House of Assembly: Vol45 - WEDNESDAY 24 FEBRUARY 1943

WEDNESDAY, 24TH FEBRUARY, 1943 Mr. SPEAKER took the Chair at 11.5 a.m. SUPPLY. †*The MINISTER OF FINANCE:

I move—

That the House go into Committee of Supply on the Estimates of Expenditure to be defrayed from the Consolidated Revenue and Railway and Harbour Funds, respectively, during the year ending 31st March, 1944.

It is self-evident that when a country is at war the compilation of a Budget grows more and more difficult every successive year. Not only are these new problems always coming up for consideration, but the task also becomes more and more complicated and the diversity of the points of view which have to be taken into account in a Budget speech grows continually greater.

So far as the complexity of my task today is concerned, I want to do all I can not to overload the House with figures, or unduly to try hon. members’ patience. Consequently, as I did last year, I have again collected a considerable number of the essential figures in a White Paper, which is now at hon. members’ disposal. I therefore propose dealing only in broad lines with the questions with which these figures are connected.

So far as the essential nature of the Budget problem at a time like the present is concerned, however, I want to make a few introductory remarks. It is well that hon. members should understand the foundation on which this Budget has been framed and is submitted to them. South Africa, in consequence of the decision of its Parliament, is at war today. This is a war touching the root not only of our political principles but also our way of life. This is a world war, a war of vital importance to humanity as a whole, but our freedom, our vital interests, are also at stake. Out of this war there will arise a new world just as a new world arose out of the Religious Wars of the 16th century, and out of the Napoleonic Wars. We don’t know what will be the shape of this new world. What we do know, however, is that we would prefer to see it shaped in accordance with our own way of life rather than the “Weltanschauung” of our enemies.

We have apparently come to a turning point in the war lately. We rejoice at the favourable turn of events. We believe that we are commencing to feel the refreshing breath of victory. The task still before us is a tremendous one. It will require all our energy, all our efforts, to achieve that victory. And that being so, knowing what is at stake, realising the great work still before us, we remain determined to carry on until the end, not to tire until the danger threatening our freedom has been removed and South Africa has made a worthy contribution to that victory. That, in truth, is the spirit in which I am submitting this Budget.

REVENUE ACCOUNT, 1942—’43.

The year which is now drawing to a close has again finished up much more favourably for us than we had expected. When I introduced the First Additional Estimates at the beginning of this Session my preliminary estimate was that, apart from the increase in our defence expenditure, we would close off the year with a favourable balance of £3,500,000 on our Revenue Account, and that, actually, was the amount which I asked the House to vote for that purpose. In the light of the figures which subsequently became available, I am now able to increase the figure of £3,500,000 by £1,420,000. The amount will therefore be just £80,000 less than £5,000,000. I am, however, not going to describe that as a surplus. At a time when we are forced to place large amounts to Loan Account for war purposes, there can be no question of a balanced Budget, and we have to regard a favourable balance on our Reserve Account as wiped out by the unfavourable balance on our Loan Account. What we can, however, rejoice at, is the fact that in spite of the large additional amounts which we have to find on our Revenue Account, such, as for instance, increased cost of living allowances, and subsidies for the fixing of the price of bread, we shall none the less, apart from the increased defence expenditure, at the end of this financial year be better off to the extent of £5,200,000 than we estimated when this House was prorogued shortly after the end of the financial year. At that time we expected a deficit of close on £300,000 for the year.

In regard to the manner in which this amount of £1,420,000 is to be applied, I want to state at once what we propose doing. I have already mentioned the possibility of our having to find more money for defence this year. I cannot say yet whether this will actually be necessary or not. If it is necessary, however, we shall have to use this amount for that purpose; if not, I propose following last year’s precedent and I shall propose that the amount be transferred to Loan Account.

I have referred to the favourable course of our financial affairs in 1942—’43. This has been principally due to the buoyancy of our revenue. Hon. members will notice that we now expect to collect nearly £13,000,000 more than last year. It is true that we levied additional taxes last year, but the amount is considerably higher than the estimated yield of those taxes. And this fact is all the more striking if we take into account the further fact that there has been a considerable drop in one of our principal sources of revenue. I refer to Customs Duties. Two factors particularly operated here—the reduction in the available shipping and the rationing of petrol. So far as the latter is concerned, one should not forget that our original estimate of what Customs Duties on petrol would produce amounted to close on £4,500,000. That amount will now have to be reduced by 25% for the year now drawing to a close. It will also be seen from the figures in the White Paper that the value of all goods imported as merchandise dropped from £101,000,000 in the calendar year 1941 to £84,000,000 in 1942. In passing, I want to refer to the encouraging fact that our exports, in spite of increased local demand for many of our products, still continue to rise. In consequence of the factors which I have mentioned, we expect a drop in our Customs Duty receipts as a whole of close on £2,500,000. Almost half of this shortfall, however, is made up by the increased yield, over our Estimates, of Excise Duties, especially on spirits, beer and cigarettes. It is rather striking that this year, for the first time in our history, Excise Duties will yield more than Customs Duties. This is an indication of the extra money circulating among the public, but in part also it is evidence of the progress made by this country. On Customs and Excise we shall be almost £1,300,000 short of our Estimates. The Post Office, however, is still doing very good business, principally also due to the increased amount of money in circulation. It will increase this amount by £315,000. There still remains a shortage of nearly £1,000,000. The excess of our inland revenue over the original estimate will not only wipe out this amount, but it will give us an additional £6,550,000. I do not propose at this stage elaborating the particular items which contributed to this highly favourable result. Hon. members have the necessary figures at their disposal and they will no doubt be interested to study them. What I wish to do, however, is to say a few words about the work of the Department of Inland Revenue because of the criticism which lately has so often been directed against that department. It is that department, particularly, which has had to deal with the new taxes that have been imposed in the last few years. It is self-evident that the work there is difficult and very extensive. The impression has, however, been created by the criticism that the Department is considerably in arrear with its work and that the collection of taxes is carried on in a most ineffective manner. The amounts which the taxes have yielded, however, serve as striking evidence of the incorrectness of such a contention. Moreover, I want to emphasise these further facts. In 1938—’39 the cost of collecting our inland revenue worked out at £.98 per cent. For this year it worked out at £.55 per cent. Over that same period our expenditure on salaries (apart from cost of living allowances) in that department increased by no less than £80,000 per year, while the collections increased by more than £50,000,000. Those figures speak for themselves.

I just want to revert to one point in regard to our revenue for 1942—’43. Hon. members will notice that the profits tax on immovable property will yield a great deal less than we estimated—£160,000 instead of £450,000. The reason is that the tax only applies to transactions where the immovable property last changed hands under an agreement entered into since the 1st October, 1939, and the number of such transactions in relation to all transactions has turned out to be very much smaller than we had expected.

LOAN ACCOUNT, 1942—’43.

I need not say very much about the Loan Account for the year 1942—’43. Here the improvement over our expectations is very much larger than it is as regards our Revenue Account. We started the year with an unexpected credit balance of close on £3,000,000. The revenue surplus for 1941-42 was £1,500,000 more than we had originally expected. Our estimate now is that we shall spend £3,600,000 less than the amounts voted by the House, and the amounts which we still have to ask the House to vote. And the amount of our revenue on Loan Account will probably be more than £3,250,000 over the estimate. Of that, nearly £400,000 has come in as a result of the increased demand for diamonds. The Land Bank will reduce its capital by £1,500,000, while the State Advances Office now expects to receive at least £2,150,000 instead of the estimated amount of £1,415,000 by way of capital repayments. The farmers, therefore, will have reduced their debt to the Government by £3,650,000—about £1,000,000 more than last year.

In the light of these figures I may at this stage summarise the position as follows: In spite of the increase in our defence expenditure from £72,000,000 to £96,000,000, the net amount which we shall have to borrow this year, namely £45,467,000 is not much more than the corresponding amount last year. And hon. members must not overlook the fact that this year we have spent more than £5,000,000 on the purchase of shares in Iscor and in the Industrial Development Corporation. But for these two amounts, the net increase in our debt is less than £40,500,000.

PUBLIC DEBT.

During 1942—’43 there was great activity in the work done under the Loan Vote. There were several new issues, which were characterised by their diversity—much was also done in the way of paying off existing debts, and large scale repatriation of our foreign debts is being carried on in co-operation with the Government of the United Kingdom. The details are set out in the White Paper. Consequently I need do no more than indicate the result of all these operations and then make a few comments.

I said that we would have to borrow a further amount of £45,467,000 this year. To that must be added £100,000 in respect of expenses in connection with Loan Issues. Consequently, our debt will increase by £45,567,000. That will cause the total figure on the 31st March to rise to an amount of £426,689,000, as against which we shall have £10,721,000 in the Redemption Fund. The net amount of our debt will therefore be £415,968,000.

Although our internal debt is increasing considerably, there is a great reduction in our foreign debt, the net amount of which on the 31st March will stand at about £16,750,000. This is principally due to the repatriation scheme to which I have referred, of which we shall, however, not yet have seen the full effect by that date.

I also wish to refer to the fact that there will be a reduction of about £700,000 in our temporary debt. This, however, is a net amount. It has been our policy to reduce the outstanding amount of Treasury Bills which are short term obligations. At the beginning of the financial year the amount was £30,415,000, a dangerously high figure. We expect to reduce that figure by £3,615,000. As against this, however, must be put an increase of £2,267,000 outstanding on Tax Redemption Certificates, a form of temporary debt to which the same objections cannot be raised. For the purpose of this calculation I have also regarded the Savings Fund Tax as a form of temporary debt. It is now expected to yield £1,020,000 this year of which part will be repayable before the end of the financial year.

I further wish to refer to the repayment of various bonds to an amount of £32,122,000, the details of which are set out in the White Paper. This principally is the result of the two repatriation schemes. We have also, however, availed ourselves of the opportunity of paying off certain bonds where, under the conditions of issue, we were able to do so.

The net reduction of our temporary debt and the repayment to which I have referred have had this result, that this year we had to find no less than £78,387,000 by way of Loan Issues. The various issues are indicated in the White Paper. They were all successful. The fact that it was possible to find such a large amount in South Africa in one year is unquestionably a very great achievement, and is evidence of the confidence which our financial stability creates among the public as a whole.

I even expect that that amount will be exceeded. It is quite possible that the 3 per cent. issue which is on the market at the moment (including the second issue of War Bonds) will yield more than the amount of £10,264,000 which has been indicated. In that event the additional amount will be available for further repayment of foreign debt.

Another striking feature is that a very large part of the amount I have mentioned has been lent by individuals who cannot really be looked upon as capitalists or well-to-do people. This applies to the large majority of people buying Union Loan Certificates—the amount for the year is estimated at £7,150,000 and also to people with accounts in the Post Office Savings Bank where the net increase of deposits will probably amount to £8,850,000. This also applies to many of those who will have bought Savings Bonds to an amount of £2,644,000 and War Bonds to a probable amount of close on £10,000,000. The figures I have mentioned are impressive. They indicate the great degree of success which has crowned the thrift movement. They also indicate the great increase in the number of people who can be described as shareholders in the State. The interest which we pay out on our Public Debt now remains almost entirely in our country, and the amount going to the poor man and the middle-class person is getting larger and larger. All this serves to strengthen and to stabilise our financial position, and to strengthen the position of our people as a whole.

Of the amount which we have received close on £100,000 has been lent to us free of interest—a great deal more than last year. This is largely due to one large contribution of £20,000 which was emulated by others. I wish to avail myself of the opportunity to express our sincere thanks to the subscribers of the non-interest bearing loan.

BANKING.

Nothing is more indicative of the strength of our financial position than the facts in connection with our banking system.

The gold reserve in the possession of the Reserve Bank, together with the gold premium paid on gold purchase, has, during the calendar year 1942, increased by £64,339,000, and the bank’s foreign exchange by £573,000. This increase is attributable to a number of factors. Imports have dropped considerably, while a considerable proportion of the imports of 1942 had been paid for in 1941. Foreign Governments spent large amounts of money in the Union, and the increased price of wool and other export goods and the drop in dividends and interest payable outside this country, caused a reduction in the demand for foreign exchange.

The drop of £18,000,000 in discounts, advances and investments of the Reserve Bank is principally due to the Government’s policy to withdraw redundant funds from circulation by using those to buy and to cancel repatriated bills from the bank.

Bank notes in circulation increased by £9,500,000, and the coinage in circulation also increased considerably. This testifies to the large amount of cash money required in consequence of the high degree of activity prevailing throughout the country.

The cash reserves of the commercial banks have increased by £49,000,000, and their liability to the public by £50,000,000. The proportion of cash reserves to liabilities is now 52½%, an unprecedentedly high figure. Their advances and discounts have dropped by nearly £5,000,000. A satisfactory sign also is that their surplus funds are being-saved either in the Reserve Bank or in easily negotiable investments. They will, therefore, when it becomes necessary, be able to make money available without inconvenience to their debtors, or to themselves. Their conservative policy is a source of strength for the future.

The bank credit which came into being in 1942 was not created by the commercial banks. It was principally due to the fact that the Reserve Bank, by the purchase of gold, created more credit than it cancelled by the sale of foreign bills or by the purchase of foreign bills from the Union. The bank’s strong gold position remains a guarantee of a buoyant financial system for the Union’s trade and commerce.

THE ECONOMIC POSITION.

The characteristic trait of the country’s economic position can be summarised in a few words: Increasing quantities of money, decreasing stocks of goods. This also is characteristic of the whole world — of countries which are at war and also of those few countries where an uneasy peace still prevails.

Such a position encourages extravagance and carelessness. Humanity is all too prone in such a time to imagine that it will never again be short of money. Experience in the past has taught the very contrary. The citizen of the State should always bear this fact in mind as a sort of “memento mori.” The superfluous money of today should be carefully guarded and saved so as to alleviate as much as possible the unavoidable setback.

Under the pressure of the World War we have been forcibly compelled to change many of our habits. We should also change the habit of freely spending available funds. I have already referred to the pleasing fact that the farming population is paying off its debts on a large scale. On the other hand, however, we notice that many townspeople and some farmers, too, are buying farms and houses at exhorbitant prices. This is an unhealthy development which undoubtedly will produce bitter results.

Some people regard this as a precautionary measure against a depreciation of money. The degree, however, to which money is running the risk of depreciating in value in future is the degree of the destruction of usable goods—houses, factories, ships, stocks—which is the corollary of every war. The community has to pay for these things. That is an inexorable law.

In the last war many people evaded their share of that burden by converting their money into fixed property. They deliberately sacrificed part of their money in advance in order to be able to retain the balance. The portion which they sacrificed often was smaller than their legitimate share of the war burden. Many imagine that they can do so again. It is quite likely that they are going to find that they have been mistaken.

Humanity has learned from previous experience. The quarter of a century between the two wars has proved clearly that if such a heavy burden as war destruction presses unequally on the different sections of the community, it becomes much too heavy for that portion on which it bears most. It dislocates society. The State therefore cannot in future in its taxation policy ignore those who now already are makingplans in anticipation to avoid their liability.

I commend this consolation to our land and other speculators of today.

ESTIMATES OF REVENUE, 1943—’44.

So far I have dealt with the financial activities of the year 1942—’43 which, as we have noticed, is drawing to a favourable close. My task so far as the year before us is concerned is a less pleasant one. There are unavoidable circumstances which will cause our expenditure to rise—other circumstances again which will cause certain sources of revenue to drop. Whereas for the current year our total income will be £94,480,000, that figure will have to be reduced to £91,026,000 for 1943—’44 although even that is still £3,000,000 higher than our original estimate for the current financial year.

Hon. members have before them the details in regard to those figures. I only have to make a few explanatory remarks now. The factors already mentioned by me which will cause our customs revenue this year to go down by nearly £2,500,000 only came into full effect during the latter part of this year—but we shall have to take them into account for the whole of the year 1943—’44. Consequently, we cannot put the customs duty figure at more than £7,025,000. It is expected, however, that excise duties will enable us to regain part of our lost ground again, and that our customs and excise receipts altogether will not be more than £605,000 below the revised figure for the current year.

We also again depend on this amount being reduced by an increase in post office revenue—an increase which I estimate at £200,000. I expect that this department will next year reach the £8,000,000 notch.

It would however be too optimistic to expect as much from Inland Revenue as in 1942—’43. Here we particularly have to take into account a drop in our principal source of revenue—the gold mines. Increased working costs and a shortage of labour, are the principal factors responsible for this. Consequently, we shall be drawing from this source (normal tax and special contribution together), about £2,200,000 less than the amount appearing on our original estimates for 1942—’43. In regard to the Income Tax payable by individuals and companies we shall be better off than under our original estimate but worse off than under our revised estimates. We have to take account of the reduction in stocks and other influences which are at present restricting trade, while a reduction in gold mining dividends lead to a drop in the yield of the Super Tax. The last mentioned factor also contributes to a reduction in the estimated receipts from the taxation of foreign shareholders. On the other hand, we anticipate an amount of over £1,000,000 more from the special tax on working profits. This is purely due to the fact that for the first time next year this tax will be in operation for a full year. In 1943—’44, also, we shall for the first time have the full benefit of the increased death duties. We expect that other sources of revenue will remain more or less stable. From the South African Reserve Bank, from Iscor, and from the South African Mint, we shall in the same way as this year receive considerable amounts on our Revenue Account. We also again expect an amount of £200,000 from South-West Africa as a contribution to our war expenditure from the additional tax which is in operation there now. In this connection I should like to express my appreciation of the attitude of the Legislative Council in that country.

On the existing taxation basis therefore we may expect to collect £91,026,000 in 1943-44. This amount includes £230,000 as the yield of the l/6th of the native tax which still comes to us. Hon. members are, however, aware of the position in regard to native education and they are aware of the fact that the means at the disposal of the Native Trust for this purpose are far from adequate. Those means have to be increased. We propose to hand over the remaining sixth part of the tax to the Trust. That will leave us with £90,796,000.

ESTIMATES OF EXPENDITURE, 1943—’44.

The Estimates of Expenditure for the ensuing year, which have been laid on the Table of the House, show that we are asking the House to vote £52,240,500 for all services except Defence. This amount compares with the amount of £48,450,260 which was voted by Parliament last year for the current financial year—an increase, therefore, of £3,789,880. A large part of this amount, however, is represented by increased cost of living allowances to officials. For this purpose the provision made is £775,832 more than on the Main Estimates for 1942—’43. A second large increase in on the Pension Vote, which is increased by £1,134,000. War Pensions cost £731,400 more, principally as a result of the increases provided for in the War Pensions Act, which we passed last year, while we also have to provide an additional £289,000 for old age pensions, and an additional £100,000 for pensions to war veterans on the present scale. Then there is an increase of £617,400 on the Vote, Public Debt, which, however, is a lower figure than most of us probably expected in the circumstances. We also have to bear in mind the expansion in the activities of several Government departments. As an instance, I want to mention the Post Office which, as I have already said, will probably earn £8,000,000 for us in the coming year. It should not be forgotten either that this is a vote on which increased cost of living allowances from the very nature of things have a great effect. The increase in these cost of living allowances is £456,800.

To the figure of £52,240,500 which I have mentioned an amount still has to be added for Defence. We again propose to provide the requirements of the War Expenses Account again partly from Revenue Account and partly from Loan Account. It is still just as difficult as it was in the past to make any accurate estimate of Defence expenditure in present circumstances. During the current financial year, unexpected events caused our expenditure to exceed our estimates very considerably. For the year 1933—’34, with all due modesty, I placed the figure at £96,000,000. Of that we hope to be able to find £48,000,000 on Revenue Account. In the Estimates, as originally laid on the Table, the amount was put at £40,000,000. When the Estimates had to go to press, it was not possible finally to determine the figure, and consequently last year’s figure was only used preliminarily. I propose, however, to replace the particular page by a new one which I have laid on the Table today.

The total estimates of expenditure as at present before the House, therefore, amount to a sum of £100,240,500. There are certain further amounts, however, which the Government is prepared to add to this total.

GOVERNOR GENERAL’S NATIONAL WAR FUND.

The Rt. Hon. the Prime Minister recently made a statement that the Government was backing up the Governor General’s National War Fund. That has always been the Government’s attitude so far. We feel, however, that the time has now arrived for us to ask Parliament in a concrete form to give its support to this promise. We have also been influenced in arriving at that decision by a resolution by the Select Committee on the pay and allowances of soldiers, of which we have been informed by the Chairman of that Committee. In that resolution the opinion is expressed that we should in future make contributions to the Fund on a £ for £ basis; we have, therefore, decided to propose subsidising in the new financial year all contributions received by the Fund on that basis. At the end of the year we shall consider the matter further in the light of circumstances then prevailing. The Committee of the Fund will, in view of the Fund’s financial position, not require the amount of the subsidy for immediate use. Provision has, however, to be made for post-war requirements. We therefore propose to give the Fund bills for the amount of the subsidy on conditions which will be laid down in consultation with the Committee. I estimate the amount which will be required in 1943—’44 at £600,000. The necessary financial provision will therefore be made on the Loan Estimates, although I hope that according to circumstances we shall be able to repay Loan Funds from Revenue Funds.

I feel that this proposal will have the approval of this House and of the public as a whole, and that voluntary contributions to the Fund will be encouraged thereby.

SOCIAL WELFARE MEASURES.

The Government has been doing its best all the time in spite of the pressure of war conditions to find money for the extension of social services. Our object is to take further important steps in the direction of social security. The House is aware of what we have done in order thoroughly to investigate this matter, and it is also aware of the recent appointment of a Committee which has been instructed to submit concrete proposals.

The wish has sometimes been expressed that we should even now come forward with the first instalment of a Social Security Scheme. People, however, do not seem to realise the fact that a complete system of social security naturally brings with it a considerable revolution in our social structure, and that it is therefore difficult to offer an instalment before we have arrived at a degree of clarity as to all the changes which will have to be made. It should also be remembered that Social Security cannot be entirely financed from the sources of our present taxation system. Contributions will also have to be made by as many as possible of those who will benefit from such Social Security, either by means of a special levy on all incomes as is done in New Zealand, however small such incomes may be, or by some other means. We are not yet ready for such a change and it also appears that we cannot expect the reports of the Committee to which I have referred before the end of this session. Circumstances therefore make it impossible for us to do anything at the moment in regard to old age pensions or other similar parts of a Social Security system. We agree, however, that more will have to be done than we are doing at the moment, especially for the care of old and physically unfit persons.

