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Japan (Direct Investment)

Volume 33: debated on Tuesday 7 December 1982

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asked the Secretary of State for Industry (1) if he will initiate an inquiry into the reasons why the percentage investment from Japan to the European Economic Community which came to the United Kingdom has fallen since 1 January 1973;(2) what was the percentage of Japanese direct investment in the European Economic Community which took place in the United Kingdom in 1981; and when the percentage of European Economic Community direct investment by Japan in the United Kingdom was last at its current percentage level.

[pursuant to his reply, 2 December 1982, c. 244.]: The total number of manufacturing projects undertaken by Japanese companies anywhere in Europe in any one year is small, and any change in the number of these projects can cause large changes in the percentage received by the United Kingdom, as the following table shows. Overall, Britain has done better than any other EC member State in attracting Japanese investment of all kinds. In 1981 the United Kingdom received 12 per cent. of Japanese direct investment in the European Community. The invest in Britain bureau and inward investment staff in our diplomatic service posts in Japan are always in close touch with a number of Japanese companies about locating their manufacturing projects in the United Kingdom.

Japanese direct investment overseas*
United States $ million
United KingdomECWorldUnited Kingdom as per cent of:
ECWorld
19733524381,90480·418·5
19743824832,01279·119·0
1975421401,76330·02·4
1976292031,99114·31·5
1977422001,64521·02·6
1978251492,37116·81·1
1979382712,89814·01·3
19801112622,38542·44·7
1981685684,89412·01·4
Total
1975–813551,79317,94719·82·0
1973–811,0892,71421,86340·15·0

* Direct investment covers only purchases net of disposals of share capital and long term loans by Japanese concerns in their overseas subsidiaries, associates and branches. The figures do not include unremitted profits, short-term loans or trade credit.

United Kingdom and eight Continental members up to 1980. Greece included from 1981 onwards.

Source: Japan Balance of Payments Monthly.

asked the Secretary of State for Industry what is the latest total of people employed by Japanese controlled manufacturing enterprises in the United Kingdom; and what percentage of the United Kingdom employment in manufacturing industry this total represents.

[pursuant to his reply, 2 December 1982, c. 244]: The latest published figures available are for 1979, when Japanese controlled manufacturing enterprises in the United Kingdom employed 1,700 people, 0·025 per cent. of all private and public sector employees in United Kingdom manufacturing industry. Currently, Japanese controlled manufacturing companies employ about 3,300 people; in addition about 1,600 people are employed in manufacturing enterprises in which Japanese companies have a 50 per cent. or substantial minority interest.