House of Commons
Monday, June 21, 1909
Private Business
Donington Water Bill [ Lords ],
Read the third time, and passed, with Amendments.
Rio Tinto Company Bill [ Lords ],
Read the third time, and passed, without Amendment.
Sligo and Bundoran Railway Bill ( King's Consent, on behalf of the Crown, to be signified ),
Watford Urban District Council Bill,
Read the third time, and passed.
Derwent Valley Water Board Bill.
As amended, considered; Amendments made; Bill to be read the third time.
Folkestone, Sandgate, and Hythe Tramways Bill,
As amended, considered; to be read the third time.
London County Council (Tramways and Improvements) Bill.
As amended, considered; Amendments made; Bill to be read the third time.
North East London Railway Bill ( By Order ),
As amended, considered; to be read the third time.
Provisional Order Bills
Private Legislation Procedure (Scotland) Act, 1899
Glasgow Hospital for Skin Diseases Order Confirmation Bill,
Merchants House of Glasgow (Buchanan and Ewing Bequests) Order Confirmation Bill,
Read the third time, and passed.
Oral Answers to Questions
Questions
Field Artillery Brigade
asked the Secretary of Mate for War how many men and horses were required to bring the Field Artillery Brigade which paraded at Aldershot on 11th June up to war strength; and from how many different units and from what commands these men and horses were drawn?
To complete this brigade to war establishment, which includes the ammunition column and second line transport, neither of which services forms part of a brigade during peace, nine officers and 479 other ranks and 694 horses were required, and all were taken from units in the Aldershot Command. Of these nine officers, 372 other ranks, and 314 horses came from two field artillery brigades, and 107 other ranks and 380 horses from the Royal Engineers, Cavalry, and Army Service Corps.
Can the right hon. Gentleman, in view of the fact that the horses are drawn from so many different units, say where the horses for the brigade are to come from on mobilisation?
We are building up a reserve of horses as fast as we can. We have 25,000 registered at present, which is an increase this year, and I daresay the hon. Member will have observed that we are taking a census. Devonshire alone shows 43,000 horses, of which probably 10,000 will be good for army purposes. If other counties turn out in the same way no doubt we will be able to mobilise very easily.
Will all the horses be fit for artillery?
Out of the 10,000, I should hope that a very considerable number will be fit.
Are they trained?
The hon. and gallant Member knows that reserve horses are not trained. In that respect we are just in the same position as Germany, France, and Austria.
In regard to the 10,000 horses in Devonshire, will the Government have an actual call upon them?
That has always been so. The machinery for that has been somewhat improved in the Army Act of this year.
Dorset Yeomanry (Saddles, Oats and Meat Supplies)
asked the Secretary for War why the Dorset Yeomanry were not supplied with the number of saddles they required at the commencement of their training?
There had been a recent increase in the strength of the unit, and also a demand was made for saddles with unusually large girths. In consequence, difficulties arose in meeting this immediate demand.
May I ask the right hon. Gentleman whether he has any reserve for the Yeomanry cavalry?
I should like notice of that question.
asked the Secretary for War whether the oats and meat supplied to the Dorset Yeomanry during their training came from abroad or were English products?
Oats and meat for the Yeomanry are obtained in the same way as for the Regular Army; no stipulation is made that either shall be English products, quality and prices alone governing the supply. The information required is therefore not available.
Would the right hon. Gentleman in future stipulate that these should be home products in view of the great difficulty which farmers in the South of England have in making both ends meet?
No, certainly not; I have no such intention.
Is the quality of foreign oats better than that of English oats?
I do not suppose it is better, but I have no reason to think it is worse. We have a standard.
Can you not get much better meat in Wales?
National Rifle Association
asked the Secretary for War what assistance, in money or in kind, is given by the War Office to the National Rifle Association; and upon which Vote and sub-head of the Army Estimates can this subsidy be discussed.
The National Rifle Association has received £50 annually for some years from Army Funds towards the prize list for their Bisley Meeting, which has been allotted to the prize called that of the Secretary of State for War. The Association also gets the benefit of the services of officers and non-commissioned officers for range duties, and of a reduced rate for a certain number of rifles, and a certain quantity of ammunition, also of the use of military camp equipment. There is accordingly no one Vote which meets the cost of the various aids given to the National Rifle Association, but the £50 is charged to Vote 4 F.
Can the right hon. Gentleman say approximately what is the total value of the assistance now given?
I could not say offhand. It is a very small thing.
asked the Secretary for War whether the War Office requires that any rules in connection with the practice of musketry shall be observed by the National Rifle Association as a condition of receiving the official subsidy granted at the public expense?
No rules have hitherto been imposed on the association as a condition of receiving the assistance specified in the reply to the previous question.
Is the matter under consideration by the War Office?
It is under consideration.
Territorial Aggregate (Bisley)
asked the Secretary for War whether members of the Territorial Forces can be excused their annual training in order to enable them to take part in the competition known as the Territorial Aggregate, held at Bisley under the auspices of the National Rifle Association; if so, how many men have been thus excused during the past 12 months; and whether the conditions of this competition are in harmony with the system of musketry approved by the War Office as affording practical training for purposes of war?
The grant of leave from annual camp is regulated by paragraph 307 of the Territorial Force Regulations. The numbers of men excused for the reason stated is not known at the War Office. The conditions of the Territorial aggregate competition are based on bull's eye shooting only, and cannot therefore be said to harmonise with the musketry system now approved by the Army Council.
Is it proposed to continue to let men off their military musketry training in order to take part in competitions of this kind, which do not harmonise with the practical training of the troops?
It is not expedient to do all these things all at once. I hope we shall get a more satisfactory condition of things in a very little time.
Army Musketry Test
asked the Secretary for War whether the musketry test for proficiency pay in the regular Army has been recently made far severer; and what saving he hopes to effect by the large consequential decrease in the number of private soldiers who will in future be eligible for proficiency pay?
The present musketry courses represent a higher standard of rifle shooting altogether than the courses of previous years, and the difficulty of qualifying for proficiency pay has correspondingly increased. It is not contemplated that the course will prove so difficult next year, when the men become accustomed to the new targets. Provision has already been made to prevent the severity of the standard from pressing unduly on the men financially the first time they fire the course without lowering the actual standard of shooting. There is no question of endeavouring to secure a saving of public money at the expense of the men.
Age Limit (Boys) Rules in Arsenals
asked the Secretary for War if he will lay upon the Table of the House the rule or minute by which lads are automatically dismissed on reaching the so-called age limit.
There is no rule or minute such as is inferred in the question. Under 21 years of age boys or lads are employed on rates below the minimum rate of wages allowed for men. On reaching 21 years of age they become men, and are entitled to the minimum rate of wages sanctioned for men. If there are no vacancies for men in the factories they cannot be taken on as such, and they cannot well be continued after 21 as boys on a less rate of wages than is approved for men of 21 and over.
If there is no formal minute on the subject, will the right hon. Gentleman give the conditions which govern this matter in reply to an unstarred question?
Certainly.
asked the Secretary for War if he is aware that during the last few weeks more lads have been discharged from the Woolwich Arsenal; if he will consider the case of the lad, E. Gomm, discharged on attaining the age-limit for lads, and who has lost an eye, possibly from injury received while working; and, if so, whether work could be found for him in the torpedo factory?
As long as there are no vacancies for men, lads must be discharged on reaching the age of 21. The case of E. Gomm has been considered. He did not lose an eye from injury received while working in the Ordnance factories. It may be found possible to give him temporary employment in the torpedo factory.
Warwickshire Imperial Yeomanry (Fodder Supply)
asked the Secretary for War whether the oats and hay supplied to the Warwickshire Imperial Yeomanry during their training on Salisbury Plain were of home or foreign growth; and what were the respective prices paid for the same?
The contract contains no stipulation as to place of origin, and it is consequently impossible to state definitely whether the forage was of home or foreign growth. It is the practice to treat prices of Army contracts as confidential.
May I ask if in order to encourage the farming class joining the Yeomanry the right hon. Gentleman would insist on home-grown products?
I am very anxious to encourage the farming class to join the Yeomanry, but to revert to a system of Protection would, I think, be rather a high price to pay for that.
Has the right hon. Gentleman any objection to making provisions that, quality and price being equal, home farmers will be given the preference?
We always do try to please people in that respect, quality and price being equal; but it is where quality and price are not equal there is the difficulty. In this case we did not go into the source of origin. We simply gave the standard of quality, leaving the contractors to supply.
Yeomanry (Meat Supply, Salisbury Plain)
asked the Secretary for War whether the meat supplied to the Warwickshire Yeomanry at Salisbury Plain and to the Lincolnshire Yeomanry during their training was English or foreign?
The meat supplied to these Yeomanry regiments during their training was of the same quality and description as that supplied to regular troops, and was obtained under contract, the specification of which includes stringent safeguards as to the quality of the meat, and provides that the beef supplied on four days a week must be fresh ( i.e., from cattle slaughtered in the United Kingdom), that imported frozen beef may be issued on two days and mutton (which may be either fresh or imported frozen) on one day a week. Quality and price alone govern the supply, and no stipulation is made that the cattle slaughtered in the United Kingdom should be English or foreign.
May I ask whether in view of the increased taxation of Ireland under the new Budget he will insist upon all beef being bought in Ireland for the Army?
May I ask if the wines and cigars consumed by the officers are British manufactured?
I am sure they are not.
Imperial Yeomanry (Rates of Pay)
asked the Secretary for War what are the present rates of pay for non-commissioned officers and troopers of the Imperial Yeomanry as compared with those previous to 1st April, 1909; and what are the rates respectively of the old corporals and the recruits who joined last year before 1st April?
The hon. Member presumably intends to refer to April, 1908. The rates are as follows:—
Is he aware it is possible that a lance-corporal at the present moment may be actually in receipt of smaller pay than a private who joined quite lately?
I do not think so, but perhaps the hon. Member would put a question on the subject.
May I show him the details?
Imperial College of Science and Technology (Officers' Training Corps)
asked the Secretary for War whether the Imperial College of Science and Technology has received any communication to the effect that the college would be allowed to have an officers' training corps distinct from that of the University of London, whether students of the Imperial College have not hitherto formed a part of the University of London contingent, and, if permission is to be granted for the formation of this distinct corps, will he explain why this departure has been made from the principle so far recognised that officers' training corps should only be attached to universities, and not to the separate schools of any university?
An application has been received on behalf of the Imperial College of Science and Technology to form an officers' training corps distinct from that of the University of London, and the application has been acceded to. Eighty students of the college have already joined The University contingent. There has been no departure from the principle on which the formation of contingents of the offiecrs' training corps is based. The Imperial College is at the present time a separately governed institution, and not a college of the University.
May I ask whether those eighty students will remain members of the University of London Corps; and whether similar permission would be given to one of the colleges of the University of Cambridge or the University of Oxford to form a corps separate from that of the University of Oxford or of Cambridge; and whether, owing to the fact stated by him that the Imperial College—
The hon. Member had better put that series of questions on the Paper.
May I ask whether the action contemplated in his reply will not run counter to the official regulations for the Officers' Training Corps, under which the University of London has undertaken to furnish a contingent from the students of its colleges
It does not run counter?
May I ask whether those eighty students will remain members of the University of London Corps or be a separate corps?
They will belong to the Imperial College of Science and Technology Corps, but they will probably train together, and I do not think there will be any confusion in practice.
New Cavalry Sword
asked the Secretary of State for War what progress had been made with the issue of the new cavalry sword?
No deliveries have yet been made by the manufacturers.
Can the right hon. Gentleman give the reason for this very long delay?
It is a new sword, and it was very important to get the right material.
Has it not taken four years?
The question what was the best pattern took a long while to decide. The matter was referred to a strong committee, and, as soon as the pattern was settled, orders were given.
Was not the pattern settled twelve months ago?
Royal Military College, Sandhurst (Cadetships)
asked the Secretary of State for War whether there was a shortage of candidates for cadetships at the Royal Military College, Sandhurst; whether there was to be any examination for entrance to it in June; and what tests beyond the medical examination would there be to ensure efficiency?
The number of qualified candidates who have applied for admission to the Royal Military College is less than the number of vacancies available on this occasion. It is not therefore necessary to hold a competitive examination this month for entrance to that institution. All candidates are required to produce a leaving or qualifying certificate, as defined in the regulations, to show that they have attained a fair standard of general education, and to be within the usual limits of age. It must be remembered that the number of vacancies available is abnormally large, owing to the increase in the establishment at the depôts.
Is not this qualifying examination intended merely as a minimum to sift candidates, and may not the absence of competition have a very serious result
As the hon. Member knows, the qualifying examination is a sifting examination for the purpose of ascertaining the increased standard of education desired—
A minimum?
Certainly. Obviously when you have got your minimum it is no use having an entrance examination into Sandhurst if there are more vacancies than candidates; it would be waste of time. The important thing is how the men come out at the end of the course.
In view of this most serious record, and the fact that there are more vacancies than have ever existed before, may I ask whether it is not to a certain extent due, as stated in the newspapers, to the continuance in the Army of the pernicious system of confidential reports; and whether it would not be better—
The hon. Member is now advancing an argument.
Perhaps the right hon. Gentleman will answer my first question.
It has nothing whatever to do with confidential reports. The main reason is that 220 officers are being appointed for the depôts, and consequently there is a larger demand than there has been before.
rose to put supplementary questions.
I must remind hon. Members that there are 88 questions on the Paper, and if every one was to give rise to three or four supplementaries we should not get through them.
Special Reserve (Shortage of Officers)
asked whether there was any shortage in the officers for the Special Reserve; and, if so, what number was deficient?
The present shortage of officers in the Special Reserve is 1,021.
First Garrison Regiment (Officer in Command)
asked the Secretary of State for War whether the officer in command of the 1st Garrison Regiment, which was disbanded after the South African War, was, by being placed on half-pay, treated differently to all the commanding officers of the other garrison regiments who were retained on full pay; whether he thus lost his brevet-colonelcy and all the advantages that pertain to that rank; and if, through no fault of his own, he was subjected to this treatment, would the right hon. Gentleman endeavour to rectify the matter.
The garrison battalions were broken up gradually. Three of the officers had completed four years in command by the time their battalions were broken up. The remaining three officers had necessarily to go on half-pay when their battalions were broken up, and it was impossible to retain them on full lieutenant-colonels' pay when their services were no longer required as such; accordingly the officer alluded to in the question was not the only one who had to go on half-pay before the completion of the tenure of his command. In view of the fact that his present appointment will enable him to secure the maximum pension of a lieutenant-colonel, it is not apparent that he has suffered any pecuniary disadvantages. This case was fully considered two years ago, and I am not prepared to reopen it.
Territorial Force (Establishment and Strength, 1st June, 1909)
asked what was the strength, by districts and arms, of the Territorial Force at the beginning of this month?
The figures asked for by my hon. Friend are too long to read out to the House; I will have them printed in the Votes and Proceedings. ( See Written Answers this date. ) I may say generally that, notwithstanding one-year men going out, there has been an increase since 1st May of 5,105 non-commissioned officers and men. The present total of the force stands at 9,313 officers and 259,463 non-commissioned officers and men, being a percentage of 83 of the establishment in the case of officers and 86 of that of non-commissioned officers and men respectively. I cannot give the exact number of the increase of officers since the last figures we gave, nearly two months ago, but it is somewhere between 300 and 400.
Munster Fusiliers (Enlistment Under Age)
asked the Secretary of state for War whether he could state the grounds on which the officer commanding the 16th Infantry Brigade in Ireland declined to release from the Army a boy named Cunningham, although the boy's father, Michael Cunningham, of Dungannon, county Tyrone, produced certificates showing that the boy was less than 18 at the time of his enlistment in the 2nd Battalion of the Munster Fusiliers, and paid £10 for his discharge; and whether this sum of money had been refunded?
Under Paragraph 390 (VI.) (b) of the King's Regulations the Brigade Commander can, at his discretion, either discharge or retain for service a soldier over 17, but under 18, years of age who made a misstatement as to his age on enlistment, and the Army Council does not interfere with the discretion left to the Brigade Commander. If this lad has less than three months' service he can claim his discharge on payment of £10 under section 81 of the Army Act; if he has more than three months' service he may be granted his discharge as an indulgence on payment of £18. Nothing is known at the War Office of the particular case mentioned.
Will the right hon. Gentleman take steps to ensure that the Commanding Officer either discharges the boy or returns the £10 which the father paid for his discharge? He has kept both.
If the £10 was paid under the Regulations the boy is entitled to his discharge. I will make inquiries and see if the £10 was actually paid. Certainly if it ought not to have been paid it ought to be refunded.
Concessions (Ratification, etc by Parliament)
asked whether concessions entered into with private individuals or syndicates could properly be referred to Parliament for ratification, modification, or alteration; and, if so, what notice would be given to those affected?
It has not, so far as the Secretary of State is aware, been the practice to lay before Parliament for ratification, improvement, or alteration, concessions granted to private individuals or syndicates in the Colonies, nor does the Secretary of State consider that it would be practicable to adopt such a plan. As the hon. Member is aware in matters of this kind—which are purely administrative—the responsibility must rest with the Secretary of State for the Colonies.
Leeward Islands (Export Duties)
asked the Under-Secretary of State for the Colonies if he would state for what special purposes export duties were originally imposed in the Leeward Islands, and to what special purposes the revenues from the existing export duties were devoted; and what was the nature and extent of such duties?
The Leeward Islands are divided into five Presidencies, each of which has its own system of taxation. It is impossible within the limits of an answer to set out the various export duties which have been imposed in the past in each Presidency or the objects for which they were imposed. At present export duties are in force in four Presidencies. In St. Kitts-Nevis export duties are imposed on sugar and rum. In Dominica, Montserrat, and the Virgin Islands export duties are imposed on a number of articles, including cocoa, coffee, cotton, limes, animals, skins, fruit, etc. It would take too long to give a full list of the articles taxed, with the rates of tax in each case, but I shall be happy to furnish the hon. Gentleman with further information as regards any particular Presidency or any particular commodity if he desires it. The revenue derived from these taxes is paid into the Treasury of the Presidency and devoted to defraying the expenses of the Government.
If I put down an unstarred question, can I have an answer in full?
I should be glad to give the hon. Gentleman all the information we have.
Declaration of London, 1909 (Contraband of War)
asked whether, under the provisions of the Declaration of London, 1909, all foodstuffs consigned to ports in this country which ports were bases of equipment or supply for our armed forces, would in time of war be considered as contraband of war and be liable to capture; whether any definition had been arrived at between the signatories of the Declaration as to what was a base of supply; and whether foodstuffs consigned to a base of supply in Germany or France would be immune from capture if landed at Antwerp or Rotterdam, or other neutral port?
The effect of Articles 33 and 34 of the Declaration is that, if neutral ships carrying foodstuffs consigned to ports in this country which are bases of equipment of supply for our armed forces are seized by the enemy, the onus of proof in the prize court that the foodstuffs are not destined for our armed forces, or for a Government Department will rest on the owner of the goods; if he is unable to produce such proof, the foodstuffs will be liable to condemnation as contraband. The answer to the second part of the question is in the negative. With regard to the third part of the question, I beg to refer the hon. Member to the answer given him on 31st March last, and to point out that under Article 35 conditional contraband, if consigned to neutral ports, is not liable to capture.
Can the hon. Gentleman give me any information as to what is meant by a base of supply?
I cannot give any other information than was given in the Debate on the subject. We have already had one Debate on the subject, and a promise has been given that there will be another. I think, therefore, it will be more convenient to discuss argumentative questions in Debate than by question and answer across the floor of the House.
Postal Delivery Downpatrick District, County Down
asked the Postmaster-General whether he is aware that in the populous and prosperous neighbourhood within a few miles of Downpatrick, along the Killaugh Road, county Down, there are only two postal deliveries in the week; and whether, in view of the inconvenience caused, he will arrange for at least one postal delivery daily?
I am having inquiry made on the subject, and will communicate the result to my hon. Friend.
Ballinleeny, Limerick (Dismissal of Sub-Postmaster)
asked the Postmaster-General if he can say whether he has received a memorial from the people of Ballinleeny and district expressing regret at the dismissal of Patrick M. Cullinan from, the office of sub-postmaster of Ballinleeny, Kilmallock, in the county of Limerick, and also of the position of rural auxiliary postman to Fort Edmund, which he held for many years, and stating that they always found him most careful in the discharge of his duties, and praying that his case be reconsidered with the view to giving him another chance; and whether, under these circumstances, and having regard to the fact that Ballinleeny is more central than Granagh for the post office and that the removal of the post office to the latter place is an inconvenience to many of the inhabitants, who live three miles from there, he will reconsider the matter as requested?
I have received the memorial referred to, and propose further to consider the case, though I cannot hold out much expectation of a reversal of the decision come to.
Irish Fisheries Protection
asked the Vice-President of the Department of Agriculture (Ireland) if he can state on what dates within the four weeks ending 12th June the "Helga" has visited the fishing district of Ballinskelligs; whether he is aware that two steam trawlers have been trawling within a half-mile of the shore about a mile inside the Bolus headland, in other words, five miles inside the legal limits; that the trawler "Petunia" was caught by Dingle fishermen fishing inside the limits, with sails covering her name and number; whether he is aware that at least two poachers, the "Tyne" and "Cariama," have been again in the district, and that the "Cariama" had a previous fine of £60 imposed on the master in Cahirciveen; and can he state what steps will be taken to prevent the destruction of shell-fish along the headlands and the spawning-grounds by these trawlers, which are a constant source of danger to the Transatlantic cables?
The Department's steam cruiser "Helga" was in the Billinskelligs district for about three days, and the s.s. "Granuaile" was there on two other occasions within the four weeks ended 12th June. These vessels have also been in the neighbourhood during the past week. No illegal steam trawling was observed on the occasions of the visits of these vessels. The Department have received reports of alleged illegal trawling by the steam vessels "Petunia" and "Tyne." Legal proceedings are being instituted in the case of the illegality committed by the former vessel. The Department are not aware that the "Cariama" has been observed fishing within the area off Ballinskelligs in which trawling is prohibited, nor have they any record that this vessel was ever previously detected and the master fined for illegal fishing off the Irish coast. The Department will continue to use all the means at their disposal to suppress illegal trawling.
Is it not a fact that the right hon. Gentleman's Department finds it quite impossible to properly police the coast of Ireland with one steamer, the "Helga"? If that is so, will he report to the Treasury the necessity of providing funds for a second steamer or more?
We do our best; that is all we can do.
Board of Agriculture (Ireland) Report, 1908
asked the Vice-President of the Department of Agriculture (Ireland) when the Report of the Department for 1908 will be presented to Parliament, and what has been the cause of the protracted delay?
The Department are informed by the printers that they hope to have copies of the Report available in about a fortnight. The Report is of considerable bulk, and the printing and binding of a large number of copies necessarily takes some time. So far as the Department are concerned, the Report was completed on 27th May.
Bradford Schools (Report of Inspectors)
asked the President of the Board of Education whether he is prepared to print and circulate as a Parliamentary Paper the recent report of the inspectors of the Board of Education on the schools in the city of Bradford?
My right hon. Friend does not consider it advisable to depart from established practice in the direction of printing particular reports as Parliamentary Papers.
Local Registration of Title (Ireland) Act, 1891
asked the Attorney-General for Ireland whether he is aware of the inconvenience caused to landowners in the West Riding of the county Cork in consequence of the delay in the appointment of registrar of titles under the Local Registration of Title (Ireland) Act, 1891; whether transfers of land can be registered or sales completed under existing conditions; and, if not, will an appointment be made without further delay?
The hon. Member is under a misapprehension as to the difficulty which has arisen in regard to registration of title in the county of Cork. There is no vacancy in the office of registrar, and no appointment to be filled up. The Local Registration of Title Act, 1891, provides that the Clerk of the Crown and Peace of each county shall be, ipso facto, the registrar of titles for that county. The difficulty arises from the fact that Cork having two Ridings has two officials, each of whom, as I understand, claims that he is entitled to the office. The duties of the office have hitherto been performed by the Clerk of the Peace for the East Riding. In the month of December last, however, the Clerk of the Crown and Peace of the West Riding obtained leave to issue a writ of quo warranto claiming the office, and litigation between the two officers is still pending. Until it is concluded it is impossible to make any final arrangement as to the registration, but I have communicated with the Lord Chancellor, who is endeavouring to make some working arrangement with the two contending officials, so as to enable the registration to be carried out pending a final decision of the dispute.
Island of Lewis (Migration of Cottars)
asked the Lord Advocate if he will state on what ground the Congested Districts Board have now definitely abandoned the proposed scheme of migration from the Island of Lewis to the mainland, after allowing so long a period as nearly four years to elapse in considering the scheme; and will he explain how it is now proposed to deal with the cottar problem in the Island of Lewis, the cottar population in the island being 7,500, or one-fourth of the entire population?
As I informed my hon. Friend on 26th April, the proposals made to the Congested Districts Board for the migration of Lewis cottars to the mainland were not found, upon consideration, to offer the prospect of any practicable mitigation of the Lewis cottar problem, and on that ground it was decided to take no further steps in the matter. I cannot undertake to expound a policy for the Lews within the limits of Parliamentary question and answer.
Do I understand that the Secretary for Scotland and his colleagues are utterly incapable, and is their Department incapable, of formulating and carrying out a scheme for the population of the island of Lewis? Will the right hon. Gentleman say whether he intends to do anything for the population? Has he no policy?
Declaration of London
asked the Secretary of State for Foreign Affairs whether, in signing the Declaration of London, we have admitted the right of belligerents, without adjudication in a prize court, to sink neutral shipping carrying contraband of war in cases where the success of the operations in which the captor was engaged at the time might be endangered if she were to take her prize into court; and whether, if we have admitted this right, we have departed from the principles of international law which we maintained in the case of the "Knight Commander"?
Article 49 of the Declaration of London admits the right of a belligerent, in the circumstances supposed, to sink a neutral ship, before the prize court has adjudicated on the case, provided that she is carrying contraband to an amount exceeding the half of her cargo. This right is, however, subject to subsequent adjudication in a prize court, because the obligation of the captor to bring all the circumstances before the court, and there justify his action, or pay compensation if he fails to do so, is not affected. The answer to the second part of the question is in the affirmative. We have given up the contention that, under no circumstances, can a belligerent sink a neutral prize; but, on the other hand, the position taken up by the Powers claiming this right is modified to a very important extent by the safeguards introduced in the Declaration.
British Steamship "Woodburn" and Russian Man-of-War
asked the Secretary of State for Foreign Affairs whether he has any official information showing that a British merchant ship has had several shots fired at her by a foreign ship of war, whereby four men were wounded and the ship damaged; and, if so, whether he can make any statement with regard to the incident?
asked the Secretary of State for Foreign Affairs whether he has any official information stating that one of the gunboats of the Russian Imperial squadron, escorting the Russian Imperial yacht "Standart," fired upon the British cargo steamship "Woodburn" as it was leaving Frederickshaven in charge of a pilot on 17th June, seriously wounding a fireman and damaging the steamship; has he inquired into the present condition of the fireman and into the cause of the attack on this ship; and what is he going to do to prevent similar attacks on English ships during the cruise of the Czar?
asked the Secretary of State for Foreign Affairs whether he has any information with regard to the firing upon a British cargo steamer by a Russian warship in Finnish waters on Thursday last?
Perhaps I may be allowed to reply to these three questions together, as they all three deal with the same subject. The British Vice-Consul at Viborg reported on the 18th instant to His Majesty's Ambassador at St. Petersburg that the steamship "Woodburn," of Newcastle, in passing Pitkagraasi, was fired at by a Russian man-of-war. The ship was damaged, and a fireman named Coyne was wounded. The wounded man was conveyed in a torpedo boat to the military hospital at Viborg, and immediately attended to by the Russian marine doctor. The wound was in the leg, and not dangerous, and I am glad to say that the latest reports show that he is doing well. His Majesty's Consul at Helsingfors reported to Sir A. Nicolson on the same day that he was leaving at once for Viborg to inquire into the matter and report. He added that the "Woodburn" was fired on by torpedo-boats on escort duty with the Imperial yacht. On receiving a report of the incident Sir A. Nicolson at once brought the facts to the notice of the Russian Government, and asked for an explanation. Subsequent information received is to the effect that the "Woodburn," with a Finnish pilot on board, was passing through the lines. According to the regulations to be observed by vessels approaching a Russian squadron at anchor, all vessels must pass between the shore and the squadron, and not through the squadron. I may add that these regulations have been published by the Board of Trade in their "Notices to Mariners" (page 78, 1st January, 1909, Baltic). The "Woodburn" was warned by a torpedo-boat to keep outside the lines, but in spite of this warning she continued on her course. Four blank shots were then fired, but as the vessel did not stop, and was heading towards the Imperial yacht, two live shots were fired. One of these hit the vessel and burst a pipe, and a portion struck and wounded a fireman. The Russian naval officer sent on board the "Woodburn" stated that the captain of The vessel declared that he was only executing the pilot's orders. I cannot make any further statement till the Russian official report has been received and the statement of the captain of the vessel is known.
Do these regulations apply to territorial waters only?
I will send my hon. Friend a copy of the regulations.
May I inquire whether the pilotage is compulsory or not?
I am not able to answer that.
May I ask whether it is true that this wounded fireman has been offered £20, and whether the Government will see that proper compensation is offered to this man?
I have no official information upon the subject. I have only seen the statement in the newspapers.
Will the right hon. Gentleman be kind enough to inquire whether this man will get proper compensation?
Will the Government see that proper precautions are taken to prevent such regrettable incidents on the occasion of the visit to this country of the Russian Emperor?
Can the right hon. Gentleman inform the House whether this incident took place in Russian territorial waters or on the high seas? If it took place on the high seas may I ask if there is a treaty or convention which enables the Russian Government to make regulations and enforce them against British vessels?
I am sorry I cannot give the detailed information asked for by the hon. Gentleman without notice.
Will the right hon. Gentleman give an answer to a portion of my question: I think he must have overlooked it?
Before an answer is given may I inquire whether this unfortunate incident can with any approach to propriety be described as an attack on British ships?
I do not think it would be at all right to reply to all these questions till we have further information.
Siam Treaty
asked the Secretary of State for Foreign Affairs whether, in the treaty with Siam now awaiting ratification, it is proposed to transfer to Great Britain any suzerain rights claimed by Siam over the Sultan of Kedah's dominions; whether the Sultan, State Council, or people of Kedah have been informed of or consulted in regard to such proposals; and what representations have been made by or on behalf of the State of Kedah to His Majesty's representatives?
By the treaty in question the King of Siam has transferred to Great Britain all his rights in respect of Kedah. His Majesty's Government have naturally no information as to what communications, if any, have passed between Kedah and Siam on the subject; and, having regard to the complete dependence of Kedah on Siam, which has been fully acknowledged by this country, His Majesty's Government could not with propriety receive any direct representations from Kedah until the treaty takes effect. I may add, however, that there is nothing in the provisions of the treaty which will prejudice the position of the Sultan of Kedah.
Congested Districts Board, Scotland (Expenditure)
asked the Lord Advocate, having regard to the fact that the Congested Districts (Scotland) Board was established in 1897 mainly for the purpose of settling on the land persons residing in congested areas in the Highlands and Islands of Scotland, will he state why, out of a sum of £188,392 1s. 3d. expended by the Board on land schemes, as much as £159,829 17s. 10d. was expended in Inverness-shire alone, and only £28,562 3s. 5d. in the whole of the other five crofting counties; and, seeing that the Board was not formed for the benefit of one county only, but for the purpose of assisting congested districts in each county equitably, will the Secretary for Scotland request the Board to apply to these other counties any money which it is found possible to allocate for land schemes?
My hon. Friend will find all the available information in regard to the transactions of the Congested Districts Board in their reports, which are published each year; and which I may remind him have been discussed in this House from time to time. The present Government have only been responsible for the administration of the Board for the last years. Schemes will continue to be, as they have been in the past, considered upon their merits by the Congested Districts Board, in whatever county the locality under consideration may lie.
Water Supply, Vatersay
asked the Lord Advocate whether his attention has been drawn to the reports of the medical officer of health and the county sanitary inspector for Inverness-shire condemning the water supply of Vatersay as being insufficient for 60 crofter families and liable to serious contamination; and what steps the Congested Districts Board intend to take to give to their proposed new settlers an adequate water supply free from any risks to health?
I am aware of the report in question. The Congested Districts Board have also obtained reports from their expert advisers, and have sanctioned an expenditure of about £400 on the works which are recommended to them with a view to improving and safeguarding the water supply of the island.
Will the right hon. Gentleman lay upon the Table of the House the document to which he referred?
No; I do not think I could.
Island of Lewis (Cottars)
asked the Lord Advocate, in view of the fact that land is being provided for the landless cottars who, through stress of circumstances, seized land on the Island of Vatersay, Inverness-shire, will he explain why no efforts are made to find land for the landless cottars of South Shaw-bost, Island of Lewis, whose families are on the verge of starvation and in quite as deplorable a condition as the families of the Vatersay cottars?
I can only refer my hon. Friend to my answer of 16th June to a similar question.
Am I to understand that the Scottish Office have no intention of doing anything for these unfortunate cottars? Twenty-five per cent. of the population are cottars, and are liable to be moved out at the will of the landlord?
Imported Steel Billets
asked the President of the Board of Trade if steel billets from Germany imported into this country receive a bonus of 16s. 6d. a ton from the German pool or trust; if steel billets exported from this country into Germany receive no bonus on export and are met by a duty of about 30s. a ton on landing in Germany; and, if so, whether he will take steps to obtain a more favourable treatment for British manufacturers?
I am aware that from time to time export bounties are paid by certain German syndicates. So far as I am aware, no similar bounties are paid in the United Kingdom. The rate of import duty on steel billets in Germany is correctly stated. Any practicable suggestion to advance the interests of any class of British manufacturers which does not entail disadvantages to other British manufacturers or consumers will always receive my sympathetic consideration.
May I ask the right hon. Gentleman if he has read the report which has been published of the speech of the chairman of the Ebbw Vale Steel Works?
I cannot say I have.
Collodion, Ether, and Chloroform
asked the President of the Board of Trade how many gallons of collodion, ether, and chloroform were imported into this country last year; and what quantities of each were manufactured in this country in the same period?
The total imports of these articles into the United Kingdom in 1908 were as follows:—Collodion, 85 gallons; butyric ether, 341 gallons; sulphuric ether, 397 gallons. The imports of acetic ether and chloroform are recorded by weight, and amounted to 3,207 lbs. and 936 lbs. respectively. There is no official information available with regard to the quantities manufactured in the United kingdom.
East India Steam Trade Conference (South Wales Traders)
asked the President of the Board of Trade if he is aware that the East India Steam Trade Conference refuse to ship goods from the South Wales ports to Calcutta; and whether he can take any steps to remove the disability under which South Wales traders are suffering by this preferential treatment of other ports and the districts which they serve?
also asked the President of the Board of Trade if he is aware that the East India Steam Trade Conference refuse to allow shippers to employ outside steamers loading at a South Wales port for Calcutta, except under the penalty of the forfeiture of deferred rebates on shipments made by their steamers from all other ports in the United Kingdom; and whether he proposes to take steps to prevent such penalising of an important manufacturing district?
I will answer the two questions of the hon. Member together. I am now considering the report and recommendations of the Royal Commission on Shipping Rings, and I should prefer to make no statement at present with reference to the operations of any particular conference.
Unregistered Margarine Factories
asked the hon. Member for South Somerset, as representing the President of the Board of Agriculture, whether the Board instituted any police prosecutions in any of the seven cases of margarine factories found unregistered by the Board's inspectors in the year 1908; and did they give the authorities in the district information that these factories were not previously registered?
We carefully considered the circumstances of each of the cases of non-registration to which the hon. Member refers, and inasmuch as we were satisfied that there was no intention to evade the law, we saw no reason to advise the local authorities to take proceedings.
Unregistered Butter Factories
asked the hon. Member for South Somerset whether the Board instituted any police prosecutions in any of the 65 cases of butter factories found unregistered by the Board's inspectors in the year 1908; and did they give the authorities in the district information that these factories were not previously registered?
The reply to the first part of the question is in the negative. The butter factories mentioned were mot factories in the ordinary acceptance of The term, but consisted almost entirely of premises on which only the occasional reworking of butter was carried on. The occupiers of such premises were warned by our inspector of the necessity of registration, and where this was not carried out the attention of the local authority was drawn to the matter.
Is it only the practice of the Board to give warnings, and not to help the local authorities?
It lies with the local authorities in the first instance to take action.
Dirigible Airships (Funds Available for Construction)
asked the Prime Minister what funds will be made available in the current financial year for the Army and Navy, respectively, for the construction or purchase of dirigible airships and for the construction of suitable shelters for such ships?
I cannot at the moment say any more than that our requirements for the year cannot at present be estimated precisely, but funds will be forthcoming to meet such requirements.
May I ask the Prime Minister, in view of the fact that foreign types of these ships, which are available for sale, cannot be purchased in this country unless specific sums are allocated?
I must have notice of that question.
Milk and Dairies Bill
asked the Prime Minister whether he could say on what day the Second Reading of the Milk and Dairies Bill will be taken?
No, sir. I am afraid that no date can be fixed at present.
Roman Catholic Disabilities Bill
asked the Prime Minister whether the Government intend to give any special facilities for the passage of the Roman Catholic Disabilities (Removal) Bill during the present Session?
No, sir. I cannot promise facilities for any private Member's Bill at this stage of the Session.
Declaration of London
asked the Prime Minister if he can say when the legislation necessary to give effect to the Declaration of London will be introduced; and if it is proposed to ratify this Declaration before such legislation has been approved by the Houses of Parliament?
