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Commons Chamber

Volume 144: debated on Thursday 21 July 1921

House of Commons

Thursday, July 21, 1921

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

Private Business

Private Bills [ Lords ] (Standing Orders not previously inquired into complied with),—Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bill, originating in the Lords, and referred on the First Beading thereof, the Standing Orders not previously inquired into which are applicable thereto, have been complied with, namely:

Stock Conversion and Investment Trust Bill [ Lords ].

Bill to be read a Second time.

Harrogate Gas Bill,

Lords Amendments considered, and agreed to.

Lee Conservancy Bill,

Thames Conservancy Bill,

Read the Third time, and passed.

Pier and Harbour Provisional Orders (No. 1) Bill,

Pilotage Provisional Orders (No. 7) Bill,

Read the Third time, and passed.

Oral Answers to Questions

Ex-Service Men

Public Charity (Appeals)

asked the Minister of Pensions if his attention has been called to the many cases of ex-officers and men who are playing organs and musical instruments in the streets, and are thereby appealing for public charity on the ground that the Government, after fully availing itself of their services, has left them broken and penniless; and what steps, if any, he has taken to inquire into the genuineness and facts of these cases, with the object of nullifying such grievances as exist and thereby ending a grave public scandal?

Inquiries are made by my Department regarding any particular case in which it is suggested that the man was disabled in the War and has not received his due from the Ministry. Further than that, I do not think I can interfere; but I may inform the House that in many instances inquiries have shown that the representations made to the public were far from being genuine, and that the real reason for adopting this means of livelihood is to be found in its lucrative returns.

Will the right hon. Gentleman concentrate his attention upon these individuals who are masquerading as ex-service men?

We have done that in one or two cases, and shall keep an eye on them.

Civil Service

asked the Financial Secretary to the Treasury whether all ex-service men of the same grade who have qualified for permanent posts in the recent Civil Service examination will be paid the same rate of salary irrespective of age; and, if so, whether, having regard to the recommendations in paragraph 26 of the Ramsay Report on the organisation of the Civil Service, and paragraph 9 of the Scott Report on temporary staffs, and to the hardship to older and married men who have qualified and will receive the same salary as successful candidates of 18 years of age, he will introduce some arrangement to remedy this inequality?

The question of the initial pay of ex-service candidates appointed to the clerical class as the result of the recent examination was fully considered by the Lytton Committee, who arrived at the conclusion that it would not be right to base the rate of starting pay either on the age of the candidate or on the length of service rendered, but that it would be more equitable to determine it by reference to the rate of pay received in a temporary capacity. H.M. Government are satisfied that this decision is the fairest that could be reached in the circumstances, and they see no reason to depart from it.

Are we to understand that in some cases middle-aged married men will draw the same pay as candidates who are 18 years of age?

I do not know that there are cases so extreme as that, but certainly the result of the basis to which I have referred will be that the limiting condition for starting pay is not the age of the candidate, but his temporary pay.

Naval and Military Pensions and Grants

Dependants' Pensions

asked the Minister of Pensions whether, in view of the great anxiety felt by thousands of war widows and others entirely dependent on such money in anticipation of a promised revision of such rates with a view to permanence, he is in a position to make a statement indicating whether there is any intention to abolish, or very seriously curtail, the allowance to widows, orphans, and dependants; and whether he purposes making special provision for the elementary, secondary, and technical education of war orphans and fatherless children?

The Bill at present before the House does not in any way interfere with the amount of rates of pensions and allowances to ex-service men and their dependants.

Regional Office, South-Western Area

asked the Minister of Pensions how many persons, male and female, are employed at the regional office for the south-western area; what is the total of salaries and wages per annum; and what is the cost, under the various heads, of rent, rates and taxes, lighting, heating and cleaning, stationery and printing, travelling expenses, and miscellaneous?

The total number of staff employed in the Regional Headquarters Office is 396 male (of whom 384 are ex-service men) and 37 female. The total annual expenditure on salaries and wages in respect of this staff is £93,994. I am making inquiries regarding the remainder of the question, and will communicate with my hon. Friend.

Does not that seem to be an enormous total for salaries and wages, apart from upkeep?

I know, and if my hon. Friend will do me the honour of reading my Second Reading speech he will see that I appreciate that.

Poland (Munitions)

asked the Under-Secretary of State for Foreign Affairs whether he has information to the effect that a French steamer laden with war material, including 38 cannons and 608 tons of munitions, destined for Poland, has lately arrived in Danzig?

I have no information on the subject.

Will the hon. Gentleman make inquiries on this matter, with a view to making it clear whether munitions are going into the Danzig district, and for what purpose?

I will consider that, and perhaps my hon. and gallant Friend will give me the source of his own information.

Egypt

asked the Under-Secretary of State for Foreign Affairs whether he has any official information to the effect that the district commissioner of Al Mahalla, together with his assistant, beat with a whip a man named Abdul Kader Sharaf, because he would not sign a declaration of confidence in the Adly Cabinet; that the authorities entered the house of the daughter of the late Mustapha Khalil Pasha, arrested her son, and took from him declarations of confidence in Saad Zaghloul Pasha, signed by 6,000 persons; that the village police of Meet Abu Ghaleb, in the Sherbeen district of Gharbez province, and of other places, have been made to sign declara- tions in support of Adly Pasha at the time when they were receiving their pay; that the mayor of Khalama forcibly took from the inhabitants of that village declarations of confidence in Zaghloul Pasha; and that the mayor of Samadone, in Mennfeza province, together with his assistants and the village police, all resigned as a mark of protest against acts of coercion which they were required to perform in order to obtain support for Adly Pasha?

No, Sir, I have no information with regard to any of these alleged incidents.

Is it not a fact that these occurrences have been widespread, and that in spite of these occurrences there has been a large number of declarations in favour of Zaghloul Pasha?

There appears to be an equal number of declarations in favour of Adly Pasha.

If my hon. Friend will read the answer which I gave to him yesterday, he will see that it appears that the number of signatures to these various appeals far outnumbers the total population of Egypt.

If I send the hon. Gentleman the figures and statistics that we have, will he try to verify them?

I will do my best, but perhaps my hon. Friend will guide me as to the best way of verifying them.

Are there any such places as the two provinces called "Gharbez" and "Mennfeza"?. I have never heard of them.

Elementary School Accommodation

asked the President of the Board of Education how many scholars were on the roll of the elementary schools of England and Wales in August, 1914, and the number on the roll at present; and whether the accommodation for seating is equal to the pre-war standard?

In 1913–14 the number of scholars on the registers of elementary schools in England and Wales was 6,111,028. On 31st January, 1919, the latest date for which complete figures are available, the number of scholars was 5,917,854. Owing to difficulties of building, movement of population, and the financial condition of the country, it has not been possible in all cases to maintain the standard of accommodation at the level prevailing before the War.

Does the right hon. Gentleman think that there is adequate school accommodation for the number of children who are eligible?

Is the right hon. Gentleman really satisfied with the figures he has just given?

Is not the keeping up of the pre-War standard of seating accommodation in elementary schools the least we can do?

It is certainly very desirable that the pre-War standard should be maintained, but I think hon. Members will realise the very great difficulties under which the Board labours at the present moment.

asked the President of the Board of Education the number of scholars on the roll of the secondary schools of England and Wales in August, 1914, and the number on the roll at present; and whether the accommodation for seating is equal to the pre-War standard?

The number of pupils in secondary schools in England and Wales recognised for grants was about 198,000 in 1914 and 339,000 in 1920. Owing to the difficulties in the way of building, many of the schools are overcrowded, or have had to make use of temporary accommodation, such as Army huts or private residences, and the standard of accommodation is consequently and inevitably in many cases lower than it was before the War.

Is not that also the case in many private schools and in public schools?

Rhodesia

asked the Secretary of State for the Colonies whether he will see that responsible government is not given to Rhodesia without votes for such responsible government being given to the natives on an educational franchise and. on the same terms as given to Europeans, or until sufficient native electors are on the roll to protect native interests?

The existing law, which contains an educational test, enables a native to be registered on exactly the same qualifications as a European. Lord Buxton's Committee recently recommended that the natives' right to the franchise should be protected, and this recommendation has the hearty approval of His Majesty's Government. Beyond this, however, they are not prepared to go.

Is the hon. Gentleman aware that at the present time there are so few natives with votes that if responsible government is given to Rhodesia the interests of the natives cannot possibly be looked after?

My hon. and gallant Friend is aware that Lord Buxton's Committee was very careful to lay down provisions by which the rights of the natives should be protected. In the opinion of His Majesty's Government those provisions, if carried out, are adequate.

Is the hon. Gentleman not aware that the only way in which the interests of the natives can be permanently guaranteed, once responsible government is given, is by the natives having a vote proportionate to the importance of their interests?

I cannot accept that, because that would imply criticism, which I do not think is well founded, of the administration in the past.

Is the hon. Gentleman aware that the experience in Natal in 1906 conclusively proved that the safeguards proposed by Lord Buxton's Committee were absolutely nugatory in practice?

No, I cannot accept that view. My hon. Friend will find the matter argued at length in the Report of Lord Buxton's Committee, and I am not disposed to share his criticism of their judgment.

Is the hon. Gentleman aware that the Report of Lord Buxton's Committee is one of the most reactionary documents that ever came out of South Africa?

asked the Secretary of State for the Colonies when it is expected that he will receive the delegation of the Rhodesian Legislative Council to discuss the outstanding financial and constitutional questions regarding the future of Southern Rhodesia; and whether he will give an undertaking not to promise any payment or loan-guarantee at the expense of the Imperial taxpayer to Rhodesia before consulting Parliament?

I am expecting the delegation of Elected Members towards the end of September. No financial obligations will be undertaken without the consent of Parliament.

asked the Secretary of State for the Colonies what is the present estimated white and native population, respectively, of Southern Rhodesia; what were the same populations in Natal when responsible government was granted to that Colony; whether, when responsible government was granted to Natal, the Natal Government had any assets in the way of land, minerals, or railways at its disposal; and whether any grant or loan was made by the British taxpayer to the responsible Government of Natal during the first five years of its existence?

The European population of Southern Rhodesia as disclosed by the census taken last May is about 33,500. The native population is estimated to be 770,000. The corresponding figures for Natal when responsible government was granted are approximately 47,000 and 456,000, and there was also an Indian immigrant population of 41,000. The Natal Government at that time owned about 400 miles of railways and 3,500,000 acres of unalienated land. Land sales in 1893–94 amounted to £36,000. The revenue derived from minerals seems to have been negligible No loan was made by the Treasury during the first five years, but there was a public debt of about £7,000,000 at the end of 1893.

Is the hon. Gentleman satisfied that the constitution given to Natal provided adequate safeguards for the interests of the natives and the Indian population?

asked the Secretary of State for the Colonies whether, before any further financial or constitutional commitments are entered into by this country in respect of Southern Rhodesia, the Government of the Union of South Africa will be fully consulted; and whether he has received from the Government of the Union of South Africa any representations regarding the proposals with regard to the future holding and disposal of the remaining unalienated lands of Southern Rhodesia as set forth in the Buxton Committee's Report?

As stated in reply to another question by my hon. Friend, I am expecting a delegation of elected members at the end of September to discuss the proposed Constitution, and no action will be taken in the meanwhile. With regard to the second part of the question, I have received no representations from the Union Government.

Government Hospitality

asked the Prime Minister if he is aware of the costly repast given at the expense of the Government's Hospitality Fund at the Savoy Hotel on Friday, 15th July, to the Anglo-American professors of history; if he will state the actual cost per guest entertained; whether he is aware that many of the American guests considered the parade of expensive liquid refreshments to be quite unnecessary, in view of their national attitude on this matter; and will he consider whether greater economy can be exercised at all hospitality functions in the future, in view of the urgent need for national economy?

The First Commissioner, who administers this fund, is reluctant to publish cost sheets of Government entertainments, which vary in scale, character, and cost; but he is quite willing to meet any hon. Members interested in the subject, and explain the actual outlays to them. The expenditure is, of course, submitted to the Comptroller and Auditor-General. The First Commissioner does not share the opinion of the hon. Member that the recent entertainment of the Anglo-American professors was extravagant, and he can further give an assurance that every possible economy is exercised at these functions, and that both he and the Treasury will continue to maintain strict control over the expenditure of the fund.

Is the hon. and gallant Gentleman aware that the opinion of extravagance is one formed by many of the guests?

Will the hon. and gallant Gentleman observe the statement that their view was that the parade of expensive liquid refreshments was quite unnecessary in view of their national attitude on this matter? It says nothing about their personal attitude, and it is possible their attitude may be that of the Scottish magistrate, a teetotaller, who was found drinking champagne at a. deputation, and said it was purely local business.

Housing

Unemployed Labour

asked the Prime Minister if the Government are prepared to favourably consider the erection of further houses under the Housing and Town Planning Act, 1919, in those districts where there is a surplus of unemployed labour in the building trade and where the absence of further housing provision will inflict serious hardship on the district?

The special circumstances of individual local authorities in relation to housing will receive careful consideration within the general limitations of the housing programme which I explained last Thursday.

As, owing to the shortage of houses, mobility of labour is not possible, would it not be more economical to use the labour where it is.

The forthcoming Debate will afford an opportunity of discussing that question.

Private Builders

( by Private Notice )asked the Minister of Health whether private builders who have purchased land for building purposes, and who have had plans prepared prior to 14th July, and are in a position to commence building within the next five weeks dating from 21st July, can proceed with their building operations, relying upon the Government subsidy being granted subject to the above conditions being complied with?

The answer to the question is in the affirmative. I will explain the position in detail in the statement which I shall make later in the afternoon.

Flats (Rating Assessments)

asked the Minister of Health whether his attention has been drawn to the action of certain local rating authorities in raising the assessments on houses recently converted into flats to a figure in excess of the assessment on pre-War flats of similar size and value; whether such action is in accordance with the policy of the Government; and, if not, what instructions he proposes to issue to local authorities in the matter?

My attention has been called to cases of this kind, but I am advised that there is nothing in the Rent Restrictions Act or any other Statute to limit the assessment of new or reconstructed houses to that of pre-War houses of a similar character, and, in any case, I have no authority to give any directions to assessment authorities on the matter.

Huts, Hanwell

asked the Minister of Health whether he is aware of the widespread distress in Hanwell, Middlesex, through the lack of proper housing accommodation; whether huts, capable of housing about 100 families, are standing empty and unused in Framfield Road, Hanwell; whether these huts were utilised during the War for housing Belgian families; and whether they can now be employed in accommodating ex-service men and their families, who, in some cases, are compelled to live in one room with as many as seven children?

Royal Navy (Obsolete Ships, Replacement)

asked the Prime Minister whether contracts for new capital ships will be placed before the results of the negotiations for naval disarmament are known?

asked the Prime Minister whether, in view of the Conference shortly to be held at Washington on limitation of armaments and the urgent need of economy in every direction, he will give instructions to the Admiralty to suspend all work on designs and collection of material for new capital ships until the recommendations of that Conference have been carefully considered by the Government?

As stated in the First Lord's Memorandum, explanatory of the Navy Estimates, it cannot be too strongly emphasised that, in making this long-delayed beginning with the replacement of obsolete ships, the Government neither commits itself to, nor contemplates, any building " Programmes" in answer to those of any other Power. Indeed, it trusts that it may be possible, as a result of frank and friendly discussion with the principal Naval Powers, to avoid anything approaching to competitive building, either now or in the future. But, meanwhile, it would be a dereliction of duty on the part of the Admiralty to allow the efficiency, training, or moral of the Royal Navy to deteriorate through neglect to provide it with material which is equal to the best, and in which it can feel confidence. It is also imperative to avoid an irrevocable loss of time and building facilities, which might make it impossible to maintain our sea security if it should be threatened. These are the reasons which make it essential for the Government to proceed with its policy of replacing obsolete capital ships, and this necessity is not affected by the possible success or failure of the forthcoming Wahington Conference.

Is it not a fact that once a contract is placed we are committed to the programme? Would it not be possible to postpone the placing of the contract until, as we hope, the good results of the Conference are known?

I do not see how the Washington Conference could affect these four ships at all.

Does this mean that if there were no opposing navies at all we should still be replacing these obsolete ships?

Does it mean that whatever the results of the Washington Conference we are definitely pledged to spend £28,000,000 on these four ships?

Assuming that the Washington Conference is a complete success I do not think that would remove the obligation we are under to build these four ships.

Then we may take it the results of the Washington Conference will not relieve our naval expenditure?

Washington Conference

asked the Prime Minister who will be the British delegates to the Washington Conference?

Peace Treaties

German Territory (Occupation)

asked the Prime Minister when it is proposed to dispense with the sanctions enforced by the occupation of Dusseldorf, Duisburg, and Ruhrort?

I can make no statement on this matter, pending the meeting of the Supreme Council of the Allies.

Upper Silesia

asked the Prime Minister if he is in a position to report any further progress in the settlement of Upper Silesia; if he is aware of the great damage done, and being done, to industrial undertakings in the province during the Polish insurrection and invasion; and who will be required to make good this damage?

No further progress in the settlement of Upper Silesia can be effected until the next meeting of the Supreme Council, the date of which is still the subject of negotiations between the Allied Governments. I have no details as to the amount of damage done to industrial undertakings. This question, as also that of reparation for the damage, is being examined by a special tribunal appointed by the Inter-Allied Commission, who will doubtless report their conclusions in due course.

Can the right hon. Gentleman assure the House that all the Allies are acting in complete . accord in Upper Silesia as far as that policy is concerned?

If the French refuse an opportunity for discussion of the Upper Silesian question, is there any means whatever by which we can force a settlement?

Ex-German Ships

asked the Prime Minister if the task of selling German shipping on behalf of the Reparation Commission or the Government has been undertaken in this country by any State Department, and, if so, which; what staff is employed; what are the salaries paid; if the Department is assisted by advice from others than members of its staff; and what, if any, are its responsibilities to the Reparation Commission?

German ships allotted to Great Britain are being sold on behalf of the Reparation Commission by Lord Inch-cape. Lord Inchcape is making no charge for his services. He is assisted by an Advisory Committee, consisting of Sir Joseph Maclay, Sir Ernest Glover, and Sir John Esplen, together with a representative of the Treasury. All sales have to be approved by the Maritime Service of the Reparation Commission.

asked the Prime Minister who are the members of the Reparation Commission; whether they fixed, during 1919, 1920, and the first four months of 1921, that Germany should pay any part of her obligations for reparations in ships; and, if so, will he say whether any part of her obligations has been paid in such manner, and, if so, in what instalments and on what dates; also, if he will say what value, if any, in gold marks Germany placed on such ships; what steps the Reparations Committee have taken to realise the value of these ships, and, if any, whether the whole or any number of the ships have been sold, and, if so, what has been the equivalent amount in gold marks realised on those sold; and what is the equivalent value in gold marks of those remaining unsold?

The answer to this question is lengthy, and, with the hon. and gallant Member's permission, I will circulate it in the OFFICIAL REPORT.

The following is the answer:

The members of the Reparation Commission are:—

Monsieur Dubois, Chairman and French Delegate.

The Marquis Salvage Raggi, Vice-Chairman and Italian Delegate.

Sir John Bradbury, G.C.B., British Delegate.

Monsieur Delacroix, Belgian Delegate.

Mr. Sekiba, Japanese Delegate.

Monsieur Diouritch, Serbian Delegate.

In addition, each of the above countries is represented by an assistant delegate.

Mr. Boyden is unofficial representative of the United States of America.

The obligation upon Germany to deliver ships by way of reparation is laid down in Annex III to Part VIII of the Treaty of Versailles; the Reparation Commission had the power under Article 235 to demand the delivery before 1st May, 1921, of ships other than those referred to in this Annex, but did not exercise this power. Up to 1st May, 1921, Germany had delivered 402 ships of 2,148,654 gross tonnage. I am unable to say in precisely what instalments and at what dates delivery has been effected, but the process of delivery has been continuing since the coming into force of the Treaty. Up to the present time about 2,500,000 tons have been delivered and about 250,000 tons remain to be delivered. I am unable to state what value Germany placed upon the ships delivered, but I understand that the German Government has agreed that the estimate of their value originally submitted to the Reparation Commission was too high. The ships allotted to this country (which form roughly 70 per cent. of the whole) are being sold on behalf of the Reparation Commission by Lord Inchcape. Up to the 18th instant, 320 vessels of about 1,430,000 tons had been sold at a price of about £18,300,000, or roughly 300,000,000 gold marks (from which considerable deductions for delivery and other expenses have to be made). I am unable to reply as to ships allotted to other countries, nor can I give figures as to the value in gold marks of the ships remaining unsold.

asked the President of the Board of Trade whether he has any information as to the cost of production per ton during 1919, 1920, and the first four months of 1921, of shipping similar to that of the German ships, if any, which have been taken over by the Reparation Commission and offered for sale in this country?

The ex-German ships sold on behalf of the Reparation Commission were of very varied types, and it would be impracticable to give a figure representing the present cost of production per ton of that fleet; but there is no doubt that the present-day cost of building is much greater than the price at which the ships are being sold.

Court of International Justice

asked the Prime Minister whether the Government have yet ratified the convention for the establishment of the permanent Court of International Justice?

The instrument of ratification has been submitted to the King for His Majesty's signature. It will be deposited at Geneva as soon as possible.

German War Criminals (Trial)

asked the Lord Privy Seal whether his attention has been called to a Notice of Motion relating to the Leipzig trials standing in the names of a large number of Members representative of all sections of the House; and whether, in view of this evidence of widespread interest in the subject, ho will grant a day for discussion of the Motion?

Yes, Sir. I have seen the Motion referred to. I would, however, refer the hon. Member to what I said to him on Monday last is reply to a similar question.

Is the right hon. Gentleman aware that on the 23rd June, speaking on behalf of the Government, the Solicitor-General said:

"When the present series of trials at Leipzig has been concluded, and further information concerning them is available, this House will be afforded an opportunity of discussion, if that is the generally expressed desire of hon. Members."— [OFFICIAL REPORT, 23rd June, 1921; col. 1539, Vol. 143.]—

and that on the 11th July, the Attorney-General answering a similar question said:

"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."—[OFFICIAL REPORT, 11th July, 1921; cols. 877–8, Vol. 144.]

Does the right hon. Gentleman mean that these two undertakings, given on behalf of the Government, are to be disregarded, and that we must take our chance on the Consolidated Fund Bill when anybody can talk about anything?

I am not certain that there is the generally expressed desire on the part of the House to which my right hon. and learned Friend referred. We must consider the general condition of public business and the work we have to get through, and having regard to that, I am sorry that I am unable to afford any opportunity other than the Consolidated Fund Bill discussion.

Is the right hon. Gentleman aware that the Notice of Motion bears the signatures of nearly 100 Members, representing every section of the House. If he cannot give a day for this motion, will he put down the Foreign Office Vote one day, on the understanding that the discussion will be taken then?

All the Votes will be taken by arrangement through the usual channels. The number of Supply days still remaining is very small.

I beg to give notice that, at the end of questions, I shall ask leave to move the Adjournment of the House on this matter.

Is the right hon. Gentleman aware that most of these persons are Freemasons?

German Reparation (Recovery) Act

asked the President of the Board of Trade if he is aware that very considerable inconvenience, and at times very serious losses, are being incurred by traders from the delays in passing German goods through the Customs under the Reparation Act; that large quantities of goods for which full statutory declarations have been made are being held up in the Customs, not merely weeks, but months, without any reason being given; that considerable misunderstanding exists as to the exact form the affidavits should take; and will he, in the interests of the business community, arrange that a notice shall be issued by the Customs stating the exact form of proof required?

I assume the hon. Member refers to goods in respect of which claims for exemption have been made, and I would refer him to the reply given on the 23rd June to the Hon. Member for the Spen Valley Division. Public notices indicating the various exemptions from the levy and the manner in which claims for exemption should be made have been freely distributed to importers. In cases where the claim to exemption is not in order the requirements are explained by letter, attention being drawn to the fact that, pending completion of the claim, immediate delivery of the goods may be obtained under bond.

Minister Without Portfolio

asked the Prime Minister what arrangements have been made for carrying out the duties of the Minister without Portfolio until the end of the present Session?

The duties of the Minister without Portfolio, as far as the Cabinet is concerned, naturally ceased with his resignation. His duties on Committees will be discharged as required by other Ministers.

Are we to understand that the work of the Cabinet has decreased since the resignation of the Minister without Portfolio?

It must surely be obvious, even to the hon. and gallant Gentleman, that you cannot appoint a special Minister for one month.

Are we to understand that what the right hon. Gentleman has said about the absolute necessity of this Minister when he was defending his retention is not so?

I do not see why the hon. Member should make that assumption. It undoubtedly is an inconvenience that my right hon. Friend should have resigned before the end of the Session, and that we should have to get along the best way we can, but we cannot appoint a Minister merely for one month.

Government and Press Facilities

asked the Prime Minister to which newspaper or newspapers will in future be granted the special facilities hitherto enjoyed by the "Times?"

I have nothing to add to the full statement which I made on Monday last in reply to questions on this subject.

Is the right hon. Gentleman aware that when he made that statement he said there were very special facilities accorded to the " Times " newspaper? Is that the case, and if it were the case are these special facilities to be given now?

asked the Prime Minister whether, in view of the withdrawal of certain privileges from the "Times" newspaper, he will state whether any newspaper or newspapers may be now considered as representing official opinion?

No, Sir. There is nothing in this country in the nature of an official Press.

Has the right hon. Gentleman seen the statement of the "Times'' that their news service is better than the Foreign Office news service?

Has the editor of the "Daily Herald" had the same privileges as all the other papers?

Is it a fact that the "Times" newspaper had special privileges? If so, are those special privileges now dispensed with, or are they to go to another newspaper, and, if so, which?

Russian Securities

asked the Prime Minister whether his attention has been called to the important ruling of Mr. Justice Paterson in the case of A. G. Marshall v. Mary Grinbaum and others, where the plaintiff, as holder of Russian State bonds, failed in his claim to seize 7,500 gold roubles deposited in the Bank of England, and of which the said Miss Grinbaum was custodian, as agent for the Soviet Government; what steps he proposes to take to protect the holders of the many millions' worth of Russian securities held by British citizens; and what action he intends to take to protect the interests, not only of the holders of Russian securities, but of the taxpayers who advanced millions to that country during the War?

The decision referred to was based on the failure of the plaintiff to establish that the gold roubles were charged with the payment of the State bonds, and the Government does not propose to take any steps in consequence of the decision, the soundness of which there is no reason to question.

Maltreatment of British Subject, Florida

asked the Prime Minister whether his attention has been called to the flogging, tarring, and feathering of the Rev. Philip Irwin, a British subject, at Miami, Florida, for preaching social equality between blacks and whites; and whether any representations have been made to Washington respecting the treatment of this Christian, who is also a British subject?

My attention has been called to the case in question. I feel confident that the proper United States authorities will take all such steps as may be necessary to see that justice is done, without representations to that effect from His Majesty's Government.

Have His Majesty's Government considered the desirability of advising emigrants to the Southern States of North America as to the desirability of imposing their opinions of international brotherhood as expressed in the Scriptures?

Has the hon. Gentleman observed that the hon. Member for Plymouth (Viscountess Astor) pointed out that the Sinn Feiners engaged largely in outrages were the only teetotallers in Ireland, and is not that due to prohibition in America?

Minimum Wages

asked the Prime Minister whether the Government, as promised in the King's Speech and in the House of Commons, will introduce and carry into law a Minimum Wage Bill which would ensure a decent standard of comfort in the houses of the workers of this country; and whether, as the passing of such a Bill would tend to allay indus- trial unrest in the country, the Government will consider the advisability of having an Autumn Session to deal with this and other important matters?

For reasons already given, the Government think it important to avoid an Autumn Session this year, and we are not prepared to propose the re-assembling of Parliament in the autumn for the consideration of a Bill on this subject.

Is this to be considered as another of the broken pledges of the Government? Can the right hon. Gentleman hold out no hope of this Bill being passed in the short life of the present Parliament?

Did not the Prime Minister give a very definite and specific pledge on this matter less than two years ago?

Ireland

Police Pensions

asked the Prime Minister whether he will, as part of the suggested terms of settlement of Irish affairs, make provision for the grant of improved pensions for pensioners of the Royal Irish Constabulary and Dublin Metropolitan Police which will relieve the men and their families from the condition of poverty verging on starvation in which many of them now find themselves?

I cannot accept the hon. Member's description of the position of these pensioners. In any case questions of this character must be dealt with on their merits.

May I ask the Prime Minister whether in considering this question of a settlement in Ireland consideration will be given to the claims of this unfortunate class, the Royal Irish Constabulary pensioners and their families?

My hon. and learned Friend may rely upon it that in any settlement that may take place it will be regarded as an obligation of honour on our part to see that these gallant men are looked after. I can assure my hon. Friend that this is one of the questions we considered last night, and we felt that it was an obligation on our part to make it one of the considerations of a settlement.

Will the same consideration be shown to the old-age pensioners in England?

In speaking of the Royal Irish Constabulary, did the right hon. Gentleman include the Auxiliary Division attached to the Royal Irish Constabulary, and will their case be taken into consideration?

Does the right hon. Gentleman suggest that pensions are to be paid to these men who have been brought over to Ireland from England?

I am not going to say what will be done. We shall certainly consider their case and see that fair play is done to them in any settlement which takes place. That is our obligation.

Conference With Mr. De Valera

Has the Leader of the House any statement to make as to the position with regard to the Irish situation?

At 11.30 this morning, the Prime Minister and Mr. de Valera had a further conference which lasted about an hour.

A basis for a formal conference has not yet been found. Mr. de Valera has arranged to return to Ireland to-morrow and to communicate with Mr. Lloyd George again after further discussion with his colleagues.

Medical Research (Awards)

asked the Prime Minister whether, in view of the vital importance of medical research to the health of the nation, the prevention or cure of disease and the alleviation of pain, there can e provided a fund from which can be paid awards for discoveries or inventions which contribute to the general health of the community and which are placed gratuitously at the service of the public, pensions to those who have become totally or partially incapacitated in the course of research; and pensions to dependents of those who have directly or indirectly as a result of their devotion to research?

I see no ground for differentiating medical from other forms of scientific research which may be of equal value to the community, and I doubt whether any system of pecuniary rewards would in the long run be beneficial to science or medicine. The difficulty of apportioning merit for even the greatest of discoveries is often overwhelming; monetary rewards would lead to jealousy instead of co-operation among research workers, and might prove to be an incentive to work for results which are sensational rather than for the advancement of scientific knowledge. The question was fully discussed at a deputation which I received on 7th March, 1920, at the Privy Council Office.

Does the right hon. Gentleman recognise that in one branch alone, the research into the value of X-rays, a great number of medical men have lost their lives, and their dependents get no recognition from the nation?

I believe there were in the early days of X-ray investigation very serious results to some medical men who lost their lives. Of course, their dependents are eligible for pensions. The Royal Bounty Fund is available for this purpose. Whether the Royal Bounty Fund is large enough is a question on which I am not competent to give an answer.

National Expenditure

asked the Lord Privy Seal whether he will give a day for a special debate when the replies of the Government Departments have been received in regard to reductions in their expenditure?

As I have already stated, the replies to the Treasury-circular are not due until the end of this month. When they are received they will require careful and detailed examination by the Treasury, which must inevitably occupy considerable time, and until that examination is completed any discussion on the subject would be premature.

Are we to have any discussion on this important matter before the House rises?

asked the Chancellor of the Exchequer whether he has received any replies from the Government Departments to the Treasury letter of 13th May respecting reductions in their expenditure?

A certain number of replies have been received, chiefly from the smaller Departments.

Before the Session closes, can the right hon. Gentleman give some indication to the House of what reductions the Departments propose?

It would be a great mistake, and it would serve no useful purpose, if we were to place a half-digested report before the House. It is obvious that after the Departments report what they can do it will be necessary for the Treasury officials and myself to make investigations to see what more can be done or whether enough has been promised. It would be useless to put before the House reports upon which we might not be going to act and which might require very much further discussion before anything could be done.

Will not the result be that the House of Commons will have no opportunity of considering the effects of this new policy of economy until next year, when it will be too late to do anything effective to regulate the expenditure of the country?

On the contrary, the House of Commons will have every opportunity before the expenditure of next year is decided to deal with the matter.

Does not every Department insist that its work is the most important in the State, and if a Department refuses to give way what is going to happen?

Colonel WEDGWOOD rose—

Army Estimates

asked the Lord Privy Seal whether, in view of the fact that the Army Estimates for the current year to the amount of £103,315,000 were introduced some months ago and have never yet been discussed, he can state on what day this Vote will be taken?

I regret that I see no prospect of being able to allocate one of the remaining Supply days to this discussion. Of the 20 days allotted for Supply under Standing Orders, 18 have already been taken, to-day being included in that number. An additional day over and above the 20 allotted days has already been promised, and I hope that it may be possible to grant a further day, but both these days will be required for discussions on other Votes. In these circumstances, I fear that it will be impossible to arrange for a discussion on the Army Estimates, but I would remind my hon. and learned Friend that there was a full discussion on Army expenditure on 15th March. There were also further discussions on the 18th and 20th April in connection with the Supplementary Estimates, while the discussions on the Middle Eastern Services were concerned to a very large extent with Army expenditure.

Is there any precedent in Parliamentary history for Army Estimates amounting to over £100,000,000 not being brought up for discussion in this House?

My hon. and learned Friend is resting on a technicality. The discussion this year took place on a Vote on Account instead of on the Army Estimates, owing to a change in the form in which the Estimates were produced.

Were the Estimates produced at the time the Vote on Account was taken?

Is the right hon. Gentleman aware that the Debate to which reference has been made was in no sense a Debate on the Estimates in the sense to which my hon. and learned Friend refers, but that it was a very general Debate and not a Debate on the Estimates such as the House has always been accustomed to?

The Debate was what it pleased Members of the House to make it. The Government are not responsible for that. If the right hon. Gentleman and the House generally prefer to have the Army Estimates on one of the remaining days, I will, of course, meet their wishes.

