§ 20. Mr. Beresford Craddockasked the Secretary of State for the Colonies the position regarding the establishment of a cement industry in Uganda; the original estimated cost of establishing the industry; the present estimated cost; and how it compares with the capital employed in establishing the cement industry in Northern Rhodesia and in Jamaica.
§ Mr. LytteltonThe cement factory at Tororo, which is expected at first to produce 55,000 tons a year, started work last month. In 1948 the cost of establishing the industry was estimated at £1,155,250; the most recent estimate is £2,451,000. The cement industries in Northern Rhodesia and Jamaica cost £1,335,000 and £995,000, respectively.
§ Mr. CraddockIs there any explanation for this extraordinary difference between the original estimate and the actuality?
§ Mr. LytteltonThere are three main differences. Firstly, it was estimated that a standard cement works would be suitable, but that was found not to be so; secondly, the devaluation of sterling in relation to the Italian lira, by which the plant was purchased; and thirdly, the general rise in costs of labour, transport and machinery during the period.
§ Mr. Dodds-ParkerWill my right hon. Friend say what the delivery price of cement is compared with imported cement in Uganda?
§ Mr. LytteltonI think I had better see that question on the Order Paper.