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Commons Chamber

Volume 142: debated on Wednesday 8 June 1921

House of Commons

Wednesday, June 8, 1921

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

Private Business

Falmouth Docks Bill [ Lords ],

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

Oral Answers to Questions

Questions

Massacre of Moslems, Asia Minor

asked the Under-Secretary of State for Foreign Affairs if his attention has been called to the massacres of Moslems and the destruction of Moslem villages in the district of Yalova, on the Sea of Marmora, by the Greeks since the Greek captain, Dimitrius Pappagrigoriou, took command of the district some seven weeks ago; that an effort to evacuate the survivors by the representatives of the British, French, and Italian High Commissioners at Constantinople on 24th May was obstructed and partially prevented by this Greek officer; that a general extermination of the Moslems in the Karamursal Peninsula is taking place with the apparent connivance of the Greek General Leonardopoulos, commanding the troops in this area; and what steps His Majesty's Government is taking or has taken to put a stop to these massacres and persecutions?

The attention of His Majesty's Government has been called to reports of excesses committed by Greeks in the Yalova district, of which Moslems were the victims. An Allied Commission of Inquiry proceeded to that district in May and its report substantiates the fact that grave excesses occurred. Repre- sentations based on the report have been made to the Hellenic Government.

Can the Government do anything further to make representations and put on pressure to stop these massacres?

Do the Government appreciate how deeply Mohammedan feeling is stirred by the outrages perpetuated by the Greeks in Asia Minor?

I am aware that excesses against Moslems always excite Moslem opinion in India, but I would point out the fact that an Allied Commission was sent to investigate this matter shows that his Majesty's Government attach importance to it.

Mexico

asked the Under-Secretary of State for Foreign Affairs whether the question of the recognition of the Mexican Government has progressed since he last gave information to the House; whether that Government has yet begun to fulfil its President's promises to honour its obligations to British holders of the Republic of Mexico Loans, and other pre-1910 claims of various natures against the Mexican Government by British investors and traders who have placed British capital in undertakings in Mexico, such as railways; whether he will, should the Mexican Government not yet have fulfilled its promises and obligations, take steps, either by sending a special commissioner, or otherwise, to ascertain from the Mexican Government what they are doing towards honouring their obligations; and whether he will inform the Mexican Government that until that Government proves its good faith there must be a postponement of further consideration of the question of recognition by Great Britain?

There have been no recent developments in this matter, and, so far as I am aware, the Mexican Government have not yet made any payments to meet the obligations referred to. The Mexican Government are fully aware of the attitude of His Majesty's Government in this question, and I do not think that any useful purpose would be served by sending a special commissioner to Mexico at present.

Does the hon. Gentleman think it would be wise for our traders to do any business with Mexico while the existing condition of things continues?

Has the hon. Gentleman seen the report in the Press that the Government of the United States has proposed a treaty of amity and commerce with Mexico, and can he give the House any information?

I have seen the report referred to, but I cannot, at the moment, add anything to what I have said.

Eastern Siberia

asked the Under-Secretary of State for Foreign Affairs what information he has as to the position of affairs in Vladivostok and Eastern Siberia; whether a royalist or counter-revolutionary Government has been set up under Japanese protection; whether certain of the survivors of General Baron Wrangel's army are being transported from Turkey to Vladivostok; and whether His Majesty's Government is using its good offices to prevent further attacks on the Government of Russia?

Vladivostok and Nikolsk have been taken by troops who formerly served under the late General Kappel, and are now commanded by General Verzhbitzky. As a result of this movement the Chita Government have sent troops to form a front on the Ussuri Railway at Imampo. A Government has been established at Vladivostok under M. Merkuloff, representing all parties except the Communists and the followers of General Semenoff. This Government has dissolved the National Assembly of the Maritime Province, and new elections are to take place at the end of this month. The answers to the second and third parts of the question are in the negative. With regard to the last part, His Majesty's Government do not propose to interfere in any way with the internal affairs of the Far Eastern Republic or of Russia.

Royal Navy

H.M.S. "Hood" Sister Ships

asked the Parliamentary Secretary to the Admiralty how many sister ships of H.M.S. "Hood" had been contracted for at the time of the Armistice with Germany; whether any work had been done on them; and what sums were paid to the contractors as compensation for the cancelling of the contracts?

At the time of the Armistice with Germany three sister ships of H.M.S. "Hood" had been contracted for, and work on all three had actually commenced. No sums have yet been paid to the contractors as compensation for the cancellation of the contracts, but claims on this account are being investigated.

Can the hon. Gentleman inform me what is the total amount being claimed?

As far as construction has gone, can the hon. Gentleman say to what use the hulls will be put? Will they be broken up?

South American Squadron (Withdrawal)

asked the Parliamentary Secretary to the Admiralty whether his attention has been drawn to a resolution recently passed by the Council of the British Chamber of Commerce in Brazil (Rio de Janeiro)and sent to his Excellency the British Ambassador in Brazil, the right hon. Sir John Tilley, K.C.M.G., C.B., and also the resolution passed by the Council of the British Chamber of Commerce in Uruguay, and sent to His Majesty's Chargé d'Affaires in Montevideo, in which the Councils of these two bodies expressed their utmost concern at the decision of His Majesty's Government to withdraw the British Squadron from South American waters; and whether this decision will be reconsidered by His Majesty's Government in view of the fact that such a policy is considered by those well qualified to know to be detrimental to the prestige of the British Empire, and, therefore, very prejudicial to British trade interests on the continent of South America?

asked the Parliamentary Secretary to the Admiralty how many ships he proposes to maintain in South American waters; and what type of vessels they will be?

The answer to the first part of the question by the hon. Member for Plymouth (Sir A. S. Benn) is in the affirmative. As announced in the First Lord's statement, explanatory of the Navy Estimates, the Government have decided for reasons of economy on the temporary withdrawal of the South American Squadron. This decision does not exclude the possibility of visits of His Majesty's ships from other stations to South American waters, and the desirability of arranging for such visits from time to time will be kept in view.

Do the Admiralty realise the importance which is attached by British subjects resident in the South American Republics to the visit either of a squadron or a ship at all times, and whether this withdrawal will not leave the impression that the British Government take little, if any, interest in their subject residents out there?

Will the Admiralty seriously consider maintaining at least one good ship in those waters, on the ground that British residents in those countries know that trade follows the flag, and it will be very serious if a minimum of one ship is not maintained?

Was the withdrawal of this squadron considered by the Committee of Imperial Defence before orders were given for the withdrawal of the squadron?

I should like to have notice of the last question. I sympathise with the desire that our flag should be flown in all waters, and not least in regions where there is a large British community whose prestige counts for a great deal. On the other hand, considerations of economy are of paramount importance.

Is the expense not about the same, whether the ship is kept in commission out there or in home waters?

Certain squadrons are necessary in order to maintain Imperial defence. Temporarily, at any rate, the South American Squadron was not considered as essential as certain others.

Naval History of the War

asked the Parliamentary Secretary to the Admiralty whether he can give a list of the main headings of documents to which Sir Julian Corbett has access for the purpose of compiling the Naval History of the War; whether the gentleman referred to is bound by any oath of secrecy to keep such documents confidential; whether all documents relating to the naval war are filed in the Admiralty archives; whether any documents, reports, or despatches have been or are to be destroyed; and whether any important reports, despatches, or documents have been lost?

I have already stated that Sir Julian Corbett has access to all Admiralty papers. The main headings of the documents in question are given by Sir Julian Corbett in the preface to the first volume of the Naval History of the War. All documents are or will be recorded in the Admiralty archives. None has been or is to be destroyed. No important reports, despatches or documents are known to be missing. It was not considered necessary to administer an oath to Sir Julian Corbett.

Lower Deck (Promotion)

asked the Parliamentary Secretary to the Admiralty when it is anticipated a reply will be given to Item 65 of the General Requests contained in Admiralty Monthly Order 2,359, of 1920, as the lower deck consider the present method of assessing their ability as most unsatisfactory; and whether he is aware that there are cases where men have received the award of exceptional for ability continuously since its inception and yet have not received a single day's accelerated promotion?

This question is still under consideration, and I regret I cannot at the present moment promise a reply on any specific date. The question will, however, be settled without any avoidable delay.

His MAJESTY'S SHIP "ASSISTANCE" (FLEET LAUNDRY)

asked the Parliamentary Secretary to the Admiralty when the Fleet laundry in His Majesty's Ship "Assistance," which according to a recent official notice is equipped with modern machinery and managed by a committee of ships' officers, was installed in that vessel; and under what Vote in the Naval Estimates was the cost of installing the laundry approved?

The installation of the laundry was completed in the autumn of 1919. The cost of installation formed a charge to Vote 8.

Directors-General

asked the Parliamentary Secretary to the Admiralty how many Directors-General of various branches there are at the Admiralty; when they served afloat last; and whether an up-to-date and personal knowledge of the personnel whom they direct is considered essential for the efficient performance of their duties and the contentment and welfare of the ratings of their respective branches?

There are two officers at the Admiralty holding the rank of Director-General; the Medical Director-General and the Paymaster Director-General, whose last service afloat was in April, 1919, and in October, 1914, respectively. The reply to the latter part of the question is in the affirmative.

Yard Craft Crews (War Service)

asked the Parliamentary Secretary to the Admiralty whether he is aware that the war services of the yard craft tugsmen have not yet been recognised; and whether, in view of the number of lives and the amount of property saved by their assistance, he can see his way to give this branch of the service some recognition?

The Board are fully appreciative of the loyal and often arduous services rendered by the crews of the dockyard craft during the War; but where all sections of dock- yard employés have carried out their duties, each in their own province, in a satisfactory manner, it would be invidious to single out any individual section for exceptional recognition. Members of yard craft crews will in all cases, provided they have served a cumulative period of twenty-eight days at sea during the War, be entitled to the award of the British War Medal; and due and regulated recognition-has been given for special services. The question of granting, in addition to the regulated payments, special pecuniary awards to yard craft men, in respect of their services during the War, has also been under consideration, but the Board have decided that the circumstances do not warrant this being done.

Is the hon. Gentleman aware that this matter has been under consideration for a long time, possibly 18 months?

Unemployment

Benefit

asked the Minister of Labour if he is aware that men at Lambley Colliery, Northumberland, near Carlisle, got 14 days' notice on 26th February, 1921, and were paid unemployment benefit until 1st April, and that they then applied for a continuation of unemployment pay and were refused; is he aware that the workmen applied to the court of referees sitting at Carlisle and were allowed the further payment: has he been informed that the umpire for the court of referees has refused to pay the men any further allowance; and will he inquire further into the case?

I have made inquiries with regard to the claims of the men referred to by my hon. Friend, and am informed that there were no men at the Lambley Colliery, Northumberland, who were unemployed before the 31st March. I am, however, sending my hon. Friend a copy of the decision given by the umpire respecting workmen employed at the neighbouring White Cuts Colliery, which appears to be the case he has in mind. The umpire reversed the finding of the court of referees for reasons set out in his decision. Under the provisions of the Act the decision of the umpire is final and conclusive, and I have no power to reopen the matter.

Is the right hon. Gentleman under the impression that none of these men were unemployed before the 31st March?

I said that there were no men unemployed at the Lambley Colliery before the 31st of March. There is another colliery which is probably the case which my hon. Friend has in mind, but perhaps he will consult me on this matter and I will give him all the information I can.

Domestic Servants (Outfits)

asked the Minister of Labour whether any sum of money has been ear-marked to be given to women entering domestic service, and, if so, what is the total amount involved; whether each applicant is to have an outfit up to a maximum cost of £10, with the sole condition that the applicant has obtained a situation, but with no guarantee that the applicant will remain in domestic service for any definite time; whether the sum to meet this expenditure is met from the Vote for the Ministry of Labour, and, if not, from what fund it is derived; whether, seeing that the only outfit needful for a worker entering domestic service consists of the necessary working clothes, such outfit could be provided at less cost that the maximum of £10 per head; in what proportion of cases the maximum allowance is granted, and whether the fixing of the maximum at so high a figure as £10 provides an opening for fraud on the part of the applicant and extravagance on the part of the committee through which these grants are made?

I am informed that the Central Committee on Women's Employment and Training, in order to enable suitable unemployed women to take up resident domestic service, have arranged to supply outfits to applicants approved by the Local Employment Committee, who have accepted a definite offer of employment. Half the outfit is supplied at the address of the mistress where the applicant has taken up work, and the other half when she has been in residence a week. The outfit becomes her property after three months' residential service. The nature of the outfit is decided in each case by the Local Committee. The maximum expenditure is £10; the average expenditure, so far, has been about £6. No money is paid to the applicant herself. The cost does not fall in any way upon Ministry of Labour funds. The expenditure on outfits comes out of the General Fund of the Central Committee, which, as my hon. Friend probably knows, derived its resources from a grant by the National Relief Fund.

Unemployed, Borough of Southwark

asked the Minister of Labour the total number of unemployed men and women at present registered in the Borough of Southwark; and what the approximate cost of the weekly payments made to them amounts to?

I regret that I am unable to give figures covering the exact area of the Borough of Southwark. The number of persons, however, who were registered as unemployed on 27th May last in the area of the Borough Employment Exchange, which most nearly coincides with the area of Southwark, was 16,007, of whom 10,823 were males and 5,184 were females. In addition to these there were 2,172 persons claiming unemployment benefit in respect of systematic short-time working. As part of the Unemployment Benefit paid to these persons was paid through associations of which they are members, I have no record which will show the exact amount of benefit. It was probably in the neighbourhood of £13,000 for the week ending 25th May.

Relief Works (Grants)

asked the Minister of Labour how much of the money allotted to Lord St. David's Committee has been spent up till now in grants for unemployment work; if he can state, approximately, on what kinds of work it has been spent, and the totals on each head; and if he can state what number has been employed on the various kinds of works?

As the answer is a long one, and contains a number of detailed figures, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.

The following is the answer:

The total amount of the grants allocated by the Unemployment Grants Committee from the inception of their work on 20th December, 1920, up to and including the 6th June, 1921, is £1,693,705.

The classes of works in respect of which grants have been allocated are as follows:

£

Per cent.

Road construction or repair

762,295

44

Work on parks, recreation grounds, cemeteries

313,935

19

Gas, water, and sewage works

247,325

15

Painting work

102,490

6

Work on tramways

97,650

6

Electric works

51,830

3

Land reclamation

41,070

2

Work on docks, harbours, and quays

30,130

2

Miscellaneous works

46,980

3

£1,693,705

100

The number of additional unemployed men expected to be taken on for the purposes of these works is 51,783.

The sum actually paid out by the Committee to date is approximately £170,000, but inasmuch as payments are only made on verification and in arrear the progress made must be substantially greater than is indicated by this figure.

Insurance Fund

asked the Minister of Labour if he can state the present position of the Unemployment Insurance Fund; whether it is proposed to amend the Act in the direction of reducing the benefits and increasing the contributions; and whether he can state fully the Government's proposals on this matter.

I propose to make a statement on these points in connection with the Unemployment Insurance Bill, which I hope to introduce this afternoon.

Ex-Service Men

Building Trade

asked the Minister of Labour how many ex-service men have now applied under the Government scheme for employment in the building trades; and how many are now employed?

17,123 men have applied for employment. About 200 are either at work under the scheme or are recorded as having, been allocated to employers for employment under the scheme. My Noble Friend will, of course, recognise that the industrial situation is hampering very seriously the building employers in their efforts to make good the undertaking which they have in hand; and that satisfactory progress can only be secured when an improvement in that situation enables building activities to be fully resumed.

Can the right hon. gentleman say what is the attitude of Trade Unionists towards this question, generally speaking? Has he heard of the case which has just occurred at—

Political Agents

29 and 30.

asked the Minister of Labour (1) whether the trainees for political agents applied for this particular form of training or whether the Unionist organisations applied for trainees;

(2) what is the amount paid as a training grant to the four men employed by the Central and National Unionist associations; where they were employed prior to their War services; and is he aware that other political organisations pay their own officials whilst in course of training without resort to a Government subsidy?

A certain number of ex-service men applied for this particular form of training. Political organisations were accordingly approached, and the Unionist organisation was the only one which agreed to offer the required training. Two of the gentlemen in question receive £144 a year, one having been formerly a medical student, and the other an employé in the Land Valuations Department. The latter of these two having drawn his allowance for just over three months, was given a definite post on trial for three months, the allowance being suspended meanwhile. If he makes good it will, of course, not be continued. The third, a married man, is in receipt of a grant at the rate of £200 a year for a period of six months. He was formerly a lecturer with the National Unionist Association. The fourth, a married man with four children, receives a grant at the rate of £272 a year for 12 months to be reviewed in 6 months' time. He was formerly in business on his own account.

Are these men being actually trained, or are they only employed as clerks by local Unionist associations?

It is part of the scheme that they have to be trained so as to earn a decent living hereafter.

Machinery, Cowdenbeath

asked the Secretary for Scotland if his attention has been called to the correspondence which has passed between the Fife education authority and the Ministry of Munitions Disposal Board regarding the sale of machinery installed by the Ministry of Munitions at the Fife training school, Cowdenbeath; whether the machinery is now being used for the training of disabled ex-service men; whether the education authority has expressed a desire to acquire the machinery for the regular training of students in mechanical engineering, and has made an offer, based on an independent valuation, to hire or purchase the plant; whether the offer has been refused, and if this refusal took account of the fact that the use of the machinery in question, with other machinery supplied by the Fife education authority, effected considerable saving to the Government during the War; that the Fife mining school staff gave their services free of any charge in the training of munition workers and ex-service men during the War, and that the authority practically provided the building free of any charge for the said training; and whether he will use his influence to secure the acceptance or reconsideration of the local authority's offer?

A copy of correspondence which has passed between the Fife Education Authority and the Ministry of Munitions Disposal and Liquidation Commission has just been submitted to the Scottish Education Department by the Authority. From this it appears that the Authority have made an offer of £500 for machinery which the Disposal Commission value at £1,250. The Department are in communication with the Disposal Commission on the subject, and I understand that the Commission are willing to give the matter further consideration.

Trade Boards

asked the Minister of Labour whether, in view of the answer given by him on the 16th March to the effect that it was proposed to set up a Trade Board for the fruit, flower, and vegetable distributive trade, he can now state on what date the arrangements for setting up this Board will be completed?

I regret that I am not yet in a position to state definitely the date on which the Boards will be established, as I am still carrying on negotiations with a view to securing the co-operation of all the interests concerned in the necessary arrangements. At the same time, inquiries are proceeding for the purpose of obtaining candidates to represent the trade in the smaller towns and rural districts.

asked the Minister of Labour whether, in view of the time that has elapsed since the proposal to set up a Trade Board for the boot and floor polish trade was put forward, he can now state on what date the arrangements for setting up this Board will be completed?

Did not the right hon. Gentleman assure me recently that it was only a question of a short time before the Board would be set up?

I am not aware that I said a "short time." Inquiries were needed as the situation developed, and I cannot at the moment fix a date.

asked the Minister of Labour whether his attention has been drawn to the disregarding of the provisions of the Trade Board Act in the fixing of the rates paid to the workers in the clothing trade, and particularly to the women outworkers in the East End of London; and whether, in view of the injustice to the workers and the danger to public health entailed by making clothing under sweated conditions, he will cause inquiry to be made into the circumstances at present prevailing in this trade?

I have received a number of complaints that certain employers in the clothing trades of East London are not complying with the provisions of the Trade Boards Acts. Inquiries have been, or will shortly be, made in all these cases. If, however, my Noble Friend has further cases to bring to my notice I will arrange for an investigation to take place with the least possible delay.

Is it not the duty of the right hon. Gentleman to see that the findings of Trade Boards are observed?

asked the Minister of Labour whether new rates of wages have been submitted to him for confirmation by the Grocery and Provision Trade Board; whether when those rates were agreed upon by the Board the cost of living was 175 per cent. above that of 1914 but has now fallen to 128 per cent.; and whether, seeing that if the proposed rates were confirmed it would mean an increase in the cost of food to the public, he will, in these circumstances, refer back the rates to the Trade Board for further consideration?

17 and 19.

asked the Minister of Labour (1) if he will refer the rates of wages back to the Grocery and Provision Trade Board, in view of the fact that when these rates were first agreed by the Board the cost of living was 175 per cent. above 1914, whereas at this time, when the Minister is asked to confirm them, the whole cost of living has fallen to 128 per cent. above 1914;

(2) if his attention has been called to the distress in Cornwall through the closing down of the tin mines owing to the heavy cost of coal and low price of tin, and that increasing unemployment and greater distress are occasioned through the introduction of wages increases at this inopportune time by the Grocery and Provision Trade Board, which the employés of the interests concerned neither desire nor expect; and will he give instructions to defer action until at least trade prospects improve?

asked the Minister of Labour whether the Grocery and Provision Trade Board have proposed to immediately increase the wages to all sections of workers in the food distribution trades; whether he is aware that if such increase be confirmed an immediate rise in the cost of food will take place to the general public; and whether the rates can be referred back to the Board for reconsideration in view of the fact that the cost of living has fallen from 175, when the rates were first agreed to 128 at the present time?

asked the Minister of Labour if he is aware that the rates submitted to him by the Grocery and Provision Trade Board, England, were carried by the votes of the appointed members against the unanimous votes of the employers' side; and, seeing that these rates were first proposed when the cost of living was 161 above pre-War level, and that although this figure has fallen to 128, the appointed members refused to consider the employers' request for a reduction to meet this situation, will he reconsider the matter?

asked the Minister of Labour what action he proposes to take in regard to a recommendation by the Grocery and Provision Trade Board for an increase in wages; and whether, seeing that when these increases were considered the cost of living was 175 per cent. above 1914, whereas it is now only 128 per cent., he will refer the proposed rates back for reconsideration?

The Grocery and Provisions Trade Board have submitted to me the minimum rates of wages for certain classes of male and female workers, and I am now giving close consideration to the question whether I should make an order bringing these rates into statutory operation. In reaching my decision I shall take into account all the relevant factors. Full statements of the views of employers in certain out-lying districts, including Cornwall, have already been made by deputations received by officers of my Department, and I am tomorrow hearing personally the representations of the employers' side of the Trade Board, and on the following day the workers' side.

Would it not be better to leave matters to employers and employed?

In giving further consideration to this question will the right hon. Gentleman bear in mind the point of view of the consumer, and see that the cost of food is not increased by anything he does?

Does the right hon. Gentleman agree that these rates will increase the cost of food to the public? When the Trade Board arrived at the minimum rate of wages did not the representatives of the employers take an entirely different view from those of the employed, and were not the members nominated by the Ministry the people who virtually decided the question?

Is it not the fact that all these advances secured by the most sweated trade before the War were granted owing to the cost of living?

That last point is dealt with in Question 23 as to the action taken by the appointed members. I am, as I have said, meeting representatives of the employers tomorrow and of the workers the next day, and I shall then consider what is the proper course to pursue.

asked the Ministed of Labour whether he will give a rough estimate of the cost to the taxpayer of a trade board; what is the number of officials who are attached to a trade board in a whole-time or part-time capacity; what remuneration is drawn by members of a board; and what is the present number of trade boards actually functioning in the United Kingdom?

The average total annual cost of a trade board, excluding the cost of services rendered by the Stationery Office, Office of Works and General Post Office, is £1,150, but the actual expenditure varies in proportion to its membership and to the frequency of meetings. The total secretarial and clerical staff, including typing and Registry staff, attached to the 61 trade boards in the United Kingdom is 65. No remuneration is payable to members of the boards other than the appointed members. Chairmen receive £5 5s. per day and appointed members £3 3s., both inclusive of subsistence allowance. The representative members receive travelling and subsistence expenses on a scale sanctioned by the Treasury.

What is the gross total of all these subsistence and travelling allowances, &c.?

If the hon. and gallant Member will put down a question I will get the information.

Employment Exchanges (Staffs)

asked the Minister of Labour if officials employed in the employment exchanges are allowed to hold additional remunerative appointments in connection with trade unions or other organisations?

The general principle governing the tenure of non-official appointments by officers of the Ministry of Labour is that no officer may accept any office or other employment in respect of which he is liable to be called from duty during official hours. So far as permanent civil servants are concerned, the question is governed by Order in Council dated the 10th January, 1910, which provides that no officer shall be allowed to accept any part in the management of any society, or any trading, commercial, industrial, or financial firm or company which would require the attendance of such officer at any time between the hours of 10 a.m. and 6 p.m. I am unable to find that any officers at present serving in the Employment Exchange Service hold appointments such as those referred to by my hon. Friend. If, however, he will furnish me with particulars of any such cases, I will have further inquiries made into the matter.

Ireland

Weekly Summary

35, 36 & 37.

asked the Chief Secretary for Ireland (1) whether the statements in the early numbers of the "Weekly Summary" that the Government maintained that unrestricted murder on the Sinn Fein side must inevitably lead to acts of revenge and reprisal on the other side had his sanction;

(2) whether the statements in an early number of the "Weekly Summary" that reprisals were bound to happen, and describing them as legitimate and defensible acts, had his sanction;

(3) whether the paragraph in an early number of the "Weekly Summary," expressing the hope that reprisals would still go on until their purpose had been accomplished, had his sanction?

My right hon. Friend is not aware of any statements in the "Weekly Summary" that could be interpreted in the manner suggested in these questions.

How is it that the right hon. Gentleman is able to state that these statements are inaccurate, when he has already told the House repeatedly that he has no copies of the "Weekly Summary"?

I did not say that the statements were inaccurate; I said that my right hon. Friend was not aware of any such statements having been made.

Then the right hon. Gentleman is not in a position to deny that these statements were made?

Executions

asked the Chief Secretary whether the execution of men captured while taking part in ambushes is intended to be a deterrent; and whether, in view of the great increase in the number of such ambushes, he has any evidence that this purpose is being attained?

The execution of men found after fair trial to be guilty of a capital offence is primarily an act of justice. To what extent it is also a deterrent to others must be a matter of opinion.

House Destruction

asked the Chief Secretary what is the total number of houses burnt down or wrecked, and what is the number in which furniture has been destroyed by official orders since 1st January last; how many of these houses were occupied solely by women; and how many were outside the martial-law area?

I regret that I am not yet in possession of all the information asked for by the hon. Member, and I shall be glad if he will repeat at a later date his question, of which I only received notice yesterday morning.

Coinage, East Africa

asked the Secretary of State for the Colonies whether he can state the amount of the new semi-nickel coinage which has been issued during the last year in the Colony of Nigeria, as it is not mentioned in the Colonial Report, No. 1,064, upon that Colony; and whether the new money is willingly accepted and approved by the native traders?

I assume that my hon. Friend refers to the new alloy coins, although they are not semi-nickel coins. The issue of these coins began in the summer of last year, and the total amount issued in Nigeria up to the present time is just over £1,000,000. It is understood that the coins are willingly accepted by native traders in Nigeria. If my hon. Friend is referring to the silver coins of 500 fineness issued last year, I should add that the issue of these coins was suspended in the autumn of 1920, the new alloy coins being issued instead.

As I have never heard about these alloy coins, may I ask what they are?

I am afraid I cannot pass an examination in the alloy coins, but if my hon. Friend will put down another question, I shall be very pleased to deal with it.

Is it not a fact that these alloy coins are merely the used-up business ends of the cartridges used during the War?

Why is it that this Colonial Report No. 1,064 is so extraordinarily poor compared with the ordinary Colonial Office Reports?

I received that inquiry privately from my hon. and gallant Friend yesterday, and I wrote to him at once saying that I would make inquiries.

asked the Secretary of State for the Colonies whether contracts entered into by East African merchants and producers in Kenya Colony in rupees can now be completed in existing 50-cent pieces having an exchange value of 6d., or two-fifths of a rupee; and whether the intrinsic value of the silver in the 50-cent coins now current in the Colony exceeds two-fifths of a rupee?

I would invite my hon. Friend's attention to the statement circulated in the OFFICIAL REPORT of the 2nd June, from which he will see that the sterling exchange value of the existing 50-cent coins in Kenya and Uganda is 1s. When sufficient supplies of the new currency are available, these coins will be called in and replaced by the new shilling. Until demonetised by Proclamation, the existing 50-cent piece is legal tender in Kenya and Uganda for amounts not exceeding five florins, or ten shillings, so that ten of these existing 50-cent pieces can be used to pay off a rupee debt of five rupees. The intrinsic value of the silver in the existing 50-cent piece is 5½d., at the present price of silver.

asked the Secretary of State for the Colonies whether the recent decision to double the face value of the smaller ten- and five-cent coins now current in Kenya, Uganda, and Tanganyika was arrived at after consultation with the local currency board in Kenya Colony and with the Government of India; and whether the alteration of the value of the East African cent is expected to have an appreciable effect on the exchange value of Eastern African currency in India or elsewhere?

The effect of the recent decision with regard to the currency in East Africa is to halve the face value of the one-, five- and ten-cent coins. It does not apply to Tanganyika, where those coins are not current. The decision was taken after consultation with the Governor of Kenya, who had consulted the local Currency Advisory Board in the matter. The Government of India was not consulted. With regard to the second part of the question, the rate of exchange between Kenya and India depends on the success of the East African Currency Board in maintaining the sterling purity of the East African shilling and on the fluctuations of the London—Bombay Exchange. There is no reason, therefore, to suppose that the alteration in the value of the smallest local coins will affect the exchange.

Am I to understand from that answer that these new subsidiary 5- and 10-cent coins are to be circulated in Kenya but not in Tanganyika territory, and, if so, what is the subsidiary coin in Tanganyika?

As my hon. Friend knows, at the present time the subsidiary coinage in Tanganyika territory is the German Heller. The problem of replacing it by an alternative subsidiary coinage has not reached a point when it is possible to make any statement.

Is there sufficient of the German currency still being used in Tanganyika territory to meet all the requirements of that territory, and is it not proposed to withdraw all the German currency as soon as possible?

I understand that at the present moment the German currency is still circulating. I am not in a position at the moment to state what action it is proposed to take.

In view of the supreme importance of this question, and of the confusion which exists on the subject, would it be possible to defer putting into operation this decision of the Government until this House has had an opportunity of considering the matter in the Debate which is shortly to take place on the Colonial Office Vote?

I was not aware, until the Noble Lord spoke, that there was confusion in the matter. There is no confusion in my mind.

Oil Resources, New Guinea

asked the Secretary of State for the Colonies whether the agreements entered into between the British and Australian Governments regarding the employment of the Anglo-Persian Oil Company for investigating the oil resources of Papua extends to ex-German New Guinea; and whether, in the case of the latter, the Australian Government, as mandatory power for the ex-German territory, have exclusive rights to the possession and development of the oil and other mineral resources of the territory?

The reply to the first part of the question is in the negative. With regard to the second part, I must refer my hon. Friend to the terms of the Mandate.

Air-Worthiness Certificates

asked the Secretary of State for Air whether the Aeronautical Inspection Department is at liberty to issue air-worthiness certificates for machines built and owned abroad if the owners of those machines desire a British certificate in addition to a certificate from their own country?

Certificates of air-worthiness are not issued by the Aeronautical Inspection Department, but that Department is responsible for ascertaining the manner in which certain of the conditions of issue are carried out by the owner or constructor, and making recommendations thereon to the Civil Aviation Department, which is responsible for the issue of the certificates. A foreign aircraft owner is not debarred by our Regulations from obtaining a British certificate of airworthiness for his aircraft. The conditions upon which such certificates are issued, however, include certain requirements in regard to supervision during construction, which could not be fulfilled in the case of aircraft constructed abroad.

Would it not be a great advantage, for this country at any rate, if we could induce the foreign aeroplane people to accept our certificate as a standard of quality, in the same way in which they take a Lloyd's certificate for shipping?

Yes, Sir; that point is fully appreciated, but the difficulty of foreign manufacturers obtaining a certificate in this country is clear, owing to the fact that the machine would have to be inspected during several stages of its construction.

Are foreign machines allowed to carry British passengers without being inspected by the British authorities?

I think that in this stage the responsibility in that case must rest with the passenger who selects the service he prefers.

Coal Industry Dispute

German Coal

asked the Prime Minister whether the 94,090 tons of coal delivered by Germany as reparation to France and Belgium, which has been imported into this country since the lockout in the mining industry, has paid the imports duty under the German Reparation (Recovery) Act?

I have been asked to reply. No, Sir; articles delivered by Germany to any Allied or Associated Power by way of reparation are exempted by an Order (No. 7) made on 28th April, 1921, in accordance with Section 5 of the German Reparation (Recovery) Act.

Coal Prices

asked the President of the Board of Trade what steps, if any, have been taken to prevent the undue exploitation of the consumers of coal by the vendors of coal throughout the country; and whether he is aware that the poorest people, who buy in quantities of 28 lbs., are being charged £4 per ton?

I would refer the hon. Member to my reply of 12th May to the hon. Member for Walthamstow. The cost of buying and distributing coal is now so heavy that a price of £4 per ton to the consumer cannot necessarily be regarded as excessive.

Is the light hon. Gentleman aware that Continental Governments, including the Spanish Government, during the last great coal strike passed emergency legislation forbidding anyone to charge more than a certain price?

National Expenditure

asked the Prime Minister whether an opportunity can be given to discuss the question of the expenditure of public money by the Government before such expenditure has been sanctioned by Parliament?

It is open to my hon. Friend to raise the question on any of the following occasions:

Any Consolidated Fund Bill.

Any Adjournment Motion, when not made on a specific question.

The discussion of the Estimate ultimately required for any of the alleged anticipations of Parliamentary authority.

The general Finance Bill discussions, and, in particular, on the Civil Contingency Fund Clause in the present Bill.

Would it not be possible to raise this on the Vote of the Minister without Portfolio, and, if so, would it not meet the convenience of the Government to put that Vote down at an early date?

Yes, Sir, I should be very glad to put that Vote down at the earliest possible moment, for other reasons. I do not like having the position of a Member of the Government challenged and the decision of the House not immediately taken. The selection of the Estimates to be discussed, however, scarcely rests with me. It is customary to follow the wishes of the House, as far as we can ascertain them.

What is preventing the Government from putting down the salary of the Minister without Portfolio?

Does the right hon. Gentleman seriously consider that this single salary should take up the Supply time of the House?

In that matter I defer to the wishes of the House. If that is the matter in Supply that the House first wishes to consider, I shall give it the first place on the Paper, but, so far, other matters have been regarded as more urgent.

How did the right hon. Gentleman find out the wishes of the House? Surely, the wishes of the House are that this Vote should be discussed at the earliest possible moment.

I find out through the usual channels which have been in force ever since my right hon. Friend and I have been in the House, and long before.

Will the right hon. Gentleman seriously consider the practice of spending money before the sanction of the House has been given, except in cases of very great emergency?

As a matter of fact, has not some of the salary of the Minister without Portfolio been paid already?

As one of the representatives of what are called the usual channels, will the right hon. Gentleman accept notice from me that we should like the first available Supply day?

I really must ask that a communication should pass in the usual way. We take the Post Office Vote on the first Supply day, in pursuance of a promise made to the House. We take the Colonial Office Vote on the second Supply day, in pursuance of a promise made to the House, and I have been urgently pressed to find an opportunity for a discussion of the agenda of the forthcoming Imperial Conference before that Conference meets. I do not think that is possible, but I was proposing to try to find a Supply day for that. If the House would prefer to have the Vote of the Minister without Portfolio, of course it shall be put down.

League of Nations

Financial Liabilities

asked the Prime Minister whether, before the next meeting of the Council of the League of Nations, he will instruct the British delegates not to incur financial liabilities on behalf of Great Britain without having obtained the previous consent of Parliament?

The expenditure of the League is decided by the Assembly and not by the Council. In cases of exceptional urgency the Council may, however, decide that certain measures which may involve expenditure should be taken at once. In such cases the approval of the Assembly would eventually have to be obtained. Before agreeing to any such exceptional expenditure the British memmer in the Council would no doubt obtain the sanction of His Majesty's Government.

Will the right hon. Gentleman explain how it was that £50,000 liabilities were incurred by the British representative at the League of Nations before Parliamentary sanction was obtained?

It was incurred by my right hon. Friend after consulting His Majesty's Government, who, in view of the international and our own national interest in stamping out disease, agreed to submit to Parliament a Vote for that amount if a contribution to a satisfactory amount could be obtained from other parties.

Is the right hon. Gentleman aware that that was done concurrently with other nations having pledged themselves to us?

An undertaking was given on behalf of His Majesty's Government that they would propose to Parliament to vote this sum if other nations would also contribute to this great international object.

Why have obligations amounting to £77,000 been incurred for this year, as compared with obligations only £40,000 last year? Is the League of Nations twice as useful as it was last year?

Is it not a fact that £50,000 to stop the spread of disease in Poland was voted unanimously by this House without the protest of a single Member of the Anti-Waste party?

On a point of Order. If an hon. Member asks a question which makes a misstatement is not that a proper occasion to allow another hon. Member to ask a subsidiary question?

What the hon. Gentleman calls a misstatement may be a difference of view.

Can it be reckoned a misstatement when a reduction of the Vote is put down on the Paper? I gave notice of a reduction of the Vote, and the hon. Member said no protest was made from this side of the House.

Attacks on Hospital Ships

asked the Lord Privy Seal whether Captain-Lieutenant Neumann, who was charged at Leipzig with the crime of torpedoing the hospital ship "Dover Castle," was acquitted partly on the ground that such action is justified in the case of a ship used for the conveyance of soldiers wounded in a land battle; and whether, in view of the gravity of the position which this decision creates by legalising such an act of inhumanity, the Government proposes to take steps for the question to be considered by the League of Nations, with a view to an international agreement being come to on the subject?

This question was to be answered by the Attorney General, who, I believe, is engaged in Court.

May I put the question on Thursday to the Attorney-General, and will he be here to give me an answer then?

My right hon. Friend at the moment is engaged in an important criminal trial. That is what has prevented him being here to-day. This is pre-eminently a question which should be answered by him, and I should be obliged if the hon. and gallant Gentleman would put it down for some day when the Attorney-General can be present to answer it.

I will put it down for tomorrow, and if the Attorney-General be not here, I will postpone it to a date when he can first come here.

Members of Parliament (Expenses)

asked the Lord Privy Seal whether the Inland Revenue have yet determined what average of expenses is to be allowed to Members of the House of Commons in calculating their taxable income?