It is not clear that any legislation is required to give effect to the Declaration of London; the question will be considered in consultation with the Law Officers of the Crown. The Secretary of State for Foreign Affairs has already stated that the House will have an opportunity of discussing the provisions of the Declaration of London. Such an opportunity will arise when the legislation for giving effect to the Convention for the establishment of the International Prize Court is introduced. I am not able to give any definite pledge, but it is not our present intention that the Declaration of London should be ratified until the legislation with regard to the Prize Court Convention has been introduced.
Will the Declaration be ratified before there is an opportunity of discussing it in this House?
My hon. Friend did not listen to what I said. I said, "It is not our present intention that the Declaration of London should be ratified until the legislation with regard to the Prize Court Convention has been introduced."
Oh! I beg pardon.
Privilege of Presenting Petitions (Cardiff Corporation)
had given notice of the following question: To ask the Prime Minister whether he will consider the propriety of endowing the Lord Mayor of Cardiff and corporation with the privilege of personally presenting a Petition similar to that exercised by the Lord Mayor and corporation of Dublin on Thursday, 10th June?
This question is postponed.
No, I can answer it now. So far as I am aware, no desire has been expressed by the Lord Mayor and corporation of Cardiff for the privilege of personally presenting Petitions to this House.
That was the reason for which I wished to postpone the question.
Depositions at Inquests (Publication)
asked the Prime Minister whether, in view of the present state of the law regarding the publication of depositions taken at inquests, he will consider the advisability of proposing legislation which will transfer from the coroners to the Home Office the power to decide whether depositions shall be made public or not?
I beg to answer this question on behalf of my right hon. Friend. I see no necessity for any legislation on the subject. It is the usual practice of coroners to admit the Press and the public to inquests; but depositions taken at inquests, like those taken before magistrates, form part of the records of the Court, and it is for the Court to decide in any given instance what persons should be given access to its records.
Is the right hon. Gentleman not aware that during the past few days a Metropolitan coroner has refused to allow the depositions to be made public?
No, Sir; I think the hon. Member is under a misapprehension.
Shop Hours Bill
asked the Prime Minister when it is intended to introduce the Shop Hours Bill?
I hope to introduce the Bill soon, but am not yet in a position to name a date.
Irish Dairy Butter (Allegation against Merthyr Firm)
asked the hon. Member for South Somerset whether his attention has been called to the terms of an advertisement published in a Merthyr newspaper, of Saturday, the 12th instant, over the name of D. Jones, Dickenson, and Company, Limited, American Market, Dowlais, purporting to sell choicest centrifugal creamery butter from the leading dairies of Ireland, at 11d. per pound, made from fresh cream rising naturally from the milk; will an inquiry be made into this case; and if it is found that fraud has been attempted will a prosecution be ordered?
We are aware of the advertisement mentioned, and are in communication with the Irish Department of Agriculture on the subject.
Is not this the firm that was fined in January last at Cardiff for selling factory butter for creamery?
I have not the information to answer.
You ought to have the information. That is what you are there for.
Order, order. The hon. Member ought to put the question down if he wants specific information.
Mr. Thomas Abraham Bayliss (Appointment to the Magistracy)
asked the Secretary of State for the Home Department whether he is aware that Mr. Thomas Abraham Bayliss, who has been gazetted as a magistrate in Worcestershire, was one of the defendants in the appeal case of Barker versus Sullivan and others, reported in "The Times" of 31st October and 1st and 2nd November, 1901, and 17th April, 1902; that the jury found that the defendants, including Thomas Abraham Bayliss, had issued an untrue, false, or misleading prospectus fraudulently and recklessly, without reasonable grounds for thinking it was true; and that on appeal the verdict and judgment in favour of the plaintiff were allowed to stand, the question of fraud being considered as not having been dealt with at all in the Court of Appeal; and whether these facts were known to the Lord Chancellor when Mr. Thomas Abraham Bayliss was appointed to the office of a justice of the peace?
The Lord Chancellor informs me that he had never heard, until he saw this question on the Paper, of any of the facts or proceedings alleged by the hon. Member. He has directed inquiry to be made, and will be obliged if the hon. Member will supply him with any further information he possesses on the subject.
Old Age Pensions (Cost of Maintenance)
asked the Secretary to the Treasury whether he is aware that pension officers make allowances for the maintenance of a young man or young woman working on their father's or mother's farm at from £8 to £10 per annum, while in the case of an aged father or mother maintained by a son or daughter the cost is estimated at from £20 to £30 per annum; and if he will explain how the cost of maintaining a man or woman over 70 years of age is calculated at double or treble the cost of a man or woman in their youth?
I am not aware of any case of the kind referred to in the question, but if the hon. Member will furnish me with particulars of any such case I will make inquiry.
Has the hon. Member made any inquiry? It is the general practice of the Local Government Board in Ireland.
Old Age Pensions (Ireland)
asked the Chief Secretary for Ireland whether he is aware that several Old Age Pension Committees, including that of Tipperary, have over and over again by resolution asked the Local Government Board to supply them with the grounds on which they refuse on appeal to grant pensions sanctioned by those committees; and whether, as valid reasons can be produced in favour of the decisions come to by the persons closely in touch with the circumstances connected with each case locally, he will take steps to have the requisite information furnished?
A few resolutions to the effect indicated, including one from the Tipperary Pension Committee, have been received by the Local Government Board. As regards the remainder of the question I would refer the hon. Member to my reply to the question asked by the hon. Member for North Meath on 25th March last. The Board carefully consider any opinion expressed by a Pension Committee with respect to the merits of any claim.
Is the right hon. Gentleman aware that it is a fact that the Pension Committees have over and over again asked the Local Government Board to provide them with information on which they refuse on appeal to grant pensions sanctioned by those committees, and in all cases they have refused to do so? Will the right hon. Gentleman in future undertake that these committees shall be supplied with the grounds of these refusals?
The hon. Member knows very well that we cannot undertake to supply these particulars in every case. I have already indicated a desire that in cases where it might be supposed that all the facts were not within the knowledge of the Pension Committee and all concerned that the facts should be given.
The evidence before the Pension Committees and the returns of the pension officer are sent to the Local Government Board, and they are never sent back to them in order that they may take action.
I will inquire into that matter.
Mercantile Marine (Arming)
I wish to ask the First Lord of the Admiralty how long it would take to arm the ships of the mercantile marine which, in case of war, would be employed as armed cruisers; and if he will state where their guns are kept and how many vessels could be employed?
It is not desirable in the public interest to answer either of these questions.
Finance Bill ("Minerals")
Will the Chancellor of the Exchequer state whether clay suitable for brick-making or puddling is included under the term "Minerals" in the Finance Bill?
I must refer the hon. Member to the reply given by my right hon. Friend on the 16th instant to the hon. Member for the Holborn Division.
Super-tax Deductions
I desire to ask the Chancellor of the Exchequer whether, in calculating income for the purpose of the Super-tax, deductions may be made in respect of payments for life insurance premiums?
Yes, Sir.
Licensed Premises (Compensation Value)
asked the Chancellor of the Exchequer what is the arithmetical formula by which his experts arrive at the annual compensation value of licensed premises; what is the capital amount of the compensation from which such annual compensation value is deduced; how is that capital compensation also arrived at; and upon what data?
No arithmetical formula can be used, it being necessary to deal with each case on its merits. Compensation values will be calculated in accordance with the provisions of the Licensing Act, 1904.
Undeveloped Land Tax (Ireland)
I desire to ask the right hon. Gentleman whether agricultural land in Ireland held under a judicial tenancy will be subject to the Undeveloped Land Duty; whether, in arriving at the site value of land, the value of the tenants' interest is to be taken into account; and whether the landlord will have to pay the whole tax, or whether the tenant will have to bear a proportion corresponding to the value of his interest?
Assuming that the value of the land is due solely to its capacity for agriculture, the answer to the first part of the question is in the negative; the answer to the second part of the question is in the affirmative; the third part of the question does not arise.
Hotel Licences
asked the Chancellor of the Exchequer if his attention has been called to the report just issued of the Royal Hotel, Blackfriars, in which a reduction of the dividend from 5 per cent. to 3 per cent. is explained as being due to the uncertainty the directors feel as to the outcome of the proposals made in the Budget; and if he can make any statement with regard to the modification of these proposals with regard to hotels?
My right hon. Friend's attention has not previously been called to the report in question. The answer to the last part of the question is in the negative.
Finance Bill (Definition of "Minerals")
Will the Chancellor of the Exchequer state whether Bath stone, York stone, Scotch granite, Cornish granite, mineral oils, salt, shale, whinstone, marble, quartz, limestone, flint, chalk, gravel, sand, sea-sand, shingle, fireclay, brick earth, fuller's earth, china clay, sandstone, basalt, and slate are included in the definition of minerals in the Finance Bill; and whether he can state the name and reference to the case in which the decision was given with reference to each of the before-mentioned articles?
There is no special definition of "minerals" in the Finance Bill, and the term has the meaning which has been attached to it in various cases by courts of law. The leading cases on the subject are all referred to in the recent case of the Great Western Railway Company v. Carpalla United China Clay Company (Limited), (1909), 1 Ch. 218. That case is, of course, a decision not on the definition of minerals generally, but on the definition of minerals for certain special Acts; but the general meaning of the word "minerals" is discussed in that case, and in other cases referred to in the arguments and judgments. I may also refer the hon. Member to the reply which my right hon. Friend gave on the 16th instant on this subject to the hon. Members for the Holborn Division, for Darlington, and for Stepney.
Does the right hon. Gentleman concur in the judgment given by Lord Justice Fletcher Moulton that a mineral is "any substance that can be got from within the surface of the earth which possesses a value in use"?
Can the Chancellor of the Exchequer state whether in the term "mineral" brass is not included?
Can the right hon. Gentleman state whether the articles enumerated in my hon. Friend's question are or are not minerals?
The definition depends on various cases already decided.
Then everybody possessing something under his land will have to go to the Court of Appeal for a definition?
That is a matter for argument when the question arises.
Licence Duties (Concessions)
asked the Chancellor of the Exchequer if, in view of his announcement of substantial concessions in respect of Scottish and Irish Licence Duties and analogous provisions in the Finance Bill, he will undertake not to differentiate his proposed taxation to the detriment of the English taxpayer?
My right hon. Friend has no intention of differentiating between the English taxpayer and the taxpayer in Scotland and Ireland.
Will the right hon. Gentleman tell the House whether the Welsh taxpayers are prepared to undertake their portion of this burden, more especially since the withdrawal of Welsh Disestablishment?
Presentation of Statutes
I wish to ask, Mr. Speaker, whether you are in a position to give a decision on the question of the presentation of statutes, etc., required by law to be laid upon the Table, arising out of the extraordinary delay in connection with the presentation of the statutes of the Queen's University, Belfast?
In reply to the hon. Gentleman, I have to say that I have given instructions that in future such documents are not to go out of the possession of the Librarian, so that they may be available to all hon. Members who may desire to consult them. The result of that will be that if any Department wishes to print a document they must leave one copy here and take a copy for themselves to send to the printer.
Finance Bill (Procedure)
:I desire to submit to you, Mr. Speaker, that the first six clauses of the Finance Bill cannot be considered to-day, on the ground that they impose duties which are unauthorised by the Ways and Means Resolution, on which they are supposed to be founded. That Resolution was passed on 12th May, and it authorised a duty on the increment value "to be taken on the occasion of the transfer or the grant of a lease of the land, and on the occasion of the death of any person where the property passing on his death comprises any such land, and in the case of land belonging to a body corporate or any body unincorporate, on such periodical occasions as Parliament may determine."
I submit that Clause 1 and the five following clauses greatly extend what is authorised in the Ways and Means Resolution. Clause 1 proposes that the duty shall be due
May I refer to an exactly similar situation which arose on 24th May, 1894. Upon that day, on the Order for the Committee stage of the Finance Bill being read, an hon. Member submitted to Mr. Speaker Peel that Clause 15 of that Bill went beyond the Ways and Means Resolution on which it purported to stand, and therefore could not be considered. Mr. Speaker Peel in his ruling said:—
I am obliged to the hon. Member for having given me notice of his intention to raise the point, and for having directed my attention to a previous ruling of one of my predecessors. With regard to that case, I may point out that it was generally agreed that it was an omitted Resolution. I think that the Chancellor of the Exchequer at the time, the late Sir William Harcourt, did at once agree to submit to the Committee of Ways and Means a fresh Resolution because the case had been omitted. In this case I have to decide whether the use of the words "the land" is sufficiently wide to cover the reference to "the land and the interest in the land" which is contained in the first six clauses of the Bill. It must be remembered that the Resolution is drawn as widely as possible, and that the limitation and definition would come subsequently in the Bill. I have come to the conclusion, but I must say after considerable doubt, and after taking the best advice I could get on this matter, that the words used in the Resolution are sufficient for the purpose, and in my judgment it is therefore open to the Committee to consider these clauses when they are reached. With regard to the Instruction of the hon. and learned Member for Waterford (Mr. John Redmond)—" That it be an Instruction to the Committee that they have power to insert clauses in the Bill, in accordance with the provisions of the Act of Union, to allow Ireland the special exemptions and abatements provided for in that statute, so as to ensure that her taxation shall not exceed her relative taxable capacity as compared with that of Great Britain"—I may say that it is open to the hon. and learned Member to take that course in Committee on the Bill either by a single clause or by raising the question as an Amendment upon the first clause which he considers affects the interests of Ireland.
May I respectfully ask you, Sir, whether in giving that ruling you have taken into consideration the-fact that it was rendered impossible for me to raise a general discussion on this question, because of the Amendment against the second reading of the Bill moved by one of the Leaders of the Official Opposition, and whether it will not be impossible for me to raise a general discussion upon the clause of the Bill except in a piecemeal fashion, which would not only be embarrassing to the House generally, but an ineffective way from my point of view. I ask you, Mr. Speaker, whether there is no other opportunity of raising a general discussion except by a new clause at the end of the Bill, which is postponing the matter, I am afraid, for a very long time?
There is no doubt that the hon. and learned Member might have raised this Question as a second reading objection, if he had got first place, in opposition to the second reading; but he was cut out and prevented from raising that definite issue by reason of the rejection of the Bill being moved on the second reading. This, however, does not preclude him from raising the question in Committee. Whether the proper course would be to move a specific clause applying to the whole of the Bill, or whether it will be proper to raise the point upon each clause which affects Irish interests, is a matter not for me but for the Chairman of Ways and Means to decide on the first Amendment which raises the question. I am sorry that I am unable to assist the hon. and learned Gentleman any further.
I have an Amendment down to the first clause, but I understand that it cannot be moved, and I am thrown back on the course of moving a new clause at the end of the Bill.
Finance Bill
Considered in Committee.—[ First clay. ]
[Mr. EMMOTT in the chair.]
(IN THE COMMITTEE.)
Part 1.—Duties on Land Values
Increment Value Duty
CLAUSE 1.—(1) Subject to the provisions of this part of this Act, there shall be charged, levied and paid on the increment value of any land a duty, called increment value duty, at the rate of one pound for every full five pounds of that value, and the duty or a proportionate part thereof shall become due
( a ) on the occasion of any transfer on sale of the land or any interest in the land, or the grant of any lease (not being a lease for a term of years less than seven years) of the land; and
( b ) on the occasion of the death of any person dying after the commencement of this Act, where the land or any interest in the land is comprised in the property passing on the death of the deceased within the meaning of sec- tions one and two of the Finance Act, 1894, as amended by any subsequent enactment; and
( c ) where the land or any interest in the land is held by any body corporate or by any body unincorporate as defined by section 12 of the Customs and Inland Revenue Act, 1885, on such periodical occasions as are provided in this Act;
and on each of those occasions the duty, or proportionate part of the duty, due, so far as it has not been paid on any previous occasion, shall be collected in accordance with the provisions of this Act.
The Amendment of the hon. Member for the West Derby Division of Liverpool (Mr. W. W. Rutherford) to leave out Part I. is not in order. The Amendment of the hon. Member for the Handsworth Division of Staffordshire (Mr. Meysey-Thompson) to postpone Clause 1 is in order.
My Amendment is to postpone Clause 1, because how is it possible to distinguish between the increment due to the owner or occupier and the increment which we are told is brought about by the general prosperity of the community? To illustrate what I mean, take the case of a village in which the owner of the soil, with great enterprise, has taken up the interests of the district, and has discovered a mineral spring thereupon. He has spent money and influence in developing the opportunities which present themselves; he has created a Spa, and he builds houses all around. He risks his money and induces his friends to come down there. He is the only man who stands to lose. On the other hand the village doctor and the village lawyer gain enormously. What I want to know—
On a point of order this is a Motion to postpone Clause 1. The hon. Member, as I understand, is arguing the merits of the increment tax. I submit that the question of postponing the clause is a very narrow issue, and that the merits of the proposal itself do not come in on this Motion.
I do not think that what the hon. Member is saying is in order. We are only dealing now with the postponement and not with the merits of the clause, which can be raised on a subsequent occasion. This is merely a question of postponement.
I do not quite understand. Am I to speak on the question of postponement or not?
Certainly, on the question of postponement.
When shall I be in order in speaking on Clause 1?
If the hon. Member wishes to object to Clause 1 he must wait till the end of the clause, when the Motion is put "that the clause stand part of the Bill."
Then I beg to move that the clause be postponed.
I desire to say a few words in seconding this Motion. I have to submit that in discussing Clause 1 we cannot possibly adequately consider the proposals contained in it unless we also bear in mind the provisions of subsequent clauses. I desire to ask the Committee to remember what happened in the course of the discussion of the Licensing Bill last Session. That Bill in detail very largely resembles the Bill which is now under discussion, and it will be in the recollection of every one on both sides of the House that constantly, when we were discussing the proposals of that measure, there was a condition of muddle and chaos which was caused by the fact that when we were debating one particular point the Minister in charge suggested that the explanation could be better given on a subsequent clause. That happened constantly in the course of the Licensing Bill. Certain proposals were made, the Committee began to discuss the clause, and was told that the meaning could not he made clear until a subsequent clause was reached. I do not want to rake up old controversies. I submit to the Chancellor of the Exchequer that it is extremely undesirable, from the point of view of both sides of the House, that this sort of thing should recur. It would obviously not be in order for me to refer to Clause 2 in detail, and it is equally obvious that on Clause 1 we cannot discuss the proposals of Clause 2. There are on that clause questions with regard to decrement and transfer and to the local authorities, and hundreds of other controversial subjects, which will be raised on both sides of the House, and it will be necessary to discuss them before we can really come to an understanding with regard to the meaning of the clause which we are now discuss- ing. I consider the arrangement of these Land Clauses most extraordinary. Why should they have been put first in the Bill? Surely the Government might have had time to arrange them differently! I am driven to suppose by the attitude taken up by the right hon. Gentleman that the Government in regard to the arrangement of the clauses have a deliberate intention rather than an accidental one of getting the minimum of discussion on the important points, and I am perfectly convinced that we shall have the right hon. Gentleman admitting that these questions can be better discussed on other clauses. The whole object, since the Budget speech was delivered, has been to avoid discussion and to produce some illusory point which will have to be raised at a later stage. I believe that is the object in arranging the clauses in the way it has been done, and I submit we are fully entitled to ask the Government to allow the clause to be postponed. Clause 2 is really the important clause of this part of the Bill, and without discussing it it is quite impossible to discuss Clause 1. If Clause 1 is first discussed, the inevitable thing will happen. We shall have the same thing which occurred in the course of the Debates on the Licensing Bill. We shall not get a genuine discussion at all. I appeal to the right hon. Gentleman to consider whether he cannot agree to the proposal of my hon. Friend, and allow us to discuss the really important clause of the Bill before we discuss this one. I submit further, that if we do not do that we shall not be able to have any real discussion.
I desire to support the Motion of my hon. Friend behind me, but not on quite the same grounds, not because I do not agree with him, but because I think there is another ground which I cannot help believing may appeal even more strongly to hon. Members opposite who find in this Bill an expression of their most earnest desire. Those hon. Gentlemen who support the Government must realise that this Bill proposes to set up an entirely novel system of taxing certain classes of property. It proposes for the first time to place certain burdens on property to which it has not hitherto been subjected. It is proposed not merely to add to the tax on land, but it is introducing quite a novel system of taxation. We will assume there are some Members of the House who are convinced that the methods adopted by the Government are right, but there are others who do not agree that the Government are going on a right principle, but who, after they have heard the argument which it has not been our privilege to hear up to the present, may possibly be converted to the new system. I do not care whether hon. Gentlemen are opposed to the principle or are in its favour, but the fact remains that it is proposed to set up an entirely new method by which a very large proportion of the property of this country is to be taxed in the future, and we, therefore, ought to have in the forefront of the Bill the clauses which set up the new authority and the new machinery by which that work is to be carried out. There may be some who may not be prepared to support the Bill, and that being so I think they are justified in asking what the Government means by putting Clause 1 in the forefront of the Bill. They are asking the Committee to commit itself to the principle without having the facts before them. It may be said that we have no right to discuss on Clause 1 any other clauses which set up the machinery, but we are asked to approve in Clause 1 the principle of the Bill as applied to the taxation of land, a principle absolutely novel, which singles out land for special treatment as apart from other classes of property. In subsequent clauses these powers are placed in the hands of certain people—Commissioners—to whom there is a right of appeal, but there is nothing more remarkable about it, I venture to say, comparing this with other Bills with which this House is familiar, than the fact that these extraordinary and novel powers are to be placed in the hands of the Commissioners. There is no greater difficulty in studying the Bill than to find out where the Commissioners come in. I do submit that the arrangement of this Bill is inconvenient, unjust, and improper, and I shall do my utmost throughout the consideration to resist its passage through the House. I submit that, whether you are in favour or whether you are opposed to the Bill, this policy of destroying our present land system by this insidious procedure is not in the interests of the country, and I, therefore, ask the House not to take this definite step in absolute ignorance of the methods by which that step will become effective thereafter. For these reasons I submit this clause ought to be postponed, and I cannot help thinking—I do not want to help the Gov- ernment, nothing is further from my desire—I cannot help thinking that it would be in their own interest if they were to postpone the clause and let us take, first of all, one of the subsequent clauses, which creates machinery, and which introduces the Commission, and let us know, at all events, who are to constitute this extraordinary body, which is to be charged with these exceptional and peculiar powers which I think ought not to be placed upon the shoulders of anybody in this country. For these reasons I support the Motion of my hon. Friend, which I believe to be in the interests of good discussion quite as much as it is in the interests of common justice.
The Motion which we are now discussing has a very familiar appearance. We are all accustomed to opposing Acts of Parliament, and we all start in this time-honoured fashion, and some of us know from experience how very, very difficult it is to say anything in support of it, and, therefore, we need not wonder that hon. Members have failed to say anything which should induce us to accept the proposal. The hon. Member who introduced it did not know what it meant, but thought it was a discussion of the whole of the clause, and when he understood what it really meant he sat down without moving it, but hon. Members came to his rescue, and said, "If you cannot explain it, at least move it," and he then thought that that would be a very natural course, and said, "I move," although he had no idea why. Then the Noble Lord who followed him, and who has had some experience in this matter, made some very laudable efforts to bring before the House arguments in support of this Motion, but I really did not know, and I have not the information now, what the reasons he advanced are for postponing this clause. So far as I could see, his objection to it was that the principle of the Government was to move on.
I never said anything of the kind. I said the object of the Government was to postpone discussion, and I said, when we came to discuss this clause, their attitude would be that it would be impossible to explain the details of it until we got on to the next clause.
I took down the exact words he used. He said our principle ever since we had been in office was the principle of moving on, and it seems to me to be a very good and reasonable method, whether it is in regard to an Act of Parliament to carry out a Budget or anything else, and I hope he will act as a policeman and help us to move on. But really I could find that he gave no other reason. He said something about the controversy being a long one, and I do not doubt that for a moment there ought to be reasonable discussion of all these proposals, although I do not agree with him that it should be very bitter. After all, if the Parliament of this country cannot discuss questions about which there may be very strong opinions—if we cannot discuss things of that sort, in regard to which we may have very strong feelings, and about which there may be considerable antagonism, without bitterness, it is not, I think, creditable to this Mother of Parliaments. I think it is possible to discuss matters about which we are most deeply moved without any real bitterness of feeling. We have discussed things in this House about which we have felt just as keenly, without much bitterness. When the present Leader of the Opposition was moving Bills, about which we felt keenly, we discussed them, including as they did the Education Bill, without very much bitterness in this House. I come to the first real argument which was used at all, in support of this Motion, and I do not think that there can be any possible or any greater proof of the weakness of the case for the postponement proposed, than the fact that even the right hon. Gentleman was unable to advance anything better than he did. But what did he say? He said you ought to postpone this clause, and you ought to have the machinery first.
The tribunal.
You may take that as part of the machinery.
Oh!
Very well; I will take the tribunal first. That seems to me to be exactly the wrong way of going about it, and not only that, it is absolutely without precedent. I think if the right hon. Gentleman looks at any Finance Bill, and at every Finance Bill, he will find that the first thing is always the tax. In regard to the Income Tax, in the Finance Act of 1894, first of all you have got the actual tax, then you proceeded to discuss the machinery, and, after all, the tribunal is part of the machinery for the imposition of the tax, but you must have a Clause 1 before you can come to Clause 2, and if I were to put Clause 2 first, I am perfectly certain we should have a Motion to postpone it, and we should be told that we had departed from every precedent by putting Clause 2 first instead of second. I can understand the objection of the right hon. Gentleman if the first clause came into operation the moment is passed the Committee, and before the tribunal was considered, but that is not the case. If the clause came into operation the moment it was passed and before the tribunal was discussed, then I can well understand his wish to adjourn or to postpone its consideration, but after all, the tribunal has got to be discussed before the clause comes into operation, and I should think that there was really very little to be said for the proposal. This Motion had to be made. I have done my very best to give this matter my best consideration, and I do not think anyone drafting this Bill could take any course except that which the draftsman of this Bill has taken, in putting first of all the tax and then proceeding to the machinery.
I am sure the right hon. Gentleman has endeavoured to treat the argument with respect, but I do not think he has done so with a full comprehension of the point really raised. He desires to discuss this Bill with amity. So far as I am concerned, whether on this side of the House or on the other, I never wish to introduce bitterness in our Debates. I do not know whether the right hon. Gentleman, when I look back on his record, has so clear a conscience in that respect. I think I remember something about the Authorities Bill, which created not passionate language, but passionate action, on the part of the right hon. Gentleman, but I need not go into that. I propose to adhere rigidly to the Amendment, and I think the right hon. Gentleman has not listened to the argument which induced us to feel rather strongly that this clause, and indeed these clauses, should be postponed until we can get to the valuation clauses. These valuation clauses might, and in my opinion ought to, have formed a separate measure—a separate measure altogether. If I were on the Constitutional aspect of this measure I think a very strong Constitutional argument could be made out that a Valuation Bill ought not, with any Constitutional propriety, to be introduced in a Finance Bill, and very serious Constitutional issues might thereupon be founded. Those Con- stitutional issues I do not touch upon. I restrict myself to the no less important aspect of the Question, namely, the practical course to be pursued. We have had promised a Valuation Bill over and over again on both sides of the House, and it has been universally recognised in the whole history of our legislation—in our promised legislation, and the history of our promised legislation is almost as interesting as our actual legislation—it has always been held that the Question of land valuation was a separate problem by itself, and it was because everybody felt that you could not deal clearly either with rates or taxes until you had had valuation that everybody said let us have the valuation before you seek to deal with the financial question, which depends upon valuation. Nobody denies that. It is the general view of legislation which has always obtained in this House. What have the Government done? They have postponed in their Bill what ought to have been a separate and isolated measure until they have put in operation measures of taxation which have no meaning, which are impracticable and scarcely even intelligible until the valuation clauses of this measure have had real consideration and discussion. I say that is not a rational or logical or fair method. I say that is not a method in which the traditions of this House suggest that you should deal with this matter, and unless the right hon. Gentleman can dispute the major premise of our contention—namely, that the general view has always been on both sides of the House that the first thing to do was a Valuation Bill, and the next thing to use the results of that Valuation Bill to deal as the House thought fit with matters of local or imperial taxation—until he has disposed of that earlier premise, it seems to me, that he has not answered our contention at all, he has not touched even the fringe of it. I do ask the right hon. Gentleman to consider—I do not ask him to touch upon the larger question which I touched upon, that the whole valuation scheme might be considered quite apart from finance, and not as financial, but my point is, that as we have always admitted that valuation should come before taxation, so if you choose to embody both valuation and taxation in one measure, you ought to take valuation first and taxation second. That point of view the right hon. Gentleman, with all his desire to treat our arguments with respect, has not succeeded in touch- ing, and I hope some other hon. Member on that Bench will deal with it more successfully than he did.
I intend to vote against the postponement of this clause, and I intend, in two or three sentences, to explain my reasons for doing so. The Leader of the Opposition and the right hon. Gentleman the Member for South Dublin (Mr. Walter Long), are perfectly consistent in supporting this Motion, because they entirely disapprove of the first principle contained in this Bill, that is, the taxation of the increment value of land. That is a great and important principle, and as they have a right to say, a new principle of taxation in this country, and any man who opposes that principle has the right to take the action which has been taken in this instance, of moving the postponement of this clause, but to propose that you ought to set up machinery, before you decide what the machinery is to do will not hold water for a moment. The real motive for this Amendment is hostility to the principle of this clause, and the right hon. Gentlemen are opposed to it. I am in favour of the principle in this clause, and I have been for thirty years voting and speaking in favour of the principles of it. My only interest is in two points. First, whether this taxation can in any way be held to apply to agricultural land, and, secondly, as to how the yield of the taxation is to be spent, because we take the view very strongly that the yield of the taxation ought to go to the local authorities. Those are the points upon which I am anxious, and which I want to see discussed. The principle itself is one which I have always supported, and I shall certainly vote against the Motion, which is intended and would have the effect of preventing us coming to the discussion of these two points connected with the taxation of land with which we are concerned.
It was not necessary for the hon. and learned Gentleman to tell us he was in favour of the clause, because we all knew perfectly well that Ireland was not affected, and that he was in favour of it. No one knows better than the Chancellor of the Exchequer how to draw a red herring across the path if he does not want particularly to answer the question; therefore he availed himself of the fact that the Mover of the Motion happened to be for a short time out of order. No one knows better than the right hon. Gentle- man himself that this is an extremely proper Motion to make, and one which is extremely difficult to answer. I am anxious that we should have a proper Debate upon this very important question, and that every man in the House should understand what he is doing when he is called upon to vote upon these clauses. If we do not postpone Clause 1 any hon. Member who has to vote upon the question that Clause 1 stands part of the Bill will be put in a very difficult position. This is a new tax. The right hon. Gentleman told us that in every other instance the tax comes first, and he instanced the Income Tax. The Income Tax is over 100 years old, and everyone knows what it means, but no one in the least knows what this new tax means. That I am correct is evident from the fact that a large number of the flower of the party opposite have protested against it, and have had an interview with the Prime Minister. Clause 2 defines the increment value, and I submit that if Clause 1 is postponed we shall, by discussing Clause 2 and the subsequent clauses, have an opportunity of learning what it is they intend to do by the tax. Then we have found out what the meaning of the tax is it will be time enough to vote whether or not we shall impose it. At present we are putting the cart before the horse. We are beginning to impose the tax when we do not know in the least what it is, and when we have agreed to impose it we are going to discuss what it is and how it is going to be done. I am sure the right hon. Gentleman wishes that his own supporters and Gentlemen below the Gangway should give a sincere and intelligent vote upon the clause, and they cannot do that until they understand in the light of subsequent clauses what this clause means. Therefore, in the interest of progress and expedition in discussing the Bill, and in the desire that the country shall really understand what we are being called upon to vote for, I support the Amendment.
Though I agree with every word that has fallen from the hon. Member and my right hon. Friend as to the desirability of taking the valuation part of the scheme before the first clause, I myself go a little further than they do, because, in my view, not only should this clause be postponed, but all the other clauses dealing with the land taxes, and I think hon. Gentlemen opposite will really see that that is a business-like course to take in dealing with the Bill if they will give the matter five minutes' consideration. The Land Taxes raise the most controversial and difficult questions which can possibly be raised. Every line of the Land Tax clauses raises a fresh and difficult question. There is not only the question of valuation and of the tribunal; there is the actual question of the desirability of the Increment Duty, the Reversion Duty, and the other taxes, and the difficult and complicated questions as to whether agricultural land should be included, and whether the Land Tax should go to the local authority. All these questions will take a very long time to consider, and will raise very acute subjects of difference between us.
On a point of order the Noble Lord is now raising a very wide issue which could have been raised on an Instruction. It is the question of the postponement of the whole of the Land Taxes. I submit that that ought to be moved on an Instruction, and that on the mere question of postponing Clause 1 we cannot discuss here the desirability of postponing the whole of the Land Taxes, which would involve questions of the yield which have nothing to do with Clause 1, except to a certain very limited extent, and that therefore the Noble Lord has missed the one opportunity; in fact, hon. Members opposite have deliberately withdrawn it—raising the whole of that issue by withdrawing the Instruction.
On that point of order I submit that the argument I am endeavouring to address to the Committee is perfectly relevant. I desire to postpone Clause 1, and one of the reasons is because I shall afterwards move to postpone Clause 2, and so on. It surely is a perfectly legitimate reason for postponing Clause 1, that it forms part of the scheme which ought to be taken later on. As to the Instruction, that is a wholly different matter, raising quite a different question, and might have had a very different fate. I did not put the Motion down, and have nothing to do with it.
I have nothing to do with the question why hon. Members did or did not move the Instruction. The only point I have to consider is whether it is a relevant argument if an hon. Member objects to the Land Taxes to say, "I wish to postpone Clause 1 because I object not only to Clause 1, but to Clauses 1 to 28, and I desire to get rid of the lot." That I think is a proper argument to use. Of course, the Noble Lord must not enter into too great detail into the matter, or else I shall have to point out that he is discussing the merits of the question.
All I desire to point out is that this forms part of an exceedingly complicated scheme which will produce very little result, and, indeed, if the account the Attorney-General gave the other day of this tax is correct, the cost of collection would greatly exceed any possible yield from the tax.
Is the Noble Lord ascribing that observation to me?
No; it is the conclusion I drew from the hon. and learned Gentleman's observations. That being so, is it not perfectly silly, if one may say so, of a Government to ask the Committee to enter upon this long and complicated discussion which is going to produce exceedingly little result, at the very outset of the discussion of the Bill. Surely the proper course for us to take is to postpone the clause till the end of the Bill. Then it may not be necessary to deal with this thorny subject at all. It may well turn out that the £500,000 is not absolutely necessary for the service of the State, and there will be no justification whatever for gratuitously raising these questions. If we proceed with the other parts of the Bill we shall be in a better position to know where we stand and what the actual needs of the State really are.
I wish to associate myself with the arguments which have just fallen from my Noble Friend. He said when we have discussed the clauses we may then discover that they are not necessary for the financial exigencies of the year. We need not wait till then in order to make that discovery. It is a matter of common knowledge now that owing to the death of Mr. Morrison the Government have received a greater sum of money than all these clauses would bring in, and therefore that the whole of the first part of the Bill is not directly or essentially concerned with those needs for which the Finance Bill is normally introduced. That being so, it would be more businesslike and in accordance with precedent to address ourselves to the financial needs of the country, and to postpone a discussion which would be just as well undertaken next year or in three years' time.
I support the Motion, which is not, as the Chancellor of the Exchequer suggested, in any way a dilatory Motion. A very large number of people a quarter of a century ago in debating societies were in the habit of passing resolutions on the desirability of seizing a certain amount of unearned increment. They were very unanimous in passing the resolutions, but the difficulty always began when they came to the business question as to how to carry out that end. That, I think, is the difficulty which the House will find itself in, and when you come to details you will find it impracticable and impossible. Let me deal with the difficulties which arise at the outset. Take the tremendous expense. The difficulty has always been in dealing with land values to deal with the expense of land valuation in the first instance. I will assume that the method of the Bill is best, namely, that the unfortunate owner of the land has to do it himself.
I do not understand the relevance of these observations.
My point is that the House should not commit itself to imposing the tax until they have satisfied themselves that it can be equitably and properly carried out by proper machinery. The House by committing itself to the tax now, before it has considered the difficulty, is putting the cart before the horse. They ought to deal first with the question whether it is practicable to carry out the taxation, and then, when they have discovered that it is practicable, pass Clause 1. The basis of the difficulty of dealing first with Clause 1 is that we do not know how you propose to deal with the question of valuation. The owner has to carry it out, and we know perfectly well that the owner includes a trustee—
The hon. and learned Member is discussing the merits of the question. He cannot do that now.
I shall be careful not to deal with the question on its merits. I wish to point out that there are difficulties in front of you in regard to definition of owner. I put my argument in that form. The owner may possibly have to include trustees or mortgagees. Then there is the question of expense when dealing with a large property which is split up into a number of small houses. [Cries of "Order.'] If hon. Members will consider the matter they will see that I am absolutely in order in pointing out the difficulties of machinery which must be faced before you can deal with the question of taxation. If you shut your eyes to these difficulties, of course, you can pass a clause imposing a tax of this kind. The object of the Amendment is that the Committee shall face resolutely, first of all, the difficulties of machinery, and directly you have done that you can proceed to consider whether the tax ought to be imposed. The difficulties are obvious when dealing with the question of valuation. Large expense must fall on the owners of a particular property—
The hon. and learned Member is not in order in dealing with the question of the large expense which will fall on owners. That is a question for later consideration, and it does not arise on the Amendment to postpone the clause. He must confine his remarks to the question of postponement.
I will simply indicate broadly that there are difficulties which will arise as to machinery. I will not refer in detail to the difficulty as to the tribunal before whom these difficulties will have to be determined.
