EC (Foreign Investment)

HC Deb 28 April 1986 vol 96 cc344-9W

Mr. Austin Mitchell

asked the Secretary of State for Trade and Industry whether he will bring up to date tables 6 to 9 on foreign investment in the evidence submitted by Her Majesty's Treasury to the Treasury and Civil Service Committee on 9 November 1984 in response to the Committee's inquiry on the financial and economic consequences of United Kingdom membership of the EEC.

Mr. Butcher

The available information is given in the tables.

Table 6 United Kingdom: inward direct investment (excluding oil companies)
£ million current prices
				of which:
	World total	EC total	Non-EC total	USA	Japan
1960	135.1	3.7	131.4	84.8	0.1
1961	236.3	17.9	218.4	185.2	-1.9
1962	130.0	2.5	127.5	95.4	-0.1
1963	160.0	10.3	149.7	105.0	0.7
1964	161.9	18.3	143.9	112.7	0.1
1965	196.6	14.6	182.0	150.9	-2.4
1966	195.5	11.2	184.3	154.7	0.5
1967	170.2	53.5	116.7	94.0	1.7
1968	274.1	25.6	248.5	208.3	1.6
1969	322.1	33.9	288.2	204.9	7.5
1970	363.2	61.4	301.8	225.8	7.9
1971	450.3	38.9	411.4	286.2	-3.6
1972	407.5	43.5	364.0	268.0	13.9
*1973	734.4	111.6	622.8	392.7	17.7
1974	853.7	75.5	778.2	409.8	-22.0
1975	615.4	98.0	517.4	310.0	-40.6
1976	798.9	176.4	622.5	549.9	-15.7
1977	1,326.0	268.2	1,057.8	635.7	98.9
1978	1,261.1	290.9	970.2	808.9	-23.9
1979	1,740.0	216.1	1,523.9	993.7	50.9
1980	2,540.9	0.5	2,540.4	1,912.4	14.0
1981	979.7	9.5	970.2	117.5	173.3
1982	1,073.7	136.6	937.1	376.8	-62.7
1983	2,114.7	473.3	1,641.4	1,227.0	188.7
*United Kingdom joined EC.

Note: Figures for 1979, 1980 and 1981 were affected by exceptional loan arrangements between United Kingdom affiliates and their overseas parents.

	World	Europe	*EC	UK	UK as percentage of EC	UK as percentage of world
1972	6,093	2,424	—	320
1973	9,759	4,945	3,827	1,137	29.7	11.6
1974	12,548	5,105	3,541	934	26.4	7.4
1975	9,367	3,248	2,206	535	24.3	5.7
1976	9,528	4,112	3,141	440	14.0	4.6
1977	10,094	4,538	3,857	1,513	39.2	14.9
1978	14,579	7,171	5,743	1,916	33.4	13.1
1979	15,414	8,445	6,561	2,838	43.3	18.4
1980	17,201	10,908	8,904	5,210	58.5	30.2
1981	6,637	2,536	1,051	54	5.1	0.8
1982	-7,901	1,388	829	-9	—	-0.1
1983	2,298	2,609	845	509	60.2	22.1
1984	3,741	936	-20	-391	—	—
* Nine member countries up to 1980; including Greece from 1981 onwards.
† All figures cover all industries except oil. Direct investment is the amount invested in the year in unremitted profits, shares, loans, and short-term indebtedness by United States companies in their overseas subsidiaries, branches and associates.
—=Not available.

Source: Survey of Current Business published by US Department of Commerce.

Japanese direct investment overseas*
	UK	EC	World	UK share of	Share of world investment
				EC	UK	EC	USA
	US$m	US$m	US$m	per cent.	per cent.	per cent.	per cent.
1973–74	734	921	3,916	80	19	24	26
1975–82	496	2,402	22,487	21	2	11	—
1973–82	1,230	3,323	26,403	37	5	13	—
* These Japanese direct investment figures cover only share capital a long-term loans and unlike the United States figures do not include unremitted profits, short-term loans and direct credit.