My hon. Friend's question is apparently based upon a misapprehension. It is not for the Inland Revenue to determine any average of expenses for Members, nor have they ever done so. A flat rate deduction of £100 was allowed by the Treasury many years ago under the provisions of the Finance Act, 1913, and this allowance is unaltered; but it is open to any Member whose expenses exceed the sum of £100 to claim a further deduction, so that if the facts warrant it he may be allowed the full amount of the expenses wholly, exclusively, and necessarily incurred in the performances of his duties as Member, subject, of course, to a maximum of £400, the amount of his salary. A form of expenses claim is being prepared, and will shortly be issued to Members.

As to the character of the expenses which would be admissible deductions I can add nothing to the statement I made in the Debate the other day.

Because the salary is £400, and you cannot deduct from £400 more than £400.

I quite admit that, but I desire to ask whether the deduction may not be from the total income, and not merely from a Member's salary.

This is a deduction for expenses incurred in earning a particular salary. We cannot deduct from that salary more than the amount of the salary.

80 and 81.

asked the Chancellor of the Exchequer (1) whether an unmounted commissioned officer who, owing to the lack of accommodation, is compelled to live with his wife and family some distance from where his unit is stationed is entitled to deduct from his assessment for Income Tax the cost of keeping a motor car or other conveyance to enable him to perform his duties.

(2) whether the recent decision that a Member of Parliament holds an office of profit, and is entitled to deduct from his assessment for Income Tax all expenses necessary to perform his duties, including the cost of travel to and from his place of residence, equally entitles a clerk in a banking house in the City of London and resident in Finchley to deduct from his assessment the cost of his daily travel and all other expenses necessary to perform his duties?

The travelling expenses of a Member of Parliament which are allowable as a deduction in the assessment of his salary for Income Tax pur- poses are those wholly, exclusively and necessarily incurred in the performance of the duties of his office, i.e., the expenses of travelling between Westminster and his constituency, the two places at which his duties as a Member are performed. Similarly, if a bank clerk were required to perform duties at two branches of his bank, and were, moreover, required to meet out of his own pocket the cost of travelling between the two branches, he would be allowed a deduction for Income Tax purposes in respect of the expenses so incurred by him. It would appear from the terms of his question that my hon. and gallant Friend is under a misapprehension. The expenses to which I have just referred are quite distinct from the cost of travelling between the taxpayer's place of residence and the place of performance of his duties; no deduction for the latter expense is allowable under the provisions of the Income Tax Acts to a Member of Parliament or to other taxpayers.

Does that mean that if we travel from here to our constituencies, say, to open a flower show, we can deduct the expense, but if we travel from our homes very day we cannot deduct the expense?

Each particular case of expense will be subject to review by the Paymaster-General. I do not pronounce on any particular item which my hon. and gallant Friend puts, but the general principle remains the same. The expenses of travelling to and from home in the performance of ordinary duties have never been allowed, but the case of visiting one's constituency is different.

Where the Member's residence is in his constituency and he goes every week between two places in both of which duties are performed, seeing that both constituency and home are involved, surely he would be allowed the expenses.

No. Upon each occasion the Member would be required to declare that he was at the place because it was his constituency and not because it was his home, and that he went there to discharge duties in connection with his constituency.

If he interviews his constituents on the occasion of his being at home, his business is in the constituency?

It does not mean that, because expenses are not allowed for a visit home. They can only be allowed because the Member goes home in connection with his duties to his constituents.

What about those persons who live between this House and their constituencies? Are they to come to this House to get a proper standpoint from which to visit their constituencies in order to get the allowance?

The ordinary law will rule all cases, as in the case of the ordinary individual taxpayer.

The law remains as it has been. It may be, and, I suppose, is the fact that many Members have not made a claim though they might have done. The ordinary rule of law will apply, and any Member who has had this expense which he has not deducted will be entitled to make a claim for a period of three years.

Government Staffs

Leave

asked the Lord Privy Seal whether there is any general rule as to the amount of leave given in the Government Departments; whether the scale of leave has recently been increased in some Departments from 24 to 42 or more working days; whether such extended period of holidays involves the employment of extra official help; and, if so, what is the estimated cost?

I have been asked to reply. The amount of annual leave allowed, subject to the exigencies of the service, to the staffs of Government Departments, varies according to class and length of service, but does not vary as between Departments where the same class is employed in two or more Departments. I am not aware of any class whose annual leave has recently been increased from 24 to 42 or more working days a year. Such a change would only be authorised in quite exceptional circumstances. The remaining parts of the question, therefore, do not arise.

Unskilled and Clerical Work

asked the Financial Secretary to the Treasury what is the maximum payment in Government Departments for unskilled work and purely clerical work; whether the Treasury endeavours to ensure that its rates of pay are in some relation to those prevailing in private offices for precisely similar work; whether it has received any objections to this course from the staff affected; and, if so, what action it proposes to take in response to these representations?

I am not clear at what point my hon. Friend would draw the line between the different kinds of work mentioned in his question. I may, however, say that the rates of pay of adult male temporary clerks employed in Government offices in the London area on the basis of an attendance of 44 hours a week are at present:

Grade III.—75s. rising to 82s. 6d. a week.

Grade II.—83s. rising to 98s. a week.

Grade I.—91s. rising to 106s. a week.

Bonus is not payable in addition to these rates. It is the endeavour of the Treasury as far as possible to fix the rates of pay of these Government employés at the level of those commonly paid by good outside employers for a similar type of work. A claim has been advanced on behalf of the staff concerned that the above and corresponding rates are inadequate. This claim did not appear to the representatives of the Government to be justified, and has been referred by the representatives of the staff to the Civil Service Arbitration Board, whose award on the claim is now awaited.

Pensions (Bonus)

asked the Financial Secretary to the Treasury the authority under which it has been decided to recognise 75 per cent of the Civil Service war bonus as pensionable; whether the amount will be included in the next Estimates or has been already included in this year's Estimates; whether any payments have been made under the new arrangement or will be made during the coming year; and whether, when the war bonus has passed away, he can state the national liability then remaining in respect of the pensionable part of the bonus?

The reckoning of bonus, in whole or in part, for pension is within the general powers of the Treasury under the Superannuation Acts, and attention was called to the fact that bonus had been recognised as a pensionable emolument in the introductory memorandum to the Estimates for the year ending 31st March, 1921. A recommendation in favour of reckoning 75 per cent. of bonus for pension was included in the Report of the Cost of Living Committee of the Civil Service National Whitley Council, dated 8th May, 1920, and awards have been and are being made and paid on that basis. The necessary provision for the current year has been inserted in the Estimates. It is not possible to estimate the cost of providing, after the date on which bonus ceases, for such part of the pensions then current as may be due to the recognition of 75 per cent. of the bonus at the date of retirement; there are too many unknown factors. The liability will diminish year by year until it disappears.

Is it not true that under the Superannuation Act the Treasury have full power at any time to increase the salaries, pensions or bonuses of all civil servants, although it may involve a very large expenditure of public money?

The interpretation of the Act requires great care. I should be sorry to accept the form of words suggested by my hon. Friend on the spur of the moment; but under the Superannuation Act the Treasury has power to fix the rate of pensions and the basis of pensions.

Is it true that the Cost of Living Committee of the Civil Service National Whitley Council which reported in this matter in May, 1920, consisted entirely of civil servants? If that is so, would it be possible to form some Committee of independent people to study this matter?

The reply which my hon. Friend has just given refers to a Report issued by the Cost of Living Committee of the Civil Service National Whitley Council, and that Committee consisted entirely of civil servants deciding their own case. [HON. MEMBERS: "No!"]

The hon. Member is now giving the information for which he has been asking. If he put a specific question on the Paper, he will get an answer "yes" or "no."

May I ask the Leader of the House if it is possible to appoint a Committee, say of three Members of this House? [HON. MEMBERS: "No!"]

Guards' Regiments (Uniform)

asked the Secretary of State for War what was the cost of supplying scarlet uniforms to four regiments of the Guards?

The initial cost of providing full-dress for the warrant officers, non-commissioned officers, and men of the five regiments of Guards at their strength in June, 1921, is estimated at about £170,000. This figure is exclusive of the bands who had full-dress throughout the War.

Is this the total cost without any addition to what would have been spent for khaki?

I am not sure. I was asked the initial cost, and that is what I have ascertained.

The question has been fully answered. Notice must be given of further questions.

Post Office

Postal Rates (Increase)

asked the Postmaster-General whether he is receiving strong protests from the business community of Nottingham against the proposed increased postal rates; and whether, in view of the heavy additional burden which will be placed upon industry, he will, before making any alteration, appoint a Parliamentary Committee to consider the whole question?

I have received a number of protests against the increased postal rates. I regret the necessity of raising them, but the more important increases were discussed in this House before the Act of last Session was passed, and I do not think it necessary to appoint a Parliamentary Committee to examine them.

Can the right hon. Gentleman say how he expects the revenue of the Post Office to be increased by flying in the face of the experienced business community of this country?

Sunday Posts

asked the Postmaster-General whether the curtailment of the Sunday service in the Post Office is a temporary expedient to cut down expenses or whether it is part of the permanent policy?

The immediate occasion of the curtailment is the necessity of reducing expenditure. But curtailment is a policy long pressed upon the Post Office by Committees of this House, and, for my own part, I am opposed to Sunday labour whenever it can be avoided.

Can the right hon. Gentleman say whether the withdrawal of the service of the Post Office servants will mean a reduction in the wages they have been in the habit of earning?

Is it not a fact that by taking away the Sunday service it will make necessary a rearrangement that will aggravate the evil by instituting night work in place of Sunday work?

Will the £1,000,000 saving be accomplished at the expense of the postal employés?

Can the right hon. Gentleman say if the allowance paid to the dependants of men in the Army, Navy, and Air Force are borne by the buyers of penny and twopenny stamps?

asked the Postmaster-General what will be the position of postmen and other employés in the Post Office whose pensions are based on their weekly earnings when the Sunday service is curtailed; and will those who for years past have been doing Sunday work, and are therefore entitled to have this remuneration included in computing their pension, be allowed to count it or not?

The question of the effect of the abolition of Sunday posts on the condition of service by the Post Office staff is about to be discussed with the representatives of the staff. Perhaps my hon. Friend will allow me to defer answering his question till the discussions have taken place.

asked the Postmaster-General whether his proposed changes with regard to the Sunday handling of letters will affect, and, if so, to what extent, the operation of the telephone services on Sundays?

Except in a few individual cases I do not anticipate that the telephone service will be affected by the abolition of Sunday posts.

Seeing that on Question 61 the right hon. Gentleman said that he was averse to Sunday labour, are we to understand that it is a principle of the Post Office that Sunday labour is to be done away with because the Postmaster-General is not in favour of it?

asked the Postmaster-General whether he is aware of the great inconvenience that will be caused by the proposed abolition of the Sunday collection to people living in remote country districts, and that in some parts there will be no collection from the Saturday night to the Monday night; and whether he will give this matter his attention?

The maintenance of a Sunday postal service in remote country districts has always been the exception rather than the rule. The Government is abolishing postal services on Sunday altogether on account of the objection to Sunday labour in itself and the economy which will result, and it would be inconistent with the attainment of these objects if particular localities were exceptionally treated.

asked the Postmaster-General if it can be arranged that those people or firms who wish for letters on Sunday shall be allowed to fetch them from the Post Office between certain hours on Sunday morning?

I am afraid that no such arrangement can be made without seriously encroaching on the economy effected by the abolition of Sunday posts. In some cases mails despatched on Saturday will not reach the office of destination on Sunday morning as at present. And those received will not be opened, nor will their contents be sorted.

International Postage

asked the Postmaster-General whether, as the result of the recent international conference in Spain, he anticipates that there will be any further increases in international postage; and, if so, what these will be and when they will be introduced?

A large number of countries have already raised their postage rates as a result of the Congress of the Postal Union at Madrid, and the increases in the principal countries are shown in a White Paper which has just been issued. I have no information as to what action is contemplated by other countries, or when any increase that may be decided upon will be introduced. No further increase in the rates to be charged in this country is contemplated.

Telephone Service

asked the Postmaster-General the reasons why telephone subscribers who have money boxes are charged in addition to the rent of the box a further 50 per cent. on the new telephone rates, making an addition of 100 per cent. on the old charges; and whether the main reason for imposing this extra 50 per cent. is that the General Post Office wish to discourage subscribers from having this only possible check upon their calls in order that the existing arrangement of charges may be maintained, from which in practice there is no appeal?

As my right hon. Friend explained on the 19th of April in reply to the hon. and gallant Member for Bury St. Edmunds, the charge of 2d. for each local call is required to meet the operating costs, which are increased by the check exercised by the telephonist as the coins are dropped into the box.

Canadian Magazine Post

asked the Postmaster-General whether, in reconsidering the new postal rates, he will consult British traders with Canada as to their effect in aiding the Americanisation of the Canadian reading market as already evidenced by the growth in the value of Canadian imports of United States magazines and periodicals from 665,816 dollars in 1910 to 2,371,595 dollars in 1920, while in the case of British publications there was a decline of from 64,458 to 40,426 dollars?

It is not proposed to increase the rates for the Canadian magazine post.

asked the Postmaster-General whether he is aware of the handicap put upon the circulation of British literature in Canada by the dilatoriness of the Post Office authorities in notifying shippers of available sailings; and whether more care will be taken in the future compilation of the General Post Office Daily List of direct mails to include all sailings directly they are notified by the steamship companies in their own literature?

The Post Office Daily List shows in each issue when the next magazine post will be despatched to Canada and Newfoundland. As soon as one mail leaves the next is shown. I do not think that more extended information would be of any service; but if the hon. Member has any practical suggestions to offer for improving the announcements in the Daily List I shall be glad to consider them.

Is the hon. Gentleman's Department aware that almost every week there occur cases where steamers are chosen by the Post Office although they are anterior to those by which the mail may be sent?

One of the conditions of the cheap magazine post to Canada, is that the mails may be sent by direct ships. These direct sailings are always shown in the list of steamers, and as much as 5 days' notice is given. I will consult with my hon. Friend on this point.

Commercial Travellers (Railway Facilities)

asked the Minister of Transport if he will consider the advisability of reinstating the special commercial rates for commercial travellers, especially the granting of cheap week-end travelling facilities and the 1d. cloak room fee, in view of the great hardship caused by the withdrawal of these privileges and the great increase in the present railway fares?

asked the Minister of Transport if he is aware that the National Union of Commercial Travellers has received a letter from the Railway Clearing House, dated 29th April, in which the union is informed that the restoration of week-end tickets to commercial travellers has been considered by the railway companies in conference and that they are unable to see their way to re-establish the concession; and whether, if the consideration of the matter has been reopened by the railway companies since that date, he will again urge the companies to grant this concession to commercial travellers or take steps to have the concession granted for the remaining period of Government control?

My right hon. Friend the Minister of Transport has for some time past urged the railway companies in Great Britain to grant cheap week-end tickets to commercial travellers, and regrets that they do not see their way to re-introduce the facility. The Government's possession of the railways terminates in August, and my right hon. Friend would not feel justified in interfering with the commercial discretion of the companies in a matter of this kind during the few remaining weeks. As regards the question of cloak room charges, I would refer the hon. Member to the reply given to the hon. Member for Lanark on the 20th April, a copy of which I am sending him.

Agriculture Act, 1920

Government Decision

Sir A. BOSCAWEN'S ANNOUNCEMENT

( by Private Notice ) asked the Minister of Agriculture whether it is the case that the Government have decided to introduce legislation this Session to repeal Part I of the Agriculture Act, 1920?

( by Private Notice ) asked the Prime Minister whether, in view of its importance to all agricultural interests, he can make any statement as to the reported intention of the Cabinet to repeal Part I of the Agriculture Act and the Corn Production Act; whether, in so doing, he will indicate how this affects the Agricultural Wages Board and the continuance of guaranteed prices to the farmer, and whether this step indicates the complete abolition of the State control of cultivation?

I would first desire to express my regret to the House that information on this subject was communicated to the Press before it was communicated to this House. This House always expects, and quite properly, that information of an important character should be given first to this House. I am sure that the House will believe me when I say that I should be the very last person willingly to transgress this rule.

The Government have been carefully considering for some time past the operation of the Agriculture Act, and have come to the conclusion that the financial liability on the State under Part I of the Agriculture Act is more than the country can afford under present circumstances, and consequently that there is no alternative but to terminate at the earliest possible date the policy guaranteeing minimum prices for wheat and oats. This decision involves also the repeal of the provisions relating to the minimum wage for agricultural workers and to the control of cultivation by the State, which are contained in Part I of the Agriculture Act and in the Corn Production Act. I may add that payments will, of course, have to be made in respect of the wheat and oats which will be harvested this year.

As this is an extraordinarily important announcement to the agricultural industry, would the right hon. Gentleman say when it is proposed to introduce this legislation, and what action he proposes to take with regard to the Agricultural Committees which are now working in the country?

Legislation will be introduced at the earliest possible date. With regard to the Agricultural Committees, I may point out that they were set up, not under the Agriculture Act or the Corn Production Act, but under the Ministry of Agriculture Act, which was passed in 1919, and they therefore will not be affected, except in so far as the work now done by the Cultivation Subcommittees will be brought to a close.

Can the right hon. Gentleman give the substance of that statement to the Agricultural Committees of the country, because they are actually working to-day under the provisions of the Agriculture Act, which was passed only last December?

Yes, Sir; of course, they will continue their work until the new legislation can be carried and until it comes into operation.

Seeing that the proposal will involve, probably, a very sudden fall in agricultural wages, is it proposed to give any similar assistance to agricultural workers to that given in the case of the miners?

That would involve a second subsidy. The Government do not propose a further subsidy after the payment made in respect of this year.

Can the right hon. Gentleman inform me how the duties now being performed by the District Wages Committees, having relation to Part II of the Act, will be performed?

That point has not escaped me. That particular provision of Part II will have to be amended.

Seeing that this is a change of policy on the part of the Government which may lead to a stoppage amongst the agricultural workers—[HON. MEMBERS: "Why?"]—it did in the case of the miners—will the right hon. Gentleman inform us, as he has been in charge of the Department, that he will resign from the Government?

No. I can only say that I do not for a moment believe that the agricultural labourers would be guilty of such a want of common sense as to do that.

Is it proposed to proceed with the composition of the panels of arbitrators by the Lord Chief Justice, as is provided by the Bill?

Yes, because those arbitrators act in respect of Part II of the Bill, which it is not proposed to rescind.

Will the right hon. Gentleman be more explicit as to the date of the introduction of the Bill? Is it next week or next month, or when?

I have already said that the Bill will be introduced at the earliest possible moment in the course of this Session.

What new factor has suddenly developed to account for this very, serious decision, seeing that the Government kept us here until nearly Christmas last to get the Act passed?

I would suggest to my hon. and gallant Friend that those are considerations which ought to be discussed when we come to debate the Second Reading.

A Bill will be required, and that will be the proper time to continue the Debate.

In view of the ambiguity of some of the answers, would the right hon. Gentleman make it plain whether or not the change in wages will take place at the same date as the dropping of the subsidy?

I have said nothing about a change in wages. What I did say, and what I repeat in order to make it clear to my hon. Friend, is that as from a certain date after this harvest it is proposed to decontrol agriculture altogether.

Questions to Ministers

On a point of Order. I gave notice of a question concerning the exercise of clemency in the case of two prisoners in Ireland, who had been beaten to extract evidence. I understand you, Mr. Speaker, disallowed the question on the ground that the Chief Secretary has no power to grant a reprieve. Should I be in order to ask whether the Chief Secretary will advise the Lord Lieutenant to reprieve these men?

The hon. Member sent to me to-day a question identical with that which I disallowed last Monday as a Private Notice question. Exactly what I said to him then pertains at present.

Should I be in order in asking the Chief Secretary whether he will advise the reprieve of these men?

I could not answer a hypothetical question. If the hon. Member submit a question to me for Private Notice, which must be done in writing, I will consider it.

May I have your ruling on another point, and ask whether a Member who opposed certain expenditure when it was before the House is not entitled to put a supplementary question disclosing that fact when another hon. Member, without objection from the Chair, has stated in a supplementary question that no opposition to such expenditure was offered?

To the best of my belief, I am raising a point of Order. The hon. Member for Stafford (Mr. Ormsby-Gore) asked whether certain expenditure on the sanitation of the Continent had not passed this House without any objection. I proposed a supplementary question to" state that at least one, and probably more than one, Member objected, but you did not allow me to put that supplementary question. I ask you whether I am not as much entitled to put that question as my hon. Friend was to put a question which contained a misstatement?

I must limit supplementary questions sometimes, or they would be interminable.

Unemployment Insurance

I beg to move, "That leave be given to bring in a Bill to vary the rates of contributions and the rates and periods of benefit under the Unemployment Insurance Acts, 1920 and 1921, and otherwise to amend those Acts."

4.0 P.M.

As the House knows, we began to run into the heavy weather of trade depression and unemployment last September. There was no rift in the clouds through the winter. In March there was promise of a break on the horizon in one or two quarters. But at that moment there came the coal stoppage, now 69 days in existence, and the outlook became gloomier than ever. Throughout the present grave period of trade depression we have endeavoured to adapt the scheme of unemployment insurance to the needs of the situation. On 3rd March, by calling in aid the Insurance Fund, which had accumulated during and since the War, and by prospectively increasing the contributions, we planned an emergency scheme which was intended to give 16 weeks' benefit between March and November of this year; and another 16 weeks' benefit between November this year and July next. We originally proposed that the rates of benefit should be 18s. for men and 15s. for women. But in deference to the wish expressed in all parts of the House we raised it to 20s. and 16s., respectively, during the passage of the Measure.

Given an average of 9½ per cent. unemployment amongst insured persons for the whole of that period, we could have reached July next year, our funds exhausted, it is true, but free from debt. That was our reasonable hope and expectation. But all these calculations have been upset. To-day the percentage of unemployment amongst insured persons is 23 per cent. Two millions of men and women are wholly unemployed; another million are on short time. We are now paying benefit at the rate of 2 millions a week with an income from contributions of less than £350,000. The insurance fund, which in March last stood at 22½ millions, now stands at 8½ millions. As things are going it will last us only for about another month. Therefore, I must make serious alterations in my scheme to meet a most serious situation. The state of the National Exchequer is known to the House. When, in my distress, I turn to the Chancellor of the Exchequer, he overwhelms me with jeremiads of his own.

These, then, are the plans hard necessity compels me to ask the House to approve. I must reduce benefit as from 4th July to the rates of the 1920 Act—15s. for men and 12s. for women, with proportionate reductions for boys and girls. I must increase contributions from employed persons, employers, and the State. Taking men only—women, boys, and girls follow on similar lines—the contributions from men and their employers are now 4d. each a week, the State adding a fourth to the two. On 4th July, as provided by the Act of March last, the contributions would in any case have been 5d. for the employed man, 6d. for his employer, the State adding a fourth. Those figures will now have to be as from 4th July, men 7d., their employers 8d., the State still adding a fourth.

I said we provided 16 weeks' benefit from March to November. The everdeepening unemployment has compelled a large number of persons to draw those 16 weeks without intermission. So that many will have no assistance from the Fund during past of July, August, September, and October. If things do not improve, the same experience will be encountered with the second 16 weeks designed to cover the period November, 1921, to July, 1922. I must, therefore, even in my present embarrassed position, do what I can to make some further provision for these two periods. I shall ask powers to give, if it prove to be necessary, an extension of six weeks' benefit to the 16 of the Act of last March for each of the periods to which I have just referred. I can sanction no further special schemes of contracting out of the Act till solvency is reached, and I am compelled to ask that the three days' waiting period shall be made six.

Given an average of 1,250,000 of insured persons unemployed over the whole period, July, 1921, to July, 1922, the maximum deficiency which these readjustments would give at any period would be about £16,000,000, which must meanwhile be advanced by the Exchequer. That is the maximum liability which, in present financial conditions, the Treasury can incur. We impose it upon the Exchequer with great reluctance. It will be repaid as circumstances become, normal. The limit of £10,000,000 borrowing power which I have in the Act of last March—and which I have not yet drawn upon—must, therefore, to carry me on to July, 1922, be increased to £20,000,000, a manifestly regrettable and costly expedient; and the scheme of reduced benefits, side by side with in-creased contributions, must stand till the fund is again solvent. These are the main lines of the scheme of the Bill which continuous trade depression, acutely accentuated by the coal dispute, makes absolutely necessary.

On a point of Order. The right hon. Gentleman has brought in a Bill, which, as I understand, increases the contribution from the State. According to Standing Order No. 166:

"If the main object of a Bill is to impose a charge upon the public revenues of the United Kingdom … or upon the people … its introduction must be preceded and authorised by a Resolution of a Committee of the whole House."

I submit that it is essential, as this Bill imposes an increased contribution upon the State, that it should be preceded by a Resolution of a Committee of the Whole House. I do not express any opinion upon the Bill itself, but I do upon this question of procedure, because it is very essential that the House should keep a close grip of its financial power.

The right hon. Gentleman, I imagine, has been quoting from what we call the Green Book—the "Manual of Procedure." He quotes Paragraph No. 166. That is not a Standing Order. There is no Standing Order No. 166. Apart from that, there is nothing that would show me that this is a Bill the main object of which is to impose a charge upon the public revenues of the United Kingdom. The Bill, as we see it here, is one to vary the rates of contributions and the rates and periods of benefits under the Unemployment Insurance Act. If there be a charge on the Exchequer involved in the Bill, then that part of the Bill will have to be validated by a Money Resolution. If, subsequently, it did appear to me that the main object of the Bill was to impose a charge upon the public revenues, then the procedure referred to by the right hon. Gentleman would have to be adopted, and this stage would have to be cancelled. Until I see the Bill, I cannot express any opinion upon the matter.

May I call your attention to Standing Order No. 71, which says:

"If any Motion be made in the House for any aid, grant, or charge upon the public revenue, whether payable out of the Consolidated Fund or out of money to be provided by Parliament"—

that is the Motion made by the right hon. Gentleman—

"the consideration … shall be adjourned till such further day as the House shall think fit … and then shall be referred to a Committee of the whole House."

That is perfectly right. If there be any part of the Bill requiring a Money Resolution, that procedure will have to be followed.

May I direct your attention to these words:

"If the main object of a Bill is to impose a charge upon the public revenues of the United Kingdom, or upon the people."

This certainly does impose a charge upon the people, namely, the employers and the employed. Therefore, I submit that, before such a Bill can be introduced, it should be preceded by a Resolution in Committee authorising such expenditure.

"A charge upon the people" is a term with which we are quite familiar, and it certainly does not cover such a question as insurance contributions.

As the main object of the Bill is to make the Unemployment Fund solvent by increasing the contributions from the employers and the employed, with a similar percentage from the State, and as it will require some £8,000,000 from the public funds, will not a Financial Resolution be necessary?

There may be no Standing Order in the way of the right hon. Gentleman introducing this Bill under the Ten Minute Rule, but there is a standing practice which Governments in the past have observed, and that is the practice of having some sense of proportion in what they do. There never has been a Bill involving such big considerations, financial and otherwise, which ever before in the history of Parliament has been introduced under the Ten Minutes Rule. I cannot in the few brief moments that I have even approach the underlying problems out of which this Bill has arisen. It is a most amazing step even for this Government to take. The Government has chosen this method of dealing with the problem of unemployment. It has limited its action in relation to unemployment to insurance, and now we have the spectacle of unemployment becoming worse and daily deepening in every sense of the term, and at the very worst stage of the unemployment trouble, when great suffering is being endured, the Government comes forward to undo a good part even of the little which they have attempted in the way of providing relief or remedy by means of National Insurance. I admit, as has been observed in many quarters of the House when this question has been dealt with before, that there are individual cases of workers, and perhaps even of groups of workers, who have abused the provisions of the Act and the assistance provided under it. There is, however, no justification for withholding a reasonable degree of support from the vast majority of the workers who have no opportunity in face of the industrial outlook, of securing employment for a considerable time to come. I do not assert that my right hon. Friend has used this argument, but we know that outside the walls of this House, and in certain quarters of the House, it will be used to justify the course which has been taken. So I am anticipating an objection which is not valid in relation to the general terms of the Insurance Act. The right hon. Gentleman has mentioned that his resources are not yet exhausted. He has still £8,500,000, and he has still borrowing powers which he has not exercised. We have suggested, when Unemployment Insurance Debates took place on previous occasions that this unemployment difficulty after all should be regarded as only a temporary phase of our industrial situation. It surely is not to be a permanent condition of British trade. Before the serious stage of unemployment was reached, what happened? Millions accumulated in the fund over years of normal ordinary conditions of employment with only a low percentage of unemployment. It is upon those millions we have been drawing for some time past to meet existing demands—the excessive demands of the moment. It is a reasonable businesslike proposition, that we should draw upon our certain future prosperity, upon the normal condition of trade that we will reach in the years to come, in order to enable us to meet the difficulties of the moment and the difficulties which no doubt for some months will yet exist, rather than inflict further privations upon those whose unemployment "benefit is only too low in relation to the existing cost of living. The right hon. Gentleman has chosen not to follow that course. The provisions of this Bill go to the length of reducing benefits. Taking away one-fourth of a man's weekly pay, a drop from £1 to 15s. is an extremely serious matter to the man who has only the £1 to depend upon.

In addition to that reduction, in many cases you have an increase in the contribution. You have the fact that very many, if not most, of those who have been receiving these benefits for some time have not paid much into the fund at all. Many of them have paid nothing. Provisions are made now whereby those who paid nothing at all into the fund can receive benefit from it, and there are men who yet have to come on to the fund in face of the certainty of extended unemployment in certain trades not yet touched by industrial depression. You have thus the fact that men who have paid longest under the terms of the present Act are the men who will have to receive the reduced benefit which the Bill proposes. I submit that is not fair. Another provision in the Bill is the increase in the waiting period. That increase will mean, for a considerable number of workers, that they will have no opportunity at all of drawing even the 15s. They will be made to pay, but the nature and the circumstances of their unemployment are such that the doubling of the waiting period will make it impossible for them to draw anything. We suggest, therefore, a fuller exercise of the borrowing powers not yet used. We suggest that the Government should do what many of the trades unions at this moment are doing, borrowing and pledging their credit for the future in order to meet the abnormal needs of the present. We have not an opportunity of going deeply into this matter, but there is one aspect of it which I seriously put to my right hon. Friend. It is the aspect of the effect of this measure upon the general industrial and wage situation. As he knows, nearly all his time at present is being spent in the useful function of the peacemaker. He is trying to settle disputes, in all cases arising from demands being made by employers for reduced wages. This Bill will encourage further demands. It will make many employers believe that it will be easier for them to impose excessive wage reductions upon their workers. Therefore I fear this Bill, if it be passed into law, will cause further industrial trouble, probably stoppages, strikes and disturbances which we should wish to avoid, for there are still employers who are holding their hands and not pressing wage reduction demands because they think their workers might offer some degree of resistence in view of the assistance they receive from the State in the form of unemployment pay. Withdraw that slender support on which the workers in many cases are able to fall back, and you offer encouragement to employers further to attack the wages of the workers and impose what we regard as altogether excessive reductions. The House, I trust, will not look upon this proposal in any perfunctory, detached, or disinterested light. 2,000,000 of workers totally unemployed, totally dependent upon this weekly dole, and the cost of living still not lessened much! Are we, whatever our difficulties personally may be, who are still fortified with clothing, food, and shelter, to be so callous as to approve of proposals of this kind even in face of what may be, and what actually are, the financial embarrassments of the Government? Financial embarrassment at this time does not justify this proposal. I claim that the workers in their distress, with their small weekly allowance of £1 a week, are entitled, until the cost of living is reduced, to look to a continuance of that weekly support unless the Government takes some other steps to relieve them from the privations and hardships of unemployment. We are, therefore, resolved and compelled on the first stage of this Measure, to offer it every possible resistance, and we trust in offering that resistance we shall not be alone as Labour Members, but that for the purpose of protecting the labouring class against the hardship and injustice of this proposal, every man in the House will look upon himself as a Labour Member.

Question put, "That leave be given to bring in a Bill to vary the rates of contributions and the rates and periods of benefit under the Unemployment Insurance Acts, 1920 and 1921, and otherwise to amend those Acts."

The House divided: Ayes, 221; Noes, 62.

Division No. 152.]

AYES.

[4.35 p.m.

Adair, Rear-Admiral Thomas B. S.

Gardner, Ernest

Morison, Rt. Hon. Thomas Brash

Adkins, Sir W. Ryland D.

Gibbs, Colonel George Abraham

Morris, Richard

Agg-Gardner, Sir James Tynte

Gilmour, Lieut.-Colonel Sir John

Morrison, Hugh

Amery, Leopold C. M. S.

Glyn, Major Ralph

Munro, Rt. Hon. Robert

Ashley, Colonel Wilfrid W.

Goulding, Rt. Hon. Sir Edward A.

Murchison, C. K.

Astor, Viscountess

Greenwood, William (Stockport)

Murray, John (Leeds, West)

Bagley, Captain E. Ashton

Greig, Colonel James William

Nall, Major Joseph

Baird, Sir John Lawrence

Gretton, Colonel John

Neal, Arthur

Baldwin, Rt. Hon. Stanley

Gritten, W. G. Howard

Newman, Colonel J. R. P. (Finchley)

Balfour, George (Hampstead)

Guinness, Lieut.-Col. Hon. W. E.

Nicholson, Reginald (Doncaster)

Barlow, Sir Montague

Gwynne, Rupert S.

Nicholson, William G. (Petersfield)

Barnston, Major Harry

Hacking, Captain Douglas H.

Norton-Griffiths, Lieut.-Col. Sir John

Barrand, A. R.

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

Oman, Sir Charles William C.

Bellairs, Commander Carlyon W.

Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by)

Ormsby-Gore, Hon. William

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

Hamilton, Major C. G. C.

Palmer, Brigadier-General G. L.

Bethell, Sir John Henry

Hannon, Patrick Joseph Henry

Pearce, Sir William

Betterton, Henry B.

Harmsworth, C. B. (Bedford, Luton)

Perring, William George

Bigland, Alfred

Harmsworth, Hon. E. C. (Kent)

Pickering, Colonel Emil W.

Bird, Sir A. (Wolverhampton, West)

Harris, Sir Henry Percy

Pollock, Sir Ernest Murray

Bird, Sir William B. M. (Chichester)

Hennessy, Major J. R. G.

Pownall, Lieut.-Colonel Assheton

Blair, Sir Reginald

Henry, Denis S. (Londonderry, S.)

Pratt, John William

Borwick, Major G. O.

Hewart, Rt. Hon. Sir Gordon

Pretyman, Rt. Hon. Ernest G.

Boscawen, Rt. Hon. Sir A. Griffith-

Hills, Major John Waller

Raeburn, Sir William H.

Bowyer, Captain G. W. E.

Hinds, John

Raper, A. Baldwin

Boyd-Carpenter, Major A.

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

Ratcliffe, Henry Butler

Brassey, H. L. C.

Hohler, Gerald Fitzroy

Rees, Sir J. D. (Nottingham, East)

Bridgeman, Rt. Hon. William Clive

Holbrook, Sir Arthur Richard

Rees, Capt. J. Tudor- (Barnstaple)

Briggs, Harold

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

Renwick, George

Brown, Major D. C.

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

Richardson, Alexander (Gravesend)

Bruton, Sir James

Hopkins, John W. W.

Roberts, Samuel (Hereford, Hereford)

Buchanan, Lieut.-Colonel A. L. H.

Hopkinson, A. (Lancaster, Mossley)

Roberts, Sir S. (Sheffield, Ecclesall)

Buckley, Lieut.-Colonel A.

Horne, Edgar (Surrey, Guildford)

Robinson, S. (Brecon and Radnor)

Bull, Rt. Hon. Sir William James

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

Rodger, A. K.

Burdon, Colonel Rowland

Howard, Major S. G.

Roundell, Colonel R. F.

Burn, Col. C. R. (Devon, Torquay)

Hudson, R. M.

Samuel, A. M. (Surrey, Farnham)

Butcher, Sir John George

Hunter, General Sir A. (Lancaster)

Samuel, Rt. Hon. Sir H. (Norwood)

Carew, Charles Robert S.

Hurst, Lieut.-Colonel Gerald B.

Sanders, Colonel Sir Robert Arthur

Carr, W. Theodore

Inskip, Thomas Walker H.

Scott, Sir Samuel (St. Marylebone)

Casey, T. W.

James, Lieut.-Colonel Hon. Cuthbert

Shaw, Capt. William T. (Forfar)

Cecil, Rt. Hon. Evelyn (Birm., Aston)

Jones, Sir Evan (Pembroke)

Shortt, Rt. Hon. E. (N'castle-on-T.)

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Jones, Henry Haydn (Merioneth)

Smithers, Sir Alfred W.

Chamberlain, N. (Birm., Ladywood)

Jones, J. T. (Carmarthen, Llanelly)

Sprot, Colonel Sir Alexander

Cheyne, Sir William Watson

Kellaway, Rt. Hon. Fredk. George

Starkey, Captain John Ralph

Clough, Robert

Kidd, James

Stephenson, Lieut.-Colonel H. K.

Cobb, Sir Cyril

King, Captain Henry Douglas

Stevens, Marshall

Cockerill, Brigadier-General G. K.

Kinloch-Cooke, Sir Clement

Stewart, Gershom

Cohen, Major J. Brunel

Lambert, Rt. Hon. George

Sturrock, J. Leng

Colfox, Major Wm. Phillips

Lane-Fox, G. R.

Sugden, W. H.

Craig, Captain C. C. (Antrim, South)

Lindsay, William Arthur

Surtees, Brigadier-General H. C.

Craik, Rt. Hon. Sir Henry

Lister, Sir R. Ashton

Terrell, George (Wilts, Chippenham)

Curzon, Captain Viscount

Lloyd, George Butler

Terrell, Captain R. (Oxford, Henley)

Davidson, J. C. C. (Hemel Hempstead)

Lloyd-Greame, Sir P.

Thomson, Sir W. Mitchell- (Maryhill)

Davies, Thomas (Cirencester)

Locker-Lampson, G. (Wood Green)

Townley, Maximilian G.

Davison, Sir W. H. (Kensington, S.)

Lowther, Major C. (Cumberland, N.)

Townshend, Sir Charles V. F.

Dean, Commander P. T.

