HC Deb 19 July 1967 vol 750 cc2099-100
5. Mr. Bishop

asked the President of the Board of Trade what representations have been made to him by the Confederation of Shipbuilding and Engineering Unions on the need to examine the increasing penetration of American capital in the United Kingdom engineering industries; what reply he has sent; and if he will make a statement.

The President of the Board of Trade (Mr. Douglas Jay)

I have received no representations. The Government's policy toward foreign investment in Britain is well-known.

Mr. Bishop

Is my right hon. Friend aware of the great concern relating to the difficulties of trade union representations within these firms; to the brain drain, including loss of British designers, and such problems as the situation arising within the Ford Motor Company, as a result of the proposed integration between Ford Europe and Ford Germany?

Mr. Jay

As my hon. Friend knows, in many cases of foreign investment in this country where new projects are started new assets are created, and we welcome this. On the other hand, we have powers under the Monopolies and Mergers Act, if necessary, to examine and, in the last resort, to prevent the acquisition of control.

Mr. Patrick Jenkin

Will the right hon. Gentleman explain to his hon. Friend that this is a direct result of the change in the double taxation arrangement which has made it more economic for an American company than for a British company to invest in this country?

Mr. Jay

That is another question.