§ Mr. Hordern
asked the Chancellor of the Exchequer by what extent the outflow from the United Kingdom of interest, profits and dividends of the private sector and the public sector, respectively, has increased since 1964; and to what he attributes these increases.
§ Mr. Taverne:
An average annual increase of about 9 per cent. for the private sector and about 14 per cent. for the public sector. The increase for the latter is mainly due to the cost of servicing loans incurred between 1964 and 1968. Since the end of 1968 there has been a substantial repayment of debt. Over the whole period higher earnings by overseas owned companies in the United Kingdom, together with higher remittances on portfolio and other investment, account for 121W the increase on private account. At the same time receipts by the United Kingdom of interest profits and dividends increased by about 8 per cent. per annum.