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Commons Chamber

Volume 56: debated on Monday 11 August 1913

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House Of Commons

Monday, 11th August, 1913.

The House met at a Quarter before Three of the clock, Mr. SPEAKER in the Chair.

New Writ

For the County of Derby (Chesterfield Division), in the room of James Haslam, esquire, deceased.—[ Mr. Goldstone.]

Private Business

Wine Privileges Abolition Bill (Standing Orders not complied with),—Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, pursuant to the Order of the House of the 29th day of July last, That, in the case of the following Bill, the Standing Orders which are applicable thereto have not been complied with, namely:—

Wine Privileges Abolition Bill.

Ordered, That the Report be referred to the Select Committee on Standing Orders.

Cardiff Railway Bill [ Lords],

As amended, to be considered To-morrow, at a quarter-past Eight of the clock.

Limerick Harbour Commissioners Bill [ Lords],

As amended, considered:—

Ordered, That Standing Orders 223 and 243 be suspended, and that the Bill be now read the third time.—[ The Deputy-Chairman.]

King's consent signified.

Bill read the third time, and passed, with Amendments.

Morley Corporation Bill [ Lords],

As amended, to be considered To-morrow.

Aberystwyth Corporation Bill [ Lords] (by Order),

As amended, considered; Amendments made:—

Ordered, That Standing Orders 223 and 243 be suspended, and that the Bill be now read the third time.—[ The Deputy-Chairman.]

King's Consent signified.

Bill read the third time, and passed, with Amendments.

Local Government Provisional Orders (No. 21) Bill, Ordered, That any further proceedings on the Local Government Provisional Orders (No. 21) Bill be suspended in order that the same Bill may be proceeded with in the next Session of Parliament.

That, with regard to the said Bill, the Order of Presentation in the present Session shall be read, and thereupon the Bill shall be read the first and a second time pro formâ, and the Order for referring the Bill to a Committee shall be dispensed with, and the Bill ordered to be read the third time.—[ The Chairman of Ways and Means.]

Ordered, That this Order be a Standing Order of the House.

Ordered, That a Message be sent to the Lords to acquaint them therewith, and desire their concurrence.

Standing Orders (Private Business).

I have these two or three small Amendments of Standing Orders to propose to the House. None of them involve any matter of principle. The first one is merely consequential to the Pilotage Act of last year. The second one is purely a drafting Amendment; whilst the third and fourth are to alter the time at which notices shall be deposited in the Private Bill Office from Six o'clock to Five o'clock. This latter is a matter arising from the amalgamation of the Private Bill Office and the Bill Office which has been done for reasons of economy.

Part II.—Definitions read, and amended, in page 90, line 6, after the word "power," by inserting the words "The term Provisional Order includes Pilotage Order."

Standing Order 204 read, and amended, in line 6, by inserting after the word "Bills," the words "or of any Bill to confirm any Provisional Order or Provisional Certificate."

Standing Order 231 read, and amended, in line 2, by leaving out the word "six," and inserting the word "five."

Standing Order 247 read, and amended, in line 3, by leaving out the word "six," and inserting the word "five."—"[ The Chairman of Ways and Means.]

Board Of Education

Copy presented of Reports from Universities and University Colleges in Great Britain which are in receipt of Grant from the Board of Education, 1911–12. Vols. I. and II. [by Command]; to lie upon the Table.

Universities Of Oxford And Cambridge Act, 1877 (Oxford)

Copy presented of Statute made by the Governing body of Pembroke College, Oxford, on the 23rd April, 1913 (and sealed on the same day), amending Statute 10, Clause 9, of the existing Statutes of the College [by Act]; to lie upon the Table.

Universities Of Oxford And Cambridge Act, 1877 (Cambridge)

Copy presented of Statute made by the Governing Body of Gonville and Caius College, Cambridge, on the 25th April, 1913 (and sealed on the same day), amending Statute 40 of the existing Statutes of the College, and adding a new Statute (Statute 40A) thereto [by Act]; to lie upon the Table.

Universities Of Oxford And Cambridge Act, 1877 (Cambridge)

Copy presented of Statute made by the University of Cambridge, and sealed on the 5th May, 1913, amending Statute A, Chapters II., III., and V., and Statute B, Chapters II., VI., and VII. of the existing Statutes of the University [by Act]; to lie upon the Table.

Navy (Oil Fuel)

Copy presented of Admiralty Specification for Oil Fuel (1910) and the revised Specification (1912) [by Command]; to lie upon the Table.

Naval Expenditure (Principal Naval Powers)

Return presented relative thereto [ordered 15th July; Mr. Chiozza Money]; to lie upon the Table, and to be printed.

National Insurance Act

Copy presented of the National Health Insurance (Wales) (Deposit Contributors Administration Expenses) Order, 1913 (No. 2), dated 7th August, 1913 [by Command]; to lie upon the Table.

Copy presented of the National Health Insurance (Further Payments to Approved Societies) (Scotland) Order (No. 3), 1913, dated 7th August, 1913, made by the Scottish Insurance Commissioners under the Act [by Command]; to lie upon the Table.

Copy presented of Provisional Regulations, dated 7th August, 1913, made by the Treasury, entitled the National Insurance (Joint Committee) Amendment Regulations, 1913 [by Act]; to lie upon the Table, and to be printed.

Copy presented of Provisional Regulations dated 30th July, 1913, made by the National Health Insurance Joint Committee and the Welsh Insurance Commissioners, acting jointly, entitled the National Health Insurance (Outworkers) Amendment Regulations (Wales), 1913 [by Act]; to lie upon the Table, and to be printed.

Copy presented of Regulations, dated 6th August, 1913, made by the Insurance Commissioners, entitled the National Health Insurance (Scilly Isles Insurance Committee) Regulations, 1913 [by Act]; to lie upon the Table, and to be printed. [No. 277.]

County Officers And Courts (Ireland) Act, 1877

Account presented of Receipts and Payments under the Act during the year ended 31st March, 1913 [by Act]; to lie upon the Table.

Superannuation Act, 1887

Copy presented of Treasury Minute, dated 6th August, 1913, granting a Retired Allowance to William Rinzee Freeman, Foreman of Baggage Stores, Royal Naval Hospital, Haslar, Admiralty, under the Act [by Act]; to lie upon the Table.

Board Of Agriculture And Fisheries

Copy presented of Agricultural Statistics, 1912. Vol. XLVII. Part IV. Imports and Exports of Corn, Live Stock, and other Agricultural Produce [by Command]; to lie upon the Table.

Copy presented of Report of Proceedings at the Twenty-third Annual Meeting of Representatives of Authorities under the Sea Fisheries Regulation Act, 1888 [by Command]; to lie upon the Table.

Trade Reports (Annual Series)

Copies presented of Diplomatic and Consular Reports, Annual Series, Nos. 5176 to 5178 [by Command]; to lie upon the Table.

Egypt (No 3A, 1913)

Copy presented of Translation of the Organic and Electoral Laws of Egypt, promulgated 21st July, 1913 [by Command]; to lie upon the Table.

Old Age Pensioners And Aged Pauperism

Copy presented of Statement with regard to Old Age Pensioners and Aged Pauperism,—

Part I.—Statement showing for certain areas in England and Wales the number of Old Age Pensioners on the last Friday in March, 1912, with other particulars;

Part II.—Statements showing the results of Returns as to the number of Paupers over seventy years of age on certain dates in the years 1906, 1910, 1911, 1912, and 1913,—

  • (a) for Union Counties;
  • (b) for each Poor Law Union in England and Wales
  • [by Command]; to lie upon the Table.

    Census Of England And Wales, 1911

    Copy presented of Census of England and Wales, 1911. Vol. IX. Birthplaces of Persons enumerated in administrative counties, county boroughs, etc., and Ages and Occupations of Foreigners [by Command]; to lie upon the Table.

    Copy presented of Census of England and Wales, 1911. Vol. X. Occupations and Industries. Parts I. and II. [by Command]; to lie upon the Table.

    Copy presented of Census of England and Wales, 1911. Vol. IX. Infirmities. Persons returned as totally blind, totally deaf, deaf and dumb, lunatic, imbecile, and feeble-minded [by Command]; to lie upon the Table.

    Navigation And Shipping

    Copy presented of Annual Statement of Navigation and Shipping of the United Kingdom for the year 1912, with Comparative Tables for the years 1908 to 1912 [by Command]; to lie upon the Table.

    Statistical Abstract (United Kingdom)

    Copy presented of Statistical Abstract for the United Kingdom, in each of the last fifteen years, from 1898 to 1912. Sixtieth number [by Command]; to lie upon the Table.

    British South Africa (Trade)

    Copy presented of Report to the Board of Trade on the Trade of British South Africa (and Rhodesia) for the year 1912 by His Majesty's Trade Commissioner for South Africa, Sir R Sothern Holland [by Command]; to lie upon the Table.

    Colonial Statistics

    Copy presented of Statistical Tables relating to the several British Self-Governing Dominions, Crown Colonies, Possessions, and Protectorates. Part XXXVI., 1911 [by Command]; to lie upon the Table.

    Colonial Import Duties, 1913

    Copy presented of Return relating to the Rates of Import Duties levied upon the principal and other Articles imported into the British Self-Governing Dominions, Crown Colonies, Possessions, and Protectorates [by Command]; to lie upon the Table.

    Iron And Steel, 1912

    Copy ordered "of Memorandum and Statistical Tables showing the Production and Consumption of Iron Ore and Pig Iron, and the Production of Steel, in the United Kingdom and the principal Foreign countries in recent years, and the Imports and Exports of certain classes of Iron and Steel Manufactures (in continuation of Parliamentary Paper, No. 402, of Session 1912–13)."—[ Mr. Buxton.]

    Coal Tables, 1912

    Copy Ordered "of Statistical Tables relating to the Production, Consumption, and Imports and Exports of Coal in the British Empire and the principal Foreign countries in recent years as far as the particulars can be stated; together with Statements showing the Production of Lignite and Petroleum in the principal producing countries for a series of years (in continuation of Parliamentary Paper, No. 403, of Session 1912–13)."—[ Mr. Buxton.]

    Alcoholic Beverages, 1912

    Copy ordered of "Memorandum and Statistical Tables showing the Production and Consumption of Alcoholic Beverages (Wine, Beer, and Spirits) in the British Empire and in the principal Foreign Countries; and the Revenue derived therefrom in recent years (in continuation of Parliamentary Paper, No. 319. of Session 1910)."—[ Mr. Buxton.]

    Message From The Lords

    That they have agreed to:—

    Local Authorities Contributions (Crystal Palace) Bill, without Amendment,

    Nottingham Corporation Bill,

    Westminster Hospital Bill,

    Western Valleys (Monmouthshire) Rail-less Electric Traction Bill, with Amendments.

    Amendments to—

    Gas and Water Orders Confirmation (No. 1) Bill [ Lords],

    Pier and Harbour Provisional Orders (No. 3) Bill [ Lords],

    Huddersfield Corporation Bill [ Lords],

    Bradford Corporation Bill [ Lords],

    London Electric Railway Bill [ Lords], without Amendment.

    Amendment to—

    McBride's Divorce Bill [ Lords], without Amendment.

    Motor Traffic

    Report from the Select Committee, with Minutes of Evidence and an Appendix, brought up, and read;

    Report to lie upon the Table, and to be printed. [No. 278.]

    Standing Orders

    Ordered, That the Standing Orders, as amended, be printed.—[ The Chairman of Ways and Means.] [No. 283.]

    Oral Answers To Questions

    Development Fund (Dairy Farmers)

    1.

    asked the President of the Board of Agriculture how soon it will be possible to provide out of Grants from the Development Fund suitable bulls of a good milking strain for use in dairy districts, and thus provide an additional inducement to dairy farmers to abstain from the slaughter of immature heifer calves?

    My right hon. Friend hopes that the scheme for the improvement of live stock will be in active operation very shortly. Two expert inspectors will be appointed within the next few weeks, and detailed regulations will then be issued without delay.

    Central Chamber Of Agriculture

    2.

    asked the President of the Board of Agriculture whether he has received a resolution from the Central Chamber of Agriculture to the effect that an opportunity should be given to agriculturists, through the medium of their leading organisations, to consider schemes for the improvement of live stock before they are brought into operation;. and, if so, whether he proposes to comply with its terms?

    A resolution from the Central Chamber of Agriculture was received by my right hon. Friend on the 17th July last. It was substantially in the terms recited by the hon. Member, but did not contain the words "through the medium of their leading organisations." My right hon. Friend concurs generally in the views expressed in the resolution sent to him, and every opportunity has been taken, and will continue to be taken, by the Board to invite suggestions on the scheme for the improvement of live stock from the provincial councils and their live-stock committees, which are thoroughly representative of agricultural opinion in all parts of the country.

    Intermediate And Secondary Schools (Scotland)

    3.

    asked the Secretary for Scotland what is the total number of public intermediate and secondary schools in Scotland for the year 1912; the number of students attending; the number who receive free education; the general fee charged; the total annual cost of maintaining those schools; and the salaries paid to the head and assistant masters?

    I would refer the hon. Member to my answer to his question of 2nd July. In addition to the 176 higher grade and 35 secondary schools therein referred to as being under the management of school boards there were, at the end of the year 1911–12, 21 secondary and 18 higher grade schools not under school boards but in receipt of Grants from the Scotch Education Department, making a total of 250 in all. The number of intermediate and secondary scholars on the roll was about 38,000. The number of free scholars in all the higher grade schools was about 21,500, but, as already stated, I have no information as to the number of free scholars in the secondary schools. I am unable to supply the other particulars asked for.

    Ballyhack Harbour (Ireland)

    4.

    asked the Vice-President of the Department of Agriculture (Ireland) whether he is aware that it was proposed to spend £900 on Ballyhack Harbour, the Wexford County Council agreeing to pay half this sum and the Department of Agriculture agreeing to pay the other half and to send their engineer to prepare plans and superintend the work; is he aware that the fishermen's boats will be in danger during the coming winter if the breakwater is not built and the other suggested improvements carried out; and can he say if the plans and specifications have been prepared and tenders advertised for and accepted, or if any progress whatever has been made?

    It is fact that preliminary plans were prepared by the Department's engineer for the improvement of the harbour at Ballyhack at an estimated cost of £900, half of which was to be provided by the Wexford County Council. Difficulties have since arisen in connection with the carrying out of the work. The Waterford harbour authority, within whose jurisdiction Ballyhack is situated, have suggested that the fairway to Waterford might be endangered unless the proposed breakwater were constructed in a much more expensive manner than appeared necessary for merely local requirements. It has not been found possible to arrange for the disposal of the dredged material without towing it a long distance to sea. The Department are endeavouring to find a way out of these difficulties.

    Factories Act (Medical Staff)

    5.

    asked the Secretary of State for the Home Department whether there is any intention to increase the medical staff of the Factory Department to deal with industrial diseases; whether he will consider the necessity of appointing medical referees to diagnose and report upon injuries, serious and otherwise, in cases where the victims of accidents are too poor to pay legal and medical costs; and whether he can state the number of qualified practitioners appointed in conjunction with the administration of the Factories Act and the regulations under the same?

    One medical inspector is being added to the staff, making three medical inspectors in all. Medical men are also appointed under the Act and regulations throughout the country for the purpose of examining children and young persons, inquiring into accidents and poisoning cases and examining workmen in certain dangerous industries; the number of these medical men is 2,118. I do not quite understand the second part of my hon. Friend's question. If he is referring to proceedings under the Compensation Act, a worker injured by accident is not required by that Act to obtain any medical certificate for the pur- pose of making a claim for compensation. A worker suffering from an industrial disease has to obtain a certificate from the certifying surgeon, but the fee is only 1s. in cases where the certifying surgeon gives the certificate on the result of the examination made by him in pursuance of his duties under the Factory Act, and 5s. in other cases; and if the worker is refused a certificate and appeals to the medical referee, the referee's fee is paid by the State. I have no evidence before me to show the need for any change in the system.

    Prevention Of Cruelty To Animals Act (Inspectors)

    6.

    asked the Home Secretary what procedure is adopted in the appointment of the new inspectors under the Prevention of Cruelty to Animals Act, and with whom he consults as to the choice of the said inspectors?

    Applications have been invited by advertisement in the public Press. The Advisory Committee appointed, in accordance with the recommendation of the Royal Commission, to assist me in the administration of the Act have the names of all applicants referred to them to report and advise me in the selection of the best candidates.

    Experiments On Dogs And Cats

    7.

    asked the Secretary of State for the Home Department whether he can see his way to afford the special protection which is now given to horses, asses, and mules to dogs and cats, as recommended by the majority of the recent Royal Commission; whether the recommendation of the Commission as to pithing has been carried out; and whether special records of experiments are now required, as recommended by the Commission?

    I have given my best consideration to the remarks of the Commission on the first subject—they are so qualified that they can hardly be described as a "recommendation." I am advised that legislation would be necessary to require a special certificate for experiments on dogs and cats in cases where the experiments are carried out wholly under anæsthetics, where the experiments are not wholly under anæsthetics a certificate is now required. I have accepted the recommendations of the Commission as to pithing and special records of experiments, and they are being carried out.

    British Federation For The Emancipation Of Sweated Women

    9.

    asked the Secretary of State for the Home Department whether his attention has been called to the existence of a society known as the British Federation for the Emancipation of Sweated Women; whether he is aware that Mr. Belcher, director of the said society, has been involved in many building speculations and has been twice bankrupt, and that he has admitted that of the £3,000 received in contributions from the charitable public £1,200 has been spent in newspaper appeals for money and much of the remainder in salaries to so-called commissioners; whether he is aware that the headquarters of the federation has been the office of certain patent medicines, of which also Mr. Belcher is the proprietor, and that the federation has been repudiated by all the organisations that have to do with questions of women's employment; and, if so, whether, having regard to all the facts of the case, he will instruct the Public Prosecutor to take action with regard to the federation?

    No, Sir, I had not heard of this society until my hon. Friend's question appeared on the Paper. It has not come under the notice of the Home Office or of the Metropolitan Police, but I will make inquiries.

    Suffragist Prisoner (Miss Mary Richardson)

    10.

    asked the Secretary of State for the Home Department whether he will make inquiries into the allegation of Miss Mary Richardson that, while on hunger strike in Holloway, she was told by Dr. Pearson that next time she would be kept for fourteen days until she was a skeleton and a nervous and mental wreck, and then she would be sent to an institution where they look after mental wrecks; whether there is any truth in this allegation; and, if so, whether Dr. Pearson has any authority for making the statement, and does it indicate a change of policy in respect of the treatment of hunger strikers?

    No, Sir, the statements quoted in the question are wholly inaccurate. Dr. Pearson did not tell Miss Richardson that she would be kept for fourteen days, or threaten her in any way, but he did seriously warn her of the mischief she might do to herself, physically and mentally, by refusing food, and this warning was the more necessary as the prisoner appeared to be under the impression that a period of starvation in prison would be beneficial as a rest to her brain. It is perfectly right that any doctor, if a patient under his charge is refusing to take food, should warn her of the injury she is inflicting on herself.

    My right hon. Friend is aware that Miss Richardson has sworn an affidavit?

    Metropolitan Police

    12.

    asked the Secretary of State for the Home Department if, as the result of his further inquiries, it has been decided to take any action arising out of the sale at public meetings of a pamphlet by ex-Inspector Syme, in which the gravest charges are made against the heads of the Metropolitan Police Force and the Home Secretary; and if the Scotland Yard authorities have issued permits to ex-Inspector Syme to hold meetings at which it was known these charges would be made?

    The reply to the first question is in the negative. Permits to hold meetings are not issued; written notice of the meeting has to be sent to the Scotland Yard authorities, whose action is confined to seeing that the Regulations made by the Commissioner of Works are complied with, and that order is preserved at such meetings.

    Are we to infer from that reply that this man is going on with these meetings?

    Well, Sir, I understand that the Director of Public Prosecutions has been consulted upon the point, and the conclusion to which the authorities have come is that it would not be possible to bring any action?

    Is the Home Secretary aware that the obvious construction is that these charges are true, and that the Home Office dare not prosecute?

    My hon. Friend must understand that inquiries have been held more than once, and there has been a case in the Courts in which Inspector Syme's charges have been proved to be untrue.

    13.

    asked the Secretary of State for the Home Department if he will say how many resignations have taken place from the Metropolitan Police Force since the beginning of 1912; what was the strength of the constable force in December, 1912; how many constables had less than eight years' service; and how many less than four?

    The effective strength of constables on the 31st December, 1912, was 17,036. Of these, 8,973 had less than eight, and 5,128 less than four years' service. Since the 1st January, 1912, the resignations have been:—

    On pension or gratuity: Four superintendents, 91 inspectors, 139 sergeants, 628 constables.

    Voluntarily, without being entitled to pension or gratuity: One inspector, 9 sergeants, 291 constables. In addition, 23 police-constables with less than three years' service resigned as being unfit.

    Lead Poisoning (Portsmouth Gunwharf)

    19.

    asked the First Lord of the Admiralty if the case of Mr. Hawkins, a Government employé, Portsmouth Gunwharf, who was certified as suffering from lead poisoning by the factory inspector, and whose diagnosis was not upheld by the medical referee, will be reopened and reconsidered; if Mr. Hawkins will receive compensation, seeing that there is now no doubt as to the cause of his ill-health; and whether the registrar had the right to send Mr. Hawkins before a non-specialist doctor, however able?

    The procedure prescribed by the Workmen's Compensation Act has been followed, and Mr. Hawkins has been declared not to be suffering from any disease entitling him to compensation under that Act. The Secretary of State for War has no power to reopen consideration of the case. As regards the last part of the question, the registrar has to act in accordance with the law, and it is not for the Secretary of State for War to express any opinion on the matter. I may add that Mr. Hawkins has received a gratuity on discharge under the provisions of the Superannuation Act, 1887.

    Light Keepers (Pay)

    21.

    asked the President of the Board of Trade whether he has received Petitions from the light keepers asking for increased pay; when such Petitions were received; and what is the reason of the delay in dealing with their requests?

    The Board of Trade received letters from the general lighthouse authorities in April last recommending an increase of pay and allowances to the light keepers in their services. The grounds on which the re-commendations were based were most carefully considered by the Board, but having regard to all the circumstances and especially to the fact that an increase of pay and other benefits was granted as recently as 1909 at an annual cost of £3,155, they came to the conclusion that they were not justified in sanctioning the further increases recently proposed. With regard to the last part of the question, I have no knowledge of any delay in dealing with the matter.

    Steamship "Ophir" (Firemen And Trimmers)

    24.

    asked the President of the Board of Trade if he is aware that the Royal Mail steamship "Ophir" signed a crew at Tilbury in June last; that among the crew were a large number of firemen and trimmers who were signing for their first voyage and were without experience; if he can say how many firemen and trimmers were signed on without discharge books; did one of the seamen die when the vessel was in the Red Sea; were the trimmers compelled to work six-hour shifts instead of four-hour shifts; was this owing to the incompetence of the inexperienced firemen and trimmers; was the vessel twenty-four hours late in arriving at Colombo; was this also the result of incompetence on the part of men who were on their first voyage; and will he call the attention of the owners to the number of new hands taken on the ship?

    Of the sixty-five firemen and trimmers engaged at Tilbury, five firemen and ten trimmers did not produce discharge books. The five firemen had served previously at sea, but the ten trimmers were taking their first voyage. I have no information with regard to the remaining points raised by my hon. Friend, but I am making inquiries and will communicate further with him.

    Agricultural Organisation Society (Ireland)

    27.

    asked the Secretary to the Treasury if he will say whether the Irish Agricultural, Organisation Society have intimated their acceptance of the third condition in the Treasury letter of the 1st April, 1913; and, if not, whether this condition is being further considered by the society, or have the Treasury placed any modifications of this condition before the society for their consideration?

    I would refer the hon. Member to the answer given by my right hon. Friend the Prime Minister to my hon. Friend the Member for Monmouth District on 10th July.

    British Central Africa Railway (Blantyre To Nyassa)

    31.

    asked the Secretary of State for the Colonies if he will state what is the reason for delay in constructing the proposed railway from Blantyre to the Nyassa, in British Central Africa; and, if he can say when the work will be undertaken?

    It has not yet been found possible to arrange for the construction of the line in question, and I am unable to say when the work will be undertaken.

    Royal Navy

    Accountant Officers

    20.

    asked the First Lord of the Admiralty if he is aware that an official representation has been laid before the Lords Commissioners of the Admiralty stating the fact that during the last fifty years not one single accountant officer of the Royal Navy, exclusive of secretaries and retired officers since employed outside the Navy, has been recommended by their Lordships for any mark of distinction, and pointing out that such a state of affairs was peculiar to these officers and to no other service of any description under the Crown, and if he can give any reason for this; and if he will consider the matter?

    The reply to the first part of the question is in the affirmative. The claims of all officers of the accountant branch, including secretaries, will continue to receive consideration.

    National Insurance Act

    Prudential Approved Society (Members In Scotland)

    23.

    asked the Secretary to the Treasury if he will state the estimated total amount of transfer value of members resident in Scotland of the Prudential approved society for men, the Prudential approved society for women, and the National Amalgamated Society, assuming average ages for the purpose?

    As I informed my hon. Friend on the 6th instant, the necessary data for a proper estimate are not available, and I fear that a calculation on the hypothesis suggested by him would be liable to prove misleading.

    Is it not a fact that the Treasury is calculating on the average age now?

    I am informed that that is not so, and that no reliable information, can be given, except after investigation in each case.

    Is my hon. Friend aware that for all practical purposes the number may be taken at two millions.

    Poor Law Medical Service (Ireland)

    26.

    asked the Secretary to the Treasury if he will say to what amount annually the cost of the Poor Law medical service in England and Wales is paid by Exchequer Grants; this being in the circumstances an equivalent to the amount spent on the Poor Law medical service in Ireland, whether Ireland's share of the 2s. 6d. per head increased expenditure for the better working of the National Insurance Act on the 800,000 persons whom the Irish Commissioners expect to have insured presently is £100,000, instead of the £50,000 offered; having regard to the distances which country doctors in Ireland have to travel, and that they are not to benefit from the proposed extension of medical benefit to county boroughs in Ireland, whether they will be paid the 2s. 6d. per head to which the existing law entitles them as in England and Wales; and, if not, will he, for their information, state the reasons?

    The points raised in the first part of the question are matters for argument which I am afraid I cannot carry further than I have done in my previous replies upon the subject. In the second part the hon. Member appears to ignore the fact that the payments in Great Britain to which he refers are payments not by way of endowment of the medical profession, but for services rendered in connection with medical benefit under the National Insurance Act (a benefit at present confined to Great Britain). I may, however, add that the question of an increase in the Grant of £50,000 in respect of expenses arising on account of the absence of medical benefit in Ireland is under consideration.

    Occasional Overtime

    28.

    asked the Secretary to the Treasury whether his attention has been called to the case of Watson Whiley, employed at Bowbridge Dye Works, near Stroud, in the county of Gloucester, who receives a weekly wage of 12s. for 55 hours' work, and whose weekly contribution in respect of health insurance would, but for occasional overtime, amount under Schedule II. of the National Insurance Act, 1911, to 1d. per week; whether he realises that in consequence of his doing overtime work for a single hour in the week, for which he receives 3d. extra, the sum of 3d. in lieu of 1d. is deducted from his wages in respect of health insurance, so that in effect he receives remuneration at the rate of for that hour; whether this is a correct interpretation of Schedule II. of the Act; and, if so, whether he can secure that an Amendment to the National Insurance Act (1911) Amendment Bill shall be introduced during its passage through the House of Lords in order to avoid its unfair operation in such cases in future?

    The Schedule has been correctly interpreted in the case which the hon. Member cites. Where the rate of remuneration is exactly 2s. a working day, any increase, however small, in the rate for overtime has the effect of bringing the rate for the day above the 2s. limit. No Amendment of the Act would prevent such difficulties occurring in border-line cases.

    Unemployment Benefit

    23.

    asked the President of the Board of Trade whether the employés of Winwick County Asylum are much dissatisfied at being compulsorily insured under Part II. of the National Insurance Act; and whether, in view of the fact that these men are practically permanently employed and object to paying contributions from which they cannot expect to derive any benefit, he will grant an exemption to them under Section 107 of the National Insurance Act?

    In an application for exemption under Section 107 (4), made in July, 1912, on behalf of the employés of this asylum by one of their number, it was stated that the services of the employés could be terminated by notice given by the medical superintendent. It is not the practice to grant exemption under this Section unless the power of dismissal rests with the governing body, and not with any individual officer or officers. Subject, however, to the fulfilment of this condition, the Board of Trade will be prepared to reconsider the application in respect of the employés in question if, as I assume, they come under the provisions of the Asylum Officers' Superannuation Act, 1909.

    Cinematograph Films In Schools

    30.

    asked the President of the Board of Education if he can say whether and, if so, to what extent cinematograph films are now being used in the teaching of history, geography, or other school subjects in elementary, secondary, technical, or continuation schools; and whether, failing such present use, and considering the educational value of such pictorial representations, the Board is prepared to authorise local education authorities to employ such methods of instruction within their administrative areas?

    The use of the cinematograph for purposes of class instruction is very rare in those schools which come within the cognisance of the Board, though one or two instances are known to them. Its adoption by local education authorities does not require the Board's authorisation. The Board are marking inquiries into the subject, but until further evidence is forthcoming they are not prepared to express any opinion on the value of this method of instruction, which, as the hon. Member is probably aware, is still a matter of controversy among educationists.

    Does that reply mean that the Board of Education would not approve of the local education authorities themselves advocating the use of such films?

    The local education authorities do not require the Board's authorisation.

    British East Africa (Steamers On Victoria Nyanza)

    32.

    asked the Secretary of State for the Colonies if he is aware of the inadequacy of the steamers on the Victoria Nyanza and the railway in British East Africa to deal with the existing traffic; that the order already on hand for new boats and rolling stock is insufficient; that the existing state of affairs is so unsatisfactory that the Germans are now contemplating constructing a railway of their own to the lake; and that, if this is done, it will divert into German hands an enormous amount of carrying trade which we can retain by a forward policy at the present time; and whether he proposes to take any action in the matter?

    I understand that the recent congestion at the lake ports and on the railway has been relieved. One of the new cargo steamers for the lake is expected to be launched very shortly, and the material for a second steamer is already on the spot. The new lighter-tug which is to be employed in the Kavirondo Gulf will also be launched shortly. With these new boats and the considerable amount of new rolling stock which is coming forward for delivery. I trust that it will be possible to deal temporarily with the expansion of trade. I am now considering, as I stated in my reply to the hon. Member for East Nottingham on the 18th June, what further action it is desirable and practicable to take, and I hope next year to be able to commence a considerable further expenditure for these purposes.

    Can the right hon. Gentleman say when the new rolling stock will be delivered?

    Trade Disputes

    34.

    postponed the following question, of which he had given notice: To ask the Chancellor of the Exchequer, with regard to his statement in Parliament on 23rd July, 1912, that the Government had come to the conclusion that it would be necessary to deal in the immediate future with the problem of the settlement of trade disputes, and that it was an imperative necessity for a great commercial country like ours that we should have some machinery which would prevent great trade disputes from developing to a point which would drive trade away from the country, whether His Majesty's Government has yet resolved on any legislative action for the purpose of giving effect to the determination announced by him; and whether he will be in a position at an early date to formulate legislative proposals with a view to definite action in course of the next Session of Parliament?

    Could the right hon. Gentleman say whether a later day to put the question would be more convenient this Session or early next Session?

    I do not like to answer that question, but, of course, it would be more convenient next Session?

    Increment Duty

    35.

    asked the Chancellor of the Exchequer if the valuation for the purposes of Increment Duty in respect of the land at Bromley belonging to a working bricklayer named J. Dorling is less than the amount paid by him including interest on the purchase-money, which was paid in instalments; if so, whether, in the event of sale for the amount which the property has cost him, Dorling would be called upon to pay duty on the difference; and whether in these cases, where the interests of persons of the working class are affected, he will consider the possibility of taking special steps to explain their position clearly to them, particularly as regards the question of substituted site value, with a view to their being adequately safeguarded without recourse to legal proceedings beyond their means?

    The answer to the first part of the question is in the affirmative, if I may understand the hon. Member to refer to the assessable site value of the land as provisionally fixed. The answer to the second part is in the negative, while as regards the third part, the course indicated is one which the Revenue authorities have taken in Mr. Dorling's case and have sought, as far as possible, to follow in general.

    :I would like to ask whether the right hon. Gentleman thinks the tactics that have been adopted with regard to this valuation are likely to encourage thrift amongst the working classes, and does he think that many of them will understand the enormous number of documents which have been sent them to fill up?

    The hon. Member must form his own opinion, and answer his own question.

    Finance And Revenue Bills (Committee Stage)

    36.

    asked the Chancellor of the Exchequer why the Committee stage of the Finance and Revenue Bills has been postponed until the last week of the Session, seeing that he stated that the Budget would this year be passed at the usual time?

    When is it necessary to pass the Finance Bill under what I may call the "Bowles Act"?

    I cannot answer that question straight away. The hon. Member was in attendance when the Bill was discussed, and he knows as well as I do.

    I know that, and I have to see that it is within the time. I have assured myself as to that and satisfied myself.

    Will the right hon. Gentleman say why this stage has been postponed to the middle of August, when June is the proper time for the Committee stage of the Finance Bill?

    No. If the hon. Member will look up the precedents of his own party, he will find that it has been taken at a very much later period.

    Income Tax (Dr Elizabeth Wilks)

    37.

    asked the Chancellor of the Exchequer if on several occasions claims for the payment of Income Tax have been made upon Dr. Elizabeth Wilks, a married woman living with her husband; if distraints have been levied on her goods for the recovery of the taxes; if on one occasion the claim for the tax on her income was made on her husband, and if he was imprisoned for the non-payment of the same; if so, will he say by what legal authority the claims for the taxes were made upon Dr. Elizabeth Wilks and distraints made upon her property; and what reply does he intend to make to the claim lately submitted to him by her for the repayment of those sums exacted from her under these distraints?

    The answers to the first, second, and third parts of the question are in the affirmative. It has been ascertained that the claims for taxes which were made on Dr. Elizabeth Wilks, and the action taken under the authority of the District Commissioners of Taxes in connection therewith without protest at the time on the part of Dr. Wilks, should have been made on and taken against her husband, who was liable for tax on her income. No sum has been received by the Revenue on account of Dr. Wilks' income which was not due, and it would not, therefore, appear that the last part of the question arises.

    No. What happened in this case was that before she allowed her husband to pay the taxes, and this year she has avoided them altogether.

    Old Age Pensions

    38.

    asked the Chief Secretary for Ireland whether he will direct that an old age pension be given to Mrs. Kelly, living with her daughter within one mile of Portumna, as she is over seventy years of age, has no means, and dependent upon her daughter for support?

    I would refer the hon. Member to the reply given to his question on this subject on 17th March last. The Local Government Board have no power to direct that a pension be given to any person.

    42.

    asked the Chief Secretary for Ireland whether, seeing that the Local Government Board for Ireland based their decision on the application of Mrs. O'Connor, Turbrin, Castlegregory, county Kerry, for an old age pension on information which was inaccurate, steps will be taken to have the case reopened and justice done to this applicant?

    The Local Government Board have no power to reopen consideration of any case which has been decided by them, but it is open to the claimant, in the event of any change in her circumstances, to make a fresh claim for a pension.

    If the Local Government Board Act in a case like this on information that is inaccurate can they not take steps to alter their decision?

    Land Purchase (Ireland)

    40.

    asked the Chief Secretary for Ireland whether Messrs. Scanlan, Walsh, and Allman were appointed trustees to administer, on behalf of the people of Bandon, county Cork, two fields adjoining that town; whether these trustees have rendered any account to any authority since these lands were given into their charge; what rent have they received; and what use have they put it to?

    The Estates Commissioners cannot, from the particulars given, identify the case referred to.

    41.

    asked the Chief Secretary for Ireland whether the maps have been lodged of the Kylemore estate, Connemara, with the Congested Districts Board with a view of sale; whether the Congested Districts Board have yet made an offer of purchase for this estate; and, if not, when an offer is to be made?

    The maps and other documents in connection with the estate referred to have been lodged with the Congested Districts Board, and the property will be inspected and a decision arrived at regarding purchase as soon as practicable. The Board cannot at present say when an offer will be made.

    50.

    asked the Chief Secretary for Ireland if he is aware that agreements were signed some five or six years ago by the tenants on the Jacob estate, South Wexford, under the Act of 1903; can he say what has caused the delay in issuing a vesting order; is there any money available at present for payment to those landlords who sold for cash; and, if so, can he say when the sale of the Jacob property will be completed?

    This estate is on the principal register of direct sales (all cash) and, having regard to the claims of other estates, the Estates Commissioners are unable to say at present when it will be reached. The money available for land purchase advances during the current financial year is allocated amongst the various classes of sales in the manner provided by the Regulations made under Section 23 (8) of the Irish Land Act, 1903, and Section 4 of the Irish Land Act, 1909.

    52.

    asked the Chief Secretary for Ireland whether the dates on which the purchase agreement forms for the purchase of the estate of II. J. B. Clements, at Manorhamilton, were lodged with the Estates Commissioners; and when will the estate be vested in its order of priority?

    The purchase agreements referred to were lodged on 6th June, 1906. The Estates Commissioners cannot at present say when the holdings will be vested.

    53.

    asked the Chief Secretary for Ireland whether he is aware that Michael McGowan, of Conwell North, Glenariffe, county Leitrim, an evicted tenant on the Johnston estate, whose name was listed for a Grant, has, through the mistake of another tenant getting his Grant, been deprived of a Grant; and whether, having regard to the insanitary condition of his dwelling house and the ill-health of his family, the Estates Commissioners would make him a Grant to enable him to repair his house and improve his position?

    There was no mistake in this case such as suggested in the question. Michael McGowan's application was considered by the Estates Commissioners, and, in the exercise of their discretion, they refused to make him any Grant.

    56.

    asked whether the tenants of the Kildina estate of Lord de Freyne, that portion situate in Clooloo, rural district of Boyle (No. 2), county Sligo, so long ago as November, 1904, signed purchase agreements to the effect that in lieu of turbary the rent of every tenant would be reduced by 5 per cent., the purchase money to be calculated on the basis of the reduced rent; that interest on purchase price be charged at 3½ per cent. for a period of five years, thereafter to be at the reduced rate of 3½ per cent.; whether the Congested Districts Board, in whose hands the administration of the estate now rests, have ignored this agreement duly entered into, and are still pressing for the 3½ per cent. calculated on the old rent; and, if so, what steps will be taken with a view to securing for these tenants the terms to which they are justly entitled?

    Under the agreement signed by the majority of the tenants on the Sligo section of this estate in November, 1904, no reference appears to a reduction of 5 per cent. off the tenants' rents in lieu of turbary in calculating the purchase price of the holdings, nor was any limit fixed for the payment of interest. The tenants agreed to pay interest at 3½ per cent. until the holdings became vested in them. The Congested Districts Board, however, hope to provide turbary for all the tenants.

    Land Commission (Report)

    44.

    asked the Chief Secretary for Ireland what is the cause of the delay in publishing the Report of the Land Commission which was due on the 31st of March last; and if it will be laid upon the Table of the House before the end of the Session?

    The Report referred to was presented to Parliament on the 1st instant, and will, I understand, be circulated in a day or two.

    Venereal Diseases (Inquiry)

    46.

    asked the Prime Minister if it is the intention of the Government to appoint a Royal Commission to inquire into the causes and treatment of venereal diseases?

    48.

    asked the Prime Minister whether, during his consideration of the question of appointing a Royal Commission to inquire and report on the public health aspect of venereal disease, he will consider how far it would be possible and advantageous to get other Governments to join in making such a Commission international?

    The Government have agreed to institute an inquiry. Its precise terms and scope, and the character and composition of the body to be set up are still under consideration.

    Land Question (England)

    47.

    asked the Prime Minister if the proposals put forward by the Lord Advocate for dealing with the land problem in England in the speech made by him at Brislington on the 19th July represented the views of the Government as a whole or only his own individual opinions; if the latter, whether the Government is considering any suggestion for raising agricultural wages at the expense of landowners by a compulsory reduction of farm rents to counterbalance such rise; and what course it is proposed to adopt in cases in which the rents now obtaining show a bare profit, if any, to the landlord?

    I understand that any suggestions which the Lord Advocate may have offered in the speech referred to, expressed only his own opinions. As regards the last part of the question, I am not prepared to anticipate the proposals of the Government on the subject.

    Will the right hon. Gentleman consider the advisability of introducing a Bill to disendow landowners on the same basis as the Welsh Church Disestablishment Bill?

    Is the hon. Member aware that if this land only pays a bare profit now if it is disendowed he will get nothing?

