BRITISH PARLIAMENT

Hokitika Guardian, 23 November 1928, Page 6

BRITISH PARLIAMENT

IN THE COMMONS

cable bill

(British Official AVireless.)

RUGBY, Nov. 21

Air Samuel (Financial Secretary to the Treasury) moved in the Commons the second reading of the Imperial Telegraphs Bill. He said the measure was necessary, for giving effect to the recommendations of the Imperial Wireless and Cable Conference. It authorised the sale to the Communications Company which was formed of Pacific Cable and Western India Cable and two trans-Atlantic Cables, which were now in possession of the Post-master-General. It also provided for a dissolution of the Pacific Cable Board, when the transfer, the undertaking for which they were responsible, had been completed. The Bill did not do away with the beam service. The three cable services had been very seriously affected by wireless and beam competition. The Pacific Cable was owned by His Majesty’s Government and Governments of Canada, Australia and New Zealand. The Cable was to he sold on the basis that Communications Company took over the loan capital debt and paid in addition a capital, sum .of £517,000,. which was divisible between the. partner Governments. The West Indian Cable was owned by Great Britain. Canada and some of the West Indian Islands. That Cable would be sold for £300,000. The remaining property of the Imperial Cables consisted of two cables across the Atlantic operated by the Post Office, one being the ex-German cable. They would be sold for £450.000. II the three properties were taken together the partner Government were relieved of a debt of £1,233,000 on loan debt, and besides received £1,207,000. Apart from that they were receiving an >annnal payment of rent in respect of the beam of £250.000 in cash and £OO.OOO in cash besides. Mr Bam.say .MacDonald (Labour Leader) - moved that this House declines to assent, to the’second readme of the Bill which sacrifices public utility to private gain by disposing of valuable State undertakings to private gain. LONDON", Nov. 21. Tn the Commons, Air Hardie who initiated the sale said in the Bill w<> have followed the trend of modern industrial and scientific discovery. (Ironic Labour cheers). The Conference was of the opinion it,, was impossible to continue cables in Severn l different bands as it was wasteful and uneconomic. The new plan would prevent overlapping and secure consumers economies and safeguards. Tt included an Empire Advisory Committee. Air MficDonald said the Bill’s introduction in a dying Parliament was a violation of constitutional practice. The Government was apparently . asking the House to sell communication 1, to a Company, but tin's was not a question of selling bankrupt cables, it was a question of high national Imperial policy, touching efficiency of Imperial ownership and control of essential services. The Conference was a more go-between of merger interests and Governments. The law had actually ibeon sold and thrown away. The key to the situation of the merger company was in no sense a public ut-iUtVs Did anyone ever hear of such a reason foi handing over fifty per cent above the standard income. The whole thing was absurd. The appointment of two directors to safeguard the public interest was a mere fraud and the imposition of an Advisory Committee had neither status, power nor position.

Air MacDonald asked would tin contract be laid on the table be Fore the signatures wore attached, so as the House could see whether the safeguarding would be carried out. T’ should lie examined by a Select Committee.

. Mr Walter Baker said that Labour’s case was that an International gam: of financiers have been working t. force Great Britain and tlic Domin ions to this policy.

APPROVAL OF BILL. ■ LONDON, November 22. Both the Conservative and Liberal press approve of the cable transfer. Editorials concentrate on the Socialist argument'that the merger ought to have been iir State onwership. The “Daily Telegraph” says: The fact that the merger is the outcome ol a conference representative of 'Britain and ! the Dominions and Crown Colonies is -sufficient answer to the Labourites theory that the Bill is the product ol an-international robber,gang- National ownership is impossible in the Empire, whose component parts will not accept the doctrine off nationalisation, which is fly-blown. The “Financial - News”, says: Mi MacDonald associates State enterprise as a guarantee of public utility. It is because -of evidence to the contrary that experiments such as the Imperial Communications Coy are necessary.