House of Commons
Thursday, May 13, 1920
New Writ,
for County of Lincoln, County of the Parts of Lindsey (Louth Division), in the room of Captain Henry Langton Brackenbury, deceased.—[ Lord Edmund Talbot. ]
Private Business
Private Bills [ Lords ] (Standing Orders not previously inquired into complied with),—Mr. DEPUTY-SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bills, originating in the Lords, and referred on the First Reading thereof, the Standing Orders not previously inquired into, and which are applicable thereto, have been complied with, namely:—
Tees Valley Water Bill [ Lords ].
Belfast Water Bill [ Lords ].
Ordered, That the Bills be read a Second time.
Private Bill Petitions [ Lords ] (Standing Orders not complied with),—Mr. DEPUTY-SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the Petition for the following Bill, originating in the Lords, the Standing Orders have not been complied with, namely:—
Londonderry Bridge Commissioners Bill [ Lords ].
Ordered, That the Report be referred to the Select Committee on Standing Orders.
Huddersfield Corporation (Lands) Bill, Leigh Corporation Bill,
Read the Third time, and passed.
Liverpool Corporation Waterworks Bill (King's Consent signified),
Bill read the Third time, and passed.
Tyne Improvement Bill [ Lords ] (King's Consent signified),
Bill read the Third time, and passed, with Amendments.
Blackpool Improvement Bill,
As amended, considered; to be read the Third time.
Redcar Urban District Council Gas Bill (by Order),
Consideration, as amended, deferred till Monday next, at a quarter-past Eight of the Clock.
London County Council (Money) Bill (by Order),
Read a Second time, and committed.
Wandsworth, Wimbledon, and Epsom District Gas Bill [ Lords ] (by Order),
Second Reading deferred till Monday next.
Oral Answers to Questions
Naval and Military Pensions and Grants
Medical Boards, Cheltenham Terrace
asked the Minister of Pensions whether he is aware that the members and chairmen of the pensions board at Cheltenham Terrace have been cut down to about one-third of their previous service; what is the cause for this reduction; is it in the best interest of the Pensions Ministry to dispense with the services of men who know the work; will it be in the interests of men who apply for pensions; is the policy of short time for doctors likely to obtain the best class of men for the work; and does the arrangement lead to grave delay in dealing with cases submitted?
There is at present a considerable decrease in the amount of work available for the Medical Boards at Cheltenham Terrace, the chief reason being that the examinations for the renewal of pensions granted early in 1919 to demobilised men have been cleared off. It has not, therefore, been necessary to employ doctors to the same extent as was done some little time ago. I may say, however, that the whole question of the distribution of cases among the various Boards is under careful consideration. I am not aware that there has been grave delay in dealing with cases.
If I bring cases of delay to the attention of the right hon. Gentleman, will he inquire into the whole matter and see whether the present system does not need revision?
I shall be very glad to receive any cases of delay, either from my Noble and gallant Friend or from any other Members of the House.
Shropshire Light Infantry (Captain Shearer)
asked the Minister of Pensions if he is aware that Captain W. Campbell Shearer, 4th King's Shropshire Light Infantry, was discharged from the Army with severe injury to the right hand, and has been awarded 30 per cent. pension; and whether, in view of the fact that before the War his occupation was that of a dentist for which he is now almost wholly incapacitated, he can hold out hopes that the amount of pension can be reconsidered?
The award made to this officer at the scale rate for 30 per cent. disablement was superseded by alternative retired pay which was based on prewar earnings. The Medical Board, however, by whom he was last examined have assessed his disablement at under 20 per cent., and his retired pay has therefore had to cease. He has appealed against this assessment, and his appeal is to be heard very shortly by an Appeal Board, on whose report his case will be further considered.
Women's Royal Air Force (Mrs. I. M. Hibbert)
asked the Minister of Pensions whether Mrs. Isabel May Hibbert enlisted in the Women's Royal Air Force (Salvage Section) on the 25th July, 1918, and was discharged on the 3rd February, 1919, during which period she developed valvular disease of the heart; whether she has been refused any pension or gratuity; and whether he will undertake that the matter shall be again investigated?
My right hon. Friend has asked me to reply. Mrs. Hibbert enrolled in the immobile division of the Women's Royal Air Force, as a general unskilled worker, and was discharged on medical grounds, on the dates mentioned. Members of the W.R.A.F. were civilians, and under Regulations no pension is payable to them in any circumstances, but compensation is payable in respect of accident arising out of and in course of employment within the meaning of the Workmen's Compensation Act, 1906. Compensation to Mrs. Hibbert was refused, as, in the view of the Department's medical officers, there was no reason to suppose that her complaint was due to injury or otherwise attributable to her service in the W.R.A.F. With regard to the last part of the question, as no evidence has been adduced to prove such injury by accident, I am not prepared to call for the further investigation which the hon. Member has suggested.
Female Clerks
asked the Minister of Pensions what is the cause of the delay in terminating the employment of female clerks in the Pensions Ministry who are supernumerary to the requirements of the Department: and if he can see his way to instant notice being given to such clerks, so as to save further unwarrantable expenditure?
It is only within the last few days that female staff has become surplus to requirements at Chelsea, and, in connection with the demobilisation of that surplus staff, the opportunity is being taken to review the qualifications of each individual member of the female staff, so that the least effi- cient members may be selected for discharge. Notices have already been served on number of such officers.
Aygyll and Sutherland Highlanders (Lieutenant Acton)
asked the Minister of Pensions if he is aware that Lieutenant Acton, late Argyll and Sutherland Highlanders, was examined by a medical board on the 5th September, 1919, with a view to the continuance of his temporary disability pension which expired on that date; that no award was made until 9th January, 1920, and being at a reduced rate was appealed against, with the result that on the 16th March he was notified that sanction had been given for an increase to the maximum rate; whether, in spite of repeated applications to the Pensions Office, he has been unable to obtain a statement of the amount of the grant and cannot get payment of it; will he say what is the cause of this delay; and will he take steps to have the necessary notifications made forthwith, seeing that eight months' pension is now due?
There was, I regret to say, some delay in awarding the retired pay in this case. The award was, however, made and notified at the beginning of January, and the subsequent delay must be attributed to the failure of Lieutenant Acton to apply to the Paymaster-General (as he was instructed to do) for payment. The additional retired pay awarded under Article 6 of the Warrant in respect of treatment is issuable by the Ministry, and payment has now been made for the certified period of eight weeks expiring 28th February. I am immediately considering whether payment for a further period can be made.
Ring Papers
asked the Minister of Pensions whether he is aware that several months' delay sometimes takes place after the authorisation of a pension before the ring paper is issued; and whether, in view of the hardship caused to pensioners and their families after the cessation of the provisional pension, he will arrange for ring papers always to be issued simultaneously with the notification of pension
The arrangements made are designed to secure that the dispatch of the ring paper shall follow without delay upon the notification of the award. I am aware that in some cases delay occurs, and I am doing all in my power to remove the causes of these delays and to prevent their recurrence. I may, perhaps, inform my hon. and gallant Friend that an award is notified to the man's Local Committee at the same time as to the man himself, and that if any serious delay occurs in payment, and the man is suffering hardship, the Local Committee can make advances of pension on application being made to them.
Is the right hon. Gentleman aware that considerable disorganisation appears to exist in the Pensions Issue Office, and that letters addressed to Baker Street on matters relating to ring papers and so forth apparently produce no result?
If my hon. and gallant Friend can produce any cases to me I will have them immediately looked into.
Middlesex Regiment (P. C. Burns)
asked the Minister of Pensions whether, having regard to the statement that the staff at Burton Court, Chelsea, is in excess of requirements, he will state why the case of Peter C. Burns, late private, No. 33,089, Middlesex Regiment, of 40, Woollier Road, Edmonton, has been delayed since February and no settlement yet arrived at?
Pension was refused to Mr. Burns on 19th February last on the ground that his disability was neither due to nor aggravated by service. He has appealed against that decision, and the papers are being now despatched to the Appeal Tribunal. The delay in putting forward the appeal has been due to the conflict of medical opinion, a matter in which the surplus female staff could render very little assistance.
If the pensions staff at Burton Court is in excess of requirements, as stated in the question, can the right hon. Gentleman say what accommodation is being given up there?
I cannot say, but my hon. and gallant Friend might put down a question as to that.
Ex-Service Men
Land Settlement, Ireland
asked the Chief Secretary for Ireland whether he is aware that in numbers of cases land has been taken under compulsion from owners and farmers in the west of Ireland, and that in other cases land which had been purchased for demobilised soldiers has been forcibly occupied and stocked by young men, who threaten with death anyone, including the soldiers, who may interfere with them; and whether the Government will forthwith take steps to make it known that no lands so taken contrary to law will be allowed to be retained, but that all such lands will be restored to the lawful owners?
There have been a number of cases in which lands have been taken under compulsion in the west of Ireland, and in one case land which had been purchased for demobilised soldiers has been forcibly occupied. In all these cases every assistance will be given to have the land returned.
Will the right hon. Gentleman take steps, through the Publicity Department at Dublin Castle, to make this known to these wretched people in Ireland, as they do not make a habit of reading Parliamentary Debates?
Certainly.
asked the Chief Secretary for Ireland whether the Irish Land Commission has been endeavouring to acquire land for settlement by ex-members of His Majesty's forces; whether any land has been so acquire; whether letters have been received by Government officials threatening them with violence if they attempt to acquire land for ex-members of His Majesty's forces; whether landowners have been deterred from completing negotiations with the Land Commission by similar means; and what steps the Government propose taking to carry out their pledge to provide land for those who have served their country in the War?
I would refer my hon. and gallant Friend to the reply given by the Leader of the House on Tuesday to a similar question asked by my hon. and gallant Friend the Member for Fylde Division of Lancaster.
Is there any scheme by which when land cannot be got for these men in Ireland they can be helped out to the Colonies?
No, I do not think the recent Act provides for placing men in the Colonies.
Small Holdings, Scotland
93 and 94.
asked the Secretary for Scotland (1) whether he is aware that negotiations were so far advanced between ex-service applicants for small holdings upon the farm of Maryfield and the local commissioner that one of the applicants has given up his house and purchased equipment and stock preparatory to entry on 28th May; whether this man will be compensated;
(2) whether he is aware that the farm of Maryfield, upon the Terregles estate, was recently visited by the local commissioner, accompanied by ex-service applicants, for the purpose of arranging the establishment of the latter upon the farm; whether this farm is the only farm upon the estate available for small holdings at Whit Sunday, 1920; whether the Scottish Board of Agriculture are in course of acquiring a farm in Ayrshire now tenanted by the gentleman to whom it is proposed to sell Maryfield; whether the proposed sale of Maryfield is part of an arrangement by which the Board will acquire the Ayrshire farm referred to in 1921; and whether, in view of the delay in settling smallholders which this transaction involves, he will decline to sanction it
I am in communication with the Scottish Board of Agriculture, but am not yet in full possession of the facts. When I have obtained them, I shall communicate with my hon. and gallant Friend.
Ireland
Teachers' Pensions
asked the Chief Secretary for Ireland the amount of funds accumulated in the Irish teachers' pension fund, including the £1,300,000 from the Irish Church Fund; and whether he will state why the Irish pensioned teachers, some of whom are paupers in the work- house, have not received the same benefits from these accumulated funds as have been given to pensioned teachers in Scotland?
to the TREASURY (Mr. Baldwin): It has been decided that pensioned Irish teachers shall be eligible for the benefits recommended by the Cabinet Committee for pre-War State pensioners generally. The amount accumulated in the Irish Teachers' Pensions Fund, including the £1,300,000 from the Irish Church Fund, is £3,018,833. Having regard to the future liabilities of the fund, it is clear that it cannot at present bear the increased burden placed en it by this decision. The method of meeting the situation which has arisen is under consideration.
Will these increases be retrospective?
I have not the date in my mind, but the additions to pre-War pensions will be all paid as from the same date.
Mountjoy Prison (Prisoners Released)
asked the Chief Secretary for Ireland whether he can state if any, and, if so, how many, of the prisoners recently released from Mount-joy Prison, Dublin, had been arrested on suspicion of being implicated in murder: and for what terms they were released?
In one case a prisoner on hunger strike was released who had been arrested on suspicion of being implicated in murder, owing to a misunderstanding. Steps are being taken to have him re-arrested.
Was there only one case?
Yes, Sir, that is my information.
Have any steps been taken to bring him to trial?
Yes.
Before what tribunal? Mr. HENRY: Before a jury.
asked the Chief Secretary for Ireland whether all or any of the convicted prisoners released from Mountjoy Prison, Dublin, are now under police custody or supervision; and, if not, how is it proposed to secure their rearrest?
I have already stated, in reply to the hon. Member for the Wrekin Division on Thursday last, that a number of convicted prisoners on hunger strike were released under a misunderstanding. They were not discharged under the provisions of the Temporary Discharge of Prisoners Act, 1918, and they are not legally liable to re-arrest.
If these men were discharged from prison by a pure blunder, and were convicted of crime, is it not right that the Executive should take immediate steps to re-arrest them'?
It was necessary to pass the Act to which I referred to enable persons discharged during the time of their sentence to be re-arrested. These prisoners were not discharged under that Act.
But inasmuch as they were discharged by a mistake, and, as I think the hon. Gentleman informed me, it is proposed to re-arrest them, when are they to be re-arrested?
I have already said they cannot be re-arrested once they are free.
Was it not understood these men were liberated on parole?
Is not the real reason why you cannot re-arrest them because they are not sentenced?
No, these are convicted cases.
asked whether the Lord Lieutenant of Ireland sent verbal instructions to the Governor of Mountjoy on the occasion of the release of the Sinn Fein hunger strikers through the Lord Mayor of Dublin; whether, the Governor refusing to accept them, the Lord Mayor returned to the Viceregal Lodge, secured from the Lord Lieutenant written instructions to the effect that all Sinn Fein prisoners were to be released, and that it was through acting strictly on those instructions that 34 convicted prisoners were liberated; and whether any steps have been taker, to secure the re-arrest of the prisoners set free in error?
I beg to refer my hon. Friend to the reply given to a similar question addressed by him to the Prime Minister on Thursday, 6th instant. As to the last part of the question, I have already dealt with it to-day in reply to my hon. and learned Friend the Member for York.
Were we not given to understand that the Sinn Fein hunger strikers were released on parole, and are we to understand that convicted criminals were released without any conditions?
I have already said so.
Land Sale, County Leitrim
asked the Chief Secretary for Ireland if he is aware that Henry Johnston, of Augnagallop, in the parish of Drumshambo, county Leitrim, was left a farm in Drumkeelin by an uncle who died in 1910, and has farmed it since without claim or dispute, but desiring to purchase a farm adjoining his own residence he put up the farm bequeathed to him by his uncle 10 years ago for sale; if on the day of the sale a mob gathered and prevented Mr. Johnston selling unless he paid £200 to a Mrs. Flynn, a niece of his late uncle, but who has no claim nor ever made any on the land, which he was forced to do, and also to obtain much less than he otherwise would for the farm: and whether there is any prospect of any protection for law-abiding people or prospects of enforcement of the law of the land in County Leitrim?
asked the Chief Secretary for Ireland whether he is aware that the owner of a farm of 12 acres in County Leitrim recently put this farm up for sale; that 150 to 200 men came to the sale and forbade the owner to sell the farm unless he agreed to pay £200 to a person named by them, who had no interest whatever in the farm; whether the owner was compelled to comply with this request and sell the farm at a price far below its value; and what steps His Majesty's Government propose to take to put a stop to proceedings of this kind; which are now of constant occurrence in. Ireland?
The facts stated in the first part of the questions are correct. On the day of the sale a Mrs. Flynn, Mohill, who is a relative of Johnston, attended the sale, and made a claim for £200. A number of persons in the crowd supported her, and in the end he gave her a cheque for this sum. He has since stopped the cheque, and is again in possession of his farm. He will not prosecute.
Mails (Protection)
asked the Chief Secretary for Ireland whether the car conveying the mails from Nenagh to Thurles was stopped on the night of 8th May and police correspondence stolen; and whether the precautions recently announced for guarding the mails while in transit by mail car had been taken in this instance?
The facts are as stated. It is probable that some police correspondence was seized. I am informed that police are not available for the purpose of affording special protection in all cases.
What is the exact position at present as regards martial law? When is it going to be put in force?
Has crime in Ireland increased by 1,000 per cent. since the Home Rule Bill was introduced?
That does not arise out of the question.
Malicious Injuries (Compensation Claim, Claremorris)
asked the Chief Secretary for Ireland whether his attention has been directed to the proceedings of the Claremorris District Council at the meeting of that body on 5th May, when the Council demanded from Mr. Martin Curran, J.P., a farmer in the district, the withdrawal of claims lodged by him for compensation for cattle drives and personal injuries, and a refund, less five per cent. of his profits, from the grazing lands he had held; whether he is aware that Mr. Curran refused to do so, and the Chairman of the Council stated at the meeting that the matter would now be referred to a higher tribunal which would be able to give effect to the wishes of the Council; that it was decided not to state definitely the methods of the higher tribunal in the enforcement of its decrees; that the Chairman announced that those grazers who refused to obey would be responsible for the consequences to themselves: and whether the Government are prepared to allow local authorities to be used as part of the terrorist machinery in Ireland?
I have seen a newspaper report to the effect stated by the hon. and gallant Member. The official record of the meeting of the District Council does not show any resolution. I am having inquiries made, and if evidence is available anyone guilty of intimidation will be prosecuted. The answer to the last part of the question is in the negative
Will the Government direct a prosecution of any members of this District Council if they took part in illegal action?
When people are compelled through terror to withdraw their claim for compensation for malicious injuries can the time be afterwards extended so that the claim may come up at a later date?
I am considering that very question at the present moment.
Local Elections (Anti-Sinn Fein Candidates)
asked the Chief Secretary for Ireland whether he is aware that various candidates for election to county local authorities who are standing in opposition to Sinn Fein have been compelled to withdraw their candidature by acts and threats of violence; and what steps does he propose to take to protect these candidates in the exercise of their rights?
A number of such cases of intimidation have been reported. Police are not available to protect all candidates. Many of them live at considerable distances from police barracks, and would not desire protection. If any candidate asks for protection, it will be given as far as possible.
Education Bill
asked the Chief Secretary for Ireland when the Government proposes to take the Second Reading of the Irish Education Bill; and whether it is the intention of the Government, in order to relieve the financial difficulties now pressing on secondary and primary teachers, to grant immediate increases to these deserving people?
It is not possible at present to name a date for the Second Reading, or to grant immediate increases, but the matter of poorly paid teachers is under sympathetic consideration by the Chief Secretary and the Treasury, and an early decision is expected.
Secondary School Teachers
asked the Chief Secretary for Ireland whether he has received a resolution from the Union of Assistant Mistresses in Irish Secondary Schools stating that they view with alarm the damage done to the teaching profession by the failure of the Government to keep its promise that an increased grant would be paid before the end of March last; and whether the Government intends to do anything to relieve the financial difficulties now pressing on all secondary teachers in Ireland?
The answer to the first part of the question is in the affirmative. The question of providing further funds depends on the passing of the Education Bill now before Parliament.
Prison Staff
asked the Chief Secretary for Ireland if he will take steps to expedite consideration by the Arbitration Board of grievances submitted by the Irish prison staff, in view of the fact that the matter was submitted in February last, and since that date no more has been heard of it?
A report was called for by the Lord Lieutenant from the General Prisons Board on several of the points raised by the Prison Officers Representative Council. This report was received on 12th instant, and is being at once examined with a view to deciding on subsequent action.
asked the Chief Secretary for Ireland if he will reconsider his decision against granting 3s. pensionable allowance to the prison staff at Maryborough, in view of the fact that this amount has been granted in England, Wales, and Scotland; and that at Mary-borough the price of coal is 30s. per ton above that of Belfast, and exceeds the prices at Londonderry and Dublin by 21s. and 12s. per ton, respectively?
The introduction of the new scales of salaries for Irish prison officers which took effect as from 1st April, 1919, involved the withdrawal of the special allowance previously paid to the subordinate officers of the convict prison at Maryborough. I understand that a small weekly allowance has been granted to the officers of the English and Scottish convict prisons as a compensation for the inconvenience caused by the remote localities in which these prisons are situated. No reason is seen, however, to differentiate service at Maryborough convict prison from service at Irish local prisons on these grounds.
Queenstown Quay
asked the Chief Secretary for Ireland how long the public have been excluded from the quay at Queenstown; why they are still excluded;, whether he is aware that this is the only promenade and place of recreation on the sea-front for the inhabitants of Queenstown; and whether the quay will be reconditioned as a public promenade by the Young Men's Christian Association, who have had the use of it?
My right hon. Friend has asked me to reply. I am informed that the Promenade Quay at Queenstown is private property, and since 1914 has been leased free of rent to the Young Men's Christian Association who erected a hut on it for the exclusive use of sailors and soldiers. The Association has, I understand, recently disposed of this hut and is now restoring the site and will presumably hand it back to the owner.
Is it a fact that the owner of this quay is quite willing that it should be again used by the townspeople, and why is it that there is all this delay so long after the Armistice?
The hon. and gallant Gentleman should address that question to the owner of the land.
Prisoners' Treatment (Wormwood Scrubs)
asked the Prime Minister whether he will institute an immediate impartial inquiry into conditions in Wormwood Scrubs Prison, in view of the allegations made by Irish hunger-strikers that they have been assaulted and ill-treated by the warders?
My right hon. Friend has asked me to reply to this question. No, Sir. All necessary inquiries regarding the allegations have been made by the Prison Authorities. The warders appear to have done their duty well and quietly in very trying circumstances.
Have any of these men who complain of ill-treatment been charged or tried with any offence under the law?
My hon. Friend knows that quite well.
Is the right hon. Gentleman aware of the widespread publicity given to the definite charges of ill-treatment that these men make, and is he in a position to deny that there was no sort of brutality or ill-usage of these men?
Yes, I have done so.
Land Purchase
asked whether the Government still adhere to their determination to complete land purchase in Ireland concurrently with the passing into law of the Government of Ireland Bill!
The answer is in the affirmative.
asked the Prime Minister whether, in view of their proposed legislation to complete the policy of land purchase in Ireland and for the convenience of Members of both Houses of Parliament and the public, he will reprint as a separate Paper those portions of the Report of the proceedings of the Irish Convention of 1918 (Paper Cd. 9,019) which refer to or embody the land purchase scheme recommended by that Convention, namely, his letter of the 25th February, 1918, to Sir Horace Plunket (Cd. 9,019, pp. 20–22) and Appendix IX. with its schedules and tables (Cd. 9,019, pp. 86–107)?
In view of the need for economy, I am not prepared to adopt my hon. and gallant Friend's suggestion.
Government of Ireland Bill
asked whether, on the passing of the Government of Ireland Bill into law, the Irish representatives in this House will receive a salary out of Irish or Imperial funds?
The salaries of Irish representatives in this House would be paid out of Imperial funds.
Alderman O'brien
asked the Lord Privy Seal whether he can state the Government's intentions regarding Alderman O'Brien, who was released from Wormwood Scrubs prison in order to enter a nursing home for treatment; whether Alderman O'Brien has been requested to sign a parole to the effect that, if released from custody, he will take Lo part in politics, either directly or indirectly, and will return to Wormwood Scrubs when asked to do so; whether he can explain why the suggested parole should seek to bind Alderman O'Brien to abstain from politics; and whether, in view of Alderman O'Brien's position as secretary of the Irish Labour party and Trade Union Congress, he w ill be granted unconditional release and allowed to return to his work in Ireland?
As regards the first part of the question, I would refer the right hon. Member to the answer given on Monday by my right hon. Friend the Attorney-General for Ireland to a question by the hon. and gallant Member for the Seaham Division of Durham. The answer to the last part of the question is that the Chief Secretary has personally gone into the question of the continuance of Alderman William O'Brien's internment, and has ordered his release.
Does the right hon. Gentleman think that there is any use whatever in laying down as a condition for any Irishman that he shall take no part in politics?
That does not arise. The answer to that part of the question was given by my right hon. Friend.
If Alderman O'Brien is released unconditionally now, why was he originally arrested?
Is the right hon. Gentleman aware that the organisations referred to in the question are "purely political and do not represent the organised labour of Ireland?
Incendiarism, Roscommon
asked the Chief Secretary for Ireland whether he has any information to the effect that Southpark House and Roundmoat House, County Roscommon, were burnt to the ground because the Government were making inquiries about the taking of these houses for the purpose of quartering the military?
Southpark House, Castlerea, was burnt because military occupation was suspected. Roundmoat House was not burnt.
Listowel Urban District Council
asked the Chief Secretary for Ireland whether he is aware that at a recent meeting of the Listowel Urban District Council the Chairman, Dr. O'Connor, stated that he had received a notice from Dail Eireann, which he read to the Council, to the effect that no more extracts from the Council's books were to be sent to the British Surveyor of Taxes or any information whatsoever given; that the Council made an order accordingly; that the Chairman produced a form which had been filled up to be sent to the Surveyor in Tralee, and that the Council cancelled it; and whether His Majesty's Government will permit the law of the land to be defied in this manner?
I have seen a statement in the public Press to the effect stated in the question, but the Local Government Board have received no official information from the Urban District Council on the subject. If the Council neglect or refuse to give any information required by law, proceedings will be taken.
Is there any change of policy proposed, or are matters to be allowed to drift and the intolerable situation in Ireland to continue?
Dublin Corporation
asked the Chief Secretary for Ireland whether he is aware that, at a recent meeting of the Dublin Corporation, a resolution was passed to the effect that this council of the elected representatives of the City of Dublin hereby acknowledges the authority of Dail Eireann as the duly elected Government of the Irish people, and undertakes to give effect to all decrees duly promulgated by the said Dail Eireann in so far as the same affects this council, and that copies of this resolution be forwarded to the Republican Minister for Foreign Affairs for transmission to the Governments of Europe and to the President and Chairman of the Senate and House of Representatives of the United States of America; and what steps he proposes to take in the matter?
I am aware that the Dublin Corporation have passed a resolution as stated in the question. If any attempt is made to employ public money illegally proceedings will be taken.
May I ask the Leader of the House whether he would give the House a statement showing in how many parts of Ireland de facto government by His Majesty's Government has ceased to exist?
I do not think it would be easy to give such a statement. We do intend to give the House regularly a full account of the condition of Ireland.
Can the right hon. Gentleman now say when that will be produced?
I am sorry I cannot do that.
Bakers' Strike, Londonderry
( by Private Notice ) asked the Minister of Labour whether he will state the present position with regard to the bakers' strike in Londonderry, and whether schools, hospitals and orphanages homes have been without bread for clays owing to bread supplies being held up at the railways, and if it is the intention of the Government to see that these institutions as well as the poor people do not suffer?
I regret that I am unable at short notice to give a detailed reply to this question, but I am making inquiries, and will write to my hon. Friend as soon as I am able.
Rent Restriction Bill (Business Premises)
asked the Prime Minister if he is now in a position to state the policy of the Government with regard to legislation to deal with cases of hardship arising from tenants of shops and business premises being deprived of their livelihood by these premises being sold over their heads, or by the demand of an excessive increase of rent on renewal of lease?
I regret that I am unable to add anything to the answer which I gave to my hon. and gallant Friend on the 22nd April.
Is the right hon. Gentleman aware that as far back as December last the Prime Minister, in answer to a question, said the matter was under consideration? Is there no prospect of the matter being settled after five months?
As the hon. And gallant Gentleman probably knows, the Government thought that must be dealt with by the Committee set up in regard to rents, but they decided that was outside the scope of their reference. It is now being considered by the Home Affairs Committee of the Cabinet.
Will my right hon. Friend consider it advisable to leave these matters to the ordinary law of supply and demand?
It was just because of the difficulty of finding a solution of this that we have been so long in coming to a decision. I cannot say more than that.
Transport
Railway Construction, Castlecomer
asked the Chief Secretary for Ireland whether the railways which in August, 1918, were stated to be in construction at Castlecomer are now completed and in use; what was the cost of construction of each; to what Vote has it been charged; what are the receipts and working expenses; and what tonnage of coal has been carried by each of them from the collieries they serve
I have been asked to answer this question. The whole of the works in connection with the Castlecomer Colliery Railway is not yet completed. The line, however, has been in use for coal traffic since 15th September last. From that date to the end of February, 1920, 9,857 tons of coal passed over the railway. Definite figures in regard to receipts and expenditure are not yet available. The cost of construction has been borne on the Vote of Credit and (since 1st April, 1919) on the Railway Agreements Vote. Sums amounting to £123,807 have been paid, up to the 31st March, 1920, in monthly instalments to the contractor.
On what ground was this expenditure placed on a Vote of Credit? Is it a military operation?
That was before the coming into existence of the Ministry of Transport. All such matters were carried on Votes of Credit by the Board of Trade at the time.
Whose property will the line be when it is constructed?
I should like to have notice.
Who will defray the cost eventually? Will the owners defray the whole of the cost of getting the railway to the colliery?
Notice must be given of that question.
Pedigree Stock (Railway Facilities)
asked the Minister of Transport whether, with a view of encouraging the development of pedigree stock, he will consider the desirability of granting to breeders special cheap return railway facilities to and from the various agricultural exhibitions.
When the deputation from the Royal Agricultural Society waited upon the Minister recently on the subject, a promise was given to them that the matter should be referred to the Rates Advisory Committee. That Committee has reported and acting upon their advice, a direction is being issued to-day to the railway companies to the effect that the concessions which were formerly granted in respect of the conveyance of livestock to and from agricultural shows are to be restored on and from next Monday. These concessions generally provide that livestock returning from a show unsold is conveyed at half rate and that attendants accompanying the livestock to the show, and the necessary provender for consumption on the journey, are conveyed free. The rates charged will be the increased rates which came into operation on the 15th January, 1920.
Will this concession apply also to stock conveyed by steamboat, and if not, why not?
This is simply the restoration of a concession and I cannot answer the question further.
Ex-Enemy War Ships
asked the Prime Minister if the details of the provisional allocation of the ex-Austrian warships and ex-German destroyers can now be given; and whether the Government have any information as to what use is likely to be made of ex-enemy warships provisionally allocated to our Allies.
I have been asked to answer this question. As regards the first portion of the question, the whole matter has not been finally settled and is still under discussion. As regards the latter portion of the question, all ex-enemy men-of-war will be broken up except the five light cruisers and 10 destroyers, which will be incorporated in the French and Italian Fleets respectively, and six torpedo boats to Poland and six to Brazil for police purposes.
Will the Allies permit the Poles to use these torpedo boats in their offensive operations?
( by Private Notice ) asked the First Lord of the Admiralty if it is the case that Great Britain, France, Japan, United States and Italy are the only Powers that will have ex-enemy vessels allocated to them?
No. Other Powers, e.g., Portugal, Greece, Brazil, will receive some, but the names of the vessels cannot yet be given.
Living (Cost)
asked whether the prices of coal and bread are soon to be increased; and what is the estimated consequent rise in the cost of living?
I have been asked to answer this question. I would refer my hon. and gallant Friend to the reply given yesterday to a similar question by the hon. Member for the Western Isles, of which I am sending him a copy.
Motor Cars (Government Departments)
asked the Prime Minister whether the Government is now prepared to decide that the system of placing motors at the service of members of the Government and of officials shall definitely cease and that we shall revert to the pre-war custom by which Ministers provided their own means of locomotion, and the necessities of the service were met by hiring public vehicles when occasion demanded and charging the fare among incidental expenses; and whether, in view of the present unprecedented pressure of taxation, the taxpayer will be granted the benefit of this economy
No motor cars are now at the disposal of any Minister. A very limited number is available for use of Government Departments solely on public business, and a careful check is kept on the use made of each car. Economies have already been effected, and every care will be exercised to realise further economies as found practicable. The number and the use being made of them was recently examined by the Cabinet, which is satisfied that a greater reduction could not now be made without detriment to the public service.
Can the right hon. Gentleman say whether the arrangement as to Ministers not being allowed to use motor cars refers to the War Office?
Yes, certainly. I am speaking from memory, but I believe a voucher has to be given for the use in every case of every car.
For the purpose of economy, would it not be possible to use cars of rather lower horse-power?
I think that is being done.
Could we not revert to the pre-war practice?
Is the right hon. Gentleman aware that the Admiralty have their own fleet of motor cars, and do not use the pool which has been organised by the Ministry of Transport?
It has been carefully considered as to whether an economy would arise by putting them into the pool. The number of cars is very small, and we came to the conclusion that there would be no economy in putting them into the pool.
How did they get on before the War without cars?
It is very natural to take that view, but the conditions have greatly changed since the War. It is our view that there is actual saving of time to be put against the additional cost.
Why should the one Department that deals with matters on the sea be the only one to keep its own cars on the land?
Can the right hon. Gentleman give a list of the cars used and state the expense to which the country is put by continuing them?
I hope the House will be satisfied with the answer I have given. We have looked closely into this matter, and it has been examined by the Treasury. The House might accept that.
Palestine
British Mandate
asked the Prime Minister whether, in view of the possibility that the British mandatory for Palestine and the resettlement of the Jews may involve future liabilities, both financial and military, upon the British taxpayer, no definite acceptance of the mandatory will be taken without the assent of Parliament?
The assent of Parliament is not required for the acceptance of a mandate, but the opportunities for discussing the position in Palestine will doubtless occur in connection with the Turkish Peace Treaty, out of which the proposal arises.
Must not the expenses in connection with the mandate come before Parliament, and therefore does not that, in fact, give us the right to decide?
Very likely, but there were no expenses in connection with the matter.
Coal Production
Output (Shortage)
asked the Prime Minister whether he is aware that the reduced output of coal, high price of hunker coal, and greatly diminished export of coal are in a large measure responsible for the high price of food and other commodities in this country; that, owing to the reduced export of coal from this country to our former purchasers, coal is being brought from Australia to Continental ports at a freight of about £7 10s. per ton; that coal is being carried from the United States to Continental ports at £5 to £6 per ton freight, using vessels for the carriage of coal which otherwise would be engaged in carrying cargoes of wheat or other supplies; that the export of coal from the United Kingdom to the Argentine has practically ceased and that Argentina now obtains its supplies from the United States and South Africa; that, prior to the War, our exports *of coal to the Argentine practically paid for our imports of wheat from that country; that, owing to the cessation of exports of coal to the Argentine, tramp steamers directed by the Ministry of Shipping have now to proceed to that country in ballast, with the result that homeward freights must be higher than if they carried outward cargoes of coal, and that we have to remit gold to the Argentine in payment for foodstuffs; that, owing to shortage of coal at British coaling depots, steamers have to wait for bunkers and to pay enhanced prices; that all these delays and increased prices add to the expenses of voyages; that more men are now engaged in coal mining than in the year before the War, but that the output of coal during the past 12 months was some 50,000,000 tons less than in the year before the War; that if the output of coal could be increased to the pre-War quantity an immediate reduction in the price of food and other commodities would be obtained; and can he state what measures are being adopted to obtain this increase in the output of coal?
I have been asked to reply. I am not unmindful of the points raised by my hon. Friend which are in a large measure to be attributed to the shortage of coal in this and other countries. As I stated, in reply to a similar question by the hon. Member on Monday last, so far as it is within the power of the Government to overcome any impediment to increased output, everything possible is being done; but it is obvious that output depends primarily, not on the Government, but on the enterprise and exertions of owners and men.
Is the hon. Member not aware that an abundant supply of cheap coal is essential to the national prosperity, and will the Government do something towards obtaining that?
I am aware of that.
Employment Exchange, Liverpool
asked the Prime Minister whether he is aware that the Ministry of Labour propose to erect a new Employment Exchanges in Hanover Street, Liverpool, and that the City Council has protested against the same as being useless and a waste of public money, more especially at a time when labour and materials are so urgently required for building dwelling houses; whether he is aware that Employment Exchanges generally have proved practically useless and a needless waste of public money; and whether he will, in the interests of national economy, which is so urgently needed, consider the abolition of all Employment Exchanges and their costly staffs?
I received this morning a communication from my hon. Friend the Member for the Edgehill Division conveying to me the view of the Health Committee of the City Council of Liverpool in opposition to the erection of I this building.
It is the undoubted fact that the existing accommodation is unsuitable and inadequate, and I gather that strong representations have been made to us on several occasions upon the matter by the local Employment Committee. However, I had already arranged to go personally through all these proposals for new buildings and extensions of existing buildings, set forth in the Estimates for 1920–21 before the close of the present week.
Is the right hon. Gentleman not aware that the views expressed in this question are generally held, and is he also aware that some of his colleagues on the Bench agree with them?
Was it not understood that before any of these Labour Exchanges were built the subject would come up for discussion?
Yes, that will be carried out. I have said that I will personally examine the proposals.
Peace Treaties
Hungary
asked the Prime Minister what are the principles -that have influenced the Supreme Council in refusing to allow homogeneous areas in Hungary to have a voice in their future?
I would refer the hon. and gallant Member to the answer which I gave to his question on the same subject of the 6th May.
Armenia (Mandate)
asked whether America has yet replied to the invitation of the Supreme Council to her to accept a mandatory for Armenia?
The answer is in the negative.
Spa Conference
( by Private Notice ) asked the Lord Privy Seal whether he can make any statement as to the arrangements for the meeting of the Spa Conference; and whether it has been decided to fix the date of the meeting at a time subsequent to the forthcoming German elections?
A final decision has not been taken, and I understand that the subject will be discussed by M. Millerand and my right hon. Friend the Prime Minister.
Consular Representatives (Montenegro and Albania)
asked whether Great Britain has any consular representative in Montenegro or Albania; and, if not, whether it is possible to obtain any reliable information with regard to events in those countries?
The answer to the first part of the question is in the negative, but I would refer the hon. and gallant Member to the reply given on the 10th instant to a question asked by the hon. and gallant Member for Bromley.
Why is it that in view of the fact that we have consular representatives in small countries like Latvia and Lithuania, there are no consular representatives in Albania or Montenegro?
In view of the fact that we kept representatives in Albania when there was nothing of importance being done, why should we withdraw them in the present very critical conditions?
There was no sinister purpose in doing it. They were withdrawn automatically.
Were they not withdrawn by the Foreign Office?
I should like notice of that question.
What is there for a consul to do in this liliputian principality
Oil (Great Britain)
asked the Prime Minister whether His Majesty's Government has reached a decision regarding the ownership of and royalties on oil deposits in Great Britain; whether he proposes to permit fresh vested interests to be created in favour of landowners below whose land oil may be discovered; and when he intends to introduce a Bill dealing with this subject?
The answer to the first part of the question is in the affirmative and to the second in the negative. With regard to the third part, a Bill has been drafted and is at the moment receiving the consideration of His Majesty's Government.
Russia
British Mission (Caspian and Caucasus)
asked the Prime Minister whether the British naval and military mission in the Caspian and Caucasus area has fallen into the hands of the Soviet forces; and whether he can give the House any information as to the present position of affairs in this area?
As regards the first part of the question, I would refer my Noble Friend to the answers given on this subject on Tuesday last. As regards the general situation in the Caucasus, the Azerbaijan Soviet Government is in touch with the Russian Soviet and the Turkish Nationalists. It is not clear to what extent it represents the population of the country.
Can the right hon. Gentleman say whether we are in diplomatic relations with this Republic, and, if so, whether it is in our power to do anything on behalf of the naval or military officers?
I understand my Noble Friend put a question to the Admiralty as to the facts. Perhaps he will put another question down.
Is it proposed to commence hostilities against Azerbijan, and, if so, will this House be consulted?
British Labour Mission
asked the Under-Secretary of State for Foreign Affairs whether he will say if the missions to Russia and Hungary, composed of representatives of organised labour, to inquire into the working of communist and collectivist forms of government receive no financial or other assistance from the Government, and are under taken at the expense and on the responsibility of the British trades union movement alone?
The answer to the first part of the question is in the negative and to the second in the affirmative.
State Administration (Malpractices)
asked the Prime Minister if cases of malpractice, or of undesirable circumstances in the administration of the State, should be brought to the notice of the Government by hon. Members when there are strong grounds for believing in their existence; and will he state what steps hon. Members can take to get their representations in such cases proved to be true or false?
The answer to the first part of the question is in the affirmative, and to the last that the first step would naturally be to obtain from the Government Department concerned a statement as to the facts.
In dealing with the heads of a Government Department what can be done to make sure that a decision given on the facts is really impartial? How can we make sure that an adjudication is given on the basis that the whole facts are dispassionately examined?
What I suggested—and I think it a natural course to advise—was that before questions are put in this House, hon. Members should ask the Department what the facts are.
Defence of the Realm Act (Arrests)
asked whether any deaths have occurred among persons imprisoned by the Government without charge or trial either before or after release; and whether the Government have decided to have the circumstances of such arrests examined by any independent judicial body?
No case has occurred of a death in consequence of imprisonment by the Government without charge or trial. The answer to the last part of the question is in the affirmative.
Is the hon. Gentleman aware that a death occurred recently in Ireland which was almost directly caused by imprisonment, and was so found by the verdict of a coroner's jury?
The man in question died after an operation for appendicitis. In any case he was a convicted prisoner.
Was not he a perfectly healthy man when arrested?
Does the Government intend to have an investigation by independent judges, and, if so, when?
As soon as it can be arranged we shall give the names of the judges.
League of Nations
Financial and Economic Conference
asked on what date the Financial and Economic Conference summoned by the League of Nations is to meet?
I would refer my hon. and gallant Friend to the reply which I gave on this subject yesterday. The exact date has not yet been communicated to His Majesty's Government.
Is it the intention to use the influence of the Government to have this Financial Conference postponed until the Spa Conference has met?
We will take no action of the kind.
Munitions
Disposal Board (Officials)
asked the Prime Minister whether his attention has been called to the fact that officials of the Disposal Board have recently been placed in such a position that their private interests may conflict with their public duty; and, if so, what steps he proposes to take to put an end to this violation of the traditions of the public service?
I can add nothing to the answer which I gave to a similar question on Monday.
I will call attention to this question on the Motion for Adjournment for the Whitsuntide Recess.
Poland
General Pilsltdski
asked whether a message of congratulation on his recent victorious attack on the Russian Soviet forces was despatched to the Polish General Pilsudski; and whether this action was taken on the advice of any Minister.
I would refer the hon. Member to the answer which I gave yesterday to questions on this subject.
If there is any truth in that, is it not calculated to prejudice the opening up of trade with Russia for the food that is so essential to this country?
S.S. "Jolly George" (Munitions)
( by Private Satire ) asked the Minister of Labour whether a ship called the "Jolly George" has been held up in London docks owing to the refusal of the dock workers to load her with munitions intended to be used against Russia?
I am informed that this ship has been held up for some days owing to the refusal of the dock workers to load munitions of war. The consignment in question appears to belong to the Polish Government, and I have no knowledge of its ultimate destination. I understand that the owners have now given instructions for this part of the ship's cargo to be unloaded.
May I ask the Leader of the House if he is still in a position to say that we are not supplying munitions to be used against Russia?
Members of Parliament (Railway Passes)
asked the Prime Minister whether, as an alternative to increasing the salaries of Members, he will favourably consider the issue of railway passes and a reasonable allowance for expenses in the case of Members representing provincial constituencies?
The Government are not prepared to take the action suggested in the question.
Is the right hon. Gentleman aware that, after provincial Members have paid their railway fares, their expenses in town, their correspondence expenses, the bulk of their salary as Members is absorbed, and does he not think that such a small grant as this is worth at least as favourable consideration as the supply of motor cars to Government Departments?
How could we preach economy to our constituents if we adopt such a course?
( later ): Will you, Mr. Deputy-Speaker, allow me to put a question? [HON. MEMBER: "Order!"] I never hardly trouble you. Those who trouble you most take the greatest liberty.
Will the hon. Member kindly resume his seat?
I have done that, but under protest.
If the hon. Member will be good enough to put a question on the Paper, it will be answered.
You have half a dozen supplementary questions. [HON. MEMBERS: "Order!"] We will not have order. We will have misrule, if the others have it.
School Teachers' Pensions
asked whether the proposed increased provision with respect to pre-war pensioners is to apply in the case of school teachers?
The answer is in the affirmative.
Ex-Kaiser (Extradition)
asked whether negotiations are still in progress with Holland with respect to the extradition of the ex-Kaiser; if not, what was the result of the last exchange of views; and, if so, whether any definite progress has been made towards punishing the chief author of the War?
I can add nothing to the statement which I made in the House on this subject on 19th April.
Does the right hon. Gentleman realise that he really did not tell us anything at all in that answer, and cannot he say definitely whether we may not give up all hope that we shall get no more questions of that sort asked?
I told all I could on 19th April, and I cannot tell any more to-day.
Egypt (Lord Milner's Report)
asked whether it is possible to state the approximate date on which the Report of Lord Milner's Commission concerning the government of Egypt is likely to be published.
The answer is in the negative.
Finance Bill
Income Tax
asked the Chancellor of the Exchequer what was the sum coming under review for the purposes of Income Tax, Schedule D, for each of the years 1917–18, 1918–19, and 1919–20; whether there would be a great increase in the receipts from the tax under the said Schedule if instead of an average of three years the year ending on that day of the year immediately preceding the year of assessment were substituted; and whether he has been advised that this amendment of the law would create no difficulty in the collection of the tax?
The gross income reviewed under Schedule D was as follows:—
For the year 1919–20 the figures are not yet available.
This income is composed partly of the income of the year in question, partly of income of the preceding year and partly of income based on an average of years.
The substitution of the preceding year basis for the average in the current year 1920–21 would no doubt have resulted in an increase in the gross income reviewed, but I would refer my hon. and learned Friend to my statement in this connection in the course of the Budget Debate on the 19th April [OFFICIAL REPORT (daily edition) Col. 128].
asked the Chancellor of the Exchequer to state whether a man who served in the War and has suffered very serious injuries and is unmarried, having a private income of, say, £300 a year apart from his pension, is required to pay Income Tax on that amount on the ordinary basis, although marriage in consequence of his injuries is impossible for him, and the nature of his disability prevents him from working and involves him in exceptional expenses?
The answer to the question is in the affirmative. In the case suggested the personal allowance of £135 would be made and Income Tax would be chargeable, under the Budget proposals, on £165 at 3s. in the X. The disability pension would be exempt from tax under the provisions of Section 16 of the Finance Act, 1919.
May I ask whether this puts such an unfortunate person in the same position as an ordinary single man? Can he not give some help in these terrible cases?
That is given by the exemption of disability pension from tax.
Excess Profits Duty
asked the Chancellor of the Exchequer whether, having regard to the statements he made to the joint deputation of the Association of British Chambers of Commerce and the Federation of British Industries on the 5th May and his explanation published on the 8th May, he has taken into consideration, in arriving at the two respective flat-rate taxes of 7s. 6d. and 5s. 6d., the amount which would be derived in Income Tax from the adding back to the net profits of the amount deducted for Excess Profits Duty which would then be liable for Income Tax; will he say whether, in the case of both flat-rate taxes, he is budgeting for a sum of £300,000,000; will he state if the figure of profits on which he is basing his calculations are those for 1918–19 or 1919–20; and, if the latter, will he give the figure of the gross income on which these taxes are calculated?
My hon. Friend will appreciate that the yield of Income Tax cannot be materially affected by the substitution for existing imposts of an alternative impost which would equally be a working expense and would produce an equivalent yield. The combined yield of the Excess Profits Duty at 60 per cent: and the Corporation Profits Tax both imposed for a full year is estimated at £335,000,000 and the rates of 7s. 6d. and 5s. 6d. in the £ represent the rates of profits taxes of the respective characters which I have previously indicated necessary to produce an approximately equivalent yield of duty. These rates have been arrived at on a consideration of the estimated profits of businesses accruing in accounting periods ending in the financial year 1919–20.
Finland
General Von Mannerheim
asked the Under-Secretary of State for Foreign Affairs whether the Finnish General von Mannerheim is on his way to this country after visiting Berlin and Paris; whether he is acting on behalf of the Finnish Government; and what is the purpose of his visit to this country?
As regards the first part of the question, the Finnish Press recently announced that General Mannerheim intended to visit this country. His Majesty's Government have no information further than this. The answer to the second part is in the negative. I am unable to answer the third part of the question.
Is it proposed to admit this notorious pro-German?
Why should not a distinguished individual visit this country?
Because he was pro-German before the War.
Lord Acton
asked the Under-Secretary of State for Foreign Affairs whether he will state the reasons which led to the removal of Lord Acton from the post of British Minister at Helsingfors; whether it was at his own request; whether any representations had been made by the Finnish Government; and, if so, what was the nature of those representations?
Lord Acton's departure from Helsingfors was due to reasons of health. No representations were made in this connection by the Finnish Government, who have expressed regret at Lord Acton's departure from Finland.
Liberia
asked the Under-Secretary of State for Foreign Affairs whether, in view of the fact that the republic of Liberia is practically without coin and has hitherto depended solely upon British silver for its currency, His Majesty's Government will grant permits for the shipment of limited supplies of the United Kingdom silver coin to this republic which joined the Allies during the War, expelled the Germans, suffered in consequence bombardment at their hands, and is now struggling to regain a measure of its former prosperity?
I regret that owing to the requirements of this country it is necessary to restrict exports of British silver coin even to the British West African Colonies at the present time. I could not authorise differential treatment for Liberia.
Is the hon. Gentleman prepared to do what he can, if any opportunity offers, for this small republic, which is really in great distress and has no cash whatsoever for carrying on business?
Education
Necessitous School Areas (Grant)
asked the President of the Board of Education whether he is aware that the alteration in the rate of relief granted to necessitous school areas will mean an added burden of over £7,000 to the ratepayers of Middlesbrough in the current year; and, in order to reduce the hardship thus imposed on this and similar industrial centres, will he favourably consider making a substantial increase in the scale of building grants to those areas where the demand for school places is much above the average for the country as a whole?
I have no information which would enable me to verify the statement made in the first part of the question. As regards the second part of the question, building grants are not made in aid of the provision of ordinary school accommodation, though expenditure on such provision ranks for grant in the formula on which substantive Grant-in-Aid of elementary education is calculated and which differentiates between rich and poor areas.
Children, Employment
asked the Home Secretary whether he has received any request from the Hastings Borough Council to sanction a bye-law recently made to permit the employment of children before school hours, as provided in the Education Act, 1918; whether he is aware that the Hastings Education Committee, after holding conferences with a number of organisations representing various sections of public opinion in Hastings, recommended that no such bye-law should be made; whether he has received any representations on this matter; and whether he will give full consideration to the views of the education committee before sanctioning any such bye-law?
The answer to the first three parts of the question is in the negative. If such a bye-law is submitted, full consideration will be given to any representations that may be received.
Deported Germans (English Wives)
asked the Secretary of State for the Home Department whether he can state the number of applications he has received from Germans deported from the country who allege they have English wives or children, and who desire to return to this country to engage in business or industrial employment in competition with British subjects; whether he will state on what principles these cases are dealt with and what instructions are issued to the police on the subject; and in how many cases these applications have been granted and on what conditions?
The number of applications under Section 10 (4) of the Aliens Restriction (Amendment) Act, 1919, is 940, but I am not prepared to say that they answer to the description given in the first paragraph of the question. The applications are dealt with not by me but by the Advisory Committee appointed under the Act, and I have no control over the principles on which they act. Instructions to the police are that they shall afford all information in their possession which the Committee require for the purpose of their work. On the 10th instant the Committee had recommended that 241 persons should be permitted to land without delay, 23 if certain inquiries proved satisfactory, 13 not earlier than six months hence, and 18 in 12 months. They had refused 69 applications.
Would my right hon. Friend inquire of this Committee, for the information of this House, upon what principles they acted in accepting or refusing these applications?
I will inquire.
Soviet Propaganda (United Kingdom)
asked the Home Secretary whether he is in a position to give the House any information as to the growth and activities of Soviets in the British Isles, with their total membership; the sources whence they derive their finances, and how many aliens are acting as agents and organisers; if this propaganda is specially directed to fomenting strikes and industrial trouble as well as fomenting general unrest and distrust between all sections of the community and the weakening of the credit and good faith of the authorities; and can he say whether the British citizens who are taking an active part in the establishment of such Soviets were conspiring during the War as conscientious objectors and in favour of a policy of surrender to the Germans?
There are no Soviets in the British Isles, and the propaganda in favour of the establishment of Soviets has, I believe, declined in strength since the real nature of the Soviet Government in Russia has become more generally known. I cannot give any estimate of the numbers engaged in this propaganda, but they certainly include many aliens or persons of alien origin, and a certain amount of money reaches them from foreign sources. The officials of the organisations engaged in the propaganda were during the War conscientious objectors, defeatists or internationalists.
Can the right hon. Gentleman indicate the nature of these foreign resources, and whence they come?
I do not think it would be advisable to do that.
Can the right hon. Gentleman say whether any of these men or women have access to the Lobby of the House of Commons?
Officers' Estates (Colonies)
asked the Under-Secretary of State for the Colonies why the estate of an officer killed in action at Koronji, Portuguese East Africa, should be charged High Court fees and administrators' fees and other incidental expenses, thereby considerably reducing the money due to his relatives, when no such fees were charged against the estate of an officer killed at Naketi, Portuguese East Africa, and when both officers were serving in the King's African Rifles?
The estates of deceased officers of the King's African Rifles are administered in accordance with the law of the Protectorate to which they are allocated on appointment to the force. I am not aware that there has been any departure from this rule, and if my hon. and gallant Friend will let me have further particulars of the cases to which he refers, I shall be glad to have inquiry made in the matter.
Is not the British Government responsible for seeing that officers killed in their service are not charged for State expenses? Does not the same rule apply to service in the Colonies as to service, say, in France during the War?
I think the matter is one for the local law of the particular Colony in which the officers are serving.
Does the British Government surrender all responsibility for officers who served in the Colonies at the Government's request during the War?
Southern Rhodesia (Land Holding)
asked the Under-Secretary of State for the Colonies whether his attention has been drawn to the statements in the press that subjects of foreign powers are leasing or purchasing land in Southern Rhodesia; and whether, upon the completion of such transactions, those foreign subjects are then permitted to exact a per-capita levy from the indigenous natives or, failing the payment of such levy, can then demand the eviction of the native occupants?
Subjects of foreign powers are entitled to purchase or lease land in Southern Rhodesia, and if they do so, acquire the same rights of ownership or tenancy as British subjects in the same position, whether white or native.
Is it the fact that in these cases they have the power to evict natives from their homes in large numbers?
I do not know about large numbers. As a matter of fact I do not think eviction is practised. The owner of land in Rhodesia, whether a British subject, white or native, or a foreign subject, is entitled to charge rent to people who live on his land.
