House of Commons
Thursday, May 17, 1917
Private Business
Bristol Water Bill,
Levinstein (Railways) Bill,
Read the third time, and passed.
Mansfield Railway Bill [Lords],
Read the third time, and passed, with Amendments.
Port of London Authority (Various Powers) Bill,
Read the third time, and passed.
South Staffordshire Mond Gas (Power and Heating) Bill [Lords],
Yorkshire Registries (North Riding) Bill [Lords],
Read the third time, and passed, with Amendments.
Barrow-in-Furness Corporation Water Bill,
Blackpool Improvement Bill,
As amended, considered; to be read the third time.
Land Drainage (Swaffham) Provisional Order Bill;
"To confirm a Provisional Order under the Land Drainage Act, 1914, relating to the Swaffham and Bottisham Drainage District, in the county of Cambridge," presented by Sir RICHARD WINFREY; read the first time; and referred to the Examiners of Petitions for Private Bills, and to be printed.
Land Drainage (Ewerby) Provisional Order Bill,
"To confirm a Provisional Order under the Land Drainage Act, 1861, in the matter of a proposed drainage district in the parish of Ewerby, in the county of Lincoln (Kesteven Division)," presented by Sir RICHARD WINFREY; read the first time; and referred to the Examiners of Petitions for Private Bills, and to be printed.
Juvenile Education (Departmental Committee)
Copy presented of Final Report of the Departmental Committee on Juvenile Education in relation to employment after the War, Vol. II., Summaries of Evidence and Appendices [by Command]; to lie upon the Table.
Foreign Jurisdiction Act, 1890
Copy presented of Two Orders in Council, dated 10th May 1917, made under the Act [by Act]; to lie upon the Table.
Imperial War Conference, 1917
Copy presented of Extracts from Minutes of Proceedings and Papers laid before the Conference [by Command]; to lie upon the Table.
Oral Answers to Questions
War
Greece
asked the Under-Secretary of State for Foreign Affairs whether, in view of the entry of America into the War and the change of Government in Russia from Imperialism to Republicanism, the Entente Powers will now place obstacles in the way of M. Venizelos when he proceeds to give effect to the resolutions adopted by mass meetings of Greeks in France and in America urging him to proclaim the Republic of Greece?
The hon. Member's question appears to contain implications which are unjustified. I cannot, of course, commit the Allied Governments to any line of conduct based upon hypothetical action of the nature indicated.
Will the Noble Lord kindly point out what implications there are which are unjustified?
I think all implications are unjustifiable.
Skin Trade (Ireland)
asked the Chief Secretary for Ireland whether, in view of the fact that the export of sheep and lamb skins and other hides from Ireland is prohibited, he will see that facilities are given to enable the dressing and manufacture of these hides to be carried out in Ireland; and whether he is in a position to make any statement as to what effect the Order prohibiting export has had on the skin trade in Ireland?
I shall be glad to consider any particulars which may be furnished me of lack of facilities for the dressing and manufacture of hides in Ireland. I am told in various quarters that the prohibition of export has been advantageous to fellmongers in Ireland.
is the right hon. Gentleman aware that people formerly engaged in the export of hides are willing to undertake the manufacture, but were refused a licence by the Treasury Committee?
I am not answerable for the decisions of the Committee.
Will the right hon. Gentleman use his influence with them in order to get consent to this manufacture?
I do not know that I have any.
Chemists' Assistants (Ireland)
asked the Chief Secretary if his attention has been drawn to the rates of wages paid to chemists' assistants in Ireland; if he is aware that these men work from 8.30 a.m. to 10 p.m. for 25s. to 30s. per week in shops which hold Government contracts; and if he will recommend to the Government the advisability of forming a wages board to deal with this and other cases of underpaid workers?
My right hon. Friend has asked me to answer this question. The question of extending the scope of the Trade Boards Act is engaging the attention of the Ministry of Labour, and inquiries are being made into the conditions prevailing in a number of trades to which the application of the Act has been sug- gested. In this connection the case mentioned in the question will receive consideration.
Industrial Unrest (Ireland)
asked the Chief Secretary for Ireland if his attention has been drawn to the number of strikes, lock-outs, and disputes in Ireland; if he is aware that all are in reference to inadequate wages; if he will see that a committee of investigation shall be appointed to inquire into the merits of the disputes, and that they be empowered to recommend a suitable wage; if he is aware that a dispute provoked by the Dublin Port and Docks Board with their employés has spread to other engineering firms; and if, to prevent further disputes, he will see that a wages board be immediately appointed for Ireland?
I am aware that there have been a number of difficulties arising in Ireland in connection with applications for increased wages, and that these have in some instances resulted in stoppage of work. In a number of cases the Chief Industrial Commissioner has appointed an arbitrator to inquire into and to determine the difference, and the services of the Chief Industrial Commissioner's Department are at the disposal of the parties in the case of such disputes should they desire to avail themselves of them. Information which I have received from Dublin to-day, leads me to hope that the strike of transport workers which involves about 400 shipping employés will be amicably settled.
Deportees from Ireland
asked the Chief Secretary for Ireland, whether Senmas Doherty, Padraic O'Maille, Sian Murthuile, Dr. M'Cartan, and Darrel Figgis, interned at Fairford, who recently gave themselves leave of absence to attend to matters of political importance in Ireland, have now returned to this country.
The police are not aware of the present whereabouts of the men named.
Food Supplies
Royal Proclamation (Ireland)
asked the Chief Secretary to the Lord Lieutenant of Ireland whether he will ascertain what publicity was given to the Royal Proclamation enjoining economy in foodstuffs in Ireland; is he aware that the Proclamation was not read, as directed, in the places of worship of all religious denominations; and if he will say what measures he proposes to take to make known in Ireland the pressing need for economy in bread and other foodstuffs?
Copies of the Proclamation were posted up at police barracks, courthouses, and other public places, and copies were sent to Ministers of religion throughout Ireland. I am informed that the Proclamation was not read in all places of worship, but the other means of publication adopted appear to be sufficient.
Is the right hon. Gentleman aware that it was extensively read, and that last Sunday it was read in St. Patrick's Cathedral, Dublin, when I was there?
I am aware the Proclamation has been very extensively read, and I am sure it is fully known.
Likewise in reference to this Proclamation, is the right hon. Gentleman engaged in endeavouring to find food for people in Ireland who are suffering from shortage of food?
The fact that you must not waste food is brought home very vividly to the minds of many people in Ireland.
Fish
asked the Chief Secretary for Ireland whether he is now in a position to state whether the Railway Executive has decided to withdraw the discrimination made against consignors of fresh fish from Caherciveen; and whether the consignors will have the same facilities as formerly in view of the necessity of procuring all the available supplies of fish to make up for the shortage in cereals and potatoes?
Some delay in communicating the decision of the President of the Board of Trade in this matter appears to have occurred, but as I stated on Monday my right hon. Friend has directed the withdrawal of the regulations requiring prepayment.
Can the right hon. Gentleman say whether that has actually come into operation, and that at the present moment fish can be sent from Caherciveen and other districts from the West of Ireland without the previous objection?
I am not sure what steps are necessary for the withdrawal of a prohibition of this kind, but the President of the Board of Trade directed the withdrawal of it. I have been in communication with the Department, and I have no doubt dispatch is being used to secure the withdrawal coming into operation.
May I take it, if a railway company refuses to accept consignments from the date of the answer which the right hon. Gentleman gave the other day, that the railway will compensate traders whom they refuse to oblige?
That is too large an assumption.
Allotments
asked the Chief Secretary if he is aware that five labourers from Mooreville, Rathdowney, Queen's County, occupying cottages with ½-acre allotments attached, sent a memorial to the Abbeyleix District Council last January, which was forwarded to the Local Government Board, asking that they should be granted the extra ½acre allotments which the district council intended they should receive but which was subsequently taken from them by order of the County Court judge on appeal by the owner, Miss Wilson, who holds about 30 acres of land at Mooreville, which is let on the eleven months' grazing system; and what action the Local Government Board intend taking to provide these labourers with the additional ½-acre allotments?
I am informed that the facts are as stated in the question. The Local Government Board have no power to interfere with the decision of the County Court reducing the areas of the proposed cottage allotments in these cases, and any further steps towards providing the labourers with additional ½ acres must be taken by the rural district council in the first instance. Early this year the council endeavoured to obtain the additional land for the purposes of conacre by agreement with the owner, but they offered only 17s. 4d. per annum for each plot and made it a condition that the owner should fence off the plots from the remaining land and the negotiations failed.
Would the right hon. Gentleman consent to the Council having compulsory powers?
The hon. Gentleman had better put that question down.
Land Act, 1909
asked the Chief Secretary whether in view of the necessity of providing beyond possibility of fatal risks an adequate supply of food for this country and Ireland during the whole of 1918 and succeeding years, he will at once take steps to put into active operation the provisions of the Land Act of 1909, and strike out all the big estates, beginning with county Clare?
All practicable steps are being taken under the Act in question.
Has the right hon. Gentleman these two important facts in his mind: First of all, that there is a real possibility of famine in Ireland; and secondly, that he can obviate that danger by throwing open the large estates to the tenants?
All relevant facts are considered.
Spraying Material
asked the Vice-President of the Department of Agriculture (Ireland) whether he is aware that spraying material cannot be obtained by merchants in Ireland at the price stated by the Department of Agriculture; and whether, under these circumstances, he will cause a revised statement as to price to be issued, regard being had to the cost of transport?
As I stated in reply to the hon. Member on 7th March, the price fixed for copper sulphate for the present season is £50 per ton, free on rail at the makers' works, which is less than the prices previously ruling. The Department of Agriculture are not aware that merchants in Ireland experience difficulty in procuring supplies at the price mentioned. The price fixed for the sale of this article by retail to farmers is 6½d. per lb., which leaves an ample margin of profit to merchants, after defraying cost of transport. Sufficient supplies of spraying material to meet the requirements of Irish farmers for the coming season can at present be secured if orders are placed at once and immediate delivery taken.
Does not the right hon. Gentleman see that the profits in each case vary according to the distance of the place? That is eminently unfair to the traders and discourages them; and will he take steps in the matter?
If the hon. Gentleman will give me definite facts which would alter the general rules laid down in this case, I will see that they are considered at the Department of Agriculture.
Is the right hon. Gentleman aware that the price quoted—50 per ton—works out at such a rate that it does not at all encourage the retail dealer?
I am not sure about the calculation of my hon. Friend. But the system has now been in operation for ten or eleven weeks, and up to the present I have heard of no complaints. On the contrary, I have been assured that the Department of Agriculture in Ireland have dealt with a very difficult position in a satisfactory way.
Can the right hon. Gentleman assure the House of the important fact that the Government have taken steps to have a sufficient supply, whatever the price may be, of this spraying material?
I can assure the hon. Member that the very greatest care has been taken for the purpose.
Railway Facilities
asked the President of the Board of Trade whether he is aware that on two dates recently no trucks were available at Evesham and Pershore for the carriage of vegetable produce; that goods loaded at Pershore on the 1st March did not arrive at Cardiff till the 5th March; that two trucks loaded on the 1st May did not arrive in London till late in the day on the 3rd instant, so that the goods were too late for the market and realised a loss of 50 per cent.; that a truck of vegetables loaded at Pershore on Thursday, 8thMarch, did not arrive at Nantymoel until Monday, 12th March, so that the produce was wasted; and whether he can undertake that steps will be taken to prevent these losses in future?
My right hon. Friend has forwarded me a communication he has received in regard to these and other matters, which I will bring to the notice of the Railway Executive Committee.
asked the Secretary to the Board of Trade whether he is aware that within the last two weeks a train-load of green bacon had to be transferred from the Great Eastern Railway goods depot to Messrs. Cook's soap works at Bow to be made into soap on account of its having been allowed to go bad owing to the absence of facilities for handling goods for transport on the railway; and whether the Board of Trade intend to take any steps to ensure goods at the ports, railway termini, and other stations being handled in a more efficient manner, so that this waste may be avoided in future?
I will have inquiry made into this case, which had not previously been brought to my notice, and inform the hon. Gentleman of the result.
Is the hon. Gentleman quite satisfied with the present method of handling goods, or does he intend to have an investigation to see whether a better method can be adopted?
I am one of those who is never perfectly satisfied, but I believe that everything possible under the conditions is being done.
Sugar
asked the Parliamentary Secretary to the Ministry of Food if he has made any arrangements for a supply of sugar for the Dublin cooked food depots; if he is aware that for want of sugar the progress of this movement is seriously hampered; and if he will see that a sufficient supply will be sent to the depots immediately?
The Royal Commission on the Sugar Supply is making arrangements for supplying sugar through the National War Savings Committee, if and when it is available, to communal kitchens, of which these depots appear to be a type. The Committee is now engaged in investigating the various applications.
asked the Parliamentary Secretary to the Ministry of Food whether, in view of the difficulty experienced by small traders in Ireland in getting anything like an adequate supply of sugar for their customers, he will consider the advisability of opening provin- cial depots in that country, so as to ensure fairer distribution of the article than that obtaining at present?
The difficulties referred to in the question are not peculiar to Ireland, but it is hoped that these will be lessened, when, in due course, as is anticipated, supplies of sugar become more plentiful than they are at present. It is not thought necessary to open provincial depots in Ireland for the purpose of ensuring equitable distribution.
Will the hon. Gentleman say how much reserve sugar the Sugar Commission have under their control at the present moment in this country?
No, Sir; I think it would be most undesirable to make any statement on such a subject.
Is it not a shortage of shipping rather than of sugar which is creating the difficulty in Ireland?
I think it is common knowledge that there is a shortage of both.
Is the hon. Gentleman aware that in certain parts of Ireland, especially the West, people cannot get sugar at any price, and will some steps be taken to remedy that state of things?
I am quite conscious that there is, temporarily at any rate, a shortage of sugar throughout the United Kingdom, but I think there must be some sense of proportion in this matter; and it is well to remind the House that in the days of Crecy and Agincourt there was no sugar in this country at all, and we can only suppose that our ancestors got on perfectly well without it.
How much beer was there in this country in those days?
Fishing Licences (Hamoaze)
asked the Parliamentary Secretary to the Ministry of Food whether he is aware that the waters of the Hamoaze and the adjacent waters are abundantly supplied with fish which, if caught, would increase the supply of food for the nation, and that there are a number of men, pensioners and others, ineligible for the Army, who would be grateful for a licence to fish in these waters, but, although fully licensed to use their boats, yet are denied a licence to fish unless they are able to show that they were professional fishermen in pre-war times; and whether, in view of the importance of increasing the supply of food, he will take steps to induce the port authorities or others concerned to modify their restrictions and to issue licences to fish where such can be done without detriment to the national service?
The area in question is part of an important naval base and is subject to local Naval Regulations affecting small craft. I am in communication with the Admiralty on the general question of relaxation in the interest of fishing for food of Naval Regulations affecting fishing by persons other than professional fishermen.
Horses (Rationing)
asked the Parliamentary Secretary to the Ministry of Food whether horses used by farmers and the managers of estates in supervision on the land and in personal conveyance to market towns will be treated under Schedule I., Section 2, of the Regulations for feeding horses, as horses maintained and used exclusively for agricultural purposes?
The question in which category any particular horse or class of horses falls for the purposes of the Horses (Rationing) Order is a question of fact in each case. Horses such as those specified by the hon. Member could not, as a rule, be regarded as maintained and used exclusively for agricultural purposes. They would, however, probably fall within Schedule II. (c) if answering to the description of light horses used solely or mainly for business purposes.
Then I understand from that answer that a farmer using a horse for the purpose of supervising his land could not treat that horse the same as he would a horse actually engaged in ploughing?
No, Sir; there is a distinct difference between the two horses and the classes of work in which they are engaged. It is desirable to use such concentrated food as may be avail- able for horses engaged in hard physical work on a farm. That would not apply to such horses as my hon. Friend mentions.
Is it not hard physical work carrying a farmer round his farm?
Potatoes
asked the Secretary for Scotland whether 10,000 tons of potatoes which had been commandeered for the Army were transferred by the order of the War Cabinet to Scotland; and at what prices were these potatoes bought by the Army and sold by the Scottish Departments, respectively, who were the ultimate buyers, what profit was realised, and how it was disposed of?
It is the case that potatoes within the limit of 10,000 tons were transferred from the control of the Army Canteen Committee, as suggested in the question. About a third of that quantity has been delivered in Scotland. It is understood that the potatoes were bought for the Army at the current requisition prices. They have been made available in Scotland (along with supplies at different prices from other sources) at a flat wholesale rate of £13 per ton, which includes cost of transport and other necessary charges. The ultimate buyers are the consumers, who pay the ordinary maximum price sanctioned by the Food Controller. The Food Controller's special authority was obtained for any variation in the dealers' prices. It is not at present possible to estimate what profit, if any, will accrue. The object of the Government has been to avoid a loss rather than to realise a profit. The transaction was sanctioned in view of the very exceptional conditions of the Scottish potato market, which made it impossible to rely on the ordinary channels of supply and distribution
Questions
Dublin Rebellion (Compensation Claims)
asked the Chief Secretary for Ireland if he can state the cause of the delay in granting compensation to Mrs. Bridget Bealin, mother of Patrick Bealin, who was deliberately shot by the military authorities at 177, North King Street, Dublin, during the Easterweek rebellion; if he is aware that the late Government were convinced by the evidence given at the inquest that Bealin had no connection whatever with those concerned in the rebellion; if he is aware that Bealin's father died from the effects of shock caused by the murder of his son; that his son was the chief means of support of his parents, who were both old age pensioners, and that his mother has no other means of support than 5s. a week; and if he will see that ample compensation is granted to her without further delay?
The report of the Rebellion (Victims) Committee on this case is at present under consideration, and no avoidable delay wil occur in coming to a decision in the matter.
asked the Chief Secretary (1) if the Dublin Rebellion (Victims) Committee has recomended to the Treasury that a larger sum than £10 should be paid to Michael Moran, of 2, Hamilton Row, Dublin, for the loss of his wife, who was shot dead by the military in her own home during the rebellion; if the Committee did not recommend a larger sum than will he take such steps as may be necessary to ensure that Michael Moran is given an adequate sum of money for the loss of his wife, who was aged thirty-four and left four young children ranging from nine years to thirteen months old; (2) if the Rebellion (Victims) Committee recommended to the Treasury that a larger sum than £10 should be paid to Robert Condron, of 31, Upper Rutland Street, Dublin, for the loss of his wife, Margaret Condron, who was shot dead by the military in her home during the rebellion; if the Committee did not recommend a larger sum than £10, will he take such steps as may be necessary to ensure that Robert Condron is given an adequate sum of money for the loss of his wife, who was aged forty-four and who left two young children aged eight years and six years, respectively; (3) if the Rebellion (Victims) Committee recommended to the Treasury that a larger sum than £10 should be paid to Catherine Foster, of 18, Manor Place, Dublin, for the loss of her son, John Foster, aged three years, who was shot dead in his perambulator by the military in his mother's presence during the rebellion; if the Committee did not recommend a larger sum than £10, will he take such steps as may be necessary to ensure that Catherine Foster is given an adequate sum of money for the loss of her son; is he aware that the father of the child made the supreme sacrifice in France in defence of the Empire; is he aware that Mrs. Catherine Foster was in receipt of a pension of 18s. for herself and her two children, and that when her child was shot by the military the War Office reduced the pension to 15s.; and if he will say what steps he intends to take in the matter?
The payment which was authorised by the Treasury in these cases was that of a sum for funeral expenses. No other award was possible under the terms of reference to the Committee. I am not able to publish confidential communications made by the Committee to the Government.
May I take it that is the suggestion of the right hon. Gentleman, and not that of the Committee, as to the value of the loss sustained—£10?
The hon. Member need not assume anything of the kind, unless he wishes to make a gross mistake.
What is going to happen? What is this man to receive, who has two children left to mourn the loss of their mother, as a result of the military operations?
How did the Committee ascertain the grant of £10 to be the amount that this man should get?
The answer I have given dealt with that.
asked the Chief Secretary (1) if he is aware that on the 25th April, 1916, a number of persons charged with looting were taken to Store Street Station; that these persons were allowed to go free when the looted property was taken from them; if he will state what number of gold chains and other articles of jewellery were found on the prisoners; if he is aware that a side of bacon taken from one of the prisoners was cooked and eaten in the station; if he will state what inspector was in charge of the station at the time; if he saw that the property was properly accounted for; (2) whether he is aware that, during the disturbances in Dublin in Easter week, 1916, a considerable quantity of whisky and other intoxicating liquor, as well as tea, which had been looted, was brought into Store Street Station; if he will say what quantity of liquor and tea were surrendered by each constable, and how it was afterwards disposed of; and if any of the liquor was drunk in the station?
I have no information which supports the suggestions in the question; but if the hon. Member finds himself able to furnish me with definite particulars of the alleged misconduct, they will be investigated.
Will the right hon. and learned Gentleman even now consent to an inquiry into this matter in order not to cloak the officers responsible?
I do not know that there is any ground for suggesting that there is anything to be cloaked; certainly there is no ground for suggesting any desire to cloak. I have told the hon. Gentleman in the most definite way that if he will furnish particulars of any charges he desires to make, I will have them investigated.
Have not I repeatedly given him these statements, and am prepared to submit evidence of them if the right hon. Gentleman is prepared to hold an inquiry?
When evidence is produced it shall be considered.
But will you hold an inquiry?
Railway Facilities (Ireland)
asked the Chief Secretary for Ireland whether, seeing the financial losses entailed on summer resorts in the South of Ireland by the discontinuance of the usual railway excursions, which has resulted in no material aid in the prosecution of the War, he will advise the Railway Executive Committee to grant reasonable railway excursion facilities from 1st June to 30th September on the Irish railways?
The Irish Railway Executive Committee has at my request considered the possibility of granting excursion facilities such as are mentioned in the questions, and they inform me that in their opinion it would be imprudent to institute, or restore, any reduced fares which would have the effect of increasing the train mileage of the Irish railways. The companies are experiencing an increasing difficulty in obtaining a sufficient quantity of coal for their requirements and of the necessary material for the repair of their engines, and in view of the anticipated expansion of traffic in the coming autumn owing to the increased tillage throughout the country, the Executive Committee feels that every effort should be made to conserve both the coal supply and the locomotives of the companies.
Does the right hon. and learned Gentleman say that this applies to all places in Ireland?
It is not a Regulation that applies to any particular place. The object is economy of food, of materials, and of train mileage.
Will the decision be left with the Committees in charge of the various railways where there is sufficient coal to do the work?
The railways in Ireland, with, I think, the general approval of the people of Ireland, have been put under the control of the Railway Executive Committee, and it is left to the individual managers to take the proper course.
The right hon. and learned Gentleman has misunderstood my question. If the Committee in charge of the local railway, while carrying out the desires of the Executive for economy, feel that they can do this thing without injury in any way, will the Executive Committee consent to it?
The hon. Member had better communicate with the Railway Executive on the subject. I cannot pledge the Executive to any particular course of action.
Turf (Ireland)
asked the Chief Secretary whether, on an estate on which an established usage existed that the tenants were not allowed to cut turf, the fixing of fair rents under the Irish Land Acts has been held not to authorise the tenant to depart from the established usage; whether, in many such cases, landlords have brought proceedings to restrain waste by such tenants who cut turf on their holdings for their own consumption; and, if so, whether, in these and in similar cases, he will endeavour to obtain the necessary legislation to enable such tenants during the War to cut turf on their holdings in all cases where, in the absence of such legislation, the cutting of turf by the tenant would be illegal?
The fixing of a fair rent does not alter the right of the tenant as to cutting turf within the ambit of his holding for use on the holding. The Land Commission have no information as to the number of cases in which landlords have brought proceedings to restrain waste by turf cutting, but they inform me they have no reason for believing that such proceedings are numerous or general. Only a clear general necessity would warrant resort to legislative action in such a matter.
If figures are brought to the notice of the right hon. and learned Gentleman that there are a great number of such cases as I have suggested, will he take steps to get the necessary legislation?
I cannot promise in advance.
Then is the turf to remain in this country and the people to go without fires?
Prison Warders (Ireland)
asked the Chief Secretary if he has completed the inquiries promised by him to the deputation of Irish Members of Parliament relative to the paying allowance of existing Irish warders; and, if so, will he now state whether he is prepared to have these existing officers placed on the same pay and allowance as English warders, or what other action he is taking to improve their present miserable condition, especially the married warders, brought about by their present rate of pay and allowances?
I would refer the hon. Member to the answer I gave yesterday to the hon. Member for the Leix Division of Queen's County.
Censorship (Ireland)
asked the Chief Secretary what measures have been taken by the Censor in Ireland to prevent the result of the South Longford election becoming known in America, Canada, and Australia, or to misrepresent it in those countries; and, if a falsified Report has been prepared and issued, as was done in the case of the letter of the Bishop of Limerick, whether that Report will be presented to this House or made available to the public?
There is no foundation in fact for any of the suggestions in the question.
Magistracy (Ireland)
asked the Chief Secretary if he will say under what Statute, or in pursuance of what precedent, the Lord Chancellor of Ireland, at the instance of the English Government, has called upon Mr. Philip Baxter, J.P., of Ballinagh, county Cavan, to apologise for promoting a patriotic purpose with which the Lord Chancellor and the English Government disagree; what consequences follow Mr. Baxter's refusal to apologise; and whether the English Government expect to promote international affection by depriving a man of a position to which he has been duly elected by the people who, know him best?
Mr. Philip Baxter has been discharged from the office of a justice of the peace on account of conduct inconsistent with the oath of allegiance and the judicial oath under which the office of a justice is held. He was removed under the authority of the Local Government Act, 1898, Section 95.
The right hon. and learned Gentleman has not informed the House what the conduct was. Will it bear the light of day?
I do not see any inquiry in the question on that subject. I suspect the hon. Member knows.
Disorderly Procession (Dublin)
asked the Chief Secretary by whose order and for what reason a number of Dublin citizens, returning last Sunday from a religious service for the repose of the souls of James Connolly, Michael Mallin, and Sean Henston, shot by the military after having surrendered and laid down their arms, were attacked by the police; whether religious services for the intention mentioned are now illegal; whether the English Government think interference with them conducive to peace and international affection; whether any disturbance occurred last Sunday but that caused by the police; and whether the police authorities will be required to apologise for the unprovoked attack?
The facts in this case are that a superintendent and inspector of police, both elderly men and unarmed, were violently assaulted by members of a disorderly procession which it was their duty to disperse. The occurrence had no relation to any religious service.
Has the right hon. Gentleman got that information direct from the guilty police?
There were no guilty police in this case. They are the police who were knocked down with weapons and injured. They are the police to whom I have referred.
From whom has the information come?
It did not come from the people who assaulted them, or some other steps would have been taken.
His Majesty's Judges (Age Limit)
asked the Attorney-General whether he will consider the desirability of bringing into operation the recommendation of the Royal Commission on the King's Bench Division, 1914, with respect to the compulsory retirement of judges at the age of seventy-two or after more than six months' absence from the sittings of the Court, unless requested to continue in office, and also the further recommendation as to a scale of pensions to be allowed according to the periods of service?
Even on the Bench there would not appear to be unanimity in favour of this proposal, and I am, on the whole, of opinion that the moment is not opportune for dealing with the question.
Is the right hon. Gentleman aware that one of the best Lord Chancellors who ever existed, Lord Campbell, was appointed after he was eighty years of age?
If the right hon. Gentleman had an assurance that a Bill giving sanction to this would meet with the practically unanimous approval of the House, would he take action?
If my hon. Friend satisfies me that this proposal can be brought forward now with the unanimous support of the House, I will very carefully consider the suggestion he has made.
Railway Season Tickets (Interchangeability)
asked the President of the Board of Trade, whether he is aware that the Great Western Railway Company announced in its time-table for February that the holders of season tickets on the London and South-Western Railway between points also served by the Great Western Railway would be allowed to travel on the Great Western Railway; that during February such ticket holders were so permitted to travel in accordance with this announcement; that since then such permission has been withdrawn; that, as a result, traders and others living in Plymouth, Exeter, Yeovil, Weymouth, etc., are compelled to use one railway only, losing much time as a consequence; and, seeing that all railway companies have their dividends guaranteed during the War, will he approach these two companies and ask them to allow the season-ticket holders of either company to use both companies' reduced services?
The Railway Executive Committee found it necessary in March last to give public notice that applications by season-ticket holders wishing to use alternative routes could only be considered when the service by the route shown upon the ticket had been so reduced as to cause serious inconvenience to the holder. I am informed that the reduction in the train service with the places to which the hon. Gentleman refers has not been serious, and that under an arrangement of long standing inter-available season tickets can be obtained upon payment of an extra charge. In the circumstances it is not proposed to alter this arrangement.
Petrol Supplies
asked the President of the Board of Trade whether it is the rule of the Petrol Committee to grant no licence for petrol to any new applicant after the 24th January, 1917; and, if so, is it to be understood that this rule precludes any trader of the country from taking to motors instead of horses, especially in view of the fact that the Government are at present commandeering horses from traders?
In view of the necessity for restricting the consumption of petrol, the Petrol Control Committee announced in January last that they would not, except in special circumstances, be able to entertain applications for licences from new applicants. I am afraid that in present circumstances there is still greater necessity for maintaining this rule.
What course does the hon. Gentleman suggest that traders, who have been deprived of their horses, and who are desirous of taking to motors, are to adopt in order to get petrol?
I do not think it is competent for me to solve that problem.
Railway Wagons Pooling (Ireland)
asked the Secretary to the Board of Trade whether any decision has yet been come to as to the pooling of wagons in Ireland on the same basis that has been adopted in England; and, if not, whether he will state when this matter was first brought under the notice of the executive committee of the Irish railways?
The Irish Railway Executive Committee have for some time been closely considering the whole question of wagon supply in Ireland, but the precise nature of the steps to be taken in connection with this matter has not yet been finally settled.
Can the hon. Gentleman tell me when this question was first brought under the notice of the Irish Railway Executive Committee?
