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5 per cent., but probably much higher. He had figures also to show that the Bill would alter the assessment of London by something like £62,000. He had put the position as shortly as he could, but he hoped he had also put it clearly before the House. He had endeavoured to show that the system of rating under the old companies was on the whole just. There were anomalies, no doubt, but on the whole the system was fair. A uniform rate would not work well. He would point out that the rate was highest where the water had to be pumped the highest, and that was the case at Lambeth, which had the highest rate, because, standing as it did on high hills, the water had to be pumped higher to supply that district than it had to supply any other. He had endeavoured to show that the percentage was right, and that the Water Board had gone far beyond the necessity of their obligation under the Act or 1902. He begged to second the rejection of the Bill.

Amendment proposed

"To leave out the word 'now,' and at the end of the Question to add the words 'upon this day six months.'"-(Sir F. Dixon-Hartland.)

Question proposed, "That the word 'now' stand part of the Question."

*MR. BARNARD (Kidderminster) said the seconder of the Amendment had expressed his strong approval of the position held by the old companies, and had stated the opinion that the Board should occupy the place of the eight companies and two urban councils which they succeeded. He did not point out, however, that there was a section in the Act of 1902 which imposed on the Water Board the distinct obligation to bring in a Bill to insure a uniform scale of charge, and it was to fulfil that obligation that the Bill before the House had been introduced. It was perfectly well known that there were ten different sets of charges in the great metropolitan area, and the Water Board took the opinion of counsel, and were advised that the proper course was to introduce a Bill on the lines of that now before the House. The hon. Members who moved and seconded the Amendment seemed to imagine that the Water Board was necessarily going to charge a maximum Sir F. Banbury.

of 5 per cent., but all the Water Board had to do was to produce to the House a scheme which would lead to a scale of fairness and justice between the 7,000,000 people living in the area of the Water Board. They were not there in the same way as the promoters of an ordinary private Bill. The ratepayers, who were also the consumers, were represented on the Water Board, the membership of which was sixty-six, of whom fourty-four came from London proper. These members were therefore well able to look into the whole matter in the committees of the Water Board when the Bill was put forward. They came from various parts of London, and represented a variety of interests, and if there had been any particular injustice they would have been certain to argue it in order that it might receive consideration. It would not perhaps be out of place if he pointed out that the Water Board was responsible for providing water for 7,000,000 people; that it had to find 250,000,000 gallons of water a day, and that for this undertaking they had been required to pay £45,000,000. The hon. Baronet had. said they ought to be saving £70,000 a year, but it had to be borne in mind that a public body could not always do what was done by a private individual. They had to pay higher wages and they were glad to do it. Another thing the

hon. Baronet had not alluded to was that although they issued their stock at 3 per cent. that stock had to be issued just after a war, for which they were not responsible, and the additional cost to them in consequence was about £3,000,000. Then there was the price they had to pay owing to compulsory purchase, which the County Council would have avoided if they could. The real point about this Bill was that they first of all had to contemplate the public health question, and to see before they came to the business arrangments that they safeguarded the sanitation and matters of that description. The mover and seconder with a good deal of skill had avoided the issue he desired to bring before the House. The Water Board had come to the conclusion that all the extra charges for water closets and baths and other things must be abolished in order that there should not be any excuse for stinting the poorer houses. The Board had not increased the water rates in London since they had been in office, and yet they had been able

