asked the Secretary of State for War if he is aware of the hardship which will be caused by the cessation of the Indian transitional allowance on 31st March, 1950; and what steps he is proposing to take to alleviate this hardship.

The Indian transitional allowance which was introduced with effect from 1st July, 1946, was a special concession designed to mitigate the effect of applying United Kingdom Income Tax rules, instead of Indian Income Tax rules and to give the officers and other ranks concerned time to adjust their budgets to the new conditions. It was given only in those ranks where the net loss of emoluments would otherwise have been unduly sudden. The rates were on a diminishing scale and it was made clear in a statement by the Prime Minister in the House on 30th May, 1946, that the allowance would cease altogether on 31st March, 1950. In the circumstances I do not consider that there is any question of hardship arising on the cessation of the allowance.

Is not it a fact that when these transitional allowances were made it was expected that Income Tax would be reduced and various other expenses would be lessened for these people; and in view of that, will not the Minister reconsider this whole situation, because there is a very real grievance here?

I think the hon. Member has been misinformed. This was a special concession attributable to special circumstances relating to British officers in the Indian Army. It was made clear at the time the concession was made that it would be gradually tapered off and it is being tapered off, so that nobody can reasonably complain.

Is not that causing the hardship?

There are, of course, compensations on the other side in the way of a local overseas allowance.