Private Investment Overseas (Hansard, 27 February 1968)

§ 69. Mr. Maurice Macmillan
asked the Chancellor of the Exchequer what was the total amount of private investment overseas in each of the five years 1963 to 1967; and what proportion of this total was represented by profits earned and retained overseas compared with the proportion represented by new investment of United Kingdom funds.
297W

§ Mr. Harold Lever
Since the subject is somewhat complicated, I will, with permission, circulate the available information in the OFFICIAL REPORT.

£ million

1963 1964 1965 1966 1967 Jan.-Sept.

Total private investment (net of disinvestment) 329 406 356 317 223

II. Figures are not available for reinvestment of profits in overseas branches of U.K. firms, or in oil investment: and the concept is not appropriate for portfolio investment. The following figures relate only to investment in overseas subsidiaries and associates, excluding oil. They are on a net basis, taking into account disinvestment.

£million

1963 1964 1965 1966 1967 Jan.-Sept.

(a)U.K. investment (net of disinvestment) in overseas subsidiaries (excluding oil) 201 257 301 297 n.a.

(b) Net retained profits of subsidiaries (excluding oil) 118 147 168 179 n.a.

(b) as percentage of (a) 59 57 56 60 n.a.

III. Figures for the flows of private investment by the U.K., gross of disinvestment, are available only for 1965. These, for the same overseas subsidiaries as in II above and including accounting adjustments within the overseas subsidiary, are:—

£ million

1965

(a)Gross investment in overseas subsidiaries … … … … … … … 473

(b)Gross unremitted profits of subsidiaries … … … … … … … 198

(b) as percentage of (a) … … … … … … … 42

IV. The "new investment of U.K. funds" in 1965 probably accounted for less than one quarter of the gross investment by U.K. firms in overseas subsidiaries (excluding oil). The remainder has mainly been financed by (in addition to unremitted profits) trade credit, overseas borrowing and the use of investment currency. A great deal of detailed information about direct investment in the year 1965 is published in the Board of Trade Journal for 30th June, 1967.

§ 70. Mr. Maurice Macmillan
asked the Chancellor of the Exchequer what, in each of the five years 1963 to 1967, were the gross earnings of private investment overseas in interest, profit and dividends; and what proportion these earnings repre-

£Million

Jan.-Sept.

1963 1964 1965 1966 1967

(a) Total gross invisible receipts of which— … 2,496 2,677 2,882 2,890 2,270

(b) Private interest, profits and dividends^* … 807 856 956 885 636

(c) As percentage of (a) … 32 32 33 33 28

^*Includes interest on short-term and other financial credits and investments; includes unremitted profits.

					£ million
	1963	1964	1965	1966	1967 Jan.-Sept.
Total private investment (net of disinvestment)	329	406	356	317	223
II. Figures are not available for reinvestment of profits in overseas branches of U.K. firms, or in oil investment: and the concept is not appropriate for portfolio investment. The following figures relate only to investment in overseas subsidiaries and associates, excluding oil. They are on a net basis, taking into account disinvestment.

					£million
	1963	1964	1965	1966	1967 Jan.-Sept.
(a)U.K. investment (net of disinvestment) in overseas subsidiaries (excluding oil)	201	257	301	297	n.a.
(b) Net retained profits of subsidiaries (excluding oil)	118	147	168	179	n.a.
(b) as percentage of (a)	59	57	56	60	n.a.
III. Figures for the flows of private investment by the U.K., gross of disinvestment, are available only for 1965. These, for the same overseas subsidiaries as in II above and including accounting adjustments within the overseas subsidiary, are:—

								£ million
								1965
(a)Gross investment in overseas subsidiaries	…	…	…	…	…	…	…	473
(b)Gross unremitted profits of subsidiaries	…	…	…	…	…	…	…	198
(b) as percentage of (a)	…	…	…	…	…	…	…	42
IV. The "new investment of U.K. funds" in 1965 probably accounted for less than one quarter of the gross investment by U.K. firms in overseas subsidiaries (excluding oil). The remainder has mainly been financed by (in addition to unremitted profits) trade credit, overseas borrowing and the use of investment currency. A great deal of detailed information about direct investment in the year 1965 is published in the Board of Trade Journal for 30th June, 1967.

						£Million
						Jan.-Sept.
		1963	1964	1965	1966	1967
(a) Total gross invisible receipts of which—	…	2,496	2,677	2,882	2,890	2,270
(b) Private interest, profits and dividends^*	…	807	856	956	885	636
(c) As percentage of (a)	…	32	32	33	33	28
^*Includes interest on short-term and other financial credits and investments; includes unremitted profits.