§ Mr. Galley
asked the Chancellor of the Exchequer what assessment he has made of the new employment generated in the United Kingdom as a result of outward investment since the abolition of exchange controls.
§ Mr. Ian Stewart
[pursuant to his reply, 4 November 1986]: Employment in the United Kingdom depends on real wages and profitability in the United Kingdom. Since the abolition of exchange controls net overseas assets have increased more than sixfold to £80½ billion and are generating income of over £4 billion a year for the benefit of the United Kingdom economy, and direct investment overseas by British companies is often designed to provide suppliers' orders and distribution for goods manufactured in the United Kingdom. It is not possible to quantify the impact of these factors on employment.