Lowther, Maj.-Gen. Sir H. C. (P'nrith)

Tryon, Major George Clement

Denniss, Edmund R. B. (Oldham)

M'Curdy, Rt. Hon. Charles A.

Turton, Edmund Russborough

Dockrell, Sir Maurice

M'Donald, Dr. Bouverie F. P.

Walton, J. (York, W.R., Don Valley)

Doyle, N. Grattan

Mackinder, Sir H. J. (Camlachie)

Ward-Jackson, Major C. L.

Du Pre, Colonel William Baring

M'Lean, Lieut.-Col. Charles W. W.

Waring, Major Walter

Edwards, Major J. (Aberavon)

Macleod, J. Mackintosh

Warner, Sir T. Courtenay T.

Eyres-Monsell, Com. Bolton M.

McMicking, Major Gilbert

Weston, Colonel John Wakefield

Falle, Major Sir Bertram Godfray

Macnamara, Rt. Hon. Dr. T. J.

Willoughby, Lieut.-Col. Hon. Claud

Farquharson, Major A. C.

McNeill, Ronald (Kent, Canterbury)

Wilson, Col. M. J. (Richmond)

Fell, Sir Arthur

Macpherson, Rt. Hon. James I.

Winfrey, Sir Richard

Fisher, Rt. Hon. Herbert A. L.

Magnus, Sir Philip

Wise, Frederick

FitzRoy, Captain Hon. Edward A.

Mallaby-Deeley, Harry

Wolmer, Viscount

Flannery, Sir James Fortescue

Mallalieu, Frederick William

Wood, Hon. Edward F. L. (Ripon)

Ford, Patrick Johnston

Marriott, John Arthur Ransome

Woolcock, William James U.

Foreman, Sir Henry

Mason, Robert

Yate, Colonel Sir Charles Edward

Forrest, Walter

Middlebrook, Sir William

Young, E. H. (Norwich)

Foxcroft, Captain Charles Talbot

Mildmay, Colonel Rt. Hon. F. B.

Fraser, Major Sir Keith

Mitchell, William Lane

TELLERS FOR THE AYES.—

Gange, E. Stanley

Mond, Rt. Hon. Sir Alfred Moritz

Colonel Leslie Wilson and Mr.

Ganzoni, Sir John

Moore, Major-General Sir Newton J.

Dudley Ward.

Gardiner, James

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

NOES.

Barker, G. (Monmouth, Abertillery)

Carter, W. (Nottingham, Mansfield)

Glanville, Harold James

Barton, Sir William (Oldham)

Clynes, Rt. Hon. John R.

Graham, D. M. (Lanark, Hamilton)

Bentinck, Lord Henry Cavendish-

Davies, A. (Lancaster, Clitheroe)

Grundy, T. W.

Bramsdon, Sir Thomas

Edwards, C. (Monmouth, Bedwellty)

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

Cairns, John

Edwards, G. (Norfolk, South)

Hall, F. (York, W. R., Normanton)

Cape, Thomas

Galbraith, Samuel

Hartshorn, Vernon

Hayday, Arthur

Murray, Dr. D. (Inverness & Ross)

Thorne, G. R. (Wolverhampton, E.)

Hodge, Rt. Hon. John

Myers, Thomas

Ward, Col. J. (Stoke-upon-Trent)

Hogge, James Myles

Newbould, Alfred Ernest

Waterson, A. E.

Irving, Dan

O'Grady, James

Wedgwood, Colonel Josiah C.

John, William (Rhondda, West)

Parkinson, John Allen (Wigan)

White, Charles F. (Derby, Western)

Kennedy, Thomas

Rendall, Athelstan

Wignall, James

Kenworthy, Lieut.-Commander J. M.

Richardson, R. (Houghton-le-Spring)

Williams, Aneurin (Durham, Consett)

Kenyon, Barnet

Robertson, John

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

Lawson, John James

Rose, Frank H.

Wilson, W. Tyson (Westhoughton)

Lunn, William

Royce, William Stapleton

Wintringham, Thomas

Macdonald, Rt. Hon. John Murray

Sexton, James

Wood, Major M. M. (Aberdeen, C.)

Maclean, Neil (Glasgow, Govan)

Smith, W. R. (Wellingborough)

Young, Robert (Lancaster, Newton)

MacVeagh, Jeremiah

Spencer, George A.

Malone, Major P. B. (Tottenham, S.)

Spoor, B. G.

TELLERS FOR THE NOES.—

Mills, John Edmund

Thomas, Brig.-Gen. Sir O. (Anglesey)

Mr. Arthur Henderson and Mr.

Morgan, Major D. Watts

Thomson, T. (Middlesbrough, West)

T. Griffiths.

Bill ordered to be brought in by Dr. Macnamara, the Chancellor of the Exchequer. Sir Alfred Mond, and Sir Montague Barlow.

Unemployment Insurance Bill,

"to vary the rates of contributions and the rates and periods of benefit under the Unemployment Insurance Acts, 1920 and 1921, and otherwise to amend those Acts," presented accordingly, and read the First time; to be read a Second

time To-morrow, and to be printed. [Bill 133.]

Business of the House

Motion made, and Question put,

"That the Proceedings relating to Resolutions reported from the Committee of Supply [24th May] be exempted at this day's Sitting from the provisions of the Standing Order (Sittings of the House)."—[ Mr. Chamberlain. ]

The House divided: Ayes, 240; Noes, 64.

Division No. 153.]

AYES.

[4 35 p.m.

Adair, Rear-Admiral Thomas B. S.

Cheyne, Sir William Watson

Gwynne, Rupert S.

Addison, Rt. Hon. Dr. Christopher

Clough, Robert

Hacking, Captain Douglas H.

Adkins, Sir W. Ryland D.

Coats, Sir Stuart

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

Agg-Gardner, Sir James Tynte

Cobb, Sir Cyril

Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by)

Amery, Leopold C. M. S.

Cockerill, Brigadier-General G. K.

Hamilton, Major C. G. C.

Ashley, Colonel Wilfrid W.

Cohen, Major J. Brunel

Hannon, Patrick Joseph Henry

Astor, Viscountess

Colfox, Major Wm. Phillips

Harmsworth, C. B. (Bedford, Luton)

Bagley, Captain E. Ashton

Cowan, D. M. (Scottish Universities)

Harmsworth, Hon. E. C. (Kent)

Baird, Sir John Lawrence

Craig, Captain C. C. (Antrim, South)

Harris, Sir Henry Percy

Baldwin, Rt. Hon. Stanley

Curzon, Captain Viscount

Hennessy, Major J. R. G.

Balfour, George (Hampstead)

Davidson, J. C. C. (Hemel Hempstead)

Henry, Denis S. (Londonderry, S.)

Banbury, Rt. Hon. Sir Frederick G.

Davies, Thomas (Cirencester)

Hewart, Rt. Hon. Sir Gordon

Barlow, Sir Montague

Davison, Sir W. H. (Kensington, S.)

Hills, Major John Waller

Barnes, Rt. Hon. G. (Glas., Gorbals)

Dean, Commander P. T.

Hinds, John

Barnston, Major Harry

Denniss, Edmund R. B. (Oldham)

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

Barrand, A. R.

Dockrell, Sir Maurice

Hohler, Gerald Fitzroy

Bellairs, Commander Carlyon W.

Doyle, N. Grattan

Holbrook, Sir Arthur Richard

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

Du Pre, Colonel William Baring

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

Bethell, Sir John Henry

Edwards, Major J. (Aberavon)

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

Betterton, Henry B.

Eyres-Monsell, Com. Bolton M.

Hopkins, John W. W.

Bigland, Alfred

Falle, Major Sir Bertram Godfray

Hopkinson, A. (Lancaster, Mossley)

Bird, Sir A. (Wolverhampton, West)

Farquharson, Major A. C.

Horne, Edgar (Surrey, Guildford)

Bird, Sir William B. M. (Chichester)

Fell, Sir Arthur

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

Blair, Sir Reginald

FitzRoy, Captain Hon. Edward A.

Hotchkin, Captain Stafford Vere

Borwick, Major G. O.

Flannery, Sir James Fortescue

Howard, Major S. G.

Boscawen, Rt. Hon. Sir A. Griffith-

Ford, Patrick Johnston

Hudson, R. M.

Bowyer, Captain G. W. E.

Foreman, Sir Henry

Hunter, Gen. Sir A. (Lancaster)

Boyd-Carpenter, Major A.

Forrest, Walter

Hurst, Lieut.-Colonel Gerald B.

Brassey, H. L. C.

Foxcroft, Captain Charles Talbot

Inskip, Thomas Walker H.

Breese, Major Charles E.

Fraser, Major Sir Keith

James, Lieut.-Colonel Hon. Cuthbert

Bridgeman, Rt. Hon. William Clive

Gange, E. Stanley

Jones, Sir Evan (Pembroke)

Briggs, Harold

Ganzoni, Sir John

Jones, Henry Haydn (Merioneth)

Brown, Major D. C.

Gardiner, James

Jones, J. T. (Carmarthen, Llanelly)

Bruton, Sir James

Gardner, Ernest

Kellaway, Rt. Hon. Fredk. George

Buchanan, Lieut.-Colonel A. L. H.

Gibbs, Colonel George Abraham

Kidd, James

Buckley, Lieut.-Colonel A.

Gilmour, Lieut.-Colonel Sir John

King, Captain Henry Douglas

Bull, Rt. Hon. Sir William James

Glyn, Major Ralph

Kinloch-Cooke, Sir Clement

Burdon, Colonel Rowland

Gould, James C.

Lambert, Rt. Hon. George

Burn, Col. C. R. (Devon, Torquay)

Goulding, Rt. Hon. Sir Edward A.

Lane-Fox, G. R.

Butcher, Sir John George

Green, Albert (Derby)

Lewis, T. A. (Glam., Pontypridd)

Carew, Charles Robert S.

Greenwood, William (Stockport)

Lindsay, William Arthur

Carr, W. Theodore

Greer, Harry

Lister, Sir R. Ashton

Casey, T. W.

Greig, Colonel James William

Lloyd, George Butler

Cecil, Rt. Hon. Evelyn (Birm, Aston)

Gretton, Colonel John

Lloyd-Greame, Sir P.

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Gritten, W. G. Howard

Lowther, Major C. (Cumberland, N.)

Chamberlain, N. (Birm., Ladywood)

Guinness, Lieut.-Col. Hon. W. E.

Lowther, Maj.-Gen. Sir H. C. (P'nrith)

M'Donald, Dr. Bouverie F. P.

Oman, Sir Charles William C.

Starkey, Captain John Ralph

Macdonald, Rt. Hon. John Murray

Ormsby-Gore, Hon. William

Stephenson, Lieut.-Colonel H. K.

Mackinder, Sir H. J. (Camlachie)

Palmer, Brigadier-General G. L.

Stewart, Gershom

McLaren, Robert (Lanark, Northern)

Pearce, Sir William

Sturrock, J. Leng

M'Lean, Lieut.-Col. Charles W. W.

Perkins, Walter Frank

Sugden, W. H.

Macleod, J. Mackintosh

Perring, William George

Surtees, Brigadier-General H. C.

McMicking, Major Gilbert

Pickering, Colonel Emil W.

Terrell, George (Wilts, Chippenham)

Macnamara, Rt. Hon. Dr. T. J.

Pinkham, Lieut.-Colonel Charles

Terrell, Captain R. (Oxford, Henley)

McNeill, Ronald (Kent, Canterbury)

Pollock, Sir Ernest Murray

Thomson, F. C. (Aberdeen, South)

Macpherson, Rt. Hon. James I.

Pownall, Lieut.-Colonel Assheton

Thomson, Sir W. Mitchell (Maryhill)

Magnus, Sir Philip

Pratt, John William

Townley, Maximilian G.

Mallaby-Deeley, Harry

Pretyman, Rt. Hon. Ernest G.

Townshend, Sir Charles V. F.

Mallalieu, Frederick William

Raeburn, Sir William H.

Tryon, Major George Clement

Malone, Major P. B. (Tottenham, S.)

Randles, Sir John Scurrah

Turton, Edmund Russborough

Marriott, John Arthur Ransome

Raper, A. Baldwin

Walton, J. (York, W. R., Don Valley)

Mason, Robert

Ratcliffe, Henry Butler

Ward-Jackson, Major C. L.

Middlebrook, Sir William

Rees, Sir J. D. (Nottingham, East)

Ward, Col. J. (Stoke-upon-Trent)

Mildmay, Colonel Rt. Hon. F. B.

Rees, Capt. J. Tudor (Barnstaple)

Ward, William Dudley (Southampton)

Mitchell, William Lane

Remnant, Sir James

Waring, Major Walter

Moore, Major-General Sir Newton J.

Renwick, George

Warner, Sir T. Courtenay T.

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

Richardson, Alexander (Gravesend)

Weston, Colonel John Wakefield

Morison, Rt. Hon. Thomas Brash

Roberts, Samuel (Hereford, Hereford)

Willoughby, Lieut.-Col. Hon. Claud

Morris, Richard

Roberts, Sir S. (Sheffield, Ecclesall)

Wilson, Col. M. J. (Richmond)

Morrison, Hugh

Robinson, S. (Brecon and Radnor)

Winfrey, Sir Richard

Munro, Rt. Hon. Robert

Rodger, A. K.

Wise, Frederick

Murchison, C. K.

Roundell, Colonel R. F.

Wolmer, Viscount

Murray, Hon. A. C. (Aberdeen)

Samuel, A. M. (Surrey, Farnham)

Wood, Hon. Edward F. L. (Ripon)

Murray, Hon. Gideon (St. Rollox)

Samuel, Rt. Hon. Sir H. (Norwood)

Woolcock, William James U.

Murray, John (Leeds, West)

Sanders, Colonel Sir Robert Arthur

Yate, Colonel Sir Charles Edward

Nall, Major Joseph

Scott, Sir Samuel (St. Marylebone)

Yeo, Sir Alfred William

Neal, Arthur

Seddon, J. A.

Young, E. H. (Norwich)

Newman, Colonel J. R. P. (Finchley)

Shaw, Capt. William T. (Forfar)

Younger, Sir George

Nicholson, Reginald (Doncaster)

Shortt, Rt. Hon. E. (N'castle-on-T.)

Nicholson, William G. (Petersfield)

Smithers, Sir Alfred W.

TELLERS FOR THE AYES.—

Norton-Griffiths, Lieut.-Col. Sir John

Sprot, Colonel Sir Alexander

Colonel Leslie Wilson and Mr.

McCurdy.

NOES.

Barker, G. (Monmouth, Abertillery)

Hayward, Evan

Rose, Frank H.

Barton, Sir William (Oldham)

Henderson, Rt. Hon. A. (Widnes)

Royce, William Stapleton

Benn, Captain Wedgwood (Leith)

Hodge, Rt. Hon. John

Sexton, James

Bentinck, Lord Henry Cavendish-

Hogge, James Myles

Smith, W. R. (Wellingborough)

Bramsdon, Sir Thomas

Irving, Dan

Spencer, George A.

Cairns, John

John, William (Rhondda, West)

Spoor, B. G.

Cape, Thomas

Kennedy, Thomas

Thomas, Brig.-Gen. Sir O. (Anglesey)

Carter, W. (Nottingham, Mansfield)

Kenworthy, Lieut.-Commander J. M.

Thomson, T. (Middlesbrough, West)

Clynes, Rt. Hon. John R.

Kenyon, Barnet

Thorne, G. R. (Wolverhampton, E.)

Davies, A. (Lancaster, Clitheroe)

Lawson, John James

Waterson, A. E.

Edwards, C. (Monmouth, Bedwellty)

Lunn, William

Wedgwood, Colonel Josiah C.

Edwards, G. (Norfolk, South)

Maclean, Neil (Glasgow, Govan)

White, Charles F. (Derby, Western)

Entwistle, Major C. F.

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

Wignall, James

Galbraith, Samuel

MacVeagh, Jeremiah

Williams, Aneurin (Durham, Consett)

Glanville, Harold James

Mills, John Edmund

Williams, Col. P. (Middlesbrough, E.)

Graham, D. M. (Lanark, Hamilton)

Myers, Thomas

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

Graham, W. (Edinburgh, Central)

Newbould, Alfred Ernest

Wilson, W. Tyson (Westhoughton)

Griffiths, T. (Monmouth, Pontypool)

O'Grady, James

Wood, Major M. M. (Aberdeen, C.)

Grundy, T. W.

Parkinson, John Allen (Wigan)

Young, Robert (Lancaster, Newton)

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

Pearce, Sir William

Hall, F. (York, W. R., Normanton)

Rendall, Athelstan

TELLERS FOR THE NOES.—

Hartshorn, Vernon

Richardson, R. (Houghton-le-Spring)

Dr. Murray and Major Watts

Hayday, Arthur

Robertson, John

Morgan.

Bills Reported

Earby Urban District Council Bill [ Lords ],

North Eastern Railway Bill [ Lords ],

Reported, with Amendments; Reports to lie upon the Table, and to be printed.

Pilotage Provisional Orders (No. 4) Bill,

Reported, without Amendment [Provisional Orders confirmed]; Report to lie upon the Table.

Bill to be read the Third time To-morrow.

Local Government (Ireland) Provisional Orders Bill,

Reported, with an Amendment [Provisional Orders confirmed]; Report to lie upon the Table.

Bill, as amended, to be considered To-morrow.

Coventry Corporation Bill [ Lords ],

Westminster City Council (General Powers) Bill [ Lords ],

Eastbourne Waterworks Bill [ Lords ],

Reported, with Amendments; Reports to lie upon the Table, and to be printed.

Standing Orders

Resolutions reported from the Select Committee:

1. "That, in the case of the Slough Trading Company, Limited (Canal) [Lords], Petition for Bill, the Standing Orders ought to be dispensed with:—That the parties be permitted to proceed with their Bill."

2. "That, in the case of the Londonderry Corporation Bridge [Lords], Petition for Bill, the Standing Orders ought to be dispensed with:—That the parties be permitted to proceed with their Bill."

Resolutions agreed to.

Orders of the Day

Housing (Scotland) (No. 2) Bill

Order for Second Reading read.

I beg to move, "That the Bill be now read a Second time."

This Motion has been preceded by the issue of a White Paper, and the scope and purport of the Bill have been explained by my hon. Friend the Parliamentary Secretary, both on the Committee and Report stages of the Financial Resolution. In these circumstances I consider myself absolved from making any other than the briefest statement in inviting the House to give a Second Reading to the Bill. The Bill consists of three Clauses. Clause 1 extends the time during which a subsidy is payable in respect of houses constructed in Scotland. The House will remember the history of legislation of this kind. We had the Housing (Additional Powers) Act in 1919, which provided that a subsidy might be paid to private builders for a period of twelve months from December, 1919. It was found that, owing to difficulties connected with labour and materials, and so on, that time was insufficient, and accordingly this House in 1920 passed the Housing (Scotland) Act, extending the period, which was one year, to two years from the date I have mentioned—namely, December, 1919. Again, that time proved too short, and therefore in this Bill it is proposed again to extend the period. In the case of ordinary houses it is proposed that the period shall now extend to two and a-half years, instead of two years, from December, 1919, an addition of six months to the existing statutory period which was sanctioned by this House last year. That so far as ordinary houses are concerned. I would remind the House that similar provision for extending the time in England has been sanctioned by the House, and the Bill sanctioning that extension is now in another place. The justification for the extension in the one case is precisely the justification for it in the other; namely, that owing to shortage of material and labour troubles it has taken much longer than anticipated to secure the building of these houses. Accordingly, I say, so far as ordinary houses are concerned, it is proposed to extend the period by six months more.

The House will notice that in the case of other houses of a special character, namely, those which are built by crofters, small landholders, and fishermen—because that is what the Bill means—it is proposed to give a longer extension, to 23rd June, 1923—that is to say, 18 months instead of six months. The crofter, the fisherman, and the small landholder will have so much longer during which to enjoy the subsidy to build his house than the ordinary man who proposes to build. The House will agree that that is a very fair proposal when it remembers the peculiar difficulties that affect the classes to which I have referred. Take the case of the crofter. The crofter builds his own house with assistance of his friends, and he can only build in his spare time. Part of the year he is engaged in fishing operations; and when you remember that he is deprived of the assistance of a contractor to put up his house, and that he can only put up his house in his spare time, I do not think I need stress the point that he should have longer time within which to do the work.

This scheme has been devised by the Board of Health for the express purpose of helping that very deserving class of men and making things easy for them. The House may be interested to know that certificates, approving of plans for the erection of houses under the Subsidy Scheme, have been given by the Board in 2,127 cases, so far as the general scheme is concerned. In regard to the crofter scheme which has just been initiated, 11 certificates have been granted. I do not doubt, once this extension is intimated, these houses will proceed at a much greater speed, and an early pronouncement on the subject is most desirable. Under existing conditions, the crofter is afraid he will not have time to finish his house and earn the subsidy. This provision of Clause 1 will, therefore, I hope, commend itself to the House.

Clause 2 is of a different character. Its purpose is two-fold. In the first place it has been inserted for the protection of the Treasury. Apart from some such provision as Clause 2 contains it might be argued that if the existing period be extended during which the houses may be built, Scotland would be entitled to claim a larger share of the money for houses erected during the extended period than she is traditionally entitled to, that is the Goschen share or eleven-eightieths. In order to make clear how the matter stands this Clause has been put in to protect the Treasury against the argument which I have mentioned. It is a maintainable argument, but I do not think it is a sound one—that inasmuch as the period is extended the monetary assistance should also be extended to Scotland. In the second place it has been inserted for the protection of Scotland. What do I mean by that? England has obtained the same extension for her housing and she may build very quickly. So far as I know Scotland has not been allocated the precise proportion of the £15,000,000 granted for the purpose of private subsidies to builders under the Act of 1919. True, we have the Goschen basis to argue upon, but there is no Section of any statute which provides that Scotland shall be entitled to eleven-eightieths of that £15,000,000. Accordingly this Clause makes it clear that we are entitled to eleven-eightieths of the £15,000,000, and also by implication it makes it clear that England is not entitled to obtain more than the balance of that sum. Accordingly, the Clause seems to me to be justified for the two purposes I have mentioned.

The only other thing I want to say is just a word about the White Paper, and the discussion which arose either in the Committee or on the Report stage of the Financial Resolution. The White Paper sets out that £1,140,000 is the sum we anticipate will be spent during the extended period, that is to say, during the 6 months or 18 months respectively which are dealt with in Clause 1 of the Bill. The House will observe that that sum is estimated as the sum we can spend during that period. The balance of £510,000 is already spent, or hypothecated. Thus we get our full share, namely eleven-eightieths of the £15,000,000. There is no question, as seemed to be suggested in some quarters of the House—I have read the discussions, though I was unable to be present—there is no question of surrendering or forfeiting any part of Scotland's share of this money which will be divided into two parts. We hope and expect to spend £1,140,000 in the next 6 or 18 months; the balance, as I say, of Scotland's share has already been ear- marked. Therefore the full share is secured for Scotland as for England. These are the two operative Clauses. They are quite simple. They have been already explained on the Financial Resolution, and with the further explanation which I give to the House now, I would invite the House to give the Bill a Second Reading.

I am sure the House will welcome this share of justice for Scotland, seeing that it has already been obtained for England. There are one or two questions I should like to ask my right hon. Friend. The first question is: In England, as I understand it—I am not quite sure—a review was made of the housing necessities of that country. I should like to know whether the Scottish Ministry of Health have undertaken any such task, and whether, if they have done so, they have specially directed their attention to those parts of Scotland where the need is obviously more urgent than in other parts of the country? If that has not been done, I suggest it is a course which might well be adopted at once, bringing the whole of the public authorities in Scotland responsible for this great scheme up to date, so to speak. Perhaps, also, we should be able to have this other piece of information. I heard the right hon. Gentleman say that 2,127 houses had been sanctioned—

Can my right hon. Friend tell us how many houses have been built in Scotland since the Government scheme for housing came into operation?

I do not think that will be open for discussion. The Bill seems entirely limited to this grant to the private builders of houses. Is that not so?

So that the municipal and other schemes under the general administration of the main Act are not to-day open to discussion.

With much respect I would submit that that fact would enable the House better to judge of the case the Government present to us for the further powers they ask for the building of private houses under these schemes. It is desirable that we should know the class of people affected in Scotland—who are the people who want these houses? If we had these facts before us, and we could be told what has happened under the scheme, we should then be able to judge better how far we could support the Government in this further power they are seeking. I should not elaborate the point, but I only wished to bring out the facts, not to discuss the policy; that is all I wanted to know.

May I know precisely what is the information for which my right hon. Friend asks, in order that I may obtain it? Does he want to know the number of houses constructed both under the private subsidy scheme up to date, and under the general housing scheme?

That is it, just that fact. I am not going to dwell upon it at all either by way of criticism or otherwise. The facts and figures may be found useful for discussion without going into the general policy which has already been disposed of. Then perhaps my right hon. Friend will tell us how far in bringing in this Bill have the Government borne in mind what I hope will be the case at no distant date, that there may be a very considerable fall in prices and the cost of houses, and whether he can give any ground for hoping that if that happens in the course of the next two or three months we shall be able to extend the number, bring within the ambit of the Bill a larger number of houses than is at present contemplated? Again, you cannot expect builders, owners, and others who are supplying the housing need to carry on a scheme unless some such Bill as this is brought forward, and some such extension of time is given. If any words of mine reach the private builders in Scotland, I would suggest this to them, that they lose no time in laying their plans before the Ministry. No one knows what is going to happen in the future financially. So far as that is concerned, they should make speedy application, which will put them in a much better position than if they defer the matter for another year or 18 months. I approve, as I am sure we all do—I do not know about my right hon. Friend opposite, the Member for the City of London (Sir F. Banbury)—

The right hon. Baronet always has his eye on me when I deal with subjects of this kind relating to Scotland—

Whatever may be the subject which comes under review in the way of Government expenditure, I say this with all the seriousness of which I am capable: that I do believe that the housing schemes ought to be most carefully considered before money is withdrawn from them. I do not know whether my right hon. Friend the Member for the City of London will agree with me in this. These great industrial troubles, through which we are at present passing, and the much more severe industrial troubles through which we have yet to pass, very largely arise from remediable social conditions, and I speak from personal knowledge when I say that a very large measure of social unrest in Scotland is due to the disgraceful housing conditions under which so large a portion of the population is condemned to live. I hope that anything we can do to help the Government in their housing schemes to better that state of affairs will be heartily and swiftly accomplished.

I have only one very brief question to ask regarding this proposal, because I do not suppose there is likely to be any opposition on the part of Scottish Members. So far as I understand this scheme we are now discussing, it provides simply for an extension of the time under which this subsidy for private building shall be paid, and, in the second place, it lays down a kind of limit, with particular reference to the aggregate amount of £15,000,000 which has been provided. My right hon. Friend will recall that some of us on the Scottish Committee were never very enthusiastic about this part of the housing scheme, and, if I remember rightly, we opposed it. But, having been defeated, and having, I hope, accepted our defeat, our next step is to see that Scotland gets justice so far as the £15,000,000 is concerned. It is only on that one point that I desire to ask a question. I was very much impressed by what my right hon. Friend said to the effect that, while we had been Anticipating 11/80ths, there was no Section of the Statute which indicated any kind of pro- portion in this matter. It seems to me that, while the 11/80ths is, of course, a guide in many departments of Scottish activity, it was wrong to suppose for a moment that it could be any very useful guide in this connection, because everything depends upon the relative needs of the two countries in the matter of housing, and I think it was notorious, from some points of view, that Scottish needs were very much greater than English needs in this respect. Would my right hon. Friend tell me this afternoon whether the aggregate proportion of the £15,000,000 which, presumably, is now to be allocated to Scotland, can be held to be a fair proportion, and is that proportion in keeping with the acute needs of Scottish housing as compared with English conditions? It occurs to me that a larger aggregate proportion of the £15,000,000 should be ours, and if I could be assured on that point I think it would remove the only doubt which some of us entertain regarding the proposal of the Secretary for Scotland.

With regard to the question which the hon. Member has just raised, I understood the Secretary for Scotland to state that the sum granted to Scotland was £1,650,000, being 11/80ths of £15,000,000.

I am sorry if I did not make myself clear. I said that £1,140,000 is the sum which we anticipate to spend during the extended period, that is, the next six months. In addition to that, there is £510,000 to make up 11/80ths, to which Scotland is entitled.

My point was that the right hon. Gentleman said £1,650,000 was 11/80ths, I understood that. I submit that £1,650,000 is only 11/100ths, and if we got 11/80ths we should have £2,060,000. It has been a moot point whether Scotland in the past, under the Goschen scheme, should have 11/80ths or 11/100ths.

The sum to which I have referred, £1,650,000, is, in point of fact, 11/80ths of England's share of the £15,000,000, and not 11/80ths of the £15,000,000.

I always thought in the past we were to get 11/80ths of the total grant. Now I understand it is 11/80ths of England's share. I am very glad that this Bill has been introduced. There is no doubt we do require every possible assistance for housing in Scotland. I was somewhat apprehensive that the right hon. Member for Peebles (Sir D. Maclean), who wanted to know how many houses were being built, was going to oppose this Bill, and question whether the money was wanted. I think all Members should press on the Government to give every facility and encouragement for housing in Scotland, for there is no doubt that it is not very satisfactory yet as compared with England. I think, one reason of that is that, perhaps, the Scottish Board of Health have been more careful in examining schemes, and have refused many schemes or sent them back for further consideration and reduction of price. The result of that has been that we in Scotland have spent less than our share of the total money that has been spent in Great Britain on houses. It seems to me that if we are to get a certain fixed share of the Treasury grant, there is no reason why we in Scotland should not, if necessary, further extend the period. I do not see why the Secretary for Scotland should not give to all houses an extension to June, 1923, which he is affording to houses in crofting areas. I do not wish to take it from them, but I think there is a very strong claim in Scotland to have the period extended for all houses. There is no doubt there has been considerable delay, both on account of difficulties in labour and difficulties in building supplies, and further difficulties in the delay in getting approval from the Scottish Board of Health. As I say, it may be that the Scottish Board of Health look more carefully into economy, and thus occasion delay. That is no reason why we should not have a certain extension of time for housing in Scotland.

I should very much like to know, also, whether it will be competent on this Bill to move an Amendment with regard to granting a subsidy under the Housing (Additional Powers) Act, 1919. On that Bill I moved an Amendment, which met with considerable support, suggesting that this subsidy should be granted not only for construction of houses but also for the enlargement of houses, and I submit that experience has proved that this subsidy should be granted also for the enlargement of houses. We in Scotland have a great number of old houses, very substantially built, which could very easily, by adding a room or a couple of rooms, be brought up to modern require- ments, and made useful houses, and that at a very much less price than the building of new houses. As the law stands at present, private builders cannot get a subsidy for enlarging houses. I am quite sure in Scotland we are most anxious to get the houses on any terms possible. I was looking at the speech of the Secretary for Scotland when introducing the Housing and Town Planning (Scotland) Bill. He said the shortage before the War was 236,000 houses, and I think in two years the number of houses completed in Scotland certainly does not exceed at the present moment 12,000. I am putting it at the very outside. That is the result of two years of the Housing Act in Scotland, as against the 236,000 houses said to be required by the Royal Commission, and as against the normal construction of 10,000 houses every year in Scotland previous to the War.

I admit at the present moment, perhaps, the demand for houses is not quite so great as it was, shall we say, immediately after the War, or even a year ago. Still, I do hope the Secretary for Scotland will lose no opportunity of pushing on the building of houses, either by Amendments of the Act or extensions of the period, or any other means he can suggest. I think we have been in Scotland a good deal hampered by the difficulty of building supplies, largely caused by our being dependent on the Department of Building Material; an English Department, which has control of the supply of building material throughout Great Britain. It has not worked well for Scotland, and there have been difficulties, I believe, with regard to that Department in England. I understand, and I have reason to hope and believe, that this Department is to be abolished. I am sure the right hon. Member for the City of London (Sir F. Banbury) will approve of that, as it will reduce the number of officials, and I hope the Secretary for Scotland will announce to-day whether that Department is to be permanently abolished. If not, no doubt he can assure us that Scotland is to be free from the shackles of interference from that Department. I hope the Secretary for Scotland will give us some assurance on this point, and also on the point as to whether he will consider the subsidy being extended to the enlargement of houses. I think I am right in saying that, as the Bill stands, the period for the termination of subsidies on ordinary houses is June, 1922, but I think that can be extended under the original Bill for four months if necessary.

I listened with very great interest to the hon. Member for Central Edinburgh (Mr. W. Graham) when he began to talk about justice. He said he only demanded justice, and then went on to talk about £15,000,000. From what my hon. Friend has now said, I have arrived at a clear understanding of what was meant by justice. Justice meant that we were to give a certain amount to Scotland more than they want. [HON. MEMBERS: "No!"] My hon. and gallant Friend who has just sat down said that this money would be required to provide houses during this period, and, unless I am very much mistaken, the Secretary for Scotland said there was a sum of £140,000, and then there appeared to be an odd amount of £500,000. There was some little dispute between my hon. and gallant Friend and my right hon. Friend as to whether Scotland was entitled to 11/80ths or 11/100ths, but it was quite clear, whether Scotland wants the money or not, it is going to get this sum, because it is entitled to it under some arithmetical calculation, which will put it in the same position as England, and whether Scotland wants the money or not, it has got to be found.

I must have been in fault in explaining the matter. This money is not being forced upon Scotland. The total sum is £1,165,000, and we estimate that £1,140,000 will be required during the period of the six months. There is £510,000 already ear-marked for building houses.

Then I understand I was correct. The amount required to be spent upon housing during the prolonged period is £1,140,000, and the balance is for some other building. The hon. and gallant Gentleman (Sir J. Hope) said the demand was not so great in Scotland for houses as it was, but that is the case all over the country. We were told that in this country we required 500,000 houses, but we have cut down this number by one-half. In England a large number of the houses which have already been built cannot be let because the economic rent is more than the people can afford to pay. Probably the same thing will occur in Scotland. My hon. Friend asked if he could move an Amendment to enlarge houses in Scotland. I do not think he could, because this Bill is to make provision for the extension of the time for the construction of houses, and it does not say anything about the enlargement of houses. This shows the danger of a grant of this kind. People who have houses and wish to enlarge them apply for a grant and invite the taxpayer to contribute to the enlargement of their houses. The whole system is wrong, and it is costing the country an enormous amount of money. I hope, after the experience of the election yesterday, the Government will hesitate before they come down and ask this House to extend these periods in order to spend more money upon housing.

The right hon. Baronet who has just spoken always seems to imagine that because the Treasury is geographically situated in London it is entirely an English institution. He appears to think that once the money gets into the Treasury it should remain there, and that none of it should come to Scotland.

Yes, it does, and the right hon. Gentleman in a representative sense gets the benefit of it. I hope this Bill will be carried. I always like to see the right hon. Baronet, the Member for the City of London, objecting to a Measure, because the passage of any Bill would not be complete without his objection. I hope this Bill will go through. I take an interest particularly in Clause 1, which deals with crofters and fishermen. The housing difficulty is not confined to the cities and towns. I know of scores of houses in rural parts of Scotland which are absolutely over-crowded. Tuberculosis is more rife there and it is largely due to the bad housing conditions in those areas. This plan of giving a subsidy to private builders will be a great help in those areas. I am not thinking of the professional builder at all. These crofters and fishermen can do a great deal of the building themselves in their leisure time, and consequently the expense of labour is largely done away with, and this subsidy will enable them to get the extra labour to advise them and supervise the technical part of the operation. That is the way most of these houses in the crofting area in my part of the world have been constructed.

I wish the right hon. Gentleman opposite would follow Dr. Johnson's example and take a tour in the Hebrides in order to see how well these things have been done. I welcome this extension of the time for paying this subsidy. "We have already been told that a large number of these people are engaged fishing and that it is only during certain parts of the year that they can help with the building of houses. There is also a traditional reason, which is that they are not in such a hurry as people in other parts of the country, and they do not pay such slavish attention to cloth and calico. There is also the fact that in the rural part masons, carpenters, and technical advisers are more rare than in the cities, and the crofter has therefore to wait until the carpenter or mason has finished his job some distance away. It is absolutely essential that the extension should be given which is asked for under this Bill.

With regard to the crofter areas dealt with in Clause 1, it is rather a complicated operation. The Board of Agriculture comes in as well as the Board of Health. The Board of Health distributes the grant and the Board of Agriculture provides the loans. Power has been given to the Board of Agriculture long ago to help crofters to improve their houses. That is an excellent scheme because the subsidy used to be given to crofters and fishermen only after the house was built, and in 99 cases out of 100 it is absolutely impossible for a crofter to begin building because he has not the capital to commence with, and the loan helps him, and the combined operation makes it much more simple and easy for these people to build their own houses I would like to suggest that for the same class of houses the loan granted by the Board of Agriculture, combined with the grant from the Board of Health, should at any rate be equal in value to the subsidy paid to the speculative builder, who gets something between £230 and £250. The man who builds a house for himself and takes this loan is at a financial disadvantage compared with the speculative builder who receives the subsidy I have mentioned. I consider that on the whole this is a very valuable Measure to improve the housing conditions in rural areas.

I do not desire to refer to the causes which have necessitated the intervention of the Government with regard to building which should be left to private enterprise, but I know that this has created no end of difficulties. Somehow or other the money provided for a housing scheme is looked upon in some quarters as something for nothing. I had occasion myself to beat the big drum somewhat reluctantly in order to try and raise money in different parts of Scotland for housing. Scotland is not unenthusiastic with regard to social reforms, but their ideas are always moderated by their business instincts. The experience I gained in this connection was to the effect that, whilst it was recognised that the demand for houses had to be satisfied, the greatest care ought to be taken to restrict the number as far as possible. This is sound sense for more reasons than one. The primary reason is of course a financial one. You are building at prices which represent three or four times the prices paid in pre-War times. There is this further reason that the houses put up with the aid of these public loans, if they are to be occupied by the people for whom they are intended, must be occupied at such an uneconomic rent and at such a low value as to make the position of the tenant most invidious when compared with the position of the next door neighbour who is paying in taxes a proportion of the rent of the house. That is the cause of much local discontent, and therefore I welcome the limitations embodied in this Bill. It is an indication also that this wretched subsidising from public funds of what really ought to be a private matter and this public effort to convert the homes of our country into something approaching Government barracks is being stopped, and it is a notification particularly to the building industry that the time has come when, with the experience behind us of the cost to the country of trying to repair the damage done by previous legislation, the building industry can now have an assurance that it may start in earnest whenever it likes, and is never again likely to be interfered with as it has been in times gone by. I therefore welcome this limitation.

