HC Deb 12 August 1890 vol 348 cc710-3
MR. A. O'CONNOR (Donegal, E.)

I beg to ask the Chancellor of the Exchequer, with reference to the statement he made in this House on the 26th November, 1888, relative to the financial condition of the Island of Cyprus, whether it is the intention of Her Majesty's Government to relieve in any way the Cypriotes from the heavy burden of taxation imposed upon them owing to the annual payment of £92,800 to the creditors of the Porte; and whether it is possible to arrive at a financial arrangement for the commutation of the tribute or for its substantial reduction?

MR. GOSCHEN

So far as the first portion of the question is concerned, if it means to ask Whether it is the intention of the Government to relieve in any way the Cypriotes from the heavy burden of taxation imposed upon them by any further grant or subsidies, I am afraid that I cannot answer in the affirmative. As regards the sum of £92,800 mentioned by the hon. Member, it forms a portion of the terms of the Anglo-Turkish Convention, and therefore Her Majesty's Government have no power of reducing it. As regards commutation, it stands as a different matter; and it could not be carried out without the consent of the Porte, on the one hand, and of France on the other. If the tribute were commuted and the Porte were willing to take a sum down, and if at the same time an arrangement could be made with France by which the present loan can be paid off and the money raised on cheaper terms, I think there would be a saving possibly of some £11,000 or £12,000. Such an arrangement could not be carried out without the consent of the Porte and France, but that is a matter which is under the consideration of the Government.

SIR W. LAWSON (Cumberland, Cockermouth)

Would it not be possible for the Government to withhold the tribute from the Porte until the Porte fulfilled its Treaty obligations to Armenia?

MR. GOSCHEN

If we withheld it from the Porte we should not have assets in our hands to pay the liability in which we have engaged.

MR. A. O'CONNOR

Would it not be possible to lighten the burden by capitalising the charges, just in the same way as you propose to capitalise the charges payable by the tenants in Ireland, in discharge of all their liabilities to the landlords?

MR. GOSCHEN

Such an arrangement would require the consent of the Porte and of France, and if it could be effected it would result in a saving of £11,000 or £12,000 a year. It is a matter which is under the consideration of the Government.

MR. A. O'CONNOR

Could not a lump sum be paid to the Porte with the view of securing future relief?

MR. GOSCHEN

It would depend whether the lump sum was large enough to induce the Porte to commute.

MR. A. O'CONNOR

I beg to ask the Under Secretary of State for the Colonies whether Her Majesty's Government are aware that the system of collecting the tithe in kind on wheat, barley, vetches, and oats, which has been introduced experimentally, at the request of the Archbishop and the elected members of the Legislative Council of Cyprus, has met with the general approval of the tithe-payers; and whether the Secretary of State will consider the advisability of recommending the High Commissioner to extend the system to the districts of Larnaca (Upper), Limassol, and Kyrenia, and to the Nahiehs of Dagh and Deyrmenlik, in accordance with the frequently expressed desire of the tithe-payers in those parts?

BARON H. DE WORMS

The system of collecting tithe on cereals in kind is believed to be acceptable to the tithe-payers in Cyprus, and is being gradually extended. The Secretary of State will consult the High Commissioner as to extending it to the Nahiehs mentioned by the hon. Member.

MR. A. O'CONNOR

I beg to ask the Under Secretary of State for the Colonies, in regard to the statement he made in this House on the 8th August, 1889, "that since the British occupation, there has been a larger remission of taxation" in Cyprus, whether he is aware that the Elected Members have declared that statement to be inaccurate; whether it is a fact that, under the Government of the Sultan, the average revenue derived from taxation was £138,133, as against £182,967 a year collected under British administration; whether he is aware that the Superintendent of the Land Registry Office has admitted that the "selling price of land is often less than its assessed value"; and whether the Secretary of State will desire the High Commissioner to cause the "Verghi" assessments to be revised throughout the Island, with a view to their reduction to the actual value of the property assessed?

BARON H. DE WORMS

The statements contained in the first three paragraphs of the hon. Member's question are practically extracted from a Paper laid on the Table by me in April last, and are dealt with by the Secretary of State in his Despatch, printed at page 23 of Blue Book C, 6,003. No general revision of the Verghi assessments throughout the island can take place unless and until the Legislature consents to pass a law providing the machinery for such an assessment in a form which the Government can accept. But the local Government have instructions to do what is possible under the existing law to redress individual cases of injustice or inequalities.

MR. A. O'CONNOR

Is the right hon. Gentleman aware that at this moment the agricultural population of Cyprus are reduced to the extremity of distress by reason of the heavy burden of taxation and the enforced sale of their property?

BARON H. DE WORMS

So far from a condition of extreme distress, the reports show their agricultural condition to be much improved.

MR. A. O'CONNOR

Is it not practically impossible to collect tithe in money, and would payment in kind, though possibly a loss to the island, not be a material relief to the population?

BARON H. DE WORMS

I stated that the Secretary of State has consulted the High Commissioner with the view of extending the system of collecting tithes in kind.