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Commons Chamber

Volume 129: debated on Wednesday 12 May 1920

House of Commons

Wednesday, May 12, 1920

Private Business

Nottingham Corporation Bill,

Pontypridd Urban District Council Bill,

As amended, considered; to be read the Third time.

London County Council (Money) Bill (by Order),

Second Reading deferred till Tomorrow.

Gas Provisional Orders Bill,

Ministry of Health Provisional Orders (No. 2) Bill,

Read a Second time, and committed.

Oral Answers to Questions

India

Auxiliary Forces Bill

asked the Secretary of State for India whether, seeing that the Governments of the Dominions have power to institute compulsory or any other form of military service within their respective Dominions and that India is now on an equality with the Dominions, he will state by what right he has delayed the Auxiliary Force Bill brought in by the Government of India simply on the grounds that he is opposed to compulsory military service in peace time?

As I remember the active part taken by my hon. and gallant Friend in the Debate on the Government of India Bill of last year, I cannot really believe that he now thinks the Act conferred complete Dominion Government on India. I would refer him to Sections 2 and 33 of the Government of India Act, 1915–16, which were unaffected by last year's Act.

Does the right hon. Gentleman think it right that he should prohibit the Indian Government from bringing in a Bill which they think, in the interests of those concerned in India, ought to be brought in and passed?

The Secretary of State for India has the responsibility of sanctioning the introduction of Bills, and of recommending His Majesty to allow them when passed. I am with the hon. Gentleman in his desire to have an adequate Indian defence force, but I do not believe it is necessary to insult the European population of India by saying that compulsion is necessary before they will serve in that force.

Is the right hon. Gentleman not aware that all the European populations have passed resolutions in favour of this Bill?

Abduction of British Officer's Wife, Peshawar

asked the Secretary of State for India whether he has yet received details regarding the case of the British officer's wife who was carried away from Peshawar by Afridi tribesmen and what steps the Government of India proposes to take to bring them to justice?

If the House will allow me, I will read out a statement which the Government of India have published concerning this case:

As there have been exaggerated rumours regarding abduction of an English lady from Peshawar cantonment, we are authorised to state that the following are the actual facts. A gang of Afridi ruffians entered outskirts of Peshawar cantonment of Sadar Bazar late on the night of 23rd-24th March, probably with the object of theft. It happened that, contrary to usual practice, an English lady and her family were occupying the house in this exposed quarter. The gang broke into this house, and carried off the lady, dragging her in a most brutal manner with them across the border. The alarm was raised as soon as it was found what had happened, and troops, militia, constabulary, police, and villagers started in pursuit in all directions, with the result that the gang was all but intercepted, and one of them was actually arrested.

Meanwhile, Khyber authorities got into touch with the Afridis along the border, and an Afridi rescue party of over 1,000 men started within a few hours. Members of this party pushed forward, blocked passes, came into conflict with the gang more than once, and eventually rescued the lady after some sharp fighting. The lady was at once brought into Jamrud within 36 hours of her abduction—a very prompt performance, considering the nature of the country. The next day a large Afridi jirga of all sections waited spontaneously on the Political Agent at Khyber to express their abhorrence of this outrage, their sincere regrets that members of their tribe should have been guilty of such conduct, and their assurance that such acts would not be permitted in future.

Measures are in progress to ascertain the identity of the offenders, and to take further action. No ransom was paid, and no reward given to the rescue party, who were told that they had merely done their duty. The Government of India assure me that every effort is being made to secure the arrest of the offenders, and to exact reparation from the section to which they belong.

Was this English woman fairly treated during the time she was in the hands of the tribesmen?

I must refer my hon. Friend to the passage in the answer, which says, "and carried off the lady, dragging her in a most brutal manner with them across the border." I do not think it would be in the interests of the lady to give a detailed description of her treatment.

Medical Service

asked the Secretary of State for India if he can state the number of officers of the Indian Medical Service, native and European, in 1914 and 1919; how many of each race were gazetted in 1919; and what steps he is taking to make the Service attractive to English doctors?

In 1914 the number of officers in the Indian Medical Service was 706 Europeans and 63 Indians. In December, 1919, excluding officers holding temporary commissions, there were 650 Europeans and 80 Indians. During 1919, 25 Europeans and 21 Indians were appointed to permanent commissions.

In amplification of improvements already sanctioned, I hope to announce at an early date increased rates of pay and pension for the Indian Medical Service. I also recognise that it is essential to improve the facilities for leave and study, but no decision on these points can be effective until recruitment has brought the Service nearer to its normal strength.

If I put a question in a month's time, will the right hon. Gentleman say if he hopes to be able to give the increases and the other arrangements for improving the Service?

Yes, I hope so, and if my hon. Friend will permit me, as soon as a decision has been reached, which, I hope, will be only a matter of a few weeks, then I will let him know.

Royal Navy

Ex-Enemy Warships

asked the First Lord of the Admiralty to what use it is proposed to put the ex-enemy warships provisionally allocated to this country?

The ex-enemy warships allocated to this country will be broken up.

H.M.S. "Indus," Artificers' Mess

asked the First Lord of the Admiralty whether it is intended to provide afloat in the "Indus" establishment an engine-room artificers' mess: if so, is he aware that it will create much unnecessary boat work and inconvenience to those concerned; and will he state why the chief and engine-room artificers belonging to the Devonport depot cannot have the same satisfactory messes provided for them as exist both at Chatham and Portsmouth?

It is regretted that the inquiries necessitated by this question are not yet complete, but I will forward the information asked for by my hon. Friend as soon as it is received.

Officers, Voluntary Retirement

asked the First Lord of the Admiralty whether officers who retire voluntarily under the special scheme for retirement will be given an assurance that their pensions will be secured to them whether they return to the Fleet or not?

All officers in receipt of retired pay, whether retiring under the special scheme of retirement or under the ordinary Regulations, are liable to be called up for service in war or emergency as a condition of receiving such retired pay. Also, all officers retiring with gratuities under the special scheme of retirement must undertake to place their services at the disposal of the Admiralty in the event of war or emergency.

There is no liability on a retired officer to serve on other occasions, though he may be employed voluntarily. When re-employed, retired officers draw the full pay of their rank on the retired list, with allowances and a bonus in lieu of counting time towards increase of retired pay, but cease to draw retired pay.

Deserters

asked the First Lord of the Admiralty whether some months ago instructions were given that no action was to be taken with regard to naval deserters, and three months afterwards these instructions were withdrawn; if so, whether these instructions were intended more or less to carry out a general amnesty; and whether he can state the reason for the change in policy?

In September last the reduction of the number of men in the Fleet was an urgent economic necessity. Orders were issued to effect this; one of them in a confidential letter to flag officers was that, until further notice, deserters would not be claimed. There was no intention whatever of granting a general amnesty, the object being solely to avoid expense in recovering men who were not required. This confidential letter was improperly published in a newspaper, and an erroneous impression was thereby conveyed that desertion was no longer an offence against discipline. The order was therefore immediately cancelled; but steps were taken to mitigate the punishment of men who had been misled by the newspaper.

No, Sir; I do not think we have any reason to alter the decision arrived at and announced in the House some months ago.

In view of the fact that an Indemnity Bill is before the House indemnifying others, could not these men be included in that Bill?

This matter was discussed in the House some months ago, and, so far as the Admiralty are concerned, we are not aware of any cases in regard to which a general indemnity would be defensible. I am sure my hon. Friend, and the House, will realise that the first duty of the Admiralty is to see that nothing is done that will diminish discipline.

Have steps been taken to prevent the man who wrongfully published that letter from publishing other letters?

Royal Dockyards (Merchant Tonnage)

asked the First Lord of the Admiralty whether any offers have been made by steamship companies and other firms to build, repair, or recondition ships in His Majesty's dockyards; whether any offers have been refused or have elapsed; and, if so, will he give details regarding the offers made and the reasons for their non-acceptance?

The following offers have been made by steamship companies and other firms to build, repair, or recondition ships in His Majesty's Dockyards:—

Date of Offer.

Name of Firm.

Nature of Work.

1. October, 1919

Messrs. J & H. Maxwell Jones, Plymouth.

The construction at Devonport of:—

( a ) One "C" type standard steamer (5,150 tons dead weight).) One "C" type standard steamer (5,150 tons dead weight).

( b ) A coasting steamer (750 1,000 tons dead weight).) A coasting steamer (750 1,000 tons dead weight).

( c ) A steam trawler.) A steam trawler.

2. October, 1919

Cunard Company

Reconditioning of "Caronia."

3. November, 1919

Messrs. Cayzer Irvine

The construction of 2 merchant steamers.

4. January, 1920

Plymouth Co-operative Society

The construction of a small collier.

5. February, 1920

Mr. F. Le Boulanger, Swansea

Hulls of one or two ships, about 260 270 feet long. Machinery available.

6. April, 1920

Cunard Company.

Reconditioning of "Saxonia."

Inquiries have been made by several other firms as to the possibility of ships being built for them, but definite offers have not been received.

As regards offers No. 1 ( a ) and 4, negotiations are at present in progress with a view to undertaking at Devonport the construction of the "C" type standard steamer offered in October, 1919, and also the small collier offered in January, 1920.

As regards offers No. 1 ( b ) and 1 ( c ), the firm making the offer has been informed that should it be found possible at a later date to undertake more merchant shipbuilding at Devonport Dockyard, their offer will receive further consideration.

When offer No, 3 was made, the Admiralty were not in a position to undertake the work.

Offer No. 5 was not acceptable as the machinery had already been made, and only hulls were required. Machinery work is wanted in the dockyards as well as hull work.

With regard to offers No. 2 and No. 6, the reasons why the "Caronia" and "Saxonia" were not reconditioned in His Majesty's dockyards are fully stated in my reply to the hon. Member for Sutton (Viscountess Astor) on 5th May, a copy of which is forwarded herewith.— [See OFFICIAL REPORT, 5th May, 1920, Col. 2098, Vol. 128.]

Schoolmasters

asked the First Lord of the Admiralty whether he is aware that naval schoolmasters have had their recently-revised rates of pay antedated only to 1st January, 1920, whereas in the case of all other officers and men of His Majesty's Navy the date was 1st February, 1919; is he aware that the naval schoolmasters are in a similar position to skippers, Royal Reserve, Voluntary Aid Detachment nurses (Q.A.N.N.S.), and lieutenants, Royal Marines, whose rates of pay were also revised subsequent to 1st July, 1919 (Cmd. 270), and that in the latter cases the revised rates were also antedated to 1st February, 1919; and why is the schoolmaster branch made the sole exception to the Jerram-Halsey Committee's approved recommendations in respect to the antedating of the revised rates of pay?

The whole matter is now under consideration, and a further announcement will be made as soon as possible.

asked the First Lord of the Admiralty, inasmuch as, according to the latest regulations in the Navy List, schoolmasters are to be pensioned on the scale laid down for other warrant and commissioned officers from warrant rank, are there any other scales which may be applied to schoolmasters; and, if so, to whom and under what conditions exactly will they respectively be applied?

There are three special scales of retired pay or gratuity applicable to schoolmasters. The first applies to schoolmasters invalided with less than ten years' service. It was introduced because schoolmasters, unlike other warrant officers, do not enter the Service as ratings, and it would not be reasonable to grant them the same retired pay after short service as that accorded to warrant officers, who only attain that rank after considerable service as ratings. The second applies to schoolmasters retiring voluntarily with less than 25 years service. Schoolmasters, unlike other warrant officers, are eligible, at Admiralty discretion, to retire at any age, whereas the ordinary warrant officer is not eligible until after age 40. The third applies to schoolmasters who are found inefficient or unworthy of further employment. The scales are set out in detail on pages 2,268 and 2,269 of the Quarterly Navy List.

Jutland Battle (Prize Bounty)

asked the First Lord of the Admiralty why no prize money has been paid in respect of the Jutland battle; and what is the explanation in regard to it?

I presume my hon. Friend refers to prize bounty, as prize money in this connection is not in question. The claim for prize bounty has not yet been considered by the Prize Court, owing, partly, to delay in ascertaining the actual losses by the enemy and the receipt of claims on behalf of the ships taking part in the fight. The total amount involved is very small compared with the number of officers and men entitled to share, and there has been reluctance on the part of several ships to advance their claim. The matter is, however, now in the hands of the ships' agents.

May I ask when the hon. and gallant Gentleman thinks it will be possible to make a further announcement?

Perhaps my hon. Friend will be good enough to put a question down immediately after the Whitsuntide Recess.

Would it not be possible to ascertain from the German authorities what their actual losses were?

Mercantile Marine, Admiralty Service

asked the First Lord of the Admiralty whether he is aware of the good services performed by the Mercantile Marine ratings attached to His Majesty's ships during the War, which has been recognised from public platforms by His Majesty's Ministers on numerous occasions; whether he is aware that many of these ships were engaged in combatant service and that many Mercantile Marine ratings served on active fighting vessels; whether he can inform the House why these men have been excluded from all payment of war gratuity for active service; whether he is aware of the difference in the rates of pay which these men were receiving when enlisted under T 124 and T 124 Z articles and the corresponding rates of pay which they would have been receiving in the Mercantile Marine with the average amount of overtime?

I am aware of the good services rendered by the Mercantile Marine Reserve attached to His Majesty's ships during the War, and, as stated, these have been recognised on numerous occasions. Naval War Gratuity, however, is issuable only to naval ratings who received Naval rates of pay. The rates of pay granted to Mercantile ratings engaged under Agreement T 124 (and variants) during the War, were higher than those paid to Naval ratings, and taking into account the various increases of wages granted by the Admiralty to Mercantile ratings during the War, and the special benefits attaching to Admiralty service, namely, continuity of employment, periodical leave with full pay, free uniform and periodical gratuities for maintenance thereof, compensation on invaliding, and pensions on navy scale to many Mercantile Marine Reserve ratings invalided through injury attributable to the Service—their remuneration compared not unfavourably with that earned by men in the Mercantile Marine.

May I draw the hon. Baronet's attention specially to the services performed by the captains and men of the cross-Channel services through the whole of the War, day and night, and to the fact that they carried out their duties under conditions often of very great danger, and always with the greatest care?

Admiralty, Motor Vehicles

asked the First Lord of the Admiralty whether the nine motor vehicles on Admiralty charge in London are garaged in the Albany Street garage or in the garage in St. Martin's Mews, Trafalgar Square; and whether he can state the total sum paid in wages to the staff responsible for the control, care, and maintenance of these motor vehicles during the month of March, the total amount of motor spirit used, and the mileage during the same period?

The motor cars allocated for the use of the Headquarter Staff of the Admiralty are garaged at Albany Street. The total sum paid in wages to the staff, in respect of the control, care and maintenance of these vehicles for the month of March is £283. The amount of petrol used by these vehicles during that period is 425 gallons, and the total mileage run, 4,800 miles. It has been approved to reduce the number of cars from nine to six.

Is the hon. Baronet aware that this mileage works out at only about ten miles per gallon or less?

If my hon. and gallant Friend will put down a question I will ascertain the details. I can assure him that the cars are put to a very useful purpose.

Can the hon. Baronet say what number of cars are accommodated in this garage: I under stood that it was about 40?

Can the hon. Baronet state the number of men employed, the number of miles run, and the sum paid in salaries?

Every possible economy has been exercised throughout in connection with these cars. They have been reduced from nine to six, the very lowest number to which it will be possible to go. In regard to any further details, I must ask for notice.

Is it not the case that the economy now practised is less than that which was practised before the War, when no such privileges were given to Cabinet Ministers or anyone else?

Naval and Military Pensions and Grants

Disability Pensions (Retained Naval Ratings)

asked the First Lord of the Admiralty whether his attention has been called to paragraph 47 of the Jerram Report, which recommends that men partially disabled and retained in the service should be eligible for the award of disability pension, to be received in addition to active service pay; whether steps have yet been taken to put this recommendation into effect; and, if not, when this is likely to be done?

This question is awaiting the settlement of the post-War scheme of compensation which is engaging the attention of an Interdepartmental Committee appointed by the Cabinet.

Ex-Service Men

Appointments Department

asked the Minister of Labour whether the Appointments Department are having great difficulty in finding work for unemployed and demobilised officers; whether he can state how many of the 6,229 officers stated by him on 28th April have since been found employment; whether many of these have been registered for a considerable time and are now in actual want; how many applications for employment are the Department receiving weekly and how many are being found employment; whether these figures are increasing or decreasing; and whether any further steps are being taken to find employment for these officers?

There is unquestionably great difficulty in finding employment for ex-service officers and men, as may be judged from the fact that on 30th April, against 12,913 ex-service applicants, officers and men, on its books, the Appointments Department had only 2,555 vacancies. I am afraid this difficulty may presently increase as the possibilities of employment have been very thoroughly explored, and it is anticipated that in some directions there is little more scope for placing officers and men. Of the 6299 ex-officers who were stated to be on the "live" register of the Department on the 16th April, 1920, 523 have been placed in employment by the Department, and 123 others are known to have obtained positions by their own efforts. Many candidates, owing to their lack of professional or commercial qualifications, remain on the register for a considerable time, and some of these are found to be in necessitous circumstances. In order to relieve cases of this kind, the Department established practical co-operation with the various voluntary associations and funds created for the benefit of ex-service officers and men, and where a candidate is known to be in need of financial assistance his case is immediately submitted to the appropriate association. Three hundred and forty-three cases have been dealt with in this way since the beginning of the year. The average number of applications for employment received by the Department weekly over the past 13 weeks is 1,059, of which 453 represent applications from ex-officers; the average number of placings per week is 644, of which 274 represent ex-officers. There is thus an excess of applications over placings, but many applicants find employment for themselves or allow their applications to drop. Compared with the figures for the latter half of 1919, there is no appreciable diminution in the number of applications received, but the weekly average of candidates placed in employment has steadily increased—

Is the right hon. Gentleman aware that since I placed this question on the Paper an appeal has been made to the public by Lord Haig for funds for the Officers' Association, and that in that appeal it is stated that there are 25,000 officers who are out of employment; and can he account for the discrepancy between his figure and that given by Lord Haig?

I have no reason to doubt the correctness of the figure of 25,000, but we have only had applications from 12,913. I cordially endorse Lord Haig's appeal on behalf of these men, and I am sure everyone in the House will do the same.

May I ask whether Lord Haig has not already offered to take over, through his Officers' Association, the whole administration of the Appointments Department, and would not that save a certain amount of money to the State?

We propose to go into that matter, with other organisations, as soon as possible. It may very well be that that is a better form of finding employment, and if I come to that conclusion, I shall be very glad to enlist the good offices of anyone.

Can the right hon. Gentleman say what has been the response of employers to the appeals made to them by Members of the House of Commons to find work for these men?

I should like that information. In the meantime I am, as I have said, very much obliged to those Members of this House who have written to firms in their constituencies. If there are any who have not done so, perhaps they will write and ask firms to do what they can to find employment for these men.

Edmonton Training Centre

asked the Secretary of State for War if his attention has been called to the application of the Middlesex Training Council for the use of a portion of the Strand Union Workhouse, Silver Street, Edmonton, as a training centre for disabled men; if he is aware that 399 disabled men are awaiting training in Enfield, Wood Green, and Tottenham, and a further 240 men on the register not yet passed for training, but that nothing can be done while awaiting the necessary accommodation; that it has been stated on behalf of the War Office that the whole, of these premises are required for the military hospital; and that on 26th April these premises were visited by a deputation of Members of Parliament who found upon investigation accommodation absolutely unoccupied capable of affording facilities for training several thousand men; and whether, having regard to the strong feeling that exists and the scandal that has been occasioned, he will take steps to at once have the required accommodation placed at the disposal of those responsible for training these disabled men?

Arrangements have already been made for this institution to be specially inspected on Friday next, when a full Report will be made of the accommodation utilised and required. I will communicate further with the hon. Member as soon as I am in a position to do so.

Royal Engineering Yards (Aldershot Command)

asked the Secretary of State for War whether his attention has been drawn to the number of discharges from the Royal engineering yards and works in the Aldershot Command; whether he is aware that 70 per cent, of these men are ex-service men and that a large number have ten years or more to their service in the Royal Engineer Department; and whether, in view of the amount of distress that is being caused by these dismissals, he will have inquiries made into this matter?

I am making inquiries, and will communicate with the hon. Member as soon as possible.

Out-Of-Work Donation

asked the Minister for Labour how long it is intended to continue the Out-of-Work Donation to both men and women?

The scheme now in operation provides only for payment of donation to ex-service men and women and merchant seamen during the period up to the end of July. In the case, however, of ex-service men and women who were demobilised within 12 months prior to that date, the donation scheme will continue to apply till the expiration of 12 months from the date of their personal demobilisation.

May I ask what the right hon. Gentleman proposes to do in order to bridge the gap between the end of July and the coming into operation of the Unemployment Bill?

That is a matter to which we are bound to give the most careful consideration.

If a man obtains work in the meantime, can he leave that employment and go back to the Bureau and get out-of-work donation again?

A man is not eligible for unemployment donation if he refuses suitable work. As to whether, if he has got work, and there is still an unexpired portion of the unemployment donation, he can go back to it or not, that is a question of which I should like to have notice.

Tuberculous Soldiers

asked the Minister of Health whether he has yet considered the proposal of the Inter-Departmental Committee on Tuberculous Soldiers; and whether he can state which of these suggestions is being adopted?

The answer to the first part of the qusetion is in the affirmative. The capital Grant-in-Aid of the provision of additional sanatorium and hospital accommodation for tuberculosis has been increased to £180 per bed, and considerable extensions of the existing accommodation are being made. Facilities for the training, in suitable occupations, of ex-service men suffering from tuberculosis are in course of being provided at existing sanatoria, at an estimated cost of £250,000; and a scheme for the provision of village settlements for these men and their families has been worked out, and is now under consideration by the Departments concerned.

Housing

Unoccupied Houses

asked the Minister of' Health if he has now had time to consider the desirability of empowering local authorities to require property owners to let for immediate occupation all unoccupied dwelling-houses in their area, seeing that they possess no adequate powers for dealing with this particular case of house shortage in any other way?

Yes, Sir. I hope to submit proposals for dealing with this point shortly.

Building Materials

asked the Minister of Health whether the arrangements for the supply of building materials to local authorities have been abandoned; and, if so, on what ground?

In view of the largely increased demands for building materials which may now be expected, it has been provisionally arranged that, with certain exceptions, materials may be purchased independently of the Director of Building Materials Supply. I am sending the hon. Member a copy of a note which has been sent to local authorities on the subject.

Priority is given in respect of housing. It may be a local authority or a public utility society scheme. I could not answer without notice whether there is any distinction as between them.

Workers Employed

asked the Minister of Health whether he can state the number of building workers of each class engaged on the construction of dwelling houses and on other building work, respectively?

I have only information as to men employed on State-aided housing schemes in progress in England and Wales. The figures for the week ending 14th April show a total of 8,138 skilled men employed on these works, and a total shortage of 8,376 skilled men of the different classes required upon them. I am sending the hon. Member a statement prepared by the Ministry of Labour showing the total numbers of the different classes of building workers in the United Kingdom insured against un- employment. I have no means of knowing upon what work the men not employed on housing are engaged. The grave feature of the situation is that there is a shortage of labour on the housing schemes.

How is it that the right hon. Gentleman's enormous staff is unable to get these very important details?

I could give the numbers of the men employed on housing, and I have done so. It is no part of the duty of my enormous staff to go outside their duties.

Is is not very important that the House should know the number of men employed on other buildings apart from dwelling-houses, in view of the great unrest in the country?

That may be so, but it does not happen to be the business of the Ministry of Health to find out.

The hon. and gallant Gentleman should give notice of that question.

Land Prices, London

asked the Minister of Health if he can state the average price per acre paid for land for housing by local authorities within the Metropolitan area of London and within the boundaries of Greater London?

The average price per acre of land for housing schemes of local authorities where the site and price have been approved by my Department is £495 within the County of London and £304 for the rest of the Metropolitan Police District.

Can the right hon. Gentleman give any idea what part of cost per house would be due to the excessive price of the land?

We have obtained land cheaper for housing than it was obtained for other purposes in the last pre-War year.

I will gladly give the information if the hon. Member will put a question down.

Would it be far wrong if I asked the right hon. Gentleman whether he estimated it at £2 per annum?

Is the right hon. Gentleman aware that the local authorities at Tottenham recently bought several acres of land—

Obviously the right hon. Gentleman could not answer that question without notice.

Government Subsidies

asked the Minister of Health how many districts in this country have hitherto suspended building operations on the ground that the Government's financial assistance is inadequate?

I do not know of any cases in which local authorities have suspended building operations on the ground that the Government's financial assistance is inadequate. In some cases authorities over £200,000 rateable value have been unable to enter into building contracts owing to difficulty in raising the necessary loans or have entered into contracts for only a part of what they require, and these cases are now being specially considered.

Rent Restriction Bill

asked the Minister of Health what steps he has taken, if any, to deal with the increased cost of houses, the rise in prices of let ting, leasing, and selling, and the custom of premiums; and whether he will see his way to take action immediately under the provisions of the Profiteering Act?

The administration of the Profiteering Act falls within the province of the Board of Trade and not of my Department, but the letting of houses and the custom of premiums will be dealt with in the Bill for amending the Bent Restriction Acts which I hope to introduce shortly.

Local Authorities (Borrowing)

asked the Minister of Health whether local authorities whose rateable value is under £200,000 and who borrow through the Public Works Loans Board for the purposes of the housing scheme are compelled to mortgage the whole of their common fund while their liability is limited to the produce of a penny rate and thus mortgage more than their actual assets under the housing scheme; and how does he justify their position in doing this?

Housing Loans to local authorities are made on the general security of the rates, and this is the security prescribed by the Act authorising the borrowing. Against their liability the local authorities will receive the subsidy authorised by the Housing Act, 1919.

Are not local authorities mortgaging more than their actual assets are under the housing scheme? I take it their assets only amount to a penny rate, whereas they are being compelled to mortgage the whole of their receipts.

Business Premises

asked the Minister of Health whether he is aware that licence-holders, amongst others, are being given notice to leave their premises on the 28th May, and that the renewal certificates of licences are being refused, on account of the termination of the vacancies, thus throwing upon the tenants the onus of appealing to the Licence Appeal Court; and whether, in view of the fact that this Appeal Court will be held very shortly, he can state whether the Government propose to give protection to tenants of commercial premises in the forthcoming Bill to amend the Bent Restriction Acts?

I am not at present in a position to make any statement on this subject.

When will the right hon. Gentleman be in a position to make a statement?

There is no lack of sympathy, but the subject is very complicated. We shall produce the proposals as soon as we possibly can.

Building Materials (Sales)

asked the Prime Minister whether his attention has been called to the extensive sales of building materials advertised by the Ministry of Munitions (Surplus Government Property Disposal Board) to take place during this month; and whether it is the policy of the Government to dispose of building materials to any purchaser, without regard to the needs of local authorities or to the fact that the ratepayers and taxpayers will have to pay exorbitant prices for these materials at a later time?

I have been asked to answer this question. The sales of second-hand building materials advertised to take place during this month are quite unimportant, as there are only small quantities of building materials available for disposal. In all cases the auctioneers are instructed to forward copies of catalogues to all local authorities within a radius of 50 miles from the place of sale.

Maternity and Child Welfare

asked the Minister of Health if he is aware that many municipal authorities find it impossible to develop the work of maternity and child welfare as it ought to be developed because of the heavy financial burden it entails; and, under such circumstances, can he make any recommendations to the Government for financial assistance to carry out a national obligation, and from which the State will benefit thereby?

The Government already distribute through my Department a grant of half the expenditure of local authorities and voluntary agencies on maternity and child welfare.

Blind Basket and Chair Makers

asked the Minister of Health if he will facilitate the provi- sion of willow and cane to enable the blind basket and chair makers to carry on their work?

I am not aware that any material difficulty is experienced by workshops for the blind in obtaining supplies of willow and cane. In the case of blind persons working in their own homes as basket or chair makers, such difficulty does arise and every effort is being made to have such persons attached to a workshop or other agency which will supply the materials, supervise the work, and market the finished articles. Grant is payable by the Ministry of Health in respect of each such person included in an approved scheme of assistance and such schemes are being rapidly developed.

Public Vaccinators

asked the Minister of Health whether there are at present any whole-time public vaccinators in England and Wales; if so, in which unions are they to be found; how much salary is paid to each of them; and how many vaccinations were performed by them during the last year for which the figures are available?

The answer to the first part of the question is in the negative, and the other parts do not therefore arise.

Juvenile Employment Committees

asked the Minister of Labour if he can state the constitution of local juvenile employment committees; whether he has received any complaints from Lincoln regarding inadequate representation of trade unions; and, if so, whether he will give these complaints consideration and take whatever steps are necessary to facilitate consideration of the apprenticeship scheme?

The constitution of Juvenile Employment Committees appointed by the Ministry of Labour is laid down in the special rules made under the general regulations for Employment Exchanges. The Committees are composed of persons possessing experience of education and of other conditions affecting boys and girls, together with representatives of employers and workpeople. The constitution of the Lincoln Juvenile Employment Committee was approved by the Lincoln Local Employment Committee, half the membership of which is composed of representatives of trade unions, and I am advised that no complaints have been received. The Committee are, at the suggestion of the Department, actively inquiring into the general question of apprenticeship, and all the necessary steps are being taken to facilitate their work in this connection. I ought to say generally that the whole question of the constitution and function of these Local Committees, and their relationship to the Central Departments concerned, the Board of Education and the Labour Ministry, is now engaging my attention

Russia

Embassy, London

asked the Under-Secretary of State for Foreign Affairs whether the late Russian Embassy in Chesham Place is now occupied and for what purpose?

There is nothing to add to the reply given to the hon. and gallant Member on the 25th March.

Anti-Bolshevik Forces

asked the Prime Minister whether money, munitions, or stores are still being supplied to Count Wrangel's army or to any other anti-Bolshevik Russian force; and, if so, why this is being continued after 31st March, 1920, in view of the declarations in Parliament on behalf of His Majesty's Government that such assistance would cease on that date?

The only stores and munitions being supplied to General Wrangel are those which had been sent out for General Denikin's use, but which had not been actually delivered to him. No other stores and no money are being issued to any Russian anti-Bolshevik force.

Is that in accordance with the statement of the Prime Minister that this assistance would cease on the 31st March? lutely in accordance with that statement. I think it was explained in the House more than once that a definite amount had been agreed to be sent. This is being sent, and nothing more.

Why are we sending these munitions to General Wrangel at the same time that we are negotiating with the Soviet Government for his surrender?

We are not sending them. We are only delivering those that are on the way.

Is it a fact that the British Navy is co-operating with General Wrangel?

I think the House should, as far as possible, understand the position. The British Government entered into communication with the Soviet Government, in order to save the lives of the remnants of General Denikin's force. In pursuance of these negotiations, if I may call them so, intimation has been given that if, while they were proceeding, General Wrangel's force were attacked, we would then use the British fleet to defend them. So far as I know no action has taken place.

Are we making ourselves responsible that General Wrangel does not attack in his turn?

If I may say so, the hon. Member is not helping anybody by that kind of remark.

That is quite a fair retort; but I am entitled to express my opinion. The object of our action is to save the lives of these people, that is all.