Knowing the record of the Government in regard to the application of the closure and the use of the guillotine, I am afraid that if Clause 1 is not postponed we shall not have an opportunity of discussing the machinery and the incidence of the tax at all. We shall be treated in the same way as in connection with the Housing and Town Planning Bill. We shall be told that two days are sufficient to discuss the subsequent clauses. We shall be told that the House has accepted the principle of the first clause, and that, therefore, we cannot discuss in detail minor points on the subsequent clauses. I can foresee the Chancellor of the Exchequer coming down to the House with a schedule arranged for the obliteration and the guillotining of Members on this side of the House. That is one reason why I think Clause 1 should be postponed. It is in order that we may have an opportunity of showing how it will work. The record of the present Government with regard to measures which they have introduced seems to indicate that they are never going to give private Members an opportunity of discussing these most important questions.
I wish to point out to the Chancellor of the Exchequer that this is not an ordinary Amendment such as is usually made to postpone the first clause of a Bill. [Laughter.] Hon. Gentlemen smile, but the Chancellor of the Exchequer has just found fault with us, and spoken in a deprecating way of the withdrawal of the Instruction. The right hon. Gentleman does not seem to appreciate the fact that the Instruction was withdrawn to facilitate business and expedite the progress of the Bill. For very obvious reasons we hope to have an early answer on a very important question, namely, why has the Chancellor of the Exchequer thought it proper to introduce a Bill of this kind without preceding it by a Valuation Bill? That is the point which was mainly raised in the Instruction which has been withdrawn. There is considerable authority on the right hon. Gentleman's own side of the House why a tax on land values must be preceded by a valuation of that which is to be taxed. I am not aware that it has ever been suggested before by any responsible body—any body responsible either for Local Government, Imperial Government, or National Government—to impose a tax, and then ask a legislative assembly to decide on what form of value that tax is to be raised, without having vouchsafed the principles on which the taxation is to be based. We have had no such explanation, and we desire to give the right hon. Gentleman an opportunity of making it. The late Prime Minister, Sir Henry Campbell-Bannerman, speaking at Edinburgh on 5th October, 1907, on the Valuation Bill for Scotland, used these words: "It was preliminary to a rating measure, and an indispensable preliminary to it." Indispensable preliminary! I quite understand what the Chancellor of the Exchequer will probably reply to that. His answer will probably be that that is only because the rating authority have no power to make a valuation and that Parliament has. That is no moral ground to proceed upon. It is only saying that one robber is more powerful than another, if I may use that term without doing so in any offensive sense. Then Lord Shaw of Dunfermline, one of the greatest advocates on the Liberal side of taxation of this kind, used this expression: "Surely my hon. Friend's study of this subject must have convinced him that all the best authorities were agreed"—I am glad to see that the late Lord Advocate does not confine himself to rating—"that any rating or taxation must be pre- ceded by necessary preliminary inquiries in the shape of the ascertainment of land values." It is perfectly obvious that that is a necessary preliminary. I do think we are entitled to be told by the Government on what ground they have receded from the course which they themselves followed in regard to Scotland, which was to introduce a Valuation Bill, on which, presumably, they proposed to base rates and taxes. Why has the House been treated in one manner in one Session and in a totally different manner in another Session? I have honestly devoted a great many hours to find out what the final and total effects of this legislation will be, but I confess, though I have had some previous knowledge of the subject of land valuation, I am at a loss to know where it is going to lead to. It would have been of great assistance to us if we had had a Valuation Bill in the first place showing how the valuation was to be obtained, and who was to obtain it. Has any human being in any country ever heard of such a thing before as unearned increment? There is no foreign country that has anything approaching it in any degree. There is no form of taxation which has ever been proposed in any responsible assembly which really resembles the taxes we are now discussing. They are thrown at the House without explanation, notwithstanding the statement made by the hon. and right hon. Gentlemen on the other side of the House that valuation must precede taxation of land values.
A great many of the questions to which the hon. and gallant Member is alluding are not matters relevant to the discussion of the postponement of the clause. He really must confine himself to the question of postponement.
I think a great deal of time and trouble would have been avoided if we had had an explanation. I apologise for straying from the subject, if I have done so. I only wish to say that our reason for proposing the postponement of the clause is not for the mere waste of time; it is with the object of getting an explanation from the Chancellor of the Exchequer why he has not preceded his proposals for taxation by a measure to get a valuation of the land on which the taxation is to be imposed. If he will give us such an explanation I think it will facilitate business.
I shall he happy to give any explanation I can within the rules of order, but the hon. and gallant Gentleman is perfectly well aware that it would not be possible on a proposal to postpone Clause 1 to give the explanation he asks. One of the difficulties of complying with his request now is that it would not be strictly in order, and there is nothing to justify an absolutely irrelevant debate. It will be absolutely impossible to get through the business before us unless we confine our Debate to the actual proposals before the House. It is not through any discourtesy to any of my colleagues that I do not answer the questions asked, but I must really refuse to answer questions not strictly relevant to the Motion before the House. Take the very question which has been put just now; I mean the suggestion that you are not to discuss the question whether the valuation ought to be taken before the tax is levied. That is raised by a Motion later on by, I think, the hon. Member for Totnes (Mr. F. Mildmay), for a postponement of the tax until the year 1911. I suppose the reason for that is that they want the valuation made first. This Motion has nothing to do with it. The Parliamentary effect of this Motion would not be to postpone the tax. It would simply postpone this clause till the end of the Bill. Really, that is a preposterous proposal. You put Clause 1 at the end of the Bill after the Tobacco Tax and the Whisky Tax. The Noble Lord (Lord Robert Cecil) is a lawyer, and a very distinguished lawyer. Does the Noble Lord really mean to say that the valuation proposal ought to be at the beginning of the Bill, and that the tax should come after?
I endeavoured to submit that the whole of the Land Taxes ought to be postponed to the end of the Bill. I was not thinking at the moment whether the valuation clauses should be taken first.
I should not have thought that any Parliamentarian would have been justified in raising that issue upon this particular Motion, for the simple reason that it involves some of these, clauses, 1, 2, 3, and so on. The real method of raising that surely is on the Instruction which is down later on. For that reason I suggest that this question of the postponement of the valuation ought to come when we come to the Motion of the hon. Member for Totnes. I submit that we cannot discuss in the course of Committee the same Motion twice over. If the Committee chooses to take a decision on one particular Amendment, certainly I submit that it cannot take a second decision on the same point, which is practically asking the Committee to reopen its decision. When that is done I am perfectly prepared with my answer, and it is not through any desire not to answer that I am not giving it now. We have heard four Members from the Front Bench opposite on this matter, and I submit that we might now go on to discuss the very questions put to us by the hon. and gallant Gentleman. There is not a single question he put to me that is not raised by specific Amendments later on.
It is quite true there has been a considerable amount of discussion on this point, and I am afraid, unless we can persuade the Government to pay a little more attention to what is being said, that still more of us will have to trouble the Committee. The right hon. Gentleman must realise from what has already taken place before we entered on this discussion at all that my Friends on this side of the House are at least as anxious to get to grips with the big questions raised by this Bill as is the Chancellor of the Exchequer himself. It is for that reason that we took off those Instructions to the Committee to which he has alluded and which would have acted as dilatory Motions, preventing our getting to the real points of the measure. But the Motion that we have now made is one of real substance and importance. It does not raise, in my opinion at any rate, the same questions as the Chancellor of the Exchequer was suggesting would be raised by the Amendments, I think, standing in the name of my hon. Friend the Member for Totnes—that is, the question whether the tax should come into force anywhere or on any piece of land until the valuation of the United Kingdom was completed. That is not the question we are raising now. It only shows how little attention the right hon. Gentleman has been paying to what was said by some of us that he should think that that is the question which we are now asking the Committee to decide. He complains that we are dealing differently with this Finance Bill from what has been customary in the case of other Finance Bills, but he must remember that this Finance Bill is quite different from anything we have been accustomed to. He says it has always been customary to put the tax clauses of a Finance Bill first. Yes, because the tax clauses of a Finance Bill have always been the most important clauses of that Bill, and the taxes have been imposed on other things which were well known, which were already in existence, which were familiar to the House and the country and everybody concerned. The whole of that is different under the present proposals. What he is asking us to do is to proceed at once to impose a tax upon something, and he states what the rate of tax should be, and asks us to leave open the discussion as to what the taxed article is. It is impossible for the Committee reasonably to consider the amount of the tax raised in Clause 1 without knowing what it is that a tax is going to be imposed upon.
Look at the drafting of the Bill. I am not complaining of the draftsman. I know the Government have as skilled a draftsman at, their service as any Government have ever been fortunate enough to possess. I think that the draftsman's difficulties and failures resulted not from lack of skill in draftsmanship, but from lack of clear thinking on the part of the Ministers who have given him instructions. I am not, therefore, criticising in any narrow or capricious spirit the draftsmanship of the Bill. But look how the Bill stands. First we are asked to discuss Clause 1—the imposition of the tax on increment value. When we get to the tax on spirits and whisky the Chancellor asks us to discuss the imposition of a tax on an object which is already defined, and which everyone knows. I say this in spite of the fact that a Commission has been appointed for the purpose of inquiring into the question what whisky is, because for the purpose of taxation we all know what it is. But in the case of this new tax the Government have to say what this new tax is. They begin to say in Clause 2 "the increment value of any land shall be deemed to be the amount (if any) by which the site value of the land on the occasion on which increment value becomes due exceeds the original site value of the land." That does not tell me any further as to what site value is. It is not a thing known to our taxing laws or to any laws at all. You have to proceed accordingly to define in Clause 2 what site value is, and for a further definition you are referred to Clause 14 and subsequent clauses, and whenever any difficult question is raised in regard to these differences it is referred to a tribunal, mysteriously called a Commission; and in order to know who they are you have to refer to the very last clause of the whole Bill. Is it reasonable to ask the Committee to proceed in this way along those lines and by such methods? I say it is not. I say that before the Committee can give any reasoned answer to the question whether a tax should be imposed, and, if so, what the amount of the tax should be, it is necessary to know exactly what is the article to be taxed. It is in order to get the subject matter of the taxation and to define that on which the tax is to be imposed that I support the Motion which my hon. Friend has made for the postponement of Clause 1. I hope I have made clear the point on which we wish to fix the attention of the Chancellor of the Exchequer. If I have been successful where better and more able men have failed in drawing his attention to the real points, he may, perhaps, give us some satisfaction upon it. I conclude by emphasising what I have already said, that this Motion is in no sense a dilatory Motion. We do not move it to delay progress on the Bill, but we consider that it is essential for a proper discussion of the first clause, that the definition of the value on which the tax is to be charged should precede the imposition of the tax itself in the drafting of the Bill, and that is why we have had this discussion.
It seems to me very difficult indeed to discuss this question of the postponement of the clause without referring to the merits of the tax which are under consideration. I know quite well that that is your ruling, and, therefore, it is impossible now to consider it, but I may say how completely I agree with the words which have fallen from the right hon. Gentleman the Member for East Worcestershire (Mr. Austen Chamberlain) with regard to the impossibility of discussing Clause 1 unless we have some opportunity of considering some of the clauses that follow. It has been very clearly pointed out that this idea of an increment value duty of land is something perfectly new. It is perfectly new to us in this country; there is nothing similar to it in any other country so far as I know.
Therefore, we know not where to look in order to discover what this really means. We turn naturally to Clause 2, in order that we may form some idea as to the nature of the subject on which this tax is to be levied. There seems to be an absolute divergence between the two clauses. The first clause is far more general than the second. The first clause calls upon us to assent to a tax being levied on increment value in land, agricultural land, urban land, or any other land. When this matter was under discussion we were generally told that the reason for this taxation was because land in the immediate neighbourhood of large cities had considerably increased in value without any effort on the part of the owners. No indication of that is given in this first clause. When we try to find out what the increment value is we turn to the second clause, where a new idea altogether is introduced as to the increment value of land.
These remarks are not germane to the questions under discussion. The hon. Member must confine himself to the question of postponement.
I was trying to point out the difference between the two clauses in order that we might have some definition of increment value, which is in Clause 2. Therefore, I venture to think we should have Clause 2 discussed before Clause 1. If we did so we should be in a far better position to discuss the matter. If we come to a decision on Clause 1 agreeing to impose a tax generally on any land, and if Clause 2 afterwards did not pass, we should be imposing a very different tax from the taxation which I understand is intended. Therefore, I cannot help thinking that there would be some real advantage in postponing Clause 1.
rose in his place, and claimed to move: "That the Question be now put."
Question put: "That the Question be now put."
The Committee divided: Ayes, 242; Noes, 94.
Bowerman, C. W. Herbert, Col. Sir Ivor (Mon., S.) Rainy, A. Rolland Brunner, J. F. L. (Lance., Leigh) Herbert, T. Arnold (Wycombe) Raphael, Herbert H. Bryce, J. Annan Higham, John Sharp Rea, Russell (Gloucester) Burns, Rt. Hon. John Hobart, Sir Robert Rea, Walter Russell (Scarborough) Burnyeat, W. J. D. Hobhouse, Charles E. H. Rees, J. D. Burt, Rt. Hon. Thomas Hodge, John Richards, T. F. (Wolverhampton, W.) Buxton, Rt. Hon. Sydney Charles Holland, Sir William Henry Roberts, Charles H. (Lincoln) Byles, William Pollard Hooper, A. G. Roberts, G. H. (Norwich) Cameron, Robert Horniman, Emslie John Robertson, Sir G. Scott (Bradford) Carr-Gomm, H. W. Horridge, Thomas Gardner Robertson, J. M. (Tyneside) Cawley, Sir Frederick Howard, Hon. Geoffrey Robinson, S. Chance, Frederick William Jackson, R. S. Robson, Sir William Snowdon Cheetham, John Frederick Johnson, W. (Nuneaton) Rogers, F. E. Newman Cherry, Rt. Han. R. R. Jones, Sir D. Brynmor (Swansea) Rose, Charles Day Churchill, Rt. Hon. Winston S. Jones, Leif (Appleby Rowlands, J. Cleland, J. W. Jones, William (Carnarvonshire) Runciman, Rt. Hon. Walter Clough, William Jowett, F. W. Russell, Rt. Hon. T. W. Clynes, J. R. Kekewich, Sir George Rutherford, V. H. (Brentford) Cobbold, Felix Thornley Kelley, George D. Samuel, Rt. Hon. H. L. (Cleveland) Collins, Stephen (Lambeth) King, Alfred John (Knutsford) Scarisbrick, T. T. L. Collins, Sir Wm. J. (St. Pancras, W.) Laidlaw, Robert Seely, Colonel Cooper, G. J. Lamb, Edmund G. (Leominster) Shackleton, David James Corbett, C. H. (Sussex, E. Grinstead) Lambert George Sherwell, Arthur James Cornwall, Sir Edwin A. Lamont, Norman Shipman, Dr. John G. Cotton, Sir H. J. S. Layland-Barrett, Sir Francis Simon, John Allsebrook Crooks, William Lea, Hugh Cecil (St. Pancras, E.) Smeaton, Donald Mackenzie Crosfield, A. H Leese, Sir Joseph F. (Accrington) Snowden, P. Crossley, William J. Lehmann, R. C. Soames, Arthur Wellesley Davies, Ellis William (Eifion) Lever, W. H. (Cheshire, Wirral) Scares, Ernest J. Davies, M. Vaughan- (Cardigan) Levy, Sir Maurice Spicer, Sir Albert Davies, Timothy (Fulham) Lewis, John Herbert Stanley, Hon. A. Lyulph (Cheshire) Dewar, Arthur (Edinburgh, S.) Lloyd-George, Rt. Hon. David Steadman, W. C. Dewar, Sir J. A. (Inverness-sh.) Luttrell, Hugh Fownes Strachey, Sir Edward Dickinson, W. H. (St. Pancras, N.) Lyell, Charles Henry Straus, B. S. (Mile End) Dickson-Poynder, Sir John P. Lynch, H. B. Strauss, E. A. (Abingdon) Dilke, Rt. Hon. Sir Charles Macdonald, J. R. (Leicester) Taylor, John W. (Durham) Dobson, Thomas W. Macdonald, J. M. (Falkirk Burghs) Tennant, H. J. (Berwickshire) Duncan, C. (Barrow-in-Furness) Maclean, Donald Thomas, Abel (Carmarthen, E.) Duncan, J. Hastings (York, Otley) M'Laren, H. D. (Stafford, W.) Thomas, Sir A. (Glamorgan, E.) Donne, Major E. Martin (Walsall) M'Micking, Major G. Thorne, William (West Ham) Edwards, Sir Francis (Radnor) Maddison, Frederick Tornkinson, James Ellis, Rt. Hon. John Edward Mallet, Charles E. Toulmin, George Essex, R. W. Markham, Arthur Basil Trevelyan, Charles Philips Esslemont, George Birnie Marnham, F J. Ure, Rt. Hon. Alexander Evans, Sir S. T. Massie, J. Verney, F. W. Everett, R. Lacey Masterman, C. F. G. Vivian, Henry Faber, G. H. (Boston) Menzies, Walter Walters, John Tudor Falconer, J. Micklem, Nathaniel Wardle, George J. Fenwick, Charles Molteno, Percy Alport- Waring, Walter Ferguson, R. C. Munro Mond, A. Wason, Rt. Hon. E. (Clackmannan) Foster, Rt. Hon. Sir Walter Morgan, J. Lloyd (Carmarthen) Wason, John Cathcart (Orkney) Freeman-Thomas, Freeman Morrell, Philip Waterlow, D. S. Fuller, John Michael F. Morton, Alpheus Cleophas Wedgwood, Josiah C. Fullerton, Hugh Murray, James (Aberdeen, E.) Weir, James Galloway Furness, Sir Christopher Myer, Horatio White, Sir George (Norfolk) Gibb, James (Harrow) Napier, T. B. White, J. Dundas (Dumbartonshire) Gladstone, Rt. Hon. Herbert John Nicholson, Charles N.(Doncaster) White, Sir Luke (York, E.R.) Glen-Coats, Sir T. (Renfrew, W.) Norman, Sir Henry Whitehead, Rowland Glover, Thomas Norton, Captain Cecil William Whitley, John Henry (Halifax) Goddard, Sir Daniel Ford Nuttall, Harry Wilkie, Alexander Gooch, George Peabody (Bath) O'Donnell, C. J. (Walworth) Williams, W. Llewelyn (Carmarthen) Greenwood, G. (Peterborough) O'Grady, J. Williams, A. Osmond (Merioneth) Griffith, Ellis J. Parker, James (Halifax) Williamson, A. Harcourt, Rt. Hon. L. (Rossendale) Partington, Oswald Wills, Arthur Walters Harcourt, Robert V. (Montrose) Pearce, Robert (Staffs., Leek) Wilson, John (Durham, Mid) Hardy, George A. (Suffolk) Pearce, William (Limehouse) Wilson, J. W. (Worcestershire, N.) Hart-Davies, T. Philipps, Owen C. (Pembroke) Wilson, P. W. (St. Pancras, S.) Harvey, W. E. (Derbyshire, N.E.) Pirie, Duncan V. Wilson, W. T. (Westhoughton) Harwood, George Pollard, Dr. G. H. Wood, T. M'Kinnon Haslam, Lewis (Monmouth) Ponsonby, Arthur A. W. H. Yoxall, James Henry Haworth, Arthur A. Price, C. E. (Edinburgh, Central) Hedges, A. Paget Price, Sir Robert J. (Norfolk, E.) TELLERS FOR THE AYES. —Mr.—Mr. Helme, Norval Watson Pullar, Sir Robert. Joseph Pease and the Master of Henry, Charles S. Radford, G. H. Elibank.
NOES. Acland-Hood, Rt. Hon. Sir Alex. F. Barrie, H. T. (Londonderry, N.) Butcher, Samuel Henry Anstruther-Gray, Major Beach, Hon. Michael Hugh Hicks Carlile, E. Hildred Arkwright, John Stanhope Beckett, Hon. Gervase Castlereagh, Viscount Baldwin, Stanley Bowles, G. Stewart Cave, George Balfour, Rt. Hon. A. J. (City, Lend.) Bridgeman, W. Clive Cecil. Evelyn (Aston Manor) Banbury, Sir Frederick George Bull, Sir William James Cecil, Lord R. (Marylebone, E.) Barnes, G. N. Burdett-Coutts, W. Chamberlain, Rt. Hon. J. A. (Worc'r.) Chaplin, Rt. Hon. Henry Lee, Arthur H. (Hants, Fareham) Ronaldshay, Earl of Cochrane, Hon. Thomas H. A. E. Lockwood, Rt. Hon. Lt.-Col. A. R. Ropner, Colonel Sir Robert Craig, Charles Curtis (Antrim, S.) Long, Rt. Hon. Walter (Dublin, S.) Rutherford, John (Lancashire) Craig, Captain James (Down, E.) Lonsdale, John Brownlee Rutherford, W. W. (Liverpool) Craik, Sir Henry Lowe, Sir Francis William Salter, Arthur Claveli Dixon-Hartland, Sir Fred. Dixon Lyttelton, Rt. Hon. Alfred Scott, Sir S. (Marylebone, W.) Douglas, Rt. Hon. A. Akers- Magnus, Sir Philip Smith, Abel H. (Hertford, East) Faber, Capt. W. V. (Hants, W.) Mason, James F. (Windsor) Smith, Hon. W. F. D. (Strand) Fell, Arthur Meysey-Thompson, E. C. Stanier, Beville Fletcher, J. S. Middlemore, John Throgmorton Starkey, John R. Foster, P. S. Mildmay, Francis Bingham Staveley-Hill, Henry (Staffordshire) Gardner, Ernest Morpeth, Viscount Talbot, Lord E. (Chichester) Gibbs, G. A. (Bristol, West) Morrison-Bell, Captain Thomson, W. Mitchell-(Lanark) Gretton, John Newdegate, F. A Thornton, Percy M. Guinness, W. E. (Bury St. Edmunds) Oddy, John James Tuke, Sir John Batty Haddock, George B. Pease, Herbert Pike (Darlington) Walrond, Hon. Lionel Hamilton, Marquess of Peel, Hon. W. R. W. Williams, Col. R. (Dorset, W.) Harris, Frederick Leverton Percy, Earl Winterton, Earl Harrison-Broadley, H. B. Powell, Sir Francis Sharp Wolff, Gustav Wilhelm Hay, Hon. Claude George Pretyman, E. G. Wortley, Rt. Hon. C. B. Stuart- Hill, Sir Clement Handles, Sir George Scurran Wyndham, Rt. Hon. George Hope, James Fitzalan (Sheffield) Rawlinson, John Frederick Peel Younger, George Joynson-Hicks, William Remnant, James Farquharson Kerry, Earl of Ridsdale, E. A. TELLERS FOR THE NOES.— ViscountViscount Kimber, Sir Henry Roberts, S. (Sheffield, Ecclesall) Valentia and Mr. H. W. Forster. Lambton, Hon. Frederick Wm.
Question put: "That Clause 1 be postponed."
Division No. 179.] AYES. [5.25 p.m. Acland-Hood, Rt. Hon. Sir Alex. F. Gibbs, G. A. (Bristol, West) Peel, Hon. W. R. W. Anstruther-Gray Major Gretton, John Percy, Earl Arkwright, John Stanhope Guinness, W. E. (Bury St. Edmunds) Powell, Sir Francis Sharp Ashley, W. W. Haddock, George B. Pretyman, E. G. Baldwin, Stanley Hamilton, Marquess of Randles, Sir John Scurrah Balfour, Rt. Hon. A. J. (City, Lond.) Hardy, Laurence (Kent, Ashford) Rawlinson, John Frederick Peel Banbury, Sir Frederick George Harris; Frederick Leverton Remnant, James Farquharson Barrie, H. T. (Londonderry, N.) Harrison-Broadley, H. B. Roberts, S. (Sheffield, Ecclesall) Beach, Hon. Michael Hugh Hicks Hay, Hon. Claude George Ronaldshay, Earl of Beckett, Hon. Gervase Heaton, John Henniker Bonner, Colonel Sir Robert Bowles, G. Stewart Hill, Sir Clement Rutherford, John (Lancashire) Bridgeman, W. Clive Hope, James Fitzalan (Sheffield) Rutherford, W. W. (Liverpool) Bull, Sir William James Joynson-Hicks, William Salter, Arthur Clavell Burdett-Coutts, W. Kennaway, Rt. Hon. Sir John H. Scott, Sir S. (Marylebone, W.) Butcher, Samuel Henry Kerry, Earl of Sheffield, Sir Berkeley George D. Carlile, E. Hildred Kimber, Sir Henry Smith, Abel H. (Hertford, East) Castlereagh, Viscount Lambton, Hon. Frederick William Stanier, Beville Cave, George Lee, Arthur H. (Hants, Fareham) Starkey, John R. Cecil, Evelyn (Aston Manor) Lockwood, Rt. Hon. Lt.-Col. A. R. Staveley-Hill, Henry (Staffordshire) Cecil, Lord R. (Marylebone, E.) Long, Rt. Hon. Walter (Dublin, S.) Talbot, Lord E. (Chichester) Chamberlain, Rt. Hon. J. A. (Worc'r.) Lansdale, John Brownlee Thomson, W. Mitchell-(Lanark) Chaplin, Rt. Hon. Henry Lowe, Sir Francis William Thornton, Percy M. Cochrane, Hon. Thomas H. A. E. Lyttelton, Rt. Hon. Alfred Tuke, Sir John Batty Craig, Charles Curtis (Antrim, S.) Magnus, Sir Philip Walrond, Hon. Lionel Craig, Captain James (Down, E.) Mason, James F. (Windsor) Williams, Col. R. (Dorset, W.) Craik, Sir Henry Meysey-Thompson, E. C. Winterton, Earl Cross, Alexander Middlemore, John Throgmorton Wolff, Gustav Wilhelm Dixon-Hartland, Sir Fred. Dixon Mildmay, Francis Bingham Wortley, Rt. Hon. C. B. Stuart- Douglas, Rt. Hon. A. Akers- Morpeth, Viscount Wyndham, Rt. Hon. George Faber, Capt. W. V. (Hants, W.) Morrison-Bell, Captain Younger, George Fell, Arthur Newdegate, F. A. Fletcher, J. S. Oddy John James TELLERS FOR THE AYES.— ViscountViscount Foster, P. S. Pease, Herbert Pike (Darlington) Valentia and Mr. H. W. Forster. Gardner, Ernest
NOES. Abraham, W. (Cork, N. E.) Barlow, Percy (Bedford) Bowerman, C. W. Agar-Robartes, Hon. T. C. R. Barnes, G. H. Brunner, J. F. L. (Lancs., Leigh) Alden, Percy Barran, Sir John Nicholson Bryce, J. Annan Ambrose, Robert Beauchamp, E. Buckmaster, Stanley O. Armitage, R. Beaumont, Hon. Hubert Burke, E. Haviland- Ashton, Thomas Gair Beck, A. Cecil Burns, Rt. Hon. John Asquith, Rt. Hon. Herbert Henry Bellairs, Carlyon Burnyeat, W. J. D. Astbury, John Meir Benn, W. (Tower Hamlets, St. Geo.) Burt, Rt. Hon. Thomas Atherley-Jones, L. Bennett, E. N. Buxton, Rt. Hon. Sydney Charles Baker, Sir John (Portsmouth) Bethell, Sir J. H. (Essex, Romford) Bytes, William Pollard Baker, Joseph A. (Finsbury, E.) Bethell, T. R. (Essex, Maldon) Cameron, Robert Balfour, Robert (Lanark) Birrell, Rt. Hon. Augustine Carr-Gomm, H. W. Baring, Godfrey (Isle of Wight) Black, Arthur W. Cawley, Sir Frederick Barker, Sir John Boland, John Chance, Frederick W Barlow, Sir John E. (Somerset) Boulton, A. C. F. Cheetham, John Frederick
The Committee divided: Ayes, 97; Noes, 294.
Cherry, Rt. Hon. R. R. Horridge, Thomas Gardner Price, Sir Robert J. (Norfolk, E.) Churchill, Rt. Hon. Winston S. Howard, Hon. Geoffrey Puller, Sir Robert Clancy, John Joseph Jackson, R. S. Radford, G. H. Cleland, J. W Johnson, W. (Nuneaton) Rainy, A. Rolland Clough, William Jones, Sir D. Brynmor (Swansea) Raphael, Herbert H. Clynes, J. R. Jones, Leif (Appleby) Rea, Russell (Gloucester) Cobbold, Felix Thornley Jones, William (Carnarvonshire) Rea, Walter Russell (Scarborough) Collins, Stephen (Lambeth) Jewett, F. W. Reddy, M. Collins, Sir Wm. J. (St. Pancras, W.) Joyce, Michael Redmond, John E. (Waterford) Condon, Thomas Joseph Kavanagh, Walter M. Redmond, William (Clare) Cooper, G. J. Kekewich, Sir George Rees, J. D. Corbett, C. H. (Sussex, E. Grinstead) Kelley, George D. Richards, T. F. (Wolverhampton, W.) Cornwall, Sir Edwin A. Kennedy, Vincent Paul Ridsdale, E. A. Cotton, Sir H. J. S. Kettle, Thomas Michael Roberts, Charles H. (Lincoln) Crean, Eugene Kilbride, Denis Roberts, G. H. (Norwich) Crooks, William King, Alfred John (Knutsford) Robertson, Sir G. Scott (Bradford) Crosfield, A. H. Laidlaw, Robert Robertson, J. M. (Tyneside) Crossley, William J. Lamb, Edmund G. (Leominster) Robinson, S. Cullinan, J. Lambert, George Robson, Sir William Snowdon Davies, Ellis William (Eifiion) Lamont, Norman Roche, Augustine (Cork) Davies, M. Vaughan-(Cardigan) Layland-Barrett, Sir Francis Roche, John (Galway, East) Davies, Timothy (Fulham) Lea, Hugh Cecil (St. Pancras, E.) Rogers, F. E. Newman Delany, William Leese, Sir Joseph F. (Accrington) Rose, Charles Day Dewar, Arthur (Edinburgh, S.) Lehmann, R. C. Rowlands, J. Dewar, Sir J. A. (Inverness-sh.) Lever, W. H. (Cheshire, Wirral) Runciman, Rt. Hon. Walter Dickinson, W. H. (St. Pancras, N.) Levy, Sir Maurice Russell, Rt. Hon. T. W. Dickson-Poynder, Sir John P. Lewis, John Herbert Rutherford, V. H. (Brentford) Dilke, Rt. Hon. Sir Charles Lloyd-George, Rt. Hon. David Samuel, Rt. Hon. H. L. (Cleveland) Dobson, Thomas W. London, T. Scarisbrick, T. T. L. Donelan, Captain A. Luttrell, Hugh Fownes Seely, Colonel Duncan, C. (Barrow-in-Furness) Lyell, Charles Henry Shackleton, David James Duncan, J. Hastings (York, Otley) Lynch, H. B. Sherwell, Arthur James Dunne, Major E. Martin (Walsall) Macdonald, J. R. (Leicester) Shipman, Dr. John G. Edwards, Sir Francis (Radnor) Macdonald, J. M. (Falkirk Burghs) Simon, John Allsebrook Ellis, Rt. Hon. John Edward Maclean, Donald Smeaton, Donald Mackenzie Erskine, David C. MacNeill, John Gordon Swift Snowden, P. Essex, R. W. MacVeagh, Jeremiah (Down, S.) Soames, Arthur Wellesley Esslemont, George Birnie MacVeigh, Charles (Donegal, E.) Soares, Ernest J. Evans, Sir S. T. M'Laren, H. D. (Stafford, W.) Spicer, Sir Albert Everett, R. Lacey M'Micking. Major G. Stanley, Hon. A. Lyulph (Cheshire) Faber, G. H. (Boston) Maddison, Frederick Steadman, W. C. Falconer, J. Mallet, Charles E. Strachey, Sir Edward Fenwick, Charles Markham, Arthur Basil Straus, B. S. (Mile End) Ferguson, R. C. Munro Marnham, F. J. Strauss, E. A. (Abingdon) Ffrench, Peter Mason, A. E. W. (Coventry) Taylor, John W. (Durham) Flynn, James Christopher Massie, J. Tennant, H. J. (Berwickshire) foster, Rt. Hon. Sir Walter Masterman, C. F. G. Thomas, Abel (Carmarthen, E.) Freeman-Thomas, Freeman Meehan, Francis E. (Leitrim, N.) Thomas, Sir A. (Glamorgan, E.) Fuller, John Michael F. Menzies, Walter Thorne, William (West Ham) Fullerton, Hugh Micklem, Nathaniel Tomkinson, James Furness, Sir Christopher Molteno, Percy Alport Toulmin, George Gibb, James (Harrow) Mond, A. Trevelyan, Charles Philips Ginnell, L. Money, L. G. Chiozza Ure, Rt. Hon. Alexander Gladstone, Rt. Hon. Herbert John Mooney, J. J Verney, F. W Glen-Coats, Sir T. (Renfrew, W.) Morgan, J. Lloyd (Carmarthen) Vivian, Henry Glover, Thomas Morrell, Philip Walters, John Tudor Goddard, Sir Daniel Ford Morton, Alpheus Cleophas Wardle, George J. Gooch, Gorge Peabody (Bath) Murray, James (Aberdeen, E.) Waring, Walter Greenwood, G. (Peterborough) Myer, Horatio Wason, Rt. Hon. E. (Clackmannan) Griffith, Ellis J. Nannetti, Joseph P. Wason, John Cathcart (Orkney) Gwynn, Stephen Lucius Napier, T. B. Waterlow, D S Harcourt, Rt Hon. Lewis (Rossendale) Nicholson, Charles N. (Doncaster) Wedgwood, Josiah C. Harcourt, Robert V. (Montrose) Nolan, Joseph Weir, James Galloway Hardy, George A. (Suffolk) Norman, Sir Henry White, Sir George (Norfolk) Hart-Davies, T. Norton, Captain Cecil William White, J. Dundas (Dumbartonshire) Harvey, W. E. (Derbyshire, N. E.) Nuttall, Harry White, Sir Luke (York, ER.) Harwood, George O'Brien, Patrick (Kilkenny) White, Patrick (Meath, North) Haslam, Lewis (Monmouth) O'Connor, James (Wicklow, W.) Whitehead, Rowland Haworth, Arthur A. O'Donnell, C. J. (Walworth) Whitley, John Henry (Halifax) Hayden, John Patrick O'Grady, 1 Wilkie, Alexander Hedges, A. Paget O'Kelly, Conor (Mayo, N.) Williams, W. Llewelyn (Carmarthen) Helme, Norval Watson O'Shaughnessy, P. J. Williams, A. Osmond (Merioneth) Henderson, J. McD. (Aberdeen, W.) Parker, James (Halifax) Williamson, A Henry, Charles S. Partington, Oswald Wills, Arthur Walters Herbert, Col. Sir Ivor (Mon. S.) Paulton, James Mellor Wilson, John (Durham, Mid) Herbert, T. Arnold (Wycombe) Pearce, Robert (Staffs, Leek) Wilson, J. W. (Worcestershire, N.) Higham, John Sharp Pearce, William (Limehouse) Wilson, P. W. (St. Pancras, S.) Hobart, Sir Robert Philipps, Owen C. (Pembroke) Wilson, W. T. (Westhoughton) Hobhouse, Charles E. H. Philips, John (Longford, S.) Wood, T. M'Kinnon Hodge, John Pixie, Duncan V. Yoxall, James Henry Hogan, Michael Pollard, Dr. G. H. Holland, Sir William Henry Ponsonby, Arthur A. W. H. TELLERS FOR THE NOES. —Mr.—Mr. Hooper, A. G. Power, Patrick Joseph Joseph Pease and the Master of Horniman, Emslie John Price, C. E. (Edinburgh, Central) Elibank.
The Amendment standing in the name of the right hon. Gentleman (Mr. Chaplain) is not in the right place, and should come after the word "land" in line 17. The Amendment in the name of the Noble Lord the Member for Thirsk (Viscount Helmsley) is best raised by an Amendment at the end of the clause. The Amendment I refer to is in the name of the hon. Member for London University (Sir P. Magnus), and seems to me to raise the point in the best place and form. The Amendment in the name of the hon. Member for Blackpool (Mr. Ashley) is also in the wrong place. The Amendment of the hon. Member for Aberdeen University (Sir Henry Craik) should wait until after the word "land." The Amendment of the hon. Member for East Tyrone (Mr. Kettle) is too vague. The effect on Ireland of this Bill can be raised in a new clause at the end of the Bill, or raised by way of Amendment on the specific proposals in the Government clauses, but not in this form. The Amendment of the hon. Member for York proposing to leave out sub-section 1 is not necessary, as there is really no sub-section 1. It is a printer's mistake. The Amendment in the name of the hon. Member for Edgbaston (Sir F. Lowe) is too indefinite.
Are we not entitled to move to omit sub-section 1? It is a Motion which is habitually made on Bills in Committee.
On a point of order—
Sub-section 1 which is put in will be removed without the Committee doing it. The Amendment of the hon. Member for Edgbaston is too indefinite. He will have to get rid of the valuation proposal in the Bill before he can make a proposal on those lines. Even then it would have to be more definite.
I rise to ask whether if I make my Amendment a little more definite It will be in order, and, instead, insert "as Parliament may hereafter determine, or until a complete valuation of the land in the United Kingdom has been made." Would it then be in order?
The proper time to make that proposal is after the valuation proposals. I do not mean to say that the substance is out of order.
May I, with great respect, ask upon what grounds the Amendment which stands in my name has been ruled out. The Bill subjects every kind of land to Increment Duty. My object is to exempt agricultural land. Therefore, it appears to me to be the natural place to begin with the Bill, by saying "excepting all agricultural land." That is a form in which a Bill is often drawn. I certainly was under the impression, subject to considerable expert opinion, that the Amendment would be in perfect order according to all precedent.
I think it will after the word "land." We must first of all get in that we are going to have taxes in some form on land before exemptions can be made; that is, if there are any.
The word "land" occurs in line three and in line 17, and where, then, would the Amendment come in?
An Amendment like it will be raised by the word "urban" being proposed before "land."
