HC Deb 12 July 1920 vol 131 cc1936-8
48. Mr. PALMER

asked the Minister of Transport whether any of the railway companies working under the Government guarantee, other than the North-Eastern Railway Company, have sought to include in their expenditure accounts submitted to the Financial Department of the Ministry sums spent in the settlement or cancellation of agreements made between the companies and servants of the companies; and whether he can say if he has given definite instructions that no such claims shall be admitted?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

I have made enquiry, and as far as is known there was only one such case which occurred in 1916. The claim was not allowed, but as I am informed that it is still the subject of correspondence, I have instructed Sir H. Lever that the rule laid down in the North-Eastern case is to apply to any similar case. No payment will be made in any case unless the Law Officers advise, upon the facts of the case, that the Government is liable under the terms of the agreement by which the railway in question was taken over.

60. Mr. PALMER

asked the Minister of Transport whether he can state the grounds upon which he acted in disallowing the North Eastern Railway Company's claim that the item of £50,000 granted to himself in cancellation of his agreement with the Company should be paid by the taxpayer under the terms of the State guarantee?

Mr. CHAMBERLAIN

The item was disallowed on the ground that it is not properly chargeable as a working expense under the terms of the Agreement between the Railway Company and His Majesty's Government. If the hon. Member wishes to put any further questions on this subject, I shall be obliged if he will address them to me.

Mr. PALMER

Is the right hon. Gentleman aware that litigation was threatened in regard to this Agreement unless the Company made some arrangement?

Mr. CHAMBERLAIN

I have no knowledge on that subject, nor does it seem material that I should have knowledge.

Mr. PALMER

Is the right hon. Gentleman aware that I did not put that question to him, because I wanted to get an answer from the Minister of Transport?

Mr. CHAMBERLAIN

Yes, but it does not affect the Government. The arrangement between the individual concerned and the Company does not affect the Government, unless it is found that, under the terms of the Agreement made by the Government in 1914 with the railway companies, such an Agreement is properly chargeable against our Guarantee. So far we dispute that, and we have not admitted any charge, and are not proposing to admit any charge, of this kind against the Government Guarantee, unless we are advised by the Law Officers that we are bound to do so?

Mr. PALMER

Then is the matter still open, and a decision has not been finally arrived at by the Law Officers of the Crown on the matter?

Mr. CHAMBERLAIN

I have had no occasion to refer to the Law Officers yet. We have simply told the Railway Company we shall not pay.