§ Sir Michael MarshallTo ask the President of the Board of Trade what recent studies his Department has(a) commissioned and (b) evaluated to assess the current levels of British private investment overseas; what assessment he has made of its impact on the United Kingdom economy; and if he will make a statement. [12569]
§ Mr. LangFollowing a commitment given in the first Competitiveness White Paper (Cm 2563) my Department commissioned, in 1994, KPMG to undertake a study of UK outward investment with the remit to consider what further support the Government might offer overseas investors. The results of this study were published in May 1996.
My Department constantly monitors the levels of British overseas investment and, from time to time, evaluates relevant studies on this subject.
The Government believe that domestic firms and their employees gain from the freedom available to business to invest overseas. Direct investment can be an effective means of delivering goods and services to particular markets and in this way complements direct exports. Overall, the UK stands to benefit if firms are allowed to direct their resources to their most profitable use. The Government seek international agreement to liberalise regimes governing outward and inward foreign direct investment.