§ 41. Sir Anthony Meyer
asked the Secretary of State for Industry what proportion of net industrial investment by United States, Japanese and Canadian companies in the European Community came to Great Britain in 1980, excluding investment in oil.
§ Mr. Wakeham
The information available is from United States statistics. In 1980 enterprises in the United26W Kingdom accounted for 31 per cent. of gross capital expenditure on fixed assets made by United States majority-owned enterprises in the European Community, other than in oil and banking. This expenditure is not the same as direct investment. Some will have been financed by borrowing from banks in the United Kingdom. Direct investment in the United Kingdom measures the net amounts invested by overseas concerns in the share and loan capital, short-term loans, trade credit and unremitted profits of their United Kingdom affiliates. The affiliates use this to finance increases in working capital, repay loans, etc, as well as to purchase fixed assets.