I cannot say the date off-hand.
Is the hon. Gentleman aware that for months back ports in Ireland have been absolutely choked with stuff because railways are not ready to take it away in wagons, and people in the North of Ireland are suffering from food shortage as a result of the disorganisation and dislocation that has taken place?
I can only assure my hon. Friend that the matter is being considered.
As the matter is of great urgency, could it not be dealt with in a few weeks instead of months?
Licensed Trade Claims
asked the hon. Member for Worcestershire (Bewdley Division) whether as far back as December claims were lodged by licence-holders in the North of Scotland with the Defence of the Realm (Licensed Trade Claims) Royal Commission, in respect of loss sustained by them; whether he is aware that these licence-holders are now in serious financial straits, bordering on bankruptcy, through no award having been issued by the Commissioners; and if he will state the reason of the delay in issuing the Commissioners' awards?
I understand that the Defence of the Realm (Licensed Trade) Losses Commission, Northern Division, will shortly deliver their decision on the applications referred to in the question. In the consideration of these applications, various questions of much complexity were involved, and it was necessary for the Northern Division of the Commission to consult with their colleagues of the Southern Division. Hence there has been unavoidable delay.
May we take it, then, that it takes six months between the initiation of a case and the award in this particular Division?
Military Service
Income Tax Assessors and Collectors (Civil Pay)
asked the hon. Member for Worcestershire (Bewdley Division) whether his attention has been drawn to the fact that Income Tax assessors and collectors when released to join His Majesty's Forces, contrary to the practice followed in the case of all Civil servants, are not allowed the difference between the amount of their Army pay and that of their civil remuneration; whether he is aware that, in the case of men similarly employed by local authorities, rate collectors, the difference between the military and civil pay is made by the local authorities; and whether he will consider the case of the tax collectors and assessors with a view of treating those who are serving in the Army on the same footing as all other Inland Revenue officers?
As I have already informed the hon. Member this matter is under inquiry. A decision will be reached as soon as practicable.
Can the hon. Gentleman say when a decision will be reached?
I am afraid I cannot say that.
Exemptions
asked the Minister of Munitions whether he will ascertain why E. J. Lacey, who served in South Africa and is now unfit for military service, and J. B. Birch, who served in South Africa and for two years in France, and is now unfit for military service, and who until recently were employed by Messrs. Alban Richards, Government contractors, of 16, Albemarle Street, W., the former as traffic manager and the latter as accountant, have been dismissed; why has exemption been claimed by the firm and granted in the case of Stone, aged twenty-eight, by trade a ladies' tailor, and now employed as organiser, and Blaiberg, aged twenty-seven, employed as secretary at the firm's works at Swindon; and will he ascertain the nationality of the latter gentleman?
I am informed by the firm that the two men referred to in the first part of the question were recently discharged in the course of a reduction of the firm's staff. I am asking the Employment Exchanges to make a special effort to find other work for these two men if they are now unemployed. Stone was given exemption for three months from 21st March, 1917, in the capacity of clerk at the firm's head office; his medical category is C 1. The firm state that a man of the name of Blaiberg is employed by them as a cashier; they state that his age is thirty-six, his medical category B 3, and that he is of British origin; he is not protected by any exemption granted by the Ministry of Munitions.
Conscientious Objectors
asked whether, under the provisions of the Billeting of Civilians Bill, it will be possible to compel persons without their consent to have billeted on them conscientious objectors; and, if so, will he take the necessary steps to amend the Bill, so that patriotic persons may not suffer the degradation which such legislation must necessarily involve?
The Billeting of Civilians Bill expressly provides that the local committee shall, in the first instance, allocate billets only to such persons as are willing to provide them, and the compulsory powers would only be used where voluntary effort had failed. It is also provided that any occupier of premises who feels aggrieved by a proposal to billet persons on him may complain to the local committee. A further appeal may also be made to the Central Billeting Board. There would, therefore, appear to be no necessity for the Amendment suggested by the hon. Member.
Does the hon. Member's answer imply that compulsory efforts will be made if necessary?
If any question of dispute arises there is an appeal to more than one tribunal.
asked the Home Secretary (1) whether he will so amend the rules governing the conduct of the conscientious objectors at Princetown as to make it an offence to collect together and hold meetings in rooms or in chapels in and about the town and neighbourhood; (2) whether he will consider the possibility of requiring the conscientious objectors at Princetown and elsewhere to wear a distinguishing badge, as is done in the case of munition workers and for men of military age who are exempted, either temporarily or wholly, from military service; (3) whether the conscientious objectors at Princetown are allowed to purchase provisions in the town, and that in some cases their relatives lodge in the town and here the men spend their evenings, obtaining extra food; and will he take such steps as will put an end to a condition of affairs which is entirely opposed to the wishes of the nation?
I am now considering an amendment of these rules, and will bear my hon. Friend's suggestions in mind.
asked the Home Secretary whether his attention has been called to the full note of Norman's speech in which he represented himself as the most remarkable branch of the Independent Labour Party, namely, the Dartmoor Branch. sent from Leeds on the day the speech was delivered to the "Western Evening Herald" and appearing in that paper on the following day; whether he has seen the official report of the conference stating that Norman said he represented not only the City of London Branch but that he was also connected with perhaps the most remarkable branch of the Independent Labour Party, namely, the Dartmoor Prison Branch, and that that branch had requested him, etc.; whether, in view of the similarity between the note taken by the "Western Evening Herald" reporter and the official report of Norman's speech, he has sufficient evidence to show that Norman has committed an offence under Section 16 of the rules drawn up by the Committee of Employment for Conscientious Objectors, which states that public propaganda or otherwise is forbidden; and will he say what steps, if any, he proposes to take in the matter?
The report published in the "Western Morning News" of 10th April, which I have seen, does not add anything to the information already before the Committee on this subject. My attention has, however, been called to the report of the conference published by the Independent Labour Party, which I understand was only issued two or three days ago. This contains a report of a speech by Norman which has not hitherto been referred to in the Press or elsewhere. I will consider the matter further.
Is the right hon. Gentleman aware that he is entirely misinformed on this subject, and that I did not mention the "Western Morning News," but that my question was with regard to the "Western Evening Herald"? I have a copy of that containing the report of Norman's speech.
I am sorry. My answer referred to the "Western Evening Herald." By mistake I mentioned the "Western Morning News," a name with which I am familiar.
May I give the right hon. Gentleman the report in that paper?
Is the right hon. Gentleman aware that there is a crowd of these people in South Wales, at Penderyn, and that they hold meetings at Hirwaun, in Aberdare, and help to poison the minds of the young people working on munitions there?
I have already said that I am aware that the whole matter wants consideration.
Yes, thank God!
I am engaged in revising the rules which apply to such persons.
Will the House have an opportunity of considering the revised rules before they are published?
No, Sir! They will be made on my responsibility.
asked the Home Secretary whether the conscientious objectors resident at Princetown Prison are given greater postal facilities than are given in many villages in various parts of the country, and that two collections a day are made in the prison on weekdays and one on Sundays; and will he take the necessary steps to prevent this priority of treatment being meted out to men who have failed in their duty both as soldiers and citizens.
My right hon. Friend has asked me to answer this question. I am having inquiry made and will write to the hon. Member.
asked the Home Secretary (1) whether, in view of the fact that persons suspected of disloyalty and of giving information to the enemy are not allowed to reside in and about seaside towns and villages, he will reconsider the advisability of allowing men who have been released from prison after being condemned to long sentences of imprisonment for disloyal conduct and offences against military law to have free access to the coast-line of the British Channel and to roam at will during certain specific hours of work about the neighbourhood of Minehead; (2) whether a number of conscientious objectors travelled to Minehead from Princetown on Monday by the 12.30 train from Plymouth; whether these men were allowed to travel with ordinary passengers; whether they took with them bicycles; whether free tickets were given for the bicycles; whether the porters on the railway stations were required to wheel the bicycles; what work these persons are going to do at Minehead; where they are to be billeted; and what discipline will they be under during their stay at Minehead?
Ten of the men detained as conscientious objectors are employed on an estate near Minehead in cutting and preparing timber for pit-props. I do not think there is any reason for anticipating any danger to the realm from their employment in this locality. Eight of the ten men in question travelled from Princetown to Minehead on Monday. They travelled by the ordinary train. I understand that four of them took their own bicycles with them and paid for the carriage of the bicycles. The men are lodged in a wooden hut on the estate on which they are employed. They are subject to the rules applicable to all conscientious objectors working under the Committee on Employment of Conscientious Objectors.
Will the right hon. Gentleman say what the bicycles are for?
For the purpose of conveying the men from the station to their work and back again.
I understood the right hon. Gentleman to say they were located in a hut. Does he mean that it is necessary for them to have four bicycles to go from the hut to their work?
They use bicycles at their own expense.
Why should they have bicycles at all?
Private Soldier's Pay
asked the Prime Minister whether, in view of the war bonuses which are being sought and obtained by so many different classes of workpeople at home, it is proposed to increase the pay of the private soldier; and, if so, by how much?
The war bonuses referred to are designed to meet the increased cost of living due to the War. The soldier, being fed, clothed, and housed free of cost to himself, stands in a different category, and I am afraid I can add nothing to the negative answers I have given to previous questions. Of course, the soldiers' family is subject to the increased cost of living, but this has been met by a substantial increase in the separation allowances for children.
Seeing that the substantial increase in the separation allowance does not raise the soldier's wife and family above the poverty line, cannot the soldiers have some share of the money which is being divided among people here at home in war bonuses?
I have already pointed out that the case of the soldier is different from that of the civilian.
Will the hon. Gentleman see that it is the Infantry soldier who gets the increase of pay?
That would be a subject to be very carefully considered if the general questions were brought up for consideration.
Farm Workers
asked the Secretary for Scotland whether the War Office had the full concurrence of his Department in calling up for the 1st June next David Sands, of Middle Rottearns, Braco, Perthshire, in view of the fact that he is the only man on that farm able to do any farm work; and will he say how the food of the people is to be grown in this country if the men on the land are thus taken to the Colours with the consent of the Board of Agriculture of Scotland?
I am making inquiry regarding this case of which I have not at present got full particulars, and I will inform my hon. and learned Friend of the result as soon as I am in a position to do so.
Volunteer Force (New Military Age Limit)
(by Private Notice) asked the Under-Secretary of War what will be the position of men in the Volunteer Force between forty-one and fifty; whether they are expected to offer themselves for enlistment in the Regular Army, and, if so, whether such enlistment will not dislocate the establishment of the force and deplete its ranks?
I hope to make a statement on Monday.
National Service
Substitution Officers
asked the Parliamentary Secretary to the Ministry of National Service whether he is aware of the dissatisfaction in Wales arising from the appointment of substitution officers by the War Office; and whether, in view of the advantage of making full use of civilian experience and knowledge of the existing conditions, he can give any assurance as to a modification of the present arrangement?
The appointments of area substitution officers in Wales, as well as in England and Scotland, have been made by the National Service Department, on the recommendation of the War Office. The selection of these officers has been made with a view to enabling the National Service Department to avail itself of the knowledge possessed by men who have already served as substitution officers under War Office control, and who are familiar with the working of the Military Service Acts. Several of these officers (who are at present loaned by the War Office to the National Service Department) were civilians experienced in trade who have received commissions to comply with War Office Regulations. The assistant and sub-area substitution officers are now being appointed, and they will be civilians selected from the best men available with suitable qualifications for their duties.
Munitions
Strikers (Military Age)
asked the President of the Board of Trade whether he will consider the advisability of deciding and letting it be widely known that any man of military age who strikes work before the cause of the strike has been adjudicated on by the Board of Trade will be liable to be taken at once for the Army?
I have been asked to answer this question. My right hon. Friend the Minister of Munitions is not prepared to take the course suggested by the hon. and gallant Member.
Workers' Badges
asked the Minister of Munitions if he will consider the advisability of granting badges for efficient service and good workmanship to all grades of munition workers who deserve them, in view of the incentive of such a badge to such workers and the promotion of better results to the nation in all departments of War work.
The question of the issue of medals to munition workers as a mark of recognition of their services to the country is under consideration.
Electrically-Propelled Vehicles
asked the Minister of Munitions whether he is aware that an active demand exists for electrically-propelled industrial vehicles deriving motor force from existing power stations using Home-produced fuel, whereby the need for the import of fuel and fodder is diminished; whether the Edison Accumulators Company, having taken works for the manufacture of such vehicles in this country, was licensed to produce only a very small number; whether it has been refused certificates to obtain the material necessary to complete even the licensed number; and whether he will now grant priority certificates for such material?
I am aware of the demand for vehicles of this character, and it was in view of that demand that the Edison Accumulators Company were given a licence to manufacture a limited number of chassis in this country. No promise was, or could be, given that all materials required for such manufacture would be forthcoming; but the necessary priority certificates will be issued in respect of any vehicles ordered from the company in connection with work of national importance.
Prosecution (Rochdale)
asked the Minister of Munitions whether any steps have been taken to ascertain approximately what extra profits were made by the Rochdale firm who were prosecuted, found guilty, and fined £50 under the Munitions Act; whether this firm have been requested to reimburse such gains either to the work-people or to the Government; and whether the Government will rest content with 80 per cent. of them in the name of tax?
I have no reason to suppose that any extra profits were earned by the firm in consequence of their irregular action.
Iron and Steel Production
asked whether, in view of the urgent necessity of increased production of iron and steel in this country, he is aware that the developments and working of ironstone is unduly hampered by the price charged for wayleaves; and whether he will forthwith promote legislation providing that only fair and just compensation shall be paid, the amount in each case in default of agreement to be determined by arbitration under the Lands Clauses Acts?
I am not aware that the development and working of ironstone has been unduly hampered by the price charged for wayleaves. Speaking generally, the request for wayleaves has been met in a generous spirit, and no required large field of ironstone has been held up for this cause. If my hon. Friend will give me particulars of any case he has in mind I will have investigation made.
Are there any powers to restrict blackmailing in these cases?
Engineers' Strike
(by Private Notice) asked the Minister of Munitions whether he has refused to meet a deputation of the workpeople now on strike, who proposed to lay their grievances before him, with a view to possible settlement; and whether he will state to the House the grounds upon which such refusal was made?
In reply to the hon. Member's question, I received yesterday a letter directed from the Fellowship Hall, York Street, Walworth, S.E., the signatories to which stated that they were "appointed by a national conference representing the districts where there is a cessation of work in the engineering industry," and saying that they were the "duly accredited representatives of the men directly affected" and "the most competent body to deal with the matters in dispute." To this letter I sent the following reply:
"I am in receipt of your letter which has been sent to me this morning, and, in reply, I have to say that the Ministry of Munitions has always welcomed opportunities of meeting the authorised representatives of Trades Union organisations. It is our duty, having regard both to the comprehensive and effective consideration of questions involved and to our repeated undertakings to the great Trade Unions that we should consistently maintain this policy.
We shall be glad, if asked to do so by your Executives, to meet them accompanied by yourselves or by any other body your Executives may desire to bring with them, but we cannot receive you under other circumstances.—Yours faithfully, (Sgd.) C. ADDISON."
The following telegram has been received by the Government from one of the signatories to the letter in question, and it sufficiently illustrates the ground for my refusal:
"Joint Engineering Shop Stewards Committee repudiates any interference by the official executives of the workers in the present dispute."
The House will be aware that the men who are on strike are, in the main, trade unionists who, in a constitutional manner, have appointed executive councils and delegates to represent their interests, and it would be nothing short of a betrayal of the trades union movement to extend recognition to a group of men who are actuated by such motives as are indicated in the telegram which I have just read to the House. The Government is determined to adhere to its policy of negotiating on labour matters only with and through the duly accredited representatives of labour. The Government has been supported throughout in pursuit of this policy by the trades unions and to depart from it would, we are convinced, be contrary to the best interests of labour and of the State.
Has the Minister of Munitions ascertained whether the executive of the Engineers would be willing to accompany this proposed deputation, or, alternatively, has he laid proposals before the executive of the Engineers' Society for the settlement of this most important dispute?
I sent a copy of my letter in reply to these gentlemen to the executive of the Amalgamated Society of Engineers last night, and they are fully acquainted with what I did.
Is the right hon. Gentleman aware that legislation passed, during the War—the Munitions Act—has seriously weakened the power and pres- tige of the executives of trade unions and has created a situation in which, in view of the stoppage of work, the executive cannot even exercise a moderating influence, and settlement becomes increasingly difficult because of that fact?
I am not aware that the Munitions Act has in any way diminished the authority of the executives of the trade unions. The Ministry of Munitions has conspicuously given attention to and consulted freely with the executive of all the principal unions throughout.
I ask leave to move the Adjournment of the House on a definite matter of urgent public importance, namely, "the failure of the Ministry of Munitions to negotiate in the present dispute in the engineering trades, and the consequence of such failure on the prolongation of the strike."
The pleasure of the House having been signified the Motion stood over, under Standing Order No. 10, until a Quarter past Eight this evening.
Questions
Trading With the Enemy
asked the Prime Minister whether he is aware that the Court of Appeal has just held that the attorney of a German who was allowed to leave England for Germany on the outbreak of war can give a good title to the purchaser of property left by such German in his (the attorney's) hands, and that such a transaction is not trading with the enemy; and whether the Government intends to propose such amendments to our war legislation as will bring the Law into accord with the requirements of the situation?
My attention has been directed to the decision in question. I am ascertaining whether an appeal is contemplated. The matter is under observation.
In view of the great importance of this subject, may I ask the right hon. Gentleman if there is no appeal will he consider the propriety of introducing legislation?
Certainly I will consider it.
How long would an appeal in such a case take? Might it not take six months?
It is an important matter, and there are means of obtaining acceleration of appeals, as was done in the case of the Continental Tyres Company.
Prisoners of War
asked the Prime Minister whether he is aware that a hundred members of the Royal Naval Division, prisoners of war in Germany, are now in a reprisals laager near Ekav, some twenty-six kilometres south of Riga; whether all of them are compelled to work in the German trenches, either day or night shifts lasting twelve hours; whether they are allowed to receive any letters or parcels; whether 450 soldiers and fifty sailors are in a similar predicament near Mitau; and whether he will consider the possibility of transferring 100 German officers from Donington Hall to the front trenches in France until these Englishmen are brought back?
It is a fact that British prisoners of war have been employed in close proximity to the firing line in Russian occupied territory, but no official information has been received respecting the nature or place of their employment. It is feared that neither letters nor parcels were delivered whilst they were so employed. Orders were given on 28th April that no German prisoners of war in France should be employed within 30 kilometres of the firing line, and on 11th May the Government demanded an early assurance that all British prisoners of war in German hands would at once be withdrawn on all fronts. A note verbale has been received from the German Government, from which it would appear that an agreement has been reached for the withdrawal from the firing line in occupied Russian territory of British prisoners of war. The matter is being closely watched.
Is he aware that within the last few days numerous letters have come to this country proving that these men are now being worked 13½ hours per day in, or close behind, the trenches, and that they have only two meals a day in 24 hours?
I know there have been letters received to that effect, but we have good reason to believe that probably by now they have been withdrawn. If not, further steps will be taken.
If I repeat this question about the middle of next week, will he endeavour to have a definite answer?
Will the hon. Member inform the House whether the German officer prisoners at Donington Hall are worked any hours, and, if so, how many?
I do not think it is suggested that any British officers are in those camps.
Consular Service (Committee's Report)
asked the Prime Minister whether the Report of Lord Faringdon's Committee on the Consular Service has been presented, and when it will be laid before Parliament?
The answer to the first part of the question is in the affirmative. With regard to the second part, the Committee were unable to come to a unanimous decision on the questions submitted to them, and they have, therefore, presented a Majority and a Minority Report. These Reports are under consideration, and when a decision has been arrived at with regard to them they will be laid before Parliament.
Representation of the People Bill (Boundary Commissioners)
asked the Prime Minister whether, in view of the appointment of two Commissioners to represent Scotland on the Boundary Commission set up in connection with the redistribution provisions of the Representation of the People Bill, a representative for Wales will be added to the Commission?
My right hon. Friend has asked me to reply to this question. A separate Boundary Commission has been set up for Scotland, but it does not appear to be necessary to follow the same course as regards Wales.
Is the right hon. Gentleman aware that the two Commissioners said to represent Scotland do not, and will he appoint two who do?
The Boundary Commissioners for Scotland are appointed by the Secretary for Scotland and not by myself.
Naval and Military Pensions and Grants
asked the Prime Minister if the Government proposes to consider whether the families of dependants of men of the Mercantile Marine who have lost their lives at sea owing to the action of the enemy should be eligible for pensions; and to what Department inquiries on the subject should be addressed?
The Prime Minister has asked me to answer this question. Arrangements were made early in 1915 for placing officers and men of the Mercantile Marine in the same position, as regards pensions and compensation for injury, as officers and men of Fleet Auxiliaries. The scheme is administered by the Board of Trade.
asked the Pensions Minister whether he has yet decided upon the composition of the tribunal to hear appeals from decisions awarding gratuities to soldiers and sailors discharged as medically unfit; whether the personnel will include a representative of labour; and whether he can inform the House of the names of those selected to constitute the tribunal?
As I stated yesterday in reply to the hon. Member for Kirkdale, I am hoping to obtain the services of a distinguished retired Lord Justice to preside over the tribunal. The other members whose names I am submitting to my colleagues are: Lieutenant-General Sir A. E. Codrington.
Admiral Sir Wilmot Fawkes.
Mr. Bilton Pollard, of the Royal College of Surgeons.
Dr. Norman Moore, of the Royal College of Physicians.
Mr. A. Bellamy, National Union of Railwaymen.
Why cannot my hon. Friend put on the tribunal representatives of the Army and Navy, some men who have been through the Service, and not some distinguished ex-general or adjutant who knows nothing at all about the men.
The whole matter has been considered, and we think these names are quite suitable.
Foreign Relations
asked whether the example of the members of the new Russian Government, who have promised to let the public henceforward know the truth with reference to the War and foreign relations, will now be followed in this country; and, if not, whether so much of the truth as may be revealed to the Russian people will be allowed free publication in this country?
I cannot accept as accurate the implication in the hon. Member's question.
Racing (Prohibition)
asked the Prime Minister whether His Majesty's Government has arrived at a deliberate decision to stop all racing during the War; and whether such decision, if arrived at, will be reconsidered, in view of the small quantity of food fit for human consumption which is at stake and the loss involved in the ruin of an industry of profit to this country?
I cannot add anything to the reply which I gave to my hon. and gallant Friend the hon. Member for Portsmouth to a question on this subject on Friday last.
May I ask, as I put the question down—"An industry a source of profit and pride to this country"—whether "pride" is out of order on the Order Paper?
Shipping Industry (Profits)
asked the Chancellor of the Exchequer whether recent returns indicate that the shipping industry has been earning very largely increased profits; and what they amount to approximately for each of the last two years as set forth in Income Tax returns?
As regards the first part of the question, I can add nothing to what I said on this subject in my Budget statement. As regards the second part, I would refer my hon. Friend to my replies to him in answer to similar questions.
Entertainments Duty (Journalists)
asked the Chancellor of the Exchequer whether bona fide journalists will be exempt from the tax to be levied upon complimentary tickets of admission to entertainments?
I am not as at present advised prepared to make this concession. It would be very difficult to distinguish between journalists and others who are admitted with complimentary tickets.
Income Tax (Excess Profits)
asked the Chancellor of the Exchequer what are the amounts of claims made under Section 43 of the Finance Act, 1916, for return of Income Tax in the cases of Australia, New Zealand, and South Africa, respectively?
No information on this subject is yet available.
asked the Chancellor of the Exchequer whether he is aware that the action of his Department when a rebate of Income Tax is claimed under Section 43 of the-Finance Act, 1916, which permits a return of a portion of Income Tax, where such has already been paid in the Dominions or in India, is that on account of the fact that no action has been taken by the company to have such rebate granted nothing can be done by his Department; and, if so, will he see that the rights of individual shareholders shall not in future be subject to the action or inaction of the various companies?
Where a company pays United Kingdom Income Tax on its profits, the company itself is the person entitled to the relief afforded by Section 43 of the Finance Act, 1916, and I find it difficult to imagine any circumstances under which a company would fail to claim the relief to which it is entitled.
asked the Chancellor of the Exchequer whether Income Tax and Excess Profits Duty can be paid in 5 per Cent. War Loan; and, if so, at what price or value per £100?
This proposal was considered at the time of issue of the War Loan, but I was unable to adopt it.
Is my right hon. Friend not aware that many of those who subscribed to the Loan did so on borrowed money, and that they will be unable to Meet the demands of the Treasury and pay the calls of the Loan unless they sell their War Loan?
No; I hope not. At all events, these considerations were taken into account when I decided the question.
asked the Chancellor of the Exchequer whether masters, officers, and engineers of requisitioned merchant vessels engaged in transport service are allowed an abatement on Income Tax?
Persons employed in requisitioned merchant vessels engaged in transport service are entitled to the same abatements and allowances of Income Tax as the general body of taxpayers.
Tobacco and Matches (Retail Prices)
asked the Chancellor of the Exchequer if he will make an investigation into the prices charged for tobacco over and above the tax; is he aware that the price of common black shag tobacco was increased by 2½d. per ounce to our soldiers immediately after his Budget speech, and that the increased profits per ounce made by the tobacco firms is more than the tax; will he take steps to protect the public from this exploitation; and will he make the same investigation in regard to matches?
Cases no doubt occur, especially after a change in the rate of duty, where individual traders charge prices in excess of those which are generally charged or can be justified, but the situation is being watched from the point of view of my hon. Friend's question.
Furnaces (Use of Pitch)
asked the Minister of Munitions whether, in view of his appeal to steam users to exercise every economy in the use of coal, he is aware that there is a very large accumulation of pitch in this country, and that the quantity is rapidly increasing; whether he is aware that this. pitch can be used, either mixed with coal or coke, or without admixture, as a fuel in furnaces which are adapted to it; and, if so, whether he proposes to take any action in the matter?
I am making inquiries into this matter and will communicate with my hon. Friend.
Poison Conspiracy Case
asked the President of the Board of Education whether his attention has been called to the case of Winnie Mason, a school teacher, who was one of the prisoners tried in the recent poison plot trial and was found guilty of conspiracy and sentenced to five years' penal servitude; whether the Board of Education has any power of refusing or revoking the certificate of a teacher or otherwise controlling the appointment or employment of a teacher on the ground of moral deficiencies or immoral tendencies; and, if not, whether the Board will consider the advisability of acquiring such power?
Mrs. Mason's certificate as a teacher has been cancelled.
Coursing Meetings
asked the Home Secretary if he will take steps to stop the coursing of rabbits in this country at so-called coursing meetings, seeing that the Protection of Animals Act, 1911, affords no real protection to these creatures; is he aware that the rabbits are cramped by travelling and terror-stricken by the barking of the dogs before they are set free; and if he will direct the police to report such meetings?
I am afraid I can add nothing to the reply which was given to the hon. Member last week.
Countess Marckiewicz
asked the Home Secretary whether, in view of the fact that prison conditions press more heavily on the Countess Marckiewicz than on most prisoners on account of the deprivation of all companionship, he will now advise her release?
I cannot add anything to the replies previously given to this question.
Is the right hon. Gentle-man satisfied with the result of the treatment of this lady?
Yes; I am informed that she is in good health.
Female Prisoners (Medical Examination)
asked the Home Secretary what further steps have been taken in investigation of the Brentford case; whether the magistrate who illegally ordered the medical examination of two innocent women is still administering justice in the Brentford district; and whether the doctor who conducted this illegal examination is continuing to examine women in Holloway Prison without obtaining their consent?
asked the Home Secretary whether he has yet received from the Brentford magistrates any reply to his communications concerning the arrest and illegal medical examination of two women, one the wife of a soldier with a two-months-old baby and her girl companion; why these women were arrested without evidence, sent to Holloway Prison, bail being refused, ordered by the chair-man to be medically examined, and dismissed not only without apology but with a caution as to their future conduct; and whether any steps have been taken to make such reparation and apology as may be possible to these women for the wrong done to them?
I have made inquiries into this case and am informed that the magistrates did not order an examination of the two women referred to in the questions. The women were charged with disorderly behaviour, and the magistrates after hearing part of the evidence remanded them for inquiries and endorsed upon the Committal Order a statement that the justices would be obliged by the opinion of the medical officer as to whether the women were suffering from disease. I have informed the magistrates that in my opinion this request should not have been made. In consequence of the magistrates request the two women were medically examined at Holloway Prison with the result that they were reported by the deputy medical officer to be free from disease. The prison medical officers have definite instructions that no woman is to be examined without her consent, and I am assured that in this case the necessary consents were obtained. On the hearing of the case being resumed the magistrates dismissed the charge. It appears from the information given to me that no illegality was committed; but I desire to repeat that in my opinion there was no reason whatever why the magistrates should have asked for any opinion from the medical officer, and I regret that the request was made.
Will my right hon. Friend see that all benches of magistrates are circulated with that information?
I think it is quite unnecessary in view of the statement I have made.
Are prisoners made aware that they may refuse their consent to such examination?
I understand that they are always told that they may refuse.
Have the magistrates been removed from the bench in consequence of this?
asked the Home Secretary whether girls due for discharge from Aylesbury Gaol are obliged to submit to a medical examination, and, if found suffering from venereal disease, are detained beyond their sentence; whether any girls are, in fact, being detained at Aylesbury who are due for release; and, if so, on what authority?
Under Statutory Rule 11 all prisoners must be examined before discharge. No prisoner is locally examined for venereal disease without consent. No prisoner can legally be detained beyond the expiration of sentence, and no, prisoners are, or have been, so detained.
Can the right hon. Gentleman tell me whether prisoners who refuse their consent are not kept in up to the legal end of their sentence, and are not allowed the opportunities other prisoners have of getting their sentences curtailed?
I do not believe that any such distinction is made.
Will the right hon. Gentleman inquire upon that point in this particular case?
Yes, Sir!
