CLAUSE 116.—(Subsidies for the encouragement of trade or industry.) (Hansard, 27 May 1935)

§ The SOLICITOR-GENERAL
I beg to move, in page 71, line 39, to leave out "payable out of public moneys."
The object of this Amendment is to correct a mistake. In the Committee stage the words "payable out of the revenues of the Federation or of a Province "were substituted in the earlier part of this Clause for the original words "payable out of public moneys." Those words were put in to meet an objection by the States. When the Amendment was made the words "payable out of public moneys" were not omitted from the other part of the Clause.

§ Mr. MOLSON;
I beg to move, in page 72, line 14, at the end, to insert "and until 869 On the Committee stage I moved an Amendment to the same effect, but differently drafted, and my hon. Friend the Under-Secretary asked me not to press it on the ground that it did not add very much to the sense of the Clause. The House is aware of the general position with regard to the payment of these subsidies, and it occurred to us that it was possible that the Clause as drafted might be interpreted to mean that a company would not in any circumstances be entitled to receive a subsidy unless at the time the subsidy Act was passed it was complying with the conditions laid down in the Clause. That was never the intention of the External Fiscal Commission or the Round Table Conference, and I do not think it was the intention of the Government. If the Government's interpretation of the Clause is right, my Amendment would only mean the addition of two redundant words, but, in the view of my advisers, it will clear away an ambiguity.

§ The SOLICITOR-GENERAL
We are grateful to my hon. Friend for putting down this Amendment. For the reasons he has advanced, we think that it is desirable to have these words in.

§ The SOLICITOR-GENERAL
I beg to move, in page 72, line 16, after "India, "to insert: or, if the Act so provides, is incorporated by or under the laws of British India or of a Federated State. 'This and the two following Amendments potentially bring into Sub-section (2) the Indian States. The Sub-section as drafted applied only to companies incorporated in British India, and the conditions as to reasonable facilities for training applied only to British subjects domiciled in India. These Amendments extend the Clause so that any Act may provide that this Clause as a whole and the facilities referred to can apply to companies incorporated in the Federated States.

§ Sir STAFFORD CRIPPS
May I ask whether this Amendment is in the right form? It does not seem to read sensibly, because, if these words are added, the words "is incorporated by or under the laws of British India" will appear twice.

§ The SOLICITOR-GENERAL
I will certainly look into that point. I read it as though it were put in that way because the Act contemplates, on the one hand, that the law may apply to British India, and, on the other hand, that the law may apply to British India or the States; but that it did not contemplate applying to the States and not to British India.