§ Mr. Batisteasked the Chancellor of the Exchequer what is the current level of United Kingdom investment overseas; into what categories it is divided for statistical purposes; and what is the estimated annual rate of return on such investment.
§ Mr. Ian StewartThe preliminary estimates of the gross level of United Kingdom investment overseas at the end of 1985 is just over £180 billion. This figure is composed of direct investment of about £75 billion and portfolio investment of around £105 billion. Details of these and other United Kingdom assets and liabilities overseas are published annually in "United Kingdom Balance of Payments—The Pink Book" (see Tables 11.1, 11.2 and 13.2 in the 1985 edition).
Official estimates of the rates of return on overseas investment are not available because there is insufficient information on which to base them. Part of the return is in the form of interest, profits and dividends, as shown in the balance of payments current account (published quarterly in Economic Trends) However, the full return on assets also includes capital gains (or losses) for which separate information is not available. A discussion of the rate of return on United Kingdom assets and the problems associated with calculating it may found in Her Majesty's Treasury's economic progress report (No. 175 February 1985) "United Kingdom overseas assets and liabilities".