§ 3.11 p.m.
§ Lord Molloy asked Her Majesty's Government:
§ How many United Kingdom firms have relocated to other European countries during the past 12 months; and what contribution this has made to unemployment.
Viscount AstorMy Lords, detailed information is not kept in this way, but over the past five years inward investment into the United Kingdom from other EC countries has exceeded investment in the reverse direction by £4 billion.
§ Lord MolloyMy Lords, I thank the noble Viscount for that reply. Is he aware that the number of firms relocating to other European countries is increasing and that that could pose a grave danger to the economy of this country and prevent any recovery? Pilkington of Merseyside has said relocation occurs as firms do not wish to fall into a tax trap. Relocations have cost 700 Liverpudlians their jobs. It is said that many more jobs will be lost. Further, many students in our universities had the intention of serving British industry but those industries have relocated to Europe and those students who wished to help this country now find themselves on the dole. That is a distressing submission. Is the noble Viscount aware that the number of company liquidations is increasing? Relocation to Europe is increasing and the Government should seriously consider the implications of that.
Viscount AstorMy Lords, I can best reply to the point made by the noble Lord by quoting from a recent CBI report entitled Competing with the World's Best that states:
investments overseas by UK companies should not be seen as weakening, but strengthening the UK's manufacturing base. If employment and investment prospects in the UK are to be sustained, the UK needs to remain a receptive and attractive base for inward and outward investment".