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Manufacturing Industries

Volume 498: debated on Monday 26 October 2009

To ask the Minister of State, Department for Business, Innovation and Skills what assessment his Department has made of the implications for manufacturing industry in the UK of levels of foreign ownership of that industry; and what discussions he has had with trade union representatives on the subject. (293885)

The UK economy benefits very substantially from its openness to Foreign Direct Investment (FDI). Research was carried out for UKTI by Professor Richard Harris of the University of Glasgow in 2008/09 looking at the effects of FDI on both services and manufacturing, focusing specifically on the effects of mergers and acquisitions, but also looking at other types of FDI. The full final report is now available from the UKTI Economics and Evaluation team, and is due to be published on the UKTI website in November, under the title “The Effect of Foreign Mergers and Acquisitions on UK Productivity and Employment”.

We have regular discussions with a range of stakeholders, including trade unions, about manufacturing, including on topics such as foreign investment.