§ 2.35 p.m.
LORD TEYNHAMMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they have yet concluded the negotiations with Messrs. C. H. Bailey (Malta Ltd.) for the reconstruction of the Malta Dockyards.]
§ THE MINISTER OF STATE FOR COLONIAL AFFAIRS (THE EARL OF PERTH)My Lords, agreement has now been reached between Her Majesty's Government and Bailey (Malta) Limited on the financing of the first and main phase of a revised and enlarged development plan for Malta Dockyard. The first phase of the plan, which the company hope to complete during 1963, includes provision for a dock which will take tankers up to 85,000 tons deadweight, and includes all the major works of conversion except the enlargement of No. 2 Dock.
The preparatory clearing and diversion of services for the main dock alterations have been nearly completed and all the contract documents and plans for these main works are now finished, so that the company can now go to tender for the conversion of Nos. 4 and 5 Docks, extension of boiler wharf and a tank cleaning farm and jetty. Towards the scheme for the first phase of this overall revised plan, which the company estimates will cost £8,060,000, Her Majesty's Government will contribute by way of loans £7¼ million. Her Majesty's Government have been able to make this offer because of the receipt of a satisfactory assurance from the company regarding the use of their own 722 resources to meet the balance of the cost of Phase I of the plan.
LORD TEYNHAMMy Lords, in thanking my noble friend for that reply, I should like to say how pleased I am that a satisfactory settlement has at last been made which I think will go a long way to improve the economy and the unemployment position in the island.
§ LORD OGMOREMy Lords, may I, too, say how pleased I am that this longstanding issue has been settled. May I ask the noble Earl whether Her Majesty's Government have any directors upon the board of the company?
§ THE EARL OF PERTHMy Lords, I am glad that both noble Lords have made the comment they have on this arrangement, because it is of great importance for the future development of Malta and is most satisfactory. The position on directors is this. There have been since the end of last year three new appointments to the board, two at the request of Her Majesty's Government, but also at the invitation of the company. So it would not be quite true to say that they are Government directors, as such; they joined, in a sense, at the mutual desire of both parties. I feel confident that with the strengthened board the company will succeed in prospering.
§ THE EARL OF LUCANMy Lords, could the noble Earl say, in view of this development, what the company expect to be able to contribute to the Malta employment situation: in other words, how many men do they expect to be able to employ as a result of this large capital expenditure?
§ THE EARL OF PERTHMy Lords, as your Lordships know, this is a conversion from an Admiralty Dockyard to a commercial one and necessarily Admiralty work is apt to employ more people than commercial work. But it is hoped that by making these docks into the equal of any in the Mediterranean, and able to take ships up to 85,000 tons, there will be better opportunity of maintaining a high level of employment on the dockyard than might otherwise have been the case. I cannot give any specific figure, but at the present time they are employing about 5,700 men, which I feel is a satisfactory number.
§ LORD LATHAMMy Lords, can the noble Earl say whether there is anyone representing labour and the trade unions?
§ THE EARL OF PERTHI do not think so, my Lords. This is a private company, which is run like any other private company. I do not know, but I should not think there is any representative of labour, any more than there is a representative of the Government.
§ LORD LATHAMMy Lords, surely the noble Earl would agree that it is a euphemism to say that this is a private company when the Government are going to advance £7 million.
§ THE EARL OF PERTHNo, my Lords, I should not accept that. This is a private company, privately run and Her Majesty's Government are advancing on loan for the general benefit and development of the island.
§ LORD LATHAMMy Lords, are the Government to have any security; and, if so, what?
§ THE EARL OF PERTHMy Lords, certainly there is security. If you make a loan you do have security. I have not the exact terms in front of me, but they are all contained in the financial agreement.
LORD HAWKEMy Lords, do Her Majesty's Government expect that this yard will be able to compete for contracts with the Italian yards and the new Scaramanga yard in Greece?
§ THE EARL OF PERTHYes, my Lords; we all know how skilful the Maltese are as ship-repairers and shipbuilders, and on this basis I have every reason to think that they will be able to compete, and more, with any foreign yards.
VISCOUNT ALEXANDER OF HILLS-BOROUGHMy Lords, before the questions and answers are finally completed, may I ask the noble Earl whether he is aware that some months ago I expressed my considerable confidence in the ability of the firm of Bailey's to undertake this work in Malta? I think they have made a good start if they are employing 5,000, but that leaves a good deal yet to be desired 724 in dealing with the employable population in Malta, and we have had as yet no information as to how much naval work we can do there. But perhaps that can be postponed until we talk about the Navy Estimates in July.
§ THE EARL OF PERTHMy Lords, I am grateful for what the noble Viscount has said on the question of Bailey's. As I say, I feel confident that with the strengthened board they will be able to compete successfully. I would recall that we are doing a great deal outside the dockyard to provide new employment and generally to encourage industry to go to Malta; because with the change in policy—that is, in converting the dockyard from the Admiralty—one must always recognise that there is a need to embark on other things. I should not want it to be thought that we are working on the dockyard only, because we are working on other industries as well.