There is something which we can do now, however—something from which we may expect far-reaching benefits, and here we have decided to act now. It will be a measure for the good of the children. The Minister of Social Welfare has drawn our attention particularly to the desirability of combating malnutrition among school children. In several Provinces there are in existence today schemes for the feeding of school children. Good work is being done but further expansion is handicapped by lack of funds. The Provinces are of opinion that while they are interested in the matter from the educational point of view, it is more a problem of social welfare than of education. So far as the Government is concerned, it is contributing by means of the milk and butter scheme for school children. That scheme was primarily introduced as a means of reducing surpluses. It would definitely be better to regard it as a means of combating malnutrition, but it should not be confined, as is the case today, to milk and cheese. What we propose doing is to use the present dual system as our basis and to extend the scheme of feeding the school children. The object of the scheme will be to provide at least one meal per day to all school children, irrespective of race or colour; this will be done partly at the expense of the State and partly at the expense of the Provinces, though mainly at the expense of the State. We believe that a fair basis of financial support will be for the Treasury to pay two-thirds of the cost of the meals, and 50 per cent. of the non-recurrent capital expenditure.

The scheme is an ambitious one and the details, of course, will have to be worked out in consultation with the Provinces, after which they will have to be submitted to the Government for approval.

What the eventual expense will be cannot be determined with any degree of certainty, but it will definitely not be less than £1,000,000. It will, of course, take time to develop. In the first year we do not expect that it will cost us more than £200,000 of which we already have £150,000 on the Social Welfare Vote in connection with the milk and butter scheme. An additional amount of £50,000 will therefore have to be provided. I want to supplement this slightly—also in the interests of our children. A large number of the children committed under the Children’s Protection Act are looked after by private institutions, orphanages etc., which then receive a per caput subsidy from us. Many improvements are necessary in connection with these institutions, but in view of the financial position of the governing bodies it has been found difficult to bring about those improvements. We propose placing a special amount at the disposal of the Department of Social Welfare which will be used towards the encouragement of such improvements. The Department is asking for £20,000 for the ensuing year. I expect that more money will be required later on. The figure in any case will never be a very substantial one. We are dealing here with a limited number of children, but I expect none the less that this small expenditure will produce good dividends.

FURTHER PROPOSALS FOR INCREASED EXPENDITURE.

We have a few other proposals to place before the House, which will involve increased expenditure.

The first is in connection with war veterans. After many years of procrastination this Government in 1941 inaugurated the pensions for war veterans. This was done on the basis of a report by an interdepartmental committee which proposed a scheme in the form of war pensions paid to beneficiaries before reaching the age at which they would ordinarily be entitled to such old age pensions. We accepted that recommendation. Since that time strong representations have been made to the Government, both inside this House and outside, for an improved system. The Bond of Oudstryders submitted proposals to me which would involve an additional expenditure of more than £2,000,000, but other people were not even satisfied with those proposals. It will be clear to the House that we cannot possibly provide such a large amount of money for a comparatively small number of people.

*Mr. C. R. SWART:

Why not?

†*The MINISTER OF FINANCE:

My hon. friend did not provide anything at all. It should also be pointed out that in other countries where schemes of this kind are in existence the pension scheme for war veterans, in the same way as here, is linked up with the old age pension scheme, also as regards the provision of a means test. It would therefore not be possible to depart from that principle and as, for the reasons I have mentioned, changes cannot be made at this stage in the War Pensions Scheme, we cannot do much in this connection. As a concession, however, and as evidence of our goodwill to a section of the population who have served their country on the battlefield, we are prepared, pending the consideration of the wider aspect of the matter, to increase the pensions payable on the present basis by one-third as from the 1st April. 1943. That will cost us £80,000 per year.

There is another class of persons on whose behalf representations have been made to us. I am referring to our civil pensioners who are in receipt of fixed amounts from the State and on whom the increased cost of living in certain cases at any rate falls very heavily. It has, therefore, been urged that we should pay them a cost of living allowance, just as we do in the case of civil servants. The Government’s attitude on this matter has been explained repeatedly. The pensions that are paid are laid down by law, and in most cases on the basis of contributions made during the years of service of the official concerned. Although we can reduce the salaries of our public servants, we have not got similar powers in regard to pensioners. In the event, therefore, of an increase in the purchasing power of our money, the Government would not be able to pay these people less than is laid down by law. Consequently they cannot demand, as a right, that because of the drop in the purchasing power of our money we must now pay them more. We should also bear in mind the fact that many pensioners have other sources of revenue, and that many of them today are again occupying lucrative positions. In regard to those who are not in that position they are to all intents and purposes in the same position as others with a fixed or even with a smaller income—people who are not drawing any pensions.

We are, however, bearing in mind the fact that these people have served the State and that many of them today are financially embarrassed. I feel that the State, as the former employer of these people, should be prepared to assist in hard cases, which, as a matter of fact, is already being done by the Railway Administration. This, however, can only be done ex gratia and it cannot be looked upon as something to which these people are legally entitled. With this object in view, we are prepared to appoint a special committee to go into hard cases and to make recommendations to us for ex gratia grants. I expect that for this purpose we shall have to find an amount of £50,000.

There is one point left under this head. The Minister of the Interior recently issued a statement on behalf of the Government in regard to our Civilian Protection Services, and he mentioned the fact that I would make a further statement about the financial side. Our attitude generally in regard to this matter has always been that services of this kind are of a nature for which local communities, whose interests are primarily served, should bear the responsibility. The responsibility of the State is primarily for the general defence system. The State, particularly of late, has been spending large amounts of money on defence works, especially in the coastal areas, in order, as far as possible, to guard against the danger of an enemy attack on our towns and villages. In comparison with the amount spent for those purposes, the amounts which the local authorities have had to find are comparatively small. The Government realises, however, that those amounts have lately increased considerably and that from the point of view of the local authorities themselves they are not insignificant. The Government appreciates the work that is being done, and considers it is important that it should be continued. For that reason it has been decided to place £100,000 on the Estimates for 1943—’44 for these services. The major portion of this money will be spent in respect of expenses already incurred by local authorities, and a committee will be appointed to go into the details of such expenditure, to consider to what extent such expenditure’ has been necessary, and then to submit recommendations for the making of grants. In future, subsidies will be paid on a £ for £ basis on expenditure incurred by local authorities for Civilian Protection Services, which have had the prior approval of the Department of the Interior.

I have mentioned several points which will involve an increase in our expenditure on Revenue Account. The total amount is £300,000. As a result, our estimates of expenditure will increase to £100,540,500. To cover that expenditure we have, as I have already indicated, available an amount of £90,796,000. There is therefore left an amount of £9,744,500, which we shall have to find.

LOAN ACCOUNT, 1943—’44.

Before I proceed to deal with our proposals in this connection, it is convenient that I should say a few words about our Loan Account. From what I have already said, it is clear that £48,000,000 has to be placed on that Account for defence purposes, and £600,000 for the Governor-General’s National War Fund. But in addition to that there are still the ordinary capital services, for which provision has to be made on this Account, Railways and Harbours, Public Works, Posts and Telegraphs, Settlement, Irrigation, Housing Loans, the capital programmes of the Provinces, loans to the National Roads Board, etc. To these must be added further amounts which have to be voted for Iscor and for the Industrial Development Corporation. The Loan Estimates have not been finally compiled, but our requirements for these services will definitely be not less than £15,000,000. The total amount, therefore, is £63,600,000. As against this we can estimate the ordinary receipts on this Account at £8,400,000. We are therefore faced with the fact that we shall have to find an amount of about £55,000,000.

THE FINANCING OF THE DEFICIT.

The borrowing of this amount in South Africa in one year, however impossible it might have sounded a few years ago, will in the light of present conditions, and going by our recent experience, not cause us any difficulty. There is, however, another side of the matter which definitely is no less important. Interest has to be paid on that amount, and our policy for the future has to take into account the interest that has to be paid. Great expectations are cherished in connection with Social Security. The more money we now have to borrow the more difficult will it be to satisfy those expectations. Let me put the position in a concrete form. For every £1,000,000 which we are borrowing now we shall in future have £30,000 per year less for Social Security. This is a matter which should give us cause for thought. We have taken this fact into account in the consideration of proposals which would involve higher expenditure. That fact we also have to bear in mind when looking at this deficit of £9,744,500. If anyone were to ask me whether we could not also borrow this additional amount my answer would have to be “yes”. We can find the money without additional taxation, but we would be very gravely lacking in our duty if we followed that course. We would be imposing unnecessary burdens on those coming after us. We would not be making proper use of the best means of preventing inflation, namely taxation. We would also be frustrating our own aspirations for the future. Having gone as far as we have done in the imposition of taxes over the past few years our sense of duty and our courage demand of us to lay this down as our object, that an amount of this kind must again be found by means of taxation. I know, however, that I am not under estimating the courage and the sense of duty of members of this House, nor the willingness of the public to follow the right course in regard to this matter.

NEW TAXATION PROPOSALS.

Where such a large additional amount has to be found, it is almost self-evident that we should try and spread the burden over as wide a field as possible, it is almost self-evident that our proposals have to cover a wide field, and that we shall have to go to all the categories of our taxation system in order to find contributions.

CUSTOMS AND EXCISE.

First of all, therefore Customs and Excise: On this occasion no additional tax on petrol is proposed. We are going to confine ourselves to what I called “voluntary taxes” on a previous occasion. In other words, the smoker and the drinker will be given the opportunity of contributing even more than before to the Exchequer.

In the first place I propose an increase in the Excise on spirits (including potable Natal spirits) calculated in such a manner that the price per tot will go up by 1d. An increase of 10s. per gallon works out at a little less than 1d. per tot—I therefore propose such an increase—which will yield £1,400,000, and also as a natural corollary an increase of 30s. per gallon in the Customs tariff on imported whisky, brandy, rum, and gin, which will perhaps yield another £50,000.

So far as the local product is concerned I regard this tax as fully justified. For the time being the competition, with which the local product usually has to contend, has disappeared to a large extent. The demand is continually growing. There is no reason whatsoever to expect that the producer will suffer as a result of this tax.

Beer, too, must contribute its share. Here I propose that the Excise on ordinary beer be increased from 1s. 9d. to 2s. 9d. per standard gallon—which works out at less than 1d. per pint bottle—and on the so called “tickey” beer from 1s. to 1s. 6d. per gallon. From this increased tax we expect to receive £605,000. So far as wine is concerned, the hon. member for Kensington (Mr. Blackwell) and myself will still have to pay the same amount.

So far as the smoker is concerned I have two proposals to make here as well. Last year we levied an Excise Duty of 6d. per 1 lb. on cut tobacco. As I expected, this very small tax did not handicap production and we expect to collect the estimated yield of £300,000. We are proposing to double this tax, so that we shall receive an additional £300,000 from it.

The cigarette smoker, however, is able to make a very much larger contribution to the Exchequer. Here we propose to increase the tax on the basis of 2d. per 50 cigarettes, from which we should then get an extra £1,000,000. At the same time it has been decided, after consulting the manufacturers of cigarettes, to introduce a change in the present basis of taxation. This will remove a difficulty which has arisen on account of the decision that only packets of 50 cigarettes can be packed.

The new basis, which will not result in any great change in the yield from the tax, is reflected in the notice of motion which I propose giving. At the same time the provision now in force under which an extra charge can be made for the privilege of selling cigarettes from broken packets, will be withdrawn.

It has also been agreed that in normal times cigarettes will only be packed in packets of 10, 20 or 50. As to the extra tax of 2d. per 50 cigarettes, it has been arranged with the Price Controller that this amount can be added to the price payable by the consumer.

*Mr. C. R. SWART:

What about profits?

†*The MINISTER OF FINANCE:

There will be no additional profits. As we are producing increased Excise duties on beer, tobacco and cigarettes, it will be necessary also to increase the Customs duties. The increase in revenue resulting from this will, however, be insignificant under pervailing conditions.

The increased Excise and Customs duties which I have mentioned are therefore expected in a full year to yield jointly an amount of £3,355,000.

The necessary notice of motion in this connection will be laid on the Table of the House today, and in accordance with the law the new taxation scales will come into force immediately.

We may expect in the course of the current financial year to collect an amount of £125,000. That will further increase by that amount the favourable balance which we expect on the 31st March. We propose to transfer that portion of the balance to the Revenue Account for 1943—’44.

Our proposals in connection with Customs and Excise duties will therefore yield us a total amount of £3,480,000 in reduction of our deficit.

POSTAL AND TELEPHONE REVENUE.

We shall also have to try and find additional revenue through the Post Office. As it is our policy to spread the additional burdens over as wide a field as possible there is no alternative course to follow. In 1940 we raised the postal rates on letters from 1d. to 1½d. We cannot leave the postage at that figure any longer. We therefore propose to add a further ½d. In consequence inland postage will be 2d. for the first ounce, and foreign postage, so far as the African postal Union is concerned, and the British Commonwealth of Nations, will be 2d. for the first half ounce, as from the 1st April. The inland postage on postcards will also be increased from ½d. to 1d. The tariff in regard to accounts and commercial documents will remain unchanged. I expect our Revenue to increase by £350,000 as a result of these increased rates.

Under present circumstances one can also reasonably expect the telephone service to contribute an additional amount. In this connection it is not proposed to alter the fixed tariffs, but only to make a surcharge of 12½ per cent. on all telephone accounts. This is expected to yield £343,000. At the same time, however, we propose granting a concession which has been under consideration for a long time, and that in the form of a change in the tariff for farm telephone lines. This at the same time will simplify the present tariff and give a certain amount of relief to subscribers, especially to those who are connected with postal agencies and railway stations. This change will cost £8,000, leaving therefore a net amount of £35,000.

I therefore estimate the yield from increased postal and telephone tariffs at £685,000.

INLAND REVENUE—PROPOSED AMENDMENT OF THE LAWS.

Now, I come to Inland Revenue. This is our principal source of revenue—and this will have to produce the biggest contribution towards covering our deficit. In order to make this possible we shall have to apply a fairly general increase in our existing taxation scales. We are also proposing a new tax.

Before proceeding, however, to describe our proposals in this regard I wish first of all to say a few words about intended changes of a different nature in our taxation laws. Without departing from the principles underlying our taxation legislation we intend proposing certain amendments this Session. We shall do so principally as a result of the experience we have had in the administration of the special tax on working profits, the personal and savings fund tax, and the profit tax on immovable property—all new taxes which were introduced last year—and also of the Normal, Super and other taxes which are levied under the Income Tax Act of 1941.

The main object of these amendments will be to facilitate the administration of the Laws concerned, and to give better effect to the objects with which these laws were introduced. It was to be expected that anomalies would be discovered in the new taxation laws, and also that means would be found to avoid them. Instances of this kind, however, have not been as frequent or as serious as would appear from the criticism which we sometimes have to listen to. Where it has been found that the taxation burden falls unfairly and unnecessarily on people we want to alleviate that burden as far as we possibly can. On the other hand, where people who should pay, escape the object of the law, we want to deprive them of any further opportunity of doing so.

One of the amendments which I shall propose contemplates exempting from normal tax uniform, ration and lodging allowances to our soldiers. I feel very definitely that that will meet with hon. members’ approval. This concession will apply to assessments made on incomes for the year 1942—’43.

We also want to introduce amendments to the provisions of the law regarding the taxing of the incomes of private companies. Under the 1941 Act the shareholders receiving these incomes are the ones who are taxed in the main. The Commissioner, however, has the right in specific circumstances to tax the companies themselves. It is proposed to give him the same right in regard to private companies with large numbers of preference shares, in respect of the incomes which otherwise would have to be divided among the preferent shareholders for taxation purposes.

A further proposal relates to the right which shareholders have at present of charging against the company portion of the tax which they themselves pay. In practice it has been found that the existing provisions are sometimes not fair to the minority shareholder. We therefore propose to make concessions in three respects. At the present moment only normal and super tax are chargeable. To this we are going to add the Provincial income tax, and that portion of the personal and savings fund levy which represents taxation. We shall then give the taxpayers the right to place on the company the liability for the whole amount of the tax owed by him on that portion of the income of a private company which is not paid out by way of dividend. At the moment he can sometimes only do this in respect of a portion thereof.

And thirdly, the company will lose the right, which it has at the moment, of recovering out of future dividends the amounts which are demanded from them on behalf of the shareholders.

I want to add this. Generally speaking I regard the new system which was introduced in 1941 in connection with the taxation of private companies, as fair and sound. I can also state that we have achieved the object which we had in view. It was unavoidable that in carrying out the scheme difficulties would be met with in connection with the system. The amendments which I have mentioned will, however, remove those difficulties to a very great extent.

We also intend proposing certain amendments to the Excess Profits Tax. The most important of this amendment aims at making special concessions to new concerns for the development of strategic base minerals. We expect that as a result the Government’s general policy to encourage the development of base minerals will be effectively promoted.

INLAND REVENUE — NEW TAXATION PROPOSALS.

And now I come to our proposals for increasing the revenue under the heading of “Inland Revenue.”

In the first place, we propose to raise the income tax of companies. For the last two years the scale of taxation on companies (apart from mining companies) has been 3s. 6d. in the £. We feel that this can now be increased to 4s. in the £. This will yield £1,300,000 per year, although we cannot expect to collect the full amount in the first year. We do expect, however, to get in £1,030,000.

The time has also arrived for an increase in the Excess Profits Tax, which for the last two years has stood at 13s. 4d. It would not be in the general interest to raise the scale of this tax too high. It would, in the first place, weaken the spirit of enterprise and the initiative on the part of business men and industrialists; it would also promote waste of money at the expense of the State. That does not mean, however, that the scale cannot be raised to a level higher than 13s. 4d. We consider 15s. to be the right figure in all the circumstances. That will produce £1,100,000 in a full year—£825,000 in 1943—’44.

When the ordinary tax on companies and the Excess Profits Tax also is raised the question of an increased gold mining tax must necessarily also arise. As hon. members know, a special contribution has been paid by the gold mines since 1940. The scale first of all was 9%, then 11%, then 16%, and since last year it has been 20%. We have to take account of the fact that the profits and the dividends of the gold mines have lately been dropping fairly fast. To a large extent this is due to increased working costs. Difficulties in connection with stocks, the restriction of new development, and lately the shortage of labour have also contributed. In 1940 the working profits amounted to £47,525,000. In 1941—£45,845,000; and in 1942—£43,655,000. The fact that according to our estimates there will be a reduction of £2,000,000 for 1943—’44 in the yield of our taxes on the gold mines indicates that there will be a further drop this year in their working profits, a larger drop still than in the years I have mentioned. In spite of this, however, we feel that under present conditions we should also expect something more from the shareholders of the gold mining industry by way of taxation. We therefore propose the increase of the special contribution from 20% to 22½%, which will yield £910,000.

And after gold, we come to diamonds. The ordinary tax on diamond mining companies has for some considerable time stood at a notch 6d. higher than the tax on other companies. It is therefore almost self-evident that we shall also have to raise this by 6d. per pound, which will bring it to 4s. 6d. In 1940 also we raised a special contribution on diamond mining companies amounting to 2s. in the £, calculated only on the profits arising from their diamond mining operations. We now propose raising that scale to 3s. in the £. These two increases together will yield £135,000.

And now I come to the tax on individuals—normal tax and super tax, in which I include the super tax on private companies insofar as that tax is still payable. The time has arrived also to make bigger claims on the taxpayer here. We do not want to make any change in the general scale which was laid down two years ago. It is a fair scale, and it is a scale which is reasonable for ordinary times. But where at the moment more money is required, the best way of obtaining this additional money is by means of a surcharge on the tax as calculated according to that scale. We propose a surcharge of 15% on normal and super tax. This will yield in a full year £830,000 from normal tax and £710,000 from super tax. In 1943—’44 we expect £950,000 from the two sources together. As a result, however, of the increased Excess Profits Tax, the amount subject to normal and super tax will be reduced. This will involve a drop of £150,000 in the yield. There is, therefore left a net figure of £800,000.

The fact that the same surcharge of 15% is applied to the small taxpayer, as well as to the large one, may perhaps lead to misunderstandings. It does not mean, however, that the additional tax will be on the same scale for everyone. A married man with two children and an income of £500 today pays normal tax of 5s. 9d. and he will have to pay a surcharge of 10d. Where the income is £600 the normal tax is £6 19s. 11d., the surcharge £1 1s. and the scale therefore less than ½d. in the pound. Where it is £2,000 the normal tax is £109 13s. 2d. and the surcharge £16 9s., that is to say almost 2d. in the pound. If the income is £5,000, the normal and super tax are £905 0s. 2d., and the surcharge £135 15s. that is to say almost 6½d. in the pound.

This surcharge, of course, will not be included in the calculation of the Provincial income tax.

One should not lose sight of the fact that in South Africa no unmarried person with an income of less than £300 and no married person with an income of £345 is subject to income tax. Last year I pointed out that in Australia income tax starts being payable on an income of £157 while in New Zealand every income without exemption is subject to a national security tax of 1s. in the pound. In the meantime the 1s. scale in New Zealand has been increased to 1s. 6d. while from a recent cable from Australia it appears that the minimum figure for income tax there has been further lowered. In Canada, too, in the United Kingdom, and m the United States, income tax is payable from a much lower curve than in South Africa.

We are not very anxious to follow the examples of those countries which I have mentioned. Apart from other considerations we take into account the fact that the collection of income tax from people with small incomes will relatively speaking mean a lot of trouble to the State, and also a lot of expense.

The additional staff for such work would not be easily obtainable. For that reason we introduced last year as an alternative the one portion of the personal and savings fund tax. Single persons, therefore earning £250 or more have to pay a globular amount of £5, while married men in receipt of incomes between £250 and £300 pay £3, and those earning £300 and over pay £5, with a rebate, however, of £1 for each child. The yield from these imposts is divided between our Revenue Account and the savings fund. Even under present conditions we do not want to lower the lowest notch of either this tax or the Income Tax. The person in receipt of an income of £250 will therefore still not have to pay any direct taxation to the Union Exchequer, but we have to increase the round sums of the Personal and Savings’ Fund Taxes, namely, from £3 to £5, in the case of married men with an income of between £250 and £300, and from £5 to £7 10s. in other cases. The yield from these additional taxes will be equally divided between revenue account and savings’ fund. We hope to obtain £350,000 for the Revenue Account.

