HC Deb 12 February 1992 vol 203 c973
17. Mr. Jacques Arnold

To ask the Secretary of State for Trade and Industry what proportion of overseas investment in the European Community is made in Britain.

Mr. Leigh

According to the latest information published in the Organisation for Economic Co-operation and Development economic outlook, December 1990, in 1988–89 the United Kingdom had a nearly 40 per cent. share of the total inward foreign direct investment in the EC.

Mr. Arnold

Is not the significance of that reply that in a Community of Twelve, investment in this country is as much as that in the other Eleven put together? Is not that the most telling argument as to the comparative economic strength of this country?

Mr. Leigh

Yes, of course it is. The fact that this country is the No. 1 location for inward investment in Europe shows that the international business community has confidence in our policies. What the House wants to know is whether the international business community has confidence in the policies of the Labour party. We keep asking questions about the Opposition's investment plans: how much they intend to give to the British Technology Group, regional development agencies and investment trusts. There was a Department of Trade and Industry Question Time last month and a debate last week, but the Opposition did not answer those questions. Seven Labour Members are sitting on the Opposition Front Bench. I hope that one of them will stand up now and give the answers, because the whole House wants to know.

Mr. Harry Ewing

Does not the Minister understand that the simple reason for inward investment in Britain has nothing to do with the Government's activities? The Governments of countries such as Germany and France invest in their own industries. The difference is that, far from investing in our own industry, the Government of this country is slaughtering it. Then they have to send Ministers like that youngster around the world with a begging bowl to get other industries to come in to repair the damage that they have done.

Mr. Leigh

Now at last we see the true face of the Labour party on inward investment. The Trades Union Congress has called this alien. I want an answer from one of the hon. Members on the Opposition Front Bench about their views on inward investment. We now have companies such as Fujitsu in the north-east of England, Nissan in the north-east of England and Toyota in Derbyshire bringing wealth into this country and improving our manufacturing competitiveness. What is the attitude of the Labour party towards inward investment? Do the Opposition favour it or reject it?