Skip to main content

Commons Chamber

Volume 144: debated on Monday 11 July 1921

House of Commons

Monday, July 11, 1921

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

Private Business

Cardiff Gas Bill,

Croydon Corporation Water Bill,

Middlesex County Council (General Powers) Bill,

Lords Amendments considered, and agreed to.

Hastings Tramways (Extension) Bill [ Lords ],

Read a Second time, and committed.

Manchester Corporation (General Powers) Bill [ Lords ] (by Order),

Read a Second time, and committed.

Ministry of Health Provisional Order (Taunton Extension) Bill,

Read the Third time, and passed.

Oral Answers to Questions

Questions

Fuel Research

asked the President of the Board of Trade whether, in view of the great interest now being taken by the public in the economical use of coal, he can state what results have been obtained from the researches carried out at the fuel research station at Greenwich; what is the staff at work at the station; and what is the annual outlay in connection with the same?

It is not possible within the limits of an answer to a question to give the results of the research into the national problems which the Fuel Research Station was established to investigate. Papers on certain aspects of the large question of fuel economy have already been issued. They include:—

In view of the importance of these lectures and statements, can the right hon. Gentleman see his way to have them published and circulated?

Of course, I have no objection at all. I do not think it is usual to publish a lecture as an official document, but I will make inquiries.

Has any of this work been done on a commercial scale, or so far only on a laboratory scale?

On a sufficiently large scale to be able to judge of the manufacturing and economic possibilities involved.

Could a short White Paper be published giving roughly the facts of the investigation, for the information of the House?

I think it would be rather hard to ask the author of the paper to make an abstract of it. It was not an official lecture at all. I do not think it would be a good precedent to start the idea that official abstracts should be made of lectures given by private individuals.

I did not mean an abstract of the lecture, but an account of what is being done at this station, which is subsidised by public funds—not a résumé of the lecture, but a résumé of the work.

There is ample information given, or in process of being given—a very full account—and my hon. Friend would be well advised to consult the original authorities.

German Ships (Coal and Manning)

asked the President of the Board of Trade if German ships obtain coal just now at a price equivalent to 20s. per ton and are manned at one-third of the prices paid to the crews of British ships?

Such information as we have goes to show that the cost of coal and of wages on a German ship is much lower than on a British ship, but I am not in a position to give exact figures. I am making further inquiries, and will inform the hon. Baronet of the result.

Butter (Consumption)

asked the President of the Board of Trade what is the average weekly consumption of butter per head of the population during the past six months?

It is estimated to be about 4 ozs., taking imported and home-produced butter together.

Palm Kernels

asked the President of the Board of Trade whether a differential export duty on palm kernels is imposed in territories held under a mandate?

Safeguarding of Industries Bill

asked the President of the Board of Trade whether there is a sufficiency of consular officers to fulfil, without undue inconvenience to traders, the duties cast upon them by Clause 4 and other Clauses of the Safe- guarding of Industries Bill; and, if not, will necessary new appointments be made?

I have every hope that it will be practicable to discharge any such duties adequately without adding to the number of consular officers.

asked the President of the Board of Trade what limits he proposes to set on the terms of reference to Committees set up under Clause 7 of the Safeguarding of Industries Bill to inquire into cases of alleged dumping?

I propose to make a statement on the subject when the Bill comes up for Report.

asked the President of the Board of Trade whether he has formed any estimate as to the cost of the referees to be appointed under the Safeguarding of Industries Bill; and whether they can be dismissed by the Treasury?

Referees will only be appointed if and when their services are required, and it is not therefore possible to form any estimate of the costs that may be involved. There will be no standing appointments, and the question of dismissal, therefore, does not arise.

asked the President of the Board of Trade whether the goods of any class or description referred to in Clause 2 of the Safeguarding of Industries Bill include articles partly manufactured?

Is the right hon. Gentleman aware that the Minister of Health recently stated exactly the reverse?

asked the Financial Secretary to the Treasury whether, in the valuation of articles which have been exported to undergo processes abroad, the duty will be levied by the Board of Trade under Clause 3 of the Safeguarding of Industries Bill on the cost of the transport of the article outward and homeward as well as on the cost of the foreign process?

Duty is leviable in such cases on the difference between the value of the goods when received back in this country and the original value of the goods free on board when exported for further manufacture. The answer to the hon. Member's question is therefore in the affirmative.

Are we to take it then that we are imposing a duty of 33⅓ per cent. on the British shipping industry so far as this matter is concerned?

Barley (Stocks)

asked the President of the Board) of Trade for what purpose is his Department requiring from firms the stocks of barley stored in their warehouses?

It has been decided by the Government that information regarding the amount and distribution within the country of certain important foodstuffs is of sufficient importance to warrant the continuation of part of the inquiries on this subject formerly conducted by the Ministry of Food. After consideration by the various Departments interested in the particulars obtained, it was arranged that the actual collection of the information should be carried out by the Board of Trade, the results being made available for the use of the other Departments.

The right hon. Gentleman has not answered for what purpose these returns are required. Is it for the next war?

Why should the Treasury be put to the expense and inconvenience of getting these returns only to satisfy the somewhat futile curiosity of Government Departments?

It is difficult to strike a happy mean. If we do not get them, we are accused of slackness. If we do, we are accused of extravagance.

Will the right hon. Gentleman apply the Safeguarding of Industries Bill to it?

Glassware Trade (Profiteering)

asked the President of the Board of Trade whether his attention has been called to the Report on the glassware trade prepared by a sub-committee appointed under the Profiteering Acts, in which it is stated that they do not consider profits made by members of the Northern Association of Pressed Glass Manufacturers since the Armistice to have been justified and that the necessity of Government supervision of such associations is urgent; and whether there is any prospect of immediate legislation along the lines recommended by the Committee on Trusts in their Report dated April, 1919?

The answer to the first part of the question is in the affirmative. With regard to the second, I would refer to the answer given on the 30th June to the hon. Member for Wigan.

Questions to Ministers

On a point of Order, several hon. Members whose names have been called are serving on the Railway Committee. Is there any possibility that such Members may have some indulgence and be allowed to have their questions put by someone else?

I think it would be dangerous to make a change without consideration. I will consider the matter, but I doubt whether it is possible to do it.

Peace Treaties

Mixed Arbitral Tribunal

asked the President of the Board of Trade whether the pleadings have been closed so that the Anglo-German Mixed Arbitral Tribunal may hear, without further delay, the case to decide whether British claims, lodged 18 months ago with the Clearing House, for enemy debts in respect of British balances handed during the War by German banks to the German custodian for enemy debts, are to be dealt with under Article 296 or Article 297 of the Peace Treaty?

As the result of discussions which have recently taken place in Berlin between the Controller of the British Clearing Office and the Director of the German Ministry of Reconstruction, the latter has now agreed to credit at once claims of the description referred to under Article 297, and there is therefore no occasion to proceed with a case before the Mixed Arbitral Tribunal.

Upper Silesia

asked the Prime Minister what is the present situation in Upper Silesia; what progress has been made with the disarmament of the insurgents in Upper Silesia; and when it is anticipated that a settlement will be reached with regard to the future of Upper Silesia?

Both the Polish insurgents and the German self-protection forces have been dissolved, and the members of these who have come from Poland and Germany respectively are reported to have evacuated the plebiscite area. The forces crossing the frontiers of Germany and Poland are being disarmed at the instance of the Inter-Allied Commission of Control in Germany and Polish authorities respectively. It is hoped that a settlement with regard to the future of Upper Silesia will be reached at the next meeting of the Supreme Council, the date of which is still uncertain.

German War Criminals (Trial)

asked the Prime Minister whether the Government has now received the official Report of the trials at Leipzig of alleged War criminals on the British list; if so, whether he will lay the same upon the Table, or circulate it with the OFFICIAL REPORT; and will he undertake to give the House an opportunity, before rising, of discussing the matter?

I have been asked to answer this question. Some portions of the Report of the trials referred to have been received and are being translated, and I am preparing a document for the information of the House. As regards the last part of the question, it was stated in answer to a question on the 23rd June last that it was intended to afford such an opportunity if that were the generally expressed desire of hon. Members.

Is not the statement to the effect that it had better be deferred until the results in the case of the French list had been completed?

Is it not a fact that the French and Belgian Governments have withdrawn their representatives from Leipzig owing to the nature of the sentences that have been passed, and is this country prepared to take joint action with our Allies in insisting upon transferring the remainder of the trials to their own countries and this country?

If my hon. and gallant Friend will wait he will find that the next question on the Paper deals with that matter.

asked the Prime Minister whether his attention has been called to the result of the Leipzig trials so far as the French list is concerned; and whether, in view of the derisory nature of the whole proceedings so far, he will confer with our Allies as to the desirableness of transferring the remainder of the trials to their own countries and Britain?

I have been asked to answer this question. As to the first part of it, I have no information beyond what is contained in the newspapers. As to the second part, I have nothing to add to the statement made by my right hon. Friend the Leader of the House on the 29th June last.

Have the Government of France in this matter acted entirely on their own responsibility, without even consulting or informing the British Government, and are we always going to wait for a lead from France before we take action in dealing with Germany?

In answer to the first part of the hon. Member's question, he is as well qualified as I am to draw the necessary inference from the statement which has been made in the House. In answer to the second part of the question, I am not aware that we have waited either on this or on any other occasion.

Do I understand that France has withdrawn from this Leipzig farce without any communication with our Government? If so, cannot we at least do the same?

Whatever action has been taken by France—and I am not in the least adopting the hon. Member's description of it—has been taken without, so far as I am aware, any communication with us.

The hon. Member knows that the answer to that question is in the negative. He ascertained that himself some time ago.

Government Staffs and Offices

Food Control Department

asked the President of the Board of Trade what is the total number of persons employed by the Food Control Department; and what is the total monthly cost of its maintenance?

The total staff of the Food Department had been reduced by 1st July to 1,344, of whom, practically four-fifths are employed on the liquidation of stocks. The present monthly cost is approximately £30,000.

Are the regional and transport officers of the right hon. Gentleman's Department still in being, and, if so, how long are they likely to be continued if there is no work for them to do?

Ministry of Labour

asked the Prime Minister whether he is aware that, on the dissolution of such War-time Ministries as National Service, Food, and Reconstruction, large numbers of those employed sought shelter in the Ministry of Labour: and will he say what effort is being made to bring the Ministry of Labour into line with other Government Departments as regards the displacement of its redundant officials?

I am bound at once to take objection to the implication clearly intended by the use of the phrase "sought shelter in the Ministry of Labour." The staff of the Ministry of Labour had to be increased in November, 1918, in order to provide for the transfer of labour duties from the Ministry of Munitions, the establishment of the Department of Civil Demobilisation and Resettlement, and the institution of the Out-of-work Donation Scheme; and considerable numbers of temporary officers were consequently transferred to the Ministry from other Departments. The staff engaged for these extra duties reached its highest point in May, 1919, and between that date and September, 1920, was reduced by 11,000.

Since then a large increase of staff has been necessary on account of the extension of the Unemployment Insurance Scheme, and the state of unemployment, but this has been engaged on a casual (week-to-week) basis, as I have already stated. Every effort has been made to reduce the staff of the Ministry as quickly as possible, and I may add that the special Investigating Committee presided over by the hon. and gallant Member for the Uxbridge Division, which was appointed last autumn to inquire into the staff and methods of work of the Ministry, found that the staff was not excessive or uneconomical, and in its Report went on to say: "The authorities of the Ministry appear to us to be fully alive to the necessity for economy in carrying cut that policy, and we are especially struck by the continuous reductions which have taken place."

Is the right hon. Gentleman in a position to tell us how many millionaires have sought shelter in the Middle Class Union?

Civil Service (Women)

asked the Lord Privy Seal whether he is taking steps to ensure that time will be granted for a discussion on the admission of women to the Civil Service, regard being had to the Government's promise in this respect made some months ago?

asked the Lord Privy Seal whether he is now prepared to carry out the Government pledge that time would be granted for a Debate on the admission of women to the Civil Service; and is he aware that hardship is being done to many women because the Regulations which have been prepared are not effective till the Debate has taken place?

asked the Prime Minister when a day will be given to debate the Regulations admitting women to the Civil Service; and whether, in view of the fact that the Regulations cannot come into force until after the Debate, an early day can be named?

I regret that it has not yet been found possible to find time for this discussion, but my hon. Friends will appreciate the difficulty of allocating a special day for such a Debate in the present congestion of Parliamentary business. In the circumstances, I would suggest that, if time permit, the discussion should take place on the Treasury Vote, which is to be put down at the earliest possible date. If this course prove impracticable. I will endeavour to arrange for time to be given on one of the remaining Fridays of the Session, but at the moment I cannot make definite arrangements.

Will the right hon. Gentleman consider the advisability of issuing some definite statement on this matter, as many parents of limited means are allowing their children to enter for these examinations when there is no hope of their being selected, and the Civil Service does not in any way lead to the possibility of a job outside the Service?

I do not quite understand the hon. Member's question. The question on the Paper is a request for time to discuss Regulations which are already published. The Regulations are before the public, and parents ought not to make their plans without knowledge of those Regulations.

Most of the schoolmistresses in the London area are still taking children to be trained for the Civil Service examinations.

Ministry of Transport

asked the Lord Privy Seal whether the Cabinet is aware of the feeling in the country that the Ministry of Transport might well be transferred to the Board of Trade or some other Department; and whether he will direct an inquiry to be made as to what economies could be effected by this action?

I would refer my hon. Friend to the replies which I gave on Wednesday last to similar questions on this subject.

Is the right hon. Gentleman aware that I purposely put the question at the end because it was not dealt with the other day? Will the right hon. Gentleman cause inquiries to be made as to the amount of the economy which might be effected by getting rid of his colleague and all his works?

The answer which I gave the other day was that I could not make a statement on the subject until there had been full time for consideration both of the amount of work which remains to be done and of the best means of doing it efficiently. Of course efficiency includes economy.

57.

asked the Minister of Transport (1) the reason for continuing the Development and Civil Engineering Department of the Ministry; what useful purpose it is serving at the present time; whether it has carried out any schemes of public utility during the past two years; when it will be finally abolished;

(2) what steps are being taken to secure an immediate reduction of the staff and expenditure in the Traffic and Mechanical Engineering Department of the Ministry; whether he will give particulars of the class of traffic it controls; and if he will state the salary paid to the director-general of traffic, together with the salaries of other directors?

In order to effect economy of staff made possible by the reduction of work, the Development and Civil Engineering Departments of the Ministry were each reduced by approximately one-half in March last, and the remaining staffs were amalgamated; at the same time considerable savings were also effected in the Traffic and Mechanical Engineering Departments. The details and salaries are shown in the Estimates. The present staffs are engaged in the administration of both permanent and temporary duties of the Ministry. My hon. and gallant Friend will appreciate that, as already stated in an answer given by the Lord Privy Seal on the 22nd ultimo to the hon. and gallant Member for Reigate, a reorganisation is under consideration, including very considerable reductions of staff.

Was the Development and Civil Engineering Department set up to deal with light railway schemes? Has the department directly or indirectly established a single light railway in the country, and does the right hon. Gentleman consider that these two departments justify an annual expenditure of £48,000?

Did the right hon. Gentleman not state in Debate that these staffs were engaged in contemplation of great problems, and if they have been solving such problems, why have we not heard of them?

I did not say that. It was the right hon. Member for Paisley (Mr. Asquith).

I am afraid I shall have to ask for notice of it, as I have not the exact figures to which my hon. Friend refers.

Official Duties (Hours)

asked the Financial Secretary to the Treasury whether the Treasury has any check upon the number of hours in which civil servants are actually engaged upon official duties; and whether, with a view to national economy and the elimination of superfluous officials, the Treasury will instruct the heads of each department to make the actual working hours correspond to those of the banking institutions of the country?

The general control exercised by the Treasury over conditions of employment in the Civil Service applies also to the hours of duty. Every effort is being made to effect as rapidly as possible all feasible reductions in the staffs employed in Government Departments, but I should not regard as practicable a general increase in the hours of work already prescribed for the different classes of the Civil Service.

Will the hon. Gentleman say whether he does not consider the hours for banking institutions as suitable hours for civil servants?

Housing

Rents, Increase

asked the Prime Minister whether, in view of the serious distress that has arisen owing to the great lack of employment, the Government will suspend the provisions of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920, which enables landlords to further increase the rent of working-class houses 10 per cent. in the present month; if he is aware that the organised workers of this country are of opinion that, owing to the reduction that has taken place since the passing of the Act both in wages and the cost of material for repairs, the increase of rent is not justified: and if he will take action in the matter?

I can add nothing to the answer given on Friday, the 1st July, by the Leader of the House in reply to a Private Notice question by the hon. Member for Dartford.

Is the right hon. Gentleman aware that owing to the cutting down of their unemployment benefit many people are unable to pay their rent?

Will the Government at some future date consider the advisability of revoking this Act, in consequence of the modification of wages and other conditions?

Will the right hon. Gentleman take into consideration what would be the economic rents of cottages if the Rent Restriction Acts were abolished before confirming the suggestion of the hon. Member?

I am afraid it would have a very disastrous effect on building operations in the country if we were to repeal the provisions of that Act.

Subsidies

asked the Prime Minister whether the Government have decided that no housing subsidies will be paid in respect of any schemes submitted after the 1st July?

I have been asked to reply to this question. I am not in a position to give an answer to-day, but if the hon. Gentleman will put the question down for Thursday I hope to be able to make a full statement of the decision of the Government on housing.

Greece and Turkey

asked the Prime Minister whether, seeing that the Greek landing at Smyrna was in direct opposition to his pledge of 5th January, 1918, he will say whether this landing has given rise to the present situation and who was responsible for suggesting this landing?

The landing at Smyrna was in no sense a departure from the pledge of January, 1918. That applied only to the parts of Asia Minor and Thrace which were Turkish homelands. Sir Robert Borden, the British Commissioner who investigated the case of Smyrna, reported that the population was Greek in the majority, and not Turk The landing was effected at the request of the British, French and American representatives at the Peace Conference.

asked the Prime Minister whether any threat to Constantinople and the neutral zones of the Straits is anticipated from the Turkish Nationalists; and whether an attempt to negotiate with the Turks will be made before British naval and military forces become involved?

The answer to the first part of the question is in the negative. British forces will not be involved, unless they be deliberately attacked.

Will the right hon. Gentleman answer the last part of the question, whether an attempt will be made to negotiate with the Turks, and could we have some information about the negotiations of General Harington and the Kemalists?

May we ask what is the news? Are we not entitled to hear of this matter?

asked the Undersecretary of State for Foreign Affairs whether he is aware that the Foreign Affairs Committee of the French Chamber has formally reported to the Prime Minister of France that after the Greek refusal of the Allied offer of mediation France should on no account afford the Greek Government, directly or indirectly, military or financial assistance; and whether these words describe the policy of His Majesty's Government in this behalf?

I am aware of the motion to which the hon. Member refers. In reply to the second part of the question, I need only say that His Majesty's Government has maintained, and desires to maintain, an attitude of strict neutrality in this matter.

Is the right hon. Gentleman aware he cannot give too much emphasis to that, because in India and everywhere else we are under the suspicion of favouring the Greeks?

Albania

asked the Prime Minister whether he and Monsieur Clemenceau decided to partition Albania in 1920; whether Mr. Wilson protested, and the policy was then abandoned; whether Albania has since then appealed to the League of Nations to delimit the frontiers between herself and other Members of the League of Nations; whether this impartial tribunal has been denied to her by the Supreme Council at the request of the Allied Governments; and if the former policy of partitioning the country is to be reverted to?

As regards the first two parts of the question, my hon. Friend has only to refer to the Treaty of London of the 26th April, 1915, to find that a partition of Albania was contemplated by that pact. President Wilson never accepted that pact. As regards the third and fourth parts of the question, my hon. Friend is, I think, under some misapprehension. The Albanian Government has approached the League of Nations with an appeal for intervention in certain local differences which have arisen with their neighbours. The Council of the League decided not to intervene pending the discussion by the Ambassadors' Conference of the question of the frontiers, but expressed the hope that, in the meantime, all parties would abstain from provocative action, and that the Ambassadors' Conference would arrive at a decision without delay. As regards the last part of the question, the matter is at this moment being discussed in Paris, and I can, at this stage, make no forecast as to the course which the discussions are likely to follow or the decision which will be arrived at.

Empire Wireless Chain

asked the Prime Minister whether any and, if so, which Dominion Governments have refused to be associated with the Empire wireless chain under State ownership; and what are the declared reasons for such refusals?

37–38.

asked the Prime Minister (1) whether it is intended to constitute a permanent committee to promote intercommunication between the different parts of the Empire to carry on the work of the special committee of the Imperial Conference which is now considering the whole subject of imperial communications;

(2) whether it is the policy of the Government, in co-operation with the Governments of the Dominions and of India, to provide facilities for direct communication by wireless telegraphy between this country and each of the Dominions and with India, without more intermediate stations than are absolutely necessary, in order to reduce costs of transmission as low as possible?

I am not in a position to make any statement upon this subject pending the decisions of the Imperial Conference.

Is it not a fact that considerable dissatisfaction has been expressed by the Overseas Dominions owing to the slowness of progress under State enterprise, as compared with other enterprises in other countries which are not so dependent upon the State?

Prime Minister (Questions)

asked the Prime Minister whether, after the Imperial Conference is over, he will revert to the usual constitutional practice and attend the House regularly at Question time?

I realise that it is a disadvantage that the Prime Minister cannot attend here every day to answer questions; but until there is some considerable reduction in the volume of work falling to the share of the Prime Minister, and which he alone can discharge, I fear that the present arrangements must continue. I may perhaps add that a large number, and, perhaps, even a majority, of the questions addressed to me should, and I say this quite respectfully, be addressed to those of my colleagues whose Departments are more immediately concerned.

Estimates Committee

asked the Prime Minister whether he can expedite the appointment of the Estimates Committee so that at least it may commence its investigations before the House adjourns for the Recess?

Employment Exchanges

asked the Prime Minister whether he is aware that, since their transfer to the Ministry of Labour, Employment Exchanges, which were set up for a limited and specific purpose, have assumed through advisory committees the power of laying down the terms and conditions on which those seeking employment shall or shall not accept the employment offered to them; and whether it is the policy of the Government that such powers shall be exercised by State Employment Exchanges acting through their committees?

No such power has been assumed either by the Exchanges or by the advisory committees connected with them. I explained in my reply to my hon. and gallant Friend on 4th July that, in accordance with special rules made by the Board of Trade in 1913, certain of the juvenile advisory committees, which are voluntary bodies consisting largely of representatives of the local education authorities, have formulated standard conditions for the guidance of the Exchanges in dealing with boys and girls under 18. Apart from this the Exchanges are prepared to deal with any vacancy the terms and conditions of which are not illegal.

May I point out that I asked the Minister of Labour a precise question, and he gave me the same answer. As I think they are acting ultra vires, I am asking the Prime Minister to answer the question now. I do not want the Minister of Labour to answer. It only wastes his time and mine.

asked the Prime Minister whether his attention has been called to the over-staffing of the State Employment Exchanges and the consequent addition to the burden of the taxpayer; if he will ascertain whether temporary Employment Exchanges with a few hundred nominal names on their books have a staff of a dozen or more whole-time persons; and whether, in the interests of the taxpayer, this redundancy of minor Government officials will be put an end to?

With about 3,000,000 persons drawing benefit under the Unemployment Insurance Act the staff of the Divisional Offices and Exchanges in Great Britain is at present 21,052, of whom 13,377 are on week to week engagements and 2,887 subject to one month's notice. The number of the staff can, therefore, be closely adjusted from week to week. Temporary Exchanges have only been opened in districts where they were necessary for the purpose of dealing with the present pressure, and will be closed as soon as unemployment shows an appreciable decrease. As regards Branch Offices, notice of closing has recently been given in a number of cases, and I expect to close a number more at an early date. Notice has also been given to a number of temporary clerks.

Is the hon. Gentleman aware that there are very big staffs with no work to do?

I do not accept that. If the hon. and gallant Member will accompany me to some of the exchanges he will see something of the volume of the work.

Will the hon. Member accompany me to others, and I will show him the reverse?

Is the hon. Member aware that in many districts there are no Employment Exchanges, and that men have to walk miles to register and get their unemployment pay?

If the hon. Member-will give me particular cases, I will look into them.

Is the hon. Member aware that at one Employment Exchange when a man applied for a ploughman they sent him a photographer?

Watek Supply (London)

asked the Prime Minister whether, in view of the present shortage of water and of the fact stated in the Press that there is only three weeks' supply of water remaining for the Metropolis at the present rate of consumption, it is the intention of the Government to take such action as will compel economy generally in the use of water during the present shortage?

I have been asked to reply to this question. I have been in constant communication with the Metropolitan Water Board in regard to the great need for economy in the use of water in consequence of the continued drought and the steps taken by the Board have resulted in an average daily reduction in the week ending 1st July of 37,000,000 gallons below the figure for the corresponding period last year. This is due largely to the assistance of the Press and the ready co-operation of the public. I shall not hesitate to take further action to compel economy, should this be necessary.

Is it a fact, as stated in the Press, that there is only three weeks' supply of water for London if the present shortage continues?

Will the right hon. Gentleman consider the advisability of economising, if economies are necessary, in the direction of shutting the water off from the motor users who have been doing scorching on the road?

Will those members of the public who responded to the appeal of the Water Board not to use hoses in their gardens still have to pay the charges for the hoses?

Is the right hon. Gentleman aware that many roads were being watered on Saturday afternoon?

Considering the shortage of water, will the right hon. Gentleman relax some of the restrictions on licensing?

Ministers' Remuneration

asked the Prime Minister, whether he proposes to take any and, if so, what steps to carry out the recommendations of the Select Committee on the remuneration of Ministers in respect of the classification of offices and the salaries of Ministers?

I would refer the hon. Member to the replies which the Leader of the House gave on Tuesday last to questions on this subject.

Russian Trade Delegation (Constantinople)

asked the Prime Minister whether he has received information that the conspirators at Constantinople included in their plans the sinking of British warships by means of mines; whether the head of the Russian trade delegation in Constantinople, by name Koudich, has lately been in London with a British passport, ostensibly for the purpose of discussing trade with Gospodin Krassin; whether, in view of this person's responsibility as head of the mission for their conspiracy, he has been arrested; whether the Government are now in possession of sufficiently clear evidence that the Russian Soviet Government has, since the signing of the Russian trade agreement, deliberately violated the terms under which they undertook to stop intrigue and interference against British interests or the British Empire, in view of the evidence of the activities of the Russian trade delegation at Constantinople, which have been officially stated to have included a plot for the assassination of the general commanding at Constantinople; whether he is aware that on 23rd March £50,000 was paid in Berlin by Soviet representatives for the purpose of fomenting rebellion in Ireland, and that, subsequent to the signing of the agreement, Gospodin Voronski, the Russian trade representative in Rome, stated that the Soviets had excellent relations with the extensive revolutionary movement in India; that, as the Russian trade agreement was signed on the 16th March last, these acts and statements constitute severally and specifically a breach of the preamble of the agreement; and whether he will call for an explanation of these breaches of the agreement in accordance with Article XIII., as a preliminary to renouncing the agreement, if no satisfactory explanation is forthcoming?

Monsieur Koudich is at present in London, but he does not, of course, possess a British passport. So far as His Majesty's Government is aware this gentleman has committed no offence rendering him liable to arrest. His Majesty's Government will not hesitate to make suitable representations to the Soviet Government as soon as this seems expedient. I have no confirmation of the reports referred to in this question, beyond the information regarding the conspiracy in Constantinople which has already been given to the House.

Is it not a fact that several members of this trade delegation at Constantinople were arrested as directly concerned with this plot which included the assassination of General Harington? If that is the case, how can it be said that Mr. Koudich is not responsible, in view of the fact that he is head of the delegation?

Has the hon. Gentleman any information about £50,000 being paid by the Soviet representative in Berlin to foment rebellion in Ireland?

I have said that I have no confirmation of the reports referred to in the question other than the information regarding the conspiracy in Constantinople which has already been given to the House.

asked the Under-Secretary of State for Foreign Affairs the reason for the arrest and deportation of the Russian trade delegation at Constantinople by the British military authorities and the seizure of the effects and money of the delegation; if he is aware that the members of the delegation were especially picked out for deportation from among the other Russian subjects arrested, including the seven-year-old child of the head of the mission, the parents now being in England; and what proof exists of any plot or conspiracy in which these persons were concerned other than statements by partisans of General Baron Wrangel?

Further information received from General Harington on Saturday confirms the implication of a member of the Russian trade delegation in Constantinople in a widespread plot to which reference has already been made in the House. General Harington has taken such steps as he has considered necessary, and His Majesty's Government have complete confidence in his discretion in the matter. Meanwhile further inquiries are being made. The hon. and gallant Member and the House will realise that daily reports cannot with advantage be given in regard to a plot which has threatened the position of the Allied forces in Constantinople and the life of the Commander-in-Chief himself.

If "a person" with the mission is implicated, why has the whole mission been deported, including the seven-year-old son of Monsieur Koudich, and has the right hon. Gentleman in a previous answer not said that this gentleman has committed no offence?

The whole of the mission has not been deported. In regard to the other part of the question, that is one of the matters which we have left to the discretion of Sir Charles Harington.

If "a person" is implicated, why were nine deported, and, in any case, why were representations not made to Moscow? Would we think of treating any other Power in the same way?

I said in reply to a former question that, if necessary, representations will be addressed to Moscow.

Have the facts recently brought to light in any way disturbed the touching faith of His Majesty's Government in the good faith of the Soviet Government?

Ireland

Lighthouses, Protection

asked the Prime Minister whether he is aware that a statement has recently been issued by the Admiralty that no reliance is to be placed on the fog signals on the Fastnet and other lighthouses on the South-West Coast of Ireland; whether these lighthouses are under the jurisdic- tion of the Trinity House Brethren, who, in turn, are under the jurisdiction of the Board of Trade, and that the Board of Trade has referred the hon. Member for Finsbury to the Solicitor-General for Ireland for information regarding the protection of these lighthouses, who has replied that the Admiralty cannot see their way to protect these lighthouses; that the fog signals were stolen from the Fast-net lighthouse by two boatloads of Sinn Fein rebels, who raided the lighthouse; and, in view of these facts, if the Government can co-ordinate their Department's activities in order to ensure that a suitable garrison is provided for these lighthouses, in view of their immense importance to Atlantic shipping, and the grave danger of a catastrophe occurring should the lights and fog signals be interfered with during thick weather?

I have nothing to add to the reply given by my hon. and learned Friend the Solicitor-General to a similar question on the 7th instant.

