HC Deb 25 October 1966 vol 734 cc810-1
20. Mr. J. H. Osborn

asked the Chancellor of the Exchequer if he will tabulate in the OFFICIAL REPORT the value of Government investment, Government loans, private portfolio investment, and manufacturing investment, respectively, in the whole world, in the United States of America, in Western Europe, the Commonwealth and developing countries at the present time; what was the income to this country in the year ended 5th April, 1966; and what was the return of capital invested in each of these areas and in total.

Mr. Callaghan

I regret that not all this information can be provided in the form requested by the hon. Member, but I will circulate the available information in the OFFICIAL REPORT.

Mr. Osborn

Can the Chancellor confirm that the drain due to Government expenditure as outlined in the Financial Times is continuing at that rate? Further, will he confirm that return on investment—I mean investment overseas—has been improving over the last five to ten years and state whether or not he expects that this will continue?

Mr. Callaghan

Although I am an avid reader of the Financial Times, I regret that I do not recall that particular article. But I think that the hon. Gentleman, if he studies the statistics contained in the answer to his Question, will find the information he wants.

Following is the information available:

U.K. LONG-TERM ASSETS ABROAD
I. Assets and Income—total
£ million
Value at end-1964 Income in 1964
Official … 817 27
Private
Direct:
Insurance (1) … 420 375
Other (2) … 4,100
Portfolio (3) … 3,600 148 (4)
Other … 1,300 (5) [350] (6)

II. Analysis of certain assets and income by certain areas—value at end-1964, income in 1964
£ million
Official Direct Investment
Assets Income Net Assets Income
U.S.A. — — 410 (7) 46
Western Europe (excluding Irish Republic 26 1 466 24
Common wealth 501 23 2,506 210
Developing countries (8) 523 23 1,394 137

Notes:

(1) Assets incomplete: U.S.A. only.

(2) Assets at estimated book value: excluding oil.

(3) Assets at estimated market value.

(4) Including income on Treasury dollar port folio.

(5) Net assets of oil companies, excluding non commercial real estate and miscellaneous assets.

(6) Including income on private short-term assets and official short-term assets other than (4).

(7) Excluding insurance.

(8) O.E.C.D. definition.

(9) See also "U.K. Balance of Payments, 1966" and Bank of England Quarterly Bulletin 1965.

III. No meaningful figure can be calculated of the return on capital invested in a total of such disparate assets, valued on varying bases.