As I have said, we proposed to increase the Super Tax. Two years ago I referred to the position of the shareholder in a South African company who was not domiciled in South Africa. I mentioned the fact that while the shareholder domiciled in South Africa had to pay Super Tax on his dividends, this did not apply to the shareholder living abroad. Because of that we have put a special tax of 1s. in the pound on the dividends payable to shareholders living abroad. In view of the increased burdens which will have to be borne by persons domiciled in South Africa we consider it reasonable to increase this scale by 6d. in the pound, that is to say to increase it to 1s. 6d. We expect, as a result, to collect an additional £480,000.

I now come to the one new tax which we are proposing. As hon. members know, the Railway Administration is struggling with the problem of reducing the number of travellers over the Railways. All their efforts in that direction, however, have so far had the very opposite effect. The number of travellers is still increasing. It must therefore be a matter of sound principle, as far as taxation is concerned, to levy a tax on railway passengers at this juncture. I naturally would not be so bold as to take upon myself to tax the Railway Administration as such—it is the railway passenger who will bear the tax and the Administration will be good enough to collect the tax for us. Nor would I in normal times propose a tax of this kind. In ordinary circumstances we naturally want to encourage traffic and we do not want to discourage it. These, however, are not normal times, and the imposition of this tax, which as a matter of fact has already been introduced in other countries, is therefore fully justified. The tax will be in the form of a surcharge of 15% on 1st and 2nd class (not 3rd class) railway tickets. Naturally we do not want to tax the people who are forced every day to travel by railway to and from their work. Season tickets, therefore, will be exempted, as also tickets costing less than 10s. There will also be exemptions in respect of certain types of tickets which are issued at concession rates. We expect this tax, which will not come into effect before the 15th April, to yield £500,000.

SUMMING UP OF POSITION, 1943—’44.

I shall now proceed to sum up the estimated effects of our taxation proposals.

As I have already indicated, we expect to get £3,480,000 from Customs and Excise Duties, and £685,000 from the Post Office. Under the heading of Inland Revenue our proposals are as follows:

Companies

£1,030,000

Excess Profits Tax

825,000

Gold Mines

910,000

Diamond Mining Companies

135,000

Normal and Super Tax (net)

800,000

Personal and Savings’ Fund Tax

350,000

Foreign Shareholders

480,000

Tax on Railway Passengers

500,000

£5,030,000

The whole amount therefore is £9,195,000. Our task was to find £9,744,500. We have practically succeeded in doing so. The deficit of £549,500 left is in relation to the proposed expenditure of £100,000,000 and is not such that any further steps are required.

There is only just one other point which I wish to mention. Our total expenditure next year on Revenue and Loan Account will amount to a sum of close on £164,000,000. Of that we expect to find about £108,500,000 from current Revenue. The amount which we shall have to borrow is therefore one-third of the total. I feel that this amount can be looked upon as very satisfactory.

GENERAL REMARKS.

Mr. Speaker, I have now completed my task. You will permit me to describe it as a difficult one. How I have acquitted myself of it I leave to the House and the public to judge. This will undoubtedly be described as a drastic Budget. That would not be an incorrect description. I am not, however, going to apologise for it. Time and again, in the one belligerent country after the other, it has been proved that in a time like the present a nation does not expect to be let down lightly and to be led through green pastures—it prefers to be led through dangers and privations and over rough courses until its aim is achieved. It prefers to be challenged to show even greater courage and sacrifices. The people of South Africa in this respect do not differ from other nations in the world. This Budget constitutes such a challenge, and I know it will be taken up as such, and I have no hesitation, or doubt, of the response.

Mr. FRIEND:

I second the motion.

The MINISTER OF FINANCE:

I lay upon the Table:

  1. (1) Estimates of the Revenue to be received during the year ending 31st March, 1944, excluding revenue of the Provincial and Railways and Harbours Administrations.
  2. (2) Summary of facts and figures in connection with the Budget Statement for inclusion in Hansard, as follows—

REVENUE 1942—’43.

Head of Revenue.

Revised Estimate.

Original Estimate.

Increase.

Decrease.

£

£

£

£

Customs:—

Customs Duties

8,300,000

10,800,000

2,500,000

General

50,000

20,000

30,000

8,350,000

10,820,000

30,000

2,500,000

Excise:

Spirits

2,000,000

1,600,000

400,000

Beer

1,036,000

950,000

86,000

Sugar

360,000

300,000

60,000

Tobacco and Cigarettes

4,500,000

3,850,000

650,000

Matches

100,000

125,000

25,000

Motor Fuel

245,000

205,000

40,000

Tyres and Tubes

190,000

225,000

35,000

Yeast

95,000

100,000

5,000

Miscellaneous

4,000

3,000

1,000

8,530,000

7,358,000

1,237,000

65,000

Total for Customs and Excise

16,880,000

18,178,000

1,267,000

2,565,000

Posts, Telegraphs and Telephones:—

Posts: Postage

2,914,000

2,800,000

114,000

Commission

109,000

105,000

4,000

Box and Bag Rents

52,000

51,000

1,000

Ocean Mail Service

115,000

90,000

25,000

Miscellaneous

155,000

154,000

1,000

3,345,000

3,200,000

145,000

Telegraphs

725,000

725,000

Telephones

3,270,000

3,200,000

70,000

Official Telegraphs and Telephones

460,000

360,000

100,000

Total for Posts, Telegraphs and Telephones

7,800,000

7,485,000

315,000

Mining:—

Government Ownership Revenue: Licences and Mynpacht Dues

357,000

355,000

2,000

State Diamond Diggings

273,000

210,000

63,000

Income Tax:—

Normal Tax:

Gold Mines

13,962,000

13,430,000

532,000

Diamond Mines

184,000

228,000

44,000

Other Mines

370,000

350,000

20,000

Individuals

6,200,000

5,200,000

1,000,000

Companies (other than mining)

5,133,000

4,650,000

483,000

Super Tax: Individuals

5,328,000

4,220,000

1,108,000

Companies

52,000

16,000

36,000

Interest on Overdue Tax

25,000

25,000

31,254,000

28,119,000

3,179,000

44,000

REVENUE 1942—’43.

Head of Revenue.

Revised Estimate.

Original Estimate.

Increase.

Decrease.

£

£

£

£

Excess Profits Duty

10,700,000

7,500,000

3,200,000

Trade Profits Special Levy

4,135,000

4,000,000

135,000

Gold Mines—Special Contribution …

8,197,000

8,173,000

24,000

Diamond Mines—Special Contribution

91,000

104,000

13,000

Undistributed Profits Tax

38,000

63,000

25,000

Non-resident Shareholders’ Tax

1,050,000

900,000

150,000

Personal and Savings Fund Levy

1,550,000

1,550,000

Fixed Property Profits Tax

160,000

450,000

290,000

New Motor Car Sales Tax

50,000

50,000

Licences

300,000

290,000

10,000

Stamp Duties and Fees

1,325,000

1,200,000

125,000

Death Duties

1,375,000

1,375,000

Native Taxes

230,000

230,000

Native Pass and Compound Fees

90,000

90,000

Fines and Forfeitures

450,000

400,000

50,000

Quitrents and Farm Taxes

5,000

5,000

Rents of Government Property

270,000

225,000

45,000

Forest Revenue

850,000

650,000

200,000

Recoveries of Advances

120,000

57,000

63,000

Departmental Receipts:—

Contribution from South West Africa in terms of Police (S.W. Africa) Act, 1939

114,000

114,000

Government Garage Receipts

188,000

172,000

16,000

Mint Receipts

630,000

143,000

487,000

General

1,268,000

1,157,000

111,000

2,200,000

1,586,000

614,000

Miscellaneous Receipts:—

S.A. Reserve Bank

512,000

600,000

88,000

Internment Camps Expenses recovered from other Governments

224,000

247,000

23,000

General

464,000

426,000

38,000

1,200,000

1,273,000

38,000

111,000

Interest:—

On Government Loans and Investment of cash balances …

3,178,000

3,058,000

120,000

Dividends

352,000

352,000

3,530,000

3,410,000

120,000

Total for Inland Revenue

69,800,000

62,265,000

8,018,000

483,000

Total Revenue to be received

£94,480,000

87,928,000

9,600,000

3,048,000

Net Increase: £6,552,000.

REVENUE 1943—’44.

Head of Revenue.

Estimate 1943—’44.

Revised Estimate 1942—’43.

Increase.

Decrease.

£

£

£

£

Customs:—

Customs Duties

7,000,000

8,300,000

1,300,000

General

25,000

50,000

25,000

7,025,000

8,350,000

1,325,000

Excise:—

Spirits

2,400,000

2,000,000

400,000

Beer

1,050,000

1,036,000

14,000

Sugar

375,000

360,000

15,000

Tobacco and Cigarettes

4,800,000

4,500,000

300,000

Matches

102,000

100,000

2,000

Motor Fuel

240,000

245,000

5,000

Tyres and Tubes

180,000

190,000

10,000

Yeast

100,000

95,000

5,000

Miscellaneous

3,000

4,000

1,000

9,250,000

8,530,000

736,000

16,000

Total for Customs and Excise

16,275,000

16,880,000

736,000

1,341,000

Posts, Telegraphs and Telephones:—

Posts: Postage

2,960,000

2,914,000

46,000

Commission

110,000

109,000

1,000

Box and Bag Rents

51,000

52,000

1,000

Ocean Mail Service

130,000

115,000

15,000

Miscellaneous

154,000

155,000

1,000

3,405,000

3,345,000

62,000

2,000

Telegraphs

740,000

725,000

15,000

Telephones

3,340,000

3,270,000

70,000

Official Telegraphs and Telephones

515,000

460,000

55,000

Total for Posts, Telegraphs and Telephones

8,000,000

7,800,000

202,000

2,000

Mining:—

Government Ownership Revenue: Licences and Mynpacht Dues

360,000

357,000

3,000

State Diamond Diggings

250,000

273,000

23,000

Income Tax:—

Normal Tax:

Gold Mines

12,000,000

13,962,000

1,962,000

Diamond Mines

370,000

184,000

186,000

Other Mines

325,000

370,000

45,000

Individuals

5,750,000

6,200,000

450,000

Companies (other than Mining)

4,600,000

5,133,000

533,000

Super Tax: Individuals

5,100,000

5,328,000

228,000

Companies

31,000

52,000

21,000

Interest on Overdue Tax

25,000

25,000

28,201,000

31,254,000

186,000

3,239,000

REVENUE 1943—’44.

Head of Revenue.

Estimate 1943—’44.

Revised Estimate 1942—’43.

Increase.

Decrease.

£

£

£

£

Excess Profits Duty

10,250,000

10,700,000

450,000

Trade Profits Special Levy

5,300,000

4,135,000

1,165,000

Gold Mines—Special Contribution

7,400,000

8,197,000

797,000

Diamond Mines—Special Contribution

184,000

91,000

93,000

Undistributed Profits Tax

35,000

38,000

3,000

Non-resident Shareholders’ Tax

955,000

1,050,000

95,000

Personal and Savings Fund Levy

1,580,000

1,550,000

30,000

Fixed Property Profits Tax

200,000

160,000

40,000

New Motor Car Sales Tax

25,000

50,000

25,000

Licences

300,000

300,000

Stamp Duties and Fees

1,300,000

1,325,000

25,000

Death Duties

1,600,000

1,375,000

225,000

Native Taxes

230,000

230,000

Native Pass and Compound Fees

90,000

90,000

Fines and Forfeitures

450,000

450,000

Quitrents and Farm Taxes

5,000

5,000

Rents of Government Property

270,000

270,000

Forest Revenue

900,000

850,000

50,000

Recoveries of Advances

80,000

120,000

40,000

Departmental Receipts:—

Contribution from South-West Africa in terms of Police (S.W. Africa) Act, 1939

114,000

114,000

Government Garage Receipts

190,000

188,000

2,000

Mint Receipts

165,000

630,000

465,000

General

1,550,000

1,268,000

282,000

2,019,000

2,200,000

284,000

465,000

Miscellaneous Receipts:—

South African Reserve Bank

500,000

512,000

12,000

Internment Camps Expenses, recovered from other Governments

200,000

224,000

24,000

General

450,000

464,000

14,000

1,150,000

1,200,000

50,000

Interest:—

On Government Loans and Investment of cash balances

3,265,000

3,178,000

87,000

Dividends

352,000

352,000

3,617,000

3,530,000

87,000

Total for Inland Revenue

66,751,000

69,800,000

2,163,000

5,212,000

Total for Revenue to be received

£91,026,000

94,480,000

3,101,000

6,555,000

Net Decrease: £3,454,000.

BUSINESS OF THE HOUSE.

Precedence of Government Business on Fridays.

*The PRIME MINISTER:

I move—

That on and after Friday, 12th March, Government business have precedence on Fridays after Notices of Questions have been disposed of.

This motion signifies a little acceleration of the normal time-table of the House. We appropriate two Fridays before the time fixed according to the standing rules and orders. But I think it is reasonable to take it at this stage. In the first place there is one Friday now open. No private work has been set down for it. It is therefore open and can be appropriated by the Government. In the second place it is the intention of the Government, and I think also of the House, not to stretch the Session unnecessarily, and to terminate our activities as speedily as possible. In all these circumstances I think it will meet with the approval of the House that we should now appropriate two Fridays for Government work earlier than usual.

Mr. FRIEND:

I second.

*Dr. MALAN:

The Prime Minister has said at the introduction of this motion that he is appropriating Fridays earlier than has been the case during other Sessions. I can only reply that his argument has surprised me in view of the fact that in the Session so far, with the alteration of the time of the sittings of the House, a portion of private members’ days is given to the Government which the Government would not otherwise have had. On every private members’ day, every Tuesday and Friday, the Government gets the rest of the day after a quarter past four, and a considerable part of the Government’s work is being done this Session on private members’ day, something that has not happened at other Sessions. To come to ask further concessions from private members by the acceleration of the time by two Fridays in these circumstances is, I think, a surprise to us, and it is unfair. In making a request of this kind, that Fridays be taken up by the Government at an earlier date, it is customary for the Prime Minister to inform the House about further business. About this we got absolutely nothing from the Prime Minister. He tells us nothing about the further course of the Session. What we usually want to know on an occasion such as this is how long he thinks the Session is going to last, and what in his opinion the arrangement of the work is going to be. We got nothing about that. He does not tell us what further legislation he intends to submit to the House. There is not much on the Order Paper, but we do not know what will still come. I think considerable work for Fridays will still appear from private members. There is a whole bunch of motions on the agenda that are of great interest and that will still be discussed on Tuesdays. If these motions do not come to a division, if the House does not decide on them, then the only chance is to adjourn the discussion to the Friday. There is no other chance to bring those motions under discussion again except on Fridays. But now members are being deprived of Fridays. No, I do not think the House should adopt this motion, so that private members shall have at least another two Fridays.

*Mr. SAUER:

The Prime Minister comes with this motion earlier than we usually get it. Fridays are taken away from us where according to the rules of the House these have always been allotted to private members. The Fridays to which private members are entitled, are laid down by the rules of the House, and this was not done on a loose footing, but because there was a definite need that Fridays should be given to private members, and that need is that members who want to bring serious and urgent matters under discussion have no other means at their disposal other than to come to the House with their motions on private member’s day. If it is now the position that there are no important questions brought under discussion by private members then we can understand that the Prime Minister will be quite justified to propose this motion. But notwithstanding the fact that a large number of private members’ motions have been withdrawn during the last few days, because those members thought that they would not get a chance on private members’ days, and thus wanted the opportunity to discuss those matters in connection with the Budget, there are still motions of the greatest importance of which notice has been given on the Agenda. Just look at the notices of motion on the Agenda, and then one finds such an important motion for instance as that of the hon. member for Griqualand (Mr. Gilson). His motion is a very important one, a motion in which members on all sides of the House have participated, a motion that requires much more time than is available for it. When the time expired on Tuesday various members were still rising. I can quite understand that the Government, and particularly the Minister of Agriculture, is desirous that more time should be given to this motion. They do not want to give more time to it. There is a smouldering rebellion in the Government’s own party about agricultural matters, and if this question is discussed further in connection with this motion it will no longer be a secret rebellion but a public rebellion. Must we now assume that this is an attempt to throw up a smoke-screen behind which the Minister of Agriculture—I see the Minister of Lands looking at me, and I shall include him also—can retire? But I do not want to go into the merits of that extremely important question further.

Business suspended at 12.45 p.m. and resumed at 2.20 p.m.

Afternoon Sitting.

*Mr. SAUER:

When business was suspended, I was busy pointing out the important motions that have come from private members and that will apparently not be brought under consideration if this motion of the hon. Prime Minister is adopted. I pointed to the important motion in connection with agriculture that was only partly dealt with. If I say that it was only partly dealt with then I think that I almost exaggerate the matter. Then I want to point out that there are various other motions. Here we have about 10 on the Order Paper. Another very important motion is that standing in the name of the hon. member for Swellendam (Mr. S. E. Warren) which deals with the question of great importance to the liquor trade and to the wine industry, and that is the question of the so-called “tied house”. It is a matter of extremely great importance, and it becomes of greater importance particularly in view of the motion that came today from the hon. Minister of Finance to impose still further taxation on the liquor trade, and this is a great handicap to the natural development of the liquor trade on the right lines, and it is desirable that this matter shall be thoroughly discussed in the House. It has been touched upon from time to time in the past, but there has never been a proper discussion and the request has never been made that the necessary measures be taken to see in how far this handicaps the wine farmer and the wine trade in their activities. It is a matter of the utmost importance that can apparently not now be dealt with during this Session. I might mention just one matter on which hon. members on this side of the House feel very strongly, and that is the motion of the hon. member for Winburg (Mr. C. R. Swart)—

That the Government be requested to consider the advisability of immediately instituting an intensive inquiry into all the circumstances in connection with the detention without trial, and the methods of questioning and treatment, of persons who have been arrested under the emergency regulations or other war measures …

We know that serious allegations are being made in connection with the treatment of those people. I do not want to go into the matter now, but there is definitely a prima facie case for the institution of a serious investigation. It is quite impossible for us to deal with that matter in the ordinary budget, because it is a matter that must be thoroughly thrashed out between hon. members and the Minister responsible for it. There is another motion regarding the question of the internment of Union citizens. While the matter has been dealt with in the past, it is nevertheless a matter that affects the rights of freedom of movement of so many citizens in this country that it can be generally said that it is in the interests of the country and of our political moral conceptions in this country that that matter shall be thoroughly discussed. Nobody will deny that the question of Communism is a very threatening danger, not only in this country, but in the whole world. A very important debate has commenced on this, and that debate is far from concluded. There are many members who have not had a chance of airing their views. That is also something that can now apparently not be taken into consideration. I have mentioned only a few of the things, but I think I can mention a lot of very serious matters to which this House and the country are giving attention. I feel that if our time is curtailed many of these extremely important questions will not get the necessary publicity and that the necessary attempts will not be made in this House to rectify those things which we view as wrong. For these reasons I feel that it is impossible for me to support this motion.

*Mr. C. R. SWART:

In connection with this matter and the ultimate adjournment of this House, I want to bring this point to the attention to the hon. the Prime Minister, and also to the attention of the hon. Minister of Finance, who usually has the arrangement of affairs in this House under his control. That is, namely, that we have to do with the position every year that certain Budget votes of Ministers come right at the end, during the last two or three days when members are generally tired and when everything is hurried; and I want to ask if the Government would not be willing to arrange matters so that sufficient opportunity shall be given to complete the estimates before we get to the last few days of the Session.

*The MINISTER OF FINANCE:

We shall discuss it with your Whip. Of course we have to think of the Senate.

*The PRIME MINISTER:

The hon. Leader of the Opposition has put certain questions to me. In the first place, he asked what the intention of the Government is regarding the length of the Session, and I may say to that that we are aiming at Easter, that is, about 23rd April, as the time at which we can terminate our deliberations.

*Mr. C. R. SWART:

Before the Easter holidays?

*The PRIME MINISTER:

Yes. But if we must do that, then we shall have to arrange our business fairly well, and we trust that hon. members on the other side will also do their best to help us to arrange matters so that business may be completed before the Easter holidays.

*Mr. ERASMUS:

If we know that there will be an election, yes.

*The PRIME MINISTER:

The hon. member is under a misapprehension when he thinks that we are acting in conflict with the usual practice. I have said that according to the standing rules we now appropriate a few Fridays for a time that is stipulated in the standing orders, but we are not acting in conflict with the ordinary custom. It is the ordinary custom of this House to anticipate the date of the Order and to appropriate time beforehand. It is the ordinary custom that is now being followed. The hon. member for Humansdorp (Mr. Sauer) referred to certain important motions that still have to be dealt with wholly or partly. Some of them can easily be dealt with on the Budget, as, for instance, the motion of the hon. member for Griqualand (Mr. Gilson). Tuesdays are still open for other motions, such as the motion relating to internments. We do not appropriate all the time. We allow a fair margin over for the discussion of such important things on Tuesdays. As regards the remarks of the hon. member for Winburg (Mr. C. R. Swart) regarding the arrangement of business under the Budget, we can go into that, and I hope a proper arrangement will be arrived at for a timely discussion of the various votes under the Budget before the end of the Session, with a view, of course, to the fact that these things still have to come before the Senate. I do not think that what I propose here is excessive or in conflict with our ordinary custom, and with a view to the urgency of expediting our business, I hope that hon. members will not oppose this motion. The hon. Leader of the Opposition has also asked what Bills we propose to proceed with. It is the list standing here on the Order Paper today. We intend to complete this, and then there is still a small number of Bills, mostly of a non-contentious nature, either administrative or consolidating laws.

*Mr. SAUER:

Is an amendment of the Act of Union still coming along?