House of Commons Sittings (Friday)

asked the Lord Privy Seal whether he has considered the advisability of the House meeting on Fridays at 11 o'clock instead of 12 and rising at 4 instead of 5, thus enabling Members whose homes are several miles from Westminster to attend the whole sitting of the House and return to their homes for the week-end with much less inconvenience than is possible when the House does not rise till 5 o'clock?

If it is the general desire of the House that my hon. Friend's proposal should be adopted, I would gladly put a Motion on the Paper making the necessary alterations of time for Friday sittings, to take effect for the remainder of this Session. I hope that any hon. Members who have views on the subject will be good enough to communicate them to the Patronage Secretary so that we may gather what is the opinion of the House.

Will the Government consider the advisability of meeting every day at 2 o'clock, and finishing at 10 o'clock?

Parliamentary Secretaries to the Treasury

asked the Lord Privy Seal whether it is intended, at the close of the Session, to dispense with the-services of one of the Patronage Secretaries; and, if not, what departmental or public business he will be charged with when the House is not sitting?

I must refer the hon. Gentleman to the reply which I gave to my hon. Friend the Member for Wood Green on the 4th July. .

Has not the right hon. Gentleman already said that this appointment was a temporary one, and can he give me some definite time for its termination?

May I ask a question, and a rather personal one? Is it not a fact that a position had to be found for the ex-Minister of Food, and that he was appointed owing to that fact?

Mr. HOGGE rose—

Income Tax (Miners)

asked the Chancellor of the Exchequer if he is aware of many miners who are in arrears with their Income Tax; and, if so, will he empower the collectors to allow an extension of time to pay such tax, as the arrears are unpaid owing to the lock-out?

I would refer the hon. Member to the reply on this subject given yesterday to the hon. Member for Seaham.

Is the right hon. Gentleman aware that men have been summoned to recover payment of these taxes?

Mercantile Marine (War Pensions)

asked the Chancellor of the Exchequer whether his attention has been called to the fact that out of .the net profits made by the Mutual Norwegian War Risks Insurance Association, carried on during the War under the auspices of the Norwegian Government, the Norwegian Shipowners' Association have, in recognition of the bravery of the men of the Norwegian mercantile marine during the War, inaugurated a seamen's fund for the benefit of Norwegian seafarers, the capital of it amounting to between 16,000,000 and 20,000,000 kronen, out of which two-thirds will be used as a pension fund, four-thirtieths will be spent on homes for old sailors, three-thirtieths for education purposes, and three-thirtieths for seamen's homes and missions and life-saving institutions; and whether, having regard to the profits made by Government war risks associations in this country, the Government will consider the propriety of allotting out of these profits an amount which would create an adequate nucleus for a national pension fund for the masters, officers, and men of the merchant service of this country?

I regret to be unable to adopt this suggestion, in view especially of the present financial position. The Government have accepted responsibility for the payment of pensions in respect of merchant officers and seamen who lost their lives or were injured through War perils, and provision is made for this purpose in the Estimates, Class VI, Vote 4. The capitalised cost of these pensions is likely to exceed the profits received by the Exchequer from the various Government Marine War Bisks Schemes.

Does the right hon. Gentleman think it right that we should be less generous to the men of our mercantile marine than the Norwegian Government?

We are not less generous. We provide pensions to an extent that exceeds any profits which we have made on war risks.

Is there no regular allotment of money for the widows of these men, and cannot the matter be considered in view of the reparations that have been received?

Wages Boards

asked the Chancellor of the Exchequer the total cost per annum to the country of the various Wages Boards now in existence; the total number of staff employed under these Boards; whether it is the policy of the Government to dispense with any of them; if so, in what particular industry; and what will be the reduction, if any, in the cost of maintenance?

There are 71 Joint Industrial Councils as well as a very large number of voluntary Conciliation Boards dealing between them with wages and other questions affecting a large proportion of the industrial population of the country. There is no staff provided by the Government for these voluntary Boards and the State is not in any way responsible for the cost of maintaining them.

The total cost of the administration of the Trade Board Acts in Great Britain by the Ministry of Labour, including the travelling expenses and allowances of the representatives of employers and workers on the Boards, during the last financial year was £106,000; the total staff, whole-time and part-time, is 209.

There are, in addition, various Wages Boards dealing with particular industries under the control of Departments other than the Ministry of Labour. The cost of the Agricultural Wages Board is at the rate of £86,000 per annum, and the total number of staff employed by the Board and the District Wages Committees in England and Wales is 109. The cost of the Central and District Agricultural Wages Committees in Scotland is approximately £5,000 and the staff, mainly part-time, number 19. I am informed that the Central and National Railways Wages Boards involved no direct charge to the Exchequer last year, other than an item of approximately £100 for shorthand writing.

As regards the latter parts of the question, the hon. Member is aware that under the Corn Production Acts (Repeal) Bill, it is proposed to abolish the Agricultural Wages Board. The existing Central and National Railway Wages Boards are proposed to be continued as reconstituted under the Railways Bill. As regards Trade Boards, I must refer the hon. Member to the reply given by my right hon. Friend the Minister for Labour to the hon. Member for Ardwick on the 13th April last.

Does not the right hon. Gentleman think that these Boards of all kinds have done exceedingly good work in the interests of wage earners, and is it not the fact that they have been the means of saving many strikes and lock-outs?

Government Staffs and Offices

Treasury

asked the Chancellor of the Exchequer what is the total amount of war bonus payable to officials in his Department, including the subordinate departments, earning a salary of £300 and over; and what is the amount of extra salary payable under the assimilation scheme?

The total amount of war bonus at present payable to officers earning salaries of £300 or more is as follows:

The additions to salary consequent upon the assimilation scheme are approximately £2,700, divided as follows:

Treasury, £1,190.

Subordinate Departments, £1,510.

Board of Agriculture, Scotland

asked the Secretary for Scotland whether his attention has been called to the expense of maintaining the Scottish Board of Agriculture, whose salaries alone have increased from £13,000 in 1913 to nearly £150,000 last year; whether the officials thereof allege that the increase is due to land settlement; whether, in point of fact, each smallholder settled has cost, in administrative expenses alone, from £1,000 to £1,500; and whether, since it would be more economical to give the smallholder the use of the interest upon the capital sum involved in settling him and let him find a small holding for himself, he will disband this Department, for which practical and productive agriculturists have no use and which so far has been of no financial benefit to those for whose benefit the Department was inaugurated?

The answer to the first part of the question is in the affirmative. As to the second part, I would refer my hon. and learned Friend to the answer I gave to a question by my hon. and gallant Friend the Member for Dumfries on the 7th July. The estimate in part three of the question is erroneous, and consequently the fourth part does not arise.

Can the right hon. Gentleman say what the discrepancy is and what was the cost of each smallholder?

For 1921–22 the administrative expenses were £98,000 and about 1,000 men were settled on the land during that period. My hon. and learned Friend will see how outrageous his figures are in the circumstances.

Housing Sub-Inspectors (Women)

asked the Minister of Health, in view of the need for trained sanitary inspectors, he is dispensing with the services of four fully qualified women, who were invited by the Ministry in August, 1919, to give up permanent appointments with local authorities and to accept temporary appointments as sub-inspectors in the Housing Department; and whether he will consider the advisability of transferring these women either to the headquarters staff of the Ministry or of facilitating their transference to other suitable branches of the Civil Service for which their training and experience have fitted them?

I can only refer my Noble Friend to the answer given to the hon. Member for Middlesbrough West on 15th June last. The volume of work at headquarters would not justify me in transferring these officers to headquarters. I have no knowledge of any other Departments in the Service in which their services could be utilised.

Post Office

Telephone Service

asked the Postmaster-General why the charge for a private circuit telephone between the business premises of Mr. R. Anderson, printer, 142, West Nile Street, Glasgow, and the City Chambers has been increased from the sum of £5 12s. 6d. to £15 Is.?

The private circuit was installed in 1903 by the Glasgow Corporation for Mr. E. Anderson at a rental which has long been obsolete, but the old agreement has hitherto been allowed to remain undisturbed. In connection with the general revision of rates, all such agreements are now being terminated, and the rental in question, namely, £15 Is., is correctly calculated at the new tariff of £1 5s. per furlong for the wire, £2 for each telephone, and £2 6s. for extra apparatus.

Will the hon. Gentleman not admit that if the gentleman referred to was able to carry on for years at a charge of £5 12s. 6d. the present charge is extortionate.

I am inclined to think that the Glasgow Corporation did not ask him to pay sufficient in the past.

Circulars

asked the Postmaster-General whether he is aware that British advertisers, in order to avoid paying the increased postal charges on printed matter, are sending their circulars in bulk to the Continent to be posted there to their customers in Great Britain, and in this way saving over 100 per cent. on postage; and what steps he proposes to take to meet this situation, which, if continued, will mean a heavy loss in revenue to his Department?

I have nothing to add to the answers given on the 19th instant by my right hon. Friend on this subject.

It is a breach of the Postmaster-General's monopoly to send addressed circulars abroad in bulk for posting abroad, and the sender would be liable to penalties.

How would a tax of 33⅓ per cent. do in this printed matter posted abroad?

Unemployment

Benefit

asked the Minister of Labour whether he is aware that J. Ferry, J. Fletcher, and M. Fletcher, all miners of the Malton Lodge, County Durham, have been refused unemployed benefit and struck off the list, because they had only verbal evidence to state that they had sought work, and not written evidence of employers; is he aware that these men are anxious to have work, but still cannot get it; and will he see that these men are again placed on the list of those entitled to unemployed pay until they can get work?

I am having inquiries made, and will let my hon. Friend know the result.

asked the Minister of Labour whether he is aware that, under the new provision of a waiting period of six days before unemployment benefit is payable, a man who is employed on systematic short time, working only alternate weeks, procured a day's work during one of his off weeks and earned 10s., with the result that, having registered at the exchange for only five days that week, the next week off had to be the waiting period, and for working for one day for 10s. he lost 15s. unemployment benefit; and whether, in view of the fact that such circumstances will encourage men to remain in idleness during their off weeks, he will consider the advisability of restoring the old waiting period of three days?

The effect of the recent amendment of the Unemployment Insurance Acts is as stated in the question. Some anomalous cases are, I am afraid, unavoidable under almost any rules. Having regard to the circumstances in which this amendment and others effected by the Act of the 1st July became necessary, I regret I cannot undertake to propose the legislation which would be necessary for the purpose of making any change in this connection.

Is the right hon. Gentleman prepared to try to meet the case of the casual worker, as since the operation of the Act we have come across exceedingly hard cases?

I have asked some friends of the casual labourer to meet me in order to see whether, within the law, anything is possible. I cannot go outside the law.

When this consultation takes place, will the right hon. Gentleman be good enough to receive some officials of the union I represent, which includes a very large number of casual labourers?

I must consult those whom I have already invited. I think there will be no difficulty about it.

Out-Door Relief

asked the Minister of Health whether he is aware of the serious expenditure being incurred by the guardians of the Gates-head union in granting out-door relief to able-bodied men and their families which has necessitated the levying of a special rate of Is. in the £; and whether he can state under what authority such relief has been granted apparently in contravention of the Out-door Relief Prohibitory Order and the Out-door Relief Regulation Order?

My attention has not been previously drawn to the levying of a supplementary rate in this union. The Orders cited by my hon. and gallant Friend were rescinded by the Relief Regulation Order, 1911. The existing Order enables guardians to grant out-door relief to able-bodied men if, upon consideration of the special circumstances of any particular case, they deem it expedient to do so and they do not receive a notice from the Ministry disapproving thereof.

asked the Minister of Health whether he is aware that the abnormal amount of unemployment in various industrial areas of the country has saddled boards of guardians with large increases in out-relief; that there is going to be a substantial increase in the rates; and that the Poor Law unions are protesting against having to bear this liability, as they consider that it should be met by the Government; and what steps, if any, are being taken by the Government to ease the burden and heavy charge on local authorities?

I would refer the hon. Member to the reply which I gave yesterday to the hon. Member for the Hems-worth Division, of which I will send him a copy. I would draw the hon. Member's attention to the very substantial assistance given to distress in these areas under the Unemployment Insurance Act which is pro tanto relieving the local rates.

Is the right hon. Gentleman aware that, apart from the Act, an enormous burden has been placed on localities owing to the miners' stoppage, and will he give some consideration to proposals for the relief of that burden?

Census

asked the Minister of Health why no payment is made to the person responsible for filling up the schedule for the census in respect of public institutions, although payment is made at the rate of 10s. for the first hundred or part of a hundred persons enumerated, and a further 10s. for each complete hundred enumerated thereafter in the cases of hotels and lodging-houses; and is he aware that the filling up of the schedule for the census in the case of the large poor law institutions involves a very considerable amount of additional work, both by the master of the institution and the master's clerk?

I see no reason for making any further payment to the head of a public institution who is under an obligation to make a Census return in his official capacity, and who is already paid out of public funds.

Is the right hon. Gentleman aware that masters' clerks are not a very well-paid body of men, and that they have always had this relief before. Why is it stopped?

Anglo-Russian Trade Agreement

asked the President of the Board of Trade whether his attention has been called to the verdict of Mr. Justice Petersen in the Soviet gold case; and what effects it will have on the working of the Anglo-Soviet trade agreement?

I have seen the judgment in the case referred to. This judgment is not such as to bring Article 13 of the Anglo-Russian trade agreement into operation, and the working of that agreement will therefore continue unaffected.

Fertilisers (Nauru and Ocean Island)

asked the Minister of Agriculture whether a mixture consisting of ground phosphates from Nauru and Ocean Island with basic slag is a fertiliser which the farmer can use as an alternative to basic slag or superphosphate; and whether the percentage of phosphoric acid in this mixture is satisfactory?

The technical advisers of the Ministry are satisfied that the mixture in question is a perfectly satisfactory fertiliser in all conditions for which basic slag is suitable. There has been comparatively little experience in the use of ground phosphates as an alternative to superphosphate, but there is every reason to believe that the mixture will have good effect when used for arable crops, provided always that the conditions are favourable. In answer to the second part of the question, it is understood that the mixture which is now being offered for sale to farmers contains a larger percentage of phosphoric acid than the highest grades of basic slag generally available and a much larger percentage than the lower grades of basin slag which form the greater part of the British production.

Is the right hon. Gentleman's Department not pushing this Nauru Island fertiliser as against fertilisers made in this country?

British Army

Army of Occupation, Germany

asked the Secretary of State for War whether he will give the names of the seven British officers who, since the commencement of the occupation by the Army of the Rhine, have married German women?

No, Sir; no useful purpose would be served by giving this information.

; Is the hon. and gallant Gentleman the exclusive judge as to the usefulness of this information?

Temporary Officers (Gratuity)

asked the Secretary of State for War whether a temporary officer who is accepted on probation for a regular commission is required to refund the difference in the amount of gratuity payable to him in respect of War service as a temporary officer; and whether the repayment is required in those cases where the officer does not complete the probationary period?

Officers who are appointed on probation will not be required to make any refund in respect of their gratuity until their permanent commissions are confirmed, unless they voluntarily resign, in which case they will be required to make the refund. Any cases in which refund has already been effected contrary to this rule will be adjusted shortly.

Woolwich Arsenal (Discharges)

asked the Secretary of State for War if he can state what was the total number of employes working at the Woolwich Arsenal on 9th November, 1918, the number that have been discharged since the Armistice, and the number that are being discharged each week; and what will be the total strength working at the end of December, 1921.

The total number of civilian employés at the principal War Department establishments at Woolwich Arsenal, etc., on the 9th November, 1918, was approximately 98,000; the approximate number discharged since that date being 77,000. I regret that I am not at present in a position to say what will be the total strength in December next, but discharges have been resumed at the rate of 300 a week with effect from last week.

When the dismissals at the rate of 300 per week which are now taking place, finish, is the right hon. Gentleman aware that the (number of employés in the Arsenal will be below pre-War strength?

I cannot say at present what the number will be then. Reductions will be made consistent to the work being carried out in the most efficient manner possible. I cannot bind myself to a figure in relation to the pre-War standard. Discharges will take place where we cannot find sufficient work.

Is it intended to reduce the number to less than 5,000 between now and December?

Police Inquiries, Tottenham

asked the Secretary of State for the Home Department whether his attention has been drawn to a signed statement made by Mrs. Vena Wammer, of 67, Lawrence Road, Tottenham, between 24th November and 5th December, 1919, to the Criminal Investigation Department at Tottenham Police Station, to the effect that Mr. Smellie, of 69, Lawrence Road, had a fourth child, named Margaret, who had been kept a prisoner in his house and" finally done away with by her father with the assistance of Mrs. Ford, who lived in the same house, in March, 1919; whether, as a result of this, detectives visited and examined No. 69, Lawrence Road, and questioned Mrs. Ford; and whether it was proved to the satisfaction of the police that Mr. Smellie had never had a fourth child and that the whole tale was a wanton invention?

I am making inquiries with reference to this question. They are not yet completed, and I should be glad if the hon. Member would repeat the question later.

Colliery Accident, Lanarkshire

asked the President of the Board of Trade if he can state the causes leading up to the underground accident at Blantyre Ferme Colliery, Lanarkshire, whereby three persons were killed and several injured, due apparently to an explosion of firedamp?

The men injured in this explosion cannot yet be examined, and until this can be done I would prefer not to make any statement on the subject, beyond expressing my deep regret at the accident and my sympathy with the relatives of. those who lost their lives.

Business of the House

Will the Leader of the House indicate what business he proposes to take next week, and further, on what day will he make a statement to the House as to what business the Government have decided it is necessary for them to take before the Session closes?

On Monday we propose to take the Corn Production Acts (Repeal) Bill—Report stage and Third Reading.

On Tuesday, Supply, Treasury Vote.

On Wednesday, First allotted day of the Report stage of the Railways Bill.

On Thursday, if the Report stage and Third Reading of the Corn Production Acts (Repeal) Bill be obtained by 11 o'clock on Monday, I shall be in a position to give an extra day for Supply. This will be in addition to the one already promised, and I understand that it is desired to take the Scottish Estimates. But if the Corn Production Acts (Repeal) Bill be not finished on Monday, it will be necessary to take the Third Reading of this Bill on Thursday.

On Friday, we propose to take the Finance Bill, Third Reading.

I hope, on Tuesday next, to make a statement about the business for the re mainder of the Session.

Can the right hon. Gentleman state whether on Friday, when the Third Reading of the Finance Bill is taken, the Five o'clock Rule will be suspended?

No; I do not think that be at all necessary. Having regard to the question put to me earlier in the day as regards the House meeting at 11 o'clock on Friday and rising at four o'clock, I am sure it would be very discourteous to the House.

German War Criminals (Trial)

I beg to ask leave to move the Adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely, "the refusal of the Government to pledge itself to take steps at once to secure the trial of the remainder of the alleged German War criminals on the British list, and the opportunity thus afforded of further escapes from Germany of persons whose names are upon such list."

The pleasure of the House not having been signified, Mr. SPEAKER called on those Members who supported the Motion to rise in their places. Fewer than 40 Members, but not fewer than 10, having accordingly risen

I challenge a Division.

Question put, "That leave be given to move 'That this House do now adjourn.'"

The House divided: Ayes, 26; Noes, 95.

Division No. 279.]

AYES.

[3.50 p.m.

Barker, G. (Monmouth, Abertillery)

Hogge, James Myles

Sexton, James

Barnes, Major H. (Newcastle, E.)

Holmes, J. Stanley

Sueter, Rear-Admiral Murray Fraser

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

Locker-Lampson, G. (Wood Green)

Surtees, Brigadier-General H. C.

Benn, Captain Wedgwood (Leith)

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

Thomas, Sir Robert J. (Wrexham)

Butcher, Sir John George

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

White, Charles F. (Derby, Western)

Clough, Sir Robert

Murray, Dr. D. (Inverness & Ross)

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

Davies, A. (Lancaster, Clitheroe)

Nicholl, Commander Sir Edward

Foxcroft, Captain Charles Talbot

Norris, Colonel Sir Henry G.

TELLERS FOR THE AYES.—

Hannon, Patrick Joseph Henry

Prescott, Major W. H.

Mr. Bottomley and Major C. Lowther.

Hartshorn, Vernon

Raper, A. Baldwin

NOES.

Addison, Rt. Hon. Dr. Christopher

Gardiner, James

Macpherson, Rt. Hon. James I.

Amery, Leopold C. M. S.

George, Rt. Hon. David Lloyd

Mallaby-Deeley, Harry

Astor, Viscountess

Gillis, William

Mildmay, Colonel Rt. Hon. F. B.

Baird, Sir John Lawrence

Gilmour, Lieut.-Colonel Sir John

Mond, Rt. Hon. Sir Alfred Moritz

Baldwin, Rt. Hon. Stanley

Graham, R. (Nelson and Colne)

Morris, Richard

Boscawen, Rt. Hon. Sir A. Griffith

Green, Joseph F. (Leicester, W.)

Munro, Rt. Hon. Robert

Breese, Major Charles E.

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

Murray, C. D. (Edinburgh)

Bromfield, William

Greig, Colonel Sir James William

Neal, Arthur

Brown, Major D. C.

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

Parker, James

Brown, James (Ayr and Bute)

Halls, Walter

Pennefather, De Fonblanque

Brown, T. W. (Down, North)

Hancock, John George

Percy, Lord Eustace (Hastings)

Buckley, Lieut.-Colonel A.

Harmsworth, C. B. (Bedford, Luton)

Pratt, John William

Bull, Rt. Hon. Sir William James

Henry, Denis S. (Londonderry, S.)

Rankin, Captain James Stuart

Cairns, John

Hills, Major John Waller

Ratcliffe, Henry Butler

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

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

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

Carter, W. (Nottingham, Mansfield)

Hopkins, John W. W.

Rendall, Athelstan

Casey, T. W.

Irving, Dan

Richardson, R. (Houghton-le-Spring)

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

Johnstone, Joseph

Robinson, Sir T. (Lancs, Stretford)

Chamberlain, N. (Birm., Ladywood)

Jones, J. T. (Carmarthen, Llanelly)

Sanders, Colonel Sir Robert Arthur

Clynes, Rt. Hon. John R.

Kellaway, Rt. Hon. Fredk. George

Sassoon, Sir Philip Albert Gustave D.

Cowan, D. M. (Scottish Universities)

Kidd, James

Shaw, Thomas (Preston)

Craik, Rt. Hon. Sir Henry

Lawson, John James

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

Davies, A. (Lancaster, Clitheroe)

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

Simm, M. T.

Davies, Alfred Thomas (Lincoln)

Lloyd-Greame, Sir P.

Stanley, Major Hon. G. (Preston)

Doyle, N. Grattan

Lunn, William

Sturrock, J. Leng

Edwards, C. (Monmouth, Bedwellty)

M'Connell, Thomas Edward

Sutherland, Sir William

Edwards, Major J. (Aberavon)

M'Curdy, Rt. Hon. Charles A.

Thomas-Stanford, Charles

Finney, Samuel

Macdonald, Rt. Hon. John Murray

Wallace, J.

Fremantle, Lieut.-Colonel Francis E.

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

Wallace, Thomas Brown (West Down)

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

Wilson, Colonel Leslie O.(Reading)

TELLERS FOR THE NOES.—

Waterson, A. E.

Winterton, Earl

Sir P. Magnus and Mr. A. Hopkinson.

White, Col. G. D. (Southport)

wise, Frederick

Wilson, James (Dudley)

Young, E. H. (Norwich)

Indian Affairs (Joint Committee)

Minutes of Proceedings from 17th March to 13th July to be printed. [No. 180.]

Railways Bill (Allotted Portions)

Reported, with Amendments, from Standing Committee A.

Report to lie upon the Table, and to be printed.

Minutes of the Proceedings of the Standing Committee to be printed.

Bill, as amended ( in the Standing Committee and in Standing Committee B ), to be taken into consideration upon Wednesday next, and to be printed. [Bill 184.]

Bills Reported

South Essex Waterworks Bill [ Lords ],

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

Ministry of Health Provisional Orders (Aberavon, Neath, and Swansea Extension) Bill (changed to " Ministry of Health Provisional Orders (Aberavon and Neath Extension) Bill"),

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

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

Orders of the Day

Supply

[EIGHTEENTH ALLOTTED DAY.]

CIVIL SERVICES ESTIMATES, 1921–22.

CLASS VII.

Ministry of Health

Resolution [12th May reported]

"That a sum, not exceeding £15,245,098, be granted to His Majesty, to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1922, for the Salaries and Expenses of the Ministry of Health; including Grants and other Expenses in connection with Housing, Grants to Local Authorities, etc., sundry Contributions and Grants in respect of Benefits and Expenses of Administration under the National Health Insurance Acts, 1911 to 1920, certain Grants in Aid, and certain Special Services arising out of the War."

I beg to move, to leave out "£15,245,098," and to insert instead thereof " £15,244,998."

4.0 P.M.

I move this Amendment in order that I may—under discouraging conditions, so far as any sign of interest in the House in this great matter is concerned—in a very few sentences ask the House at this stage to review the policy which has been, and is being, pursued in relation to this vital question of housing. The facts are quite undisputed. The housing problem at the end of the War, when the Armistice had been concluded, and just before the General Election in December, 1918, presented two quite distinct problems. One was an old problem, a problem which existed before the War, though in some ways it was intensified and its difficulty was aggravated by our War experience. I allude to the problem which is generally described as that of the slums. The official estimate then was, and I think still is, in regard to that problem that there were no less than 180,000 occupied houses which were substantially unfit for human habitation. The new problem, the problem for which the War was mainly, though, I agree, not wholly, responsible, was the failure, the necessary failure, under the conditions which prevailed while we were at war, to make good the shortage of houses. That shortage was officially estimated at 500,000. Many authorities put it higher. Some, I think, put it at 750,000, and I believe the present Paymaster-General, who was brought into the counsels of the Government shortly afterwards, put the figure as high as 1,000,000. I am quite content, for the purposes of my argument, to take it at the lowest of those three figures, namely, 500,000. The question was what was to be done. Let me say, parenthetically, and by way of preliminary, that I am not going into the question of the domestic difference which has recently arisen in the ranks of the Government as to their policy in this matter. My right hon. Friend (Dr. Addison), who I see there, and who was for some years the Minister of Health and official spokesman for their programme, after spending a brief and, I hops, an untroubled experience as Minister without Portfolio, and having been, as many of us well recollect, only a very few days ago described by the Prime Minister in terms of moving and feeling eloquence which excited the sympathy of the whole House as a man who had rendered indispensable service, and who both as a man and a Minister was felt by Government to be one of their counsellors, they could least afford to get rid of, has felt it his duty to resign. There is a cryptic allusion, in the parting letter in which the Prime Minister expresses his regret at losing this invaluable colleague, to unbusinesslike methods, or at least to methods which under new auspices were going to become more businesslike. I do not know what that means. No doubt light will be thrown upon it in the course of this discussion, and we shall be glad to hear by whose authority those unbusinesslike methods were resorted to, pursued, and persisted in.

These personal matters are, I will not say wholly irrelevant, but they are beside the serious and substantial point that I want to submit to the House. We started then with two formidable and undisputed facts. The existence of very nearly 200,000 houses which were unfit for human habitation and the necessity for making good the arrears caused, or at any rate conditioned, by the War by the provision, at the lowest estimate, of 500,000 new houses. The Government in the Session of 1919 took steps to deal with the matter in the Housing and Town Planning Act of that year, and the prospect which was then held out to us— I was not here myself at the time, but I read the Debates—by my right hon. Friend the late Minister without Portfolio (Dr. Addison) was that in consequence of the new Measures that the Government proposed something like 100,000 houses—I think that was his figure—might reasonably be expected to be provided within the first twelve months. The Act was in many ways, I say without any reserve or qualification, in my judgment an admirable Measure. It contained many excellent provisions, and was a substantial advance on any housing legislation to which Parliament in days gone by had given its assent, but from the very first it was obvious that it had certain and, as experience has shown, many serious defects and shortcomings. The machinery was cumbrous and slow.

The machinery consisted in associating the local authority with the central Government and in limiting the ultimate pecuniary liability of the local authorty to an amount which should not exceed the produce of a rate of 1d. in the pound. That, of course, in itself was a temptation to local authorities to indulge in ambitious, perhaps over-ambitious, schemes. It was also very costly, owing, in part no doubt and perhaps mainly, to the high prices which had then to be paid both for materials and for labour. I think everybody who has had any opportunity of watching the actual working of the Act will agree that it left a number of loopholes of which advantage was taken. We have that on the admission of responsible Ministers themselves. There were many loopholes for extravagant and non-remunerative expenditure. At any rate, after a very few months' experience the Government found it necessary to come to Parliament with fresh proposals. The Housing (Additional Powers) Act was passed in December the same year, and it proposed I will not say an alternative, but a supplementary method of dealing with the problem by invoking private enterprise, which was to be subsidised at certain prescribed rates from a central fund. To complete the legislative story, a year later, I think at the end of 1920, it was proposed to continue that subsidy, which was limited in point of time—and after some trouble with the House of Lords the Bill was finally passed in the course of the present Session and received the Royal Assent as lately as the first of the present month—for another year.

Let me pause at this moment to summarise the actual facts. The original proposals—I am leaving out the slumming clause for the moment—was to provide for the building of 500,000 houses. It was hoped, I think I may say that it was expected, that that provision would be made in the course of something like three years. I am not saying that there was any definite assurance given in that sense, nor could there have been; but expectations of that kind were held out. What was to be the actual cost under the Act of that year? Here I fortify myself by the figures of one of the numerous normal Budgets which have been presented to us in the course of these years. The one to which I am referring was dated 23rd October, 1919. The normal annual cost to the Exchequer of that scheme was put down at £10,000,000. In February of the present year under the stress of financial exigencies the number of 500,000 houses was cut down, I think at the instance of my right hon. Friend the late Minister without Portfolio, to 300,000, and now, in the course of the last month, we have heard from the present Minister of Health that it is to be reduced to 200,000, of which, I understand, 176,000 are to be provided by the local authorities or in conjunction with the local authorities, subject to their limit of a penny rate in the pound, and the remaining 24,000 or 25,000 by the subsidised private builder. I do not know whether we have any authoritative figure as to what the cost of the subsidy will amount to, supposing that programme be realised. I am told that it is something like £5,000,000.

That is right. That, of course, is a capital sum. The expenditure which the State will have to meet, the recurrent expenditure year after year until the loans are finally paid off for these 200,000 houses, is £10,000,000 a year. Am I right?

Therefore, we have 200,000 houses as compared with 500,000 houses in the original scheme, and the annual liability of the Exchequer will be the same for less than half the provision originally contemplated. I think I am right.

Then those are undisputed facts, and that is the situation with which we are now faced. I think everybody will agree with me that it is a very disappointing result, and it is much more disappointing, in fact, than the actual figures which I have stated to the House seem to suggest. It has always been taken as a common figure, agreed to both by Government Departments and by building experts, that the annual shortage of houses, due to the normal increase of population, requires a provision of something like 80,000 houses per year. The result is, that the new number, which Parliament is now asked to sanction and to which for the time being, at any rate, it is to limit itself, is a provision which does not overtake the normal annual deficiency which would have happened in any case in the last three years, even if we had not had the War, and the special exigencies which the War has brought about. We are, in fact, contenting ourselves with a provision which will be barely ample to meet the deficiency, year by year, due to the growth of the population apart from the special deficiencies created by the War. One cannot help contrasting these facts with the pledges, expectations and hopes that were held out at the time this Parliament was elected. I am glad to see the Prime Minister in his place. I would remind him of one or two statements of his own in the letter which he wrote to the late Lord Privy Seal, statements which were the foundation of the Coalition program and policy. The right hon. Gentleman referred especially in this matter of housing to a speech he had made in Manchester in September, 1918. I have had my memory refreshed in regard to that speech. My right hon. Friend used a phrase which has since become famous. Expressed in a terse and epigrammatic way, he said:

"You cannot maintain an A1 Empire with a C3 population."

He then proceeded to its practical application:

"The problem of housing in this country is the most urgent. We have talked about and played with it for 40 or 50 years. It has never really been taken in hand."

He added, in language more picturesque than any I have ventured to attempt to use—I speak with sincere admiration for his superior rhetorical fervour—and I have never seen a larger array of chosen metaphors in a single sentence:

"You cannot plough the waste land with writing paper, you cannot sweep away slums with paint-brushes, and you cannot bind the gaping wounds of the people with red tape."

What have we had? A mixture of red tape and red ink in fulfilment of that pledge. I have other citations here, none, I think, couched in quite the same rhetorical language, but all to the same purpose, and there is no doubt whatever that one of the most serious undertakings made, and assented to by the parties of the Coalition at that time was the one to deal promptly, effectively and expeditiously with this which was truly regarded as one of the fundamental conditions of national reconstruction. Those assurances, compared with the bald bare facts which I have been reciting to the House, show that we are no better off now with regard to the shortage that has taken place since the Armistice with the provisions of the Government than we were when the Armistice was concluded. That is my proposition. What is the reason for this gradual, progressive, but now summary curtailment of this essential provision? It is finance. It is nothing else. The need is not denied. The adequacy, or rather inadequacy, of the provision cannot be disputed. In those days, at the time of the Election of 1918, people did not talk about money at all. Vast numbers of more or less credulous and ignorant people were brought to believe, and encouraged to believe, that somewhere or other in Germany or among our enemies there was a bottomless purse from which we could draw, in the shape of indemnities or in some other way, to an infinite degree not only to make good the losses of the War but to restore our old methods of social reform. Finance was not considered. I will call the attention of the right hon. Gentleman to another of his particular phrases. I was out of Parliament at the time, but as opportunity offered I ventured to point out in 1919 how dangerous was the financial and economic course on which we had embarked. The right hon. Gentleman in a phrase, which I think it will not please him to have brought back to his recollection, spoke with disdain, and I believe, with a very large measure of applause, of

" those epileptic screamers "—

I must associate myself with it. Whether I screamed most, or whether my epilepsy was more aggravated I do not know. The right hon. Gentleman spoke of those epileptic screamers outside of whose voices he was glad to say there was no echo in this House. If the Prime Minister will refresh his recollection of his utterances, he will find it in a speech he made in October.