British Army

Deceased Soldiers, Ypres

asked the Secretary for War if the bodies of 40 British soldiers have been discovered in a cellar at Ypres during the work of clearing the ruins; whether in that case they have been identified; and when he proposes to publish the names.

I am informed that bodies are continually being found in the ruins of Ypres, where organised search is now being made. It is possible that the number of bodies stated have been located in one cellar, but very careful investigation, entailing reference to records in this country, is necessary before it would be possible to make any statement as to the identity of individuals. As soon as their identity has been established, the next-of-kin are, of course, notified.

Territorial Force (Special Medal)

asked the Secretary for War whether the grant of the special medal for Territorials who were not eligible for the 1914–15 Star will be allowed (under the same conditions as it is granted to Territorials) to those Regular officers who were debarred from gaining the 1914–15 Star by reason of their serving on the staff of, or as adjutants of, the Territorial Force, especially as the numbers involved would be small, and the grant of the medal would be much appreciated by those officers as a recognition of the fact that the efficiency of the Territorial Force was largely due to their good work before and during the War.

The award of this medal is confined to Territorials, and I regret I cannot adopt the hon. Member's suggestion.

Troops in Egypt (Hospital Transport)

asked the Secretary for War whether he is aware that a number of officers and men medically boarded for transfer to the United Kingdom after several years' service abroad are being retained in Egypt because no hospital ship is available to transport them, and that owing to the hot weather prevailing in Egypt at the present time their health is suffering and some of them may die in consequence of the delay; whether, while means cannot be found to transport our British sick to the United Kingdom, a hospital ship is being used to repatriate Turkish prisoners from Egypt to Turkey, and other hospital ships to transport Russian refugees; and whether he will see that priority is given to our men suffering from the climate, and that arrangements are made for their immediate removal?

No invalids have been held back in Egypt owing to a hospital ship not being available. A hospital ship is allotted permanently for the evacuation to the United Kingdom of invalids from the Mediterranean garrisons and is despatched to the United Kingdom whenever the number of invalids warrant a sailing. This ship has been used for the conveyance of sick Turkish prisoners of war from Egypt to Turkey between its voyages to the United Kingdom, but I am advised that it has only been employed in this manner when the number of British invalids for transportation to the United Kingdom did not warrant its immediate return to the United Kingdom, and that its use on this service has in no way delayed the evacuation of British invalids.

Is the right hon. Gentleman aware that at present there are men urgently waiting to come home, and will he give orders for a ship to bring these men home at once?

I do not think that can be possible. Ships can only bring them home when there are enough men to form a ship load. We cannot send a ship for 20 or 30 men.

Does the right hon. Gentleman mean that men who have served four or five years should be left out there to die rather than bring them back home?

No, Sir. That would be quite an incorrect representation of the case. A ship is sent whenever there are enough men to bring home. The intervals are not so long as the hon. Member suggests.

Is the right hon. Gentleman aware that there are a very large number of passengers who are coming home on these ships now who could be taken off and these invalids put on board? Is he aware that men out in Egypt who have been ordered to be sent home two or three years ago, have not yet been sent home?

I am not aware that passengers are brought in hospital ships. I think the hospital ships are confined to hospital purposes. If the suggestion is that that is not so, I will inquire into the matter.

Will the right hon. Gentleman inquire into the cases of the men who are out there now?

Committee of Imperial Defence

asked the Prime Minister if the Imperial Defence Committee is now in being; how is it constituted; whether it has held any meetings as such since the Armistice; whether it is proposed to hold any meetings in the near future; and whether the composition of the post-war Fleet, Army, and Air Force will be, or have been, considered by the Committee?

The answer to the first part of the question is in the affirmative; the Committee is composed of such Members as the Prime Minister decides to invite, according to the subjects to be discussed; the first meeting of the Committee since the Armistice had to be postponed owing to the Prime Minister's indisposition, but it is hoped to hold one shortly; as to the latter part of the question, I would refer my hon. and gallant Friend to my reply to a similar question on the 11th March.

League of Nations

Financial Conference, Brussels

asked whether the League of Nations, on the invitation of the Allies, has summoned a financial conference to sit at Brussels: when the conference is expected to meet; who will be the British representatives; and whether the findings of the conference wll be made available for the consideration of the Supreme Council at Spa?

The Financial Conference summoned by the League of Nations will, I understand, meet in Brussels about the end of May or beginning of June. The British Government has invited Lord Chalmers, Lord Cullen and Mr. Henry Bell to act as British delegates, and I am glad to be able to announce that these Gentlemen have agreed to serve. As at present proposed, the Spa Conference will precede the Brussels Conference.

Mandates

asked the Lord Privy Seal if the mandates recently entrusted to certain Allied Governments are to be submitted for endorsement to the forthcoming meeting of the Council of the League of Nations; if conditions of an economic character have been embodied as a condition of such mandate; and, in that event, if such conditions include provisions for an open door for trade?

The instruments defining the terms of these mandates are not yet complete, so that I can at present give no information as to what particular conditions are embodied therein, or as to the date upon which they will be submitted to the Council of the League of Nations.

They cannot go before the League of Nations until the mandates have been settled.

What is the policy of the Government? Is it to maintain the law in the mandated territories?

If the hon. Gentleman would read the discussions on the subject, he would obtain the information. He can hardly expect me to define the policy of the Government in answer to a question.

Poland

Marshal Pilsudski

asked the Prime Minister whether any telegram has been sent to Marshal Pilsudski congratulating him on his recent military successes or on any other grounds?

asked the Lord Privy Seal if he will say on the advice of which Minister a telegram of congratulation was recently sent to Marshal Pilsudski; and does the Government accept responsibility for this message of encouragement to the Poles?

No telegram of congratulation was sent to Marshal Pilsudski on his recent military successes. Several days before the offensive began, a telegram was prepared for despatch on the Polish National Fete Day conveying the congratulations of the King and his people. That telegram had no connection whatever with the Polish advance into Russia.

Certainly. My hon. Friend, I think, does not realise that at that time, at all events, there was no question of this War. So far as we are concerned, and surely there is nothing more natural than that we should send congratulations on the National Fete Day.

Is it not a fact that the hon. Member for Central Hull (Lieut. -Commander Kenworthy) sent a telegram to Lenin and Trotsky consoling with them on their defeat?

Arising out of the right hon. Gentleman's very important answer to my question, are we to understand that His Majesty's Government had no warning whatever of the Polish offensive when this telegram was sent? Was no warning given?

I do not know whether we should be called upon to answer a question of that kind, but I am ready to answer it. So far as the British Government were aware, they had no information that this offensive was to take place.

Is the right hon. Gentleman aware that Poland had announced that they would enter Kieff on the same day that the telegram was to be sent?

I beg to give notice that I shall raise this matter on the Motion for the Adjournment to-morrow, in order to give the right hon. Gentleman a further opportunity of explaining the position.

Soviet Government

asked the Lord Privy Seal if he can give an assurance that the Government are in no way responsible for the attack of Polish or Ukrainian forces upon those of the Soviet Government of Russia, and that this country is in no way bound to help in such attack nor are in any way helping it?

Has the attention of the right hon. Gentleman been called to the fact that some dispute has arisen in the East End of London in reference to a cargo of munitions of war that is being shipped to Poland, and does he think that that is morally consistent with the neutrality of this country?

I would like notice of that. I did see something about it in the papers, but I do not know the facts.

Germany

Reparation Proposals

asked the sum the British Government proposes that Ger many should be asked to pay in the shape of an indemnity; and if such an amount has been agreed to by the Allies?

His Majesty's Government has formulated no proposals in regard to reparation yet, but intends only to carry out the arrangements set forth in the Allied reply to the German Government on 16th June, 1919.

Coloured Troops

asked if any re presentations have been made to the French Government on behalf of the British Government for the removal of coloured troops from the territory now occupied by the Allies in Germany?

Agriculture

Government Bill

asked the Prime Minister if he is aware of the very great uneasiness that prevails among the agricultural community owing to the de- lay in introducing the long promised Agricultural Bill; whether, in order to allay this anxiety, he can make some statement as to when the Bill will be introduced; and whether it is the intention of the Government to pass it during the present Session?

As regards the first part of the question, I can add nothing to the answers which I have already given; the answer to the last part of the question is in the affirmative.

Now that considerable time, possibly a month, will be saved over the Home Rule Bill, will the Government bring forward this Bill at an early date?

As I have mentioned to the House already there is no question whatever of the Government not carrying the Bill this Session. We will bring it forward as early as possible.

Farms (County Committees)

asked the Parliamentary Secretary to the Ministry of Agriculture whether there are available costing statements and balance sheets of the working of the farms which make up the 35,000 acres of land in the possession of the Ministry of Agriculture, and which are being cultivated directly or indirectly by the executive committees of the various county councils; and, if so, are these accounts published in a way to arrest the attention of farmers in each locality, so that they may judge of the Value of this effort as a guide to those whose business it is to farm for a profit without the aid of State funds?

The Ministry has in its possession balance sheets showing the financial position with regard to all the farms entered upon by Agricultural Executive Committees and cultivated by those committees on behalf of the Ministry. It is not considered that there would be any advantage in publishing these accounts or that farmers would be able to draw any reliable conclusions from the figures. The business of the Agricultural Executive Committees is not to show how farms can be worked for profit, but to endeavour to remedy some of the results of long-continued neglect. In many cases this involves heavy outlay before any return appears.

No. I do not say that, but they are not the least difficult farms to work. They are farms which have been neglected for many years.

Do the committees grow very little wheat because they do not want to show a loss?

I have no information on that. I will inquire if the hon. Members puts down a question.

Stored-Up Fertility

asked the Parliamentary Secretary to the Ministry of Agriculture if he has consulted the Law Officers to the Crown upon the following question, that is to say, whether the tenant of an agricultural holding whose contract of tenancy contains no specific provision dealing with stored-up fertility would be protected by Section 2 of the Courts (Emergency) Powers Act, 1917, in the event of his landlord making a claim at the termination of the tenancy, for the value of the stored-up fertility taken out of the land by reason of pasture having been broken up under compulsory directions issued under the Defence of the Realm Regulations?

The Law Officers have not been asked to advise on this question. If a landlord claims that a tenant is liable for breaking up pasture in compliance with an Order issued under the Defence of the Realm Regulations, notwithstanding the enactment referred to in the question, the validity of the claim will have to be decided by the Courts.

Unemployment Insurance Bill

asked the Lord Privy Seal whether the Government have yet decided whether they will leave the Clause dealing with friendly societies in the Unemployment Insurance Bill to the free Vote of the House?

I think it better that the usual course in such cases should be adopted, and that the action proposed by the Government should be announced when the Bill comes before the House.

Is the right hon. Gentleman aware that all the great friendly societies in the country without exception are anxious and prepared to work unemployment benefit?

That is the very reason, I think, why the course we propose to take should be stated when we can discuss it.

Egypt (Lord Milner's Report)

asked whether, having regard to the necessity for an instructed public opinion on the present situation in Egypt and the attitude of the Government towards the demands of the Nationalists, Lord Milner's Report may be presented to Parliament at the earliest possible moment?

The Report has not yet been received by His Majesty's Government. Lord Milner and his colleagues are, however, fully alive to the importance of the considerations urged in the question of the hon. Member, and can be relied upon to formulate their conclusions without any avoidable delay.

Transport

Cheap Travelling Facilities

asked the Minister of Transport whether any decision has yet been reached of granting cheap travelling facilities in view of the approaching Whitsun and summer-time holidays?

I would refer the hon. Member to the reply given to the hon. Member for Lincoln on the 3rd instant, when my right hon. Friend the Minister of Transport stated that he could hold out little hope of the restoration of holiday excursions at reduced fares this summer, and I fear that it is not possible to grant such facilities at Whitsuntide

Sugar Freightage, West of England

asked the Minister of Transport whether he has received representations from the Radstock Co-operative and Industrial Society, Limited, calling his attention to the fact that sugar for the West of England is being sent to Radstock from Liverpool, resulting in delay and extra cost in freightage; and why this arrangement persists when the Bristol ports near at hand deal so largely with sugar?

The answer to the first part of the question is in the negative. I am, however, communicating with my right hon. Friend, the Minister of Food, on the subject, and have asked him to let the hon. Member know the result.

Post Office

Assistant's Dismissal (South Shields)

asked the Post master-General whether he is aware that trouble is likely to arise over the dismissal of an assistant at South Frederick Street Sub-office, South Shields: whether the fact that this assistant has served in the same office for three years without any fault being found with her work and that she has been left in charge of the Post Office business on several occasions disproves the inefficiency alleged; whether, on the day of dismissal, her accounts were balanced and found correct, and that an application made to the address given by her late employers for a reference has been ignored; whether the recruiting of sub-office assistants is likely to stop owing to the case being regarded as one of victimisation, seeing the discharge followed soon after the daughter of the sub-postmistress, who manages the Post Office work, tried to persuade the assistant not to join the U.P.W.; and whether he will say what action he proposes to take in the matter?

The dismissal of scale payment sub-office assistants and the treatment of applications for references in respect of them are matters within the discretion of sub-postmasters; but I am informed that the dismissal of the assistant referred to was due to her inefficiency, disregard of instructions, and resentment of control.

Girl Telegraph Messengers

asked the Post master-General whether he is aware that girl telegraph messengers are at a serious disadvantage as compared with boy messengers, in so far as each boy is given a complete set of class books needed for his attendance at continuation school, whilst the girls are given none; that the fares to school are paid for the boys, but not for the girls; that gaiters are pro vided for the boys, but the girls have to buy their own; and that there is a social institute at the messengers' office for boys, where they can go in their off-time, but none for the girls; and whether he will provide the same facilities for the girl messengers as he provides for the boys, both as regards their present welfare and their preparation for adult life?

The employment of girl messengers for telegraph delivery was adopted as a temporary war measure, and they are being gradually replaced by boys. It has not been practicable to set up a scheme of compulsory class attendance for the girl messengers on the lines of that in force for the boys. The girls are encouraged to attend classes of their own choice formed by the education authorities; the classes chosen are in varying subjects, and it has not been possible to supply them with the various books required. They have been allowed to partake, as far as practicable, in the institute facilities for the boys; but the question of accommodation would prevent the provision of institutes specially for the girls. Gaiters are supplied to all girl messengers employed on cycling and rural duties, and in town areas where considered to be warranted.

Letter Delivery, Edinburgh

asked the Post master-General whether the morning de livery of London and other southern letters in Edinburgh has been altered from 8 a.m. to 10.30 a.m. and later; whether he is aware that this change, which means that in many cases letters are not delivered till after midday in many of the business quarters of the city, has led to great inconvenience, especially in connection with friendly society work; and whether, in view of the fact that such letters were delivered first post during the War and that there is no change in the railway arrangements, he will at once take steps to revert to the former practice?

Until recently endeavour was made to include the London letters in the first delivery. This endeavour led to the delivery being frequently late, and when the main trains ran appreciably behind time the inclusion of the London letters became impossible. Numerous complaints of the consequent lateness of the first delivery were made by those interested in Scotch and local letters, and it was therefore decided to fix an earlier and regular delivery for this correspondence and to deliver the London letters between 10 and 11. There is no doubt a conflict of interest between the recipients of local and London letters respectively, and I am considering whether any means can be found of reconciling it.

Ex-Enemy Merchant Ships

asked the Parliamentary Secretary to the Shipping Controller what is the number of ex-enemy merchant ships captured and condemned as prize; what has been done with these ships; and what is the amount realised by the Government from the sale or running of these ships?

Excluding ships captured by joint British and Allied Forces, ships condemned as to part only of their interest, and numerous miscellaneous small craft, the total number of ex-enemy merchant vessels of over 500 tons gross which have been condemned up to the present in British Prize Courts is 98. With the exception of ships retained by Overseas Governments, these have been run on British Government account, at first by the Overseas Prize Disposal Committee and subsequently by the Ministry of Shipping. The amount realised from the sale of 15 of these vessels is £1,503,940. I am having a separate account of the trading results of these vessels prepared, but it is not yet available.

Coal Production

Dublin Supplies

asked the Parliamentary Secretary to the Shipping Con- troller whether he is aware that the question of the coal supply in Dublin has become acute again; and whether he is now in a position to release enough shipping to meet the reasonable Irish demand.

I have no special information as to present position in Dublin, but the latest available figures show a distinct improvement in the amount of coal going to Ireland. There is ample shipping for the carriage of coal to all parts of the United Kingdom if it is chartered in the open market in the ordinary way, and it is not necessary to direct ships into any particular portion of that trade.

Industrial and Household Coal (Increased Prices)

( by Private Notice ) asked the President of the Board of Trade whether, in view of the hardships which will be caused by the proposed increase in the price of household coal, any consultations were held with the Coal Owners or the Miners' Representatives, with a view to devising any possible means for avoiding an increase in the price, and if not, whether he will suspend the increase pending consultation with the Coal Owners and Miners' Representatives?

In taking the decision to place the price of coal on an economic basis the Government were alive to all the considerations involved; and apart from questions of policy, practical and administrative considerations make it necessary to terminate the differentiation between household and industrial coal. The Departmental Advisory Committee of Owners' and Men's Representatives which it has been the desire of the Government to re-establish has not, for reasons over which I have no control, yet been reconstituted. The proposed increase is a matter on which the Committee would certainly have been consulted, as I fully recognise the desirability of acting in the closest touch with those most interested in carrying on the industry. I shall, however, make a further effort to have the Committee reconstituted forthwith. So far as the question of suspension is concerned, I am afraid that cannot be done.

In face of the answer which the right hon. Gentleman has given, I beg to ask leave to move the Adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely, "the failure of His Majesty's Government to differentiate between householders and manufacturers in the proposed increase in the price of coal."

The pleasure of the House having been signified, the Motion stood over, under Standing Order No. 10, until a Quarter past Eight this evening.

Royal Gunpowder Factory, Gretna

asked the Parliamentary Secretary to the Ministry of Munitions what is the estimated cost of the removal of the necessary machinery from the Royal Gunpowder Factory to Gretna, the instalment of this machinery at Gretna, and the necessary alterations of buildings to receive this machinery?

The question as to what machinery is to be transferred from the Royal Gunpowder Factory, Waltham Abbey, to His Majesty's Factory, Gretna, is necessarily dependent on the settlement of the future programme of manufacture to be undertaken at Gretna, and this matter will now fall to be considered by the Secretary of State for War.

Afforestation

asked the hon. Member for Monmouth, as Parliamentary Forestry Commissioner, to what extent the work of afforestation has been increased during the last 12 months; what is the number of acres and where situated, and where this work is in progress; what is the number of men employed, and how many demobililsed service men have been taken on during the last 18 months; what is the rate of wages paid, and the hours worked; and what prospect there is,' if any, of any considerable extension of such planting?

I refer to my reply on 28th April last to the question (No. 93) of the hon. Member for Dart-ford, as to the extent of the increase in the work of afforestation since the Forestry Commissioners were appointed, and as to the number of acres planted. Planting has been carried out in the counties of Bedford, Northampton, Devon, Suffolk, Cumberland, Sutherland, Inverness, Aberdeen, Forfar, Cavan, Clare, Cork, Fermanagh, Galway, Londonderry, Queens, Tipperary, Tyrone, Wicklow and Wexford, but the season for planting is now closing. The number employed during April averaged 385. The Commission have kept no record of the number of men employed during the last eighteen months with previous war service, and it would not now be possible to obtain the information asked for. The hours worked are those of agricultural labour in the district, and the rate of wages generally slightly more than the minimum agricultural rate. The rate of planting in future seasons will not be less than that suggested in Appendix 8, Paragraph 1, of the Final Report of the Forestry Sub-Committee of the Reconstruction Committee (Cd. 8881), but, as explained in the answer to which I have referred, it is limited both by the funds at the Commission's disposal and by the stocks of seedlings likely to be available for planting out during the next few years.

The answer, which is in detail, had, I think, better be read first.

Steel Plates

asked the President of the Board of Trade what steps he proposes to take to enable the locomotive works in Scotland to secure an adequate supply of steel plates; and, in respect that 8,000 workers in Glasgow are being put on short time for the want of steel plates, will he act with the utmost despatch?

The shortage of steel plates is not only affecting the locomotive works in Scotland, but other industries, and is due in part to a serious shortage in the output of pig-iron and in part to difficulties of transport. My right hon. Friend has been in communication with the National Federation of Iron and Steel Manufacturers on the subject, and has received an assurance that every effort will be made by the steel makers to maintain supplies to all consumers, and he is also in communication with the Ministry of Transport on the subject.

Will the right hon. Gentleman secure that there is a complete embargo put on the exports of steel plates, inasmuch as manufactured steel in locomotives, motors, and other things is worth at least thirty to one of the unmanufactured plates and gives greater employment and also helps the exchange?

Exports and Imports

asked the President of the Board of Trade whether there- is any precedent for exercising a prerogative to control exports save in the time of War?

I am not aware of any recent precedent for these prohibitions, which have, however, been imposed under the power conferred on the Crown by Section 8 of the Customs and Inland Revenue Act, 1879, which is not limited to time of war.

asked the President of the Board of Trade on what principle he decides between rival claimants who desire to export the same article; whether exports are forbidden to any countries, and, if so, to which; and whether any Report is made to Parliament as to the manner in which the prerogative has been exercised to control the export of goods?

In answer to the first part of the question, the general rule is that, where the export of a limited quantity of a commodity is permitted, licences are granted on the basis either of a percentage of the quantity in respect of which applications for licences are made or of a ration depending on the applicants' normal exports of the commodity in question. The only country to which exports are forbidden is European Russia, as to which I would refer the hon. and gallant Member to the answer which I gave to him yesterday. The answer to the last part of the question is in the negative.

Would the hon. Gentleman say how he reconciles the answer he has given with repeated statements by the Government that there is no blockade of Russia?

asked the President of the Board of Trade whether he can state the exports and imports for the first four months of the present year on the basis of the values of 1913?

A revaluation of the amounts shown in the accounts relating to trade and navigation of the United Kingdom on the basis of the values current in 1913 is made quarterly, pressure of current work not permitting such estimates to be made more frequently. The revaluation for the first quarter of this year was published in considerable detail in the Board of Trade Journal for 22nd and 29th April, copies of which I am sending to the hon. Member. The principal totals are as follows:—

1920 First Quarter.

1913, First Quarter.

Declared Values

On 1913 Values

Declared Values.

£

£

£

Imports

530,572,000

187,773,000

196,279,000

Exports, British

295,543,000

93,853,000

127,310,000

Foreign and

75,100,000

34,185,000

31,084,000

Colonial.

Living (Cost)

asked the President of the Board of Trade whether he can state the effect of the prospective rise in the prices of coal and bread on the index figures of the cost of living?

I have been asked to reply to this question. It is estimated that the increase of 14s. 2d. per ton in the price of coal for domestic purposes will raise the Ministry of Labour retail prices index number by between 3½ and 4 points. No official announcement has been made of any prospective change in the price of bread, but a movement of one penny per 4 lbs. of bread would alter the index figure by about 1½ points.

Would the right hon. Gentleman say why it is that coal goes up and down in prices like the weather-glass; first up 6s., then down 10s., and then up again 14s.?

Ireland

Murders of Policemen

( by Private Notice ) asked the Attorney-General for Ireland whether he could inform the House or give the House any further information with respect to the unprovoked and brutal murder of police in Cork, as reported in that morning's papers, and what steps the Government were taking to support the police with military?

I can add very little to the statement in the Press. A sergeant of the name of Garvey and Constables Harrington and Doyle were going on night duty in Cork last night at 10.45, when they went to board a passing tramcar they were fired on by a number of men armed with revolvers. Some of the assailants were within two or three feet of the victims. The sergeant and Constable Harrington were killed at once. Constable Doyle, though suffering badly from wounds in the head and shoulder, was able to stagger across the road to his barracks. As regards the last part of the question, I communicated last week, in consequence of a question of my hon. and gallant Friend, with the County Inspector of Cork and was informed by him that he had an adequate force of police to deal with anything that might arise.

In view of the fact that these murders are nearly always done with revolvers or shot-guns, have the authorities considered the possibility of supplying body armour to the police while in the execution of their duty?

Yes, that has been considered, and in one case last week in Dublin a constable was actually wearing body armour, but unfortunately he had on only a front plate and was shot in the back.

May I ask the Leader of the House whether General Macready, since he went to Ireland, has taken any steps to ensure greater co-ordination and co-operation between the police and military, and, if so, how soon does he expect that those steps will be effective; if not, how much longer does he expect the Royal Irish Constabulary to go on, unless proper measures of protection are given to them?

I am glad there is an opportunity of answering that. General Macready has already taken most important steps, and yesterday, in consultation with a Conference of the Cabinet, he had many other suggestions to make, all of which will be granted by the Cabinet. He does believe that in a comparatively short time the changes he has made will show effect. As to the last part of the question, I can only say again that the Government will take any action which in their belief will tend to restore decent conditions in Ireland.

May I ask the right hon. Gentleman, as two or three or four policemen are killed every day, how long he thinks it will be before the whole of the police are killed?

I can quite understand the spirit of that question, but I would remind the House that on previous occasions in Ireland when there was the same kind of disorder a long time elapsed before decent conditions were restored. We are certainly doing all we can, and, as I have said before, if we fail, clearly someone else must take our place.

May I ask whether this disorder did not begin as long ago as January of last year?

I can really add nothing to the answer I have given. It is very easy to say cure all these evils, but we are doing what we can.

May I ask whether the two men identified yesterday have yet been arrested?

I cannot give my hon. Friend the information now, but as soon as I can I will let him know.

May I ask will he be prepared to organise a battalion of Members of this House to go over to Ireland?

May I ask the Leader of the House if he does not think the time has come to put Ireland under martial law?

Eastern Europe (Military Operations)

( by Private Notice ) asked the Leader of the House whether the Government will, before the adjournment for the Whitsuntide, make a statement on the situation arising out of Polish military activities and provide facilities for discussion?

The Government will have no objection whatever to a discussion of the kind taking place, but it is quite impossible for us to find time for it if we are to adjourn (for Whitsuntide) at the time stated, and, as the right hon. Gentleman knows, it can be raised on the Adjournment.

Business of the House

May I ask the Leader of the House if there is any change in the business arranged for tomorrow?

After consultation with my Noble Friend the Joint Parliamentary Secretary (Lord E. Talbot), I have reluctantly come to the conclusion that we must change the business for to-morrow if the Bills which have to be passed before Whitsuntide are to reach the other place in time.

We propose, therefore, to take the Profiteering (Amendment) Bill, the National Health Insurance Bill and the Ejection (Suspensory Provisions) (Scotland) Bill; and in regard to the last mentioned, I would like to explain that the Government gave what was a promise that the recommendations of the Committee about rent restrictions would be carried into effect. The Scottish term terminates on the 28th May, and unless this Bill be carried we shall not be able to carry out the pledge we gave.

Can the right hon. Gentleman say when the Government will put down their Amendments to the Government of Ireland Bill, in accordance with the suggestion made by the First Lord of the Admiralty in Debate?

I do not think my right hon. Friend gave any promise to put down Amendments. We shall put them down as soon as we can.

I understand that the Government of Ireland Bill is not to be taken to-morrow, and can the right hon. Gentleman indicate when it is going to be taken, as some of us are very interested and want to make arrangements?

It certainly would be very undesirable to have it on any day of which notice had not been given. We hope to be able to take it on two days next week, which I shall state definitely to-morrow.

Is it proposed to put the Scottish Suspensory Bill through all its stages to-morrow?

We should like to do that, and it certainly must be carried at once if it is to have any effect.

In view of the importance of this matter, may I ask whether the Suspensory Bill will apply to all classes of Scottish property, I mean business premises as well as house property.

Oh, no; my hon. Friend will realise that a Bill of that kind could not possibly be carried in this way. The only hope of getting this Bill through is because it is merely a Suspensory Bill to carry out the promise made.

Does the right hon. Gentleman not think that suspension is as urgently needed for business property in Scotland as it is in the case of house property?

I realise quite the difficulty in connection with business premises, but a promise was given that the recommendations of the Committee would be put in a Bill in time to be effective. If that promise is to be carried out it must be done now, and we cannot deal with the other matter.

Is the right hon. Gentleman aware that a great number of people in a small way of business are under notice of ejectment for the 28th May, and, unless protection is given under this Bill, those people will be put out in the street?

The answer I have given applies also to that case. I quite realise the importance of this, but it is impossible before the Adjournment to carry a Bill of that kind.

Can the right hon. Gentleman state when the Committee stage of the Finance Bill will be taken?

Bill Presented

Ejection (Suspensory Provisions) (Scotland) Bill,

"to make temporary provision for restricting the granting of orders for recovery of possession of, or the ejection of tenants from, certain dwelling-houses in Scotland," presented by Mr. MUNRO; supported by Mr. Morison; to be read a second time To-morrow, and to be printed. [Bill 113.]

Profiteering (Amendment) Bill,

Reported, with Amendments, from Standing Committee A.

Report to lie upon the Table, and to be printed. [No. 101.]

Minutes of the Proceedings of the Standing Committee to be printed. [No. 101.]

Bill, as amended (in the Standing Committee), to be taken into consideration To-morrow, and to be printed. [Bill 112.]

Invergordon Harbour (Transfer) Bill,

Ordered, That the Examiners of Petitions for Private Bills do examine the Invergordon Harbour (Transfer) Bill, with respect to compliance with the Standing Orders relative to Private Bills.

Message from the Lords

That they have agreed to,

Local Government (Ireland) Provisional Orders (No. 1) Bill, without Amendment.

That they have passed a Bill, intituled, "An Act to authorise the Urban District Council of Newtownards to borrow further money for their gas and water undertakings; to make further provision with respect to the supply of gas and water and for the improvement and local government of the district; and for other purposes." [Newtownards Urban District Council Bill [ Lords. ]

And also, a Bill, intituled, "An Act to extend the boundaries of the city and royal burgh of Edinburgh and the county of the city of Edinburgh; to extend the city parish of Edinburgh; to transfer to and vest in the Corporation of the extended city the undertakings of the Edinburgh and District Water Trustees, the Edinburgh and Leith Corporations Gas Commissioners, and the Water of Leith Purification and Sewerage Commissioners; to extend the limits of compulsory water supply and the limits of gas supply; to construct tramways and works: to provide and work motor omnibuses within the extended city; to acquire lands; to authorise the Corporation to make bye-laws as to aviation; to expend the time for the purchase of lands and completion of authorised works; to borrow money; to lend money to the Commissioners for the harbour and docks of Leith; to amend and extend the Edinburgh municipal and police and other Acts; and for other purposes." [Edinburgh Boundaries Extension and Tramways Bill [ Lords. ]

Newtownards Urban District Council Bill [ Lords ],

Edinburgh Boundaries Extension and Tramways Bill [ Lords ],

Read the First time: and referred to the Examiners of Petitions for Private Bills.

Standing Orders,

Resolutions reported from the Select Committee;

1. "That, in the case of the Sheffield Corporation Bill, Petition for addi-

.2. "That, in the case of the Liverpool Copper Wharf Company (Delivery Warrants) [ Lords ], Petition for Bill, the Standing Orders ought to be dispensed with:—That the parties be permitted to proceed with their Bill."

3. "That, in the case of the Uxbridge and Wycombe District Gas [ Lords ], Petition for Bill, the Standing Orders ought to be dispensed with:—That the parties be permitted to proceed with their Bill."

Resolutions agreed to.