*The PRIME MINISTER:

I am sorry, but on that I can give no information. It is considered necessary to make a few amendments, for example as regards railway control and customs control, then an amendment in connection with Estates Legislation, one in connection with building societies, and an amendment of the Pensions Act. These are minor Bills, or somewhat bigger measures that are not of a contentious nature.

*Mr. ERASMUS:

That in connection with the soldiers’ votes is surely contentious?

*The PRIME MINISTER:

It is contentious, but not of any great scope. It is a Bill within brief scope, that we can easily dispose of. Then there is a Bill in connection with the employment and training of soldiers. This is now being dealt with under the war measure, but a lot can be said for it that we should transcribe this war measure into a Bill, and this will still appear. Then we are still of intention to abolish the bi-ennial registration of voters this year. We have not a staff big enough to do the work, and we propose to suspend it for at least one year.

*Mr. C. R. SWART:

The supplementary registration?

The PRIME MINISTER:

That goes on. The three-monthly supplementary registration will continue, but the bi-ennial registration demands a big staff and we are told that it will be very difficult to complete it with the staff available. So far as we can see at the moment, these are all the Bills that will come forward, apart of course from the financial measures.

*Mr. S. E. WARREN:

The Magistrate’s Court Legislation?

*The PRIME MINISTER:

Yes, there is also a small amendment.

Motion put and the House divided:

Ayes—57:

Abbott, C. B. M.

Abrahamson, H.

Acutt, F. H.

Alexander, M.

Ballinger, V. M. L.

Bawden, W.

Bell, R. E.

Botha, H. N. W.

Christopher, R. M.

Clark, C. W.

Conradis, J. M.

Davis, A.

Deane, W. A.

De Wet, H. C.

Dollfey, G.

Du Toit, R. J.

Egeland, L.

Friedlander. A.

Goldberg, A.

Higgerty, J. W.

Hofmeyr, J. H.

Hooper, E. C.

Howarth, F. T.

Jackson, D.

Johnson, H. A.

Kentridge, M.

Lawrence, H. G.

Long, B. K.

Marwick, J. S.

Miles-Cadman, C. F.

Molteno, D. B.

Mushet, J. W.

Neate, C.

Payn, A. O. B.

Pocock, P. V.

Raubenheimer, L. J.

Reitz, L. A. B.

Robertson, R. B.

Shearer, V. L.

Smuts, J. C.

Solomon, B.

Solomon, V. G. F.

Sonnenberg, M.

Sturrock, F. C.

Sutter, G. J.

Tothill, H. A.

Trollip, A. E.

Van Coller, C. M.

Van den Berg, M. J.

Van der Byl, P. V. G.

Van der Merwe, H.

Wallach, I.

Wares, A. P. J.

Warren, C. M.

Waterson, S. F.

Tellers: G. A. Friend and W. B. Humphreys.

Noes—36:

Badenhorst, C. C. E.

Bekker, S.

Bezuidenhout, J. T.

Bosman, P. J.

Brits, G. P.

Conradie, J. H.

De Wet, J. C.

Dönges, T. E.

Du Plessis, P. J.

Erasmus, F. C.

Geldenhuys, C. H.

Haywood, J. J.

Hugo, P. J.

Le Roux, S. P.

Loubser, S. M.

Louw, E. H.

Malan, D. F.

Olivier, P. J.

Oost, H.

Schoeman, B. J.

Serfontein, J. J.

Steyn, G. P.

Swart, C. R.

Van den Berg, C. J.

Van der Merwe, R. A. T.

Van Nierop, P. J.

Van Zyl, J. J. M.

Venter, J. A. P.

Viljoen, J. H.

Vosloo, L. J.

Warren, S. E

Wentzel, J. J

Werth, A. J.

Wolfaard, G. v. Z.

Tellers: J. F. T. Naudé and P. O. Sauer

Motion accordingly agreed to.

FIRST REPORT OF SELECT COMMITTEE ON IRRIGATION MATTERS.

First Order read: House to go into Committee on First Report of Select Committee on Irrigation Matters.

House in Committee:

The CHAIRMAN read the report:

Your Committee, having considered the Report of the Irrigation Commission on the under-mentioned irrigation scheme, referred to it, begs to report as follows:

Bellair Irrigation Scheme, Brak River, Division of Ladismith, C.P.

In paragraph (c) of the Resolution in regard to the above irrigation scheme adopted by both Houses of Parliament in 1942, it was provided that “The 150 morgen of irrigable ground and 45 morgen non-irrigable land to be given by the Government in equal portions, free of cost, to the present owners of the farms Koegat, Muurvlakte, Hondewater, Brakfontein and Thyskraal.” Your Committee recommends that the following words be added at the end of the said provision: “and that the purchase price of the said land and such costs as may be involved in the office of the Registrar of Deeds for the transfer of this land into the names of the contemplated persons, shall be met out of moneys to be specially voted by Parliament.”

Harold Abrahamson, Chairman.

Recommendation put and agreed to.

House Resumed:

The CHAIRMAN reported the resolution of the Committee.

Report to be considered now.

Mr. ABRAHAMSON:

I move—

That the Report be adopted.

Mr. HIGGERTY seconded.

Agreed to.

PRESCRIPTION BILL.

Second Order read: Second reading, Prescription Bill.

†The MINISTER OF JUSTICE:

I move—

That the Bill be now read a second time.

In proposing the second reading of this Bill I intend just giving a very brief survey. This is a Bill to amend and consolidate the laws in the various provinces relating to prescription. Its primary object is to secure uniformity throughout the Union. It will for the first time codify the whole of the law on the subject and make it available in both official languages, and will serve to remove certain anomalies dealt with more particularly hereinafter. Without going into too much detail, it is sufficient to point out that at the present moment the hypothecary action is prescribed in thirty years in the Transvaal, but in forty years in the rest of the Union. Fees for professional services are prescribed in two years in Natal, three years in the Cape Province and Transvaal, and four years in the O.F.S. A claim for damages arising out of a motor accident would be prescribed in the Transvaal in three years, in four years in the Orange Free State, but only after thirty years in the Cape Province and Natal. An action to recover money by a condictio indebiti is prescribed in the Transvaal, O.F.S., Natal and the Cape Province in three, four, six and eight years respectively. The most recent of the existing Acts, viz.: the Transvaal Act No. 26 of 1908, has been taken as a basis but has not been slavishly followed. Omissions have been supplied and the scope extended. I should like to point out, too, that the use of certain technical expressions in Latin have been retained as they have been so fully discussed in the authorities and in the courts and are so commonly used that it would be unwise to attempt to substitute translations. Now, if I may be allowed to refer to certain sections of the Bill, I shall proceed to do so. First of all, these is Section 1 dealing with “definition.” The definition of “person under disability” settles the controversy about prescription as between spouses and brings our law into line with French, German, and it is submitted Roman Dutch Law, as well as with the general policy of our law in respect of husband and wife. Section 2 deals with the position with regard to acquisitive prescription, which is now completely codified, and the controversy about the period settled. Section 3, the barring of a claim based on the prohibition against large donations, has been inserted at the suggestion of one of our judges, and removes an admitted weakness in our law as interpreted by the Appellate Division in recent decisions. Sections 4 and 5 speak for themselves. Section 6 contains a new provision dealing with the situation created by the Farmers’ Assistance Act and omits reference to the Common Law, as the whole position is covered by the provisions of the section. Sections 8, 9 and 10 call for no comment. Section 11 provides for the change-over from the old laws and guards against any injustices to either debtors or creditors. The new procedure will at once apply, but old periods will continue in respect of existing claims, except that none will be longer than thirty years. Sections 12 and 13 are self-explanatory. Section 14 settles another controversial point of procedure. Provision is made that a defendant must give proper notice of his intention to rely on prescription by raising the matter specifically in his pleadings, but the court has a discretion to permit the defence to be raised at any stage. Section 15—it is not considered advisable to deprive the Crown and Public Bodies of the protection afforded them by the various short periods of limitation of actions fixed by particular laws. I think that the list of these laws is too long to be given in full but I should be quite prepared to give them to hon. members. The periods have apparently been fixed quite arbitrarily, and it is unfortunate that uniformity cannot be introduced but that would be a task of too great magnitude to attempt in the present Bill. It would complicate matters very much. I hope that at some future date we may be able to get uniformity. I think that this is a very necessary Bill and I hope the House will have no objection to passing its second reading.

†*Mr. C. R. SWART:

I think it would have been more interesting if the hon. Minister had delivered a speech instead of reading a prepared memorandum. In any case I do not think we can do other than to welcome this attempt at obtaining uniformity. Uniformity in our laws in connection with prescription is very desirable. I want to say at the start that I am glad to see that in this Bill an attempt, and a successful attempt, is made to draft an orderly Bill, in this sense that one can understand it and see what it contains. Most Bills of late have long sentences of 20 and 30 lines to reflect one conception, altogether unintelligible. This Bill has been clearly drafted. I mention this because during this Session we have Bills before the House that even lawyers find difficult to understand. When one is busy reading it, and one comes to the verb at last, one has forgotten the subject. I would recommend that we should get more Bills in such a form that we can see what it means at a glance. After this word of appreciation to the legal draughtsman, I want to welcome this codification, for that is what it boils down to, of legislation. It is desirable that the various laws and proclamations in connection with prescription be consolidated and that uniformity be created for all the provinces. The matter has created considerable confusion in the various provinces. In one province the period of prescription in the case of ordinary debts, was three years, in another four years. There were different provisions everywhere. Now I want to ask the Minister, however, if it is not possible to refer the Bill to a Select Committee after the second reading. I understand that a number of amendments will be proposed at the committee stage, and secondly there are quite a few matters that members would like to thrash out thoroughly. It is a Bill of a highly technical nature, that cannot be analysed across the floor of the House. When an amendment comes it takes a considerable time before one can see the practical implications.

*The MINISTER OF JUSTICE:

I shall agree.

†*Mr. C. R. SWART:

I am very glad, for this will help a lot. We have had proof in the past that a Bill of this nature can be analysed in two or three days in a Select Committee, and then a good Bill appears before the House, whereas if it must be dealt with here then it will take hours and hours of discussion.

*Mr. BLACKWELL:

Has the Bill been sent to the Law Societies and the lawyers?

†*Mr. C. R. SWART:

I must say, so far as I am concerned, that the Minister sent me the Bill a considerable time ago to go through. I am thankful for it. I cannot reply to the question of the hon. member. I do not want to take up the time of the House longer in view of the fact that the measure will be dealt with by a Select Committee.

†Mr. TROLLIP:

The public generally will welcome this Bill, and the legal profession in particular welcomes it. We have found in the past that with the different laws in the four Provinces it has been very difficult for any person to find out what the position is under the different prescription laws. I say, therefore, that the legal profession particularly will welcome this Bill. I might say that the Bill has been sent to the Law Societies of the Union, it has been considered by the Association of Law Societies, and it has also been sent to the Bar Council in Johannesburg who have had an opportunity of examining it. Apparently they are quite satisfied with the Bill as it stands. There are one or two points, however, to which I should like to draw the Minister’s attention in connection with the details of the Bill. In regard to Section 2 (ii) there is the provision which reads as follows—

As soon as the period of thirty years has elapsed such possessor or user shall ipso jure become the owner of the property or the servitude as the case may be and shall thereafter, in the case of immovables, be entitled to registration in his name.

Now, we would like to know from the Minister, in his reply, how the person who is entitled to this property by acquisitive prescription is to set about getting registration in his name? I think some provision-should be made in the Bill. The point is whether the application to the Registrar of Deeds should be by affidavit, or whether the person who claims the title, should have to make application to court. I think the Bill should specify how that is to be done. Then, with regard to the period of three years, in respect of the price of movables sold, and delivered, there seems to be some doubt whether shares are movables, and I think the Minister should specify particularly whether shares are to be included in this period of three years. I refer to a decision of the Appellate Court of 1928, in the case of Union Share Agency vs. Spain, where it was decided that shares were not movables in the meaning of the existing Act. I think we should specify in this section that the price of shares is included in the term “movables” sold and delivered. Then I want to refer to Section 13. Section 13 reads as follows—

This Act binds the Crown in respect of rights arising from delict or contract but in no other respect.

I should like to ask the Minister why the Crown should not be bound in all respects, the same as any other person. It seems to me that it is fair and reasonable to suggest that the Crown should be bound in all respects in this Prescription Bill. For instance, there is this provision in the Bill which deals with the acquisitive prescription of land. Why should the Crown be exempted from that provision? Why should not a person who holds Government land be entitled to acquire that land in the same way as if he held it from any private individual? There is no reason why the Crown with all its servants and departments at its disposal should not be able to guard its own interests—that is, to guard against the acquisition by any person of any Crown land. Then I want to raise more specifically this question of Crown liability. We know that certain Government Departments are protected in regard to actions taken against those Departments, They are protected by certain prescriptive periods.

Mr. S. E. WARREN:

Public bodies too.

†Mr. TROLLIP:

Yes, and municipalities. For instance you cannot bring an action against a municipality after a lapse of six months. You cannot bring an action against the Minister of Justice under the Police Act of 1920 unless you have given thirty days notice. Now I suggest for the consideration of the Minister, that all these prescriptive periods which we find scattered throughout all the statutes and ordinances of the Union, should be brought into this Bill. This presents a good opportunity of doing so. These periods should all be collected and be brought within the ambit of this Bill, so that any person who is concerned with prescription, who has an action perhaps against the Government, will simply refer to this Prescription Act which we are now passing and there he will see within what time he should bring his action against the Government. I think the Minister should consider this, because it would certainly tend to assist litigants and persons who have claims against the Crown. I should like the Minister to give us an opportunity of considering amendments before the Committee stage is taken, but if the Minister has agreed to refer the Bill to Select Committee, I will leave it at that.

*Mr. S. E. WARREN:

I would also like to congratulate the Minister of Justice on this attempt to tackle a matter that has taken us 30 years to tackle. The only objection I feel is that I have always looked upon prescription as something immoral. A man becomes the owner of another man’s property because he has used it for 30 years. If I owe money, and I wait long enough without paying, then it is not necessary for me to pay the debt. It seems to me that we are making it easier in this Bill to evade debt. If something is going to be done to destroy the credit system in our country, then that will be a good thing, but the way in which to do that is not the way indicated in legislation of this nature. Where prescription took eight years in certain parts of the country, I see no reason why it should be made six years. On the other hand, we realise that in a case of libel a case cannot be instituted after a year. In this respect the period might have been even shorter. But where an attempt is made to give people a right to other people’s possessions in a shorter period, there I feel that we are going in the wrong direction. Then I would like the Minister in his reply to explain one thing to me. In Clause 3 (b) provision is made for a period of three years in which a man must pay his debts. Why does the Minister include in that clause debt for hire moneys on a written contract? If I lend a man money against a receipt, then it takes six years for that debt to be prescribed. What difference does it make whether I lend a man money on the receipt or whether he owes me money for hire on a written contract? I cannot understand this provision, and I would like the Minister to explain to me why in the case of hire moneys on the written contract the debt is prescribed within three years, and in the case of money lent on a receipt the debt is prescdibed only after six years. Then it appears to me that any debt based on a written agreement takes at least eight years for prescription. It will now be said that the creditor can cover himself by summonsing, and then he gets 30 years. But this is going to cause additional costs that will have to be paid by the debtors. In the Transvaal the period was six years. Here with us it was eight years, and I cannot see why the period should be so short. Then there is another matter to which the Minister must also reply. I cannot understand why interest on a bond becomes prescribed after three years, and the bond itself after 30 years. Where they fix six years for written contracts, and three years for hire contracts, I cannot see why the difference is made. Then I also want to say that I am glad that the Minister has agreed to refer this Bill to a Select Committee. We are grateful that the Bill has been introduced, because it will consolidate the legislation and bring about uniformity in the question of periods for all Provinces. It will be easier to lock up the things; but I feel that the various provisions in connection with prescription as it applies to the Government and public bodies should also be incorporated in the Bill. It seems to me that the Minister has realised the seriousness of the matter, but he did not have enough time to consolidate all the laws in connection with this. Possibly it was too much work for him to incorporate everything, but I do feel that if everything is consolidated it will be easier for the lawyers as well as for laymen to find out within what period certain rights are prescribed. I cannot understand the objection of the last speaker in regard to servitudes. I think the clause is, clear enough—

As soon as the period of 30 years has elapsed such possessor or user shall, ipso jure, become the owner of the property or the servitude as the case may be, and shall thereafter, in the case of immovables, be entitled to registration in his name.

It is quite clear that if a man wants to avail himself of prescription and the other party refuses to agree with the registration, then he must go to Court, and the Court shall decide. We cannot place it in the hands of the Registrar of Deeds. Differences may arise in connection with prescription. It is possible that the owner of the ground may say that there was interruption, and that the period be calculated from after the interruption. Other things will come, such as, for instance, guardianship, and we cannot place such things in the hands of the Registrar of Deeds. It must be left to the Court. That is all I want to say on this. I am grateful that the Bill has been introduced, and I want the Minister of Justice to give us the opportunity of submitting matters. The Select Committee can discuss the matter, otherwise we shall sit here for days and take up the time of the House to thrash out these matters. There are also other things that must be taken up, in connection with which there have been Court decisions, and in connection with which legal principles have been laid down. There are different Court decisions in the different Provinces, and one would like to have uniformity by having those matters clearly set out in the law. It will perhaps take a little time in the Select Committee, but it will be worth the trouble to take up those matters in the Bill. We are thankful for the goodwill of the Minister of Justice in referring the Bill to the Select Committee.

†Mr. FRIEDLANDER:

Mr. Speaker, if the hon. Minister is going to refer this Bill to a Select Committee, there is little purpose in going into any of the details, certain of which have already been mentioned. I want to join with the hon. member for Brakpan (Mr. Trollip) in saying that anything in the nature of consolidation and bringing all these different provisions under one Act, will be welcomed by both branches of the legal profession. Of that there can be no doubt, and I think the Minister is to be congratulated on introducing this measure, which is going to be tremendously helpful to both branches of the legal profession. I also join with him in saying that I think this Act should embody everything under which any form of action would be prescribed. There are, for example, actions under the Railway Administration Acts where notice has to be given within a certain period prior to action. That, however, is a matter of detail, but the question I wish to draw attention to is contained in Section 2, paragraph 2, where I see an important principle involved. As I read this section—I am dealing only with immovable property—any person who claims the right of ownership on another person’s property, or even a qualified ownership in the form of a servitude, should be made to establish it either by consent of the owner concerned or by an order of the court. I do not think we should allow anything in the form of laxity in depriving a man of ownership of property, which ostensibly and prima facie is his, and before, therefore, we do deprive him of that right of ownership, or any qualified right over the land, he should be given notice, before the right or servitude should be registered in the Deeds Office. Or, there should be an order of court giving him the right which he claims. Under this section, as I read it, a person could come forward with an affidavit, or a series of affidavits, and go to the Registrar of Deeds, who would then be acting in a semi-judicial capacity, and get him to adjudicate upon those affidavits. Where a matter goes back over a very long period, in some cases it might be more than 30 years, you might very easily find that the original right had been given to someone who had no notice of this step. A man should only be deprived of ownership by his consent, or under an order of the court. There is quite an inexpensive method adopted under the Derelict Lands Act which might be adopted here. Under certain conditions one might apply in Chambers, setting out the circumstances, and the court would then give directions as to the person to be served with notice, or notice might be given in the public Press as a means of notifying the world that the application is being made for an order giving a right of ownership or a qualified right. That, I think, is a course which might very easily be adopted here, and it would prove an inexpensive way of getting the court to act. In that case the court would not be deprived of the right to adjudicate upon any question of ownership, and at the same time this method would remove the necessity of appointing the Registrar of Deeds a semijudicial officer.

Mr. S. E. WARREN:

He would not be a semi-judicial officer, but a judicial officer.

†Mr. FRIEDLANDER:

I hope that when the matter comes before the Select Committee the Minister will bear that in mind, and perhaps accept the suggestion I have put before him as a means which might be adopted, and in that way save expense as far as possible.

†Mr. DAVIS:

I hope that when this Bill finally emerges from the Select Committee, it will not create the same difficulties as the old Transvaal Act of 1908 created. When that Bill was first put on the Statute Book, it contained a number of very serious mistakes, and a great deal of harm was done before those mistakes were recitified. Now this Bill purports to follow the 1908 Act, but it creates what is new in South Africa in connection with prescription legislation, that is to say, it emphasises and defines the distinction between acquisitive and extinctive prescription. I agree with what the hon. member for Brakpan (Mr. Trollip) and the hon. member for Wynberg (Mr. Friedlander) have said as to the effect of Section 2 in dealing with acquisitive prescription, but I am not quite satisfied that the Bill follows out the effect of that distinction. For example, if you look at Section 9, there it is stated that when the creditor is a person under disability, “extinctive” prescription shall not begin to run until the date on which disability ceased. Why should there be emphasis on extinctive prescription, and why should acquisitive prescription run against a man who is under disability? The same criticism applies to Section 10 when the debtor is absent from the Union—extinctive prescription shall not begin to run until the date of his return. It seems to me that no distinction should be drawn in a case of that kind between extinctive and acquisitive prescription. Secondly, the old Transvaal Act provided for the manner in which prescription can be renounced. It was there expressly stated that when once prescription had taken place, it could only be renounced in writing. It seems to me that a provision of that nature might clarify the position, because otherwise verbal evidence might be given as to whether prescription had or had not been renounced and this might cause difficulty. It is not suggested in this Bill that prescription cannot be renounced. There was a provision in the Transvaal Act of 1908 which provided that prescription could not be excluded, or extended by the parties, and it seems to me that that would be a good provision in this Act. There was also a special provision in the 1908 Act which provided for the date from which prescription would run as against lawyers in respect of their fees, and I think that it would be a good thing if that provision were repeated in this Act. However, I am sure the Minister is anxious to introduce what will be a very good Act in so far as the Union is concerned, and I agree that the whole country will be pleased that this Bill, which is long overdue, has at last been introduced. It is to be hoped that when the Select Committee has finished its deliberations, a Bill will be produced which will be fair, which will be perfectly clear, and which will follow to logical conclusion the distinction between acquisitive and extinctive prescription.