I am not in the least ashamed of it, I think it is a very good one, and very accurate in reference to the particular persons I had in my mind, but I can assure my right hon. Friend that is not the charge brought against him.

I see sitting next but one to the right hon. Gentleman the late Chancellor of the Exchequer who, about the same time or a little later, spoke of me personally as having been engaged in a "campaign of economic rant." I prefer the Prime Minister's remark in point of style, but in substance there is very little to choose between them. I say to the House and to all who take a real interest in this matter of whom, as I have said, I am sorry to see so few to-day, that finance lies at the very root and essence of the whole matter. Why are we unable now within three years of the conclusion of the War, in face of all these assurances and promises which were given at the time of the general election, why have we now to confess that we can make no better provision for the admitted, the deplorable, the disastrous deficiency in the housing of the people than we would have to make under normal conditions if there had been no war at all? The answer is a very simple one. I admit, to use a homely word, we are hard-up.

Just consider, if the epileptic screamers and economic ranters had been listened to in those days, how different your posi- tion would have been. During that very year, 1919, we sunk £100,000,000 of the money of the British taxpayer in Russia. During that year and the two succeeding years we sunk another £100,000,000, as was admitted here only a week ago, after every possible set-off had been allowed for, by the Secretary of State for the Colonies, in Mesopotamia and Palestine. This House this Session has passed an Estimate for £37,000,000 for expenditure in those two countries, and the Secretary of State for the Colonies, after the most optimistic Estimate that you can conceive, based, as I ventured to show the Committee of Supply in this House only a week ago, upon a sanguine, disputable, and, as I believe, unrealisable hypothesis, told us that next year, 1922–23, and probably the year after, we should be asked to furnish from the taxes of this country another £9,000,000 or £10,000,000 a year. That is the reason I do not dwell upon the details of the administration, or on extravagance in that direction. That is the reason, and I want to concentrate the attention of the House upon it, that we are now unable to fulfil the promises and assurances that were given at the General Election to secure what our people sorely needed, the first condition, as the Prime Minister has himself said of a more humane national life, the first condition of proper housing.

I cannot begin what I have to say on this subject without expressing not merely disappointment but some indignation at the absence from the House during this afternoon of so many of its Members, who, I think, ought to have shown by their presence during the Debate their real concern for the condition of large masses of the electors because of the step the Government has recently taken on questions of housing policy.

Will the right hon. Gentleman allow me to say there are only 20 Labour Members in the House?

Hon. Members, I hope, are themselves fortunate enough to have a comfortable house to live in. Many of us with some personal experience of what housing difficulties mean, and with a close personal contact with enormous numbers of wage-earners in a state of real suffering through the absence of any structure that can be reasonably called a house, cannot approach this question without feelings of real indigation at what has happened, and what must happen, during the next two or three years. If Members are impatient at my reference to a fact which they must regret as much as I do, the fact of the absence of a large number who ought to be here they should think of what the condition of a few millions of hard-working people is at this moment, in such weather in such a season as we have lived through, dragging on a miserable existence in the dirt and squalor of the slum parts of Britain. It is no affront to Members of this House to say that the two most urgent and trying problems for this country are unemployment and housing, and on each occasion which they have been under discussion in this House they have attracted far less attention than hon. Members show themselves ready to give when we are considering a comparatively trumpery matter, such as the occasion when we were discussing whether there should be some review of the allowances to Members of the House of Commons for the performance of their duties. Even on Derby Day we can get a crowded House for the consideration of that comparatively trivial question.

We can scarcely separate these two questions of housing and unemployment. A considerable number of workers who are now unemployed are faced with demands for increased rents for houses which are unfit to live in from which they cannot escape because there is no alternative or appropriate accommodation elsewhere. This is a problem very frequently associated in political discussions with heroics or with heroism. The soldiers who won the War, the officers who suffered and died, their names were very frequently interwoven with platform talk about what was going to be done to make England brighter and better, and promises which they took as being really meant were made that the Government would see that they came back to a different England than the England's shores they left for the purpose of fighting the enemy.

We have now reached a stage when the Government's conduct on the matter of housing may be regarded as the most classic instance of pledge breaking which can be adduced amongst the list of broken pledges of this Government since they assumed office after the election of 1918. Houses should have had a preference over all other building if we are to look at matters in the degree of their urgency, and not only urgency, from the standpoint of the reasonable comforts and needs of individual, but the standpoint emphasised by the Prime Minister himself, that is the health, the physique, general well-being and efficiency of the nation. If you are to look at these questions from that standpoint of the nation's need and the need of the individual, a definite preference should have been given to the building of houses, and any other kind of building operations should have been prohibited until the pressing human needs of large masses of the people have been met. Often in Debates on this question censure has been expressed upon certain trade unions or branches of trade unions because of their attitude towards the schemes of the Government. The Minister of Health will no doubt speak during the day, and I am sure he cannot be cited as one who has had cause to complain of their action. I remember how generously he expressed himself as being satisfied with the action of the trade unions in relation to this matter, but I would like him to-day to say something more as to why the Government has not tried to make more use of the guilds which have specially applied themselves to this problem of house construction.

I do not know whether it was thought that there was sufficient provision already with private contractors, or that the ordinary house constructors were equal to any needs so far as the Government schemes were concerned. So far as I have been able to judge the results of the undertakings of the Guilds, it appears that a great case can be made out for enlisting their services in the fullest possible degree in the matter of completing great housing schemes. If the Government has now to admit that it cannot complete this problem and give effect to its professions, it can be justly told that if it cannot build houses it cannot build any- thing at all, because there is nothing more urgent than the construction of the houses for which the people are still waiting. Public utterances of the Prime Minister have already been cited, but I cannot refrain from reading to the House one or two other expressions intended not merely to arrest national attention, but to be a declaration of Government policy. In his Wolverhampton speech delivered on 23rd November, 1918, the Prime Minister said:

I cannot quite understand how the Prime Minister can say that and then proceed to undo it in so short a time. It will not do for the right hon. Gentleman to use such words as those and then proceed to do the very opposite.

We are well aware of the Prime Minister's ample capacity for remaining cheerful under the most distressing circumstances, and we know how he can face it up and see it through. The Prime Minister said that 400,000 was the least number at which the Government would aim. As reported in the "Times" on 6th December, 1918, the right hon. Gentleman, in addition to this mention of number, again indulged in the usual ornate emphasis so frequently used by the Prime Minister. Let me now touch on two instances showing what it means in our big centres of population. Glasgow declares that there is in that city a shortage of 67,000 houses which are needed to meet anything like the reasonable needs of that great city. Since the Armistice it is reported from Glasgow that the number of houses built has been compara- tively small, and that in that small number several of them were only of a temporary character. Let me take the city of Manchester, one of the divisions of which I have the honour to represent in this House. In Manchester there are 16,000 houses now inhabited which have been condemned as unfit for habitation according to official decisions, and yet the people are compelled to live in them. No less than 200,000 people in that city are condemned to live under some conditions of overcrowding, and I need not tell the Prime Minister what that means in relation to health and morals, and the general standard of improvement, tone and comfort of the poor people affected. Not less than 50,000 houses are wanted there to meet the immediate needs of that city. I have this morning received a communication from that city from one well qualified to speak upon this subject because of his attachment to this problem of housing in the city of Manchester. In this statement he says:

I will leave the larger cities and touch upon what I think is a typical illustration of the position in smaller centres. I will give only one instance, because it will serve to illustrate the case of every small centre in the country. This is from a report on the Scunthorpe and Frodingham United District Council housing schemes. personnel of these staffs was drawn from ex-officers and ex-soldiers generally, men who were specially told that nothing the country could do for them when they came back would be too good. They have worked exceptionally hard, and have not sought the shelter of any of the restrictions in regard to overtime nor have they considered their personal convenience. If the Government's scheme is to be abandoned or so much modified as has boon announced most of these officers will not be required. Some little saving may be thereby effected, but what is to be saved in that form will go in the loss which, surely the Government would incur from the very fact of not retaining the services of a considerable number of these men, if not all, for a very much longer period. Many of these men have just got a month's notice. I specially ask the attention of the right hon. Gentleman to the fact that many of these men are to finish their engagement at the end of this month. That surely is not a reasonable way to treat men, many of whom gave up permanent positions when they were asked to take up this service about a couple of years ago. I know personally men who gave up permanent positions, and they cannot now return to them. Their notices, therefore, ought to be extended till very much later in the year, to September or the autumn period, when they would have a far better chance of re-employment.

This is a time of the year when in all of the public services there is practically no opportunity for the unemployed. This problem of the unemployed is bad enough already, and if the right hon. Gentleman is going to add to it he may save, but assuredly he will save less by the early dismissal or the discharge of these men than he will have to spend in compensating many of the persons in connection with the contracts that have already been entered into, and from which he cannot escape. I have here some substantial details on this question, and I would like to get the assurance from the right hon. Gentleman that he will go into these matters and see that these men are not unfairly dealt with, as they have been by receiving notice in the manner reported. We are eager to hear what has to be said for the Government. Why has there been such an indefensible change in the housing problem. The country must be anxious to know why these houses are not to be furnished to the public. We ought to have a much more full and re-assuring statement than, so far, has been given us on behalf of the Government.

I am sure the House will tender to me at once their sympathy and their indulgence. I am afraid that I am bound to trespass for some time on the kindness of the House, as I necessarily must deal, to a certain extent, with important, though, I am afraid to say, dry technical matters, in answering many of the points raised at Question Time and in correspondence. I should like to deal in the first instance with the general aspect of the question. The right hon. Gentleman the Member for Paisley (Mr. Asquith) in his speech very truly said we had two problems with which to deal—the old problem and the new problem. A great deal has been made of the extraordinarily difficult position which followed the War, and, in a time of high prices, and shortage of material, labour, and money, our not succeeding in doing more in the abolition of the evils of the housing system, a system which has existed in this country ever since I can remember. But neither the right hon. Gentleman the Member for Paisley, either as Chancellor of the Exchequer or Prime Minister, nor any other statesman at a time when building was cheap, labour abundant, and money could be procured at low rates ever contributed a penny piece from the Treasury towards dealing with the slums and overcrowding.

The hon. and gallant Member (Lieut.-Commander Kenworthy) is getting insufferable. He cannot be permitted every day, and nearly every hour of the day, to continue his interruptions. If he does, I shall have to take strong measures.

I was pointing out that it was a new principle, a new obligation, for the Government and the taxpayer to take upon their shoulders any part of this very difficult and complex problem. I want to remind the House—because I think it is essential that we should remember—that the obligation of providing houses, so far as obligation goes, has always rested, not on the Government or the Treasury, but on the local autho- rities. The right hon. Gentleman who spoke last referred to the conditions of Manchester—which I know well. But what did the Corporation of Manchester do in all the years before the War? It is a rich city, and it could have dealt with these conditions. It is unfair to come down now—

Is the right hon. Gentleman asking me to reply to him? In 1918 the Government announced a new policy and insisted on continuing that policy. I have read the Prime Minister's declaration that it was no longer a local obligation, but must be a national charge.

I think my right hon. Friend is reading a good deal more into that declaration, a good deal more into that policy than is quite fair. [HON. MEMBERS: "It is only what was said."] Let me just explain for one moment. A new policy was adopted—and rightly adopted—to deal with very exceptional circumstances, and the difficulties which arose owing to the War. But if hon. Members will look at the Housing Act of 1919 they will see in it and in the Regulations following that this exceptional effort was supposed to close by 1922. It was not the intention—I am coming to the execution in a moment—of the Government in regard to the scheme that it was to be put forward for all time. Never, so far as I can ascertain, was that in the minds of anybody in the Government.

I cannot quite agree with the figures put forward by the right hon. Gentleman the Member for Paisley. He said that the working-class housing shortage since the War amounted to 500,000 houses. I do not know where he derived that figure. It does not agree with any figure I have myself been able to obtain. The Report to which he referred dealt with England, Scotland, Wales, and Ireland. So far as I can ascertain—and nothing is more difficult to ascertain—what the housing shortage is depends upon the temperament of the people who are making out the needs. There was really no scientific basis for it. The best figure I have been able to obtain of the shortage of working-class houses since 1914 puts it at about 300,000. You have to take from that something like 50,000 built during the War, and that makes these 500,000 houses of the right hon. Gentleman opposite come down to about 250,000. If you take from that 210,000 houses which are going to be built, we see where we are. The hiatus in all quarters and from all causes is not as great as the right hon. Gentleman estimated.

5.0 P.M.

I would like to point out this—and it is very important—as to why we have not made up the shortage. The pre-War shortage could not have been made up under any conceivable circumstances. It is not a question of energy or money. The limiting factor in house construction has been materials and labour. The right hon. Gentleman the Member for Miles Platting waxed very eloquent and said—and quite truly—that in some of my schemes I have been helped by the trade unions. When he says that I feel in duty bound to point out that the reason we have made so little progress with housing has been the extraordinary low output of the building industry. The right hon. Gentleman and his friends cannot openly deny. Because we are getting to-day a very large increase of output—I do not want to trouble the House with too many figures—from what we were getting twelve months ago, no one connected with the building industry can honestly and fairly stand up in this House—I will not go into motives—and state as a fact that building labour has been giving anything approximating its pre-War output on these housing schemes which the right hon. Gentleman says are so necessary, so vital, so important to the working-class community, and so necessary to the health of this country. One of the factors which render these schemes so uneconomical is the enormously high cost of labour. You cannot get away from it. Nobody can blink the fact. I may be told that builders have made great profits. So they have. I may be told the material makers have obtained large profits. Yes, but they do not accuse the Government of breach of faith, and come here and say that they want cheap houses for the working-classes. I am not attributing blame to anybody. I am not one of those who believe that working-men alone should make sacrifices. I am not speaking in that sense, but I do say, and I am entitled to say, when we are asked why we have to stop work on this scheme, which has proved so infinitely more expensive than was anticipated when the scheme was started—I do say that one of the great factors which has contributed to the increased cost has been the continued rise in building labour wages, and the lowness of output—far below that which anyone could have anticipated in basing any estimates on pre-War conditions.

You can base your wages on what you like. I do not say that labour engaged in building houses must necessarily make sacrifices for other working men, but it is no use coming here and asking us why we cannot go on building houses at a perpetual loss, and saying that rents are so high that the people cannot live in the houses, when the people with whom you are most closely associated and most intimate are largely responsible for the economic results which have been obtained. You cannot have your cake and eat it.

To pass for a moment from that subject, I would like to sympathise with the right hon. Member for Miles Platting in that I am in the. same position that he was in having to address a small House; but I would point out that there were only 12 members of his party who took the trouble to come down to listen to the eloquent speech he made. After all, I am afraid the members of his party are human beings. [An HON. MEMBER: "What about your own side?"] They are not denouncing us.

I am afraid that it is not. The right hon. Gentleman made some interesting statements about Manchester, and I do not doubt that Manchester, like most large cities, requires a great deal to be done so far as housing is concerned. But there again, it is only fair to point out that the horrors of which he spoke were due to pre-War conditions. I do not say it excuses their continued existence, and I do not say they ought not to be dealt with, but it is scarcely fair to accuse the Government of grave dereliction of duty that they have not been able to solve the question of slums which has remained unsolved all these years. I had a deputation from the Manchester Corporation to see me on the housing problem, and they informed me that they required 3,000 houses a year for three years. That was their description of their needs. That does not correspond with the figure which the right hon. Gentleman has given, and I may say generally that, ever since I took office, one of my difficulties has been the very varying account of needs I have had from the localities. The Chairman of a Housing Committee, full of enthusiasm, and the medical officer of health come and talk to me about the vast number of houses required, and the Chairman of the Finance Committee and other officers of the Corporation assure me that if you build these houses there is not the slightest likelihood of their ever being let.

I wish to make this point clear. I understand the 3,000 houses per year to be the normal number required, altogether apart from the total I gave as representing arrears.

That was not my information. A number of members of the Corporation do not agree at all with the chairman of the housing committee in the demands he put forward. Our needs are very much what we want to make them. For instance, possibly we should all like to live in a very much better house than we have got. Therefore, when trade is good, and wages are High, people apply in large numbers for better houses. There has been a trade depression, and people who entered themselves as applicants for these houses, are now not so anxious to take them. Unfortunately, a great many cannot afford to take them. Would it be wise, at a moment when the cost of building is highest, to go on building a number of houses to stand empty? Surely it would neither help the housing problem nor be good economy.

The right hon. Gentleman said that the Government was giving up the whole of its housing proposals. The Government is doing nothing of the kind. It is a very curious thing that, on the Report stage of my Estimates, I adumbrated the housing position which I had inherited at the moment. I said then that, under an arrangement made by my predecessor with the then Chancellor of the Exchequer, the housing scheme had been reduced to between 200,000 and 300,000 houses; that I was looking into the question of rationing, which would naturally follow, and was bound to follow, that reduction; that I could not commit myself to any figure, but that, in view of the heavy burden on the Exchequer, the commitments would have to be cut down. The curious thing is that that policy I adumbrated went through this House without a division or a challenge. What has happened since then? I will take these 200,000 to 300,000 houses. I have been looking at the correspondence at that time between my right hon. Friend and the Lord Privy Seal. There were 50,000 houses then allocated for the builders' subsidy, 200,000 houses for local authorities, and there was an item of between 40,000 and 50,000 houses dealing with slums. There was some argument as to whether the whole 50,000 houses would or would not be used for the builders' subsidy, and there was a kind of agreement that a balance of 10,000 or 15,000 might be transferred from that account to the local authorities' account, bringing it up to, say, 215,000 houses.

What has happened? In the case of the builders' subsidy, the figure has been diminished from 50,000, perhaps, to about 30,000. The 200,000 for local authorities have come down to 176,000. It may be a little more or less—perhaps a question of between 20,000 and 25,000 houses. Yet, when I made the announcement, not a word was said; there was no challenge or charge. The housing problem has grown infinitely more expensive than anybody ever anticipated. I am not going to throw stones at the former administration. We have all had great difficulties in estimating anything. Private people, business people, and Governments have been living in a time of unprecedented fluctuation. We have all had to adopt the best estimates we could obtain at the time, and have all had to work under great difficulties. The fact remains that we have now a permanent burden for 60 years of £10,000,000 a year on our taxes in order to provide these houses. When the right hon. Member for Paisley says we have spent £100,000,000 in Russia, and £100,000,000 in Mesopotamia—Yes, but I say we have incurred a commitment of £600,000,000 to provide these houses. That is not an insignificant amount. It is not trifling with the question. It is an enormous, a laudable, and an unprecedented contribution from the Exchequer of the taxpayers' money. We say now that we are crying a halt. We are endeavouring to review the situation at a time—and I want the House particularly to note this—at a time when sufficient contracts have been approved to give occupation for at least 18 months to the whole of the building facilities of the country. The approval of more contracts and tenders would not provide in the next 18 months any appreciably increased number of new houses. Is not that a time to halt, to review, and to see whether this is the only and the best method by which we can proceed?

May I ask the right hon. Gentleman to clear up one point? He said that it meant a sum of £600,000,000. I think his announcement was that 176,000 houses had been built, at an average cost of £1,000 each. That comes to £176,000,000. How does the right hon. Gentleman arrive at a total of £600,000,000?

There is a loss of £10,000,000 a year for 60 years. It will not be quite £600,000,000. As the hon. Member knows, some of these loans are of shorter date than others, and may be redeemed earlier. I am not going into details, but, roughly, it may be estimated that you would spend £10,000,000 a year for 60 years. That is not capital.

Yes. That is an estimate. I cannot exactly state what the houses will cost, and it is still more difficult to ascertain what rents will finally be obtained. It is possible that we may have to take even lower values for the houses to be let, so that you are on this very difficult quagmire. The mistake, if any mistake has been made, has been that too many contracts have been taken at high prices which cannot be carried out. There are 50,000 houses for which contracts have been signed, and which have not been begun even yet. If those contracts had been delayed, I do not think we should have got the houses any later, but they would certainly have cost less money. It is no more to the interest of the Labour party than to the interest of anyone else that dear houses should be built for anyone. They gain nothing by it. They are taxpayers just as much as anyone else. The burden of taxation is pressing very hardly upon them, and the necessity for raising that money is another burden on the very people whom we are trying to help. We are not hostile in this matter. The ratepayer and taxpayer, the working man and others, are not formed up as hostile armies trying to extract advantages out of each other. We are one nation and one community bearing an equal burden and equally interested in getting the best value for our money. That is what I and the Government are trying to achieve, and I am sure I shall have the sympathy of hon. Members opposite in trying to achieve it. We have enough contracts to employ materials and labour for a long time ahead. Why should I go on approving tenders and contracts at present prices when I see prices coming down every day, and when I know that those who are holding up materials will have to 1st them go when they have no more contracts? Why should I let them hold up the ring against me and against the working classes —against the people whom we wish to help? That is not business for anyone; it is putting money into the hands of a number of people who have already dipped their hands quite deeply enough into the pocket of the taxpayer.

I have just taken charge of the business end of it. What we are proposing is a halt in carrying out certain schemes. It does not say that the Government are never going to consider housing any more, that they are not going to explore as to whether there are not better, cheaper and improved methods. It is not that neither the Prime Minister nor I nor any of us believe any longer in the causes for which we have fought all our lives. In one or two cases—not in this House, but outside—I have noticed that I have been represented as one who seems to be quite uninterested and hardhearted and indifferent in this matter. I very much resent that imputation. I have seen it stated that as an industrial magnate—which I have never been—I have no interest in these matters and do not care what kind of houses are built. I should like to say that all the concerns with which I have ever been connected have always taken a very lively interest in housing their workpeople at reasonable rents and under good conditions, and if that duty were more generally observed we should have much less trouble with regard to housing. I do not think it is fair that people should create industries, which attract large bodies of people into overcrowded areas, without making any provision for them, throwing on either the taxpayer or the ratepayer the whole charge when really it is part of their working expenses and is necessary for them to earn a profit. I hold that view with considerable strength, and the firms with which I have been connected have always tried to live up to it.

Can the right hon. Gentleman tell us from his own personal experience whether it is possible for employers to act on those lines as long as the Government's housing scheme is in existence—whether that scheme does not render it absolutely impossible for employers, with the best will in the world, to provide proper housing accommodation for their workpeople?

I should not like to give an off-hand opinion on that, but I do not see why the one need necessarily interfere with the other. It is impossible for an employer to calculate on getting an economic value under those conditions. Those employers who have provided houses for their workpeople have never intended or thought of getting an economic rent.

When I took the matter over I found myself faced with a demand, universally endorsed, for a reduction of Government expenditure in all Departments. That is a very difficult thing to bring about. Every Department thinks that it is the most important one, and that is why I claimed the sympathy of the House when I began. I should like to examine the financial aspects of this question. If we had made no cut in housing, what would have been the position in the 1922–23 Estimates? We should have had to provide, for local authorities and public utility societies, £10,500,000, and for private builders' subsidies £3,500,000, or a total of £14,000,000, against £10,100,000 in 1921–22. So far from making a reduction of 20 per cent., my Estimates next year, on these items alone, would have been up by nearly £4,000,000. As it is, I hope to make a reduction of £600,000 on this year's Estimates, and the saving I have effected is £4,500,000. That is a not inconsiderable figure in these days of financial stringency. The financial solvency of the nation is the primary and fundamental consideration, and, however much our hearts make us anxious to improve conditions, unless we bear that in mind, and allow our heads to play some part, we shall finally land ourselves in a very much worse position than that in which we now are. It would be infinitely more pleasant and easy for me to detail to the House to-day great schemes under which everyone would have magnificent houses, with hot and cold water, multiple cookers, and every luxury that one can conceive. It would be delightful for me to think that I was the Minister who could sweep away at a stroke of the wand all slums and all those horrible insanitary conditions which weigh upon us like an incubus. It would give me much greater satisfaction to dig spurs into the local authorities in order to hasten them, and not to retard them. It would be a more grateful and popular and pleasing task; but I should not be doing my duty either to the House or to the country if I advocated such a course. The result would be increased taxation, increased unemployment, greater depression of trade, greater financial difficulties than we have at the present time. We have to borrow in order to carry on; we cannot even pay our way out of taxation.

I say that, under those conditions, to adopt any policy except one of judicious retrenchment would be to add to the disaster. You might build houses, but your people would have to emigrate to find employment to pay rent. You might provide better houses than people have at present, but you would not be able to keep them because people could not afford them. It is essentially necessary at this time to go more slowly, to watch our way warily, and to save every penny we can. That brings me to a remark of the right hon. Gentleman, the Member for Miles Platting (Mr. Clynes) about regional organisation. I do not wish to discuss that matter at any length; I have already gone fully into it. I am making reductions because I think that the staffs are no longer required for the work in hand. I cannot bring myself, however hard some cases may be—and I admit that some are hard—to spend public money in paying salaries to people for whom I have no work. I do not think that that is a principle which any Minister should be pressed to apply. These gentlemen were engaged as temporary officers on a month's notice. It may have been generally thought, and they may have thought, that this work would continue longer, but if you engage a man temporarily on a month's notice, and the time arrives when you have no more work for him, I cannot see any injustice in declining to extend the period of notice, and to pay him sums for which you have actually no justification, because it is a hard case. Life is full of hard cases. The people who have to find the money to pay the officials are also in difficulties, and, therefore, I say, let them stick to the bargain which they made freely of their own choice, and let us cut down the staffs to the work that is required, and pay them off on the terms on which they were engaged.

I should like to read to the Committee one letter from many which I have received from local authorities indicating their attitude on some of these housing questions. I have been very much struck, as I have said, by local authorities asking me whether I could relieve them of the obligation to build. This is one of many letters which I have received: possession of a fluid balance of something like 10,000 to 12,000 houses to deal with. Cases have been raised of local authorities who have already laid in advance roads, sewers and things of that kind. The number is not very great. I believe something like 15,000 houses would cover the sites for which preparation has already been made, and I am not unhopeful that where local authorities are anxious to complete schemes, I shall be able with the amount at my disposal or with a small extension, which no doubt will be agreed to, to ensure that any scheme which local authorities want to proceed with, where the roads and sewers are in existence, will be rounded off or completed, and that will get over a considerable number of difficulties.

From this I would go on to the question of land. There will be some surplus land which local authorities have acquired, and those cases will have to be considered. In some cases, perhaps, they will wish to sell. In some cases the sites are bound to be not so suitable as they were thought to be. In some cases the sites ought to be held for future housing development; whether by local authorities, by private builders, or by public utility societies, are all questions to be considered in a practical and businesslike way. I am not going to rush local authorities and insist on their disposing of sites in a panic-stricken way. But no loss is going to fall on the local authorities beyond the penny rate for any work they have done, or any expenditure they have incurred with the sanction of the Ministry. I want to remove that fear once and for all. Such an acute student of the housing question and master of the English language as Mr. Maurice Hewlett, writing to the "Westminster Gazette," has twice failed to understand my declaration that local authorities will not be jeopardised or incur obligations because the Ministry of Health ask them to abandon or postpone a scheme. I propose to be generous, frank, and fair with the local authorities. I have already given instructions that they shall be treated in that spirit. A great deal of work and energy and enthusiasm has been put into these schemes, and that work will not be wasted. It will prove most fruitful and useful. No work is ever wasted for the social betterment of the country. You may not always be able immediately to proceed on the lines you want, but there it is, and you can take advantage of it. A great deal has been learned in these matters, and all that is not going to be thrown on the scrap heap.

The cost of sites required for housing purposes which cannot be utilised, or fully utilised, by the local authority for housing, including legal and other expenses) where they have been incurred with the Minister's approval, will be charged to the Assisted Housing Scheme Account. Similarly, with regard to the cost of development, expenditure incurred with the Ministry's approval on items connected with the laying-out of sites, that is, roads and sewers, will rank for financial assistance exactly as it would have done if it had been found possible to carry out the scheme. All reasonable expenditure incurred in the preparation of plans and specifications, and payments for other professional purposes in connection with schemes which cannot proceed will be recognised as ranking for financial assistance. An agreement has been reached with the Royal Institute of British Architects and the Society of Architects as to the appropriate scale of architects' charges in such cases, and local authorities have been notified of this. Generally, all cases in which local authorities have incurred expenditure in connection with housing schemes which have not materialised, will be considered on their merits, and I shall take steps to secure that a local authority is not required to suffer financial hardship in consequence of the abandonment of a scheme.

I should like to say a word about the builders' subsidy. It was introduced for the purpose of reviving public enterprise. The idea, I think, was very sound, but it was not at all an easy scheme to work, that is to say, it is not at all easy to make certain that the money you are spending is being spent on the purpose you meant it for—the provision of houses for the working classes. I have had some examination made into the subsidy question, and I have found, not unnaturally, that a very considerable number of dwellings have been put up with the subsidy which really do not cover what I think Parliament intended it for. Week-end bungalows, chauffeurs' cottages, and gamekeepers' houses were surely not meant to be paid for by subsidies from the taxpayer. I was engaged in framing Regulations to stop some of this when the decision was reached to suspend the builders' subsidy. Only about a third of the subsidy houses have been occupied by what I may call the working classes, and two-thirds really have gone in other directions. Hon. Members opposite have never been keen on the subsidy question. I have heard criticisms from those Benches on former occasions as to the want of control over the prices charged, and I stated I was taking that into consideration. But the subsidy may have fulfilled the purpose of supplying a certain number of houses at a period when we wanted to get everyone in. At present I think the need for its continuance has very much diminished. We shall build altogether, I should think, somewhere between 25,000 and 30,000 houses under the subsidy. [ Interruption. ] It is very difficult to get the information. A great many of them are houses of the middle-class type, built by people for themselves. The difficulty of a subsidy scheme is that with houses scattered here and there it is much more difficult to control than local authorities.

You have intimated that there are 30,000 of these houses under that subsidy. You have also intimated that there is not more than a third of the working classes, so far as you know, in those houses, in addition to which there are week-end bungalows and all manner of other things. It follows then that not more than 10,000 working-class people have been housed under the subsidy. Is that what you mean?

No, I do not think that quite follows. I should not like to put it as definitely as that. I was trying to point out that the 30,000 houses are not all built yet. There are only 18,000 built. I think there will be 30,000 altogether when the subsidy is completed. I cannot tell at present what the balance is, because under the subsidy as it is worked, when the plans were passed, we heard nothing more about it. It is extremely difficult to ascertain how many houses are completed and occupied without investigation. It has taken me a long time to get together some information.

Before the Government paid any subsidy to any individual they must have been assured what the circum- stances were for which they paid the subsidy, and you have intimated that you found bungalows and week-end cottages coming under the subsidy. I want to know how many subsidies you paid for these week-end bungalows and such like, the details of which must be in your Department.

May I amplify what the right hon. Gentleman opposite has said? I know of a case in my own county where the local authorities wrote to the Ministry of Health to ask whether it was proper to make payment in a case where a man had built two of these small houses, one to house his butler in and the other to house his valet in. The answer came back that they were obliged to pay, although they objected to it.

As a matter of fact, the subsidy was paid on houses of a certain cubic capacity, and not on houses to be used for a certain purpose, and therefore the Ministry had no knowledge of the purpose of the house for which the local authorities gave a certificate. I went into the whole question, and I have only recently got some information, but I have no complete return, and therefore I should not like to say, although I find on the information I have that these are about the proportions, that those proportions would hold good over the whole number of houses.

I think I am correct in saying that only 30,000 houses will be built under the subsidy. Not more than a third of those, so far as you know, will have bonâ fide working-class occupiers, and therefore the subsidy has gone to two-thirds of the people for whom it was never intended.

I should not like to put it that way. I do not think it was ever stated exactly that these houses were intended for the working classes. A great many people have built such houses; 30,000 will be the total number, of which, I think, 18,000 have been completed. I should not like the House to have the idea that these houses are all used for luxury purposes or for seaside bungalows. That is not the case. I only say that there have been a considerable number of these cases, and only about two-thirds have been used for working-class houses. A great many have been built by ex-officers, and why should they not have them? I want to put what the exact position now is, because I have been asked a lot of questions on the matter of the housing subsidy. Hon. Members are always asking questions and writing letters about what will happen under the recent alterations. This is the position at present. Under the recent Act, where construction was not begun before 1st July, the certificate automatically lapses. The local authority have been instructed to report on the cases thus outstanding. If no change of policy had been made, a new certificate would have had to be applied for if any holder of certificate A wanted to proceed. The effect of the decision of the Government is as follows. Any person who holds Certificate A and desires to proceed must make further application and must actually commence building on or before 25th August. Any such person will be compelled to prove to the satisfaction of the local authority that he had entered into actual commitments before 15th July. The same condition is laid down for other persons who desire to build under subsidy and who have not gone to the length of obtaining Certificate A. It is my intention to interpret the term " Commitment " in a generous and liberal spirit. Generally, any expenditure incurred in anticipation of subsidy will be regarded as a commitment, such as the purchase of land or any other contractual obligation involving financial liability. I am arranging for this to be done through the local authorities, and am urging them to ensure that no time is lost in dealing with cases submitted to them. If they are in doubt as to whether a particular case is covered by their instructions or on any other point, they are to refer the matter promptly to the Ministry, when it will be settled without avoidable delay I am setting up a small organisation at the Ministry in order to speed up this particular work. As the time expires on the 25th August it would not be fair to hold up people for weeks before they get an answer as to where they are. In this way I hope we shall deal without hardship with all these cases, and that we shall succeed in avoiding any persons feeling aggrieved or having any serious loss.

