HC Deb 25 March 1970 vol 798 cc1402-4
1. Mr. Marten

asked the President of the Board of Trade how many industrial companies with headquarters in the United Kingdom have subsidiary companies in the European Economic Community.

The President of the Board of Trade (Mr. Roy Mason)

About 500.

Mr. Marten

Is it not rather curious that that is the same figure as that given on 2nd May last year? As those 500 on include nearly all Britain's large companies, does not that dispose of the suggestion that if we do not join the Common Market we shall have to set up companies in the Common Market?

Mr. Mason

It is not without reason that I said "about 500." I was not specific either when I gave the reply last year or this year. About 500 is about right. [Interruption.] I cannot be specific, so it is about 500. It is as simple as that. It is a very small figure in relation to the firms that could be involved, because there are 24,000 British companies.

Mr. Heffer

Does my right hon. Friend agree that the growth of international companies is an increasing problem, especially as regards control by the independent Governments? Is it not important that we face this matter when we discuss the question of entry into the Common Market? Does my right hon. Friend agree that it is absolutely essential that there should be a mechanism to control the international companies in the interests of the people as a whole?

Mr. Mason

I am obliged to my hon. Friend for that question. If we were members of the European Economic Community we could, right from the outset, join in the establishment of the European company statute and the setting up of an institutional framework to supervise the European company.

2. Mr. Marten

asked the President of the Board of Trade which British industries will profit and which will not profit if Great Britain joins the European Economic Community.

Mr. Mason

As indicated in the recent White Paper, entry into the European Economic Community will provide both greater opportunities and greater competition for British industry as a whole. But there are too many uncertain factors including the timing and conditions of entry to make it possible to estimate the effects on individual industries.

Mr. Marten

If the right hon. Gentleman cannot estimate what industries will profit and what industries will lose, how on earth can it be honestly said that entry into the E.E.C. will be profitable? What help are the Government considering for those industries that will not profit, or will lose, by entry? They must have some.

Mr. Mason

The "about 500" companies with subsidiaries in Europe, that I mentioned in reply to Question No. 1, are already benefiting from having subsidiaries there, but they would benefit much more if we were in the Community. The hon. Gentleman has no doubt read the report of the C.B.I., which is very much in favour of entry.

Mr. Henig

Is it not the case that it would be our best-organised and most advanced industries that would benefit most from entry into the Common Market? Is not this, therefore, an extra reason for getting on with industrial organisation, because the pay-off will be so great?

Mr. Mason

Of course, the firms that could respond very vigorously to the new situation in good time are likely to gain most from it.

Mr. Ridley

Does the right hon. Gentleman's insistence that it is a good thing to have European subsidiaries mean that the Government have at last been converted to the importance of having overseas investment all over the world?

Mr. Mason

The hon. Gentleman keeps coming back to overseas investment. I have told him time and time again that it is on the increase. In the three-year period 1966, 1967 and 1968–69 we increased overseas investment by a total of about 22 per cent. The sum of £1,000 million has been invested overseas during that time. A great deal of investment is taking place in this country, and that would not go into the E.E.C. either.