†Mr. JACKSON:

Mr. Speaker, I would like to support what the hon. member for Wynberg (Mr. Friedlander) has said. There is just one difficulty that I see, and that is this, if this Bill is referred to a Select Committee after the principle has been adopted by the second reading, we do not want to be met by the answer that acquisitive prescription as laid down in Clause 2, has already been agreed to and accepted. We would like an assurance from the Minister that when the Bill appears before the Select Committee, it will still be open to amendment. The Bill has laid down that acquisitive prescriptive title can be obtained after 30 years, but I maintain that it should still be necessary to obtain the sanction of the court.

An HON. MEMBER:

That must follow.

†Mr. JACKSON:

Not necessarily, Mr. Speaker, if you read Clause 2, Sub-Section (2), which says—

As soon as the period of 30 years has elapsed such possessor or user shall ipso jure become the owner of the property or the servitude as the case may be, and shall thereafter in the case of immovables, be entitled to registration in his name.
Mr. S. E. WARREN:

He has still got to prove.

†Mr. JACKSON:

That may be so, but there may be no counter-allegations where there is no notice to the man who is the owner. Usually one has to depend upon people who are old and who have been in the neighbourhood for years. The affidavits may establish some right, but when one comes to examine them in detail, and when they are subjected to the scrutiny of cross-examination in open court, one may find flaws in them. I think that before this Bill goes to Select Committee, we would like to be assured by the Minister, that the functions of the court will not be swept away, and that something more than a simple affidavit, which is easy enough to make, should be required before a man is deprived of his right. That, to my mind, would be a very dangerous thing to allow.

†Mr. HEMMING:

Mr. Speaker, I want to draw the attention of the Minister to certain aspects of this Bill. Prior to Union Legislation of the Cape government was not effective in the Transkei unless it was specifically applied, since Union all Acts of Parliament not specifically excluded from the Transkei are in operation there. The effect therefore of this Bill will be that it will apply to certain actions brought under Native law unless they are specifically excluded from its operation. The definition of an “action” is wide enough to embrace all actions under Native law which are brought in the courts of Native Commissioners, and the clause dealing with extinctive prescriptions in its reference to particular causes of action, would undoubtedly embrace many actions brought under native custom. I am therefore suggesting that the Minister should investigate this aspect of the matter during the inquiry by the Select Committee so that precautions may if necessary be taken.

†*The MINISTER OF JUSTICE:

I just want to say this, generally speaking, in connection with what the hon. member for Swellendam (Mr. S. E. Warren) said, viz. that prescription is immoral. It may seem immoral to enable a man to get rid of his debt. But on the other hand we must give security to the person who has paid his debt and who, after a long time, may not be able to prove that he did so. We must prevent the individual who has paid his debt from being placed in a difficult position.

*Mr. S. E. WARREN:

Yes, but the other man can get something for nothing.

†*The MINISTER OF JUSTICE:

Yes, that is true, but the position will be even more difficult if we have not got this, from the point of view of the man who paid his debt. The other points which the hon. member raised can be dealt with by the Select Committee. I do not want to go into details in so far as those points are concerned, because I do not want to anticipate the deliberations of the Select Committee.

†There seems to be some misconception, this law does not alter the existing position on the matters raised by the hon. members for Brakpan (Mr. Trollip) and Ermelo (Mr. Jackson). Application has to be made to the courts in any case of dispute, the law is not altered at all, the law remains the same. I may also point out that by acquisitive prescription you get title without registration. That is the existing law. We are merely in this law consolidating the position. As regards those questions of shares and other points, that can be arranged in Select Committee. The difference between acquisitive and extinctive prescription is well recognised in our law, and Section 8 does not alter the existing position as it is. The point mentioned by the hon. member for Wynberg (Mr. Friedlander) about procedure under the Derelict Lands Act, is not affected, and the existing procedure will be followed. As regards the other point about prescription as far as the Crown is concerned, I am quite willing that we should go into that when the Select Committee meets, but that point is going to raise a considerable amount of difficulties. However, anything that I have got to say I will say there after having heard the views of those who come before the Committee. I do not want to anticipate our deliberations there, and I therefore ask that the second reading be taken now.

Motion put and agreed to.

Bill read a second time.

The MINISTER OF JUSTICE:

I move—

That the Bill be referred to a Select Committee for consideration and report.

Mr. TROLLIP seconded.

Agreed to.

NATIVE ADMINISTRATION (AMENDMENT) BILL.

Third Order read: Second reading, Native Administration (Amendment) Bill.

†The MINISTER OF NATIVE AFFAIRS:

I move—

That this Bill be now read a second time.

The Native Administration Act, passed in 1927, was one link in a chain of Native legislation passed by this House with the object of creating, as far as possible, a uniform system of Native administration and one Native policy for the four Provinces of the Union, to replace the divergent systems and policies of pre-Union days. For the purposes of the Native Administration Act a selection was made of the best provisions in operation in the different Provinces, and these were made of general application. The Act, therefore, deals with a number of subjects, and applies, among others, the Natal system of having a Supreme Chief, the Transvaal system of Native Commissioners, the Transkeian system of Native Appeal Courts and legislation by Proclamation. It provides also for the recognition or appointment of chiefs and headmen, for certain matters relating to tribal control and organisation, for the constitution of Courts of Native Commissioner and Native Appeal Courts, which have power to recognise and apply Native law, for the granting of jurisdiction of chiefs and headmen to try cases under Native law and custom, for the regulation of matters relating to marriage and succession, and for the framing of regulations on a number of subjects, including regulations for the control of Native villages and townships. The Bill now before the House is designed to remedy a number of difficulties which have occurred in the administration of this Act, and to remove certain hardships to the Natives flowing from inadequate provisions contained therein. It follows that the Bill, like the principal Act, should deal with a variety of aspects of Native administration. A draft of the Bill was submitted to the Natives’ Representative Council, which has agreed to the various provisions, with one exception, in regard to which I shall say more later on. The Council also asked that certain alterations and additions should be made, and these have all been incorporated in the draft now before the House. The Bill has also been considered by the Native Affairs Commission, who have recommended that it should be proceeded with. Clause 2 substitutes for the existing Section 2 of the principal Act a new section incorporating all previous amendments and making a number of improvements. The two main alterations are contained in sub-section (1), which now provides for the appointment of Assistant Chief Native Commissioners, and in sub-section (9), which has been amplified so as to provide protection for officials, chiefs and headmen from insults which they have at times to endure from agitators and other unruly elements. In addition to what the present sub-section contains, the new one makes it an offence for any person to disobey the lawful orders of any Chief Native Commissioner, Native Commissioner, chief or headman, to wilfully insult such official, chief or headman, to interrupt the proceedings at a meeting held by any of them, or to misbehave himself in a place where such meeting is held.

Mr. B. J. SCHOEMAN:

Who are these agitators?

†The MINISTER OF NATIVE AFFAIRS:

It might be hon. members opposite themselves. Perhaps it applies to them. Clause 3 contains a number of amendments of vital importance to the Native people in regard to the jurisdiction of Native Commissioners’ Courts. Firstly, matters affecting the validity or interpretation of wills will no longer be excluded from the jurisdiction of these courts and reserved for the Supreme Court, in which Natives can seldom sue owing to lack of means. As the result of the existing law, it is possible for an interested party to produce what purports to be a will and so to reap the benefit of an estate with little fear of being challenged, because an action in the Supreme Court is beyond the reach of other interested parties. Secondly, more specific provision is made in regard to the places of sitting of Native Commissioners’ Courts and, thirdly, there follows what is regarded as the most important provision in the whole Bill, namely the provision extending the jurisdiction of Native Commissioners’ Courts. To understand the importance of this amendment I must deal in some detail with the hardships which have resulted from the existing law, under which a Native Commissioner’s Court has jurisdiction over all causes and matters arising between Natives, but only if the defendant resides within the area of jurisdiction of the court in which the action is being brought. If a contract has been entered into or a tort committed within the area of a particular court, that court has no jurisdiction in the case unless, in addition, the defendant resides there. Now we all know that many thousands of Natives migrate annually to centres where they can find work, and equal numbers return to their homes. They enter into obligations at their homes and then move off to labour centres, or vice versa, and a plaintiff can only enforce his claim in such a case against an absent defendant if he,—with all his witnesses,—follows him to his new place of residence and sues him in that Court. The income of the average Native does not permit of this, and a defendant may thus evade his obligations for years. Adultery and seduction are frequent causes of action and it is a recognised thing for an adulterer or seducer to run away to the mines to escape paying damages to the injured party. Further, while jurisdiction is founded on residence, it is impossible to sue a defendant whose place of residence is unknown, as it cannot be determined which court has jurisdiction over him; and the method of service of process by edictal citation (i.e. published in Press, etc.), cannot be applied. This creates a particular hardship for women in Natal. In that Province a customary union can only be dissolved by the judgment of a Native Commissioner’s Court. A man may thus desert his wife for years, and if she can’t find out where he is resident, she simply cannot sue for the dissolution of the union. In terms of the new Sub-Section a Native Commissioner’s Court has jurisdiction not only when the defendant resides within its area but also if he carries on business or is employed or the cause of action arose within that area, or if the parties agree in writing to a court’s jurisdiction. In this respect Native Commissioners’ Courts will thus be placed on a similar footing to Magistrates’ Courts. The ne wsub-section (6) added to Section 10 by Sub-Clause (3) is necessary to provide for garnishee proceedings between Europeans and Natives, but arising from proceedings in Native Commissioners’ Courts, which do not have jurisdiction over Europeans. Clause 4 inserts a very necessary new section into the Act conferering on Native Commissioners and Native Commissioners’ Courts the same jurisdiction in respect of Natives as Magistrates and Magistrates’ Courts at present exercise under the “Deserted Wives and Children’s Protection Acts” in force in the four provinces. It also confers on women, who have entered into customary unions, the same rights under these Acts, as if they had been married. Clause 5. The new Sub-Section substituted for Sub-Section 2 of Section 11 provides that the Native law which is in operation at the place of residence of a defendant in a case is the Native law which should be applied in that case, if the Native Commissioner decides to apply Native law. If, however, two or more Native laws are in operation at that place as does happen at centres where many tribes live together, then the law of the defendant’s tribe must be applied. The new Sub-Section (3) of Section 11 has become necessary in view of certain decisions given by the Native Appeal Court (Transvaal and Natal) to the effect that the status of Natives must always be determined according to Native law, even when they may be suing under the common law. As Native women are perpetual minors under Native law, these decisions are creating much hardship, particularly for women of the educated class, as well as many others in towns, who desire to acquire property in their own names. An endeavour has been made to overcome these hardships without, at the same time, going too far and offending the uneducated Natives who are already complaining that they have no more control over their children and womenfolk. Clause 6 makes several improvements to Section 12 of the principal Act and Clause 7 will enable the Minister to have decisions of a Native Appeal Court reviewed by the Appellate Division, even when they do not conflict with previous decisions of that court. Honourable members will, of course, appreciate that as the decisions of a Native Appeal Court are binding on all Native Commissioner’s Courts in its area, one incorrect decision by it may give rise to a series of incorrect decisions by Native Commissioner’s Courts. Experience has shown that the present section under which a decision can only be brought before the Appellate Division for review when it conflicts with a previous decision in inadequate. The new section follows closely the provisions of Section 388 of the Criminal Procedure Evidence Act, 1917, and is, therefore, not entirely an innovation. Clause 8 remedies certain minor defects in the existing law. A chief on whom criminal jurisdiction is conferred will be allowed to exercise such jurisdiction over all Natives residing within his area, whether they be members of his tribe or not. This brings his jurisdiction in criminal cases into line with that in civil cases, and it strengthens the hands of chiefs against outsiders who enter a tribal area and then defy the chief. Clause 9, Section 30, has been found in practice to have certain limitations which detract greatly from its utility. The Committee appointed in 1938 by the honourable the Minister of Public Health to report on the Administration of Urbanised Areas not under Local Government Control (U.G. 8 of 1940) called attention to some of these defects and recommended that they should be remedied, while the Native Affairs Commission in its report on “Kaffir Beer” also suggested an improvement. The new section is more extended in its scope in that the Governor-General is now empowered to make regulations, not only in respect of townships and villages, but also in respect of rural settlements where congested conditions occur. He may also make regulations to prevent overcrowding in such townships or settlements and the rates which may be imposed are not longer limited to 1¼ per cent. of the value of the land. Lastly, regulations may be framed permitting the brewing, possession or consumption of kaffir beer in such townships, villages or settlements, notwithstanding any provision to the contrary in the Liquor Act, 1928. It will be observed that it is specifically stipulated in paragraph (a) that any regulations which provide for the control and managements of any township, village or settlement shall provide for such control to be exercised by a local authority, the majority of whose members shall be elected by Native householders residing in the area. This provision has been incorporated at the express request of the Natives Representative Council. At the outset I referred to a provision to which the Natives Representative Council objected. That provision is the one contained in paragraph (b) of this Sub-Section, providing for the framing of regulations to prevent over-crowding in Native villages and settlements and the keeping of excessive numbers of animals by its inhabitants. That paragraph was included on the recommendation of the Urbanised Areas Committee to meet a very definite evil, and it cannot be dropped. The reason advanced by the Council why it should be omitted, is that it should be left to the local authority to ask for the restriction mentioned. The Council did not apparently appreciate that even if the restrictions were asked for by the local authority, an empowering section would still be necessary to frame the regulations. But the matter goes further than that; a Native local authority representing Natives, cannot be relied upon to ask for remedies to prevent congestion and overcrowding, for the simple reason that the majority of Natives do not regard overcrowding as an evil which should be remedied. On reconsidering this clause during the last few days I came to the conclusion that the clause as now drafted is open to certain objections, and I would like to notify or to warn hon. members that in the Committee stage I intend to propose its replacement by an entirely new draft which will appear on the Order Paper, and that draft will give local authorities definite powers to frame by-laws and so on. But on the other hand it will be laid down that such local authorities may only be established if no European minority is living in that village, township or settlement. If such a European minority lives there then the powers which the Governor General has under the Principal Act will be retained for making regulations as at present, and that I think, will overcome the difficulties which certain hon. members have to the clause as now framed. Clauses 10 and 11 are consequential and self-explanatory. In Clause 12 we pass on from the Native Administration Act to amend an old Natal Law, namely Law No. 46 of 1887, relating to the marriage of Natives by Christian Rites, several provisions of which differ from the law of the rest of the Union and cause hardship to Natives. In one section of this law it is laid down that if a Native minor—and hon. members must bear in mind that in Natal, women are always minors—wishes to marry and his or her parent or guardian is dead, absent from Natal or of unsound mind, or if he unreasonably withholds his consent to the marriage, that minor may petition His Excellency the Governor General to grant consent to the marriage. This provision is quite out of date and it is unnecessary for such matters to be referred to the head of the State. The amendment empowers the Chief Native Commissioner of Natal to dispose of such petitions. The Clause further provides for the repeal of Sections 14 and 15 of this Law. The first of these sections provides that if a Native has at any time entered into a Christian marriage, he may never again, should that marriage be dissolved, enter into a Native customary union. Section 15 contains a similar provision in regard to the children born of a Christian marriage. Any Native contravening either of these sections is liable to prosecution and the union entered into by him is declared to be null and void. In other words the woman has no rights against the man and the children are illegitimate. Now I think I am right if I say that it is not in accordance with the true principles of the Christian religion to compel persons to adhere to its requirements, particularly if the compulsion takes the form of creating illegitimacy. The repeal of the two sections is, in my opinion, long overdue.

†*Mr. LOUBSER:

This is the first occasion on which the hon. the Minister of Native Affairs has functioned in this House in the capacity of Minister of Native Affairs. I am sorry that at the very first opportunity he levelled a charge against hon. members on this side of the House.

*The MINISTER OF NATIVE AFFAIRS:

It was only a joke.

†*Mr. LOUBSER:

The Minister realises now that he has committed a blunder.

*The MINISTER OF NATIVE AFFAIRS:

It was not a blunder; it was only a joke.

†*Mr. LOUBSER:

If the Minister withdraws it, then I shall leave it at that. With the exception of Clause 9 of the Bill, this side of the House would have offered no objection to the Bill. We seriously object, however, to Clause 9 as it reads at present. The Minister has now given us the assurance, however, that he will amend this clause on a later occasion. I am only sorry that ho did not take the House into his confidence. He told us that he had come to the conclusion that this clause, in its present form, was extremely dangerous. He knows that this side of the House would have objected strongly to the manner in which this clause was drafted, since he wants Europeans and non-Europeans to function on the same management. The Minister knows that that is the reason why he abandoned this clause in its present form, and I am sorry that he did not admit it openly. If Clause 9 had remained in its present form, we on this side would have opposed it tooth and nail. We would have felt that this was an extension of what we already have in the Cape, namely, that Europeans and non-Europeans serve together on a number of Boards. If he had left this clause as it now stands, he would have applied this principle to the other Provinces. We on this side feel that it is an extremely unsound policy to have Europeans and non-Europeans serving together on the same Boards. We have had experience of this in the Cape. We find it even in a body such as the Cape Divisional Council. It is remarkable how the feelings of some people with regard to the line of demarcation between European and nonEuropean is dulled, when Europeans and nonEuropeans sit together on the same Board. In the Cape Divisional Council, on which fourteen members serve, only one of whom is a non-European, we find that that nonEuropean is the Chairman of the Financial Committee.

*An HON. MEMBER:

Disgraceful.

†*Mr. LOUBSER:

It is disgraceful. The worst of all is that these Europeans who serve on that Committee must now address the non-European as “Mr. Chairman”. Recently a European deputation made representations to the Cape Divisional Council, and the matter which the deputation submitted to the Council was referred to a Special Committee of the Divisional Council. This deputation objected to the fact that the Divisional Council tried to compel its personnel to enlist for military purposes. Objection was then made to the Divisional Council, and the Divisional Council referred the representations to a Special Committee for consideration, and the only non-European person on that Committee was elected as Chairman. It is for that reason that we feel so strongly that Europeans and nonEuropeans should not serve together on the same managing body. We are glad that the Minister of Native Affairs has now abandoned Clause 9. But we want to go further. We take it that he has come to the conclusion that it is not right to have Europeans and non-Europeans on the same Boards, and we want to make an appeal to him to make his influence felt as Minister in the future in these matters where Europeans and nonEuropeans act on the same Boards. With the exception of this clause, we have no objection to the Bill, especially if the alteration which the hon. Minister is going to bring about meets with our approval; in that case there will be no strong opposition from this side.

†Mr. MOLTENO:

As the last speaker who has just sat down said, this is the first time the hon. Minister has addressed the House in his new capacity as Minister of Native Affairs. I want to congratulate him on the manner in which he has elucidated this Bill. Now, sir, the hon. Minister has referred in general terms to the Act which this Bill amends, but I want to refer to it in perhaps a little bit more detail in a moment, because I feel that the time has arrived that the Government should review the general scope of the Native Administration Act. But before I do that, Mr. Speaker, I want to refer to the actual provisions of the amending Bill. There are very few clauses which I want to refer to before going on to deal with the general principles involved. The first is Section 2, Sub-Section (9). The old section simply laid down that it was an offence to obstruct an officer or a chief in the execution of his duty. Now, this clause goes very much further. It starts off the same way as the old clause did—

Any person obstructing any officer, chief or headman in this section mentioned in the lawful execution of his duty.

That is as far as the old section went, but the new section goes on—

Or disobeying any lawful order or wilfully insulting such officer, chief or headman, or wilfully interrupting the proceedings of any meeting lawfully convened by such officer, chief or headman, or otherwise misbehaving himself in the place where such a meeting is held, shall be guilty of an offence.

Well, now, what I feel is that it should be made clear in all these cases that it is only when the officer, chief or headman is acting in the course of his duty that these words should apply. As it is, they are very vague, indeed. For instance, this “disobeying” any lawful order; the man might be ordered to hold the chief’s horse. Then, again, “wilfully insulting”. That might be when the officer or chief is acting in a capacity which has nothing to do with his duty. I hope that will be amended at a later stage. Then this reference to “otherwise misbehaving himself”. That is also very wide, those words are very wide, indeed; practically anything can be construed in that way if the will to do it be present. Misbehaviour needs some explanation, where such wide criminal offences are referred to in the later words of the clause. In Clause 7, which is to be the new Section 14 in the principal Act, the Minister has extended the scope of the original provision. The new clause says—

When the Minister has any doubt as to the correctness of any decision given by a Native Appeal Court on a question of law, he may submit that decision to the Appellate Division, and cause the matter to be argued before it, in order that it may determine the said question for the future guidance of all Native Commissioners’ Courts, and of all Native Appeal Courts.

The Appellate Division’s opinion on the correctness of a point of Native law is to be sought without waiting for a conflict in the Courts. That, I believe, is a sound principle, but I just want to draw attention to the fact that the new clause ends up with the words—

For the future guidance of all Native Commissioners’ Courts, and of all Native Appeal Courts.

Under the original section where the opinion of the Appellate Division was sought in the case of conflict between the Courts, the words were that the decision of the Appellate Division should be deemed thereafter to be a correct decision. Now, I do not understand why that wording has been changed. I feel that the old words should be restored. Well, now, Mr. Speaker, another point arises in Section 8, Sub-Section 2. That is a section dealing with appeals from the Native Commissioners’ Courts to the Native Commissioner. These appeals are not what we understand by appeals, where there is a record which goes before the Native Commissioner. Apparently these are complete re-trials. I hope the time will come when these courts are made courts of record, but that is not the position at the present time. In that clause as it stands at the present time, in re-trying a case, it is laid down that the court shall hear and record such available evidence as may be relevant, and as the court may deem necessary to hear. I do not know why these words have been inserted. The words which I am questioning in Section 8, Sub-Section (2) are these, in line 53—

The court shall hear and record such available evidence as may be relevant to any question in issue, and as the court may deem necessary to hear.

