HC Deb 03 April 1978 vol 947 cc63-5W
Mr. Watkinson

asked the Chancellor of the Exchequer how much of the petro-dollar surplus has been invested in Great Britain in each of the last four years.

Mr. Robert Sheldon

The share of the OPEC surplus invested in the United Kingdom in recent years is given in the following table:

Total OPEC investible funds$ billion Total invested in United Kingdom $ billion Percentage United Kingdom share
1974 56.4 21.0 36.8
1975 35.7 4.3 12.0
1976 35.8 4.5 12.6
1977* 33.6 4.1 12.4
* Provisional.

Source: Bank of England Quarterly Bulletins

Mr. Watkinson

asked the Chancellor of the Exchequer what is his estimate of the accumulated Organisation of Petroleum Exporting Countries' surplus on oil since 1974.

Mr. Robert Sheldon

The seasonally adjusted accumulated OPEC current surplus from 1974 to the third quarter of 1977, inclusive, is estimated at $156.5 billion in current prices.

Mr. Watkinson

asked the Chancellor of the Exchequer what information he has on which countries in the Organisation for Economic Co-operation and Development are the recipients of OPEC oil surplus funds; and what is his estimate of funds invested in each country.

Mr. Robert Sheldon

Information on the proportion of OPEC investment directed to individual OECD countries is not publicly available except for the United Kingdom and the United States. The table below gives the share of the OPEC current surplus for the years 1974–1977 invested in the United States:

Total OPEC investible funds Total invested in United States Percentage share
1974 56.4 11.6 20.4
1975 35.7 10.0 27.0
1976 35.8 12.0 33.5
1977* 33.6 8.9 27.0
* Provisional.

Source: Bank of England Quarterly Bulletin.

Mr. Watkinson

asked the Chancellor of the Exchequer if he will state in broad terms in what areas the petro-dollar surpluses of Organisation of Petroleum Exporting Countries are presently invested in the United Kingdom.

Mr. Robert Sheldon

By far the greater part of the OPEC funds invested in the United Kingdom is deposited with banks or invested in Government paper. A proportion is invested in equities, debentures and property. With the exception of the last, comparatively insignificant item, OPEC investments are of their nature not directed to specific areas in the United Kingdom.

Mr. Watkinson

asked the Chancellor of the Exchequer in what forms the Organisation of Petroleum Exporting Countries oil surplus in the United Kingdom is presently invested.

Mr. Robert Sheldon

OPEC funds invested in the United Kingdom are predominantly on deposit or in short-term securities. For more detail I would refer my hon. Friend to the table "Estimated deployment of oil exporters' surpluses" on page 29 of the current—March 1978—Bank of England Quarterly Bulletin which is lodged in the House of Commons Library. This table, which appears regularly, gives a breakdown by asset type of OPEC funds invested in the United Kingdom.