§ 56. Sir J. BUTCHERasked the Chancellor of the Exchequer whether he is aware that Income Tax which has not been assessed or in any way verified is being deducted from the pensions granted to disbanded men of the Royal Irish Constabulary, with a promise that, if it is found later that the amount has been wrongly deducted, it will be readjusted; whether he is aware that this deduction is causing great distress to these men, whose 208 pension is already insufficient to enable them to maintain themselves and their families and who are unable to obtain work; and whether he will give directions that this practice of deducting Income Tax before assessment shall be at once discontinued and that no Income Tax shall be deducted from the pension until it has been properly assessed?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hilton Young)The hon. and learned Member's question presumably refers to the case of men recruited in Great Britain and disbanded before the end of the last financial year. The Income Tax assessments in these cases were made on the footing of the men being on full pay for the whole year, and were, therefore, excessive to the extent of the difference between full pay and pension as from the date of disbandment, which would be on or after the 1st February last. Arrears of Income Tax for the past year are being deducted by monthly instalments from pension, the amount of each instalment being £1. The final assessments will be adjusted in every case with as little delay as possible. I would point out that this tax is long overdue, and that it was incumbent on the men themselves, who were aware, or ought to have been aware, of the approximate amount of their liability, to make provisions for its payment before the end of the financial year.
§ Sir J. BUTCHERWill my hon. Friend consider the case of men, of whom there are many, for whom Income Tax has not been definitely assessed, who are only provisionally assessed, and who get amounts deducted from their pay which cause very great hardship and distress?
§ Mr. YOUNGI do not understand the matter referred to in the hon. and learned Member's question to fall within that category.
§ 84. Sir J. BUTCHERasked the Chief Secretary for Ireland whether the British Government will continue to be responsible for the payment of the pensions of officers and men of the Royal Irish Constabulary who retired on pension before the signature of the Treaty and will undertake not to transfer their responsibility for these pensions to the Irish Free State Government?
§ The CHIEF SECRETARY for IRELAND (Sir Hamar Greenwood)Subject to any necessary financial adjustments between the two Governments and to such arrangements as may be found convenient for the actual issue of pensions, His Majesty's Government is, and will remain, responsible for the due payment of these pensions.
§ Sir J. BUTCHER"Subject to readjustment"—what does the right hon. Gentleman mean? Does he mean that the British Government are going to continue to pay their just debts, or not?
§ Sir H. GREENWOODThe qualification is necessary for dealing with very large sums of public money, but the essentials are embodied in the answer, namely, that His Majesty's Government is, and will remain responsible for the due payment of these pensions.