HC Deb 17 May 1989 vol 153 cc305-6
6. Mr. Harry Greenway

To ask the Chancellor of the Duchy of Lancaster how much inward investment there has been in manufacturing industry in the past year; what was the figure five, 10 and 15 years ago; and if he will make a statement.

Mr. Newton

The latest available data relate to 1987 when net direct inward investment in United Kingdom manufacturing was £2,582 million. The corresponding figure for 1984 was £1,056 million, for 1979 £1,049 million and for 1974 £468 million. These figures, together with recent announcements such as those by Fujitsu, Bosch and Toyota, clearly indicate the enhanced attraction of the United Kingdom as a base for manufacturing industry.

Mr. Greenway

Does my hon. Friend agree that those figures are an excellent indication of the competitiveness of this country and will be good for jobs here? Will he try to encourage investment in the television technology industry with a view to producing television equipment which could show the Chamber as it is—if our proceedings are to be televised—rather than in the truncated form proposed in the Select Committee report published today? We should have the Chamber televised as it is or not at all.

Mr. Newton

There are clearly a number of views on how wise it would be to televise the Chamber as it is. I shall leave hon. Members to make their own judgment about that. In reply to my hon. Friend's broader questions, I can tell him that we shall continue to do all that we can to encourage mobile international investment in Britain to contribute to the further strengthening of our manufacturing industry.

Dr. Reid

The figures that the Minister has given for inward investment are very impressive. Is he aware that the equally impressive figures issued by the Scottish Office and "Locate in Scotland" are under investigation by the Public Accounts Committee and the National Audit Office, which found that the figures had overestimated the amount of inward investment by 50 per cent.? Why should we believe that the Minister's figures are any different from those given by the Scottish Office?

Mr. Newton

I am aware of the argument to which the hon. Gentleman refers, but obviously when it comes to figures about the exact number of jobs created there is scope for a certain amount of argument. [HON. MEMBERS: "Fifty per cent.?"] There is clearly no room for argument about the contribution that is being made by new direct investment to the creation of new jobs on a large scale or about the contribution that that is making to the strengthening of the British economy.

Mr. Baldry

Will my right hon. Friend confirm that there was about £5 billion of overseas investment in Britain last year—a 20 per cent. increase on 1987? As is demonstrated by Fujitsu in County Durham, Bosch in Cardiff and Sony in Basingstoke, the Government have created a climate favourable to overseas investors, who wish to invest in Britain because they know that we now have a successful business climate.

Mr. Newton

Yes, I emphasise what my hon. Friend has said. The figures that I gave related only to direct investment in manufacturing. The total amount is significantly larger.