    Education (No 2) Bill

    49.

    asked the Prime Minister whether the delay in proceeding with the Education (No. 2) Bill has been due to the notices for the rejection of the measure appearing under the names of three Members of the Opposition; and whether he has taken, or will take, steps through the usual channels to ascertain whether the Opposition will consent to the measure being taken after eleven o'clock as an uncontroversial Bill and thus permit the £100,000 voted by the House to be distributed among local education authorities in relief of the burden arising from loan charges, including those in respect of elementary education?

    One reason for not proceeding with the measure is that, in addition to the notices appearing on the Paper, we understand that it is regarded by the Opposition as controversial. In these circumstances, I regret that it will be impossible for the Government to attempt to press it into law this Session.

    Labourers (Ireland) Acts

    54.

    asked the Chief Secretary for Ireland why the Local Government Board for Ireland have not yet fixed the date of the local inquiry into the housing scheme, under the Labourers (Ireland) Acts, promoted by the Slievmargy Rural District Council, and embracing the erection of sixty badly needed houses in the district; and when the Local Government Board will hold the inquiry and allow the scheme to be proceeded with?

    The Local Government Board cannot consider the question of holding an inquiry into this scheme until they have dealt with the schemes lodged with them for other districts where the need for labourers' cottages is greater.

    Is it not a fact that the majority of the labourers in the Slievmargy district are living in houses that have been condemned as unfit for human habitation and is this not sufficient to show the urgency of the inquiry?

    I will bring the facts stated by the hon. Gentleman before my right hon. Friend's attention.

    St Joseph's Girls' Orphanage, Dublin

    55.

    asked the Chief Secretary for Ireland whether his attention has been called to the arrangements being made by or on behalf of the managers of St. Joseph's Girls' Orphanage, Mountjoy Street, Dublin, for the holding of a public lottery to raise funds for that institution; whether more than 50,000 notices of the lottery have been issued broadcast to the public through the post describing a large number of prizes to be drawn, of which several consist of sums of money, and intimating that cheques and Post Office orders for the purchase of tickets should be made payable to Mrs. Farrell, superioress of the institution and that the winning numbers will be published in the "Freeman's Journal" of the 12th September, 1913; and whether he proposes to take any steps in the matter?

    The attention of my right hon. Friend has been called to this matter. The facts appear to be as stated in the question. In accordance with the advice of successive Law Officers in Ireland that lotteries held for charitable or religious purposes should not be interfered with it is not proposed to take any action in this case.

    British Army

    Ross-Shire Mountain Battery

    asked the Secretary of State for War whether he is aware that, after their annual training, the left section Ross-shire Mountain Battery left Barry for Stornoway at 9.30 p.m. on the 25th July and reached Inverness at 6.30 a.m, on the 26th July; that there the corporal and two privates left the train, there being no order against it, to see relatives, and proceeded by the ordinary day train to Kyle of Lochalsh, for Stornoway, an hour or two afterwards; that on arrival at Kyle of Lochalsh the officer commanding the Stornoway contingent, who was awaiting the train, took the corporal to a waiting room and divested him of his stripes without even asking for an explanation; and whether, in view of the fact that there was no semblance of a trial before this peremptory action was taken and that local feeling on account of it has been aroused, he will have inquiries made and this action corrected?

    Is my hon. Friend aware that I gave notice of this question ten days ago, and that I was promised an immediate reply, and will he, in view of the urgency of the matter, see that I get an answer before the end of the Session?

    I was not aware of that fact, but I will do my best to expedite the matter.

    Why does it take longer to get a reply to this question than it took to deprive this man of his stripes?

    Plymouth Garrison

    61 and 62.

    asked the Secretary of State for War (1) how many permanent passes granting permission too men below the rank of colour-sergeant to wear plain clothes within the limits of the garrison were in force in the Plymouth district in 1912–13 under the provisions of the Plymouth Garrison Standing Orders; of these permanent passes, how many instances were reported of an abuse of the privileges accorded; and (2) if he will consider the advisability of excluding the port of Plymouth from the Southern Command Order 404 and of permitting Plymouth Garrison Standing Orders, 1912, to be again put into force, owing to the fact that the port of Plymouth is a big naval station and that sailors have extensive privileges as regards plain clothes?

    The General Officer Commanding-in-Chief has been requested to furnish a report.

    Licensed Motor Vehicles (Adviser To Commissioner Of Police)

    asked the Secretary of State for the Home Department if Mr. W. Worby Beaumont, who acts as adviser to the Commissioner of Police in regard to the construction of licensed motor vehicles, is also consulting engineer to any omnibus company running licensed vehicles in the Metropolitan Police area; if so, the dates when he took up these respective positions; what are the duties he performs in regard to motor vehicles, and do these duties include the supervision of tramcar design; if Mr. Beaumont has expressed any opinion as to the advantages or disadvantages of tramways as a means of urban street transit; and, if so, whether this opinion was expressed in his capacity as adviser to the police or adviser to the omnibus companies?

    Mr. Worby Beaumont has been adviser to the Commissioner of Police in regard to the construction of licensed motor vehicles since December, 1905. His duties, which are advisory only, do not include the supervision of tramcar or of omnibus or cab design; but he is consulted on technical engineering points affecting the construction of cabs and omnibuses, and occasionally of tramcars. I believe that Mr. Beaumont has for many years given public expression to his personal views as to the advantages or disadvantages of various means of street transit, but these are his personal views only, and he has not been asked to express any opinion in an official capacity. Mr. Beaumont at the time of his appointment as adviser to the Commissioner of Police was, I believe, already consulting engineer to all the motor omnibus companies then plying in London, and also to various tramway undertakings in London and elsewhere.

    May I ask whether the right hon. Gentleman thinks it advisable in the interests of the travelling public that a gentleman who is a consulting officer of an omnibus company should be appointed as adviser to the Commissioner of Police?

    The gentleman in question was consultant to an omnibus company, a tramway company and various companies, but, if you are to have an expert who is a master of his subject, it is inevitable that he should be a person employed by companies.

    Would it not be possible to have an altogether independent authority at the Police Office?

    You could only have an independent authority, not employed by omnibus and tramway companies, if you had someone whom it was not considered expedient by the outside public to employ. He would not otherwise acquire his knowledge.

    San Francisco Exhibition

    22.

    asked the President of the Board of Trade whether an official refusal has been given to the invitation to participate in the Panama Exhibition at San Francisco; and, if so, the reasons for withholding official recognition; and whether, in view of the importance attached to this exhibition by the American people, the Board will reconsider its decision in this matter?

    I would refer my hon. Friend to the answer given on the 5th instant by my right hon. Friend the Secretary of State for Foreign Affairs, of which I am sending him a copy. My right hon. Friend asks me to say that, through a mistake, the answer supplied to and reported in the Press was incomplete. The full answer, as given, will be found in the OFFICIAL REPORT for the 5th instant, column 1246.

    Orders Of The Day

    Business Of The House

    May I ask the Prime Minister what business it is proposed to take late to-night?

    We proposed to take the two Orders dealing with the Appellate Jurisdiction Bill; the Telegraph (Money) Bill, Third Reading; and the two Orders with regard to the Public Works Loans Bill. Then we hope it may be possible by arrangement to pass the Second Reading of the seven Charity Bills on the Paper.

    May I ask the Prime Minister whether there is any truth in the statement which has appeared in the Press that the Government contemplate dropping the Revenue Bill or any Clause of the Revenue Bill?

    The Bill is coming on later, and my right hon. Friend the Chancellor of the Exchequer will deal with it.

    Revenue Bill

    Further considered in Committee.—[ Progress, 1st August.]

    Reversion Duty.

    Clause 8—(Duty To Deliver Account For The Purposes Of Reversion Duty)

    (1) Section fifteen of the principal Act shall be read as if the following Subsections were substituted for Sub-sections (2) and (3) thereot:—

    "(2) Every lessor shall, on the determination of a lease the original term of which exceeded twenty-one years, deliver an account to the Commissioners setting forth the particulars of the land and the estimated value of the benefit (if any) accruing to the lessor by the determination of the lease.

    "(3) If any person who is under an obligation to deliver an account under this Section fails to deliver such an account within a period of three months after the determination of the lease, he shall he liable to pay to His Majesty a sum not exceeding ten per cent. upon the amount of any Reversion Duty payable under this Act, or, if no such duty is payable, ten pounds and the like penalty for every three months after the first month during which the failure continues."

    Several hon. Members had given notice of a Motion to postpone Clause 8 till after Clause 11.

    With regard to the Motion standing in the name of the hon. Member for the Tradeston Division (Mr. Dundas White) and others to postpone Clause 8 till after Clause 11, I ought to point out that a Motion to postpone a Clause ought to be to postpone it to the end of the other Clauses and not till a particular place in the Bill. I apprehend, however, that its purpose is to ask the Government for a statement with regard to the further Clauses of the Bill. That would not be in order on a Motion to postpone the Clause, and I would suggest that the hon. Member should substitute for it a Motion to report Progress.

    I beg to move, "That the Chairman do now report Progress, and ask leave to sit again."

    I make this Motion in order to ascertain the position in which we stand. I may say that my hon. Friends and I have put down the Motion which stands on the Paper in order to raise at the earliest moment the question of the attitude which hon. Members of the Opposition in particular are taking upon Clause 11. Our position has been plain and simple from the outset. We have made it perfectly clear that we hold strong views in favour of Clause 11. We regard it as the most important Clause in the Bill, and it is the only one for which we have any desire. It was in view of the importance of Clause 11 from our point of view that we raised no objection on the Second Reading and that the Second Reading was obtained very easily. When the measure came up for the Committee stage the same thing happened. We raised practically no objection to it. I took the opportunity of pointing out that we regarded Clause 11 as an extremely important Clause, and, owing to the impression we received from what was said on both those occasions, we practically raised no objection to the other Clauses, and not only was the Second Reading passed, but Clauses 1 to 7 were also obtained. I think our impressions were quite justified by what was said by the hon. and gallant Member for Chelmsford (Mr. Pretyman). It will be within the recollection of the House that when the Bill came up for Second Reading, instead of the Speaker calling upon the Chancellor of the Exchequer, he called upon the hon. and gallant Member, who raised no point of Order till after he had spoken eleven or twelve columns of the OFFICIAL REPORT. He then raised a point of Order with reference to Clause 6. On that Mr. Speaker pointed out that, when he called on the hon. Member, he thought he had intended to raise a point of Order, and it was obviously inconvenient to raise a point of Order in the middle of a speech. The point of Order that had been raised was with reference to Clause 6. The hon. and gallant Gentleman said:—
    "That is my point. My hope was that it would not affect the existence of the Bill or the Clause."
    Thereupon Mr. Speaker again said:—
    "It is not desirable to introduce points of Order like this. It will be better for the right hon. Gentleman to reply to the hon. Gentleman in the course of his later reply."
    Then the hon. and gallant Gentleman again said:—
    "There is also a point of Order on Clause 11. I do not know whether or not it will be proper to raise it now."
    I ask the House to remember that the hon. and gallant Gentleman said this after he had already spoken ten or twelve columns of the OFFICIAL REPORT. Mr. Speaker thereupon added: —
    "It is more convenient, as I indicated just now, not to have points of Order put in the middle of a speech, but at the beginning. I waited for some little time when the hon. and gallant Gentleman rose to see whether he was going to raise his points, but he did not. Preliminary objections of this sort should be taken before the Debate proceeds.
    Then Mr. Pretyman rejoined:—
    "I thought, Sir, it was better to raise it when I came to the Clause."—[OFFICIAL. REPORT, 20th July, 1913, col. 320.
    The Chancellor of the Exchequer in dealing with Clause 11, later on, with the question of what I may call the retrospective period in the matter of improvements, indicated that it might be possible to give an extension from thirty years to fifty years. In these circumstances we, on these benches, had no doubt about the Clause being safe. A similar course was taken when we came to the beginning of the Committee stage. There, again, the hon. and gallant Gentleman moved to report Progress in order to put himself in order to deal with various points. He asked about Clause 11 and the Chancellor of the Exchequer said on coming to that Clause, in view of the criticisms passed during the Second Reading Discussion, it might pos- sibly be it was not a fair limit, more especially so far as drainage was concerned, and their present view was that they might extend it to fifty years. To that the hon. Member for the Ayr Burghs (Sir George Younger) said, "Not enough." My right hon. Friend the Chancellor of the Exchequer remarked that that was all he had to say at present, but he gave an indication that there must be a record made of the improvements for fifty years. There is one other point to which I would like to, call the attention of the House and it was the concluding observation of the hon. and gallant Gentleman, in which he said he only desired to indicate to the House and to ask whether the Clause was within the scope of the Bill. We understood naturally that the Clause might be considered safe subject to the Amendments foreshadowed by my right hon. Friend, but in view of what has happened since then on this Clause, it seems not improbable that the hon. and gallant Gentleman and his Friends will ask that it be dropped. In these circumstances it is only right to raise the question at the outset, and while I have no authority to speak for the hon. Member for Edinburgh, the Chairman of the Land Values Group, I do say for myself, and I think I can say it for him and his Friends, that we regard this Clause as a very important Clause and as, indeed, a Clause which is the saving of the Bill. We can assure the hon. and gallant Gentleman and his Friends, if they think that by taking the course they are taking they are going to get the particular Clause they want and to drop the particular Clause we want—

    A question of this sort is only allowable to draw a statement from the Government, and not to raise questions of general controversy. We cannot allow a Second Reading Debate.

    I bow to your ruling. I will put the matter in this way: We really want to know what the intentions of the Government are in regard to this Clause. We have all along regarded it as an integral part of the Bill, and if it is the desire of this House that this Bill should pass, our desire is that Clause 11 should be in it. We should like to be assured that the Government are prepared to regard Clause 11 as an integral part of the Bill and to insist upon it as well as on the other Clauses. That is the question my hon. Friend and I wish to raise. We see breakers ahead, and we consider ourselves bound to take those steps which any Members of this House naturally would take to frustrate a proposal such as would appear from the Opposition Press to be contemplated in certain quarters. Our object is to secure Clause 11 being retained in this Bill. We want the Government to regard it as part and parcel of the measure, and if they will do that we see no difficulty in the Bill passing very shortly.

    I do not say necessarily as it stands, because my right hon. Friend has foreshadowed an extension from thirty years to fifty years, but I would suggest that it be passed subject to certain small and not unreasonable Amendments which have been indicated. We want to know whether or not we can have the Clause in substance. It is because of rumours that we have heard on this point that I am rising to give my right hon. Friend an opportunity of telling the Committee exactly how matters stand at the earliest posible moment.

    My hon. Friend has asked me a number of questions. I think it is rather for the Government to ask him and his Friends what their intentions are with regard to this Bill. It is perfectly clear the Bill can only pass as a non-contentious measure. Anyone looking at the Order Paper, and seeing about thirty pages of Amendments, must realise that if hon. Members who have put the Amendments down intend to persist in them it will be quite impossible to carry the Bill. The Prime Minister three weeks ago, in making his statement with regard to the business it was intended to proceed with, made it quite clear to the House that this Bill could only be treated as a non-contentious measure. There was a great deal of pressure brought to bear by both sides of the House upon him to get the Bill through, but the right hon. Gentleman, while promising to find some little time, indicated on that occasion that he could not find time for a Parliamentary struggle to be prolonged over several days. The Revenue Bill is a Bill which lends itself to such a struggle. You can move Amendments to every part, and to every law which affects the collection of the revenue of this country, and you could cover the Order Paper with even more Amendments that the ingenuity of my hon. Friends has enabled them to devise. What I would like to elicit before this Debate goes on is whether it is intended to treat Clause 11, on the one hand, as contentious or, on the other hand, to treat its omission as contentious. I had some discussion with the hon. and gallant Gentleman and I told him quite clearly that the Bill cannot go through if there is any opposition to any part. I do not mean to say if there are Amendments which can be discussed shortly, but if any part of the Bill is to be treated as really contentious we cannot possibly get it through. The hon. and gallant Gentleman intimated that, if Clause 11 were dropped, he would not regard the remainder of the Bill as contentious, subject to certain Amendments being made in other parts.

    I understood from my hon. Friends sitting below the Gangway that they did not consider Clause 11 as satisfying their requirements at all. My hon. Friend the Member for Salford (Sir W. Byles) bears me out in that view. As a matter of fact, a letter appeared from the United Committee for the Taxation of Land Values, which criticised the Clause and showed that, from their point of view, it was not regarded as satisfactory at all. Seeing that hon. Members on this side of the House who pressed the Government were not satisfied with the Clause, and seeing that hon. Gentlemen opposite opposed the Clause, 1 thought there would be the most perfect unanimity about dropping it. When the first intimation was given that the Clause was to be dropped, at once its merits were appreciated. It is a little belated to discover merits in the Clause. I entered into an arrangement with the hon. and gallant Gentleman. I took it that it was a Clause which did not commend itself to the hon. and gallant Gentleman and his Friends, and that it was not a Clause the beauties of which were appreciated by my hon. Friends below the Gangway. Inasmuch as I discovered that the rest of the Bill commended itself to the vast majority of the Members of the House, I thought the best thing to do was to carry the Bill through seeing that it was late in the Session without the Clause, I will not call it the obnoxious Clause, but the Clause which was not acceptable to anyone. That was the arrangement I made. If the hon. and gallant Gentleman holds me to it, I shall stand by it. I regard it as a Parliamentray arrangement, and I must stand by it. I could not go back upon it. Therefore, the position is this: If Clause 11 is regarded as contentious by the Opposition, the Bill cannot go through, and if the dropping of Clause 11 is regarded as contentious by my hon. Friends, there again the Bill must be dropped. My suggestion is this. I do not despair, even now of passing the Bill, seeing that the bulk of it commends itself to every section in the House. [HON. MEMBERS: "No, no."] At any rate, I think I can say that the bulk of the Bill commends itself to the vast majority. I think that is true of both sides. I know that certain of my hon. Friends rather protest against parts of the Bill, because they think I have gone too far in the direction of concessions. I promised Clause 11, or something of this sort, earlier in the Session, and definitely promised it. I thought I had redeemed that promise. My hon. Friends do not think I have done so. I never thought it possible to carry through a contentious Revenue Bill late in the Session. [HON. MEMBERS: "Hear, hear!"] Hon. Members opposite think it ought to have been introduced earlier in the Session. That is a criticism which hon. Gentlemen are perfectly entitled to put forward. That is another matter, which raises issues of a very different character, that do not appear to be in order upon this particular Motion. What I suggest is this: That the Motion to report Progress should be assented to. Unless the hon. and gallant Gentleman can see his way to reconsider his decision with regard to Clause 11, I must be held to the arrangement I made with him, and I stand by it. Therefore, it rests with him, so far as I understand it. [HON. MEMBERS: "And with your hon. Friends."] I have so put it to them. The hon. Gentleman may rest assured that I have put it before them. I suggest that Progress should be reported and that we should go on with the next business, and during the next twenty-four hours—

    I do not think it will be easy to take it to-morrow. For the moment we will put it down for tomorrow in the hope that during the next twenty-four hours reason will prevail on both sides, and that we may be able to arrive at some decision. I do not want to tie the hon. and gallant Gentleman at this point. I am sure he is quite prepared—

    The right hon. Gentleman does not mean to suggest that my hon. and gallant Friend has not been reasonable. The right hon. Gentleman made that agreement himself.

    No, no. The right hon. Gentleman is a little too sharp there, if I may say so. I do not think he has been reasonable in regard to Clause 11, but I do not want to discuss that. I am in the hands of the Opposition. They were in a position to dictate terms so far as the Bill was concerned, and I accepted them. I do not think I can say that the attitude of the Opposition is a reasonable one. I cannot discuss that now, because it is not relevant to the Motion. For the moment; I can do nothing except to assent to the Motion, because it is unreasonable to go on ploughing through the Amendments. I suppose most of them are in order, and it would be possible to move an interminable series of Amendments which would be in order. We should only be wasting time to proceed at this stage. Therefore I assent, on behalf of the Government, to the Motion to report Progress.

    The Chancellor of the Exchequer certainly put his finger on the Government's weak place when he remarked that these difficulties were largely due to the time of the Session at which the Revenue Bill has now been introduced. This is what we always contended would occur. The real difficulty with which we are faced is not the difficulty raised by hon. Members below the Gangway opposite, nor the difficulty raised from this side of the House; it is the difficulty of time. For that the Government are wholly responsible, and they cannot divest themselves of their responsibility. I want to make that point perfectly clear. As to the issue raised by the right hon. Gentleman and the hon. Gentleman who spoke before him, the right hon. Gentleman, most unjustly, as he knows perfectly well, has not put the case fairly. [HON. MEMBERS: "Oh, oh!"] I do not wish to put it higher than that he has not put the case fairly when he indicates to the House, as I think he did indicate, that the whole of the opposition to Clause 11 proceeds from this side of the House. He is perfectly well aware that there is a large section of hon. Gentlemen opposite who object to Clause 11 just as strongly as we do. [HON. MEMBERS: "Hear, hear!"] Can the Chancellor of the Exchequer deny that? He does not deny it.

    If I did not say so, I meant to say so. I was under the impression that I had said so. [HON. MEMBERS: "You did say so."]

    I listened to the Chancellor of the Exchequer most carefully, and if he did say so I do not think the House understood it. The Chancellor of the Exchequer threw the whole onus as to the opposition to Clause 11 upon me personally, and upon the Opposition.

    I am perfectly certain that I said it was a Clause which did not seem to be acceptable in any quarter of the House.

    No. On the contrary, I said that my hon. Friends below the Gangway objected to it, and I quoted a letter about which the hon. and gallant Gentleman knows something, and I said it did not appear to me that it was acceptable in any quarter of the House.

    Up to that portion of the right hon. Gentleman's speech I have no quarrel with him, but in the last phrase he used he repeated two or three times words which were intended to throw the whole onus of the opposition to Clause 11 upon this side of the House. I will therefore bring him back to what be said in the earlier part of his speech, in which he stated that on both sides of the House there was serious objection to Clause 11. Let us put it on that ground, which is fairer to everyone in the House. So far as the rest of the Revenue Bill is concerned, it deals with particular hardships, which are recognised as hardships on both sides of the House, arising out of particular cases under the Land Taxes of the Finance Act, 1909–10. Amendments have been agreed between the Chancellor of the Exchequer and hon. Gentlemen which meet with almost universal approval on both sides of the House. These Amendments are uncontroversial in this sense, that we have undertaken on this side of the House that where an Amendment is not accepted by the Chancellor of the Exchequer, however desirable we may think it, we will confine ourselves to shortly stating our case; we shall not press them, and we shall do nothing, in regard to our desire for further concessions, to restrict or in any way to obstruct the passage of the Bill in its present form as agreed to between the Chancellor of the Exchequer and ourselves. The only point, therefore, which arises is Clause 11. Clause 11 raised the whole vexed question of valuation. I think it extremely doubtful whether it is in order at all. Our objection to Clause 11 is not an objection to the objects which Clause 11 purports to be framed to carry out, but is an objection to the Clause as it stands, an objection to passing a sixth value upon five values, already difficult to ascertain, on agricultural land. It must open up the whole question, and it is quite obvious that, taking the views of hon. Gentlemen below the Gangway as they have been stated here, taking our views and the views of hon. Gentlemen above the Gangway representing agriculture on the other side, it is perfectly clear that two or three days of acute discussion would be required to frame a satisfactory Clause.

    When I suggest that Clause 11 should be dropped, my attitude is simply this: The Chancellor of the Exchequer has definitely undertaken to introduce a Revenue Bill and to carry it through its further stages fairly early next Session. I have also in mind the Prime Minister's statement that this Bill could not possibly pass if controversial matter were introduced into it. Clause 11 is, and must be, highly controversial, and therefore, in the interests of the rest of the Bill, my suggestion is that both sides—we taking one view of Clause 11 and hon. Gentlemen opposite taking the opposite view—should be content to postpone our differences upon that question till next Session and not to drop the Clause in the sense that it is dropped entirely, but postpone it till next Session, when the Government will be bound to give us the necessary time to discuss this very difficult question of valuation. Surely we can agree to drop tins controversial Clause, which it is hopeless to come to an agreement upon in the time at our disposal, and if hon. Gentlemen opposite persist in the course they have adopted, litigation will continue to fall upon thou sands of innocent people. We, on this side of the House, are bound to the country to look to this question of valuation carefully, and we cannot allow a slipshod Clause to go through the House without proper discussion on that question of agricultural valuation, which is of enormous importance, without discussion, and we ask that the Clause should be postponed and that the Bill should be allowed now to go through in its uncontroversial form, and relief should be afforded to these small owners and builders from one end of the country to the other. I appeal to hon. Gentlemen below the Gangway on behalf of these people—there is no concession in the Bill to big owners particularly; it is a concession to small people under £160—whether they cannot postpone their desire to discuss valuation until next year, and allow the uncontroversial Bill to go through. Of course, if hon. Gentlemen below the Gangway refuse to modify the attitude which they have taken up we can do nothing but assent to the proposal that Progress should be reported for one more day, but the matter should certainly be settled. It is a very great inconvenience for hon. Gentlemen on both sides to be kept here, and the Chancellor of the Exchequer will have to make up his mind before this time to-morrow what attitude he proposes to take, but our attitude cannot be modified.

    The Chancellor of the Exchequer has very truly declared that this Bill, when it was first introduced, was looked upon as a non-controversial measure. We assented to it, and we still assent. The first six or seven Clauses contain matters which many of us did not like; we thought we were giving away a great deal more than we need, but we were quite content to let that pass, because we had Clause 11 which we were assured would pass. If, abstaining from doing anything to interfere with the Government or to interfere with what the hon. Gentleman and his friends and some of those on this side of the House wanted, we allowed this Clause to pass, we should have practically a non - contentious measure. It has now been intimated that Clause 11 is to be dropped. If Clause 11 is dropped it will be a contentious measure. The reason it was non-contentious was because it contained that very valuable Clause. The Chancellor of the Exchequer has declared that when we first saw that Clause, we declared our dissatisfaction with it. That is perfectly true. I understand some of my Friends wrote to the Chancellor of Exchequer, stating that they did not agree with that Clause at all.

    They said the Clause was not quite what they wanted. I myself said it was not a satisfactory Clause, and the right hon. Gentleman intimated that the Clause was substantially what we wanted. After reflection and consultation we came to the conclusion that it was better to accept the Clause as it was, even though it was not quite all that we wanted. I think that is a fair statement of the case.

    I do not want my hon. Friend to give an impression that he does not want to give. He never intimated this decision to me.

    4.0 P.M.

    I made use of the ordinary channels. I saw the Chief Whip. If Clause 11 is dropped the Clause would be very strongly opposed. The hon. Member for Chelmsford intimated that things had gone very smoothly until we came to this Clause. That is perfectly true. The hon. Member was getting all he wanted, and he had nothing to complain of, but he will have much to complain of if we do not get our part of the Bill. The measure was treated from the beginning as non-controversial, because we had Clause 11 it. Now the hon. Member wants to proceed with the Bill without that Clause. The Bill was well balanced between contending parties, but if in the middle of carrying out the contract you alter the Bill, I say it is unfair. The hon. and gallant Gentleman says. "We have got all we want, and you will get what you want next year." What guarantee have we that we will? It is not quite fair after six or seven Clauses have been passed to intimate that the bargain that was entered into is to be departed from. On behalf of my Friends and myself I say that unless we get Clause 11, we shall not look upon the Bill as non-contentious.

    The hon. Member (Mr. Price) has thrown some light on the various Clauses of the Bill which is valuable. Clause 11 was submitted at an earlier stage by the Chancellor of the Exchequer as a concession to the Opposition. It appears that it was not a concession to the Opposition, but a bribe to the hon. Gentlemen opposite. The hon. Gentleman speaks of the Bill as it stands as a well-balanced measure. I am not quite certain, but I think I understand what he means. There is a great deal he objects to in the earlier Clauses on the ground that it is unjust. He says that more is given away than ought to be given Away—I presume, therefore, more than justice demands. Does the hon. Gentleman object to my inference?

    My point was this: When you have a measure which gives something to hon. Members on the other side of the House, and something to hon. Members on this side, and when it is asked that the measure should be treated as non-contentious, it is not for an hon. Member on the other side to get up and say that it is a non-contentious measure while asking that Clause 11 should be dropped.

    The hon. Gentleman speaks as if the only people affected by the Bill were the hon. Member himself and my hon. Friends. That is not a useful basis on which to proceed, nor does it tend to the best interests of the country. Hon. Members' view is that they may give up a great deal of what is just and fair, if only my hon. and gallant Friend will in the name of other people submit to what he considers a grave injustice. Some barrister, I forget who it was, defended trial by jury by stating that although he had lost a great, many cases which he ought to have won, still he had won a great many cases which he ought to have lost, and therefore on the whole justice had been done. I have never heard any principle of reasoning quite comparable to that of the hon. Gentleman. I will leave to hon. Members that special point, and turn to the position, not of this or that Member, but of the House at large in regard to this matter. I think the House is in a position of some difficulty, and in danger of no little discredit. If hon. Members will permit me, speaking not merely for the Opposition, but for the House at large, I will say that hon. Members accepted with goodwill, and, I think, with eagerness, wherever they were sitting. seven Clauses of the amended provisions intended to remove hardships from which various classes of the community are suffering, or to remove obstacles which impede the provision of small houses, and the whole of this work is now in jeopardy because a small group in this House refuse to assent to the arrangement which the Chancellor of the Exchequer made with my; hon. and gallant Friend (Mr. Pretyman), because the Bill is only proceeded with at a time of the Session when any small minority can wreck it, if they are not satisfied.

    Under what circumstances did this Revenue Bill take its rise? The Chan- cellor of the Exchequer explained that they had to proceed rapidly with the taxing provisions of the Finance Bill, under the provisions of the Collection of Taxes Act, and that he could not give time earlier for this Bill. It is a curious commentary on that, that here we are now in the last week of the Session, I presume, and we have not yet got through Committee the Taxing Bill. The whole object of the Collection of Taxes Act was to have the Taxing Bill earlier, but we have not discussed it yet. The Revenue Bill was to give us the opportunity for full and free discussion of those points which the urgency in passing the Finance Bill prevented our having in connection with it. Now what is the position? Here is this Bill, in the main an agreed Bill, giving relief to large numbers of people in this country, and the whole is to be dropped, not because the sense of the majority of Members, on whichever side they sit, is not perfectly clear, but only because the Government have held off the discussion until a time, when they cannot afford to give it free discussion. It is to be dropped because it cannot be discussed, unless the House at large pays blackmail to a small number on the opposite side.

    Is the phrase which the right hon. Gentleman has just used in order?

    The phrase, I am afraid, has more than once before been used metaphorically, and applied to a number of hon. Members; if applied to an individual it would be out of order.

    I think I was right in saying that the House is in a position of great difficulty, and in danger of not a little discredit. The opinion of an overwhelming majority is to be overruled by a small group. The only way in which that can be avoided is by the Government giving time. I do not say that any of us are fit, Government or Opposition, to prolong the Session now, and, Heaven knows, it is the last thing I desire, but I do say that we were entitled to expect that this Bill would have been introduced earlier, and that more time, before the last week of the Session, would have been allowed for its consideration. I do say that it is not only essential, but that there is an obligation on the Government to reintroduce the Bill early next Session.

    I hope the Chancellor of the Exchequer will not pay too much attention to the small, aggressive, and very articulate group of the party who sit below the Gangway. If the Bill had been brought in earlier in the Session, I am sure that a very large number of Liberal Members would have been very glad if Clause 11 had been dropped. I will not use the word blackmail, but I do say it is a grossly selfish thing for a small body of. Members to try to prevent the alleviation of an injustice from which thousands of people are suffering in order that they may get in a small minor principle by a side wind on Clause 11. I have been in this House a good many years, and I have never myself seen anything so grossly selfish as the way in which a small party are behaving in this matter. They think only of themselves, and they think at the same time that they may get some advantage by the inconvenience which so many people are suffering from. I hope the Chancellor of the Exchequer will press forward this Bill, and drop Clause 11.

    May I suggest to my hon. Friend (Sir F. Cawley) that one way of preventing people from coming to an arrangement of any sort is to have speeches like that which he has delivered. Therefore, I really ask my hon. Friends to assent to the Motion to report. Progress and see what can be done within the next twenty-four hours. I make the appeal, whatever may be their opinions in the matter, that they should endeavour to restrain themselves for twenty-four hours so that something might be attempted in the meantime. It will be utterly impossible to come to an arrangement if mutual recriminations are to take place during this discussion. I have only to say a word in reply to the hon. and gallant Member opposite. I think when his attention was called to the facts he might have withdrawn the statement he made that I was deliberately unfair in what I said.

    With regard to what was said by the right hon. Gentleman the Member for East Worcestershire (Mr. Austen Chamberlain), I have to say that he knows perfectly well what the conditions are. He raises an issue which, is a very large order. It is no fault of ours that two or three Bills had to be reintroduced this year. It was not the House of Commons that threw them out, and we were obliged to occupy a considerable amount of time.

    The Chancellor of Exchequer quite rightly began his speech by deprecating the time being occupied in mutual recriminations. It is the custom of the Chair always to allow latitude on a Motion to report Progress, because it will facilitate business later on. But this is not an occasion for recriminations or anything of that sort.

    I am very much obliged to you for pulling me up, for I do not think it would conduce to the harmonious conclusion of the Debate to pursue that line. May I appeal now to hon. Members who have an interest in Clause 11, or any other part of the Bill, to assent to report Progress and see what can be done later on.

    I wish to say that we on this side regret the necessity of proposing that this Bill should be postponed until to-morrow. The right hon. Gentleman, on the Second Reading Debate, placed upon myself the responsibility of doing something to remedy the injustice which was done last year. I have come here at great inconvenience to-day to deal with the matter, and it might not be possible to come later on.

    It is not desirable to continue this discussion. It is out of order on a Motion to report Progress to go into matters that have been referred to. It is merely a business discussion of what the proposals of the Government are.

    I would appeal to the hon. Member for Edinburgh (Mr. Price) and other hon. Members in that portion of the House to have regard to the nature of the Bill which is in jeopardy at this moment. I desire to repudiate the suggestion that the Bill is offered in any way as a sop to His Majesty's Opposition. There were quite as many representations made to my right hon. Friend front this side of the House as from the other side. It is a great pity that the small and dwindling group—

    I cannot allow this sort of Debate to continue on a Motion for Adjournment.

    What is in jeopardy is not a concession to the Opposition, but a concession to justice, and not only one concession to justice, but several, and concessions which affect not only hundreds or thousands, but hundreds of thousands.

    That is just the point. It involves, as the hon. Member will now see, a discussion not only of further Clauses of the Bill, but also of the Clauses which have been dealt with That I cannot permit. I think that hon. Members ought to consent to allow the Question to be put now.

    Question, "That the Question be now put," put, and agreed to.

    Original Question put accordingly, and agreed to.

    Committee report Progress; to sit again to-morrow (Tuesday.)

    Finance Bill

    Considered in Committee.

    [Mr. WHITLEY in the Chair.]

    Clause 1—(Duty On Tea)

    The duty of Customs payable on tea until the first day of July, nineteen hundred and thirteen, under the Finance Act, 1912, shall continue to be charged, levied, and paid until the first day of July, nineteen hundred and fourteen, on the importation thereof into Great Britain or Ireland (that is to say):—

    Tea, the poundfivepence.

    I beg to move, to leave out the words ["Tea, the pound—fivepence,"], and to insert instead thereof the words:—

    "Tea (if grown within the British Empire), the poundthreepence.
    Tea (if grown in any foreign country), the poundfivepence."

    The object of this Amendment is to take 2d. off the duty on tea that is grown within the British Empire, leaving the existing duty on the tea grown outside. I trust that I shall secure for it the support not only of those Members who believe in Imperial preference, but also of those who desire to mitigate the existing food taxes in this country. My proposal does not represent the utmost limit to which I should like to go in this direction. I would prefer to take more than 2d. off the tea grown in the British Empire, but I thought it only reasonable to propose an alteration of the Budget that would not involve a greater loss to the revenue than the Chancellor of the Exchequer could replace in the Budget before the House. In matters of this kind, caution is, no doubt, the safest policy. The question of where the revenue, which disappears owing to this remission of taxation, is to be replaced is not the question at issue at all. It is estimated that this Amendment will cost the revenue about £2,000,000 a year. Of course, if the Unionist party were in power that deficiency would be made good by Tariff Reform.

    No; by a tax on foreign manufactured goods. If the Members of the Labour party came into office they doubtless are of opinion that they could raise the money by some Socialistic proposal; but the question of where the revenue is to come from is not raised by this Amendment. The only question before the House is whether the House does desire the high Tea Duty to continue. Therefore I hope that I shall be fortunate enough to secure the support of very many hon. Members opposite. The Tea Duty, unlike a protective duty falls wholly upon the consumer. The imposition of 5d. on the pound does not help a single industry or a single individual in the whole of this country. It does nothing to stimulate production or to benefit trade. It is a pure unalloyed and unrelieved tax on the food of the people of this country. It is absurd to say that the Tea Tax is not a Food Tax. Unless you take the view that the food of the people should be confined to bread and water, tea is as much a food as any other commodity. It is an article of universal consumption. There is hardly a humble home in the country which does not have a tea bill that bears a considerable relation to its total budget, and tea is one of the most highly priced petty luxuries that the poor people of this country have. The tea consumed in this country comes mainly from two sources, India and Ceylon in the first place, and also from China. The Indian tea, generally speaking, is cheaper than the China tea. The Indian tea is the tea that is consumed by the poor of this country. The China tea is the luxury of the rich. For that reason a vastly greater amount of Indian tea than of China tea is imported into the country. Last year the net import of tea from India and Ceylon was over 265,000.000 lbs., and from China the import was over 10,000.000 lbs. Therefore, the Amendment would propose to reduce the taxation on more than nine-tenths of the tea consumed in this country. That can be justified both on the ground of Imperial Preference and also because the Indian and Ceylon tea is the tea that is consumed by the poor of this country.

    The fact that I do not propose to remit taxation on China tea is no argument against remitting taxation on Indian and Ceylon tea, because the price of China tea cannot have any effect on the price of Indian tea. The Indian tea merchants who supply the poor classes in the community are not in direct competition with the China tea merchants. Therefore, if the price of Indian tea is reduced and the price of China tea is left as it is, it will be as if there were two different commodities altogether; and the fact that China tea is taxed to the extent of 2d. per pound more than Indian tea would not tend to raise the price of Indian tea in the slightest degree. Therefore, I submit that the effect of this Amendment would be to reduce the price of Indian tea by 2d. per pound. By the full 2d. it would be a direct gain to the working classes of this country; it would be a direct remission of taxation that falls on their shoulders at the present moment, and, as such, I hope that it will have the support of hon. Members opposite, or at least of the Labour party opposite. I do not think they should reject this Amendment, seeing that it proposes to continue a tax on the luxuries of the rich. This proposal is a step towards the free breakfast table of which we have heard speak so eloquently the Members of the Labour party opposite. Therefore, I cannot. doubt they will support us unanimously in the Lobby on this Amendment. I say that because the hon. Members of the Labour party have on more than one occasion, both in this Hoarse and in the country, expressed their abhorrence of the present food taxes and duties. The hon. Member for North-East Manchester (Mr. Clynes), in his election address at the General Election of 1906, said:—
    "I am against existing taxes on the common necessaries of life."
    The hon. Member for Barrow (Mr. Charles Duncan) in his address said:—
    "Any taxation of food will have in myself an inveterate enemy, whilst every effort to bring about a free breakfast table would command my earnest and diligent support."
    The hon. Member for Merthyr Tydvil (Mr. Keir Hardie) in his address said:—
    "I would abolish the Customs House altogether, and do away with all forms of indirect taxation, save the Excise Ditties upon spirits: repeal the Coal Tax, denounce the Sugar Convention, and make good the loss to the revenue by a special graduated tax on unearned incomes."
    The hon. Member for Newcastle (Mr. Hudson) said:—
    "As a means towards the solution of the social problem, I will press at the first opportunity for the removal of all taxes front the breakfast table."
    The hon. Member for Nuneaton (Mr. William Johnson) in his address said:—
    "I am in favour of a breakfast table free of duties to be provided by removing existing taxation on tea sugar and other commodities."
    The hon. Member for Halifax (Mr. James Parker) in his address to the electors said:—
    "I shall heartily advocate and do my utmost to carry into effect the abolition of indirect taxation."
    The hon. Member for Hallamshire (Mr. John Wadsworth) said:—
    "I would, if possible, abolish entirely taxes on tea coffee, and other foods of the people."
    The hon. Member for Dundee (Mr. Wilkie) said:—
    "I would support and press for tie abolition of all taxation on the food of the people."
    The hon. Member for Westhoughton (Mr. W. Tyson Wilson) said:—
    "The poorer classes are too heavily taxed. The duties on tea, sugar, and other necessaries of life should be removed."
    Therefore, I hope that those hon. Members, having had the opportunity of seeing this Amendment on the Order Paper for about five weeks, will be sufficiently true to their cause to go with us into the Division Lobby when the time comes There are one or two other remarks of hon. Members of the Labour party to which I wish to refer. A speech was made in this House on 26th July, 1912, by the hon. Member for the Blackfriars Division of Glasgow (Mr. Barnes), in which he said:—
    "The Liberal party have always been saying they are in favour of the abolition of indirect taxation and in favour of the abolition of taxation upon the breakfast-table commodities. I am also in favour of the abolition of these taxes."
    I hope the hon. Member for the Black-friars Division will be more true to his opinion than the Labour party have been. This year in this House, on May 7th, the hon. Member for the Blackfriars Division said:—
    "I look back on the last few years during which we have been promised the abolition of these indirect taxes, and I think the time has come to put some of these professions into practice. This—the Tea Duty—is one of the most iniquitous and unjust forms of indirect taxation, because this particular tax bears particularly hard on the poorest of the poor."
    I sincerely trust the hon. Member will be of the same opinion on the question this afternoon, and, now that the opportunity is afforded, will put some of these professions into practice. The hon. Member for North-East Manchester (Mr. Clynes), on 11th June of this year, said:—
    "This period of exceptional pressure and increased cost of living, resting so heavily upon the shoulders of the poor, commends itself to us as an exceptional reason for now proposing this frontal claim for the abolition of all these duties resting upon food."
    The hon. Member for Barnard Castle (Mr. A. Henderson), on the same day of this year, said:—
    "Taxes on food, especially on tea and sugar, are indefeasible."
    He made that statement in speaking on the Amendment moved by the hon. Member for Blackburn (Mr. Snowden). The hon. Member for Blackburn regaled the House with some of the past declarations of Cabinet Ministers on the question of the Sugar Duty and other food taxes. He said that he was giving them the opportunity of redeeming some of the pledges that they had made at election time. Unfortunately, however, the hon. Member for Blackburn in his Amendment did not give the House an opportunity of voting on a clear issue. He proposed to remit the food taxes, and, for revenue, referred to various other forms of taxation. Therefore, there were two issues at stake before the House. As I have already said, there is only one issue before the House in this Amendment—that is to say, whether the present Tea Duty ought or ought not to be reduced, and, in the words of the hon. Member for Blackburn, it gives. Members of the Labour party some opportunity of redeeming their election pledges on this question. I would like to refer to one statement which was made on the occasion of the Second Reading by the hon. Member for Barnard Castle, in which he asserted that the Conservative party when in power had raised the Tea Duty and other food taxes on the people of this country.

