Clause 2. — (Loans for Approved Colonial Development Programmes.)

Part of Colonial Development and Welfare Bill – in the House of Commons at 12:00 am on 25 March 1959.

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Photo of Mr Arthur Skeffington Mr Arthur Skeffington , Hayes and Harlington 12:00, 25 March 1959

I should like briefly to support the series of Amendments designed to give the Treasury and the Exchequer greater flexibility in regard to loans proffered under this Bill. If the Government are prepared to allow Exchequer loans only on the terms described in the White Paper, a good deal of the Government's financial proposals are not much more than a window-dressing.

In colonial matters, as in home affairs, unless we receive a more rational explanation than we obtained in the Second Reading, it appears that the Government have taken a definite political and philosophical decision to drive as much business as is possible to the London market and thereby to increase its profits. If that really is the case—and I shall be glad to hear that it is not—it will cause a great deal of cynicism in the Colonies about our alleged good intentions. That was the point that I thought the hon. Member for Liverpool, Wavertree (Mr. Tilney) overlooked in the argument he put before the Committee.

Why is it that the Government have taken the decision that Exchequer loans will be available only if there is evidence that the loan cannot be obtained in the City? Secondly, if those criteria are necessary, why have the Government made the conditions described in page 10 of the White Paper so much more unattractive and expensive, thereby adding to the financial burden of developing the territories? I sometimes wonder whether the acute financial difficulties of the Colonies that arise are appreciated by the Government. I know that they know the totals of the deficiencies in the annual budgets. I am not suggesting they do not, but I wonder whether they realise what cash shortage so often means in terms of human happiness and progress.

I want to give one example before I sit down. This does not affect a whole territory, but just one growing and expanding town with great potential. Having had the opportunity of going to Dar-es-Salaam, I am sure that those who knew the town will agree that that is the correct description of it. Recently, the trade union took a pay claim to arbitration. Very much to its surprise, it succeeded, but as a result I heard some very disquieting rumours. It was said that because the claim succeeded 200 people were to be dismissed. On 12th February, I put a Question to the Under-Secretary, who replied: I understand that a recent arbitration award will increase the Municipal Councirs expenditure by over £13,000"— which does not seem a very large sum— and this has led to some reorganisation of the services provided by the Council. While essential services are being maintained a reduction in others has compelled the Council to dismiss 73 men, and a further 65 will be dismissed in April…"—[OFFICIAL REPORT, 12th February, 1959; Vol. 599, c. 229–30.] What an astonishing conclusion to a successful arbitration claim! One hundred and thirty-eight out of work. This action may be due either to negligence or to the profligate nature of the city council. I do not know. However, I inquired whether the money could be advanced, and I was told that there was no way in which this sum could be made good within the territory. Accordingly, the men are being dismissed. We must think of this decision in terms of African morale, their belief in the real value of that arbitration principle and in trade unionism. The lack of such a small sum —£13,000—would sow seeds of unrest and doubt which would do untold harm to belief in constitutional processes. This situation has arisen because of the present inflexible arrangements. That is the sort of example which, multiplied a thousand times, can do infinite damage to the possibilities of the Commonwealth, and I hope that the Government will feel that their present schemes are too inflexible and that there is much to be said for the principle behind the Amendment.