Ceylon (Strikes)
asked the Under-Secretary of State for the Colonies whether he is aware that prison labour was employed on the Ceylon Government railway during the recent strike of the workmen for higher wages; whether there was any precedent in Ceylon for such action being taken; and whether it had the approval of the Secretary of State?
I have received no official information in the matter, but I will ask the officer administering the Government for a Report.
Has the Government received any complaint from Ceylon or from anyone with knowledge of Ceylon?
Regent's Park
asked the First Commissioner of Works when he proposes to restore to the public access to those portions of Regent's Park which are situate between the Outer Circle and the Regent's Canal?
The ground in question will be restored to the public as soon as the fencing which is now being erected by the Regent's Canal and Dock Company, is completed, probably in a month's time.
Food Supplies
National Restaurant (New Bridge Street, London)
asked the Minister of Food whether the National Restaurant in New Bridge Street was disposed of without any consultation, either with the Consumers' Council or with the advisory committee of the National Kitchens Department, on which a representative of the Consumers' Council sat; and whether he was aware of this omission?
The National Restaurant in New Bridge Street was disposed of to a company representing discharged soldiers and sailors in pursuance of the decision of the Government that the Ministry of Food should cease to be directly responsible for the management of National Kitchens and Restaurants. I was fully cognisant of the views of the Consumers' Council, who were in favour of continued State management of these institutions; but in the circumstances I do not think that any useful purpose would have been served by further consultation.
Was it due to superior economy that it has been dropped?
It was the decision of the Government, on the ground of policy.
Having regard to the admittedly high rates of charges in restaurants, surely this could have been continued as a set-off. I think most hon. Members will agree.
Jam
asked the Food Controller whether the decision to release jam from price control was made without any consultation with the Consumers' Council and without the proposal being submitted to the members of the Orders Committee, where representatives of the Consumers' Council would have had the opportunity of expressing their views; whether the selling price of all stocks of jam held by the manufacturers at the date of decontrol made with-sugar at the lower rates of 57s. 9d. and 66s. are to be fixed on the present price of sugar of 150s. per cwt.; and whether, in view of the fact that jam is one of the staple foods of children, and of the necessity of keeping this commodity at the lowest possible price, it is the intention of the Ministry to control fruit prices during the coming season?
In view of the situation created by the recent advances in the price of sugar, and especially of the representations made by the Ministry of Labour as to the prospect of increased unemployment caused by the closing of jam factories, I decided to issue as a matter of urgency a General Licence withdrawing the restrictions as to price imposed by the Jam (Maximum Prices) Order. The Consumers' Council was subsequently informed of the reasons for this action. In view of the large stocks of the cheaper varieties of jam now in existence, there is no reason why the consumer should pay prices higher than those based on the actual cost of manufacture. It is not the present intention of the Government to control fruit prices during the coming season, and I hope the necessity will not arise, but I shall not hesitate, in case of need, to use the powers given to me for the protection of the consumer in regard to both fruit and jam.
British Army
Troops in Egypt (Hospital Transport)
asked the Parliamentary Secretary to the Shipping Controller whether he is aware that there are a number of officers and men medically boarded for transfer to the United Kingdom after several years' service abroad being retained in Egypt because no hospital ship is available to transport them; and whether civilians have recently been allowed to travel from India or Egypt to the United Kingdom on hospital ships which might otherwise have been available to carry more sick officers and men?
I have been asked to reply. I cannot add anything at present to the answers which I gave yesterday to the hon. Member on this subject.
Will the right hon. Gentleman make inquiries as to whether accommodation is available on ordinary liners so that these men can be sent on them?
Yes, that will be done, and if it is necessary to send cases of necessity by ordinary liner it will be done.
Will the right hon. Gentleman also communicate with the First Lord of the Admiralty as to whether accommodation could be obtained on ships returning from the East?
A note will be taken of that.
Scotland
Parish Hall, Nigg, Ross-Shire
asked the Secretary for Scotland whether he is aware that ex-service men and other residents in the parish of Nigg, Ross-shire, are desirous of purchasing a hut in that parish recently taken over by the Board of Agriculture from the military authorities to be used for social purposes, as there is no other hall in the parish; whether he is further aware that the proprietrix of the estate refuses to grant the site upon which the hall stands; whether the Board of Agriculture have considered the suitability of the farm of Pitcalne, on which the hall is built, for a scheme of small holdings; and whether, in connection with such a scheme, or in any other way, he can take steps to secure the hut and the site for the social requirements of the district?
The answer to the first part of the question is in the affirmative. I have no information as regards the second part. The Board of Agriculture for Scotland considered the question of utilising the farm of Pitcalne for small holdings last year, and as they regarded it as unsuitable for the purpose, they decided not to take action in regard to it. The Board purchased the hut along with other material for the equipment of small holdings, and they will require to dismantle and remove it from the site. They are not in a position to secure the site for the social requirements of the district.
Dardanelles
( by Private Notice ) asked the Secretary of State for War whether there is any truth in the report that Nationalist forces, armed with heavy artillery, are moving upon the Dardanelles; if so, whether the Allies are taking adequate steps to ensure the safety of the Allied naval and military forces in the Black Sea and in Constantinople, and will take such measures as are necessary to ensure the passage to the Dardanelles being kept open; and, further, whether there is any truth in the report that the Soviet Government has been established at Eriban?
With regard to the first part of the hon. and gallant Member's question, a party of Nationalists reached Lapsaki on 3rd May, and left for Bigha after collecting a number of rifles. The incident is now considered closed. The answer to the second part of the question is in the affirmative. The last part of the question should be addressed to the Foreign Office.
National Shipyard, Chepstow (Sale)
( by Private Notice ) asked the Parliamentary Secretary to the Ministry of Shipping whether, during the negotiations for the sale of the National Yards at Chepstow, the Shipping Controller informed any member of the syndicate which has purchased the yards that the Excess Profits Duty would be either reduced or abolished; and whether the Government has received a request from the syndicate concerned requesting the rescission of the sale on the grounds that such an undertaking was given and that it has not been carried into effect?
No kind of undertaking, direct or indirect, was given by the Shipping Controller during the negotiations for the sale of the National Yard at Chepstow that the Excess Profits Duty would be either reduced or abolished. A request for the rescission of the contract has been received.
Business of the House
( by Private Notice ) asked the Leader of the House what business will be taken next week, and whether, on the occasion when the discussion on Poland takes place, it will be preceded by a statement on behalf of the Government?
The business for next week will be:
Monday, Supply (Navy Estimates).
Tuesday and Wednesday, Government of Ireland Bill, Committee.
Thursday, Motion for the Adjournment.
As regards the question put by my right hon. Friend, I cannot give an answer at present.
Can the right hon. Gentleman yet state when it is likely that the Bill dealing with the position of the blind will be taken?
It is down for today, and it will be taken as soon as it can be.
What business will be taken on the first day after the Whitsuntide recess?
I think it will be better to wait till next week before answering that question.
Will Vote 8 (Shipbuilding—Repairs, etc.) be taken on Monday?
No.
May I ask the Leader of the House a question regarding the Notices of Motion standing in his name on the Paper to-day, and particularly with regard to the Profiteering (Amendment) Bill, namely, whether he is aware that the Committee on that Bill finished its deliberations only yesterday and that the OFFICIAL REPORT of yesterday's proceedings and the Bill as amended in Committee were only obtainable when Members came to the House this morning? Under those circumstances, and in view of the great public interest in that measure, can the right hon. Gentleman suggest any other way of dealing with it than taking it as the first Order to-day?
I greatly regret that it should be necessary to take the Bill in the circumstances described by my right hon. Friend, but the principal Act comes to an end on Wednesday next, and if this Bill were delayed even till Monday, it is obvious that it could not with certainty be discussed in another place and brought back here.
On a point of Order, Sir. May I ask whether it would be in order to debate the question, on the Notice of Motion standing in the name of the Lord Privy Seal to suspend the Eleven o'Clock Rule in respect of certain Bills, when you put that question?
That Resolution is not debatable.
Would you favourably consider, Sir, not for the purpose of delay but for the purpose of getting all the facts out with regard to this question, when the Profiteering (Amendment) Bill comes on, a Motion to adjourn the Debate.
I do not quite understand what is the suggestion of the right hon. Gentleman.
Will you favourably consider a Motion to adjourn the Debate on the Profiteering Bill when that Bill comes before the House? As far as I am concerned—and of course I cannot bind anybody else, nor would I attempt to do so—I should not in that case put the House to the trouble of a Division.
I do not understand the purpose of the right hon. Gentleman. The question has been asked of the Leader of the House, "What are the reasons for taking this Bill in such a hurry," and the reason has been given to the House. Are there any further points?
Yes, but I cannot put them now.
If the right hon. Gentleman submits a Motion for adjourning the Debate when we reach the first Amendment on the Bill, for the purpose of satisfying himself on that point, I shall be glad to consider it.
May I ask a question relating to public business for the convenience of hon. Members? I have a Bill called the Women's Franchise Bill, which stands on the Paper for the first Order to-morrow, and may I ask if I shall be debarred from moving the Second Reading of that Bill by reason of the Bill which is now before Standing Committee D?
I am obliged to the hon. Member for having given me notice of the question, especially in view of the uncertainty as to whether Mr. Speaker would or would not be in the Chair to-morrow. I am happy to say that he anticipates being well enough to return for to-morrow. I thought it right, therefore, to consult him on this matter, and he informs me that he had already considered the question and had decided that the Bill now before Standing Committee D does block the hon. Member in moving his Bill to-morrow, as being substantially the same question.
In giving your decision, Sir, may I ask if you have taken into account the fact that the Bill before Standing Committee D was passed by a large majority in this House, and is being persistently obstructed in Committee upstairs by a small number of hon. Members?
I am not likely to countenance such an allegation. Mr. Speaker, no doubt, considered all the matters that are relevant.
May I ask whether, if the right hon. Gentleman in charge of the other Bill before the Standing Committee were to drop it, there would be any objection then to the Second Reading of the Bill to-morrow?
As I understand, it is now in charge of a Committee of the House, and therefore it is not within the power of an individual Member to withdraw it.
Ordered,
"That other Government Business have precedence this day of the Business of Supply."—[ Mr. Bonar Law. ]
Motion made, and Question put,
"That the Proceedings on the Profiteering (Amendment) Bill, the National Health Insurance Bill, and the Ejection (Suspensory Provisions) (Scotland) Bill be exempted at this day's Sitting from the provisions of the Standing Order (Sittings of the House)."—[ Mr. Bomar Law. ]
The House divided: Ayes, 246; Noes, 37.
Division No. 108.] AYES. [3.58 p.m. Adair, Rear-Admiral Thomas B. S. Edwards, John H. (Glam., Neath) Loseby, Captain C. E. Addison, Rt. Hon. Dr. C. Elliot, Capt. Walter E. (Lanark) Lyle, C. E. Leonard Agg-Gardner, Sir James Tynte Eyres-Monsell, Commander B. M. Lynn, R. J. Ainsworth, Captain Charles Falle, Major Sir Bertram G. Macdonald, Rt. Hon. John Murray Allen, Lieut.-Colonel William James Farquharson, Major A. C. M' Guffin, Samuel Amery, Lieut.-Col. Leopold C. M. S. Fildes, Henry McLaren, Robert (Lanark, Northern) Archdale, Edward Mervyn Fisher, Rt. Hon. Herbert A. L. M'Lean, Lieut.-Col. Charles W. W. Archer-Shee, Lieut.-Colonel Martin Ford, Patrick Johnston Macleod, J. Mackintosh Ashley, Colonel Wilfrid W. Forestier-Walker, L. M'Micking, Major Gilbert Baird, John Lawrence Forrest, Walter Macnamara, Rt. Hon. Dr. T. J. Baldwin, Stanley Foxcroft, Captain Charles Talbot Macquisten, F. A. Balfour, George (Hampstead) Galbraith, Samuel Magnus, Sir Philip Banbury, Rt. Hon. Sir Frederick G. Gilbert, James Daniel Mallalieu, F. W. Barlow, Sir Montague Gilmour, Lieut.-Colonel John Malone, Major P. B. (Tottenham, S.) Barnes, Rt. Hon. G. (Glas., Gorbals) Glyn, Major Ralph Manville, Edward Barnett, Major R. W. Goff, Sir R. Park Marriott, John Arthur Ransome Barnston, Major Harry Grant, James A. Matthews, David Beckett, Hon. Gervase Green, Joseph F. (Leicester, W.) Middlebrook, Sir William Bell, Lieut.-Col. W. C. H. (Devizes) Greenwood, William (Stockport) Mitchell, William Lane Benn, Corn. Ian H. (Greenwich) Greer, Harry Moles, Thomas Betterton, Henry B. Greig, Colonel James William Mond, Rt. Hon. Sir Alfred M. Bigland, Alfred Gretton, Colonel John Moore-Brabazon, Lieut.-Col. J. T. C. Bird, Sir A. (Wolverhampton, West) Guinness, Lieut.-Col. Hon. W. E. Morrison-Bell, Major A. C. Blair, Major Reginald Gwynne, Rupert S. Mount, William Arthur Blake, Sir Francis Douglas Hacking, Captain Douglas H. Munro, Rt. Hon. Robert Borwick, Major G. O. Hall, Lieut.-Col. Sir F. (Dulwich) Murchison, C. K. Boscawen, Rt. Hon. Sir A. Griffith- Hambro, Captain Angus Valdemar Murray, Lt.-Col. Hon. A. (Aberdeen) Bottomley, Horatio W. Hamilton, Major C. G. C. Murray, Dr. D. (Inverness & Ross) Bowyer. Captain G. E. W. Hanna, George Boyle Murray, Major William (Dumfries) Boyd-Carpenter, Major A. Harmsworth, C. B. (Bedford, Luton) Nall, Major Joseph Brassey, Major H. L. C. Harris, Sir Henry Percy Neal, Arthur Breese, Major Charles E. Henry, Denis S. (Londonderry, S.) Newman, Colonel J. R. P. (Finchley) Bridgeman, William Clive Herbert, Hon. A. (Somerset, Yeovil) Nicholl, Commander Sir Edward Briggs, Harold Hewart, Rt. Hon. Sir Gordon Nicholson, William G. (Petersfield) Brittain, Sir Harry Hilder, Lieut.-Colonel Frank Nield, Sir Herbert Brown, T. W. (Down, North) Hinds, John Ormsby-Gore, Captain Hon. W. Bruton, Sir James Hoare, Lieut.-Colonel Sir S. J. G. Palmer, Charles Frederick (Wrekin) Buchanan, Lieut.-Colonel A. L. H. Hohler, Gerald Fitzroy Palmer, Major Godfrey Mark Buckley, Lieut.-Colonel A. Holbrook, Sir Arthur Richard Palmer, Lieut.-Colonel G. L. Burn, Col. C. R. (Devon, Torquay) Holmes, J. Stanley Parker, James Burn, T. H. (Belfast, St. Anne's) Hope. H. (Stirling & Cl'ckm'nn'n, W.) Pearce, Sir William Butcher, Sir John George Hope, James F. (Sheffield, Central) Pease, Rt. Hon. Herbert Pike Campbell, J. D. G. Hope, Lt.-Col. Sir J. A. (Midlothian) Perring, William George Carson, Rt. Hon. Sir Edward H. Hope, J. D. (Berwick & Haddington) Philipps, Sir Owen C. (Chester, City) Casey, T. W. Hopkins, John W. W. Pratt, John William Cautley, Henry S. Hopkinson, A. (Lancaster, Mossley) Preston, W. R. Chadwick, R. Burton Horne, Sir R. S. (Glasgow, Hillhead) Pretyman, Rt. Hon. Ernest G. Chamberlain, Rt. Hn. J. A.(Birm.,W.) Hotchkin, Captain Stafford Vere Purchase, H. G. Clay, Lieut.-Colonel H H. Spender Houston, Robert P. Raeburn, Sir William H. Cohen, Major J. Brunel Howard, Major S. G. Raffan, Peter Wilson Colfox, Major Wm. Phillips Hume-Williams, Sir W. Ellis Ratcliffe, Henry Butler Colvin, Lieut.-Colonel Richard Beale Hurd, Percy A. Rawlinson, John Frederick Peer Conway, Sir W. Martin Hurst, Lieut.-Colonel Gerald B. Rees, Sir J. D. (Nottingham, East, Coote, William (Tyrone, South) Inskip, Thomas Walker H. Rendall, Athelstan Cope, Major Wm. lames, Lieut.-Colonel Hon. Cuthbert Roberts, Sir S. (Sheffield, Ecclesall) Cory, Sir C. J. (Cornwall, St. Ives) Jodrell, Neville Paul Rodger, A. K. Cowan, D. M. (Scottish Universities) Johnstone, Joseph Roundell, Colonel R. F. Craig, Colonel Sir J. (Down, Mid) Kidd, James Royden, Sir Thomas Craik, Rt. Hon. Sir Henry Kiley, James D. Samuel, A. M. (Surrey, Farnham) Croft, Lieut.-Colonel Henry Page King, Commander Henry Douglas Sanders, Colonel Sir Robert A. Curzon, Commander Viscount Kinloch-Cooke, Sir Clement Scott, A. M. (Glasgow, Bridgeton) Davies, Thomas (Cirencester) Lane-Fox, G. R. Seely, Major-General Rt. Hon. John Davison, Sir W. H. (Kensington, S.) Larmor. Sir Joseph Shaw, Hon. Alex. (Kilmarnock) Dawes, Commander Law, Rt. Hon. A. B. (Glasgow, C.) Shortt, Rt. Hon. E. (N'castle-on-T.) Dixon, Captain Herbert Lewis, Rt. Hon. J. H. (Univ., Wales) Simm, M. T. Donald, Thompson Lindsay, William Arthur Smith, Sir Allan M. (Croydon, South) Doyle, N. Grattan Lloyd-Greame, Major Sir P. Smithers, Sir Alfred W. Duncannon, Viscount Locker-Lampson, G. (Wood Green) Sprot, Colonel Sir Alexander Edge, Captain William Locker-Lampson, Com. O. (H'tingd'n) Stanley, Major H. G. (Preston) Edwards, Major J. (Aberavon) Lorden, John William Stanton, Charles B. Starkey, Captain John R. Tickler, Thomas George Wilson, Daniel M. (Down, West) Steel, Major S. Strang Townley, Maximilian G. Wilson, Colonel Leslie 0. (Reading) Stewart, Gershom Turton, E. R. Wilson, Lieut.-Col. M. J. (Richmond) Sturrock, J. Leng Waddington, R. Winterton, Major Earl Sugden, W. H. Walton, J. (York, W. R., Don Valley) Wood, Major S. Hill- (High Peak) Surtees, Brigadier-General H. C. Waring, Major Walter Woods, Sir Robert Sykes, Colonel Sir A. J. (Knutsford) Warren, Lieut.-Col. Sir Alfred H. Yate, Colonel Charles Edward' Talbot, Rt. Hon. Lord E. (Chlch'st'r) Wason, John Cathcart Yeo, Sir Alfred William Talbot, G. A. (Hemel Hempstead) Wheler, Lieut.-Colonel C. H. Young, Lieut.-Com. E. H. (Norwich) Taylor, J. White, Lieut.-Col. G. D. (Southport) Thomas, Sir Robert J. (Wrexham) Williams, Aneurin (Durham, Consett) TELLERS FOR THE AY ES.— Thomson, F. C. (Aberdeen, South) Williams, Lt.-Com. C. (Tavistock) Colonel Gibbs and Mr. Dudley Thomson, Sir W. Mitchell (Maryhill) Williamson, Rt. Hon. Sir Archibald Ward. Thorpe, Captain John Henry Wilson, Capt. A. S. (Holderness)
NOES. Brace, Rt. Hon. William Guest, J. (York, W. R., Hemsworth) Robertson, John Briant, Frank Hallas, Eldred Rose, Frank H. Bromfield, William Hayward, Major Evan Royce, William Stapleton Brown, James (Ayr and Bute) Hirst, G. H. Sexton, James Carter, W. (Nottingham, Mansfield) Kelly, Edward J. (Donegal, East) Spoor, B. C. Clynes, Rt. Hon. J. R. Kenworthy, Lieut.-Commander J. M. Swan, J. E. Crooks, Rt. Hon. William Lawson, John J. Thomson, T. (Middlesbrough, West) Edwards, C. (Monmouth, Bedwellty) Lunn, William Walsh, Stephen (Lancaster, Ince) Finney, Samuel Maclean, Neil (Glasgow, Govan) White, Charles F. (Derby, Western) Glanville, Harold James Mills, John Edmund Wignall, James Graham, D. M. (Lanark, Hamilton) Myers, Thomas Wilson, W. Tyson (Westhoughton) Griffiths, T. (Monmouth, Pontypool) Parkinson, John Allen (Wigan) Grundy, T. W. Richardson, R. (Houghton-le-Spring) TELLERS FOR THE NOES.—Mr. Davison and Mr. A. Short.
Message from the Lords
That they have agreed to,
Farmers' Land Purchase Company Bill,
Lands Improvement Company Bill, without Amendment.
That they have passed a Bill, intituled, "An Act to control temporarily the exportation of certain Fertilisers." [Fertilisers (Temporary Control of Export) Bill [ Lords. ]
Also, a Bill, intituled, "An Act to consolidate and amend the constitution of the Governor and Company of the Bank of Scotland; and to provide for the management of its affairs; and for other purposes." [Bank of Scotland Bill [ Lords. ]
Also, a Bill, intituled, "An Act to empower the urban district council of Gelligaer to acquire lands and to construct street improvements; to confer further powers on the council in regard to their electricity undertaking; to authorise the council to provide and run omnibuses; to make further provision with regard to the improvement, health, local government, and finance of the district; and for other purposes." [Gelligaer Urban District Council Bill [ Lords. ]
And also, a Bill, intituled, "An Act to repeal and re-enact with Amendments the Pontypridd Stipendiary Magistrates Act, 1872." [Pontypridd Stipendiary Magistrates Bill [ Lords. ]
Bank of Scotland Bill [ Lords ],
Gelligaer Urban District Council Bill [ Lords ],
Pontypridd Stipendiary Magistrates Bill [ Lords ],
Read the First time; and referred to the Examiners of Petitions for Private Bills.
Bills Reported
Swansea Corporation Bill,
Reported, with Amendments, from the Local Legislation Committee (Section A) [Title amended]; Report to lie upon the Table, and to be printed.
Marriages Provisional Order Bill,
Reported, without Amendment [Provisional Order confirmed]; Report to lie upon the Table.
Bill to be read the Third time Tomorrow.
Southampton Corporation Bill,
Reported, with Amendments [Title amended]; Report to lie upon the Table, and to be printed.
Severn Navigation Bill [ Lords ],
Masham Urban District Council Bill [ Lords ],
Reported, with Amendments; Reports to lie upon the Table, and to be printed.
Increases of Wealth (War)
Report from the Select Committee, with Minutes of Evidence, brought up, and read.
Report to lie upon the Table, and to be printed. [No. 102.]
Orders of the Day
Profiteering (Amendment) Bill
As amended ( in the Standing Committee ), considered.
4.0 P.M.
On a point of Order. Under the Standing Orders, as I understand and as far as I recollect, if a Member makes application to you to move the Adjournment of the Debate, it may be refused by you on the ground that the Motion is an abuse of the Rules, and it would be so recorded. I am not particularly anxious about what appears on the records with regard to myself, but I would ask you whether, after the Division which has taken place, you would feel compelled to refuse to accept such a Motion if I made it?
The right hon. Gentleman is cautious, and it is no doubt due to his previous experience. I should certainly think that the Division settled the matter, and that the House must proceed with the Bill.
I have upon the Paper a new Clause (" Provisions as to the production of documents, etc." ) in connection with a matter which was dealt with in the course of the Committee stage by my hon. and learned Friend opposite (Sir H. Nield). He also has put down a Clause (" Investigation as to proprietary articles " ), and I recognise that in some respects his Clause is better than the one which I proposed to move. Accordingly, I have informed him, if he will put his Clause in a certain form which I have given to him, that I shall be glad to take it in that form rather than in the form I myself proposed. If he be willing to accept that suggestion, then we shall get rid of the difficulty.
NEW CLAUSE.—(Investigation as to proprietary articles.)
Nothing in this Act or in the principal Act contained shall (in its application to a proprietary article hereinafter defined) require particulars of any secret process of preparation, or of the ingredients used in the composition of such article to be furnished; but the Board of Trade shall be entitled to require that the cost of any such article (exclusive of overhead charges) shall be furnished by the proprietor under the certificate of a duly qualified chartered accountant verified by statutory declaration.
A "proprietary article" shall be deemed to be any article, the exclusive property of any individual, or company, or firm, the composition of which is secret or in the preparation of which secret processes of manufacture are employed.—[ Sir H. Nield. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I am very glad to avail myself of the offer of the right hon. Gentleman, and I am flattered in that he regards my Clause as better than his own. I accept the Amendments which he suggests, and I move the Clause in that form.
I beg to second the Motion.
This matter was raised in Committee, and we then had an assurance from the President of the Board of Trade that he would draft an Amendment which would prevent the owners of these proprietary articles escaping from the effects of the Bill. I am still afraid that the new Clause proposed will be detrimental to the efficient working of the Act. I fail to see, even under this Clause, how it is going to be possible for the Department to arrive at an efficient estimate of the cost of producing the article. The matter is certainly worth more investigation by the right hon. Gentleman before he accepts the Clause. The Bill with this Clause will be absolutely valueless so far as proprietary articles are concerned.
This is just an example of the difficulties under which the House is labouring in considering this most important Bill. This is the first day's proceedings, and I received the Report of the first day's proceedings in Committee only this morning. I had no opportunity of seeing the Bill, as amended in Committee, until I arrived at the House to-day. I had numerous other engagements and business which prevented my seeing that until I sat on this bench. I just wish to say that this method of procedure is not creditable to the Government, and it is certainly most inconvenient to the House and very misleading to the public. The matter, of course, cannot be amended now, but I only enter my protest at the way in which business is ordered in connection with a Statute which comes to an end on Wednesday next. We are compelled to deal with a Bill which carries on what I agree is a very unenviable but necessary matter, and we have to debate it under the conditions which we have done to-day.
I am afraid that I mislead my right hon. Friend in the answer which I gave him privately a moment ago, when I said that this particular point was raised on the first day's proceedings, and accordingly I am subject to the full imputation of my right hon. Friend's criticism against the course of the proceedings On the other hand, the Leader of the House has also shown the necessity under which we are labouring at the present moment in order to get through the legislation which is necessary if we are to carry on the original Act. With regard to the principle which is involved in this Amendment, the considerations which have led the Government to accept the suggestion of my hon. and learned Friend are these. You have in this country many secret processes of manufacture which are enjoyed as a matter of property by the people who have discovered them and to whom alone their composition is known. It would obviously be destroying their right of property if you made the subject of public investigation the precise ingredients of the composition which they have for themselves discovered. Accordingly, in making these investigations, it is only fair and just that we should protect the property of those people. Under those circumstances, what we have got to discover is a method by which we can, in the first place, do the right and fair thing, and by which, in the second place, we can protect the public against too high charges being made for these articles.
I do not at all agree with my hon. Friend who spoke from the back Benches opposite (Mr. Guest). He took a very great interest in the proceedings of the Committee and he was very helpful at all its stages. I do not share his view that this would be at all unworkable. Many persons who have been associated with investigations which have had a certain amount of secrecy about them know that you are entitled, and often compelled, to rely solely upon the certificates you get from skilled people as to the cost of a particular article of manufacture. That is a form of certificate which is well known. It is well known to most of us in the legal profession, and, accordingly, I am perfectly assured in my own mind that you will be able, by the form taken in this Amendment, to ascertain in truth what the cost of these articles is to the manufacturer, so as to be able efficiently to protect the public. Accordingly, I am perfectly agreeable to accept my hon. and learned Friend's Amendment, knowing full well that we shall do justice both by the public and by the manufacturer under the method which he has suggested.
Before we pass from this Clause, I would like to ask the President of the Board of Trade as to whether, on this point, we are not attaching too much importance to the question of secrecy. I wonder if he has seen the very interesting Report of the Commission which was sent to investigate the chemical industries of Germany, in which this question of secrecy was gone into. In those great chemical industries one might think that the process of secrecy would play an important part, but in the Report of the Commission, which was composed of very competent and expert people, we find that they saw everything that was to be seen, and that the chief impression they gathered was that the success of this particular industry was due rather to skill and care than to the possession of any special secrets. It was persistently pointed out to them that there was no mystery about the process. In the chemical industry, in which secrecy is said to play a very great part, that consideration does not weigh there.
I am dismayed by the way in which we are attempting to legislate on this question. I fully recognise the difficulties of the right hon. Gentleman, but he has, at the last moment, adopted an Amendment proposed by my hon. and learned Friend opposite which it is difficult to follow, and the effect of which is to make this new Clause applicable only to a "proprietary article." We understand in common language what a "proprietary article" is; a familiar instance of it is a "quack medicine." I understand from the right hon. Gentleman, however, that this Clause is intended to apply not only to articles of which the composition is secret, but it is intended to apply also to processes which are properly secret.
indicated assent.
The right hon. Gentleman confirms what I suggested, yet the Clause as drawn is surely as loose a definition as was ever put into an Act of Parliament. A "proprietary article" shall be deemed to be "any article." In the original Act "article" is defined as a variety of things. I should like to give for a moment an illustration of what certainly is an article which is exclusively the property of an individual. I refer to a particular brand of steel or iron. Under the particular Clause that brand of steel or iron, however secret it might be, would have to be public.
indicated dissent.
The right hon. 'Gentleman shakes his head. I have no doubt what his intention is. I am only expressing my own personal opinion, which may be of no value, of little value, or of great value, and I am expressing it under difficulties. But the Clause states that a proprietary article "shall be deemed to be any article, the exclusive property of an individual or company or firm." Does that apply to any brand of steel or iron? Would it be correct to say that a brand of iron or steel is an article which is "the exclusive property of any individual or company or firm"? I do not believe it for a moment, and I believe it would be found that when that class is interpreted by a court of law it does not apply to that class of articles at all; it applies only to a particular thing like a medicine, or that kind of article.
indicated dissent.
The right hon. Gentleman differs from me, and I bow to his superior wisdom and understanding and information. But I respectfully enter, not my protest but a respectful caveat, against the consequence of legislation which is passed in this manner. I think it is only right and one's duty to point out the consequences to which a thing like this may lead. If the right hon. Gentleman takes upon himself to say that this hastily drafted Clause is the best thing that can be devised, this House has to accept it, but the whole of the responsibility for this Bill will be on the Government or the Board of Trade. This House cannot be held responsible for a Clause put into the Bill in this manner, and I think it right to call attention to what underlies this particular Clause, so far as I understand it.
I think the amended form of the Resolution is certainly a great improvement, and narrows the question very considerably, but I do not even now understand what the Government propose to do. Is it or is it not a total exclusion of proprietary articles from the Bill?
indicated assent.
If so, what is the effect? In this Clause a proprietary article applies to anything you like. It makes things very difficult. Supposing somebody complains to a Tribunal about being supplied with such an article at an excessive price. By the Government Amendment a Tribunal cannot go on with the case at all; but now it is substituted for that in this new Clause that the Board of Trade shall require the owner of the article to produce a certificate of the cost guaranteed—I take no particular objection to that—by the certificate of a qualified accountant. I do not particularly object to that either. Will a Tribunal have power to say that the price charged is excessive for such an article, and will they be able to order a refund of so much of the cost? If that is what is intended, the original Clause of the Government certainly would not have allowed that, because you are caught out at once, and cannot get the evidence.
indicated dissent.
It is perfectly plain from this Clause—it says, Board of Trade shall "require a certificate."
I do not want to go further than call attention to these points, but it is a matter which certainly will affect a large number of people financially, and you cannot be too careful in drawing this Clause. Every patent medicine will come in, and we know what is the cost of a large number of ingredients in patent medicines. It should be clearly understood what is being done, therefore, before passing this new Clause, and how wide it is intended to make the net.
On a point of Order. If this Clause is passed, would it be open to us to suggest Amendments to it?
If the Clause be read a Second time, then Amendments can be moved to it.
It is perfectly obvious that there is some misapprehension in the minds of some Members of the House, and some ambiguity which ought to be cleared up. With regard to what my hon. and learned Friend who last spoke said in relation to patent medicines, obviously this Clause has got nothing to do with them, because the first element of a patent is disclosure. This does not deal with any question of processes which are disclosed, but only with cases in which the process of the manufacture of the article is secret. That is the first thing to be remembered. The patent article, therefore, must be kept entirely out of account. There was in Committee a question raised by people who represent the chemists, and that particular question raised the very point which my hon. Friend opposite suggested in connection with patent medicines, because it is obvious that something far more than the mere ingredients of a patent medicine, or of a prescription, is involved. There is the skill of the man who has enough knowledge how to make it, as in the case of a chemist, and there is the invention of the man who has decided what ought to go into a particular bottle of medicine in order to give the desired results.
A prescription does come under the Act. I used the term "patent medicine," of course, in the ordinary sense of proprietary medicines.
My hon. and learned. Friend is just putting the very point to, which I am coming. It has been decided in the case of a mixture made by a chemist that that is an article for sale. The chemists complain that there was not sufficient importance given to the element of skill in the composition, and they desire that prescriptions made up by chemists from the instructions of a doctor should be excluded entirely from the Bill. The Committee decided that that was not a sound view on the judgment which the Court pronounced in the case to which my hon. and learned Friend has referred. We had the terms of the judgment before us, and the Committee decided with that judgment in view. Of course, it is always encumbent on a Committee, acting fairly, to consider not merely the price of the constituents of a bottle of medicine, but must, in justice, also consider the skill of the man who has put the things together, in estimating whether the price charged is a fair and reasonable price or not. But we arranged that, by a differentiation in the Schedule, we should be able to meet the case of the chemists so far as there was any prospect of unfairness happening in that particular instance, but, when you come to the question of secret processes, you are in an entirely different position. You have a great variety of articles which are being sold in the United Kingdom at the present time, the composition of which has been invented by some person who has applied experience gained in the business to the nature of this particular composition, and the whole merit of it depends on his being able to keep secret the nature of his invention. Anybody can, by analysis, discover the particular ingredients, and he has no protection against their using them, but, in point of fact, one knows that although you can discover what the particular constituents of an article may be, you do not discover the particular way in which the thing is mixed, and that, I take it, is the thing which those proprietors desire to keep concealed from the general run of the public, in order that they may profit by the inventiveness of their own brain and their own skill.
That, I think, is a perfectly fair case. You are not entitled, simply because an investigation is being made in profiteering, to discover that which a person for himself has succeeded by his industry in finding out, and ruin the property which he has thereby obtained. It was necessary, therefore, in my opinion, to protect the secrecy of these compositions. My hon. and learned Friend, I think, is under an error in supposing that the Government Amendment would exclude such articles from investigation altogether. That is not so. It only prevented the disclosure of the secret process and the secret character of the ingredients. I need not go back on that. Our view certainly was that it would not prevent the cost of the articles in bulk being disclosed, and, therefore, by question and answer as to the bulk commodities they used, divided amongst a number of articles produced from the bulk, you would not be prevented from discovering what was the cost of the articles; but you would prevent the compelling of the disclosure of the particular mixture. I thought my hon. and learned Friend's Amendment was more explicit than my own Amendment, and that was why I was ready to adopt it. He has provided a way by which we can get at the costs. He said, engage a qualified accountant, whose certificate you can accept, and then you will be able to say whether profiteering is going on, having regard to the cost at which the thing is made, and the price at which it is sold. That seems to be a complete way out, to be fair to the manufacturer and also to safeguard the public from excessive charges. I regret very much indeed that the House should have to deal with this matter at such short notice. I am afraid I can only deal with the situation in which I find myself, and, while I apologise to the House because Members have not had an opportunity, which they and I would have desired, of considering these Amendments at length, I hope I may throw myself upon the indulgence of the House, and ask the House, with these explanations, to agree to the Clause suggested by my hon. and learned Friend.
Could the right hon. Gentleman say why it is necessary to put in "proprietary article" at all, and the safeguard of the very vague definition following? If you cut out the parenthesis you omit the difficulty.
I appreciate, of course, what my hon. and learned Friend has just said, but I did not want to roam over more country than was necessary, and, although I have great diffidence in contesting the legal proposition he has laid down with regard to a composition made of iron or iron produced by a particular process, I am perfectly certain that, if it were necessary to form a judgment upon that question, the case he mentioned would be covered by the definition. But it is not that class of things we are concerned about at all. This Bill has to do with articles in common use. It is really the cost of living to which we are looking in dealing with this Profiteering Bill. We do not propose to range over all the wide regions of industry, and one must keep in view the particular class of things with which one is dealing, and apply one's mind, having that carefully in consideration. I appreciate what he says, but I think if we pass the Clause in the way it has been put, we shall not' do any detriment to anybody, and will achieve the object at which we are aiming.
Of course, the right hon. Gentleman is aware that all medicines are brought out at a certain price. Is there not a chance of dealing with the matter where the charge is made over and above the ordinary recognised price of the article?
If I follow the question, my answer would be in the negative.
The object of this Clause, especially the limitation put in the definition, is to reduce within the narrowest limits those articles which are not to be subject to the full investigation of the Board of Trade. The Board of Trade do realise that in this narrow limit there is a hardship in allowing any person authorised by them to make this examination into the secrets of the trade, which, if once exposed, would destroy that trade altogether. It is not necessary to say that one has no interest in this matter oneself. One knows perfectly well that tens of thousands, nay, hundreds of thousands, if not millions, have been spent in advertising and creating a market for proprietary articles. That article may be simple in itself, but it is produced by a secret process, and it is desired to protect, within the narrowest possible limits, those persons who have built up that trade which depends upon that particular knowledge. Surely there can be no objection to taking, first of all, a certificate of a duly qualified accountant—an honourable profession, now well-established in this country—verified by statutory declaration, with all the penalties that that carried with it in case of fraud. That is the security in the Clause given to the public. Of course, those costs, when ascertained and verified by the accountant, will form part of the investigations by the officers of the Board of Trade. It will be that link which in the ordinary v ay they will get for themselves by investigation of the books. It supplies that link, and leaves the Board of Trade perfectly free with all the information that is necessary. Do not let it be. supposed that I, who have worked all the way through on the Profiteering Central Committee, who have been from beginning to end desirous to see the Principal Act L. success, am likely to be the person in this House to ask for the Amending Bill to be put in such a form that it will enable a coach-and-four to be driven through its provisions. I am only anxious to see that disputes are narrowed down and limited to the class of persons concerned, and that they are given every opportunity for the investigation to be made secret, the costs being duly certified by a person who is surely to be trusted. I hope the House will accept the Amendment.
I accept the main principle of the Bill, but I am not sure that in the general interest something in the form suggested by the President of the Board of Trade is not more suitable than that which has been moved by my hon. and learned Friend. The President of the Board of Trade has said, we do not pro pose to range over a very wide field. This Act, quite rightly, has two applications. There is the ordinary application, which perhaps has not been quite so successful as some of its promoters would have wished in the profiteering tribunals throughout the country where retail cases are heard. That is one aspect. The other application is the general power of the Board of Trade to inquire into complaints at any stage in the manufacture, production, and distribution of an article. That, to my mind, is a more important and a more valuable provision than the other. It is a provision which, if you are to get a real advantage from it, must be felt by everybody concerned not only to disclose what ought to be disclosed to the general public, but to preserve what ought to be preserved to the persons concerned. I am by no means clear that if the President accepts the Amendment in the form in which the hon. and learned Member for Ealing has moved it that we shall not find ourselves in this rather absurd position: The local tribunal inquiring into whether a chemist or grocer has charged a penny too much for a bottle of patent medicine or a pot of patent food, and the investigation stopping short of any disclosure of, what the President of the Board of Trade rightly says, is the curious combination of skill and cunning which goes to the making of the food or medicine. But when you come to what may he a very much more important inquiry, an inquiry into whether the cost of production of some big basic article is or is not reasonable, it may very well occur that you find yourselves up against a process of manufacture, of which some part is secret, and very properly so, and which the people engaged ought not to be called upon to disclose; whereas they might be called upon to disclose questions of cost and the amount of material which go into the manufacture. What I want an assurance from the. President of the Board of Trade upon—and he knows this Act by heart, he is a very able lawyer—is that we shall not give our protection to the less important case, and a big inquiry, in which we desire to help, but where some secret process is involved, we shall not find that this House is withholding from the more important case a necessary protection from every point of view.
This Amendment, accepted by the President of the Board of Trade, is going to render the Profiteering Acts absolutely valueless, so far as it affects these proprietary articles. The right hon. Gentleman the President shakes his head; but that is how it appears to me. I understand it is a typed Amendment, and that it has been handed in, and therefore I have not got it before me. But, certainly, from the statement of the hon. and learned Gentleman whose Amendment has been accepted, that is how the thing appears to me. It may be that a chartered accountant submits the cost of the ingredients of some proprietary article which is accepted by the Profiteering Tribunal considering the case. But over and above the cost of these ingredients one has to take into consideration the knowledge and skill in mixing them. The proprietor of that article, whose price is being inquired into, can put whatever value he chooses upon his particular skill in the process of mixing these ingredients together to make the proprietary article. That is something you cannot determine at a Profiteering Tribunal; and the result, at any rate, is that the acceptance of this Amendment is going to rule out of the scope of the Act altogether various proprietary articles. The proprietor may put forward his particular skill, and also the fact that he has spent many years in the discovery of this particular process and has spent many thousands of pounds on these experiments order to bring this particular process to a successful issue. All these things would require to be taken into consideration by the tribunal.
We have listened to four speeches by hon. and learned Members of this House, who I daresay are eminent in their profession. Two have expressed one opinion and two the contrary opinion. We lay Members are thus placed in a most difficult position, for when lawyers begin to fall out regarding the meaning and the application of words, and the results arising there from, where are we? In this Amendment reference is made to a duly qualified chartered accountant. Speaking for myself—let me say here—I think it would not be right to try and secure a secret of the character which is involved in this discussion, which concerns the production of a certain article, and might militate against the industrial development and future prosperity of the undertaking. But I should like to ask my right hon. Friend, who is going to appoint the duly qualified chartered accountant? Is he to be appointed by the firm concerned? Is he to be an accountant already employed by the firm, or an individual partly independent and appointed by the Board of Trade? I do not want to suggest for one moment what I should not suggest, but in the case of a gentleman who was engaged by a particular firm being concerned in this investigation, though there might be nothing whatever wrong, such a proceeding would undoubtedly give rise to a suspicion in the mind of the public.
I think I can shorten the proceedings here. I have an Amendment on that subject.
You can move it later. But I suggest seriously that such an appointment as I have indicated would give rise to suspicion and doubt in the minds of the general public unless the certificate from the chartered accountant is from a man who is appointed by the Board of Trade or by some outside authority. Speaking for myself, I should be happy to support some Amendment of this kind having for its object the protection of the secret involved in the production of the article. But I can only do that on the understanding that such an accountant is an independent man appointed by the Board of Trade.
May I point out to the hon. Gentleman who has just sat down that he need be under no misapprehension or be nervous because two lawyers have spoken one way and two the other? Let me assure him that if the reverse had been the case, and these four lawyers had all agreed, there would have been cause for apprehension. All through the years I have been in this House I have never known an occasion when one lawyer who put a certain case was not immediately followed by another who contradicted what had just been said by his hon. and learned Friend.
Considerable weight attaches to what the hon. Member for Wednesbury (Mr. Short) has said as to throwing the responsibility upon the accountant or firm of certifying the cost of any particular article. I do not want to anticipate what my hon. and gallant Friend (Lieut.-Commander Kenworthy) is going to propose, but I do think the Board of Trade should have taken into their hands the right to appoint an accountant to confer with the accountant of the company or firm concerned, so that the public mind might be altogether free from suspicion that the company or firm is not doing other than what is absolutely correct in respect to the article concerned.
Question, "That the Clause be read a Second time." put, and agreed to.
I beg to move to leave out the words "(in its application to a proprietary article hereinafter defined)".
I hope the House will reject this proposal, which will cause mischief by throwing the whole thing open and not narrowing it to particular articles. I want to show my sincerity by keeping the thing down to the narrowest limits, and to those trades and those particular articles in regard to which secrecy is absolutely necessary. I am doing that from the point of view of those who are anxious to see the Act a success and administered successfully.
5.0 P.M.
This is more important than the hon. Member for Ealing (Sir H. Nield) has led the House to suppose. What is the 5.0 P.M. object of this Amendment? It is to protect the disclosure of secret processes in an investigation which either a local tribunal, the Board of Trade, the Central Tribunal, or one of the Committees may undertake. The object should be to protect any secret process from disclosure in any investigation. If that is the object of the Amendment, then the process should be protected whether it is met with in the case of a proprietary article or in any process of manufacture. It is just as important to protect a secret process in the case of the production of steel as it is in the case of a proprietary article. The skill shown in the production of different kinds of steel depends upon the working up of the steel, and the various persons who manufacture steel have their trade secrets, which give the particular results required. Under the circumstances, would it not be perfectly ludicrous to say that in an inquiry into the price of a packet of pills we were to protect the secret process, and in an inquiry as to what was the cost of steel we were not to protect the secret processes employed in that trade?
Steel is not included in the Act.
That really shows the amazing ignorance of the hon. Member for Central Hull. If he had read the principal Act he would know that there are two things dealt with: one is an inquiry into the cost of articles in common consumption and the other a general power given to the Board of Trade to order inquiries into the process of manufacture of any article where complaint is made, or any material. Inquiries have been going on into a large number of these trades, and it will be perfectly impossible to get the co-operation of the people engaged in those industries in inquiries if you are not going to afford them reasonable protection. They are quite willing to give reasonable assistance but if you are going to say to a manufacturer, "You are liable to have your secret processes disclosed, and you are not to be protected," that manufacturer is quite justified in obstructing you from what might destroy his business. I appeal to the President of the Board of Trade to agree to this principle being carried out impartially throughout, and I ask him to protect manufacturers from the disclosure of secret processes in the tours of any of these inquiries.
rose to put the Question —
Really, this is a point of some importance, and I think we are entitled to a little guidance as to what is the meaning of this Clause. I hold no brief for anybody in this matter. Some of us have rendered considerable assistance in regard to this measure in the past, and we are now asked to deal with it at short notice. We do not complain, but we find ourselves up against what is admittedly a very difficult proposition which may affect any industry in this country, and it is not in keeping with the characteristics which the right hon. Gentleman generally displayed that he does not let us know the effect of this Clause.
Amendment negatived.
I beg to move to insert after the word "declaration," the words, "The Board of Trade or the Committee or Tribunal may nominate a duly qualified accountant to investigate and verify the costs furnished."
There would be no means of checking the statement of costs put forward by the accountant employed by the proprietor of the article under investigation. I make no charge of any sort against accountants, whose standard of pro fessional honour is very high and very widely respected, but suspicion may rest, nevertheless, and it would be as well to to give the opportunity if the Board of Trade, the Committee, or the Tribunal are not satisfied with the accountant's report of checking that by another accountant nominated by themselves. An hon. and learned Member suggests that I should put in the words, "If not satisfied may nominate a duly qualified accountant;" but I do not agree with his suggestion, because that would appear to suggest a lack of confidence in the profession of accountants. I have adopted the word "may" instead of "shall" in my Amendment, and that will make it clear that only in case there was any good reason to have a second opinion would it be advisable in the interests of the public to nominate an accountant. I should think the cases where a second opinion would be required would be very few, but the fact that it was known that the Board of Trade or the Committee or Tribunal have the power to appoint a duly qualified accountant on their own account would make the proprietors of proprietary articles doubly careful that the evidence they put in was correct.
I beg to second the Amendment. It does not contain any reflection on the accountants' profession, and I should be very sorry to associate myself with any Amendment reflecting upon that profession. From the point of view of insuring public confidence in the administration of this Act, I think nothing could do more in that respect in connection with this Clause, which I think will arouse a good deal of feeling, than the acceptance of this Amendment.
We are apt, when discussing any question of a profession such as is referred to here, to pay a tribute to that profession, and then perhaps make some reference to the possibility that there may be some persons in that profession who are not above suspicion. I do not know whether I shall be accused of paying a compliment to chartered accountants or otherwise, but what I feel is that if you are going to treat chartered accountants as a profession which can be trusted, let it alone, and do not put in an unnecessary check of this kind. If you are going to arrange for what I may call a hostile chartered accountant to be put in to check a report already given by another chartered accountant, you may be doing away with the whole point of the safeguard you are trying to establish. I will take an extreme case. An accountant may be appointed for the very express purpose of getting for some other interested persons the very secrets we are trying to protect.
I resent the last insinuation that a chartered accountant would accept an appointment of this kind, and would really go for the purpose of obtaining a secret process on behalf of some client.
I hope I did not say that. I was pointing out that it might have the effect of putting within the knowledge of another chartered accountant, who might be hostile, information which it was extremely undesirable he should have. I should be the last person to attack a profession which I have seen as much of as any hon. Member of this House, and I have the very highest opinion of the profession, who have the great advantage of being able to manage their own affairs in such a way as to keep the profession extremely select.
I am glad the hon. Gentleman has made that statement. Every chartered accountant has to carry secrets of all sorts in regard to business, and he has to be very careful not to disclose to various people the secrets of others.
I want the right hon. Gentleman to accept this Amendment for the sake of the accountants who will be called upon to act. What would happen would be that an accountant acting on behalf of his client may perhaps be in the position of having pressure put upon him by his client to make the case out as well as possible, and it will be a great advantage to an accountant in that position to be able to say that an independent accountant might come in from the Board of Trade, and that it is therefore important that there shall be the most extreme accuracy.
I see no objection to this Amendment if we can omit from it the word "tribunal," because that would only cause confusion. A tribunal has now no right to investigate the costs of a manufacturer. It can only deal with a retail sale. Directly it appears to a tribunal that it is the manufacturer who may be said to be profiteering, their duty is to refer the case to the Profiteering Act Central Committee, who alone have the right to go into that. If the Amendment were to the effect that if the Board of Trade, or any committee set up by the Board of Trade, so desire they may ap- point another accountant to investigate, I should not object. It would very seldom happen, owing to the high standing to which all chartered accountants have attained, that the Board of Trade would be called upon to exercise that power, but, at any rate, if it would give satisfaction to my hon. Friends, and if it can be made clear that the word "tribunal" is not to be used, I think it might be accepted.
I recognise the force of the arguments that have been put forward in favour of this Amendment, and in particular I was impressed by what was said by my hon. Friend the Member for North East Derbyshire (Mr. Holmes), who is well acquainted with the accountant's profession. I should not, however, myself be so concerned as he appears to be about the pressure that might be put upon them. I do not like the idea of having two accountants at work upon this matter, one supposed to be on one side and one on the other. From my professional experience I feel sure that, if you put on a person whose certificate is to be scrutinised by another, who is intended to represent, so to speak, the opposite interest, every man, under those circumstances, becomes to some extent a partisan of the person by whom he is appointed. Accordingly, I am strongly of opinion that we should only have one skilled accountant at work in the investigation. I feel, however, that there may be instances in which the report might tend to be coloured by, let us say, the intimate association of the accountant with the particular firm for whom he is accustomed to work, and, accordingly, if the House will agree, I would suggest that the Clause might read as follows:
"Under the certificate of a duly qualified accountant approved by the Board of Trade, whose report shall be verified by statutory declaraton."
I think that would result in the appointment of an independent accountant, because the Board of Trade would see to it that the accountant appointed to make the investigation was in a position to exercise an independent judgment.
In view of what the right hon. Gentleman has said, I beg to ask leave to withdraw my Amendment.
No.
The hon. and gallant Member's Amendment is not yet withdrawn, but until it is withdrawn it would not be in order for the right hon. Gentleman to move the Amendment he suggests.
I object to the Amendment which the right hon. Gentleman proposes to move, and that is why I object to the withdrawal of the Amendment now before the House. The most important reason for my objection is that the Government do not know their own minds about this Bill. They keep on moving different Amendments and accepting other people's Clauses at the last moment, and I do not think that ought to be done. The hon. Member for North-East Derbyshire expressed indignation at what he called the aspersion which was cast upon accountants by the hon. Member for Watford (Mr. Herbert). I do not think there was any aspersion. The hon. Gentleman then proceeded himself to cast an aspersion upon accountants. He says he is in favour of the Amendment of the hon. and gallant Member for Hull (Lieut.-Commander Kenworthy) because the employer of the accountant would put pressure upon him to give a favourable return. Surely, however, an accountant, if he is an honourable man, as most of them are, would resist such pressure.
I am afraid I did not express my point fully. What I meant was that friction would be caused between accountant and client, because the accountant would refuse to yield to the pressure which might be put upon him.
That is casting an aspersion both on the client and on the accountant. I have had some experience of accountants who audit the reports which I have to submit to my shareholders. If by any accident they were to say that anything was wrong, I should ask them to explain, but I should accept their decision without any question. They are there to do a certain duty. The facts having been put before them, it is their duty to state what, in their opinion, is the result of their examination. For the client to tell them to make some report which is not in accordance with the facts is even worse than it would be for them to accept it. If there were an accountant and a client with that intention, we need not suppose that Acts of Parliament passed in the manner in which this Act is being passed will prevent fraud of that description. The Amendment suggested by the right hon. Gentleman merely says that the Board of Trade shall approve. That means that the Board of Trade shall appoint the accountant, who will be a judge in their own case. It would be all right while the right hon. Gentleman himself is there, but we do not know who will succeed him, and the result of saying that the Board of Trade shall approve might mean that they would only approve of the man whom they choose to put there themselves. I think it is far better that there should be no Amendment now. If it is necessary to alter this Clause, the proper way to do so is after due consideration in another place.
We shall never be able to make this Act work unless it is worked with the co-operation of the people concerned. Accountants' certificates have been taken, and are being taken to-day, in hundreds and thousands of cases in which the Government is settling up accounts. When an accountant's certificate is asked for, it is the certificate of the ordinary accountant who audits the books of the firm. That is the natural thing to do, in view of the high standing of the profession, and it is never called in question. If we go into this legislation on the basis that we are going to spy throughout every process of trade, and are not even going to trust the ordinary auditor of the firm concerned, we shall never even begin to make this Act a working success. I want these inquiries to be made, and the public to be informed of their results, and I want confidence in manufacture and in industry; but if the whole matter is going to be based on suspicion from the outset we might just as well not set up the Act at all, because it will never work. There is a very wise Clause in this Bill, which gives the right hon. Gentleman the power to try and come to arrangements in a trade for selling goods at a fair and reasonable price arranged in the trade. That is a very sensible arrangement, but is it compatible with the double suspicion which we should get under the arrangement suggested? If these inquiries are to work, it must be by both sides putting their heart into it, and you must take the word of the accountant who knows the business. All he is asked to do is to give a certificate of certain costs, which is a pure question of fact. The proper course is to ask for the figures you want, and trust to the accountant who knows the business to give you those figures.