I want to say something on the question of slums. Slums constitute, perhaps, the most urgent housing question. Possibly we might have done better if we had begun at that end rather than devoting ourselves to so much new construction. There is more than one way of dealing with this question. We hear read great lists of houses condemned as unfit for human habitation. Medical officers of health and architectural experts will tell you that there is no possible method of dealing with these buildings except pulling them down and building somewhere else. I am a little sceptical of all these expert gentlemen. My experience has been that your expert gentleman, quite rightly, will give you the best and most perfect scheme which he can devise, and possibly also the most expensive; but if you tell him that the money is not there he will devise a scheme which may not be so perfect, but which will largely suit the object you have in view, and that is, to diminish insanitary conditions. I have pointed out that fact to deputations from one or two large local authorities. We have a rather evil tendency in this country, and that is, because we cannot get the ideally best to do nothing. That circumstance does not affect housing only, but many other social problems. I am very anxious that we should not adopt the policy of doing nothing because we cannot get the ideally best. If we cannot clear the slum areas and rebuild because we have not the funds, do not let us debar ourselves from improving what may be improved until we can get the best. Do not let us sit in a state of inactivity because the experts tell us that this and that cannot be done. Let us go round and exercise common sense and make them do what we want them to do. That is why I have been so anxious to make a start.

The start which I propose seems moderate. It is moderate, but it is not quite as moderate as it looks. £200,000 a year as a capital sum would be a very small amount, but £200,000 a year as the difference between what a local authority would obtain and what a local authority would spend, represents a capital sum of between £4,000,000 and £5,000,000. That is quite inadequate to deal with the slum problem in this country; but I want to make a beginning. I know of cases in which I can make a beginning in London. The County Council of London have before them what has been a disgrace to this capital city for generations, and it is an absolute disgrace that it should be allowed to exist for another week. I want to make a start, and I am certain that if you do make a start, and if you can show that you are doing sensible work, with good results, the force of public opinion will compel more money to be spent on this object. This is not the end, but the beginning; the beginning of a most important survey. Nobody can be Minister of Health, interested as he must be in every direction in health service, without realising the terrible handicap of housing conditions. If we are going to simply fold our hands and sit down and say that there is nothing more doing, then the housing conditions in this country will be intolerable. If I advocated that policy I would be the last person to stand here and expect to be treated as a Minister of Health with any authority. I am anxious to do what we can in the most economical circumstances. I feel certain that we can achieve those results, but we shall not achieve them by recriminations and abuse. We shall not build houses by perorations, however eloquent.

When I say that no peroration will build houses I mean that no amount of good intentions, however warm one's feelings may be, and however one may desire to do something, will get over the practical difficulties with which we have to contend. If hon. Gentlemen opposite were the Government they would be in exactly the same difficulty in which we stand. Neither the right hon. Member for Paisley nor the right hon. Member for Miles Platting has given us one suggestion as to what they would do under similar circumstances. They see that there is an economic difficulty, but they do not recommend that we should increase the expenditure. The right hon. Member for Paisley asked why we did not spend the money from somewhere else. What is the good of saying that? That is not very helpful. What would hon. Members opposite do in similar circumstances?

The hon. Member is anxious to undertake these duties. No suggestion was made in the speeches that have been delivered, but I hope that my hon. Friend, with his great common sense, will make a suggestion.

I told you two years ago to stop your profligate expenditure and to spend the money on houses. That was when you should have listened to me, and not when you have made a mess of it.

I am afraid that will not help me now. I am very desirous of obtaining any useful and helpful suggestions. A Committee has been sitting, presided over by the hon. Member for North West Derbyshire (Mr. Holmes), and I intend to circulate the very valuable report they have made. Their recommendations are most helpful. Some of them I anticipated. I am very much concerned over the whole position, as indeed we all must be. It is no use building garden cities for an insolvent people.

It is no use providing houses at rents which we are assured by hon. Members opposite the workingmen cannot afford to pay. Nothing but harm can be done if we overload the country by taxation, which is already so heavy. It increases the depression in trade and it diminishes our capacity to recover after the Great War. On those lines you will produce not benefit, but greater harm. While no one regrets more than I do the financial position, not of our making altogether. [HON. MEMBERS: "Oh!"] Not of our making. A great deal has happened in the last 12 months which has affected both the revenue and the expenditure of the country most seriously. Continual industrial disputes and stoppages sap the life blood of the country. You cannot have your cake and eat it. There are not two monies in the country.

The people who work the least or who do not work at all have the best houses.

That is a very interesting but a very irrelevant observation. Even the hon. Member cannot produce two monies, because there is only one money. Money is spent in certain directions. Industrial disputes reduce your revenue and increase your expenditure.

You want to keep the people in the slums. You go and live there and see how you would like it.

I am not angry. If you were to live in a one-room tenement, you would get angry.

It is true, however unpleasant it may be, that if you have industrial strife and stoppages—and the hon. Member cannot deny it—you paralyse industry and trade, and that will not help a solution of the housing question. Much has happened in the last 12 months which has rendered it more difficult and almost impossible for the Government be adopt any course other than the course which it has adopted. The course which we propose will not prevent houses being built and will not affect, ultimately, the number of houses to be erected; but it will give time for things to straighten out, and time for the markets to stabilise themselves, so that we may see where we are, and then we shall secure the one thing that we wish, and that is a plentiful supply of cheap houses for the people of this country.

6.0 P.M.

At the beginning of this year the right hon. Member for Shore-ditch (Dr. Addison) asked me to take the chair of a Committee which he was appointing, the terms of reference being "to inquire and report as to the reasons for the present high cost of building working-class dwellings, and to make recommendations as to any practical measures for reducing the cost." This Committee has met during the whole of this year, and a Report which was signed about a fortnight ago has now been printed. We found to begin with that while no building was taking place during the War for obvious reasons, steps had been taken to prepare the plans for post-War action, and a Report was issued by the Housing Panel of the Ministry of Reconstruction dealing mainly with questions of policy, but emphasising the importance of a good standard of houses, and the limitation of density of 12 houses to the acre. The technical side of the matter was examined exhaustively by a Committee of which the present Paymaster-General was the chairman, and its Report, dated October, 1918, was taken as a general guide in drawing up a manual for the preparation of State-aided housing schemes issued by the Ministry of Health early in 1919 for the assistance of local authorities.

In November, 1918, a General Election commenced, and probably every candidate of every party promised immediate attention to the housing question. No doubt there were other issues at the election which caught the popular fancy —making Germany pay, hanging the Kaiser, and the like—but probably in the hearts of the people of this country no desire was stronger than that whatever Government came into power it should tackle the housing problem at once and solve it, and if a Labour Government had been returned instead of the present Government, they would have had to deal with the matter, and in doing so they would have had the unanimous support of the whole House, because every candidate of every party had pledged himself on the point. So when the Government brought in the Housing and Town Planning Bill of 1919, it was passed with general consent. There was no Division on either the Second or Third Reading, and there were only two or three Divisions on the Report stage, and these were on minor Amendments for the purpose of improving and extending the Bill.

The salient features of the Bill were that it transformed the optional powers of local authorities to provide houses into an obligation to see that provision was made for housing the whole of the working classes living in their district, and it limited their liability to the produce of 1d. rate, guaranteeing that any additional deficit would be met by the State. An immediate demand for a very large number of houses was thereby assured, while at the same time the local authorities from whom the demand was to come were free from all direct financial responsibility except for a negligible amount. This policy which emanated at first from Sir Auckland Geddes, which was adopted by the right hon. Gentleman the Member for Shoreditch (Dr. Addison) when he succeeded our present Ambassador to America, which was adopted by the Cabinet and the House, and for which we are all responsible, has had a considerable effect on the cost of building workmen's houses.

Local authorities having a limited liability had no direct incentive to economy. They employed architects, surveyors, contractors, and all these pressed upon them an improved standard. They asked the local authorities: "Why should you trouble? You are only liable for the produce of a penny rate, and the State has to pay the rest." The result was the Ministry of Health had to set up a huge organisation, which has cost the State a great deal of money, for the protection of the taxpayer against extravagant schemes, the creation of the local authorities. Besides that, the result of having to set up this Department of the Ministry of Health, to have all local schemes submitted to them, the result of the Ministry of Health having to hold the schemes up, sometimes for months at a time, because they were considered extravagant, was the prevention of houses being built, with the result of increased financial cost. Delaying housing only means increased cost, both in interest and other charges. One has only to look at the figures in connection with the big hall which is being erected on the other side of the river Thames at the present time to know how enormously cost is increased by delay in building.

It is urged by many that if the local authorities' liability had not been limited to a penny rate we should not have got houses. I want to differ from that contention. At the General Election every candidate pledged himself to housing, because he knew that he had no chance of being returned to this House unless he did so. It was the uppermost desire in the minds of the people of this country. There was hardly a family in the land that was not affected by one member or another in reference to this housing question. The General Election was the first election which had been held in this country for many years, all elections being stopped during the War. The first local election that took place was the London County Council election in March, 1919. After that there were various elections in other parts of the country. When those elections were held there was no need to make the housing question an issue at those elections the Government had already announced its policy, and had already committed itself to the penny rate, but if it had not done that, if it had said, "The local authorities and the State will share in the expenses of this scheme, the State bearing the greater share, but the local authorities still bearing a certain proportion of the cost of housing," the candidates at each of the elections for the local authorities would have pledged themselves to houses, and if they had not been prepared to pledge themselves they would not have been returned. So that you were bound to get the local authority in every part of the country prepared to carry out housing schemes and to agree to schemes by which financial responsibility rested, not only on the State, but also on the local authority.

The policy adopted has added to the cost of houses and the provision of such houses has now to be retarded owing to the cost. It is not, I think, unreasonable to suggest that if a wiser financial policy had been adopted with community of interest as regards economy between the State and the local authority, we should have obtained just as many houses at a quicker rate, and the necessity for the present drastic step would not have arisen. But the financial policy alone does not account for the present high cost of building. The Government housing scheme endeavoured to provide houses of a different and better class than were formerly usual, by unaccustomed means, at a rate hitherto unobtained, and at a time when the resources of the building industry were at a very low ebb. Men engaged in the building industry had during the War gone into other trades. Many of the old operatives in the building industry were still in the Army when this scheme started. The official figures show that in July, 1914, there were 423,000 men employed in the building industry, while in January, 1920, there were only 324,000, which was a decrease of nearly 25 per cent. Beyond that decrease there was a great shortage of materials, and there were great difficulties with regard to transport. In addition, at the conclusion of the Armistice there was an enormous demand for building materials and labour by the industrial companies and firms in the country for carrying out repairs which had been deferred during the War, for converting the factories from war purposes to peace purposes, and for carrying out new work which had been left in abeyance during the War period.

Here were all the elements of high cost, fewer men than ever in the building industry, shortage of materials, difficulties of transport, and at that moment, with all those elements of high cost, 1,250 different local authorities entered into contracts for the erection of 170,000 houses at a cost approximately of £170,000,000. Impelled to undertake this work, and urged to the greatest acceleration, local authorities were forced to enter into contracts with a class of builder who had had little experience of that kind of work, who had no desire to undertake it, and who could command higher prices, as the demand for houses ever increased. He would not enter into contracts which did not provide automatically for increases in the cost of materials and rates of wages. The cost of materials continued to increase with the demand, and the rates of wages continued to rise. The builder was not affected; he could not be expected to put up a great resistance. The local authority was not affected, because its liability under the Government scheme was the produce of a penny rate. The only protection against high prices and extravagance was represented by the Ministry of Health, whose chief object was to obtain houses in accordance with the Government policy and public opinion. I have endeavoured to show that the high cost of building was due to two causes. It was due first to the unwise financial policy of the Government, and second to the fact that the demand for materials and labour in the building industry was so greatly beyond the supply. In order that we may avoid a similar state of things in the future, and may provide houses on sound economic lines, it is necessary for us to examine the effect of the excessive demand over supply.

The shortage of materials can be left to right itself. A number of the materials used in the building industry were not produced during the War in large quantities. Bricks, for example, were not wanted particularly for war purposes But you always find—it is a very obvious thing—that when there is a demand for materials people are always prepared to start businesses to make them. Therefore, by the ordinary means, the supply of materials will right itself. In fact it is righting itself at the present time. But the point we want to inquire into in order that we may safeguard ourselves in future is to what extent is the high cost of building due to the increased profits taken by employers or to increased wages and decreased output by the operatives. There are two ways in which the builders have been able to increase their profits upon the buildings which they have erected. The first has been in an indirect way, that is, from overhead charges—the amount allowed for overhead charges. The houses being built are in the main being built on the cost-plus-profit basis. The cost includes the money allowed for overhead charges. Overhead charges are much higher since the War than they were before. The builder has to pay higher salaries and higher insurance premiums, and he has had a reduction in the hours of work of his men from an average of 51 hours to an average of 44 hours per week. That has meant that he has had to spread his overhead charges over a shorter productive period per week. In addition to that, there were other elements which, while they cannot be classified as overhead charges, nevertheless affected the amount of tenders. There were the uncertainty of a supply of skilled labour, the uncertainty of output, the difficulty in obtaining materials owing to the shortage, and transport difficulties.

It was natural and almost inevitable that builders should take steps adequately to protect themselves against all these contingencies, but it must be remembered that all post-War schemes were at least 200 per cent. above pre-War schemes, and, therefore, the amount available for overhead charges, by adding the same percentage to the cost, was proportionately greater. There is no doubt that those builders who added a higher percentage to the cost than in the pre-War days unnecessarily provided for these contingencies and thereby gave to themselves an unnecessary indirect profit. With regard to profit, it is equally certain—in fact it would be unnatural and unprecedented were it not the case—that the builders have taken advantage of the circum- stances and have taken for themselves increased profits. But I am bound to add this: I have found no case of what may be called profiteering, and while increased profits and increased overhead charges have added to the cost of building, there has been no evidence of what one might call wanton overcharging. The remedy in the case of the builders is that of securing a restoration of normal competitive conditions as soon as possible. To this end, subject always to the interests of public health, it is a matter for consideration whether local authorities should not refrain from letting contracts in areas where the building resources in that area are already fully occupied and where consequently the cost of building may tend unduly to increase.

Let me turn to the labour side and examine the extent to which labour has been responsible for increasing the cost of workmen's houses. I do not propose to deal with indirect labour, that is, the labour employed in making materials or in transport. To the workmen directly engaged in the building industry higher wages, of course, have been paid. The demand has arisen mainly from the necessity of the workman meeting the increased cost of living, and there is no evidence whatever that the operatives in the building industry have obtained increases which were greater than or even as much as in many other trades. But it is clear that there has been another more important contributory factor, and that is the diminution of output, which has been serious since 1914. Although output is now improving, it is still far below the standard of that time. My committee examined this matter with the greatest care. We heard both sides. We were, in fact, impressed with the moderation and the fairness of the labour views expressed. The delinquencies of labour are urged far more frequently and forcibly than those of the suppliers of material and of the employers, but probably the attitude of labour has been forced upon them by bitter experiences in the past and by conditions over which they have had no control. The main reasons for the decreased output appear to be these—(1) the scarcity conditions of labour; (2) excess demand over supply; (3) general demoralisation caused by the unusual methods of contracting, that is to say, the letting of a contract on the cost plus profit basis, with the result that the con- tractor has had no need to organise his business or exercise any supervision over the labour output, because his profit was the greater the more his wages bill rose; (4) the general war-weariness of operatives; and (5) the war losses of the younger and more vigorous operatives and the general effect of war service on others.

In so far as the cost of building has increased from the reduction of output, there are to be considered two obvious remedies. The first is the augmentation of the numbers engaged in the skilled trades of the industry. The second is the adoption of means by which the output per head may be increased for the benefit alike of the operatives and of the State. With regard to the increase in the numbers of the operatives, the House knows that the building trade consists of a large number of trades—the plasterer, the plumber, the bricklayer, the slater, and so forth. It is of great importance that there should be an adequate number of men in each of those trades. At present there is a great shortage of plasterers all over the country, and the effect of that is that very many other trades are held up, and the builders are unable to employ as many men in those other trades as they could otherwise employ. That is a matter to which the operatives are as much alive as the employers. Various schemes have been discussed between the Government and the employers' union and the men's union, but through all these years no agreement has been reached. A few months ago the Minister of Labour announced that the Government intended to "work in" 50,000 ex-service men into the building industry, with the consent of the employers' federation, but without the consent of the men's union. That scheme has not had time to show what it can do, but the general anticipation is that it will be a complete failure.

The point I want to put to the Minister of Health is that anything by way of increasing the number of skilled men must be done by the general agreement of the industry itself, between the masters' federation and the men's federation. But the other is the more important thing. It is agreed that the really practical means by which costs may be reduced is by increasing the output in relation to wages paid, and that resolves itself into a question of the best means by which this end can be attained. At present the views of masters and men do not agree. They are on different lines. So far as the masters are concerned, there is a leaning towards the withdrawal of trade union restrictions, and the restoration of some system of payment by results. On the men's side there is an express desire that labour should take a greater part in the direction of the industry, whereby, it is alleged, labour would give more readily of its best, and the industry would be directed with greater efficiency. On one important point there is general agreement, and that is that output is best when the supply and demand of labour are equally balanced. The industry is thus maintained in a healthy, condition.

All conditions of boom or of depression which tend to displace the balance result in loss of output. On the one hand, when times are good there is some advantage taken of the easy conditions and the economic conditions to slacken effort and to reduce output. On the other hand, in times of depression there is a tendency, which accrues both from organised and unorganised sources, to restrict the output in order to employ the maximum number of men on the limited amount of work available and so to prevent a man working himself out of a job too quickly. In both cases the result is low output, and the obvious remedy is to preserve the balance. The advantage of this is recognised by employers and operatives alike, and doubtless a good deal can be done by the local authorities to assist in maintaining the balance.

The general conclusions I desire to submit are these: (1) A financial policy by which it is equally to the interests of the local authorities and of the State to enforce economy should be adopted. (2) Competitive conditions between employers in the industry should be restored. (3) If the operatives are to give a fair output for wages earned they must on the one hand be guaranteed against unemployment and slack time and on the other hand must not have the opportunity of choosing one out of two jobs. (4) In order to get the best from operatives and employers alike it is necessary to maintain an even balance of trade in the industry.

Advantage should be taken of the good feeling which now exists between employers and operatives by appointing an ad hoc Committee for the purpose of con- sidering questions affecting the output of labour in the industry and to report upon the means whereby increased production by way of improved output can be obtained. Such a Committee should consider the manner by which the numbers in these trades can be increased and the manner in which the whole industry should be directed, and it should take into consideration the suggestion that labour might organise and govern the work in the various trades so as to ensure output on such terms as will stabilise and reduce prices. Thus the builder would be better able to quote economic prices. Labour would have a share in the direction of the work and would acquire a mutual interest in so reducing costs as to promote a demand for labour, and it would have a direct incentive to see that the element of discontent and ca' canny did not enter into any local operations. We must have houses and we must have a housing policy. It is to the interest of us all to join as far as possible in getting a new housing policy under which both economy and economics have due consideration.

I am sure that if the question before the House to-day had been solely the topic raised by the hon. Member who has just spoken, if it had been solely to consider the expedients suggested by him, if the question had been one of practical proposals for reduction in the cost of housing and matters of that kind—I know that my hon. Friend has spent a great deal of time and much skill in exploring these expedients—if that had been the sole question, I should not have been to-day where I am. But it is a vastly different question. The question which is raised by this Debate is a question arising from the operation or administration of an Act of this Parliament, an Act embodying specific and solemn pledges, an Act which placed this House and the Government of the country under obligations. The action of the Government, in my judgment, is a repudiation of those obligations. Before I come to that point I wish to refer to an expression used by the Prime Minister in a letter to myself which was published the other day. My right hon. Friend said: housing plans of this House; they were the housing plans of any man who was returned to support this Government at the last General Election. They were the housing plans practically of the country, and not any nostrum of mine. I was an enthusiastic supporter of them and am now, and it is because I object to the betrayal of them that this Debate has arisen to-day. This pronoun leads me to another observation. It leads me to ask what about the doctrine of Cabinet and Governmental solidarity? We were all to try and give as good effect as we could to these plans. The hon. Member who has spoken last referred to a matter which, since we are discussing the financial basis of this housing policy, I may be permitted to refer to also. The House will agree that on no occasion during the many Debates we have had on housing policy, and which it has been my business to conduct, have I ever "referred to, or suggested, that in any way the penny-rate basis was not my own suggestion.

My hon. Friend has referred to the origin of that suggestion. I would not refer to it, were it not for this pronoun, but it is contained in public papers issued from the Ministry of Reconstruction, and in public statements made at the time of the last General Election. The basis recommended, as is well known to those who have cared to look up these papers, by the Ministry of Reconstruction was not a penny-rate basis. It was the basis more or less suggested by Lord Salisbury's Committee, under which the ultimate obligation for any extravagance would rest upon the local authority. That was the recommendation for which I was responsible. I am not complaining of the penny-rate basis. I am only saying that the personal pronoun "your" does not apply to it. I accepted it, and stood for it in the House of Commons, but the origin of it has been referred to and explained by my hon. Friend who preceded me. I have nothing to apologise for in it, but we do, and must, recognise that that basis does not contain within it an incentive to economy on the part of the authorities. We always recognised that, and the House of Commons recognised that, but we said we must get houses quickly, therefore, we must incur this risk. The House did it with its eyes open in 1919, and I suggest that it is useless to cast reflections upon that particular point now. Certainly, so far as I am concerned, I do not wish to get rid of any responsibility, but there was no particular responsibility attaching to me in that matter. Therefore, I think, the expression used there is, if I may say so, inappropriate, if not a little ungenerous. I desire to call attention to the following sentence:

I have been casting about to find examples of legislation on a more businesslike footing, and I turn to two, and I commend these examples to the notice and reflection of my right hon. Friends the Prime Minister and the Leader of the House. There was, first, the proposal to extract 50 per cent. of the price of German goods supplied to this country. It never worked, as we all knew perfectly well it would not. I take it that is an example of businesslike legislation. There is another one: We passed the other day the Second reading of a Bill to repeal an Act the object of which was to encourage the production in this country of human food. I have been informed that on this year's harvest it is expected there will be about £19,000,000 or thereabouts to pay, and about £13,000,000 of that will be for oats, but the Board of Agriculture say that only one-tenth part of the oats grown are used for human food. The result of that is that this specimen of legislation on a businesslike basis is going to cost us £11,500,000 this year for horses. I should like to be present at the meeting when my right hon. Friend the Member for Swansea (Sir A. Mond) goes down to his constituents and tells them that we have been reviewing our financial situation, that we are going to put it on a businesslike basis, and that, amongst other things, we have to find £11,500,000 for horse oats, and there will be no more homes for heroes.

I may remind my right hon. Friend that he was a Member of the Cabinet which was responsible, and that he agreed to both proposals.

I do not complain about the interruption in the least. I would refer hon. Members to the letter I wrote to the Prime Minister last week, and which I read in this House. I readily admit that I was a party to these things, so long as they did not interfere with the provision of houses for people to live in. I also quite willingly admit that I am sorry I was, but so long as this policy did not interfere with what I thought was the vital need of the country, I acquiesced in it. What is the Government position? I do not think it is quite clearly understood, if I may say so with great respect, that the provision of houses by local authorities is to be limited to 176,000 in all. [An HON. MEMBER: "Hear, hear!"] I know the hon. Member who said "Hear, hear! " is one of the most consistent Members of this House. He has always opposed this, and therefore I expect him to rejoice now. The Government proposal, as I say, is to limit the houses built by local authorities to 176,000 in all, and there is a standing instruction to them, that as far as it may be practicable, contracts are to be cancelled. Three months ago, there were some 180,000 houses contained in more or less approved tenders. I shall come to deal with my agreement with the Lord Privy Seal to which my hon. Friend (Mr. Holmes) referred, in a few minutes. We estimated at that time, after a very careful review, that perhaps there were 10,000 of these houses which were supernumerary, or excessive, or at all events, which could well be done without for some time to come.

During the past three months, there have been dropped 17,500 houses, for which tenders had been approved, and the approval for their erection has been cancelled. It may in certain cases have been reasonable, but what is the position of the local authority under this Act? The local authority is entitled to receive from Parliament, in respect of approved schemes of new house building for three years, financial assistance towards the erection of those houses above the proceeds of the penny rate. The Act says nothing about the 14th July, 1921. It refers to the rights of authorities in respect of the building of houses, approved by the Ministry of Health. This machinery, of course, took a long time to create, and a gradual process leads to the stage where local authority puts up some houses for tender. Before it does that, it has to receive the approval of the Ministry of Health. The plans of the houses, the general scheme of the houses, and the general lay-out of the houses have to be approved before it gets to the tendering stage at all, and in the vast majority of cases it has bought the land, and in a large number of other cases it has made the streets and the sewers. Last month alone, although the brake had been put on, 6,500 new tenders were submitted to the Ministry, of which only 1,400 were approved, but they were there because the local authorities had been asked by the Ministry to get these tenders, and in some cases even urged to get them. At all events, they had obtained them with the approval of the Ministry in carrying out an Act of Parliament, and that is why they were there in the month of June, 1921.

Beyond that, the House will remember that some time ago we made a special effort, in connection with the roads and so on, to find work for the unemployed, and I was urged and did all I could to encourage local authorities to get ahead with their street and sewer work, because it would find work for a great proportion of unskilled labour, and we did it. We were instructed to do it in advance of the houses in order to provide some useful work for the unemployed, and I did it, and the local authorities undertook this work at the direct request of the Government. It is true that my right hon. Friend says he will make some equitable arrangement as to this work. I have no doubt he will; I am sure he will deal with it as sympathetically as he can, but he has got the limit of 176,000 houses, and I believe, as a matter of fact, there are about 166,000 signed contracts, and where is he going to get all these houses? He has to make a certain allowance for new houses instead of slums; there are 175,000 Council tenders; there are streets and sewers made at the direct request of this Government for another 15,000 houses; and are we to take it as a triumph of business administration that the local authority is to be told, "We will pay your expenses for all this; it will come within the limit; you will not be charged more than a penny rate"? We are to stand by and see a monument of housing in a grass-grown street, which the local authority laid at the direct request of the British Government to find work for the unemployed, and which they allowed to become derelict four months afterwards at the request of the same Government. It will be a standing disgrace if a thing like that is allowed to remain.

There are all sorts of other obligations. Local authorities have bought land, and I understand they have actually acquired 27,000 acres of land, which, at 10 houses to the acre, means 270,000 houses; they have agreed with architects to draw up plans, and many councils have been urged to do so where the need has been great, and these men are not a lot of dreamers. They have employed practical people who knew their business to get out plans, and quantities, and so on. They have entered into all manner of obligations which anybody has to enter into if he starts to buy a piece of land and build a house on it. All sorts of obligations and arrangements have to be made before you finally see a man dig a hole in the ground in order to commence building, and this is all to be cut off short with a knife on the 14th July. The local authorities will be paid, no doubt —of course they will—over and above the proceeds of a penny rate, but all that energy, and expenditure, and work, and enthusiasm for something which everybody admits is needed is to be held up. That is putting housing on a businesslike footing.

I would like to say a word now with regard to those who have built under the subsidy. There are a great many of these men who will be ruined; there is no doubt about it. I am quite sure the Ministry of Health will deal in as sympathetic a way as they can with the men who put in claims and say they have entered into this obligation and the other obligation. I received three letters this morning from ex-service men. They seemed to be soberly written, and each one of them had arranged to build himself, or get himself built, a house under the subsidy. They had dislocated their arrangements and entered into various commitments in anticipation that the Government would make good its word, and when the Act introduced by the Secretary for Scotland was in the House not long since, not a word was said about forbidding people to earn a subsidy after 1st July, or of the special circumstances of the six weeks thereafter. What was the object and purpose of the Act? We were told last year that the subsidy was a cheaper way of getting houses. I think it is; I agree, and therefore I did my best to make it work. There was not a word said, when this Bill went through the House, or when my right hon. Friend's Bill had a Second Reading only the other day, that the people who had looked forward to this scheme by which they would be entitled to earn a subsidy if they built a house by June, 1922, were only having something put in front of them which was a scrap of paper, because they will not be able to earn a subsidy, and the Act was practically set aside, except in so far as it is retrospective, on the very self-same day as it received the Royal Assent. I do not think this-is a fair way to deal with legislation or with the obligations we have incurred thereunder.

Let me now refer to the slum question. The local authority under the Act of 1919 is entitled to receive assistance in respect of work they do for slum improvements, not for three years, but for five years. With respect to new houses, the rights of the local authorities expire next year, but with regard to slums they continue for five years. My right hon. Friend has said something about a more economical way of dealing with slums, and it was in the hope that we might obtain some suggestions of that kind that I asked my right hon. Friend to take charge of that committee some months ago, whose report I hope the House will read. Some time ago, however, with a view to seeing to what extent you could patch up houses, we had 4,500 empty houses in London investigated and examined by practical people. My right hon. Friend himself supplied me with the expert officers for this purpose, and it was found then that of these 4,500 empty houses in London, whilst about 1,000 or more were said by their owners to be sufficiently in repair, and so on, of the balance three-quarters of them could not be repaired at all. I had exactly the same experience as my right hon. Friend. I had these experts up, and I said, "You are too high in your standard. Surely you can do something to patch these places up." I sent them, not once or twice, but time and again, to see if they could not comb out a few more houses to be patched up by some more economical process. Finally, in despair, I spent two or three days myself looking at some of them which they had refused. Whether their standard was too high or not, there is no doubt that the vast bulk of those houses, do what you can with patching up—under the existing Act a number of local authorities have done a good deal of patching up— but if you come to these 180,000 houses that are really uninhabitable, the vast bulk of them cannot be patched up. There is no doubt at all about it, on the results of the examinations which we had made, not by dreamers, but by practical men. As a matter of fact, some very good work was done by the Department over which my right hon. Friend was then presiding, and the skilled officers whom he controlled were the ones who advised him.

7.0 P.M.

We transformed into flats a certain number of these houses. I think we produced about 500 flats in all out of these houses that were worth converting, but what did the cost work out at? It worked out at about £700—I am erring on the cheap side—per flat. Of course, the costs of building were high, and we had all the disabilities attaching to that time but when you have allowed for this £200,000, when you have put it as high as you can, I am quite sure, if a most generous interpretation be placed upon it. might be the equivalent of 10,000 houses. I think probably it would not be more than half that, but put it at 10,000. The local authority is entitled for five years to help with their slum property. This is the 10,000 houses contribution for a single period of from 40 to 60 years. That is not dealing with the slum problem, but I want the House to examine a little more closely what are the reasons for this decision of the Government. Is it that the scheme was wrong? It was the scheme of the whole House. We were confronted with the alternative of State building, which I am sure nobody wanted. We had had enough of that in the War, and we did not want to find ourselves the owners of many thousands of State-owned houses. We had had the control of building. At that time the purpose of the country was to get people to restore their own businesses and factories and their own houses. Therefore, that was out of the question. Private enterprise at that time could not take on the work, and it cannot take it on now, I am sorry to say. I wish it could. The experience of the subsidy, however, shows that it cannot. The response to the subsidy was very disappointing on the whole. I believe the number of houses built at the present time is about 15,000. That is what private enterprise has done, and it is really very disappointing, but if private enterprise cannot build with a subsidy, it certainly cannot build without. That is clear. There are two reasons why private enterprise, at the present time, cannot meet the need. The first is that the cost of building is so high that houses cannot pay economic rents. As long as that position remains private enterprise will not step in and build. The other thing is that, although it does not apply to the new houses, builders have before them the Rent Restriction Act, which goes on until June, 1923. I do not think you can expect private enterprise to devote itself to house building so long as that Statute remains. I do not think it is reasonable to expect it. These are two governing reasons why private enterprise will not meet the case for at least two years, and I would be very glad if it met it then. But private enterprise, I do not think, ever will meet the slum problem. I am trying to put the matter fairly.

Men build houses for the same motive as men keep shops, and that is why it is that private enterprise will not redeem the slums, and never will, because it is not a business proposition. In the crowded areas of our towns a great many of these slum areas ought to be taken up with warehouses and offices. If you were to have clearings, simply as private enterprises, you would not build sufficient houses to re-house the people. Private enterprise wishes to make a successful business, but it can never deal with the slum property successfully. I see, therefore, no prospect of private enterprise meeting the necessity of these cases. My right hon. Friend the Minister of Health cannot say, he knows he cannot say, that this decision of the Government is consonant with the health needs of the people. He cannot say that this programme will meet the necessities of the ex-service men alone. This decision is not for any of those causes. I want to point out to the House that it was only the other day you had Acts passing through this House. This decision is consequent upon new phenomena, the terrifying phenomena since 1st April, since the appointment of the Minister without Portfolio. We have had two by-elections, and they were very bad ones. On 1st April we knew the state of our national finances—except for one point— substantially as we know them now. That matter was the coal strike. [HON. MEMBERS: "Not a strike, but a lockout!"]

I want the House to bear in mind that for a long time after the 1st April there was no suggestion of this policy. My right hon. Friend the Secretary of State for Scotland introduced his Subsidy Bill quite recently—I think it was early in June. There was no suggestion then of this change. I quite agree that, when we look at it, it may well be we cannot afford it, but it is fair and proper to inquire in the light of this decision whether we can afford it. I quite recognise that if the country has not the money to build houses at ,all, it must go without them. But you have no right to stop building houses whilst you are spending money in other things which are non-essential. I agree that the scheme is expensive, and that the houses are very costly—deplorably costly—for the reasons which were stated by the hon. Member who has just spoken. I must refer on this occasion to a statement which appeared the other day. On 19th June a statement issued by the Director-General for Housing stated:

When you remember what amounts were being spent all over the country—the vast sums of money expendid to put up factories, often very expensively when the Excess Profits Duty was in force—it was no wonder that prices soared up. There are men in the House familiar with that. People building recklessly forced up district rates and the prices of material. At the same time there was a grievous shortage of labour. I am not saying all our arrangements were perfect. I never stated that you could improvise, under great pressure, a scheme—with many local authorities having at their call officials of varying experience—without serious defects and imperfections arising. At the same time, high costs were inherent in the conditions of building which prevailed during that period. Now my right hon. Friend refers to the agreement I came to earlier in the year with the Lord Privy Seal. Here I may correct a figure given by the right hon. Member for Paisley (Mr. Asquith). If he will refer to the OFFICIAL REPORT of 1919, he will see that the limit of the obligations of the State then suggested was £15,000,000.