I rise to move the Amendment—
On a point of order, did you not rule that my Amendment ought to be moved after the word "land," and therefore do I not come before the hon. Member?
I said that the hon. Member's Amendment should be moved after the word "Act." The hon. Member for Totnes (Mr. Mildmay) has a previous Amendment down. I should say he must put in a day and month, otherwise it is in order. Therefore I call on the hon. Baronet (Sir F. Banbury) to move the Amendment of the hon. Member for Totnes.
Is it not in order before we impose these taxes to provide to insert the words "that there shall be this general valuation of the United Kingdom before the tax comes into force," that that should be a condition precedent to their imposition.
The Amendment of the hon. Member is too indefinite in its present form. I think also it ought to wait until the valuation clause. It can be raised then, and that seems to me to be the proper time.
May I respect fully call your attention to the fact that it was just because we felt this difficulty we made a Motion, which came to a sudden end, to postpone this clause until we reached the valuation clause. The Government decided, and the majority of the House supported them, that we were to proceed with this clause long before we could enter on the valuation clause at all. I submit, under those circumstances, whatever may be your opinion as to the expediency or otherwise of our moving this Amendment on the valuation clauses, that we are clearly entitled to raise the question the first moment we can, and to take action, which is being forced on us by the action of His Majesty's Government.
On the point of order, and in reply to what has been said, I may state that the same issue can be raised exactly on the Amendment which the hon. Baronet the Member for the City of London (Sir F. Banbury) proposes to move.
My point is that we should have a valuation before this tax is imposed.
I have given my rulling, and as has just been stated, the same point can be raised on the Amendment about to be moved.
As other hon. Gentlemen have urged why their Amendments should not be ruled out, I ventured to mention as to mine. I understood you to rule my Amendment out of order on the ground that it is too vague. What I submit is this: that so far as Ireland is concerned the guiding principle of every Finance Bill ought to be the provisions of the Act of Union. This Amendment will be followed by consequential Amendments. The really important point which I should like to mention is this: whether we on these benches are not entitled to endeavour to have words inserted at the very beginning which will give expression to the general principle upon which we shall found subsequent Amendments. I would also like to know if you adhere to your ruling with regard to this particular Amendment, whether you will extend the same ruling to every subsequent occasion upon which we endeavour to introduce a reference, a differentiating reference, to the Act of Union on particular clauses? I submit that you ought not to persist in that ruling or adhere to it.
I do not know whether the hon. Member was here when I gave my ruling.
I was.
I said that Amendments dealing with the case of Ireland could be raised on each specific proposal for taxation, or a new clause could be moved at the end of the Bill dealing with it in a more general way. It cannot be dealt with in the way the hon. Member proposes here.
moved, after the words "Part of this Act" (Clause 1), to insert "on and after the 31st day of December, 1911." The object of the Amendment is extremely clear. We are about to impose a tax of which no one in this House has had the slightest experience, a tax which will cause great and unnecessary hardships to the people concerned, and it is necessary, before it is imposed, that we should make provision for raising and levying the tax. This Bill will probably became law some time in October, and if the tax becomes leviable as soon as the Bill receives the Royal Assent, it will be absolutely impossible in the time to arrange for all the necessary machinery. The right hon. Gentleman might say that he was desirous of obtaining the revenue, and that it was absolutely necessary that the tax should not be postponed, because otherwise he could not carry on the affairs of the country. But that is not the case, as the proceeds of the tax will be very small, and there is really no necessity, from the financial point of view, why it should be levied at once. If the Amendment were accepted there would be an opportunity to set up the machinery in a careful and proper manner. If you attempt to do a thing in a hurry, you do it either extremely badly or in a very expensive manner. The right hon. Gentleman, like all Chancellors of the Exchequer, has a great love of economy; he has no desire to spend money if he can possibly avoid it. His idea is to keep his rapacious colleagues and hon. Members behind him in order so far as the expenditure of money is concerned. Let him set an excellent example by accepting this Amendment, thereby showing that he is desirous of arranging the machinery in connection with, this tax on as economical and careful a basis as possible. When the Scottish Valuation Bill was introduced, and a criticism was attempted on the ground that the tax ought to have been first proposed, it was held by the Member of the Government in charge of the Bill that that was not a sound argument, and that it was necessary, first of all, to have a Valuation Bill. What I propose to-day is to provide means by which the machinery shall be set up before the tax is imposed. I trust that the right hon. Gentleman will commence the Committee stage by showing that spirit of urbanity and courtesy towards opponents about which he spoke a little while ago. He cannot have a better opportunity for so doing than in accepting this simple and just Amendment, because he would then show that he was really desirous of meeting the bad points in the Bill. The Amendment will do no harm; it will not interfere with the Bill; and it will not cause the loss of any money. ["Oh."] At any rate, there will be practically no loss, because, when one is talking about 16 millions of money, half a million for one year is a small item, especially when it is remembered that the Amendment would save a considerable amount of expense by enabling the machinery to be arranged in an economical manner. The right hon. Gentleman referred to the proceedings on the Education Bill. I have no desire to discuss this Bill in any bitter manner, although we have to deal with a new tax and a new method of proceeding. But we shall not follow the example of the right hon. Gentlemen opposite, and leave the House in a body, as they did when the Education Bill was under discussion. We shall remain in the House, and if the right hon. Gentleman is able to convert us we shall not persist in our Amendments. I do not think, however, the right hon. Gentleman will succeed in doing that. I beg to move.
Question proposed: " That those words be there inserted."
In seconding the proposal of my hon. Friend, I would appeal to the well-known common-sense of the Chancellor of the Exchequer to meet this Amendment in a reasonable and conciliatory spirit. Unless some such Amendment is passed there will be placed upon owners of land an obligation which it will be absolutely impossible for them to carry out. It is a physical impossibility for an owner of land to make the necessary returns within the time laid down. In the course of his Budget statement the Chancellor of the Exchequer, when speaking about these various new burdens to be placed on land, said:— land at the present moment, without all the buildings on it? I am in the fortunate, or unfortunate position—whichever it may be considered—of owning a certain amount of land. I confess I personally am quite unable to arrive at any conclusion as to what the site value of this land is, in view of what I or my predecessors have done to it; nor could I state the prairie value of that property. I do not know, nor do I think anybody does. Hon. Gentlemen opposite can answer us: "Oh, if you cannot do it, employ a capable surveyor, a man well versed in land survey." If there was one or half-a-dozen estates, to be valued in this way, no doubt that could be done; but will any hon. Member get up and say that there are enough surveying firms in the United Kingdom to survey the whole of the United Kingdom within six weeks after the passing of this Act? It is physically impossible. I therefore do ask the Chancellor of the Exchequer—whom I am sorry to see is not in his place—to consider the points which I have put before him. I would point out, too, that if the Government do meet what I consider a reasonable Amendment they would not lose very much by it. The Chancellor of the Exchequer expects to get by this tax £50,000 this year. This Amendment seeks to put off the imposition of this tax till 31st December, 1911. I do think, for a matter of £200,000 or £300,000, the Government might see their way to give a little more liberty and elbow-room to the wretched land-owner, whom they are going to tax in every way they can. With the best will in the world the land-owner is willing to share the burden of State, but it is really making the thing an impossibility to ask him to do what is asked under this Bill. Remember, if he gives a return which subsequently is found to be inaccurate, hon. Members opposite and their friends in the country will not spare the landowner; but it will be stated that he has tried to evade these unjust duties which are placed upon him. But the inaccurate return will not be his fault, because it was impossible to give an accurate one.
There is another aspect of the Question. That is, that surely it is reasonable to give a more lengthened interval between the original valuation of the site value and the first time this increment value will be charged upon it. If you charge increment value at the beginning of next year, and the original site value is only ascertained at the end of this year, the increment value cannot be the real change of value, for the land does not change as fast as that in three, four, or six months. If it were owing to a glut of money, or the money market being tight, or some local consideration which has nothing to do with the general aspect, the value may go up, and so a man will be taxed upon the incidental raising of the value of the land, and not the real. This, I think, is not the intention of the Government.
As one who has been engaged in the operation which the Government requires to be taken upon the present occasion, perhaps it may be worth while to give my experience of the matter. Some 13 or 14 years ago the London County Council contemplated an improvement in the Tower Bridge district. In a certain area of this improvement, they alleged, betterment would ensue to a great many owners. They promoted a Bill which required a valuation to be made of the so-called initial value of the hereditaments in the area which they imagined would be bettered. Their proposal was that the valuation should be on both the total property and on the site value of the property. Precisely the same problem is presented for consideration here. I was engaged for the County Council in that particular inquiry—in the inquiry, that is to say, as to what the initial valuation of the whole of the property and the site value of the property was. This valuation took place before one of the ablest and experienced valuers in the City of London. This experience conclusively proved that that which my hon. Friend has been saying is perfectly and absolutely true; that the elaborate, or rather novel, valuation of the kind contemplated by the Government of the site value, if undertaken within a short time from the present, will be an absolutely good test. The initial valuation in which I was engaged, made by a skilled man who had been 30 or 40 years in the business, took him many weeks to make. It was so costly that the second valuation, out of which the betterment tax was to arise, never took place at all. In other words, this wonderful scheme, undertaken, no doubt, in absolutely good faith by the County Council many years ago, showed that the cost of obtaining an initial valuation was so great that it debarred the County Council from going on with the second valuation. I think there was a. Manchester Bill which had somewhat the same result. What I wish to point out to the House, and to the Government, is that my Friends behind me have really understated the case, because if a very experienced valuer, engaged for a specific purpose, could not do the work in many, many days, how is it supposed that over the whole of the United Kingdom, with a new subject, with every valuer engaged, that within 30 days anything but a most grotesque result will accrue? It is certain that the Government have not appreciated this position. It would be impossible for the work to be done, even if you had the whole of the profession of the country engaged upon it. Then you must recollect that these skilled gentlemen will be engaged in valuing ungotten minerals, undeveloped land, and in making valuations, as the hon. Member for Kingston (Mr. Cave) pointed out, when leases fall in or are granted, as well as when deaths take place. All these give continuous and arduous work to commercial valuers. Under these circumstances I do ask the Government to do justice, and consider how those concerned can possibly do the whole of this gigantic task, firstly without enormous cost, and secondly within the 30 days allotted.
I must apologise for the absence of my right hon. Friend the Chancellor of the Exchequer, who is taking a little rest prior to engaging in this arduous Debate. Both the hon. Members who have spoken last have misread slightly in one very important particular the words of Clause 16. The 30 days there referred to are not a compulsory 30 days immediately upon the passing of the Act within which the return, or even the valuation, must be made. That is the footing upon which the right hon. Gentleman who spoke last has based his criticism. The 30 days do not begin to run immediately upon the passing of the Act. The Commissioners are bound, "as soon as may be after the passing of the Act," to cause the owner to make a return, and then the period, as specified in the return, is not the 30 days referred to, but some period of not less than 30 days. So that we have periods which are definite, and which I have not the slightest doubt will be made adequate. Hon. Members will thus see that their alarms are founded upon a misapprehension. The next point raised by the right Lon. Gentleman the Member for St. George's, Hanover Square—
Is it not in the power of the Commissioners to make it 30 days?
Of course; but if they find that the work cannot be properly done within 30 days, as practical men they will not fix a period in which the work cannot be done.
Did they ever make a valuation in their lives?
If hon. Gentlemen will allow me to proceed it will perhaps be better. I have pointed out one most serious defect in the arguments adduced. Now I come to the other point raised by the hon. Member for St. George's Hanover Square (Mr. Lyttelton). He has spoken as to the extreme cost of some valuations. They were valuations relating to betterment.
So is this.
Which obviously are more difficult than valuations which relate to general increment. The betterment which may or may not attach to a particular dwelling by reason of some adjacent improvement is one very difficult to trace to its source. You may have that ascribed to something which in reality belongs to the general rise in prices throughout the district as a whole. That generally arises upon questions of betterment. Increment arising from general appreciation of price is a thing which undoubtedly is more difficult to value. Here you have to value that which in general will be an appreciation of prices not merely with regard to the particular site, but with regard to sites generally, because hon. Members who study the Bill will see that substantially—I do not by any means say exclusively—the value aimed at here is value arising from the position of particular plots of land; the value which remains is that which may be ascribed to the efforts of the community as a whole.
May I ask will not the betterment caused by public expense be one of the very things that come into this Act?
That may be, but it is a totally irrelevant question. Of course you may have your betterment in the increment, but that does not make the increment any more difficult to value. The increment is ascertained by the price of a piece of land in the market. Is it a fact, as the right hon. Gentleman would have us to suppose, that increment of special value is as difficult to ascertain as betterment? I really think that that question ought to be settled once for all by the Return issued by the Government to hon. Members in reference to the valuation which took place in America. Nothing could be more striking or conclusive than that Return in regard to the valuation of New York and to an adjoining borough which was incorporated with New York, the site value of which was ascertained in the ordinary course by the authorities of New York. They pointed out there that this valuation was not only simple, but that it had always been done; when they were taking the value of hereditaments they had always proceeded by way, first, of the valuation of site, and next by valuation of building and land. [An HON. MEMBER: "It was never done in this country."] Here is an operation which, according to practical experience, was one not only not difficult to perform, but one which was habitually performed, where there is no statutory necessity, because it was a more convenient way of arriving at the true value. [An HON. MEMBER: "What about agricultural land?"] Surely agricultural land is not more difficult to value than site value. Agricultural land is much easier to value, as I am sure every practical man will admit, than site values. Therefore you have got a case where valuation has been shown to be easy and practical and cheap. I believe the valuation of the borough incorporated by New York, where they were dealing with 113,000 parcels of land, cost 26 cents per parcel. This subject has been discussed in a very much exaggerated form in the last two or three speeches. Why should this clause be postponed, or why should the operations of this Bill be postponed in order that valuation might be attempted? We are told that valuation ought to come first. Have hon. Members opposite forgotten the Debates which took place on the Scotch Valuation Bill when it was before the House? They cannot have forgotten that, because they have been burrowing in "Hansard's" to try and get arguments for these Debates. They said then what is the good of pressing forward a Valuation Bill unless they tell us exactly what rates you are going to charge? They said, "You are putting the cart before the horse—valuation before taxation. First of all let us know the taxation which is to be put upon the land, and then you can get the machinery as to how it should be carried out." I think there is no necessity whatever to postpone the active portion of this Bill either until 1911 or until the later period proposed in the subsequent Amendments. Another point made was that the sum which would result would be a very small sum. There is no doubt that for the first year the amount is a very small sum, but that is not unnatural. It is extremely difficult to estimate; it will be a very courageous man who would pin himself to any precise estimate what the particular sum in the first year would be. Of course, in general the increment must grow slowly. There are many cases where it grows rapidly where you will get a very substantial increment in a period far less than in others. How numerous these cases are and the extent to which increments can grow it is difficult to estimate. An estimate may possibly err on the side of safety; at any rate, no one supposes that the first year in which the tax will be imposed can be taken as a measure of all that may be received from it. We must have a first year, and that is why the income will be very small, before we begin to have years in which the increment will be large. I have now, I think, answered all the substantial objections which have been put forward.
The right hon. Gentleman did not deal really with the great difficulty in which land-owners will be placed by this tax. One point raised by my right hon. Friend the Member for St. George's, Hanover-square, was not, I think, adequately dealt with by the right hon. Gentleman opposite. My right hon. Friend dealt with the question of the betterment of the Tower Bridge. The argument of the right hon. Gentleman the Attorney-General was this: He said it was far easier to ascertain an increment value due to the operation of general causes than it is to get at the betterment in the case of a specific matter. Well, I should think it was much easier to estimate one result than a thousand results. What happens in a particular case? You have definite and specific matters to deal with such as the widening of streets, the taking down of houses, and so on. You can measure much more accurately in that particular case the actual increment of value than all the increases due to particular causes all over this country and in other countries as well. My right hon. Friend the Member for St. George's, Hanover Square, adverted to the fact of the great difficulty the county council had in this particular case of valuation. The case goes much further than that, because from a municipal point of view this rather belated suggestion of the Government about valuation has been found so difficult in the municipalities that the whole system has practically now been rejected by the municipalities, and certainly in the case of the London County Council a totally different system has been adopted, namely, the system of recoupment.
I really should like to make an appeal on behalf of the owners of land, and especially the small owners, because I do not think the right hon. Gentleman has realised the terrible difficulty in which the small owners will be placed. First of all, the rustic mind is generally supposed to be rather slower than the urban mind. I do not altogether agree with that proposition. But can you imagine the effect this problem suddenly cast upon the small holders all over the country—owners of land in the neighbourhood of towns, not to speak of the numerous small holders there are in London, and other similar towns—will have. I really am putting this case for the benefit of the Government themselves. Let us take Somersetshire. In one Division of Somersetshire there are 2,500 small land holders. I am afraid it will hardly make the Government popular with these 2,500 small holders if they have to make this elaborate valuation. I must correct the right hon, Gentleman when he says that it is often done. It was never done before. It is a totally different system to which not one of these men are accustomed. It is enough to turn their milk sour to have a new problem of this kind suddenly thrust upon them. It has been said why should they not employ a valuer? Why should they employ valuers? Why should not the whole of the cost of these operations be cast upon the Government? I think the fees of the valuers are set upon a particular scale because in the ordinary course of business the demand of valuers is enormous, and under this Bill the rewards valuers would be able to draw would be largely increased.
How does the question of cost of valuers as distinct from time needed for valuation arise under this Amendment, which raises the question of how far it is desirable to postpone the operation of the Act?
I think I can easily explain how that is. There is to be this very great expense thrown upon the owners of land, and I was pointing out that they would very likely have to pay more for their valuation than in ordinary circumstances, and therefore I was saying that it is hardly fair that the cost of valuation, as well as the taxes, should fall upon those unfortunate land-owners in the same year; and in doing that I was supporting the hon. Baronet when he wishes to postpone the levy of the tax to a later period. There is another point, I think, which has not been alluded to, and that is the difficulty of finding your owner. The London County Council for the last sixteen years has been engaged in surveying the landowners of London, and they tried to discover how many there were. They have discovered 12–13ths of the property, but that has taken seventeen years, and it will take some time longer, because the 1–13th which has not yet been valued consists of six or seven thousand small owners. Before you put on your tax you must find the owners. If you put the tax upon those who are obviously owners and not upon owners you cannot find at once it would be very unfair. The cost must necessarily, of course, be very great where matters are so varied and where so much difficulty will attend the finding out of all the owners. It is not easy to begin by placing taxes upon certain owners until you discover who the other owners are. That is the reason why the operation of this clause should be postponed for a year. We must give them more time. In the case of these small owners they will be hurried and flustered by these demands, and there will in consequence be a very great chance of making false returns, and if they do not make the returns properly they will lose the right of appeal to the referee. It is very hard that because they are forced into this hurry they should lose this exceedingly inadequate right they possess under the Bill, a right which will be extended by this Amendment. I support the proposals now before the Committee, and I only wish the Mover had made the date 1912 instead of 1911.
I think that the year 1911 gives far too short a time within which to make this valuation if the Government really wish to treat this Question in a businesslike way. All the evidence we have had before Committees tends to show that the valuation, if it is to be of any use, is going to be a very lengthy and costly matter. Everybody who has had any experience on the Com- mittees which have considered this Question must agree that, in asking for an extension to 1911, the Mover of this Amendment is asking for a very small concession, and one which the Government themselves—but for considerations of party exigencies—would be prepared to accept. The Attorney-General referred to a Paper issued by the Government a short time ago, and claimed that it showed the simplicity with which this valuation has been carried out in America. I would like to ask, without offence, whether the Attorney-General has read that Paper, and, if so, how has he come to make such a statement in view of the fact that the report from one part of America made by our Consul-General to Sir Edward Grey refers to
"the great difficulty found in adjusting valuation in declining districts, and also to the difficulty in adjusting valuation to increasing value which is even greater."
I am surprised that the Attorney-General should allude to a paper of that character and take notice only of those parts which are favourable to this Bill. I think the reference I have quoted will show that they are not all agreed as to the simplicity of valuation in America. Two points were brought before the only Committee on this subject which the present Government appointed in 1906—one was the cost of the valuation and the other was the time it would take. I would like to point out that in Glasgow alone a simple matter like the registration of streets took several years. Surely the registration of streets is a very simple matter compared with the points raised under the valuation proposals of this Bill. My hon. Friend (Mr. Peel) alluded to the case of London and the London County Council, of which he is a distinguished member. I have had nine years' experience on that council, and I know the circumstances, and I should have been very glad if my hon. Friend had given to the House the result of the 17 years' experience of the scheme of the London County Council for making a plan of London. They started with the idea that there were only a few landlords, and I think that idea is behind this legislation. The cry was, "Why should London be held by half-a-dozen rich dukes, and lords, and wealthy people?" To show the difficulty entailed in this valuation, I may say that the investigations have proved that there are 32,000 small owners in London, and there are a lot more cases to be inquired into. In asking the Government to postpone the operation of this clause to 1911, so as to give time for a proper valuation and thus safeguard the public from pit- falls which have not been yet exposed, I claim that we are asking for a small matter which I hope the Government will concede to us.
This is one of a series of Amendments which the Opposition are putting forward in order to enter at the earliest moment our protest against the whole machinery of this Bill. Many of us believe that this is an unjust and an impossible tax, but we all look upon the machinery under this Bill as vague, arbitrary, tyrannous, and, I was almost going to say, fraudulent. This Amendment really raises the question whether the valuation on which you are going to base your tax is to be a real or a sham valuation. Of course, if you are going to have a sham valuation anything is good enough from the point of view of the Government, because it is only land-owners and owners of site values that you are dealing with. I would like the Attorney-General to point to a single case in which any system of valuation in any part of the United Kingdom was ever carried out under several years. Take the case of Ireland where the land and buildings have been valued, and which is a much simpler thing under the Griffith's valuation. That is an Act which the Chancellor of the Exchequer might very well read, because it lays down closely-reasoned principles which are to be carried out by qualified surveyors. Hove long did that valuation take to carry out in Ireland? The Attorney-General agrees that agricultural land is very much easier to value, and it was all agricultural land under Griffith's valuation. That valuation took years and years, and it took place under a properly drawn Act of Parliament, and not under one drawn up on political lines. It was drawn up for the purposes of valuation, and not for the purposes of politics, and yet it took several years to carry out. Now we are told that the whole of the United Kingdom not merely in relation to agricultural land, but to all the site values in and near a town can be carried out in 30 days, or may be carried out in 30 days.
dissented.
The Attorney-General shakes his head, but that is the Bill. We know perfectly well that the Commissioners will have all their forms ready, and they will be sent out at once, just like the applications for the Income Tax, with an intimation that you are to return them within 30 days.
No.
Then why do you put 30 days in the Bill?
The Bill says within a time not less than 30 days.
I could understand that argument if the Attorney-General was arguing a difficult case at the Law Courts, but I do not think it is good enough for this House. He knows perfectly well that it leaves the matter open to the Commissioners, and he throws out a hint that they ought to do it. If they do it, where is the remedy, because there is no appeal to the courts then. The whole thing is tyranny from beginning to end, and nothing will be, or ought to be, more resented by the public and owners of property than, after you have introduced this tax, to adopt this tyrannous manner of carrying it out. I do not know whether the Attorney-General listened to the speech of the Lord Advocate on the second reading of this Bill. What did the Lord Advocate say? He said:—
"Oh, there is no difficulty about this valuation, and I know how it is all to be done. You must get a careful valuer and take him round to every field; you must get your map and say there are two acres here, which have a certain increment value because they are more developed than the others; there are two more acres here which have a certain other increment value and you must go round and do it piecemeal."
Of course, you must go round in that way, because you cannot value it in the bulk. The Commissioners also have a right to call for a valuation bit by bit, and to suggest that a system of valuation of that character can be done in the period suggested by this Amendment is to my mind ridiculous, and everybody knows that no Government, except for political reasons, would ever think of setting up a tax of this kind without a proper valuation being first made with a view to the tax. Now we are really going to have no valuation at all. If the Government leave this Bill in the shape it is now in we shall take every possible opportunity of objecting to this procedure as being unfair, and they will find that the simple answer given by the average land-owner will be that the task the Legislature is imposing upon them by this Bill is an impossible one. If you test this measure in that way you will find, not merely in this direction alone, but in other respects, that the general dissatisfaction which will arise from this measure will make the Government bitterly regret having passed legislation of this kind.
I may remind the right hon. Gentleman that we have in our hands a copy of the enactment under which the penalties are imposed for a breach of this clause in the Bill. If the right hon. Gentleman will look at page 1 he will see that no penalties can be imposed unless there has been a refusal or neglect—that is to say, a wilful refusal or neglect to carry out the order which is imposed by the clause. I think that is a complete answer to the argument which the right hon. Gentleman has used.
But there is a right of appeal, which is not allowed in this Bill.
When we come to find out what remedy is enforced you have to go to the Income Tax of 1842, and there you will find what the remedy is.
But that is incorrect.
It is stated in it that if any person who refuses or neglects to make a declaration within a certain time under any pretence, and who wilfully delays the delivery of the declaration, will be treated as the Act says. That, I think, is worthy of consideration.
These points do not apply to the Amendment before the Committee. They have nothing whatever to do with it.
Of course, I obey your ruling. I venture to say that anyone who has had a personal experience on the London County Council with reference to valuations—anyone who has served on the Works Committee, where valuations are taken by the most experienced valuers—will know that constantly there are cases which arise that have to be dealt with according to previous cases. Some of the cases take considerable time. They have to be considered over and over again. Your experienced valuer says, "I have taken this case for valuation." Constantly we have seen on the county council what effect the reasons have had not only on the point under discussion, but on cases that have subsequently arisen. I have seen all that done in one afternoon. Whereas we have seen on the county council what on our agenda paper, it is quite remarkable how quickly they have been got through with satisfaction to every party concerned. This has been done because it is understood that they have been dealt with according to test cases. No one who has had experience of valuations can possibly deny that this is the case over and over again. All this is the result of knowledge and extreme care, and the experience and knowledge of the valuers will be put at the disposal of those who are concerned.
on the Opposition side: Who says so?
I should like to ask the hon. Gentleman who has just sat down, assuming that a land-owner had to fill up this return, what sort of a test case could give him the slightest guidance? I wish to point out this important point: that this original valuation is to be the basis on which the whole future taxation, which is provided for in ten or twelve sections of this Bill, is to take place. In any case, in the future you have to go back to this original valuation in order to find out what the increment is. It is obvious that in the first case the greatest possible care ought to be taken to get this valuation right. It must be obvious that if there should be any neglect and the right valuation has not been obtained great injustice will be done whenever this tax has to be collected in the future. Let us imagine the position in which a land-owner is to be placed. He has to send in the particulars. The Commissioners say that he must do it in 30 days. I do not think that provision will be strictly enforced, but the return must be sent in. Most landlords have a general idea of what their property is worth, but that is not the point at all. What they are required to do is something altogether different. What they have to do is to obtain a supposititious figure. They are told, with reference to the property as it stands, that they must deduct the value of all the buildings, of all the improvements, and, in the case of agricultural land, that would include the drainage, and then he must go through the cost of all these improvements and erase them from the value of the property. I know numerous cases of landlords who would find it impracticable to do all this within a great many months, even with assessments, to make up the return demanded by this clause. If they are not allowed proper time to do this, how is this original valuation to be relied on in the future? The Attorney-General refers to this matter in a light-hearted sort of way. I put it to the right hon. Gentleman that he is giving an impossible task to the land-owners and their advisers in the United Kingdom. He assumes that all this can be done in 30 days; but can it be done even in 30 months? What is the next point to be considered? The Commissioners may send this return back, and it is not specified in what time. I suppose they can send it back next year, or the year after, and they may demand that the return should be altered. The hon. and learned Gentleman opposite says there is no penalty. He has evidently not read the Bill. There is a fine.
These points are not relevant to the Amendment.
I admit, Mr. Chairman, that I have strayed off the point. What I wish to say is that when this return is sent back the land-owner will have to be advised again, and all these proceedings will inevitably cause a lapse of time. I cannot imagine that the majority of landowners will send a return under this Bill that will be satisfactory, and I cannot imagine that the majority of those to whom the return is sent back will adopt the valuations put upon them by the Commissioners. At present we do not know who these Commissioners are. We are simply left to guess. It must be remembered that 20 per cent. of the land of the United Kingdom belongs to trustees, and that there is a large proportion in the hands of mortgagees, that infants have to be considered, while there are all sorts of difficulties to be dealt with. I think, under all these circumstances, if the Government were dealing with a matter of finance—if this was a matter of taxation and not a political movement—if they are really concerned with taxation, they would meet an Amendment of this kind with approval. They would say, "We do not want to be oppressive, we want to give a proper time for a proper valuation to be arrived at, and, therefore, we will accept this Amendment." I am in hopes even now that the Government will accept an Amendment like this, which is a very reasonable one.
Hon. Members seem to think we are asking for further time for the valuation, because, unless the valuation is made within thirty days of the time allowed, some small penalty will be incurred. But that is not the point at issue. The point is that expert valuers may make mistakes. Suppose that a short time after a valuation has been placed upon it, the land sells at a price considerably over the value; the owner will have to pay 20 per cent. of the difference between the value returned and the price realised. There may be no increment whatever in the land value. It is a matter of opinion on the part of the valuer. For instance, a competent valuer may value a certain piece of land at £4,000; it may be sold in less than six months for £5,000, and the owner will have to pay a fine on that extra value. Surely under such circumstances an allowance ought to be made. The hon. Member seems to think that the valuation under this Bill is something like a valuation under assessment committees, but is there a member of an assessment committee who is also a land-owner who would accept the valuation by the assessment committee of his land for the purposes of this Bill? The Attorney-General referred to the American system of valuation, but the American system is like the system of the assessment committee. It is a valuation for the purposes of taxation on land in a particular district, and the valuation may be put on a high or a low basis. I have in my hand the report to which he referred, in which Consul-General Bennett says that in estimating the value of the property in New York the assessors look at the question in a very broad manner. He says, "Estimates of the rates on which land values are taxed in the City of New York vary considerably. In some quarters they may be as low as 40 per cent. of the actual value. In other cases they may run up to 90 per cent., but taking it all round it is estimated that land taxation in New York is calculated roughly upon 80 per cent. of the real value." A certain sum of money represented by the Budget must be raised by an equal apportionment upon all taxable property, real and personal. The right of each taxpayer is that he should pay no more taxes on account of his ownership of property than others pay on account of property of equal value. Therefore it is immaterial to him that all property be assessed at 50 per cent. or 150 per cent. of value, provided the ratio be the same in all cases." But in connection with this Bill it really is important that each owner should value the land at its proper value. This is a matter of extreme importance, and I hope that we shall have an answer on this point from the Chancellor of the Exchequer. I do press on the Government that a further sufficient period shall be allowed. It may be that within three months after the Act passes this may involve another valuation. The valuer may make an error which it is perfectly easy to comprehend, and I think it is outrageous that a fine should in consequence be inflicted on the owner of the land. I look on this Amendment as one of great importance.
I was not in the House when this debate was first opened, and the only reply I heard was from the hon. and learned Attorney-General. I say nothing about that except that he did not meet the point which was urged upon him. He used one argument and one argument alone— i.e., that in America or in certain parts of America valuation had been found to be easy. Further, he said that 30 days did not necessarily mean 30 days, it might mean some longer period. I do not think I am doing an injustice to the hon. and learned Gentleman when I say he made an admirable Parliamentary reply out of very meagre material. Hon. Gentlemen opposite seem to think that this affects only the Duke of Westminster and the Duke of Bedford and nobody else. I fancy the Government have not the least idea of the number of people coming under this Bill. Any fair estimate will show that an enormous proportion are interested in this subject. The hon. and learned Gentleman mentioned the case of a Division in Somersetshire, in which he said there were 2,500 owners. As a matter of fact, an immense proportion of our population are directly interested, and large numbers of people are going by this Bill to be put into a position of being obliged under its provisions to do within 30 days that which, in spite of American experience, will be admitted to be a most difficult operation. We have got behind us a great deal of experience of valuations in England, Scotland, and Ireland. The Government gave some case nearer home than America, in which valuation on novel principles had been carried out in nothing like the measure of time suggested in the Bill or even in the Amendment before the House. My right hon. Friend the Member for St. George's gave us some cases which came under his notice in connection with the County Council. He told us that the County Council took a long time to consider these things. But they had only to consider one thing, and obviously a simplification of the process is necessary to carry this out to a successful issue. The more one considers this portion of the Bill the more one begins to feel that the Government do not want the Bill to pass. They are making it so obviously grotesque, they are making the hardships so plain, that no human being can believe that they really desire it to pass. It is bad enough to tax people, but in addition to taxing hundreds of thousands of small owners throughout the country they are going to put on them the immense cost of the valuation, with the prospect of unlimited fines if they do not carry out the valuation accurately. Is there an hon. Member on the other side of the House who, after listening to the arguments which have been put forward in support of the Amendment, has not had borne in upon him the conviction that the method in which they are insisting upon this process of valuation being carried out involves a gross injustice and will inflict abominable hardship, not so much on the rich as on the poor? I hear derisive laughter from some hon. Members below the Gangway, but have they made the smallest calculation? I have endeavoured to make some rough calculations myself, though I admit that the material at my disposal is not such as to give them any very great value; but will the Government help us? Will they form any kind of estimate? I do not believe that you will find the number of owners in this country much less than 900,000 in England and Wales only, excluding London, say, 700,000 owners of land. I suppose you ought to multiply that figure by 4 or 5 to get the number dependent upon them, and that gives you straight away for England and Wales, excluding London, 2,800,000. These figures, from the very nature of the case, do not pretend to precision, but I think they ought entirely to convince hon. Gentlemen below the Gangway that they are not here dealing with the big agricultural squires of this country, or with the large agricultural owners in the counties, but you are dealing directly with a large number of people, of all sorts and conditions and degrees of wealth, and upon whom you throw by this Bill the preposterous burden that they have to go through this process of valuation within 30 days after the Bill has passed. The thing is grotesque, and the Government who can put before the House such a proposition can hardly be expected to desire anything but that their Bill should end in disaster.
I regret that I have not heard the whole of this discussion up to the present time, but I have had the advantage of hearing the speech of the right hon. Gentleman the Member for the Dublin University, and the speech of the right hon. Gentleman the Leader of the Opposition. I do not propose to follow him in his discussion of some of our valuation proposals, for the simple reason that those are questions of detail, which can very well be considered later on. That, seems to excite a good deal of merriment amongst hon. Members, but we shall have to consider them, and, in fact, I have heard nothing else for the last hour or two but that we shall have to consider them for weeks, or even months. Very well, we will consider them; but if hon. Members opposite do not mind, I would rather confine myself to the subject which is before the Committee. And what is that subject? The point is whether we should postpone the operation of this tax until first of all our valuation is complete, and that is what I am proposing to confine myself to. The question of whether we shall have 30 days, or whether we shall give more, that is the question which will be discussed when we come to deal with it; but now the question is, whether we should postpone the operation of the whole of these taxes until the valuation is complete. Hon. Members may remember the discussions we had on the second reading and on the Resolutions, and during those discussions they were constantly attacking the Government, because in this Budget they were introducing very contentious proposals, which raised no revenue in the current year. What is the argument of hon. Members here? They say that not only should you raise no revenue in the current year, but that you should have a valuation, raising no revenue this year, no revenue next year, and, I am not sure, that they think you should have a revenue in the third year. That is really rushing from one extreme to the other. But are the difficulties not exaggerated? What is it that it is asked of the owners of land to do? That is what I propose to answer. What is the demand that is made upon the owners of land? It is a demand which has been made in every Bill of the kind throughout the British Empire, and cases will be found recorded in the Blue Books, issued in the last two or three years, of notices given to the landowners of Australia, for instance, calling upon them to make a return within a certain number of days, or weeks, of the value of their property stripped of improvements—the unimproved value. These are all proposals for raising revenue within a year after the passing of the Bill; every one of them. What is the difficulty in this case, that is, the first year in the case of the Increment Tax? The point raised by the right hon. and learned Member would not apply to agricultural land. That is the point which he put. He said, you are inflicting a much more serious injury than merely the penalty put by the hon. Member for Buckinghamshire (Mr. Verney). The penalty you are putting is 20 per cent. on the Income Tax. That is not the case. I am sure the hon. Member will have taken the trouble to go through the Bill, because he never criticises without making a most anxious inquiry into the whole position; but I am perfectly certain that he must have overlooked for the moment the subsection of the Bill which says that no man is penalised owing to any mistake in valuation or disputed valuation, and if the owner of the land says that he is unable to give a reliable valuation within that time, all that happens is that he has to pay up arrears when the valuation is complete; and if there is any dispute about the valuation at all, and if it is discovered finally that the valuation in the first instance cannot be sustained, he is not damnified either in regard to the Undeveloped Land Tax or in regard to the Increment Tax. I will read the clause:—
"Where the value to be adopted, as the original total or the original site value of any land for the purposes of this part of this Act, has not been settled at the time when any duty under this part of this Act becomes leviable, any duty under this part of this Act shall be assessed as if the values as declared in the return of the owner were the values adopted for the original total and site values for the purposes of this part of this Act, and, on the values to be adopted being ultimately ascertained, if it is found that the amount which should have been paid as duty exceeds that actually paid, the excess shall be deemed to be arrears of the duty, except so far as any penalty is incurred on account of arrears, and if it is found that the amount which should have been paid as duty is less than that actually paid the difference shall be repaid by the Commissioners."
I am afraid my point has not been dealt with. The point I wanted to make was this, that supposing the owner undervalues his land and the Commissioners accept the valuation, so that the amount is settled, and then it is found on a sale within six months or a year that he has undervalued his land, then he will have to pay 20 per cent. on the error.
