HC Deb 28 July 1988 vol 138 cc371-4W
Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster whether he will bring up to date the figures on direct investment in manufacturing in table 9 of the evidence submitted by Her Majesty's Government to the Treasury and Civil Service Committee on the financial and economic consequences of United Kingdom membership of the European Communities (page 25 of HC57-II Session 1984–85).

Mr. Maude

The available information is given in the tables:

United Kingdom net direct investment in manufacturing in the EC1 2
Table 9
United Kingdom inward direct investment in manufacturing United Kingdom outward direct investment in manufacturing Net outward investment in manufacturing
1960 4 21 17
1961 n/a n/a n/a
1962 -2 16 18
1963 4 24 19
1964 12 22 9
1965 10 15 6
1966 4 35 30
1967 37 16 -22
1968 16 47 32
1969 23 99 76
1970 38 74 37
1971 26 191 165
1972 17 128 111
19733 29 299 270
1974 28 196 168
1975 33 118 85
1976 86 302 217

United Kingdom inward direct investment in manufacturing United Kingdom outward direct investment in manufacturing Net outward investment in manufacturing
1977 109 352 243
1978 121 326 205
1979 104 114 11
1980 -91 161 253
1981 57 443 386
1982 -66 163 229
1983 201 257 56
1984 219 305 86
1985 100 687 587
1986 161 777 616
1 Figures for 1960–1963 exclude oil companies.
2 EC includes Denmark, Irish Republic, Greece, Spain and Portugal in all years.
3 United Kingdom joined EC.

Source: Overseas Transactions Inquiry.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster what assessment he has made of the causes of the fall in the unit value of imports of finished manufactures in terms of the pound sterling in May; and what effect this has had on the volume of imports.

Mr. Alan Clark

The type of assessment sought by the hon. Member is hardly appropriate to a movement over such a short period.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster whether he will publish in theOfficial Report a table showing for (a) the United Kingdom, (b) West Germany, (c) Japan, (d) France, (e) Italy and (f) the United States of America information on imports of finished manufactures as a percentage to one place of decimals (i) gross product and (ii) manufacturing output in 1986 and in 1987; and if he will provide the same information for exports.

Mr. Alan Clark

Data on international trade in finished manufactures and on manufacturing output are not available on a common basis, and no valid comparison is possible. Information on imports and exports of finished manufactures in relation to gross domestic product is in the following table:

Trade in Finished Manufactures1 as a Proportion of Gross Domestic Product
Per cent
Imports Exports
1986 1987 1986 1987
United Kingdom 10.4 10.9 9.1 9.7
Federal Republic of Germany 8.6 8.8 15.9 15.1
Japan2 1.1 1.3 8.4 7.7
France2 7.5 8.2 7.4 7.5
Italy2 5.2 5.7 9.5 9.2
United States of America 5.2 5.5 2.7 2.9

1 Standard International Trade Classification Sections 7 and 8.

2 Imports, but not exports, valued inclusive of insurance and freight charges.

Sources: OECD, National sources.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster what was the change in the volume of imports of finished manufactures in the latest three months; what was the average change per month for 1987; what assessment he has made of the causes of the change; and what further change he anticipates as a result of the increase in the real exchange rate for the pound sterling since the fourth quarter of 1987.

Mr. Alan Clark

The volume of imports of finished manufactures rose by 11 per cent, between the first and second quarters of 1988. The average monthly rate in 1987 was + 1 per cent.

There are of course many factors which may lead to a rise in import volume, such as a strong and growing economy, but no formal assessment of these various factors has been made by my Department.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster what is his estimate of the United Kingdom share of the volume of trade in manufacturers by the main manufacturing countries in each quarter of 1986 and 1987; what is his forecast of the share in the first two quarters of the current year; and what assessment he has made of the causes of the changes in the trend.

Mr. Alan Clark

The Department does not make such forecasts. Data for 1986 and 1987 are in the following table.

United Kingdom volume share of main manufacturing countries' exports of manufactures
(1980 prices)
United Kingdom share
Per cent.
1986
1 8.8
2 9.2
3 9.0
4 9.7
1987
1 9.6
2 9.4
3 9.6
4 9.6

The figures suggest that the volume share of the United Kingdom has remained broadly stable over this period.

Mr. Austin Mitchell

To ask the Chancellor of the Duchy of Lancaster by how much he expects investment by manufacturing industry in new plant and machinery to exceed allowances for depreciation in the current year; and if he will give comparable figures for each of the past 10 years.

Mr. Atkins

No assessment has been made for the current year. 1986 is the most recent year for which figures of net domestic fixed capital formation are available. Details for the 10 years 1977–1986 are shown in the following table:

Net domestic fixed capital formation (NDCF) in plant and machinery hy manufacturing industry 1977–1986
(at 1980 prices)
Year NDCF in plant and machinery £ million Year NDCF in plant and machinery £ million
1977 1,122 1982 -570
1978 1,297 1983 -588
1979 1,477 1984 90
1980 879 1985 763
1981 -385 1986 336

Note: Figures include assets leased to manufacturers from the financial industries.

Source: Central Statistical Office.