Hon. Member for South Longford
Question of Privilege
asked the Home Secretary when it is proposed to release Mr. Joseph MacGuinness, an Irish political prisoner in Lewes gaol under sentence of a secret court-martial, who has since been duly elected a Member of this House?
It is not proposed to release these prisoners at present, and no exception can be made in the case of Mr. Joseph MacGuinness.
I desire, Mr. Speaker, to raise a question of privilege on this question, and, according to May's "Parliamentary Practice," I should do it at once.
Will the hon. Gentleman state his point?
I desire to raise as briefly as possible a question of privilege on this question. In May's "Parliamentary Practice," pages 241-2, it is laid down that such a matter may be brought forward at any time without notice and is to be dealt with forthwith, and that the right of complaint is not restricted to the Member affected by the breach of privilege. In the same work, page 113, it is laid down that in all cases in which Members of Parliament are arrested on criminal charges, the House must be informed of the cause of their detention from their service in the House. The word "detained" makes the sentence comprise the case of a Member in prison when elected and then detained from serving in Parliament. It is common knowledge that the hon. Member for South Longford is now detained as a convict in Lewes Gaol, but for what offence convicted the House has no knowledge. This House, being a House of record and of some dignity, is entitled, for the maintenance of that dignity, as well as for the maintenance of the right of a Member of it, to be informed by official record of why that Member is detained and prevented from serving in Parliament.
In a matter affecting its own rights and privileges, and the personal liberty of one of its Members, it cannot accept irresponsible rumour, or gossip, or the unsupported assertion of any person; nor is there any reason why it should. In a case in which the right hon. Gentleman the Member for East Fife (Mr. Asquith), when Prime Minister, admitted that a record existed, he promised to produce that record, but did not keep that promise. The present Prime Minister has definitely refused to produce the record in any of the cases of which this is one. The Leader of the House has, in answer to me, gone so far as to refuse to state of what offence any one of the convicts in these cases had been accused, or of what offence convicted, adding as a reason that the greater refusal comprised the less. It is the invariable practice and, I believe, a rule of this House, that no Minister shall make use of a document in the House unless he makes that document available to other Members of the House. Therefore, no Minister is entitled to say now what the hon. Member for South Longford has been convicted of or is now in prison for without producing here the full report of the Court. Unless the hon. Member for South Longford has been convicted of a felony by a competent Court, he is entitled to be here, and his detention in prison without the report of the Court having been produced here is a gross breach of the privilege of Parliament and of the rights and privileges of the hon. Member.
This will be so even under the ordinary law, and if the conviction and sentence were those of a civil court, notwithstanding that the right to a writ of habeas corpus existed and was still available. It is still more imperatively so now when the right to a writ of habeas corpus has been abrogated, not by Statute but by a regulation under the Defence of the Realm Act. In these exceptional circumstances the unquestionable right of this House is enhanced and rendered obligatory, not only to require the release of its Member or the production of the record, but also to satisfy itself that the court was a competent court. The withholding of the record in itself casts suspicion on the competence and regularity of the court. In addition to that the admissions of Ministers in the cases of which this is one, directly raise the question of the court's competence. It has been admitted here that the court was a martial court, that is, a court not competent under the common law of England to try civilians at all. It has been admitted here that the court was a secret court throughout. The Army Act provides that courts martial shall be open courts unless for some special reason, and that even where such special reason exists the judgment shall be delivered in open court. There is neither Statute nor regulation giving any exemption from this requirement, yet here we have the case of a man not subject to military law, therefore a case with which a court martial was not competent to deal, a case further vitiated by having been tried in secret and the judgment delivered in secret, contrary to the Army Act and to every Act bearing on the subject, a case so secret throughout that the House has not yet been informed what its Member was charged with and convicted of, or what he is now in prison for. All this, admitted and maintained by Ministers, amounts to proof that the court was incompetent.
The question whether this particular Member would or would not serve here does not arise. No one here is entitled to raise it. No one would attempt to raise it except with the political party purpose of confusing the House and prejudicing the case. The case for the House is restricted to the fact that the Gentleman duly elected to represent South Longford in this House is not free to come here, that he is detained by the secret order of an incompetent court and that the House has not been informed why he restrained. As I am precluded from dealing with the case from the broader political point of view and am confining myself strictly to the question of privilege, I claim as simple justice, that no one else shall be allowed to introduce party politics unless I am allowed to reply. I submit that the continued detention of a Member of this House in these extraordinary circumstances, without communication with the House through you, Sir, is a breach of the privilege of this House and of the rights and privileges of that Member. You, as the supreme officer of the House, have a right and a duty in this matter. You have a right to receive authentic official information, which in this case can only be a full report of the trial of the hon. Member for South Longford, including the charges, the constitution and conduct of court and bar, the witnesses, the evidence, the conviction and the sentence. If you, on behalf of the House, have a right to receive such information, you have a correlative duty to require this information when withheld. I therefore beg to move: "That the detention of a Member of this House in prison by the secret order of an illegal court, without cause shown to this House, is illegal and a breach of the privilege of Parliament and of the rights and privileges of the hon. Member, that such breach is aggravated by the abrogation at the present time of the writ of habeas corpus, and that Mr. Speaker do forthwith issue his warrant for the immediate release of the hon. Member for Longford, or in the alternative the production to this House of the full record of the court by whose order the hon. Member was detained in prison."
The hon. Member has, I think, mixed up two matters. It has been laid down, and it is quite clear that if a gentleman who is a Member of this House is convicted and sent to prison, it is the duty of the authorities who so convict him to inform the House. There is no such duty in the case of a man who, not being a Member of this House at the time of his conviction, is subsequently elected a Member of this House and at that moment finds himself in prison. There is no such duty upon any authority. Neither have I any power to require such information. I think the hon. Member is under a misapprehension there. Then what do we find? We find that the gentleman who is under detention has been elected a Member of the House. That does not concern the House. The hon. Member suggests that the gentleman who has been elected and is now under detention is under detention owing to the secret order of an incompetent court. Then the law is open to him. He can take such action as is open to him to show that the court was incompetent and that he ought not to be under detention.
No.
That is so. The law is open to him.
The words of my Motion.
I am afraid I cannot accept the Motion because the hon. Member has not made out a primâ facie case.
In the case of John Mitchell, I speak from recollection but I think Mr Disraeli moved for the record. John Mitchell had been convicted of felony, sent to Australia and escaped to America, where his grandson has just received Mr. Balfour in the most handsome manner. Mitchell was elected under precisely similar circumstances, and I think I am 4.0 P.M. right in saying that Mr. Disraeli immediately moved for the record affecting Mitchell's conviction. I would therefore submit, Mr. Speaker, that it would be in order as a matter of privilege for the record in the case of the hon. Member for South Longford to be moved for if that precedent exists. I would respectfully ask that you should not, by reason of the fact that at the moment some of us were not acquainted with the fact that this was coming on, rule out a Motion on another occasion, and that if we find there is an exact precedent you should not by reason of the fact being mentioned to-day exclude a Motion upon another day. This is a matter affecting the rights and privileges of all Members. It is a matter which we would deal with in the case of an English or a Scottish Member; but it affects us all. Therefore I would respectfully say that the true course would be that we should have a little time to examine the precedents. As the late Government promised to produce the records in the whole of these cases there is now an especial case in regard to the question of this gentleman's status, namely, has he been convicted of felony? Has the technical term "convicted of felony" been used by the court-martial, and if so, what are the records to justify it? I would respectfully ask that you should give us time to look into the precedents and allow the matter to be mentioned upon a future occasion.
Before you give any further ruling, Mr. Speaker, may I say that you appear not to be aware of the notorious fact known to everybody in Ireland that the Writ of Habeas Corpus has been abrogated in Ireland not by statute, but by a rule under the Defence of the Realm Act. [An HON. MEMBER: "In England, too."] That being so, this gentleman has no remedy whatever, and I would ask you if you dispute that statement, to say whether there is any precedent—if there is one, mention it—for refusing to consider a question of privilege in the case of a Member of this House, not a Member when convicted, but elected while in custody.
As I understand the matter, the question is whether the Court which convicted this gentleman was a competent Court or not. If the Court was a competent Court, and this Gentleman is in custody in accordance with the sentence of that Court, he is, as far as I am aware, properly in custody, and a Member who is properly in custody has no primâ facie right to be released to attend this House. The hon. and learned Gentleman the Member for Cork (Mr. Healy) asked that I would take more time to consider the question before deciding as to a Motion made calling for the record of the conviction. I think that that would be a proper course on my part. I would certainly not rule out of order, on the ground of being out of time, any Motion in that respect.
The Motion handed in at your Chair, Mr. Speaker, consists of the precise proposition that you require the record to be produced in this House. May I ask you to cancel the preceding part of it, and accept the latter part as the substantive Motion—that is, to accept the last clause of the Motion, which I have in my hand, and a copy of which I have handed to you?
I think it would be desirable to take a little more time. The hon. Gentleman will be in no worse position. I will not rule that he is out of time, because the Motion is not taken to-day. I will take a little more time for consideration. I shall still have to consider whether there is a primâ facie case made out.
Very well.
Questions
Welsh Church Act
(by Private Notice) asked the Chancellor of the Exchequer whether the acceptance by the Government of the Resolution moved in another place that the operation of the Welsh Church Act, 1914, should be post- poned for twelve months after the conclusion of peace, involves any pledge on the part of the Government to introduce legislation, which would be acutely controversial, for this purpose, and whether, in that event, he will give an early day for the consideration in the House of Commons of the views of the Nonconformists of Wales in relation to the serious situation which has been created?
(by Private Notice) asked whether Lord Crawford was authorised by the Government to say in the House of Lords yesterday that a case had been made out for the suspension of the Welsh Church Act for some period after the termination of the War; whether this implies also a reconsideration of the provisions of the Act; and whether the Government will grant an early date for the discussion of the question in this House, where the preponderating majority of Welsh representatives are opposed to any interference with the Welsh Church Act?
The attitude of the Government on this subject was stated by me in the House of Commons on the 17th April, and that statement represents the policy of the Government.
May I ask whether the House and the country are to understand from the right hon. Gentleman's statement that the expression of opinion which he gave in the Debate on 17th April that "no one will expect the Government at such a time as this to be considering at all a question of that kind," and his statement that he did not intend to give any pledge for the Government on this subject still remain good, and that the policy of the Government has not been materially changed in the meantime; and, if that be so, whether any, and if so, what, disciplinary measures the Government propose to take in regard to a subordinate member of the Ministry who this week in another place stated that he was authorised by the Government to give such a pledge?
I read what was in the "Times" of the speech to which the hon. Gentleman referred, but not being in the habit of looking into this question as minutely as the hon. Member, I did not see much difference between his statement and mine. In any case, the statement made by me that during the War the Government have not and are not considering this subject remains, with the additional statement that we have given no pledge whatever.
The statement in another place was—
We cannot have a Debate on this subject.
Imperial War Cabinet
Statement by Prime Minister
May I ask the Prime Minister whether he has any statement to make in regard to the Imperial War Cabinet?
I think that I ought to report to the House a very important decision that was arrived at as a sequel to the recent meetings of the Imperial War Cabinet. It is desirable that Parliament should be officially and formally acquainted with an event that will constitute a memorable landmark in the Constitutional History of the British Empire. The House will remember that in December last His Majesty's Government invited the Prime Minsters or leading Statesmen of the Overseas Dominions and of India to attend the sittings both of the Cabinet and of an Imperial War Conference to be held in this country. It is to the former body, which assembled in March, and held fourteen sittings before separating, that I desire to refer. The British Cabinet became for the time being an Imperial War Cabinet. While it was in session its Overseas Members had access to all the information which was at the dsposal of His Majesty's Government, and occupied a status of absolute equality with that of the Members of the British War Cabinet. It had prolonged discussions on all the most vital aspects of Imperial Policy, and came to important decisions in regard to them—decisions which will enable us to prosecute the War with increased unity and vigour, and which will be of the greatest value when it comes to the negotiation of peace. I should like to add on behalf of the Government that the fresh minds and new points of view which our colleagues from over the seas have brought to bear upon the problems with which we have been so long engrossed, has been an immense help to us all. So far as we are concerned we can say with confidence that the experiment has been a complete success.
The conclusions of the Imperial War Cabinet are of necessity secret, but there is one aspect of them which we feel ought to be communicated to the House without delay. The Imperial War Cabinet was unanimous that the new procedure had been of such service, not only to all its members, but to the Empire, that it ought not to be allowed to fall into desuetude. Accordingly, at the last Session, I proposed formally on behalf of the British Government that meetings of an Imperial Cabinet should be held annually or at any intermediate time when matters of urgent Imperial concern require to be settled, and that the Imperial Cabinet should consist of the Prime Minister of the United Kingdom and such of his colleagues as deal specially with Imperial affairs, of the Prime Minister of each of the Dominions or some specially accredited alternate possessed of equal authority, and of a representative of the Indian people to be appointed by the Government of India. This proposal met with the cordial approval of the overseas representatives and we hope that the holding of an annual Imperial Cabinet to discuss foreign affairs and other aspects of Imperial Policy, will become an accepted convention of the British Constitution.
I ought to add that the institution in its present form is extremely elastic. It grew not by design, but out of the necessities of the War. The essence of it is that the responsible heads of the governments of the Empire with those Ministers who are specially entrusted with the conduct of Imperial policy should meet together at regular intervals to confer about Foreign Policy and matters connected therewith, and come to decisions in regard to them, which, subject to the control of their own Parliaments, they will then severally execute. By this means they will be able to obtain full information about all aspects of Imperial affairs and to determine by consultation together the policy of the Empire in its most vital aspects, without infringing in any degree the autonomy which its parts at present enjoy. To what constitutional developments this may lead we did not attempt to settle. The whole question of perfecting the mechanism for "continuous consultation" about Imperial and Foreign affairs between the "autonomous nation of an Imperial Commonwealth " will be reserved for the consideration of that special Conference which will be summoned as soon as possible after the War to readjust the constitutional relations of the Empire. We felt, however, that the experiment of constituting an Imperial Cabinet, in which India was represented, had been so fruitful in better understanding and in unity of purpose and action that it ought to be perpetuated and we believe that this proposal will commend itself to the judgment of all the nations of the Empire.
Questions
Evicted Tenants (Ireland)
asked the Chief Secretary for Ireland whether the Estates Commissioners recently gave as an excuse for not reinstating Mrs. Malone, Dingle, that she was ejected on title; and whether, seeing that this case has been under consideration for ten years, they can now give any valid excuse for the fact that she is still an evicted tenant unprovided with land?
I can add nothing to the answers which I gave the hon. Member on the 3rd and 10th May.
Is the right hon. Gentleman aware that this lady has been sanctioned for ten years as one entitled to get land, and how long more is she to wait before something is done?
To say that a person is sanctioned to get land in Ireland is a very misleading expression. This is a tenant evicted on title many years ago and within the classification of evicted tenants, but the land has not been available for the purpose of distribution. I will inquire about the matter, but that is the information I have.
I must press the right hon. Gentleman. Is it not the fact that the Estates Commissioners gave a short time ago as an excuse that really she was not entitled at all as an evicted tenant?
If a tenant ejected on title is not within the statutory category of an evicted tenant, so much the worse for Mrs. Malone; but as I understood, the desire of the Estates Commissioners was to find a holding for her if they could.
When will they carry that desire out?
Would the right hon. Gentleman make representations to the Estates Commissioners that those who are treated as evicted tenants should be reinstated before the settlement of an estate is complete, as the invariable practice of the Estates Commissioners is not to reinstate the evicted tenant until the final settlement on an estate is completed, which means that the evicted tenant is left out in the cold for years?
Board of Public Works (Ireland)
asked the Chief Secretary what steps he proposes to take in view of the Report received from the Board of Public Works' engineer with reference to the causes, other than the weir across the river at Leeche's Mill, Abbeyleix, which are responsible for the flooding of Capnaclough and thirteen other townlands representing an area of 680 acres?
The Board of Works inform me that the prevention of flooding of the lands at Cappanacloughy would require extensive new drainage works and large expenditure. I am not able at present to propose this.
Mining Royalties
asked the Chancellor of the Exchequer what is the practice of the Commissioners of Inland Revenue in ascertaining the assessable value of mining royalties, etc., if and in so far as they are assessable to Mineral Rights Duty, Excess Mineral Rights Duty, Income Tax, and Super-tax, as regards the order in which these duties and taxes are applied; and whether the amount of each tax which stands higher in that order is deducted for the purposes of ascertaining the assessable value in respect of the next or what is the method adopted?
Income Tax is chargeable on the full amount of the mining royalties without deduction on account of Mineral Rights Duty or Excess Mineral Rights Duty, but the latter duties are computed by reference to the net amount of the royalties after deduction of Income Tax. As regards Super-tax, no deduction is made in respect of Mineral Rights Duty, but a deduction on account of Excess Mineral Rights Duty is allowed in computing Super-tax liability for the year following that which includes the end of the accounting year in which the payment is made.
asked the Chancellor of the Exchequer what was the aggregate amount of the mining royalties, etc., assessable to Mineral Rights Duty during the financial year 1915–16; and how much of that amount was also assessable to Excess Mineral Rights Duty during that financial year?
I would refer the hon. Member to the Report of the Commissioners of inland Revenue for the year ended 31st March, 1916, pp. 61, 63, and 67, in which such details of the assessments of Mineral Rights Duty and Excess Mineral Rights Duty as are available for that year are set forth. I regret that, in view of the labour involved, I cannot undertake at the present time to furnish the particular information he desires.
Colliery Accidents
asked the Home Secretary if his attention has been called to the number of fatal accidents to pitmen through falling down the pits; and if he will enforce an Order that all men engaged in working in pit-shafts shall wear proper safety slings or harness to prevent this avoidable waste of human life in mines?
My attention had not been specially drawn to this matter. I am advised that safety appliances of the kind referred to are commonly used when necessary for safety, and that it would not be practicable to make their use compulsory in all cases. I am glad to find that the total number of fatal accidents from falls in shafts has decreased in the last two or three years
asked the Home Secretary if he has had his attention called to the uneasiness caused by the employment of unskilled or unfit men and boys at the lamp-rooms of some of the big collieries in South Wales; and will he see that only fit and skilled men are employed at such duties and make the possibility of an explosion at these collieries less likely and remove the uneasiness at present felt by the miners of South Wales?
I have no information to the effect suggested in the question, and no representations on the subject have been received recently either at the Home Office or by the divisional inspector. If the hon. Member will furnish me with particulars of any cases brought to his notice, they will be investigated.
New Member Sworn
Sir James Edward Parrott, for the Burgh of Edinburgh (South Division).
Message from the Lords
That they have agreed to,
Consolidated Fund (No. 3) Bill, without Amendment.
Bills Presented
CHURCH LANDS (BRISTOL, ST. THOMAS) CHARITY BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management of the Charity known as the Church Lands, in the parish of St. Thomas, in the city of Bristol," presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 54.]
ESSEX AND HERTS CLERGY CHARITY BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management of the Essex and Herts Clergy Charity, in the counties of Essex and Hertford," presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 55.]
BIRMINGHAM CHURCHES FUND CHARITY BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management of the Charity called or known as the Birmingham Churches Fund, in the city of Birmingham," presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 56.]
CONGREGATIONAL CHAPELS CHARITIES BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management of certain charities," presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 57.]
BAPTIST CHAPELS CHARITIES BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management or certain Charities," presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 58.]
PRESBYTERIAN CHURCH (CROOK) CHARITY BILL,—"to confirm a Scheme of the Charity Commissioners for the application or management of the Charity consisting of the Presbyterian Church, in Victoria Street, in the ancient township of Crook," in the ancient parish of Brancepeth, in the county of Durham; presented by Sir JOSEPH COMPTON-RICKETT; to be read a second time upon Monday next, and to be printed. [Bill 59.]
Orders of the Day
Business of the House
Can the right hon. Gentleman say what will be the business for next week?
On Monday there will be a discussion on the Government proposals relating to Ireland and further stages of minor Bills, if there is time.
On Tuesday and Wednesday, the Representation of the People Bill—Second Reading.
On Thursday, the Finance Bill; and on Friday, the Motion for the Adjournment till Tuesday, 5th June.
When is it intended to take the Munitions of War (Amendment) Bill?
I cannot say at present, but according to this programme it was not put down for next week.
Supply.—[9th Allotted Day.]
CIVIL SERVICES AND REVENUE DEPARTMENTS ESTIMATES, 1917–18.—[Progress.]
Considered in Committee.
[Mr. WHITLEY in the Chair.]
BOARD OF TRADE.—Class II.
Motion made, and Question proposed, "That a sum, not exceeding £238,923, be granted to His Majesty, to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1918, for the Salaries and Expenses of the Office of the Committee of Privy Council for Trade and Subordinate Departments."—[NOTE.—£180,000 has been voted on account.]
As this is the first statement which I have made in this House I am sure that the Committee will be as kindly as they possibly can in overlooking any imperfections. I have not been very regular in my attendance since I first became a Member of this House, after I had become President of the Board of Trade, but I wish to assure hon. Members that failure to be very regular in attendance was not due to any desire on my part to be neglectful of any of my duties here, but was due solely to the fact that I found the work connected with the Board of Trade of so urgent a character that I was not able to come to this House as often as I should have desired. I can only hope that, as I become more accustomed to the duties of my present position, I may have the opportunity of being here more frequently.
First of all perhaps I may be permitted to say a word or two about the staff employed by the Board of Trade. At the outbreak of the War the total staff numbered in round figures 2,700. The number at present employed is about 3,500, which shows an increase of some 800 over the normal number. Of the staff normally employed, some 780 have enlisted in His Majesty's Forces. This figure represents 60 per cent. of all the men who were of military age at the outbreak of war. Of these a considerable number have gained distinction. Two have been awarded the Military Cross, two the Military Medal, one the Distinguished Conduct Medal, two the Meritorious Service Medal, and two have been mentioned in dispatches, while, unfortunately, forty have been killed or have died of wounds received in action. This is a splendid record, and one of which the Department may well be proud. I might add that roundly 1,000 women are now engaged compared with less than fifty prior to the War, and that they are doing very satisfactory work. Some of the work of the Board of Trade has been transferred to other Departments, particularly the work of the employment section and the shipping section. Nevertheless, the additional burden which has been put on the Board of Trade amounts, I think, to more than has been taken away, and in particular we have been given control of all the coal mines in the United Kingdom, and also of the essential canals that have now been taken over which were not taken over when control of the railways was taken over by the Board of Trade.
I think, perhaps, that it would be better to defer dealing with these and some other matters, and consider first of all the question of the British Trade Corporation, of which I am sure the Committee would desire me to speak as soon as possible. I understand that copies of the petition, the charter and the deed of settlement have been presented to Parliament, so that Members have had the opportunity of familiarising themselves with the powers that have been conferred on this Corporation. I should like first of all to say that to my able predecessor belongs the credit of initiating this important organisation. It was while he was in office that the formation of an institution which will afford financial facilities for trade and industry of a kind that have not always been available was pressed very strongly upon his notice. For instance, the Association of Chambers of Commerce of the United Kingdom passed a resolution urging that it was important that the Government should consider the desirability of facilitating the establishment of a large credit bank or banks for the purpose of the development of British trade abroad. In July, 1916, a Committee was appointed by the Board of Trade to consider the best means of meeting the needs of British firms after the War, as regards financial facilities for trade, particularly with reference to the financing of large overseas contracts, and to prepare a scheme for that purpose. This Committee was presided over by Lord Faringdon, and included representatives of joint stack banks, of great merchant banking houses, of industry, and also of the chambers of commerce. It was a very able and representative Committee, and I am sure hon. Members will agree with me that their conclusions warrant the most careful consideration. I am sure that Members will agree with me that we are deeply indebted to the members for their advice and assistance on these important questions. This Committee reported in favour of the formation of a new institution, which would afford fuller and wider financial assistance for trade, and for the development of our industries, by co-ordinating many of the existing financial facilities. They commend in the very highest terms the work of existing banks, but they felt there was imperative need for an institution which would afford wider financial facilities, and which would be free from the disability which certainly joint stock bank companies are now under, owing to the fact that they require to keep their resources in a more liquid state.
My predecessor, with very great promptitude, invited Lord Faringdon to take steps to see whether it would be possible to set up such an institution as that recommended by this Committee. When I had the honour of being appointed President of the Board of Trade I had presented to me at an early date a draft of the charter and of the deed of settlement. These my predecessor had no knowledge of. It is to him we are indebted for the initiation of the scheme, and on my shoulders must rest the responsibility for all the details—that is, for the form the charter and the deed of settlement have taken. Members know that the capital of this new undertaking is £10,000,000. Of that, it is proposed to issue £2,500,000, and before the prospectus can be issued it is necessary that £1,000,000 of capital should be subscribed. I knew myself that some of the large bankers were in favour of some such form of institution as this. I think I am right in saying there was in the minds of some of them, at least, the thought that they themselves should get together and form some institution connected in some way or other with the joint stock banks, but which would be more free to loan money on longer credits than the present banks felt they were justified in doing. As I say, knowing this, I took upon myself to invite the representative bankers to meet me, so that I might explain this scheme to them, and ask them to give it their support. I met these bankers quite recently, and I am very glad to say that they were practically unanimous in support of this proposal, although I cannot say that they were equally unanimous in agreeing to subscribe the capital. Nevertheless, a number of the larger banks have subscribed to the capital, and the £1,000,000 which is necessary in order that this scheme may be launched is now absolutely assured. It will have been observed by the charter that the Government does not propose to subscribe to the capital of this undertaking, nor does it propose to subsidise the corporation in any way whatever. It will, however, be observed that in clause 4 of the charter it is proposed that this corporation shall act as an agent of the Government, subject always to the Government being entitled to appoint other agents, if such a course appears necessary or expedient. I do not believe it can be suggested that either that clause or any other clause in the charter confers upon this corporation anything in the nature of a monopoly. The Government does believe that this corporation will serve a very useful purpose, and will give it its sympathy and support. It does not propose to exercise any direct control over its operations, but certainly, if the corporation fails to perform the duties the Government have a right to expect from it, then I think the Government will be entitled to step in, and, if necessary, to annul its charter.
The institution is formed for a particular purpose—formed because it is thought that it will afford traders and manufacturers of this country an opportunity of securing credit beyond what they have been accustomed to in the past. I believe that if the corporation is managed on those lines it will be a complete success, and of enormous advantage to the people who require that sort of assistance. It has been suggested that this corporation will secure special information from the Government—that it will have some very special privilege which will secure to it information which will be denied to other and similar undertakings. That is certainly not the case. The Intelligence Department of the Board of Trade will give to the corporation information with respect to trade, just the same as it would give information to other institutions, and, as far as I know, the corporation will not enjoy any special privilege of that kind. I might add that the chairman of the corporation has given an undertaking that he will not take any steps connected with any affairs in any foreign country, which would be contrary to the wishes or to the policy of the Government. You will have observed that it is made perfectly clear that this corporation must be thoroughly British, both in respect to the control of its shareholders and also with respect to its directorate. Perhaps I might refer to one of the clauses of the deed of settlement—clause 135, which deals in particular with the remuneration which may be paid to the managing board of directors. Perhaps I may be allowed to read this clause:
It has been suggested that these terms are too generous, that too much of the profits are allocated to the managers, and too little to the shareholders. Perhaps I am not altogether qualified to pass judgment on such a matter. Perhaps it is that I am too accustomed to higher remunerations to be able justly to determine whether this is a fair and reasonable distribution of the profits or not. Certainly I must confess that to me they do not seem to be excessive. I cannot but think that in a corporation of this kind everything depends upon the men who are to carry it on—men of affairs. Men of knowledge and experience, men who can command big incomes, will be necessary if this corporation is to be carried on successfully. I cannot help thinking, if the shareholders on the one hand put their money into this enterprise, and, on the other hand, the men who are responsible for carrying on the undertaking put their brains and experience into the work, that there should be some fair division of profit between them. Perhaps I might give one or two illustrations as to how the Clause will operate. Let us estimate that the whole of the capital is issued—that is, £10,000,000. If the profits are 10 per cent., that would be £1,000,000. The application of this clause would mean that of that £1,000,000 the shareholders would receive £960,000, and the board of directors and the whole management would receive £40,000. Again, as an illustration, assume an instance of an issued capital of £2,500,000. We will assume a profit of £250,000; that would mean that first of all £150,000 of the £250,000—that is, 6 per cent.—would go to the shareholders. That would leave a balance of £100,000. Twenty per cent. of that £100,000 is £20,000, so that the shareholders would receive out of the £250,000 £230,000 and the management and directors would receive £20,000.
Over and above salaries?
Over and above salaries; yes, that is true.
Will the right hon. Gentleman explain his first figure, because I make it out that if the profit is £1,000,000 the directors will receive £70,000 and not £40,000. [HON MEMBERS: "£75,000!"]
I think I am correct. Let me take the case of the £1,000,000 again. They were to receive 20 per cent. of the first £100,000—that is, £20,000; they receive 10 per cent. of the next £100,000—that is, £10,000; and the two together make £30,000. They receive an additional 5 per cent. on the remaining £200,000—that is, a total—
£800,000!
Five per cent. of £750,000 would be £37,500. If you added the £30,000 to that—
If I may give the figures again, I think hon. Gentlemen will find I am correct. Twenty per cent. of the first £100,000 is £20,000, 10 per cent. of the second £100,000 is £10,000, and 5 per cent. of the remaining £200,000 is £10,000; making a total—
£800,000!
The words are not as quoted by the right hon. Gentleman. It does not say of the £200,000 5 per cent., but beyond £200,000 5 per cent., so that if the profits were £1,000,000, as stated by the right hon. Gentleman, they would get 5 per cent. of the £800,000, which would be £40,000, in addition to the £30,000 they already have.
The right hon. Gentleman has not told us that £600,000 is divided at 6 per cent.