What is the use of the hon. and gallant Member opposite (Sir P. Lloyd-Greame) saying that we do not want suspicion? There is suspicion in the country, and that is why we have this Bill. Let us face the facts. The hon. and gallant Member seems to be absolutely out of touch with his own constituents, and with other ordinary workaday people living on a weekly wage. There is suspicion. The prices of most things are two or three times what they used to be. The index figures of the Board of Trade is 136. Indeed, it has probably gone up, owing to the increase in the price of coal. At the Same time these enormous dividends are being declared, like the 500 per cent. which was brought out in answer to a question. We want the explanation. It is the fact that this suspicion exists, and it is no good making any bones about it We have to try and allay it, and, if possible, remove the grounds for it, if they exist. I was prepared to withdraw my Amendment, in view of the fact that the President of the Board of Trade has suggested another. Personally I do not think it is so good as my own, but probably that is because of my personal bias. Nevertheless, it is something which will give us some check, which will ensure, to use the language of the street, that there is no jiggery-pokey about it. It is no use our throwing bouquets to the profession of accountants, or to employers or manufacturers. The indignant people of the country want to be certain that they are not being tricked in some way. The general feeling in the country is one of suspicion and rising anger about this matter. They see that the first Profiteering Act has been very largely a failure, and they are not going to stand it any longer. But let us have this one safeguard.
The course I propose to take is to stand by what I said, that I think mine is the proper Amendment to make. Accordingly, I shall ask the House to negative the Amendment of the hon. and gallant Gentleman (Lieut.-Commander Kenworthy) if it is not withdrawn. I regret that the right hon. Baronet (Sir F. Banbury) should have made an attack upon the Government and myself for not knowing our own minds because we had adopted Amendments suggested by other people. I hope my mind will never be so small as to be impervious to good reasons for adopting another course. I hope one's mind is always capable of some expansion under these circumstances. At any rate, I have been convinced by the argument that has taken place that something of this kind is necessary in order to create the confidence we all desire, and I think what I have suggested will also meet what the hon. and gallant Gentleman (Sir P. Lloyd-Greame) has suggested. He says you must have confidence on the part of the people whose businesses you are going to investigate. If they are going to have real confidence in the accountant, that is sufficient to give them confidence that the investigation is going to be a right one, and the Board of Trade will not disapprove of an accountant whose reputation is known to them and cannot be challenged. Under those circumstances, I think my Amendment is the proper one to be adopted.
Amendment negatived.
I beg to move, after the word "declaration" [" verified by statutory declaration "] to insert the words "The accountant by whom the certificate is to be given shall be approved by the Board of Trade."
I presume any accountant belonging to either of the two recognised official bodies of accountants would be accepted. I should suppose as a matter of course any such accountant would be acceptable to the Board of Trade as he would be to any commercial or official body.
That will be so in general, but there might be particular exceptions.
Amendment agreed to.
I beg to move to leave out the words "the exclusive property of any individual or company or firm."
This is only an attempt to remedy what I think has been an unfortunate decision, namely, to include proprietary articles. What I contemplate is that when any basic material comes to be inquired into and someone objects to disclosing the secret processes of its manufacture, if it is taken to the Court the Court will say, as steel is not the exclusive property of any individual, company or firm, the particular person in question is not protected by the Clause. I do not move this Amendment in any sense of hostility to the right hon. Gentleman's proposal, but merely to try to assist the proper preparation of the Clause. If the right hon. Gentleman prefers to leave it to be dealt with in another place I should accept his judgment. I think if the words are omitted it will make it reasonably plain that any article which is generally used by a large number of people may well come under the protection of the Clause.
It seems to me that if the hon. and learned Gentleman's object is to be carried out he would require to remove the word "proprietary" in the earlier part of the Clause, and if that is to be done it will have to be done in another place. Possibly he will succeed in having his point of view adopted there It is one to which I have no very strenuous objection. I suggest that he should leave the matter to be dealt with in full in another place.
I have no friends in another place, and the right hon. Gentleman has plenty. If he will undertake to get the matter put right I am quite content to leave him to do it. [HON. MEMBERS: "No!"] Hon. Members who wish all these secret processes to be disclosed will object to the Amendment. I was encouraged to believe the right hon. Gentleman would deal with the matter in another place, or accept my Amendment, because I understood he was not altogether reluctant to accept the original Amendment and it is rather against his better judgment that we have got into this tangle. I cannot undertake to get it straightened out in another place and I urge him to give an indication of his readiness to get it removed. If not, the Clause will be an exceedingly difficult one.
May we have this undertaking? Will the right hon. Gentleman go into the question before it comes up in another place and consider, if he leaves this as it is, whether it will not mean that secret processes will be disclosed if they do not happen to fall within the term "proprietary articles?
:I could not give the undertaking the hon. and gallant Gentleman asks for, It would be entirely out of keeping with my responsibilities in the matter. But I am willing to give an undertaking to go into the matter and see whether the Clause meets the point of view which the hon. and learned Gentleman has suggested. I have already given my opinion, for what it is worth, that the case with regard to which he has some fears would be covered by the words in which "proprietary article" is defined, but if he still has apprehensions I am quite willing to do my best to have it made perfectly plain that the cases to which he has referred would be covered.
That is quite sufficient for me, and I ask leave to withdraw.
I hope the right hon. Gentleman will be very guarded in any representation he makes to another place. An invitation by the hon. and learned Gentleman (Mr. Inskip) or the hon. and gallant Gentleman (Sir P. Lloyd-Greame) is very insidious and is likely to try to get behind the whole object of the Bill, and I ask him not to be misled by those two sirens who are piping so sweetly to him with a view to what will ultimately happen—driving the vehicle well through the Act of Parliament.
I am only too glad to see the Government accept Amendments and to know that they have a mind which will listen to reason. All I meant to say was that the Government should not at once fall into the meshes of the siren who sits opposite to him.
The right hon. Gentleman is very anxious to get the Bill through quickly, but I do not think he will attain his object if he goes too far in the direction hon. Gentlemen opposite have indicated. If he does, when the Bill comes back I am sure on this side of the House we than offer very strenuous opposition.
Amendment, by leave, withdrawn.
Proposed Clause, as amended, added to the Bill.
NEW CLAUSE.—(
In any proceedings or investigation of complaints made in respect of a wholesale transaction which are referred by a local tribunal to the Central Committee set up by the Board of Trade under the principal Act, or to any sub-committee thereof, the notes of evidence, if any, taken by or before such local tribunal and any documents put in by a retailer against whom complaint is made and investigated by such local tribunal, and which purport to disclose the price charged for the goods, the subject of the investigation by a wholesaler shall be deemed primâ facie evidence of the transactions alleged as between such retailer and wholesaler, respectively, but shall be subject to be rebutted by the wholesaler in any proceedings against him in respect of the sale by him."—[ Sir H. Nield. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I think the right hon. Gentleman will admit that very great inconvenience has been occasioned by reason of cases in which a wholesaler is thought to be a profiteer where the case made against a. retailer before a tribunal has broken down, because it has been proved that the price of the article which the retailer has had to pay to the wholesaler has left him a very small margin of profit, and therefore he is not the profiteer. Then the matter has had to be referred to the Central Committee dealing with complaints as against the wholesaler. Then we are in this position, that the retailer, dreading what may happen if he readily consents to be the complainant as against the manufacturer or wholesaler, refuses to have anything more to do with it. He has satisfied the local tribunal that he is not a profiteer, and he goes away and wants to forget all about it, so he declines to allow his name to be used as complainant against the wholesaler. There the difficulty is, in investigating the matter, to have access to the particulars and to make them evidence before the Profiteering Central Committee dealing with the wholesaler. It has been found in practice extremely difficult, almost insuperable, to conduct cases of that sort where the local retailer will not be the complainant. Therefore, having had the experience of the last 15 or 16 months, I have put down this new Clause in the hope we may avail ourselves of the opportunity presented by this Bill to remedy what has proved to be a very serious defect.
I beg to second the Motion.
I regret very much that I am not in a position to accept this new Clause. I have been aware that there have been some difficulties from time to time in connection with the matter which my hon. and learned Friend mentioned, namely, getting a retailer to appear against the wholesaler. In a large measure that has been due to the fact that the retailer was afraid that if he did make a complaint against the wholesaler the result would be that the wholesaler would cease to supply him with the goods on which his business depends. We have sought in this new Bill to remedy that position by making victimisation impossible; at least we hope so by putting the wholesaler in the position that it would be an offence on his part to refuse to give goods to a retailer who had appeared against him. That is the object of one of the Clauses. My hon. and learned Friend will appreciate the difficulty of altering the ordinary rules of evidence in the way in which his Clause would do. In an inquiry before the local committee the wholesaler has not an opportunity of appearing. He is not called. All the evidence that is given is given in his absence. He has no opportunity of cross-examining, and the result is that a body of evidence might be put upon notes which might be quite honest, but, on the other hand, might be quite incorrect. When it comes to a question of proceedings in a court of justice—for that is what the Amendment evidently refers to, which the central committee set up—
No, I am referring to the proceedings before the central committee and the reference by the local tribunal to that committee.
If that is what the Amendment means, there is absolutely no objection to the Central Committee 'having before them the notes of evidence given before the local committee. They can get any material they choose. There is no impediment to their having before them the notes of evidence which have been taken before the local committee. The difficulty is, that what my hon. Friend begins with is a question of pro- ceedings, and those proceedings are proceedings before a court of summary jurisdiction, where a prosecution takes place. At least they would cover that.
Look at the second line.
My hon. and learned Friend's Amendment would cover a case before a court of summary jurisdiction. Accordingly, what you would have would be what is in fact a criminal trial, where you are going to accept as primâ facie evidence notes upon which no cross-examination has taken place, and where the person who is accused has had no opportunity of being present. In my view, that is contrary to all our proceedings. One knows that as a matter of fact, in the ordinary prosecutions in England before a court of summary jurisdiction, notes of evidence are taken for the Quarter Sessions, and at the Quarter Sessions the whole case is reheard, with the parties present, and with an opportunity to all parties to state their own case. This Amendment would upset the whole of that course of procedure, which has been in vogue in this country for many years. I do not think my hon. and learned Friend really wants me to adopt a course such as that, but his Amendment would mean that. If he only means that the Central Committee should have an opportunity of seeing the evidence which has been given before the local committee, there is no impediment to that being done, so far as I know. They are not bound by any rules of procedure, and it is perfectly competent for them to have these notes put before them. I do not think there is any real objection to that being done before the Central Committee, providing there is opportunity for the wholesaler being called before them and for him giving evidence rebutting what has been stated. I think that opportunity exists now. It is because the new Clause seems to cover the wide ground I have stated that I object to it; but if my hon. and learned Friend's view is a limited one I do not think the Amendment is necessary.
Practice has shown it to be necessary. Perhaps my right hon. Friend will consider the necessity for making a regulation which at any rate will guide us in future. Evidence is given upon oath, and the proceedings have been hitherto regarded as being of a character requiring some such authorisation as is proposed here. I do not intend to press the Amendment. I will withdraw it, but I would point out that whatever proceedings there may be in Scotland, the proceedings in this country before a court of summary jurisdiction do not necessarily involve taking notes of evidence. On appeal one often finds that there are no notes of evidence. I hope the right hon. Gentleman will see his way to deal with this matter later. I am, however, perfectly willing after his explanation to withdraw the Clause.
Motion and Clause, by leave, withdrawn.
CLAUSE 1.—(Schemes for fixing reasonable rates of profit.)
"Where any persons or associations of persons appearing to the Board of Trade to represent a substantial proportion of the persons engaged in the production or distribution of any article or class of articles to which the Profiteering Act, 1919 (hereinafter referred to as the principal Act '), is applied, submit to the Board of Trade a scheme limiting the profit to be allowed on the manufacture or distribution of the article or class of articles at all or any stages of manufacture or distribution, the Board of Trade may, if they think it expedient, approve the scheme, and where any such scheme is so approved any profit sought or obtained in connection with the sale of any article to which the scheme relates which does not exceed such profit as is allowed by or under the scheme shall not be deemed unreasonable for the purposes of Section One of the principal Act."
I beg to move to leave out the word "Where" ["Where any persons"].
When I spoke on the Second Reading I expressed, on behalf of the Labour party, our dissatisfaction with its provisions, and said that we would seek in committee to amend it drastically. I regret that on the Committee stage we have failed to carry our Amendments, and we, therefore, appeal to the sense of the House with a view to securing their adoption. This Amendment seeks, obviously, to strengthen the Clause which, as it stands, is unsatisfactory. It is not in our judgment drastic enough, and it is by no means stringent enough. It provides that any association may bring forward a scheme dealing with any article in the production and distribution of which they are concerned, and the Board of Trade may, if it deems it expedient, adopt the scheme, which will ultimately be put into operation. The Clause, however, is purely permissive and voluntary, and if an association or a body of persons dealing in the article fail to come forward with any scheme there appears to be no power provided whereby the Board of Trade—although profiteering may take place in these articles—can step in and compel the association or the persons to introduce a scheme. This Amendment depends entirely upon the Amendment standing in my name further down on the Paper: after the word "scheme" to insert the words attaches such importance. As the Clause stands, it rests entirely on the profiteer or on a body of profiteers, or an association of persons to bring forward a scheme. If they fail to do so, there is no power in the Bill to empower or compel the Board of Trade to introduce a scheme and to compel the association to put it into operation. So long as this is a permissive Clause I am afraid the amending Act will fail, as the principal Act has failed, to deal with the great evil of profiteering.
I beg to second the Amendment. We want to make certain that if there is a body of producers or retailers who are unwilling to allow themselves to be subjected to any form of scheme, then the Board of Trade should have the power to make a compulsory scheme fixing prices.
The provision of the Clause, which was accepted by the Committee on the Bill, foreshadows voluntary schemes on the part of persons or associations who are willing in this way to meet the demands of the community for articles at reasonable prices. The inducement that the Clause contains to people to make such schemes, is that thereafter the price that they charge for these articles will not be deemed unreasonable in the terms of the principal Act. That is some inducement, because obviously it gets rid of investigations which at the best are irritating and at the worst very often create some dislocation in the business firms involved.
6.0 P.M.
I thought that that was a considerable inducement to the classes of firms which one would expect to adopt such schemes. At the same time I must admit that when I started to draft this Clause, I did try to draft it so as to make the schemes compulsory. But after the best consideration I could give the matter, I regarded it as hopelessly impracticable for the Board of Trade or anybody else to invent a scheme which would be suitable or would work. What we are dealing with in connection with these industries is very complicated and delicate machinery, known only to the people who are engaged in the business and who are accustomed to work it.
Suppose we had a body of people who, we desired, should present a scheme for the costing of a, particular class of article which was to be put on the market at a certain price, no outside person could come into the business and say, "You could make a scheme of such and such a character, you could sell an article at such and such a cost, and you could manage to get on with such and such a price." If anybody tried that he would be defeated at once by the very people whom he was attempting to coerce. There is no manufacturer in this country who could not vary the grade of material which you could put into this particular rigid system, and sell something else and cease entirely to manufacture the particular grade of thing with which you are dealing. You could not make practicable any scheme which would last a week if you had not the assistance of the manufacturers themselves. I am so clear about that that I think it worthless to put into an Act of this kind proposals such as that of my hon. Friend, which instead of ensuring the success of the proposals put forward in the Bill, would produce an amount of hostility to the working of your scheme which would defeat your own object.
I do not think that the difficulties are quite so great as the right hon. Gentleman thinks. First, if you have a Clause of this nature-and any companies or associations connected with an industry are to draw up voluntarily their own schemes, they would not want the Board of Trade to hold them up to public dislike for not preparing a scheme, because, obviously, if it were known that a certain trade or industry had failed or refused to prepare a scheme and the Board of Trade were taking action under this Bill the public would immediatetly say "There is profiteering here and the Board of Trade must take action." The right hon. Gentleman also said that it would be difficult for him or his officials to invent a scheme. Of course it would; but if they decided that they must act under this Clause with regard to an industry, they would certainly find that a number of manufacturers in that industry were prepared to assist them. They might not get half the trade to assist them, or they might in some cases get quite half to come together to give them every assistance in preparing the scheme. If the right hon. Gentleman will accept this, but will safeguard himself by adding in the Amend- ment lower down after the words "Board of Trade "the words "if it thinks fit," leaving to the Board of Trade in case there was any difficulty in it the option of acting, he will have in his hand a very powerful weapon for stopping profiteering, because we will get far more voluntary schemes than otherwise he would, while there would be no compulsion on him to act unless he thought fit.
Do I understand that this Clause sets up two Committees: one a Committee of people engaged in manufacturing articles and the other in people engaged in distributing it? That does not appear in the Clause or in what has been said, but it makes a great difference. It is easy for those engaged in manufacturing to get together, form a Committee, and put forward a scheme, and only in exceptional cases they would not do so. When it comes to the retailers, it is much more difficult for them to get together, form a Committee, and prepare a scheme. If there was but one Committee simply of manufacturers and the retailers were left out, they would have the right to complain. I want to know if we are to have two Committees both preparing schemes, or only one representing the manufacturers?
It might be very easy to fix the profits in respect of distribution, but it would be practically impossible to fix the profits for any length of time in reference to the manufacturer. As the right hon. Gentleman has said, it would be the simplest thing in the world to alter the standard of manufacture, whether in making cloth, calico, silk, furniture, carpets, and so on. There are many different grades, and if manufacturers from time to time alter the material or the design, or introduce something that was not in before, they would alter the article, and so alter its valued almost as soon as you had fixed the price. It is because of this great variation in all grades of manufacture that the thing would be impossible. If you were to standardise an article which you could turn out by the million then you could.
Does the hon. Member mean that the employers concerned would act dishonestly?
What I mean is that if you fixed the price to-day you could alter the quality of the cloth or the linen or calico or silk or any other thing, by the introduction of some inferior material.
Will not that add to the profits again by introducing a cheaper and shoddier material?
If it was done, yes. But what we desire to do is to have a scheme introduced whereby the profit can be fixed. What I am endeavouring to show is that a man may be making an article in Northampton, Manchester or London of many different grades or qualities. Take a bedroom suite, irrespective of size or woods, there are so many qualities, so many different kinds of finish or design, all causing variation in the cost of production, that you could not standardise and you could not £x a price which would do justice in all eases, and you are asking something which is practically impossible. I am saying that with some knowledge of manufacture. There are trades in which things are standardised in which it might be done, but in cases where there are such variations it is impossible. You might go into a tailor's shop and find twenty different kinds of cloth, and nobody but the actual manufacturer could state what is the percentage of profit on any particular kind of cloth. It is only at the end of a year when a man has made up his books and paid for his stock that he ascertains whether he has made a large or a small profit or no profit at all. There are manufacturers working on a very narrow line, and if there was a slight falling off in the turnover for the year it would mean the difference between a profit and a loss. If a man doing £50,000 a year in a factory increases it to £100,000 he can by that means, there being no alteration in rate of wages and so on, reduce the profit on that article. But if the figure went down to £25,000, and the rate of his other charges remained the same, he would make a loss on his year's trade. It is because of this variation that a man would need to vary his profit from time to time, according to his turnover, and the circumstances which govern his business.
I would ask the hon. Gentlemen who put forward the Amendment to consider one possibility. If they make it compulsory on the Board of Trade to work a scheme in cases where one is not put forward by the manufacturers themselves, what is likely to happen in those cases where you have got some very big combine and also some small or moderately large firms which are making the same thing? In many trades at present you have got big combines or trusts. They are in a position to kill all the small traders in that particular line if it were not for considerations which may have the effect of preventing them. But if you force the Board of Trade to come in and make a scheme which has not been put forward by agreement between those engaged in the trade, the Board of Trade will, in the interests of the consumer, presumably go to one or two of the biggest of those manufacturers and ask their assistance in making a scheme, and, again, in the interests of the consumer, they would want to fix the price as low as they can. The result will be that those trusts or combines will put down the price to a figure which will give a profit to them, but will absolutely kill all the small independent traders. That is a consideration that ought not to be lost sight of, and is a very serious objection to making it compulsory on the Board of Trade to establish schemes of that sort.
The object of this Bill is to prevent profiteering, and if manufacturers do not put forward schemes it is the duty of the Board of Trade to devise schemes in order to reduce prices. If we are to leave it to manufacturers to choose whether they will put forward a scheme, and if they do not put forward a scheme, and there is nothing further to be done, it will defeat the whole purpose of the Bill. I shall have pleasure in voting for the Amendment.
Question put, "That the word 'Where' stand part of the Bill."
The House divided: Ayes, 221; Noes, 47.
Division No. 109.] AYES. [6.15 p.m. Addison, Rt. Hon. Dr. C. Craik, Rt. Hon. Sir Henry Hope, James F. (Sheffield, Central) Agg-Gardner, Sir James Tynte Curzon, Commander Viscount Hope, Lt.-Col. Sir J. A. (Midlothian) Ainsworth, Captain Charles Davidson, Major-General Sir J. H. Hopkins, John W. W. Allen, Lieut.-Colonel William James Davies, Alfred Thomas (Lincoln) Hopkinson, A. (Lancaster, Mossley) Atkey, A. R. Davies, Major D. (Montgomery) Horne, Sir R. S. (Glasgow, Hillhead) Baird, John Lawrence Davies, Thomas (Cirencester) Houston, Robert P. Baldwin, Stanley Dawes, Commander Hudson, R. M. Balfour, George (Hampstead) Denniss, E. R. Bartley (Oldham) Hunter, General Sir A. (Lancaster) Banbury, Rt. Hon. Sir Frederick G. Dixon, Captain Herbert Hunter-Weston, Lieut.-Gen. Sir A. G. Barnett, Major R. W. Donald, Thompson Hurd, Percy A. Barnston, Major Harry Doyle, N. Grattan Hurst, Lieut.-Colonel Gerald B. Barrand, A. R. Edgar, Clifford B. Inskip, Thomas Walker H. Beauchamp, Sir Edward Edge, Captain William James, Lieut.-Colonel Hon. Cuthbert Beckett, Hon. Gervase Edwards, Allen C. (East Ham, S.) Jesson, C. Benn, Com. Ian H. (Greenwich) Edwards, John H. (Glam., Neath) Jodrell, Neville Paul Betterton, Henry B. Elliot, Capt. Walter E. (Lanark) Johnstone, Joseph Bigland, Alfred Eyres-Monsell, Commander B. M. Jones, Sir Evan (Pembroke) Blades, Capt. Sir George Rowland Falcon, Captain Michael Jones, J. T. (Carmarthen, Llanelly). Blair, Major Reginald Falle, Major Sir Bertram G. Kidd, James Bowles, Colonel H. F. Farquharson, Major A. C. Kinloch-Cooke, Sir Clement Bowyer, Captain G. E. W. Flannery, Sir James Fortescue Lane-Fox, G. R. Breese, Major Charles E. Forrest, Walter Law, Rt. Hon. A. B. (Glasgow, C.) Bridgeman, William Clive Fremantle, Lieut.-Colonel Francis E. Lewis, Rt. Hon. J. H. (Univ., Wales) Brown, Captain D. C. Ford, Patrick Johnston Lindsay, William Arthur Brown, T. W. (Down, North) Ganzoni, Captain Francis John C. Lloyd-Greame, Major Sir P. Bruton, Sir James Gibbs, Colonel George Abraham Locker-Lampson, G. (Wood Green) Buchanan, Lieut.-Colonel A. L. H. Gilbert, James Daniel Long, Rt. Hon. Walter Buckley, Lieut.-Colonel A. Gilmour, Lieut.-Colonel John Loseby, Captain C. E. Bull, Rt. Hon. Sir William James Glyn, Major Ralph Lowther, Rt. Hn. J. W. (Cumberland) Burdon, Colonel Rowland Greene, Lieut.-Col. W. (Hackney, N.) Lyle, C. E. Leonard Burn, Col. C. R. (Devon, Torquay) Greenwood, William (Stockport) Lynn, R. J. Burn, T. H. (Belfast, St. Anne's) Greer, Harry M'Donald, Dr. Bouverie F. P. Butcher, Sir John George Greig, Colonel James William Macdonald, Rt. Hon. John Murray Campbell, J. D. G. Gretton, Colonel John M 'Guffin, Samuel Carson, Rt. Hon. Sir Edward H. Hacking, Captain Douglas H. McLaren, Robert (Lanark, Northern) Casey, T. W. Hambro, Captain Angus Valdemar Macleod, J. Mackintosh Cautley, Henry S. Hanna, George Boyle M'Micking, Major Gilbert Clay, Lieut.-Colonel H. H. Spender Harmsworth, Hon. E. C. (Kent) McNeill, Ronald (Kent, Canterbury) Cobb, Sir Cyril Harris, Sir Henry Percy Macquisten, F. A. Cockerill, Lieut.-Colonel G. K. Haslam, Lewis Mallalieu, F. W. Cohen, Major J. Brunel Hennessy, Major J. R. G. Marriott, J. A. R. Colfox, Major Wm. Phillips Henry, Denis S. (Londonderry, S.) Martin, Captain A. E. Colvin, Lieut.-Colonel Richard Beale Herbert, Dennis (Hertford, Watford) Mildmay, Colonel Rt. Hon. F. B. Conway, Sir W. Martin Hewart, Rt. Hon. Sir Gordon Mitchell, William Lane Cory, Sir J. H. (Cardiff, South) Hilder, Lieut.-Colonel Frank Moles, Thomas Courthope, Major George L. Hinds, John Molson, Major John Elsdale Cowan, D. M. (Scottish Universities) Hohler, Gerald Fitzroy Mond, Rt. Hon. Sir Alfred M. Craig, Colonel Sir J. (Down, Mid) Hope, H. (Stirling & Cl'ckm'nn'n,W.) Moore, Major-General Sir Newton J. Morrison, Hugh Raeburn, Sir William H. Talbot, G. A. (Hemel Hempstead) Morrison-Bell, Major A. C. Ramsden, G. T. Taylor, J. Murray, Lt.-Col. Hon. A. (Aberdeen) Ratcliffe, Henry Butler Terrell, George (Wilts, Chippenham) Murray, John (Leeds, West) Rees, Sir J. D. (Nottingham, East) Thomas, Sir Robert J. (Wrexham) Murray, Major William (Dumfries) Reid, D. D. Thomson, F. C. (Aberdeen, South) Nall, Major Joseph Renwick, George Thomson, Sir W. Mitchell- (Maryhill) Neal, Arthur Richardson, Alexander (Gravesend) Tryon, Major George Clement Newman, Colonel J. R. P. (Finchley) Roberts, Sir S. (Sheffield, Ecclesall) Turton, E. R. Nicholson, Reginald (Doncaster) Rodger, A. K. Wallace, J. Nicholson, William G. (Petersfieid) Roundell, Colonel R. F. Walton, J. (York, W. R., Don Valley) Nield, Sir Herbert Samuel, Samuel (W'dsworth, Putney) Waring, Major Walter Ormsby-Gore, Captain Hon. W. Sanders, Colonel Sir Robert A. Wheler, Lieut.-Colonel C. H. Parker, James Scott, A. M. (Glasgow, Bridgeton) Whitla, Sir William Parkinson, Albert L. (Blackpool) Shaw, William T. (Forfar) Willey, Lieut.-Colonel F. V. Pease, Rt. Hon. Herbert Pike Shortt, Rt. Hon. E. (N'castle-on-T.) Williams, Lt.-Com. C. (Tavistock) Peel, Col. Hn. S. (Uxbridge, Mddx.) Simm, M. T. Willoughby, Lieut.-Col. Hon. Claud Perkins, Walter Frank Smith, Harold (Warrington) Wilson, Daniel M. (Down, West) Perring, William George Smithers, Sir Alfred W. Wood, Sir H. K. (Woolwich, West) Philipps, Gen. Sir I. (Southampton) Sprot, Colonel Sir Alexander Wood, Sir J. (Stalybridge & Hyde) Philipps, Sir Owen C. (Chester, City) Stanley, Major H. G. (Preston) Woods, Sir Robert Pinkham, Lieut.-Colonel Charles Stanton, Charles B. Yate, Colonel Charles Edward Pollock, Sir Ernest M. Steel, Major S. Strang Young, Lieut.-Com. E. H. (Norwich) Pownall, Lieut.-Colonel Assheton Sturrock, J. Leng Young, W. (Perth & Kinross, Perth) Pratt, John William Sugden, W. H. Preston, W. R. Surtees, Brigadier-General H. C. TELLERS FOR THE AYES.— Pulley, Charles Thornton Sutherland, Sir William Lord E. Talbot and Mr. Dudley Purchase, H. G. Sykes, Colonel Sir A. J. (Knutsford) Ward.
NOES. Barnes, Major H. (Newcastle, E.) Hayday, Arthur Richardson, R. (Houghton-le-Spring) Brace, Rt. Hon. William Hayward, Major Evan Robertson, John Briant, Frank Hirst, G. H. Royce, William Stapleton Bromfield, William Hogge, James Myles Short, Alfred (Wednesbury) Brown, James (Ayr and Bute) Holmes, J. Stanley Sitch, Charles H. Cape, Thomas Kenworthy, Lieut.-Commander J. M. Swan, J. E. Carter, W. (Nottingham, Mansfield) Lawson, John J. Thorne, G. R. (Wolverhampton, E.) Davison, J. E. (Smethwick) Lunn, William Walsh, Stephen (Lancaster, Ince) Edwards, C. (Monmouth, Bedwellty) Maclean, Neil (Glasgow, Govan) White, Charles F. (Derby, Western) Entwistle, Major C. F. Mills, John Edmund Wignall, James Finney, Samuel Murray, Dr. D. (Inverness & Ross) Williams, Aneurin (Durham, Consett) Galbraith, Samuel Myers, Thomas Williams, Col. P. (Middlesbrough, E.) Glanville, Harold James Newbould, Alfred Ernest Young, Robert (Lancaster, Newton) Graham, D. M. (Lanark, Hamilton) O'Grady, Captain James Grundy, T. W. Palmer, Charles Frederick (Wrekin) TELLERS FOR THE NOES.— Guest, J. (York, W. R., Hemsworth) Parkinson, John Allen (Wigan) Mr. Tyson Wilson and Mr. T. Hallas, Eldred Rees, Capt. J. Tudors- (Barnstaple) Griffiths.
I beg to move, after the word "Trade" ["the Board of Trade a scheme limiting"] to insert the words "on their own initiative or at the request of the Board of Trade." The President of the Board of Trade has explained that it was impossible for him, if a trade or industry refused to prepare a scheme voluntarily, to compel it to do so. As this Clause now stands, the Board of Trade will take no action; they will simply wait until some industry or trade prepares a scheme and forwards it to them. Although the President of the Board of Trade cannot compel any trade to prepare a scheme, he should have it in his power, or, at any rate, he should have the authority of Parliament behind him, to enable him to request the trade or industry to prepare a scheme. It will then come as an official request from the President of the Board of Trade to the Association of that trade, and if the Association refuses to comply, and can show no good cause for refusing, then the possession of that knowledge in the Board of Trade would assuredly make the Board take action in the direction of inquiring further into the transactions of that particular trade.
I beg to second the Amendment.
I have no objection to acceptance of these words.
I am sorry to hear the President of the Board of Trade say that. The idea of making an Act of Parliament into a piece of propaganda is contrary to my idea of legislation. Legislation is intended to give to persons or Departments powers which are not already possessed or to forbid things which, apart from the Act, are not permitted. What is added by these words? They do not give the Board of Trade any power which it does not already possess. They do not increase the facilities which the traders have for preparing a scheme. I have not the least doubt that the Board of Trade has already been exercising the powers which the words indicate they are to have without these words being included in an Act of Parliament. The words will be absolutely otiose. Then, what is their purpose! I apprehend that the purpose is that some day somebody, by a question in Parliament, may ask the President of the Board of Trade whether he had addressed a request to some particular trader who is obnoxious to an individual Member of Parliament, and that the President will then say that such a request has been forwarded. The Member of Parliament to whom the trader is obnoxious will then hold the class of trader up to obloquy or contempt in order to compel them to do something which, for perfectly good reasons, the traders feel themselves unable to do.
Under this Clause the Board of Trade cannot address a single person.
The hon. Member surely does not suggest that, without his words being inserted, the Board of Trade is unable to address a request or suggestion to a trader to prepare a scheme under Clause 1 of this Bill?
Certainly I do.
Respectfully, I differ from the hon. Member.
We must have that point cleared up. If this is already within the powers of the President of the Board of Trade, the words are otiose. I am not informed on that point.
The reason I accepted the words was that they added nothing at all to the Bill.
Then we need not proceed further.
Amendment, by leave, withdrawn.
I beg to move, after the word "scheme" ["approve the scheme and where "], to insert the words "and direct that such scheme shall remain in force for such period as they may think proper and may, from time to time, extend that period." As the Clause stands, if a scheme is once approved of by the Board of Trade, it lasts for so long as the Act lasts, which is for a year, but there is nothing to prevent the House extending the period, and in all probability it will do so, as I do not imagine that profiteering will have come to an end, or the necessity for dealing with it, at the end of a year. Therefore, the position is that when the scheme is approved for one year, and possibly for two, three, or four, the manufacturer or person selling the articles will be entitled to say, "All the charges I made are reasonable, because they have been approved of by the State." During that. period of one or two years, or less, the conditions may have entirely altered. The cost of production may have gone down, as we all hope it will, and yet the prices fixed under the scheme will remain. I want to guard against such a result as that. The cost of the raw material, labour and other conditions may make the cost of production less, and I think the public, and not the seller, ought to get the advantage of that. On the other hand, the cost of raw material may have gone up, and in that case this would benefit the manufacturer, so that, in the interests of the manufacturer and of the consumer, I submit that the Board should have the power to deal with these orders. Under my Amendment the Board may approve of a scheme for, say, six months, and at the end of that time they can continue it, or, if it requires alteration, they can agree to it in a new form. I hope that the right hon. Gentleman will not say in reply that that would create a want of confidence on the part of manufacturers. I think if the manufacturer knew the position six months ahead, it would give him time to make his arrangements and stabilise the situation, and render it possible for him to make contracts well ahead.
I beg to second the Amendment.
I hope that the right hon. Gentleman will accept this Amendment, which seems to me to be entirely reasonable. I am very much against the Clause, which I think is going to do more harm than good, but I think, with this proposal, it will be possible to deal with many articles of common use and of great importance.
I hope my hon. and learned Friend will not press this Amendment. The period for which it is proposed the Act should last is one year, and if there are extensions, as he anticipates, they can only be made by a subsequent Act of Parliament, in which, if the circumstances are clearly changed, Amendments could be made on the lines which he suggests.
Is it not possible that a Bill to extend the period of the Act may be so drawn that we could not make any Amendment whatsoever except on the question of the extension of the period?
That may be, but I should not think, if the considerations which the hon. and learned Gentleman mentioned existed, that any person who drafted such a Bill would exclude the necessity of making the changes that were necessary. There are two points of view in this matter. The first is, if you are going to ask associations of manufacturers to enter into a scheme, you would by this Amendment do it for some period which to them would be entirely uncertain and which would be left in the discretion of the Board of Trade, and with no indication as to how long the scheme was to last. Under such circumstances, I venture to predict you would have no help from the body of people whose assistance you desire. People cannot make schemes which are going to involve the embarking of a certain amount of capital and care and attention unless they know that they are going to have a certain period in which the scheme is going to operate. The indefiniteness and uncertainty that would follow from the proposal of the hon. and learned Member would mean reluctance on the part of manufacturers to enter into such schemes. Let me take the consideration advanced by the hon. and learned Member as necessitating this change, namely, the alterations in prices which are likely to occur. If the price of raw materials goes up, and if there is a real case which the manufacturers have to present, no public Department such as the Board of Trade is going to remain impervious to the arguments put forward. On the other hand, if prices go down, what kind of circumstances are likely to bring that result about? There is no other circumstance would bring down prices except greater production, and in that case the shortage which is the cause of the high prices would disappear, and until it has disappeared there is no chance of prices going down. If the shortage disappears then you are going to have active competition in the markets and all prices will come down and manufacturers will not be in a position to sell at high prices. Accordingly, I venture to suggest that the apprehensions which my hon. and learned Friend feels with regard to this matter are not upon examination such as to justify this change.
I am prepared to withdraw if the right hon. Gentleman can give me an assurance that on any Bill brought forward to extend the period of the Act we shall be able to raise a question of this kind.
As far as I am concerned, I am glad to give that assurance.
Amendment negatived.
I beg to move, at the end of the Clause, to add the following new Sub-section:
"(2) If the Board of Trade are satisfied that any scheme so approved secures an adequate supply to the home market of any articles or classes of articles to which the principal Act is applied, the Board of Trade may by Order exempt producers who comply with the scheme from any general investigation under Section One, Sub-section (1) ( a ), of the principal Act in respect of those articles or classes of articles and any articles of a similar description."
You find, for example, in connection with, let us say, the woollen trade that at the present time there is a great demand for very high-class worsted goods which are bought only and can be bought only by people who have got a considerable amount of money to spend. They want a luxury article. It is provided for them and they get it at the price the manufacturer asks. It is not the intention of the Profiteering Act to defend or protect a man who is in that position. What you really want is to make articles of common use available for the mass of the people at reasonable prices. That is the intention of the Act. Accordingly, while articles of clothing necessarily come under the Act there is no reason at all why these high-class luxury articles should not be provided for the people who desire them at high prices and who are prepared to pay for them. On the other hand, we want to induce people to come into a scheme which will enable them to give, say, a suit of clothes to the mass of the people at a reasonable rate of profit and at a reasonable price. Let me give an illustration of what this Sub-section would do. It would enable, or perhaps would induce, the woollen and worsted trades to present to us a scheme by which they would give a suit of clothes tested as to quality, as to cost and as to price by experts, and to put that upon the market at a price which the Board of Trade would endorse as reasonable for those goods and suitable for the great mass of our citizens. At the same time, while we endorsed such a scheme as that, it would enable us to exempt from general investigation, for example, the goods of the dear and expensive class. On the one hand, as it seems to me, you have got -in the terms of this Sub-section an inducement to offer to a trade to give you a class of article that the mass of the people require and at the same time to make exemptions from general investigation under the original and principal Act which would in no way be a benefit to the country. I have given the illustration of the woollen trade, but the same considerations apply to many other industries, and if we are to get these schemes to work it seems to me that this proposal will form an inducement to manufacturers to come forward with schemes.
It seems to me that all that is necessary to do is to add this Sub-section to Clause 1 and to change the title of the Bill from A Bill to amend and extend the duration of the Profiteering Act, 1919," to "A Bill to defeat the object of the Profiteering Act, 1919." What are we already proposing to do under Clause 1? The Act of 1919 came into being as the result of a great out burst of indignation in the country against profiteering, and to allay that indignation the Act gave authority to local authorities to establish profiteering committees, which committees have been conducting investigations, and there is not the slightest doubt that the existence and action of these committees have done a great deal to allay the unrest and discontent. After having put that power into the hands of the local authorities, we are proposing by Clause 1 of this Bill to take it back again, for that Clause enables the Board of Trade to encourage any number of persons to come before them with a scheme, and if they can secure the approval of the Board to that scheme and any local profiteering committee should take action upon any one of those articles, all that the people concerned need to do is to produce a certificate from the Board of Trade that their price has been approved, and the whole investigation is stopped, so that the effect of Clause 1 is to render the existence of the local profiteering committees practically useless. If, in addition to that, we add this Sub-section, we are not only withering up the powers of the local committees, but we are going to render useless the existence of the central committee, because this Sub-section gives the Board of Trade power to grant exemptions from investigations by the central committee. In justification of this Sub-section the President of the Board of Trade suggests that it is intended to operate only in the case of those articles which are luxury articles, and in respect of which we do not need to protect people from profiteering, but there is not a word in this Sub-section restricting it to luxury articles. As it stands it remains entirely with the Board of Trade to interpret it as they like. The right hon. Gentleman's argument is that if we grant the Board of Trade this power it will encourage people to produce schemes, but for what class of articles? He tells us he only wants to use this Subsection for luxury articles, and if that is the case what does he want schemes for in respect of those articles? If in regard to luxury articles we do not need to protect people from profiteering, why should those who produce them be put to the trouble and expense of producing schemes before the Board of Trade? I think the right hon. Gentleman must advance some better argument than he has done to induce us to accept this Sub-section.
A few of my friends and myself have been trying to do in a private way what the Government proposes to do in this Bill; that is to say, we have been trying how this suit of clothes I am wearing can be sold for 30s. without undue profiteering. We have got so far as this, that we find it pretty easy dealing with the wholesaler and the man who manufactures in a big way, but we cannot deal with the man who sells, the retailer, and naturally he has got a good deal of expenses in one way and another. I cannot understand whether this Clause affects only the manufacturer, or the manufacturer and the retailer. I asked a question half an hour ago and got no answer, and I ask again. I am here to watch this Bill on behalf of the Traders' Federations, and owing to the fact that this Bill has been so rushed between Committee stage and Report stage, I have been unable to put down Amendments on their behalf. If this Subsection is added to the Clause, does it mean that it is merely the manufacturer who is going to have a say as to whether the home market is supplied or not, or will the retailer have a chance as well? Both associations do business under present circumstances under a certain amount of suspicion, and I should like to have a little more light thrown on the question by the right hon. Gentleman
There are few measures in regard to which it is easier to raise prejudice and more difficult to get results than in connection with profiteering legislation, and I think the speech delivered by the hon. and gallant Member for Newcastle (Major Barnes) was a characteristic example of the first. It is surely elementary, now that we have had a year's experience of the working of the Profiteering Act, and even those who were keen advocates of its promotion, as I was, see that the only possible chance of getting results is by getting schemes of the kind proposed by the right hon. Gentleman agreed to. It is suggested that this Sub-clause is going to take away from the tribunals all their powers, but that is pure misrepresentation. What is the position in which those tribunals have found themselves over and over again? It is this. They say, "It is perfectly useless for us to go on hearing these cases as to whether a retailed. has charged 6d. or 3d. too much. We really want to get goods sold to the retailers by the manufacturers at a reasonable price." You have had long inquiries into the manufacturing processes, and reports have been published, and in many cases, unfortunately, they appear to have been singularly inaccurate. That raises a great deal of prejudice and indignation. I am not surprised that many of the reports have been inaccurate, considering the speed with which they have been brought out. What we want is not inaccurate reports to create prejudice, but to get articles of common consumption at a reasonable price, and the only way to do it is by giving the President of the Board of Trade power to make arrangements of this kind with associations in order that essential articles may be produced at a reasonable price. The hon. and gallant Member for Newcastle, in attacking this Sub-section, can hardly, I think, have read it. As I understand it, the President is not going; to use his power to let industries burke inquiry unless he is satisfied that they produce schemes which will supply the market for home consumption at a reasonable rate. Therefore, before they are released from the obligation put upon them by the principal Act, they have as a condition precedent to establish the fact that they are going to supply the home market at a reasonable price, and therefore we get the one thing for which this legislation is introduced, and we get it by agreement, which is far better than getting it in any other way. I trust we shall hear no further arguments of that prejudicial kind.
I have been sometimes very astonished in the short time I have been in the House, but I think the speech of the President of the Board of Trade in introducing this Sub-section was the most astonishing performance I have ever listened to. Anything more in the nature of naked class legislation I have never heard anywhere, either inside or outside this House. Apparently as long as these great combines and trusts can throw on the market a certain number of shoddy articles, good enough for poor people—because that is what it comes to—then they are to be exempt and can do what they like. Now let me tell the right hon. Gentleman here and now and right away. I am younger than he is, and I think I have travelled more. [HON. MEMBERS: "No."] The right hon. Gentleman is a very distinguished lawyer, and I think he must have remained a good deal of his time, therefore, in one place, but I have always been travelling. I think I am more in touch with democratic sentiment in the country, and I want to tell him this, that the people of this country are not going to be put Goff with cheap and nasty goods. They want goods not too dear, but they also want soundly manufactured and soundly made goods. In the case of food, it must be wholesome, and they object to having one lot of articles or food for ordinary consumption for what are called the working classes and another lot for the upper classes. That is what is going to happen if this Sub-section is added. I read the Sub-section with great interest when I saw it on the paper this afternoon, and I could not really see what was at the back of it, until I heard the right hon. Gentleman's remark. When I read about the home market, I thought it was a scheme to make certain that sufficient supplies were ensured for the home market, but apparently it is not that. I think it is put in to meet cases like that of Messrs. Coats. Messrs. Coats have declared—I am making no charge against them, because their case is still sub judice —that their great profits are made out of the export trade.
7.0 P.M.
Are you going to leave these firms free from investigation as long as they will supply one line of their particular goods, which can be put into the windows as window-dressing? Then they can say, "Look at this cheap line of cotton "—I am taking the case of Messrs. Coats' for example, as it is easier—" we are producing this cheap line of sewing cotton for people who need sewing cotton, and therefore we are exempt." In practice we shall never be able to buy that cotton. The shops will always be out of stock, and it will disappear. The firm will be able to prove, and to employ the best legal opinion in the country to do so, that they have offered this line of goods to the retailers; but in practice either the margin of profit will be so small, or the brand will be so unpopular in a certain way, that you will never get it. I admire the subtlety of this Amendment. It is extremely clever. As the hon. and gallant Member for Newcastle most justly said, in spite of the stricture which was passed upon him from the other side of the House, it is simply a scheme to nullify the results of the first Profiteering Act when it is beginning to be made clear now that the way to stop profiteering is not, as was suggested in the first Act, but by hitting at these great rings and combines and by getting at the source of trouble, the producer.
If this policy of putting certain lines on the market, particularly for the working classes, is a failure, then you invite another equally immoral and objectionable practice. You invite a bribe. You invite the production of a certain article, which only a certain class of, persons want, at a cheap rate. For example, you put a certain sort of boots, such as is used particularly by manual labourers, on the market, and you think you can bribe the manual labourers not to kick up a fuss if you sweat the underpaid clerks and workers and working women on their boots. If you do that you will be exempting from investigation a great bootmaking combine and trust. This Amendment appears to me to be simply inviting the formation of more and more trusts and combines which, when they are formed, will be protected from investigation and from proceedings against them for battening on the public by overcharging for their goods. An hon. and gallant Gentleman interrupted me earlier in the afternoon when I was speaking on another Amendment, to say that we, on this side of the House, were raising suspicion. Nothing of the sort. The suspicion in the country owing to the present high prices is not of our raising at all. This suspicion and ill-feeling is quite spontaneous. Nothing we can do or say will affect the suspicion one way or the other.
Well, try it.
The President of the Board of Trade said the cause of high prices was scarcity. Scarcity gives an opportunity to the profiteer, but that does not mean that because there is no scarcity there is no profiteering. I speak a good deal in the country and I touch on profiteering—
I would ask the hon. and gallant Member to come back to the subject.
I quite bow to your ruling. When I speak of high prices I do not alone attack these trusts, although I think this legislation is protecting them. My speciality is the trusts. The trusts get every opportunity to-day, and are able to make these abnormal prices because of blunders in our foreign policy. I try to raise as much suspicion as I can against the Government on these lines.
The hon. and gallant Member really must attempt to deal in a business-like way with each Amendment as it comes along.
I again apologise. Perhaps my surprise and indignation at the procedure proposed by this Amendment led me away. I hope those who sit on these benches are not going to allow this Amendment to be passed without some protest. It seems harmless at first sight, but the more one looks into it, the more obnoxious it appears. That is a very good explanation why this legislation is being rushed through in this extraordinary way, and I hope we shall be able to divide against the Amendment.
I am opposed to this Amendment because it is simply giving legality to what we hold to be somewhat immoral. The President of the Board of Trade referred to cloth. People can get cheap and nasty stuff at the present time without the help of the President of the Board of Trade or the Profiteering Act. I understand that a low standard of material—an average standard, as the right hon. Gentleman thinks it, but we know it to be a low standard—will be set down at average prices, and after that some of the luxury articles will be totally beyond the reach of the masses of the people. That is the situation that holds at present. I do not know, for instance, what will happen in the case of the points raised by the hon. and gallant Member (Colonel Newman). It may be a good material, it may be cheap, because there is not a run upon it at the present time. Let the average citizen follow in the steps of the hon. and gallant Member, however, and it may be that this fair average kind of material will rush up in price. Supposing we were all to go into that line, what would be the position of the Board of Trade? Would they place it as above the normal standard of an article upon which the maximum price should be paid? All the appeals to us from hon. Gentlemen on the other side of the House to show confidence and trust are rather beside the mark. Some of us wish we had not so much experience, which sometimes makes us suspicious even when ultimately, there is no need for it. I ask hon. Members on the other side of the House, who so often appeal to those on this side to be trustful, to set a good example of the faith that they hold on the next occasion that Trade Union Ballot Bill comes along, and to trust our people instead of prying secretly into their affairs. I do not always accept everything the hon. and gallant Member for Central Hull says, but on this occasion he is absolutely right. This is class legislation, and it will have no other meaning to the bulk of the people in this country. I appeal to the President of the Board of Trade, if he wants to make this Act workable, to leave this Amendment out and to let us at least get some consolation from this Act as against the other one. Otherwise we shall be compelled to vote against this proposal if it goes to a Division.
I am afraid my hon. Friend above the Gangway has not really read the Amendment which the President of the Board of Trade is proposing. It says:
"If the Board of Trade are satisfied that any scheme so approved secures an adequate supply—"
May I ask the hon. Member to bear in mind what the President of the Board of Trade said in interpreting this Amendment?
I bear in mind very well what he said, and I say that this Amendment, as he proposed it, exactly counters the arguments which have been advanced by the hon. Member and also by the hon. and gallant Member for Central Hull. We are told that this is naked class legislation and that it is intended to foist on the poor classes of the community cheap and nasty goods. Is my hon. and gallant Friend (Colonel Newman) one of the poorer classes of the community who has had foisted on him a 30s. suit? As a matter of fact, one of the Ministers, who is now in a Committee upstairs, confided to me that he himself was wearing a four-guinea suit, and that he liked it very much. it is quite feasible and possible that an association may go to the President of the Board of Trade and say to him, "Under this Sub-section, if we show you that we are going to supply an adequate set of commodities for the general community at prices you regard as entirely reasonable, we shall ask you not to pry into our business to such an extent as to preclude us from obtaining such a price from other sections of the community as wish to pay it." It is all based on the contract to give an adequate supply, and looking at it in that light the objections that have been raised to this Amendment fall to the ground. I hope the Amendment will be carried.
I have risen because of my astonishment at the presentation of this new Amendment. If the President of the Board of Trade gives further consideration to it, he will see, as on a former occasion this afternoon, that it has absolutely no utility so far as it deals with profiteering. This proposal will not touch profiteering to any degree whatever. Yet the fundamental aim of this Bill is to arrest the progress of profiteering. Unlike my hon. and gallant Friend (Lieut.-Commander Kenworthy), who suggested that we might get cheap goods, I cannot see any possibility, by the enactment of this Amendment, of getting any cheap goods, although we may get nasty goods. We have been given to understand that the cause of high prices is world shortage This proposal will give a premium to employers to stock the markets. Therefore it will be seen that, instead of it being the working people who are holding back their labour, this Amendment is really an imputation that trusts and combines are cornering the markets and withholding goods that might have been put forward. They will be induced to put forward certain goods, and because they give an adequate supply they will not be interfered with by the Bill. Let us assume that through the advancement of science and the introduction of machinery into works output is stimulated. By the introduction of machinery it is possible substantially to increase the output of clothes, boots, or any other commodity, and by the introduction of these economic methods it is possible to dispense with large numbers of technical and highly-paid men, and in their place employ boys or girls who can manipulate the machines and substantially add to the output. The nation ought to have the advantage, we contend, of that substantial increase of output. Many other changes have taken place and are possible in certain trades of which we know. We believe it is possible to open certain areas that have been closed, and thus prevented a supply of the commodities which are required in this country.
The hon. Member is altogether too general. I am not quite sure whether he is referring to the Bill as a whole or to Clause 1 as a, whole. Neither of those subjects is before us now. It is only an Amendment to Clause 1 that we are considering.
I am dealing with the Amendment of the President of the Board of Trade. We know to-day there is an abundance of boots and clothes, but, because of the profiteering, the working people cannot purchase them. We hope, by the introduction of this Bill, the President of the Board of Trade will try to introduce measures which will prevent the wholesaler, the retailer, the trusts and the combines from bleeding the community white. I hope the right hon. Gentleman will see his way clear to withdraw this Clause, and put in something which will tend to cheapen production and bring commodities within the purchasing power of the average man and woman.
May I point out to some of the hon. Members opposite one thing which is likely to result from this Amendment if it is carried, and illustrate it by something which actually has happened recently? The object of this is to provide, not necessarily a sufficient supply of something cheap and nasty, but a sufficient supply of what is fit for any person who wants to be reasonably economical, and, perhaps, on the other hand, to allow the person who supplies that demand to make what he can out of the extravagant person who goes in for luxuries. That is all to the advantage of those, of whom I am one, who want to economise as much as possible. I will take a case, of which I knew, under the existing Profiteering Act, as an illustration of what should be avoided under this Amendment. A firm were both manufacturers and retailers of an article which was sold in many grades. It was not boots, but let us say for the sake of argument it was. They made very large quantities of the more expensive and more luxurious type of article, which was a very large part of their trade. Complaint was made against them of profiteering on these expensive goods, and they were ordered to reduce their price. What was the result? They immediately looked into their business, and found that they were at that time selling the cheapest class of their goods—and nothing they sold was anything but sound and high class; it was only less luxurious—they found on the cheapest type of goods they were selling, they were making practically no profit at all. The result was that they were obliged to re- duce their charge to the rich on articles of luxury, and increase their price on the articles purchased by the ordinary economical person who wanted to get the best he could for his money. So far as I can see, the object of this Sub-section, and what is likely to be the result of it, is that big manufacturers will turn out something with which the reasonable man will be satisfied, and can get at a reasonable price, and which he will get at a reasonable price to a great extent at the expense of those people who do not care how much they pay for an expensive article which meets their fancy.
I think we shall be on the safe side if we take this Sub-section as it is printed, and not according to the interpretation of the right hon. Gentleman opposite, because, unfortunately, we cannot put this interpretation on paper. If the Clause could be explained away quite as simply as the hon. Member thinks, I believe we could accept it without demur. But, so far as we can understand the interpretation of this Clause, it opens a door which is exceedingly dangerous from the point of view of the rank and file of our industrial population. The first two or three lines are quite harmless. It provides that if any organisation of traders produce a scheme, and that scheme is satisfactory, it is approved by the Board of Trade. If, however, they secure an adequate supply of goods for the home market, their transactions shall be free from any interference and investigation on the part of the Department. The scheme that has been accepted and ratified by the Board of Trade provides for a supply of articles of a certain quality at a certain price; but as soon as that has been secured, and the concerns are clear of further investigation, there is no reason in the world why they should not alter the character of their product if they care to do so, and, while the price may remain intact, the people will be getting a considerably worse article, on account of an alteration in the product.