    That statement, of course, if taken by itself, is substantially true, but he omitted to state that it was during the time of the South African War, and that the Unionist party at the same time enormously raised the Income Tax and other forms of direct taxation in order to provide the necessary money which had to be found for the war. Therefore it is not fair and it is not accurate to quote war taxes as the policy of any party in time of peace. The Unionist party have proposed this Amendment on several previous occasions, and their leaders have stated that the time has come when the present Tea Duty should be revised. It is a food tax which presses exceedingly heavily upon the poorest class of the community. Whatever may be the opinion of hon. Members as to what proportion of taxation the various classes of the community should bear, and whether they agree with the principles laid down by the Prime Minister on the Second Reading of this Bill or whether they do not, I think they must feel in their own minds that the present Tea Tax as it stands is indefensible. It is far too high a duty to place on this article of common consumption among the poor, and the Amendment I propose would not only have the effect of giving a substantial preference to our fellow subjects in India and in Ceylon, but it would also be a step towards a free breakfast table which hon. Members opposite heartily support.

    The Noble Lord made a speech which was for the most part irrelevant to the subject of the Amendment, and instead of speaking only on the one issue as to the Tea Duty, he referred to sugar, coal, and other taxes. The Amendment is for a preferential tariff, but the speech of the Noble Lord was addressed to very different issues. The one question now raised, and it is a very important and very interesting one, is a question to which the Noble Lord hardly addressed himself at all, namely, the very important question of the preferential treatment of the Tea Duty against China. I suppose I must address myself to the Amendment, and not to the speech of the. Noble Lord. What does the Noble Lord propose to do by this Amendment? He proposes that about 36,000,000 lbs. of tea which comes from China and elsewhere should be charged 2d. more than the tea which comes from within the British Empire. We consumed in 1912 about 260,000,000 lbs. of tea grown within the British Empire and about 36,000,000 lbs. grown in China and other countries. The Noble Lord apparently assumes that the working man does not consume any China tea. There he is perfectly wrong. China tea, I suppose, is the most delicately flavoured tea on the whole. Those who believe in Indian tea have not got a good word to say of China tea, and those who believe in China tea rather despise Indian tea. At any rate some of the most delicately flavoured teas come from China. To assume that the working men drink cheap tea is quite erroneous. Very often the workman who pays a very good price for his tea likes to buy China tea, because he thinks it is better, and some of the blends which contain China tea are very popular in some parts of the country. In discriminating between the different kinds of tea in order to benefit the working classes I think the Noble Lord is under a complete misapprehension as to what the facts of the case are. If it is true that some of the best teas come from China, I should have thought that would be an argument in favour of reduction of the duty on those teas, instead of discriminating against them.

    China is a very good customer of ours, one of our very best customers, and that is especially the case with regard to Lancashire. What does the Noble Lord propose to do? He proposes that one of the best customers of the county which he represents should have a preferential tariff raised against it. I should like to know what Lancashire would think about that, and I am not at all sure that most of the goods which go to China from this country are not Lancashire goods. Let us just consider what happens at the port of Hong Kong. The total imports from China to this country amount to £5,600,000, while the total exports to China, from this country come to over £15,000,000. Thus you have in China a country that buys £10,000,000 worth more from us than we buy from them. There is no doubt China is on the eve of opening up to an extent which will probably amaze the civilised world in the course of the next few years. When there comes to be a scramble for trade, as there will be, and as there is beginning to be now, what would happen if we passed this? We should be handicapped by having discriminated against China tea, China being a country we had discriminated against. Russia, Germany, and the United States of America at any rate trade with China exactly as with any other country, while we should be discriminating against a country that at the present moment is one of our best cus- tomers. On the whole, I think she buys more from us than from any other country in the world, and the Noble Lord, who represents a Lancashire constituency, is trying to encourage trade between his constituents and China by saying, "We are going to penalise you to the extent of 2d. in the pound on a commodity you sell. "I do not think that is quite the proposal that will commend itself there. The Noble Lord is not at all concerned about the workingman's tea, China or otherwise; but what he is concerned about is to get a rise out of the Labour party, and the whole of his speech was directed to that. At the same time, when he goes down to his constituency he can explain that his special method of scoring off the Labour Members is by picking a quarrel with their best customers.

    The Chancellor of the Exchequer has divided his reply into three parts, one part I need hardly refer to, and the second was as to the effect of this proposal on the domestic economy of our own people, and the other its effect on our foreign relations. I think that the Chancellor of the Exchequer would have done more justice to my Noble Friend's argument from every point of view, and would perhaps have made it more clear to the Committee as to the subject on which he was talking, if instead of describing this Amendment as an Amendment to specially tax China tea, he had more correctly described it as a Motion to relieve British teas, and there is all the difference in the world between the two. The right hon. Gentleman says a great deal of China tea is drunk by the British working classes, but that is nothing like the amount they take of Indian tea. A larger proportion of China tea is a luxury, an infinitely larger proportion than of the Indian tea. Where the China tea is cheap it comes into competition with Indian tea on account of the cheapness, but the lessening of the price of the Indian tea cannot hurt the working man. It might enable him to drink better Indian tea than he can now afford instead of the worst China tea, but very likely this would force China tea to drop in proportion to the lower-priced Indian, and whichever way it is, if these results are attained, either alone or in combination, it must be a benefit to the working classes. The hon. Baronet the Member for Salford (Sir W. Byles)—

    I was not laughing at anything the right hon. Gentleman said, but at some observations from the other side by some hon. Gentleman behind me. I never laugh at the right hon. Gentleman.

    I am greatly relieved. I hope I endeavour to address suitable arguments to the House, and the hon. Member, I am sure, is always ready to appreciate arguments of that kind. I look to the other observation of the Chancellor of the Exchequer. He says this proposal is a proposal made by a Lancashire Member to penalise Lancashire's best customer, China. He says also there is no country in the world which is likely in the next few years to have so large a development as China. Did he think for a moment of India in either of those respects? Does he ever think of the British Empire in connection with fiscal questions? This is not a proposal to penalise China or to tax it. Chinese tea remains what it is, but it is a proposal to give a preference to India. Does the right hon. Gentleman mean to lay down and invite foreign Governments to act on the principle, that if we choose to treat the Empire as one they have a grievance? That is the argument of the right hon. Gentleman. It would be just as reasonable to say if we choose to treat Lancashire and Yorkshire as one for the purpose of Customs, or England and Ireland which we have done hitherto, though apparently we are not to do it in the future, that China has the right to protest. That is a doctrine which strikes at any possible view of Imperial unity, Imperial combination, and Imperial defence, and, whatever the Chancellor of the Exchequer does in his efforts to defend his present taxation and to relieve himself and his Friends from a disagreeable position, at least he should not put into the hands of foreign nations art argument so dangerous to the continued unity or the common action of the British Empire as that which he has used.

    I venture to say again that he would come nearer to the truth if he would remember that this is not a proposal to tax China, but a proposal to extend a preference to British tea-growing countries, and amongst those tea-growing countries India is foremost. Is India less important to us as a market than China, or is India less capable of development than China? Indian potentialities of development are only limited by her power to raise capital to secure mechanical means for amt development, and she has made most extraordinary advances in her trade in recent years, and she may continue to make those advances. That is a market which it is just as well to cultivate as it is to cultivate the Chinese market, and it is a market better worth our while to cultivate, because it is a British market and part of the British Empire. Does the right hon. Gentleman think that he is for ever going to be able to maintain the present fiscal system of India? Does he think that he can for ever insist that because we choose to adopt free imports here, that therefore the Indian Government and the Indian people are not to be allowed any protection against foreign competition for any of their goods. If the right hon. Gentleman has read—I do not know whether he has or not—the very important discussion that took place in the Viceroy's Legislative Council on the Motion of an Indian member of that Council a few months ago he would know, or he would at least see signs to doubt, he would know that the present system is unpopular with the people of India, and he would see good reason to doubt whether that system can be maintained. I do not believe it can be maintained, and I believe that the choice before the constituents of my Noble Friend in Lancashire and the other Lancashire Members is not whether they can maintain the present system or not, but whether they will see India drift into a policy of pure Protection or whether, while there is yet time, they will link her with this country by a policy of Imperial Preference. I have always supported this Amendment, and I shall support it to-day. I support it as one step in the creation of a common and, therefore, a united Empire, as one means by which we can show a greater interest in our own Dominions, and as one measure by which we can assert that which the Chancellor of the Exchequer's argument denies, namely, the unity of the whole Empire.

    5.0 P.M.

    I do not desire to be drawn into a Tariff Reform argument, which was initiated by the right hon. Gentleman the Member for East Worcestershire (Mr. Austen Chamberlain), or, if he will allow me to call him so, by my right hon. Friend the Member for East Worcestershire. I desire to refer to the speech which introduced this Debate. There is an aspect of the question before the Committee which has apparently been entirely overlooked. I understood the Noble Lord to say at the outset that if his Amendment was adopted the cost of it would be about —2,000,000 of money—that is to say my right hon. Friend the Chancellor of the Exchequer, whose business it is to provide for the Appropriation Bill which we are going to pass presently, would be about £2,000,000 or £2,250,000 short, and at this time I do not think we ought to deprive him of that. It might cost the country a "Dreadnought," and that I am sure the Noble Lord (Viscount Wolmer) would be the last to desire. It is not for the first time that this financial question has cropped up, and in reference to it I use an illustration that I used before, for much as I may like the proposal I am not going to support the Noble Lord's Amendment, as I do not want to go into a trap. A mouse is very fond of toasted cheese, but it is a great fool if it goes into the trap to get it. I desire, as do my hon. Friends near me, a free breakfast table. That has been the desire of the Liberal party for a very long time. I am only disappointed that the present Government have not achieved it for us. Again, I should like to get rid of these indirect taxes, and to tax everybody as far as possible directly. There are many objections to indirect taxation, the most serious being that the people pay their taxes without knowing that they are paying them, and, therefore, without closely watching what becomes of the money raised thereby. Hence, Governments from either party are encouraged to squander the money obtained from indirect. taxes upon "Dreadnoughts" and other mischievous objects of expenditure. If the Noble Lord could induce any Chancellor of the Exchequer to put this money on to land values, I would be quite content to support him; but we have seen earlier in the afternoon how extremely reluctant the Noble Lord's party is to entertain the idea not only of Land Taxes, but even of land valuation, which might conceivably at some future time be the basis of Land Taxes. If we are to have taxation on food at all, and I suppose the Noble Lord desires taxes on food, tea is about as good an article as you could put it upon. Again, if the very poor are to pay their share of taxation, and there is no means of getting at them by direct taxation, there is a good deal to be said for tea taxation as a means of getting their share. I should like the poor to pay a great deal less than they do, although I do not think that any voters ought to be entirely relieved from taxation. The Noble Lord said that tea was an article of universal consumption. No doubt it is. Surely that is the very thing that recommends it to the Chancellor of the Exchequer! That is one of the virtues of tea taxation. The Noble Lord said that the Tea Tax was directly paid by the consumer. No doubt it is. That, again, is a recommendation.

    I did not say it was directly paid by the consumer. I said it was wholly paid by him.

    I understood the Noble Lord to say that it was a tax which must fall directly upon the consumer.

    Surely a great point in the taxation, as far as I understand the canons of taxation, is that a tax when levied should actually fall upon the person whom you want to pay, and not be paid by somebody else on his behalf. The Noble Lord said further that the tax does not benefit a single person. No, and ex hypothesi it does not injure a single person. There is no tea grown in this country, therefore the tax cannot put up rents as a tax upon foreign corn would. The fact that it neither benefits nor injures a single person, is another of the arguable virtues of tea taxation. The object of it is not to benefit people but to raise money for the Exchequer. I shall not vote for the Amendment; we blow perfectly well why it is trotted out. Our constituents will know perfectly well that, although we vote against the Noble Lord, we are opposed to indirect taxation and taxes on food.

    I wish to comment on the very unfortunate and inaccurate statement of the Chancellor of the Exchequer on the question of discrimination. The term "discrimination" is not correctly applied to preferential duties in this or any other Empire. No foreign country would dream of penalising the trade of the United States because the United States Government gives a preference to its Colonies. The late Lord Salisbury claimed in more than one dispatch that the system of preference initiated by Canada was not differentiation in the ordinary sense of the term, and on that ground prevented penal action on the part of Germany. Since then the controversy has raged everywhere in the world where preference is given, and that is everywhere where there are Colonies. I think I am right in saying that it is now generally admitted that the establishment of a preferential Duty is not differentiation within the ordinary meaning of the term, and does not disentitle a country to receive the benefits and advantages of most-favoured-nation treatment. The controversy arose in connection with the Canadian tariff and the relations of Canada to the United States, but, as the right hon. Gentleman knows perfectly well, the United States did not put into operation the maximum clause in her tariff, because Canada put on a preferential duty to our advantage, which is, from the right hon. Gentleman's point of view, differentiation. If it were really differentiation, Canada would at once become subject to the penal Clause in the United States Tariff. I suggest that the right hon. Gentleman, in view of the delicate state of international relations on this very question, should withdraw what he has said about the establishment of a preferential system being discrimination against a foreign country. That is a very dangerous statement for a Minister of the Crown to have made. The establishment of preference within an Empire is now universally regarded as a domestic question, and there is no reason why a preference should not be established between this country and India, or between this country and any of its Colonies, without violating any Treaty obligations of any kind whatever. Preference, according to the definition of the Resolution of the Imperial Conference, is simply that where you have duties you should take them off or reduce them in favour of your Colonies. It does not imply any great change of policy, according to the view of the great statesmen of our Dominions and Colonies.

    The Tea Duty occupies a particularly objectionable position. I do not want to develop that argument, because we had a Debate on the question not very long ago when a great deal was said on one side of the other. But as a matter of fact very few countries impose a Tea Duty. They would rather raise their revenue in almost any other way than imposing a Tea Duty which unquestionably must, to a very large extent, come out of the pockets of the working classes. After the enormous ex- penditure which the Government have let us in for, we cannot hope to do away with all these objectionable duties at the present time. But surely the Chancellor of the Exchequer might advance a little in that direction by reducing the Tea Duty! That would certainly be an unmixed advantage to the working classes who now have to pay it. I was surprised at the right hon. Gentleman's statement in regard to our trade interests in China, and his omission to deal with India. Surely it is desirable that, before he makes a speech upon such a subject, the Chancellor of the Exchequer should acquaint himself with the extremely delicate situation in which these subjects are in our great Dominions! If he would read the important statement last March by Sir Fleetwood Wilson, Finance Minister in India, who, I suppose, represents the British Government, he world realise that at the present time in India this fiscal question is one of the most delicate and difficult with which you could possibly have to deal. There is undoubtedly a strong and growing disposition on the part of the natives of India to press for full-blooded Protection, and the councils which the Government have established are a means of giving expression to the aspirations of India in that regard.

    As I read his statement, Sir Fleetwood Wilson's point is that he does not think it probable that the present fiscal system of India can be maintained, but that the pressure of various economic forces in competition in the market of India, the changes in the fiscal situation in the Far East, movements like that of the Japanese tariff, and all those other elements which he details, are bound to force upon India a change of policy, and that change of policy, if it is pushed forward under the guidance and inspiration of the natives, must have an enormously prejudicial effect upon India and the trade of Lancashire. The point of Sir Fleetwood Wilson's statement is that a possible way of warding off this danger is to direct the movement in India into a new channel—a new policy, as he calls it, a policy which differs from the previous policy, and a precedent for which has been set by our own great Dominions—a policy of directing these aspirations in the direction of a preferential tariff, and though he does not pledge the Government or himself, he throws down the subject for discussion and consideration. In view of that, I should have thought the Chancellor of the Exchequer would have dealt with the subject a little more sympathetically than he has done. He might have dealt with it more sympathetically in view of the precedents which he and his Government have set. The Government claim to have been returned to power to maintain Free Trade, but they have, under the pressure of forces which we all recognise, set numerous precedents for carrying a Tariff Reform policy. They have entered into negotiations with foreign countries; they have made trade treaties such as that in connection with the Japanese Tariff; they have restricted the autonomy of this country in fiscal matters; they are affecting the Most-Favoured Nation Clause all over the world; they have themselves been parties to a preferential arrangement between the West Indies and Canada; and on 24th May last, Empire Day, the Foreign Secretary wrote a dispatch in which he refused on what must be regarded as purely Protectionist lines to give an Excise—

    On a point of Order. Is the hon. Member allowed to introduce a full-blooded debate on the question of Tariff Reform on this Amendment? I shall be delighted to follow the hon. Member, but, if he is allowed to proceed, I must certainly claim the same right.

    I am not introducing a general Tariff Reform debate at all, and have not the least intention of doing so. I am simply cataloguing a few of the precedents which I say would cover any action which we desire the Chancellor of the Exchequer to take in regard to the Tea Duty.

    The hon. Member says that he has no intention of proceeding further; otherwise, I am afraid I should have to call him to order.

    That is so. I never had any intention of proceeding further. Obviously it would not be possible to raise a general Tariff Reform discussion in connection with this subject, but I submit I am perfectly entitled to point out to the Government that by their own action they have departed from the line of action and from the principles which stand in the way of the action suggested by the Noble Lord. In conclusion, I beg the right hon. Gentleman to consider more sympathetically the line of action embodied in this Amendment, which, from the point of view of the great statesmen of our Dominions, and from the character and precedents set by the Government, involves no revolutionary departure in policy. It is a domestic question; it reduces the cost of living, and the burden of taxation on the working classes. It does something to relieve the difficulty which Ministers feel in regard to India. It is easy enough to do. The Chancellor of the Exchequer will be able to find the money. There is no difficulty about that. But I do beg of him to give a more sympathetic consideration to this matter. If he cannot do it in this last week of the Session, the Government, when they bring in their new Budget, can develop in a natural, orderly way the precedents that they themselves have set.

    There are just one or two observations I wish to make in reference to the speech to which we have just listened. I venture to suggest that all the cases cited by the hon. Gentleman opposite as illustrations of a Free Trade Government falling away from the principles in which they are supposed to be identified, and which they were elected to support, are away from the point. The cases mentioned in the speech might be taken seriatim, but the order you have given, Mr. Deputy-Chairman, precludes me from going into detail to show that there is not in them the slightest opposition to the principles of Free Trade. I was expecting the hon. Member to go on to the Patents Act. That is the usual style of the Tariff Reform lecturer—to show that by making these restrictions we are doing the Tariff Reform business. The hon. Member did not follow that out, though he might easily have done so, because that is one of the standard notes that are circulated by Tariff Reform lecturers—

    The hon. Member had a very nice sense of order as a listener, which his observations as a speaker do not seem to support.

    I am sorry I was led away from the strict path of order and procedure by the hon. Member opposite. I will not follow the matter any further, for I have said what I wish to say in regard to these points. I am interested in this discussion because of the observations of the Noble Lord who introduced the subject. We are usually criticised when we suggest that if you impose duties either preferential or otherwise, as in the case of this Tea Duty, upon a commodity coming into this country, that it sometimes is possible that the foreigner might pay the duty. But I was particularly interested in the Noble Lord's statement, repeated again and again, when the absurdity of the opposite contention was pointed out, in his declaration, that unquestionably in the case of this Tea Duty that we are discussing now it is the consumer who pays.

    I said particularly that that was because it was not a protective duty, and because tea cannot be produced in this country.

    That is exactly the situation. The worst of it would be that supposing for a moment that tea could be produced in this country that this duty would be much more immoral than it is now; because not only would you be increasing the price and making the consumer pay upon the amount of tea that was brought into the country, but you would be raising the price of the tea grown in this country, and therefore making him pay for a thing he ought not to be called upon to pay. That is really, so far as we are concerned, the whole contention with regard to the subject. I want further to say this, that, for myself, I would have supported him certainly if it were possible under the rules of order, if the Noble Lord had put forward proposals or any scheme by which in a direct way or by a direct system this £2,000,000 could have been made up. For instance, if this had been a declaration that we should reduce the duty on tea coming from India by 2d. in the pound, and we should make that up by a 6d. higher Income Tax on incomes over £5,000 a year—

    I do not think if it were in order that I should find the Noble Lord supporting it, because, as a matter of fact, the Noble Lord knows that would be taking money for running the Government of the country out of pockets that he is particularly anxious to protect. [HON. MEMBERS: "Order."]

    Oh, oh! I entirely repudiate the hon. Member's suggestion. It is most offensive.

    It may be offensive to the Noble Lord, but I am entitled to make my own deductions and to form my own opinion on his proposition. I am the more entitled to do this because the Noble Lord addresed his remarks more particularly and pointedly to the Labour Members. He suggested that he thought, no matter what the object might be or the result might be, that the Labour Members were bound to support this Motion under any circumstances. Naturally, we are obliged, when a proposition comes from the Noble Lord to take a duty off a certain thing, knowing he is not in favour of dropping the naval programme or any other of the expenses connected with the great spending Departments of the State, like the Army and the Navy, knowing that he has no proposal or no idea of reducing expenditure in those directions, and is making a proposition to take some £2,000,000 off the revenue, we naturally have to ask ourselves by what kind of taxation does the Noble Lord propose to make good this deficiency? We know the sort of taxes that we should like. We should like to take off all the burdens that we possibly could. That is one of the objects, I am sure, that all my Friends have in supporting any of the fiscal proposals of this House—to gradually relieve the burdens of indirect taxation upon the Very poor—

    And so far as possible put it on the shoulders of that very class to which the Noble Lord belongs. Frankly that is our position in regard to this matter. We will support this proposal, certainly, for a reduction of 2d., and for the removal altogether of various taxes, but it will only be when the Chancellor of the Exchequer has made proper provision to saddle the duty upon the right shoulders.

    In reply to the hon. Member who speaks, as he tells us, from the Labour Benches, may I point out that the party opposite is one that has consistently supported the food taxes throughout the present Parliament? I hope that the hon. Member when he goes down to address his constituents will tell them that in spite of all he has said as to his objection to food taxes at election times he has steadily voted for the food taxes during the present Parliament. The Labour party, at all events, will have this consolation, that if they keep these taxes on by voting for them they will be able at election times to continue their promises to take them off.

    Just as I came in I heard the Noble Lord making his speech, and I confess I was surprised to hear him quote the election addresses of the party with which I am associated. Surely he must think that the people of this country are more ignorant than they are if he thinks that they are going to believe that the taking off of part of the duty on tea coming from the Dominions is going to reduce the price of tea! Will he try to persuade the working men in Lancashire that by reducing the tax on tea coming into the country that the price of that commodity will be reduced?

    If the Noble Lord can guarantee that preferential treatment means an all-round reduction to the consumer, I will be prepared to go into the Lobby with him. As it is, the proposal of the Noble Lord will simply increase the profit of the middlemen.

    The hon. Member who has just spoken has contended that a reduction in duty, provided that duty is a preferential duty, has no effect upon price. May I ask, then, why the hon.

    Division No. 268.]

    AYES.

    [5.28 p. m.

    Abraham, William (Dublin, Harbour)Crumley, PatrickHenry, Sir Charles
    Acland, Francis DykeCullinan, JohnHigham, John Sharp
    Adamson, WilliamDavies, David (Montgomery Co.)Hobhouse, Rt. Hon. Charles E. H.
    Alden, PercyDavies, Timothy (Lincs., Louth)Hodge, John
    Allen, Rt. Hon. Charles P. (Stroud)Delany, WilliamHogg, David C.
    Baker, Harold T. (Accrington)Denman, Hon. Richard DouglasHogge, James Myles
    Baker, Joseph Allen (Finsbury, E.)Devlin, JosephHolmes, Daniel Turner
    Balfour, Sir Robert (Lanark)Dillon, JohnHoward, Hon. Geoffrey
    Banbury, Sir Frederick GeorgeDonelan, Captain A.Hudson, Walter
    Beauchamp, Sir EdwardDoris, WilliamHughes, Spencer Leigh
    Beck, Arthur CecilDuffy, William J.Isaacs, Rt. Hon. Sir Rufus
    Benn, W. W. (T. Hamlets, St. George)Duncan, C. (Barrow-in-Furness)John, Edward Thomas
    Bethell, Sir J. H.Esmonde, Dr. John (Tipperary, N.)Jones, Rt. Hon. Sir D. Brynmor (Swansea)
    Boland, John PiusFalconer, JamesJones, J. Towyn (Carmarthen, East)
    Booth, Frederick HandelFerens, Rt. Hon. Thomas RobinsonJones, William (Carnarvonshire)
    Bowerman, Charles W.Ffrench, PeterJowett, Frederick William
    Brady, Patrick JosephFitzgibbon, JohnJoyce, Michael
    Bryce, J. AnnanGeorge. Rt. Hon. D. LloydKeating, Matthew
    Burke, E. Haviland-Gladstone, W. G. C.Kellaway, Frederick George
    Burns, Rt. Hon. JohnGoldstone, FrankKelly, Edward
    Buxton, Noel (Norfolk, North)Greig, Colonel James WilliamKennedy, Vincent Paul
    Buxton, Rt. Hon. Sydney C. (Poplar)Griffith, Ellis JonesKilbride, Denis
    Byles, Sir William PollardGuest, Major Hon. C. H. C. (Pembroke)king, Joseph
    Carr-Gomm, H. W.Guest, Hon. Frederick E. (Dorset, E.)Lambert, Rt. Hon. G. (Devon, S. Molton)
    Cawley, Sir Frederick (Prestwich)Gwynn, Stephen Lucius (Galway)Lambert, Richard (Wilts, Cricklade)
    Chancellor, Henry GeorgeHackett, JohnLardner, James C. R.
    Chapple, Dr. William AllenHarcourt, Rt. Hon. Lewis (Rossendale)Law, Hugh A. (Donegal, West)
    Churchill, Rt. Hon. Winston S.Harcourt, Robert V. (Montrose)Lawson, Sir W. (Cumb'rid, Cockerm'th)
    Clancy, John JosephHarmsworth, Cecil (Luton, Beds)Leach, Charles
    Clough, WilliamHarvey, T. E. (Leeds, West)Lewis, Rt. Hon. John Herbert
    Collins, Godfrey P. (Greenock)Hayden, John PatrickLundon, Thomas
    Condon, Thomas JosephHayward, EvanLyell, Charles Henry
    Cotton, William FrancisHazleton, RichardLynch, Arthur Alfred
    Craig, Herbert J. (Tynemouth)Henderson, John M. (Aberdeen, W.)McGhee, Richard

    Member and his Friends objected to the proposed preferential duty on corn and wheat from the Colonies if it was not going to have an effect? The hon. Member says that a preferential duty on tea will not reduce the price. Neither would it, then, on other things. I fail to see the argument of the hon. Member. When it suits him to say that a preferential duty will increase the price, then he says it, when it suits him, in order to keep the Government in office, to say that it will have no effect whatever upon prices, he says that. I am going to vote with the Government. I have always voted in favour of a duty on tea. I have never gone down to my Constituency and in order to catch votes said that I would vote for this reduction; then, after I got into the House, refused to vote for it. I have always said in my Constituency that taxes have to be raised, and that this was one of the taxes which brought in money, and that I should vote for it. As I supported my party when they were in power I am now going to support the Government, who are only doing what my own party did when they were in power. That is consistency which hon. Gentlemen below the Gangway may note.

    Question put, "That the words proposed to be left out stand part of the Clause."

    The Committee divided: Ayes, 192; Noes, 70.

    Macnamara, Rt. Hon. Dr. T. J.O'Dowd, JohnSamuel, Rt. Hon. H. L. (Cleveland)
    MacNeill. J. G. Swift (Donegal, South)O'Kelly, Edward P. (Wicklow, W.)Scanian, Thomas
    Macpherson, James IanO'Kelly, James (Roscommon, N.)Scott, A. MacCallum (Glas., Bridgeton)
    MacVeagh, JeremiahO'Malley, WilliamSheehy, David
    McKenna, Rt. Hon. ReginaldO'Neill, Dr. Charles (Armagh, S.)Shortt, Edward
    Marks, Sir George CroydonO'Shaughnessy, P. J.Simon, Rt. Hon. Sir John Allsebrook
    Masterman, Rt. Hon. C. F. G.O'Shee, James JohnSmith, Albert (Lancs., Clitheroe)
    Meagher, MichaelO'Sullivan, TimothyStrauss, Edward A. (Southwark, West)
    Meehan, Francis E. (Leitrim, N.)Outhwaite, R. L.Thomas J. H.
    Meehan, Patrick J. (Queen's Co., Leix)Palmer, Godfrey MarkThorne, G. R. (Wolverhampton)
    Molloy, MichaelParker, James (Halifax)Toulmin, Sir George
    Money, L. G. ChiozzaPearce, Robert (Staffs, Leek)Trevelyan, Charles Philips
    Montagu, Hon. E. S.Pearce, William (Limehouse)Walters, Sir John Tudor
    Mooney, John J.Phillips, John (Longford, S.)Ward, John (Stoke-upon-Trent)
    Morgan, George HayPonsonby, Arthur A. W. H.Wardle, George J.
    Morrell, PhilipPrice, C. E. (Edinburgh, Central)Waring, Walter
    Morison, HectorPringle, William M. R.Warner, Sir Thomas Courtenay
    Morton, Alpheus CleophasRaffan, Peter WilsonWebb, H.
    Muldoon, JohnRaphael, Sir Herbert H.Wedgwood, Josiah C.
    Munro, R.Rea, Walter Russell (Scarborough)White. J. Dundas (Glasgow, Tradeston)
    Munro-Ferguson, Rt. Hon. R. C.Reddy, MichaelWhite, Sir Luke (Yorks, E.R.)
    Murray, Captain Hon. Arthur C.Redmond, John E. (Waterford)White, Patrick (Meath, North)
    Neilson, FrancisRedmond, William (Clare, E.)Whitehouse. John Howard
    Nolan, JosephRedmond, William Archer (Tyrone, E.)Wilson, Hon. G. G. (Hull, W.)
    Norton, Captain Cecil W.Richardson, Albion (Peckham)Wilson, W. T. (Westhoughton)
    Nugent, Sir Walter RichardRichardson, Thomas (Whitehaven)Wing, Thomas Edward
    O'Brien, Patrick (Kilkenny)Roberts, Charles H. (Lincoln)Wood, Rt Hon. T. McKinnon (Glasgow)
    O'Connor, John (Kildare, N.)Robertson, Sir G. Scott (Bradford)Yoxall, Sir James Henry
    O'Connor, T. P. (Liverpool)Robertson, John M. (Tyneside)
    O'Doherty, PhilipRobinson, SidneyTELLERS FOR THE AYES.—Mr. Illingworth and Mr. Gulland.
    O'Donnell, ThomasRoche, Augustine (Louth)

    NOES.

    Anson, Rt. Hon. Sir William R.Fitzroy, Hon. Edward A.Mount, William Arthur
    Baird, John LawrenceFletcher, John Samuel (Hampstead)Newdegate, F. A.
    Barlow, Montague (Salford, South)Forster, Henry WilliamNicholson, William G. (Petersfield)
    Barnston, HarryGastrell, Major W. H.Pease, Herbert Pike (Darlington)
    Bathurst, Charles (Wilts, Wilton)Gibbs, G. A.Pollock, Ernest Murray
    Benn, Arthur Shirley (Plymouth)Gilmour, Captain JohnPretyman, Ernest George
    Bird, AlfredGoulding, Edward AlfredRawlinson John Frederick Peel
    Blair, ReginaldGuinness, Hon. Rupert (Essex, S.E.)Ronaidshay, Earl of
    Boyle, William (Norfolk, Mid)Hamilton, C. G. C. (Ches., Altrincham)Royds, Edmund
    Boyton, J.Harris, Henry PercySamuel, Samuel (Wandsworth)
    Bridgeman, William CliveHenderson, Major H. (Berks, Abingdon)Sanders, Robert Arthur
    Bull, Sir William JamesHewins, William Albert SamuelStanley, Hon. G. F. (Preston)
    Campion, W. R.Hibbert, Sir Henry F.Stewart, Gershom
    Cassel, FelixHills, John WallerSwift, Rigby
    Cecil, Lord R. (Herts, Hitchin)Hoare, S. J. G.Sykes, Sir Mark (Hull, Central)
    Chamberlain, Rt. Hon. J. A. (Worc'r.)Hope, James Fitzalan (Sheffield)Talbot, Lord Edmund
    Clive, Captain Percy ArcherHouston, Robert PatersonTerrell, G. (Wilts, N.W.)
    Courthope, George LoydIngieby, HolcombeThompson, Robert (Belfast, North)
    Craik, Sir HenryKerry, Earl ofWhite, Major G. D. (Lancs., Southport)
    Dalziel, Davison (Brixton)Kinloch-Cooke, Sir ClementWorthington-Evans, L.
    Denison-Pender, J. C.Larmor, Sir J.Yate, Colonel C. E.
    Dickson, Rt. Hon. C. ScottLaw, Rt. Hon. A. Bonar (Bootle)Younger, Sir George
    Duke, Henry EdwardLloyd, George Butler (Shrewsbury)
    Eyres-Monsell, Bolton M.Locker-Lampson, G. (Salisbury)TELLERS FOR THE NOES.—Lord Wolmer and Captain Tryon.
    Fell, ArthurMagnus, Sir Philip
    Fisher, Rt. Hon. W. HayesMorrison-Bell, Capt. E. F. (Ashburton)

    Question, "That the Clause stand part of the Bill," put, and agreed to.

    Clause 2—(Income Tax For 1913–14)

    (1) Income Tax for the year beginning on the sixth day of April, nineteen hundred and thirteen, shall be charged at the rate of one shilling and twopence, and the same Super-tax shall be charged, levied, and paid for that year as was charged for the year beginning on the sixth day of April, nineteen hundred and twelve.

    (2) All such enactments relating to Income Tax (including Super-tax) as were in force with respect to duties of Income Tax granted for the year beginning on the sixth day of April, nineteen hundred and twelve, shall have full force and effect with respect to any duties of Income Tax hereby granted.

    (3) The annual value of any property which has been adopted for the purpose either of Income Tax under Schedules A and B in the Income Tax Act, 1853, or of Inhabited House Duty, during the year ending on the fifth day of April, nineteen hundred and thirteen, shall be taken as the annual value of such property for the same purpose during the next subsequent year; provided that this Sub-section—

  • (a) so far as respects the duty on inhabited houses in Scotland, shall be construed with the substitution of the twenty-fourth day of May for the fifth day of April; and
  • (b) shall not apply to the Metropolis as defined by the Valuation (Metropolis) Act, 1869.
  • I beg to move, at the end of Sub-section (2), to add the words,

    "Provided always that no husband shall be committed to prison, nor shall any distress be levied upon his goods, nor shall any other proceedings for any penalty, fine, or otherwise, howsoever be brought against him for failure to pay the Income Tax to which he has been assessed in respect of the joint incomes of his wife and himself if he has paid or is ready and willing to pay such part (if any) of the whole tax as is fairly attributable to his income."

    The object of the Amendment and the one which immediately follows is to remedy one of the most glaring anomalies in our Income Tax law. That is saying a good deal, because anyone who has even a superficial knowledge of the subject knows how serious these anomalies are. In drafting these Amendments I have endeavoured to couch them in the plainest possible language without any complication, because I think the mere statement of the Amendment myself ought to be sufficient to carry conviction to the mind of any reasonable man. What the Amendment says in plain words is that the husband ought not to be sent to prison or subjected to penalties because he does not pay Income Tax on his wife's income. On the other hand, the wife ought to be entitled to the abatements, reliefs, and exemptions allowed in respect of her own income. These anomalies are clue to the fact. that the Income Tax law is very much older than the Married Woman's Property Acts, and also that when the Income Tax was first introduced by Pitt and was reintroduced in the time of Sir Robert Peel, that the wife's income was the husband's income in the sense that the husband had the control and management of it and therefore it was not so unreasonable then to say that the wife's income should be deemed to be the husband's income. Since then we have had the Married Woman's Property Acts, and what has happened is that the Income Tax Acts have never been brought up to date, and that there is injustice to the husband and the wife and penalisation of marriage, and in many cases loss of revenue to the State. As to the injustice to the husband, what could be more unfair or unreasonable than to say to a man that he must make a return of his wife's income when you do not give him any opportunity of ascertaining that income, and when it remains at her will to disclose it or not? What could be more unreasonable than to say that a man must pay income tax upon his wife's income when he has no control over that income, and when it rests with her as to whether she discloses it or not? This matter was brought to public attention and particularly to my own attention in the case of Mr. Wilks which occurred last year.

    Mr. Wilks was a teacher in a London County Council School earning £150 a year. His wife was earning an income by the exercise of the profession of a doctor. What the amount of her income really was I am unable to say. The Income Tax Commissioners assessed it at £700 a year. Mr. Wilkes having been unable to state what her income was, they proceeded to assess the joint income as best they could, and as a result Mr. Wilks, who had only £150 a year as a teacher, was held liable for the payment of £30 or £40 of Income Tax. I think the precise figure he was called on to pay was In the first place, when he refused to pay, the Income Tax Commissioners proceeded quite unlawfully, and without any legal justification, to levy the tax upon the wife's goods. When objection was made to this, they saw they had no right to do it, and they then resorted to the Courts. They put the husband in prison, not for any definite period, but at their own will and pleasure, until he should pay this tax. And it is rather a significant fact that the date when he was first sent to Brixton gaol was the 18th of September, 1912, and he was kept there until a few days before the reassembling of Parliament. The House reassembled on the 7th October, and a few days before that Mr. Wilks was released from prison. I suppose it was thought too much that he should be still kept in prison after the matter became a subject of criticism in this House. I put down a question on 9th October and elicited from the Chancellor of the Exchequer the answer that he proposed to consider an amendment of the law, but that, until the law was amended, he said, quite rightly, he could not give way in any similar case and could not give instructions that a, similar situation should not be repeated if the circumstances arose. I confess, quite frankly, that from the moment the case occurred I made up my mind not to let the question rest until we had forced the Government to alter such an absurd position.

