HC Deb 31 July 1997 vol 299 cc646-7W
Mr. Corbyn

To ask the President of the Board of Trade what assessment her Department has made of the impact of the multilateral agreement on investment on the Government's plans for corporate taxation, with particular reference to the windfall tax on privatised utilities. [12248]

Mrs. Roche

We do not expect that the multilateral agreement on investment will impact on the Government's plans for corporate taxation, including the windfall tax on privatised utilities.

Mr. Corbyn

To ask the President of the Board of Trade what assessment her Department has made of the impact of the multilateral agreement on investment on Her Majesty's Government's ability(a) to restrict foreign investment in sensitive sectors and (b) to discriminate in favour of high value-added investments. [12246]

Mrs. Roche

The multilateral agreement on investment will provide for sectoral restrictions on foreign investment. These restrictions must be notified in advance. The UK's list is short, reflecting the liberal approach we take to foreign investment. We would not expect the multilateral agreement on investment to impair the UK's ability to attract high value-added investments.

Mr. Corbyn

To ask the President of the Board of Trade what assessment her Department has made of the likely impact of the multilateral agreement on investment on the British Government's existing obligations in relation to health, environmental and labour regulations. [12249]

Mrs. Roche

The multilateral agreement on investment is essentially about the non-discriminatory application of regulations as between foreign and domestic investors. Since the UK regulations are generally applied in a non-discriminatory way, they will not be undermined by the agreement.

Mr. Corbyn

To ask the President of the Board of Trade what assessment her Department has made of the impact of the multilateral agreement on investment on the Government's ability to promote local community development programmes through(a) laws requiring banks to invest in economically deprived areas, (b) development funds marked for local businesses, (c) tax breaks for local companies and (d) other measures. [12247]

Mrs. Roche

The multilateral agreement on investment should not conflict with local community development programmes.

Mr. Corbyn

To ask the President of the Board of Trade what assessment her Department has made of the impact of the multilateral agreement on investment on the Government's ability to ensure that transnational corporations receiving public funds in assisted areas are required to meet specific performance objectives. [12245]

Mrs. Roche

The multilateral agreement on investment's rules on performance requirements are still under negotiation. The Government's approach is to ensure that such rules are consistent with regional development policies so that it would remain possible to obtain certain commitments as a condition for receiving public funds.