I think the right hon. Gentleman has a tendency to stick too rigidly to the application of the economic law. There are people who are as close students of the economic law on" this side of the House as in any other quarter of this Assembly and we believe, as a result of that study and investigation, chat artificial methods are at present exercising an effect upon the interpretation on the economic law in these matters. The trust, ring, and syndicate in these days are snapping their fingers at economic law and moral principle, and the hon. Gentleman himself a moment ago fell into an obvious fallacy. He declared that the cause of high prices was scarcity. I submit that that cannot be established in these days, and I will give two illustrations. There was never so much wool in this country as there has been during the last two years, and the price of clothing was never so high. I will give an illustration which may appeal to our hon. Friends opposite. There never was so much champagne brought into the country in one year as there was last year. Our Friends opposite will be able to tell us whether the commodity was any cheaper or not. In these days I would suggest that it is not wise to stick too rigidly to the application of economic law. We are living in exceptional circumstances under artificial conditions, which are flouting both economic laws and moral principles all along the lines, and you cannot justify the particular Sub-section, because while it protects the price, it does not adequately protect the community from the point of view of the quality of goods supplied.
I cannot help thinking that if this Sub-section is added to the Bill, a great part of the protection to the consumer will be withdrawn. Under this Sub-section, the President is enabled, by Order, to exempt people who comply with its provisions. But the Order having been made, is made once and for all. There is no power to revise or withdraw the Order, and only a few minutes ago the right hon. Gentleman refused to accept an Amendment which gave him power to revise the Order. Consequently, the very conditions might arise which my hon. and gallant Friend the Member for Hull (Lieut.-Commander Kenworthy) pointed out just now. It would be possible for the firms in question first of all to satisfy the President that there was an adequate supply pro- vided, and, having obtained the Order, it would be quite possible for them not to keep up the adequate supply, and the consumer would have no protection. I hope, therefore, the right hon. Gentleman will either withdraw this Amendment, or at least modify it in the particular direction I have indicated, namely, that he shall have the power to withdraw his Order if the necessity arises.
I wish to call attention to what I consider a fallacy in the argument of several hon. Members who have spoken. I think that by the proposed Amendment ample protection is afforded to the consumer against any abuse. All hon. Members who have spoken have omitted to go back to the Section as it stands, where it states, "submit to the Board of Trade a scheme limiting the profit." Surely the Board of Trade, when they approve the scheme, will make in that scheme provision for limiting profit, and if the limitation of profit is secured by way of a percentage on profit, surely that will amply protect the consumer against any possible abuse in the future. I, therefore, think a great deal has been said which is entirely irrelevant.
I am afraid I did not hear the speech of the President of the Board of Trade, but that was not due to any fault of mine. We understand that this Amendment applies to luxuries, but there is no mention of luxuries here.
It is the other way about.
It applies to articles described in the principal Act. The second point that I desire to put is that the investigation at the centre from which these people are exempt by this Amendment, affects largely wholesale prices. Let us, therefore, take the effect upon the retail prices. The retailers may form a society and say: "We will submit a scheme to the Board of Trade for fixing certain prices which we consider reasonable: they are based upon the prices which we pay to the wholesaler." The prices are there, governed by the fact that the Board of Trade may lay an embargo on imports, and governed by the fact that for a period the Government proposes to derive from imports—
It is a Profiteering (Amendment) Bill that is before the House. The hon. and gallant Gentleman is wide of the mark, and is talking outside the scope of the Amendment.
I will not pursue that aspect if it is wide of the mark. I only wish to consider the effects in regard to prices. This investigation into wholesale prices may be extremely necessary in order to enable the people to judge whether the prices submitted by the Association of Retailers are reasonable. The President has made his point; that this only applies to luxury articles. Then why should it be necessary at all?
The hon. and gallant Gentleman is putting the matter the wrong way round.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 192; Noes, 47.
Division No. 110.] AYES. [7.35 p.m. Adair, Rear-Admiral Thomas B. S. Burn, Col. C. R. (Devon, Torquay) Edge, Captain William Addison, Rt. Hon. Dr. C. Burn, T. H. (Belfast, St. Anne's) Edwards, Major J. (Aberavon) Agg-Gardner, Sir James Tynte Butcher, Sir John George Edwards, John H. (Glam., Neath) Archer-Shee, Lieut.-Colonel Martin Campbell, J. D. G. Elliot, Capt. Walter E. (Lanark) Atkey, A. R. Carson, Rt. Hon. Sir Edward H. Eyres-Monsell, Commander B. M. Baird, John Lawrence Casey, T. W. Falcon, Captain Michael Balfour, George (Hampstead) Coates, Major Sir Edward F. Farquharson, Major A. C. Balfour, Sir R. (Glasgow, Partick) Cockerill, Lieut.-Colonel G. K. Ford, Patrick Johnston Barnes, Rt. Hon. G. (Glas., Gorbals) Cohen, Major J. Brunel Foreman, Henry Barnett, Major R. W. Colfox, Major Wm. Phillips Foxcroft, Captain Charles Talbot Barnston, Major Harry Conway, Sir W. Martin Fraser, Major Sir Keith Beauchamp, Sir Edward Coote, William (Tyrone, South) Fremantle, Lieut.-Colonel Francis E. Beckett, Hon. Gervase Cory, Sir J. H. (Cardiff, South) Ganzoni, Captain Francis John C. Bell, Lieut.-Col. W. C. H. (Devizes) Courthope, Major George L. Gilbert, James Daniel Benn, Com. Ian H. (Greenwich) Cowan, D. M. (Scottish Universities) Gilmour, Lieut.-Colonel John Bigland, Alfred Craig, Colonel Sir J. (Down, Mid) Goff, Sir R. Park Blades, Capt. Sir George Rowland Cralk, Rt. Hon. Sir Henry Greene, Lieut.-Col. W. (Hackney, N.) Blair, Major Reginald Davidson, Major-General Sir J. H. Greenwood, William (Stockport) Boscawen, Rt. Hon. Sir A. Griffith- Davies, Major D. (Montgomery) Gregory, Holman Bowles, Colonel H. F. Davies, Sir Joseph (Chester, Crewe) Greig, Colonel James William Breese, Major Charles E. Davies, Thomas (Cirencester) Guinness, Lieut.-Col. Hon. W. E. Bridgeman, William Clive Denniss, Edmund R. B. (Oldham) Hacking, Captain Douglas H. Brown, T. W. (Down, North) Dewhurst, Lieut.-Commander Harry Hall, Lieut.-Col. Sir F. (Dulwich) Bruton, Sir James Donald, Thompson Hambro, Captain Angus Valdemar Buckley, Lieut.-Colonel A. Doyle, N. Grattan Hanna. George Boyle Bull, Rt. Hon. Sir William James Edgar, Clifford B. Hanson, Sir Charles Augustin Harmsworth, Hon. E. C. (Kent) M'Guffin, Samuel Rees, Capt. J. Tudor (Barnstaple) Haslam, Lewis McLaren, Hon. H. D. (Leicester) Richardson, Alexander (Gravesend) Henderson, Major V. L. (Tradeston) McLaren, Robert (Lanark, Northern) Roberts, Rt. Hon. G. H. (Norwich) Hennessy, Major J. R. G. Macleod, J. Mackintosh Rodger, A. K. Henry, Denis S. (Londonderry, S.) M'micking, Major Gilbert Roundell, Colonel R. F. Herbert, Dennis (Hertford, Watford) McNeill, Ronald (Kent, Canterbury) Rutherford, Sir W. W. (Edge Hill) Hewart, Rt. Hon. Sir Gordon Macguisten, F. A. Samuel, Samuel (W'dsworth, Putney) Hllder, Lieut.-Colonel Frank Mallalieu, F. W. Sanders, Colonel Sir Robert A. Hinds, John Marks, Sir George Croydon Seely, Major-General Rt. Hon. John Hohler, Gerald Fitzroy Marriott, John Arthur Ransome Shortt, Rt. Hon. E. (N'castie-on-T.) Hope, H. (Stirling & Cl'ckm'nn'n'W.) Martin, Captain A. E. Simm, M. T. Hope, James F. (Sheffield, Central) Middlebrook, Sir William Smith, Harold (Warrington) Hope, Lt.-Col. Sir J. A. (Midlothian) Mitchell, William Lane Stanley, Major H. G. (Preston) Hopkins, John W. W. Moles, Thomas Stanton, Charles B. Horne, Sir R. S. (Glasgow, Hillhead) Mond, Rt. Hon. Sir Alfred M. Steel, Major S. Strang Hotchkin, Captain Stafford Vere Montagu, Rt. Hon. E. S. Stewart, Gershom Hudson, R. M. Morrison, Hugh Sturrock, J. Leng Hunter-Weston, Lieut.-Gen. Sir A. G. Munro, Rt. Hon. Robert Sugden, W. H. Hurd, Percy A. Murray, Lt.-Col. Hon. A. (Aberdeen) Sutherland, Sir William Hurst, Lieut.-Colonel Gerald B. Murray, Major William (Dumfries) Sykes, Colonel Sir A. J. (Knutsford) Inskip, Thomas Walker H. Nall, Major Joseph Taylor, J. Jesson, C. Neal, Arthur Thomson, F. C. (Aberdeen, South) Jodrell, Neville Paul Nicholson, Reginald (Doncaster) Thomson, Sir W. Mitchell- (Maryhill) Johnstone, Joseph Nield, Sir Herbert Wallace, J. Jones, J. T. (Carmarthen, Llanelly) Oman, Charles William C. Walton, J. (York, W. R., Don Valley) Jones, William Kennedy (Hornsey) Ormsby-Gore, Captain Hon. W. Wheler, Lieut.-Colonel C. H. Joynson-Hicks, Sir William Parker, James White, Lieut.-Col. G. D. (Southport) Kidd, James Parkinson, Albert L. (Blackpool) Whitla, Sir William Knights, Capt. H. N. (C'berwell, N.) Parry, Lieut.-Colonel Thomas Henry Williams, Lt.-Com. C. (Tavistock) Lane-Fox, G. R. Peel, Col. Hn. S. (Uxbridge, Mddx.) Williams, Lt.-Col. Sir R. (Banbury) Law, Rt. Hon. A. B. (Glasgow, C.) Perkins, Walter Frank Willoughby, Lieut.-Col. Hon. Claud Lewis, Rt. Hon. J. H. (Univ., Wales) Perring, William George Wilson, Daniel M. (Down, West) Lindsay, William Arthur Pinkham, Lieut.-Colonel Charles Wood, Sir H. K. (Woolwich, West) Lloyd-Greame, Major Sir P. Pollock, Sir Ernest M. Worsfold, Dr. T. Cato Lort-Williams, J. Pratt, John William Worthington-Evans, Rt. Hon. Sir L. Loseby, Captain C. E. Pulley, Charles Thornton Young, W. (Perth & Kinross. Perth) Lyle, C. E. Leonard Purchase, H. G. Lynn, R.J. Ramsden, G. T. TELLERS FOR THE AYES.— M'Donald, Dr. Bouverie F. P. Ratcliffe, Henry Butler Lord E. Talbot and Mr. Dudley Ward.
NOES. Benn, Captain Wedgwood (Leith) Hayday, Arthur Royce, William Stapleton Brace, Rt. Hon. William Hayward, Major Evan Sitch, Charles H. Bromfield, William Hirst, G. H. Swan, J. E. Brown, James (Ayr and Bute) Hogge, James Myles Thomas, Brig.-Gen. Sir O (Anglesey) Cape, Thomas Kenworthy, Lieut.-Commander J. M. Thorne, G. R. (Wolverhampton, E.) Carter, W. (Nottingham, Mansfield) Lawson, John J. Thorne, W. (West Ham, Plaistow) Davison, J. E. (Smethwick) Lunn, William Walsh, Stephen (Lancaster, Ince) Dawes, Commander Maclean, Nell (Glasgow, Govan) White, Charles F. (Derby, Western) Edwards, C. (Monmouth, Bedweilty) Myers, Thomas Wignall, James Entwistle, Major C F. Newbould, Alfred Ernest Williams, Aneurin (Durham, Consett) Finney, Samuel O'Grady, Captain James Williams, Col. P. (Middlesbrough, E.) Galbraith, Samuel Palmer, Charles Frederick (Wrekin) Wilson, W. Tyson (Westhoughton) Glanville, Harold James Parkinson, John Allen (Wigan) Wood, Major M. M. (Aberdeen, C.) Graham, D. M. (Lanark, Hamilton) Raffan, Peter Wilson Young, Robert (Lancaster, Newton) Grundy, T. W. Richardson, R. (Houghton-le-Spring) Guest, J. (York, W. R., Hemsworth) Robertson, John TELLERS FOR THE NOES.— Major Barnes and Dr. Murray
CLAUSE 2.—(Amendments of Section 1 of principal Act.)
"(1) Section One of the principal Act shall extend to hire purchase transactions and to the letting on hire of articles and offering to let articles on hire in like manner as it applies to the sale and offering for sale of articles, and the expressions sale,' seller 'and price' shall be construed accordingly.
(2) The Board of Trade may, by Order, extend Section One of the principal Act to any process of manufacture, or the repairing, altering, dyeing, cleaning, washing, or otherwise treating of any articles mentioned in the Order and processes incidental thereto, or after consultation with the Minister of Transport to any form of road transport, subject to such modification as may be necessary to adapt the provisions of that Section thereto.
(3) For the proviso to Sub-section (2) of Section One of the principal Act, the following proviso shall be substituted:—
Provided that the profit sought or obtained shall not for the purposes of this Section be deemed to be unreasonable—
( a ) in the case of a seller who was in the same way of business before the War, if the rate of net profit sought or obtained does not exceed the rate of net profit obtained by him upon the sale of similar articles under pre-War conditions; and
( b ) in the case of a seller who was not in the same way of business before the War, if the rate of net profit sought or obtained by him does not exceed the average rate of net profit obtained by sellers in that way of business in the same
The said proviso shall not apply in any case where the profit in respect of any transaction has been fixed by a scheme approved by the Board of Trade under this Act.
(4) Notwithstanding anything in any other Act, a prosecution for an offence under Sub-section (2) of Section One of the principal Act may be instituted at any time within one year after the commission of the offence, except where the Act constituting the offence is a sale by retail."
I beg to move, in Sub-section (1) after the word "to", ["principal Act shall extend to "] to insert the words, "any service in connection with the delivery of an article and to." The object of this Amendment is to prevent those people who transmit an article from the seller to the buyer from imposing an extortionate amount for the service rendered. The right hon. Gentleman in charge of the Amending Bill has, I believe, accepted the principle of this Amendment in regard to motor transport. We are very anxious to know why he cannot extend it to other forms of services rendered. There are three classic instances that I can give to the House where people are imposed upon in this matter. First of all, there is the service rendered to the customers in restaurants where the service given can be charged at any rate to the consumer, and nothing either in the principal Act or this Amending Bill, prevents that profiteering. The second example is that of a man who has been sufficiently fortunate during the War to be engaged in the production of munitions, and who has purchased out of his earnings, probably three or four of the pianos of which we heard so much during the War. The services rendered in the conveyance of those pianos to the man at home may be greater than the value of the pianos themselves. The third instance is that of services similar to that rendered by the hon. and gallant Gentleman behind me (Lieut.-Commander Kenworthy) in which he seemed to take extreme pride, in going round the country and imparting the result of his esoteric cogitations upon subjects with which he had become very familiar.
I beg to second the Amendment.
My right hon. Friend has already in Committee upstairs explained the reasons why he was unable to accept this Amendment. He pointed out that so far as road transport went he had gone as far as possible in an Amendment of his own which now appears in the Bill. My right hon. Friend has already pointed out that it would require a mass of legislation to properly deal with this subject. For these reasons, which were not combated in Committee, I think it is clear that we cannot accept this proposal.
What action is being taken with regard to the cartage of goods under private enterprise, quite apart from any motor transit provision?
That point is met by Sub-section (2), which says, "and processes incidental thereto, or after consultation with the Minister of Transport to any form of road transport."
I do not want to say anything particular about the merits of this Amendment, but I would not like the remarks made about myself to go into the OFFICIAL REPORT without some reply. It is quite true that I do a great deal of speaking about the country, and I am very proud of it.
This is not a place for advertisement.
Am I not to be allowed to make a personal explanation?
No, the subject is quite irrelevant.
Amendment negatived.
I beg to move, in Subsection (1) after the word "hire" ["articles on hire "] to insert the words "and the letting and selling of dwelling-houses."
This Bill, as it stands now, extends the principal Act, which was an Act dealing with the sale of commodities in hire purchase transactions, the letting on hire of articles, and offering to let articles on hire. Seeing that the Act is now being extended, I think it should go a little further and include the letting and selling of dwelling-houses. Nothing could be done to make the Act more popular, and our desire is to make it more popular in the country. It certainly does seem an extraordinary thing that, in respect to a matter which has given the very greatest amount of annoyance, and caused great hardship to many people in the country, that is the transactions which are taking place, both in regard to the letting and selling of dwelling-houses, the Government should not seize this opportunity of amending the law upon this subject. I understand some provision of this kind is going to be made in the Rent Restriction Bill, and it may be that it is proposed to do something in this direction on that occasion. We are anxious not to let this opportunity pass for raising this question, because there is no certainty that anything will be done upon this matter when the Rent Restriction Bill is brought in. As we understand that there is to be no Autumn Session, we may not find time to deal with the Rent Restriction Bill, and therefore the Government might take advantage of this opportunity and extend the scope of this Bill so as to include those transactions.
It is not necessary for me to trouble the House with many instances of the extreme hardship which is being suffered by the very poorest class of the community with regard to this matter. It is perfectly true that the Rent Restriction Acts have provided against the raising of rents, but I think it is well within the knowledge of the Parliamentary Secretary that a great many ingenious evasions of the Act have taken place, and premiums and bonuses have been employed to evade the Act. I am informed that in many cases really very substantial amounts have been exacted in this manner, and very considerable hardship has been suffered. We are endeavouring in this measure to meet gross cases of profiteering, but, as far as my own experience goes, some of the very worst cases of profiteering, interpreting that term very widely, have occurred, in which large sums have been exacted which ought not to have been paid at all, and the very grossest cases are daily transpiring in regard to dwelling-houses. We do not say that the words of this Amendment are the very best that could be devised, and it is quite possible that the Parliamentary Secretary may be able to suggest better words. The whole course of this Debate has shown that in some rather important respects the Government have been willing to amend this measure, whilst in other respects they have refused to do so. I think, however, that this is a matter upon which there will be general agreement, and if anything can be done to remedy these hardships it should be done as speedily as possible. Therefore I hope the Parliamentary Secretary will be able to accept this Amendment. We are not particularly attached to this form of words, but we are attached to some method of dealing with this grievance.
I beg to second the Amendment. I hope we are not going to be told that it is unnecessary because of the Rent Restriction Act, which I understand it is very likely may be dropped. At any rate it may be some time before it is brought in and a longer time before it is passed, because it has to pass another place where the landlord interest is naturally very strong. Under these circumstances I think we now have a chance of putting into the Bill some remedy and relief for the house-hunting public. In any case, even if the Rent Restriction Act is as wonderful and efficacious as most of the Government measures we have seen in this Parliament, it would be just as well to have a second string to the public's bow. If the Rent Restriction Act applies to the letting and selling of houses and flats, then there will be no need for this part of the Bill to be put into operation, but if we put it into the Bill now it will be an extra safeguard.
At sea we used to be taught that if we thought one anchor would hold the ship we should put down a second for safety. The art of true seamanship is never to take risks, and I commend this to the Government. If we can do anything to prevent people being charged enormous rents for the houses they occupy or buy, the paying of key-money and bonuses, I think it is the duty of this House to do it in the interests of everybody. On this side of the House we made a demand to insert dwelling houses in the original Bill, but it was resisted by the Government for no very clear reasons, the principal one being that we were told that the Bill referred only to small retail articles of food and clothing, and the like, and that houses were not intended to be covered in any way by the Bill. Since then the whole scope of the Bill has been widened and enlarged. The mover of this Amendment has already pointed out that it now applies to hire purchase transactions and the letting on hire of vehicles. It may be necessary if things get much worse to hire vehicles to sleep in. Even now people are actually living in tents in one district in Wales, and I think they would be much more comfortable in vehicles. If you are going to apply this relief to the hire of vehicles in which you may be forced to live, to say that you are not to be allowed to apply the same relief to the letting and selling of houses for which you are overcharged is to me quite indefensible. I hope the Government will accept this Amendment and by doing so they will earn a debt of gratitude on the part of thousands, and thousands of people in the country who will be very grateful to them. I am sure if the hon. Member, when replying for the Board of Trade, can meet us on this point his name will be remembered with great happiness by many poor people who are now having to pay through the nose very unjustly for houses.
8.0 P.M.
The versatility of my hon. and gallant Friend who has just spoken is very well known and is of long standing, and we must all admire the wonderful way in which my hon. and gallant Friend can turn on to the discussion of any subject which comes before this House. Here, however, I think he is lamentably at sea. The law has always been from time immemorial that the real property and personal property were totally distinct, and when you are dealing with the law of selling property, whether leasehold or freehold, you are dealing with a totally different class of law, and for this reason I submit that this proposal is hopelessly outside the scope of the Bill. The original Act was confined to articles. The Amendments of the Government, so far as they have proposed Amendments here, are still confined to articles of personal property. There is nothing in relation to a house that is personal property. A lease-hold interest, as we lawyers know, is called a chattel personal, but it is in the nature of realty, and is never governed by the same law. The suggestions of the Government in regard to the hire purchase system and other matters of that sort are all in connection with chattels which are outside the scope of real property. Therefore, much as one sym- pathises with the condition of things which, as my hon and gallant Friend says, prevails in South Wales, I venture to think that this Amendment will not remedy it, but will make confusion worse confounded. We have already had two Bills dealing with rent restriction, and are promised a third, and I can assure my hon. and gallant Friend that the administration of those Bills is quite sufficiently difficult for the inferior Tribunals who are charged with it, and that it would not do to add further complications by dealing with real property in a Bill which is intended to deal solely with personal property.
I need not say that the Government are fully alive to the great inconvenience that is caused and to the extortion that is practised in certain cases in connection with the letting of houses and tenements. I very much hope that those grievances will be dealt with, but I am going to resist this Amendment, as my hon. and gallant Friend anticipated, on the ground that it comes within the matters which are being dealt with by the Committee on the Rent Restriction Bill. I hope it will be dealt with in the Committee's recommendations and carried into law in that Bill. I certainly should be glad to be responsible for any Measure which carried into effect my hon. and gallant Friend's desire in that respect, but it is perfectly clear that it falls far more naturally within the scope of the Measure connected with the renting and letting of houses than within the scope of this Bill. I do not think his suggestion that we should have two anchors in case is a very hopeful suggestion. He gave as a reason that the other Bill, when it goes to another place, might be held up or amended to its detriment, because the landlords were so largely represented there. I do not think that kind of landlord is represented in that place, and therefore I have no such apprehension. I am sorry I cannot agree to the Amendment, although I entirely sympathise with its intention.
I entirely agree with what was said by the hon. and learned Member for Ealing (Sir H. Nield) with regard to the law, but the Bill, as it appears to me, does not deal only with prices of articles, but with many other matters. It deals with processes—pro- cesses of repairing, altering and dyeing. It deals with the transport of goods, which is surely not an article, but a service rendered; and it deals with hire. It does seem to me, as a layman, that there is an essential difference between this Measure and the Rent Restriction Act. The Parliamentary Secretary has pointed out that the Rent Restriction Bill will deal with the undoubted grievance against which this Amendment is directed, but there are differences. I understand that the Rent Restriction Bill will allow of an alteration in the rents by some general decision which will apply to all rents alike. The proposal of this Amendment is that rents should be decided by a local tribunal. The question we have to consider is whether the local authority or some central Government Department is the better judge whether a rent is fair or unfair. As far as that is concerned, I have an open mind, but I do not know that my hon. and gallant Friend has made out a case which satisfies me. The Parliamentary Secretary, however, has not dealt with the sale of houses. This Amendment aims at preventing profiteering in the selling of houses. The Rent Restriction Act, as far as I am aware, has not dealt with that, and therefore I think the Government should give us some clear answer on this point. If the hon. Gentleman says that that Act would prevent the charging of exorbitant prices for houses sold, I think there is something in his argument, but if the Government do not intend to deal with the matter of exorbitant prices for houses, I should certainly advise my hon. and gallant Friends to persist in their Amendment.
I should like to know from the Government whether the Rent Restriction Bill will deal, not only with exorbitant prices for the sale of houses, but with the iniquity of premiums and key-money. From a large experience and from a huge correspondence, I know that this presses very hardly, not only on the working classes, but on the ex-service man, who has returned to find it impossible to get housing accommodation. Ifs this matter is not dealt with in the Rent Restriction Bill, it is incumbent upon us to put that second anchor into this present Bill.
On account of my having changed my occupation from that of a checkweigher to that of a Member of Parliament, I have had the misfortune to go house-hunting, and I know something about it. In the case of one house, the original price of which I knew to be something less than £400, the exorbitant figure of £1,000 was asked of me, because they knew that I wanted a house. Again, I knew of two exactly similar houses for sale, one with vacant possession, and the other without possession. For the former, £950 was demanded, while for the latter only £450. Surely it is time some action was taken to prevent such extortion being practised on people who are compelled to seek houses. It is not only that poor people are victimised in this way, but labour is largely held up. People going from one place to another to do important work cannot afford to pay the money asked for houses, and consequently the nation is losing their work. The question of the sale of houses was left out of the last Rent Restriction Act; I do not know whether it is now going to be included.
It is as important to the worker that his rent and the house he lives in should be reasonable as his food and clothing. It all comes out of his earnings. I trust the hon. Gentleman will accept the Amendment, for it will confer a boon on many poor people who are to-day homeless and have to put up with what accommodation their friends can give them.
I should like the hon. Gentleman to say definitely whether or not the Rent Restrictions Bill will deal with this question of key money and the selling of houses. There are very few Profiteering Committees working to-day. They have very little to do, but if they have to deal with this question of premiums and key money and the exorbitant prices which are asked for houses you would find work for Profiteering Committees in every locality in the Kingdom. Perhaps one of the greatest abominations we have to-day is the demand for key money by people who have houses to let. No doubt every hon. Member could give innumerable instances of people who have been asked for £5, £10, £25 and up to £50 for a key, even in villages. I know cases where men have refused to have a house on principle because there was a demand for £5 for the key. I heard yesterday of a house that cost £400 to build that was sold last week for £1,650. I ask the hon. Gentleman for a definite answer so that we may know the question is really going to be dealt with.
The hon. Member must know how impossible it is to answer his question. I admit the great evil that exists and the hardship that is caused by it. I am not in the least aware what stage has been reached in the proposals of the Bill and still less can I say whether the Cabinet are going to approve of these proposals. It is quite impossible for me to say what is going to be in the Bill, which I do not suppose has yet been before the Cabinet. I do not even know whether it has.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 54; Noes, 148.
Division No. III.] AYES. [8.15 p.m. Benn, Captain Wedgwood (Leith) Hogge, James Myles Robertson, John Brace, Rt. Hon. William Holmes, J. Stanley Royce, William Stapleton Bromfield, William Johnstone, Joseph Sitch, Charles H. Brown, James (Ayr and Bute) Jones, G. W. H. (Stoke Newington) Stanton, Charles B. Cape, Thomas Kelly, Edward J. (Donegal, East) Swan, J. E. Carter, W. (Nottingham, Mansfield) Lawsan, John J. Thomas, Brig.-Gen. Sir O. (Anglesey) Davison, J. E. (Smethwick) Lunn, William Thorne, G. R. (Wolverhampton, E.) Dawes, Commander Maclean, Neil (Glasgow, Govan) Thorne, W. (West Ham, Plaistow) Edwards, C. (Monmouth, Bedwellty) Mallalieu, F. W. Wallace, J. Edwards, Major J. (Aberavon) Mills, John Edmund Walsh, Stephen (Lancaster, Ince) Finney, Samuel Myers, Thomas Walton, J. (York, W. R., Don Valley) Galbraith, Samuel Newbould, Alfred Ernest White, Charles F. (Derby, Western) Gilbert, James Daniel O'Grady, Captain James Wignall, James Graham, D. M. (Lanark, Hamilton) Palmer, Charles Frederick (Wrekin) Wilson, W. Tyson (Westhoughton) Grundy, T. W. Parkinson, John Allen (Wigan) Wood, Major M. M. (Aberdeen, C.) Guest, J. (York, W. R., Hemsworth) Parry, Lieut.-Colonel Thomas Henry Young, Robert (Lancaster, Newton) Hayday, Arthur Raffan, Peter Wilson Hayward, Major Evan Rees, Capt. J. Tudor- (Barnstaple) TELLERS FOR THE AYES.— Hirst, G. H. Richardson, R. (Houghton-le-Spring) Lieut.-Commander Kenworthy and Major Barnes.
NOES. Adair, Rear-Admiral Thomas B. S. Ganzonl, Captain Francis John C. McLaren, Robert (Lanark, Northern) Addison, Rt. Hon. Dr. C. Gibbs, Colonel George Abraham Macleod, J. Mackintosh Agg-Gardner, Sir James Tynte Gilmour, Lieut.-Colonel John M'Micking, Major Gilbert Atkey, A. R. Goff, Sir R. Park McNeill, Ronald (Kent, Canterbury) Baird, John Lawrence Greenwood, William (Stockport) Macguisten, F. A. Balfour, George (Hampstead) Gregory, Holman Manville, Edward Balfour, Sir R. (Glasgow, Partick) Greig, Colonel James William Marks, Sir George Croydon Barnes, Rt. Hon. G. (Glas., Gorbals) Hacking, Captain Douglas H. Martin, Captain A. E. Barnett, Major R. W. Hall, Lieut.-Col. Sir F. (Dulwich) Middlebrook, Sir William Bigland, Alfred Hambro, Captain Angus Valdemar Mitchell, William Lane Blair, Major Reginald Hanna, George Boyle Moles, Thomas Boscawen, Rt. Hon. Sir A. Griffith Harmsworth, C. B. (Bedford, Luton) Mond, Rt. Hon. Sir Alfred M. Bowles, Colonel H. F. Harmsworth, Hon. E. C. (Kent) Montagu, Rt. Hon. E. S. Breese, Major Charles E. Haslam, Lewis Moreing, Captain Algernon H. Bridgeman, William Clive Hennessy, Major J. R. G. Murray, Lt.-Col. Hon. A. (Aberdeen) Brown, T. W. (Down, North) Henry, Denis S. (Londonderry, S.) Murray, Major William (Dumfries) Bruton, Sir James Herbert, Denis (Hertford, Watford) Neal, Arthur Buckley, Lieut.-Colonel A. Hewart, Rt. Hon. Sir Gordon Nicholson, Reginald (Doncaster) Bull, Rt. Hon. Sir William James Hilder, Lieut.-Colonel Frank Nield, Sir Herbert Burn, Col. C. R. (Devon, Torquay) Hinds, John Oman, Charles William C. Campbell, J. D. G. Hohler, Gerald Fitzroy Parker, James Casey, T. W. Hope, H. (Stirling & Cl'ckm'nn'n, W.) Parkinson, Albert L. (Blackpool) Chadwick, R. Burton Hope, James F. (Sheffield, Central) Perkins, Walter Frank Cockerill, Lieut.-Colonel G. K. Hope, Lt.-Col. Sir J. A. (Midlothian) Perring, William George Cohen, Major J. Brunel Hopkinson, Austin (Mossley) Pinkham, Lieut.-Colonel Charles Conway, Sir W. Martin Horne, Sir R. S. (Glasgow, Hillhead) Pollock, Sir Ernest M. Coote, William (Tyrone, South) Hotchkin, Captain Stafford Verge Pratt, John William Courthope, Major George L. Hudson, R. M. Pulley, Charles Thornton Craig, Colonel Sir J. (Down, Mid) Hunter-Weston, Lieut.-Gen. Sir A. G. Purchase, H. G. Cralk, Rt. Hon. Sir Henry Hurd, Percy A. Ramsden, G. T. Davidson, Major-General Sir J. H. Hurst, Lieut.-Colonel Gerald B. Ratcliffe, Henry Butler Davies, Thomas (Cirencester) Inskip, Thomas Walker H. Richardson, Alexander (Gravesend) Denniss, Edmund R. B. (Oldham) Jesson, C. Roberts, Rt. Hon. G. H. (Norwich) Dewhurst, Lieut.-Commander Harry Jones, William Kennedy (Hornsey) Rodger, A. K. Dixon, Captain Herbert Joynson-Hicks, Sir William Rutherford, Sir W. W. (Edge Hill) Doyle. N. Grattan Kidd, James Sanders, Colonel Sir Robert A. Edge, Captain William Knights, Capt. H. N. (C'berwell, N.) Seely, Major-General Rt. Hon. John Edwards, John H. (Glam., Neath) Law, Rt. Hon. A. B. (Glasgow, C.) Shortt, Rt. Hon. E. (N'castle-on.T.) Eyres-Monsell, Commander B. M. Lewis, Rt. Hon. J. H. (Univ., Wales) Smith, Harold (Warrington) Farquharson, Major A. C. Lort-Williams, J. Stanley, Major H. G. (Preston) Ford, Patrick Johnston Loseby, Captain C. E. Stewart, Gershom Foreman, Henry Lowther, Major C. (Cumberland, N.) Sutherland, Sir William Foxcroft, Captain Charles Talbot Lynn, R. J. Sykes, Colonel Sir A. J. (Knutsford) Fraser, Major Sir Keith M'Donald, Dr. Bouverie F. P. Taylor, J. Fremantle, Lieut.-Colonel Francis E. McLaren, Hon. H. D. (Leicester) Terrell, Captain R. (Oxford, Henley) Thomas, Sir Robert J. (Wrexham) Williams, Lt.-Com. C. (Tavistock) Worthington-Evans, Rt. Hon. Sir L. Thomson, F. C. (Aberdeen, South) Williams, Lt.-Col. Sir R. (Banbury) Young, W. (Perth & Kinross, Perth) Waring, Major Walter Williamson, Rt. Hon. Sir Archibald White, Lieut.-Col. G. D. (Southport) Wilson, Daniel M. (Down, West) TELLERS FOR THE NOES.— Whitla, Sir William Wood, Sir H. K. (Woolwich, West) Lord E. Talbot and Mr. Towyn Jones.
It being a Quarter-past Eight of the Clock, and there being Private Business set down by direction of the Chairman of Ways and Means under Standing Order No. 8, further Proceeding was postponed without Question put.
Private Business
COVENTRY CORPORATION BILL. [By Order.]
Order for Third Reading read.
Motion made, and Question proposed, "That the Bill be now read the Third time."
I venture to make an appeal to hon. Members opposite and to the House in regard to the Motion standing on the Paper and other similar Motions which might arise. In my position as Chairman of Ways and Means, I am charged by the House with a general supervision over the Private Bill procedure, and I wish to put this consideration before hon. Members, that if it were to become the practice to review on the Floor of the House the proceedings of Committees upstairs we should be following a procedure that might very easily ruin the standing which our Private Bill Committees have obtained in the public estimation. Hon. Members go there and render great service to the public at great sacrifice. They sit on those Committees in a judicial capacity. They hear evidence, parties are entitled to petition against points in the Bill, and they can petition to be heard by themselves or by their counsel. We here on the Floor of the House are not in the position of having heard the evidence on which those Committees have decided the points that are referred to them. Therefore, to fulfil my duty as Chairman of Ways and Means I conceive it right to make an appeal to the House on this occasion not to enter on a practice of this kind. I say that with regard to all Private Bill Committees generally, but in respect of these particular Bills there is even a stronger case.
At the beginning of every Session we set up a special Committee called the Local Legislation Committee, and on that Committee we appoint Members who throughout the year and year after year give their special attention to these matters of local government. Indeed, there are many Members who have served ten years or more, gaining experience and with a view to co-ordinating the work of local legislation they devote themselves specially to this work. I think that constitutes a great claim upon us on the Floor of the House that we should trust them, and trust them fully, with the duties that we have put in their charge. There is a third point which I would put forward, which is this, that in the case of both these Bills there is a proper remedy for the parties to the quarrel if they feel themselves in any way injured by the decision on the Bill. They have their chance of petitioning in the other House, and if they do so they will receive a second hearing, and the same attention will be given to the question that is given in our own House. For these reasons I make a strong appeal to hon. Members not to continue the reviewing of these questions on the floor of the House.
I beg to move, to leave out from the word "be" to the end of the Question and to add instead thereof the words "re-committed in respect of Clause 126."
I think the Chairman of Ways and Means will agree that it is not the custom of Members of the Labour party to hinder in any way or try to block private legislation on the Floor of the House or in Committee upstairs, but in regard to this Bill and the Bill which follows there is a principle at stake, and we cannot allow the Bill to leave this House in its present form without making some suggestion. It is quite true that the Committee sitting upstairs have all the facts before them. It is also true that it is not the practice, or at least it is a thing that one would not desire should be developed into a practice, of taking up the time of the House reviewing the work done on a Private Bill; but when questions of principle are involved, it is only natural that we, or any Member or any party who feel that any Clause cuts across a principle, should realise that we have the right to exercise our functions in trying to get that principle rectified when the Bill is before the House. In regard to all Committees who consider Bills up stairs, the same argument which was used by the Chairman of Ways and Means could be used. It could be said that, having discussed the matter in Committee upstairs, there was no occasion for the whole House discussing the Bill or any other part of the legislation when it comes downstairs to be reviewed by the whole House
In regard to the Bill in question, when it was leaving here objection was taken by one of our Members, but unfortunately in the hum of conversation at the time the hon. Gentleman who occupied the Chair did not hear the objection. Consequently, this is the only opportunity left to us. The Bill states in Clause 126 that the auditors should be drawn from two societies, the institute of Chartered Accountants or the Society of Incorporated Accountants and Auditors. We know that there are other associations of auditors and accountants in the kingdom, but if this Clause is allowed to go through and the Bill passes in its present shape, it would rule out entirely from any chance of selection as auditors to these two corporations anyone who is not a member of either of these two societies. There is in London a very large society, and in other parts of the country there are smaller societies, the members of which have gone through all the necessary work of passing examinations, and have actually entered upon a profession which has cost them money, but because they are not members of either of these two associations of accountants they are going to be debarred from exercising their professional career in the employment of either of these two corporations, the Coventry Corporation or the Wallasey Corporation, whose Bills are before the House. We wish, if it is at all possible, that the matter should be left open to the discretion, say, of the Minister of Health, and that a Clause might be framed in some such way as this—
That is just the point that was discussed by the Committee. The Department concerned are not prepared to take this responsibility. That may be one of the reasons why the Committee declined to insert this Amendment.
If the Department are not inclined to take the responsibility, although I understand Government Departments have already undertaken responsibilities of a similar character in other Corporation Bills, they might accept some such Amendment as that
There are instances in which, after the Bill had left the Committee, the promoters withdrew the Clause, and it was passed in a shape which made it agreeable to all accountants in the country. We ask either that you amend the Clause in the manner that has been suggested or if, as you say, you cannot accept that, that you withdraw the Clause, leaving it free to the corporation themselves. That does not impose any hardship on any of these societies. The corporations will be free to select a member from either society, but they will also be free to select others outside. It gives the others outside a chance and prevents them having what they consider to be the grievance of being excluded from the opportunity of selection by the corporations.
I beg to second the Motion. I accept absolutely the statement of the Chairman of Ways and Means. I think that the House ought to show more regard to the doings of Committees upstairs. My hon. Friend the Member for South Leeds (Sir W. Middlebrook) is respected in this House as the devoted Chairman of this Committee and for the duties that he performs for the public in this direction. At the same time there are occasions, even in the matter of Private Bills, when a principle is at stake and must be raised a second time, and I believe that this is one of them. It is a revelation to some of us to find that not only in industrial life but even in professional life there are many unions catering for one class of employés. You provide for two different societies being employed in the audits for the Coventry Corporation, but we find that there is quite a number of other societies that have members who are accountants. I should like to see one society for accountants in the country, and if the raising of this question now may do something to bring all accountants together into one organisation, this discussion will serve a purpose.
Then again, women are coming into all kinds of occupations to-day, and I do not think that this House desires to prevent women becoming members of various organisations. I am informed that there are very few women in the two societies to which the privilege is given to Coventry to choose from, but in the other societies there is quite a large number of women who are acknowledged and practise as accountants, and there are many women accountants in the country, and I should like to see more opportunity given to women to advance, as one who stands for equality between the sexes in this matter. I support this recommittal because of that. My hon. Friend said that this had been before the House on many occasions before, and I believe that it has been before the Local Legislation Committee on many occasions, and there have been various decisions given by the Houses of Parliament, but I do hope that the House will accept the recommital, or that they will see that some opportunity is given to other societies or accountants so long as they do exist, that they shall have the same opportunity of accepting positions as auditors in the various corporations as is granted to these two societies.
I would like to explain the attitude of the Committee, of which I have the honour to be Chairman. I am absolutely in sympathy with the object of the hon. Members, and there is no question in the mind of any Member of the Committee of giving special privileges to one or other society and excluding other societies. I hope that they will accept that from me. But there is one main point which has not been touched on in either of the speeches—the qualifications of the individual who is to be appointed to do this important work. I am sure that we shall all be absolutely in accord that the appointment of a man as between a municipal authority and the ratepayers, with whose money they are dealing, to be the investigator as to the proper method in which those monies should be dealt with, and as to the reliability of the accounts of the corporation, means a position of very great responsibility, and involving an experience, a knowledge, a training, and a position, that qualify the man so appointed, for discharging adequately and properly these duties, and that has been the one and only object that has influenced this Committee in the decision to which it has come.
Let us see what the position is. The hon. Gentlemen who have spoken spoke in the interests of societies describing themselves as accountants—I make no reflection upon them in any way—outside the two bodies that are based upon Royal Charter, and whose by-laws, methods, examinations and standards of qualification are subject to the sanction of the Privy Council before they can put them into force. In its early stage the Committee took this view. We want some knowledge that the standard of suitability for the post of auditor of these Corporations is a sufficiently high one to guarantee the ability of a man to do his duty. So far as local legislation is concerned the other societies have never, except once, appeared before the Committee. I am speaking, of course, of the period of 10 years within my own personal experience. There might have been periods before then of which I have no knowledge. They never offered evidence before a Committee as to their standard of qualification. Upon one occasion they appeared by counsel. Counsel addressed the Committee in their interests, but offered no evidence, and we knew nothing but what was contained in the statement of counsel. I would suggest that the Motion for re-committal, which I shall be bound to oppose if it be persisted in, be postponed to-night, and that the Bill be allowed to go through. I am prepared, so far as I am able to give such an undertaking—and as Chairman of the Committee I suppose I am not trespassing beyond my powers and responsibility—to say that my object is identical with that of the proposers of the Motion and that all I want to secure is that whoever may be appointed by an authority shall be a man whose training and qualifications fit him for the discharge of his duty. We cannot deal with that on this and the succeeding Bill, because it is impossible for petitions now to be presented and for anyone to appear. But if the societies outside the two mentioned choose on any future Bill, in this Session or next Session, to enter an appearance, to submit their evidence, and to let us know what their standard of qualification is, there will be no bar against them in favour of the Chartered and Incorporated Societies.
This question was inquired into by a Committee of the House of Lords in 1914. To that Committee evidence was submitted by one of these outside societies, and it was then shown that even solicitors were admitted as members, and that travellers and insurance agents were admitted, and that, although the societies possess members who are as competent as any chartered accountants, there was no guarantee that every member possessed the necessary qualification to enable him to do his work. I ask, Could we trust such men to deal with matters of such magnitude? Hon. Members opposite may be assured that I will take care there is a perfectly fair hearing for any representations made to us.
In view of the statement made by the Chairman of the Com- mittee, I would like to ask whether there is any possibility of the House of Lords getting this matter put into something like the form suggested. One of the largest of the societies has within the last few years made it obligatory that every one of its members shall pass an examination before admission as a member. Is there any possibility of some such Amendment as I am seeking being arranged in the House of Lords, providing that the employment shall be permitted of such accountants as either the Board of Trade or Ministry of Health or the Corporations themselves select? The Corporations will see to it that the only accountants selected are men with proper qualifications for the work.
Most certainly; the parties concerned, as I said when speaking earlier, will have an opportunity in the Lords of asking for one of two alternatives—the omission of the Clause or the amendment of the Clause.
In view of that statement, I beg to ask leave to withdraw my proposal.
If the Lords accept this modification without having before them the evidence from the particular society, I should not be bound by my pledge. The one point I want to get at is that either to the local legislation committee or some other committee there shall be sufficient evidence given to show that the men are qualified.
Amendment, by leave, withdrawn.
Main Question put, and agreed to.
Bill accordingly read the Third time, and passed.
Wallasey Corporation Bill
As amended, considered.
The same point arises in regard to this Bill as in regard to that we have just discussed.
Bill ordered to be read the Third time.
Profiteering (Amendment) Bill
Postponed Proceeding on consideration of Bill, as Amended ( in the Standing Committee ) resumed.
I beg to move, in Clause 2, Sub-section (3 a ), to leave out the words "rate of net profit" ["if the rate of net profit sought"] and to insert instead thereof the words "percentage rate of profit."
When the Bill was in Committee I undertook to reconsider the phraseology of this Clause, and I have come to the conclusion that the words I now propose express the view of the Committee.
Amendment agreed to.
Further Amendment made: In Subsection (3, a ) leave out the words "rate of net profit" ["exceed the rate"], and insert instead thereof the words "percentage rate of profit."—[ Sir R. Horne. ]
I beg to move, in Subsection (3, a ), after the word "conditions," to insert the words "due consideration being given to the relative expenses of carrying on the business."
I regret that I was out of the House when an Amendment of which I had given notice was reached, and when the right hon. Gentleman explained his previous Amendment.
The hon. and gallant Member cannot discuss previous Amendments.
I take it the position now is that we have to determine, as not being an unreasonable rate of profit, what is called a "standard rate of profit." I compliment the right hon. Gentleman on having the courage to undertake a task to which the Minister of Transport found himself unequal. We had a Bill some time ago where a question arose respecting reasonable profits on railway charges, and the Minister of Transport told us he felt the task was so great that he decided to refer it to a Committee of the House. Under this Bill the percentage rate of profit is to be a rate which does not exceed the percentage rate of net profit obtained from the sale of similar articles under pre-war conditions. That, I understand, is the balance that is ieft after making due allowance for establishment charges. What is included in establishment charges? I take it they will not include interest on capital involved in the carrying on of the business. Will the establishment charges include remuneration to the owner under certain conditions? I hope the right hon. Gentleman will explain the meaning of this proposal.
9.0 P.M.
The meaning of this will have to be interpreted possibly by law. I think those who have to interpret it and also the business men who have to guide their transactions by the Act should have the benefit of seeing in the pages of the OFFICIAL REPORT the explanation of the right hon. Gentleman as to the exact meaning of these words. I cannot refrain from again protesting against the way this Bill is being rushed through. This is a matter of immense importance especially under the present system of taxation when the Excess Profits Duty is very often a direct encouragement to putting a great deal of unnecessary expenditure into overhead establishment charges in order to really avoid paying Excess Profits Duty. That question has been so fully dealt with in debate that I do not refer to it further now. I divided against the original Act because it did not legislate in any way as to those firms who deliberately close down production in order to make greater profits which I consider one of the worst forms of profiteering. This under modern business conditions is not in all cases immoral, but it is done, and the consumer suffers, and if we can prevent it, it is all to the good of the unfortunate general public, who are living on wages and not on profits. Might I put this specific question to the right hon. Gentleman? When, owing to over-production, works are deliberately stopped, are the overhead charges during that time of cessation of production to be allowed to count as reasonable business expenses under this Amendment? All trade unionists here know that works are closed down owing to over-production, because one of the great defences they make of certain restrictive regulations of the trade unions is that it does happen, and if the overhead charges during such times are allowed to count as reasonable business expenses, and we cannot get some assurance from the right hon. Gentleman that they will not be allowed to count, I think this Amendment should be resisted.
This is a matter that has engaged a great deal of attention in the United States, where they have the same problem of high cost of living and profiteering in an even more acute form than here, owing to the greater trustification of industry in that country. There the pro- posal has been made by various leagues of consumers that it should be made illegal to close down works for the purpose of raising prices, keeping on the permanent overhead charges, and then lumping them into the selling price of the goods when production is again started. That is seriously being proposed in certain States, and has been fought out in the Courts. I do not think they have been successful in any State yet in bringing it about, but that is a matter which is sure to engage the attention of the public in this country before very much longer. As we get further and further down to the reasons for the high cost of articles in common use, this reason will be brought out. Some enterprising newspaper will get hold of it and expose it. I have put this case possibly very badly, but I hope I have made myself clear to the right hon. Gentleman, from whom I would like an assurance that the Committees set up by his Department will not tender to firms that are found to have done this sort of thing.
I should like to have some assurance from the right hon. Gentleman how he interprets this new Amendment: "due consideration being given to the relative expenses of carrying on the business." Reference has been made from the Opposition Benches to establishment charges. All manufacturers know that expenses incidental to carrying on a business are far and away beyond what is termed establishment charges. I think we are all anxious to put a ring fence round profiteering, but I am sure this House does not wish to do an injustice to one class of trader who may, before the War, have been earning a very low rate of profit and probably could not pay the average ordinary rate of interest which everybody would be willing to pay. Assuming that particular manufacturer has now put his house in order, improved his methods of manufacture, and reduced his working expenses by more efficient management, that man would necessarily be earning a higher percentage of profit, which he would be entitled to, and if the right hon. Gentleman can assure me that an individual of that kind will have consideration, subject to him selling to the public at a reasonable price, I think it would be only just. After all, we are more concerned with the selling price being a reasonable price than with whether or not a man can make a little more profit by more efficiency in his business. If you do not give that consideration to a manufacturer, you are putting a premium on inefficiency, and inasmuch as our one desire is to reduce the cost of commodities and bring down prices, anything that makes for efficiency, and indirectly for a reduction of the selling price, should be encouraged in every way. Otherwise, the effect will be that the manufacturer will be encouraged to inflate his overhead charges and working expenses so as not to earn an increased net profit, and that will not make for a reduction in the selling price. Therefore, I hope the right hon. Gentleman will give an assurance such as I have indicated.
I am not very hopeful of making any impression on the right hon. Gentleman, but it is only right, I think, that I should do my best to call attention to what is being done by this new Amendment. I must remind the House that when the first Profiteering Bill came before the House on the Second Reading, the only provision was that if anybody charged a price which was not reasonable they would be committing an offence, and my right hon. Friend made a very ingenious speech pointing out what an easy Clause that was to administer, because every court of law knew what was a reasonable thing, and I think he convinced the House for the time being. When we came to the Committee stage, I ventured to move an Amendment, which Sir Auckland Geddes at first refused and subsequently, under pressure from the Committee, somewhere about 2 or 3 o'clock in the morning, he accepted, putting in a proviso as to what was reasonable, because otherwise a court had no guide as to what was reasonable, nor had the tribunal any guide. No trader would know where he was, and we put in a proviso that, provided a trader only obtained a certain rate of profit compared with pre-war profits, he should not be liable to be proceeded against. This Clause is to take the place of the proviso to which I have referred. It was "the rate of net profit" that was laid down. I think it is entirely wrong to use those words in relation to a particular article. You may make a net profit in a business, but not being a trader or a business man, I should say that it is almost nonsense to apply those words to an article. You may have a net profit, but you cannot apply it to an article like a broom, or a kettle. The right hon. Gentleman (the President of the Board of Trade) now proposes to go away from that.
The hon. Member is discussing an Amendment which has been disposed of.
I am making the obvious point on the question of "the rate of net profit" and "the percentage rate of profit.' He now desires to put in some protection for the trader by using these words. But you must consider the relative expenses of carrying on a business. He has now gone back to the original position. Nobody has any guidance in the matter. The Tribunal will not know when to prosecute, because there will be no direction as to the expenses of the business. The trader will not know what is a reasonable profit. There will be no guide as to what is a due allowance for expenses of carrying on a business. We shall be in the old position that every Tribunal will be a law unto itself. You cannot apply these words to a single article, especially in the case of a little business where there are no books kept, no costing department, and no means of checking the expenses. This Clause, therefore, is almost unworkable. Like everyone else, I share the desire to try to make this Bill of some use, and an improvement upon the old Bill, but here we are back again to the old proposal, which said that nobody should make an "unreasonable profit." But nobody knows what "an unreasonable profit" is. Neither the traders nor the Tribunals will understand the effect of this Amendment, and we shall be charged with having passed an unreasonable Bill. I wish to make my protest against this Amendment, which places everybody at a disadvantage. When almost everybody is in the Smoke Room, and very few Members are present, there is not much hope that any Amendment to this proposal can be carried.
It may be due to my deficiencies, but I cannot understand what benefit is going to be given to the community by the introduction of the Amendment moved by the President of the Board of Trade. Instead of assisting the community, it will increase all the diffi- culties of the administration of the Act, and will continue all the differentiations and inequalities which have so far assisted the big profiteers. I do not understand what "a reasonable profit" is, or how to determine it. You may have one firm, it may be a small trader or a wholesale firm, which was making 50 per cent. profit before the War. Now they may have made a change, and consideration will be given to their expenses under that change. Then there may be another firm who before the War were making 5 per cent., or they may have been even losing, but now they may find an economic change, or they may have better organisation, or more efficient management, or better access to markets, and there will be a reduction of the expenses, with the result that they are making 25 per cent. profit. Will that be considered in the light of this Clause? There is a possibility that the firm is now making 25 per cent., it may be rightly or wrongly, in the changed conditions. Meanwhile, the persons who are making 50 per cent. will continue as before. This will lead us into the same labyrinth that we were in before.
Will the hon. Member direct his attention to the Amendment? He is speaking on the Clause generally.
I am speaking of what is reasonable in the light of the Amendment and with regard to the working of a firm now as compared with pre-War. I hope the President of the Board of Trade will either give us more information or withdraw the Amendment.
I am inclined to support the Amendment because I think it would make an unworkable Clause a little less unworkable. If we are to stop profiteering we ought to go about it in such a way that we will catch the people that we are trying to catch. We may hit the wrong people altogether. Judging by the arguments that we have heard one wonders what is a rate of profit and what is meant by the use of the term "profiteering". What is the rate of profit? Is it a percentage on the article or upon the capital employed in the business? If it is on the capital, is it on the share capital or on the whole of the capital? Instances have been given where it is said that a certain firm had made the enormous profits of 500 per cent. But I think that if the whole of the facts had been given the case would have been very much different. The Bell Mill firm which was mentioned has a capital of over ten times the share capital.