Why does the right hon. Gentleman answer for the Board of Trade who are responsible for the lighthouses of the United Kingdom? Is he further aware that I was asking the question as to what steps, if any, the Admiralty are going to take?

Does the right hon. Gentleman realise that the present situation in Ireland prevents the possibility of these questions being properly discussed?

I have done my best to answer the question so far as I am concerned. If the hon. and gallant Gentleman is not satisfied with my answer it would be more helpful if the question were put to other Departments.

Will the right hon. Gentleman represent to the Prime Minister that four different Departments are quarrelling over this lighthouse, and that meantime shipping is interfered with as the fog signals have been stolen?

I can assure my hon. and gallant Friend that there is no quarrel. I am one of those who believe that there will be no further need for a garrison in this particular lighthouse or in any lighthouse.

Proposed Conference

( by Private Notice )asked the Prime Minister whether he can make a statement with regard to the position in Ireland?

I have had a telegram from Mr. De Valera:

"Telegram received. I will be in London for conference on Thursday next."

The telegram which I sent has already appeared in the newspapers.

Disturbances, Belfast

( by Private Notice )asked the Chief Secretary whether he has any statement to make with regard to the tragic happenings in Belfast during the week-end, resulting in twelve persons being shot dead and over one hundred wounded; whether on Sunday Catholic districts were surrounded by Ulster special constables who for many hours swept the streets with machine gun and rifle fire; whether over forty houses of Catholics were set alight and burned out by Unionist mobs under the protection of the special constables; whether it is a fact that for the last week or ten days this force of specials had created a reign of terror in North-East Ulster; whether it it the undisciplined conduct and lawless methods of these specials that have been responsible for recent breaches of the peace in Belfast and district; whether peaceful Catholic citizens in this area are in a state of constant nerve strain and terror because of the conduct of these specials; and whether he will take immediate steps to have this force of special constables disbanded?

I have just received the following report by wire:

"Following the murder of Constable Conlon and the serious wounding of Constables Hogan and Dunne at Raglan Street, Falls Road, at midnight on Friday last serious rioting developed in various places in the City during yesterday. It commenced shortly after noon in Ashmore Street and Conway Street locality, spreading later in the afternoon to Townsend Street and Stanhope Street. The disturbances took the form of extreme activities on the part of Sinn Fein snipers who fired at Unionists and at police from the tops of houses, windows and various vantage points. Fire was returned and all available police turned out and in the districts concerned they were heavily fired on and returned the fire. This firing continued all the evening at intervals. Military armoured cars and armoured cars with a platoon of the Special Constabulary were turned out. During the afternoon and later on in the evening a number of Nationalist quarters, Stanhope Street, Cupar Street, Argyle Street and Ashmore Street, were attacked by civilians said to be Unionists, who set fire to a large number of houses in these areas. Notwithstanding the efforts of the police and fire brigade, a number of houses of both Nationalists and Unionists have been completely gutted. The ascertained casualties up to the present from gun fire are 14 killed and 102 wounded. Last night passed quietly. Order is now being restored, and the position is in hand."

The right hon. Gentleman Sir James Craig leaves to-day for Belfast to throw the weight of his influence upon the side of law and order.

May I ask whether the control of public order and peace in this city is taken out of the hands of the military authorities, and given over to special constables, who are political followers of the right hon. Gentleman the Prime Minister of Ulster (Sir J. Craig)?

No, the statement of the hon. Member is entirely untrue. The great majority of the police in the city of Belfast are members of the Royal Irish Constabulary, and the great majority of them are Irish Roman Catholics. There are a number of special constables in Belfast under regular Royal Irish Constabulary officers and subject to the discipline of that force.

Will the right hon. Gentleman say by whose authority these lorryfuls of constables and others, after the truce had been proclaimed, and after Curfew hours, went into these peaceful localities in the dead of the night, and attacked these people and burned down their houses?

I do not accept the hon. Member's statement. The truce was agreed to on Saturday; it officially became operative at 12 o'clock to-day. Unfortunately, the shooting of a policeman in Belfast on Friday night precipitated one of these deplorable riots, which, I think, tarnish the name of the Northern Capital of Ireland. I assure the House that I have always done and will continue to do all that I can to put down rioting, without regard to the politics or religion of the rioters.

Is it not a fact that during the last week we have repeatedly called attention to the murders, numbering something like 14, all over North-East Ulster, of peaceful citizens who have no connection with any political movement, and that not a single thing has been done to protect the remaining members of the community? Has one of these miscreants in uniform been brought to justice?

In view of the desire now in all parts of Ireland for peace and for the creation of the spirit of goodwill, will the right hon. Gentleman take steps to have some military authority like General Sir Nevil Macready go to the North of Ireland, and devise some plan and take some steps to protect one-third of the community there while left absolutely without protection.

I cannot accept my hon. Friend's premises for a moment. I share with him, and all the world shares, the feeling of relief and hope engendered by the peace proceedings in Ireland, but the police in Ireland remain under the Imperial Government until, under the Government of Ireland Act, they are given over to Northern Ireland and Southern Ireland. I still say that the police are not responsible for these troubles in Belfast, but that it is owing to them that the troubles have terminated as they have.

May I ask— [ Interruption. ] I am not going to be howled down here. This is a serious matter to my constituents and to the Catholics and Protestants of North-East Ulster. In view of the fact that military hostilities between the people and the police have ceased in the rest of Ireland, will the right hon. Gentleman now take steps to withdraw these special constables, and put in their place ordinary Irish constabulary and military, as these special constables are merely politicians, and it is believed by the people that they have committed all these crimes? I must press for an answer.

( Later ): May I ask the Leader of the House a question arising out of public business?

Sittings of the House (Autumn Session)

asked the Lord Privy Seal whether he will take the general sense of the House in regard to the holding of an Autumn Session as an alternative to sitting throughout the summer months?

It is necessary before the House rises to pass through all its stages the Railways Bill. This is the main measure which delays the House rising early in August, but its passage into law cannot be delayed until the Autumn. Under these circumstances I fear there is no alternative but for the House to continue to sit until this Bill is passed, when it is hoped that the House can rise until the beginning of next year, and so avoid an Autumn Session.

Can the right hon. Gentleman assure us that, supposing a Bill be necessary to carry out any result of the negotiations regarding Ireland, we shall not be asked to sit until September to deal with a Bill of that kind?

Royal Navy

Battleships and Cruisers (Designs.)

asked the Lord Privy Seal whether his attention has been called to the recent differences of opinion as to the designs of the new battleships and cruisers, and to the fact that the late and present directors of naval construction have published diverse views in the Press; and whether the Government will follow precedent and appoint a Committee on Designs with members from all branches of the naval service and Lloyds Register to investigate the experience gained during the late War, and report to the Board of Admiralty?

I have been asked to reply to this question. The subject referred to by the hon. Member is too important and technical to be dealt with adequately in a reply to a question. I propose to make a statement on the matter during the discussion on Vote 8.

Does my hon. and gallant Friend understand that there are no technicalities in answering whether a Committee on Designs will be appointed or not?

I shall make a statement on that matter in the course of the discussion of Vote 8.

New Capital Ships (Contracts)

asked the Parliamentary Secretary to the Admiralty when it is proposed to place contracts for the new capital ships in this year's programme; and how many of these are to be dockyard built?

It is anticipated the Admiralty will be in a position to call for tenders about 1st September, 1921. Owing to the length of time and the expense that would be entailed by altering the slips, it has been decided not to build any of these ships in the Naval dockyards.

Canteen Fund (Committee's Report)

asked the Lord Privy Seal when the Report of the Committee dealing with the Canteen Fund will be forthcoming; and whether all moneys expended against this fund up to date are dealt with in the Report?

I have been asked to reply. The Report of the Committee was published this morning and copies are now available at the Vote Office.

Will the hon. and gallant Gentleman kindly reply to the last part of the question?

Coal Production (Outcrops)

asked the Secretary for Mines if he can state the quantity of coal produced from the outcrops of coal seams during the coal stoppage; how many fatal accidents occurred; and if the operations came under the provisions of the Coal Mines Act, 1911?

I have been asked to reply. It is impossible to apply the provisions of the Coal Mines Act to the unauthorised working of out-crops by miners during a stoppage. I have no information as to the quantity of coal so produced during the recent' stoppage. The number of fatal accidents, within the knowledge of the Mines Department, was 35.

Transport

Train Starting System

asked the Minister of Transport whether his attention has been called to the new system of times for starting trains on the London and South Western Railway; and whether, as a convenience to the public, he will cause investigation to discuss how far and in what way such a simplified system can be applied to other trunk railways?

I am aware of the system to which the hon. Member refers, and if it is found to be a convenience to the travelling public it will no doubt be adopted by other railway companies, who may find it suitable to the circumstances of their lines and traffic. It appears to me to be a matter which can best be left to the individual railway companies.

London, Brighton, and South Coast Railway

63.

asked the Minister of Transport (1) whether the London, Brighton, and South Coast Railway Company submitted some months ago a complete scheme for the electrification of their suburban system and their main line to Brighton, Worthing, and Eastbourne to him for his approval; whether he is aware that the scheme showed that electrification would result in sufficient saving of coal and operating expenses to justify the capital expenditure; and whether the financial results of the present electrification are such as to justify immediately proceeding with the electrification of the whole of the suburban system of this company;

(2) whether the time required for carrying into effect the arrangements for grouping the railways must necessarily delay all developments, such as electrification, for several years; whether in view of the grave congestion and the crying need for greater traffic facilities so urgently wanted, the London, Brighton, and South Coast Railway Company would be justified in at once proceeding with its electrification schemes and in raising the necessary capital; how far would this jeopardise them in the capitalisation of the Southern group; whether he can take any steps to secure the necessary work being put in hand?

The electrification scheme of the London, Brighton and South Coast Railway has not been submitted to me for approval, but their proposals have been before me on a request from that company for State assistance in provision of the capital, for which, however, no public funds were available. The scheme has been considered by the Electrification of Railways Advisory Committee, and is dealt with in their Interim Report of the 12th July, 1920 (Stationery Office publication). I am in agreement with their conclusions. The company are fully alive to the importance of proceeding with the electrification of the remaining portion of their suburban system, and at the present time are installing electric equipment up to Croydon, which is a work of considerable size, and when completed will greatly relieve existing pressure. Future extensions, including the electrification of the main line to Brighton and other places, depend upon financial considerations and, far from the grouping of railways unnecessarily delaying such development, I am of opinion that the formation of a Southern Group under the terms of the Railways Bill now before Parliament should assist towards that end.

Newport (Mon.) Station

asked the Minister of Transport whether he has received complaints with reference to the platform accommodation at Newport (Mon.) station; if he is aware that trains for the Western Valley are often too long for the platform and passengers have to get in or out, as the case may be, with great inconvenience and risk to themselves; whether he has been notified of accidents having occurred in consequence and, if so, how many; if he is aware that a claim for damages is now pending against the company; and if he will take steps to have this remedied?

I have received no complaints of the platform accommodation at this station, but an accident has been reported to me by the Great Western Railway Company to a passenger who was attempting to enter the front coach of a train standing on the down bay line, the coach being beyond the end of the platform. No other accidents of a similar character have been reported of recent years, but I will call the railway company's attention to the hon. Member's question. I understand that in the case of the accident I have referred to a claim for damages is being made.

Railways (Financial Position)

asked the Minister of Transport whether, before decontrol in August, he will issue in concise and handy form for the information of the public an exact statement of the present financial position of the railways, especially showing the wage fluctuations since 1914; what increases and what decreases have taken place; and how the present wage compares with pre-War, and also its relation to the Board of Trade index?

As the answer is somewhat lengthy and includes figures, I will, if I may, circulate it in the OFFICIAL REPORT. I may, however, perhaps be permitted to state that the total fall in railwaymen's wages brought about by the sliding scale represents a present saving to the companies of about £15,950,000 per annum, and further reductions are anticipated.

Yes, I think there is a prospect.

The following is the reply promised:

Monthly statements of the receipts and expenditure of the Controlled Railways are issued to the Press, and will continue to be issued for the remainder of control. Any statement of the financial position of the companies based on recent experience would inevitably be misleading, as the figures would be affected by the coal stoppage and the depression in trade, and by the general effect of the Government guarantee. The hon. Member will also realise that while expenditure is falling it is difficult to forecast the exact effect of future fluctuations.

In answer to the last part of the question, a summary of the changes in railwaymen's wages from the beginning of control up to June, 1920, including a statement of the percentage increases granted to various grades, is given in the Report of the National Wages Board (Stationery Office Publication of June, 1920). The successive alterations in War bonus given to men in the traffic grades since the date of that Report have been as follows:

1st July, 1920, increase of 2s. per week.

1st October, 1920, further increase of 2s. per week.

1st January, 1921, further increase of 1s. per week.

1st April, 1921, decrease of 4s. per week.

1st July, 1921, further decrease of 5s. per week.

These increases and decreases were based on a rise or fall in retail prices as indicated by the Ministry of Labour Index Figure. Under the agreement an increase or deduction of 1s. per week in wages for the traffic grades is made for each rise or fall of 5 full points. Each variation of 1s. per week for these grades and the consequential variations for other grades, represent approximately £1,800,000 per annum at present.

London Traffic

asked the Minister of Transport whether he has now received the text of the agreed-on Measure for the better regulation of traffic which it was suggested that the Metropolitan Members of Parliament should evolve; and, in that case, what action does he propose to take with it this Session?

asked the Minister of Transport whether he proposes to take any action to deal with the more urgent aspects of the London traffic problem, on non-contentious and agreed lines if possible, before the end of the present Session?

A Committee of hon. Members representing London constituencies have made valuable suggestions to me as to the lines upon which they think a non-contentious Measure of a limited character might proceed. Consultations with other bodies concerned are in active progress. I cannot say whether it will be possible to get such complete unanimity as to make it possible for the Government to find time this Session for the introduction of a Bill.

Does the right hon. Gentleman not think that something might be done in order to do away with the tremendous congestion in the London streets?

If my hon. and gallant Friend will give me any suggestions, I shall be very grateful for them.

Will the right hon. Gentleman consider the scheme adopted in many cities on the Continent of issuing priority tickets?

Will the right hon. Gentleman consider, with the Leader of the House, the possibility of discussing this very important matter during the autumn?

asked the Minister of Transport whether he is aware of the dangerous conditions which obtain at many of the traffic centres of London, such as Trafalgar Square, Piccadilly Circus, and Hyde Park Corner, owing to the absence of any kind of control as regards the arrangements for passengers wishing to board outgoing omnibuses during the rush hours of the afternoon and evening; and whether it would be possible to arrange for an extension of the queue system of traffic regulation in order to improve the present state of affairs?

This question is receiving careful attention from the Technical Sub-Committee of the Advisory Committee on London Traffic, upon which are representatives of the police and of the operating authorities. The Sub-Committee have under review experience with the existing queues and proposals for the formation of queues at other points, each of which, as the hon. Member will appreciate, requires individual consideration.

Before the right hon. Gentleman replies may I request that he will carefully abstain from any further Regulations of this character, such as that which provides that no bus shall stop in any street until it has got into the next one?

Can the right hon. Gentleman say when the Report of that Committee is likely to be issued; and does he recognise the fact that the hon. Member who has just intervened (Sir J. D. Rees) does not represent a London constituency at all?

The Committee report from time to time. I do not know when this particular matter will be reached, but legislation will be required to set up an authority.

Roads (Sign Posts and Warnings)

asked the Minister of Transport what is the present state of the sign-posting proposals of the Ministry?

A fully illustrated and detailed circular was issued by the Ministry of Transport on the 28th February, 1921, to all highway authorities in England, Wales and Scotland, recommending the adoption of certain standard forms for road direction posts and warning signs. In a subsequent circular of the 9th May, 1921, on the subject of the classification of roads, the highway authorities of England, Wales and Scotland were informed that among the items of grant-earning expenditure to be admitted as costs of improvement and maintenance of first and second class roads would be included the provision and maintenance of road signs and direction posts. While the wholesale replacement of serviceable signs is not advocated in the present state of public finances, the Minister is sure that he can rely on the co-operation of highway authorities in the carrying out of the programme which has been laid before them.

Are any steps being taken to co-ordinate the methods employed by the local authorities throughout the country?

Central European Mines, Limited

asked the Under-Secretary of State for Foreign Affairs whether his attention has been called to the great losses being sustained by the Central European Mines, Limited, a British company, consequent upon the continued sequestration of their property; and whether representations will be made to the Jugo-Slav Government requesting the immediate removal of the sequestrator?

I am aware of the difficulties that have been encountered by the company in question. Representations have already been made to the Government of the Serb-Croat-Slovene Kingdom which I trust will bear fruit.

Unfit Horses (Export)

asked the Under-Secretary of State for Foreign Affairs whether he has yet made satisfactory arrangements with the Belgian Government as to the allegations of cruelty practised upon worn-out horses exported from this country to Belgium; and whether the Foreign Office has now agreed with the Belgian Government to issue joint Regulations and have official inspection to secure humane treatment for all such horses?

The Ministry is trying to arrange with the Belgian Government that all horses intended for butcher meat should be slaughtered in this country, and the carcases, instead of the live animals, exported, but the negotiations have not yet been completed.

asked the Minister of Agriculture whether he is yet in a position to make any statement with regard to the regulations dealing with the traffic in worn-out horses; and, if not, when he expects to be in a position to do so?

I would refer my hon. and gallant Friend to the replies which I gave on the 1st June last to questions put by the hon. Member for Twickenham (Sir W. Joynson-Hicks) and the hon. and gallant Member for North Tottenham (Major Prescott), and on the 4th instant to a question put by the hon. Member for South Kensington (Sir W. Davison).

Passports and Visas

asked the Under-Secretary of State for Foreign Affairs whether he has any official information showing whether any inconvenience has been caused to the Belgian Government owing to the abolition of the visa; and whether he has any information as to the intention of other European countries following Belgium's lead?

Is the right hon. Gentleman aware that the abolition of the visa has meant a considerable increase in tourist traffic to Belgium, with additional money brought into that country?

Why does not the Foreign Office keep abreast of the times upon questions of this kind?

asked the Undersecretary of State for Foreign Affairs when he expects a decision by our Government with regard to the offer from France to abolish the visa between our respective nationals; and whether we are also negotiating with any other European country upon the same important subject?

I regret that I cannot as yet announce any decision, nor at the moment indicate a date by which it may be expected.

Did. not the right hon. Gentleman state, in reply to a previous question of mine some time ago, that, although he was afraid nothing could be done before Whitsuntide, he was hopeful that he would have an announcement to make before the summer holidays, and thereby relieve the enormous inconvenience caused to travellers?

Potato Cake and Flour Machinery

asked the Minister of Agriculture whether large quantities of machinery for the manufacture of potato cake and flour purchased by the Ministry in 1918 are still unsold; what was the cost of this unsold machinery; whether any, and, if so, what, steps are being taken to sell this machinery; and what is the estimated loss on these purchases?

My hon. Friend will find this information in paragraph (21) of the Report of the Comptroller and Auditor-General on Trading Accounts (Cmd. 1368).

Is the right hon. Gentleman aware that is where I did find it, and what is being done about it?

Chilwell Factory

asked the Parliamentary Secretary to the Minister of Munitions what is the present state of affairs at Chilwell factory; whether it still functions and will function; and, if so, for how long and to what end?

As already explained in answer to previous questions, the factory at Chilwell is to be used as one of the chief depots for military stores. It has also been used for the reception of war material, delivered after the Armistice or brought back from France, which has to be examined and classified. Considerable progress has been made with this work, but it will necessarily take a long time to complete.

Disability Pensions

asked the Minister of Pensions whether the medical boards have had instructions from the Ministry of Pensions to cut down disability pensions by 10 per cent. to 20 per cent.?

No, Sir, nor is there any prospect of my right hon. Friend being induced to attempt economy by such means. My right hon. Friend has already made it abundantly clear that he will be no party to the issue of any such instructions.

As this impression has got abroad, will the hon. Gentleman contradict it publicly?

If my hon. and gallant Friend will read the Report, a copy of which he should by now have received, he will see that it has been contradicted by the Committee, over which I had the honour to preside. He will also see, if he reads the returns of the medical boards, over a period, that the changes in assessment have grown steadily less and less; therefore, the story about instructions of this kind is shown to be entirely without foundation.

Is the hon. Gentleman aware there are too many of these reductions already?

India

Franchise (Army Officers)

asked the Secretary of State for India whether, in view of Lord Sinha's assurance of the 26th July, 1920, that the franchise for the Indian Legislative Assembly would be conferred on retired Indian officers of the Indian Army, the necessary steps will be taken to confer the franchise on these officers before the date of the next election?

A question to the same effect was answered last week.

Officers' Pensions

asked the Secretary of State for India whether a decision has now been arrived at on the subject of the additional pension of £100 and £200 a year which it was stated in the India Office Memorandum of the 3rd June, 1920, would be granted to officers of the Indian Army on the supernumerary list who had held high civil appointments?

The matter has been practically settled, and it is hoped to announce the decision in the course of the next week.

Ex-Service Men (Compassionate Pensions)

asked the Minister of Labour whether he can state the approximate number of ex-service men who have been found totally or partially incapacitated after demobilisation and who have been adjudicated by medical boards as not entitled to a pension upon the grounds that the illnesses have not originated from nor have been aggravated by naval or military service; and] whether there is any provision within the existing powers of the Ministry of Labour for compassionate pensions to ex-service men certified as disabled from earning their living although such disablement cannot be traced to their naval or military service?

I have no records from which the information required by my hon. Friend could be obtained, and there is no provision within the existing powers of the Ministry of Labour for compassionate pensions to disabled ex-service men.

Unemployment Benefit (Short Time)

asked the Minister of Labour whether he is aware that the employés in the Royal Arsenal and works throughout Kent are suspended one week in every six in pursuance of the short-time arrangement at present in force; and whether any steps can be taken to prevent these men being deprived of unemployment benefit?

In the circumstances described, the workpeople would ordinarily be entitled to unemployment benefit and no special steps are necessary in order to prevent them from being deprived of this right. I understand that a difficulty has arisen at Woolwich on account of a customary holiday, with pay, on Saturday, 9th July. A test case has been referred to the Umpire in order to obtain an authoritative decision.

That depends on the Umpire. As far as the Ministry are concerned, we shall give it all the expedition possible.

British Ambassadors and Lord Lieutenant

asked the Financial Secretary to the Treasury what are the salaries and allowances of all kinds attached to the posts of British Ambassador to France, Ambassador to the United States, and Lord Lieutenant of Ireland, respectively?

The British Ambassador at Paris receives a salary of £2,500 per annum and an allowance for "frais de representation" of £14,000 per annum. The British Ambassador at Washington a salary of £2,500 per annum and allowance for "frais de representation" of £17,500. In addition, these Ambassadors are provided with furnished Embassy residences and are refunded (within certain limits) the initial cost of an official motor-car. They receive an outfit allowance, on first appointment as Ambassador, of £600. At Paris the grounds of the Embassy are maintained partly from public funds, and a contribution is made towards the excess over pre-War cost of fuel and light.

The Lord Lieutenant of Ireland receives a salary of £20,000 per annum and an outfit allowance on appointment of £3,000 (Irish) (£2,769). He has two official residences, and is provided with an official motor-car maintained at the public expense.

In what year were these large increases made in the allowances to the Ambassadors?

I am afraid I shall have to look that up and communicate with the Noble Lord privately.

Will the hon. Gentleman reduce them according to the reduction in the cost of living?

Greater London (Government)

asked the Minister of Health if he can state what inconvenience the incorporation of Walthamstow, Leyton, Ilford, and other districts would cause to the proposed inquiry into the government of Greater London that will not be incurred by his sanction of the incorporation of Acton; if he is aware that, owing to the apathy of the citizens in many of the urban district councils of Greater London, only about25 per cent. of the electors take an interest in the elections, and that when these public bodies receive the dignity of incorporation greater interest is taken in public affairs by the ratepayers; and will he state his reason for discouraging local authorities from applying for powers to raise their public status?

I have no reason to think that Acton can be differentiated from the other districts mentioned from the point of view of the inconvenience which may be caused by incorporation in the event of an inquiry taking place into the government of Greater London, but, as I have already stated, the case of Acton was disposed of, so far as my Department was concerned, before the question of inquiry had been considered by the Government. I have no definite information in regard to the statement in the second part of the question. There is no foundation for the suggestion in the last part of the question.

Will the right hon. Gentleman say how the incorporation of Walthamstow would interfere with the inquiry into the government of Greater London any more than the other public bodies that are already incorporated will?

Obviously if you are setting up a Commission to inquire into the question of the government of the whole of Greater London, you will naturally not want to do anything to stereotype existing conditions.

May I ask the right hon. Gentleman if Acton's well-earned reward is not an illustration to the apathetic of the ancient adage, "It is the early bird which catches the worm," and on this occasion there was but one worm only?

Will the right hon. Gentleman grant these charters of incor- poration to Walthamstow and the other places?

Day Continuation Schools

asked the President of the Board of Education the number of the local education authorities in England and Wales; and how many of such authorities are carrying out the scheme of day continuation schools under the Education Act of 1918?

There are 145 local education authorities for Part II of the Education Act, 1902, in England and Wales. Day continuation schools on a basis of obligatory attendance, under Section 10 of the Education Act, 1918, are now being carried on by London, West Ham, Warwickshire (at Stratford and at Rugby), and Wiltshire (at Swindon). Young persons resident in Kent but employed in London are attending London schools.

Is the right hon. Gentleman aware that in West Ham, where they have put these day continuation schools in operation, the sons of parents are being penalised by the employers?

Far Eastern and Pacific Policy

United States and British Empire Relations

Prime Minister's Statement.

( by Private Notice )asked the Prime Minister whether he has any statement to make about the position of the Anglo-Japanese Treaty?

When I told the House last Thursday that I hoped to be in a position to make a statement on Pacific and Far Eastern questions to day, I was awaiting, as I explained at the time, replies to conversations which had taken place between the Secretary of State for Foreign Affairs and the representatives of the Governments of the United States, Japan and China, as the result of our discussions in the Imperial Cabinet.

I am very glad to be able to inform the House to-day that the views of the Government of the United States reached me last night, and are extremely satisfactory. The Chinese Government is also favourable. We have not yet had a formal reply from the Government of Japan, but we have good reason to hope that it will be in the same sense. Now that these views have been received, I am glad to be at liberty to inform the House of Commons fully regarding the course which our discussions in the Imperial Cabinet took. I do this with particular satisfaction, because it will show how very valuable a step forward we have been able to take by common consent in the sphere of foreign affairs.

The broad lines of Imperial policy in the Pacific and the Far East were the very first subjects to which we addressed ourselves at the meetings of the Imperial Cabinet, having a special regard to the Anglo-Japanese Agreement, the future of China, and the bearing of both those questions on the relations of the British Empire with the United States. We were guided in our deliberations by three main considerations. In Japan, we have an old and proved Ally. The agreement of 20 years' standing between us has been of very great benefit, not only to ourselves and her, but to the peace of the Far East. In China there is a very numerous people, with great potentialities, who esteem our friendship highly, and whose interests we, on our side, desire to assist and advance. In the United States we see to-day, as we have always seen, the people closest to our own aims and ideals with whom it is for us, not merely a desire and an interest, but a deeply-rooted instinct to consult and co-operate. Those were the main considerations in our meetings, and upon them we were unanimous. The object of our discussions was to find a method combining all these three factors in a policy which would remove the danger of heavy naval expenditure in the Pacific, with all the evils which such an expenditure entails, and would ensure the development of all legitimate national interests of the Far East.

We had, in the first place, to ascertain our exact position with regard to the Anglo-Japanese Agreement. There had been much doubt as to whether the notification to the League of Nations made last July constitutes a denunciation of the Agreement in the sense of Clause 6. If it did, it would have been necessary to decide upon some interim measure regarding the Agreement pending fuller discussions with the other Pacific Powers, and negotiations with this object in view were, in point of fact, already in progress. If, on the other hand, it did not, the Agreement would remain in force until denounced, whether by Japan or by ourselves, and would not be actually determined until 12 months from the date when notice of denunciation was given. The Japanese Government took the view that no notice of denunciation had yet been given. This view was shared by the Secretary of State for Foreign Affairs; but, as considerable doubt existed, we decided, after a preliminary discussion in the Imperial Cabinet, to refer the question to the Lord Chancellor, who considered it with the Law Officers of the Crown, and held that no notice of denunciation had yet been given.

It follows that the Anglo-Japanese Agreement remains in force unless it is denounced, and will lapse only at the expiration of 12 months from the time when notice of denunciation is given. It is, however, the desire of both the British Empire and Japan that the Agreement should be brought into complete harmony with the Covenant of the League of Nations, and that wherever the Covenant and the Agreement are inconsistent, the terms of the Covenant shall prevail. Notice to this effect has been given to the League.

The broader discussion of Far Eastern and Pacific policy to which we then turned showed general agreement on the main lines of the course which the Imperial Cabinet desired to pursue. I have already explained that the first principle of our policy was friendly co-operation with the United States. We are all convinced that upon this, more than upon any single factor, depend the peace and well-being of the world. We also desire, as I have stated, to maintain our close friendship and co-operation with Japan. The greatest merit of that valuable friendship is that it harmonises the influence and activities of the two greatest Asiatic Powers, and thus constitutes an essential safeguard to the well-being of the British Empire and peace of the East. We also aim at preserving the open door in China, and at giving the Chinese people every opportunity of peaceful progress and development.

In addition to these considerations, we desire to safeguard our own vital interests in the Pacific, and to preclude any competition in naval armaments between the Pacific Powers. All the representatives of the Empire agreed that our standpoint on these questions should be communicated with complete frankness to the United States, Japan and China, with the object of securing an exchange of views which might lead to more formal discussion and conference. The Secretary of State for Foreign Affairs accordingly held conversations last week with the American and Japanese Ambassadors and the Chinese Minister, at which he communicated to them the views of the Imperial Cabinet, and asked in turn for the views of their respective Governments. He expressed at these conversations a very strong hope that this exchange of views might, if their Governments shared our desire in that respect, pave the way for a conference on the problems of the Pacific and the Far East.

The views of the President of the United States were made public by the American Government this morning. It is known to the House. Mr. Harding has taken the momentous step of inviting the Powers to a Conference on the limitation of armaments, to be held in Washington in the near future, and he also suggests a preliminary meeting on Pacific and Far Eastern questions between the Powers most directly interested in the peace and welfare of that great region, which is assuming the first importance in international affairs. I need not say that we welcome with the utmost pleasure President Harding's wise and courteous initiative. In saying this I know that I speak for the Empire as a whole. The world has been looking to the United States for such a lead. I am confident that the House will esteem it as an act of far-seeing statesmanship and will wholeheartedly wish it success. I need hardly say that no effort will be lacking to make it so on the part of the British Empire, which shares to the full the liberal and progressive spirit inspiring it.

