§ 2.35 p.m.
§ LORD HAILEYMy Lords, I beg to ask the noble Earl, the Secretary of State for India, the question of which I have given him private notice: Whether His Majesty's Government have any statement to make regarding compensation for members of the Indian Services on account of the decision to transfer power in India by a date not later than June, 1948.
§ THE SECRETARY OF STATE FOR INDIA AND BURMA (THE EARL OF LISTOWEL)My Lords, I am much obliged to the noble Lord, Lord Hailey, for asking the Government this question, because it enables me to make a statement which I think the House would wish to have at the earliest possible moment. The statement is as follows:
A decision has now been reached on the compensation of members of the Indian Services whose careers will be affected by the transfer of power. This decision needs to be viewed against its historical background and I will, with the permission of the House, explain the circumstances which have led up to it.
The Act of 1919 placed officers appointed by the Secretary of State in subordination for the first time to Indian Ministers under the system of dyarchy established in the Provinces. This was considered to make a radical change in the conditions under which they had been appointed to serve and Section 96B of the Act was enacted to provide compensation in the case of persons appointed before the commencement of the Act. But the altered conditions of service created doubts in the minds of possible candidates as to future security of tenure and, in order 236 to dispel these doubts and to ensure the necessary flow of recruits, authoritative explanations which carried assurance of a permanent career in India were given at the universities and elsewhere. The principle of assured service or, in default, compensation was enunciated in 1934 by the Joint Select Committee of Parliament without limitation to those appointed before any particular date. In this form statutory effect was given to it by the detailed provisions contained in Part X of the Government of India Act, 1935.
It was thus the intention of Parliament that officers whose careers and prospects were prejudiced by constitutional changes should receive such compensation as the Secretary of State might consider just and equitable.
When in 1945 recruitment for the I.C.S. and the Indian Police was resumed, with provision for compensation if for constitutional reasons service was terminated prematurely, the then Secretary of State undertook, at the request of the Government of India, that officers already serving would, if their services were similarly terminated, be granted terms not less favourable considered as a whole than those applicable to the new recruits. His Majesty's Government have, therefore, considered what arrangements should be made to compensate these and other officers appointed by the Secretary of State for loss of career and prospects.
There is also a further important factor to be considered. The Government of India inform His Majesty's Government that they are most anxious to avoid the loss of experienced officers. They have stated that they are prepared to give to those members of the Secretary of State's Services who continue to serve under government in India the same terms as to scales of pay, leave, pension rights and safeguards in matters of discipline as hitherto. Provincial Governments are being asked to give a similar assurance to officers continuing to serve in their Provinces. In the case of Indian officers they feel that sentiments of patriotism will impel them to continue to serve their country and that they can look for a positive improvement in their prospects. They agree, however, that compensation should be payable to Indian officers who:— 237
They do not feel that compensation should be admissible to Indian officers in other cases.
- (1) are not invited to continue to to serve under Government in India after the transfer of power, or
- (2) can satisfy the Governor-General that their actions in the course of duty during service prior to the transfer of power have damaged their prospects or that the appointments offered to them are such as cannot be regarded as satisfactory in the altered circumstances, or
- (3) can show to the satisfaction of the Governor-General that they have legitimate cause for anxiety about their future in the Province where they are now serving and that no suitable transfer can be arranged.
His Majesty's Government have now considered the position created by the undertaking given in 1945, the views expressed by the Government of India about the future, and all other relevant circumstances. While reserving the right to reconsider the position if any Provincial Government are unwilling to give the assurance that I have mentioned, they feel that there is a radical difference in the effect which the transfer of power will have upon the position of European and Indian officers respectively. The former will no longer be serving under the ultimate control of the Parliament of their own country and it cannot be maintained that their prospects will be the same as in the past. On the other hand, Indian officers will continue to serve their own country on the same terms as before. These will be guaranteed by the Government of India or by the Provincial Governments as the case may be, while their prospects will be improved. The same case for compensation, therefore, does not arise, though there may be exceptions within the three classes referred to. His Majesty's Government have accordingly authorized the Viceroy to announce that they accept the obligation to see that European officers and those Indian officers in the three special categories should receive compensation for the loss of their careers and prospects consequent on the transfer of power. They undertake also that the members of the Secretary of State's 238 Services in India who retire will be secured in their rights to the leave then due to them.