He

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to pay their way in the first two years consideration, but they did not attack the they had been at work. They could principle of the Bill. As to the borough stand as the only municipal undertaking councils, as far as he knew, there would of such magnitude in the world that had be no one there that night who would been able to pay their way without say a word on their behalf against the charging their customers anything extra. proposal. Those boroughs adversely He ventured to think that their manage- affected would have opportunity to put ment was a credential that they were trust- forward their objections in the committee worthy and had some knowledge of their room. What did the City do? business. They had 1,100,000 customers; found there were objections in the names they could not lower the price to every- of the Member for Rochester and the body, and had therefore to consider the Member for Sussex; and he found in method they should adopt. The Bill bene- The Times newspaper a statement which fited or did not hurt 800,000 people and apparently represented the combined slightly injured 200,000. He did not know wisdom of the hon. Baronet and the how it was possible to hold the scale without right hon. Baronet. What did they say injuring some and necessarily benefiting That in Liverpool, under certain conothers. He found that the right hon. ditions, there was a charge by meter, but Baronet was quite wrong. They had 124 The Times, or its informant, avoided different local authorities inside the area of stating that in Liverpool they charged a "Water London," and this scheme bene- sixpenny rate on property all over the area fited eighty-five of the different governing to make good their water revenue. If authorities that he was referring to It they allowed him, on behalf of his Board, left thirty-nine either neutral or only to charge a public rate over the City of slightly affected. He did not think it could London, very likely he would be putting be considered such a dreadful proposition forward a different tale about the supply when they could benefit 800,000 and of water. What did these gentlemen only slightly injure 200,000. He came to fear? They had not increased the rate the 5 per cent. point. If they maintained in the last three or four years; and the all the extra charges that they proposed to House had not been told that the Board get rid of, what was the position? The old allowed 30 per cent. off every assessment companies could charge from 3 to 7 per in the city if it was over £300 a year. cent.; if they put extras on they That was a fact which he would have could charge roughly from 4 to 11 liked the hon. Baronet the Member for per cent. In this Bill they proposed the City of Londou to mention. to charge no one more than 5 per cent., and it did not follow in the slightest degree that they would have to exercise that power to the full. They were not working to make dividends; they were simply working on the principle that they required £3,000,000 a year to carry on the water arrangements of London. That money must be collected in some form or other, and he believed that the scheme he was now supporting did it in a just way. The whole tendency of the passing of the Water Works Clauses Act had taken this form. Parliament had not given any new powers to any statutory company without safeguarding the poorer portion of the people inside the area over which the powers were given. They were asking for less powers than most provincial towns possessed, and they were asking power to charge a less rate than was charged in provincial towns. The London County Council had very properly lodged objections based upon arguments which deserved the fullest

SIR F. BANBURY: Are you going to do it in future?

*MR. BARNARD said they had not put anything in the Bill which showed a desire to take away any concessions which they were giving; further than that, the scheme was calculated upon what they were now charging in the City, and he had every reason to suppose that in future they would continue to do the same. The Member for Middlesex had said that a great many people were thinking of sinking wells in the City. Let them do so if they had that privilege, but why should they come to that House and object to the Board's continuing a custom for which they had been called upon to pay very heavily in the past. It must be remembered that they had had to pay the water companies a huge sum of money, based upon the income they were then

earning, and when they had paid that money they were confronted by those who said that they should not have the income for which they had paid. Now he came to the very important question of the fire brigade. The hon. Baronet had told them that the City was described as the fire danger zone of London, and the Water Board were obliged to provide water, without any charge, to guard the City in the event of fire. The mains had to be kept fully charged at very heavy expense. If the Board were to lose their income from the City, where were they to get it from? In 1884 the City promoted a Bill in which they deliberately asked that they should be allowed to take water by meter. That Bill was defeated, and in a memorable speech Lord Randolph Churchill said they were seeking to raid the water companies, and that if they tried these socialistic ideas they would be making a rope for their own neck. The Bill was thrown out. The City of London and its Members were again divided that night. The present junior Member for the City was the Leader of the Opposition on the occasion to which he referred and voted in a direction opposed to that in which the senior Member for the City had just spoken. He came to the last point, that relating to the trade supply, which had been referred to by the hon. Member for Middlesex as a very dreadful thing. The Water Board simply regarded themselves as trustees, and that they were not entitled to give up any of the rights which apparently they possessed. Neither the mover nor the seconder of the Amendment had given a clear description of the position as to the trade supply to-day. The Southwark and Vauxhall Company as late as 1884 had an Act of Parliament, in which they put distinctly that they were not to give a trade supply unless the domestic supply had been first satisfied. In other words, they simply asked that if there should be a shortage of water, human beings should have the first drink. That was the principle he found in the legislation affecting water throughout the country. In the present Bill they had copied the model clauses, and if the Committee had anything to say as to that the reply was that the Board had simply followed the ordinary custom in the proposition they were putting forward. Clause 23 of the model Bill of 1906 was absolutely the one, Mr. Barnard.

together with another, which they had adopted in this Bill, and in doing so he believed they were conforming to the ordinary custom and rules. Four of the companies were under no obligation to give a trade supply at all. The right hon. Baronet talked about injuring trade, but he could not have acquainted himself fully with the Acts of Parliament, which in four cases showed that they were not under any obligation to provide a trade supply and in three other cases they were only obliged to do it under certain restrictions. All they did by this Bill was to bring the matter to a general level. For those reasons he hoped the House would allow the Bill to be read a second time.