Now, as those words stand, the court will have a discretion to exclude otherwise admissible evidence, and that it is an unsound principle. If the evidence is relevant and otherwise legally admissible, this court, like any other court, should have to admit it. I shall make a suggestion in the Committee stage that these words be taken out. The only other clause in this Bill upon which I want to comment, is Section 9, introducing a new Section 30 in the principal Act. There provision is made for local authorities, for Native communities in peri-urban areas. The clause as it stands, gives practically no powers at all to the local authorities and therefore I welcome the Minister’s statement that he is prepared to reconsider that clause in order to include wider powers for prevention of congestion, permission to brew beer, the imposition of rates and so forth to be conferred on these local authorities. I hope the Minister will accept an amendment, or himself move one, to give those powers to the local authority. There is another matter which I feel should be inserted there, and that is some limitation upon the rating power. If rates are imposed by the local authority, there should be some limitation of that power. It may be necessary to raise the maximum limit, but there should be a maximum, such as is imposed on village management boards and municipalities.

The MINISTER OF NATIVE AFFAIRS:

What do you suggest?

†Mr. MOLTENO:

I do not think the maximum should be higher than 2½ per cent. I want to emphasise this, that communities such as these are, nomally speaking, too poor to provide on any decent basis, the amenities which are required. The necessity will have to be faced in relation to these semi-rural, peri-urban communities that subsidisation of their local services will have to be provided either by the Central Government or by the provincial or local authorities.

The MINISTER OF NATIVE AFFAIRS:

If you will move that at the Committee stage I will accept it.

†Mr. MOLTENO:

I am obliged to the Minister, I feel there should be a limitation, more particularly as it will be necessary to subsidisie the local services. These are the remarks I have to make about the actual provisions of the Bill itself, but as I have said, I feel that the time has come when the Government should be prepared to review the whole scope of the Native Administration Act. I personally wonder how large a number of the public of this country know exactly what the powers in this Act are. Before dealing with that I want to refer to certain principles. This country is involved in a war in defence of the principle of democracy, and that being so, I do not think it is harmful sometimes to consider what exactly is involved in the word “democracy”. Something is involved in that word which goes very far beyond the mere right to vote. All communities limit the right to vote to some extent amongst their citizens, though very few are as drastic in their limitation as we here in South Africa, although that limitation here is capable of some sort of superficial justification, on the ground of the gap between the civilisation of one section and another. I personally don’t accept that the discrimination is based on civilisation, but at all events a logical defence can be made for the limitation of the right to vote in this country. But I want to say that the right to vote is merely a safeguard of other rights which are of far more value. The best description of these rights is contained in two phrases, firstly, the sovereignty of Parliament; and, secondly, the rule of law. The sovereignty of Parliament simply means that Parliament, however composed, makes the laws, and the Executive administers and carries out those laws. The advantage of having Parliament make the laws is that those laws are publicly discussed and publicly criticised. The second principle, the rule of law, is that no man shall be deprived of his personal liberty, or his property, except after a clear charge in the ordinary Courts of law proved by evidence to the satisfaction of an independent Judge. I am going to show that the present Native Administration Act sets aside both those principles in their entirety for the majority of the population of this country. Perhaps the best non-technical definition of the rule of law has been given by the late Lord Chief Justice of England, Lord Hewart, in his book entitled “The New Despotism”. As I am quoting from this work, I should like to say that in my view anybody who is a candidate for admission to the Civil Service of this country, should be required to write an examination on this book. Lord Hewart says—

To summarise the matter, it may be said that the “rule of law” comprehends and denotes the following principles: 1. No one can lawfully be restrained or punished or condemned in damages, except for the violation of the law established to the satisfaction of a Judge or jury or Magistrate in proceedings regularly instituted in one of the ordinary Courts of justice. The rights of personal liberty and of freedom of speech, the liberty of the Press, and the right of public meetings are all a result of the application of this fundamental principle.

Now, sir, the proper sphere of this Parliament is to make the laws and of the Executive, not to legislate, but to carry out the law, and yet in recent years there has been the tendency for this House and Another Place, to abdicate their functions, holus bolus, not in respect of matters of detail only, but in larger fields of public relations to abdicate their rights in favour of the Executive, and also to define the powers of the Executive in such wide terms that the Courts can exercise no check upon the Executive as they exercise the powers conceded by Parliament. I shall illustrate how this works in reference to the Native Administration Act, and I say that such a system is not democracy, it is tyranny. Now, sir, I am not concerned in referring to this matter, to blame the Civil Service or to criticise in any particular respect the use they have made of their power. It is the principle of conceding these powers that I am attacking. If it be thought that I am making some sort of attack on the administering officials, let me reply to that in the words of Lord Chief Justice Hewart.

He says in referring to this particular principle—

Let nobody be so foolish or so flippant as to suppose that any attack is here intended upon what it is a commonplace to describe as the best civil service in the world. In a treatise upon photography, as somebody says, one may assume the existence of the sun. In remarks upon the mischief of bureaucracy one may assume the excellence of the civil service. Yet it may be as well to remember that high capacity and ardent zeal never need to be more carefully watched than when they appear to have entered with all their might upon a wrong road.

Well, sir, he was referring to the British Civil Service. I am not necessarily going to put my praise of our civil service as high as that, but for the purposes of argument I am prepared to assume that it is the same. Well, now, sir, that is my answer to any suggestion that I am criticising individuals, or that I am criticising any personnel of the administrative service of this country. It is the principle which is dangerous and the reply to any charge such as I have just referred to, could not be put in more dignified or clear language than in the words I have just read out. Now I want to come to the application of this principle to Native policy, and I want to submit this. There may or may not be a reason why the Native population of this country should have limitations placed upon their right to vote. But there are no reasons justifiable on any democratic ground why those laws which are made for them should not be made by Parliament in the ordinary way, and there is no reason why power should be given to officials which take away the ordinary protection of the courts. Now I want to refer to some of the powers that are given in this Act, because I doubt whether the public of this country realise how far they go. Section 3 of the principal Act, which this Bill seeks to amend, in SubSection (1) enables a tribe to agree to a contractual obligation incurred after having-been adopted by a majority of the adult male members of the tribe present at a public meeting convened for the purpose. In SubSection (2) the written certificate of the Native Commissioner that the contract or liability referred to has been adopted in terms of Sub-Section (1) is conclusive evidence of the fact. If ever there was a section excluding the courts from adjudicating upon a contract, this is it. The official who is responsible is also the official who is the judiciary in cases of that nature, to decide whether a legal obligation has been undertaken. Section 5 of this principal Act, in the first paragraph, gives the Governor-General power to define the areas of a tribe. In other words, any tribe of this country, whatever its historic rights may be, can have those boundaries defined for them. I am not suggesting that these are often defined in a way detrimental to the tribal rights, but the point is there is no judicial safeguard against it. The second paragraph of that clause says that the Governor General may, whenever he deems it expedient in the general public interest, order the removal of any tribe or portion of a tribe or any Native from any place to any other place within the Union, upon such conditions as he may determine, provided that in the case of a tribe objecting to such removal, no such order shall be given unless a resolution approving of the removal has been adopted by both Houses of Parliament. Here in the individual case there is a complete suspension of the right of habeas corpus, the most fundamental of all democratic rights, the right to personal liberty, that can possibly be imagined. In a later section, Section 25, it says—

From and after the commencement of this Act, any law then in force or subsequently coming into force within the areas included in the schedule to the Native Land Act, 1913, or any amendment thereof, or such areas as may by resolution of both Houses of Parliament be designated as Native areas for the purposes of this section, may be repealed or amended, and new laws applicable to the said areas may be made, amended and repealed by the Governor General by proclamation in the Gazette.

I wonder whether this House realises that the powers of the House have been entirely abrogated in active reserves. Powers like that should never be conceded to anybody in any democratic country, the principle is entirely unsound. Section 2 reads—

Save where delay would, in the opinion of the Governor General, be prejudicial to the public interest, no such proclamation shall be issued unless a draft of its provisions or of its principal provisions, shall have been published in the Gazette at least one month previously; but the omission of such publication shall not invalidate any such proclamation.

In other words, the ordinary responsibility for the promulgation of the law has been lifted, so that we may have the administration under this section entirely setting aside any law of this House. I wonder how many people know the extent to which the powers of Parliament have been abrogated. In Section 27 the Governor General has power to make regulations affecting the rights which Lord Hewart says are protected by the rule of law. These regulations apply to the prohibition and control of gatherings or assemblies of Natives and generally for such other purposes as he may consider necessary for the protection, control, improvement and welfare of the natives, and in furtherance of peace, order and good government. My point is here, the Governor General, in this clause is constituted the sovereign authority. Section 29 constitutes the vague offence of promoting hostility between natives and Europeans. In interpreting this section, a wellnigh impossible task is imposed upon the judiciary. The interpretation they have given to that clause has been a restricted one, but nevertheless the fact remains that the offence is utterly vague. When the accused is convicted under that sub-section, that is not the end of the matter, because then there is power given to the administration to do something which, as far as my experience goes, is unprecedented under any democratic system—i.e. to supplement the Court’s sentence. For instance, the power is given if the accused is a native, to send him to any scheduled native area, and if he is not a native he may be removed from such area. These are some of the main provisions of the law which this Bill is amending, and, as I say, make no allegation against anyone, and I know the present Minister is not responsible for this law. But what I am suggesting is that it is high time that these powers given under this law are changed. They make a mockery of democracy for the Native population. Democracy does not just mean the right to vote—the right to vote is the least of all democratic rights. The right to vote is only there as a safeguard, and the right to vote is common to democracy and to dictatorships—even in Germany, under the Hitler regime, people have the right to vote. The community has a right that any law before being passed shall be discussed in a Sovereign Parliament, with the full light of publicity on it, and the power of making regulations should only be conferred on the Executive for the purpose of carrying out the provisions of the law. This Native Administration Act suspends for the Native people what protection Parliament or the Courts can give them. And for that reason I wish to take this opportunity of entering a protest against these powers under which the people I represent are governed. And to express the serious hope that this whole subject will be reviewed by Government at no distant date.

†Mr. HEMMING:

My hon. friend who has just sat down has drawn attention to certain matters of which we have been fully aware for many years. I, too, share the hope he has expressed today, that in the not too far distant future those powers to which he has referred will be reviewed, and that the administration of the Native people will be placed on a footing of greater parity with the other sections of the community. Unfortunately we are faced with the position today that public opinion has not yet been sufficiently enlightened on these matters with which we are dealing. Parliament now proposes to make these very necessary changes, so on this occasion I do not propose to deal with the general principles which my hon. friend has gone into; I only wish to say that anyone who has studied this question must realise that there is nothing very much wrong with the criticism he has made. Facing up as I must to the realities of the situation I wish to touch on some of the provisions of the Bill before this House, and I wish to say that in some respects I find in it signs of a very definite improvement. In relation to this question of protecting officers, i.e., Magistrates, chiefs, headmen and others in the execution of their duty, I have no hesitation in saying that that protection is proper and reasonable. Every public officer is entitled to protection whilst in the performance of his lawful duties. What I am afraid of is that an official who is unfit for his job may bolster himself up by means of the arbitrary and wide powers contained in this section as it stands, and that is why I should like the provisions of Sub-Section (9) of Section 2 to refer clearly and only to “wilful obstruction of an officer in the execution of his lawful duties”. I do not like the phrase “wilfully interrupting”. It seems to me that a provision of this nature in the wrong hands could be used for the purpose of preventing proper discussion. We in this House in the course of discussion interrupt and presumably we interrupt wilfully. Now, if that is done at a Native meeting under this section it would be an offence. The whole question should be governed by “the intention” to obstruct. If the intention is to obstruct a person in the execution of his duties, then the offender should be punished, but the phrase as it reads now is undesirable and in the wrong hands may be abused. I do not suggest that the senior members of the civil service or of the Native Affairs Department or the majority of Native Affairs officials would appeal to this particular section, but I think it is my duty now and here to say that in my opinion the standard of some of the men who are entering the Native Affairs Department today does not bear comparison with the men you had fifteen or twenty years ago. And for that reason I urge that you must not bolster up a weak official by giving him arbitrary powers. That is not the way to administer Native affairs—that is the road which leads to maladministration. I hope that in the Committee stage the Minister will so amend this particular clause as to make it quite clear that the purpose is solely to deal with a person who wilfully obstructs the proceedings, or wilfully insults an officer in the execution of his duties. The next clause I desire to touch on is No. 5. I am not very happy about the wording of 5 (2). I, of course, realise that you have a situation on the Witwatersrand where Natives of different tribes are living outside tribal areas and it may be difficult to come to a conclusion as to what Native law you should apply. My fear is that in legislating for such cases that you will cut across established practices in tribal areas, and I am very anxious that it should not be possible for an alien tribal minority living in a recognised tribal area to impose their laws on the majority. That danger could be avoided by a little reconstruction of this clause and I hope that in Committee the Minister will consider amending the clause. In regard to Clause 7, as I read it, it does not seem to carry out the intention of the legislation. It might be interpreted in its present form as being there merely for the future guidance of Native Commissioners in relation to the particular case which has been stated. What I would like to see is a clause making it clear that the decision of the Appellate Division shall be binding as the correct interpretation of the law, and in Committee I propose to move an amendment to that effect making it clear that the intention is to regard the Appellate Court’s decision as the correct interpretation of the law for the future guidance of lower courts. On Clause 8, to which my hon. friend referred, I don’t think I need say anything except that I am in agreement with him in his remarks. The evidence is either relevant or irrelevant. I am sure the Minister will realise the justice of the criticism. And now, finally, I would refer to the only clause in relation to which the Natives’ Representative Council passed any criticism at all and that is Clause 30. I regard this clause as a step in the right direction. We are continually telling the Native people that they lack responsibility. I, on one occasion, addressing a meeting of Native teachers, told them that, and I was met with this response: “How can you expect us to exercise responsibility if you never give us any responsibility to exercise?” I regard this Clause 30 as a step in the right direction, except that in its present form it does not seem to me a full step at all. You are proposing to give the Governor General the power to make regulations, and thereby to create local authorities which will have no power at all. We for our part could not accept a clause in that form, and we are very glad to hear that the Minister intends to put a new clause before us in Committee. The hon. member for Malmesbury (Mr. Loubser) dealt with the situation which might arise if you had an African majority on a Council dealing with the affairs of both Africans and Europeans. Well, that is a political matter which I do not propose to touch on. Our proposal amounts to this, that we are going to suggest to the Minister that when an area is exclusively occupied by Natives he should give the Natives a Local Board on the same basis as a Village Management Board with responsibility to the Governor General instead of to the Administrator. In that way you will develop civic sense and you will develop their sense of citizenship. I cannot see that my hon. friend need have any fears in such a case. The words “exclusively occupied by Natives” have certain dangers in them. You may have an area where three-quarters of the population are Natives and the rest mixed—not Europeans. There you could not appoint a local authority under this clause. We suggest that the Minister in drafting his new clause should take into consideration this aspect—and provide that if there is a majority of Natives living in a particular area and the remainder are non-Europeans, for the purposes of this Bill that area should be regarded as “exclusively” occupied by Natives. I do not think there is much more to be said. The fact is that the Natives’ Representative Council has approved of this Bill in the main, and therefore it may be asked why we should interest ourselves in it. We felt notwithstanding the fact that the Natives’ Representative Council has agreed to the Bill in general, it is our duty to go into it in more detail, and see that situations are not created which the Natives’ Representative Council may not have visualised. If these safeguarding amendments which we have suggested are agreed to I do not see why this Bill should not come from the Committee as an agreed measure.

†Mr. PAYN:

I do not doubt that many of us listened to the remarks of the hon. member for Cape Western (Mr. Molteno) with considerable interest when he spoke about democracy but I would remind him that the Natives in this country have always been accustomed to dictatorships. The old chiefs, who governed them for hundreds of years, were dictators and the tribes obeyed the rule of the chief and the sudden impact of civilisation has not yet been assimilated by the great masses of the Natives, nor do they understand thoroughly the meaning of the word “democracy.” In fact I doubt if many of us realise the real meaning of the word. But the fact remains that the Government of the old Cape realising this, established the system of government by proclamation, and today the Union Parliament has to a large extent followed out these principles and it seems to me that the state of civilisation in which the masses of the Natives are, makes that unquestionably for the period of transition the only possible way of ruling the Natives. This House wisely, I think, in 1935, passed the Native Acts in this House, in which we created the Natives Representative Council, giving the Natives some say in the government of the country. We had a similar system in the Transkei as long as 40 years ago when we constituted the Bungha and that body is becoming a body of more enlightened men, and they understand to a certain extent what democracy means, and the responsibilities thereof, and here I support the hon. member for Transkei (Mr. Hemming) where he says that the time has arrived when these bodies should be given some responsibility. In the past they have been purely advisory—they have never had the right to tax themselves or to participate in their government. And after 40 years we feel these bodies should face up to the responsibility of citizenship and learn to govern themselves. We have created Native advisory boards in urban areas—we have tried to help the Natives to help themselves, but so far these advisory boards have not been a great success, they have never been able to realise their responsibilities to their brother men. That also applies to the Joint Councils. I was a member of the Joint Council in the Transkei. We met together to discuss problems facing the country as a whole, but we found that at these meetings the Natives did nothing but grouse, make complaints against the Europeans and the Administration, and never brought forward anything constructive. And that is where the Native fails as a whole. I would like to support to a certain extent what my hon. friend said about the officials in the Native Territories. Owing to the war we have imported into our Native Territories certain young officials who have been rather hasty in giving decisions and so on, and I would urge on the authorities the necessity of only putting in the best men, men who have a good knowledge of the Natives and understand the Natives. Because it is there that the Native gets to learn and gets to understand the European and the power of the law, and if these powers are not properly understood and exercised it will create great bitterness which will never be overcome. That applies more particularly to the police. They get into touch with the Natives every day and the authorities should realise that that is one of the important factors in our Native administration. As a member of the Native Affairs Commission I should like to say this, that I think the Administration carried on by the Native Affairs Department today is more sympathetic and more efficient in every way, and in closer touch with the Natives than ever in the past. I am sure that we all trust the new Minister will, when he has had more experience, realise the difficulties he has to contend with. I understand he is going through the Native Territories which will bring him into closer touch with the Natives, and I hope his period of office will be a period of great use and service to the Natives, and that he himself will in that period gain the respect of the House and of the Natives—which I am sure he will do—because he has always taken a keen interest in Native affairs. But I would again urge the necessity of the Department being careful in choosing their officials for the Native Territories. In conclusion I would say to hon. members representing Native interests also that while working for the Natives they should make them realise their responsibilities. It is all very well to make laws but laws will never bring about benefits to anyone—it is the appreciation of these laws which will bring about improvements, and I am afraid that the Natives of this country have not yet learnt to realise that they have responsibilities to us in the same way as we have responsibilities to them.

†The MINISTER OF NATIVE AFFAIRS:

I appreciate the way in which this Bill has been received by the House and the constructive criticism which has resulted.

†*I do not think it is necessary to say anything in regard to the remarks which were made by the hon. member for Malmesbury (Mr. Loubser). I think he will be satisfied that I personally am going to put an amendment on the Order Paper, and if he is satisfied with that, we can overcome the difficulty in that way. He was a little annoyed because I made no reference to his side of the House when I announced that I would move an amendment, because they, too, proposed that this clause should be amended. I know that they offered certain objections to Clause 9, and for that reason I decided to bring about the amendment.

†Now, with regard to the point which the hon. member for Cape Western (Mr. Molteno) raised. He gave us a most learned dissertation on democracy. Well, I am not qualified to reply to him in the language which he used, but I would just like to say this: he had a complaint against the Executive, and he spoke of the almost unbridled power which the Executive has, but let me say this: unless you have an Executive it is impossible to carry out your laws. Is Parliament to do it itself? And we see true democracy in this House. The Natives have three representatives here who can get up in this House, and if any Civil Servant does anything which is wrong, or does anything which they do not agree with, they can cry to high heavens and expose an injustice, tyranny or irregularity. That is my understanding of democracy—my view of democracy is the right to ventilate grievances, and expose anybody without fear or favour—and I think hon. members over there have that right. But the hon. member has made certain suggestions here, together with the hon. member for Transkei (Mr. Hemming). I shall be glad if the amendments suggested by those hon. members are put on the Order Paper, so that I can study them before they are moved in the House, because I am prepared to agree to certain alterations in regard to Clauses 2, 7 and 8. The hon. member’s main complaint was against Clause 5 of the original Act on the subject of deportation. I think it is only right that I should say that no man is deported until a full enquiry is held, and he is asked to be present, and he has the right to call witnesses. In the case of a tribe being moved, there you have a different proposition, because if there is any objection they can only be moved with the agreement of both Houses of Parliament, and therefore I do not think that any Government could arbitrarily abuse these powers. A man can only be deported if an order has been made against him, and if he refuses to obey the order he is convicted. Such a conviction went to the Supreme Court last year and it was quashed, which shows that the Governor General has not got altogether arbitrary powers of deportation. I can give a number of cases to show that the right of deportation is a very necessary right. Let me quote one instance. I have in mind a case where a chief and another man murdered a European named Collier. The chief confessed to the crime, he was convicted and sentenced to death. On appeal, however, the conviction was quashed on technical grounds and the result was that the man was released, and went back to the area where he came from and where the offence had been committed. Grave repercussions would have arisen in a case of that kind. These men after having been convicted got off on technical grounds, and it was found necessary in the circumstances not to allow them to return to the area they came from. It is desirable that there should be powers of deportation in such cases. I don’t want to go into that point any further, except to say that I doubt if the hon. member can refer to one case where these powers have been arbitrarily or unfairly employed. Now, in regard to Section 25 which deals with the power to legislate by proclamation in Native areas—I think that has worked very satisfactorily, and I want to remind hon. members that the regulations are always laid before Parliament and Parliament can veto such regulations. Hon. members have every chance of exposing anything that is wrong, and the idea of dealing with administrative matters by means of proclamation is to avoid taking up the time of this House and to keep such matters as far as possible outside the political arena. And while on this point I must compliment hon. members representing Native interests in that they have done their best to keep politics outside these matters. Then the hon. member spoke on Section 29. I feel that this is a very necessary section, intended to deal with mischief makers stirring up trouble between black and white. The hon. member for Transkei raised the point that officials might be inefficient and therefore use the provisions of Section 29 to bolster up their powers. I think it would soon be known to the Department and the Minister if an official tried to do that, and he would soon be dealt with. He might get away with it once but not a second time, but knowing the officials as I do I don’t think there is any likelihood of anything of that kind occurring. I doubt if anywhere in the world you will find a finer, more conscientious set of public offcials than in the Native Affairs Department. In regard to Clauses 5, 7 and 8, the same remarks apply there as what I said in reply to the hon. member for Cape Western. The hon. member for Tembuland (Mr. Payn) raised the question of Clause 9. I definitely agree that Natives must be given responsibility to deal with local matters in their own areas. How can they ever learn to take an interest, how can they ever be expected to carry any responsibility unless they have responsibility placed on their shoulders, and have definite powers in their own local areas for parochial matters. They should have control over their own institutions. That is the only way in which they could ever learn to govern themselves. I do not think there is any other point I have to deal with and any other matters can be dealt with in Committee.

