DEFENCE (CALCIUM CARBIDE). (Hansard, 16 February 1938)

§ Mr. Sexton

I wish to raise a matter concerning the location of factories for manufacturing calcium carbide. Calcium carbide is a very necessary commodity to this country, both in peace time and in war time. We have lagged far behind all other countries in the manufacture of this commodity, and while we have been lagging behind, other countries have been working. Germany, Japan and Italy, three significant nations, have been turning their attention lately to the manufacture of calcium carbide, because calcium carbide is the basis for two very important basic products.

2029 The first of these is calcium cyanamide, which in itself is the basis of nitric acid, which means high explosives. Not only is calcium cyanamide used for the production of nitric acid for war purposes, but also for the production of nitrolim, which is an important fertiliser, so that in peace time calcium carbide factories are of great importance. The second basic product is acetylene, which nowadays is very prominent in the welding process by oxy-acetylene gas. That also can be used in war time and in peace time, since I am informed that aeroplane wings must be welded by oxy-acetylene gas, and aeroplanes can be used either in peace or in war.

The annual world production of this commodity runs to between 2,000,000 and 3,000,000 tons, and this country uses approximately 60,000 tons. Not one ounce of that is made in this country, but the major part, amounting to about 54 per cent., is imported from Norway. Two elements that go to make calcium carbide ore are limestone and coal. Besides these elements we require power, and the power has to be electricity, because carbide is made by a fusion of coal and limestone in an electrical furnace. Electricity can be obtained in one of two ways—by steam, which is thermal electricity, or by water, which is hydro electricity.

In setting up these factories, we must consider the source of the electricity, the speed of construction and the vulnerability to air attack. While electricity can, as I say, be made from steam, the speed of construction, which is vital, depends on whether we use thermal electricity or hydro electricity. If thermal electricity, made from coal, is used, the plant can be constructed and producing carbide in about one year. If hydro electricity is used, the plant can be constructed and producing carbide in about three years. If we want to have these factories manufacturing quickly, and I believe we do, we must get thermal electricity.

I come now to the point where I say the National Government, through the Minister for the Co-ordination of Defence, have broken faith with South-West Durham. On 3rd February, 1937, I asked the Minister whether South-West Durham would be kept in mind when the sub-committee of the Cabinet was considering the allocation of factories. The answer was as follows: 2030 The supply of calcium carbide is under consideration and I regret that I can give no information at present. The hon. Member may rest assured that the claims of Southwest Durham, together with those of other areas, will receive full consideration."—[OFFICIAL REPORT, 3rd February, 1937; col. 1598, Vol. 319.] The reason why I am so earnest about South-West Durham is because it is the home of the two elements which go to make up calcium carbide. As in South Wales, so in South-West Durham, we have abundant coal of varying kinds and the finest limestone in the country, containing 98 per cent. of calcium carbonate. They are close together; the transport cost would be practically nil and, more important, we have 10,900 fewer miners in work now than there were 20 years ago. Those men are on the spot. In the limestone quarries there are 700 fewer men at work now than there were 20 years ago—they are also on the spot. I contend that South-West Durham ought to have been considered. It has not been considered. The Minister in his reply to a further question gave the names of the authorities who had been consulted. On 24th November last, the Minister informed my hon. Friend the Member for Maryhill (Mr. J. J. Davidson) that the local authorities invited by the Sub-Committee to give evidence were the Borough of Inverness, Fort William Town Council, the Borough of Merthyr Tydfil, and the Ness Fishery Board, leaving out entirely South-West Durham, which he had pledged the Government to take into consideration on this matter.

