HC Deb 13 May 1985 vol 79 cc1144-5
8. Mr. Nellist

asked the Chancellor of the Exchequer what is the current level of total overseas private investment compared with 1979.

Mr. Lawson

The total value of United Kingdom private investment overseas has risen from £43 billion at the end of 1979 to £158 billion at the end of last year.

Mr. Nellist

Is the Chancellor of the Exchequer aware that had that rise of over £115 billion been spent in Britain it could have provided 1,000 new general hospitals—[Interruption.] —1,000 new general hospitals, 7,000 new large comprehensive schools— —

Mr. Nicholas Winterton

What, 1,000 hospitals?

Mr. Nellist

And almost—[Interruption.] —

Mr. Speaker

Order. The hon. Gentleman has as much right to speak as anybody else.

Mr. Nellist

And almost 750,000 three-bedroomed houses. Does the right hon. Gentleman not consider that working people in this country would far rather have seen alleviation in the health, education and housing sectors than the Government allowing that £115 billion to chase the super-exploited labour, the cheap labour, of South Africa, Brazil, Korea or Argentina?

Mr. Lawson

I hope that I have your indulgence, Mr. Speaker, to answer the hon. Gentleman's questions fairly fully. First, the bulk of that investment has not been in the cheap labour countries to which he referred, but in the cheap labour country of the United States. Secondly, it is not just the sum of annual flows across the exchanges, but it includes the appreciation in value of the investments that have been made overseas, which has been very substantial. Thirdly, it has in no way prevented investment in this country. In fact, total United Kingdom fixed investment last year was at the all-time record of £55 billion.

Dr. Mawhinney

Is my right hon. Friend satisfied that every Government Department is proving maximally helpful to organisations and communities in this country that are seeking to bring private investment from overseas?

Mr. Lawson

A considerable amount is being done to attract foreign investment from overseas. Over the past few years it has been running at between £3 billion and £4½billion a year. However, this is a particularly important point. Our investment overseas will bring in increasing revenues and, in terms of foreign exchange, increasing invisible earnings over the years that lie ahead.

Mr. Terry Davis

Why does the Chancellor of the Exchequer take such a contemptuous attitude towards those who believe that the profits made in this country should be reinvested in this country? Has he forgotten that the Conservative party used to claim to be the party of patriotism?

Mr. Lawson

That sort of jibe is unworthy of the hon. Gentleman. The Conservative party is certainly the party of patriotism. It is also the party of the open trading system. That system applies to the capital as well as the current account.