Let me add only one word as to the part played in these events by the gathering of the Imperial Conference in Downing Street. I venture to say that the action that we have taken could not have been taken in so prompt, effective, and unanimous a fashion but for the intimate personal consultation between the Prime Ministers of the Empire and the representatives of India which this gathering has enabled us to enjoy. We have taken counsel together without reserve. With this result before us, I need not elaborate the inestimable value of that intimate collaboration in the conduct of the Empire's affairs.

May I ask if it is intended, before this Conference takes place, to seek the views of the British House of Commons—the only one so far that has not been consulted—and so give hon. Members an opportunity of expressing an opinion upon the matter? May I also put it to the right hon. Gentleman—[HON. MEMBERS: "Do not answer!"]—that if we do not have an Autumn Session this Conference may take place with no expression of opinion from us?

I understand from the Leader of the House that a Friday was given for discussion upon the subject in both Houses.

In view of so momentous a Conference taking place at some early date, can the right hon. Gentleman say whether he understands that representation to that Conference is to be limited to the representation of the particular Governments?

My right hon Friend had better not press me upon that subject at the present time. We have not yet heard from Japan, and obviously there must be a good deal of interchange of opinion and suggestions between the Governments before I am in a position to make a statement.

In regard to the difficulty of the legal point, as to whether the alliance with Japan was denounced, and which was referred to the Lord Chancellor, may I ask whether the Law Officers of the Crown were unanimous on the point that the Alliance had not been denounced?

The Lord Chancellor consulted the Law Officers before giving his opinion to the Imperial Cabinet.

Would the right hon. Gentleman inform the House and the world in general whether, in these negotiations with reference to the future of the Pacific, China is to be treated as a Sovereign State and her representatives left to give the decision of the Chinese Government without the interference of any other Asiatic Power?

China will he treated as what she is, an independent Power. We made the same communication to the Chinese Government as to the other Governments.

7th Royal Scots

( by Private Notice )asked the Secretary of State for War whether a final decision has been reached to disband the 7th Royal Scots, and, if not, whether he will consent to receive a small deputation before the order is made?

I only received notice of this question since I came to the House. I have not had time to consult my advisers.

I beg to give notice that I will raise the question on Adjournment to-night. Perhaps the right hon. Gentleman will then be able to make a statement?

New Member Sworn

ROBERT GORDON SHARMAN-CRAWFORD, Esquire, for County of Down (Mid Down Division).

Clinical Thermometers Bill

"to regulate the sale of Clinical Thermometers," presented by Mr. BALDWIN; supported by Sir Alfred Mond, Mr. Munro, and Sir William Mitchell-Thomson; to bo read a Second time upon Thursday, and to be printed. [Bill 168.]

Business of the House

Motion made, and Question put,

"That the Proceedings on the Church of Scotland Bill, in Committee of Ways and Means, and on the Second Reading of the Water Undertakings (Modification of Charges) Bill be exempted at this day's Sitting from the provisions of the Standing Order (Sittings of the House)."—[Mr. Chamberlain. ]

The House divided: Ayes, 242; Noes, 48.

Ganzoni, Sir John

Macdonald, Rt. Hon. John Murray

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

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

Mackinder, Sir H. J. (Camlachie)

Remnant, Sir James

Gee, Captain Robert

McLaren, Robert (Lanark, Northern)

Richardson, Alexander (Gravesend)

George, Rt. Hon. David Lloyd

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

Roberts, Sir S. (Sheffield, Ecclesall)

Gibbs, Colonel George Abraham

Macleod, J. Mackintosh

Roundell, Colonel R. F.

Gilbert, James Daniel

McMicking, Major Gilbert

Rutherford, Colonel Sir J. (Darwen)

Gilmour, Lieut.-Colonel Sir John

Macpherson, Rt. Hon. James I.

Samuel, A. M. (Surrey, Farnham)

Glyn, Major Ralph

Magnus, Sir Philip

Sanders, Colonel Sir Robert Arthur

Goff, Sir R. Park

Maitland, Sir Arthur D. Steel-

Sassoon, Sir Philip Albert Gustave D.

Grant, James Augustus

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

Scott, A. M. (Glasgow, Bridgeton)

Green, Joseph F. (Leicester, W.)

Manville, Edward

Scott, Sir Samuel (St. Marylebone)

Greenwood, Colonel Sir Hamar

Marriott, John Arthur Rarsome

Seddon, J. A.

Greig, Colonel Sir James William

Meysey-Thompson, Lieut.-Col. E. C.

Seely, Major-General Rt. Hon. John

Gretton, Colonel John

Mildmay, Colonel Rt. Hon. F. B.

Sharman-Crawford, Robert G.

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

Mitchell, Sir William Lane

Shaw, Capt. William T. (Forfar)

Hacking, Captain Douglas H.

Molson, Major John Elsdale

Simm, M. T.

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

Mond, Rt. Hon. Sir Alfred Moritz

Smithers, Sir Alfred W.

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

Moore, Major-General Sir Newton J.

Sprot, Colonel Sir Alexander

Hamilton, Major C. G. C.

Moreing, Captain Algernon H.

Stanier, Captain Sir Beville

Hannon, Patrick Joseph Henry

Morison, Rt. Hon. Thomas Brash

Stanley, Major Hon. G. (Preston)

Harmsworth, C. B. (Bedford, Luton)

Morris, Richard

Stevens, Marshall

Haslam, Lewis

Morrison, Hugh

Stewart, Gershom

Hennessy, Major J. R. G.

Morrison-Bell, Major A. C.

Sturrock, J. Leng

Henry, Denis S. (Londonderry, S.)

Munro, Rt. Hon. Robert

Sueter, Rear-Admiral Murray Fraser

Herbert, Col. Hon. A. (Yeovil)

Murchison, C. K.

Sugden, W. H.

Hewart, Rt. Hon. Sir Gordon

Murray, Hon. A. C. (Aberdeen)

Sutherland, Sir William

Hills, Major John Waller

Murray, C. D. (Edinburgh)

Taylor, J.

Hinds, John

Murray, Hon. Gideon (St. Rollox)

Terrell, George (Wilts, Chippenham)

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

Murray, William (Dumfries)

Thomson, F. C. (Aberdeen, South)

Holbrook, Sir Arthur Richard

Neal, Arthur

Townshend, Sir Charles Vere Ferrers

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

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

Tryon, Major George Clement

Hopkins, John W. W.

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

Turton, Edmund Russborough

Hunter, General Sir A. (Lancaster)

Nicholl, Commander Sir Edward

Wallace, J.

Hurd, Percy A.

Nicholson, Reginald (Doncaster)

Ward, Col. J. (Stoke upon Trent)

Inskip, Thomas Walker H.

Nicholson, William G. (Petersfield)

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

Jackson, Lieut.-Colonel Hon. F. S.

Norman, Major Rt. Hon. Sir Henry

Ward, William Dudley (Southampton)

James, Lieut.-Colonel Hon. Cuthbert

Norris, Colonel Sir Henry G.

Warner, Sir T. Courtenay T.

Jesson, C.

O'Neill, Major Hon. Robert W. H.

Wheler, Col. Granville C. H.

Johnstone, Joseph

Ormsby-Gore, Hon. William

Williams, C. (Tavistock)

Jones, Sir Evan (Pembroke)

Palmer, Major Godfrey Mark

Williamson, Rt. Hon. Sir Archibald

Jones, J. T. (Carmarthen, Llanelly)

Palmer, Brigadier-General G. L.

Willoughby, Lieut.-Col. Hon. Claud

Kellaway, Rt. Hon. Fredk. George

Parker, James

Wilson, Capt. A. S. (Holderness)

Kerr-Smiley, Major Peter Kerr

Pearce, Sir William

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

King, Captain Henry Douglas

Peel, Col. Hn. S. (Uxbridge, Mddx.)

Wilson, Col. M. J. (Richmond)

Kinloch-Cooke, Sir Clement

Pennefather, De Fonblanque

Wise, Frederick

Lambert, Rt. Hon. George

Percy, Charles (Tynemouth)

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

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

Perkins, Walter Frank

Wood, Sir H. K. (Woolwich, West)

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

Philipps, Gen. Sir I. (Southampton)

Wood, Sir J. (Stalybridge & Hyde)

Lloyd, George Butler

Philipps, Sir Owen C. (Chester, City)

Woolcock, William James U.

Lloyd-Greame, Sir P.

Pilditch, Sir Philip

Worthington-Evans, Rt. Hon. Sir L.

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

Poison, Sir Thomas A.

Yate, Colonel Sir Charles Edward

Lorden, John William

Pownall, Lieut.-Colonel Assheton

Yeo, Sir Alfred William

Loseby, Captain C. E.

Pratt, John William

Young, E. H. (Norwich)

Lowe, Sir Francis William

Prescott, Major W. H.

Younger, Sir George

Lowther, Major C. (Cumberland, N.)

Purchase, H. G.

Lowther, Col. Claude (Lancaster)

Raeburn, Sir William H.

TELLERS FOR THE AYES.—

Lyle, C. E. Leonard

Rankin, Captain James Stuart

Colonel Leslie Wilson and Mr.

M'Donald, Dr. Bouverie F. P.

Raper, A. Baldwin

McCurdy.

NOES.

Asquith, Rt. Hon. Herbert Henry

Hogge, James Myles

Royce, William Stapleton

Banbury, Rt. Hon. Sir Frederick G.

Holmes, J. Stanley

Sexton, James

Barton, Sir William (Oldham)

Irving, Dan

Shaw, Thomas (Preston)

Bonn, Captain Wedgwood (Leith)

Jones, J. J. (West Ham, Silvertown)

Short, Alfred (Wednesbury)

Bottomley, Horatio W.

Kelley, Major Fred (Rotherham)

Spencer, George A.

Bramsdon, Sir Thomas

Kenworthy, Lieut.-Commander J. M.

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

Carter, W. (Nottingham, Mansfield)

Maclean, Nell (Glasgow, Govan)

Thomson, T. (Middlesbrough, West)

Clynes, Rt. Hon. John R.

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

Thorne, W. (West Ham, Plaistow)

Devlin, Joseph

Mills, John Edmund

Waterson, A. E.

Edwards, G. (Norfolk, South)

Morgan, Major D. Watts

White, Charles F. (Derby, Western)

Galbraith, Samuel

Mosley, Oswald

Wignall, James

Gillis, William

Murray, Dr. D. (Inverness & Ross)

Williams, Aneurin (Durham, Consett)

Glanville, Harold James

Myers, Thomas

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

Graham, W. (Edinburgh, Central)

Newbould, Alfred Ernest

Young, Robert (Lancaster, Newton)

Henderson, Rt. Hon. A. (Widnes)

O'Connor, Thomas P.

Hirst, G. H.

Redmond, Captain William Archer

TELLERS FOR THE NOES —

Hodge, Rt. Hon. John

Rose, Frank H.

Colonel Penry Williams and Mr.

Charles Edwards.

Ministry of Health

Provisional Orders (Rotherham and Sheffield Extension) Bill (changed to "Ministry of Health Provisional Order (Sheffield Extension) Bill").

Reported, with Amendments [Provisional Order relating to Rotherham not confirmed; remaining Order confirmed] [Title amended]; Report to lie upon the Table.

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

Selection (Standing Committees)

Standing Committee A

Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had discharged the following Members from Standing Committee A (during the consideration of the Railways Bill (allotted portions)): Major John Edwards, Sir Evan Jones, Colonel Sir Henry Norris, Major Godfrey Palmer, Mr. Raffan, and Sir John Randies; and had appointed in substitution: Major Barnes, Major Cope, Mr. Mason, Mr. Matthews, Lieut.-Colonel Nall, and Mr. Waddington.

Standing Committee C

Sir SAMUEL ROBERTS further reported from the Committee; That they had discharged the following Member from Standing Committee C (added in respect of the Corn Production Acts (Repeal) Bill)): Mr. Cautley; and had appointed in substitution: Lieut.-Colonel Royds.

Reports to lie upon the Table.

Orders of the Day

Church of Scotland Bill

As amended ( in the Standing Committee ) considered.

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

I addressed the House at some length upon the Second Reading of this Bill, and the arguments against the Measure were very fully dealt with by my right lion. Friend the Member for the City of London (Mr. Balfour) and my hon. Friend the Solicitor-General for Scotland. Thereupon the Bill was read a Second time without a Division. It then went upstairs. The Committee stage occupied less than 20 minutes, and there are no Amendments upon the Report stage. In these circumstances it seems to me that it would be not only superfluous, but intrusive were I to delay the House by making a formal speech on the Third Reading. I have no intention of doing so. But I cannot refrain from utilising this occasion to pay a brief and, I well know, a wholly inadequate tribute to the man to whom more than to any other the present position of this Bill is due, and who, since this Measure was last discussed on the Floor of this House, has crossed the great frontier.

This is not the time or place to appraise the statesmanship of Lord Balfour of Burleigh. I am not equal to the task, and in any event I should probably strain to the breaking point the leniency of the Chair were I on this occasion to make the endeavour. But I wish to bear testimony to what I know, namely, the tireless energy and the profound conviction with which he devoted himself to the task of securing ecclesiastical union in Scotland. It has been my great privilege to be in constant association with him throughout these last years, and I can testify that by speech, by pen, and by personal interview and influence, he inspired and even directed this movement. No trouble was too great, and no journey was too long, if it were so that a further step might be taken in consequence of that trouble, or that journey. Indeed it is not too much to say that to build the fabric of church union in Scotland upon a sure and safe foundation was the governing thought I had almost said the master passion, of his riper years.

To him the task was not only congenial, but it was sacred, nay sacramental. To it he brought a transparent sincerity, a virile energy and a wealth of enthusiasm which very few can emulate and which none can fail to admire. It was little short of a tragedy, from a merely human point of view, that he should be cut off just as his hopes were fructifying, and his work was being crowned with success. We remember well his familiar figure in the Gallery yonder on the occasion of the Second Reading of this Bill. To-day his place is empty, and his life work is done. Is it not for us to carry on and complete the work to which he devoted so much of his life? The work which he has accomplished will endure long after much that we have done will have been clean forgotten. To-day we-think with gratitude and with pride and affection of a great Scotsman and his single-hearted devotion to the public service. The thought of it I am convinced will sweeten and hallow the atmosphere of the Debate this afternoon.

I have not throughout the discussion of this Bill broken silence on its merits, and I do not propose to do so an the present occasion. But I cannot allow the opportunity to pass without adding a sentence or two to the tribute which the Secretary for Scotland has paid, and justly paid, to the great public services—not only or mainly in regard to this particular matter, but in regard to everything for a generation past affecting Scottish life, Scottish education, and the progress of Scotland in the largest and widest sense—of my old friend and almost life-long political opponent Lord Balfour of Burleigh.

After sitting in this House for over 30 years as a Scottish representative, perhaps I may be allowed to identify myself with Scottish opinion and feeling, and to say that he was in many ways what those of us who love Scotland like to regard as a typical Scotsman. He was endowed with qualities physical, intellectual and moral which comparatively few of the most gifted and fortunate of his fellow countrymen possess in the same degree. They were qualities which in their union peculiarly fitted him to be the spokesman and representative of a great people. There has been no politician in my time to whom the epithet masculine might be more justly applied. He had an independent mind, and though a strong partisan in the best and highest sense of the term, he showed more than once that he was quite capable of breaking loose from the ties and associations of party for what he thought the higher and predominant interests of the State. What I venture to say will keep his memory alive and green in Scotland for generations to come was his complete indifference to the prizes of political or Parliamentary ambition, and the unswerving independence, both in judgment and in action, with which he showed himself to be what a great Scotsman ought to be— the words I quote are not the words of a Scottish, but an English poet—

In the first place I venture to congratulate my right hon. Friend the Secretary for Scotland on behalf of thousands of my constituents who have the deepest and most fervent interest in the Measure we are carrying through. We owe him a great debt, because he has rightly, as I think, interpreted the firm conviction and the ardent aspirations of his fellow countrymen. His lucid explanation of the great historical principle upon which this Bill is based has made easier its reception, and his conciliatory manner has got over many doubts and hesitations that might otherwise have existed.

I think that my right hon. Friend has further rightly interpreted the feeling of his countrymen in associating this Measure with the great name of Lord Balfour of Burleigh. I would ask, Mr. Speaker, in a very few words, to be allowed to add my humble tribute to these more effective eulogies which have been passed. I have had the privilege for close on half a century of the intimate friendship of Lord Balfour of Burleigh. I was associated with him in much of his public work, and it was my peculiar pleasure to serve immediately under him during the seven years he was Secretary for Scotland. During that time he struck me as a very model of British statesmanship, bringing the intricate and very often perplexing problems of administration to the touchstone of a calm, balanced, considerate judgment, but at the same time always ready to show every zeal and quality in his work. Impetuous in his enthusiasm for all great ideals and for what he believed to be the good of his country, I think his countrymen will not disassociate for many a generation this Bill, out of which they hope so much benefit to their country will come, from the name of Lord Balfour of Burleigh in a sacred association. My right hon. Friend did well to use this occasion to pay him that tribute which he has earned by the very peculiar position he held for so many years in the estimation of his fellow-countrymen. It was to his industry, his championship, his never-ending and self-sacrificing zeal that this, the first victory in what the vast majority of Scotland hope will be a road of great benefit, was achieved.

As one who has unhesitatingly opposed this Bill, I wish to join in the tribute which has been paid by everyone who has spoken so far to that great Scotsman who has recently passed away. The Bill now passes its final stages in the shadow of the death of one who was the chief promoter. In my belief, the Bill would never have reached its present stage at this time without the constant assistance, advice, help, and promotion of that statesman. It has now reached a stage at which, though his hand is withdrawn from it, it may be carried to fruition by others, and although I oppose the Bill I should like to say this, that I have always derived the greatest help and the greatest inspiration from the study of the little book on Presbyterism in Scotland which was written some years ago by Lord Balfour of Burleigh, and which shows that although people may hold different views on some questions of Church policy, yet there is a vast amount of which Scotsmen can agree. I said what I had to say on the Second Reading of the Bill, and, as far as I am concerned, having ascertained that the judgment of this House and of my fellow-Members from Scotland is against me on this matter, I am prepared to leave it there. Theirs must be the responsibility. I would just say in summing up that I oppose this Bill in the first place because I do not regard it as a Union Bill. It does not enact union, and it does not of itself make union possible. That is admitted on every hand.

I beg my hon. Friend's pardon. So far as I am concerned, I do not admit it—I deny that this Bill does not make union possible.

That is a point upon which my right hon. Friend had better consult the leaders of the United Free Church. They have said most distinctly, and their statement has been acknowledged by the leaders of the Church of Scotland, that they will not negotiate union on the basis of this Bill only. They have said that before they will enter into negotiations for union another Bill must be passed dealing with the whole question of the ancient endowments of religion in Scotland. My right hon. Friend knows they said that, and that they have refused to enter into negotiations, that they wanted the other Bill passed at the same time as this Bill, and that they are disappointed at the refusal to do so, and how he can rise in his place and say, in face of that, that he believes this Bill will make union possible, I do not understand. He has tempted me to be a little more argumentative than I intended, but I will add this, that the leaders of the United Free Church have declared that they cannot consider the question of union until the Church of Scotland has been put entirely free of all State control in spiritual matters. This Bill does not put the Church of Scotland entirely free of State control. The Church of Scotland after this Bill is passed will still be by statute Trinitarian and by Act of Parliament, Protestant. These people say they will not have union unless the Church is entirely free. If they unite on this basis they will then be statutory Trinitarians, and Protestants by Act of Parliament. They said they will not be. So I say that this Bill does not enact union, and does not in itself make union possible.

In the second place, I have a graver objection, and it is that this is a Bill which is designed to overturn the settled constitution of the Church of Scotland, the constitution which is the settled policy of the Scottish people arrived at after many generations of conflict. This is a Bill to repeal the Revolutionary Settlement of 1690 and to repeal the whole of the legislation passed by the Scottish Parliament with regard to the Scottish National Church, with regard to its relation to the State in matters spiritual. There has always been a strong party in the Church which desired this. There was a strong party before the Revolutionary Settlement who objected to that settlement. They have continuously through each generation striven to secure its repeal long before there was any question of union. This Bill was part of their policy long before any question of union arose. The last attempt was made in 1886 by Lord Finlay, when he introduced a Bill almost similar in its terms, when there was no question of union at all. This Bill is designed to achieve something quite different from union. It is designed to achieve a revolution in the status and constitution of the Church of Scotland, and, as my right hon. Friend the Solicitor-General said—and his utterance caused grave misgiving among many people who have supported the Bill in Scotland—even if things go no further, as he said, even if there is nothing to follow there will be many people in Scotland who will be quite satisfied with having got this Bill.

They may succeed now in tearing up the Revolutionary Settlement, with the help of a Secretary for Scotland, who does not know yet what he is going to put in its place. The people are apathetic, I admit it. There is no storm of indignation in Scotland. It has not realised what this Bill is doing. It has never been before the people of Scotland and never before the laity of the Church. There is not a single Scottish Member who put it in his election address at the last General Election. The only people who have been concerned in the framing and promotion of this Bill have been the ecclesiastics and officials of the Church. It is only they who have passed judgment upon it. It is only with their support that it has come forward. We may now tear up the Revolutionary Settlement. It has been done before. Bills of this kind have been passed in an apathetic House with an apathetic country and caused great trouble in the Church of Scotland, but in the long run the national view on these matters has prevailed, after much dissension and much tribulation, and the carrying of this Bill now will let loose forces and instincts which have been long dormant in Scotland. It will stir up controversies which will blight from the beginning the negotiations for unity. My Friend has a much more difficult task before him before union because he has the task of the subsequent legislation dealing with the ancient endowments in the Church. He denied at the last opportunity that this was a controversial matter or that it was political. He has had some experience. He introduced a Bill last Session, the Teinds Bill, which was designed to settle this question of the ancient endowments. This Teinds Bill had the assent of the Church of Scotland expressed through its assembly, yet when the Bill was brought before the House, so great was the opposition stirred up in the rank and file of the clergy of Scotland, though their assembly had assented to it, that the Bill had to be withdrawn. This is the easy matter, the matter without controversy to be settled after this Bill. This is a most difficult Bill, as my hon. Friend can realise, and it is for that reason that I appeal to him that he should delay this Bill destroying the constitution of the Church of Scotland until he is able to inform the House and the country what is the full policy which he intends to pursue and what is the new constitution of the Church of Scotland which he intends to set up in place of that which he has destroyed.

If the country, particularly Scotland, desired to know how futile it was to discuss this Bill in an Imperial House of Commons, you only require to look at this House this afternoon where in an attendance of less than the quorum which ought to make the House there are some twenty, or less than a third, of the Scottish Members taking part in the Debate. That shows how utterly absurd it is to say that there is any particular desire for this Bill in Scotland, or that any particular piece of work is being finished. Personally I regret that an attempt has been made to associate this Bill with the memory of the great Conservative Scotsman who has been laid to rest to-day. Lord Balfour of Burleigh had been on the opposite side of politics in Scottish public life to a great number of us here for a great number of years. We always respected him as a great Scotsman, and at the same time differed from him sincerely and profoundly in the attitude which he took up on all Scottish questions. Lord Balfour of Burleigh was a great Conservative Scotsman, but when my right hon. Friend the Secretary for Scotland, in his eulogy of him, desires to say that he is completing the work which was the master passion of that nobleman's life, and that we ought to have some satisfaction in that, I should like to recall Scottish Members to the history of the past quarter of a century in Scotland. There were three very big Scotsmen— all of them physically big—concerned in this dispute in Scotland, namely, Lord Balfour of Burleigh, Principal Rainy and Principal Cairns. I do not suppose that there were ever three bigger physical giants than those three Scotsmen.

I was only thinking of their personal appearance. These three men laid their hands to this question, and, when they were doing that, my right hon. Friend the Secretary for Scotland was behind them and supporting them religiously.

My hon. Friend must not say that. He has no justification whatever for saying it, and it has no foundation in fact.

I shall be sorry to know for the first time that my right hon. Friend was not in favour of Disestablishment of the Church in Scotland, and did not include that in his platform when he stood as a Liberal in Scotland. I understand my right hon. Friend to say that he did not understand that I was speaking of Disestablishment, but Disestablishment is the point at issue. That shows the futility of this discussion.

My hon. Friend made a definite statement of fact, that in all the propaganda carried on by the three gentlemen whom he named I was behind them all the time supporting them in all of it. That is the general statement which he made, and which I deny.

I do not understand that meticulous difference. My right hon. Friend was one of the ornaments of the Liberal party in Scotland who supported the disestablishment of the Scottish Church. This is a Bill introduced in order to secure that by securing some kind of union, with the disposal of the endowments, probably for some secular purpose which we cannot get to know in this discussion. Therefore I say that a great tradition in Scotland is being betrayed by the passing of this Bill, and it would not have been betrayed but for the Coalition Government which now sits on those benches. If the Liberal Members who are attached to the Coalition to-day had not been Members of the Coalition, they could not have resisted, and would not have dared to resist, the claim for disestablishment of the National Church of Scotland. It is because you have this Coalition, because there is the same kind of suppression of principle in this matter as there is in all other matters, that a Bill of this kind is passing. It is, indeed, futile to oppose the Bill any further. It has now reached its Third Reading stage, and I do not suppose that, through all its stages from its introduction, 50 Members of this House have paid the slightest attention to it. It will become the law of this land, and after that we are to enter upon the real question at issue, namely, whether you are going to continue a State Church with State endowments when the State will have no control over that Church or over its endowments. When that question comes to be discussed by the Scottish people, we shall have got rid of the Coalition, and the matter will again be a topic of public interest in Scotland which can be freely discussed; and I venture to say that a great many Coalition Liberals, who are suppressing their real views in agreeing to the passage of a Bill to which they would not have agreed five or six years ago, will find themselves back in their original position.

I take it that no English Member would intervene in the discussion upon a Scottish Bill unless he felt that his remarks had some reference to English as well as to Scottish affairs. The Noble Lord the Member for Alder-shot (Viscount Wolmer), in the Debate on the Second Reading of this Bill, intervened to give the Bill a cordial and sincere welcome, not entirely without reference to the view which the Noble Lord takes of ecclesiastical matters in England. Many of us who do not oppose this Bill, and who do not take any active part in its discussion, adopt that attitude, not because of a double dose of original sin, or even because of any such infusion of poison as my hon. Friend the Member for East Edinburgh (Mr. Hogge) seems to think inseparable from support of the Coalition, but for a quite different reason, namely, that we consider this to be a matter for Scotland to decide for herself. I am one of those who believe that the best of all maxims for democratic government is that of Sir Henry Campbell-Bannerman, that free government is to be preferred to good government. I should cordially admit the right of my Scottish fellow Members to do wrong as regards their constitutional position. I do not, of course, arrogate to myself the unpleasant position of deciding what is right or wrong in Scottish theological discussion. It would be a great mistake if the passage of this Bill were, in accordance with the prevalent notion of Scottish Members of this House, to be taken as deciding, or even prejudicing, the great questions which are involved in the relations of Church and State in times like the present. A natural and sincere interest is felt by Free Churchmen in England as to whether the passage of this Bill will or will not affect prejudicially the discussion of very great matters on which there are, as we know, profound differences of opinion which cannot be ignored merely by a policy of calculated silence. Therefore, while this Debate and the passage of this Bill, as far as I can judge, reflect accurately the predominant opinion of Scottish Members of the House in a matter which is peculiarly one for Scotland, and, therefore, may well command the more or less sympathetic acquiescence of those who are not Scotsmen, it is, on the other hand, equally clear that the passage of this Bill is not to be taken as setting a precedent for England, where conditions, historical and otherwise, are very different, or as prejudging in any way those problems of Church and State which will, sooner or later, have to be considered very thoroughly by the Imperial Parliament— unless, indeed, we have, as many of us hope, such a system of devolution as will allow each part of the kingdom the right to deal with its ecclesiastical matters in its own way, without bringing them in to increase the difficulty, and sometimes to confuse the issues upon which an Imperial Parliament ought to be based and in accordance with which it should do its work.

In the very eloquent speech of the Secretary for Scotland, in moving the Second Reading of this Bill, the right hon. Gentleman alluded to the effect on religious matters of the late War. I should like to say a word or two in elaboration of that point. It fell to my lot to see a good deal of the work of the chaplains at the Front. I was on duty in the same town as General Headquarters, and from first to last I was brought into intimate contact with the Chaplains' Department— with Dr. Simms, with the Chaplains of the Church of England, and with the Presbyterian, Wesleyan, and other chaplains. I agree with the Secretary for Scotland that the effect of the War upon our clergy, and also upon our people, must have been to do away with a great deal of the differences which existed between different sects in our country. Those chaplains had to work together, and they were working for the same object and very often ministering to the same men. They were brought together in many good works, and, after all, when a padre is ministering to a wounded or dying soldier, it cannot matter very much to what particular dispensation he is attached in his own country. That must tend, not only amongst the clergy, but also amongst the laity, now that the War is over, to promote inquiry as to what the differences in our ecclesiastical institutions are, whether they are worth retaining or not, and whether they ought not to be assimilated, so far as they rightly can be.

5.0 P.M.

I take it that this Bill is one step towards the attainment of that object in Scotland. It declares, as I take it, the creed of the Church of Scotland in such a way as to make it plain to all, and to make it plain to that other great Church, which desires to be informed officially what that creed is before it can take conscientiously any steps towards union. That is the first step which we are about to take. I remember, when I was a small boy, what the differences in our church matters in Scotland were. I have seen people in the same family going on a Sunday to different churches, where you could not find any difference of doctrine, any difference of church service, any difference of church government, or, in fact, any difference at all That has often appealed to my thoughts since those days. Surely, it must be admitted that the existence of differences which rest upon no substantial basis must be detrimental to the progress of religion amongst the people, and that it is a good thing for people to sweep them away. I trust that the passing of this Bill will be a step towards that great object. I had among my forbears one who was instrumental in the Revolution Settlement. He was Principal Carstairs, a great name in Scottish history, who was adviser to King William III on this very matter. He it was who brought it into being that the Church of Scotland was established as a Presbyterian Church. I do not believe, with all due deference to my hon. Friends opposite, who have put' forward the objections which they hold-objections which, to my mind, have no force in them at all—I do not believe that there is anything in this Bill which is contrary to the Revolution Settlement or to the Established Church of Scotland as we have known it from our boyhood. It is well to stand out boldly for any real matter of principle in religious questions. I admire the man who does that. But I think that we ought to examine very closely our sentiments with regard to this matter, and to see whether these conditions on which we insist are really necessary at all in the cause of religion. If we find that they are trivial matters, that they are matters of old-time dispute which have passed away, and that no injury can be done to the Church or to religion by their being abolished, then I submit we ought not to hesitate to abolish them. Times and opinions have changed. We have heard a great deal all our lives of the events of 1843 in Scotland, but the reasons for those events have apparently passed away.

