House of Commons
Tuesday, August 2, 1921
The House met at a Quarter before Three of the Clock, MR. SPEAKER in the Chair.
Private Business
Private Bill [ 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 Reading thereof, the Standing Orders not previously inquired into, which are applicable thereto, have been complied with, namely:
Rhymney and Aber Valleys Gas and Water Bill [ Lords ].
Bill to be read a Second time.
Wolverton Estate Bill [ Lords ],
Read the Third time, and passed, without Amendment.
De Trafford Estates Bill [ Lords ],
Manchester Corporation (General Powers) Bill [ Lords ],
As amended, considered; to be read the Third time.
South Shields Corporation Bill [ Lords ],
As amended, to be considered upon Friday.
Adamson's Divorce Bill [ Lords ],
Hamilton's Divorce Bill [ Lords ],
Read a Second time, and committed.
Hastings Tramways (Extension) Bill [ Lords ] (by Order),
Read the Third time, and passed, with Amendments.
South Essex Waterworks Bill [ Lords ],
Ordered, That Standing Order 243 be suspended, and that the Bill be now read the Third time.—[ The Chairman of Ways and Means. ]
Bill accordingly read the Third time, and passed, with Amendments.
Ministry of Health Provisional Order (Stoke-on-Trent Extension) Bill,
As amended, considered;
Ordered, That Standing Order 223 be suspended, and that the Bill be now read the Third time.—[ The Chairman of Ways and Means. ]
Bill accordingly read the Third time, and passed.
Ministry of Health Provisional Order (Cardiff Extension) Bill (by Order),
Third Beading deferred till Friday.
Adamson's Divorce Bill [ Lords ] and Hamilton's Divorce Bill [ Lords ],
Ordered, That a Message be sent to the Lords to request that their Lordships will be pleased to communicate to this House copies of the Minutes of Evidence and Proceedings, together with the Documents deposited, in the case of Adamson's Divorce Bill [ Lords ] and Hamilton's Divorce Bill [ Lords ].—[ Mr. Morison ]
Embankment Gardens
I desire to present a petition from the residents and users of Whitehall Court, in their own interest, and on behalf of the public formerly using the public gardens on the Embankment, praying for the removal of the two-storied temporary buildings there.
Envoy to Vatican
I desire to present a petition from the inhabitants of Nottingham, praying for the withdrawal of the Papal envoy.
Oral Answers to Questions
India
Monasite Sand
asked the Secretary of State for India whether any foreign-owned company controls the sale of monasite sand in Travancore State or elsewhere in India?
The answer is in the negative.
Civil Service (Pensions)
asked the Secretary of State for India whether, in view of the fact that the grant of an additional pension of £100 a year to Army officers having held high civil appointments in India is conditional on such officers having held posts carrying a pay of Rs. 3,000 per mensem and that this condition renders many officers, even up to the rank of commissioner, ineligible for the benefits of this concession, he will consider the question of reducing the minimum limit to posts carrying a pay of Rs. 2,500 per mensem?
It was not the intention that this pension should be admissible to officers who have held civil posts of lower rank than that of commissioner. No commissionership of a division now carried less pay than Rs. 3,000 a month.
Could the right hon. Gentleman not think of making it a minimum of less than Rs. 3,000 a month?
I am not prepared to say that without consideration. I will consider it.
Army Officers (Differentiation)
asked the Secretary of State for India whether, when the question of introducing in India the differentiation between single and married officers, which now exists at home, to officers of the British Army serving in India is taken into consideration, the question of applying the same differentiation to British officers of the Indian Army will also be taken into consideration?
Yes, Sir.
Contribution to Royal Navy
asked the Secretary of State for India whether he has had under consideration the importance of the services rendered by the Navy to the defence of India and her trade; whether he can state what is the contribution of India to the Navy Estimates; and what has been the outcome of the deliberations in India and at the Imperial Cabinet in regard to an increase in this contribution?
I am fully aware of the importance of the services rendered by the Navy to India, in common with the rest of the Empire. The direct contribution from Indian revenues to Naval Funds is £100,000 per annum. In the present financial situation in India and in view of the heavy burden which already falls on Indian revenues in respect of defence, I can hold out no hope of an increase to this contribution at present. I am unable to make any statement as to the proceedings of the Imperial Conference.
Have the Board of Admiralty ever pressed for an increase, in view of the great services that the Navy renders to India?
Has anything been done to give effect to Admiral Jellicoe's recommendations contemplating an Indian Navy?
We have received Admiral Jellicoe's recommendations. Perhaps my hon. and gallant Friend will put down another question.
May I press for an answer to my question? Have the Board of Admiralty ever pressed the Secretary of State for India to make a contribution, in view of the great services rendered by the Navy?
The services rendered by the Navy are not only to India, but to the whole Empire. With regard to the question of the hon. and gallant Gentleman as to the Board of Admiralty, I would suggest that question should be put to the First Lord of the Admiralty.
Must not any question of contribution from India to the Imperial Navy wait till India has control of her own finances?
Sukkur Barrage
asked the Under-Secretary of State for India whether, considering the opposition to the Sukkur barrage project of 1920, he will appoint a Committee to examine and report on the scheme before it is proceeded with?
My sanction to this scheme was accorded subject to reconsideration of the financial prospects. These are at present under discussion with the authorities in India. It is not my intention to appoint a further Committee of experts on the technical aspects of the Sukkur barrage scheme. The scheme has been exhaustively examined in India since the Committee of experts reported to my predecessor in 1913, and in its present form meets, I understand, all the objections raised by that Committee against the scheme then before them. I think there is no room for doubt as to the enormous benefits which this scheme would confer on Sind by the great new area which will come under cultivation and the population which it will benefit.
Is not one of the conditions of this scheme that the revenue assessment of the Sind should be increased, or rather doubled, and will not this in itself cause trouble in the Sind?
If the revenue assessment is increased, it is due to the fact that an area, roughly speaking, of about the size of Wales, which is more or less a desert, will be brought under cultivation.
Is not the right hon. Gentleman aware that this area can be brought under cultivation without building the barrage as now proposed?
That is exactly the question upon which the engineering advice at my disposal and the disposal of my predecessor differs.
National Expendituke (Treasury Circular)
asked the Secretary of State for India whether he has been able to comply with the request to the Treasury circular asking for a reduction in the Estimates for the forthcoming year?
asked the Secretary of State for War whether a reply has been sent to the Treasury circular asking for a reduction in the Estimates for the next financial year; and to what extent it has been found possible to promise reduction?
asked the Secretary of State for War whether, following the lines of the recent Treasury Order, he can give any indication as to a contemplated reduction of the staff of his Department during the next 12 months; whether he is able to state roughly the number which it may be possible to dispense with, together with the approximate saving of-cost to the country?
asked the Secretary of State for the Home Department what economies tare contemplated in the Estimates for his Department for 1922–23?
asked the Postmaster-General whether he has been able to comply with the request in the Treasury circular asking for a reduction in the Estimates for the forthcoming year?
asked the Postmaster-General whether, following the lines of the recent Teasury Order, he can give any indication as to a contemplated reduction of the staff of his Department during the next 12 months; and whether he is able to state roughly the number which it may be possible to dispense with, together with the approximate saving of cost to the country?
asked the Minister of Pensions whether he can state approximately the amount of reduction anticipated in the forthcoming year in the Estimates of his Department; and what reply he has sent to the Treasury inquiries on this point?
asked the Minister of Agriculture whether a reply has been sent to the Treasury Circular; and, if so, in what terms?
asked the Minister of Agriculture whether, following the lines of the recent Treasury Order, he can give any indication as to the contemplated reduction of the staff of his Department during the next 12 months; and whether he is able to state roughly the number which it may be possible to dispense with, together with the approximate saving of cost to the country?
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, whether he can state approximately the amount of reduction anticipated in the forthcoming year in the Estimates of his Department; and what reply he has sent to the Treasury's inquiries on this point?
asked the President of the Board of Trade whether a reply has been sent to the Treasury Circular asking for a reduction in the Estimates for the next financial year; and to what extent it has been found possible to promise reductions?
asked the Solicitor-General whether a reply has been sent to the Treasury Circular; and, if so, in what terms?
I would refer to the answer which I gave yesterday to the hon. Member for the Acton Division, in which I stated that the period allowed for replies to the Treasury Circular was until the 31st July; that as replies are received they require to be subjected to very careful examination; and that it is not possible to make any statement as to the economies to be effected until they have been individually and collectively so examined and discussed with the Departments concerned.
On a point of Order. Is it competent for the Secretary to the Treasury to undertake replies from many Departments on a question which concerns the interior economy of those Departments, and with which he must necessarily not be fully acquainted?
It is competent for the Financial Secretary to the Treasury to answer together a series of questions affecting his Department.
On a point of Order. May I, Mr. Speaker, draw your attention to the fact that the questions do not refer to the Treasury, but to internal economies which are desired in the different Departments, and of which, necessarily, the Treasury cannot have full knowledge. May I ask whether the Ministers of the Departments concerned are present to answer any supplementary questions which may arise in connection with the questions?
It is quite customary for questions of this kind to be referred to the Treasury. These questions refer to the Treasury Circular, and it does not seem misplaced that replies should come from the Treasury.
My question is number 30. The Financial Secretary said that these answers to the Treasury Circular had to be in by 31st July. That means, of course, that the Ministers of the Departments have sent the information. Are we not, as Members of this House, entitled to ask from each of the separate Ministers the information which he has sent to the Treasury, and if not, why not?
The Treasury Circular requested answers to be sent to the Treasury.
My point is that we, as Members, cannot get the information from the heads of these Departments as to what are the recommendations they make in regard to economy. Why is it we cannot get that, seeing the answers to the Circular have been sent, and the information must be in the hands of the Minister?
I have already said that replies to the Circular were to be sent to the Treasury, and that therefore it is proper for the Treasury to reply.
Will the hon. Gentleman put himself into communication with the First Commissioner of Works with a view to the removal of these additional buildings from the parks and lakes of London, and thereby secure a reduction of the staff automatically?
I am not sure that arises out of the questions I have just answered. Perhaps the hon. Gentleman will give me notice of it?
Can the hon. Gentleman give an undertaking that before the House adjourns we shall have some information in regard to the replies?
A statement about that has already been made by the Chancellor of the Exchequer; if the hon. Gentleman wants a further statement he should address a specific question to the Chancellor of the Exchequer.
Is it intended to make a statement to the House before we adjourn?
Question 70 asks the right hon. Gentleman what buildings it is proposed to do away with, in order to make economies in the Office of Works. That is the question.
British Army
General Staff
asked the Secretary of State for War how many officers of the General Staff were serving in the United Kingdom, in Europe (exclusive of Gibraltar), and in India, respectively, on 30th June last; and what were the corresponding figures for 1914 at the same date?
With the hon. and gallant Gentleman's permission, I will circulate the figures in the OFFICIAL REPORT.
The following are the figures:
The numbers of general staff officers serving on 30th June, 1921, and 30th June, 1914, in the areas named were as follows:—
War Decorations
asked the Secretary of State for War whether he is aware that, while some men of the l/6th Devons have been awarded the 1914–15 Star, others of the same battalion with identical service have not; and whether he can give the reason for this distinction?
I am not aware of any such cases. If my hon. and gallant Friend will furnish me with full details of the specific cases he has in mind, I will have the matter investigated.
If that information is not in the right hon. Gentleman's possession, I have got letters from the very men alluded to, and, if I supply the information, what steps will he take in this matter?
I have already said that I will have the matter investigated.
asked the Secretary of State for War whether the Earl Cavan's tribunal on hard cases, to which the claim of the Wessex Division to the 1914–15 star was referred, recommended in favour of the claim; and why he did not adopt their recommendation?
The answer to the first part of the question is in the negative; the second point does not therefore arise.
Territorial Army (Staffs)
asked the Secretary of State for War whether the reduction of 21 battalions of the Territorial Army will enable any corresponding economy to be made in brigade and divisional headquarters staffs?
No, Sir; the brigade and divisional headquarters staffs of the Territorial Army were appointed for the organisation of 14 divisions and 42 infantry brigades, and the 21 battalions in question are surplus to this organisation.
Is it not a fact that the staffs are at least as big as before the War, and is it proposed to reduce the fighting strength of the Territorial Army by 20,000, without any corresponding reduction in the staffs?
That is not at all the question put by the hon. and gallant Gentleman. It is totally different, because he asked me with regard to 21 battalions, and that is the question which I have answered.
54th East Anglian Division
asked the Secretary of State for War what is the number and amount of pay and allowances of the permanent staff of the 54th East Anglian Division?
The number of the permanent staff of the 54th (East Anglian) Division on 1st Aqril last was 144, and the cost £58,770 per annum.
Deptford DepôT
asked the Secretary of State for War whether, in view of the many representations that are being frequently made that Deptford meat market should be restored to its pre-War functions, he will consider the advisability of transferring the Government Departments and stores now occupying the market to the unused portions of Woolwich Arsenal, and thus save the country £10,000 per annum now paid as rent for the market?
I regret it is impracticable to adopt my hon. and gallant Friend's suggestion. In view of the functions fulfilled at Deptford by the Supply Reserve Depôt and the Mechanical Transport Stores Depôt, the rent paid is not considered exorbitant, and is probably far less than the cost involved in proceeding with alternative sites if such a transfer could be effected.
Defence Force (Medical Officers)
asked the Secretary of State for War whether he is aware that there were seven medical officers at the Defence Force camp at Blackpole, near Worcester, where there were on an average only 1,541 men during April; that the senior medical officer, finding there was no work for him, obtained indefinite leave on full pay at £2 10s. per diem and returned to his practice at Liverpool; that another medical officer left camp on leave on full pay to continue his studies for higher medical degrees; that other medical officers also left on indefinite leave to resume their civil jobs on full pay; that, in view of the state of the camp on 4th May, which had a strength of 1,541, all ranks, a cadre of 82, all ranks, field ambulance was necessary; and that a few regimental or brigade Royal Army Medical Corps vehicles would have been sufficient to take the cases to the nearest hospital; and will he have this case inquired into?
I have called for an early report on this matter, and will communicate with my hon. and gallant Friend as soon as I am in a position to do so.
Troops, India and Mesopotamia (Pay Arrears)
asked the Financial Secretary to the War Office whether he is aware that men who return from India and Mesopotamia complain that they are kept waiting for arrears of pay, sometimes for long periods and often without work or means, pending the arrival of their papers in this country; and whether he can arrange to expedite the final adjustment of pay and pension and ensure that the men receive something on account while they are waiting for their papers?
Delay has occurred in effecting a final adjustment of the pay accounts of men returning from India and Mesopotamia owing to the difficulty of obtaining last pay certificates from the India authorities. Steps have been, and are being, taken to expedite the receipt of these documents. All payments due for the voyage home or for service in this country are made, and final settlement is effected immediately on the receipt of the necessary information from India. The issue of pension is not affected by the absence of this information.
H.M.S. "Hampshire" (Loss)
asked the Secretary of State for War if he has any official information as to an alleged divulgence by an officer on Lord Kitchener's staff, who went down with the "Hampshire," of secret information respecting the journey of this vessel to Russia; and, if so, if he is prepared to make any statement on the subject?
No, Sir; I have no official information of the character suggested, and the circumstances connected with the loss of the "Hampshire" do not reflect in any way on any member of the late Lord Kitchener's staff.
Is it not a fact that full confidential information has been sent to the right hon. Gentleman's Department by His Majesty's Commission that went to Berlin shortly after the War?
My reply was a carefully prepared answer to the question.
Is it not a fact that the selection of the "Hampshire" was only made at the last minute, and the route was not officially fixed until the forenoon of the date on which she sailed?
I believe that is so.
Tropical Agricultural Colleges
asked the Secretary of State for the Colonies whether, with a view to establishing a chain of tropical agricultural colleges in the tropical Colonies and Dependencies, where there is a great variety of conditions and tropical products, he will suggest to the Governments of Ceylon and West Africa to consider the foundation of colleges in those centres similar to that at present being set up for the West Indies in Trinidad; and whether he will also endeavour to arrange that those colleges shall, like that in Trinidad, be in close association with the large universities in this country, with the object of transference of undergraduates desirous of taking practical courses in tropical agriculture?
I fear that in the present financial condition of the West African Colonies such a proposal would not be practicable. In Ceylon a School of Tropical Agriculture has been in existence since 1916, and it will no doubt be developed in connection with the recently established University College. I shall always be pleased to give such assistance as may be within my power in the direction indicated in the last part of the question, subject to the willingness of the Colonial Government controlling the institution to provide any necessary funds.
Is it not the case that the Government of Ceylon had a project under consideration just before the War; and will the hon. Gentleman say whether that project has been laid aside or is it still under consideration?
I am not sure whether that is so or not. I think it is, but my hon. Friend will recognise that conditions have been appreciably changed by the War.
British North Borneo (Contracted Labourers)
asked the Secretary of State for the Colonies whether he will call for a return showing the number of contracted labourers in the territory of British North Borneo, who, since the Ordinance No. 9 of 1916, have been sentenced to the penalty of whipping?
I will consult the British North Borneo Company on the subject.
When the hon. Gentleman receives the reply will he see that steps are taken to end the cruelties meted out to these labourers?
I cannot accept the suggestion of the hon. Member about the cruelties, but when I get the reply I shall be pleased to place him in possession of the information which I receive.
Palestine (Press Censorship)
asked the Secretary of State for the Colonies whether a censorship of newspapers is still in force in Palestine; if so, why liberty of the Press is not permitted under the British mandate; if he is aware that portions of his own recent speech in this House on the Estimates for the Middle East Department have been censored out of the newspapers in Palestine; what is the reason for this action; and whether the cost of the censorship is borne by the British taxpayer or by the people of Palestine?
The answer to the first part of the question is in the affirmative. Censorship is considered essential in Palestine at the present moment while the country is disturbed with acute political problems; and large numbers of the public are ignorant and in consequence easily swayed by propaganda to resort to action which is detrimental to the public security. I have no information as to the third and fourth parts of the question, and have caused inquiries to be made on the subject. The cost of the censorship forms part of the administrative expenditure of Palestine which is borne by the local taxpayer.
Is it possible for them to censor the speech of a Minister of the present Government if they observe anything dangerous in the speech?
I have already told the hon. and gallant Gentleman that I have no information on the question, and that I am trying to obtain it. I think my right hon. Friend, in the interests of good government and security, might be disposed to acquiesce in a greater measure of compulsory reticence.
Will the hon. Gentleman inform me when he gets the information as to this extraordinary action in censoring Ministers' speeches?
Certainly.
Scotland
Approved Societies (Interest)
asked the Secretary for Scotland what rate of interest is allowed by the Scottish Board of Health to approved societies under the National Health Insurance Acts on moneys belonging to the societies, but retained in the Investment Account of the Board, and what rate is actually earned by the Board of Health on such moneys; and why are approved societies not allowed the market rate of interest which they could obtain from the Government if they were permitted to invest the money themselves?
The rate of interest allowed to approved societies on their credits in the Investment Account with the Scottish Board of Health is fixed by Regulations of the National Health Insurance Joint Committee. The rate was formerly 3¼ per cent., but was raised to 4 per cent., at which it still stands, as from 1st January, 1918. The average rate earned at the present time is approximately 5 per cent, per annum, but it is necessary to apply some part of the interest receipts to a reserve to make good depreciation of securities, especially those representing investments made before the War.
Central Control Board (Liquor Traffic)
asked the Secretary for Scotland during what hours licensed premises in Scotland can be open for the sale of liquor under the Central Control Board (Liquor Traffic) Regulations now in force?
Under the Central Control Board's Orders for scheduled areas in Scotland (which include the greater part of the country) the ordinary week-day hours for the sale of exciseable liquor for consumption on the premises are 12 to 2.30 p.m. and 6 to 9 p.m., and for consumption off the premises 12 to 2.30 p.m. and 6 to 8 p.m. In the West Central, East Central, and Northern areas there is only a single opening period on Saturdays, namely, from 4 to 9 p.m. for sale of liquor for consumption on the premises and from 4 to 8 p.m. for consumption off the premises.
Do these hours apply to all the large towns in Scotland?
Does the hon. Member mean the last hour?
The right hon. Gentleman said that they applied to all the area over which the Liquor Control Board have authority. Does that include all the large towns in Scotland?
Yes.
Government Staffs and Offices
Post Office (Sunday Labour)
asked the Postmaster-General how many postal servants have been dispensed with; and what saving will be effected, and in what respect, by the abolition of postal facilities on Sundays?
No full-time officers have been dispensed with as a result of the abolition of Sunday facilities. The services of a certain number of persons employed on Sundays only have been terminated, but the exact figure is not available. The saving estimated to be effected in a full year is £1,000,000, the greater part of which is due to the cessation of the special pay, over and above normal weekly wages, earned by Post Office staff for their former Sunday attendances.
Can my right hon. Friend say whether it is not a fact that, in his reply to the Financial Secretary to the Treasury, he stated that he was going to effect a saving of £1,000,000?
That announcement was made some months ago.
Are we to understand that there is no new economy?
I hope the hon. Gentleman will not understand that.
What shall I understand?
asked the Postmaster-General whether lads of 18, employed in the General Post Office as junior sorters, are receiving at present a weekly salary which, including bonus, amounts to £3 3s. or more; and whether such a sum is the regular wages for lads of that age in the public services?
I would refer the hon. Member to the reply given to his question on the 19th July.
Is the right hon. Gentleman aware that the salary of £160 per year is precisely double that allowed for an entrance scholarship at an English University?
Will the right hon. Gentleman answer the last part of the question whether that is the regular wage of lads of that age in the public service?
It all depends on the class of work the lad is doing. If a boy is training as a postman or telegraphist his rate differs. These boys are sorters.
Why does the right hon. Gentleman not answer the question instead of referring to another question which it does answer?
I think the hon. Member will find it was covered by my previous answer.
How many sorters of the age referred to are receiving this pay?
It is the basic wage plus cost of living for all sorters of that age.
How many are receiving it?
I have not the exact figure.
Is any reduction going to be made?
Yes, Sir.
Ministry of Agriculture
asked the Minister of Agriculture why the salary of the chief scientific adviser and director-general of the Intelligence Department has been raised from £l,800 last year to £2,200 this year, in addition to bonus?
The increased salary was sanctioned in recognition of the importance and responsibility of the post under present conditions. It has been sanctioned as a salary personal to Sir Daniel Hall, the present distinguished occupant of the post. I may add that no bonus will be payable on the revised salary after the 1st September next.
Has the right hon. Gentleman sent in his report to the Treasury with regard to reductions?
That arises on another question. However, I have sent in a report.
Temporary Clerks
asked the Chancellor of the Exchequer whether temporary clerks who have qualified for permanent appointments in the Civil Service are, without regard to their age, experience and responsibilities, being paid the recognised rates of pay for youths of 18 to 22 years of age; whether he is aware that many of these clerks are men of mature age and are married, with families; and whether, in view of these circumstances, the matter will be reconsidered?
I have been asked to reply. I am unable to add to the answer which I gave on the 21st July to the hon. Member for Harrow (Mr. Mosley).
Public Trustee's Office
asked the Chancellor of the Exchequer whether he is aware that there was a loss of £114,800 last year on the work of the Public Trustee's Office; and what was the reason of this?
The loss is correctly stated and the causes of it are discussed in the Public Trustee's Annual Report recently issued by His Majesty's Stationery Office. It is there pointed out (1) that the loss would have been reduced to about £60,000 had the new Fees Order been in full operation throughout the year, and (2) that the expenditure included a sum for war bonus which will decline with the cost of living.
If these new fees would have caused a loss of £60,000, may it not be necessary to increase the fees, so that the office may be run without loss?
The hon. and learned Member will see from my answer that there has been such an increase.
Military Permit Office
asked the Chancellor of the Exchequer whether the work of the military permit office is essentially the same as that of the passport office and the aliens department of the Home Office, and could be discharged by those departments; and what is the staff of the military permit office and its cost?
I have been asked to reply. The answer to the first part of the question is in the negative, and as regards the latter part, I would refer the hon. and gallant Member to the reply on 28th July last to the hon. Member for Silvertown (Mr. J. Jones).
Post Office
Telegraph Cables (India)
asked the Postmaster-General whether he can give any information as to the progress of the repairs at present being undertaken to the telegraph cables to India; whether these repairs are being pressed forward as expeditiously as circumstances permit; whether messages paying the extra rate of 5s. per word are delivered promptly, whereas cable messages paying ordinary rates are sometimes delayed five or six days; and whether he can use his influence to ensure to the community that undue advantage is not being taken of the present position in order to force-users of the cables to send their messages at express message rates?
The repairs to the Eastern Telegraph Company's cables to India have been completed, and the delay on messages paid at the ordinary rate has been reduced to about 1 day in the outward direction and l½ days in the homeward direction. I am assured that all telegrams are dealt with by the company with the utmost despatch, and there is no ground for the suggestion that the delay is artificially increased in order to induce the public to send their messages at the urgent rate. The question of laying further cables is under consideration.
Is it not a fact that before the War cables to India arrived in a few hours or at least in a day?
The War has made a great difference, but I am able to say that improvements are being rapidly effected.
To what extent are commercial cables to India delayed by Press cables and can the right hon. Gentleman offer any hope that the delay will be reduced?
I hope that all causes of delay between this country and India will be rapidly reduced.
Picture Postcard Messages
asked the Postmaster-General whether, in view of the fact that picture postcards bearing five-word messages are being wrongly surcharged in certain cases with a fine of 1d., he will issue, for the benefit of the public, an accurate definition of what constitutes a formula of courtesy or a conventional message, such as are permitted to be sent on such cards by the Post Office Regulation P. 386?
As I have previously informed my hon. Friend, the rule referred to has been in operation for about twenty years, and I do not think that it is so frequently misunderstood by Post Office servants as to require definition or amendment.
Is the right hon. Gentleman not aware that such mistakes have occurred? Has he not issued a publication containing merely the words: "A formula of courtesy or conventional messages," which, although they may be intelligible to public servants, are completely unintelligible to the public?
I am afraid errors occur with regard to all regulations and laws, but that is not usually considered a good reason for abolishing all laws and all regulations.
Circulars Posted Abroad
asked the Postmaster-General whether his attention has been called to circulars issued by Belgian firms in this country to British manufacturers and other firms, offering to print and post circulars, catalogues, company prospectuses, etc., for England in Belgium; whether he is aware that they point out the postage for 1,000 circulars in Belgium to England at the rate of exchange of 47 francs is £2 3s. 6d., while British postage in this country would be £4 3s. 4d.; whether, if such circulars are posted in Belgium, they would have to be delivered by the British Post Office here; and whether, in view of unemployment in this country in the printing trade, he proposes to take any steps to prevent work leaving this country through the present high postal rates?
I have seen a circular letter issued by a printing firm in Brussels which, from the figures quoted, appears to be the one referred to by the hon. Member. All circulars posted in Belgium and addressed to this country must be delivered in ordinary course, if prepaid, with the proper amount of postage. As I have previously stated, I cannot fix British rates of postage to meet the conditions produced by the depreciated currencies in certain foreign countries.
If the Post Office have to deliver these circulars which are posted in foreign countries, is it not the fact that the British Post Office must bear the greater part of the cost of delivery?
No, we only bear the cost at this end. My hon. Friend will see, if he studies the question, it would be impossible for us to fix our rates here on the depreciated currencies of foreign countries. Take, for instance, the case of Germany.
Printed Matter Rates
asked the Postmaster-General what is the rate for 8 oz. of printed matter posted in this country for China, and the postage on the same weight of printed matter sent from London to Birmingham?
The rate for 8 oz. of printed matter to China is 2d. The inland rate for a newspaper weighing 8 oz. is 1½d., and for other printed matter 2½d.
United States Postal Rates
the Post master-General whether he has received any advice from the United States Post Office of any increase in the postage rates from the United States to this country; and what is the present rate and weights for letters and printed matter from America to England?
The answer to the first part of the question is in the negative. The present postage rate for letters from the United States to England is two cents, per ounce, and for printed matter one cent, per two ounces.
Telephone Service
37.
asked the Postmaster-General whether his attention has been called to a statement made in evidence before the last meeting of the Select Committee on the Telephone Service to the effect that a telephone service controlled and administered by a Government Department could never be so efficient or economical as a service in the hands of a company, as it was impossible for a Government Department to discharge honest but inefficient servants; and will he say, in view of these considerations, what steps he proposes to take to secure the administration of these great business undertakings on business lines?
As the question is printed a sentence has been omitted which asked if the statement before the Committee was correct, and whether it also applied to the postal telegraph service.
I was not aware that the sentence had been omitted, and I can say nothing as to it, but I think my answer now will cover the point. If the statement was made that it is impossible for a Government Department to discharge inefficient servants, it is inaccurate The Post Office submitted to the Select Committee on Telephones a return showing the number of dismissals in London for inefficiency and other reasons during the past three years.
Is it not the fact that the statement before the Select Committee was one made by Lord Gainford and applied to the time when he held the position of Postmaster-General? Has any change been made in the management of the Post Office since then?
I have stated the present practice that officials of the Post Office were dismissed for inefficiency, and some have recently been dismissed for that cause alone.
asked the Postmaster-General, in connection with the new toll telephone exchange, if he will state whether a subscriber, who in error rings up the London trunk exchange instead of the London toll exchange, or vice versa, will be charged the double call fee, namely 3d., as a penalty for his carelessness or want of knowledge; if not, how the double charge will be avoided; and whether he can see his way to dispense with charging the 1½d. fee in communicating with the trunk exchanges, which are in fact only departments of the Post Office itself and might well be covered by the trunk fee?
A subscriber will not be charged a double local fee in the circumstances stated as he will be put through to the correct exchange at once and a ticket recording the local and trunk fee will be prepared at the correct exchange only. The 1½d. fee in connection with trunk calls forms part of the new tariff approved by the Parliamentary Committee.
Naval and Military Pensions and Grants
Children's Subsistence Allowance
asked the Minister of Pensions whether, in view of the fact that parents are now compelled to keep their children at an elementary school until the end of the term in which they complete their fourteenth year, he can see his way to continue the subsistence allowance for children of war widows until such period as the children are released from compulsory attendance?
I think my hon. and gallant Friend is under a misapprehension. Allowances in respect of children are granted under the Royal Warrant in all cases up to the age of 16, and in some cases beyond it.
Disability Pensions
asked the Minister of Pensions if he is aware that boards of guardians are taking into account amounts received as disability pensions when dealing with applications for outdoor or Poor Law relief; and will he state the views of the Ministry on this question?
The guardians are not empowered to disregard such a source of income as a disability pension when dealing with applications for relief. As at present advised, I see no ground for proposing legislation to deal with the matter.
