§ Q21. Mr. Andrew F. Bennettasked the Prime Minister if she is satisfied with the balance of United Kingdom investment at home and abroad following the abolition of exchange control.
§ The Prime MinisterI am satisfied that most overseas direct investment complements exports and therefore domestic investment. Portfolio outflows following the abolition of exchange controls will also have helped by keeping the exchange rate lower than it would otherwise have been at a time when it was under considerable upward pressure from oil related factors. Domestic investment has held up well over this period. Investment in plant and machinery in the second half of 1981 was 8 per cent. higher than in the first half of 1979. The Department of Industry's investment intentions survey points to further rises in investment in industry in 1982 and 1983.