voluntary limitation on this investment is proving effective.
§ Mr. CallaghanTotal United Kingdom investment overseas, net of disinvestment, amounted to £167 million in the first half of 1966. The answer to the second part of the Question is "Yes".
§ Mr. DickensI am grateful to my right hon. Friend for that information, but does not he agree that it is utterly absurd, 17 and against the national economic interests of our country, to allow wealthy British citizens to continue to export capital abroad, particularly to highly developed countries? Cannot he review the position with a view to placing a ban on the export of capital until our economic position basically improves?
§ Mr. CallaghanNo, Sir, I do not agree. My hon. Friend does not seem to appreciate that there is no voluntary restraint upon the major developed countries outside the sterling area. There is compulsory exchange control, and the only investment that takes place is that which is regarded as being in the long-term interest of Britain. As regards the voluntary programme in relation to developed countries, such as Australia, New Zealand and one or two others, they have been extremely co-operative in recognising our difficulties, and we have not eschewed investment in the less developed countries, for reasons which I believe would be supported by the whole House.