When an ex-service man has to apply to the guardians for some form of relief, is not that proof that some reconsideration of his disability pension is necessary?
That is not the question on the Paper.
The question was put on the Paper, in order to call attention to this point.
Appeal Tribunals
asked the Minister of Pensions how many pensions appeals have been decided by the Lords Appeal Tribunal; in how many cases have the appeals been admitted, and in how many have they been refused; and whether he will consider the desirability of issuing in the case of each refusal a fuller explanation of the reasons, so as to minimise the disappointment of the appellants.
The number of appeals decided by the Statutory Pensions Appeal Tribunals for England and Wales since they were set up on 1st November, 1919, up to 23rd July, 1921, is 31,721. Of these 9,070 have been allowed and 22,449 disallowed. 202 have been withdrawn by the appellants. Every endeavour is made by the tribunals to send appellants away, whether successful or not, with the feeling that their cases have been dealt with fully, carefully, and sympathetically, and, though reasons for disallowing appeals are given in very many cases, it has been found inexpedient to give reasons in every case.
Peace Treaties
German War Criminals (Trial)
asked the Prime Minister whether, early in 1920, the Allies at his request temporarily relinquished their demand for the surrender of the German War criminals, provided for under the Versailles Treaty, in order that the Leipzig Tribunal should deal with the matter; whether at that time the Allies, in a note addressed to the German Government, expressly reserved their right to claim the handing over of the accused and to prosecute them before their own courts; and if he will state whether the British Government is responsible for the delay on the part of the Allies in exercising the rights reserved to them in the face of the recent events at Leipzig?
I have been asked to reply. The representatives of Germany made an offer to try persons accused by the Allies of breaches of the Laws of War upon evidence to be submitted before the Supreme Court in Leipzig, as an alternative to the surrender of those persons for trial by the Allies. The Allies acting in concert accepted this offer, while they reserved all their rights under the Treaty of Versailles. I cannot admit that there has been any delay on the part of the Allies as suggested in the question. The matter is one that must be dealt with by the Allies as a whole, that it may be so dealt with at their meeting next week.
Will this question come up, and will it be decided whether these criminals are in future to be tried in the respective countries which are putting forward the various cases? In other words, will it be decided whether prisoners whose names we are putting forward shall be tried here?
I will not say, as I am tempted to say, that the answer is in the plural; I would rather say that that is one of the matters which will be considered next week.
Can the right hon. Gentleman say how soon we shall have the translation which has been promised us of the evidence and judgments in the Leipzig trials?
It is now in the printers' hands, but I understand that the printers are not quite so expeditious as usual.
Vilna
asked the Prime Minister whether the Polish occupation of Vilna will be considered at the same time as the Franco-Polish action in Silesia at the forthcoming meeting of the Supreme Council?
The answer is in the negative. The question of Vilna is in the hands of the League of Nations.
Is the right hon. Gentleman not aware that M. Hymans, who is in charge of the Polish delegates, and the committee at Brussels, have declined to proceed with this case, and that the matter at present is not being dealt with at all?
I am not aware of that. The matter is in the hands of the League of Nations, and therefore is not one to be properly taken up by the Supreme Council.
Commodities (Prices)
asked the Prime Minister whether he is aware that the consuming public are unable to appreciate the reasons which are preventing them from benefiting by the lower price of coal at the pit-head and of meat and other food commodities in the country of production; and has he considered the possibility of nominating a panel of commissioners who, on a request made to the Government Department concerned by any organised section of consumers, could take evidence and report as to the fairness or otherwise of the prices charged?
I have been asked to reply. Such a panel as my hon. and gallant Friend suggests could only be invested with the proposed powers by legislation, and my right hon. Friend is not prepared to recommend this to the House.
Can the hon. Baronet say whether the Government is going to introduce legislation at all on this matter?
Statements have already been made that it is the hope of the Government to introduce a Bill to deal with trade combinations.
Ex-Service Men
Government Employés (Pee-War Offences)
asked the Prime Minister whether His Majesty's Government is aware that there are men in Government employ who served several years in His Majesty's forces in France and overseas during the Great War, and who left the forces with excellent records, and have returned to their Government employment, but are still being punished by having money deducted from their salaries in consequence of their having been guilty of some breach of discipline or Departmental Regulations before the War; and whether His Majesty's Government will treat their offences as being purged by their subsequent War service, and extend such clemency to those ex-service men as would prevent them suffering any further financial loss through their pre-War misconduct?
I am unable, on the information before me, to accept the general proposal implied in the question, but the treatment of individual cases is a matter for the Department concerned in the first instance. I understand that the hon. Member has in mind a particular case, into which I am making inquiries.
Investigating Board
asked the Prime Minister when the investigating board referred to in paragraph 9 of the third interim Lytton Committee Report will be set up; whether any ex-service men will be represented on this board; and, if so, what percentage?
I have been asked to reply. I beg to refer to the answer which I gave to the hon. Member for North Islington (Sir N. Moore) on the 28th ultimo.
How many boards is it proposed to set up, and is it not a fact that already 17,000 cases of this nature are waiting to be dealt with?
I am afraid I could not on the spur of the moment tell the hon. Member the number of boards, but I will ascertain it for him and let him know.
Civil Service (Casual Clerical Labour)
asked the Prime Minister whether he is prepared to abolish casual labour in a clerical capacity in the Civil Service so far as ex-service men are concerned whilst non-service substitutional staff are retained in a temporary capacity?
I have been asked to reply. In view of the additional expenditure arising out of the retention of unnecessary staff that would result from the employment on a temporary basis of all persons at present engaged in a casual capacity, I am not prepared to adopt the course recommended by the hon. Member. The substitution of ex-service personnel for temporary non-service personnel is being continued as in the past on the lines recommended by the Lytton Committee.
May I ask whether it is not the fact that all the present ex-service casual men were previously temporary employés, and whether they are put on a casual basis so that they can be sacked at a week's notice while their places are occupied by non-service men and women?
I am not informed, and should have to ascertain, whether the whole or any large proportion of the clerks on casual employment were previously on temporary employment. If the hon. Member desires information on that point, perhaps he would put down a specific question.
Is it not the fact that owing to their being put on casual instead of temporary employment, they are subject to only a week's notice?
Undoubtedly, that is the difference between temporary and casual employment. Temporary employés are entitled to a month's notice, and casual employés are entitled to less—a week, or whatever it may be. But there are large regions of employment in which it is impossible to conduct the work in a businesslike and economical manner without a certain amount of casual clerical labour.
Does not the hon. Gentleman recognise the fact that this presses very hardly on these casual employés, because it does not give their associations who are looking after their interests an opportunity of fighting their case?
Zinc Concentrates
asked the Chancellor of the Exchequer what is the total liability of His Majesty's Government in respect of the zinc concentrates purchased from the Zinc Producers' Association, Australia; and what steps the Government propose to take to dispose of those concentrates?
I have been asked to reply. All concentrates delivered to His Majesty's Government to date by the Zinc Producers' Association have been paid for. As regards the last part of the question, there are at present no inquiries for the purchase of these concentrates at prices which I am prepared to accept, but it is hoped that a sale may be effected shortly of concentrates in Australia for smelting there.
Will the hon. Baronet answer my question, which was: What is the total liability on the concentrates purchased—not whether they have been paid for?
All the concentrates which have been delivered so far have been paid for, and therefore at the moment there is no liability. There is, however, as my hon. Friend knows, a continuing contract in regard to future production, but, as I am unable to say what the future production will be, I cannot say what the future liability may be. At the moment there is no undischarged liability.
Have the Government any purchases over there which have not been delivered and have not been paid for, and for which they are liable?
Ireland
Settlement Negotiations
asked the Prime Minister whether, in view of the fact that the terms offered by the Cabinet to Sinn Fein have been disclosed to Dail Eireann sitting in secret Session, he will also announce the terms to the House of Commons, also sitting in secret Session, as soon as possible?
No, Sir, but the Prime Minister hopes to be in a position to make a public statement before the House rises.
Truce
asked the Prime Minister whether, if there is no provision in the truce terms for reasonable notice being given of the termination of the truce should negotiations break-down, he will arrange for such provision at the next conference with the Sinn Fein representatives, in view of the fact that a plan to attack Crown forces by surprise in the event of a break-down in negotiations has been discovered in at least one area?
Yes, Sir. It was agreed between the Prime Minister and Mr. de Valera at their conference that if the negotiations broke down, there should be reasonable notice of the termination of the truce.
Egypt
asked the Prime Minister if he will be in a position to make a statement on the Egyptian situation before the rising of the House; and whether it is anticipated that legislation will be necessary to give effect to any agreements come to or whether a treaty will be submitted to this House?
I cannot at present say whether it will be possible to make any such statement before Parliament rises, nor what form the agreement, if arrived at, will assume.
May we take it that no action will be taken without Parliament having a chance of being consulted, and while Parliament is up will action be deferred until the matter can be referred to Parliament?
I certainly could not give that pledge without full consideration of the relevant circumstances.
Can we be assured in any way that this question will be dealt with by a Bill and not by an Order in Council?
That is a question which I have already answered.
asked the Under-Secretary of State for Foreign Affairs whether the pro-Zaghlul newspaper Al-Nizam has been suppressed for six months, and, if so, why; whether the requests of Mohammed Sidki Pasha, an ex-Judge of the High Court of Appeal, and of Falhallah Barakat Pasha, member of the legislative assembly, to obtain a licence to produce newspapers have been refused; whether licences to produce newspapers have been refused to any persons who are in opposition to the Cabinet; and, if so, has he any information indicating that the continual suppression of party opposition newspapers is having the effect of reducing the state of unrest in Egypt?
The newspaper Al-Nizam has been suspended for six months by Ministerial decree on account of an attack on the Sultan published on 3rd July. I have no information with regard to the other matters referred to by the hon. Member.
Is not this a matter purely within the competence of the Egyptian Government?
That is so.
On a point of Order. May I ask whether it is competent for a question of this kind to appear on the Paper, as it is a question which wholly concerns the Egyptian Government, and has nothing whatever to do with the Secretary of State for Foreign Affairs?
I do not think that the Government of Egypt comes under that ruling. As far as I am aware, questions have been allowed in regard to Egyptian affairs.
This is an important constitutional point affecting the position of Egypt. Is it not a fact that His Majesty's Government has never accepted responsibility for the executive acts of the Egyptian Government?
Is it not a fact that Egypt at the present time has no self-Government, that there is no Parliament there, und that, therefore, the Government there is entirely dependent upon our force of arms.
Is it not a fact that if questions of this sort are admitted into Parliament there will be no room for the internal affairs of the United Kingdom?
May I ask whether questions arising from the internal government of a country which comes within the province of the British Empire and has been declared a Protectorate, are not in order in this House?
As I said to the Noble Lord, I think that the position of His Majesty's Adviser in Egypt is such that we have certain responsibility, and that is the reason why, until some change take place in the Government, these questions are permissible.
League of Nations
Assembly (British Representatives)
asked the Prime Minister whether he can now state the names of those who will represent this country at the Assembly of the League of Nations in September; and whether he will himself be able to attend any of its meetings?
The Prime Minister regrets that it will not be possible for him to attend the September meeting of the League. The Government have decided to appoint the Lord President of the Council (Mr. Balfour) and the Minister of Education (Mr. Fisher) to represent them. The third representative has not yet been selected.
Would it be convenient to my right hon. Friend if I put down a question on Thursday?
I cannot definitely say, but I should hope to be in a position to give an answer on Thursday.
Germany
asked the Lord President of the Council whether he has information indicating the intention of Germany to apply for membership of the Assembly of the League of Nations; and what will be the instructions to the British delegates in the event of such an application being made?
I have no information as to whether Germany intends to apply for membership of the Assembly of the . League of Nations, and it would be premature to anticipate the results of a discussion in the Assembly.
What would be the attitude of our delegates in the event of such an application as is rumoured being made?
I do not think they will receive any instructions from the Government.
As the right hon. Gentleman has himself been nominated as a delegate, will he state what he will do?
That is a hypothetical question.
Is it a hypothetical question to ask a Minister who is nominated as a delegate to the League of Nations whether or not he is in favour of the admission of Germany?
The question is in the event of something which is not known yet to have happened.
Housing (Office of Works' Expenditure)
asked the Chancellor of the Exchequer if the recent restriction of the housing programme will result in any saving on the Office of Works Estimate for this year?
All expenses incurred by the Office of Works in connection with the building of houses for local authorities are covered by an overhead charge. No question of savings, therefore, arises.
Has the right hon. Baronet's Department yet sent in a report about reduction?
Worn-Out Horses (Export)
asked the Minister of Agriculture what is the present position as regards the worn-out horse traffic; and whether he has yet made arrangements with the Dutch and Belgian Governments for the slaughter in this country of all horses not fully fit for work which are required for food abroad?
asked the Minister of Agriculture whether he has succeeded in his negotiations to put a complete stop to the traffic in horses which are exported to Belgium and Holland for slaughter; and, if not, what stage has been reached in such negotiations?
I gather from the report of the Conference, which took place in London on the 19th ultimo between representatives of the Ministry and of the various foreign Governments concerned, that no objection is likely to be raised in Holland or Belgium to the importation of horsemeat which is inspected before shipment by veterinary officers nominated by the Ministry, and I am now considering the administrative arrangements which may be necessary to encourage the conversion of the traffic in live animals, which are intended for food, into a trade in dead meat. The standard of inspection for horses intended for export is now very high, and I am satisfied that horses which are now being exported from this country may, in the strictest sense, be regarded as working horses.
Is my hon. Friend able to make a further statement as to the success of the negotiations?
Does my hon. Friend realise that, as this practice will recommence in the winter, it is essential that steps should be taken and that they should be thorough?
Yes, I am taking them, and they will be thorough. I think it will be found that any cruelty attaching to this trade which may have existed when the inspection was not as strict as it is to-day has entirely disappeared. If it has not, if any cases are brought to my knowledge, I shall promptly deal with them.
Biggin Hill Wireless Station
asked the Secretary of State for Air whether the Royal Air Force station at Biggin Hill is to be a permanent station; whether the wireless telegraph and telephone experimental work at present being carried out there is to be transferred shortly to Farnborough; whether certain constructional work at Biggin Hill station is being carried out by civilian firms; whether this work is likely to be completed before the station is abandoned; and, if the station is to be abandoned, why the contractors are being allowed to continue the work?
I have been asked to answer this Question. The transfer of the work of the instrument design establishment, Biggin Hill, to the Royal Aircraft Establishment, Farnborough, is under consideration. In any event an immediate move is not practicable, and certain minor building work necessary for maintenance is being carried out by civilian firms at Biggin Hill. Certain electrical installations are also being completed, but these can and will be transferred to other stations in the event of the transfer of the instrument design establishment to Farnborough.
New Tools, Walworth
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, who is responsible for the supply of new tools now being stored at Merrow Street, Walworth; whether every care is being taken to prevent damage; and whether a practical man is responsible for seeing that no waste or damage occurs?
The Controller of Supplies' Division of the Office of Works is responsible for the tools in question. The answer to the last two parts of the question is in the affirmative.
Socialist Sunday Schools
asked the President of the Board of Education whether any school buildings in London or the provinces, which are in receipt of a maintenance grant from public funds are used for Socialist Sunday or Proletarian schools; whether he is aware of the blasphemous and anti-religious teaching which is given in many of these schools: and whether he will see that no schools which are in receipt of a grant from public funds are allowed to be made use of in this manner?
I am not aware that the premises of any schools in receipt of grants from the Board of Education are used for such purposes.
Is the right hon. Gentleman aware that there is a very considerable number of such schools throughout the country aided by the Board, and are there no steps he can take to protect young people from such pernicious teaching?
Is the right hon. Gentleman aware of the excellent ethical teaching carried on in these Socialist Sunday schools, and will he see that exactly the same amount of assistance and encouragement is given them by His Majesty's Government as to the teaching of other religious topics?
This should be discussed outside.
Admiralty Yacht "Enchantress."
asked the Parliamentary Secretary to the Admiralty what is the next date at which the Admiralty yacht "Enchantress" will be used to carry one or more of the Lords Commissioners of the Admiralty about, and for what purpose; and what is the staff of servants provided for the Board of Admiralty in the regular complement of the ship?
In reply to the first part of the question, no programme has yet been arranged for the autumn inspections by the Board of Admiralty. In reply to the latter part, the servants provided for the Board in the complement of the "Enchantress" are: Two cabin stewards. One cabin cook. One officer's steward first class, for Admiralty apartments.
asked the Parliamentary Secretary to the Admiralty whether the Admiralty yacht "Enchantress" carries ten officers; whether he can state the number of the crew; and whether all of them are entirely withdrawn from war training in view of the fact that the vessel carries no armament?
The "Enchantress" carries ten officers and 190 men, making her total complement 200. The fact that the vessel carries no armament does not affect their war training, as the crew is changed and passes through the training schools in due course for qualification and re qualification as necessary. Further, on mobilisation, the whole of the crew with the exception of six is withdrawn and drafted to the Fleet.
River Lee (Pollution)
asked the Minister of Health whether he is aware of the polluted state of the River Lee; whether his Department has recently requested the Lee Conservancy Board to permit two local authorities in North-East London to discharge further sewage effluent into the River Lee; and whether, in view of the fact that there has been a serious outbreak of sickness amongst children living in the neighbourhood, he will take some steps to remove this danger to the health of the inhabitants of Hackney?
I am aware of the complaints which have been made, but I do not know which are the two local authorities in North-East London to which my hon. and gallant Friend refers. I understand that the Lee Conservancy Board have recently conferred with the Hackney Borough Council, and informed them of the measures which they are taking. I am advised that though the conditions are open to objection, and are aggravated by the serious drought, there is not evidence of any injury to health from the state of the river.
Women Panel Doctoes
asked the Minister of Health how many women physicians are at present acting as panel doctors; and, in that case, how many patients they have on their lists?
One hundred and seventeen women physicians are at present acting as panel doctors in England and Wales, and the number of patients on their lists is 40,686.
Why are there so few women doctors on the panel?
Because they do not apply.
Do they know that they are eligible?
Income Tax (Refund)
asked the Chancellor of the Exchequer whether he is aware that, notwithstanding the recommendation of the Royal Commission and the promise made by his predecessor, there are still grave complaints by payers of Income Tax of the delay and difficulty in obtaining refund of over-payments from the Inland Revenue; whether he is aware that this delay means real hardship to women with small fixed incomes; and will he have inquiry made with a view to its remedy?
I would refer my hon. and gallant Friend to the reply given to the hon. Member for South Kensington on the 13th June, of which I will send him a copy.
Does the hon. Gentleman think it right to keep women out of their money for six months at a time?
Of course, it is always the object of an administration to avoid all unnecessary delay.
Industeial Unrest (Bolshevik Propaganda)
asked the President of the Board of Trade whether his attention has been called to the report recently issued by Herr Linovieff, the President of the Executive of the Third Internationale, in which reference is made to the reports sent to Moscow by Herr Krassin as to the industrial situation in Great Britain and the instructions given to Krassin regarding the steps to be taken by him to foment industrial unrest, in order to stimulate the Communist movement in this country; and if he will state whether it was as the outcome of these activities that Krassin has been recalled to Russia?
I think my hon. and gallant Friend probably refers to M. Zinovieff. The only reference I have seen to such a report was in one newspaper. I have not been able to trace any confirmation of the report. I understand that M. Zinovieff has ceased to be a member of the Soviet Government. As already stated, the reply to the second part of the question is in the negative.
Wireless Operators
asked the President of the Board of Trade what progress has been made in the investigations of the Department into the allegations of inefficiency on the part of the watcher class of wireless operators, evidence in support of which allegations was submitted to him on 27th June; and whether the abolition of this type of operator is contemplated?
A proposal by the Association of Wireless Telegraphists that an alteration should be made in the statutory rules was received through the Seafarers' Joint Council on 22nd July, and is being referred to the Merchant Shipping Advisory Committee.
Was not the President of the Board of Trade prepared to take action in this matter himself, and effective action, and has he made any progress with the consideration of that?
National Saving Certificates
asked the Financial Secretary to the Treasury whether it is proposed to expend in the course of the year upwards of £100,000 on posters and advertising in connection with savings certificates; and when the publication of the savings magazine will be discontinued?
I do not anticipate that the expenditure on advertising savings certificates will amount to £100,000 during the current calendar year. The average weekly expenditure for the six months ended 30th June last—excluding the greater part of the period of the coal stoppage, when advertising was suspended—was £1,630. No appreciable expenditure will be incurred on bill posting during this year. The "Savings Journal" is the chief medium of communication with the large number of voluntary savings committees and associations throughout the country and it is not proposed to discontinue its publication. Since November last, however, it has been issued monthly instead of fortnightly. I may perhaps remind hon. Members that many millions a year are raised by the sale of certificates, and that the total administrative expenditure is a fraction of 1 per cent, of the sums raised.
Unemployment
Benefit (Married Women)
asked the Minister of Labour what will be the extra cost of the concessions as regards the payment of unemployment benefit to women promised by him to the deputation from the Workers' Union which met him on the 18th July; and will he consider whether it would be advisable that Parliament should be given an opportunity of expressing its opinion before such promises are made involving additional expenditure?
In view of representations made to my right hon. Friend, certain Amendments have recently been made in the instructions issued with regard to the payment of unemployment benefit to married women. These instructions were issued in the exercise of the administrative discretion vested in the Minister by the Unemployment Insurance Acts and he is satisfied that they are a proper interpretation of the provisions of those Acts. The increased amount of benefit that will be payable will be small relatively to the total, but the precise amount could not be ascertained without an elaborate and expensive inquiry, which would not be justified. I should add that the benefit is of course payable out of the Unemployment Fund and not out of the Exchequer.
Does the hon. Gentleman think it is advisable in the interest of economy that additional grants should be made to certain classes of working people without the House having any chance whatever of saying whether it is right or wrong?
I have already explained that the new instructions were issued in accordance with and within the ambit of the provisions of the Act itself.
Does not the hon. Gentleman think it would be advisable that the law should be made relevant and pertinent only to such Regulations as have been passed through Parliament and not this electioneering dodge?
That is a matter of legislation.
Domestic Service
asked the Minister of Labour the number of women receiving unemployment pay who have been recommended by the employment exchange to accept domestic service; whether he has any figures showing how many have done so; and what saving has been effected thereby?
It is part of the ordinary work of the exchanges to bring opportunities for employment in domestic service to the notice of unemployed applicants for whom it appears to be suitable, and I cannot give statistics with regard to this. I may point out, however, that some months ago the managers of the employment exchanges were instructed to make lists of the women registered as unemployed and making application for unemployment benefit who might be regarded as suitable for vacancies for domestic service. Further, I may point out that in the six months ended 8th July 77,000 vacancies in domestic service occupations were filled by women. Many of these women were at the time in receipt of unemployment benefit.
Can the hon. Gentleman say how many women get the £10 grant? Did they all get it?
Perhaps the hon. Member will give notice of that question.
Were these for daily or monthly occupations?
I cannot say without notice.
Fruit Picking (Female Labour)
asked the Minister of Labour whether his Department accepts any responsibility for the care and welfare of women and girls sent by an employment exchange in one district into another where there happens to be some demand for workers; and whether his attention has been called to a case in point in Lincolnshire where London girls were stranded in the fruit-picking districts and no official responsibility was admitted?
Before sending women or girls to employment at a distance on fruit-picking or seasonal agricultural work, it is the practice of the employment exchanges to make such inquiry as is practicable, in order to see that reasonable accommodation is provided. Experience has shown that this is essential. Further, the exchanges inform the applicants as fully as possible, before they start, with regard to the terms offered by the employer, and endeavour wherever possible to make arrangements so that the return fare may be secured. I am making full inquiries into the Lincolnshire case, and will let my hon. Friend know the result.
Poplar Borough Council (High Court Sentences)
( by Private Notice )asked the Minister of Health whether he is aware that the members of the Poplar Borough Council have been sentenced to prison for refusing to obey the Order of the High Court by levying rates called for by the London County Council, Metropolitan Asylums Board and other authorities; whether, in the circumstances and in view of the fact that the judges have all agreed that the Poplar Council have a clear case for relief, he will ask Parliament to grant such relief by introducing a short Bill further equalising the rates of London, reinstating and improving the Metropolitan Common Poor Fund, and to grant a loan to the poorer boroughs of London and the country in order to assist them to pay their way during the present abnormal period?
Before the right hon. Gentleman replies, may I ask him if he is aware that all this is done entirely for advertising purposes?
Is it within the bounds of order for an hon. Member to say that an hon. Member on this side is raising a question solely for advertising purposes?
I did not understand that the hon. Member cast any reflection upon the hon. Member for Dartford.
I am aware of the proceedings which have been taken against the Poplar Borough Council. The hon. Member must be aware that legislation on such a contentious subject is impossible during the present Session, nor can I provide a grant from public funds, but, in view of the official termination of the War on the 1st September, I am taking steps to bring to an end the present method of stereotyping payments from the Metropolitan Common Poor Fund, and this will afford substantial relief to the poorer boroughs, including Poplar. I may add that I trust that the Poplar Borough Council, having made its protest, will obey the Order of the Court and perform its Statutory duties.
In view of the statement in the question that the judges considered that there is a real case for relief, can the right hon. Gentleman see his way to take steps to afford that relief before the House rises?
I do not think it is my duty to criticise the statements of judges, nor is it advisable to bring them into this House; but I cannot accept the statement as a matter of fact that the judges have so agreed. What the judges agreed was that the members of the Poplar Borough Council were to go to prison for not carrying out the order of the Court.
If the order of the judges is carried into effect, does the Minister of Health propose to enforce Crown Colony Government in Poplar?
Question
Boarded-Out Horses (Harvest)
asked the Secretary of State for War whether Army horses boarded out with farmers are liable to be called up at the beginning of next month when the harvest is in full operation?
One of the conditions under which Army horses are boarded out is that they shall be available whenever required by the military authorities for the annual training of the Territorial Force. As the training season coincides with the harvest, I regret it is inevitable that some of the horses must be called up whilst harvest operations are being carried out.
Business of the House
Can the Leader of the House say what business it is intended to take on Friday, and will he announce the Order of the Votes for to-morrow's discussion on the Navy?
If the right hon. Gentleman will repeat his question about Friday's business to-morrow, I will then give an answer. As regards the order for the Navy Votes, I some time ago promised to take Votes 8 and 9 and the other Votes standing on the Paper. It has been brought to my notice that some hon. Members would like to alter the order, but I cannot do that except on request, by the general consent of the House.
May I appeal to the Leader of the House to accept the suggestion that Vote 12 should be given precedence to-morrow? My reason is that there is a very strong feeling in the House that great injustice is being done to naval officers in respect of their not receiving any marriage allowance, and the only opportunity for properly ventilating this question is on Vote 12. If Vote 8 runs out the whole time until 10 o'clock, there will be no opportunity during the remainder of this Session to raise this very important matter, which really amounts to a scandal.
Is not the whole greater than the part, and although the part may be very important is not the whole question of the Navy more important than a marriage allowance to certain officers of the Navy, however much it may be justified?
I cannot accept the hon. Member's (Rear-Admiral Adair's) statement of fact. As regards the order of the Votes, that is a matter of indifference to the Government, but having agreed to take them in their normal order, in deference to requests made through the usual channels, I cannot vary that except on request through the same channels. I gather that that would not meet the wishes of those who asked for Votes 8 and 9 to be put down first.
May I ask the Leader of the House whether it is intended to take the Railways Bill to-night beyond the end of Part III, or whether we shall then go on with the Licensing Bill?
I am sorry that I had not notice on this matter, as I am placed in a little difficulty, though I am not complaining of my hon. Friend. Normally, when the Guillotine is in action, if time be saved on a compartment, that time is the property of the House, and the Government is not entitled to take such time for other purposes. Accordingly, I think that the House is entitled to discuss the Bill up to Eleven o'clock, no matter whether we have passed the compartment or not, unless the House for some reason desires to adjourn the discussion.
Would it not be better to adjourn the discussion, so that we might have the debate on the Licensing Bill before we are all completely tired out?
Standing Committees (Chairmen's Panel)
reported from the Chairmen's Panel: That they had appointed Mr. Turton to act as Chairman of Standing Committee D (in respect of the Admiralty Pensions Bill).
Report to lie upon the Table.
Selection (Standing Committees)
Standing Committee D
reported from the Committee of Selection: That they had added the following Fifteen Members to Standing Committee D (in respect of the Admiralty Pensions Bill): Rear-Admiral Adair, Mr. Amery, Viscountess Astor, Sir Arthur Shirley Benn, Mr. James Bell, Sir Thomas Bramsdon, Commander Eyres-Monsell, Mr. Halls, Major Henderson, Sir Evan Jones, Mr. Macpherson, Rear-Admiral Sueter, Mr. Wallace, Mr. Hilton Young, and Mr. Robert Young.
Report to lie upon the Table.
Orders of the Day
Railways Bill
[3RD ALLOTTED DAY.]
As amended ( in Standing Committee A and in Standing Committee B ), further considered.
CLAUSE 26.—(Functions of tribunal.)
The Amendment standing in the name of the hon. Member for Middlesbrough (Mr. Thomson), to add at the end of the Clause the following paragraph
"( i ) The affording of reasonable facilities under Section two of the Railway and Canal Traffic Act, 1854, and Section twenty-five of the Railway and Canal Traffic Act, 1888, and Section two of the Railways (Private Sidings) Act. 1901—"
is out of order, as the matter to which it refers has already been dealt with under Clause 14. In reference to the Amendments standing in the name of the hon. Member for the Moseley Division (Mr. Hannon)—to insert at the end of the Clause the following new paragraphs
"( i ) The reasonableness or otherwise of the facilities and services afforded by a railway company for the carriage, collection, and delivery of merchandise;
( j ) Questions relating to undue or unreasonable preference;
( k ) All disputes between railway companies and traders which are not specifically within the functions of the tribunal but which are submitted to them with the consent of all parties concerned—"
the first paragraph is out of order, because the subject has already been dealt with under Clause 14, but the hon. Member can move the other paragraphs.
I do not propose to move the second or third paragraphs.
CLAUSE 27.—(Classification of merchandise.)
(2) The classification shall be divided into such number of classes containing such descriptions of merchandise as the committee think fit, and the committee in determining the class into which any particular merchandise shall be placed, shall in addition to all other relevant circumstances have regard to value, to the bulk in comparison to weight, to the risk of damage, to the cost of handling, and to the saving of cost which may result when merchandise is forwarded in large quantities.
I beg to move, in Sub-section (2), after the word "handling," to insert the words
"to the weight or quantity usually forwarded."
