§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, pursuant to his answer of 16 February,Official Report, column 787, what is his estimate of the amount by which output and employment would have increased if the goods and services acquired by overseas residents for £91 billion had remained under British ownership and control.
§ Mr. PortilloDirect inward investment in the United Kingdom can involve either the purchase of existing assets or investment in new plant and machinery. Decisions to locate production in the United Kingdom are an endorsement of the skills and productivity of United Kingdom workers and recognition that the United Kingdom is a good place to do business.
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, pursuant to his answer of 16 February,Official Report, column 787, what is his estimate for the latest two years of the amount of tax paid on the £91 billion together with (a) the reduction in the wealth of the United Kingdom as a result of the profit and know-how element accruing to the foreign owners and (b) the reduction in output and employment in technology as a result of foreign control.
§ Mr. PortilloInvestment itself does not generally attract tax—apart from transaction taxes. Estimates of the United Kingdom taxes paid on profits due abroad can be found in table 5.1 of the Blue Book. For the latest two years the figures are £3,960 million in 1991 and £3,498 million in 1992.
The presence of foreign-owned firms strengthens competition and encourages innovation in the United Kingdom. Inward investment increases or safeguards employment and output.