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INDEMNITY ORDINANCE,
The ATTORNEY-GENERAL moved the first rea ling of a Bill intituled an Ordinance to restrict the taking of legal proceed ings in respect of certain acts and matters done during the war and to provide in certain cases remedies in substitution.
now
THE HONGKONG WEEKLY PRESS &
184
[September 3rd, 1921.
The Objects and Reasons state:-- 1.-The Bill is based on the Indemnity Act, 1920, 10 and 11 Geo. 5, chapter 48.
8. The definition of the term risk " in clause 2 is taken from clause
war
19 of Admiralty Charter Party T. 99, as being the risk assumed at the time of requisitioning when certain ships were first placed under control in 1917 and 1918.
The other definitions in clause 2 are taken from the Aet.
3. Clause 3 of the Bill is practically a copy of clause 1 of the Act, except that words have been inserted in order to make it quite clear that the clause will include claims for the recovery of money held by the Government of the Colony in consequence of such acts as are referred to in the main part of the clause. These words are inserted by way of extra caution as it seems obvious that the section in the Imperial Act is in- tended to cover such claims and probably does cover them.
4. Speaking generally, clause 3 gives protection to all persons in the public service, in respect of any act done during the war and before the passing of the Ordinance, if such acts were done (a) in execution of a public duty, and (b) in good faith. Sub-clause (3) provides that a certificate by the Colonial Secre- tary that any act was done in execution of a duty shall be sufficient evidence of that fact, and that any act so done shall be deemed to have been done in good faith unless the contrary is proved.
should evade their share of the common burden which. British shipowners throughout the world have either accept- ed voluntarily or been required by law to accept? It is a difficult matter to speak of questions of sacrifice, especially when one speaks from a safe position, but I think it is not unfair to remind the shipowners concerned that many men had their businesses ruined, their He said: This, sir, is an indemnity Bill health shattered or their lives forfeited s ch as is always introduced after any in the war, and I do not think the a f any importance. I say that be-Government of the Colony are acting cause it has been suggested that this is unfairly in asking these shipowners to not really an indemnity Bill, at all, and shoulder their share of the common bur- den. The opponents of this Bill may that the indemnity clauses are really think that it is an unfair one, but I intended to cover another object. That, I shall deal with in a few minutes. I do would remind them that if it is not not agree with that view. When the war passed another act of unfairness will be was going on, and we were fighting for perpetrated. I would like to quote from a our national existence, many things had speech of Sir Gordon Hewart in the to be done for which, perhaps, no strict House of Commons in the debate on the legal justification could be found, but the Indemnity Bill passed into law last year.
The Act on which this Bill is founded. occasion was urgent and conditions were new. Both in police, and censorship, and The hon. member after reading the matters connected with the liquidation of extract went on to say:- German firms, things had to be done, on I would also like to remind the ship- the spur of the moment, because there was owners concerned that the Government not time to get
definite legislative in carrying out this shipping scheme authority and no time to explore accepted the war risk on these ships. thoroughly the law on the subject. I That risk, as it happened, was not serious, think it would not be fair that particular but the possibility of a raider finding its officers of the Government should way into these waters was not an im- stand to be shot at by people who have possible one. There was also the danger had all this time to rake over the law of explosions amongst cargo, explosions and pick holes in what was done in engineered by enemy agents in the East emergency. Though this is an indemnity The Government took the risk of any If Bill, it would be foolish to deny that one damage due to any operations of war. object of it is to bar certain shipping a raider had appeared in these waters claims in respect of ships requisitioned and had sunk even half these ships the 5.-The clause in question, clause 3, here during the war. The intention of resulting loss would, at a time of very bars all legal proceedings in respect of the Bill is that compensation for the use high value of shipping, would have been any such acts, including legal proceed- of those ships shall be restricted to the most crippling. It was a risk contem-ings for the recovery of money held by rates which were given by the Board of plated with considerable anxiety at the the Government in consequence of any Arbitrators in England, and in the case time by the Government, and if the loss such act. Certain legal proceedings, are of ships requisitioned there of course any had occurred it would have been a most excepted from this bar, and amongst the additional amount which may have been severe one for the Colony from which it promised here by the local government on would not have recovered for a long time. excepted cases is the institution of pro- account of the special conditions of the Are we, then, to get nothing in return ceedings in respect of breach of con- local shipping. Any shipowner whose for that risk which the Colony as a whole tract, provided that such proceedings are ship was requisitioned, or controlled, and took I admit that does not cover the commenced within one year from the ter- who is not satisfied with the amount will whole ground, but it does cover at least mination of the war or from the date when the cause of action arose, which- have to go before the Board, which will part of the ground. It may not be gen-
