§ 3. Mr. Les Huckfieldasked the Chancellor of the Exchequer whether he will make a statement about capital outflows from Great Britain in 1975; and how this compares with previous years.
§ The Chief Secretary to the Treasury (Mr. Joel Barnett)The measurement of capital flows is very complex. The statistics record the effect of net capital flows. In 1975, net capital inflows, including unidentified flows, are provisionally estimated at £610 million. This compares with net inflows of £3,160 million in 1974 and £1,111 million in 1973. Details were released to the Press on 8th March and will be published on 2nd April in the Central Statistical Office's "Economic Trends", a copy of which will be placed in the Library.
§ Mr. HuckfieldDoes my right hon. Friend accept that the outflow situation is very serious? For example, does he realise that in 1973 the total direct outward investment from this country, excluding oil, was 120 per cent. greater than in 1972, more than the total fixed investment by nationalised industries in that year, and more than half the private investment by companies in the United Kingdom? Is it not time that the Treasury seriously examined its whole policy on outflows and inflows?
§ Mr. BarnettIf my hon. Friend examines the figures, he will find that direct investment overseas is largely represented by profits retained locally—ploughed-back profits—which are subject to very strict exchange control.
§ Mr. FarrWill the right hon. Gentleman recheck his figures, because, in every respect, his answer related to inflows while the original Question related only to outflows?
§ Mr. BarnettI do not blame the hon. Gentleman, but he may not have caught my whole answer. I said this is a very complex area, and all the records are for net flows. I was therefore giving the net flows, which happens to be net inflows.
§ Mr. HooleyWhat action is my right hon. Friend taking to stop the outflow of capital to South Africa?
§ Mr. BarnettIf my hon. Friend cares to table a Question on that matter, I shall deal with it.