Source: Japanese Balance of Payments.

Table 8 (Part 1) United Kingdom inward direct investment (excluding oil companies)
£ million
	1960	1961	1962	1963	1964	1965	1966	1967	1968	1969	1970	1971
Total
World	135.1	236.3	130.0	160.0	161.9	196.6	195.5	170.2	274.1	322.1	363.2	450.3
EC	3.7	17.9	2.5	10.3	18.3	14.6	11.2	53.5	25.6	33.9	61.4	38.9
Non-EC	131.4	218.4	127.5	149.7	143.6	182.0	184.3	116.7	248.5	288.2	301.8	411.4
Manufacturing
World	101.7	207.5	91.4	130.7	123.5	150.9	155.3	108.8	234.9	215.8	268.9	339.5
EC	3.8	n/a	-1.9	4.3	12.9	10.0	4.3	37.1	15.9	23.1	37.5	26.2
Non-EC	97.9	n/a	93.3	126.3	110.6	140.9	151.0	71.7	219.0	192.7	231.4	313.3
of which Food Drink Tobacco
World	n/a	n/a	n/a	25.9	11.6	30.5	18.5	10.1	108.5	14.7	10.8	44.4
EC	n/a	n/a	n/a	0.6	0.1	0.2	0.3	—	-0.2	n/a	-0.7	2.0
Non-EC	n/a	n/a	n/a	25.3	11.5	30.3	18.2	10.1	108.7	n/a	11.5	42.4
Chemicals
World	n/a	n/a	n/a	22.3	11.5	21.1	45.7	11.3	43.2	30.0	38.8	67.5
EC	n/a	n/a	n/a	1.1	5.0	2.7	1.0	2.3	13.6	2.8	8.9	13.9
Non-EC	n/a	n/a	n/a	21.2	6.5	18.4	44.7	9.0	29.6	27.2	29.9	53.6
Metal Manufacturing
World	n/a	n/a	n/a	3.7	6.2	11.9	-0.8	-14.4	16.3	2.5	25.4	18.9
EC	n/a	n/a	n/a	0.5	-0.2	0.3	0.2	—	0.4	n/a	3.8	-2.1
Non-EC	n/a	n/a	n/a	3.2	6.4	11.6	-1.0	-14.4	15.9	n/a	21.6	21.0
Mechanical and Electrical Engineering
World	13.4	n/a	33.6	22.2	37.1	52.6	64.3	78.8	26.6	108.7	136.5	125.3
EC	—	n/a	0.1	0.4	7.0	4.6	1.8	33.9	0.2	10.9	14.4	10.0
Non-EC	13.4	n/a	33.5	21.8	30.1	48.0	62.5	44.9	26.4	97.8	122.1	115.3
Vehicles
World	16.0	n/a	9.3	33.0	35.6	17.8	12.1	6.6	22.2	4.0	16.0	39.6
EC	0.8	n/a	-1.9	1.0	-1.1	0.1	0.5	0.1	0.2	2.1	4.5	-6.2
Non-EC	15.2	n/a	11.2	32.0	36.7	17.7	11.6	6.5	22.0	1.9	11.5	45.8

