HC Deb 09 April 1935 vol 300 cc1009-10

Motion made, and Question proposed, "That the Clause stand part of the Bill."

4.31 p.m.

Sir B. PETO

As to my Amendment to insert, in page 151, line 41, after "of" the words: India or, after the Federation has been established, of I would like to ask the Secretary of State a question. Sub-section (3) of the Clause is as follows There shall be charged on and paid out of the revenues of the Federation into the Exchequer such periodical or other sums as may from time to time be agreed between the Governor-General and the Treasury in respect of so much of the expenses of the department of the Secretary of State as is attributable to the performance on behalf of the Federation of such functions as it may be agreed between the Secretary of State and the Governor-General that that department should so perform. The object of my Amendment was to have these expenses charged on the revenues of India or, after the Federation has been established, upon the revenues of the Federation. I do not wish to appear to be throwing any doubt upon the Federal plan but it is admitted on all sides that it may be a long time before the Federation actually comes into being. Subsection (1) of the Clause provides: As from the commencement of Part III of this Act the salary of the Secretary of State and the expenses of his department, including the salaries and remuneration of the staff thereof, shall be paid out of moneys provided by Parliament. It seems to me that there is a substantial point to be met in this connection and I would like to know from the Secretary of State his answer upon it.

4.33 p.m.

Sir S. HOARE

I think it is necessary to make this change when provincial autonomy comes into operation. The financial arrangement is set out in the Financial Resolution namely, that the India Office, to use a general expression, will become a Treasury Office. Its expenses will come from funds here and the Government of India will pay towards the cost of the India Office what may be termed agency expenses involved in any duty which the India Office has carried out either for the Federal Government or for the Provincial Governments. The proposal merely changes round the present plan. The present plan is that the expenses of the India Office are paid out of Indian Revenues but the Treasury make a contribution in the form of a grant in aid from British revenues. In future the Treasury will provide for the India Office, the Government of India making a contribution in respect of agency functions performed by the India Office for the Governments in India. In actual practice there will not be a great difference in the expenditure one way or the other and I hope the proposal as set out in the Financial Resolution will be accepted by the Committee.

Question, "That the Clause stand part of the Bill," put, and agreed to.

Clause 267 ordered to stand part of the Bill.