The agreement with the Lord Privy Seal was based on careful examination of our obligations to the local authorities. It was perfectly evident we had to get our expenditure reduced as much as we could. I took, as a standard, to reduce it to the lowest we were fairly and honourably compelled to meet. I examined the obligations that local authorities had incurred with our approval, and found they amounted—including what you ought to assess for slum improvements—to about 250,000 houses, allowing 50,000 in respect of slum improvements. The agreement clearly and fully met our obligations to the local authorities. More than that, it occupied the trade during the time they were entitled to receive assistance from the Act. It did not cut them off some time before the end of that period. It would have carried them through, fairly and economically, the whole term of the Act. It was a great reduction upon what we would have liked to have done. It was a sensible and practical contribution to the reduction of the cost of housing, and it maintained our obligations to the local authorities. We dealt fairly, as fairly as the finances of the time would allow, with all claims. I suggest that was a fair and practicable proposal to cut our commitments during this costly time—a time of falling prices —to the minimum of our obligations, and the obligations of the local authorities. It was the least we could do in view of our pledges, and that was as far as we went. That was a fair and reasonable contribution. It was so accepted at that time by my right hon. Friend.

It is true that I am open to be charged that, like my hon. and gallant Friend below, I. acquiesced in other expenditure. I did, and I say quite frankly and fairly that I acquiesced in it until I found that housing had to go first so that certain other things might be continued. I objected, and I am going to object to this stoppage, because it is a stoppage, camouflage it how you will, of this scheme whilst expenditure in other and less important services continues. [HON. MEMBERS: "No" and "Yes!" and "What are they?"] I will name them. But in the first instance I want to remind the House of the Supplementary Estimates which have come in since January in two sec- tions, the one before and the other after Easter. There is not a single penny of all these millions which relates to the expenditure of the Ministry of Health. I have got them here, and the list can be given. It is true that we have been involved in a prodigious expenditure in connection with the coal strike. I cannot say I am particularly proud of our connection with that affair, but I recognise that when we enter into obligations we have got to meet them. This means several years of the housing subsidy. But there is one expenditure to which I object very much more than that, which would much more than meet the Housing Bill, and which we have no right, in my opinion, to maintain if we are to cut off the housing. You may say, though it is useless to say, that "you will keep this subject carefully under review." You are dismantling the machine. You are scattering the parts. You are doing away with the personnel, both voluntary and otherwise. You may think it right. All I am saying is that if you do that it is not possible at the same time simply to take it up again.

I want particularly my right hon. Friend the Colonial Secretary, who is responsible for this Department, not to think or feel that I am referring to him, because I am not. It is a question of general policy. My only hope indeed of getting a reduction is the fact that he is in charge. We have, however, no right to cut down the slums to £200,000 and spend £90,000 a month on Assyrian refugees. If it comes to a question between the two I object to the housing going before the Assyrian refugees—

We have poured out, and are proposing to pour out, in this year's Estimates £26,500,000 on Palestine and Mesopotamia, roughly £8 per head of the population. I object to scattering this money on the population from Dan to Beersheba while at the same time stopping housing. If one or other of these expenditures has to stop let the expenditure on Mesopotamia stop first. We have nothing much to show for it all!

For your £10,000,000 subsidy on housing you will at least see houses. You can see them on every high road now. I feel there is nothing to be ashamed of about it. You will not see much for your £26,000,000 in Mesopotamia.

If my Noble Friend who is interrupting can show me what we are getting for it all—[An HON. MEMBER: "Read the 'Financial News!'"]

In the circumstances, it is usual to listen to an ex-Minister. One interruption leads to another, and has a tendency to spread. I would ask hon. Members to give the right hon. Gentleman a quiet hearing.

I quite recognise the justice of the interjection of the Noble Lord (Earl Winterton). I admitted it in my letter to the Prime Minister. Why I am objecting now is because we are stopping the expenditure on housing and this other expenditure is going on. The whole point of my objection is that expenditure on our people at home is more important than expenditure on people abroad. I object to stopping expenditure on housing while you are continuing it in the desert. I propose to continue to object. After ail, we are bound by our pledges to the ex-service men to see after them. We are bound by Act of Parliament to see them through —as economically as you like. Cut it down to your bare obligations. Discharge them as economically as you can—well and good. Invent a cheaper method of meeting your obligations—if you can. Do not make an Act of Parliament, by-some arbitrary decision, a scrap of paper. Do not, in view of the promises and the pledges which really every Member of this House made at the last General Election—pledges given to ex-service men and to local authorities—let us be a party to breaking them and bringing this necessary enterprise to a stop, while we are incurring expenditure which I am sure we shall not be able to justify to these men when we meet them face to face. I confess, when I remember that we are now in this country spending at least £14,000,000 per year in treating the consequences of tuberculosis, and in dealing with those concerned in loss of of wages, that I think we cannot afford not to go on with housing. According to the Report which came from my right hon. Friend's Department the other day, there are 248,000 weeks lost annually through sickness. I investigated this some time ago. I will undertake to say that anyone investigating this loss of working power will come to the conclusion that at least one-third of it is entirely preventable, and that a vast amount of it arises because of the condition of the homes of the people. There are few things more expensive to this country at the present time than its slums. They cost us millions every year.

I do not pose—I never did, and never shall—as a little Englander, or anything of that sort. Let us discharge our obligations, wherever they are. But after all is said and done, the British Empire depends first and last upon the vitality, character, and stamina of the people of these islands. We all recognised that during the War. We all pledged ourselves to try to set it right. We all agreed that there was nothing more important than improving the stamina of our people by going on steadily and progressively with the improvement of their housing accommodation. And it is true! You cannot have gross interruptions in work of this kind. We promised it to our people during the War. We felt it then in our time of direst need. We saw the matter rightly then. I suggest that the action now being taken, apart from being a violation of these pledges, is bad statesmanship—if ever there was bad statesmanship. If there had never been a pledge it would still have been bad statesmanship. The worst of changes of policy of this kind is that they are calculated to undermine the confidence of the people in the reliability of established Government. I believe that is worse than any other result that can be imagined, because if the democracy lose confidence they will lose hope. If the democracy lose hope they will lose that of which it is the essential companion— patience and self-control. Therefore, in my opinion, apart from considerations of housing alone, apart from our pledges, the action taken in the abrupt termination of this scheme and in the laceration of the obligations involved is a betrayal of the best interests of true and stable Government.

My right hon. Friend has enjoyed the usual delights of a resigning Minister, and I do not begrudge him them in the least. [ Interruption. ] Perhaps hon. Members opposite will kindly listen to what I am going to say. Having been criticised by many during two or three years for ''extravagant muddling," he is now held by the people who have criticised him to be the one honest man in the Government. That is the usual treat, the usual joy, of every resigning Minister. During the 30 years I have been in this House I have had many experiences of this kind. I have joined in cheering Ministers who have resigned from Ministries to which I did not belong. There is always on the sideboard of the Opposition plenty of veal for the returning prodigal. It is generally concentrated on the first performance. My right hon. Friend will find, like many other resigning Ministers, that his appetite will outlast the supply of fatted calf. I have heard the right hon. Gentleman criticised in this House on his housing policy by the very people who are now cheering him. I have heard him attacked for the muddle he was making of it, and they asked, "Where are these houses?" This was done by the very people who are cheering him at the present moment. It is only a short time ago that I had to stand at this Box in reference to my right hon. Friend, and the very people who are cheering him now were then begrudging him too much salary. I congratulate him on this fame which he has won, for he has won it all at the expense of only one month's salary. [An HON. MEMBER: "That is dirty!"]

The House has listened to a very strong attack upon the Prime Minister, and it is in the interests of Debate that hon. Members should not grudge an expression of opinion from the other side.

On a point of Order. I would like to ask is any hon. Member of this House entitled to attribute motives to other hon. Members in connection with salaries?

I shall be glad of the assistance of the hon. Member for Silver-town in enforcing that salutary rule.

There have been some very severe things said about myself and my colleagues in reference to things in which my right hon. Friend has participated during the last few months, and I think I am entitled to answer them. What is it all about? I will put it to the House. In February last my right hon. Friend agreed to cut down housing by very considerable figures, and he says it has been cut down now because of our expenditure in Mesopotamia and elsewhere. Why was it cut down then? Was there no expenditure in Mesopotamia then? Not only was there expenditure in Mesopotamia then, but it was considerably heavier. The only thing that has happened since is that the expenditure in Mesopotamia has been cut down by several millions, and provision has been made for cutting it down more. The right hon. Gentleman says, "Because you are cutting down the number of houses for the people here on account of expenditure in Mesopotamia, I resign." Why did the right hon. Gentleman not resign in February, when Mesopotamia was costing us millions more before the first great cut was made?

What was the cut then? It was from £500,000 down to something under £300,000. The cut now is not by hundreds of thousands, but just by tens of thousands. Cutting down by hundreds of thousands for Mesopotamia in February is a thing which the right hon. Gentleman can stand, but cutting down just by tens of thousands in August is a thing that he must resign upon, and he says it is upon the grounds of conviction and honour. Why did my right hon. Friend agree to cut down his programme? He agreed for exactly the same reason as we have arrived at the present figure, that is, the financial condition of the country. He says so, and admits it. In his own words, the right hon. Gentleman admits that he did it then because of the conditions of the time and the condition of the country. Therefore, to use his own words, he was in February a "shifting opportunist "—

My right hon. Friend is evading the whole point. In February our expenditure was consistent with our carry- ing out the obligations existing between us and the local authorities under an Act of Parliament, and the cut now is not.

What we have done is absolutely consistent with the housing policy of the country, and the only difference is that it will be developed on sounder and more business-like lines.

Certainly I am responsible, and I am here to defend it. What is the present proposal? There was a committee appointed by my right hon. Friend in his own Department, and it was his own committee. I believe there was a very able Member of the Opposition on it and this is the report they made, upon which action is now being taken—

"That a definite limit should be fixed immediately to the number of houses to be erected by local authorities upon the present policy of the State being responsible for the whole deficit less the produce of a penny rate."

That is the committee appointed by my right hon. Friend, and they unanimously recommended that a definite number should be fixed. My right hon. Friend (Dr. Addison) fixed it at 200,000, and the Minister of Health has fixed it at 176,000. The difference between those two numbers is not a difference between principle and expediency and opportunism. It is purely a question of what is the right figure, and I am going to say that I think the Minister of Health has taken the right course. A committee has also been appointed in Scotland by the Scottish Office, and I have here a document issued by that committee which I hope may be in the hands of hon. Members by-and-by. This is the first copy I have had. That committee consisted of business men, officials and trade union representatives.

One was Mr. William Cross, of Glasgow, the Secretary of the Amalgamated Slaters' Society of Scotland; and the other is the Secretary of the United Operative Masons' Association of Scotland. Surely those are persons who know something about building.

They were appointed by the Secretary for Scotland, to investigate the conditions of housing there, and this is their report:

There had been no increase in wages, or, at any rate, no substantial increase. I am showing that the increased cost had nothing to do with any increase in the cost of material or wages. The increased cost was in the main attributable to the fact that the building trade was in a position to demand its own price, and the first effect of a limitation of the number was this: The Ministry of Health, the local authorities, and the person who wanted houses built for the first time became completely masters of the situation; at any rate, they were on more equal terms to bargain with the building trade. Surely that is what any business man would do? The whole point is this: The figure which gave the local authorities and the Minister of Health the best advantage is the figure which was fixed in February, not the figure fixed in July. My right hon. Friend the Minister of Health thinks the July figure is better, and why? Because the present commitments will fill up the building trade for 18 months. In Scotland, I am told, they will fill it up for about a couple of years. What will be the result of this policy? Not a single house the fewer will be built for 18 months in England and for two years in Scotland! Would anyone who listened to my right hon. Friend—to his great appeals about conviction, and obligations, and tuberculosis, to all his appeals about the importance of housing, with all of which I agree— would any one have thought that not a single house the fewer would be built in England for 18 months and for two years in Scotland?

I ask the House what would be the alternative? Here you have the building trade full up for 18 months. What is the alternative? It is that we should go on entering into contracts at present prices, knowing that prices are going to fall—[An HON. MEMBER: "Not under the present Government"]—and with the building trade becoming more and more masters of the situation as every additional group of houses is put on the market. The building market is not different from any other market; if there is a glut of demand and an inadequate supply, up go prices. The result would have been that we should have entered into contracts for 20,000, 30,000 or 40,000 houses within the next few months, at present prices, and those houses could not have been built. They could not even have been started. Yet the prices for them would have been fixed. The tenders would have been accepted; the contracts would have been made, and there would have been an obligation of honour. You would have had to carry them out. Was there ever a more unbusinesslike proposition than that?

My right hon. Friend has really no right to complain of the support he had for his building policy. I think he might acknowledge that. He had a very big task, a very difficult task, but I do not believe that, in my experience, any Minister ever got better support. To begin with, there was no proposal which he submitted that the House of Commons did not accept. There was no proposal made either to the House of Commons or to the other House, which Parliament did not accept in the main. My right hon. Friend should be the first to acknowledge that. He was very drastic in some of his proposals, whether for the acquisition of land or for power to build. It was such legislation as had never before been submitted to the House of Commons for the purpose of carrying out a great housing policy. The House of Commons and the House of Lords both supported my right hon. Friend in a way few Ministers have been supported in carrying through their policy.

Next I come to the Treasury. Take the position of my right hon. Friend the late Chancellor of the Exchequer (Mr. Chamberlain). Everybody knows what a time he had. We were winding up the War. There has been a good deal of talk about Mesopotamia. It is not easy, once you get into a country, to get out. It was not the present Government who got us into Mesopotamia. The only thing that happened was that we did make a good job of it. As I say, once we get into a country, it is not easy to get out of it. We had destroyed the Government. The Turkish Government was destroyed. There was no other Government. We might have cleared out bag and baggage, helter-skelter, but that would have left the whole country in absolute confusion, and would have been somewhat discreditable on our part. In the long run, it would have done us no good. Having got there, we had to set up some sort of firm Government before we left. We have set up a Government chosen by the people themselves. The Emil Feisal is one of the most distinguished men of his race. He is a most popular man. He was chosen unanimously by them. It is now a Government of their own choosing. But that is not what I wanted to put to the House.

I want to say that my right hon. Friend had the most difficult task with which any Chancellor of the Exchequer has ever been confronted. It is easier to raise money during a war than to clear up the débris of war. During the War, we had behind us the intense patriotism of the people; afterwards, we had to face gigantic obligations. In spite of that, the Chancellor of the Exchequer most generously met every demand made upon him. I do not believe the right hon. Gentleman himself will deny that he was met with the greatest generosity by the Treasury. The Legislature gave him all that he asked. The Treasury gave him what he asked. The municipalities, under great difficulties, exerted themselves very considerably. These were the conditions. I cannot say that what was done has given so much satisfaction as one could have wished, but, at any rate, my right hon. Friend, when he was criticising his colleagues for acts for which he, as a Member of the Cabinet, was equally responsible with them, might have paid that tribute to those who for two or three years had assisted him in carrying out his policy.

I wish my right hon. Friend had had the same collective sense when he came to deal with other parts of this question. He objects to being treated as the individual responsible for a policy of which I thought he was proud. I gave him credit for that. At any rate, it was a policy which he was entrusted to carry out, and he got generous support from his colleagues. I think he might acknowledge that. If the policy was cut down, it was not cut down through lack of conviction. It is ungenerous to suggest that. It is not true. It was not cut down because of any lack of conviction on the part of anyone—on the part of the Chancellor of the Exchequer or of the Prime Minister, or of anyone else associated with it. In suggesting that it was, my right hon. Friend is doing an injustice to colleagues with whom he had worked for years. It was cut down because we were coming to the biggest trade slump this country has ever witnessed—the most anxious monetary position we have ever had to face. It was cut down further because we had gone through the most exhausting industrial trouble we have ever seen. For four months the biggest industry of this country had been at a standstill, and other industries had suffered, with the result that there were no orders coming into our mills, and such orders as there might have been the owners could not carry out. In face of that, it was impossible for us to continue this policy. The position involved cutting down charges within something like reasonable limits; otherwise it would be impossible for us to discharge our duty to the taxpayers of this country. I can well understand the grievance of my right hon. Friend. I can understand his feelings a little—I will not say bitter, but a little unhappy about the whole position. But surely, his attitude is hardly justified, in face of all the country has gone through, in face of the sacrifices it has made for carrying out his policy. No country in Europe, no country in the world has made so large sacrifices as this country has made since the War. What has America done?

If it has gone "dry," then surely it has more money to spare for housing. But it has not found the money for that purpose. This country, with its heavier liabilities, without even having gone "dry," has found more money for the housing of its working classes than the United States of America or any other country in the world, whether victorious or otherwise. That is public knowledge. Are we to be held up to obloquy? Is it to be said to the working classes of this country that the country is oblivious to its duty, and that we are going to let them rot in tubercular slums, when more effort has been made here than in any country in the world? I ask those who are criticising us to deny that statement. If they cannot deny it, I ask them to be honest enough to repeat it to their friends. It is not a question of right or wrong. I am only pointing out that this country has done this, not within the limits of her resources, but even beyond them, with the heaviest taxation of any country in the world, because we are facing our liabilities.

8.0 P.M.

My right hon. Friend the Member for Platting (Mr. Clynes) wanted to know what we have done Is there any other country throughout the world which has such a scheme for deal- ing with unemployment as we have? Many a time have I met working men, and I ask anyone who has attended meetings of working men, or has had anything to say to working men, whether the one thing they always declared they were most concerned about was not anxiety regarding unemployment. That statement has been made to me by trade unionists many and many a time. Has there ever been in any country as generous and as universal a scheme to deal with unemployment as has been produced here? If so, name the land! Let Britain get credit for what she has done. Do not always be holding her up to the obloquy and contempt of her children. We are only now crying a halt—not to stop building. There will not be a single house the fewer built. On the contrary, there will be more houses built, according to the statement signed by those two trade union representatives, because we know that by pulling up now— by liquidating this gigantic obligation we have got upon us of 176,000 houses, and then, by meeting the building trade on equal terms—there will be more houses— cheaper ones. [An HON. MEMBER: "Cheaper?"] Why should there not be? My hon. Friend seems to think there is some virtue in paying more for a house than it is worth. It is a vice of what he represents. Therefore, I say this is simply an effort—and I use the phrase which I used before—not to stop house building, but to put it on a better and more business-like footing.

Political rapiers are never so sharp, political blows never so searching, as when they are passing between those who have been long joined in close association. I am not rising to take part in this personal controversy. I do not desire to criticise my right hon. Friend the Member for Shoreditch (Dr. Addison). A fellow-feeling makes us wondrous kind. He is not the first Minister who has been set an impossible task, and has suffered from the exuberant expressions of a warm and feeling heart. I think the Debate, so far as it has proceeded, has made it clear that the Government policy is not a policy of the stoppage of housing, and that it does not arise solely from the fact that we are, as one Member expressed it, hard up. My right hon. Friend's policy is this. The cost of house-building has continually risen, until it has reached a height when you are faced with one of two alternatives—either to put upon the taxpayers a burden heavier than they can bear, or else receive for your houses rent which is heavier than the working people can pay. Unfortunately, the Labour party are never ready to face realities. They are not even ready now, in spite of all the experience that we have had. Speaking in the early part of last year, my right hon. Friend the Member for Shoreditch said:

There is one feature, at any rate, about what has happened which is satisfactory to me, although it is one which, I think, was animadverted upon by my right hon. Friend. Local authorities throughout the country find themselves in possession of a very considerable quantity of land. If that land is not tied up too tightly for one purpose, I believe it will prove a very valuable acquisition in the future, and, may be, some compensation for other losses which they have incurred. Before the, War I happened to be chairman of a special committee appointed by the Birmingham City Council to inquire into the whole question of housing, to see whether any new policy could be adopted which could help us to deal with our ever-present problem of slums. We spent some time investigating the subject and taking evidence, and we came to the conclusion that for a municipality to undertake a programme of house building would be to plunge it into liabilities beyond its resources, but that it could usefully purchase land, provide the necessary services of transport, water, gas, and other necessaries, and that it might even go so far as to give some financial assistance to private enterprise in order to enable those lands to be developed in accordance with modern ideas of what housing should be. I still think that is the proper policy for local authorities to pursue. When this great programme has been completed, I hope that, with the land which remains upon their hands, our local authorities will again approach the subject from that point of view, to see if they cannot combine the advantages of municipal control side by side with the cheapness of work and the thorough understanding of the business of house building which is to be found amongst those who have given their lives to the business.

I want to say a word or two upon two points. The first is in connection with slums. My right hon. Friend has already referred to the committee of which he asked me to be chairman, which sat for about 18 months, and only a few weeks ago handed in its report. That report has now been printed, but, owing to the parsimony of the Treasury, I regret to say it-is not issued as a Command Paper, and is not to be found in the Vote Office, but I believe it is to be found in the Sale Office downstairs. I hope hon. Members who may be particularly interested in the question of slums will expend the sum of threepence upon a copy, and study it, not because it contains my view, but the unanimous views of a number of acknowledged experts upon this subject who gave very prolonged study and attention to it in the course of the investigation. My committee, very early in the course of their proceedings, came to the conclusion that it was a fallacy to suppose that you could, in the course of a few years, sv7eep away the slums of our great cities, and replace them by model dwellings. It became perfectly evident to us—in fact, it was really well known to some of us beforehand—that, although you might tinker at this problem, and clear away a small space here and clear away a small space, there, it was altogether on too large a scale throughout the country to make it possible to hope that in less than a generation, at the very shortest, you could possibly get rid of the slums and replace them, by anything which would be satisfactory to our modern ideas.

More than that, the ultimate solution of this slum problem will only be achieved if it be looked at from a very much wider point of view than has been done hitherto. When you take a slum area crowded with people, and perhaps in a half-ruinous condition, a number of questions arise as to what you are going to do with the people you displace. Are you going to put them back again upon the same site? If you do, you have only two alternatives before you. Either you must repeat the overcrowding you are trying to remove, or else you have to expand vertically, instead of horizontally, and put the people into flats. I do not believe anybody who has given any study to the question considers that flats are a suitable form of accommodation for working people who have no servants. The rooms at the bottom of a flat are damp and sunless, because they are shadowed by the high buildings. The flats at the top mean extra labour for the housewife, and it also means that, if children live on the top floor, they either have to play in the passages in the flat, or come downstairs and play in open spaces far away from those who have their care. There are other objections, and one I should like to mention. It is not infrequently supposed that flats are cheaper to build than self-contained houses. That is a fallacy. The cost of building these high erections increases rapidly as you go up, and it is not long before you find the cost per tenement in one of these large flats is actually greater than a self-contained house with similar accommodation. If you go up high, you have to provide lifts, which take room and cost money, and you cannot allow children to go up and down without having someone to attend to the lift, and that again increases the running expenses. Therefore, on all these grounds I think anyone who has given attention to the subject will agree that these places are unsuitable for working people.

Supposing you decide that you cannot replace the people on the site, you have got to take them somewhere else. That, of course, is what the local authorities have been trying to do recently. They have built houses outside the built-up area without any regard to the question of how the people who live in those houses are to get to their work. I remember talking to one of the local authorities of the City, and they told me that they had a very fine scheme for housing the people whom they proposed to displace from one of the slum areas in the City. I said to them, "But you are going to take these people away from their work. How are they going to get to their work when you have got them into this new garden suburb that you are going to build?" They replied, "Oh, that is not our business. It is someone else's business to find them transport." And so you find—and this applies particularly to London—that this problem really needs looking at from a very much bigger point of view than that merely of the local patch with which you are dealing. What is really required is a plan of the whole of the City and of the surrounding areas—a plan which will show what is to be the ultimate distribution of the various activities which are to be carried on in the whole of the district. You want to have new powers. You want to have powers to plan built-up areas—powers of what in America is called "zoning," although that term is not used in the same sense in which we should use it. It does not mean concentric zones, but the dividing up of an area into districts, and the assignment to each district—preserving always, of course, a certain amount of elasticity—of the use to which it will be put, so that one district shall be commercial, another industrial, a third residential, and so forth.

That is the way in which the ultimate solution of this slum problem will have to be tackled. You have to get your cities planned so that all your alterations, all your allocations of population, shall be in accordance with that plan, which must be carefully thought out, and which must not merely provide that certain parts of the city shall be preserved for residential purposes, but must provide proper means of transport between those parts and the parts where the people work. What is to be done in the meantime? This is a slow business. There is the preparation of the plan, and it may be years before it is carried to anything like completion. Something must be done in the meantime, and the problem of what to do in the meantime was one of those to which my committee particularly addressed themselves during their investigations. I entirely agree with the present Minister of Health that it would be the greatest mistake to sit down and say that, because you cannot entirely revolutionise your slum areas, therefore you are to do nothing at all. There is a great deal that can be done, in spite of what my right hon. Friend said about the difficulty or impossibility of repairing certain houses. Of course, I know that there are many such houses which cannot be repaired, but I maintain—and I have inspected slums in a good many cities now —that there is a very large number of houses which could not only be repaired, but which could be made into comfortable, and, on the whole, decent dwellings for working people at comparatively small expense, if the matter were set about in a businesslike manner.

It is not possible to tackle this problem by private enterprise. My right hon. Friend is perfectly right there. There are many reasons for that, of which my right hon. Friend gave one. It is not an economic problem. You never get an adequate return from your renovated slum houses to pay you for the money you have to spend upon them to put them into decent order. But there are other reasons. As a rule, house property of this kind is divided up into small plots. The ownerships are small, and the owners themselves are small. They have very limited resources, and that is one reason why local authorities, who have extensive powers under existing legislation to force landlords to put their houses into proper repair, have not been able to take full advantage of those powers. It is no use going to a person who has not got the money and trying to make him spend money upon putting in order the house upon the rent of which, perhaps, he depends for his livelihood. It cannot be done by private enterprise, and that is what led my committee up to the proposition to which I should like very briefly to direct the attention of the House. Put in a sentence, the suggestion of the committee is that local authorities should be encouraged to buy up slum areas of considerable extent and to improve them by repairs—and not only by repairs, but by alterations as well— pending an ultimate reconstruction of the property on the whole of the site.

A scheme of this kind would mean that, when the property has been acquired, the local authority would not be bound to produce a scheme for pulling down the houses upon it and replacing them either by other houses or by factories; but they would be permitted to keep it in hand and to continue to draw rent from it, but to improve it by what would probably be different methods in the case of different parts of the area. Here it might be desirable to pull down a house to let more light and air into those which remain; there it might be found desirable to provide more sanitary conveniences— and it is the lack of sanitary conveniences that is responsible for a great deal of the degrading appearance of the slums and of the people who live in them. Then there is another advantage about a proposition of this kind, under which the local authority would become the landlord in place of the numerous small landlords who now own the property. Everyone who has had anything to do with houses of this kind knows that the presence of one or two rough, wild tenants in the neighbourhood lets down the tone of the whole neighbourhood. It is not the slightest use for one landlord to look after his property himself, to take care of it, to see that it is kept in good repair, and so forth, if next door to him is a landlord who does not take the same care, who allows any kind of tenant to come there, and, as I have said, really ruins the whole standard and tone of the neighbourhood. When you have, as I have suggested, a considerable area in one hand, and especially in the hands of a local authority, it is possible to introduce a uniform system of management throughout—an intelligent, sympathetic system of management such as that which was practised by the late Miss Octavia Hill, and which, as is well known, did actually redeem whole neighbourhoods which were known to the police as being some of the worst in the whole city, and converted the people there into clean, decent, self-respecting, and orderly tenants, whose rents, by the way, were no longer in arrear, because they were encouraged, by the promise and the carrying out of improvements in the property from time to time, to pay their rents when they became due.

My right hon. Friend the Member for Shoreditch spoke of the powers that already exist in the Act of 1919 for dealing with slum property. It is true that those powers do exist, but they have not been taken advantage of, and practically nothing has been done under that Act. That brings me to the important question of compensation. If a local authority is going to acquire property in the way that I have been suggesting, it is absolutely necessary that some new method of compensation shall be introduced. The history of compensation for unhealthy property in unhealthy areas has been singularly unfortunate. Under the Act of 1890 the price to be paid was the fair market value of the site and buildings, subject to certain conditions which I need not now detail; and that seemed at the time to be a fair and reasonable and equitable method of assessing the compensation. But, unfortunately, it turned out to be extremely costly in practice to the local authorities, because they always had to pay the market value, and the market value possibly for industrial purposes was far greater than its value for housing purposes. Although they were intending to use a site for housing purposes, nevertheless they had to pay a higher value due to its potential value as a manufacturing or commercial site. To take one of the schemes which was carried out by the London County Council, the Boundary Street scheme, it caused an increase of £268,000 in the rates owing to the very high price they had to pay. It was to remedy that that the compensation Clauses of the 1919 Act were introduced. Under Section 9 of that Act the price to be paid is to be based on the bare value of the site, without anything for buildings, and even that bare site value is to be modified according to the use to which the site is to be put. If, therefore, the site is to be converted, after the removal of the existing property, into an open space or to be used for housing purposes its value will be modified and reduced to whatever might be the value for those purposes only.

That would seem a very advantageous arrangement to the local authorities, but it is so inequitable that no local authority will embark upon it. It is bound to be contested, and they are bound to have litigation over it, and they are not prepared to stand the cost. You have only to think of two schemes side by side with property upon them in exactly the same condition. It may be unhealthy or it may be not, but they are both in the same condition. In the one case the local authority is going to use the site for ware- houses and in the other for an open space. The owners of the property in the two areas, although the property itself is of the same value and is used for the same purposes, get totally different amounts of compensation merely because of the use to which it is to be put by the purchaser. That is so inequitable and so unfair in itself that it cannot possibly stand, and that is the reason why the 1919 Act, which was designed to relieve local authorities, will not have that effect because they done not put it into operation. We gave a good deal of time to considering whether we could find any solution which would be less costly to local authorities and less unfair to the owners of property than the 1919 Act, and we finally arrived at a proposal which we believe will meet the case. Our proposal is based upon two considerations, firstly, that if the landlord owns house property which is in such a bad condition that it is not fit for human habitation, he is not entitled to any compensation for taking it away from him, even though he may be drawing rent from it by reason of the great shortage of housing accommodation. The second principle is that any buildings which are comprised in an unhealthy area, though not themselves inherently unhealthy, ought to suffer some depreciation in value by reason of their being there. The fact that they are in that area contributes to make the area unhealthy, though they themselves are not unhealthy. Basing ourselves on those two principles we have suggested that compensation should be based upon the assumption that the present user of the building on the site shall be established for an arbitrary period of 10 years, and for further details of our plan I would refer hon. Members to the Report of the Committee.

I believe if that method were adopted by local authorities, and if they are enabled to share in this annual grant of £200,000 now proposed by the Minister of Health, they can do a great deal to improve the lot of the slum dwellers. I am not saying this is going to be a panacea. I do not pretend that it is, and in our report we emphasised very strongly the necessity of attacking the problem from every point of view, but I believe if this plan were carried out it would do more than all the others put together, not to cure the slum problem, but to improve the lot of those who have to dwell in them, until an ultimate solution can be found. I regretted to hear the observation of the right hon. Gentleman the Member for Platting (Mr. Clynes) that there must be no patching up. I do not think he can realise what the realities of the case are. If it were a question of patching up as an alternative to doing anything else, I should be the' first to say that that was an absolutely impossible ideal to set before us, but what the right hon. Gentleman's observation means, and what the cheers of his friends mean, is not that they are going to get palaces instead of slums, but that they are going to keep the slums as they are and without improvement for another generation. That I know is not what they want, and I beg of them to consider this matter carefully and impartially and see if they cannot give their support to a policy which is designed, and which, I believe, will benefit the people. It is a great mistake to suppose that everyone who lives in the centre of a city is pining for a garden city dwelling. If you talk to people who live in the slums you find that everyone wants to have a better house, but he does not necessarily want to go away from the locality where his work is, where his friends are, where he has become accustomed to the surroundings, and can get his amusements. He does not want to leave them and go to a house for which he will have to pay three times the rent, and pay tram fares morning and evening, and which, although it may include some things he would be very glad to have—a bit of garden, and possibly a bath and other things—nevertheless is accompanied by so many other conditions that he finds it difficult to accept on the whole. If you give him his choice he would rather go on in his present house renovated, repaired, improved, at his present rent, than undertake to go out somewhere in the country, where he is bound to suffer inroads upon his wages without sufficient compensating advantages.

I should like to say a word on the subject of agricultural housing. I do not pretend to be an authority on agriculture, but I am very much concerned about the problem of housing in rural agricultural districts. It is a different problem in the country in many ways. Of course, you do not get slums, but you get a great number of houses which are unfit for human habitation and which in themselves are very much crowded and contain a great many more people than they ought to contain. Very often the water supplies are inadequate and sometimes dangerous, and there is this difficulty, that whereas in the towns the working man has in the past been in the habit of paying an economic rent—and no one ever suggested that he should pay anything else until these exceptional and abnormal conditions of war time occurred—in the country he has not paid an economic rent, and as far as I can see he never will be able to pay an economic rent in any reasonable time because his wages wilt not admit of it. Building in the country is not cheaper than in the town. It is very often dearer. Materials have to be brought a long way, and there may be only one or two houses to be built instead of a great number. You have not the plant or the staff or people who have constant experience in building on the spot, and the result is that house building in the country is on the whole dearer than house building in the town. The position of the agricultural labourer is such that his wages, increased as they have been, are nothing like enough to enable him to pay an economic rent for that house. This is a limited problem. In the towns you have a growing population; you have every year a normal increase in the population which requires more houses, and must have them. In the villages, as a rule, there is no increase of population year by year, but you have a definite, fixed number of houses in the village that are not fit for human habitation, which have been condemned for years, and have not been pulled down because there was nowhere to put the man if you turned him out.