The hon. Member is not speaking to the question which is before us. Will he confine his observations to the Amendment?
I was trying to illustrate the difficulties of the case, especially with regard to the cost of articles in certain businesses. If we are to take the price of an article it might happen that one firm might quote what seemed a more reasonable price than another firm, and it would still be making a greater profit. There might be different standing charges and more efficient working which would enable one firm to charge a more reasonable price, and yet an allegation of profiteering might be made upon the cost price of an article in the case of another firm whose circumstances might be different, and in that case the allegation would not be a good one. What I want to get at is this. What is the objection? Is it to the profit being on the capital employed or to the price of the article itself? The hon. and gallant Member for Central Hull said that he had known instances of businesses which had been closed down for the sake of fostering an artificial demand for their goods.
I have had to ask the hon. Gentleman before to address his remarks to the Amendment before the House.
I hope the House will agree with the Amendment. As I have told the House before, I have been trying to look after the interests of the people who stand between the wholesaler and the public, the retailers, who have got the knocks all the way round. Owing to the way the Bill has been rushed on I have been unable to put down Amendments, but luckily for myself and for the retailers the Government have brought forward exactly one of the Amendments which I have been asked to move. Therefore I trust, from the point of view of the retailers and of justice, the House will agree with this Amendment.
Are we not to have any explanation from the Government?
I am very glad toe answer the question my hon. Friend has put to me, but I confess that the speech that my hon. and gallant Friend made was so fantastic in its assumptions that it is difficult to answer his question. He displayed a great knowledge of the world this afternoon which he entirely denied to me, and of democracy, with which he claimed I have never been in touch. Perhaps I have not been acquainted with the precise character of democracy he has been associated with, but, after all, my association is with the British democracy. He may have a knowledge of the world, but in the question he put to me he showed a complete ignorance of business. He assumed the case of a profiteer who shuts down his works. I find it very difficult to conceive of a man who profiteers shutting down his works.
It is very common.
The only design I see in business is in keeping the works open and producing the articles on which you are going to make a profit. He put a question about establishment charges. There is no doubt that if a man is so unfortunate as to have his works shut down that he is losing during that time, and the only recourse he has in counting up his costs is to count up the costs for all the time that the works have been standing idle. He would count the establishment cost and machinery and put them against any prices that he may be able to get. Although it is not for me, but for the Committees to judge, I have no doubt that any man who is so unfortunate as to have his works standing idle for a period of the year will undoubtedly be able to put the cost that that involves against the profits which he is able to make for the goods he has sold. The hon. and gallant Member for Newcastle-under-Lyme had a much more pertinent query on this matter. He wanted to know whether a person who was himself engaged in management would be able to put his salary down as one of the charges for carrying on the business. I think that goes without saying. When a man himself renders his services in the carrying on of a business he is entitled to his salary just as much as the labourer is worthy of his hire, and a man would be foolish who puts his own activity into the carrying on of the business and does not charge something in the shape of salary as against the revenue which the business succeeds in bringing in. The phraseology which has been used here is simple enough to be interpreted by any local committee that has got to carry out an investigation into complaints made under the Act. They have to consider, when the matter is brought before them, as to the rate of profits which has been earned, what the percentage rate of profits was before the War after you have given due allowance and consideration to the expenses of carrying on the business, and again, after the War, after giving the same consideration. One of the objects in putting down this Amendment in this shape is to make certain that, although the rents have not, as we know, been raised in this country in anything like the proportion to which the price of material has risen and the cost of service has risen, because we have restricted rents—that therefore you should be able to prevent the manufacturer treating the rent and the cost of running his business as if they had risen in a like proportion. That is its main object, and I hope the Amendment will be passed without further delay.
I would like to ask the right hon. Gentleman one question. Supposing a man or a firm was carrying on several lines of business, and one of those lines was such a bad line that on it he makes a substantial loss. Is that loss to be taken into account in allowing him to sell an article at a much higher price than other people and to remain immune under the provisions of the Amendment?
I do not think that would be a practicable proposal so far as the Amendment is concerned.
Amendment agreed to.
I beg to move in Sub-section (3, b ) to leave out the words "rate of net profit" ["if the rate of net profit sought"], and to insert instead thereof the words "percentage rate of profit."
This Amendment is consequential upon the previous Amendment on this matter. The Amendment which has been passed by the House relating to the percentage rate of profit is now followed by a similar Amendment using a similar phraseology, as follows:
I would appeal to you, Mr. Deputy-Speaker, on a point of Order, that these Amendments are not all the same. With great respect to the right hon. Gentleman, and I hope he will excuse me for interrupting him, the first two Amendments which he proposed are consequential on the Amendment which the House has just passed. The Amendment on the Paper to insert after "conditions," "after making due allowance for establishment charges," is, I submit, a different subject altogether. The one we have just passed deals with business expenses, and this, I submit, is a different subject. I ask for your protection against passing this Amendment in the guise of a consequential Amendment when it is different altogether.
I think the hon. and gallant Gentleman does not realise that I put down an Amendment in precisely similar terms, "after making due allowance for establishment charges,' which has been replaced by a manuscript Amendment in similar phraseology, as follows:
"due consideration being given to the relative expenses of carrying on the business."
The Amendment that I called upon the right hon. Gentleman to move is to leave out the words "rate of net profit," and to insert "percentage rate of profit." We should deal with that first.
Amendment agreed to.
Further Amendments made: In Subsection (3, b ) leave out the words "rate of net profit" ["rate of net profit obtained by sellers"] and insert instead thereof the words "percentage rate of profit."
After the word "conditions" insert the words "due consideration being given to the relative expenses of carrying on the business."—[ Sir R. Horne. ]
I beg to move in Subsection (3, b ) after the words last inserted, to insert the words
"( c ) The expression 'percentage rate of profit' shall mean the percentage rate of profit upon the capital employed in the business."
I had a letter from the Profiteering Committee of the city I have the honour to represent, with other Members of the House, in which they complain that there was no definition given in the Bill as it stood. In Committee upstairs we discussed this point, and the President of the Board of Trade met us very fairly, and promised to give the matter consideration. I think he has redeemed his promise in what he has done, but I am not sure that he has added very much to the clear understanding of what the Bill means by the words added. He has put in front of the word "rate" the word "percentage." As the word "rate" itself is only a short term for "rate per cent." the Bill really reads now "percentage rate per cent. of profit," and I do not know that that carries us very far. I have not had any opportunity of hearing what was really in the right hon. Gentleman's mind. I understand the position we are now in is that in considering the question of profiteering, a trader would first of all be allowed his establishment charges, and, in addition, if he is himself rendering any service in his business, he would get included in his establishment charges, or in addition, remuneration for his own services. Therefore, it appears to me that the only thing left to be provided for is a return upon the capital he has in his business, and I conclude that that is all that the words "percentage rate of profit" apply to. To make it clear, I ask that these words I have moved be inserted.
It has already been decided to have a percentage rate of profit on the articles. Is he now to have a percentage rate of profit on his capital? The two things seem to conflict.
I would like to add this query to the others. The proposal here is to bring in the amount of capital invested in the business, and I contend that this is a matter of very great importance that ought to be cleared up. I am not clear myself, and I do not think many other hon. Members are, as to whether it is percentage of profit on the article, or on the capital. This matter has been referred to by an hon. Member who has recently come to this House, but who, I think, has intimate and special knowledge in the case of the Bell Mill, which earns a profit of 550 per cent., which I am told by those who know the mill conditions, is not unreasonable, but which the ordinary person thinks is a colossal profit and rank profiteering. There is another point which seems to me very pertinent in this case. Mills in the North of England are changing hands to-day at four and five times the cost of the original mills. The charge is made that a great deal of the so-called cost is watered capital, and a profit of only perhaps 4 per cent., 5 per cent., or even 8 per cent., might seem reasonable on this very large amount, but yet, on investigation, it might be found to be really unreasonable profit. If the defence can be made that the capital is only earning such and such percentage, and yet it can be proved that the capital is artificially inflated, then I contend, with great diffidence, because I know I am speaking in the presence of many financial experts, that this is a case of profiteering within the meaning of the Act. It is because I wish to put these two points, that I have risen to second the Amendment.
I do not think there is any very great difficulty about this. My hon. and gallant Friend came to us from the great silent service. There seems to have been, in his case, some little reaction. The Clause of the Bill deals with the article alone, and accordingly the percentage of profit is taken upon the article, and not upon the capital employed in the business. When I say, "upon the article," that means, of course, the turnover on that particular article. One is familiar with sales of businesses in which you take 30 per cent. profit upon the turnover of a particular article, and then the business is worth buying. That is the kind of thing that is best understood in business, and that is why the phraseology has been adopted in that form. Accordingly, I would venture to give that explanation to my hon. and gallant Friend.
Amendment negatived.
I beg to move, in Subsection (3) after paragraph ( b ) to insert:
"( c ) in the ascertainment of what is the net profit for the purpose of this proviso, no account shall be taken, nor shall any deduction be allowed, in respect of Income Tax or Excess Profits Duty chargeable upon or paid by the manufacturer, im- porter, retailer, or other person selling the goods to which for the time being this Act or the principal Act is applied."
I formally move this Amendment for the purpose of getting some statement from the right hon. Gentleman as to whether he has been able to make any progress since Tuesday in the preparation of Regulations which he proposes to substitute for this. I am perfectly sure he will do so ultimately; but I was hoping that he would be able to say on this Report stage what had been done in the direction.
I beg to second the Amendment.
I recognise the purpose for which my hon. and learned Friend has put down this Amendment, that is to ascertain what really is the position of affairs. I propose, as I said in Committee, to issue an instruction dealing with this matter. I gave my own opinion that these particular items were probably chargeable against the business before you came to assess the profits. I am glad to find that what I supposed ought to be the law upon the matter has been declared to be the law by the Court of Appeal. You are not, of course, before you arrive at the profits to charge your Income Tax as one of the charges on the business. That I think is perfectly clear. [An HON. MEMBER: "Hear, Hear!"] But I have found cases where it has been. On the other hand the Excess Profits Tax is really a charge against the business, and it does not fall to be dealt with in the same way as Income Tax is dealt with. I find that the Court of Appeal laid it down that
"Excess Profits Duty is a sum of money which has to be paid to a third person as a debt of the company, and is therefore an outgoing which has to be paid before it can be ascertained what are the profits distributable."
It is perfectly plain in law that Excess Profits Duty is of an abnormal character and is a duty with which the company is charged before you arrive at what are the profits. Similarly, the Corporation Tax is of the same character as the Excess Profits Duty and not like Income Tax. I propose that the committees which are dealing with profiteering throughout the country shall be instructed in accordance with these views.
I am glad to have had that explanation and I ask leave to withdraw my Amendment.
Amendment, by leave, withdrawn.
CLAUSE 3.—(Interpretation of s. 2 (b) of the principal Act.)
"For removing doubts, it is hereby declared that a person shall not be deemed to be a trade competitor within the meaning of proviso ( b ) to Sub-section (2) of Section Two of the principal Act of a person against whom a complaint is lodged by reason only that he is a member of a cooperative society which carries on a business of the same class or description as is carried on by that person, if he does not take part in the management of and is not a paid official of the co-operative society."
I beg to move to leave out the Clause. This Clause purports to remove doubts in Sub-section (2) of Section 2 of the principal Act as to whether the member of a co-operative society is a trade competitor within the meaning of proviso ( b ) of the Sub-section. I am not going to labour the point which was dealt with upstairs fairly fully, and my view of which received support from various members of the Committee. On the one hand you have the private trader—in most cases a small man—and on the other hand you have the co-operative society, often of great influence and wealth. I am anxious that there should be absolute impartiality in this matter. I say, and I think I am entitled to say, that though a man is not a manager or a paid official of the co-operative society, or act in the direction of its business, he may yet be a keen co-operator, and it is undesirable that such a person should be allowed to sit upon the local tribunals at the same time when a person whose conduct in the trade similar to his is under investigation. One wants perfect impartiality in these tribunals. The right hon. Gentleman said that in certain parts of Lancashire practically the whole population were co-operators, and therefore—this was his reply to my point—there would be great difficulty in forming tribunals without having some of them on. I venture to think that this is hardly a substantial answer to a question which is of great importance to the private trading community. I do not wish to raise unnecessary questions, and I am desirous of avoiding unnecessary criticism, but I am bound to put this matter forward in the interests of those people who are carrying on businesses, paying their full rates and taxes, and bearing all the heavy burdens of the age, for they think—and I think they rightly think—that they ought not to be discriminated against and declared to be deemed ineligible to sit upon the tribunal, when a man who is a co-operator, if he be only a member and is not concerned in the management, may sit, though probably this man is just as keen in the success of the society to which he belongs. He listens to these cases, and is able to determine them with really an amount of determination against a competitor in what is really his business.
I Leg to second the Amendment. In doing so I am placed in somewhat of a difficulty, for I do not want to import any heat into the discussion. I hold a letter in my hand which I have received from the Secretary of the National Traders' Defence League, asking me to put down an Amendment to reject this Clause. I do not say that I agree with all this gentleman says, but I will read that portion of his letter which is relevant:
"No one can be a member of a co-operative society unless he or she is a shareholding partner, and as the co-operative movement has declared its object to be the extermination of the private trader, every co-operator is not only a competitor in business, but also an opponent seeking the destruction of the others."
[HON. MEMBERS: "Oh, Oh!"] That is received with jeers by hon. Members above the gangway, but I could quote statements from different co-operators who say that very thing. Though I do not go so far as this writer, yet I do say that private traders are, under this particular Clause, placed in an unfair position. The Clause ought not to be allowed to continue in the exact form in which it stands. Let me make two suggestions. The President of the Board of Trade has said that there are districts where everybody is a co-operator and where he could not get anyone except these to be on the tribunal. That may be the ease in some parts of England, but not in most parts. At any rate, he might do this: limit in some way those co-operators who may or may not sit on the tribunal. He might, for instance, allow a man who had never taken any active part in the management, of his particular branch or store to go on the committee, but if a man bad been a paid official he ought to be debarred. If we are going to allow a member of a private society to sit on the tribunal, we ought to give the retailer a chance of being represented wherever any trading society wishes to be represented, and then they would be placed in the same position as co-operators. If this is not done you will be doing a great injustice.
It has been said quite accurately that in some parts of England it has been found possible to get a representative tribunal, under the circumstances, of the old Bill. This Clause has been inserted to meet that difficulty. I appreciate at once the feelings that have been caused, and I know that in many cases the differences between co-operators and private traders have been very strong and have been accentuated. At the same time there are large bodies of co-operators who take no part in the conducting of the business, and they have not the slightest idea of the methods by which the business is carried on in the co-operative society to which they belong. It is true there may be general statements in their rules which advocate cooperation as against private trading, but that is not going to influence, I should imagine, the mind of a man in deciding on a particular complaint when that man has robbed the public and sold his goods at a price so unreasonable as to condemn him under this Bill. I came frankly to the conclusion that there was so little real likelihood that prejudice would operate to the extent of doing hurt to the private trader that I did not see any danger in putting this Clause in the Bill, and I hope the House will assent to that view.
Amendment negatived.
CLAUSE 5.—(Powers of inspection, etc., by officers of the Board of Trade,)
(2) If any person having the custody or control of any book or document which such officer or other person is authorised to inspect under this section refuses or wilfully neglects to produce it for inspection, or if any person who is able to give any information which is required under this section unreasonably refuses or wilfully neglects, when required, to give that information, or knowingly furnishes any information which is false in any material particular, he shall be liable on conviction by a court of summary jurisdiction to a fine not exceeding fifty pounds or to imprisonment for a term not exceeding three months, or to both such imprisonment and fine.
(3) Subject as hereinafter expressly provided any information obtained under this section shall be treated as confidential and shall not be communicated to any person except the Board of Trade and the committee by which the investigation is being con- ducted, and if any person discloses or publishes any information so obtained in contravention of this provision he shall, on conviction by a court of summary jurisdiction, be liable to a fine not exceeding fifty pounds or to imprisonment for a term not exceeding three months, or to both such imprisonment and fine.
Amendments made: In Sub-section (2) leave out the words "other person" ["such officer or other person"] and insert instead thereof the words "qualified accountant."
After the word "Section" ["inspect under this Section"], and insert instead thereof the word "unreasonably."—[ Sir R. Horne. ]
I beg to move to leave out Sub-section (3). This is the Sub-section which provides for penalties to be inflicted for disclosing or publishing any information given before the Investigations Committee. The whole purpose of moving this Amendment is to ensure publicity, and I shall address my argument on that line. Last year a Select Committee was appointed to go into the question of high prices, and one of the first things it did was to decide to hold its meetings in public. But now the idea of publicity appears opposite to the policy of the Government. We are not of the opinion that any of the penalties you can impose on the profiteer under this Bill are likely to deter him from that course of action. The fines are too insignificant, and if it comes to a question of imprisonment a supernumerary can always be made the scapegoat. On this question we pin our faith to publicity as being the greatest deterrent of all, and that is why I urge the rejection of this Subsection.
I beg to second the Amendment.
It is quite impossible for the Government to accept this Amendment. It is perfectly certain that you will never get the information you want if you are going to make arrangements by which the evidence given before a Committee is to be disclosed to the public. There are many obvious reasons for that. The business of this country is carried on by individual traders in competition with other traders, and if you are going to disclose the mechanism of every particular business in the country you are going to create hostility in the mind of every trader in this country, and do a serious detriment to business. The result would also be to disclose to all our world competitors how we carried on business in this country, and while all the rest of the world might be delighted with that course, I am sure no single country in the world would be willing to place the same information at our disposal.
I do not think this Amendment should be so easily dismissed as has been suggested by the right hon. Gentleman. I think we should have at the disposal of the country all this information. I do not think the information we seek has reference to the particular methods and the principles governing the undertakings concerned. There are various Committees set up under the principle Act, and under this amending Bill, which investigates the proceedings and the trade activities of certain persons or companies or combines or organisations. They arrive at a conclusion and publish a report. I think the public of this country are entitled to ask that the information upon which that conclusion is based, whether the report is in favour of or against the company or combine, should be placed at their disposal, so that they can form their own conclusion upon it. I hope my right hon. Friend will consider the desirability of reviewing the position from that point of view.
10.0 P.M.
I do not think the right hon. Gentleman has given us quite a sufficient reason for the lack of publicity in these matters. We know that the Profiteering Act has not been a brilliant success, but very few hon. Members will agree with the mover of this Amendment in the objectionable charge which he made against the Government, that they are in favour of some kind of secrecy in this matter. At the same time, I think we are entitled to rather more reasons than the right hon. Gentleman has yet given for the secrecy in these tribunals. I cannot believe that publicity is so dangerous as he alleges. I think the Court could be relied upon to keep such trade or business secrets as it was dangerous or unreasonable to disclose.
I would point out to my hon. Friends that there might be an investigation into the business of a person who might be entirely acquitted of any possible charge of profiteering.
The object of the Amendment is to protect such a person.
If this Amendment were carried, the effect would be that the whole of that man's trade competitors throughout the world would be entitled to see the whole process of his business. The mover of the Amendment has not attempted to show any reason why, because a man is summoned before a tribunal—whether he be guilty or not—his trade competitors should be allowed to have that information.
Amendment negatived.
CLAUSE 6.—(Publication of Reports.)
"Where under the principal Act an investigation has been held, the findings and decisions of the Board of Trade or the committee or tribunal which held the investigation, and their report or any part thereof, shall, if the Board of Trade think fit in the public interest, be published, notwithstanding anything in the principal Act or this Act."
Three manuscript Amendments have been handed in by the hon. Member for Dartford (Mr. Mills). I take it that they are all part of one proposition?
With the exception of the one to leave out the words "if the Board of Trade think fit in the public interest". That stands separately from the other two.
That is in Order, but the other two, providing that the proceedings shall be public, should have been brought up in the form of a new Clause.
I beg to move to leave out the words "or any part thereof".
We desire to strengthen the local autonomy of the profiteering committees, and if necessary the other committees which may act with regard to wholesale dealers. I gave in Committee the case of Messrs. Coats. An exhaustive inquiry was held, nothing of which was made public except the findings, though the public was treated to an ex paste statement by Messrs. Coats on their defence. The answer given to the Committee was that the case arising out of Messrs. Coats' rejoinder is now under consideration. But if we could have had more publicity, if the committee that came to a certain conclusion were able to publish its findings, we should confer a little more power on the committees which are endeavouring to arrest this evil.
I have no difficulty in agreeing with those who say that publicity is the best corrective of profiteering and that an investigation into trading in this country would, if there is an abuse going on, be the very best possible impediment to such abuse. While I agree with that point of view, I am at the same time very much impressed with the possible danger which may arise in connection with some particular report. I am perfectly certain that nobody will be inclined to think that the Board of Trade has been prejudiced in favour of concealment, for this reason, that there have been very many reports issued by these various committees, and every one of them has been published. That, at least, shows that there is no reluctance on the part of the Government to make these disclosures where they feel it can be done without any harm. But we should be incurring a very grave risk if we were to provide that in every case in which a report was made the report should be disclosed. It is perfectly possible that you might find many instances in which you were doing the greatest possible detriment to the trade with which you were dealing if you were to make disclosures which the committee thought fit to insert in what is, after all, a private report to the Government Department concerned. On the other hand, the Government Department is liable to the criticism of the House of Commons, and if there are reports being held up which the House of Commons is anxious to see, or which it thinks might be suitably published, there is always a Minister in charge who can be attacked. My hon. and gallant Friend (Lieut.-Commander Kenworthy) laughs, because up to now we have not suffered much from his attacks. But more formidable people might possibly take a view which would have weight and importance. I am perfectly certain that if we are to get the full benefit which we ought to get from such an Act as this, we ought to use discretion in a matter of this sort. There is one Department under which it is to be managed, and it is for that Department to do its duty, both by the public, as the consumer, and the trader whose business they investigate. If you do not do that, you will not have confidence from the business community, neither will you get the disclosures you require. Accordingly, I oppose the Amendment.
Amendment negatived.
I beg to move, after the word "Trade" ["if the Board of Trade"], to insert the words "or committee or tribunal."
I hope this will be more acceptable, because it is of a more moderate character. This Clause deals with three separate kinds of investigation; one kind carrier on by the tribunal, one that may be carried on by the committee, or one that may be carried on by the Board of Trade. In regard to the investigations before the tribunal, they are at present open to the Press, and, therefore, to the public. The effect of the Clause as it stands is to enable the Board of Trade to prevent the publication of a report. Under the Clause as it stands the Board of Trade will have the power, first to stop proceedings, and later on if they care to stop publication. That is not a power that we should leave in the hands of the Board of Trade. The effect of the words which I propose, will not be to disclose any confidential information which may be communicated to the committees of investigation or to cover any of the information given in evidence. The Board of Trade are still left in this position. The local tribunal is appointed by the local authority, and over it they have practically no control, but its investigations are public now, but if there is any matter of sufficient importance to be brought before the Central Committee it is the Board of Trade who appoint that Committee, and the responsibility rests upon the Board of Trade to appoint a Committee upon whose judgment they should be able to rely. If it is a matter about which the Board of Trade think that the investigation is so delicate that it cannot even be entrusted to a committee, then they can undertake that investigation themselves, and over the report of that investigation the Clause would leave the Board of Trade absolute control. But I submit that if a matter comes before them which they think should be referred to a Committee and they have the power to appoint that Committee and put responsible persons on it, they should not have power to withhold the report. The words proposed would leave it to the judgment of the Committee to say whether it is in the public interest that the reports should be published, taking into account the past experience of the Board of Trade and the fact that they have not found it necessary to suppress any report, which shows that they have exercised great wisdom in selecting the persons to sit on those Committees and that those Committees have prepared reports which, in the opinion of the Board of Trade, have not been detrimental to the public interest. I ask the President of the Board of Trade to continue to show his confidence in those Committees and to express that confidence by accepting this Amendment.
I beg to second the Amendment, in spite of the compliment paid me by the President of the Board of Trade, for which I thank him. This Amendment is very valuable. It would give an added feeling of importance and responsibility to the local tribunal. They would live up to that responsibility and would not insist upon the publication of detailed business the publication of which would damage the Nation. I have sufficient confidence in the local tribunal to believe that they would respect that sort of obligation. I have not the same confidence in the Department over which the right hon. Gentleman presides. I do not trust the bureaucracy. They naturally hate any publicity. It is the same thing in the Admiralty. They mark everything they possibly can "confidential," "highly confidential" or "strictly confidential." The Board of Trade are no different. My hon. and gallant Friend (Captain Loseby) remembers the Bradford case. I remember the outspoken comments of one member of that tribunal when he declared that the Board of Trade were not entitled to prevent them from publishing the facts. With that in view, I would like to give the tribunals a little latitude. In the case referred to they were apparently blocked by the Board of Trade and an attempt was made to withhold the report on wool profiteering. It is said that this Amendment is unnecessary because the Minister can be criticised in this House. The private Member's opportunities of criticism are becoming more and more restricted. Quite righty, the President of the Board of Trade says my own criticism has not caused Ministers to suffer. I was not brought up to do this sort of thing, but before he came here the right hon. Gentleman made his living by talking. I was a member of the silent service. [HON. MEMBERS: "Pity you ever left it.'] I have not left it; I am still on the active list. With great seriousness, I do suggest that the opportunities of the private Member to bring Ministers to book are becoming more and more restricted. Our questions are cut down in number, the House allows itself to be brow-beaten by the Government, Amendments to Bills are put down by hon. Members and what amount to votes of no confidence are moved, and then down comes the Lord Privy Seal with a big stick and the serried ranks—
The hon. Member has not been brought up to be relevant.
I do not think the tribunals, if they feel they are suffering under an injustice from the Board of Trade, can really look to this House for protection, constituted as this House is.
The hon. Member has already said that three times.
I cannot accept the Amendment. The duty in this matter is one which the Board of Trade cannot devolve upon any other shoulders. The Board of Trade appoints the Committees and the Committees work under its auspices. When the Committees report, they report to the Board of Trade, and I, as President, must take upon myself the responsibility of saying whether the reports shall be published or not. On the one hand, I should be held responsible for any harm that the reports might do, and on the other hand I should take credit for any good that they might do. The hon. Member asks about the tribunals. As a matter of fact the tribunals dealing with public complaints of profiteering hold their proceedings in public.
I regret that my right hon. Friend has given such an emphatic "No" to the Amendment before the House. This is an emergency measure, intended only to deal with what we hope will be a speedily passing phase, and therefore I should have thought that all means of allaying public unrest in connection with this very troublesome and, indeed, dangerous position through which we are passing would have been very welcome to the Government. It is on that ground I am going to make a proposal to my right hon. Friend in the hope that, although he said "No," I may be able to persuade him to weaken in that attitude. One must hope that arguments will have some effect addressed to the responsible Minister in charge of the measure. I quite agree that in certain circumstances the Committee selected by the Board of Trade might be actuated by unworthy motives, and they might seize the occasion of publication unfairly. I admit that. Is it not possible for the Board of Trade to consider this, that, except in circumstances where, in the opinion of the Board of Trade, that proposed action of the Committee is actuated by prejudice—malice is such a hopeless word from the legal point of view—that it should be left to the Committee—and all these Committees are responsible Committees—at their option to publish.
If the situation were that which the right hon. Gentleman described, I should readily agree with what he suggests, but I have no fears of any of these Committees acting through malice or prejudice. What I am afraid of is that they might act through ignorance or misapprehension. A Committee considers a small portion of trade or industry, although it may be a large industry in itself, and they do not know, and they have no means of appreciating, the effect of that report upon other industries. The Board of Trade has to look upon the industry of the country as a whole, and it is only when you have brought to bear on their report the experience and the knowledge of people who are dealing with the trade of the country that you can really see whether in their report there might not be passages which would be detrimental to the interests of the country. It is from that point of view, I say, that as the Minister I cannot devolve the responsibility on anybody else. To show that the discretion is not exercised by any caprice or any desire to conceal, you have got the fact that every report up till now has been published, and it is in that spirit the Board is likely to act in future.
Amendment negatived.
I beg to move, at the end of the Clause to insert the words
"Provided that in no case shall a report of a Committee dealing with the business in the United Kingdom carried on by any person, firm, or company mentioned in the report be published unless such person, firm, or company, or a representative on their behalf, has had an opportunity of appearing before the Committee and of being heard in connection with the matter dealt with in the report."
The object of that proposal is to get rid of a criticism which has been made of some of the Committees, and which has formed the most damaging criticism which has been made upon their reports. It has been said that they have reported adversely upon particular firms in some cases when they have not given the firms an opportunity of being heard in their own defence. If that be true, that is against all the traditions of English justice and would, if it were continued, throw a slur upon the whole system of reporting by these Committees. I accordingly desire very ardently to get rid of a possibility of that kind, and it is for that purpose that I move the proviso which is in my name.
I am sure we all agree with the right hon. Gentleman's motives in moving the Amendment, but is there any means of preventing obstruction to the publication of a report? Could there be a time limit put in? What is meant by "an opportunity of appearing"? There has been a good deal of delay, I think, in publishing these reports, and it would be possible for a ring of firms to put up a lot of obstruction to the publication of a report. We have seen that sort of thing carried on in the U.S.A., where in the courts every device is used to prevent a certain judgment, and is the right hon. Gentleman sure that his words will not give an opening for that sort of thing? Would it not be possible, in another place, to put in some such words as "within a reasonable time"?
Is there any power to compel representatives of the firms in question to appear?
The wording of the Amendment is not the wording that is on the Paper, and there is a phrase inserted about "within the United Kingdom." Does that mean to say that export trade is in a different category?
No; it means any person, etc., who carries on business in the United Kingdom, and the wording does not subtract from the purview of the Committee any portion of a firm's business. In response to what my hon. and gallant Friend said about delay, this is not a provision which could by any chance delay publishing a Report. The point is that before a Committee comment adversely in their Report, before they make up their Report, they ought to give a hearing to the firm or firms in question. This will in no way delay the issue of any Report. It is only to ensure that before a Committee come to an adverse decision against any firm, the firm shall have an opportunity of being heard.
Has the right hon. Gentleman the words that he wants? He says "published," but he wants to prevent the preparation of a report of a Committee, unless the parties concerned have had an opportunity of appearing before them. The power of publication is in his hands and not in the hand of the Committee.
As soon as it is known that no reports can be published, unless the Committee have had before them the persons concerned, no Committee will frame a report before they see the persons concerned. That is the whole point.
We all agree in the fairness of the proposal, but there is a great confusion in the words. It arises from the fact that the Bill is being rushed through. Even the Minister in Charge has to amend his own Amendment before the House. It is quite obvious that the Minister has it in his own hands to permit or to prohibit the publication of a report. If he thinks that anything improper is being done, he can forbid the publication of the report, and, if he does that, we can criticise him in the House. He now seeks power which would bind the Minister himself.
Certainly, I do not object.
He will be able to say: "I should like to publish this Report, but I cannot do so because of this section which says that I must not publish the Report until these people have been heard." That is a very reasonable thing, but there is nothing to make the Committees hear these people. It does not order them to hear anybody. It merely says that the Report shall not be published unless they have an opportunity of appearing before the Committee. If the Committee have not heard them, the Report that they issue cannot be published. No one can publish it. There is no power given to the President to require the Committee to hear the parties charged or incriminated. It would be far better to withdraw this Amendment and shape something which would convey a clear meaning. The point was raised by an hon. Member that, as the Amendment reads, it appears to exclude any Report which deals with export prices. I do not know the intention of the Government, but the words are:
"Report of the Committee dealing with a business in the United Kingdom carried on by any person, firm, or company."
That appears to exclude any profiteering in export prices. Perhaps that is desirable. We want something clear. It would have been much more desirable if we had had the Amendment on the paper. Supposing a Committee have not heard the parties concerned, this Amendment, although the public wants the Report and there is serious disquiet about it, will enable the President to come down to the House and say: "I am very sorry, I should be glad to give the Report, but I am prevented by a Section in the Act."
It certainly would enable the President to come down to the House and say that he was prevented from publishing the Report of a Committee which had refused to see the people upon whom the Report commented.
Which words are they?
A Report cannot be published if the people concerned have not had an opportunity of appearing before the Committee who have dealt with their case. I cannot imagine anything that would be a more complete answer than that the President should say that the Committee had refused to call before them the very people upon whom the Report commented. I cannot imagine that any hon. Members would regard that as an ineffective answer. The Committees that are going to deal with the various complaints must understand that, for the Reports to be of any use at all, the people must be called before them who are to be commented upon in that Report. That is the whole point, and the words. here quite meet it.
I think the right hon. Gentleman rather misunderstood the hon. and gallant Member for Central Hull. I think he intended to suggest that there should be a time limit for the persons who complain to appear before the Committees. Would it not meet the point if the Amendment read like this:
"Had been invited to appear and had not within a reasonable time accepted the invitation."
I should much prefer that this Amendment was more definite in this sense that—
The hon. Member has already made one speech.
Amendment agreed to.
On a point of Order, Mr. Deputy-Speaker. I have not made a speech on this Amendment.
Yes. The hon. Member spoke immediately after the hon. and gallant Member for Central Hull.
No, Sir.
I took down his name. I always make a note of the name.
I only asked a question, which has not been answered.
CLAUSE 8.—(Provisions against victimisation.)
I beg to move to leave out the Clause.
I move this in order to obtain information from the President of the Board of Trade. I gathered that the reason of the Clause was to protect the retailer against the wholesaler, but on reading the Clause it is not what I imagined, or the public outside the House, or the retailers themselves imagined. I have here a request from the Traders' Federation, which represents at least 40 Chambers of Commerce and smaller trades associations. They ask me to see that Clause 8 is withdrawn. They certainly are under some misapprehension, and I may be or may not be but I can quite imagine that a retailer reading this Clause would have a certain apprehension. It means that he is liable to a fine of £200 or three months' imprisonment or both. That is a serious penalty. If the right hon. Gentleman can give me an assurance that this Clause is framed for the retailers' protection and not to punish him, I will withdraw my Amendment.
I beg to second the motion, in order to get the opinion of the right hon. Gentleman.
The Clause undoubtedly was originally designed to protect the retailer against the wholesaler who refused to supply him after the retailer had made a complaint against the wholesaler. No doubt there has been difficulty in getting any retailers to bring forward cases against those who sell to them wholesale. We believe that in some cases it has been due to the fact that the retailer fears that in future the wholesaler would deny to him the supply of commodities which he had been accustomed to get from him. If that is accurate, it is quite obvious that some protection to the retailer is required, and, accordingly, we have put in Clause 8 what we believe to be a sufficient protection for his interests in the future. It is perfectly true that Clause 8 could also apply to a person who purchased from a retailer and complained
SCHEDULE. MINOR AMENDMENTS. Enactment amended. Amendments to be made. S. 1(7) … … "For subsection (7) the following subsection shall be substituted:— "This section applies to any article or class of articles to which it is applied "by order of the Board of Trade, being an article or class of articles declared by "the order to be one of a kind in common use by the public, or being material, "machinery, or accessories used in the production thereof, but this section does "not apply to transactions the price in respect of which is from time to time "declared by a Government Department to be controlled." S. 4 … … For the words "to which this Act applies" there shall be substituted the words "to which section one of this Act is for the tine being applied by order of the "Board of Trade." S. 7(3) … … At the beginning there shall be inserted the words "Notwithstanding any" provision in any other Act to the contrary.'
I beg to move, in paragraph S. 1 (7), column 2, at the end to insert the words:
Provided always that the provisions of the principal Act as amended by this Act shall automatically apply to any article previously controlled immediately such control is removed, unless and so far as the Board of Trade shall otherwise order.
against him, and was afterwards refused a supply of commodities by that retailer but what is good for the wholesale goose is certainly also good for the retail gander. He must not apply the unfair rule against his customer any more than the wholesaler should against his retail customer. Accordingly, the Clause in the terms in which it is drafted would cover both cases, and I think in both cases it is fair.
I should like to supplement what my right hon. Friend has said. The Committee over which I have the honour to preside has over and over again been defeated in investigating a case because the retailer has been afraid to come forward to give the necessary evidence to enable them to go on.
Amendment negatived.
CLAUSE 9.—(Short Title, Construction and Duration.)
(1) This Act may be cited as the Profiteering (Amendment) Act, 1920, and the Profiteering Acts, 1919, and this Act may be cited together as the Profiteering Acts, 1919 and 1920.
Amendment made: In Sub-section (1) leave out the words "and this Act," and insert instead thereof the words "shall be deemed to have continued in force until the date of the passing of this Act and the principal Act as amended by this Act."—[ Sir R. Horne. ]
It is really deplorable that when the Ministry of Food has removed control from articles, in the interval before the Board of Trade can make an order scheduling these articles in the Profiteering Act, there has been very serious profiteering in the article and the price has gone up again and again. There may be cases where the Board of Trade may desire to have some sort of modification, and my Amendment provides for that.
I beg to second the Amendment.
I would be quite prepared to accept my hon. and learned Friend's suggestion if I did not think we could meet this matter by other methods. As a matter of administration it would be easier for the Board of Trade in consultation with the Ministry of Food to keep in touch with their operations and to issue an Order at once including in the Schedule any article which has been de-controlled so that there should be no interval of time between the de-control by the Food Ministry and the issue of the Order by the Board of Trade. To do it in the form my hon. and learned Friend suggests would necessarily involve that consultation in any case, and would make administration more difficult for the reason that there are many articles for which only a partial control is held by the Ministry of Food, and it would be extremely difficult if my hon. and learned Friend's Amendment were adopted to know precisely the situation. Accordingly I would suggest to him that I should be allowed to carry out his purpose in the way I have suggested—that I should keep in touch with the Ministry of Food and arrange for putting the Profiteering Act in operation at once in connection with any article that is being decontrolled by the Food Ministry, in so far as we think it proper.
Coal does not come within the principal Act, but this would bring coal in. Last night we had a discussion on coal and the Board of Trade seemed to revel in the difference of price between coal here and in France. Control comes to an end on 31st August. If we are to have no Austumn Session we shall not be here to control prices, and it seems to me it would be a very wise precaution to accept this Amendment, for when coal control does come to an end the price may rush up with a bound, and there is likely to be considerable profiteering. I ask the right hon. Gentleman to reconsider the position, and give the House an assurance that we are not, after 31st August, going to be faced with the state of things I have suggested.
I have no doubt the Government will take all the precautions necessary in the matter when decontrol takes place. As my hon. and learned Friend says, the Amendment leaves the whole question subject to the discretion of the Board of Trade. Undoubtedly there will be an automatic application of the powers. I do not like my hon. and learned Friend to have any apprehension as to the future, and as to the course to be taken to prevent injury to the public.
I hope my hon. and learned Friend will persist in his Amendment; it is very reasonable indeed. I could not make any lucid reason of the intentions of the right hon. Gentleman for refusing the Amendment—except that the Board of Trade desires to keep greater powers in their own hands, and objects to legal restraints. Why should we not try the safeguard suggested in the Amendment in view of any rapid rise following on decontrol? I rather object to the qualifying words of the last sentence, "unless and so far as the Board of Trade shall otherwise order," but surely those words remove any objection the Board of Trade may have. It gives them the power to object to any article coming under the Profiteering Bill, and for the life of me I cannot see why this very reasonable Amendment should not be accepted. I am afraid that we must go to a Division unless we can have some better reasons for not accepting this proposal.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 50; Noes, 148.
Division No. 112.] AYES. [10.48 p.m. Barnes, Major H. (Newcastle, E.) Edwards, C. (Monmouth, Bedwellty) Hogge, James Myles Benn, Captain Wedgwood (Leith) Finney, Samuel Holmes, J. Stanley Brace, Rt. Hon. William Galbraith, Samuel Hope, Lt.-Col. Sir J. A. (Midlothian) Briant, Frank Grundy, T. W. Jones, G. W. H. (Stoke Newington) Bromfield, William Guest, J. (York, W. R., Hemsworth) Jones, William Kennedy (Hornsey) Carter, W. (Nottingham, Mansfield) Hayday, Arthur Kenworthy, Lieut.-Commander J. M. Davison, Sir W. H. (Kensington, S.) Hirst, G. H. Lawson, John J. Locker-Lampson, G. (Wood Green) Parkinson, John Allen (Wigan) Walsh, Stephen (Lancaster, Ince) Loseby, Captain C. E. Raffan, Peter Wilson Walton, J. (York, W. R., Don Valley) Lunn, William Richardson, R. (Houghton-le-Spring) Williams, Aneurin (Durham, Consett) Maclean, Neil (Glasgow, Govan) Royce, Gilliam Stapleton Williams, Col. P. (Middlesbrough, E.) Maclean, Rt. Hn. Sir D. (Midlothian) Scott, A. M. (Glasgow, Bridgeton) Wilson, W. Tyson (Westhoughton) Malone, Lieut.-Col. C. L. (Leyton, E.) Seddon, J. A. Wood, Major M. M. (Aberdeen, C.) Murray, Dr. D. (Inverness & Ross) Short, Alfred (Wednesbury) Young, Robert (Lancaster, Newton) Myers, Thomas Sitch, Charles H. Newman, Colonel J. R. P. (Finchley) Swan, J. E. TELLERS FOR THE AYES.— O'Grady, Captain James Thomas, Brig.-Gen. Sir O. (Anglesey) Sir H. Nield and Mr. Hurd. Palmer, Charles Frederick (Wrekin) Thorne, G. R. (Wolverhampton, E.)
NOES. Adair, Rear-Admiral Thomas B. S. Gibbs, Colonel George Abraham Nicholson, Reginald (Doncaster) Addison, Rt. Hon. Dr. C. Gilmour, Lieut.-Colonel John Oman, Charles William C. Agg-Gardner, Sir James Tynte Goff, Sir R. Park Parker, James Ainsworth, Captain Charles Grant, James A. Parkinson, Albert L. (Blackpool) Archer-Shee, Lieut.-Colonel Martin Greene, Lieut.-Col. W. (Hackney, N.) Parry, Lieut.-Colonel Thomas Henry Atkey, A. R. Greenwood, William (Stockport) Perkins, Walter Frank Baird, John Lawrence Gregory, Holman Perring, William George Baldwin, Stanley Greig, Colonel James William Pollock, Sir Ernest M. Balfour, George (Hampstead) Hacking, Captain Douglas H. Pratt, John William Barnett, Major R. W. Hall, Lieut.-Col. Sir F. (Dulwich) Pulley, Charles Thornton Barnston, Major Harry Harmsworth, C. B. (Bedford, Luton) Purchase, H. G. Bell, Lieut.-Col. W. C. H. (Devizes) Haslam, Lewis Rees, Sir J. D. (Nottingham, East) Bigland, Alfred Hennessy, Major J R. G. Richardson, Alexander (Gravesend) Boscawen, Rt. Hon. Sir A. Griffith- Henry, Denis S. (Londonderry, S.) Roberts, Rt. Hon. G. H. (Norwich) Breese, Major Charles E. Herbert, Denis (Hertford, Watford) Roberts, Sir S. (Sheffield, Ecclesall) Bridgeman, William Clive Hilder, Lieut.-Colonel Frank Rose, Frank H. Brown, Captain D. C. Hinds, John Roundell, Colonel R. F. Brown, T. W. (Down, North) Holbrook, Sir Arthur Richard Sanders, Colonel Sir Robert A. Bruton, Sir James Hope, James F. (Sheffield, Central) Seely, Major-General Rt. Hon. John Buckley, Lieut.-Colonel A. Hopkins, John W. W. Shaw, Hon. Alex. (Kilmarnock) Casey, T. W. Hopkinson, A. (Lancaster, Mossley) Shortt, Rt. Hon. E. (N'castle-on-T.) Chadwick, R. Burton Horne, Sir R. S. (Glasgow, Hillhead) Smith, Harold (Warrington) Child, Lieut.-Colonel Sir Hill Hotchkin, Captain Stafford Vere Sprot, Colonel Sir Alexander Clay, Lieut.-Colonel H. H. Spender Hunter-Weston, Lieut.-Gen. Sir A. G. Stanley, Major H. G. (Preston) Coates, Major Sir Edward F. Inskip, Thomas Walker H. Steel, Major S. Strang Cockerill, Lieut.-Colonel G. K. Jodrell, Neville Paul Sugden, W. H. Colfox, Major Wm. Phillips Johnstone, Joseph Sutherland, Sir William Conway, Sir W. Martin Joynson-Hicks, Sir William Sykes, Colonel Sir A. J. (Knutsford) Courthope, Major George L. Lane-Fox, G. R. Talbot, G. A. (Hemel Hempstead) Cowan, D. M. (Scottish Universities) Law, Rt. Hon. A. B. (Glasgow, C.) Terrell, Captain R. (Oxford, Henley) Craig, Colonel Sir J. (Down, Mid) Lewis, Rt. Hon. J. H. (Univ., Wales) Thomas, Sir Robert J. (Wrexham) Davidson, Major-General Sir J. H. Lindsay, William Arthur Thomson, F. C. (Aberdeen, South) Davies, Sir David Sanders (Denbigh) Lloyd-Greame, Major Sir P. Thorpe, Captain John Henry Davies, Sir Joseph (Chester, Crewe) Lort-Williams, J. Wallace, J. Davies, Thomas (Cirencester) Lyle, C. E. Leonard Waring, Major Walter Dawes, Commander Lynn, R. J. Wheler, Lieut.-Colonel C. H. Dewhurst, Lieut.-Commander Harry McLaren, Hon. H. D. (Leicester) White, Lieut.-Col. G. D. (Southport) Dixon, Captain Herbert McLaren, Robert (Lanark, Northern) Whitla, Sir William Doyle, N. Grattan Mallalieu, F. W. Williams, Lt.-Com. C. (Tavistock) Edgar, Clifford B. Marriott, John Arthur Ransome Williamson, Rt. Hon. Sir Archibald Edge, Captain William Moles, Thomas Wilson, Daniel M. (Down, West) Edwards, Major J. (Aberavon) Mond, Rt. Hon. Sir Alfred M. Wilson, Rt. Hon. J. W. (Stourbridge) Elliot, Capt. Walter E. (Lanark) Moore-Brabazon, Lieut.-Col. J. T. C. Wood, Sir H. K. (Woolwich, West) Eyres-Monsell, Commander B. M. Moreing, Captain Algernon H. Wood, Sir J. (Stalybridge & Hyde) Farquharson, Major A. C. Morrison, Hugh Worthington-Evans, Rt. Hon. Sir L. Ford, Patrick Johnston Munro, Rt. Hon. Robert Young, Lieut.-Com. E. H. (Norwich) Forrest, Walter Murray, Lt.-Col. Hon. A. (Aberdeen) Foxcroft, Captain Charles Talbot Murray, John (Leeds, West) TELLERS FOR THE NOES.— Fraser, Major Sir Keith Murray, Major William (Dumfries) Lord E. Talbot and Mr. Towyn Fremantle, Lieut.-Colonel Francis E. Nall, Major Joseph Jones. Ganzoni, Captain Francis John C. Neal, Arthur
I beg to move, after paragraph S. 1 (7), to insert the words:
"S. 1 (10) … After the words 'apply to the sale,' insert 'to any person without the United Kingdom'"
The opinion is that the principal Act does not apply to a sale to a person here who is known to be wanting goods for export, but who may not, in fact, export the goods. The Section reads:
"Nothing in this Act shall apply to a sale of any article for export;"
so that a sale may be made ostensibly for export, which in point of fact does not
In spite of the finger post indicating the way to vote, without any reference to what goes on in the House, I shall certainly deem it my duty to the people who come before me and who I know so well from my long experience of these Committees, ought to have every possible protection the Act can give, to press the Amendment.
I beg to second the Amendment.
I realise that all the Amendments the hon. and learned Gentleman has proposed have been dictated by one object alone, namely, to improve the Bill and make it a more effective instrument for achieving the purpose for which it is intended. No one has given more arduous service to the State or the Central Committee. I am very grateful to him for the extreme interest he has taken in the whole of this Legislation. I am very much impressed with the suggestion he has made, but I cannot accept it. The reasons against it are overwhelming. It would make any article come under the Regulation with regard to export, except those which are sent direct to some person abroad. That means that you absolutely dislocate the whole business of people who are well-known exporting firms and buy for no other purpose. No manufacturer would sell to an exporter at the limited price in this country with the knowledge that what will happen immediately is that the exporter will turn it over to some person abroad at an enormously inflated value. He has to do exporting business himself or none at all. The Amendment, while on the face of it a very fair one, is really not practicable according to the conditions under which business is carried on.
Will the right hon. Gentleman give an assurance that when the Bill gets to another place he will put in words which will make it incumbent for goods bought for export to be in fact exported and not allowed to be sold in this country except under the provisions of the Act?
In the ordinary case a person who is dealing in such goods would be guilty of misrepresentation, which would be sufficient to annul the transaction if, on the representation that the is buying for export, he deals with it in the bounds of the country itself. The manufacturer who is selling his goods will be aware of the purpose for which the goods are being purchased, and he is not going to sell them at the same price to an inland consumer as to a person who is really only turning them over for export. Under such circumstances it must be plain that repetitions must be made to the buyer. I scarcely think it would be necessary to add words such as my hon. and learned Friend suggests, but I am perfectly willing to consider the whole matter with a view to seeing whether, there is any abuse.
Will the right hon. gentleman make inquiries in his own Department? I think he will then find that a very grave case is actually under purview at the present time.
I certainly will.
I was very much impressed with that part of my right hon. Friend's speech which criticised the views of my hon. and learned Friend It seems to me there is a via media. Surely it is possible that persons may get the benefit of this who bona fide intend to export but for some reason do not do so. If that is so, the point of my hon. and learned Friend is a real one. In commercial circles and businesses run on a very large scale contracts are made bonâ fide for export, but for some reason or other they may have to get rid of the goods, possibly perishable goods, because they cannot export them. In such a case that firm or person is going to be in a better position than somebody else who buys for home consumption. Surely that is wrong. I agree that the Amendment is far too wide and would defeat its own end, but I do ask my right hon. Friend to consider whether the words in the Schedule are not themselves too wide, and whether it does not open the door to the possibility of a person, either mala fide or bonâ fide, making purchases and contracts with the object of exporting, but who, whether from mala fides or bonâ fides, does not in fact export. I think there is a case which requires consideration, and I hope the right hon. Gentleman will consider it and recommend that steps should be taken whereby the Schedule may be slightly altered in another place.
I will do my best in the matter.
As I do not like walking the lobby for the sake of walking it I beg leave to withdraw the Amendment.
Amendment, by leave, withdrawn.
Motion made, and Question proposed, "That the Bill be now read the Third Time.—[ Sir R. Horne. ]
The proceedings on this stage of the Bill have not been unduly prolonged, as shown by the fact that you, Mr. Deputy Speaker, have not once exercised your power of selection of Amendments. So far as the Members who act with me are concerned, we pay our tribute to the President of the Board of Trade under conditions, as he will admit, of exceptional difficulty. He knows perfectly well, and so does my noble Friend the Patronage Secretary, that the demand which the Government made upon the House was a very heavy one in taking this measure to-day. So far as we are concerned we have not obstructed in any way. My right hon. Friend was a little hard on my hon. Friend the Member for one of the divisions of Hull (Lieut.-Commander Kenworthy). I think he rendered a very great service to the rights of private Members in this House, and I hope he will never lose his courage. When the time comes that he mixes a little more discretion with his undoubted energy and ability, he will be an admirable model for Members opposite when they are on this side, at some date which may be distant or near, as the fates may decide. What I really want to do is to emphasise the encroachment which the Government have made upon the indulgence of the House to-day. It is a sense of duty which compels me to place this on record. This Bill was finished yesterday in Committee. The second day's proceedings were not in our hands, and neither was the Bill as amended in Committee until we came down here. It is a Bill of great importance. Many more Amendments might be put on the paper with the genuine desire to improve the Bill from the standpoint of public interest. I cannot imagine what excuse there is, because it was known to the Department that the Act now on the Statute book would come to an end on Wednesday next, and it was necessary to get on with this Bill with the utmost expedition. The Bill should have been taken for Second Reading at a much earlier date. The Department was responsible, and though my right hon. Friend was not President of the Board of Trade at that time, no doubt with his usual gallantry and altruism, he will bear all the blame for it, but I suggest to his Department that that sort of thing should not happen again. It is not treating the House of Commons fairly. With that protest I leave it.
I do not know whether I should be in order in making an appeal to the Leader of the House with regard to the other Orders on the Paper. The next Order on the Paper—the National Health Insurance Bill—is one of great interest, with no real controversy in any partisan spirit about it, but the House cannot do justice to it at this time of night. Is it not possible for us by agreement to take it, say, next Tuesday? I do not think that the Home Rule Bill will go beyond eight o'clock on Tuesday. I feel sure that you will get the first Clause by that time. So far as we are concerned—I hope that on this occasion my Labour friends will allow me to speak for them—I am sure that with the friendly accommodation that has, on the whole, marked our relations with this Parliament, we can adjust it, and we might take the Scottish Bill—the Ejection, Suspensory Provisions Bill—which would take a very short time to get—[HON. MEMBERS: "No!"]—and I think that probably with good will we could get this other measure with a couple of hours' discussion next week.
I am certain no one could take exception to the tone of the remarks of my right hon. Friend, and I especially admire the peculiarly Scotch method by which he gave praise to one of his devoted followers. As to what he said about demands made on the House of Commons, I do think we ask a great deal in requiring these three Bills to go through to-day. It really is essential to go on with the other two Bills on the Order Paper. If it depended only on this House, my right hon. Friend's contention would be right; but it is necessary that they should become law before the adjournment, and it would not be fair to another place to send to them on Wednesday Bills which had to become law on Thursday. Members of the Government as well as Members of the House have had a trying Session, but we are anxious that the adjournment for Whitsuntide should not be postponed.
I cannot admire the agility with which the right hon. Gentleman (Sir D. Maclean) switched off in most disorderly fashion from the Motion before the House in order to discuss other matters. Before the Bill goes from this House I would like to say, from knowledge of what has taken place in the Committee upstairs and in this House, that we have not obstructed in any sense of the word, and that we really desired to make this Bill as efficient as possible, because we were aware of the grievances outside, and because we anew still better that unscrupulous persons were increasing the unrest outside and adding to the troubles of the Government. I am of opinion that the original Act, though it may not have had enormous results from the point of view of fines or findings of tribunals, has had a deterrent effect, and I am convinced that a remarkably different condition of things would have prevailed if the Act had not been passed. I am thankful to the President of the Board of Trade for his very kind references to myself and my work. I appreciate those references very highly indeed. It is all I desire, that when one gives up professional work to make an Act of this sort effective, one's action is appreciated by members of the Government.