Selection (Standing Committees),

Standing Committee C

Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had discharged the following Member from Standing Committee. C (added in respect of the Health Resorts and Watering Places Bill): Dr. Addison; and had appointed in substitution: Sir Kingsley Wood.

Report to lie upon the Table.

Wood Green Urban District Council Bill

Reported from the Local Legislation Committee; Report to lie upon the Table, and to be printed.

Standing Committees (Chairmen's Panel)

Mr. JOHN WILLIAM WILSON reported from the Chairmen's Panel: That they had appointed Sir Watson Rutherford to act as Chairman of Standing Committee B (in respect of the War Pensions Bill); and Mr. Rendall to act as Chairman of Standing Committee D (in respect of the Bastardy Bill).

Report to lie upon the Table.

CARBERY'S DIVORCE BILL AND WHITE'S DIVORCE BILL [Lords],

Ordered, That a Message be sent to the Lords to request that their Lordships will be pleased to communicate to this House Copies of the Minutes of Evidence and Proceedings, together with the Documents deposited, in the case of Carbery's Divorce Bill [ Lords ] and in the case of White's Divorce Bill [ Lords ].—[ Mr. Morison. ]

National Expenditure

First Report from the Select Committee brought up, and read; Report to lie upon the Table, and to be printed. [No. 100.]

Orders of the Day

Finance Bill

Order read for resuming adjourned Debate on Amendment to Question [11th May], "That the Bill be now read a Second time."

Which Amendment was, to leave out the word "now" and at the end of the Question to add the words "upon this day six months."—[ Mr. Bottomley. ]

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

Debate resumed.

4.0 P.M.

In the course of the Debate which we have had on this Bill a great deal has been said about the Excess Profits Duty, and Member after Member has condemned that tax as a thoroughly bad one unequal in its incidence, beneficial perhaps to the firms who have obtained a high standard, oppressive to firms of low standard, and most oppressive to new firms. The proposals of the Government in connection with this tax are a great hindrance to the development and progress of industry. It is important to remember that this tax is reimposed and increased just at a time when the need of the country is that industries should be developed and extended as far as possible. I have no hesitation in saying that I do not believe there is any necessity whatever for this tax, and that it should be dropped. In moving my Amendment on the Budget Resolutions, I gave some figures from the Budget speech of the Chancellor of the Exchequer. He stated that he expected, with the increase from 40 to 60 per cent., to get from the Excess Profits Duty some £220,000,000. It is clear that the total amount which he will get this year will be only £30,000,000, because of the £220,000,000, £190,000,000 will be arrears from last year and the year before. Thirty million pounds in a Budget of the magnitude with which we are dealing is really a small item, and it is capable of further reduction, because, if you did away with the Excess Profits Duty in its entirety, it is obvious, from my right hon. Friend's statement, that the yield from the Corporation Profits Tax would be materially increased, possibly, though I cannot say exactly, to the extent of £15,000,000. Therefore, the loss to the revenue for the current year by the complete withdrawal of this tax would be merely £15,000,000. Is it really necessary to reimpose and extend a tax which meets with such hostility from all sections of the industrial community merely for the purpose of obtaining £15,000,000? I should have thought that the better policy would have been to drop the tax entirely.

It should be impressed upon the House that the burden of the tax falls entirely upon the consumer. In the old days, when the Income Tax stood at Is. in the £, it used to be a fiction that it was deducted from profits, but everyone now realises that when you increase these taxes—it does not matter by what name you call them—it is the consumer who ultimately has to pay them. Here is a tax which is hampering and harassing industry, which is unequal, and which it is very difficult to understand. I am perfectly certain that, from the consumer's point of view, it is a most wasteful and extravagant way of endeavouring to raise revenue. It is easy to illustrate it. Take the case of a small provision business with two partners where the standard profit is £20 per week. The standard profit is earned in the first six or seven months of the year and the partners are faced with a diminished profit for the rest of the year. Of that £20 per week, the State takes £12, leaving them £4 each. The pound to-day is worth barely 10s., compared with prewar times, so that the two partners get merely £2 per week each. That is the position in which a great many small industries find themselves to-day. Two things happen. They either slow down and take no further risk, or they carry on their business and put it on to the prices. The result is that you get a natural inflation of prices in all directions, and ultimately the consumer has to pay. What is the policy of the Government? Do they want to keep prices up or do they want to get prices down? As far as I can judge from the action of the Treasury, they consider that it is easier to handle the debt under conditions of high prices. On the other hand, you have huge departments of control which are endeavouring to pull prices down. You have opposite policies. If you were to get rid of the departments of control, you would probably save many millions a year. It has been said that Government control is costing something in the neighbourhood of £400,000,000 per year. I do not believe that it is anything like that sum, but it is perfectly clear that it must be a very substantial amount. The Government should clearly and definitely state what they want and give the country a lead. Do they want high prices? If they want high prices, let them get rid of all Government control. If they want low prices, then they must alter their system of taxation, because the present system of taxation can only result in forcing up prices in a very uneconomical manner.

The Chancellor of the Exchequer said that he had been looking in all directions for an alternative and that he had studied the question of a small tax on turnover. I remember taking a deputation to see him something over a year ago, and, in introducing that deputation, I suggested in a very mild manner that something might be done in the direction of a tax on turnover. I immediately realised—it was only necessary to look at the officials—that a tax on turnover was opposed to every principle of the Treasury in regard to taxation. They would not consider it. I was on unpopular ground, and I promptly dropped the subject. I quite realise, as my right hon. Friend told the House yesterday, that the proposal for a tax on turnover has not only been turned down by his predecessors, but that he also has been reluctantly compelled to do the same. He said that one of the questions put to him was whether they were to take into consideration a tax on food, and he said "No." Under his Excess Profits Duty, however, he is taxing food. He taxes food in every direction. Another question was whether the tools of a man's trade were to be included in a small tax on turnover.

The Excess Profits Duty taxes the tools of a man's trade in an extravagant and wasteful fashion. He stated a third case which apparently made the objections to the proposal conclusive. How was a tax of 1 per cent, on newspapers to be distributed among the consumers? The penny which is obtained from the sale of a newspaper is not the total revenue derived; newspapers have a huge revenue from advertisements, and, if the turnover were taxed, it would be comparatively an easy matter to transfer the burden of the tax to the people who advertise, and no harm would be done. He told us that this tax at 1 per cent. levied on sales to the customer would produce from £10,000,000 to £20,000,000 per year. I should like to know what such a tax at 5s. or 10s. in every £100 levied at every stage of production would produce I believe it would run into terrific figures; possibly £100,000,000. If 1 per cent, on the consumer would produce between £10,000,000 and £20,000,000, the probability is that a tax levied at every stage of production would produce ten times that amount I can quite understand his investigations being turned down by the Treasury, but I should like to see an independent committee appointed. We have an independent committee examining the taxation of war wealth. Why should we not have a similar committee to examine this proposal? It is possible that there may be a huge amount of revenue in it. If so, surely it would be a much better method of raising revenue than the Excess Profits Duty.

Another alternative which my right hon. Friend raised was a levy on war wealth. I am not here to defend those who have gained great wealth through the War. I should rather like to see them disgorge some part of their ill-gotten gains. I am here seeking justice for a totally different class; for those who are engaged in production and industry, for those who are trying to make money and to make money which will be for the benefit of the country rather than for those who have made money and who wish to keep it. But we are waiting. We have had no definite proposal before the House. The matter is under the consideration of a Select Committee and no doubt in the course of time we shall get their report. But my right hon. Friend urged the general idea of the acceptance of the House. He described it as an insurance for the general security of capital, and as a defence against predatory attacks. The levy, I suppose, would be in the nature of the premium on the policy. If the right hon. Gentleman brings any scheme forward to the House he must see that the levy is made fairly and equitably, and then the House will require also the assurance as to the value of this policy. I know the Chancellor of the Exchequer will guarantee that so far as he can, but what about the right hon. and hon. Gentlemen who sit on the opposite side of the House? Will they guarantee this policy? Will they honour it? Will that be the last word we shall hear of the capital levy? Will that close the question? I do not think so.

If we could have some definite undertaking, some guarantee, possibly many of us would regard it with less suspicion than we have shown hitherto in opposing it. But I am afraid it will be merely the first instalment of a very much larger policy. But, at any rate, I should like to see a scheme definitely submitted to the House before offering any further comments on it. My right hon. Friend said that he had many suggestions from people who wanted to tax somebody else and that he is searching for the man who says, "Tax me, that is the way to do it." I took the chair last Friday at a very large meeting of manufacturers—I am told there were from eighteen hundred to nineteen hundred firms represented—to protest against this Excess Profits Duty. There was not one single word of protest against being taxed. They are all willing to be taxed. They all knew that they had to submit to taxation, but they were protesting against such an unjust method of taxation, which, while it favoured some, hit others very badly indeed. I venture to say that if my right hon. Friend had been there and had produced a fair scheme, involving equality of treatment and equality of sacrifice, he would have found that not one single word of protest would have been raised in opposition to it.

I can assure my hon. Friend that I am an earnest searcher after truth. May I ask him if he means that the body for which he speaks would be prepared to accept a graduated tax on profits?

I should like to have some definite proposal from my right hon. Friend as to what he means by "a graduated tax on profits." Does he mean a tax on profits estimated or based on the percentage of the capital employed in the business? Is that the basis of profit? Is the question of goodwill to be taken into account? Does it involve the valuation of assets?

Yes, it involves all those things. Now I want to know whether this tax graduated according to the profits yielded by the capital in each particular business is the kind of alternative which my hon. Friend says his body of supporters would unanimously accept? If not, what is his kind of scheme?

If my right hon. Friend will now tabulate a definite scheme I will submit it to that body. I have never understood what my right hon. Friend meant by a graduated tax on profits. I think it is the fault of my right hon. Friend that he has not made himself clear. I think we are entitled to ask him what he means when he makes the suggestion. There has been the suggestion about a flat rate tax of 7s. 6d. There has been confusion as to whether that is intended to be an extension of the Corporation Tax. Apparently it is a different tax. We must have a clear and concise definition, and if the Chancellor of the Exchequer will formulate a definite scheme, I can assure him that it will be submitted to a very large meeting of manufacturers, and will receive their most favourable consideration.

What I really want to emphasise is that the Excess Profits Duty is an unjust tax, and it rankles in the minds of those who are liable for it. It is not at all necessary to the finance of this year, for my right hon. Friend is budgeting for next year and not for this year. So we have, therefore, ample time this year to explore and examine other methods of taxation, and see if something cannot be found which is fairer and more equitable. We have got ample time. The Chancellor of the Exchequer is budgeting ahead, and I can tell him that by insisting on this tax he is oppressing people who have served the country all through the trying time of the War with the greatest loyalty. They naturally resent that kind of treatment and the want of consideration which they are now receiving. Unless my right hon. Friend can see his way to modify this tax, the tax will receive the most vigorous opposition in Committee, and at all the other stages through which this Finance Bill has to pass.

Most of the criticisms against the Finance Bill have been directed against the Excess Profits Duty, but, in spite of the eloquence of the last speaker, I must confess that, though a manufacturer, I certainly was very glad to hear that the Chancellor of the Exchequer means to stand by this tax. It is true that the tax is one which is not liked by anybody, but the money has to be raised somehow or other, and of the two alternatives I very much prefer the Excess Profits Duty to the flat rate tax of 5s. 6d. or 7s. 6d. in the £ which has been proposed. It is quite true, as has been stated by some hon. Members, that this will render capital more chary of investment, and will make it more difficult for firms to build up reserve. Those arguments might be applied with equal force against the tax put forward as an alternative to the Excess Profits Duty, and the latter has this advantage, that it only makes those, pay who can afford to do so. One can, roughly speaking, divide the trade of this country into two categories: those traders who have done well out of the War and those traders who have been hard hit by the War and who have been doing their best to build their industries up again and to get back to their pre-War standard. If you turn to the latter category and impose on them this flat rate tax of 5s. 6d. or 7s. 6d. in the £ that tax will spell absolute ruin to firms which have already been hard hit by the War. I suggest that it is our duty to encourage all industry in this country, and not only to encourage those firms who are in the fortunate position of being able to pay Excess Profits Duty. I suggest also that there has been a good deal of ill-informed criticism of this tax. I heard one hon. Member yesterday tell a pitiable tale of a large firm which employed 40,000 men. He said that those 40,000 men were going to be turned out into the streets, and that their wives and children would starve because of the increase in the Excess Profits Duty. What does that mean? Is a firm which is certainly doing better than it was before the War, otherwise it would not object to the Excess Profits Tax, going to discharge 40,000 men and wind up an old-established business just to spite the Chancellor of the Exchequer? Can you have a more ill-informed criticism than that? There are many other firms who would be only too glad to be in the position of that firm, and, indeed, I think there are many hon. Members who would also be only too glad to be in the happy position of being as well off as they were before the War.

I venture to speak with some assurance on the subject because I am associated with companies, some of whom are able to pay this tax, and are paying it, and others who have been hit by the War and have no tax to pay. So I can take a more or less impartial view of the subject. The most serious allegation against this tax is that it will hit new companies so hard. But we are promised by the Chancellor of the Exchequer that new companies shall be given special consideration. My hon. Friend says, "What are those considerations?" and I heard another hon. Member complain yesterday that those considerations have not yet been published. I suggest that the Chancellor of the Exchequer must be very careful how he frames those suggestions, otherwise old-established firms will be able to avoid paying this tax by detaching a part of their business and forming of it a new company. The other serious criticism which has been made of this tax is that those firms which had a bad pre-war standard will be very hardly hit by this tax. In my opinion, those are the only two real criticisms manufacturers have against this tax. We are promised that the first shall be remedied. As regards the second, I know, and I speak from experience, that a firm that can make out a good case can have its pre-war standard inquired into and will find the Treasury willing to go into the case and treat it sympathetically.

I believe I am the only manufacturer in this House who has had a word to say in favour of this tax, and therefore I hope the Chancellor of the Exchequer or his representative on the Treasury Bench will listen while I now deal with the question of the Corporation Tax. This tax is an innovation altogether, and before this House should be asked to pass it I think a better case must be made out for it than has been made out up to the present time. I regard it as a most unjust tax, and I cannot see the fairness of penalising investors because they have put their savings into limited liability companies. I have listened most carefully to all the speeches that have been made, but I have not yet heard any honest reason why limited liability companies should be singled out specially for this particular form of taxation. Apart from the Chancellor of the Exchequer, there have been only two Members to advance any argument in favour of the Corporation Tax. namely, the right hon. Member for Paisley (Mr. Asquith) and the hon. Member for York (Sir J. Butcher). They both put forward the argument that it was fair to impose the Corporation Tax on limited liability companies, because it was the practice of such companies to avoid paying Income Tax by transferring large amounts to reserve and subsequently distributing those reserves as bonus shares. The Chancellor of the Exchequer has himself killed that argument, because in replying he said: Corporation Tax is imposed, though not liable to Income Tax, let alone Super-tax, these small shareholders will be paying an additional Income Tax of 1s. to 2s. in the £, on which they cannot get any rebate. Surely that is not what the-Chancellor wants. It is the rich man he is after, and he can only get him by penalising hundreds of poor men, if he insists on this tax. Therefore I contend that it is up to the Government either to drop this tax altogether or else to get at the rich man and leave the poor man alone.

The burdens of this Budget are enormous, and although I have some doubt whether the provisions for repayment of debt are not too heroic, and whether we might not perhaps have better devoted our energies to cutting down expenses in every direction as a means of making this necessary provision for the reduction of debt, I am willing to accept the Chancellor's proposal on the subject. Though I do that, it is important, I venture to think, that we should consider whether this enormous burden falls equally amongst the various persons who have to pay it, and what I am going to ask the House to do Is to consider whether, as it affects the rural ratepayer and the agricultural ratepayer in a more intensified form, this incidence is not very unequal and very unjust. I think everyone will agree that the modern view of taxation, whether with regard to rates or taxes, is that the amount called for by the Government should bear as equal a proportion as we can get to the ability of the taxpayer or ratepayer to pay it. It is, therefore, in my view, of great importance—in fact, it is absolutely necessary—that, in arriving at any conclusion as to whether a tax is fair or not, the amount paid in rates as well as the amount of Imperial taxation should be considered; in other words, that in estimating the taxable capacity of a person the totality of rates and taxes should be looked at, and I venture to say that there is a debt long overdue to the rural ratepayer, and more particularly to the agricultural ratepayer. The question is not a new one, and it mainly is this, that the local ratepayer has, for the last 30 years, been called on to pay in steadily increasing amounts sums of money for services that are national or semi-national instead of local, and although his burden to some extent has been ameliorated by grants and by what is called the assignment of certain revenues, the growth has been so heavy that it is now, so far as this particular class of person for whom I am speaking is concerned, out of all proportion to what is borne by other classes of the community.

What are these national or semi-national services to which I am referring? They are education, poor law, police service, main roads, public health, criminal prosecutions, and mental deficiency. With great confidence, I put it to the House that it is clear that education is a national as apart from a local service. We, who live in the villages, educate our children, and the large bulk of the children who receive their education in our village schools go out into the world and go in a great measure to the towns and other parts of the country, and education is therefore a national service. If the House once accepts that, it follows that main roads are even more a national service. In the early times the traffic on the roads was practically local, and local resources were fully competent to deal with it, and did deal with it, but nobody can for a moment suggest that on some of the main arteries out of London—where there is this fast-moving motor and steam traffic land all sorts of mechanically-propelled vehicles, where the public require that these roads shall be kept with foundations and with a surface incomparably different from what was ever anticipated when the regulations for the upkeep of our roads were designed—nobody can suggest that this service is now a purely local one, and yet at the present moment every farthing of the cost of our main roads, except certain grants made by the Road Development Board, have to be found by the local people in local taxes. Everyone again knows that the services for public health, for poor relief, and for countless other purposes which are imposed on local authorities by this House in steadily increasing amounts, involve the expenditure of monies in very large and steadily-increasing degree. This principle is not new; it has been considered by a Royal Commission on Agriculture in 1893, by a Royal Commission on Local Taxation in 1896, and by a Departmental Committee on Local Taxa- tion again in 1912. I think I am not exaggerating when I say that all three on this point came to the same conclusion, namely, that there is a great hardship on the local taxpayer and the local ratepayer which at each time was calling for redress. I would, if I might, just read the conclusions of the last body. They were: have been pledges by the present Prime Minister, when Chancellor of the Exchequer, to deal with the matter. There was a long Debate on the Address in 1911 on this very subject I am raising, and the present First Lord of the Admiralty (Mr. Long) then referred to a speech made in the preceding Session by the present Prime Minister, who was then Chancellor of the Exchequer, who used these words:

Let me come to the next point. I stated that the grievance existed in a very intensified form on the holder, the occupier, of agricultural land. It is admitted by most economists, and it was accepted in these various Reports, that the user of agricultural land is in a different position from the user of other rateable hereditaments in that, by the nature of his calling, he has to occupy more of a rateable hereditament or rateable property in proportion to what is used by other members of the community, whether for trade or any other purpose, having regard to the profits he makes and the benefit he receives out of the local rates. He is bound to use a large quantity of land, and in illustration of that may I read again from that 1912 Report, because the illustration puts in better words than I could the difference between the two. It gives a concrete example: of the Exchequer of that day recognised, that the farmer was still paying out of proportion on his local rates, and he was allowed to pay a less income tax in consequence, the assessment of the farmer to income tax being one-third of his rental. You have, therefore, to look at the two things to see whether you get a fair basis of taxation or not. It is a striking fact that, although the rates have increased in this way, and are even now over twice what they were in 1896, the amount given in relief under the Agricultural Rates Act has remained exactly what it was in 1896. I asked this question, on the 29th March last, of the Minister of Health:

The two figures that were given to me by the Minister of Health were that the total amount of rates to which the Act applies, collected in respect of the year ended March, for the spending authorities referred to, was £20,800,000, and the amount, one-half of allowance, given under the Agricultural Rates Act in respect of farm land, was in 1897 certified at £1,331,034. The rate collected for 1917 (the latest year for which the returns are complete) was approximately £47,800,000, or an increase of almost two and a half times. The amount paid in relief to the agricultural farmer was £1,323,827, a few thousand pounds less. Therefore the relief given under these Acts had altogether disappeared. The farmer is being now, even if there should be no increase, paying rates over double what he was paying, and the one-half relief that he got has altogether disappeared. The balance is made good by the other ratepayers. I trust that the hon. Gentleman the Financial Secreary, who so ably represents the Treasury, will represent what I am saying to the Chancellor of the Exchequer as to the depredations on the agricultural occupier. They have increased the taxes—not the Income Tax that he pays—I must leave other minute questions of the allowances he gets—and he does get an allowance!—and I do not want to put the matter too high—but those farmers who pay full Income Tax have had it greatly increased since 1914.

In 1914, when the War began, they paid Income Tax on one-third of their rent of one or two shillings in the pound. The basis of their assessment—the House will be aware that they have an option to pay under Schedule D, and I am not complaining of this basis even now, although I think it is too high; it would have been better if he had been left with one years' rent, but it has been raised to two years' rent under Schedule D, and the agricultural holder, farming land is assessed for Income Tax at twice his rent instead of one-third, and therefore that assessment is raised six times, and the poundage, as we all know, has been raised from Is. to 6s., and he pays therefore—this man who gets no allowance— 36 times what he did. In addition, he suffers from the gross injustice in this enormous increase of rates that he is called upon to pay for all these services which are national in character, or services of necessity. The case is a strong one, and it ought to be dealt with.

If the agricultural vote in this House were strong enough, and we were not patriotic, we ought to take up the position that we should object to this Budget until we got a promise of relief. We should object and vote against it until we got inserted in it some of the increased subvention—I think the amount stated in 1912 was £6,000,000 or £7,000,000— advocated and suggested as being reasonable by the Local Taxation Committee to which I have referred. We should also have an assurance from the Chancellor of the Exchequer that next Session we should have this question of the proper adjustment between local rates and imperial taxes, and the question of the adjustment of the local rates themselves, raised and dealt with by the Government. I ask for such an assurance. If we of the agricultural party were real Parliamentarians, real politicians, and were not desirous of acting in a patriotic manner, we should probably take such further action as we considered necessary. Meanwhile I accept the Chancellor's proposal, but our case is so strong that I do ask him to carry out the pledge and undertaking given by the Leader of the House of Lords in 1911, and by the present Prime Minister when he was Chancellor of the Exchequer—the one was a definite pledge, and I think the right hon Gentleman, now Prime Minister, never denied that he also understood it was a pledge given on behalf of the Government—that something should be done in the next year. I ask now that something should be done in the next year.

There is one tax which has received very little attention in this Debate, with the exception of the reference to it on behalf of the co-operative societies. I refer to the Corporation Profits Tax, and I desire to say something on it. In form this is a tax on the profits of companies; in substance it is of the nature of an Income Tax on ordinary shareholders in every company in the kingdom varying from one to five or six shillings in the pound, as I shall endeavour to show. This tax is levied not only in connection with limited companies, as I have seen stated in the Press, but in connection with every company in the kingdom, railway companies, gas and water companies, and so on. This is the startling result, that the ordinary shareholder—the great majority—has not the remotest conception that he is going to pay a tax of from one shilling to five or six in the £. How does it come about? In this way: the tax is imposed as a tax on the profits of companies—that is, the profits made by a company, without any deduction for interest on debentures, for dividends on preference shares that have a fixed rate of interest, for Income Tax, or for this Corporation Profits Tax itself. There is this limitation upon it, that the tax must not exceed 10 per cent. of the profits after there has been deducted the interest on debentures and the fixed dividends on the preference shares.

Let me just show how that works out. In the first place, the interest on the debentures and the fixed dividends on the preference shares must be paid in full; therefore the whole of this tax—every penny— must fall upon the ordinary shareholders. My second point is that this really is in the nature of an Income Tax, seeing it is so much deducted from a man's dividend. But the astonishing part of it is that, although in substance this is an Income Tax, yet the man who pays it is allowed no abatement, no exemption whatsoever, which he would be allowed if it were Income Tax. The result is that the small man who has ordinary shares in a company, and nothing else, will have to pay this tax of one shilling to six shillings upon his ordinary dividend, and yet will not be allowed to get one farthing back in the shape of abatement, or exemption, and this although his income may be £150 a year or thereabouts. Inasmuch as this new tax is not called an Income Tax, he cannot get a farthing back. That is rather a serious position. Let me show how it affects the larger shareholders—men of some means. Such a man, say, holds ordinary shares in some of these companies. He will have to pay, first of all, his six shillings Income Tax. He may have to pay his three or four shillings Super-tax. That makes 10s. In addition he will have to pay, under the Corporation Profits Tax, anything from one to-six shillings in the pound, which will bring up his payments to fifteen or sixteen shillings in the pound. That seems hardly right. When you consider the class of company dealt with by this tax it becomes even more surprising.

If this tax were confined to a tax upon the profits of limited liability companies which are making 10, 15, 20, or more, per cent. or, as we heard yesterday, 500 per cent., and the tax fell upon the ordinary shareholder, personally, I would see not hardship at all of the ordinary shareholder being called upon to pay this tax out of a large dividend. But this tax falls not only upon companies which pay these huge dividends; it falls upon every railway company in the kingdom—companies which have not paid more than 1, 2, 3, or 5 per cent, on their ordinary shares for a great number of years. Let me take a specific case—that of the Hull and Barnsley Railway Company. It contains a very large number of small shareholders who subscribed their money locally in order that this railway might be constructed. For many years past the railway has paid, I think, only 3 per cent, on its ordinary shares. The effect of this tax will be that out of that 3 per cent, the ordinary shareholder will have to pay this very large tax. Now in the case of the Hull and Barnsley it will be, let us say, two shillings. Take every class of railway in the country. Are there any paying more than 3, 4, or, it may be, 6 per cent.?

Take the case of gas and water companies. Whatever they earn, they are prevented by Statute from paying more than a certain dividend. Yet the share- holders in these companies will have to pay their Corporation Profits Tax at the same rate as the other companies which are earning 200 or 500 per cent. Take, again, a very large class of limited companies who now and for many years have been paying relatively small dividends of 4 or 5 per cent.—because, although we have heard a great deal about the profits made during the War, it is not every limited company which has made these enormous profits. There are many small companies, consisting of small shareholders, who have not been making more than their 4 or 5 per cent, on the ordinary shares. Yet again, there is no distinction between them and the richer companies. That really is not all, because there are numbers of railway companies in this country who have divided up their ordinary shares into preferred and deferred. I think the Midland, the Great Northern, and a considerable number of the Scottish railways have done this. What is the effect in these cases? The preferred ordinary shareholders will get their full rate of dividend notwithstanding the Corporation Profits Tax. The deferred ordinary shareholders will have to pay at the rate which will fall upon them as if they had not been separated, and as if all the shares were ordinary. These deferred ordinary shareholders in some railway companies will have to pay from 5s. 6d. to 6s. in the £ on the amount of the dividend they have received. I hardly think that is intended by my right hon. Friend, and I hope he will consider it at a later stage of the Bill. Let him keep the tax for the big dividend-paying companies, but in the case of the small companies paying 5 or 6 per cent. let him exempt them, and make the companies and the shareholders who really can afford it pay. What I would suggest is that, where a company has for an average during the last five years paid no more than 5 or 7 per cent., that company should be exempt from this tax.

That does not meet my point at all. The tax would be on the profits of the company, that is not only the sum divided amongst the shareholders or the parties interested, but also the sums placed to reserve by the companies, and if they paid 5 per cent., what does the hon. Gentleman mean? Five per cent. on what? Is it on the nominal capital as shown in the balance sheet? Because that would be a far greater injustice. Take the railway companies, and compare them with a business where a great part of the capital employed has been found out of the profits. You must allow the balance sheet to be re-opened, and that brings you to the valuation of capital in any concern.

I am aware that the right hon. Gentleman is very accurate in showing difficulties.

I was prepared to face all these difficulties, but it is these difficulties which make any tax involving valuation distasteful to business men.

I quite realise that you must make your exemptions fair to the man who is exempted, fair to the other taxpayers and fair to the Revenue. I have no desire that the exemption should be all in favour of the taxpayer, and not in favour of the Chancellor of the Exchequer, but what I say is that cases such as I have mentioned where there are shareholders who for years past have never been receiving more than from 1 to 5 per cent. ought not to be taxed in the same way as shareholders who have been receiving 20, 30 or even 100 per cent. I am not going to suggest any very crude plan of making the exemption to which my right hon. Friend would immediately object. I think it is for the right hon. Gentleman to devise the exemption. I did not propose the Corporation Profits Tax, and the right hon. Gentleman did, and it is for him to devise exemptions or exceptions which would be fair as between the taxpayers and the country. I urge him before we come to the Committee stage to meet that point. Whenever you impose heavy taxation the Chancellor must be prepared to make exemptions in hard cases. Such cases have occurred with the Income Tax, and with the Excess Profits Tax you had to make exception in hard cases as well as with new businesses and small businesses, and so on. I ask the Chancellor of the Exchequer to take this matter into his most careful consideration, and while imposing new and untried taxes intended to bring in a large amount to the Exchequer, I ask him to see that the money comes mainly from the class which can best afford to pay it.

I am sure we have all listened with interest to the claim put forward on behalf of a revision of local rating as compared with the burden of general taxation by the hon. Member for East Grinstead (Mr. Cautley), but when he comes to differentiate between the claims of rural and urban ratepayers, I think some of us will have to join issue with him. The hon. Member referred to the added burden which the House has put upon rural ratepayers during recent years, and he alluded particularly to education. May I. point out that the burden in industrial areas for education is greater than for rural districts.

I thought the hon. Member put in a special claim for rural areas and suggested that they should be differently treated. If that is not so, then we are at one. The burden on the urban districts has been infinitely greater than the rural districts, particularly on account of the action of the Minister for Education in regard to necessitous school areas, which have a much bigger proportion of school places to provide than many towns. Obviously, in a town like Bournemouth, with a particularly small demand upon its public school places, and a large industrial town like Leeds or Middlesbrough, the burden is infinitely greater on the town which is least able to bear the burden. I urge upon the Government the necessity of revising the whole incidence of local rating, which hits various localities indifferently and hardly at the present time.

I rose mainly to draw attention to two other points. Those who took part in the Debates on the Budget Resolutions received the statement of the Chancellor of the Exchequer almost with unanimity in regard to its courageous character, and I am sure the country will receive with the same acclamation the statement he made with reference to the taxation of war wealth. No stronger claim for a levy on war wealth has ever been made from any Benches in this House than that made by the right hon. Gentleman himself last night. I would ask him how it is, holding those views as to the practicability of such a tax, he leaves it to this House and asks a Committee of this House to say whether that tax shall be imposed, and I would like to know why he has not taken the responsibility of coming to this House and demanding that we shall place a tax on war wealth. I hope he will take his courage in both hands and say he is prepared to recommend to the House that some of these huge fortunes which have been amassed during the last five or six tragic years shall be used to write off our tremendous burdens. The statement yesterday was a most pronounced one, and I hope it will be followed by equally pronounced action.