    I find that in another place that the Lord Chancellor stated that the condition of the law as it exists now could not be defended and from the Amendments on the Paper it seems that the Government recognise the reasonableness of that view. From the point of view of the individuals concerned, it was grossly unjust. In the first place, the wife does not get the benefit of exemptions or payments in respect of her income. Generally the wife's income is an income arising from dividends or investments. It is not very frequently the result of her own earnings, though, of course, in many cases it is, but in the majority of cases it is an income arising from investments. In that case the tax is deducted at the source, and if she is not subject to Income Tax, because her income is below the Income Tax limit, she does not get the benefit of the exemption, but the husband does. Let me give the Committee an illustration which will make the case clear. Assuming that the husband and wife each have £150 a year, the wife's income being derived from investments, and that of the husband from salary as a school teacher, the wife's income is taxed at the source at 1s. 2d. which is the unearned rate, so that there is deducted 8s. 10d. from her £150. The Income Tax payable by husband and wife jointly is on £300 of which £150 is entitled to abatement, so that the duty is only paid on £140. But duty has been deducted from the wife's income of £150. Therefore, the husband is entitled to claim a rebate on £10 and he gets a rebate of 11s. 8d., and actually makes a profit out of it. Not only does he pay no Income Tax, but he makes a profit of 11s. 8d. The wife loses £8 15s. and the husband makes a profit of 11s. 8d. I could multiply indefinitely instances of the absurd way in which this works out. Moreover, married women treat the law as humiliating to themselves, and I think they do so with justice, because they are not treated as existent at all for the purposes of the Income Tax law. It is true their money is taken, but nevertheless the law treats them as non-existent. That was brought out very clearly by a deputation which waited upon the Chancellor of the Exchequer when Miss Lena Ashwell made a speech which had a great effect in inducing the right hon. Gentleman to promise to bring forward a proposal to amend the law. Miss Ashwell carries on her profession as an actress, but she also has the management of a theatre, and at the theatre the Income Tax papers are sent addressed to her husband, with the words "For Wife" in brackets. Miss Ashwell objected to being addressed in that way when she was being called upon to pay the Income Tax. The Chancellor of the Exchequer practically accepted that view, for he said in reply:—
    "I agree that the present form treats married women as if they had no existence at all, and I accept the view that it is a humiliation and yon are entitled, certainly, to protest against it."
    Not only is it unjust on the husband and the wife, but in many cases it causes a loss of revenue. Assume the case that the wife is living in this country and the husband is in the Colonies on business which keeps him there for some time, and that the husband has an income and the wife has an income. The wife cannot be assessed on her income because it is deemed to be her husband's, and her husband is out of the jurisdiction of the tax and the revenue quite improperly loses by it. I think that is one of the reasons which may have actuated the Government in placing this Clause on the Paper which the right hon. Gentleman very courteously consulted me about before he put it down. There is, however, one other aspect which that Clause does not deal with and it is that it penalises marriage. There are many cases where people, if they were unmarried would not be subjected to Income Tax at all, but who are subject to it simply because they are married. There are cases where the Income Tax is four and five times as high as it would be if they were not legally married. That is a very difficult question in itself to deal with, and I admit that my Amendment does not deal with that point. I could not have framed such an Amendment without imposing a fresh charge. I would point out to the right hon. Gentleman that in the Revenue Bill which met with such a sad fate this afternoon rather curious consequences would have followed from this state of the law. According to the law, a married woman never has any income at all, and so a married woman in those cases would not be liable to Increment Duty in any case whatever. But quite apart from that anomaly, I think I have pointed out sufficient to show that really the time has come when we must make an end of the absurd state in which the law stands at the present time, and I welcome the fact that a Clause stands on the Paper in the name of the Chancellor of the Exchequer to deal with the matter. Perhaps the right hon. Gentleman will tell us on this Amendment what attitude the Government propose to take in regard to that matter.

    The hon. and learned Member has stated quite correctly that the law in connection with the assessment of Income Tax on husband and wife is in a somewhat anomalous position. I may point out, however, that that has been the law for a very long period, and it requires a most complicated Clause in order to make any Amendment work fairly between husband and wife. The Amendment which the hon. and learned Member has just proposed is one which the Government could not possibly accept, because it would leave the law in a most ridiculous state. He does not seem to have observed that the result of this Amendment would be that although the husband would be assessed and charged with Income Tax on the income of his wife, no proceedings could be taken against the husband to recover that tax, and there could be no distraint upon his goods and no means of levying the Income Tax and you could not make a legal demand of any sort or kind upon him although he would remain the person liable to pay the Income Tax. At the same time there is no means provided and none in existence at the present time for recovering the Income Tax from the wife by any sort of process, and that is the very difficulty in the Wilks case.

    The reason I did not deal with that point in my Amendment is that it would not have been in order for me to do so, because it would have imposed an additional charge, and that is not within the competence of a private Member, and my proposal would have been out of order.

    I am simply pointing out what the result of this Amendment would be. If the hon. and learned Member says he is content to take the Amendment proposed by the Government as carrying out all that is necessary, then that is a different matter. He is, however, moving this as a substantive Amendment with the object of remedying a state of the law into which he went at some length and pointed out difficulties and anomalies raised by the Wilks case. Unless there is some such case as existed in the Wilks case, you must set up some other means of levying against the wife and enforcing against her the same remedies as against an ordinary individual. Unless you do that the result must necessarily be that the payment of Income Tax by the wife would be purely voluntary, and you could not enforce it. You could not enforce it against the husband or the wife, and you would have to depend for payment entirely on the goodwill of the lady, whether or not she chose to pay without any demand being made upon her for it. I am not prepared to admit that they would pay the Income Tax demanded if it rested solely upon a voluntary basis. Therefore, you must deal with this Amendment as it is proposed. The hon. and learned Gentleman has already pointed out how ridiculous the law is with reference to the Wilks case, and therefore I am bound to point out what the result would be of the adoption of this Amendment. I quite appreciate the difficulty. The effect of this Amendment would be that there would be no means of recovering any Income Tax at all from them, and we should have to depend entirely upon their goodwill for the payment of it. The hon. and learned Gentleman said quite correctly that there has already been some discussion of this subject in connection with the deputation which waited upon the Chancellor of the Exchequer, as a result of which the right hon. Gentleman stated his willingness to consider an amendment of the law, and was favourably impressed by the speech which was made to him by Miss Ashwell on that occasion. No doubt it is desirable that there should be some amendment of the law. We have put down an Amendment on the Paper which I am afraid is rather long, but it deals with a rather complicated subject.

    6.0 P.M.

    Anyone familiar with Income Tax law as it works, particularly with reference to claims for exemptions, abatements, and relief, and so forth, knows that you must deal with all these cases when dealing with husband and wife. I should not be in order if I dealt with the Government Clause at any length now, and all I can do at the present moment is to point out the effect of the Government Amendment if it is carried. Its effect will be that an assessment can be made, and the charge could be made upon the wife in respect of the income which she possesses or earns in the same way as against the husband, and all abatements and all relief would be given proportionately to the husband and to the wife, but under our system we should still continue to treat husband and wife as one. That is to say for the purpose of the aggregation of incomes, in order to determine the abatement or relief which could be given, you must treat the income as one income and not as two separate incomes. Any Chancellor of the Exchequer who comes to consider that point I am quite sure will agree with what I have said, because to treat it otherwise would result in a loss to the Exchequer of £1,250,000. It would be a very serious thing to consider the income of husband and wife as two separate incomes for all purposes. It is quite a different thing to treat the income of husband and wife as one person, one household, one family, for the purpose of contributing upon the total income. You should add the incomes together, and then, for the purposes of abatements, exemptions, and relief, you treat each of them separately afterwards, and give each of them the proportion which would be due according to the income either earned or possessed by the one or the other. You must, for the purpose of arriving at the amount of abatement or exemption, take the total. It is for that object that we are taking the total income of the wife and the husband; otherwise you return the husband at a definite rate, and nobody would know what the total income was, nor was it material that the Commissioners should know. It is now material for these two purposes, for the purposes of exemption, abatement, and release, and for the purposes of the Super-tax; but, except for those two purposes, you never get the total income. In dealing with the husband and wife, you would have a case in which it would become necessary to deal with the total income of the two, so that you might determine what deductions should be made. We have provided for all that in this rather long Clause, and, when I come to deal with it later, if I am allowed to do so, I shall have an opportuntiy of dealing with it a little more fully, but, though I do not profess to have gone into it in great detail, I have, I think, indicated the scheme of relief which the Government propose to give. From that would follow necessarily the obligation upon the wife to pay Income Tax. It would necessarily follow that the process of execution would be issued against her. Her goods would be distrained upon for the payment of Income Tax due from her. That, again, is provided for in the Clause which we have put upon the Paper. I hope that when we get to the discussion of it we shall have an opportunity of going into the matter more fully, and that it will present itself to the Committee as a reasonable way of dealing with the matter. I am bound to state it hypothetically, because there is always the question whether it can in its present condition be proposed in this Bill. My hon. and learned Friend again discussed some views under the Income Tax law, and he said that it would be necessary to have some such Clause as the Government have on the Paper in order to amend the law, because he was of opinion that at present it penalised marriages. I find it a little difficult to follow that argument. I can hardly conceive that the question of Income Tax would arise, or that a lady, when a proposal of marriage is made to her, which she would otherwise be inclined to accept, would say, "Whatever my feelings may be towards you, I cannot accept your proposal, because, if I do, I get into difficulties with regard to the Income Tax law, which I do not like."

    I said that neither the Amendment nor the Government proposal dealt with that particular difficulty. I only pointed it out as one point to be considered.

    I will not pursue the matter further. It will be quite impossible, as I already have explained, for us to accept the Amendment, although I quite agree that it is a subject which it is very useful to discuss, and which we shall have to discuss a little later on. It is one which requires to be dealt with, and it is one which the Chancellor of the Exchequer has said shall be dealt with.

    I think everybody who has considered this matter is anxious to see the law amended. The movement of public opinion outside the House in these matters and the movement inside the House with regard to taxation have produced a problem which might no doubt have been raised in earlier days under other circumstances, though it was not raised, and which, once it has been raised, it is important should be settled as early as possible. The case of Mr. Wilks is admitted on all sides to be a scandal. Great injustice was done to Mr. Wilks under a process of law, and it is our business to find a remedy as soon as we can. I entirely agree with the argument of the right hon. and learned Gentleman as to the inadequacy of the Amendment of my hon. and learned Friend (Mr. Cassel), and I am sure nobody would in the least complain of the right hon. and learned Gentleman having drawn our attention to the Amendment which the Government themselves have put down. Were it not for the fact that he spoke of it as an hypothetical Clause, I should not myself have taken any part in the Debate at this stage, and I should have urged my hon. and learned Friend to withdraw his Amendment so that we could get to the Government Amendment, but, before we part from this Amendment, I would like to have some assurance from the Government that they do mean to deal with this question themselves. I do not profess for a moment to say whether their Amendment is in order or not, but they can make it in order by moving a Resolution, and there is absolutely no excuse, if a remedy is required, for their not doing so.

    This Revenue Bill was introduced months ago, and in the very earliest stages of our discussion on the Bill or on the Resolution attention was called to this matter by my hon. and learned Friend, as it had previously been called by Question and Answer in the House. The Government have had the whole of the Session in which to make up their minds as to how to deal with a problem with which they admit it is highly important to deal, and to find out what is necessary in order to put themselves in order. There is really no excuse for asking us to reject the Amendment of my hon. and learned Friend, whilst at the same time telling us that because they have not taken the ordinary precaution to get the proper authority by resolution they may, at the very last moment, find themselves unable to put down the Amendment which they offer us as against that of my hon. and learned Friend. I do not believe, so far as I know, that any Member of the House on any side objects to the object which both the Government and my hon. and learned Friend have in view. I do not think that anybody would desire to take advantage of any increased facilities for discussion if those are necessary to put the Amendment in order, but I do say that we ought to have from the Government an assurance that this subject shall be dealt with in this Bill. It is not right, as in another ques- tion earlier in the day, that an admittedly necessary reform should be held up merely because the Government do not choose to give serious consideration to their Bill until the very last moment.

    There is an extraordinary regularity about the Committee stages of Finance Bills. We move various Clauses and Amendments on this side of the House, and we always receive the Answer that a very important point has been raised, but the Amendment does not exactly hit the mark, and we are reminded that it it August. It is always August. Last year it was 7th August. [HON. MEMBERS: "No, December."] Well, a portion of the Bill was taken in August. Here we are at 11th August, and the Attorney-General gets up and thanks my hon. and learned Friend for his useful remarks on a very important subject about which the Government have been thinking ever since Mr. Wilks was released from prison, and says that he is not sure whether they are going to move any Amendment at all. He points out the mote in my hon. and learned Friend's eye and forgets altogether about the beam in his own eye, though it is a very large beam. The Government are responsible for the late time at which we are discussing this matter. They are responsible for the Clause they have put down, and they are responsible for the question being raised whether a Resolution is required or not. They are also responsible, if a Resolution is required, for not having put it down. The Clause standing in the name of the Chancellor of the Exchequer is a starred Clause, and we really ought to know whether the Government intend to move it or not. Are we going to have another year during which other Mr. Wilks may be put in prison, and let out just before Parliament meets again? Are we to have nothing whatever done because my hon. and learned Friend is quite unable to hit the mark? It is no answer to my hon. and learned Friend to say, "Oh, well, what are you going to do in this case or that case?" It is quite impossible for my hon. and learned Friend to deal with it at all, but it is not impossible for the Government to deal with it. They purport to deal with it, and yet they do not tell us whether or not they have taken steps to make their Amendment possible or not.

    Is the Committee to proceed without knowing what is the position on this very important matter? Are we to abandon the half measure of my hon. and learned Friend without some undertaking that the Government intend to move their Clause or a part of it? My hon. Friend's Amendment covers a good deal of ground. It would be quite possible for the Attorney-General to accept a portion of it without accepting the whole. The proviso says that no husband shall be committed to prison, nor shall any distress be levied upon his goods, nor shall any other proceedings for any penalty or fine be brought against him for any failure to pay Income Tax. I know that it would not be satisfactory, but I should like the acceptance of the Amendment that the husband should not be committed to prison. It would be useful. It might even be possible to go so far as not to levy distress upon his goods. If the Chancellor of the Exchequer cannot move his Clause which is upon the Paper, then I ask the Government to at least accept a portion of the Clause moved by my hon. and learned Friend. If my hon. Friend's Amendment covers too wide a ground, let The Government accept a portion of it only, but do not let us say that the House of Commons is so impotent in the management of its business and the recognition of real and serious grievances that it must adjourn this year without having taken any steps of any sort in a matter which undoubtedly calls for urgent remedy, as the Government themselves recognise.

    We are in the unfortunate position of not knowing whether the Clause upon the Paper in the name of the Chancellor of the Exchequer is in order or not.

    If the hon. Baronet appeals to me, I have no objection to stating clearly that I must supply the same rule to the Government as to a private Member. If a new subject is proposed, it clearly needs a Resolution.

    The new Clause to which the Attorney-General alluded being out of order, the only matter which is before us is the Amendment of my hon. and learned Friend. Here is a very important Amendment, so important that the Government have themselves put down something of a similar character, and I really do think we ought to have the advantage of the presence of the Chancellor of the Exchequer. Yet when that something put down by the Government is out of order the Chancellor of the Exchequer is not here to tell my hon. and learned Friend what he proposes to do in the matter. The Attorney-General gave no indication what action the Government might be disposed to take, and all he said was that if my hon. and learned Friend's Amendment were carried, then the Government would have to depend on the faith and goodwill of the wife in order to obtain the Income Tax. That is a very weak argument, and I am surprised that so able a man as the Attorney-General should use it. It renders the Government open to the criticism that all they have to do is to put down a Resolution to provide that the wife shall pay the Income Tax in the ordinary way. I admit the time is rather short, but I am inclined to think that if notice was given this afternoon the Resolution could be moved to-morrow in Committee and the Report stage of it could be taken on Wednesday. I very much doubt if the Finance Bill will go to the House of Lords before early on Thursday, but arrangements could be made to send it there by four or five o'clock. It is not our fault that the present difficulty has arisen; it is the fault of the Government, who have wasted all these months when they ought to be dealing with finance, one of the most important matters the House has to consider, and have been dealing with other things which, in my humble opinion, are not so important.

    I cannot agree with the suggestion of my hon. and learned Friend (Mr. Pollock), because I am afraid that what would happen would be, if the Government accepted the suggestion, and only a portion of the Amendment were carried, we should have no safeguard that next Session the whole matter would not be allowed to drop. It is rather dangerous to trust the Government to that extent. I would trust them no further than I can see them. I would like this to be done if my hon. and learned Friend withdraws the Amendment. The Attorney-General should state that owing to matters over which the Government has no control they have been unable to bring forward the Committee stage of the Finance Bill earlier, and, consequently, are now in an awkward position in regard to the Amendment all desire to make, but they will give an undertaking, provided my hon. and learned Friend withdraws his Amendment, and in view of the fact that this afternoon the Chancellor of the Exchequer promised to bring the Finance Bill in earlier next Session—

    The pledge might apply equally to the Finance Bill, because the original intention of having two Bills was, that the Finance Bill should be introduced first and passed quickly, and should be followed by the Revenue Bill. If the right hon. and learned Gentlemen could give some general undertaking that the Finance Bill shall be brought in early next year, and that an Amendment in the sense embodied in my hon. Friend's Amendment and accompanied by the necessary Resolution, providing powers to obtain payment of Income Tax from the wife, shall he introduced and pressed, if that can be done I think it would be better.

    I have not finished what I was going to say, but as the right hon. and learned Gentleman seems impressed, I will at once sit down.

    I was anxious to state our view to the Committee at once. I was prevented by the Rules of Order, when I spoke before, from dealing with the Government proposal, and I could not take upon myself to rule it out of order. I, therefore, did not indicate there might be difficulty in discussing the Clause. I agree with a considerable part of the hon. Baronet's speech and am quite prepared to say this. We all concur that the law requires amendment. That has already been stated by the Chancellor of the Exchequer. We thought it our duty to put our Clause on the Paper, in order that hon. Members interested in the subject might see what were the proposals of the Government. It is an advantage, at any rate, to the House to have the Government proposals before it, but, according to the ruling of the Chair and having regard to the time at our disposal, it does not seem to me we can carry this Clause this Session. Therefore, the proper and convenient way of dealing with the matter would be this. The Government have now stated its intention to a mend the law. It. has formulated in the Clause on the Paper the view which it holds and is prepared to propose to the House. It is given in a very extended form so that everyone can follow quite easily what the Government proposes to do when we are dealing, as we must deal, with the Revenue Bill next year. I think it would be very much better we should deal with all these questions that arise in the same Revenue Bill, which is for the purpose of imposing taxation and of dealing with taxation generally and the law relating to it. I will give an undertaking to this Committee that we will introduce this or a similar Clause next year—it may be we can improve on this, for, undoubtedly, the matter is a very complicated one, and all will desire to put the Clause in a practical shape. Therefore, there is no disadvantage in having a further opportunity of discussing the question. But the substance of the Clause is here. I will undertake that that Clause, in substance, shall be proposed next year, and if the hon. and learned Member will withdraw his Amendment, then I will give that undertaking to the House.

    I never like to appear churlish when the Government make an offer in response to criticisms or suggestions from this side of the House. But I cannot say I think that, on this question, the undertaking is either satisfactory or creditable to them. I do not understand why they should not even now deal with the matter as it ought to be dealt with in the present Bill. My hon. Friend the Member for the City of London is a very sanguine, confiding person. He is one of those of whom the Prime Minister has spoken as "incurable optimists." He thinks it possible by introducing the Revenue Bill early next Session to carry out the object of the present Clause. We no doubt shall see the Bill early next Session, because the Government has promised it shall be introduced early, and they will keep a promise of that kind. But when will it be passed? When shall we discuss it For aught we know, and indeed, in all probability we shall not get an opportunity of really discussing it until the closing weeks of next Session. Everything will then be rushed, and we shall be told that, like it or lump it, we must take it or leave it, for there is no time to put in any Amendment. The Government have no excuse in this matter. This proposal has not taken them by surprise. It is not an Amendment which appeared for the first time on the Paper on Friday. If it were, there would be very good grounds for complaint on their part. But they had notice at the very beginning of the Session. They have had a whole Session to think about it, and there is absolutely no reason why, if they had not paid a little attention to their normal business they should not have got this Clause in order and have made the necessary Motion.

    It is possible to do it still. I now make an appeal to the Chancellor of the Exchequer and to the Attorney-General that they should take that step. Let them move the Committee stage of the enabling Resolution to-morrow; then they can put the Clause into the Bill in Committee, they can take the Report of the Bill on Thursday, and the Third Reading on Friday. Nobody is anxious to prolong the Session into another week, nobody is anxious to have undue discussion about this particular proposal, as to the objects of which we are all agreed. There must, of course, be some discussion as to the practical effect of the Clause which the Chancellor of the Exchequer had put down, and as to its phraseology. But, speaking generally for myself and my Friends, I say there is no desire to obstruct or place unnecessary difficulties in the way of the Government. It is a subject on which the Government had full notice at the beginning of the Session and they expressed their intention of dealing with it. They ought therefore not now to deprive the House of all opportunity of discussing it in a satisfactory form, simply because they have failed to notice that a Financial Resolution would be needed, or because, having noticed it, they failed to take the necessary steps in time. I suggest there is still time and this is a matter which should be dealt with before the House separates. What is the Chancellor of the Exchequer going to say or do if we have another Wilks case? Should such another case arise is the man to be put in prison and to be kept there, or what is the right hon. Gentleman going to do? It really is not in the interest of anyone to maintain the present condition of affairs. Cannot the Chancellor of the Exchequer arrange to move the Motion to-morrow and put the Clause in order? The remainder of the Bill could be passed through Committee subject to the insertion of this Clause, and thus the alteration in the law could be made during the present Session.

    I am afraid that the right hon. Gentleman, if he had looked into the procedure, would have found it impossible to do it this Session.

    I am not quite certain, but I think it would be possible to take the Committee stage of the Resolution to-morrow at four o'clock, and after that to continue the Committee stage of the Finance Bill; take the Report stage of both the, Resolution and the Bill on Wednesday, and the Third Reading on Thursday.

    I am afraid that the hon. Baronet has missed the point that both the Committee and Report stage of the Resolution must be concluded before the matter can be dealt with in the Bill.

    Is that so? Of course, I speak without having had an opportunity of referring to precedents, but my recollection is very strong that it has been held sufficient if the Committee stage of a Resolution precedes the Committee discussion of a Clause, and if the Report stage of the Resolution precedes the Report discussion of the Clause. I am confident that if you look up the precedents you would find that is so.

    Upon a point of Order. I think I have taken the point which you, Sir, took, that the Committee stage of the Bill could not be begun until the Report stage of the Resolution, as well as the Committee stage, had been obtained. My recollection is that I had a conversation upon this point two or three months ago with the Clerk at the Table, and he told me that I was wrong. My impression is that something of the sort has been done this Session, but I am not quite sure.

    I do not think so. I think the Resolution must go through both stages. Before the Finance Bill can be introduced for its First Reading, a Ways and Means Resolution must be introduced and reported before the House authorises the Committee to proceed with the Bill. Until the House has received the Report from the Committee, it is not in a position to do so. I am afraid the suggestion would mean an extra day.

    In these circumstances I am afraid that it would be quite impossible to deal with the matter without altering the whole of the arrangements which I will not say were agreed to, but which were generally accepted as being the arrangements between both sides for winding up the Session. It is not as if there were something which were very urgent and pressing with which we had to deal. This is a very old grievance, although I agree it is not made any better on that account. It is a grievance I shall be glad to see dealt with. When I was consulting my hon. Friends just now, I was doing so rather with a desire to see if the suggestion of the right hon. Gentleman could be adopted. The present situation is just as unpleasant for those who are collecting the tax as it is for the taxpayer. In some cases we cannot collect our tax. I want to have the matter settled. I am sure it is quite impossible to do so now without completely dislocating the arrangements assented to by the House for winding up the Session. I hope the hon. and learned Gentleman will not, therefore, press his Amendment. I am not quite sure whether it will have to be dealt with in a Revenue Bill or a Finance Bill. I am inclined to believe that it will have to be dealt with in the Finance Bill. Therefore we should have to deal with it in the Finance Bill of next year. It is the sentimental grievance of a few women who own businesses of their own, who are treated as if they were of no account at all, and the notices are sent to their husbands, who may have nothing whatever to do with running the business. Some cases have been brought before me. I hope the right hon. Gentleman will not force the matter now. If it were something of very urgent importance it would be worth while to postpone the rising of the House, but I cannot ask hon. Members to upset the whole of their arrangements in order to carry this through.

    On the point of Order which was raised just now, and which was sprung upon me quite suddenly, I find that I was correct in what I said. On page 560 of Sir Erskine May's book the position is made quite clear. It says:—

    "Before the Clauses and precisions creating such charges can be considered by a Committee on the Bill, a Resolution sanctioning them must be passed by a Committee of the Whole Home appointed upon the recommendation of the Crown, and must be agreed to be the Home."

    If this Amendment is now withdrawn, may we get a definite assurance from the Chancellor of the Exchequer as to the procedure next year? The Attorney-General told us that this Clause would be introduced in the Revenue Bill next year.

    He also said that he would, on behalf of the Government, give an assurance that that Revenue Bill would be introduced early next Session.

    We have consulted the authorities, and are told it must be done in the Finance Bill.

    May we have a definite assurance from the Chancellor of the Exchequer that the Finance Bill will be introduced at the ordinary time, so that the House will have an opportunity of discussing all its Clauses at an early period of the Session? The way in which the House has been treated is really disgraceful. The Government have put down two Clauses, one of which has been ruled out of order, and, from all I hear, the second may be ruled out as well. What assurance have we that the House will have any opportunity of discussing these things at a reasonable period of the Session next year? I hope that if the Amendment is withdrawn the Chancellor of the Exchequer will give us a definite assurance that we shall have an ample opportunity of discussing this and other Clauses of the Finance Bill at a fairly reasonable point of the Session.

    May I make a suggestion to my hon. Friend (Mr. Cassel) with regard to his Amendment? I very much regret that the Chancellor of the Exchequer cannot see his way to accept the suggestion made by my right hon. Friend the Member for East Worcester (Mr. Austen Chamberlain) and proceed with the matter this Session. I suggest that if a date were inserted in the Clause, making it read,

    "Provided always that on and after the 31st March, 1914, no husband shall be committed to prison,"
    that will give us some definite assurance that the matter would be dealt with in the early part of the Session. I agree with the last speaker that we have been scandalously treated in regard to the Finance Bill. I am willing to give the Government full credit for intending to carry out their promise to deal with it early next Session. If we put in some such date as that I have suggested it would strengthen the hands of the Government and give us some definite assurance that the matter will be dealt with in the early part of next Session and not put off until just before the House rises.

    I do not know whether the suggestion just made is acceptable to my hon. and learned Friend, but I certainly do feel it would be desirable to get something as definite as pos- sible in order to secure that this matter will really be dealt with next Session. It is a very unfortunate and unlucky accident that, for the second time this year, a question in which women are very keenly interested should suddenly become impossible to be dealt with owing to difficulties connected with the Rules of Order. I am not for a moment saying anyone is to blame, but it is a very unlucky accident, and it makes it very difficult to explain it to those who are not familiar with the course of procedure in this House, and who are, not unnaturally, a little suspicious as to what goes on within the walls of the House. I hope that in some way or other we shall hear something very definite from the right hon. Gentleman that this subject will be dealt with in the early months of next Session. Even that is not very satisfactory, because who knows what may happen next Session? It is a most difficult thing to phophesy in regard to any Session, and I do not gather that next Session will be an easier Session about which to prophesy than any other Session. If it is at all possible to put in some words which would give some kind of statutory pledge that the matter will be dealt with early next Session, I think that would to some extent meet the difficulty.

    The position in which the Committee finds itself is perfectly scandalous, and it certainly reflects no credit whatever upon the Government. It is quite evident from the speech made by the Attorney-General in answer to the Amendment that he anticipated the ruling which you, Mr. Whitley, have since given. It must have been evident to the Government all along that their Amendment on the Paper could not be moved without a Resolution in Committee of Ways and Means. They surely are not so ignorant of the methods of procedure in this House as to be unaware of that very important fact. This state of things is very discreditable. I understand the present position is that the Government refuse to accept the Amendment of the hon. and learned Member opposite (Mr. Cassel), and that the Government's Amendment dealing with the wider question of the relations between man and wife in regard to Income Tax cannot now be considered this Session. We have a promise from the Attorney-General, since repeated by the Chancellor of the Exchequer, that it shall be dealt with in the Finance Bill or the Revenue Bill of next Session. The Chancellor of the Ex chequer described the grievance as a sentimental one. Surely it is something more than a sentimental grievance to send a man to prison and to keep him there for weeks for the non-payment of a tax he has not the means to pay. I do not think the Chancellor of the Exchequer and the Attorney-General have gone quite far enough in the promise of consideration which they have made. I am fully prepared to accept what they have conceded already, provided they will give a pledge that in the meantime no such prosecution shall be undertaken as that in the case of Mr. Wilkes. We have a right to expect that the Chancellor of the Exchequer will make a promise of that kind.

    May I state my position as Mover of the Amendment? I do not wish to do anything which would disturb the arrangement come to for winding up, the Session, but I should like, before withdrawing the Amendment, to make the strongest possible protest against the the manner in which the matter has been dealt with. The Chancellor of the Exchequer said it was not urgent or pressing. Is it not urgent or pressing that he should carry out undertakings he gives to deputations, whom he led to believe he would make alterations in the law which he said was humiliating to them at present? I feel all the more strongly because this afternoon the undertaking given to the builders was not carried out. Surely it was urgent and pressing that undertakings given by a Minister early in the Session should be performed. The right hon. Gentleman said that he will deal with this matter in the Revenue Bill or the Finance Bill next year. It can be done in either of the two Bills. I think the right hon. Gentleman will find that is so if he will consult his advisers. If again we are to have this separation of the Revenue Bill and the Finance Bill next Session, on the Third Reading of the Finance Bill I intend to raise the strongest possible protest, because it is through that separation we have been prevented from dealing with the matter. The right hon. Gentleman could not have dropped the Amendment under which the builders were to be relieved if there were only a Finance Bill, for he could not have got his Income Tax without dealing with all these other matters. If he will give an undertaking that he will not only introduce some Bill next year, but that he will use all the powers of the Government to force that Bill through, say, before the end of May, I shall be prepared to withdraw my Amendment. I do not think I can go quite so far as some of my hon. Friends in pressing the right hon. Gentleman to put a Clause actually into the Bill, but I think it would be reasonable that he should at least state some definite period early in the Session not merely for introducing the measure, but for carrying it into law. Of course, he cannot undertake to carry it into law, because that is a matter for the House, but he can undertake to use all the forces of the Government. If he will give that undertaking, I shall be willing to withdraw the Amendment, but something more definite than that it shall be put into the Bill, which will be introduced early, we ought to have. I have had this Amendment on the Paper for two months. I have asked the right hon. Gentleman questions about it since last October. I have sometimes felt that I have been unduly insistent in pressing the matter on his attention. The Government has had the fullest possible opportunity of dealing with it. They have themselves undertaken to deal with it, and as they are unable to do so we ought to have a definite statement that he intends to use the force of the Government not merely to introduce, but to pass into law the Revenue Bill or the Finance Bill in which it is to be introduced next Session.

    :I do not want to enter into the controversy which the hon. and learned Gentleman rather lured me on to as to separating the Revenue Bill from the Finance Bill, but I should have thought that what had happened to-day would have been a complete justification for the coarse which we adopted. Had I not done so, the House would have had to sit for another three weeks in order to get rid of Amendments.

    The only difference between earlier and later is this: It will probably take three weeks now, but if we had had it earlier it would have taken two months. As the right hon. Gentleman knows very well it is easier to keep a thing going in the month of May than it is in August. With regard to the question put me, I think it depends entirely on whether it is the Revenue Bill or the Finance Bill. I do not think the Government could possibly give a pledge that both the Revenue Bill and the Finance Bill will be carried through all their stages early. That is an unreasonable demand. Our intention is that the Revenue Bill should be introduced early, and should be discussed early and carried, but when the hon. and learned Gentleman asks us. whether we will give a definite undertaking to put it through before the end of May it would be most improper for the Government to give an undertaking of that kind now, and I cannot imagine any Government giving a pledge of that kind, because we should be pledging ourselves seven or eight months in advance. With regard even to an actual date, that is an impossible undertaking. I cannot go beyond the statement which I am authorised to make, that the Revenue Bill will be introduced early, and that the Second Reading will be taken early in the Session. It is the intention of the Government to get the thing dealt with early in the Session. That would not extend to the Finance Bill, because that could not be carried early in the Session. It will take some time, and it will afford an Opportunity of discussing revenue matters, and therefore the House will be cognisant of this question at an early date in the Session.

    With regard to the undertaking which the hon. Member (Mr. Snowden) asks, that is an impossible undertaking. It is an undertaking that Income Tax which arises where the tax is derivable from a joint account between husband and wife is to be collected. If you say you will not enforce it, you cannot collect it. It is an undertaking which I think, on reflection, my hon. Friend will see no Chancellor of the Exchequer could possibly give. The undertaking which the hon. and learned Gentleman asks is of a different character. I think I have substantially met his case by giving the only undertaking that any Government could give under present conditions. In regard to the criticism which has been passed about it, it is really one of the most difficult problems one is confronted with. It is not so easy as the hon. and learned Gentleman seems to imagine. It is very easy to ask questions about it and to criticise it and to point out the grievance. There is no doubt there is a grievance. I do not bind myself to the word "sentimental." I say it is a humiliating grievance. At the same time it is the most difficult thing in the world to find a remedy which does not deplete the Exchequer by £1,250,000, of which it is very unfair to deprive the Exchequer. I shall be prepared to defend that when the time comes. It took us a very long time before we came to the conclusion as to the best method of dealing with the matter without interfering with the revenue for the year. Here is a grievance which I admit and which I promised to redress, but the difficulty is that there are so many grievances which one must admit and the majority of the House of Commons were of opinion that other measures had to be amended. Having regard to all these conditions, it was quite impossible for us to proceed with this earlier for the reason that the Session started very late. Last Session only came to an end practically in March, and this has been an abnormal Session from that point of view, and we have been driven, through circumstances over which none of us had any control, at the end of the Session to deal with a matter of this kind. Starting our Session in March, it was impossible for us to get our Finance Bill through until late in the year. We have already had about six or seven days' discussion upon it. I do not believe there has been a Session where you have had more financial discussion than you have had this year. The discussion upon the finance of the year has been much more considerable than it has been for years.

    No. Even when the right hon. Gentleman was in office. During the time in which he was Chancellor of the Exchequer I think he will find that we have had more debate upon the Finance Bill of this year than when he was there. I give that promise, but I cannot go beyond it.

    I think the right hon. Gentleman is right in saying he could not promise to pass the Bill before a certain fixed date. But would he give this undertaking, which I hope my hon. and learned Friend will accept, that either in the Revenue Bill or in the Finance Bill, whichever he thinks best, he will introduce a Clause and give the Committee stage, Report stage, and Third Reading before the end of the Session?

    Certainly. I am not at all sure that the hon. and learned Gentleman is not right. I think it depends upon the form of our Resolution whether it is the Revenue Bill or the Finance Bill. I will give him this undertaking. Inasmuch as it will probably be introduced in the Revenue Bill, we hope to introduce it early, but it will be dealt with one way or the other.

    I beg to move, as an Amendment to the proposed Amendment, after the word "that" ["Provided always that no husband"], to insert the words "on and after the first day of June, nineteen hundred and fourteen."

    I think the present position is extraordinarily unsatisfactory, and, for once, I think the hon. Baronet (Sir F. Banbury) is too indulgent to the present Government. The position is quite clear now. The Chancellor of the Exchequer tells us that he cannot pass both the Revenue Bill and the Finance Bill early. It is most probable that this Amendment will have to take place in the Finance Bill, and he proposes to take the Revenue Bill early. The result is that in all probability this question will not be discussed effectively until the very end of the Session. Who can tell what will happen before the end of the Session? That seems to be a most unsatisfactory undertaking. As far as I am concerned, I should like to see a much more definite state of things. It appears to me that the reasonable thing is to pass the Amendment of my hon. and learned Friend with a limit of time. I cannot conceive any reason why that should not be done, then, whether the Finance Bill or the Revenue Bill, or whether by special Act or some other way, the matter will be definitely dealt with.

    I feel bound to stand by the offer which I made. If the right hon. Gentleman says he will deal with this matter to the extent of using the forces of the Government to carry it into law at an early period of next Session. I do not care whether it is done in the Revenue Bill or the Finance Bill. If he has to do it in the Finance Bill, he has also promised that the Revenue Bill shall be carried at an early period of the Session.

    It is obviously impossible that both the Revenue Bill and the Finance Bill shall be dealt with early. If it is possible to have this in the Revenue Bill—and I think it will be—I will undertake that it shall be dealt with early. If the Rules of Order prevent it being dealt with in the Revenue Bill, it must be done in the Finance Bill.

    7.0 P.M.

    What the hon. and learned Gentleman says is not quite satisfactory. Personally, I believe he can deal with it in the Revenue Bill, because the Resolution is to amend the law dealing with Customs and Excise, including Inland Revenue. It is rather unsatisfactory to have it left uncertain, and what is still more unsatisfactory is that the right hon. Gentleman tells us the Finance Bill will not be dealt with early, because he is already telling us in anticipation that we shall probably have the Finance Bill in December. It certainly is unsatisfactory to have the announcement in advance that it cannot be dealt with at an early period of the Session. Though the right hon. Gentleman leaves it in that unsatisfactory position, I should not myself be prepared to press the Amendment to a Division, but I feel bound to stand by the offer I have made to the right hon. Gentleman. If the Noble Lord, notwithstanding, presses the Amendment to a Division, I think he is quite justified, in view of the unsatisfactory statement which has been made.

    The Chancellor of the Exchequer has stated that the Finance Bill could not be brought in early. Why should not that Bill be brought in early as well as the Revenue Bill? If we are anxious to get business

    Division No. 269.]

    AYES.

    [7.5 p.m.

    Anson, Rt. Hon. Sir William R.Fletcher, John SamuelNicholson, William G. (Petersfield)
    Baird, John LawrenceGastrell, Major W. HoughtonPease, Herbert Pike (Darlington)
    Banbury, Sir Frederick GeorgeGibbs, George AbrahamPollock, Ernest Murray
    Barlow. Montague (Salford, South)Gilmour, Captain JohnPretyman, Ernest George
    Barnston, HarryGrant, James AugustusPryce-Jones, Colonel E.
    Bathurst, Charles (Wilts, Wilton)Guinness, Hon. Rupert (Essex, S.E.)Rawlinson, John Frederick Peel
    Beach, Hon. Michael Hugh HicksHamilton. C. G. C. (Ches., Altrincham)Ronaldshay, Earl of
    Benn, Arthur Shirley (Plymouth)Harris, Henry PercyRoyds, Edmund
    Bird, AlfredHarrison-Broadley, H. B.Salter, Arthur Clavell
    Blair, ReginaldHenderson, Major H. (Berks, Abingdon)Samuel, Samuel (Wandsworth)
    Boyle, William (Norfolk, Mid)Henderson, Sir A. (St. Geo., Han. Sq.)Sanders, Robert Arthur
    Boyton, JamesHewins, William Albert SamuelSnowden, Philip
    Bridgeman, William CliveHibbert, Sir Henry F.Stanley, Major Hon. G. F. (Preston)
    Bull, Sir William JamesHills, John WallerStewart, Gershom
    Burdett-Coutts, W.Hoare, Samuel John GurneySykes, Sir Mark (Hull. Central)
    Campion, W. R.Hope, James Fitzalan (Sheffield)Talbot, Lord Edmund
    Cecil, Lord Hugh (Oxford University)Houston. Robert PatersonTerrell, George (Wilts, N.W.)
    Chamberlain, Rt. Hon. J. A. (Worc's,E.)Hunt, RowlandThompson, Robert (Belfast, North)
    Chancellor, Henry GeorgeIngleby, HolcombeTryon, Captain George Clement
    Clive, Captain Percy ArcherKerry, Earl ofWedgwood, Josiah C.
    Coates, Major Sir Edward FeethamKinloch-Cooke. Sir ClementWhite, Major G. D. (Lancs., Southport)
    Craik, Sir HenryLarmor, Sir J.Wolmer, Viscount
    Dalziel, Davison (Brixton)Law, Rt. Hon. A. Bonar (Bootle)Wood, John (Stalybridge)
    De Forest, BaronLewisham, ViscountWorthington-Evans. L.
    Dickson. Rt. Hon. C. ScottLloyd, George Butler (Shrewsbury)Yate, Colonel C. E.
    Du Cros, Arthur PhilipLowe, Sir F, W. (Birm., Edgbaston)Younger, Sir George
    Duke, Henry EdwardLyttelton, Hon. J. C. (Droitwich)
    Eyres-Monsell. Bolton M.Magnus, Sir Philip
    Fell, ArthurMills, Hon. Charles ThomasTELLERS FOR THE AYES.—Lord Robert Cecil and Mr. Mount.
    Fisher, Rt. Hon. W. HayesMorrison-Bell. Capt. E. F. (Ashburton)
    Fitzroy. Hon. Edward A.Newdegate, F. A.

    through, there is no reason why it should not be done early in the Session. It is ridiculous to tell us, without giving any reason, that it is impossible to bring in the Finance Bill early. We are dealing here with a new Clause which the Government have put down on the Paper to-day. The Government say they wish to move it, and my hon. Friends on this side of the House say that it will go a long way to meet the grievance they complain of. Why should not that Clause be passed this Session? The necessary Financial Resolution could be passed on Tuesday and Wednesday. It would be, I imagine, a purely formal matter if the House is agreed as to the desirability of the Clause. The Finance Bill could be taken on Thursday or Friday. There will be no attempt on the part of Members on this side of the House to use more time than is necessary to do these formal matters. I can undertake that certain of us would not be present on Friday if that would facilitate this business being got through by the Chancellor of the Exchequer. This is art urgent and important matter. Cannot the Government see their way to get the Resolution on Tuesday and Wednesday, and then pass the Bill on Friday?

