PETROL FROM COAL

Hokitika Guardian, 19 July 1933, Page 5

PETROL FROM COAL

A NEW INDUSTRY

GOVERNMENT GIVES GUARANTEE

(Per British Official Wireless.)

RUGBY, July 17

Mr Ramsay MacDonald announced in fine Houqe of Commons that legislation will be introduced in the autumn session to give effect to a proposal which the Government believed would ensure an immediate advance in the manufacture of home-produced motor spirit. The proposal would take the form of a guaranteed preference cf fourpencc per gallon in respect of light hydro-car bon oils manufactured in this country from indigenous coal, shale or peat. This guarantee would be for ten years from April Ist next.. This would be subject to- an -arrangement- to vary the period.of the-,guar-antee regarding the actual preference, namely, the- difference between the customs duty, and the excise, if any excise duty should be imposed. .If the, preference remained at the present level, eightpence per. gallon, the period of the guarantee would be four and a half years. If the preference were reduced to fourpence per gallon, the period of the guarantee would be nine years, and any intermediate rate of preference would vary the period of the guarantee proportionately. Mr MacDonald said that it was estimated that 7COO men would be direct, ly employed, and a slightly less, number indirectly. Under the plan in view, about 100,000 tons, or 70,000,000 gallons of petrol would annually lie produced, core,timing 350,000 tons of coal, and giving employment to over one thousand miners. In addition, there would be employment in connection with the plant. The cost to the Treasury would be very small.

Regarding the proposed preference for Home made motor spirit, it is understood that the Imperial Chemical Industries, Ltd.,, who have already spent one mflion sterling on experiments, were prepared to erect a four million sterling plant on the northeast coast for making petrol from coal, provided that the duty were rtabilised and the present exemption of home-made spirit maintained.

The Directors of Imperial Chemical Industries declined yesterday night to make, any statement until the terms of the proposd guarantee have been coroiderecl. It is this plant to which Mr MacDonald was referring when he gave his estimated figures of production and employment. Imperial Chemical Industries, Ltd., bfivd the exclusive fight to operate the hydrogenation process hcl'e, .but the producers of petrol by the carbonisation method arc equally ready to extend, their plant. If the scheme is planned with an #ye to Imperial Chemical Industries Ltd..- developing it the following figures are of interest:—lmperial Chemical Industries, Limited, which lias a subsidiary Australian and New Zealand branch, had an increase in its gross income by £1,746,738 to £6,415,1 -23 for the year ended December 31st last. The dividends from its subsidiary companies amounted to £6,012,293, compared with £4,208.029. The dividend on the ordinary capital absorbed £?,0i0,376 at 6 per cent., compared with 41 per cent for the prior year.

AID FOB THE COAL INDUSTRY

LONDON, July 18.

Mr MacDonald’s announcement in the House of Commons has caused unbounded satisfaction in the coal industry. Indeed, in some quarters it has been stated that the mining industry is saved. It has been reduced to a serious plight by the increaing use of oil fuel for the navy, the mercantile marine ,ro-ad transport, and industrial and domestic heating. The Government’s decision opens the door to the manufacture from British coal by British workers of a large proportion of the 110 million gallons of motor spirit now imported .annually. Ton years of such enterprise would possibly make Britain independent of imported fuel.