If the whole case of the Opposition is confined to that I really must say there never was less justified comment. If an owner undervalues his property, and the Commissioners accept it, then that is a final valuation; but if the owner says I am unable—that is the point which is put to me during the discussion, and notably by the Leader of the Opposition, who said how can they do it in this time—supposing the owners said we cannot do it, we are unable to do it in that time, until the valuation is complete either by them or through the order, and at the expense of the Commissioners, or by valuation by the Commissioners, then they are not damnified by anything of that kind.
Will the right hon. Gentleman tell us, while he is on that part of the argument, what is to prevent the Commissioners, on hearing from the land-owner that he cannot present a valuation, making their valuation, which then becomes the valuation upon which the land-owner is to pay?
If he likes to leave it to them, then that is a totally different matter. But if he, on his part, is unable to make a valuation, and notifies the Commissioners that he cannot, then practically that is casting upon the Commissioners the duty. Then comes another point, as to whether or not there should be an appeal. That is a matter which we will discuss when we come to appeals, but at any rate the remedy is in his own hands. He is not bound to undervalue his own property, and if he does the responsibility is entirely his. Whose responsibility is it?
He may make a mistake.
Here is a right hon. and learned Gentleman, who has had a good deal to do with Land Clauses cases and compensation cases, and he asks, if an owner makes a mistake what will happen? Well, he has to suffer. That is a proposal which seems to be surprising to hon. Members, but if he is claiming compensation under the Lands Clauses, and puts in a claim which is an undervaluation of his property, is there anything surprising in saying he must suffer by his own mistake? Why should it not be so? And yet that is a proposition which is so astonishing to hon. Members that they greet it with profound applause, as if it were some profound truth which they had heard for the first time. The same thing applies here. He is not bound to make a valuation. He is not bound to do it. Some hon. Members used the phrase that he may be compelled to do it within 30 days, but as a matter of fact the Bill says, "At least 30 days." That is not within 30 days, and is a very different thing. It is rather remarkable that we are asked for two years to take a valuation, and in the meantime no tax is to be imposed. I remember the Agricultural Rating Bill, when it was a question not of making a valuation to raise half a million but to raise two millions. It was a valuation of the most complicated character, but it was not a valuation of agricultural land, where the agents had the whole of the material, but the valuation of the buildings and the land apart—a most difficult thing. I am not complaining of it. It could be done. I do not say it was an unfair thing to ask that it should be done. It was done; and, of course, everyone acquainted with valuation knows that it is merely a question of the number of people you put on the job. If you sent half a dozen valuers from London to value the whole of the land of the Kingdom it would take probably 20 or 30 years, but that is not the measure by which it is to be done by any means, and when we come to the question of machinery we shall have to discuss it. We have clauses dealing with machinery, every one of which can be discussed, and there are endless Amendments, every one of which will be discussed.
There are reasons why I do not want to postpone the tax. First of all, I want the money. Then when we come to discuss the question of the application of part of the money to local funds, this will have a very important bearing upon it. Supposing part of this money were allocated to local funds, would hon. Gentlemen then begin to argue that they ought to put off the money being given to local authorities for three years? I agree that every consideration ought to be given to the owners of land in the method of making the valuation. For the Death Duties they value their own land. They value the building lands, and the question of increment cannot possibly arise within a year or two years, or it may be 15 years in the case of agricultural land. The provisions of the Bill make it impossible for increment to be raised on agricultural land until something arrives which transforms the agricultural land practically into building land, or until it is double or treble the value of agricultural land, and that could not come to pass in the course of a year or two. It is purely a question of valuing just that strip of land which you have in the immediate margin of towns. I suppose it would amount to two or three millions of acres. To say that that cannot be done in the period which will elapse between the passing of a Bill and 31st March is really to display absolute ignorance of the methods of local valuation. In his evidence before the Committee on Local Taxation Mr. Harper, of the London County Council, than whom there is no man more competent to speak as to the way in which valuations are made by the London County Council, made it perfectly clear that there will not be the slightest difficulty in the four or five months which would elapse in making the valuation which will enable us the first year, at any rate, to raise something like half a million of money out of the whole taxes. We have taken into account the difficulties, and that is why we have not estimated for the first year the full value of our taxes. It is because we know it is impossible in the current year to have a complete valuation. But, at any rate, you have to begin, and if we simply put if off for a year or two there would have been indeed some justification for the taunt levelled at us from the other side of the House that we are Budgetting this year for something which does not raise revenue in the current year.
I cannot say I think either of the speeches delivered from the Front Bench opposite are very convincing. Both the Attorney-General and the Chancellor of the Exchequer devoted a considerable proportion of their speeches, in which they were supposed to be replying to questions which we had addressed, to the problem of valuation in this country—the Attorney-General to the method of valuation in New York and the Chancellor to the system of valuing in Australia. The problem in Australia and New Zealand stands upon an entirely different footing from the problem in this country. The Attorney-General said:—
"It is unnecessary that valuations should precede the imposition of the tax. Here you are wanting valuation before you get the tax, but two or three years ago, when the Scotch Bill was on, you were wanting the opposite."
He betrays an imperfect apprehension of the situation. The Bill we were discussing two or three years ago was not one for the imposition of taxation, but one to impose rates; and it was not even a Bill to impose cumulative rates in addition to the exist- ing system, but in substitution for the existing system. The effect of that legislation would merely have been to shift the allocation of the burden among different sets of people. The Lord Advocate, in his Report on the Bill, said:—
"In brief, the object of the Bill is neither to find a new source of taxation nor to retax an existing source, but merely to increase the number of ratepayers and to re-allocate their burdens."
That being the position, we were perfectly entitled to say when you are bringing forward your proposals, before you have a very expensive valuation like this, let us hear what you are going to propose in the way of rating. But this is quite a different proposal. This is a proposal for the imposition of an entirely new burden upon the landed wealth of the country in general, and I think the right hon. and learned Gentleman failed completely to apprehend the vital point of distinction between the two Bills. The Chancellor of the Exchequer has spoken about the difficulty of valuation. May I point out what the unfortunate owner has to do. He has to prepare himself for the increment value, and that in its turn depends upon five or six other different kinds of value—site value, original site value, the principal value, the value of the fee simple, and the total capital value—upon each of which in turn your taxation has to be paid. It is suggested that if a man does not do it the Commissioners will, but what security is that to the man? This site value, upon which your tax is to be based, is a value where, as the Lord Advocate has said himself, accuracy is impossible and unattainable, and if attainable it would be unintelligible, and this is the precise point at which the Chancellor chooses to say if a man makes a mistake in the valuation he is to pay for it. In Glasgow, as a matter of fact, they have been engaged in making a register of streets for a considerable number of years, and it is not finished yet. The Chancellor of the Exchequer spoke of Mr. Harper. I have a great respect for Mr. Harper's statistical powers, and I accept everything that he says for the purpose of argument. But, after all, what did Mr. Harper say? He said: "We can value a site in about five minutes, we can do it in the ordinary jog-trot of valuation." Supposing a skilled man like Mr. Harper is able to value a site in five minutes, that does not lead you very far, because after all there are 225,000 sites in Glasgow alone, and if Mr. Harper and four other officers equally skilled with himself started valuing the sites of Glasgow now and went on day and night, neither eating nor sleeping, from now until Christmas, they would only just then have completed the task. The right hon. Gentleman has appealed to Cæsar, and by Cæsar he shall be judged. I think my hon. Friend, in asking for two years more to make this valuation, is asking for a great deal less than what will in practice prove to be necessary.
The Chancellor of the Exchequer has made a reply which I cannot say makes me think the valuation of the land of the country is going to be a very simple process. It is a question, after all, of detail. That is a very simple thing to say, but it is a very important detail. Then, he said, if the land-owner makes a mistake in assessing the value of his land he must be taxed on that mistake. That is a very justifiable argument to put before a person who makes a claim for the purpose of compensation if his land is taken compulsorily. It is quite right that he should not be recompensed, but I do not think it is a sound argument to put forward when a man makes a mistake in trying to carry out the very difficult process which this Bill imposes upon him. The Leader of the Opposition referred to the number of landowners he thought there were throughout the country. I have a return dated 4th July, 1876, which shows that even then the total number of owners of less than one acre in England and Wales amounted to 703,000. The total number of owners of land in England and Wales of every extent amounted to 972,836. In Scotland the number of owners of land of under an acre was 113,005, and the total throughout Scotland was 132,131. Adding these totals together, you will find that 30 years ago there were 1,104,967. It would be a very consoling thing for the 1,250,000 landowners to know that if they make a mistake in the valuation of their land they are not to be taxed upon it. That is the cheap consolation which the Chancellor of the Exchequer holds out to them. If a man does make a mistake and pays too much duty, the amount of the duty paid in excess will be repaid, but if he undervalues his land he will have to pay up the arrears of duty. I am informed that in the expression "arrears of duty" it is implied that the person taxed has got to pay not only the absolute amount of arrears of duty, but also the interest on the amount for the time during which he ought to have paid the duty. If, on the other hand, he has paid too much, the State will only repay to him the exact amount of excess duty, and will not pay the interest on the excess duty also. That point has been put to me, and if it is so, obviously it would be unfair to the person who has paid the tax.
I am rather surprised that the Chancellor of the Exchequer referred to the Agricultural Rating Act in dealing with the question of valuation. I forget how many months he said it took to make a complete valuation not only of the land of the country, but a separate valuation of the houses. That valuation was a very rough and ready calculation made by the assessment committees, and there was no particular attention paid to the exact interests as between land and buildings. We were not taxing a new lot of people. You were going to relieve a certain number of people in a certain limited area. Surely the right hon. Gentleman will not have the audacity to say that the various assessment committees have made the assessments on land and buildings in the same way as will have to be done under this Bill. He must admit that under this Bill we want to get a complete and uniform valuation of the land of the country at the present moment, and in order to do that it must be gone into in very careful detail. The work must require a large amount of professional advice and assistance in order to obtain a proper and actual valuation of the land. It is all very well for the right hon. Gentleman to say that the owner of the land has only got to make some rough guess of the value of the land, but under Clause 16 he has got to declare the total value and the site value respectively of his land, and the value has also to be declared separately in respect of each piece of land which is under separate occupation. Obviously, if the land is really to be properly valued, you must not only value separately each piece of land under separate occupation, but you must value separately each field of that separate occupation. Take the case of a large farm such as you find in many parts of England. There is some good land, some moderate land, and some grass land. Probably it is in the neighbourhood of a village. There may also be on the same farm some exceptional land on which large expenditure has been made. In a dry season there is no more valuable asset than a piece of land with a stream running through it on which a man can run his sheep. The value of the watered meadow and of the tolerably good land is totally different from that of the field which runs up the hill. Therefore, to make the return complete, the value of land owned and occupied by each person ought to be made separately and each field ought to be valued separately. That means an enormous burden of expense laid upon one part of the community alone.
It should be remembered that it is only one class of the community that the Government are proposing to give the privilege of paying this tax on what they are pleased to call the increment value. If you were to compel every owner of a valuable picture, every owner of the original copy of a valuable book, and the owner of every class of shares in commercial undertakings in this country and in foreign countries to declare the actual value of his or her possession there might be some reason for asking the owners of land to undergo the great trouble and expense of declaring the total value and the site value of their respective possessions. I venture to think that it is absolutely impossible to ask every small owner of land to carry out this valuation in any short and reasonable time. It is obvious that if this tax is going to be levied at all it must be levied on a uniform basis, otherwise you will get gross anomalies. You will get the man who sells his property next year or the year after, when the price of land may have gone up. He will pay the Increment Duty on the value of that land. Take another property of the same kind, upon which this duty will not be leviable for 20 or 30 years. By that time, owing to the experience which they have obtained in other parts of the country, the Government valuers may come to the conclusion that the method on which they originally valued was wrong. It may be found that the unfortunate people who paid in the first year or two the increment duty may have paid on a totally wrong basis, and, therefore, they may be compelled to pay temporarily an unfair share of the burden of taxation. On that ground it is obviously fair that the collection of this duty ought to be deferred until a proper valuation has been made throughout England and Scotland. Reference has been made to the debates on Scottish Land Values, and some of my hon. Friends were rather twitted for having at that time cavilled at the proposal to impose a tax before a Valuation Bill was brought in. That is not a fair way of stating the case. The attitude my hon. Friends took up was that it was quite unfair to impose on the owners of property the great expense of making a valuation unless they were told that for some reason or other it was to be used for the purpose of taxation. That the Government refused to do. In the country they said it was to be the basis of rates and taxes, but in the House of Commons they abstained from saying anything of the kind. Let me quote what Lord Shaw said on the vital necessity of having a Valuation Bill passed before any tax of this kind was imposed. He was referring to the ascertainment of the capital value of sites, and he said:—
I have listened with great attention to the debates on the question of valuation and on these new taxes, and I am bound to say the impression I have derived is that the right hon. Gentleman who has proposed the taxes has been badly advised when he has gone to obtain a practical opinion as to the real effect which these taxes are going to have on the people and property they are going to fall upon, and I say that with all the more emphasis after listening to the speech of the Chancellor of the Exchequer, because he was primarily concerned to explain to the Committee how easy it was to make a valuation, and in proof of that he cited the fact that under the Agricultural Rating Act of 1896 a valuation was made of all buildings separately from land. The right hon. Gentleman will admit that that statement was made with the idea of conveying the impression to the House that a separate valuation was made in respect of every farm, and of the value of the buildings apart from the land. Does the right hon. Gentleman make that statement? If not his argument is worthless.
All I say is that the Act of Parliament asked for a separate valuation of land and buildings, and made that a condition of the boon which was conferred. If the hon. and gallant Gentleman means to suggest that the boon was taken without the Act of Parliament being carried out, that is a matter that requires to be explained.
The right hon. Gentleman is leading us off in highways and by-ways, and we want to get him to the point. We have tried for about five weeks to get him to the point, and we will have him there before we have finished. The country will insist on him being brought to the point, because it is perfectly obvious that he is not going to place this burden on the country without understanding what it is, on whom it is going to fall, and the method in which it is going to be enforced. So far we have not had one word in that direction. The right hon. Gentleman endeavours to convey the impression to this Committee that the Agricultural Rating Act required a separate valuation of all houses and buildings apart from land, and the inference the House was to draw was that the valuation was carried out, and easily carried out. As a matter of fact, no such valuation ever was made. It was the very difficulty and the impossibility of making that valuation which caused it not to be made. If the right hon. Gentleman looks at the Act itself he will see that under section 4 the Local Government Board shall make regulations as soon as possible after the passing of the Act to get this separate valuation, and if he looks at those Regulations. at page 476, at the Statutory Rules Orders of 1903 he will see that the Rules and Regulations provide that if hereditaments include a house the minimum rating value was to be one-eighth, and if they did not include a house the minimum rating value of the building was to be five per cent. This was done because it was impossible to obtain a separate valuation—I will not use the word impossible—but because it was not thought practicable to obtain a separate valuation a definite fraction was definitely fixed, and was accepted all over the country. Therefore I really think it is not fair to the Committee for the right hon. Gentleman to bring forward an instance of that character, as he does, to suggest to the House that he has a precedent for a completely separate valuation made on different hereditaments, when, as a matter of fact, it is an exact instance to the contrary; and no valuation was made, as far as I am aware, on any hereditaments. I have a fairly good recollection of the putting into force of that particular Act. I have no recollection of being asked or of anybody being asked to give a separate valuation of the houses and buildings apart from the value of the land. On the contrary, the fractions one-eighth and one-twentieth were taken and adhered to from one end of the country to another.
I do not wish to interrupt the speaker, but I should like to ask what valuation he put upon his own land in Felixstowe?
I was not asked to put a valuation on my land anywhere, and as far as I am aware nobody else was. I think observations of that kind are very contrary to the ordinary procedure of the House of Commons. We are arguing here on public ground. If other people had to make valuations, and it were the law of the land, I should be prepared to make mine. It is the small man who is going to be hit under this much more than the big one. As regards the difficulty of this valuation, I want to make perfectly clear to the Committee what it is that is taxed, and what the owner of a piece of land will actually have to do under this Bill immediately. It is not a case of one valuation; it is a case of two valuations. What this Amendment proposes is that the time for the actual imposition of the tax shall be deferred for a comparatively brief period—I think a very much shorter period than is really necessary under the circumstances of the case. What has to be done now under this Bill, if it comes into force, is that, first of all, an original valuation has to be obtained under Clause 14 on one basis. Then immediately afterwards perhaps another valuation has to be obtained under Clause 2 on another basis. What I should like the right hon. Gentleman to tell us is how he finds it possible to compare two things which are not comparable? How is the valuation made under Clause 14 to be compared with the valuation made under Clause 2? Under Clause 14, which is the clause under which the original valuation has to be decided, the valuation has to be obtained simply by imagining the land divested of buildings, trees, bushes, and everything upon it. Within a period—however brief, it may be within a few days—if the owner dies or sells his property, another valuation has to be obtained under section 2, and the basis of the valuation under section 2 is quite different from the basis of the valuation under section 14. It has to be a valuation of the hereditament itself as a whole, that is, not the simple subject of the land, but the complex subject, which consists of the land and the buildings upon it, has to be again valued, and you have to deduct from that the value attributable to the value of the buildings. What does that mean? It has never been explained to us what the value attributable to the value of the buildings means. A valuer must have a guidance from this House. He must have a basis to value on. Why is there this difference? Why is the first value to be a valuation of site value, merely of the land divested of building? Why is the second valuation to be something quite different, that is to be got at by deducting the value attributable to the buildings? What does that mean?
We are really now entering into the discussion of the question of valuation, which is a totally different point from the point before the Committee.
On the point of order, I beg to submit this: We are suggesting that the date at which this tax should be levied shall be postponed. The point to which I am directing my remarks is to show the number of processes, and the order in which those processes would occur, which the subject of the tax would have to go through before the tax was leviable. I submit that it is impossible to produce anything more germane to the Amendment than to show exactly what will have to be done before the tax can be levied.
It is quite in order to point out the number of processes as requiring time, but not to argue them.
I have already stated' that these valuations have to be made on a different basis, and there is another point which is of great importance. In all the Continental examples which hitherto have been cited, we have had a valuation made by one authority on a uniform basis for a single uniform tax on the entire value. As far as I know, we have not had any instance brought before us yet of a tax levied on the increment value upon the basis proposed in this Bill. What, is proposed now? Not a uniform tax under which everybody will be treated alike, because you will not obtain a particular valuer or a particular company of valuers who will adopt the same methods, and who will have the same consideration always present to their minds in dealing with a definite class of property. You are going now to have each individual making his own separate valuation, and you will get an infinite variety of valuation, and, in addition, every owner will have his time-limit. You must either yourself or through your valuer make your valuation within a limited period, and then the right hon. Gentleman says if you make a mistake you must expect to suffer. That seems to me an impossible proposition, and I think that if the right hon. Gentleman considers it he will see that it is absolutely necessary to provide some extention of time. Otherwise in what position shall we find ourselves? We shall find that a man arranges a valuation bonâ fide, and that it is accepted by the Commission. Does the right hon. Gentleman suggest here that the owner of the land can do anything more than appoint a valuer, pay the valuer, and give him all the figures—
That is going into the merits of the valuation, whereas the Question before the Committee is one of time.
All these points will have to be gone through, and I am simply asking the right hon. Gentleman whether he would not give time before this tax shall fall on the subject. It is a most important point to show what will have to be done.
Yes, but I would ask the right hon. Gentleman to refrain from going into detail.
We have been trying to get some details for five weeks. It is absolutely necessary. The whole thing is based upon—
Every one of these details will come on in Debate.
Will the right hon. Gentlemen realise how much time is required to carry out all these operations? Will he realise the hardships that will be imposed upon the subject after having carried out all these operations to the best of his ability and having obtained his valution if the owner either dies or sells the property? The point I was coming to, which is obviously I think ad rem, was this: In such a case these two valuations will be practically simultaneous. There is the valuation which he has made himself under Clause 14, and then immediately another valuation has to be taken under section 2, it may be by a different valuer, and if those two valuations happen to disagree then 20 per cent. on the difference has got to be paid by the taxpayer, and I would venture to suggest to the right hon. Gentleman, if it is only in the interest of the fair seeming of the Bill, to make it look fairer that there should be some decent interval allowed to elapse between the original site value imposition under Clause 14, on which the entire duty is actually levied, and the second valuation claimed under section 2. There surely must be some period, and I should have thought the period suggested by this Amendment would be regarded as a reasonable minimum period. I am sure that the right hon. Gentleman does not suggest that an enormous increment of taxable value should take place between the imposition of a valuation under Clause 14 and the imposition of the valuation which must take place on death within a few weeks, or a few months, or even a year after. Does the right hon. Gentleman suggest that the second increment would be leviable within that period? If not, surely it is not unfair to ask that the period up to which the tax may be levied should be two or three years at least from the time when the original valuation was made under the Bill. What will actually happen, I take it, will be this: I suppose after the passing of this Act when there is any sale of land, or on the death of an owner of land, a second valuation will be compulsory under section 2—is that so?
And on leases.
Am I correct in that? It is a perfectly plain question. It is only when answering questions in that way—
Really it is impossible to conduct the proceedings in the way the hon. and gallant Gentleman suggests. It is impossible to conduct the proceedings in this way. The hon. and gallant Gentleman begins to discuss the details of valuation, and then proceeds to conduct a sort of process of cress-examination on Clauses 1, 2 and 3. He wants me to state the meaning of Clause 2 and of Clause 3 while we are on Clause 1. It is perfectly impossible to conduct the business in that way. There is one simple and narrow proposition before the Committee, but the hon. and gallant Gentleman, in order to argue it, rambles over the whole Bill.
The question I asked the right hon. Gentleman is absolutely to the point. When a Minister comes down here to defend his measure he expects to he cross-examined.
He expects to be cross-examined when you come to the point. The hon. and gallant Member is cross-examining me on the second clause while we are upon the first part of Clause 1.
That is an example of the right hon. Gentleman's method of conducting these Debates. He said himself that our opportunity for arguing this question of valuation would be on this Amendment. He offered us this opportunity, and told us not to argue it on the previous Amendment to postpone Clause 1. Then, when we argue it on this Amendment, he tells us it is not to the point. ["No."] It is so, and we have to put up with it. I will again repeat my question, which is this: On a death, or a sale of any land or interest in land, or relief occurring after the passing of this Act, will the valuation under Clause 2 be required? Until we get an answer to that question it is impossible to discuss this particular Amendment.
The hon. and gallant Gentleman is speaking to Clause 2. We are only dealing here with the period at which the duty is to come into force. On that the hon. and gallant Gentleman is asking questions as to the meaning of Clause 2 and Clause 3, and all through the Bill, though those questions have no bearing at all upon the Amendment before the House—
I submit that what we want to get at—and I do hope you will assist us in doing it—is to get the real meaning of this Bill.
The hon. and gallant Gentleman forgets that it is not the real meaning of the Bill, but the real meaning of the Amendment which is the subject of discussion.
The real meaning of the Amendment is that the subject who is taxed under this Bill shall have sufficient time allowed him in which the valuations required under the Bill can be made, and the right hon. Gentleman directly invited the Committee to discuss this question of valuation on this Amendment. You were not present, Sir.
That may he true, but I am in the chair now, and I have to give my ruling as questions come before me.
If I cannot get an answer I will assume that, under the Bill as it stands, if a death occurs or a sale or a lease of real property takes place after the Act has become law, or, indeed, after the 30th April, 1909, which I believe is the date fixed by the Act, the valuation under Clause 2 will be required, but the valuation under Clause 14 may not be made until months afterwards. Therefore, you will have the cart before the horse. It is only reasonable to ask that the date under which the valuation shall be made under Clause 2 shall be at any rate after the original valuation has been fixed. The right hon. Gentleman has cited the case of foreign countries, where no similar valuation exists. In his next reply perhaps he will tell us whether he knows any foreign country—America or anywhere else—where a valuation has actually been made of agricultural land for the purpose of taxing its capital value? Under this Amendment you would have a reasonable period, and a very much longer period is really required than that fixed under this Bill. You might have property for months, or even years, subject to the tax, when the valuation has not been made, when the amount is not known, and all because the right hon. Gentleman does not see fit to allow a reasonable period for the Act to work.
I have an Amendment to the Amendment to move which raises somewhat different issues to those which have already been discussed. I entirely agree with what my hon. Friends have said on the question of valuation, and I think the Chancellor of the Exchequer made a strange mistake when he said that only two or three millions of acres would come under the valuation proposed by this part of the Act. I confess I rather wondered what was going to happen in a case which has come within my personal knowledge. On one side of a lane there is a freeholder with 19 acres, and there is one on the other side with a freehold of 2½ acres. The latter is illiterate. These two are to give a detailed site value within the 30 days allowed; I can hardly tell how they are going to do it, and I only hope they will not ask me to do it for them. The issues raised by the Amendment I am about to propose are considerably larger than those which have been referred to. The difficulty of valuation is by no means the only question which arises. I propose to introduce other considerations, and in order to enable me to do so I propose to move to substitute for the word "eleven" the word "thirty." The effect of this Amendment which I have already handed in would be to introduce the principle of the time-limit for the purposes of this Act. I do not do this in any captious spirit, but merely to apply to this measure the principle of the Licensing Act.
The hon. Member is seeking to raise other issues merely by substituting the word "thirty" for the word "eleven."
The argument I was about to address to the House was that the present date of commencement will not enable existing owners to make arrangements in good time, and, therefore, that the commencement of the Bill should be postponed in order to enable them to adjust the financial arrangement to the new taxation.
The hon. Member cannot go into the whole question of the Bill upon this Amendment, which is restricted to a question of date. The Amendment which he is going to propose to leave out the word "eleven" with the view of inserting "thirty." It is the same subject that has been discussed already, and it cannot be widened by a mere change in date.
I was going to point out that the Amendment of my hon. Friend did not go far enough, that it dealt only with the difficulties of valuation and not with other difficulties which may arise, and which I would like to enumerate.
On a point of order, the hon. Member is referring, I understand, to the year 1930. As this is a Bill to make financial arrangements for the year, may I ask whether it is in order to accept such an Amendment, or to discuss it?
The date 1911 might be said to be outside also, but the Amendment as to 1911 has been accepted. As I have already pointed out the hon. Member is trying to raise an entirely different question from that raised by the Amendment, which is simply a question of changing the date.
May I not argue that the hon. Member has proposed too narrow a term, and that with other considerations it would require a much longer period. I submit that I am entitled to show that the period is too short.
Yes, but the hon. Member should keep within the limits of the Amendment before the Committee.
If these taxes are applied immediately owners of land affected will not be able to recast their arrangements. Therefore, I suggest, that as in the Licensing Bill, though not for the same reason, there should be a time limit. I take the case of a valuation that was actually made of 20 acres of land on the outskirts of London to illustrate my point that present owners are likely to be affected by want of time.
The hon. Member must not go into the details of these cases. He should limit himself to the questions involved in his Amendment to the proposed Amendment, the difference of time.
I submit that they should give existing owners of land time to recast their financial position. It is necessary that the time of the Act should be deferred.
The hon. Member's proposal is to leave out 11 in the present Amendment in order to insert 30. The hon. Member should limit himself to the question as to the reason for the difference between 11 and 30.
It is really impossible to develop this argument. Therefore, I must content myself with making a protest. I think that my hon. Friend's Amendment is sound and useful so far as it goes. I do not think that even for purposes of valuation it goes far enough, and certainly for the purposes of easing the position of existing owners it does not go nearly far enough, but as I have not been able to develop my argument I shall not in this case move my Amendment
I think that the people have not really realised the enormous amount of work which will have to be done in the short space provided by the Act, within which the owner of land has to make a valuation. An owner is not necessarily the owner in the ordinary sense of the word. For instance, he will include the trustee or the mortgagee. In this case, speaking as a trustee, one would have to make a double valuation of the land, first as it stands with buildings, and secondly, the more complicated valuation of the site value of the land. Where is the trustee to get the money from after he gets the notice of 30 days? He would have to raise the money somewhere. Again, the mortgagee is an owner under the meaning of this Act, and suppose he does not take any of the necessary steps then the "real" owner must try to stir him up, and get him to make a valuation. All these operations take time. There may be some instances in which the person might try to make the valuation himself. You might, for instance, try in certain town lands in the South of England to estimate the value as it stands with buildings upon it. That is a comparatively simple matter to that of ascertaining the valuation of farming land. You have to split up the farm and deal with the difficult conundrum set under this Bill, which—in spite of the Lord Advocate's statement that there are valuers who would give an opinion on any subject at any moment, which may possibly be true—would puzzle even a Scottish valuer. You have to take land, for instance, which has perhaps never grown anything but grass since the days of Stonehenge and divest it of anything which grows upon it—that is, turf and grass—and you are to ascertain what the site value of that land would be for a purpose to which it has never been put and for which no sane person would think of using it. That is the "easy" problem of valuing agricultural land. Then we come to the rather more difficult problem. Take the case of a railway. You have to value first the railway as it stands, with building, rails, and so forth. It is the common knowledge that the impossibility of valuing railways for rating purposes has long ago resulted in the Legislature's allowing rating to be done upon the profits of railways and not upon their actual value. To value, say, 50 miles of railway, with the rails, buildings, etc., as they stand, is a comparatively simple problem; but the next thing is to discover what the value of the land would be without the rails or buildings and so forth. That is a problem from which even a Scottish valuer might shrink abashed for a short time—at all events, for 30 days. It is a problem which has never before been submitted to mortal man. Then there is the question of valuing docks, which, of course, would be an easy one for a Scottish valuer. I should not be in order in discussing the advisability of putting a tax on docks. You must not tax goods which come into the docks, because those goods belong to foreigners, but it would be quite within your power to tax the docks. That is Free Trade.
That was not my meaning.
Whatever the hon. Member meant, it would not be in order for me to discuss it now.
Is the hon. Member in order in discussing the incidence or the meaning of a tax, whether it is Free Trade or Protection, on this particular Amendment?
No. I think the hon. and learned Member will himself recognise that he is straying somewhat from the Amendment before the Committee.
I am afraid I did. For the purpose of this argument I will accept that it is a thoroughly desirable thing to tax docks. You have to value the docks with the buildings, etc.—a pretty heavy expense to put any dock company to—but after that, under this section, you will have to ascertain the site value and assume to be taken away the whole of the buildings, embankments, and so on.
The hon. and learned Member is going too much into detail. The Amendment only deals with the date when this tax should be levied.
Anybody who cares to read the Bill will find the details which I have indicated. The process, at any rate, will be a very long one. They will have to find the site value of the docks, without the embankments or anything else, with the risks of the river overflowing, which, of course, would be a matter of detail into which I must not enter. In addition to these difficult problems, which have to be decided within 30 days, the Inland Revenue Commissioners have to deal with questions of law, such as whether any particular institution is protected under the protection clauses, in consequence of its purposes being public or charitable; or, in the case of Temple Gardens, whether or not the objects of that society are public or charitable. These are difficulties which require, even from the youngest of us, a few hours' consideration before we can give a definite answer. For these reasons, I suggest that the Government have altogether underrated the seriousness of the task which they have set their officials, and that they ought to consider this Amendment most carefully with a view to giving further time to deal with these difficult matters. I have carefully abstained from going into matters of detail; but I can assure the Committee that when I speak of matters of detail I am speaking of matters which anywhere outside this House would be called not matters of detail, but matters going to the root of the whole business; and when we have an opportunity of discussing them we will prove to any fair-minded persons that the scheme under this Bill is impracticable, impossible, and unworkable.
This morning I had the advantage of talking to a gentleman who has had considerable experience in surveying land, and he assured me that the idea of sending in a valuation of land in 30 days or any, ping like it was absolutely unworkable and absurd. I cannot see how you can do it, for instance, in the county of Warwickshire, where there are a few large estates and a large number of small ones. How can you get a sufficient number of valuers to go down to that county, and, if necessary, produce a valuation of the land within 30 days? It is perfectly impossible. If the unfortunate owner is not to be mulcted for increment duty he has to prove that his land is not worth more than £50 an acre. So that it is absolutely essential, as soon as ever this Bill becomes law—if ever it does become law—that every owner of land in this country will then and there have to find somehow or other the value of his property. Now I venture to say, when the Chancellor of the Exchequer, in speaking of this Amendment, complained that these parts of the Bill were being alluded to, he—if I might say so with respect—alluded to something which none of us can help doing. It is absolutely impossible to take one part of the Bill away from the other. The whole thing is dovetailed, clause by clause, and if you are to study one clause you have to read up the other clauses and try and understand them, in order to get some lucid explanation about the Bill at all. Clause 1 deals with increment value in order to—
That is not speaking to the Amendment.
But, Mr. Caldwell, the point I wanted to make was that in this particular tax, increment value on site land, it is placing an impossible task on valuers to get at the value of this in anything like thirty days. And the only way we get at the site value of land, according to this Bill, is to turn to Clause 14, where the site value—
The hon. Member must keep to the point.
But, Mr. Caldwell, what we are doing now is to try to get at some time during which it will be reasonable for land to be valued. By this Bill you have got to try to find the prairie value of land. That is what it practically amounts to. You want to be like the hero in the Arabian Nights trying to find out by putting a magic carpet on the land the true value of it. You whisk the carpet away, and with it the houses and everything that makes the land valuable, and then you are supposed to try to find out the value of the land by itself—that is, anyhow, how I understand the Bill. You have got, according to Clause 14—which I hope I may not be out of order in mentioning, because a great many hon. Members have, mentioned it—to try and divest the land of everything over it and in it. I venture to say that this is a gymnastic feat that it will be most difficult, if not impossible, to perform. It has been said that it has been done in the matter of the Death Duties by the Act of 1894. But what I would point out is that in the Death Duties you paid on the value of what you got. By this Bill people are to pay not on the value of what they get, but on the value of what the Commissioners think they ought to get. That is the whole difference. There is nothing in this Bill to prevent agricultural property being valued—in fact, it will have to be valued—and if it is not proved to be worth less than £50 per acre that agricultural property may be mulcted for increment value.
On the Death Duties it is comparatively easy to get at the value of agricultural property, because the principal value of agricultural property for Death Duties purposes is not to exceed 25 times its annual value as assessed under Schedule A of the Income Tax. What, to my mind, makes it infinitely more difficult to value this land is that in another clause—I hope that I may not be out of order in mention- ing Clauses 16 and 19—every bit of land is to be separately valued. Apparently it is left to the Commissioners to say how the incidence of that land is to fall as regards the various acres that make it up. I venture to say that it is a most difficult thing to do. It is almost impossible to do. It is fairly easy if you get the—
The hon. Member must not anticipate Clause 16.
I was not anticipating at the present moment.
The hon. Member may make a reference to Clause 16—a general reference such as those that have been made. He is not in order in going into detail.
I am sorry. It is extremely difficult to discuss this subject and to keep in order. But I want to place one point before the Committee before they settle this Question. There are to my knowledge in certain parts of England sites at the present moment receiving rent very much less than they might receive if they were put to other purposes. There may be cottages and gardens, allotments, and so on, which if sold for building purposes might fetch a greater sum than the people who occupy them now pay. All this is to be gone into when the valuation is made, and the valuer has to find out all these things before he can make his report. The valuer, that the Government with its paternal desire, as it declares, to do well by the working classes, would, I take it, be empowered to take all these questions into consideration when the valuation of the property is to be made. It seems to me that it is no argument at all to say that if the property owner says that he cannot do it, that the Government will step in and do it for him. Supposing that the proprietors of all the land in this country were to take the Government at their word and to do no valuation of their own, and to chance the valuation of the Government Commissioners and their assessments. How would it be possible to get the valuation of this country done in any time at all? I want to point out at the present moment if a person purchases an estate—and there are amongst the supporters of the Government one or two wealthy gentlemen who recently have purchased very large estates—I especially have in my recollection the late Chief Whip of the Liberal party, who has now been elevated to the Upper House—that in the purchase of that estate a valuer has to be appointed on each side. They have to go into the goodness of the land, the rental, the state of the buildings, farms, drainage, fencing, the water supply, leases which may be on the estate, the accessibility to a railway station, the roads, the value of the timber, the amenities of the district, etc. It takes months and months to get out all these things; to separate their values from the site values of the land, if it is possible indeed for them to do so. As regards the timber itself, I do not know whether the hon. Gentleman who is in charge of the Government. Bench at the present moment has ever had anything to do with the practical valuing of timber? Every tree has to be measured and its capacity has to be inquired into; how many cubic feet of wood there may be in it: it has to be valued according to the valuation of timber at the time, and it takes a very considerable time for that valuation to be made. Yet according to this Bill are to have the valuation of the land and the timber and all that is upon it made, and if that valuation is not done carefully then the unfortunate owner is, so the Chancellor of the Exchequer tells us, to suffer. If someone has a bit of land which he has valued for this taxation, and if the valuer makes any mistakes, then the unfortunate person is to be mulcted according to the amount of the mistake. I hardly think this provision will be popular in this country, when it is understood, and I venture to say that the more light which is thrown upon it the more unpopular it will become. I am glad that up to the present time this Amendment has not been closured. We certainly have fared better than hon. Members who tried to speak on Part I. of the Bill, which was ruthlessly closured.
Order, order. The hon. Member is out of order in referring to the action which the House took on matters that have passed.
I thank the House for allowing me to say the few words I have said, and from my heart I support the Amendment which has been moved.
I only want to bring one point to the notice of the Attorney-General. It seems to me that unless the time asked for in this Amendment is given the position arrived at will be a perfectly ridiculous one. Clause 14 says that the Commissioners shall, as soon as may be after the passing of this Act, cause the valuation to be taken within 30 days. The passing of this Act, if it ever passes, will not be before next October. The Commissioners then may take some time to think, and the interval which must elapse will bring us close to next March or April. Then, in the event of a transfer of land or of a death between now and 30th April, or of a lease, a valuation is to be taken for the purpose of this increment, and the ridiculous result will be that we shall have two valuations in a very short space of time. I confess the Attorney-General may be able to get out of this difficulty, but if I understand the Bill, that is the position, I do not profess to understand it, and indeed, I would give a good deal to meet the man who does understand it. The hon. Member for Cambridge University (Mr. Rawlinson) has dwelt upon the difficulty of valuation. These valuations might be carried out if people were used to them. Land has to be valued separately from houses. In many cases the buildings will be worth nothing without the land, and, in many other cases, the land would be of little value without the buildings, but the only point I really want to bring to the notice of the right hon. Gentleman is the one with regard to the date for valuation, and I do say that a ridiculous position will be arrived at unless the time asked for is given.
