§ Mr. Hoosonasked the Chancellor of the Exchequer if he will give the average rate of investment in British industry by the life companies over the past five years and the similar rate of investment by workers' pension funds over the past five years.
§ Mr. Denzil DaviesThe available information is set out in the table below. It relates to the investments of the long-term funds of insurance companies and pension funds in company securities. The life assurance business of insurance companies is carried on entirely through the long-term funds, together with a small amount of other business. The figures for pension funds relate to all independently funded occupational pension schemes. It should be noted that the net acquisition of compaiy securities by insurance companies and pension funds includes both subscriptions to new issues and transactions in existing securities; these two components cannot be separately distinguished. Also the figures for the long-term funds of insurance companies include a small element of investment in overseas company securities.
LONG-TERM FUNDS OF INSURANCE COMPANIES Net acquisition of company securities (A) Total identified net investment (B) (A) as a percentage of (B) £ million £ million 1970 303 817 37 1971 393 971 41 1972 674 1,270 53 1973 307 1,322 23 1974 32 1,472 2 Average 1970 to 1974 342 1,170 29
PENSION FUNDS Net acquisition of company securities (A) Total identified net investment (B) (A) as a percentage of(B) £ million £ million 1970 440 673 65 1971 410 724 57 1972 419 903 46 1973 345 1,190 29 1974 141 1,313 11 Average 1970 to 1974 351 961 37