§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what Government incentives to investment in industry are given in (a) West Germany, (b) Japan, (c) the United States of America and (d) France; and how they compare with those available in the United Kingdom.
§ Mr. Peter ReesComparisons of this kind present a number of dificulties. I refer the hon. Member to the recently published OECD study on international investment and multinational enterprises which includes a survey of investment incentive policies in OECD member countries. After the Budget changes have been fully implemented, the rates of capital allowance for the generality of plant and machinery investment in the United Kingdom will become comparable with those in most other countries and the proposed main corporation tax rate of 35 per cent. will be significantly lower than for most of our major competitors.