§ Lord Kennetasked Her Majesty's Government:
What percentage of the profits of foreign-owned manufacturing industry in the United Kingdom is:
and how this compares with the practice of foreign-owned manufacturing industry elsewhere, including that which is British-owned.
- (a) reinvested in the United Kingdom
- (b) repatriated away from the United Kingdom,
The Earl of CaithnessThe available information relates to net profits (the sum of profits offset by any losses) and dividends paid in a calendar year. Figures relating solely to enterprises making profits are not readily available. The level of dividend remittances (i.e. dividends paid to the overseas parent) in a given year30WA may reflect factors other than current profits—e.g. profits in the previous year, timing of accounting years and the level of taxation. Although percentages can be calculated from the figures given, it is considered more appropriate to give the separate profit and dividend figures. The information is as follows.
£ million 1989 1990 1991 UK manufacturing affiliates1 of foreign companies Profits (net of losses) 3,857 2,561 1,481 Dividend remittances to the overseas parents 3,016 2,941 3,031 Foreign manufacturing affiliates1 of UK companies Profits (net of losses) 7,477 7,130 6,362 Dividend remittances to UK parents 3,765 2,576 4,351 Source: Central Statistical Office; Business Monitor MA4 Overseas Transactions 1991.
1 Branches, subsidiaries and associated companies.