Foreign Investment Report: Europe's Backing Britain, Government Must Act Accordingly - Bruce

12.00.00am UTC (GMT +0000) Thu 11th Dec 2003

Commenting on the publication by the ONS of 'Foreign direct investment for 2002' Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "The collapse in investment from the Americas shows that, for all the Prime Minister's very close support for President Bush, business sentiment in America has shown a sharp reduction in investment in the UK economy."

"Britain's long-term interests rest heavily on good trade and political relations. These figures reinforce the importance of European investment in the medium to long-term. With domestic investment low and foreign investment unpredictable we have continuing under-investment problems which could seriously affect British productivity and competitiveness."

"What is clear is that our economic relationship with Europe is more important and consistent than with the US and the Government must open its eyes to that fact and act accordingly."