This Cause enumerates the matters which are to be taken into account by the rates tribunal when fixing the classification, and I think that we are already agreed that in making charges for those goods which are forwarded in large quantities the weight or quantity of the goods is a matter which should be taken into consideration. Under the proposal of the Rates Advisory Committee there are to be certain changes made, and certain rates which have been in operation for years are being challenged, and a new scale is being set up, which would mean raising the charges to those traders who are in the habit of sending goods in very large quantities. It is clearly much less expensive for a railway company to take a whole train-load from one destination to another, over a long distance, than to take goods in small quantities of less than truck-loads at a time. In the latter case much greater handling and more shunting are required, whereas in the case of the whole train-load the whole charge would practically be one for haulage and no more. For some reason or another this was omitted from the Bill in the provisions for classification, though it is clearly a matter for consideration which ought to be brought forward before the tribunal. Therefore I urge the Minister to have these words put in. They are not mandatory, but they specify a matter which will be considered by the tribunal when the occasion arises.
I beg to second the Amendment. I support what my hon. and gallant Friend has said in urging that special consideration should be given to the case of merchandise carried in large quantities.
I do not think that there is any difference- of opinion between the Government and the railways and those who are speaking on behalf of the traders as to the principle which I understand underlies this Amendment. The desire is that the Rates Advisory Committee—because, though the Rates Tribunal has been mentioned, this Clause deals with the duties of the Rates Advisory Committee— should have regard to the question of the decreased cost of carrying goods in large quantities. In the case of merchandise, it is desired by the Mover and Seconder that full consideration should be given to the question of decreased cost when the merchandise is carried in large quantities. If the Bill does not enable the Rates Advisory Committee, to have regard to that fact in fixing the classification, then I think we ought to put in something to that effect. But the concluding words of Clause 27 are that they shall
4.0 P.M.
That seems to me to meet the whole of the legitimate requirements of this Amendment. These words, I venture to suggest, are adequate to meet the desire of my hon. and gallant Friend, and, if in addition we introduce the words "the weight or quantity usually forwarded," we shall really be departing from the underlying principle that, in fixing the classification, the Rates Advisory Committee, or their successors, the Bates Tribunal, should fix the rate in proportion to the cost to the railway, or at any rate, having regard to that cost. If, in addition, you say that they are to have regard to the weight or quantity usually forwarded, you are getting away from the cost, and you are fixing a lower rate, not upon the ground of cost, but upon the ground of convenience. We are dealing with a classification which will apply at every stage on every railway all over Great Britain, and, if in that classification, which is a national classification, you are to have regard to the weight or quantity usually forwarded, you may have hundreds of cases where the weight or quantity usually forwarded may differ. I suggest that the Clause as it left the Committee adequately meets the point that classification should have regard to the reduced cost of carrying in large quantities, and that to insert these words would introduce a diverse set of considerations. I therefore hope that the Amendment will not be pressed.
The right hon. Gentleman has met one point, but he has not done all that is required. This is a Clause for formulating a new classification, and it has nothing whatever to do with the cost of carrying, which question arises after the classification has been formulated. An important factor in formulating a classification should be the weight and quantity usually forwarded, and, as a matter of fact, the Rates Advisory Committee have been and are at the present time working along those lines. I do urge the right hon. Gentleman to accept such an important Amendment from the point of view of traders who, as the result of habit, forward their merchandise in certain quantities. It has, for instance, because a habit that grain should be carried in two and four ton lots. Without these words of the Amendment, it would not be necessary for the Rates Advisory Committee to do more than class grain as grain. They have, however, already gone beyond that point, and I do beg the right hon. Gentleman to accept these Amendments which, trivial as they are to him, are of considerable importance to the traders of the country.
Might I ask the right hon. Gentleman when he is going to inform the House as to the name of the gentlemen who are going to compose the Rates Tribunal? He will remember that I asked this question in Committee, and I understood that the information would be given when we came to discuss this matter in the House.
I feel very strongly that the words of the Amendment would be surplusage. Surely, all that the Mover and Seconder of the Amendment want is provided for by the last words of Sub-section (2) of Clause 27. If the Amendment were carried, we should merely be saying the same thing twice over, and the implication in a lawyer's mind would be that something different was meant each time. There is no difference at all as to the principle that the weight or quantity usually forwarded is to be an element, but it would be unwise to put in words which might be held to conflict with the words already in the Clause, and which, I think, are really all that is required.
Might I ask for an answer to my question?
It would be hardly in Order on this Amendment.
This Amendment and the next two—in Sub-section (2), leave out the word "the" ["the saving of cost"], and insert instead thereof the word "any," and after the word "in" ["when merchandise is forwarded in large quantities"], insert the words "truck loads or other"—have been discussed and agreed with the representatives of the railway companies, but we are now confronted with an hon. Member representing the railway companies who objects.
I have no objection to the principle.
If the railway companies agree outside the House, and then put up a Member in the House to object we are in a difficulty. Perhaps my hon. and gallant Friend, however, was talking at a free lance. I would not have pressed this matter upon the Government if it were not for the agreement between the railway companies and the traders as to these three Amendments. Surely, where agreement has been arrived at, it is not unreasonable to incorporate the agreement in the Bill for the better satisfaction and working of the two parties who will have to carry it out. It is only in respect to a few points that matters of principle arise, and I do not understand that any principle arises here. The right hon. Gentleman has raised objection to these words as surplusage. Neither the traders nor the railway companies regard them as surplusage, and that is why I urge the House to accept them, unless it be shown that they do infringe some principle, which I do not believe.
I have no means of knowing what are alleged to be agreements arrived at between those who speak for the railways and those who speak for the traders, but throughout the proceedings I have done my best, where the public interest has not been prejudiced, to accept agreements between those who speak for the two sides when they have exposed their agreements to me. This looks to me to be a hurried Amendment, because it does not seem necessary. There is no dispute as to the principle involved. It has been a tenet of the whole of my railway life that if merchandise be forwarded in a manner which enables economies to be made, a share in those economies should be represented in the rates charged. That is a sound principle, and it is one of the only ways in which we can get economy. We have said that they are to have regard to the saving of cost which may result if merchandise be forwarded in large quantities. I accept that principle, and it is in the Bill. What possible good could it do, therefore, to say that the rate must be lower if the merchandise be forwarded in economic quantities? I was very much struck when my hon. and gallant Friend moved the Amendment. He talked as though he did not realise that there were these words at the end of the Clause, because he actually used them inadvertently. He said that they ought to have a saving in cost when the goods were forwarded in large quantities. I noticed that he used the very words which we use. No hon. Member who has spoken in favour of the Amendment has shown why these words do not give what is wanted. If they do not, I am prepared to reconsider them. We have agreed to the principle, and it will not be difficult, if the two parties be agreed, to insert an Amendment in another place. I suggest, therefore, to keep the Bill as least complicated as possible, that we be content now with the words in the Clause, and, if they do not give that which is desired, let us move an Amendment in another place. I undertake to do that if representation be made to me that the present words do not meet the case.
Amendment, by leave, withdrawn.
CLAUSE 28.—(Submission of schedules of charges)
(1) The constituent companies in each group shall jointly submit to the Rates Tribunal not later than the thirty-first day of December, nineteen hundred and twenty-two, or such later date as the Minister may allow, a schedule of the standard charges proposed to be made by the amalgamated company into which they are to be formed, according to the classification fixed as aforesaid, and shall (except as hereinafter provided) show in that schedule the rates for the conveyance of merchandise, the amounts of terminal charges, and the fares for the conveyance of passengers and their luggage, and every such schedule shall be published in such manner as the Rates Tribunal may direct.
The next two Amendments—in Sub-section (1), after the word "companies" insert the words "or any one or more of them," and leave out the word "jointly"—standing in the name of the hon. and gallant Member for Durham (Major Hills), are, I think, covered by the Government Amendment which follows.
Yes, Sir.
I beg to move, in Sub-section (1), after the word "jointly," to insert the words "or with the consent of the Rates Tribunal any one or more of such companies may."
The Clause, as it at present stands, provides for the submission by the constituent companies to the Rates Tribunal of a schedule of charges upon which the standard charges will be based. The Clause provides that constituent companies shall jointly submit that schedule. It is conceivable that they may not be able to agree, and this Amendment provides that where they do not jointly submit a schedule the Rates Tribunal may authorise any one or more of such companies to submit a schedule.
Amendment agreed to.
CLAUSE 31.—(Obligation to charge standard charges.)
On and from the appointed day the charges appearing in the schedule of charges as fixed by the Rates Tribunal for each amalgamated company (in this Part of this Act referred to as "the standard charges") shall be the charges which that company shall be entitled to make for all services rendered in respect of which charges are fixed, and no variation either upwards or downwards shall be made from such authorised charges unless by way of an exceptional rate continued, granted, or fixed under the provisions of this Part of this Act, or by way of a special rate granted for a special purpose thereunder, or in respect of competitive traffic in- accordance therewith, or unless, in the case of fares, the conditions under which fares below the standard fares may be charged as prescribed by the Rates Tribunal are complied with.
I beg to move, after the word "rate" ["an exceptional rate"], to insert the words "or an exceptional fare."
When this part of the Bill was dealt with in Committee, the Clause which is now Clause 40 was included. That Clause provides for exceptional fares. It is therefore necessary to make the alteration in this Clause.
Amendment agreed to.
I beg to move to leave out the words, "or by way of a special rate granted for a special purpose there-under."
This Amendment is made necessary by the proceedings of the Standing Committee relating to a later Clause. As the Bill was presented to the Committee, in Clause 34, Sub-section (2), there was a provision that the railway companies might in special isolated cases make a special quotation to traders for traffic. Afterwards there was a long discussion upon exceptional rates and as a result of that discussion something like common consent was reached and the exceptional rates were made to operate more promptly than would have been the case under the Bill originally. In consequence of that the special rates granted for special purposes disappear from the Bill, and I move to leave out these words.
Amendment agreed to.
Further Amendment made: Leave out the words,
"or unless, in the case of fares, the conditions under which fares below the standard fares may be charged as prescribed by the Rates Tribunal are complied with."—[ Mr. Neal. ]
CLAUSE 32.—(Application of schedules to non-amalgamated companies.)
As respects railway companies, other than light railway companies and railway companies whose powers of charging have since the fourteenth day of August, nineteen hundred and nineteen, been increased by special Act either generally or in relation to any particular class of traffic, the Rates Tribunal shall apply to each such company the schedule of charges of such one of the amalgamated companies as, after giving the company in question and all other parties whom they consider to beentitled to be heard before them an opportunity of being heard, appears to the tribunal to be most appropriate to the case of that company, and may so apply it either without modification or subject to such modifications as the tribunal may think fit; and where a schedule has been so applied to any company, the last foregoing Section shall apply to the company as if it were an amalgamated company.
I beg to move, after the word "after" ["companies as, after giving the company"], to insert the words
"considering any objection thereto which may be lodged within the prescribed manner and after."
These words are necessary partly from the point of view of drafting. Clause 29 provides that the Rates Tribunal shall consider the schedules of charges submitted to them and any objections thereto which may be lodged within the prescribed time and in the prescribed manner. Clause 32 gives the parties interested a right to appear and be heard and to have objections considered.
I beg to second the Amendment.
This seems to be an improvement on the Bill, and I accept the Amendment.
Amendment agreed to.
CLAUSE 33.—(Repeal of existing provisions.)
(1) As from the appointed day all statutory provisions, and the provisions of all agreements with respect to classification of merchandise and with respect to charges for or in connection with the carriage of merchandise or passengers by any railway which becomes a railway of an amalgamated company, or of a railway company to which any schedule of standard charges is applied, shall be repealed and cease to be operative, except so far as any statutory provision authorises for the purpose of calculation of distance a special mileage to be allotted in respect of any portion of a railway, and except so far as, in the case of any such agreement or in the case of a statutory provision fixing a special charge, it may be continued under the provisions of this part of this Act or by an Order of the Rates Tribunal:
Provided that nothing in this Act, shall, except as otherwise expressly provided, affect the provisions of Section six of the Cheap Trains Act, 1883 (which relates to the conveyance of His Majesty's forces and matters connected therewith).
(2) The rates not exceeding twopence per ton per mile chargeable under paragraph (v) of Sub-section (1) of Section six of the Cheap Trains Act, 1883, shall be subject to modification in like manner and on the like principles as if they were exceptional rates, and as so modified shall as from the appointed day have effect as respects every such railway as aforesaid; but where, in relation to any amalgamated company, a general modification of exceptional rates is made in pursuance of this part of this Act, the said rates as so modified shall, as respects that company, be subject to a corresponding modification.
(3) Where it is proved to the satisfaction of the Rates Tribunal that any charge in operation on the fourteenth day of January, nineteen hundred and twenty, and fixed under any agreement or special statutory provision was originally so fixed for valuable consideration, the Rates Tribunal shall, and in any other case may, by Order continue the charge, subject to such modification as to the tribunal may appear fair and equitable, and in making such modification the tribunal shall, as far as practicable, provide that the position of persons entitled to the charge shall not, relatively to other persons, be prejudiced or improved.
I beg to move, in Subsection (1), after the word "shall' ["charges is applied, shall be repealed"], to insert the words
"to the extent to which these provisions relate to the matters aforesaid."
The Clause repeals various statutory provisions and abrogates certain agreements, because they are otherwise provided for. When the matter was before the Standing Committee the learned Solicitor-General for Scotland was asked whether the Clause meant that from the appointed day all statutory provisions and the provisions of all agreements, in so far as they related to certain matters, were repealed. The learned Solicitor-General stated that that was his view. The hon. and gallant Member for Newcastle (Major Barnes) asked that words should be inserted to make that clear, and this Amendment is moved to redeem that promise.
Amendment agreed to.
The next Amendment, in the name of the hon. Member for Middlesbrough (Mr. T. Thomson) is to insert after the word "charge" ["fixing a special charge it may"], in Sub-section (1), the words, "toll, and way leave." Perhaps the hon. Member has not observed the definition Clause 56?
I have referred to that, and I found that, although the word "toll" was covered, the word "way-leave" was not covered in the definition.
I am advised that "wayleave" is included in "charge." In any case Clause 56 will be the right place in which to raise the point. With regard to several following Amendments on this Clause it would be for the convenience of the House if I indicated how I propose to take them. The first Amendment, in the name of the hon. Member for St. Helens (Mr. Sexton) to insert a new Sub-section (2), is out of place here and the substance of the first part of it is covered by certain Government Amendments which come later. The remaining part of the hon. Member's Amendment is a proviso not dealt with in later Amendments, and I shall call upon the hon. Member to move it when we reach the end of line 21 of the Clause.
The Minister of Transport and his very able colleague have practically met the intention of my Amendment. We had an assurance in Committee upstairs that the rate basis would be secured. The ways of democracy are so wonderful and strange that the right hon. Gentleman may not be here to interpret this Clause in the next Parliament. In any case I do not propose now to move my Amendment.
I beg to move to leave out Sub-section (2).
This Sub-section was specially put in for the purpose of securing that the charges against the Government for conveyance of troops and materials under the Cheap Trains Act should be regulated in the same way as other exceptional or special charges; that is to say, that the Government should not continue to have the right to the very low scale of charges fixed by the Cheap Trains Act, but that that scale should become the base and that the increases upon it should be in conformity with the increases made in other cases. Since that Sub-section was put down we have remodelled Subsection (3). We can achieve our object by adding a few words to Sub-section (3) and deleting Sub-section (2).
Amendment agreed to.
The next Amendment on the Paper, in the name of the hon. Member for Middlesbrough (Mr. Thomson), to leave out Sub-section (3) and to insert a new Sub-section, is out of place where it stands. I think his point would come in further down on the Paper.
I beg to move, at the beginning of Sub-section (3), to insert the words:
"In the case of the rates fixed under paragraph (v) of Sub-section (1) of Section six of the Cheap Trains Act, 1883, or in any case."
This Amendment is consequential on that which I have just moved.
I am not quite clear about the effect of this Amendment, and I shall be glad if the Parliamentary Secretary will kindly tell me what happens in regard to the 2d. per ton per mile. Is that repealed?
It is necessary to read Subsection (3) as it will stand if this Amendment and another are made. The Subsection will then read:
"In the case of the rates fixed under paragraph (v) of Sub-section (1) of Section six of the Cheap Trains Act, 1883, or in any case where it is proved to the satisfaction of the Rates Tribunal that any charge in operation on the fourteenth day of January, nineteen hundred and twenty, and fixed under any agreement or special statutory provision was originally so fixed for valuable consideration, the Rates Tribunal shall, and in any other case may, by Order continue the charge, subject to such modifications as to the tribunal may appear fair and equitable, and in making such modification the tribunal shall, as far as practicable, provide that the relative position between persons entitled to the charge and other persons as existing on the said fourth day of August shall not be prejudiced or improved."
This Amendment is put in to deal with such cases as one which the hon. Member for St. Helens (Mr. Sexton) had in view, where there is a specially low statutory charge for good consideration. That charge is liable to be increased, but not out of proportion to the relation which it now bears to existing charges.
I am not quite clear yet, doubtless because of my stupidity. We are dropping out a Sub-section which deals with rates not exceeding 2d. per ton per mile, chargeable under paragraph (v) of Sub-section (1) of Section 6 of the Cheap Trains Act. What happens to it?
That statutory charge in favour of the War Office is maintained with the modifications of Sub-section (3); that is to say, the 2d. is increased, but the relative proportion between the War Office charge under the Cheap Trains Act and the ordinary charges is maintained.
It is still subject to the Rates Tribunal?
Yes.
I am slower even than my hon. Friend opposite and I do not appreciate whether the Parliamentary Secretary has done what was originally intended, namely, to get rid of this charge under the Cheap Trains Act so far as the carriage of stores of His Majesty's forces is concerned. Subsection (3) as it would be amended directs the tribunal to continue a rate subject to any modification which they may think fair and equitable, but it certainly does not go so far in that direction as the original proviso of Clause 33. I do not quite appreciate how the Rates Tribunal is to fix what appears to be fair and equitable in relation to that 2d. If my hon. Friend opposite is satisfied that he understands exactly what is being done and that it carries out the intention declared by the Parliamentary Secretary, I am satisfied also, but I cannot at present see that what the Parliamentary Secretary has stated is the effect of the Amendment.
I understand the matter is now entirely within the jurisdiction of the Rates Tribunal. If there is any doubt arising as to this, between now and the passing of the Bill, I presume my right hon. Friend will see that it is set right.
The point is this: The original Sub-section was put in after a conference with the War Office and the War Office accepted the arrangement, that as there was to be a general increase in rates, these particular rates should be proportionately increased, and should bear the same relation to the ordinary rates as they did before. That was the intention. Since then we have made various modifications in the Bill, and by the insertion of three lines, I am advised, we get exactly the same effect, it being provided that the War Office shall pay relatively the same rates as they did before, but on a higher level. The War Office is satisfied. That is what we set out to do, and that is what we are advised by the Parliamentary draughtsman is the effect of what we have done. If we are wrong, of course, it will be gone into.
Amendment agreed to.
I beg to move in Subsection (3), to leave out the words "fourteenth day of January, nineteen hundred and twenty" and to insert instead thereof the words "fourth day of August, nineteen hundred and fourteen."
The date 14th January, 1920, was inserted with reference to charges made by railways in consequence of the directions given by the Ministry of Transport. It has been pointed out to the Government since then that in some cases, notably in the case of the St. Helens and Widnes Railway, this would not have the effect desired.
This matter was fully gone into in Committee, and it is as a result, I think, of the conversations which took place in Committee that these Amendments have appeared on the Paper on behalf of the Government and on behalf of several hon. Members. I only ask an assurance in order that we may have it on record, because I know there is some hesitation and doubt in certain traders' minds as to whether they are entirely and completely covered. I may again call attention to what took place in various parts of the country, including the St. Helens and also Middlesbrough districts, under the Ministry of Transport Act, whereby ancient agreements confirmed by subsequent Orders were upset, and the traders and the public were mulcted in heavier charges. Some of the traders are not yet satisfied, even with the revised wording, that this will completely cover them and will render null and void actions which were taken under the Ministry of Transport Act. I only ask for an assurance to satisfy them that they are completely covered, and that their position under this will be the same as their position before the Transport Act was passed.
I always hesitate about giving a dogmatic answer to a question which is put for the first time. Everyone must construe the Bill as it is now for themselves. The intention of the Government by this alteration is to make the base charge that which existed on the day of the outbreak of the War.
Amendment agreed to.
I beg to move, in Subsection (3), after the word "any" ["fixed under any agreement"], to insert the word "subsisting."
This is to ensure that where any agreements have lapsed since the 4th August, 1914, they shall not be regarded for the benefit of some trader. If they are lapsed they are gone altogether, and therefore we propose to put in the word "subsisting."
Amendment agreed to.
I beg to move, in Subsection (3), to leave out the words
"the position of persons entitled to the charge shall not, relatively to other persons," and to insert instead thereof the words "the relative position between persons entitled to the charge and other persons as existing on the said fourth day of August shall not."
This Amendment is a verbal one, and its object is to relieve doubts which have been expressed to the Government as to the meaning of certain words in the Clause as it stands. We seek to make the meaning of the words "relatively to other persons" clearer by the substitution of the words which I now propose.
Amendment agreed to.
The remaining two Amendments on Clause 33 are out of order. They refer to the Bill as a whole and therefore they should have been brought up as a new Clause.
CLAUSE 34.—(Subsequent modifications of standard charges.)
Any amalgamated company or any railway company to which a schedule of standard charges has been applied, or any representative body of traders or any person who may obtain a certificate from the Board of Trade that he is, in the opinion of the Board of Trade, a proper person, shall be entitled at any time to apply to the Rates Tribunal to modify the standard charges or any of them, or any conditions relative thereto, and if any such company or body of traders or person, as the case may be, prove to the satisfaction of the Rates Tribunal that the standard charges or conditions or any of them ought to be modified, the tribunal shall make such modifications as they think fit, and shall fix the date as from which the modified standard charges or conditions shall be effective:
Provided that Sub-sections (3), (4), and (5) of Section fifty-eight of this Act shall apply to any application for a general revision or variation of standard charges under this Section as if such application were a review of standard charges and exceptional rates under Section fifty-eight of this Act.
The Amendment standing in the names of the right hon. Member for Norwich (Mr. G. Roberts), and the hon. Member for South Down (Mr. MacVeagh), referring to light railways, should be brought up on Part V, Clause 71, Sub-section (4), which deals with light railways.
I beg to move to leave out the words "and (5)" [Sub-sections (3), (4), and (5)"], and to insert instead thereof the words " (5) and (6)."
My object in moving this Amendment is to have Sub-section (6) of Clause 58 included1 in this Clause as well. I think it is clear that Sub-section (6) of Clause 58 is required here, in view of the modification of standard charges, and I hope the Government will accept the Amendment. If hon. Members will refer to Clause 58 they will see that Sub-sections (3), (4), and (5) are made applicable under this Clause 34, and I am asking that Sub-section (6) should be made applicable as well.
I beg to second the Amendment.
This is really giving effect to a Sub-section dealing with general revisions which, I think, we in serted by agreement upstairs, providing that ancillary services, and their results, shall be taken into account. It is really consequential to that extent, but it could not be inserted upstairs because the other Clause came subsequently.
I daresay it is all right, but it is rather hard to follow. All we have heard so far is that the words "and (6)" be inserted. Clause 58 is for the periodical review of standard charges and exceptional rates, and Sub-section (6), which is the one my hon. Friend wishes to include here, provides that the Rates Tribunal, when modifying charges on any such review, shall have regard to the like considerations as when fixing charges in the first instance. I do not quite see where the question of ancillary service comes in. The Sub-section simply means that the tribunal shall act on the same considerations in a subsequent review as they did on their first recommendations. The Minister has referred to ancillary services, and I should like him to explain.
Sub-section (6) of Clause 58 seems to be a very inoffensive sub-section, and I should have thought it to be quite unnecessary. In all probability the tribunal, in any case, would have regard to the same considerations which animated them in fixing the charges in the first instance. The marginal note to Clause 58 is
"Periodical review of standard charges and exceptional rates."
Clause 34, where I understand the hon. Gentleman wishes to insert this, deals with subsequent modifications of standard charges. I cannot see anything whatever about ancillary services.
There are three processes. There is Clause 57 which fixes the adjustment of charging powers to revenue, and in Sub-section (4) of that Clause there is a provision about ancillary services. Then Sub-section (6) of Clause 58 commences with the words "Subject as aforesaid," and I understand my hon. Frriend by his Amendment desires to introduce into this Clause, "subject as aforesaid," the provision of Subsection (6) of Clause 58, in order to avail himself of the advantages of Sub-section (4) of Clause 57. Clause 34, with which we are dealing, provides for subsequent modification of standard charges and, therefore, by this sequence of references, we arrive at this, that ancillary services—by which is meant steamers and docks and all that sort of thing—have to be considered in the subsequent modifications of standard charges, if I am correctly interpreting what the hon. Member desires. Perhaps he himself could explain it to the House better than I can.
May I ask whether or not a dictionary explaining this Bill will be available.
It is quite clear the Government do not know what this means when the hon. Member who moved the Amendment has been asked to explain.
I know what it means, but I do not know whether my hon. and gallant Friend knows.
Will it apply to railway hotels? Will the Rates Tribunal be expected to be hotel experts and to be able to tell whether hotel businesses are economically managed by a railway company? Will they start investigating the salaries paid to hotel managers by railway companies? The gentlemen on the Rates Tribunal may be very excellent gentlemen, but they cannot possibly know everything about everything. They may know something about railways, but how can they engage in investigating hotels and things of that kind, which I presume are included in ancillary undertakings? I agree with the right hon Baronet the Member for the City of London (Sir F. Banbury) that there is no dictionary that is going to throw any light on the subject unless there is a dictionary attached to the Act itself explaining what an ancillary undertaking is. I think the hon. and learned Member for Central Bristol (Mr. Inskip) will agree that it would include hotels, steamships, and every undertaking in which a railway company is engaged, and 1 think the Minister might tell us whether that is his view.
Assuming that the House agreed that any consideration that ought to be taken into account on the first fixing of the rates ought equally to be taken into account on subsequent fixings, shall we by allowing this Amendment to go through be precluded on Clause 57, sub-Clause (4), from raising the point of the ancillary charges and the proper way they should be accounted for?
No, I think not. I think that is the proper place to raise it, and I do not see that there is anything in this Amendment which pledges us to a view of those ancillary services.
Amendment agreed to.
I beg to move, after the word "charges" ["or variation of standard charges"], to insert the words "of an amalgamated company."
As the proviso to the Clause stands, it might apply to the case of a revision of standard charges in reference to a company which is not an amalgamated company. It is impossible to apply the principle of Clause 58 to such a company, as no standard revenue would have been fixed for it, and it is to put that matter right that I move this Amendment.
I take it that this is to cut out companies that" are not in the scheme at all, and, if so, what happens with regard to the railways under the Cheshire Lines Committee? Are their rates fixed as at present, statutory rates with an appeal to the Railway and Canal Commissioners? I think the traders and others would like to know what happens with regard to the fixing of rates in those cases.
The standard charges of one of the groups will be applied subject to modifications, if modifications are necessary.
But what happens to railways right outside the Schedule altogether?
Amendment agreed to.
CLAUSE 42.—(Settlement by tribunal.)
(1) The Rates Tribunal shall consider the terms and conditions so submitted, and after hearing all parties whom they consider entitled to be heard, together with any representative body of traders who may desire to be heard or any person who may obtain a certificate from the Board of Trade that he is, in the opinion of the Board of Trade, a proper person, shall settle, and when settled publish in the London and Edinburgh Gazettes, the terms and conditions which they consider just and reasonable, and shall fix a date, not earlier than two months after such publication, upon which those terms and conditions are to come into force.
(2) When the terms and conditions so settled come into force they shall be the standard terms and conditions of carriage for all railway companies and shall be deemed to be reasonable.
I beg to move, in Subsection (1), after the word "submitted," to insert the words
"or, if the companies fail to submit terms and conditions within the time allowed, shall themselves prepare and publish provisional terms and conditions."
By Clause 41 of the Bill an obligation is placed upon the constituent companies within six months of the passing of the Act, or such extended time as the Rates Tribunal may permit, to submit to and publish terms and conditions, known as "company's risk conditions," upon which they are prepared to carry merchandise, and also " owner's risk conditions," and also terms and conditions as to damageable goods not properly protected by packing. Then Clause 42 prescribes that the tribunal shall consider the terms and conditions so submitted, but the companies might not have submitted those terms and conditions, and therefore we move to provide that, in that event, the tribunal itself shall prepare and publish provisional terms and conditions.
I beg to move, as an Amendment to the proposed Amendment, to leave out the word "shall," and to insert instead thereof the word "may."
As I understand it, if the Government Amendment be carried, the Clause will read:
I hope the right hon. Baronet will not press his Amendment. Subsection (1) of Clause 42 begins by saying
"The Rates Tribunal shall consider the terms and conditions so submitted."
That imposes an obligation on the tribunal to consider the terms submitted. Now he proposes to say that if terms and conditions are not submitted, there shall be no obligation on the tribunal to fix new terms and conditions. If you are going to create an obligation on the tribunal to consider the terms and conditions submitted, I think you must equally use words of obligation when you say that they are going to create terms and conditions themselves. I quite follow the point which the right hon. Baronet made as to whether or not there might be an inconsistency between this word "shall" in Clause 42 and the provision at the beginning of Clause 41, but I think I can supply an explanation which will satisfy him. If he refers to Clause 41, he will see that the Rates Tribunal may extend the time within which a company may submit terms and conditions, and so, although you put the word "shall" in in Clause 42, the Rates Tribunal have under Clause 41 complete power to say, "We are not going to fix these terms and conditions at present; we think it is a case where the company should be given further time, and we shall extend the period." Therefore, I think the Amendment moved by the Parliamentary Secretary is right and is not inconsistent with Clause 41.
5.0 P.M.
As long as it is clear that the Rates Tribunal has power to extend the six months, I have no objection to the Amendment being put in. The right hon. and learned Gentleman saw my point, but I do not think he quite answered it. Do I understand from him that he thinks it could not be held by any Court that the Amendment compelled the Rates Tribunal at the end of six months to issue terms and conditions, notwithstanding the words in Clause 41? In other words, do the words in Clause 42 which are proposed to be put in override the words in the previous Clause?
I think a very simple alteration would settle the point, and that is to insert the word "so" before the word "allowed" in the Amendment, so as to make it read "within the time so allowed."
I will withdraw my Amendment, and move it in the form you, Mr. Speaker, have suggested, if the Government will accept it.
Amendment to the proposed Amendment, by leave, withdrawn.
I beg to move, as an Amendment to the proposed Amendment, after the word "time," to insert the word "so."