I would only add one observation with respect to what was said by the right hon. Member for Peebles (Sir D. Maclean). I do not know whether the right hon. Gentleman was speaking of any particular constituency, but his observation was to the effect that Scotland, in the matter of housing, was in a particularly backward state as compared with other parts of the country. I do not think there is warrant for any such statement. It certainly does not apply to rural Scotland, and if in such cities as Glasgow or Edinburgh they have somewhat insanitary conditions in connection with dwelling-houses, this Parliament has been in no small measure responsible, as, but for its interference with the building industry, those insanitary dwellings now existing would have been long since removed. They have been continued much longer than would have been the case because private enterprise was killed and money was not available. I hope, therefore, the right hon. Gentleman's observations will not be taken to apply to Scotland as a whole, and certainly, outside a few mining districts, I should not like it to be applied to the constituency which I represent.

I want to draw attention to one matter which I think must have been overlooked when this Bill was drafted. But before doing so, I should like to refer to the closing observations of the last speaker. I am rather surprised he should go out of his way to controvert the statement of the right hon. Member for Peebles (Sir D. Maclean) that housing conditions in Scotland are much more serious than those in other parts of the country. If he or any other hon. Member will read the Report of the Housing Commission for Scotland, issued a year or two ago, they will find it leaves no room for doubt that housing in Scotland, unfortunately, is very much worse than it is in England. The hon. Gentleman said that housing in rural Scotland particularly was not bad. I am surprised to hear that statement, because if there is any part of Scotland in which housing is worse, it is in the rural districts. It so happens that many small cottages in country districts are some distance off the road. They are not seen, and their condition cannot be realised except by those who, for some reason or other, are able to get inside them. I am certain, therefore, if the hon. Gentleman will go into the question again he will find his statement about housing in Scotland is not in accordance with the facts.

The question which I particularly desire to draw attention to arises out of paragraph (a) of Clause 1. This particular part of the Bill deals with the question of the subsidy to smallholders, crofters, and fishermen. I desire to draw the attention of the House to the fact that there is in Scotland a class of men who are practically smallholders, and are considered smallholders by everyone outside, but who, however, are in a technical sense not smallholders and, therefore, will not get the benefit of this subsidy, as I am sure everyone will admit they ought to do. The class of men I refer to consist of ex-service men, who have been put on the land by the right hon. Gentleman in pursuance of the power conferred upon him by the Land Settlement Act. Some of us in this House did our best to prevail on the right hon. Gentleman and the Government to give these men the full rights of tenure which are given to smallholders technically so called, but the right hon. Gentleman refused to do it. He said, in effect, "We are going to put these men on the land, we are going to charge them whatever rent we may think fit, and in time, if we so decide, we may give them the full smallholder's tenure, but meantime we cannot do it. They are to be put on the land, and are to be turned out by us when we think fit." They have, therefore, not the security which smallholders have, and the result is that they do not get the advantage of the subsidy which is given to other smallholders. Is there any reason for denying to these ex-service men the full benefit of this housing subsidy which is granted to other smallholders? Their houses are going to be built on the land for them largely out of loans advanced by the Board of Agriculture. They are in that respect in exactly the same position as other smallholders, but they are not in the same position, as far as advances of money are concerned. Neither are they going to be in the same position as regards repayment, because they have to repay to the Board of Agriculture the full amount of the cost of the houses, but the other smallholders are going to get the benefit of this subsidy and will pay back the loan minus the subsidy. This is a Bill for extending the facilities to smallholders, crofters, and fishermen, but it leaves the ex-service men entirely out of account, and thereby it does them a very serious and grave injustice which I hope the right hon. Gentleman will do his best to remedy, if not in this Measure, at any rate, by some other means at the earliest possible moment.

I hope very much that this is the last of the series of Housing Bills which this House is to be asked to pass, because, in my opinion, the sooner we get back frankly and freely to the basis of private enterprise in house building, the better. Before the War in the towns of Scotland houses were provided by a class of men called builders who, on the whole, built very decent houses at very reasonable rates. They carried on their business in the same way as other businesses were carried on. In the country districts the houses were mainly provided by the large landlords, who in order to get the work on their estates carried on found it necessary to put up cottages for the labourers, charging an economic rent. Before the War, therefore, private enterprise provided the houses in the country and on the whole did it well. I want to see as soon as possible the abolition of these schemes for an extension of the payment and I want to stop the starting of new schemes so that as quickly as we may we can get back to private enterprise. In my opinion at any rate this Bill asks for a continuation of a system which is far better than the pernicious and wasteful system of building through public bodies such as county and borough councils. That is a most foolish system because it places upon those bodies a duty which they were not elected to fulfil and of which they know nothing. It causes a great waste of public money. Under this Bill the work of building will be carried out by the private individual who will find it to his interest to do it as cheaply as possible. The State will assist by a grant to meet the shortage of labour and the high cost of materials, and I venture to think that if that system had been started from the first and had been carried on solely through the Government we should have had many more houses built at a far cheaper rate than we have at present. I cordially support this Bill because it is the better of two bad systems, and I hope and trust that no further Bills will come before this House for the extension of a system pernicious in principle, seeing that this is a matter which ought to be left entirely to private enterprise.

I can not help commenting on the extremely dubious character of the support which the right hon. Gentleman's proposal is receiving from many Members on his own side. The hon. Member for Mid-Lothian (Sir J. Hope) supports the Bill on the ground that it limits the amount of assistance to be given. But the title of the Bill indicates that its object is to extend that assistance, and how the hon. Gentleman manages to support as a limiting Bill a Bill described as an extending Bill is a matter which he will perhaps explain. The hon. and gallant Member who last spoke (Colonel Ashley) will no doubt find many who will agree with him that private enterprise in this and other matters is a strong force, but certainty the housing conditions in Scotland revealed by the report of the Housing Commission call for drastic action on the part of the Government, and I hope it is not casting a slur on any constituency one may have the honour to represent to call attention to the bad housing conditions that undoubtedly exist. The only reason for describing them as bad is merely to get some measure proposed for ameliorating the conditions. I want to ask one or two questions. I understand that the bonus given to private builders who take advantage of this arrangement is a lump sum, and that it has been increased. There may be, and it is probable that there will be, a considerable fall in the price of building materials. In that case, is the builder who gets the advantage of cheaper materials to receive the same lamp sum as the builder who has built a house when he had to buy his materials at a higher price? Will the bonus paid to the private builder of houses vary on any index figure based upon the cost of materials? Then I should like to ask how soon we may expect to have the report of the Committee on the alleged ring in connection with the supply of building materials. That is a matter which deeply affects the housing question and many other questions. The subject of trusts affects the economic conditions of this country as much as many of the fiscal questions which are the subject of controversy in this House. Subject to what the right hon. Gentleman the Member for Peebles has said, I shall be happy to give what support I can to the Measure.

I am much obliged to the House for the kind welcome which has been given from all quarters to this Bill. It will, perhaps, be convenient that I should deal, on behalf of my right hon. Friend, with the questions that have been asked. With regard to the question of the hon. and gallant Member (Captain Benn) as to the Committee on the cost of building materials, I am glad to be able to tell him that the investigations of that Committee are now almost complete, and that we hope in a very short time to be able to present its Report.

That is a question which, I think, my hon. and gallant Friend should put to the Secretary for Scotland. With regard to his question as to the subsidy, the lump sum is paid irrespectively of the cost of the house. The house has to conform to certain architectural features, to a certain standard of quality of structure, and to certain bye-laws and regulations. If it is in conformity with those conditions the subsidy is granted. There is no relationship, under the present regulations, between the cost of building and the amount of the subsidy. With regard to the point raised by the hon. and gallant Member for Aberdeen (Major M. Wood), that is a Committee point, and we shall look into it before we get into Committee on the Bill. I can assure my hon. and gallant Friend that we shall consider that point with every sympathy for the position which he has placed before the House to-day. The hon. Member for Central Edinburgh (Mr. W. Graham), made some reference to the Goschen basis on which this amount is paid in Scotland, and he asked a perfectly proper question, namely, whether this basis is a fair basis having regard to the matter which we are discussing to-day. It is quite fair, and I think it will meet fully all the demands that will be made upon the Board under the Bill which we are now discussing. I cannot go further than that. I believe that up to the present time we are rather behind, as compared with England, in the proportion that we should claim, and I think my hon. Friend may rest assured that the needs of Scotland in this matter will be fairly and fully met by the proportion known as the Goschen basis.

The right hon. Gentleman the Member for Peebles (Sir D. Maclean) put some questions which had reference rather to the general housing policy of the Scottish Board of Health than to this particular Bill, but perhaps, with the leave of the House, I may give one or two figures for which the right hon. Gentleman asked. He asked if we could state the total number of houses presently under construction. The houses presently under construction, both by local authorities and under the private subsidy, were, at the end of last month, 11,449. In addition, there are 209 houses ready for occupancy, and 1,945 already occupied. That gives a total, at the end of last month, of 13,603. Of the private subsidy houses, which are all that are dealt with in this Bill, there are under construction 1,693, and already occupied 435. The right hon. Gentleman put two other questions. He asked if there was any sign of a decrease in the cost of house building. I understand that during the last few months there has been a decided drop in the average price of building the average house in Scotland—a drop of something like £200, namely, from about £1,000 to some £800. The right hon. Gentleman's other question was whether the Board of Health have carried out what might be called a second and supplementary review of housing conditions in Scotland. That is not the case. The Board is still doing its utmost to carry out the plans originally determined upon to meet, as far as possible, those housing conditions in Scotland which we on this Bench, at any rate, regard as very lamentable indeed. We are pushing forward as fast as we can with the original schemes which were entered upon, and we trust that the Measure now before the House will assist us to that end.

The hon. Member for Linlithgow (Mr. Kidd) asked for the figures of loans granted. The loans granted by the. Board, up to the 15th May, amounted to £23,601,194, and the amount authorised to be raised through local bonds is £15,325,300. The "hon. Baronet the Member for Midlothian (Sir John Hope) asked whether in Committee the Bill could be so amended as to give a subsidy for enlargement of houses. I would not venture to express any opinion on that point, because I imagine that it would be a matter for the Chairman of the Committee to decide. The right hon. Baronet (Sir F. Banbury), however, has already informed the House that it would not be in order. The hon. Baronet also raised, as he did the other evening, the question of a further extension of the period during which this money can be claimed. Parliament has granted this money subject to a limitation of time, and it is not a free grant to Scotland. The proportion that goes to Scotland goes coupled with that limitation of time. We are getting a sufficient extension of time to-day, and beyond that we cannot go unless we get further Parliamentary powers, for which I do not think we can ask at the present time. The hon. Member for the Western Isles (Dr. Murray) rather expressed the hope that the amount given by way of subsidy to the crofter, added to the amount that he receives as a loan, ought to be equal to the subsidy that is given in the general case. I think I can assure the hon. Member that there is little, if any, difference in the amount that is thus given.

What I mean is that it should be equal in money value. Supposing that they get a certain amount by way of loan and another amount by way of grant, and that the two come in the aggregate to the same amount as the free grant to a speculative builder, that is not the same financial consideration. There should be a larger proportion of loan to make the financial values equal.

I was going to add that, in addition to the loan and the subsidy, certain assistance is given by way of free transport of materials, and I am told that in many cases it amounts to a substantial sum—some £40 per house. When you put together all these means of assistance, I do not think there is much, if any, difference in what is granted to the crofter and to the builder. In asking the House to give a Second Reading to the Bill, I venture to express the hope that we may have, on the Scottish Estimates, an opportunity of dealing more fully with the general questions of housing in Scotland which have been referred to to-day, but with which I cannot deal at the present moment. I shall look forward to that further opportunity.

May I ask whether the building activities of the hon. Gentleman's Department have now terminated?

No, Sir, the work has not actually terminated, but it is tapering off, and at any rate it does not affect the houses which are dealt with under this Bill.

Is it not possible to get rid both of the officials and of all interference from them?

I wish to refer to a question of arithmetic. If Scotland is entitled to 11/80ths of England's share, instead of having £1,650,000 she ought to have £1,813,000 odd. In other words, Scotland is being done out of about £160,000 under this Bill.

I am afraid that that is rather outside the subject of the Bill. The Bill assumes that a certain amount has been given, and it provides for a certain ex-tension of time up to a certain limit, but I think the question of the proportion as between England and Scotland would hardly be relevant.

May I point out that the hon. Baronet (Sir F. Banbury) was allowed by Mr. Speaker to suggest that Scotland was getting too much out of the Treasury? Ought not the hon. and gallant Gentleman therefore to be allowed to put his point against that put by the right hon. Baronet?

I did not suggest that Scotland was getting too much, but I said that I thought she was.

A little licence was given to the obiter dicta of the right hon. Baronet, but it would not be in order to pursue an argument upon the point.

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

Bill read a Second time, and committed to a Standing Committee.

Overseas Trade (Credits and Insurance) Amendment Bill

Order for Second Reading read.

I beg to move, "That the Bill be now read a Second time."

6.0 P.M.

This is a short Bill founded on a Financial Resolution and strictly limited within the terms of the Resolution, which was fully discussed in the House. It is an extension of the original Act, but the amount authorised by the original Act is not varied nor are the time limits within which it is to operate varied. The amount of money is still limited to £26,000,000 and with regard to the period of time no new business is to be undertaken after 8th September, 1922, and all commitments are to be liquidated by 8th September, 1925, which are the precise dates prescribed in the principal Act. Clause 1 gives the Board of Trade power to proceed by way of guarantee as well as the power which already exists to proceed by way of advance. I think that is a distinct advantage both to the Government and to the commercial community. It is an advantage to the Government because where you proceed by way of advance the Government has of course actually to find the money with which the advance is made. It is an advantage to the trade because procedure by way of guaranteed Bills drawn against shipping documents enables the trader to discount the Bills through the ordinary trade channels and makes the Government less of a fifth wheel to the coach.

The second Clause empowers the Board to extend the operation of the principal Act to the British Empire. It is not proposed, at any rate at present, to extend the scheme to India or to British possessions in the Far East, because we found, after consultation with most of the banks concerned, that there was a risk, if it was extended in that direction, that credit facilities might be accorded and taken advantage of by persons who had not liquidated obligations which they had already undertaken. The only argument which was advanced at all on the Financial Resolution questioning the new proposals was the suggestion that the Department might be engaging in business which would otherwise have been undertaken by ordinary banks and financial houses. That is not the case, for all applications under the present scheme and under this extension have come, and will come, through banks, so that we shall not be undertaking business which can be undertaken by banks in the ordinary way. We have had many discussions with the banks on this subject, and no question has ever arisen—and after all they would be the first to criticise if there were any question—of our doing business which they would do. Indeed, the contention of the banks was that the Government ought to be prepared to take the whole of what is called the special risk, and it would not be reasonable to expect the banks to take any of the special risk. However, we are taking power to guarantee directly or indirectly, and it will be open to us to co-operate with a bank or a financial house or an insurance company, if they are prepared to share the risks, either in regard to a particular transaction or in regard to a series of transactions with us. Therefore, there is no question of competing in any way with the banks.

The only other question was whether it was wise to take the power to extend this within the British Empire. I think the House will agree, as it certainly was the sense of the House when the matter was discussed last March, that it is wise to take that power. There have been trade difficulties within the Empire in the past. I do not think they are entirely removed, and business within the Empire is business which is not attended with anything like the commercial risk of business with disorganised countries, and it is business which, if ordinary facilities do not exist, we should be glad to do. It is good business, and that is not mere sentiment, because it is business in what is actually and potentially the greatest market which we have got. There was a suggestion—I do not think it was very strongly pressed—that the scheme was not necessary. That certainly is not the view which has been expressed generally in the House or outside. Indeed, the criticism which has been directed, rightly I think, against the original scheme, was not that it was not exceedingly desirable, but that it was framed in rather too watertight a manner and that a method of procedure which enabled business to be done through the usual channels would be more made use of and more effective. That was impressed upon us in this House and it was pressed very strongly outside the House. Of course, at this precise moment I am not sure how much trade can be done, because of the depression in connection with the coal dispute, which has cut down all kinds of business.

Yes, but the actual possibility of conducting manufacture at present is limited by that dispute. But the opportunities will certainly be there. They are there and we shall take advantage of them and we shall be in a position, I hope, to take advantage of them increasingly as soon as the dispute is settled. We shall be faced with very keen competition and with prices with which our manufacturers will find it in many cases difficult to compete, and the existence of credit in such cases will very often, I hope, enable us to do business which we should not be able to do competing on a strictly cash basis, and business for which there is good security. We have taken the fullest consultation in order to get the scheme in what will be the most convenient form to the commercial community. There has been some delay, but I think it has been worth while, in getting the thing really hammered into form with those who are likely to take advantage of it, and I should like here and now to express the obligation of the Department to those with whom we have consulted and particularly the Chamber of Commerce, who have gone into it very fully and made the most useful suggestions and have passed a Resolution in favour of the scheme and urging their members to give it their fullest support. I feel sure it will receive also the full support of the House and I hope it will operate in an effective manner.

Everyone is aware of the advantages of a Bill of this kind. I look upon it as of immense importance. The history of our Empire is bound up altogether with oversea trade, and we all know that trade follows the flag. It is a businesslike proposition, and it seems to me a sound investment where there is no risk. I intend to support the Bill, and I should like to see the principle extended to India, where there are immense possibilities. I should like to have sent a business man there as Viceroy, and to see a business man in Canada, because we have to compete with Uncle Sam. I would not send a soldier. I entirely agree with this, and shall do my best to support it.

I also give the Bill my support. It seems to me to be a modest little Bill, which touches only the fringe of a very vast region of finance and industry. As I understand it, the original Bill was intended to help the reconstruction especially of the poorer countries, and also to help in getting orders from abroad for the industry of this country. I am glad that was passed. I welcome this little Bill, which I hope will facilitate the operations under the original Act. But the operations under the original Act so far as I have been able to ascertain, are not so numerous, and do not cover the amount of money that many would have expected. I gather that £26,000,000 was set apart for the purpose, and I should like to know to what extent that £26,000,000 has been drawn upon, and, if it has not been drawn upon to any great extent, what is the reason. Certain information has come to me recently which rather tends in the direction of suggesting that it is because of the iron rules and regulations which have limited the hon. Gentleman's discretion. Although he has full discretion under the original Act, I believe he has taken upon himself to be guided very largely by the Advisory Committee, and I suppose that is quite right. But I should like to know if it is not possible to leave a larger discretion either in the hands of the Advisory Committee or of the Board of Trade by which a good deal more can be done in the future than has been done up to the present under the original Act. As I understand the Bill, there are two objects—to give guarantees for credit and to extend it to the Empire. If there is anything that we ought to encourage in these days when competition is so keen throughout the world generally we ought to encourage trade within the Empire, and that is not altogether upon a business basis, because I well know, having gone round some of the fringe of the Empire within the last two or three years, that they are disposed to do a good deal in the way of sentiment, apart from business principles altogether, and we have benefited thereby. Therefore I cordially welcome the provisions which extend the Act to the Empire. I should like to know if it is not possible to relax somewhat the rules and Regulations which bind the hon. Gentleman or his Department. The matter that came to me recently was one in which there is an order about to be placed with someone or another for 500 locomotive engines, and being an engineer I was told of this by a person who is more or less interested in the deal, and asked how it was that this order could not be placed in this country. He told me that the guarantees were, in his opinion, sufficient to justify the Government taking a somewhat larger share in the guarantee than she was disposed to do. I do not know anything as to the truth of these statement, but I ask my hon. Friend to tell us to what extent the £26,000,000 has already been used. If it has not been used, is it not possible to relax the Rules and Regulations so that more could be done than has hitherto been done to help in the reconstruction of Europe by putting some of the poor countries on their feet, and in so doing benefit ourselves by increasing the area of employment in this country?

I rise with some doubt to criticise the provisions of this Bill, after the very excellent announcement which the Government made at the commencement of business to-day. They said they were going to repeal an Act which they brought in last year, and I feel some difficulty in opposing this Measure because at last the Government seem to be entering upon the sensible course of repealing bad Measures instead of passing more. I understood the right hon. Member for the Gorbals Division (Mr. Barnes) to convey the idea that full advantage has not been taken of the £26,000,000 authorised. The £26,000,000 was a capital sum. It was not meant that you should have £26,000,000 and should spend it all, but that you should have a capital sum, up to what amount you might incur liabilities; but that you must not go beyond it. I presume if credits to that amount have not been passed that the reason is that it is not good business to advance anything more. The right hon. Gentleman talked about advancing money to the poor countries. I have had some experience in the City of London in business, and that would be an extremely bad stroke of business. It might be all right to advance money to these poor countries, from the philanthropic point of view, but it would be bad from the business point of view, because probably if you advanced money you would never get it back. I do not think that was the intention of the House when they passed the original Bill.

I said that it might be good business even though it might be philanthropy. We might treat these countries more sympathetically than we have done, and advance money to fit them out and thereby do ourselves good.

It is easy to advance money, and it might be philanthropy to do it, but whether we should do any good to ourselves is more than doubtful. The financial position of this country is extremely bad at the present time, and we cannot afford to spend large sums of money, in fact any sums of money, in endeavouring to put somebody else on their legs. They must get on their legs in their own way. The Minister in charge said that we were not going to interfere with business, but that we might share with the banks or with other financial houses their liability. What does that mean? It means that the Government are going into business as an accepting house. We all know that accepting business is profitable, but it is very dangerous and risky unless you have very careful and very astute people in charge. Is it right that the Government should go into business as an accepting house or into any other kind of business? Two years ago when we were full of delusions as to transforming this country from something which was extremely bad into a place fit for heroes to live in, a kind of heaven which was going to descend upon a new world, it might have been possible for us to enter into this sort of arrangement, but now that we are gradually wakening up to the common-sense view that instead of making the country fit for heroes to dwell in we shall be very lucky if we can get up to anything like the standard which existed before the War, would it not be better for the Government to drop these schemes and to govern the country, and not interfere in commercial matters?

I do not object to the giving of a guarantee instead of a credit. I do not think that that is an important matter, if you are going to do this sort of thing, but I do object to the continuation of any atempt by the Government to enter into business, whether financial business or any other kind of business, because they have generally made a great mess of it. Clause 2 refers to the League of Nations:

Not to any part of the world. At the present time we can grant credits to exporters here who export to countries specified under the old Act, which we have power to extend within the limits of Section 3. That will not entitle us to extend it to the British Empire without express power in the new Act. We are now taking power to extend it to British territory and to mandated territories, but not to any other.

Then I was wrong. It only refers to the British Empire and to countries over which the League of Nations has given us a mandate. Is that right?

To territories of which His Majesty's Government and the Dominions are the mandatories, but not to territories of which a foreign Power is the mandatory.

That is, to territory which has been given to us as mandatories under the League of Nations. That is not quite as bad as I thought. I am rather glad that it knocks out the right hon. Gentleman opposite, because he wanted it to be extended to any of the poor, suffering countries.

Then it is as bad as I thought it was. I thought there was a limit to the enterprises into which my hon. Friend the senior partner in the accepting house of Lloyd-Greame and Company, with the British Government behind him, might enter. Now I gather there is not. I presume it is too late now to take any serious opposition to this Bill, because it really does not do very much more than substitute guarantees for credits, which is on the whole, perhaps, good. I hope that as soon as the period for which the Bill is in existence comes to an end we shall stop all these attempts on the part of the British Empire to set up as bankers or in any other kind of business, however desirable it may be supposed to be. We must leave all these things to private enterprise, and if private enterprise does not do it we may be certain the Governments will not be able to do it. I hope we shall have very few more instances of this kind of Bill.

The right hon. Member for the Gorbals Division (Mr. Barnes) suggested that the Government should relax the rules with regard to this scheme. I hope the Government will not relax the rules. If this scheme is to be made a success it must be run on sound lines so that as little loss as possible is made. If the rules are relaxed money will be lost and the scheme spoilt. The rules have been made and the provisions of the scheme carefully considered for several months by skilled men, and exporters acquiesced in them—they could not have done otherwise if they were prudent men—on the condition that security should be given for the money advanced by the Government and that proper fees should be paid for the accommodation. If the rules are not administered by the Department in the way laid down the scheme will not succeed in helping trade; it will fail, loss will fall upon the taxpayer, and the scheme will become useless.

There is one grave fault which I find with the administration of the scheme. The reason why it has not been used beyond the extent that the right hon. Member for the Gorbals Division assumes, and which I believe to be, the fact, is that people do not know enough about the scheme. I ask the Government Department concerned to take such steps as they think proper to inform the manufacturers who would be able to take advantage of it, that the scheme exists and can be taken advantage of if the proper safeguards are observed and if security is put up. I hope that the Bill will pass because exporters know that it will be of considerable advantage to them. They do not want the Government to help if they can go to the banks, but there is no question about it that the banks cannot do this particular business which exporters are asking the Government to step in and do. I will explain why it is—not that the banks are unwilling to do it, but that they cannot do it. It is not that they have not enough money, but it is beyond their power. As to the statement of the right hon. Baronet (Sir F. Banbury) that the Government are going into business to compete with accepting houses, that is not a fact.

Let me take the position of Bradford. The warehouses of Bradford are full of goods which cannot be moved. They cannot be turned into money, and because they cannot be turned into money Bradford cannot put on more men to produce more goods. The result is that more men are out of work than there ought to be, and they become a charge upon the taxpayer. If Bradford could sell these goods the position would be different. I can speak with authority and say that the manufacturers who hold these goods are perfectly willing to sell them at a great loss, because they want to get them off their shelves and out of the country.

They do not desire to dump them. They do not intentionally want to sell them for a less price than it would cost to manufacture them to-day. What they propose to do is to sell them at a price somewhere about that at which they could be produced at the present time. If they could sell them and get them out of the country men could be employed to produce other goods, and that would be of real value at the present time—if only reducing the drain on the country caused by unemployment doles. I may give an illustration to show hon. Members what I mean by saying the banks cannot step in to do this. It is within my knowledge that within the last few months numbers of buyers in Australia, men of perfectly sound commercial credit, men of honour, who have large balances in their banks in Australia, whose liquid possessions are not in worthless paper, as is the case with traders in the bankrupt Eastern States of Europe, but in good coin of the realm, were anxious to give orders for cutlery to Sheffield manufacturers, and if these Sheffield manufacturers had been able to collect payment that cutlery could have been sent to these men, but they were unable to remit payments to Sheffield for these goods.

There were no Australian export bills which they could use here, and the Australian Governments would not allow any gold to be exported to pay for these Sheffield goods. The bills drawn by Sheffield could not have been collected by the bankers to meet the payments due on this side. If this Act had been in operation 6 months ago so far as these orders to Sheffield are concerned people in Australia would through their bankers in London have put up documentary security for payment of these goods which they were buying from Sheffield, and bills, against the shipping documents, with the endorsement of the British Government could have been melted so as to enable the Australian buyer to pay for these goods until Australian exports in a few months provided the final liquidation. That is the case which meets the objection of the right hon. Baronet the Member for the City of London. I had a bill of exchange put into my hands a few days ago for goods which were sent to Iceland. More goods could have gone to the perfectly solvent firm there, but the bankers wrote back to say that they could not collect the money because there was no exchange. Such bills would be met in due course, but men in this country cannot in the meantime go on selling goods if they cannot raise the money to pay their workmen. The consequence is that this scheme which enables manufacturers to get their accounts paid will put them in a position which the temporary clogging of exchanges does not permit at the present moment.

I welcome the extension of this Bill to the British Colonies purely on business lines. I put aside sentiment for the moment. I would rather trade with Australia than with the bankrupt east end of Europe where we have less means of getting good cover as security for the bills, and where trade is thus less desirable than business with Australia where buyers are wealthy and are merely unable to pay for physical reasons—the difficulty in finding remittances of suitable type. The hon. Gentleman who introduced this Bill mentioned that he would not extend it to India and the Ear East at present. I entirely agree and for this reason. There are many broken contracts made by Indian buyers on bills. The current rate of exchange has gone against these firms, and I think it would not be sound policy to allow business under this Bill to take place with India until these broken contracts are taken up and these old bills are liquidated, but, on the other hand, I do not agree with my hon. Friend who represents the Board of Trade in extending that statement to the Far East—say, China.

I was careful to say British possessions in the Far East. I think that the situation extends outside India, but China is not within the scope of the Bill.

I did not know whether the hon. Gentleman meant to extend the restriction to the Malay States. If he did, I should put in a caveat about that. I am not sure that he is right there. I have not considered the matter, but, speaking on the spur of the moment, I do not think that he is. I assume that if he did not intend India to come in later he would have specifically excluded India from the Bill, and I would be glad to know what is the point at which he thinks the Bill should be operative for India later on. I like the Bill and so do those who hope to have the good fortune to be able to take advantage of it. I hope that the Bill will go through. So well do I think of it that I leave off as I started by asking the hon. Gentleman to take steps through his Department to make its operations better known to the manufacturers and exporters all over the country.

It gives me great pleasure also to find myself for once in complete accord with the policy of His Majesty's Government. This is a Bill which I can support without any misgivings or qualification. It is quite true that it is a small matter. It merely extends, as I understand it, the power of guarantee already granted by the first Act. I do not quite agree with my hon. Friend (Mr. A. M. Samuel) in one sentence in which he stated that he was very glad that this Bill was going to extend these powers to our Dominions and not only to the Eastern Europe for the reason that he would rather do trading with the Dominions than with Eastern Europe.

It was not a matter of sentiment. My point was that on purely business lines it was much more satisfactory to trade with our own Dominions.

I am speaking purely on business grounds. It is on these grounds that I venture with great trepidation to express my doubt as to whether the hon. Gentleman is right. It is quite true that everybody naturally would much rather deal with their fellow countrymen in other parts of the Empire than with anybody else. That is really sentimental. But as a matter of business I believe it to be far more important for this country that Europe should be properly reconstructed than that any other single thing should happen in the commercial world. That is where I venture with great respect to disagree entirely with my right hon. Friend (Sir F. Banbury) It is not that I have any particularly sentimental feeling in favour of the inhabitants of Central Europe. Quite the contrary. I know a great deal about them. I need say no more. But I am certain that the unemployment in this country is due mainly to the complete breakdown of the European market, and until you can get Europe on its feet again you will not really deal with the industrial crisis in this country with any permanence. This is a very small step towards dealing with the reconstruction of Europe, but it is a step in that direction, and I hope that the Government are not going to allow the policy of the previous Act to be diverted into a policy of encouraging trade within the Empire. That is a very desirable thing, but it is not the policy of the original Act. I very gladly endorse any step taken to encourage trade within the Empire, but still the most essential thing is to try to get out of the terrible industrial chaos in Europe, and I should be very sorry to see any diversion of energy in other directions. My right hon. Friend referred to a phrase in the Bill which mentions the League of Nations. Anything referring to the League of Nations appears to fill him with profound misgiving.

The right hon. Gentleman is one of those who are quite prepared to avow their opinions whatever they may be. Personally, I should be very glad to have some opportunity of discussing the subject openly and freely in this House to find out how many Members really agree with him. He suggested that the League of Nations would not give a mandate for any territory of any value. The League of Nations does not give a mandate and has not given a mandate for any territory at all. That was what the Great Powers at Paris settled among themselves should be done in this matter, and they gave us what we asked for. Whether we were wise to ask for it is an entirely different matter. In some respects I should think we were not, but that has nothing whatever to do with the League of Nations in that sense.

My attention has been drawn to this phrase, and I would ask my hon. Friend on the Treasury Bench whether he is prepared, as a matter of drafting, to say:

"His Majesty's Dominions, including territories over which the mandate of the League of Nations has been granted."

I should prefer somewhat different words. Strictly speaking, it is not right to say that Palestine is part of His Majesty's Dominions over which a mandate has been granted. However, that is a small matter which will be corrected if it is worth while by a slightly different phrasing. I am strongly in favour of this Bill. It is not the wish of the Government to go into business, and the Government are not going into business at all. All that they are going to do is to facilitate private tradesmen in going into business. That is a very small matter. For reasons which have been given so well by my hon. Friend (Mr. A. M. Samuel) we have reached a position in which private credit is often in great difficulty in opening up business to any of those countries, and the Government can enable it to do so. The Government are going to get full security, but I desire that the Government should not be too pedantic, because of the great object which has been embodied in the past Act and the attainment of which this Bill does something to facilitate.

I find myself for once in an agreement with the right hon. Gentleman the Member for the City of London (Sir F. Banbury) and in disagreement with the Noble Lord the Member for Hitchin (Lord R. Cecil) on this very matter of the mandates. I would draw their attention to a certain aspect of this case. We are told here that this scheme is really a scheme for subsidising British merchants abroad, into the merits of which I will not enter for a moment; but if hon. Members will take Clause 2 they will find reference to

"any territory in respect of which a mandate of the League of Nations is exercised by the Government of any part of His Majesty's Dominions."

That means that we are going to encourage by a guarantee, which may mean money to a very great extent, British merchants to trade with these mandatory territories. I hold in my hand the last Treaty of so-called peace which was brought before this House by the Government—the Treaty of Peace with Hungary. That Treaty incorporates the Covenant of the League of Nations. Article 22 of the Covenant, after reference to mandates, the slave trade, arms traffic, and liquor traffic, says that the power exercising the mandate "will also secure, equal opportunities for the trade and commerce of other Members of the League." As a matter of pure ethics it may be said that we have entered into a solemn Covenant not to give preferential treatment to our nationals in the matter of trade and commerce in mandated territories. I submit that if you are not prepared to subsidise or encourage or guarantee the French and the Italians and other merchants as well as our own, we are acting contrary to the spirit of the mandate.

That has occurred to me. Their Governments can do the same, but it must be remembered that we shall be in a particular position in these mandatory areas to point out to our own nationals the openings for trade. We shall have our officials on the spot, we shall have our troops there, and so on, and anyone wishing to make trouble might point to us and declare that we were giving an undue preference. When this Bill goes to Committee—I hope it will remain in this House, because of its importance—I propose to move an Amendment to leave out mandatory territories because the mandatory territories we have so far are a tremendous burden and I am convinced that very shortly we shall be forced to clear out of those places because we cannot afford to stay there. I do not want to see any more commercial entanglements that can be avoided. Ordinary trade, as before the War, is all very well, but to subsidise trade in Mesopotamia or elsewhere I consider to be extremely mischievous. Apart from the purely ethical point of view, with reference to the Covenant of the League of Nations, I do not think it a good policy to extend this scheme to mandated areas. With regard to the British Empire, I agree with the right hon. Member for Gorbals (Mr. Barnes) and I shall support that part of the Bill.

On the broader aspect of the Bill there are one or two comments that should be made. Hon. Members have talked rather slightingly of the bankrupt east end of Europe, just as a few years ago rather snobbish people in the west end of London talked about the east end of London. They do not do that now, because the east end of London is rich and the poor people are in the north. It is said, why should we bother about the bankrupt east end of Europe? Why is it bankrupt? With regard to some of the countries, say Austria and Hungary, the cause is directly due to the policy of the Government. The ruin of Hungary and the adjacent countries is directly due to the policy pursued by the Government. Yesterday and the day before the House spent two days in discussing a scheme for preventing the entry of goods into this country. We are now discussing a scheme to enable goods to go out of this country. I wonder whether it has ever dawned upon hon. Members that these two things are not compatible, and that the Bill which the House discussed yesterday and the day before is directly opposed to this Bill? If other countries cannot send their goods in here, they cannot afford to buy our goods. I do not wonder that the hon. Member for Farnham (Mr. A. M. Samuel) voted with the Government last night if he thinks he will be indemnified from any ill effects of that Resolution.

The hon. Member talks about the goods that will come from the east end of Europe. They will not be manufactured goods. The Bill yesterday dealt with manufactured goods. The goods that will come in here from the east end of Europe will be raw materials and grain.

We used to do a big trade in manufactured goods with those countries. Bohemia supplied us with glassware, Austria with gloves and fabrics, and so forth, and those countries took our textiles and our woollen goods. I do not want to go into that controversy. The question was inadequately discussed during our two days' debate. As the hon. Member said, our warehouses are choked with goods and manufacturers cannot see their way to dispose of them. Particularly is that the case with textile articles. There is to-day a lock-out of 500,000 people in the textile trade. If orders had been pouring into Lancashire the employers would have taken good care that no rupture took place with their workpeople, and those workpeople would not now be drawing unemployment pay. While all this is going on you have millions of people in the so-called bankrupt east end of Europe literally naked or in rags. You have people without boots, without the necessary agricultural machinery and drills and transport, and every other sort of manufactured goods, and all our factories in this country are stopped. I could suggest a remedy for this, a much bigger scheme of Government credits than this little Bill. This Bill is utterly inadequate, in view of the size and complexity of the problem, and if the present policy of the Government is pursued, of encouraging disruption, the marching of armies and further warfare in Europe, this Bill with its £26,000,000, or a dozen Bills like it, will not solve the problem. The situation has got worse since the Armistice. We are suffering in this country from the loss of the important Turkey markets. They are lost to us because of the continued hostilities between Greeks and Turks. I asked the Government last week whether they were doing anything about the situation there—

Notice taken that forty Members were not present; House counted, and forty Members being present

I asked whether anything has been done to bring peace in those regions and the answer I got was, "No; the Government were doing absolutely nothing." In popular phraseology we are letting them fight it out. If we are to let them do that and in many cases, as I am sorry to see, encourage one side against the other, we may bring in Bills like this until further orders, but we shall have more and more unemployment and more and more distress, and it will end only in bankruptcy and ruin. The best comment I can make at the moment is to draw attention to the empty state of this House when a matter which concerns every person in the country is being discussed. For once the Treasury Bench is comparatively well filled, but supporters of the Government are conspicuous by their absence. Until we get a different spirit we shall drift, the Government will drift, and the end will be disaster.