I am sorry if I do not make it clear. I thought it was understood that these percentages did not apply until shareholders had first of all secured 6 per cent. on the whole of the issued capital. I hope that if there is any criticism upon this proposal it will be criticism in the direction of construction, of trying to make the scheme better rather than of trying to destroy it or to prejudice its operations right from its very beginning. I think those who have had an opportunity of studying the methods, and of having some knowledge of what the banks and other financial institutions in other countries are doing to prepare themselves and the trade and industry of other countries after the War, will agree with me that there is an absolutely imperative need for a substantial change in the business methods of this country. I have knowledge myself of where institutions almost identical with this are being set up in other countries, set up on a much more elaborate scale than this, with very much greater resources. They are being established for the sole and only purpose of securing the interests of the country and a share of the foreign trade of the world, the trade of which this country has had such a large share. If these undertakings are going to improve and alter methods, then it seems to me that if we are going successfully to compete, we must be able to put our traders, merchants, and manufacturers in a position in which they can at least meet on equal terms their great competitors in other countries. I should like to say that, in my opinion, this institution will not in any way interfere with existing banks or banking houses. First of all, there is plenty of room for an organisation of this kind, and in my opinion this corporation will be well advised, and I believe it will do so, in beginning its operations, to work through existing banks and banking houses rather than on more independent lines. I may say now that it has been agreed with the joint stock banks that this corporation will not do what is known as an ordinary banking business; that is, it will not open current accounts, such as are ordinarily understood by bankers, and it will not take any money at call or on short notice. I believe this institution is going to work in complete co-operation with and not in competition with existing institutions. As I have said before, the credit for the initiation of this scheme does not lie with me but with my predecessor. All I have had to do has been to approve the charter and the deed of settlement. If, in doing that, I have not succeeded in fulfilling what my predecessor had in his mind, then perhaps I may say it is to be regretted that he did not continue in office long enough to complete the scheme.
I should like to make some reference to the Department of Commercial Intelligence of the Board of Trade. The function of this Department is the collection and dissemination of intelligence on all matters relating to home and foreign trade. This Department is now giving very special attention to those particular trades in which Germany was so largely interested before the War. Opportunities are given to our traders and manufacturers who have a knowledge of these particular trades, exhibitions and fairs are arranged, and I think that as a result of this effort our people will be able to secure to this country a good many of those trades which before have been almost exclusively monopolised by the Germans. Our present Prime Minister (Mr. Lloyd George) was responsible for the appointment of certain Trade Commissioners. One was sent to Canada, another to New Zealand, another to Australia, and another, I think, to South Africa. These Commissioners have done very valuable work, and it is now proposed that the whole of the Empire should be covered by a system of Trade Commissioners. We are now taking steps, with the approval of the Treasury, for the appointment of twelve additional Trade Commissioners at once. Perhaps I may be permitted to say just a word or two about the railways. As hon. Members know well, it has been necessary for us to establish some very severe restrictions not only in respect of the passenger traffic but of the goods traffic as well. I think hon. Members understand why these restrictions have been necessary. First of all, they know that we have had to send a very large amount of rolling stock abroad, and that we are now continuing to send that rolling stock to France, and they will probably quite understand that it is impossible for the railway companies to secure anything like a sufficient amount of material for the construction of new locomotives or the renewals for those in service. I am sure hon. Members would also like to know that of the total employés in the railway service not less than 150,000 have joined the forces There has, of course, been an enormous increase in traffic, in particular traffic for munitions work, and of course there has been a very large increase in connection with military movements. I am sure hon. Members will wish me to take this opportunity on behalf of the Railway Executive Committee, my officers, and myself to express our sincere appreciation of the very excellent work which is being done by the staff at the present time. They are working under exceedingly difficult circumstances, they are working long hours, and I am sure it is to all of us a source of great gratification that the railways are working as freely as they are from any breakdowns or serious trouble. I am sure I can speak with the highest possible praise of those who are responsible for the management and the working of the railways in this country. I need hardly say how sorry we are to find it necessary to place these restrictions both in the way of increased fares and in the limitations on travelling from time to time. I am sure the public will understand why we find it necessary to do this, and I deeply appreciate the way in which the public have accepted these restrictions.
The Board of Trade have recently, in March last, taken over the control of all the essential canals in the whole of the United Kingdom other than those taken over at the time the railways were taken under control by the Board of Trade. We have appointed a Committee, of which Sir Maurice Fitzmaurice is Chairman, to have charge of these canals, and I am very glad to say that there has been an improvement in the working of the canals since they have been brought under the control of this Committee. They have been divided up into three districts, and sub-committees have been appointed in charge of each of those districts. Through the co-ordination of and co-operation between the railways and the canals there has, as I have said, already been an improvement in the carrying of goods both on the canals and upon the railways.
Before the right hon. Gentleman leaves the subject of canals, may I put one point to him? He said that the Canals Control Committee had had handed over to them all the essential canals of the country, and not those purchased previously by the railway companies. Does he not consider that the canals under the control of the railway companies are also in many cases essential canals, and does he not think that it would simplify things if one authority were to manage them all?
I agree that most of the canals, if not all of them, which are under, or are worked by, railways are essential canals, but the 5.0 P.M. railways and the canals are working together; a representative of the Railway Executive has been appointed to the Canal Committee, and I think it would be a mistake, even if it were possible at this time, to make any change in the working of the canals which are now under the control and management of the Railway Executive. The Railway Executive are to that extent under the control of the Board of Trade, and I do not think there is any opportunity for misunderstanding or friction between those two separate authorities. Another important matter in which the Board of Trade are keenly interested is that of coal. You will remember that it was in December last year when the coal mines in South Wales and Monmouthshire were taken over by the Government. Since then all the other coal mines in the United Kingdom, and in Ireland, have been taken over by this Department. It was felt that it would be to the advantage of the State if all these mines were brought under one control, so that they might be under review by central authorities in order that there might be no wasting of transport and so that the consumption of coal itself might, if necessary, be regulated. I think it will be necessary that we should warn the public that in some districts at least, particularly in London, it will be necessary to establish some system of control, some rationing system in respect of the consumption of coal in winter. I think it will be well the public should be warned that it will be desirable they should take advantage of the summer months to store coal for next winter. It is not a question of coal so much as it is a question of transport, and so far as I can see, quite irrespective of whether the War goes on or not, it will not be possible next winter, when the railways are impeded by short days and fogs and so on, to successfully carry all the traffic that they may be called upon to handle during that time. So I say that I think it will be well the public should be warned, and that they should take steps within the limits of their rations to store coal for next winter.
Cannot the transport of coal be transferred from the railways to the canals?
The canals and the railways are working together in this matter. The canals, like the railways, are short of labour, and it is difficult to keep up the repair of boats, but to whatever extent canals can be used for the carriage of coal the hon. Member may be sure that they will be used. A separate Department was established by the Board of Trade for the purpose of dealing with problems arising out of the control of mines. The chairman of this Committee is the Controller, Mr. Guy Calthrop, who has had associated with him as his advisers on the Committee an equal number of men representing the mine owners and the miners, and this arrangement has worked exceedingly well. Mine owners, miners, merchants, and everybody connected with the coal industry are working very loyally and doing all they can to make this scheme a success. I am sorry I am not in a position now to give any information with respect to the financial arrangements which it will probably be necessary to make with the owners arising out of this control. It is, of course, obvious that taking over these properties and vesting them in control as we have done means that this industry must be subject to some very severe limitations. Of course mine owners, like others whose property has been taken over by the State, have the right of appeal to the War Losses Committee, but it seems desirable, if we can make arrangements with the mine owners now, that we should make adequate provision for any disturbance arising out of this control. And it is desirable that it should be done in that way rather than that we should leave it to the owners to make constant appeals to the War Losses Commission, which must necessarily hamper and impede the work of the Controller. I am sorry that negotiations have not yet come to a point when we can give any definite information upon them, but I can assure hon. Members that every arrangement will be made for the welfare of all parties and of the miners themselves.
Will it not be possible to let them have control and draw the profits, making special arrangements with the Controller?
I cannot make any statement on that subject, but I hope to be able to do so very shortly. Now, with regard to petrol. The Board of Trade have taken control of it, and there, again, I am afraid we must make an appeal to the public. The enormous demands, and the rapidly growing demands, of the War Office and the Admiralty make it necessary that there should be a further restriction on the use of petrol for civilian use. I am afraid it will be necessary for us to establish such restrictions that will make it impossible for any petrol to be used for private purposes so long as these demands continue. I am sorry to say that we have recently lost several very big ships, and the loss of those ships has really made it imperative that we should take steps at once to reduce consumption in petrol for civilian use. I am afraid that those restrictions must affect the petrol allowed for what might be ordinarily considered essential purposes, such as taxi-cabs, and a good many people who, up to the present time, have been accustomed to a certain allotment of petrol each month. Unfortunately the Board of Trade have round it necessary to make these restrictions. I am afraid there is no alternative open to them.
I should like to say just one word about the mercantile marine. Hon. Members know that the Board of Trade is not responsible for the construction of ships nor yet for the use to which these ships are put. The Board or Trade is working in complete co-operation and in complete harmony with the other Government Departments in this matter, and giving freely to those Departments the use of its staff, as they may desire. But I cannot refrain from saying a word on an occasion of this kind about the officers and sailors in the mercantile marine. It is perhaps impossible during the War to go into any details publicly of the many deeds or courage and of heroism, and of the terrible privations which these men are constantly suffering, but some day they will all be made public and then we shall know what an immense debt we owe to these gallant men. I wish to touch briefly on some of the more important problems in which the Board of Trade are interested. There are many others, perhaps, of equal importance, but I would specially mention the trading with the enemy legislation. There, so far as the Board of Trade are concerned, they have so far dealt with 750 cases; 443 winding-up orders were made, and 245 orders vesting the shares in the Public Trustee. I may also mention that the Board of Trade are responsible for the purchase of meat for the British, French, and Italian Armies, and also of the cheese used by the British Army. Then there is the question of the restriction of imports, for which the Board of Trade is responsible. These are some of the many problems which engage our attention day by day, all of them problems of great importance. Perhaps there are other problems with which the Board of Trade is engaged which may possibly be of even greater importance than those I have mentioned, and these are problems affecting the trade and industry of this country after the War. My opinion is that these very great problems which we have got to face when the War comes to an end cannot be neglected even in the time when this great War is going on. Steps must be taken in advance and plans made, so that we shall not be found unprepared when peace comes. We may not be able even to venture a prophecy when the War will end, but it is quite certain that peace is going to come again, and it is absolutely imperative that we should take steps when that happy time does come that we shall be ready to go forward with our peace plans. This War has opened our eyes to many things and not the least is the dangerous position into which our trade and industries were drifting. It has given us an opportunity of reviewing our position and of finding out where we are weak and where we are strong. It has shown us very clearly the folly of allowing potential enemies to secure a complete control of special industries and of materials which in time of war are essential to our success. It has also opened our eyes to the danger of allowing the pernicious influence of what is known as "peaceful penetration" to stifle and stunt the growth of many enterprises in this country. I am quite certain that the people of this country hereafter will take a much greater interest in these problems and to see that trade and industry in this country are not placed under unfair disadvantage, and that they will give those engaged in those trades and industries the right sort of encouragement and support. We have at the Board of Trade many committees engaged in considering many of these problems, and many of the committees attached to other Government Departments are similarly engaged. Distinguished and very able men are unstintingly and without reward giving their time to these problems. Other Government Departments are devoting a great deal of time and thought to these problems, and a Reconstruction Committee under the very able guidance of the right hon. Gentleman the Member for the Chesterton Division (Mr. Montagu) is also dealing with these post-war problems. The Board of Trade is, I hope, working in complete harmony with all, and I hope and believe that out of all this great effort the trade and industry of this country will be revitalised and command the admiration and envy of the whole world.
I trust the right hon. Gentleman will allow me to congratulate him on his first speech in this House and to express the hope that he will in future honour us by a more frequent attendance, if he can possibly do so, and by more frequent speeches. I should like to say a few words upon the question of the British Trade Corporation to which the right hon. Gentleman has alluded. He has made some observations about the attitude of the banks. Speaking for myself alone, and only for myself, I should like to say that it does not seem to me that this is a question which in any way concerns bankers, always provided that no facilities or guarantees are given by the Government. As long as this is a company going in the ordinary way to transact business for the advantage of the shareholders and the public, it does not seem to me to be any concern of the banks what happens to this company. Though, as I say, I am speaking only for myself, I believe that that is the general attitude of the bankers on this question. I understand that the prospectus of this company has either been issued or will shortly be issued, and as the public will be appealed to for subscriptions, I think it is very important that there should be no misconception on their part as to the attitude of the banks. I do not know that I quite gathered what the right hon. Gentleman said were the subscriptions of the banks, but I believe very few of the banks have subscribed. I do not think any statement of that sort ought to go out to the public, by which they might eventually say, "We subscribed to this undertaking under the impression that the banks as a whole had subscribed to it." There are a few clauses in the charter to which I should like to allude. The right hon. Gentleman said that there was a clause giving a certain proportion of the profits to the directors, because practically it is to the directors because the directors can decide how that can be apportioned. He said that if the amount of profits came to £1,000,000 that the amount which the directors could take over and above their ordinary remuneration would be £40,000. I presume that he based his calculation upon section 135 on page 20, which says:
"After taking into account the balance whether credit or debit brought forward from the previous year shall . . . so far as the same will extend of a dividend for that year of six per cent. on the amount paid or credited as paid on the share capital of the corporation for the time being issued in accordance with the priorities and rights of the different classes of shares."
There comes another sub-section, which I do not understand. I do not know whether there is any legal authority here, but it is certainly not clear. That section says:
"Out of the surplus net profits of each financial year."
I presume what the right hon. Gentleman means is the surplus net profits after paying the dividend of 6 per cent., but that is not stated. The words "surplus net profits," taken by themselves, mean the net profits. To make the matter quite clear the paragraph should read: "Out of the surplus net profits after the dividend of 6 per cent. has been paid to the shareholders in each financial year."
If the right hon. Gentleman will refer to the sixth line of that sub-section (2), he will find the words "and the dividend above mentioned," so that the clause does make provision for the payment of a dividend of 6 per cent.
Yes; but does it? Because the clause goes on to say, "out of such surplus net profits up to one hundred thousand pounds." There is nothing there about the payment of dividend. For the first £100,000 the proportion is to be 20 per cent., and for the second £100,000 10 per cent., and on the remainder 5 per cent. I do not think it is at all clear, and that it must be made clearer. It is really a legal question, and it ought to be decided whether or not a legal interpretation could be put on that clause that the surplus net profits read in connection with the remaining words which come before section 3 do not mean the net profits, and not the net profits after the payment of 6 per cent. upon the shares. Presuming, for the sake of argument, that the right hon. Gentleman is correct, and that £1,000,000 is earned—that is, 10 per cent. on £10,000,000—then £40,000 goes to the directors in addition to the remuneration which they have received. I believe that is a very bad principle and one which tends to speculation on the part of the managing directors if they are going to have a share in order that they may receive a large per cent. of the profits. I have been connected with the City of London for forty years, and I do not know any such undertaking which has had such a provision in its articles. I think it is extremely bad, and that it is not at all likely to encourage good business, and that it is likely to encourage bad business. I hope sincerely that this Clause goes out. What is supposed to be the origin of this corporation? It is not started in order that the managing directors may make large sums. It is started in order to give facilities to the people which it is supposed the present banks do not give them. I will not go into any argument as to whether that is right or wrong, but that is the object for which the original committee was set up. If that is the object, and if it is to be done for that reason why is it necessary to go out of your way to put in an exceptional Clause which will give exceptional profits to the managing directors? The great banks of England have been very successful without any Clause of this sort. I am not aware that anything of this sort has occurred, though I am not quite certain that there may not have been one or two instances of something of the sort or rather of founders' shares, which are very nearly the same sort of thing. Where there have been founders' shares held by the directorate the result has been disastrous. Both companies which I have in mind, the London and Globe, and the Trustees and Executors, failed, and chiefly because the management was tempted to go into large speculations because they knew that they would get a certain large surplus of the profits which might result from rash speculation.
There is another Clause to which I desire to refer, and I apologise in advance if I am wrong about it. That is No. 67, which says: which he may make a large sum of money, human nature being what it is, he will be inclined to say to himself: "This is an undertaking, a business project by which I may make £50,000—my fees are £1,000 per year," or something of that sort—and unless such a man is a very exceptional man, I would put it to the Committee, which is the most likely course a man will adopt: the project of trying to make £40,000 or £50,000, or being content with his salary or fees of £500 or £1,000 a year? If this matter is going to be a success—and that is what is wanted—it does not require these two clauses. They are new clauses. They are exceptional clauses. They are not required, and may lead to a bad example and to rash speculation on the part of those interested in this concern. I am very glad that the Government have given the Committee an opportunity of considering this question, because it is quite an unusual thing for the Government to interest itself in a great corporation. That course may or may not be right. I am old-fashioned enough to think it is not right. At any rate, if it be right for the Government to interest themselves either directly or indirectly in a corporation of this description, that corporation should, like Cæsar's wife, be above suspicion. It should set an example to all other corporations that are in existence. The example it is setting if these two clauses are included is, in my humble opinion, an extremely bad one. I only desire to say one word more. The right hon. Gentleman commenced his, speech by saying that the staff of the Board of Trade—if I have got his figures correctly—have increased from 2,500 to 3,500.
2,700.
Two thousand seven hundred to three thousand five hundred. The right hon. Gentleman continued that a considerable portion of the work of the Board of Trade had been transferred to other Departments, to the Shipping Control Department, to the Minister of Labour, and so on. It is also true that he said that there had been a certain amount of work added. But if the increase of business has been commensurate with that which has been taken away—I do not think it has, but supposing it has—the staff should remain the same. If the work has not been increased there should have been no increase in the staff, and if the work has been diminished certainly the staff ought to have been diminished. In these days when everyone ought to endeavour to do as much work as possible and to economise in labour, it is not a very good example for a Government Department which has reduced its work, or at any rate not increased it, to increase its staff. I hope I have put the matter quite fairly. I have endeavoured to do so in regard to the trade corporation. I think this is a matter which really the Committee should carefully look into, and I trust that hon. Members will consider the few words I have said on this point.
I desire to associate myself very sincerely with the remarks of my right hon. Friend. In the first place in offering congratulations to the President of the Board of Trade for his able and interesting speech. I am sure the House welcomes him very much in his new position and wishes him as distinguished a Parliamentary career as we know he has had in the commercial world. I believe he has broken the record to-day in that this is the first time a Cabinet Minister in charge of an administrative department has made his maiden speech in introducing the estimates of his Department. There are many matters which the President touched upon which would form very interesting subjects of comment. So far as I am concerned, however, I propose to confine myself to the subject principally dealt with by my right hon. Friend opposite—that is the question of the establishment of the British Trade Corporation. The President of the Board of Trade told us not to approach this subject in a destructive spirit, but rather to let our criticism be as constructive as possible. Excellent advice! May I say it comes too late. It is impossible for us at this moment to make any alteration whatever in any one of the paragraphs in the constitution of the British Trade Corporation. It has already been sanctioned. Money has been raised on the faith of the promise. So far as this House is concerned to-day, there is only one way we can stop the continuance of this organisation, and that is by voting against it in the Division Lobby. That is the view held generally in the House.
I am sorry that a great and important departure like this is brought before the House of Commons at a time when it has no real power, and when the question of the existence of the Government is thrown into the balance against a free expression of the opinion of this House. We know we cannot get a fair Division. I say it is unfair. It is treating the House badly to bring forward a proposal of this kind that we cannot give our honest opinion in regard to it in the Division Lobby. A great proposal of this kind ought to have originated in the House of Commons. The authority of the House ought to have been given for this charter before it was granted to any group of financiers in the City. The word "charter" has not a very pleasant sound to Parliamentary ears. It is a very rare thing to grant a charter in this country. It is one of the few administrative powers left to Royalty in regard to administration. I maintain it is wrong that a power of this kind should be given by any head of any Department without the authority of the House of Commons. We know the charters which have been given in the past, the South African charter and others. How many charters have been given? I say advisedly that in no single case did not the time arrive in the history of these charters when the House of Commons, if it had had the power, would have withdrawn the power of the charter. It is the wrong way to proceed, and the case has certainly not been made out for it up to the present moment.
Let me make one preliminary observation. Not only has the House of Commons no real power to stop this charter in a manner in which it is brought forward, but we are denied the evidence upon which the charter is founded. A day or two ago I asked the representative of the President in the House of Commons whether we could have the evidence upon which the decision was made by this Committee. Why cannot we have it? We have paid for it. Our officials and our reporters have been paid for taking the evidence. Why in heaven's name is the House of Commons denied the right to see the evidence upon which this proposal is based? I was told, I think rather unfairly, by my hon. Friend who represents the Board of Trade in this House—he is not often unfair, and I suppose it was a supplementary question which he was not prepared for, for he has always been very courteous and is invariably fair—what were the reasons why we have not had the evidence. He said he imagined it was a want of labour. That is a paltry, petty, and unfounded excuse! He is taking advantage of the War position in order to mislead the House. Within hours of an order being given, I could guarantee that fifty firms within two miles of this House could have had the evidence printed and circulated to hon. Members. He pleaded lack of labour for the House not having this evidence on these financial proposals.
The Government get all the facilities for the men they require to carry on the official publications. Even, however, if the excuse were true, why should not we have a copy laid in the Library? Why should there not have been forthcoming half a dozen typewritten copies, in order that Members of the House might really have been able to master the facts which governed the decision arrivad at, and the basis upon which this proposed charter is founded? Who gave evidence at the inquiry? We do not even know. So far as I know the Press were denied admission. It was a secret chamber inquiry. We do not know at the moment who were called upon at the inquiry and what interests were represented. Were the interests of the Government represented? Who gave evidence before the Committee? Was the evidence of the chambers of commerce taken? Was the evidence taken of the London Chamber of Commerce, who were totally and entirely opposed to this proposition? Was their representative heard? Was the Foreign Office consulted—the Foreign Office, whose every agent throughout the world is now to be an agent for the British Trade Corporation? Were they asked whether they approved of these recommendations? And the other Departments of the Government, did they have the opportunity of giving their evidence before this Committee? These are facts which we are denied—evidence we, ought to know before we give sanction to the proposal of this Department.
I say, therefore, we have no evidence, nor a case justifying this most far-reaching proposal which is now before us. The President of the Board of Trade said that the credit belonged to the late President for this proposal. I am not so sure that there is any credit to quarrel about in regard to this proposal. May I remind the President of the Board of Trade that the Committee on whose Report this proposal is founded was not asked to inquire into the matters about which they had recommended. The Committee that was set up was a financial committee. Their terms of reference were to inquire into— That was the reference. No suggestion there about starting a great trading corporation. That deals with the question of finance in regard to existing firms, and it expressly says so. That is not what the Committee has turned out to-day. The Committee has not confined itself—which I think it ought to have done—to dealing with questions of finance. It has not devoted its whole attention as to how firms existing ought to be encouraged in regard to the finance of their undertakings abroad. Nothing of the kind! The Committee, it is true, recommended almost unanimously, I think, that the new organisation should be called the British Trade Bank. Who altered that? I presume the Board of Trade have. They suggested it. Why leave out "bank" and put in "corporation"? I should like to know. It is very difficult really to know who is responsible for this final form. My case against this charter is this: that I think the Committee ought to have confined itself to the terms of reference, and to have devoted itself to making recommendation in accordance with the reasons for which the Committee was appointed. In spite of that Lord Faringdon—and it is with great respect I speak of him, for we know him as a very respected Member of this House—in effect says this: "There is anxiety about British trade; there will be more anxiety after the War; British traders are concerned as to the future; appoint me to inquire into it." He is appointed. Then he reports that he ought to be appointed, at a very good salary, and with an interest in every pound that is made, in order, not to finance British firms, but in order to enter into competition with them. Not only that, but to have the whole backing of the British Empire and the British Government behind him in every Chancellory throughout the world. I say that is unfair. It is unjust. It is detrimental to British trade. Instead of assisting it, it is one of the very worst blows that could be given to it.
We are told there is no monopoly. No monopoly! Imagine the case of a representative of the British Trade Corporation in some foreign capital. Imagine a representative, say, of Rothschild or the Bank of England in some foreign capital trying to get business—a great and important concession, it may be—and Brown, Smith and Company, also from London, trying to get the same concession. Who has the advantage? The proprietor may say, "Here is a Rothschild," or "Here is a man with the authority of the Bank of England. I will make a deal with him quickly. The other man I am not quite so sure about, and will have to make inquiries." If it is true about Rothschild and about the Bank of England, how much more true is it about the British Government? I say that the representative of a firm in a foreign capital inquiring for a concession will stand no chance whatever against this corporation when it has behind it the British Government, assisted by the representatives of the Consular Service or our Ambassador. Make no mistake about it. That is the agreement. The agreement is that our Consular representatives in all parts of the world, and our Ambassadors in all parts of the world are to assist directly and immediately in every way the representatives of this corporation. There is no mistake as to what that means. Imagine someone applying for a concession—because, after all, British trade to a large extent is carried out in respect to concessions. He goes to the representatives in a particular capital and asks them to assist him. They say, "What is your proposal?" and he replies, "I am just on the point of getting an electrical installation in a particular town in the neighbourhood." They are bound by this arrangement immediately to report to the British Trade Corporation at home and tell them that this concession is going to be in the market, and of course the directors of this corporation will know before the business can be carried through that a representative of another firm is already active in regard to a particular concession. I say that is unfair and unjust to British trade, and, in my opinion, ought not to be permitted. I say that it is particularly unjust to the merchants who have been doing business throughout the world before. Were any of them called before this secret Committee? After all, the British merchants may not have done as much as they might have done, but they have done a great deal. They have been responsible for £800,000,000 of imports and exports, and it has been the British merchant who has carried the flag of trade throughout the world and who has not had much backing. That is the only case for the financial side of this proposition. Germany succeeded because the German banks were ready to assist financially, but the British banks have always been too conservative. They have not backed up our traders as they ought to have done, and I think there is a case for a trade bank which will deal with finance alone in order to encourage the enterprise of the other banks. But that is quite a different matter from trading and competing in all parts of the world. Therefore, I say the House ought to have given its authority before this was done.
Let me say a word about the Board. Who appointed the Board? I understand it was not the Board of Trade. But who appointed it? Lord Faringdon recommended the appointment of a Board. Did he appoint himself? Because I observe that was the recommendation that was made. Here is a corporation that is going practically to represent the British Government throughout the world. That is admitted. Not one single Member of the House of Commons is appointed. You have got your banks, and I think you have got two representatives of considerable interests in the country. Now imagine the position of these two large manufacturers sitting on the Board representing the British Government, getting the first information as to what is required in a particular part of the country. They have large works in the country. Will they not at once become active and try to get contracts? Of course they will and I can see a great difficulty indeed in a manufacturer sitting on that Board trying to do justice to his own firm who are eager to get contracts, and at the same time taking his part as a patriot and spreading the trade of the British Empire by informing his opponents exactly what he is doing. I think there would be difficulties on that score. I say, therefore, that he bank side of it is good; but the other side, in my opinion, is not justified.
There is to be a capital of £10,000,000. At the suggestion of the board it can be increased to £100,000,000, so that the £10,000,000 is only a sort of introduction to the matter. It seems to me that that is a power which should not be given. It is true the Government say that they have no control; all they do is to lease the prestige of the British Government and the British Empire. They allow their name to be used, but they cannot in any way, and do not intend to govern the operations of this institution. Quite so; but if the institution becomes bankrupt, what about the British Government and the British Empire then in regard to the people who put their savings into the proposal, on the faith, it may be, of the speech made to-day as to the prospects of this remarkable concern? Is the British Government going to step in? Every great undertaking is not a success. If some of the men responsible for this have been in a company where hundreds of thousands have been lost and not one penny returned, they may be as unsuccessful in the future as in the past. Therefore, it behoves us to ask how much responsibility is to rest with the Government and how much with the corporation. No, Sir. The directors, in my opinion, in a dual capacity cannot do justice both to the country and to their own particular concerns. I say it is a blow at enterprise. It is a blow to those who are carrying on the trade to-day and have obtained the success in the past. This corporation will make most of its money by floating companies. I presume they will get concessions through the representatives, probably, of the Foreign Office abroad, and they will offer the company to the public, because they actually say in their report that the very imprimatur of the Government would be useful to the new issues. So they are in this position: They are allowed to make hundreds of thousands, on paper, so to speak, by new flotations, and all the directors every time are going to make their large share of the profits in addition to the thousands of pounds set aside for directors' fees. In that way there is no limit whatever to what might be made.
What is the position of this corporation with regard to new issues? I see opposite my right hon. Friend, who, I think, at the moment is acting as chairman of the New Issues Committee. Has he considered the relations which will exist between the New Issues Committee and this corporation, because this corporation is granted power to float companies both at home and abroad. Are they to go to the New Issues Committee and get permission, or do they override the New Issues Committee? People desiring to get new capital will go to the British Trade Corporation, because they have the power in future to do what is denied at the present time. Here, I think, is a particular injustice, because many private firms who have made their success without the assistance or recommendation of the Government have tried time and again since the beginning of this War to get the right to obtain new capital from the shareholders and from others, in order to do the very work abroad in regard to trade which this corporation has got to do.
They have been denied the right. They have practically got to stop their operations. But this new corporation, brought into existence by a committee, and recommending themselves as directors, can issue as many companies as they like without any consideration on the part of the Government, the New Issues Committee, or anyone else. I do not think that is fair. I think you are giving an advantage to this new body which it ought not to possess. It has been stated that there is no guarantee. No guarantee is required. The fact that every representative of the Foreign Office abroad is to be informed that the Government give this company their sympathy and support is enough. No further guarantee is required. That name will be used to great advantage, and will no doubt serve the purposes of the corporation. I understand the right has been claimed to take the officials of any firm in any part of the world. That is unjust. Firms have built up trade, and their men will be secured at perhaps greater salaries than any private firm can pay.