If the Debate on this Amendment is to be taken as a fair sample of the Debates which we are to have on the Committee stage of this Bill, I look forward to the next four or five months with some considerable apprehension. I hope the speeches we have had from the Attorney-General and from the Chancellor of the Exchequer are not a fair sample of the kind of argument with which Amendments from this side will be met. How have they been met? We have asked that there shall be some short period of time before the imposition of taxation, during which valuation can be commenced. How has the Chancellor of the Exchequer dealt with that? When we questioned him in the course of the discussion of the financial Resolutions, he told us to wait for the Bill; when we came to the Bill, he told us to wait for the Committee stage; now, when we have reached the Committee stage, he tells us to wait for Clause 14. and he says this is a matter of detail. The Chancellor of the Exchequer will learn before he is much older that in the Committee stage of this Bill matters cannot be put aside on the ground that they are matters of detail. I do not know whether hon. Members opposite agree with the proposition that where you are going to tax a man on the amount ascertained by valuation you should make your valuation before you tax it. I understand hon. Members opposite hesitate to accept that proposition. May I put a more cautious one? Before you tax a man with a tax which rests essentially upon valuation, ought you not to see that the valuation is at any rate a possibility. That seems to be a modest proposition. Something less than two years for which we are asking is ridiculously inadequate for the suggested valuation, but at any rate gives time enough to show whether this valuation is a possibility or not. I am not discussing now the time it would take and the money it would cost either to the taxpayers or to the State, but I venture to suggest that before we have gone much further in these Debates it will begin to be apparent to hon. Members opposite and to people outside this House that, granted unlimited means and unlimited time, this suggested valuation is not feasible or possible in itself. It is absolutely novel. I venture to think it will be found that never in this country or in any other country has any valuation been asked in which valuers will be asked to do what they are asked to do under this Bill. I venture to say no valuer has ever before been asked to value a pasture field divested of the pasture.
The hon. and learned Member is going into the question of valuation. We are now dealing simply with the question of time.
I was endeavouring to show to the best of my ability the extreme difficulty which the Act was putting, having regard to the period of time, upon the valuers. There is one other ground upon which I support this Amendment. Has the Committee considered what will be the position of the taxpayer if this Amendment is not carried? I lay down the proposition that you ought not to tax a man if you can help it except upon a certainty, and upon a fixed and ascertained amount.
The question does not arise whether there should be a tax or not.
I wish to show what will be the position of the taxpayers. Clause 17, sub-section (4) has already been referred to by the Chancellor of the Exchequer, and it states what the position of the taxpayer will be if this Amendment is not carried. Whether the period be 30 days or longer, when the taxpayer has sent in his estimate he has to be taxed upon that until the amount of his ultimate liability has been finally determined, and that is to be when the Government valuers have had time to deal with his case, when the Government valuers have met the owner's valuers, and have failed to agree, and the appeal has been heard. Then, and not until then, will his liability be ascertained, and meantime he has to pay upon a mere assumption and without knowing whether at some future and remote time it may not be found that the State may have a larger and a further call upon him.
My observations on this Amendment will be confined to the subject of undeveloped urban land, and even further confined to undeveloped urban land in the neighbourhood of London. That is a part of the Question which appears most clearly in the object which has been set forward so often on behalf of this Bill, namely, that it is going to tend to cheapen land in the market, and to relieve overcrowding. Confining myself to the experience of such land, I can assure hon. Gentlemen opposite that I do not do so for any dialectical purpose. I have listened with perfect amazement to every argument that has been based upon the facility of the valuation of such land. The Lord Advocate is at home on this subject of the taxation of the land, but I am at home on the land itself, and all I can say is that I think the assumption that this task of valuing land is an easy one has arisen from another assumption, which is altogether an erroneous one, namely, that the greater part of undeveloped land around great towns and cities, and particularly around London, is land that has not been used for any other purpose, but is held up by the owner in the hope of getting a higher price when it is sold for building purposes. That is altogether an erroneous assumption.
That is going into the merits of the question as to whether land should be taxed or not, and that is a point which is not before the Committee. All we are considering is the question of the time.
I had no intention of going into the merits of the question as to whether such land should be taxed or not. I was only endeavouring to show that a great deal of the undeveloped urban land was of a nature which makes it far more difficult to value than other land, and, therefore, requires a much longer time than that which is given under this Bill or than that which is suggested by this Amendment. A great deal of that land is used for residential or quasi-residential purposes, and, being so used, there are various other users included in that purpose which greatly vary and diversify the condition of each piece of land, and which, therefore, makes the task of valuing it an enormously difficult one. I agree with my hon. Friend who has just spoken that the task is an impossible one, but to argue that point would probably be going beyond the limits of this Amendment, and, therefore, I confine myself to the statement that it is an extremely difficult task, that it will require great care, and much time for examination. I only need to quote an instance of property of this kind with which I am acquainted where the valuation was made by three different people, all of them as well qualified as anyone the Government would choose, and they have put upon the property values having the relation of the figures 1, 2, 3. Can it be pretended that where such cases are possible valuation is not an extremely difficult and prolonged task? There is one other reason why I think a greater time should be given before this tax is levied, and it is that so far as undeveloped land is concerned, if you value it now you are valuing during a slump which is the greatest ever known in the commodity which you are valuing. Therefore, to make your valuation at such a time is to give a purely hypothetical value to an article which I might go so far as to say has no value at all now for the purposes of building, which you cannot sell for that purpose—in fact, you cannot give it away for that purpose. To value this commodity at a time like that, and then to take its value at a subsequent period and to tax the owner one-fifth of the difference, is a process which is really opposed to business intelligence or commonsense, to say nothing of any ideas of justice. For these two reasons, firstly, that the task of valuing undeveloped urban land is one of great difficulty, for which there is absolutely no adequate provision of any kind in this Bill; and, secondly, because you are choosing a time for valuation which makes that valuation absolutely absurd, I shall certainly vote in favour of any Amendment which will prolong the time.
I am disappointed that the Government should deal with this question in such a light-hearted fashion. No Member of the Government possesses such knowledge of the difficulties of the subject as the Lord Advocate. He and I had the honour of sitting on the Land Taxation (Scotland) Values Committee. One of the findings of that Committee was that valuation was necessary to taxation. Now we find that a Government which accepted the finding of that Committee has reversed that decision. This question is more involved than the average outsider thinks that it is. This is a most complicated clause. It is true that the Attorney-General referred to valuations which had taken place in America.
That is not the question before the Committee.
I desire, Sir, to bow to your ruling, but I am dealing with an illustration given by the Attorney-General this afternoon. It is a very easy task to value a site which is unbuilt on, but quite a different thing to deal with other land. There was great difficulty in valuing land in Ireland. A most expensive Government Department was set up, and it is still at work at a cost of £200,000 per annum. Yet we are asked by this Bill to agree that land for the first time in England, Scotland, and Wales can be valued within the compass of 30 days. It seems to me that the Members of the Government have not clearly thought out the proposal. I hope that the Government will accept the Amendment and give more reasonable time for the valuations.
I know of a building which cost a large sum of money and which was for many years a financial failure. It fell into other hands and became a financial success. I am not going into the merits of that case, but it took eight months to settle the question of the value of the building. The best valuers were employed with reference to Olympia. Let us come to the question of the White City. The land was taken from the Ecclesiastical Commissioners. It consisted of 200 acres, which for the last 100 years had been used as brickfields. The result was that the level of the ground was below the ordinary ground of the surrounding country. That land was filled up by soil from the various tube railways and made up to the proper level. Made land of that kind is not valuable at all for building purposes. The result is that there is a hot-contested suit going on with regard to the rateable value of that land. I mention this for the purpose of showing how long the time is to arrive at the value of land. These things show the difficulty which arises. There is no longer an Anglo-French Exhibition at that place. It is, if I may say so without offence, an ordinary kind of exhibition. The majority of the Colonies which had spent considerable sums of money in building houses, said they did not require them any further; they left them on the land; they did not even trouble to take them down. The question is, what is the value of that site for rating purposes? [Cries of "Order, order."] I want to get at the time it takes to arrive at the rateable values. Here in this case again we have had the Borough Council, with the rates behind it, in a position to engage first-rate experts for the purpose of saying what the value ought to be. The owners of the White City also engaged experts at fees ranging from £250 to £300.
I think the hon. Member is going too much into detail in regard to this matter.
I only want to point out the time it takes in getting up the complicated facts which have to be dealt with before a fair and equitable arrangement can be come to as to what is the value of the property. Now the third case with which I wish to deal is the valuation of some of the large London squares. I have one or two in my mind belonging to big building estates. Long leases were granted to a particular builder, who had regular plans of the estate, and in order to increase the value of the houses gardens were mapped out in the midst of the squares, and leases were granted for those particular gardens, the rent and the upkeep being paid by the persons who bought the houses to the intermediate landlord, who, on his part, undertook to keep the gardens in proper order and see that they were not built upon. I submit it will take a very long time to ascertain what is the value of that undeveloped land. It is quite clear that the man who granted the lease cannot build on it. It is equally clear that the inhabitants of the surrounding houses cannot build on it, and I say that this is a case in which it is absolutely idle to think for one single moment of calling on anyone to arrive at the value of the gardens within a space of thirty days.
We have had only three attempts at anything like a reply to the arguments which have been urged in this discussion, and I should like to call attention to the fact that at this moment there is not a single representative of the Treasury on the Front Bench. The Attorney-General, it is true, has been making a reply, and I should like to make one or two observations in answer to what he has said. He based his objection to the acceptance of this Amendment on two arguments. First of all he said it would not be necessary to make this valuation in the course of 30 days; but then he admitted that under the clause it was provided that the Commissioners " shall, as soon as may be, after the passing of the Act, call upon the owners," etc. It is also provided that the Commissioners shall call upon them to make the return within a time, not being less than 30 days. He seemed to think that that would not be insisted upon, and that we may trust to luck and to the benevolent administration of the Act as a sufficient assurance against being called upon to do what is practically impossible. Then the right hon. Gentleman went on to say that, after all, the difficulty was not great, and that the valuation which the owners were called upon to make was quite a simple valuation of site values. May I point cut to the hon. and learned Gentleman that in Clause 16 the Commissioners are called upon to ask for a return from the land-owners declaring the total value and the site value respectively? The fact is, no man in his senses who owned land would attempt, under any consideration, to value it except through an expert, and the real difficulty that is likely to arise will be created by the fact that the amount of land to be valued is practically limited only by the sea-shore, while the number of experts available for valuation purposes is very limited, and, of course, the larger landowners will naturally get the first claim upon their services. You are not only making upon land-owners a demand which cannot be carried out, but you are inflicting upon the small owners a demand which is distinctly unfair as compared with that which you make on the large owners.
I hope we shall have some further explanation upon the point which has been brought before the Committee by my hon. and right hon. Friends. No explanation which has hitherto been attempted has been wholly successful. The Attorney-General disposed of the matter by saying that what was de- manded was so very simple, as was shown by the experience gained in America.
I did not say it was simple.
Then the hon. and learned Gentleman made no answer at all. I thought the bearing of his observations was that my hon. Friends had greatly exaggerated the complexity and difficulty of the matter, and that what was asked was a very simple operation, as was shown by the experience of America, where it had been carried out in an incredibly short space of time at an incredibly small expense. But why was that the case? It was because there was already a valuation in existence, and all that had to be done was for the city authorities to go through their books and take out the separate figures. But it is a very much more difficult thing which has to be got through here. Whatever merit that argument has was disposed of by my hon. and learned Friend the Member for Kingston (Mr. Cave), when he pointed out that owing to the nature of the tax collected in America it was immaterial whether the tax collection in a particular locality was high or low or above or beneath the actual value of the property, because as every property in the area was valued on the same scale of payment, which had to be apportioned among the taxed property—one equal apportionment, whether the scale of valuation was high or low—each separate parcel bore the same relation to every other parcel, and therefore paid the same proportion of the total sum which had to be raised, as it would have done if the valuation had been far more exactly adjusted to the circumstances of each case. That entirely differentiates the American case from ours. Here every land-owner is to be called upon as a preliminary to this taxation to value not his estate, but every separate parcel of his estate which is under separate occupation, and if the Commissioners choose so to order they may insist that he should not only value every separate occupation separately, but he should divide up each single occupation into as many pieces as they like and submit a separate valuation for each one. That is work which has got to be done immediately after the passing of this Act—it has to be started immediately after the passing of this Bill unless our Amendment is carried—and is to be concluded within whatever time, not less than 30 days, may seem to the Commissioners a reasonable limit of time to allow to the owner. He has to take each separate parcel if it is separately occupied, or each portion of the parcel if the Commissioners shall require it, divest it of everything that is on it or under it, and return its total site value. A more complicated, a more difficult problem could not be set to any valuer. I do not like to talk as disrespectfully of valuers as the Attorney-General did the other day when he observed that you could always get a valuation put upon anything. It was only a question of paying for it.
I did not say that.
If the hon. and learned Gentleman did not make that observation, I certainly do not want to attribute to him anything he did not say, but it was an observation which my right hon. Friend commented on at that time, and which came from the Government Bench. It was said that you could easily get a valuation, but the difficulty was the amount of the valuation depended upon who paid the valuer—according as to whether it was the seller or the purchaser of the particular plot who employed the valuer, there was infinite room for a variety of prices among these valuers. That is exactly the same in this connection, between the owner and the taxation authority, and all thin complicated work has to be done within this minimum of time, unless the Commissioners choose to expand it. Is that a reasonable proposition? Is it a practicable proposition, and to what results does it lead? The Chancellor of the Exchequer said my hon. Friends were quite wrong in supposing that any hardship could result to the owner from his failure to make the valuation as rapidly as was expected of him. He pointed to section 17, sub-section (4) which some of my hon. Friends have been rather sharply pulled up for referring to this evening, in order to justify the original criticism and to show that this was no answer whatever to the case which my right hon. Friend outlined, namely, the case where a failure has been made by the owner, or the value has not yet been agreed with the Commissioners, and when the matter is unsettled between the two parties. The case we have put is that the owner may be unable to make his valuation in the time allowed to him. There- upon your Bill says that if he has not made a valuation the Commissioners may make whatever valuation they please, and that henceforth that is the valuation, and no appeal shall be made from their judgment. I do not want to speak in hard terms of the Commissioners, but we must in this connection remember that the Commissioners are men not one of whom has any experience of or training in valuation. They have been selected for quite different purposes and to carry out quite different views, and yet it is these men who will absolutely fix the valuation if the owner of the property cannot get it done before the time allowed.
The discussion has gone on as if the only person who would make the valuation in the first instance was the owner, and as if the only person who would be affected by the valuation was also the owner of the fee simple, but as I read the Bill it is not so. In certain cases the owner would not make a valuation at all but the leaseholder, and wherever there is an owner, a leaseholder, or any other person interested in the land, or in a portion of the land, the valuation may be made by the owner or by the leaseholder, as the case may be, and if agreed to by the Commissioners, is binding upon every other interest concerned. Is that so, or is it not? I ask the Attorney-General or the Chancellor of the Exchequer, knowing how complicated the Bill is, and that I am a layman, to make that clear. Clause 1 imposes the tax, not only upon land but upon any interest in land, and from the definition clause attached to this part of the Bill the expression "owner" means a person entitled to the freehold of the land, except in certain circumstances; but under those circumstances the lessee of the land is to be substituted for the freeholder. I read that to mean, that in certain cases the owner of the fee simple will make a valuation, which will govern the tax to be laid upon the leaseholder, and that in certain other cases the leaseholder will make the valuation which will be binding upon the owner, and that this will be settled between either the leaseholder or the owner and the Commissioners, without, as far as I can make out, the other party having any knowledge of what is going on. He can nowhere come in, he is nowhere given any notice, he is not entitled to see the valuation which is submitted, but is entirely bound by it and taxed upon it after it has been settled. That is the Bill as it stands, that is the Bill of the Chancellor of the Exchequer as drawn, and I venture to say it is intolerable, and you cannot leave it so. At once that alters the length of time that it is reasonable to allow for this valuation to be made. If only one person is concerned and affected by the tax a certain amount of time is reasonable; but if he, when he has made up his mind to submit his valuation to another person who is also interested and affected by the tax, you must double the time in order that that person may also employ his expert to see that he is not damnified by a wrongful or inequitable valuation. I submit that I have correctly stated the effect of the Bill. The Chancellor of the Exchequer shakes his head. If I have not, I beg that he will inform me in what I have mis-stated it.
The only challenge I made to the right hon. Gentleman's observation was that I cannot discuss the point which he invites me to discuss at this moment. He is inviting me to discuss page 18, Clause 27. If the right hon. Gentleman asks me the question, the reason is that where a man has a lease of which 50 years is unexpired he has substantially the whole of the interest in the land.
I did not invite the right hon. Gentleman to discuss the propriety of the arrangement which he had subsequently made. As he has done so, I am bound at once to challenge the reason he has given. I have a reversion 60 years hence to a certain property. When I get it I have to pay this increment duty on it, but the starting point of the increment has to be fixed without reference to me at the will of a tenant of mine, who need not communicate to me what he is doing. That is an absurd pro position, which at the proper time we will discuss, but that is not what I am asking the right hon. Gentleman to discuss. I thought he challenged my statement of what the Bill did. He admits that in certain cases the landlord will give a valuation, which will be the starting point of a tax to be collected from the tenant as well as from himself, and that in other cases the tenant will give a valuation which will be the starting point and the measure of the tax to be collected from the landlord as well as himself, and that he has made no provision for allowing each of them to see what the other does or to have any locus standi with the Commissioners as to whether the proposal which the other has made is reasonable. That is in itself an additional reason to all which have been urged for not hurrying this tax into force in the way which is proposed, and for allowing a longer interval of time for the valuation and the complicated details of graduation to be settled, and all the interested parties to be heard, which is sought, in some measure at any rate, to be accorded in the Amendment. I hope we shall hear from the Government whether they think it possible that they should, within this short time, get not merely what we have discussed, the opinion and valuation of one of the parties interested, but the opinion and valuation of all the parties interested, which it is absolutely necessary that we should have.
rose in his place and claimed to move: "That the Question be now put."
Question put: "That the Question be now put."
The Committee divided: Ayes, 262; Noes, 100.
Division No. 180.] AYES. [9.55 p.m. Agar-Robartes, Hon. T. C. R. Bellairs, Carlyon Burt, Rt. Hon. Thomas Agnew, George William Benn, Sir J. Williams (Devonport) Buxton, Rt. Hon. Sydney Charles Allen, A. Acland (Christchurch) Benn, W. (Tower Hamlets, St. Geo.) Byles, William Pollard Allen, Charles P. (Stroud) Berridge, T. H. D. Cameron, Robert Armitage, R. Bethell, T. R. (Essex, Maldon) Carr-Gomm, H. W. Armstrong, W. C. Heaton Birrell, Rt. Hon. Augustine Causton, Rt. Hon. Richard Knight Ashton, Thomas Gair Black, Arthur W. Cawley, Sir Frederick Asquith, Rt. Hon. Herbert Henry Boulton, A. C. F. Channing, Sir Francis Allston Astbury, John Meir Bramsdon, T. A. Cheetham, John Frederick Baker, Sir John (Portsmouth) Branch, James Cherry, Rt. Hon. R. R. Baker, Joseph A. (Finsbury, E.) Brigg, John Cleland, J. W. Balfour, Robert (Lanark) Bright, J. A. Clough, William Baring, Godfrey (Isle of Wight) Brocklehurst, W. B. Cobbold, Felix Thornley Barker, Sir John Brooke, Stopford Collins, Stephen (Lambeth) Barlow, Sir John E. (Somerset) Brunner, J. F. L. (Lancs., Leigh) Collins, Sir Wm. J. (St. Pancras, W.) Barlow, Percy (Bedford) Brunner, Rt. Hon. Sir J. T. (Cheshire) Corbett, C. H. (Sussex, E. Grinstead) Barnard, E. B. Bryce, J. Annan Cornwall, Sir Edwin A. Barnes, G. N. Buckmaster, Stanley O. Cotton, Sir H. J. S. Beck, A. Cecil Burns, Rt. Hon. John Crooks, William Bell, Richard Burnyeat, W. J. D. Crossley, William Davies, David (Montgomery Co.) Lamont, Norman Rogers, F. E. Newman Davies, Ellis William (Eifion) Layland-Barrett, Sir Francis Rowlands, J. Davies, Timothy (Fulham) Leese, Sir Joseph F. (Accrington) Russell, Rt. Hon. T. W. Dickinson. W. H. (St. Pancras, N.) Lehmann, R. C. Rutherford, V. H. (Brentford) Dickson-Poynder, Sir John P. Lever, A. Levy (Essex, Harwich) Samuel, Rt. Hon. H. L. (Cleveland) Dilke, Rt. Hon. Sir Charles Levy, Sir Maurice Scarisbrick, T. T. L. Dobson, Thomas W. Lewis, John Herbert Schwann, C. Puncan (Hyde) Duncan, C. (Barrow-in-Furness) Lloyd-George, Rt. Hon. David Schwann, Sir C. E. (Manchester) Duncan, J. Hastings (York, Otley) Luttrell, Hugh Fownes Scott, A. H. (Ashton-under-Lyne) Dunn, A. Edward (Camborne) Lyell, Charles Henry Seaverns, J. H Dunne, Major E. Martin (Walsall) Lynch, H. B Seddon, J. Edwards, Sir Francis (Radnor) Macdonald, J. R (Leicester) Shackleton, David James Essex, R. W. Macdonald, J. M. (Falkirk Burghs) Shipman, Dr. John G. Esslemont, George Birnie Mackarness, Frederic C. Smeaton, Donald Mackenzie Evans, Sir S. T. Maclean, Donald Snowden, P. Everett, R. Lacey Macnamara, Dr. Thomas J. Soames, Arthur Wellesley Fenwick, Charles M'Calium, John M. Soares, Ernest J. Findlay, Alexander McKenna, Rt. Hon. Reginald Spicer, Sir Albert Foster, Rt. Hon. Sir Walter M'Laren, H. D. (Stafford, W.) Stanger, H. Y. Fuller, John Michael F. Maddison, Frederick Stanley, Albert (Staffs, N.W.) Fullerton, Hugh Mallet, Charles E. Steadman, W. C. Furness, Sir Christopher Manfield, Harry (Northants) Stewart-Smith, D. (Kendal) Gibb, James (Harrow) Markham, Arthur Basil Straus. B. S. (Mile End) Glen-Coats, Sir T. (Renfrew, W.) Marnham, F. J. Taylor, John W. (Durham) Glover, Thomas Massie, J. Taylor, Theodore C. (Radcliffe) Goddard, Sir Daniel Ford Masterman, C. F. G. Tennant, H. J. (Berwickshire) Gooch, George Peabody (Bath) Menzies, Walter Thomasson, Franklin Greenwood, G. (Peterborough) Micklem, Nathaniel Thompson, J. W. H. (Somerset, E.) Griffith, Ellis J. Molteno. Percy Alport Thorne, G. R. (Wolverhampton) Harcourt, Rt Hon. L. (Rossendale) Mond, A. Thorne, William (West Ham) Harcourt, Robert V. (Montrose) Morgan, J. Lloyd (Carmarthen) Tomkinson, James Hardy, George A. (Suffolk) Morrell, Philip Toulmin, George Harmsworth, Cecil B. (Worcester) Morton, Alpheus Cleophas Trevelyan, Charles Philips Harmsworth, R. L. (Caithness-sh.) Myer, Horatio Ure, Rt. Hon. Alexander Hart-Davies, T. Napier, T. B. Verney, F. W. Harvey, A. G. C. (Rochdale) Nicholson, Charles N. (Doncaster) Vivian, Henry Harvey, W. E. (Derbyshire, N.E.) Norman, Sir Henry Walsh, Stephen Harwood, George Norton, Captain Cecil William Walters, John Tudor Haslam, Lewis (Monmouth) Nussey, Thomas Willans Walton, Joseph Haworth, Arthur A. Nuttall, Harry Wardle, Georg. J. Hedges, A. Paget O'Donnell, C. J. (Walworth) Warner, Thomas Courtenay T. Helm, Norval Watson O'Grady, J. Wason, Rt. Hon E. (Clackmannan) Hemmerde, Edward George Parker, James (Halifax) Wason, John Cathcart (Orkney) Henderson, J. McD. (Aberdeen, W.) Partington, Oswald Waterlow, D. S. Henry, Charles S. Pearce, Robert (Staffs, Leek) Watt, Henry A. Herbert, T. Arnold (Wycombe) Pearce, William (Limehouse) Wedgwood, Josiah C. Higham, John Sharp Pearson, W. H. M. (Suffolk, Eye) Weir, James Galloway Hobart, Sir Robert Fickersgill, Edward Hare White, Sir George (Norfolk) Hobhouse, Charles E. H. Pirie, Duncan V. White, J. Dundas (Dumbartonshire) Holt, Richard Durning Pointer, J. White, Sir Luke (York, E R.) Hooper, A. G Pollard, Dr. G. H. Whitehead, Rowland Horniman, Emslie John Ponsonby, Arthur A. W. H. Whitley, John Henry (Halifax) Horridge, Thomas Gardner Price, C. E. (Edinburgh, Central) Wiles, Thomas Hyde, Clarendon G. Price, Sir Robert J. (Norfolk, E.) Wilkie, Alexander Illingworth, Percy H. Priestley, Arthur (Grantham) Williams, W. Llewelyn (Carmarthen) Jackson, R. S. Priestley, W. E. B. (Bradford, E.) Williams, A Osmond (Merioneth) Jardine, Sir J. Radford, G. H Wills, Arthur Waiters Johnson, John (Gateshead) Rainy, A. Rolland Wilson, John (Durham, Mid) Johnson, W. (Nuneaton) Raphael, Herbert H. Wilson, J. W. (Worcestershire, N.) Jones, Sir D. Brynmor (Swansea) Rea, Walter Russell (Scarborough) Wilson, P. W. (St. Pancras, S.) Jones, Leif (Appleby) Rendall, Athelstan Wilson, W. T. (Westhoughton) Jones, William (Carnarvonshire) Richards, T. F. (Wolverhampton, W.) Wirtrey, R. Jewett, F. W Roberts, Charles H. (Lincoln) Wood, T. M'Kinnon Kelley, Gecrge D. Roberts, G. H. (Norwich) Yoxall, James Henry King, Alfred John (Knutsford) Robertson, J. M. (Tyneside) Laidlaw, Robert Robinson, S. TELLERS FOR THE AYES. —Mr.—Mr. Lamb, Edmund G. (Leominster) Robson, Sir William Snowdon Joseph Pease and the Master of Lamb, Ernest H. (Rochester) Roch, Walter F. (Pembroke) Elibank Lambert, George Roe, Sir Thomas
NOES. Anson, Sir William Reynell Bignold, Sir Arthur Cochrane, Hon. Thomas H. A. E. Arkwright, John Stanhope Bowles, G. Stewart Craig, Captain James (Down, E.) Ashley, W. W. Bridgeman, W. Clive Craik, Sir Henry Balcarres, Lord Bull, Sir William James Dickson, Rt. Hon. C. Scott. Baldwin, Stanley Campbell, Rt. Hon. J. H. M. Douglas, Rt. Hon. A. Akers- Balfour, Rt. Hon. A. J. (City, Lond.) Carlile, E. Hildred Du Cres, Arthur Banbury, Sir Frederick George Carson, Rt. Hon. Sir Edward H. Duncan, Robert (Lanark, Govan) Baring, Capt. Hon. G. (Winchester) Cave, George Faber. Capt. W. V. (Hants, W.) Barrie, H. T. (Londonderry, N.) Chamberlain, Rt. Hon. J. A. (Worc'r.) Fardell, Sir T. George Beach, Hon. Michael Hugh Hicks Clive, Percy Archer Fell, Arthur Beckett, Hon. Gervase Coates, Major E. F. (Lewisham) Fletcher, J. S. Forster, Henry William M'Arthur, Charles Rutherford, John (Lancashire) Foster, P. S. Magnus, Sir Philip Rutherford, W. W. (Liverpool) Gardner, Ernest Mason, James F. (Windsor) Salter, Arthur Clavell Goochn, Henry Cubitt (Peckham) Middlemore, John Throgmorton Sandys, Col. Thos. Myles Gretton, John Mildmay, Francis Bingham Sheffield, Sir Berkeley George D. Guinness, Hon. R. (Haggerston) Morpeth, Viscount Smith, F. E. (Liverpool, Walton) Guinness, W. E. (Bury St. Edmunds) Morrison-Bell, Captain Stanier, Beville Hamilton, Marquess of Newdegate, F. A. Starkey, John R. Harrison-Broadley, H. B. Nicholson, Wm. G. (Petersfield) Stone, Sir Benjamin Hay, Hon. Claude George Oddy, John James Talbot, Lord E. (Chichester) Hill, Sir Clement Parkes, Ebenezer Talbot, Rt. Hon. J. G. (Oxford Univ.) Hope, James Fitzalan (Sheffield) Pease, Herbert Pike (Darlington) Thomson, W Mitchell-(Lanark) Hunt, Rowland Peel, Hon. W. R. W. Tuke, Sir John Batty Kennaway, Rt. Hon. Sir John H. Percy, Earl Walker, Col. W H. (Lancashire) King, Sir Henry Seymour (Hull) Powell, Sir Francis Sharp Walrond. Hon. Lionel Lambton, Hon. Frederick William Pretyman, E. G. Warde, Col. C. E. (Kent, Mid.) Lee, Arthur H. (Hants, Fareham) Randles, Sir John Scurrah Williams, Col. R. (Dorset, W.) Lockwood, Rt Hon. Lt.-Col. A. R. Rawlinson, John Frederick Peel Winterton, Earl Long, Col. Charles W. (Evesham) Remnant, James Farquharson Younger, George Long, Rt. Hon. Walter (Dublin, S.) Renwick, George Lonsdale, John Brownlee Ridsdale, E. A. TELLERS FOR THE NOES. —Sir—Sir Lowe, Sir Francis William Roberts, S. (Sheffield, Ecclesall) A. Acland-Hoed and Viscount Lytteiton, Rt. Hon. Alfred Ronaldshay, Earl of Valentia. MacCaw, Wm. J. MacGeagh Ropner, Colonel Sir Rcbert
Question put accordingly: " That those words be there inserted."
The Committee divided: Ayes, 102; Noes, 318.
Division No. 181.] AYES. [10.5 p.m. Acland-Hood, Rt. Hon. Sir Alex. F. Fletcher, J. S. Pease, Herbert Pike (Darlington) Anson, Sir William Reynell Foster, P. S. Peel, Hon. W. R. W. Arkwright, John Stanhope Gardner, Ernest Percy, Earl Ashley, W. W. Gooch, Henry Cubitt (Peckham) Pretyman, E. G. Balcarres, Lord Gretton, John Randles, Sir John Scurrah Baldwin, Stanley Guinness, Hon. R. (Haggerston) Rawlinson, John Frederick Peel Balfour, Rt. Hon. A. J. (City, Lond.) Guinness, W. E. (Bury St. Edmunds) Remnant, James Farquharson Banbury, Sir Frederick George Hamilton, Marquess of Renwick, George Baring, Capt. Hon. G. (Winchester) Harrison-Broadley, H. B. Roberts, S. (Sheffield, Ecclesall) Barrie, H. T. (Londonderry, N.) Hay, Hon. Claude George Ronaldshay. Earl of Beach, Hon. Michael Hugh Hicks Hill, Sir Clement Ropner, Colonel Sir Robert Beckett, Hon. Gervase Hope, James Fitzalan (Sheffield) Rutherford, John (Lancashire) Bignold, Sir Arthur Hunt, Rowland Rutherford, W. W. (Liverpool) Bowles, G. Stewart Kennaway, Rt Hon. Sir John H. Salter, Arthur Clavell Bridgeman, W. Clive King, Sir Henry Seymour (Hull) Sandys, Col. Thos. Myles Bull, Sir William James Lambton, Hon. Frederick William Sheffield, Sir Berkeley George D. Campbell, Rt. Hon. J. H. M. Lee, Arthur H. (Hants, Fareham) Smith, F. E. (Liverpool, Walton) Carlile, E. Hildred Lockwood, Rt. Hon. Lt.-Col. A. R. Stanier, Beville Carson, Rt. Hon Sir Edward H. Long, Col. Charles W. (Evesham) Starkey, John R. Cave, George Long, Rt. Hon. Walter (Dublin, S.) stone, Sir Benjamin Chamberlain, Rt. Hon. J. A. (Worc'r.) Lonsdale, John Brownlee Talbot, Lord E. (Chichester) Clive, Percy Archer Lowe, Sir Francis William Talbot, Rt. Hon. J. G. (Oxford Univ.) Coates, Major E. F. (Lewisham) Lyttelton, Rt. Hon. Alfred Thomson, W. Mitchell-(Lanark) Cochrane, Hon. Thomas H. A. E. MacCaw, Wm. J. MacGeagh Tuke, Sir John Batty Craig, Charles Curtis (Antrim, S.) M'Arthur, Charles Walker, Col. W. H. (Lancashire) Craig, Captain James (Down, E.) Magnus, Sir Philip Walrond, Hon. Lionel Craik, Sir Henry Mason, James F. (Windsor) Warde, Col. C. E. (Kent, Mid) Davies, David (Montgomery Co.) Middlemore, John Throgmorton Williams, Col. R. (Dorset, W.) Dickson, Rt. Hon. C. Scott- Mildmay, Francis Bingham Willoughby de Crosby, Lord Douglas, Rt. Hon. A. Akers- Morpeth, Viscount Winterton, Earl Du Cros, Arthur Morrison-Bell, Captain Wolff, Gustav Wilhelm Duncan, Robert (Lanark, Govan) Newdegate, F. A. Younger, George Faber, Capt. W. V. (Hants, W.) Nicholson, Wm. G. (Petersfield) Fardell, Sir T. George Oddy, John James TELLERS FOR THE AYES. —Viscount—Viscount Fell, Arthur Parkes, Ebenezer Valentia and Mr. H. W. Forster.