Opportunities will exist for further Government service for many of those who will become entitled to compensation. It is the earnest hope of His Majesty's Government that officers will freely avail themselves of these opportunities. The terms of such further employment will be a matter for consideration; but where British officers of the Civil Services accept appointment to another Civil Service under His Majesty's Government on a permanent, pensionable basis, they will receive no compensation but will be eligible for a re-settlement grant of £500.
The development of the policy of His Majesty's Government for constitutional advance in India has affected European officers and other ranks of the Royal Indian Navy, Indian Army and Indian Medical Service in a similar way to the members of the Civil Services. The same principles of compensation will, therefore, be applied and the scales are being published forthwith.
His Majesty's Government are anxious to do all in their power to assist the Indian Administration over the difficulties entailed by the transfer of power and, in order to minimize the loss of experienced officers and to encourage those British officers who are invited to do so to continue in service under Government in India, they undertake that these will receive the compensation to which they are entitled should they desire at any time after the transfer of power to exercise their right to retire. The amount of such compensation will be determined in accordance with the Tables by the date on which active service ceases, and service rendered both before and after June, 1948, will be taken into account. Compensation will be payable in addition to such retiring or proportionate pension as is admissible under rules.
The sources from which the monies involved will ultimately come must be a matter to be dealt with hereafter but, so far as the individuals affected are concerned, they have the assurance of His Majesty's Government that they will receive the monies to which they will become entitled. 239 The Government of India accept liability for pension and proportionate pension earned by service under the Secretary of State, whether by civilians or by members of the Defence Services.
His Majesty's Government have accordingly authorized the Viceroy to make the announcement which is published in a White Paper laid to-day. The White Paper also contains Tables setting out the scales of compensation for the various Services affected.
I hope to make a very early announcement regarding compensation for the Services in Burma where the position is similar to that in India, and discussions are now in progress with the Government of Burma as to the terms and scope of the arrangements to be made.
§ 2.45 p.m.
§ VISCOUNT TEMPLEWOODMy Lords, obviously it is very difficult to ask questions until we get the White Paper and have the opportunity of studying it. In the meanwhile, subject to reservations in connexion with the study of the White Paper afterwards, I would like to ask the noble Earl if he can tell the House, speaking generally, how these terms of compensation compare with terms given to the Services whose employment was terminated in Egypt? Secondly, I would ask, is the noble Earl aware that the distinction between Indian and British personnel will work very hardly upon certain members of the Indian Services? Whilst I do not wish to enter into an argument with the noble Earl upon this subject to-day, I would say, here and now, that I think these two classes of personnel, having been recruited upon the same terms and having done the same work over a number of years, ought certainly to be treated in the same way.
§ THE EARL OF LISTOWELAs to the first question addressed to me by the noble Viscount, which would involve a comparison of the terms for India with the terms given in the case of Egypt, I cannot, I fear, answer without notice. As to the second question, I cannot agree with the noble Viscount that there is any hardship imposed by these terms, and I hope that when he has had an opportunity of examining the White Paper he will agree that the terms are generous.
§ VISCOUNT SIMONMay I venture to ask one further question? I quite agree that we must study the White Paper before we can form a final judgment, but I understood the noble Earl to say that there might be persons now in the employ of the authorities in India whose services the future Indian Government would not desire to retain, and that there was another class to which the Indian Government might offer continuance of employment, but in which the officer felt that if he did accept that offer, his prospects would be prejudiced. It is as regards the second of these cases that I wish to put a question. The noble Earl said, I think, that the question of whether, in the second case, the officer would be regarded as justified in saying he would not continue but wanted compensation, would be decided by the Governor-General. After June of next year, would that be decided by the Governor-General upon his own personal judgment, or would it be decided by the Governor-General as a constitutional head, acting only on the advice of the future Indian ministry? If it were the latter, I do not think the guarantee would necessarily be considered as satisfactory as if it were the first.
§ THE EARL OF LISTOWELThe question that the noble and learned Viscount has addressed to me is whether the Governor-General will act upon the advice of his ministerial officers or whether he will act upon his own personal judgment. The agreement which has been reached is that the Governor-General shall exercise his personal judgment, after hearing all the evidence that is relevant in a particular case, and I am satisfied that there will be ample opportunity for any civil servant who feels that the continuation of his service in India might lead him into a difficult position to lay full evidence before the Governor-General, and that he will have a completely fair hearing.