There are one or two points which raise matters of principle. One of them was referred to yesterday—I allude to the new Corporation Profits Tax and its application to co-operative societies. That matter was gone into exceedingly ably, and I do not want to repeat the argument. It all seems to hinge entirely on the question as to the nature of a co-operative business as compared with a private trader. Is a co-operative business merely an exchange of goods for mutual benefit, or does it exist to make private profit? It was clearly shown, I think, that the basis of co-operation was mutual exchange. There was no profit made from an outsider, and when it was made from an outsider it was admitted that it should be taxed. Can John Smith make a profit out of goods that Mrs. Smith buys? It is impossible for an individual to make profit out of himself, and it is likewise impossible for a multitude of people banded together for mutual trading to make a profit out of themselves. Is this tax upon income or expenditure? Surely it is not right to tax the same money in the same hands twice over. It is intended to be a tax on income, and therefore if a man pays his tax on his income and is earning £6 a week he pays his Income Tax on that sum, and should he have to pay it again when his wife goes to the co-operative stores and spends that £6 in buying necessities? Surely you cannot have the tax both ways. You cannot tax the same money as income and then tax it again as expenditure. Therefore I hope the Chancellor of the Exchequer will bear in mind that point, and recognise the inequality of charging the same money in the same hands twice over for the one purpose. If the expenditure goes into other hands, and makes a profit for those who receive it, that is another matter altogether; but when the money remains in the same hands, and in one case it is income and the other expenditure, surely there is no reason why it should be taxed twice over.

A more important question is whether this Budget alters what has been a recognised principle for some years. This tax deals with the abolition of land duties and land valuation as set forth in Clause 40. To some of us that appears a most reactionary measure because we have been cradled in the school of land reformers, and we look upon the 1909–10 Act as the Magna Charta of land reform. We have been taught this by the Prime Minister in this House. We remember those stormy times and what happened here during the tremendous fight which the Prime Minister put up to establish the bed-rock principle of the necessity of land valuation and the Land Values Tax. We remember how he carried the fiery cross throughout the land. We have not unlearned that lesson, and we want to know the reason for the change and what are the difficulties. What was the need of the tax at that time? Is there not the same need to-day, and has not the tax and the valuation, during the short period for which it has been in operation, been of considerable use in achieving the ends for which it was intended? The Prime Minister at that time showed clearly that the whole social development, the industry, housing, and all the social amenities of our industrial life in our large towns, were held up because the land was kept from its proper use. The same need and the same causes are at work now, and, if it was justified then, it is equally justified now. What did the Prime Minister say? He said: up a committee of inquiry into this question, which he believed, and which some of us still believe, to be at the root of all our social problems and our industrial unrest. That Committee found that, owing to the holding up of land, the building of houses and the development of industry in our towns were seriously retarded. They made inquiries into the cases of 90 towns, with a population of 9,000,000. They found that in 15 of the smaller towns there was no difficulty in getting land. We agree. It is in the large industrial towns that the trouble arises. In 75 of those 90 towns, with an average population of 112,000, there was very great difficulty, because the land was held up. That was why the Land Valuation Department was set up, and why these taxes were imposed. Many instances were given which are as true to-day as they were then. There was the case of Glasgow, which had to forgo a library because £4,500 an acre was asked for the land; and the case of Birmingham, where school sites had to be abandoned and less suitable ones taken because £2,500 an acre was asked for the land. Throughout the country we have similar cases of housing schemes which have been burdened on account of these excessive prices, and where school sites have had to be paid for at an enhanced rate because of the lack of courage in tackling the land question boldly. In my own town of Middlesbrough, where I have been a member of the Education Committee for 20 years, I had some figures taken out for sites for elementary schools during the last 30 years. I was astonished to find that the average cost of those schools amounted to £1,500 an acre for land, which, in the majority of cases, was on the outskirts of the town.

I am coming to that directly, and it points a useful argument which I am going to make In Middlesbrough, during the last 30 years, the price of land for school purposes averaged £1,500 an acre. What has been the effect of this Land Valuation Department? Owing to the use which the Minister of Health has been able to make of it and the figures which it has established, land which previously cost us £1,500 an acre can now be had for less than £200 an acre. The average cost of land for Ministry of Health housing schemes in the same town, and situated in approximately the same area, has been less than £200 per acre.

No, they had not gone, and there was no suggestion that they were going. It was because the Ministry of Health and the local authority had the assistance of the Land Valuation Department as to the value of the land which they required. It is interesting to notice what happens when that assistance is not forthcoming, and I am sorry to say the Treasury have refused that assistance to other departments of municipal government. Only last Tuesday the local authority had a minute from its education committee advising the purchase of a site of acres for an open-air school, on the outskirts of the town, at £1,750 an acre. That was where the Land Valuation Department was not allowed to come to our assistance. The same holds good throughout the country. We have had replies from the Minister of Health which showed that the average cost of land in urban areas throughout the whole country for housing schemes has been £216 per acre.

It is due to the work of the Land Valuation Department. They have the figures for the value of the land in 1909–10. In many cases the Minister of Health here in Whitehall refused to sanction the price that had been agreed upon between the local authority and the willing seller, because the figures in possession of the Land Valuation Department showed that that price was excessive. Owing to the calling in of the Department, in 2,610 cases, up to the end of February, a saving of £73 per acre had been effected, totalling over £1,000,000. If that saving is effected by the direct interference of the Ministry of Health, acting through the Land Valuation Department, I think we may fairly conclude that indirectly the saving to the municipalities of the country has been infinitely greater. This is not the time to reverse that policy and go back on a scheme which has been fruitful, and which has already saved the country many millions of pounds. It is true that it has not brought in the revenue which 'some had hoped, but surely that is a reason, not for repealing, but for amending and strengthening those powers which were so desirable in 1909–10. It is deplorable that the Prime Minister, who initiated this valuation, should now, when he is the head of the Government, propose to repeal that which many of us regarded as the foundation stone of land reform for the future. The undeveloped land tax should be increased in order that land may be forced into the market and in order that it may not pay a man to withhold land from use until, by starving the interests of the town, the town is blackmailed into giving the price that he demands. This is a serious matter for the urban districts and industrial areas. Hon. Members may smile, but I do not believe they can honestly defend such a policy. Think of the tremendous value that has accrued during the past 50 years on the fringe of every industrial area, owing to this unlicensed profiteering in land, and think of the future. If, during the next 50 years, we can ensure that the development of a town—its housing, schools, playgrounds, the whole of its social amenities—shall not be cribbed, cabined and confined by the dead hand which holds back the land, think how our towns would grow; think how our death-rate would be reduced: instead of there being, as there is in many industrial areas, an infantile death-rate of 145 per 1,000 births and an adult death-rate of 29 or 30 per 1,000. If there ever was a time when we wanted to conserve the life and well-being of our community, it is surely now, after a devastating. War which has sacrificed the better part of the manhood of our country. That can only be done in healthful surroundings. You cannot raise an A 1 population under C 3 conditions. You cannot rear healthy people in the slums and rookeries of our large towns. Until you free the land, and tax land withheld from use so that it does not pay the owner to cripple the development of our towns and industrial areas, you will never solve the problem.

I protest against this reactionary proposal, and suggest that, at a time like this, we should sink old party differences, and attempt to look forward on social conditions without those prejudices. I see that hon. Members smile, but I cannot really believe that it is just that the whole health of the community should be starved in order to put fortunes into the hands of the land grabber and the land jobber, who come on the fringe of our industrial towns and hold up their development. I challenge any hon. Member to prove that in these large industrial centres the health conditions have not been worsened, that industry has not been held up, by this policy of denying to the people that which is their right. We should forget the past, cry a halt, and say that in the future this shall not go on. We will leave those who have acquired their fortunes out of these unjust operations with what they have, because the community has been responsible in a measure for tolerating it; but let us in the future forbid profiteering in land. We have been busy, during these last two Sessions passing Acts whereby a widow who sells a pennyworth of candles for three halfpence is prosecuted, while the man who robs the children of the town of their healthful surroundings gets off scot-free. Let us say that that increment, made by the community, by the locality, and by the labour of those who are employed in industry, shall be used for the advantage of those towns, so that they may be allowed to grow without paying these fabulous prices. The well-being of our country does not consist in stocks, shares or machinery, but rather, as Ruskin said, in the number of full-breathed, bright-eyed, happy-hearted human beings, and we cannot have those as long as the development of our country is throttled by land monopoly.

Since the Budget was introduced, and since the presentation of this Bill, many of us have had an opportunity of consulting what may be regarded as constructive Labour opinion in this country. I think I interpret that opinion correctly when I indicate that in the main we are satisfied with the immediate provisions of the Budget in certain spheres, but we are profoundly disappointed when we have regard to what we may call the long view in British finance and also in British social conditions. The immediate advantages or gains of the Bill appear to me to lie mainly in the sphere of Income Tax and its reform, and there cannot be the slightest doubt that for that improvement we are indebted to the labours of the Royal Commission which went into this matter with great thoroughness under very excellent leadership, and produced a Report which has obtained the almost unanimous backing of a very large section of our people interested in this and kindred problems. If we put it popularly and say that for the minor professional people of the country and for the very large number of the wage earning class it is now true that in a house with a wife and two or three children, they may now have an income of anything between £350 and £400 per annum without being liable to a copper of Income Tax. We have stated something on which we are entitled to congratulate ourselves, on having emerged from the difficulties of the Great War, confronted as we are with a debt of approximately £8,000,000,000. That is a very remarkable achievement in the sphere of direct taxation which will bring relief, not only to a very large section of wage earners, who have been penalised by the high prices of recent years, but to people who have existed on the smaller class of fixed incomes. If I were asked which class has suffered most terribly during these tragic years of war in the matter of taxation and income, I should unhesitatingly say it is that class which depended upon pensions or allowances running from £100, and sometimes even less, to £200, or £250 per annum, and who were incapable, by reason of ill-health or other cause, of adding to their income during the course of the War. These people had no means of increasing the amount on which they depended. They were exposed to very great increases in prices. They maintained, as it is commonly put, a certain place in society and they have paid a very heavy penalty indeed since 1914. I am glad to think that in this Budget, as the result of the labours of the Royal Commission, we have been able to do something for that class and for the very considerable body of wage earners as well.

But, having paid that tribute to the proposals of the Finance Bill in regard to Income Tax, I am obliged to draw attention to one or two weaknesses of the scheme. There is no doubt that in a large and comprehensive inquiry which had to be undertaken in the course of one year only, and during which we had to examine a very large number of witnesses upon highly technical and complex subjects, there was not an opportunity of proposing that detailed scheme of reform which many of us would have liked to see. The result was that we had to agree to present a report which would be broad and general in its outline, which would indicate to the Chancellor of the Exchequer that to the best of our knowledge and ability that was the line of policy which he should adopt, but which undoubtedly left a great deal of detail on minor points for the consideration of this House. I will indicate one or two of the classes who are affected by the failure of the Royal Commission to go into these details. There is, first of all, the tax on widowers who depend upon relatives or others to keep their house. For that class, there is not the slightest doubt, we require to make better provision. In the second case we certainly require to make much better provision for the class of people who have dependent relatives to maintain. At the moment they are penalised in two ways. In the first place, the amount of the allowance is admittedly insufficient, and in the second place there is manifest injustice in the limits of income of the dependent relatives which are adopted for the purpose of conferring any concession at all upon the people who are responsible for their maintenance. For these two classes and for many kindred classes we shall require later to make more provision.

In the third place I am entitled to argue without any lack of respect to other members of the Commission that we have by no means exhausted our possibilities in the matter of Super-tax, its imposition and collection. There were members of the Royal Commission who argued that when we took Income Tax and Super-tax together and when we had regard to the other liabilities which fall upon members of the community, either in their homes or in their businesses, we had probably reached the limit of taxation which we could with justice and safety impose upon the 44,000,000 of our people. You can carry taxation to a certain point, but beyond that point it becomes either a very heavy penalty on industry or enterprise r it ceases to be productive at all. We keep these things clearly in view, but while I have carefully had regard to that fact, I am obliged to admit and to recognise that we could probably carry Super-tax on certain classes of income much higher than we have carried it at present and yet be perfectly just to the individuals concerned. That argument can be defended mainly because of the greatly changed conditions of British industry and commerce. If we go back a century or less in our history, if we go back to the time of individualistic enterprise, when there was something resembling genuine competition, the case for not carrying taxation higher was probably stronger than it is to-day. But we all recognise that British commerce and industry has changed. The trust movement has grown enormously within recent years. Combines, associations, syndicates, price rings, and pools have made tremendous progress and there is not the slightest doubt that a considerable section of our people get an income more or less automatically which does not depend on their personal exertions. That is true of land, but it is also true of a very considerable part of our industrial structure, and inasmuch as a very large part of that income flows automatically to these individuals, inasmuch as the old time competition has gone, and inasmuch as we must take a new view of taxation and regard it as not merely producing revenue, but as helping to redress the economic injustice of the community, we argue that we could probably carry Super-tax higher than it is now carried and yet do no injustice to the individuals involved. The Royal Commission was very particular, in laying down the scale which is embodied in its Report, to indicate in a paragraph on this subject that, while we mentioned that scale as being probably suitable to existing conditions, we thought the Chancellor of the Exchequer after inquiry might build upon it and might levy heavier taxation, although I am always willing to admit that there was very sharp division of opinion on that point.

The other point of the Bill to which I wish to direct attention is the part which refers to co-operative societies. I should not have referred to it but for the fact that it appears to be quite possible to get, not only the right hon. Gentleman, whom I do not accuse of any failure to look at the whole Report, but many other hon. Members to read more than the first five lines of the Clause which deals with the principle of mutuality. All hon. Members are willing to read the five lines which indicated by way of pious opinion that if a Corporation Tax were ever introduced, the co-operative society as a legal entity would be a proper subject for such taxation. The whole of the paragraph is legal argument, to a certain extent, devoted more or less completely, as many of us think, to this problem of mutuality, and it says: great importance from the point of view of the social well-being of our country. Let us suppose that the contention of the right hon. Gentleman is carried, and that we apply Corporation Tax and Income Tax to the undistributed portion of the result of trading on the part of co-operative societies.

6.0 P.M.

I wish to give a concrete case from what is probably the largest co-operative society in the country, or, at all events, one of the largest. It is a society of 66,000 members, and if you reckon the home of each member as consisting of three or four persons, that society covers 200,000 to 250,000 people in a city with a population of 320,000. My Scottish colleagues will at once recognise the city for which I have the honour to speak. Here is an organised mutual trading concern, or call it what you like, which is covering the homes, directly or indirectly, and the acute economic needs, of from 200,000 to 250,000 people. Before taxation is applied to an organisation of that kind, we must have regard not merely to its economic effect, but its social consequences. What are those social consequences to-day? These amounts which are placed to reserve, which are not distributed by way of dividend on purchases, are used in four ways. In the first place, the money is used for benevolent purposes. Secondly, it is used for contingency purposes, and in regard to that I admit that we have not the strong case which can be built up on the other three. In the third place, the money is used for the purpose of unemployment; and in the fourth place, it is used for educational purposes. If you take three of these four purposes into consideration, no hon. Member will deny that these societies using these funds, be they large or small, are really engaging in a great deal of public work, which, but for their activity and enterprise, would fall upon the assessments of the local authority, and might involve a charge upon the Exchequer, because the Exchequer is liable for 50 per cent. of many of the most important new services which local authorities now undertake. This is not a question of evading taxation. On five out of six heads the co-operative movement is liable to all the taxation that you impose upon other people. It makes no complaint. It willingly pays, and will continue to make that contribution in the best of good faith, and with all the good purpose in the world, but we cannot under existing conditions in this country embark upon any scheme of taxation which is going either to penalise thrift or to penalise social effort which, but for the existence of that effort under these auspices, would fall upon the broad back of the State or on the back of the local authorities.

Had I been a large proprietor of capital, which I am not, and my colleagues are not, or if I had been the promoter of a great business in this country, one of the strongest objections I should offer to the Finance Bill would be that it marks a departure from one of the plainest and clearest canons of taxation in this country, inasmuch as it is multiplying the taxes upon which we are going to depend. There is Income Tax and Super-tax. We may regard Super-tax for the time being as a development of Income Tax. Many people would abolish Super-tax altogether and make one graduated scheme of Income Tax right up from the bottom to the top of the scale. We need not pause to argue that. There is a big case for and a very big case against it. You have also the Excess Profits Duty, and in addition the Corporation Profits Tax which is introduced for the first time in this Budget. Nearly every hon. Member will admit, whether he is strongly hostile to Labour or sympathetic to Labour, that it is our business in any country and in connection with any Finance Bill to concentrate as far as we possibly can upon one or two instruments of taxation, upon one or two taxes, which you can make certain. Build them up on lines of justice and do not embark upon a multiplicity of taxes which will only lead to one being played off against the other, to evasion on the part of a very large class of people as in the case of the Excess Profits Duty, and also lead to abuse not merely on the administrative side in the multiplication of officials, but also in the general scheme of taxation in Great Britain. These are sound and plain principles to which probably the majority of hon. Members have subscribed at one time or other in their political careers.

I will say nothing more on Income Tax or Super-tax, but I do desire to make perfectly plain the attitude of what I believe to be responsible Labour opinion in this country towards the Excess Profits Duty. We are under no illusion at all on that point. Speaking for myself, and I believe for the great majority of my colleagues, I regard this as a bad, wasteful and useless tax. It is not to be defended by anyone who has thought about the most elementary economics. The facts are plainly obvious. I will deal with the Excess Profits Duty in reference to what seem to me to be two of its evils from the point of view of the industrial population of Great Britain. There is not the slightest doubt, according to the investigations we have been able to make, that by reason of the differential treatment which it inevitably involves, there must be a penalty on some firms and a certain advantage to others. Conditions like that inevitably re-act upon employment, and I believe the cause of a certain proportion of unemployment has been traced to the operation of this tax, to the uncertainty as regards the future, and to the fact that business men with capital to invest hesitate before they embark upon certain enterprises which most people would have considered safe in this country. I do not think we gain anything by refusing to face the facts. That is the first difficulty, but there is another difficulty which' arises in connection with the method of remuneration in Great Britain.

Most hon. Members will agree that the existence of the Excess Profits Duty has led to the distribution of certain sums either by way of bonus or reward which would not have been employed in that way had this Excess Profits Duty not existed. That is candidly recognised by most business men, and by most students of this problem. What has been the effect of that device upon certain sections of wage earners in Great Britain? In practice it has amounted to a jumping of the rates of remuneration for certain favoured sections, who may be salary earners or wage earners, in particular industries, to the disadvantage and manifest loss of their fellows who were not in the position to benefit by the jump when it was achieved by this quite unnatural method. This has led to very grave difficulties for certain of our trade union organisers. I should be the last to suggest that we should not raise wages in this country. The course of prices not only here but throughout the world dictates that we should raise wages; but when we are raising wages we should raise them justly and fairly over the whole class of the industrial or it may be the professional population, and we should not be exposed to a system of jumps which spring probably from other causes, but which in my experience have sprung from the operation of this Excess Profits Duty as well. We defend -this tax not certainly as an economic proposition, because it is not that. We realise that all waste must in the long run fall upon the 44,000,000 consumers. We only defend this tax for the time being because we are in the same position as the Chancellor of the Exchequer. Like him we realise that the money must be found. That is why we support for the time being a thing we do not defend. We take the money like true Scotsmen and hope that a better system of taxation may emerge at the earliest possible date.

We object to the Corporation Profits Tax on the ground that it unnecessarily multiplies the taxes of this country. It is exposed to another serious objection. I do not suppose that any hon. Member would dispute that it is in the main, and indeed wholly, a tax on aggregates. When we get away from the taxation of the individuals, and impose taxation on aggregates, we are exposing ourselves to very real risks. In the main our obligations in Great Britain are personal and individual. We have responsibilities for the home. We have a certain income which comes to us as individuals, and we have obligations, many of which can be seen by the outsider, but many of which are invisible and silent but none the less real. That points at once to the individualist basis of taxation, and it also bears very strongly on the principle of the individual ability to pay. No doubt we may modify that by the family basis to some extent, and there may be development on these lines in this country in the near future. At the moment the individualist basis is very important, and the Corporation Profits Tax appears to me to invade that almost sacred principle. We defend it only as a temporary device. There may be firms that are not bearing their proper share of Income Tax, and on the other hand there may be firms which are evading the Excess Profits Duty or are not liable for it. At any rate it will give a certain amount of revenue which is urgently required, and very largely on the ground of expediency we give the Chancellor of the Exchequer our support on this occasion. I have tried to put our point of view on these various taxes without embarking upon the question of war wealth or a levy on capital, and in the main I think it will be seen that we are not quite destitute of knowledge of the old canons of taxation in this country. Labour stands for the simplest possible system of taxation. We believe that this Finance Bill violates that principle, but we believe at the same time that it is necessary on grounds of expediency and acute public need to pass this Bill. Accordingly, whatever may be our private reservations and our numerous Amendments in the Committee stage, we shall not go into the Lobby against the Chancellor of the Exchequer on the Second Reading of this Bill.

The House has heard with interest the speech which has just been delivered. Though the hon. Member spoke apparently for Labour and in the interests of Labour, as to which I might respectfully say also he rather joined, as far as the manner was concerned, in the criticism by an hon. Member yesterday that he wished that Labour would speak in the national interests rather than in its own interests, I do not think that his speech followed that out at all. I only make that criticism of a remark he made and not on the matter of his speech, which was entirely from the national standpoint and not from the Labour standpoint at all. I listened with great interest to what he said about the effect of heavy taxation upon employment. Surely it is very important that those who are responsible for Labour policy should bear that point in mind. It is impossible to place heavy taxation upon any industry without affecting not only the profits of the employer but also the employment, and, so far as his criticism upon the several duties is concerned, I will say one word later on.

I also listened with great interest to the speech of the hon. Member for Middlesbrough (Mr. Thomson), who devoted a large portion of it to a plea for continuing permanently the land value duties. His expression was, "to sink party differences." I thought it a peculiar manner for carrying out that principle because his speech rather carried me back to the ancient atmosphere of 1909–10 when party differences were perhaps more acute than they have ever been at any other period in this House. I do not think that his speech was a sinking of party differences. It rather struck me as the kind of speech that would be delivered on a party platform in a very heated atmosphere. I thought that he was not extraordinarily kind to the Prime Minister in recalling what I am sure the Prime Minister would wish to be forgotten, and particularly when he referred to the prophecy which was made at that time, no doubt, with a genuine belief in its probable fulfilment that the imposition of these taxes would reduce overcrowding, whereas the imposition of these taxes has reduced the number of houses which would have been erected in the country by some 200,000.

The policy which the Prime Minister was responsible for persuading the country to adopt is responsible.

The Prime Minister, with his usual courage, when he recognised that he was persuaded by gentlemen who, like hon. Gentlemen opposite, from the cradle upwards, never learn anything, recognised where the real responsibility lay. The difference is that the Prime Minister has learned something. These gentlemen have learned nothing, and I do not think that they ever will. I am content to leave it there. I make one other comment on the hon. Gentleman's speech. There appeared to me to be a certain confusion of thought. He made no distinction in the latter part of his speech between the working of the Valuation Department and the land taxes. He appeared to forget that the Chancellor's proposals are to abolish land taxes, but retain the Department. He first of all claimed, quite apart from the land taxes, that the work which this Valuation Department has done—with which I am familiar—had enormously reduced the price which was being paid for land. I think the House did have the impression that the land was now being obtained at its fair value, and, by legislation which was subsequently passed, land can be obtained compulsorily whenever it is required for any public purpose. If land can be obtained compulsorily when it is wanted and obtained at a fair value, what more do you want? If that is the case, as the hon. Member claims, without attributing it all to the land taxes, why spend £5,000,000 in collecting £1,000,000, which is exactly what the land taxes have done, to produce an effect which you can produce without that legislation?

So far as the Valuation Department is concerned, I would like to say a word. The hon. Member was quite wrong in his history. He had not studied his history sufficiently when he stated that the Land Valuation Department was set up in order to value for these taxes. Nothing of the kind. On the contrary, it was Part 1 of the Finance Bill of 1909–10 which destroyed the usefulness of this Valuation Department, which had been set up the year previously by the Chancellor of the Exchequer. The Chancellor of the Exchequer, the present Prime Minister, a year before the introduction of his Budget stated, what was absolutely the fact, that as the State had many transactions in real property and was largely interested in valuations for death duties and other matters which required local knowledge of the value of property throughout the country, it ought to have a Valuation Department of its own to act in the same capacity to the State as a land agent and valuer acts to the private owner of real property, and he set up the Valuation Department for that purpose, and if it had been confined to that purpose and had been developed, so far as the carrying out of those functions required, its usefulness would have been considerable and nobody could have objected to it.

It was the prostitution of the Valuation Department from the simple duty of valuing ad hoc in any transaction in which the State was concerned, to the duty of valuing the whole of the property in the country on all kinds of different occasions, and ascertaining five or six fancy values which no one ever heard of, and omitting the real value, and the putting of the Department to that fantastic use that was responsible for its inordinate extravagance and loss and its uselessness and the waste of spending £5,000,000 to collect £1,000,000. I understand that the Chancellor of the Exchequer now proposes to abolish these ridiculous taxes and retain the Department. If he confines the Valuation Department to the particular object for which it was originally appointed, namely, ad hoc valuations in which the State or some public authority is interested, then I am entirely with him and will support him, but I would suggest that the present Valuation Department is far too numerous and far too expensive for that purpose only. I believe that he has appointed a Committee to inquire as to that point.

I have asked the Select Committee of the House on Public Expenditure, through the Chairman, to be good enough to look into it, and I think that they will find that, for the staff which we propose to retain, there is adequate and very valuable work to be done.

That all depends on what is the staff which it is proposed to retain for the work which they will have to do. I understood from the Budget speech of the Chancellor of the Exchequer that every transaction in real property would still be sent in to the Valuation Department. That appears to me to be quite useless and unnecessary expenditure, involving an addition of from one to two guineas to the legal expenses of every single transaction in real property. It is useless work for which no corresponding advantage will be derived. All that is required is not those figures, but advice from the officials of the Department in any transaction in which the State requires their advice.

A very strong argument was used by my hon. and learned Friend below me on the cumulative effect of rates and taxes, particularly in agricultural districts. He made the case clearly and fully, both as to its history and as to the hardships incurred. In my own personal experience in the rural district in which I live the rates when I went there were 8d. in the £. They are now 11s. That is the sort of proportion which exists all over the country. That is the cumulative burden which has to be added to the Income Tax, which now goes from 6s. to 10s. in the £. In those days the Income Tax was 4d. and the rates were 8d., and the total burden was Is. Now the Income Tax is from 6s. to 10s. and the rates are 11s. Very soon that burden will absorb in the rural areas all profit. In some cases it has absorbed all profit, and the process referred to by my hon. Friend opposite, who spoke from the Labour Benches, is unfortunately taking place. The effect of these flat rate taxes and increases of wages is that labourers who have worked long on the land are now being discharged, and land which in the very bad times, in the nineties, when prices were at their very lowest, could be cultivated is now going out of cultivation, and the men who could and did cultivate it and live happily upon it in those days of low prices and low wages are now unemployed because of the high flat rate burden and the high wages which are imposed on rural areas which they are utterly unable to bear. The land, even with the present prices, cannot be cultivated at a profit. I hope that hon. Members will bear in mind the effect of these flat rate taxes and wages upon the weaker industries.

We have heard a great deal from the point of view of the co-operative societies in reference to the Income Tax Commission. I notice a curious difference between the attitude of the representative of the co-operative societies before the Commission and the attitude of their representatives here on one point. My hon. Friend opposite will bear me out when I say that before the Commission the argument which he used was also used, that the profits of co-operative societies were mutual trading and were not, therefore, liable to Income Tax at all in their structure, and the representative of the co-operative societies told us that they placed no value, or very little value, upon the exemption which they had obtained from this House because they said that even if they had obtained no exemption they believed that the Courts would have held them exempt from Income Tax because their profits were the result of mutual trading and were not taxable profits at all.

That seemed to me to be much stronger ground to take up than to come to this House as is argued by hon. Members who represent co-operative interests and ask for a special exemption which is of no value to them at all. That creates great misunderstanding, because the feeling among the trading community is, "Here is a body of persons who are doing an enormous trade which, if in private hands, would pay heavy taxes. Those persons who are carrying it on are receiving just as much protection from the defensive forces of the Crown. They are just as much interested in all that is spent on the maintenance of our national fabric and yet, although the private trader pays a great deal, they are exempt." That is a misunderstanding. The statement that was put to us was not put in the House, but I wish it had been put in this House. That is where the misunderstanding would be largely met. If co-operative societies based their case, not on special exemption given by Parliament to which traders consider they are not entitled, but on the fact that they are mutual traders, just as a club is a mutual trading society, and that they are not to pay Income Tax on their property because Income Tax is not a tax which can be laid on mutual trading, then they are on stronger ground and the misunderstanding will be removed.

When you come to the Corporation Profits Tax, it was distinctly stated to the Commission by the representatives of the societies that if there were a Corporation Tax, as there is in America, they would be perfectly willing to pay it. I do not think that their representatives before the Commission, who spoke for the whole of the co-operative societies, can be given the go-by in this House and be told that they spoke without any authority whatever. Yesterday an hon. Member who spoke from the Labour benches read certain words from a law recently passed in the United States, and having read them, he claimed that they exempted co-operative societies from the Corporation Tax. I have read those words very carefully, and though I am not a lawyer, I cannot read that meaning into them. I do not believe that cooperative societies, as they exist in this country, are exempted from that tax by the wording which was read to the House. I am not dogmatic upon it at all, but I wish to make that statement. As to the Corporation Profits Tax, I endorse what was said by my hon. Friend the Member for York (Sir J. Butcher). It seems to me to be a very mischievous tax. It is rather curious, in the light of the immense labours which the Income Tax Commission bestowed on the task of trying to apportion the burden of Income Tax according to ability to pay. Practically the whole of our time for a year was taken up in that effort. There was one part of the task in which we almost sweated blood, and that was in the attempt to avoid the double Income Tax. What is this tax but a double Income Tax? It is an Income Tax without all those apportionments according to ability to pay which we spent a year in trying to arrange; It is a new tax which has two inherent vices. It is a double Income Tax and it is in no way apportioned according to ability to pay.

What is the use of askinng a Commission to spend a year in going into a complicated question of that kind and then imposing this new tax, which entirely gives the go-by to all these principles? It has been suggested that it is a temporary tax, and an hon. Member has said that he approved of it as such, but the Chancellor of the Exchequer distinctly said it was a permanent tax. The tendency of all permanent taxes is to grow. They begin at 5 per cent., and they go on to 10 per cent., 15 per cent., and even 20 per cent. There seems to be an idea that a new tax, if begun in a small way, can always be increased. This is a most vicious tax. It seems to me that it may be taken when there is really no profit, or hardly any profit at all, in the case of companies. It frequently happens that a company which is brought near the line of profit-making will be able to pay dividends on its debentures and preference shares, but will have left only a small sum which must go to reserve, and not one penny will be available for dividends for the ordinary shareholder. Such an amount, which can be placed only to reserve, will be liable to this Corporation Tax up to 10 per cent. of its value. That seems to me to be very unfair to the shareholders. In the Excess Profits Duty I see only one merit, though it is a considerable merit It is that the tax is so vicious that it cannot possibly be permanent. I commend that to the critics of the tax. Other taxes which they are so anxious to try to find in substitution for it, such as the Corporation Profits Tax, are likely to be permanent taxes, and in that way will be much more injurious to them than Excess Profits Duty.