I say, with all respect, the House of Commons should insist now upon its rights in expressing its opinion with regard to this matter. I can assure my right hon. Friend it is not a question of his personal position at all. It is not that in any way. As he says, it was there before him. But here you are setting up a tremendous precedent, and dealing a severe blow at the development of trade, the very purpose for which it is proposed to be set up. I say it is a thing for which the House of Commons cannot take responsibility. I say no sufficient case has been made for it. I say the departure is too big for us to sanction without adequate inquiry. I say it is a dangerous and mischievous innovation, and until a carefully selected Committee of this House inquires into the whole matter, the House should not give its sanction, I say we have no right to lease the prestige of the British Government to a group of financiers in the City, who are out not, as my right hon. Friend said, unstintingly and without reward as hundreds of men are working in Government offices to-day. The most careful paragraph in all these articles is one that provides for the remuneration of the directors. I would like to ask how many positions of great financial value have been promised if this thing goes through. We ought to know to-day how many people have been pro- mised directorships, because they have still fifteen on this concern to give away. We know perfectly well that the banks of the City are against this proposal, and I must say I was sorry to hear the President of the Board of Trade say that he had called the bankers together to discuss this question. Why, this has become practically an official bucket-shop. It has power to deal in shares. It can do everything a bucket-shop can do at the present time, and the Government are calling them together in a City parlour and saying how many shares they can take, over which they have no control and responsibility. That is going too far. I say that if it is a good concern, let it stand on its merits. Why should Greenwood and Company, which is a very respectable issuing house, be selected by the Government and all other issuing houses be ignored? It is, as I say. not fair to them, and I do not think it is just to the people generally. I say it is going to narrow the area of enterprise, because the moment this corporation is known to be in a certain district, so great will be its advantage against competing traders, that the British trader will not make any effort thereat all. I say we are establishing here a huge monopoly. We are establishing a dangerous precedent which may grow into millions over which this House will lose control. That is not the way to help British 6.0 P.M. trade. You may help it with finance and get your bankers to encourage it, but you should not set up a rival concern represented by certain financiers in the City who are to have the run of the Consular service and the Foreign Office. I hope the Government will withdraw this charter. From its very inception the whole matter has been treated with secrecy until the Government were forced to give us an opportunity for discussing the matter, and but for the action of the hon. Member for Wandsworth (Mr. S. Samuel) I do not think the Government would have granted this opportunity for discussion to-day. This discussion comes late, but it is not too late to object to what I believe to be a bad and indefensible proposition.
After the slashing attack which has been made by the right hon. Gentleman opposite upon the proposals embodied in the charter sanctioned by the Government, it would appear that the feeling of the House has been carried away by his unrivalled eloquence. [HON. MEMBERS: "No I"] Perhaps I might be allowed to say not what I believe to be the rhetoric of this question, but the business proposition by which the present Government is now confronted, as was its predecessor. My right hon. Friend, as I have already said, has made a slashing attack upon the scheme, but he has not said one single word from beginning to end about one of the gravest problems that British industry and commerce was faced with before the War, and which it will be faced with after the War, namely, the enormous financial facilities which were given to German trade through the Deutsche Bank and the Dresdner Bank, and to the immense facilities which will be given when the War is over to one of the most powerful financial syndicates the world has ever known, with its headquarters in New York. The difficulties in which British traders were placed before the War have been described at innumerable conferences and at meetings of chambers of commerce in every part of the country—in London as well as elsewhere. I am sure my right hon. Friend, if it had been his business to be in constant touch with the traders of this country engaged in the export trade, would have known that the most constant complaints they made in the whole of the last generation has been in the first place that whenever they were competing for business abroad they invariably found that the financial facilities given by foreign banks were far greater than their own; secondly, that the private banks engaged in this business, whose cause my right hon. Friend so energetically espoused, were not showing the amount of enterprise which was believed to be necessary; and thirdly, that the foreign Governments were devoting the whole of their power in many parts of the world, not to extending their military organisation or establishing strategical headquarters, but were actually ousting British trade through the influence they were able to exert at the Embassies and Consular offices.
Let me describe this point in my own way. I quite understand the interest which my hon. Friend the Member for Wandsworth takes in this problem, and perhaps he will allow me to put the case which has appealed not only to my successor, but also to the Government of which I was a Member. The traders came to the Board of Trade again and again complaining of the lack of facilities given to them, and again and again they stated that they were beaten, not on their merits, but because of the superior influence brought to bear in these great neutral markets, and they asked: Was it not the duty of the Government to take some steps to solve this problem to increase the facilities, and if possible to induce those now engaged in that kind of business to extend their operations? I hesitate to refer to the speech which I made on a somewhat similar occasion in this House, but perhaps I may be allowed to say that two years ago, in referring to this question here, I made some complaint of the too conservative habits of our banking houses. I remember at the time I said that the very honourable Members who are now cheering my right hon. Friend opposite equally cheered that remark, and within a few weeks of that statement the chairman of the Joint Stock Banks declared that they were not conservative, but, on the contrary, were the most enterprising men in the world, and he asserted that if they showed any more spirit of adventure they would be endangering their banks and would consequently do more harm than good. We know perfectly well the basis upon which British banks rest, and it is entirely due to its conservative character. That is an enormous advantage which we have possessed for nearly the whole of the nineteenth century, and it is because our banks have been so conservative in the past that they were able to stand the stress and strain of the opening months of this War. It was because of the position they occupied through the desire to avoid undue adventure which made them as strong as any banking institution of any country in the world. Some suggestions have been made about our fiscal policy, but as that is controversial I shall not deal with it now, because we have enough controversy without that subject to-day. I must point out that if this be the correct function of the joint stock banks, it is clear you could not expect them to endanger their share capital or endanger the deposits with which they are entrusted. Like the President of the Board of Trade I had conferences with bankers on this subject, and I collected a great variety of views from the City and the provinces. Let me here point out that the provinces have a right to be heard on these matters, because it is not in London that you find the seat of the great export trade, but it is in the manufacturing districts of England and Scotland.
What did I find when I conferred with them? They put their case for the existing system of British banking with undoubted ability, and I have no doubt they were right. They said quite frankly, "If we are to do anything in this matter and be linked up with it, it must in no way endanger our deposits, because our depositors always know that their securities are intact and our institutions are sound." As a result of many conversations, I formed the view that much the best arrangement that could be made for them to meet the kind of work done by the Deutsche. Bank in the past was for the joint stock banks, in proportion to their size, to become shareholders in one great organised concern for doing this class of business. I thought some of the banking houses should come in as well, but unless you have one institution to do that work it would not be strong enough to hold its own against those great allied German banks, and the great corporation which has its headquarters in New York. I do not know how anyone could have come to any other conclusion than that we must have only one institution.
Why only one?
Because you cannot have two strong enough. It is impossible at the present time to expect a very large amount of capital to be invested in a concern of this kind. The strain on capitalists by our War Loans, which may not have come to an end yet, by the continual limitations of bankers, and by the Government urging us to put our money into bonds and Treasury Bills, all these things make it increasingly difficult to get together a large amount of capital for this purpose. While I was at the Board of Trade I saw the representative of this great New York syndicate, who came over to this country to try and link up, if he could, the affairs of that syndicate with similar institutions here, but he found none of them large or important enough or concentrated enough for his purpose. Consequently he came to the Board of Trade and asked if I would give him a letter of introduction to our Ambassador at Petrograd in order to commence operations on the introductions that he would obtain from our Ambassador. I promptly refused. I said that our Ambassador was there to look after British interests and not American interests. He knew perfectly well, in a country like Russia, that unless you could get our representatives there at your back you are placed at a disadvantage. That was the first thing he asked for. I asked him in reply why it had been necessary in New York to embark upon one syndicate. He said that all the individual banks have their agencies abroad, and they are glad to bring this kind of business, but we have all come to the conclusion that unless you have one concentrated concern, with the whole of the necessary capital available to push these great schemes abroad, it was doomed to failure in competition with the great German banks. The American experience would have been our own, and I knew that large sums would be necessary if this business was to be a success at all.
Is the American concern a monopoly?
It is a monopoly to this extent, that it has no rival. What does my hon. Friend mean by monopoly? He means that that work should be done by one concern only, and this will be done by one concern. We have heard a good deal about this charter, but what difference is it going to make whether it is a monoply or not? It will be a monopoly whether it is under a charter or under the Companies Act. Apparently the objection to this business is that a charter has been issued. My successor in office is responsible for the issue of the charter. I do not know that there has been any criticism upon the issue of that charter which carries anything like such weight as the criticism of my right hon. Friend the Member for the City of London (Sir F. Banbury) on certain clauses in the charter itself and the deed of settlement. Of course, those are details which may be open to discussion and severe criticism, but the main idea of giving one central institution the whole of this power is supported by all the great exporting centres, and by all those who have had experience in competition with German houses, and by all those who have been in office and have had any responsibility for this kind of business. My right hon. Friend opposite says that if you grant the charter giving a monopoly it is a blow at existing houses. I should be very much interested to know at which existing houses this will be a blow. I do not know whether the right hon. Gentleman opposite is prepared to answer that question. In the Report of the Faringdon Committee, the only document which I had before me, it is stated in paragraph 24 (vi.):
"It should enter into banking agency arrangements with existing Colonial or British-Foreign banks wherever they could be concluded upon reasonable terms, and where such arrangements were made it should undertake not to set up for a specified period its own branches or agencies. It should have power to set up branches or agencies where no British-Foreign bank of importance exists."
Does not my right hon. Friend see that if it were carried out the banks abroad, through their representatives, would have the knowledge what their competitors were doing in that particular part, and could therefore act accordingly.
Yes; but my right Friend has not given me time. I was going to refer to paragraph 8, which reads:
"It should endeavour not to interfere in any business for which existing banks and banking houses now provide facilities, and it should try to promote working transactions on joint account with other banks, and should invite other banks to submit to it new transactions, which, owing to length of time, magnitude, or other reasons, they are not prepared to undertake alone."
That is not in the charter.
That was the recommendation laid before me, and, if my right hon. Friend will allow me, I shall be prepared to defend anything up to the point at which I left it. The Government is quite capable of defending itself with regard to what has happened since. I say that Articles 6 and 8 of those recommendations are absolutely justifiable. It was on the basis of them that I asked Lord Faringdon if he would collect opinion in the City, and if those are carried out the whole complaint of my right hon. Friend about existing houses is swept out of the way. His complaint, I presume, would be that these two recommendations do not appear to be safeguarded in the charter. If that is the only complaint—
No, it is not the only one.
That I take to be his principal complaint. If that is so, apparently what is necessary is that the charter should be amended in such a way as to carry out the recommendations of Articles 6 and 8, and, if that were done, I need hardly say that I should support him in the proposals. I take it that Articles 6 and 8 are an essential part in the recommendations of Lord Faringdon's Committee's Report. If those two things had been incorporated in the charter, a great deal of the attack which my right hon. Friend has delivered this afternoon against this scheme would have been groundless. When the opinion of these Joint Stock Banks was collected, it appeared to be clear that there was the greatest trouble in getting them all to act together. They are by no means all excluded; far from it. Some of the most important banks, I understand, are in the closest association with those who are responsible for this scheme. I could name a good many, and certainly some of them of the very highest standing abroad as well as at home, and some of the biggest of the merchant houses also are connected with this scheme. It would have been better if they could all have been roped in, but from the mere fact that some of them refused to come in were we definitely to say that we were not to equip the traders of this country with the same financial advantages as their competitors abroad? The right hon. Gentleman has overlooked the interests of the exporting trade of this country. He has not laid enough stress upon the trials which they have experienced in the past, and which they will have to experience in the future. My right hon. Friend may say "finance" with disgust across the floor of this House, as though it were the first time he had heard of finance, but you are bound to base British trade largely on finance.
The right hon. Gentleman totally misunderstands me. Up to that point I am entirely with him in regard to finance. The Chambers of Commerce ask for assistance in finance. This is not finance; it is direct competition against British firms.
I fail to understand what my right hon. Friend means by "finance." Does he imagine that this concern, having got its capital here, is likely to close its door and live on its capital. It means to use its capital as a banking concern.
As contractors.
I read the charter for the first time yesterday. There may be in the definition of the charter a good deal of restriction in its terms, but the whole business of this thing from the very beginning, and the only basis on which it can get its money in the City, is that it is to assist by banking facilities the export trade abroad. If it is not to do so, my right hon. Friend is quite justified in saying that the charter ought to be cancelled. Will the Government get up and say that? I ask the representative of the Government. Will he get up and endorse what my right hon. Friend has said, that this is for the purpose of finance for contracts and is not for the benefit of the export trade? If he says it is not for the benefit of the export trade abroad, then I join with my right hon. Friend and will go into the Lobby with him. But I do not believe any such thing.
Will it lend money like the Deutsche Bank?
Yes; I understand this is intended to be a competitor of the Deutsche Bank, transacting business on the same basis, in order that our merchants may have the same facilities. If that is not so, then it is for the Government to say why they have failed to put it in the charter. It was in Lord Faringdon's Committee's Report, which was the document that I carried away with me, and it was the basis on which Lord Faringdon was to go and get assistance in the City. If the Government will get up and say that it is not in the charter, I am quite free to say that the charter is unjustifiable. If it is in the charter and if the charter incorporates all that is to be found in Lord Faringdon's Committee's Report, then I am prepared to go into the Lobby in support of the Government. I do not see any legal representative here, but, if there is, perhaps he will let us know whether the charter does that or not. I must ask the Committee to consider for a moment the position in which the Government is now placed. First of all, it met with a demand, coming from every trade in Scotland, Ireland, England, and Wales, for increased banking facilities abroad, which the joint stock banks by their very nature refused to perform themselves. The next thing that they found was that when the joint stock banks were approached they failed to combine for the very purpose for which British trade was hankering abroad. What is the Government going to do? Is my right hon. Friend the President of the Board of Trade to fold his arms and say that the existing houses must go on just as before, and that the exporting merchants are to go to Messrs. Smith and Company, or to this or that chartered bank, and are to be content with the facilities now avail- able? There are some of my hon. Friends who might be prepared for that. I can only say that those who expect to see British trade expand after the War is over know perfectly well, if there is any attempt whatever to restrict the financial facilities given to the exporting houses abroad to those obtaining before the War, that we shall not be able to hold cur own. I state that without the least equivocation and after the fullest possible inquiry when I was in office. My right hon. Friend says, "Let us look at this syndicate"; and I must admit that, with his usual vigour, he has succeeded in denouncing the syndicate. They are just like other business men; they are in business for their livelihood.
To make money.
In what way are they more to be blamed than any of the merchant houses to whom he said this would be a blow?
I am not blaming them, but the Government.
It is very difficult to understand exactly what my right hon. Friend objects to in the main outlines of the scheme short of the charter. I leave out the charter; I am not responsible for it, and I do not know whether it covers everything that Lord Faringdon's Committee accepted and decided should be in it. One of the charges which my right hon. Friend made against these gentlemen was that they were going to be rewarded, and were going to make a lot of money out of their transactions. My experience of business men is that they all like to be rewarded.
Why not?
My right hon. Friend's friends, as well as those who are receiving the support of the Government. The only difference between them and those who are now likely to operate under this charter is that these gentlemen will have a charter and some, not all, of those for whom the right hon. Gentleman speaks will be without a charter. He said that there never had been a charter which had turned out satisfactory. He must have forgotten that some of the most prosperous and best of our concerns are working under a charter. He said "never one." What does he say about the P. and 0. Company, which operates under a charter? What does he say about that great concern, the Royal Mail Steam Packet Company, which operates under a charter? What does he say about the Chartered Bank of England? My right hon. Friend does not rule them out as. being wicked institutions to which the Government ought never to have granted a charter.
They do not get the facilities, or anything like the facilities, granted by this charter.
They are not Government agents.
My hon. Friend is mistaken. They perform great services. for the Government. Do let us get a sense of proper proportion. I cannot understand the kind of criticism that is levied against these gentlemen who have combined together for this purpose, and have got a charter as many other businesses have got a charter.
My right hon. Friend's attack on this charter was that it did not give financial facilities to exporters, but did give the power to compete with exporters. I will read sub-section (b) of clause 2:
"To carry on business as contractors, merchants, or traders on their own account."
My company have become the biggest exporters in the world, in spite of difficulties as regards financial facilities. We do not require competition in our business. We desire the financial facilities which the American syndicate have given our competitors in America; but instead of being placed in a better position we should be placed in a worse position.
It is quite clear that the Committee is now suffering from some vagueness in the definition of the charter. When we have one of the legal representatives of the Government here, perhaps he will tell us definitely whether the use of the word "contractors"—
"Merchants or contractors."
I do not mind how they are named, but we ought to have some clear guidance from the legal authorities of the House as to whether or not these words do give power to the syndicate to compete with my hon. Friend, from whom let us keep away as much competition as possible, or with other existing houses, who wish to have no competitors or as few competitors as possible.
That is not the point.
I have listened with patience to my right hon. Friend, and I have been a great deal interrupted. If this syndicate is to be purely an exporting syndicate, then God forbid that we should have it, but that certainly was not the object with which Lord Faring-don's Committee's Report was handed into the Board of Trade, and those were not the recommendations made by the Committee. I do not believe, however, that is a fair definition of the syndicate. If there is any danger about it, it is very easy to amend and to limit their operations. If there is any doubt about them operating in a different way or in a more restricted way than their American competitors, then by all means let us get them on the same lines; but what is necessary for the export trade, not only the export coal trade and the largest firms, but the smallest firms also, is that there should be increased facilities and facilities which they have never possessed before.
The last point is the relation of the Foreign Office to our export trade. I know of no more difficult subject for any Government official or Minister to discuss. If any attempt is made by our representatives abroad to give support to a great firm there is always the possibility of the rivals of that firm talking about unfair selection. If, on the other hand, our Foreign Office representatives abroad rigidly decline, as they have done in many cases in the past, to give any assistance to our enterprising firms abroad, then our enterprising firms abroad very frequently have to go to German Consular offices for the very assistance refused them in our own. That is intolerable. It is no use imagining that you can sweep away the whole of these proposals and put nothing in their place. It is absurd to say that the existing houses, the existing arrangements and the existing custom of the Foreign Office are ample for our foreign trade. If I thought that our Foreign Office and foreign representatives abroad were going to have nothing to do with our foreign trade in the future, I should say, without the slightest hesitation, let us have a special branch of Government strictly charged with the very object of helping our merchants and exporters abroad. Everybody knows there is a controversy which has raged for years as to whether our consular representatives abroad, on their commercial side, should be under the control of the Foreign Office or of the Board of Trade. I believe that you will constantly have diplomatic difficulties. You might possibly have difficulties at home when our Ambassadors are asked to play the part of commercial travellers, but there is a great deal of difference between asking our Ambassadors to play the part of commercial travellers and leaving the whole of our commercial trade abroad alone or unaided without the protection of our own representatives abroad. The establishment of Trade Commissioners, to which the right hon. Gentleman referred in his opening speech, has been one of the best things that has happened to British trade in our Dominions where, in many branches, we were being rapidly ousted. I did not gather whether the new Commissioners are to be restricted to the British Dominions or are to be placed in foreign countries.
Only in British Dominions.
This is a time when the system of British Trade Commissioners, who have done such good business and who have done so much to preserve our trade in the Dominions, might well be extended to foreign countries. At the present time there is a great deal of work which can only be done by representatives of the British Government and with representatives of the subordinate Governments. Are we only going to give the same support to British traders that is given to their foreign competitors? It is carrying the doctrine of laissez faire to an absurdity if you say that British representatives abroad are never to interfere in trade matters. The trouble is, how are they to support and who are they to support. If there are half-a-dozen firms in for one contract abroad it will not do for the Foreign Office to pick out one and give the contract and the support to it. If we have one great institution which is to finance our export trade that institution ought to have behind it such legitimate support of our Consular and Ambassadorial services as may be of assistance to them. I believe you can only do it through one institution. It ought to be the strongest which London and the provinces can produce. It ought to be based mainly on the lines laid down by the Faringdon Committee. Any institution set up on those lines I should most heartily support. As to how far the charter carries out those objects I can say nothing. I am not a lawyer. I saw the charter for the first time yesterday. If it fails to carry out those objects let us have it amended, but do not let us stand in the way and do nothing merely because we dislike its form.
I have listened to the Debate, and if I compare it with the Report of the Faringdon Committee and the charter and the petition there is very little indeed to show whether any assistance is to be given to any of the thousands of British merchants throughout the world. The President of the Board of Trade says that the charter confers great powers and privileges upon this new institution, but, in fact, there is no single obligation upon this new institution to do anything at all. If anybody in this House can say what obligation rests upon this new corporation I should be very much obliged to have it pointed out to me. Under the charter they are to do any and every business which has been done by our merchant houses in all parts of the world. We have merchant houses in America, China, and India, which have been there for three or four generations. The right hon. Gentleman the Member for Dewsbury (Mr. Runciman) asked my right hon. Friend the Member for Kirkcaldy (Sir H. Dalziel) to give some names. I could give names that are household names in the commercial world, although probably the commercial branch of the Board of Trade has never heard of them so badly informed are they. There are thousands of merchant houses who have developed the commerce as distinct from the business of this country. There is a distinct difference between commerce and business. I notice that on most committees appointed by the Government there is no commercial man. The banker knows his business as a banker; the shipowner knows his business as a shipowner and the manufacturer knows his business as a manufacturer, but a merchant has to deal with a whole business; he has to do banking, shipping, deal with merchandise and everything else. I see that there was one member of the Committee, Mr. Gaspard Farrer, who refused to sign the recommendations of the Committee. No doubt the other gentlemen who signed it are of the highest standing in their respective businesses, but I am informed—I have made inquiries in the City of London and other places—that no single commercial man was asked to give evi- dence before this Committee. If the Committee were anxious to find out anything about the foreign trade of this country, who were the principal people to whom they should have gone? The merchants who have done that business for generations, and who have created an export and import trade for this country up to the present time amounting to some £800,000,000.
The right hon. Gentleman mentioned the German method of carrying on business. Apparently he is unacquainted with the constitution of the German Empire. The German Empire is composed of various States—Bavaria, Saxony, Würtemberg; Prussia—and all those States have their manufacturers, and they demand and receive the assistance of the German representatives in every part of the world. I have never yet known of a case where a German representative has refused to assist one of his nationals. We must recollect that the system of the German banks is entirely different from the system of the British banks. If we go back to 1870 and recall the condition of Germany in those days, we find they had no commerce at all. The German banks went to the small manufacturers and acted as company promoters. The German banks established companies by giving them capital, issuing the shares and taking as their remuneration deferred shares in those businesses. As the businesses developed and they required fresh capital, the German banks issued debentures or preference shares, in the same way as is done in this country. The Board of Trade, when they talk of an institution like this with a capital of £10,000,000 sterling, do not seem to realise that the joint stock banks and the large banks in this country have at this moment, I should say at least, £300,000,000 sterling advanced to manufacturers and traders of this country. I should like to ask the Board of Trade how far they think the £10,000,000 capital, which this corporation is to have, will go towards the proposals that are made by this trading corporation? The principles of this corporation are not to assist the existing traders or to assist trade generally in the country, but to assist a group. If you read the Report of Lord Faringdon's Committee, you find it is proposed that this corporation should have agents in all parts of the world, and that they should send representatives to the different foreign banks, virtually to learn the business. The Board of Trade should not be surprised that the foreign banks resisted such a suggestion, because they saw perfectly well that this institution would naturally be anxious to educate its people and would simply send their representatives out to learn the business of the customers of the banks before they established themselves, and therefore they would simply be helping them to kill their own trade.
That is not the objection to this institution; the objection is that when they get to work there will not be a single interest in the country that they do not attack. Instead of the merchants being able to look upon the British Government as a support, they will have to consider whether any information they give to the Foreign Office will not be imparted immediately to their competitors. In these circumstances it is difficult to believe that this corporation is going to do any good at all. I should like to know from the Board of Trade whether this corporation is going to do in all parts of the world the business which is now being done by the merchant houses—that is, the business of buying produce abroad and selling the manufactured goods of this country abroad? In the City we consider that, owing to this War, it is improbable that the German banks will be in the strong position they were in before the War. They came into competition with the British merchants who had acquired a tremendous ascendancy in the commercial world. To try to get the British merchants out they introduced the very new principle of long credits, a system that is unsound both from the bankers' and from the commercial point of view.
Did not the Germans capture Russian trade by giving long credits, and are they not a necessary feature of a new departure?
We consider at the present time that it would be an opportunity to try to revert to a sounder basis, to the system that existed before that insane competition took place, at least so far as credit is concerned. We have never had any statement that it is the intention of this new corporation in so far as their capital goes, to give these extended credits even without the necessity of doing so by the German institutions. The position, of course, has become serious if we are to see this corporation going in for very long credits. It means that their capital will not last very long if they are going all over the world, as is proposed, and the consequence will be that they will go in, in accordance with their charter, for accepting bills, they will go in for taking money on deposit, they will be able to advertise that they are a chartered company, and they will be able to take money on deposit and pay probably very much higher rates than the joint stock banks can afford to pay.
The right hon. Gentleman said they will not take money on deposit.
But they will. They will not take money at short notice, but they will take it at six months' and twelve months', and they will be able to pay a very much higher rate than the banks are able to pay, bêcause they will be giving long credits abroad in China and South America, and places like that, where they can obtain 9 per cent. and 10 per cent. per annum for the credits they give, and the consequence will be that those concerned, where the directors' remuneration is a percentage of the profits, will undoubtedly be tempted into very great over-trading, and that is one of the great dangers that we see in the City of London in connection with a company which is chartered by the Government and privileged in every way. It is unsound business, it leads to excessive overtrading, and eventually, if they take these deposits and give these long credits and any financial crisis comes upon any of these countries, they must immediately get into difficulties, and there is nothing whatever to prevent them, because they will have every facility at their back, from going into gigantic speculation. They can do the most speculative and risky business without consulting, because the directors can give whatever powers they like to the managing directors, and, seeing that they are out for making money for themselves, and naturally they want to make money for their shareholders, there is nothing to prevent them going in for the most gigantic speculation, which is bound to bring them to grief sooner or later.
The most objectionable question in this charter is the one which gives the right to this corporation to represent the Government. In fact, the clause is far wider than that. It says: House to demand of the President of the Board of Trade that instructions should be given through the Foreign Office to our Ambassadors and representatives abroad not to wait until this corporation is started, but to say at once that every British merchant has the confidence of the British Government. It is one of the biggest outrages that such a thing should be contemplated, and it shows the spirit of the whole thing that we have been waiting for years and years: we have been craving all over the world for help; we ask for a glass of water and we get a glass of bad vinegar; and here to-day we are told, as the First Lord of the Admiralty said in the Nigerian Debate—it is perfectly true, and is proved by this document—you only have to be a British merchant not to be trusted by British officials. I ask the President of the Board of Trade whether he will take any steps to inform the representatives of the Government abroad whether British merchants are to have their confidence and are to receive the same support as is given to this new corporation. This corporation is to have a technical bureau which will have the assistance of the commercial representative. This new corporation can do what it likes, but I think the British Government ought to establish everywhere —in fact, they are doing so; they have sent out five representatives to China, and they have sent out other people, and I claim that every British merchant throughout the world who likes to register his address at the British Consulate should receive the reports from those representatives of the Government, and at the same time as the British Trade Corporation receives them. There should be no preference, and no communications should be made to this corporation which are not made at the same time and for the benefit of the whole British commercial community throughout the world. This corporation has done absolutely nothing for the country, whilst the thousands of merchants have done an enormous amount of good in the development of British commerce and industry.
There is another thing I want to point out in reference to this question of the British Trade Corporation having the support of contracts or concessions. I do not want to say anything personal, but this corporation, like all other merchant houses, will have the representation of certain industrials. No house can represent a dozen firms in the same line of business in the same place, because they are in competition with each other. A great many different industrials and large contracting firms and ironmasters have their agents abroad. It stands to reason that, when any concessions are going for tramways, railways, or gasworks, one of the conditions which will be put into the contract is that the representatives of this trade corporation, whoever they represent in England, will have the contracts for that material, and I should like to ask the President of the Board of Trade how he is helping the hundreds of different industrials in this country by giving a charter and by giving the assistance of the Government agents and representatives abroad to this one corporation which represents one clique of manufacturers and industrials only? I want to ask the President of the Board of Trade this, because it is very important that the industrials should know. It has been stated that this corporation is to assist industrials by lending them sufficient money to carry on their business. There are thousands of industrials. The first thing they will want to know is where they are to go to get the assistance which has been promised them by the President of the Board of Trade. They will also want to know, in the event of these hundreds, if not thousands, of manufacturers going to this corporation for assistance and being refused, what redress they have, to whom they are to apply for redress, and what obligation there is on the part of this corporation to assist anyone but themselves. Lastly, I want to know not for myself, but for the industrial community, how the Board of Trade will act in the event of it being shown that the corporation is either unwilling or unable to assist the industrials of this country?
I beg to move to reduce the Vote by £100.
The proposition under discussion fills me with grave disquietude of mind, and it suggests that the after-the-war-reconstruction is fraught with the greatest perils unless the direct and immediate supervision of this House is effectively exercised. We are appointing all sorts of 7.0 P.M. companies and Commissions consisting of so-called business men, who are not Members of this House, and entrusting them with all kinds of plenary powers. They are not accustomed to our methods of discussion, they are not familiar with the traditions of this country, they do not; understand the working of our Constitution, and, if we do not mind, instead of preserving that grave dignity and impartial method of procedure with respect to our traders that characterised this country in the past, we shall hand over our commercial management to a system of syndicates and bucket shops. The late President of the Board of Trade advocated a scheme with which I entirely concurred, but which had no remote resemblance to the scheme proposed in this charter. Those of us who have any connection with export trade are familiar with the circumstances under which we are faced by competition from German traders, financed by their own banks, and we were expecting, because we were led to expect, that some great scheme was to be devised by the Government by which, through joining together the great banking institutions of this country, we might have substantial assistance for our foreign traders for our export business. The advantage of that and of the combination of the great banking institutions in this country are apparent at once. You have there large corporations who are concerned with no one particular trader and with no one particular business, but who are accustomed and whose interest it is to promote the interests of traders of the community generally. That we can understand and that we can support. But what is the scheme that is submitted to us to-day? It is a scheme by which a new business, a new corporation, a new company, with all kinds of special interests of its own, is to be allowed to have concessions and a trading scheme with export merchants, to pick and choose its own customers, and, where it desires to do so, to filch the business of these merchants.
