A TORY life peer who works as a minister in Boris Johnson’s government has claimed that UK firms perform better under foreign ownership.
Gerry Grimstone – the former deputy chairman of Barclays – claimed British firms that have been bought out by foreign groups are “more productive”, hire more staff, and export more.
Grimstone told BBC Radio 4’s Today programme: “People buy companies to make them successful, to make them expand.
“All our research shows that overseas invested companies in the UK are more productive … they generate more jobs than UK companies, they generate more intellectual property and they export more.”
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He added: “Overseas investment is vital for the UK’s economic performance.
“I don’t think we should be fearing overseas investment – we should be grasping it because of the economic impact it has on our country.”
Grimstone was made life peer at the same time as he was appointed to be a minister in government. He officially joined the Lords three weeks later.
It is not the first time Johnson has elevated an unelected person to the Lords in order to make them a minister.
The Prime Minister was widely criticised when he did so with Nicky Morgan (below) in order to allow her to remain in Government despite not being an MP.
The hereditary peer James Bethell is also a member of the Tory government, currently serving as a health minister. The unelected ally of Matt Hancock came under heavy fire for his connections to the disgraced former health secretary when news of his affair first broke.
Grimstone’s comments follow the announcement that the Government will hold an international investment summit in October to attract overseas investment in the UK.
On worries over British firms falling into foreign hands, he said: “It would be a sad day for this country if we put the shutters up so that we weren’t a mercantile entrepreneurial country.”
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It comes amid a flurry of overseas deals for UK-listed companies, with retail giant Morrisons at the centre of a bidding war and takeover tussles also ongoing for defence contractors Meggitt and Ultra.
Pensions trustees of Morrisons have warned the takeover by either of its two leading suitors could “materially weaken” the security of the pension schemes.
The Morrisons’ board said last week it agreed a £7 billion takeover by US private equity firm Clayton, Dubilier & Rice (CD&R).
The offer usurped a previously agreed £6.7 billion deal with a consortium led by private equity rival Fortress.
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