As to the general effect of this heavy taxation, let me say that, from a practical point of view, I have looked at the figures of revenue and expenditure which the Chancellor of the Exchequer has given us. I am sure the House has never had a clearer statement than that in the White Paper which was circulated after the introduction of the Budget. I notice that the revenue may broadly be divided under four heads—£343,000,000 of indirect taxation, £682,000,000 of direct taxation, £53,000,000 for postal services, and £28,000,000 miscellaneous. On the expenditure side there are—National Debt service, £345,000,000; national defence, £230,000,000; War pensions, £123,000,000; social expenditure directly for the benefit of the working classes and going straight to them, £228,000,000—

There is a margin both ways in the matter of taxation. I come next to old age pensions.

Surely, if you are going into the question of old age pensions you must refer to some of the Government pensions. What is their total?

That does not touch my argument. There are many other forms of expenditure. I was merely stating that £228,000,000 was spent under these particular heads. I think these facts have to be faced and understood. Two hundred and twenty-eight million pounds is directly spent upon social reform, and I think the meaning of the words "social reform" is clearly understood. Then there are—Civil Services, £68,000,000; Ministries of Munitions and Shipping, £43,000,000; and there are other small items. Including £20,000,000 of Supplementary Estimates, they make a total xpenditure of £1,177,000,000. The total revenue, from which I exclude the £300,000,000 to be obtained by the sale of war stores, is £1,111,000,000. If you deduct the £1,111,000,000 taxed revenue from the total expenditure of £1,177,000,000, it leaves you with a deficit, roughly, of £65,000,000. Looking into the matter as I should look into the affairs of a private business, I should say, "Here are £65,000,000 to the bad. I have got £300,000,000 from another source, which is capital, but some of this is also capital, for instance, the £36,000,000 loan to Allies, and other items. Therefore, I must set one against the other. I have £300,000,000 this year to meet a deficit of £65,000,000, which gives me a margin of something like £200,000,000." I should then look to see how much of this expenditure of £1,177,000,000 we are going to get off in future years. The Chancellor of the Exchequer said yesterday he thought it would go down by about £200,000,000, and his figure is pretty well substantiated, as far as I can make out. If we accept it, that would mean that our deficit of £65,000,000 now, as between taxed revenue and actual expenditure, will, by reducing our expenditure by £200,000,000, be converted into a surplus available for debt reduction of about £115,000,000.

That is how we stand now, it seems to me, and it is not a very satisfactory position. One hundred and fifteen million pounds is only about half of what the Chancellor of the Exchequer is devoting to debt reduction at the present time. That £115,000,000 can be increased in one or two ways—either by increasing taxation or by reducing expenditure. There is a third way, and that is by the wealth of the country so increasing that taxation at the present level will produce a larger revenue. That third way seems the most hopeful, if it can be carried out. It really depends upon whether the country can get over what it is now suffering from, the two evils, the twin evils, one largely dependent on the other, a sort of double pneumonia—under-production and over-taxation. The second, over taxation, depends largely on the first. Over-taxation must follow as a consequence of under-production. Perhaps one of the most unfortunate statements ever made was that made by the Prime Minister when he said that after this War this was a country which was going to be fit for heroes to live in. I hope it may be so, but not yet; we have not finished with the War yet. We have the most difficult consequences of the War still to get over, and we are fighting now to restore our industries and our taxable capacity just as hard as we were fighting the War. I appeal to hon. Members opposite when workmen went to the War and while the War was actually going on did they say, "We are only going to work eight, or seven or six hours in the trenches." Was that the attitude they adopted, and would the War have been won if they had done so. What attitude do they adopt now in this War, and why do they adopt it now when they did not adopt it then? I am all for good wages for good work, but I am not for reduction of output and reduction of hours when we cannot afford it, and when increased production is our only road to reduced taxation, and to revive our industries by which everyone in the country has got to live. It appears to me to be absolute madness in this time of struggle for the maintenance of our existence that we should be thinking only of reducing hours and of spreading the work over the largest number of people whereas we ought to be doing everything we can to increase output and to increase what we may send away in real goods, for it is reality we want. Look at the coal position. What is the country suffering now? We are sending out of the country—

:I am afraid the opening of this subject would raise a discussion beyond the Bill. Coal is a hot subject.

I was trying to deal with the question of the financial position and how we can best bear this burden of taxation.

I was only afraid that the right hon. Gentleman's remark might mean a diversion to the subject of coal.

I think hon. Members understand what I mean, and the facts are well known to everybody. I would only add one further consideration, and that is much of these questions of finance and wages and taxation which we are discussing now are shams, and not realities. The wages which are being paid to-day and the money which is being raised in taxes are not real wages and real money, but sham wages and sham taxes. The hon. Member for Spen Valley (Mr. Myers), who spoke yesterday, said that there were certain iron laws which they had succeeded in breaking. They will never break those iron laws—never, never, never. They may break down human institutions; they may destroy employers, and they may destroy the country's social fabric and industrial fabric, but not one inch can they move any of those iron laws imposed on us by a higher Power. One of those is that when you pay for a thing you can only pay for it in real money. The wages which are being paid, are they real— they are a sham. They are wages which are paid nominally in money, but the real wages are no higher than they were, and you cannot make them, as the iron law is against you, and you cannot break it and alter it. Unless you produce the goods so that you may get real wages out of the goods produced your wages still will be sham wages. You are simply trying to cover up the matter by putting another sham veneer of a few shillings a week on top of those you have got. It is the same with the taxes. The taxes are levied in enormous sums nominally, but they have got to be compared with real things.

I suggest to the Chancellor that the greatest justification of his policy in imposing this enormous and almost unbearable burden of £1,400,000,000 is that since it has been incurred in the form of sham money he will be reducing it with sham money in this time of inflation. Every year that we wait you will have to pay off this large debt less in inflated and more in real goods. That is my criticism of the suggestion quoted yesterday from Sir Edgar MacKay that the Excess Profits Duty should be converted into Bonds repayable at some distance of time. It is better to pay it off now if you can in the present value of money than to postpone payment to future years a long way ahead, and the further ahead the worse it will be when money will have reverted more to its real relation to the goods in which those taxes must be paid. I do think that the taxes are almost unbearable. But the task of the present Chancellor of the Exchequer, and indeed of all modern Chancellors, seems to be a simple one. It seems to be to persuade the majority who pay no taxes that he has invented some new tax which the minority who pay taxes already can also pay without feeling it. That is really what the art of the Treasury seems to be to-day. All these taxes are cumulative; they all fall on the same people and they are all drawn from the same source. An hon. Member opposite named some of them and they are all familiar to the House, and now some more are to be added and the whole burden is such that it can hardly be borne. These flat rate taxes are crushing the life out of the weaker industries. This matter goes to my heart and I speak most feelingly upon it. I have cultivated poor land for thirty years and have kept plenty of people on it who were satisfied with their wages and with local conditions. All through the 'Eighties and the 'Nineties we kept them and provided them with what the country does not provide now, good and cheap houses and gardens, and every facility for living in the rural districts. All through those bad times we were able to do that. And why? It was because we were under natural laws and free to take advantage of the opportunities which our natural conditions allowed us. We are no longer allowed to do that. You take advantage of the natural conditions of the country to produce something cheaper while there is a central flat rate which you have to follow, and which will make your expenses greater than the receipts you can get out of that poor land. Therefore the land goes out of cultivation and though those prices are four or five times what they were in the 'Nineties, that occurs because we have got man-made control instead of the infinite elasticity of natural laws which allowed every man to do what he could under the best conditions which nature gave him.

The very incisive speech of the right hon Gentleman who has just addressed the House carries my mind back to the Budget of 1909. He then denounced the present Prime Minister with the same severity with which he has denounced the present Chancellor of the Exchequer. I never expected to hear it. I am one of those rare specimens of political humanity, an old-fashioned Liberal who is a believer in the financial tenets of Mr. Gladstone. I propose to ask my right hon. Friend, the Chancellor, to follow the financial example of Mr. Gladstone and really reduce expenditure. I congratulate the right hon. Gentleman on one thing, and that is, that he has followed Mr. Gladstone's policy as regards Ireland and has left the old position and is now endeavouring to carry out that policy. We really must return to the old sound finance. I remember the time when I first came to Parliament if there was a proposal to spend, say, £100,000, Sir William Harcourt would be up in arms against it, and now it is not £100,000 but £100,000,000, and that hardly turns a hair in the House of Commons. These new notions that the Government can produce happiness and prosperity are to me anathema. The less the Government has to do with industry and the less they impose taxation the better for the country as a whole. If you are going to have a new world, as was promised us at the last election, why of course you must pay for it. The right hon. Gentleman (Mr. Pretyman) has spoken strongly against the Corporation Tax and the Excess Profits Duty, but if you will have this Government expenditure you must foot the bill and there is no way out of it. Therefore I say that we are on the wrong tack and instead of imposing this enormous load of taxation, let us cut down expenditure. We seem really to have lost conception of what a budget should be. I want the Government to get it into their heads that this country is not going to be saved by the Government and Government Departments. The new Government Departments all cost money, and are they worth it? I very much doubt it. It cost us £1,000,000 to disestablish the Welsh Church. It would, I think, be worth very many million pounds if we could disestablish Downing Street from controlling industry and Whitehall. I think even the Chancellor was wrong last year when he abolished three millions of revenue. We could afford that in the old days before the War, but to-day we cannot.

7.0 P.M.

My right hon. Friend (Mr. Pretyman) also spoke of the expenditure of last year, but it appears to me that that is quite beside the mark. What we have got to go back to is the expenditure before the War upon armaments and other matters. The Budget before the War was for two hundred millions; today it is for fourteen hundred millions, seven times as much. I do not wonder at it being said that the burden is almost insupportable, and I think it will have a very crushing effect. Let me take the fighting services. The Estimates for the Army and Air Force this year were not Estimates; they were in my judgment insults to the House of Commons. There is a sum of £146,000,000 for the Army and Air Force, and that was £28,000,000 in 1913. How can my right hon. Friend the Chancellor come down and as an economist consent to such an Estimate as that? The Navy is £84,000,000 and before the War £46,000,000. Yet the great menace of the German fleet has gone. All this expenditure is unproductive. We must have security, but surely in these days we do not want to spend this enormous sum of £230,000,000 a year on the fighting forces. Yesterday I put a question about the Admiralty, and the Chancellor of the Exchequer, who has been a Civil Lord, will understand what I meant. You are employing in the dockyards to-day 84,000 men, whereas, before the War, only 56,000 men were employed. All these men have to be paid out of these new taxes. What justification have you for this employment of labour on unproductive work? It all has to be paid for; to do that taxes must be raised, and those taxes are crushing the very vitals out of the country. I made a suggestion when the Naval Estimates were up, but there were very few Members here. Nobody takes any interest when the House of Commons is voting money; but they all take an interest in the Tax Collector when he comes along. Take education. £19,000,000 was spent on it before the War, and the Chancellor of the Exchequer told us yesterday that it is going to cost £70,000,000. What real justification is there for £70,000,000 a year being spent on education when £19,000,000 a year sufficed before the War?

Or whether he wants me to answer now. I do not want to interrupt him. With regard to education, the great increase in the cost is in respect of the salaries of teachers. They were underpaid before the War, and. without a very large rise, they would of course have been quite shamefully under paid after the War. That expenditure is the direct result of legislation passed by the House of Commons, and you must alter the legislation if you want to reverse the course of expenditure.

My right hon. Friend very courteously, as he always does, explained that rise in the amount devoted to education. The Education Estimates before the War were £19,000,000, and he said that they would rise to £70,000,000. That is four times as much or very nearly; but the teachers' salaries have not been increased four times over. Where has the money gone? I am not asking this rhetorically; I want to know.

I really cannot conduct a Debate on education expenditure by interruptions.

The details should come on the Education Estimates. The right hon. Gentleman (Mr. Lambert) is quite right in drawing attention to the broad figure, but not in asking questions on details.

I quite agree, but I was not asking any questions on detail. I was simply asking where the £70,000,000 a year to be spent on education was going. As the right hon. Gentleman opposite said, these rates are coming upon us with enormous and crushing severity in the rural districts. They are hampering enterprise, and no one to-day will build a house or go into anything without counting the rates. There is a general feeling that the subsidies that the Government have spent are really of no advantage. To my mind they really only cover the poverty of the land. I wish the Chancellor of the Exchequer to be a. Chancellor like the late Mr. Gladstone, Sir William Harcourt, Mr. Goschen, and Sir Michael Hicks Beach. In those days the Treasury was the watchdog. In recent years, and I am sorry to say during the time that I was a Member of the Government, it became a kind of dispensing fairy, dispensing money all over the country. Is the Chancellor of the Exchequer satisfied with regard to his housing finance? How is that going? What sort of liability do you propose to pile up on future generations? Has anybody any real realisation of it? Has my right hon. Friend? I do not wish to cross-examine him, but I have to put these points, and if I put them a little incisively I hope the House will forgive me. Take the case of a house costing: £250 before the War. It will now cost £1,000. Who is going to bear the increased cost? It will have to come from the Exchequer. People imagine that the Exchequer is some kind of Providence, that money or gold or Bradburys descend from heaven into the Chancellor of the Exchequer's pocket. In these matters we must be careful lest, by these subsidies to a favoured few, we inflict great hardship on the great mass of the nation. That is the point I want to put. It will be said that I am more or less of an obscurantist, and that because I oppose what is so glibly talked of as "social reform," which means Government expenditure, I am unprogressive. Quite the reverse. I believe that all this expenditure will fall with crushing severity on the labouring men. My hon. Friend behind me (Mr. W. Graham), who made an admirable speech just now, is a real economist in these matters, and he says it. I do not think my hon. Friend who interrupted believes that I am ironical. I am not in the least, but I do feel for the men who will be thrown out of employment by this extra taxation. Therefore, I want the Government, as I always hoped a Coalition Government would, to have a little courage. Let them tell the people the truth about these things. Do not let them keep trying to put on plaster. The day of reckoning is bound to come. I have noticed here that whenever expenditure is proposed there is hardly anybody present to protest against it. [HON. MEMBERS: "Oh, oh!"] Well, how many Members?

Two do not make up the seven hundred Members of the House of Commons. I would like to combine with other Members who would really come down to the House and vote against the Government—it is no use talking about it—on this question of unproductive expenditure. The Chancellor of the Exchequer has great courage in imposing taxation. In fact, to me, the change in this financial legislation from the time when I first became a Member has been perfectly extraordinary. He proposes to raise something like £70,000,000 a year on drink. Why if, in the last two or three Parliaments, any Chancellor of the Exchequer had proposed to increase the duty upon beer from 70s. to 100s. per barrel, the whole of the lobbies would have been crowded with the liquor interest. Now I do not even see my right hon. Friend the Member for the Ayr Burghs (Sir George Younger) here; he is not taking any active interest in it. I think it is perfectly marvellous, and I hope it is as a result of the Coalition Government that we are able to raise this enormous taxation without anyone appearing to take any notice of it. I hope my right hon. Friend will not weaken on the motor taxes. If you do not have taxes to help the rates in keeping up the roads, there will be no roads for the motors to go over, and the rural ratepayers will not stand it.

May I say a word on the Land Taxes? I stopped up all night here for many nights voting for those Land Taxes. Apparently they have not been so productive of revenue as to provide enough for one dreadnought. Still, I regard them almost as a stroke of Providence. Those Land Taxes in the Budget of 1909 brought the Liberal party back into power during those years. How fortunate that the Liberal party was back in power on the 4th August, 1914. Supposing that the present Prime Minister, whom you now worship, and whom you then cursed, had taken the wrong turning in 1914. I do not know what might have happened. Therefore I regard the Land Taxes as an act of Providence: they returned the Liberal party into power, and brought the present Prime Minister in as an incomparable War Minister. But, though the Chancellor of the Exchequer proposes to scrap these taxes, I sincerely hope he will not allow the unearned increment in land to go untaxed. It is quite indefensible that any person or private individual should be allowed to hold up land against the community. Industries ought not to be stifled. Land owners have got their rights and privileges, but the community has rights also. I will conclude by saying to the Chancellor of the Exchequer that he has been very courageous in opposing taxation, but he has not had much backbone in cutting down expenditure. His reputation for the future will depend, not upon the taxation he imposes, but the expenditure which he saves the nation.

We are now approaching the conclusion of the sixth day on which we have discussed the Budget, and I think, on the whole, the Government have no cause for complaint at the reception that has been accorded to their proposal. No doubt, in detail, many a point will be fought keenly on the Committee stage; no doubt, in detail, it may be possible for the Chancellor of the Exchequer to meet the objections of his friends by making concessions; but, so far as we have got, I think the general appreciation that the House has shown to him is remarkable, in recognising that, however much hon. Members may disagree with this or that detail or wish to have it amended, they yet see that the Budget Budget as a whole is a strong, sound and honest one, and is well prepared to effect the object it has in view. I do not desire to detain the House long and I do not propose to encumber my speech with details. I wish rather to consider the Budget as a whole, when I have touched for a minute or two on one or two points that have been raised during the discussion, and to which no previous reference has been made from this Bench. My hon. Friend the Member for East Grin-stead (Mr. Cautley) said and my right hon. Friend the Member for Chelmsford (Mr. Pretyman) raised a very important matter which has served as a subject of Debate on more than one Address in this House during the years that I have been a member of it. No one can be surprised or can find fault with them that on this occasion, and now that we are emerging from War conditions, they should wish to bring to the notice of the House and of the Government a subject on which they feel very strongly. I remember quite well the pledges that were given that this subject would be attended to at a very early date, but I have been so long a Member of this House that I recognise that there is a very strong family resemblance between the most hones) political pledge that can be given and the ticket that you buy on the Chatham Bail-way enabling you to cross the Channel on the way to Paris. Every ticket promises to get you to your destination, "wind and weather permitting," and very often when a promise is made politically in perfect good faith, the wind arises the storm comes from some unexpected quarter, and the passage is delayed although it very often happens that the vessel ultimately gets into some port, if not always the port for which it set sail.

I do not wish to take up the time of the House going into details on this subject, but while agreeing very largely with what the hon. Member for East Grinstead said, and while admitting that he put his case perfectly fairly, as he always does, yet he omitted the other side of the case, to which I think the attention of the House should be called for a few moments. We all know, especially those of us who are subject to rating—and that is, after all, most of us—that rates have increased, and are increasing, and probably will increase, but we also know that, great as has been the increase in the rates, it is a very open question whether the increase in the rates has been any greater proportionately than the increase in the taxes, and I think it is only fair to remember that, although no readjustment has been made, yet the State has contributed largely and generously to local authorities, as I think I can show in a moment. In 1914—and I take that year as being the last of the pre-War years—the State contributed in grants £20,000,000 to the local authorities for the purposes of education, and in this year's Budget they are contributing £52,000,000. For the police services—I am speaking here of grants—in 1914 the State contributed £1,500,000, and in this year £11,000,000, and similarly in a less degree with such subjects as tuberculosis, maternity, reformatories', mental deficiency, and roads. In every case considerably increased grants are being given, and whereas all these grants amounted in 1914 to about £24,000,000, in the current year they amount to £77,000,000, or an increase of over 200 per cent. Add to that the general grants from the Local Taxation Account, which is called the "whisky money," which produced £9,500,000 in the year in which War broke out, and which now we calculate at £10,500,000. So, although my hon. Friend may feel that the need for readjustment is greater than ever, yet I maintain that pending readjustment the State has been contributing with liberality to the expenses of the local authorities, and I would remind him of one more thing too. The position to-day is very different from what it was in 1914, because the State now has to bear the whole of the burden of the War debt and of expenditure arising out of the War.

I do not think that at this stage I will speak at any length on the question of taxation, but I would remind my hon. Friend that, with regard to the farmers, one result I very much hope of putting up the Schedule B to twice its face value would be to drive them into the ranks of Schedule D, because when that change was made in the Budget two or three years ago, I said that in my view, for reasons which I need not give now, Schedule B is an anachronism, and it would be only fair if arrangements can be made by which the whole of the farming industry can come in as other industries do under Schedule D. I know the practical difficulties, but I am not without hope that those difficulties may be met. For consolation to my hon. Friend, I would remind him that if he feels that that section of the community for which he speaks is paying too much in Income Tax, he may remember that they are not paying Excess Profits Duty, that they are not going to pay Excess Profits Duty, and that they are not included in the Budget as people on whom the new Corporation Tax will fall.

Will the hon. Gentleman make that clear? I take it that any farming operations that may be carried on by a company or a corporation would be liable.

I agree, but those are in nearly every part of the country exceptions, and I was speaking of the farmer as an individual. I do not propose to say anything more about that, except to assure my hon. Friend that the Government are desirous of giving this matter consideration when they have time to do it. I cannot give a pledge to-night, following his speech, that this matter can be dealt with immediately. The amount of work that lies before us yet in matters arising out of the War renders it impossible to give a close pledge now, but as soon as the Government have time they will look into this matter in the light of the very altered circumstances that exist to-day.

Before speaking generally on the Budget as a whole, I should like to make a few remarks bearing on what my right hon. Friend who has just spoken (Mr. Lambert), the last of the old-fashioned Liberals, said with regard to expenditure, and I cannot help noticing that throughout this Debate there has been an under- current of feeling that expenditure is the peccant spot, and that no good thing can come from this Government in regard to the financial position of the country until we make an attack with an axe upon expenditure—[Cheers]—I am very glad to hear those cheers, because it shows that in any work which my right hon. Friend the Chancellor of the Exchequer or I may attempt to do we shall have the support of the House. But I think it is important to get the mind clear as to what expenditure you can go for with an axe. I do not propose to recapitulate the examples given to the House before, but I propose to give a very few figures which I have had prepared to meet some questions that have arisen in my own mind on this most important subject. I think there is a good deal of loose talk on this matter, loose talk that does not arise from any mala fides of any kind, but merely from the fact that it is so difficult, as any one who has sat in this House more than a year or two will recognise, in the mass of figures that are presented of Government accounts, to find out really what is expenditure, what is expenditure that can be controlled, and how the expenditure at one date is comparable with that at another date. My right hon. Friend who just spoke was speaking about the figures provided in this year's Estimates for the fighting services, and the figures which he gave were perfectly correct, but what I want to do is to examine these figures and to take from them that portion of the Estimates which arises solely from the position in which we find ourselves with the War not yet completed.

The expenditure on the fighting services has been gravely affected by the delay which has occurred, from various reasons familiar to Members of this House, in concluding peace with the Ottoman Empire, and it has been necessary to keep considerable forces and garrisons in different parts of the world where perhaps, owing to difficulties of transport and so forth, it is more expensive to keep them than it would have been to have kept them nearer at home, in Flanders and in France. The reason why I want to find out how much of these charges is due to these special causes is that I want to make a comparable estimate between the figures our fighting services and Civil Services cost to-day and what they cost in 1914, and then to throw out, apart from that, the figures where we may be able, as every hon. Member wants, to get in with the axe. Now, of the £230,000,000 which appear in the Estimates this year for the Army, the Navy, and the Air Force, £95,000,000 are due directly to services connected with the prolongation of the War, leaving a net figure of £135,000,000, against a net figure in 1914 of £70,500,000, and that net figure in 1914, of course, was only for the Army and the Navy; there was nothing included in those Estimates for the Air Force as we know it to-day. With regard to the Civil Service Estimates, that strangely elastic title includes, with the Revenue Departments, a sum of no less than £557,000,000, and out of that £205,000,000, to which I shall recur shortly, are made up of sums which have been alluded to more than once by my right hon. Friend, sums which are distinctly War charges, but which are still going on —that is why I am going to say a word about them in a few minutes—such things as the subsidies to railways, and bread, and coal, grants to soldiers, loans to Allies, and such subjects as that. They have been given in detail by my right hon. Friend on more than one occasion; but if you take off that £205,000,000, you get £352,000,000, and if you add to that the £20,000,000 that my right hon. Friend put in his Budget for contingencies, and if you add the fighting services, you then get up to £507,000,000, as against the corresponding figure of £168,000,000 in 1914 for Civil Services and fighting services.

To get our comparison, however, it is only fair to deduct another lot of subjects, and those are the charges that we have to face to-day that we owe to the War, which are new charges since 1914, but charges which there is no possibility, or very little possibility, to-day of cutting down. They amount to £152,000,000, by far the largest amount of which is £123,000,000 for pensions. The other new charges are the £15,000,000 given, I believe, at one time as the estimate of the post-War Air Force, and the money that has been given to the police and for transport and certain services in connection with the Ministry of Health. Subject to those deductions, you get the cost of all the services we had in 1914. Including, therefore, the whole of the Civil Service and all that term stands for, the Revenue Departments and the fighting services, you had a figure in 1914 of £168,000,000, and to-day it is up to £355,000,000, or an increase of about 110 per cent. That increase is very nearly what you would expect, but, remember, it includes £20,000,000 for contingencies of my right hon. Friend, without which it would be a lower figure, and, remember also, it includes all the extra wages that are paid throughout the Civil Service, including the Revenue Departments, the Post Office, the extra payment to the soldiers and sailors on a greatly increased scale, and the extra wages that have been paid throughout the dockyard and arsenal services that come under the Army and Navy. And, as my right hon. Friend reminds me, there is also the extra cost of raw materials, where the rise has been considerably greater than in wages, and the fuel for the heating and lighting of all the Departments throughout the country.

When you get down to those figures, you see that you have no increase beyond what you could have foretold, no increase where there is any possibility at this moment of substantial reduction. You have no possibility of substantial reduction at the moment in the £152,000,000 of which I spoke a moment ago as the new services. That means that the only region in which we can get the axe to work is the £205,000,000 of charges which are still left from the war services. I can perfectly understand the impatience and irritation of the country at what they consider the slow rate of demobilisation in these services, but hon. Members know what these items are. They have seen that the Government is trying its very best at present to get rid of all subsidies. We have got rid of some subsidies, and the Government has given an undertaking to get rid of the remaining subsidies at the earliest moment that it is possible. We shall do our best, speaking for the department which I have the honour to represent, and I feel sure that the Government will do its best to make every reduction possible in this one group of subjects, which is the only group that lends itself to a really radical reduction. I apologise for having quoted so many figures. No one knows more than I do how confusing figures are when used in Debate, but I thought those figures would be of use. They fall into line with the direction in which my own thought has been moving for some time, and I felt sure that the House would be glad to have them.

I have a few things I want to say to the House, before we come to a decision on this Second Reading, on the Budget as a whole, and I hope to meet a great objection that I heard in many speeches yesterday and to-day as to the drastic steps the Government are taking in attempting to pay off debt. I recognise that many Members in this House have felt that we are attempting too much, that we are piling the last straw on the camel's back, that we are robbing ourselves for the benefit of posterity, that we are paying much higher taxes per capita than are being paid by any other country in the world, and I want to say, if I am able to express myself clearly, why it is I think we are right and hon. Members who hold those views are wrong. The reasons that have actuated us are two-fold, and both have weight. The first reason is, as I said in a previous speech I made on this subject, rather in its nature of a psychological. I do not for one moment accept the view that what may be done in any other country should lay down a standard in finance for what we should do in this country, and I would remind hon. Members that figures quoted during the Debate of the per capita amount of direct taxation are not really very helpful, because in this country direct taxation for years past has been moving along at a greatly accelerated rate to its motion in any other country in the world. In most countries even now indirect taxation is preferred, and to get comparable figures you would have to aggregate the direct and indirect taxation.

I have digressed for a moment. Let me come back to the psychological effect. The consciousness in the world that the English people is willing to tax itself this year, and with no immediate prospect of relief to tax itself as is proposed in this Budget, will have a very great effect in making the world realise that we are going to set our house in order, and it needed something heroic to make it plain. Someone in Europe, for the benefit of all the other countries, had to set an example. European finance is very sick at present. No country has yet had the courage to face the situation as we are facing it. If any one country in Europe was to set an example, to show the way, the only safe way for the other countries to follow, that country had to be England, with its traditions of sound finance, and with the example that it has shown in former years of being able to come through and emerge from any crisis that the fates might bring upon her. I believe that a Budget of this kind is essential, not only for the sake of example, but if we are going to see—I was going to say in the near future, but in the future—lower prices and cheaper rates for money. Those things might come in time of themselves, but I do not believe that they will come for a very, very long time unless we take such steps as we are now recommending the House to take.

Let me pass on from that to a subject that I will develop at a little greater length, although I hope not much greater length. Why on other grounds are we making these preparations for the reduction of debt? This is the reason: Let me put it first of all very crudely, and in a few words. We have borrowed a vast number of pounds that are worth 10s. a piece; let us buy them off while they are still 10s. If I may develop that for a minute or two, while money still preserves the same amount of purchasing power that it had when we made our loans, and while trade is good and the money is being made, it will be the rankest folly not to take that money and to get rid of as much as we can of the depreciated money. We are not benefiting posterity and injuring ourselves by doing this; far from it. We are doing ourselves good, because when the slump comes—and come it will—and prices fall, the less debt we are saddled with on the old basis of money values, the better. Benefit will accrue directly to nearly every one of us in his own lifetime, and there can be no greater fallacy than to think that in making this great sacrifice, which we are asking the House to do, we are going to benefit posterity at any cost to ourselves. We may be benefiting posterity, but we are benefiting ourselves still more. When I speak about the fall in prices, deflation, if it came too rapidly, might cause a very great disaster in this country. It is very important in deflating that you should puncture your tyre with a needle, and not cut it open with a pruning knife. You want the air to escape slowly. Or, if I may use another metaphor, we have built up a loftly card-house by inflated credit, and the Government is endeavouring to reduce its dimensions by delicately removing one storey at a time, hoping to get it down to the ground floor before the gale comes and blows it all to pieces. I am not at all sure that heavy taxation at this critical period is not a very good thing, in so far as it prevents undue speculation, which would lead to further inflation in business, because the greater the inflation and the greater the speculation, the more liable we are to have a panic, and the more liable we should be, when that panic came, to have deflation coming on us with such rapidity and with such a storm that it might carry everything away before it.

I want to offer, if I may, in conclusion, one or two remarks that I feel I must put before the House, because the matter is one which has been in my mind, and I am sure it is in the minds of a great many Members, and I think it will do no harm to ventilate it here. I know as well as any Member of this House—and the Chancellor of the Exchequer knows—all that is to be said about the Excess Profits Duty, and it is our hope that we shall find that the new tax which he proposes, the Corporation Profits Tax, may be so examined in this House and so fitted for its work in the future as a taxing instrument, that it may in turn—I myself hope at no distant time—take the place of the Excess Profits Duty, which has, I think, possibly served its turn for the country. In this connection, however, I would say this: in normal times there could be no worse feature of a tax—and this is, to my mind, one of the bad features of the Excess Profits Tax, and I wonder it has not been commented upon—no worse feature in a tax than in being graded severely up or down in huge jumps every year. For the first time in our history —through the Excess Profits Duty during the War, and now in the Corporation Profits Tax—there has come into existence taxes on business as such, and not on individuals. It is very important to realise that a permanent tax on business may do a good deal of harm unless it is managed with extreme care, and, except in cases of need, sudden and violent changes in its rate are not made.