I can quite appreciate that the gentlemen in question who are connected with this concern are honourable men, but of course they are connected with other business enterprises. They are directors of other concerns. If I wanted to export some goods to a foreign country, and it so happened that my rival was trading with one of these directors in some other business, what do you think my chance of getting assistance would be? I do not suggest that there is anything improper in a director of this concern giving a preference to someone else with whom he is trading in some other business, but I do consider that the responsible Government officials who gave him that opportunity, to say the least of it, are not shrewd men. Suppose I went along with a proposition to this British trade corporation and said, "I have got an article that I want to export to certain Colonies and certain foreign countries, and I want you to finance me to the extent of £50,000." They look at my proposal and my scheme and they say, "This is a very good line; it will pay us to undertake this." They have got the secrets of my process, which I have divulged to them in order to prove the wisdom of their backing my enterprise, and they turn down my application. They could form another company, and they could finance and underwrite that company in order to exploit my scheme and my brains. I do think that these great business men as they are called, who are not Parliamentarians—they would be disqualified if they had been Members of the House of Commons from taking part in these proceedings—walk into the simplest kind of trap that the mind of man can devise. In this case it is we who are asked to walk into the trap. Let us do what we can to assist British trade, but do not let us equip an independent trading company which can go out into the world to get fresh trading concessions, carry on fresh business, compete with our present export trade, and in the long run do us more harm than good. I will not worry the House by reading the details of this charter, but you can take any sentence from it and you will find how simple it is for them to carry on business as contractors, merchants, or traders on their own account. We have asked for bankers and you offer us rival merchants. We have asked for financial assistance and you offer us people who can form companies and underwrite their shares and deprive us of our business. Take paragraph (c) of clause 11:
resumed the Chair.
Royal Assent
Message to attend the Lords Commissioners.
The House went; and having returned,
reported the Royal Assent to—
Supply
Again considered in Committee.
Question again proposed, "That a sum, not exceeding £238,923, be granted to His Majesty, to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1918, for the Salaries and Expenses of the Office of the Committee of Privy Council for Trade and Subordinate Departments." [NOTE.— £180,000 has been voted on account.]
I was proceeding to develop my proposition that the scheme embodied in this charter is not the scheme which we were led to expect. It does not in any way comply with the necessities of the case, but gives us in place of a bank a trading syndicate. I can illustrate that by calling attention to the fact that Lord Faringdon's Report suggests that the bank should be called The British Trade Bank. In this particular scheme the promoters have had sufficient self-respect and sense of propriety to refrain from using the name British Trade Bank, and have called it British Trade Corporation. In that change of name we have an illustration of the entire change of policy. I have no doubt that members of the Committee have read through the various clauses of the charter, and I will not detain them by referring to these in detail. I am rather interested, however, to observe, as I happen to represent the city of Sheffield, that one of the other schemes which the corporation has power to carry out is the establishment of armament works. That is a side line in which financial assistance is to be given to British trade in its export direction.
There is only one other point, but it is even of greater importance than those to which I have already referred. I am very jealous for the honour and reputation of the British Empire. We have preserved our financial integrity. We have established a reputation and position that are to our great credit and are no mean asset in the carrying on of our foreign trade, and I am apprehensive when I read that a charter is to be granted to a trading corporation of this kind, with directors such as an ordinary business enterprise would have to guide its operations, and that this corporation have power to embark upon speculation of the most expensive kind. I cannot imagine any memorandum of articles of association of a speculative company, devised in the City of London by the most accomplished solicitor in that direction, giving wider powers to enable directors to indulge in wild cat schemes of speculation of any description that occur to them, and I repeat that when I realise that the corporation have powers of that description, and are incited to these speculations by the substantial portion of the profits which the directors get as the result of these speculations, dealing largely with other people's money, and that they have the prestige of the British nation at their back and the goodwill and active assistance of the Consuls and Ambassadors abroad, then I say that they would be something more than human if they refrained from plunging into extensive speculations with those inducements held out to them.
All I am concerned about is this: that suppose this corporation should indulge in considerable overtrading, suppose they should plunge into enterprises of all descriptions that would be repulsive to the general instincts of the British nation, that they should engage in plantation, in the employment of labour, of Chinese labour for all I know, that they should embark on schemes which would be grave discredit to the fair name and reputation of the British Empire, and that all those things had the sanction of the Foreign Office, with the active participation of their Consular Service in inquiries and investigations, do you think that foreign nations will discriminate between the responsibility resting upon this trading corporation and the responsibility resting upon the Government of this country? I do not think that they would. I think that if this corporation were guilty of any undesirable speculation, if they employed labour under conditions offensive to the instincts of this country, then in the view of any foreign Government who realised that, all the people of our own Colonies who realised it and who read through this charter, and saw the extent to which they were recognised and even patronised by the British Government, the responsibility for these deeds if they committed them, for these delinquencies if they were guilty of them, and for errors of judgment in financial speculation, would not only recoil upon them but also upon us, and would bring grave disgrace and discredit upon the British Parliament and the British Empire. For these reasons I cannot resume my seat without moving a reduction in the Vote by £100, and I propose to carry this reduction to a Division in which I hope I shall be supported by the general concensus of opinion of the House, and I trust that the Government will have the wisdom to withdraw this ill-considered adventure in a scheme of wild cat speculation.
I think that we have hardly ever seen any scheme or travesty of a scheme introduced by a responsible Minister, or which has the approval of a responsible Minister, which has been so strongly and universally condemned in every section of the House as this particular scheme has been this afternoon. In common with other Members I have wondered at the evident reluctance of the Government during the last week or so to give my right hon. Friend the Member for Kirkcaldy and others any information concerning this particular scheme. I have ceased to wonder at that reluctance in the light of this afternoon's Debate. From first to last, except for the explanatory statement of the President of the Board of Trade, we have not had submitted to this Committee a single word of justification for or defence of this particular scheme. It is true that my right hon. Friend the late President of the Board of Trade suggested to the Committee a spirited defence of a scheme which was totally other than the scheme now before us. This scheme is a scheme which is being engineered into existence under cover of considerations of the highest patriotism, for the profit and convenience and commercial success of private individuals. My right hon. Friend the Member for Dewsbury emphasised, and we all indorse what he said, the great difficulties which handicapped the conditions of British trade and commerce prior to the War. We are all alive to that. We understood when Lord Faringdon's Committee was appointed that it was precisely to meet that deficiency that its inquiries were to be directed. My right hon. Friend suggested that there is great need to reinforce British commercial enterprise by adding to it the support in legitimate ways of the powers and prestige of the State, but during the last few months the present Government have sought to aid traders in two divergent ways. Up to to-day they have sought to aid existing traders and manufacturers by all kinds of arbitrary restrictions and regulations which prevent them from doing the trade which they are seeking to do. To-day they are pretending to help British trade in another way by setting up in competition with existing traders a new wealthy and powerful corporation with the prestige of the State, with the help of our Foreign Office trade emissaries to compete with the men whom it was their supreme business to aid.
I cannot conceive a more hopeless, destructive and suicidal way of seeking to further the interests of British commerce and trade than to proceed in these directions. My right hon. Friend spoke very strongly, I think not one whit too strongly, of the methods in which this matter has been dealt with. It is perfectly monstrous at a time like this, to have these great projects launched without any consultation with the House of Commons, which has taken no part whatever in the determination of a matter of this kind. It is outrageous that any responsible Government should conceive that they have the prerogative and position to engineer schemes of this kind without taking the House of Commons into their confidence. My right hon. Friend's speech was not a whit too strong, and he has done extra-ordinarily good service to British commerce and to the authority and proper influence of this House, by making the spirited protests he has made to-day. Personally, I am inclined to go with the hon. Member for Sheffield into the Division Lobby as the only way in which this House can protest against a thoroughly indefensible scheme. The President of the Board of Trade is probably already sufficiently familiar with Parliamentary ways and usages to know that we do not, by moving the reduction of the Vote, and by supporting it in the Division Lobby, betray any want of esteem for him personally, but that we are taking the only opportunity, which the method of procedure of the Government has left open to us, of registering our protest against this scheme, which the more it is examined by commercial men in the country the more overwhelmingly it is repudiated and condemned.
I hope I am the last man—or one of the last men, at any rate—who would desire to embarrass the Government by any words of mine. I have listened to almost the whole of the Debate that has taken place on this subject, and it is a matter in which I have taken very great interest. Indeed, a year ago, I raised this subject, if I was not the first Member to raise it, and I said that we should require a banking corporation, under high prestige, to act in competition against the immensely powerful German and American banks and corporations, if we were to hold our place in the terrific commercial and industrial struggle which will arise after the War. I had heard that something of the kind now proposed was to come into existence, and I rejoiced. I had waited and waited till at length a little bird began to whisper, and there are always little birds that seem to know what is going on; and the whisper was that something was coming—something very different, at any rate, from what I had ventured to expect. It is perfectly true what the late President of the Board of Trade (Mr. Runciman) said, that British joint stock banking companies and British private banks are not in a position to render the kind of assistance the British trader will require in all parts of the world after the War. These banking institutions have not been built on those lines. To begin with and to end with, these joint stock banks and private banks would not be trading with their own money, but with other people's money; and it must never be forgotten, in respect of current accounts, that a man might come to the bank counter and say, "I want my money." Suppose that money was locked up in enterprises all over theworld—money deposited on current account, the payment of which could be demanded—what would be the position of such banks? I agree, in view of these facts, with the late President of the Board of Trade, that there is an immense gap to be filled up, and that we have got to play a new game, and if we have to play a new game it will have to be played with new weapons, and not with our old banks. Therefore I hoped—I may have been wrong; I daresay I was—that there would be something in the nature of a State bank for our traders all over the world, that would not have deposits. I suppose the Government went into that matter and found that it was not practicable.
What have they given us? Have they given us a bank at all, or set up something which will have the position of a rival trading corporation? I find the words "banking business" mentioned once in the Charter of Incorporation. Section 2 says that the institutions shall be incorporated for a term of sixty years to carry on the business and trade of banking in any part of the world. That is the only mention of a banking business that I could find in the charter. Really it is almost an insult to the House of Commons, although I suppose it was not intended to come before the House of Commons — [HON. MEMBERS: "Hear, hear!"]—and if you examine it you find that first and last and all the time it is going to help the shareholders. If you go to the second sub-section, paragraph (F), on page 26, we see at any rate that it is a bank— that, especially where it is a Government charter with the imprimatur of the Government upon it. Surely we ought to have had a model form of charter, if it was to have the imprimatur of the Government! Every clause should have been a model clause for other companies, but, instead of that, you will find a kind of form that any bucket-shop business might have adopted. Another thing I do not like is the directors being able to trade with themselves and trade with each other. I submit that we have got to be extremely careful in this matter, both as to extra remuneration and as to the directors being able to trade between themselves. I do not like the granting of charters save in exceptional circumstances, and such a charter should be a strong thing that all the world should know and respect—not that I have a word to say against anybody mentioned in this charter, but there might be a temptation, or there might not be a temptation, to roll their own stone. It should be understood that I do not make any suggestion against these individual gentlemen. Unless you are going to have a State bank, with State officials, State money, and on a State basis, I think you had better leave the thing alone altogether. This proposal has, at any rate, been thoroughly threshed out and beaten to death to-day. Not a single good word has been said for it from beginning to end. I came here with an absolutely open mind, but I have come to the conclusion that this charter ought never to have been allowed to be brought forward. There are times when one's reason revolts, and my reason is very nearly revolting. I am a poor hand at Parliamentary procedure, but is it possible, even at this eleventh hour, for the Government to bring itself in line with this House in this matter? Of course, I know perfectly well that if we divide those who object to this charter are going to be beaten, and I frankly own that I do not want to go into the Lobby against the Government. Will they try to bring themselves into line with our feeling, because, if feelings were going to carry the day, if reason were going to carry the day, or if right were going to carry the day, this proposal would not be carried?
Can this charter be withdrawn? Is there power to withdraw it or power to amend it? I am not saying this in order to embarrass the Government; I want to help them. I do not want them to do the wrong thing, and this is the wrong thing. Do not let them imagine that by merely passing this charter they will get to the end of their difficulties. They are going to be at the beginning of them. There is a strong feeling outside. It may be said that certain people are being favoured who ought not to be favoured. Will the President of the Board of Trade get up whilst there is yet time and say that this charter will be withdrawn, and that he will introduce another? Is there any difficulty? Is there any reason why he should not do that? They have not begun business. I asked yesterday in a supplementary question whether they had begun business. Of course they have not. They are not going to begin business, I imagine, until after the War. We have only one business at present, and that is to win this War, and all the money—or rather all the paper—there may be in our pockets will be wanted, and more paper besides, before this War comes to an end. The Government apparently thinks that this corporation is going to jump into business to-morrow morning. It is not going to do anything of the kind. It will not jump into business until the War is over. I should have thought that there was time to withdraw the charter and to bring in another one founded upon right lines, founded not upon trading but upon financing the trader. Money helps everybody. We want a money corporation, but instead of that you have a corporation masquerading as a bank which is really going to do rival business with other traders in all parts of the country. It will not do. I hope the Government are not going to rush themselves into difficulties. There are a good many of us who think they are too busy in too many directions, but here, at any rate, there is time to draw back. The Government is not over the precipice yet. I only warn them, as a humble Back Bench Friend, who throughout his public life has had no idea of any sort or kind of rolling any log—I have tried to be a good party man, because it is no good being anything in this House unless you are a party man—that I will not support a thing of this kind in which I profoundly disbelieve.
I desire to join myself in a humble way with the description which my hon. Friend who has just spoken has given of himself, as a humble but very loyal supporter of the Government who believes that the business of the Government is to win the War. I am not desiring for a moment to suggest that whilst engaged upon that major duty the Government should altogether ignore all the other duties, of making preparations for peace. This is an attempt on the part of the Government to make preparations for peace, and what are the preparations? I have had intimate connection with the methods of Germany in promoting her own foreign trade. I know exactly how she has done it. Banks, more than one bank, have been established and extended under Government auspices, and they have had the opportunities of forming and promoting companies of all sorts to foster German trade. These companies have been assisted by every German Ambassador and every German Consul in every foreign port or town, and the result we have all seen, her peaceful penetration. This is an attempt to imitate that system of Germany, but I venture to say that it is a very blundering and very mistaken attempt. If the Government had carried out the recommendations made by the Committee, if they had established a bank with the same powers, and no more, as the German banks, who have no direct power for trading themselves, I believe they would have had the support of this House. As the matter now stands, having more or less definitely established an institution which is not a bank but which is a hybrid, bastard, combination of a banking and trading institution, I am sorry to say that even loyal and steady supporters of the Government like my hon. Friend opposite and myself feel constrained to appeal to them to reconsider their position. In twenty minutes from now this particular business must be transferred, I understand, to an entirely different phase, and the Government have an opportunity of considering their position. They have had an opportunity of realising the tone and temper of this Committee.
My hon. Friend opposite a moment ago said that if a Division were called he believed the Government would find themselves in a majority. I doubt if they might. Whether that be so or not, even supposing that a majority be obtained for the Government in a Division if it be called, is it wise, is it right, is it reasonable for the Government to persist in this proposal in face of a united Opposition from both sides from all kinds of Members in this House—a practically united House of Commons? I do not intend to enter into the question that was propounded by my hon. Friend opposite as to whether the Government have power to withdraw the charter. They have granted the charter and have placed themselves under certain contractural obligations, therefore, to those to whom they have granted the charter, but I venture to think that if my right hon. Friend the President of the Board of Trade (Sir A. Stanley) were to rise in his place and say that the Government would consider the position that would be enough to satisfy the Committee. It is not that we desire to defeat the Government even in this small matter of a Committee Division, which, of course, would not affect their general position. But we do desire the Government to reconsider their position in the light of the strong and unanswerable reasons which have been put forward by speaker after speaker this afternoon against this most mistaken and unexpected proposal. Therefore, reminding my hon. Friends on the Treasury Bench again of my own undoubted loyalty and steady support throughout, I do appeal to them to announce that having regard to the general feeling of the House of Commons shown by the Debate to-day the matter will be reconsidered, and the Debate on this Motion for reduction postponed until the Government has had time to propound something which will meet the necessities of the situation. There is plenty of time. Nothing can be done on this until the War is over, and that will give the Government time to reconsider its position, and that will place them once more in complete agreement with this Committee and every man in it.
8.0 P.M.
I very much regret that my right hon. Friend the Chancellor of the Exchequer and Leader of the House (Mr. Bonar Law) has been prevented by a cause which I think is known to the House from being present here this afternoon. It was at his request as he left that I came down to listen to this discussion and if I could to lend any assistance to my colleagues or the House. The Committee will understand, however, that I speak with great diffidence and with considerable difficulty about a subject which is quite novel to me and which I cannot pretend, amongst the many other duties I have had to perform of late, to have studied before this Debate arose. Let me say at once that I recognise the strength of the feeling expressed in so many quarters of the House. I entirely accept on behalf of the Government the assurance given by my hon. Friend who spoke last, which indeed was not needed, that those who have spoken in this matter have spoken on the merits of the particular case and without any personal animosity against my right hon. Friend the President of the Board of Trade (Sir A. Stanley), whose entry into the House is welcomed by us all, and without any desire to embarrass the Government, and least of all to defeat it. I think, if I may say so, that there is some misunderstanding and that there is certainly not as great a difference of purpose between us as the Debate would have led anyone to suppose. It may be that the charter is open to criticism as failing to make as clear as should be made plain the object with which this new institution is promoted, but I do not think there is any difference of opinion in this House—at any rate it has not been expressed this afternoon—as to the necessity of British trade after the War when there should be a new financial institution—[An HON. MEMBER: "A bank!"]—capable of giving, assistance on a scale, of a character, and over a period that none of our existing financial institutions is able to do. As I was dealing with that point somebody said, "on a bank." I prefer to say rather on a financial institution, because the Committee does not think, so far as I can judge from the speeches which have been made, that a bank conducted on the principle on which our joint stock banks are conducted, is implied. It is, in fact, because they cannot do the particular class of business which is necessary in the national interests should be done, that everyone desires to see a new institution created, and feels the necessity for it. I do not therefore use the word bank, but let me say in passing, that those who criticise the charter seem to have a very imperfect knowledge of the articles of association of most of our great banks. They seem to be under the impression that our banks are precluded by their articles of association by the fact that they are banks, from doing business which they habitually and daily do. As to the articles of association, I will undertake to say that the bank with which the right hon. Member for the City of London (Sir F. Banbury) is connected probably provides that bank with power to do as well as the rest. That is the general practice. Make your articles of association as wide as possible; you need not use your powers if you do not require them, but if the occasion arises let the power be there.
If my right hon. Friend will excuse me, I think he is going a little too far. I will bring down the articles.
I find there is no restriction which my hon. Friend's speech would have led any less informed person to suppose, and I am too wise to challenge my right hon. Friend on his own ground. I will accept any correction that ought to be made. The provision in the charter which has come most under criticism this afternoon is the provision (b) of Clause 2.
In Section 2 it reads in the fourth line:
"Businesses of trading and banking in any part of the world."
Is there any reason for an order by which trade is to be put prior to banking, seeing that we are discussing banking corporations?
I hope the hon. Member will not think me discourteous, but I am not competent to justify, line by line and word by word, a document which I had not read before I came into the House. I am endeavouring, as far as I can, to show the House the reasons for which these words which have been so much criticised were made, and I say these words are introduced as ancillary to the main purpose of the Corporation. I am advised that for the carrying on of the main purpose of the corporation some such words as these are required. The corporation finances a company or an individual. That being so, the individual may fail, and the corporation may itself be left to follow out its own interests and protect the money which it has already advanced. And it is with objects like that in view that this clause (b) has been introduced; but, as I say, the main purpose is expressed in the first paragraph—that the corporation should be formed with the object of assisting the development of British trade and industry and of procuring to British manufacturers orders in connection with new overseas undertakings and financing all contracts in connection therewith. If the corporation were to include the major portion and the main task which is allotted to them, and were to take that single section which is ancillary to the whole and subservient to the main purpose, then there would be very good reason for going to the Court and having it declared that they had failed to perform the objects for which they received the charter, and the charter might be withdrawn. That section, then, on which criticism is mainly directed, is not the main purpose of the charter, it is not the main purpose of the corporation, but something which has to be put on as an ancillary to that main purpose and which is necessary to its full carrying out. Now the charter has been granted. It is passed, and, therefore, they are under control.
Not of the House of Commons, and it is a great scandal.
Has it ever been before the House of Commons?
I do not think it has.
Has it ever been before the War Cabinet?
I cannot say. I am not a member of the War Cabinet, and I cannot say how far it was before them. I have tried to explain to the House the extent to which I think their apprehension is ill-founded. I have tried to explain to them, so far as my information goes, how it is subsidiary and a part of the section to which they have taken such great objection. But I am very conscious, as I said at the beginning, of the widespread character of the opposition in the House; but I cannot undertake that the charter shall be revised or cancelled. I can give no such undertaking, and the right hon. Gentleman (Sir F. Banbury) will know that it would be quite impossible for me to do so. But what I do say is that the feeling that has been expressed in the House of Commons this afternoon must necessarily be taken into account, and shall be taken into account by His Majesty's Government.
Will you put down the Vote again?
Yes, it will be put down again, and I shall report to the Cabinet, and to my right hon. Friend the Leader of the House, the feeling that has been expressed, and no doubt the President of the Board of Trade will again look into the matter in the light of the criticism which has been passed upon it. I can give no promise, and the Committee will not expect me to do so, as to alterations which I think may perhaps be the result of negotiation, but still, due consideration will be given by my right hon. Friend and the Government to the criticism which has been passed to-day, and it shall be put down on a later occasion, when the discussion can be resumed after full consideration.
I am not altogether satisfied with the information my right hon. Friend has given us. It may be said that this Vote will be put down again. I suppose it may be, and that we shall have the opportunity of discussing the subject quite afresh, for this reason—that the right hon. Gentleman said he could give no undertaking as to recision, alteration, or amendment. I am not sure of the exact wording, but what he has said does not alter the fact that the charter has already been granted.
I cannot alter that.
I agree; but the charter having been granted, are we going to understand from the right hon. Gentleman that it will not be taken up and altered? I understand that is the purport of the right hon. Gentleman's statement.
dissented.
I understand that the right hon. Gentleman does not agree. In that case I do not understand quite where the Committee is. The Committee is under the impression that there will be another opportunity to discuss this matter. I am sure I am right in interpreting the wishes of the Committee, that before the franchise, if I may use that word, is put into operation, it should be given an opportunity of discussing it. If that is not correct, what is the use of another opportunity being given for the discussion? If that is the real interpretation, I take it we ought to divide upon this question at this moment.
In the single moment that remains, may I ask my right hon. Friend if he will take steps to prevent the subscription of the capital being advertised before we have a further opportunity of dealing with the subject? The danger I see is that we shall not only find ourselves embarrassed by the charter having been issued, but the public may find themselves involved in subscriptions. Any attempt to deal with the charter after that has been done will create disturbance and be intolerable. May I suggest that the amendment of the charter be considered as quickly as possible, that the Vote be put down for as early a day as is possible, and that the prospectus be not issued in the meantime?
The Treasury has not authorised the issue of the capital, and will not do so.
It being a Quarter-past Eight of the clock, and leave having been given to move the Adjournment of the House under Standing Order No. 10, further proceeding was postponed without Question put.
Engineers' Strike
I beg to move, "That this House do now adjourn."
I desire to draw the attention of the House to the very serious industrial position which now exists and to the policy of the Ministry of Munitions in connection with this trouble. I think it is right that the country should be informed as to the position which has now really been reached, and I think we ought to be informed as to whether there is any prospect of settlement, or what prospect of settlement there is, and what steps are being taken. in that direction by the Ministry. I am not going to traverse the ground which I covered the other night in this House in regard to this most unfortunate dispute. Numbers of working men contend that it is due to the breaking of pledges, very distinct pledges, which were given to them on the part of the Government. One was in regard to a certain scheme of enlistment known as the trade card scheme, as to which the representatives of the Ministry of Munitions admit, I think, that there has been an entire change. They justify that on the ground that an undertaking given cannot be binding for all time, especially in the circumstances of the War. But if that pro- viso is going to apply to any promise given by the Government, it seems to me to strike at the very roots of all promises, because what importance can be attached to a promise if, a month or two later on, the Government can turn round and say, "Circumstances have changed, and therefore what we promised is no longer binding"? I have never discussed in this House the merits or demerits of that particular method of dealing with this question of the enlistment of skilled men. It is not a matter for me to decide whether it is the best way or not. I know that there is a good deal of difference of opinion upon that even among trade unionists. But the point I wish to bring up in one sentence is that an understanding was given that that understanding was departed from, and that that departure from that understanding has helped to bring about the present situation. That is all I wish to say in regard to the trade card scheme, and that you cannot break a promise without causing unrest and unsettlement. I put it no higher than that. One might also say if the scheme was a very bad one, as the Government now say it was, why should it have been adopted by the Government, and why should they have given their names to a very bad scheme?
I come to another point, and that is the question of the dilution of labour in regard to private work. Here again I do not profess to be able to discuss the merits of the case. There may be a case for the dilution of labour of private and commercial work. I am bound to say I have not heard myself a very convincing case, but I do not say that there is not a case that cannot be put with regard to that matter. But once more you are faced with very definite peldges given by the Ministry of Munitions or by those who represent the Government. I intend to read to the House what was actually said at meetings between the representatives of the Government and of the Amalgamated Society of Engineers on this question. A great many of the work-people begin to take this view as to the theory which the Government holds in regard to its own pledges. The theory is this: that you give a pledge in order to get something done, and after having got that something done, you then say that that something has so altered the circumstances that it is no longer possible for you to keep the pledge, and the pledge is broken. Here are the undertakings given repeatedly at conferences between the members of the Government and members of the Amalgamated Society of Engineers. The first conference from which I am going to quote was held on Thursday, 25th March, 1915. The representative of the Government was then the Chancellor of Exchequer, and is now Prime Minister. When he was discussing this question of getting the trade unions to give up their restrictions, their customs in regard to urgent war work, the question naturally arose as to what would be done in regard to ordinary private commercial work. That question was put as a clear issue between the representatives of the engineers and the Prime Minister. Mr. Hutchinson, who is a member of the Executive Council of the Amalgamated Society of Engineers, said: members to give up all their old customs, built up by a century's effort, on account of the war-work. At many meetings the members of the council of the engineers said: "We only give these up for war-work; we have definite assurances from the Minister of Munitions that it will not be extended to commercial work; therefore, all the customs that you have will not be swept away." Remember that both the council of the engineers and the members of the engineers' society agreed to the abolition of their trade union restrictions for war-work specifically on the understanding that it was not to apply to ordinary commercial work. Now that the Government bring in a Bill that is to extend it to ordinary commercial work, do they expect to avoid unrest? Do the Government expect to avoid trouble under those conditions? Why, the same thing happened in regard to the Irish Members. They were given pledges. When the hon. Member for Belfast was sent back to do the very disagreeable thing in Ireland of trying to win over the people to a particular scheme on the understanding that Ministers would stand by the Irish, when he got his men to agree to it he came back only to find that the pledge was "a scrap of paper," and was not to be regarded as binding. That is exactly the position in which you have placed the executive council of the Amalgamated Society of Engineers. I understand that the Ministry regards itself as the special friend of the executive council of the engineers' society, but I am not absolutely certain that the council takes exactly the same view.
It may take the same view in respect to the Ministry.
I am not, however, in a position to speak definitely as to that. But the effect of what I have been endeavouring to show is bound to be twofold: the effect is bound to be bad from the standpoint of any Government promise, to be destructive of the value of any Government promise; and, secondly, it is bound to be bad from the standpoint of the authority and power of the Executive Council of the Amalgamated Society of Engineers. They went to their members with definite assurances. On the strength of those assurances they got the members to give up what was a very big thing to give up, though some hon. Members of this House do not perhaps realise how big a thing it was. Having got that, these assurances are found to be worthless. This new Bill comes in to make them null and void. If that side of the case had been allowed to be put far more fully in the newspapers than it has been put it would not have been necessary to raise the matter in this House in the way that we have been obliged to raise it. This undertaking was entered into by the present Prime Minister—whom I am glad to see here on the Front Bench—and the executive of the engineers. Have you got their consent before you decide to break that understanding? That is quite a straight, fair issue, and I am quite sure that the Minister of Munitions would make a note of it. On the other hand, did you resolve to carry the Amended Munitions of War Bill over the heads of the engineers and against the wishes of the Amalgamated Society? Did you believe that it was possible, or easily possible, for you to do that, and is it now realised what the result really is? The result is that you have unrest in one shape or form from one end of the country to the other, that you have disaffection and discontent practically in every engineering district and centre. Sometimes it takes the form of a big stoppage of work, sometimes other forms which are equally serious. If I were to read to the House, as I could read, a list of the towns in this country in which these various manifestations of unrest have shown themselves it really would be rather a staggering piece of information to the Members of this House.
I understand from a letter which has been sent out to-day by the Minister of Munitions that the Ministry claim to be the special friend of the executive council of the engineers, and that they are determined to uphold the authority of the council. The point I wish to make is that you have been doing your very best to put the executive council of the engineers in an absolutely impossible position—that you have put them into a false and impossible position with their own members—and that that has been done very largely by the methods followed, and the policy adopted by the Ministry. In the letter that the Minister of Munitions sends to-day to some of the men who are now on strike references are made to the executive council. The letter, for example, says that the Ministry are willing to negotiate with those who are now holding a conference in London provided that the engineers executive are willing to consent to the conference which it is decided to convene. I wonder whether the Minister of Munitions really thinks that the executive are likely to thank him a great deal for that particular suggestion? It seems to me to mean this: that having created this difficulty, as the Ministry has created it, and not quite knowing how to deal with it they are going to put the onus of getting out of the difficulty off the shoulders of the Ministry on to the shoulders of the Executive Council of the Amalgamated Society of Engineers.
