INDIAN PAY (TEMPORARY ABATEMENTS) BILL. (Hansard, 16 March 1933)

§ THE PRESIDENT OF THE BOARD OF EDUCATION (LORD IRWIN)
My Lords, I do not know that at this stage of your Lordships' business you will desire me to make a long speech on this Bill which, indeed, is not unfamiliar to your Lordships, because it follows very closely the lines of a Bill that was before your Lordships' House last year. It will be within the recollection of the House that last year it was found necessary, owing to the exigencies of Indian finance, to impose a cut of 10 per cent. upon the pay of members of the Services serving in India. and it was consequently necessary to come to Parliament for statutory power 1228 to make that cut, as the members of these Services were in the enjoyment of statutory protection. On that occasion an undertaking was given by the Secretary of State for India— that it was his intention, if finances permitted, to restore the cut at the earliest opportunity, and the Bill only had currency for the period of twelve months. The position to which the Secretary of State then looked forward has not been reached in the fashion that he hoped, and he, after consultation with the Government of India, has come to the conclusion that it is not possible to do more than restore half the cut this year, thereby continuing a cut at the rate of 5 per cent. for another twelve months. That is the purpose of the Bill that I now have to move should be read a second time.
There is one other matter in regard to which I think I should place your Lordships in full possession of the facts, which is, that the restoration of 5 per cent. of the cut and the continuance of the other 5 per cent. of the cut is accompanied by a revision of the Income Tax concession with which the full 10 per cent. cut last year was accompanied. Last year those who were subject to the 10 per cent. cut were in some degree assisted by an Income Tax concession which has now been withdrawn, but the withdrawal of that Income Tax concession, which is part of the general financial arrangement that the Secretary of State considers necessary, has been so arranged as to fall most lightly upon the lower and lowest grades of pay, and the net result of the combination of the measures— namely, the continuance of the 5 per cent. cut and the withdrawal of the Income Tax concession— is that the lowest grades of pay will get, I think, something between 4 per cent. and 4.5 per cent. of remission, and the remainder, the higher grades of pay, will get proportionately less. But all cases will be secured against any technical combination of those two things operating in their disfavour.
I need hardly say that it would have been more congenial to me, as it would have been to my right honourable friend in another place, to have been spared the necessity of moving a Bill continuing in any degree a cut upon the members of these Services in India. Your Lordships will be well aware that, for various reasons, the position of the Services in 1229 India is not comparable precisely with the position of the Services in England, in regard, for instance, to such matters as the higher expense necessarily involved upon domestic budgets by service in India, all of which would, I think, have constituted good reasons for straining financial prudence to restore the whole cut in spite of the fact that it had not been possible to make a similar restoration here. I can assure your Lordships that the matter has been viewed with the utmost desire to do that and with the utmost sympathy, but the proposals of this Bill represent the limit to which my right honourable friend has thought it possible to go on this occasion, although he hopes that if the Indian financial position continues to improve it would be possible to make complete restoration next year. I beg to move.

§ LORD SNELL
My Lords, may I ask the noble Lord whether he is in a position to give a promise that the matter will be reviewed next year in the case of the remaining 5 per cent?

§ LORD IRWIN
I am, indeed, because the noble Lord will appreciate that this Bill only has a duration of one year. It is a valuable example perhaps of the practical protection that these Services enjoy at the hands of Parliament, that, no inroad can be made upon their salaries without the direct assent of Parliament. Accordingly, if, as I should hope would not prove to be the case, it were found next year to be again necessary to make a reduction of pay the Government of the day would be obliged to come to Parliament for Parliamentary approval. I hope, however, that that will not be necessary.