NOES. Abraham, W. (Cork, N.E.) Baker, Joseph A. (Finsbury, E.) Benn, Sir J. Williams (Devonport) Agar-Robartes, Hon. T. C. R. Balfour, Robert (Lanark) Benn, W. (Tower Hamlets, St. Geo.). Agnew, George William Baring, Godfrey (Isle of Wight) Berridge, T. H D. Allen, A. Acland (Christchurch) Barker, Sir John Bethell, T. R. (Essex, Maiden) Allen, Charles P. (Stroud) Barlow, Sir John E. (Somerset) Birrell, Rt. Hon. Augustine Ambrose, Robert Barlow, Percy (Bedford) Black, Arthur W. Armitage, R. Barnard, E. B. Boland, John Armstrong, W. C. Heaton Barnes, G. N. Boulton, A. C. F. Ashton, Thomas Gair Barry, E. (Cork, S.) Bramsdon, T. A. Asquith, Rt. Hon. Herbert Henry Beauchamp, E. Branch, James Astbury, John Meir Bell, Richard Brigg, John Baker, Sir John (Portsmouth) Bellairs, Canyon Bright, J. A. Brocklehurst, W. B. Haslam, Lewis (Monmouth) Nolan, Joseph Brooke, Stopford Haworth, Arthur A. Norman, Sir Henry Brunner, J. F. L. (Lancs., Leigh) Hayden, John Patrick Norton, Captain Cecil William Brunner, Rt. Hon. Sir J. T. (Cheshire) Hazleton, Richard Nussey, Thomas Willans Bryce, J. Annan Hedges, A. Paget Nuttall, Harry Buckmaster, Stanley O. Helme, Norval Watson O'Brien, K. (Tipperary, Mid) Burke, E. Haviland Hemmerde, Edward George O'Brien, Patrick (Kilkenny) Burns, Rt. Hon. John Henderson, J. McD. (Aberdeen, W.) O'Donnell, C. J. (Walworth) Burnyeat, W. J. D. Henry, Charles S. O'Grady, J. Burt, Rt. Hon. Thomas Herbert, T. Arnold (Wycombe) O'Kelly, Conor (Mayo, N.) Buxton, Rt. Hon. Sydney Charles Higham, Jonn Sharp O'Kelly, James (Roscommon, N.) Byles, William Pollard Hobart, Sir Robert O'Shaughnessy, P. J. Cameron, Robert Hobhouse, Charles E. H. Parker, James (Halifax) Carr-Gomm, H. W. Hogan, Michael Partington, Oswald Causton, Rt. Hon. Richard Knight Holden, E. Hopkinson Pearce, Robert (Staffs, Leek) Cawley, Sir Frederick Holt, Richard Durning Pearce, William (Limehouse) Chance, Frederick William Hooper, A. G. Pearson, W. H. M. (Suffolk, Eye) Chancing, Sir Francis Allston Horniman, Emslie John Philipps, Owen C. (Pembroke) Cheetham, John Frederick Horridge, Thomas Gardner Philips, John (Longford, S.) Cherry, Rt. Hon. R. R. Hyde, Clarendon G. Pickersgill, Edward Hare Clancy, John Joseph Illingworth, Percy H Pirie, Duncan V. Cleland, J. W. Jackson, R. S. Pointer J Clough, William Jardine, Sir J. Pollard, Dr. G H. Cabbold, Felix Thornley Johnson, John (Gateshead) Ponsonby, Arthur A. W. H. Collins, Stephen (Lambeth) Johnson, W. (Nuneaton) Power, Patrick Joseph Collins, Sir Wm. J. (St. Pancras, W.) Jones, Sir D. Brynmor (Swansea) Price, C. E. (Edinburgh, Central) Condon, Thomas Joseph Jones, Leif (Appleby) Price, Sir Robert J. (Norfolk, E.) Corbett, C. H. (Sussex, E. Grinstead) Jones, William (Carnarvonshire) Priestley, Arthur (Grantham) Cornwall, Sir Edwin A. Jowett, F. W. Priestley, W. E. B. (Bradford, E.) Cotton, Sir H. J. S. Joyce, Michael Radford, G. H. Cowan, W. H. Kavanagh, Walter M. Rainy, A. Rolland Crean, Eugene Kelley, George D. Raphael, Herbert H. Crooks, William Kennedy, Vincent Paul Rea, Walter Russell (Scarborough) Crossley, William J. Kilbride, Denis Redmond, John E. (Waterford) Cullinan, J. King, Alfred John (Knutsferd) Redmond, William (Clare) Davies, Ellis William (Eifion) Laidlaw, Robert Rendall, Athelstan Davies, Timothy (Fulham) Lamb, Edmund G. (Leominster) Richards, T. F. (Wolverhampton, W.) Delany, William Lamb, Ernest H. (Rochester) Ridsdale, E. A Dewar, Sir J. A. (Inverness-sh.) Lambert, George Roberts, Charles H. (Lincoln) Dickinson, W. H. (St. Pancras, N.) Lamont, Norman Roberts, G. H. (Norwich) Dickson-Poynder, Sir John P. Layland-Barrett, Sir Francis Robertson, J. M (Tyneside) Dilke, Rt. Hon Sir Charles Leese, Sir Joseph F. (Accrington) Robinson, S. Dobson, Thomas W. Lehmann, R. C. Robson, Sir William Snowdon Donelan, Captain A. Lever, A. Levy (Essex, Harwich) Roch, Walter F. (Pembroke) Duncan, C. (Barrow-in-Furness) Levy, Sir Maurice Roche, Augustine (Cork) Duncan, J. Hastings (York, Otley) Lewis, John Herbert Roche, John (Galway, East) Dunn, A. Edward (Camborne) Lloyd-George, Rt. Hon. David Roe, Sir Thomas Dunne, Major E. Martin (Walsall) Lundon, T. Rogers, F. E. Newman Edwards, A. Clement (Denbigh) Luttrell, Hugh Fownes Rose, Charles Day Edwards, Sir Francis (Radnor) Lyell, Charles Henry Rowlands, J. Erskine, David C. Lynch, H. B Russell, Rt. Hon. T. W. Essex, R. W Macdonald, J. R. (Leicester) Rutherford, V. H. (Brentford) Evans, Sir S. T. Macdonald, J. M. (Falkirk Burghs) Samuel, Rt. Hon. H. L. (Cleveland) Esslemont, George Birnie Mackarness, Frederic C. Scarisbrick, T. T. L. Everett, R. Lacey Maclean, Donald Schwann, C. Duncan (Hyde) Fenwick, Charles Macnamara, Dr. Thomas J. Schwann, Sir C. E. (Manchester) Ferguson, R. C. Munro MacNeill, John Gordon Swift Scott, A. H. (Ashton-under-Lyne) Ffrench, Peter MacVeagh, Jeremiah (Down, S.) Seaverns, J. H. Field, William MacVeigh, Charles (Donegal, E.) Seddon, J. Findlay, Alexander M'Callum, John M. Shackleton, David James Flynn, James Christopher McKenna, Rt. Hon. Reginald Sheehy, David Foster, Rt. Hon. Sir Walter M'Laren, H. D. (Stafford, W.) Shipman, Dr. John G. Freeman-Thomas, Freeman Maddison, Frederick Smeaton, Donald Mackenzie Fuller, John Michael F. Mallet, Charles E. Snowden, P. Fullerton, Hugh Manfield, Harry (Northants) Soames, Arthur Wellesley Furness, Sir Christopher Marknam. Arthur Basil Soares, Ernest J Gibb, James (Harrow) Marnham, F. J. Spicer, Sir Albert Ginnell, L. Massie, J. Stanger, H. Y. Glen-Coats, Sir T. (Renfrew, W.) Masterman, C. F. G. Stanley, Albert (Staffs, N.W.) Glover, Thomas Meehan, Francis E. (Leitrim, N.) Steadman, W. C. Goddard, Sir Daniel Ford Meehan, Patrick A. (Queen's Co.) Stewart-Smith, D. (Kendal) Gooch, George Peabody (Bath) Menzies, Walter Straus, B. S. (Mile End) Greenwood, G. (Peterborough) Kicklem, Nathaniel Taylor, John W (Durham) Griffith, Ellis J. Molteno, Percy Alport Taylor, Theodore C. (Radcliffe) Gwynn, Stephen Lucius Mond, A. Tennant, Sir Edward (Salisbury) Harcourt, Rt. Hon. L. (Rossendale) Montagu, Hon. E. S. Tennant, H. J. (Berwickshire) Harcourt, Robert V. (Montrose) Mooney, J. J. Thomasson, Franklin Hardy, George A. (Suffolk) Morgan, J. Lloyd (Carmarthen) Thompson, J. W. H. (Somerset, E.) Harmsworth, Cecil B. (Worcester) Morrell, Philip Thorne, G. R. (Wolverhampton) Harmsworth, R. L. (Caithness-sh.) Morton, Alpheus Cleophas Thorne, William (West Ham) Hart-Davies, T. Myer, Horatio Tomkinson, James Harvey, A. G. C. (Rochdale) Nannetti, Joseph P. Toulmin, George Harvey, W. E. (Derbyshire, N. E.) Napier, T. B. Trevelyan, Charles Philips Harwood, George Nicholson, Charles N. (Doncaster) Ure, Rt. Hon Alexander Verney, F. W. Weir, James Galloway Wilson, J. W. (Worcestershire, N.) Vivian, Henry White, Sir George (Norfolk) Wilson, P. W. (St. Pancras, S.) Walsh, Stephen White, J. Dundas (Dumbartonshire) Wilson, W. T. (Westhoughton) Walters, John Tudor White, Sir Luke (York, E. R.) Winfrey, R. Walton, Joseph Whitehead, Rowland Wood, T. M'Kinnon Wardle, George J. Whitley, John Henry (Halifax) Yoxall, James Henry Warner, Thomas Courtenay T. Wiles, Thomas Wason, Rt. Hon. E. (Clackmannan) Wilkie, Alexander Wason, John Cathcart (Orkney) Williams, W. Llewelyn (Carmarthen) TELLERS FOR THE NOES. —Mr.—Mr. Waterlow, D. S. Williams, A. Osmond (Merioneth) Joseph Pease and the Master of Watt, Henry A. Wills, Arthur Walters Elibank. Wedgwood, Josiah C. Wilson, John (Durham, Mid)
The next Amendment which stands in the name of the hon. Member for Glasgow and Aberdeen Universities (Sir Henry Craik) is not in order as it is too indefinite.
Might I ask, as it is important to know, exactly what your ruling is. You rule the hon. Gentleman out not on the ground that the Amendment is in the wrong place, but that it is indefinite. Is not what is proposed here a most familiar usage in this House, and in that view can it be regarded as indefinite?
It is indefinite in this way that certain things are to be postponed until Parliament has determined something. Now the Committee has no power over the House, and that means practically postponing to an indefinite date which the Committee has no power to fix.
Do I understand it to be your view, as a rule of procedure in this Committee, that no Committee in the House of Commons can lay down that certain things cannot be done until Parliament has determined certain other things? I do not contest the ruling, if it is your ruling, but I should have thought that it was an extremely familiar practice of our legislation that certain things were not to be done until other things were done, and that if it is a familiar practice of our legislation it is competent for this Committee to do it.
I am not laying down any general ruling as the right hon. Gentleman has suggested, but what I am doing is this: I think it is so generally understood that it has been acknowledged by all parties in this House that an indefinite Amendment of this kind, that certain proposals were to wait until future legislation at an indefinite date was not allowed in Committee. I really have not got a precedent at my fingers ends at the moment, but I know that I have ruled it myself, and I know that other Chairmen have ruled it before me.
I would ask in what respect this Amendment which you have declared in your original ruling to be indefinite is indefinite, and, in the second place, I would ask if it is not in order in Committee would it be in order on a Report?
I have nothing to do with the Report.
In what respect is it indefinite?
It is indefinite in this sense. It is indefinite as to date. It has been ruled by previous Chairmen and also by myself that we cannot have a proposal postponed in this way to an indefinite date.
On a point of order. A case may possibly arise in the present Parliament. Suppose legislation came before us in connection with an international convention, would it be in order to move that the obligation imposed by the legislation upon British citizens should riot come into force until after the international convention had been ratified by other Governments, and would not that be at least equally indefinite but still an absolutely necessary power to retain in the hands of this House considering such a business?
When that point comes before me I shall make a ruling upon it. The next Amendments, in the names of the hon. Members for Tamworth (Mr. Newdegate), St. Albans (Mr. Carlile), and Hornsey (the Earl of Ronaldshay), come in under Clauses 16 and 17, and the next Amendment of the hon. Member for Windsor (Mr. J. F. Mason) I think belongs to Clause 2.
Will the right hon. Gentleman state why my Amendment should come on Clause 16 or Clause 17?
I have given the hon. Member that information as a matter of convenience and courtesy.
In reference to the Amendment in the name of my hon. Friend the Member for Windsor (Mr. Mason) to insert the words "the amount by which decrement is exceeded," I submit that it in fact alters the subject matter of the tax, and that the question must be raised at this point, otherwise we define the subject matter as it stands in the clause as against my hon. Friend.
I think Clause 2 would be the proper one on which to deal with this Amendment, and I am sure it can be raised there. It is a definition clause which deals with Amendments of the kind. The Amendment of the hon. Member for Ayr Burghs (Mr. Younger) is also out of order, and is a matter for Clause 2.
That is not my point. The resolution passed on the 12th May says:—"A duty on any increment value accruing after the said date" (30th April, 1909) "at the rate of one pound for every full five pounds of that value," and so on. There is nothing in that Resolution which binds you to levy the increment tax on the capital value. My point is that we should stick to our present system of taxation in this and other cases, and that the tax should be on the annual increment, and not on capital increment, which is very different.
The hon. Member has not sufficiently studied the Resolution. It says: "The duty to be taken on the occasion of the transfer, or the grant of a lease of the land, and on the occasion of the death of any person," etc. It is impossible on a Resolution like that to make the increment charge annual. The same remark as to place applies to the insertion of the words "rateable" and "hypothetical." If the latter word has any meaning, it should, like "rateable," be dealt with on Clause 2.
These are matters of very great importance, but I understand you to rule that we are unable to raise in any shape or form, or at any time, a proposal that the tax should be levied on the annual increment value, not levied annually on the increment but levied at the time stated in the Resolution on the annual increment instead of capital increment. If I may venture to say so, in defence of my raising the question again, I think from your answer you did not appreciate the particular point of my hon. Friend.
I specifically safeguarded that point. Provided we do not go beyond the terms of the Resolution, I am inclined to think that the point could be raised on Clause 2. I think the question as to unearned increment is in order here.
moved, after the words "there shall be charged, levied, and paid on the," to insert "unearned."
The right hon. Gentleman (Mr. Lloyd-George) has been pressed from time to time at question time as to the real meaning of the words "increment value." I can speak from the Irish point of view, but, at the same time, it appears to me that if the arguments hold good in one case they will undoubtedly hold good in the other. In Ireland land is held under entirely different tenure from that in England or Scotland, but, whether the man is a purchaser under the Land Act of 1903 or the other Acts, it is very important that he should know who is to be charged this extra duty, and also the title which is to apply. It is quite true that in Clause 2 there is a slight attempt made by the Government to define what this duty on land values really means; but in my opinion, and that of my colleagues, that definition is quite inadequate. On the introduction of the Budget, and on the second reading, the Chancellor of the Exchequer and the Attorney-General for England explained that the only duty that would be chargeable would be on unearned increment. There is nothing whatever in the Bill to carry out those statements—my Amendment will cover the point. If the charges which are to be made are levied on every increment value, there will be no end of charges that any land-owner—large or small—will have to pay. It is true that later on it is stated that part of the increment is attachable to the efforts or energy of the owners; but if the Government build a factory on a piece of land adjoining a property, large or small, there is nothing to explain whether the charge is to be on the earned or the unearned increment. In similar cases in Ireland it is extremely difficult to differentiate between what is due to the efforts of actual owners of the property and what to the development by the local authority or the Government. The Bill does not adequately distinguish between the two; the only safeguard is to insert the word "unearned." The Chief Secretary has not denied that this duty will fall upon small proprietors in Ireland who have bought their holdings under Land Purchase Acts. These men have entered into bargains, fixed on data arranged by inspectors, and now they are to be charged an increment duty on land in regard to which they thought every allowance had been made for local circumstances. The Chief Secretary ought to look into the matter. In the wording of the clause no differentiation is made in regard to tenure in any part of the United Kingdom. But if there is any arguable question at all, it is with regard to the different tenures in different districts. Hon. Members opposite seem to think that land is done up in parcels like pounds of tea, and can be dealt with in the same way. There is nothing more complicated than the local conditions attaching to the tenure of land, and though the Chancellor of the Exchequer in framing this clause may have had in view property in England or Scotland, he cannot possibly have had in mind the tenure of land in Ireland. There the tenants have purchased their holdings, in regard to which Government inspectors have said, "The value of the land, with improvements, etc., is so much, your payment, on the 68½ years' basis, will be such a sum." After having done all that, perhaps, within a year or six months, the right hon. Gentleman comes along, and says, "You have struck a bad bargain, because you did not count on the increment value of the farm." That is a point which requires most careful consideration by the right hon. Gentleman. I hope the sense of the Committee will be to run no risks with regard to the pernicious proposals of the right hon. Gentleman, and to see that at the very outset of this fight we are safeguarded. In the South and West of Ireland, I know, where they desire to purchase out their farms—as has been done to a large extent in the North of Ireland—this would also hit the tenants of farms who bought under the Act. I hope this Amendment will be carried, and that the Committee will see that it was unfair to start all of us discussing this enormously bulky Budget without having safeguarded the land-owners, large and small, of the country.
I have given the most careful attention to the remarks of the hon. and gallant Gentleman, and I am utterly at a loss to see by what argument he supports the insertion of the word "unearned." He seems to think that it has some bearing on the agricultural question in Ireland. I really do not see the relevancy of this particular argument to that position. Subsequent clauses in the Bill safeguard other points he has implied. The mere insertion of the word "unearned," which is not a legal term, or, at all events, one used in political controversy, in an Act of Parliament, would not have the slightest effect. I cannot possibly accept the Amendment.
Do I understand the Government desire to tax the earned increment on land?
No, no.
If they only desire to tax unearned increment what justification is there for their refusal to accept this Amendment?
I only want to tax unearned increment, but I say this is not the way to do it. The way to do it is by specifically excluding anything in the nature of improvements made by the tenant or the landlord—any expenditure which he puts into the improvement of the land. The mere insertion of the word "unearned," would not carry out the intention the hon. and gallant Member has in his mind, and which it is the intention to carry out on a later clause of the Bill.
Surely the Government do not condemn altogether as otiose and unnecessary their own declaration. In all the Debates we have had upon the second reading the Government assured us time and again that their desire is to place an increment tax upon the accretion of a man's estate which comes into his possession through no act of his own, that is their policy. Then what is the objection to state the policy of the Government in the first effective clause of the Bill? I ask what the objection is, and the right hon. Gentleman states what he thinks his objection is. He says the objection is that by specific exclusion in a later clause of the Bill he will arrive at the same result. Surely the right hon. Gentleman must know there has been no more frequent subject of difficulty than the interpretation of Acts of Parliament on the grounds covered by specific exclusion. It is dangerous to proceed by specific exclusion, because if you exclude four or five things the presumption is raised you are not excluding the sixth. Surely it is the worst part to pursue to try and exclude specifically by Amendment in any clause of the Bill all that may be attributed to the energy of the landlord or the tenant. If there was a clear declara- tion of the Government's own policy in the forefront of the Bill that would aid interpretation in a matter difficult of interpretation, and which, so far as we can see, is to be left to the interpretation of laymen not learned in the law. It would be far better that the right hon. Gentleman should make his policy plain in the Bill.
The hon. and gallant Gentleman who moved the Amendment informed the Committee that he moved largely in the interests of the tenant purchasers of Ireland. I desire to say that, from the point of view of the tenant purchasers of Ireland, I entirely object to this Amendment. The view I take, and the view that is taken by my colleagues, is that agricultural land should be excluded altogether from the burden of these taxes. We intend to fight the best way we can to have that carried out in the clauses of the Bill. If the hon. and gallant Member's Amendment be accepted, it would only have effect so far as unearned increment is concerned, whereas we intend to press upon the Government to exclude all agricultural land from the operations of these new taxes. For that reason I object very strongly to this Amendment.
May I ask the hon. and learned Gentleman, for the sake of argument, if his Amendment later on is not carried would it not be better to have unearned increment in the Bill?
So far as that is concerned, in my opinion unearned increment is defined sufficiently in subsequent clauses, but I intend to do all I can to exempt the tenant purchasers of Ireland from any liability to either earned or unearned increment. One of the most serious things we shall have to consider is the very point that land in Ireland is increasing in value. The right hon. Gentleman has told us that for the last 20 or 30 years there has been no increase in the value of agricultural land in this country, but there has been an increase in the value of agricultural land in Ireland, and it will continue in the future. That increased value will be due not only to the industry and enterprise of the actual tenant purchaser himself, but, in my opinion, it will be due also to the general increase in the prosperity of Ireland which will spring from the carrying out of the policy of land purchase. I object to the tenant purchaser in the future being called upon to pay either on that portion of the increased value of the land which is due to his own individual exertions or that portion which is due to a general rise in the prosperity of the country. That is the view which the Nationalist party has taken, and we shall enforce that view by every means in our power. I could not, however, agree with the hon. and gallant Member's Amendment for the reasons I have given.
I think I can suggest to the Chancellor of the Exchequer two instances which would not be sufficiently safeguarded by the proposals which are to be inserted in this Bill later on. Take the case of an estate in the North of England sold unsuccessfully for a comparatively small sum to a man of much greater business aptitude than the original possessor. After holding that property for some four or five years this purchaser sells it again for double what he gave for it. During those four or five years there is no suggestion that he has done anything material to the property in the way of tangible improvements which would be considered as such under the provisions of this Bill, and yet owing to his greater skill or from some other cause he was able to obtain exactly double what the previous vendor got for it. Will that land be considered to have had an increment of 100 per cent. on its value, and is the owner to be taxed upon that increment, because, although he made no actual improvements, yet, in the proper sense of the word, he had earned it by selling the estate more successfully than the previous owner. I do not think the Chancellor of the Exchequer has safeguarded that point, and that is the sort of thing that happens in scores and hundreds of cases every year throughout England. As a matter of fact, the sale of an estate when the amount is large is very much a matter of accident as to whether there happens to be a purchaser in the field, and yet the increment value amounting to one-fifth of the whole amount is to be based upon this haphazard probability as to whether there is an actual demand. Take a different kind of estate. Take, for example, an estate created almost out of nothing, that is to say, land reclaimed from the fens or from the sea, or moss land which practically has no value whatever, and which is turned by the owner into good agricultural land. I am not at all sure that that land, if sold after any great length of time, would benefit by the exemptions of the Chancellor of the Ex- chequer with regard to improvements. It might be truthfully said that not only the increment, but the whole of that value, was actually created by the original owner who drained or reclaimed it, and any increment which took place in future, after the original reclamation, is due, not to increment, but to the exertions of the man who originally reclaimed it. It is because I believe that my hon. Friend does desire to protect owners who deserve protection that I give him my support.
I wish to say a few words on this Amendment, especially with reference to the speech delivered by the hon. and learned Member below the Gangway. He expresses his surprise at the Amendment, and he justifies his surprise by somewhat extraordinary reasons. The hon. and learned Gentleman said that my hon. Friend was running certain risks with regard to agricultural land. He is doing nothing of the kind. We are, I understand, to have the support of the hon. and learned Gentleman in the exemption of agricultural land, but the Government have not made it clear what their intention is. My hon. and gallant Friend proposes in regard to agricultural land that the increased tax shall be limited to increment which is unearned. Surely the Government does not propose to tax the increment which is the result of the care and industry of the individual? If the word "unearned" is not inserted the tax will be charged on the increment value. The matter will, therefore, be left to the discretion of the Commissioner.
It is not the intention of the Government to make any charge in respect of any improvement made by the landlord or the tenant.
In that case, why not put the word in? If that is the deliberate intention of the Government, why not put the word in? The insertion of the word would make it clear. The suggestion that the insertion of the word would prejudice agricultural land cannot be maintained. What we want to do is to make the object of the Government clear with reference to agricultural land. I am glad to hear from the remarks of the hon. and learned Gentleman below the Gangway that the legislation of this House with regard to land in Ireland has resulted in the happy conditions which he describes. It must be remembered there is land of the same kind running round towns in Ireland as well as in England, quite apart from agricultural lands, and in these cases it will be necessary to have these words, as the injustice may not be removed by a subsequent clause. This is but another example either of the inability or of the unwillingness of the Government to make clear in the Bill what they constantly assert to be their intention. Unless you insert the word "unearned" you will be exposing us to risks which are even more unjust and wrongful in their effect on land than you tell us you intend them to be. We simply ask you that the Bill shall be made clear and explicit, and shall state from the beginning what it really means.
Surely it is contrary to Parliamentary usage and practice to attempt a definition in two clauses. Whatever definition we insert now before the words "increment value" must be an imperfect definition. In Clause 2 nearly a. page and a half is devoted to explaining what is really meant by increment value, and it seems to me we are simply wasting time in trying to amplify a definition which can only be repeated in Clause 2. It can only hamper the Committee in its further decisions on this point.
The Chancellor of the Exchequer has told us that the unearned increment which he intends to tax is defined in Clause 2, and he has also suggested that the word it is proposed to insert is unscientific and not known in Acts of Parliament. But may I remind him that it is already used in regard to incomes. We have got a clear line drawn there, for the purpose of Income Tax, between earned income and unearned income, and therefore we have got this word in connection with a tax at present. The ground, therefore, that the right hon. Gentleman has given, that this word is not applicable for definition, is clearly shown to be wrong by his own Act of Parliament. If we put this word "unearned" in here, we, at all events, make it clear that the intentions of the Government are what they have always said, viz., to put a tax on unearned increment, and if we are left till Clause 2 to deal with this point we get into very serious difficulty at once. Suppose a man spends £100 on the painting of gates, or a house, it is quite possible he might get £300 more for that house. I take it that that £300 would be the increment, and all that he would be allowed to deduct in respect of that amount would be the £100 he spent. If, however, we put the wording unearned increment, it is clear that the man would not have to pay one-fifth of that £200, which is something which ought not to be taxed. I think I have said enough to show that there is a real necessity for the Government, if they are honest in this matter, and are only going to put a tax on unearned increment to accept the word, but if they are going to get in all other kinds of values, and are reserving all sorts of questions as to what should be allowed and what should not be allowed, it would be open to them in subsequent years to put charges upon owners of land, which would be shut out if they are honest now and put in the word "unearned," to which there is really no objection.
The point I wish to ask the Chancellor of the Exchequer is this: has the Scottish feuar, who takes his land from the landlord and pays a particular feu duty forever, which is not increased, and which in no way can be increased by the landlord, and who creates the whole of the increment value by putting up buildings, etc., on that land—has he to pay the tax? I am informed by those competent to judge that, according to the Bill, he will have to pay it. Scottish opinion is very much agitated on this matter. We are in a totally different position in Scotland from the landowner in England, to whom the whole thing reverts after a certain time, and I hope the right hon. Gentleman will be able to assure me and assure Scotland that in that particular case the feuar will not suffer, and, if so, I see no reason whatever why he should refuse these words.
The Chancellor of the Exchequer is objecting to the inclusion of this word "unearned" on the ground that it is not a term of art. The term unearned increment, though it may not yet have obtained its right to a place in Acts of Parliament, is a perfectly well known term, and occurs also in the works of John Stuart Mill, though he uses it in an accurate sense, and if you are going to take your suggestions and ideas out of the works of philosophers and economists, you ought to use the whole phrase, and not only a part of it. But I have an objection to this tax which is far larger than the question of a mere term of art. Certain improvements are to be taken out of the charge by a method of exemption. I object to that system altogether. When a Government is levying a tax it is for them to show that they have a right to levy it. It is not for them to say, "Take away the things you can show to be your improvements, and we will levy the tax on what remains." The onus ought to be upon the Government to show that it is a proper subject on which to levy the tax, and for that reason it is of the greatest importance that the word should be introduced. The right hon. Gentleman says in Clause 2: "You can make certain exemptions if you like." At the headlong hurry in which we are rushing through the Bill it is very difficult to think of all the possible exceptions which you can introduce in an Amendment. You are safeguarded if this Amendment is put in, because if by any lack of ingenuity on this side of the House any particular Amendment or exemption has been forgotten the unfortunate landowners will not be protected.
After all, would it not be a good thing at this stage for the Chancellor of the Exchequer to relieve the anxieties of the land-owners all over the Kingdom, because up to now they do not really know on what they are going to be taxed. But if you state at the inception of the Bill quite definitely that they will only be taxed on the unearned increment, though they will not like it their minds will be relieved, because, after all, they would never know that they might have to pay on some unexempted improvement which has not been introduced into Clause 2. I think it would be very valuable from the point of view of the Chancellor of the Exchequer himself, because it would enormously shorten the discussion when we come to Clause 2. In regard to Amendments claiming some alterations or improvements under Clause 2, it would not be necessary for the Chancellor of the Exchequer to make a speech on each, if it was quite clear that what was proposed was included in the general head of exemptions that ought to be made. It would not be necessary to discuss the whole Question over again if this Amendment were accepted. My hon. Friend has said that agricultural land would not be exempted. May I point out that there are Amendments on the Paper lower down of which hon. Friends and myself have given notice to exempt agricultural land?
One thing seems to be overlooked in the discussion of the Amendment. It seems to be always assumed by the Chancellor of the Exchequer and a large body of his supporters that the great bulk of the land in this country increases in value owing entirely to the efforts, ingenuity, and enterprise of the community. But, after all, there are a large number of estates which have fallen through bad management into very poor condition and of which the value at the present time is very insignificant. This may arise from the property being in the hands of owners who are possessed of other wealth, and who have, therefore, not taken the pains to keep up their rents at a high level and to see that they were properly collected. Another cause is that owners may have employed a large number of people on their estates and paid wages to them for work which they really did not perform. If they had given notice to some of those whom they employed they very likely would have been able to show better balance-sheets. There are many cases in this country of estates which have not been managed on an economic basis and which, if put under good management, would show a large increment in value. I am not sure but that we have actual returns lately issued by the President of the Board of Agriculture, who at present is looking after the estates of the Crown, showing that under his able management these estates are yielding a greater income than before. That result is largely owing to the exertions of the Noble Lord. Surely in those cases it is not the intention of the Government, where the increment value is due to the good management, enterprise, and industry of the manager or owner of the estate, to put the tax on the increment value? I cannot see any other way of making that clear except by inserting some such words as are contained in the Amendment. We all in this House know of cases of men who, looking after their business themselves, have turned an estate of very little value into a very valuable estate; and it seems to me perfectly impossible in any definition clause to lay down all the different circumstances which may obtain where an estate by the industry of its possessor has been largely increased in value. Therefore, especially in view of the boast of a Member of His Majesty's Government of having improved the value of the Crown estates, I think that there should be allowed all round an increment value for the industry, skill, and attention to business given by the owner of the property himself. I do not think that that can be safeguarded unless some such wording as that which is now proposed is inserted.
I hope that the right hon. Gentleman will not consent to the insertion of this particular word in this particular place. I express that hope for this reason. The word has already gained a certain meaning in connection with income through the Finance Act of 1907, where it is used not alone in connection with rent, but also in connection with interest. It is also recognised in the present Finance Bill, section 48, that the term earned applies to personal exertions, and the term unearned, as I have said, applies not only to rent, but also to interest. It must be obvious on a moment's reflection that the improvements made on a site may not be earned by the person who makes them. For example, the wonderful improvements made on a certain site by the late Mr. Whittaker Wright were clearly not earned by Mr. Whittaker Wright; and if the word unearned were inserted at that particular place it would lay down that in the opinion of this House the only form that unearned income can take is the form of rent. I object strongly to that definition, and, therefore, I object strongly to the insertion of this particular word at this particular place.
It seems to me, having listened to the very long discussion on the Budget, that the whole basis, the fundamental axiom underlying this particular tax, is unearned increment. We have heard on the other side day after day that the landlords of England are generally like some ogre over a piece of land which is gradually improving in value by nothing that they do themselves, but by the action of the community. If the hon. Member for Hanley (Mr. Enoch Edwards) were in the House to-night, he would gloat over the word. He would say: "That is the very tax we want to be put on. The Chancellor of the Exchequer should seize this opportunity of accepting the word unearned and showing us distinctly that it is the unearned increment, about which we heard so much, which we understood was really the foundation of this tax is really its foundation." If I were the Chancellor of the Exchequer, I would say: "That is what I am after—the increment to which the owner of the land has contributed absolutely nothing; the increment which he says has arisen from the action of the community, from the town growing up around his land." I may give some of my personal experience on this matter. I happen to have had some experience as a land agent myself. I have had the management of a large estate of some 15,000 acres for some years. I have had a great deal to do with this particular form of increment, whether you call it earned or unearned. In that estate I have named there has been an increment arising to some extent possibly from the needs of the community, and the land has gradually developed from agricultural land to building land. A portion of the increment has undoubtedly been owing to the action of the owner of the land in making various improvements, which it would be almost impossible to specify by means of the definitions under section 2 of this Bill. I am taking action with regard to adjoining land at the present moment. Large portions of land are increasing in value at the present moment because the owners of the estate are spending a large amount of money, not on the particular land which is increasing, but on other land adjoining. Here is a piece of land which may or may not come into building. On the adjoining land is being spent some thousands of pounds in laying it out for golf, which gives value to the adjoining land, which is not the particular land on which money is being spent. The land on which the money is being spent is not within 100 yards, but within half a mile or perhaps a mile of the land which is increasing in value. The right hon. Gentleman may say that the increase must bear Increment Duty, but surely that increment is not unearned increment, because the increment is due to the action of the same owner. I venture to suggest that the Chancellor of the Exchequer should accept the word "unearned."
I only rise because the right hon. Gentleman the Postmaster-General did not accept an explanation which I made. I will read the following extract from the Official Report:—
"I was very glad to hear, after a certain amount of coaching from the Prime Minister, the Postmaster-General answer an interruption which was made in the interest of the Scottish feuars. … I was interested and anxious to know whether a Scottish feuar was to pay the Government a toll on the increment lie himself created, and I was glad to hear the right hon. Gentleman assure me that it was the Government's intention in this proposal not to take any portion of the increment created by anyone, but only to take a toll on the increment going into the pocket of some person who did not create it.
"Mr. Hobhouse indicated assent.
"Mr. Younger: I am glad my hon. Friend nods in answer to that, because it will be interesting and satisfactory information to feuars in Scotland—
I think I have made my point that what, I said was strictly accurate, and I hope the Chancellor of the Exchequer will be kind enough to tell me now what he thinks.
I think what the hon. Gentleman referred to gives the view which I ventured to express in reply to the right hon. Gentleman the Leader of the Opposition who raised the question of feuars and superiors. I started by saying that my knowledge of Scottish laws was not great. The point of the right hon. Gentleman was that feuars and superiors let land for an indefinite term at a fixed rent, and I said that obviously in that case there would be no increment value, and that the superior would get back the land. I was not speaking of the feuar, I was speaking of the superior. If in my ignorance of Scottish law I was not clear I am sorry. I really think what he has read from the Official Report was quite clear, and shows that I was dealing with the superior and not the feuar.
What has occurred re calls to my mind the Committee stage of the University Bill last year. The cry all through on the benches opposite was that the tax in this case was on unearned increment, but the moment it is proposed to insert the word "unearned" the whole-Radical party is up in arms. Last year when I proposed to insert the word "undenominational" the whole of the Radical party was up in arms. It strikes me that if the arguments of the party through this Budget are to be dependent upon a few words from the Front Bench that they might just as well put the whole Question at once to-night.
Question put, "That the word 'unearned' be there inserted."
The Committee divided: Ayes, 110; Noes, 320.
Division No. 182.] AYES [11.25 p.m. Anson, Sir William Reynell Barrie, H. T. (Londonderry, N.) Cave, George Anstruther-Gray, Major Beach, Hon. Michael Hugh Hicks Cecil, Evelyn (Aston Manor) Arkwright, John Stanhope Bignold, Sir Arthur Chamberlain, Rt. Hon. J. A. (Worc'r.) Ashley, W. W. Bowles, G. Stewart Chaplain, Rt. Hon. Henry Balcarres, Lord Bridgeman, W. Clive Clive, Percy Archer Baldwin, Stanley Burdett-Coutts, W. Coates, Major E. F. (Lewisham) Balfour, Rt. Hon. A. J. (City, Lond.) Butcher, Samuel Henry Cochrane, Hon. Thomas H. A. E. Banbury, Sir Frederick George Campbell, Rt. Hon J. H. M. Craig, Charles Curtis (Antrim, S.) Baring, Capt. Hon. G. (Winchester) Carlile, E. Hildred Craig, Captain James (Down, E.) Craik, Sir Henry Law, Andrew Bonar (Dulwich) Ronaldshay, Earl of Dalrymple, Viscount Lockwood, Rt. Hon. Lt.-Col. A. R. Ropner, Colonel Sir Robert Dickson, Rt. Hon. C. Scott- Long, Col. Charles W. (Evesham) Rutherford, John (Lancashire) Douglas, Rt. Hon. A. Akers- Long, Rt. Hon. Walter (Dublin, S.) Rutherford, W. W. (Liverpool) Faber, Capt. W. V. (Hants, W.) Lonsdale, John Brownlee Salter, Arthur Clavell Fell, Arthur Lyttelton, Rt. Hon. Alfred Sandys, Col. Thos. Myles Fletcher, J. S. MacCaw, Wm. J. MacGeagh Scott, Sir S. (Marylebone, W.) Forster, Henry William M'Arthur, Charles Sheffield, Sir Berkeley George D. Foster, P. S. M'Calmont, Colonel James Smith, Abel H. (Hertford, East) Gardner, Ernest Magnus, Sir Philip Smith, Hen. W. F. D. (Strand) Gibbs, G. A. (Bristol, West) Mason, James F. (Windsor) Stanier, Beville Gooch, Henry Cubitt (Peckham) Meysey-Thompson, E. C. Starkey, John R. Goulding, Edward Alfred Middlemore, John Throgmorton Staveley-Hill, Henry (Staffordshire) Gretten, John Mildmay, Francis Bingham Talbot, Lord E. (Chichester) Guinness, Hon, R. (Haggerston) Morpeth, Viscount Thomson, W. Mitchell- (Lanark) Guinness, W. E. (Bury St. Edmunds) Morrison-Bell, Captain Thornton, Percy M. Hamilton, Marquess of Newdegate, F. A. Walker, Col. W. H. (Lancashire) Hardy, Laurence' (Kent, Ashford) Nicholson, Wm. G. (Petersfield) Walrond, Hon. Lionel Harrison-Broadley, H. B. Oddy, John James Warde, Col. C. E. (Kent, Mid) Hay, Hon. Claude George Parkes, Ebenezer Williams, Col. R. (Dorset, W.) Hermon-Hodge, Sir Robert Pease, Herbert Pike (Darlington) Willoughby de Eresby, Lord Hill, Sir Clement Peel, Hon. W. R. W. Winterton, Earl Hope, James Fitzalan (Sheffield) Percy, Earl Wortley, Rt. Hon. C. B. Stuart- Hunt, Rowland Pretyman, E G Wyndham, Rt. Hon. George Joynson-Hicks, William Randles, Sir John Scurrah Younger, George Kennaway, Rt. Hon. Sir John H. Rawlinson, John Frederick Peel Kerry, Earl of Remnant, James Farquharson TELLERS FOR THE AYES. —Sir—Sir Keswick, William Renwick, George A. Acland-Hood and Viscount Lambton, Hon. Frederick William Roberts, S. (Sheffield, Ecclesall) Valentia.
