Industrial Development

HC Deb 31 January 1961 vol 633 cc772-4

36. Mr. Hector Hughes

asked the Secretary of State for the Colonies what are the industrial developments, actual and prospective, of Malta, with particular reference to the team which has investigated the prospective markets in the Middle East for Maltese manufacturers, indicating the nature of these manufactures; and if he will make a statement.

Mr. H. Fraser

As the answer is rather long and detailed, I shall, with permission, circulate it in the OFFICIAL REPORT.

Mr. Hughes

Does the hon. Gentleman realise that the Government undertook to develop industry in Malta? The team mentioned in the Question undertook a solution of the relevant problems. It has failed to do so. That is bad statesmanship, bad for Malta and for the British Commonwealth.

Mr. Fraser

If the hon. and learned Gentleman waits to read the Report, I think that he will find that the amount of money which is being invested is fairly satisfactory.

Following is the Answer:

Industrial development in Malta is proceeding along the general lines laid down in the Development Plan for the Maltese Islands 1959–64, a copy of which is available in the Library. Water supplies have been increased by the exploitation of underground sources from an estimated annual yield of 3,081 million gallons in 1958 to 3,746 million gallons in 1960. As further exploitation of these sources would be uneconomical, plans are being made for the construction of a distillation plant capable of producing 1 million gallons of potable water daily from the sea. It is aimed to bring the plant into commission by 1964–65. An extension to the generating plant of the power station was brought into commission in 1960 doubling firm capacity to 20,000 kilowatts. Work on another power station, which is planned to be completed in 1964–65, and which will provide additional firm capacity of 17,500 kilowatts, is expected to start this year. The new quay in the Port of Valletta will be completed this year, providing 1,850 feet of berthing accommodation. A new silo in the harbour will also be brought into service this year. It will have a capacity of 12,500 tons. Work on the extension and improvement of the telephone service continues. By 1963 there will he 13,200 lines in service compared with 7.800 in 1958, and the service will be completely automatic. Satisfactory progress is being made with the programme for general and technical education, improvement to roads, extension of sewerage. and assistance to the agricultural industry. Approximately £2 million has been allocated for the construction of factories for rent and so far three have been completed and occupied. It is hoped to complete twelve more during the coming financial year. £3.4 million has been provided for grants and loans to new industries and new hotels and, in addition, there are other forms of aid for new industries such as import duty exemptions and income tax holiday. So far aid totalling £824,951 has been approved for sixteen industrial projects, excluding the Dockyard, and five hotels. The new projects include the production of woollen knitwear, marine and domestic paints, spring mattresses, pork products, textiles, toilet rolls, car assembly, flower cuttings, iron rods and bars, industrial plastics and rubber seals, detergents, watches and clocks, gold bonded diodes and light engineering products. It is expected that the above projects will eventually provide employment for about 3.000 workers. Production has started in seven of them. providing additional employment for 200. This is to be increased to 1,020. One factory for the assembly of cars, one for the production of iron rods and bars and another for the manufacture of rubber seals for industrial purposes are due to start production in the next three months. These three will eventually employ over 400 workers between them. The marketing development report, which is intended to guide both industrialists and the Government of Malta, has recently been received and is being made available immediately to industrialists far study. It has been commissioned by the Aids to Industry Board in Malta and the Malta Industrial Development Board sitting in London. These Boards will study the report and in reaching their conclusions they will wish to take the industrialists' views into account as well. Until this has been done it is not possible to forecast what action will be taken on the report.