Sir Eric Geddes: I do not think this Amendment really improves the wording. There is no intention of any subtlety in the words "income thereof." This question was carefully considered in Committee, and if it has no further import, I hope the proposal will not be pressed. Furthermore, if it has any bearing upon the next Amendment the Government must resist it.
Sir Eric Geddes: The intention was that the revenue basis should be taken on a comparison with the period preceding possession by the Government—that is, the pre-war period—and that seems to me to be the only fair comparison to make. If we were to adopt this Amendment it would mean that we would have to take the revenue for the two years preceding the passing of this Act. Whatever we wish to do in regard...
Sir Eric Geddes: I do not think so, because, owing to the War, the accounts were made up and the basis taken was 1913, and the agreement was to compare on the 1913 basis, and it is on the 1913 net revenue that we undertake to make good, so that the actual words would not apply. If there is any doubt as to whether the period is properly laid down, and I am told that it is, an Amendment can be introduced in...
Sir Eric Geddes: That is a point which no one here can decide. There are innumerable ways in which undertakings conceivably might be affected, and, therefore, it would only be a matter of bargain or arbitration. It would be equally unfair to deal with every undertaking on a pre-war basis.
Sir Eric Geddes: I think the right hon. Baronet has a little misapprehended what has been said. The Mover of the Amendment withdraws his Amendment, the Government undertaking to see whether the point raised is not clear, and, if it finds it is not clear, it will provide other words in another place.
Sir Eric Geddes: I beg to move, in Subsection (1), to leave out the words the natural growth of traffic on any railway belonging to a company which had not before possession was taken by the Government paid a dividend of four per centum on its ordinary capital, and in each case capital expenditure by the owners of the undertaking on any works brought into use in the interval, then and to insert instead...
Sir Eric Geddes: There are two points in this Amendment. One is that the State shall not have a claim for any enhancement of the value, either on capital or income basis, due to the natural growth of traffic. I confess I thought that when the Amendment was proposed it would probably be accepted by the right hon. Baronet (Sir F. Banbury), who speaks for the railway companies and who is chairman of one company...
Sir Eric Geddes: I quite understand my hon. and gallant Friend's point, but anything done under those powers would have to be by a specific Order. It would be quite impossible ever to keep track of your prospective liabilities if you were to be responsible for everything that every railway or dock or light railway servant did everywhere in the Kingdom whatever grade he was. So that anything that the Minister...
Sir Eric Geddes: The Amendment to this part of the Clause, which it is obvious from reading the Clause, was for protecting the Treasury, is, in the opinion of the Government, an improvement of the Clause. These words cannot, so far as I can see, and as I am advised, make the least possible difference to the railway company.
Sir Eric Geddes: These words were put in after a prolonged consideration and consultation between the Treasury officials and the Parliamentary draughtsmen with the very object of providing specifically for the point which my hon. Friend has in mind, that nothing whatever which is laid down by this Section shall in any way create a value which could be urged in enhancement of the price, which, if eventually...
Sir Eric Geddes: This is a matter upon which I personally have some responsibility. On the Second Beading of the Bill, as the right hon. Baronet has pointed out, I replied to a question, or in fact several questions, on that subject at the time when I was explaining that the Government had withdrawn the acquisition powers, as to what the position would be. At that time there were in the Clause which dealt...
Sir Eric Geddes: I would like to correct that, because it is so easy to get the wrong impression about shipping. We cannot carry on any services at all by sea unless a railway company has actually to-day the powers given to it by Parliament to run that service. You cannot run any coasting service.
Sir Eric Geddes: I do not think that would be the way to give effect to the proposal of the Government, because if the words which are proposed in this Amendment were inserted at the beginning of this Clause it would govern the working of transport services, and it is to work transport services that the Government wishes to seek the authority of the House.
Sir Eric Geddes: This is really a very serious point, having regard to what has been said in this House throughout the Debates on this Bill as to the necessity for doing something immediately to meet the needs of rural districts and housing. If we are to accept this Amendment it means that no transportation service can be established at all with a further vision than two years. Does any Member of this House...
Sir Eric Geddes: There are two points which have been raised, and my hon. Friend asks me to reply to the hon. Member for Newcastle. His fear is that this Transport Service Commission may be used to extend enormously services up and down the coast. I can only repeat what I have said several times already in Committee, and which will be found in Clause 22 of the Bill, the expression 'transport services by...
Sir Eric Geddes: I have the fullest possible sympathy with the Mover of this Amendment in his desire to obtain this division of the accounts of expenditure on the roads and auxiliary matters. At the-same time I hope he will not press the Amendment. There is power to-day to require a division of the account, and if there is not power when the Clause which I moved myself just now is passed by the House there...
Sir Eric Geddes: I entirely agree with everything that has been said by the Proposer and Seconder of this Amendment. I am advised by the Parliamentary draftsman that nothing in this Bill affects the Railway Companies Accounts Act at all, and that there is no power in this Bill to alter the provisions regarding those statutory returns. Apart from that, there is no intention of altering them, and, indeed, we...
Sir Eric Geddes: As the Leader of the House and my hon. Friend the Member for Twickenham have already told the House, this Clause formed the subject of discussion last night and this morning between the Government and those representing a large block of Members of the House. The Clause which my hon. Friend the Member for Twickenham read has been agreed between us, and is now submitted to the House. In order...
Sir Eric Geddes: I beg to move, after the word "Parliament," to insert the words including the Manchester Ship Canal but not including a harbour, dock or pier forming part of a railway undertaking.
Sir Eric Geddes: I think that owing to the short time that has elapsed since this Amendment has been put down, it may assist my hon. Friends opposite if I were to say a little about the effect of this Amendment on the docks. If this Amendment had carried with it an alteration in the position of the docks it would have prevented what I have said over and over again— certainly in Committee, and I think in...