HC Deb 22 March 1982 vol 20 cc682-3
21. Sir Anthony Meyer

asked the Secretary of State for Industry how many United States-based electronics firms have indicated to him their intention of establishing a base for their European operations in the United Kingdom.

Mr. MacGregor

In 1980 and 1981 five United States electronics companies known to the Invest in Britain Bureau took firm decisions to establish manufacturing facilities in the United Kingdom, and 12 more indicated their intention to expand facilities already located in the United Kingdom. The Invest in Britain Bureau is currently in touch with some 30 United States companies about further projects.

Sir Anthony Meyer

Does my hon. Friend agree that these jobs in the sunrise industries, which are of immense importance both to employment and to the modernising of British industry, could be at risk if doubts grew about the intention of this country to remain in the European Community, as the main reason for investing here would be gone?

Mr. MacGregor

I agree with my hon. Friend, and there is strong evidence for saying that. A survey published recently in a technical magazine showed that Britain is overwhelmingly the preferred location for the great majority of American electronics companies thinking of setting up a European operation. It is also interesting that the survey shows that for these manufacturers the attraction of the United Kingdom is largely our membership of the Common Market, and over 60 per cent. of the firms responding stated that withdrawal from the EEC would have adverse effects on their decisions.

Mr. John Garrett

How many American and other multinational electronics firms have transferred production from this country to Third world countries?

Mr. MacGregor

That is a separate question and I should need notice to answer it. Perhaps the hon. Gentleman will table that question. The provisional figures are interesting. They show that 60 per cent. of the total United States output non-oil direct investment was in the EEC. They also show that 30.4 per cent. of that total came to Britain. Clearly, our membership of the Common Market is a magnet.

Mr. Marlow

Does my hon. Friend agree that American investment in the United Kingdom in the electronics industry is determined not so much by the detail of our relationship with the rest of Europe, but by the opportunity to make a decent profit? For that reason, will my hon. Friend say how important it is that we have plenty of small factory units available so that the electronics industry can expand?

Mr. MacGregor

It is important for small factory units to be made available. As my hon. Friend will know, as a result of the 100 per cent. buildings allowance, in-the last year we have approximately trebled the number of small factory units available through the private sector. My hon. Friend should not discount the enormous importance that American companies attach to our membership of the Common Market.