India Trip

Meeting: 
MQT on 2007-12-12
Session date: 
December 12, 2007
Reference: 
2007/3122
Question By: 
Peter Hulme Cross
Organisation: 
One London Party
Asked Of: 
The Mayor

Question

Please can the Mayor provide the calculations on which he based his assertion that six new jobs in London would pay for the recent trip to India.

Answer

Answer for India Trip

Answer for India Trip

Answered By: 
The Mayor

This figure follows the DTZ Consulting's analysis of the Office of National Statistics annual business inquiry data published in 2006 which first appeared in the Think London publication, London Focus, '£52 billion, the value of foreign direct investment to London'. The work showed that £115,400 is the gross value added per full-time equivalent employee in foreign-owned firms operating in London. Simply, that is how much economic value each job created by an overseas company adds to the London economy per year. The £720,000 cost of the trip is therefore equivalent to 6.4 jobs, rounded to the nearest whole number, this is 6.

Basically, no foreign firm, given land prices and costs in London, comes here to create a job which is not high value. Therefore, every inward investment scheme is actually a high value one.