I think that can be accepted.
Amendment to proposed Amendment agreed to.
Proposed words, as amended, there inserted in the Bill.
CLAUSE 45.—(Owner's risk rates.)
(1) In settling a schedule of charges, or within twelve months or such longer period thereafter as in any case the Minister may allow, the Rates Tribunal shall determine what reductions shall be made from the standard charges for any merchandise carried by railway under owner's risk conditions to the carriage by railway of which a risk of damage attaches, and such reductions shall be shown or indicated in the schedules in such manner as the tribunal prescribe.
(2) Where an exceptional rate is in operation and the conditions applicable to that rate are the company's risk conditions, or, as the case may be, the owner's risk conditions, and a difference exists in the company's liability under the two sets of conditions in respect of the merchandise in question, the company shall on request in writing by a trader quote a corresponding rate under the other conditions, and, if within twenty-eight days from such request the company fails to quote such a rate to the satisfaction of the trader, the trader may apply to the Rates Tribunal, and the tribunal shall settle such corresponding rate and determine the date as from which it is to come into operation.
I beg to move, in Subsection (1), to leave out the word "In" ["In settling a schedule"], and to insert instead thereof the word "When."
This is a verbal alteration, made necessary by an Amendment in the Bill in Committee.
Amendment agreed to.
I beg to move, in Sub section (1), after the word "any" ["for any merchandise carried"], to insert the word "damageable."
This is the first of a series of Amendments put down by the Government to this Clause, with a view of making it quite clear. As amended, Sub-section (1) will read—
I have heard of perishable merchandise, but I have never heard of damageable merchandise. I should have thought that all merchandise, in certain circumstances, would be damageable. If two goods' trains were to run into each other, I think it is quite certain a great portion of the merchandise would be damaged, and, therefore, it would be damageable merchandise. I do not know what the object of putting in the word "damageable" is. I think it might lead to some discussion, and possibly some litigation, and one does not want to put in a word that would cause additional trouble. If it be inserted, there ought to be some definition put in at the end of the Bill.
With great respect to my right hon. Friend, I do not think the Rates Tribunal would find any difficulty at all in interpreting this common English word. They would interpret reasonably, and in the light of common sense, the classes of merchandise for which an owner should be allowed a rebate from the company's risk rate, if he himself accepts the obligation of carrying any loss which arises in transit in the ordinary way. I do not think it would be necessary to include a definition of the word "damageable."
Amendment agreed to.
Further Amendment made: In Subsection (1), leave out the words "to the carriage by railway of which a risk of damage attaches."—[ Mr. Neal. ]
I beg to move, in Subsection (2), to leave out the words "a difference exists," and to insert thereof the words "the difference."
There is a subsequent Amendment to this, namely, after the word "question," to insert the words "is not insignificant." Sub-section (2) provides that where an exceptional rate is in operation, distinguishable from the standard rate, which is dealt with in Sub-section (1),
Amendment agreed to.
Further Amendment made: In Subsection (2), after the word "question" ["merchandise in question"], insert the words "is not insignificant."—[ Mr. Neal. ]
CLAUSE 47.—(Minimum rates.)
An amalgamated company or a railway company to which a schedule of standard charges has been applied shall be entitled to charge for the conveyance of merchandise as for a minimum distance of such number of miles as the Rates Tribunal may determine, or such minimum sum as the Rates Tribunal may determine, and the Rates Tribunal may fix greater minimum distances or higher minimum sums where the conveyance is over the railways of two or more such companies, but such minimum distances or minimum sums shall not vary according to whether charges for station terminals are or are not made.
The Amendment standing in the name of the right hon. Member for Norwich (Mr. G. Roberts)—after the word "applied," to insert the words "or any light railway company—" is one that should come in on Clause 71, Sub-section (4).
I beg to move to leave out the words "or minimum sums" ["such minimum distances or minimum sums"].
It is purely a clerical error which this Amendment remedies. The Clause deals with minimum rates, and provides that a railway company may charge for a minimum distance in respect of a number of miles prescribed by the Rates Tribunal, or, as an alternative, they may charge a minimum sum to be determined by the tribunal. The Clause goes on to say:
The Clause is one of only 11½ lines, and it contains the word "minimum" five times, and the marginal note is "Minimum rates." "Why spoil the symmetry of it by leaving out this "minimum"?
It is quite inapplicable.
I think the Parliamentary Secretary has really moved to leave out the wrong word. The Amendment makes it nonsense.
That is nothing new.
It is the minimum distance—not the actual distance. It is the charge in respect of the minimum distance. That is to say, a railway company may be entitled to make a charge for a less number of miles than they actually run. Instead of calculating it by miles, they may say that a sum of money may be charged.
With great respect to the hon. Gentleman, I think there is something wrong. I think it would be much better if the words, "or sums" were left out. This part of the Bill was taken in the Committee in which I was not a Member, and when I was discussing other parts of the Bill—with other Members—and it is rather difficult to follow. I still think this Amendment, if accepted, will make this Clause not very clear; in fact it will make it nonsense. In order to save the Ministry making the Clause such terrible nonsense, I do not think we should accept the suggested Amendment without some further explanation.
I am one of those completely mystified by the language it is proposed to use. As I understand the Amendment, it proposes to leave out the words. "or minimum sums." If that is done, the Clause will read:
"But such minimum distances shall not vary according to whether charges or station terminals are or are not made."
How can distances be made dependent upon charges? It is one of those puzzles which I find it quite impossible to resolve, and I gather other hon. Members of the House are in very much the same position. The two points, the point of distance and the point of charge, are brought together in a relation which make absolute nonsense.
I do not think there is so much difficulty as hon. Members see in this thing. The term "distance" can be translated into "charge." Take the case of the High Level Bridge which crosses the Tyne from Gateshead to Newcastle, and is under the North Eastern Railway. The company are entitled to charge a certain number of miles for that bridge. So here terminal charges can form part of the charge. It is a perfectly well-known fact.
My hon. and gallant Friend quite sees the point. Hon. Members should realise that minimum distances are artificial. You may take exactly the same distance between two towns and from station to station. The minimum distance may be 3 miles in one case, 4½ in another, and 6 in another, These are artificial distances applied to the case. We do not want to alter the distances, which have been fixed after great thought, and which will be fixed in the future after great thought, and having regard to the fact that terminals may be charged or not. We want the sum regardless of the distance and whether a terminal charge or not.
Amendment agreed to.
CLAUSE 48.—(Collection and delivery charges.)
(2) Any such company shall upon being required to do so and upon payment of the proper charges perform the services of collection and delivery at all places where the company holds itself out to collect and deliver:
Provided that the company shall not be required to make delivery to any person who is unwilling to agree to the delivery by the company at the charges included in the rate book of the whole of his traffic, or the whole of his perishable traffic, from the station at which those charges apply.
(3) Where any person does not so agree the company shall not be required to deliver any of his merchandise, but if such person fails to take delivery of any merchandise within a reasonable time the company may deliver such merchandise and make such reasonable charges there for as it thinks fit.
(4) Any dispute as to whether or not any charge for the services of collection and delivery is reasonable shall be determined by the Rates Tribunal.
I beg to move, in Subsection (2), to leave out the word "shall" ["such company shall upon being required"], and to insert instead thereof the words "may and."
Following this is another Amendment which proposes to leave out the words
This alteration means that under the Bill as it comes to us the railway company shall perform the services of cartage it is in the habit of performing. The alteration—and this is the point—means this: where near a station there is some traffic of a particular kind in works which may have been started, and it is the only traffic of that description which is dealt with at that station, the railway company can decline to cart the traffic. If my hon. Friend will accept it, I would like to propose an Amendment to the Amendment.
I have not yet put the second consequential Amendment.
Amendment agreed to.
I beg to move, in Subsection (2), to leave out the words
Question proposed, "That those words be there inserted in the Bill."
I beg to move, as an Amendment to the proposed Amendment, after the word "such" ["delivery in respect of such merchandise"], to insert the words, "class of."
That will cover the point, and will, I think, meet the case.
I am not quite sure whether I follow the effect of these words. I was on the Committee upstairs where the matter was discussed, and a general agreement was arrived at. No Amendment was moved at that stage, or if it was, it was withdrawn.
It is that very agreement which is being set aside by the change proposed in the Clause here. There are certain classes of merchandise. In each class of merchandise there are perhaps 100, 200, or 300 commodities. The point is that so long as the railway companies are in the habit of carting these commodities in that class they shall, if so required, cart any particular commodity in that class. The Clause as it stands in the Bill provides for that. The Minister is asking us to do away with it. It says:
"That the company shall perform the services of collection and delivery at all places where the company holds itself out to collect and deliver."
There is a limitation. A limitation has been put in the Clause now to be amended to which I have no objection provided the railway company is put in such a position that it must deal with cartage of all commodities in the class if it deals with any of them.
It is very difficult to try to please hon. Members when they do not like their own Amendments. If my hon. Friend looks at page 1,544 of the Order Paper upstairs he will find that the words which he has moved to insert were not contained in the Amendment which he then moved, and which I have now asked the House to adopt. I have put down the hon. Member's own words, and yet he is not satisfied with them.
Amendment to proposed Amendment negatived.
Proposed words there inserted in the Bill.
I beg to move, in Sub-section (2), to leave out the words
"Provided that the company shall not be required to make delivery to any person who is unwilling to agree to the delivery by the company at the charges included in the rate book of the whole of his traffic, or the whole of his perishable traffic, from the station at which those charges apply."
It seems to me monstrous that a company should have such powers as are contained in this Sub-section. Why should these monopolising concerns be able to tell a man who may own a horse and cart that if he does not hand over all his traffic to them he had better sell his horse, or keep it idle?
I beg to second this Amendment. I hear that the members of the Federation of British Industries are in favour of this proposal, and that puts the cap on it. Why should we permit this dragooning of traders? The whole danger of this Bill is that it forms very powerful monopolist groups of railways, and anyone who offends them is going to suffer for it. I was not on the Committee which discussed this part of the Bill, and I had not had an opportunity of consulting my own constituents with regard to this Sub-section. I do not, however, think that the traders of Hull will approve of this part of the Bill when they hear of it, and that will probably be when for the first time they are being refused cartage or services because they have not agreed that the whole of their work shall be done by this particular group. The country is taking very little interest in this Bill, but they will soon wake up to the fact that they have been "had." Under these words a railway group can insist upon a trader giving them the whole of his cartage business at charges fixed by some star chamber in London. He will have very little chance of redress or appeal, and unless he agrees to give the whole of his business in some particular line he is not to be considered at all. Englishmen will not stand that kind of treatment, and I hope this House will set its face against any such foully corrupt and improper suggestions.
This is a real Scotch Amendment. What it means is this. A certain person may own a horse and cart, and if he can move with advantage certain kinds of light traffic he is to be allowed to do so, but if it happens to be heavy traffic which he cannot move, and which can only be moved at a loss, then he is to be allowed to refuse to cart it. That is a most one-sided proposal. I can quite understand the hon. Member for Springburn (Mr. Macquisten) making this proposal, because that is something which appeals to a Scottish mind. Under this Amendment these people are to have every possible advantage, and I hope such a one-sided proposal will not be accepted.
I have had some communications from my constituents on this proposal, and I promised them I would bring it to the attention of the proper authorities. Contrary to the views expressed in the letters I have received, I think this Clause is a proper one, on the grounds which have been stated by my right hon. Friend the Member for the City (Sir F. Banbury). The railway companies are bound to maintain expensive transport arrangements, and it would not be fair to allow any person to choose exactly the kind of goods he wished to carry.
I think this Amendment is a wrong one, if we wish to effect economy in these matters. The cartage of goods to and from the station of the railway company is a voluntary service, I and they can do it or not, just as they like. As the law stands, if they do cart the goods they have to cart them for everybody. Trader A may say, "I propose to have all my traffic carted by the railway." Trader B says, "On so many days a week I send my carts out into the country, and on those days I will call upon the railway company to cart my traffic, but on the other three or four days I will cart it myself." To do this the railway company would have to keep a duplicate set of arrangements. They would have to keep surplus horses to be utilised on those days when it does not suit these men to cart.
I wish to point out that the charges for cartage are a separate charge altogether, and they are to be such as will cover the cost of the service. It is not going to be a service performed at a loss to enable a railway to filch traffic from its competitors. The charges will be fixed for each place having regard to the cost of performing that service. If we are going to make the railway companies take the whole of the abnormal fluctuation of traffic and the whole of the odd work, and allow the traders to take the heavy stuff that is easy to load and leave the goods which are bad to load, in that way you will force up the general cost, and the trader will be penalised for the benefit of those who do not use the service regularly.
We debated this matter very fully upstairs, and it was argued that it would hardly be fair to the traders who had a certain amount of perishable traffic to deal with. After a full Debate in Grand Committee we inserted the extra provision that a trader could give to the railway company the whole of his perishable traffic. If this proviso is left out I am sure that it would have the effect of raising the cost of cartage to the general community at every station simply in order to give a number of traders who are not playing the game the opportunity of getting the best and cheapest return at the expense of their fellow traders, who would have to pay the cost of the other traffic. For these reasons I hope this Amendment will not be pressed. It is not fair on the rest of the traders, and it is really of less importance to the railways than to the other traders. For these reasons I ask the House to reject this proposal.
The Minister, by dividing these charges, has done the traders an immense service, but this is the time for the matter to be dealt with consistently. As the Clause stands I have no objection to it, and I speak on behalf of a great number of traders. We have already altered this Clause in a very material manner. The right hon. Gentleman has just referred to the question of perishable goods. The Clause as it stands with this proviso means that a railway company can decline to cart in almost every case the goods of a particular manufacturer, or a particular kind of traffic of that manufacturer, and yet the manufacturer may be told that unless he gives the company all the cartage traffic that they want the company will not cart any of his goods.
I beg pardon, that is not so. He says, "you can take the whole of my traffic, or the whole of my perishable traffic," and the railway company cannot say, "Oh, no, we only want a bit of it."
Yes, but we have altered that, and the company can say it will not carry one part of a trader's traffic. That is the result of the Amendment which has been made.
No.
And that is where it varies from the Amendment proposed upstairs which the right hon. Gentleman preferred. I shall not support the Amendment brought forward by my hon. Friend, but I shall ask the right hon. Gentleman to consider one of the next Amendments which gives the Rates Tribunal the right to determine certain matters in dispute.
Amendment negatived.
I beg to move, in Subsection (2), to leave out the words "agree to" ["unwilling to agree to"], and to insert instead thereof the words
"enter into an agreement terminable by him at reasonable notice for."
I am moving this Amendment because it will save time in moving another Amendment which stands in my name subsequently. I understand the words are acceptable to the Government, and I believe they will be entirely satisfactory to the trading community. If they are accepted the Sub-section will read:
"Provided that the company shall not be required to make delivery to any person who is unwilling to enter into an agreement terminable by him at a reasonable notice for the delivery by the company at the charges included in the rate book of the whole of his traffic, or the whole of his perishable traffic from the station from which those charges apply."
I beg to second the Amendment.
It is, I think, at my suggestion that my hon. Friend is moving this, and I think the words will appeal to the Committee as being quite reasonable, because, as the proviso stands, there is no time limit. It does not give the trader any possibility of getting away from the terrible yoke of the railway company once he has agreed to hand his traffic over to it to cart. I can quite imagine the constituents of my hon. and gallant Friend the Member for Central Hull (Lieut.-Commander Kenworthy) desiring at some time to give notice in order that they may cart their own traffic. Therefore we thought it desirable to put in some means of terminating the agreement, and that is all that this Amendment does.
What is "reasonable notice." Surely the phrase is very vague.
I believe my hon. and learned Friend will find that that is dealt with in Sub-section (4), which the hon. Member for Eccles (Mr. Stevens) proposes to amend by enabling it to settle what is reasonable notice.
The Amendment is a slight improvement on the Clause as originally drawn. I tried to persuade the Minister upstairs that the Clause was unfair to the trader as it is, but this goes a long way towards meeting the case I then put, and I want to thank the Minister for the concession. The Clause is undoubtedly going to press very heavily on some traders even as it stands.
Amendment agreed to.
I beg to move in Subsection (4), after the word "reasonable," to insert the words "or in regard to any matter under this Section."
This Sub-section provides that any dispute as to whether a charge is reasonable shall be determined by the Rates Tribunal, and my Amendment provides that other matters in regard to any matter arising under this Section shall also be settled by the Rates Tribunal. The reason for this has already been given, and I simply move the Amendment.
I beg to second the Amendment.
I am not sure that I differ with the object of the Amendment, but I am not very much enamoured of its wording. Sub-section (4) says distinctly that any dispute as to whether or not a charge for the services of collection and delivery is reasonable is to be determined by the Rates Tribunal. But my hon. Friend the Member for Eccles (Mr. Stevens) wants to insert the words "or in regard to any matter under this Section." That seems to me to put the Rates Tribunal into a position which this House itself should occupy. If the Sub-section were confined to the interpretation of what is a reasonable charge or notice I should have no objection, but when it goes on to say that the Rates Tribunal are to determine in regard to any matter under this section, I do not quite see where I am. The word "determined" in this Bill means to decide without any power of appeal. I do not think the Amendment should be passed without further explanation, but if my hon. Friend is prepared to confine its operation to the interpretation of the word "reasonable," and I believe that is what he means, then I am willing to support him.
If the Amendment be accepted the Sub-section will read:
"Any dispute as to whether or not any charge for the services of collection and delivery is reasonable or in regard to any matter under this Section shall be determined by the Rates Tribunal."
Do let us try to put the Bill into more or less good English, I would suggest that the Amendment should read that any dispute as to whether or not any charge for the services of collection and delivery, or any matter under this Section is reasonable shall be determined by the Rates Tribunal. If we allow the Sub-section to be amended as my hon. Friend suggests the Rates Tribunal might say that the company's horses are not being properly fed, or that there are not enough of them to pull the loads, or that the breaking down of wagons is the fault of the railway company. Anything, in fact, may be alleged. It is not even limited by the marginal note which reads: "Collection and delivery charges." I would ask if it is not out of order to go in any way beyond the marginal note? The Sub-section says the tribunal shall adjudicate in any dispute in regard to charges. Is it not outside the scope of the Sub-section to say that they shall adjudicate in other matters?
I am quite willing to meet my hon. and gallant Friend the Member for Durham (Major Hills). The other matters referred to in my Amendment are intended to be matters dealt with in the Section.
May I get an answer to my point of Order, that you must not introduce into this Clause anything which goes beyond collection and delivery charges. I submit it is quite out of order to bring in other matters.
I do not think that a Clause is necessarily governed by the note at the side. The Amendment says, "or in regard to any matter under this Section." I think that is within the rules of order.
6.0 P.M.
I still think if the Amendment be adopted there will be no sense in the Sub-section, and I venture to suggest to the Government that it should not be accepted. It alters the whole Clause. It imposes new powers on the Rates Tribunal—powers which were never contemplated either by the Government or by the Clause. It means that any difference that may arise between any person or company under Sub-section (1), (2), or (3) may be referred for settlement to the Rates Tribunal. It widens the whole Clause, and would, I think, make it unworkable. It it a very material alteration in the Clause, and I hope that the Government will not accept the Amendment.
I also hope sincerely that the Government will resist this Amendment. The more one looks at it the more dangerous it appears. It is by no means a mere question of grammar. On the contrary, the Amendment proposes to introduce into this Sub-section words which would have the effect of enormously widening the scope of the whole Clause. We are asked to say that any dispute as to whether or not any charge for the services of collection and delivery is reasonable, or—according to the Amendment—in regard to any matter under this Section, shall be determined by the Rates Tribunal. If this Amendment be accepted it will enormously widen the jurisdiction of the Rates Tribunal, and will really compel us to reconsider the whole of the Clause.
I agree with a great deal of what has been said on the other side of the House. There may be grounds on which the hon. Member for Eccles could make out a case on behalf of the traders, but I feel certain that the words he suggests would not meet the case at all. Let me give one example of a very trivial thing which, if these words were accepted, might engage the attention of the tribunal for a very long time. It is provided that the rate book shall be kept at the station. If these words were accepted, the question might arise whether the book is or is not kept at the station, and that might engage the attention of the tribunal for a long time. I am quite convinced that the House does not want to put into the Bill things of that kind. The Bill is complicated enough at present, and, while I have a great deal of sympathy with the intention of the hon. Member for Eccles, I feel certain that the words which he proposes would not be acceptable at all.
I too have a great deal of sympathy with my hon. Friend's point of view, but it does seem to me that, if these words were put in, you would get actually a condition like this: Subsection (3) provides:
"Where any person does not so agree the company shall not be required to deliver any of his merchandise, but if such person fails to take delivery of any merchandise within a reasonable time the company may deliver such merchandise and make such reasonable charges therefor as it thinks fit."
There is a dispute about that. It is Mr. John Smith's basket of cabbages, let us say, and that has got to go to the Rates Tribunal. I suggest to my hon. Friend that if between now and the proceedings in another place he and I and my hon. and gallant Friend (Major Hills) meet, we may suggest something which can be inserted there to meet this point.
I accept that, and ask leave to withdraw the Amendment.
Amendment, by leave, withdrawn.
CLAUSE 51.—(Charges for competitive traffic.)
Where any two places are connected by railways belonging to or operated by two or more railway companies (being amalgamated companies or railway companies to which a schedule of standard charges has been applied) and the distance by any route is longer than the distance by the shortest route by not more than thirty per cent, or such other figure as the tribunal may fix, the railway company owning or operating the longer route may, notwithstanding anything in this Part of this Act, make for the conveyance of merchandise between those two places charges less than the standard rates, provided that the rates charged (not being exceptional rates) are not less than the standard rates for the conveyance of the merchandise by the cheapest route between those places.
I beg to move, to leave out the word "railways" ["Where any two places are connected by railways"], and to insert instead thereof the word "routes."
This is really the forerunner to a long Amendment which stands in my name on the Paper. It was debated in Committee, and I think my hon. Friend the Member for South Down (Mr. MacVeagh) will recognise it as what he called a blot on my escutcheon. It was a question of the conditions under which the railway companies should be free to carry goods or passengers by longer routes, and up to what percentage it was reasonable that they should use those alternative routes. I may explain that this is not entirely a matter for the railway companies. It is a matter for the users of the railways, who, under this Bill, have to find the standard revenue in so far as charges can yield it. Let us suppose that the shortest distance between two towns is 100 miles, that the standard charge is fixed for that 100 miles, and that a competing railway obtains the carriage of a consignment of traffic and has a longer route—perhaps 175 miles. In the end that additional tractive effort—the cost of hauling that traffic the additional 75 miles—is paid for by the users of the railway as a whole. That, I think, is indisputable. Whatever may be the extra cost of hauling over the longer distance, that extra cost is paid by the community as a whole, and therefore the community has a direct interest in seeing that the matter is dealt with reasonably. Competing railways desirous of getting additional traffic, and knowing that at any rate it will cover their out-of-pocket expenses, will throw the overhead charges on to other items, and will canvass for that traffic and carry it by a longer route. The extra cost of that extra mileage undoubtedly, in my judgment—and I think there can be no dispute about it—must fall upon the community, and therefore the community has a direct interest in the matter.
In Committee the Government was pressed to agree to, I think, unrestricted rights on the part of the railways to haul their traffic by longer routes. After some discussion, both in the Committee and outside, we arrived at this, that 30 per cent., which was our proposal, was possibly too short, and that a longer distance might reasonably be allowed. Following an undertaking that I gave in Committee, I have gone into that, and I do find that it would cause certain routes which traders are accustomed to use, and to which they have looked as a reasonable alternative, to be closed if we were to tie the railways down too strictly. It is with the object of meeting that point of view that the Amendment has been drafted. It is rather long, but, put briefly, it provides that the existing rates will be dealt with in the following way. Within a prescribed time the companies will submit schedules of routes, where the distance is 30 per cent, or more in excess of the distance by the shortest route, and those schedules will be referred to the Bates Tribunal. The Rates Tribunal will settle the details of routes to be regarded as alternative routes at equal rates. We do not interfere with them. The whole thing is reviewed, and it is seen whether, above 30 per cent., there is really a waste which is unreasonable. The Bates Tribunal, in considering the matter, will have regard to the obligation placed upon them to fix rates on a level which will give the standard revenue.
That in no way interferes with the freedom given to the railways to quote exceptional rates below the standard rates by any of these routes which are so scheduled and finally authorised. As regards new proposals, which will not be many in number—I think they cannot be many—the companies report the routes where the distance is beyond 30 per cent, within 14 days. The Minister may refer the matter to the tribunal if it is above 30 per cent., and the tribunal may take action in the matter, but they need not. If the distance exceeds 50 per cent., the route must have the consent of the Rates Tribunal before equal rates can be applied. That gives them, subject to review by the tribunal, which is charged with finding them the net revenue, freedom up to 50 per cent.; but it does retain in the hands and within the purview of the tribunal the consideration of all routes which are more than 30 per cent, longer than the shortest route. It does not in any way rule out routes which are necessary for the development of business and the convenience of the public; but it keeps them within the purview of the tribunal, and anything above 50 per cent, has to have the sanction of the tribunal. From what I have been able to ascertain, I think that this proposal will reasonably meet the views of the trading community and also of the railways.
My right hon. Friend has reminded me that I told him upstairs, during a somewhat acrimonious discussion, that his management of Clause 47 was a blot upon his escutcheon.
The only blot!
The one blot upon his escutcheon. He has made some effort to wipe out that blot, and I am very glad to see it, because there is always much joy over any sinner that does penance. But I am afraid that the process of conversion is not yet complete; it has only gone a certain length in the direction of wiping out that stain. I do not think it was ever agreed that my right hon. Friend was to introduce his definition of circuitous routes, nor was he to provide that there should be a report in all cases above 30 per cent., and a report for assent in all cases above 50 per cent. The Minister proposes, as a matter of fact, to make the companies report for assent in all cases over 30 per cent., and await the assent of the tribunal in all such cases. Those cases were certainly not any subject of agreement in any conference which took pace. When we come to the next Amendment, which stands in the name of the Minister, I shall move to insert the words "as the standard rate," so as to make the Amendment read as follows:
"The standard rate for the carriage of merchandise by the first-mentioned route may, subject to the provisions of this Section as to circuitous routes, be charged as the standard rate for the carriage of merchandise by such other route."
It is not easy for a layman to get hold of all the complications involved in a rates controversy, but, as I understand the matter, there are three points which are quite clear. The standard rates will be fixed by the tribunal; the Bill will allow the cutting of rates 40 per cent, below the standard—that is for exceptional rates; and in the case of competitive routes the Bill says that there shall be charged by the longer route the standard rate of the shorter route. These points are quite clear, but when you come to exceptional rates—
I think the hon. Member is now discussing the long Amendment which next follows. If there be no objection on the part of the House to the insertion of the word "routes" instead of "railways," perhaps we may dispose of that, and then I will call upon the hon. Member to move his Amendment.
I thought, from the way in which my right hon. Friend dealt with the matter, that he wanted to take the general discussion now, and then pass on to the next Amendment, avoiding a double discussion.
That will be quite right.
The difficulty to which I desire to call the attention of my right hon. Friend will arise on the exceptional rates. By the shorter routes it will be possible to quote 40 per cent, below the standard rate, but by the longer route the rate might be over 40 per cent, below the standard rate and we ought to provide for that in so many words. I understand that my right hon. Friend agrees with that, and therefore I will not trouble the House further on the matter.
Amendment agreed to.
I beg to move to leave out the words
Question proposed, "That the proposed words be there inserted in the Bill."
Amendment made to the proposed Amendment: After the word "charge" ["be charged for the carriage of merchandise"], insert the words "as the standard rate."—[ Mr. MacVeagh. ]
Question proposed, "That the proposed words, as amended, be there inserted in the Bill."
Before the House lets the Amendment go through, I hope it will bear in mind the extraordinary fallacy on which it is based—the fallacy that the cost of conveying goods by railway is greater in proportion to the length of the route. It is quite possible to have a route of 300 miles on which the cost is much less than on a route of 100 miles. I am afraid the real trouble is that obsession which is common to many railwaymen—what I may call the ton mile obsession. It is a very similar obsession to that of the hon. and gallant Gentleman (Colonel Wedgwood) in regard to land taxes, and once a man has such an idea he immediately builds up an Amendment like this, based on a complete misconception of the actual facts. Presupposing for a moment that the cost of carrying a ton of goods a certain distance varies proportionately with the distance, the Clause has some effect, and is of some use, but presupposing, as we know to be the fact, that the cost does not necessarily vary, and may be very much less on a longer route, it seems to me the Amendment and the whole Clause fall to the ground.
This Amendment does really not quite meet the case which has been put before the Minister, though it is an improvement on the Bill as it stood. Perhaps the House does not quite understand what the Amendment really does. It proposes certain alternative routes, not circuitous routes. That is a new word, unknown, I think, to any legal document hitherto, and I do not know quite why it is put in except to create prejudice. We debated alternative routes upstairs, and that is really the right word to use. "Circuitous" is a new word dragged in to create a certain atmosphere. It is well known that there are a number of alternative routes used by railway companies which are valuable to traders and also to the railway companies themselves. The direct route often is not available, it is choked with other traffic, but the alternative route is free and is also used. These alternative routes are to be preserved until the day of amalgamation. No one is to interfere with them. When the day of amalgamation arrives, or within six months after, the railway companies have to make a list of these alternative routes which are within 30 per cent, of the shortest distance between two given points, and submit them for the consideration of the Minister, and the Minister will then decide which of these routes is to be adjudicated upon by the Rates Tribunal. But the Clause does not actually say that. The Clause says:
Then we come to the latter part of the Clause which provides for the setting up of new alternative routes not now in existence. A company may set up a new alternative route without coming to the Minister if it does not exceed the shortest distance between the places by more than 50 per cent., and they may use that alternative route. They must give notice within 14 days and the matter then, at the discretion of the Minister, may be referred to the tribunals. But if the new route exceeds the shortest route by more than 50 per cent, the railway companies may not use it until it has been considered and adjudicated upon by the Rates Tribunal. That is the Clause as it stands. The hon. Member (Mr. Hopkinson) is perfectly right. Anyone who knows anything about the working of the railways knows that the charge for haulage is the least considerable charge in the working of a railway. Wear and tear of locomotives and wagons, the wages of the men who are working the trains, the men on the engine, and the use of fuel, charges for horses, and the nature of the road along which the locomotive passes, are the matters which make for expense. The other charges are another matter altogether. Maintenance of the roads, maintenance of the signal men and the boxes, maintenance of staff of all descriptions are the heavy overhead charges of the railway companies, and it is a matter, very often of great value to a railway company, to carry traffic by a longer route in order that they may obtain a contribution towards these heavy outstanding overhead charges. The actual cost of haulage, unless the road is a very heavy one or the route is inordinately long, is a very small consideration.