	1960	1961	1962	1963	1964	1965	1966	1967	1968	1969	1970	1971
Textiles
World	n/a	n/a	n/a	1.4	7.6	1.6	0.9	1.1	0.5	2.3	5.5	6.0
EC	n/a	n/a	n/a	-0.1	0.5	1.2	0.1	0.1	0.2	0.1	4.4	3.5
Non-EC	n/a	n/a	n/a	1.5	7.1	0.4	0.8	0.1	0.3	2.2	1.1	2.5
Paper
World	n/a	n/a	n/a	1.9	2.5	0.3	2.3	3.2	5.7	30.4	5.9	15.1
EC	n/a	n/a	n/a	0.1	0.4	—	0.1	0.3	0.6	—	—	0.1
Non-EC	n/a	n/a	n/a	1.8	2.1	0.3	2.2	2.9	5.1	30.4	5.9	15.0
Rubber
World	n/a	n/a	n/a	4.3	0.6	5.0	4.8	2.7	5.8	7.6	5.5	3.2
EC	n/a	n/a	n/a	0.2	0.3	0.5	0.1	0.1	-0.1	n/a	0.1	-1.5
Non-EC	n/a	n/a	n/a	4.1	0.3	4.5	4.7	2.6	5.9	n/a	5.4	4.7
Other Manufacturing (including Shipbuilding)
World	n/a	n/a	n/a	16.5	10.9	10.0	7.5	9.5	6.1	15.7	24.5	19.5
EC	n/a	n/a	n/a	0.5	0.9	0.6	0.3	0.4	0.9	4.7	2.1	6.3
Non-EC	n/a	n/a	n/a	16.0	10.0	9.4	7.2	9.1	5.2	11.0	22.4	13.2
Non-Manufacturing
World	33.4	28.8	38.6	29.3	38.4	45.7	40.2	61.4	39.2	106.3	94.3	110.8
EC	-0.1	n/a	4.4	6.0	5.4	4.6	6.9	16.4	9.7	10.8	23.9	12.7
Non-EC	33.5	n/a	34.2	23.3	33.0	41.0	33.3	45.0	29.5	95.5	70.4	98.1

Table 8 (Part 2) United Kingdom inward direct investment (excluding oil companies)
£ million
	1972	1973	1974	1975	1976	1977	1978	1979	1980	1981	1982	1983
Total
World	407.5	734.4	853.7	615.4	798.9	1,326.0	1,261.1	1,740.0	2,540.9	979.7	1,073.7	2,114.7
EC	43.5	111.6	75.5	98.0	176.4	268.2	290.9	216.1	0.5	9.5	136.6	473.3
Non-EC	364.0	622.8	778.2	517.4	622.5	1,057.8	970.2	1,523.9	2,540.4	970.2	937.1	1,641.4
Manufacturing
World	226.6	452.6	468.0	323.0	590.5	907.0	922.7	1,049.3	1,472.6	266.0	146.3	991.4
EC	17.3	28.8	28.3	33.2	85.6	108.7	120.7	103.6	-91.1	57.5	-50.0	174.9
Non-EC	209.3	423.8	439.7	289.8	504.9	798.3	802.0	945.7	1,563.7	208.5	196.3	816.5
of which Food Drink Tobacco
World	41.3	82.1	71.4	74.9	104.0	57.1	94.7	176.1	230.9	173.4	129.6	258.0
EC	4.3	6.9	1.1	2.4	54.9	n/a	6.6	7.7	27.7	15.6	9.5	19.8
Non-EC	37.0	75.2	70.3	72.5	49.1	n/a	88.1	168.4	203.2	157.8	120.1	238.2
Chemicals
World	56.4	52.7	82.9	35.7	63.4	137.5	334.8	265.9	91.9	208.6	178.7	224.1
EC	9.6	4.1	27.1	5.9	18.2	17.3	8.3	29.4	-16.1	7.5	31.4	65.9
Non-EC	46.8	48.6	55.8	29.8	45.2	120.2	326.5	236.5	108.0	201.1	147.4	158.2
Metal Manufacturing
World	-22.3	14.1	35.1	-10.8	22.9	67.5	-26.7	86.9	43.0	-3.9	-26.8	-69.2
EC	6.0	5.4	2.7	1.0	2.8	15.7	12.8	n/a	-6.9	-17.9	n/a	n/a
Non-EC	-28.3	8.7	32.4	-11.8	20.1	51.8	-39.5	n/a	49.9	14.0	n/a	n/a
Mechanical and Electrical Engineering
World	72.4	179.1	173.5	189.4	257.1	279.7	231.5	417.3	286.3	299.2	10.7	452.4
EC	-0.8	-4.3	-6.6	29.9	-24.0	41.2	8.0	24.5	29.5	28.6	-5.6	58.2
Non-EC	73.2	183.4	180.1	159.5	281.1	238.5	223.5	392.8	256.8	270.6	16.3	394.2
Vehicles
World	33.0	50.6	-41.9	-22.9	67.9	131.0	125.6	-39.2	708.3	-521.6	-137.2	65.8
EC	-1.2	-0.1	0.3	n/a	n/a	n/a	86.9	n/a	n/a	n/a	n/a	n/a
Non-EC	34.2	50.7	-42.2	n/a	n/a	n/a	38.7	n/a	n/a	n/a	n/a	n/a
Textiles
World	1.0	-3.6	48.5	-17.7	-5.2	11.1	-2.9	19.9	-31.2	17.9	10.5	8.7
EC	-1.5	3.6	0.1	-6.6	n/a	2.2	-0.7	4.7	-38.8	n/a	2.7	-1.8
Non-EC	2.5	-7.2	48.4	-11.1	n/a	8.9	-2.2	15.2	7.6	n/a	7.8	10.5
Paper
World	5.2	44.4	27.2	7.9	35.6	72.7	51.2	34.3	31.6	52.7	6.8	-41.5
EC	0.7	15.6	1.1	n/a	30.1	8.7	-0.9	-0.7	-4.5	4.8	-2.2	-12.7

