Overseas Investment

HC Deb 15 April 1969 vol 781 cc963-4

13. Mr. Biffen

asked the Chancellor of the Exchequer what plans he has to relax controls on overseas investment in the non-sterling area.

22. Mr. Ridley

asked the Chancellor of the Exchequer what steps he plans to take to encourage direct investment overseas by British companies.

Mr. Diamond

Any announcements to be made at this time about overseas investment will be made in the course of my right hon. Friend's Budget Statement.

Mr. Biffen

As the bailiffs from the International Monetary Fund will be here later this week, does not the right hon. Gentleman think that the House should not be left in suspense lest we are disappointed by the Budget Statement? Will not he agree that the Government are bound by Article 13 of the Letter of Intent to M. Schweitzer to relax capital restrictions and capital movement at the earliest possible moment?

Mr. Diamond

I am sure that the House should not be held in suspense. If my right hon. Friend the Chancellor of the Exchequer rises to catch your eye, Mr. Speaker, I hope that he will be fortunate.

Mr. Ridley

Is the Chief Secretary aware that, to a large extent, foreign physical trade is being replaced by the making of goods in foreign countries based on foreign investment? Will the Chancellor therefore do everything in his power to stop killing the goose which has been laying the golden eggs in the past?

Mr. Diamond

There is practically no evidence to substantiate what the hon. Gentleman says, and if he will be good enough to compare the experience of other countries with ours, he will understand why I say that.

Mr. Cant

Will my right hon. Friend remind the hon. Member for Oswestry (Mr. Biffen) that it is more honourable to solve the problems with which we are faced by having controls on overseas investment than to do what the Americans are doing, which is to relax their foreign investment controls and make up the balance by raiding the capital markets of Europe for Euro-dollars?

Sir Harmar Nicholls

In view of the evidence that 40 per cent. of our total exports are invisible and, of the 40 per cent., 60 per cent. is income from overseas investments, is not it ludicrous to give the impression that we are not prepared to encourage such investments?

Mr. Diamond

I did not give that impression, nor is it the truth.