Motion put and agreed to.

Bill read a second time; House to go into Committee on the Bill on 26th February.

OLIPHANTS RIVER IRRIGATION WORKS.

Fourt Order read: Second reading, Oliphants River Irrigation Bill.

*The MINISTER OF LANDS:

I move—

That the Bill be now read a second time.

The object of this Bill is to write off a sum of £252,000 on the Oliphants River Irrigation Scheme. To give the House a perspective of the reason why we asked for this writing off, I think the best I can do is to give the House the historical background of that scheme from the beginning. In 1909 this scheme came to the fore, and the object was to provide water from the Oliphants River by means of a weir and to irrigate 7,000 morgen. It was calculated that the costs would be £155,000. In 1911 a Board was established, the Oliphants Irrigation Board, and they made application for a loan of £155,000, and special legislation, viz., Act No. 5 of 1912, was passed to make provision for the construction of that weir, with the understanding that the Government would maintain the dam for not less than 15 years. The loan was repayable within a period of 60 years. In 1913-T4 the work was commenced, but they did not proceed very far when they found, after further investigation, that there was not sufficient water to irrigate the 7,000 morgen. It was then decided to build the dam somewhat higher, and to convert it into a storage dam. At the same time, they decided that there would then be more water for the 7,000 morgen, and they then bought more land. A large piece of land was bought at the lower end of the scheme. Let me say immediately in connection with that land, that the object was to make it a settlement. The land at the lower end of the settlement is nearly at sea level. The water is not more than four or five feet above sea level, and consequently the difficulties owing to brack are very great.

*Mr. S. E. WARREN:

It is a very broad valley, is it not?

*The MINISTER OF LANDS:

It is a very broad valley, and when the river is full, it rises to within a few feet of the banks. I think it was a mistake in those circumstances to establish the settlement there. Let me say this, that the costs of that conversion work was to have cost £505,000 instead of £155,000, and then it was decided to repeal the original Act of 1909, and Act No. 28 of 1917 was then passed to construct the combined scheme. The dam was then built at the top end, and the agreement was that the Irrigation Board would pay one-half of the sum of £505,000, the estimated cost of the conversion scheme, viz., £252,000. When that scheme was completed, 180 miles of canals were made, and instead of costing £505,000, it cost £601,566.

*Mr. S. P. LE ROUX:

Together with the canals?

*The MINISTER OF LANDS:

Yes, together with the canals, it cost £601,566. The Irrigation Board accepted liability for one-half of the debt, and the rest was by way of subsidy. Thereafter a sum of £22,655 was spent on the scheme in respect of maintenance, improvements and drainage, which was very expensive, and also to line a certain portion of the canals with concrete. The sum of £22,655 does not include the ordinary current costs of administration. The administration costs amount to approximately £7,000 per annum. After the scheme had been in operation for some years, it was discovered that there was not sufficient water in the dam to irrigate the land, and they then had to see whether they could not increase the water so as to irrigate the original land, that is to say, the 7,000 morgen, and also the 3,000 morgen which were later purchased, a total of 10,000 morgen. And that is the area which is still under irrigation today. They then investigated the various tributaries of the Orange River and the Doorn River in an effort to find another place for a storage dam, but it was found that the best place was just below Clanwilliam, and that is above the old dam to which I have referred. The construction of these two dams was started in 1932. It is a concrete dam, and in 1935 the dam was completed at a cost of £253,780. The result was that they could also irrigate the additional 3,000 morgen. At the same time, immediately after the completion of the dam, the uppermost dam, 14 miles of canals were constructed in order to irrigate certain lands on the right bank of the river. Today they have their own Board there, the Clanwilliam Irrigation Board, and those 6,000 morgen are now being irrigated. As I have said, the Oliphants River Irrigation Board had to repay £252,000 within a period of 60 years, and the Act provided that they should pay a tax, namely, in respect of redemption, interest and maintenance, of £1 12s. 6d. per morgen. Immediately thereafter and for a number of years, the position which obtained there was such that it was impossible for the settlers to pay this sum of £1 12s. 6d. per morgen. The then Minister was compelled to make use of the powers which were granted to him under Section 6 of Act No. 38 of 1922, under which he could give relief to those settlers, with the result that he reduced that sum from £1 12s. 6d. to 7s. per morgen. The settlers paid it and gradually, year after year, the sum was increased until today it is £1 per morgen. It will be understood that that sum is altogether insufficient to pay for redemption, and for the maintenance of those morgen. The accumulated interest on this £252,000 already stands at approximately £20,000, i.e., arrear interest. The Act to which I have referred, under which the Minister has the power to afford relief, is operative for a period of 15 years only. The period in question expired as far back as 1939. The Government has no right to grant further relief, namely, to reduce it from 32s. 6d. per morgen to 7s., which has now risen to 20s. The Irrigation Commission which was appointed some years ago was asked to go into the matter and to submit a report in connection with the position at Oliphants River, and the result of their report is the recommendation which is now contained in this Bill, namely, the writing off of the sum of £252,000 together with the accumulated interest. I now come to the different clauses. I do not think it is necessary to deal with every one of them. I think they are self-explanatory, except perhaps Section 6. Section 6 gives the Government the right to bring the levy on the irrigable area up to a maximum of 25s. per morgen.

*Mr. S. E. WARREN:

What do you mean by which is irrigable or benefits directly or indirectly by water from the works and has been included in the schedule or irrigable land?

*The MINISTER OF LANDS:

Well, there are private owners too. They now fall under this Act. The levy will not exceed 20s., and on those 6,000 morgen it will go up to 25s. The reason for the difference between the two areas is this: The Department will be responsible for the maintenance of the Government scheme and for the canals, whilst in the Clanwilliam area they are responsible for that themselves, and consequently they pay only 20s. instead of 25s. Then I think I should also explain Section 12 to the House. When the original piece of land was bought, a certain piece of land fell under it which belonged to the Hottentot reserve in the vicinity, and in exchange for this land it was agreed that they would get water for 300 morgen on their reserve, in respect of which they would have had to pay £1 12s. 6d. Now they get it for 25s. They are also entitled to get more than 300 morgen. They can now go up to 500 morgen. I think I have outlined the full history of the scheme, and the reason why we are asking the House for the writing off of this amount.

†*Mr. S. P. LE ROUX:

I do not want to oppose this Bill in any way. The Minister proposes to give certain concessions to irrigators, and this is welcomed by all. I want to express my regret, however, that the Minister, in coming forward with a Bill such as this, did not follow the usual procedure, namely, to bring the Bill to the notice of the Select Committee on Irrigation. In such a Bill there are frequently involved proposals, and it would have been much better if, in the circumstances, the Minister had first referred the Bill to the Select Committee, so that we could become acquainted with the provisions of the Bill. The hon. Minister did not do that, and the result is that it is impossible for hon. members in the course of a cursory examination of the Bill to become conversant with the provisions of the Bill. I am also sorry that the hon. member for Namaqualand (Lt.-Col. Booysen) could not be here this afternoon. This is a matter which particularly concerns him, and I am certain that he would have liked to be present at this discussion, and for that reason I am sorry that this Bill must be discussed this afternoon. The Minister told us that the provisions of this Bill aimed at the writing-off of a loan which was given to the Irrigation Board, and the interest on which had accumulated until it had reached a large figure. There we agree with him, and it seems to me that he is taking further steps, and that he has not explained those steps to us, namely, that he is going to abolish the Oliphants River Irrigation Board. We are surprised, if that is the case, that the Minister did not tell us anything about it.

*The MINISTER OF LANDS:

The Board is restored in Section 5.

†*Mr. S. P. LE ROUX:

But the Government is taking the whole scheme over.

*The MINISTER OF LANDS:

Yes, but the Board is restored under Section 5.

†*Mr. S. P. LE ROUX:

I am glad to hear that. I just wanted to be clear on this point. If that is the case then I am satisfied. It would have been a pity if we had abolished this local government. I hope, in so far as the provision with reference to the Kamanassie Irrigation Board is concerned, that the Minister got into touch with them.

*The MINISTER OF LANDS:

We are retaining their rights.

†*Mr. S. P. LE ROUX:

Were they consulted?

*The MINISTER OF LANDS:

No, it was not necessary. We did not interfere with their rights. On the contrary, they are being favoured.

†*Mr. S. P. LE ROUX:

That is precisely the fault which I find with the Minister in connection with this matter. Even though you favour people, you must surely tell them that you are doing so. The Minister did not submit this matter to these people. There is a provision in Section 13 of the Bill in connection with the Kamanassie Irrigation Board, and those people know nothing about the proposed steps. The Minister says that this is to their advantage, but it is nevertheless advisable to keep these people informed. I hope the Minister will not do this sort of thing again in the future. I intended moving that this Bill should first be referred to the Irrigation Committee, but after the explanation of the hon. Minister that there is no question of taking away the rights of these people, I shall no do so, but I hope that in future the Minister will keep his Committee informed when introducing Bills of this nature.

*Mr. S. E. WARREN:

In normal circumstances, under the ordinary laws an irrigation district is proclaimed and the irrigators under that scheme elect their own Board. Those people who are responsible for the maintenance, who have to pay for the maintenance of the scheme, elect their members who then account to them. I have discussed this matter with the hon. member for Namaqualand (Lt.-Col. Booysen). Unfortunately he is ill and could not be present this afternoon, but what the irrigators felt was that they had no say in the election of this Board. Under Section 5 the Minister may appoint a Committee consisting of the director or his representative, who may act as chairman, and at least four other persons to advise him. There is no limitation with regard to the period of the appointment. The Minister may appoint these members for a period of 40 or 50 years. There is no limitation. I would like the Minister to look at Section 5. Under that section he may appoint four members to assist him in connection with the distribution of water and things of that nature. It is not the Minister’s fault that this scheme had such a long and unfortunate life. That part of the country is dry and they have converted a desert into a pleasure garden. These parts can produce food. We are grateful that this scheme was accepted. It is true that more was spent there than might have been spent in other parts of the country, but I have no objection to the writing off of this debt. I am glad that the Minister is moving it. I may be wrong, but I have never lost confidence in local government. I have discovered that local governments can render very good services, and that it can maintain its own works. This Board is now being abolished, and the Minister is appointing an advisory board in its place. The members of that Board are appointed by him, and it was felt—I am repeating now what was said to me by the hon. member for Namaqualand—that people were frequently appointed, not on the ground of efficiency, but because of political reasons and it was felt that these people should have the right to elect their own Board. There may be certain irrigation boards who do not carry out their duties as they should, but my experience is that these Boards render very good services to the country. They are doing unselfish work without receiving any payment for it. It is their furrow. They see to it that no damage is done to it, and they maintain it as cheaply as possible. According to the Lands Settlements Act, No. 8 of 1912, a settler is regarded as an owner. When the settler enters into his lease, he is looked upon as the owner. He gets the right to vote, and he has to pay taxes. If the settler gets into arrear with his instalments, inspectors are sent to press him for payment. I feel that if the Government were to leave the administration and matters connected with this Board, in the hands of Irrigation Boards, he will be redering a service to the country. The director, the chairman of this Advisory Committee, may be stationed at Pretoria, and then there are four other members who advise the Minister. They can do as they please, and the result is that you will not have this cheap administration which you would get if the local people themselves were to govern matters. I do not want to say anything against the Department, but these people who are now being appointed are subject to definite rules, and I think it is unreasonable that the people who have to pay the taxes should have no say in the matter. The ordinary irrigation board is elected for a period of three years, and I do not believe that it is right to leave the discretion with regard to the period of the appointment exclusively in the hands of the Minister. The period should be confined to three years, just as in the case of an ordinary irrigation board. There may be all sorts of difficulties if the period is not fixed, and I think that the Minister will be wise to appoint these members for a period of three years. The distribution of water is left to the discretion of the department. Act No. 8 of 1912 makes us liable for taxes, but it also gives us a privilege. It gives us this privilege that we are entitled to a reasonable or a fair share of the water. A fair share is determined according to the size of your land. If therefore you think that you are being unfairly treated, you have the right of recourse, which you would not have if the distribution of water were left in the hands of the director or of the Minister. There was and there still is an idea that the irrigation department and the State should control all the water. I cannot but protest against this. I think it is wrong. The riparian owner is entitled to the water, together with the land he bought, and he has the right to demand his portion of the water, and that it shall not be left to the discretion of the State to do as the State pleases. The State may be as good or better than an Irrigation Board—I do not think so—but I do not think that it is right that the Department should dispose of the water and the rights to which the owners have a claim. I cannot agree that owners of irrigable land should cede their rights within the catchment area to someone else. There are quite a number of other points in connection with this Bill which can be improved, but that is my main objection. I believe in local government. I believe that these people should be responsible to the irrigators. I believe that these people should elect their own members, so that they will have local responsibility. It is only in this manner that you will get cheap administration. I feel therefore that this Bill goes too far. The Minister may say that there is a similar provision in Act 28 of 1927, but the fact that that Act is wrong, does not make this one right. I feel that this is a wrong step which will eventually lead to the dispossession of the rights of riparians. It is my duty to warn the Minister that he is doing a dangerous thing, and I feel that all of us will still regret what took place. I am acquainted with this scheme; I was there. In the first instance, mistakes were naturally made. The dam began to leak, and then the furrows had to be lined with concrete. There were other costs, too, and as a result of that the ultimate costs amounted to approximately £1,000,000. This is a loss which the State suffers, but I feel that the State will still get more than £1,000,000 out of it. I feel very strongly, however, that the control should be left in the hands of local people who are acquainted with the local conditions, and who are experienced. If that is done, things will not go wrong in this way.

†*Mr. HAYWARD:

If there is one section of the community which really deserves every penny it makes out of the soil, it is that of the agriculturists and irrigators. For that reason I am glad that the Minister saw his way clear to introduce this Bill, and I hope that what he did here in regard to the Oliphants River, will be extended to other schemes where it may be necessary.

*The MINISTER OF LANDS:

Deserving cases.

†*Mr. HAYWARD:

Of course, deserving cases. I should like to be put at ease about one point, and that is Clause 12 which mentions the decrease from 32s. 6d. to 25s. for water rates in the case of coloureds. If I understood the position rightly, a distinction has been made between the original owners and the settlers in regard to the water charges, and I want to appeal to the Minister to treat the coloureds as leniently as possible, for they are the poorest of the poor.

*The MINISTER OF LANDS:

They get the same as the other people.

†*Mr. HAYWARD:

Then I have no further objection to the Bill.

†*Mr. J. H. CONRADIE:

I fully realise the necessity of the Bill. Exceptional circumstances prevail in regard to this irrigation scheme, but I am only afraid that this is the first Bill of a whole series which the Minister will introduce afterwards in regard to other irrigation schemes, but I am worried that this Bill is going to be a kind of specimen Bill for other irrigation schemes where the Government has also been writing off. The Government will then come along and say that it has written off so and so much and now wants to have a say in the control, complete say in the control of the irrigation schemes. I believe we are going a little bit too far. I cannot agree with Clauses 4 and 5 of the Bill. If the Minister wants to have a say in the matter he should have a few of his nominees appointed to the Board, but since the Board will now be appointed in accordance with Clause 5, it means that it will be appointed by the Minister and the Minister only. He appoints his nominees and not the irrigators—they have no voice in it. The four or five persons he appoints can do as they like and the irrigators have no say in it. As a member representing one of the largest irrigation districts, I want to warn the Minister against the dangerous principle he is laying down here. I do not mind if he takes over part of the responsibility, but he should not take the whole responsibility. The Minister may answer that the State is doing the writing-off, but we should also take into account what the people have contributed towards the development of those areas; that cannot be calculated in money only, but also in endurance and energy, which has enabled them to do their share for the development of those parts. We have a good class of settler along the big rivers, people who under the most unfavourable conditions transformed those parts into productive areas and we ought to acknowledge their share also in the control of the water. The Prime Minister told me, that this is the first one of a series of Bills he is going to introduce. I warn him that if the irrigators know that the Minister is going to have complete control when he does the writing-off, they will not be satisfied with it and I reckon that he will not be acting in the interest of the welfare of the irrigators in general when doing that. I hope that the Minister will allow himself to be persuaded to amend in particular Section 5 when we come to the Committee stage.

*Mr. GELDENHUYS:

I would fail in my duty if I did not say a few words at this stage, particularly in connection with the Minister’s remark that he is still going to introduce a series of Bills of a similar nature.

*The MINISTER OF LANDS:

I did not say so.

*Mr. GELDENHUYS:

The hon. member for Gordonia (Mr. J. H. Conradie) intimated that.

*The MINISTER OF LANDS:

But I did not say it.

*Mr. GELDENHUYS:

I am glad the Minister says that he has no intention to do so. I represent one of the largest irrigation schemes in the country, if not the largest, and I also feel that it is unfair that the Minister should usurp all this power. I agree with the writing-off, but as far as Clause 5 is concerned I share the feelings of the hon. member for Gordonia that it would be better if the Minister gave the Board which he intends appointing, a more local character and if rather he gave the settlers the right to elect a few representatives on the Board. That would give more satisfaction, and I hope that he will accept an amendment to that effect during the Committee stage. The Minister himself is now going to appoint all the persons.

*The MINISTER OF LANDS:

Apart from the Director of Irrigation, all the people on the Board will be irrigators.

*Mr. GELDENHUYS:

Yes, but who appoints them. I think it is desirable that they should themselves elect two or three members on the Board. That would create a much more satisfactory position. The Minister may appoint whatever persons he likes, there will always be dissatisfaction. That he should reserve for himself a certain measure of authority and control is quite right, but I believe that provision should be made for the irrigators themselves also having a certain measure of say in the composition of the Board. I furthermore notice that the Minister is going to exercise a certain power which may work out detrimentally in regard to the administration of the Act, and that is that he reserves the right to himself of cutting off the water when an irrigator is in arrear with his instalments. In other words, the settler concerned may suffer considerable damage as a result of such action. He may at a certain moment not have the money available to pay and in the meantime his products wither and his crop is ruined. That is most undesirable. Seeing that the Minister after all reserves the right to prohibit such a settler to transfer his land in such a case before the water dues have been paid, I am of opinion that there is sufficient provision in the Act to protect the financial interests of the State. We have the same provision in regard to the transfer of immovable property and it works very well indeed. That could also be applied here so as to ensure that the Government will not lose any money. As the Government has that power, it is not desirable that these further far-reaching powers should be granted to the Government, for in that case a person when he is one year in arrear with his taxes, may all of a sudden lose his water because it is cut off. I think that will be a great hardship and should not be done. That power may be abused, if not by the present Minister, then by someone else. For that reason I believe that the Minister should not introduce this power into the Bill. There is ample cover to gather the taxes under Clause 7 of the Bill, for the man will not have the right to transfer his land unless the arrear taxes have first been paid. That should be sufficient.

†*Mr. J. M. CONRADIE:

I also want to express my appreciation to the Minister for meeting these people by the introduction of this Bill which will mean that a large part of the capital debt will be written off. I cannot entirely agree with the Opposition’s attitude as regards the rights of the State. When the State spends so much money on irrigation, money of the taxpayer, it is but just that the State should keep the control in its hands and should control the water. I can well understand hon. members on the other side saying that people falling under this scheme should have the right to elect the Board. I agree with them that they should have the right to elect some of the members on the Board, but as the money of the taxpayers is spent for the public, the State should keep the power in its hands. I therefore hope that at the Committee stage the Minister will agree to the irrigators being given the right of electing a certain percentage of the members. Let the State have the majority, but allow the irrigators also to elect a few members.

*Mr. WOLFAARD:

I should like to make an appeal to the hon. Minister in regard to Clause 5. Hon. members on the other side say that the State has been writing off so much money, and should consequently have all the control. They now expect that the State should apply this principle right through the country, for where do we find an irrigation scheme on which the Government has not spent much money, and has given a large subsidy or written off hundreds of thousands of pounds? We are afraid that this will be the thin end of the wedge. Once it has been entrenched in legislation that the State through its Director of Irrigation and a Committee under him will control these matters in regard to Irrigation Boards, we are proceeding in a wrong direction. The Minister himself hails from a rural area, and he knows how, in regard to Government farms, the Government will settle its nominees there, but never all of them. In the past we had the position in the Cape that a Divisional Council always had the Magistrate as its Chairman, who, at the same time, represented the Government. That was changed because it was found that there might be better and more able local persons to act as Chairmen. But once it has been laid down in the written law that the Director of Irrigation shall be the Chairman of the Board, I am afraid that we shall have adopted a principle which will be copied in one Act after the other. The local people are, after all, the people who have the best knowledge of all the circumstances. I have every respect for the Director of Irrigation’s knowledge as an engineer, but very often the practical farmers will be able to propose the best solution for local problems. Assuming, for instance, that something goes wrong with a furrow, that erosion takes place, or that the furrow collapses, then they first have to get in touch with the Director of Irrigation.

*The MINISTER OF LANDS:

No, that is not the case.

*Mr. WOLFAARD:

But why, then, should the Director of Irrigation be made Chairman of the Board? Will he only be a rubber stamp? I want to ask the Minister politely to alter this clause, and to allow those people to appoint their own Boards. They know the position, and up till now have proved a success. I agree with the hon. member for Swellendam (Mr. S. E. Warren) that there should be a limit fixed for the period for which members are appointed. It should be limited to three years, so that after three years other people can be elected, I am afraid of the principle mentioned which may prove to be the thin end of the wedge. I earnestly appeal to the Minister to give the irrigators the right to elect their Boards, as otherwise we may be doing great harm to the work of the Irrigation Boards.