There is one matter that I cannot understand in this proposed new Clause. Why should 30 per cent, be the point in dealing with the old system? Why should the railway companies be allowed 50 per cent, in setting up new routes? It is an anomaly, and the Minister has not explained why that should be. Here is another instance of the Minister and the Rates Tribunal interfering with the management of a railway company. The Clause is a considerable improvement upon the Clause as originally drawn, but it does not go so far as the Minister at one time undertook to go, that he would insert 50 per cent, in the Amendment before the Committee. He withdrew it, and insisted on 30 per cent, without any explanation and without any reason for the change, and I think we ought to know why he insists on 30 per cent, for the old alternative route and 50 per cent, for the new one. It does not seem logical or reasonable under the circumstances.
Question, "That the proposed words, as amended, be there inserted in the Bill," put, and agreed to.
CLAUSE 53.—(Publication and schedules of standard charges, etc.)
(5) Where a railway company carries merchandise partly by land and partly by sea all the books, tables and documents touching the rates of charge of the railway company, which are kept by the railway company at any port in Great Britain used by the vessels which carry the sea traffic of the railway company, shall, besides containing all the rates charged for the sea traffic, state what proportion of any rate is appropriated to the conveyance by sea, distinguishing such proportion from that which is appropriated to the conveyance by land on either side of the sea.
I beg to move, at the end of Sub-section (5), to add the words
"and showing what amounts in such proportion is allocated to dock and port charges or dues."
This Clause deals with the publication of rates and charges, and the right hon. Gentleman has done a great deal more perhaps than in any other part of the Bill to satisfy the wishes of the traders from the point of view of the difficulties they have had to deal with in the past. But it is not quite complete, and the Clause provides that in the case of traffic which is passing partly by railway and partly overseas, such as the traffic between England and Ireland and other cross-channel traffic, the rate book shall not only distinguish such proportion from that which is appropriated in the conveyance on land on this side of the sea, but by the steamer, and I ask that the rate book should show in addition what amount in such proportion is allocated to dock and port charges or dues. This provides that the charges for harbour and dock dues, and so on, should be shown on the rate book whether the traffic is carried by the railway companies through a port of their own or through other ports such as Liverpool or London.
I beg to second the Amendment.
I am grateful to my hon. Friend for his acknowledgment of what the Minister has done in regard to the disintegration of rates, and I respectfully suggest that he is carrying the matter a little too far by the present Amendment. The Sub-section under discussion provides that when merchandise is carried partly by land and partly by sea the books shall disclose the charges in respect of the sea traffic as distinct from the charges in repect of the land traffic on either side of the sea transit. My hon. Friend asks that there shall be further disintegration, and that the books shall show items in respect of dock and port charges or dues. That is quite unnecessary. The trader will be able to see from the books exactly what he has been charged for land transport and exactly what he has been charged for sea transport, including those things which are essential to sea transport, namely, dock and port charges. He will be able, therefore, to see whether the railway companies are making too large a charge in respect of sea transport. I suggest that there is no real object in the Amendment. The Govern- ment is advised that it would entail a very substantial amount of labour, which is unnecessary and would do no good.
I would like to point out that the railway companies to-day have to show the charge for steamers, and they show a ridiculously small charge, not at all commensurate with even the port charges which they would have to pay in the ordinary way for the use of the port. There is no definition at all as to whether the dock charge is part of the sea freight or part of the land charge. I ask my right hon. Friend if he can see his way to accept the Amendment.
Amendment negatived.
CLAUSE 55.—(Amendments of certain Acts.)
As from the appointed day the Acts mentioned in the first column of the Sixth Schedule to this Act shall in their application to railway companies have effect subject to the amendments specified in the second column of that Schedule.
I beg to move, at the end of the Clause, to add a new Sub-section—
"(2) Where any existing special Act relating to any railway company does not incorporate a Section of any of the Railways Clauses Acts which is amended or repealed by the said Schedule but contains provisions corresponding to such Section, the like Amendment or Repeal shall be made of such corresponding provision as is made by the said Schedule of the Section of the Railways Clauses Act."
The reason for this Amendment is that in Schedule 6, Section 31 of the Railway Clauses Act, 1863, is to be repealed. That is referred to in Clause 55. Certain companies have steamship Acts which were passed in or prior to 1863. They refer to the 1854 Act. My Amendment proposes to include in the repealing those companies whose powers were under the 1854 Act.
I beg to second the Amendment.
This Amendment gives effect to what has already been done in the Bill, and the Government will accept it.
Amendment agreed to.
CLAUSE 57.—(Adjustment of powers of charging to revenue.)
(1) The charges to be fixed in the first instance for each amalgamated company shall be such as will, together with the other sources of revenue, in the opinion of the Bates Tribunal, so far as practicable yield, with efficient and economical working and management, an annual net revenue (hereinafter referred to as the standard revenue) equivalent to the aggregate net revenues in the year nineteen hundred and thirteen of the constituent companies and the subsidiary companies absorbed by the amalgamated company, together with—
( a ) a sum equal to five per cent, on capital expenditure forming the basis on which interest was allowed at the end of the period during which constituent companies and subsidiary companies were in possession of the Government; and
( b ) such allowance as may be necessary to remunerate adequately any additional capital which may have been raised or provided in respect of expenditure on capital account incurred since the fourteenth day of August, one thousand nine hundred and twenty-one; and
( c ) such allowance as appears to the Rates Tribunal to be reasonable in respect of capital expenditure on works (not being less than twenty-five thousand pounds in the case of any work, and not being capital expenditure included in paragraph ( a ) or ( b )), which had not at the beginning of the year nineteen hundred and thirteen become fully remunerative.
(2) Subject as aforesaid, the tribunal when fixing charges in pursuance of the provisions of this Section shall fix such charges as in their opinion are best calculated to ensure the maximum development and extension in the public interest of the carriage by railway of merchandise and of passengers and their luggage, and shall accordingly ascertain as far as may be practicable the effect which the existing charges, or any of them, have had upon the merchandise or passenger traffic to which they are applicable, and in particular whether the application of such charges has tended or, if continued, would be likely to tend towards causing the increase or diminution of the said traffic.
(3) If on any such review as is mentioned in the next following Section it appears to the Rates Tribunal that the allowance made under paragraph ( c ) of Sub-section (1) of this Section was too high or too low the tribunal may revise the allowance and make such adjustment in the amount of the standard revenue as may be necessary.
(4) When fixing the charges necessary to produce the standard revenue, the tribunal shall take into consideration the charges in respect of any business carried on by the company ancillary or subsidiary to their railways, the charges for which are not subject to the jurisdiction of the tribunal, and if in the opinion of the tribunal the company are not making, or have not taken reasonable steps to enable them to make, adequate charges 'in respect of any such business, the tribunal shall, in fixing the charges under this Part of this Act, take into account the revenue which would be produced by any such business if adequate charges were in operation.
I beg to move, in Sub-section (1), to leave out the words will be far lower. It is our duty to show that this solution would be just to the shareholders of the railway companies. What is there that is unjust in taking the market value of these shares and adding 5 per cent, on that market value; a guaranteed 5 per cent, and no longer a fluctuating 5 per cent.
Ever since 1913 the shares of the different railway companies have been bought and sold in the market. Perhaps one-fourth, it may be one-third, of the shareholders have changed since 1913. New holders have come along. Why should we now enhance enormously the value of these shareholders' property by taking the 1913 level and guaranteeing that? We meet the necessities of justice by taking the Stock Exchange value for last month and basing the charges that the railway proprietors are justified in levying upon the traders and the community upon that figure, instead of going back to the pre-War figures and adding thereto 5 per cent, on the capital since raised. I know it will be said by the right hon. Baronet (Sir F. Banbury) that Stock Exchange values are not a fair valuation of the property of any companies. I have noticed that people who hold shares which they bought at a big price and which now stand at a low price on the Stock Exchange think that the Stock Exchange valuation is wrong, but if they have bought at a low price and the price has gone up, they think the Stock Exchange valuation is very just and fair. What the shares fetch in the open market may not be a perfect way to decide the value of a concern, but it is the best available way to decide the value of a concern, and any business firm, any holding company, any trust company that does not when drawing up its balance sheet take account of the Stock Exchange value of its investments is likely to meet with short shrift when it comes before the Official Receiver later on. Every business man who deals in stocks and shares knows that he has faut de mieux to take the Stock Exchange valuation as being the best valuation for his security. All we ask is that the shareholders of the railway companies on this occasion shall take the Stock Exchange valuation of their properties as being the most accurate valuation, and that we should guarantee a further 5 per cent, on that value, and thereby save the traders and the public vast sums of money which, under the Clause as it stands now, must inevitably be paid to the shareholders of railway companies.
I beg to second the Amendment. I would point out that the proposals in this Clause are such that, apparently, the only people, apart from the civil servants, who are not to suffer as a result of the War, and the vast destruction of wealth, are the railway companies, the shareholders, and directors. Furthermore, that the improvements in transport, the new methods in transport affecting the air and the road, are not to affect the earnings of the railway companies. The railway companies are going to batten at the expense of the general body of railway users, that is, the public and the traders, and, therefore, on the consumers as a whole. We propose in this Amendment to make some attempt to cut down the amount of money that the railway companies can under this Bill extort from the country. Our proposal is not unreasonable. We take practically the value of the railways as shown on the Stock Exchange, which is the price that the stocks will fetch, as a just and true price. We propose to give 5 per cent, on that, then we leave in paragraphs ( b ) and ( c ) and Sub-sections (2), (3), and (4), which will mean that interest will be paid, as laid down in the Bill, on further capital expenditure, and owing to the fall in the cost of raw materials and the fall in wages, with the resultant economies, a certain percentage of those economies will go to the railways, and will be added to the dividends paid on the capital. I do not think that is unjust.
The present Bill is extremely unjust. It is too generous to the railway companies at the expense of the general body of the community. We have been told, almost ad nauseum, that the price of our goods must come down if we are to compete in the markets of the world. If we are to do that we must have cheap transport. I do not think we are going to have very efficient transport, because this Bill puts a premium on efficiency and not a premium on efficiency. That is its great weakness. In order to make transport as cheap as we can, within the four corners of this thoroughly bad Bill, we propose to cut down the amount of money which the railway companies can charge.
The hon. and gallant Gentleman who has just sat down has said that the railway companies are going to batten upon the Bill. I am not sure that I know the meaning of the word "batten," but I presume that the hon. Gentleman means that unless this Amendment is carried the railway companies are going to fatten on this Bill. The hon. Gentleman asks, "Why should the railway companies be in a different position from everyone else?" The fact is that they are in a worse position, even if this Bill is carried, than a great number of people, including Government officials, trade unionists, and Members of Parliament. The position is that in 1913 the railway companies earned a net revenue of 4¼ per cent. No one in this House can say that a dividend of 4¼ per cent, is something on which either to fatten or batten, but there has been no increase in the rate of interest since 1914. The cost of living has gone up, but the Government is giving the shareholders no return for that.
They escape the Corporation Profits Tax.
Under the Bill, they will have to be content with what they had before the cost of living went up, even if the Bill realise the expectations of its promoters, because all the Bill provides is the net revenue of 1913 of 4¼ per cent, plus a small increase in certain circumstances which probably never will arise. The shareholders really have cause to complain. Having done their best in difficult circumstances, having been content, not having struck for more on account of the cost of living, the principle seems to be that it does not matter whether you are right or wrong in your demand, but whether you have power to enforce it. The hon. and gallant Gentleman (Colonel Wedgwood), for whom I have a great respect and with whom I often agree, has got a crook in his mind. The word "value" immediately sends him off at a tangent. His common-sense disappears, if you use the word "value," whether it is land values or Stock Exchange values. I do not think he knows much about values, and I am certain that he knows nothing about Stock Exchange values. He proposes to take the Stock Exchange value on the 30th June and to allow the shareholders 5 per cent, upon that particular value. I have not worked out the sum, but, speaking roughly, I should think that probably it would mean a dividend of about 2¼ per cent, or something of that sort upon the whole of the capital of the railways. I do not suppose that the hon. Gentleman would say that the debenture holders or the preference stock holders should not receive their full interest. Therefore the result would be that there would be nothing at all for the ordinary shareholders.
The hon. and gallant Member who talked about battening (Lieut.-Commander Kenworthy) has been obliged to go out when I have shown that at any rate the ordinary shareholders would not batten. I do not know whether he has gone to telephone to his brokers to sell any railway shares that he may happen to have, but at any rate what I have described is what would happen if the Amendment were carried. The hon. and gallant Gentleman says that every trust company at the end of its financial year makes a valuation of its assets, and if it holds, as probably it would, a large number of Stock Exchange securities, it takes the value quoted on the Stock Exchange list as the value of those securities at that moment if they want to sell, not the value if they were going to buy, or the value at which they would agree to have those securities taken from them, but the value which they could get at that moment if they wanted to sell, which is a totally different thing. The hon. and gallant Gentleman (Colonel Wedgwood) is a great believer in Russia. I hope that I am not doing him an injustice, but I once heard him say that he believed in a Bolshevist regime. If that is so then very likely some time ago he bought some Russian stock. But suppose that he had invested at 50 as they were some time ago, would he now agree if somebody came along and said, "Your ideas as to the future of Russia are wrong. At any rate, the price of your security at present, according to the Stock Exchange list, is 10, and I am going to take your securities at 10"? I do not think that the hon. Gentleman would be inclined to part with them. He would say, "I do not take the Stock Exchange value, I do not want to sell. The Stock Exchange value will not always remain the same." Why should the hon. and gallant Gentleman take the date, June, 1921, more than any other date? I think he picks it out because, owing to the introduction of the Bill, the price of the stocks is very low and he thinks that he may be able to gain some advantage by picking out this date.
I took a good cum-dividend time, just before the Great Northern declared its dividend.
I do not see what that has got to do with it. Has or has not the hon. Gentleman selected a time of exceptionally low price, and has he shown any reason for supposing that the Stock Exchange value is the value at which people will be content to sell? Of course he has not. The Stock Exchange value, especially at the present time, is most illusory because, as I have already explained to the hon. and gallant Gentleman upstairs in Committee, if I want to buy anything at Stock Exchange prices at the present moment, what happens is this. I tried to buy a small amount of stock the other day. The price was so and so, but the holders did not want to sell. Therefore the Stock Exchange price is, and never was anything beyond, the price at which you could sell a certain security. The Stock Exchange value at the present moment, when the markets are very limited, is of no value beyond showing that if you want to sell just now, that is probably all you would get, and it does not follow that you would get that, because you would not get it if there did not happen to be a buyer. For instance, cattle at the present moment are extremely low owing to the drought. The hon. and gallant Gentleman might as well go to a large grazier who has, say, 300 head of cattle and has got a fair amount of grass as he has been lucky in grains, and a good amount of hay for winter, and say, "These cattle cost you £40 apiece in April. They would sell now in the market as low as £20, and I am going to buy them from you at £20." If the hon. and gallant Gentleman were a farmer he would say, "I am waiting for better times." I hope that I have shown that the argument as to Stock Exchange values is illusory.
I am afraid that what the farmer would say is what the hon. Gentleman would say—"the public will have to pay."
If you are going to take anybody's property, the real point is what is the property earning, what is the fair price to give on the earning facilities of that property. That is the only way in which compulsory acquisition purchase could ever be made fair and just. I hope that the House will reject the Amendment.
While I dislike entering into these guarantees, I find myself in a difficult position on this Amendment. The Government, as I understand, propose to secure to the railway companies, as far as it is practicable, the net revenues of 1913. My hon. and gallant Friend (Colonel Wedgwood) says, "Take the Stock Exchange values and guarantee 5 per cent."
There is no guarantee. It is a question of the rates.
I have always held, though hon. Members may disagree, that this Bill does contain a guarantee to the railway companies of the 1913 revenue. My hon. and gallant Friend says, "Guarantee them 5 per cent, on the Stock Exchange value." I object to both. This country wants quick, cheap, and efficient transport. The system of guarantees will kill all enterprise. I have to choose between my hon. and gallant Friend's plan and the Government plan. Take the Government plan. A distinguished man, Mr. W. T. Layton, writing in the "Times" the other day, said,
"A plan which makes rates rise or fall in order to secure a fixed value"—
this equally applies to my hon. Friend—
"would, if it could be put into effect, produce the strange result of raising railway rates in times of bad trade and lowering them again when trade recovers. In view of the development of road transport on the one hand and the acute foreign competition, which our big industries will have to face, on the other, such provisions are all obviously impracticable, and the plan would be dismissed as another of these stillborn schemes of the Government that economically failed."
This plan of the Government, and I say it deliberately, weighing my words, is, in my judgment, a corrupt bargain between the Minister of Transport and the railway companies. I dislike my hon. I and gallant Friend's plan too. I dislike these questions of guarantee. Why should the railway companies have any guarantee at all?
They have not got it.
7.0 P.M.
Let us read the Bill over again, and see what it says. My hon. Friend is rather touchy on this subject. I am not sure whether he is interested in railways. Is he a railway director at all? I am here to represent the public and not the railway directors.
"The charges to be fixed in the first instance for each amalgamated company shall be such as will … so far as practicable yield, … an annual net revenue … equivalent to the aggregate net revenues in the year 1913."
Is not that a guarantee? [HON. MEMBERS: "No!"] What is it? Why put it in? If you leave it out then I will support the Bill. I should go back to the pre-War plan and compel the railway companies to give good and sufficient reasons for an increase of rates. That is the only way you will get cheap transport. This is a plan whereby you will get dear transport. It is a proposal that will take away all incentive from the railway company to put forward their best efforts. Hon. Gentlemen opposite are very indignant now, but I tell them that if I wanted an electioneering cry I could not have anything better than this. I have given the figures here before, and I shall give them again on the Third Reading; I will not do so now. The Clause is maintaining and increasing the present high railway charges. Go down into the country and ask the farmers and the traders and the travelling public what they think of this. I would like the Minister of Transport to give us some asurance about these railway charges. They are far too high to-day. I do not see anything under this Clause and this system of guarantees to bring them down. I do not see anything even in my hon. and gallant Friend's Amendment, and that is why it puts persons like myself, who dislike guarantees, in such a quandary.
We will gladly have any other system, but this reduces the cost by one-half. That is the best we can do.
I think the railway shareholders have a right to be treated fairly. I do not believe you can do that by a system of guarantees by the State. The railway shareholders must be put into the position of other commercial concerns. If they manage their concerns well, let them reap their reward in the shape of increased dividends. If they manage them badly, as they may manage them badly here and yet secure their net 1913 revenue, let them suffer, like any other commercial concern. That is the only just thing to do.
My right hon. Friend says he would like the railways to manage their business like other commercial concerns. Does that mean freedom to charge whatever rates they like? Will he answer that question?
With pleasure. I thought I had answered it in reply to the hon. Gentleman opposite. I would make the railway companies revert to the pre-War practice of being compelled to justify an increase in railway rates.
That is not ordinary trade.
After all is said and done, the railways have grown up under that system, but this is a system whereby you absolutely stereotype these high prices. There is no way out of it.
My right hon. Friend says he wishes the railways to be put in a position to justify an increase of charges. Where is he going to get his basic line? Is he going to take his present standard of charge, and make the railways justify everything above that? Is he going to take the pre-War charge, and make them justify everything above that, or is he going to take the pre-War maximum, and make them justify everything above that? Let us know where he is going to start.
I should start at the pre-War charges. [An HON. MEMBER: "They would all be bankrupt in a fortnight."] If my right hon. Friend thinks that this country is so much more wealthy than it was before the War, he makes a great mistake. That is the kind of idea which has permeated all the legislation of the Government, namely, that we are very much richer now, and can spend very much more money. We cannot, and you are finding that out to-day, and the squeeze will come next year.
Will the right hon. Member face the fact? Does he really seriously mean that if it were in his hands he would put the railways back to the charges that they had before the War and expect them to carry on until they had gone through with the procedure which, under the old system, took them four years to get any increase of charges at all? Does he expect them to go on and give as good a service for four years under that old system, using that as a basic charge from which they must not depart until they have gone through that intricate procedure, and yet to pay the present-day costs?
Give the railway companies a fair and reasonable time to put their case before the Railway Commissioners, such as existed before the War. After all, the railways existed before my right hon. Friend came upon the scene.
How are they to pay the wages of their workmen?
Give them a reasonable time, but let the basis be the pre-War charges. If they can justify anything above pre-War charges then let them charge it, but do not have anything like this guarantee system, which is bad.
Wages are three times up.
Let the railway companies have a reasonable time to put their case before the Railway and Canal Commission. If they can justify their charges, well and good, let them charge extra rates. This system, which gives a guarantee of the 1913 net revenue, is a thoroughly bad one. I would give all the railway shareholders a chance to go before the railway and Canal Commission. If you like you could stereotype the rates for a year and then let them go before the Commission. I do not like this new Rates Tribunal. It seems to me that there is no check on it. I dislike both the proposal of the Government and of my hon. and gallant Friend. If I thought that by voting for the Amendment of my hon. and gallant Friend I should kill this proposal I would vote for it. I want to see this Clause deleted from the Bill, for I believe that in the long run not only would it injure the trade of the country, but it would ruin the shareholders.
I did not interrupt my right hon. Friend when he was asking for fairness all round, but I was surprised to hear him deliberately quote this Clause in the way he did to hon. Members who had not the Bill before them. He spoke of guaranteeing the net revenue of 1913 "so far as practicable yield" an annual revenue. The words he left out between those words are the guiding words of the Clause. It says in the Clause:
"Practicable yield, with efficient and economical working and management."
That is the test.
Can a tribunal judge that?
It is a travesty of the Clause to quote it without those words. The right hon. Gentleman said it was stereotyping inefficiency, but he deliberately quotes the Clause, yet omits the words which, so far as Parliament can lay down in any Clause, are given as a guidance to the tribunal which is to be set up. They provide that the tribunal is to take account of those most essential features. Subject to that, if a railway company does not show that it is managing its affairs as well as any other company, it will have no argument to go before the tribunal and to claim the 1913 net revenue. It must show it is managing in a businesslike and economical way.
If the right hon. Gentleman (Mr. Lambert), who has attacked the Bill so severely, had the courage to go the whole way along which I believe his convictions would lead him, I am not sure that I should not support him, for he began his speech by claiming commercial freedom for the railways. He said: "Let them find their own level, and if they manage their own business, well let them make a profit; if they manage it badly, let them make a loss." That is a very attractive plan, but it is not a plan that has ever obtained in this country or in any country, and I do not believe that it is a possible plan to enforce. When he talks about a standard revenue—I will not go into the dispute whether it is guaranteed or not, though there cannot be two opinions about that, and I think that when he has had time to study the Bill he will see that there is no guarantee—he does not realise that when you grant the power to earn this standard revenue you expressly exclude the com- panies from earning a fraction more. The right hon. Gentleman said: "Let them prosper if they do well, and the reverse if they do badly." In this Clause you expressly say: "You may earn your standard revenue if you can. If you earn more, then of that excess we shall take 4s. out of 5s." That is a very material fact and ought to be brought into consideration, for even if you did give a guarantee it would not be so very much to ask if at the same time it prevented the companies earning more than they got from their guaranteed revenue. Here you give less than the guarantee, and it surely is a very material thing to say: "You may earn if you can the same as you earned in 1913. If you earn any more we will come down on you and take 4s. out of every 5s."
Is that such a very generous bargain to the shareholders? Is that a corrupt bargain? I wish the right hon. Gentleman had been present at some shareholders' meetings in recent years. He would have found very different opinions prevailing, for the shareholders very severely blamed their directors for accepting such a small return on their shares during the War, when every other class of the community was gaining enormously increased returns. I need not refer to farmers or shipowners, or the numerous other classes, but it is a little unreasonable now, after the shareholders have received very small returns all this time, to represent them as making a claim that no other class has made and as demanding to be put in a guaranteed position. It is not so at all. A standard revenue is imposed in the interests of the State to prevent the railways earning too much money, and that is why I said that if I could follow the right hon. Gentleman, and if he would lead me where I think his mind is leading him and would fix a reasonable standard, and would then say to the companies, "All you can earn you will get," I believe the railways would do much better. All this talk of the guaranteed return is really on a false basis. First of all, you do not guarantee anything to anyone. All you say to the railways is, "You shall have the very minimum which we think you must get, and you shall not get any more." It is going rather far to talk of a corrupt bargain, as though the railway shareholders had held up the Government and by some force or some fraud had compelled the Government to give favourable terms in this Bill. I agree with a good deal said by the right hon. Member for South Molton, but I think he will agree with me that he went too far.
No.
I think so. When you see the very small return given, and the very strict prevention against earning any more than that, you cannot call it a corrupt bargain. The Amendment means that instead of giving 4¼ per cent, on railway capital you will give something between 2 per cent, and 2¼ per cent.
We leave the additional earnings made under the further Sub-section of this Clause, but we put the railway companies on their mettle to earn that. The guarantee will be cut down, certainly.
I do not care which way it goes. I have not studied the Amendment paper with sufficient care, but I put it to hon. Members opposite that they cannot go to private investors and ask those investors to build railways and then to say to them, "We will cut down your dividends by half."
It is 5 per cent on the present valuation. None of the shares is at par.
There are all sorts of future values which cannot be included in Stock Exchange prices. We discussed this question yesterday, and I was badly beaten. The real point is that there are future prospects in railway stock which are not represented in market prices. As long as you have a system of private capital, you must accept its implications. You cannot in the same breath ask people to find money for building your railways and then say to those people, " You shall not earn more than 2¼ per cent." The right hon. Member for Derby (Mr. Thomas) introduced a very interesting Bill this year. In a great many ways it was much more favourable to the shareholders than is this Bill.
You did not back it.
I was not asked to do so. It had a great many very attractive points about it. Between two stools the Mover and the Seconder fall. Either you have to buy up the railways and do what you like with them, or, as long as you allow them to remain in private hands and you regulate dividends, you must allow a fair return. Without a fair return private capital cannot exist. The right hon. Gentleman (Mr. Lambert) rightly called this a wrecking Amendment. If he wants to wreck the Bill, he should vote for the Amendment.
I am sure that hon. Members will expect to hear some kind of reply on our part, in view of the arguments which have been used. When the Bill was in Committee, in connection with the proposed transfer of the railway companies, we moved an Amendment in somewhat similar terms. It was met in a very hostile way by the Government and was eventually defeated. On the Amendment now under discussion there must, of course, be division of opinion even on this side of the House. It is fair to recognise that we must regard this Bill as a whole, as a complete structure. We make certain demands on the railway companies on the one side. We regulate the way in which the undertakings are run. Later in the Bill we establish machinery for safeguarding the conditions of service and rates of pay. It is only fair, therefore, to point out that as long as the existing system lasts—a system in which we do not believe—the companies should be afforded a reasonable return on the capital sunk in these concerns. That is the view taken by some of us in this part of the House.
We are compelled to ask whether the proposals of the Bill are strictly fair to the companies. The hon. and gallant Member for Durham (Major Hills) will agree that I had never used the word "guarantee" in this connection. I have always used the phrase that this was a form of guarantee, which in practice would probably be a very different thing. Let us see exactly what is proposed. It is provided that, as far as practicable, with efficient and economical management, the Bates Tribunal shall fix the charges so as to give the net revenue of 1913. Later in the Bill there is provision for review, and all the rest of it. If we take the average return of 1913, it is correct to say that it does not represent a very large return on capital. But later on in the Bill you have provision for a certain percentage on capital expenditure that was not fully remunerative before 1913, on capital expenditure during the period of Government possession, and also on capital expenditure after control is ended. I do not know how all that is going to work out or what kind of addition that will make to the form of guarantee or the promise that is afforded in the first part of this Clause. These are frank difficulties in our minds on this side of the House, when we consider the demand that as long as the present ownership of railways lasts, there must be kept in view the fact that the railway companies are entitled to a certain revenue from year to year.
But there are two great vices in this Clause. Whatever may be our view regarding the future of the railway undertakings, these vices will be apparent and real in the near future. In the first place, this Clause fastens upon the net revenue of the year 1913. I cannot trace the origin of that proposal, but I would like to recall the fact that when under the Act of 1871 the railways were taken under control for the period of the War, there was discussion as to the kind of compensation that should be afforded to the companies in respect of the damage or in respect of the payment for all that was due to Government control. By some arrangement which will probably never be fully explained, the net receipts of the year 1913 were taken as the basis on which control was to proceed, with, of course, certain additions and alterations which were introduced from time to time. Those of us who had the misfortune to sit on the Colwyn Committee were never easy in our minds regarding that arrangement. It seemed to us to be very largely a chance proposal, and yet it is very much the same kind of thing which we find imported into this Clause of the Bill—a form of promise of the net revenue of the year 1913, a peak year in British railways, with all the other objections on the question of average and what not which attach to it. Upon that ground we are compelled to accept this Clause with very great hesitation.
In practice I believe that the Clause will never work, and for a very sufficient reason that it runs counter to ordinary economic practice in this country. That is a fair objection to offer. Let us suppose that there was a period of slump or depression in trade. Here is a Bates Tribunal which is confronted with the duty, as far as practicable under efficient and economical management, of getting the net revenue of 1913. I take the view that in all likelihood the trade of this country or the traffic would not stand it. Then, in practice, we come back exactly to what has been argued so frequently in the newspapers, namely, that whatever you do in this Bill, economic conditions will determine what the railway companies are to get. If that be the state of affairs, my frank view is that this Clause is a dangerous Clause in many respects. It is fair from other points of view, but in practice I hold that it will never work.
The hon. Member who has just spoken has thrown an air of respectability over the Amendment, and has attempted to give the weight of his great authority to a proposal which his argument hardly supports. The Amendment is intended to convince the House that this Clause of the Bill is giving the railway companies too much. The hon. Member supports the Amendment by arguing that the form of guarantee will not work at the very time when it will be most essential to make the guarantee effective. That is an argument with which many of us on this side of the House are inclined to agree. It is very largely for that reason that some of us quarrel with the right hon. Member for South Molton (Mr. Lambert) when he insists that this is a guarantee. It is the most curious form of guarantee that a trader ever heard of, if it is a guarantee. If it is a guarantee, it would be possible for any trader who wished to guarantee profits in his business simply to sit down, to take his book, and to write out a series of rates and prices which he would charge, and then, according to the right hon. Member, he would have ensured a profit for the year in question.
Whereas the customers of the butcher and the baker are not compelled to buy from him, we are compelled to travel and to send our goods by the railways, because they are the only means open to us.
