HL Deb 14 October 1993 vol 549 cc29-30WA
Lord Kennet

asked Her Majesty's Government:

What percentage of the profits of foreign-owned manufacturing industry in the United Kingdom is:

  1. (a) reinvested in the United Kingdom
  2. (b) repatriated away from the United Kingdom,
and how this compares with the practice of foreign-owned manufacturing industry elsewhere, including that which is British-owned.

The Earl of Caithness

The 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 year 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.