The Ministry are raising—so far as the engineers are concerned they have raised —a very great issue. It seems to me that you have created a good many problems for them already, and that the letter to-day to the men who are now on strike only adds to their difficulties and problems. At any rate I do not hesitate to say in view of the undertakings given, the attitude adopted by the Government is one which has entirely shattered working-class confidence in the Government, and has certainly shattered working-class confidence in any promises the Government may care to make. That is a most ugly and lamentable position to which we have been brought. I defy any Member who knows what the feeling in the society is to challenge or to dispute that. My own view, with regard to getting out of this difficulty, as everybody should certainly desire to do, is that you are now in a pit of your own creating. I will tell you what I mean by that. The Ministry of Munitions hope to abolish all strikes and all stoppages of work simply by declaring them to be illegal and by imposing very heavy penalties in the case of men who resort to a stoppage of work. You have not done anything of the kind. You have not by the Munitions Act or any coercive laws prevented stoppages of work taking place. You have made them illegal. They still take place. You have made them insurrectionary and revolutionary, but you have not stopped them
I will tell you what the Ministry has done. It has very largely destroyed the authority and the power of an executive council when any stoppage of work does take place, for the very obvious reason that the executive council cannot be a guiding, restraining, or moderating force, because the executive council, in case of any stoppage taking place, is supposed to be barred out by various laws, and especially by the Munitions Act, from taking any part or from having anything to say. Now if your laws could prevent stoppage of work there might be something to be said for them, but they do not. You have had any number of stoppages of work, and, simply because they are illegal, and simply because the workman is subject to a penalty of, I think, £5 a day for every day he remains out, you make them much more revolutionary in character than they would otherwise be, and that is all that has happened as a result of the Munitions of War Act in regard to the stoppage of work. How do you hope to be able to deal with and punish great masses of men who leave their work? Can you really punish 150,000 miners in South Wales if they leave their work? You can plaster the walls with Defence of the Realm Acts, but you cannot put all those men in gaol or shoot them all.
And they do not want to go there. They would behave, but for the likes of you!
I quite understand the hon. Member from whom that interjection comes. That is the kind of opinion which, in place of trying to analyse, or get at the root of the matter, talks in this big way. That kind of talk, instead of getting to grips with the whole problem, is a shirking of the whole problem, and is pure foolishness. You cannot arrest or imprison hundreds of thousands of men.
No; you have told them that!
I wish there might be some exceptions in that direction, I can assure you. You cannot deal with them. But what does happen is that, if you pass a law which you cannot enforce on a great body of men, you discredit your law. If you cannot enforce your law it is not wise to have a law, and therefore I do insist very strongly, as I have over and over again in this House, that the only way to carry the working people with you is to have their good will, trust, and confidence, and you will never get that by coercive laws or by oppressive legislation. Now, what does actually happen as a result of Government policy when a stoppage of work takes place? The executive of the union cannot really assert very much influence so far as the strike is concerned. If it endorses the strike in any way it becomes itself an illegal conspiracy, even if it only endorses it from the standpoint of moderation and restraint, and I believe that its funds would be liable to be confiscated, so that in case of industrial trouble you have by legislation in really large measure abrogated executive authority, and the consequences are what is seen by those who have eyes to see. Take the present trouble, and see what the position is. The men who have been meeting in London, the men who are on strike in the provinces, very largely say that their executive is unable to interfere in the strike, that it is legally debarred from interfering, and that, therefore, the men on strike must have their own leaders. I am not putting what the hon. Member for Stockport (Mr. Wardle) says. I am merely trying to put what the men themselves say, because I think it is important we should try to understand the various points of view. The first thing towards reaching any kind of settlement is to try to reach some kind of understanding.
I should certainly agree with that.
I am sure you would. But I was not trying to put your or my point of view, but the point of view of these men. They say they have been elected by the men now on strike, and therefore, so far as a settlement of the strike is concerned, it ought very largely to be in their hands, because their executive have been legally ruled out from guidance, from direction, and from control. What does the executive council say in regard to the matter? Very naturally the executive say that there must be in a trade union a responsible, elected authority. They say that in matters affecting all their members this elected body must have the determining voice, and ought to retain, as long as they remain there, the confidence of the members. I say quite frankly that it will be a very sorry day for trade unionism if it is to go through a long period of mere chaos and internal anarchy within the organisation. My complaint is that the policy you have been adopting for the last two years has been helping to create this very anarchy, which, I think, everybody who loves organised labour ought to deplore, because there will be a heavy price to be paid for it. I believe that authority could easily establish itself on the foundation of freedom, but that it cannot establish itself on the basis of suppression and coercion. To these two points of view, put as I have put them, side by side—the executive view and the strikers' view—what is the reply of the Ministry? They say that they really cannot interfere in a family quarrel of this kind, that they desire to uphold the head of the house, and they really ask the executive and the strikers to adjust their quarrels, if they have quarrels, and then come to them. In the meantime, whilst all that is being done, the strike goes on day after day and week after week. Well, now, has a deadlock of this kind really been reached? Has the Ministry of Munitions any proposals to make to-night with a view to getting us one step nearer a settlement? I will tell the right hon. Gentleman that delays in this matter are exceedingly dangerous, because strikes, as everybody knows, are apt to be rather infectious, and there is now growing in Lancashire trouble with regard to the weaving trade, where it is said 200,000 weavers employed in 800 cotton mills have handed in strike notices to take effect on 26th May. There is no doubt at all about the very widespread and the very general unrest, and it seems to me that, unless we do wish the fire to burn very brightly indeed, steps ought to be taken at the earliest possible moment to reach some settlement.
May I be allowed to inform my hon. Friend, in justice to the weavers, that they decided to hand in their notices before the engineers' strike?
If I conveyed the impression that they had handed in their notices as a result of the engineers' strike, I conveyed an impression I did not intend to convey. I merely said in a general way that when strikes begin they are apt to be infectious, and that in Lancashire now there is trouble brewing on very big lines. What is the character of this unrest among the men? There is one thing I am very glad to see in many of the newspapers. I am very glad to see it in the columns of the "Times" from day to day, and in great journals like the "Manchester Guardian," and in newspapers like the "Daily Mail," an attempt really to understand what is behind this. That seems to me to be the first thing. Merely to denounce and condemn does not get you very far. You have to try to understand. Here is an interview in the "Daily Mail" the other day with a Coventry manufacturer, an employer of labour, who occupies a very high position in the trade of the town, and there is a great deal of weight in his words. Speaking of the men and this growing deep rooted unrest, he is trying to explain and to find out what it really means. He says:
I am afraid that the hon. Member is going a very great deal further than the notice on which he 9.0 P.M. obtained leave to move the Adjournment of the House. May I read it to him:
"To call attention to a matter of urgent public importance, namely, the failure of the Ministry of Munitions to negotiate in the present dispute in the engineering trades and the consequence of such failure on the prolongation of the strike."
You have been very patient with me, but it is rather of importance that we should try as far as possible to traverse this matter and reach certain conclusions. In any case, I had said practically all I wanted to say, and therefore I am quite willing to come inside the more strict and narrow limits, but it would have been difficult to have done so without going into the wider question which is involved in the narrower formula upon the Notice Paper. Sacrifices working people will make and are prepared to make, but they do not wish any sacrifice to take the form of bondage to any private interest or private employer or the form of industrial slavery to any private employer. There really is a chance now for the Ministry to reach some kind of settlement in regard to this matter, to do the big thing, to have faith and courage in these men, and to believe that freedom will pay you better than coercion. It does not mean that with freedom you may not have difficulties, but have you had no difficulties with the Munitions Act and with all this increased bondage and oppression? There will be plenty of difficulties in Russia, but the advantages in Russia with its great measure of liberty will enormously outweigh any corresponding disadvantage. I would recommend the Government to trust the working people far more than they do to-day and to begin to rear up again that fabric of working-class liberties which has been so largely destroyed during the last two years.
I desire formally to second the Motion that has been moved with such clearness by my hon. Friend the Member for the Attercliffe Division.
I rise to speak on this Motion from rather a different point of view than that of the mover, but I feel, and feel very strongly, that the experience which I had last week was somewhat unique and that what I learned during that. experience should be laid before the House of Commons. I was invited by the strike committee of the working men of my own Constituency to go up and interview them, and discuss with them their difficulties at the present time. I had had two or three letters from them which I had answered to the best of my ability. I went up last Friday night and met a committee of some sixty-eight men, representing over 3,000 men in that immediate corner of my very large Constituency who were out on strike. If I may say so, I expected to find a revolutionary committee of violent, desperate men, who were going to tell me that they were out for revolution, and that they were out for everything of which I should disapprove. Far from that being the case, I found a most well-educated and able body of men gathered together in the room. I regret to say that when I stood for the Altrincham Division some few years ago most of them voted against me. Perhaps at the next General Election they will change their minds. I only give that to the House as an excuse or reason why a man in my position should speak on this Motion for the Adjournment.
I listened last week to the address of the hon. Member for Attercliffe (Mr. Anderson), and to the reply made by the Parliamentary Secretary to the Ministry of Munitions. I listened with great interest to both speeches, and agreed with a great deal that was said by both hon. Gentlemen. There was one part of the speech by the hon. Member for Attercliffe with which I disagreed most profoundly; that was where he emphasised—unduly, in my opinion—the fact that in one case a woman worker in a munition factory had been prosecuted for being absent from the works. He laboured that, and made a great point of it in this House. I feel, I am sure every Member of this House feels, and I am sure that the hon. Member for Attercliffe feels that that case was an unfortunate mistake, and that that was all it was. It is unreasonable to incite men who are already on edge by quoting and rubbing in such cases. There I disagreed with the hon. Member for Attercliffe most deeply. I do not want any Member of the House or anyone in the country to think that I would in any way support men going out on strike at the present time. I am opposed to any man striking or stopping work, especially war work, which is so essential to our country at the present moment. But there are difficulties which seem to some of these working men great mountains, while they seem to us to be mere trifles. I honestly felt that those men whom I met in my Constituency were patriotic, sound Englishmen, just as keen on winning this War as I am, just as keen to see the duty of the production of munitions carried out as I am. Yet these men were disgruntled, dissatisfied, and out on strike. I do not altogether agree with the hon. Member for Attercliffe as to the reasons for which these men are on strike. They did not appear to me to be fighting for themselves. They were not striking because they wanted something. Most of the difficulties which they brought before me were difficulties in connection with the women who were working in the factories alongside them, and difficulties in connection with the untrained and unskilled men who had been brought in as reinforcements into the munition factories. They were not fighting for extra pay for themselves; they were fighting for a principle, and the principle, as I understood it, was largely this: that they felt that they had a grievance, a real, genuine, legal grievance. They felt in one case that the masters, or the heads of the firms they were working for, had done something which was illegal. They were not bigoted about it. As one of the spokesmen said to me— Honestly I do not think that the trade-card system to which the hon. Member for Attercliffe referred, or the new Bill which is before the House for the dilution of labour, although they are enormous questions and abound with difficulties, are really the root causes of the trouble and the labour unrest at this moment. In my opinion the cause of the trouble was largely that stated by the Parliamentary Secretary—namely, overstrain on the part of the workers themselves, and the overstrain, as he described it, of their psychological conditions. May I say to the Parliamentary Secretary and to the Minister of Munitions that I know these men are overstrained, but possibly the right hon. Gentleman does not realise that he, too, is overstrained, and that the psychological condition of the Minister of Munitions may have something to do with this trouble. I know that the right hon. Gentleman is working all hours of the day and night. I am told, on pretty good authority, that he does not always take a very good dinner in the evening, but puts up with a glass of milk and an apple or something of that sort. If that is true, the right hon. Gentleman also is suffering from psychological conditions. It is really that which is at the bottom of all this trouble. The general tendency to be irritated by small things and the overworked conditions both of the Ministry of Munitions and of the men themselves in the factories are really causing these difficulties to-day.
I want to ask the Minister of Munitions one direct question: A very large and influential deputation waited upon him, with the Secretary of State for War and other representatives of the Government, some time ago in a Committee Room in this House. I believe that that deputation was representative of all employers under the Ministry of Munitions. That deputation put forward, as I understood it, a request that the Ministry of Munitions, when they were going to take any action which affected the production of munitions in this country, should, before taking that action, consult a small committee to be formed out of this large body of employers. I want to ask the Minister of Munitions whether, before he took the recent actions he has taken, he called together this expert committee, which is at his disposal. Has he asked these employers, who, after all, are not politicians, but are engineers like myself, who have served their time to become engineers and who have gone through the shops and understand the conditions under which the men have been working, as I do because I have done it myself—has he asked them for their advice? Surely I am justified in asking the right hon. Gentleman if he has consulted these experts before taking the action which the Ministry of Munitions and the Government have recently taken! I hope he will be able to say that he has, but if he has not consulted that Committee, if he has not taken advantage of the offers which the employers placed before him, I think, indeed, the hon. Member (Mr. Anderson) is right in moving this Motion.
I am very reluctant to interfere, but I am rather afraid the whole time may expire without our reaching the Motion. Ought the Ministry of Munitions to have negotiations, and with whom? That is the question.
I was just submitting that in his negotiations he should surely have taken the employers into consultation. That was my immediate point when you rose. As I understand the Motion, if the House is not satisfied with the negotiations he has made, surely I was right in contending that he should have called together this committee of employers and taken their advice before negotiating or not negotiating with the men at present on strike! The Motion, as I understand it, is a general Motion to enable the House to impress upon the Minister of Munitions certain points of view, personal possibly, local possibly, representing certain parties possibly, but points of view as to what is the duty of the Minister of Munitions at present in order to end this strike. That is the object of this Motion. It is not to encourage the strike, but to find some means of settling it and of getting it ended, as I am glad to say it is in my Division. The hon. Gentleman (Mr. Kellaway) laid great stress on the point that the men were overstrained, with which I agree. There is another thing to remember. These men who are on strike are not only working very hard, but they have very little of their ordinary relaxation. Horseracing is cut off. A great many of them take a little relaxation occasionally by having a few shillings on a winner or a loser. There has not been much cricket this summer to watch yet, and last winter there was not much football. It wants appreciating by the Government that these men are working under these conditions. I have been working pretty hard lately, but occasionally I get a rubber at bridge or something of that sort.
I would point out to the hon. and gallant Gentleman that this is a definite matter of urgent public importance arising at the moment. These general considerations would be all right on a Vote of Supply, but we are not in Supply. We are dealing with a particular, definite, urgent matter, a question that is instant at this moment.
I am very sorry if I have tried to put my case badly, but I feel that it is just the missing of these small points which is causing this trouble to-day. That is the reason I have risen to speak at all. I do not think the right hon. Gentleman (Dr. Addison) is desirous of encouraging this strike. I think he is misunderstanding the position of the men and I am trying from my point of view to put it before him.
I will explain to the hon. and gallant Gentleman that the only point we are discussing to-night is what the Ministry ought to do that it has not done, if that is the view of the House, in the immediate emergency of the moment. These other things we can discuss when we have more time.
In my opinion the Minister of Munitions has made a great mistake in refusing to meet the strikers' representatives. He has refused, as I understand it, because they are not the official representatives of their trade union. If they were the direct representatives of their trade union they would be liable under the law of this land to prosecution. Therefore the direct representatives of the trade union cannot appear in this matter. The right hon. Gentleman refuses to negotiate with these men, although he knows they cannot get their ordinary representatives to appear before him representing them as strikers, as if they did they would be liable to the law of this land. The legal liability of the trade union officials has undoubtedly caused them, very much overworked and overstrained, just as others are, not to attend to the smaller complaints of the men who are on strike to-day. I had one instance of a letter written to a trade union official asking for his attention to a certain complaint in a certain shop. That letter was written in the early days of March last. A copy of it was sent to the Minister of Munitions and an official acknowledgment was received from both quarters, but nothing more has been received up to to-day. These men feel that they should be allowed to negotiate or to meet through their representatives some representative of the Government. They know that the Minister of Munitions is a very busy man, but, after all, some of these representatives have been in London this week and all they asked the Minister to do was either to come himself or send his excellent representative, the hon. Gentleman (Mr. Kellaway), to meet them and discuss these difficulties. Those negotiations were refused. The Government, instead of meeting them, has issued threats. It has told them that the leaders of the strike are subject to penal servitude. They know that as well as the Government. What is the good of posting it all over the country? They know the Munitions of War Act just as well as we do. Threatening them with penal servitude, to my mind, is a most serious mistake in this critical time. If the Minister of Munitions had been well advised he would have issued a notice that if he could put his hand on the man or men who had announced publicly and spread around the munition works that this dilution of labour was to go on for seven years after the War, penal servitude would have been much too good for them, for they ought to be shot. It is the men who have spread these false reports and tried to influence these unfortunate, overstrained workers in the factories who ought to be seriously punished.
I am sure these threats are a mistake. I hope the right hon. Gentleman will seriously consider whether he cannot in some way make it easier for these men to lay their case before someone in authority. When I met the strikers in my own Division I found they had quite a good case and a very little explanation of the misunderstandings which they had in their mind made them go back to work at once, and I believe it would be the same throughout the country. But it is the irritation of being refused. After all to a great many of these men a letter written by them to the Minister of Munitions asking that they may negotiate with the Ministry—I say that to keep strictly in order—is a mountain. It is a great event in their lives. They think of it day and night for weeks and wonder what the reply will be. The Minister of Munitions receives thousands of them every morning and answers them with a printed notice that their letter has been received, and so on. That lack of the human element which is wanting sometimes in Government Departments is what is causing this strike. If only we could get more human dealing with these men and negotiations direct with the man who is dissatisfied and disgruntled, I do not believe these strikes would continue for a moment. I am convinced that during this War, and more especially after the War, it is the close negotiation between men and masters, the good feeling, the milk of human kindness between men and masters, and more especially now between the men and the Ministry of Munitions, which is wanted to make a success for the production of munitions now and for the promotion of output in factories hereafter. I implore the Minister of Munitions not to continue his policy of threats against these men to-day, but to meet them in fair negotiation. I am sure he will find them good, patriotic men, who have got a grievance, a grievance which is in all probability nine times out of ten due to misunderstanding, and that when this is explained they will return to work and work as well as they have done in the past.
Mr. WARDLE rose—
The Minister of Munitions!
I wish to intervene in this Debate—
On a point of Order. Is this Debate to be closed without a reply from the Minister of Munitions?
That is not a point of Order.
I do not want to take up the time of the House to such an extent as to exclude the Minister of Munitions from replying, and I think that if my hon. Friend will have a little patience the Minister will reply. I cannot answer for the right hon. Gentleman, but I am sure that he will do the House the courtesy of giving a reply. I rise to add a few words in regard to the real point which is now before the House. I have a great deal of sympathy with a great part of the speech delivered by the hon. Member for Attercliffe (Mr. Anderson) and I do hope there will be no attempt, either on one side or the other, to throw stones in regard to the question of the Munitions Acts or of the present strike. But I looked in vain as the hon. Member proceeded with his. speech for any practical suggestion for ending this strike, which is dislocating the munitions of the country, and which we hope by some means or another can be settled as the result of this Debate. This Debate, if it can clear away misconceptions, and if it can get us to the real point at which a settlement can be brought about will have done an enormous amount of good, both to the workpeople concerned and the country as a whole. I do not think the hon. Member for Attercliffe really touched the situation which is before the House and the country at the present time. There are difficulties arising out of the administration of the Munitions Acts. There have been mistakes in administration in the past, but when the hon. Member put his question to-day, the question undoubtedly was: Who is the Minister of Munitions to negotiate with and how is he to proceed in order to bring this dispute to a conclusion? The matter is difficult, and I think it has been made a little more difficult by the Minister of Munitions himself. If what he said at the outset of his statement to-day is correct, and that he intends to recognise only the executive and duly elected representatives of trade unions as those with whom he can negotiate to bring any dispute or strike to an end, he has to some extent departed from that in his letter to-day, and has made the position of the Executive Committee still more difficult. If the Executive is to be invited to meet him along with a large number of shop stewards, who will far outweigh the number of the Executive Committee, and who have no power to settle, so far as one can gather, and certainly no power to sign any agreement which would bind the union or the members of the union, he has to some extent rendered the position very much more difficult.
Either the Executive Committee of the union ought to be and must be the authority with whom the Minister should negotiate at this present stage with regard to a settlement of this dispute, or there must be some means found of getting at the larger body of men, either through the shop stewards or through some other body. The right hon. Gentleman has attempted to meet the difficulty with every good intention and with a desire to smooth over a very difficult position by bringing in the shop stewards along with the Executive Committee, but while it was a good intention, I think it was a wrong method to bring an end to the present dispute. I differ entirely from my hon. Friend (Major Hamilton) with regard to the question of the power of the Executive Committee to negotiate for a settlement of this kind. No penalties can attach to an Executive Committee to negotiate for a settlement of this kind. No penalties can attach to an Executive Committee which seeks to bring to an end a dispute which has already begun, and I cannot understand why the statement should have been made. They have not initiated the strike, and if they act as mediators or in any way support their own authority and the authority of the State in trying to bring about a settlement, nobody would ever dream that under any circumstances could they be brought within the Defence of the Realm Act or prosecuted under such circumstances.
I want to say a few words as to what seems to me to be the origin of this dispute. I agree with the hon. Member for Attercliffe, that if we are to bring the dispute to an end, we have got to understand what it is about. While I will not go so far as to say there is no irritation arising out of the working of the previous Munitions Act, I do not think that that has any real bearing upon the origin and continuance of the present dispute, except in so far as the present proposals for dilution arise out of the previous Acts. There are two matters underlying this: first of all, there is the question of the dilution of labour in private works, and there is the withdrawal of the trade card scheme, coupled with the issue of M.M. 130. With regard to the question of the dilution of labour in private works, the pledges which were given to the Executive of the Amalgamated Society of Engineers by the right hon. Gentleman's predecessor has been read to the House. I understand that negotiations did proceed with various unions, including the Executive Committee of the Amalgamated Society of Engineers before the introduction of the Bill. The other unions agreed, but the Amalgamated Society of Engineers did not agree. I do not know whether they expressed at the time any real active opposition, but they did not agree, and the right hon. Gentleman introduced his Bill without their agree- ment. Now we have the unfortunate spectacle of seeing throughout the country a strike, which is apparently the result of want of agreement between the engineers and the Ministry. The right hon. Gentleman himself, I believe, acknowledges now that some amendment is necessary in the Bill which has already been passed through the Committee stage, and owing to the manner in which it was taken in Committee a large number of Amendments which it was desired to discuss have not been discussed at all. It seems to me that the best plan for dealing with the Bill would be to have it recommitted, so that negotiations might begin to proceed again with the object of getting Clauses in the Bill which would be agreeable to all parties, if agreement could be secured, on the question of munitions. And, with regard to Amendments which are absolutely necessary on many other points in the Munitions Act, it would be better far to have a clean start and get a proper Munitions Act, while we are about it, than to attempt to rush this through in existing circumstances. I know that it has been delayed and that there is some urgency, but if it has waited from December, when negotiations began, until now, and if this trouble will keep it on ever so much longer, as it threatens to do, I think that in the long run it would be quicker and better, both from the point of view of the Ministry and that of carrying on the War, if the right hon. Gentleman would announce to-night that he will agree to the recommittal of the Bill so that we may have it issued in a much better shape than that in which it stands at the present moment.
A word or two now with regard to the card system, and what is largely the origin of the dispute not in private yards, but in munitions factories. I am certain, from what I can gather, that the withdrawal of the trade card scheme itself is not so much a grievance, and even the idea of taking out the unskilled men is not quite so much a grievance, as the fact that you have inside the same works other men, young men of military age, who have been brought in from outside, who have been taught dilution, and are being kept there while you threaten to take out the skilled men, and while at the same time the ministry is seeking for dilution in private works. The two things do not seem to the men to tally. There is undoubtedly in areas with which I am acquainted a feeling of this kind, that it is not fair that men who have been taught dilution, who are single, and some of whom are sons of tradesmen and others in the district, should be allowed to remain and escape military service, while you call upon the skilled men to go into military service when they are being asked for for other purposes as well. That is really having an extraordinary influence on the minds of those who are out at the present time. I believe that if this trade card scheme had been adopted when first proposed, and adopted under different conditions from those in which it was attempted to be applied in the long run, it would have proved both useful and a good method of meeting the difficulty with which we have been faced, but it cannot be now, and it must go because it has aroused immense opposition with regard to other unions.
It has become an impossible system in existing conditions, and while MM 130 may be all right, if it is properly worked it is issued without any signature. There is no apparent authority of the Government indicated on it. It has not been issued to the tribunal, and you have this extraordinary position, that the tribunals can give a man exemption under the old certified occupation list in contradistinction to the Regulation MM 130, and therefore you have got two contradictory systems which can be used in the same case. The House of Commons and the country are anxious to see this unpopular dispute settled. I am positive that the bulk of the men and that the executive council of Engineers are loyal to their country and desirous of throwing the whole weight of their energy into the work of serving their country. But it cannot be done quite in the way which the right hon. Gentleman has suggested to-day. You cannot have two authorities in the same union. Either the executive committee must be the authority, and some means must be found of bringing the men and the union into closer touch with the Ministry than has hitherto been found possible, or we shall have this result, that if the general authority of trade union executives becomes weaker we shall get anarchy instead of unity and of ordered government within the trade unions. Trade unions have become an integral part of our national life. They have rendered immense services to the nation during this crisis. Let us seek to build them up, as far as this House can help to build them up on sound reasonable lines with ordered government. Do not let the Ministry, at any rate, be any party to weakening in any way the authority of any executive.
I must express my acknowledgment to the hon. Member for the Attercliffe Division, and to those who supported him in obtaining the Adjournment Motion, for an opportunity of making a statement on this question. I welcome that opportunity. In so far as I understand the terms of the hon. Member's Motion, which, as you, Sir, have more than once reminded the House, have been somewhat lost sight of, they refer to the failure of the Ministry of Munitions to negotiating the present dispute in the engineering trade, and the consequence of such failure, and so forth. We, of course, do not announce in the daily papers negotiations which are in progress with the Ministry. They are in almost every case, until they reach a conclusion at all events, more or less of a private nature. But I will tell the House something of the negotiations which have been going on, and the House can judge for themselves whether the Ministry of Munitions has shown any indisposition to negotiate. I agree with the hon. Member that the two chief topics which are foremost in the speeches are those concerned with what is known as the schedule and the Munitions of War Amendment Bill now before the House. I should like to say a word on the negotiations with regard to those two points. The hon. Member for Stockport put it very well when he deplored the prospect of men going into the Army and workmen being taken out of the munition factories. Nobody agrees with him more heartily than the Ministry of Munitions, who have done more to keep the men in the munition shops than anybody, and my right hon. Friend opposite knows full well, and will support me in this, that we have made great and continuous efforts to keep skilled men in their munitions occupations. In fact, we have brought 40,000 of them back from the Colours; so that nobody need be under the misapprehension that the Ministry of Munitions—notwithstanding what has been attributed to me by an hon. Member as to my psychological irritability and our having taken leave of our senses—is not extremely anxious to keep skilled men in the munition factories. We have got a programme before us of enormous magnitude; we have got a programme for marine building two and a half times as big as what it is to-day. Do you think we do not want skilled men? We are moving heaven and earth to keep the skilled men. As to the question of the trade card case, it was done to protect the skilled men whom we wanted to keep.
Let me give a history of the negotiations connected with the schedule. We discussed the constitution of the schedule for the trade card scheme at a meeting of the trade unions, which were party to the trade card agreement, and we also discussed it with unions who were not parties to the trade card agreement. We called together the representatives of trade union organisations, and I may remind the House that the attitude of those who were in the trade card agreement was not identical with the attitude of those who were not in it. It was a case of serious divergence of view, and conflict was springing up. We had to substitute, in the interests of peace as well as in the interests of protecting the skilled men, another system. The Amalgamated Society of Engineers did not, however, take the view of some of their trade union colleagues, and during the week from 30th April we were anxious to come to an arrangement. During that week we had prolonged negotiations with the delegates whom the Committee wished us to meet, and I may say here that the Ministry of Munitions is anxious and always has been anxious to meet the executive of the union, and if the Executive Council wanted to bring a delegate or anybody else we said, "That is your affair; bring him if you like." On this particular occasion—Wednesday, 2nd May, to Saturday, 5th May—we spent, I think, in the aggregate two and a half whole days out of the four in negotiating on this schedule with the Amalgamated Society of Engineers, and we completed the negotiations at twenty minutes past nine on Saturday night. The whole of Saturday and the whole of Thursday were practically spent up to half-past ten at night on the negotiations, and a considerable portion of the other days were also spent on these negotiations. We finished the negotiations with the delegates of the Amalgamated Society of Engineers about twenty minutes past nine or thereabouts, and we had scarcely had a decent meal all day. The point I am now on is that there was not a failure to negotiate, and we did, in fact, arrive at an understanding with the delegates at that time, with the result that the delegates, at our suggestion and in our anxiety to keep the men at work, because they were out in some places at that time, sent this telegram—
To what delegates is the right hon. Gentleman referring?
The delegates of the Amalgamated Society of Engineers.
Not the Executive?
The whole of these negotiations were conducted with the delegates and with the concurrence of the Executive Council. We met the Executive and the delegates wished to meet us. As long as it was done through the proper channels we did not mind doing it. The telegram was sent by the delegates after four days' negotiations that were fully recognised on both sides. So much for our failure to negotiate on the Schedule. These things were not published in the newspapers, and I am glad to have the opportunity of informing the House. I wonder if the hon. Member for Attercliffe knew about it. If he did he did not mention it.
