HC Deb 06 November 1968 vol 772 cc870-1
16. Mr. Higgins

asked the President of the Board of Trade what forecasts he has made of the direct investment in the overseas sterling area and the non-sterling area, respectively, in 1968; and whether they confirm a trend towards a lower proportion of investment in the overseas sterling area.

Mr. Dell

I cannot give exact figures which are liable to fluctuate from year to year, but I expect the proportion in the Overseas Sterling Area to be about 50 per cent., as compared with about 60 per cent. prior to 1966.

Mr. Higgins

Does not the hon. Gentleman agree that, if we are to appraise the trend correctly, we need a true estimate of the rate of return on overseas investment? Would he agree that the Reddaway basis, which takes no account of capital gains in overseas investment, is inadequate, and will he ensure that capital gains are taken into account in future estimates?

Mr. Dell

As the hon. Gentleman is aware, Professor Reddaway's final report is shortly to be published, and no doubt we shall all have an opportunity of discussing it then, particularly in the light of everything that both the hon. Gentleman and I said on this subject in 1965. I think that so far Professor Reddaway confirms my view of the subject rather than the hon. Gentleman's.

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