NOES. Abraham, W. (Cork, N.E.) Cheetham, John Frederick Glover, Thomas Agnew, George William Cherry, Rt. Hon. R. R. Goddard, Sir Daniel Ford Alden, Percy Churchill, Rt. Hon. Winston S. Gooch, George Peabody (Bath) Allen, A. Acland (Christchurch) Clancy, John Joseph Greenwood, G. (Peterborough) Allen, Charles P. (Stroud) Cleland, J. W. Grey, Rt. Hon. Sir Edward Ambrose, Robert Clough, William Gwynn, Stephen Lucius Armitage, R. Cobbold, Felix Thornley Haldane, Rt. Hon. Richard B. Armstrong, W. C. Heaton Collins, Stephen (Lambeth) Harcourt, Rt.-Hon. L. (Roosendale) Ashton, Thomas Gair Collins, Sir Wm. J. (St. Pancras, W.) Harcourt, Robert V. (Montrose) Asquith, Rt. Hon. Herbert Henry Condon, Thomas Joseph Hardie, J. Keir (Merthyr Tydvil) Astbury, John Meir Cooper, G. J. Harmsworth, Cecil B. (Worcester) Atherley-Jones, L Corbett, C. H. (Sussex, E. Grinstead) Harmsworth, R. L. (Caithness-sh.) Baker, Sir John (Portsmouth) Cotton, Sir H. J. S. Harvey, A. G. C. (Rochdale) Baker, Joseph A. (Finsbury, E.) Cowan, W. H. Harvey, W. E. (Derbyshire, N.E.) Balfour, Robert (Lanark) Craig, Herbert J. (Tynemouth) Harwood, George Baring, Godfrey (Isle, of Wight) Crooks, William Haslam, Lewis (Monmouth) Barker, Sir John Crosfield, A. H. Haworth, Arthur A. Barlow, Percy (Bedford) Crossley, William J. Hayden, John Patrick Barnard, E. B. Cullinan, J. Hazleton, Richard Barnes, G. N. Davies, David (Montgomery Co.) Hedges, A. Paget Barran, Sir John Nicholson Davies, Ellis William (Eifion) Helme, Norval Watson Beauchamp, E. Davies, Timothy (Fulham) Henry, Charles S. Beck, A. Cecil Delany, William Herbert, Col. Sir Ivor (Mon. S.) Bellairs, Carlyon Dewar, Arthur (Edinburgh, S.) Higham, John Sharp Benn, Sir J. Williams (Devonport) Dewar, Sir J. A. (Inverness-sh.) Hobart, Sir Robert Benn, W. (Tower Hamlets, St. Geo.) Dickinson, W. H. (St. Pancras, N.) Hobhouse, Charles E. H. Berridge, T. H. D. Dickson-Poynder, Sir John P. Hogan, Michael Birrell, Rt. Hon. Augustine Dobson, Thomas W. Holden, E. Hopkinson Black, Arthur W. Duncan, C.(Barrow-in-Furness) Holland, Sir William Henry Boland, John Duncan, J. Hastings (York, Otley) Holt, Richard Durning Boulton, A. C. F. Dunn, A. Edward (Camborne) Hooper, A. G. Bowerman, C. W. Dunne, Major E. Martin (Walsall) Horniman, Emslie John Bramsdon, T. A. Edwards, A. Clement (Denbigh) Horridge, Thomas Gardner Branch, James Edwards, Sir Francis (Radnor) Howard, Hon. Geoffrey Brigg, John Essex, R. W. Illingworth, Percy H. Bright, J. A. Esslemont, George Birnie Isaacs, Rufus Daniel Brocklehurst, W. B. Evans, Sir S. T. Jackson, R. S. Brooke, Stopford Everett, R. Lacey Jardine, Sir J. Brunner, J. F. L. (Lancs., Leigh) Falconer, J. Johnson, John (Gateshead) Bryce, J. Annan Fenwick, Charles Johnson, W. (Nuneaton) Buckmaster, Stanley O. Ferguson, R. C. Munro Jones, Leif (Appleby) Burke, E. Haviland- Ffrench, Peter Jones, William (Carnarvonshire) Burns, Rt. Hon. John Flennes, Hon. Eustace Jowett, F. W. Burnyeat, W. J. D. Findlay, Alexander Joyce, Michael Burt, Rt. Hon. Thomas Freeman-Thomas, Freeman Kekewich, Sir George Buxton, Rt. Hon. Sydney Charles Fuller, John Michael F. Kelley, George D. Byles, William Pollard Fullerton, Hugh Kennedy, Vincent Paul Cameron, Robert Furness, Sir Christoher Kettle, Thames Michael Carr-Gomm, H. W. Gibb, James (Harrow) Kilbride, Denis Causton, Rt. Hon. Richard Knight Ginnell, L. King, Alfred John (Knutsford) Chance, Frederick William Gladstone, Rt. Hon. Herbert John Laidlaw, Robert Channing, Sir Francis Allston Glen-Coats, Sir T. (Renfrew, W.) Lamb, Edmund G. (Leominster) Lamb, Ernest H. (Rochester) O'Kelly, James (Roscommon, N.) Soares, Ernest J. Lambert, George O'Malley, William Spicer, Sir Albert Lamont, Norman O'Shaughnessy, P. J. Stanger, H. Y. Law, Hugh A. (Donegal, W.) Parker, James (Halifax) Stanley, Albert (Staffs, N.W.) Layland-Barrett, Sir Francis Partington, Oswald Stanley, Hon. A. Lyulph (Cheshire) Leese, Sir Joseph F. (Accrington) Paulton, James Mellor Steadman, W C Lehmann, R. C. Pearce, Robert (Staffs, Leek) Stewart-Smith, D. (Kendal) Lever, A. Levy (Essex, Harwich) Philips, John (Longford, S.) Strachey, Sir Edward Levy, Sir Maurice Pickersgill, Edward Hare Straus, B. S. (Mile End) Lewis, John Herbert Pirie, Duncan V. Strauss, E. A. (Abingdon) Lloyd-George, Rt. Hon. David Pointer, J. Taylor, John W. (Durham) Lundon, T. Pollard, Dr. G. H. Taylor, Theodore C. (Radcliffe) Luttrell, Hugh Fownes Ponsonby, Arthur A. W. H. Tennant, Sir Edward (Salisbury) Lyell, Charles Henry Power, Patrick Joseph Tennant, H. J (Berwickshire) Macdonald, J. R. (Leicester) Price, C. E. (Edinburgh, Central) Thomasson, Franklin Mackarness, Frederic C. Price, Sir Robert J. (Norfolk, E.) Thompson, J. W. H. (Somerset, E.) Maclean, Donald Priestley, Arthur (Grantham) Thorne, G. R. (Wolverhampton) Macnamara, Dr. Thomas J. Priestley, W. E. B. (Bradford, E.) Thorne, William (West Ham) MacNeill, John Gordon Swift Radford, G. H. Tomkinson, James MacVeagh, Jeremiah (Down, S.) Rainy, A. Rolland Toulmin, George MacVeigh, Charles (Donegal, E.) Raphael, Herbert H. Trevelyan, Charles Philips MiCallum, John M. Rea, Walter Russell (Scarborough) Ure, Rt. Hon. Alexander McKenna, Rt. Hon. Reginald Reddy, M. Verney, F. W. M'Laren, H. D. (Stafford, W.) Redmond, John E. (Waterford) Walsh, Stephen M'Micking, Major G. Rees, J. D. Ward, W. Dudley (Southampton) Maddison, Frederick Rendall, Athelstan Wardle, George J. Manfiled, Harry (Northants) Richards, T. F. (Wolverhampton, W.) Waring, Walter Markham, Arthur Basil Ridsdale, E. A. Warner, Thomas Courtenay T. Marnham, F. J Roberts, Charles H. (Lincoln) Wason, Rt. Hon. E. (Clackmannan) Massie, J. Roberts, G. H. (Norwich) Wason, John Cathcart (Orkney) Masterman, C. F. G. Robertson, J. M. (Tyneside) Waterlow, D S. Meehan, Francis E. (Leitrim, N.) Robinson, S. Watt, Henry A. Meehan, Patrick A. (Queen's Co.) Roch, Walter F. (Pembroke) Wedgwood, Josiah C. Menzies, Walter Roche, Augustine (Cork) Whitbread, S. Howard Micklem, Nathaniel Roche, John (Galway, East) White, Sir George (Norfolk) Mond, A. Roe, Sir Thomas White, J. Dondas (Dumbartonshire) Money, L. G. Chiozza Rogers, F. E. Newman White, Sir Luke (York, E R.) Montagu, Hon. E. S. Rose, Charles Day Whitehead, Rowland Mooney, J. J. Rowlands, J Whitley, John Henry (Halifax) Morrell, Philip Russell, Rt. Hon. T. W. Wiles, Thomas Morton, Alpheus Cleophas Rutherford, V. H. (Brentford) Wilkie, Alexander Murray, James (Aberdeen, E.) Samuel, Rt. Hon. H. L. (Cleveland) Williams, W. Llewelyn (Carmarthen) Myer, Horatio Samuel, S. M. (Whitechapel) Williams, A. Osmond (Merioneth) Nannetti, Joseph P. Scarisbrick, T. T. L Williamson, A. Napier, T. B. Schwann, C. Duncan (Hyde) Wills, Arthur Walters Newnes, F. (Notts, Bassetlaw) Scott, A. H. (Ashton-under-Lyne) Wilson, John (Durham, Mid) Nolan, Joseph Scaverns, J. H. Wilson, J. W. (Worcestershire, N.) Norman, Sir Henry Seddon, J. Wilson, P. W. (St. Pancras, S.) Norton, Captain Cecil William Seely, Colonel Wilson, W. T. (Westhoughton) Nussey, Thomas Willans Shackleton, David James Winfrey, R. Nuttall, Harry Sheehy, David Wodehouse, Lord O'Brien, K. (Tipperary, Mid) Shipman, Dr. John G. Wood, T. M'Kinnon O'Brien, Patrick (Kilkenny) Simon, John Allsebrook O'Donnell, C. J. (Walworth) Smeaton, Donald Mackenzie TELLERS FOR THE NOES. —Mr.—Mr. O'Grady, J. Snowden, P. Joseph Pease and the Master of O'Kelly, Conor (Mayo, N.) Seamen, Arthur Wellesley Elibank.
It is now twenty-five minutes to twelve o'clock, and I propose to move to report progress. I should like, in doing so, to ask the Chancellor of the Exchequer what his general views are with regard to our Debates, which are no longer under the limitation of the Eleven o'clock Rule? I have no objection myself to sitting later, but it will be convenient, broadly speaking, without pledging the Government as to particular nights or asking as to the views of the Government as to whether the time has come for more violent measures, that so long as the Debate goes on in the ordinary course, it would be convenient if we understood really what is the view of the Government as to when the Debates ought from time to time to terminate. Holding that view, and seeing that we Have already exceeded the ordinary limits of our Debates, I beg to move to report progress.
Question put: "That the Chairman do report progress, and ask leave to sit again."
I think that request is very reasonable, and so far as I am concerned I will answer it. With regard to to-morrow, I submit that there are many Amendments upon which agriculture could be raised. On an Amendment for the omission of the word "any" I think the point on which the question of agricultural land could be raised would be reached. I do not think there are any Amendments which are in order that stand between us and that point, and I shall so submit. If that is so I would assent to the Motion to report progress, and then we should begin to-morrow on this very important issue. With regard to other nights, "sufficient for the day is the evil thereof," I think we must be guided so far as other nights are concerned by the amount of business we get through. I do not think I could pledge myself at the present moment to anything in the future.
All the Amendments following on the one now disposed of seem to me to apply to Clause 2 or else to be covered by the last Amendment until we come down to the Amendment standing in the name of the hon. Member for the West Derby Division of Liverpool (Mr. W. W. Rutherford). That Amendment should come after the word "any." Therefore at that point the Amendment which should come first would be to omit the word "any."
On a point of order, if my Amendment were accepted the clause would read a duty upon "neglected, unimproved, or insufficiently utilised or cultivated land." I do not think the word "any" is required at all.
Then in that case the Amendment to omit "any" by the hon. and gallant Member for Chelmsford (Mr. Pretyman) should be moved first. He, I understand, wishes to leave out "any" so as to enable him to raise the issue with regard to agricultural land. In that case I should suggest, if the Motion to report progress is withdrawn, that the hon. and gallant Member should formally move his Amendment now and resume the Debate to-morrow.
Will that cut out the Amendment of my hon. Friend (Mr. W. W. Rutherford) or would he still retain his right—
Before the hon. Member for the West Derby Division of Liverpool can move his Amendment the word "any" must be omitted.
No, I do not want the word at all. The words I desire to omit come before the consideration of the word "any."
The hon. Member is mistaken. If he does not want the word "any" he means to leave it out.
That is subsequent.
It is not subsequent; it must be at the same time.
May I ask for the grounds upon which the Amendment standing in my name is out of order?
I do not know whether the hon. Gentleman has been present during the Debate; but we have been discussing the insertion of the word "unearned," and I consider that the hon. Member's Amendment has been cut out by that Amendment.
May I point out that my Amendment is not covered by that word, because it has reference to a question of public funds and stands on a totally different footing to any increment which might arise apart from any effort of the person owning the property. I submit that the two things are not on the same footing, and I should like to have an opportunity of moving my Amendment.
It has already been decided that the word "unearned" is not to go in. The hon. Member now wishes to put in words which would have a still more narrowing effect than "unearned,"and therefore I do not consider it is in order.
Will the Amendment of the right hon. Gentleman the Member for Wimbledon (Mr. Chaplin) insert the words "except on agricultural land, and" be cut out by the Amendment of the hon. and gallant Member for Chelmsford? I have a similar Amendment, which I think raises the point more clearly.
I understand that it is the desire of the Front Opposition Bench that the Member for Chelmsford should move his Amendment to leave out "any" and insert "all" in line 16, which would raise the question of agricultural land. There can only be one Debate upon that question. If it leads to a Division, as I imagine is rather probable, it cannot be raised again.
Then the position is that you, Mr. Chairman, rule out all Amendments which precede the Amendment upon the exclusion of agriculture. That being so, I understand that the Government are quite prepared to grant the adjournment of the House, it being understood that we begin the discussion on the exclusion of agriculture to-morrow. I presume the proper course for me is to ask leave to withdraw my Motion for the adjournment, and allow the hon. Member to move his Amendment without a speech. The Government will then consent to the adjournment.
Is it clear now that the Amendment of the hon. and learned Member for the West Derby Division is cut out by this arrangement?
I was about to ask that question myself. It is a very substantial point. I scarcely think it fair that it should be cut out.
I do not think that it will' be cut out unless the word "any" is cut out.
Then I must give notice again?
Yes; and in a correct form.
Motion to report Progress, by leave, withdrawn.
moved to leave out the word "any" ("any land or duty") and to insert the words "or land other than agricultural."
Question proposed, " That the word 'any' stand part of the clause."
Committee report Progress; to sit again to-morrow.
Irish Universities Act, 1908 (Statutes)
moved "That a humble Address be presented to His Majesty praying that the Statutes made for the Queen's University of Belfast by the Belfast Commissioners, in pursuance of the Act 8 Edward VII., c. 38, s. 5 (1), be not sanctioned till they are amended in the following particulars: Chapter XVI., Faculties 3 ( a ), by inserting 'music,' and by leaving out 'scholastic philosophy.'"
I am sorry to have to trouble the House with a continuation of the remarks which I started last Thursday night when the Chief Secretary and his Nationalist allies ran away. [Cries of "Oh."] Well, perhaps the right hon. Gentleman was in his place.
I beg your pardon. It was very much to my regret that the House was not kept.
There must have been something radically wrong with the Whips of the party; they ought to have kept the. House for the right hon. Gentleman. I should like to say the question which have, in accordance with the Rules of the House, to raise at this late hour, is one of very great moment to those in the North of Ireland interested in the future of the University established in Belfast. The step which I have taken is not one which is lightly done. I can assure the House that I am not a bit more desirous to remain here than anyone else after a reason-, able time, but owing to all that has; happened in regard to the University in the North of Ireland, and to all that has happened in regard to the statements made by the Chief Secretary, I feel that it is impossible to allow what has passed recently, to do so without notice, in this House. As everyone will recollect, the Bill was got through this House on the grounds that it was to establish undenominational universities in Ireland, one for the North and one for the South. I think there can be no doubt whatever that those who voted for the Bill in its various stages in Committee and in this House itself, voted for it because they were led to believe that these universities were to be undenominational. In Committee and in the House itself we were told then that it was impossible to have an adequate discussion as to the details, and that those details would appear in the statutes. I quite agree that some of my Friends on these benches voted believing that the University was denominational, and that is why they were in favour of it, but those of us who represented constituencies in the North of Ireland on the Unionist side believed that the establishment of a denominational university in the North of Ireland would be a mistake, and desired to have it open to all denominations and to every class. The statutes were placed on the Table very late, and I was rather suspicious that they were being kept back till the thirty-ninth day. But at all events, they were late. Owing to what I believe to be a very regrettable incident, what happened? Of all the denominations in Ireland—and there are many—the only denomination who sent a committee to approach the Commissioners in Belfast were those interested in the Roman Catholic religion and Roman Catholic education. One would have thought that perhaps the Presbyterians in Belfast—and Belfast is to a large extent Presbyterian—would have, approached these Commissioners of the Universities with a view to some special facilities for Protestantism in the Universities. Not at all; not a single body of any description brought pressure to bear upon the Commissioners except the Roman Catholics in Ireland. What was the result of that pressure? The result was that, looking through the statutes which were laid upon the Table, we discovered that one of the subjects of the Faculty of Arts is "Scholastic Philosophy."
There are two views with regard to scholastic philosophy. One is that it is undenominational to attract Roman Catholics into our University in the North of Ireland and therefore to give this subject in the. Faculty of Arts in order that they may be tempted to join. The other point of view, of course, is that there should be nothing at all in the new University which cannot be taught to anyone, and Roman Catholics were welcome under these conditions the same as any Protestant would be. The Act says nothing shall be done in the new University which shall be against the conscientious feelings of anyone desirous of taking their training there. He so arranges matters that the Commissioners are able to receive a deputation in order to impress upon him the necessity of allowing this absolutely out-of-date philosophy to be taught, because it is well known that no Roman Catholic can attend these lectures on Thomas Aquinas, and so on, unless the lectures are delivered by Roman Catholics. Is not that the very first step which could be taken for denominationalism in any University? Is it not absurd that the House and the country should spend money on a new University and that the very first step should be to have this denominational subject taught by a Roman Catholic? I do not say they are not entitled to learn any of these ancient philosophies if they like. The Attorney-General said he and the Chief Secretary were determined that not a pennypiece should be spent on denominationalism of any kind whatever, and they are sitting there now chuckling to themselves that all these assertions and brave words, in order to get the Bill through the House, had been slowly and quietly allowed to drop in order that they may cater to the very susceptible feelings of these Nationalists. Are we going to stand it, or are we not? I am certainly not going to be intimidated by hon. Gentlemen below the Gangway. I shall always use my own endeavours to point out the inconsistencies of the party opposite in their legislation. I do not object to hon. Members last year support- ing the Bill because it was denominational, but I object to the Radical party talking inside and outside the House all this undenominationalism and, after having got what they want, turning round and doing the exact opposite.
It seems to me that it is time attention was drawn to this fact, and I have taken the earliest opportunity to do so. It may be said that it is quite right that scholastic philosophy should be taught in Belfast University. I am quite sure that if it is taught, it will lead to one or two things. First of all it will lead to the introduction into the University of a certain number of Roman Catholics. I would be very sorry indeed that Roman Catholics should not have the benefit of every possible facility for education. Let them be educated by all means. Last year I pointed out, and I point out again this year, that if they will only drop the absurd and antiquated bars to entering some of the schools and colleges in Ireland, as has been done in England and Wales, it would be very much better for them. We do not hear of scholastic philosophy in any University in England. How is it that Oxford and Cambridge can get along without this particular subject being made part of the-arts course? None of the old Universities find it necessary to make scholastic philosophy part of the arts course. I know exactly what the Chief Secretary will say. He will say, "I have put this in the hands of Commissioners, and I leave the whole thing to them. They arrange that this particular subject shall be taught in the Faculty of Arts." If the Chief Secretary for Ireland were doing his duty, he would see that there was no denominationalism introduced into the programme at all. The right hon. Gentleman actually said last year in this House that no one who had matriculated in the old Royal University would be interfered with in his' studies under the new scheme. What is the fact? In the Royal University we had music.
And scholastic philosophy, also.
I know that there are rumours as to the appointment to be made to this chair in the North of Ireland, and I am sure if the hon. Member for. East Tyrone (Mr. Kettle) would give us the advantage of hearing a few words from him in the Debate to-night, he would arouse great sympathy in his Nationalist following who, perhaps, wish to see him ap-, pointed to the chair. How is it now in regard to the conferring of degrees in music, which was very much availed of in the old Royal University? I think our present Queen when Princess of Wales had a degree conferred upon her in Dublin some years ago. Music has been cut out to save money in order to support this new denominational teaching of scholastic philosophy. Will any man in this House defend such action? Will any man get up and say that it is for the good of the young people of Ireland that they should be taught such doctrines? I could quote a good many extracts from what has been said about this scholastic philosophy, but I am not going to do so. There is a narrow circle inside of which you can argue as much as you like, but you start with certain premises, and all that you can do is to argue backwards.
One Roman Catholic bishop described it as the antidote to the teaching of philosophy by the Protestants. The protest I make is not on my own account. I have the strongest representations that this is going dead against the sentiment of the Protestant people in the North of Ireland. The right hon. Gentleman (Mr. Birrell), I believe, could stop it if he desired. Every demand that is made by the Nationalists is accepted; but every demand—no matter how reasonable—emanating from an Ulster Unionist Member since I came into this House has been sneered at and flouted by the right hon. Gentleman. We have been thrust aside by what the hon. and learned Member for Waterford calls the strong man, because we happen to be a very small minority in the North of Ireland, and the right hon. Gentleman and his colleagues on the Nationalist Benches passed through this Bill against our wishes, in spite of all the fight we could put up against them. And now at the end we discover that we are face to face with a programme to divide Roman Catholics and Protestants in the North of Ireland into two sections. That is really what it comes to, although all people of sense in the North of Ireland are desiring of drawing the two sections together in the same college, where they can associate one with the other, and be taught together, while at the same time they can preserve their feelings, whatever they are—let them even have a fight if they like. But we say that introducing such a clause as this is reviving the old system of having one set of teachers for Protestant and one for Roman Catholics, and that will be carried out until not only will you have this new scheme of scholastic philosophy, but you will have every chair duplicated in the new university in the North of Ireland. Under those circumstances it becomes my duty to move the Motion that stands with my name.
I beg to second the Motion. I would remind the House that we were assured last year time after time that these universities, particularly the University in Belfast, were to be as undenominational as possible. For the first time, as soon as the statutes appear, the pledges given by the Chief Secretary are broken, and we have introduced into those statutes, in the Arts course, this scholastic philosophy which everybody acquainted with it knows to be a branch which no Protestant would ever take up. ["No."] I am right in saying that no Protestant would ever want to learn it. You would never have it taught by any Protestant; it would have to be taught by a Roman Catholic; and that in itself does away with what the right hon. Gentleman claims as one of the chief merits of these universities, that every subject to be taught in them could be equally well learned by Protestant or Roman Catholic, or any other person belonging to those universities. The pledges given have been broken. I do not say by the right hon. Gentleman, because he in the first instance has no control over these statutes. But he has the power to join us to-night in asking His Majesty to amend these statutes in the two respects suggested by my hon. Friend. If he intends to carry out the pledges he gave us last year, I do not think he can adopt any other course than that of voting with us to-night.
If the hon. and gallant Gentleman had taken his courage in both his hands and had suggested that the whole Faculty of Arts in this new University of Belfast should be purified by the exclusion of metaphysics, moral philosophy and history and philosophy altogether, and that music should be substituted in their place, he would indeed have raised a controversy fit for the gods, in which I do not know that I would have been able to take any part. Had he chosen to exclude all philosophy from Aristotle down to my right hon. Friend the Secretary of State for War, and urged that music, one of the seven arts or sciences, which has always an honourable place in the curriculum of mediœval subjects, should be one of them —for which I quite agree a good deal might be said—I am not at all sure on which side I might have found myself. But he has produced a very lop-sided Amendment. The only quarrel which the hon. and gallant Gentleman has with the Commissioners is not only that they have inserted logic, metaphysics, moral philosophy, history and philosophy in the Faculty of Arts, but that they have also given a place to scholastic philosophy. The hon. and gallant Member has a great contempt for scholastic philosophy. I remember reading many years ago how in this House an hon. Member once got up and said he had a great contempt for Greek, and Sir Robert Lowe remarked that he did not imagine that the hon. Member's contempt for Greek was of that particular kind which was bred of familiarity. I admit seriously, and not joyfully, that I share to a very large extent the ignorance of the hon. and gallant Gentleman. I have not got the "Summa Theologica" on my shelves. I should be very glad to have it, and at one time I hoped to have it, but the proposals of the Budget place it in the rank of those luxuries to which I, at all events, am not likely to attain. But why should the hon. and gallant Gentleman confine his wrath to scholastic philosophy? Is not Aristotle old? Does he want brand new philosophies for this brand new University of Belfast? I imagine not. Therefore I am at a loss to understand why he should confine his wrath to this particular branch of human industry. The hon. and gallant Member is perfectly correct in stating that I should say that I had nothing to do with this. He seems to think I am the villain of the piece. There were six Commissioners appointed—men of the greatest eminence, all of them Protestant, not a Catholic amongst them. They had the task imposed upon them by the Act of Parliament of, in the first instance, determining what should be the subjects forming the various faculties. They took evidence on this question. They were all of them satisfied, and none more so than that most distinguished man Sir Donald MacAlister, a Scotsman and a man of science of great reputation. He was satisfied not only that scholastic philosophy was a fit subject of human learning, but also that it would be improper in this University if no provision were made for its teaching. The hon. and gallant Member says that introducing scholastic philosophy into the curriculum of this University was a breach of faith because we contended, as certainly we did contend, that the new University in Belfast was to be an undenominational University. As I kept saying over and over again last year, with no effect, I admit, on the mind of the hon. and gallant Gentleman, by undenominational University we did not mean that nothing was to be taught in that University from first to last which could by any possibility have any savour of denominationalism about it. Our contention was that it should be a University teaching all subjects in art and science which were calculated to benefit the inhabitants of the neighbourhood, and those who were likely to frequent the University, but that no test of any sort or kind was to be placed upon anybody entering the University or on any professor or lecturer or any other person who took part in it.
Is it not the fact that in this particular case a test would be necessary? That is the explanation of why I moved.
No test whatever. The Commissioners are perfectly free to choose the best person they can find in scholastic-philosophy. If the hon. and gallant Member will only qualify himself for the task he himself can hold the Chair. He says nobody but a Roman Catholic can hold it. I see no reason whatever for that. It used to be said that nobody but a person in Holy Orders could fill a Professorship of Philosophy. In my own University of Cambridge a very eminent layman holds the Chair of Theology. I do not dispute the point that for many years to come there will be a difficulty to find a person qualified who has not had a training in Roman Catholic colleges, but that is not a reason why it should be said that any test of any sort or kind will be inflicted on those entering. I therefore say that this University retains its undenominational character even though It may appoint a lecturer in this subject. The hon. and gallant Gentleman has no objection to Scotch philosophy. No more have I. I have the greatest admiration for Scotch philosophy, taught, it may be, by Presbyterian clergymen, in order to qualify candidates for Orders in the Presbyterian Church to take their degrees. To that he has no objection. That is provided for by Protestants, and he offers no objection. It is not denominational, although it is a necessary part, or considered so, in the curriculum of an educated Presbyterian clergyman. I really think this distinction which the hon. and gallant Gentleman chooses to draw between one branch of philosophy and another is one that cannot be supported. It certainly cannot be supported by any pledges we have given as to the undenominational character of this University. I have here the reasons which actuated these very learned and most competent Commissioners, who, by common consent, have done their work admirably, and have given this University a start of a most promising character. The hon. and gallant Gentleman did not say much about music. Music is his substitute for scholastic philosophy, but he rather passed it over. I should be very sorry to see music permanently excluded from the curriculum of Belfast University, and I am sure it will not be. There is nothing final about these statutes. During the next two years they can be amended by the Commissioners, and after that period they can be altered by the Senate. I hope the money will be forthcoming for a Chair in Music. But at the present moment there are no students at Belfast qualifying themselves for a degree in music at the Royal University. There was great difficulty in getting people qualified by knowledge in that fascinating art or science to form a faculty, but I hope that that will not long continue to be the case. There is no rivalry, unless invented by the hon. and gallant Gentleman for his own purpose, between philosophy and music, and no reason whatsoever why both those arts should not be—I trust they soon will be—taught in the new University at Belfast. This subject has received most careful consideration at the hands of gentlemen without a tincture of Romanism in their constitution; they are simply anxious to provide the University with a fit staff, and to make it attractive to all classes in Belfast, so that, whether they are Catholics or Protestants, they will be proud of their University, which I believe has a great future before it. It is possible, in an undenominational University, to teach subjects of human knowledge which attract and deserve the attention of students of all sorts and kinds. I believe that these statutes are in this respect well framed to meet the necessities of the case, and I hope the House will not agree to the Address proposed by the hon. and gallant Gentleman.
Although personally I do not agree with the view my hon. and gallant Friend has put before the House, I think his case is a little stronger than it appears to be in the eyes of the Chief Secretary. It seems to me that the foundation of a lectureship in scholastic philosophy does sail somewhat near the wind, because it may be argued that in an indirect way it is establishing a test, not because scholastic philosophy is of necessity taught by a Catholic or by a cleric, but because, as a matter of fact, when the lecturer comes to be chosen, it will be found necessary, for two reasons, to have a Catholic and to exclude all others in the field. One reason is that there are no Protestants who have studied philosophy sufficiently to enable them to take up such a post; and the other is that such a lectureship must be held by one in whom the students would have confidence, and no Catholic, I think, would have confidence in the doctrines of St. Thomas Aquinas as expounded by a Presbyterian. These two facts seem in a way, not technically, to limit the tenure of the chair, but practically to establish a test. May I tell the House why, in spite of that, I think the Commissioners have done wisely in instituting this lectureship A very interesting thing has happened in the North of Ireland. The old ban upon Belfast College—or University, as it is now—has been withdrawn by the hierarchy or the bishop of the diocese. Now, for the first time, there is every hope of Roman Catholics and Protestants having that joint education which my hon. Friend desires in the University at Belfast. Roman Catholic students are already entering there, and it is, to my mind, one of the most hopeful things connected with this new University, a thing of good augury for the future, and, I believe, a thing that will help to increase the usefulness and greatness in the time to come of that University. Therefore, personally, I would strain a point, even if that was technically a little cut of order—I do not say it is—to give confidence to the Roman Catholics and encourage them to go to that University to learn not only technical and commercial subjects, but also to study the humanities. For if they want to learn philosophy and the faculty of arts in practice they can only learn them through the scholastic philosophy. I hope, therefore, the House will not assent to the petition which has been moved by my hon. Friend.
I think we are entitled to a word on this matter, particularly in the absence of my hon. Friend the Member for West Belfast (Mr. Joseph Devlin). The hon. and gallant Gentleman has been at considerable pains to proclaim his sincerity in this matter. His ideas are so strange and fantastic, that though I confess I have sometimes had doubts of his sincerity, I accept it now, for after three years' experience of this House I am convinced that there is no superstition so fantastic or reactionary but that will be believed by some Member of Parliament or another. The essential points of this Motion is an attack by the hon. and gallant Gentleman upon six Ulster Protestants—the Statutory Commission who framed and fixed these statutes. It is an attack not upon Dublin but Belfast University. The second point of the hon. and gallant Gentleman appears to rest upon two suggestions. First, there was a sort of half-suggestion that attendance at these lectures on scholastic philosophy was somehow to be compulsory on the students of Belfast University. That is absurd. He now suggests that this was a radical departure from the programme formally adopted in the Royal University. That is not the case in the arts course at the Royal University. The special course of philosophy was divided into two parts, scholastic and non-scholastic. The chief point of difficulty was that if a student took the scholastic course he had also to read the non-scholastic, though any student of the non-scholastic could take his degree in philosophy without having acquired any deeper acquaintance with the works of Thomas Aquinas than the hon. and gallant Gentleman himself. The hon. Gentleman speaks on behalf of an undenominational University. With all respect to his sincerity, I do not think this Motion would have been made were it not that he and his friends in Ulster are approaching the celebration of that undenominational festival, the 12th July. I am sorry he did not give us more upon that point. He might here sing "The Boyne Water" or "Croppies, lie down." That is a celebration that might very properly come within the scope of a University in Belfast.
There is one imputation which I do resent. It is continually repeated and sent broadcast through the Protestant world by persons who have never taken the trouble to acquaint themselves with the elementary facts. That is that scholastic philosophy as taught to Catholic students is something divorced from modern life. I resent and repudiate that. The hon. and gallant Member draws a comparison as to the scholasticism of Belfast and Oxford. I cannot answer him, except to say that one of the best translations into modern English of Thomas Aquinas was published about two years ago at Oxford by Father Rickaby. I do know Bonn and Leipsic Universities, and I know you cannot go into a Continental University which interests itself at all in philosophic subjects but where you will find that book regarded as one of the greatest creations of man's intellect, and studied by persons, who, whether they respect it or not, judge it in the light of an intellectual standard. Has the hon. and gallant Member ever heard of the University of Louvain? Has he ever heard of Cardinal Mercier, one of the greatest names in modern psychology? Does he know that one of the books on the purely political question of the Referendum is by one of the scholastic Catholic philosophers? The hon. and gallant Member said that the effect of establishing this, which is not a chair but a mere lectureship, would be to draw to the University of Belfast a certain number of Catholics who would not otherwise go to it. Does he object to that? Is that his idea of uniting Catholic and Protestant upon the common ground of intellect? It is not our idea. It is just because I believe that the effect of the establishment of this chair or lectureship, which no student will be forced to attend, whose courses will be perfectly optional, will be to draw together Catholics and Protestants in Ulster and in Belfast, because I think it will drown the music of "Croppies, lie down" in some finer and nobler music that may rise from that institution in the future, that I join with the hon. Member for Cambridge University (Mr. Butcher) in welcoming this study as indicating on the part of these six Protestant Commissioners a feeling of toleration and equality between Catholics and Protestants, and as extending to Catholics a hand of cordial welcome to the University of Belfast.
Question put.
The House divided: Ayes, 19; Noes, 112.
Division No. 183.] AYES. [12.40 a.m. Barrie, H. T. (Londonderry, N.) Hamilton, Marquess of Walrond, Hon. Lionel Bignold, Sir Arthur MacCaw, William J. MacGeagh Williams, Col. R. (Dorset, W.) Carlile, E. Hildred M'Arthur, Charles Wortley, Rt. Hon. C. B. Stuart- Clive, Percy Archer M'Calmont, Col. James Coates, Major E. F. (Lewisham) Rutherford, W. W. (Liverpool) Corbett, C. H. (Sussex, E. Grinstead) Sandys, Col. Thomas Myles TELLERS FOR THE AYES.— CaptainCaptain Craig, Charles Curtis (Antrim, S.) Stanier, Beville Craig and Mr. Lansdale. Dalrymple, Viscount Valentia, Viscount
NOES. Abraham, W. (Cork, N.E.) Haworth, Arthur A. Rea, Walter Russell (Scarborough) Allen, Charles P. (Stroud) Hayden, John Patrick Reddy, M. Balfour, Robert (Lanark) Hazleton, Richard Redmond, John E. (Waterford) Baring, Godfrey (Isle of Wight) Higham, John Sharp Rees, J. D. Barlow, Percy (Bedford) Hobart, Sir Robert Roberts, Charles H. (Lincoln) Bennett, E. N. Hogan, Michael Roche, Augustine (Cork) Birrell, Rt. Hon. Augustine Horniman, Emslie John Roche, John (Galway, East) Boland, John Horridge, Thomas Gardner Russell, Rt. Hon. T. W. Bowerman, C. W Jones, Leif (Appleby) Samuel, S. M. (Whitechapel) Bramsdon, T. A. Joyce, Michael Seddon, J. Brodie, H. C. Joynson-Hicks, William Seely, Colonel Bryce, J. Annan Kennedy, Vincent Paul Sheehy, David Burke, E. Haviland- Kettle, Thomas Michael Simon, John Allsebrook Butcher, Samuel Henry Kilbride, Denis Strachey, Sir Edward Causton, Rt. Hon. Richard Knight Law, Hugh A. (Donegal, W.) Straus, B. S. (Mile End) Cherry, Rt. Hon. R. R. Lehmann, R. C. Talbot, Lord E. (Chichester) Clancy, John Joseph Levy, Sir Maurice Taylor, Theodore C. (Radcliffe) Cleland, J. W. Lewis, John Herbert Tennant, H. J. (Berwickshire) Clough, William Lundon, T. Thompson, J. W. H. (Somerset, E.) Cobbold, Felix Thornley Macdonald, J. R (Leicester) Tculmin, George Condon, Thomas Joseph MacVeagh, Jeremiah (Down, S.) Trevelyan, Charles Philips Cotton, Sir H. J. S. MacVeigh, Charles (Donegal, E.) Ure, Rt. Hon. Alexander Craig, Herbert J. (Tynemouth) Meehan, Francis E. (Leitrim, N.) Verney, F. W. Cullinan, J. Meehan, Patrick A. (Queen's Co.) Waring, Walter Davies, David (Montgomery Co.) Mooney, J. J. Watt, Henry A. Dunn, A. Edward (Camborne) Nannetti, Joseph P. White, Sir George (Norfolk) Essex, R. W. Newnes, F. (Notts, Bassetlaw) White, J. Dundas (Dumbartonshire) Esslemont, George Birnie Norton, Captain Cecil William White, Sir Luke (York, E.R.) Evans, Sir S. T. O'Brien, K. (Tipperary, Mid) White, Patrick (Meath, North) Everett, R. Lacey O'Brien, Patrick (Kilkenny) Whitley, John Henry (Halifax) Ffrench, Peter O'Grady, J. Wiles, Thomas Field, William O'Kelly, Conor (Mayo, N.) Wilson, P. W. (St. Pancras, S.) Fiennes, Hon. Eustace O'Malley, William Wilson, W. T. (Westhoughton) Fuller, John Michael F. Pearce, Robert (Staffs., Leek) Wood, T. M'Kinnon Ginnell, L. Philips, John (Longford, S.) Glendinning, R. G. Power, Patrick Joseph TELLERS FOR THE NOES. —Mr.—Mr. Gwynn, Stephen Lucius Price, C. E. (Edinburgh, Central) Joseph Pease and the Master of Harcourt, Robert V. (Montrose) Radford, G. H. Elibank. Harmsworth, Cecil B. (Worcester) Raphael, Herbert H.
And, it being after Half-past Eleven of the clock on Monday evening, Mr. Speaker adjourned the House without Question put, in pursuance of the Standing Order.
Adjourned at Fourteen minutes before One o'clock.