ever may be the latter date. This consist of one judge, one member appoint-erally known that we did at one time ed by you, sir, and one appointed by the offer the Imperial Government the whole limitation of time is imposed in order claimant, and that Board will be limited of the collections from this requisition that claims may not be held back unduly in their grant of compensation by the scheme if they would also accept the risk, but may be presented while the evidence on behalf of the Government is more same principles that guided the corres- and the Imperial Government refused to ponding board in England. In other do so. We, therefore, had to carry it likely to be available. Temporary or- words, they will only be allowed to give through on our own. I do not propose ganisations set up for the purposes of a Blue Book rates with certain additions to go into the details of the Bill. It is war are dissolved when the war comes which it is not necessary to specify here. based on the English Act and the details to an end, or even before that event, The first observation I should like to make are explained, I think, sufficiently, in and the longer the time which elapses is that this is, at least, no surprise to the Objects and Reasons. The special the more difficult it is to obtain evidence shipowners because the policy was an- words inserted in clauses 3 and 4 to cover
on matters dealt with by such temporary nounced at the very start, and shipowners the case of claims in respect of requisi- organisations. must have known it was the fixed policy tioning of ships have been inserted by
6. Clause 4 makes an exception to the of the Government. I do not overlook the way of extra caution. I say that because fact that the shipowners patriotically re- I think the English Act did cover them, general bar on legal proceedings imposed frained from making any claim during and it was intended to cover them. The by clause 3. It gives a definite legal the war.
I do not altogether blame them debate in the House of Commons shows right to payment in respect of the re- for seeking to enforce whatever legal that; it lasted six hours and turned quisition and control of shipping by or on behalf of the Government of the rights they have now, but, at least, they mainly on the shipping question involved cannot say they were misled, because the It was pointed out that if the Bill was Colony, and a right to compensation for policy was announced at the time and they not passed additional burden of damage directly due to war risk during must have known that the Government £328,000,000 would be thrust on the tax- the period of requisition or control. The intended to carry it out by all means in payers of the country. I mention that payment in respect of requisitioning and their power. I would also point out that to show that it was intended to apply to control is to be in accordance with the shipowners as a body have not done at shipping claims. By way of extra cau- Blue Book rates, together with any all badly in the war. Freights were high tion words have been inserted in this Bill additional payment which may have been and those ships requisitioned here were
to make that perfectly clear. We made expressly promised in writing, or credit- not requisitioned at all until very long from this Colony, during the war certained to the owner, by the Government. after the war had started-one at the end contributions to the Imperial Government of 1917 and the rest at the beginning of for the carrying on of the war. We sent 1918. They had all that time before they home out of ordinary revenue over five were controlled by the Government at all. millions; and out of special rates imposed The position is this, that all over the for war purposes over two millions. We world, certainly in the United Kingdom, also raised a loan of three million dollars the great majority of shipowners accepted and sent that to the Imperial Government. the terms which the Government offered: The cash payments have gone; the loan in other words--they accepted the Blue remains, and what it is proposed to do Book rates. A certain minority in Eng-with the money collected by the Govern- land reserved their rights; that minority ment under the requisitioning is to place have now been compelled to accept the it in a fund for the redemption of that rates which the great majority of the war loan. industry accepted voluntarily. Is it fair The COLONIAL SECRETARY seconded, and then, sir, that these few ships out here the Bill was read a first time.
an
This addition does not appear in the Imperial Act but is peculiar to the Bill. Compensation for damage due to war risk is limited, as in the Imperial Act, by the provision that, in assessing such damage, no account is to be taken of any increase of market values of tonnage due to the war.
7:-The tribunals for assessing payment or compensation under the Imperial Act are (a) the Admiralty Board of Arbitra- tion, (b) the Defence of the Realm Losses Commission, and (c) any special tribunal prescribed by the Defence of the Realm
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