§ 6. Mr. Ian BruceTo ask the Secretary of State for Foreign and Commonwealth Affairs what steps his Department is taking to encourage inward investment in the United Kingdom.
§ Mr. GoodladThe Foreign and Commonwealth Office, working very closely with the inward investment bureau of the Department of Trade and Industry, attaches a high priority to securing inward investment in the United Kingdom. We have dedicated inward investment teams at our posts in the United States, Canada, Germany, Switzerland, Japan and South Korea. In all our other markets, there are knowledgeable staff in our posts who can develop and respond to inward investment opportunities. In 1992-93, there were at least 303 inward investment decisions by foreign companies, creating or safeguarding more than 56,000 jobs.
§ Mr. BruceCan my right hon. Friend tell the House how successful Britain has been compared with other nations in attracting inward investment? Will he have a conversation with his colleagues who are on the Front Bench this afternoon and so learn of their experiences when visiting south Dorset? Information about what a wonderful place south Dorset is for inward investment can then be passed on to diplomats throughout the world, to ensure that the success in the rest of the country is duplicated in my area.
§ Mr. GoodladThe answer to the first part of my hon. Friend's question is: very successful. One third of all inward investment in the European Union by the end of 1992 was in the United Kingdom. By March 1993, we had attracted 41 per cent. of all Japanese investment in the European Union and by the end of 1992, we had attracted almost 39 per cent. of all United States inward investment in the EU. I congratulate my hon. Friend on his dedication to the cause of inward investment in south Dorset and will ensure that that message is transmitted throughout the world.
§ Mr. EnrightWould not it be a great disincentive to inward investment if, in the future, when monetary union came about in Europe, Britain rigidly refused to go in? Will the Minister condemn those buffoons who are going around at the moment proclaiming it as a great principle that we should not join a monetary union?
§ Mr. GoodladI am entirely convinced that the conditions that have attracted so many foreign businesses to invest in the country will prevail in future as they have in the past under a Conservative Government.
§ Sir Anthony GrantIs my right hon. Friend aware that the whole history of events since the last war has demonstrated that the one great disincentive to invest in Britain is the fear of a Labour Government?
§ Mr. GoodladMy hon. Friend is absolutely right, but we shall disseminate throughout the world the message that there is no such danger.
§ Ms QuinAs there seems to be a peculiar belief on the Conservative Benches that low wages and poor working conditions attract inward investment, will the Minister explain why Nissan, in its evidence to the Select Committee on Employment, said, first, that the social chapter would be no problem for it because it already exceeded its provisions and, secondly, that it thought that the low-wage, low-skill approach to the economy was the road to economic disaster?
§ Mr. GoodladThe evidence given by Nissan is obviously a matter for it, but it is an extremely enthusiastic investor in the United Kingdom and is very welcome. The reason why we are so successful is that we have low inflation, low taxes and good industrial relations. The Labour party would make this a high-cost area and would deter foreign investment. People recognise that, but they also recognise that there is no danger of its being allowed to happen.
§ Mr. Charles KennedyDoes the Minister agree that one of the keys to inward investment is the ability of the regions and the nations of the United Kingdom to offer a good base in terms of transport, communications, infrastructure and the like? Is that advantage—or potential advantage—as great as it could be, given that there is misuse of the European Union structural social funding in the sense that it is not being made truly additional to the funds that the Treasury should be making available through the local authorities and other funding bodies? Will the Minister take steps to correct that deficiency so that we can realise the full potential which would otherwise be available to different parts of the country?
§ Mr. GoodladObviously, a company's final decision as to where to locate is a matter for its commercial 710 judgment. It is one of the objectives of the Invest in Britain Bureau to encourage firms to set up in assisted areas when that is appropriate to the company's needs. Its enormous success in doing so suggests that, for once, the hon. Gentleman is uncharacteristically quite wrong.
§ Mr. ViggersMy right hon. Friend has already referred to the success of Japanese investment in this country, which accounts for more than 40 per cent. of all Japanese investment in Europe. Does he agree that to underpin, complement and promote still further that Japanese investment, it is entirely appropriate that there should be a much wider educational and cultural inter-relationship between the United Kingdom and Japan?
§ Mr. GoodladYes. My hon. Friend is on to quite an important point. He will be aware, because he makes a considerable personal contribution to this process, that the Government are seeking to fulfil the objectives that he sets out.