It is almost ludicrous to suggest that the railways are the only means by which a person can travel or despatch goods. It will be obvious to anyone who is acquainted with economic questions that this is not a guarantee but a mere device which is to assist the tribunal to fix certain rates in the hope that under advantageous conditions railway companies will secure a fair return for their capital. Then the hon. Member for Central Edinburgh (Mr. W. Graham) complains that the Clause purports to give the results of a peak year as the basis for fixing the charges. The year 1913 was not selected, because it was a peak year. It happens to be a year in which there was a very moderate return upon capital. Everybody recognises that 4J per cent, is not an excessive rate of return, and all the Clause says is that if the tribunal can fix rates, which, when trade is in a happy state, will produce the return of 1913 the shareholders of the railway companies must be content with that. The question of whether it was a peak year or not seems to be neither here nor there in discussing whether railway shareholders are getting what they are entitled to under this Clause. The hon. and gallant Gentleman who moved the Amendment and his colleague used such violent language about their Amendment that one suspects the strength of the case which they advocate. I heard the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) a little while ago describe as a corrupt bargain a certain proposal in this Bill, but he had not the courage or, may I say, the strength of character to go into the Lobby and fight to the death against such corruption. Similarly, the hon. and gallant Member for Newcastle-under-Lyme (Colonel Wedgwood) used words about everybody who has an interest in railway companies, which suggests that he alone is pure and righteous.
What are the words complained of as being used by me? I merely pointed out that hon. Members spoke for the railway companies as well as for their constituents and that I, too, had a vested interest like the rest of them.
Then the hon. and gallant Member is different from myself, when he has a vested interest in railways. But let that pass. He charged everybody who supports the proposal in the Bill, or practically everybody, with supporting that proposal because it gives them more money. That was the whole point and substance of his speech.
Because it gives their clients more money.
Or because it gives their clients more money. His argument is that the country's interest is what he has at heart, while other hon. Members have only the interests of themselves and their clients at heart. It is a familiar line of argument for the hon. and gallant Member to adopt. The measure of the strength of his political opinions is always the corruption which he attributes to other people. The Motion has been moved in such violent language, as I have already said, as to make one suspect the strength of the arguments for which the violent language has been substituted. When we find the Amendment supported by the right hon. Gentleman the Member for South Molton (Mr. Lambert)—if he did not support it he attacked the Clause in the Bill—and when we find afterwards the hon. Member for Central Edinburgh also supporting the Amendment by arguments—or shall I say, resisting the Amendment?
I must explain that my purpose was to attack the proposal in the Bill, and not to support anything.
Then the hon. Member also was more concerned about attacking the Clause in the Bill than about supporting the Amendment. In any case, neither he nor the hon. Member for South Molton succeeded in presenting any intelligible basis upon which shareholders in railway companies are to be satisfied. The strength of the language on the one hand, and the paucity of the arguments on the other hand, lead me to believe that the proposal in the Bill is, after all, the best one for the House to adopt.
The Amendment before the House is really not so much directed at what is called the guarantee as at the adoption of Stock Exchange values as the basis of a standard of remuneration for the future. I do not think I can add very much to what has already been said against adopting Stock Exchange values. After all, Stock Exchange values, as has been pointed out, depend upon what certain individuals, at certain times, are alleged to be ready to pay for shares, or, on the other hand, what they are alleged to be ready to surrender shares for, and it does not always follow that the shares are for sale at all. To a great extent would this not be, in existing circumstances, almost a part confiscation? You might very well have shares which were at a considerable discount, and were yielding to-day on their returns a rate of 7 per cent. You are going to take them on that discount and give 5 per cent for them. That is not fair, and we have endeavoured to be fair throughout. There are many other reasons why I would urge the House not to accept the Amendment. This Debate has travelled rather in the direction of discussing so-called guarantees, and the fixing of rates, and the system of adopting a standard revenue, which is included in the Bill. It has been suggested that a better way to deal with this matter would have been to give the railways a year during which they could review the situation and put forward rates. Some tribunal which was going to work sufficiently expeditiously — the Railway and Canal Commission was suggested—could then deal with them. I would ask the House to look; at the difficulties of the situation as it concerns us. There are well over 100 railway companies concerned. These railway companies before the War had very definitely-fixed charging powers, beyond which they could not go. Owing to the complete alteration in prices, and money values, these charging powers are absolutely useless to-day. It is true that owing to circumstances, which I need not detail, the rates which have been charged to-day are abnormally high. That was plain to the House a year ago, and the House confirmed what was then done. By this Clause you are going to put the railways, during the period of transition, on to a basis which will enable them to pay their present costs, to pay a reasonable return on their capital, and to embark upon necessary expenditure to meet the needs of the community. You have to give them something higher than their old charging powers. These charging powers are the outcome of long, detailed, and intricate inquiry. The old charging powers are no use. There was a unanimous request from practically every big trading organisation and the railways to give some more elastic procedure for the increasing and reduction of rates than the procedure of the Railway and Canal Commission, under which it took as long as four years or more to get I one single application about rates through. There was a unanimous demand, "Give us something simpler, something less judicial, something more expeditious."
We had to provide for the fixing of the charges which the railways would impose. We are at a time of very high prices. Costs are falling and wages are falling. Owing to the agreement made with my right hon. Friend the Member for Derby (Mr. Thomas) and those who act with him, wages are coming down to a remarkable extent. They are coming down with a smoothness which very few realise, and to an extent which very few realise. You cannot fix charges at present. No tribunal could fix charges which will be reasonable for the next year or two, and not too high for five years hence. You have to provide some sort of machinery which will gradually reduce charges as costs fall. That is the problem. You cannot say to the railways, "Charge what you are charging now and in a year all this will be settled." You cannot settle it in a year. You have got to adopt a process of gradually cutting down as costs fall. Look at the cost of rails to-day. I am told it is about a quarter of what it was six months ago. All costs are falling rapidly but they are not nearly normal yet, and you have to find some system of rate-fixing, which will gradually bring the railways down to normal charges. I think we would be sanguine to hope that these charges can fall, in the immediate future—within the next five, seven or ten years—to the charges which prevailed before the War. I do not think anybody expects that for the next few years, but they can come down very materially. You must provide something which will enable the railway companies to live and serve, and at the same time give them an incentive to manage well, and give the trader, the user of the railways, the deductions he is entitled to claim, because he has agreed to the old statutory maxima being swept to the one side and wholesale increases imposed. What have we done? We have said the old maxima cannot be introduced again. That is frankly and physically impossible, even if it were possible in any other way to introduce new maxima. We have said, "Fix something that will give a reasonable return." After all, 4¼ per cent, to 4½ per cent, is not excessive. That is what they got in 1913. We have said: "Fix something which will give a reasonable return, and fix charges at that level." We must fix charges because we are dealing with a monopoly. You cannot allow them to fix any charge they like in the open market. You cannot give them complete commercial freedom. You have to demand that they shall serve the public in a certain way, and shall not oppressively use the powers they have received.
It is nearly 10 per cent, of the present market price.
I do not know what alternative to this there is, and I have sought for one. With great respect, I do not think the alternative suggested by one of my right hon. Friends here is practicable for the reasons I have given. You cannot say, "Go on with your work. Make your own charges, and expect them to be fixed in six months or so." It is a job which will take years. We are setting up a body which judicially, but in a business-like way, will review costs as costs fall, and will annually review rates and will bring rates down, and who, until 1925, will be giving to the users of the railways the fruits of the adventitious reductions in costs. As labour costs go down, as the sliding scale operates, as the prices of material drop, advantages will go to the user of the railway. There is an Amendment later on the Paper that something might be given to the railways to encourage them to bring in economies for the benefit of the community as early as possible. The mention of the year 1925 only indicates an approximate date. The appointed day will probably be in 1925. We say to the railways, "Out of the saving that you may make in the year, out of the revenue that you make, you shall keep 1s. out of 5s. and the remaining 4s. shall go to the user." I do not suggest to the House that the proposal we have before us is the same proposal that would have been put forward if we were starting on a clean sheet.
Another thing I do not suggest is that this is a solution for all time. It may well be that in ten years' time you may have to review the whole matter, but you cannot bring in profitably a new system and say, "Take that, and that will suit you for all time." You must provide something which will gradually operate and gradually bring down charges as costs fall. There is undoubtedly a great decrease now due to us, and it can be taken in hand at once when this Bill has passed. The rates are at a level which, when they were fixed before the great trade slump, was believed to be more than was necessary to meet the working expenses of the railways; but the great trade slump and the coal stoppage came, and that was all upset. The tribunal can undertake the reduction of rates again. They are at an abnormal figure, and with the present depression in trade, I believe they are higher than trade can stand. They can be taken in hand as soon as this Bill is through, and another review can be taken in a year's time, and so it goes on annually, and in every case, until the appointed day, which is in 1925, the great decreases in cost which are the natural result of the return to normal conditions go back to the trader, the user, and the traveller. We have no other means of adopting a system of charging rates than to try and fix them at a level which, with good and efficient management, will give the railway companies a living wage, and this is the way in which we have interpreted the living wage. I do not think there was any alternative.
This is a very important matter, and I want to understand it before I give my vote. I understand the argument as far as Clause 58 is concerned, but I do not quite understand why the Government have fixed the standard provided in Clause 57. The right hon. Gentleman says it is only an average of 4¼ per cent, return on the capital of the railway companies, and I agree; but is that a fair way of looking at it? It will give to some companies a great deal more than 4¼ per cent., and to others a great deal less. From the point of view of starting afresh and fixing a new standard, is it really reasonable to take the dividends paid in 1913, which are different according to the different railway companies in question? Will the right hon. Gentleman also explain what is the answer to the proposition that this standard will operate in the direction of putting up rates when trade is bad and putting down rates when trade is good?
The first point put by the Noble Lord is met, I think, by saying that if one company in 1913 was a prosperous company and its shares stood higher than the shares of another company it is not unreasonable that it should now get a better result. We are dealing with undertakings which belong to this and to that set of shareholders. If this set of shareholders have a good property, a flourishing undertaking, should they not get something better than those who have a bad undertaking, a poor property? That is, surely, not unreasonable. In regard to the second point, I think it is true that you may find that the level of rates will be too high in bad times, but that will go to the tribunal, and I know of no other way to fix them. The tribunal will fix them, having regard to the exigencies of trade. In the past the railways have not been able to get their rates up in bad times, and, indeed, they have said, wisely, I think, that it would not be good policy to do so. The tribunal, we must remember, does not act arbitrarily. There is an application, either from the amalgamated company or from the traders, to get the rates altered before they are altered.
The remarks of the Minister reveal this one fact, that the application of this Clause is going to lead to endless trouble and difficulty. The answer he gave to the Noble Lord the Member for Hitchin (Lord R. Cecil) with regard to rich companies and poor companies failed altogether to take into consideration the prospective value and the prospective earning capacity of any particular company. In answer to the Amendment which has been moved by the hon. and gallant Member for Newcastle-under-Lyme (Colonel Wedgwood), the right hon. Gentleman said that to accept it would lead to partial confiscation, but I suggest that even if we accept the Clause as it stands, it is going to have the same effect with regard to some of the railways. It does not follow, because a railway company had a low earning capacity in 1913, that that company has a low earning capacity to-day, and consequently, under the Bill, if the earning capacity of one railway company has improved since 1913, instead of getting a larger share of the revenue corresponding to that improvement, it is going to be tied down to the earning capacity of 1913, and I suggest that that is also a partial confiscation of the property rights of that railway company. The object of the Amendment is to find a true valuation, as far as it is possible to do so. I do not suggest that this Amendment would, in every respect, fairly meet the case, but I do suggest that the principle embodied in the Amendment is a fair and reasonable principle and that it is far more applicable than that embodied in the Clause.
The Clause as it stands takes the year 1913 and guarantees the net revenue of 1913 for all time with a certain addition, and that is the addition of the 20 per cent. I said upstairs, and I say it again hers, that I would rather vote for & greater return upon the profits which have been earned by the railway companies than I would vote for the 20 per cent, which we find in the Bill. The companies are not only going to get the revenue for 1913, but they will get the 20 per cent, advantage of the fall in prices. That fall is going to be tremendous, and the Minister has mentioned a fall of £10,000,000 at a time so far as wages are concerned. The companies are going to get 20 per cent, on that £10,000,000, and that is not due to any economy, but is a pure windfall. I object to the application of a principle of that character. I have no objection to giving the railway companies a larger amount than 20 per cent, of the money they actually earn, but I protest against the provision by which they will have, first, the revenue of 1913, which cannot be equally applied to all railways—[HON. MEMBERS: "Divide, divide!"]—If hon. Members desire to go to dinner they can go and come back again. There is no obligation on them to stay here. Whilst I do not think the Amendment gives sufficient in itself, I think the Bill as it stands gives far too much, and I protest most strongly against the 20 per cent, of the amounts which will accrue, but which are not due to economies in any direction whatever.
This Amendment fixes the revenue of the railway companies on the basis of 5 per cent, on the present capital value. The Government fix the remuneration of the railway companies on the basis of the net annual revenue for 1913. The difference at first sight does not seem great, but, as the hon. and gallant Member for Durham (Major Hills) showed quite clearly, if this Amendment were accepted the remuneration of the railway companies would be about one-half of what it is under the Government scheme, and consequently the burden upon the traders and the community as a whole would be about one-half what it will be under the Bill. The hon. and gallant Member opposite says it is unfair that the railway companies should get only 4¼ per cent, on their money, and that therefore anything less than what the Bill proposes would be most unfair to the companies, but that is not a fair way of looking at the matter at all. The ordinary share in a railway company in this country is not now owned by the person who subscribed for it in the first instance. Nearly every railway share is owned now by people who have bought them subsequent to the original flotation. These shares now are standing at about 50 in the market, and the yield upon these shares if you buy them now is about 10 per cent. The people who bought them at higher prices than they are at now are in the same position as the people who bought consols or subscribed to the War Loan; they have all lost capital, because the capital value of their securities has gone down, and why should not railway shareholders be in the same position as the patriotic people who subscribed to the War Loan?
8.0 P.M.
We ask you to be just to the railway companies, to give them 5 per cent, upon their present market value, but not to be generous at the expense of the whole of the community and of the trade of the country. If you pass this Bill as it stands, you will have to repeal it in a few years' time, because inevitably the Bill will kill the trade of the country and it will add to unemployment; and, undoubtedly, if the trade of this country is to recover and flourish, we shall have to get back to something nearer the pre-War maximum freight rates and the pre-War passenger fares. This Amendment will enable us to get back to pre-War fares, or in that direction. It will enable us to get back to the pre-War maximum, and I ask the House to think twice before voting for the Government's scheme, and inflicting a burden on the country twice as great as it would otherwise have to bear.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 244; Noes, 42.
Division No. 304.] AYES. [8.0 p.m. Agg-Gardner, Sir James Tynte Hallwood, Augustine Parry, Lieut.-Colonel Thomas Henry Amery, Leopold C. M. S. Hannon, Patrick Joseph Henry Pease, Rt. Hon. Herbert Pike Armstrong, Henry Bruce Harmsworth, C. B. (Bedford, Luton) Percy, Lord Eustace (Hastings) Atkey, A. R. Henderson, Major V. L. (Tradeston) Perkins, Walter Frank Baird, Sir John Lawrence Hennessy, Major J. R. G. Pinkham, Lieut.-Colonel Charles Baldwin, Rt. Hon. Stanley Herbert, Dennis (Hertford, Watford) Pollock, Sir Ernest Murray Balfour, George (Hampstead) Hewart, Rt. Hon. Sir Gordon Pratt, John William Banbury, Rt. Hon. Sir Frederick G. Higham, Charles Frederick Prescott, Major W. H. Barnes, Rt. Hon. G. (Glas., Gorbals) Hilder, Lieut.-Colonel Frank Purchase, H. G. Barnett, Major Richard W. Hills, Major John Waller Ratcliffe, Henry Butler Barnston, Major Harry Hinds, John Rawlinson, John Frederick Peel Bellairs, Commander Carlyon W. Hohler, Gerald Fitzroy Rees, Sir J. D. (Nottingham, East) Betterton, Henry B. Holbrook, Sir Arthur Richard Rees, Capt. J. Tudor- (Barnstaple) Birchall, Major J. Dearman Hood, Joseph Reid, D. D. Bird, Sir A. (Wolverhampton, West) Hope, Sir H.(Stirling & Cl'ckm'nn,W.) Remnant, Sir James Bird, Sir William B. M. (Chichester) Hope, Lt.-Col. Sir J. A. (Midlothian) Richardson, Alexander (Gravesend) Blades, Sir George Rowland Hopkins, John W. W. Roberts, Rt. Hon. G. H. (Norwich) Blair, Sir Reginald Hopkinson, A. (Lancaster, Mossley) Roberts, Samuel (Hereford, Hereford) Boscawen, Rt. Hon. Sir A. Griffith- Horne, Edgar (Surrey, Guildford) Robinson, S. (Brecon and Radnor) Bowyer, Captain G. W. E. Hunter, General Sir A. (Lancaster) Rodger, A. K. Brassey, H. L. C. Hunter-Weston, Lieut.-Gen. Sir A. G. Roundell, Colonel R. F. Breese, Major Charles E. Hurst, Lieut.-Colonel Gerald B. Royds, Lieut.-Colonel Edmund Briggs, Harold Inskip, Thomas Walker H. Samuel, A. M. (Surrey, Farnham) Broad, Thomas Tucker Jackson, Lieut.-Colonel Hon. F. S. Sassoon, Sir Philip Albert Gustave D. Buchanan, Lieut.-Colonel A. L, H. Jameson, John Gordon Scott, A. M. (Glasgow, Bridgeton) Buckley, Lieut.-Colonel A. Jesson, C. Seager, Sir William Bull, Rt. Hon. Sir William James Jodrell, Neville Paul Seddon, J. A. Burgoyne, Lt.-Col. Alan Hughes Johnson, Sir Stanley Shaw, William T. (Forfar) Burn, Col. C. R. (Devon, Torquay) Johnstone, Joseph Shortt, Rt. Hon. E. (N'castle-on T.) Carr, W. Theodore Jones, Sir Edgar R. (Merthyr Tydvll) Simm, M. T. Carter, R. A. D. (Man., Withington) Jones, Sir Evan (Pembroke) Smith, Sir Malcolm (Orkney) Casey, T. W. Jones, G. W. H. (Stoke Newington) Smithers, Sir Alfred W. Cautley, Henry Strother Jones, Henry Haydn (Merioneth) Stanley, Major Hon. G. (Preston) Chamberlain, Rt. Hn. J. A. (Birm., W) Jones, J. T. (Carmarthen, Llanelly) Stanton, Charles Butt Chamberlain, N. (Birm., Lady wood) Kellaway, Rt. Hon. Fredk. George Steel, Major S. Strang Churchman, Sir Arthur King, Captain Henry Douglas Stevens, Marshall Clough, Sir Robert Larmor, Sir Joseph Stewart, Gershom Cockerill, Brigadier-General G. K. Law, Alfred J. (Rochdale) Sturrock, J. Leng Colvin, Brig.-General Richard Beale Lewis, Rt. Hon. J. H. (Univ., Wales) Sueter, Rear-Admiral Murray Fraser Coote, Colin Reith (Isle of Ely) Lewis, T. A. (Glam., Pontypridd) Sugden, W. H. Cope, Major William Lindsay, William Arthur Surtees, Brigadier-General H. C. Cowan, D. M. (Scottish Universities) Lloyd-Greame, Sir P. Sutherland, Sir William Craik, Rt. Hon. Sir Henry Locker-Lampson, G. (Wood Green) Taylor, J. Davidson, Major-General Sir J. H. Locker-Lampson, Com. O. (H'tingd'n) Thomas, Rt. Hon. James H. (Derby) Davies, Major D. (Montgomery) Lowe, Sir Francis William Thomas, Brig.-Gen. Sir O. (Anglesey) Davies, Sir Joseph (Chester, Crewe) Lowther, Major C. (Cumberland, N.) Thomson, Sir W. Mitchell- (Maryhill) Davies, Thomas (Cirencester) M'Connell, Thomas Edward Thorpe, Captain John Henry Dawes, James Arthur McCurdy, Rt. Hon. Charles A. Tryon, Major George Clement Denniss, Edmund R. B. (Oldham) Macdonald, Rt. Hon. John Murray Turton, Edmund Russborough Dewhurst, Lieut.-Commander Harry McLaren, Hon. H. D. (Leicester) Waddington, R. Doyle, N. Grattan Macleod, J. Mackintosh Wallace, Thomas Brown (West Down) Edge, Captain William Macpherson, Rt. Hon. James I. Walton, J. (York, W. R., Don Valley) Edwards, Allen C. (East Ham, S.) Macquisten, F. A. Ward-Jackson, Major C. L. Elliot, Capt. Walter E. (Lanark) MacVeagh, Jeremiah Warren, Sir Alfred H. Elliott, Lt.-Col. Sir G. (Islington, W.) Mallalieu, Frederick William Weston, Colonel John Wakefield Elveden, Viscount Malone, Major P. B. (Tottenham, S.) Wheler, Col. Granville C. H. Evans, Ernest Marriott, John Arthur Ransome White, Col. G. D. (Southport) Eyres-Monsell, Com. Bolton M. Martin, A. E. Whitla, Sir William Falle, Major Sir Bertram Godfray Mason, Robert Wild, Sir Ernest Edward Fell, Sir Arthur Middlebrook, Sir William Williams, C. (Tavistock) Fisher, Rt. Hon. Herbert A. L. Mildmay, Colonel Rt. Hon. F. B. Williams, Lt.-Col. Sir R. (Banbury) FitzRoy, Captain Hon. Edward A. Mitchell, Sir William Lane Wills, Lt.-Col. Sir Gilbert Alan H. Flannery, Sir James Fortescue Molson, Major John Elsdale Wilson, James (Dudley) Ford, Patrick Johnston Mond, Rt. Hon. Sir Alfred Moritz Wilson. Rt. Hon. J. W. (Stourbridge) Forestier-Walker, L. Montagu, Rt. Hon. E. S. Wilson, Col. M. J. (Richmond) Fraser, Major Sir Keith Morison, Rt. Hon. Thomas Brash Winterton, Earl Frece, Sir Walter de Morris, Richard Wise, Frederick Fremantle, Lieut.-Colonel Francis E. Munro, Rt. Hon. Robert Wood, Hon. Edward F. L. (Ripon) Gange, E. Stanley Murchison, C. K. Wood, Sir H. K. (Woolwich, West) Ganzoni, Sir John Murray, Hon. A. C. (Aberdeen) Wood, Sir J. (Stalybridge & Hyde) Geddes, Rt. Hon. Sir E. (Camb'dge) Murray, Hon. Gideon (St. Rollox) Wood, Major M. M. (Aberdeen, C.) Gee, Captain Robert Nall, Major Joseph Wood, Major Sir S. Hill- (High Peak) Gibbs, Colonel George Abraham Neal, Arthur Worsfold, T. Cato Gilbert, James Daniel Newman, Colonel J. R. P. (Finchley) Worthington-Evans, Rt. Hon. Sir L. Gilmour, Lieut.-Colonel Sir John Newman, Sir R. H. S. D. L. (Exeter) Yate, Colonel Sir Charles Edward Glyn, Major Ralph Nicholson, Reginald (Doncaster) Yeo, Sir Alfred William Goff, Sir R. Park Nicholson, William G. (Petersfield) Young, E. H. (Norwich) Goulding, Rt. Hon. Sir Edward A. Nield, Sir Herbert Younger, Sir George Gray, Major Ernest (Accrington) Norris, Colonel Sir Henry G. Green, Joseph F. (Leicester, W.) Norton-Griffiths, Lieut.-Col. Sir John TELLERS FOR THE AYES.— Greer, Harry Oman, Sir Charles William C. Colonel Leslie Wilson and Mr. Gretton, Colonel John Parker, James Dudley Ward. Gritten, W. G. Howard Parkinson, Albert L. (Blackpool)
NOES. Barker, G. (Monmouth, Abertillery) Guest, J. (York, W.R., Hemsworth) Richardson, R. (Houghton-le-Spring) Barton, Sir William (Oldham) Hall, F. (York, W. R., Normanton) Roberts, Frederick O. (W. Bromwich) Bell, James (Lancaster, Ormskirk) Hartshorn, Vernon Robertson, John Bowerman, Rt. Hon. Charles W. Hirst, G. H. Smith, W. R. (Wellingborough) Bramsdon, Sir Thomas Hodge, Rt. Hon. John Spencer, George A. Cairns, John Irving, Dan Swan, J. E. Carter, R. A. D. (Man., Withington) John, William (Rhondda, West) Thomson, T. (Middlesbrough, West) Clynes, Rt. Hon. John R. Lawson, John James Thorne, W. (West Ham, Plaistow) Edwards, C. (Monmouth, Bedwellty) Lunn, William Waterson, A. E. Galbralth, Samuel Mills, John Edmund Wedgwood, Colonel Josiah C. Gillis, William Morgan, Major D. Watts Wilson, W. Tyson (Westhoughton) Glanvllle, Harold James Myers, Thomas Young, Robert (Lancaster, Newton) Graham, R. (Nelson and Colne) Newbould, Alfred Ernest Griffiths, T. (Monmouth, Pontypool) O'Grady, James TELLERS FOR THE NOES.— Grundy, T. W. Raffan, Peter Wilson Mr. Spoor and Lieut.-Commander Kenworthy.
I beg to move in Subsection (1, c ) to leave out the words "on works."
This is really preparatory to the next Amendment in my name. The intention is to meet a point which was raised in Committee, and which I undertook to look into, in order to prevent an allowance being made in respect of capital expenditure which was really barren expenditure. The point was one which was taken up by my Labour friends, and it is given effect to by this and the next Amendment.
Amendment agreed to.
Further Amendment made: In Subsection (1, c ), leave out "or ( b )," and insert instead thereof the words "on works which enhance the value of the undertaking, but."—[ Sir E. Geddes. ]
I beg to move at the end of Sub-section (1) to insert the words amalgamation will have been effected. My Amendment proposes that the tribunal shall
It may be said that it is not right that the economies which are the result of amalgamation should go as to one-half to the companies. No doubt some hon. Members will think that all the economies of amalgamation should inure to the traders. Others will think that the larger proportion should inure to the traders. The first point on that that I want to make is that my Amendment is very carefully framed, and is confined to economies in working and management expenses rendered possible or in anticipation of amalgamation. Therefore it is confined to what was defined upstairs as real economies, as against saving of expenditure which will result from the fall in prices of material, coal, etc., and the sliding scale which brings down wages. Therefore the economies from which the companies may benefit by one-half will be the economies which they themselves will have brought into operation.
My second point is that it is only right, if the companies do obtain these cheapenings of transport, that some benefit should inure to the shareholders. My hon. Friends opposite do not, I think, really contend that all should go to the traders. I quite agree that a large proportion should go to the traders, but still, on the ground of fairness, if the railway companies manage their business well and secure these economies, a certain part ought to go to the shareholders. My next is a bigger point. It is this: It is an advantage to the whole community that we should run our railways and transport generally as cheaply as possible, and that these economies should be effected as soon as possible. As the Bill is drawn there is a temptation to the companies to put off economies until after the time a standard charge comes into operation, for then they will benefit to the extent of 20 per cent., while in economies made before that time the whole will go to the traders.
I want to make that point quite clear. It is to the benefit of the community to give an inducement to the companies to economise at the earliest possible date. If that is not done the obvious argument that may be put forward—I do not say it will, but it might—is: "It does not pay us to economise until we get something out of the economies, and until the standard charges are fixed nothing out of the economies will come to us." Therefore on all grounds, on that of fairness to the shareholders—which I do not think I put too high—on the grounds of the traders' interest—that the economies should be effected as soon as possible—and lastly on the very broad public interest that it is a good thing that these economies should be secured at the earliest possible date, I commend my Amendment to the House. It is entirely a permissive one. The Rates Tribunal may refuse to allow the companies a single penny out of the savings. What they cannot do is to give them more than one-half. It goes over the whole position, and tells the Rates Tribunal that if they consider it fair and equitable they can make an allowance to a company not exceeding 50 per cent, of such economies. I cannot imagine a Clause which is safeguarded more strictly than this or that is going to a tribunal which is more likely to exercise it, for the general good of the whole community, and not merely in the interests of the railway shareholders. I hope the Government will see their way to accept the Amendment.
I beg to second the Amendment.
I hope the Government will be very chary of accepting this Amendment. Let the House consider what safeguards there are already in the Clause. They will see that the Rates Tribunal have got to take into consideration a number of most important matters before they can take any action in the lowering of the rates at all to benefit the trader. Briefly, what are they? First of all, they have to consider the aggregate net revenues in 1913, to which much reference has already been made. Then they have to take into regard a sum equal to 5 per cent, on capital expenditure forming the basis on which interest was allowed during the period of Government control. Thirdly, they have to make such allowance as may be necessary to remunerate adequately, and doubtless full weight will be given to that word "adequately," any additional capital which may have been incurred after August of this year. There is also a very elastic condition which the tribunal must have regard to. It is
"( c ) such allowance as appears to the Rates Tribunal to be reasonable in respect of capital expenditure on works (not being less than £25,000) … which had at the beginning of the year nineteen hundred and thirteen become fully remunerative."
These things that I have enumerated will, I think, be fruitful means of preventing any reduction in rates which the railway companies will be able to bring before the tribunal. As everyone knows, on the great trunk lines there was a large capital expenditure in 1913 and up to the outbreak of the War which was not in any sense fully remunerative. The railways were prosperous and trade was good, and they were spending large capital sums. In addition to that we are now to have this proviso, and I do not see where trade is going to come in at all for any reduction of the rates to be levied. If economies are being made, why should not the whole thing go to the public after these conditions have been fulfilled, especially after the very numerous points which are still left in the Clause? The companies will be able to come before the tribunals and argue that they effected those large economies, and therefore are entitled to full and adequate consideration in regard to capital which has not yet become fully remunerative.
There is not a very great deal of that.
My impression is that it must be a very substantial sum. I think the railway companies are doing very well in this Clause, and they ought to be satisfied with the position they have already got. As hon. Members know, I am not an enemy of this Bill, and I believe some such Bill as this must be passed. I do not agree with the attitude adopted by some of my hon. Friends with whom I am closely associated on many vital points of this Bill. I do not think it is a wise policy to press a matter of this kind too far, and perhaps the hon. and gallant Gentleman will be content with having raised this point. There is no need to further safeguard the strong position which the railway companies have already under Clause 57.
I desire to support this Amendment, and in doing so I suggest that it is a proposal which is in the interests of the trader and the public. The governing words are take their share. It has been said that the whole of the economies should go to the traders, but I think they do pretty well. I know they like to run heavy motor wagons over the country roads and leave the country ratepayers to provide the rates to keep up the roads. The traders are always demanding that they should be allowed to run motor wagons at a less rate than other people, although they do more damage than the ordinary users of the roads.