I served on the Standing Committee which considered this Bill. There is one phase of this question which has never yet been referred to, but which is a very serious matter so far as the working class population is concerned. From time to time the maximum price of a commodity is made public. That price instantly becomes the price of all grades of the commodity in all parts of the country and the public have to pay the price for inferior articles. I wonder whether, even at this stage, the right hon. Gentleman can do anything by regulation or otherwise to protect the community from the imposition.
I am afraid the Government have been very unfortunate in the arrangement of business for last year and this year with regard to the Profiteering Bills. I think the hon. Member for Ealing (Sir H. Nield) was correct in saying that every Member of the House wanted to assist in making the Bills as effective as possible and there are three objects of the Profiteering Bill. The first is to find out and punish those who are guilty of profiteering, the second is to try and prevent people from attempting to profiteer, and the third, and this is a very important point, is to convince the people that many cases of alleged profiteering are not profiteering at all. The House is anxious to assist the Government in regard to this matter as it knew that throughout the country high prices and profiteering created more indignation than anything else. What happened last year. We had a Bill brought in and rushed through Committee between a quarter to four o'clock in the afternoon and six o'clock next morning and the Report stage was taken the same day at a quarter to four, and the Third Reading after, and the whole thing finished at eleven o'clock. The very fact that the Bill was rushed through is proved this year by at least two or three Amendments which were proposed by private Members but which could not be properly considered by the Government who had to say, "We have no time, this is the 13th August; we must get this through and you must take the Bill or leave it." Those Amendments were not considered. If there had been more time they would have been, and we should not have to wait until this Bill to have Amendments proposed by private Members actually introduced by Government into their Bill this year. Now we have got this Bill with the Committee stage finished yesterday afternoon, and those of us who were not on the Committee had no idea until we got the Bill that the Committee stage had been finished and that it was coming on this afternoon. We had no opportunity of putting Amendments down, and those Amendments we tried to put forward had to be handed in in manuscript, with no opportunity for the right hon. Gentleman the President of the Board of Trade to consider them. The result is that again we have a Profiteering Bill rushed through without the combined wisdom of the whole House being brought to bear on the subject. No one wants to vote against this Bill, and we all desire to assist in stopping profiteering. Both last year and this year the House has not been given a fair chance to deal with the matter.
An hon. Member said just now that this House could rightly disclaim all responsibility for this Bill because they had not any chance of adequately dealing with it. I think what we have done is to take the whole responsibility of profiteering from the Profiteering Committees and Central Committee and put it on the shoulders of the President of the Board of Trade. They are good broad shoulders, and he is very heroic to tackle the responsibility. I have got every confidence in the right hon. Gentleman, but I have no confidence in the Board itself. I do not anticipate that the President will remain there very long. I saw in the evening Press recently that the Prime Minister was reported to have said that he regarded the President of the Board of Trade as the ablest of all his colleagues. I have no doubt that foreshadows promotion. The Board of Trade has got to bear the responsibility of publication of proceedings, and the country will want to see how it is going to discharge that duty.
There is a tendency to concentrate all powers of interference with private trade in the hands of the Board of Trade without control by this House. The President has constantly said that it is subject to criticism, and that surely that is sufficient, but if an hon. Gentleman gets up at Eleven o'clock with a view to asking an innocent question, we see mysterious movements in the offices of the Government and the House melts away and is counted out. Question time is a very limited opportunity for criticism; the opportunities of private Members for criticising the Government are very limited and are being increasingly limited by the action of the Government themselves. The tendency of this Bill will be to create rings and trusts in this country, which will put prices up instead of keeping them down. For the first time, with the assistance of the Coalition Liberals, we have got a tariff introduced into the Budget, 33⅓ per cent. on a number of articles which were first taxed for the purposes of war; in addition to that, the President of the Board of Trade is seeking powers to put an embargo on imports; and now we have got a Bill which enables associations of traders to fix their own prices which they are going to charge consumers, and I say that the joint effect of those three things is likely to be in the direction of creating rings and defeating the very object the Government have in bringing the Bill forward.
Question put, and agreed to.
Bill read the Third time, and passed.
National Health Insurance Bill
As amended ( in the Standing Committee ), considered.
NEW CLAUSE (
"Section forty-six (except sub-section (8) of the Act of 1911 and sections twenty-four and twenty-five of the Act of 1918 (which relate to men in the naval, military, and Air Force service of the Crown) shall cease to have effect, and for the purpose of supplying each such man with the benefits provided under the National Health Insurance Acts, 1911 to 1920, at the full rate after he returns to civil life and becomes an employed contributor the prescribed sum (which may vary in accordance with the state of the man's health) shall be paid by the Admiralty or Army Council and credited to the appropriate approved society if he joins an approved society within two years after his return to civil life; and if he proves that the state of his health is such that he cannot obtain admission to an approved society he may, if he so elects, on making application to the Minister of Health in the prescribed manner and time, become, subject to regulations to be made by the Minister of Health after consultation with the Admiralty and Army Council, entitled to benefits (other than additional benefits) provided under the aforesaid Acts at the full rate, the cost of which benefits shall be payable out of the Navy and Army Insurance Fund (which fund shall be kept in a solvent condition by payments to be made by the Admiralty and Army Council) and such benefits shall be administered by such bodies and in such manner as may be prescribed by such regulations as aforesaid, and any contributions paid under the aforesaid Acts by or in respect of him shall be paid into that fund."—[ Mr. G. Locker-Lampson. ]
Brought up, and read the first time.
I beg to move, "That the Clause be read a second time."
I should like to add to what my right hon. Friend, the Member for Peebles (Sir D. Maclean) said a short time ago, that I am very sorry we have to take this Bill on report so late at night. On the last occasion this Bill was begun to be read a second time at midnight. After all, the Ministry of Health is a very important Ministry, and my right hon. Friend the Minister of Health is a very important and powerful Minister, and I should have thought that he could have brought pressure to bear on the Whips and the Patronage Secretary to allow him to bring in his measure at a rather more reasonable hour. It is so late now that I propose to move my new Clauses in just a few sentences. This first one relates to men belonging to His Majesty's Forces, and I should like to mention what the present position is. If a man who is a member of His Majesty's Forces is a member of an approved society, his society claims 3d. per week for every single man from the Ministry of Health, which sends the claim to the Army Council, or to the Admiralty, or to the Air Council. Those three Departments go through the claims, make up their minds whether or not the claim is good, and if so they send the 3d. to the Ministry of Health, which credits the approved society with the 3d. for each person, and then, on his discharge, that man comes into full benefit. That is an extremely complicated and roundabout way of doing things. It means an enormous quantity of additional clerks, it means millions of entries, thousands of forms, a tremendous extra amount of clerical work and accountancy, and all of it absolutely unnecessary. This new Clause proposes to save a great deal of money and a great deal of trouble. All it proposes to do is this, that, instead of all that very complicated machinery, the Admiralty, the Army Council or the Air Council, at the time when the man gets his discharge, should pay a definite sum of money over, which is actuarially the amount that ought to be paid over, to the approved society, and that that man should immediately come into full benefit on his discharge. Exactly the same thing will happen. Directly a man leaves the Army, Navy, or Air Force and returns as a member of his approved society, he will come into full benefit. My Amendment proposes that, instead of these weekly payments of 3d. being paid, claimed, investigated, and passed through the hands of various clerks and officials, as well as through the War Office, a definite sum should be paid on the man's discharge, and that he should then come into full benefit. The Amendment must lead to a good deal of diminished cost. Every approved society is allowed 1s. 80½d. per year for administering the benefit of every member who is in His Majesty's Forces. That would be saved, and in addition there would be saved all the expenses of the Audit Department and all the officials who are engaged week by week dealing with the Army, Navy and Air Force. It is already done under the Unemployment Insurance Bill. On the last day of the Committee on that Bill the Government put down a new Clause under which the three great Services, the Army, Navy and Air Force, do not pay any sums week by week in respect of men who are members of approved societies, but wait until the man is discharged, and then pay a lump sum, the man coming immediately into full benefit. I do not see why you should have two different systems for two benefits which are going to be administered to a great extent by the same bodies. Therefore, I very much hope that my right hon. Friend will accept this new Clause.
I beg to second the Motion. I am not quite sure whether the right hon. Gentleman in charge of this measure is aware of the Amendment, very similar to that proposed by my hon. Friend, which we inserted in the Unemployment Insurance Bill the last day of the Committee stage. I strongly support this new Clause, which will lead to considerable simplification and will assimilate the two Bills, and I hope that the right hon. Gentleman will accept it.
I should like to say, on behalf of the Government, that it was with great reluctance that we had to bring this Bill on at this time of night. We all know the unexpected demands which have been made upon the time of the House since this Bill was put down. It must be brought into law by next Thursday. There is not a single day to spare, and that is, I am sure, sufficient reason for bringing it forward now. I am afraid my hon. Friend who moved this new Clause has really not considered what the effect would be. There is a great difference between this proposal and that in the Unemployment Bill. The scheme of the two Bills, especially as to finance, is entirely different. The benefit which a man receives from the Unemployment Fund is limited according to his contributions. Here we have a complicated system of finance with an elaborate Reserve Value scheme, carrying over benefits to a late period in life. If you were to adopt the suggestion here, immediately a man had joined the Forces, he would lose his membership of a society. If this new Clause were carried, the wife of a man in the Forces would not be entitled to maternity benefit, which I am sure is not in the least desired by the mover. In the second place, supposing the man at the termination of his period of service had suffered disability, and could not be admitted to an approved society, except at an increased rate of contribution, he would suffer a further disability. This secures his continuation in his society, where he really becomes entitled to any additional benefit his society may be able to provide, and I am glad to see a great prospect before us of societies being able to provide additional benefit. It would be a serious consideration to the man concerned, and I am sorry, therefore, I cannot accept the proposal.
I do not think the right hon. Gentleman could have read this Clause, because it meets the whole of those points. But it is quite impossible to go into this to-night, though I am quite sure this reform will be carried out at no distant date. However, I ask leave to withdraw the proposed Clause.
This emphasises the extreme difficulty under which we are working. No one would accuse the hon. Gentleman who has just spoken of wishing to introduce unnecessary suggestions. He has been one of the most helpful critics. This is the fourth Bill introduced in recent times which we have had to consider in the middle of the night, because of some urgent need for it to pass. This new Clause seems to me to be a matter which deserves the careful consideration of those who wish to see the insurance scheme work well, and I must protest against going on to-night, with the prospect of another Bill coming on afterwards.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Amendment of s. 32 of Act of 1911.)
The following sub-section shall be added to section thirty-two of the Act of 1911:—
(3) Where such an insured person, being a member of an approved society, ceases to be permanently resident in the United Kingdom by becoming a resident in a British possession, and is unable to secure any of the advantages which may be provided under the foregoing provisions of this section, his approved society shall, if he has been an insured person and a member of an approved society for the five years last past, pay to him the sum of two pounds on application being made within twelve months of such cessation.—[ Mr. G. Locker-Lampson. ]
Brought up, and read the First time.
I beg to move "That the Clause be read a Second time."
I do not know whether it is worth while at this hour to go on moving Clauses, but this is the last one I desire to bring forward. Here, really, you have to deal with a grievance. The object of this new Clause is to enable members of an approved society who cease to be members of that society, and who go to a British Possession, to receive a surrender value for the contributions they have paid, amounting to not more than £2. At the present moment, if an ordinary member of an approved society goes out of insurance, and ceases to be employed, but remains in this country, he gets a surrender value for the contributions he has paid in the shape of not less than one year's full benefit. That is a great privilege. But if that man, instead of remaining in this country, happens to go to a British Possession, he gets nothing at all. That was never intended to be the case by the National Insurance Act of 1911. Under Section 32 of the original Act, a special provision was made, whereby a member of an approved society who ceased to be a member of that society, and went to a British Possession, should get a surrender value in the shape of benefits in another society abroad, but that Section was so hedged round with restrictions that I do not believe there has been a single case in which a member of an approved society leaving this country and going to a British Possession has received a single farthing in benefit, and I have been in communication with a great many friendly societies on the point. Parliament in 1911 passed Clause 32 in order to enable those people who went to a British Possession to get a surrender value for contributions made, and therefore I think it is extremely unfair that they have been unable to get a single farthing. The reason I propose £2 as the surrender value is because a full year's benefit amounts to £2, and the contributions under this Bill of the employer and the insured person amount to about £2 3s. 4d., so that I am really underestimating the surrender value, and am not counting the State contribution. The right hon. Gentleman voted for the Clause himself in 1911. He meant to give these people a surrender value when they went to a British Possession. Not a single one has got it. Why do you not carry out the intention of Parliament in 1911?
I beg to second the Motion. The whole machinery of Parliament has completely broken down. We are legislating now under a system of groups, only the Government is the chief group, and the House of Commons occupies a position of no power at all. I wish strongly to support what has been said by the hon. Gentleman who moved this Clause. I say this with particular reference to Scotland. There is year after year from Scotland a great emigration to the British Dominions Overseas. Many of these men have been members of approved societies in this country. There are many who to my personal knowledge are suffering under the disadvantages to which my hon. Friend referred. I do hope, particularly in view of the fact that the right hon. Gentleman in the earlier Bill was himself in favour of some such Amendment as this, that he will be able to accept the Sub-section which I now second.
The hon. and gallant Gentleman has not studied the section of the original Act with the care usually manifested by him. The original section deals with a wholly different proposition. It was designed to secure that where a man went to our different Possessions overseas where there was an insurance scheme in operation which he might join he would be able to carry with him a certain transfer value that would enable him to continue his insurance on more advantageous terms than otherwise. In this case he is not continuing to be an insured person. He is going to a place where there is no insurance scheme. The suggestion here is of a surrender value which is an entirely different proposition. Usually you do not base your insurance scheme on individual accounts; you base it on the value of the payment to the approved society of the equal contributions of all its members under all the conditions of a mutual insurance scheme. Therefore if you are to try and segregate individuals in this scheme and attach to each the surrender value which they could obtain not in this emergency only, but in many others equally fair it may be, you would destroy the whole conditions of the insurance scheme. My hon. Friend has quite misunderstood the purpose of the original Act.
Is it or is it not the fact that this section has been absolutely a dead letter and that nobody has received a farthing under it?
Whenever a man has gone to another place where an insurance scheme is in operation he has taken a transfer value with him. When a man goes away for his own benefit to where there is no insurance scheme he ceases to be an insured person. Whatever he may have contributed to the common pool is shared amongst his fellow-men. In order to secure that, the benefits which may have arisen in this respect, owing to his contributions, are carried to a separate suspensory account, and are not shared equally by members of the society there and then, but only thereafter when additional benefits are considered.
I do not think the right hon. Gentleman has gathered quite what are the points raised by my hon. Friend. In Section 32 of the original Act including two Sub-sections, one of which provides that if a man goes to a British Possession where there is insurance benefit he is entitled to the transferable value of his contributions, the other Sub-section deals with arrangements in foreign and other places outside those referred to in the previous Sub-section. It is proposed by the mover of the Amendment that in cer- tain cases people immigrating should be entitled to take the surrender value of their insurance—a not undesirable thing if it can be done. As my hon. and gallant Friend (Lieut.-Colonel Murray) has said, a great many people emigrate from Scotland, people who have taken considerable trouble to insure, thrifty people, with unsatisfied ambitions, who have gone abroad to make a home for themselves. The hon. Member is trying to find a way to give a man of this class the fruits of his foresight and sacrifice. That is the position. The right hon. Gentleman says: "Oh, but that is impossible, because it is an insurance scheme, and you cannot give surrender value to anyone who has taken out an insurance policy"! First of all, I am not sure that that is so. It is quite common in several forms of insurance to take out a surrender value. This very Section to which my hon. Friend refers has a somewhat analogous provision in it.
You refer to the deposit contributor?
Why is it possible to do this with the deposit contributor and not in the other?
There is this difference. The deposit contributor takes the value of the contributions which he himself has made, and which are credited to his individual account; but a member of an insurance society, with many thousand others, pays in to the common fund that you may distribute the risks equally. The deposit contributor is much the same as the man who has something in his private safe.
12.0 M.
Of course, the deposit contributor is a man who co-ordinates his own savings for his own benefit. For some reason he was excluded from insurance. That is the whole principle of this Bill. The point of my hon. Friend was that the same principle would be followed by giving to the insured person the right to a surrender value. Why cannot there be a calculation made as to how much an insured person has paid in so that he shall get the benefit of it? I submit that that is a point of substance, and just the sort of point with which the House is entitled to deal. I remember very well this Section 32 and the Act of 1911. The right hon. Gentleman naturally was as much interested in it as I was. I have in my hand a document on "The National Insurance Act," published by the National Conservative Union. It points out that this Section 32 was never discussed in Committee. That is how positions like the present arise. It was our fault! [HON. MEMBERS: "Hear, hear!"] Well, do not you repeat our fault! I will read the Motion that was made. I am not sure he did not tell in the Division on the Bill in 1911. This is the document that precedes it
"It was felt that while the objects of the Bill were good the work of adjusting its provisions to the necessities of industry and the occupations of the people of the country had been camped and unless further time could be secured the hardship and injustice of many of its provisions would seriously hamper its work."
In consequence of that Mr. Forster and the Noble Lord and many hon. Members I see before me voted for the following Amendment:
"to leave out the word 'now' in order to insert the words 'while approving the object of National Insurance this House is of opinion that public funds and individual contributions will not be used to the best advantage of those most closely affected, and that as the Bill has neither been adequately discussed in this House nor fully explained to the country it would he in its present form unequal in its operation.'"
It has been found in many respects to have been a just Amendment because the Clause passed in Committee is now under review, and there seems a good deal to be said in criticism of it. This is a constructive Amendment. Is it wise at twelve o'clock to go on with it? Would it not be much wiser to take it on Tuesday, when we are going to proceed with a Bill which everyone knows is perfectly futile and when we can put what little constructive thought we have into it?
The right hon. Gentleman says we cannot do it under the insurance scheme. What about the married woman who goes out of insurance? When a woman who is a member of an approved society marries she gets a surrender value. What financial difference would it make under the scheme supposing a woman married and then went out to a British Possession or went out to a British Possession and then married? It comes to exactly the same thing as far as the finances of the Bill are concerned. Therefore, under the present system even if you are an insured person and leave insurance you get a sur- render value in the case of a woman who marries. I am sure this is a good Clause, and I am sure you ought not to take contributions year after year from people who may have to go to British Possessions and give them no advantage for all the money they have put in.
In my opinion, if the right hon. Gentleman does not accept the Clause he is putting a direct penalty on emigration within the Empire, and I hope he will see his way to do so. Perhaps he has not sufficiently considered the Clause and its financial effect to be able to accept it to-night. Can he tell the House that before the Bill goes up to another place favourable consideration will be given to the matter?
The hon. and gallant Gentleman has exhausted his right.
A woman who marries does not get surrender value.
I come from a part of the country where there is a very serious crisis in a particular industry, and probably several thousands of miners will be compelled to emigrate for 5, 10 or 20 years. As I understand the Bill, they will have paid their contributions for a considerable time. It has been clearly proved, in the case of married women and in other cases, that it is possible to deal with this question at present. I would ask the right hon. Gentleman to give the matter further consideration.
In every case where a woman was married prior to a particular date there is a credit balance paid to her by approved societies. I am speaking from inside knowledge. I am the secretary of an approved society, and we have paid out in hundreds of cases such as the hon. Member mentions. It is a distinct wrong that is attempted to be perpetrated on a man who may go abroad who has contributed for many years, and I think there ought to be something included in the Bill which will allow for a surrender value for the money he has paid.
It was considered a great scandal years ago when industrial insurance societies did not give any surrender value for lapsed policies. Certain societies made enormous sums which were nothing less than swindling the poorer classes of insurers. It is, of course, true that the case of an insured person is different from a depositor, but at the same time a man pays in money for a certain period, and it is to be expected that he would draw some benefit from that in years to come. He relieves the fund of a certain liability by going abroad. Whether the actual sum of £2 is right or not is another matter, but on principle it seems to me grossly unfair that there should be no allowance whatever made to a man who before his time comes to die goes out of the country and loses all the contribution he has made.
I trust the right hon. Gentleman will reconsider his position. When the 1911 Act was passed it was certainly promised that any insured contributor going to a British Possession would be approved on being transferred to another society in that British Possession as soon as arrangements were made. I remember asking the hon. and gallant Gentleman (Captain Benn), when he was in charge of the Insurance Bill, whether arrangements had been made with British Possessions to carry this intention into effect. He always replied that arrangements were going to be made with British Possessions to give emigrants the benefit of retaining money they had contributed in this country. Now that we have heard nothing more about it, I presume that it has been found impossible to make any arrangements with the British Possessions so that the money paid to approved societies in this country can be transferred to approved societies in British Possessions. If that has been found impossible, and the Government find it impossible to carry out the intention of Parliament in 1911, I do not think it is asking very much that the insurance fund should contribute the small sum of £2 to repay the contributors who have paid far more than that in this country, and who are now removing to another part of the British Empire. I shall certainly support the Amendment if it is pressed to a Division.
By leave of the House I will reply to the question, as to the Reserve Suspense Fund which arises out of this class of case. Provisions are made in the financial scheme of the Bill for enabling persons who enter into insur- ance later in life than the age of 16, or who have to re-enter insurance to receive certain benefits; but it would upset the whole financial scheme for assisting these classes of insured persons if we accepted this Amendment. I have every sympathy with a person who moves to the Colonies, and we are only too glad to do everything possible for them.
You are doing nothing.
I cannot accept the Amendment, because it would upset the whole financial scheme. I will look into the fund, and if I find we can do anything for these men out of the fund I will make a proposal later, but as this Amendment would upset the financial scheme of the Reserve Suspense Fund, others for whom it is intended would suffer a real hardship.
I should like to understand exactly what my right hon. Friend is proposing. Does he mean that he will carefully think out an Amendment which he will put on the Paper in another place? Otherwise I am not satisfied, and must press the matter.
I will get a report from the actuaries as to the position of the Reserve Suspense Fund created out of these cases, but I cannot make any promise until I have received and considered that report.
Question put, "That the Clause be read a second time."
The House divided: Ayes, 43; Noes, 93.
Division No. 113.] AYES. [12.15 a.m. Archer-Shee, Lieut.-Colonel Martin Griffiths, T. (Monmouth, Pontypool) Myers, Thomas Atkey, A. R. Grundy, T. W. Nall, Major Joseph Barnes, Major H. (Newcastle, E.) Guest, J. (York, W. R., Hemsworth) Newman, Colonel J. R. P. (Finchley) Benn, Captain Wedgwood (Leith) Hayday, Arthur Rose, Frank H. Brace, Rt. Hon. William Herbert, Dennis (Hertford, Watford) Royce, William Stapleton Briant, Frank Hirst, G. H. Steel, Major S. Strang Brittain, Sir Harry Holmes, J. Stanley Thorne, G. R. (Wolverhampton, E.) Bromfield, William Hope, Lt.-Col. Sir J. A. (Midlothian) Thorpe, Captain John Henry Brown, Captain D. C. Johnstone, Joseph White, Lieut.-Col. G. D. (Southport) Carter, W. (Nottingham, Mansfield) Kenworthy, Lieut.-Commander J. M. Williams, Lt.-Com. C. (Tavistock) Cowan, D. M. (Scottish Universities) Lunn, William Wilson, W. Tyson (Westhoughton) Elliot, Capt. Walter E. (Lanark) Maclean, Nell (Glasgow, Govan) Entwistle, Major C. F. Morgan, Major D. Watts TELLERS FOR THE AYES.— Fremantle, Lieut.-Colonel Francis E. Murray, Dr. D. (Inverness & Ross) Mr. Godfrey Locker-Lampson and Goff, Sir R. Park Murray, John (Leeds, West) Lieut.-Colonel Arthur Murray. Lloyd-Greame, Major Sir P. Murray, Major William (Dumfries)
NOES. Adair, Rear-Admiral Thomas B. S. Gilmour, Lieut.-Colonel John Parry, Lieut.-Colonel Thomas Henry Addison, Rt. Hon. Dr. C. Glyn, Major Ralph Pollock, Sir Ernest M. Agg-Gardner, Sir James Tynte Grant, James A. Pratt, John William Ainsworth, Captain Charles Greene, Lieut.-Col. W. (Hackney, N.) Pulley, Charles Thornton Baird, John Lawrence Greenwood, William (Stockport) Purchase, H. G. Baldwin, Stanley Greig, Colonel James William Rees, Sir J. D. (Nottingham, East) Barnett, Major R. W. Hacking, Captain Douglas H. Roberts, Rt. Hon. G. H. (Norwich) Barnston, Major Harry Hall, Lieut.-Col. Sir F. (Dulwich) Roundell, Colonel R. F. Bell, Lieut.-Col. W. C. H. (Devizes) Hanna, George Boyle Sanders, Colonel Sir Robert A. Boscawen, Rt. Hon. Sir A. Griffith- Henry, Denis S. (Londonderry, S.) Seely, Major-General Rt. Hon. John Bowyer, Captain G. E. W. Hinds, John Shaw, Hon. Alex. (Kilmarnock) Brown, T. W. (Down, North) Holbrook, Sir Arthur Richard Sprot, Colonel Sir Alexander Bruton, Sir James Hope, James F. (Sheffield, Central) Stanley, Lieut.-Colonel Hon. G. F. Buckley, Lieut.-Colonel A. Hotchkin, Captain Stafford Vere Sugden, W. H. Casey, T. W. Hunter-Weston, Lieut.-Gen. Sir A. G. Sutherland, Sir William Coates, Major Sir Edward F. Jodrell, Neville Paul Talbot, G. A. (Hemel Hempstead) Cockerill, Lieut.-Colonel G. K. Kerr-Smiley, Major Peter Kerr Thomas, Sir Robert J. (Wrexham) Colfox, Major Wm. Phillips Law, Rt. Hon. A. B. (Glasgow, C.) Thomson, F. C. (Aberdeen, South) Courthope, Major George L. Lindsay, William Arthur Thorpe, Captain John Henry Craig, Colonel Sir J. (Down, Mid) Lort-Williams, J. Wallace, J. Davidson, Major-General Sir J. H. Loseby, Captain C. E. Waring, Major Walter Davies, Sir Joseph (Chester, Crewe) Lyle, C. E. Leonard Wheler, Lieut.-Colonel C. H. Dawes, Commander Lynn, R. J. Whitla, Sir William Dewhurst, Lieut.-Commander Harry McLaren, Robert (Lanark, Northern) Wilson, Daniel M. (Down, West) Edge, Captain William Mallalieu, F. W. Wilson, Colonel Leslie O. (Reading) Edwards, Major J. (Aberavon) Mond, Rt. Hon. Sir Alfred M. Wood, Sir H. K. (Woolwich, West) Eyres-Monsell, Commander B. M. Moore-Brabazon, Lieut.-Col. J. T. C. Wood, Sir J. (Staiybridge & Hyde) Falcon, Captain Michael Munro, Rt. Hon. Robert Wood, Major M. M. (Aberdeen, C.) Farquharson, Major A. C. Neal, Arthur Forrest, Walter Nicholson, Reginald (Doncaster) TELLERS FOR THE NOES.— Fraser, Major Sir Keith Parker, James Lord Edmond Talbot and Mr. Ganzoni, Captain Francis John C. Parkinson, Albert L. (Blackpool) Towyn Jones. Gibbs, Colonel George Abraham
NEW CLAUSE.—(Appeals by Medical practitioners)
(1) Any medical practitioner aggrieved by a decision of the Minister, or of any special body through which the powers and duties of the Minister, under section fifteen, subsection (2) (b), of the Act of 1911, are exercised, to remove his name from any list of medical practitioners may appeal against the decision to the High Court within the time, and in the manner, and on the conditions directed by the rules of court.
(2) The cost of any such appeal shall be in the discretion of the court, and no appeal shall be allowed from any order or decision of the court in any such appeal.—[ Captain Elliot. ]
Brought up, and read the First time.
I beg to move "That the Clause be read a Second time."
The right that we ask from the Minister is of such an elementary nature that I am not without hope that he will see his way to accede to our request. This is a right granted to medical practitioners in the 1911 Act which is apparently being withdrawn from them under this Act. If they were struck off the panel they had a right of appeal under Sub-section 15 ( b ) of the 1911 Act. All the right of appeal they have now is to the Minister of Health. They have no right of appeal to any legal body in this country. The position is this: if a medical practitioner, who gets on the panel by statutory right, is considered to be conducting himself improperly, his case is brought before a small sub-committee of doctors, then before the insurance committee, and from that the appeal lies to the Minister of Health, and if these authorities are against him, then his name is struck off the panel, and he is debarred from the treatment of what is already a majority of the population of this Kingdom and what will, if the dependents are brought within the scheme of the Act, become an overwhelming majority of the people. We do not consider it is fair that the bureaucracy should have this tremendous power over a medical practitioner, on the ground first that it will lead to a stereotyping of medical practice. Nobody will risk embarking on some individual line of treatment if he knows that any failure of this treatment will be brought before a committee of what are, after all, his trade competitors. If they disapprove of his action the case comes before the insurance committee, who will probably decide against him; and then the Minister of Health will find that he has got to back up his committee. Thus a man's career may be wrecked simply because he has embarked on some line of treatment which does not meet with the approval of his fellow practitioners. I do not think it requires any great argument to show that it is rather a dangerous thing to put an innovator in practice at the mercy of his trade competitors. The second point I wish to make is that here we have a case where the bureaucracy is extending its power over the ordinary surgeon. It is surely just that a man who has the right to enrol his name on the panel of doctors should not have his name removed from that panel without at least a chance to appeal to the courts of law. It is all very well for the Minister to say, as he did in the committee, that nobody asks a man to come on the panel and that he should not object if the Minister throws him off the panel, but that is now almost equivalent to medical registration, for the panel covers an enormous majority of the people of these islands and a medical practitioner struck off the panel has no future before him. He is faced with the ruin of his whole professional career, and surely it is a very small point to say that in the last resort he should have the chance of laying his case before an unbiassed and non-technical Court. The other Court is obviously a Court of his trade competitors, and experts are not in every case the most valuable judges where they are concerned with one of their own competitors. It seems strange that any Minister should wish to withhold from the subject an elementary right such as appeal. The Minister of Health made a speech on this subject in Committee the other day of almost 300 words, and his main argument was that it was impracticable to suggest that in every circumstance in the administration of a great organisation you are to have an appeal to the Courts as to whether men were doing their duty in office or not. We do not ask that in every case. This is an ultimate Court of Appeal, and unless the medical practitioner considers he has a very good case he will not run the risk of bringing it before a Court of law. I suggest that the Committee was convinced by the undoubted charm of manner and persuasive speech of the Minister of Health. This succeeded in convincing the Committee more than any cogent argument that may have been brought forward. I have read very carefully his 315-word speech, and I can assure the House that the arguments were not sufficient to warrant the withdrawal of an elementary right, such as the appeal to the Law Courts of the kingdom from any part of the subjects of His Majesty's Government.
I beg to Second the Motion and to do what the House would naturally expect the Seconder of an Amendment to do—to differ from the Mover in one respect. My hon. and gallant Friend, in moving the Amendment, spoke of the panel practitioner as practically becoming the co-terminus of the whole of the medical profession. But there is another tendency and rather a dangerous one. There is a tendency for certain members of the profession to say, "We will not practice under these conditions." If they are sufficiently able, and if they have a sufficient position of their own to carry along private practice at higher fees they will say, "We will have nothing to do with this panel practice." There is a tendency for a certain class to establish themselves above the panel. That is a bad condition for any Government service to get into, and, therefore, we want to be very certain that we are not going to put any temptation in the way of a doctor, with all his professional cares and anxieties, which are above those of ordinary businesses, and the duties that he may have to carry out under the panel. It will be of no advantage if, in addition to those duties, unnecessary worries are put upon him.
My hon. Friend has said that the criterions put to any doctor, when he is considered to have failed in the duties laid upon him, are those of his compeers who have to consider the matter, and then the Insurance Committee. I have a tremendously high opinion of my own profession, but, above all, of one of my own profession who is in the exalted position of the hon. Member who acts as judge in this matter. But I have sufficient knowledge of my own profession to know that however exalted they are, they are liable to make mistakes. I think it is quite wrong that medical men should be judged in a matter like this by such a body and such a court as is suggested. I can conceive of many mistakes that are liable to happen. I can conceive many cases in which there may be little points of friction of temperament which may eventually culminate in a case where hasty judgment may be given. In that case I think that the right hon. Gentleman, if he is busy in other directions, may be largely governed by the judgment submitted from below, and there would be a feeling of grievance. This feeling of grievance will tend to make a good many say, "I will have nothing whatever to do with panel practice." Therefore a doctor would make use of the Court of Appeal and to keep up the high standard of panel practice we should give him that real right, and a feeling of security in his practice.
I think that the speech of the Mover of the Clause was one of the most inaccurate I have ever heard. It has no real relation whatever to the facts. Every statement he made was inaccurate. I tried to follow him with very great care. I do not think he made one single accurate statement about the Bill. He described the Bill in the first place as an "extension of the power of the bureaucracy." Such a statement as that would always invoke a cheer, but the Bill does not extend the power of the bureaucracy. There is no alteration whatever. There is no fresh purpose in the Bill from first to last. There is no such proposal in any way, shape or form. It is not mentioned in the Bill anywhere.
Surely this would be the right hon. Gentleman's first appearance as the Minister of Health. He is a New Minister of the Crown and here is a new bureaucracy.
There is no word in the Bill at all which relates to the conditions of the removal of the medical man from the panel. The statement, therefore, that there is in this Bill an extension of the power of the bureaucracy is inaccurate in toto. The next point was that the hon. and gallant Gentleman informed the House that medical men have hitherto been tried by their peers. That statement, also, is inaccurate. That is exactly what is not the case.
I was reading from the speech of the right hon. Gentleman.
The fact is that when a complaint is made under the original Act, if a medical man is to be removed from a panel, it had to be proved that he was doing something which was prejudicial to the efficiency of the service, and it had to be a very grave matter. In the next place, the case had to go before the Insurance Committee, which is a lay body, not professional at all, not a body of jealous fellow medical men. It is not a medical body at all; it is a lay body. The statement made to the House was utterly misleading.
Are these words true, "This will apply only after an inquiry by his own professional brethren in the first place"?
Before the Insurance Committee state their case they refer it to the Medical Committtee to see if there is a case to be stated. But the Medical Committee does not judge the matter in any way at all. My hon. and gallant Friend, who is so anxious to suggest this, will find that all they do is to examine if there is a case to be stated. If there is a case at all—which of course it requires professional examination to see—it goes to the Tribunal which was set up in the original Act, and which has not been changed in any way whatever in this Act. That Tribunal has to consist of two medical men who are experts not in the man's own area, and is presided over by a barrister or a solicitor. So that the jealous fellow practitioner does not appear. This body reported previously to the Insurance Commissioners, but with the establishment of the Ministry of Health the Insurance Commissioners disappear and become absorbed in the Ministry. There is no change whatever in the machinery. The case is that the Minister of Health is responsible for the efficiency of the Service. Now there is nothing to compel a medical man to come on the Panel; he can come on or go off if he likes. The next thing is, I am sure, that Parliament never intended that there should be created a statutory vested interest. What would apply to a medical man under the Insurance Act would equally apply to any other man in any other Department of the Ministry of Health. It is the business of the Minister to see that the service is well and truly rendered for the purpose for which it was designed, and this machinery was set up to secure that in a fair way. It is complicated machinery, but although I have been Minister of Health for more than a year I have never had a single case come up to me yet. As a matter of fact work which has to be carried out is so complicated and so difficult that it has to be a very grave case indeed before it gets to the Minister at all.
At all events, Parliament never intended to create a statutory vested interest any more than it does if a man takes service in the Housing Department, the Sanitary Department, or any other Department, and it would be quite unthinkable that a man in any section of the Government service should have an appeal to the High Court if it was found he was not doing his duty properly in that sphere in which he was. It would make the public service utterly impossible, and it would be impossible to get rid of any man even utterly incompetent. This Amendment in Committee received no support whatever, and it was fairly well discussed, and the hon. Member was quite complimented on the way he spoke. I have to answer many misleading statements, but the fact is that this is a claim which has been practically condemned. It would mean that it would be copied in every other Department of the public service, and it would be most prejudicial to the interests of any public service. Everybody knows, and I am sure that the medical men know, that they are very fairly treated indeed, and there is every facility for their case being fairly enquired into, and as that is so, there is no change in this Bill—none whatever. All the safeguards which they have had exist, and I am quite sure that under the new Regulations, which are working quite well, and which they work quite heartily, fewer cases of complaints will arise in the future than in the past. I am quite sure the House will be with me in not accepting this Amendment.
The speech we have just heard from the right hon. Gentleman is about the most convincing speech we could have heard in favour of the Amendment. He says himself that this would only apply in cases of a man doing something extremely prejudicial and where it is a very grave matter indeed.
It only applies now.
It only applies now. I admit that this Amendment is not only to get rid of it in this Bill, but to get rid of a gross piece of bad management under previous Acts. If these are only cases of a very grave character indeed, surely the very last thing that this House ought to allow is that a man against whom a very grave accusation is brought should be deprived of the ordinary remedies of the law! The right hon. Gentleman spoke of doctors obtaining vested interests. He said that if the same thing was to be followed it would be impossible to dismiss people from other branches of the Service. If the right hon. Gentleman dismisses one of his clerks on an allegation that it is for a very grave offence indeed which makes him not fit to carry on the practice of the profession or business in which he is engaged, the right hon. Gentleman will not find he will escape the law courts. These people all have the right of appeal to the Courts. If an allegation is brought against their business capacity or their professional behaviour, they have the right of appeal to the Courts. The gentlemen who moved and seconded this Amendment put their case from their own professional point of view, which made it weaker. There is here a great constitutional principle which this House has always, I believe, refused to depart from and the House has always protested when there has been any attempt to do so. This idea that a man, a member of one of the greatest professions in this country, can have brought against his professional reputation a very grave allegation and that the question can be decided by a body of men—I do not care who they are, whether they are of his own profession or not—who are not lawyers, who are not judges, and who do not represent the courts of justice of this country, is a thing which to my mind is unthinkable. The right hon. Gentleman says that the court before whom it will come will be a court presided over by a solicitor with two other members of the profession. If the right hon. Gentleman had a grave imputation brought against his conduct professionally, would hem be prepared to submit himself to a court of this kind and be deprived of the access to the courts of law, which is the right of the humblest member of this country?
At this hour of the morning—[ Interruption ]. Of course doctors are accustomed to all night sittings, and this is a matter which gravely concerns the honour of the profession. I am sure the House will excuse a word from a man who knows something about it. I regret very much that the right hon. Gentleman is not willing to accept the Amendment, and the reason he gives for it was that it was only in very grave cases that the conduct of a member of the profession would come before this Committee. Well, Sir, on these Committees when a doctor's conduct is enquired into, I think it is usually done in camera, and that when a doctor is willing to have his professional conduct examined in a public court he has a prima facie case, and then it is a strong argument that he ought to be allowed to do so before his case is finally disposed of.
If these cases come before the insurance committees, their proceedings are in public.
I accept that. My hon. Friend knows about that. When a man has still further to go before a judge in a court where evidence can be examined, I think it shows that he is not afraid to have his case judged in the usual way, and I think that this elementary right which every individual in this country has—to apply in the last resort to the higher Court of the land—should not be denied to doctors on the panel. As has been suggested by my hon. and gallant Friend, the panel practice now, in the great majority of cases of members of the profession, is the most important part of their practice, and if they are dismissed from the panel for any reason whatever their professional career is absolutely ruined. Therefore I think there is a strong case that in the last resort the doctor should have the protection of the Courts of the land before his case is finally disposed of and he is dismissed from the panel. We are not out to protect any man doing his work inefficiently or improperly—or any woman, for there are ladies on the panel now—but we maintain that the doctor should, like any citizen in the land, have the protection of the Courts set up to protect the interests of every individual in this country. I support the Amendment, and I hope that if the right hon. Gentleman will not reconsider his decision the House will provide this avenue of justice for the medical profession. It will conduce to the sense of security the medical man would always feel and would conduce to his efficiency in his work.
I think there is still a misapprehension on this matter. I cannot find that the medical practitioner is denied any rights under the common law. If he is aggrieved under the common law, like any other contractor, he has recourse to the law, and I could not agree that a medical practitioner, who has all the rights of a contractor, if he contracts with anybody should have a greater right than a lawyer or anyone else. If he is wrongly dismissed or if the tribunal has in any way misbehaved, he has his remedy under the common law in the courts, and he has no right to suggest that he is being denied those rights.
We have now heard four doctors on this Amendment, and, as I understand it, it is now three to one against the right hon. Gentleman. The hon. and gallant Member who seconded the Amendment put a question to the Minister, and, as I understand it, the question was destined to show that the practitioner who was alleged to be at fault had first to put his ease before the Medical Committee, and if that Medical Committee did not allow the case to go forward it did not come before the Insurance Committee.
A case comes up on the complaint of an insured person, and the complaint goes to the Insurance Committee. The Insurance Committee then refers it to the Panel Committee, who report their findings back to the Insurance Committee.
I have not the words that the hon. and gallant Member read out, but, as I understood them, the Committee had first to say whether a case could be stated, and if that was so, it seemed to me that the finding in the first instance was chiefly made by medical practitioners and not by laymen. Of course, I agree with the right hon. Gentleman if the case as he puts it is the correct one. As I understood it, a very good case was made out by the mover of the Amendment.
It seems to me there is a point of substance here. One cannot believe that an Amendment like this would have been supported by three medical men unless there had been some real grievance at stake. What is asked for is that in the very rare case, a grave case as it must be, coming up there should be an appeal to the courts. That does not appear to be a very great thing to ask for and one wonders why it should be denied. In the old days it was said the King could do no wrong. In these days the Executive seems to wish to usurp all the divine right. One can understand a Minister not wishing to have an appeal against his decision, but after all we have to consider something more important than the position or dignity of a Minister. We have to consider the rights of individuals, and there does appear to me to be a disposition to block the way to the courts. That has appeared over and over again during the past Session, but the doctrine that the Executive can do no wrong has received rather a nasty knock within the last few days on an appeal to the House of Lords. We have learned from that that the action taken by the Government in many cases based upon the claim to deny an appeal to the courts has proved to be baseless.
There is no denial of any appeal to the courts. A doctor can appeal to the courts on the same grounds as any other citizen.
All that is asked for here is that a medical practitioner may appeal to the High Court and if there is no denial of the right why should it be resisted. After all I do not think that the right hon. Gentleman realises what is at stake and he is allowing his natural human sympathy to sink to rather a low ebb. What is at stake here is something as vital as can possibly be at stake, the reputation, honour, and whole career of a man. It is intolerable in those circumstances that it should be within the power of any man, however important the department over which he presides, to block the avenues to justice. I have listened very carefully to the speeches in support of the Amendment and to the speech of the right hon. Gentleman, and I am bound to say, speaking as a professional man and considering what my own feelings would be if the whole of my career were dependent on the decision of one of the Gentlemen who adorn the Treasury Bench, but I must ask the right hon. Gentleman to give way. There is no implication on his own judgment. It is true that the Bill as it stands does not raise this point, but my hon. Friends opposite have taken the opportunity of improving the Bill by introducing this Clause to remedy what is undoubtedly a great grievance, and I think the right hon. Gentleman might set a good example to the rest of the Government by yielding this point and opening up the doors of justice.
1.0 A.M.
I wonder whether the hon. Gentleman who has just resumed his seat is not a master of the art of misinterpretation. His speech does not seem to have any relation to the facts. First of all there is no change whatever in the law contemplated in this Bill. The hon. Gentleman who introduced the Clause certainly led me to believe that there was being withheld in this Bill something that the medical profession enjoyed in the original Act. What is the procedure? A doctor has to commit some grave dereliction of duty before any case can arise, that has to be reported by the aggrieved person to the insurance committee, and the insurance committee then refer it to the panel to advise them as to whether such a dereliction of duty has been committed. This committee determines what shall be done. Insurance committees are democratic bodies, representative of the various approved societies, who certainly have no antipathy or prejudice against the medical profession, and who are only concerned to secure that the service within the area they govern is efficient and up to the highest possible standard. I believe we may rely upon a body of that sort doing full justice. I have had some experience of friendly society work. During the last twenty-five years I have been connected with friendly societies, and I do not yet know of a doctor having a complaint against him under the Insurance Act. They very rarely arise. Are we to give them a statutory right of appeal from court to court to embark on litigation? Who is to bear the cost of that litigation? Are they to be able to sue for damages against an insurance committee?
It is all laid down in my Amendment. It is a pity the right hon. Gentleman did not read my Amendment.
I object to the encouragement of litigation unless it is absolutely necessary. I say it is unnecessary here, owing to the procedure which was adopted and which was very well discussed when the original Bill was before the House. I have some recollec- tion of the matter, and I know that this point was not then overlooked. The medical profession are quite capable of looking after themselves and safeguarding themselves against injustice. They are one of the most powerfully organised professions in the land, and quite capable of seeing that no insurance committee, or even the Minister of Health himself, is able to involve them in any injustice. It is not a bureaucratic body that is determining this matter, but a thoroughly democratic and representative body—the insurance committee acting on the advice of other medical men at their disposal. It appears to me, also, that a reflection is cast on the medical profession, because we are asked to believe that they are so jealous one of the other that you cannot expect them to view the conduct of a colleague dispassionately. As workmen, and as trade unionists, we prefer to be judged by a committee of our peers. We ask no more than this—that if our conduct is brought into question our trade union committee shall be the body sitting to determine our conduct. As no power is now being withheld, and as no injustice, so far as we can ascertain, has yet arisen, a dangerous precedent would be set up if this Amendment were passed. I do not want to cast reflections on anybody, and if in my speeches I say anything that hurts anybody I can assure them that it is quite unintentional. I see no reason for this amendment, and I hope it will be rejected.
There are two points I wish to make. The question of the initial determination of the doctor's fault lies in the hands of a body of doctors, the medical service sub-committee of the insurance committee of the county or county borough. This body of doctors is democratically elected by the whole body of the medical profession in the area. It very rarely happens in practice, but if it should happen that a trade competitor were serving upon that committee when a doctor was appearing to answer a charge, I have sufficient faith in my profession to feel sure that such a person would withdraw from the inquiry. With regard to the Ministry of Health, it is now plausibly suggested that there should be an appeal from the Minister to a judicial tribunal. It has been suggested that in the case of a breach of contract or dismissal an action would lie. I am not prepared to advise the House on that point, but I suggest that if the Minister in the exercise of his ministerial capacity ever does a thing or ever causes a condition to arise over which a doctor would be "aggrieved"—I am using the technical word in the IOU Act—the proper place to deal with the Minister of Health is in this House. Let the aggrieved person bring his complaints to the respected Members of this House, and let the Members make the Minister toe the mark and answer for his misconduct. I hope I have helped the House to realise how a complaint which may come from an insured person is dealt with now, and on the question of appeal.
It is obvious—and the fact that it is after one o'clock is simply an additional proof of the fact—that it is impossible to legislate under these conditions, and, therefore, I have very great pleasure in withdrawing my Amendment. There is no good purpose to be served by a Debate at this hour in the morning.
Is it the pleasure of Members that the Amendment be withdrawn?
I would like to say—[HON. MEMBERS: Order!"] On a point of Order. Is discussion allowed on that point that the Amendment be withdrawn?
You can object.
I thought the occasion of Debate was passing, and it is not our fault that the matter is being taken at this hour in the morning. Two days will be wasted next week on the Irish Home Rule Bill—
The Motion is that the Amendment should be withdrawn If we do continue the Debate, we do not want to discuss whether it should be continued.
I perfectly understand, and I was not going to discuss it. I was discussing the merits of the Amendment. I am discussing the merits of the Amendment, and I am protesting against having to discuss the merits of the Amendment in the middle of the night. [HON. MEMBERS: "Order!"] I am going to discuss the Amendment. I will deal with it as best I scan. Let us deal with some of the ques- tions of misinterpretation that have arisen. The hon. and gallant Gentleman who moved this Amendment said that there would be an extension of the bureaucracy, and the Minister was very angry; but is it not a fact that the Minister himself has got supreme power over the Insurance Commissioners? If so, what becomes of his protest against the complaint that this is an extension of bureaucracy? Of course, it is! Secondly, it was said that this Amendment was establishing a vested interest. Section 15 of the original Act says:
"Every Insurance Committee shall…make arrangements with duly qualified medical practitioners in accordance with the regulations made by the Insurance Commissioners. The Regulations.…shall secure that insured persons shall, save as hereinafter provided, receive adequate medical attendance and treatment.…and shall require the adoption by every Insurance Committee of such system…"
Sub-section ( b ) of Section 15 of the original Act says
"Where the Insurance Commissioners, after such inquiry…may remove his name from the list."
He has the right to go to the High Court.
My point is that under the original Act a vested interest is created for the medical man. That disposes of the second point. The third point was that he was not judged by his peers. As a matter of fact, we now know that in the course of the investigations of a complaint made against a medical man the case is referred, rightly or wrongly—I do not profess to express an opinion—to a panel of doctors.
It is referred to the medical men, who make a report to the Insurance Committee. If they do not decide, then the case goes to the special appeal tribunal set up under the Act.
I do not think the statement made by the hon. and gallant Member (Capt. Elliot) was entirely inaccurate. I think anybody who listened to the treatment which the Minister of Health meted out to the hon. and gallant Member would not imagine that the case was inquired into by the panel of doctors. As a matter of fact, doctors do inquire in the first instance into the case.
This Sub-committee, which in the first instance inquires into the rights of the medical practitioners, consists of five people—two are doctors, two are representatives of insured persons, and the third is an independent layman.
There is no point in making too much of the case, but we are dealing with the speech of the Minister of Health, who charged the mover of the Amendment, in a very testy speech, with making all sorts of misrepresentations, and I dealt with the third of those charges, and showed that it was unfounded. Then the right hon. Gentleman, the Member for Norwich (Mr. G. Roberts) made a speech. He complained that the hon. and gallant Member for Lanark was introducing a procedure to enable a doctor to appeal from court to court, and from court to court, to get decisions against the decisions of the Commissioners. Let me read the Amendment. [HON. MEMBERS: "No, no!"] I am sorry to see hon. Members get impatient. I am quite as tired as anybody else, but if the Government bring on a Bill in the middle of the night we will discuss it. I have been in the House a great many more years than some hon. Gentlemen, and I know that the functions of an Opposition is to examine critically the proposals put forward by the Government. I maintain that we intend to exercise the function whether hon. Members like it or not. Let me read the Amendment—
"No appeal shall be allowed from any order or decision of the Court in any such appeal."
What becomes of the hon. Member who is a "master of mis-interpretation"? If he is a master of mis-interpretation I suggest that the right hon. Gentleman, the Member for Norwich, is a very good understudy. What is the actual case? The actual case is this. The original Act provided that the Insurance Committee should adopt the system, subject to certain conditions which were intended, of course, to give the best possible working arrangements for carrying out the Health Insurance Scheme and the right was given to any duly qualified medical practitioner to be included in the list, but he may be removed by the Insurance Commissioner after such inquiry as may be prescribed if his continuance in the list would be prejudicial to the efficiency of the medical service. Of course, if the Commissioners decide that the continuance of a doctor in practice is prejudicial to the efficiency of the medical service and he loses his position on the panel, that is a very serious slur on him. I should imagine that that would be the end of his practising career.
It ought to be.
It should be. That is a very serious consideration. The next Sub-section of Clause 15 says that the scheme gives the right to the insured person of selecting the medical practitioner he desires. That means free choice of doctor. That was one of the most important points in the earlier discussions on the Bill. We want a free choice of doctor for the insured persons and yet we want to do justice to the doctors so that the medical service is efficiently carried out. The Mover of the Amendment declared that unless you give doctors the free right of appeal you will not get the best class of practitioner to come on to the panel.
rose —
Who is in charge of this Bill?
That is exactly the same as the position of the medical men who are on the medical register—they have no right of appeal to the Court.
That is really introducing a subject that takes us too far in the debate. If you are pressing conditions which the medical practitioner does not think is fair, it is clear that you will not get the best class of medical man on the panel, and if you do not get the best class of man to go on the panel you are defeating the object of Subsection 3 which says that the insured person shall have the right to select the practitioner he desires. You are going to bring the whole scheme into contempt. A panel doctor should not be a term of reproach. Every doctor should feel that serving on the panel is as honourable as any other branch of his profession. That is what we have to aim at. Now the question is whether the original Act gives safeguards sufficient for the rights of doctors and whether it is so framed that the best sort of medical man is obtained on the panel. I point out again that this Clause severely criticised by all the members of the profession vas passed in 1911. Is it really wise that we should make the same mistake as in 1911? Perhaps I will admit it is a mistake I supported. I do not think this was wise. Most hon. Gentlemen will admit it was a mistake. We were compelled to get the Bill through and to take many courses to do so. Is it necessary or wise to commit the same blunder to-night? The Clause has been criticised. Many medical men say that unless you give them this right of appeal to the courts you will not get the right medical men on the panel. At the same time we do not want to take away from the Commissioners the necessary power to give an effective medical service to the insured -person. There are many hon. Gentlemen who can throw much light on it and I protest against the procedure at which at twenty minutes past one we are bound to go on discussing this which is only the third Amendment of an important Bill. I do protest against taking a Bill and discussing this important question at so late a time when people cannot really do justice to the subject.
I would like to ask a question. Are the delinquents among the members of the profession so numerous as to make this machinery necessary?
I do not know of any delinquents.
I think the matter has been left in a very unsatisfactory position indeed, and that my hon. and gallant Friend who moved this Amendment—and was dealt with so scathingly and, I think, so unfairly by the Minister of Health in his desire to show his loyalty to the Government he supports—has shown an inclination not to press this matter. After all, what was the speech of the right hon. Gentleman the Minister of Health? What does it amount to? It seemed to me to be very typical of the very old oratorical device—he built up a fictitious case which did not exist in order to knock it down. The hon. Member who moved the Amendment pointed out that the Insurance Committee was the tribunal after it had been referred first of all to the Medical Committee. There was no misapprehension—at any rate, in the minds of members on this side of the House—that he was dealing with that aspect of the case. He was merely using the words of the Minister of Health himself when he said that this matter was first referred to a committee of doctors. I refreshed myself by reading the report of what took place in Committee, and it is clear that the Minister of Health said there that first of all the professional investigation was made by his fellow professional members, so there was no misrepresentation in that matter at all. The only other argument he used was that this Bill was not extending the power of the bureaucracy. I submit this is a perfectly irrelevant remark. If it be, as we know it has, that the present state of the law, apart from this Bill, has left a power in the hands of the bureaucracy which is contrary to what we consider every citizen is entitled to, then whether this Bill extends it or not is immaterial. We have got to examine the position as it is, and what does it come to? All it is asking for is that when the professional honour of a medical man is at stake, he should have the right of taking his case before a court of law. It is said that would make the Act unworkable. That would apply to the case of every litigant in this country. We know perfectly well that fictitious claims can be made and people put to an expense in answering cases without any justice in them, but could we use that as an argument to prevent citizens getting justice? Here you have the professional reputation and honour of a medical men, and I submit it is not asking very much that he shall be able to take his case to a, court of justice and not have to rely merely on the administration of what, after all, comes to a bureaucracy. I think the Amendment is a reasonable one, and ought to be supported by the House.
