CLAUSE 34.—(Nationalised undertakings.) (Hansard, 11 June 1947)

§ The Solicitor-General
I beg to move, in page 31, line 19, to leave out "for." and to insert: to be made for or in connection with.' This Amendment is to the Clauses which deal with the deductions which are not to be made in computing profits of nationalised undertakings. It is not entirely of a drafting nature; but it is designed to make clear something which is intended but is not quite clear as the Clause is worded. We want to make it certain that, amongst the payments which cannot be deducted as provided by Subsection (2) of Clause 34, there is included 1188 compensation for severance. Compensation for severance is provided for by Clause 47 (4) of the Transport Bill. We thought that if the word "for" were in line 31 of that Subsection there might be some doubt whether that was apt to cover something like compensation for severance, with regard to which it could be said it was not strictly for the acquisition of the nationalised undertaking. Therefore we seek to widen the word "for" by adding the words "or in connection with." The result would be that by so widening the scope of those words we would include such a thing as compensation for severance.

§ Captain Crookshank
What are we doing?

§ The Solicitor-General
This is an Amendment to page 31, line 19, where it says: raise the money for paying, compensation for the acquisition of any property.… We want to substitute the words "for or in connection with" for the word "for," so that it will read: compensation for or in connection with.… The object of that is to make certain that we include such a thing as compensation for severance.

§ Captain Crookshank
That is the whole point. I have been trying to make sense of this. At first, the learned Solicitor-General read out the Amendment as merely "or in connection with." That I understand. But you, Mr. Beaumont, read out the words to be inserted as: to be made for or in connection with.

§ The Solicitor-General
Yes, that is right.

§ Captain Crookshank
I find it very hard to understand that, because it will then read: being payments of interest on stock issued as, or to raise the money to be made for or in connection with.….

§ The Solicitor-General
The proposed words should be inserted in place of the second "for"; that is to say, after "compensation."

§ Mr. Stanley
Could I just begin again, and ask a question? When we vote on this, how do we know which "for" we are leaving out in line 19? I thought we should be leaving out the first "for," but it appears, on the contrary, that we are leaving in the first "for" but leaving out the second "for." How do we know that our decision on this Amendment will be correctly recorded?

§ The Deputy-Chairman (Mr. Hubert Beaumont)
There may be a mistake on the Order Paper, but perhaps I should say that there has also been an omission on the part of the Chair. Therefore, let me put the Amendment again. In page 31, line 19, leave out the second "for," and insert to be made for or in connection with.

§ Mr. Stanley
Then we are to take it that there has been a manuscript Amendment to leave out the second "for." It would, of course, have been much more convenient had it appeared on the Order Paper in the proper form.

§ The Deputy-Chairman
It may help the Committee if I read the Amendment again.

§ The Solicitor-General
I beg to move, in page 31, line 22, at the end, to insert: or being payments of interest payable to recipients of such compensation, or to persons who held securities carrying the right to such compensation in respect of periods beginning with the acquisition. The object of this Amendment is very similar to that of the last Amendment. In order to make it perfectly clear where these words come in, let me say they come in at the end of line 22. These words are designed to ensure that the provisions of Clause 34 (3, a) which lays down that in computing the profits of the nationalised undertaking in question for Profits Tax no deduction is to be made in respect of interest on compensation stock, include—and it will apply to cases where interest is paid following nationalisation —interest paid before the issue of the stock, or in respect of compensation which is to be satisfied in cash. We are seeking to make sure that compensation is also included amongst the categories of payments which cannot be deducted. If hon. Members will look at the wording, they will see that it is appropriate and depends upon Clauses 32 (2) and 48 (4, a) of the Transport Bill.

§ Mr. Stanley
What are the securities carrying the right to such compensation to which this Amendment refers? It is a curious phrase, and I am wondering what exactly was in mind.

§ The Solicitor-General
They are the securities which are provided for in the Clauses of the Transport Bill to which I have referred—Clause 32 (2), Clause 48 (4, a) and paragraph 5 of Part II of the Fifth Schedule.

§ Mr. Stanley
Can the Solicitor-General tell us briefly what they are?

§ The Solicitor-General
As hon. Members know, the details of compensation under the Transport Bill are rather complicated. The particular Clause refers to the case where interest is paid prior to the issue of stock which is finally issued by way of compensation under the Transport Bill.

§ The Solicitor-General
I beg to move, in page 31, line 26, at the end, to insert: and repayments by that Board to that Authority of any such payments of interest by that Authority as are mentioned in paragraph (a) of this Subsection. Clause 42 of the Electricity Bill provides for payment of interest by the North of Scotland Hydro-Electric Board to the Central Electricity Authority for periods before the issue of the compensation stock. The object of this Amendment is similar to the object of the previous Amendment, namely, to make sure that these particular payments are also included with the other categories of payments referred to in Clause 34.