HC Deb 08 February 1967 vol 740 cc298-9W
44. Mr. Biffen

asked the President of the Board of Trade if he is satisfied with the expected levels of investment in manufacturing industry during the current year; and if he will make a statement.

Mr. Jay

I would refer the hon. Member to the Answer I gave the hon. Member for South Angus (Mr. Bruce-Gardyne) on 1st February.—[Vol. 740, c. 496–7.]

83. Mr. Bruce-Gardyne

asked the President of the Board of Trade what adjustment he calculates should be made to his Department's forecast of a 10 per cent. drop in private manufacturing investment as a result of the 5 per cent. increase in investment grants.

Mr. Jay

The temporary increase in grants will be a real stimulus to manufacturing investment, but there is no basis for revising the forecasts of investment which manufacturers supplied at the end of last year.

Mr. J. H. Osborn

asked the President of the Board of Trade (1) if he will tabulate in the OFFICIAL REPORT the value of investment by manufacturing industry, as distinct from private portfolio investment, from overseas companies in Great Britain in total, from the United States of America, and from Europe as at 1st January, 1967; how much was invested, respectively, in 1965 and 1966; and what forecast he will make of the trend of investment for the current year;

(2) if he will tabulate in the OFFICIAL REPORT the value of investment by manufacturing industry, as distinct from private portfolio investment, by companies in Great Britain invested in total

PRIVATE DIRECT INVESTMENT, FOR INDUSTRIES OTHER THAN OIL OVERSEAS INVESTMENT IN THE UNITED KINGDOM
£m.
Total United States Europe*
Book value of net assets at end 1964† … … … 1,822 1,301 297
Net capital inflow 1964 … … … 162 116 30
1965‡ … … … 161 … …

UNITED KINGDOM INVESTMENT OVERSEAS
Total United States Europe* Commonwealth
Book value of net assets at end 1964† 4,112 410 467 2,507
Net capital outflow 1964 … … 262 43 46 118
1965‡ … … 272 … … …
* Excluding Irish Republic.
† Excluding banking and insurance.
‡ Provisional—figures for the year 1966 and detailed figures for 1965 are not yet available.

A census of British direct investments overseas and of foreign direct investments in the United Kingdom, excluding the oil, insurance and banking industries, was taken in respect of the end of 1962. The estimates for end-1964 were obtained by adding the net investment flows in 1963 and 1964 to the 1962 benchmark figures. This method cannot reliably be used for more than two years since it fails to take account of the writing-off or revaluation of assets. A census of the position at end-1965 is now in progress.

Industrial analyses of net assets at the end of 1962 and of investment flows in 1963 and 1964, showing separate figures for manufacturing industry, were published in the Board of Trade Journal on 7th August, 1964 and 10th June, 1966, respectively. Separate figures for manufacturing industry for 1965 are not yet available.

It is not the practice to give forward estimates.