	1972	1973	1974	1975	1976	1977	1978	1979	1980	1981	1982	1983
Non-EC	4.5	28.8	26.1	n/a	5.5	64.0	52.1	35.0	36.1	47.9	9.0	-28.8
Rubber
World	13.2	0.8	13.5	15.8	6.9	31.8	3.1	-3.3	-12.1	-13.6	-97.2	29.3
EC	-0.7	-0.8	1.9	n/a	4.4	n/a	-14.3	n/a	n/a	n/a	-5.5	3.6
Non-EC	13.9	1.6	11.6	n/a	2.5	n/a	17.4	n/a	n/a	n/a	-91.7	25.7
Other Manufacturing (including Shipbuilding)
World	26.3	32.4	57.8	50.8	37.8	1118.7	11.5	91.3	123.9	53.3	71.2	63.8
EC	0.7	-1.5	0.5	0.9	6.3	10.5	14.0	9.1	5.2	15.4	7.9	7.6
Non-EC	25.6	33.9	57.3	49.9	31.5	108.2	97.5	82.2	118.7	37.9	63.3	56.2
Non-Manufacturing
World	180.9	281.9	385.7	292.4	208.3	419.0	338.4	690.7	1,068.3	713.7	927.4	1,123.3
EC	26.2	82.8	47.2	64.8	90.8	159.5	170.2	112.5	91.6	-48.0	186.5	298.4
Non-EC	154.7	199.0	338.5	227.6	117.6	259.5	168.2	578.2	976.7	761.7	740.9	824.9

Table 9
	United Kingdom in-ward direct investment in manufacturing EC £ millions	United Kingdom out-ward direct investment in manufacturing EC £ millions	Net outward investment
1960	3.8	20.2	16.4
1961	n.a.	n.a.	—
1962	-1.9	n.a.	—
1963	4.3	23.9	19.6
1964	12.9	19.9	7.0
1965	10.0	12.7	2.7
1966	4.3	30.4	26.1
1967	37.1	118	80.9
1968	15.9	43.2	27.3
1969	23.1	86.3	63.2
1970	37.5	70.9	33.4
1971	26.2	183.5	157.3
1972	17.3	117.3	100.0
1973*	28.8	272.8	244.0
1974	28.3	166.6	138.3
1975	33.2	108.4	75.2
1976	85.6	287.0	201.4
1977	108.7	322.7	214.0
1978	120.7	304.7	184.0
1979	103.6	94.0	-9.6
1980	-91.1	140.4	231.5
1981	57.5	412.0	354.5
1982	-50.0	121.5	171.5
1983	174.9	259.8	84.9

Note:

EC includes Denmark, Irish Republic and Greece in all years.

^* United Kingdom joined EC.

Source: Overseas Transactions Inquiry.