    Question put, "That the words 'on and after the first day of June, nineteen hundred and fourteen,' be there inserted in the proposed Amendment."

    The Committee divided: Ayes, 88; Noes, 194.

    NOES.

    Abraham, William (Dublin, Harbour)Hayward, EvanO'Dowd, John
    Acland, Francis DykeHazleton, RichardO'Kelly, Edward P. (Wicklow, W.)
    Adamson, WilliamHenderson, John M. (Aberdeen, W.)O'Kelly, James (Roscommon, N.)
    Alden, PercyHenry, Sir CharlesO'Malley, William
    Allen, Rt. Hon. Charles P. (Stroud)Higham, John SharpO'Neill, Dr. Charles (Armagh, S.)
    Asquith, Rt. Hon. Herbert HenryHobhouse, Rt. Hon. Charles E. H.O'Shaughnessy, P. J.
    Baker, Harold T. (Accrington)Hodge, JohnO'Shee, James John
    Baker, Joseph Allen (Finsbury, E.)Hogg, David C.O'Sullivan, Timothy
    Balfour, Sir Robert (Lanark)Hodge, James MylesOuthwaite, R. L.
    Barlow, Sir John Emmott (Somerset)Holmes, Daniel TurnerPalmer, Godfrey Mark
    Beauchamp, Sir EdwardHudson, WalterParker, James (Halifax)
    Beck, Arthur CecilHughes, Spencer LeighParry, Thomas H
    Bonn, W. W. (T. Hamlets, St. George)Illingworth, Percy H.Pearce, Robert (Staffs, Leek)
    Boland, John PiusIsaacs, Rt. Hon. Sir RufusPearce, William (Limehouse)
    Booth, Frederick HandelJohn, Edward ThomasPhillips, John (Longford, S.)
    Bowerman, Charles W.Jones, Rt.Hen.Sir D.Brynmor (Swansea)Ponsonby, Arthur A. W. H.
    Brady, Patrick JosephJones, J. Towyn (Carmarthen, East)Price, C. E. (Edinburgh, Central)
    Bryce, J. AnnanJones, William (Carnarvonshire)Primrose, Hon. Neil James
    Burke, E. Haviland-Joyce, MichaelPringle, William M. R.
    Burns, Rt. Hon. JohnKeating, MatthewRaffan, Peter Wilson
    Buxton, Rt. Hon. Sydney C. (Poplar)Kellaway, Frederick GeorgeRaphael, Sir Herbert H.
    Byles, Sir William PollardKelly, EdwardRea, Walter Russell (Scarborough)
    Carr-Gomm, H. W.Kennedy, Vincent PaulReddy. Michael
    Cawley, Sir Frederick (Prestwich)Kilbride, DenisRedmond, John E. (Waterford)
    Chapple, Dr. William AllenKing, JosephRedmond, William (Clare, E.)
    Clancy, John JosephLambert, Rt. Hon. G. (Devon, S.Molton)Redmond, William Archer (Tyrone, E.)
    Clough, WilliamLambert, Richard (Wilts, Cricklade)Richardson, Albion (Peckham
    Collins, Godfrey P. (Greenock)Lardner, James C. R.Roberts, Charles H. (Lincoln)
    Condon, Thomas JosephLaw, Hugh A. (Donegal, West)Robertson, John M. (Tyneside)
    Cotton, William FrancisLawson, Sir W. (Cumb'rid, Cockerm'th)Robinson, Sidney
    Cowan, W. H.Leach, CharlesRoche, Augustine (Louth)
    Craig, Herbert J. (Tynemouth)Lewis, Rt. Hon. John HerbertRoe, Sir Thomas
    Crumley, PatrickLundon, ThomasRunciman, Rt. Hon. Walter
    Cullinan, JohnLyell, Charles HenrySamuel, Rt. Hon. H. L. (Cleveland)
    Davies, David (Montgomery Co.)Lynch, Arthur AlfredScanlan, Thomas
    Davies, Timothy (Lincs., Louth)McGhee, RichardScott, A. MacCallum (Gras., Bridgeton)
    Davies, Sir W. Howell (Bristol, S.)Macnamara, Rt. Hon. Dr. T. J.Sheehy, David
    Denman, Hon. Richard DouglasMacNeill, J. G. Swift (Donegal, South)Shortt, Edward
    Devlin, JosephMacpherson, James IanSimon, Rt. Hon. Sir John Alisebrook
    Dillon, JohnMacVeagh, JeremiahSmith, Albert (Lancs., Clitheroe)
    Donelan, Captain A.McKenna, Rt. Hon. ReginaldSmyth, Thomas F. (Leitrim, S.)
    Doris, WilliamMasterman, Rt. Hon. C. F. G.Strauss, Edward A. (Southwark, West)
    Duffy, William J.Meagher, MichaelTaylor, Thomas (Bolton)
    Duncan, C. (Barrow-in-Furness)Meehan, Francis E. (Leitrim, N.)Tennant, Harold John
    Edwards, Clement (Glamorgan, E.)Meehan, Patrick J. (Queen's Co., Leix)Thomas, J. H.
    Esmonde, Dr. John (Tipperary, N.)Molloy, MichaelThorne, G. R. (Wolverhampton)
    Falconer, JamesMoney, L. G. ChiozzaThorne, William (West Ham)
    Ferens, Rt. Hon. Thomas RobinsonMontagu, Hon. E. S.Toulmin, Sir George
    Ffrench, PeterMooney, John J.Trevelyan, Charles Philips
    Fitzgibbon, JohnMorgan. George HayUre, Rt. Hon. Alexander
    George, Rt. Hon. D. LloydMorison, HectorWardle, George J.
    Ginnell, LaurenceMorton, Alpheus CleophasWarner, Sir Thomas Courtenay
    Gladstone, W. G. C.Muldoon, JohnWebb, H.
    Goldstone, FrankMunro, RobertWhite, J. Dundas (Glasgow, Tradeston)
    Greig, Colonel James WilliamMunro-Ferguson, Rt. Hon. R. C.White, Sir Luke (Yorks, E.R.)
    Griffith, Ellis JonesMurray, Captain Hon. Arthur C.White, Patrick (Meath, North)
    Guest, Major Hon. C. H. C. (Pembroke)Neilson, FrancisWhitehouse, John Howard
    Guest, Hon. Frederick E. (Dorset, E.)Nolan, JosephWilson. Hon. G. G. (Hull, W.)
    Gwynn, Stephen Lucius (Galway)Norton, Captain Cecil W.Wilson. W. T. (Westhoughton)
    Hackett, JohnNugent, Sir Walter RichardWing, Thomas Edward
    Harcourt, Rt. Hon. Lewis (Rossendale)O'Brien, Patrick (Kilkenny)Wood, Rt Hon. T. McKinnon (Glasgow)
    Harcourt, Robert V. (Montrose)O'Connor, John (Kildare, N.)Yoxall, Sir James Henry
    Harmsworth, Cecil (Luton, Beds)O'Connor, T. P. (Liverpool)
    Harmsworth, R. L. (Caithness-shire)O'Doherty, PhilipTELLERS FOR THE NOES.—Mr. Gulland and Mr. G. Howard.
    Harvey, T. E. (Leeds. West)O'Donnell, Thomas
    Hayden, John Patrick

    Question, "That those words be there inserted," put, and negatived.

    The next Amendment which is in order is that standing in the name of the hon. Member for Warwick (Mr. Pollock) (Provision to Allow Deductions in Respect of Inherently Wasting Assets Existing Outside the United Kingdom for Purposes of Income Tax).

    There is a Government Clause down before that with respect to the deduction of Income Tax allowed to Members of Parliament in respect of their salaries (Deductions in Respect of Expenses Involved in Earning Salary, etc).

    Before we reach that point, I ought to inform the hon. Member that, so far as I can see, the Government Clause requires a Resolution. If the hon. Member will look at Sub-section (2), he will see that while it certainly gives relief in one direction, it may also diminsh the relief in others.

    In that case I must move, "That the Chairman do now report Progress and ask leave to sit again," for the purpose of entering a protest. Here again is a matter upon which I have been promised definitely on two occasions that the Government would propose legislation, and now it cannot be carried through on account of the neglect by the Government of financial business. It will be within the recollection of the House that on a Motion for the adjournment I raised the question of the regularity and propriety of the Government allowing a uniform deduction of Income Tax on £100 to all Members of Parliament. The Chancellor of the Exchequer was forced to admit that there was no legal sanction whatever for that method of dealing with the matter, and he promised to introduce legislation which would regularise it. I raised the same point again on the Revenue Bill, for the right hon. Gentleman had told me that he would introduce a Clause in that Bill. When we came to the Revenue Bill there was no Clause in it. I pointed that out on the Second Reading to the right hon. Gentleman and he told me it was more appropriate to the Finance Bill. I said that I would wait for the Finance Bill so long as I was certain of having an opportunity of discussing it. The right hon. Gentleman said he would introduce it in one Bill or the other. It was not in the Revenue Bill, and now we cannot discuss it on the Finance Bill. It is an extraordinary position. The Chancellor of the Exchequer deals in an irregular manner with the Income Tax appertaining to Members' salaries; then he promises to rectify his irregularity; and then he proceeds to do so in an irregular manner. We have had an example to-day of the position to which the management of the finances of this country has been reduced. They are absolutely neglected and bungled at every point. That is the result of the Chancellor of the Exchequer trying to do too much other work. I have always said that I thought it a most unfortunate thing that insurance should be combined with the Treasury and that the right hon. Gentleman should constantly be dealing with other subjects, and that in consequence the finances of the country are being neglected in the most shameful manner which reflects the greatest discredit, not only on the Government, but on this house.

    No one knows better than the hon. and learned Member-that it is very difficult to know when one puts down a Motion of this kind, whether it is in order or not. He, with all his astuteness, has been the victim of the Rules of Order in this House almost as much as any man that I know of, and it shows how very difficult it is to keep within the four corners of order in putting a Motion down. On this Motion I shall submit a question of order to the Chairman as to whether it could be brought within the Rules of Order by an addition which I propose to make. My own impression is that it could be. The only reason why it is out of order is, I understand, because it is conceivable that there maybe cases where the abatement would be heavier than the amount which we allow, and the moment you fix an average you are ruling out those who might claim, say, £110 or £120, and, therefore, that would be a charge and you cannot do that without a Resolution. I shall submit to you when the time comes that that would be put in order by saying that where it exceeds £100 the Member should he entitled to claim an amount exceeding £100, if it is possible for him to prove it. That would put the matter right. The Rules of this House are exceedingly subtle and very difficult. Even the hon. Baronet the Member for the City of London was recently tripped up on a point of Order, and no one knows the Rules of the house better than he. He knows very well how exceedingly difficult it is to frame absolutely watertight Amendments which are not capable somehow or other of being ruled out of order. I agree with the hon. and learned Member that there is a pledge to deal with the matter, and the moment that this is withdrawn I shall try to introduce words to make that possible. I shall do all in the power of the Government to bring it within the Rules of Order so as to enable the hon. and learned Member to get a discussion on the question which the Government pledged itself to give him the opportunity of having.

    I do not know whether it is possible for you to help the Committee at large by expressing an opinion as to whether, subject to the Amendment which the Chancellor of the Exchequer has suggested, the Clause which appears in his name on the Paper would be in order. I understand that the difficulty arises from the fact that as the Clause now stands some individuals might get a less rebate, and, therefore, might have a heavier charge. Would it be possible to put the whole Clause in order merely by adding a proviso that no individual should by reason of the action of the Treasury, under this Clause, be deprived of any higher abatement to which otherwise he would have been entitled?

    That would bring it within the rules, and I think would meet the difficulty which I have.

    In those circumstances I will withdraw my Motion to report Progress, but I am not to be taken as meaning that I acquiesce in the Clause on all points.

    Motion to report Progress, by leave, withdrawn.

    There is a manuscript Amendment to Clause 2, handed in by the hon. and learned Member for Cambridge University, dealing with the income of husbands and wives. It is not so wide as the discussion which we have had just now, but I do not say that it is out of order if he wishes to move it.

    I beg to move, to add to the Clause, the words, "Except that for the purposes of exemption from Income Tax, the incomes of husbands and wives shall be treated as separate." This is an Amendment which I have moved before, and as to which I have never heard any reasonable grounds for resistance.

    I understood that the Opposition, after taking a decision upon the Motion of the Noble Lord, were prepared subject to that to accept the undertaking of the Government to deal with the whole point.

    Certainly; but this is an absolutely different point. This is a point which is not dealt with in any way in the new Clause and is not touched in the Amendment of the hon. Member. The suggestion which I am making is a time honoured suggestion, that is, that for the purpose of dealing with abatements for Income Tax, that is the exemption of £160 a year, and even abatements up to £700 a year, the incomes of husband and wife should not be treated as one. At the present moment an unmarried person with an income of £120 a year is exempt from Income Tax altogether. If two such persons marry their total income is £240, and that is not exempt from Income Tax. In the same way, as far as abatements are concerned, the same point arises up to £700 a year. I think that up to 1906 or 1907 I used to move this Amendment in a much more drastic form, namely, that the incomes of the husband and wife should be added together and divided by two. Even to that more drastic form no real reason of opposition was ever adduced; but I have modified that form in recent years. I am not dealing with the question of Super-tax at all, I am simply dealing with the small incomes up to £700 a year. I have never heard any reason, except difficulties of the kind sometimes brought forward by the late Chancellor of the Exchequer, why the obvious injustice existing at present should not be remedied. There is no possible reason why the income of husband and wife should be added together for the purpose of ascertaining Income Tax. If anything, their expenses probably are just as large, and certainly in certain circumstances very much larger than when they were living apart. I venture to submit that this is a grievance which does cry for redress.

    :I agree with the hon. and learned Member that this is a time-honoured Resolution. It has now become a hardy annual, and I have only got to say, in the first place, that it would cost too much—I am not certain that it would not cost over £1,000,000—to grant this concession.

    I do not think that that would make very much difference. Probably the abatement is intended to relieve those with small incomes for household purposes where the husband and wife together have got an income which places them above the limit at which abatements are allowed. I do not think it is fair that they should escape. If a husband and wife have got £500 each with an aggregate of £1,000 they will be able to obtain abatement, whereas a man with a large family and an income of over £700 would have no abatement at all. I am prepared to defend the system which has been adopted by Chancellors of the Ex-

    Division No. 270.]

    AYES.

    [7.30 p.m.

    Baird, John LawrenceGibbs, George AbrahamPollock, Ernest Murray
    Barlow, Montague (Salford, South)Gilmour, Captain JohnPretyman, Ernest George
    Barnston, HarryGuinness, Hon. Rupert (Essex, S.E.)Pryce-Jones, Colonel E.
    Bathurst, Charles (Wilts, Wilton)Hall, Frederick (Dulwich)Ronaldshay, Earl of
    Bird, AlfredHamilton, C. G. C. (Ches., Altrincham)Royds, Edmund
    Blair, ReginaldHarris, Henry PercySalter, Arthur Clavell
    Boyton, JamesHarrison-Broadley, H. B.Samuel, Samuel (Wandsworth)
    Bridgeman, William CliveHenderson, Sir A. (St. Geo., Han. Sq.)Sanders, Robert Arthur
    Bull, Sir William JamesHewins, William Albert SamuelSnowden, Philip
    Burdett-Coutts, W.Hibbert, Sir Henry F.Stanley, Hon. G. F. (Preston)
    Cecil, Lord Hugh (Oxford University)Hoare, S. J. G.Stewart, Gershom
    Chaloner, Colonel R. G. W.Hope, James Fitzalan (Sheffield)Talbot, Lord Edmund
    Clive, Captain Percy ArcherHouston, Robert PatersonTerrell, George (Wilts, N.W.)
    Coates, Major Sir Edward FeethamKerry, Earl ofTryon, Captain George Clement
    Craik, Sir HenryKinloch-Cooke, Sir ClementWedgwood, Josiah C.
    Dalziel, Davison (Brixton)Lewisham, ViscountWhite, Major G. D. (Lancs., Southport)
    Dickson, Rt. Hon. C. ScottLloyd, George Butler (Shrewsbury)Wolmer, Viscount
    Du Cros, Arthur PhilipLyttelton, Hon. J. C. (Droitwich)Wood, John (Stalybridge)
    Duke, Henry EdwardMagnus, Sir PhilipWorthington-Evans, L.
    Eyres-Monsell, Bolton M.Mills, Hon. Charles ThomasYate, Colonel C. E.
    Fell, ArthurMorrison-Bell, Capt. E. F. (Ashburton)Younger, Sir George
    Fisher, Rt. Hon. W. HayesMount, William Arthur
    Fitzroy, Hon. Edward A.Newdegate, F. A.TELLERS FOR THE AYES.—Mr. Rawlinson and Lord Robert Cecil.
    Fletcher, John SamuelNicholson, William G. (Petersfield)
    Gastrell, Major W. Houghton

    NOES.

    Abraham, William (Dublin, Harbour)Dillon, JohnJones, William (Carnarvonshire)
    Acland, Francis DykeDonelan, Captain A.Jowett, Frederick William
    Adamson, WilliamDoris, WilliamJoyce, Michael
    Allen, Rt. Hon. Charles P. (Stroud)Duffy, William J.Keating, Matthew
    Asquith, Rt. Hon. Herbert HenryDuncan, C. (Barrow-in-Furness)Kellaway, Frederick George
    Baker, Harold T. (Accrington)Esmonde, Dr. John (Tipperary, N.)Kelly, Edward
    Baker, Joseph Allen (Finsbury, E.)Ffrench, PeterKennedy, Vincent Paul
    Balfour, Sir Robert (Lanark)Field, WilliamKilbride, Denis
    Barlow, Sir John Emmett (Somerset)Fitzgibbon, JohnKing, Joseph
    Beauchamp, Sir EdwardGeorge, Rt. Hon. D. LloydLambert, Rt. Hon. G. (Devon, S. Morton)
    Beck, Arthur CecilGinnell, L.Lambert, Richard (Wilts, Cricklade)
    Benn, W. W. (T. Hamlets, St. George)Gladstone, W. G. C.Lardner, James C. R.
    Boland, John PlusGoldstone, FrankLaw, Hugh A. (Donegal, West)
    Booth, Frederick HandelGreig, Colonel James WilliamLawson, Sir W. (Cumb'rid, Cockerm'th)
    Bowerman, Charles W.Griffith, Ellis JonesLeach, Charles
    Brady, Patrick JosephGuest, Hon. Major C. H. C. (Pembroke)Lewis, Rt. Hon. John Herbert
    Bryce, J. AnnanGuest, Hon. Frederick E. (Dorset, E.)Lundon, Thomas
    Burke, E. Haviland-Gwynn, Stephen Lucius (Galway)Lyell, Charles Henry
    Burns, Rt. Hon. JohnHackett, JohnLynch, Arthur Alfred
    Buxton, Noel (Norfolk, North)Harcourt, Rt. Hon. Lewis (Rossendale)McGhee, Richard
    Buxton, Rt. Hon. Sydney C. (Poplar)Harcourt, Robert V. (Montrose)Macnamara, Rt. Hon. Dr. T. J.
    Byies, Sir William PollardHarmsworth, Cecil (Luton, Beds)MacNeill, J. G. Swift (Donegal, South)
    Carr-Gomm, H. W.Harmsworth, R. L. (Caithness-shire)Macpherson, James Ian
    Cawley, Sir Frederick (Prestwich)Harvey, T. E. (Leeds, West)MacVeagh, Jeremiah
    Chancellor, Henry GeorgeHayden, John PatrickMcKenna, Rt. Hon. Reginald
    Chapple, Dr. William AllenHayward, EvanMasterman, Rt. Hon. C. F. G.
    Clancy, John JosephHazleton, RichardMeagher, Michael
    Clough, WilliamHenderson, John M. (Aberdeen, W.)Meehan, Francis E. (Leitrim, N.)
    Collins, Godfrey P. (Greenock)Henry, Sir CharlesMeehan, Patrick J. (Queen's Co., Leix)
    Condon, Thomas JosephHigham, John SharpMolloy, Michael
    Cotton, William FrancisHobhouse, Rt. Hon. Charles E. H.Money, L. G. Chiozza
    Cowan, William HenryHodge, JohnMontagu, Hon. E. S.
    Craig, Herbert J. (Tynemouth)Hogg, David C.Mooney, John J.
    Crumley, PatrickHogge, James MylesMorgan, George Hay
    Cullinan, JohnHolmes, Daniel TurnerMorison, Hector
    Davies, David (Montgomery Co.)Hudson, WalterMorton, Alpheus Cleophas
    Davies, Timothy (Lincs., Louth)Hughes, Spencer LeighMuldoon, John
    Davies, Sir W. Howell (Bristol, S.)Illingworth, Percy M.Munro, Robert
    De Forest, BaronIsaacs, Rt. Hon. Sir RufusMunro-Ferguson, Rt. Hon. R. C.
    Delany, WilliamJohn, Edward ThomasMurray, Captain Hon. Arthur C.
    Denman, Hon. Richard DouglasJones, Rt. Hon. Sir D. Brynmor (Swansea)Neilson, Francis
    Devlin, JosephJones, J. Towyn (Carmarthen, East)Nolan, Joseph

    chequer on its merits, and certainly I could not deal with the question this year.

    Question put, "That those words be there inserted."

    The Committee divided: Ayes, 70; Noes, 193.

    Norton, Captain Cecil W.Pringle, William M. R.Taylor, Thomas (Bolton)
    Nugent, Sir Walter RichardRattan, Peter WilsonThomas, James Henry
    O'Brien, Patrick (Kilkenny)Raphael, Sir Herbert H.Thorne, G. R. (Wolverhampton)
    O'Connor, John (Kildare, N.)Rea, Walter Russell (Scarborough)Thorne, William (West, Ham)
    O'Connor, T. P. (Liverpool)Reddy, MichaelToulmin, Sir George
    O'Doherty, PhilipRedmond, John E. (Waterford)Trevelyan, Charles Philips
    O'Donnell, ThomasRedmond, William (Clare, E.)Ure, Rt. Hon. Alexander
    O'Dowd, JohnRedmond, William Archer (Tyrone, E.)Wardle, G. J.
    O'Kelly, Edward P. (Wicklow, W.)Richardson, Albion (Peckham)Warner, Sir Thomas Courtenay
    O'Kelly, James (Roscommon, N.)Roberts, Charles H. (Lincoln)Webb, H.
    O'Malley, WilliamRobertson, John M. (Tyneside)White, J. Dundas (Glasgow, Tradeston)
    O'Neill, Dr. Charles (Armagh, S.)Robinson, SidneyWhite, Sir Luke (Yorks, E.R.)
    O'Shaughnessy, P. J.Roche, Augustine (Louth)White, Patrick (Meath, North)
    O'Shee, James JohnRoe, Sir ThomasWhitehouse, John Howard
    O'Sullivan, TimothyRunciman, Rt. Hon. WalterWilson, Hon. G. G. (Hull, W.)
    Palmer, Godfrey MarkSamuel, Rt. Hon. H. L. (Cleveland)Wilson, W. T. (Westhoughton)
    Parker, James (Halifax)Scanlan, ThomasWing, Thomas Edward
    Parry, Thomas H.Scott, A. MacCallum (Glas., Bridgeton)Wood, Rt. Hon. T. McKinnon (Glasgow)
    Pearce, Robert, (Staffs, Leek)Sheehan, Daniel DanielYoxall, Sir James Henry
    Pearce, William (Limehouse)Shortt, Edward
    Pease, Herbert Pike (Darlington)Simon, Rt. Hon. Sir John Allsebrook
    Phillips, John (Longford, S.)Smith, Albert (Lancs., Clitheroe)TELLERS FOR THE NOES.—Mr. Gulland and Mr. G. Howard.
    Ponsonby, Arthur A. W. H.Smyth, Thomas F. (Leitrim, S.)
    Price, C. E. (Edinburgh, Central)Strauss, Edward A. (Southwark, West)

    Question, "That the Clause stand part of the Bill," put, and agreed to.

    Question, "That Clause 3 ( Title of Bill) stand part of the Bill," put, and agreed to.

    New Clause—(Deductions In Respect Of Expenses Involved In Earning Salary, Etc)

    "(1) Where the Treasury are satisfied with respect to any class of persons in receipt of any salary, fees, or emoluments payable out of the public revenue that such persons are obliged to lay out and expend money wholly, exclusively, and necessarily in the performance of the duties in respect of which such salary, fees, or emoluments are payable, the Treasury may fix such sum as in their opinion represents a fair equivalent of the average annual amount laid out and expended as aforesaid by persons of that class, and in assessing the Income Tax on the salary, fees, or emoluments of persons of that class, there shall be deducted from the amount thereof the sums so fixed by the Treasury."

    Clause brought up, and read the first time.

    I beg to move the Clause in this form, which will bring it within the Rules of Order, and not deprive any person of any right to which he might be entitled.

    Question proposed, "That the Clause be read a second time."

    This Clause is really the result of an endeavour to make special legislation in favour of Members of Par- liament. In the first place, there was to be a uniform deduction of £100 from the salaries of Members of Parliament, and I pointed out that that was not authorised by any provision in any Statute. At first the right hon. Gentleman combated that proposition, and referred me to various Acts of Parliament. He is now driven to the conclusion that this was a wholly un-authorised and illegal privilege to be conferred on Members of Parliament. He now proposes to give the Treasury this dispensing power set forth in the Clause. Personally, I am not quite sure that if Members of Parliament receive this benefit, it should not be extended to any class, for certainly it would be a monstrons injustice if it were not extended to every class. Members of Parliament are now to have it both ways. If their expenses are less than £100 they will get the benefit of the £100 deduction, and if they are more than £100 then they claim on what they have actually spent. But how are the Treasury going to give this privilege to Members of Parliament without extending it to every other Civil servant in the Kingdom? I say it would be a monstrous and outrageous thing if they did not extend a similar provision to all other Civil servants. On that ground, indeed, I do not think I shall raise any objection to this Clause. I think it is such that the Treasury either must exercise it in no case or must exercise it in every case.

    I do think this is an illustration of the dangerous pitfalls which beset us when there is an endeavour to make special legislation in our own favour. If the same thing were contemplated in regard to any class of Civil servant, or officers of the House, or even the reporters in the Gallery, or the clerks of this House, it is doubtful whether such a privilege would have been granted. But simply because it was found inconvenient or too much trouble for Members of Parliament to make out their return like any other subjects of His Majesty, first of all it was sought to strain the law in their favour, and then to alter it when it was found that it could not be so strained. It is a wholly vicious principle, and whatever may be thought now about the payment of Members, whether it is right or wrong, it was done in a wrong way; it was done by mere Resolution, indefinite, vague and unintelligible. Yet the proposal of the right hon. Gentleman in this Clause I really think, after all, is harmless and useless, and on that ground I do not intend to oppose it. I do hope, however, that the Treasury will exercise their powers in the matter quite impartially and not merely confine the privilege to Members of Parliament, but to extend it to all Civil servants. At present none but. Members of Parliament have the right to deduct personal expenses. Directors of companies, clerks who go to the city, or anyone who has to go to a particular place to carry on his business, have not the same privilege which it is proposed to give to Members of Parliament. If the Clause is to be passed in its present form, I think it would be unjust if the Treasury extended the privilege to Members of Parliament alone. Either they should extend it to none or extend it to all.

    I should like a little further explantion of this Clause in order to see what it really means. It refers to "any salary, fees, or emoluments, payable out of the public revenue." Does that apply to soldiers and sailors, and to all Civil servants? If it does, then the Civil servant, the soldier, the sailor, may, as well as the Member of Parliament, deduct a certain specific sum from their income, laid down as expended "exclusively and necessarily in the performance of the duties in respect of which such salary, fees, or emoluments are payable, etc.," I want to know what justification there is for this proposal. We all know perfectly well that it only arises from the fact that the Chancellor of the Exchequer put an illegal interpretation on the Income Tax Act in order that a certain sum should be deducted in respect of expenses of Members of Parliament. If it is done in that case, I do not think it is fair either to exclude part of the salary paid to any Civil servant, or any military or naval officer. Why should Civil servants and those who are paid by the Crown receive more favourable treatment than other classes of individuals? There has been no justification offered for the Clause. If this Clause means what I think it means I shall certainly vote against it, and if it only means to refer to the salaries of Members of Parliament I shall vote against it with even greater vigour, because I see no justification for special treatment of Members of Parliament. I believe it is quite unnecessary to introduce it whichever way you look at it.

    The hon Member may perhaps be interested and pleased to know that this Clause is in order to regularise an order which was made by Lord St. Aldwyn when he was Chancellor of the Exchequer with reference, not to Members of Parliament, but to revising barristers, and also to regularise a proceeding with regard to another class which I mentioned on a previous occasion, and which the hon. and learned Gentleman may recollect.

    The other case mentioned by the right hon. Gentleman was the case of Army and Navy officers.

    The Public Accounts Committee came to the conclusion that both ought to be regularised and this Clause has been drawn to regularise the case of officers, revising barristers, and Members of Parliament as-well. The hon. and learned Gentleman referred to Civil servants. Whenever they are travelling on business their expenses are paid. They do not pay out of their own pockets, and, therefore, this does not apply. If Civil servants run down to Yorkshire or the North of England or Ireland in connection with their business their expenses are paid. In the other case, the servant of the country has got to pay expenses out of his own pocket, and all we say is that those should be deducted out of Income Tax. The hon. and learned Gentleman says he has no objection if this is extended to other people. The Clause is not only for Members of Parliament, but is one of general application. It gives the Treasury power to do it in every case just on the same basis as that of those, to which I have referred.

    The Clause refers not to travelling expenses but to any money expended wholly, exclusively and necessarily for the purpose of their duties. Surely that refers to more than travelling expenses, and could it not be held to refer to a Member for Parliament or a Civil servant taking a house in London? To the plain, ordinary layman the Clause seems to bring in more than travelling expenses, and I suggest, if there is any doubt about the matter, that the words "travelling expenses" ought to be put in. I really think the definition as it is is too wide, and that the Government ought to alter it.

    I would like to know what would be the effect of the words "where the Treasury are satisfied." We had similar words in the Revenue Bill, and we were told they were subject to appeal in a Court of Law. This is a very important point. Do these words in an Act of Parliament entitle the subject to question the decision of the Treasury in a Court of Law?

    Even now I should say that the decision of the Treasury can be challenged on a point of law.

    It can. The subject can challenge the decision in a Court of Law, and many cases have been challenged in a Court of Law. On this very issue there have been some very interesting cases on the point of law, and the subject is entitled, and it has been done in many cases, and I should say it can be done in this as in other cases.

    May I point out what a tremendous door this opens to litigation? This Clause has never existed before, and nothing in the nature of it has ever existed. It simply is, I understand, to regularise primarily the allowance made to Members of Parliament, and certain other small exemptions which have previously been granted. Therefore, instead of this being allowed as it previously was, merely administratively in special cases, it is now, owing to the action of the Chancellor of the Exchequer in extending the allowance to Members of Parliament, to become statutory, or will become so if this Clause passes.

    I do not think the hon. and gallant Gentleman has quite realised the point. This does not alter the law except in one respect. It enables the Treasury in a case of that kind to fix the amount, instead of putting the subject o the trouble and expense of proving each item every year. That is all it does. It does not alter the general law.

    Clause read a second time, and added to the Bill.

    New Clause—(Provision To Allow Deductions In Respect Of Inherently Wasting Assets Existing Outside The United Kingdom For Purposes Of Income Tax)

    "For the purpose of enabling deductions from revenue receipts of expired capital outlay on inherently wasting assets existing outside the United Kingdom to be allowed by the additional Commissioners, claims in respect of those deductions shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits and gains of any trade, manufacture, adventure, or concern, and where such a deduction from revenue receipts is made, and has been made, from the commencement of the actual employment of the said inherently wasting assets in seeking profits, or during a period of not less than three years to the end of the usual financial year of the particular trade, manufacture, adventure, or concern last prior to the year of assessment, and provided such deduction is so made as to prevent the same being available as profits, the additional Commissioners in assessing those profits and gains shall make such allowances in respect of those claims as they think just and reasonable. For the purpose of this Section the term 'inherently wasting assets' means assets which necessarily waste in the process of seeking profits, provided always that such wasting assets are not the value of transferred rights to future profits or increase which would have been chargeable with Income Tax if no transfer of such rights had been made."

    Clause brought up, and read the first time.

    I beg to move, "That the Clause be read a second time."

    This Clause refers to an allowance for deduction in respect of inherently wasting assets. As time has gone on, I think those responsible for the finances of the country have gradually come to realise that there is a very serious grievance raised by this question. I remember the Chancellor of the Duchy of Lancaster saying that he really agreed that some exemption in respect of wasting assets ought to be granted, and last year the Chancellor of the Exchequer said, in answer to a Clause slightly different from this, that there really was no answer at all in justice to the Clause, and that the only answer that could be made was the one he made, namely, that by keeping the law as it stands at present, he was enabled to gather a very large sum of revenue, and that if the alteration suggested were made, he would lose a sum for which he was advised he would have to make no less provision than £2,000,000 per year. In fact, without meaning any offence, I may say his answer was the tyrant's plea, the plea of necessity. I may say I am grateful to the Chancellor for having given me the opportunity of placing before him some of the material and facts which lead me once more to move this Clause, and which has given me and those concerned with me in the interests of this Clause, the opportunity of discussing the matter with him and for that I desire to thank him. The point I want to bring forward now is this. It is not merely injustice to the subject that presses this Clause, but it is also in the interests of the Chancellor himself, because in the particular case which would be covered by this Clause he is at present, upon the information which I have got, losing revenue, and serious revenue annually. The Clause is drawn in accordance with Clauses which are to be found in the Finance Act of 1907, which enabled the Assistant Commissioners to allow exemptions in certain cases where a settled policy is adopted by those who seek to bring themselves within the Clause. It is only where a settled policy is adopted that any exemption can be paid, and it is only in very special circumstances that the particular exemption that this Clause would provide for could be granted.

    8.0 P.M.

    Let me give an illustration. We all know that there are a number of so-called wasting assets. If a coalfield is bought, and so much of the coal is extracted from the ground and sold, then by that amount the actual value of the asset belonging to the company or individual is diminished. So it is also in the simple case of the nitrate beds at Chili, which used to be worked very largely by English companies. Nitrates are minerals and easily measured, so that you can ascertain how long it would take to work a nitrate bed. Let me assume a nitrate bed is bought for £100,000, and that it is determined that you work it out in a period of ten years, using one-tenth each year, then in ten years the whole thing is exhausted. If the company adopt what would be considered the only sensible, and I might almost say the only honourable, course of providing that a certain sum should be written off their profit to meet the actual loss in the working of the year off the nitrate, that sum is still charged to Income Tax, and they have to pay 1cm. the gross receipts in the year. They do not pay on the actual estimated net profits. I have got here a simple case provided in recent years in which the company made a gross profit of £19,000. In the course of the working during the year it consumed a portion of the nitrate bed which necessitated placing no less than £10,000 to the depreciation account. The result was that after having provided for this depreciation the net profit for the year was only £3,800. One would have supposed that in the ordinary course the company would have paid Income Tax on £3,800. Not at all. Income Tax is a statutory charge on gross trading profits, and Income Tax was charged upon, not £3,800, but £19,000. Any shareholders who had to consider their interests would have said that if the directors had sought to treat the gross profit as profit and had made no allowance for depreciation, they were not conducting the company on honourable lines. Any company which had proper regard for real finance would make provisions for depreciation. The Income Tax Acts as they stand provide otherwise. They charge Income Tax on the gross trading profit, and do not allow for depreciation account in the case of inherently wasting assets. The effect is that companies which have hitherto registered in England, with English capital, and subject to other revenue laws, such as Stamp Duties and so on, find it too expensive now to register in England. They find that the Income Tax, which is nominally 1s. 2d., is in effect sometimes between 4s. and 5s. in the £. The result is that they are ceasing to be registered here, and the Chancellor of the Exchequer loses the revenue which he would otherwise obtain from the Stamp Duties on their registered capital, on the ordinary transfer of shares, and so forth, which undoubtedly in companies of large capital amount to no small figure.

    I have had an opportunity of calling the attention of the Chancellor of the Exchequer to the circumstances of this particular industry. I may say that it is an industry with which I have no possible interest myself, direct or indirect. I have brought the matter up merely because it is one of those injustices which I consider ought to be ventilated in this House and upon which I hope both sides are approximating to something like agreement. Under the present system of working nitrate beds it would be fair to say that the average life of a company is little more than fifteen years. Years ago when the machinery was not so complete or so effective the companies worked their beds more slowly; now, with improved machinery, they work them at a greater rate. They also have an incentive to greater industry in the fear lest other chemical resources should be provided to compete with them. If fifteen years be the life of a nitrate company, if they make provision for the depreciation of their capital, and if it is found that they cease now to register themselves in England because of the operation of the Income Tax, am I not right in pressing this matter once more on the Chancellor of the Exchequer? It is sometimes said that if any relief were given it would be taken advantage of by a great many other industries than those which I have in mind. I have endeavoured to make myself acquainted with the system of finance pursued in the gold mines of South Africa, not many of which I believe are now registered in England, and in some other companies. My researches rather lead to the conclusion that, whether you turn to South Africa, to Chili, or to Canada, the number of companies which would previously have registered here, but now cease to do so, is largely increasing, the fear of the heavy Income Tax having proved a real and effective deterrent. In order to guard against the danger to which I have referred, I have drawn the Clause in the form in which it stands on the Paper.

    I have provided that no exemptions shall be allowed in respect of a deduction for inherently wasting assets unless it is the original policy adopted by the company or has been adhered to during a period of three years. The Clause also provides that in no case shall any company be entitled to an exemption unless and until it has placed a sum to depreciation account beyond any possibility of recall for the purpose of dividends in after years which may be less satisfactory from the trading point of view. The real difficulty arises from the fact that the Income Tax Acts were passed long before Joint Stock enterprise had reached its present dimensions. They have never been much modified or altered, and the present system of collecting Income Tax upon the gross trading profits is really an anomaly which ought to have passed away in these cases. A certain number of exemptions have been allowed. There is now an allowance of 5 per cent. in respect of plant and machinery. That was obtained under the Act of 1878. Under the Act of 1894 there is an allowance of one-sixth in respect of repairs to buildings. The Act of 1907 established that the life of ships should be taken at twenty-five years and granted an allowance of 4 per cent. on their prime cost. I am putting forward the case that this particular industry is also entitled to an exemption. It will be said that there are many other inherently wasting assets. One which is commonly put forward, but which in my opinion is not a wasting asset, is that of a leasehold. When a man buys a lease for a number of years what he buys for a lump sum is the right to enjoy something which the seller has, and on which the seller has to pay year by year his quota to the Exchequer. The fact that the purchaser pays down a lump sum does not prevent the subject matter of the purchase from being something which originally was liable year by year to pay its quota to the Exchequer, and it seems to me that no true exemption can be claimed in respect to depreciation.