I do not want to take up the time of the House, but I think some misconception exists, and the Minister of Health is responsible for it. Unfortunately in his original speech and his speech here tonight he says this goes to a panel of medical men. It goes to a Sub-Committee consisting in part of medical men, but not a panel of medical men. I have a keen remembrance of that because I was chairman of a panel which made these enquiries, and though I have been called many things, no one accuses me of being a medical man. What happens is that it goes automatically to this Sub-Committee. When they have made their report it goes back to the insurance committee. Anyone who has had practical experience will know that a good many of the arguments used for and against are quite illusory. The main difficulty in the Act has been to get any doctor removed at all. It is not a case of more or less exaggerated statements against a doctor, but to shift one doctor from the panel is a herculanean task. I personally remember one medical man who was a habitual drunkard. I do not know how many years it did not take before we got him removed from the panel. I do not think any medical man need think his reputation will be blasted by any panel of a few other medical men. The procedure is that it does not go to the medical panel, but it goes to a Committee, of which a layman must be chairman. The Minister of Health has been somewhat misleading the House and talking round the subject without apparently having grasped the real facts of it. I am not really very keen on the Amendment because I see the difficulties, and I am not so anxious that the medical man should have more opportunities of having difficulties. I think it is unfortunate that the House should not have had the facts before them. Whatever the fate of the Amendment, I think it quite as well we should have the matter thrashed out to-night.
After all, the point raised by the mover of the Amendment is one that ought to be considered. It is one he might have carried further, and it is to that point I am going to take it. He asks for this Amendment in order that a doctor dismissed from his panel by the Insurance Committee, and may be rightly so, shall have the option of going before a court, but he should have gone a little further and said something about doctors taken before insurance committees and surcharged regularly every year with very large sums of money that they have expended in giving to their patients drugs and surgical appliances not allowed under the Act, and we call this a National Health Insurance Act.
It is not a surcharge.
I know how these figures work. It is not so much the calling of the doctors before the Insurance Committee to be dealt with that I complain of; it is the fact that in thousands of cases doctors have been called before Insurance Committees for prescribing medicines to patients whom they wanted to get well, but whom the Act would not allow them to help. I should like to see the mover of the Amendment bring up that phase of the case. I have been a member of an Insurance Committee and I am Secretary of an approved society, and I protest against this so-called National Health Insurance Act that does not give the proper kind of drugs and surgical appliances to those who come inside the Act. There is no doctor in this House who will not admit that in thousands of cases the patients are absolutely barred under this Act from receiving the medicines which they ought to receive, and that as a result hundreds and thousands of the people have died. What I would like to see introduced into this Bill is real medical treatment.
That does not come within the scope of this Clause.
Question, "That the Clause be read a second time," put, and negatived.
CLAUSE 2.—(Rates of sickness, disablement and maternity benefits.)
(1) The ordinary rate of sickness benefit shall be in the case of a man the sum of fifteen shillings a week, and in the case of a woman the sum of twelve shillings a week, throughout the whole period of twenty-six weeks, and the rate of disablement benefit shall be a sum of seven shillings and sixpence a week for men and women alike.
(2) The amount of maternity benefit shall be a sum of forty shillings instead of a sum of thirty shillings.
In the foregoing provision the expression "maternity benefit" includes maternity benefit payable under the provisions of subsection (1) of section twenty-two of the Act of 1918.
(3) Subsection (1) of section twelve of the Act of 1918 (which provides for reduced rates of sickness benefit in certain cases) shall have effect as if nine shillings and seven shillings and sixpence were therein substituted for six shillings and five shillings respectively.
(4) Every scheme in force under section seventy-two of the Act of 1911 shall continue to have effect as if the rates of benefit had not been altered by this section, and no such scheme shall be amended so as to provide for any benefit provided by the society being reduced by an amount greater than the amount of the similar benefit under the Act of 1911 at the rate in force before the commencement of this Act.
I beg to move, in Subsection (1), to leave out the words "in the case of a man" ["benefit shall be in the case of a man the sum of"].
It will be admitted that this Bill is a very important one, and we are prepared to see it through. There are one or two important points which it would not be proper if the House were not asked to come to a decision upon.
I suggest that this Amendment is out of order. It will, in fact, enlarge the provisions of the Bill, as subsequent Amendments which follow on this clearly show, by increasing the charge on the Exchequer.
I hope to be able to show on a subsequent Amendment that there are resources to meet this without I causing any charge to come on the Exchequer, at least during the current year.
I do not quite appreciate the Minister's point. It appears to me that while it may be that this proposal would bankrupt the fund, the State provision, if I remember aright, is a fixed contribution. Is that not so?
No, Sir; it is not. The effect of this Amendment to leave out the words "in the case of a man," and the others which follow on it, would mean that the 15s. a week would be made 23s. a week, and that the benefit would apply to both sexes alike, instead of benefits of 15s. for men and 12s. for women. The State pays two-ninths of the cost, whatever it is, and as this would increase the benefits the State would have to pay two-ninths of the extra sum.
If the submission of the Minister is correct, a very large portion of the debates on the first Insurance Act would have been ruled out of order. I suggest that whatever may be the intrinsic merits of the point of order submitted by the Minister, the matter at issue can only be clearly apparent after hearing what the effect of the Amendment would be. It is rather early in the day to come to a decision on this question and knock out the most important suggestion made by my hon. Friend for the improvement of the Bill.
The right hon. Gentleman is aware of the terms of the Financial Resolution under which the discussion on the principal Act proceeded. The point here is what are the terms of the Financial Resolution governing this. It says: "In making grants equal to two-ninths of the funds required for providing benefits and for defraying expenses of administration, so, however, that the rate of sickness benefit shall not exceed 15s. per week for men or 12s. per week for women." This would go beyond that. Therefore I suggest that the Amendment goes outside the scope of the Financial Resolution.
I think the right hon. Gentleman is a little premature. He does not know the object we had in mind because he did not give the hon. Member an opportunity of explaining his Amendment.
The point is whether it is out of order.
I am endeavouring to show that we can quite well be in order even if there is substance in the point of view which the right hon. Gentleman puts forward. We have not yet committed ourselves to the increase on the contributions of the women at all, and if necessary we are prepared to express our belief in this principle that we are trying to ennunciate by making the contributions the same for men and women without increasing the women's benefit. That would mean that, if necessary, we are prepared to reduce the man's benefit in order to establish sex equality. That is the object of our Amendment, and I submit to you that the point of Order of the right hon. Gentleman is not one of substance.
I would like to ask whether the right hon. Gentleman, very properly taking this amendment with all the Amendments on the paper, does see that the effect will be to increase the benefit. That is the object of the batch of Amendments. I was going to suggest that the funds for that amount be found from certain sources which would not involve a charge on the Exchequer. If we are prepared on our subsequent Amendments to reduce the amount of the benefit for men to the equal of that for women, instead of increasing the benefits for women, would that be in order, I would like to ask? That, I think, would meet the objection which has been raised by the right hon. Gentleman, and under those circumstances I submit that I may be allowed to proceed.
What difference would that make in the consequential Amendment?
The consequential Amendment would be, to move to omit the word "fifteen" and instead of inserting "twenty-three" it would be to insert "twelve."
Do I understand that the suggestion now is that the benefits of the men are to be reduced three shillings? Otherwise I suggest that point of order still stands.
That is the point, Sir. Apparently the position is that the financial resolution binds us in a cast iron girdle out of which there is no escape. Upstairs in Committee on the Unemployment Insurance Bill the Committee did increase the benefits and the view there taken was that we had not gone outside the scope of the financial resolution, but that what we had done was, to use your own expression, Sir, "we had bankrupted the fund." That is the course we should have been prepared to follow here to-night, but as that has been ruled out of order, I will take the course I had indicated on my subsequent Amendment. Still, we feel very strongly, and a great measure of this kind should not go through without the House expressing its opinion on this great question of the equalisation of the conditions as between men and women. Our Amendment would bring both the man and the woman under the same conditions as far as national health insurance is concerned. Our desire is in no way to reduce the benefit but rather to increase it, but we do feel that this question of equalisation is so important that we must take the course that has been ruled in order to bring this before the House. I ask the House to accept the Amendment on the following grounds: That no case can be made out for differentiating the rate of payment between men and women. It cannot be made out on the ground of responsibility. I know it is often said that men have more responsibilities than women, and that in determining allowances of this kind you have got to take into account that men have a family to support whereas the woman is presumed not to have. I think that is taking a wrong view of the situation. While it may be true in some cases, the fact remains that in a very large number of cases women who are working and who will come under this Bill, have very great responsibilities indeed, in many cases quite as responsible as those of men. So that ground disappears. Then, it cannot be said that differentiation is based upon the question of employment and wages, because if one takes the whole range of men and women brought within the Act it is perfectly clear that there will be a great many women receiving this benefit who when they are at work are receiving more wages than a great many men. Therefore that ground disappears. I do not know of any other ground which can be adduced to substantiate this differentiation, and what the House has really got to decide is whether we are going to perpetuate the state of things to which we have been accustomed in the past and in which we were willing to place women under different conditions from men in regard to remuneration. Conditions have changed very much in the last few years. A very different attitude is taken now on the subject of the treatment of women. It may be said by cynics that that has something to do with the position in which women have been placed electorally, and to the fact that they now have votes and can bring influence upon Members of this House which they were not able to exercise in the past. That is perfectly true, but that in itself cannot be treated as any reason against giving them equal treatment upon other grounds if they are entitled to it. I wish to move the insertion of these words, and to ask the House to express its opinion upon this question. Women are entitled to know what is the view of the House, and if the decision come to is that we are to perpetuate inequality in that condition at least the women will have the consolation of knowing that the matter has been considered by this House and a decision given, even at this unearthly hour, upon this important question.
I beg to second this Amendment.
I am very glad to see the Lord Privy Seal (Mr. Bonar Law) in the House, because I wish to take this opportunity of reminding him of his famous letter issued before the General Election, in which the programme of the Government was set out in a very cunning manner. Among the phrases used there, every hon. Member will recollect that it was stated that disabilities between men and women would be removed. This was one of the main planks of the programme on which the present Government appealed to the country. Now we have got to deliver the goods. Apparently we are in danger of being ruled out of order if we attempt to increase the benefit to women up to that for men, but so strongly do we feel on this point that we are prepared to propose, and I hope we shall get the support of the House, that the man's benefit shall be reduced to that of the woman's. I do not think it will make so very much difference. The sickness benefit of a man is 15s. That is a ridiculous proposal. We think it is altogether inadequate, and a disgrace to this wealthy country, and to reduce it to 12s. will not make a great difference. It is impossible for a sick man to live, let alone to get the extras he requires, on 15s. a week, and 12s. will not make a great difference.
I would point out that there an extraordinary provision a few lines lower down in the Clause. In the case of sickness it is proposed that a man should have 15s. and a woman 12s. per week, but in the case of disablement the benefit for a man and a woman should be the same. Now where is the logic in that? Why should a disabled woman get the same benefit as a disabled man, while a sick and ailing woman gets a less amount than a sick and ailing man? I should like to hear an explanation of that. I do not really think it can be explained. It is part of the old masculine prejudice and the old mediaeval ideas that are still enthroned by this most absurd Coalition Government. That is our case, and although it may be said that we are trying to reduce the already preposterously meagre sickness benefit, we think that we should test the feeling of the House on this very great principle, because it extends further than the immediate Amendment we are discussing. There will be presently brought before us the Unemployment Insurance Bill; there is the whole question of the payment of the civil services and the payment of teachers, a most important matter, affecting the whole well-being and health of the country at the present moment. Therefore we think it doubly important in view of these facts that we should press this Amendment, and, if possible, vindicate the very great principle on which I think the Government was partially elected, and which I think it is due to them as honourable men now to carry out.
Hon. Members are now adopting the expedient of attempting to reduce sickness allowance. By this means they would of course tear up the whole Act, which would have to be re-written. The whole finance of the Act is based on a certain contribution being provided for sickness benefit. A woman's contribution is smaller than the man's, and hon. Members do not propose to raise the woman's contribution to the level of the man's contribution. As a matter of fact, in a case like this, the financial parts of an Act are always carefully adjusted to provide the different benefits and to attempt to reduce the benefits of millions of insured men is foolish. But there is no disability for a woman, as compared with a man, because a woman pays a smaller contribution. She gets the full value of her contribution in the same way as a man gets the full value. In respect of one other matter, I might say that the terms of disablement in the Insurance Act have a specific meaning. It does not mean the breaking of an arm or leg or anything of that sort.
What does it mean?
I am trying to tell you, but if you do not wish to be told there is an end of the matter. I have shown that we shall have to re-write the Insurance Act if we accept this Amendment.
I quite agree that we are in a very anomalous position in taking the course we have done, but I can assure the right hon. Gentleman that it has not been done light-heartedly. It cannot be dismissed light-heartedly, because I think the Prime Minister made a pledge at the time of the election that women should enjoy the same conditions as men. If this pledge is to be redeemed this is the kind of measure in which it should be redeemed. While it is perfectly true that the financial provisions of the Bill as they stand will not permit what we want to be done, the burden rests upon the Government. The Government have made financial provision for a great many extraordinary things during the last 18 months, and if the money that they have squandered in other directions—as, for example, all the money which has been squandered in Russia—had been devoted to the necessary funds to provide these two great contributions to the life and health of this country we should not have been in the position we are to-night. While I have no intention of pressing this matter to a division—[HON. MEMBERS: "Divide, divide!"]—yet if hon. Members wish to have a division on the subject it is a matter within the competence of any members to have a division and thus gratify their desire. It is not a matter which can be dismissed on either side as a mere trifle. I think the women of the country will look very seriously on this question and my action has been purely spontaneous and has been the result of a good deal of information brought to my notice.
Question, "That the words proposed to be left out stand part of the Bill," put and agreed to.
CLAUSE 4.—(Sanatorium benefit discontinued except in Ireland.)
(1) Sanatorium benefit shall, except as regards Ireland, cease to be included among the benefits conferred by Part I. of the Act of 1911.
(2) The Minister may in connection with the discontinuance of sanatorium benefit make provision by regulations—
( a ) for the manner in which any surplus standing to the credit of the Sanatorium Benefit Fund of any insurance committee, after all liabilities in respect of the expenses of sanatorium benefit have been met, is to be disposed of, and in which any deficit in the Sanatorium Benefit Fund of any such insurance committee is to be met, and for making such other financial adjustments as appear necessary for carrying this section into effect; and
( b ) for determining any agreements entered into by insurance committees under any enactment relating to sanatorium benefit which is repealed by this Act and for transferring to other persons any rights or liabilities under any such agreements; and
( c ) with respect to the disposal by insurance committees of any registers, records or other documents in their possession relating to the administration of sanatorium benefit or to persons who have been in receipt of sanatorium benefit.
(3) The expression "medical treatment and attendance" in paragraph ( a ) of subsection (1) of section eight of the Act of 1911 includes treatment and attendance in respect of tuberculosis.
(4) Subsection (3) of section twenty-four of the Act of 1918 (which relates to the sanatorium benefit of persons in the Naval and Military service of the Crown), shall cease to have effect.
I beg to move to leave out the Clause.
2.0 A.M.
I feel that this Clause cannot be allowed to stand part of the Bill without some protest under the circumstances which I will explain. I will ask the indulgence of the House, particularly referring to the cases I know best and those affecting my own constituency. I have no doubt they are typical of other constituencies. The Clause proposes that sanatorium benefit, except as regards Ireland, shall cease to be among the benefits conferred by Part I. of the Act of 1911. The unanimous opinion in Hull is that a great deal of trouble and work by self-sacrificing and devoted citizens has been put into working all the insurance benefits. A great deal of expense has been incurred which was never intended in the original Act. I submit that the services for the benefit of those suffering from the grave disease of Tubercolosis as provided for the Hull district will never be provided by the Minister of Health for the next generation. There is a very beautiful sanatorium at Cottingham endowed by the rates and by private benevolence right outside the provisions of the original Act. Now it is proposed that all this will be practically swept away. What is proposed is that the organisation, the administration of this great work, will be taken away from the local committee and put under the Ministry of Health. That is in the Bill, and that cannot be denied. The case that is made against it is, I think, very reasonable. The present health committee of the local government of this city is already overburdened with work. It has to do all the housing, which will take a good many years, and all the other services of inspection of school children, eyesight, dental, and all the rest of it which, I am glad to say, has been put on local bodies in recent years; and the almost unanimous opinion in Hull is that the health committee of the local governing body will not be able to take over the work. There is the usual objection made to the fear of bureaucracy. I admit here that the committee which administers this work to which I am referring is unpaid, is amateur if you like; but it is composed of devoted people who spend all their time there. The hon. Baronet who deputises as Minister seems rather amused. I may be putting my points rather fervently, but I am trying to do justice to a very great work of charity and humanity, and which under this Bill it is proposed to very badly mutilate and to take away from these devoted people who have built up this great service, and the House ought to consider this matter seriously. Now, there is another point which has been carried out by Hull, and which, I think, is the most important of all. Under the original Act and under this Act there is no money provided for after-care treatment of consumptives. This is really a matter of immense importance. I am very sorry that the two—[ Interruption. ]—
The hon. Member will get on better if he addresses his remarks to me.
I beg your pardon. I regret that the two hon. Members of the medical profession who were sitting on the other side of the House are not here to support me in this matter. A tremendous amount of money was wasted in this part of Yorkshire, and I have no doubt in other parts, because there was no money spent on after-care of the consumptive. Men would be taken from unhealthy surroundings and trades, would be sent to the sanatorium, return apparently cured, and then go back to their insanitary surroundings and work, and in a very short time the disease would again manifest itself and the whole money would be wasted. There was waste of human life too, and suffering. What the local committee at Hull have done—and I want to commend this to hon. Members before we take the vote on sweeping away all this work, for that is what it comes to—what they have done is to very carefully build up a system of visiting these people and taking care of them, and seeing that the disease does not begin again; and in many cases they have gone to the expense and trouble of changing the man's whole home surroundings entirely. They have brought him out of his home, set him in healthy surroundings, and in many cases set him to do healthy work in the country. There was one particular case of a man who was doing light baking—
That seems to be a principle of administration and we are dealing solely now with legislation.
I regret that I could not give the example, because I was meaning to show the very excellent work which has been done and the feeling of the people for whom I am trying to speak. This is going to be swept away under the provisions of Clause 4. Private benevolence is likely to dry up. I am sorry to say the services of the devoted people who, in spite of the jeers of the callous and cynical, will be greatly—
On a point of Order. Is the state of benevolence in the hon. Member's constituency a relevant matter to be discussed?
I hope the hon. Member will get nearer to the Amendment which he handed in.
All I wanted to move after these very few explanatory remarks was that this Clause should be left out. Clause 4 should be left out because it interferes with a very successful and a very useful work as that which I have tried to set out here. In these circumstances I move that Clause 4 should be left out.
I second the Amendment.
Clause 16 is the relevant Section of administration of sanatorium benefit. I will not read it. That sets out the sanatorium benefit according to the original Act. All I propose to do is to read, before we dispose of Clause 4, an account of what Section 16 of the original Act does, and then the Committee of the House will be in a better position to judge whether we should repeal Section 16 of the Act of 1911 from this description of what it does. I venture to use the words of the Prime Mitster— That is his description of Clause 16. He went on to say:—
I am sure the House will have listened with pleasure to the quotation which my hon. and gallant Friend has unearthed, but I may say that the purpose of this Clause is to give better benefits than are given at present.
Does the right hon. Gentleman say that after the Prime Minister's utterance.
I hope we have learned something about tuberculosis since the Prime Minister's utterance ten years ago. We have suffered from the disadvantage that wife and children of an insured person might have with the disease, and clearly they needed treatment in the same manner as the father. It is specifically provided by the Act that the sanatorium should be provided by the County Councils or it may be other authorities, and the institution of which the hon. Member for Hull (Lieut.-Commander Kenworthy) gave such an entertaining account, is not an institution provided by the Insurance Committee at all. The original Act specifically excludes the Insurance Committees from providing sanatoria.
Has the right hon. Gentleman read Section 16 of the Act?
Yes, I know it well. I am well aware that these sanatoria are provided by the county councils. The point of this proposal is that we desire that the treatment of tuberculosis shall be extended where necessary. The whole scheme of which this is designed to be a part is to secure that one authority is competent to deal with all stages of tuberculosis, and it is for the benefit of the insured persons that this enlarged scheme has been devised, and the authority competent to handle the whole matter will now be entrusted with the duty as a whole. That is the object of the Amendment, and the delightful quotation read by the hon. Gentleman has nothing to do with the point. We only propose to transfer the service from one set of people to another, but we propose that the authorities shall have added powers and added funds to perform this service for the benefit of the insured persons.
We have listened to a statement from the Minister of very great importance. I am not criticising for a moment the proposal in the Bill which I think is in all probability a very great improvement on the matter as it stood in the orginal Act. But such statements as that which are of the deepest interest unhappily to thousands of homes in the Kingdom affected by this fell disease or threatened by it should not be made at this late hour.
It was made on the Second Reading.
A Second Reading statement does not receive the close examination which is specifically intended by Parliament for this stage. This is not the time to make a statement of that sort. It ought to be made at a time when it would have received the public attention which it rightly deserves. The statement that has been made by the head of a Government department and by a man specially qualified by professional training and experience is one of real national importance, and which ought to be followed and discussed by persons who are not able to be here. Several Members specially qualified to deal with this matter are not present now, and it is a matter of the most urgent and vital public importance.
I do not agree with any of the criticism on this subject which has come from this side of the House. This great question of tuberculosis is one of the most serious, in my judgment, of the public health problems of our time, and it is altogether too vast and too serious to produce anything like levity, even at this hour of the morning. The defects in administration of tuberculosis treatment have been very largely in the direction of lack of funds on the part of insurance committees and lack of accommodation by local authorities. As the right hon. Gentleman has already pointed out, the responsibility of providing accommodation has been with the local authority, the responsibility of providing the funds has been with the Insurance Committee, and neither of them has been adequate to deal with the problem with which we have been confronted. Domiciliary treatment, or treating consumptive persons at their own homes, has been altogether inadequate and unsatisfactory. The medical benefit conditions of the Act read thus: "Insured persons are entitled to such treatment and attendance as can be properly undertaken by a general practitioner of ordinary professional competence and skill." Even when all these qualifications are fulfilled, it does not make a man proficient or efficient in the treatment of tuberculosis. One of the most tragic features of the public health administration is the complete inability of the medical profession of this country to effect an early diagnosis of tuberculosis, or at least their failure to disclose the fact that they have made the discovery. Signs that are unmistakable indications to mere laymen, the ordinary physical signs, that tuberculosis is in existence, have been altogether ignored. The cases have not been notified to the public authorities, and the certificates handed to the approved societies have borne some other pronouncement as to the cause of incapacity. A year or two ago I attended an important conference in this city. It was addressed by Professor Berenak, of Vienna, a tuberculosis specialist from Berlin, our own Dr. Philip, of Edinburgh, and a distinguished medical Member of this House. We were discussing tuberculin as a method of treatment for tuberculosis, and these experts set forth the fact that no medical man ought to administer tuberculin unless he was fully qualified in its elements, its constituents, its preparation, and the dose required at every stage of the disease, and said that unless it was handled with extreme skill the remedy would be worse than the disease. There are medical men in this House who must know that these medical practitioners of ordinary professional skill are dabbling in the tuberculin treatment of the patients they attend under the powers of the Insurance Act. My grievance against the proposals of this Act is that the medical treatment and attendance which are left inside the Insurance Act are not taken away in addition. I am speaking now as a member of an Insurance Committee, and also of some years' experience as a member of a Health Committee of a large corporation. I have visited quite a number of sanatoriums in different parts of the country, and have endeavoured to do all that a layman could do to investigate this question. If I had my way on this Act I would encourage early diagnosis of the disease on the part of the medical man, and as soon as diagnosis had been effected I would take the treatment of tuberculosis out of the hands of the ordinary panel doctor absolutely, and put it into the hands of the specific expert authority. That is necessary if this great evil is to be grappled with.
I am not in a position to agree in some of the things that have been said on this side of the House although I think that, generally speaking, the provisions made in this Bill for the treatment of tuberculosis is a very great improvement upon the experimental benefits. I believe the treament of tuberculosis is so important that it ought to be under one co-ordinated authority, and the local authority is the best of the authorities to administer this portion of the Act. I agree that we ought not to be discussing such an important thing as the public treatment of tuberculosis at half-past two o'clock in the morning. It is unworthy of the House of Commons, and it is unworthy of the Government that we should be asked to consider an important aspect of the public health of this country at this hour in the morning. In my own constituency—and I believe this Act applies to Scotland—this disease is a very serious one, and I should like to know from the Minister of Health or the Secretary for Scotland what effect this Act is going to have in those places where, up to now, the blessings of this Act has been practically passed over altogether. In my own constituency nothing has been done, at least not very much. I do not agree with the aspersions cast on the general practioners. If I were unfortunate enough to be suffering from tuberculosis I would much prefer to be under the hands of the average general practitioner than under the hands of the best so-called expert in the country. So—
The hon. Member is now going into the question of administration of the existng Act with regard to tuberculosis. The only question that arises is whether or not we shall deal with sanatorium benefit as laid down under the new Bill, or whether we shall maintain the existing system.
On a point of Order. I submit that this Clause repeals Sections 16 and 17 of the Act of 1911 and would it not be in order to discuss the work done by those Sections to see how far it is desirable to alter it?
We are not dealing with the question of administration, but merely as to whether it is the right thing to do to make this transfer or not.
I think it is the right thing to effect this transfer from the county councils. But a very grave statement was made by the hon. Member behind me. The layman is apt to have somewhat too high notions of the expert's views on the question and seeing that the statement was made I would like to say that the reflections were not justified on the general practitioner in relation to tuberculosis. The early diagnosis of the disease is a very difficult matter sometimes and generally speaking I should say that the general practitioner in the country is just as able to deal with tuberculosis as any of the so-called tuberculosis officers appointed under this Act. I did not rise with the intention of dealing with this at any length, but generally to indicate my support of the Clause because I believe it would be for the benefit of the public health of the nation.
I want to deal with this Clause as it affects Wales. There is a good deal of concern in Wales on the part of the Association of Insurance Committees as to where the money is to come from in regard to the treatment of tuberculous cases in Wales. We have in Wales one of the most up to- date institutions in the whole country, and it was brought into existence by voluntary contributions in the shape of £200,000 contributed by the people as a memorial to the late King Edward VII., and this institution is to be opened in July by His Majesty the King. From three sources—from the insured person, from the employer, and from the State—this institution has been receiving £25,000 annually, and the concern now of these insurance committees is where is this money to come from in future? I have been examining Clause 4 to try and find some light on that, and I must confess it seems to be all very nebulous. There is nothing sufficiently definite, in my opinion, to warrant our changing our existing system for the innovation. If the Minister of Health will thrown some light on that, I am sure he will give great satisfaction not only to the House but to the country generally, and particularly to Wales, where sanatorium treatment has really been taken up energetically. If the Minister of Health cannot see his way to make some definite pronouncement as to where this £25,000 is to come from in future, I shall support the exclusion of Clause 4.
In order that we should decide whether this transfer is right and equitable, we should know the effect of the transfer. The hon. Gentleman who has just sat down wants to know where the money is coming from, and my hon. Friend below me asks the same thing. In my constituency there happens to be a very efficient and up-to-date tuberculosis sanatorium, which is occupied by well-to-do people. The rateable value is very low, and I am sure that the Insurance Committee in the county I represent would be very glad to know what exactly the effect of this transfer is. I hope the right hon. Gentleman will give the House some information on that point, because it does affect very seriously the low rateable values in the Highlands of Scotland.
This is a matter in which a considerable portion of my constituents are very much interested. I should like to put the views and the grievance which they feel on this Clause. The first Sub-section of this Clause discontinues benefits, and in Sub-section (2) it says:
"The Minister may in connection with the discontinuance of sanatorium benefit make provision by regulations"—
How is the fund to be disposed of, and how is it proposed to transfer to other persons the rights and liabilities under such agreement! We have heard as to the discontinuance of the benefits conferred by Sections 16 and 17 of the Act of 1911 and of the disposal of the funds and the transfer of the rights and liabilities under the agreement, but what is the Minster to do? That again, I submit, is legislating by reference, and putting more power in the hands of the bureaucracy. Under the Sections of the Act of 1911 we did at least know where we were. In this Clause we simply give further rights to the bureaucracy and give them a blank cheque without knowing what is going to be done. I submit that a matter like this is very important in dealing with the serious question of sanatorium benefits, and at this time of the night the matter can hardly be thoroughly gone into. What is going to happen with regard to the administration so far as the insured persons themselves are concerned? As they are, with the domiciliary treatment of tuberculosis and also with regard to the inquiry into the persons who have received this benefit, they are very anxious to know what their real position will be when this Clause is passed. The transfer of part of the work is to be made to the municipality, and it is thought—and I think it is a very legitimate apprehension—that the members who are in need of this benefit are in closer touch when the matter is in the hands of the Insurance Committee, which is largely composed of representatives of the friendly societies, than they would be in the hands of the committee of the municipality, which may not have such personal, direct or sympathetic knowledge of the matter. It is therefore a matter which wants very careful consideration that the apprehensions which the friendly societies and the insurance committees now feel on this matter should at least be allayed by the Minister. More information should be given as to what is the proposed substitute for this administration and what proportion of representation the friendly societies will have on the new administrative body. It is a matter where we ought to have further light from the Minister of Health before we pass this Clause. I would like to support what one hon. Member mentioned in regard to the funds that are to be available for after care treatment and after care institutions. This is a matter which engages the most serious concern and interest of the institutions which are doing such great work in this matter. It is a question of funds and shortage of funds. It would have been very much better if the Minister of Health could have given us a wider survey of his intentions in this matter and the various fears might have been allayed.
Before the right hon. Gentleman replies I would like to put a point of practical interest to my constituents. I have had a letter from a very big sanatorium in our part of the world. A patient went home, he relapsed again and was advised not to return again on account of the rigour of our Northern climate and that he would have a much better chance of recovering if he came down to a Southern sanatorium. He applied for some means of transfer and was told there was no means at all by which he could go to one in the South.
That is a question of administration.
I leave that point. There is a wider point which also comes under this. I understand that Clause 4 has an advantage that it gives benefits not under the earlier Act. I see that Clause 4 is not to be extended to Ireland. Would the right hon. Gentleman tell us why Ireland is to be excluded from the benefits of this Bill.
I rise to answer the very important point of my hon. Friend. The system of grants to the local authorities dealing with the sanatorium and so on could not be placed in this Bill. It is done of course by votes in the House, but there will be later on in the Session a Bill coming forward from the Department dealing with that part of the case My hon. Friend can be fully assured that there will be no idleness in this excellent institution to which he could not refer in too high terms, and it will find itself under no disability whatever. We take powers to adjust the duties I come to the matter referred to in the course of the discussion, the question addressed to me by my hon. Friend who spoke last. In the case of Ireland the reason is that there is no medical benefit in Ireland as there is in England and there is not a similar system of powers with regard to the domiciliary side, of sanitation, and so forth. There is a poor law service, an entirely different kind to what there is here, which renders general medical service and we find it appropriate to take it out of the existing system until an alternative system of medical services has been applied to Ireland.
I take a special interest in the question of tuberculosis, being governor of one of the largest institutions. I do not think the right hon. Gentleman realises that although it is very late at night there are a good many of us who do not fully understand that greater care, not less, is going to be taken in sanatorium treatment. It has never been stated specifically what has taken place. In a few words the right hon. Gentleman could explain what is to be done and satisfy many of us who are here that further benefits are to be given and not less.
I made a statement a little time ago, when, I think, the right hon. Gentleman was not here. We propose in connection with the schemes we are now developing for the provision of post-sanatorium training in connection with disabled soldiers that it should be made generally applicable, that we should develop the village settlement system as far as it is found to be practical and link the whole of the system up with the after care at the end and dispensing services at the beginning as far as we can under one composite authority. We are already providing generous grants for the provision of machinery, training apparatus and all that sort of thing. We are now making a survey of village settlements as part of one comprehensive scheme instead of dealing with it in two sections of the population as it is at present.
I want to ask the right hon. Gentleman will this be a disadvantage to those Highland areas in Scotland with low rateable value. Will those grants to which he referred be applied to the areas with low rateable value or will this be a very heavy addition to the rates of these areas which are so high that the community is not able to bear them already.
I cannot answer the question on specific areas.
It is a pretty unsatisfactory reply.
Amendment negatived.
Amendment made: In Sub-section (2, b ), leave out the word "and" [repealed by this Act and for transferring"] and insert instead thereof the word "or".—[ Dr. Addison. ]
I beg to move, in Subsection (2, b ), after the word "persons" ["transferring to other persons"] to insert the words "on such conditions as may be prescribed."
I am not clear how we stand about these words. Perhaps we can look to section 11. Section 16 is administration of sanatorium benefit. Section 17 appears to extend sanatorium benefit. Clause 4 apparently precludes the insured person from getting benefits under these two sections. I can find nothing in the Bill which pepeals these sections. I may be on a good or bad point, but I am examining the proposals which the Government have put forward. Under Section B of Clause 4 the Government takes power to determine agreements on such conditions as may be prescribed. What I want to know is whether the duty which is laid on the Insurance Committees under Section 16 of the original Act to make arrangements still persists. Surely there is a little bit of slackness in drafting. Here we have the duty laid on Committees to make arrangements, and now we are passing another Bill which says that the Minister of Health shall determine these agreements, subject to certain conditions. I suggest that it would be a mistake to pass this amendment. What we ought to do would be to repeat Sections 16 and 17 of the original Act when the duty of making arrangements would cease. To leave the Committees with the duty of making arrangements and then empower the right hon. Gentlemen to determine the agreements seems to me to be going a very long way round. It could be better done by the plain excision of the two clauses.
The Amendment is to insert the words "on such conditions as may be prescribed" in Sub-section B of Clause four. But Sub-section 4 of Clause 4 refers to the case of sanatorium benefit of persons in the naval and military service of the Crown, and it says that Sub-section 3 of the Act of 1918 shall cease to have effect. We ought to know why this should cease to have effect in the case of persons belonging to the naval and military services, and what is going to be done as an alternative.
I think it is quite obvious that the suggestion made by my hon. friend (Capt. Benn) would be inappropriate. We could not simply determine certain provisions of the original Act. When there are agreements extending over different periods you must take power to determine them according to their varying conditions, and therefore the guillotine proposal he makes would be quite inappropriate. If the hon. Member will refer to Clause 21 of this Bill, he will see how it is provided—
We have had all this on the question of leaving out the Clause, and we must not have it over again. The only question now arising is the exact meaning of the words to be inserted.
That is what I am trying to explain.
I cannot hear the right hon. Gentleman; he should address the Chair.
If you look at Section 21, it says that on the 5th July, 1920, or such later date or dates, not being more than 12 months after the passing of the Act. These words are put in because Insurance Committees have entered into all manner of agreements, and it is suggested that these words will cover the great variety of agreements which have been entered into.
Amendment agreed to.
CLAUSE 7.—(Provision for cost of medical benefit and for administration expenses of Insurance Committees.)
(4) If the special circumstances of any county or county borough are such that the Minister considers that the travelling expenses of the members of the insurance committee for that county or county borough should be repaid to them by the committee, the Minister may authorise the committee to repay the whole or any part of any such expenses, and any sum so repaid shall be treated as part of the administration expenses of the committee.
(5) There shall bed paid in each year to insurance committees in Ireland out of the funds out of which benefits are payable under Part I. of the Act of 1911 on account of the administration expenses of those committees such sum not exceeding twopence as may be provided in respect of each of the total number (calculated in the prescribed manner) of them persons who are entitled to sanatorium benefit as being or having been members of an approved society.
(6) This section shall be deemed to have had effect as from the first day of January nineteen hundred and twenty, and regulations made for the purpose of this section may contain a provision directing that all or any of the provisions of the regulations shall, with such modifications as appear necessary or expedient, apply and be deemed always to have applied as from that date.
I beg to move, after Sub-section (4), to insert a new Sub-section:
(5) The Insurance Committee, if requested to do so by any Committee elected by the medical practitioners who have entered into agreement with the Insurance Committee for the attendance and treatment of insured persons whose benefit is administered by the Insurance Committee may be authorised by the Ministry of Health out of moneys available for the provision of medical benefit within the area to allot to, and for the administrative expenses of the said Committee such a sum, not exceeding one penny per annum in respect of each insured person entitled to obtain medical attendance and treatment from the practitioners who have entered into agreement with the Insurance Committee, as may be determined by the Insurance Committee with the consent of the Minister.
Under Section 23, Sub-section 2, of the 1913 Act provision was made that one halfpenny per insured person should be paid to committees of pharmacists and doctors serving under the Act so that this does not introduce any new principle; but merely takes account of the relative value of money then and now.
Amendment not seconded.
3.0 A.M.
I beg to move, after Sub-section (4), to insert a new Sub-section—
(5) Sub-section (3) of section thirty-one of the Act of 1913 (which makes provision for the payment by insurance committees of subscriptions to the funds of an association of insurance committees) shall have effect as though the words "not exceeding in respect of any year ten pounds or such greater amount as the Minister approves" were substituted for the words "not exceeding ten pounds in any one year."
This Amendment has been put down with the object of allowing the Insurance Committee to make increased contributions to these associations. At present the amount of the contribution is limited to £10. In view of the increased costs and the rise in expenses generally, I think we ought to allow them to make a greater distribution.
We should like to know a little more about the duties of these associations of insurance committees, and I should also like to point gout that whereas originally we gave power to expend not more than £10, we are asked to give power to spend without limit. The words are, "power to expend a sum not exceeding £10 in any year, or any such greater sum as the Minister approves." Are we justified in giving these associations an indefinite sum? I am not putting this point in any hostile spirit, but am merely asking for explanations.
I happen to be the Chairman of a Scottish association, and I can testify to the very good work which such associations perform. Every insurance committee in the area is a member of my association, and I know that the association has rendered excellent service to the Scottish Commissioners. Owing to the lower value of money the former contribution of £10 has become quite inadequate and I respectfully urge the House to agree to this discretionary power being left in the hands of the Minister. These associations are very valuable in the administration of the benefits of the Insurance Act.
While not denying the excellence of the work the associations are doing, I should like to have from the Minister some idea of what are the intentions of the department as to the grants which are to be made to these associations. It is a very great power to put in the hands of a Minister to say that he may grant "Such greater sum as the Minister approves." Of course, according to the old legal maxim, the mention of the word £10 would imply that "such greater sum" must be construed as bearing some relation to the sum named. But the words are there, and I would like to know the intentions of the department, and without such an explanation which will get recorded in Hansard and be useful as a reference in case of undue extravagance on the part of the Minister, I am not prepared to assent to the Amendment.
I will respond to the appeal of my hon. Friend. I take it he does not question the general purpose of the grant, for associations of insurance committees do invaluable work. I do not want us to be asked for or expected to give very big grants, and in order that the matter may be quite plain I propose that we should put in "£10 or such greater grant as the Minister approves, but not exceeding £20."
I am obliged to my right hon. Friend for the concession he has made.
Amendment made to proposed Amendment: After the word "approves" ["as the Minister approves"] insert the words "not exceeding twenty pounds."—[ Dr. Addison. ]
Proposed words, as amended, there inserted in the Bill.
I beg to move, after the words last added, to insert a new Sub-section—
(6) Sub-section (2) of Section 33 of the Act of 1913 (which makes provision for the administrative expenses of Committees elected by medial practitioners and persons a supplying drugs and medicines) shall have effect as though the words "such a sum as may be determined by the Insurance Committee with the consent of the Minister not exceeding twopence in all in respect of each year in respect of each insured person entitled to obtain medical attendance and treatment from the practitioners who have entered into agreement with the Insurance Committee" were substituted for the words "such a sum not exceeding one penny in all in respect of each insured person entitled to obtain medical attendance and treatment from the practitioners who have entered into agreement with the Insurance Committee as may be determined by the Insurance Committee with the consent of the Commissioners."
I was not able to follow what the right hon. Gentleman who moved the Amendment said. Perhaps my right hon. Friend will give a brief explanation.
The position is that, out of medical benefit funds which are allotted to the medical men on the panel, they are authorised to ask for the Insurance Committees to allow the sum of 1d. to be allotted towards the expenditure of the different Committees set up. It is, of course, purely their own money that they are dealing with. The penny has hitherto been divided between the medical committees and the pharmaceutical committees. Expenses have, of course, greatly increased, and my submission is that they should be allowed to ask the Insurance Committee to allow up to 2d. instead of 1d. It is their money, and it comes out of their funds, and not out of the general funds of the Act.
I am very much obliged to the right hon. Gentleman. I have not understood it fully, but he has done his very best. I think this illustrates the futility of the Amendment.
A certain sum is allotted to the medical men for benefits, and the Insurance Committees have to distribute that amongst them. As matters now stand, a medical man can apply for the sum of one penny per insured person, but under the Amendment he may apply for twopence per insured person.
I do not like to criticise the right hon. Gentleman, because he is anxious to help us as much as he can. But here is an Amendment which does alter the financial arrangements of the Bill. [HON. MEMBERS: "No!"] I say it does! You give one penny instead of twopence; is not that changing the amount? I have no doubt the Amendment is a very excellent one. It is moved by an hon. Gentleman who has had great experience, and is supported by the Minister. What I protest against is having the Amendment read from the Chair—I venture to say that no hon. Member knows really what the Amendment is—and being asked to say "Aye" or "No" when the question is put. It is a mockery of debate that an important Bill like this should be amended by a manuscript Amendment read from the Chair, the text of which not one single member of the House has seen, and that we should be then asked to give our opinion. I feel quite incapable of giving a considered reason one way or the other. Hon. Members have come to this House and have spoken about making it a useful House and getting rid of the party spirit, and here they have to decide whether this thing is good or bad. The thing is a farce, and it is time somebody protested against it.
I am sorry my hon. and gallant Friend does not understand this proposal. It is not going to involve any additional cost to the State. In connection with the Insurance Societies and Committees, other Committees are set up. These, most of them, have some funds. Now they will get one penny a head more, and the money will be set aside for that purpose. It will cost the State nothing.
My hon. and gallant Friend is not criticising the proposal at all. On the contrary, the more the proposal is made clear to the House, the more we appreciate it and agree with it. But the point my hon. and gallant Friend is making is that it is the sort of thing that ought to have appeared on the Order Paper, so that we might appreciate it and not have it sprung on us at this time in the morning when we are not ready to appreciate the complicated nature of the Amendment, and I think that is a very fair matter for comment.
I should like to say a word to comfort my hon. Friends. I think this is a very good proposal, although I join with my hon. Friends in protesting against putting this thing forward at this time of the morning when the Minister of Health, of all people, should set an example to the country and get people to their beds at a reasonable hour.
Amendment agreed to.
I beg to move, in Sub-section (5), to leave out the word "provided" ["may be provided"] and to insert instead thereof the word "prescribed."
Has this Amendment any meaning at all? If not, it is of no value. If it is of no value, why is it moved, and if it is of value, why is it not explained?
The reason is quite obvious. I am informed by the Parliamentary draftsman that "prescribed" is a better word than "provided."
Is the word "prescribed" or "subscribed"?
The word is "prescribed."
Amendment [CLAUSE 10: ( Amendment of law as to determination of question )] agreed to.
I beg to move, at the end of the Clause, to insert a new sub-section—
"(5) Subsection (16) of section eighty of the Act of 1911 is hereby repeated."
In order to bring this into agreement with the Scottish courts and the English courts, I am informed that the corresponding court in Scotland, which is the Sheriff's Court, has found it necessary to omit these words in order to make jurisdiction similar to that in England.
I am not quite clear as to what the effect of this Amendment is. It seems to me that this repeals a section which allows an appeal to the Sheriff's Court. I am glad to see the Secretary for Scotland here. As this relates to Scotland perhaps he can clear up the point for us, because it seemed to me that an appeal is removed from the Sheriff and now lies with the Minister. May I ask whether that is so?
There is an appeal to the High Court.
There is no High Court in Scotland.
I am much obliged for that reply, but I beg, with very great respect, to ask the Minister of Health if he will make this point clear. As the Minister of Health does not seem inclined to pay any attention to an hon. Member when he asks a question, perhaps I may ask the Secretary for Scotland. I feel sure that the Minister of Health does not wish to be discourteous—
I think the hon. Member misunderstands me.
although I must say I think the way in which he has treated some hon. Gentlemen this evening suggests that he has assumed the cares and manners of a dictator. This matter particularly affects Scotland, and I wish to ask the Minister in charge of the Bill or the Secretary for Scotland whether this proposed repeal of this sub-section does in effect remove the appeal to the Sheriff, and instead of the Sheriff substitute the Minister. I see under Sub-section (2) of this section it says the Minister may on new facts being brought to his notice revise any decision given by him or the Commissioners. If this section is repealed I would like to know whether the rights of subjects are limited by this Act and the appeal instead of being made to the Sheriff is to be made to a bureaucratic Minister.
The hon. Member has made a direct appeal to me on the matter, and I willingly accede to his request. As I understand the situation it is simply this, that under the existing law an appeal lies from the Insurance Commissioners to the Sheriff and from the Sheriff to the Court of Session and the purpose of this amendment his to cut out the intervening appeal to the Sheriff and leave the Appeal to the Court of Session, assimilating the procedure to that in England.
The statement seems very clear, but it does not appear to explain the matter fully. The position seems to be this. In the original Insurance Act certain questions were decided by the Commissioners. Under Section 80, which deals particularly with Scotland, the terminology appropriate to England is adjusted to the terms of Scottish law and Section (80) declares that
"The expression County Court means the Sheriff Court, and in lieu of an appeal from the County Court upon any question of law there shall be substituted an appeal from the Sheriff upon any question of law in terms of Sub-section (17) ( b ) of the second schedule of the Workmen's Compensation Act of 1906. Provided that the decision of either division of the Court of Session shall be final."
I am sorry we have to go into these complicated matters at this time of night. The Ministry have introduced this Bill and are putting it through Report, and proposed at twenty minutes to three to deal with a complicated Amendment of that kind. [ Interruption. ] It is quite useless for hon. Gentlemen to interrupt. The point, as I understand it, is that in the original Act certain questions were decided by the County Court. Section 80 says: Whereas the term County Court has no meaning in Scotland it is to be interpreted as Sheriff Court, and so on. Now the right hon. Gentleman says that section is to be repealed. What is the meaning of it? [Interruption.] Perhaps the hon. Gentleman who has so recently come to adorn this House would explain the sub-section, for, of course, interjections should have some meaning. A mere animal noise contributes nothing. I do not want to be drawn into a debate upon this subject, but I should like the House to consider it. Here is a section which defines what is a county court in England and what is the corresponding court in Scotland. That sub-section is to be repealed. So far as I know, nothing is to be put into its place. In the original Act certain things were to be decided by a county court. Now we do not know what the court is to be in Scotland. What is to be the Court? The hon. Gentleman will perhaps answer the question. It seems ridiculous to repeal the sub-section without putting something in its place.
This makes it more expensive than it would otherwise be. The Sheriff Court is quite capable of deciding, at any rate in the first instance, questions of this sort of difficulty which might arise. The Sheriff Court in Scotland is quite equal to any High Court in England, and should not be put on the same plane as an ordinary County Court in England. It will conduce to more expenses of litigation than was the case under the old Act, and I am glad to see that the hon. and learned Gentleman has not said "Hear, hear," to any of my remarks.
I should like to know whether the Secretary for Scotland really had the sub-section before him when he spoke a few minutes ago. I would direct his attention to the first line which says "The expression County Court means Sheriff Court." The Amendment proposed by the Minister of Health proposes to delete the whole of this expression. If that goes what does the expression County Court mean in Scotland. It has no meaning at all and I cannot help thinking that the Minister of Health will see that he must now put in something in the Bill which will define a County Court in Scotland or what is the Court there is in Scotland to take the place of the County Court in England.
I have failed to make myself clear. The situation is this: As the Bill was passing through the Committee it was deemed proper to cut out the right of appeal which formerly existed from the Commissioners to the County Court in England and from the County Court to the High Court. The County Court disappeared and the right of appeal under the provisions of the Bill in England will now lie direct to the High Court. I hope I have made that clear. In the English part of the Bill the intervening Court, the County Court, disappeared. Very well that having been done in the English part of the Bill it follows and is really a consequential Amendment that this particular section, Section 16, should come into line with the Section which has been referred to to-night. The way to do that is to delete the expression "the words County Court means the Sheriff Court" for the Sheriff Court is not referred to anywhere else and the effect of the Amendment will be that in Scotland as in England in future an appeal will lie from the Commissioners to the High Court in England without the intervening County Court and in Scotland from the Commissioners to the Court of Session without the intervening Court in both cases. The intervening Courts disappear in both cases. It brings this bill into line with the unemployment Act where that system has been followed. We now come direct to the Supreme Court and get a final decision which is not liable to appeal, and you get rid of the expense and time involved in going first to one Court and then to another. Accordingly, the effect of this Amendment is that as in England the County Court has disappeared so in Scotland the Sheriff Court disappears as the intervening Court between the Insurance Commissioners and the Court of Session.
My colleagues and myself are much indebted to the hon. Member for Leith for raising this point and to my right hon. Friend who has made so clear an explanation of the matter. The House was entitled to know what was meant, and that as far as we are concerned ends the matter.
Amendment agreed to.
CLAUSE 13.—(Amendment as to benefit of persons in receipt of disablement pensions and allowances.)
(1) The Minister may by regulations direct that the provisions of section one of the National Insurance (Part I. Amendment) Act, 1915, shall apply to allowances in respect of disablement in the highest degree granted in pursuance of any Order in Council. Royal Warrant, or order relating to the pensions of persons disabled in consequence of the present war as they apply to pensions in respect of disablement in the highest degree, and where a person entitled to a pension granted in pursuance of such an Order in Council, Warrant, or order as aforesaid receives in addition such an allowance as aforesaid and the aggregate amount of the pension and the allowance is equal to the a mount of a pension in respect of disablement in the highest degree that person shall for the purpose of the provisions of the section aforesaid be deemed to be in receipt of a pension in respect of disablement in the highest degree.
Amendment made: In Sub-section (1), after the ward "and" ["degree, and where"], insert the word "that."—[ Dr. Addison. ]
CLAUSE 15.—(Amendment as to additional benefits.)
Part II. of the Fourth Schedule of the Act of 1911 shall have effect as though the following new paragraph were inserted and, at the end thereof:—
15. Such other additional benefits similar to those hereinbefore mentioned as may be prescribed.
Amendment made: Leave out the word "and" ["and at end thereof"].—[ Dr. Addison. ]
I beg to move to leave out the words "similar to," and to insert instead thereof the words "being of the same character as any of."
In the course of the Committee stage the words "such other additional benefits similar to those hereinbefore mentioned as may be prescribed" were inserted. I am glad to say that some of the societies will have a surplus, and will be able to provide additional benefits. As experience has been gathered it has been clear that the category of additional benefits contained in the schedule of the principal Act would not be sufficiently comprehensive.
Convalescent homes for instance are not mentioned. Therefore it is proposed that they should be able to divide the money among other additional benefits similar to those therein mentioned. I am advised that the words "similar to" are not the proper ones to use seeing that there are a considerable number of alternative additional benefits, such as additional benefits for children, and that the words should be "being of the same character" so that you keep the same style of benefit.
Amendment agreed to.
I beg to move at the end of the Clause, to insert a new Sub-section—
"(2) Additional benefits authorised by a scheme under section thirty-seven of the Act of 1911 (which relates to cases where a surplus is found on a valuation) shall not, except as may be otherwise prescribed, be distributed among any persons who were not members of the society or branch on the date as at which the valuation was made."
I would like to ask the right hon. Gentleman for information on the following point. I have in my hand a White Paper—"National Health Insurance Fund'—which shows that, since the Act was passed in 1911, a sum of something like £56,000,000 has accumulated in the hands of the Commissioners for the redemption of the National Debt as investments. Are these surpluses or has the sum anything to do with the surplus under which additional benefits are paid?
I would like a word of explanation in regard to the words in the proposed Sub-clause: "except as may be otherwise prescribed." The reason is that I have in my hand the original Act, and Section 37, to which this new Sub-section applies, is very detailed and very complicated, but the general intention is, I think, very much as described in the Sub-clause with the exception of these words which would seem to me to be capable of a wide interpretation. I think we might ask the right hon. Gentleman for an explanation as to what cases he has in mind in which additional benefits that have accumulated should be distributed to persons other than those in the society. Members of societies have a certain amount of doubt about certain provisions of this Bill.
The point is, of course, that some of the additional benefits could be applied to children of insured persons when they would not be distributed amongst persons who were members of the society. That is the class of case contemplated by these words.
I would like to direct attention to the fact that we are now moving to add sub-section 2 to Clause 15 which has not got a sub-section 1. It seems to me that that is not quite what the self-respect of the House of Commons requires. That is because of midnight legislation. The point of substance I wish to raise is that Section 37 of the original Act says that if societies have a surplus it may be disposed of in certain ways provided in the 4th Schedule. We have just added another additional benefit in Clause 15, and we are now putting in words to say that none of the surplus shall be spent except for the benefit of the people who actually subscribed. That seems very reasonable, but if you look at the 4th Section of the original Act you will find that a great many of the additional benefits which are allowed to be conferred out of the surplus which accrues under Section 37 of the original Act are specifically benefits not to members of the Society but to dependents of members. The first additional benefit which, according to this provision, may not be paid except to persons who are members of the Society or Branch, is "medical treatment for any pesons dependent on the labour of the member." Surely there will be a conflict in the text of the statute if we insert this Amendment. The original Act says that if there is a surplus you may give certain things to dependents. Now we are passing an Amendment which says that nothing shall be distributed to persons who are not members "except as otherwise prescribed." If you are going to make it elastic, why introduce the Amendment? There is plenty of scope, it seems to me, under Section 37 of the original Act. I will read the material words: "A scheme made under this Section may prescribe conditions to be complied with in respect of any particular benefit." If this is going to be rigidly applied it cuts out some of the additional benefits under Section 4. If it is not going to be rigidly applied, but applied elastically, then this is otiose because the Minister has already the power to make a scheme and prescribe the conditions. [ Some laughter. ] I am sorry to trouble the House at this late hour of the night, but the hon. Gentlemen who considers it ridiculous can no doubt explain in what respect my arguments are mistaken. If there is a point of substance I submit that the right hon. Gentleman may perhaps consent to have the Debate adjourned. We have gone a long way with the Bill now, and we must adjourn the Debate to have this point cleared up and then on Tuesday, or after 11 o'clock some other night, we could discuss the matter further.