What causes me anxiety at this time— and this is a subject upon which we are very imperfectly informed, and probably shall not be well informed for some few years—I feel great anxiety as to the capital that will be available in this country, in the event of very high taxation, for industry and the needs of the country in the years to come. Cheap capital is the most essential thing for this country. True capital only comes from one source—from abstenance and savings. What is the country saving to-day? What is the country likely to save? This is where I feel anxiety. I take the three classes of the population. I take, first, the great working class. Among that class, as among other classes, there is now working that wonderful movement of National Savings Committees, which are doing some of the most valuable work, not only for the education, but for the financial good, of the country that has ever been done. But what I wanted to say was this: that you cannot, looking apart from what that movement may be effecting, for any great contribution to the savings of capital from the working class at the present time, to whom additional income has gone in the last two years, and for this very simple reason: that it is only natural, and I believe it is only right, that as the bulk of the working classes find themselves with larger incomes, they should be able to enjoy, as many of them are now doing for the first time, more fully for themselves and families, better food, better clothing, and more opportunities for the enjoyment of life than they have had in the past.

Take the middle class. You have there a class which is between the upper and the nether millstones. Whatever the middle class may have saved before the War, it cannot save it now. For the purpose of saving and contributing towards the reservoir of capital which the country need you may write off the middle class. Take the rich class. You have to remember that the incidence of Income Tax and Super-tax now is so great that there are many rich people the whole of whose surplus, if they continue to live as they did before the War, is now absorbed by the taxes. Their only chance of saving will be to cut down their expenditure, to live in smaller houses, to give up their country house, or whatever else it may be. You then come to the very wealthy people, who have a very large margin over and above what taxation takes from them. Yet even to-day taxation is taking from them a considerable fraction of what surplus they have, so that whatever surplus they may have to go into the reservoir of wealth, which may be comparatively considerable, is yet, I think, a fraction of what they had before the War.

The reason I am putting these considerations before hon. Members is this: the time may come when there will be a fall in prices, and then there will be no result from the taxes on business and industry. That, to my mind, is an additional and strong argument that to-day, while there is the money, and while some of the debt can be repaid at the same value as existed when the debt was made, more than ever we should be foolish to vote against the proposals of the Chancellor of the Exchequer, and say, "No, we will postpone to some future date what the Chancellor is asking us to do to-day." In conclusion, I would only add this. I do not know whether the House will feel that after the discussion which has taken place on the Resolutions and the discussion we have had on the Second Reading, hon. Members are prepared to come to a decision. I would, however, make an appeal to my hon. Friend who moved the Motion for the rejection of the Bill. He made, as he always does, an extremely able and eloquent speech. He gave us his criticisms of the Budget with perfect fairness. I venture to hops that, having made this protest, and having in reserve, as he knows he has, the Committee stage on which he may dispute each single proposal as it comes along, or put forward his own Amendments, he may agree to our proposal and not divide the House. I believe a unanimous vote on the Second Reading of this Bill will have a very great effect on the world outside. A vote in favour of the Second Reading commits no Member to every detail in the Bill, but preserves his absolute freedom to take any course he likes on the Committee stage. It does mean this: that he believes in the principle that has guided the Chancellor of the Exchequer in asking the country to bear the heaviest charge it can to-day, believing that the bearing of that charge is right and wise. In asking support for the Chancellor in these demands, I believe I am asking nothing from any single Member of this House which in his heart of hearts he does not agree with, and does not believe is for the good of the country.

I know the Chancellor — [HON. MEMBERS: "Divide, divide!"]—wants his Vote, and that hon. Members want their dinner, and so far as I am concerned I shall not in either case stand long between either. There are, however, one or two things I should like to say upon the Budget as a whole and following upon what has been said by the Parliamentary Secretary. Possibly the effect of what I may say will make the House take its dinner a little more cheerfully than otherwise it would do. We talk about the Budget committing us to an expenditure of £1,400,000,000. When that is analysed it will be seen that the whole burden of government arising out of this Budget amounts to £300,000,000. I think it was the hon. Member opposite (Mr. Pretyman) who analyses the revenue into three classes of receipts: the receipts coming from direct taxation, from indirect taxation, and from taxable revenue. If you look at the total amount that comes from direct taxation it amounts to the very considerable sum of £466,500,000— more than twice the whole revenue got from all sources before the War. I can quite understand that Hon. Members here inside this House and people outside the House who pay Income, Super-tax and Death Duties should lump up this enormous sum of £466,000,000 and feel that they are contributing an enormous amount to the revenue of the country. But there is another side to it.

When this cheque is received by the Chancellor of the Exchequer—and although I bear in mind what has been said by my hon. Friend near to me, that the taxation of this country is based on an individualistic basis—yet at the same time when we consider the question of direct and indirect taxation, we do regard the country as divided into two sections, of people who are well-off, and who meet the taxes by direct taxation, and the people who are not so well off, and it is from that point of view and from the point of view of the country as a whole, that I am speaking. The Chancellor of the Exchequer one morning gets from the people who pay by direct taxation a cheque for £466,500,000—a very comfortable sum nowadays. He may rejoice in getting it. But what has he to do when he gets this cheque? He has to sit down and write another cheque for £345,000,000 and send it back to the quarter from which he got his first cheque. So far as the Chancellor is concerned, all he has left to carry on the government of the country from that quarter is £121,000,000. That is the real deduction that is made from the income of that section of the community: what they furnish for the government of the country is £121,000,000. From those who pay indirect taxation he receives £348,000,000. That, again, is a very considerable amount. Very largely exceeding the whole revenue of the country before the War, and it may be that those who pay indirect taxation, whether upon sugar, tea, tobacco, or intoxicating liquors, feel that they in their turn are contributing an enormous amount to the revenue of the country. There is another side to that.

8.0 P.M.

It is perfectly true that the Chancellor of the Exchequer does receive something like £350,000,000 from the payers of indirect taxes. He spends a very large amount of that on their behalf; again, as the right hon. Member for Chelmsford pointed out, on what is called Social Reform, matters which he said go directly to the benefit of the working classes—this is something like £228,000,000. That is perfectly correct. Large sums are spent on education, health and pre-War pensions, and from the amount of money received by indirect taxation has to be deducted the amount the Chancellor spends on behalf of those who contribute by indirect taxes. The right hon. Gentleman is simply an agent paying on their behalf what otherwise they might pay on their own. If you deduct from the sum he received the sum he has to Pay> you find he has left from indirect taxation about £121,000,000, or a sum about equal to what he has left from the direct taxpayer. We are considering a Budget of £1,000,000,000. As far as most of the items in that sum are concerned, the Chancellor of the Exchequer is merely a debt collector. As far as £250,000,000 is concerned, he is simply an agent paying people's doctor's bills, the expenses of schooling and the like, and all that is left is the amount spent on defence services and the Civil Service and revenue service.

I am sure hon. Gentlemen opposite do not think there can be any reduction in the amount for interest on debt, and that must stand. We all agree that there can be no reduction on the amount spent on beneficial services like health, education, old age pensions or war pensions. The only subject for economy is the amount spent upon the defence of the realm or the Civil Service Estimates, and it is in that direction, if anywhere, that we have to look for economy in the future. The only other source to which we can look for economy is the Army, Navy and Admiralty expenditure. If we compare for a moment the position to-day with what it was before the War, I submit the whole situation is obscured by the existence of the National Debt, and we shall never get a true realisation of our financial position until we can relieve our Budget of the enormous amount which the interest on debt furnishes.

Therefore it is in the direction of the payment of debt that we must look. As was pointed out by the Financial Secretary, the sooner the debt is paid off the better, but the arguments we have heard all tend in the direction of a levy upon capital. The Chancellor of the Exchequer will not face that. Although he is possessed of abundant courage, he is not prepared to do that. He has offered the House and the country a choice between Excess Profits Duty and a levy on War wealth. I heard the strongest argument against the Excess Profits Duty yesterday when it was said the effect would be to turn a nation of honest traders into a nation of criminals, and that every man would feel himself justified in attempting to escape the Excess Profits Duty. I think the only thing that can take its place is some kind of a levy on capital. [HON. MEMBERS: "Divide, divide!"] The sum of £234,000,000 is the amount the right hon. Gentleman proposes to apply to the reduction of debt. The right" hon. Gentleman is sympathetic towards a levy on War wealth, but it is impossible to make that levy, and it is extraordinary to me that the Chancellor, who is repealing duties this year on land Values, cannot see that the same difficulties which attended the assessment in connection with the Land Values Duty will attend any attempt to assess and collect a levy on War wealth. A simple levy on capital would be far easier. [HON. MEMBERS: "Divide, Divide!"] It is clear that an attempt to ascertain what a man's wealth was in 1914, and what it was in 1919, and then discriminate between the causes that have produced the increase in order to find how much is due to the War and how much is due to natural development of business, is an impossible task. The right hon. Gentleman will find that while the Excess Profits Duty is obnoxious, it does produce something. Any attempt to levy a tax upon War wealth will fail, and the Chancellor will be driven in the end to the conclusion that the only way to effect a reduction of the National Debt is a levy on capital.

The Financial Secretary has made a personal appeal to me. He said that in the considered judgment of the Chancellor of the Exchequer it is desirable in the interests of the nation that we should present a united front in regard to the Second Reading of this Bill, and although I feel that the Committee stage will not meet all my objections, I am reluctant to be the means of causing any appearance of discord in the eyes of the world to-day, and I ask leave to withdraw my Amendment.

Amendment, by leave, withdrawn.

Main Question again proposed.

I am very sorry that the hon. Member for South Hackney has withdrawn his Amendment. With regard to those who have supported the Amendment it is another case of their courage oozing out of their boots. You only need to talk about a united front or patriotism and at once this House swallows everything, including its own principles. I object to the Budget on principle, but I only rise to ask the Chancellor of the Exchequer one question, and I think there is time for him to give me' an answer before we go, as I hope, even yet, we shall, to a Division. Is it the fact that, in the negotiations for the sale of the Chepstow shipyard—I am going by what I see in the Press—an undertaking was given that the Excess Profits Duty was going to be dropped, or was it given out that syndicates buying a big concern like that would get some relief from Excess Profits Duty in developing the concern and making a profit on it? In the other sales of great Government undertakings—aerodromes, shipyards, the Slough depôt, and the like— was any sort of undertaking given, directly or indirectly, by the Chancellor of the Exchequer or any other Member of the Cabinet, on those lines? It is categorically stated in the Press, and I think a statement ought to be made at once here and now on that subject. It is of the utmost importance. Great publicity has been given to this in the Press, and the business world is wondering which way to turn.

No statement was made that the Excess Profits Duty would not be charged in respect of these undertakings, or that any reduction would be made in it, or any particular course taken by His Majesty's Government in respect to it.

Having regard to the statement which has appeared, will the right hon. Gentleman see fit to lay on the Table of the House all papers in connection with the transaction, so that the Government may at least clear itself in the eyes of the newspaper-reading public?

I am sorry that the hon. Member thinks it necessary that we should produce papers to substantiate our word. Perhaps he will communicate with the Ministry of Shipping. I have no personal knowledge of the transaction.

rose in his place, and claimed to move, "That the Question be now put;" but Mr. Deputy-Speaker withheld his assent, as he thought that the House was prepared to come to a decision without that Motion. Debate resumed.

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

Bill read a Second time, and committed to a Committee of the Whole House for To-morrow.

Coal Production

Industrial and Household Supplies (Increased Prices)

I beg to move, "That this House do now adjourn."

In making the Motion of which I gave notice this afternoon, raising the question of the increase in the price of coal, I should like to say in my first sentence that, although I am a mining man, upon this matter I am not speaking on behalf of the miners, but really on behalf of the entire party with whom it is my privilege to act. I should have thought that, upon a question of this importance, raising, as it does, a discussion upon a matter which affects every house in the land, Members of the House belonging to other parties would have felt a desire to be in attendance to co-operate in endeavouring to get cheaper fuel for the constituents whom they represent. Having made that very obvious remark, which the empty Benches in front of me call for, I should like to address myself to the particular subject under discussion. Involved in the Motion of which I gave notice are three main questions. One is the question of control of the mining industry; the second is the question of industrial coal supply to manufactories; and the third is the supply of household coal for the homes of the people. I make no complaint about the fullness of the answer given by my right hon. Friend the President of the Board of Trade, and I hope that neither he nor his Colleague will take this Motion as being moved in any vindictive spirit. Bather it is a Motion made so that the Government may have an opportunity of telling this House, and through this House the country, exactly the principles upon which they have been working, and the reasons which caused them to advance the price of coal in the way they did.

On an occasion like this, we feel the absence of a kind of Advisory Committee which would be repress ntative of the coal owners and the workmen, who could have been called into consultation by the Coal Controller, or by the President of the Board of Trade or his colleague, before so grave and serious a step as this was taken. I am not unmindful of the fact that the Coal Controller has been desirous for some time to establish, or to re-establish, such a Committee; and I am glad to learn, from the answer given by the President of the Board of Trade this afternoon, that immediate steps are going to be taken with a view and for the purpose of setting up an Advisory Committee in connection with the Coal Control Department, who would have been recognised by the Government as a fit and proper authority, had they been in existence, to be consulted before so grave a step was taken. The coal industry is in the position that we are bound to have some form of control, and therefore the Board of Trade must not read into this Motion any intention to demand that the system of control which is now in existence should be departed from. As a matter of fact, without control over the mining industry at present, difficult as it is, we should be faced with chaos if not absolute disaster. In consequence of the War there have been so many far-reaching commitments entered into between the Government and the workmen, and between the Government and the coal-owners, that some system of control is absolutely imperative for these commitments to be given effect to. For instance, the wages of the workmen are regulated nationally, and I hope we shall never go back to the old system of regulating wages district by district as we did before the War. Whatever may be said against control it has brought into existence a system under which the wages of the workmen generally employed in the mining industry are regulated from one centre. Of course, you have economic differences as between coalfields and coalfields, but the economic difference is provided for in a base rate for all collieries or on particular coalfields, and therefore it enables us to have a national system for regulating wages which, if it does not wholly abolish, to a very large extent checks a number of irritating sectional stoppages which undoubtedly would result if we were working now under the system of having our wages regulated by separate sectional boards. Therefore control from that standpoint is necessary.

Control, from the standpoint of production, is not less necessary. You have coalfields producing a standard of coal which, speaking from the standpoint of economic value, is not so wealthy, so saleable, or so marketable, and does not get the price that other coal does, and in any kind of open competition, where the best alone could prevail, the poorer coalfields would be bound to close down if there was no control. Under control you get the pool, which enables the mining industry to be treated as one unit, and therefore, whether collieries are situated in Scotland, England, or Wales, whether they are producing coal of a character that finds a market best abroad or at home, they are under the Bill treated as one entity, and the wealthy collieries are made by control to contribute to the upkeep of collieries producing the necessary commodity which economically may not be so valuable. Therefore, control is essential from that standpoint as from many others. There is an idea abroad that we ought to abolish control. After the most careful consideration, I see no hope of abolishing control with any advantage either to the nation as a whole or to the mining industry in particular. But when we come to deal with the pool, while the Government has been more than fair to the coalowners, the workmen have yet to be convinced that it has been barely just to them.

It seems fashionable, when there is any increase in the selling price of a commodity, to place the responsibility for it at the door of the workmen because of increased wages. I desire to put in my caveat that this increase in the selling price of coal which the Government has felt called upon to make, both for industrial and household coal, is not in consequence of the last advance in wages, or indeed of all the advances in wages. To be quite fair it is necessary that the House of Commons should have that statement, and, if they care to do so, to analyse it. The miners have long felt, from the early days of the War, that increases in wages to meet the continuous increase in the cost of living were unsound at the base. To use the classic phrase, it is working in a vicious circle, and in the early days of the War we offered to enter into a covenant that if the coal owners would undertake not to increase the selling price of coal above the point at which it was then, we would undertake not to seek for any advances in wages. Therefore, this is no new discovery on the part of the mining community. We have tried all along to give effect to that idea, but unhappily, we have been left behind, and the mining community, in a full altruistic sens, have been allowing the commodity which they produced to be sold at cost, or less than cost. We were under the impression that if we took up that attitude we should, either by example or effect, induce other industries so to produce that the cost of living would be kept down to the lowest possible standard. While the mining community were standing still, other people, enjoying cheap fuel, went into the market and, through economic competition, got the highest possible price they could, and that is the position with which we are faced to-day. The mining community, instead of being responsible for the high price of coal, are really entitled to the thanks of the Government and the nation for not using the power of their mighty organisation to make use of the economic opportunity which presented itself to force wages up to a very high point indeed. Therefore, we see just where we are on the question of wages. Even now, if the other industries are prepared to accept the principle which the mining community have been working for, and the Government will also covenant to use all the authority which is behind them to concentrate upon reducing the cost of living, the mining community will welcome that as the one and only solution of to-day's problem. When we come to deal with the price of coal to manufacturers, I make no complaint. It will go higher yet.

What is your remedy?

Standing on very low wages. I should have thought the hon. Gentleman would see at once that one was the accompanying part of the other.

The mining community cannot be expected to refrain from using their industrial power for increasing wages, unless the Government, together with the other interests of the country, are going to concentrate upon reducing the cost of living. I have never seen a reason for coal being supplied to British industries at cost or less than cost price. By that very operation the Government were simply handing over a great asset to the people engaged in those industries, the capitalists, if you like. The workmen may have shared in it by their wages. I will not dispute that. I am not interested in disputing the proposition if it is made. What I am endeavouring to lay down is that I am not making any complaint of the increase of price of coal to British industries, because when they were getting cheap coal, instead of using the cheap fuel as an instrument for reducing the cost of the produce they sold to the British public, they simply pocketed the advantage. Therefore, I am not going to join issue with my hon. Friend about the increased price of coal to British manufacturers.

What my colleagues and myself desire to do is to put this question quite frankly and clearly to the Government. Is it not possible while they are keeping control, and while they are increasing the price of industrial coal, to set up some machinery which will leave the coal for the homes of the people of this country at a price not higher than before the last advance was put on. We talk about subsidising bread. It is essential in my judgment to subsidise bread. Happily, the weather is getting better, but if we were faced with winter instead of summer, I should declare that it would be not less important that we should subsidise coal to the extent that the people would be able to have cheap fuel in their homes. When I am talking about subsidising coal I am not talking of subsidising it out of the national Exchequer. I am talking about subsidising coal out of the mining industry itself. We have a pool, and in exactly the same way that the Government now arrange to subsidise out of the pool the poorer colliery companies which could not keep going without a subsidy, I respectfully suggest that they should subsidise out of the same pool the coal that is going to be supplied for consumption in British homes. My hon. Friend will say that that is both an economic and an administrative difficulty, which they are not prepared to face. If the Government are not prepared to face that now, as they are going to set up an advisory committee, would they be prepared to submit to that advisory committee a proposal such as I am making, so that the advisory committee may examine the practicability and fairness of the proposition that the coal for household purposes might be sold at a price not more than it was before the last advance was put on. My hon. Friend will see at once that I am not presenting arguments in any hostile spirit. We realise that there is a lot of difficulty involved in this problem. We feel that it will not be easy to distinguish between coal supplied for industries, and for household purposes. Human nature being far from perfect, it is not difficult to imagine that a man having a supply of coal for household purposes should sell it for industrial purposes because he could get more for it. There could be some provision against that. Such provision might be found, and I suggest that every effort should be made to make such a provision. Therefore, I ask the Government that if they are not prepared to give an undertaking that they will differentiate between the price of coal supplied for industrial purposes and coal supplied for household purposes, will they be pre- pared to submit that question to the proposed joint committee, which they say they desire to set up, and be guided by their counsel after the committee have examined the proposition as to whether it can be done or not?

You cannot have peace in this land with a disgruntled population. This is a woman's question too. I have been a Labour leader for many years, and there is one thing that I always keep off, if I possibly can. We used to have a good deal of trouble about doctors. A dispute about doctors would arise, and our agent would say, "There is a dispute about doctors. I think you had better interpose." I replied, "I never interpose in a doctor's question, because that involves a woman's problem, and a woman's problem is a very difficult problem to understand." I suggest to the Government that they do not quite know what they are up against in increasing the price of household coal. They are up against a woman's problem. How can you have peace in the land when every time a man comes home from work he finds that his wife has had to pay a large part of his wages in purchasing a small quantity of fuel? This is a great human problem, and I present the argument in that sense. I ask the Government to make a great effort to keep down household coal to the lowest possible price. Let household coal be covered by the price obtained from the industrial coal or out of the pool. Unless this is done, then so far as I can see we are in for a pretty bad time in this country. Happily the psychology of our race enables us to surmount difficulties that might otherwise easily overwhelm us; but when you touch a great human problem, in which the man, the woman and the children in the home are directly concerned, you are touching one of those problems that can more easily breed agitation, unrest, and even revolution, than anything else can. The Government will have realised that the country feels very strongly about this increase in the price of household coal. If they will notice, the emphasis is laid, not upon the increase in the price of industrial coal, but the increase in the price of household coal, and it is upon that that my colleagues and I desire to offer our criticism, and on that we make our Motion.

When the Government decided to increase the price of coal for household purposes, did they take any step to prevent the consuming public being exploited by coal merchants over the coal already in stock? For the last few weeks there has been an impression abroad that the Government were likely to advance the selling price of household coal.

I do not think my hon. Friend is quite as sound as he usually is. In this matter I do not think it was the by-elections. It was rather that the people who held stocks of coal thought that if they held long enough, and the Government increased ' the price, they would have an opportunity of making a larger profit than if they sold their coal when they were asked for it by the consumer. I have a letter in my pocket given to me by one of my hon. Friends which has come from the East End of London. There has been an order in for weeks which could not be supplied. The correspondent cites several instances of orders for coal being in for several weeks with the ordinary coal merchant, but they have not been able to get the coal supplied. I therefore want to ask a question. What steps have the Government taken, if any, to protect the consumer against the merchant who has held coal up, banking upon this rise, and who, if they sell now, will sell, not upon the price which they paid for it, but upon the price which the Government has placed upon it by this increase? Whatever the Government may feel itself unable to do, it at least ought to feel itself in a position to compel the existing stocks of coal, which had been purchased for selling to householders, to be sold at a price that existed before the last increase was put on.

I should like to know from the Government the figures which caused them to make this departure. I hope that from now on we shall have a more steady policy and a more understanding policy with regard to coal. My hon. Friend will remember that upon one occasion Members of the Government came down to this House and startled us with the proposition that the selling price of coal should be increased by 6s. a ton. We asked for a White Paper to show us exactly how the Government made their calculations and how they justified that increase. When we saw that White Paper and some of my hon. Friends got hold of it and riddled it from top to bottom, it was found that no mathematician who ever lived could understand it, that the basis was wrong, that the conclusions were wrong, and that upon no principle of arithmetic could the increase of 6s. per ton be justified. This went on for some time, though we protested, but, to our amazement, a little later on the representative of the Government came down, not to increase the selling price of coal by 6s. a ton, but to reduce it by 10s. a ton. Why have we not had a White Paper now telling us the reason of this increase? Of course, we can get it for asking, and I now officially ask for it. But I should have thought that the Government would have preferred to issue a White Paper for Members, thereby taking this House and the public into their confidence, and showing why it was that they had determined to increase the selling price of coal in this way.

The mining industry must be placed upon an economic basis. I quite agree. Coal must win its way and hold its own. Subsidies, I agree, are a bad system. Doles and subsidies have a great tendency to demoralise a race. Therefore, upon the main policy of placing the mining industry upon a sound economic basis I make no complaint. My hon. Friend and his colleagues, as Members of the Government, must not take it that the Labour party are objecting to the mining industry being placed upon a sound economic basis. We introduce this Motion, not because we disagree with the presumed intention of the Government, but because we do feel that in these days of serious agitation and unrest the Government and this House will always be well advised in exhausting themselves in giving no cause for complaint to the people who live in the cottage homes of this land. It is in that spirit that I make this Motion. I hope that the Government, when they come to reply, will not only reply fully upon the facts, but that they will give us an undertaking that if, upon re-examination, it is found economically and administratively practicable, they will differentiate between the price of coal consumed in factories and the coal consumed in the homes of the people of this country.

The right hon. Gentleman who introduced this Motion has expressed surprise that no White Paper was placed before the House explaining how this rise of 14s. 2d. on household coal and 4s. 2d. on industrial coal has been arrived at. I think that the reason is very obvious. The House is aware that for over a year the coal industry has been controlled under a special Act of Parliament by which all profits have been pooled. Consequently, if there was a rise in wages the Board of Trade only required to put on a sufficient sum to the price of coal to meet that rise in wages, or any other expenses they might have to face. And they were able to produce a White Paper from time to time which more or less accurately showed the reason for the proposed increase or decrease as the case might be. But the present increase in the price is admittedly not intended to meet altogether an increase in wages or other expenses of the coal industry. It is the first step towards decontrol. The Coal Mines Emergency Act expires on the 31st of August next, and accordingly the Board of Trade have come to the conclusion that it is a wise thing not to continue the control any longer. Consequently, for the purpose of meeting certain companies who otherwise would be bankrupt, who at present are not making profits themselves, but are making losses themselves and receiving money out of the pool, and for the purpose of enabling them to make their position sound, the Government are increasing the price of coal for everybody.

Although we have no White Paper put before us, it is perhaps well that we should realise in figures what these two increases in the price of industrial coal and household coal mean. The Board of Trade Estimate presented to us was that about 180,000,000 tons of coal would be used inland this year, and I believe that I am right in saying that of that about 35,000,000 tons was regarded as household coal. It is understood that the demands of industries have been greater and that at present more than 180,000,000 tons of coal are being used inland. If my proportions of household and industrial coal are right, we shall find that these increases of 14s. 2d. and 4s. 2d. respectively mean that the coal industry will obtain from the public just under £60,000,000 a year. The increased wages which were granted lately to the miners amount to about £30,000,000 a year. So the increased price of coal exceeds the increase in wages recently granted to the miners by about £30,000,000 a year. That will be spread over all the collieries and companies that are selling coal inland, whether for industrial or household purposes. Up to the 31st August next, the whole of that money, that extra profit, will go into the pool, and the colliery companies are interested in it only to a small extent; but after 31st August next that increase is going into the pockets of the companies who earn it, and it will be subject to Excess Profits Duty, Corporation Profits Tax and Income Tax, and the individual shareholders will be liable to Super-tax, and I think it will be found that of this £60,000,000 now being: taken from the consumer by these increased prices, after 31st August at least £20,000,000 will find its way back to the Exchequer in Excess Profits Duty, Corporation Profits Tax and Income Tax.

In other words, this increase in the price of coal is, in effect, indirect taxation of £20,000,000 upon the people of this country. It is a very serious matter, having regard to the fact that wages today are increased, not according to the supply and demand of labour in any industry, but according to the rise in the cost of living. I reminded the House yesterday that railway workers have an agreement with the Government, by which the 400,000 workers obtain an increase of 2s. per week for every 10 points increase in the Board of Trade index number of the cost of living. We have been told by the Minister of Food that a rise of Id. a lb. on sugar means an increase of wages throughout the country, because of the sliding scales, of £13,000,000 a year. I am not in a position to calculate, but I hope the Parliamentary Secretary to the Board of Trade will be able to tell us how much 8½. a cwt. on coal means if a 1d. per lb. on sugar means an increase of £13,000,000 in wages. It appears to me that we are in this way going to raise wages in every factory in the country. We are going to increase the cost of production because every factory has to pay more for its coal or gas or electric light, but, owing to the existence of the sliding scales which put up the wages of so many workers directly the cost of living rises and which as a result put up the wages of all other workers, who immediately demand increases because those under the sliding scale obtain the increases, we are goings to put up the cost of production in every factory by reason of wages as well as by reason of the increased cost of fuel. The Government is once more contributing to this appalling chase of wages after prices.

The President of the Board of Trade or the Parliamentary Secretary will probably say that it is very desirable to get rid of control, for as long as control remains the companies will refuse to develop the industry. I quite agree that it is very important that we should continually be sinking fresh pits and driving fresh Beams. I quite agree that during the last few years there has been a lack of development from which we are likely to suffer, not immediately, but later on. As a matter of fact, increased production at present does not depend upon development work; it depends upon houses. There are pits all over the country which could produce more coal if houses could be obtained for the colliers. All over the new district that has sprung up in the last few years in South Yorkshire many millions of tons of coal could be obtained if accommodation could be found for the miners, who cannot travel six or eight miles to and fro every day in order to work. The problem before the Government is, is it not worth while to continue this control a little longer and run the risk of the development of new pits being delayed for a short time in order to prevent this increased cost of living, which, apart from increasing the cost of production in every factory, adds to the discontent in every household? I say it would be wise to continue the control for a short time.

9.0 P.M.

:I have listened with some attention to the speeches, and particularly the speech of my right hon. Friend (Mr. Brace). I cannot remember in this House any speeches more barren or speeches which exemplified in an equal degree the beating of the air. I did expect that my right hon. Friend (Mr. Brace) would at least have had some arguments with which to introduce his Motion. It appears to me that his quarrel is not so much with the Government, or with the Coal Control, or with the Coal Controller, but with other industries. My right hon. Friend afterwards proceeded, not to complain of the action of the Government in putting up the price of coal, but to suggest that the industrial concerns of this country should be made to pay for the coal consumed by the household consumer. That is the nostrum he proposes to the House for the solution of this great question. It may or may not be a sound principle of policy that one set of consumers in the country should be made to pay so as to let off another set of consumers easier. I particularly noticed that my right hon. Friend made a very notable departure this time from his methods of criticism on a former occasion. Then his criticism was directed against the principle of raising the price of coal to an economic level. To-day he suggests that those whom he pities, as having to pay an increased price for coal for consumption on the domestic hearths, should be relieved at the expense of the industrial consumer. He agrees with a general rising of the level of prices, and I am glad to note that he at last recognises what economic principles in the development of industry mean. He has gone back, he has recanted from that false position which he, with his other friends who were always opposed to a sensible policy of placing this industry on an economic basis, advocated, and he at last admits that the time has come when no longer can they throw dust in the eyes of the people, and that it is now necessary to restore this industry to that economic position by which only it can live. Let us examine for a moment what the remedy suggested by the right hon. Gentleman means. He sketched, in that inimitable manner of his, with which we are so well acquainted, that remedy, and, although he has to a large extent changed his position, still the voice of the syren of Abertillery remains. On more than one occasion, there have been some rather interesting comments in this House on the pronunciation of that most euphonious word, AbertillERY. It used to be called AberTILLery, and it is only since it was honoured by being represented by my right hon. Friend that it has acquired that very enhanced euphonious sound which was required to fit itself to that honour.

My right hon. Friend told us that there was a pool and he appeared to think it was inexhaustible, and that by it much of the ills to which this industry is subject could be cured. He appears to have forgotten that that pool is made up from the profits of the industry minus the losses. Assuming that the pool could be filled by a continuous increase in the price of coal so as to obtain a profit from which money could be poured into this pool, then the suggestion amounts to the fact that one section of the people of this country are to have the benefit of that pool at the expense of another branch of the people of the country. I submit that that it not a sound economic policy. My right hon. Friend referred in a somewhat cynical mood to the 6s. increase and the calculations upon which that increase was based. Was there ever better or greater justification for that increase than the fact that the Government when they had reduced the price of domestic coal by ten shillings, on some principle unknown to anyone who understands the real question, have to come back to this House and propose not only to restore that ten shillings, which was so unjustifiably knocked off, but to further increase the price by 1s. 4d. per ton to bring it back to the 6s. which nine months ago was estimated as the proper figure for the price of coal to place it on an economic basis.