I think that is further than we can go on the Third Reading of this Bill.

I have a recollection of shelves of books, of volumes of arguments on that question, and I am getting rather nervous of entering upon it.

Of course, I bow to your ruling, but I was not about to embark on a dissertation on that very vexed question. I hope I may be allowed to observe that I have myself, in the constituency which I have the honour to represent, been inside buildings with 1843 carved over the door. They are churches no longer—in three instances, at any rate. One is turned into a public hall, where I have delivered political speeches. The remaining two have been put to other uses. I am only mentioning it to show that these disputes are becoming, or have become, a thing of the past. At any rate, I hope that is so, and we ought for that reason to do our best to pave the way to a union of these two great religious bodies in Scotland. Scotland does not want Disestablishment. I am not going to argue that point either. I remember very well that the hon. Member for Renfrewshire (Mr. Johnstone) mentioned Mr. Gladstone, and seemed to think that Mr. Gladstone had departed from his principles in throwing Disestablishment overboard. But Mr. Gladstone did that because he had seen the results of a plebiscite taken in Midlothian, which showed conclusively that there was no wish on the part of the people of Scotland for Disestablishment. I must pass on from that. I can conscientiously say that—

Notice taken that 40 Members were not present; House counted; and 40 Members being present

I was interrupted in my peroration. I was just about to conclude by saying that, in my belief, there is no real apathy in Scotland on this matter. The people of Scotland do desire this Bill, and I hope that it will soon be passed into law.

I would like to remind the House that although the Bill, promoted by the Church of Scotland, asks the House to make lawful certain Articles, the spiritual freedom desired to be conferred on the Church of Scotland has not been sought by that Church. The Bill has been promoted by the Church of Scotland out of deference to the wishes of the United Free Church of Scotland. The Church of Scotland leaders have declared over and over again that they do not find that the statutory connection between Church and State hampers their spiritual freedom in any shape or form, and that they have all the spiritual freedom they desire. Therefore we have this difference between the Scottish and the English Enabling Acts. The latter was sought by the Church of England, but this Bill is promoted by the Church of Scotland in order to facilitate union with the United Free Church, and not because the Church of Scotland desires freedom for spiritual affairs. Suppose the union should never come, then the Church of Scotland do not mean to take advantage of the spiritual freedom conferred upon them by this Bill, which will, in that event, become a dead letter. I do not think that the significance of this Bill is quite fully appreciated by the House, and I am satisfied that it is not quite fully appreciated in Scotland. I disagree with some of my hon. Friends who have spoken. We have come to a very important stage in the history of Scotland.

The United Free Church laid it down as a preliminary to any negotiations with the Church of Scotland, that they must have these powers conferred upon them. The United Free Church have also said that this Bill is not sufficient and that they will not enter into any negotiations with the Church of Scotland even when the Bill has been passed, until a Measure has been carried through the House dealing with ancient endowments, and this Bill, when it has passed through this House, will be hung up until that further Measure comes forward and until the question of endowments has been settled by this House. I would like to call the attention of the House to this declaration. They say that when the Parliamentary Commission reports on endowments, their proposals must be submitted to the Church of Scotland for their approval. Whatever the Parliamentary Commission do, if it does not appeal to the Church of Scotland, the negotiations may break down, and it may also happen that whatever the Parliamentary Commission may report, it may not appeal to the members of the United Free Church, and it is only consequential upon a satisfactory issue being found by the Parliamentary Commission with regard to the ancient endowments of the Church of Scotland, that any negotiations can be entered upon, and this Bill will then become one of the stages of the negotiations. There is this important point I would like to bring before the House: I believe that if a satisfactory solution can be found in regard to the ancient endowments, the union will be carried out between the United Free Church and the Church of Scotland. The House should realise that the whole question between the two Churches hinges upon spiritual freedom and on the question of endowments, and that the one question which is ignored or rather acquiesced in by both Churches is the statutory connection between Church and State, which still remains.

I remember that 30 or 40 years ago the question of Disestablishment was very much in the forefront in Scotland, and practically the whole of the Members for Scotland were pledged to Disestablishment. The people of Scotland were demanding a Church free from the State. In the Debate on the Second Reading of this Bill there was a very illuminating observation made by the Noble Lord the Member for Aldershot (Viscount Wolmer), who said he welcomed this Bill because it was to be a reunion of the churches in Scotland on the basis of Establishment. The Noble Lord was quite right, for that is what is going to happen. We are going to have a union of the two great Churches in Scotland on the basis of Establishment. Do not let there be any doubt about that. I am bound to say that one outcome of the union negotiations between the Established Church and the United Free Church of Scotland is that it has side-tracked the Disestablishment agitation in Scotland. That agitation was swept on one side. The union negotiations have taken the place of Disestablishment—I am not quite uncharitable enough to suggest that this was the desire of the leaders of the Established Church—but undoubtedly the negotiations have side-tracked Disestablishment and swept it out of the arena of political questions. Now we are going to have one of the most momentous things that has ever happened in the history of Scotland or in these islands. We are going to have a great Dissenting Church repudiating its whole declaration upon religious equality, and entering into a union with an Established Church on the basis of Establishment. I congratulate this House on the apparently successful issue. The Established Church of Scotland is going to bring into its fold the great Dissenting Church which embraces the whole of the United Presbyterian Church and the great Free Church of Scotland; in fact, we are going to have the two great Dissenting Churches in Scotland joining up with the Established Church on the basis of Establishment, and I do not think the people of Scotland quite fully realise that.

I spoke at some length on the Second Reading, and I do not intend to occupy much time now—[HON. MEMBERS: "Hear, hear!"]—although on a Monday afternoon, after we were promised three days to discuss the Bill, it is not improper that the few Scottish Members who take sufficient interest in it to attend and take part in the discussion should have a certain amount of time to say what they think about the question. We have had during past years disestablishment in Ireland, we have had disestablishment in Wales, and we have had this disestablishment agitation in Scotland, which is now to be a thing of the past, and we have this abject surrender, for that is what it amounts to, of the principle of a free Church in a free State, and of religious equality, by this great united democratic Free Church, abandoning all its past declarations in favour of disestablishment, and entering voluntarily into the establishment fold. I think the people of Scotland will have something to say on that point when they come to the awakening that is in front of them. One of the worst things that could happen to any church that depends upon the loyalty of its people, and especially to a free Church which has been supported by the voluntary offerings of its people—the worse thing that could happen to a Church in a community such as Scotland is the feeling that the interests of the Scottish people are being betrayed by scheming ecclesiastics who are seeking more the interests of their Church organisation than the religious interests of the people. I am seeking to give expression to convictions that I hold very sincerely.

You said that in the General Assembly, and they would not listen to you.

All the worse for the General Assembly. It is a good thing that the British House of Commons, this freedom loving House, will listen to opinions opposed to the great majority as long as those opinions are honestly held. The General Assembly of the United Free Church would not listen to me, and howled me down. Before I spoke, one young minister said, "You will find this assembly a very interesting place, but in many of its aspects one of the most unchristian places on God's earth." We have this amazing fact—and it is one that ought to be impressed not only on this House, but on the minds of the people of Scotland—this abject surrender, this abandonment of old principles, this repudiation of the principle of religious equality, and the great United Free Church entering into communion with the Establishment on the basis of Establishment. I believe when the full consequence of that is realised by the Scottish people, you will have a great reaction against this Measure. I believe the influence of a Church so built up, on such an insecure foundation, upon such an immoral principle as the United Free Church, abandoning all the testimony of the past, and going into the fold of the Establishment, will wane with the great masses of the Scotch people, and more and more they will drift away from the influence of Church and Church life. We do not carry our opposition to the Bill to a Division. Along with my hon. Friends who have spoken against it, I am profoundly convinced that the proper and honest course would have been Disestablishment and Disendowment, and the two Churches of Scotland put on an equal footing, with equal freedom, equal to one another, to enter into negotiations both free. That has not been possible, and the way in the future will not be such a rosy path as many of my hon. Friends think. I believe there are snags which the Union negotiators will come up against. I can quite believe that the great majority of the people of the United Free Church will enter into this union with the Established Church of Scotland, and participate in the benefits of those endowments which in days past they said they would have nothing whatever to do. I believe a wrong course has been taken in regard to the proposals contained in the Bill. The Bill itself is a very innocent one, and does not mean very much. But as part of the programme that is being built up for the promotion of union between the Established Church and the United Free Church it is a very important step, and if it should lead to a solution of the question of the endowments, I think the Established Church will look forward with fond hope to a reunion between the two Churches, and I am convinced that while that union may be contemplated in the near future, yet evil courses will follow in its train which will largely militate against the benefits to be derived from Church union.

I am not sure that the best use of the House of Commons is for an hon. Member who finds that in his own General Assembly he could not get a speech delivered to come and impose it upon the House of Commons. I agree with the hon. Member up to a point. This Bill would never have been asked for by the members of the Church of Scotland qua Church of Scotland. The members of the Church of Scotland are satisfied with their constitution as it is. They believe they have their freedom under the constitution as it is now, and even as it is declared in the Bill. But the United Free Church question the view that the Church of Scotland people hold. They say, "We do not agree with you when you declare that you have that religious freedom now, and unless it is re-enacted in some such form as this Bill we are not prepared to go any further into the question of union." But the Church of Scotland does not say, "As this Bill codifies now the constitution of the Church it will not be made any use of if union does not still come." If this Bill passes it will remain the constitution óf the Church of Scotland for all time. It will not be allowed to lie unused. I do not agree with the hon. Member in the view that he takes of the ecclesiastical leaders of the United Free Church. I have seen a good deal of them, and I regard those gentlemen as being imbued with one thing only, and that is, what is best for the religious future of Scotland. I wish my hon. Friend would not be like a Bourbon and learn nothing and forget nothing.

I think we should find it hard to justify that in Scotland there should be two great churches, one in doctrine, one in Government, and that this should go on without any effort to unite them. I think that is a thing which would cause people to drift apart from Church connection and make the people of Scotland feel less reverence than they have felt in years gone by for the Church of their fathers. I think we Scotsmen owe an immeasurable debt of gratitude to the leaders in the Church of Scotland and in the United Free Church for the work they have done in the past 14 years. Anyone who knows Scotland for the last 25 years knows how difficult their work was, how many suspicions there were in the way, and how much mistrust engendered by long years of separation. They had much to contend with. These men, statesmen I think, were equal in every degree to the great ecclesiastical statesmen of Scotland who preceded them, worthy to take rank with the highest. My hon. Friend the Member for East Fife alluded with pardonable pride to a great ancestor of his own, Principal Carstairs, to whom Scotland owes to this day a very deep debt of gratitude. There have been other great men who have followed, in the 200 years since then, the great names that we all venerate, but I fully believe that when the history of these last few years comes to be written, the men who have been prominent in this union movement will rank as high as any, and I disagree entirely with the view my hon. Friend the Member for East Renfrewshire arrives at with regard to the union movement. I think it has been a great thing, greatly attempted and carried out in a way that ought to make all Scotsmen proud. I congratulate the Secretary for Scotland, who has rendered Scotland many services, but none I think comparable to this, in that he has been able to pilot this Bill through the House of Commons with such great success and that we see it to-day, happily for Scotland, receiving a Third Reading.

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

Bill read the Third time, and passed.

Ways and Means

Considered in Committee.

[Mr. JAMES HOPE in the Chair.]

I beg to move:

"That in the case of a trade or business formed by the amalgamation, after the fourth day of August, nineteen hundred and fourteen, of two or more trades or businesses the final accounting period of the amalgamated trades or businesses for the purposes of Excess Profits Duty shall be a period ending on a mean date to be fixed by reference to the dates on which the final accounting periods of the constituent trades or businesses would respectively have ended if amalgamation had not taken place, and to the respective pre-War standards of profits of the constituent trades or businesses for their last accounting periods prior to amalgamation, and Excess Profits Duty shall be charged accordingly."

This is a money Resolution which is necessary in order to lead to the amendment of a Clause and a fresh Schedule which will be put down in Committee on the Finance Bill on the recommittal. The substance of the Amendment is in connection with a concession made by the Chancellor of the Exchequer in Committee on the Bill. The Clause in connection with which the concession was made is that which fixed a time for the termination of Excess Profits Duty. This concession affects the time at which Excess Profits Duty is to end in respect of amalgamated businesses. The Committee will remember that it was the original proposal of the Government that amalgamated businesses should come to an end as regards their last accounting period on whatever would have been the earliest date under the other provisions of the Bill for constituent parts of the amalgamation. That was criticised on the ground that it would be inequitable in certain cases in which very large businesses had amalgamated with very small businesses. In consequence of that criticism a concession was made by the Chancellor of the Exchequer that the date at which Excess Profits Duty should terminate in respect of amalgamated businesses should not be the earliest dates, as proposed by some, or the latest dates, as proposed by others, but a mean date between the two, which was decided by having regard to the relative importance of the businesses, and the relative importance of the businesses was to be measured by their pre-War profits standard. It will be within the remembrance of the Committee that at the time when this fresh arrangement was announced it met with the unqualified, general approval of those who had criticisms to make of the Government's proposal and who had proposed other schemes. It is, therefore, quite fair to say that this proposal is in the nature of an agreed arrangement, and is made in a manner regarded as equitable, after all the various criticisms had been advanced. This Motion leads to the introduction of a rather more lengthy provision which will be necessary, subsequently, in Committee.

Question put, and agreed to.

Resolution to be reported To-morrow; Committee to sit again To-morrow.

Water Undertakings (Modification of Charges) Bill

Order for Second Reading read.

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

The object of this Bill is to enable water companies and local authorities who find themselves in considerable difficulties to increase, under suitable restrictions, charges which are authorised to be made under their statutory provisions. The House will be aware that the large water undertakings have this Session promoted something like 40 Bills for the purpose of meeting the difficulties under which they labour, namely, that owing to the increased cost of wages, material, and coal, in many cases they are almost in an insolvent or semi-insolvent state, or their dividends have become so much reduced that it is impossible to raise the fresh capital which is necessary for them to extend their business. There are in this country a large number of water undertakings belonging to smaller local authorities or small companies which cannot afford to pass Private Bill legislation through this House. The cost is too great for the size of the undertakings. Further, it is a very wasteful procedure to ask this large number of companies to engage in Private Bill legislation.

No, it is not limited to small companies. Some of the companies are quite considerable companies. If we were only dealing with the very large undertakings, like the London Water Board, the position might not have been so urgent as it is at the present time, when whole districts are threatened with the collapse of their water supply. A Bill was passed in 1918, the Temporary Increase of Charges Act, 1918, winch dealt with charges in respect of gas, water, electricity, etc., but that Act does not fully meet the case at the present time. That temporary Act expires two years after the end of the War, and the companies now require something of a more permanent nature in order to enable them to raise fresh capital, as they must do, if the needs of water supply is to be carried out in many districts. I do not think there is any point of controversy on this subject. It is a matter which has been very fully discussed.

It has been generally discussed by those who deal with water questions and local authorities who are interested in the supply of water. This is the first opportunity I have had of bringing it before the House. The House has passed similar legislation dealing with similar needs of other statutory undertakings. The House passed legislation in regard to gas, the Gas Regulation Act, 1920, in regard to tramways, the Tramways Act, 1920, in regard to harbours, docks and piers, by the Harbours, Docks and Piers Act, 1920, and this Bill is drafted in consonance with the Acts which this House has passed in regard to these various matters. The scheme of the Bill is on the following lines: The first Subsection of Clause 1 enables the water undertakers to make an application to the Minister of Health in order to state

"that for the purpose of meeting any increase in the cost and charges of and incidental to the carrying on of the undertaking attributable to circumstances arising since the fourth day of August, nineteen hundred and fourteen, which were beyond the control of and could not have been reasonably avoided by the undertakers, an Order under this Section should be made with regard to the undertaking."

In those circumstances

"the Minister may, if he thinks fit, by Order—

( a ) provide for modifying any statutory or other provision affecting or regulating charges to be made by the undertakers, and of any statutory or other provisions consequential thereon."

This Bill gives very considerable powers to the Minister of Health, but I do not know that there is any other method of dealing with the present difficulty unless you do allow some very elastic powers to be given. The circumstances of practi- cally everyone of these companies varies enormously. They range from companies of considerable magnitude to companies with a capital of £30,000, £40,000, or £50,000. Therefore, it is impossible to lay down a cast-iron kind of rule, and a good deal of discretion must be allowed. Subsection (2) provides that

"If at any time on the application of the undertakers or a local authority, or where the local authority are the undertakers of twenty consumers, it appears to the Minister that owing to change of circumstances affecting an undertaking in respect of which an Order has been made the powers of charging effected by the Order are insufficient or excessive for the purpose aforesaid, the Minister may make an amending Order revising the powers of charging, so, however, that the revised maximum charges shall not in any case be less than the statutory maximum charges applicable to the undertaking prior to the said fourth day of August, nineteen hundred and fourteen."

That gives protection to the consumer and the local authority. Under Clause 2 it is provided that

"Before making an Order under this Act the Minister shall require the applicants to give, in terms approved by him, and in such manner as he may consider best adapted for informing any local authorities or other persons affected, public notice of the application for the Order, …"

Therefore, in regard to any Order that is made, if it is to be effective notice must be given to the local authority. The local authority can then raise objections, and all the objections will be duly heard and an inquiry will be duly held. Before making an Order of this character the local authority will be heard, and, further, the Minister if he is in doubt in the matter may make a Provisional Order which will not be effective unless and until it is confirmed by Parliament.

It does not necessarily come before Parliament, but it is obvious that the Minister would be glad, if there is any doubt of any kind, to have the confirmation of Parliament. As a matter of fact, it does come before Parliament, because Sub-section (2) of Clause 2 provides

"… if any local authority within four weeks from the date of such notice as aforesaid give notice in writing to the Minister that they object to the Order, and the objection is not withdrawn, or if for any other reason the Minister thinks it desirable, the Order shall be provisional only and shall not have effect Unless and until confirmed by Parliament, …"

In that case the Minister must place it before Parliament. When there is any objection taken by a local authority, as the exponent of the public interest, it will come before Parliament automatically, but if it did not the Minister could, if he thought it desirable, bring it before Parliament.

Where the local authority is the sole promoter of the undertaking what protection is there in that case?

The consumer may make objection and the Minister can place the matter before Parliament. It is quite possible that it may be thought that that should be made mandatory. If that opinion was generally shared, I do not say now on Second Reading, but in Committee, the question ought to be very carefully examined, and I would not be unprepared to consider it in a favourable sense. This Measure is very largely overdue. Many of these companies who are asking for power to increase their charges are living to-day on bankers' overdrafts, and have got into such a condition that the undertakings might pass from the hands of the companies into the hands of the liquidators if there was any great delay. The House will agree with me that it is essential that the water supply should not stop in any way. In the case of many of these companies their resources are coming to an end, and there is danger that if a Provisional Order is made too exacting it might cause delay which might land the companies in very serious difficulties. That is a point which I must place before the House. In reality this Bill ought to have been introduced some considerable time ago. This is, however, the earliest opportunity I have had, and it is only on account of the urgency of the matter that I introduce it at this stage of the Session. If there are any legitimate doubts about it they could be considered in Committee. Where the local authorities are the undertakers I do not think that they are likely to put unnecessary charge upon the consumers who are the people who have returned them to office, but if there are any doubts on the subject I think that that will be a very suitable point to take up in Committee, and I will not shut my mind to that aspect of the question on the Committee stage. I know the not unnatural dislike which exists to withdrawing statu- tory provisions from Parliament and placing them in the hands of a Department, but the present happens to be a time of emergency, and I hope therefore that the House will give the Bill a Second Reading, and any points which are raised in Committee upstairs shall have my most careful and sympathetic consideration.

I see that this Bill begins with the time honoured formula—

"Be it enacted by the King's Most Excellent Majesty by and with the consent of the Lords Spiritual and Temporal and the Commons,"

but as I read the proposal of this Bill, what it should say is, "be it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Ministry of Health." This Bill is simply a statutory power to the Ministry of Health of making consumers pay more for their water supply. My right hon. Friend has stated frankly that there are 40 Bills at present before Committees upstairs dealing with this very point, and he looks forward with dread to another 40, and therefore he gets all these heads together on one block and proposes to chop them off by this Bill. Those who are familiar with Private Bill legislation realise that, whatever may be said as to the care and discretion which Committees have exercised with regard to legislation for undertaking companies, there is no branch of Private Bill legislation in which they have exercised such meticulous care in the public interest as that of the water supply, and advisedly so. We all know that the water supply is probably the most vital public service which this country has at its disposal. Therefore I submit that the House would be well advised before passing legislation in anything like the form now proposed to give a most careful examination to this complete reversal of the legislative methods of the immediate past. The Minister of Health says that he is only seeking powers which have been granted in reference to tramways, gas, and other forms of public service. That was done in the early days of this Parliament, when legislation was being rushed through with nothing like the adequate care and attention which it should have. It did not make any difference what was proposed. As long as it came from the Government it reached the Statute Book. But we have now had very many examples of the legislation of the Government and the need for care in seeing what they really propose before we pass it. I need not give any examples. They are fresh in the minds of hon. Members. My right hon. Friend says that this is emergency legislation. What is the emergency?

Making every kind of allowance for the effects produced by the recent coal strike, take what department you like in industrial life, prices are falling and costs are falling, and yet we are pressed to pass legislation because of the increase of cost. If there was ever a time for that, that time was when the costs were high and the country could afford to pay. We have now got falling prices and a falling capacity to pay those prices. This is not a time for increasing prices. I make that general statement, but where you have a special case for an increase in price for the furnishing of this commodity, where the cost is falling but the capacity of people to pay for it is also falling, why should you not make a case before Parliament for raising those prices? My right hon. Friend proposes that the powers of Parliament are to be completely taken away, and that they are to be given to the discretion of the Ministry of Health. I do not think that any more drastic or revolutionary proposal has been yet laid before this House. It is quite time that we stopped this rush legislation. The fact that such a step has been taken in the past is all the more reason why we should stop now and examine carefully a proposal such as this.

The proposals disclosed in this Bill are horrifying. Where does the consumer come in? I am not at all surprised that the water-supplying undertakings raised no objection to it. Why should they? All they have have to do is to go to my right hon. Friend and make out a case, which I am sure they will be able to present, that, owing to circumstances which they could not control and could not reasonably have avoided since the start of the War, they are entitled to charge more. There is no question of public authorities objecting to the powers proposed. They will take them with the greatest of pleasure, but the duty of this House is not to consider whether public authorities however democratically constituted, object or not, but to see that the public interest is protected, whether it happens to be represented by a public authority or not. My right hon. Friend, in somewhat regal mood, has said that when this Bill goes into Committee he is prepared to consider any suggestions put before him. I hope that he will exercise his royal prerogative of mercy and see that these suggestions made by humble subjects, Members of this House, have adequate and proper consideration. I do think that the time has come when legislation of this kind should receive much more careful consideration, and that the powers sought by the Ministry of Health in this Bill should be radically cut down.

While I agree in the main with the sentiments of the right hon. Gentleman the Member for Peebles (Sir D. Maclean), may I place before the House some facts with regard to this particular Bill which I think will cause my right hon. Friend to modify his criticism of this particular Measure. It may be that it does appear, on the face of it, that this is an enactment which is to be enacted at the will of the Minister of Health, but this legislation was promised last year by the Minister of Health and was promised by him upon a request made by an association representing all the water authorities, both municipal and company, in the country, of which last year I had the honour of being president, and though it is true that in that capacity it may be suggested that we represent the owner of the undertakings or the people who make the charges, still, in respect to, at any rate, 75 per cent. of the members of the association which represent the whole of the water authorities of the United Kingdom, they were as much interested in public ownership and therefore in the protection of the public as my right hon. Friend or any critic of this particular Bill. Therefore, this proposal has been seriously considered by an association of public men of this character who realise that it is owing to the circumstances resulting from the War that these powers have to be sought.

It is true, as suggested by the right hon. Member for Peebles, that the effect of this Bill will be that the consumers of water will have to pay more. That is inevitable in the case of all public utility supplies. There are many authorities at present bound by their Acts of Parliament who have not been able to recover from the consumers the actual cost of the water which is being supplied, and it is this parlous condition in which many public authorities are placed and the impossible position to which companies are reduced, that cause this legislation to be brought forward. It is true, as has been suggested, that Private Bill Committees of this House have dealt very carefully with all questions arising out of water supply, and there is nothing in this Bill which takes away from the Committee of the Houses of Parliament their responsibility or authority in connection with all water supply, with the exception of this question of charges.

6.0 P.M.

As a members of the local legislation committee who have been considering these Bills for the past two years, I know that it is a very difficult matter for a committee sitting in London to be able to pass a judgment on the merits of the particular charges sought to be imposed in a Bill, but when charges become incorporated in an Act of Parliament it becomes difficult indeed for a private company or a public authority to get those charges altered, with the result that in the case of Nottingham we are still endeavouring to work on a scale of charges which were embodied in the Act of 1847 and we have never been able to increase those charges to meet those altered conditions because of the necessity of promoting a Bill in Parliament with all the incidental expense and trouble in order to regulate what I venture to suggest is purely a matter of domestic concern. This Bill takes nothing away from Parliamentary rights in the control of a water supply per se, but it gives the Minister of Health power to alter water charges as circumstances permit. What is the emergency? So far as a number of private companies are concerned they have had cast upon them very heavy responsibilities for supplying water in considerable areas. Demands have been made on them to extend their mains. They cannot raise the capital to extend their mains and carry out the statutory obligations under which they are placed unless their revenue is such as to ensure a reasonable return on capital outlay. With regard to the suggested danger of the exploitation of the consumer of water, I would remind the House that the supply of water is unique, inasmuch as Parliament has never granted any authority a monopoly without restricting the dividend that shall be paid and the. profits that shall be earned for the shareholders to 5 per cent. There can be no question, therefore, of an authority exploiting the public. I hope that a case has been made out for the urgency of this Measure; otherwise there are in the country certain districts that within a few months will be unable to obtain water at all, because the companies concerned are quite unable to raise capital for the purpose of extension. I hardly think that this Measure can be legitimately described as drastic or revolutionary. As a matter of fact it brings Parliament practically up to date so far as concerns a point which hitherto has cost both companies and municipal authorities many thousands of pounds in coming to Parliament merely for the purpose of altering charges; and in the case of public authorities, as they are responsible to their ratepayers, I cannot see how there is any danger whatever to the consumer. I join with the Minister of Health in appealing to the House to give the Bill a Second Reading.

I wish to draw the attention of the House to Clause 1, Subsection (2), which seems to outline a most unusual procedure. It says

"If at any time on the application of the undertakers or a local authority, or where the local authority are the undertakers of twenty consumers," etc.

I could imagine a Bill containing a Subsection that if 20 consumers objected to the raising of the charges then it would be for the Minister to take their representations into consideration, but I cannot understand a provision that 20 consumers can come forward and say, "Please raise our water charges." That seems to be a ridiculous state of affairs. Sub-section (3) the House ought not to pass. It says

"An order under this Section may ( a ) fix the date (which may be a date not more than six months earlier than the date on which the order is made)."

Surely you cannot have the date made retrospective in that way? An order ought to come into force on the day on which it is made. I am glad that the Minister is willing to consider suggestions in Committee. Here are two fatal objections to the Bill. The hon. Member for Central Nottingham (Mr. Atkey) has suggested that companies can charge only a maximum 5 per cent. for water. He is very much mistaken.

I think the hon. Member is wrong. Years ago I had some shares in a water company, and I received 10 per cent. How does the hon. Member get over that fact? I have nob the shares now, because I could not afford to hold them, but I certainly had 10 per cent. for many years from that small undertaking. It is essential that this point should be looked into. There must be safeguards in the case of complaints from a certain number of consumers. As on the representations of 20 consumers charges can be raised, it should not be necessary to have representations from more than 20 before the Minister considers such representation against the raising of charges. Before charges are raised Parliamentary sanction should be obtained. Why is there such urgency for this Bill? Rents have increased. Charges for water are usually based on rentals. As rents have increased surely it is sufficient for water charges to be raised in proportion? If the landlord's receipts are limited, why not limit the receipts of those who supply water? The two should go together.

I hope the Government will consider this Measure carefully. As drafted it certainly appears to me to be a very startling Measure. Here we are, all of us in all quarters of the House, taking every opportunity of explaining our devotion to economy and insisting on the avoidance of any increase of the charges on the subject. Yet the Government comes along and in effect proposes to this House that for the purposes of local taxation the Ministry of Health, without any check at all from Parliament, by its own decision absolutely, should be entitled to increase charges on the subject. Since the days of Charles I. no such proposals have been made. It is all very well to say that these are water charges. Water is an absolute necessity and since the charge is levied, not on the amount of water consumed, but on the rateable value of the tenement occupied, in effect the water rate is as much part of the taxation of the country as the poor rate or any other local charge. It is quite true that it is payable sometimes to an authority and sometimes to a private undertaker, but it is in effect a tax. That is important. If a man consumes not a gallon of water he still has to pay a water rate.

The proposal here is that the Ministry of Health shall have power, without any control by Parliament, to raise taxes on the subjects of the Crown. Hon. Members will see a very curious thing in the Bill. Sub-section (1) of Clause 1 gives power to increase charges. Sub-section (2) is intended to give power to reduce charges. But a careful provision is inserted that in no circumstances are charges to be reduced below their present level. That is the case, unless I have misread the Bill. It says that

Then you are not allowed to reduce them below the pre-War charges. If this was a fairly drawn Bill it would say that what was sauce for the goose was sauce for the gander, and what was sauce for the water consumer was also sauce for the water company. If the charges can be increased indefinitely they ought to be capable to being reduced indefinitely. But that is not vital to the Bill. The vital principle is the proposal to give power to the Ministry of Health to increase the water rate. We have been told that there are precedents for that. I agree that there is the precedent of the Act of 1918, but that was carried during the War as a pure war measure, and it came to an end with the end of the War. It may have been right or it may have been wrong. We did a great many things in War which no one would think of doing in peace. Then it is said that since the War the same principle has been adopted with regard to gas and tramways. I think the Minister of Health is mistaken. I have looked at the Gas Act, and unless I entirely misread it, it was quite a different proposal. It enabled gas companies to charge according to thermal value instead of according to illuminating power. Gas is on a differ- ent footing. The consumer pays only for what he uses, and his payment is not really a tax. If gas charges become intolerable the consumer can revert to mineral oil or some other form of illumination, and that indeed is constantly done. Gas companies declare that they are not monopolies because they are in severe competition with mineral oil and other methods of illumination.

