§ Mr. MoleTo ask the Secretary of State for Trade and Industry if she will make a statement on how successful the UK has been in attracting inward investment. [69036]
§ Ms HewittWith my right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs, I am pleased to inform the House that the UK is still Europe's top inward investment location, despite a fall from last year's record totals in the number of investment projects and jobs created.
Invest.UK has announced in its annual review published today, that for the period between 1 April 2001 and 31 March 2002, the number of direct investment projects by foreign owned companies into the UK reported to Invest.UK by its partner agencies in Scotland, Wales, Northern Ireland and the English Regional Development Agencies totalled 764.
The UK is an excellent place to do business and this is reflected in our success in attracting consistently high levels of inward investment since Invest.UK was founded 939W in 1977 as the Invest In Britain Bureau. Indeed we continue to be the top inward investment location in Europe.
Today's Invest.UK figures show that the UK is not immune from the global economic downturn. New inward investment projects in to the UK have fallen 12 per cent. from last year's record figures. This reflects international investment falls across the world, caused particularly by reduced activity in the technology sectors. In the UK the sharpest fall is in US investment in the technology sectors.
In the current economic climate international business is more cautious. Many investors will have postponed decisions until confidence returns and we must be ready to secure these opportunities as recovery comes.
I am arranging for a copy of Invest.UK's annual review to be placed in the Libraries of the House.