The price of coal now proposed provides not only for the restoration of the ten shillings but for an increase of 4s. 2d. on the top of that, of which 2s. 10d. represents the proposed increase in wages or the increase which came into force a week or two ago and which was to date back, I think, to the 1st April. The 1s. 6d. per ton in addition to the 2s. 10d. represents a figure which ought to have been put on the price of coal last July when the 6s. increase was put on. I then stated in this House that the proper increase in the price of coal should have been 7s. 6d. per ton and not 6s. at that time, and I have further explained that the reason why the 6s. was put on instead of 7s. 6d. was because the estimates provided for a profit of 10s. per ton upon exported coal which was the same figure as that on which the Sankey Report was based. To that extent the Government were subsidising the British consumer by 1s. 6d. per ton, and even after the 6s. increase the British consumer was receiving his coal at less than the cost of production. There is no economic principle which can justify any body of consumers in this country receiv- ing their coal or any other article of consumption, at less than the cost at which it is produced. If that false principle is followed and is continued, the day will not be far off when the industries of this country will cease to exist and this country, which depends upon them, will also cease to exist.

I am glad that the Government have now at last faced the position, and I hope they will adhere to it, and will not give way to clamour. I hope they will not be weighed by any of the private interests which have caused so much vacillation in the past. I hope they will now adhere to the sound economic principle which I have laid down. They are now proposing to make the consumer, whatever he may be, pay for the cost of the article he uses, allowing a fair profit for all the interests which are represented in the cost of production. Necessarily the price should include a fair and proper wage for the workmen. It should also include a proper return for the capital employed in the industry, and when these are provided for the consumer should pay what the coal costs to get, plus the cost of distribution. No amount of chicanery will get over that. The industry will not come to its own until that principle is adopted.

I have listened with great interest to the speech just delivered by the hon. Gentleman. It is very interesting to hear the ex-coal Controller attempting to justify something that happened twelve months ago. I can understand that, but that he should attempt to do it in this House and in the presence of so many who know the facts, is surprising. With the knowledge that every estimate he made has been falsified by the facts which have since become known. That he now comes forward to champion wise politics is a little bit amusing. The President of the Board of Trade to-day gave two reasons for having raised the price of coal. The first was, that the industry should be placed on an economic basis, and the second was that the differentiation between industrial coal and domestic coal was unjustifiable. I think these were his two reasons for placing 4s. 2d. more upon the industrial coal and 14s. 2d. upon domestic coal. So far as the miners of this country are concerned, their position cannot be properly described as attempting to throw dust in the eyes of the British public. If they were concerned only for their own interests they might very well say "Amen" to all that is said in the matter of raising the price of coal. The higher the price of coal the higher the worker's wages.

As the House has often been told, we lave agreements in every coalfield under which the miners can claim advances of wages based on the selling price of coal. Our Welsh agreement with the coal-owners entitles the Welsh miners, if they avail themselves of the provisions of the agreement, without regard to the other coalfields or the general interests of the community, to demand anything from £2 to £3 advance of wages based on the selling price as recorded in the coal-owners returns. That cannot be disputed. If the future of the industry is to be approximated to the conditions that existed before the War we have everything to gain by raising the price of coal. There is no reason, where the object is only to look after the interests of 'the miner, why they should not agree to the increase in price. So that when we raise this question it is not in our own interests. Whether we are right or wrong in the view we take of the situation, whether we are right or wrong economically, we cannot be truthfully charged with being selfish in this business or with seeking only to promote our own interests. It has never been our policy to do that. We have almost gone for the policy which is quite antagonistic to that, and we have had regard to the interests of other people. We are told that it is most important that the industry 'should be put upon an economic basis, and that that is one of the main objects of the increase. So far as I know, and I know as well as the hon. Gentleman— I am not boastful, but I have had access to the same facts as are available to him —I believe that the mining industry without one penny being added to the price -of coal is a self-supporting concern. Instead of a loss, owing to the advance of wages, I believe there is ample margin for paying to the mine owners the profit on their capital to which they are entitled and for meeting the wages demands. We have had the data up to the second week of March which shows that that statement is true, and we can judge from that data up to the present date. I believe it cannot be disputed that without putting one penny more on industrial or domestic coal, and without any subsidy to the industry from the Chancellor of the Exchequer, that statement is now correct. I am talking about the ascertained statistics of the industry up to a few weeks ago. If anybody is going to contest that statement I will say this: for 12 months we have been guessing in this industry; we have been making estimates, and guessing and contradicting each other, and for some months past some of us have remained silent. Why have we done so? We have remained silent because we did not want to guess any more. We wanted to have ascertained facts instead of estimates. When the last coal Bill was before the House we urged that a Clause should be inserted imposing an obligation upon the Coal Controller to lay statistics on the industry before Parliament every three months, showing what the coal cost to produce in regard to wages, stores, and other expenses, and also what was realised for the coal, so that every Member of this House could see for himself what the real financial and economic position of the industry was as ascertained from the books of the owners themselves. Mr. Huggins, the Secretary of the Miners' Federation of Great Britain, and I spent a considerable time with the Coal Controller quite recently in going through the statistics of this industry, and, so far as we know, there is a margin of profit in the industry after paying the last advance in wages. We believe that to be a perfectly true statement. We are told now, and I think it is true, that there is a falling off in exports, and that as our big income has been derived from exports there may possibly be a deficit.

Is it not desirable, instead of making these changes now, to wait until we get the accounts of the industry placed before us? The Act says that we must have a balance sheet for the March quarter. I wanted to put in that it should be two or three months at the outset before the account should be laid before the House. We were told that it would be laid at the earliest possible moment and within the period for which we were asking, but that, if we put in a date, it would delay matters. I suppose it cannot be more than a couple of weeks before we shall have that balance sheet, and then everybody will know what the position is. I think we got returns from 80 per cent. of the collieries in four or five weeks when we were rushing the matter, and there is no reason why we should not have the complete returns of the industry by the end of the month. Then, every hon. Member of the House will know exactly what he is dealing with and what the position of the industry is. If it be true that there is no deficit in the industry at present, surely there can be no serious objection to waiting until we get the definite accounts before us. I strongly urge that that course should be adopted, not in interests of the miners at all, but in order that we may not make further false steps in connection with this great industry. Even if it did require a bit to make good a deficit, there ought to be a pretty big sum available for some purpose. I do not see that that is accounted for in the Budget Estimates or in the statistics we have had from the Treasury, but we have already paid £47,000,000 to the coalowners out of the Exchequer according to the Estimates that have been passed in this House, and that every penny of that is to come back again into the Exchequer. I shall be interested to know when we are going to get this money back from the coal-owners. I do not believe it is necessary to pay one cent to put the industry in order. It is not that the industry as a whole is not on an economic basis. The right hon. Gentleman to-day said that he was asked whether we had not consulted as an industry, the owners' and the men's representatives. He said that the Committee that should have been consulted was not in existence; that he regretted it, but that they were out of existence owing to a cause over which he had no. control. We have been discussing the setting up of that joint committee again, and we told the Coal Controller recently that it would not be advisable to discuss that question or to bring it forward while the last wages advance was on, but that as soon as that matter was out of the way we would proceed to the setting up of that committee as speedily as possible. I contend that, in the interests of the industry and of the nation, these great questions should be submitted for consultation to that joint committee. Let them have a chance of seeing what their bearing is to-day. I do not think the right hon. Gentleman will experience much difficulty in getting that committee set up at a very early date, and then we may very well get on to this question and see what is the proper thing to do and advise the Government- accordingly.

There is another consideration that ought to weigh with the Government and with the House. I would like to know what is to be done with this money? My right hon. Friend the Member for Derby (Mr. Thomas) estimated the cost of this at £60,000,000. I think he was wrong in one of his figures. He said that the amount of coal for home consumption was about 36,000,000 tons. I think, as a matter of fact, it is about 52,000,000. That is to say, the" amount on which this 14s. 2d. will operate is from 50,000,000 to 52,000,000 tons. By the time you take into account the coal used in the production of gas and electricity for domestic purposes I think this charge would fall on about 52,000,000 tons. He gave us an under rather than an over-estimate in saying that this was going to add £60,000,000 to the funds of the industry. Who is going to get that £60,000,000, and what is to become of it? Is it to become the property of the coalowners, because it is not wanted in order to pay the profits to which they are entitled under the Act. Are we to be told that after 31st August the whole of that sum is to be the property of the coalowners?

I want to submit what is a very serious proposition to the House, and which is based on fact. If this price continues, and if it is allowed to operate instead of its being discussed between ourselves and the owners and the Government, you will have every coalfield in this country questioning:" What advance of wages are we to go in for in consequence of this increase in the price of coal?" That is a certainty. They will say: "There is this £60,000,000 there, and Is. a day will cost about £15,000,000; let us go in for a 4s. a day advance in wages." I am certain that that sort of thing is going to obtain in the mining industry, but that is not all that is going to happen. When every household in this country is being affected in the cost of living by this increased price, you will have an incentive given to the movement that is developing in the country generally for advances in wages such as will not help us at the present-time. For all these reasons I very much hope that the Government will see their way to give us a chance to get this industry on to something like a decent basis, and to consult both sides in the industry. I want to agree with what my right hon. Friend the Member for Abertillery (Mr. Brace) said about the industrial coal. In the past we have been pursuing a policy of urging the Government to utilise the profits from exports to supply industries with cheap coal in the hope that we should have a reduced cost of living in consequence. What we find is, not that we get a reduced price in the manufactured article, but that we get swollen profits in connection with other industries. As long as that is the effect it is having, we say there is no further reason whatever why we should hand over the profits of the mining industry to other industries, but it is a very different proposition when you come down to the question of domestic coal. There our policy remains as it has been all along. We have only pursued the policy in relation to industrial coal because we thought it would have the effect of keeping down the cost of living. We know that it has that effect with household coal and that to raise the price of coal will have exactly the opposite effect.

To my mind two things ought to happen before any change in the price of coal takes place. First, we ought to have a balance-sheet for the March quarter, so that we shall know exactly what the position is, and with these statistics before us we could have a few facts relating to April and May as a White Paper, and we should then have up-to-date information for everybody to form his own judgment upon. The next thing which ought to be done is for the Government to produce their Bill embodying their coal policy for the future. We want to know what is to become of this industry. Are we in future to have agreements between ourselves and the coal owners, and are those agreements to be based, as in the past, upon wages being regulated by the selling price of coal? Are we to reap a big wage advance as a result of this increase in the price of coal? We want to know what is the position of the industry, I submit to the right hon. Gentleman, and we are not talking in a fighting spirit at all. If you say you will not take any advice from us, but you will follow the hon. Gentleman's urging on the other side that you should stick to what you have done, I say that if one does some thing that is inadvisable, the proper thing to do is, not to stick to it, but to retrace one's steps, and I want to make a strong appeal to the right hon. Gentleman, on this occasion at any rate, to give us an opportunity of discussing the bearings of this question with the coal owners and the Government together. Let us have the Government's proposals for the future of the industry, and let us understand exactly where we are and see if it is not possible to come to some sort of agreement, because, after all, whether we like it or not, the mining industry, as far as output is concerned, is in a deplorable condition. There is no doubt about that at all, and it is not going to improve unless some settlement can be effected which will bring in not merely my colleagues and myself to a desire to improve that position, because it cannot be done by the efforts of a few individuals. It is only as you bring the two great organisations, namely, the Mining Association of Great Britain and the Miners' Federation of Great Britain, as an organised national effort to bear upon that problem that you can improve the position in the mining industry. I do not want to see us at this moment getting off on a side issue. Surely it is not too much to ask that, pending the proper investigation that I have indicated, the Government should say, "We will suspend the operation of the 14s. 2d. for a time to give everybody interested in this industry a chance of going into the matter." I make the appeal in all good faith, and I hope the right hon. Gentleman will see his way to agree to it.

I rise to plead with the Government to bring to an end as soon as possible the present system of coal control. We have had a great many arguments and criticisms from time to time in this House on the various policies of the Coal Controller in first advancing, and then reducing, and then advancing the price of coal, and we are told that each step has been quite necessary, and later on, when a different policy has had to be pursued, the whole of the arguments that we have listened to before seem to have been contradicted. It is contended that we ought to get on to the economic level as soon as possible, and I maintain that there is no better way of doing that than by removing all forms of control. If we could see some material advantage in any way from the control we have had, we might be induced to continue longer with some form of control; but whichever way we look we find coal getting dearer and we find production getting less, so that I think it is time we tried some of the pre-War methods of regulating this industry. It was highly amusing to me to see the right hon. Member for Abertillery bargaining across the Floor of the House with the Parliamentary Secretary to the Board of Trade, and trying to make a bargain with regard to wages and the price of coal: that if the Government would undertake not to advance the price of foodstuffs he would see that the miners' wages were not increased. I do not know what sort of an age this is that we are living in, but there are some individuals who seem to have a sort of audacity to place themselves in a position where they control things and can supersede economic laws, and they speak as though they really had some control. To my mind, any Labour leader has about as much control over wages as the Minister of Food has over food, and the Minister of Food has as much control over the price of food as King Canute had over the waves. These questions are, after all, questions of supply and demand, and no Labour leader could advance wages unless the conditions were favourable, any more than any other body of men could put down wages unless the economic position warranted it. These conditions of prices are world-wide in their ramifications, and the sooner we recognise these things the better. We set up expensive machinery during the War on borrowed money for coal control and food control, and we do not seem to have realised yet that it is time the whole thing was swept away.

The hon. Member for North-East Derby (Mr. Holmes) spoke to the effect that the increasing price of coal would cost something like £60,000,000 and that only half of that was going in wages. This is a very pernicious statement to go abroad unless there is some foundation for it, and I think it behoves the Board of Trade to answer effectively any argument of this sort. We are told that the domestic consumption of coal is something like 52,000,000 tons, and my calculation is that with an increase of 14s. 2d. it works out to £37,000,000 a year, which is a far different thing from £60,000,000.

In addition to the 52,000,000 tons at 14s. 2d., there is at least another 130,000,000 tons at 4s. 2d., and when you have added the two together, you have more than £60,000,000.

I understand that our export coal, although it was a big thing some months ago, is a gradually diminishing quantity. [HON. MEMBERS: "No!"] At any rate, my information is that we are exporting less coal now than we were some six months ago, and I think this has a direct bearing on the price. If we are exporting less coal, and that coal is a very profitable transaction, it must necessarily lead to a big loss on the Department, and it means an increase in the price of coal for private consumption in order to balance the loss on the export. I do think the Board of Trade ought to take that argument in hand effectively, and clear the matter up one way or the other. It will be fraught with danger to the country if it goes forward that the price is going up £60,000,000 and wages only £30,000,000, unless it is set off with effective argument. We have witnessed, since the 10s. has been removed, what we have always witnessed when prices are controlled below the economic level. We have seen it with the Ministry of Food. We have seen cheese go off the market, and rabbits go back to their holes, and all that sort of thing, when the price has not been a profitable price, and we have also seen this thing obtain while the price of coal has been reduced by 10s.

The grievance in the last few months with the people has been not so much the price of coal as the shortage of coal, and I know a good many instances of poor people suffering hardship on account of the difficulty of obtaining coal. It has not been a question of their not being able to pay for it, but a question of their being able to pay for it and unable to get it. I know of one case of a house where four working-class girls had to turn out early one wet morning to their work, and were not able to brew a cup of tea before going to their work because they had no coal in the house, and were unable to obtain it. I know of another case of an old woman 77 years of age, and. her husband 70 years of age, having no coal for the fire in cold weather, simply because she had a row with the coal man with whom she was registered. He was in the habit of leaving the coal in such a place as he thought fit, and bringing it in in a way he thought fit. They are too independent now to take it in the back way, but will bring it through the parlour or any way they think fit, and if they are remonstrated with by these people, then they are left without coal. It is a tyranny to which they ought not to be subjected; in fact, I think inquiries ought to be made in cases of this sort, and if any coal people are treating customers in this way, they ought to have their licences withdrawn and not be allowed to continue in the business.

I do hope that we shall get coal on an economic level. It is impossible, to my mind, to fix one price of coal for the whole of the country, regardless of the distances that industries are from the coalmine, and regardless of the particular kind of coal that people require in certain districts. It is perfectly obvious that if the Government are controlling a big industry like coalmines, there must be slackness in the management of certain pits. There is nothing to induce production on the part of the management. I do not blame the men for all the underproduction. I am quite convinced that, under proper competition and effective management at various pits, production will be stimulated. If there are certain seams in a pit difficult to work and others easy to work, it is quite conceivable that, under a guaranteed profit, the mineowners will work the more difficult and costly seams at the present time, and leave the others until control is removed. It is also impossible for the Government to ascertain and direct a particular kind of coal required for a particular neighbourhood. We know that people vary in their ideas as to the kind of household coal they want, and if we have this variation in an ordinary household, we also know that some industries like a swift-burning coal and others a slow-burning coal, and there are different kinds of industries in the same district requiring different kinds of coal. It is perfectly impossible for any Government Department to handle this huge question and give satisfaction all round. Each industry will settle for itself the kind of coal it requires and the amount it is prepared to pay for that coal, and so on. Only in this way will you get back to sound economic facts, and the country has no chance of recovering so long as we engage in control in this way.

I must congratulate the Labour party on putting up such a splendid show for the Motion for the Adjournment. I am sure we all appreciate the action they are taking on behalf of the coal miners, but may I put in a word for someone who has not been mentioned this evening, and that is the consumer? I have no doubt the Board of Trade will have a word to say on behalf of the coal-owners and on behalf of the Government, and the Labour party have put up a good case for the miners, but I would appeal to the President of the Board of Trade, when he replies, to give due consideration to the position of the working-woman or the working-man, because I will assume we all do work in some direction or other, no matter how unprofitable it may be to the nation. I have no doubt that the miners' answer will be, "Well, if you put up the price of coal or other commodities, we will simply put up the pit-mouth price," and so on. While this game is going on, there is a vast number of people in this country who are being very heavily penalised, and the indirect taxation which the Government is imposing upon them is grossly unfair. It is grossly unfair that because the miners have succeeded in squeezing another 2s. a ton out of the Government, the Government, in their turn, should put on 14s. to make sure.

Eleven shilling and two-pence is going to the Government, presumably, or to the industry, and will eventually either create a loss or a profit. [ Laughter. ] I wonder whether hon. Members who laugh realise that there is another alternative—it might just balance their books, and we are no further forward. If the matter produces a profit, the Government will acquire it by means of the Excess Profits Duty. I should like to appeal to the President of the Board of Trade to put the whole thing on an economic basis, not only coal, but all the things which the Government are subsidising, and let the public realise what things really cost, and what are the profits. Most probably then we shall get organised public opinion in favour of a new condition of affairs. I always thought that all forms of subsidisation were nationalisation in tabloid form. You can persist with subsidies until you get the Government completely controlling every- thing, and that is nationalisation, which is what Labour Members seek with such sincerity, and which directly it is practised upon them they resent with such strength.

We do not seek subsidies. Organised industries are well able to take care of themselves.

I would like to ask the President of the Board of Trade to do one of two things; either to take off all subsidies and let the things that the Government is juggling with go down to their economic value, thereby opening the eyes of the people to the various financial chicanery that is going on in this country, or, alternatively, if he does decide to use public money to rig the markets, I trust that he will use it, not in the interests only of producers of coal—for they are not the only people who work, and who, in their opinion, produce what is one of the essentials of life—but of others. I hope the coal producers realise the responsibility of their task. I hope that they realise, if they are producing this essential, that they have no right either to profiteer out of it, or withhold their labour; and that they have no right to hold a pistol at the head of the community because they are producing this essential. I hope the President of the Board of Trade will tell them quite fearlessly and quite directly—I am sure he will appreciate this—that despite the ever-increasing wage there is an ever-decreasing output. It is all very well for the labour leaders of this country to say that salvation lies in increased output. Of course it does. But you cannot produce coal by talking about it, nor can you produce anything else in that way.

I would ask the President of the Board of Trade to tell the labour representatives that the surest way that they can reduce the price of coal, if it is not on an economic basis, is not by talking about it, and not by shortening hours and effort, but by producing a fairer proportion of what was produced before the War, and before the increased wages were paid; and if they are not prepared to do that I trust he will take his stand against them. I do not know what the ulterior motive of the Government may be. Whatever it is, I hope it will not be a policy like that of the predecessor of the right hon. Gentleman, changing from day to day. I hope that he has a con- sidered policy, and that the Government are going to stand by the 14s. 2d. and not change it within a month by pressure from either the miners or anyone else. Surely the right hon. Gentleman knows that this vacillating policy on behalf of the Government goes to create a new gambling in the very commodity which they are trying to adjust, and does an immense amount of injury, not only to the industry, but, above all, to the consumer.

I hope he will give us a better reason than the 2s. 10d.. a ton increase to the miners for increasing the price of domestic coal by 14s. 2d., and that he will also give us his assurance that the Board of Trade mean to stand by their decision and not to be jockeyed out of it, either by the Motion for Adjournment or any other effort either by the miners or their representatives. I trust he will, above all things, bear in mind the position of the consumer, who is constantly suffering; and not only labouring men who. are so adequately represented, numerically, in this House. I trust he will also consider the class who are not represented and who, the Financial Secretary told us not so very long ago to-night, are being squeezed and squeezed by organised labour—of which the Government is frightened—on the on hand, and on the other by the force of circumstances— that the Government will endeavour to save from exhaustion that class which is the backbone of the country, as it has been during the whole of our career as a nation.

10.0 P.M.

Were the matter not quite so serious and of the great importance it is to the country, it would be very comic to sit in the Mother of Parliaments and hear such a travesty, misconception, and arrogant assumption by an hon. Member who has not taken the trouble, notwithstanding that he claims to have the interest of the consumer at heart, and who only recently entered the House—never having paid the compliment to the hon. Gentleman who moved the Resolution of listening to the case he made out, nor of listening to those who spoke in favour of it. May I remind both him and the hon. Member on the opposite side of the House that the Motion which has been moved relates to the failure of the Government to differentiate between industrial coal and the coal used for the domestic purposes of the country. I resent very strongly hon. Members coming here and saying that the miners have no regard whatever for the comfort and happiness of the community. My right hon. Friend (Mr. Brace) pointed out that, whatever our shortcomings may be, that the miners' representatives made an offer three clays after the outbreak of the War to enter into a covenant with the South Wales coalowners that the Federation as organised would not ask for an increase of wages subject to the coalowners signing an agreement that prices should not be increased in this country. In this way the Government gave an authority for the coalowners to increase their price by 2s. 6d. per ton, and that commenced the vicious circle as far as South Wales miners were concerned. The coalowners put on 2s. 6d. per ton, and the miners immediately asked for an advance of wages. The miners went almost to the verge of a strike in consequence of that first increase of 2s. 6d. per ton. I do not think, however, that the House or the country is going to benefit by vicious talk in this direction, and it cannot help us at all. On behalf of the miners, I wish to say that at the present moment there are large and important collieries in the South Wales district which are not doing full time work. At a time when coal is scarce and almost unobtainable, the South Wales collieries are not working to that extent that is possible. [HON. MEMBERS: "Why?"] It is not for me to reply to that interruption, because that is for the people who are putting up the price of coal.

I ask those who will speak on behalf of the Board of Trade to explain why they are putting up the price. I can fortify the statement made by the hon. Member for one of the Divisions of Derbyshire (Mr. Holmes). At present we are having an inquiry at Birmingham into the flooding of the collieries, and I find they are suffering there from want of coal. The reason put forward for the scarcity there is that they have no houses for the workmen; there is no labour available, and therefore they are not able to develop the collieries they have. When they were able to recover the flooded collieries caused by the unfortunate water trouble, they had not the labour available, and therefore they cannot house the workmen. For that reason they cannot produce the coal.

Is it not a fact that many mines have been flooded through the men leaving on strike and not working the pumps?

That is not so, as far as South Staffordshire is concerned, and no evidence of that kind can be brought forward. The cause is simply an act of God, for which no one is responsible. I am not, however, talking in general, and I am not flying in any sense of the word. I am simply giving well-authenticated facts that can be examined and they are concrete cases. It is not a question of something that "happened somewhere"; I am giving instances. If you go to the anthracite district you will find collieries working four and four-and-a-half days a week. If you go to South Staffordshire you will find, for reasons over which the men have no control, that coal is not being produced to the extent that would be possible. My hon. Friend the Member for Ogmore (Mr. Hartshorn) has given all the reasons that can be given with regard to the situation in general, but I want to say that I resent very strongly the attempt to place all the blame and responsibility on the shoulders of the miners. We may have been guilty of many things, but as regards the question of prices and the increase of wages the blame does not altogether lie on the shoulders of the workmen. The moment you increase the price of coal, in accordance with the well-established practice of over 40 years, you simply give the opportunity for the men again to ask that wages may be increased commensurately with the increase in price. We are appealing to the authorities to meet us and get into conference. By a round-table conference we may probably not only settle the question with regard to cost, but do something to meet our hon. Friend, who has been in the air, with regard to increasing production so that more coal may be available in the future.

I approach this question, not from the point of view of political economy, but of domestic economy. I was in the House when the right hon. Gentleman introduced the Motion, and have listened to the whole of the Debate. I agree with him that it is a question that interests the women of the country very closely. I was in my constituency this morning, and they feel very keenly this enormous rise in the price of household coal. They told me this morning, "If the only thing you can do when you go to Parliament is to raise the price of our coal by 14s. 2d., the sooner you come out the better." On Saturday afternoon, for the first time in my life, I had the pleasure of visiting the Tower of London, and I saw there a very old instrument of torture; I think they called it the rack. It seemed to me that even there, if they were going to torture people very much, they had made an arrangement for doing it by degrees; there seemed to be, on the wheels of the rack, notches so that they could put on the torture gradually. If the Government made, as apparently they did make, an enormous mistake when they reduced the price of coal by 10s. a ton, it does appear to me to be rather unbusinesslike that they should now make what is apparently almost as big a mistake, or, at any rate, show that they have made a mistake in their calculations, and now put on an advance of 14s. 2d It appears to me that they ought to think very seriously before they put on such a tremendous advance in the price of household coal. I have brought coal to my own home in a little wagon at a less price than the advance they are now putting on per hundredweight. I have taken coal to our house at less than 8½d. a cwt. It shows what the women are having to face in this remarkably big advance. If they are compelled to make it, if no arrangement can be made whereby it can be avoided, I would ask that they do it gradually. I suggest that we do half of it now and the other half at the end of July when the weather will be warmer, and the very poorest people will not feel the advance so much. I am sorry some hon. Members approach this very serious question with such a great amount of levity. It is a very great mistake, and if they themselves had ever been poor, as I have been, they would not think about these things in the light-hearted manner they do. I ask the Government's consideration, not for people like ourselves, but for the very poorest people in the community.

I should like to read a little human document I have received to-day from my own division—

"From the early morn, as soon as the coal depots were open, distressing scenes were witnessed at Smethwick. Queues, 100 yards and more in length, were in constant formation waiting for their pitifully scant quantity of fuel in order to avoid what was freely condemned as a shameful increase. Old men and women and very young children waited long periods for quantities of 28 lbs. and 56 lbs., and at some coal yards where buyers clamoured for a cwt. the rapidly diminishing stocks were severely rationed."

This is not entirely a question for the nation and the coalminers. It is lifted far out of that domain. It becomes a national question for the whole of the consumers in the United Kingdom. What will be the effect, not only among the miners, but amongst all sections of the industrial population? Immediately they will be arranging meetings and trade union conferences for the end of the week. They will state legitimately and justifiably that the Government are once again commencing the vicious circle, and that immediately this increase is imposed upon them, they will have to do what they did with regard to food prices and what they will have to do with regard to rests. They will have to make insistent and persistent demands, not only upon the Government, but upon private employers, for more increases in wages. Which is the best policy for the Government to pursue, "waive their claim to impose this increase for a period or allow these insistent demands for increases in wages? Day by day, week by week and month by month, not only members of the Coalition party, but leaders of the Trade Union party are appealing to the men whose interests we represent to increase production. How are you going to get increased production from the industrial section of the population if at the same time you lower the standard of maintenance of life of those people from whom you are asking increased production? That is inevitably what this means, and I urge the right hon. Gentleman to take these facts into consideration.

I only want to put one question arising out of what has been said by the hon. Member (Mr. Davison). Is it not a fact that there is a strike on at Smethwick, the district to which he has so eloquently referred, and that the reason people are not getting coal there is because the strikers do not permit deliveries of coal? They have stopped the electric light works in the district: they have stopped the gas works, or are very nearly doing so, and the consumer is unable to get any deliveries of coal. Therefore the hon. Member's very eloquent speech as to the difficulties of the consumer arise very much from the fact that the strikers do not permit delivery of coal.

If I may be permitted to reply, seeing that the question has been addressed directly to me, I may say that the people who are on strike are not engaged in connection with electricity, in transit or coal. They are weighing-machine people who are on strike.

They are on the barges which deliver coal to the people in the district and at the electric light works.

I want to make an appeal to the President of the Board of Trade to give us the whole of the figures connected with the price of coal. I represent one of the poorest districts in the Kingdom, the Cotswold Hills, and the wages they live upon is a scandal. The people have to go many miles to get their coal. I know of many Cotswold villages where it takes a day to go to the station and bring coal to the house, and for that one day the cost of fetching that ton of coal is £l. Therefore, if the coal costs £2 or £2 10s. at the station, you have to add to that price £1 upon delivery. These poor people have to send for their coal in tons or half-tons whenever they have the chance, and it has got almost to breaking point. I hope the right hon. Gentleman will let the country know every item of wages, dock and railway charges, if possible the management expenses and the proprietor's profit. It has got to such a stage now that people are getting Very exasperated, and I do not wonder at it. I am the Chairman of the County Council Education Authority for the County of Gloucestershire, and we have had our schools closed because we have not had any coal to go on with. If that is so with a public authority like ours, who are able to pay the price that is demanded, I will leave it to the idea of hon. Members as to the position of the poor people for whom I am speaking, who, in addition to paying the enormous price that is now charged for coal at the station, have to pay, in many cases, £1, and in some cases more than £1, per ton for delivery. Unfortunately, many of these poor people who have retired from business, and have a small income to live upon, are crushed in a way that no other class is crushed.

The working community—I do not care whether they belong to the trade unions or not, or whether they are employers or not—can get increases in their incomes. If they are trade unionists they get their wages increased, and if they are employers they increase the price of the commodity they sell to the public; but these poor people are not able in any shape or form to increase their incomes. On the other hand, their incomes are diminished. It is an absolute fact that in my own county of Gloucester there are poor clergymen who have had to eat dry bread because they could not find money to pay for margarine, let alone butter. That being so, things have got to such a pitch that it is only fair that the Government should, through their spokesman to-night, point out exactly every item that makes up the cost of coal, so that people can see for themselves how it is that they have to pay these high prices. Speaking on behalf of these poor people, it seems to me that every class of the community are trying to be as well off as they would have been if there had been no War. That cannot be. Every class of the community ought to pay its share, but everybody is trying to get more. The working man is getting higher wages, and the manufacturers are getting higher prices for their commodities; but these poor people, who have only small incomes and are not in business and cannot be trade unionists, are hit very hard, and are paying more than their fair share of the cost of the War. It is quite time that something was done to relieve these people.