The same thing is true of the tramways undertakings. I am bound to admit that here I have more difficulty, because legislation is complicated by references. I understand that the purpose of the Act of 1920 was, not to increase the powers of the tramways, but to regulate and govern those which had already been given to them by the Act of 1918. I may be wrong, but that is what I understand. Tramways are in a different position from water undertakings. If the worst comes to the worst, you can do without trams. If you find the expense of using them is becoming too high, you can utilise the trams to a less extent and save your money. But by using less water you do not save anything, because the charges are based on the rateable value of the house, and not on the amount of water used. Trams and gas do not represent taxes imposed on the subject, but are really means of purchasing commodities. The hon. Member for Central Nottingham (Mr. Atkey) has referred to the question of procedure, and it is said that a committee on Private Bills upstairs cannot know what local conditions are. There is & good deal of truth in that, but I think that difficulty is met under our system quite simply by having Provisional Orders, which are confirmed by Parliament.

Yes, it is done constantly in connection with water undertakings. The local authority can apply for an extension of its water schemes, and that is done by Provisional Order. I cannot give my hon. Friend an exact instance, but it is frequently done.

May I ask the Noble Lord, does he suggest there is any means, apart from a measure of this kind, whereby 50 or 60 authorities, who are now being put out of business, can get their charges revised?

If there is any difficulty of that kind, I should say there would be much less objection to meeting it by means of extended powers under a Provisional Order, because that does effectively retain the power of Parliament. A confirming Bill will have to be read the First, Second, and Third times, and it is a method of procedure which is much more rapid and much less expensive. I can see important objections to the method here suggested, but I can see very little objection to a Provisional Order. This proposal goes far beyond that and raises an entirely new principle. I do not think you will find anything on the Statute Book which enables a Government Department to impose a tax on the subject without the consent of Parliament. The hon. Member has also said that there is a great financial emergency, and I have no doubt that is so. But if there is, must it not be due to the fact that they have not asked for a Bill before this?

I can assure the Noble Lord this was impressed upon the Government over a year ago, and a Bill was definitely promised then, subject to the exigencies of the situation.

If anything, I think that supports the suggestion I make, that this is not a Bill which the Government should now proceed with. It is not a proposal that can be defended at this stage, when one considers the condition of the public mind with regard to fresh taxation. I do not wish to say a word against the Ministry of Health, but it has not got the reputation of being the most economical Ministry of the Government. I daresay that is an unjust view, but I merely remind the right hon. Gentleman the Minister that, whether justly or unjustly, it bears reputation of that kind at this moment. However, I base my objection on the much broader ground that a tax should not be imposed on the subject without the will of Parliament. I hope my right hon. Friend will see his way to tell us whether or not he assents to that principle, and, if he does, will he take steps to see that provision is made in the Bill for conserving that elementary right, which we in this country struggled for centuries to establish?

I cannot follow the objection which the Noble Lord (Lord R. Cecil) raises to this Bill. It seems to be based upon two features of the Measure. First, he says, it is going to tax the people; and, secondly, he says, that is being done by an uncontrolled Ministry. As we must all make up our minds upon this matter, let us see what will happen if the Bill is not passed. There are many water undertakings throughout the country, public and private, but mainly public. These have been subject to the same influences as all other businesses and undertakings, both commercial, municipal, national, and otherwise. They must find great difficulty in making ends meet with their present charges. If the Bill is not passed, all these local undertakings will be unable to get sufficient from their charges to carry on successfully, and the private undertakings will have to go. The result, so far as the public undertakings are concerned, will be that they will have to be supported out of the other rates of the local authority. They will be carried on as non-profitable undertakings by municipal authorities, and the ratepayers will have to pay for them in any case. That seems to me to dispose of one of the objections of the Noble Lord. The position is different in the case of purely commercial undertakings, but they are merely asking for the right to revise their charges in order to be placed on a proper commercial footing. As regards his other objection, that the Minister has the right to make the Order, if he will look at Clause 2 he will see that the Bill provides that before making an Order the Minister shall require the applicant to give notice in the usual way, and, in the event of objection, shall have an inquiry held. It is also provided that, if the Minister thinks it desirable, the Order shall be provisional only, and shall not have effect until confirmed by Parliament.

I think it goes further than that. It expressly says that he

"shall consider any objection which may be duly made, and in the event of any objection being made and not withdrawn, shall cause an inquiry to be held."

But he is not bound by the inquiry. The results of inquiries are constantly disregarded.

The Noble Lord is a lawyer, and he will admit that there is compulsion on the Minister under this procedure to bring in a Provisional Order in the usual way. The Clause further provides

"on the making of an Order under this Act, notice shall he given of the making of the Order … and if any local authority within four weeks from the date of such notice, give notice in writing to the Minister that they object to the Order and the objection is not withdrawn, or if for any other reason— "

That is an extra discretion on the Minister, but the first part is compulsory—

"—the Minister thinks it desirable, the Order shall be provisional only, and shall not have effect unless and until confirmed by Parliament."

If the hon. Member will look into this, he will see that there is no means of compelling the Minister of Health to proceed by Provisional Order at all. I agree he must hold an inquiry, but having held the inquiry, he can make his Order, regardless of what the result has been. I do not know about the Ministry of Health in this connection, but the Local Government Board are constantly arriving at decisions in the teeth of the results of inquiries.

I think the Noble Lord has again omitted to notice the effect of Clause 2. If an objection is made and is not withdrawn, the Minister shall, and must, do what is intended by the Bill. The Noble Lord has totally misconceived what this Bill does. It is not purely discretionary in its effects. It is providing a procedure for revising charges, on quite the same footing as many other similar things are done under the Provisional Order system. I therefore support the proposal, and I submit the House will be well advised to give the Bill a Second Reading.

I have been somewhat disturbed during this Debate, and my anxiety has not been allayed by the speeches we have just heard. We are told that it may be necessary for this House to sit right through August and possibly into September. I take it the House is very reluctant to do so, but is prepared to face the prospect so long as there is urgent legislation to pass. I listened very carefully to the hon. Member for Central Nottingham (Mr. Atkey) and also to the hon. Member for St. Pancras (Mr. Lorden), and from their speeches it is quite evident that the Government might have brought in this Bill a very long time ago, when it was first asked for. I do not know why they should bring it in at this moment, when the Lord Privy Seal has intimated that nothing but the most urgent legislation can be brought in, otherwise we shall have to sit here through all the hot summer months. I do not think it is quite fair of the Minister of Health to bring in a Bill of this kind at the present juncture.

In regard to the point raised by the Noble Lord, I really think the time has come when Ministers should learn to put into these Bills, when they are drafted, the necessary provisions in regard to these Orders. It is all very well to say that such points will be considered in Committee. It is to be recollected that in another Measure the Government were nearly defeated in Committee on that very point. It is perfectly clear that in such Bills as this the Government should put in a provision that Orders will be laid before the House. It is clear from the Bill as it stands that only under certain conditions, where complaint is made and objection taken, will Orders be laid before the House, and I do not think it ought to be left to the Committee upstairs. I think the right hon. Gentleman should say here and now that the Government itself will put down an Amendment, saying that in every single case these Orders shall be laid before the House for their approval. The right hon. Gentleman is one of the most skilful advocates in the House, and, naturally, he made a very skilful speech in defence of this Bill, but looking through the Bill, it makes one very anxious. Day after day, week after week, and month after month the Departments are gradually getting more and more power into their hands, and I think the right hon. Gentleman is taking very great powers. In this Bill he has all the power, and he can do practically everything he likes in regard to increasing the charges. I have looked through the Bill, and there is no appeal from the decision of the Minister. There is no appeal to a committee representative of all interests, or to the Law Officers of the Crown, or to a Judge, or to anybody else. There is absolutely no appeal from the mere dictum of the Minister, and I think the right hon. Gentleman should make it perfectly clear, before the Bill passes into law, that a proper appeal will be given.

There is one further point I wish to make, and that is, that the consumers seem to be absolutely at the mercy of the applicants and of the Minister. They are not represented at all. I have read the Bill rather hurriedly, I confess, because I did not know it was coming on, but, so far as I can see, there is absolutely no representation of the consumer at all. He is hit in every Clause, and he has not only got to pay extra charges for the water he receives, but he has actually got to pay for making an objection, for the Minister can put charges of his own calculation upon persons who wish to object, so that the miserable consumer very likely finds himself liable to pay for the objection, although in the end it turns out that the objection is valid. That is very unfair indeed. So far as I can see, this is a taxing Bill. It is just as much a taxing Bill as if you put so much Imperial tax upon the consumers of this water. Has the right hon. Gentleman made no estimate whatever as to what the extra charges will be? Has he the slightest idea what this Bill is going to cost the consumers of water? Is it going to cost them £100,000, or £5,000,000, or what will it cost? I think that, before going into Committee on the Bill, we ought to know what it is going to cost the consumers, and that the consumers of water all over the country ought to know to some extent what sort of a bill they have got to foot. The Bill has been brought in very hurriedly; nobody knew it was coming on, and I think the right hon. Gentleman made a most inadequate speech in defence of it.

I listened with some astonishment to some of the speeches of hon. Members. If this Bill were not brought in it would not be a question of what the consumers would have to pay for water, but there would be no water, and you would have districts in this country without water and in a grossly in sanitary condition. Water companies would go into the hands of a receiver or into bankruptcy, and the bankers would foreclose, and there would be no water supply of any kind. That is actually the position in a number of cases, and yet hon. Members say the Bill is not urgent, and ask what people have got to pay.

I am coming to that later on. As a matter of fact, this Bill ought to have been introduced 12 months ago, and it is not my fault that it was not. I have introduced it on the first possible opportunity that Parliamentary time would give me, and it has been on my conscience for some time that this Bill has not been introduced earlier, because it is very urgent in some cases. I do not say in many cases—I do not want to exaggerate—but there are quite a number of relatively small and weak undertakings, as hon. Members know, with a small capital of about £40,000, or £50,000, or £60,000, which are working actually at a loss. It is not a question of making a great profit. All these companies are statutory companies and have their rates of dividend limited, but they are working at an actual loss. Bankers have lent them large sums of money and are threatening to stop them altogether. That is a serious position, and I am sure hon. Members will realise it. I can plead that this Bill is not the exercise of Departmental powers dictatorially, or anything of that kind; it is an emergency Measure, and it is similar to other Departmental Measures which have been brought in. The President of the Board of Trade and the Minister of Transport have been given powers to revise charges for gas and tramways, so I am informed by those responsible.

That is my information, that this Bill is drafted on parallel lines, and I might say that, in 20 Private Bills which have been passed by Committees upstairs in this Session similar powers to those which are asked in this Bill have been inserted.

Obviously, because they have not got the money, and that is why I have to step in with this Bill. As to the representation of the public or the consumer, after all, it is the function of a Minister and a Department to represent the public. What other function have they got?

The Department is getting nothing out of this, and the function of the Minister is first of all to safeguard the public interest. He has as much interest in safeguarding the public as the Legislature has, and more, because he has a moral obligation. If he is charged with the responsibility of making an inquiry and hearing the evidence, and coming to a decision, I think it is very unfair to say that the Minister is not to be looked upon as representing the public. I do not know why he should be consulted at all, or for what purpose the inquiry is put in, if that is not so. It is a good point that the procedure by Provisional Orders might extend to local authorities, and I am ready to concede that. I think the arguments on that point have been sufficiently strong, and I am quite ready to make the concession now. I do not think there is any other point really of grave import, but if there is, I can assure the House—I am introducing this Bill because great pressure has been brought on me, and it is urgent—I am anxious to meet hon. Members in Committee, and I hope with that explanation they will allow me to get the Second Reading now.

Cannot the right hon. Gentleman deal with the point that the consumer is not represented and that there will be no appeal?

In Clause 2 the consumer is represented as far as the inquiry is concerned, and I have promised the concession in regard to Provisional Orders.

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.

Corn Production Acts (Repeal) [Expenses]

Resolution reported,

"That, for the purposes of any Act of the present Session to repeal the Corn Production Acts, 1917 and 1920, it is expedient to authorise the payment, out of moneys provided by Parliament, of—

Resolution read a Second time.

There is an Amendment on the Paper in the name of the hon. and gallant Member for Central Aberdeen (Major Mackenzie. Wood) on which I should like to ask a question. As I read it, he wishes to insert the words in the Act referred to in the latter part of the Resolution?

Yes, but does the Amendment go in the direction of limiting the purposes of the Act?

I beg to move, in paragraph ( b ), to leave out the words

"in England and Wales in the manner specified in paragraph (a) of Sub-section (1) of Section (1) of the Development and Road Improvements Fund Act, 1909,"

and to insert instead thereof the words

" and rural industries in England and Wales by promoting scientific research, instruction, and experiments in the science, methods, and practice of agriculture."

The Amendment raises a question of considerable substance. This Resolution provides for setting aside £1,000,000 for the purposes of agricultural education and research. The memorandum that has been distributed says that it shall be given for the development of agricultural education and research in Great Britain. When, however, we turn to the Financial. Resolution, and to the Bill, we find that the money is not set aside for that purpose in so many words, but it is set aside for certain purposes as specified in the Sub-section of the Act of 1909. When we consult that particular Sub-section we find that it does include agricultural education and research, but it also includes a number of other things which are quite different and distinct. It widens the scope of the object very much. For instance, on reading the particular Sub-section we find:

" ( a ) to aiding and developing agriculture and rural industries by promoting scientific research, and instruction, and experiments in the science, methods, and practice of agriculture."

I may explain that my Amendment adopts the words of the Sub-section down to as far as I have read out, but the Sub-section continues:

"(including the provision of farm-institutes) the organisation of co-operation, instruction in marketing produce, and the extension of the provision of small holdings, and by adoption of any other means which appear calculated to develop agriculture and rural industries."

That Sub-section is obviously very wide. There has been nothing said yet by any Minister on the Second Heading of the Bill to suggest that the Government intended any part of the million pounds to be devoted to the organisation of cooperation or the provision of small holdings. Does the Government intend that part of this money should be devoted to the encouragement of small holdings? Do they wish some of it also to go in the promotion of co-operation? If they do not, they ought to make it quite clear they do not, and strike out the objects to which this money may not be applied. If they do not do so they may take it for granted that there will be demands from those interested in co-operation and small holdings. I am quite ready to see some of the money devoted to small holdings, but I should like the Government to say now whether they intend that this should or should not be done. If they do not say definitely it will create endless trouble afterwards. I feel quite certain, whatever the intention of this particular Government may be, that future Governments will not be bound by it, but will go by the words actually in the Act of Parliament. If these words are adopted they will undoubtedly give future Governments power to apply and divert some of the money from the purposes of agricultural research and education to the promotion of small holdings and co-operation. To that extent the realisation of the object—a very laudable object—which the Government has at present in view will be prevented. I hope, whatever the Government is going to do, they will make their decision quite clear, because it is not clear at the present time. I ask that they should state clearly and without ambiguity to what objects they intend this money to be applied, and not merely state them in this House, but embody these objects expressly in the Bill.

I beg to second the Amendment.

I think my hon. and gallant Friend is very well justified in asking for more light upon this subject. It is within my recollection that Ministers in charge of the Bill up to the present, in describing the objects for which this £1,000,000 is to be spent, here only mentioned agricultural research and experiments, whereas undoubtedly the words to which they have referred are wider, as has just been explained. Therefore it ought to be made clear to the House whether as a matter of fact the Government intends this money to be, technically, at any rate, available for the wider purposes described, or whether they intend to limit it. Misunderstanding on that point may arise, if not for this Government for future Governments unless the matter is made clear. Personally, I have the feeling that probably it is wise that no part of this £1,000,000 should be devoted to small holdings, which is a very big and a very difficult question. This Government, like any Government, would like to be able to do more in the way of obtaining and equipping small holdings than may be owing to the financial difficulties in the way. I think it would be very unwise, therefore, to give any expectation that there was to be enlarged provision for small holdings out of this comparatively limited amount of money.

I imagine the Farmers' Union, whose action in asking for this money does them great credit, had not that purpose in their minds at all. I am not quite so certain in regard to co-operation. There is a certain sore of co-operation quite apart from the ordinary operations of the Agricultural Organisation Society, and I think possibly the Minister of Agriculture feels strongly that it is very important at the present time; that is, the encouragement of co-operation among the ex-service men who have already been settled on the land. These men, for one reason or another, are going to have a very difficult time indeed. The older-fashioned smallholders are very strongly individualistic and disinclined to cooperation, but these ex-service men have learned to work with one another in their service days and are anxious to cooperate and to organise, and the organisation of these ex-service men for the purpose of co-operation in regard to the sale of their supplies particularly is very, very difficult. That difficulty is, of course, because in general they grow the same things, and things which come on the market all at once, and it is difficult to organise efficient marketing machinery which will be in full working order for the short period of the year. I have said that this question of co-operation in regard to these ex-service men may have been in the mind of the Government and in the mind of the Farmers' Union when they asked for this money, because the big farmers everywhere, and the Farmers' Union particularly, have been most sympathetic to the case of these small ex-service men. At any rate, I think the Amendment of my hon. and gallant Friend will serve a good purpose in getting a little more exact definition of the purpose for which the Government want the money.

I do not complain at this Amendment being moved. In fact, it gives me an opportunity of explaining what precisely we have in mind. What the farmers ask for and what they desire is this: money for education and for research, and for what is known as agricultural organisation. In fact, I think they use those words. Therefore, in drafting the Bill and in drafting the money Resolution we took the words set out in the Development and Road Improvement Fund Act and these are the words which appear in the present Resolution. I cannot accept the Amendment, certainly not in its present form, because it would leave out on the one hand one or two very valuable things which I am sure hon. Members would not wish to leave out. It leaves out, for example, the words "including farm-institutes." In my opinion the provision of farm institutes is very possibly the best way by which we can spread agricultural education among the working farmers of the country. Nothing is better than the foundation of these farm-institutes. We have several already; in different parts of the country. We had to stop their foundation owing to-financial exigencies, and now we hope to be able to go on again. At these farm-institutes the sons of farmers or labourers go and get short courses near their own homes in winter time, and the women folk go in the summer time and get instruction in dairy work and poultry farming. It is at these places where I believe the greatest amount of good work can be done. I hope to see at these institutes the establishment of scholarships or maintenance grants, or whatever they may be called specifically, allocated to the sons of the agricultural labourers in the district. Therefore, I should greatly regret if these words were omitted.

I think not. If my hon. Friend omits these words from the Section in this Act, it seems to me it; might certainly be held—although I am not a lawyer—but it might be contended that the money was not to be given for that particular object. It would be a great pity if we were thereby stopped from carrying out this most valuable plan of farm-institutes. Again, my right hon. Friend opposite, the Member for the Cam-borne Division (Mr. Acland) pointed out that the organisation of co-operation, especially amongst ex-service settlers, was an object we ought not to leave out of sight. Again, I should say that the words "instruction in marketing" are words that ought not to be omitted, and I can imagine nothing more useful, especially for the smallholder, than instruction in marketing. There is no way in which I think the smallholder is apt to go wrong, through ignorance—or, let me put it, through want of experience—than in marketing.

7.0 P.M.

The course I suggest to the House at the present stage is this: We are not now laying down in any way what the money is to be devoted to. We are merely taking general powers for the devotion of the money in the wide terms of the Financial Resolution based upon an existing Section in an Act of Parliament. I would rather deprecate any hasty discussion, without having knowledge of these mat- ters, some of which have already been alluded to by the right hon. Gentleman and myself, and the limiting of the Financial Resolution. I can promise the House than in Committee and on Report, when we are dealing with the actual Clauses of the Bill, I will be prepared to consider these points in detail. In regard to some of them, I may say at once I shall be willing to meet hon. Members. For example, I should be quite willing to leave out the question of smallholdings; we are dealing with smallholdings in other ways. I do not think it is necessary, or desirable, that any part of this money should be devoted to smallholdings. All this point will arise on the terms of the Clause in the Bill. This is merely a covering Resolution. I do not want the Resolution to be unduly curtailed, and I would suggest that it would be better to pass the Resolution in its present form on the clear undertaking which I gave, that I will be prepared to consider in Committee a considerable modification of the Bill.

So far as the statement made by the right hon. Gentleman has gone, it is satisfactory to those of us who represent Scotland. Some of us have always been very vigorous supporters of the Smallholdings movement, but in this instance we suggest that, in view of the fact that specific sums have been set aside for the development of small holdings for Scotland, none of this money should be expended for that purpose. We were under the impression that the real object for which the money was to be provided was that detailed in the Memorandum on the Financial Resolution, that is to say, for the development of agricultural education and research, and that only. Certainly, so far as I am concerned, I think it will be more satisfactory if in Committee the right hon. Gentleman will accept an Amendment confining the money strictly to the development of agricultural education and research. If the right hon. Gentleman will accept that, as he says he will, I have nothing more to say than to thank him for his promise.

I would certainly say that the idea conveyed in the statement of the Minister, when this question was before the House on the last occasion, should not be carried out as the settle- ment of smallholders cannot be regarded as a legitimate object to which to apply this £1,000,000, and, if he so applied it, I am sure he would not be carrying out promises which have been made. When I say that it is not because I think it is anything but a most worthy object. The right hon. Gentleman ought not to allow himself to be diverted from the pure subject of agricultural education and research. If he does so, he will find himself involved in so many suggestions that he will run the risk of being overwhelmed, and the amount which could be employed to the many suggestions would be so small that little benefit would accrue. I notice the right hon. Gentleman made a reference to what farmers ask for. I understood that this was something which is to benefit the agricultural labourer.

Then why not consult those who are best qualified to speak for the desires and wishes of the agricultural labourer as to the agricultural education he would like to have. I notice special emphasis was laid on the education of farmers' sons. The labourer's son would not be immediately able to avail himself of this education, while the farmer's son would run a reasonable chance of succeeding in the near future to a farm—so that the benefits you desire to confer on one class are not benefits applicable to the other class. No one can be more sympathetic than myself with regard to the great difficulties the right hon. Gentleman is experiencing at the present time. I am not at all inclined to under-rate the valuable services he has rendered to agriculture. It must not, therefore, be understood that in the few remarks I make here I am depreciating in any way the real intentions of the right hon. Gentleman, but I want him to fortify himself so that he will be in a position to benefit the agricultural labourer or the agricultural labourer's son, and that he will take the most direct methods of doing this. I do not know whether he can do that best by consulting with the farmers. The labourer has a distinct voice in this arrangement, and I do hope the right hon. Gentleman will take the necessary steps and not be diverted from his intention. The small holdings question is far too large to be tackled with the sum of £1,000,000 sterling. There is a sea of trouble in connection with the small- holders, which this season we are unhappily experiencing is not calculated to improve. But an attempt to apply palliatives, such as are suggested, with regard to this comparative small amount would be useless. Therefore the right hon. Gentleman should not allow himself to be diverted in any regard from the purpose of definitely and specially benefiting the agricultural labourer. He ought to take his courage in both hands and refuse suggestions such as I have heard here this afternoon.

I agree with the right hon. Gentleman that it would be best that this matter should be considered on the Committee stage of the Bill, and that definite words should be put in as to how the money should be employed. No one seems to have suggested how, or considered whether, we can find £1,000,000 at all. I suppose that is taken for granted. Of course, representing an agricultural constituency, it is hardly for me to question that, but I would ask this House to look as closely as possible into all expenditure. If a million is to be expended, and there is room for it in agriculture, I hope that when the Bill is considered in Committee a definite understanding will be arrived at as to how exactly the money is to be applied, and, if it is given to any particular Department, whether a research Department or any other Department, that steps will be taken to see that there is reorganisation in that Department. We do not want to vote £1,000,000 for general purposes such as that under the Development Act. We want it given for some specific purpose which commends itself to practical agriculturists at the present time, which will improve the present position. It should be applied in considerable part for the benefit of the agricultural labourer. The hon. Gentleman who spoke last said he hoped that those representing the agricultural labourers would be consulted. I hope he does not suggest that we do not represent the agricultural labourers?

Sometimes we are referred to on this side of the House as if we had nothing to do with the labourers. All we agricultural Members on this side of the House are as interested in the labourers as any Member on the other side of the House.

I want to say one word in approval of the principles underlying this Resolution and commend the methods of the Minister of Agriculture in dealing with what is saved of the wreck of the Agricultural Act by taking the best way of promoting the industry— which is to promote education and technical methods in that industry. I wish he could infuse that spirit into the Board of Trade, and that the Government generally acted in that spirit in dealing with the industries of the country instead of really killing our industries by a tariff. We have advocated in the past the principles which the Minister of Agriculture has adopted after the recent disaster. The Minister of Agriculture has learnt a real lesson, and I hope he will ask his colleagues in the Board of Trade and other Departments to apply the same principles to develop the other industries of the country through scientific and technical education. Let me warn the right hon. Gentleman that the Board of Trade are putting a large tax upon the instruments which will be used in agricultural reasearch.

The hon. Member for the Holland Division of Lincolnshire (Mr. Royce) raised a point as to what is the policy. It was also raised before I came in. I was detained on the Railway Committee.

We are now on an Amendment; merely the terms under which the £1,000,000 shall be available. We have passed the point where we can argue the merits of the £1,000,000.

I was only going to devote a sentence to the £19,000,000 in the preceding paragraph. Will it be open to us to discuss the main Question?

On the Amendment I have only a word to say. As we are spending money on the rural industries in England and Wales by promoting scientific research, instruction and experiment, and in the methods and practice of agriculture, I wish to put in a protest on behalf of the Fisheries. I hope the hon. Member for Gillingham (Mr. Hohler) will find himself in agreement with me. The whole Resolution for agriculture and fisheries—

Am I not in order in protesting against the Amendment only including rural industries and not other industries? The situation is very serious for the fisheries, and I feel that we are ill-advised to vote this money solely for the rural industries.

In view of the statement of the right hon. Gentleman which is very satisfactory and for which I thank him, I ask leave to withdraw my Amendment.

Amendment, by leave, withdrawn.

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

Agriculture is the spoiled child of this Government. A whipped child gets some attention, and it has to be corrected, but in this case the fisheries are altogether neglected. A sum like £1,000,000 would be of the greatest service if it could be used to assist the fisheries, because they are going through the worst crisis anyone could possibly remember. To-day our fishery fleets are laid up to the extent of 75 per cent., and unemployment in the fishery ports is terrible. I am sorry to say, Free Trader as I am, that I view with alarm the present state of things. I do not suggest any quack nostrums such as the Government have proposed in other instances. With the exception of the matter of inspectors, the fisheries are being almost totally neglected by the right hon. Gentleman's Department. I must make this protest, and I hope in common fairness hon. Members opposite will support me. We have not heard any protests from the economists upon this Resolution, but here is a sum of over £20,000,000, and I have heard it put as high as £25,000,000.

May I ask you, Mr. Speaker, how under the Corn Production Acts we get fishes amongst the corn?

Should I not be in order in protesting against this subsidy for corn production and at the same time no money being found for the fishery industry?

The hon. and gallant Member always fishes with a very wide net, but I think it is too wide on this occasion. It would certainly be out of order to develop the subject of the fisheries, because this is a Resolution dealing with the Corn Production Acts, and the hon. and gallant Member cannot bring in other industries. He can protest against the total sum, but he must not develop the line of argument he has Been pursuing, because he can see what would arise if other hon. Members were to do the same thing.

I thought I should have been allowed a little latitude on this Resolution. After all, the two Departments are in one building, and I would like to have seen this money coming out at two exits. I think there is a great deal in the question now as to whether we can afford this money. I am afraid this sum of anything between £15,000,000 and £35,000,000 is on all fours with the £60,000,000 to the railways. I do not want to say a word in an offensive sense. I consider this a sop to powerful interests to influence them in favour of a certain line of policy. This money is to compensate the farmers for the dropping of the Agriculture Bill. From the point of view of an urban constituency, I do not see how we can afford this money, or what justification there is for this Resolution. There have been bitter criticisms of the mining industry being subsidised, but I do not think there has been half enough fights on behalf of the urban districts of this country. I certainly do not want to see any distinction drawn between the interests of agriculture and those of our urban industries. I think this is a thoroughly unsound principle, which I voted against in the case of the original Bill. I am glad this is proposed for one year only, but I must add my protest against it. I thought the hon. Member for Gillingham would have been the very first to support me, and not interrupt me in a hostile manner. I am protesting against this dole for agriculture. I hope other hon. Members will join me in this pro- test. I trust I have not said anything offensive to any of my hon. Friends opposite.

Question put, and agreed to.

Overseas Trade (Credits and Insurance) Amendment Bill

Order read for resuming Adjourned Debate on Question [ 5th July ], " That the Bill be now read the Third time."

Question again proposed. Debate resumed.

I have been twice interrupted whilst attempting to oppose the Third Heading of this Bill, and have only been able to get as far as to ask the hon. Gentleman in charge of this Measure what the present policy is in regard to the Empire of India. When the Second Beading of this Bill was taken, the hon. and gallant Member made some very extraordinary remarks about India. We are going to extend the guarantees under this Bill to all sorts of countries in Europe, including our late enemies, Bulgaria, Austria and Hungary, and, of course, to Poland, and Czecho-Slovakia. We are also extending it to our Dominions and, I believe, to China, but we are specially leaving out India, and according to the latest reports this has caused resentment in India and much heart-burning amongst our fellow subjects there.

I do not wish the hon. Gentleman to suppose that I am objecting to the scheme being extended to Austria, Bulgaria or Hungary. I only mention those places to show the contrast in the treatment of India. When the original Bill was introduced last year, I regretted that the Schedule was too short, and did not include countries like Austria. The reason given was that certain merchants or trading banks in India have not kept their obligations, and that therefore the whole of the people of India were to be penalised and not allowed to participate in the provisions of this Bill, and I think that is an impossible attitude for the Government to take up. I do not wonder that important interests in India have sent emphatic protests to the Government. This Bill is supposed to be for the benefit of British traders—

Notice taken that 40 Members were not present; House counted; and 40 Members being present—

I need not go further into this question of India, except to ask the hon. and gallant Gentleman to state the reasons why he does not propose to include India within the scope of this Bill.

