§ Mr. ChaytorTo ask the Secretary of State for Trade and Industry if he will provide data on foreign direct investment in the United Kingdom for each of the last 20 years, broken down into,(a) the stocks and flows of inward investment for each year, (b) the percentage 90W of foreign direct investment in mergers and acquisitions for each year, (c) the percentage of the labour force employed in foreign direct investment for each year, (d) the contribution of foreign direct investment to United Kingdom tax revenues for each year, (e) the total subsidies given to foreign investors for each year and (f) the total royalties paid to abroad by the United Kingdom on foreign direct investment for each year. [71561]
§ Mr. WillsAvailable information is given in the tables. No official data are collected for tax revenues from foreign enterprises or total royalties paid to abroad by the UK on FDI.
(a) Table 1 shows the stocks and flows of foreign direct investment into the UK each year from 1978 until 1997, the latest year available. FDI covers not only the acquisition of fixed assets, stock building and stock appreciation but all other financial transactions, such as additions to, or payments of, working capital, other loans and credit, and acquisitions of securities. The figures cover transactions where the investor's purpose is to have an effective voice in the company, taken to be equivalent to a holding of 20 per cent. or more (10 per cent. in the 1997 figures). Stock figures are recorded at the end of the stated period. They are not cumulative totals of investment flows, but also take account of goodwill write-offs, revaluation of assets and exchange rate fluctuations.
Table 1: Foreign direct investment in the UK £ million Year Stocks Flows 1978 11,098 1,261 1979 — 1,740 1980 — 2,541 1981 16,962 980 1982 — 1,137 1983 — 2,063 1984 38,484 —245 1985 — 4,417 1986 — 5,645 1987 58,430 8,986 1988 71,652 11,562 1989 93,554 17,405 1990 105,760 17,155 1991 111,373 8,418 1992 114,409 8,816 1993 121,005 9,871 1994 121,336 6,046 1995 128,885 12,654 1996 134,654 15,662 1997 156,969 21,751 Note:
Figures for stocks of FDI were collected only triennially before 1987.
Source:
Office for National Statistics
(b) Table 2 shows the percentage of FDI flows into the UK represented by mergers and acquisitions of companies. The value of acquisitions is the sum of the value of transactions where the foreign business takes their percentage share of the relevant UK target to over 50 per cent. Figures are available only from 1986.
91W
Table 2: Percentage of FDI represented by acquisitions and mergers Year Percentage 1986 21 1987 26 1988 23 1989 62 1990 58 1991 51 1992 38 1993 42 1994 74 1995 88 1996 41 1997 53 Source:
Office for National Statistics
(c) Figures for the percentage of the labour force employed in foreign enterprises are available only for the manufacturing sector. This sector represents between 20 and 25 per cent. of total employees over the years shown. Comparable figures are not available for earlier years. In Table 3 foreign enterprises are defined as those controlled by companies incorporated overseas; this is different from the definition used in Table 1, where figures include all transactions where the investor's purpose is to have an effective voice in the company, taken to be equivalent to a holding of 20 per cent. or more.
Table 3: Percentage of employees in the manufacturing industry employed by foreign enterprises Year Percentage 1983 14.5 1984 14.8 1985 14.0 1986 13.0 1987 13.4 1988 13.1 1989 14.9 1990 16.1 1991 17.2 1992 18.1 1993 17.9 1994 18.6 1995 17.2 Source:
Office for National Statistics
(e) Table 4 shows offers of grant accepted by foreign owned businesses in GB under Regional Selective Assistance (RSA), the DTI's main investment grant scheme, in each of the last ten years. Figures for earlier years are not available:
Table 4 £ million Year Grant 1989 141 1990 166 1991 79 1992 85 1993 157 1994 155 1995 133 1996 170 1997 364 1998 167 Source:
DTI