The circumstances to which the last speaker alluded are undoubtedly of a character which would make any Government pause before doing anything that would tend to increase the difficulty of life for any part of the population. I can assure the House, though it scarcely requires any such assurance, that the Government gave the most anxious and deliberate consideration to all the effects of this policy before it was adopted. We did not in any respect forget that there were people, middle class people, who had no opportunity of raising their income, who would be hit badly by what we are going to do. I am perfectly certain that such people as have been described would suffer very much more than many of the wage-earning classes. I am certain also that this is recognised by my hon. Friends opposite. It was only after we had come to the conclusion that no other course lay open to us that we adopted the policy that was announced in the House two days ago.

My hon. Friend (Mr. T. Davies) asked for a very large catalogue of figures which to-night I am not in a position to give. I shall give certain figures which I hope will elucidate the situation so far as the cost of raising the coal is concerned. But to go into all the other figures to which he has referred, the cost of cartage in the country and transport between different parts of the country and so on, is something which at the present moment without due notice I could not be expected to do, and I hope that he will forgive me if I am not able to satisfy him with regard to that matter. At the outset of my remarks I desire to express my appreciation of the reasonableness and moderation of my right hon. Friend the Member for Abertillery (Mr. Brace) and the hon. Member for Ogmore (Mr. Hartshorn). I am glad to notice in their speeches a tone, may I say, of amity in dealing with this matter which we did not always find in the earlier periods of this controversy.

I am very glad that they are prepared to think so well of the deliberations of an advisory committee constituted of coalowners and representatives of coalminers. I confess that it is to some such organisation as that, that I look with the greatest hope for the future in settling the troubles which may arise from time to time in the coal industry, and I know that in my two hon. Friends opposite I shall find active coadjutors in that work. But the Board of Trade are not prepared to take any blame for the fact that the advisory committee is not in working order to-day or was not in a position to give us the advice which we should have valued much in connection with this very matter. My predecessor in office, and the other officers of the Board of Trade, have done their very utmost in recent months to have that advisory committee set up and working again. For reasons which I need not go into it has not been found possible, yet, though I hope it will be possible soon to reconstitute that committee. My hon. Friend the Member for Ogmore (Mr. Hartshorn) appealed to me to suspend the present decision and to see what the advisory committee think about it, and then to decide what course to pursue. That is an appeal to which I would very gladly have responded under other circumstances, but I beg the House to remember that, when you are dealing with coal and when you are proposing— and this is the root of all our policy— to get rid of control of distribution of coal in this country, the only time when you can do that without upsetting the people of the country very badly is during the summer months. There is bound to be a considerable dislocation when this decontrol takes place. Happily we know that the domestic consumers of the country in the summer consume only half as much coal as they consume in the winter. Accordingly, this is the time to put the project into force. It will be quite hopeless, in my view, to attempt to take the control off distribution in the winter months, if you began at that period. There was no Advisory Committee in existence to consult, although we are trying to set it up again, and we were faced with the necessity of acting at once, otherwise the period would pass when we could act.

I notice that no exception has been taken to increasing the price of coal to the industrial consumer. I am not surprised that that attitude has been taken. Hon. Members have for long said, and quite justifiably, that there was no reason why, at the expense of the coal trade, other industries should earn high profits. To me the logic of that contention was absolutely irresistible. Hon. Members have accepted the policy of the Government in raising the price of industrial coal to a point at which it will meet the cost which is imposed upon the State in producing it and in paying the profits to which the coalowners are entitled under the Coal Emergency Act. What is the situation with regard to domestic consumers? I have been asked for some figures and I propose to show what a ton of coal costs to-day. I do not think that any of the figures will be disputed by any of my hon. Friends opposite because they are very familiar with them. The hon. Member for Ogmore told us that he had been through most of the figures with the Coal Controller from time to time, and the figures I am giving, if not agreed to in every particular, are for the most part figures on which no dispute can arise. The cost of a ton of coal at the pithead, for coal which is "disposable," that is to say for ordinary sale, in this country, is now 31s. 3d. I am leaving out all fractions. That is before you take into account the recent rise in wages, which now has got to be added to the 31s. 3d. which is the cost for the quarter ended 31st of December, 1919. So far as the figures are available up to the end of March, there is no appreciable difference at all in the figures. Out of that 31s. 3d., wages account for 19s. 10d., timber and stores 4s. Id., other costs including management, salaries, workers' compensation, and other insurances, repairs, office selling and other expenses, Is. 7·44d. Royalties 7d., capital adjustments under the Finance Acts 3d. Then I ought to explain of the coal raised not all is sold at the same price. There is a certain amount of coal which goes free to the miners. There is a certain amount of it which goes to the feeding of the boilers and the pits—

My hon. Friend probably knows the whole coalfield of Scotland better than I do, but I am sure it is beyond dispute when I say there are coalfields where undoubtedly miners get coal free, although I have not the slightest doubt that that fact is taken into account in estimating the amount of wages they get. I am talking of it as an item in the account, and you must recognise it. In order to make up for those items, you have got to spread over the whole disposable coal a sum which amounts to 2s. 8d. in the pound, making the cost, apart from the profits to the owners, 29s. 2d. per ton on disposable coal. To that you have got to add what the owners are entitled to under the Coal Mines (Emergency) Act in the way of profits which amounts to 2s. and a penny, making altogether the sum of 31s. 3d. to which I have referred, I do lot wish to exaggerate the matter in any way. Coal which is sold for inland consumption costs approximately a trifle less, for the reason that in the coal fields from which export coal is chiefly taken the costs are in some instances rather more. On working it out it comes to this, that the cost of coal sold for inland consumption is instead of the 31s. 3d. I have mentioned, 30s. 5d. per ton. The price which has been got during the same period for this coal which costs 30s. 5d. per ton, taking both industrial and domestic coal—

Yes, excluding export. The sum is 29s. 1d. But since a concession has been given to the domestic consumer, the price of the coal got at the pit head for the coal which has been consumed in our households was 19s. 1d., making a deficit, so far as the domestic coal was concerned, of 11s. 4d. in the pound.

Seeing that the right hon. Gentleman has given us the cost of producing the coal, can he give us also the realised price of the coal, so that we shall be able to realise the price per ton as against the cost per ton, and then we shall know whether it is a paying concern.

Can the right hon. Gentleman give us also the average output per man in the mines?

I have not got the figures for the average output per man, but I do not think it affects the argument which I am making at the moment. What I am endeavouring to point out to the House is what it costs us, or what it costs the State to put it in that way, to provide a ton of coal to the domestic consumer, and what he pays for it. Accordingly, upon all coal supplied to domestic consumers during the winter there has been a deficit of 11s. 4d. In the case of industrial coal there has been a deficit of Is. 4d. per ton, because the industrial consumer did not have the advantage of the 10s. reduction made to the domestic consumer at the beginning of last winter. Now there has to be added the advance which has been recently given to the coalminers, and the amount of that advance upon the ton is 2s. 10d. I do not think that figure will be disputed, because my hon. Friends opposite are more or less in agreement that the cost of this recent advance to the whole coalfield will be 2s. 10d. per ton. In the aggregate it amounts to £31,300,000, and, according to our calculations—I have observed in the public prints that the figure is not disputed by Mr. Hodges—that sum distributed over 260,000,000 tons, which is the amount of disposable coal, works out at 2s. 10d. on the ton. Accordingly, the deficit which we should be carrying in connection with each ton of coal supplied to the domestic consumer, if we went on in the same attitude as that in which we are now, would be 14s. 2d. We have resolved in the case of the domestic consumer, as in the case of the industrial consumer, to make him pay the economic price of the coal which he purchases.

There are many classes of domestic fuel. Is that the average price for the whole of the country?

My hon. Friend will recollect that coal prices since the beginning of the War have been adjusted more or less in this fashion. The various grades of coal have been still recognised under the new regime as under the old regime, but legislation has been passed from time to time dealing with the increases that could be put upon the old prices. Therefore, these are the average increases which could be put on to the old prices. No doubt the prices in the end vary, because each different grade has still its different price, but the increase on the top of each grade is more or less uniform throughout the country. The case for putting industrial coal on an economic basis has been recognised. Something has been said, on the other hand, with regard to the domestic consumer by way of suggestion that he is entitled to some special benefit. My right hon. Friend the Member for Abertillery (Mr. Brace) raised a question as to the price at which merchants were selling coal to-day or yesterday before the price was actually raised to the domestic consumer. I do not think that there can be any extensive grievance, because we are at the end of the winter months, and, as everybody knows, there are really no stocks in the hands of anybody to be held up. Accordingly we have had no experience of the merchants holding up coal as against the domestic consumer before the actual rise in price begins. But if my right hon. Friend has any particular case in mind to which he can refer me I shall be delighted to investigate it, because we cannot have advantage taken of such circumstances.

Is the right hon. Gentleman aware that when the price of coal was lowered the coal merchants were indemnified to a considerable extent against any losses they might incur on the stocks they had in hand?

I do not propose to go back on past history. What I am dealing with is the effect to-day, without going back on what has been done on previous occasions.

What is the reason for saying that we shall not allow this differentiation to take place any longer as between the industrial consumer and the domestic consumer? The House is well aware—it was stated on the floor of the House at the time—that the reason for giving the domestic consumer the advantage in the beginning of the winter was that we were still in a very exceptional period as a result of the War. Things had not settled down at all in the beginning of last winter in the way they have settled down in the course of the last six months. Everything has assumed during that period a more normal aspect, and, looking to general considerations, there is no longer any reason why that exceptional advantage should be given. More than that, the domestic consumer was looking forward to a period when, as I have said, he used twice as much coal as he used in the summer months, and it was for that exceptional period that we were providing when we gave him that special advantage. As I am sure everybody has become convinced, the period of subsidies in this country must begin to end. These subsidies had a meaning during the War, and they were of importance during the period of reconstruction, when things were abnormal; but if we are ever to get back to a normal condition again, we must begin some time. Now, we think, is the time to begin.

There are other very important reasons why we should make this change now. Differentiation as between the price at which coal is sold to the industrial consumer and the domestic consumer has this result, that you are compelled to have an elaborate system of control and distribution if the domestic consumer is to get his coal at 10s. a ton less than the industrial consumer. It is obvious that you must have an authority that will tell each man who is selling coal where he must send it. What has been the result of that in practice? Anybody familiar with the coal trade will know that the result of central control has been, and must necessarily be, to force coal into markets for which it is not suited. Everyone knows to-day that many people are getting coal of a type that they do not want, and because it is unsuitable to their particular business they have to use far more of it than if they had coal that exactly suited. On the other hand, coal that suited them has been sent to somebody else who does not want that particular type of coal. We have got to get rid of that as soon as we can. More than that, because of the fact that the coalowner does not get into touch with his consumer, he has no interest in the particular class of coal that the consumer gets. I regret to say that one result of this has been a certain amount of lack of supervision throughout the coalfields of this country. It is an undoubted fact to-day that the percentage of dirt amongst the coal is greater than has ever been known before. That is a matter which you can only check if the coalowner once again begins to supply the consumer who wants a particular supply from him and upon whose custom he is going to rely, not merely now but in the future. Accordingly, we regard that as a very important reason for getting rid of this control on internal distribution.

I am sure the House will recognise that there is an even greater factor than any of these. Upon what does the output of this country depend? I have very often heard severe criticism urged against the miners of this country in connection with output, and I am perfectly certain that they are not entirely free from blame; but there are other factors which go to impede the output at the present time. I am not talking merely now of difficulties of transport and rolling stock. There is also a lack of energy on the part of the coalowners of the country as well. What is the reason of that? I am perfectly certain that the reason is this, that they have not got confidence in the future of the industry, that they do not know the precise position in which they stand in the industry to-day. I believe that nationalisation would not only do no good to the coal industry, but would be a positive detriment. I believe absolutely that you would get far better results from the industry under a system of private initiative than you would under a nationalised system, but there is one system which is worse than both, and that is a system in which you have got neither the benefits of nationalisation nor the benefits of private initiative, and that is the system we have got now. If we have made up our minds, as I think everybody knows we have, that nationalisation is not the solution of this problem, it is obvious that we must begin as soon as possible to put the industry on a proper foundation and restore it to its normal basis. The way in which that should be done, according to our view, is to allow the coalowners to begin to manage their own business, and until you have done that I am certain you will have no very great increase in the output of coal in this country.

This argument, so far as we are concerned, has been recently very much reinforced by the circumstances which have developed in the coal trade. The domestic consumer has been subsidised, so far as his coal is concerned, out of the profits obtained from the exports of coal. Everyone realises that; but when you watch the export to-day, what is it you find? You find that your export is going down. In January of this year the export of coal was 3,358,572 tons, in February 2,601,046 tons, in March 2,406,151 tons, and in April 1,995,895 tons. Why has that reduction been taking place? It has been going on, not because the production of coal was less in these particular months, but because more and more coal has been demanded for home industries. As everyone knows, there is a shortage of coal in this country at the present time for inland use. The reason is one upon which we may congratulate ourselves, namely, that our industries are doing more and more work and are prospering more and more from day to day, and it is obviously of far more importance that we should feed our own home industries with coal, so that they may turn out the highly finished article than that we should export the raw material which they use.

There is another fact which is going to affect any profit you may hope to obtain from the export of coal, and it is this: One of the reasons on account of which the price of coal for export has been raised so greatly during the last winter was the American coal strike. For a long time the American coal exporters have not been in a position to export coal for the world's markets, but to-day the position is entirely changed. American coal is beginning to come into European markets in considerable quantities. To-day American coal is selling in France at less price than British coal, and we must anticipate that the price, which for so long has been high, will gradually be reduced. As matters stand now, there is no trustworthy basis upon which you can predict what profits you are going to earn in the future from the export of coal, and, accordingly, upon that ground alone it is surely time that we should put all the coal which we use in this country on a sound foundation, and that everybody who consumes our coal within the United Kingdom should pay the price which is necessary to meet the cost and the profits which, under the Act of Parliament, must go to the owners.

On the other hand, suppose there should be some profit. Somebody suggested the other night that the State was going to profiteer. That would be an erroneous phrase to use with regard to anything the State proposes to do. In the first place, nobody has ever suggested that upon your foreign trade you were not entitled, and indeed bound, to get the best prices you could, and therefore, anything we make out of the export trade is surely not in the nature of profiteering. The truth is that with regard to this matter the State, so far from profiteering, has all along been making a considerable sacrifice. Suppose you had coal to-day put into the same position as any of our other great industries; suppose it was in the position of the woollen trade or the cotton trade, you would be realising in this country for the coal you were selling something immensely higher than is being charged in this country to-day, something immensely higher than you are going to pay under the price we have announced this week. What is the result to-day of what takes place in the cotton and woollen trades? Why, very large profits are being made, far in excess of those made before the War; but the State last year took 40 per cent, and this year is going to take 60 per cent, of these excess profits. If the coal trade were de-controlled, I ask the House to imagine what kind of sum the State would derive from the Excess Profits Duty on the coal industry. There is one thing I can say without question, without going into any meticulous particulars of calculation, that what the State would take under those circumstances would be well over £100,000,000. The coalowner to-day gets none of the Excess Profits because he is limited to the profit he got upon his standard before the War, and the narrow margin allowed under the Coal Emergency Act, which permits him to take 10 per cent, of a certain surplus. It amounted last year to the sum of £665,000 altogether, I think, and it can never amount to much. He could never get Excess Profits as he could in any other industry in this country, and the consumer in these islands has been benefited, partly at the expense of the coalowner, whose profits, as I have said, are limited, and partly at the expense of the Exchequer. That is really how matters are working out, and even if the State should, under the arrangement I have put before the House, get substantial profits out of the industry, the State would still be getting immensely less than the coal industry would, under ordinary circumstances, be paying into the Exchequer.

I venture to say that it is not an extreme proposition to put before the House and the country that the coal industry should bear some portion at least of what otherwise would have to be paid to the Exchequer in the shape of Excess Profits Duty. I know that a sense of hardship is created at the present time by what is proposed to be done. One realises that to add 14s. 2d. a ton to the coal of the ordinary domestic consumer may put a strain upon many small householders. But I would ask the House to view this matter in its proper perspective. It is nothing like the hardships that our Allies are bearing to-day. Compare the position of the ordinary citizen with the citizen, of France. [An HON. MEMBER: "Coal is cheaper there!"] The domestic consumer cannot get coal in France at less than 140s. per ton.

But you said just now that France was importing coal from the States cheaper than they were getting it from this country?

It still costs him 140s. per ton. Take other elements in the cost of living and you will find that the British citizen is in a preferable position, for the cost of living here has not gone up to anything like the same extent that it has in France. On the other hand, I would ask the House to remember that while these prices no doubt look high, the country is day by day getting into a better position as a result of the progress that is being made in industry. Unemployment is less now than at any period, even the best, before the War. If you look at the analyses and the condition of our children in the public schools, you will find that the universal reports of the inspectors are to the effect that the children are better fed and better clothed than in the years before the War; and that there are fewer free meals now being given to badly-nourished children than at any time since they were established. We are, I think, entitled to congratulate ourselves on the position in which the country finds itself. It is not too much to say that this is an opportune moment to put upon its proper foundation, an industry whose progress and whose development are the necessary foundation of the prosperity of all the industries of this country.

Question put: "That this House do now adjourn."

The House divided: Ayes, 49; Noes, 185.

Division No. 107.]

AYES.

[11.0 p.m.

Barnes, Major H. (Newcastle, E.)

Hartshorn, Vernon

Roberts, Frederick O. (W. Bromwich)

Bell, James (Lancaster, Ormskirk)

Hayday, Arthur

Rose, Frank H.

Benn, Captain Wedgwood (Leith)

Hayward, Major Evan

Sexton, James

Bowerman, Rt. Hon. Charles W.

Hirst, G. H.

Short, Alfred (Wednesbury)

Brace, Rt. Hon. William

Holmes, J. Stanley

Sitch, Charles H.

Bromfield, William

Kelly, Edward J. (Donegal, East)

Smith, W. R. (Wellingborough)

Brown, James (Ayr and Bute)

Kenworthy, Lieut.-Commander J. M.

Swan, J. E.

Cape, Thomas

Lawson, John J.

Thomas, Lieut.-Col. Sir O. (Anglesey)

Carter, W. (Nottingham, Mansfield)

Lunn, William

Walsh, Stephen (Lancaster, Ince)

Davies, A. (Lancaster, Clitheroe)

Lynn, R. J.

White, Charles F. (Derby, Western)

Davison, J. E. (Smethwick)

Maclean, Rt. Hon. Sir D. (Midlothian)

Wignall, James

Edwards, C. (Monmouth, Bedwellty)

Malone, Lieut.-Col. C. L. (Leyton, E.)

Wilson, Rt. Hon. J. W. (Stourbridge)

Finney, Samuel

Mills, John Edmund

Wilson, W. Tyson (Westhoughton)

Galbraith, Samuel

Morgan, Major D. Watts

Young, Robert (Lancaster, Newton)

Glanville, Harold James

Murray, Dr. D. (Inverness & Ross)

Graham, D. M. (Lanark, Hamilton)

Myers, Thomas

TELLERS FOR THE AYES.—

Grundy, T. W.

Parkinson, John Allen (Wigan)

Mr. T. Griffiths and Mr. Nell

Guest, J. (York, W. R., Hemsworth)

Richardson, R. (Houghton-le-Spring)

Maclean.

NOES.

Adair, Rear-Admiral Thomas B. S.

Cecil, Rt. Hon. Lord H. (Ox. Univ.)

Greenwood, William (Stockport)

Agg-Gardner, Sir James Tynte

Chadwick, R. Burton

Gretton, Colonel John

Ainsworth, Captain Charles

Child, Lieut.-Colonel Sir Hill

Hacking, Captain Douglas H.

Archer-Shee, Lieut.-Colonel Martin

Coates, Major Sir Edward F.

Hallwood, Augustine

Astbury, Lieut.-Commander F. W.

Conway, Sir W. Martin

Hall, Lieut.-Col. Sir F. (Dulwich)

Atkey, A. R.

Cope, Major Wm.

Hanna, George Boyle

Baird, John Lawrence

Craig, Colonel Sir J. (Down, Mid)

Haslam, Lewis

Balfour, George (Hampstead)

Davidson, Major-General Sir J. H.

Henderson, Major V. L. (Tradeston)

Banbury, Rt. Hon. Sir Frederick G.

Davies, Alfred Thomas (Lincoln)

Hennessy, Major J. R. G.

Banner, Sir John S. Harmood-

Davies, Sir David Sanders (Denbigh)

Henry, Denis S. (Londonderry, S.)

Barker, Major Robert H.

Davies, Thomas (Cirencester)

Herbert, Denis (Hertford, Watford)

Barlow, Sir Montague

Dewhurst, Lieut.-Commander Harry

Hoare, Lieut.-Colonel Sir S. J. G.

Barnett, Major R. W.

Edwards, Major J. (Aberavon)

Holbrook, Sir Arthur Richard

Barnston, Major Harry

Eyres-Monsell, Commander B. M.

Hood, Joseph

Beauchamp, Sir Edward

Falcon, Captain Michael

Hope, H. (Stirling & Cl'ckm'nn'n,W.)

Bell, Lieut.-Col. W. C. H. (Devizes)

Fildes, Henry

Hope, James F. (Sheffield, Central)

Benn, Sir A. S. (Plymouth, Drake)

Fisher, Rt. Hon. Herbert A. L.

Hope, Lt.-Col. Sir J. A. (Midlothian)

Benn, Com. Ian H. (Greenwich)

FitzRoy, Captain Hon. E. A.

Hope, J. D. (Berwick & Haddington)

Betterton, Henry B.

Flannery, Sir James Fortescue

Hopkins, John W. W.

Blake, Sir Francis Douglas

Ford, Patrick Johnston

Hopkinson, A. (Lancaster, Mossley)

Bowyer, Captain G. E. W.

Forestier-Walker, L

Horne, Sir R. S. (Glasgow, Hillhead)

Breese, Major Charles E.

Forrest, Walter

Hotchkin, Captain Stafford Vere

Bridgeman, William Clive

Foxcroft, Captain Charles Talbot

Howard, Major S. G.

Briggs, Harold

Fraser, Major Sir Keith

Hunter-Weston, Lieut.-Gen. Sir A. G.

Brittain, Sir Harry

Fremantle, Lieut.-Colonel Francis E.

Hurd, Percy A.

Britton, G. B.

Gange, E. Stanley

Jephcott, A. R.

Brown, Captain D. C.

Ganzoni, Captain Francis John C.

Jodrell, Neville Paul

Brown, T. W. (Down, North)

Gibbs, Colonel George Abraham

Johnstone, Joseph

Bruton, Sir James

Gilmour, Lieut.-Colonel John

Jones, Sir Evan (Pembroke)

Buckley, Lieut.-Colonel A.

Glyn, Major Ralph

Jones, G. W. H. (Stoke Newington)

Burdon, Colonel Rowland

Goff, Sir R. Park

Jones, Henry Haydn (Merioneth)

Campbell, J. D. G.

Green, Albert (Derby)

Jones, J. T. (Carmarthen, Llanelly)

Carter, R. A. D. (Man., Withington)

Green, Joseph F. (Leicester, W.)

Kidd, James

Casey, T. W.

Greene, Lieut.-Col. W. (Hackney, N.)

Lane-Fox, G. R.

Law, Rt. Hon. A. B. (Glasgow, C.)

Pennefather, De Fonblanque

Sturrock, J. Leng

Lewis, Rt. Hon. J. H. (Univ., Wales)

Perkins, Walter Frank

Sugden, W. H.

Lindsay, William Arthur

Philipps, Sir Owen C. (Chester, City)

Surtees, Lieut.-Colonel H. C.

Lister, Sir J. Ashton

Pollock, Sir Ernest M.

Talbot, G. A. (Hemel Hempstead)

Lorden, John William

Pratt, John William

Taylor, J.

Lort-Williams, J.

Preston, W. R.

Terrell, Captain R. (Oxford, Henley)

Macquisten, F. A.

Prescott, Major W. H.

Thomas, Sir Robert J. (Wrexham)

Maddocks, Henry

Pulley, Charles Thornton

Thomson, F. C. (Aberdeen, South)

Mallalieu, F. W.

Purchase, H. G.

Thomson, Sir W. Mitchell-(Maryhill)

Manville, Edward

Rankin, Captain James S.

Townley, Maximilian G.

Marriott, John Arthur Ransome

Ratcliffe, Henry Butler

Vickers, Douglas

Middlebrook, Sir William

Reid, D. D.

Waddington, R.

Mildmay, Colonel Rt. Hon. F. B.

Richardson, Sir Albion (Camberwell)

Walters, Sir John Tudor

Moles, Thomas

Robinson, S. (Brecon and Radnor)

Waring, Major Walter

Molson, Major John Elsdale

Rodger, A. K.

Warren, Lieut.-Col. Sir Alfred H.

Mond, Rt. Hon. Sir Alfred M.

Roundell, Colonel R. F.

Wheier, Lieut.-Colonel C. H.

Moore, Major-General Sir Newton J.

Samuel, Samuel (W'dsworth, Putney)

Whitla, Sir William

Moore-Brabazon, Lieut.-Col. J. T. C.

Sanders, Colonel Sir Robert A.

Williams, Lt.-Com. C. (Tavistock)

Moreing, Captain Algernon H.

Seddon, J. A.

Williams, Lt.-Col. Sir R. (Banbury)

Mount, William Arthur

Seely, Major-General Rt. Hon. John

Wilson, Daniel M. (Down, West)

Munro, Rt. Hon. Robert

Simm, M. T.

Wilson, Lt.-Col. Sir M. (Bethnal Gn.)

Murray, John (Leeds, West)

Smith, Sir Allan M. (Croydon, South)

Wilson-Fox, Henry

Murray, Major William (Dumfries)

Smithers, Sir Alfred W.

Wood, Sir J. (Stalybridge & Hyde)

Nail, Major Joseph

Sprot, Colonel Sir Alexander

Yeo, Sir Alfred William

Neal, Arthur

Stanier, Captain Sir Seville

Young, Lieut.-Com. E. H. (Norwich)

Nicholson, Reginald (Doncaster)

Stanley, Major H. G. (Preston)

Oman, Charles William C.

Steel, Major S. Strang

TELLERS FOR THE NOES.—

Palmer, Lieut.-Colonel G. L.

Stewart, Gershom

Lord E. Talbot and Mr. Dudley

Parker, James

Strauss, Edward Anthony

Ward.

Private Business

Coventry Corporation Bill (by Order),

Third Reading deferred till To-morrow, at a quarter-past Eight of the clock.

Wallasey Corporation Bill (by Order),

Consideration, as amended, deferred till To-morrow, at a quarter-past Eight of the clock.

The remaining Orders were read and, postponed.

Coal Prices

Motion made, and Question proposed, "That this House do now adjourn."—[ Lieut.-Colonel Sir B. Sanders. ]

While the President of the Board of Trade is still here, I should like to ask him a question which I would have asked in the Debate had there been an opportunity. We understood that the Government had a coal policy. There was a great dispute in the industry, and it was referred to a Commission. At first we understood that the decision of the Commission would be accepted. The award was given by Mr. Justice Sankey and then rejected by the Government. We were then informed that they had a policy. It was to include the purchase of mineral rights, as I understood, and to set up some form of co-operative management of the coal industry which would give us what we needed, namely, increased output. The President of the Board of Trade made a speech in which, so far as I understood it, he threw the whole thing overboard. He said the thing we had to do now was to get back again to the old days of private control of coal. That may be a good thing or a bad thing, but I should be very interested to know that we have now seen the last of this policy. The Prime Minister said that in the spring we were going to get 4s. down on the cost of living, but we have 14s. 2d. increase on the cost of coal instead. As that has disappeared so the policy in regard to coal has disappeared. It would be interesting if the President of the Board of Trade could tell us whether I am right in supposing that these Bills of which we have heard so much, and the introduction of which we have awaited with so much impatience, have all disappeared into thin air, and we shall hear nothing more of the matter at all.

I want to make one protest against the statement that we are entitled to make what we like on our export trade in coal. That matter is raising much soreness in the hearts of our very faithful Allies in France, and it is a matter that is bound to be brought up at the Economic Conference at Spa. I rise in order that, at any rate, one Member may make a protest against that very cynical and immoral policy of charging the very highest we can, and profiteering out of the needs of Europe, and our Allies in particular, in coal.

The right hon. Gentleman has indicated to us what the policy of the Government is going to be. They are going to release coal from control, and it will be in the same position as wool and cotton trades, and they will take their share of the excess profits, and prices are going to find their economic level which will be the world level of prices. Is that happy state of things for the Exchequer and the coalowners coming into force after 31st August, and may we look upon it that the close time for the coal consumer will end on 31st August, and after that date the coalowner and the Exchequer will be able to take their will of him?

I am very much touched at the suggestion that I am in a position to answer all the questions the hon. and gallant Gentleman has put to me. It is obvious that no one less than the Prime Minister would be a suitable spokesman for such an occasion. There seems to be a habit amongst hon. Members opposite to draw quite unnecessary inferences from simple and innocent statements. Although I have not been very long in the House I am not so innocent a person as to fall into the trap which has been set for me. I admire the fervour with which my hon. and gallant Friend has defended the position of his friends throughout Europe.

The hon. and gallant Gentleman has taken an interest in more of them in a more diverse form. With regard to what the hon. and gallant Gentleman (Captain Benn) asked me, I am very glad he said he was only an ordinary observer, because his questions were directed rather from the point of omniscience than the attitude of a seeker after truth. The question the hon. and gallant Gentleman asks is whether the Government still have a policy on coal. I can answer that with great candour. It has.

That, again, is a matter which depends to some extent on the time my hon. and gallant Friend takes upon other measures. That it will be produced there is no doubt whatsoever. It must not be assumed that in any respect it is sought to put the coal trade back upon the same basis as the wool or the cotton trade are to-day. The remarks that I made at the end of my speech were to the effect that if it were, certain things would follow and that, therefore, it would not be unjust to say that a certain amount of what other industries had to pay to the Exchequer should be paid by the coal trade, but I made no asseveration at all from which anyone could derive the inference that the coal trade was to be put in the same position as these other trades. Nothing I said was inconsistent with the proposal that the mineral royalties of this country should be acquired by the Government. That is consistent with everything I said. On the other hand, the hon. Member referred to the speech of the Prime Minister, in which he adumbrated a scheme of district control. That scheme was rejected both by the coal miners and by the coal owners, and if my hon. and gallant Friend had been as good an observer on this matter as he is with regard to other things, he would have remembered that because it was rejected by both of the parties who would be affected by the scheme, it was announced that that scheme was not to be proceeded with. I have given all the information which the hon. Gentleman has asked for, and if he will allow me, I will sit down.

The right hon. Gentleman l has with the greatest courtesy endeavoured to answer certain questions. There is one important matter which we would all like to have explained, and no doubt the country as a whole is deeply interested in it. Have the Government prepared their scheme, and, if so, when is it going to be introduced? These are definite and specific questions which admit of a very short answer and will not take two seconds to reply to. I should be very much obliged if he could give us that information.

Can the right hon. Gentleman say whether this Bill will be introduced before the Anti-Dumping Bill or not?

The right hon. Gentleman has exhausted his right to speak.

Question put, and agreed to.

Adjourned accordingly at Eighteen Minutes after Eleven o'Clock.