*THE PRESIDENT OF THE LOCAL GOVERNMENT BOARD (Mr. JOHN BURNS, Battersea) said the hon. Member for the City of London, with some force and considerable ingenuity, had advanced certain claims for the constituency which he represented. It passed through his mind while he was speaking how much more ably and ingeniously the hon. Baronet would have been able to advance arguments for the other constituency which he used to represent in the House. The hon. Member for Uxbridge to some extent had proved a case for this Bill's going to a Committee. He had pointed out that certain trade interests ought to be delicately handled, and he had stated that if a water supply was denied to them at too short a notice they might sustain in many cases irremediable damage. Surely differential treatment of that kind should not be discussed on the Second Reading of a Bill. On behalf of the Local Government Board he had risen to say that the Water Board came to the House of Commons in discharge of a statutory obligation which was placed upon them by Parliament three or four years ago. A clause in the Water Act introduced by the last Government specifically laid it upon the Water Board that they should not until otherwise authorised by Parliament reduce the water rate below what it was in June, 1902, unless they were satisfied that such a reduction would not cause a deficiency in the Water Board funds; but at the same time the Water Board were compelled to promote a Bill to secure a uniform scale of charges. Parliament would be stultifying itself if

it did not give the Water Board the proper opportunity to prove that the scale proposed was the best method of dealing with the water rates of the metropolis. Parliament clearly intended that there should be a uniform scale of charges, and therefore this Bill ought to be read a second time and the technical matters which had been referred to should be left to the lawyers who would represent the City when the measure came before the Committee. If the City of London had a good case the House might rely upon the Committee to differentiate between general statements made in this House and that kind of information obtained by cross-questioning which produced the real facts, and which was necessary in this particular type of case. Therefore he asked the House to pass the Second Reading and allow the Bill to go upstairs. If the hon. Member for Uxbridge could prove to the Committee that market gardeners would be liable to be treated in the way he had referred to he was convinced that the hon. Member's constituency would get that protection which he desired from a Committee of the House of Commons. In due course the Local Government Board would present a Report to the Committee in the usual way. In conclusion he wished to say that the Water Board, under great difficulties, had done their best to discharge the huge task laid upon them by Parliament, and the proper tribunal to decide the points in dispute was a Committee of this House.

MR. STUART WORTLEY (Sheffield, Hallam) wished to give one or two reasons why they could not abandon their position in regard to this Bill. There were certain things which required no evidence to establish them and in regard to which no cross-examination was necessary. One of those things was a case where a local authority or a company came to Parliament with a private Bill and, under cover of discharging a Parliamentary obligation, indulged in the luxury of proposing highly adventurous legislative experiments altogether different from their legal obligations. The Water Board was under an obligation to effect the equalisation of charges over their area, but for that purpose it was not necessary to say that the owners should pay rates instead of the occupiers. In many cases

the owners were prevented by statute from making any change in the rent which should accompany an obligation to pay the water rate. It was not equalisation to say that a railway station should pay water rates upon its full rateable value when the amount of water consumed was totally out of proportion to the rateable value; it was not producing equality to say that a local authority in respect of water required for sewer flushing and road watering should pay a reasonable rate, whilst all other consumers might have demanded from them a rent which would not be reasonable. The same applied to the objectionable power to refuse a water supply for trade purposes altogether. All those matters were foreign to equalisation, and it was monstrous that any person should be compelled to go to the expense of appearing before the Committee upstairs fighting this great authority. He did not see why traders should be put to all that expense because this local authority chose to masquerade behind a pretended Parliamentary obligation for the purpose of conducting experiments which on the face of them were totally unjust and unreasonable.