I have a letter here from the South-West Durham Development Board, which has tried time and again to get something done in that distressed area. They told me, on 14th December last: In reply to your letter of 8th December, this Board was not invited to give evidence to the Government Committee dealing with the manufacture of calcium carbide. I know that the Minister for the Coordination of Defence has said repeatedly that the Special Areas have received Government orders. In that same letter they say: In reply to your second inquiry, I have no knowledge of orders given out by Government Departments to Special Areas being granted to South-West Durham. The Government have come to the decision to put these two plants, one in South Wales—I am very glad of that—and the other in the north of Scotland. 2031 In the one case they use thermal electricity and in the north of Scotland hydro-electricity. We in South-West Durham can provide all that South Wales can provide and over and above that I repeat that we have the experienced quarry-men and miners kicking their heels who want decent work and cannot get it. I say definitely that the right hon. Gentleman, on behalf of the Government, has broken faith with me, as I have proved from his answers. If you put that factory in the north of Scotland, you will have neither the material nor the men there. The same argument that was used against the aerodrome being placed at White Waltham can be used against putting this factory in the north of Scotland, and more extensively so. The same argument that could be used for putting a calcium carbide factory in South Wales can be used for putting one in South-West Durham. There we have the men, the villages, the houses, the streets, the churches, and everything ready, whereas in the north of Scotland you will have all these things to supply. I here and now protest bitterly against the breach of faith which has been shown to South-West Durham.

§ The Minister for the Co-ordination of Defence (Sir Thomas Inskip)

The hon. Gentleman was good enough to inform me of his intention to raise what he described as the matter of the proposed location of calcium carbide factories, one in the North of Scotland and the other in South Wales. I gather from him that he now approves at any rate of the proposed location of a calcium carbide factory in South Wales. I am not sure whether he gives his approval also to the establishment of a factory in the North of Scotland, but although his letter contained no reference at all to South-West Durham, I now gather that the burden of his complaint is that South-West Durham has not been selected by any persons prepared to manufacture calcium carbide for the establishment of an industry. The hon. Gentleman is, I think, under a misapprehension as to the part that the Government are playing in the establishment of these factories. Unless I misheard him I understood him to say that the Government have decided to establish factories in North Scotland and South Wales. The Government have not 2032 decided anything of the sort. What the Government have done is to say that they approve, so far as their approval is necessary, the establishment by a company of factories in South Wales and North Scotland. This is a scheme which has been put forward in its entirety by one concern, the British Oxygen Company, and not one penny of Government money will go into the establishment of these factories. I am sure hon. Members with all their zeal for the promotion of the manufacture of necessary commodities will agree with me in saying that the more that can be done without the expenditure of money the better for the country, for hon. Members will, I hope, soon wake up to the fact that there is not a bottomless purse into which the Government can dip and that it is better if they can find the same result can be achieved without the expenditure of any Government money.

So far as South-West Durham is con-concerned, I am not aware that any real practicable proposal to put up money for the establishment of such an industry in South-West Durham has ever come forward. If the hon. Gentleman is prepared, or knows anybody who is prepared, to establish such a factory in South-West Durham no doubt the location is open to them to-day; and the Government would welcome such a factory. I gather, however, that the hon. Gentleman does not know the name of any company or person who is prepared to establish an industry in that part of the country. I entirely agree with him that it would be a most admirable form of employment. It would be useful, no doubt, to the country if such a factory were established. I think, however, that the real burden of the hon. Gentleman's complaint is to charge me with a breach of faith. I think I can quite lightly bear a burden of that sort, for, indeed, there is no foundation for it whatever. The hon. Member asked me, in February, 1937: whether the question of the establishment of a factory for the manufacture of calcium carbide in South-West Durham will be kept in mind, considering that an abundance of first-class limestone and coal is in close proximity, while electrical power is at hand and unemployment is rife among the quarry-men and miners of that district. That was some three months before the committee was set up to inquire into the schemes which might be submitted to 2033 them. The terms of reference were stated in the House. The committee advertised in the Press inviting schemes to be submitted to them. I gave the fullest publicity to the establishment of the committee. Nobody came forward with any practical scheme in which money was put up for the establishment in South-West Durham of such an industry. If any proposal of that sort had come, of course the committee would have had the opportunity of considering it and recommending it, and I have no doubt that the 2034 Government, in those circumstances, would have given the same blessing to a scheme for South-West Durham as they have given to the scheme, which is a practical one, in South Wales and in the North of Scotland.