SOUTH INDIAN RAILWAY PURCHASE. (Hansard, 19 March 1890)

§ * MR. BRADLAUGH (Northampton)
I do not wish to prevent this formal stage from being taken, but I do desire to intimate to the right hon. Gentleman in charge of the measure that if he wishes to prevent a debate on the Second Reading—which I have no wish to raise, as I understand there is need for passing the Bill during a limited period—he will say something as to the new policy of the Indian Government with regard to railways and the grants of land and mineral rights, especially as there is a material difference in their statements last year and this Session in reference to the Chittagong and Assam Railway. I simply say these few words to avoid delay on the Second Reading.

§ MR. A. O'CONNOR (Donegal, E.)
This Vote was obtained in Committee without explanation as to the purposes and objects with which it was put forward. We have not heard a word from any responsible Minister as to the reason why £5,000,000 should be raised here for the service of India, and if, as appears to be suggested now, the Second Reading' is to be taken without discussion or full explanation as to the present policy and attitude of the Government with regard to Indian revenue, it is perfectly unreasonable to expect the House of Commons to assent without protest. It certainly is unreasonable to expect a stage of an important measure like this to hi taken without debate on such a day and at such an hour as this. The question of railways in India is one which requires to be threshed out at considerable length. Questions have been raised here and in India as to railway works which many people would like to see undone. Enormous sums of money have been spent on these works, some of 1227 which are unremunerative, and it is a question whether it is fair to charge India for millions of capital upon which a dividend is guaranteed to English capitalists. I only rose for the purpose of protesting against the formal way in which important Resolutions of this kind are passed—without a single word of explanation.

§ * THE UNDER SECRETARY OF STATE FOR FOREIGN AFFAIRS (Sir J. FERGUSSON, Manchester, N.E.)
The hon. Member, I think, could not have been in the House when the first stage—that is to say, the Committee stage in which the Resolution was agreed to—was taken, because a question was put by an Irish Member, and I then gave a very concise, but still a true, explanation of the provisions of the Bill. The object of the Bill I can state in three minutes, and it may be as well that I should do so now. It is to enable the Secretary of State to purchase the Great Southern of India Railway, which at present bears a guarantee for the most part of 5 per cent., by raising funds at 3 per cent, which, would cause a saving to the revenues of India of £36,800 sterling a year. In 1873 the Great Southern of India purchased the railway, but in the contract with the Secretary of State there was a clause empowering the Secretary of State in 1890 to purchase these railways on an average price of Stock during three years previous; but that could only be done by giving notice on the 1st of March; accordingly, the notice was given on the 1st of March this year of intention to purchase on the 31st of December next. The necessary legal steps having been taken, the Bill has been brought in to give effect to the purchase. There is £3,200,000 of stock at 5 and 4f per cent, valued at 131 per cent, something over £1,000,000 of debentures at 3½ and 3¾ per cent., and £460,000 of debenture stock that will not be affected by this transaction; that is to say, there is £5,200,000 to pay for the railway. There is no opposition to the Bill, and it cannot impose a fresh burden on the people of India, for, as a matter of fact, it will effect a saving. There is no question of waste lands. As to what the hon. Member for Northampton has asked I can give him the answer he desires in regard to the Assam Railway. The Secretary of State does not altogether 1228 approve of the terms the Government of India propose with regard to giving waste lands in Assam as part payment for the making of the line. The Government guarantee a grant of certain lands, but have reduced the amount of the concession to be given in that particular. That has nothing to do with the Bill in question, which deals with a guarantee on the old principle of 5 per cent.

§ MR. A. O'CONNOR
Is the income of this Southern Railway sufficient to meet its liabilities?

§ * SIR J. FERGUSSON
No Sir; I am sorry to say that is not the case. There is an annual deficiency of about £140,000 on this line, but that will be reduced by this change. As the hon. Member has truly said, some railways in India do not earn the interest guaranteed on their capital, yet I should have grave doubts whether any railway can be said to be unremunerative which tends to develop a country and give greater security.