There is no reason why the traders should take the whole of the result of any economies. By this Amendment I think there would be a real inducement to the companies which does not exist under the Bill to start right away effecting economies in working and management, and as a result of that traders would benefit by taking 50 per cent. I suggest that there is nothing drastic in this proposal, but on the contrary I think it is a businesslike Amendment which would lead to effective economies in a very short time, and this would be in the interest of the public and the railway companies.
I trust the Minister of Transport will accept this very modest Amendment. I believe it will prove to be an inducement to economy, and any economies in the future must redound to the benefit of the company. I cannot see that this proposal will hurt anybody, and certainly not the traders, because they will be affected equally with the railway companies.
I think my hon. and gallant Friend the Member for Durham (Major Hills) has put a good point, but I am inclined to think he makes too much of it. The Bill does rest upon economy, and that is the great hope of it. One of the principles of this Measure is that to get economies you must give inducements. What my hon. and gallant Friend is pointing out is that these inducements are not going to come into operation until after a certain period, and if they are brought into operation earlier the public might come into benefits at an earlier stage. There is, perhaps, something to be said for that point of view, but there are some difficulties in regard to this point which have not been dealt with. The first is, that when dealing with subsequent economies, you have a standard.
The Rates Tribunal has fixed a standard revenue on efficient and.economic administration, and when you come to your economies you have a definite standard with which to compare them. I do not see where the present standard is by which the comparison with these ante-dated economies are to be made. As a result of Government control the railways have not been very economically or efficiently administered. It would be a comparatively easy thing to make very large economies in the pre-standard period, if you are going to compare your economies with the present costly system of administration. You have a war administration now in being, and no doubt you could economise very greatly on that, and probably the economies in the pre-standard period are greater than in the post-standard period.
It has been pointed out that without this provision there is no inducement to make these economies, and I think there is something to be said for that point. It is quite possible if some provision of this kind is not adopted that we may not see these economies, and we may suffer further disadvantages. If other economies are made in the pre-standard period, the Rates Tribunal will have something more solid to go upon and there would be a considerable benefit to the public at a later period. If my hon. and gallant Friend had been able to indicate just where he would take his datum line for the purpose of getting his comparison in economies, and if he asked for a more modest share and said after the standard revenue is fixed we are to get 20 per cent, for an inducement, I think there might have been a good deal of force in what he said. I think, as the Amendment stands, it is really giving too little in the way of betterment and asking too much.
The only line of com parison would of course be pre-War amalgamation. As to the percentage, 50 is only a maximum, there is no obligation on the Rates Tribunal to give anything at all. I am merely providing 50 per cent, as a maximum which shall not be exceeded, and not as a minimum.
I do not think the hon. and gallant Memebr described the Clause as permissive. As I read it, the tribunal shall take economies into consideration and shall make such allow- ances. The only permissive word used is the word "may," which comes in before the words "consider fair and equitable." I, therefore, do not think it can be regarded as a really permissive Clause. It is quite true that the amount is described as a sum not exceeding 50 per cent., but we all know how words put into a Bill of this kind, whether intended to be a minimum or a maximum, are apt to become the actual sum. So I feel confident that if this were adopted the effect would be that the tribunal, having come to the conclusion that allowance ought to be made, will feel itself directed to make that allowance 50 per cent.
Surely not. They may say that nothing is fair and equitable. They may also agree that something ought to be given, and they are simply told that it should not be more than 50 per cent. I cannot conceive any words which would leave such a question more clearly to their discretion.
In the working of this Bill hereafter, if it does become an Act, the traders and the railway companies must necessarily go hand in hand on the friendliest terms, and if there is not mutual understanding and goodwill between the railway administration and the traders the Bill, when it becomes an Act, cannot succeed. I agree it would be a decided advantage to the traders and the country to have a speeding up of all economies that can be effected in the way suggested by my hon. and gallant Friend the Member for Durham (Major Hills). No one would object to a reasonable concession being made to the railway companies in regard to these economies, and if the hon. and gallant Member would agree to make his limit 33⅓ per cent, instead of 50 per cent., I am quite certain it would be acceptable to the trading community of the country. It would be an advantage to the traders and the public generally that there should be as vigorous a speeding up of the preparations for the operation of the Act as possible, and if the hon. and gallant Gentleman will meet us on this question of percentage, I am sure the trader will not stand in the way of giving the railway companies the fullest opportunity.
Under normal conditions most hon. Members would agree with the contentions put forward by the hon. and gallant Gentleman, but I venture to submit that the conditions are not normal at the present time, and that these economies which are to be effected in the immediate future are economies in the main for which the railway companies are not in any way responsible. The Minister himself stated that the economies that would come about in the immediate future would be large and considerable, and would be due to the fall from the present high figure of prices of material and wages and to the cost of management generally. When debating this matter in Committee upstairs I urged that the economies would be due to circumstances over which the railway companies had no control, and when it was urged that they should be excluded from the 20 per cent, in which they are to share after the standard revenue has been fixed, the right hon. Gentleman resisted, saying that it would be possible to differentiate the sources from which these economies would come. If there was any substance in that argument, I submit it is a sound reason why the right hon. Gentleman should resist this Amendment to-day, because it will be equally impossible to differentiate according to the Minister's own statement between those economies partly due to fortuitous circumstances for which the companies could make no claim and those economies which were due to their own ingenuity and management.
I think there is a little misunderstanding here. Objection was taken to the differentiation between automatic economies and earned economies, if I may use those phrases. Here what I ask for is a differentiation at the most easy period of the transition period, when the fall in prices and the operation of the sliding scale in wages and the fall in the cost of coal are well-known factors. There is no difficulty in differentiating for one single period as compared with the difficulty of differentiating over a series of years when the factors could not be so clearly distinguished.
I see the hon. and gallant Member's point, but I submit that there is a difficulty, and I suggest that those economies which are due to the Bill—economies of amalgamation—are not really economies for which the railway companies themselves should take credit, but are economies brought about by the Measure itself, and, in so far as it is a public Measure, although, if you like, it is imposed upon them, those economies due to amalgamation belong to the public. Surely the main reason for the Bill—it has been submitted to the House over and over again—is that owing to amalgamation, owing to this coordination, economies will be possible, and it is hardly fair for the railways to turn round and say that, because they are making those economies which they, have been directed to make, and in order that they may carry out their part of the undertaking, they must be given a bribe to induce them to make those economies. I do not want to use strong language, but it does seem to me to savour of something in the nature of blackmail to say, "Unless we get a considerable proportion of the advantages of economies due to amalgamation, we are going to ca'canny, we are going to retard and hold up and withhold from the public and the State the advantage which this Bill would otherwise bring to them." This is a very dangerous Amendment, and cuts at the principle of the Bill. I agree that under normal conditions in normal times, when you have your standard revenue, economies due to efficiency of management should go in a large measure to the railway companies, but in these abnormal times economies, whether they be due to the fall in the cost of materials or wages, or whether they be economies due to amalgamation itself, are outside the advantages which the railway companies should have, and they should go to the public as a whole.
I hope the House will see its way to come to an early decision on this matter in the interests of other Amendments which remain to be dealt with before 11 o'clock. My right hon. Friend the Minister has given very careful consideration to this matter, and although he desires to keep an open mind, and has expressed the wish that I would do the same, he certainly sees that there is great force in the case put forward in this proviso. I do not think that it is really a proviso wholly in the interests of the railway companies. As was pointed out by the hon. Member for Moseley (Mr. Hannon), the interests of the traders and the interests of the railways are not antagonistic. They are mutual, and the greater prosperity you can bring to the railways the more surely will you secure, not only that your present system will be adequately worked, but that there shall be those developments which are urgently needed in other parts of the country not at present served by railway facilities. It think it is an understatement of the case to say that there is no inducement to the railway companies to make economies in anticipation of the appointed day. We all know that the appointed day is not likely to come before the 1st January, 1925, and unless economies are effected in the meantime the railway companies stand to gain by the economies which they effect after the appointed day. Not only, therefore, is there no inducement to them to make economies promptly, but the inducement is in the other direction, namely, that they should postpone those economies.
I do not know to what extent that factor will control the management of the railways. The hon. Member for Middlesbrough (Mr. T. Thomson) used rather strong language about it. He talked about blackmail. But, after all, the railway directors owe a duty to their shareholders, and they have to see how they can secure in the long run for their shareholders some little increment upon the present revenue which they hope to secure under the standardisation of revenue given to them by this Bill. I am not quite sure that any of us can be such purists as to say that it would be improper for the railway companies to look forward and to say, "Well, if we are very energetic now in making economies in"—in the words of this Amendment—"working and management expenses"—I commend these words to the House—"if we are very energetic in making those economies now, if we get rid of superfluous general managers and effect other economies which may be open to us, we are not doing it for the benefit of our shareholders, but are doing it to their ultimate disadvantage." Railway companies might perhaps be so high minded as to say, "We have nothing to do with our shareholders; our only interest is that of the public," but I have my doubts about it. I am not at all sure that that is the attitude they would assume towards this matter. Therefore, it is to the interest of the public to get these economies quickly and promptly made, and to see that the railway companies have a reasonable inducement in order to effect that result. If they do that, what does this proviso direct? It is mandatory in certain directions, as was pointed out by, I think, my hon. and gallant Friend the Member for Newcastle (Major Barnes). It is not completely of a permissive character. It says in terms, not only that the tribunal shall take these matters into their consideration, but that they shall make such allowance—which must mean some allowance—in respect of them as they think fair and equitable. Having come to that conclusion, then they are limited to the 50 per cent. The hon. Member for Moseley suggested that, on the principle of giving and taking a little, it might be wise to make that 33⅓ per cent., and if the railway companies see their way to meet that suggestion in the extremely friendly spirit in which it was made, it does not seem to me that it would prevent the beneficent operation of this proviso so far as it affects the public, and it might, I think, afford a happy solution of our discussion.
I beg to move, as an Amendment to the proposed Amendment, to leave out the word "fifty" ["to an amount not exceeding fifty per cent, of such economies"], and to insert instead thereof the words "thirty-three and one-third."
My hon. and gallant Friend would be well advised to accept the compromise which has been offered on this matter. I am far more interested in this question as a trader than on behalf of the railways. My object is to see rates reduced, because they are strangling many branches of trade in this country, and it is essential that as soon as possible we should have some relief. I am bound to say, human nature being what it is, that I think it is most desirable that the railway companies should have an opportunity now of gaining something—that some inducement should be given to them to make economies as rapidly as possible and as early as possible. If they postpone these economies for a certain time, the provision in the Bill which gives them 20 per cent, of the economies made later on will, no doubt, make them wish to postpone economies as long as possible, and not to carry them out with the thoroughness and completeness with which I have no doubt they would carry them out if they had an inducement to do so. That inducement is offered by the 33⅓ per cent, which the hon. Member for Moseley suggested. It is still left in the power of the Government to reduce it if necessary. It would depend upon the extent of the economies. If they were large and sweeping, or if they arose, as the hon. Member for Middlesbrough suggested, from adventitious circumstances alone, the percentage might, perhaps, be reduced.
I beg to second the Amendment to the proposed Amendment.
I do not oppose this proposal, but I wish to demur to its being used later to increase the 20 per cent, to 33 per cent. I do not want to pre-judge that discussion.
I am not moving that.
I understand that. It still leaves in the hands of the tribunal the power not to give the 33j per cent. If they had been obliged to give that, I should oppose it, because I regard this pre-standard period as being the most fruitful period for economy. I understand the subsequent discussion will not be prejudiced by this Amendment.
Amendment to the proposed Amendment agreed to.
Question proposed, "That those words, as amended, be there inserted in the Bill."
Is not this far too narrow a view to take? Is it not possible that there may be other economies made in the working?
If my hon. and gallant Friend would like to extend the Amendment, I should be the last to object.
Generally, I agree that the traders' interests and the railway companies' interests are very largely identical, and there is no idea of setting up the traders to fight the railway companies or the railway companies to fight the traders, and so far as the Bill is based on that idea it is stirring up public trouble. As regards the particular Amendment, I entirely agree that it is extremely desirable that all public economies should be made at once. I hope the House will adopt the Amendment.
Proposed words, as amended, there inserted in the Bill.
I beg to move, in Sub-section (2), to leave out the words "Subject as aforesaid," and to insert instead thereof the words " Provided that."
9.0 P.M.
This is more than a verbal Amendment. It seeks to make a considerable change in the basis upon which the rates shall be fixed. In the first Sub-section we have defined what is to be the standard revenue, and we have laid down upon what basis that standard revenue has to be calculated. In Sub-section (2) we lay down the basis upon which that standard revenue shall be calculated. Having fixed the amount previously, now we say by what means the railway companies are to raise this amount, which is to be determined by standard revenue, and there are, of course, two opposing and fundamental principles upon which this can be arrived at. The object of the Amendment is to stress and to emphasise the desire that the basis upon which rates shall be fixed shall be such a basis as will ensure the maximum development and extension in the public interest of the carriage by railway of merchandise and of passengers. That is, in the public interest and in the interests of the railways themselves, the soundest basis to take. On the other hand, you may take the narrower view that you-should raise your rates on the existing service so that they may increase and secure the standard revenue. But the other objective is the one in the greater public interest, that in seeking to serve the public interest by fixing such charges as will ensure the maximum development you will in the end serve better the interests of the railways and of the shareholders, and it is with the desire that the tribunal shall have before it that side of the question emphasised and stressed that I move the Amendment. The point the tribunal has to consider now is whether in fixing the rates which are to raise the amount, which is settled in Sub-section (1), they are to have regard to the best development of the railway service, and seek to extend it, both with regard to merchandise and to passengers, so that the public claims may be satisfied, and in so doing they may increase the general advantage.
It has been suggested that here we are dealing with private property and must not interfere, control, and regulate. This is not private property in the narrow sense, because it is private property which has been granted a certain monopoly and a certain privileged position, and in exchange for those monopoly rights and for those privileged positions the public have a right to say that they shall have the very best service which can be provided, and if you suggest in this Clause that the rates shall be fixed with the main idea of extending the service to get more efficient results and more productive service, you accomplish both ends. It is altogether a false and narrow view to suggest that you have merely to carry on as you are at present and merely to increase the rates in order to get your standard revenue. You would get the absurd and false position that as trade got worse rates would go higher, and as trade improved and there was greater amount of traffic the rate would go down. What you want is, that when things are worse and trade declines you should reduce your charges in order to extend and cultivate the trade which would otherwise go from you. Therefore, I submit, that the Amendment is a substantial one, and that it is giving a sound and right direction to the Rates Tribunal, that they shall have regard, in the first instance, in fixing such charges as will secure the maximum development of the very best service that is possible. To take any other view is a narrow view, and in the end it will conflict with the best interests of the railway shareholders and the railways, as well as the public at large.
I beg to second the Amendment.
I would emphasise the point that Sub-section (2) should not be subordinate to Sub-section (1). The primary object of this Bill is not to secure a standard revenue to the railway companies, but to get greater efficiency and economy in railway management, and the reason we move this Amendment is that we want the Sub-section dealing with the efficiency of railway management and the improvement of facilities on the same level as that which deals with standard revenue. I hope the Minister will see his way to accept the Amendment.
The effect of the Amendment is to lay emphasis on Sub-section (2). It sets out that the purpose of Subsection (2) is to obtain a maximum development and extension in the public interest of the carrying by the railways of merchandise. As was pointed out in Committee, you would secure the maximum extension of the carriage of merchandise by charging no rates at all. If you want only to secure the maximum extension of the carriage of merchandise your standard revenue goes, and you had better say that the railways are to carry all the goods that are brought to them. I look at this Clause and at the whole Bill from a different angle. The main object of the Bill is the public good. We are here to secure one thing, and one thing only, and that is, the benefit of the public. I am certain that in the long run transport is best managed by companies that are not nationalised. I may be right or I may be wrong, but believing that I have to accept all that it carries with it.
In my view Clause 57 has for its primary object the securing of a very moderate return to railway shareholders. It is avowedly the one Clause which enables the standard revenue to be earned. If you are going to turn all that round and to say that in the only Clause which would give a standard revenue the first consideration is not to be a revenue consideration it makes a very great difference to the Bill. Hon. Members will admit that 4j per cent, upon your capital, which, at post-War prices is worth about half what it was in 1913, is not a very large return on capital. I do not see any half-way house between those who want to buy out the railways and those who, like myself, believe in private capital, and that you ought to give a fair return on that capital. You have your lines built by private capital, and here you are giving a fair return to the shareholders. The first consideration in this Clause is the earning of the standard revenue. We had a very full discussion on this Clause upstairs, when the hon. Member for Middlesbrough (Mr. Thomson) moved an Amendment similar to the one he has now moved, and the Government put in words which the majority of the Committee accepted, which were thought to be a very fair compromise on a difficult question. There fore, I hope the House will support what the Government did in Committee.
My hon. Friend who moved the Amendment said that it was more than verbal, and that it had real substance in it. I am not quite sure that he is right. If he is right, it is wrong, because the object of this Clause is to try to secure revenue for the railway companies. You cannot secure revenue by Act of Parliament unless you make a grant out of public funds. You can, however, aim at conditions which will be likely to produce that result. The main object of Clause 57 is to secure that railway companies are not less profitable than they were in 1913, except so far as the reduced money values make them less profitable. The Government were anxious to meet this point in Committee, and they attempt to meet the interests both of the railway companies and the traders by Sub-section (2) as it stands, because the tribunal, when they are trying to raise the revenue for the railway companies, are there directed to inquire into the charges in some detail, to see whether the existing charges, or some of them, have had a prejudicial effect.
That is an important matter. It might very well be that when they were engaged upon the duty of trying to fix a charge which would be productive of revenue, they might fix some particular charges and stifle traffic, and thus have a deterrent effect upon the revenue produced rather than an encouraging effect. Therefore there is direction, not only in the interests of the railway companies, but in the interest of the trader, to adjust the charges so as to produce an effect which is to the advantage of both. If this Amendment has substance in it—and I hope that my two hon. Friends who are responsible for it will not think me ill-natured if I say that I doubt whether it has—then it might be reduced to an absurdity, because if the primary object is to give the maximum extension and development, in the public interest, of the carriage by rail, then you may reduce the charges to such an extent that you reduce the revenue which the Clause is intended to produce. I do not think that that is the effect of it. I doubt very much whether it would have any effect. I think that the tribunal would direct their attention to the main duty of trying to fix charges which would produce the revenue, and in so doing adjust those charges in such a way that they would be best calculated to attain the object which they have in view, to ensure the maximum development and extension of railway facilities, and in particular to make sure that any existing charges do not defeat the object in view. I hope that my hon. Friends will not press the Amendment
I am sorry that I cannot follow the argument of the hon. and learned Gentleman when he says that he does not think there is much substance in the Amendment. I am glad that the hon. and gallant Member for Durham (Major Hills), who has as much knowledge of railways as the hon. and learned Gentleman, expressed alarm at the effect of giving this direction to the tribunal. That is a good sign from our point of view. I think that the Amendment is of very great importance. Are the railways a public utility service or a profit-making concern? Before the passing of this Bill you might say they were a profit-making concern, but after the passing of this Bill you will establish a monopoly as absolute as the telephone. There will be only one group of railways in each district, and so far as railway transit is concerned they will have autocratic powers, apart from this shadowy tribunal as regards fixing rates. I admit that there are provisions made for the interest of traders and bodies of merchants being heard, but to say that on top of such a monopoly as you are establishing the primary object is to get a return on the capital invested in the railways is, I think, a most mischievous doctrine.
The hon. and gallant Member for Durham talks of the very modest return on capital, and says that the Bill only provides 4⅓ per cent., that being the average dividend paid on the 1913 trading account. But you could quite recently go into the market and buy railway stock round about 50. That means that you will get on that calculation a return of 8⅔ per cent. May I also point out that 5 per cent, is allowed in paragraph ( a )? The time has come when it must be laid down that capital will have to be content with a smaller rate of interest. If labour has to take smaller wages, it is only fair that capital should take smaller interest. I have an Amendment to reduce the 5 per cent, in paragraph ( a ) to 3½ per cent, which I think would be much fairer. We have got to realise that capital must not look for a return equal to that which it received during the boom years of the War and the few years of the spurt in trade after the Armistice. I have never been able to understand the actual implication of the first part of Clause 57. As far as I can gather, we are allowing the aggregate net revenues earned in the year 1913, together with a sum equal to 5 per cent. on capital expenditure, forming the basis on which interest was allowed. How much of the invested capital of the railways is covered by that paragraph? My reading is that the greater part of the stocks are covered by paragraph ( a ). If that is the case—.
It is only a comparatively small sum—I think something like £20,000,000. It is new capital.
I am obliged to the hon. and learned Gentleman, because the wording is not clear. Now with regard to the rates at present in operation that have been fixed by the present Rates Advisory Committee on the basis of providing a certain fixed revenue, that system is intended to continue. The result, so far, of this method of calculating the rates will be shown better by a couple of concrete examples than in any other way. I could quote sheafs of examples showing the effect of some of these rates, and I may explain the result on an important trade. I will take a few figures, from scores of similar figures, from the rates for carrying fish from Hull to various large centres of population. Take the case of the carriage of fish from Hull to Aberdare. Before the War two quarters weight cost 2s. 9d., to-day it is 4s. 10d. From Hull to Aberydon it was 2s. 7d. before the War, and it is 4s. 6d. now. These are rates fixed on the system of producing a certain fixed revenue. From Hull to Accrington it was 1s. 9d. before the War, and to-day it is 3s. 1d.
Rather less than 100 per cent.
Some of them are more.
The fish merchants took about 200 per cent.
From Hull to Amesbury it was 2s. before the War, and to-day it is 5s. 10d. That is more than 100 per cent. From Hull to Ashwater it was 2s. and is now 5s. 10d. From Hull to Hurstlowne it was 2s. before the War, and it is 5s. 8d. to-day. That is more than 100 per cent. I daresay there has been a good deal of profit in other directions as well, but I can tell the right hon. Member for Derby that with these charges it is impossible to run the trawlers at a profit, and to-day we have hundreds of trawlers laid up. I know there are other causes, such as the high cost of coal, and so on, but this is one of the reasons of the trawlers being laid up in Hull, Grimsby, and other ports. Roughly, only about 20 per cent, of the trawlers are fishing, and a good many of those are running at a loss. If that is an example of rate fixing by the Rates Advisory Committee—I quite admit that that Committee worked very fairly and fixed these rates very carefully indeed—if that is an example of fixing rates to produce revenue, and if we are to continue that in future, Heaven help the trade of this country. It is much more important and desirable that the direction to the tribunal should be that the first charge on the railways should be to give the maximum development and extension in the public interests in the carriage of goods by rail.
Is this a Bill for endowing the railway companies, or a Bill for helping the traders of this country to get going again after the serious slump through which we have been passing? The railways are practically given a monopoly. Competition is removed from very great areas of the country. What have we in return? So far, unless these words are accepted, only the vague words in the first part of Clause 57, which say that, so far as practicable with efficient and economical working and management, rates shall be fixed for a certain return, and so on. That is not a sufficiently strong direction, and the Bill would be much better if Sub-section (2) had preceded Sub-section (1) in Clause 57, and if we had started with the words set out in Sub-section (2) and with the alteration in the first sentence proposed by my hon. Friend. The case is very strong, and I wish I could have put it better and as well as my hon. Friend did. I am quite certain that unless some alteration is made in Clause 57, which is the crucical Clause of the Bill, that the Measure will not work. It may work temporarily for the benefit of the railway stock holders, and so on, but sooner or later as trade suffers so they will suffer. The long-sighted view for even the railway directors to take would be to insist on this alteration in the Sub-section.
With regard to the suggestion of the last speaker, that the considerations in Sub-section (1) should come after those in Sub-section (2), the first essential is that sufficient funds and sufficient pecuniary resources should be forthcoming to make the railways go on working at all. Some speakers, including the right hon. Member for South Molton (Mr. Lambert) have criticised the amount that is going to be allowed to railway shareholders. The last speaker has also criticised in that sense, but hon. Members seem to forget that the working of the railways will come to an end unless money can be raised for capital and for development expenditure, and that it cannot be raised unless a certain return is ensured. The Bill says it will allow railway companies to make such charges as will enable them to get back a minimum return so as to keep them going. Without that minimum return you cannot raise the money for development expenditure. If nationalisation came into force, and the Government took over the whole of the railways, you would have to enable the Government to charge rates as high as those provided for in the Bill or they could not raise money to buy the railroads or keep them going. The old proposition holds good that the railroad system must stand on its own legs. If we had nationalisation it would be absolutely necessary to ensure that the users of railroads should supply sufficient funds to enable the railway systems to keep going.
I think the underlying opposition of my hon. and gallant Friend (Lieut.-Commander Kenworthy) is based on the assumption that the railway managers are fools. We have to face this fact, and the sooner we come right up against it the better, that if the railway managers are fools then they will do all that my hon. and gallant Friend predicts, but that in doing it they will cripple their undertakings just as much as they will cripple the public. We have to keep that clearly in mind because they themselves will be as interested in getting traffic as anybody else. If they are not, their whole undertaking fails, and they will be judged responsible for it. The hon. and gallant Member gave two illustrations with figures. Let me pay him the compliment of saying how studiously he represents his constituency by always bringing out these facts. Let us judge the thing fairly, however. He has given two illustrations from his own constituency with regard to fish, the rates on which were increased, in two cases out of three, by 100 per cent. He says, "Here is an illustration of the injustice to the fish merchants of Hull." He did not proceed to tell the House that these same fish merchants had increased the price of their fish during the War con siderably more than 100 per cent. If some of the rumours that we hear and the statements in the Press are true, when it did not pay them to sell at about 300 per cent, profit they returned the fish to the sea so that they could get a monopoly of it. These are the people who squirm about 100 per cent, increase. The House does not interfere with the fish merchant from Hull. It says, "Let him make as much profit as he likes," and he is master of his own situation.
The House rightly says that, so far as the railways are concerned, there must be some legislative action. Having said that, it has to determine what is a fair return on the capital. My own Bill has been quoted repeatedly here. It is a Bill for nationalisation, and however folk may quarrel with the objects or methods of the Measure, its underlying principle is the recognition both of the railway shareholders and other interests, and there is no confiscation at all. Supposing that Bill were law and that you were in precisely the same position as you are to-day, and that the railways were the property of the State. Supposing the charges were precisely the same as they are to-day and that the railway wages were the same. Here let me say, seeing that so much has been said about wages, I hope the House will appreciate that the £17,000,000 that came off this year—there are many more millions to come off—came off without any agitation, ill-feeling, or disturbance. [HON. MEMBERS: "Hear, hear."]
You hear a lot about the wickedness of the workers when there is a dispute. I am entitled to point out how readily the railwaymen are accepting reductions in their wages. It shows the wisdom of an agreement which recognised that it was necessary to take into consideration abnormal circumstances. No other class of worker did it at the time, and we were condemned for what we did, but events have justified our doing it. Assume that the wages were as they are to-day; assume that the costs were the same as those to-day, and that State ownership was established, and that the railways were bought out at the price indicated in my Bill. The Chancellor of the Exchequer in his Budget statement would say that on the railways there was a deficit of £10,000,000, £20,000,000, or perhaps £30,000,000. What would this House have to do? It would have to choose whether it would meet the deficit from the general taxpayers of the country, or whether it would say, "We will increase the rates in order to meet the deficit." That is exactly what would happen. If we are to approach this question in the right way, it is pure humbug on every Amendment to say that this Bill represents an unholy bargain between the railway companies and the trade unions. If we are to have peace in
industry we must encourage employers and employed, where their interests are mutual, to face the facts and work together. The only alternative is ill-will and unrest. If peace in the industry is to be encouraged, we cannot be accused of fleecing the public. Whether the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) knows it or not, those who are connected with the railways know perfectly well that if this Bill had not been introduced, and if, on 16th August next, the railways had to revert to the 1914 position, large numbers of the railways would have to give notice to their staff that their wages would be reduced, and my hon. and gallant Friend would then have to go to Hull and justify to the Hull railwaymen, who sent him here, the fact that he was opposed to any system which enabled their wages to be maintained. The sooner we come down to the facts of the case the better.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 226; Noes, 53.
