HC Deb 08 March 1910 vol 14 cc1432-3
The UNDER-SECRETARY of STATE for INDIA (Mr. Montagu)

moved a Resolution authorising the raising a loan of £25,000,000 for the purposes of railways and irrigation in East India.

Sir FREDERICK BANBURY

I should like to have some explanation as to the reasons for this Resolution. I do not wish at the moment to complain of the fact that no one in the House had any means of ascertaining what was in the Resolution except by going to the desk and looking at the paper. I did so, and I find that the sum proposed to be raised amounts to £25,000,000. Before we talk about raising that sum I think we ought to have some clear and lucid explanation from the Government of the reasons for raising such a very large sum of money. Some time ago there was a 3½ per cent. Sterling Loan issued, and that issue was not very successful. Unless I am very much mistaken it was underwritten, and the underwriters had to take a considerable portion of it. At any rate, the loan, if it did not go to a discount, remained somewhere about par. In the circumstances I would like to ask whether it is a good time to choose for bringing forward a Resolution which means an additional twenty-five millions of money? The next question is, what is this money for? As far as I can gather it is for making new railways, purchasing old railways now in the hands of companies, and constructing irrigation works. I think that the hon. Gentleman ought to be able to tell us how much money is to be devoted to each purpose. Irrigation works and railways have nothing to do with each other, and I think that we should have had, not one Resolution, but two Resolutions, one dealing with each kind of work. One of my hon. Friends has asked me at what rate of interest the money is to be raised. The answer is very simple. It will be raised as cheaply as it can be got; but what the rate of interest will be is a very different matter, because the extravagance of hon. and right hon. Gentlemen opposite is beyond belief. Not a day passes but we have a Resolution to borrow money by this Government, which came in saying that the great thing which they ought not to do was to borrow money.

Mr. MONTAGU

The Resolution before the House is merely a Resolution upon which to found a Bill in accordance with precedent. This Bill is a Departmental Bill, such as come up at intervals, and for which in the discussion on the Second Reading I will be prepared to give a full justification. When Mr. Brodrick introduced a Bill of the same kind a Resolution was granted by the House and the Bill was passed without discussion.

Sir F. BANBURY

Will the hon. Gentleman give us an undertaking that we passed without discussion.

Mr. MONTAGU

Yes.

Resolved, That it is expedient to authorise the Secretary of State in Council of India to raise in the United Kingdom on the security of the Revenues of India, by the creation and issue of capital stock, bonds, debentures, or bills, a sum not exceeding £25,000,000 for the following purposes:—

  1. (a) The construction, extension, and equipment of railways in India by State agency or through the agency of companies;
  2. (b) The repayment of the principal of any bonds or debentures issued by any such company under the guarantee of the Secretary of State;
  3. (c) The discharge of any obligations incurred by the Secretary of State by reason of the purchase of any railway or the determination of any contract from or with such company;
  4. (d) The construction of irrigation works in India.—[Mr. Montague.]

Resolution to be reported to-morrow (Wednesday). Adjourned at Two minutes after Eleven o'clock.