I do not think it can be contended for a moment that the provisions of the Covenant are contrary to the provisions of this Bill. There is no question of granting undue preference. All we are doing is to say that we shall not exclude the mandated territories from the facilities that we are giving to our own nationals. It is open to every other country to give to its nationals for trade in those areas exactly the same credits and guarantees that we are prepared to give to our nationals. Whether the construction placed by the last speaker on Article 22 of the Covenant is correct, I do not say, but allowing the widest possible construction, the provisions of this Bill could not conceivably be construed as any breach of the provision relating to mandated territories. It is too late to discuss at this stage whether the policy to which effect is given by the principal Act was a right policy or not The purpose of this Bill is not to continue that Act. That Act continues in force. When we are asked whether it is right that we should do this kind of business, surely a very narrow view of the position is taken. Assuming that some liability is to be undertaken and that there is some risk accruing to the Government, what we should do is to take a real balance-sheet and strike a balance. There are surely two aspects of the question, one the chance of building up these countries of Europe which have to be built up, and the other the solution of unemployment in this country. When you take those two great assets on the credit side of the balance-sheet I do not think the House will regret its decision to pass the previous Act.

7.0 P.M.

I can assure my Noble Friend (Lord R. Cecil) that there is no intention, by including the British Empire, of excluding any of those countries which were scheduled in the previous Act. The best guarantee I can give him of that is that we have added certain other countries to the list since that Act was passed. I sincerely hope that business will be done both with the one and the other. There are, at the present time, considerable schemes under consideration by the Department from those areas. The hon. Member for Gorbals (Mr. Barnes) suggested that perhaps the conditions which had been enforced were too hard. The conditions which will govern this scheme have been very fully discussed with the Chambers of Commerce, and the hon. Member for Farnham (Mr. A. M. Samuel) has said that after full consideration the business community have accepted those conditions as reasonable. I think they are reasonable. If the security is valid, we take the risk, but where there is no security, or where it is insufficient to cover the amount of the Government guarantee, then we propose to retain recourse against the exporter for one-half of the uncovered risk. I do not think anybody can suggest that that is an unreasonable proposition. The Government is here to help in this matter. It is not here to take the whole of the responsibility in this trade. It is unreasonable that it should do so, and if the manufacturers want to get their trade going in those countries they must take some part of the risk. It is not reasonable to come to the Government with a large proposition incompletely secured and say, "You ought to guarantee us up to 85 per cent. If you do that you will take the risk, and the only thing we shall be risking is our profit."

I am sure it is the intention of the Department to foster this business and to make the fullest possible use of the scheme. The House will remember, when it passed the original Act, that it included a provision that advances made by the Government should be made by the Department after consultation with the Advisory Committee. That Advisory Committee is a very strong committee which contains distinguished Members of this House and distinguished members of the City. I am quite sure that that Committee—upon which, after all, I am bound to rely, and upon which I desire to rely—wishes to take a very broad view of this matter. It realises that it was the intention of the House, in passing the original Act, as it is their intention in giving assent to this Measure of extension, that business should be done which would not be done otherwise by banking undertakings in the ordinary course, and which is attended by certain exchange and political risks which the banks are not prepared to undertake. The Committee is fully alive to this, and is prepared to advise the Department to approve of business, in which there are those risks, which cannot be done through the ordinary channels. When that business is submitted to them, however, they are bound to examine and scrutinise it to see whether it is sound business, and what is the nature of the risk which the people are going to take. That is perfectly reasonable, and I am sure business can be done satisfactorily on that basis.

Would the hon. Gentleman reply to the question I put to him, as to the amount of business that has actually been done under the scheme so far? I take it that that is a fair measure of the success of this scheme, and also of the manner in which discretion has been exercised.

The amount of business which has been sanctioned is, roughly £2,500,000, and the amount of advances actually made £826,000. That is, I agree, a small amount of business, but I do not think it can be asserted that the Department or the Committee have been unreasonable in the way they have treated this matter. Business has not been done on a more extensive scale partly because the manufacturers do not know enough of this, and it was started at a time when goods were more easy to sell than they are now; and partly also because the machinery of making advances is less elastic and does not move so quickly as procedure by guarantee. It is not fair altogether to suggest that the fact that advantage was no more fully taken of it because of our scrutinising whether the transaction was a good one or not. I do not think it proves that we have been unreasonable in that respect. Certaintly, if people will share in the risk, a good deal of business can be done under the terms which have been settled in close association with the Associated Chambers of Commerce.

Another question put to me was when, if ever, we were going to extend this to India. We ought certainly not to extend this to India until those conditions which I have described cease to operate. The position is clear in that respect. Then it will remain to be seen whether or not the need for it is there; whether there is business which ought to be done and which the banks are not prepared to do. In that case, the scheme might certainly operate there. If the banks are prepared to do the whole of the business, however, there is no need to extend the scheme. I agree with the hon. Member for Farnham that more business will be done if the conditions are better known, and I would appeal to him and the great organisations with which he is connected to assist us. I think these conditions will be far better brought home to the commercial community in this country if the Chambers of Commerce will give wide publicity to them throughout the country.

Has the Department over which the hon. Gentleman presides issued a White Paper or any sort of document which can be circulated?

As the hon. Gentleman knows, I waited to bring my scheme into operation until I had secured the Financial Resolution in this House authorising it. I have in print at the present moment the new conditions which will be available, and I shall be only too pleased if Chambers of Commerce and other organisations will circulate them as widely as possible to their members.

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

Bill read a Second lime, and committed to a Standing Committee.

Ways and Means

Considered in Committee.

[Sir E. CORNWALL in the Chair.]

Audit Stamp Duty

Motion made, and Question proposed,

"That the stamp duty chargeable on local authorities in respect of the audit of their accounts by district auditors shall, instead of being charged according to the existing scale be charged according to a scale which shall be fixed by the Treasury after consultation with the Minister of Health, and shall be such as to secure that the duties levied shall be sufficient to meet the costs incurred in respect of the remuneration, including superannuation allowances and the expenses of district auditors."—[ Mr. Hilton Young. ]

This is a Ways and Means Resolution of a formal nature which is similar in character to those dealing with other matters taken in the Ways and Means Committee in connection with the Budget. It leads to a Clause which will appear, but is not yet present, in the Finance Bill. It is, none the less, familiar to the Committee, because it has been published and made available for the information of Members as a Clause in the Revenue Bill which was recently withdrawn. It is that circumstance, which explains why this formal Resolution has been taken at this time, and why it was not present amongst those which we took in a previous Ways and Means Committee at the time of the Budget. When the Revenue Bill was withdrawn, certain Clauses were preserved and inserted in the Finance Bill, this one amongst them. For that reason it was not possible to take the Ways and Means stage of this Resolution at an earlier time. I need not point out to the Committee that there will be a full opportunity for discussing the Clause on its merits in Committee on the Finance Bill, and on the Report stage of that Measure. The Committee, however, will no doubt desire that I should explain the general character and effect of the Clause. Its purpose is to deal with the rate of stamp duty that is charged to the local authority as a payment for the services rendered to them by the district auditors, who are servants of the State. It is for that reason that a Ways and Means Resolution is necessary, because it deals with a duty imposing a charge, though it is a charge on the local authority and not on the individual taxpayer. The rate at which stamp duties are charged for this service was fixed so far back as 1879 by the District Auditors Act of that year. In the Schedule of that Act the scale was laid down under which the local authorities who had to make use of the services of district auditors for their audits paid a stamp duty, varying from a minimum rate of 5s. when the expenditure audited was less than £20 a year, up to £50 when the expenditure audited was over £100,000 a year. There was an addition to that legislation by the Local Government Act of 1888, which dealt with the county councils. This also indicated a scale by means of schedules to the Act, and the effect of the scale was to impose a higher rate of stamp duty in respect of the services of these auditors where the expenditure audited was over £150,000 a year. But the Committee should observe that this new scale on the higher basis of expenditure applied only to the county councils dealt with by the Act of 1888, and not to local authorities, which were subject to the scale laid down by the earlier Act of 1879. In the course of time many of the older authorities have, owing to the march of events, very much increased their expenditure and yet the maximum stamp duty which they can be called upon to pay is still the old figure of £50. It follows, owing to that slight imperfection in the scheme of legislation, that the older authorities escape very lightly indeed in respect of the payment for these services.

As the Committee is no doubt aware, the cost of auditing has unfortunately very much increased as time has gone on, and particularly during the War. It has increased so much that it has the following result: that whereas at the time the scale of 1879 was fixed the burden falling upon the Exchequer was only 16 per cent. of the total cost of the services, the burden that now falls upon the Exchequer is no less than 50 per cent. or a little more. The figures show that the total cost of working the audit is £190,000 and that the stamp duty only produces £90,000. It will be revealed clearly by the situation, as I have just described it, that this is a matter in very urgent need of being remedied by bringing the scale and the financial arrangements regarding it up to date. That is what the Clause in the Finance Bill, to which this Resolution refers, proposes to do. It proposes to give the Treasury power to fix, in consultation with the Ministry of Health, a new scale and it lays down what I believe the Committee will agree is a sound financial principle, namely, that the scales have been so fixed that the services shall be self-supporting and the stamp duty cover the whole cost. If it is asked why this should be taken as a power by the Treasury, and why should not a new scale be fixed, I think the reason will probably appeal to the Committee. It is because at the present time, when costs and prices are varying so much, it would be impossible to fix a definite scale which could be expected to hold good—in accordance with the financial principles which I have described—for more than a limited time. Inevitably we should have to return to the House, probably at no distant date, for fresh legislation on the subject. It has appeared to be the more practical course that power should be taken to make the scale, subject to those limitations, such as will enable the services to pay their own cost and with a view to its being altered from time to time, in accordance with, changes in the cost of the services. There is only one other circumstance to explain in order to make this Resolution clear to the Committee. It does not refer to Ireland for the very obvious reason that the Government of Ireland Act has now removed or will at some approximate future time remove, all such subjects from the immediate sight and business of this Chamber, and it does not apply to Scotland for the reason that in that region of sturdy self-dependence the local authorities have themselves borne the total cost of their own audit services. With this explanation, which I trust has made the matter clear, and again reminding the Committee that there will be an opportunity for further discussion, I commend this Resolution to hon. Members' acceptance.

The hon. and gallant Gentleman has made clear to me a question which I had some difficulty in understanding before, and I am sure the Committee are much obliged to him for his statement. I see, however, accord- ing to this Resolution, that the scale of salaries for these district auditors is in future to be fixed by the Treasury in consultation with the Ministry of Health. That seems to be proceeding on lines which have led us into great trouble during the last year. We have had salaries fixed by Departments without reference to this House and a great deal of trouble has been caused by that. Is there not another means by which this matter could be arranged?

I think the hon. Member is under a misunderstanding. This Resolution does not refer to the fixing of any salary, but only to the fixing of the rate of stamp duty which is to be paid by the local authority. That rate is to be fixed by the Treasury in consultation with the Ministry of Health. But there is no question of salary either in the Clause or the Resolution.

I agree I was confusing two parts of the Resolution, but my point is a good one and applies equally to the fixing of the scale. Is there not any means whereby the House can be consulted as to this new scale before it is actually adopted? The hon. and gallant Gentleman wishes to empower the Treasury, after consulting the Ministry of Health, to set up a new scale of charges, and any scale of charges of that kind before it becomes operative should be submitted to this House. We have had all kinds of trouble as a result of Departments of the Government undertaking to control matters of finance without any reference to this House. That has led to enormous waste, and it has been necessary over and over again to ask this House to approve of expenditure already made, and when it is too late for the House to intervene. He should give us some assurance, or at any rate hold out some hope, that the House will be consulted before any scale of this kind is finally adopted. It is the only way in which the House can carry out its proper function of controlling finance. If the House insisted that no money of any kind should be expended without reference to it, it would have avoided much waste which has taken place, and I hope the hon. and gallant Gentleman will be able to give us some such assurance as I have asked for.

I should not like the hon. and gallant Member to think I am in any way taking up an antagonistic attitude to his suggestion, but let me point out that he has enforced his argument rather by reference to what has taken place in regard to salaries than by reference to this particular scale. It, as a matter of fact, is on an entirely different footing, because if this Clause passes in the Bill the House will be laying down a hard and fast rule, that the scale must be such as shall enable the services to be conducted in a self-supporting manner. I may also point out that the fixing of the scale is purely a Ministerial matter which can be done by consideration of figures and leaves very little scope either to the Treasury or the Ministry of Health to make any departures in finance. It is a matter which undoubtedly deserves the most careful consideration and I can give my hon. Friend this assurance that it will receive that very careful consideration both by myself and my right hon. Friend before the Clause comes up in the Finance Bill.

Question put, and agreed to.

Resolution to be reported to-morrow.

Committee to sit again to-morrow.

Supply [24th May] Report

Navy Estimates, 1921–22

Order read for resuming Adjourned Debate on Amendment on consideration of First Resolution [

"That a sum, not exceeding £5,836,600, be granted to His Majesty, to defray the Expense of Works, Buildings, and Repairs, at Home and Abroad, including the cost of Superintendence, Purchase of Sites, Grants in Aid, and other Charges connected therewith, which will come in course of payment during the year ending on the 31st day of March, 1922," read a Second time:—

Which Amendment was, to leave out "£5,836,600," and to insert instead thereof "£5,036,000."—[ Lieut.-Commander Kenworthy. ]

Question again proposed, "That '£5,836,600' stand part of the said Resolution."

Am I to have any reply to the point I raised during the previous Debate upon this matter?

In making a short reply to the points raised previously on the Report stage, I should like this to be realised, that we have had a very full discussion in Committee already. The hon. and gallant Gentleman raised three questions. He returned to the attack in regard to the Wei-hai-wei proposal and objected to a sum of money being spent there. He made his objection on strategic grounds. I am not asking for any money for Wei-hai-wei on strategic grounds. I do not know whether the hon. and gallant Gentleman has ever visited that place.

I assisted in the hoisting of the flag there, and it was not much of a health resort in those days. But now it is the health resort of the British Navy in the East, and the place which they use during the hot weather. The sum of £8,000, which the hon. and gallant Gentleman mentioned, is not the sum I am asking for this year It is the sum which has already been voted for the work necessary and is what we call a continuation service. This year I am only asking for £1,700. As I explained to the Committee previously, this is for houses which were pulled down during the War, and if we are going to keep this place as a health resort, which is the policy of the Board of Admiralty and of the Government, we must have those houses there, and we only want the money this year to complete that work. It would not be economic, having spent so much money already, not to proceed with the work.

I think the only other point the hon. and gallant Gentleman mentioned was the question of the expenses at Bermuda. I should like to ask him if he does not agree with me that everybody rejoices that the British Navy is freed once more from concentration in the North Sea. That concentration at the time was absolutely necessary, but I am sure it did a great deal of harm to our prestige and to our trade throughout the world, and now once more the world at large is free to see our flag and to realise the protection which that flag has always signified, but if we are going to have ships abroad, we must have places for their repair, and the truth of the matter about Bermuda is that the class of ship at that station has altered. The last time Bermuda was used we only had five light cruisers, now obsolete, and we only did running repairs. Refits were carried out at home. Now we have got five modern light cruisers at Bermuda, and refits are carried out there. There is there a most ramshackle collection of machinery for power and for lighting. There are a lot of old steam engines and some electric engines, and this results in a large waste of power, which means a waste of coal and water, items of great importance in Bermuda. As the House knows, we have closed down Invergordon, where there was a very up-to-date electric plant, and we are proposing to instal that at Bermuda. I hope the House will now give us the Report stage of this Vote.

Question, "That £5,836,600 stand part of the said Resolution," put, and agreed to.

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

I moved the reduction on the 24th of May of this sum and made a few explanatory remarks in doing so. I do not know what has happened to the Anti-Waste party, which has been so signally reinforced by the recent by-election, but I suppose they are celebrating the victory, and there are none of them here to support me, nor are there any of my own party. I did move to reduce the sum by 14 per cent. on the whole amount, and considering that this whole Vote is for buildings and works, I am convinced that a saving of 14 per cent. could be made. The House has had the benefit of a full explanation from the hon. and gallant Gentleman, for which I thank him, as to why this sum is required for Bermuda, and if he had been speaking in 1912 or 1914, every word would have been unquestionably appropriate, but now we are in a state of deep indebtedness, and the hon. and gallant Gentleman talks as if it was desirable to put this new machinery into Bermuda, to refurbish up the dockyard, to provide for the needs of these five modern cruisers, whereas previously we only had a few old ramshackle cruisers. In 1921, apparently, everything is to be of the best in these outlying stations. We are able to disperse our Fleet in the North Sea, and that apparently is to be an excuse for expenditure on oiling and coaling stations and repair stations all over the world—at Weihaiwei in the East, Bermuda in the West, the Falkland Islands in the South, and I suppose some fjord in Canada in the North.

It is perfectly useless the Treasury sending these comic letters to the Admiralty demanding that they should make a reduction of 20 per cent., if they totally refuse to listen to the House of Commons when one or two of us here suggest a reduction of 14 per cent., and when they reply in answer to our Motion for a reduction that this expenditure, though not essential, is desirable. That is absolutely the wrong spirit. Instead of confining their expenditure to what is absolutely essential, they seem to have looked round and said, "Here is Bermuda, a quiet time, nothing much doing; we will put in the Invergordon machinery there." If that is the spirit of the Admiralty, we shall never get economy, and unless the Board has the strength to say that money shall be spent only on absolute essentials and not on health resorts, they will not be able to make reductions. The other night I endeavoured to bring the Debate to a close by sitting down well before the time, as I was told the money was wanted immediately, and I regret that other hon. Members carried the Debate on. In those circumstances I did not refer to other items on the Vote, but if hon. Members will look through this Vote 10, they will see all over the world these heavy items on buildings, on bricks and mortar, and this year in many cases the amount asked for is only a Vote on account. Undoubtedly, some of this total Vote is absolutely necessary, but some of us are convinced that a saving could be effected on many items, and we are not in a position now to move a reduction. I think it is time the House of Commons adopted an entirely different procedure in dealing with these Votes. The present system of Committee on the Navy Estimates, in which a variety of topics may be raised, with a Report stage on the same Vote perhaps late at night, cannot, so far as I can see, ever be satisfactory. We have got an Estimates Committee now and I hope it will be successful, but it is useless the country showing this House its determination to have economy if hon. Members allow the procedure to get the better of them. You have only to say, "Navy," and always a few hundred Members will vote for anything, but a bankrupt nation will not be able to keep up even a third-rate Navy, and it is with the hope of trying to avoid that fate that I venture to address these few remarks to the House.

My hon. and gallant Friend opened his remarks by lamenting the absence of anybody in the House who belonged to his party. I was under the impression that I belonged to the party to which he belongs, but I am often aware that he belongs to my party—

I will just take advantage of the presence of the Parliamentary Secretary to the Admiralty to make one comment only, and I would preface it by saying this about the Navy, as distinguished from the other fighting Services. I have said it before, and I repeat it, that I think, of all the fighting Services, the Navy has shown the nearest approach to a realisation of the financial position of the country and the need of economy. I very gladly recognise that. It is evident in the Estimates that they have made a genuine attempt, and in some respect a successful attempt, to effect economy. They have also, in the form in which they have presented their accounts, effected a real improvement as far as the convenience of the Members of this House is concerned. When those Estimates were framed, in the spirit in which they were framed, I do not deny that those who were responsible for them might have thought they were fully justified in the sums which they asked this House to grant them, in view of what they deemed to be the then financial position; but what I want to urge upon the Government is that the financial position of the country today is incomparably worse than it was six months ago, and that it is going to be worse still. This is what I suggest, and I should like to have a reply from my hon. and gallant Friend opposite. In view of that fact, is it not possible in this year's Estimates, not next year's, to effect some drastic savings on the Votes which are even now before the House? My hon. and gallant Friend has intimated that many of these items are desirable, but the financial position of the country in regard to its fighting forces, as well as to its civil establishments, is such that any grant of money should be cut down to the vitally necessary and not to the merely desirable. That is a position which we ought to take up here and now, and what I said to the Chancellor of the Exchequer the other day, when he was talking about a reduction of expenditure, namely, "Why not this year?" still holds good. I feel quite confident that the determination of the people of this country, if they could only enforce it on this House, would be not to wait for next year, but to do it now, and I am as certain as I can be that if the Government were fully seized of that, and took many risks, which they are entitled to take and ought to take, we should save many, many millions this year without the country being one whit the worse for it in its vitals, in so far as defence is concerned. This is not the first time my voice has been heard in this House on these Financial Estimates. It has been the same for two and a half years. What was feared and foreshadowed is now an accomplished fact. The Government cannot raise their money this year; the Budget Estimates lie shattered completely. Why not in these Estimates, which are still in the hands of my hon. and gallant Friend, take a lead? I appeal to him with hope, because I repeat that I have noticed in the Navy a realisation of the need for economy. He has got the right men around him—certainly imbued with the spirit of saving. Let him set a worthy lead to the other Government Departments.

I really would like to draw attention to two or three curious things. First of all, consider the state of the House at the present time, when money is being voted. The most extraordinary thing is that here we are on the Report Stage of Estimates running into millions of pounds, and we have only this very small number of Members present. I am glad to see the Front Bench particularly well represented on the present occasion among the small number present. It is a very great pity indeed that so few are present. I am entirely with the right hon. Gentleman who has just spoken on the question of economy, and I am with him, also, when he said that the Admiralty show a real and evident desire to economise. I think they do. I am not, indeed, at all sure if the strategic position of the Navy is examined whether we would not find that the Admiralty have gone a dangerously long way in the reductions already made. Only the other day—and perhaps this may be out of Order—a list of ships proposed to be immediately dispensed with was published in the Press. That list included a very large number of destroyers. We all know what we owed to destroyers in the late War, and how irreplaceable they were in the early stages. I am not at all sure that the reductions that have been carried out have not been carried out too far. I am also of opinion that we in this House can do a very great deal to help the Admiralty in the scheme of cutting down in their policy of bricks and mortar. I agree with the hon. Gentleman below me (Lieut.-Commander Kenworthy) when he said that you should economise as far as you can on bricks and mortar. I do urge upon the right hon. Gentleman who represents the Admiralty to adopt this course. I trust, when he comes to reply, he will assure the House that the reductions have not been carried too far—in the first place so far as the fighting ships are concerned, and, secondly, that every possible reduction is being made in bricks and mortar.

Only last year, by an accident, the hon. and gallant Gentleman the member for Central Hull (Lieut.-Commander Kenworthy) discovered that an expenditure of money was anticipated on the submarine base at Inverkeithing. That was a most valuable discovery, for the expenditure was stopped. We have one of the finest Boards of Admiralty—one in which the country has absolute confidence. I, however, only want to be assured that the policy of reduction, so far as the fighting ships are concerned, has not been carried too far, and that the Committee of Imperial Defence are studying the question, and when we hear—

The hon. and gallant Gentleman cannot raise the question of battleships on this Vote. He may put it that the money now being spent under this Vote on buildings might better be spent on battleships, but he cannot go into the general question of the number and sufficiency of our battleships.

I bow to your ruling, Mr. Speaker. My only anxiety is to see that every possible economy is made in pursuing our policy of bricks and mortar. So far as I or any other Member of this House can do anything to assist the Admiralty I have little doubt we will be willing to do it.

In regard to the expenditure on bricks and mortar I think the Government have economised in all buildings where it is humanly possible so to do. I think the various Estimates we have had before the House show there is a great deal too much building. At the present time building is most expensive. I do not think there is any doubt that in the near future—certainly I think so—the cost of building will be considerably reduced. It may not perhaps be during the course of this year, but certainly within the next year or two. Therefore any building that can possibly be put off to a later date when it will not be so expensive should be put off, and I would urge the Departments concerned to take that into consideration. The condition of this country is so abnormal that we should economise on every Estimate. My feelings, I admit, run away with me in regard to the Navy, and the Navy Estimates are the last where I should economise, but I do feel we must economise on every Estimate, and we must put aside our feelings and urge upon the Departments concerned in these various Estimates not to think of economising next year or the year after, but this year—and on every single Estimate! It is no good putting it off and thinking that the time may not come for economy. The time has come! The country has to go through a financial morass, and unless we economise now we shall not have the money put by with which to get over that time.

I desire very briefly to join with those who have spoken on the need for economy, and cutting out of the Estimates everything that can be done without this year and next year. I say that because this afternoon under necessity—and I am not going to discuss it—we have met and cut down the allowance to the unemployed. If they have got to go through further agony owing to the shortness of the necessities of life, and then on the evening of this day hear, or read, that in this House there has been voted money for buildings that could be put off—I am convinced they can be put off—it will have a very serious effect upon the country and working-class thought. I appeal to the Government, if they have got to cut down unemployed benefits, to take their courage in both hands and say to their advisers that, so far as these buildings are concerned, we cannot have them this year or next year, and we shall not proceed with them.

The question of the amount of money expended on new works and buildings raises the question of the policy that the Government are asking the House this evening to adopt. I recollect that on the 1st December, speaking from the other side of the House, I requested the Government to adopt the following policy: that this year and in the next few years there should be a cessation of building—new works and buildings for Government Departments. I have during the past few weeks been investigating the total sum of money being spent this year on new works and buildings. The total sum which the Government are asking this House to vote in these various Estimates is upwards of £11,400,000 for bricks and mortar, with a further liability in the coming year of £12,600,000. These figures, I think, have not yet been stated in this House, but I think they are accurate and represent very large items of public money the Government are spending in all parts of the globe. Surely at this time, of all times, the Government should say to every public Department that there must be no new buildings. I urge that policy in the interests of this country. The main thing in Great Britain at present is to safeguard our national finances. Earlier in the day the House was informed that the policy of the Government of only two months ago was going to be altered. The policy of the Government of six months ago on the agricultural question is going to be altered. Therefore I appeal to the Financial Secretary to alter his policy to-night, and in doing so I am only in keeping with the Government's own policy on other matters which concern the public purse.

I have made a pretty close study of these Naval Estimates, and the more they are studied the more they clearly reveal that the Government seem to take a delight in spending public money at a time when money is scarce, not only in the coffers of the Exchequer, but in the pockets of every individual in the country. On page 99 of the Naval Estimates there is a sum of £42,000 put down for storage accommodation for oil fuel at the Cape of Good Hope. In these Estimates there are many large sums of money going to be spent for the installation of storage accommodation for oil fuel in all parts of the British Empire. Our Navy successfully fought for six years, therefore this is not the time that the House of Commons should be asked to spend these large sums of money in distant ports. Let me give one or two other instances to show that the Government are spending large sums of money in distant ports.

8.0 P.M.

During the Whitsuntide Recess I took advantage of the short holiday to visit Gibraltar. I found that the Government are spending there large sums of money on oil fuel accommodation. Gibraltar was a very important place during the War, but evidently the Navy was able to manage without oil fuel storage accommodation during that period. The total estimate for that work at Gibraltar amounts to £270,000. This year the House is to be asked to vote £58,000 with a contingent liability of £191,800. Opinions may differ as to the policy of the Admiralty upon this subject, but I suggest that these works might be postponed till our finances are in a more flourishing state, and until our trade is more prosperous, because Gibraltar is so near to this country, and the Admiralty have fears as to the naval position in distant ports But there can be no fear of naval action near Gibraltar, in view of the sinking of the German Fleet and our great predominance there in naval strength. I think I am entitled to press this point of view upon the Parliamentary Secretary, because I well remember in pre-War days defending, to the best of my ability, the First Lord's Estimates of that day, and finding myself, I must admit, often without many supporters from the Benches opposite. Therefore. I think my criticism this evening may carry a little more weight because of that attitude in the past. Then there is an item of £110,000 for storage accommodation for oil fuel at Hong Kong, and £65,000 to be spent this year. That particular work has been started. There has been already spent £45,000, and the Parliamentary Secretary will no doubt say to me, the money having been spent, would it be better to scrap the £45,000 rather than complete the work? I think the answer to him would be this: Let them progress more slowly with these works in the Far East. Take Malta, where the Government are erecting large oil fuel storage accommodation, and are asking for £77,000 for the purpose this year. In view of the geographical situation of Malta, I think that work could be postponed, if not entirely abolished. The Government are asking for a very large sum of money for oil fuel storage accommodation in this country. In the Portland District there is an item of £285,000—£145,000 this year. The same large increase occurs at other home ports. I think I have quoted enough figures to show that the Admiralty policy this year is not being influenced or dictated to in the slightest degree by the state of our national finances. The Admiralty officials and the Government are pursuing a policy as if the Exchequer were full. They are asking for large sums of money in all parts of the Globe, and I do think the Parliamentary Secretary to the Admiralty might hasten more slowly, and by that means safeguard our national finances and make our Navy more efficient in the future, because if our national finances are unsound, this country will not be able to find the large sums of money for our fleet in the years to come. It is vital that our finances should be efficient, and that there should be some margin to spare.

Turning over these Estimates, I come to Rosyth. During the period of the War this country did not grudge giving of her best and of her unlimited resources for the erection of docks, the building of ships and other naval purposes, and looking at this Estimate for Rosyth one would be inclined to say that this port had not been developed during the War. Surely, with the past record of Rosyth, with the large number of ships that have been stationed there, Rosyth could not have been such an inefficient port that it is necessary for the sake of efficiency to spend this large sum of money this year. At Rosyth alone this year the nation is being asked to spend £570,000. Whether Rosyth is necessary or not is well open to question. It may be said that Rosyth was started too late, and was not in an efficient state at the beginning of the War, but it was efficient during the War, we all admit. Admiral Beatty and his ships were stationed there, I think, from 1915 onwards. With that record in the past, is it necessary for the Admiralty to spend over £500,000 this year? I think that question is a very fair and just question to put to the Admiralty. Then pass on to Singapore, £50,000, and large sums for other purposes in different parts of the globe.

The point I am anxious to establish is a simple one. I pressed this point of view upon the Government last December, before these Estimates were produced, while the policy of the Government for the present year was under consideration. My appeal at that time fell on deaf ears. In December last the financial stringency was not so great. There was some surplus in the National Exchequer, but, in view of what has been said by Members of the Government, and the change of policy announced earlier in the afternoon, it is quite apparent that our revenue is decreasing, and the expenditure is not decreasing in like proportion. It is easy to go on spending public money, and I agree it is very difficult to check it. A very good reason no doubt can be given by the Admiralty this evening for every item in this Estimate. You can bring forward sound technical advice in favour of your policy, I have no doubt, and in ordinary times I would be found supporting the Government in this matter. But to-day of all days, when this country is being hit so severely, the House is asked to vote over £3,000,000 for new works and buildings, excluding the cost of repairs and maintenance, and to find this year £11,600,000, with a contingent liability for a further £12,400,000 in the coming year. I have been anxious to establish one point, and one point only. I am not disputing the technical and, it may be, the strategic advantage of the erection of all these stores for our fuel in every part of the globe, but I submit, with all earnestness and sincerity, to the Members of the Government that there is something far larger which transcends all their oil-fuel accommodation, and transcends the necessity of erecting these new works, whether at home or abroad, and that is to safeguard our national finances, and if the House divides on this Vote I thall record my vote against the Government on this point.

It is a little unfortunate, perhaps, that the hon. Member for Greenock (Sir G. Collins), who seems to assume that the Admiralty are inspired by a spirit of wanton extravagance, was not present to hear the Leader of his party pay a very signal tribute to the Admiralty, and, in particular, to the framing of these Estimates. I can accept the tribute all the more readily because I had no responsibility in the framing of these Estimates. The matter was in the hands of the Board and my distinguished predecessor in this post. I may say, in passing, that the form of the Estimates, which, I think, has proved a great convenience to Members of the House, has been mainly due to the initiative of the right hon. Gentleman himself, and I am sure the House is grateful to him for that. He made a very earnest appeal—an appeal, I think, to which we ought to respond in the spirit in which he made it—but I should like to say the impression which I have derived since I have been at the Board of Admiralty is that all members of the Board—distinguished sailors quite as much as we civilians—feel wholly their responsibility in this matter. They feel not only their responsibility for the Navy, upon which the existence of this Empire depends, but they realise that it involves the taxpayers of this country in very heavy financial burdens, and I believe they are no less anxious to keep down those burdens to the very minimum than to ensure our safety and our existence. I am convinced that they are anxious, in view of the large demand they feel bound to make upon the taxpayer, to have the confidence of the taxpayer and the Members of this House, and they realise that they would not retain that confidence if they indulged in expenditure which was not necessary and essential from the strategic point of view.

I believe it is in that spirit that the present Estimates were framed, and in that spirit every effort will be made to make savings this year on those Estimates, where we can make them, and every effort will be made to bring down next year's Estimates to the lowest possible figure. Every Department of the Admiralty has been investigating every item in the Estimates for some time now to see what effective reduction it can make. As I say, I hope we shall be able to secure in many details reductions in the present year, and be able largely to recast many items of the Estimates next year. But I would like, following up what my right hon Friend said, to remind the House that when you look at the immense importance of the Navy to the existence of our country, and when you look at the increased cost of everything, these Estimates, after all, are not so very, such very bloated, extravagant Estimates as is sometimes suggested. My hon. and gallant Friend the Civil Lord in Committee told the Members who were then present that this Vote A is only 62 per cent. larger in actual money units than the corresponding Vote before the War. If you allow for the increased cost of everything, that really means a 40 per cent. reduction. [An HON. MEMBER: "There is less necessity!"] In view of the less necessity, we have been able to secure a reduction of the Vote by something like 40 per cent. Several hon. Members referred to the desirability of revising our commitments in regard to bricks and mortar, and postponing that work to some time in the future when building might be cheaper. May I point out that that question has been very carefully considered by the Admiralty in framing these Estimates? I should like to draw attention to one fact in connection with this Vote which was dealt with very fully in the Committee, and that is that some of these items of expenditure on buildings and repairs would in the ordinary course have been carried out at intervals during the last six years, but during the War, when we had to concentrate on fighting, many of these things had to be left on one side. There is a degree of unsoundness beyond which we cannot let these buildings go, and this expenditure is necessary in order to make up the inevitable leeway rendered necessary by the War.

The hon. Member for Greenock (Sir G. Collins) referred to the expenditure on depots for oil fuel. This question has already been fully and conclusively dealt with by my hon. and gallant Friend who represents the Admiralty, and he explained the absolute dependence of the Navy on oil fuel in those parts of the world where those depots are required, and he showed conclusively that this expenditure was necessary in order to give mobility to our fleet. He also explained that our expenditure in various other directions was being kept down to the lowest reasonable figure, and in every way the Admiralty were arranging to do their work with the greatest measure of economy in the future. That is all I need say in answer to the very strong appeal made by my right hon. Friend opposite, an appeal with which I entirely sympathise, and to the best of my ability I will try to respond to it in the work we are doing on these Estimates, and in the framing of the Estimates for next year.

The House will have heard with pleasure the assurances which have been given by the Parliamentary Secretary to the Admiralty, but I do not feel satisfied that his desire, which we all know is very genuine, has been in all respects carried out. I heard what has been said about the expenditure on the coastguard stations, but it seems to me very strange that at a time when we are all agreed that nothing should be spent except what is absolutely necessary, we should find £141,000 put down for coastguard stations. I confess I should have been much more gratified if my hon. and gallant Friend had been able to say not only that he would do his best to keep down expenditure, but that he fully realised that nothing must be spent except what was absolutely and vitally necessary for the safety of the country.

I should have been more gratified if he had been able to say that we were going to have a new system of checking our expenditure. I see in this Vote a statement that large new Services are to be referred specially to the Treasury for approval and inclusion in the annual Estimate. That is a system which is at fault. It is the idea that only security for economy is to be found in referring to the Treasury Estimates for their criticism. That is not enough. You must limit definitely the amount to be spent by each Department of the public service, and you must see that it is not exceeded, and that whatever can be done with that amount shall be done, and nothing further than that shall be carried out.

I agree that it is very difficult indeed to read these Estimates in any detail and to agree with the conten- tion which has been put forward that there is no expenditure in these Estimates which is not vitally necessary for the national safety. The only test to apply to Estimates of any kind in a time like the present is whether the expenditure is really essential for the safety of the country. I confess that in reading these Estimates I find many items which possibly were essential to the comfort of individuals and many items which may be essential for the convenience of the fleet, but a great many of them are by no means essential or vital for the security of the country. I think the expenditure on buildings shown in these Estimates needs a much greater measure of justification than that which has been advanced from the Treasury Bench to-day.

During, the War only vital building works in connection with the defence of harbours which were necessary for the safety of the country were undertaken and very special efforts were made during the War to put those harbours in a state of defence. [An HON. MEMBER: "No!"] If that be not so, then it is a severe reflection on the administration which neglected this work. I cannot believe that it is seriously contended that in a time of war proper and adequate measures for the defence of our harbours were neglected That would be a very remarkable state of affairs which I am sure the people of this country were blissfully ignorant of during the War. Surely during the War such operations were undertaken and the harbours kept in a state of defence. All such measures should have been undertaken then. Today we should be faced only with expenditure on matters of minor moment such as the provision of messing accommodation, the introduction of a greater measure of convenience in certain dockyards, and other matters of that kind foreshadowed in these Estimates. These are the very kind of undertakings which are unnecessary. They are projects which only affect the comfort of individuals or the convenient working of the Fleet. They are not necessary to its safety or its maintenance, and they are things which in the exigencies of the present situation, and in the stress of our modern finance, should be omitted from Estimates presented to this House.

It is unnecessary to emphasise the desirability of postponing at any rate building which is not absolutely vital to the safety of the country until such time as the cost of building material shall have fallen and until such time as the demand for labour and material in the building trade as regards the rest of the country and in relation to our housing necessities has in some degree diminished. That is a contention which needs no emphasis. I take it that the hon. Gentleman is in a position to justify every single detail involved in the expenditure on building which appears on these Estimates, at any rate, he should be. I find, for instance, that there is an increase of £120,000 under the heading "Ordinary Repairs and Maintenance," and I understand that this increase is due to the reconditioning of commandeered property in the War, to the work of removing fixed defences created during the War, and further to overtaking various repairs which could not be undertaken during the War. Ever since the cessation of hostilities this item has represented a steadily increasing amount. In 1919–20 the amount asked for under this heading was £635,500 in 1920–21 it was £750,000, and in this year's Estimate it is £880,000. The work appears to become more expensive as the war period becomes more remote. Is this expenditure going in the future to rise by the same steady gradations as in the past three years, and can the hon. Gentleman give us any idea when this abnormal expenditure will come to an end? Turning to another item, I find that the sum of £35,000 is asked for the electrification of Bermuda Dockyard.