The hon. and gallant Member said that although it is in the Bill it was not intended to extend the operation of the Bill to India. I want to know whether the Government see any likelihood of an early reversal of that decision. On this point I should be glad of the usual courteous reply of the hon. and gallant Gentleman, because it affects a great many important interests in the North of England. The second matter to which I wish to draw attention is the fact that the Government refuse to assist British merchants under this Bill who may wish to trade with Russia. I do not want to open up the old controversies on this matter, but when we are at the point of sending distinguished trade delegates to Russia, who, I understand, are still going out, and while for some four months the trade agreement with Russia has been in operation, and no attempt has been made to denounce it, I want to know why British merchants who see an advantage in selling goods to Russia to provide employment here should not be given the advantages of the Clauses of this Bill and of the guarantees the Government are offering.

What on earth is the reason? No British merchant is going to trade with Russia if he thinks he is going to do no business there or make any profit from it and no bank is going to accommodate him unless it is equally satisfied. But what is there to prevent the Government giving a guarantee which, in the present financial situation, might be useful to firms that can compete successfully for Russian trade? I was talking last week to an inhabitant of Reval, who gave me some very interesting information on this point. He informed me that 300 truckloads of goods were going over the railways from Reval into Russia every day. I asked him from what country the goods came, and he said that, although he could not give me exact information on that point, he could tell me that the shipping which came into Reval, which no doubt brought the goods in, came in the first place from America, in the second place from Germany, and in the third place (a long way back) from Great Britain. That means that the Americans are getting the bulk of the trade, the Germans are a good second, and the British a bad third, and that at a time when our trade has never been so bad, and when unemployment in manufacturing centres has never been so terrible.

I have always said that the provisions of the Bill were too narrow and too stereotyped; it is a small thing with which to cure the present trade depression or to help the recovery of trade. Still, it might do a little, and under these circumstances, I think it very regrettable that the Government have not included Russia in the Schedule. I urge this not for the sake of Russia, but for the benefit of British trade. No trader need take advantage of it unless he wishes. What was the reason given on the Second Reading for the exclusion of Russia? I hope the reason given was a hasty one and liable to correction as some of the Prime Minister's statements are. I hope that the hon. and . gallant Gentleman who told us on the Second Reading that the Bill could not be extended to Russia until Russia kept her obligations, will be able to make a different statement to-day. That is an old plea. It is one which has been used for years to prevent trade with Russia. I do not want to go into details of the arguments advanced in support of it, but I do wonder if the hon. and gallant Gentleman is really aware of the position. Russia is not repudiating her debts. What she says is that the question of her external obligations must be settled at a general conference, and that they cannot acknowledge British debts without discussing the French debts. Surely that is a very reasonable suggestion. They tell us they cannot discuss the question of their external debts except at a round table conference at which various other matters can be brought up. In the meantime, while we have this provisional trade agreement, it is fallacious to bring forward this argument in regard to pre-War obligations. I cannot bring myself to believe that the hon. and gallant Gentleman had consulted the Foreign Office before he gave the answer he did. I admit I did not give him notice that I intended to raise the point, but I do hope that to-day he will be able to give a different interpretation of the views of his Department when he comes to reply to me. The question of the pre-War debts of Russia must be left to be settled at a general conference when many other questions will also have to be settled. If we are going to wait for that, we shall lose every market which might provide employment for British workmen now idle.

To-day we are granting £26,000,000 to the Government to foster the export of British goods, a very worthy object indeed, and my only complaint is that the proposal is too narrow in its conception. It is too stereotyped to meet the situation. To-morrow we shall be framing plans to prevent goods coming into this country. We are going to increase the guarantee under this Act one day in order to artificially stimulate the export of British goods, and the next day we are going to adopt artificial methods to prevent goods coming into this country. Was there ever anything more absurd? To-morrow we shall have the hon. and gallant Gentleman who is backing up this proposal standing at that Box and defending with his usual ability measures for hampering the import of goods which can only stimulate our export. Of course I would not be in order in discussing tomorrow's business, but I do hope that the hon. and gallant Gentleman, when debating to-morrow's Bill, will remember to-night's business, and will attempt to meet some of our Amendments which are designed to whittle down an extraordinary state of affairs. I want to repeat what I said on the Second Reading of this Bill last year, for it still holds good, that the present conception of the Bill is altogether inadequate. It is a mere palliative for a terrible state of affairs. This sum of £26,000,000 surrounded with restrictions represents a comparatively small amount, which though it may be valuable to British merchants by itself, is utterly useless to restore our trade—a restoration of which must take place if we are to exist at all as a nation—and to support our population. It is utterly inadequate, and it is useless for the Government to attempt to foster British trade by artificial subsidies of this character. The only thing that can bring trade back is confidence and a return of prosperity to our customers, and it is towards that that the British policy should have been directed long since. It is useless to bring in Bills of this character unless you have a policy of that kind.

I would like to point out that the methods of procedure which are embodied in this legislation are entirely inapplicable to Russia. What is the good of talking about bills of exchange with Russia? What is the use of talking about any of the different forms of machinery involved in this Bill, and in the original Act, under existing circumstances? Any business that is going to be done with Russia at the present time will have to be purely by barter, and it would be far better to occupy our time in discussing something practical instead of wasting the time of the House discussing things which are absolutely impossible.

May I interrupt the hon. Member for one moment. He speaks with great authority, but I would like to point out that when the original Bill was brought in, the Government themselves promised that they would include Russia.

And I suppose they will when circumstances are suitable, but they are not applicable at the present time, and are not likely to be for some years to come. To discuss the matter now is simply a waste of time. The trading community welcome this Bill and the various supplementary arrangements which are being introduced on the original scheme. One hesitates to say anything in the nature of criticism of this legislation at all, but there is one matter some of us have come across which I think I am justified in mentioning, especially as it is a matter of personal experience. The Department which has been set up is supposed to be independent of the Foreign Office and of the Board of Trade. We in this House who have been agitating for the last 18 years for the establishment of a Ministry of Commerce, and for something to be done independently of the Foreign Office and of the Board of Trade, welcomed this as a first instalment towards those ends— this legislation of which this Bill is a part. We were assured by the Ministers privately in the Commercial Committee of this House that the procedure would be that anything done would be independent of the control of the Foreign Office. This is not the time to criticise the Foreign Office. Indeed the Foreign Office has nothing to do with trade, and; the staff at the Foreign Office do not want to have anything to do with trade, but at the same time they do not like-any interference with their prerogatives. What is it that has just taken place?

This Department recently sent out a representative to Lisbon, provided him with an office, and laid down certain functions for him to carry out. It was reported to me as the result of inquiries I made that he was carrying out those functions as a representative of the Overseas Department in Portugal. But a short time ago, his office was put an end to, and he was transferred to the Embassy. He now appears to be a commercial attachée to the Embassy. This is altering everything which we have up to the present been trying to do, it is reinstating trade attaches of the Foreign Office in the Embassy. In that capacity the attaché is not of the slightest use either to British or any other trade. It is simply a reversion to the old state of affairs, and makes things even worse than before, because we have been trying to get an independent Department to look after British trade, and it seems as though that effort is now to be of no avail. Whatever salary was involved in paying this Gentleman in Lisbon, and whatever expenses were being incurred, are now, I presume, being paid by the Foreign Office, and this is only another means of enabling the Foreign Office to get out of the promise distinctly made to this House that this should be an independent Department. I hope that my words will not be thrown away, but that this Department, if it intends to be a serious working Department, with a responsible representative in this House, will take care that its representatives, its officers, its expenses, are independent altogether, both of the Foreign Office and of the Board of Trade, and that, if there is any business to report or anything to be done, it shall be done direct to London and not through the Embassy or to the Foreign Office. I do not know whether this is really the right opportunity to embark upon a question which is, perhaps, wider than the mere terms of this Bill. I would only say that, provided that its terms are regularly and properly carried out in the manner laid down in the principal Act and contemplated in this Bill, we have nothing but welcome and approval for the project which is now before the House.

I should perhaps say that the question of the administration of the Department of Overseas Trade should be raised on the Vote in Committee of Supply, and not on the legislative proposals.

Two specific points were raised by the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy), one relating to Russia and one relating to India. The point with regard to Russia has been exhaustively and definitely disposed of by my hon. Friend opposite (Sir W. Rutherford), and, therefore, I will not refer to that; but, as the hon. and gallant Member has referred to the Indian position, I should like to say again, as I ventured to say on a previous occasion when this Bill was before the House, that I am very glad that the Board of Trade is not going to extend the operation of the scheme to India. There has been an outcry in some quarters in India as to the non-inclusion of India, and the Governor of the Imperial Bank of India has also made a protest. I must, of course, pay great attention and respect to any utterance or expression of opinion from one who, like the Governor of the Imperial Bank of India, is a man of high probity and great knowledge, though I respectfully submit that perhaps the full facts were not known to him; but the Manchester people, who may be supposed to know their own business pretty well—and they do a very large volume of British trade with India —have said that they do not wish that this scheme should apply to India. What, then, is the grievance, as expressed by the hon. and gallant Member for Central Hull, that is alleged to be felt by the Indian purchaser, and why is he vexed that this scheme does not apply to India? My hon. and gallant Friend takes up the matter by a wrong handle. He says that Bulgaria, Austria, Czecho-Slovakia, and other countries, are going to get credit, but that is not accurately put. It is not they who get this Government's credit or guarantee, it is the British exporter. If the British exporter in Manchester says that he does not want it, I do not think it lies in the mouth of so great an industrialist as the hon. and gallant Member for Central Hull, of one who has spent so much time in commerce and especially in the Indian export trade—

"Protecting" is a nice word in your mouth!—to say here that the British exporter to India does want it. Men in this country who know their own business and know something about Indian trade say, "We do not want the Government to give us these guarantees for India." It is not that certain Indian merchants cannot get credit; it is that the Manchester people do not ask the Government to help them by giving credit in regard to their Indian exports. Why does not Manchester want this? I think the reason should be made perfectly clear, because there has been a misunderstanding, judging by reports from the Indian papers, which makes it look as though we were ill-disposed towards Indian merchants, or did not know how the non-inclusion is going to operate. The great body of Indian traders are just as honourable and strict in the maintenance of their contracts as the most upright merchants in the City of London, but a certain small section of them, who bought Manchester goods when the rupee was 10 to the pound, now say that, since the exchange has fallen, so that they have to find 15 or 16 rupees for every pound sterling, they are not going to take up earlier purchases made from Manchester. I regard that, in plain English, as a dishonourable act. They break their contracts because the market has gone against them. They bought and accepted bills, and now refuse to take them up. They refuse the goods, and those goods, already shipped from Manchester to India, are lying there, and there is, it is supposed, a sum approaching £20,000,000 in acceptances in the hands of the English banks or exporting houses which have not been met. Those Indian gentlemen say now that credit should be given to Manchester exporters, and against Manchester's wishes, in order that Manchester may sell them goods at lower prices and at a time when they have outstanding, broken contracts. If they wish to be honest and honourable, they can get goods from Manchester, if they want fresh goods to sell, simply by paying cash for the goods, as they go, or by taking up the bills, which they have left dishonoured, for goods previously purchased. It would be very foolish of Manchester merchants—and that is the point of view they themselves take—to trust these people again with consignments of goods, which would certainly be more cheaply sold to them than those sold some months ago; in other words, to send further goods to them under this system of credits, and to allow these, as I think, rather dishonourable Indian importers to get a fresh lot of goods more cheaply than those which are lying in the Indian docks unpaid for which they have not taken up, and will still not take up, by reason of the fact that they would be, or hope to be, able, under these fresh credits, to buy cheaper goods from Manchester. Their argument is a very wrong argument indeed.

They say that the reason for their not being under any obligation to take up their bills or the goods is that the Indian Government fixed the value of the rupee at 2s. when the purchases were made, that that Government is in fault, and that they are not going to take the goods until the Government gets them out of the difficulty in which they think it placed them by previously fixing the rupee at 2s. They say that the Indian Government induced them to buy under a covert promise that 2s. would be the value of the rupee, and, the rupee having gone down to 1s. 3d., they now say they will not pay at that rate of exchange. But would these merchants in India have repaid the extra profit to the Indian Government if the rupee had gone up to 2s. 3d.? Of course they would not. What they want is, Heads I win, tails you lose, and for that reason they have dishonoured their contract. The outcry in India against this Bill has, in my opinion, been engineered by a section of Indian importers who wish to embarrass the Government, and who call themselves non-co-operators, and I believe that they are fining some of their members largo sums if they meet these bills. That is a very dishonourable and unworthy act, and I do not see that in these circumstances the hon. and gallant Member for Central Hull has a leg to stand upon in asking for the inclusion of India in this scheme for the present. Let those who have a grievance in India about non-inclusion do the honest thing. They will find honesty to be the best policy. Let them meet their bills and take up the goods. That is the remedy, and until then I hope the Board of Trade will maintain its policy of non-application to India. For that reason I disagree and, I submit, with good reason, with what has been said by that past master of the export trade, the hon. and gallant Member for Central Hull, and, while thanking the Board of Trade for this proposal, I shall support it in every way, and more particularly in respect to the temporary non-application to India.

As there will be more appropriate opportunities, I will not, at this stage, follow the hon. Member for Edgehill (Sir W. Rutherford), whom I thank for his appreciation of the Bill, into the question of administration. I will merely say that it is most important, in dealing with a foreign country, that the whole of the Mission, from the Ambassador downwards, should be fully seised of the trade position, and able and willing to deal with it. I think the hon. Member will find that in nearly every Mission that has been satisfactorily realised. With regard to Russia, what I said on a previous occasion was a fully considered statement, and I must certainly adhere to the position that the basis of credit is the acknowledgment of obligations. The Russians, as I then pointed out, could have had a final settlement in the negotiations which took place, but, as the Prime Minister has said on several occasions, the fact that a final settlement was not arrived at with Russia was not our fault. We should be acting contrary to all the dictates of commercial policy and of reason if we were to extend this system of credits until we knew that obligations entered into were going to be acknowledged, because, after all, the acknowledgment of obligations is the basis upon which all credit is raised. For these reasons, as I have already fully stated, I cannot agree that it would be reasonable to extend the scheme to Russia at the present moment.

With regard to India, I think the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) has somewhat misconceived the purpose of this Bill. Its purpose is not to supplant the ordinary trader and the ordinary financier in their business, but to supplement their activities where necessary. The position in India is not like that of some countries where there is a depreciated exchange, and where it is not possible to get the ordinary credit facilities through the ordinary financial channels. It is far from that. I am perfectly satisfied, after very careful consultation with the banks doing business in India and with the Manchester Chamber of Commerce, that there is every facility for the carrying on of trade with India at the present time through the ordinary channels. That being the position, it is not a case of being unreasonable to India; it is that at the present time no ground exists upon which the facilities would be made use of even were they granted. That, I think, is a quite sufficient reason.

8.0 P.M.

India is not excluded. All that is happening is that we do not propose to extend these facilities to India at a time when full banking facilities exist for doing business with India. It has been pointed out by one or two hon. Members that, if this were necessary in order to carry on trade there, the first people to ask for it would be the people in the home trade. You would expect Manchester to be asking to be given these trade facilities, and you would expect the banks to be asking that such facilities should be accorded to their customers. The House will remember that all the applications under this scheme come through the banks. That is done for many reasons, but principally to ensure that we are not undertaking business which the banks could undertake. So far from finding that the exporters desire this credit to be extended at the present time, we find, as has been pointed out, that neither the great Manchester exporters, nor the Manchester Chamber of Commerce, nor the banks, regard it as in the least necessary. Manchester is quite able to do its business in conjunction with the banks in the ordinary way. If times should change, and if the occasion should arise when there was a useful need for this—if there was business which ought to be done with India, which the banks had not the funds for doing, and which would not go through the ordinary channels—it would always be open to us to reconsider the position. India, therefore, is not excluded from the Bill. It was a work of supererogation to include it at the present time, when the banks can give the credit required. I hope that the House will now give the final stage to this Bill which has passed all its previous stages.

I have taken considerable interest in this Bill, but I am bound to say I do not quite like the form in which it is finally presented to the House. Apparently, under the old Bill there was only one method by which the Government could guarantee the credit for an export transaction, that was that they had to find the cash or its equivalent. Now they are taking power, not to find the cash, but to back somebody else's bill, and I do not like it. [An HON. MEMBER: "It is the right way!"] It may be the right way. It is such an easy thing to put a name on the back of a bill. That is very often done without proper and diligent inquiry being made into the position of the person who is conducting the transaction, and I say that the risk to the Government of bad debts is very much increased by this extension of the system. Now we hear, the Minister tells us, that the last scheme had not been very largely taken advantage of. I think only about £750,000 of credit had been actually completed, and that £2,750,000 had been applied for. That is not extensive for a Measure of this kind, and I am not at all sure that there is any greater justification for this present Measure than there was for the last one. I certainly do not like the exclusion of India, and the speech of the hon. Member for Farnham (Mr. A. M. Samuel) has told us exactly why the Government is going to exclude India. It is a punishment by somebody in regard to certain commercial transactions, and it is practically being done at the instigation of a big body of merchant exporters of Manchester who had been conducting trade with India in cotton piece goods, and they have got long stocks and the Indian has not completed these transactions in a satisfactory manner. That may be a reason for refusing the. extension of a scheme such as this to the buyers of cotton piece goods, but it certainly cannot be a justification for refusing the extension of this scheme to, say, the exporters of bridges, or girders or contractors' plant, or iron and steel, who have not been treated by the Indian buyers in this way, and I think the Government should have taken powers of discretion.

We have powers of discretion. India is not ex- cluded. At present we are not entertaining applications because we have evidence from the banks that the business can be dealt with in the usual way. He will find there is full discretion under the Bill.

I do not think there is any Member in the House who has listened to the Debate who did not think that India is excluded from the Bill. The hon. Member for Farnham gave us the reason why India was excluded from the Bill, and now the representative of the Government says that India is not excluded. I dare say facilities for exporting to Australia or the Malay Straits are sufficient at the present moment without having recourse to a scheme of this sort. I believe the exchange with Australia is very much disorganised, and at the present moment there is very little Australian money in this country to meet payments for export to Australia, and I also believe that the Australian Government have put an embargo on the export of capital from Australia to this Country. If that is so, I do not see how you can establish an export trade in a country that puts an artificial embargo on the trade between the various parts concerned. I do not want to obstruct the passage of this Bill in any way, but I should like to know if the Minister can tell me whether there has been any extension of the applications under this Bill since he last spoke. Is it showing any progress?

Yes. There has been considerable progress. One contract has been provisionally sanctioned for a very large sum, over £2,000,000. There are a large number of smaller applications.

I have no wish to obstruct the passage of the Bill, and I wish it every success.

I want to ask one question in connection with trade with Russia. There is one trade in which Russia, is the only market, and that is for pickled herrings. I do not think there is any reason why a portion of the Bill should not extend to Russia, though she does not acknowledge certain obligations; but I am afraid we are in danger of cutting off our noses to spite our faces in this matter. The herring industry, in which both England and Scotland are involved, is a trade that is languishing at the present time owing to the closed markets of Russia. I would impress upon the Minister responsible for this Bill that from that point of view alone millions are involved in this industry, and at the present time there are scores of thousands of men and women idle on account of the Russian markets being closed to this industry. I do submit to the Minister that this is a very substantial industry in the country, and one that will finally die unless the Russian markets are open. He ought to say whether the operations of this Bill could not be extended to Russia in order to facilitate trade between those engaged in the industry and that country.

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

Bill read the Third time, and passed.

Salmon and Freshwater Fisheries Bill

As amended ( in the Standing Committee ) considered.

CLAUSE 1.—( Increase of maximum licence, duties. )

(1) The maximum licence duties that may be imposed in relation to salmon or freshwater fish under the Salmon and Freshwater Fisheries Acts, 1861 to 1907, or any Provisional Order made there under, or under the Fisheries (Ireland) Acts, 1842 to 1909, shall be double the maximum licence duties which may be imposed at the passing of this Act.

(2) The expression "freshwater fish" means fish of any kind other than salmon which live permanently or periodically in fresh water.

I beg to move, in Sub-section (1), to leave out the words "or freshwater fish."

I have never heard any explanation in the House as to why it is necessary to increase the duties for taking salmon, although I can well understand there are some reasons for it; but cannot, for the life of me, understand why it is necessary to increase them for freshwater fish. Subsection (2), to which I have also an Amendment, says:

But the people who take freshwater fish are not, as a rule, wealthy men; and I do not really see why it should be necessary to double the duties. One hundred per cent. is an enormous increase in anything of this sort. We have not anything like doubled the duties on other things. I do not mean luxuries, I mean licences on bicycles and that sort of thing. I think the hon. Gentleman in charge of the Bill might explain to us why it is necessary to include freshwater fish at all? I will wait for his explanation.

I beg to second the Amendment.

It being a quarter past Eight of the Clock and there being Private Business set down by direction of the Chairman of Ways and Means under Standing Order No. 8, further Proceeding was postponed without Question put.

Private Business

COUNTY OF LONDON ELECTRIC SUPPLY COMPANY BILL [ LORDS ] (BY ORDER).

Order for Second Reading read.

Motion made, and Question proposed, "That the Bill be now read a Second time."

I beg to move to leave out from the word "That" to the end of the Question, and to add instead thereof the words

In the Bill of 1908 the whole power of purchase was given to the London County Council as the central municipal authority, and the year 1931 was fixed as the year when all these undertakings should fall in and be purchased. That went on for some years, and then in 1918 the Electric Power Supply Committee was appointed by the Board of Trade, which made several recommendations which are particularly applicable to London. On page 5 of their Report they said:

Following on the Report of that Committee the Government in 1919 introduced the Electricity Act. This set up Electricity Commissioners and gave them power to allocate the country into different districts and in them to call conferences or try to obtain schemes from the municipal undertakings and the private companies with a view to unifying the supply in the districts, with the idea of getting larger stations and a cheap supply to the users. So far as London is concerned the Electricity Commissioners issued a notice on 17th July last year and provisionally determined what was called the London and Home Counties area,— what we might call the Greater London area. It consisted of the County of London and Middlesex and parts of Berks, Bucks, Essex, Hertford, Kent, and Surrey, and in the area covered by this provisional scheme is the area which is proposed to be dealt with in this Bill. Having prescribed the area by this notice issued last year the suppliers within the area have been working ever since trying to put forward a workable scheme for the London and Home Counties area. In that area 37 municipal boroughs, county boroughs, ordinary boroughs, and urban district councils have agreed to put forward certain schemes for the consideration of the Electricity Commissioners. In conjunction with these municipal authorities 9 of the 14 electric companies in the Home Counties area have joined in the conferences and have agreed to put forward schemes for the Greater London area. Of the five companies that have not put forward any scheme and have not joined in the conferences which have been held to consider this question of electric supply for this very large one is the County of London Company, whose Bill is before the House.

I hope the House will agree that we have put forward a good case that the County of London Company under present conditions are not entitled to a Second Reading of their Bill. They have held aloof from the conferences. Although they were not part of the conference of municipal authorities and companies who have been working together, they had power if they so desired to put forward a scheme to the Electricity Commissioners, but they did not put forward any scheme. The inquiry held by the Elec- tricity Commissioners into the schemes put forward took place last month. It began on 14th June, and schemes were put forward by the London County Council, by the conference of local authorities owning electricity undertakings in Greater London, including the borough councils in London and some of the urban councils and borough councils outside London, and by the London Electricity Joint Committee, 1920, Limited. These three bodies put schemes before the Electricity Commissioners, and we are waiting to hear the result of the Electricity Commissioners' decision as to which scheme of the various schemes put forward it approves.

The County of London Company are asking for powers in this Bill to put up a large generating station at Barking on the river. In the evidence which they gave before a Committee of the other House it was clearly proved that the Order to which they refer in their case for the Bill, namely, the 1913 Order, was an Order under which they obtained the first part of the property at Barking. That Order was called the Romford and District Order, and it was obtained by the County of London Company in order to supply Romford and the immediate neighbourhood with electricity. Owing to the War they were prevented from carrying out that Order and from building the station. I presume it was going to be a small station at that time, in order to supply the needs of Romford and district. During the War, and up to 1918, they obtained powers to purchase more land, and to-day they have a good deal of land on this particular site. The scheme which they are now putting before the House in this Bill will enable them to put up a generating station, or really three stations, each of which will provide 200,000 kilowatts, so that, altogether, they will have generating stations capable of producing 600,000 kilowatts. I submit that, in view of the whole question of the electricity supply in London and Greater London being in the melting pot, and in view of the fact that the Electricity Commisisoners are considering the schemes which have been put forward by the other local authorities and some of the companies in the Greater London area, this House should not allow a private company to come in and have the power to erect this very large station.

I do not think the company have made out any case for putting up this large station for their present needs. The County of London Company at the present time have two stations in London, a station in the City Road and a station at Wandsworth. The maximum load of the City Road station is 10,000 kilowatts, and the maximum load of the Wandsworth station is 20,000 kilowatts. That gives them a supply of 30,000 kilowatts from the two stations in London. In the case they have put forward for a larger generating station, they say their present need is 26,000 or 28,000 kilowatts, and that in the course of three or four years they will require an extra 14,000 kilowatts for their supply in London, and that they will require for Romford and district a supply of 10,000 kilowatts. To put it in round figures, they will require a supply of 50,000 kilowatts instead of 30,000 kilowatts which they now get from their two stations in London. On the evidence given by some of the engineers before the Committee of the other House we may take it that it is from 50,000 to 54,000 kilowatts that they will require. Then there is a probability that they may have to supply the railway companies in their particular districts with another 50,000 kilowatts. To make it a round figure, so far as I have been able to understand it, they may require during the next three or four years 100,000 kilowatts, while to-day they have only a supply of 30,000.

If the company wants, immediately, a small quantity of extra electricity, under the Electricity Act, 1919, the Commissioners have power to arrange that they can get that supply from adjoining companies, and I believe that in their case when they wanted an extra supply they were able to secure from the City of London Company 10,000 kilowatts, which gives them a supply to-day of 40,000 kilowatts. If we take 40,000 kilowatts as the supply they require at the present time, and 54,000 as the maximum they will require for their demands from London, they are only short of 14,000 kilowatts. In order to supply this further 14,000 kilowatts, and probably the 50,000 kilowatts which they may require for supplying railways, they may require 64,000 kilowatts extra; but they come to the House with a proposal to put up three stations capable of producing 600,000 kilowatts.

I have read the evidence given before the House of Lords Committee, and it will be open to my hon. Friend to give his version. That, as I as I understand it, is the case which is being made for this Bill. I suggest that in view of the fact that the whole thing is under consideration, and that the Greater London electricity supply scheme is being reorganised on a proper basis, we ought not to allow this company to come in and give them powers to put up these large stations. I shall be told, probably, that they only propose to put up these large stations if they get the consent of the Commissioners. My answer to that is that in the opinion of the expert engineers who have given evidence before the Electricity Commissioners for the Greater London scheme, in fact the whole evidence, is against putting up any large super-station at the present time. There are many reasons why it should not be done. One is that the cost of putting up the station at the present time would be very great, not only with respect to building, but to the purchase of the necessary machinery. In view of the opinion of the expert engineers given before the Electricity Commissioners, I submit there is no case for this company coming here and trying, if I may respectfully say so, to jump the patch, and to get powers to put up these very large stations down the river at Barking. It is clear by a statement issued by the company itself that what it wants is not to put up a station to supply its own deficiencies, but to get in first to have the first large station for bulk supply in London. In its statement the company says: takings in London. Clause 13 of the Bill says that this new station, if built—it is very doubtful if it will be built—shall be purchased within seven years from 1918— that is, 1925. If not purchased by 1925, then, under the provisions of Clause 13 as it has been amended in the other House, the Electricity Commissioners shall decide the price or compensation which shall be paid to this company if this station has to be bought out. From the London County Council point of view, we are much interested in this matter. In 1931 the London County Council will possibly be purchasing the City of London Company, Wandsworth and City Road stations and the mains connected with them, and if this company make electricity in bulk in this new station, they will, no doubt, discard the London stations and simply supply in bulk from this new station on the river.

That would mean that the London County Council would have to buy all the companies' property in London and compensate it for what is called severance from the new station, as proposed in the Bill. This part of Barking is entirely outside the London County Council area, and under our powers of purchase we cannot purchase anything outside the area. The local authorities concerned in the district of Barking also cannot purchase. So the county council would have to pay a very large sum for severance compensation for the part of this station which supplies London. That is, the station would be left in the hands of the company itself, and you would have this particular company with the power of supplying in competition with any scheme that would be set up under the Electricity Commissioners after the recent inquiry.

In view of all these circumstances, the House should not give a Second Reading to this Bill. In 1919 Parliament passed an Act which set up electricity com- missioners to re-arrange the electricity supply in various areas of this country. That is proceeding so far as London and Greater London are concerned. While that is going on, before any decision is arrived at by the Electricity Commission, this Bill is brought in to allow these people to be first in the field. I cannot fathom why this company is pushing forward this Bill, because on the figures which I have given, which cannot be controverted, and the evidence given in the other House, they do not want this site, and they do not want the station for their own immediate supply. The quotation which I have read from their own case proves that they are pushing forward this Bill to be first in the field with a super-station. Specialist engineers have declared that on no conditions would they build a super-station for the next few years, and in view of the expense of carrying a cable so far down the river as this station would be, they are in favour of building stations much nearer the centre of London. If the Second Reading is passed to-night, then, in view of the compensation Clauses, some Instruction should be given to the Committee which will consider this Bill, to see that the London County Council are not unfairly dealt with if part of this station is to be bought out in 1931. I hope that the case which I have put will convince the House that this Bill ought not to have a Second Reading, that it ought to be postponed until after the Electricity Commissioners have made their decision, and in the interests of getting a cheap supply of electricity in London for all parties.

I have much pleasure in seconding this Amendment on behalf of one of the areas outside the London County Council jurisdiction. The proposal made in this Bill reminds me of a story which is told about the great General Blucher, who, after the Battle of Waterloo, is supposed to have paid a visit to London. After being taken through the cheering crowds in the principal parts of the city, he was asked his opinion about London, and he said: "What a magnificent city to sack." There are lots of economic Bluchers about just now, who look upon London as a milk town, which may be milked in consequence of the monopolist powers which they may be able to obtain. I come from a district where we have incurred great expense for the purposes of advancing manufacture and providing cheap power for the benefit of the community among which we live. We have run some great financial risks, and done our best to develop electrical power, and we have succeeded in producing very cheap electrical power in one of the East End districts of London—West Ham— which is a poor area, and we have in- vested something approaching £2,000,000 in providing an efficient supply of electricity.