    In the case of assets outside the United Kingdom there is no liability to make any contribution to the Exchequer on the part of the foreigner who sells to an Englishman. The only right of the Chancellor of the Exchequer arises when the Englishman or the English company has purchased some foreign asset, and there is a real distinction between the case of a purchase held and worked entirely by citizens of this country, whether it be a coalfield or a leasehold, and cases where foreigners sell wasting assets. It is only when the Englishman has paid his money and begun to work his assets that the Chancellor of the Exchequer has any right to make any demand for Income Tax. I have drawn the Clause in a form in which the relief given would be confined within narrow limits, and only granted to those who had seriously made out a good case for exemption. It applies only to assets existing outside the United Kingdom, thereby preventing the possibility of its being said that I am releasing so large an amount as was indicated by the Chancellor of the Exchequer last year. I have drawn the Clause in a manner in which the exemption can only be claimed by those who have made this policy of providing for wasting assets part of their regular system, and have placed to depreciation account a sum which cannot thereafter be possibly used for distribution amongst the shareholders. That limits the scope of the Clause. I have asked the Chancellor of the Exchequer to go a bit further than he did last year. He said last year—and I think I fairly remember what he did say—that practically justice was on my side, but that the system of the present time worked sufficiently well from his point of view, and that of the large revenue that was collected. If justice is on my side the injustice is worse on a number of persons. If injustice is to be continued, the injustice ought to be narrowed as much as possible. I claim that at the present time, in the interests of the business of the Chancellor of the Exchequer himself, in the interest of his own collection of revenue, that it is advisable to accept this Clause. If no exemption is given to wasting assets as I suggest, so long will companies fail to come.

    I have been told, on information which I can safely pass on to the Chancellor of the Exchequer, that a very large company with a capital of £800,000 ultimately registered itself in Chili because they were unable to face the English difficulties. Another case in which the circumstances were of much the same character with a capital of much the same amount was that of a company which will not come to this country because of the severity of the Income Tax. If this exemption could be granted, and if the penalties of the Income Tax could be mitigated, we should once more have the companies ready to come to London—which, after all, is the most satisfactory place from many points of view for their purposes—where they would be liable, and rightly liable, to contribute to other forms of taxation, the Stamp Duties and others. I apologise to the Committee for having explained this matter at some length, but the Clause is not one which explains itself at first sight. I press the Chancellor of the Exchequer to deal with this matter. I have ventured to make a somewhat long draught upon the patience of the Committee. Let me add this one word in closing. If we insist, as we do, both by practice and in the Courts, that men shall conduct their business on the methods of sound finance, it is very unfortunate that the present system of Income Tax should be such as to give an incentive to unsound finance and to prevent the proper provision being made for wasting assets. We should so far as we possibly can bring the system of Income Tax into conformity with sound, genuine, honest finance. If the Chancellor of the Exchequer will accept this Clause he will have made a contribution to that end. At the same time, having regard to the limited scope of the Amendment, and the present difficulties of the companies coming over here, he will find that his revenue, instead of being diminished, will in fact be increased.

    Every Chancellor of the Exchequer is confronted with Amendments similar to this when he gets into Committee on the Finance Bill. Ever since I have been in the House, I think, there has been a Motion of this kind pressed upon the Government. The hon. and learned Gentleman has put his case with lucidity and as cogently as it possibly could be put. He has also this advantage over previous Amendments of the same character; he has limited this one in its scope. If it were possible to accept it in this form, without any serious consequences, I agree that it would not be very easy to resist, because, for instance, he put a strong case in respect to the nitrate company. Once, however, you begin to embark upon this course—once the Treasury accept this distinction and import it into the Finance Bill of the year in reference to companies outside, no one in this House believes it possible to stop short in its application to companies inside the United Kingdom. The hon. Member stated that last year I acknowledged the justice of the case he was making. He suggested that was an admission on my part of the injustice of the present law. But it is not so much a question of justice or injustice as of the utter impossibility or impracticability of establishing a rule which will enable you to draw a distinction between what are wasting assets and what are not. If you say a wasting asset is something which is bound to come to a termination as a profit-bearing enterprise within a certain term of years, more or less defined, then the only asset in this country which is not a wasting asset is land. Any business or industrial enterprise is bound to be a wasting asset. Take, for instance, a business which depends upon goodwill, and which really very often is the case of either depending upon the locality being one which is going to remain, say, fashionable for that business, or which depends upon the life of some person who has made or developed the business. The moment he vanishes you can never be certain that you will get an equally good man to follow.

    When you are investing your money in a business of that sort, you are investing your money in a business which is a wasting business to that extent. The same thing applies to collieries. The hon. and learned Member has pointed out the case of the goldfields in Africa, India, and elsewhere. Those are wasting assets; but in none of those cases do the companies themselves, in their balance-sheet, arrange their affairs as if that business were coming to an end. The hon. and learned Gentleman knows very well they do not set aside any sum to reserve in order to provide against the possibility of the enterprise coining to an end. They distribute the whole of the dividend. The only sum of money they do set aside is for purposes which involve acknowledged depreciation. There rarely is anything set aside in contemplation of the possibility of the termination of the business for one reason or another. It is extremely difficult for that reason to draw a line between what is a wasting asset and what is not. If you draw a hard and fast line, the only thing that remains is land, which is the one thing that does not waste. I am not sure you could say the same with regard to Consols, because you will find, before the present Government came into power, there was a very considerable drop in Consols, and that drop has been going on owing to reasons which are not really applicable to this country alone, but affect Europe. As a matter of fact the balance is redressed and adjusted in the Death Duties. When you take the capital value of your assets and when you are coming to assess their capital value you take the possibility of wastage into account, and often in that way the balance is redressed. Take the amount of the shares. The value of these shares is fixed on the Stock Exchange. The contingency which the hon. and learned Gentleman put before the House now was that when you come to Death Duties the wasting character of the asset is an important element in arriving at the duties, and I heard the hon. and learned Gentleman many times treating the Death Duties as if they were only a kind of deferred Income Tax. If you do it on that basis in respect of a most substantial part of your Income Tax, the wasting character of the asset is taken into account.

    The hon. and learned Gentleman made a very strong case in respect of this particular kind of security. He introduced a deputation to me the other day upon the subject, and a very strong factor was that the different speakers accentuated the view which the hon. and learned Member very clearly stated, that it would take twenty-five or thirty years to exhaust these mines, but that is now done in about fifteen years. The reason of that is that some other commodity may be invented or discovered which would prove a serious rival to the nitrate deposits of the West Coast of America, and, therefore, might bring their profitable character to an untimely end. That is an element of a totally new character that makes their profits exist for a shorter time than before. I think the answer to that is the answer which can be given in respect of a leasehold, that when you purchase a leasehold you take into account the number of years. The same thing applies to the nitrate fields. If the nitrate fields would last for forty or fifty years they would be three times as valuable as something that would come to an end and be exhausted in fifteen years.

    If I am not inconveniencing the Chancellor of the Exchequer, I should like to say that, of course, the nitrates are based upon the value per quintal. You may work it at a slower or quicker rate; that is not so in the case of a lease.

    It is only another way of putting it. If you could go down another 10 ft. or 20 ft. for more quintals, it would take more time to exhaust. It is the same thing. It takes a certain number of years to exhaust. You do not know how long it will take to exhaust, and, therefore, it is no use making a calculation as to the number of years in which you waste it. With regard to nitrate deposits you know the area but you do not know the quality or the depth of the deposits in the area. You find in certain places a very rich deposit and good depth. In another part of the same field, a few yards beyond, you may find a very good deposit but not of the same quality. I experienced in dealing with men who had a knowledge first hand they could not give a fair average of the life time of these nitrate deposits. My own idea is that once you introduced this element in this new Clause, you cannot draw the line. You may say some of the nitrates will come to an end in twenty years, but the West Coast of America cannot possibly accept that line. The hon. and learned Gentleman put a very strong case. I consulted with my advisers, and they were very alarmed, and they warned me very strongly against giving way upon this question. It seems only a small thing, but it would cost another 1d. on the Income Tax, and, therefore, I am afraid that I shall have to follow the example of my predecessors for the last forty or fifty years, because I am afraid the hon. and learned Gentleman's suggestion is a dangerous experiment, and one that I could not accept.

    Question, "That the Clause be read a second time," put, and negatived.

    New Clause—(Exemption Under 10 Edward Vii C 8, Section 69)

    "In the case of the additional exemption from Income Tax under Section 69 of the Finance (1909–10) Act, 1910, there shall be no limit to the amount of the exemption for outlay shown to have been incurred in accordance with that Section."

    Clause brought up, and read the first time.

    I beg to move, "That the Clause be read a second time."

    I hope the Chancellor of the Exchequer will not treat this also as a hardy annual. It is three years since such a Clause has been moved, and the promises made by the Chancellor of the Exchequer from time to time justify me in hoping that he will accept this Clause on this occasion. The Clause, shortly, proposes to eliminate the 25 per cent. which was established when the Chancellor of the Exchequer made this concession to landowners to exempt from Income Tax their expenditure on repairs to cottages and buildings. I think when the Chancellor of the Exchequer gave that—I will not call it a concession, it was merely an act of justice—to the landowners, the reason he imposed that limit was that he had an enormous deficit to meet that year, and he did not think he could properly risk a liability of more than half a million at the time. We all know that that limit has not been anything like reached in the years during which that exemption was made. In the first year only £5,000 was claimed under the Section. In the next year £49,000, and last year. when it was thought it might be considerably more, because it was the last year during which arrears of rebate could be claimed on the whole three years, it was only £68,000, instead of the £500,000 which the Chancellor of the Exchequer expected. Perhaps I might be allowed to remind the Committee of the words used by the Chancellor of the Exchequer at that time. In the Debate on the Second Reading of the Finance Act he said:—
    "If it is found that the £500,000 is not altogether disposed of by this concession, the Government will probably be in a position, at any rate next year, to increase the maximum. If there is any surplus, we propose to increase the maximum."
    On another occasion he said:—
    It must be for the first year experimental. Next year we may have something to spare and we may increase the allowance, may be up to 30 per cent., if the £500,000 runs to that extent, to the improving landowner."
    As recently as the Second Reading Debate on this Bill, in reply to an interruption by my hon. Friend the Member for Oswestry, the Chancellor of the Exchequer said:—
    "I think there is a good deal to be said for that point. Inasmuch as £500,000 is not spent, I do not see there can he ally reason against raising the maximum. I will give further consideration to the point, and, if the hon. Member will put down an Amendment, I will see what we can do in the course of the Debates on this Bill."
    That is as much encouragement as a Member ever gets in regard to an Amendment or a new Clause. I think that justifies me in supposing that the Chancellor of the Exchequer may accept this Clause. Apart from the exigencies of the Budget in the year in which this concession was first made, I can see no reason for any limit, provided that the Commissioners are satisfied of the proofs of what has been spent in repairs by landowners. The limit, I think, acts especially hardly upon small estates, because on large estates I do not suppose the percentage spent upon repairs varies very much from year to year, but rather equalises itself. There may be a large expenditure on one farm and less on another. On small estates of two or three or half a dozen farms there may be no great expense in one year, but another year there may be some big roof to be entirely renewed Yet, though a landlord may have a long series of heavy outlays, he can only claim 25 per cent. I know one estate upon which during eleven years nearly the whole income was put back into the estate, not to increase rents, but to maintain it, and having been put in first-rate order the annual outlay still runs to the 25 per cent. which is allowed to be deducted. That percentage of 25 per cent. is only the normal expenditure necessary to maintain the estate in first-class order when it already is in first-class order to begin with. Where a landlord sets to work to spend a large sum upon his estate he is penalised by being allowed only to make this 25 per cent. reduction. I think landowners are the only class who are treated in that way, and practically they are found guilty until they can prove themselves innocent—they are held liable until they can prove the contrary.

    I think the best solution is that which the hon. Member for Tewkesbury (Mr. Hicks Beach) proposes in a later Clause which places landowners under Schedule D, for they would then be treated like ordinary tradesmen and shop-keepers, and could invite the Commissioners to estimate the amount upon which Income Tax is payable, and that would be a considerable advantage. They might not accept the estimate of the Commissioners unless it is below what they are actually receiving, and if it exceeds the amount, then they have the power of submitting their accounts and paying exactly that which is due. On the Second Reading of this Bill the Chancellor of the Exchequer claimed that he had already done all that was necessary for the landowner, and he rather jeered at them because they did not take advantage of the concession he had made. I cannot think of anybody else who would be entitled to say, "I am justified in taking your money if you are not careful enough to see that I do not take too much." It should be quite as much the duty of the Chancellor, and those who work under him, to see that the subject is not overcharged, or wrongly charged, as it is to see that he pays that which he ought to pay, and the Chancellor of the Exchequer has no right to say it is the landowners' fault if they have not taken advantage of the concessions he has made. The Central Land Association is particularly associated with this question, and under the secretaryship of the hon. Member for Wilton they first brought this matter before the notice of the Chancellor of the Exchequer, and that body has endeavoured to bring it to the notice of landowners. That, however, is not their business; it ought to be the business of the State, when making the concession, to see that the merits of it, and the opportunities offered, are brought home to those whom it is intended to benefit. I hope the Attorney-General will see his way to accept this Clause.

    I recognise the spirit in which the hon. Member has moved this Amendment, and I quite see the force of the observations that he has made. It must be borne in mind that the restriction this Amendment would remove when introduced by the Chancellor of the Exchequer was a great improvement on the condition of things that had existed hitherto. I know the view of my right hon. Friend on this point up to the last moment, and his difficulty is that the amount of the deductions which are claimed under this concession are amounting to more year by year and are increasing from the point of view presented to him more rapidly than hitherto. It is a little too early to say at what stage you should increase this concession, which was only started in 1910. It is a little difficult to say at what stage you can remove a restriction altogether, and it must be remembered that what you remove you cannot very well replace, and therefore it is very difficult to say what amount or what further extensions should be made until we have had a little more experience of the working of the Act. We have only had three years' experience; indeed, I doubt whether we have had more than two, because the first year it scarcely seems to have been known. Although I do not far a moment want it to be understood that the Chancellor of the Exchequer recedes in the slightest degree from what he has said, I desire to say that we must wait still a little longer. It might very usefully form the subject of discussion when we come to consider the Revenue Bill next Session. This is not an answer in principle, I agree, to the arguments of the hon. Member, but it is a practical answer. There is nothing a Chancellor of the Exchequer ought to guard himself against more than the giving away of revenue, and the removing of restrictions of this character might have the effect of giving away revenue beyond the concession which he attempts in the first instance to make. Therefore, all I would ask the hon. Gentleman to bear in mind is that at this moment we cannot give effect to the view which he has put forward and which we accept.

    It is very unfortunate that the Chancellor of the Exchequer cannot be here, though I quite understand the reason. This particular new Clause has been put upon the Paper by my hon. Friend on the distinct and direct invitation of the Chancellor of the Exchequer, who used words which are usually accepted in this House as a pledge to deal with the matter. He said:—

    "I certainly will give further consideration to that point, and, if the hon. Member will put down an Amendment to that effect, I will see what can be done in the course of the Debates on this Bill."
    That is going very near to giving a pledge to do something. The Attorney-General has taken exactly an opposite line to that taken by the Chancellor of the Exchequer. It will be in the recollection of those in the House than when this matter was discussed on the Second Reading of the Finance Bill the Chancellor of the Exchequer took exactly the opposite view and chaffed us on this side of the House because the claims had been so ridiculously small. That was his whole point. Now the Attorney-General tells us that he cannot accept this Amendment because the sum is growing so fast that the danger of exceeding the limit of £500,000 is great. That is the only reason the Attorney-General could give us. The Chancellor of the Exchequer on the Second Reading told us that the sum was so ridiculously small that it was not worth considering, and he chaffed us for not having asked for more and invited us to put down an Amendment, and now the Attorney-General refuses the Amendment because the sum is growing so fast that although it is now only £68,000, it is likely to exceed £500,000. There is another very material point. The Attorney-General told us that he hoped a Clause might be introduced in the Revenue Bill next year.

    I quite agree. The right hon. Gentleman said that the matter could be raised on the Revenue Bill. I have no doubt that he was present in the House a short time ago when we had a definite assurance from the Government that the Revenue Bill and the Committee stage of it would be brought on at an early period next Session. We have also been told that the Finance Bill will be taken later. The Attorney-General said that the Clause could be put down to the Revenue Bill, not that the Government undertook to put it down.

    Will the Attorney-General give me an assurance that the Clause will be in order on the Revenue Bill?

    At the moment I said it I certainly thought that it would be in order, but the very fact that the hon. Gentleman raises the point shows there is a doubt, and of course the Rules of Order are not for me to decide. It must not be taken that I have given any pledge that it will be accepted.

    Will the right hon. and learned Gentleman give us his opinion that it could be introduced in the Revenue Bill? That would be of great value. I take it that having said we could introduce it in the Revenue Bill he himself is of that opinion.

    Of course, when I was speaking I thought that the matter could be discussed on the Revenue Bill, and all I can say is that is my view at present. I certainly am not going to give any pledge in the matter. I know how technical these matters are. Various matters have to be considered before you can say whether a thing is in order or not, but, as far as I can say at present, I think that it would be in order, but I limit it to that.

    I quite realise that the Attorney-General cannot decide a point of Order himself and that it must be decided by the Chair, but still it does carry great weight with us that the Attorney-General has given it as his opinion that a Clause to this effect can be introduced in the Revenue Bill. He will see that the point is very material with regard to the pledges the Government have given, because it makes a very great difference to my hon. Friend whether he can raise this matter on the Revenue Bill early next Session or whether he will be relegated to the Finance Bill in the last week of the Session. The issue is really one with which the Government do stand pledged to deal. The question of the five years' average appears to me to have been rather lost sight of when the Chancellor of the Exchequer spoke on the Second Reading, because he complained that very few claims had been sent in. Claims on an average of five years can be made more immediately in the case of large estates than in the case of small estates, because on large estates the accounts are carefully kept, and the labour is well defined to different objects. The first year this new concession came into operation the owners of large estates would, in many cases, be able to make claims on the accounts kept at the estate office, but in the case of small estates, where a man has a job here and a job there, doing repairs to an outbuilding one day and perhaps some work in the house another day, and where no regular accounts are kept showing exactly where different men were working at different times, it would take five years before a five years' average could be secured in order to make a claim. The Attorney-General will agree that the kind of people who would make these claims would be very scrupulous only to make a claim on sound evidence. I willingly admit that the Treasury, so far as my experience goes, have interpreted this Clause in a liberal spirit. They have not attempted to question accounts which, on the face of them, were genuine, and they have not attempted to ask questions which would make it difficult or impossible for owners to make their claims.

    The Treasury have dealt with this in a perfectly fair spirit. Where the owner has been able to show that he has expended the money and where he has been able definitely to assert that he has spent it on repairs for the estate, then there has not been the kind of inquiry whether it has been spent on this particular cottage or that. But many of the owners of small estates have not been able to show what their expenditure on repairs and maintenance has been over the whole estate, and probably they will not be able to do that for a period of another two years, when the five years will have expired after the passing of the Act, and that is a reason, I believe, why fewer claims have been sent in than would otherwise have been the case. I must say I expected, after the pledges given by the Chancellor of the Exchequer, we should have had some definite concession, at any rate within the limit of the £500,000 which the Chancellor of the Exchequer pledged himself to devote to this purpose. I am bound to say, although we realise that the first concession was in reality a promise which entitled my hon. Friends behind me, and which entitled me to press him to carry out the original pledge, we are only getting now a sum of £68,500, and I hope when the next Revenue Bill comes in that will all be changed. I do not know whether my hon. Friend proposes to press this to a Division; if he does so, I shall support him in the Lobby as a protest. I think he will be perfectly justified in going to a Division, but in any case, when the Revenue Bill comes in next year, I hope the Chancellor of the Exchequer will make up his mind what he proposes to do, and will carry out his pledge.

    I support the Amendment. I have another Clause on the Paper which I prefer, but now that the subject has been raised I do not think the Committee will care to have another discussion on a similar Clause; therefore, I shall give my support to my hon. Friend's Amendment. It is only as a matter of equity and not as a concession at all that I advocate this. Income Tax is supposed to be levied on people in accordance with their income. Every person gets an income of a certain sort.

    This new Clause deals only with the limit of exemption. Is the hon. Member in order in dealing with the question whether the Income Tax corresponds with the income, and whether the Schedule A should be changed to Schedule D.

    9.0 P.M.

    I was saying that the Income Tax is supposed to be levied on the amount people may have received, and therefore I, for one, see no reason why it should differ between income derived from land and income derived from anything else. This Clause at present under discussion does not entirely carry that out. I support it because it goes a certain extent in that direction. I, for one, fail to see why a person who derived income from landed property should not be able to make a return under Schedule D in the same way as people carrying on other business make returns. The person you want to encourage is surely the person who spends money on his estate, and who does his best during his ownership to keep the estate in good condition and repair. A person must spend money in order to do that, and he should be encouraged, but under the present conditions, you do exactly the reverse. You penalise the man who spends money on his estate, and he gets nothing more in the way of benefit than the person who spends nothing. I think that should be rectified. The House will remember that in 1909–10 the Chancellor of the Exchequer put aside £500,000 in order to grant the concession he then made, and I venture to suggest that the difficulty which has been experienced in making out the return in accordance with the proposals of the Government is responsible for so few claims having been sent in.

    Personally, I should have been quite content if the Chancellor of the Exchequer had seen his way to accept the new Clause of my hon. Friend only on condition that the total relief granted by the Exchequer should not exceed £500,000. I believe that would have met, to a very considerable extent, the cases of the people who did take the trouble to keep those accurate accounts demanded by the Treasury in order to show that they had spent more than the allowance of 25 per cent. on the upkeep of their estates. But, unfortunately, the Treasury have not seen their way to do this; they have only promised to give the matter due consideration next year if the subject is raised on the Revenue Bill. We have heard that sort of promise before, without any very material results, and I must confess, until we get something more satisfactory from the Government, I shall feel justified in urging my hon. Friend to take a Division on his Amendment. It is, I repeat, not a matter of concession. All we are asking for is that a man should receive some sort of an allowance in proportion to the amount of income which he spends on the necessary upkeep and repair of his estate. It must be an advantage to the country that landowners should do this, and it is in order to encourage them in so doing that I support my hon. Friend.

    I feel I ought not to give a silent vote on this subject, because the matter was first raised by the Central Land Association at a time when I had the honour of being the secretary of that body, acting under the guidance of Lord Onslow, then chairman of the executive committee. In that capacity, and in conjunction with the Surveyors' Institute, the Land Agents' Society, and the Ecclesiastical Commissioners—I hope hon. Gentlemen opposite will agree these are very fair bodies to go to in order to obtain facts, because they represent the greater part of agricultural land in this country—

    And this is a question which only affects the agricultural land-owning interest directly. As a result of the returns obtained through these media without any sort of selection, I discovered that there was in effect on all well-managed estates in the country an average of something like 30 per cent. expended under these sub-heads in England and Wales, and an average of 40 per cent. expended in Scotland, where the expenses as compared with income are much greater than south of the border. A deputation went to the Chancellor of the Exchequer in 1909, and I am bound to say that he listened most courteously and sympathetically to the views we laid before him. He made an admission at that time that if he were to meet what he admitted to be the well-founded grievances of what he called good agricultural landowners, it would probably involve the Exchequer in a sum of about £3,000,000, which he did not then see his way, as Chancellor of Cle Exchequer, to afford. I do not think that is an overestimate. It was an estimate made by the Chancellor of the Exchequer on the advice of his own technical experts in the Inland Revenue. If it is not an overestimate, what is the fact? It is that agricultural landowners, as compared with other income receivers in the country, are being mulcted to the tune of £3,000,000 a year, which not only ought they not to pay, but by paying which they are in fact failing to keep up their estates in such a condition as hon. Gentlemen interested in the land on both sides would like to see those estates maintained.

    The £3,000,000 is an estimate made by the Chancellor of the Exchequer himself, after taking the advice of his own officials at Somerset House. After comparing a large number of these returns, which I did as secretary of the Central Land Association, I should think that if anything it is probably an underestimate rather than an overestimate of the amount. However, for our purposes to-day, it is not really material. The question really is whether landowners ought to be treated in a different way as regards their net incomes from any other class of the community. I go as far as to say, and I think everybody in the House will agree with me, that those who desire landowners to do their duty, both as regards their tenants and the farm labourers living on their estates, ought to do all in their power to remove their reasonable grievances. I am sure this is a reasonable grievance. Whatever may be said of most landowners as a class, and of most agricultural landowners in particular, they are receiving a very small return upon the capital invested in their properties. I do not think my statement will be disputed, when I suggest that 3 per cent. would be regarded as a rather high average of the return from agricultural land. Compare that with those who have money invested in other property and undertakings, such as cotton manufacturers, steel manufacturers and mine owners, who must be receiving, at any rate in these days of booming industry, anything from 15 per cent. to 20 per cent., who are being allowed these very deductions that we ask in the case of the landowners shall be allowed on their small incomes. Surely, it is an unanswerable case. I should like to see the proposal of the hon. Member for Tewkesbury (Mr. Hicks Beach) adopted in preference to that before the Committee. It is so obviously fair that if Schedule D were made to apply to incomes of all sorts, in every case what was the actual net income and nothing but it would come to be taxed, as in fact it ought to be taxed. There is one little difficulty in the machinery at our disposal to-day, which is that we have to pay the full amount of Income Tax under Schedule A, and we have to recover it back as best we can from the Exchequer. I do not know why landowners as a class should be put to this extreme inconvenience and trouble to which other owners of property are not put. I hope that some hon. Members from the other side of the House who are, or who profess to be, interested in the im- provement of agricultural conditions, particularly the lot of the agricultural labourer and his housing, will say a word in support of this Amendment.

    The hon. Member is so very reasonable that I believe he would acknowledge at once that if we made a change in the collection of Income Tax upon landed property, and changed it from Schedule A to Schedule B, or extended the limits, so that £3,000,000 a year less was calculated under Schedule A than at the present time, and if the landowners got the benefit of the £3,000,000, the value of their agricultural land would immediately rise by the capitalised amount of twenty years' purchase of the £3,000,000. The change in the taxation under Schedule A, if made in the way hon. Members opposite propose, would result in landowners benefiting to the extent of twenty years' purchase of £3,000,000 or thereabouts. It seems to me there is a great deal in all the arguments used on the other side. I am quite certain they honestly believe that it is to the advantage of the country that the landlord should spend a great deal of his gross income on repairs and improvements. With that we on these benches are in hearty agreement. What we say is that the incentive or inducement to improve ought to be given to landlords, but not at the expense of the rest of the community, and that the total amount which is raised under Schedule A at the present time from the landed property should be based not upon the improvements that the landlord makes, but upon the value of the land, whether he makes improvements or not. In that case the bad landlords would pay more, and the good landlords—those we want to encourage—will pay less. All those estates which are well improved would gain the £3,000,000 advantage. I doubt whether it is £3,000,000. I dare say it is £1,000,000. Good landowners would thereby receive the advantage, and the bad landowners, whom we want to discourage, would contribute to the benefit of the others, thus making the account square, so that the taxpayers as a whole would not suffer any additional burden.

    Does that mean that the hon. Member would base the Income Tax on the capital value? If he would, that is in direct contradiction to every other basis of Income Tax.

    That is my suggestion. Under Schedule A, Income Tax is levied upon the rental or rateable value. I suggest that it should be levied upon the capital value of the land instead of upon the property with the improvements. Thereby you would effect exactly those improvements the hon. Member for the Wilton Division (Mr. C. Bathurst) and the hon. Member for Tewkesbury (Mr. Hicks Beach) have advocated. You would encourage the man who improved his property, and at the same time avoid the pitfall of making a large present to the landed interest at the expense of the rest of the taxpayers of the country. You would effect an increase of employment, an increase of housing, and an increase of housing, and an increase in money well spent, and would not be making a present to the landowners. I submit to hon. Members opposite that if they will look at the question fairly, not from the point of view of the landlord interest, but from the point of view of the public interest, they will see it would be unfair to relieve one particular class, the landlord class, of this vast body of taxation, thereby increasing the value of their land, land which has been subject to Income Tax under Schedule A for over seventy years—it would be unfair to relieve them of the hereditary burden they have borne all those years at the expense of the rest of the taxpayers of the country. I regard all Amendments which relieve landlords at the expense of the rest of the taxpayers as being bad, although the intention of hon. Members opposite to encourage improving landlords is at bottom an excellent one. Hon. Members opposite really desire to see improving landlords encouraged—I am sure no hon. Members really want to help the bad landlord who starves his land from capital and is probably an absentee—why not then, not by putting Income Tax under Schedule B instead of Schedule A, put it on a sound foundation and call upon the owners of land to contribute under Schedule A of the Income Tax, not according to the use to which they actually put the land, but according to the use to which the land might be put?

    I cannot agree with the conclusion to which the hon. Member has arrived, but I agree with some of the arguments on which he has founded those conclusions. He seems to have admitted that landlords have a claim to be put upon Schedule D, instead of upon Schedule A.

    I understood, at any rate, that that was part of his argument, though he went on to say that by so doing you would add a great deal of material value to the landlord. I should like to put to him a concrete proposal that by the present system of taxation you are imposing a burden upon the landowners in the country which it is not quite fair that they should be asked to bear. I should like to ask the hon. Member whether he would not consider a little more carefully whether there is not something to be said upon the other side even on the lines of the argument which he has brought forward. I should like to remind the Committee of what was the object which the Chancellor of the Exchequer has in view, and which previous Chancellors of the Exchequer had had in view, in making this allowance which has been made under Schedule A. There is no doubt they realise that the owners of property under Schedule A had a claim to certain remissions of taxation under the Income Tax for the amount they were spending in the upkeep of their property, but they were also careful to try and avoid, so far as they could, any undue loss to the Exchequer, and, therefore, they made a limit, in the first place 12½ per cent. and later on 25 per cent., upon the amounts which were allowed to landowners under Schedule A. But the present Chancellor of the Exchequer, when he made the allowance of 25 per cent., made it perfectly clear that he was prepared to forego an amount of £500,000 a year to the Exchequer. There has not been anything like that amount spent by the Chancellor of the Exchequer in any one year under the 25 per cent. allowed, and I think we are entitled to ask why it is that when we were promised an allowance to meet the necessary repairs and upkeep which landowners ought to spend upon their properties, when he was prepared to allow £500,000 a year, whether we should not have, at any rate, a considerable extension of the limit which he is prepared to give for the purposes of these repairs. I welcome what was said by the hon. Member with regard to the encouragement which ought to be given to good landlords, to those who spend a considerable amount of their gross income upon the upkeep of their property; but if he is prepared to support in the Lobby those opinions which he has voiced, we ought to claim that he should go into our Lobby and support our Amendment, because there is no doubt that many a landlords does consider whether he shall do certain repairs and alterations and improvements one year or another, because he feels that he will have to pay an Income Tax of 1s. 2d., or it. may be 1s. 8d., upon the expenditure which he has incurred. If the hon. Member and his Friends really intend to do what they can to encourage landlords to spend as much money as they can on their property, I suggest that he should come and support us in the Lobby.

    I do not think the hon. Member (Mr. Wedgwood) quite understands the question. It is not a question as to whether Income Tax is right or wrong, but merely one of justice. Income Tax means a tax upon your income, and in every case that I know, except in the case of an owner of land, tax is levied upon the income that you receive. In the case of a landowner the tax is levied not upon the income that he receives, but upon a fictitious amount which he is supposed to receive, and all I understand my hon. Friend desires to do is to put the landlord in the same position as anyone else with regard to the payment of Income Tax. I do not agree with the hon. Member in his foible of a single tax, but I believe he is a fairminded person. I want him to divest his mind of any question about land and to look at the matter as it really is. His method of raising taxes may be better than this, but if you have an Income Tax it should be a tax upon income and not a tax upon something which you do not receive and which is not income. Under these circumstances I hope we shall have the hon. Member in the Lobby with us. Should he vote with us on this occasion, he will in no way be precluded from advocating a different system of taxation later on, but he will merely show that he is fairminded and wishes to put all people, even if they have the misfortune to own land, upon an equal footing with regard to the justice of their demands and the justice of the claims which are made upon them.

    I should not have risen to support the Clause if it had not been for the very disappointing reply the Attorney-General gave. I was in the House when the Chancellor of the Exchequer made the statement which has been referred to, and I certainly took it as being something very near a promise that something should be done in this direction. We are only asking that Income Tax under this heading should be deducted where income has been received, and if we are not going to be met in this way, speaking as a landowner myself who has endeavoured to do his best with the property entrusted to him, it is a very great discouragement to those who want to improve their property and erect dwelling-houses for the people who live on it. I have gone through this calculation and seen what I could get out of it on my own estate. The amount I got was very small in proportion to the expenditure, which I was only too ready to make and go on making to-day, though as far as deductions for Income Tax are concerned, they are only a mite in proportion to the expense one incurs. I think the Chancellor of the Exchequer, knowing this Clause was coining on, might have taken a little less time away from the House. There are other Clauses not so important to him, but this is a Clause on which he undoubtedly gave us an understanding that something would be done. We are only asking for something to be done in common fairness to those who are doing their best to improve their property, and the least he could have done would be to try and be here and give some explanation, because the Attorney-General has taken a line entirely different from what the Chancellor of the Exchequer took when it came up before. It is very hard to reconcile the two lines of argument, the Attorney-General's to-night and the Chancellor of the Exchequer's a few weeks ago, and it seems to me that because the Chancellor of the Exchequer knows he is in a difficulty he is not here, and it is a very unsatisfactory state of affairs, and I shall certainly join in the protest by voting against the Amendment.

    I should like to support the appeal my hon. Friend has made. We all recognise that the Chancellor of the Exchequer is but human, and is a very hard worker, but this is a case that concerns his honour very directly. The Chancellor of the Exchequer has now on three separate occasions given, not a pledge, because he is too clever a politician to commit himself to an absolute pledge, but he has given what in all reason amounts to a promise that he will favourably consider this. You cannot go on favourably considering for three years, and then at the end of that period say that the time is not long enough, and that you should have a fourth year, and do nothing. Surely that is not treating the matter in a proper way! Even the hon. Member for Newcastle-under-Lyme (Mr. Wedgwood) has spoken in sympathy with us, although he has a different way of arriving at the same result. Nobody, not even the Attorney-General himself, has advanced any argument against our proposal. I am sure that the speech which the right hon. and learned Gentleman made was not one which would have gained for him his high position in the law. I suggest to him that this is a matter of honour. I should like to move the adjournment of the Debate in order that the Chancellor of the Exchequer might be invited to come and give his reasons for his change of front since so recent a time as the Second

    Division No. 271.]

    AYES.

    [9.27 p.m.

    Baird, John LawrenceGuinness, Hon. Rupert (Essex, S.E.)Pryce-Jones, Colonel E.
    Banbury, Sir Frederick GeorgeHall, Frederick (Dulwich)Rawlinson, John Frederick Peel
    Barlow, Montague (Salford, South)Hamersley, Alfred St. GeorgeRonaldshay, Earl of
    Barnston, HarryHamilton, C. G. C. (Ches., Altrincham)Salter, Arthur Clavell
    Bathurst, Charles (Wilts, Wilton)Harris, Henry PercySamuel, Samuel (Wandsworth)
    Boyle, William (Norfolk, Mid)Henderson, Major H. (Berks, Abingdon)Sanders, Robert Arthur
    Boyton, JamesHenderson, Sir A. (St. Geo., Han. Sq.)Stanley, Hon. G. F. (Preston)
    Bridgeman, W. CliveHewins, William Albert SamuelStewart, Gershom
    Cassel, FelixHibbert, Sir Henry F.Talbot, Lord E.
    Chaloner, Colonel R. G. W.Houston, Robert PatersonTerrell, G. (Wilts, N. W.)
    Dalziel, Davison (Brixton)Ingleby, HolcombeThompson, Robert (Belfast, North)
    Dickson, Rt. Hon. C. ScottLarmor, Sir J.Wheler, Granville C. H.
    Duke, Henry EdwardLewisham, ViscountWhite, Major G. D. (Lancs., Southport)
    Eyres-Monsell, Bolton M.Lloyd, George Butler (Shrewsbury)Wood, John (Stalybridge)
    Fell, ArthurLyttelton, Hon. J. C. (Droitwich)Worthington-Evans, L.
    Fisher, Rt. Hon. W. HayesMagnus, Sir Philip
    Fletcher, John SamuelMount, William Arthur
    Gilmour, Captain JohnPease, Herbert Pike (Darlington)TELLERS FOR THE AYES..—Captain Clive and Mr. Hicks Beach.
    Grant, James AugustusPollock, Ernest Murray
    Gretton, JohnPretyman, E. G.

    NOES.

    Abraham, William (Dublin, Harbour)Delany, WilliamHenderson, J. M. (Aberdeen, W.)
    Acland, Francis DykeDenman, Hon. Richard DouglasHenry, Sir Charles
    Adamson, WilliamDevlin, JosephHigham, John Sharp
    Alden, PercyDillon, JohnHodge, John
    Allen, Rt. Hon. Charles P. (Stroud)Donelan, Captain A.Hogg, David C.
    Baker, Harold T. (Accrington)Doris, WilliamHogge, James Myles
    Baker, Joseph Allen (Finsbury, E.)Duffy, William J.Holmes, Daniel Turner
    Balfour, Sir Robert (Lanark)Duncan, C. (Barrow-in-Furness)Howard, Hon. Geoffrey
    Barlow, Sir John Emmett (Somerset)Esmonde, Dr. John (Tipperary, N.)Hudson, Walter
    Beauchamp, Sir EdwardFalconer, JamesHughes, Spencer Leigh
    Beck, Arthur CecilFerens, Rt. Hon. Thomas RobinsonIllingworth, Percy H.
    Boland, John PiusFfrench, PeterIsaacs, Rt. Hon. Sir Rufus
    Booth, Frederick HandelField, WilliamJohn, Edward Thomas
    Bowerman, C. W.George, Rt. Hon. D. LloydJones, Rt.Hon.Sir D.Brynmor (Swansea)
    Brady, Patrick JosephGill, A. H.Jones, J. Towyn (Carmarthen, East)
    Bryce, J. AnnanGladstone, W. G. C.Jowett, Frederick William
    Burke, E. Haviland-Goldstone, FrankJoyce, Michael
    Buxton, Noel (Norfolk, North)Greig, Colonel J. W.Keating, Matthew
    Byles, Sir William PollardGriffith, Ellis J.Kellaway, Frederick George
    Cawley, Sir Frederick (Prestwich)Guest, Major Hon. C. H. C. (Pembroke)Kelly, Edward
    Chancellor, H. G.Guest, Hon. Frederick E. (Dorset, E.)Kennedy, Vincent Paul
    Chapple, Dr. William AllenGulland, John WilliamKilbride, Denis
    Clancy, John JosephGwynn, Stephen Lucius (Galway)King, J.
    Clough, WilliamHackett, JohnLambert, Richard (Wilts, Cricklade)
    Collins, G. P. (Greenock)Harcourt, Rt. Hon. H. L. (Rossendale)Lardner, James C. R.
    Condon, Thomas JosephHarcourt, Robert V. (Montrose)Law, Hugh A. (Donegal, West)
    Cotton, William FrancisHarmsworth, Cecil (Luton, Beds)Lawson, Sir W. (Cumb'rid, Cockermith)
    Cowan, William HenryHarmsworth, R. L. (Caithness-shire)Leach, Charles
    Crumley, PatrickHarvey, T. E. (Leeds, West)Lewis, Rt. Hon. John Herbert
    Cullinan, JohnHayden, John PatrickLundon, Thomas
    Davies, Timothy (Lincs., Louth)Hayward, EvanLyell, Charles
    Davies, Sir W. Howell (Bristol)Hazleton, RichardLynch, Arthur Alfred

    Reading of the Bill. Everybody must have felt that on the Second Reading a promise was given that a properly worded Amendment on this subject would be accepted, and now the Chancellor of the Exchequer is not here to explain his change of front. The right hon. and learned Gentleman is naturally unable to give the explanation, and so the Debate becomes a hollow farce, instead of being a proper discussion of a perfectly reasonable proposal.

    Question put, "That the Clause be read a second time."

    The Committee divided: Ayes, 55; Noes, 189.