I was merely going to ask for what purpose it is proposed to utilise this Bermuda Dockyard. It would appear only to be useful in the event of hostilities directed against the United States, but as the hon. and gallant Gentleman has spoken on the point he may have explained that some other sphere of action is contemplated. On another page in the Estimates I notice that a sum of £141,750 is asked for for new buildings for the coastguard. I should like the hon. Gentleman to explain, if he can, what new work is going to devolve upon coastguards which will involve this very great increase in expenditure. Are we to understand that a great and immediate outbreak of smuggling is anticipated owing to the onerous incidence of the Anti-Dumping Bill, which will require increasing vigilance on the part of the coastguard, who we were given to understand not very long ago were to be abolished? The total Estimate under this head last year was £83,000. Surely an increase this year of £58,000 is abnormal. May I turn next to a point in connection with Pembroke Dockyard. In the Memorandum on the Navy Estimates, dated the 12th March, 1921, the then First Lord of the Admiralty said that it was expected to close Pembroke Dockyard during the financial year 1922–3, and that no further new work would be taken in hand at that yard. Yet on these Estimates there is a sum of not less than £224,000 set down for slipways and £408,000 for storage accommodation for oil fuel. If this dockyard is to be closed down can the hon. Gentleman explain why new undertakings are being embarked upon, or in the alternative can he tell us what has led the Admiralty to change its views in regard to closing down this dockyard and embarking on new and expensive projects in connection with it?

There are innumerable items one might touch upon from the point of View of national necessity. We ought to apply the test to any proposed expenditure, is it vital and essential to the national safety and the well-being of our people? I fancy if we do apply that test we can challenge innumerable items, and I will take a very few of them. We find at Plymouth £16,000 is asked for for bathing and wash-places for ships in dock. Is this sudden access of cleanliness to be pandered to in the present state of our national finances? £23,000 is asked for in the same yard for cooking arrangements for the crews of ships in dock. Surely the sailor who is famous throughout the four corners of the universe for his power to meet requirement of his own in the most difficult situations is able to find his own cooking arrangements in dock without asking for £23,000 from the National Exchequer?

I have consulted friends who have experience in this matter. Men who enter the Service do not usually anticipate that measure of comfort which they are accustomed to find in home life, and I venture to say that every man in the Service would be prepared to undergo temporary discomfort rather than that the national finances should be overburdened in these times—they would willingly submit to that discomfort until the national finances have recovered themselves, and until the various materials required have become cheaper—it may be in the course of the next year or two. I am sure most of us would be prepared to undergo a certain measure of discomfort rather than throw a burden on the country which it cannot possibly afford at the moment. There is another item of £17,000 for cookhouses in naval bar-racks. Last year that item was £9,350; this year it shows an increase of £7,750. In regard to messing accommodation the story is the same. £28,000 is required for a new warrant officers' mess, and another sum of £18,000 for the adaptation of rooms for messing purposes. There is a total sum in this area of over £50,000 for messing accommodation in the Royal Naval Barracks. I do venture to protest against the idea which obsesses the mind of the Government that anything which is desirable must be granted. We must develop a fresh angle of vision in regard to these affairs. We must look upon them from the general standpoint of our national finances, and must ask ourselves, not whether it is desirable, but whether we can afford it. If that test is applied to these Estimates, they will, in innumerable instances besides those chance instances which I have quoted, fail lamentably. The Government still regard our whole national situation from the War point of view. If it is said by someone in Portsmouth that new messing accommodation is required, that is equivalent to someone saying to us a few years ago: "We must have more shell in a certain sector or we shall be defeated." It is the War standpoint. Owing to the manifold demands of the War, these things had to be delivered or we went down to utter ruin. You can keep that sort of thing up for a short time, but not indefinitely. Until the Government rid themselves of that point of view, until they change their whole outlook upon the financial situation and apply the test, "Can we afford it?" and not "Is it desirable?" we shall labour under the stress of circumstances which is to-day bringing the country to the very verge of ruin.

I desire to join in the protest which has been made from these Benches against this increased Vote. The hon. Gentleman assured us, as every Minister does, that his particular Department is only too anxious to cut down its expenses to the lowest figure consonant with true economy; and yet, after all these protestations, when we test them by results, what do we find? We find that for new works and additions we have this year an increase of nearly £1,000,000 under Vote B. The hon. Gentleman tells us that every particular item in that particular Vote is absolutely essential for the safety of our country. That is after a War which we are supposed to have won, after naval engagements in which our fleet came out triumphant and the enemy's fleets were scattered on the waters and now no longer exist. If ever there was a time when we could cry "Halt!" in this reckless expenditure it is the present time, when there are practically no enemy fleets in existence. At the same time we are told by the Minister of Health that he must cut down his estimate of 1,000,000 houses, the requirement shown in 1919, to 300,000; and we are told by the President of the Board of Education, in spite of protests from these Benches, that the number of places available for the needs of secondary education throughout the country must be cut down to the utmost limit, and that no further accommodation can be given. They are prepared to economise on housing or education, but when it is a question of works and buildings, not making for the health or better education of the people, but required by our Navy, then we have in this Vote an increase of nearly £1,000,000.

What a travesty it is! Where is the sense of proportion or of the true value of those things which really matter to the well-being of the nation? Spend money on that which profiteth not, and on that which will help to build up a higher standard of life in our homes, and to provide greater educational facilities for our workers, you must economise. On your Navy, hands off, you fearful economists; you must spend more than you spent before! The hon. Gentleman took credit for the fact that his Estimate under this Vote was only increased by 62 per cent. as compared with the pre-War standard, allowing for the decreased purchasing power of the sovereign; and yet, on his total naval Estimate, we find an increase far above the 1914 standard, even making full allowance for the decreased purchasing power of money. When we are asked to spend this extra money on new works, additions and alterations, it is folly to say that the Government are really anxious to economise. Apart from the amount of money involved, there is the question of the particular class of expenditure. Surely, at a time like the present, all labour and money that can be used for works, buildings or structural alterations, should be used for housing and for schools, and if you are using materials which are short even to-day, when bricks and mortar and other structural materials are so urgenttly required for housing purposes, it is folly, quite apart from the amount of money involved, to use them for such purposes as are shown in this Vote. Therefore, I protest against this continued piling up of expenditure at a time like the present, when the Government themselves suggest that the one need of the nation is economy, and when they are going to reduce, as has already been mentioned, the amount they can spend for Out-of-Work Benefit. At such a time it is worse than folly to come down and ask for £1,000,000 more for bricks and mortar for naval purposes. What is going to be the psychological effect on the country? What is going to be the effect, when things are none too healthy in the minds of the people, of their finding that the things on which they have to economise are their houses, their education, their unemployment benefit, while the Government can squander money in millions on work for naval purposes? From every point of view we cannot afford the money, we cannot afford the material, we cannot afford to have this unfortunate effect created in the minds of the people of this country by this want of economy on things that matter and waste of money on things that do not matter.

I am not an authority on the Navy, and am bound to approach any question regarding it with the utmost caution, but, looking down these Estimates, I am bound to say that I can see no evidence of the effect of the Government's pledges that they are going to economise. A great number of the items have already been mentioned, and I do not wish to go over the ground again, but I should like to refer to the oil fuel stores which are being set up all over the world. I daresay there is good reason for erecting some of them. My hon. and gallant Friend referred particularly to Gibraltar. I do not know what is the justification for that particular store, but it may be that it was considered that Gibraltar had a special strategic importance, which could not be left out of account. If that is the justification that the hon. and gallant Gentleman would give for Gibraltar, I cannot think it could have any validity in the case of the oil storage accommodation at Rangoon. No one can say that Rangoon is of any particular strategic importance, but, apart altogether from that, it is in the vicinity of a very large oil field. It must have access without very great difficulty to oil supplies. There are large stores there already, kept by private companies, and I am sure that it cannot be necessary to start upon the erection of large oil accommodation at that port. It may be that in some cases these oil stores have been started in previous years, and it is just a question of completion. In this case that cannot be said, because it is a new service, upon which we are proposing to pay £150,000, and in the present year we are going to spend £50,000.

Will the hon. and gallant Gentleman say that the erection of that oil store accommodation cannot be postponed? All that we ask the Government to do is to look upon expenditure of this kind in exactly the same way as they look upon expenditure, for instance, on unemployed benefit. Here we are embarking upon all sorts of work at the other ends of the earth, providing work for Chinese coolies, Malay labourers and all that sort of thing, while at the same time we are introducing a Bill to reduce the payment of unemployed benefit from £1 to 15s. Does the hon. and gallant Gentleman say it is more necessary that we should have large oil tanks at Rangoon than that we should guarantee to hard working men, who through no fault of their own are thrown out of a job, £1 rather than 15s. That is really the test to apply. I am sure the Government do not want to reduce unemployed benefit and are only doing it with the greatest hesitation and after long and anxious consideration, but did they give the same anxious consideration to payments of this kind, because really that is the only way that we can test the sincerity of the Government in all their protests as to their desire for the reduction of expenditure. The hon. and gallant Gentleman made a great point that the Vote had only gone up by 62 per cent. I have looked up the figures and I do not understand how he makes out that percentage because in 1914, if my information is correct—and it has been taken from the official records—the expenditure on this head was £2,283,000, whereas in 1921 the expenditure was £4,492,000, that is to say practically 100 per cent. increase. That is rather inconsistent with what the hon. and gallant Gentleman said and I should like some explanation of that apparent inconsistency. I am certain, in spite of all the protests of the Government, they do not realise the parlous financial position into which they have brought the country. There is no evidence in these Estimates that they are really grappling with the situation. Every time we hear them say they are going to do it, they are going to scrutinise in future every Estimate and not a penny will be asked for which is not vitally essential, but it is no use putting off these things till to-morrow. It must be done to-day. The Government have had a great object lesson as to the opinion of the country on what they have done. They had a constituency which one would have regarded as a stronghold of Toryism and they turned out the Government candidate with a huge majority.

There are no naval works, I understand, in St. George's.

I quite realise that I cannot develop that argument, and I did not mean to do it. I was only citing it as an example of the opinion of the people outside as to the way the Government is tackling this question. I hope the hon. and gallant Gentleman and his friends in the Government will take warning before it is too late.

I want to protest against this expenditure from another point of view. We have, according to the Minister of Labour, something like 2,000,000 people who are being paid doles from the Unemployment Insurance Act, and you have something like 1,000,000 miners idle as well. The country is urgently in need of houses. The labour which will be required for building houses for those people, who are in urgent need of them, will now be diverted to building up these oil tanks. Is this the time to begin to make experiments when the financial position of the country is in such a deplorable state? When the Minister introduced this Estimate he said they were going to burn oil fuel instead of coal. Is that going to be economically sound? We were told yesterday that when the steel rail ring was formed by the steel manufacturers in this country, in America and in Germany they were forced to do it by the German Government. Is there not the same fear that when you substitute oil for coal you are going to get an oil ring established between the capitalists and the profiteers in these different countries? There is another very important point, especially as it affects South Wales. We have been supplying to the Navy the best steam coal. I think the tonnage supplied will be about 2,000,000 tons per annum. By using oil fuel instead of this steam coal you are going to throw thousands of miners in South Wales out of employment.

The effect will be that these people will lose the purchasing power of the money that they have earned, and instead of being able to purchase goods in the cotton trade or the agricultural industry or the boot trade, they will have no money to spend, with the result that unemployment will be caused in the other trades. The Minister ought to consider whether this is the time to try these experiments by building these oil tanks, and introducing oil instead of coal. We have sufficient trouble in this country at the present time, and I do not believe that this is the time when the Government should try experiments with these oil tanks. If they have the money to spare, and I do not believe they have the money to spare, they ought to be using it for some more useful purpose, such as building houses, and giving better payments to the unemployed, instead of reducing their unemployment pay, as is proposed in the Bill introduced to-day by the Minister of Labour. On behalf of the Labour party I protest very strongly against this expenditure on these experiments at the present time.

9.0 P.M.

It is necessary to emphasise the feeling on this side of the House that the Government have not yet got out of the war mind. The Parliamentary Secretary has stated that they have reduced every item to the lowest possible point, and that he is anxious to reduce every item to the lowest possible point, but that statement has been made on every occasion during the last two or three years. The late Patronage Secretary to the Treasury sent letters to the Press saying that not a single penny of this year's Estimates could be reduced, having regard to the efficiency of the various services. Circulars have, however, been sent to the different Departments saying that expenditure must be reduced by 20 per cent. I do not know whether the fighting Departments have received copies of the circular. It is very unreasonable for the Chancellor of the Exchequer to send circulars of that sort to a Department which two years ago told us, and last year also, that they had reduced their Estimates to the very lowest possible limit compatible with the safety of the country and the Empire. If 20 per cent. can be taken off this year, in the opinion of the financial experts of the Government, we are justified in assuming that a good deal more than 20 per cent. can be taken off the Estimates. With respect to the new works, we have been told by the Minister that they are only spending 60 per cent. more this year than in 1914. The corresponding figure in 1914 was £2,283,000, and the figure for this year is £4,493,000. I do not take into account the annuities mentioned, because the hon. Member is not responsible for that. The real comparable figures are those which I have quoted. Therefore, the increase is practically 100 per cent. and not 60 per cent., and the Minister cannot take credit for making the big reduction which he claimed to have done. With regard to salaries, I find that in 1921 the amount was £189,000, compared with £81,000 in 1914. Of course, salaries have gone up in all the Departments, but our salaries have not gone up. We assumed that after the German Fleet had been sent to the bottom of the sea the number of officials in the Admiralty would have been reduced, but instead, the amount paid in salaries is almost 200 per cent. more than in 1914. Really, they ought to have been not only relatively but absolutely reduced this year if the Admiralty were in earnest in reducing expenditure. One really wonders if we have won the War. Before the War the people of this country complained that they were groaning under the burden of armaments, but to-day the burden is heavier than ever before. The burden of preparing for another possible future war has been camouflaged in the Bill which was introduced last night, because every man who buys a microscope in future will have to pay £10 or £20 more as a war tax.

We appreciate the hon. Member's remarks upon that point, but I am afraid that it is not possible for him to introduce them here.

I mentioned that matter as one of the side-shows in connection with the expenditure legislation of the Government. I should like more explanation of the expenditure upon new buildings for the coastguards. I am acquainted with some of the coastguards, and although they are excellent fellows, I often wonder what they are there for. There is something in the suggestion of the hon. Member for Harrow (Mr. Mosley) that the Government think that in future there will be a great increase in smuggling as a result of their new legislation, and that it will be necessary to put new life into the coastguards, and that instead of the numbers being reduced they will have to be increased. I have been seriously considering whether I should resign from this House and go to some parts of the country with which I am familiar and conduct there a flourishing trade between this country and the Continent in lenses and other optical elements.

I warn the right hon. Gentleman that it is not £180,000 that he will have to expend next year if that sort of legislation is to go on. It is the question of policy at home, our fiscal policy, that determines the expenditure even on our fighting establishments. I am not an expert on the question whether coal or oil should be used in the Navy, but I did not like the air of triumph with which my hon. and gallant Friend referred the other day to the spread of the use of oil. From the point of view of the trade of this country the aim of the Government should be not to encourage the use of oil but the use of coal in this country, so that we could increase our exports and not have to import oil from other countries. I say that from the point of view of the man in the street. It may be all stark nonsense, but, taking into consideration the condition of the coal trade at present and prospectively, it seems to me that the Government, by encouraging the idea that oil should be employed for all shipping instead of coal, are doing great damage to the trade of the country, and that it is not right for the Government to go too hastily in that direction until trade is re-established, and the basis of that is the export trade in coal.

I see that £250,000 is to be spent on tanks and stores at such places as Singapore, Rangoon, and the Falkland Islands. I have a sentimental regard for the Falkland Islands because an important engagement was fought there in which several scores of my constituents took part. But so far as I can see I do not see any necessity in the present condition of the world for spending that money. It would be much better for the Government to give the money to my right hon. Friend the Secretary for Scotland, whom I see present, from the strategic point of view, to improve the condition of the men who were fighting off the Falkland Islands, the men who man your Naval Reserve, because at the present time you are in great danger of losing the source from which the Naval Reserve has been recruited hitherto, on account of the neglect of these men with respect to the fishing trade and steamship communications. I join in the appeal made by other hon. Members. If the naval position were really in danger at present do you think that these benches would have been so empty as they were only five minutes ago when there were only two or three men sitting behind the Government representative? The mere fact that the Government were only supported by my hon. and learned Friend the Member for Bristol Central (Mr. Inskip) for about half-an-hour shows that the people who used to take an interest in naval matters consider that they are safe for the next generation. The right hon. Gentleman can allow the Chancellor of the Exchequer to reduce the Estimates not only by 20 per cent., but to reduce them by at least one-half consistently with the safety of the country for a great many years to come.

It is with some fear and trembling that I also offer a few words with regard to this Vole. I know very little of the Navy, but I only want to emphasise that as the criticism advances it only shows the folly of the efforts of those who are responsible for the Government Departments in every direction. I am not going to refer to items which have been already dealt with, but I do want to protest against the panicky condition into which, apparently, the various Departments have now got, and especially with regard to the Naval Estimates which are now before us. I wonder do they realise that there is an abundant quantity of coal in this country, that the trouble is not with regard to the supply of coal, but that the root of our present difficulty is a labour trouble, and that labour trouble will arise with regard to the supply of oil fuel as a motive power if labour has not been properly dealt with, just in the same way as we have trouble in the coal trade at present, and there will be great dissatisfaction when the country comes to know of the Bills introduced into this House to-day to reduce the insurance for unemployment from 20s. to 15s. and from 15s. to 12s., likewise with regard to girls and boys, and when we read side by side with that of the stupendous provisions that are being made, notwithstanding all the warnings that have been issued since the Armistice.

Whenever these Votes are coming up for discussion Members on this side of the House have been continuously appealing to the Government to reduce the burden of armaments on this country. I was hoping to see some of our anti-waste Members in their places, ready to make their protest against this expenditure. Notwithstanding our warnings, no appreciable step has been taken to reduce the Estimates. If those in charge of the Admiralty have made up their minds to dispense with coal, I have no quarrel with them at all; coal has no further interest as far as I am concerned, and I think the miners might as well look for some other employment and leave the mines where they are. But I do want to know whether the Admiralty has made up its mind.

Hon. Members have directed criticism towards a large number of items in these Estimates. I notice on page 101 that it is proposed to renew roof coverings to certain coal sheds. Why they should want coal sheds after having asked to be provided with money for the erection of oil tanks I do not understand. Criticism might be directed at other items of the Estimates. There is provision made for cook-houses, for mess-houses, and for quarters, and the Estimates show that whatever else we cannot find money for the Admiralty representatives with the utmost effrontery can come to this House and ask for unlimited sums to be spent in the erection of all these new works, the details of which are spread over several pages of the Estimates and in the aggregate amount to something like £2,000,000. That is at a moment when every authority in the country is asking for loans, not gifts, to assist in the building of houses for the people and to help in keeping industry going. It appears, however, that there is not a single penny in the Treasury which can be so advanced to assist these districts. I join with those who have protested and I ask the Minister in charge of these Estimates to backpedal as soon as he can, to go astern at once, because when people read the discussions in this House and recollect that there is no money available for the benefit to which men and women and boys and girls have contributed, or rather when they know that their benefits are to be reduced, and that within an hour or two of a Bill being introduced having that purpose in view the Admiralty proposes to spend £2,000,000 on new work, there will be something said. At this stage of the financial crisis we cannot afford to embark on this heavy outlay.

I cannot pretend to compete with the expert knowledge of naval affairs either of the last speaker or his predecessor (Dr. Murray). I represent, however, an important dockyard constituency, and I wish to ask one or two relevant questions. Rosyth naval base is in my constituency. I observe that in Vote 10, page 111, there is some reference to the Scottish Housing Company's scheme, the Admiralty contribution to which is £100,000. I notice that in 1920–21 the contributions of the Admiralty was £40,000, and that in 1921–22 there is no contribution at all. What is the explanation? Some time ago I asked the First Lord a question, and in reply he said that the considered policy of the Admiralty regarding Rosyth was that it should continue as a first-class home station. That being so, I should have thought that the policy of the Admiralty would have been to provide adequate housing accommodation for the employés of the dockyards. What is the present position? A very large number of the employés have to travel a considerable distance to their work. A large number have to go daily to and from my own native town of Kirkcaldy, and that involves considerable expense.

What is the considered policy of the Admiralty regarding the provision of housing accommodation at Rosyth? You have there a large population, a mixed population, reinforced to a large extent by men from the southern dockyards, who find in Scotland a home which they appreciate almost more than their homes in the South of England. In Rosyth we have one of the most up-to-date and best equipped naval stations in Great Britain, and it seems extraordinary that the Admiralty so far have pursued such an uncertain policy in providing adequate accommodation for the employés there, who expect to remain at Rosyth so long as it remains a first-class station. I am bound to say that the houses which they first erected in Rosyth were very inadequate. I have visited a considerable number of them, and I should say that in many cases due regard had not been paid to the comfort of the employés who were expected to occupy those houses.

There is another item, on the same page, to which I must refer for a moment. It deals with the widening of the road in connection with the Dunfermline district tramways. I can only say that in connection with the work on that road, the Dunfermline Municipal Council has been most unfairly treated by the Admiralty. During the War, when the Dunfermline Town Council was extremely anxious to assist the Government in every possible way, they entered into certain verbal agreements with the Admiralty. They arranged that a very fine road should be made between Dunfermline and Rosyth, and I consider that that road is one of the finest highways in Scotland. It has been left to the Dunfermline Town Council to bear practically the whole of the expense of that road, for which they get practically no return, while they entered into the agreement to make the road under a definite promise of assist- ance from the Admiralty. The Admiralty offered to provide, free of cost, the stones for the formation of the road. The Dunfermline Town Council naturally supposed that that meant free of cost and delivered at the roadway which was to be made. As a matter of fact, the Dunfermline Town Council paid more for those stones, which came from what was supposed to be a free quarry, than they could have bought the same stones for in the open market.

I have brought this matter on two occasions before the former Financial Secretary to the Admiralty, my right hon. Friend who is now the distinguished Prime Minister of Ulster. He promised to consider the matter in a friendly way. We made to him what was an ad misericordiam appeal. An appeal for some sort of allowance regarding this road was turned down by Lord Lytton, but the present Prime Minister of Ulster promised to consider the matter afresh. I wish, in the most earnest manner, to protest against the way in which the Dunfermline Town Council has been treated by the Admiralty regarding this road. They showed, during the whole of the War, a most patriotic spirit in every way, and they are entitled to more considerate treatment at the hands of the Admiralty, whom they did so much to serve during the War. I hope my hon. Friend will have something satisfactory to say on this subject. I apologise to him for introducing it at such short notice, but I was unaware, until half an hour ago, that we should consider Vote 10. That must be my excuse for not having given previous notice of these very important matters which I have raised.

I wish to ask the Admiralty authorities whether the change from coal to oil in the Navy has been considered in the light of recent occurrences? It is undoubtedly the fact that for the last five or six years we have had an extremely high price for Welsh Admiralty coal, but I think any mining Member here will admit that it is highly probable that within the next few months that price will rapidly recede. There is no possibility of coal in this country remaining at the very high figure at which it stands to-day. If the Admiralty have based their opinion as to the desirability of this change on the present price of coal, it seems to me that they may find, when market conditions settle down in this country, that the price of coal has declined so greatly that it is much cheaper to propel their ships by coal than to use oil. Bad as the miners are, I would rather be in the hands of the mining fraternity of this country than in the hands of the oil magnates of the world. The Admiralty, in abandoning coal and relying entirely upon oil, are embarking upon a very dangerous experiment. I rather fancy they are going ahead a little bit too quickly. They are spending an enormous amount of money in these Estimates on oil storage, and I should like to know whether this storage accommodation is properly situated. Is it all together, or in small units dotted about here and there? What protection have these storage tanks against aircraft raid and against the ordinary risk of fire? It is quite clear that if you have a large stock of oil you

are very much more liable to a big disaster than if you have a large stock of coal. I really would ask the Government to consider where they are going. Here we have enormous Navy Estimates, £6,000,000 for buildings, and, I believe, something like £85,000,000 or £86,000,000 in addition. The country is not going to stand this long. The Government had a very severe warning yesterday, and I hope they will not neglect it. Whenever we press for economy in the Government we are always told that they are going to economise next year; it is never this year. I believe it will be so to the end of this Government. I have never known any spendthrift who ever became economical.

Question put, "That this House doth agree with the Committee in the said Resolution."

The house divided: Ayes, 144; Noes, 59.

Division No. 154.]

AYES.

[9.35 p.m.

Adkins, Sir W. Ryland D.

Geddes, Rt. Hon. Sir E. (Camb'dge)

Nall, Major Joseph

Agg-Gardner, Sir James Tynte

Gibbs, Colonel George Abraham

Neal, Arthur

Amery, Leopold C. M. S.

Gilmour, Lieut.-Colonel Sir John

Newman, Colonel J. R. P. (Finchley)

Baird, Sir John Lawrence

Grant, James Augustus

Nield, Sir Herbert

Balfour, George (Hampstead)

Green, Albert (Derby)

Norris, Colonel Sir Henry G.

Barnett, Major Richard W.

Green, Joseph F. (Leicester, W.)

Oman, Sir Charles William C.

Barnston, Major Harry

Greenwood, William (Stockport)

Parker, James

Beauchamp, Sir Edward

Greig, Colonel James William

Parkinson, Albert L. (Blackpool)

Bellairs, Commander Carlyon W.

Hacking, Captain Douglas H.

Pease, Rt. Hon. Herbert Pike

Birchall, Major J. Dearman

Hambro, Angus Valdemar

Perkins, Walter Frank

Boscawen, Rt. Hon. Sir A. Griffith-

Hannon, Patrick Joseph Henry

Perring, William George

Bowyer, Captain G. W. E.

Henderson, Major V. L. (Tradeston)

Pollock, Sir Ernest Murray

Bramsdon, Sir Thomas

Hohler, Gerald Fitzroy

Pownall, Lieut.-Colonel Assheton

Brassey, H. L. C.

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

Pratt, John William

Breese, Major Charles E.

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

Purchase, H. G.

Bridgeman, Rt. Hon. William Clive

Hopkins, John W. W.

Ratcliffe, Henry Butler

Briggs, Harold

Hotchkin, Captain Stafford Vere

Rees, Sir J. D. (Nottingham, East)

Brittain, Sir Harry

Howard, Major S. G.

Renwick, George

Brown, Major D. C.

Hudson, R. M.

Richardson, Alexander (Gravesend)

Bruton, Sir James

Hunter, General Sir A. (Lancaster)

Roberts, Rt. Hon. G. H. (Norwich)

Buckley, Lieut.-Colonel A.

Hurd, Percy A.

Robinson, S. (Brecon and Radnor)

Carr, W. Theodore

Inskip, Thomas Walker H.

Rodger, A. K.

Casey, T. W.

Jephcott, A. R.

Roundell, Colonel R. F.

Churchman, Sir Arthur

Johnson, Sir Stanley

Rutherford, Sir W. W. (Edge Hill)

Clough, Robert

Jones, Sir Edgar R. (Merthyr Tydvil)

Samuel, Samuel (W'dsworth, Putney)

Coats, Sir Stuart

Jones, Henry Haydn (Merioneth)

Sanders, Colonel Sir Robert Arthur

Cobb, Sir Cyril

Jones, J. T. (Carmarthen, Llanelly)

Sassoon, Sir Philip Albert Gustave D.

Colvin, Brig.-General Richard Beale

Kidd, James

Scott, A. M. (Glasgow, Bridgeton)

Conway, Sir W. Martin

King, Captain Henry Douglas

Shaw, Capt. William T. (Forfar)

Cowan, Sir H. (Aberdeen and Kinc.)

Lewis, T. A. (Glam., Pontypridd)

Sprot, Colonel Sir Alexander

Curzon, Captain Viscount

Lister, Sir R. Ashton

Stanley, Major Hon. G. (Preston)

Davies, Alfred Thomas (Lincoln)

Lloyd, George Butler

Steel, Major S. Strang

Davies, Thomas (Cirencester)

Lorden, John William

Stevens, Marshall

Dawes, James Arthur

Lort-Williams, J.

Sturrock, J. Leng

Dewhurst, Lieut.-Commander Harry

M'Curdy, Rt. Hon. Charles A.

Sugden, W. H.

Edwards, Allen C. (East Ham, S.)

M'Lean, Lieut.-Col. Charles W. W.

Surtees, Brigadier-General H. C.

Edwards, Major J. (Aberavon)

Macleod, J. Mackintosh

Sutherland, Sir William

Eyres-Monsell, Com. Bolton M.

Mason, Robert

Thomson, F. C. (Aberdeen, South)

Evans, Ernest

Mitchell, William Lane

Thomson, Sir W. Mitchell- (Maryhill)

Fell, Sir Arthur

Molson, Major John Elsdale

Turton, Edmund Russborough

FitzRoy, Captain Hon. Edward A.

Moreing, Captain Algernon H.

Waddington, R.

Foxcroft, Captain Charles Talbot

Morison, Rt. Hon. Thomas Brash

Wallace, J.

Fremantle, Lieut.-Colonel Francis E.

Morris, Richard

Ward, Col. L. (Kingston-upon-Hull)

Gange, E. Stanley

Munro, Rt. Hon. Robert

Weston, Colonel John Wakefield

Ganzoni, Sir John

Murchison, C. K.

Wheler, Col. Granville C. H.

Gardiner, James

Murray, William (Dumfries)

Williams, Col. Sir R. (Dorset, W.)

Wills, Lt.-Col. Sir Gilbert Alan H.

Wood, Hon. Edward F. L. (Ripon)

TELLERS FOR THE AYES.—

Wise, Frederick

Worthington-Evans, Rt. Hon. Sir L.

Colonel Leslie Wilson and Mr.

Wolmer, Viscount

Young, E. H. (Norwich)

Dudley Ward.

NOES.

Adamson, Rt. Hon. William

Harmsworth, Hon. E. C. (Kent)

Robertson, John

Benn, Captain Wedgwood (Leith)

Hartshorn, Vernon

Rose, Frank H.

Bowerman, Rt. Hon. Charles W.

Hayday, Arthur

Royce, William Stapleton

Bromfield, William

Henderson, Rt. Hon. A. (Widnes)

Sitch, Charles H.

Brown, James (Ayr and Bute)

Hirst, G. H.

Smith, W. R. (Wellingborough)

Cairns, John

Hodge, Rt. Hon. John

Spencer, George A.

Cape, Thomas

Hogge, James Myles

Swan, J. E.

Carter, W. (Nottingham, Mansfield)

Irving, Dan

Thomson, T. (Middlesbrough, West)

Collins, Sir Godfrey (Greenock)

John, William (Rhondda, West)

Thorne, G. R. (Wolverhampton, E.)

Davies, A. (Lancaster, Clitheroe)

Kennedy, Thomas

Waterson, A. E.

Edwards, C. (Monmouth, Bedwellty)

Kenyon, Barnet

White, Charles F. (Derby, Western)

Edwards, G. (Norfolk, South)

Lawson, John James

Williams, Aneurin (Durham, Consett)

Finney, Samuel

Lunn, William

Williams, Col. P. (Middlesbrough, E.)

Galbraith, Samuel

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

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

Gillis, William

MacVeagh, Jeremiah

Wilson, W. Tyson (Westhoughton)

Glanville, Harold James

Mills, John Edmund

Wood, Major M. M. (Aberdeen, C.)

Graham, D. M. (Lanark, Hamilton)

Morgan, Major D. Watts

Young, Robert (Lancaster, Newton)

Griffiths, T. (Monmouth, Pontypool)

Murray, Dr. D. (Inverness & Ross)

Grundy, T. W.

Myers, Thomas

TELLERS FOR THE NOES.—

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

Parkinson, John Allen (Wigan)

Lieut. Commander Kenworthy and

Hall, F. (York, W. R., Normanton)

Richardson, R. (Houghton-le-Spring.)

Mr. Mosley.

Order read for Consideration of Second and subsequent Resolutions.

Resolutions reported.

2. "That a sum, not exceeding £7,821,000, be granted to His Majesty, to defray the Expense of Victualling and Clothing for the Navy, including the cost of Victualling Establishments at Home and Abroad, which will come in course of payment during the year ending on the 31st day of March, 1922."

3. "That a sum, not exceeding £720,500, be granted to His Majesty, to defray the Expense of Medical Services, including the cost of Medical Establishments at Home and Abroad, which will come in course of payment during the year ending on the 31st day of March, 1922."

4. "That a sum, not exceeding £389,000, be granted to His Majesty, to defray the Expense of Civilians employed on Fleet Services, which will come in course of payment during the year ending on the 31st day of March, 1922."

5. "That a sum, not exceeding £465,500, be granted to His Majesty, to defray the Expense of Educational Services, which will come in course of payment during the year ending on the 31st day of March, 1922."

6. "That a sum, not exceeding £449,000, be granted to His Majesty, to defray the Expense of Scientific Services, which will come in course of payment during the year ending on the 31st day of March, 1922."

7. "That a sum, not exceeding £580,600, be granted to His Majesty, to defray the Expenses of the Royal Naval Reserve the Royal Fleet Reserve, and the Royal Naval Volunteer Reserve, &c., which will come in course of payment during the year ending on the 31st day of March, 1922."

8. "That a sum, not exceeding £2,725,000, be granted to His Majesty, to defray the Expense of various Miscellaneous Effective Services, which will come in course of payment during the year ending on the 31st day of March, 1922."

9. "That a sum, not exceeding £2,093,500, be granted to His Majesty, to defray the Expense of Half Pay and Retired Pay, which will come in course of payment during the year ending on the 31st day of March, 1922."

10. "That a sum, not exceeding £4,003,500, be granted to His Majesty, to defray the Expense of Naval and Marine Pensions, Gratuities, and Compassionate Allowances, which will come in course of payment during the year ending on the 31st day of March, 1922."

11. "That a sum, not exceeding £816,700, be granted to His Majesty, to defray the Expense of Civil Superannuation, Compensation Allowances, and Gratuities, which will come in course of payment during the year ending on the 31st day of March, 1922."

Second Resolution agreed to.

Third Resolution read a Second time.

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

I understand this is the Medical Vote of the Navy, and I desire to make a few observations upon it, if my hon. Friend will give me his attention. I understand that the representatives of the Army and Navy are meeting together, under the presidency of the Lord President of the Council. I want, if possible, the Admiralty to meet the War Office and see whether they cannot effect economy by amalgamating the medical arrangements of the Army and the Navy. To give a concrete example, I find in the case of Hong Kong that the military hospital there has accommodation for 166 patients and the maximum number of patients accommodated is 64, showing a surplus accommodation of 102. The minimum number of patients accommodated is 20, or a surplus of 146. Similar figures are shown in connection with the naval hospital, which has accommodation for 135, a maximum accommodated of 97 and a minimum of 55. The Yokohama Naval Hospital, also on that station, was closed all through the War and right up to 1920, and it has now been reopened. I desire the House to consider how much might be saved if we had a thoroughgoing inquiry, with the object of preventing overlapping between the two Services. There is no difference between the body of a soldier and the body of a seaman so far as medicine is concerned. The House would be shocked if it were to investigate the number of medical men, say, on the China station, and the number of men for whom they have to cater. We have also convalescent barracks at Hong Kong for the military, and if all these arrangements were considered together, I think we could bring about considerable economies. In the 1906–10 Parliament I drew attention to the overlapping in regard to bakeries. The Navy had separate establishments at all the ports, and the Army also, and I suggest that a general stocktaking should be made in regard to the medical arrangements, because I do not believe the medical service is doing its best in both Services to cut down expenditure.

I am anxious to reinforce the point put forward by the hon. and gallant Member for Maidstone (Commander Bellairs). Might I draw the attention of the Admiralty to the case of Malta, where the naval and military have separate establishments side by side? We are anxious to prevent the Army and Navy being kept in separate, watertight compartments, and if they could combine on hospital accommodation, it would, I think, be of advantage to the patients and incidentally to the advantage of the taxpayer. I should like to ask, further, why the Admiralty have refused to adopt the recommendations of the Select Committee on National Expenditure and present their accounts to the House of Commons in the modern method. The War Office have accepted that recommendation, and a study of the War Office Estimates reveals the cost of patients in every hospital under the War Office, whereas from a study of the Navy Estimates it is quite impossible to find out if these medical establishments are efficiently managed. The War Office Estimates enable this House to judge whether or not the money is well spent, but the Admiralty have deliberately treated with contempt the recommendations of the Select Committee, made three years ago, requesting the Admiralty to present their Estimates in such a manner that the House would be able to judge whether or not the money was well spent and, by modern methods of accounting, to reveal the true facts to the House. The War Office have carried out that recommendation, not only in the letter, but in the spirit, and in the accounts presented this year and last year the House has been enabled to judge of the actual cost of our fighting forces, whether in Egypt, Mesopotamia, or elsewhere, and by that means to judge whether the country is getting value for the expenditure of that money. Therefore, I ask the Admiralty—and I raise it on this Vote, because it is quite easy to present accounts like the War Office on this subject—whether they intend in the future to adopt this recommendation made by a Select Committee representative of all parties.

The suggestion made by my hon. and gallant Friend the Member for Maidstone (Commander Bellairs), that we might secure economy by amalgamating the naval and military hospital work at certain stations abroad, is one that naturally, at first sight, would appeal to the House, and I will certainly promise to look into it, but, at the same time, I think hon. Members will realise that the conditions of naval and military service and discipline and many of the aspects of their organisation, are so different as not to make it altogether an easy thing to carry out that amalgamation, though I can imagine there may be some stations where a military hospital could provide for a certain limited number of naval patients, and vice versâ. As a matter of fact, with regard to the particular case of Yokohama, I have not only asked for a close investigation as to the cost of that establishment, but also as to the possibility of getting some military establishment elsewhere to deal with patients who at present go to Yokohama, and, at any rate, to that extent I have attempted to forestall the hon. and gallant Member's suggestion. The hon. Member for Greenock (Sir G. Collins) raised a question arising not so much out of this Vote, the very much wider question as to why the Admiralty have not yet seen their way to follow the War Office in adopting the new method of accounting. The hon. Member did not tell the House that the War Office are the only Department which have yet been able to carry out these suggestions. We in the Admiralty are still considering the whole of our system of accounting. We had a Committee presided over by the hon. and gallant Member for Burton (Colonel Gretton), whose Report is at this moment under consideration, and which, I hope, will lead to a considerable simplification of our financial methods and of our accounts. The particular method suggested by the hon. Member was tried on the victualling Vote last year, but it raised a number of difficulties with which I am not altogether familiar at the moment, and, at any rate, we did not find it practicable to carry it on, but we certainly have not given up the idea of examining very carefully the suggestions made by the Committee, with a view to seeing whether they cannot be incorporated in the accounting of the Navy.

