DEVELOPMENT OF MALTA (Hansard, 12 December 1960)

§ LORD OGMORE
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
[The Question was as follows:

§ THE MINISTER OF STATE FOR COLONIAL AFFAIRS (THE EARL OF PERTH)
My Lords, a good start has been made on the implementation of the five-year Development Plan for 1959–64, which envisages a total programme of over £32 million capital investment. The programme of industrial development includes the modernisation of the port (and the now deep-water quay and silo will come into operation next year) and extension of the power station: the first extension has already been completed and the second is being planned. Furthermore, the expansion of industrial capacity is going ahead at an encouraging pace. The Government are very grateful for the help they are receiving in this from the Aids to Industry Board, under the chairmanship of Sir George Dowty.
Inducements to the establishment of new industry, which compare favourably with those in other countries are producing results. Already capital and fiscal assistance has been approved for the expansion of five existing firms and one hotel, and for the establishment of nine new firms and three new hotels. The 266 new industries range from car assembly to textiles, from light engineering to the propagation of flower cuttings. Work is in hand on all the expansions and on five of the new projects, and many other applications are being studied. The total capital investment in the new projects and extensions so far approved is expected to be nearly £3 million—towards which the Government's assistance is over £¾ million—and the estimated prospective employment is between two and three thousand people.
As my right honourable friend said in another place last Thursday, the slow progress with the conversion of the Dockyard for commercial use is a cause of concern and the Government hope to be in a position to make a statement before the Recess.

§ LORD OGMORE
My Lords, while thanking the noble Earl for that statement and realising the difficulties of these matters in a small island, may I ask him, first of all, what plans he is making for the development of the tourist trade on a big scale; and, secondly, whether he is aware that there is some concern in Malta at the pace of development?

§ THE EARL OF PERTH
My Lords, in answer to the first part of the Question, as I said in my general reply, one new hotel is being extended, and plans have been approved for three new hotels. That. plus an energetic advertising programme drawing attention to Malta as a tourist centre is, I think, a good start in connection with that matter. As regards the anxiety about the pace of the general programme for economic: development, I think that, as I have shown in my earlier Answer, there really is little ground for anxiety—indeed, the progress up to date is very satisfactory.

§ LORD SHEPHERD
My Lords, am I to understand that in the five-year programme the total capital to be invested will be approximately £32 million, and that up to the present only £3 million has been invested? Cart the noble Earl say when the bigger flow of capital will arrive in Malta?

§ THE EARL OF PERTH
No, my Lords. The noble Lord is right in that the programme is expected to be £32 million, but certainly more than £3 million has already been expended. What I said in my answer was that on the 267 new projects the capital investment was likely to be £3 million, of which the Government have supplied about £750,000. But that is a different figure. I am afraid I have not in front of me the total of investment that has already been made out of the capital programme, but it is certainly more than £3 million.

LORD GIFFORD
My Lords, can the noble Earl say whether all or any of the hotels are to be down by the seashore, because Malta is completely lacking in proper holiday hotels?

§ THE EARL OF PERTH
My Lords, if my memory is right, the answer to that is, Yes; one if not two will be. But if I am wrong about that, I will write to the noble Lord.

§ LORD OGMORE
My Lords, may I ask the noble Earl whether he will look into this question of the tourist trade himself; because as the noble Lord, Lord Gifford, has said, there is this problem of hotels? May I ask him whether it is possible to have the chalet type of hotel in Malta, catering for the not quite so wealthy type of tourist; and whether he can make arrangements with the charter air companies, and so on, to provide cheap flights to Malta?

§ THE EARL OF PERTH
My Lords, I have looked before, and I certainly will continue to look, into the question of the hotels and tourist trade. I know that one scheme was examined in regard to the chalet type of hotel. I do not think that was furthered, and it certainly would not be for me to try to influence the hotelier against his better judgment on things of this sort. I appreciate the importance of being able to have cheap flights if one wants to encourage the tourist industry.