§ Mr. Leeasked the Chancellor of the Exchequer what is his estimate, to the latest date, of the total investment capital to have left the United Kingdom and gone to other Common Market countries since the date of Great Britain's entry to the EEC.
§ Mr. DellI have been asked to reply.
594WUnited Kingdom investment overseas is generally financed without export of investment capital. However, between March 1972 and March 1974 official exchange of up to £1 million per project per year was available to United Kingdom companies to finance direct investments in EEC countries. Under this rule, between 1st January 1973 and 31st March 1974, £249 million of official exchange was used to finance direct investments, other than those of oil companies, in the EEC. Since March 1974, the exchange control rules ensure that official exchange is available only to finance the very few projects that promise a rapid and continuing return to the United Kingdom balance of payments, which in the main are to increase exports. About £6 million a year for the EEC is authorised under these arrangements. Other than this, exchange control ensures that overseas investment by United Kingdom residents is financed by foreign currency borrowing or out of profits that are allowed to be retained which involve no investment capital outflow.