WIRELESS-CABLES MERGER BILL

Nelson Evening Mail, Volume LXIII, 22 November 1928, Page 5

WIRELESS-CABLES MERGER BILL

SECOND BEADING DEBATE

(British Official Wireless)

RUGBY, 21st November. Mr A. M. "Samuel, Financial Secretary to the Treasury, moved in the House of 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. If authorised the sale to the Communications Company, which was formed C'f the Pacific cable and the Western India cable and two transatlantic cables, which were now in the possession of the Postmaster-General. It also provided for the dissolution of the Pacific Cable Board when the transfer undertaking for which they were responsible had been completed. The Bill did not deal with the beam service. The three cable services bad been very seriously affected by wireless and beam communication. The Pacific cable was owned by His Majesty's Government and the Governments of Canada, Australia, and New Zealand. The cable was to be sold on the basis that the 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 Imperial cables consisted of two cables across the Atlantic operated by the Post Office, one being an ex-German cable. They would he sold for £450,000. If the three properties were taken together the partner Governments were relieved of a debt of £1,233.000 on loan debt, and besides received £1,267,000. Apart from that they were receiving an'annual payment of rent in respect of beam of £250,000 in cash.

Mr Ramsay MacDonald, Labour Leader, moved that the House declines to assent to the second reading of the Bill, which sacrificed public utility to private gain by disposing of valuable State undertakings to private interests.

Australian Pro«s Association.—United Service.

(Received 22nd November, 11.50 a.m.) LONDON, 21st November.

Mr Hardie, who initiated the sale, said: "In the Bill we have followed the trend of medern industrial and scientific discovery". (Ironical Labour cheers). The conference was of opinion that it was impossible to continue the cables in several different hands, as it was wasteful and uneconomic. The new plan would prevent overlapping and secure consumers economies and safeguards. It included an Empire advisory committee.

Mr MacEonald said the Bill's introduction in a dying Parliament was a violation of constitution at practice. The Government was apparently asking the House to sell the Communications Company a pup, but this was not a question of selling bankrupt cables. It was a question of high national Imperial policy touching the efficiency of imperial communications, ownership, and control of essential services. The conference was a mere go between of merger interests and the governments. The latter had actually been sold a pup and thrown away the" key to the situation. The merger company was in no sense a public utility. Did anyone ever hear of such a reason for handing over at SO per cent, above the standard income? The whole thing was absurd. The appointment of two directors to safeguard the public interests was a mere fraud and imposition. The advisory committee had neither status, power, nor position. Mr MacDonald asked: "Would die contract he laid on the table before signature was attached, so that the House could see whether safeguarding could be carried out?" It should be examined bv a Select Committee. Mr Walter Baker (Lab.) said Labours case was that an international gang of financiers had been working to force Britain and the ' Dominions to this policy. REPLIES TO QUESTIONS (Received 22nd November. 12.45 p.m.) LONDON. 21st November. In answer to a question Mr LoekerLampson, Under-Secretary for Foreign Affairs, said that the Government was consulting the Dominions on the question of the proposed Anglo-American Arbitration Treaty. The basis of discussions was that the treaty would follow the form recommended by the Imperial Conference of 1926. • The Postmaster-General informed Mr G I'ilchcr (Con.) that since 6th September, 1927. the beam services revenue was £440.000 or £166.000 after meeting charges ami interest. Mr Pilcher asserted that the country lost £15.000.000 on telegraphs and teleplumes in the last ten years, therefore he was -fad thai the cables and wireless were passing from the Government. Mr P. P. Malone (Con.) asked: Was !be rumour that Lord P.irkenhcnd would 1,,, clKtiriii.-.n of the new company true.

Mr (I. M. Gillelt (Lab.) said il was as absurd to hand over the cables and wireless as to hand over the navy to private enterprise. Sir John Gilmour, replying, said that members entered the conference without nnv prcohceived notions. He ••mpliasis'ed that while they were selling the cables, which were a Insim; proportion, thev were onlv leasing the beam wireless, whirl I W"".lcl' be W'irl "d in Ik." most economical manner. 'l'be advisorv committee, which would represent all the (Jovernnu-nts cimeerned. would have a conntleie veto on all increases ill rates if it' disapproved of I hem. He added that there would be British control and adequate safeguard of public interests.

The scheme would bring abo|i! more '••mid communications throughout the Empire. Replying to Mr MacDonald he said they would have to consult the dominions before they could say whether the contract would be tabled. The amendment was rejected bv 258 to 134, and the Bill read a second time.