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

Fourth Resolution read a Second time.

I beg to move to leave out"£389,000," and to insert instead thereof "£387,000."

I wish to draw attention to two or three items of this Vote which show the sort of thing on which we are spending our money at the present time. There is an item here of expenditure at Osea Island for a coastal motor-boat base, and it may interest the House to know that the base at Osea Island has been given up altogether and has been transferred to Portsmouth. The base at Osea Island was asked for during the War because it was in the middle of the great estuary there, was secluded from observation, and was an ideal place for rapidly developing the coastal motor-boat service, from which we hoped great things at that time. The Admiralty at that time refused to give us Osea Island, and we had to draw our motor-boats up against the pier at Queen-borough, in the Medway, and the Dutch boats coming across from the Hook used to lie alongside on the other side of the pier and, of course, get all the informa- tion they wanted. Later on, when these boats were well known and the Germans were copying them, we bought or rented Osea Island and transferred the base there, and we kept it going for a couple of years after the Armistice, costing a great deal of money, and now we have transferred it to Portsmouth. I do not know on what strategical grounds it has gone to Portsmouth, but, although it has gone, we are still asked for £2,556 for expenditure on civilian labour at Osea. I suppose the Government will inform us that this is for clearing up, but I think it shows a lack of foresight, and the question of Osea Island ought to have been settled two years ago. If Osea Island is the wrong place now, it was wrong last year and the year before. Here is another item showing, I think, the reckless manner in which the Admiralty are spending money on useless purposes to-day—the expenditure of £28,665 on civilian labour for boom defences at Felixstowe and Granton. I can quite see how this happens. The Department that looks after the boom defences is under some retired post-captain, who lives in some secluded wing of the Admiralty, and the matter does not come under the eye of the staff, because if it did I am certain that this expenditure would not be allowed. We do not want boom defences at Granton or Felixstowe, or any other place on the East Coast. The danger zone is not in the North Sea now, as the Admiralty are being continually told from both sides of the House. This is a little Department in the Admiralty that looks after civilians at Felixstowe and Granton, and provides a position for gentlemen who are past their first youth and ask for nothing else than the quiet time and moderate remuneration.

Lastly, I protest strongly against the expenditure of £2,880 on civilian labour at Constantinople. We have no business there at all. I shall take every opportunity of protesting against expenditure on Turkey. It is perfectly true that we are technically at war with Turkey, but fighting with Turkey ceased now three years ago. It is preposterous that we should be spending money on this civilian labour at Constantinople. What on earth are the men doing? Are they manning steamships or keeping up the yacht of the Ambassador, or what is the purpose? If it is local labour in connection with the naval ships then it is not justified. If we cannot afford to carry out our contract with our own unemployed and are cutting down their allowance, we have no right to be spending money in the further ends of the world; such expenditure is utterly unjustifiable. I shall take every opportunity onwards of protesting against this expenditure at Constantinople, Mesopotamia, or any other part of the Middle East, and I only hope hon. Members will support me. To give them that opportunity I move the reduction of £2,000.

10.0. P.M.

I beg to second the Amendment. The total sum asked for in this Vote is £389,000. The War charges amount to £35,000, leaving a balance of £354,000. In 1914 the Estimates for the similar Vote were £115,300. The Government are asking for this big increase on this Vote in comparison with the figures for 1914. I am anxious to know what justification the Financial Secretary will put forward for such a large increase on this particular Vote. I observe that the Vote is for civilians employed on peace services. To-day there must be a large number of our ships lying in harbours with the men having little to do; and the point I am anxious to put is this: why should the Admiralty this year ask the House of Commons for money to pay civilians while it is quite impossible for the Admiralty to find full and active employment for the large number of sailors borne on the Fleet? I think that is a perfectlly fair question to ask the Admiralty, and how they can justify asking this House for such large sums when it is quite impossible for the Fleet to be fully employed after their strenuous time of the last seven years. My hon. and gallant Friend who preceded me dealt with one or two particular items in this Vote. I have no desire to amplify and develop those points, but I am anxious to have an assurance or some explanation from the Financial Secretary to this effect: Why is it that this Vote, excluding the War charges, has increased by 300 per cent., and further, would it not be wise to employ sailors instead of civilians to do the work specified, and see that the latter were set to some more useful purpose?

The hon. and gallant Member is under a misapprehension if he thinks that apart from men on the Reserve, the sailors are kicking their heels without sufficient employment. On the contrary, in the endeavour to reduce expenditure I have been consulting the naval members of the Board as to the possibility of reductions in the naval establishments to-day, and the information I have is that the Navy is cut down already to a minimum in complements and is more likely to be suffering from undermanning than from an excess of men who have nothing to do. Certainly I could not consider that even if sailors could in their spare time do the work which is being done by these civilians who, in a large number of cases are on special work, that the sailors are there who could do that work. I do not think that would be a solution. The hon. Gentleman opposite (Sir G. Collins) compared the present year and 1914 and said the Vote shows a considerable increase. I am afraid that without further inquiry into detail I could not give a complete answer, but generally speaking, there are a good many items left by the War which we hope will be reduced as early as possible, and which have not yet fully shown themselves in this Vote.

The hon. and gallant Gentleman opposite (Lieut.-Commander Kenworthy) put several questions to me. He suggested the Admiralty were lacking in foresight in putting down the sum of £2,500 for the motor boat base at Osea Island in view of the fact that that base is being transferred to Portsmouth. The explanation is a perfectly simple one. When the Admiralty decided on the change of motor base they realised that at the beginning of the financial year there would be a certain portion of the year during which the base would still be in existence, and that, therefore, men would have to be provided for at the Osea base.

I do not think there was then accommodation at Portsmouth. Then as regards Constantinople, that, of course, is a question of high policy into which I could hardly be expected to enter; but so long as there is a naval establishment there, and so long as the Navy have to deal in connection with victualling and a great many other purposes with the civilian population, they of course require interpreters and porters and other people for work which could only be performed by local personnel.

What proportion outside the recognised staff described as civilians are ex-naval men?

I will try to find out, and let the hon. Member know. As regards the booms on the East Coast, I understand that, looking after the booms, keeping them in proper position, does require considerable personnel, which could not be got rid of at once without serious loss to the efficacy of the boom defences themselves. Whether the boom defences can eventually be reduced, and whether that staff can in any measure be diminished, I will look into it by the next Estimate, or before then.

Will the hon. Gentleman say what imaginable use boom defences can be on the East Coast now, and why they are maintained?

No one is more anxious than I am to see that the Navy is in a sound and proper condition, and the last thing I would wish to do is to vote against any expenditure on the Navy. But I do not think the explanation given by my hon. Friend with regard to this £28,000 spent on booms is at all satisfactory. What good can we get by spending £28,000, which is a very large sum, upon a boom defence at Felixstowe? If we were to spend that £28,000 upon a ship or upon a gun, or even upon the wages of additional seamen, I would be with my hon. Friend, but nearly three years after the Armistice to spend that sum upon booms at Felixstowe seems to be a foolish action, and we have had no satisfactory explanation of it. If there are booms there why does it cost £28,000 to maintain them? It is in these directions that economies can be made, and I really do think we ought to have some better explanation upon this sort of expenditure than has been given by my hon. Friend. I hope, therefore, he will be able to postpone this particular Vote, or give some explanation which is satisfactory to the House. My hon. Friend knows it is absolutely necessary at the present moment to economise, and these are the matters upon which we could economise.

I should like to draw attention to another item in this Vote which has not been referred to yet. It is the item of £3,353 for caretakers of minesweepers at Malta. I think that is an item upon which we have a right to get some detailed and special explanation. Why, in the first place, is it necessary to use civilians for that particular duty? Are there not naval ratings at Malta doing little or nothing who could be used for that particular duty? It is the work which, I should have thought, in ordinary cases, naval ratings would be expected to do, and there seems to me no reason why civilians should be employed at all. Then, how many minesweepers have to be looked after for which the Admiralty require £3,353, and what are these minesweepers doing there? Are we going to keep them lying there indefinitely for the next war, or is there to be any limit to the time? I presume they are lying in dock taking up room which might be much better employed. I think we have a right to get a full explanation from the Admiralty and to get a justification of the very large sum that they are asking for this particular purpose. We must consider the sum required for keeping up any particular ship in relation to the value of the ship, and if the sum is too large, we ought to scrap the thing altogether and rely upon converting ships into minesweepers, if at any future time an emergency arises. That has been done before, and can be done again.

I should like to emphasise the point about the booms at Felixtowe and to support the plea of the right hon. Member for the City of London (Sir F. Banbury) for an answer on that point, because Departments have a way with them of keeping up these relics of the War. Whether it is to keep the staff on to look after the relics, I do not know, but this is a very concrete example of the way they keep up a relic of the War in these seemingly useless booms outside Felixstowe. There is a point where you can economise, and I think a Department should really come down to the House with a better explanation of small points than has been given, for there is no use in keeping up a staff to look after booms of that sort, or any relics of the War.

With regard to the minor point raised about the minesweepers at Malta, I think the simple reason why they employ civilians for the unmilitary task of looking after minesweepers is that the Maltese civilian is cheaper that the naval rating. I think they are getting them at 30s. a week or rather less, and the money in question does not represent many men a year to look after these minesweepers, which are of some size and take a certain amount of looking after. On the figures, I am not prepared to say the item is in any sense extravagant. [An HON. MEMBER: "How many minesweepers are there?"] I am not quite sure, but I think four or five. As regards the boom at Felixstowe, it is within the recollection of hon. Members that one of the things realised most acutely at the beginning of the War was the danger of submarines to our naval bases and anchorages, largely because we had not got adequate boom defences, and, after all, if we are to contemplate the possibility of any war at any time, or any form of naval defence, it is essential that very important bases like Harwich should have adequate boom defences in readiness. After all, even if we are not expecting another war with Germany you cannot say that the submarine will in future only operate on one coast and not on another. If we are to keep up an establishment at Harwich or Felixstowe it will certainly require to be enclosed by an effective boom, and we shall have to look after the boom defences of our naval ports.

I do not admit that they are in the wrong places or that these places are entirely free from the submarine menace. Any other enemy might send their submarines to the East Coast, and, therefore, that is not a conclusive argument against taking all the essential precautions in connection with the defence of our naval establishments. We shall, however, be willing to look into the question of the actual personnel looking after these booms in order to see if any further reduction can be made, but I cannot admit that because we are no longer at war with Germany that these naval bases need no protection of this description.

I wish to say a word or two about the hon. Gentleman's explanation of this Vote. This is one of the cases in regard to which we should be at a great advantage if we had an Estimates Committee, because then these Estimates would have been considered quietly and in detail by cross-examination of the officers of the Department concerned, and we should have had a Committee which could have reported whether there was anything of substance in the points which have been raised, and whether this expenditure was absolutely necessary. We have not got such a Committee, and we are not likely to have one, as far as I can see, because the Government have not yet put down a Motion setting up such a Committee.

It is said that this expenditure is necessary because the employment is of a highly technical character. I admit that signallers and telephone operators have to be persons with technical knowledge, but there is in this Vote expenditure upon caretakers, messengers, porters, swimming bath attendants and other classes of employment, and therefore the hon. Gentleman's explanation that these are highly-trained technical men and could not be supplied in any other way is not consistent with his own explanation.

As regards boom defences, no one would question what the Admiralty says about them. If the hon. Member says that boom defences are necessary to defend the country from submarine attacks, nobody would object, but if he has discovered that they are necessary on the East Coast and admits at the same time that we do not know where we may be attacked, then it is the bounden duty of the Admiralty to put boom defences at other vulnerable spots. These services, I observe, are rising in cost, because this item is £10,000 more than it was last year for these services. If this is such a vital service, who can say that next year we shall not have Estimates for other boom defences in order to make us entirely safe from the menace of submarine attacks.

Question put, "That £389,000 stand part of the said Resolution."

The House divided: Ayes, 155; Noes, 63.

Division No. 155.]

AYES.

[10.20 p.m.

Adkins, Sir W. Ryland D.

Greig, Colonel James William

Parker, James

Agg-Gardner, Sir James Tynte

Gretton, Colonel John

Parkinson, Albert L. (Blackpool)

Amery, Leopold C. M. S.

Gritten, W. G. Howard

Pease, Rt. Hon. Herbert Pike

Astbury, Lieut.-Com. Frederick W.

Guest, Capt. Rt. Hon. Frederick E.

Percy, Lord Eustace (Hastings)

Baird, Sir John Lawrence

Hacking, Captain Douglas H.

Perkins, Walter Frank

Baldwin, Rt. Hon. Stanley

Hall, Rr-Adml Sir W. (Liv'p'l.W.D'by)

Perring, William George

Balfour, George (Hampstead)

Hambro, Angus Valdemar

Philipps, Sir Owen C. (Chester, City)

Barnett, Major Richard W.

Hannon, Patrick Joseph Henry

Pickering, Colonel Emil W.

Barnston, Major Harry

Henderson, Major V. L. (Tradeston)

Pollock, Sir Ernest Murray

Beauchamp, Sir Edward

Hennessy, Major J. R. G.

Pownall, Lieut.-Colonel Assheton

Birchall, Major J. Dearman

Hinds, John

Pratt, John William

Boscawen, Rt. Hon. Sir A. Griffith-

Hohler, Gerald Fitzroy

Purchase, H. G.

Bowyer, Captain G. W. E.

Hood, Joseph

Ratcliffe, Henry Butler

Boyd-Carpenter, Major A.

Hopkins, John W. W.

Rees, Sir J. D. (Nottingham, East)

Bramsdon, Sir Thomas

Horne, Edgar (Surrey, Guildford)

Renwick, George

Brassey, H. L. C.

Hotchkin, Captain Stafford Vere

Roberts, Rt. Hon. G. H. (Norwich)

Breese, Major Charles E.

Howard, Major S. G.

Robinson, S. (Brecon and Radnor)

Bridgeman, Rt. Hon. William Clive

Hudson, R. M.

Robinson, Sir T. (Lancs., Stretford)

Briggs, Harold

Hunter, General Sir A. (Lancaster)

Rodger, A. K.

Brown, Major D. C.

Inskip, Thomas Walker H.

Roundell, Colonel R. F.

Bruton, Sir James

James, Lieut.-Colonel Hon. Cuthbert

Rutherford, Sir W. W. (Edge Hill)

Buckley, Lieut.-Colonel A.

Jephcott, A. R.

Samuel, Samuel (W'dsworth, Putney)

Carr, W. Theodore

Jesson, C.

Sanders, Colonel Sir Robert Arthur

Casey, T. W.

Johnson, Sir Stanley

Sassoon, Sir Philip Albert Gustave D.

Cayzer, Major Herbert Robin

Jones, Sir Edgar R. (Merthyr Tydvil)

Scott, A. M. (Glasgow, Bridgeton)

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

Jones, Henry Haydn (Merioneth)

Seddon, J. A.

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Jones, J. T. (Carmarthen, Llanelly)

Shaw, Capt. William T. (Forfar)

Churchman, Sir Arthur

Kidd, James

Sprot, Colonel Sir Alexander

Clough, Robert

King, Captain Henry Douglas

Stanley, Major Hon. G. (Preston)

Coats, Sir Stuart

Lane-Fox, G. R.

Steel, Major S. Strang

Cobb, Sir Cyril

Lewis, T. A. (Glam., Pontypridd)

Stevens, Marshall

Cockerill, Brigadier-General G. K.

Lister, Sir R. Ashton

Sturrock, J. Leng

Colvin, Brig.-General Richard Beale

Lloyd, George Butler

Sugden, W. H.

Curzon, Captain Viscount

Lorden, John William

Surtees, Brigadier-General H. C.

Davies, Thomas (Cirencester)

Lort-Williams, J.

Sutherland, Sir William

Dewhurst, Lieut.-Commander Harry

Lowther, Maj.-Gen. Sir H.C. (P'nrith)

Thomson, Sir W. Mitchell- (Maryhill)

Edwards, Major J. (Aberavon)

Mackinder, Sir H. J. (Camlachie)

Tryon, Major George Clement

Evans, Ernest

M'Lean, Lieut.-Col. Charles W. W.

Waddington, R.

Eyres-Monsell, Com. Bolton M.

Macleod, J. Mackintosh

Wallace, J.

Fell, Sir Arthur

Mason, Robert

Ward, William Dudley (Southampton)

FitzRoy, Captain Hon. Edward A.

Mitchell, William Lane

Weston, Colonel John Wakefield

Foxcroft, Captain Charles Talbot

Molson, Major John Elsdale

Wheler, Col. Granville C. H.

Fremantle, Lieut.-Colonel Francis E.

Moreing, Captain Algernon H.

Williams, Col. Sir R. (Dorset, W.)

Gange, E. Stanley

Morison, Rt. Hon. Thomas Brash

Wills, Lt.-Col. Sir Gilbert Alan H.

Ganzoni, Sir John

Morrison, Hugh

Wise, Frederick

Gardiner, James

Murchison, C. K.

Wolmer, Viscount

Geddes, Rt. Hon. Sir E. (Camb'dge)

Murray, John (Leeds, West)

Wood, Hon. Edward F. L. (Ripon)

Gibbs, Colonel George Abraham

Murray, William (Dumfries)

Worthington-Evans, Rt. Hon. Sir L.

Gilmour, Lieut.-Colonel Sir John

Nall, Major Joseph

Young, E. H. (Norwich)

Giant, James Augustus

Neal, Arthur

Green, Albert (Derby)

Newman, Sir R. H. S. D. L. (Exeter)

TELLERS FOR THE AYES.—

Green, Joseph F. (Leicester, W.)

Nield, Sir Herbert

Colonel Leslie Wilson and Mr.

Greenwood, William (Stockport)

Oman, Sir Charles William C.

McCurdy.

NOES.

Adamson, Rt. Hon. William

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

Richardson, R. (Houghton-le-Spring)

Banbury, Rt. Hon. Sir Frederick G.

Hall, F. (York, W. R., Normanton)

Robertson, John

Barker, G. (Monmouth, Abertillery)

Harmsworth, Hon. E. C. (Kent)

Royce, William Stapleton

Barton, Sir William (Oldham)

Hartshorn, Vernon

Sitch, Charles H.

Benn, Captain Wedgwood (Leith)

Hayday, Arthur

Smith, W. R. (Wellingborough)

Bowerman, Rt. Hon. Charles W.

Hayward, Evan

Spencer, George A.

Bromfield, William

Hirst, G. H.

Swan, J. E.

Brown, James (Ayr and Bute)

Hodge, Rt. Hon. John

Thomson, T. (Middlesbrough, West)

Cairns, John

Hogge, James Myles

Thorne, G. R. (Wolverhampton, E.)

Cape, Thomas

Irving, Dan

Waterson, A. E.

Carter, W. (Nottingham, Mansfield)

John, William (Rhondda, West)

White, Charles F. (Derby, Western)

Collins, Sir Godfrey (Greenock)

Kennedy, Thomas

Williams, Aneurin (Durham, Consett)

Davies, Alfred (Lancs., Clitheroe)

Kenyon, Barnet

Williams, Col. P. (Middlesbrough, E.)

Edwards, C. (Monmouth, Bedwellty)

Lawson, John James

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

Edwards, G. (Norfolk, South)

Lunn, William

Wilson, W. Tyson (Westhoughton)

Finney, Samuel

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

Wintringham, Thomas

Galbraith, Samuel

MacVeagh, Jeremiah

Wood, Major M. M. (Aberdeen, C.)

Gillis, William

Mills, John Edmund

Young, Robert (Lancaster, Newton)

Glanville, Harold James

Morgan, Major D. Watts

Graham, D. M. (Lanark, Hamilton)

Murray, Dr. D. (Inverness & Ross)

TELLERS FOR THE NOES.—

Griffiths, T. (Monmouth, Pontypool)

Norris, Colonel Sir Henry G.

Lieut.-Commander Kenworthy and

Grundy, T. W.

Parkinson, John Allen (Wigan)

Mr. Rose.

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

Ordered, "That the consideration of the

Fifth and subsequent Resolutions be now adjourned."—[ Colonel Leslie Wilson. ]

Fifth and subsequent Resolutions to be considered to-morrow.

Railways [Money]

Resolution reported,

"That for the purposes of any Act of the present Session to provide for the reorganisation and further regulation of railways, and the discharge of liabilities in connection with the possession of railways, and otherwise to amend the Law relating to railways, and to extend the duration of the Rates Advisory Committee, it is expedient to make provision for the payment, out of moneys provided by Parliament—

Resolution read a Second time.

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

I do not intend to raise the question here of the very large sum under paragraph ( a ), because no doubt that will be dealt with by the Committee upstairs, but I should like to ask the right hon. Gentleman, before the House let go of this Motion, to give us some idea of what is to be the cost of ( b ), ( c ), and ( d ), that is, the expenses and remuneration of members of the staff of the tribunals which may be established by the Act, also of the contributions by the Treasury to any pension or superannuation fund; but more particularly some indication of the expenses of the Rates Advisory Committee so long as it is continued in existence by the said Act. Other hon. Members may seek information with regard to ( a ), but that opens such very big questions, which have been fully debated, that the House would occupy its time much more profitably by seeking and commenting on the information which might be given in reply to the question I have asked, because we are all very much interested in the question of the cost of administration, and especially of the new services which are about to be set up. The services which are indicated under the letters ( b ), ( c ), and ( d ), and particularly ( b ) and ( d ), should be subjected to careful but not too prolonged inquiry. I can quite imagine that the tribunals which are going to be set up, particularly the amalgamation tribunal, which is composed of three very distinguished Gentlemen, Sir Henry Babington Smith, Sir William Plender, and Mr. Talbot, K.C., is of a temporary character, and I should imagine its work would not last more than, perhaps, 18 months or two years. I feel confident that those three gentlemen would not develop themselves into a bureaucratic Department, and as time went on get encrusted with layers of barnacles which subsequent Parliaments will find the greatest possible difficulty in removing. I am quite sure some, if not all, of these gentlemen have been giving their services almost without any charge. Their whole objective would be to get through the work as speedily as possible, and to wind up their job as soon as they could. But the other tribunals will undoubtedly partake of a permanent character, and we ought to know from the Minister what forecast he has to give of the probable cost at any rate of the first year of the working of these tribunals. Looking to ( d ), the expenses of the Rates Advisory Committee, that is a permanent new Department of State. The Court of Record means a very large increase on the legal side to the annual expenses. I therefore ask the right hon. Gentleman to give the information on the point I have indicated.

I hope it may be for the convenience of the House if I at once reply to the questions so courteously put by my right hon. Friend. As to the Amalgamation Tribunal, the sum of £25,000 is the estimate mentioned in the White Paper. I can speak with considerable confidence in saying that there is no prospect of that sum being exceeded. With respect to the Rates Tribunal, that is a new body, but it is limited by Clause 17 to a very small staff. The staff is not to exceed a clerk and such other officers and servants (sub- ject to the consent of the Treasury as to number, but not exceeding 10) as they may consider necessary. A very careful estimate has been formed of the cost of that tribunal, and it is put at an outside figure of £15,000 per annum. Both in the case of the £25,000, which is a non-recurring sum, and the £15,000, which is an annual sum, the Bill provides that the monies are to be recovered from the railway companies, so that no direct charge will fall, except temporarily, upon the taxpayers.

Does the cost of the Railway and Canal Commission, which will be maintained for a rather different purpose, come under this Resolution and the scope of the Bill, or does it remain on the Estimates as at present?

The Railway and Canal Commission is maintained for certain purposes, but no new charge created by this Bill has reference to that Commission. The two sums of £25,000 and £15,000 are to be recovered from the railway companies, who have been consulted as to the personnel of the Amalgamation Tribunal, and the costs and the figures I have mentioned have, I understand, their approval. It will be realised that these are very small figures, compared with the enormous sums of money which are involved in the amalgamations and in fixing the rates. With regard to the £15,000 per annum, a very great saving will be effected for the railway companies, and, therefore, for the public, by the fact that by means of this tribunal they will avoid a large measure of Private Bill legislation by individual companies in order to get rates fixed. I hope that in both cases there will be very great economy under the methods proposed by the Bill. The Rates Tribunal could not carry on on anything like so small an Estimate unless it had the right, which it undoubtedly will have, of availing itself of such information as the Ministry of Transport is able to put before it. The Rates Advisory Committee is continued for two purposes only. It is continued with reference to certain temporary duties in fixing charges under the Harbours, Docks, and Piers (Temporary Increase of Charges) Act, and it is also continued for the purpose of dealing with the completion of its work in the classification of goods for the purpose of charges. It is hoped that its duty will soon be accomplished under both these heads, and that there will be a very small charge to the Exchequer. I am informed that the cost of the Railway Rates Advisory Committee up to the present has been in the region of £8,000 per annum. In so far as the personnel of the new Rates Tribunal may be identical with the personnel of the Railway Rates Advisory Committee, there will, of course, be no duplication of the charge, but some saving. The only other question addressed by my right hon. Friend was with reference to the item Contributions by the Treasury to pension or super-annuation fund for officers who were servants of the railway companies and were transferred to the Ministry of Transport. An outside figure for that is £800 per annum, and I suggest that this is a saving to the State. What is intended is that officers who are members of the superannuation or pension funds of existing railway companies shall be kept in benefit in those funds so that they may derive the benefit of the pensions which they would have received if they had remained in the direct service of the railway company. The saving to the State is that they become non-pensionable officers. They are not established, and therefore they will not receive any State pension in the ordinary way.

I understand that we are dealing at present with three bodies, but I am more especially concerned to ask about the Rates Advisory Committee. The Parliamentary Secretary has informed the House that the expenses of that Committee come to about £8,000, but I would like to know how that sum is made up. Personally, I cannot understand how that Committee could have incurred any expense whatever. I serve on one of the Committees of the Ministry of Transport, when it does meet, but its meetings have been postponed some 15 times, so that I am thinking of resigning. Most of the Committees under this Ministry, I believe, are useless farces. I cannot conceive, from my experience, how any expense could be incurred by a Committee such as this which we are considering. As representing no fewer than 4,500,000 of my fellowcountrymen, besides my constituents, namely, the cyclists of Great Britain, I have a special grievance against the Committee. The fares for cycles have been raised time after time, until now they are three or four times pre-War rates. I consider it a great injustice that the democracy of locomotion, if I may so call it, should be penalised in this fashion. I do not want to enlarge on this subject, though it has to do with the Kates Advisory Committee, but I may state the fact, that anyone who wants to take, a bicycle even from Westminster Bridge Station to the next station at St. James's Park, has to pay 1s. I took the deputation to the Ministry of Transport. The Parliamentary Secretary treated us very courteously, and assured us that the matter would be considered. So far it has not been considered at all, and I am wondering what function this Committee is supposed to perform, either in this particular or in any other, and why its continued existence is necessary. I should be very much obliged if either the Parliamentary Secretary or the Minister of Transport would explain more in detail to the House why this sum of £8,000 for expenses has been incurred by this Committee?

A matter that has not yet been mentioned is the payment of the £60,000,000 to the railway companies. When is it to be paid to them? Will it be paid in installments? If there is any dispute between the companies who will adjudicate? Will the grouping tribunal be invited to extend its operations to that length?

No doubt the hon. and learned Gentleman has read the Bill carefully. So have 1. It is my misfortune to be on the Standing Committee which is considering the Bill. There is nothing in the Bill as to how the money is to be distributed. I suppose there is some friendly arrangement to be come to by the companies. The people who find the money have a right to know. In Committee the other day we moved to reduce the sum to £10,000,000. The citizens of my constituency object to paying money for a system of grouping or in connection with a system of grouping. Since we passed the £60,000,000 in Committee the situation has changed. We have been told by the Minister of Labour to-day that the financial situation of the country is so serious that the Government have suddenly discovered that it is necessary to cut down the benefit paid to the poorest class in the community, the unemployed worker. The right hon. Member for the City of London (Sir F. Banbury) was really roused on this matter the other night, and I heard him with great pleasure describing the sacrifices of the railway companies during the War, how they turned over their workshops for the making of munitions, and how this payment of £60,000,000 was really their just due. We accordingly supported the Government in giving the shareholders and the directors £60,000,000. But since that time we have been told that the poorest class of the population, who do not know where to turn for their next meal, are to have their miserable unemployment donation reduced. There is, however, no proposal for reducing the £60,000,000. Many of the unemployed made the same sacrifice as the shareholders of the railways during the War. It is true that if there had been no control the railways could have profiteered and the shareholders would have received greater remuneration. I make that admission and I do not wish in any way to detract from the patriotism and efficiency of the railway directors, according to their limitations. But they ought to make sacrifices as well as other sections of the population. The announcement of the Minister of Labour to-day has come as a cold shock to millions of families in the country. I do not like this policy of always attacking the under-dog. I really think we should reduce this amount. If I am in order, and if the Question has not been put, I would like to move to reduce this sum, not £10,000,000, because that was decided the other day in Committee, but I hope I have made out a case for reducing it from £60,000,000 to £50,000,000.

The Question, "That this House doth agree with the Committee in the said Resolution," has already been put.

This sum of £60,000,000 has been repeated several times, but no explanation has ever been given as to the principle upon which it has been arrived at. This is not the occasion to ask for a full and detailed account as to how this £60,000,000 is to be expended. That will probably arise in Committee upstairs, but I think the House is entitled to some definite explanation as to how the Ministry has reached the amount. The Colwyn Committee suggested a figure of £150,000,000, but we are absolutely in the dark as to how this particular figure of £60,000,000 has been made out. The House would be very ill-advised to agree to any such large sum being paid until there is a definite explanation as to the principle and method by which that amount has been assessed.

I wish to turn to another point, which does not involve such a large expenditure of money. Three Committees are proposed to be set up by the Bill, and their expenses will be authorised by this Resolution. There is the Railway and Canal Commission, which will be retained for certain purposes; a new tribunal, called the Rates Tribunal, will be set up; while the Rates Advisory Committee is to be continued. The Rates Advisory Committee has really accomplished nothing. It was set up to advise as to rates. What rates has it advised upon? Not one! It has never come to grips with the question. It has drawn up a proposed classification of goods, but the whole matter, which affects both the railway companies and the people who use the railways—the traders—is what is the charge to be. The Committee was set up to deal with the rates and it has not advised as to a single rate. I have been informed, and I do not think it will be denied, that the offices of this Committee are absolutely littered and encumbered with papers put in by the railway companies and traders protesting against what the Committee has done. I would ask why continue a Committee, even at a small expense, which has acted in so useless a manner? What we want is a Committee which will come to grips with the question of what the public has to pay and what the companies are to charge. Is this Committee to be continued under another name, called the Rates Tribunal? Are we going to have a repetition of this kind of thing under another name? The Minister should really give some explanation of these different Committees, and I press him to tell the House what he really means in regard to them.

The £60,000,000 has been arrived at on no principle whatever, except that it is considerably less than the amount which should be given to the railway companies. With regard to a point raised by the hon. Member for Central Hull (Lieut.-Commander Kenworthy), I would like to point out that the directors of railway companies get nothing out of this £60,000,000—not one penny—and therefore the question does not arise so far as the directors are concerned. He has also made a point as to, the Government's payments to the unemployed. May I remind him that the vast majority of railway shareholders are people of very small means, who have never during the last seven years received any increase in their dividends, whereas many of the working people during that period—certainly during four or five years of it—were receiving double or treble what they received before the War? If they have spent it all, that is not the fault of the railway shareholders. When this Resolution was being considered in Committee, I was unfortunately interrupted in a speech I was making, and, in regard to some figures which I was then giving from memory, I find my recollection was not absolutely accurate. I take this opportunity of giving the correct figures. I was dealing with a circumstance which must not be forgotten, namely, the assistance given by the railway shareholders to the country during the War, notwithstanding the fact that they received no increment, while businessmen, shipowners, workingmen, and all other classes of people received very great increases, either of wages or of profits. The railway shareholders got nothing, but they helped the Government to carry troops and munitions and aided in carrying on the War. Up to 1918 there was no loss whatever to the Government under the contract they had made with the railway shareholders. In addition to the carriage of troops and material they did certain other things, and I gave an instance in regard to the Great Northern Railway, because I know particularly about that company, though all the companies acted similarly. They made quantities of shells and the actual figures—which are not quite those given by me on the previous occasion—show that they repaired 4,250,000 cartridge cases, and that the average cost of each was 4½d. That is checked by the accountant. At Woolwich the cost of repairing these, including workshop expenses, was somewhere between 7d. and 8d. The company conferred a benefit upon the taxpayer by that fact alone and they conferred a further benefit on the country, because— I do not know this of my own knowledge, but I am so informed—the effect of their repairing these cartridge cases at the lower cost was to cause the Government to investigate the Woolwich accounts and thereby save money. Further, in estimating these expenses there was included by order of the Government such items as materials at cost prices, the usual workshop expenses, and supervision and establishment charges.

11.0 P.M.

In addition to that, we manufactured 124,000 shells, and the average cost was £2 11s. 10d., while the price at Woolwich was £3 8s. 6d. These are facts which have been given to me by our engineer, which I had checked yesterday, and they show that, at any rate, the railway companies did their best in very trying times, but we could not continue to carry on our repairs and keep our line and rolling stock in the condition in which they ought to be if we were employing our men in making shells. We also made gun carriages. In addition to that, at the request of the Government, we sent every available man to the forces, and the consequence of that was that we are very much behind in our repairs. Under these circumstances, in view of the fact that a hostile Committee, the Colwyn Committee, have said that the railway companies might claim up to £150,000,000, can it be said that £60,000,000 is more than ought to be paid?

I do not like to let this Resolution pass in silence after what has been said by the right hon. Member for the City of London (Sir F. Banbury). As a member of the Colwyn Committee, I should be sorry if it was thought that the £60,000,000 is a sum which is being paid solely on account of the claims which were put forward by the railway companies and which were investigated by that Committee. I do not dissent from the right hon. Member as to the work done by the railway companies in dealing with munitions of war. I believe that in that respect, equally with everybody else in the country, they did their bit during the War, but I think that in extending the argument to suggest that because they were engaged on munitions of war they were prevented from maintaining their permanent way is to extend the argument too far. I think something may be said with regard to deferring the maintenance of rolling stock, but I cannot imagine that they were employing the people that would have been engaged in repairing the way on munitions of war.

I said we sent everybody we possibly could to join the Forces, and we could not get the steel rails to repair the permanent way.

The people engaged on shells might very probably have been engaged on rolling-stock, I admit, but not on maintaining the permanent way, and in so far as the railway companies lost men who went to the War, they were only in the same position as everybody else. All I want to say on the general question is this, that if this £60,000,000 was put forward by the Minister as being a sum which was depending solely upon a consideration of the agreement with the railway companies, it is a sum which I should feel bound to oppose, but I look upon this sum of £60,000,000 as being a sum which is being paid not only in respect of any claims which the railway companies have under their agreement, but a sum which is being paid in respect of the general settlement which has been made, both with the railway companies and with the National Union of Railwaymen and the other associated employés. What are we going to get for this sum? Certainly a settlement of the claims of the railway companies, but also a period of industrial peace on the railways. That is the thing that weighs more with me than any other consideration. At a time like the present, when we have the coal and cotton industries out, and the engineering industry threatening, it seems to me that it is worth paying almost any price to get industrial peace for a period of 18 months in the transport system of the country. I only support the sum because I believe it is an integral condition of the payment—that the Government gets its Bill as a whole with not only the provisions for grouping, but also containing the conditions for settlement with the railwaymen. [HON. MEMBERS: "No, no!"] That is my point of view. That is the point of view put forward by the Minister of Transport when he was dealing with this question. This £60,000,000 depends upon the Bill and upon the whole Bill. If I thought that in its passage through the House the provisions affecting industrial peace were going to be dis- turbed I should oppose the payment. I believe that is not the case, and that the Minister will stand by the position which he put before the House, and that in passing this Bill and in paying this sum we shall get this period of industrial peace: therefore I do not contest the matter.

A bargain was made, and the House is aware of the nature of that bargain, and of the guarantees given. In regard to the £60,000,000, the Report of the Colwyn Committee did not, as stated by the hon. and gallant Member for Burton (Colonel Gretton), say that the sum of £156,000,000 was due to the railways, but that their claims might conceivably amount to that sum, plus some other very large items. No one can quite say how some of these items were made up. You estimate it, and allow "so and so" for this, and "so and so" for the other. The Colwyn Committee set out as clearly as could be done an extremely complicated and intricate problem and suggested an agreement. If the House should desire more information I will endeavour to get it, but I do not know that I can say how the £51,000,000 is wholly made up, and I do not see how anybody else could.

As regards the Rates Advisory Committee, my hon. and learned Friend (Major Barnes) said he did not know why it should be paid, as it had not done anything. I think if he and my hon. and gallant Friend (Colonel Gretton) who asked the same question would give me an opportunity of letting them see the Reports the Committee has made, they would see that it has worked with an assiduity which is a model for any Committee. It and its Chairman, Mr. F. Gore-Browne, K.C., have gained the confidence of both traders and railways, and the most whole-hearted tribute is paid on both sides to their industry, tact, and assiduity. I would remind the House that it was a Statutory Committee set up by both Houses to give advice, and without its advice I could not act. They have advised on three very large revisions of the railway rates. They have advised on the whole future, which is embodied in the Bill, for providing elastic rates for machinery—a work which, had they devoted themselves to nothing else, would have justified their existence; and the major portion of the Committee are unpaid.

Will the right hon. Gentleman answer my question specifically as to how the Committee can incur an expense of £8,000?

The Chairman of the Committee has a salary of £5,000, sanctioned by this House and adopted on the Estimates.