Will the right hon. Gentleman tell us whether this conference took place before he was committed to the new scheme and had announced the change, or after he had committed himself to the new scheme? Was it before the conference or after?
The conference took place because we had called the unions together some time before, in regard to the Schedule for the trade card scheme. Negotiations went on, because to some unions the Schedule was not acceptable, and negotiations were entered upon in order to make the Schedule acceptable. Before I pass away from the Schedule, I should like to say a word or two with regard to one or two important points mentioned by the hon. Member for Stockport. He says that the skilled man naturally is averse to seeing the single dilutee, if I may so describe them, remaining whilst he is taken. I entirely agree. This decision was placed before us, and the result was that we agreed with the delegates of the Amalgamated Society of Engineers. But what applies to them applies to every other union in the Schedule, because we made it clear at the very start, and I emphasised it over and over again, that I would not be a party to any agreement which would not be applicable to every trades union. There was no suggestion that it should not be, none at all, for it was most loyally observed. One of the instructions which we have issued to those who are to administer the Schedule is that before any of the skilled men—and I may say that the number of the so-called skilled men who can be taken under the Schedule only applies to a small class under the age of twenty-three or thereabouts. All these are grades of men whom we were compelled to think we could dispense with—in those occupations mentioned in the Schedule are removed, all the dilutees fit for military service in that area shall be called upon first.
That is not well known.
I may say that we have placarded munition works and other places with these conditions all over the country, and I will placard them still more after what the hon. Member says. I knew it was not well known, and that was why we placarded the works everywhere with these instructions to those who are to administer the Schedule. It means that the dilutees fit for general military service will be called upon first, and I think it is very important that that should be understood. It is a most important point, and I fully sympathise with the point of view. Now I come to the suggestion that we have not negotiated with respect to dilution. Let us see how that stands. The hon. Member for Attercliffe said that the present Prime Minister had made promises to the Amalgamated Society of Engineers and others with respect to the non-extension of dilution to commercial work. That is perfectly correct. In view of those promises which have been made we called the unions together during the autumn of last year, and we told them the situation had now become such that we must ask them to release us from that engagement. It was done quite frankly and 10.0 P.M. openly. There was nothing tricky about it. We had long conferences with the unions, and this is a copy of the agreement which was signed by twenty-eight craft unions, not by the Amalgamated Society of Engineers I quite agree, in November of last year I think it was. The first paragraph is this: agreement dilution was being practised, the people engaged in those industries would have had no statutory protection whatever, nor could we have extended to them the wages regulations and other protections which we are able to extend to those working in controlled establishments. I quite agree that we ought to extend the provisions of this Bill with the most scrupulous regard to extending them to the very minimum.
I entirely agree with that, but I am afraid I cannot, whilst willing to go almost to any length to get a settlement, undertake to withdraw the Bill. I cannot undertake to do it, and I will tell the House quite frankly why we cannot. It is not because we want dilution on private work for the fun of the thing. There is no one to whom it gives more worry so long as it lasts than the Ministry of Munitions. It is a most odious and unpopular thing to have to do. Anyhow the difficulties which we have had in connection with the dilution of war work, and I am not blaming anybody, are natural and inevitable under the circumstances. They are not imaginable by anyone who does not live in the Ministry day by day. I can assure the House it was no will of ours to extend the dilution; it was only adding to our daily troubles. But why did we do it? The reason is very simple. The reason is that with the greatly augmented aeroplane camps, together with the new Government shipbuilding programme, it was quite evident when we began to map out this programme that the only place that we could get the best skilled men was from commercial and private work. There was no other, and the union undertook to get their members to enrol as National Service Volunteers and they helped us enormously. But when you get a very material shortage in your ships and the demands of the Armies in the field as they are, upon which I shall have something to say in a few minutes, you must either get men from private or commercial work or you must fail to supply the Army with what they want. It must be one of the two. There is no middle course whatever. You cannot make the things without the skilled men, and supposing you take skilled men from the private and commercial work, unless you make some other arrangement, the shipyards and the private and commercial work die. The rest of its employés, or the bulk of them, would be without employment, and the goodwill of the owner is lost. At the end of the War there will not be a place there either for the dilutee or the dilutor. You must have the skilled men for the fabrics of the munitions of war and the building of ships, and you must, by some other expedient, keep private trade alive. That is the necessity of the situation, and it is no good saying to us "We object to this." I say, "Very well, show me another way of giving the British Army 60-pounder guns," and we are entitled to ask that question, and until we get a reply to it I cannot withdraw the Bill or abandon a the principle of it. I state quite frankly and bluntly to the House that that is the issue with which we are faced. Now the hon. Member for Stockport said that he thought something might be done in one direction. Let me just tell the House something more on that. I am still keeping as near as I can to the terms of the charge against us, which is that we failed to negotiate. It was not our fault that the hon. Member for Attercliffe was not in his place on the Committee stage of the Bill and failed to move his Amendment. It was not the fault of my hon. Friend in charge of the Bill that the hon. Member was not here. The matter was so insistent, and why was he not here to move the Amendment; and if he could not be here to move it, why could he not have taken the trouble to get somebody else to do so?
Not the remotest indication was given to Members of the House that the Amendment was to have come on on the Monday. I had travelled all through to Glasgow on Saturday, and would have travelled back if I had had the remotest idea that it was coming on.
The hon. Member knows well enough that if I had known of that I should not have said what I did. The last thing I want to do is to accuse anyone of breach of faith, but so far as I know it was certainly on the Whip that I received, and I take it that it was on the Whip other Members received.
When did you receive it?
I think I received it on the Saturday morning. I think it was sent out on the Friday's Whip. I feel sure it was, and I expect the hon. Member for Attercliffe got a similar Whip.
No!
If the hon Member for Attercliffe puts himself in the position of not receiving the ordinary published notice and does without the Whip, he cannot complain; but I do not want to make a point of that. So far as I know, I can assure the House I would have been no party to try to get the Bill on without hon. Members knowing about it. It was on the Whip in the ordinary way, and I did not myself know that it was coming on on the Monday until I received the Whip. There was no concealment about it. It was well known to everyone who has the ordinary Whips. Anyhow, whatever may be the situation with regard to the receipt or dispatch of Whips, the Minister of Munitions cannot be blamed because a large number of Members who have Motions on the Order Paper were not in attendance to move them. We recognise however, that owing to failure to receive Whips, or anything else you like, a number of Amendments were on the Order Paper, some of which were very important, and with one or two of which I have a good deal of sympathy, have not been moved. We invited the trades union, being anxious not to fail, to meet us, and they met us on Thursday, 10th May, and we had a long conference with the members of the Shipbuilding and Engineering Union, and as a result of that conference they sent out two resolutions. The House will bear in mind that negotiations were going on till Thursday, 10th May, a long time after the Munitions of War Bill came on. It was after the Committee stage, and they sent out these two resolutions:
"That this meeting of the representatives of the societies connected with the engineering and shipbuilding industry hereby reaffirm their conviction that in war-time all trade disputes should be dealt with in a constitutional manner, and deeply deplore the existing unauthorised strike."
That was resolution No. 1. Resolution No. 2 was as follows:
"That this meeting hereby resolves to appoint a small committee to consider the Munitions of War Amendment Bill now before Parliament, and to confer with the Minister of Munitions on the terms of the Bill, and any grievance which might be removed by introducing further amendments."
They appointed a committee of eleven, which I think has already done good work. I have not been in touch with all that has been going on, but I know of it, and I know that, at all events, we have not failed to negotiate. The Amalgamated Society of Engineers did not see their way as I have already explained, to take part in negotiations with respect to the amendment of the Bill. I de- plore that as much as anybody does. It was not from failure to ask them, but they did not see their way to do it. I could not see my way to hold up the Bill, in view of the requirements of the Army in the field and of the mercantile marine. As I explained to the House, I could not be in a state of paralysis in war. We must do something, and we had no alternative but going on with the Bill. But I say now nobody would rejoice more than we would if the Amalgamated Society of Engineers, the executive committee and the proper authorities of that important society, would meet us and discuss this question. We would be delighted. As a matter of fact, I do not mind saying that I have had a talk with the council of the Amalgamated Society of Engineers this evening. I sincerely hope they will see their way to join us in discussing this Bill. We cannot abandon the principle; I do not want any misunderstanding about that. I cannot see our way to produce the goods if we do. But, short of that, I would go any length if it were to make peace or contribute towards a settlement I will favourably consider the suggestion of my hon. Friend, but we must adhere to the principle of the Bill.
Will you abandon Section 7?
I am willing to discuss matters, but we must have this principle. I cannot give it away on any account, as you cannot get munitions, and I am not going to give way on that. Short of that, we will do everything we possibly can, and nothing would delight the Government more than even at this time, when the other unions have considered their Amendments, if the Amalgamated Society of Engineers would join us and submit their suggestions, and we will do what we can, consistent with our obligations, to meet them. That is the case as to the failure to negotiate. I am sorry to have occupied so much of the time of the House, but the House cannot say that I often come down and make long speeches. I should like to go a little further still into the charges made by the hon. Member for Attercliffe and come to the actual point of the charge. In doing so, I should like to say that I do not myself know of any suggestion of a conference or negotiation from any responsible representative body of trade unionists that we have ever declined. I do not think the hon. Member for Atter- cliffe can mention a single industrial grievance that he has brought to our attention that we have not honestly and fairly tried to meet. It is a little late in the day to accuse the Ministry of Munitions of failing to negotiate in circumstances of that kind. We have gone out of our way morning, noon, and night to negotiate on these questions, and on any other questions. The hon. Member for Altrincham cast a new light upon the problem of the strike. He suggested that in some way it was connected with my own frugal meals in the evening. You never know how remote effect may be from cause. I must say it never occurred to me. I quite agree with him that the workpeople in many places are overwrought. They have got a bit stale. In ordinary colloquial language, they have got "a bit fed-up." I quite agree with that. I wish we could give them a week's holiday.
They have taken it!
Yes, and in a most unfortunate manner. That is not the kind of holiday I was thinking about. In some cases we might afford to do it. We could not afford to do it in all.
Shorter hours of labour might mean a bigger output?
I should be glad if my hon. Friend will tell me where to find the workpeople to fill the blanks. I should be delighted to do it, but if you work three shifts instead of two you will have to find more workpeople—that is the trouble and difficulty. As a matter of fact, we have cut down Sunday work in everything except the most urgent munitions, so that it is practically abolished. I agree with the hon. Member for Altrincham that a large number of the men do not know why they are on strike. Remember what the resolution said—that this strike was entirely unauthorised. I want to call the attention of the House once more to the statement which I made this afternoon, that one of the signatories to the letter to which I replied yesterday has his name at the foot of this telegram to the Ministry of Munitions:
"Joint Engineering Shops Stewards' Committee repudiate any interference by the official executives of the workers in the present dispute."
I shall be happy to supply a copy of that telegram, if it is wanted, to any responsible person who challenges that statement—and I understand it has been challenged. In the first place, this dispute was alleged to be due to the very improper action of a certain firm in Rochdale. Nobody condemns that action more than we do. As the week went on telegrams poured in, and it was then attributed to the withdrawal of the trade card scheme. We arrived at an agreement upon that on the Saturday night, as I have said. Then the telegrams began to mention only the Munitions of War Act. There was great confusion in the telegrams, and I entirely agree with my hon. Friend that a good many of the men did not know why they were out. Knowing this confused state of affairs, when I received the letter—which is another part of the charge of failure to negotiate through this committee that met in London—I wanted to make it quite clear that we could not and would not depart from the principle of negotiating only through the recognised trade union. The last thing in my mind was to cast any unfair responsibility on the executive of the union, and I do not think that my action did so. I was anxious, in the interests of all, to make it quite clear that whilst we would negotiate only with the Engineers Union, if the Engineers Union desired to bring these gentlemen we should make no question about it. I think they were quite right. When members of the deputation send telegrams of the character I have indicated, I think the executive committee are quite right; but, whether they are right or wrong, the point is that you are prepared in the interests of peace to meet the members of the executive and anyone they like to bring along with them. In this letter we are told that those whom I have refused to meet are the duly accredited representatives of the men affected, and that they represent the districts where there is a cessation of work. I find that one of the signatories to this document comes from a district where the men are not on strike at all, and also comes from a district where the workers have met together and repudiated the invitation to go on strike and are remaining at work, so that it certainly does not represent the workers in that district. I should hope that the other signatories of the letter have somewhat better credentials. At all events, that affords some reason for refusing to meet these gentlemen. But there is a much bigger question involved than that, as the hon. Member for Stockport said. Who appointed these gentle- men? To whom are they responsible? You make a bargain with them. Can they deliver their share of the bond?
The executive can.
The hon. Member's observation does not make their task any easier. There is no guarantee except their own unsupported statement that these men are appointed by anyone. For anything I know, they may be self-appointed, and there is nothing to show that if we did negotiate with them they could bring about peace, or had any desire to do so. The hon. Member for Attercliffe as a rule speaks to the House with strict adherence to what I may call sound logical principles. I cannot understand his championing all the principles of trade unions, and at the same time blaming the Ministry of Munitions for declining to meet these gentlemen. They will not mix at all, any more than oil with water. If the executive of the unions has not hitherto recognised these gentlemen, why should I? What would be the effect if I did? It would mean that a body of men representing those who are on strike, or saying they do, in a district getting together and negotiating with a Government Department. Supposing they can fulfil their side of a compact for their shop, who is to say that to-morrow another body will not come from another district and want another bargain in another shop? That is not industrial peace; it is the high road to industrial anarchy, and I decline to take it. I say that if we were to recognise, without the concurrence of the executive of the trade unions, those men professing to represent strikers, we should strike a blow at the very foundation of the whole trade union movement; and if the trade union organisations are going to be destroyed, it is not the Ministry of Munitions or this Government that is going to destroy them.
You have done it.
The hon. Member says we have done it.
You certainly have weakened the authority of the executive of the unions.
The hon. Member has done a lot to maintain it. The hon. Member is the last Member of the British House of Commons who should upbraid me for not maintaining their authority because for an hour he urged me to meet a body who were defying their executive. Surely he is the last person who should bring that charge against me. I cannot understand the statement that the Munitions of War Act has destroyed the authority of the executive. That Act is the legislative expression of a compact with the executive committees of trade unions. It is true that for the period of the War, in a national emergency, trade unionists, like the men in the trenches, sacrifice certain rights. We recognise that, and when the men voluntarily have thus surrendered certain peace time liberties in so far as that is correct it is true that neither the executive nor the members of the union have the same freedom as they had before the War. That is inherent in the case itself, because we are at war. This Act is the expression of an agreement with the trade unions themselves, and I ask any fair-minded man in this House or out of it has there ever been a period in British history when trade union executives have been more freely brought into conference than during the period of this War. There never has been a period when any Government in any country has done more to support the authority of trade unions than has been the case during the present War. I am speaking, perhaps, with some measure of warmth, but I do not make any apology for it, for even a worm would turn, for I am accused of all this lack of negotiation in face of the numerous times I have gone home late at night, having spent the whole day doing nothing else but negotiating and I only wish the hon. Member opposite had spent as many hours at it as I have days. I am sorry to say that my view is, and it has been my view for some time past, that there was going to be trouble anyhow. I will be quite frank on this point. I have satisfied myself for some time past that we had a period of trouble before us, and if it had not been for a firm in Rochdale, or this schedule, or the Munitions of War Bill it would have been something else. I am afraid that this has been brewing for some time. I know it is said that one day we want this programme and a few months later we shall wish to change it for something else. I know these people have a good deal of justice in their complaint. [An HoN. MEMBER: "Why?"] Because we happen to be at war.
It is not necessary to do this because you are at war.
The hon. Member always knows better than anyone else. One hon. Member says, "You ought to know better," and another, "You are incompetent." Suppose, for argument's sake, I admit both those soft impeachments. I ask, what would the hon. Member have done? Did the hon. and gallant Member for Mansfield or the hon. Member for Lanarkshire foresee the great use of heavy guns in this War in 1914? Did he foresee that we should be required to turn out aeroplane engines hundreds and hundreds per month? Did he foresee that we should turn out tanks by the hundreds? Did he foresee that the Ministry of Munitions would be called upon one day for 1,200 miles of railway track and 29,000 railway trucks? Did he foresee that? Did he foresee that we had to get locomotives from the ends of the earth? I could go on for an hour cataloguing these things. Neither the hon. Member for Attercliffe nor the hon. Member for North-West Lanark, or anybody else, foresaw any of these things. Once you thought that you could do with voluntary enlistment; but you had to come back to the House of Commons and say, "I am sorry. It will not meet the bill at the present moment. We must have compulsory service. "Everybody believed and sincerely thought dilution on war work would supply the skilled men necessary, but with a gigantic programme which nobody did foresee, or could foresee, dilution on war work has failed to supply the men, and that is the only justification. It is, however, a complete justification for coming down and saying, "I am sorry, Gentlemen. I agreed only to dilution on war work last autumn, and now I am sorry to say I must ask you to extend the principle to commercial work." That was the reason. I do not think the hon. Member for North-West Lanark, who likes to have a shot at us sometimes, if he looks at the matter in a fair spirit, will think that it is due to any inherent incompetence in the Ministry of Munitions. It was due to the emergency of the War and the unexpected demands of the programme.
I am afraid, as the telegram I have quoted to the House shows well enough, that some of the men who are responsible for this trouble, for some reason or another —I do not pretend to understand it, although I have honestly tried—are anxious to upset the authority of their own executive. That telegram does not stand alone. I could produce a whole budget of them of a similar kind. Why these men want to upset the authority of their own executive I do not know, but there it is, and I am afraid that they would be very glad if the Ministry of Munitions were to negotiate with them and pass by their own executive. I am afraid that their temper and disposition is such that they would be quite glad, because they would thereby have scored off their own executive. We are not going to lend ourselves to that kind of petty feeling. I ask the hon. Member who accuses us of having failed to negotiate, if he or any other man representing labour, or for the matter of that not representing labour, has ever brought any grievance to our notice that we have refused to listen to or has ever asked us to receive representatives of the trade unionists that we have refused to receive? He cannot, I believe, name one single case. Can the hon. Member for Attercliffe tell me what is the grievance of these men meeting in some place in Walworth? If they have a grievance, why do they not put it before their own executive and say, "You ventilate it for us and represent our grievance"? I should have thought it would have been the first thing that would have occurred to any loyal trade unionist, and I cannot fail to attach significance to their failure to do so. I should be glad if anything I could say would bring the case more nearly home to some of these men, who, apparently in pursuit of grudges against their own executives, go about to stir up trouble in munition works. I wish that every munition worker would read the Schedule for himself, would read the explanation, and would ask his union to represent any of his difficulties. I wish that they would even read what has been published about the Munitions of War Bill. We will do anything we can to help to enlighten them.
I wish some of those who so lightly bring men out of work would call their attention to another issue. I wish that the men who fetched about twenty men out of one place in London yesterday, where they are making apparatus for the hospitals in France, to be sent over there as soon as possible, would have explained to those men that side of the case, and would have exhorted them to ask their own executive to try and represent their grievances in a proper manner. In another place in London yesterday, a handful of men where brought out because they were afraid of being accused of being blacklegs. That is the reason with most of the men—they do not wish to be called blacklegs. A lot of them really do not quite know what it is all about. These particular men certainly do not, because they have said so. They happen to have been making some instruments which are used in "X"-raying. It seems that there is a very pressing demand for them at the present time. Here is a list which I am sorely tempted to read. [HoN. MEMBERS: "Go on!" and "Read it!"] Well, it is guns that are being delayed by this strike. There was a considerable number of 8 in. howitzers delayed in the three weeks or thereabouts strike at Barrow—a so-called strike, for I have no notion to this day what that strike was about, and I have not found anybody yet who can clearly tell me what it was about. A certain number of men persuaded their fellows to go out on strike.
Did you prosecute?
Was it not due to the fact that the time rate was cut?
That is the only point that has been brought out at the moment. Sc. far I have not received evidence that it was. If the time rate was cut it was a pernicious thing. At all events, if that were the case it was not a justification for delaying eight-inch howitzers. I should have no more hesitation in compelling Vickers-Maxim to keep to their time rates than anyone else.
Why did you not do it?
I did not know they did not.
Have you done it?
They have not brought it up to me yet. There are forty-five six-inch howitzers and thirty carriages being delayed now. I will give that one figure. Just fancy that. What does it mean? It does not mean to-morrow or next week. It means difficulties for our troops in France in June and July, and so on, for the continuation of the offensive. I say I could give an illustration of a much more telling kind if necessary—that every day this strike is prolonged it means that there will be a greater sacrifice of life by our men in France in June and July, and it means that the certainty of their success is placed daily more in jeopardy. I wish the hon. Member (Mr. Anderson) who lectured the Ministry of Munitions so freely would point out to some of the men involved what the consequences are on the other side. I have spent many a weary day—it has been my duty—in helping to try to smooth over difficulties in engineering shops, and to patch up differences between men and their unions. How many days has the hon. Member spent? I wonder what steps he has taken to speed up output. He may have done these things, and I hope he has, and I do not wish to misinterpret him in the least; but I see the results of this disorganised, irregular striking. I know what it means to our men at the front. We have had some experience of the difficulties, and we have done everything we could in our physical capacity to meet all those questions which have been raised by the most tedious, prolonged, and patient negotiation, and, notwithstanding the challenge that I ought to have met these men, I still adhere to the decision which I came to yesterday, that notwithstanding the difficulties of the hour we shall adhere to the policy of consulting only by and through the recognised executive councils of the great trade unions of this country who have stood by us and helped us from the very first hour of the War until now.
I desire to point out that the particular question upon which this Debate arose was disposed of almost immediately, and I do not believe there remains a single Member of the House who really thinks it would have been a wise thing to negotiate with these men. After all, one of the wonders of the history of the War has been the arming of our amazing Army and their present amazing equipment of munitions. That achievement was due not only to organised labour, but to the organisation of that labour, and it would be one of the most ungrateful acts of a country which is really grateful to punish the organisations of labour for their marvellous sacrifices to the country by negotiating behind their backs and against their wishes with people who are spurning their authority and refusing to obey their decisions. Having said that, nobody can have listened to the speech of my right hon. Friend without realising how serious in its consequences, how wearying to the moral of the nation, and how prejudicial to the success of the troops are these strikes. With regard to the withdrawal of the trade cards and the substitution of the schedule, the agitation seems to me, as an outside observer, to be coming to a close. The next system is being more fairly understood. The negotiations which have taken place have had the most useful results, and I think that question may be regarded now in all probability as settled. With regard to the dilution of labour in what is called private and commercial work, I think it is only fair to the right hon. Gentleman who now has this enormous burden of responsibility upon his shoulders to say that the decision to dilute labour on private and commercial work was taken by the late Government; was started on the finding of the Man-Power Board, presided over by my right hon. Friend opposite; that the negotiations were begun in November last when I was at the Ministry of Munitions by the Labour adviser, who is a member of the present War Cabinet; that we had these negotiations in November with the twenty-eight unions who signed the agreement, and I think the meeting with the Amalgamated Society of Engineers was summoned from the very day that I left office. I am glad to learn from my right hon. Friend that he does not propose to abandon the Bill. Really the distinction between war work and peace work, between private work and public work, is negligible. You cannot separate the two. You must maintain your industries for the men who return from the front. Many private enterprises feed your war enterprises and I would appeal in all earnestness to my hon. Friend the Member for Attercliffe to consider this situation. If the Government finds that it is wrong, if it finds a greater tax on the resources of the country than it anticipated, and if a failure to meet the emergency helps the Germans, what can that Government do than go to the people with whom it made the pledge and point out the difficulties and ask them to release them from the pledge? Are you to abandon making munitions of war because mistakes have been made in the past? No Government that is worth its existence would take a course of that kind. Therefore I am glad that my right hon. Friend is not withdrawing the Bill, and I am also glad that he will show so reasonable a spirit in regard to possible Amendments in answer to the suggestion made by the hon. Member for Stockport (Mr. Wardle). I think it is the duty of every man who has listened to this Debate to go to anyone interested in these strikes with whom he has influence and to implore them to negotiate with the Ministry of Munitions through their executive committees, who have done their duty by them and by their country so nobly throughout the War.
My right hon. Friend (Mr. Montagu) wound up his speech by an eloquent appeal to any Member who has any influence with those who may be affected by this strike, and to use that influence for the purpose of bringing the strike to an end. I think, even without that appeal, I can claim to have done that. I had the honour of speaking at a large meeting in the East End of London last Sunday. The question of the strike was raised on that occasion and I advised those with whom I came into contact that they should have nothing to do with the strike. Consequently, so far as my own influence has been concerned, it has been to prevent men joining in the strike as far as I possibly could. Therefore, I come into this discussion, if I may say so, with clean hands. I regret, and I am sure every hon. Member of the House must regret, the speech that has just been made by the Minister of Munitions to-day. [HON. MEMBERS: "No!"] We know to-day that there are tens of thousands of men out on strike, and by their being on strike they are delaying the essential production of munitions of war. We ask for a policy from the Government, but the Government has given no policy to the House—it is a negative policy. The right hon. Gentleman says we will not negotiate.
With whom?
He says, "I have negotiated with the executive of the union." Of course, he has. But if the strikers decline to be bound by the executive of the unions, what is the use of negotiating with people who have no representative authority? You might as well say we shall now negotiate with the Tzar of Russia and not with the existing Russian Government. So far as the men out on strike are concerned, the executive council have as little authority as the late Tzar of Russia has with the people of that country. [HON. MEMBERS: "No!"] It is so. If you are going to negotiate you should only, naturally, negotiate with the people who have the power to represent those with whom you wish to deal. That is the only policy of negotiation. But on a silly matter of punctiliousness, because these men cannot produce paper credentials, because they have not been elected in the ordinary way, the Minister of Munitions will not negotiate. There are two ways of dealing with this strike, and only two—the way of coercion and the way of negotiation. The Munitions Act was passed in order to put the weapon of coercion into your hands, and you dare not use it. The right hon. Gentleman to-night never suggested that he could use it. It has broken in your hands, as I told you when you passed it that it would. The executives who agreed to that Act are discredited will their men, because they believed that the Ministry then deceived the Executive—as they did. They are not going to have any backstairs arrangements with non - representative executives. They are not going to have legislation hustled through the House in the late hours of the night, to which the light of day is not admitted. Had it not been for the protests of myself this Bill would have been passed without anybody's knowledge before Easter. It is by my obstruction that to-day there is an opportunity of reconsidering it. It was taken by surprise on Monday a week ago when there was hardly a Labour Member in the House. The official Labour Members get the whip, but many of them had gone for the week-end to their Constituencies and could not be back. Yet the Ministry were willing to take advantage of their absence to hustle this Bill through. They were willing to take the Report stage, and it was only on account of the protest of some Members in this part of the House that that was not done. It is because the Ministry resorts to these underhand and backstairs methods that the people of the country will not believe a word you say. Your pledges stink in their nostrils.
And so do your speeches.
I can get an audience where I please in the open-air without him. The Government have no policy. This was understood to be a good Government. That was why they got rid of the last Government. Why, I believe that the right hon. Gentleman opposite would have done better than this apology for a Minister who has been addressing us. Was there ever a more pathetic spectacle of ineptitude than the long rambling paralysed speech to which we have listened? It was enough to make us all feel ashamed.
:Go on, Boanerges!
Question, "That this House do now adjourn," put, and negatived.
Supply
Civil Services and Revenue Departments Estimates, 1917–18
Postponed Proceeding resumed on Question proposed on consideration of Question,
"That a sum, not exceeding £238,923, be granted to His Majesty, to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1918, for the Salaries and Expenses of the Office of the Committee of Privy Council for Trade and Subordinate Departments."
Question again proposed, "That a sum, not exceeding £238,823, be granted for the said Service."
Motion made, and Question, "That the Chairman do report Progress; and ask leave to sit again"— [Mr. James Hope] — put, and agreed to.
Committee report Progress; to sit again upon Monday next.
The remaining Orders were read, and postponed.
London Omnibus Dispute
Whereupon Mr. SPEAKER, pursuant to the Order of the House of the 12th February, proposed the Question, "That this House do now adjourn."
Has the Parliamentary Secretary to the Ministry of Labour any information he can give to the House in respect to the omnibus strike, which has caused so much inconvenience?
At a conference held between representatives of the London General Omnibus Company and the London and Provincial Union of Licensed Vehicle Workers, with representatives of the Transport Workers Federation present, the right hon. Member for Barnard Castle (Mr. Henderson), after hearing the views of both parties, submitted the following proposals with a view to a settlement: (1) That the London and Provincial Union of Licensed Vehicle Workers withdraw the letters dated 3rd and 4th May, thus bringing the relations of the company and union into the position which existed prior to the decision taken at the annual delegate meeting of the union.
(2) That the agreement entered into on the 22nd September, 1913, be subject to review at a conference to be presided over by Sir George Askwith between representatives of the company and the union at an early date to be mutually agreed upon.
(3) That there be an immediate resumption of work on the part of members of the union.
(4) That the reference of an application for a war bonus be proceeded with by the Committee on Production, and that any award made by that Committee take effect as from the date on which work is resumed.
(5) That at the request of the right hon. Gentleman the Member for Bar- nard Castle the London General Omnibus Company undertake to reengage the ten employés concerned in the Palmers Green incident.
The representatives of the company and the union undertook to present the above proposals to those whom they represent, and to recommend their acceptance. I am glad to be able to announce that both parties agreed to-night to accept them, and that a resumption of work will take place to-morrow morning.
Question put, and agreed to.
Adjourned accordingly at Three minutes after Eleven o'clock till Monday next, pursuant to the Order of the House of the 12th February last.
Petitions Presented During the Week
The following Petitions were Presented during the week, and ordered to lie upon the table:—
Monday
Intoxicating Liquors (Prohibition during the Period of the War and Demobilisation). —Two Petitions from Aberdeen, for legislation.
Wednesday
Enemy Aliens.—Petition from Edinburgh, for internment.