*MR. ERNEST H. LAMB (Rochester) said the only argument which had been made in regard to this measure was that it had been brought in because of a statutory obligation, but surely that did not compel the Metropolitan Water Board to bring in a Bill which was so unjust as this measure. He was rather surprised at the language used by the hon. Member for Kidderminster. He might say that he was not ashamed of being a Member for the City of London Corporation. He was glad that this was not a Party question. The hon. Member for Kidderminster asked why they opposed this measure when large companies and trading concerns had the option of sinking wells. If they did that and secured their own water supply they would compel the Water Board to fall back upon Clause 15 of the Act of 1902 which gave them power to levy a general rate for any deficiency and that would fall heavily upon the very people whom the hon. Member for Kidderminster was so anxious to protect. Again the hon. Member opposite had laid stress upon the fact that the 5 per cent. charge provided for in the Bill was a

maximum charge, and would not neces- There was no security that they would not sarily be enforced by the Water Board, charge what Parliament had authorised but, unfortunately, for his argument the them to charge. Property of that kind, financial basis of the Bill was that the therefore, was entitled to some proBoard under it should obtain approxi-tection, some such protection as was mately their present income. As a given in the Acts of many of the large matter of fact, the proposals of the Bill provincial towns. He could mention a were estimated to produce over £20,000 dozen cases throughout the country less than the Board's present income, and where Water Acts provided such protherefore they would be bound to levy tection. The Metropolitan Water Board the maximum 5 per cent. which had went so far as to say that it was imbeen referred to. He could not conceive possible in practice to frame a scale anything more unjust than some of the which would be applicable to all cases. provisions contained in the Bill, because He knew the difficulties, but he submitted it meant that one part of London was to that they were not impracticable. He be penalised at the expense of the other thought, therefore, the hon. Gentlemen part. He thought a case had been made who had spoken had been well advised out for the rejection of the Bill. What in putting their opinions before the would be the consequences if the advice House. The Bill affected not only the of the right hon. Gentleman the Presi- interests of London, but also of districts dent of the Local Government Board were taken and the Bill sent up to a Committee? It should not be forgotten that the London County Council, the City of London Corporation and other public authorities had petitioned against the Bill. Why should they allow thousands of pounds of public money to be spent in opposing a Bill which they honestly believed to be unjust as a whole? He hoped they would have the courage of their convictions, throw out the Bill on the Second Reading, and thus save the expense of opposing the same in Committee.

*MR. PICKERSGILL (Bethnal Green, S.W.) said he held an impartial position in regard to this measure. To reduce all the water rates in London to the level of the lowest would involve a loss of £250,000 a year. Hon. Gentlemen opposite professed to be anxious that the rates should not be raised, but it was owing to their own action in recent years in opposing various Bills brought forward from time to time by the London County Council that the ratepayers had had to pay many millions more than they would have had to pay if the Bills had been passed. It was hardly doing justice to call this a City case, because the grievance was by no means confined to the City. The occupiers of large business premises, such as warehouses, were undoubtedly alarmed by the proposals of the Water Board, for while they were paying at the rate of 2 per cent. the Board took power to charge at the rate of 5 per cent. Mr. Ernest H. Lamb.

outside of London, and the proposal to make rateable value the basis and charge throughout the water area was unfavourable to London. Owing to the peculiar constitution of the Board the interests of London were not adequately protected. The London County Council had only fourteen representatives out of sixty-six. While joining in many of the objections to the Bill, he thought that the Board was entitled to ask that the House should send the measure to a Select Committee. The Board was only carrying out a statutory obligation, and all interests would, therefore, have the opportunity to fight out the details of the case before the Committee.

*MR. NIELD (Middlesex, Ealing) said they all recognised the moderate tone of the last two speeches. He, however, differed from the last speaker in his statement that the ratepayers had had to pay more for the acquisition of the Water Companies by reason of Members on the present Opposition side of the House having opposed County Council Bills! The opposition to those Bills was due to the inherent defects in the proposals of the county council-schemes which were wild and unworkable— besides involving the giving of powers. to the county councils which it was not desirable they should possess. The Radical Party were the cause of London ratepayers having to pay some £11,000,000 or £12,000,000 more for the undertakings of the Water Companies by reason of their opposition to the proposals of the late Lord Beaconsfield, who had so dealt

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