§ 30. Sir B. Rhys Williamsasked the President of the Board of Trade what is the average yield per cent. which United States companies obtain on their original capital investment in Great Britain after five years and after 10 years.
§ Mr. DellThe only information I have relates to 1965, when the average yield, after United Kingdom taxation, on the net assets of British affiliates of United States companies established in 1956 and in 1961 was 12½ per cent. and 2 per cent. respectively. These figures are based on small numbers and are not necessarily representative.
§ Sir B. Rhys WilliamsIs the hon. Gentleman aware that it is commonplace for American companies to draw 100 per cent. profit per annum on their original investment? Does not this make clear that the Government's policy of restricting credit for British investment in British industry is highly disadvantageous?
§ Mr. DellAs the hon. Gentleman knows from the current Board of Trade forecasts, we expect that investment in this country will rise during the current year. I must emphasise that the figures which I have given are based on a very small sample.
§ 31. Sir B. Rhys Williamsasked the President of the Board of Trade what estimate he has made of the total annual cost in dollars to British-registered companies of their obligations to United States companies for know-how agreements, royalties and patent rights.
§ Sir B. Rhys WilliamsDoes the Minister feel that the growth of American proprietary rights over British industry is contributing favourably to our balance of payments in the long run?
§ Mr. DellThese royalties are in respect of information which is valuable to industry in this country. Forty per cent. of it is in respect of British subsidiaries of American companies. But the hon. Gentleman will know that, taking this country's royalty income and payments as a whole, in 1966, which is the latest year for which figures are available. we were in surplus, not in deficit.