I may point out that additional benefits must be prescribed in the Act, and therefore the principal clause to which the hon. Member referred is not in question. A certain number of benefits are prescribed in the Schedule, and a certain number of additional benefits are prescribed in the original schedule. The section to which he refers relates only to the additional benefits which we prescribe in the schedule. There will, of course, be exceptions, but it is proposed that in the main the additional benefits shall be for those members whose contributions are provided for. That is the basis of this proposal. It may be that the scheme will provide that their children, and so forth, will share in the additional benefits, and that of course is quite in keeping with the original proposal, but this will prescribe that people who are coming into the Society after the date of the declaration of the benefit will not, as such, be entitled to share in the additional benefits except where otherwise provided for. Valuations are now being conducted and I hope the results will be announced in the autumn. On the valuations it may be that certain societies will be able to declare additional benefits. The societies are required to send for approval, the scheme showing what they will do, and what benefits they will provide, and those benefits must be within the category set out in the schedule.
The words are: "except as may be otherwise prescribed." I take it from what my right hon. Friend said that that is "prescribed by the particular society." If a society finds on valuation that it has sufficient to give these additional benefits, has it the power in itself to do it, or does the Minister of Health have any power of veto over those extra benefits?
That is done in the principal Act. The society submits a scheme and the Minister can approve it or disapprove it, or modify it to secure that it is in keepinig with the provisions of the Act.
You have the veto?
Yes, we have the veto.
Supposing a man is transferred, as many people are transferred, and the man coming into a new society brings with him a transfer showing that his society has also got a surplus; will he bring to the new society the power to have any advantaged which the new society can give him, provided that the surplus of his old society is good enough?
That is hardly germane to the Amendment.
Amendment agreed to.
THIRD SCHEDULE. CONSEQUENTIAL AND MINOR AMENDMENTS. Enactment to be amended. Amendment. The National Insurance Act, 1913:— The following paragraphs shall be substituted for paragraphs ( a ), ( b ), and ( c ):—):— Section 25 (2) "( a ) A rate not exceeding two shillings and sixpence a working day";) A rate not exceeding two shillings and sixpence a working day"; "( b ) A rate exceeding two shillings and sixpence but not exceeding three shillings and sixpence a working day.") A rate exceeding two shillings and sixpence but not exceeding three shillings and sixpence a working day."
I beg to move. in paragraph beginning "Section 25 (2)," to leave out the words "two shillings and sixpence" ["two shillings and sixpence a working day"].
If hon. Members will turn to page 12 of the Bill, they will see there that where the rate of remuneration does not exceed
FOURTH SCHEDULE. PART I. ENACTMENTS REPEALED. Session and Chapter. Short Title. Extent of Repeal. 1 & 2 Geo. 5. c. 55. The National Insurance Act, 1911. Proviso to subsection (i) of section four; sub-section (2) of section eight; subsection (6) of section fifteen; in subsection (12) of section forty-eight the words "and sanatorium benefit"; subsection (2) of section sixty-one; in section sixty-six the words "to the county court with a further right of appeal and the words in such summary manner as, subject to rules of court, and the court, after hearing such parties and taking such evidence (if any) as it thinks just, shall decide the question"; subsection (18) of section eighty-one; the Second Schedule; Part I. of the Fourth Schedule as far as unrepealed. 3 & 4 Geo. 5. c. 37. The National Insurance Act, 1913. Section eleven from "so calculated" to the end of the section; subsection (2) of section thirty-one; section thirty-nine; subsection (1) of section forty-two. 7 & 8 Geo. 5. c. 62. The National Health Insurance Act, 1918. Subsection (1) of section one; in subsection (1) of section twenty-four the words from "and ( c ) the Admiralty" to the end of the subsection.) the Admiralty" to the end of the subsection.
3s. a working day the rates to be paid by the employer will be so much, as is set out. That, of course, was formerly 2s. 6d. a day, and it was altered to 3s. because it was felt that, in view of the increased cost of living, the low-level rate of 2s. 6d. should be raised to 3s. In the next line it reads "where the rate of remuneration exceeds 3s. but does not exceed 4s." The figures altered there were 2s. 6d. and 3s. 6d., being put up 6d. in each case. The Amendments were not in order on the paper, and it is necessary to make consequential amendments in the Third Schedule in keeping with those in the First Schedule. It is in consequence of these changes that the words are to be inserted here.
Amendment agreed to.
Further Amendments made: Leave out the words "two shillings and sixpence" ["two shillings and sixpence but not exceeding"], and insert instead thereof the words "three shillings."
Leave out the words "three shillings and sixpence", and insert instead thereof the words "four shillings".—[ Dr. Addison. ]
I beg to move, in paragraph beginning 1 and 2 Geo. 5 c. 55, after the word "question" ["shall decide the question"] to insert the words "Subsection (16) of Section eighty."
This is a small point again. It arises on a former Amendment which we have made.
I am glad our attention has been drawn to this, because I want to ask the Secretary for Scotland a question. We take explanations given by the right hon. Gentleman ex-cathedra. We do not dispute them for a moment. But the point is this. We were told by the Secretary for Scotland that under this Bill as amended we had agreed to repeal Sub-section 16 of Section 80, which applied to Scotland, because the county court had disappeared. Now we come to the Schedule and find that the Court is defined. I understand now that the proposal is to insert the very Sub-section which we repealed earlier in the Bill. This leaves me in utter confusion. In the Schedule certain things have to be done and we are re-inserting the definition of the court.
I agree with my hon. and gallant Friend on the point at issue, but it is not really confusion. It is purely a question of drafting. We have already repealed by the Amendment, which I explained earlier, a certain Sub-section. To many of us it may appear that that was sufficient, but I understand that from the drafting point of view it is desirable that, not only should the Amendment appear in the Bill, but that in this Schedule it should appear also. Therefore, this Sub-section, which has already been repealed, in accordance with sound rules and draftings, ought also to appear in the Schedule.
Amendment agreed to.
Further Amendment made: In paragraph beginning "7 & 8 Geo. 5, c. 62," after the word "one" [Sub-section (1) of Section one"], insert the words "Section 9."—[ Dr. Addison. ]
I beg to move, in the paragraph beginning "7 & 8 Geo. 5, c. 62," at the end, to add the words "Subsection (1) of Section forty-one."
This Amendment arises in consequence of altering the 1d. for which doctors may apply to 2d., and it is in order to embody this earlier alteration.
I understood that the Section referred to was 45. I have the principal Act here, and I see that that Section reads as follows:
"Special provisions to aliens."
I do know now, if that is the Section, what the right hon. Gentleman means. He may mean an extension of that admirable and liberal measure for the exclusion of aliens, but I put it to the right hon. Gentleman that the first Amendment on this point was moved by an hon. Gentleman below the Gangway; nobody heard it, no one understood it, no one seconded it, and the Chair did not put it.
I think we had better not go back to that.
The Section is 41.
Amendment agreed to.
Motion made, and Question proposed, "That the Bill be now read the Third time."
I beg to move "That the Debate be now adjourned."
4.0 A.M.
I understand that the Motion has been put from the Chair, and we have had a discussion on which I can, on the whole, congratulate the House. I have gone through a great number of all-night sittings in the course of my experience both on the benches and in the Chair, and discussions have been carried on to-night with great good humour, and what will be of corresponding benefit to the public, of not having the slightest chance of hearing what has taken place. We have also had some valuable elucidation of obscure points, which has been extracted after close examination. The House has gone through what it intended to do, to take the Report Stage on this measure. I never thought that they were going to get the Third Reading through, but it seems to be necessary that that should be so. With regard to the Profiteering Bill, which we took in its two stages, there was I admit—no matter how it was fought out—a really pressing difficulty, that the existing Act expired on Wednesday. It was impossible, unless it left the hands of this House to- day, to go to another House for it to pass through its stages before Whitsuntide and we could go profiteering until the new Bill was passed. However desirable from an individual point of view, it might have damaging effects upon the public. No one could take the risk of that. What is the reason for taking the Third Reading at this hour? There must be some overmastering reason which impels the Department to thrust on the back of its Secretary and the Leader of the House so large an additional burden on a very patient assembly. The real public point which I urge is this. This is an important measure. It received the Second Reading after a friendly but perfunctory discussion.
Late at night.
What happened in the Committee upstairs was that the whole thing went through in one sitting. For one reason or another there were not many members present.
Thirty-one.
At any rate, there was no really close examination of the provisions of the Bill. I do not know when that took place, but I suppose it is about the 27th April. I see it was ordered to be printed then. The vitally interesting point of this Bill is the new scheme in connection with the treatment of sanatorium benefit. Of course I cannot go into the merits of that question on the proposal which I am laying before the House, but there is no means of acquainting the people of the country with a vital and deeply interesting proposal of that kind like the public Press, and Sir, it is available to few of the public Press. The newspapers know thoroughly well that that particular subject is of the deepest interest to hundreds of thousands, probably millions, of the people of this country. There should be an hour's debate on that question, not more, an explanatory statement by the Minister in charge of this Bill, as I said before, a man exceptionally qualified to make that statement by his administrative experience. His whole-hearted warm sympathy with the suffering, and his long professional experience coupled with his Ministerial authority makes him specially qualified to make such a statement as that. It could get into the public Press, and be the means of instructing the public in this matter of vital interest. All I am asking for is this, that next week there shall be an hour's debate when he shall make half-an-hour's statement on that really great question. I can guarantee for those for whom I can speak, and that have borne the heat and burden of this discussion, and no doubt for my hon. Friend the Member for Spen Valley, who speaks also with exceptional authority on it, that there would go out from this House—a great sounding board on this question—a thoroughly informed statement on the matter. To take the Third Reading to-night will mean that there will be no notice taken in the Press other than that the House of Commons had an all-night sitting, and that the legislators "went home with the milk in the morning." Of a very valuable discussion no information would appear. An hour's debate of that character is all that is necessary to complete the labours of the House on that question. On that ground I beg to move.
I do not wonder that my right hon. Friend has intervened as he has, and I can assure him that I am as sorry as he is that we have had to have this discussion at this time of night. With regard to the question of sanatorium benefit, I entirely agree that would be altogether to the public advantage if such discussion is arranged. So far as the Ministry of Health are concerned, nothing would please them better. So far as the Bill is concerned the situation is unfortunately this—and I am going to appeal to my right hon. Friend to withdraw his motion and let us have the Third Reading solely for this reason—when this Bill was read a second time it got upstairs to a Committee and was not perfunctorily examined, but was carefully examined. There were several pages of Amendments dealt with expeditiously but fully. Unfortunately the additional benefits are to come into operation on July 5th. The financial arrangements are such that with respect to certain matters as the administrative expenses of the societies the finances are so arranged that they date back to the 15th January, the beginning of the next year. In order to bring the Bill into operation on July 5th it must be brought on the Statute Book by the House immediately, otherwise it will not be possible to do so. In the limited number of weeks between now and 5th July we have to distribute to sixteen million insured persons various forms, the stamps required, and the societies themselves have to prepare their cards and all the rest of it. We have cut down the time to the least number of days, and it is quite clear that it cannot physically be done even with extra pressure on the printing trades of the country unless we get it passed through before the adjournment. I am sorry it is so—just as sorry as my right hon. Friend. That is the fact. If it were put off till next week the other House would not be able to deal with it, and we could not get it before the adjournment, and that is why I ask him to give the Third Reading now and not postpone it to the next week. It is most unfortunate, but it is inevitable, unless we are to postpone the operation of the Bill and the increased benefits which are wanted by every party in the House. It is purely a physical difficulty. Owing to the enormous task which has to be carried through before that date it is necessary to have the Bill on the Statute Book before the Whitsuntide adjournment. That is the only reason why I ask the House to let us have the Third Reading to-night.
I would join with the right hon. Gentleman in appealing to have the Bill read a Third time to-night. I have had deputations from the big friendly societies urging that the Bill should be placed on the Statute Book at the earliest possible moment. They have an enormous amount of work to do, and if there is delay they would not be able to overtake it. I agree that, with regard to sanatorium benefit, it would be well if we could have a discussion, but all the same, I take it that the benefit will go on as at present, and when the new Bill is introduced there will be time for a full discussion.
I am rather surprised at the statement made by the right hon. Gentleman. I have been in a majority myself, and I know what a minority has to suffer. One of our Ministers once said that "minorities must suffer; it is the badge of their tribe." I am quite prepared to wear the badge, and to wear it bravely, but I am surprised at the hon. Gentleman (Mr. Tyson Wilson), who has just entered the House, and appeals to us who have debated the matter, I hope in good temper and I hope we have thrown some light on matters. But the hon. Gentleman who comes and appeals to us is a whip.
I have been in the House as long as the hon Member.
Not to-night.
The hon. Member has been in the House for many years, but to-night the hon. Gentleman has only been here for about ten minutes and there have only been about three members of his party present throughout the whole debate. The hon. Gentleman is a whip, whose business it is to organise the business of the House. Is it our fault that the Bill is being taken at a quarter-past four o'clock? It is one of three Bills we have to take unless something dreadful is to happen to the country. It is not our fault. We did not decide that nothing was to be done between 20th April and 14th May. Moreover, suppose we do not go through the farce of passing the Third Reading to-night when there is no opportunity of discussing the important changes being made shall we lose anything? Nothing at all. The Bill can well be put down for Monday. We have got to pass the Bill before the adjournment, and we are just as keen to see it passed as anyone, but it should be done in proper form. It would only take an hour on Monday, and some dignity would be lent to our proceedings, I appeal to hon. Gentlemen of all parties to support us in this motion, which if not accepted we shall of course press to a division.
I join in the appeal which has been made to the Minister. The importance of this question of tuberculosis is such that it ought to have a first-class discussion. It has not really been discussed in this House since the time of the original National Health Insurance Act, and I am sure that if that Act had done nothing more than to bring the question of the treatment of tuberculosis prominently before the country it was well worth bringing forward. This question of the administration of tuberculosis by local authorities is of so much importance, and the public and the local authorities have not had time to consider it, that it would be of very great advantage if a reasonable time were given for discussion. The public should be educated on the great importance of the subject, and it was never so important as to-day.
I would put one point to the right hon. Gentleman—the effect of the transfer of the sanatoria upon those areas in Scotland of low rating value. It is a question, as the Secretary for Scotland knows well, that excites great interest throughout the Highlands, and I want to make this suggestion. If he is going to get his Third Reading now, will he arrange that when this Bill comes on for Second Reading in another place, the Minister in charge should make a full explanation of what the effect of this transfer will be upon those areas of low rateable value in Scotland?
I have one point I wish to put. This Bill ought to be printed before we take the Third Reading. There has been an unprecedented number of Amendments moved on the report stage by the Government, some of which have been of a very complicated character. There have been new clauses which very few hon. Members can understand, because we have never been able to read them.
Question again proposed, "That the Bill be now read the Third time."
Manuscript Amendments, complicated in character, have been added in considerable numbers. For these reasons the Bill ought to be printed before the Third Reading is taken. Proposals have been made by which it could be taken early next week. The Chief Whip of the Labour Party quoted certain friendly societies in this connection, and I wish to quote another group of friendly societies as a counter blast to what he said, speaking, I am sure, without mature consideration. This is a letter from a council representing federated societies who administer this Act with over 60,000 members—
"My Council feel that the matter demands closely watching by all who desire to see sanatorium benefit thoroughly, effectively and sympathetically administered."
Under these circumstances I think, before the Third Reading, a Bill of this immense importance should be seen in print when Members' brains are clearer.
Question put, "That the Debate be now adjourned."
The House Divided: Ayes, 9; Noes, 93.
Division No. 114.] AYES. [4.25 a.m. Barnes, Major H. (Newcastle, E.) Entwistle, Major C. F. Murray, Dr. D. (Inverness & Ross) Benn, Captain Wedgwood (Leith) Johnstone, Joseph Cowan, D. M. (Scottish Universities) Kenworthy, Lieut.-Commander J. M. TELLERS FOR THE AYES.— Elliot, Capt. Walter E. (Lanark) Maclean, Rt. Hn. Sir D. (Midlothian) Mr. Hogge and Major Mackenzie Wood
NOES. Adair, Rear-Admiral Thomas B. S. Fraser, Major Sir Keith Nall, Major Joseph Addison, Rt. Hon. Dr. C. Fremantle, Lieut.-Colonel Francis E. Neal, Arthur Archer-Shee, Lieut.-Colonel Martin Gibbs, Colonel George Abraham Nicholson, Reginald (Doncaster) Baird, John Lawrence Gilmour, Lieut.-Colonel John Parker, James Baldwin, Stanley Lloyd-Greame, Major Sir P. Parry, Lieut.-Colonel Thomas Henry Balfour, George (Hampstead) Greenwood, William (Stockport) Pratt, John William Barnston, Major Harry Greig, Colonel James William Pulley, Charles Thornton Bell, Lieut.-Col. W. C. H. (Devizes) Grundy, T. W. Purchase, H. G. Boscawen, Rt. Hon. Sir A. Griffith- Hanna, George Boyle Roberts, Rt. Hon. G. H. (Norwich) Bowyer, Captain G. E. W. Hennessy, Major J. R. G. Rose, Frank H. Brittain, Sir Harry Henry, Denis S. (Londonderry, S.) Roundell, Colonel R. F. Bromfield, William Herbert, Denis (Hertford, Watford) Royce, William Stapleton Brown, Captain D. C. Hirst, G. H. Sanders, Colonel Sir Robert A. Brown, T. W. (Down, North) Holbrook, Sir Arthur Richard Shaw, Hon. Alex. (Kilmarnock) Bruton, Sir James Hope, James F. (Sheffield, Central) Sprot, Colonel Sir Alexander Buckley, Lieut.-Colonel A. Hope, Lt.-Col. Sir J. A. (Midlothian) Stanley, Lieut.-Colonel Hon. G. F. Casey, T. W. Hotchkin, Captain Stafford Vere Sugden, W. H. Coates, Major Sir Edward F. Jodrell, Neville Paul Sutherland, Sir William Colfox, Major Wm. Phillips Jones, William Kennedy (Hornsey) Thomson, F. C. (Aberdeen, South) Courthope, Major George L. Law, Rt. Hon. A. B. (Glasgow, C.) Wallace, J. Craig, Colonel Sir J. (Down, Mid) Lindsay, William Arthur Waring, Major Walter Davies, Sir Joseph (Chester, Crewe) Lort-Williams, J. Wheler, Lieut.-Colonel C. H. Davies, Thomas (Cirencester) Loseby, Captain C. E. Whitla, Sir William Dawes, Commander Lynn, R. J. Williams, Lt.-Com. C. (Tavistock) Dewhurst, Lieut.-Commander Harry Maclean, Neil (Glasgow, Govan) Wilson, Daniel M. (Down, West) Edge, Captain William Mallalieu, F. W. Wilson, Colonel Leslie O. (Reading) Eyres-Monsell, Commander B. M. Moore-Brabazon, Lieut.-Col. J. T. C. Wilson, W. Tyson (Westhoughton) Falcon, Captain Michael Morgan, Major D. Watts Wood, Sir H. K. (Woolwich, West) Farquharson, Major A. C. Munro, Rt. Hon. Robert Wood, Sir J. (Stalybridge & Hyde) Ford, Patrick Johnston Murray, Lt.-Col. Hon. A. (Aberdeen) Forrest, Walter Murray, John (Leeds, West) TELLERS FOR THE NOES.— Foxcroft, Captain Charles Talbot Murray, Major William (Dumfries) Lord Edmund Talbot and Mr. Towyn Jones
propose to bring forward one or two points which I think are of some importance on the third reading of this Bill. I have a very short letter here from which I propose to read one or two extracts. It explains better than I can the point to which I ask for an assurance from the Minister of Health. It is from an Insurance Council representing affiliated Societies with a membership of 60,000. The letter says:
"The Bill so far as it relates to increased benefits is only what the approved societies have now been expecting for some time, and to that principle they have no serious objection. But my Council have—
I seem to have heard the right hon. Gentleman read that letter before.
What you have heard me read, Sir, was a short extract which I used as an argument in favour of the adjournment of the Bill. The most relevant part, to the layman, of that letter is this: It is written by very practical men who go through the heat and toil of the administrative work and have done so with great success. It continues:
"We regard with considerable distrust the transfer of these important benefits—
I am sure I heard the hon. Member read this letter before, when he moved to leave out Clause 4. He must have some regard to Standing Order 19 with regard to repetition.
I do not wish to argue with you in any way, Sir, but I did not read, in any part of my previous speech in the House to-night any part of the letter, except an extract on the motion for the adjournment. I do not propose to pursue the matter further, but I will endeavour to put the arguments on behalf of the 60,000 members of the Insurance Act in my own words. The assurance they ask for is this—
called the attention of the House to the tedious repetition of his own arguments on the part of the hon. and gallant Member for Hull, Lieutenant-Commander Kenworthy, and directed the hon. Member to resume his seat.
There are certain points to be put on a third reading debate and we protest against the third reading debate on so important a Bill being taken at 25 minutes to five o'clock in the morning. We moved the adjournment of the Debate in order to give the Minister of Health the opportunity which he, in his speech, said he and his Department were anxious to have, of making a public declaration with regard to the question which my hon. and gallant Friend has attempted to raise on the Third Reading. I invite the right hon. Gentleman to make that public statement now. It is his only opportunity and as a responsible Minister of a responsible Government Department I should have thought that nothing would have given him greater pleasure than to take the first occasion that offered to make this statement for the benefit of the public. We have sat up for a long time. Everyone of us is quite anxious to sit up a little longer. Surely the hon. Gentlemen who sit behind the Coalition Front Bench are prepared to support their own Government in making a public statement which they desire to make on so important a question as sanatorium benefit and we are perfectly prepared to keep a quorum in this House—[HON. MEMBERS: "Divide, divide!"]—Ain order that my right hon. Friend's statement may appear in the evening papers if not in the morning papers. I would not in any way come between him and the publication on the afternoon of a Friday on which there will be little or no other Parliamentary business.
I have sat here fairly patiently during the night. I declined, however, to go into the Division lobby for the simple reason that I desire to dissociate myself from the tactics pursued on this side of the House. We have been reminded of the clock a dozen or a score of times. If reasonable tactics had been observed from this side of the House, we could have finished the debate and been in bed by this time. It may well be that I am not yet an old enough Parliamentary hand and am not trained to these lines of procedure, but my first impressions are not favourable so far as the individuals are concerned who have taken part in the debate on this side of the House this evening. This Bill particularly affects the industrial population of the country. Those of us associated with the Labour party on this side of the House are closely connected with the industrial organisa- tion. Many of us are in close contact with the administration of the former Act. No single speech has come from this side of the House on this question. I deplore, as much as any hon. Member, that a Bill of this importance has had to be taken under these conditions, but, after all, I believe in making the best of the circumstances in which we find ourselves. Now we, on this side of the House, have our views, and very definite views, about this Bill. We tabled in Committee something like 20 amendments, but we did not find the Minister of Health in a very charitable mood. We discussed the matter, and decided that we would not push our amendments any further. At least we had a point of view upon this Bill to present. We think the benefits that have been put forward altogether inadequate. The cost of living is up 140 per cent. The benefits of the Insurance Act have gone up 50 per cent.—altogether unequal to the calls made upon our sick workpeople in these days. The disablement benefit has gone up from 5s. to 7s. 6d. The Financial Secretary to the Treasury in March last intimated to this House that it cost 20s. 6d. a week for the pauper, 30s. 10d. for a convicted person, 16s. 8½d. for a pauper lunatic and £2 9s. 9d. per week for a person sentenced to penal servitude, and even since then we have decided that the minimum on which an Old Age pensioner can live is 10s. a week.
We come to the position of a person who is sick and who is totally incapacitated, and who has to exist on 7s. 6d. a week. We consider that unequal to the prevailing circumstances which have to be met. When the matter was before the House on the Second Reading, I ventured the personal opinion that, in order to increase the maternity benefit, which, I believe, is the most popular benefit under this Act, I would have reduced some of the benefits of married women in order to give a concession in that direction. As far as I am concerned, I would do it now, but I do not believe it is necessary. The investigation one has made since the Second Reading of this Bill proves to me conclusively that increased benefits could be given in this direction without injuring the finances of the Bill. The whole actuarial conditions of the Bill are improving. Young lives are coming in each day a good deal more rapidly than older lives, and every year improves the financial foundations of this measure, and there is no reason why these benefits should not be extended on that account. The Member for Newcastle has mentioned that there are accumulated sums of money. There is no need for these contingent liabilities to be provided for, and instead of accumulating funds we ought to be using those funds for increased benefits, having regard to the margin of safety that is desired. We are glad to have the concession from the hon. Gentleman, which has been made to low wage earners, which throws a greater responsibility for contributions on to the employer and relieves the contributor in the opposite direction, and we also believe that some measure of equal benefit ought to have been conceded to men and women alike, but unlike our friends here who express it from the front bench we were ready and believe that the increased benefits should have the counter-balancing effects of increased contributions.
We ought to tackle the approved societies of the country. At the institution of the Acts a rough and ready method had to be adopted in finding approved societies. Goose clubs, fishing clubs, anything with a numerical qualification who could fulfil the requirements of the Act, were employed. I understand 900 have gone out of existence. It would be a good thing for the Act if more went out of existence and not the smaller ones either. The provision of the Act is that it must provide, to the satisfaction of the Commissioners, for its affairs being subject to the absolute control of its members. Tell me whether there is an approved society that fulfils that condition. I agree that there are trade union societies and friendly societies in which there is something of democratic control, but tell me of an approved society in the hands of the great industrial insurance companies where the members have one scintilla of control in the operations of the concern. One of the difficulties of working this Act on the part of the insured person is getting the redress of grievances of these people. I have here a bundle of communications dealing with the injustices perpetrated on the insured persons by the Prudential Society. How is the member of the society to have a redress? The Court of Appeal is too far away and they cannot reach it. They put up with it. The approved societies are going to be at sixes and sevens with each other very shortly. There is a flat rate of contributions and benefits now, but there is going to be one rate here and another there according to the valuation. The whole thing points to eliminating as quickly as possible all approved societies and making in the direction of one aproved society under the control of the right hon. Gentleman opposite. Insurance Committees ought to have been dealt with in this Bill, and experience shows many things that ought to have been dealt with. Insurance Committees have paid 1s. 3d. per member for sanatoria treatment. Now this sanatoria treatment is now going to be undertaken nearly wholly by the local authorities. I presume that the cost of that treatment is going to come from the local rates and the national Exchequer. Where is the 1s. 3d. going? Who is going to get it? In what direction is it going to be spent? Is it going in the medical benefit? Is it going to be paid by the Insurance Committees into some fund or other?
The obvious thing would be to extend medical benefit not only to members but to dependents of members. There is the question of the duty and responsibility imposed on the Insurance Committees. The governing principle in this Act ought to be the prevention of sickness. Insurance Committees are entrusted with educational work but very little has been done and they should be called upon to meet all their responsibilities in those directions. We have heard a lot about the doctors this morning and very little about insured persons. We owe a debt of gratitude to members of the medical profession and no criticism I may make here is directed against the medical profession as a whole. I believe the medical profession lift their duties and responsibilities altogether above the mercenary aspect, and I also believe that if the medical men of the country had a straight edge with the community they would be better off financially than they are at present. The difficulty of the insurance system has been the working of the panel system by a minority of the medical men of the country. The perfunctory method in which they have administered this Act—I was almost going to use a strong term—It has not been what it ought to have been and it has not been conscientious service. The machinery of the Act and the regulations are quite adequate if put into operation. Doctors do not appear to read the regulations, and when they do read them they do not appear to act upon them, and the irritation caused to insured persons can hardly be credited. The failure to interpret the regulations, the slackness in granting service, and, above all, the special days and special hours which the doctors impose upon panel patients were never intended. The dragging of insured persons to surgeries when they ought to be treated at home is another difficulty of the panel system. From close observation of what is happening in this direction, I have come to the conclusion that it is exceedingly difficult to blame them. A medical practitioner often finds that he has a private patient and a panel patient in the same house, and he has to endeavour to balance his duty to the State and retain his hold in the particular household. One of the concessions made in this Bill appointing independent medical referees will go a long way to easing the position from that point of view. Another factor enters into the situation. When a private practitioner attends a private patient he is paid according to the services rendered. If that service is not efficient and satisfactory he can be turned away and another practitioner called in. But under the panel system a doctor is secured a certain rate per patient. His payment is independent of the quality of the services rendered. I would suggest that the way out of the difficulty is to endeavour to get certain members of the medical profession to take on nothing but panel practice. I believe that if the conditions were made sufficiently attractive medical men would be found who would undertake that work, and, having regard to the development in that direction, we should be laying the first stage towards a State medical service which everyone considers inevitable who investigates this aspect of the case.
There is this point also to be considered, that while present conditions exist we ought to insist upon medical men rendering due tribute for the payment that they receive. A year or two ago they received 3s. 6d. per head from the friendly societies, and the doctors sought the work. At present they are receiving something like 11s. per head of the insured persons, and, having regard to the fairly liberal scale of remuneration, decent service ought to be rendered. But even with all its limitations, the Act ought to be extended in other directions. We are not unmindful of the great benefits it has conferred on the community. An insured person who feels himself suffering from some minor ailment now goes straight to a doctor. Disease is consequently frequently arrested in its early stages. This Act is closely associated with the name of the Prime Minister, and I believe his name will live in this Act long after it is forgotten in connection with many of the things which are considered as his greater achievements. We would like to see the Act further extended. We do not believe that this Bill, the fourth instalment of National Health legislation, should be considered the last. We want to see the Minister of Health come again, and before very long, with another amending Bill to tackle the big gaps which are at present to be found. The working people do not want sickness benefit. They want keeping well. Medical men will render an infinitely better service if they keep people well rather than treat them when sick. We think also that the machinery of the Act can be extended in other directions. The Government has recently had a report on the work of the Industrial Insurance Companies. They cannot ignore that report. It is so damaging an indictment of the work of the great industrial insurance companies in the services they are assumed to render to the community and the plunder they take for doing it, that nothing less than powerful insurance interests in this House can prevent the Government taking this matter in hand. There is the machinery in the National Health Insurance Act, and there is no season why the State should not take over the work of industrial life insurance and incorporate it into the Act. There can be no higher function than to endeavour to promote a high standard of public health, and if the Minister of Health would be a constant challenge to all the factors of living and working which operate adversely on the health of the community we on this side can guarantee a strong body of opinion ready to assist him.
5.0 A.M.
The hon. Gentleman who has just sat down has made a very interesting and very useful speech. He has made a large number of points about this Bill, and has suggested from the depth of his knowledge a great many improvements that should be made. But the hon. Gentleman has been in the House the whole evening and has not moved a single Amendment to the Bill. That is precisely the frame of mind which explains the failure of the Labour party in this House. After all, this is the Third Reading of the Bill, and this is not the moment when any useful purpose can be served by going into details. But what is the use of the hon. Gentleman accusing us. We have done our best with some Amendments. We have move4 Amendments to improve the position of women and to help a man who has emigrated, and the Amendments have been discussed bonâ fide, and then the hon. Member comes here and accuses us of wasting time. He also declares that there are many points in the Bill which he desires to see amended, and yet he has not made a single Amendment to-night. That, I say, proves the futility of sitting here till half-past four and making half-an-hour's speech on the Bill without putting forward any definite practical proposal for amending it.
I am sure all of us have listened with great interest to the very instructive speech of the Member for Spen Valley (Mr. Myers), and I rise to make one observation upon what the hon. and gallant Member has said about this Bill. A considerable number of the Government Amendments put down to-night in my name were put down in consequence of the serious and clear discussions which we had in Committee, where I undertook to meet certain points which were raised. Many of them were raised with great information by the Member for Spen Valley. Though his name does not appear here on the Amendments, it is fair and right to say that they were put forward in consequence of the useful and instructive suggestions he made in Committee.
What about the statement on sanatoria?
I think I made a statement of considerable length when the hon. Member was not present some hours ago, and I said I should be prepared—
On the first opportunity!
If the hon. Member continues to interrupt, I will not go on.
I think it only right to say that the Labour party decided I not to put down any Amendments on the Report stage for the reason, solely, that we considered we had done sufficient by bringing forward during Committee the points we desire to see in the Bill. There was no desire to waste the time of the House. If we could not have got them we were quite prepared to use the same tactics that have been employed during to-night and this morning; but we resent entirely the taunt that has been made tonight that we did certain things upstairs and have not been doing the same things downstairs. We did what we could upstairs, and these things have had their object completed by helping to shape the Bill, as the Minister for Health has said. Consequently, there was no reason for a large number of the Members of the Labour Party to intervene in Debate. Otherwise we would have kept the hon. Members sitting on the Front Bench—who have been left by their respected Leader, I see—a much longer time to continue their opposition.
It is a totally new theory of Parliamentary Government to suggest that discussions on the Report stage are wasting time. Only a certain number of Members of this House are on the Committee. Those on the Committee have had the opportunity to discuss the Bill upstairs; but it is also the duty of this House thoroughly to discuss the Bill when it comes down on the Report stage, and so far as hon. Members on this side of the House are concerned, the part they have taken in Debate has been taken solely with a view to making this Bill a better Bill.
Question put, and agreed to.
Bill accordingly read the Third time, and passed.
Ejection (Suspensory Provisions) (Scotland) Bill
Order for Second Reading read.
I beg to move, "That the Bill be now read a Second time."
My excuse for troubling the House with this Bill at this hour is that the measure is urgently required. So urgent is it, and also so simple, that I hope the House will give me all the stages of the Bill before we part. The circumstances under which it is introduced are quite familiar to my Scottish colleagues. The Salisbury Committee recommended that the limits of protection which are accorded by the Rent Restrictions Act should be raised in order to cover houses which are not at present protected by these Acts. The present limit of protection of Scotland is up to £60, and the recommendation of the Salisbury Committee is that that protection should be extended to houses the rental or rateable value of which is £90. The tenancy of many of these houses in Scotland will expire on the 28th May, the 28th May being a Scottish term, and unless a Bill giving effect to the recommendations of the Salisbury Committee is passed before that date, many persons whom it is desired to protect in Scotland will fail to obtain protection. Manifestly it is impossible before the Whitsuntide Recess to pass a Bill giving effect to the recommendation of the Committee as a, whole, and the House will observe also, and I think will agree, that no retrospective provision in any such Bill could assist in solving the problem. If these people are turned out of their houses, the mere fact of putting a retrospective provision in a general measure would really be of no effect at all. Accordingly, this Bill is introduced with the view of giving protection to those persons in Scotland who occupy houses of between £60 and £90, and, so to speak, stereotyping the situations there until the general measure to which I refer has been introduced by the Government for the whole Kingdom. This Bill in its first Sub-section prohibits the granting of an order of ejection from any house between £60 and £90 in rental, so long as the tenant pays rent in accordance with his contract and also carries out the other terms of his tenancy, subject only to the grounds which are set out in Section 1, Sub-section 1 of the Rent Restriction Act, 1919. In other words, the Bill applies the protection of the existing law to houses which are rented at a figure between £60 and £90. That is the effect of the first Sub-section. The second Sub-section contains a definition of the houses to which that protection shall apply. The third Sub-section deals with quite a different matter. In places like Ardrossan, Troon, Saltcoats, and, I think, Burntisland, there are a certain number of houses which were requisitioned by the Admiralty for the purpose of housing the workmen who during the War were engaged upon the constructions of War works, and housing their families as well. While the Admiralty possession of these houses ceases on the 28th May, the rental of many of them falls within the rental which is set up in the Rent Restriction Act. I am advised by the law officers of the Crown that these houses are not protected under the existing Act. I agree that the ejection of these workmen on May 28 of this year would be a very serious hardship. No alternative accommodation is open to them, and these houses, after all, generally speaking, are only occupied during the holiday season, and accordingly it seems proper to protect them in their houses from ejection up to the time to which the measure I referred to is introduced; a measure which may possibly deal with this matter for the whole country, not only Scotland, but England as well. In deference to the convenience of the House I have compressed these observations into as small a compass as possible. At the same time I have given the House an indication of what the Bill contains and as it is clear that unless this Bill passes through all its stages to-night it cannot become law in another place, in the limited time at our disposal, I venture to ask the House to grant their indulgence in this comparatively small but important matter, affecting Scotland alone, and to give the necessary facilities in order to pass the Bill through all its stages.
I merely rise to ask the Secretary for Scotland a question relating to the conditions in Scotland, particularly in the large business centres, which is causing a great deal of agitation and resentment. As to the Bill which he has presented to the House I am certain the House will agree to let him have it in all its stages in order to allow the particular conditions to which he has referred remedied. I want to know if it is the intention of the Government to pass similar legislation with regard to certain business premises? At the present time, the business community of Glasgow is in a perfect furore because many businesses have been served, either with notices to pay an increase of rent of 250 per cent. in some cases or else they have been told that they must purchase the premises or quit them. All the things that happened prior to the passing of the Rent Restriction Act of last year have again come into vogue with regard to business premises. I have received a telegram from one place to-day, which has been served with an ejection notice for the 28th inst., without any option either of paying an increased rent or of purchasing the premises. They are compelled to take action as well as they are able. In Buchanan Street, the business street of Glasgow, where a large number of firms are situated, rents of £30 have been notified to increase to £120. Business people who have been in a shop for over 50 years and who have been able to build up their successful business, now have been served with such notices or else they have been told to purchase or get out altogether and allow someone else who will buy their premises to come in in their place. We should like to get some statement from the Government as to whether they will stop these wholesale evictions and the smashing up of businesses and will give security to those who are endeavouring to carry out the Government's intentions of getting trade back to its normal level once again. I want to ask the Secretary for Scotland if the Government have any method or plan to propose, or do they contemplate bringing in any legislation that will give security and alleviate this unrest? Any statement made by him that would give a promise of security of tenure would have very considerable effect.
I agree as to the great importance of the point raised by the last speaker. The Secretary for Scotland is no doubt aware of the amount of correspondence received by hon. Members on this question, and I hope he will see his way to make some statement of a helpful kind. I agree most heartily with the Secretary for Scotland as to the necessity for his Bill, but I do not agree with his bringing forward a Bill of this kind at 20 minutes past five o'clock in the morning, and almost at the very limit of time at which it could be introduced. The whole question is of such importance that if we had a Parliament sitting in Scotland—which I hope we shall have in the near future—at least two days would be given of careful discussion in reasonable hours and not at the fag-end and dregs of a day filled up by purely English business. I think that is one of the penalties we pay for the English influences—whatever may be their excellencies—which are creeping over the face of Scottish legislation. They are stamping their mark on quality as well as quantity and they have left their mark on this Bill in a way to which I must refer. It seems to me to be one of the grave difficulties in the Scottish Courts; they have left their mark in the drafting of this Bill. Some of the terms of this Bill are quite unknown to Scottish law. For example, the English word "mortgage" occurs in Clause (1), para. 1 of this Bill. I will guarantee that word is unknown and abhorrent beyond the Scottish border. I waded through that compendium of Scots law Green Cyclopædia of Scots law this evening, and I find amid all the subjects on Scotch law on which these volumes treat that the word "mortgage" never so much as occurs, and yet we have a Bill applied to Scotland, and Scotland alone, which talks about mortgages. As a further illustration of the great inconveniences of this sort of legislation, I would refer the House to Sub-section (2), line 18, where the wording of the Bill includes the curious phrase "within the curtilage of the dwelling house." I do not know what significance English lawyers attach to the word "curtilage." The significance which Scottish lawyers attach to the word seems to me, from the authorities I consulted, to be of the vaguest description, and this vague word is introduced in such a way as inevitably to raise the greatest possible confusion in the Courts. I would ask the House to consider the words of Sub-section (2)—"That this Act applies to houses or parts of houses in Scotland let as separate dwellings where such letting does not include any land other than the site of a dwelling house and a garden or other premises within the curtilage of the dwelling house." The garden and other premises are to be within the curtilage. It is necessary, even at this hour of the morning, to know what we are legislating about. I consulted the Encyclopedia, and what did I find about this word introduced by a Scottish Secretary into a Scottish Bill: I do not even feel sure of that, although my right hon. Friend has so kindly informed me of it now, because of what he said with regard to the following Sub-section. If Sub-section (2) operates to limit the scope of the Act to houses between £60 and £90 I do not understand where the special protection comes In which he said was provided by the Act for houses defined under Clause 3. In Scotland there are very great doubts as to the protection granted under the existing Acts, the two Acts of 1919 taken in conjunction with the Act of 1915. There has been a correspondence raging for some time in certain Scottish newspapers, and grave doubts have been expressed as to the security of tenants of houses under £60. I regret that my right hon. Friend has chosen to use this phrase when I think it would be perfectly easy to set all these doubts at rest by adopting a somewhat different phraseology in Sub-section (2).
I wish to put this further point to my right hon. Friend. We have all had many communications as to the injustice of a man being put out of his business premises, and it seems somewhat anomalous that you should preserve the occupation and maintenance of his life while you allow to be taken from him the mode of livelihood which alone will enable him to continue to maintain himself and his family. It seems to me that to keep a man in his house and at the same time deprive him of the means of paying rent is not legislation of a kind which commends itself to the broad sense of the Scottish people. There is one other point. Business premises are entirely out with the scope of the protection given by this Bill and the preceding Acts. In villages where one sees, perhaps in a miner's house, a front window filled with lemonade bottles, and a room or part of a room devoted to carrying on perhaps a small grocery business, there is a sense of insecurity. I hope my right hon. Friend will take that into consideration. I regret that we should have to discuss this very important measure at this time of the morning, but we should not be doing our duty as Scottish Members if we did not mention some of these points, and if we did not enter our protest against the growing tendency of Scotland to be dragged at the heel of English legislation. If and when we get a Scottish Parliament in Edinburgh, we shall never look to England for prece- dents, and I trust my right hon. Friend will, on this occasion, break loose from the trammels of the past.
I homologate the opinions expressed by the hon. Member for Kilmarnock in expressing regret that shops and business premises are not included in the Bill. The difficulties connected with the War have affected shops and business premises quite as much as they have affected dwelling houses. I know many cases in which tenants who have built up businesses for years will be ejected on 28th May unless there is protection given under this Bill. I admit the question is surrounded with difficulties, but that should not deter the right hon. Gentleman from including business premises.
May I appeal to my Scottish colleagues to allow this Bill to go through. We are near the 28th of May, and unless the Bill be passed there will be profound dissatisfaction in Scotland. I quite agree with the Members who have spoken about the delay that has taken place in bringing the Bill forward, but we must make the best of a bad bargain. I am aware of the hardships of business men who have been warned out of their premises, but I assume that the Secretary for Scotland cannot touch that in a suspensory Bill. In any case let us save this Bill, and get some protection for the householders of Scotland.
I protest against this Scottish Bill being brought on at twenty minutes to six o'clock in the morning. While sympathising with people who are being turned out of business premises, I would like to put another point to the Secretary for Scotland. I have had a great many letters from people who have bought houses intending to live in them, but who have to live elsewhere because they cannot get possession of the houses which they own. They have to let that at one rent, and pay a higher rent to get a dwelling-place for themselves. I did not know how much hardship was inflicted until I had many of these cases brought, to my notice. I should like to know how far these cases are affected by this Bill, or whether the Bill that is to be introduced will help them?
I do appeal to the House to give a Second Reading to this Bill without further discussion. We can put in Amendments on the Committee stage. It is only a Suspensory Bill, and at is well known that we cannot deal on Second Reading with these points which the hon. Member for Leith (Captain W. Benn) has raised.
May I say to any other Member of the House who is in the least excited about our not giving the Government the Bill, that the Government will get this Bill, and every stage of the Bill, this morning. We have got from twenty minutes to six to twelve o'clock, if necessary, to achieve that. My hon. Friend who spoke last has evidently forgotten that we are going to take now the Committee stage, the Report stage, and the Third Reading. This is a Government measure, and the Government, drawing so much of its support from Scotland, will obviously keep a house for an important measure which they themselves have put down. We are not concerned about that. We Scottish members not associated with the Government are here, and we intended to remain here, the whole of the morning until this Bill is given. This is another example of the way in which the Government approached these questions.
Do not attack the Government. Get on with the Bill.
The hon. Gentleman may allow me to make my speech in my own way. The Government knew the date of the May term in Scotland, and there has been ample time to bring this Bill before the House and have its Second Reading at such a time that we could have put our Amendments down, and if anybody is to blame for what has happened it is the Government. I am going to move an Amendment or two as soon as we get the Second Reading, but we cannot put in our Amendments until the Bill has been read a Second time, and then they will be only manuscript Amendments, and therefore it is only courteous that we should indicate the points on which there should be some Amendments. On Clause 1, I am going to draw attention to the provisions by which it is restricted to the present session of Parliament. I do not know why we should not protect these people from ejection until the actual Bill is passed. It may easily happen that it will not be passed during the existing session of Parliament. Events might occur over which this House had no control, and these people would then be in a similar position to what they are in to-day. Then, it is very difficult to agree to the provisions of this Bill unless my right hon. Friend is going to include office and business premises. The Member for Kilmarnock referred to the Scottish villages, but there is a much more serious point in regard to Scottish houses. In Edinburgh there are many houses in which the business premises are on the street floor and in which the man who owns the shop and works the shop lives above his business premises; and where that is not the case you have the people who are serving in the shop living behind the business premises. What is going to happen in those cases? Is that dwelling which consists of a shop and a dwelling-house under one and the same roof, to be considered a house or a house and a business premises?
With the permission of the House, may I say a few words with regard to what the hon. Member for Govan (Mr. Neil Maclean) said regarding the position as to the inclusion of shops in this Bill, or any other measure introduced at a later stage? I may assure him that I fully recognise the importance of this question, and quite understand that in some cases the hardship of being turned out of a shop which is a man's sole means of livelihood may involve not only his comfort but his living as well. But when one turns to the remedy the question is extraordinarily difficult. It is perfectly plain to begin with that the house referred to could not be brought within the ambit of this Bill. The title of the Bill is undoubtedly in such terms as would exclude the possibility of including shops.
Alter the title.
I do not propose to do so for a reason which I shall tell my hon. Friend. The Committee on which this Bill is founded reported expressly against the inclusion of shops. They devoted a considerable amount of time and trouble to that topic, and if my hon. Friend will read the report he will find that recommendation. At the same time, the whole subject of shops, and whether they can be dealt with either in a Bill of this kind or any other Bill, is engaging the anxious and careful consideration of the Government, but a decision on that matter has not yet been reached, and therefore I am not in a position to alter the title of this Bill and to introduce business premises into this measure. The question whether they can be protected in any way, despite the recommendation of the Salisbury Committee, is being carefully considered. With reference to what the hon. Member for Kilmarnock has been saying, I will not be drawn at this hour into discussion on Scottish Home Rule, a subject on which I expressed my views quite recently. Complaint has been made that this Bill was not introduced at an earlier date. I had hoped that it would be possible to introduce the Bill affecting both England and Scotland before the House adjourned, and it was when it was clear that that was not possible that I saw it was necessary to have a Suspensory Bill, and thus to stereotype the situation in Scotland, if a grave injustice was to be prevented. Obviously, it would have been more convenient to deal with the situation as a whole.
With regard to my hon. and learned Friend's criticisms of the terms in which this Bill is expressed, I really think there is little justification for that criticism. It must be remembered that this Bill is an echo of the terminology of the various Acts—and there are three—affecting Great Britain as a whole. It would be extremely difficult, if not impossible, to offer an original production. With regard to the question of the miner, I can probably deal with that more definitely when I see the precise Amendment which it is proposed to table. I think that criticism was well-founded with regard to Sub-clause 3. I think it is important that it should be made more clear to what houses the Clause applies. With regard to what was said about the present Parliament, it must be remembered that a Bill applying to England must be rendered before 24th June and therefore I do not think the Bill will offer any difficulty there, or that it will be necessary, having regard to the fact of the intention of the Government to alter it.
Question put, and agreed to.
Bill read a Second time.
Resolved, "That this House will immediately resolve itself into the Committee on the Bill."—[ Mr. Munro. ]
Bill accordingly considered in Committee.
[Mr. WHITLEY in the Chair.]
CLAUSE 1.—(Orders for possession.)
(1) Pending the passing during the present session of Parliament, of an Act to amend the law imposing restrictions on increases of rent and mortgage interest, no order or judgment for the recovery of possession of a dwelling-house to which this Act applies, or for the ejection of a tennant therefrom, shall be made or given so long as the tenant continues to pay rent at the agreed rate and performs the other conditions of the tenancy, except on one or other of the grounds specified in Sub-section (1) of section one of the Increase of Rent, &c. (Amendment) Act, 1919.
(2) This Act applies to houses or parts of houses in Scotland let as separate dwellings where such letting does not include any land other than the site of the dwelling-house and a garden or other premises within the curtilage of the dwelling-house, or any obligation to provide board, attendance, or us of furniture, and where for the year ending Whitsunday nineteen hundred and fifteen either the rent or the yearly value, according to the valuation roll, exceeded sixty pounds but did not exceed ninety pounds.
(3) Where houses or parts or houses have been taken possession of by a Government Department during the War under the Defence of the Realm Regulations for the purpose of housing workmen, this Act shall apply to such houses or parts as if the workmen were tenants thereof.
I beg to move, in Subsection (1), to leave out the words "during the present session of Parliament."
My right hon. Friend, in his reply on the Second Reading debate, said that he could assure us that before June 24 there would be an Act applying both to England and Scotland. If that is so, this suspensory Bill would then be wiped out of existence, but anything unforeseen may overtake the Government or the situation, and I suggest that these words be left out.
I am quite prepared to accept the Amendment.
Amendment agreed to.
There are other Amendments dealing with the question of shops and business premises; these are all outside the scope of the Bill. There is one which may be taken to come within the scope of the Bill. It is a minor point presented by the hon. Member for Kilmarnock. It is purely a definition of when a dwelling-house is a dwelling-house.
I beg to move, at the end of Sub-section (1), to add the words
"and a dwelling house shall not cease to be a dwelling house within the meaning of this Act by reason only of the fact that a small business subsidiary to the occupation of the house as a dwelling house is conducted therein and by the occupant."
I hope my right hon. Friend will see his way to clear up the matter and to accept the Amendment.
I sincerely hope that the right hon. Gentleman will see his way to accept this Amendment, which is a very important one for the small districts. There are no dwelling houses quoted by the hon. Member for Kilmarnock which will not suffer very much unless this Amendment is accepted.
The hon. Member for Kilmarnock uses the words "subsidiary to the occupation of the persons in the dwelling house." Might I remind him that there are a great number of businesses in Scotland, particularly in small towns, where it should not be a subsidiary business, but the entire business would actually be carried on in the dwelling house? We ought to take those cases into consideration.
My own view is that anything further than this would be going beyond the title in a way which we cannot attempt. I had some difficulty in reconciling my conscience in this matter. My one trouble with this was that I understand the Clause only applies to houses between £60 and £90 per year and where there can be a small business carried on in a big house.
That is one of the reasons why I do not propose to accept this Amendment, although I can understand the reason for moving it. I think in the first place it is unnecessary, and in the second place, ineffective. It is unnecessary for the reason that if the house has been let as a dwelling house and still continues to be occupied as a dwelling house, the mere fact that one of the rooms is used in a certain way does not deprive the house of being a dwelling house. Since 1915 this protection has been afforded and there have been no complaints or difficulties of any sort or kind. I am perfectly certain that if there had been I should have heard of them before now. It is ineffective because this Amendment would only apply to dwelling houses between £60 and £90 a year rental and I cannot conceive of there being many houses with that rental in which one room is devoted to selling lemonade or other wares of that kind.
Would the right hon. Gentleman say whether, if a person lives over his shop, would that be a dwelling-house or a shop?
6.0 A.M.
It is entirely a question, of course, of circumstances. If the premises were let as a house, then they continued to be a house not withstanding that something may be sold from one room. If, on the other hand, these premises were a shop they could not come under the Bill, and I do not think you, Mr. Whitley, could accept any amendment to that effect as in order.
I am inclined to agree with you and that the Amendment would be inoperative, and in view of the further reasons given I beg to withdraw.
Amendment, by leave, withdrawn.
I beg to move, at the end of Sub-Section (3), to add the words "and notwithstanding that the rent or yearly value thereof did not exceed sixty pounds."
As I explained to the Committee, the object is to meet the criticism offered on the 3rd Clause of the Bill. The commandeered houses are covered, even though the rent may not exceed £60. Most are under that figure, but to make it perfectly clear I move this Amendment.
Amendment agreed to.
Clause, as amended, ordered to stand part of the Bill.
CLAUSE 2.—(Short title, application and duration.)
2.—(1) This Act shall apply to Scotland only, and may be cited as the Ejection (Suspensory Provisions) (Scotland) Act, 1920.
(2) This Act shall not remain in operation beyond the expiration of the present session of Parliament.
I beg to move to leave out Sub-section (2).
Having accepted the Amendment from the Member for Edinburgh I am advised that it would be advisable to leave out this Sub-section.
Amendment agreed to.
Clause, as amended, ordered to stand part of the Bill.
Bill reported, with Amendments.
As amended, considered.
Motion made and Question proposed, "That the Bill be now read the Third time."
The right hon. Gentleman has treated us with great courtesy throughout, but I think he did forget to answer the point raised. I have had several deputations of people who laid out their savings and bought houses which they cannot occupy. They are compelled to occupy lodgings and pay higher rent than what they get from their own house. Are they still prevented from occupying their own house?
With regard to this question I think the answer will be found in the Rent Restriction Act of December, 1919, because there are certain conditions and certain qualifications to the protection of property which are there set forth and one is that the premises are reasonably required by the landlord for occupation by himself.
I pay tribute to the most courteous way in which the right hon. Gentleman has treated us all. No one has opposed this Bill. No one has divided on this Bill, and the result of the Second Reading discussion, which was not long, has been that the Government has moved an Amendment because of something in one Section and it has now embodied it in the Act.
Question put, and agreed to.
Bill accordingly read the Third Time, and passed.
The remaining Orders were read and postponed.
It being after Half-past Eleven of the Clock upon Thursday evening, Mr. DEPUTY-SPEAKER adjourned the House without Question put, pursuant to the Standing Order.
Adjourned at Eight Minutes after Six o'clock a.m.