I am in favour of facing the facts, and it appears to me that the realities in this case of agricultural housing are that you have either to give up the idea of improving the houses of the agricultural labourer or you have to subsidise his house. You cannot sit still and do nothing. If you go into the villages and into some of the houses, you would be as. much horrified as if you went into some of the slum houses in the towns. Something has to be done, and you have to make up your minds that it must be in the nature of a subsidy. There are two ways in which that can be done. You can set aside a capital sum and say that you will spend so much on housing in the country. That is the simplest way. You do not require any machinery, and you require practically no staff beyond the local staff already existing. There is only one real objection to it, and it is that if you give a subsidy per house you have no guarantee that the house will be occupied and the subsidy enjoyed by the people for whom you are legislating. In every village you have a certain number of people who are not agricultural labourers, postmen, chauffeurs, and others in receipt of good wages, who are well able to pay economic rents. If it was known that there was to be a Government subsidy in respect of a certain number of houses to be built in a particular village, a guarantee would be required that these houses should only be occupied by people unable to pay an economic rent. The second way of giving the subsidy is by means of a rebate off the rent and that is a proposition which I made some time ago. The best "way of dealing with this subject is to recognise at once that the agricultural problem is quite different from the problem in the town. In the town you may hope to get rid of the subsidy but in the country you cannot. You will, however, only have to deal with the problem once, because when you have supplied sufficient houses and allowed the present condemned houses to be pulled down you will have done with the problem, and it will not increase. On what plan should the subsidy to rent be given? You would find out what would be the economic rent on the cost of the house. You would call that the standard rent, and then you would undertake to give a rebate from that standard Tent to any tenant who could show that his earnings were not sufficient to enable him to pay the full rent. I am not proposing that the local authority should be left to determine whether the man's earnings are sufficient. My proposal is that a scale should be prepared, and approved by the Ministry of Health, which would show in tabular form rebates corresponding to different rates of earnings, making proper distinction between the members in a family who are of earning capacity and so forth.

Does not the hon. Member think that that would be subsidising sweating employers?

I am coming to that in a moment. Some people might say that my plan is difficult, because you never could get a scale. I believe that there would be no difficulty in preparing a scale. The scale would have to be reviewed from time to time, and would have to have some reference to the cost of living; but there are those who are sufficiently acquainted with all the aspects of the problem who could construct a scale of that kind. A more serious objection is the one which my hon. Friend has just put. That is an objection which would occur to everybody. Is not this proposal subsidising wages? Would not such a proposal encourage employers to give lower wages to people, who could thereby get a rebate on their houses? I ask my hon. Friend to consider what is happening now. Is not that precisely what we are doing? Is not that what is happening to the agricultural labourer in the village to-day where he is paying 1s. or 2s. for his house? My proposal would not make any difference in the conditions that already exist in this respect. Certainly it is desirable that wages should be high enough to enable the man to pay an economic rent for his house.

I do not think it would, because there would be only one or two, or, at any rate, only a very few, of these houses, and the proportion of people obtaining them would be small compared to the total population. Even with the rebate the people would probably pay more than they had been paying previously for the house which they had occupied. I do not believe that the objection in question is really a very serious one or that it would make any difference to the rates of wages. My proposal would provide a channel so that when you gave any subsidy from a State source it should be no more than is absolutely necessary for the purpose in view, and you would make quite certain that it went into the right quarter. By this means you would remove what is a crying scandal throughout the country, and you would do something to maintain in the villages the agricultural population which nowadays must be influenced by the condition of their habitations towards that migration into the towns which is so much regretted.

I am not at all impressed with the case which has been presented by the Minister of Health in defence of the policy of the Government. During the early days of the War, when as representatives of municipal authorities we were coming on deputations to the Ministry of Health, then the Local Government Board, it was generally conceded that at that time no fewer than 500,000 houses were required, and, that an additional 80,000 to 100,000 were required every year to meet the normal growth of population. With the cumulative needs that have come since that time there is little room for modification in the figures. It is difficult to find in anything which the Minister of Health has said any justification for the proposal to cut down the number of houses to 176,000, though I recognise that the mere fact that 176,000 houses have been erected or are in course of erection is a step forward, so far as public activities are concerned. The justification given for the modification of the original plans of the Government is that owing to the high cost of building, the financial conditions are too onerous. If these two questions had been tackled as they ought to have been when this work was being initiated, considerably more progress would have been made.

The factors contributing to the high cost of building are many and varied. Some of those mentioned this afternoon have been too one-sided. We have been informed that the high cost is due very largely to the fact that those engaged in the building trade have asked for higher wages, while there has been a reduction in output. If those statements are true, they are only one side of the question. It is well known that there has been tremendous profiteering in those commodities necessary for the erection of houses, and instead of the Government endeavouring to check those operations there are instances in which they have actually assisted them. The price of timber has been a great factor in increasing the cost of houses.

A Government Committee, which inquired into the general question of timber, say that in the years between 1914 and 1920, the increase in the cost of freight for carrying foreign timber into this country was no less than 777 per cent. That is attributed to a ring between Scandinavian and British shipowners. But during that period the Government had a large number of ships in their possession, and if the people of this country were being penalised by the high prices of timber, due to excessive freights, the Government could have used those ships and fetched the timber to this country. Instead of doing that, the Government sold those ships and permitted the plundering of the community to continue. Since the Armistice, the Government have had the timber supplies of this country in their hands. Instead of diverting that timber to building schemes for which it was needed, the Government sold it very largely to speculators, and this Report says:

This applied, not only to joiners and carpenters, but also to the other trades engaged in the erection of houses. In February last year, not more than 10 per cent, of the building operatives at work in this country were engaged upon build-working-class houses. In the ward of the county borough in which I reside, at least one factory has been completed, another has been almost completed, extensions have been made to another, and not a single brick or a stone for a house has been laid, and all this building has been going on and the Exchequer has been losing on the operation. Any price was paid for building material or for labour. Workmen were enticed from housing schemes by lump sum money payments, and by all sorts of fanciful conditions which were outside all the bargains they had from the point of view of their trade union wages. When, in a Bill before this House, a Clause was inserted to prevent that being done, that Clause was resisted by a large number of hon. Members. The very people who were appropriating this building material and this building labour were escaping Excess Profits Duty in proportion to the money that they put into these new buildings. A large distillery was erected in the North of Scotland and a station built at Gleneagles on the Caledonian Railway to serve a famous golf course, at a time when building labour and materials were scarce.

While all these things were done the Government looked on. Then when housing schemes were started, if there was not actual hostility to the guild system and the employment of direct labour there was little encouragement from the Ministry of Health. Case after case can be produced where it can be established that with the guild system and direct labour employed work has been done better and at considerably less cost than would have been possible under private enterprise. Now, after all these agencies which have made for a high cost of production have had free play, the Government decides that it will stand by and do nothing until the trusts and syndicates feel disposed to bring down the cost of building materials. Then the Government will condescend to resume operations. In my experience such a gospel of futility was never proclaimed in this House.

When the local authorities had surmounted some difficulties and had made a move in the direction of getting houses built, they found that they were only at the beginning of their troubles. The Government said, "You must go into the open market for the raising of your housing loans." The Government had swept the country three or four times with all sorts of devices for extracting money from the public for war loans, and possibly had wrung the country dry in that way. But the Government said to the local authorities, "You must go into the open market and compete not only with one another, but with the Government itself, in order to secure what money you can get for financing housing schemes." An important comparison can be made to indicate the very serious financial responsibility of the local authorities. In pre-War days a local authority which borrowed £1,000 for the erection of houses floated the loan at 3½ per cent., with repayment in 60 years. The annual sinking fund and interest charges upon that would be £40 1s. 10d., and the local authority got four houses for the £l,000. The whole of the sinking fund and interest charges were £10 0s. 6d. per annum per house, or less than 4s. per week. Now local authorities have to borrow the £1,000 at 6 per cent, and for the £1,000 they get only one house. Annual sinking fund and interest charges for 60 years on £1,000 at 6 per cent, are £61 17s. 6d., and one house has to carry the whole weight of that financial obligation. That is not 4s. a week, but 24s. a week, and the expense has to be carried over a period of 60 years.

9.0 P.M.

No housing scheme can succeed on such financial terms. We are asked now to await the time when the price of building material has been brought down. Let us assume that the price of a house is brought down from £1,000 to £700. Sinking fund and interest charges on £700 at 6 per cent, are £43 per annum, and when other necessary charges are added the expense of the house will be not less than £1 a week. With some experience of municipal administration I say that we shall not successfully finance housing schemes in future on a loan basis of 6 per cent. Look at the present responsibilities of local authorities. Suppose a local authority builds 300 houses. Its initial capital expenditure is £300,000, but it has a prospective liabilitity over a period of 60 years of over £1,000,000. If you talk of such a liability to some local authorities which need 300 houses, the councillors will be ready almost to commit suicide. The general obligation upon the country has been stated. While we have incurred already responsibility for something like £200,000,000, the prospective obligation over a period of 60 years is from £600,000,000 to £700,000,000, or almost the equivalent of our national debt before the War. That is an obligation for 176,000 houses. What would it be if we built the houses that the country requires?

It is no good members of the Government talking about the cost of building. The real cause of the stoppage of building operations is the tremendous prospective financial obligation, which the public of the country do not understand, and upon which the Government have not the moral courage to inform them. Does that justify, or can we justify, the hanging up of housing operations? The Minister of Health this afternoon seemed to wish to qualify the estimates that have been made as to the number of houses required. He talked about 200,000 or 300,000. How rapidly we are changing our opinions to meet the expediency of the situation! The Prime Minister was speaking on the 21st December, 1920—not very long ago—and this is what he said:

They were to start in 12 months. That has been revised since, I agree. I think the date standing now is somewhere in July of next year.

I never knew such a hustle in the municipal life of the country as that which followed that intimation from the Government. If a local authority sent a letter to the Minister of Health and he did not reply by return of post, they sent a deputation to Whitehall. Now, after all the municipal authorities have entered on their schemes, bought land, laid out streets, put down sewers, and otherwise made the schemes which they embarked upon comprehensive, the Government come along and say that they are to mark time, and that only a certain portion of this work can be done. As far as I understand anything of municipal activity in this country, chaos is the order of the day at the present time. If there is any reduction in the number of houses in the schemes which have been started, the initial cost of streets and sewers will have to be borne by the limited number of houses that are to be erected. The right hon. Gentleman the Member for Miles Platting (Mr. Clynes) mentioned the case of Manchester. The details of this scheme have been passed on to me by a member of the Manchester City Council. In one of their schemes of 2,000 houses, they have erected 100 and they have incurred an expenditure of £100,000 for a comprehensive hot-water apparatus. I am told that the engines and the machinery and equipment have been purchased and paid for, and if my information is to be relied upon, as I believe it is, unless the scheme is carried out in its entirety, this hot-water installation will be useless and will have to be scrapped. Another scheme in Gorton area involves the erection of 1,500 houses, of which 210 have already been erected. A similar installation is intended there, and it has cost £60,000. It has been manufactured to meet the specified requirements of this particular scheme and the requirements of the Manchester Corporation. But to secure its efficient working the scheme must be complete, and if it is not complete, it puts out of action the mechanism which has been purchased.

Does the hon. Gentleman not think that to a native of Manchester it is very unpleasant to have published these details of the utter in efficiency of the Manchester City Council?

I do not know anything about this scheme except the information passed on to me verbally by a member of the Manchester City Council, and it should be reliable. It has been partly endorsed by the right hon. Member for Miles Platting, though he did not go into details, as I have done. Putting the two statements together, there is evidently a considerable measure of truth in what I have said. Then take the case of the purchases of land. In one town in this country—I think it is Northampton-land for a housing scheme has been purchased at the rate of £1,400 an acre, and in Derbyshire land has been bought at £1,200 an acre for the same purpose. If the local authorities concerned had suspected that any portion of this land was not likely to be required, they would not have gone to such a figure. In passing, I wonder why the Government of the day permit local authorities to be charged £1,400 and £1,200 an acre for any land in this country which is required by the public for public purposes. Many local authorities in the country have embarked upon large schemes. Bradford needs 10,000 houses, and I gather from a public report that there are 20,000 families in the City of Birmingham without a home of their own, and when I look into the figures in regard to London, I find that the situation is a staggering one. In 1919, there were 365,000 persons living in houses which on account of age, defective construction, decay or dilapidated conditions, were unfit for habitation. A large number of these were only fit for demolition. All the evidence points in the direction of the erection of houses on a large scale being necessary. There is another side to the question. We have heard a great deal about the training of ex-service men. An arrangement was entered into by the trade unions to enable that to be done and on 31st May this year, 5,573 ex-service men were being trained in the different grades of the building industry as masons, bricklayers, joiners and carpenters. In almost all these cases, the Government are under an obligation, that during the early part of this training they shall undertake a certain financial responsibility. Having regard to the stoppage of building operations, what are we going to do with these ex-service men? Is their period of training going to be wasted or are they going to be put into the industry to displace expert men? All these considerations suggest, that despite the difficulties which I mentioned in the earlier part of my observations, there is no justification for the Government holding their hand. What should we expect the Government to do?

In 1915, during the War, there were certain articles which were required, and which were excessive in cost, and the Government instituted a system of costings, with the result that, when they found they were being charged at too high a price, the Government themselves set about constructing these particular articles. They even set up factories for the purpose and employed women and girls to do the work, and the result was a tremendous saving to the community, as is well known to Members of this House, in connection with shells and other matters. It is proved up to the hilt that the public are being compelled to pay higher prices for building materials today, and for some considerable time past, than they ought to be called upon to pay, and what could be done for shells in 1915 can be done in respect of building materials now, except that it can be done a good deal easier. The Government could put their finger on to the spot in any part of the country where the best stone, the best clay for making bricks, the best sand and lime and slates can be found. All these places are known to the Government, and they can go to the Employment Exchanges, where they will find hundreds and thousands of men who are drawing unemployment benefit, anxious for a job, ready to dig for sand, or lime, or clay, or stone, or slate, and we suggest that what could be done for shells in 1914 can be done, and ought to be done, for building materials in 1921.

The Government have a Department of Building Materials, which is a legacy of the Ministry of Munitions.

We have not heard of much material finding its way from the Government Department on to building schemes in the country, but nearly £12,000,000 worth of timber and furniture have been sold by Government Departments, very largely to private enterprise. We have only to scratch the country here and there for sand, and lime, stone, and brick, and slate, and there are thousands of men at the Employment Exchanges ready and willing to assist the Government in that work, and we put that forward as a constructive suggestion for the Government to act upon.

The financial aspect of the matter is a much more difficult one, because the Government themselves are engaged in financial legerdemain, hanging up the debt which they ought to pay between now and 1925, converting it into 1961 debt, making £600,000,000 worth of debt into £1,000,000,000 worth, if the whole of it is converted. What can poor local authorities do, when the Government themselves are forced to such expedients? Bring down the cost of houses to any extent you like, but housing schemes cannot be successfully financed on the existing basis, and some other method has got to be found. I have here a memorandum, the author of which is the city treasurer for Birmingham, and he gave it in the form of a paper written for the Institute of Municipal Treasurers and Accountants. It is called "Some Financial Aspects of Housing Schemes." The experts in municipal finance have had this factor under consideration, and the opinion of a mere layman like oneself on this matter is very small indeed when compared with that of these financial experts who are engaged by the local authorities in the country. If the Minister of Health is not familiar with the contents of this publication, it is worth his perusal. I am not saying that it conveys a great deal, but it makes certain very definite suggestions as to what could be done by representatives of local authorities working in conjunction with the Public Works Loans Commissioners, and it also makes a definite suggestion in respect of a national housing fund. I commend this paper to the consideration of the Ministry of Health, in order that they may be seeking enlightenment as to how we are to finance these housing schemes.

Some reference has been made to the question of slums. I am not out for mending slums; I am out for ending slums, and there are more slums in this country than is popularly supposed. There are perhaps many hon. Members who have never been inside what is recognised as a slum, and above the slum standard, if I may so call it, in many of our industrial towns there are large areas of cheap cottage property but little better. This is one of the very serious problems of the future. With the development of the factory system in this country we had the development of house production on a large scale, erected in order that they could be occupied at a, low rent, a rent which would be reflected in the low wages that the factory owner would pay. Cheap rents, cheap houses, and cheap food was all the cry of that generation, and in every industrial area in the country these houses are to be found. They have been standing for 50 or 60 years, and some of them longer. They have been paid for by the occupants a dozen times over in that period, and most of them to-day are costing more in rent than was charged when the houses were first erected, while the rates for those houses at the present time are higher than they have ever been, despite the fact that they have been paid for a dozen times over during the period of their life. We hear about this committee which is to recommend economy in housing, and we are to have economy on the lines of smaller houses. I do not want to see any smaller houses than those we are getting under the Ministry of Health scheme. The by-laws in our own borough which were imposed upon a private builder were for rooms 9 feet high from floor to ceiling, but under the Ministry of Health scheme we have had to make it 8 feet, and we were told in Whitehall, in a room nearly as lofty as this Chamber, that if we made these rooms 8 feet 3 inches we would not get the Government grant. So we had to go back home and tell the corporation that we had failed to secure that concession of 3 inches, that 8 feet it had to be, no more and no less, or else we should not get the financial backing of the Government. I am not in favour of smaller houses. The only penalty I desire to impose upon any advocate of smaller houses, whether it be the Minister of Health or his Committee, is that they shall go and live in them.

We have got to visualise this problem in its wider aspect—these houses, which exist in our industrial towns, mean streets end upon end, and every house alike— with the monotony, which comes from dwelling in these towns, hampering the physical and mental development of the people. But many of these houses are well Kept, though hundreds of thousands of them do not hold that minimum of domestic comfort which people in these days are entitled to expect. Hundreds of thousands of these houses do not give the minimum of public health that modern standards seek to enforce. The doctor is always on the doorstep of these houses.

Hundreds of thousands of them have only one living-room and a couple of bedrooms. The whole of the family's possessions and treasures are in that room, and such houses are driving young people away from the domestic hearth, filling the street parade on Sunday and making contributions to our pubs and clubs. That is what these housing conditions are imposing upon our people engaged in industry. Hon. Members can have no idea of the effect of these housing conditions upon the lives of the people; no one can have, who has not experienced the effect which these harassing conditions do have. I subscribe to a good deal which has been said this afternoon in respect of the higher needs of the housing of the people, but far and away the best pronouncement I ever heard came from His Majesty in a speech to the representatives of the local authorities of the country on 11th April, 1919. This is what His Majesty said:

I must remind the hon. Member that there is a rule of this House that His Majesty's name is not to be introduced for the purposes of Debate.

I was not aware of that condition. I thought such an expression of commendation—

It is not my intention to deprecate the hon. Gentleman's action, but the rule subsists, whatever may be the intention of the hon. Member.

I am afraid not. I have no doubt that the intention and effect of the hon. Member reading it will be perfectly harmless, but the rule exists and, as a matter of precedent, I cannot allow it.

I must apologise for having encroached upon the rule. I was not aware of it. I will conclude by saying that if we are to secure any improvement in the moral tone of our people, if we are going to give intellectual development an opportunity, if we are going to move in the direction of securing the highest standard of physical efficiency for our people, the housing of our industrial population needs to be attended to. We must keep this fact in mind. The housing problem is a working-class problem. Villadom is safe. There is no housing problem except as it affects our industrial population. From that point of view they are entitled to call upon the generous spirit of those people who have never known what the housing conditions of our industrial population often are. I would urge that one of the important necessities of our time is not to slacken our housing operations, but to endeavour to surmount difficulties which are many and which are powerful. We desire to preserve all that is best in the democratic sentiment of our national life.

I feel that possibly I may be more unfortunately situated than some Members in that I openly admit that at the last General Election one of the chief planks of my platform was that I would do all in my power to remove slums and bad dwellings. If I had not taken up that position, I should have felt happier than I do to-night. Although I am fully aware of the vast importance of economy, I am bound to admit that when we come to the question of the housing of the people, we have got something to consider as well as economy. It is a matter of life and death. Some Members have spoken as though they had not seen any slums. I venture to think there are not many Members of this House who have not visited slums in their constituencies, and become aware of the state of affairs in these districts.

I have visited houses which have impressed me most deeply with the fact that I cannot imagine how people live in them at all with their rickety stairs and wretched conditions. But I know they do, and I have wondered how they get people downstairs when they die in these houses. I have also had the advantage of a chart very carefully got out by a medical officer. Some hon. Gentlemen may laugh at these facts, but they are very serious and impressive. I look at the chart which this medical officer has drawn up with little black marks for tuberculosis cases. I have seen in the better-class districts very few of these black marks, but when you examine the slums you find the marks practically jostling each other, so closely are they packed. Under these circumstances, I do say that we have a question of life and death, of decency and indecency, because you cannot have decent people without decent houses. I do say we must approach this question, not from the point of view of pounds, shillings, and pence merely, but from the point of view of humanity also.

I have always been a great admirer of the late Minister of Health, and therefore I did feel a little apprehensive when I heard of his resignation, because I was rather afraid of a great change in the housing policy. At the same time, I have been much reassured by the speech of the Prime Minister. I do not think there is anyone who has more at heart the welfare of the working people than the Prime Minister. As I listened to his speech. I was very much comforted in my mind, and I felt perfectly certain that, although there might be a change of Ministers, there would be an endeavour made by the Government to continue its housing policy. There is only one question I should like to put to the right hon. Gentleman. I am very anxious that we should keep good faith with those local authorities whom we urged to do all in their power to promote housing schemes. I am a little bit apprehensive—though I may be wrong— but I understand that no financial responsibilities will be taken by the Ministry of Health except in cases where the actual contract for houses have been entered into. Is that so?

I made it quite clear in my speech and in the long statement which I read to the House that the Ministry of Health take responsibility for all the expenditure incurred by local authorities which has been incurred with the consent of the Minister of Health—for land, roadways, sewers, architectural fees, and the rest of it.

I am very much obliged to the right hon. Gentleman, but I am not certain whether I made myself clear. There is the question of compensating authorities for money actually spent: those who do not continue the completion of the scheme in the direction of building. My point is this: From a business point of view some local authorities rushed in. They entered into a large number of contracts without having any regard to the price or the time required for building the houses. I understand that these authorities will receive, if the houses have not been built, but the contracts have been entered into, not only the money they paid for the land, but other expenses, and will also receive a subsidy for building the houses themselves. Therefore such a locality or corporation will benefit accordingly. On the other hand, take a more businesslike corporation, which said: we will acquire the land, lay it out, and make provision for building a certain number of houses, but we will not yet enter into contracts for building the houses, because of the high prices of things; we will wait until the markets fall—as anticipated, and as they have fallen—I say that I understand that that corporation will not receive any subsidy for the houses that they would have built in the ordinary course of events, because they have not entered into the actual contract.

That seems to me very unfair to these authorities, because it will mean that the people in their neighbourhood will lose the building subsidy given by the Treasury for schemes which have been entered into.

My right hon. Friend says it is a case of the early bird. The unfortunate part of it, the part I cannot make out, is that they are now waiting until they get the subsidy from the Government. I should myself have made an earnest appeal, if it were possible, that, at any rate, some consideration should be shown to those local authorities who, in my opinion, were carrying out the very spirit of the wishes of the Ministers of those days in making preparation for the building of houses, while at the same time not entering into contracts for the building of a lot of houses until they were better circumstanced.

I could not help thinking, whilst the House was enjoying the dialectical duel between the two chief protagonists in this Debate, of the hundreds of thousands of people who tomorrow would read the Debate while perhaps sweltering in overcrowded houses. What consolation would it be to them to know that the Prime Minister had retorted on the ex-Minister of Health that he had suggested 300,000 houses whilst they were only going to build 200,000? What these people desire to know is where are the 500,000 houses promised by the Prime Minister himself in 1918. A question might very properly be put to the Government as to when they are going to build that larger number of houses which they themselves said were absolutely necessary in order to provide proper places for the people to live in. I am afraid that the people who are living under these overcrowded conditions will feel bitterly disappointed at again having their hopes out off. "Hope deferred maketh the heart sick." The Prime Minister and the Minister for Health both say we are committed to contracts for all the houses that can be built during the next 18 months. That, as I understand, is their chief line of defence for the change in the programme which they announce. Do the Members of this House, as practical men, in their heart of hearts, really believe that that can possibly be true? Does anyone really think that if we get together the means of construction by mass production, as we did during the War, that it is not possible for one single more house to be built than the 176,000 which have been contracted for. I can only judge by the knowledge of my own district and constituency.

I know that there to-day, whilst we are building some 700 houses, most of which are nearly completed, we have hundreds of bricklayers out of work at the Employment Exchange, we have scores of joiners, and we have plasterers; yet the right hon. Gentleman refused the other day to sanction the local authority in my district starting a further 300 houses. It would only have made a 1,000 out of the 3,000 which, answering his own Department's request, we in 1919 said were absolutely necessary to make up the shortage then existing. I quote this case because I believe what is true of one large industrial district in the North is equally true of other districts. It is not true, taking the country throughout, to say that you could not build more houses during the next 18 months than the 176,000. Possibly you could not build the 500,000 which the Prime Minister said in the Debate in 1920 —which has been quoted—were absolutely necessary, but, at any rate, you do not need to draw a hard and fast line and say: "We will not build a dozen houses more than the 176,f000." The psychological effect alone would be worth it. I appeal to the Minister because I know he has a sympathetic Leart, and is wishful to do his best in this matter. He said that outside he got a lot of hard criticism. Inside the House we know he would do more if he could; I think even now he will possibly be prepared, when he sees the result of this night's Debate, and hears the appeals made to him and the facts and figures put forward, to see if he can do better than he says. He tells us that he is going to be perfectly generous, frank, and fair to the local authorities because he is not going to mulct them in more than a 1d. rate. Let him be generous, frank, and fair—to quote his own words—to the people who are living in the localities like the one I have mentioned and who want these houses. It is all right relieving the local authorities of financial obligations, but we know the appalling housing conditions of the people. One would almost gather from the way in which this matter has been treated from the Government Bench that they do not realise the conditions under which millions of humanity are living to-day.

I am going to give one or two illustrations from my own district, because we are in a unique position. A house-to-house canvass was made and over 22,600 houses were visited. Schedules were filled up, and this was all done as a work of love which has taken months to complete, and the figures have been verified. These are not averages or conclusions drawn from small investigations, because they apply to the whole borough of Middlesbrough. We find in that town 4,558 houses are badly over-crowded in the sense that the people in them have not ordinary decency. A bedroom standard has been taken providing for the sexes to be kept separate, because under other conditions ordinary morality is not possible. The Minister of Health now says, "We are not going to allow you to build another house for the next eighteen months." We have in Middlesbrough 2,325 houses with two bedrooms, which have not less than seven, and in many cases have fifteen people living in them. There are thus 20,000 people living under conditions which are absolutely insanitary, and conditions which are bad for both morals and decency.

In addition there are 2,792 houses, mostly two bed-roomed houses, occupied by two families. The conditions in such houses are bad enough with one family, but what must the conditions be with two families in them. The ordinary wear and tear of life is bound to be almost intolerable under those conditions. That is bad enough when the returned soldier comes home, and finds that after all the promises which have been made he is compelled temporarily to share one room with his wife and children, but it becomes intolerable when it is continued indefinitely year after year. That is the prospect held out to him by the Government. Here is a small town of about 120,000 inhabitants, and there are 3,000 families who have to share houses, and where the majority have only two bedrooms The people are so crowded together in such conditions, that in these circumstances it is worse than folly, it is criminal madness to refuse to build any more houses. In my own town there are applications for 3,500 houses. I wonder what will be their feelings when they read that not a single house wall is going to be put up. What will they think about the promise of better houses?

The right hon. Gentleman said the local authorities have their responsibilities in these matters, and that a lot of this trouble was due to housing conditions before the War. That is perfectly true, but what was the Government's programme? They announced a new policy in 1918, and they said, "We are going to pass an Act in 1919 which will enable local authorities to provide houses, and we are going to limit their obligation to the extent of the burden of a penny rate." That is the policy of the Government which we ask them to carry out. This delay is only making things worse. The right hon. Gentleman said prices were soaring up, and it was folly to build under such conditions. May I point out that prices began to fall some months ago. It has been suggested that we cannot build a working-class house under £1,000, but I would remind hon. Members that my town council in Middlesbrough submitted a scheme for 300 houses which ran out at £640 per house. We are anxious to build these houses. The land has been laid out, the roads have been made, and the sewers put in, and if you refuse these 300 houses, it means that the money which has been expended making roads and sewers will be wasteful expenditure.

I appeal to the Minister of Health to reconsider this matter, and to see, in view of all this overcrowding, whether he cannot soften his heart and realise that it is wise economy in the end to prevent that burden of ill-health which is bound to follow if you perpetuate this overcrowding. How can you have healthy conditions with 12 or 13 people living in one room, as is the case in my town, with people sleeping, feeding, washing and doing everything in one room? How can you expect the children under those conditions to grow up in a healthy state? I join with those who ask the right Eon. Gentleman not to make, this hard and fast line in view of these terrible and appalling conditions. This is not merely a question of slums. In every residential district in my town you have hundreds of cases of two families living in one house. I do not believe those who have houses of their own realise what is going on in thousands of these cases.

There are millions of people throughout the country to-day living in overcrowded conditions. Here is one particular case in quite a respectable district in my town. There are 14 people living in a two-bedroomed house. The parents live in one bedroom, with girls of 21 and 16, and a boy of 11 sleeping in the same room. You have in another bedroom an uncle and his family of two sons. You have sleeping in the bath room three adult sons who can barely get into it. Sleeping in the parlour kitchen is. a married son, his wife and child. Fourteen people are crowded together in a two-bedroomed house, and that is the sort of thing the Prime Minister says must go on for the next two years because we cannot build more houses.

I am sure my constituents will be delighted to hear that when the Minister for Health refused to sanction our scheme for 300 houses the other day he did not mean what he said, and that we are in fact going to get more houses. Here is another case of three families, comprising 10 people, in a two-bedroomed house. The father, mother and two adult daughters are sleeping in the same room. The father said to the Investigator, " I am ashamed that I and my wife should have to sleep in the same room as two grown-up daughters." In another bedroom are the married son, his wife and child. Downstairs in the living room a married daughter and her husband, and in the same room another man sleep. Two married people with a man in the same room! Both these sons fought in the War. One may imagine the language they used when the Investigator went round and found this state of things existing in my town. [An HON. MEMBER: " Your town!"] In the town I have the honour to represent. I do not want to weary the House, or I should go on citing case after case investigated personally; I could take any Member of this House to see them; it is not a question of averages or of drawing conclusions from a few cases, but it is a question of individual investigation made of all the houses in the town I represent.

10.0 P.M.

The Prime Minister said, "We cannot do any more than we are doing." But these cases I have referred to are typical of hundreds of cases in every part of the country and if the right hon. Gentleman is going to make a hard-and-fast cut, as is suggested, then he is merely playing with the situation. In the first instance the Government decided on the uneconomic policy of building 500,000 houses after the Armistice. They knew they could not build the houses at a price which would enable them to fetch an economic rent. We in this House were perfectly well aware of that fact when we passed the Housing and Town Planning Act, 1919. But we realise that this was one of the burdens arising from the aftermath of war, and I submit that the House with its eyes open in 1919 agreed to carry on this uneconomic policy for a period of time until there were a reasonable number of houses for the men coming back from the War to occupy. This was done in the interests of the well-being of the land. It was an avowedly uneconomic policy to be carried on until the appalling congestion and overcrowding had been relieved. It was a wise insurance policy which the Government entered into with their eyes open. It was an insurance policy against unrest, social disturbance and even worse evils in order to make some provision for the tremendous and appalling amount of overcrowding. It is equally necessary now to continue this uneconomic policy although it should cost another £5,000,000 or £10,000,000 a year, until we have relieved these appalling and immoral conditions we are forcing our people to live under. It is no good saying we have to economise on this matter when we are spending millions on other things. Cut down the armaments expenditure by £10,000,000 or £20,000,000 and provide better houses for the working classes. Cut down the expenses in Palestine and Mesopotamia. We talk of our obligations to the Arabs. Have we no obligations to the men who went and fought side by side with those Arabs. I say our obligations to our men at home, and to humanity, are greater than our obligations overseas, and I appeal to the Minister not to insist on this hard-and-fast line, not to say we shall have 176,000 houses and no more, not to tie himself down to any figure, but to treat each application put before him on its merits, and whatever town can show it is suffering under these appalling conditions, then until they are relieved do not stop carrying out the policy, which was the policy of the Government in 1918, the policy of this House in 1919, and a policy which this House, as a whole, has not yet-revoked.

During the past two years it has been my privilege to take the Chair in the Housing Committee of the London County Council, where, I may say, with practically no exception, we have had the unanimous assistance of all parties in trying to deal with this most difficult problem of housing in its different phases in the biggest-municipality in the world. It, therefore, seems to me a most pitiful thing that we should have speeches such as that of the hon. Member for Middlesbrough (Mr. T. Thomson), or such as have come from the other side of the House from hon. Members who simply embark on heroics or platitudes without coming forward with any really constructive proposals that will enable us to face the facts of the situation. I am not going to occupy the time of the House with a mass of detail which, I have no doubt, would interest it as intensely as it has interested me during the past two years, affording, as it does, a big field of inquiry. I want to take up a special point put by the hon. Member for Middlesbrough, because I do not give that hon. Gentleman one inch in the matter of the keenness we both feel in this question. I believe every Member on this side of the House is equally keen on this subject, and is desirous to get rid of these slums and overcrowded conditions. We have them here in London, and we want to wipe them out.