    Macdonald, J. Ramsay (Leicester)O'Malley, WilliamSheehy, David
    McGhee, RichardO'Neill, Dr. Charles (Armagh, S.)Shortt, Edward
    Macnamara, Rt. Hon. Dr. T. J.O'Shaughnessy, P. J.Smith, Albert (Lancs., Clitheroe)
    MacNeill, J. G. Swift (Donegal, South)O'Shee, James JohnSmyth, Thomas F. (Leitrim, S.)
    Macpherson, James IanO'Sullivan, TimothySnowden, Philip
    MacVeagh, JeremiahOuthwaite, R. L.Strauss, Edward A. (Southwark, West)
    Markham, Sir Arthur BasilParker, James (Halifax)Taylor, Thomas (Bolton)
    Meagher, MichaelParry, Thomas H.Tennant, Harold John
    Meehan, Francis E. (Leitrim, N.)Pearce, Robert (Staffs, Leek)Thomas, J. H.
    Meehan, Patrick J. (Queen's Co., Leix)Pearce, William (Limehouse)Thorne, G. R. (Wolverhampton)
    Molloy, M.Phillips, John (Longford, S.)Thorne, William (West Ham)
    Money, L. G. ChiozzaPonsonby, Arthur A. W. H.Toulmin, Sir George
    Mooney, John J.Price, C. E. (Edinburgh, Central)Trevelyan, Charles Philips
    Morgan, George HayPringle, William M. R.Wardle, George J.
    Morrell, PhilipRaffan, Peter WilsonWaring, Walter
    Morison, HectorRea, Walter Russell (Scarborough)Warner, Sir Thomas Courtenay
    Morton, Alpheus CleophasReddy, M.Watt, Henry A.
    Muldoon, JohnRedmond, John E. (Waterford)Webb, H.
    Munro, R.Redmond, William (Clare, E.)Wedgwood, Josiah C.
    Munro-Ferguson, Rt. Hon. R. C.Redmond, William Archer (Tyrone, E.)White, J. Dundas (Glasgow, Tradeston)
    Murray, Captain Hon. A. C.Richardson, Albion (Peckham)White, Sir Luke (Yorks, E.R.)
    Neilson, FrancisRichardson, Thomas (Whltehaven)White, Patrick (Meath, North)
    Nolan. JosephRoberts, Charles H. (Lincoln)Williams, John (Glamorgan)
    Norton, Captain Cecil W.Roberts, G. H. (Norwich)Williamson, Sir Archibald
    O'Brien, Patrick (Kilkenny)Robertson, John M. (Tyneside)Wilson. Hon. G. G. (Hull, W.)
    O'Connor, John (Kildare, N.)Robinson, SidneyWilson, W. T. (Westhoughton)
    O'Connor, T. P. (Liverpool)Roche, Augustine (Louth)Wing, Thomas Edward
    O'Doherty, PhilipRoe, Sir ThomasWood, Rt. Hon. T. McKinnon (Glasgow)
    O'Donnell, ThomasRunciman, Rt. Hon. WalterYoxall, Sir James Henry
    O'Dowd, JohnSamuel, Rt. Hon. H. L. (Cleveland)
    O'Kelly, Edward P. (Wicklow, W.)Scanian, ThomasTELLERS FOR THE NOES.—Mr. Wedgwood Benn and Mr. W. Jones.
    O'Kelly, James (Roscommon, N.)Scott, A. MacCallum (Glos., Bridgeton)

    New Clause—(Amendment Of Section 19, Sub-Section (7) Of Finance Act, 1907)

    "Section 19, Sub-section (7), of the Finance Act, 1907, shall be amended so as to include in the expression "earned income," any income (including annuities) accruing to any person from investments or property which have been acquired wholly or in part by such person, or the husband or wife of such person, out of moneys earned by such person, or the husband or wife of such person, in any trade, business, vocation, or profession, or in any employment, or otherwise by the personal effort, skill, or ingenuity, of such person, or the husband or wife of such person, and where such investments or property have been partly acquired out of moneys earned as aforesaid, or where any annuity has been partly purchased out of moneys so earned, a proportionate part of the income arising from such investment or property, or a proportionate part of such annuity, shall be deemed to be earned income."

    Clause brought up, and read the first time.

    I beg to move, "That the Clause be read a second time."

    While the Budget of 1907 was under consideration and the distinction between earned and unearned increment was under discussion the Chancellor of the Exchequer was prevailed upon to allow pensions to be treated as earned income. If you allow pensions to be so treated, I cannot see why you should not, in common justice and equity, also allow the income from savings, which of themselves have been derived from a man's earnings, to be also classified as earned income. When a man saves his income and invests the money or purchases an annuity you treat that as unearned income, and if he is rich enough not to invest his money but to allow his capital to accumulate, his descendants, if he has any, have to pay a large sum. That is obviously putting a premium upon unthrift and encouraging people to spend the whole of their income. I have no doubt that the Chancellor will say that this Amendment is desirable, but that it is quite impracticable in its working, because he would have to depend upon the personal declaration of the Income Tax payer. I do not see any very great difficulty about that, because at the present moment the Chancellor of the Exchequer is very glad to receive personal declarations when he wishes to collect Income Tax or when he wants to collect the Super-tax, and he is quite willing to trust to the accuracy of the returns. He is also content to receive personal declarations from people who want to get exemptions or abatements. Therefore, I cannot see why he should not also accept the personal declaration that a certain definite proportion of income is derived from savings accumulated during the active portion of a man's life, and it is because I wish to encourage people to save during the active portion of their lives so as to have the compensation at the end of their lives of comparative prosperity that I beg to move this Amendment.

    When the question of extending the concessions with regard to earned income to pensions was first raised the Prime Minister, who was then Chancellor of the Exchequer, was very doubtful as to the principle and the expediency of making that concession, but on the whole the balance of argument was in favour of treating pensions as portions of the income which a man earned, and therefore the pension is not a saving, but is only a part of a man's income, the payment of which you defer until he has retired from the service. On that ground the Amendment was accepted. But the present proposal in the first place is, I think, quite impracticable. If a man has been for twenty or thirty or forty years in business, then, according to this Amendment, if his income or portion of it is derived from investments of savings that he has made, he is to be charged on the ninepenny rate. The hon. Gentleman says that his own declaration ought to suffice, and that if he makes a statement that his investments arise from money which he had saved, that ought to be conclusive. If not how are you going to check it? You have difficulties enough in checking the declarations made by the subject now which only deal with the income of the preceding year; but this would involve examination of accounts extending over twenty, thirty, or forty years in order to discover whether the money which he has got to-day was earned or inherited or got by some other means not earned. It is quite an impracticable policy. I do not think that it could be carried out, and I cannot possibly accept the extension. I think that the hon. Baronet who pressed for the inclusion of pensions was quite prepared to take the statement that the inclusion of the pension did not necessarily justify the claim of those who save money to treat it as earned income when they invested it later in life.

    I do not remember with regard to pensions, but I do not see any difference between a pension which is a deferred income and the savings of an income. Take the case of a man in business. He makes £3,000 a year. He is a prudent, saving man. He only spends £1,000 out of that £3,000. After twenty years or so he finds himself the possessor of 50,000. On that he retires. What is the difference between that man and the Civil servant who receives an income of £3,000 a year and spends the whole of it, but when he retires he is granted a pension of £2,000 a year on the ground that it is deferred pay. I see no difference between those two cases. I should rather say that the exemption should be in favour of the person who out of the £3,000 a year only spends £1,000, and resists the temptation to spend the whole of his income and makes a saving for himself and his family, while the Civil servant gets the deferred money which he could not touch if he wanted, because the State, acting as a provident and wise parent, refuses to give him the whole amount of what he was earning during the time he was earning it, but gives him a pension. I do not see why that pension should be considered as earned money, while the savings of the man of business on which he has retired are not to be considered as earned income. I must say I do not see where the difficulty mentioned by the right hon. Gentleman comes in. Surely it is perfectly easy, taking the case of a man with an income of £2,000 a year, for the Income Tax Commissioners to ask him to make a declaration that none of the money came to him by inheritance or under a will. It would be perfectly easy to consult the records at Somerset House, which would show whether certain people had received money under wills or from inheritance. If they did not, then there are no means of which I am aware by which they can get money save by their own exertion. That may or may not be the case; but I do not see there is any difficulty in requiring a declaration from the person as to whether his income is derived from gift under a will or inheritance, or whether it is derived from savings. My idea, however, is that all these exemptions never should have been made; I think it is a mistake to introduce them; but if you exempt the pensioner, you certainly ought to exempt a man who has saved his earnings.

    Question, "That the Clause be read a second time," put, and negatived.

    New Clause—(Leasehold Insurance Premiums)

    "Any individual who claims and proves that under policies taken out with any recognised life insurance office for redemp- tion of leasehold property having sixty years or less to run, shall be entitled to allowance in respect of the annual premiums paid."

    Clause brought up, and read the first time.

    I beg to move, "That the Clause be read a second time."

    The object of this Clause provides that any person shall be entitled to allowance on Income Tax in respect of annual premiums paid on a leasehold policy. It has been long felt a great hardship that Income Tax should have to be paid on leasehold investments as on freehold. The economical and careful person who guards himself against depreciation by taking out policies gets no allowance for the premium he pays to the insurance company, although the insurance company who invests his premiums pay Income Tax upon the earnings from them. Thus the Government get double Income Tax. That seems to me to be anomalous, more especially in view of the fact that a person who insures his life can do so up to about a fifth of his income, and receive an allowance in respect of the premiums. If the Chancellor of the Exchequer does not like the narrowness or the wideness of this Amendment, he could, of course, limit the investing power of the person in leasehold redemption to the same amount as in the case of life insurance—a fifth of the income. I submit that it would be doing an act of justice to accept this Amendment.

    This, in principle, is really the same as a proposal made earlier in the evening, and which was discussed, namely, the question of wasting assets. The hon. and learned Gentleman (Mr. Pollock), who moved that Amendment, used an argument showing that there was a distinction between what he proposed and the Clause which is now submitted, and he said there was no case for this one at all. I must say I think he demonstrated that there was a stronger case in respect of wasting assets than there is for this proposal. I can only say that if we once began to introduce these exemptions the Income Tax would gradually disappear.

    There was a good deal of policy in that. The idea was rather to encourage life insurance at the time that provision was introduced, and it was not altogether the recognition of any definite principle. I agree with what the hon. Baronet the Member for the City of London (Sir F. Banbury) said when he objected to the introduction of these exemptions. They lead to complications, and a good many people escape who ought not to escape, while a great many people who can show a much better case still remain liable.

    Every time I write a cheque for Income Tax I wish it was for ten times the amount.

    Question, "That the Clause be read a second time," put, and negatived.

    New Clause—(Income Of Husband And Wife Not To Be Aggregated)

    "For the purpose of Super-tax the incomes of husband and wife shall not be aggregated."

    Clause brought up, and read the first time."

    I beg to move, "That the Clause be read a second time."

    I had this Amendment down on the Paper for the Revenue Bill, which was not taken, and I took it off the Paper and now move it in regard to this Bill. It is a very simple Clause, and, I think, a very just one. There can be no reason why, for the purposes of the Super-tax, the income of the husband and wife should be aggregated. As the Committee knows, the income of a person liable to Super-tax is upwards of £5,000 a year. It is perfectly well known that there are wives of taxpayers who have anything from £1,000 to £2,000 or £3,000 a year and upwards, and in that case the income is either settled upon the wife or the money is entirely in her control. Therefore, the husband, though he may be assessed for Super-tax by his wife's income being added to his own, has practically no control whatever over her income, which, being added to his own, makes him liable for Super-tax. It may be that in the smaller cases settlements do not occur and that the husband has control over the wife's money, but in all the larger cases which are touched by the Super-tax. I think I am absolutely correct in saying that in nine cases out of ten the control of the money is entirely in the wife's hands. I know of several cases where the husband had to pay Super-tax on account of his wife's income of which he never had any control and of which he never received a farthing, while the wife refused to pay the Super-tax. I do not say that is a usual case, but such cases do occur. In the case of a brother and sister, or of two brothers or of two sisters keeping house together, the incomes are not aggregated, and why, therefore, should the income of a wife over which the husband has no control be added to the income of the husband? It is, I think, most unfair, and cannot be justified on any ground whatever. It may be said that where the husband has control over the money then he ought to pay Super-tax, and I do not know that I should be averse to the insertion of that in my Amendment. As it would be difficult to draw the Clause in that way, I simply put it down in the way I have moved it in order to have the opinion of the Chancellor upon it. I endeavoured in former years to move the Clause, but as the Debate usually occurred in December at about six o'clock in the morning I did not have the opportunity. I was taken to task earlier in the evening by the Noble Lord the Member for Hitchin (Lord Robert Cecil) for being too kind to the Government. I think I deserve some thanks for that attitude, and I hope the Chancellor will not forget that I have been subjected to obliquy for having assisted him too much, and that the least he can do is to give my new Clause a sympathetic hearing.

    10.0 P.M.

    As a Member of the Government, I can absolve the hon. Baronet from the charge brought against him. I am perfectly certain that in all cases he has done nothing except to drive a very good bargain for his party, and I do not think the Noble Lord need be under any misapprehension that the hon. Baronet is likely to give any point away to the Government. This proposal raises exactly the same point of principle as that raised by the hon. and learned Member for Cambridge University (Mr. Rawlinson), and the same considerations apply in both cases. If this Clause were accepted, the other Amendment could not be resisted, and this would have to be done for the general Income Taxpayer, and the result would be an enormous hole in the revenue derived from Income Tax. I say now, as I said then, that it is not merely because of loss of revenue, but on principle I think this proposal is wrong. You must in these cases treat the household income as one. It is the only fair way in which you could do it, to tax people according to their available means of livelihood. If you had a case of a husband and wife, each with £4,500 per year, under this proposal they would escape Super-tax altogether, while if either of them had £5,100 per year, that person would be subject to Super-tax, while in the first case the income would be very much greater. The same argument applies to the other Amendment, and I must refuse this on principle and on the ground that it would be disastrous to the revenue.

    I would not like my hon. Friend to think that I passed a general criticism on him, as it was only a passing and venial offence to which I referred. Apart from that, I confess I think he is right in this matter. I agree with the Chancellor of the Exchequer that the two cases really in principle are the same, and I agree with him that there is a good deal to be said for the view that you should consider the household expenses as one. The difficulty of that view is that it is not the view that is adopted for the purpose of taxation, except in the case of the husband and wife. In the case of an irregular union there would be no aggregation, or in the case of two sisters living together, or in the case of two brothers, or a brother and sister, and, in fact, in no other case. This is really based on the principle that husband and wife are to be regarded as one for the purposes of income as well as for other purposes. That has, however, entirely passed away. The Married Women's Property Act really destroyed that idea, and subsequent legislation has carried it further in every direction. For every other purpose husband and wife are, so far as their commercial entity is concerned, entirely separate. In taxation alone, they are treated as one. I do not think that is defensible. You can have a theory on which you can tax a house and not a person. That is not our theory. Our theory is that you tax a person. In that case I cannot see on what ground you are to treat husband and wife for this purpose as one person when you do not treat them in any other, commercial or property, as one person any longer. For these reasons it appears to me that the argument of my hon. Friends is absolutely incapable of refutation. This is merely a relic of an older and less civilised state of things, when we had a different view as to the relations of husband and wife from a property point of view.

    I must really protest against the argument of the Chancellor of the Exchequer. It, at any rate, has the benefit of novelty, but it is absolutely fallacious. You do not tax the household income. If a husband and wife were living apart there would be no exemption from this tax at all. The principle has nothing to do with the household entity. Other people living together are not taxed in the same way. It has never been suggested that the tax was upon the household income. A possible reason against accepting the new Clause might be that the Chancellor of the Exchequer cannot afford it, but no successful attempt has been made to defend the anomaly of treating the income of husband and wife as one. It is an anomaly arising from the old common law principle that the husband and wife for all purposes were one. That has ceased to be the state of the law, and in common justice this new Clause ought to be carried in the case both of Income Tax and of Super-tax.

    The Chancellor of the Exchequer did not deal with the suggestion that in the case of a husband having the full control and enjoyment of his wife's income he should be liable to the Super-tax. Perhaps the right hon. Gentleman would say whether he thinks there is something in that point.

    I do not think that that really happens. What does happen is that the income available for running the establishment is largely the

    Division No. 272.]

    AYES.

    [10.12 p.m.

    Baird, John LawrenceGilmour, Captain JohnPryce-Jones, Colonel E.
    Barlow, Montague (Salford, South)Gretton, JohnRonaldshay, Earl of
    Barnston, HarryGuinness, Hon. Rupert (Essex, S.E.)Salter, Arthur Clavell
    Bathurst, Charles (Wilts, Wilton)Hall, Frederick (Dulwich)Samuel, Samuel (Wandsworth)
    Boyle, William (Norfolk, Mid)Hamersley, A. St. GeorgeSanders, Robert Arthur
    Boyton, J.Hamilton, C. G. C. (Ches., Altrincham)Snowden, Philip
    Bridgeman, W. CliveHarris, Henry PercyStanley, Hon. G. F. (Preston)
    Cassel, FelixHenderson, Sir A. (St. Geo., Han. Sq.)Stewart, Gershom
    Cecil, Lord R. (Harts, Hitchin)Hibbert, Sir Henry F.Talbot, Lord Edmund
    Chaloner, Colonel R. G. W.Houston, Robert PatersonWheler, Granville C. H.
    Clive, Captain Percy ArcherLarmor, Sir J.White, Major G. D. (Lancs., Southport)
    Dalziel, Davison (Brixton)Lewisham, ViscountWolmer, Viscount
    Dickson, Rt. Hon. C. ScottLloyd, George Butler (Shrewsbury)Wood, John (Stalybridge)
    Duke, Henry EdwardLyttelton, Hon. J. C. (Droitwich)Worthington-Evans. L.
    Duncannon, ViscountMorrison-Bell, Capt. E. F. (Ashburton)Younger, Sir George
    Eyres-Monsell, Bolton M.Mount, William Arthur
    Fell, ArthurPollock, Ernest MurrayTELLERS FOR THE AYES.—Sir F. Banbury and Mr. Rawlinson.
    Fisher. Rt. Hon. W. HayesPretyman, Ernest George
    Gibbs, G. A.

    joint income, and, therefore, the means available for paying the tax are larger. I do not think there is anything in the argument of two sisters or a brother and sister living together. That is purely a voluntary agreement, terminable at will. That with which we are dealing is a legal union, and you have to get the intervention of law to terminate it.

    Whether in a case of that kind there should be different arrangement is another point. The hon. Baronet is not pleading the case of people living apart, whether by consent or otherwise. He is on the general proposition of married people, which is altogether different from the case of a brother and sister or two sisters living together.

    It really is not different from the point of view of property. It is from the point of view of marriage, but from the point of view of property there is no distinction at all.

    I am rather surprised at the view of the Noble Lord. If his noble relative were present I think he would administer a very severe rebuke.

    There is a very serious distinction between the two as far as the law is concerned.

    Question put, "That the Clause be read a second time."

    The Committee divided: Ayes, 51; Noes, 192.

    NOES.

    Abraham, William (Dublin, Harbour)Hayden, John PatrickO'Kelly, James (Roscommon, N.)
    Acland, Francis DykeHayward, EvanO'Malley, William
    Adamson, WilliamHazleton, RichardO'Neill. Dr. Charles (Armagh, S.)
    Alden, PercyHenderson, J. M. (Aberdeen, W.)O'Shaughnessy, P. J.
    Allen, Rt. Hon. Charles P. (Stroud)Henry, Sir CharlesO'Shee, James John
    Asquith, Rt. Hon. Herbert HenryHigham, John SharpO'Sullivan, Timothy
    Baker, Harold T. (Accrington)Hodge, JohnPalmer, Godfrey Mark
    Baker, Joseph A. (Finsbury, E.)Hogg, David C.Parker, James (Halifax)
    Balfour, Sir Robert (Lanark)Hogge, James MylesParry, Thomas H.
    Barlow, Sir John Emmott (Somerset)Holmes, Daniel TurnerPearce, Robert (Staffs, Leek)
    Beauchamp, Sir EdwardHoward, Hon. GeoffreyPearce, William (Limehouse)
    Beck, Arthur CecilHudson, WalterPhillips, John (Longford, S.)
    Boland, John PiusHughes, Spencer LeighPonsonby, Arthur A. W. H.
    Booth, Frederick HandelIllingworth, Percy H.Price, C. E. (Edinburgh, Central)
    Bowerman, Charles W.Isaacs, Rt. Hon. Sir RufusPringle, William M. R.
    Brady, Patrick JosephJohn, Edward ThomasRaffan, Peter Wilson
    Bryce, J. AnnanJones, Rt. Hon. Sir D. Brynmor (Swansea)Rea, Walter Russell (Scarborough)
    Burke, E. HavilandJones, J. Towyn (Carmarthen, East)Reddy, Michael
    Buxton, Rt. Hon. Sydney C. (Poplar)Joyce, MichaelRedmond, John E. (Waterford)
    Byles, Sir William PollardKeating, MatthewRedmond, William (Clare, E.)
    Cawley, Sir Frederick (Prestwich)Kellaway, Frederick GeorgeRedmond, William Archer (Tyrone, E.)
    Chancellor, Henry GeorgeKelly, EdwardRichardson, Thomas (Whitehaven)
    Chapple, Dr. William AllenKennedy, Vincent PaulRoberts, Charles H. (Lincoln)
    Clancy, John JosephKilbride, DenisRoberts, George H. (Norwich)
    Clough, WilliamKing, JosephRobertson, John M. (Tyneside)
    Collins, Godfrey P. (Greenock)Lambert, Rt. Hon. G. (Devon. S. Molton)Robinson, Sidney
    Condon, Thomas JosephLambert, Richard (Wilts, Cricklade)Roche, Augustine (Louth)
    Cotton, William FrancisLardner, James C. R.Roe, Sir Thomas
    Cowan, William HenryLaw, Hugh A. (Donegal, West)Runciman, Rt. Hon. Walter
    Craig, Herbert J. (Tynemouth)Lawson, Sir W. (Cumb'rid, Cockerm'th)Samuel, Rt. Hon. H. L. (Cleveland)
    Crumley, PatrickLewis, Rt. Hon. John HerbertScanlan, Thomas
    Cullinan, JohnLundon, ThomasScott. A. MacCallum (Glas., Bridgeton)
    Davies, David (Montgomery Co.)Lyell, Charles HenrySheehy, David
    Davies, Timothy (Lincs., Louth)Lynch, Arthur AlfredShortt, Edward
    Davies, Sir W. Howell (Bristol, S.)Macdonald, J. Ramsay (Leicester)Simon, Rt. Hon. Sir John Alisebrook
    De Forest, BaronMcGhee, Richard,Smith, Albert (Lancs., Clitheroe)
    Delany, WilliamMacnamara, Rt. Hon. Dr. T. J.Smyth, Thomas F. (Leitrim, S.)
    Denman, Hon. Richard DouglasMacNeill, J. G. Swift (Donegal, South)Strauss, Edward A. (Southwark, West)
    Devlin, JosephMacpherson, James IanTaylor, Thomas (Bolton)
    Dillon, JohnMacVeagh, JeremiahTennant, Harold John
    Donelan, Captain A.Markham, Sir Arthur BasilThomas, J. H.
    Doris, WilliamMasterman, Rt. Hon. C. F. G.Thorne, G. R. (Wolverhampton)
    Duffy, William J.Meagher, MichaelThorne, William (West Ham)
    Duncan, C. (Barrow-in-Furness)Meehan, Francis E. (Leitrim, N.)Toulmin, Sir George
    Esmonde, Dr. John (Tipperary, N.)Meehan, Patrick J. (Queen's Co., Leix)Trevelyan, Charles Philips
    Falconer, JamesMolloy, MichaelUre, Rt. Hon. Alexander
    Ferens, Rt. Hon. Thomas RobinsonMontagu, Hon. E. S.Wardie, G. J.
    Ffrench, PeterMorgan, George HayWaring, Walter
    Field, WilliamMorrell, PhilipWarner, Sir Thomas Courtenay
    Fletcher, John SamuelMorison, HectorWatt, Henry A.
    George, Rt. Hon. D. LloydMorton, Alpheus CleophasWebb, H.
    Gill, A. H.Muldoon, JohnWedgwood, Josiah C.
    Gladstone, W. G. C.Munro, RobertWhite, J. Dundas (Glasgow, Tradeston)
    Goldstone, FrankMunro-Ferguson, Rt. Hon. R. C.White, Sir Luke (Yorks, E.R.)
    Greig, Colonel J. W.Murray, Captain Hon. Arthur C.White, Patrick (Meath, North)
    Griffith, Ellis JonesNeilson, FrancisWilliams, John (Glamorgan)
    Guest, Major Hon. C. H. C. (Pembroke)Nolan, JosephWilliamson. Sir Archibald
    Guest, Han. Frederick E. (Dorset, E.)Norton, Captain Cecil W.Wilson, Hon. G. G. (Hull, W.)
    Gulland, John WilliamO'Brien, Patrick (Kilkenny)Wilson, W. T. (Westhoughton)
    Gwynn, Stephen Lucius (Galway)O'Connor, John (Kildare, N.)Wing, Thomas Edward
    Hackett, JohnO'Connor, T. P. (Liverpool)Wood, Rt. Hon. T. McKinnon (Glasgow)
    Harcourt, Rt. Hon. L. (Rossendale)O'Doherty, PhilipYoxall, Sir James Henry
    Harcourt, Robert V. (Montrose)O'Donnell, Thomas
    Harmsworth, Cecil (Luton, Beds)O'Dowd, JohnTELLERS FOR THE NOES.—Mr. Wedgwood Benn and Mr. W. Jones.
    Harvey, T. E. (Leeds, West)O'Kelly, Edward P. (Wicklow, W.)

    Bill reported with Amendments; as amended, to be considered to-morrow (Tuesday).

    Appellate Jurisdiction Salaries And Pensions

    Resolution reported,

    "That it is expedient to authorise the payment, out of the Consolidated Fund, of the Salary and Pension of any additional Lord of Appeal in Ordinary appointed under any Act of the present Session to make further provision with respect to the number and duties of Lords of Appeal in Ordinary, provided that the sum paid in salaries in any one year to the Lords of Appeal in Ordinary appointed under this Act shall in no case exceed twelve thousand pounds."

    I beg to move the Amendment standing in the name of my hon. Friend the Member for Pancras—to leave out the word "twelve" ["shall in no case exceed twelve thousand pounds"], and to insert instead thereof the word "five."

    The House has already agreed that in a Bill of this kind it is right and proper that there should be a limit set to the amount of money to be provided. It seems to me that if there is to be any value in that maximum limit it should be fixed as clearly as possible. As regards this question of inserting five thousand pounds, instead of twelve thousand pounds, we know that there is a Royal Commission sitting, and we have every reason to hope that in the Report of that Royal Commission there will be some recommendation that judges should be retired at a specified age. I have an Amendment on the Paper lower down proposing that these two new Law Lords, proposed to be set up under this Bill, should be confined to judges who had served their time and qualified for a pension, and if, as many of us hope, we are going to have that limit of age, then you would be able to find amongst these judges to fill these posts, to use the words of the Memorandum, that appears upon the face of this Bill, "English judges of the finest quality." You are going to have a supply of these judges ready at hand, and already in possession of pensions of £3,500 a year each. Therefore, if you confine these appointments to these ex-judges, you would only require in each case an additional £2,500 a year to bring the salaries of each of the Law Lords up to £6,000 a year. Here we are creating two of the most expensive offices known to our Constitution, and everybody in favour of economy must be agreed that if we can do it without detriment to that great office of Law Lordship, we should do it as cheaply as possible, and that can be done by retiring two nisi prius judges at an early age. These judges deal with trials and hear witnesses, and their work is very different from that of the Lords-in-Ordinary, who have only to sit two or three days a week and a couple of hours each day. These judges would be specially qualified as English judges of the highest quality to take these appointments. Therefore, I have great confidence in moving this Amendment, and recommending it to the consideration of the House.

    I beg to second the Amendment, and I am only sorry that the hon. Member for St. Pancras is not here to move it himself. The Amendment is that £5,000 should be substituted for £12,000 in the huge sum which is to be paid to the judges under this Bill. The idea at the back of that limitation is that it is considered by us that one new judge would be quite sufficient to satisfy the claims of the Dominions for extra judges. All that the Dominions seek is that a larger quorum of the Judicial Committee of the Privy Council should sit on Dominion cases and the quorum present is at least three. The objection the Dominions have to such a quorum is that occasionally in their own Courts more than three judges—

    The hon. Member will recollect that Mr. Speaker's ruling, given in very definite terms, was that a Resolution is not the occasion to debate the Bill. The hon. Member is referring to Amendments to the Bill itself. Those Amendments should not be discussed on the Resolution, and we should wait until we get into Committee on the Bill.

    Then I will confine myself to the limitation of £5,000, instead of £12,000. The sum of £5,000 was the salary originally intended for two judges. I do not know whether hon. Members are aware of the fact that this is the third Session in which an Appellate Jurisdiction Bill has been brought before the House, and on the two former occasions it was practically defeated. At first the salaries were put at £5,000, but not withstanding the fact that the two previous Bills were thrown out, the Government now come forward with a third Bill, and they raise the salary from £5,000 to £6,000. My argument is that the view originally held by the Government that £5,000 was quite sufficient should prevail. I am surprised that after this Bill has been practically rejected twice by the House that the Government have the courage to bring forward this measure a third time, and not only to do this, but they are now proposing to increase the salaries of the judges. When this Bill was formerly before the House, we had the assistance of the Labour party in opposing the appointment of these judges, but now for some unknown reason the Labour party are not assisting us on this occasion. The reduction I suggest is that one judge is sufficient to give the quorum desired by the Dominions, and I think the salary of that judge should be £5,000, an amount which the Government thought was sufficient on two former occasions.

    I will endeavour to obey your ruling, Mr. Deputy-Speaker, in answering the arguments put forward by my hon. Friend. The object of this Amendment is not quite easy to discern, because the hon. and learned Gentleman who moved it said he did so for the purpose of enabling him to pass a Resolution to give effect to an Amendment which he had on the Paper that judges who had retired would be able to serve if they received £2,500, which, with their pension, would give them a salary of £6,000. I understand that the hon. and learned Gentleman who seconded the Amendment desires to reduce it to one Law Lord and to pay him a salary of £5,000. I have already explained to the House, both on the Second Reading of the Bill and also when in Committee on this Resolution that the object of this Bill is to give the same salary to the two new Law Lords as the four Law Lords have had ever since 1876. It does not raise anybody's salary, and it does not add anything to the salary; it does not raise the pension or add anything to the pension. It puts the two new Law Lords on exactly the same basis as the four Law Lords have been ever since the year 1876. I hope that will commend itself to the House, and that they will see that is the only way in which this Bill can be properly carried out. It is a little difficult to understand how you can have two Law Lords standing at a lower salary than four others with whom they form the same tribunal? The hon. and learned Gentleman who moved seems to think that. it would be sufficient that you should have sitting in the Supreme Tribunal for the United Kingdom and also for the Dominions, the highest Court in the British Empire, men who have retired on account of ill-health, or old age, or because of some infirmity and because they have already served as many years as they consider they can usefully serve. I really do think that is an impossible proposition. I doubt very much whether the hon. Gentleman had in mind the fact that these judges would have to sit in the House of Lords. They would, when they retired, actually sit in the Supreme Tribunal where, during their active period, they had only sat as judges of the first instance. It is obvious that would be quite an impossible state of things. We have already, by the Resolution which is before the House, limited the salaries to a sum not exceeding £12,000 for the two judges, which makes it impossible to pay any higher salary than has been paid ever since 1876 without any question. I was rather surprised to hear the hon. and learned Gentleman, who is a Member of the Royal Commission, stating what he thought was going to be the views of the Commission which has not yet reported, and which, so far as I know, has not yet sat and deliberated.

    I did not say what I thought would be the Report, but what many of us hoped would be the Report.

    The hon. and learned Member is a member of the Commission, and that is what drew from me the observation. I should not have thought anything of it if it had been said by any other hon. Member. It is a little, unusual that a member of a Royal Commission should express his views in that way. This Amendment stands in the name of the hon. and learned Member for. East St. Pancras (Mr. Martin), and it is most regrettable that he is not here and that advantage should have been taken of the Amendment standing in his name, to, move it when it must be known that so far as he was concerned he was perfectly satisfied. [HON. MEMBERS: "No."] I alit speaking of the result of a conversation which took place with the Lord Chancellor, and in reference to a document which I hold in my hand.

    I understand that he was not satisfied, but that he got the best he could, and then went away to Canada, having made it impossible for him to move any of his Amendments after the discussion that had taken place. I, therefore, think it a little strange that we should have an Amendment moved in his name. The hon. and learned Member seemed to think that he was moving it for the hon. and learned Member for St, Pancras.

    I hope we shall hear nothing more about the views of the hon. Member for East, St. Pancras (Mr. Martin). The House of Commons is quite capable of dealing with this question, and when the Attorney-General puts forward his own view it does not gain added weight from the views of an absent Member. The right hon. and learned Gentleman argued that it was impossible that in a body like the one being set up, some men should be paid higher salary than others. He suggested it was incongruous and unworkable. But he is a Member of a Government which has done that very thing, because in the Mental Deficiency Bill there are Commissioners in receipt of a salary of £1,500 a year, and the Home Secretary has promised that new ones shall be appointed at £1,200 a year. As one who likes to support the Government on every possible occasion, I must point out the quandary they get into through one Department not knowing what is done by another.

    I should like to point out that all the present Law Lords have not the same salary. The Lord Chancellor has a considerably higher salary than the other Law Lords.

    The Attorney-General was very much at sea when he argued that all judges must stand on an equality as regards salary. I raise my voice against this on the ground of economy, and I particularly want to hear the views of the Opposition on this, because when there is a very small economy proposed plenty of them are ready to vote for it, but when it is an economy involving thousands of pounds they are dumb dogs, all of them. We know the reason in this case. One of these appointments is to go to one of their friends. Let some responsible Member of the Opposition give voice to their views on tins occasion.

    I object to this on the same grounds as the last speaker. It is high time we studied economy. I do not believe these judges are wanted at all, but no doubt they have already been selected. It is so easy when we are spending other people's money. I was sorry to hear the Attorney-General make the remarks he did about the hon. Member for East St. Pancras. No one can object to an hon.

    Division No. 273.]

    AYES.

    [10.45 p.m.

    Abraham, William (Dublin, Harbour)Baker, Joseph Allen (Finsbury, E.)Beck, Arthur Cecil
    Acland, Francis DykeBalfour, Sir Robert (Lanark)Bird Alfred
    Allen, Rt. Hon. Charles P. (Stroud)Banbury. Sir FrederickBeland, John Pius
    Anson. Rt. Hon. Sir William R.Barlow, Sir John Emmett (Somerset)Boyle, William (Norfolk, Mid)
    Asquith, Rt. Hon. HerbertBarlow, Montague (Salford, South)Boyton, J.
    Baird, John LawrenceBarnston, HarryBrady, Patrick Joseph
    Baker, H. T. (Accrington)Beauchamp, Sir EdwardBryce, J. Annan

    Member who has been so regular in his attendance going away a little early on his holidays. Then as to the remarks made about the Royal Commission. I submit that the Government have no business to be going on with this Bill at all pending. the Report of the Royal Commission, seeing that when the appointment has been made we may find the Royal Commission reporting in favour of something very different. Expenditure should not be rushed in this way at the moment a Royal Commission is considering the self-same matter. It is late in the day of the Session to ask this. House to be economical, but I do think that this year there has been more reckless squandering of public money than there has ever been before. I hope the House will say that £5,000 is, if anything, more than ought to be paid for these new posts.

    It is not quite fair to assume that those who oppose this Grant are animated by any sort of indifference to the interests of the Colonies. I certainly am not conscious of being more indifferent to the interests of the Empire than those who support this Grant. What I feel is that we have been asked to make a large addition to the judges this year, and I do not think the present condition of the bench has been sufficiently surveyed before those additions were made. I should like to have seen a Report of the Royal Commission. I believe that there are probably some judges on the bench—there certainly were in my own country until not long ago, when certain changes were made—who would be better retired, and that if the full bench of judges was in active operation it is probable that these new appointments would be unnecessary. It is on these grounds, and not because of any indifference to the needs of the Colonies being met in the High Court here, that I associate myself with those who advocate the reduction of the Grant.

    Question put, "That the word 'twelve' stand part of the said Resolution."

    The House divided: Ayes, 207; Noes, 36.

    Burke, E. Haviland-Hibbert, Sir Henry F.Parker. James (Halifax)
    Buxton, Noel (Norfolk, North)Higham, John SharpParry, Thomas H.
    Buxton, Rt. Hon. Sydney C. (Poplar)Hills, John WallerPearce, Robert (Staffs, Leek)
    Cassel, FelixHolmes, Daniel TurnerPearce, William (Limehouse)
    Cecil, Lord Hugh (Oxford University)Howard, Hon. GeoffreyPease, Herbert Pike (Darlington)
    Cecil, Lord R. (Herts, Hitchin)Hughes, Spencer LeighPhillips, John (Longford, S.)
    Chaloner, Colonel R. G. W.Illingworth. Percy H.Pollock, Ernest Murray
    Chancellor, Henry GeorgeIngleby, HolcombePretyman, Ernest George
    Clancy, John JosephIsaacs, Rt. Hon. Sir RufusPrice, C. E. (Edinburgh, Central)
    Clive, Captain Percy ArcherJohn, Edward ThomasPryce-Jones, Colonel Edward
    Clough, WilliamJones, Rt. Hon. Sir D. Brynmor (Swansea)Raffan, Peter Wilson
    Collins, G. P. (Greenock)Jones, J. Towyn (Carmarthen, East)Rawlinson, John Frederick Peel
    Condon, Thomas JosephJoyce, MichaelRea, Walter Russell (Scarborough)
    Cotton, William FrancisKeating, MatthewReddy, Michael
    Cowan, W. H.Kellaway, Frederick GeorgeRedmond, John E. (Waterford)
    Craik, Sir HenryKelly, EdwardRedmond, William (Clare, E.)
    Crumley, PatrickKerry, Earl ofRedmond, William Archer (Tyrone, E.)
    Cullinan, JohnKilbride, DenisRoberts, Charles H. (Lincoln)
    Dalziel, Davison (Brixton)Lambert, Rt. Hon. G. (Devon. S. Molton)Roberts, George H. (Norwich)
    Davies, David (Montgomery Co.)Lambert, Richard (Wilts, Cricklade)Robertson, John M. (Tyneside)
    Davies, Timothy (Lincs., Louth)Lardner, James C. R.Robinson, Sidney
    Davies, Sir W. Howell (Bristol, S.)Larmor, Sir J.Roche, Augustine (Louth)
    Delany, WilliamLaw, Hugh A. (Donegal, West)Roe, Sir Thomas
    Devlin, JosephLewis, Rt. Hon. John HerbertRonaldshay, Earl of
    Dickson, Rt. Hon. C. ScottLewisham, ViscountRoyds, Edmund
    Dillon, JohnLloyd, George Butler (Shrewsbury)Runciman, Rt. Hon. Walter
    Doris, WilliamLundon, ThomasSalter, Arthur Clavell
    Duffy, William J.Lyell, Charles HenrySamuel, Rt. Hon. H. L. (Cleveland)
    Duke, Henry EdwardLynch, Arthur AlfredSamuel, Samuel (Wandsworth)
    Duncan, C. (Barrow-in-Furness)Lyttelton, Hon. J. C. (Droitwich)Sanders, Robert Arthur
    Duncannon, ViscountMcGhee. RichardScanlan, Thomas
    Esmonde, Dr. John (Tipperary, N.)Macnamara, Rt. Hon. Dr. T. J.Scott, A. MacCallum (Glas., Bridgeton)
    Fell, ArthurMacpherson, James IanSheehy, David
    Ferens, Rt. Hon. Thomas RobinsonMacVeagh, JeremiahShortt, Edward
    Ffrench, PeterMcKenna, Rt. Hon. ReginaldSimon, Rt. Hon, Sir John Allsebrook
    Field, WilliamMasterman, Rt. Hon. C. F. G.Smyth, Thomas F. (Leitrim, S.)
    Fisher, Rt. Hon. W. HayesMeagher, MichaelStanley, Hon. G. F. (Preston)
    Fitzroy, Hon. Edward A.Meehan, Francis E. (Leitrim, N.)Stewart, Gershom
    Fletcher. John SamuelMeehan, Patrick J. (Queen's Co., Leix)Strauss, Edward A. (Southwark, West)
    George, Rt. Hon. D. LloydMolloy. MichaelTalbot, Lord Edmund
    Gibbs, George AbrahamMorgan, George HayTaylor, Thomas (Bolton)
    Gill, A. H.Morrell, PhilipTennant, Harold John
    Gladstone, W. G. C.Morison-Bell, Capt., E. F. (Ashburton)Terrell, George (Wilts, N.W.)
    Grant, J. A.Morison, HectorThorne. G. R. (Wolverhampton)
    Greig, Colonel James WilliamMount, William ArthurToulmin, Sir George
    Griffith, Ellis JonesMuldoon, JohnTrevelyan, Charles Philips
    Guest, Major Hon. C. H. C. (Pembroke)Munro, RobertWaring, Walter
    Guest, Hon. Frederick E. (Dorset, E.)Murray, Captain Hon. Arthur C.Webb, H.
    Guinness. Hon. Rupert (Essex, S.E.)Neilson. FrancisWheler, Granville C. H.
    Gulland, John WilliamNolan, JosephWhite, Major G. D. (Lancs., Southport)
    Gwynn, Stephen Lucius (Galway)O'Brien. Patrick (Kilkenny)White, J. Dundas (Glasgow, Tradeston)
    Hackett. JohnO'Connor, John (Kildare, N.)Mite, Sir Luke (Yorks, E.R.)
    Hall, Frederick (Dulwich)O'Connor, T. P. (Liverpool)l White, Patrick (Meath. North)
    Hamilton, C. G. C. (Ches., Altrincham)O'Doherty. PhilipWilson. Hon. G. G. (Hull, W.)
    Harcourt, Rt. Hon. Lewis (Rnssendale)O'Donnell. ThomasWolmer, Viscount
    Harcourt. Robert V. (Montrose)O'Dowd, JohnI Wood, John (Stalybridge)
    Harmsworth, Cecil (Luton, Beds)O'Kelly, Edward P. (Wicklow, W.)Wood, Rt. Hon. T. McKinnon (Glasgow)
    Harrison-Broadley, H. B.O'Malley. WilliamYounger, Sir George
    Harvey, T. E. (Leeds, West)O'Neill, Dr. Charles (Armagh, S.)Yoxall, Sir James' Henry
    Hayden, John PatrickO'Shaughnessy. P. J.
    Hayward, EvanO'Shee, James JohnTELLERS FOR THE AYES.—Mr. W. Bens and Mr. W. Jones.
    Hazleton, RichardO'Sullivan, Timothy
    Henry, Sir CharlesPalmer, Godfrey Mark

    NOES.

