Japanese Inward Investment

HC Deb 09 March 1994 vol 239 c250W

Mr. Alfred Morris

To ask the President of the Board of Trade what assessment his Department has made of the levels of Japanese inward investment for 1995, 1996 and 1997; and if he will make a statement.

Mr. Sainsbury

Future levels of inward investment are difficult to assess, however it is widely accepted that the current level of interest from Japanese investors is unlikely to increase until the economic situation in Japan improves.

The warm welcome which this Government and country have for long given to investment from Japan remains as positive as ever. It is therefore encouraging to note that, even though the level of investment from Japan has decreased in recent years, the United Kingdom has maintained its position as the preferred location for Japanese companies with over 41 per cent.—by value to March 1993¹—of the total Japanese investment in the EC. Future investment from Japan is likely to come from small and medium sized companies, expansions by existing investors and research and development investment, including local research and development departments being set up by manufacturers already in Europe. ¹Source: Japanese Ministry of Finance.