§ Mrs. Ann Taylorasked the Secretary of State for Industry what has been the level of investment in British industry by companies located in the United Kingdom, that is net of direct inward investment, for each of the last 50 years; what 566W has been the level of direct outward investment for each of these years; and what the latter has been each year as a percentage of the former.
§ Mr. Kaufman, pursuant to the reply [Official Report, 7th August 1975; Vol. 897, c. 511–12] gave the following information:
Fixed investment in the United Kingdom includes fixed investment by all companies operating in the United Kingdom, including those which are affiliates—that is, branches, subsidiaries and associates—of overseas companies. Inward direct investment covers a wide range of financial transactions between overseas companies and their affiliates in the United Kingdom which may be made to finance investment in assets other than fixed assets—for example, additions to working capital and trade investments.
It is not possible to distinguish separately investment in fixed assets which is financed from inward direct investment. Similarly, outward direct investment covers the same range of financial transactions between United Kingdom companies and their overseas affiliates. Outward direct investment is generally financed from overseas borrowing and profits retained overseas. There is no necessary connection between overseas direct investment and investment in fixed assets in the United Kingdom.
Annual information on inward and outward direct investment is given in Table 24 of United Kingdom Balance of Payments 1963–73 and will be brought up to date in the corresponding publication for this year at the end of August. Annual information on fixed investment in the United Kingdom is given in Section XI of National Income and Expenditure 1963–73; the corresponding publication for this year will be issued early in September.