§ Order of the Day for the Third Reading read.
§ Moved, That the Bill be now read 3ª.—(The Lord Chancellor.)
§ LORD ARNOLD
My Lords, there is one observation which I should like to make upon the Third Reading of this Bill. I refrained from intervening the other evening as the hour was so late, and what I have to say will be contained in a few sentences. The noble and learned Viscount on the Woolsack, in moving the Second Reading, said that the Bill would effect a saving of £2,500 a year£500 on each of five salaries. That is true, nominally, but the actual financial saving will be less than that, and I think it is worth while calling attention to the reason why it will be less. It will be less because when these salaries are reduced there will be less Income Tax to pay on them, and if that is taken into account it will reduce the savings not merely by 4s. in the £ but, averaging out Super-Tax—for I suppose the recipients do pay Super-Tax—I should say that the deduction from the saving on account of loss of Income Tax and Super-Tax would be not less than 5s. in the £. Therefore the actual savings would possibly be only £1,750. I think that is a point which is 1530 well worth bearing in mind, because it has a larger application. We frequently hear that if we can save 1 per cent. on the internal Debt, which, is about £6,000,000,000, we shall be saving about £60,000,000 a year. The first comment I make on that is that about half the Debt cannot be converted for a very long time, but even if it could be the saving would at the most be £45,000,000 a year, owing to the loss on Income Tax and Super-Tax; and as we are constantly exhorted to watch points of finance, I think that is a matter which should be borne in mind.
§ THE LORD CHANCELLOR (VISCOUNT CAVE)
My Lords, so far from objecting to the observations of the noble Lord, I am glad that he is taking notice of the fact that, when a man is said to receive a certain salary he in fact receives considerably less, owing to Income Tax. It is often forgotten that when a Judge is said to receive £5,000 a year he in fact receives considerably less than £4,000 a year, and if a County Court Judge is said to receive £1,500 a year, he in fact has to be content with something less than £1,200 a year.
§ On Question, Bill read 3ª, and passed.
§ House adjourned at twenty minutes past two o'clock.