§ LORD RAGLAN had given Notice to ask His Majesty's Government with reference to the Rutenberg concession in Palestine, whether Mr. Rutenberg has fulfilled in every respect the prescribed conditions as to time, finance, etc.; what works have actually been constructed or sanctioned; and whether compulsion has been used to acquire any land or install any plant, etc.
§ The noble Lord said: My Lords, two years ago I ventured to draw the attention of your Lordships to the Rutenberg concession in Palestine. I do not wish to repeat anything I said then, but there is one fact that I should like to mention. Mr. Rutenberg's plans were exhibited in Jerusalem in the summer of 1921, and I examined them. I was at that time familiar with the topography of the Jordan Valley and also with the official maps. I noticed that every inaccuracy in the official maps—and there were many of them—was faithfully reproduced in Mr Rutenberg's detailed plans. The fact is that the plans were not really genuine plans at all. I tell your Lordships this because I understand that the plans on which Mr. Rutenberg is now working differ considerably from those on the strength of which he obtained his concession.
698§ THE UNDER-SECRETARY OF STATE FOR THE COLONIES (LORD ARNOLD)My Lords, the noble Lord in his Question refers to the Rutenberg concession in Palestine. I am not quite sure whether he appreciates the fact that there are two concessions in question, and not one. I would, however, in the first place explain to your Lordships that enterprises in Palestine connected with the name of Mr. Rutenberg represent the greatest practical effort that has yet been made to develop some of the natural resources of the country. The first concession was in connection with the supply of electrical energy in the district of Jaffa. It is already in force and is held by the Jaffa Electric Company to whom it was transferred by Mr. Rutenberg. The High Commissioner has recently reported that this company is conducting its operations to the satisfaction of the consumers whom it supplies and that it is correctly adhering to the terms and conditions laid down in the concession. With regard to the works which have been constructed a full report has been received from the High Commissioner; but I do not think I need trouble your Lordships with all the technical details.
Jaffa and Tel Aviv are now provided with electrical energy for private and street lighting, water supply and industrial purposes. Petach Tikuah remains to be supplied, and will be supplied, either from the existing fuel power house at Tel Aviv, or from. the hydro-electric station on the River Auja. The existing power house consists of two diesel generator sets of 1,000 h.p. capacity. About 5 kilometers of high tension underground cables have been made in Jaffa and Tel Aviv, transmiting energy to five substations fitted with transforming plant. A high tension transmission line 18 kilometers long is now being erected from the Jaffa power house to Surafend, and will serve a number of places in the southern part of the Jaffa district. The erection of a third diesel generator set will shortly be completed. I have been glad to learn that, since October, 1923, the Arab Municipality of Jaffa and private Arab consumers have been using electric energy from the Jaffa power house.
LORD RAGLANI am sorry to interrupt the noble Lord, but it is said—I do not know whether it is true or not 699 —that differences have arisen between the Municipality of Jaffa and the electric lighting company.
§ LORD ARNOLDI have no information on that point at all. There are 184 street lights in Tel Aviv and 126 in Jaffa. The number of consumers in Tel Aviv is 800 and the number in Jaffa is 260.
The position with regard to the larger Jordan concession—that is, the second concession—is somewhat different. Under the agreement with Mr. Rutenberg of September 21, 1921, a concession was to be granted to a company with an authorised capital of not less than £1,000.000, of which not less than £200,000 was to be subscribed and paid for in cash, application for the grant of the concession being made within two years from the date of the agreement. Application was duly made within the time specified and the Secretary of State has been satisfied that a company has been duly formed with the requisite authorised and paid-up capital. The actual issue of the concession has not yet been made, but I understand that it is on the point of being completed. In these circumstances, the Palestine Electric Corporation, to whom this concession is to be granted, are not yet under any obligation to carry out the terms of the concession. As a matter of fact, however, a considerable amount of progress has been made, and the High Commissioner reports that he is satisfied with what is being done. The engineering investigations into the works to be established on the River Jordan have been completed, and the plans required have been submitted to the Colonial Office, and, after reference to our consulting engineers, have been approved.
I am informed that negotiations for the acquisition of land required for the power house and other necessary works are now being conducted, and that tenders for the necessary machinery and materials have been called for. Work on the Jordan will commence as soon as the necessary land has been acquired, and it is hoped that the work will actually be commenced during the present year. Meanwhile, a good deal of work has been done in connection with subsidiary fuel power stations at Haifa and Tiberias. At Haifa, land for the power house and for the future transmission station has been acquired. 700 Plans for the power house are being prepared, and the tracing of the distribution net made. Orders for the steel frame construction for the power house have been placed in this country, and orders for machinery are also being placed in this country. The Haifa power house is expected to commence the supply of energy early next year. Land for the Tiberias power house has been acquired; machinery and materials required are already in Palestine, and an agreement has been arrived at with the municipality for the supply of energy, which is expected to be available towards the end of this year.
Plans for the Jerusalem installation have been prepared as far back as 1921; but the actual execution of the works has been delayed owing to complications which have arisen in connection with the claim of another party to a pre-war concession for a similar purpose. The Palestine Electrical Corporation have been in no way responsible for any delay in this connection. I am informed that the cost of the first stage of the works I have described is estimated at £750,000, of which about £300,000 represents the cost of machinery and materials required to be imported into Palestine. It is hoped that by far the greater part of these orders will be placed in this country. So far as I am aware, no compulsory powers have been exercised in connection either with the acquisition of land or installation of plant for any of the schemes in hand.
§ LORD DANESFORTMay I ask the noble Lord whether there is any time limit fixed by the concession within which works are to be begun and completed? I understand from the noble Lord's statement that no works have actually been completed which would enable light and power to be introduced, but that certain preliminary steps have been taken. Perhaps the noble Lord can tell us whether there is any time limit within which these works will be completed.
§ LORD ARNOLDI would not like to give a precise reply to that without an opportunity of referring to my Department. If my noble friend will be good enough to put down another Question I shall be glad to reply to it.