In the old days it was each district for itself and the devil take the hindmost. We all established our individual systems without much relationship to each other, and very often without regard to the circumstances of the various localities; but in recent years we have discovered the necessity for co-ordination. From every point of view, from the point of view of cleanliness, of economy in the consumption of coal and of efficiency, electricity ought to be developed to the highest possible extent. It is not a question as between municipalities and private companies in the ordinary sense of the term, because in this particular sense the private companies have co-operated with the municipalities in developing a scheme whereby London might be properly organised for the supply of electrical power. Of 14 companies in the London area, nine have co-operated with the municipalities. In 1919 this House agreed as to the necessity of this coordination, and it provided for the appointment of Electricity Commissioners, experts who were to go into the whole subject and to bring forward or consider schemes which would have for their object the re-organisation of this particular matter. Those who do not agree with public authorities providing public necessities may have certain prejudices, but in this case the majority happens to be against them. Not merely have the municipalities joined in the principle of co-ordination, but the majority of the private companies also have done so.

We know what is happening in the inner London area. It is becoming increasingly difficult to find means of expansion. The tendency is for great industries to go more and more outside the inner area in London and to place themselves in Essex and Kent along the river banks. Some of us have a suspicion that the object of this company is not so much to meet the immediate necessities of their own customers inside the London area as to become practically a standard monopoly in an area which is bound to develop industrially as London grows out and out. Consequently we look upon this company as trying to jump the pitch for the purpose of developing a huge monopoly. Already schemes have been proposed before the Electricity Commissioners. Our own district, East Ham, Poplar, Barking, and the districts in the eastern area of outer London have coordinated and brought forward schemes. Other districts have done the same. The schemes are for bringing the whole of the electrical supply of London under one coordinated system. An extension of the powers of private companies in areas where the public authorities have sacrificed a great deal financially in order to meet the necessities of the situation and have invested huge sums in developing industrial power, ought not to be threatened with the possibility of the formation of a huge private company.

Gas companies in the various localities have not been allowed to go outside their chartered rights in their own districts, but in this particular case we have a private company, whose main line of operations is one circumscribed area, claiming to go to the outer area of London and there to establish a new monopoly on the plea that they want to provide customers in a totally different district. That is a direct attack on those authorities which are already running great risks in meeting the situation in their localities. I hope that the House will at least wait until such time as the schemes now being considered by the Commissioners have been dealt with and a report has been made to the House as to the result. Private companies are interested equally with public bodies, for, as I have said, there are private companies in the East End of London who are interested in the co-ordination schemes now being put forward. I hope that if the House does not reject this Bill, it will at least postpone it.

I submit that a great deal of the fear to which expression has been given by my two hon. Friends is entirely unfounded. In its wisdom this House set up a statutory body, the Electricity Commissioners, and this Bill proposes neither less nor more than to carry out a great enterprise absolutely essential for the effective and efficient supply of electricity in London under the direction and supervision of that body. The hon. Member who has just spoken referred in his delightful way to what he called "the economic Bluchers abroad in the East End." I think it would be a very excellent thing for the industrial enterprise of this nation, and for the opportunities of employment if there were a number of economic Bluchers abroad taking every possible opportunity of creating employment. May I give the history of this undertaking? The area of supply of the County of London Electric Supply Company is 22¾ square miles in the County of London, and 158 — 19 square miles outside the county of London. The increase in the supply of the company has been from 17,000,000 units in 1910 to 50,000,000 units in 1920. The powers sought in this Bill are required for a station at Barking. I am afraid that the hon. Member who moved the Amendment did not quite do justice to the Bill, for he spoke about the number of stations contemplated and the immense power which, he said, was sought in the Bill. Statutory powers for the promotion of this scheme were actually obtained in 1913, but the project was suspended on account of the War. The scheme at that time was absolutely necessary to meet the statutory demands upon the company. The company obtained further financial powers in 1918, but the Electricity Supply Act, 1919, prevented the erection of the authorised station without the consent of the Electricity Commissioners. When that consent is given by the Commissioners they may attach any conditions which they may think desirable. This great corporation is not by any underhand methods or any super session of the authority given to the Commissioners by the Act of 1919 trying to secure the right to erect this power station. The whole scheme has been conceived, and will be carried out, under the supervision and with the approval of, the Electricity Commissioners. In March, 1920, an application was made to the Commissioners for consent to erect the authorised generating station.

One hundred thousand kilowatts. An inquiry was held in October last, at which the London County Council and all other opponents were fully represented, and they passed the scheme. Then because of the limitation of the company's powers, the Commissioners postponed their consent—very properly—until after the date fixed for the submission of the scheme to the County of London under the 1919 Act. I should like to emphasise that this is not a new project, and that the Bill does not contemplate interference with the London electricity supply at all. The project has been in actual process since 1913, and would have been realised had it not been for the restrictions imposed by the War in the first place, and those applied under the 1919 Act in the second place. The Bill contemplates enlarging the area upon which the company may, if they obtain the consent of the Commissioners—everything stated in the Bill is subject to the consent of the Commissioners—erect their generating station, and provides for the closing of certain roads and footpaths. It also confers upon the company certain financial powers of a purely domestic character to enable them to raise additional capital which they will require, and finally, it enables the company to constitute the generating station and certain other works as separate undertakings. It is clear on the face of the Bill that there can be no interference at all with the powers of the Electricity Commissioners, and if this Bill becomes an Act, it will be inoperative unless it has the approval of the Electricity Commissioners. The site of the proposed generating station is outside the company's limit of supply. The Electricity Commissioners under the Act of 1919, in giving their consent, can impose conditions upon the company that the station shall be purchasable by the Joint Electricity Authority, or any other public body. The Bill as it was originally introduced in another place proposed, with the consent of the Electricity Commissioners, to substitute for certain provisions of a similar character under the Company's Act of 1918, provisions as to the terms on which the company would sell the separate undertakings, if acquired compulsorily before the 30th July, 1925. In place of these provisions, there was substituted a Clause expressly directing the company, if so required before the same date, to sell the separate undertakings to any general electricity authority which might be established for London, upon terms to be settled by the Electricity Commissioners.

In opposing this Bill my hon. Friends would appear to possess a monopoly of all the wisdom there is in regard to electricity supply. The company seeks for nothing more than developing its electricity supply for the benefit of the people of this great Metropolis. under the supervision and control of the Electricity Commission, and it will be observed that the taking over of the station is at the option of the electricity authority, who, in point of fact, may take the station or leave it. There are provisions in the Bill for the protection of local authorities and other local interests, and these, of course, are naturally of a purely domestic character. Local interests are perfectly satisfied with the scheme which we have submitted, and no local opposition has been raised to it. No question of principle is involved. The Bill simply provides that a generating station, for the construction of which the company have already powers under their 1913 Act, shall not be erected without the consent of the Electricity Commissioners. The company at present is in urgent need of increased generating power to enable them to comply with their statutory obligations. That need was proved up to the hilt by an inquiry held in October last, and there is no dispute as to its urgency. The sober truth is that this proposed station will form, with the approval of the Commissioners, a really practical contribution to the provision of an abundant supply of electricity for the use of the people of London. Because a scheme is a great and comprehensive scheme, a scheme which has had its birth in the great ideas of men who see further into the future than others who have preceded them, it ought not, I submit, to be condemned by this House. I wish to make it clear that the company only require a station to make good their own requirements up to 100,000 kilowatts, and applications made to the Commissioners specifically set forth this limit to the volume which they require. All this project has been most carefully considered by the Ministry of Transport. Do not forget, whatever we may think in this House—and I suppose we all think respectfully—of the wisdom of another place, that this Bill passed through another place after a most critical and meticulous examination of its principles and details, and therefore it ought not to be cast lightly aside in this place. I will read an extract from the report of the Ministry of Transport on the Bill:

Do I understand the hon. Member to say that the work of this company is outside the area of the London County Council?

Yes; there are 158 miles outside and 22 miles inside. The London County Council and a conference of local authorities, the other opponents of the Bill, claim to defend the interests of the contemplated Joint Electricity Authority. I suggest to the House that the interests of any body of the public will receive ample protection at the hands of the Electricity Commissioners, a body of distinguished men set up by this House, which is, if I may say so, discharging its duties, under great difficulties, with great efficiency since its incorporation. It may happen that the London County Council and the local authorities represented on the Conference may have no claim in the future, and certainly have none now, to speak on behalf of the Joint Electricity Authority, because it has not yet been established, and they may not have representatives on that body when it is established. At the present moment the local authorities have no local or other subject matter in this Bill which qualifies them to oppose it. I contend that the Bill cannot in the least degree injuriously affect the creation or subsequent administration of the Joint Electricity Authority. The Electricity Commissioners have entire control of the conditions under which the powers of the company shall be exercised, whether for the purposes of the company itself or for the benefit of the whole body of con- sumers, and that, in any case, the Joint Electricity Authority will have the option of purchase.

The rejection of this Bill would seriously hamper a great enterprise conceived in the interests of the people of London, and I suggest that this House ought to give the fullest encouragement to schemes of this kind. Leaders of industry, who are prepared to put to the test the whole of their experience, their great industrial energy, and their capital in order to build up industries of this kind, ought to receive the fullest possible measure of encouragement from this House. This is only a part, but an essential part, of a great scheme affecting the electrical supply of this great city and its surrounding areas, which we all hope will develop steadily in the future and enable the electricity supply of this great area to be efficiently and economically distributed to the advantage of the people. I strongly commend this Bill to the House, and I sincerely hope that His Majesty's Government, having already indicated their assent to the Measure, will support us in carrying it into law. At all events, I ask the House to give the Bill a Second Reading, and I am quite sure, on the advice of my hon. Friend the Parliamentary Secretary, that anything in the Bill which can be modified to safeguard the interests of any body representing the people of London will be cheerfully accepted by the promoters of the Bill in Committee upstairs.

I have listened with much attention to the various speeches which have been made on this Measure, and I would like to take this opportunity of congratulating my hon. Friend the Member for Central Southwark (Mr. Gilbert) for the manner in which he dealt with what he must have known was a very difficult task in opposing a Measure that is brought forward, not only for the benefit of the people in and around London, but for the people who are looking for electricity to be supplied to them in order that they may be able to carry out their work in the most economical and efficient manner. It seems that my hon. Friend is opposed to this Measure, because it is not under the aegis of a municipality, but I think, generally speaking, it is a great deal better to find the money for these undertakings from private enterprise, when it is possible, so that there shall not be any chance of expense being placed upon the ratepayers or the taxpayers of this country. It is a matter of £4,500,000 that has got to be found. The Government and the various municipalities have been experiencing considerable difficulty in raising the necessary money that is required for their various enterprises. I see, when I go around, the London County Council Six Per Cent. Housing Bonds advertised and the invitation to "Come and buy in order to enable houses to be built." We are not going out into the highways and byways working on the protection of the various rates, and asking people to come into this or that enterprise backed up by the rates. If this Bill passes I hope the money will be found entirely by those who are satisfied that it will be possible to carry out this project in a reasonable and economical manner, so that there may be electricity produced for the requirements of the people of this country, so enabling them to increase their works. What about these housing schemes? Are they not to have the means of being supplied with cheap current? The County of London Company have had to go outside in order that they might be able to supply consumers who were asking for electricity, not only for domestic and housing purposes, but also for power to carry on various undertakings for manufacturing in and around London. An important point has been made by one hon. Member, who says, "Oh, but you are not going to limit your operations in London." I quite agree. These companies at the present time are supplying the needs of people living in an area of 180 square miles outside the County of London.

What is the reason for the opposition to this Bill? I have been trying for a long time to think. Up to the present there has been no satisfactory reason given to the House showing what the general opposition is, unless it is that the municipalities want to keep their hands on the whole of these undertakings. I think it is a bad thing, and I say it here and now, and I have always been opposed to it, that these undertakings should be backed up by taxes and the rates of the local bodies. If some scheme is not evolved such as has been recommended to the House in this Bill, I can see that there will only be one way in which the requirements of consumers can possibly be supplied, and that is by large municipal enterprises. Then, I suppose, we shall have to wait till some new scheme is brought forward. My hon. Friend seemed to overlook the fact that this company is not desirous for one moment of constructing this generating station unless it has the support of the Electricity Commissioners. They say this is a project which they believe is for the benefit of the consumers. There was an enormous amount of electricity required. They were not in a position to supply it. Therefore they had to come to Parliament in 1913, before the War, or before the Electricity Commission was set up, and it was then agreed that stations should be put up. Owing to the War, naturally, they had to wait. The would-be consumers also had to wait. My hon. Friend referred to the question of the railways requiring current. At Question Time the Minister of Transport referred to the current required by the various railway companies, and it was suggested that steps had not been taken to provide these companies with the power so that they could go ahead with their electrification. Now the project is brought forward, whether the railway companies will or will not take advantage of it, surely it is necessary that we should give all these potent factors the opportunity of taking the supply that may be placed at their disposal.

It is, of course, urged that we want to go in for such a huge scheme, covering 600,000 kilowatts. Up to the present it is not for 600,000 kilowatts. The station to be erected with the necessary cable is for 100,000 kilowatts. What, eventually, the requirements may be it is not possible for them, or anyone, to say. But is the company to be blamed, or are you to take people to task, because as reasonable business -people we are looking ahead to the future? The hon. Member for Mosley has gone very carefully, very concisely, and very lucidly into the various points. I do not want to reiterate them. But I think the statement he read of the Ministry of Transport would be sufficient to convince hon. Members—I think the majority of this House—that this is no haphazard scheme brought forward without due consideration, because the Government Department have decided that there was no objection to this scheme going forward. I take it that the Minis- ter of Transport would not have given an answer in that way if he had not been in consultation with the Electricity Commissioners!

A lot has been made of the question of eventual purchase. My hon. Friend knows full well that in most of these concerns purchased by the Government it is not private enterprise that has obtained the best end of the stick. Take the National Telephones. That is an object lesson that the House need not be afraid that there is going to be an enormous sum paid to private enterprise for the purchase of any concern taken over by the Government. I have always found the boot has been on the other leg, and the private enterprise has suffered very much indeed. I have no doubt that if the promoters of this Bill were satisfied that the Government or the Electricity Commissioners would say that in 1925, "We are going to take over your concern," if that were known to be a fact you would have the greatest possible difficulty in getting money from the financiers of this country to construct this generating station.

It is to be hoped that in 1925 there will be no Electricity Commissioners.

That is no concern of mine at the present time; but I will tell the right hon. Baronet that in the Electricity Bill that was one thing, and the only point in the Bill, which gave me any crumb of satisfaction. If some authority such as the Electricity Commissioners were set up, and we stopped there, it would be for the benefit of the people in this country, provided these Electricity Commissioners continued to be the same class of commissioners as those appointed at the present time. But I do not see that any reasonable opposition has been brought forward; that we can say that this generating station is not required. It is proved up to the hilt that it is required. This Company, originally established with £100,000 of capital, has now a capitalisation, altogether, of £3,000,000. That does not look as if electricity requirements had been in the hands of people not thoroughly competent to provide what is required. I have seen one or two Motions opposing this Bill, but I do not think I would be in order in dealing with them. I would commend, however, to my hon. and gallant Friend the Member for Finchley (Colonel Newman) consideration of the words of the Amendment which are in his name, and I suggest that all questions in that Amendment have been fully met because the Electricity Commissioners have gone fully into this matter and it is not a new scheme brought forward now. If it had not been for the War this generating station would have been up and at work, and I look forward to work being started upon it in the near future as I am fully confident that the House will give a Second Reading to this Bill.

I would not have intervened if I had not received a letter from the council for part of the borough I represent asking me to oppose this Bill very strongly. After receiving their their letter I looked into the matter, and I came to the conclusion that it would be a most churlish thing to prevent this Bill going to a Committee. It seems to me every safeguard is given in this Bill. You have the Electricity Commissioners, whom you cannot get behind, and it does not seem to me that you can debate whether it is necessary on the Floor of the House. It should have a Second Reading and be thoroughly considered upstairs. The letter I received was a very long letter, and much of it was quite special pleading. It did not give me any real reason why I should oppose the Bill, or any reason why I could say this Bill was damaging to the borough I represent. I may say I should probably have known little about the Bill if I had not been asked to oppose it on a Second Reading, and so have gone into the matter. I intend to vote for it, as I strongly believe we do want cheap electricity, and if somebody does not get behind these people and push it along we shall not get it. The municipalities, which have got electricity stations, are opposing it, and the London County Council. The London Council have a name, of course, for opposing everything they have not a hand in themselves themselves. That is a difficulty with the London County Council, though I say it as an ex-member. I do deprecate, in every way possible, the idea that because you have not got any thing in your own hands, you should not let anybody do it. We can surely trust this matter in the hands of the Committee upstairs.

If this were 1913 I would not oppose the Second Reading of this Bill, but it is 1921. Since 1913 we have made our bed, and having made our bed we have got to lie upon it. In 1918 or 1919, when money was of no account, we passed the Electricity Act. I did not like that Act then, and I do not like it now, but having made that Act we have to stand by it until such time as we get it off the Statute Book. I quite admit that, so far as the Ministry of Transport goes, this 1919 Act, and the amending Bill of 1920, gives it its only hold on life, and the Ministry may be inclined to support this Bill. I am not supporting this Bill because we have this Act on the Statute Book and have set up the Electricity Commissioners and districts, and have Clauses in that Act for compensating companies. Having put this extra charge and bureaucracy on the State are we to say that we forgot about the Act and allowed the starting of these big works down at Barking? The hon. Member who opened the opposition said that probably in 1925 these great works would be bought up by the London County Council, who are the authority for the County of London, and that they would cost the ratepayers something like £4,500,000. As a London ratepayer I object. The Act of 1919, I thought, gave me a certain protection, the protection of the Commissioners. It is all very well to say that when this company goes the Electricity Commissioners go with it, but it may be that I, as a ratepayer, may have to find my share of this £4,500,000 to buy up this great scheme.

I understand the hon. and gallant Gentleman is afraid he may be called upon to provide £4,500,000 to buy up the works this company is eventually creating. Surely that cannot be, because if an Act is passed authorising the London County Council to provide the money he will have an opportunity to state in this House that he does not support the Act.

I have read the Electricity Act and the Amending Bill, but I am glad to know I have that right. May I say this that, although I am opposing this Bill now, when the scheme of the London County Council comes along, if it does come along under the 1919 Act, I shall reserve to myself, on behalf of the urban districts I represent in this House, the right to oppose it. We have heard a great deal about Greater London, and the hon. Member who opened the discussion is much too fond of talking about Greater London, but if he thinks, and the London County Council thinks, they are going to grab the district supply of the district of Finchley they are very much mistaken. We happen to have an undertaking there which pays. I wish to preserve my right to oppose the London County Council when they come forward with another Bill on this question, and I ask the House not to give a Second Reading to this Bill.

Perhaps it will be convenient if I state the view of the Government now. The House is invited to give a Second Reading to a Bill which has already passed through all its stages in another place. I want to remind the House of some very appropriate words used by the present Speaker before he was appointed to that office as to what he considered to be the duty of the House on the Second Reading of a Private Bill. In the Debate which took place in April of this year these were the words which Mr. Speaker then used: exercise those statutory powers which I understand have not lapsed, they do not need the further consent of Parliament. They have in this Bill included certain further lands, which they have in the meantime acquired, and desire to bring within the scope of their earlier Parliamentary powers, and, further, they want similar powers to break up roads, and matters of that description. It is because they require some Parliamentary variation of their Powers Act of 1913 that they are promoting this Bill. That is one reason.

The second reason is that as we have just heard from the hon. and gallant Gentleman who last addressed the House the financial conditions are not the same now as they were in 1913. If hon. Members would look at the private Bill which was under discussion at that time they would find that a substantial part of this private Bill relates to financial powers which this Bill provides in order to deal with the powers vested in the company under the Act of 1913. I think I have now summarised the objects which the company have in coming to the House at all. What are the grounds of the objections which were stated by my hon. Friend the Member for Central Southwark (Mr. Gilbert) who moved the rejection of this Bill? He called attention with perfect propriety to the fact that there is proceeding at the present time an inquiry by the Commissioners into the question of the setting up of a Joint Electricity Authority to survey the electrical needs of this great area of London and the surrounding districts, and if I follow him correctly he had doubts and anxiety lest this Bill would in some way prejudice either the proceedings of that inquiry or the scheme which must result under the 1913 Act as the consequence of that inquiry and the operation of the joint authority when it has been established.

My hon. Friend concluded by suggesting that probably his difficulties might be met by an instruction to the Committee to have regard to certain cogent matters. I would like to point out that under the Standing Orders an instruction of that kind must appear upon the Order Paper, and speaking with deference, and subject to correction by those whose Parliamentary experience outweighs my own, I think it would not be relevant now to discuss the terms of any proposed instruc- tion to a Committee upstairs. I gather I have the assent of the Chair to the proposition that it would not be in order for us to discuss to-night the terms of the proposed instructions to a Committee, although I think there is nothing to hinder my hon. Friend from putting down on the Order Paper the terms of an Instruction, if he can get Parliamentary time to discuss it, which is a matter of considerable doubt.

Is it quite impossible for the Ministry of Transport, representing the Electricity Commissioners, to give such Instruction to the Committee, or make such a point in their Report?

I will explain that point before I sit down. It is extremely unlikely that this House will have an opportunity of giving such an Instruction, and therefore I must look at this Bill as it is without considering that such an Instruction will be forthcoming. Under this Bill, before these works could be put into operation, an application will have to be made to the Electricity Commissioners for their consent. The functions and rights and duties of the Commissioners in that respect are those which are set out in Section 11 of the Electricity Supply Act, 1919, and before any authority or undertaking has the right to proceed to erect stations they must apply for and obtain the consent of the Commissioners. The promoters of the Bill, on making application to the Electricity Commissioners, can get their consent to proceeding with the works for which they have statutory powers, but it is common knowledge that the practice of the Commissioners is to defer any decision on such applications pending the inquiry which they are holding into the general question of setting up a Joint Electricity Authority for the London area. I should like to make perfectly clear what I conceive to be the position of the Electricity Commission. They are and should be always treated in matters of this description, which are by statute entrusted to them as a semi-judicial body who ought not to take their instructions from the Minister of Transport or any other Government Department, but who should exercise the functions which Parliament has entrusted to them independently of outside interference at all. I venture to suggest that on an occasion on which, for the first time, the relationship of the Electricity Commissioners to the Minister or anyone else has come up for discussion in this House, we cannot make it too clear that they ought to be kept perfectly impartial and absolutely free from political or Departmental control.

Having said that much, I think my hon. Friend who moved the rejection of the Bill will see that I am not able to answer his question in the way he would have desired me to do, namely, by saying that the Minister of Transport will himself issue some instructions. That, I think, is impossible and would be improper, but I have the authority of the Commissioners to say that their mind on this matter is absolutely open, and that they have not determined to give or with hold their consent to any application which will be made to them if and when this Bill becomes an Act of Parliament. If Parliament in its wisdom gives these further powers to the promoters of this private Bill, the Commissioners will then take into their consideration all relevant matters to which their attention is called, including, of course, the extremely relevant matter than one electricity authority is being formed under the scheme of 1919 for this area, and it will be their duty to consider whether the functions of that authority will be interfered with prejudicially or whether it will be of some advantage to that authority that this generating station should have been built. I speak with some little diffidence in putting the two positions before the House, lest it should be construed that in some indirect way I am seeking to influence the discretion of the Commission. But I should like to point out to the hon. and gallant Member for Finchley that there is a consensus of opinion in London that electricity must be developed in this great metropolis, that it must be developed upon lines which seem to indicate the most economical and the most scientific methods, and methods calculated to produce at the cheapest cost the most prolific supply of electricity.

That is what the Electricity Commission are charged to do, and if this joint electricity authority is established, as it must be as the law stands, and if it is faced with the problem of finding a large capital sum of money in order to undertake works of this description it might discover that it was badly handicapped in its activities, and it is conceivable it might welcome the fact that there was private enterprise prepared to take risks connected with enterprises of this description, prepared to find the capital sums of money required on the financial terms indicated in the Bill, and it might very well assist the operations of the authority if such a work was being proceeded with quickly, and not only being proceeded with, but proceeded with at the charge, not of the authorities concerned, but by private enterprise. That is one of the matters which the Electricity Commissioners would naturally take into their consideration. The public have further protection under Clause 13 of this Bill, which provides that if within seven years from the 30th July, 1918, a joint electricity authority shall have been constituted for this district, and shall require the company to sell its supply to this authority, it shall have the right to purchase on terms to be fixed by the Electricity Commissioners. There are quite a number of points in this Bill which seem to me to call for some amendment, and some of them have been indicated by hon. Gentlemen who have spoken in criticism of the Measure, but they all appear to me to be Committee rather than Second Reading points, and I venture therefore to suggest to the House that it would do well to give this Bill a Second Reading.

There are only two points I wish to mention. The first is that this company got powers some years ago to embark on certain undertakings which have not, as a matter of fact, been gone on with, and now, owing to the effluxion of time, they are asking for further powers; I think it is only right that they should be given an opportunity to explain to the Committee upstairs exactly what they propose to do and how they propose to do it. Then we have to consider the rights of the public, and see that they are fully protected. If the company is going to do anything which is calculated to impinge on the rights of the public, then they will have to face not only the Electricity Commission but the Ministry of Transport and all their powers. I think that the rights of the public and of the County Council are perfectly well preserved by the powers bestowed upon them by the Act and those which they will have, through these Departments, of finding fault with the proceedings when the Committee stage of the Bill is reached. In another place, as has been pointed out, all these questions have been gone into, and primâ facie there is a case in favour of the Bill. I doubt very much whether this House is entitled, on Second Reading, to turn down what has been approved in another place. I think that, if this House is going to turn it down, it ought not to be until after a close examination has been made of the facts and circumstances involved in the Bill. The stage for that is the Committee stage, and not the Second Reading.

Then we have found, and particularly in the London area, that a certain amount of antagonism is displayed between the borough councils and the County Council. I am told that a certain borough has renounced its obligation to the County Council in the matter of rates. I may be wrongly informed as to that, but I believe it to be correct. Where we can get over these difficulties, and can show that there is an amount of private enterprise, such as has been mentioned by the Parliamentary Secretary, then we should at all costs foster that private enterprise, particularly when it has the concurrence of the Electricity Commissioners. Until such time as this House agrees that private enterprise is to be wiped away, and that the whole of these public utility services are to be socialised or municipalised, there is a very serious point of principle involved in this Bill. It may be a private Bill; it may be a localised Bill; but in this Bill is involved the whole question whether or not private enterprise is to have full sway. If private enterprise is to have that sway, and if it can show that it is able to meet the public necessities, then it is our duty as a House to foster that enterprise, and not to condemn it. I think, therefore, that the least thing this House can do is to admit the principle by giving the Bill a Second Reading, allowing these contentious questions to be dealt with by the Committee.

I should like to direct attention to one point, apart from the intrinsic merits or demerits of this Bill. It has been suggested that we are under some obligation to give this Bill a Second Reading because it has been given a Second Reading in another place. I am not quite clear what the position of the House of Commons is in its relation to another place in such a matter, but I have always been given to understand that this House decided Measures upon the merits of those Measures and upon their public utility and necessity, and that we are and ought to be undeterred and uninfluenced by anything done in another place. If that be not so, we are simply the auxiliary of the other place. There is one phase of the matter which has not been given very great consideration by the House. I do not know to what sort of Committee the Bill will go—whether it will go to a Joint Committee, as I suppose—

I happen to have the misfortune to be serving on a Private Bill Committee at which Counsel have been heard. The proceedings have been going on now for six weeks, and I cannot see the end of them.

The whole Buzfuz fraternity are there. I do not know whether they are making things last intentionally, but anyhow they are lasting. My experience tells me that no Committees of this House need the assistance, advice, and guidance of the bewigged gentlemen. I am disposed to think that legislators ought to be capable of legislation without the assistance of Counsel, and that such procedure is an exceedingly costly and vexatious way of doing business. It does seem to me that the making of public commitments in connection with electricity business and undertakings and expansion is something with which we ought to proceed very slowly. As an engineer, I think that our methods of what is called generating, or, rather, collecting electricity are exceedingly primitive. As we are in an age now particularly and peculiarly of inventive enterprise, I think it is admissible to say that vast strides will be made between now and the time when the local authorities here will take over this particular undertaking, and I am disposed to think that it will not be much more valuable than scrap iron when that time comes. But we shall have to pay for it, not according to what it is worth, but according to what it has cost. It seems to me, therefore, that if this proposal be put back—and if it goes to a Division I shall certainly vote against it—it should be on the general principle that we ought not to put difficulties in front of the County Council of London, in view of these and. many other circumstances which, although I speak with much diffidence, I am afraid are lost sight of.

The population of London has reached a figure which people think is a sign of civic health, although I hold exactly the opposite opinion. I think that London and Greater London, on the area of which is now concentrated at least one-sixth, and probably one-fifth, of the entire population of the United Kingdom, has ever-grown its necessities, and that the growth of London is going to be, in the very near future, one of the most serious problems which Parliament, municipal authorities, and everyone else in public life will have to consider. I think the House should pause before giving its assent to undertakings of a more or less speculative character, and that, the slower we go, the better we shall go, until developments justify us in increasing the speed.

One listened with profound disappointment to the statement of the Parliamentary Secretary when one recalled that in 1918, when the Prime Minister went to the country, one of the inducements that he placed before the electors, if they would only return him and his colleagues, was that they would revolutionise the system of electricity. In no part of the country was that more necessary than in and around London. We all know the difficulties there in regard to the electrical system. Every part of London has a different system; you require different lamps, and if there is a breakdown in one part it is difficult to get supplies from another part. In fact, it is not too much to say that the electrical system of London is more or less in a state of chaos. We were promised nearly three years ago that the time had come when that should be remedied. We have listened to speeches from the Minister of Transport, we have had meetings upstairs; I supported the Bill which would have put all this right; and yet, after nearly three years, we are, apparently, as far from reaching this improvement as we were at the time when the promises were made in the year 1918. After listening, as I did, to the speech from the Parliamentary Secretary, I was in considerable doubt as to what part the Minister would take, assuming this Bill went to a Committee. Is he to attend this Committee and sit silent throughout the proceedings? [HON. MEMBERS: "No!"] The problem is really a serious one, so serious, indeed, that we have had to sit in this House late at night, and we have had to attend Committees upstairs in order to deal with it. It was serious two years ago. It is far more serious now. The House will bear the fact in mind, that if it agrees to send this to a Committee and hon. Members do not express their views on this matter, if the Committee are themselves persuaded that there is little or no prospects of the Ministry of Transport or the Commissioners carrying out the promises that were made at the last Election, they may feel disposed in saying, in the absence of any other way being put up, you had better proceed.