The hon. Member suggests that the way to do it is to pour out more thousands of pounds to build houses here and there, and to present them to the working classes. Does he believe that is the way to tackle a working-class problem? Let me draw his attention to the analogy of the Poor Law. The Poor Law started in 1834, under just such conditions as have Been adumbrated in this instance by the hon. Member for Middlesbrough. We were to provide a magnificent scheme by which no people in the future would be destitute, nobody would starve, everyone would have roofs over their head, food to eat and clothing to wear, doctors to attend them and nurses to look after them. It was a splendid scheme which was brought up in 1834, but what has happened? The British working man, true to his character, fought against the idea of being an object of charity under the nation. He said, " We are branded as being dependent upon our fellow workers, we are a drag on the community, we object to the name under which it is being done, we object to the name of pauper." There is nothing in the ordinary word '' pauper " to object to. It is what it signifies. But the British working man objects to being a drag on other people. He objects to being supported by his fellow workers and by the rest of the community, and that has been the reason why the Poor Law system of this country has fallen into disrepute. Men would not be branded as paupers and would not be a drag on the community. So far as London is concerned up to the time of the War, under the London County Council, we were practically self-supporting in regard to the housing question. Just before the War there was legislation, to which I need not refer now, which put a stop to speculative building. It made it no longer worth while for the speculative builder to carry on his trade. [An HON. MEMBER: " Hear, hear! "] That cheer illustrates the ignorance of the hon. Member, because it was the speculative builder who, when properly guided and regulated, did the building. The hon. Member and many of his friends, and, I am afraid, the greater number, from what one hears, of what is supposed to be the representatives of the working classes, are always asking for exactly the same thing in the matter of housing as was done in the matter of Poor Law in the last century. If you are going to give sops in this sort of way, exactly the same feeling will arise with regard to houses, and people will say, " That is a Government house; I would not be found dead in it." They say this kind of thing already. Let us not take such a gloomy view as the hon. Member for Middlesbrough and others take of the possibility of making houses a remunerative proposition. Unfortunately, we are very often misled by the complexities of the urban situation, and do not analyse the problem to the bottom, but, in the country, under the simple rural conditions, you can very often find the clue, but only the clue, to the industrial conditions of the town.

In my 15 years' experience as County Medical Officer of Health I had to take up the question of housing, and I took it up with very great vigour and very little support. I remember perfectly well the first time I had to face the financial question of working-class houses, and in a long report, as the result of many days' work with the County Surveyor, we had a scheme, which was adopted by the county council, for a certain village called Chipperfield, in which we were to make houses self-supporting at a rental of 3s. 6d. a week, which was considered very high at the time; a five-roomed house cost then about £210 apiece. That was a self-contained scheme. There were several other schemes like that in the country, and I came across one the other day simply through opening a bazaar in my constituency. A gentleman, who was unknown to me, proposed a vote of thanks, and referred to certain houses that had been erected in this way. They are already a self-supporting proposition, and doing extremely useful work. I say that is the ideal to which we want to get back, and if the hon. Member for Middlesbrough and his friends really want to help the housing problem, so that it shall be in conformity with the wishes of the working classes, they should look to that ideal that was possible before the War, and look to the future, when we may get back to the ideal. It is certain that we cannot get back to it at once. I am perfectly certain that if you go on building Government houses at £1,000 or £800 apiece, without regard to getting good value for your money, you will never get back to the system to which you want to get back. I ask the House to make up its mind clearly on this point. It is, to my mind, the only real distinction between the two protagonists at the beginning of this Debate. If you are going to keep on these Government contracts, if the Government is going to see this scheme through, whatever it costs, if our builders are going to be sure of their profits, and labour be sure of its wages, at whatever cost, it is inevitable—and it is not casting stones at either side to say it—that they will naturally put as little work into it and get as much profit out of it as possible.

That has constantly been happening under our London County Council scheme. We have had, I think, the most perfect form of supervision, because we were the biggest authority, and could afford to pay for it. Yet, in spite of that, let me give one instance of what happened, even under those conditions. In one of our contracts—the first post-War contract—at the suggestion, I think, of the Ministry of Health, we decided to take on what seemed to be a very up-to-date scheme, that is, to let the National Federation of Builders do the contracts themselves, and they appointed two firms to do the contracts. It was at Roehampton, and the figures were the first on which we were able to make a definite statement of the cost of the housing scheme. It was submitted to the Ministry of Health, and was the basis of the cut last December. That scheme is going ahead now, and is doing very well, but those houses worked out at an impossible sum. Even a five-roomed house works out at something like £1,200, and, with cost of site and other things, up to £1,700, involving the State in a loss of £98 for each house, in addition to a rental of 18s. 6d. for each tenant. The Government saw that that must come to an end, and told us so, and we quite recognised it. What is the position? The contractors have got their contract under what seemed all possible precautions, with a " thistle and carrot Clause," under which loss is guarded against through increase of wages and material, and yet, in spite of that, the guarantee the builder has to ask against possible contingencies in the early stage is so great that we can actually allow him to get out of the contract by paying him £300 for. every house he is let off. I believe it would cost us something like £400 or £300 less to build now than when we originally made the contract. It seems that these contracts in the past have been subject to a great deal, not of profiteering, but of safeguards of one kind or another.

That must come to an end, and it is only by the sharp cut my right hon. Friend is now giving to housing that labour will realise it has got to put in work, as well as employers have got to take a diminished profit. With these two things together we may possibly get on to better conditions, and it is up to the local authorities to produce their schemes under which such loss as has to be borne will be borne to a considerable extent by the local authority, who will thereby be interested in seeing that both labour and employers are giving good value for money. That is the conclusion, I believe, of all who have worked at this problem. Before I sit down I should like to make just three points on the question of slum areas. In the first place, reference has been made to the extremely useful report of the Departmental Committee of which the hon. Member for Ladywood (Mr. N. Chamberlain) was chairman. The future of the slum problem depends upon various suggestions which are made in that report, which I hope all hon. Members who are interested in the housing question will read. Those suggestions include the system of amelioration and of improved management. It is perfectly true, as the committee consider, that you can do a great deal in the way of amelioration in the case of houses that have been condemned. We have an example of it to-day in the Tabard Street area, owing to the delays in dealing with that area which were caused by the War. But you cannot depend upon that alone for any thorough solution of the problem, and if the Minister is proposing to depend upon the system of amelioration for the treatment of slum areas, I cannot possibly support him. I can only support his reference to amelioration, and that of the hon. Member for Ladywood (Mr. N. Chamberlain) if they recognise that it is merely patch-work, and temporary patchwork. You can use amelioration for extending the life of a house, but the life of a house which has been condemned by the medical authorities on proper grounds is not very great.

Improved management is always good. Friendly management, under the system of Miss Octavia Hill and other such systems, is always good, but even these things are but temporary devices for delaying the evil day. They are merely temporary treatment. I hope we shall apply the radical treatment as well. There is one point which has not yet been made. In dealing with the slum areas in London, the County Council have come to the conclusion that you cannot deal with just a little block of houses here and another there. To deal with the matter properly you must deal with a sufficiently large area. We have come to the conclusion that you cannot deal with a slum area upon sufficiently correct lines unless you take a minimum of 10 acres. Now 10 acres is a huge area for London insanitary property, and to deal with it you must have the qualifications that have been suggested by the right hon. Gentleman, namely, some power by which you can develop by degrees, under which you are not compelled to purchase and develop rapidly, and which will enable you to lay your plans for the area and develop it gradually as the property comes into the market and as you can deal with it. It must be done gradually, but it must be done completely.

Perhaps I may be allowed to mention that I have just one little quarrel with the right hon. Gentleman over one of the recommendations in the Report of the Committee on Slum Areas. He used—I do not think it was intentional—a phrase which might be open to exception in the light of that Report. He said that it was no use providing garden cities for insolvent people. [HON. MEMBERS: "Hear, hear!"] I regret to find so much ignorance in the House on the question of that Report and of the Committee's conclusions on the problem of insanitary areas. I hope that those who said "Hear, hear!" will read that Report, which is quite short and is very instructive. It says quite clearly and definitely that the only way in which you can really get a final settlement of this difficult problem of industrial housing in the long run is on garden city lines, and you have it here before your eyes. Everyone who goes along a main line out of London sees that factories are developing along those main lines, and everyone knows that it is the interest of all classes —workers as well as others—to get out of London if they can, and to get some approach to country life. The only proper system for the future, when it can be eventually reached, is to harness those two natural processes together, the process by which the factories are being built along the railways, because they can get cheap land and good transport, and by which the people are geting out into the country, too. The two must be brought together. The Minister has said there is no compulsion on the employer to make any provision for the workmen, and the worst instance I have heard of in recent times is the Government and its works at Chippenham, where there was the disgraceful result of having not only the overcrowded little villages round about, but you had special trains bringing workmen out from London every day to get to the depot to work. There ought to be compulsion on employers to make some provision for their people when they build new factories. If only that can be done the two can be linked together, and then you have the nucleus of what must be called the garden city, by which you are going to get the factories and the residences together planted out under new conditions along the lines of railway out into the country.

The hon. Member for Spen Valley (Mr. Myers) said the high cost of building was largely due to material. Every bit of material used in building houses, even sand, is manufactured. He says if you scratch the ground you can get sand and lime and clay for bricks. Material is costly to-day simply because of labour and nothing else. Whether it is the material it is built of or the wretched little house itself, nine-tenths of the cost is the labour, and that is why you are up against the proposition of these houses costing from £800 to £1,000 apiece. They are not worth it or anything like it.

We do not charge it at all. It is because the people do not work. They do not do a fair day's work for a fair day's pay. I shall continue to emphasise the point till we get housing down to a proper figure. The hon. Member said many of the houses are too small. Are rooms 5 ft. 7 in. by 6 ft. 4 in. fit to sleep in? Put a man my size in a room like that. Put a bedstead in it, and you cannot get in. It is absurd to build such houses. I have pleaded repeatedly for houses to be of a larger superficial area. It costs very little more to make a larger room, but it is important, if you are not going to have these houses turned into slum houses in the very near future, that you should have decent rooms in them. The right hon. Gentleman has only to go to Camberwell to see the houses which have been erected by the Office of Works. I cannot get into many of them. The doors are so close that you cannot get round them. I am perhaps a little over the average size, but there are a great many people of my size, and they want to live in houses, and if you are going to build houses they should be such as people can live comfortably in. It is a scandal to pay anything like £800 for houses of that description. Four hundred pounds is their value. We shall, as was stated by the hon. Member for Ladywood (Mr. N. Chamberlain), have to scrap at least half the cost of these houses before we get back to any economic conditions. The right hon. Member for Shoreditch (Dr. Addison) said that private enterprise could not take on the work. I hold in my hand a copy of the OFFICIAL REPORT of the proceedings on the Housing, Town Planning, etc., Bill of Tuesday, 13th May, 1919. I remember pleading with the Minister to give private enterprise an opportunity. Private enterprise at that time had miles of streets laid out, with sewers in, all ready for building upon at once. In a district in which I was interested a particular firm offered to put up 600 houses before December, 1919, if some subsidy was paid. The subsidy was on these lines: the house pre-War had been costing £300 to build, and this firm, a very excellent firm, estimated that it would cost them £600 for each house. They asked that £150 should be found on each house as a subsidy, and they agreed to abate from the rent £7 10s. per annum for the use of that £150. The tenant was going to reap the benefit for a period of years. The late Minister of Health or his people said: "No, the community must own the houses." There is the Socialistic idea behind the whole housing policy from start to finish.

Will the hon. Member quote the answer I gave? I never gave such an answer, and I ask the hon. Member to quote it. I never said anything of the kind.

I was authorised by the local authority to go to see Sir James Carmichael, and I went with the surveyor of the authority. We took the plans of these houses and all particulars, and after a lengthy discussion the plans were left. We went back on a subsequent occasion and the answer that was given to us was "No, the houses must be owned by the local authority."

That was under the terms of the Housing Act. That was provided for in the Housing Act.

That interruption is unfortunate, for this was in April, 1919, before the Act was passed, when the Bill was before the Grand Committee. Since then similar houses to the 600 have been built by the same firm of builders at a cost of from £900 to £980. If that has been done in the rest of the country no wonder that our housing policy has been a gross failure. I pressed this on the right hon. Gentleman on many occasions. I spoke to him about it when we were in Committee. He said that he would endeavour to meet this question of private enterprise. I said:

"Most important of all. Private enterprise should be enlisted to supplement the efforts of the local authorities. Every agency which can supply houses should be stimulated and encouraged. Red tape should be cut. Preconceived ideas have not brought us the houses which we want."

That is the whole reason of the failure of the housing policy in my opinion. From the commencement I said that if you do not bring in private enterprise you are bound to fail. The local authorities would be years before they could get into their stride. Even to day they have not got into their stride. One hon. Member has appealed that they should have an opportunity because they have acquired the land and made arrangements for roads and sewers. But the Government have not put the local authorities and the private builder on fair lines. They have put the local authorities in a preferential position, a position in which they have no responsibility, and in which it does not matter to them what the houses cost; because they have only got to pay a 1d. rate; and it is against human nature when you find that you are going to get something for nothing to refuse to take that something. The right hon. Gentleman said that private enterprise could not deal with the matter, but six months afterwards he brought in a Bill for a subsidy, not a subsidy of £150 but a subsidy which has gone up to £260. I feel sure that the Government are taking the right course now with regard to housing. The moment they called a slight halt, down went the prices of houses.

Houses went down in price, and I hope that they will continue to go down until they get to a reasonable price. I think that it is an object lesson to people who are not doing their share in the building world. I hold no brief for builders or working men. They are both to blame. The builders should have been satisfied with a fair profit, and the workmen should have given a better output. Houses are coming down to-day. The only people who are hanging fire now are bricklayers and plasterers, because there are not sufficient of them to go round. You cannot get your houses plastered. I have been round the country, and have seen a great many houses built and slated in which no plastering has been done. You are justified in calling a halt until you get those works finished. I believe that it is the right policy, that you will get more houses by it, get them more quickly, and I hope that the Minister of Health will continue that policy. I hope he will see that we get value for our money. In the past we have not that.

I admit it is no good indulging in merely destructive criticism. I have a constructive idea with regard to this matter. The hon. Member for Spen Valley told us that 6 per cent. was too-high an interest' to pay on Housing Loans. We have spent a lot of money on these houses. Let the houses be revalued. Although you may have spent £1,000 or more on each house, you cannot put a value of more than £650 on it today. Sell the houses to the people who occupy them. Let them pay a deposit of 10 per cent of the value, and let them have the balance at 4 per cent. interest-There would be something like £4 per quarter to be paid to wipe off the capital sum. I believe there are thousands who would welcome such a scheme. I know that Labour Members will not favour the proposal, because they do not believe in a man owning his own house. [HON. MEMBERS: "Why?"] I have always believed in owning my own house.

This is a scheme by which the Government can relieve themselves of thousands of houses with great advantage. What is going to happen after these houses have been built seven years? Some of them are built of very funny material. I do not believe in anything but the old-fashioned brick when properly bonded. [HON. MEMBERS: "Question!"] I have been in the business since I was a youngster, and I know what a good brick and a brick-built house are. For dryness and everything else, it is an advantage to have a brick house. I do not mean the soft bricks, of which many houses, have been built, but good hard-baked bricks. They will keep out cold and damp. I suggest to the Government that they adopt my scheme. Let the tenants have the money at 4 per cent. If they cannot pay £4 every quarter, let them pay only £8 a year, and the Government will be in pocket. At the end of seven years you will find in the case of many of these houses that the rent paid will not keep them up. [ Laughter. ] I do not mean that they will fall down, but that the rent will not cover the cost of upkeep and necessary repairs.

Lower wages must come, and with that fall there will come lower rents. It is a stitch in time which saves nine, and it will make all the difference if you have in a house a man who is interested in it, because he knows that in about 10 years it will be his own property. Such a man, who loves his own home, and likes to see it nice, will keep it in repair. He cannot be expected to take an interest in another fellows property. That is a solution of the housing problem. In a few years you will get back to economic rents and economic building, and then the country will be able to proceed upon proper lines. All the time you have these subsidies you have this scratching for something which is given for nothing, and it is an immoral practice. Everybody is holding out a hand for something, even the best of us. I appeal to the Labour party to assist the policy of securing that each man shall own his house, and that, I believe, is the ideal at which this country should aim.

I confess I have been amazed at the extraordinary views expressed from the Opposition Benches in regard to the whole housing question. It would appear from the speeches of hon. Members opposite, and even from the speech of the hon. Member for Shore-ditch (Dr. Addison), that they never think of any housing policy apart from this particular emergency scheme, that they actually regard it as the whole1 housing policy of the country, and that they have no idea other than that of sticking to it indefinitely. As the hon. Member for Spen Valley (Mr. Myers) pointed out in his record of the negotiations with the Ministry of Health, it is a temporary scheme. It is to last until 1922, or, in certain circumstances, 1924, and its temporary character is of the essence of the scheme, because in 1927 the houses are to be written down to the economic cost of building at that moment. The present proposal represents the fulfilment of that scheme in so far as it can be fulfilled. It was an emergency scheme, and the point which I desire to press upon the Government is the urgent necessity of another scheme and a permanent scheme for solving the housing problem. That can only be based upon a stoppage of the emergency scheme at a particular definite moment. There is not a housing reformer nor an association of housing reformers which has not expressed an opinion in favour of a stoppage of the temporary scheme and the institution of a permanent scheme. Hon. Members opposite do not represent any housing reformers, even those of their own party. Housing reformers are in favour of a Measure for the solution of the problem, not for two or three years, but for the next generation. That is the problem which lies before the Government, and it is a problem which we are all determined the Government shall tackle in the immediate future.

Several hon. Members have complained of the quality of the houses already erected. I do not agree with that. I think the houses which have been put up under the Government scheme are very much better than the cottages of the old type. I believe that no less than 85 to 90 per cent of the houses that have been built have got three bedrooms, that the streets are better, and that a less number have been put on the acre. Altogether, I think the housing that has been done under the Ministry of Health scheme has been very satisfactory, and I am sorry they have called a halt, for the fringe of the demand has scarcely been touched yet. A lot has been said about the private speculator, but I wonder if any hon. Members noticed the terrible indictment which the Prime Minister made against the private speculator in reading out the figures of how the prices went up month after month, not because the wages had anything at all to do with it, neither was it because the building material was any dearer, but because there was great agitation in this country for more houses and the Government were pressing the local authorities, so these kindly-hearted gentlemen said, "Now is our time," and they put up the prices month after month. The Government have somehow or other found out that 176,000 houses are sufficient. The Minister of Health talked about the subsidy scheme. We opposed that scheme in the beginning, but we have accepted it now, and I want to know whether, supposing there is a genuine case of a man coming forward who wants to build his own house, the Government are prepared, notwithstanding their decision to cry a halt, to assist that man. If there is a crying need in any part of the country for houses to be built, will the Government consent during the two years to more houses being built there, notwithstanding their decision?

I have two or three cases from my own county of Monmouthshire that I would like to bring to the attention of the House, and when I have read them I would like to ask any hon. Member if he will say that the housing shortage has been met in any degree whatsoever. The first is a case of 10 persons living in a small cottage, consisting of one room on the ground floor and two very small bedrooms. No. 1 bedroom is occupied by two adults and one child, and there is a total air space of 420 cubic feet, which would not be sufficient for two persons under the common lodging-house standard; No. 2 bedroom occupied by 7 persons, of whom 3 are males, aged 24, 22, and 18, and the others are females, aged 16, 13, 12, and 7. This room is insufficiently ventilated and has an air space of only 591 cubic feet, which would not be sufficient for two under the common-lodging house standard. Here is another case of a room 5 feet wide, 5 feet 6 inches high, occupied by a mother, a child of 8 years, a daughter 6 years old, another daughter 5 years, a son 2½ years, and a baby was born on the day previous to the inspection. There is another case where they have had permission to build a number of houses, but the promise has been withdrawn by the Minister. It is a house of three rooms occupied by 10 persons; number 1 bedroom 11 feet long, 6 feet high and 12 feet wide, 790 cubic feet of air space, occupied by 8 persons; number 2 bedroom, with 504 cubic feet of air space, occupied by two persons. In neither case is there any through ventilation. The last case I will give is from the same district. This is a case of a two-roomed house with the bedroom divided by a partition, and six persons in the house. In the half of the bedroom, without window or ventilation, the grandfather and two children sleep. These cases show there is need to continue the housing policy. Everybody knew at the beginning that it would be costly, yet we entered upon it. I have an extract here, not from a speech of the Prime Minister, who sometimes says wild things, but from lone by Mr. Walter Long, who is one of the sober-minded Tories of this country. Speaking of the case of the ex-service men, he said the housing policy was necessary, because we could not let them return to bad houses

On a point of Order. Is the hon. Gentleman correct in saying that I voted for £40,000,000 for Mesopotamia?

I said one of them, but the only economy which these people seek to carry out when they come into the House is something which affects the workers or the poor of the country. If it. is a question of arming your Navy or any other such commitments they are in the Lobby with the Government; but if it is a question of health, or education, or trying to turn some poor Civil Service men or women on the streets, it is these people who frighten the Government into what they ought never to do. The Government have not attacked the trusts or the rings which have to do with

practically the whole of the material for housebuilding. How much labour is there in a house? [HON. MEMBERS: "Eighty per cent.!"] The material is 49 per cent. [ Interruption. ] The Government at the close of the War were begged by us to use the factories that they themselves had set up, and the men that were unemployed, instead of paying the unemployment dole, and so produce the material for building houses. They would not do it. That would have interfered with private enterprise! These men might have been used for mass production, and building would have been very much cheaper than it is to-day.

Question put, "That '£15,245,098' stand part of the Resolution."

The House divided: Ayes, 254; Noes, 67.

Division No. 280.]

AYES.

[10.58 p.m.

Adair, Rear-Admiral Thomas B. S.

Clough, Sir Robert

Henry, Denis S. (Londonderry, S.)

Agg-Gardner, Sir James Tynte

Coats, Sir Stuart

Herbert, Dennis (Hertford, Watford)

Amery, Leopold C. M. S.

Cobb, Sir Cyril

Hewart, Rt. Hon. Sir Gordon

Archer-Shee, Lieut.-Colonel Martin

Colfox, Major Wm. Phillips

Hilder, Lieut.-Colonel Frank

Armitage, Robert

Coote, Colin Reith (Isle of Ely)

Hills, Major John Waller

Armstrong, Henry Bruce

Cope, Major William

Hinds, John

Astbury, Lieut.-Com. Frederick W.

Cowan, Sir H. (Aberdeen and Kinc.)

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

Atkey, A. R.

Craik, Rt. Hon. Sir Henry

Hohler, Gerald Fitzroy

Bagley, Captain E. Ashton

Croft, Lieut.-Colonel Henry Page

Hood, Joseph

Baird, Sir John Lawrence

Curzon, Captain Viscount

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

Baldwin, Rt. Hon. Stanley

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

Hopkins, John W. W.

Balfour, George (Hampstead)

Davies, Thomas (Cirencester)

Hopkinson, A. (Lancaster, Mossley)

Banbury, Rt. Hon. Sir Frederick G.

Davies, Sir William H. (Bristol, S.)

Home, Edgar (Surrey, Guildford)

Banner, Sir John S. Harmood.

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

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

Barlow, Sir Montague

Dawes, James Arthur

Houston, Robert Patterson

Barnett, Major Richard W.

Dewhurst, Lieut.-Commander Harry

Hunter, General Sir A. (Lancaster)

Barnston, Major Harry

Doyle, N. Grattan

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

Beauchamp, Sir Edward

Edge, Captain William

Hurst, Lieut.-Colonel Gerald B

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

Edwards, Major J. (Aberavon)

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

Bellairs, Commander Carlyon W.

Edwards, Hugh (Glam., Neath)

Jameson, John Gordon

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

Elliot, Capt. Walter E. (Lanark)

Jodrell, Neville Paul

Benn, Capt. Sir I. H., Bart. (Gr'nw'h)

Erskine, James Malcolm Monteith

Johnson, Sir Stanley

Birchall, Major J. Dearman

Evans, Ernest

Johnstone, Joseph

Bird, Sir A. (Wolverhampton, West)

Falle, Major Sir Bertram Godfray

Jones, J. T. (Carmarthen, Llanelly)

Blades, Sir George Rowland

Fell, Sir Arthur

Kellaway, Rt. Hon. Fredk. George

Borwick, Major G. O.

Fildes, Henry

King, Captain Henry Douglas

Boscawen, Rt. Hon. Sir A. Griffith-

FitzRoy, Captain Hon. Edward A.

Kinloch-Cooke, Sir Clement

Bowyer, Captain G. W. E.

Flannery, Sir James Fortescue

Larmor, Sir Joseph

Boyd-Carpenter, Major A.

Ford, Patrick Johnston

Law, Alfred J. (Rochdale)

Brassey, H. L. C.

Forestier-Walker, L.

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

Breese, Major Charles E.

Forrest, Walter

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

Brittain, Sir Harry

Foxcroft, Captain Charles Talbot

Lister, Sir R. Ashton

Britton, G. B.

Fremantie, Lieut.-Colonel Francis E.

Lloyd, George Butler

Broad, Thomas Tucker

Gee, Captain Robert

Lloyd-Greame, Sir P.

Brown, T. W. (Down, North)

Gibbs, Colonel George Abraham

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

Bruton, Sir James

Gilbert, James Daniel

Lorden, John William

Buckley, Lieut.-Colonel A.

Gilmour, Lieut.-Colonel Sir John

Lort-Williams, J.

Bull, Rt. Hon. Sir William James

Glyn, Major Ralph

Lowe, Sir Francis William

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

Gould, James C.

Lowther, Major C. (Cumberland, N.)

Butcher, Sir John George

Goulding, Rt. Hon. Sir Edward A.

Lowther, Maj.-Gen. Sir C. (Penrith)

Campbell, J. D. G.

Green, Joseph F. (Leicester, W.)

M'Connell, Thomas Edward

Carew, Charles Robert S.

Greenwood, Colonel Sir Hamar

Mackinder, Sir H. J. (Camlachie)

Carr, W. Theodore

Greer, Harry

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

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

Greig, Colonel Sir James William

McMicking, Major Gilbert

Casey, T. W.

Gretton, Colonel John

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

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

Gritten, W. G. Howard

McNeill, Ronald (Kent, Canterbury)

Chadwick. Sir Robert Burton

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

Macpherson, Rt. Hon. James I.

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

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

Macquisten, F. A.

Chamberlain, N. (Birm., Ladywood)

Hamilton, Major C. G. C.

Mallaby-Deeley, Harry

Chilcot, Lieut.-Com. Harry W.

Hannon, Patrick Joseph Henry

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

Churchill, Rt. Hon. Winston S.

Harmsworth, C. B. (Bedford, Luton)

Manville, Edward

Churchman, Sir Arthur

Henderson, Major V. L. (Tradeston)

Marriott, John Arthur Ransome

Clay, Lieut.-Colonel H. H. Spender

Hennessy, Major J. R. G.

Martin, A. E.

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

Rae, H. Norman

Thomson, F. C. (Aberdeen, South)

Mildmay, Colonel Rt. Hon. F. B.

Ramsden, G. T.

Thomson, Sir W. Mitchell- (Maryhill)

Mitchell, Sir William Lane

Randles, Sir John Scurrah

Townley, Maximilian G.

Molson, Major John Elsdale

Rankin, Captain James Stuart

Tryon, Major George Clement

Mond, Rt. Hon. Sir Alfred Moritz

Ratcliffe, Henry Butler

Wallace, J.

Montagu, Rt. Hon. E. S.

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

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

Moore, Major-General Sir Newton J.

Reid, D. D.

Ward, William Dudley (Southampton)

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

Remer, J. R.

Watson, Captain John Bertrand

Moreing, Captain Algernon H.

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

Weston, Colonel John Wakefield

Morrison, Hugh

Roberts, Samuel (Hereford, Hereford)

Wheler, Col. Granville C. H.

Munro, Rt. Hon. Robert

Roberts, Sir S. (Sheffield, Ecclesall)

White, Col. G. D. (Southport)

Murray, C. D. (Edinburgh)

Robinson, Sir T. (Lancs, Stretford)

Whitla, Sir William

Murray, John (Leeds, West)

Roundell, Colonel R. F.

Willey, Lieut.-Colonel F. V.

Murray, William (Dumfries)

Royden, Sir Thomas

Williams, C. (Tavistock)

Nall, Major Joseph

Royds, Lieut.-Colonel Edmund

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

Neal, Arthur

Samuel, A. M. (Surrey, Farnham)

Willoughby, Lieut.-Col. Hon. Claud

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

Sanders, Colonel Sir Robert Arthur

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

Nicholson, Reginald (Doncaster)

Sassoon, Sir Philip Albert Gustave D.

Wilson-Fox, Henry

Norman, Major Rt. Hon. Sir Henry

Scott, A. M. (Glasgow, Bridgeton)

Winterton, Earl

Oman, Sir Charles William C.

Shaw, William T. (Forfar)

Wise, Frederick

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

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

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

Palmer, Brigadier-General G. L.

Smith, Sir Malcolm (Orkney)

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

Parker, James

Sprot, Colonel Sir Alexander

Wood, Sir J. (Stalybridge & Hyde)

Parry, Lieut.-Colonel Thomas Henry

Stanier, Captain Sir Beville

Worsfold, T. Cato

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

Stanley, Major Hon. G. (Preston)

Worthington-Evans, Rt. Hon. Sir L.

Percy, Lord Eustace (Hastings)

Starkey, Captain John Ralph

Yate, Colonel Sir Charles Edward

Perkins, Walter Frank

Steel, Major S. Strang

Yeo, Sir Alfred William

Philipps, Sir Owen C. (Chester, City)

Stephenson, Lieut.-Colonel H. K.

Young, E. H. (Norwich)

Pinkham, Lieut.-Colonel Charles

Stewart, Gershom

Young, Sir Frederick W. (Swindon)

Pollock, Sir Ernest Murray

Sturrock, J. Leng

Pratt, John William

Sueter, Rear-Admiral Murray Fraser

TELLERS FOR THE AYES.—

Preston, W. R.

Sugden, W. H.

Colonel Leslie Wilson and Mr. McCurdy.

Prescott, Major W. H.

Sutherland, Sir William

Purchase, H. G.

NOES.

Acland, Rt. Hon. Francis D.

Green, Albert (Derby)

Myers, Thomas

Addison, Rt. Hon. Dr. Christopher

Grundy, T. W.

Newbould, Alfred Ernest

Barker, G. (Monmouth, Abertillery)

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

O'Grady, James

Barnes, Major H. (Newcastle, E.)

Halls, Walter

Parkinson, John Allen (Wigan)

Bell, James (Lancaster, Ormskirk)

Hancock, John George

Raffan, Peter Wilson

Benn, Captain Wedgwood (Leith)

Hayday, Arthur

Richardson, R. (Houghton-le-Spring)

Bentinck, Lord Henry Cavendish-

Hayward, Evan

Robertson, John

Bowerman, Rt. Hon. Charles W.

Hirst, G. H.

Shaw, Thomas (Preston)

Briant, Frank

Hogge, James Myles

Smith, W. R. (Wellingborough)

Bromfield, William

Holmes, J. Stanley

Swan, J. E.

Brown, James (Ayr and Bute)

Irving, Dan

Thomas, Rt. Hon. James H. (Derby)

Cairns, John

John, William (Rhondda, West)

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

Cape, Thomas

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

White, Charles F. (Derby, Western)

Carter, W. (Nottingham, Mansfield)

Kennedy, Thomas

Williams, Aneurin (Durham, Consett)

Collins, Sir Godfrey (Greenock)

Kenworthy, Lieut.-Commander J. M.

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

Davies, A. (Lancaster, Clitheroe)

Kenyon, Barnet

Wilson, James (Dudley)

Edwards, C. (Monmouth, Bedwellty)

Lawson, John James

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

Edwards, G. (Norfolk, South)

Lunn, William

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

Entwistle, Major C. F.

Maclean, Neil (Glasgow, Govan)

Young, Robert (Lancaster, Newton)

Galbraith, Samuel

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

Gillis, William

MacVeagh, Jeremiah

TELLERS FOR THE NOES.—

Glanville, Harold James

Matthews, David

Mr. G. Thorne and Mr. T. Griffiths.

Graham, D. M. (Lanark, Hamilton)

Morgan, Major D. Watts

Graham, R. (Nelson and Colne)

Murray, Dr. D. (Inverness & Ross)

Resolution agreed to.

Admiralty Pensions [Commutation, Etc.]

Order read for resuming Adjourned Debate on Question [20th July]:

"That this House doth agree with the Committee in the Resolution, 'That it is expedient to make further provision out of moneys provided by Parliament with respect to Admiralty Pensions, and with respect to Pensions, Grants, or Allowances payable under the Injuries in War (Compensation)

Acts, and the Government War Obligations Acts.'"

Question put, and agreed to.

Bill ordered to be brought in upon the said Resolution by Mr. Amery, Mr. Macpherson, Commander Eyres-Monsell, and Mr. Young.

Admiralty Pensions Bill,

"to make further provision with respect to Admiralty Pensions and with respect to Pensions, Grants or allowances payable under the Injuries in War (Compensation) Acts and the Government War Obligations Acts"; presented accordingly and read the First time; to be read a Second time To-morrow, and to be printed [Bill 185].

Kitchen and Refreshment Rooms Committee

Ordered that Mr. Kennedy Jones be discharged from the Committee, and that Mr. Bottomley be added to the Committee.— [ Colonel Gibbs. ]

German Reparation (Recovery) Act

I beg to move,

"That the operation of the German Reparation (Recovery) Act be suspended until the House otherwise determine."

The House will remember that, in the Spring of this year, we passed a somewhat remarkable measure called the, German Reparation (Recovery) Act, which contained a special Section providing that the Act might be made inoperative by a Resolution of this House and the other House, and, as I hope to show, that the Act has been a failure, I therefore put the Motion on the Paper in the form prescribed by the Act. It is exactly the form of Section 6 of the Act. It is necessary to remember, in casting our minds back to the time when we passed this Act, what was the atmosphere of expectancy with regard to the Indemnity from the Germans. There was a coupon, or permit, by virtue of which so many Members sit in this House at present.

May I suggest to my hon. and gallant friend that he himself was very anxious to secure the coupon, in order that he might stand for St. George's-in-the-East?

