§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what effect the takeover of British industry by foreign firms has on the exchange rate.
§ Mr. NelsonThe effect is uncertain. The purchase of British assets by foreign firms will tend to raise sterling. Similarly, when United Kingdom firms acquire overseas assets, this will tend to lower the exchange rate. In the 10 years to 1992, the most recent complete year for which data are available, direct investment overseas by United Kingdom residents has been £122 billion, while direct investment in the United Kingdom by overseas residents has been £91 billion.