*The MINISTER OF LANDS:

I think hon. members are labouring under a misapprehension. First of all, I should like to explain that they have to distinguish between this scheme as a purely and exclusively Government scheme; and, on the other hand, private schemes. There is a very great difference between the two. I just want to say that in this case the people themselves have never yet elected a Board. It was never administered by themselves. As long ago as 1927 the Government took it over, and from that time onwards we controlled the scheme with the Board as it will now again be appointed in terms of this Bill. From 1927 the scheme has been controlled in this way, and this Board will be appointed for three years.

*Mr. S. E. WARREN:

Where is that? It is not in the Bill.

*The MINISTER OF LANDS:

That has been the custom all those years. Every three years a new Board is appointed. It is, of course, possible to re-elect some of the old members. I am afraid that under the circumstances we cannot depart from the composition of the Board as it was in the past. The greatest danger we can run is that if we venture to leave it in the hands of those people, there will be wrangling from January till December, because they will try to get people in their particular political clique in order to control the Board. Up till now the Board has been functioning well, and the irrigators are very satisfied with the position and accept Clause 5.

*Mr. S. E. WARREN:

It is not my information that they are satisfied.

*Mr. J. H. CONRADIE:

The hon. member for Namaqualand (Lt.-Col. Booysen) is not present owing to illness, and he does not say so.

*The MINISTER OF LANDS:

The hon. member for Namaqualand is not an irrigator. He used to possess large tracts of land there. He used to be more a speculator than anything else. He sold most of the land.

*Mr. WOLFAARD:

He still has half of it. He only sold half.

*The MINISTER OF LANDS:

As regards the distribution of water, the hon. member for Swellendam is afraid that the rights of riparian owners will be affected, and that they will not receive their due share. No riparian owners’ right is being touched. As far as the distribution of water per morgen is concerned, I may tell you that the amount of water allotted at the Oliphants River is more than in any other part of the Union of South Africa, at any other settlement or irrigation work we have in the Union. Up to 48 inches per annum is allowed to those people, and that in a dry area. I think this reply also removes the objection in regard to Clause 5. The hon. member for Prieska (Mr. Geldenhuys) spoke of the right to cut off the water when irrigators are in arrear with their payments. That right we have, and it is being used today, but it is being used very sparingly, and only in cases where irrigators wantonly refuse to pay their taxes. Only in that case do we go to the extreme limit, and we always give them one or two years’ time, and in some cases we gave irrigators even five years in which to pay their arrears. But when an irrigator does not admit and fulfil his obligations, we ultimately proceed to cutting off his water. That right is applied with the utmost care. The hon. member over there now says that we can wait until the man wants to transfer his bond. You cannot do it. First of all, it may happen that an irrigator does not get his deed of transfer for ten years. And once he has his deed of transfer and we would have to wait until such time as he sells again or transfers it to someone else, we may in some cases have to wait for years and years to get our taxes in. They receive terms up to 65 years. It therefore cannot be done. I hope that the Second Reading will now be agreed to.

Motion put and agreed to.

Bill read a second time.

The MINISTER OF LANDS:

I move—

That the House do now resolve itself into Committee on the Bill, and that Mr. Speaker leave the Chair.
Mr. J. H. CONRADIE:

I object.

House to go into Committee on the Bill on 25th February.

OFFICES OF PROFIT AMENDMENT BILL.

Fifth Order read: Second reading, Offices of Profit Amendment Bill.

†The MINISTER OF THE INTERIOR:

I move—

That the Bill be now read a second time.

It is a principle of any Constitution that it is the duty of a representative of the people to exercise an independent judgment, uninfluenced by any financial benefit in the bestowal of the Government of the day; that priniciple, which I venture to say has stood the test of time, is entrenched in our Constitution. In terms of Section 53 of the Act of Union it is provided—

No person shall be capable of being chosen or of sitting as a Senator or a Member of the House of Assembly who holds any office of profit under the Crown within the Union.

And then Section 55 reads that—

If any person who is by law incapable of sitting as a Senator or Member of the House of Assembly shall, while so disqualified, and knowing or having reasonable grounds for knowing that he is so disqualified, sit or vote as a member of the Senate or the House of Assembly, he shall be liable to a penalty of £100 for each day on which he shall so sit or vote, to be recovered on behalf of the Treasury of the Union by action in any superior court of the Union.

That was the position as laid down and defined in the Act of Union. Recently it was proposed to appoint a member of Parliament to the newly constituted National Nutrition Council and some doubt was expressed as to whether or not such an appointment might, in terms of the relative sections of the Act of Union, disqualify the member of Parliament in question, under the provision of Section 52 (d). The matter was therefore gone into—the question of membership of boards and councils, and other bodies, by members of Parliament, was gone into,—and it became clear from the advice which the Government received that membership of the National Nutrition Council would constitute an office of profit under the Crown. That enquiry, sir, led to enquiries in other directions, and it was discovered that, quite inadvertently, and in quite a bona fide fashion, certain members of Parliament and members of previous Parliaments, had become members of Boards or bodies which in terms of a true construction of the legal position, constituted offices of profit under the Crown. There are members of this present House, sir, who belong to various bodies and who are rendering there valuable services, and receiving very little for it, but who are technically contravening the law, and are liable, not merely to the loss of their seats, but also to a claim by the Government for large sums of arrear emoluments. As I say, this position has arisen bona fide. Possibly certain successive governments have led members of Parliament into a false sense of security through not pointing out to them the potential danger of accepting positions in regard to which their appointment would have to be regularised, and the actions of the members condoned and provision made for the future. A difficulty arose in regard to the basis upon which the Government should act. Should the Government exclude from the definition “office of profit under the Crown” all Councils, Boards and other similar bodies where the members receive no more than a stated sum by way of out-of-pocket expenses, and the number of sittings of the Board is limited? These and other questions were very carefully gone into, and eventually in the light of all the circumstances, it was proposed to adopt the method set forth in this Bill.

It might be of interest to hon. members of this House to know that as far back as 1910 the question of Parliamentary Commissions was enquired into. The point arose in those early days whether it would be competent for a member of Parliament to sit on a Commission and draw emoluments, and I think it has been very fairly clearly established, and has been accepted as a principle, that membership of a Commission does not constitute an office of profit under the Crown. The only South African case dealing with the question was that of Hedley versus Cilliers, decided by the Cape Supreme Court. That case, Mr. Speaker, does not attempt a definition of the term, but it is authority for two propositions which may be interesting. The first proposition is that an office may be an office of profit without any salary being attached to it, provided only the holder is entitled by virtue of such office, to some fee or other emolument, and the second proposition is that the temporary nature of the appointment of the holder of the office does not affect the fact that he is the holder of an office of profit. The conclusion arrived at was that it was perhaps impossible to give an exact definition of the term “office of profit”. But the gist of it is that it should be a situation or employment not merely “transient, occasional or accidental”. Now an ordinary Parliamentary Commission is not something permanent, it is occasional and transient, though I hope, sir, not merely accidental. A Divisional Council is a permanent body, Parliament is a permanent body, though not quite as permanent as some hon. members would wish. But as an institution it is a permanent body. A Commission is a temporary body, and as such, membership of a Commission does not constitute an office of profit under the Crown. Well, sir, in this Bill it has been sought to avoid any amendment of the Constitution which might lead to a circumvention of the existing salutary provisions against the holding of an office of profit, and the method adopted has been to set forth in Clause 1 certain specific bodies named therein, and to provide that membership of those bodies in the past or in the future shall not constitute an office of profit. These bodies are the Council of Public Health established by the Public Health Act of 1919; the South African Medical Council; the South African Pharmacy Board, established by Section 2 of the Medical, Dental and Pharmacy Act; the National Nutritional Council, established by the Public Health Amendment Act of 1940; and the Council known as the Social and Economic Planning Council. Section 1 provides that any person appointed before or after the commencement of this Act, who is a member of one of these bodies, and who receives any payment in respect of his services on such Council, Board or Committee, in excess of an allowance at the rate of £3 3s. for each day, together with reimbursement of any travelling expenses incurred by him, shall not be deemed to hold an office of profit. That deals with the position so far as the past is concerned, as well as the future. Clause 2 has been inserted in order to safeguard present or past members of Parliament who may at the present time, be members of a body other than those mentioned, and who may inadvertently have been contravening the law. It is worded in these terms. It provides that—

Any person who before the commencement of this Act held an office under the Crown by virtue of an appointment as a member of any Council, Committee, Board or similar body, and received no payment in respect of his services … in excess of an allowance and reimbursement referred to in sub-section (1), shall not be deemed to have held an office of profit under the Crown.

Therefore so far as the past is concerned, before any person can be affected, it must be shown that he held an office under the Crown, and that his emoluments were more than those stated in the section. That section then will regularise the position in regard to the past. It will condone any breach of the Act which may have been incurred unwittingly by members of Parliament in the past, but so far as the future is concerned, members of Parliament should now be on their guard. They must now be presumed in future to realise the inherent danger of accepting an office that might be possibly construed as an office of profit under the Crown, and they will know that unless they are members of the four specific bodies mentioned, they will have to examine the position very carefully before accepting membership of any such body. It may mean that certain members of this House may have to resign from certain bodies of which they are members at the present time. There is, for instance, an Advisory Council of Labour. I understand that an allowance of £1 1s. a day is paid to the members who attend, and membership of that Council in terms of the legal interpretation constitutes an office of profit, and renders the person in question open to being unseated and having to contribute to the Crown and the Treasury all the emoluments he may have received by way of Parliamentary salary since the acceptance of that office.

Mr. S. BEKKER:

What about members of School Boards and Divisional Councils?

†The MINISTER OF THE INTERIOR:

Hon. members will have to deal with each particular case in the light of the circumstances; they will have to satisfy themselves whether they are holding an office of profit. There must be an air of permancy about it, to be an office of profit under the Crown. There are certain bodies, such as the Food Supply Board, the Dried Fruit Council, the Wheat Control Board, the Wool Council, the Tobacco Council—I mention a few which are not bodies which receive their funds from State funds. I do not give an opinion this afternoon whether membership of those bodies constitutes an office of profit. Those bodies are certainly not excluded from the definition in Section 1, but it may well be that the fact that the moneys, the salaries or emoluments which are paid, come from levies and not from State funds, may place membership of such bodies outside the category of offices of profit. But hon. members will have to be on their guard and will have to apply the test in the light of all the circumstances.

Mr. H. C. DE WET:

Does that mean that members of Parliament will have to resign from Divisional Councils?

†The MINISTER OF THE INTERIOR:

No, I hardly think so. I did not know that there were any emoluments or salaries attaching to membership.

Dr. BREMER:

Ten shillings a day and travelling allowance.

†The MINISTER OF THE INTERIOR:

Well, the very question raised by the hon. member shows how difficult it is. I doubt whether it is an office of profit under the Crown. I, unfortunately, am not able to deal with this matter from the point of view of giving a legal opinion; I can only point out the dangers and difficulties, but I would say that the question of membership of a Divisional Council, so far as I know, has never arisen in this connection.

Mr. H. C. DE WET:

Why not make provision in the Act for it?

†The MINISTER OF THE INTERIOR:

That is a matter which I am prepared to consider, and on which I shall consult the law advisers; my prima facie view is that it is not necessary to do so, but I am not able to give a decisive answer. I hardly think that membership of a town council is an office of profit under the Crown; it may be an office of profit, but certainly not under the Crown. They are on the same footing as Divisional Councils. There is a very great distinction between membership of such bodies and holding an office of profit under the Crown. The whole idea underlying this is to prevent an abuse of patronage by the Government of the day, by favouring an individual member of Parliament and so securing his allegiance. That is the principle at stake. The Divisional Council does not fall within the scope or jurisdiction of a Ministry of the Crown sufficiently to make membership an office of profit. A town council is in a similar position. Membership is dependent on popular election.

An HON. MEMBER:

So is a Divisional Council.

†The MINISTER OF THE INTERIOR:

Membership does not depend upon the will or fancy of an individual Minister or the Government, and once that element of patronage is removed, I should say that these offices do not fall within the definition. I think I have said sufficient, and the interjections which have developed during this almost fireside chat, in regard to the existing legal position, show the difficulties against which the members of Parliament must be on their guard. I would welcome any suggestions which hon. members may wish to make, because quite obviously from the remarks that have been made, this matter raises a very difficult and complicated question. I move, sir.

†*Mr. C. R. SWART:

Nobody will object to a Bill being introduced in this House to prevent certain members who have been sitting in this House for many years, being fined for losing their seats because they are members of one or other of the bodies mentioned. Some doubt existed, and the law adviser of the Government did not think it would be necessary to grant exemptions, but that it would be better to introduce a Bill of this nature. But after the speech of the Minister I have the impression that the whole matter is still hanging in mid-air. We still do not know where we are. The Minister was not prepared for this subject. He had only prepared himself for these few things here, and when he was interrupted, it very soon became apparent that the entire matter is still quite uncertain. All that is being laid down in this Bill is that in the case of the four Boards mentioned, members of the House of Assembly cannot be unseated or fined when they are members of those Boards. By way of interjections, however, quite a number of other cases were mentioned and all those cases are still as undecided as in the past. That is a very disappointing state of affairs. There are many other cases which should have been covered by the Bill. I am now, for instance, thinking of the position of matters of the Executive Committees of Provincial Councils. We had that case when in 1915 Mr. Havenga was elected as a member of Parliament. He was a member of the Provincial Executive Committee, and he was unseated because the Court decided that he was holding an office of profit under the Crown. Although a member of the Provincial Council could stand for Parliament, a member of the Executive Committee could not do so. The Minister mentioned the case of a few Agricultural Boards. A few years ago we had the difficulty in connection with Justices of the Peace, and special legislation had to be introduced in order to relieve Justices of the Peace from being considered holdingoffices of profit under the Crown. We had, so to say, to pass legislation for the exemption of members of Parliament. And today we heard here that there are still strings of cases the Minister cannot give an opinion on. Of course, this House does not expect him to give a legal opinion in this House. But the Minister’s speech has shown that, even if this Bill were to go through, the danger would still exist of a whole series of Court cases having to be fought, because this Bill does not clearly cover those cases. When a member of Parliament happens to be appointed to a Divisional Council or a School Board or to many other bodies, for which he receives a small allowance, the danger always threatens that a petition may be filed with the Court in order to deprive him of his seat, and then we shall again have to pass an exemption measure here. That is an entirely unsatisfactory position. Members of Parliament will be in the position that they have not the faintest idea on which kind of organisations and bodies they, can accept appointments. I therefore think that it would be in the interest of hon. members of this House if the whole subject were referred to a Select Committee before the second reading, or if the Minister would refer it to the law advisers. It is quite obvious that this matter has not been thoroughly thrashed out. The Bill is incomplete, for it only makes provision for four cases, whilst there are scores of cases, about which there is no certainty whatever. I think the Minister should withdraw the Bill and refer it back to the law advisers, or if that cannot be done, have it referred to a Select Committee. My personal opinion is that that would be the best course.

*The MINISTER OF THE INTERIOR:

They have worked on it for a year.

†*Mr. C. R. SWART:

And the Minister now enumerates a whole series of cases which may be considered as offices of profit under the Crown, and he is not able to say what the position of members is going to be if they occupy such positions.

*The MINISTER OF THE INTERIOR:

The Bill lays down that in these four cases the positions will not be considered as offices of profit; the other cases fall under the existing legislation.

†*Mr. C. R. SWART:

This is our clearest proof of the obscurity of the whole position. If any doubt should exist in regard to Divisional Councils. School Boards, or the Advisory Labour Council or other bodies concerned with agriculture, then we ought to bring those appointments within the scope of this Bill in order to clearly establish whether they are offices of profit or not. If it is the Government’s intention that such positions should be considered offices of profit under the Crown, it should distinctly say yes or no. My personal opinion is that the Minister ought to withdraw the Bill. We are willing to be helpful, but there is little use in placing a legislative measure such as this on the State Book and leaving scores of difficulties unsolved. Will the Minister consider it. Perhaps we can agree to the Second Reading provided the Minister thereafter again consults his law advisers so that all those cases may be dealt with as fully as possible.

*The MINISTER OF THE INTERIOR:

I am prepared to have the Bill referred to a Select Committee after the Second Reading.

†*Mr. C. R. SWART:

But will we be allowed to include the other bodies?

*The MINISTER OF FINANCE:

Why not?

†*Mr. C. R. SWART:

If that is the case I have no objection. But once we have accepted the principle—I do not want to anticipate Mr. Speaker’s ruling—it may perhaps be held that since four cases are mentioned here which are specifically excluded from being regarded as offices of profit, we shall not be allowed to add the names of other bodies, because that will be held to be a violation of the principle already accepted. That danger exists. If that danger does not exist, the best solution will be to agree to the Second Reading and thereafter refer the Bill to a Select Committee. We may, however, find ourselves in the position that such amendments will be ruled as being outside the scope of the Bill as read a second time and then we would be stuck. If the Minister would undertake in that case to agree to an instruction or to withdraw the whole Bill, it would be all right. But we cannot let the Bill go through as it is whilst all the other cases are still hanging in midair. That is the reason why I want to appeal to the Minister to make sure that this problem will now be solved once and for all, so that the members may know definitely which positions they may accept and which not. That will put a stop to the Exemption Bills which have continually to be introduced in this House.

*Dr. BREMER:

There is much to be said for us obtaining clarity in this matter at last. But there is also something to be said for the cases the Minister has enumerated in this Bill, because that concerns persons already occupying those positions in regard to which the Minister is doubtful and which he does not think are offices of profit, and about which the law advisers have been in doubt for years; there is something to be said for obtaining an immediate decision in regard to those cases. There are many other cases which have not been included. That is quite true but those are not cases where persons have been appointed by the Government of the day.

*Mr. C. R. SWART:

But what about the Advisory Labour Council?

*Dr. BREMER:

We are principally concerned with cases where persons have been appointed by the present Government or previous Governments and where we are not sure whether they occupy offices of profit or not. There must have been reasons why the Government asked those particular persons to accept those appointments. I do not say that there are no other persons which might have filled those positions as efficiently. But seeing that the Minister made the choice, we must admit that provision should be made for the persons concerned who are also members of this House, both in regard to the past and in regard to the future. I can visualise that when we are going to open the door for all kinds of possible appointments which have nothing to do with the Government of the day, it will grow into a very comprehensive problem. It may be possible to deal with the matter by means of a Select Committee or even in Committee of the Whole House. I hope, however, that this Bill will in no case be withdrawn.

*The MINISTER OF THE INTERIOR:

No, we shall not withdraw it.

*Dr. BREMER:

I should like to have clarity on all aspects of the matter, especially in regard to Divisional Councils, School Boards and membership of the Executive Committees of the Provinces. There are also some other Boards. I was surprised about the Minister’s statement in regard to the Advisory Labour Council. I also cannot see why persons serving on other Boards which do not sit for months, but perhaps for a few days in the year only, cannot be included in this Bill. If this Bill goes through as it stands, I shall apparently have to resign as a member of the Leprosy Board. That is a Board which sits for one or two days a year only.

*Mr. C. R. SWART:

Why should such a Board not be mentioned too?

*Dr. BREMER:

In order to expedite matters it will perhaps be possible to refer the Bill to a Select Committee after the Second Reading. The people who would want to give evidence are mostly present here. But I do hope that the Minister will not withdraw the Bill altogether.

†*Mr. R. A. T. VAN DER MERWE:

I should also like to add a few words to the debate. When I became a member of this House, I had to resign from not less than seven bodies in my town. One instance I want to mention is the Licensing Board, on which I served for years and years, and on which I think I maintained the high ideals of Afrikanerdom. But sometimes we held special meetings for special purposes, once or twice a year, and then I received £1. I had to resign then, for this was an office of profit under the Crown. This is an anomaly. The hon. member for Graaff-Reinet (Dr. Bremer) referred to the Boards he is serving on, and on which he does work in the interest of the public health. But as soon as he receives a small remuneration, he is not allowed to do that work. There is always the possibility of creating difficulties in connection with the complicated legislation we have in regard to this matter. A man may get a few pounds a year if he does work in the interest of the people, and that is not allowed. But, on the other hand, we have the fact that some of our members here are drawing up to £2,000 per year in connection with the war, and that is allowed. That is allowed, but when some of our members render honourable services, they may not do so. We welcome this Bill, but there are still other anomalies of a similar nature which should be removed. For that reason I support the idea of the hon. member for Winburg (Mr. C. R. Swart) that the Minister ought to consider reviewing the whole position, so that when one of us wants to do something in the interest of the people, it will be possible for him to do so. The Social and Economic Planning Council is mentioned here, but why not the Licensing Boards. That is also a social and economic matter, and there are other similar services. I served, for instance, for 18 years on the Hospital Board, of which I was the Chairman. But as on certain occasions small allowances were paid for paying one’s expenses, I could not remain a member. Surely it is only fair, when a person sacrifices his time and the income he might have earned in that time, that he should receive some compensation for the outlay which he had to pay out of his own pocket. But we are not allowed to do so. Even if one receives only 10s. compensation, it is already an office of profit under the Crown. I therefore hope that the Minister will go into the matter also in connection with other services where there may be payment of small allowances and fees he will make it possible for members of this Board to give of their services.

*Mr. GELDENHUYS:

I should like to ask the Minister to agree to the adjournment of the debate. This matter is of great importance, not only to members of Parliament, but also to the general public. We should like to give the Minister an opportunity to go into the whole matter and to make himself better acquainted with all aspects of it. I therefore want to move the adjournment of the debate.

The MINISTER OF THE INTERIOR:

I want to move it, and then the debate may be adjourned.

Mr. GELDENHUYS:

Why cannot I move it? I should like to continue with the debate on this Bill. I therefore move—

That the debate be now adjourned.
Dr. VAN NIEROP:

I second.

Agreed to.

Debate adjourned; to be resumed on 25th February.

On the motion of the Minister of Finance, the House adjourned at 6.37 p.m.