HC Deb 06 December 1867 vol 190 cc646-8
MR. OTWAY

said, that a letter on the subject of Irrigation in India had appeared in the City Article of The Times, with a signature and address well known at the India Office, and, with reference to the statements therein contained, he would beg to ask the Secretary of State for India, Whether it is true that the East India Irrigation Company is compelled by the regulations in India to charge for their supply of water only one-fifth of the price charged by the Government for its supply; whether he contemplates purchasing the rights and property of this Company, and, if so, from what source he proposes to take the sum necessary for the purchase; whether any negotiations have been entered into with the Chairman or other officers of the Company respecting the sum of £50,000, or any other sum to be paid to them as compensation in the event of the purchase; and, whether it is his intention to obtain the sanction of Parliament before completing their purchase?

SIR STAFFORD NORTHCOTE

, in reply, said, he had seen the letter to which the hon. Member referred; but he was not prepared to admit the correctness of the statement that the East India Irrigation Company "was compelled to charge for their supply of water only one fifth of the price charged by the Government for its supply." As he understood the mode in which that calculation was made, it was something to this effect:—The writer took the price at which the Company were required to supply their water. He said they supplied such and such a quantity of it, and calculating the quantity of water supplied in the North-West Provinces under the Government regulations there, the price per gallon was very much lower in Orissa than in the North-West Provinces. Now, that was not the way in which the charge was regulated. It was regulated at so much per acre, and he thought it would be found that the rates prescribed in Orissa and those in the North-West Provinces were substantially tolerably equal. The rates fixed for Orissa were—for a single flooding, 1½ rupees per acre; for one crop 3 rupees per acre; for two crops within the year, 6 rupees per acre, commutable to an annual payment of 5 rupees per acre. In the North-West Provinces a somewhat similar arrangement prevailed, but at rather various rates for different crops—for sugar-cane and gardens, 5 rupees per acre; for rice, tobacco, opium, vegetables, and Singhara nuts, 3 rupees per acre; all other spring crops, indigo, and cotton, 2¼ rupees per acre; and for all other rainy season crops, 1 2–3rds rupees per acre. It was impossible, however, to enter into a full discussion of the subject in answer to a Question of this kind. With regard to the Question whether it was in contemplation to purchase the rights and property of this Company, and, if so, from what source the sum necessary for the purchase was to be taken, he would say that such a purchase was intended. The Government of India had stated to the Secretary of State that, in their opinion, it would be desirable to make an offer to the Company to purchase the whole of their works and plant in Orissa and Behar, and that subject had been under consideration for some time. Ultimately, on the 22nd of November, the Council came to the conclusion that it was desirable to make an offer to purchase those works. Of course, the sum necessary for that purpose must come from the revenues of India, and would be something between £800,000 and £900,000. It was a question whether the money could be provided out of the surplus revenues of India within the present year, or whether it would become a charge upon the Indian revenues in the shape of a debt. If the latter course were decided on, it would only be giving effect to a provision made last year under the auspices of his noble Friend the Member for Stamford (Viscount Cranborne), that irrigation works in India should be carried on to a certain extent with borrowed money; and it might possibly be thought desirable that money should be borrowed for the purpose of taking these important works into the hands of the Government and carrying them on. With regard to the next Question of the hon. Gentleman, he would state the proposal that had been made. The Council proposed to purchase the works on the terms of giving to the Company the par value of their shares in cash, and, in the words of a letter to Mr. Westward, dated November 22, 1867— A further sum of £50,000, to be appropriated in any way that a general meeting of the shareholders of the Company, called for the purpose, may decide, whether in compensation of their officers, or otherwise, on the distinct understanding that the Secretary of State will not hereafter recognise any further claim for compensation for the officers and servants of the Company. The money, therefore, was not to be given by way of compensation to the officers or directors, but to the shareholders, and the Secretary of State clearly said that the officers should have no claim whatever upon the revenues of India. With respect to the last Question, it was not necessary that he should bring the matter before Parliament, and he would not take any exceptional course for that purpose.