    Adamson, WilliamHodge. JohnPringle, William M. R.
    Booth, Frederick HandelRogge, James MylesRichardson, Thomas (Whitehaven)
    Bowerman, Charles W.Hudson, WalterSmith, Albert (Lancs., Clitheroe)
    Bridgeman, William CliveJowett, Frederick WilliamSnowden, Philip
    Byles, Sir William PollardKing, JosephThomas, J. H.
    Chapple, Dr. William AllenLawson, Sir W. (Cumb'rid, Cockerm'th)Thorne, William (West Ham)
    Denman, Hon. Richard DouglasMacdonald, J. Ramsay (Leicester)Wardle, George J.
    Eyres-Monsell, Bolton M.MacNeill, J. G. Swift (Donegal, South)Wedgwood, Josiah C.
    Gilmour, Captain JohnMarkham, Sir Arthur BasilWilliams, John (Glamorgan)
    Goldstone, FrankMorton, Alpheus CleophasWilson, W. T. (Westhoughton)
    Gretton, JohnMunro-Ferguson, Rt. Hon. R. C.
    Henderson, Major H. (Berks, Abingdon)Outhwaite, R. L.TELLERS FOR THE NOES.—Mr. Herbert Craig and Mr. Watt.
    Henderson, J. M. (Aberdeen, W.)Ponsonby, Arthur A. W. H.

    Questions, "That this House doth agree with the Committee in the said Resolution," put, and agreed to.

    Appellate Jurisdiction Bill

    The following Notices of Motion appeared upon the Paper relating to the Order for Committee on the Appellate Jurisdiction Bill:—

    "That it be an Instruction to the Committee that they have power to divide the Bill into two Bills, the first dealing with the constitution of the Court of Appeal and the House of Lords in relation to the hearing of United Kingdom appeals and the second with the Judicial Committee of the Privy Council in relation to the hearing of appeals from the Dominions and Colonies."—[ Mr. Herbert Craig.]

    "That it be an Instruction to the Committee to divide the Bill into two Bills, the first dealing with Lords of Appeal in Ordinary and the second dealing with the Judicial Committee of the Privy Council."—[ Mr. King.]

    Those Instructions are out of order, because the Bill is not of a nature to fall easily into two parts. It would seem to require entire redrafting.

    The purpose of the Bill is set forth in the Memorandum which is printed on the face of the Bill. In that Memorandum there is quoted a resolution which was passed by the Imperial Conference in 1911.

    The hon. Member is not entitled to open up the question of the Memorandum. It is a question of the procedure of this House as to whether the Instructions are in order. I took care to get the Speaker's own words on the question, and they are those which I have delivered to the House.

    Bill considered in Committee.

    [Mr. MACLEAN in the Chair.]

    Clause 1—(Additional Lords Of Appeal)

    His Majesty may appoint two Lords of Appeal in Ordinary under Section six of the Appellate Jurisdiction Act, 1876, in addition to the four Lords of Appeal in Ordinary whom he may appoint under Sections six and fourteen of that Act and the law relating to the appointment and qualifications of Lords of Appeal under the said Section six, and to their duties and tenure of office, their rank, and otherwise, shall apply to any Lord of Appeal appointed under this Section.

    I beg to move to leave out the words "two Lords," and to insert instead thereof the words "one Lord."

    I think the appointment of one Lord under this Bill would be quite sufficient. One Lord would suffice to raise the quorum for all practical purposes. It is only very seldom that a proper quorum cannot be obtained. In view of the alterations in the law that will be necessary when the Royal Commission report, I would ask the Committee not to act too hastily now, and to be content with the appointment of one Law Lord.

    It is quite true that the Royal Commission is sitting, though I do not profess to know when or what it is going to report. But it is not inquiring into this matter at all. It is quite true that we are getting some general recommendations which may be generally adopted when we see them. But what we are doing here is redeeming the pledge given by the Government to the Dominions at the Imperial Conference in 1911, when this matter was discussed at considerable length. At the conference the Government pledged itself to appoint two new Law Lords. We want two to have a sufficient number of Law Lords to have two Courts, the Judicial Committee, and also the House of Lords. I hope that the hon. Member will not persist in this Amendment in view of the pledge which he has already given.

    11.0 P.M.

    I hope that my hon. Friend will stick to the Amendment. One evil is very much better than two. The right hon. Gentleman alluded to the Royal Commission, and said that he did not know what they were going to report. I do not suppose that they know themselves. What is proposed is to appoint two judges more, so that the others can have more holidays. These judges are not wanted at all. They are squandering the people's money, and at the very most we ought to have only one of them. We know that once these things are begun they are never reduced. We ought to have had the Long Vacation question settled and other reforms carried out before doing anything of this at all. There are to be two Lords. Who are going to be appointed? The hon. Member for East St. Pancras told me that so far as he understood, they were already selected and settled upon. The idea of rushing the Bill now is to put them in their places and to give them a good long holiday and spend our money.

    I support this Amendment. On the occasion of the Debate on the Financial Resolution I said the object of the Bill was to facilitate a larger quorum of the Judicial Committee of the Privy Council to sit on oversea cases. What is the number of those who can sit on the Judicial Committee of the Privy Council? I asked the Chancellor of the Exchequer how many could be called upon to sit in the Judicial Committee of the Privy Council. His answer was:—

    "There are sixteen members of the House of Lords who are qualified to sit to hear appeals in the House of Lords, and fourteen who can sit on the Judicial Committee. Ten of these receive salaries of an aggregate amount of £60,600, and five draw pensions amounting in all to £21,000 one receives no payment from British funds."
    This is a total of £81,000; and pensions, £7,500, make £89,000. This Bill is about to add £12,000 more. I was dealing with the point of how many could be called upon to sit on the Judicial Committee.

    Who can sit on the Judicial Committee. Apart from the fourteen, there are twenty-three who now hold or have held judicial positions, and who also could be called upon to form the quorum. That quorum is called upon to sit very few days in the year. In 1910, sat 98 days; in 1911, they sat 101 days, and in 1912 they sat 101 days. Those figures were given by the Attorney-General himself in answer to a question. So that fourteen members of the House of Lords can sit, and there are twenty-three judges who may sit, making thirty-seven judges who are able to sit on this quorum and to constitute this quorum for seventy-eight days in the year. The Government do not think that sufficient. They want another two, and they bring in this measure and insist on it being put through. The Attorney-General referred to the pledge of the Government, but that, of course, was subject to the sanction of the permission of the House, and in this Bill the House is being asked to consent to or dissent from the promise they have given. All that the Dominions asked was for a more substantial Court, or that more judges should sit on their cases when they came from the other end of the world than have sat in their own Dominions. A quorum can quite readily be got for seventy-eight days of the year out of those at present available. I venture to think when the facts are known in the Committee, they will back up the Amendment.

    I do not understand why the Government want to steam roll their own supporters, and why at the end of the Session they are pushing through measures against their own supporters who have loyally supported them for the greatest part of the Session. When we came to deal with the King's Bench the Government met those in opposition by the appointment of a Royal Commission to consider the problem there and report on the subject. We are now asked to appoint two additional judges without any information at all as to the hours of those judges or other particulars. The holidays in this case are longer than in that of the King's Bench, and we have no time-table before us. I think it is wrong for the Government to cast aside in effect the promise they have made in respect of the reform of the judicial system. The appointment of one Law Lord would have the effect of carrying out the proposal of the Government which is bound with the pledge the Prime Minister gave to the Colonial Conference to appoint two judges of the highest or finest quality. I do not know what they mean by highest or first quality.

    The Government are not treating their Friends well in this matter. They are going to carry the Bill by steam-rolling their own supporters. That will not conduce to the passage of a number of other Bills which they want to get through. If my hon. Friend goes to a Division I shall support him.

    A consideration which ought to affect our minds in coming to a decision on this announcement is the fact that this is a temporary measure. It is true that the pledge in fulfilment of which the Bill has been brought in was given in 1911, but we have the assurance of the Prime Minister that next Session the Government is going to bring in proposals for the reform of the House of Lords, for the entire reconstitution of that Assembly. If this is done, the House of Lords as at present organised for judicial purposes must also be vitally changed. [HON. MEMBERS: "Why"] Obviously so because its judicial character is to a large extent determined by its constitution as a branch of the Legislature.

    The question before the Committee is whether one or two judges shall be appointed.

    My argument is that if this is a temporary measure we ought to limit the number of vested interests created by it. Its temporary character is a consideration which weighed very much with the hon. Member for East St. Pancras (Mr. Martin) in withdrawing his opposition to the Bill. He was closeted with the Lord Chancellor, who told him that it would certainly be a temporary measure because of the reconstitution of the House of Lords.

    The hon. Member cannot go into that question now. The question before the Committee is two judges or one.

    If next year the appellate tribunals of this country and of the Empire are to be recognised, it is obviously our duty to see that in a temporary measure we do not create any more vested interests than we can help. If you appoint a larger number than is necessary you to a certain extent prejudice your powers of reform when the reconstitution of the tribunal takes place.

    There is another substantial reason why we should limit the choice of these Lords to one. Everyone knows that in these appointments politics to a large extent count more than the legal knowledge of the gentleman appointed. Rumour, it is well known, as already pointed to certain gentlemen to occupy these posts. One is to come from the Labour party and the other from the Irish party. [HON. MEMBERS: "Name."]

    I hope when I have finished that the hon. Member will get up and give us his reasons for that statement, so that we may be enabled to make up our mind on this important point. I shall be interested, as one who knows nothing about law, to see whether in the selection of one Lord the man's legal knowledge weighs more than his politics. I prefer to put the Government in a position to appoint a man because of that knowledge, and not to find them in the easy position of appointing two men because of their poli- tical opinions to the exclusion of their legal knowledge.

    The right hon. Gentleman the Attorney-General did not when I sat down make the statement I expected. The hon. Gentleman the Member for East St. Pancras went about the House shortly before he went away showing one Member after another a statement of promises which had been given to him by the Lord Chancellor. On the strength of these he felt so contented that he left the House before this Bill came on. I object to our discussing the Bill this time of night—

    That has nothing to do with the Amendment: it is a question of one judge or two.

    Most respectfully and seriously I would point out that some pledges and promises have been given in another place, and to one hon. Member of this House, that ought to have been given from the Treasury Bench to the whole Committee. We are at a distinct advantage.

    This is the second time I have had to call the hon. Member's attention to the fact that he is going outside the area of discussion.

    The Attorney-General has not answered my question as to the days sat and the amount of work done by the judges?

    It is difficult for me to say how many days, as I have not the figures before me, but the judges sit continuously until the work is disposed of. That work is very arduous, and it involves not only a great deal of time in Court but a very large amount of time outside. A judge must very carefully prepare his knowledge of the various systems of law of the different countries. Anyone who is familiar with the work of the Judicial Committee of the Privy Council and also of the House of Lords will feel a great deal of admiration for the way in which the judges discharge their duty. They do sit, in fact, until they dispose of the effective cases, or practically all the effective cases, brought before them. Anyone who thinks their labours are easy makes a very great mistake.

    There cannot be to get at the sittings you must add the much in the way of arrears now, because they have been sitting continuously in order to get through with the work.

    The Attorney-General ought to be able to tell us how many days they sit. He gave the figures to my hon. Friend.

    That is not really accurate. The hon. Member in the answer he read purported to give the number of days the judges sit in the Privy Council, but he left out of consideration altogether that some of the judges sit on other days in the House of Lords, so that if you want

    Division No. 274.]

    AYES.

    [11.24 p.m.

    Abraham, William (Dublin, Harbour)Gill, A. H.Meehan, Patrick J. (Queen's Co., Leix)
    Acland, Francis DykeGilmour, Captain JohnMolloy, Michael
    Allen, Rt. Hon. Charles P. (Stroud)Gladstone, W. G. C.Morgan, George Hay
    Anson, Rt. Hon. Sir William R.Goldsmith, FrankMorrison-Bell, Capt. E. F. (Ashburton)
    Asquith, Rt. Hon. Herbert HenryGoldstone, FrankMount, William Arthur
    Baird, John LawrenceGreig, Colonel J. W.Muldoon, John
    Baker, H. T. (Accrington)Griffith, Ellis J.Munro, R.
    Baker, Joseph Allen (Finsbury, E.)Guest, Major Hon. C. H. C. (Pembroke)Murray, Captain Hon. Arthur C.
    Balfour, Sir Robert (Lanark)Guest, Hon. Frederick E. (Dorset, E.)Neilson, Francis
    Banbury, Sir Frederick GeorgeGuinness, Hon. Rupert (Essex, S.E.)Nolan, Joseph
    Barlow, Montague (Salford, South)Gulland, John WilliamO'Brien, Patrick (Kilkenny)
    Barnston, HarryGwynn, Stephen Lucius (Galway)O'Connor, John (Kildare, N.)
    Beauchamp, Sir EdwardHackett, JohnO'Connor, T. P. (Liverpool)
    Beck, Arthur CecilHall, Frederick (Dulwich)O'Doherty, Philip
    Bird, AlfredHamilton, C. G. C. (Ches., Altrincham)O'Donnell, Thomas
    Boland, John PiusHarcourt. Rt. Hon. Lewis (Rossendale)O'Dowd, John
    Bowerman, C. W.Harcourt, Robert V. (Montrose)O'Kelly, Edward P. (Wicklow, W.)
    Boyton, JamesHarmsworth, Cecil (Luton, Beds.)O'Malley, William
    Brady, Patrick JosephHarvey, T. E. (Leeds, West)O'Neill, Dr. Charles (Armagh, S.)
    Bryce, J. AnnanHayden, John PatrickO'Shaughnessy, P. J.
    Burke, E. Haviland-Hayward, EvanO'Shee, James John
    Burns, Rt. Hon. JohnHazleton, RichardO'Sullivan, Timothy
    Buxton, Rt. Hon. Sydney C. (Poplar)Henry, Sir CharlesPalmer, Godfrey Mark
    Carr-Gomm, H. W.Hibbert, Sir Henry F.Parker, James (Halifax)
    Cassel, FelixHigham, John SharpParry, Thomas H.
    Cecil, Lord Hugh (Oxford University)Hills, John WallerPearce, Robert (Staffs, Leek)
    Cecil, Lord R. (Herts, Hitchin)Howard, Hon. GeoffreyPearce, William (Limehouse)
    Chaloner, Colonel R. G. W.Hughes, S. L.Pease, Herbert Pike (Darlington)
    Chancellor, Henry GeorgeIllingworth, Percy H.Phillips, John (Longford, South)
    Churchill, Rt. Hon. Winston S.Isaacs, Rt. Hon. Sir RufusPollock, Ernest Murray
    Clancy, John JosephJohn, Edward ThomasPonsonby, Arthur A. W. H.
    Clive, Captain Percy ArcherJones, Rt.Hon.SirD. Brynmor (Sw'nSea)Pretyman, Ernest George
    Clough, WilliamJones, J. Towyn (Carmarthen, East)Price, C. E. (Edinburgh, Central)
    Collins, G. P. (Greenock)Joyce, MichaelPryce-Jones, Col. E. (M'tgomy B'ghs)
    Condon, Thomas JosephKeating, MatthewRaffan, Peter Wilson
    Cotton, William FrancisKelly, EdwardRawlinson, John Frederick Peel
    Craik, Sir HenryKerry, Earl ofRea, Walter Russell (Scarborough)
    Crumley, PatrickKilbride, DenisReddy, Michael
    Cullinan, JohnLambert, Rt. Hon. G. (Devon, S.Molton)Redmond, John E. (Waterford)
    Davies, David (Montgomery Co.)Lambert, Richard (Wilts, Cricklade)Redmond, William (Clare, E.)
    Davies, Sir W. Howell (Bristol, S.)Lardner, James C. R.Redmond, William Archer (Tyrone, E.)
    Delany, WilliamLewis, Rt. Hon. John HerbertRoberts, Charles H. (Lincoln)
    Denman, Hon. R. D.Lewisham, ViscountRoberts, G. H. (Norwich)
    Devlin, JosephLloyd, George Butler (Shrewsbury)Robertson, J. M. (Tyneside)
    Dickson, Rt. Hon C. ScottLecker-Lampson, G. (Salisbury)Robinson, Sidney
    Dillon, JohnLundon, ThomasRoche, Augustine (Louth)
    Doris, WilliamLyell, Charles HenryRoe, Sir Thomas
    Duffy, William J.Lynch, A. A.Ronaldshay, Earl of
    Duke, Henry EdwardLyttelton, Hon. J. C. (Droltwich)Royds, Edmund
    Duncan, C. (Barrow-in-Furness)Macdonald, J. Ramsay (Leicester)Runciman, Rt. Hon. Walter
    Esmonde, Dr. John (Tipperary, N.)McGhee, RichardSamuel, Rt. Hon. H. L. (Cleveland)
    Fell, ArthurMacnamara, Rt. Hon. Dr. T. J.Samuel, Samuel (Wandsworth)
    Ferens, Rt. Hon. Thomas RobinsonMacNeill, J. G. Swift (Donegal, South)Sanders, Robert Arthur
    Ffrench, PeterMacpherson, James IanScanlan, Thomas
    Field, WilliamMacVeagh, JeremiahScott, A. MacCallum (Glas., Bridgeton)
    Fitzroy, Hon. Edward A.McKenna, Rt. Hon. ReginaldSheehy, David
    Fletcher, John SamuelMasterman, Rt. Hon. C. F. G.Shortt, Edward
    George, Rt. Hon. D. LloydMeagher, MichaelSimon, Rt. Hon. Sir John Allsebrook
    Gibbs, George AbrahamMeehan, Francis E. (Leitrim, N.)Smyth, Thomas F. (Leitrim, S.)

    to get at the sittings you must add the number of sittings in the House of Lords as well.

    That is only another reason why we should not go on with this Bill to-night, and it is a monstrous and scandalous state of things that we should spend the taxpayers' money without proper information.

    Question put, "That the words 'two Lords stand part of the Clause."

    The Committee divided: Ayes, 200; Noes, 20.

    Stanley, Hon. G. F. (Preston)Waring, WalterWolmer, Viscount
    Stewart, GershomWebb, H.Wood, John (Stalybridge)
    Strauss, Edward A. (Southwark, West)Wheler, Granville C. H.Wood, Rt. Hon. T. McKinnon (Glasgow)
    Talbot, Lord E.White, J, Dundas (Glasgow, Tradeston)Younger, Sir George
    Taylor, Thomas (Bolton)White, Sir Luke (Yorks, E.R.)Yoxall, Sir James Henry
    Tennant, Harold JohnWhite, Patrick (Meath, North)
    Thorne, G. R. (Wolverhampton)Wilson, Hon. G. G. (Hull, W.)TELLERS FOR THE AYES.—Mr. W. Bonn and Mr. W. Jones.
    Toulmin, Sir GeorgeWing, Thomas Edward
    Trevelyan, Charles Philips

    NOES.

    Adamson, WilliamMarkham, Sir Arthur BasilWatt, Henry A.
    Booth, Frederick HandelMorrell, PhilipWedgwood, Josiah C.
    Bridgeman, W. CliveMorton, Alpheus CleophasWilliams, J. (Glamorgan)
    Craig, Herbert J. (Tynemouth)Munro-Ferguson, Rt. Hon. R. C.Wilson, W. T. (Westhoughton)
    Gretton, JohnOuthwaite, R. L.
    Hodge, JohnRichardson, Thomas (Whitehaven)TELLERS FOR THE NOES.—Mr. King and Mr. Pringle.
    Hogge, James MylesSmith, Albert (Lancs., Clitheroe)
    Lawson, Sir W. (Cumb'rid, Cockerm'th)Thorne, William (West Ham)

    I beg to move to leave out the words "under Section six" ["His Majesty may appoint two Lords of Appeal in Ordinary under Section six"] and to insert instead thereof the words "for the purposes."

    This is a first of a series of Amendments designed to embody in the terms of the Bill the words or some of the words of the Memorandum which appears on the face of the Bill. I would ask the Committee to remember that urgency is being claimed for the Bill because it is designed to give effect to a resolution which was passed at the Imperial Conference. That resolution appears in the Memorandum which is printed with the Bill.

    "The proposals of His Majesty's Government then were 'that they should add to the highest court of appeal, both for the United Kingdom, and the Dominions, and Colonies, by selecting two English judges of the finest quality; that the quorum should he fixed at, say, five.'"

    That is the promise which has been given to the Colonies and which this Bill is designed to fulfil, and urgency is claimed for it by the Prime Minister on those very grounds. When the question whether or not this Bill should be dropped came up the other day the Prime Minister, in refusing to drop the Bill, used these words:—
    "The Appellate Jurisdiction Bill is introduced in response to a definite pledge given by this country at the Imperial Conference in 1911, to the representatives of our Dominions."
    It is because that promise has been given to the Dominions urgency is claimed for this Bill. I would respectfully suggest to the Committee that the Colonies are not at all concerned with the House of Lords as a judicial tribunal. What they are con- cerned with is the Judicial Committee of the Privy Council before which body their appeals come. Their appeals are not taken by the House of Lords, and what they are anxious to have is an increase in the quorum of the Judicial Committee of the Privy Council, and it is for the purpose of providing an additional personnel, in order that that quorum may be constituted that this Bill has been brought forward. That is the whole and sole excuse for this Bill. So far as I am concerned if words are drafted into the Bill to secure the fulfilment of the promise made to the Colonies I shall be entirely satisfied. But we think that the Government are using the promise they made to the Colonies of a larger quorum of the Privy Council as an excuse for creating, what I am afraid they have always been rather too anxious to create, more judicial appointments of a very costly character—a proceeding in which they are sure of the support of eager lawyers on both sides of the House. I will ask the Government when they steamroller their faithful supporters here as they are doing to-night—and in the country as well—

    I have read through Section six, which the hon. Member proposes to leave out, and I really cannot connect the hon. Member's remarks with that Section.

    I understood you to rule that my longer Amendment, which appears beneath the one I am now proposing, is consequential, and in moving to omit "under Section six" I was dealing with both Amendments together.

    But I can see no relevance in the arguments the hon. Member was using to the Section he was, moving to omit.

    I understood you to rule I should not be able to move my Amendment lower down unless I so proposed to omit "under Section six." I do not wish to make a speech on both Amendments, and, therefore, I was trying to deal with both in one speech.

    But I have been unable to connect the remarks of the hon. Member with the Amendment.

    Is not my hon. Friend's Motion a proposal to substitute wider words than those embodied in Section six, and is he not therefore in order in explaining the wider terms he proposes to introduce into the Bill?

    The hon. Member is entitled to give reasons for leaving out "under Section six," and he can also give reasons for substituting the Amendment which stands in his name.

    As I understand your ruling, I am to confine myself to the Amendment which stands lower down on the Paper—to leave out from the word "Act," to the end of the Clause, and to insert instead thereof the words—

    "Provided that only judges who shall have already retired or become entitled to retire upon the maximum judicial pension shall be eligible for appointment under this Section, and that an additional Lord of Appeal in Ordinary so appointed shall not be entitled by way of salary to any greater yearly sum than that required to make up the difference between his pension as a judge and the salary of a Lord of Appeal as fixed by Section six of the Appellate Jurisdiction Act, 1876."
    That proposal is founded on hopes we all entertain. I think I am entitled to resent the imputation cast upon me by the Attorney-General that as a member of the Royal Commission I ought not to make any reference to the hopes which the House entertains regarding the Report that may be forthcoming from that body. My opposition to this Bill however is largely because the measure has been brought forward before the Royal Commission has reported. I think I am entitled to say that, on the evidence which has been printed and is public property, showing to what the Commission is directing its attention, we all hope that the outcome of the Report of the Commission will be that a retiring age limit may be placed upon the judges. If that were done we shall have provided a large staff of men eminently qualified to fill the posts which are created by this Bill. If you confine these appointments to ex-judges who are already in the enjoyment of a pension of £3,500 a year, you will, without reducing the salary payable to a Lord of Appeal in Ordinary, be able to satisfy the wants created by this Bill at a total cost of £5,000 a year, instead of £12,000 a year. My scheme shows the Committee an easy way of saving the country £7,000 a year. In the constituencies we are met most frequently by the cry, very often raised by Conservative candidates that this Government has gone out of its way to increase highly paid posts. I hope that upon this Amendment I shall have support of the hon. Baronet (Sir F. Banbury) who has made such a reputation for himself as an economist.

    On a point of Order. I understood that the hon. Member was moving the Amendment at the bottom of the page of the Amendment Paper.

    The hon. Member only indicated it for the information of the Committee.

    I hope my hon. Friend will not press this Amendment. We have been seeking that judges shall retire at the age of seventy, but here we are asked to take the view that when they have reached the age of seventy we should ask them to do something which they are physically unfit to do. We shall be defeating the very principle for which we have been contending, namely, that judges, like all other public servants, should retire at a definite age. It cannot be right to take them from the High Court, where they have had to attend to a totally different class of business.

    I should like to endorse the appeal of my hon. Friend. It is really impossible to give effect to this Amendment It is no doubt conceived in a spirit of economy and with a desire to effect some reform, but it would not be of the slightest use here. What is desired is to appoint judges to sit in the Judical Committee of the Privy Council on Appeals and also who can sit in the House of Lords so that you may draw on these two additional judges either for the one tribunal or the other according to which requires assistance most. You could not possibly appoint judges who have retired either because they are no longer fit to carry on their work, it may be because of age or because of weakness or some infirmity, or it may be because they think they have done their best work and that therefore they ought to retire. But the idea that in order to carry out the pledge given to the Imperial Conference in order to give them the best tribunal the British Empire can we should only give them the worn out judges in order to be able to get them at £2,500 a year instead of the salary which you pay the Law Lords is a proposition which I think my hon. and learned Friend will not on reflection ask the Committee to divide upon.

    I think the right hon. Gentleman and my hon. Friend (Sir A. Markham) have somewhat misconceived the position of my hon. Friend (Mr. Craig). It is quite true that for the purpose of the appointments to be made the state of things which he has in view does not exist and to that extent I do not think he should press his Amendment. But at the same time, in view of what is likely in the future when there is a compulsory age for retirement for Judges of the High Court it would be possible to recruit the Courts of Appeal from the ranks of the retired judges. If they have all retired at seventy it does not follow that they are all worn out judges. Many may be still at their best and it would not be proposed by my hon. Friend to put all these retired judges in the Court of Appeal. The proposal would only be that the Government should elect such of them as were distinguished judges. But in view of the fact that the appointments now to be made are appointments under the existing state of things my hon. Friend would be well advised to withdraw the Amendment.

    Amendment, by leave, withdrawn.

    I beg to move, after the word "rank" ["tenure of office, their rank"] to insert the words "salary and pension."

    I have an Amendment to leave out these words, and therefore I oppose this Amendment The effect of leaving the words out would be that the Lords to be appointed would not be, in regard to salary and pension, in the same position as regards Lords of Appeal at present in office. I think the new judges to be appointed should not be put in the same position as regards salary and pension as the Lords at present existing. I take up that position because of the Government's own attitude in their earlier dealings with this matter. Under Section 3 of the Bill brought in in 1911 the new Lords were to have £5,000 a year instead of £6,000, and under Section 7 the pension was to be £3,500. Under the Bill of 1912 also the salary was to be £5,000 and the pension £3,500. These Bills having been rejected, the proposal in this Bill is that the salary of each new Lord shall be £6,000. If these words are omitted it will be possible for the Treasury to pay the new Lords £5,000, and to correspondingly reduce the pension. What I wish to know is why the Government have changed their views as to the salary to be paid. I back up my Amendment by the views which the Government held for two years.

    I should like a promise from the Government. I am willing to be squared with a very small piece of bread if the Attorney-General will give it. I wish the hon. and learned Gentleman to give a promise on behalf of the Government that they will not grant a pension of £3,500 a year to judges who have only served eighteen months in the public service. A case of that kind happened three or four years ago. I cannot see that Ministers professing to represent a democratic Parliament could go on to any public platform in the country and defend the granting of such a pension to a judge who has served less than two years. Under the 1876 Act it is entirely in the discretion of the Government whether they will give pensions to judges or not. There is some time limit which the House could reasonably seek to impose on judges and if the Attorney-General would say that the Government would not grant a pension to any judge who has not had five or ten years public service that would satisfy at all events my objection.

    I would support the appeal of my hon. Friend the Member for Mansfield. I am confident from the way in which the hon. Member for East St. Pancras spoke to me that he had a definite pledge from the Lord Chancellor. It was all written down and was shown repeatedly to several Members on this side of the House. It is really very trying to us who are bearing the burden and the heat of the day if we cannot have at any rate some part of the pledge which has been given to a colleague of ours who has gone away on a holiday. I would appeal in the most serious manner to the Prime Minister who is present or to the Attorney-General to make public for the House what has been promised to the hon. Member for East St. Pancras.

    In response to the appeal of my hon. Friend the Member for the Mansfield Division I think that we shall be able to satisfy him—not in this Bill, but we shall no doubt very soon have the Report of the Royal Commission in which various matters such as pensions will be discussed or at any rate they will come up for review, and it is possible to say this: We shall be prepared to deal with this question of the pensions, I will not say upon the exact terms suggested of not giving a pension to a judge unless he serves ten years—

    I will not say any exact number of years, but we shall certainly consider the subject of the scale of pensions granted to judges when they have to retire after a very short time. It may happen sometimes that through some misfortune a judge may have to retire after a very short period, though it is of very rare occurrence. In my recollection it only happened once in circumstances very well known. The Government are going to consider that in the spirit in which my hon. Friend suggested it.

    12.0 P.M.

    Yes. It will apply to all judges. There is not a word about pension in the statement made to the hon. Member for East St. Pancras. If in order, I would be quite prepared to make a statement. I have already made one. I told the Committee a little while ago that the Privy Council and the House of Lords sat on and after the 1st August, and I am quite prepared to state what they did, but it really does not touch the question of pension. With regard to the question of an Imperial Court of Appeal, the statement was made that after the Second Chamber is dealt with that question will be taken up. I do not think that there will be any necessity for the retiring of judges and the appointment of new judges, The present judges will at least form the nucleus of an Imperial Court of Appeal. That is all I can say in regard to the matter. Reference has been made to the hon. Member for East St. Pancras (Mr. Martin), who was concerned with various questions, among them the right of barristers from the Dominions to appear before the House of Lords, and whether the House of Lords could grant that right without a statute. The Lord Chancellor expressed the opinion that the House of Lords could grant this right of audience without legislation. As head of the Bar I must reserve the rights of the Bar in reference to this matter. The Lord Chancellor also stated that the Privy Council would be ready to meet any requisition as to costs that is appropriate, and would make any necessary inquiry into the matter.

    I make the appeal that we should have done with any interview in which the hon. Member for East St. Pancras took part. The hon. Member has gone away, and it would appear that more importance is attached to him in his absence than when he was here.

    Amendment agreed to.

    I beg to move, after the word "pension," in the Amendment last inserted, to leave out the words, "and otherwise" ["and otherwise shall apply"].

    These words apply of course to an emolument in the form of each Lord of Appeal having a secretary at a salary of 400 a year. I understand that the present Lords of Appeal have each a secretary at £400 a year. I understand these words refer to this particular emolument and by my proposal the new Law Lords would not be entitled to have a secretary or amanuensis.

    My hon. Friend may rest content about the prospect of an amanuensis being appointed. There is no such thing in existence paid by the State. These words simply provide for anything that may escape attention and are intended to put the new Law Lords in exactly the same position as the other Law Lords who have not a secretary or amanuensis, and it certainly is not the intention to appoint a secretary or clerk for the new Law Lords.

    I do not persist with my Amendment, but from a reply either of the right hon. Gentleman or the Chancellor of the Exchequer I thought there was a clerk or amanuensis, but I am speaking from memory.

    Amendment, by leave, withdrawn.

    Amendment made: At the end of the Clause add the words, "Provided that the sum paid in salaries in any one year to the Lords of Appeal in Ordinary appointed under this Act shall in no case exceed £12,000."—[ Sir Rufus Isaacs.]

    I beg to move, after the words last inserted, to add the words, "Provided that the Lords of Appeal so appointed are under fifty-five years of age at the date of their appointment."

    In the course of an interview with the Prime Minister he indicated that this was the best Amendment of our stock. The Law Lords have to serve fifteen years before they are entitled to a pension, and that brings them to the age of seventy. In order to encourage them to retire at that age I move this Amendment. Everyone knows that judges remain on the bench much too long. The ages of judges are extraordinary. I find that on a certain date the ages of various judges were, eighty, sixty-eight, seventy-one, seventy-one, sixty-four, sixty-one, seventy-five, and so on. There was only one under fifty-five years of age, and he was fifty-one. The sitting on of judges drawing salary is an evil, and my Amendment is intended to meet it.

    This is an Amendment which my hon. Friend cannot expect us to accept. The question is being considered in relation to the King's Bench where I should have thought it had more application than in the Court of Appeal. You may have very excellent men over fifty-five years of age, and there is no reason why they should not be appointed. It is very difficult to say at what age a judge ceases to be able to perform his judicial functions. When my hon. Friend was referring to the ages of judges, every lawyer must have thought of one of the most distinguished ornaments the law has ever had in this country, Lord Halsbury, who at a very advanced age has done great service and continues to discharge judicial functions in a way that is the envy of all. [An HON. MEMBER: "He is a diehard."] I am not prepared to accept either this Amendment or that proposing that these judges should retire at seventy years of age. That question will have to be discussed when we get the Report of the Royal Commission, but I do not think such a limitation should be placed here for the first time. If anything of the sort were done it ought to be of general application, and not applied simply to the new judges hereunder appointed.

    Amendment, by leave, withdrawn.

    I beg to move, at the end of Clause, to add the words, "Provided that if disabled by permanent infirmity from the performance of the duties of their office the pension granted to such Lords of Appeal by way of annuity shall be in strict proportion to the number of years served in such office."

    The hon. Baronet the Member for Mansfield got a promise from the Attorney-General that his idea would be carried out. I desire that it shall be carried out fully. A judge is entitled to a pension after fifteen years service. We had the case quoted where a judge who had only had one or two years service was granted by the Government the full pension. No one objects to this particular judge getting the pension. He doubtless brought a medical certificate. But everyone who desires exemption from attendance at one or the other function knows how easy it is to get a medical certificate if ill. The principle of a full pension for less than full service is bad. If a judge serves one out of fifteen years he should get one-fifteenth of the full pension; if he serves two years he should get two-fifteenths, and so on.

    I do not suppose the hon. and learned Gentleman desires me to say more than that everything I replied to the hon. Baronet I would now apply to the Amendment of the hon. and learned Gentleman himself. The matter has been very fully discussed. I cannot commit the Government, and I would not commit myself, to the proposal put forward. I certainly do agree that this is a matter which might be considered, and which will be considered when we discuss the whole question.

    Pointed reference was made to me by an hon. Member who spoke of the case with which medical certificates were got. He failed to say how they were got. I would like to tell hon. Members for their information—

    May I ask the Attorney-General a question before my hon. Friend consents to withdraw his Amendment? What he has said is very good, but it would not apply to these two judges. These conditions would not be retrospective and these two judges would be subject to the same conditions as now exist. So that my hon. Friend's appeal with regard to these two judges is not covered by the Attorney-General's remarks.

    Question, "That those words be there added," put, and negatived.

    Clause 2—(Lords Of Appeal To Be Ex-Officio Judges Of Court Of Appeal)

    Every Lord of Appeal in Ordinary, whether appointed before or after the passing of this Act, who at the date of his appointment would have been qualified to be appointed an ordinary judge of the Court of Appeal, or who at that date was a judge of that Court shall be an ex-officio judge of that Court, but no such Lord of Appeal shall be required to sit and act as a judge of the Court of Appeal unless upon the request of the Lord Chancellor he consents so to do, and whilst so sitting and acting he shall rank therein according to his precedence as a peer.

    I beg to move in Clause 2 to leave out the word "whether" ["whether appointed before or after the passing of this Act."]

    I desire to limit to those appointed after the passing of this Act the privilege of being ex-officio judges of the Court of Appeal. There are a number of consequential Amendments.

    As I understand my hon. Friend wishes to secure that only the new Law Lords shall be ex-officio members of the Court of Appeal. I do not quite understand why he wishes that because the whole object we have in view is that the Law Lords should be able to sit in the Court of Appeal. You could not accomplish that unless you passed this Clause. I hope my hon. Friend will not persist in this Amendment.

    Question, "That the word 'whether' proposed to be left out, stand part of the Clause," put, and agreed to.

    I beg to move to leave out the words "but no such Lord of Appeal shall be required to sit and act as a judge of the Court of Appeal unless upon the request of the Lord Chancellor he consents so to do, and whilst so sitting and acting he shall rank therein according to his precedence as a peer." I move this Amendment in order to obtain some explanation as to why these words have been put in.

    The object of inserting those words is to provide that no Lord of Appeal shall be required to sit and act as a judge of the Court of Appeal unless requested to do so by the Lord Chancellor and unless he consents to do so. From inquiries I have made I am able to state that there are no cases of judges having refused to do any of this work, and unless you have these words in the Bill the Law Lords could not sit in the Court of Appeal at all.

    Amendment, by leave, withdrawn.

    Question, "That the Clause be added to the Bill," put, and agreed to.

    Clauses 3 and 4 added to the Bill.

    New Clause—(Salaries And Pensions Of Lords Of Appeal In Ordinary)

    "Section 6 of the Appellate Jurisdiction Act, 1876, shall, as respects any Lord of Appeal in Ordinary appointed after the passing of this Act, have effect as if the amount of the salary mentioned therein were £5,000 instead of £6,000, and Section 7 of the same Act shall, as respects any Lord of Appeal so appointed, have effect as if the amount of pension therein mentioned were £3,500."

    Clause brought up, and read the first time.

    On a point of Order. I wish to ask whether this new Clause is in order? We have already, in an earlier Clause, provided that the salary and pension shall be the same as that which is provided under Section 6 of the Appellate Jurisdiction Act, 1876, and, therefore, it cannot be in order to provide in a new Clause that the salary should be £5,000 instead of £6,000.

    I think that is so, and the Clause moved by the hon. Member is not in order.

    Bill reported, with Amendments; as amended, considered; read the third time, and passed.

    Telegraph (Money) Bill

    Bill read the third time, and passed.

    Public Works Loans (Remission Of Debts)

    Resolution reported, "That it is expedient to authorise the remission of arrears of principal and interest due to the Public Works Loans Commissioners in respect of Eyemouth Harbour and of certain claims under the Drainage (Ireland) Act, 1842, in pursuance of any Act of the present

    Session relating to Local Loans.—[ Mr. Gulland.]

    Resolution agreed to.

    Public Works (Loans) Bill

    Considered in Committee, and reported without Amendment.

    Question, "That the Bill be now read the third time," put, and agreed to.

    Bill read the third time, and passed.

    The remaining Government Orders were read and postponed.

    Whereupon Mr. DEPUTY-SPEAKER, pursuant to the Order of the House of 22nd July, proposed the Question, "That this House do now adjourn."

    Question put, and agreed to.

    Adjourned accordingly at Twenty-five minutes before One o'clock a.m., Tuesday, 12th August, 1913.