§ 3.2 p.m.
§ LORD HAILEYMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether it is their intention to place on a statutory basis the undertaking given by the Chancellor of the Exchequer on June 18 last that pensioners of the former Indian Services would receive compensation from the Government of the United Kingdom for any additional taxation in which they may be involved by the imposition of Indian income tax, and if so, whether it is intended that such compensation shall cover any future changes in Indian taxation which may become applicable to their pensions.]
§ THE LORD PRIVY SEAL (THE MARQUESS OF SALISBURY)My Lords, on behalf of my noble friend the Secretary of State for Commonwealth Relations, I beg to reply. Her Majesty's Government are considering what statutory provision would be required in the long term to give effect to the undertaking given by the then Chancellor of the Exchequer on June 18 last. In the meantime, provision has been, and will be, made in the Estimates and in the Appropriation Act to cover this year and 1952–53. As regards the future, the former Chancellor of the Exchequer, when announcing the scheme, said (OFFICIAL REPORT, Commons; Vol. 489, Col.129):
… I cannot pledge the Government here and now, whatever the circumstances may be in the future, to pay compensation in every condition. I use these words of caution as 297 I think that I am entitled to do at this stage in the proceedings. It is, however, our intention to see that justice is done.I hope the noble Lord will not press me to go further than this at the present stage.
§ LORD HAILEYMy Lords, I am grateful to the noble Marquess for his reply, and for his repetition of the guarantee that has been given to us on a previous occasion by a Chancellor of the Exchequer. I have no wish to press the noble Marquess for a more definite statement at this stage, as I am well aware that there are reason which make that undesirable. I would only ask him to impress on the noble Lord, the Secretary of State for Commonwealth Relations, the great anxiety that is felt by the pensioners who were former members of the Services in India—I may say that the pensioners include widows who are drawing on the contributory annuities—that this measure should be placed on the Statute Book and thereby put beyond any doubt as to possibilities of future interpretations, chances or mischances on the part of the Department concerned.
§ THE MARQUESS OF SALISBURYMy Lords, I am, of course, very ready to do that, although I am certain that my noble friend, with his long Indian experience, will be well aware of the considerations the noble Lord has in mind.