HC Deb 12 November 1928 vol 222 cc466-7
9. Mr. R. YOUNG

asked the Under-Secretary of State for India, with regard to the notice given to the Southern Punjab Railway Company that it is the intention of the Government to exercise its right to purchase the line, the terms of purchase and when the transaction will take effect?

Earl WINTERTON

The terms of the purchase of the Southern Punjab Railway under the provisions of the contracts with the company are payment in sterling of a sum equal to 25 times the yearly average of the company's share of the net earnings of each of their lines during the five years preceding purchase, subject to a maximum of 20 per cent. in excess of the total capital expenditure of the company in sterling on each line as sanctioned by Government, and a minimum of such capital expenditure. The purchase will take effect on 31st December, 1929.

Mr. YOUNG

Can the Noble Lord give the reasons for taking over this line?

Earl WINTERTON

Generally speaking the policy of the Government of India in recent years has been to acquire these railways.

Mr. YOUNG

Is this a step towards the nationalisation of Indian railways?

Earl WINTERTON

I have pointed out to the House before that no adequate or fair comparison can be drawn between the condition of railways in India and this country.