I do not think that the matter is of any particular interest, but if the hon. Member be interested in the matter, I may say that I represented St. George's-in-the-East for 15 years, I was away at the War for four years, and when I came back I found that the coupon for my seat had been given to a Mr. Cohen. But that is of no importance. It is absolutely immaterial, and out of Order. The coupon which the hon. Gentleman is so anxious to repudiate to-day had five points and one of the points was to make Germany pay. The Prime Minister spoke of sums which encouraged in the mind of the public the expectation that a sum would be secured out of all proportion, as we know, to what can be secured. The Chancellor of the Exchequer disagrees. Has he ever read the speech which was made by the Prime Minister on the subject at Bristol on the 12th December, 1918?

I will give a perfectly fair summary, and, if challenged, I will read the extract, but I am anxious to save the time of the House. The Prime Minister said the War had cost us; £8,000,000,000. Was it fair, he said, that the people who lost the War should pay less than £6,000,000,000 when it cost us £8,000,000,000? Was it fair, he said, that the people who lost the War should pay less than the people who won the War? If that meant anything at all, it meant that at least we should recover £8,000,000,000 as our share. But he went further—I will hand the Chancellor of the Exchequer the quotation from the "Daily Telegraph."

This Motion does not raise the general question of reparation from Germany. The only thing that makes the Motion in order after eleven o'clock is that it is in pursuance of a Statute, and therefore we must confine ourselves solely to the question of that particular Statute, and whether or not ground is shown for its suspension. I do not think the Motion can be admitted on any other ground.

I hope to show that the Bill was put forward as a proper fiscal instrument for recovering the whole of our share of the German indemnity— [HON. MEMBERS: "No!"]—and perhaps you will permit me to give quotations from what was said by the then Chancellor of the Exchequer and by the Lord Chancellor in another place.

Yes, Sir. I will give quotations later on, and I think you will find that the remarks I have made are in order. It was also mentioned in that speech that the total cost was £24,000,000,000, and it was stated that that figure had been submitted to experts, who thought that Germany could not be made to pay that sum. The right hon. Gentleman said that he did not wish to mislead the public, but was bound to tell them that others who had examined Germany's capacity to pay found that she was better able to pay than most people thought, and there is not the least doubt that the people who voted for candidates with that programme did so in the belief that that enormous sum towards the cost of the War would in fact be recovered by this or some similar instrument to be devised by the Government.

Anyone who was not prepared to subscribe to such—[ Interruption ]. In pursuance of this plan the Government came down to the House of Commons to ask us to pass this German Reparation (Recovery) Bill, and it was passed under conditions with which, unfortunately, in this House we are all too familiar. It was passed under what I may call the "hush-and-rush" rule. Anyone who criticised it did so under the fear that they might be represented in the country as unpatriotic, and it was pushed through at such a speed because we were told that it was a measure of such immediate urgency that we were simply robbing the taxpayer of the money to which he was entitled if we put any obstacle in the way of its passage through the House. Accordingly the Bill was passed, and the House was very nearly—not quite—unanimous in its passage. But my experience of the House— [HON. MEMBERS: " Divide! "]— and I have been here about as many years as the hon. Gentleman who cries " Divide "has been months—my experience of the House has taught me that when this House is unanimous, it is nearly always wrong. That is an observation which has a great deal of truth in it, and I hope to show that in this case it is more than justified. What was the plea on which the Government recommended the Bill to the House? They said, " We are going to get all the Allies to co-operate in inflicting this heavy sanction upon our late enemies," and we then began to ask which of the Allies were going to cooperate; and day by day, by the somewhat laborious process of putting questions to the Government, and extracting little by little what information we could, we found that there was a formidable array of Allies on our side in inflicting this sanction upon the German Government. France, Belgium, Italy, and Japan were to join in, and not only they, but Roumania, Serbia, Greece, Portugal, and, as the Government proudly announced, Liberia, were united in insisting that this should be done. The Prime Minister pictured how the industries of Germany would be crippled by a process of this kind. Of course one cannot expect him to be present to-night. He has many duties to perform. But he has appointed a deputy absentee, the Leader of the House, who himself spoke and pressed this measure upon the attention of the House.

Some of us did not oppose the Third Reading because it seemed to us that a sanction of this kind, though applied in the way described and promised by the Government, was in itself likely to be an effective economic weapon. As a matter of fact, in the Covenant of the League of Nations such a weapon is contemplated as an appropriate weapon to apply to anyone who commits an international misdemeanour. If the promises made by the Government had turned out to be true there would have been something to be said for the application of such a weapon, but some of us suggested that there were great difficulties in applying this remedy. We said an Act of this kind was likely to be evaded. We said "You will find considerable difficulty in determining where the goods come from. You will not be able to tell whether they come from Germany or whether in fact they come from Holland, Denmark or Sweden or any other country to which they are sent for the purpose of evading this Act." We further said that if you impose a levy of this kind upon German goods you may find that you are simply fostering in competing countries such as Holland, Switzerland and Denmark a middleman and an entrepot trade generally to the detriment of trade in this country and we further said that when the tax was inflicted it would be found that a great part of the so-called German indemnity was in fact being paid by the traders of this country. But the Prime Minister would have none of that. He regarded this as an instrument which, when it settled down in working order, would supply us with the share we were entitled to of the whole indemnity payable by Germany. He said:

I hope hon. Members will be patient. We shall get on more quickly if they are.

This is an important subject, and I can assure hon. Members that I shall not detain them any longer than is necessary to make my argument. We find from six months' experience that this Bill is not operating as a sanction, and that the allies whose assistance was promised by the Under-Secretary of State for Foreign Affairs are not operating. I believe I am right in saying that we are the only country actually collecting a duty of this kind. If that is so, what becomes of the plea that by pressure from all the Allies we were going to reduce Germany to compliance with our terms? Take the time between the passing of the Act and the time when the terms were accepted, that is, between the 15th March, or thereabouts, and the 12th May. In that period this wonderful Act, which was going to produce all the sums which I shall name in quotations from speeches, has produced £9,000! German trade nourished, was never more nourishing, and never more dangerous. Then we come to the 12th May, or thereabouts, when the Germans accepted our terms and agreed to that somewhat remarkable indemnity proposal that for every £26 which they gave to the Allies they undertook to dump £74 worth of cheap goods upon our customers in neutral markets. If it was a sanction, and that was the only ground on which the Bill was ever justified, the time for the sanction is over-and to the extent that it was effective in securing the acceptance of the terms its work is done. The influence of this Bill has been negligible, and the time we spent on its passage was wasted. Let us examine its effect upon the trade of this ,country. We said that British traders would be called upon to pay the indemnity; upon that point the Leader of the House, whose continued absence we all deplore, said:

"The hon. and gallant Member "—

meaning myself—

"believes that instead of imposing a sanction upon Germany we are imposing a tax on the British trader."

Anyone who has any experience of the working of the Act knows that the fear has been in many cases completely justified. The first experience of the British trader was that when he received £100 worth of goods from Germany he was faced with a demand for £100 tax. Therefore, prior to the time when the German Government effectively implemented its promise, for every £100 worth of goods which came from Germany the British trader was taxed to the full value of the goods. We do not know the destination of the money collected under this Act, except that it was to go into some pool in which the Allies were to participate. At any rate, the British trader got nothing, but he suffered. Even to-day when the tax has been reduced from what was called 50 per cent., but what was in fact 100 per cent., to 26 per cent., we have this remarkable phenomenon that every £100 worth of goods that Comes from Germany to this country is valued for the purpose of duty at £135 2s. 8d. How that calculation is arrived at I have never been able to understand. [ Laughter. ] It is a matter of jesting to some hon. Members of this House, but it is not a matter of jesting to men who are trying to make a living by importing these goods. I am glad to see the Financial Secretary to the Treasury present. He was not very friendly to the Bill when it was passed. We asked repeatedly what is the cost of collecting this payment.

It is not usual on a Motion of this kind to review the whole situation which existed and the speeches which were made when the Bill was passed. The question is whether, in pursuance of a Clause that was put into the Act, the circumstances at this moment justify the House in passing a Resolution to suspend the operation of the Act.

May I respectfully submit that the argument which my hon. and gallant Friend was addressing to the House, namely, as to the cost of the operation of the Act, as compared with the receipts under it, is an argument which bears directly upon the point whether this Act should be suspended or continued.

I am bound to have strict regard to precedent in this matter. As I said earlier, it was a very' doubtful point whether this Motion came under our general practice as to Acts of Parliament. I gave the hon. and gallant Gentleman the benefit of the doubt, and allowed the Motion to go on; but I am clear in my own mind that when these Motions are debated, the debate must be of a strictly limited character as to whether or not we should suspend the operation of an Act. If I allowed quotations from speeches delivered when the Bill was before the House, they would be quite beside the point.

In deference to your ruling, I shall say no more about the cost of operating the Act, though it appeared to me to be a germane point. As I understand, you yourself allowed it to be a germane point in considering whether or not it would be wise for this House to suspend the operation. But I pass now to the inconvenience caused to traders by the continuance in operation of this Act. I have had many letters from importers. I had one from an association of hardware importers about a, week ago which described how they had to send their agents for three days to stand in a long row and try to clear the goods which they had imported from Germany, and how these gentlemen when they went to the Customs were told that their cheques could not be accepted and they must go back and find the cash, and they doubt the wisdom of sending a man to the shed to stand in a crowd for three days, with the necessary cash to pay for the goods, waiting for the attention of the officials, with the charges for warehousing, etc., mounting up. Moreover, so long as this Act continues in operation certain German products are un-importable to this country. The right hon. Baronet the Member for the Scottish Universities (Sir H. Craik) will agree with me that it is almost impossible to-day, owing to this Act, to import German scientific books. There was a protest only two days ago from the Vice-Chancellors of the Universities of Liverpool, Sheffield, and Manchester—

On a point of Order. Is it not the case that if this Resolution were negatived to-night, it would not be possible to raise it again this Session? If that be the case, is it possible within one Session, the same Session as that in which Parliament has passed an Act, to move a Resolution which would have the effect of setting aside Parliament's decision? If you rule in my favour upon the first point, I hold that, if the Resolution were negatived, it could not be raised again this Session, does not that carry us further, and show that this Act having been passed this Session, it is premature for Parliament this Session to pass a rescinding decision.

I think that Section. (6) of the Act makes provision for a Motion of this kind, and certainly contemplates the possibility of it being moved in the Session in which the Act was passed. With regard to the other point, I do not think we could have repeated Motions of this kind.

German scientific books are not obtainable in this country to-day, owing to the operation of the Act. That is a statement coming from Liverpool, Sheffield, Manchester, Newcastle and Birmingham Universities. On the question of evasion I will not touch, except to say that the very thing we suggested has been admitted by the Customs authorities, and that now the Act is applicable not to all German goods but only to German goods which happen to be imported directly from German ports. So that, in fact, what happens is that the German goods are sent to Antwerp, a Belgian invoice form is secured, and they come into this country as before without any levy being made upon them. The Chancellor of the Exchequer knows that some of the biggest Chambers of Commerce, notably Manchester, are complaining bitterly that the entrepot trade of this country has been killed and driven abroad owing to the operation of this Act. Let me remind the House of the amount of money that we were promised from this Act. In many of his speeches the Prime Minister said that if we delayed the passing of the Act we were depriving the taxpayer week by week of hundreds of thousands of pounds. The Leader of the House said:

"I think it is certain that we could collect within the Empire in any one year the full total of the reparation due to the Empire."

The Lord Chancellor really let himself go, and said he estimated that it was possible to collect £100,000,000 a year under the Act. Those were the promises on which the Act was passed—a harassing, futile, tiresome and anxious Act from the point of view of the traders of this country. [HON. MEMBERS: "To the German traders."] No, to the British traders. £100,000 a week, say6 the Prime Minister! The whole indemnity due to us, says the Leader of the House! £100,000,000 a year, says the Lord Chancellor! Up to May 15th £9,000, up to June 15th £30,000, up to the beginning of July £48,000, and to date £198,000. That is the amount collected in six months towards the £100,000,000 a year which was promised us by the keeper of the King's conscience. This Motion is put down in the interest of the trade of this country. It is a Motion which, I venture to think, will have the support of all the Chambers of Commerce in this country. [HON. MEMBERS: " No, no! "] It is a Motion for suspension of an Act which has been a failure and which should come to an end at the earliest possible moment.

I beg to second the Motion.

I shall endeavour not to repeat the arguments advanced by my hon. and gallant Friend (Captain Benn) in support of the Motion, but I shall deal with the last point to which exception was taken by hon. Members, namely, that the repeal of this Act would be in the interest of the traders of this country. This Act creates artificial conditions. Behind the Act there is the threat of armed occupation of German territory. This threat is in the minds of the German people to-day, and I shall endeavour to show that it is depressing the industrial position in Europe generally, and in this country. Labour and Capital have been fighting each other during the last few-months, and this country is apt to lose sight of the fundamental conditions which exist to-day on the Continent. This threat places in the hands of the reactionaries in Germany a powerful weapon to depress industrial conditions, and make the workers of Germany work longer hours and at smaller wages than they would otherwise be willing to do. Sixty millions of people are being forced by artificial conditions to accept reduced wages. I suggest that, instead of having a policy which depresses industrial conditions in Germany, the Government should encourage the German people not to work for such long hours and at such low wages as obtain at present. That is having the effect of depressing industrial conditions here. The result is that German competition is affecting British prices in every neutral market in the world. Our traders are forced to compete with the artificial conditions which the policy of the Government is bringing about. Let me endeavour with a few figures to justify that statement. The international value of the mark—that is, its exchange value in the markets of the world—is one penny. Taking the value of the mark as a penny, what are the wages being paid to-day in Germany?

This is altogether wide of the question. This Motion can only be made in pursuance of the Act. Therefore, it naturally follows that the argument to be addressed to the acceptance of a Motion of this kind is that the Act has achieved its purpose, or that it is no longer necessary.

I wanted to say that it is to the interests of Great Britain that this Act should be repealed in the present Session. I think this Act was conceived in the wrong spirit". It is not—

The hon. Member is not in Order. I shall have to withdraw the Motion from the House altogether. I have already given four warnings.

The Act which is called in question is one which originally enacted that a levy amounting to 50 per cent. might be put upon German goods imported into this country. The idea that was sought to be enforced by that Act was that in so far as Germany was bound to pay reparation to this country for the results of the War, means should be put in the hands of the British Government of collecting that part of the debt that was due by Germany to Britain. It was never intended, as has been suggested, that by this means should be collected all the reparations.

No, he did not. Nobody ever suggested that this was the only means by which it could be achieved. It would be perfectly futile; this was only one of the engines which was to be used, and, in fact, the Act is a complete success, because within a very short period of time since its passage into law, the Germans came forward themselves and agreed to pay 26 per cent. of the value of the whole of their exports to the Allies in respect of reparation, and recognising the value of this Act, they further agreed that in so far as goods were exported to one of the Allied countries which was putting in force such a levy as the present, the 26 per cent. would be collected after that fashion. There has been no dissonance among the Allies on this question. Some have collected it in one way and others in another way. What has been the success of this Act? My hon. and gallant Friend opposite (Captain Benn) has referred to the particular figures of a few months, but the House must recollect that we have been passing through a very extraordinary period during the past few months. The levy was a new one. Trade at the time was in itself depressed, but, added to that depression, we had the coal stoppage, which entirely stopped the ordinary flow of goods from one country to another. Our exports were enormously decreased, and our imports also, not from Germany alone, but from every country in the world, and we have only to look at the figures to see how the trade has been growing since the coal stoppage stopped. In April we collected £5,700, in May £22,000, in June £69,500, and in the first three weeks of July, £114,000. That is to say, during the last three weeks we have collected far more than we collected previously in three months, although in the first part of that three months the levy was 50 per cent. instead of 26 per cent. I think that is of the best possible augury, but I am very glad to be able to see the British Treasury really collecting sums of money by this means which it is quite possible you might have contemplated you could not possibly get from Germany without this engine of collection at all. That is the first point.

Upon the second point—as to the inimical effect upon trade—no doubt whenever you put on a new thing you will have a certain impediment in trade for the moment. You will find a large number of importers will say that this is a restriction. But they become accustomed to these things and they gradually find out how to work them; that is what we have experienced in connection with this levy. Originally there was a payment for the particular amount of the levy at the port in all cases, but the Customs Authorities have got rid of that difficulty and every person is entitled to get his goods on giving the Government a bond. [HON. MEMBERS: " No!"] That is so. The fact is that under the present administration any person who claims-exemption is entitled to take away his goods on giving a bond that he will pay the levy if necessary. We have at the Customs investigated 16,000 various contracts. That was due to the concession given to the trader. We provided under the Act that any person who had made a contract before 8th March should be entitled up to 15th April to get goods imported without the burden of the levy being put upon them. And we extended that so that any person who had paid 20 per cent. of the goods before the date specified should be able to get goods imported free until 15th June. But 15th June is past, and the whole administration is proceeding smoothly, and without difficulty or trouble. It is a remarkable achievement in four months.

My hon. and gallant Friend said—using the usual argument—that anything of this kind results in additional payment by the importer. What has happened is that which we said would happen. The German Government is paying to the German exporter that which is paid on this side. How then can it be said that there is any inducement for the German exporter to charge more than otherwise when he is recompensed by his own Government? Everything which was predicted in regard to this Act has happened. When we have got to the end of the financial year it will be time enough to make complaint about what has been collected.

I voted against this Act on the Third Reading, and immediately went to meetings in my constituency and told my supporters what I had done. These very large meetings supported the line I had taken. I venture to say, from my conversations with business people in various parts of the country, that they, in the light of the working of this Act, agree with the line which was taken by those who voted against this Act on its Third Reading. I think the House will admit that it dealt with this matter in the spirit that it was a Bill which was a regrettable necessity. Business men in this House were not very sure of their ground, and were very chary of where we were going. I am not a business man in the narrow sense of the term. From hard logic and hard experience my judgment refused to accept this Act as a business-like proposition. The Prime Minister himself, I remember, said that we were going to get £20,000,000 a year as the result of the working of the Act.

On a point of Order. Are these arguments on the general principles of the Bill relevant to the matter now before us?

One is surely allowed a sentence or two to introduce a speech. And I would say to the Front Bench that, though this may be a laughing matter to right hon. Gentlemen, it is not a laughing matter to the people of this country. [ Interruption. ]

I am voicing the opinion of the mass of the workers of the country. [HON. MEMBERS: "No!"] Those hostile interruptions do not matter very much to me. I can wait till I get order. These matters are of vital importance to the masses of the people, and we who represent the workers have a right to say so. The Labour party have the great mass of the people behind them.

I would remind the hon. Gentleman that this is not a Second Reading, and that he should keep his remarks to the point before the House.

When I was interrupted, Mr. Speaker, I was proceeding to address myself to the point. We will not get £20,000,000 a year.

I was going to say exactly why I think not. I should also like to quote the opinion of people who lived long before our time. [ Laughter. ] It may be all very humorous to right hon. Gentlemen on the Front Bench; it is not humorous to the thousands of men walking about the streets at the present time unemployed. The Prime Minister said that this would bring in £20,000,000 a year—

Hon. Gentlemen on the opposite benches need not think that they can upset me by their observations. I am too old at the game to be upset. It has been said that the German Reparation (Recovery) Act has brought in over £100,000.

I said that it brought in £114,000 in the first three weeks of July alone.

12 M.

The Prime Minister calculated that the amount would be £1,500,000 a month. With reference to the practical working of this Act, no one can say that it has been a business proposition, and the longer we go on with it the more we shall find ourselves going into the industrial and commercial slough of despond, and the more the masses will find that they are losing employment because of the conditions under which they are working. The organised workers say that by setting up a barrier between Germany and the Central Powers you are bringing unemployment on the people of this country. That seems to be a proposition which the Prime Minister has accepted because, in the speech to which I have referred he said that it was desirable in the interests of the people of this country and of business, industry, and commerce that we should have a free flow of trade between this country and Germany and the Central Powers. It seems to me that because you have not got that free flow the people are losing their employment. The Chancellor of the Exchequer said that we had not had a chance of working the Act successfully because of the disturbance to the trade of this country through the coal stoppage, but the indirect result of the working of this Act is that masses of workers have been laid idle, and as a result you have the great industrial crisis through which we have just passed.

That is a matter of opinion, but there is no difference of opinion upon it among the great mass of the workers of the country. I would suggest to the business men of this House that they cannot assert that this Act has been a success, and they cannot say, in the light of the meagre results, that it has about anything like the desires of the Prime Minister. After all, this Act was placed on the Statute Book to save the faces of right hon. Gentlemen opposite. I was present when the Prime Minister went to Newcastle to make his famous speech—

I must remind the hon. Member that this is not the Second Reading stage of this Act.

If the Government and the House, in the light of the experience of the working of this Act, do not agree

to its suspension, one can only conclude that they want to continue the great game of make-believe. The Prime Minister told us that we were going to search the Germans' pockets. I am not one of those who think that we have no right to insist on the Germans making good the physical and moral damage they have done, but it is very difficult to translate the moral injury they have done into financial terms, and that is what the Government have tried to do. I remember the Prime Minister's visit to Newcastle, because I was in the same train. The only difference was that he travelled first-class and I travelled third-class, and I had to travel in the corridor with my head resting on a soldier's kit-bag. I went into that election fight, and I refused to accept the spirit in which the Prime Minister dealt with that matter, and this Act is the direct result of the spirit that was created in the country. I trust that this House, and particularly the business element in it, will reconsider the whole position, and I hope the Government will agree to suspend the working of this Act, and I am certain that if the House does not do this the business people and the working classes of this country, at the first opportunity, will register their opinion in no questionable way.

rose in his place, and claimed to move, "That the Question be now put."

Question put, "That the Question be now put."

The House divided: Ayes, 147; Noes, 23.

Division No. 281.]

AYES.

[12.7 a.m.

Adair, Rear-Admiral Thomas B. S.

Buckley, Lieut.-Colonel A.

Forestier-Walker, L.

Agg-Gardner, Sir James Tynte

Carr, W. Theodore

Forrest, Walter

Amery, Leopold C. M. S.

Casey, T. W.

Foxcroft, Captain Charles Talbot

Archer-Shee, Lieut.-Colonel Martin

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

Fremantle, Lieut.-Colonel Francis E.

Armitage, Robert

Chilcot, Lieut. Com. Harry W.

Ganzoni, Sir John

Armstrong, Henry Bruce

Churchill, Rt. Hon. Winston S.

Gee, Captain Robert

Astbury, Lieut.-Com. Frederick W.

Churchman, Sir Arthur

Gibbs, Colonel George Abraham

Baird, Sir John Lawrence

Coats, Sir Stuart

Gilbert, James Daniel

Baldwin, Rt. Hon. Stanley

Cobb, Sir Cyril

Gilmour, Lieut.-Colonel Sir John

Balfour, George (Hampstead)

Colfox, Major Wm, Phillips

Glyn, Major Ralph

Barker, Major Robert H.

Cope, Major William

Gould, James C.

Barlow, Sir Montague

Cowan, D. M. (Scottish Universities)

Gretton, Colonel John

Barnett, Major Richard W.

Craik, Rt. Hon. Sir Henry

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

Barnston, Major Harry

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

Hamilton, Major C. G. C.

Barrie, Charles Coupar (Banff)

Davies, Thomas (Cirencester)

Hannon, Patrick Joseph Henry

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

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

Harmsworth, C. B. (Bedford, Luton)

Bellairs, Commander Carlyon W.

Dewhurst, Lieut.-Commander Harry

Hilder, Lieut.-Colonel Frank

Bird, Sir A. (Wolverhampton, West)

Edge, Captain William

Hinds, John

Borwick, Major G. O.

Edwards, Major J. (Aberavon)

Hood, Joseph

Bowyer, Captain G. W. E.

Evans, Ernest

Hopkins, John W. W.

Boyd-Carpenter, Major A.

Falle, Major Sir Bertram Godfray

Horne, Edgar (Surrey, Gulidford)

Breese, Major Charles E.

Fildes, Henry

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

Brown, T. W. (Down, North)

FitzRoy, Captain Hon. Edward A.

Hunter, General Sir A. (Lancaster)

Bruton, Sir James

Ford, Patrick Johnston

Jameson, John Gordon

Johnson, Sir Stanley

Nicholson, Reginald (Doncaster)

Smith, Sir Malcolm (Orkney)

Jones, J. T. (Carmarthen, Llanelly)

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

Stanley, Major Hon. G. (Preston)

Kellaway, Rt. Hon. Fredk. George

Norman, Major Rt. Hon. Sir Henry

Starkey, Captain John Ralph

King, Captain Henry Douglas

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

Steel, Major S. Strang

Larmor, Sir Joseph

Parker, James

Stephenson, Lieut.-Colonel H. K.

Law, Alfred J. (Rochdale)

Parry, Lieut.-Colonel Thomas Henry

Sturrock, J. Leng

Lloyd-Greame, Sir P.

Percy, Lord Eustace (Hastings)

Sugden, W. H.

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

Perkins, Walter Frank

Sutherland, Sir William

Lorden, John William

Pollock, Sir Ernest Murray

Thomson, F. C. (Aberdeen, South)

Lort-Williams, J.

Pratt, John William

Thomson, Sir W. Mitchell- (Maryhill)

M'Connell, Thomas Edward

Preston, W. R.

Townley, Maximilian G

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

Purchase, H. G.

Wallace, J.

McNeill, Ronald (Kent, Canterbury)

Rankin, Captain James Stuart

Ward, William Dudley (Southampton)

Macquisten, F. A.

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

Wheler, Col. Granville C. H.

Matthews, David

Roberts, Samuel (Hereford, Hereford)

White, Col. G. D. (Southport)

Montagu, Rt. Hon. E. S.

Robinson, S. (Brecon and Radnor)

Williams, C. (Tavistock)

Moore, Major-General Sir Newton J.

Robinson, Sir T. (Lancs, Stratford)

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

Morden, Col. W. Grant

Roundell, Colonel R. F.

Wilson-Fox, Henry

Moreing, Captain Algernon H.

Royden, Sir Thomas

Wise, Frederick

Morrison, Hugh

Royds, Lieut.-Colonel Edmund

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

Murray, C. D. (Edinburgh)

Samuel, A. M. (Surrey, Farnham)

Worthington-Evans, Rt. Hon. Sir L.

Murray, John (Leeds, West)

Sanders, Colonel Sir Robert Arthur

Young, E. H. (Norwich)

Murray, William (Dumfries)

Sassoon, Sir Philip Albert Gustave D.

Young, Sir Frederick W. (Swindon)

Nall, Major Joseph

Shaw, William T (Forfar)

Neal, Arthur

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

TELLERS FOR THE AYES.—

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

Smith, Sir Allan M. (Croydon, South)

Colonel Leslie Wilson and Mr. McCurdy.

NOES.

Acland, Rt. Hon. Francis D.

Glanville, Harold James

Newbould, Alfred Ernest

Barnes, Major H. (Newcastle, E.)

Graham, D. M. (Lanark, Hamilton)

O'Grady, James

Benn, Captain Wedgwood (Leith)

Griffiths, T. (Monmouth, Pontypool)

Smith, W. R. (Wellingborough)

Cape, Thomas

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

Williams, Aneurin (Durham, Consett)

Carter, W. (Nottingham, Mansfield)

Kenworthy, Lieut.-Commander J. M.

Wilson, James (Dudley)

Collins, Sir Godfrey (Greenock)

Kiley, James Daniel

Davies, A. (Lancaster, Clitheroe)

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

TELLERS FOR THE NOES.—

Edwards, C. (Monmouth, Bedwellty)

MacVeagh, Jeremiah

Colonel Penry Williams and Mr. Lawson.

Entwistle, Major C. F.

Morgan, Major D. Watts

Question put accordingly,

"That the operation of the German Reparation (Recovery) Act be suspended until the House otherwise determine."

The House divided: Ayes, 23; Noes, 146.

Division No. 282.]

AYES.

[12.15 a.m.

Acland, Rt. Hon. Francis D.

Glanville, Harold James

Newbould, Alfred Ernest

Barnes, Major H. (Newcastle, E.)

Graham, D. M. (Lanark, Hamilton)

O'Grady, James

Benn, Captain Wedgwood (Leith)

Griffiths, T. (Monmouth, Pontypool)

Smith, W. R. (Wellingborough)

Cape, Thomas

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

Williams, Aneurin (Durham, Consett)

Carter, W. (Nottingham, Mansfield)

Kenworthy, Lieut.-Commander J. M.

Wilson, James (Dudley)

Collins, Sir Godfrey (Greenock)

Kiley, James Daniel

Davies, A. (Lancaster, Clitheroe)

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

TELLERS FOR THE AYES.—

Edwards, C. (Monmouth, Bedwellty)

MacVeagh, Jeremiah

Mr. Lawson and Colonel Penry Williams.

Entwistle, Major C. F.

Morgan, Major D. Watts

NOES.

Adair, Rear-Admiral Thomas B. S.

Buckley, Lieut.-Colonel A.

Forestier-Walker, L.

Agg-Gardner, Sir James Tynte

Carr, W. Theodore

Forrest, Walter

Amery, Leopold C. M. S.

Casey, T. W.

Foxcroft, Captain Charles Talbot

Archer-Shee, Lieut.-Colonel Martin

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

Fremantle, Lieut.-Colonel Francis E.

Armitage, Robert

Chilcot, Lieut.-Com. Harry W.

Ganzoni, Sir John

Armstrong, Henry Bruce

Churchill, Rt. Hon. Winston S.

Gee, Captain Robert

Astbury, Lieut.-Com. Frederick W.

Churchman, Sir Arthur

Gibbs, Colonel George Abraham

Baird, Sir John Lawrence

Coats, Sir Stuart

Gilbert, James Daniel

Baldwin, Rt. Hon. Stanley

Cobb, Sir Cyril

Gilmour, Lieut.-Colonel Sir John

Balfour, George (Hampstead)

Colfox, Major Wm. Phillips

Glyn, Major Ralph

Barker, Major Robert H.

Cope, Major William

Gould, James C.

Barlow, Sir Montague

Cowan, D. M. (Scottish Universities)

Gretton, Colonel John

Barnett, Major Richard W.

Craik, Rt. Hon. Sir Henry

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

Barnston, Major Harry

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

Hamilton, Major C. G. C.

Barrie, Charles Coupar (Banff)

Davies, Thomas (Cirencester)

Hannon, Patrick Joseph Henry

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

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

Harmsworth, C. B. (Bedford, Luton)

Bellairs, Commander Carlyon W.

Dewhurst, Lieut.-Commander Harry

Hilder, Lieut.-Colonel Frank

Bird, Sir A. (Wolverhampton, West)

Edge, Captain William

Hinds, John

Borwick, Major G. O.

Edwards, Major J. (Aberavon)

Hood, Joseph

Bowyer, Captain G. W. E.

Evans, Ernest

Hopkins, John W. W.

Boyd-Carpenter, Major A.

Falle, Major Sir Bertram Godfray

Home, Edgar (Surrey, Guildford)

Breese, Major Charles E.

Fildes, Henry

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

Brown, T. W. (Down, North)

FitzRoy, Captain Hon. Edward A.

Hunter, General Sir A. (Lancaster)

Bruton, Sir James

Ford, Patrick Johnston

Jameson, John Gordon

Johnson, Sir Stanley

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

Stanley, Major Hon. G. (Preston)

Jones, J. T. (Carmarthen, Llanelly)

Nicholson, Reginald (Doncaster)

Starkey, Captain John Ralph

Kellaway, Rt. Hon. Fredk. George

Norman, Major Rt. Hon. Sir Henry

Steel, Major S. Strang

King, Captain Henry Douglas

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

Stephenson, Lieut.-Colonel H. K.

Larmor, Sir Joseph

Parker, James

Sturrock, J. Leng

Law, Alfred J. (Rochdale)

Parry, Lieut.-Colonel Thomas Henry

Sugden, W. H.

Lloyd-Greame, Sir P.

Percy, Lord Eustace (Hastings)

Sutherland, Sir William

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

Perkins, Walter Frank

Terrell, Captain R. (Oxford, Henley)

Lorden, John William

Pollock, Sir Ernest Murray

Thomson, F. C. (Aberdeen, South)

Lort-Williams, J.

Preston, W. R.

Thomson, Sir W. Mitchell- (Maryhill)

M'Connell, Thomas Edward

Purchase, H. G.

Townley, Maximilian G.

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

Rankin, Captain James Stuart

Ward, William Dudley (Southampton)

McNeill, Ronald (Kent, Canterbury)

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

Wheler, Col. Granville C. H.

Macquisten, F. A.

Roberts, Samuel (Hereford, Hereford)

White, Col. G. D. (Southport)

Matthews, David

Robinson, S. (Brecon and Radnor)

Williams, C. (Tavistock)

Montagu, Rt. Hon. E. S.

Robinson, Sir T. (Lanes, Stretford)

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

Moore, Major-General Sir Newton J.

Roundell, Colonel R. F.

Wilson-Fox, Henry

Morden, Col. W. Grant

Royden, Sir Thomas

Wise, Frederick

Moreing, Captain Algernon H.

Royds, Lieut.-Colonel Edmund

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

Morrison, Hugh

Samuel, A. M. (Surrey, Farnham)

Worthington-Evans, Rt. Hon. Sir L.

Murray, C. D. (Edinburgh)

Sanders, Colonel Sir Robert Arthur

Young, E. H. (Norwich)

Murray, John (Leeds, West)

Sassoon, Sir Philip Albert Gustave D.

Young, Sir Frederick W. (Swindon)

Murray, William (Dumfries)

Shaw, William T. (Forfar)

Nall, Major Joseph

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

TELLERS FOR THE NOES.—

Neal, Arthur

Smith, Sir Allan M. (Croydon, South)

Colonel Wilson and Mr. McCurdy.

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

Smith, Sir Malcolm (Orkney)

The remaining Orders were read, and postponed.

It being after half-past Eleven of the Clock upon Thursday evening, Mr.

SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.

Adjourned at Twenty-four Minutes after Twelve o'clock.