If that happens it will be open for other electricity undertakings in London to come and apply for powers, and' if that is done, where is this great scheme coming from that many electors voted for at the last election. If you start now authorising vast expenditure it will be practically impossible to get co-ordinating schemes. Time after time during the last two years the Minister of Transport or his Commissioners have asked authorities to extend their developments, but to allow one concern to come in and have privileges is, in my judgment, very wrong and very improper. I do not know what action the Mover of the Rejection proposes to take, but I would suggest that if he could draft an Instruction to the Committee, which has been done time and again in this House, as to what they could take into consideration when they are considering these proposals—if he is willing to do something of that kind, then I should be glad to support him, but if otherwise he does not see his way to do that, I shall go into the Division Lobby with him, not with the object of rejecting his proposal, but with the object of postponing until such time as the Minister of Transport has come to some conclusion. Perhaps at the end of the fourth year the Ministry may have made up its mind as to what is necessary for the electricity in London.

I intervene for a moment after listening to the observations of the hon. member for White-chapel (Mr. Kiley). I really think he should, if he will allow me to say so with all respect, make himself at least a little acquainted with the subject before he occupies the time of the House in discussion upon such a matter as this. The hon. Gentleman seems to be under a complete misapprehension. He seems to think if this Bill were passed the promoters may have conferred upon them in Committee powers to build power stations and carry out other works which have been within the jurisdiction of the Electricity Commissioners or the Ministry of Transport. As I understand this Bill, it is an application by this company to acquire additional land to build a power station at Barking, and, in addition, to confer upon them certain rights in regard to finance. Briefly, that is the Bill. But—and it is a very big "but"—there is one provision of the 1919 Act which is incorporated in this Bill, and, whether incorporated in this Bill or not, under the 1919 Act they cannot build a generating station without the consent of the Electricity Commissioners.

If they get the Parliamentary Committee's approval, it would go a long way towards that.

That is not possible. The Parliamentary Committee at the present time cannot override the 1919 Act in a Private Bill application. No power station can be erected, either authorised or to be authorised,. without the consent of the Electricity Commissioners. When they have obtained their powers they have to submit them to the Electricity Commissioners, and they have to make out a good case to the Commissioners. After listening to the speech of the Parliamentary Secretary, there is no alternative but to give a Second Beading to this Bill, so that the details may be examined in Committee upstairs. If, when the Bill comes downstairs for the Third Reading there is any matter that has not been properly dealt with, or any information withheld, or any misdirection, then it will fall to us to reject the Bill.

stated that at the last election certain pledges were given by the Prime Minister to the effect that a large electricity scheme which would result to the benefit of the inhabitants of London and other great cities would be introduced, and the hon. Member apparently places his opposition to this scheme upon those statements at the last General Election. The hon. Member will correct me if I am wrong, but I believe the hon. Member only got into this House at the last General Election.

The hon. Member was here before. That makes his remarks more difficult to understand, because if the Hon. Member was in before he must have had some experience of what results follow from election speeches and election statements, and I should have thought, if he had only been a Member for the last two and a half years, he would have found out that election speeches were only made in order to be broken. The hon Member's desire that the matter should be postponed on account of some election pledges does not strike me as using his business capabilities, which I have always, if he will allow me to say so, credited the hon. Member with. I am sorry that the hon. and gallant Gentleman the Member for Finchley (Colonel Newman), having made his speech, has left the House. He made some statement that he was afraid that if this Bill became law his constituents would be called upon to pay, I presume he meant a portion, would be called upon to pay a portion of a sum, which he placed at £4,500,000, in order to buy up this particular company, and I interrupted him to say that I was under the impression that no local authority could enter into an agreement to purchase some other property without the consent of this House. The hon. Member for Central Southwark (Mr. Gilbert) corrected me and informed me that in making that statement I was in error. There have in the last two and a half years been so many Bills passed— I was going to say all bad, but I will say 99 per cent. of them bad—

No good, or bad. It is almost the same thing—that I really have lost all count of them, and therefore I am afraid I fell into an error because the hon. Member for Central Southwark informs me that under some foolish Act passed within the last two years—

That is still worse— in 1931 we are going to purchase all these undertakings without coming to Parliament for sanction. But before 1931 one or two things will have happened. Either this country will have recovered its common sense—

There will be one Member the fewer with a little commonsense. This country will either by that time have recovered its common-sense and will have rejected all these Socialistic and absurd schemes and passed an amending Act wiping out all that nonsense or it will have become bankrupt, and if it is bankrupt it cannot carry out these schemes. Therefore, under no circumstances do I regard the Act of 1908 as a matter to be seriously contemplated. The hon. Member opposite, whose opinion I value very much, said this Bill had received a Second Reading in another place. It has done much more than that. It has passed through all its stages in another place and has been examined in Committee by competent people. The hon. Member also made a very startling statement which I am sure, on reflection, he would like to withdraw. He said he was under the impression that in this House every question was considered on its merits. He knows perfectly well it is not. This question will not be decided by those who have heard the Debate, but by those, if there are any, who will come in from outside, and will decide the point without in the least knowing what it is they are voting about. I knew nothing about the merits of this Bill until this evening, and then I found two statements. One was a statement by the London County Council against the Second Reading. I always like to listen to the views put forward by an eminent body like the London County Council, and I read the document carefully, and I completely made up my mind as to which way I should speak and vote. That is not the way that the writer of this document would like, because after having read the document I am quite sure that the proper course is to vote for the Second Reading of the Bill. The document makes statements about the number of kilowatts which will or will not be obtained. That is a technical matter which, as I am not an engineer, I cannot discuss. When I came to paragraph 4 I saw what is at the bottom of this opposition. It says: document was the London County Council, in order to get their finger into the pie, had been wasting time in discussing with various officials, who have had their salaries raised, these schemes for electricity, and doing nothing. Therefore, paragraph 4 in the document influenced me in favour of the Bill. The document proceeds:

I am sorry that the hon. Member for North Aberdeen (Mr. Rose) does not think much of Private Bill Committees. That was not the opinion of very great authorities. Private Bill Committees of the House of Commons were always held in great esteem. The hon. Gentleman says that he does not like counsel appearing before them, but they were set up with the express purpose of allowing counsel to appear before them, in order that those members of the public who are not possessed of the eloquence which the hon. Member possesses might have counsel learned in the law to put their case before what is, after all, a judicial tribunal. Once a man is a Member of a Committee he cannot get off it, and although he may not care for it, he has to listen to all the speeches made by counsel. The result is that a scheme is thoroughly investigated, and if the Committee is a good one—and I have no reason to think that the Committee to which this Bill will be sent will not be a good one—then the pros and cons are thoroughly thrashed out and a proper decision is generally arrived at. Therefore, I think we ought to send this Bill upstairs, in order that a Private Bill Committee may consider it. So far as I am concerned, I shall be very loath to put my money into it, but that has got nothing to do with me. If the promoters think they can get the money to carry out the scheme, well and good.

It has this great advantage, that if the scheme is a failure the only people who lose money are the shareholders, whereas if all these things are left to the local authorities the people who lose their money are the ratepayers, who practically have no voice in the matter. Shareholders always can call their directors to account. They can, at the yearly meeting, request the directors to take action one way or another, but the ratepayers are as sheep shorn by the local authorities. They cannot say a word, and if they could no one would pay the slightest attention. Further, the result is that should there be something which is an improvement upon the existing method of generating electricity nothing is done. It was just the same in the case where motor omnibuses came as an improvement upon tramways. If the matter is in the hands of the local authorities, there is no progression; the local authorities have committed themselves to trams and no change can be made, otherwise the ratepayers would think them very stupid and that must be avoided at all costs.

I had considerable hesitation whether I should join in this Debate or not, and I have postponed rising until very late. I certainly think that the time has come when someone who knows something about it should at any rate put the House right in respect of a great deal that has been said. The Debate shows the mischief of Private Bill legislation requiring to come before this House on Second Reading and of the House being at the mercy of ex parte printed statements which have been sent round. Really, if Sir Owen Seaman could have listened to this Debate we should have had a very interesting chapter in the next edition of "Punch." It reminds me of "Alice in the Looking-Glass." Members profess to want one thing, and they will vote against the very method which will bring it about. Take the speech of the hon. Member for Whitechapel (Mr. Kiley). He complained that in the 1918 Election promises were made in regard to cheap electricity, and he said that this Bill was one of the things which would vitiate that promise or put it off still further. I ask him to read the Minutes of Evidence given before the Commissioners so far. He will see that this is submitted by those who are promoting two of the three schemes to which the last speaker referred. They are completing schemes. The local authorities have recognised that the conditions of the financial market are such that they cannot go to the area for a supply of capital for some years to come, and that they must content themselves with a system of linking up existing stations. But this company proposes by this Bill, at their own expense, to erect a power station, and to meet the immediate requirements of a neighbourhood which is at present almost destitute of facilities, though a large population is already there, and a larger is expected. I do not care two straws which way this matter is handled, except for the principles of the honour of this House and of common-sense. If you want this supply, let the Bill go through. First of all you must have the assent of the Commissioners. Someone said that the Commissioners were bound to give assent if the House gave a Second Reading to the Bill. Nothing of the sort. The Commissioners are a body of independent gentlemen of high professional character who will do nothing of the sort. They will exercise judicial discretion in the matter. It is not as though in this Bill you were seeking to cut down the provisions of the Act of 1918. The whole thing is still under the control of the Commissioners, but this company will obtain statutory authority to purchase and enter upon lands and do other things which but for the War they would have done long ago. Is there any common-sense in objecting to the erection of a new station for giving an immediate supply, where otherwise you will not be able to have that supply for six or seven or perhaps ten years? After all is said and done, if ever a condition of things arose in which the capital was available to buy out this station, it would be bought at its value on the date of purchase, and not at its original cost.

It is common-sense, and if only we were guided more by common-sense, we would save a great deal of time in this House. I was sorry to hear the hon. Member for North Aberdeen (Mr. Rose) make disparaging references to the legal profession, but I am perfectly certain we could not get through our work as well as we do were it not for the assistance given by an exceptionally able Parliamentary Bar. In regard to Private Bill legislation, the best course is to give a Measure a Second Reading, and if we find out there are matters which have not been properly threshed out in Committee, there is an opportunity for dealing with them on the Third Reading. I have no interest in this matter at all further than to preserve the effectiveness of the House, but if you want electricity distributed in these districts at once, let the Bill go through. If you are willing to postpone it for half-a-dozen years, then wait, wait, wait, as has been done in the past.

I venture to suggest that the hon. Member who has just spoken is viewing this problem, not from the standpoint of the local authorities and the ratepayers whom they represent, but is taking a view too often taken in this House. We have become used to legislation—especially in the last few weeks— which diverts burdens on to the ratepayers of the boroughs at the bidding of the so-called Anti-waste party. Here we have a proposal which gives to local authorities and certain private companies an opportunity of more efficiently supplying the public with electricity, and the view of the hon. Member for Ealing (Sir H. Nield) comes to this: Give the Bill a Second Reading and, incidentally, put upon the ratepayers in and around London the responsibility and cost of fighting this Bill through Committee. We have arrived at the parting of the ways. If a Second Reading is given to the Bill, it means that in instructing counsel, and fighting for their interests in Committee, a far greater expense will be incurred by the ratepayers.

Of course they should not oppose it. Belgium should not have opposed Germany, either. The day has disappeared, however, when bandits were allowed to come into the streets of London or of any other centre and say, "We have come for your goods. Accept the bullet, because it is in your interests to do so." We have reached a different stage and the outlook of the people has changed. There is a larger sense of the identity of interest even as between the manufacturer and the local authorities. In this case an opportunity is being seized—after the proposals and wishes of the local authorities have been opposed and side-tracked in the earlier stages —to sweep in, and secure these powers. I have not been very long in this House, but I know that one of the most material points brought forward in support of a certain thing is that it has already passed Second Reading, and that, therefore, it has the consent of the House. It is because the matter is under consideration, and because we are only beginning to discover the potentialities of electricity, and because that kind of power should be in the hands of the local authorities and not in the hands of any group of private capitalists, however foreign may be their names, that we oppose this Bill. It would amaze some people if they knew the curious names behind this Bill, who stand to profit by it. I do not propose to read them out at this late hour.

I will give one name— M-e-r-z. I will not trouble to pronounce it. I left school to go to work when some of those who are fit to govern were leaving home to go to school.

Is the hon. Member aware that the name he read out is that of one of the most respected engineers in electrical science, and largely relied upon by the County Council?

I say that the hon. Member would have been the very last to defend it during the days of the War, when a man or a woman was howled down for no other reason than the way in which their names were spelled. There are points about this proposal that want very careful watching, and we oppose it precisely because we are watching them and because there are Members' names attached to this Amendment which deserve the consideration of this House, Members of nearly every party in the House, who are also connected with local authorities which have sunk an enormous amount of capital in giving a public service, and now stand to lose the whole of it. Take Erith, Woolwich, and so on, local authorities which have spent considerable sums in giving something the public needed, more efficient manufacture, more efficient amenities of public and social life generally—these corporations have laboured hard in the interests of the people. If this Bill is given a Second Reading, it may strike a very hard financial blow at the local authorities, and it is precisely because of that and because, at the time when the Commission of Investigation is sitting, we should not hurry, but should hasten slowly, that I hope this House will decline to give a Second Reading to this Bill, brought forward, as it is, under such doubtful and dubious auspices.

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

The House divided: Ayes, 93; Noes, 53.

Division No. 232.]

AYES.

[10.45 p.m.

Ashley, Colonel Wilfrid W.

Betterton, Henry B.

Chadwlck, Sir Robert Burton

Atkey, A. R.

Borwick, Major G. O.

Coats, Sir Stuart

Balfour, George (Hampstead)

Bowyer, Captain G. W. E.

Conway, Sir W. Martin

Banbury, Rt. Hon. Sir Frederick G.

Brittain, Sir Harry

Davidson, Major-General Sir J. H.

Barnston, Major Harry

Broad, Thomas Tucker

Doyle, N. Grattan

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

Buckley, Lieut.-Colonel A.

Elliot, Capt. Walter E. (Lanark)

Bellairs, Commander Carlyon W.

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

Erskine, James Malcolm Monteith

Farquharson, Major A. C.

M'Curdy, Rt. Hon. Charles A.

Samuel, Samuel (W'dsworth, Putney)

Gee, Captain Robert

McLaren, Robert (Lanark, Northern)

Sanders, Colonel Sir Robert Arthur

Gibbs, Colonel George Abraham

Mitchell, Sir William Lane

Sassoon, Sir Philip Albert Gustave D.

Gilmour, Lieut.-Colonel Sir John

Moore, Major-General Sir Newton J.

Shaw, Capt. William T. (Forfar)

Goff, Sir R. Park

Morden, Col. W. Grant

Smith, Sir Allan M. (Croydon, South)

Green, Joseph F. (Leicester, W.)

Murray, John (Leeds, West)

Smith, Sir Harold (Warrington)

Greig, Colonel Sir James William

Murray, William (Dumfries)

Stanier, Captain Sir Beville

Gretton, Colonel John

Nail, Major Joseph

Sugden, W. H.

Gritten, W. G. Howard

Neal, Arthur

Terrell, George (Wilts, Chippenham)

Hacking Captain Douglas H.

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

Townshend, Sir Charles Vere Ferrers

Hamilton, Major C. G. C.

Nicholson, Reginald (Doncaster)

Tryon, Major George Clement

Hancock John George

Nield, Sir Herbert

Turton, Edmund Russborough

Hopkins, John W. W.

O'Neill, Major Hon. Robert W. H.

Wallace, J.

Hopkinson, A. (Lancaster, Mossley)

Parker, James

Wheler, Col. Granville C. H.

Hurd, Percy A.

Parkinson, Albert L. (Blackpool)

Williams, Aneurin (Durham, Consett)

James, Lieut.-Colonel Hon. Cuthbert

Pease, Rt. Hon. Herbert Pike

Williams, C. (Tavistock)

Jephcott, A. R.

Pennefather, De Fonblanque

Wilson, Colonel Leslie O. (Reading)

Jones J. T. (Carmarthen, Llanelly)

Perkins, Walter Frank

Winfrey, Sir Richard

Kenyon, Barnet

Pownall, Lieut.-Colonel Assheton

Wood, Sir H. K. (Woolwich, West)

Kidd, James

Pretyman, Rt. Hon. Ernest G.

Worsfold, T. Cato

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

Rankin, Captain James Stuart

Young, E. H. (Norwich)

Lloyd, George Butler

Rees, Capt. J. Tudor- (Barnstaple)

Younger, Sir George

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

Renwick, Sir George

Lorden, John William

Roberts, Samuel (Hereford, Hereford)

TELLERS FOR THE AYES.—

Loseby, Captain C. E.

Samuel, A. M. (Surrey, Farnham)

Mr. Hannon and Sir Frederick Hall.

NOES.

Benn, Captain Wedgwood (Leith)

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

Richardson, R. (Houghton-le-Spring)

Bowerman, Rt. Hon. Charles W.

Hinds, John

Rose, Frank H.

Bramsdon, Sir Thomas

Hirst, G. H.

Royce, William Stapleton

Breese Major Charles E.

Hood, Joseph

Shaw, Thomas (Preston)

Cairns, John

Jones, Henry Haydn (Merioneth)

Short, Alfred (Wednesbury)

Cape, Thomas

Kenworthy, Lieut.-Commander J. M.

Sturrock, J. Leng

Clough, Sir Robert

Kiley, James Daniel

Thomson, T. (Middlesbrough, West)

Cobb, Sir Cyril

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

Tootill, Robert

Curzon Captain Viscount

Maclean, Nell (Glasgow, Govan)

Walsh, Stephen (Lancaster, Ince)

Dawes, James Arthur

Mills, John Edmund

White, Charles F. (Derby, Western)

Edwards, C. (Monmouth, Bedwellty)

Molson, Major John Elsdale

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

Edwards, Major J. (Aberavon)

Morris, Richard

Wilson, W. Tyson (Westhoughton)

Entwistle, Major C. F.

Murray, Dr. D. (Inverness & Ross)

Wise, Frederick

Evans, Ernest

Newbould, Alfred Ernest

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

Foreman, Sir Henry

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

Young, Robert (Lancaster, Newton)

Fremantle, Lieut.-Colonel Francis E.

Norris, Colonel Sir Henry G.

Galbraith, Samuel

Pearce, Sir William

TELLERS FOR THE NOES.—

Gillis, William

Purchase, H. G.

Mr. Gilbert and Mr. J. Jones.

Glanville, Harold James

Raffan, Peter Wilson

Bill read a Second time, and committed.

Salmon and Freshwater Fisheries Bill

Postponed Proceeding resumed on Amendment proposed on consideration of Bill, as amended ( in the Standing Committee ).

CLAUSE 1.—(Increase of maximum licence duties.)

(1) The maximum licence duties that may be imposed in relation to salmon or freshwater fish under the Salmon and Freshwater Fisheries Acts, 1861 to 1907, or any Provisional Order made thereunder, or under the Fisheries (Ireland) Acts, 1842 to 1909, shall be double the maximum licence duties which may be imposed at the passing of this Act.

(2) The expression "freshwater fish" means fish of any kind other than salmon which live permanently or periodically in fresh water.

Amendment proposed: In Sub-section (1) leave out the words " or freshwater fish."—[ Lieut.-Commander Kenworthy. ]

Question again proposed, "That the words proposed to be left out stand part of the Bill."

On the interruption of the Debate the Member for Central Hull (Lieut.-Commander Kenworthy) had just moved an Amendment. It will be in the memory of the House that he had mixed up the fisheries and other matters, and was getting mixed up regarding the fish in this Bill. We who are looking after this Bill cannot accept this Amendment, because we want to preserve the freshwater fish in the rivers. All those who look after the fish in these rivers are short of money. Money is wanted to pay for water-bailiffs, to prevent poaching, and to prevent the pollution of the rivers which kills fish. In order to get money to carry on all, this good work, and to preserve the fish for those who want to catch them, the boards of conservators must have money. In order to do this we must have a higher rate of fees for these licences. We leave the salmon as they are, in a special class, and their number is small. The fee for licences for freshwater fishing in the rivers is small. It is only about 1s. or 1s. 6d., and all this Bill does is to double that amount, and that would be the maximum which could be charged. We ask support for this Measure in order to preserve the fish of this country.

I confess that I have not been convinced by the speech of the hon. Member who has just sat down. As far as I can follow the argument, it is that fishing for salmon should be made more difficult than it is at present. The fact that there is a licence duty enables the poorer class—

This has nothing to do with the licences for salmon fishing. We are not discussing the Third Reading.

This proposal is to enable people to have more opportunities of catching fish. There has not been a single objection to it and it is to provide money for the expense of preserving the rivers. It is only a small licence fee, but sufficient to enable the rivers to be preserved.

I do not think there is any intention to preserve the fish by this proposal—

That would be in order on the Third Reading, but we are now dealing with an Amendment.

Amendment negatived.

Motion made, and Question proposed, "That the Bill be now read the Third time."

If a working man desired to go to a river bank to fish, the action of the conservators would prevent him. There are places which were once full of fish, but they have been poisoned from the works of the very people who are going to receive these fees from the poor, deluded man who thinks he is going to catch fish. There is something far deeper behind this Bill than appears on the surface, and my impression is that this proposal is to prevent these men getting down to the river bank in order to throw a line. If there was any real intention to promote the catching of fish, surely the difference between 1s. and 2s. would not prevent these people doing the right thing by the streams we have in this country. I know only too well the danger that exists through the poisoning of these streams. It is because I think there is no serious intention to make things better, but to allow matters to drift as they have been doing for years, that I am opposed to this Bill. The people who have charge of the rivers are often the worst offenders. There is a tremendous difficulty with the local authorities, and the real people who are doing the mischief are left free to keep on doing it. This proposal is not really one to look after the rivers at all. That is firmly planted in my mind, and I cannot get away from it. The whole idea is to prevent us getting down to the river bank.

It being Eleven of the clock, the Debate stood adjourned.

Debate to be resumed To-morrow.

Merchant Shipping Bill

As amended ( in the Standing Committee ) considered; read the Third time, and passed.

Telegraph [Money]

Committee to consider of authorising the issue out of the Consolidated Fund of such sums as are required for the further development of the telephonic system, and of authorising the Treasury to borrow money, by terminable annuities or Exchequer Bonds for the issue of such sums or the repayment thereof to the Consolidated Fund, and of providing for the payment of the terminable annuities or of the principal of and interest on any such Exchequer Bonds out of moneys provided by Parliament for Post Office Services, or, if those moneys are insufficient, out of the Consolidated Fund—( King's Recommendation signified ) — To-morrow. — [ Colonel Leslie Wilson. ]

The remaining Orders were read, and postponed.

7th Royal Scots

Motion made, and Question proposed, "That this House do now adjourn."— [ Colonel Leslie Wilson. ]

I very much regret to have to occupy the time of the House with a matter of local rather than of general interest, but I want to ask the hon. Gentleman who represents the War Office if he will reconsider what appears to be the decision of the War Office to disband the 7th Battalion, Royal Scots. The hon. and gallant Gentleman will be aware, not only of the distinguished history of the regiment, but also of that of this battalion, which is particularly associated with the burgh I have the honour to represent. It has been in existence for 60 years and served with distinction in every quarter of the world. It was sent to the East in the Great War, and before going there it was involved in that enormous disaster at Gretna in which 200 men lost their lives and many more were injured. The remainder of the battalion went out, and, as is known, performed very distinguished services in various parts of the East. The War Office appears to have decided— no doubt for reasons of economy—to disband this battalion, and I appeal to the hon. and gallant Gentleman, in the interests which he himself represents, to reconsider this decision before it is too late. The War Office must get recruits, and one of the most powerful incentives to recruiting is this consideration of local patriotism, which is one of the strongest reasons for the continuance of this battalion. I will not weary the House with a subject of which they know a great deal, namely, the amalgamation of this independent burgh with the great City of Edinburgh, but I would point out that the Port of Leith still remains the Port of Leith by Act of Parliament, and I am glad to think that the very fine, old-fashioned desire for public service in the Port of Leith still survives. During the War, out of a comparatively small population, no less than 14,000 men were under arms—that is in addition to the very large number of men engaged in the shipyards in the great naval centres near by. That shows that in this part of the world you can depend on a really fruitful source for your recruits. Over 2,000 of our Leith men were killed, and over 300 had the honour of receiving decorations for gallantry in the field. The hon. and gallant Gentleman may say he is compelled by reasons of economy to destroy or disband this battalion, and that the number of recruits secured is not sufficient to justify him in continuing it. I would remind him, however, it has been exceptionally difficult to secure recruits and for the last six months there has been a coal dispute as well as a dock dispute; the position has been extremely bad, and notwithstanding very vigorous efforts made not only by the officers of the battalion, but by the magistrates and baillies and members of the Council, they have been unable to get the requisite numbers.

If the hon. Baronet says that he must destroy the identity of this battalion, what will happen? He will not effect all the economy for which he hopes. What we are asking for is the continuation of the identity of the battalion. The hon. Baronet knows, as we all know, what a tremendous incrustation of tradition and pride gathers around the name of an old regiment. This is not merely a matter of sentiment, although I am a great believer of sentiment. It has a definite military and a definite money value. That is the reason why I ask the hon. Baronet not to act hastily in this matter. He will tell us the difficulties, I know, but would he, at least, say that before he decides anything finally he would see some small body—I will not say deputation, because that is too formidable, but one or two? There are several Members of this House who are interested in the matter. I myself have the honour to represent the burgh, and the hon. Member for Orkney and Shetlands (Sir M. Smith) is an ex-Provost. Would the hon. Baronet allow us to lay the case before him? That, at least, would help us on our way. I hope I have not said anything critical of the policy of the Government. I am simply making a plea for the continuation of a battalion which deserves well of the country.

I should like to thank my hon. and gallant Friend for the moderate way in which he has put this case, and also for giving me the opportunity of saying a word or two about the wider subject of which this is one of the parts. We found that we had altogether 21 battalions surplus to the 168 battalions required to form the 42 Infantry brigades of the 14 divisions that have been laid down for the Territorial Force. It was natural that, when the question for economy arose, these 21 battalions should be fastened upon immediately as suitable objects for the exercise of necessary economies. I am not going to chaff my hon. and gallant Friend about zeal for economy in the abstract, and reluctance to exercise it when it comes to a particular instance in which it affects one's own constituency. That has been done so often that it amounts practically to a truism. I have no doubt that other questions similar to this will be raised, and I want to say a word about the broad principle on which we are acting. I think it is reasonable that the total Territorial Force should be reduced by these 21 battalions which are surplus to the divisional organisation. We want to do that in the very kindest and most considerate manner possible. We do not want to disband wherever it can be avoided. What the War Office recommends in every case is not disbandment, but amalgamation. Where you get two or three battalions that are not up to strength and do not seem likely to come up to strength, then, in spite of all the difficulties to which amalgamations lead, and which no one knows more fully than I do myself, I think it is the right thing for the battalions to put their heads together and see if for the public good they cannot manage to amalgamate two battalions. The representatives of the County Territorial Associations in every case where this painful process has had to be gone through, have been consulted, and practically universally they have promised to help, but the one thing which they have stipulated is that there should be no favour about it. They are ready to help so long as they are treated in the same way as anyone else would be treated. Time after time representatives of the Territorial Associations have said: "We will help you all we can, but for God's sake keep clear of political influences." I go a little further, and I appeal to hon. Members not only to try to make things more difficult, but I appeal to them to give us a helping hand, in what must be a very invidious and a very irksome task. I can assure them that it cannot be more invidious or more irksome to anyone than it is to myself, because no one realises more than I do what a distinguished record one after another of these battalions have. No one recognises more than I do what we owe to the Territorial Force, and so long as I have anything to do with it I shall do my very best to do what I consider is the right thing for the Territorial Force as a whole.

I spoke about amalgamation, not disbandment, being the object which the War Office has in view. We want to make everything, as far as possible, easy in this amalgamation. We want to keep up the identity of various units. We want to preserve their old traditions. When two battalions are amalgamated in one we want to give every opportunity of preserving the old uniforms, the old badges, any distinctive marks to which all military units attach such great value, a value which you may call sentimental, but really which is of true military value. We want to do everything we possibly can. Although one battalion may be amalgamated with another, the company or companies that come from old battalions should still preserve the identity and the traditions of the battalion which cannot as a whole exist any longer.

I ask the House to pardon me in having dealt with the general subject, but, to come to this particular case, the Edinburgh and Midlothian associations at the present moment are providing four battalions, the 4th, 5th, 7th, and 9th battalions of the Royal Scots, and the 7th is the battalion in which my hon. and gallant Friend is particularly interested. The association has been consulted on two different occasions, the case has been put before them, and they have been asked, by a process of amalgamation, to transform these four battalions into two. It is not altogether an unreasonable request. The peace establishment of a battalion is 28 officers and 680 other ranks. Of course, it would be expanded a great deal further in time of war. In the 4th Battalion there are 271 other ranks; in the 5th, 164; in the 7th, 126; in the 9th, 378. If you add those numbers together, you get a total of 939. The peace establishment of a brigade is 2,720. So that, in spite of the efforts at recruiting, they have so far not only not come up to the establishment, but they have barely reached one-third, of it. I am giving the figures up to Lady Day, which are the last we have because the Defence Force was started immediately after that, and since then there has been no Territorial recruiting. Four battalions altogether had to be reduced in the division of which this brigade forms a part. After very careful inquiry, it was decided that Edinburgh and Midlothian must lose two battalions, and I think that the figures which I have given speak for themselves and show that after coming to that decision we were not inflicting an unnecessary hardship upon this brigade. With regard to a deputation, I cannot hold out any hope that this decision will be altered. It has been very fully considered and the local associations have been consulted, the decision has been come to quite advisedly, and I do not think that it would be right to ask people to come up from Scotland to the War Office to interview any of us on the chance that they might be able by their eloquence to prevail on us to alter our decision. Of course, if the hon. and gallant Gentleman and one or two of his Friends would like to come and see me or the Secretary of State, it is our business to see anyone who likes to come, and anything they have to say would meet with our most careful consideration, but I do not want to lead anyone to think there is a likelihood of this decision being altered, because it has been arrived at after very careful consideration after all the factors in the case have been taken into account, and I cannot hold out any hope that it will be altered, because I do not think it ought to be.

The House and the country ought to be indebted to the hon. and gallant Member for Leith—

Notice taken that 40 Members were not present; House counted; and 40 Members not being present—

The House was adjourned at Twenty-one Minutes after Eleven of the Clock till To-morrow.