The Minister of Transport has very frankly told the House that he cannot suggest any possible basis for the figure of £60,000,000 gross or £51,000,000 net. That is a straightforward statement which, I think, the House will accept, but I cannot refrain from congratulating the right hon. Gentleman in the very excellent bargain which he made with the State in that arrangement. He has got out of payment of at least £20,000,000 by the deal which he made, and he has succeeded very adroitly and has walked round all the other managers and directors of railway companies and got a very excellent bargain for the Government. If he had to produce, details I think the result would be to convince the House that the Minister of Transport upon this occasion, at any rate, has made a bargain to the advantage of the Government. I rise, however, to ask the Minister if he would tell us exactly how many Government Departments are going to be at work in the future in connection with the railways. This Bill is to promote economy in the administration of the railways, and also to bring about Government decontrol. An Amalgamation Tribunal and a Rates Tribunal are to be set up, and we have already a Railway Rates Advisory Committee, the Railway and Canal Commission, the Ministry of Transport, and I noticed the other day in Whitehall a Railway Department of the Board of Trade, making altogether six or seven Government Departments that are henceforth going to interfere in one way or another in the management of railways. I suggest it ought to be possible to amalgamate or abolish some of these Government Departments as part of the policy of decontrol. I do not know why the Railway and Canal Commission continues to operate at all. It is supposed to have some judicial func- tion in hearing appeals from aggrieved traders. Surely the rates tribunal is quite capable of dealing with all matters of that kind without continuing the Railway and Canals Commission. The House ought to know how many of these Departments are going to be got rid of and, generally speaking, how railway administration is going to be carried on.

I confess that I have never heard such an explanation as that which has been given by the Minister of Transport as to how this amount of £60,000,000 has been arrived at. I regard this as a very serious matter, and when the right hon. Gentleman tells us that he cannot give us any details it is lament-able. The best course would have been,

if the railway companies were not satisfied with a reasonable amount, to say that the only real items that could be produced would be the depletion of stores, but with regard to maintenance and all concerned in it, after large amounts have been allowed for the period the railways have been under control, it seems to me that the railway companies have no valid claim to such a large sum of money as that which is proposed. I was astonished when the right hon. Gentleman said that he cannot tell us how this amount has been arrived at.

Question put, "That this House doth agree with the Committee in the said Resolution."

The House divided: Ayes, 143; Noes, 46.

Division No. 156.]

AYES.

[11.20 p.m.

Adkins, Sir W. Ryland D.

Goff, Sir R. Park

Oman, Sir Charles William C.

Agg-Gardner, Sir James Tynte

Grant, James Augustus

Palmer, Brigadier-General G. L.

Ainsworth, Captain Charles

Green, Albert (Derby)

Parker, James

Amery, Leopold C. M. S.

Green, Joseph F. (Leicester, W.)

Parkinson, Albert L. (Blackpool)

Astbury, Lieut.-Com. Frederick W.

Greene, Lt.-Col. Sir W. (Hack'y, N.)

Pease, Rt. Hon. Herbert Pike

Baird, Sir John Lawrence

Greenwood, William (Stockport)

Percy, Lord Eustace (Hastings)

Baldwin, Rt. Hon. Stanley

Greig, Colonel James William

Perkins, Walter Frank

Balfour, George (Hampstead)

Hacking, Captain Douglas H.

Perring, William George

Banbury, Rt. Hon. Sir Frederick G.

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

Philipps, Sir Owen C. (Chester, City)

Barlow, Sir Montague

Hall, Rr-Adml Sir W. (Liv'p'l,W.D'by)

Pickering, Colonel Emil W.

Barnett, Major Richard W.

Hannon, Patrick Joseph Henry

Pollock, Sir Ernest Murray

Barnston, Major Harry

Harmsworth, C. B. (Bedford, Luton)

Pownall, Lieut.-Colonel Assheton

Beauchamp, Sir Edward

Henderson, Major V. L. (Tradeston)

Purchase, H. G.

Birchall, Major J. Dearman

Hennessy, Major J. R. G.

Roberts, Rt. Hon. G. H. (Norwich)

Boscawen, Rt. Hon. Sir A. Griffith-

Hinds, John

Roberts, Samuel (Hereford, Hereford)

Bowyer, Captain G. W. E.

Hood, Joseph

Robinson, S. (Brecon and Radnor)

Boyd-Carpenter, Major A.

Hopkins, John W. W.

Robinson, Sir T. (Lancs., Stretford)

Brassey, H. L. C.

Horne, Edgar (Surrey, Guildford)

Rounded, Colonel R. F.

Breese, Major Charles E.

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

Samuel, Samuel (W'dsworth, Putney)

Bridgeman, Rt. Hon. William Clive

Hotchkin, Captain Stafford Vere.

Sanders, Colonel Sir Robert Arthur

Briggs, Harold

Hunter, General Sir A. (Lancaster)

Sassoon, Sir Philip Albert Gustave D.

Brown, Major D. C.

Inskip, Thomas Walker H.

Scott, A. M. (Glasgow, Bridgeton)

Bruton, Sir James

Jephcott, A. R.

Seddon, J. A.

Buckley, Lieut.-Colonel A.

Johnson, Sir Stanley

Shortt, Rt. Hon. E. (N'castle-on-T.)

Carr, W. Theodore

Jones, Sir Edgar R. (Merthyr Tydvil)

Sprot, Colonel Sir Alexander

Casey, T. W.

Jones, Henry Haydn (Merloneth)

Stanley, Major Hon. G. (Preston)

Cayzer, Major Herbert Robin

Jones, J. T. (Carmarthen, Llanelly)

Steel, Major S. Strang

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

King, Captain Henry Douglas

Sugden, W. H.

Chamberlain, Rt. Hn. J. A. (Birm. W.)

Lane-Fox, G. R.

Surtees, Brigadier-General H. C.

Churchman, Sir Arthur

Lewis, T. A. (Glam., Pontypridd)

Sutherland, Sir. William

Clough, Robert

Lloyd, George Butler

Thomson, Sir W. Mitchell- (Maryhill)

Coats, Sir Stuart

Locker-Lampson, Com. O. (H'tingd'n)

Tryon, Major George Clement

Cobb, Sir Cyril

Lorden, John William

Waddington, R.

Cockerill, Brigadier-General G. K.

Lort-Williams, J.

Wallace, J.

Colvin, Brig.-General Richard Beale

Lowther, Maj.-Gen. Sir H.C. (P'nrith)

Ward, William Dudley (Southampton)

Davies, Thomas (Cirencester)

Mackinder, Sir H. J. (Camlachie)

Weston, Colonel John Wakefield

Dewhurst, Lieut.-Commander Harry

Macleod, J. Mackintosh

Wheler, Col. Granville C. H.

Evans, Ernest

MacVeagh, Jeremiah

White, Col. G. D. (Southport)

Eyres-Monsell, Com. Bolton M.

Mason, Robert

Williams, Col. Sir R. (Dorset, W.)

FitzRoy, Captain Hon. Edward A.

Mitchell, William Lane

Wills, Lt.-Col. Sir Gilbert Alan H.

Forrest, Walter

Molson, Major John Elsdale

Wise, Frederick

Foxcroft, Captain Charles Talbot

Moreing, Captain Algernon H.

Wolmer, Viscount

Fraser, Major Sir Keith

Morison, Rt. Hon. Thomas Brash

Wood, Hon. Edward F. L. (Ripon)

Fremantle, Lieut.-Colonel Francis E.

Morrison, Hugh

Worthington-Evans, Rt. Hon. Sir L.

Gange, E. Stanley

Murchison, C. K.

Young, E. H. (Norwich)

Ganzoni, Sir John

Murray, John (Leeds, West)

Geddes, Rt. Hon. Sir E. (Camb'dge)

Nall, Major Joseph

TELLERS FOR THE AYES.—

Gibbs, Colonel George Abraham

Neal, Arthur.

Colonel Leslie Wilson and Mr.

Gilmour, Lieut.-Colonel Sir John

Newman, Sir R. H. S. D. L. (Exeter)

McCurdy.

NOES.

Adamson, Rt. Hon. William

Bowerman, Rt. Hon. Charles W.

Cape, Thomas

Barker, G. (Monmouth, Abertillery)

Bromfield, William

Carter, W. (Nottingham, Mansfield)

Benn, Captain Wedgwood (Leith)

Brown, James (Ayr and Bute)

Davies, A. (Lancaster, Clitheroe)

Edwards, C. (Monmouth, Bedwellty)

Hodge, Rt. Hon. John

Shaw, Capt. William T. (Forfar)

Finney, Samuel

Irving, Dan

Sitch, Charles H.

Gillis, William

John, William (Rhondda, West)

Smith, W. R. (Wellingborough)

Glanville, Harold James

Kennedy, Thomas

Spencer, George A.

Graham, D. M. (Lanark, Hamilton)

Kenworthy, Lieut.-Commander J. M.

Thomson, T. (Middlesbrough, West)

Gretton, Colonel John

Lawson, John James

Thorne, G. R. (Wolverhampton, E.)

Gritten, W. G. Howard

Lunn, William

Waterson, A. E.

Grundy, T. W.

Morgan, Major D. Watts

Williams, Col. P. (Middlesbrough, E.)

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

Murray, Dr. D. (Inverness & Ross)

Young, Robert (Lancaster, Newton)

Hall, F. (York W.R., Normanton)

O'Grady, James

Hartshorn, Vernon

Parkinson, John Allen (Wigan)

TELLERS FOR THE NOES.—

Hayday, Arthur

Richardson, R. (Houghton-le-Spring)

Mr. T. Griffiths and Mr. Tyson

Hayward, Evan

Rose, Frank H.

Wilson.

Hirst, G. H.

Royce, William Stapleton

Finance [Consolidated Fund]

Resolution reported,

"That it is expedient for the purpose of any Act of the present Session to make provision for the financial arrangements of the year—

Resolution read a Second time.

On a point of Order. I desire to submit that a part of this Resolution, namely, paragraph 3, cannot be taken, if objected to, after 11 o'clock, for the following reason. Standing Order No. 7A says that the proceedings on the Reports of the Committee of Ways and Means and Committees authorising the expenditure of public money (except the Committee of Supply) are exempted from the Standing Order "Sittings of the House." I submit that paragraph 3 is not a Resolution authorising the expenditure of money out of the public funds, and that, therefore, it is not exempted from the provisions of the Standing Order, which prohibits the taking of opposed business after eleven.

I think that paragraph 3 is exactly parallel with what we have in the Local Loans Act. There we have, at the end, a Clause dealing with certain balances, and that has always been taken to be an expenditure of public money imposing a charge on the Exchequer.

Do I understand your ruling to be that the sums referred to in paragraph 3 are in fact sums paid out of public funds?

The Resolution is only needed by reason of the fact that there must be some charge, actual or contingent, on the Exchequer.

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

I should like to have some explanation with re- gard to this matter. Paragraph 3 provides for a sum of £21,650,000 in respect of an advance made to the Royal Commission on Sugar Supplies. Is this an advance on which there will be some return, or do I understand that it represents a loss of this amount?

The hon. and gallant Gentleman ought to have risen at first. I have already put the Question That the House agree. The first Member rising can move an Amendment. The hon. and gallant Gentleman can speak on the main Question.

Perhaps I may concentrate my remarks on zinc concentrates. We are asked, amongst other very large items, coming to some £23,500,000, with an empty Exchequer, for £1,050,000 in respect of advances made by the Board of Trade for the purchase of zinc concentrates and spelter on which we are entitled to more information. This matter was raised late at night when the Government, with scant consideration for the House, brought forward the Vote for this very larger sum in Committee at about 10 minutes to 3 a.m. We have heard that some extraordinary transactions took place in Paris at the time of the Peace Conference, and Mr. William Hughes was particularly successful in pushing the material interests of Australia, for which I should be the last to complain. That is what he was sent to Persia for, and he did it with great success. I heard at the time that amongst other extraordinary transactions we agreed to buy the whole of the zinc output of Australia at the then world price for five years. I asked the hon. and gallant Gentleman in charge of the Resolution about it, and it was like drawing teeth to get the facts. We had to rise again and again. Fortunately we were in Committee, and, few as we were, we eventually got the admission that the last contract for the purchase of zinc and spelter was up in 1930, so it was not five years' zinc output that we bought, but 11 years', and of course since then the price of zinc has slumped down.

I then asked if this referred to the whole of the zinc output. We had the greatest difficulty in getting these facts. We were told it was subject to a maximum of 250,000 tons per annum. In the OFFICIAL REPORT it is put down at 250,000 lbs., but unless I am very much mistaken, the hon. and gallant Gentleman said tons, and I should like that matter cleared up. We ought to have a very full explanation as to why this transaction was entered into. I believe at the time the idea was that we should buy it so that the Germans should not get it. You remember the old lady who used to drink all the liquor in the house so that her husband should not have it. This seems to be a similar case. We bought it at the inflated price of the moment, and we are probably having to sell it back to the Germans for what we can get for it. That is usually the way with these transactions. This is one of several transactions that took place between ourselves and certain of our Allies and the Premiers of the Dominions, and I do not think any of them have really been adequately explained. How are we faced with the little bills? Here is a little bill and the amount is very considerable. Six months ago the Government seemed to be tossing millions about like a juggler throwing his balls, keeping seven, eight, or ten in the air at a time. To-day we have to look at every penny. I hope the hon. and gallant Gentleman will give us a full explanation of this transaction and what our commitments are in the remaining years before 1931.

Knowing something about the zinc trade, it may interest the House to learn what happened before the War. I am engaged in a small enterprise which uses spelter. In 1914 we found it was impossible to buy any quantity beyond about a month's or two months' supplies, and we were not allowed to hold any stock whatever. We could not order more than we required, and we discovered that the whole of the trade was in the hands of the Germans. I do not quarrel at all with the policy of the Government in buying a sufficient supply from Australia to make the spelter trade secure for this country, but I hope they have made a reasonable bargain, and bought it on some sort of a sliding scale which will fall or rise with the fluctuations of the market. That is an ordinary business precaution, and I hope the Government has not neglected the interests of the country. With regard to sugar, I should like to repeat the question I asked in the early hours the other morning, whether this £21,000,000 odd is the termination of our commitments in sugar, or whether there are further losses on the winding up of the Sugar Commission which this country will have to make good. If we are confronted every year for a series of years with a loss similar to that which we are making good now it is a very serious matter, and the country ought to know what our commitments really are.

On this Motion there arise some technical matters in connection with these trading accounts. There will be no reluctance on my part to convey information, and if the hon. and gallant Gentleman (Lieut.-Commander Kenworthy) experienced any difficulty in doing so on a previous occasion it was not due to any reluctance to impart information, but to an incurable habit of relevancy, because these interesting matters relating to trading accounts are not very strictly relevant to the Motion with which we are concerned, a Motion that relates to the Civil Contingencies Fund. But let me hasten to give such information as I can in reply to the questions which have been asked. The zinc bargains are of no recent date. The basis of them was laid down in the early part of the War—in 1916. In so far as the question of the responsibility of this or that Government is concerned, the present Government may consider that its withers on this subject are quite unwrung. The bargain was made under these circumstances. The supply of zinc concentrates and spelter was necessary, of course, for munitions. The sources of supply in Germany and Belgium had equally been cut off by the War. It was necessary to secure what was required for munitions from Australia for that reason, and also to prevent the Australian white metal mines being closed down for the lack of European markets. It was a war bargain made under the pressure of the extreme urgency of war circumstances. In those circumstances contracts were entered into between the British Government and the Australian Zinc Producers' Association, an association which includes, I believe, all the zinc producers in Australia.

There are two contracts, one for the purchase of zinc concentrates and one for the purchase of spelter and refined zinc. The first contract, that for zinc concen- trates, was to the following effect, that for a period of years up to July, 1921, the output of the Australian mines should be taken up to the limit of 250,000 tons at a fixed price, and thereafter, until June, 1930, the total output of the mines should be taken up to a limit of 300,000 tons. Those limits have been very much affected by subsequent events. Owing, I believe, principally to labour legislation in Australia, the output of these mines has been very much restricted, and I believe that a maximum of 200,000 tons is all that will be likely to come forward under these contracts. We have up to the present purchased 576,000 tons odd at a total cost of £1,979,000. Owing to labour difficulties and strikes in Australia, owing to shipping difficulties as regards tonnage, and lastly owing to the very bad state of the market in these commodities, only a very small proportion of that has been either shipped" or sold. The total quantity sold is only 4,972 tons.

I now pass to the spelter contract which is a separate contract. Under that contract we undertook to take for a period of 10 years a maximum quantity of 45,000 tons a year at market prices at the date of delivery, subject to a guaranteed minimum price. Owing to circumstances which have occurred since that contract was entered into little work has been actually done. The market price for this particular commodity has fallen so far that even at a guaranteed minimum it is not worth the producers while to produce the goods. So the result has been that only 4,665 tons have actually been bought at a cost of £179,000 and 3,000 tons have been sold at a small profit. Deliveries under this contract have ceased for the present, and I believe that there is not much prospect of their revival until the market has improved. The desire for information has spread as regards this contract. That is very natural, but I would call the attention of the House to the fact that the information on this subject has been available, and this is by no means the first occasion on which the House has had the opportunity of acquainting itself with the transactions on this particular negotiation. The trading accounts of the zinc concentrates contracts have been published, showing results to 31st March, 1919, and I can give the reference to the paper if hon. Members desire it. Further than that, full accounts for the trading under the spelter contract will be published within the next week, I hope, giving the further trading results under these contracts up to the end of the financial year 1919–1920, at the same time as the trading accounts regarding sugar contracts.

In what we are doing under this Resolution we are doing nothing that affects in any degree either the actual cash position under these trading accounts or the normal processes by which this House exercises its control over such business. The original sums appear either in the Votes of Credit or on Estimates where Estimates are relevant, and the termination of these accounts, besides being submitted for the information of the House in the documents to which I have referred, will come under review in the ordinary and normal course as part of the Appropriation Account to be reviewed by the Public Accounts Committee and subsequently by this House on the report of the Public Accounts Committee. What we are now doing is in no way affecting the cash position or any loss or gain to the taxpayer on these accounts. That is quite apart from our proceedings to-night. What we are doing is this: The purpose of this Resolution is to lead to a Clause in the Finance Bill, and on that Clause there will be full opportunity for discussing the merits of the proposal. The purpose of the Clause, as I explained, is this: The capital of the Civil Contingencies Fund was increased in order that during the period of the Government's trading operations there might be means of providing the necessary money. The Government's trading operations have now come to an end, and we have fortunately arrived at the season at which we can reduce the capital of the Civil Contingencies Fund. The Treasury no longer requires special war powers for providing capital for trading, and it desires to deprive itself of those powers. When the House appreciates that, the proposal should meet with a good deal of sympathy. By rejecting this Motion the House would not in any way increase its control over these special trading accounts. What it would do would be to make it necessary for the Treasury to come back to the House to give it powers to continue for another year, and so to give it special powers which the Treasury no longer needs or desires. In those circumstances, and in view of the very full opportunity which will still be available to the House for considering this particular matter on the Finance Bill, and also as regards those interesting questions in relation to war contracts which have been raised to-night in connection with the ordinary review to which all accounts are submitted in the financial machinery of the year, I recommend this Resolution to the House as a part of that purpose which I believe all Members desire to promote, the termination of special war powers and the return of our financial machinery to that more strictly rigid system of control which is its natural state at ordinary times.

Hon. Members will agree that if anyone could make a proposal appear very simple it would be the Financial Secretary to the Treasury. One would have gathered from his speech that the purpose of the Resolution was to do away with Government trading and to reinforce the powers of the House over finance. One would also have gathered that we had many opportunities of examining that matter. The fact is, however, that here, as in many other cases, the Government are presenting to the House a fait accompli. There is the loss of £21,000,000 on the trading of sugar account, and the hon. and gallant Gentleman presents that to the House in this style—

May I be allowed to make a correction? The amount written off the Civil Contingencies Fund is the amount quoted by the hon. and gallant Member, but, taking into account the amounts that would be realised by the Sugar Commission which would be paid in subsequently to the Exchequer the Government loss would be some smaller sum. I cannot give an exact sum, because of the future realisations; but there would be several millions of such amounts.

I apologise. I remember that the hon. and gallant Gentleman mentioned that there would be some income, but that would be inconsiderable in comparison with the very substantial loss made. The Government comes to the House and says, "If you refuse this Estimate, there is the £21,000,000 gone." So far from it being a bookkeeping matter, Mr. Speaker's ruling has made it perfectly clear that we are imposing a charge on the Exchequer funds of this country, and it is being done at an hour when it is quite impossible for hon. Mem- bers, who have been here for eight or nine hours, really to exercise their function as controllers of finance. If hon. Members are really in earnest in their desire to exercise their authority in examing these Estimates, it is not hyperbole to call it indecent to take the Committee stage at ten minutes past three in the morning, and then to take the Report stage at midnight. Already, this evening we have involved ourselves in the Railways Bill, a Supplementary Estimate of perhaps £30,000,000 or £40,000,000 not in the Budget, and now we shall have to have inevitably another charge that was not originally contemplated. When the thing is done hon. Members will say that they are "Anti-Waste" and will protest against this heavy expenditure, but when the matter is going through and the details are within their grasp, and they have the power to make effective criticism, they are deprived of that by things being brought on in the middle of the night. The Financial Secretary to the Treasury has said that we shall have plenty of further opportunities of discussing this expenditure. That is always what the Government say. "Do not discuss this to-day because the Report stage will be taken to-morrow," or "Do not discuss this on the Report stage because it was so fully discussed on the Committee stage." But shall we really have the opportunity of discussing this enormous loss on sugar, which is due, not to any circumstances arising out of the War, but to the Government's holding a stock of sugar after the Armistice and not foreseeing a very sharp decline in price of that commodity?

If we are to understand whether they are right or wrong, whether they have acted properly or foolishly, we must have the accounts of this Commission before us. It is only by means of those accounts we can find out exactly what has been done. The hon. and gallant Gentleman says we cannot have the accounts now, but that we are to have them later on. I noticed that on an earlier stage of this Bill he told us these accounts would not be available until the Committee stage of the Finance Bill was reached. As it is, the House is not in a position to criticise the work of the Commission or to say whether that work has been well or ill done. Hon. Members who should be the guardians of the public purse are not able to say whether this trading transaction has been carried out as well as possible in the circumstances, or whether it has been carried out wastefully and carelessly—because the Government are not able to show us the account before asking us to pay the bill. This is the course the Government takes in a matter involving 21 millions! Yet this is the Government which has issued a circular asking for a 20 per cent. reduction of expenditure all round; this is the Government which is reducing the unemployment allowance; this is the Government which is pretending to restore to the House the control of finance: this is the Government which is really flouting the House's control of finance, and depriving it of the information to which it is entitled, before it sanctions expenditure of a substantial character.

With regard to the question of spelter and zinc concentrates, I think the House is entitled to a little more information. The hon. and gallant Gentleman says the returns will be presented later on, but I notice he avoided giving us any information as to the loss per ton which has actually taken place in connection with this transaction up to date. Surely he can give us some idea of the approximate loss and tell us if, as we cannot recover our past losses, it is possible to write off the prospective loss? This contract has to run for another nine years and the hon. Gentleman should consider whether it would not be wiser to write off these losses and come to some agreement with the Australian Government, instead of continuing to carry this heavy burden. It may be better policy to take the risk of having a market in the future, but in dealing with a sum like this, all considerations should be carefully taken into account. As it is, we cannot tell how far these figures are bookkeeping figures and how far they represent actual loss. We are entitled to more information, not merely on the spelter contract of 1916, but on the concentrates contract of a later date. Surely the Government must know the loss per ton, the liability for the future, and how they propose to deal with it.

12 M.

I want to ask one question, if the hon. Gentleman will kindly look into the matter and let us have the information at a later stage. The question is: Has all this loss been sustained on a purely trading basis, that is, does it arise from the difference between what the Government paid for the stuff, and what they have sold it at, or is any part due to something being paid out of the trading accounts—for example, in connection with the trading accounts of the Wheat Commission? A subsidy of 25s. a quarter is being paid to British millers. Is any other payment of that character involved? That, of course, will result in the diminution of the profits of the trading account of the Wheat Commission. Is anything of that kind being done in regard to these trading accounts?

On none of the accounts is there anything of the nature of a subsidy, and the losses are purely trading losses.

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

Church of England Assembly (Powers) Act, 1919

I beg to move, which was for the reform of Convocation, the particular Measure now before the House being for the proper representation of the laity in the councils of the Church. The Measure has received the overwhelming support of the National Assembly, which is a popularly elected Assembly and, I think I may say, truly represents the democracy of the Church of England. I am reluctant to enter into any detailed discussion of the Measure, but it is proper that I should say something to indicate quite shortly what the Measure does.

A part of the Measure is necessarily legal machinery. It makes the Parochial Church Council a corporate body. Another group of Clauses deals with the procedure of the Parochial Church Council. The really important Clauses of the Measure are those which give the powers to the Parochial Church Council, which are the real object of the Measure. If hon. Members will refer to Clause 4, they will observe that that confers powers on the Parochial Church Council, first of all, by transferring to the Council the powers hitherto exercised by the Vestry, with two exceptions, which are the power of electing churchwardens and the power of dealing with ecclesiastical charities. The latter matter is provided for in Clause 7, a Clause which was suggested by the Charity Commissioners and has their full approval. The Vestry, I think the House will agree, is an interesting survival, but only a survival, of a bygone age. There was, however, left to it by the Local Government Act some vague power of dealing with what are called the affairs of the Church so far as rural parishes are concerned, all those powers it is proper should now be transferred to this newly constituted body, namely, the Parochial Church Council.

The next part of Clause 4 transfers the powers of the churchwardens to the Parochial Church Council. I am aware that some churchwardens themselves have thought it is a mistake that the churchwardens should be divested of their powers, but I think this Measure will give the churchwardens a new dignity and a new position, because, so far from being perhaps irresponsible and somewhat autocratic officials, they will become ministers who are answerable to a body which is responsible for their election. The third set of powers which are transferred to the Church Council are the powers of the Church Trustees, a body which is not at all familiar to Members of this House, but which was set up under an Act of Parliament many years ago. They are purely powers in connection with the holding of property and the administration of that property in the interests of the Church. That is the chief Clause in the Measure, and that is, I suppose, the Clause which will mostly interest hon. Members. There are other Clauses which deal with certain routine business. They really only concern the parish church as a centre of religious work, and nobody will suggest it is improper that the Church Council should exercise them. Hon. Members will remember that under the machinery of the Assembly (Powers) Act a provision was made that an Ecclesiastical Committee of the Houses of Parliament should consider these Measures, and how far they affect the rights of any of His Majesty's subjects, and should advise the House as to the expediency of passing the Measures. That body was set up, I think, upon the suggestion of my hon. and learned Friend beside me (Sir Ryland Adkins), in order that there might be a body which was composed of impartial members of all parties representing the different points of view of the different great interests in the country. That body has reported to the House in a White Paper in favour of this Measure, and they consider it expedient that this Measure should pass.

Perhaps I may be allowed to refer to three points. One of them, to which I understand my hon. and learned Friend objects, is the power to recover the cost of maintaining closed churchyards from the guardians. That provision is merely to require the Parochial Church Council to do what hitherto the churchwardens have been bound to do, and that is to keep the churchyard simply in a decent condition, to do the necessary repairs, and, having done those repairs, in the interests of the public, to recover the cost from the guardians under a certificate. Those duties will now be performed by the Parochial Church Council instead of by the churchwardens. The second matter to which objection has been taken is in regard to the right of presentation by parishioners, or by persons in trust for parishioners, in the case of an advowson, and it is now provided that where the parishioners have exercised this right in the past as a whole, it shall now be transferred to the Parochial Church Council. Surely in these days it may be regarded as a proper provision that the persons who worship in the church shall in such circumstances as this be first considered in the appointment of the minister who is to serve in their church.

The third matter to which objection has been taken is that the rights of the vestry in the election of churchwardens are diminished. The Assembly was, however, careful to preserve the rights of the Vestry: members of the Vestry, that is to say, the ratepayers, retain their right to join in the election of churchwardens as heretofore, but they are to be reinforced by members of the electoral roll, so that there may be co-operation or reinforcement. I think that is no serious derogation from the rights of the ratepayers. It is quite obvious that in a parish where the ratepayers take a strong view as to the proper person for election as churchwarden they might even in a well-organised parish resort to the meeting in sufficient numbers to make their power and influence felt. That merely gives to the new electorate an interest in the election of their responsible officers. I hope I have said enough to indicate the general effect of the Measure to the House. Members of the Church of England—I am sure I may say this—have cause to feel grateful to Nonconformists for the generous sympathy and interest with which they have followed the proceedings of the Church Assembly. The Church Assembly, on the other hand, has been sincerely anxious to avoid doing anything in this first and important Measure which might affront the political or religious conscience of any member of the Nonconformist churches, and I think I may add this: We have been actuated by a sincere desire to give the laity of the Church that place in the councils of the Church which will enable them to exercise their many and varied gifts for the wider service of humanity, and, we hope, to the greater glory of God.

I should be wanting in respect to the House if I detained it a minute longer than one feels necessary, or is one's duty, in the somewhat unusual circumstances of to-night. I entirely agree with my hon. and learned Friend that it is an unfortunate fact that this matter, which is of great importance in so many respects, should have to be discussed at this hour. In the few remarks which I, with great diffidence, will venture to address to the House, I can assure hon. Members that I have no hostility either to the Measure, nor do I object to that which has been so clearly and courteously put forward by the hon. and learned Gentleman. But this is the first occasion under the Enabling Act in which a Measure of real importance affecting large numbers of His Majesty's subjects has come before this House. One or two Measures have already been passed, Measures important in themselves, but of far less scope and far less concerned with the rights of His Majesty's subjects. I fully reciprocate what the hon. and learned Gentleman has said about the harmonious feeling between the members of the Church and the members of other religious communities, and the few remarks I shall address to the House are addressed, not from the point of view of any religious community, but from the point of view of the ordinary English citizen. However we may describe or analyse the position of the Church of England, it does have a connection with the State as such, and it has relations with His Majesty's subjects unlike any other religious community at this particular time in this country.

This Measure was carefully considered by the Ecclesiastical Committee, and perhaps I may be allowed to say how much we appreciated the courtesy of the members of that Committee, particularly in regard to their willingness to have a conference with the Legislative Committee of the Church Assembly in order that this matter of real importance should have as much discussion as possible under the Regulations of the Enabling Act. I think it is a good precedent that when the Legislative Committee of this and the other House were considering a Measure of such importance such a conference should be held. It came out in the deliberations that this important Measure, the bulk of which does not raise questions as to the specific rights of His Majesty's subjects, did raise some question in respect of Clauses 4 and 13.

I wish first of all to say that the vast bulk of this Measure appears to be purely concerned with the internal life and work of the Church of England, and does not raise the subtle and difficult problems affecting civic matters. I can assure the House that in the discussions with the Legislative Committee it was felt by those who were criticising the Bill that the bulk of the Measure was entirely free from any grounds of such objection, and they joined with their colleagues in cordially supporting it. But here, in the consideration of the first Measure of any magnitude under the enabling Act we were face to face with a very remarkable circumstance, and that is that under the Enabling Act it was not open, and it is not open, to the Ecclesiastical Committee, and they have no power to recommend that part or any part of this Measure should be referred back, and they have only the alternative of referring the whole of it back or approving the whole of it. I am not suggesting that it would be in accord with the Enabling Act that any other body save that of the assembly of the Church of England should have the last word in saying what that Church is to do, and under what Regulations it should come. I am not suggesting that it would be right or proper that the Ecclesiastical Committee should be enabled to put upon the Church of England Amendments, but I do say that it is a most unfortunate thing, and a matter which must lead in the future to grave embarrassment that the Ecclesiastical Committee has not the power to refer back part of the Measure while approving and recommending other parts which may mean that while they recommend and approve the vast bulk of the Measure they are not able to refer back parts.

There were certain provisions for the election of churchwardens now made in most parishes by the ratepayers as a whole. There is here a proposal to dilute that provision by adding members of the Parochial Church Council who may not be living in the parish. Whether that is right or wrong, I will not argue, but that is a matter which does affect the existing rights of His Majesty's subjects. I can well conceive that a matter of that kind might appear to the Ecclesiastical Committee to be a fit subject for reference back to the Church authorities, while that Committee might be only too glad to recommend the rest of the Measure to become law as quickly as possible. In the Clause to which I have referred there is power given to take away from the in- habitants of a parish in certain parishes the right to elect a clergyman, and that is a proposal which does affect the civic rights of some of His Majesty's subjects. It may well happen that there are some persons who, while they may be most anxious to assist the passage of the bulk of the Measure, might desire to have that point referred back. I think it is a pity that in the first Measure of any magnitude presented to this House it was rendered necessary that these points should be raised.

The great argument for the Enabling Act was that it would allow the Church of England to manage its own internal affairs. Another argument for having this summary method of legislation was that it would be used only for those internal affairs and that the civic aspect would have but little concern with what was done. For these reasons I regret that in the first Measure of high consequence which has been presented under this machinery it has been thought right to introduce the proposals to which I have referred, and this course may give the impression that there is a desire to enlarge by means of this shortened process the very powers given in the Measure. I conceive it to be my duty to say that I think it is an error of judgment to have used the very first Measure as a method of extending and bringing within the scope of the enabling Bill any matters of civic rights which were not put into that Act itself at the beginning. As the years pass, as the Enabling Act works, as the Church of England develops its powers of self-government, these difficult questions of the relationship of the Church to the community as a whole must, of course, come forward, but I think it is a great pity that they were raised on this occasion. The discussions in the Ecclesiastical Committee ended in the Measure being recommended to His Majesty after a Division in which 13 approved and 4 voted against the Motion. I am sure that those of my Friends now present who were Members of that Committee will agree with me that that Division was no adequate index of the difference of opinion which existed among those who supported the Measure, in the extremely difficult alternative put before them of having either to recommend it in its entirety or to postpone and for the time being destroy it. In that most unhappy and ill-starred dilemma there were some who voted for recommending the Measure as a whole who would have voted gladly for referring back for further consideration certain parts of it, and particularly those parts of which I am speaking. It is because of this that I venture to appear in the position of one who opposes the passing into law of this Measure, on the ground that it does necessarily trench upon those matters of communal right as distinguished from ecclesiastical machinery, which I think ought not to have been raised on this occasion, and which, as raised, appear to me to be ill-advised and wrong.

My main point is, besides respectfully drawing attention to those matters, to call the attention of the House to the very grave difficulties which are almost certain to arise in other cases so long as the Ecclesiastical Committee is compelled to refer or approve of a Measure as a whole. We know how constantly it happens in this House—particularly with Bills which come here on general grounds, and without the impetus, at once vehement and concentrated, due to a narrow party aspect—that the House, while approving of a part, it may be of a good deal, of the Bill, disapproves of some of it, and in that way it is modified in accordance with public opinion. As a sympathetic spectator of the working of the Enabling Act, and as one who believes it to be his duty, as a member of the Ecclesiastical Committee, to try to be impartial and to avoid all conscious bias, I confidently express the opinion that it is injurious to the Church of England, and a hindrance to the smooth and proper working of these exceptional processes, that there is no power to refer back a part of a Measure while approving, it may be, of most of it. On these grounds I oppose the Motion of my hon. and learned Friend. I am sure the House will understand me when I say that, while I am not going to put the House to the trouble of a formal Division, I think it right, and due to the public and to the importance of the matters concerned, to have said what I have said. I would end as I began, by assuring the House that behind what I say there is no other object than to be absolutely fair both to the great Church of England and to the English people.

I do not rise to offer any opposition to this Measure, but I want to point out that when the Enabling Bill was introduced I opposed in this House, and I did so on such light and information that I then possessed. I do not regret my action, but, having watched its operation with a great deal of interest, I want to say that if that Bill was introduced now I would not pursue the same course. I have come to regard it as a most valuable example of functional devolution, and I have come to hope that that principle might be extended. We have removed from the purview of this House ecclesiastical questions, and I can only wish that the wisdom of this House could find some way by which industrial questions could also be removed and that some body of an analogous character could be set up that could come to some decisions on such questions in the same way that the National Assembly does on ecclesiastical questions, and leave to this House the ratification of those decisions.

I think that the House will accept one word from the supporters of this Motion. From the speech to which we have just listened I find great encouragement. I rejoice that we have converted my hon. and gallant Friend to the necessity of the Enabling Act, and I hope that his conversion will soon be followed by that of the hon. and learned Gentleman who preceded him in the Debate (Sir W. R. Adkins). I can assure the hon. and learned Gentleman that his fears in this case are really unfounded. In the Measure now before the House the Church Assembly has done nothing to interfere with the citizen's rights except in so far as is absolutely necessary for the spiritual efficiency of religion in this country. The point which my hon. and learned Friend made about the ratepayers' right to elect churchwardens simply comes to this, that, in this Measure, the Church people in the parish, whether they are ratepayers or not, shall have the right to co-operate with the ratepayers in the choice of churchwarden. When it is remembered that the churchwardens must necessarily be the executive officers of the Parochial Church Council, that they constitute, with the incumbent, the executive committee of the Parochial Church Council, surely it is only reasonable that the Church people of the parish should, at any rate, have some voice in their election. We do not deprive our Nonconformist or Free Church friends who are parishioners of the right of voting for the churchwardens—

The point I took was not the right of Free Churchmen as such, but the right of those parishioners who do not come within the somewhat restricted franchise of the parochial councils.

Those parishioners who are neither Free Churchmen nor members of the Church of England can have a very small interest in the religious affairs of the parish, but they are not disfranchised by this Measure. They still have the same rights as before, except that the plural vote they had is abolished and all ratepayers have one vote, and one vote only. All that is done of importance in this instance is that Church people who are not ratepayers and who would not otherwise have the franchise are allowed to join with the ratepayers in the choice of churchwardens. I submit that that is not a serious infringement of the rights of the citizens of this country. Surely, that is a legitimate right which Church people may claim, and it does come within the scope of what was claimed for the Enabling Act, and give to the Church of England the chance of managing its own affairs.

Question put, and agreed to.

Resolved,

"That, in accordance with the Church of England Assembly (Powers) Act, 1919, this House do direct that the Parochial Church Councils (Powers) Measure, 1921, be presented to His Majesty for Royal Assent."

Protection of Animals (Scotland) Act (1912) Amendment Bill

Read the Third time, and passed.

The remaining Orders were read and postponed.

It being after half-past Eleven of the Clock, upon Wednesday evening, Mr. SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.

Adjourned at Twenty-four Minutes before One o'Clock.