§ Mr. Leightonasked the Secretary of State for Trade and Industry what assessment he has made of the cause of net Japanese disinvestment in the United Kingdom in 1982 and 1984.
§ Mr. Alan ClarkThe figures showing net disinvestment in the United Kingdom by Japan in 1982 and 1984 relate to net inward direct investment. This covers transactions between Japanese companies and their United Kingdom subsidiaries, associates and branches in all sectors of the 79W economy, including the financial sector. An analysis of inward direct investment into its components is given in the table. This shows net increases from net acquisitions of share and loan capital and from reinvested profits, offset by net reductions in indebtedness to overseas parent companies and head offices overseas.
The annual report for 1986 by the Invest in Britain Bureau, published recently, records more recent planned investment projects by Japan in this country. This shows that the United Kingdom's position as Europe's leading recipient of Japanese investment projects is being maintained.
Inward direct investment from Japan (£ million) 1982 1984 Net acquisitions of share and loan capital 6.1 20.6 Increase in indebtedness due to overseas parent companies and to head offices overseas -72.8 -107.6 Unremitted profits 4.0 52.8 Total -69.7 -34.2 SourceBusiness Monitor MA4
Note. — Including oil companies within the direct investment figures from 1984 onwards did not affect the series for Japanese direct investment in the United Kingdom.