Division No. 305.] AYES. [9.41 P.m. Agg-Gardner, Sir James Tynte Davies, Sir William H. (Bristol, S.) Herbert, Dennis (Hertford, Watford) Ainsworth, Captain Charles Denniss, Edmund R. B. (Oldham) Hewart, Rt. Hon. Sir Gordon Amery, Leopold C. M. S. Dewhurst, Lieut.-Commander Harry Higham, Charles Frederick Armstrong, Henry Bruce Doyle, N. Grattan Hilder, Lieut.-Colonel Frank Astbury, Lieut.-Com. Frederick W. Edge, Captain William Hills, Major John Waller Atkey, A. R. Edwards, Allen C. (East Ham, S.) Hinds, John Baldwin, Rt. Hon. Stanley Elliot, Capt. Walter E. (Lanark) Holbrook, Sir Arthur Richard Barlow, Sir Montague Elliott, Lt.-Col. Sir G. (Islington, W.) Hood, Joseph Barnett, Major Richard W. Elveden, Viscount Hope, Sir H. (Stirling & Cl'ckm'nn.w.) Barnston, Major Harry Evans, Ernest Hope, Lt.-Col. Sir J. A. (Midlothian) Benn, Sir A. S. (Plymouth, Drake) Eyres-Monsell, Com. Bolton M. Hope, J. D. (Berwick & Haddington) Birchall, Major J. Dearman Falle, Major Sir Bertram Godfray Hopkins, John W. W. Bird, Sir William B. M. (Chichester) Fell, Sir Arthur Hopkinson, A. (Lancaster, Mossley) Blades, Sir George Rowland Ford, Patrick Johnston Home, Edgar (Surrey, Guildford) Blair, Sir Reginald Foreman, Sir Henry Home, Sir R. S. (Glasgow, Hillhead) Boscawen, Rt. Hon. Sir A. Griffith- Forestier-Walker, L. Hunter, General Sir A. (Lancaster) Bowerman, Rt. Hon. Charles W. Fraser, Major Sir Keith Hunter-Weston, Lieut.-Gen. Sir A. G. Bowyer, Captain G. W. E. Frece, Sir Walter de Inskip, Thomas Walker H. Breese, Major Charles E. Fremantle, Lieut.-Colonel Francis E. James, Lieut.-Colonel Hon. Cuthbert Briggs, Harold Galbraith, Samuel Jameson, John Gordon Broad, Thomas Tucker Gange, E. Stanley Jodrell, Neville Paul Brown, T. W. (Down, North) Geddes, Rt. Hon. Sir E. (Camb'dge) Johnson, Sir Stanley Buckley, Lieut.-Colonel A. Gee, Captain Robert Johnstone, Joseph Bull, Rt. Hon. Sir William James Gibbs, Colonel George Abraham Jones, Sir Edgar R. (Merthyr Tydvil) Burn, Col. C. R. (Devon, Torquay) Gilbert, James Daniel Jones, Sir Evan (Pembroke) Carr, W. Theodore Gilmour, Lieut.-Colonel Sir John Jones, G. W. H. (Stoke Newington) Carter, R. A. D. (Man., Withington) Glanville, Harold James Jones, Henry Haydn (Merioneth) Casey, T. W. Glyn, Major Ralph Jones, J. T. (Carmarthen, Llanelly) Cautley, Henry Strother Goulding, Rt. Hon. Sir Edward A. Kellaway, Rt. Hon. Fredk. George Chamberlain, Rt. Hn. J. A. (Birm., W.) Gray, Major Ernest (Accrington) Kelley, Major Fred (Rotherham) Churchman, Sir Arthur Green, Joseph F. (Leicester, W.) Kidd, James Clay, Lieut.-Colonel H. H. Spender Greene, Lt.-Col. Sir W. (Hack'y, N.) King, Captain Henry Douglas Clough, Sir Robert Greenwood, Colonel Sir Hamar Kinloch-Cooke, Sir Clement Cockerill, Brigadier-General G. K. Greig, Colonel Sir James William Law, Alfred J. (Rochdale) Coote, Colin Reith (Isle of Ely) Gritten, W. G. Howard Lewis, Rt. Hon. J. H. (Univ., Wales) Cope, Major William Hailwood, Augustine Lewis, T. A. (Glam., Pontypridd) Cowan, D. M. (Scottish Universities) Hall, Rr-Adml Sir W.(Llv'p'I.W.D'by) Lloyd-Greame, Sir P. Davidson, Major-General Sir J. H. Harmsworth, C. B. (Bedford, Luton) Locker- Lampson, Com. O. (H'tingd'n) Davies, Alfred Thomas (Lincoln) Henderson, Major V. L. (Tradeston) Lowther, Major C. (Cumberland, N.) Davies, Sir Joseph (Chester, Crewe) Hennessy, Major J. R. G. M'Connell, Thomas Edward Davies, Thomas (Cirencester) Henry, Denis S. (Londonderry. S.) McCurdy, Rt. Hon. Charles A. M'Lean, Lieut.-Col. Charles W. W. Pratt, John William Thomas, Brig.-Gen. Sir O. (Anglesey) Macquisten, F. A. Prescott, Major W. H. Thomas, Sir Robert J. (Wrexham) Maddocks, Henry Purchase, H. G. Thomson, Sir W. Mitchell- (Maryhill) Mallalieu, Frederick William Ramsden, G. T. Thorpe, Captain John Henry Malone, Major P. B. (Tottenham, S.) Raper, A. Baldwin Tryon, Major George Clement Martin, A. E. Ratcliffe, Henry Butler Turton, Edmund Russborough Mason, Robert Rees, Sir J. D. (Nottingham, East) Waddington, R. Matthews, David Rees, Capt. J. Tudor- (Barnstaple) Wallace, Thomas Brown (West Down) Middlebrook, Sir William Remer, J. R. Walton, J. (York, W. R., Don Valley) Mildmay, Colonel Rt. Hon. F. B. Remnant, Sir James Ward, Col. L. (Kingston-upon-Hull) Mitchell, Sir William Lane Richardson, Alexander (Gravesend) Warner, Sir T. Courtenay T. Molson, Major John Elsdale Roberts, Rt. Hon. G. H. (Norwich) Warren, Sir Alfred H. Mond, Rt. Hon. Sir Alfred Moritz Roberts, Samuel (Hereford, Hereford) Wheler, Col. Granville C. H. Montagu, Rt. Hon. E. S. Roberts, Sir S. (Sheffield, Ecclesall) White, Col. G. D. (Southport) Morison, Rt. Hon. Thomas Brash Robinson, S. (Brecon and Radnor) Whitia, Sir William Morris, Richard Rodger, A. K. Wild, Sir Ernest Edward Morrison, Hugh Roundell, Colonel R. F. Williams, Lt.-Col. Sir R. (Banbury) Murray, Lieut.-Colonel A. (Aberdeen) Samuel, A. M. (Surrey, Farnham) Wilson, James (Dudley) Murray, Hon. Gideon (St. Rollox) Sanders, Colonel Sir Robert Arthur Wilson, Rt. Hon. J. W. (Stourbridge) Murray, William (Dumfries) Sassoon, Sir Philip Albert Gustave D. Wilson, Col. M. J. (Richmond) Nall, Major Joseph Scott, A. M. (Glasgow, Bridgeton) Wise, Frederick Neal, Arthur Seager, Sir William Wood, Hon. Edward F. L. (Ripon) Newman, Sir R. H. S. D. L. (Exeter) Seddon, J. A. Wood, Sir H. K. (Woolwich, West) Nicholson, Reginald (Doncaster) Shaw, William T. (Forfar) Wood, Sir J. (Stalybridge & Hyde) Norris, Colonel Sir Henry G. Shortt, Rt. Hon. E. (N'castle-on-T.) Worsfold, T. Cato Norton-Griffiths, Lieut.-Col. Sir John Simm, M. T. Worthington-Evans, Rt. Hon. Sir L. Oman, Sir Charles William C. Smith, Sir Malcolm (Orkney) Yate, Colonel Sir Charles Edward Parker, James Smithers, Sir Alfred W. Yeo, Sir Alfred William Parkinson, Albert L. (Blackpool) Stanley, Major Hon. G. (Preston) Young, E. H. (Norwich) Parry, Lieut.-Colonel Thomas Henry Stanton, Charles Butt Young, Sir Frederick W. (Swindon) Pease, Rt. Hon. Herbert Pike Steel, Major S. Strang Younger, Sir George Percy, Lord Eustace (Hastings) Sturrock, J. Leng Perkins, Walter Frank Sueter, Rear-Admiral Murray Fraser TELLERS FOR THE AYES.— Pinkham, Lieut.-Colonel Charles Sugden, W. H. Colonel Leslie Wilson and Mr. Pollock, Sir Ernest Murray Taylor, J. Dudley Ward. Pownall, Lieut.-Colonel Assheton Thomas, Rt. Hon. James H. (Derby)
NOES. Acland, Rt. Hon. Francis D. Hartshorn, Vernon Roberts, Frederick O. (W. Bromwich) Barker, G. (Monmouth, Abertillery) Henderson, Rt. Hon. A. (Widnes) Rose, Frank H. Barnes, Major H. (Newcastle, E.) Hirst, G. H. Royce, William Stapleton Barton, Sir William (Oldham) Hodge, Rt. Hon. John Sexton, James Bramsdon, Sir Thomas Hogge, James Myles Shaw, Thomas (Preston) Brown, James (Ayr and Bute) John, William (Rhondda, West) Smith, W. R. (Wellingborough) Cairns, John Jones, J. J. (West Ham, Silvertown) Spencer, George A. Carter, W. (Nottingham, Mansfield) Kiley, James Daniel Swan, J. E. Clynes, Rt. Hon. John R. Lambert, Rt. Hon. George Thorne, W. (West Ham, Plaistow) Davies, Evan (Ebbw Vale) Lawson, John James Waterson, A. E. Edwards C. (Monmouth, Bedwellt) Lunn, William Wedgwood, Colonel Josiah C. Entwistle, Major C. F. Lyle-Samuel, Alexander Williams, Aneurin (Durham, Consett) Fildes, Henry Maclean, Rt. Hon. Sir D. (Midlothian) Wilson, W. Tyson (Westhoughton) Gillis, William Mills, John Edmund Wood, Major M. M. (Aberdeen, C.) Graham, R. (Nelson and Colne) Myers, Thomas Young, Robert (Lancaster, Newton) Griffiths, T. (Monmouth, Pontypool) Newbould, Alfred Ernest Grundy, T. W. O'Grady, James TELLERS FOR THE NOES.— Guest, J. (York, W.R., Hemsworth) Raffan, Peter Wilson Mr. Trevelyan Thomson and Lieut.- Hall, F. (York, W.R., Normanton) Richardson, R. (Houghton-le-Spring) Commander Kenworthy.
I beg to move, after Sub-section (4), to insert a new Subsection—
"(5) In arriving at the standard net revenue of the amalgamated company for the purpose of adjusting charges under this Act, the Rates Tribunal shall have regard, among other considerations, to the Corporation Profits Tax, if any, paid by that company in the period under review."
I have to apologise to the House for introducing a manuscript Amendment at this stage. I hope the House will give me the benefit it has always accorded to first offenders. When the Corporation Profits Tax was paesed last year, railways were exempted, for a period of years, from the operation of that tax, and my Amendment asks that the Rates Tribunal shall have regard to any Corporation Profits Tax that may have been paid by the company, in arriving at the standard net revenue. The Corporation Profits Tax imposed on railway companies would have a special effect in that it would fall entirely on the ordinary shareholder. It is only fair, as the companies have been exempted for three years, that the exemption should be extended, and that in fixing the net revenue the Rates Tribunal should take this consideration into account. I hope the Government will accept this Amendment.
I beg to second the Amendment. When the Corporation Profits Tax was under discussion, I made a very strong effort to induce the Chancellor to exempt statutory companies for reasons which I then fully explained to the House. The Mover of the Amendment has, if I may say so, understated his case. This tax as applied to a railway company is peculiarly hard on those shareholders who hold shares in particular railways, the ordinary stocks of which have been split. In this case there would be an imposition, which would amount to an enormous percentage on the deferred shares. I previously brought before the Chancellor of the Exchequer, the circumstances in which the railways stood in regard to this, but he deemed it to be impossible for him to allow the exemption for more than a limited number of years. I am bound to say I have not yet seen the Amendment, but I always understand any Amendment proposed to the House by my hon. and gallant Friend. Its object is that when the Rates Tribunal is fixing the standard revenue they shall have regard to this extraordinary and exceptional impost.
This raises a serious question, because if railway companies are to be exempted from this Corporation Tax, what about all other limited companies, and what about the holders of shares in foreign railways, who would not be exempt? They are in the same position in regard to the pressure which falls upon them in connection with this matter, and I cannot see why the investors in English railway companies should have this benefit over the investors in other companies to which it does not apply.
May I say it is not proposed to exempt railway companies. All that is proposed is that the tribunal, when taking into consideration the fixing of the rates, which are to be based as far as practicable on the net revenue of 1913, shall also remember the Corporation Profits Tax. I am not at all sure that the Amendment is necessary, because I should have thought the argument could have been advanced to the Rates Tribunal that they must fix the rates at such a figure as would give the companies the net revenue of 1913, when the Corporation Profits Tax, of course, was not levied.
I take it the Government will accept the Amendment. If I heard it correctly, its effect is to direct the Rates Tribunal so to adjust the rates that the Corporation Profits Tax is passed on to the users of the railways, and, of course, the Minister will accept that, as it is a little bit extra for the railway companies, while I am sure he will have the support of the right hon. Member for Derby (Mr. Thomas), who a ways votes with him on all these matters, in case some people on this side are so misguided as to challenge such an obviously generous course.
In the case of other companies, they can raise their prices to meet the Corporation Profits Tax, but the railway companies cannot.
They do that, do they?
As we now know that the railway companies are only profit-making concerns, and must have all the privileges of capitalist companies, although the right hon. Gentleman has made them into a monopoly, then, of course., those privileges must be given them, and I am sure the Minister will not hesitate to make them this infinitesimal concession. I am sure he will give them this little more. It will, perhaps, be the last straw that will break the camel's back, the camel on this occasion being the unfortunate trader and traveller.
I should be very grateful if my hon. and gallant Friend (Major Hills) would tell me what he is moving.
The right hon. Gentleman has got my copy of the Amendment.
Is it the one beginning, "In arriving at the standard net revenue"?
Yes.
Then I think this would be a most extraordinarily inconvenient thing to do, to vary the standard net revenue, which is a matter arrived at only after very careful consideration, having regard to the incidence of the Corporation Profits Tax. The suggestion, I assume, is that this tax should be a charge as a revenue expense, but to do it by altering the standard net revenue seems to me to be an extraordinarily clumsy way.
10.0 P.M.
I regret it very much if the Government are going to accept this Amendment. What effect would it have in the country, where there are thousands of working men paying the Corporation Profits Tax through the cooperative societies. [HON. MEMBERS: "No, no!"] They pay the tax twice in one form or another. Here is a frank admission that the object of this Amendment is to enable a company to pass on a. tax which is a tax deliberately imposed in order that people should contribute something to the expenses of the War proportionate to their ability so to do, and I think that would have a disastrous effect upon the country. There is no desire on the part of anyone, I feel sure—certainly not on my part—to do an unfair thing to the railway companies, but on the whole I think they are having a fair deal, and I should regret it very much if they were to press this Amendment.
I think the hon. Member who has just sat down must have been absent from the House a few weeks ago when this question was decided, so far as the co-operators were concerned. The Government was then beaten on this very subject of applying this tax to the co-operators, and all of us who voted with my hon. Friend the Member for Linlithgow (Mr. Kidd) upon that occasion to bring the Government to a sense of the iniquity of the Corporation Profits Tax hope we shall have the same Lobby to-night for the assertion of the same principle. After all, consistency is a virtue, and although it may not be very frequently met with in this House, we may occasionally look for the exercise of that virtue. I would point out that the exemption from this tax to the end of this year was not made for railway companies as limited companies, but was given to railway companies as public utility companies, and all public utility companies got the same benefit of exemption, but that ends at the end of this year. I am surprised at my hon. Friend opposite defending a tax of this character. I think if he told us frankly what he thinks of the Corporation Profits Tax his language would be more expressive than Parliamentary, for I do not think be approves of the tax at all. I do not think there are many men in this House who have considered the Corporation Profits Tax who approve of it, and, after .all, all that this Amendment is asking is, not that the exemption which has already been granted to public utility companies to the end of this year shall be continued, but that regard shall be had to that fact. That is not unreasonable, and I hope the House will avail itself of this double opportunity of doing justice to the reasonable demand of the railway companies and also of recording its opinion of a tax which ought never to have been imposed.
To accept this Amendment would be to reduce the proceedings on this Bill to something like a farce. Here is a very complicated Amendment put in in manuscript, and I am sure there must be many hon. Members who really do not know what the Amendment is or where it comes in. I listened with the greatest care while it was being read, but I am in no better position than the Minister himself. The right hon. Gentleman may have reinforced himself since he spoke, and may know where the Amendment comes in, and what it is. So far as I am concerned, and I think many other Members on these benches are concerned, we really do not know where this Amendment comes in. Whether it is simply dealing with Sub-section (4), or whether it is a new Sub-section affecting the whole Bill, I cannot tell. One gathers that it is something which affects the railway companies as a whole, or it may be that it is only dealing with, ancillary companies in Sub-section (4). I do suggest to my hon. and gallant Friend that the best course would be not to press this Amendment now, but to bring it forward in another place. If that cannot be done, it ought to be dropped. Upstairs in Committee, appeals were made to us, from time to time, not to put forward manuscript Amendments. It was obviously impossible for the Committee to deal with them, and it is still more impossible in the House at the present moment. I suggest that the Amendment is not clear, and the clearer it becomes, the more obscure the whole thing is. As to whether we are really dealing here with only a small Sub-section, or whether we are endeavouring to reverse or extend a great financial principle, is not at all apparent to the House, and I hope my hon. and gallant Friend will not press this Amendment.
This Amendment does not mean that the railways are not to be taxed, but what it means is that, in finding out what net revenue should go to the shareholders, this tax should be taken into consideration. I think that whoever has that job will take taxation into consideration, and, therefore, as the right hon. Gentleman said, it is quite unnecessary to put this in. It certainly would be, most inconvenient to put it in here, because the net revenue, as the right hon. Gentleman has pointed out, will be a certain fixed thing made but from the returns and profits of the railway companies, and if you put this in here, it will confuse the whole thing. Why should special attention be called to this particular tax? I do not suppose that, in valuing anyone's property, you would not value a tax that exists on it, and, therefore, it means that there should be special attention given to it, and that the traders and public, and not the shareholders, should bear the expense of this tax. That is the point of the Amendment. Whether the Corporation Profits Tax is just or unjust is another thing. At the present moment, the Government is very hard up for money, and, personally, I am not going to vote to prevent the Government getting any money. In the case of the railway companies, the deferred shareholders will suffer very severely, just as any other companies who have much borrowed capital suffer much more heavily, of course, than companies with a smaller amount of borrowed capital, and it is unfair in that way. But that is common to the whole tax, and the question here is, whether the public or the railway shareholders shall lose on the continuation of this tax, and, as I have represented the public all through in Committee, I shall do so still, and oppose this Amendment.
My hon. and gallant Friend came to speak to me on the Bench to-night, and he handed me the Amendment which he has moved. It is very difficult in dealing with the Bill under the present procedure for anyone to follow an intricate matter of this kind. As I understand it, the railways ask that the Corporation Profits Tax should be imposed upon them, but that, as it was not in operation in 1913, they should be allowed to charge it as revenue expense, and not be obliged to debit it to some other account. I would ask my hon. and gallant Friend, in the circumstances, to leave it for further consideration, to be dealt with on its merits in another place. It is extremely difficult to deal with a matter of this kind now, and do justice to it.
Oh, no.
My hon. and gallant Friend knows no more about it than I do.
Oh, yes, I do.
I am really unable, on behalf of the Government, to say what this means, and I do ask my hon. and gallant Friend, if he desires to have a fair consideration given to this, to drop it now, with the permission of the House, and to have it dealt with in another place.
On the understanding that the matter will be considered as indicated by the right hon. Gentleman, I will ask leave to withdraw the Amendment. I quite recognise that it is rather an unfortunate thing that I should have brought in a manuscript Amendment on such a very important point, and I can only repeat what I said, that although I have moved a good many Amendments, it is the first I have handed in in manuscript.
I object to this Amendment being withdrawn. If the Minister had given way when he referred to me—however, I do not object to that; what I object to, and what I hope other hon. Members will object to, is that this matter of great importance is to be brought up in another place, and put in a Bill, and we shall have a very small chance of objecting to it here. If we do object to it when it comes back, we shall be told that it will mean sitting another two or three days. It is most improper, and I hope we shall take a Division on the Amendment here.
Amendment negatived.
CLAUSE 58.—(Periodical review of standard charges and exceptional rates.)
(1) The Rates Tribunal shall review the standard charges and exceptional rates charged by each amalgamated company or a railway company to which a schedule of standard charges has been applied under the Section in this Act the marginal note whereof is "Application of schedules to non-amalgamated companies" at the end of the first complete financial year after the appointed day, or if the appointed day 16 the first day of January in any year at the end of that year, and, unless directions are given by the Minister to the contrary in manner hereinafter appearing, at the end of each succeeding year, and the review shall be made on the experience of the operation of those charges and rates for the period during which the standard charges have been in operation, or, if that period is more than three years, then on the experience of the operation of those charges and rates during the preceding three years.
(2) The Minister may direct as respects any year after the third annual review that a review shall not be held, and the directions may extend either to all the amalgamated companies or railway companies as aforesaid or to any one or more of those companies:
Provided that no such direction shall extend to any company which has applied to the Minister for a review, or in respect of which the Board of Trade on the application of any representative body of traders have requested that a review shall be held.
(3) If on any such review the Rates Tribunal find that the net revenue or the average annual net revenue obtained, or which could with efficient and economic management have been obtained, by the company during the period on the experience of which the review is based is substantially in excess of the standard revenue of the company, with such allowance (if any) as appears to the tribunal necessary to remunerate adequately any additional capital which may have been raised or provided in respect of expenditure on capital account incurred since the date upon which the standard charges were fixed in the first instance, the tribunal shall, unless they are of opinion that owing to change in circumstances the excess is not likely to continue, modify all or any of the standard charges and make a corresponding general modification of the exceptional rates charged by the company so as to effect a reduction of the net revenue of the company in subsequent years to an extent equivalent to eighty per cent. of such excess:
Provided that the tribunal in making such modifications as aforesaid as respects one amalgamated company shall so far as practicable avoid making such modifications as would be likely to affect prejudicially the financial position of another amalgamated company or railway company as a foresaid.
(4) If on any such review the Rates Tribunal find that the net revenue or the average annual net revenue obtained by the company during the period on the experience of which the review is based is less than the standard revenue of the company, with such allowance (if any) as appears to the tribunal necessary to remunerate adequately any additional capital which may have been raised or provided in respect of expenditure on capital account incurred since the date upon which the standard charges were fixed in the first instance, and that the deficiency is not due to lack of efficiency or economy in the management, the tribunal shall, unless in their opinion owing to change of circumstances the deficiency is not likely to continue, make such modifications in all or any of the standard charges and such a corresponding general modification of the exceptional rates charged by the company as they may think necessary to enable the company to earn the standard revenue with such allowance (if any) as aforesaid:
Provided that no such modifications of the standard charges shall be made as will increase any of those charges beyond the limit imposed in pursuance of the provisions of this Part of this Act.
(5) Whenever on any such review such an excess as aforesaid is found, then, for the purposes of subsequent reviews, Subsection (3) of this Section shall have effect as if for the standard revenue there were substituted a sum (hereinafter referred to as the "increased standard") equal to the standard revenue with the addition of twenty per cent, of such excess, and whenever on any such subsequent review an excess is found above the increased standard together with the allowance (if any) for additional capital, then, for the purpose of subsequent reviews, the increased standard shall be increased by a sum equal to twenty per cent. of such excess, and so on:
Provided that if at any time after such an excess has been found the standard charges and exceptional rates are modified in pursuance of Sub-section (4) of this Section on account of a deficiency no such substitution shall be made until an excess above the standard revenue together with the allowance (if any) for additional capital is again found.
(6) Subject as aforesaid, the Rates Tribunal, when modifying charges, on any such review, shall have regard to the like considerations as when fixing charges in the first instance.
(7) The modifications of standard charges and exceptional rates made in pursuance of this Section shall take effect as from the first day of July in the year following the last year under review or such other date as the Rates Tribunal may fix.
Amendment made: In Sub-section (1), leave out the words "rates charged by," and insert instead thereof the words "charges of."—[ Mr. Neal. ]
I beg to move, in Subsection (1), to leave out the words
"or a railway company to which a schedule of standard charges has been applied under the Section in this Act the marginal note whereof is 'Application of schedules to non-amalgamated companies.' "
In Committee, an Amendment was carried to apply the procedure of the Clause to railway companies, which are mentioned in the words I propose to leave out. The Amendment was carried in Committee against the advice of the Government by 19 to 12 votes. I cannot help thinking there was some little misunderstanding, possibly my fault. Clause 58, which is a very material Clause, is complementary to Clause 57. The latter Clause is included to arrive at a standard revenue before amalgamation. Clause 58 is to arrive at a revised standard of revenue on annual revision. The real material fact is that the two Clauses are in the Bill for the purpose of arriving at a standard revenue. There are the companies which are very much smaller in size but very much larger in number—I am told there are 60 of them—and there are only four amalgamated companies. The Rates Tribunal will have a vast volume of work cast upon it under this Bill, and amongst its duties will be a revision of the charges of the amalgamated companies. If, however, you are to add to that, that they are also to seek to review the standard charges of 60 smaller companies, you are going to put upon them an impossible task and for an impossible purpose; because the only object of revision being to arrive at a standard revenue, it is quite inappropriate to apply that to companies which have no standard revenue applied to them under the Bill. I therefore ask the House to reconsider the matter with which the Committee dealt. I said before, and say again in all sincerity, I am afraid it was my fault through having dealt a little too briefly with the matter in Committee that the misapprehension arose.
I am not quite sure what will be the effect of leaving out these words. I should like to ask the Parliamentary Secretary whether the leaving out of these words would not apply the Clause to the Cheshire Lines Committee which is, as far as I know, not among the amalgamated companies. If it does not apply to the Cheshire Lines Committee—and I am inclined to think it does—what will be the position of that committee controlling a most important line, 120 miles long, and with very large traffic, if at the end of the first complete financial year it is found either that the rates have not brought in the revenue which they did in 1913 or that they have exceeded the revenue of 1913? If they have exceeded the revenue of 1913 the Cheshire Lines Committee will, I gather, gain. If they have not come up to the limit of 1913 then the Cheshire Lines Committee will lose. I want to know whether, if that is so, it is right to leave out these words. I think it is possible that the Government might have forgotten the Cheshire Lines Committee—
If it would be convenient to the right hon. Baronet and the House I should be glad to answer that at once. The Cheshire Lines Committee is one of those which will have applied to it the schedule of charges in Clause 32 of the Bill ( Application of Schedules to non-amalgamated companies ). That Clause says:
"The Rates Tribunal shall apply to each such company the schedule of charges of such one of the amalgamated companies as, after giving the company in question and all other parties whom they consider to be entitled to be heard before them an opportunity of being heard, appears to the tribunal to be most appropriate to the case of that company …"
They have applied to them the Schedule of one of the amalgamated companies. Under Clause 34 it is provided that
"Any amalgamated company or any railway company to which a schedule of standard charges ha6 been applied, or any representative body of traders or any person who may obtain a certificate from the Board of Trade that he is, in the opinion of the Board of Trade, a proper person, shall be entitled at any time to apply to the Rates Tribunal to modify the standard charges."
That gives the power of varying the charges established under Clause 34 and not Clause 58.
But there is power to apply to the Rates Tribunal to vary the charges. This Amendment now before us is to leave out the words:
"or a railway company to which a schedule of cstandard charges has been applied under the Section of this Act."
Here comes in a legal question. If these words are left out, could it not be held that as these words were not put in, they were not meant to be put in, and they would not be able to vary the charges?
That would not be so. The whole object of Clause 58 is to arrive at a revised standard revenue. There being no standard revenue applied to the Cheshire Lines, it is inappropriate in Clause 58 to mention it. The whole procedure comes under Clause 32 and 34.
Amendment agreed to.
I beg to move in Sub-section (1) to leave out the words: way companies in the future should feel that it is up to them to manage their concerns so economically and so efficiently that they will yield a profit to their shareholders as well as serve the community. The right hon. Gentleman the Member for Derby (Mr. Thomas) on a previous Amendment suggested that there was a certain measure of hostility on the part of those taking this line to the Bill, to the dividends which the shareholders receive, and possibly to wages. I can assure the House that that is furthest from the minds of those who support Amendments of this nature. There are two ways of getting revenue; some seek to raise it by increasing their charges and rates on a small turnover. On the other hand, you may seek to get revenue by administering a concern in an efficient way, by extending facilities, by an enlargement of your trade area, by the efficiency of your services, by the excellence of your facilities, and by getting the smallest possible profit on a large turnover. These are two fundamental principles of raising money. Big rates on a small turnover, or smaller profits by seeking to extend facilities. This Amendment leaves it free for the Rates Tribunal to get back, if it so desires, to the principle we are accustomed to whereby shareholders get that which is earned. I submit that that is the only sound process upon which to act. If the railway companies feel that they have to raise their charges in order to get a certain guaranteed income it does not make for efficiency in service or for advantage to the country. On the other hand, we want to see them back in the pre-War position so that they shall be judged by the efficiency of their service, and the facilities which they offer when revenue and income rise.
I submit that the only way to get down our railway charges is not by curtailing wages, but by giving increased facilities, and by so increasing the facilities that the overcharges may be less. As has been said, the one crying need of the moment is to get down charges. Take what occurs in my own particular district. The railway charges on the manufacture of iron amount to from 15 per cent, to 20 per cent, of the total cost of the iron, and it is impossible for us to enter into the world competition satisfactorily, as is so desirable in the interests of the trade of this country, while those charges remain so high. I submit the freedom and elasticity which this Amendment seeks to give the Rates Tribunal will be a safeguard for securing a really efficient service. The railways will get what they earn and not be guaranteed something, no matter how restricted their service or how high their rates. This is not a move in a spirit hostile to the Bill, or to the directors, or to the wage-earners, but it is put before the House as being the sounder way of securing the same end. You have to raise a certain revenue. Are you going to leave it to the railway company to develop to the best of its ability, or are you going to say, "We will guarantee you a fixed return; it does not matter how little your turnover is"? The latter course gives them no incentive.
I beg to second the Amendment.
I cannot conceal my surprise that this Amendment should be moved in the assumed interest of traders. I could understand its being moved in the interest of anyone rather than of them. It is, in fact, destructive of Clause 58. Clause 57 prescribes a standard revenue, and Clause 58 provides for its modification, in the hope that traders may thereby get promptly the benefit of the economies which it is designed to effect by amalgamation. In order to secure to them the benefit of those economies, the Clause provides that there shall be at least three annual revisions—that is to say, revisions which would take place, presumably, about the years 1926, 1927, and 1928—and later revisions, if it be found necessary to make them. In addition to that, the traders have the fullest possible protection—very much wider, and, if I may say so; very much better than anything that is proposed in this Amendment—in Clause 34 of the Bill. In that Clause provision is made whereby representative bodies of traders may at any time—that is to say, without waiting for the appointed day—apply to the Rates Tribunal to modify the standard charges or any of them. So far as the traders' interests are concerned in this matter, they are fully protected, as we suggest, by Clause 34, under which the traders themselves take the initiative; and, in order to provide for the possibility of that initiative not being exercised, Clause 58 provides for specific and definite revisions for at least three years.
Sub-section (3) in this Amendment suggests something which also, I submit, is quite impossible. The Rates Tribunal, being charged with the duty of investigating very large numbers of rates and charges, of hearing evidence on those matters, and of seeing which of those charges operate to the advantage of the trader and which do not, are then to be told that the charges and modifications which they make are to be laid before this House, and are only to become operative if and when they are confirmed by Parliament. I really cannot imagine that that is done in the interests of traders, and I should be very much surprised if any representative trader, or anyone who represents a large body of traders, attaches importance to this Amendment.
Amendment negatived.
Amendments made: In Sub-section (1), leave out the words "and rates" ["charges and rates for the period during which the standard charges"]. Mr. Neal. ]
I beg to move, in Sub-section (3), to leave out the word "could" ["or which could with efficient and economic management"], and to insert instead thereof the word "would." This is really a drafting Amendment.
It is, if I may say so, really a very small drafting Amendment, and we do not think that it is an improvement. The Subjection as it stands reads:
"If on any such review the Rates Tribunal find that the net revenue or the average annual net revenue obtained, or which could with efficient and economic management have been obtained,"
and so on; and I suggest that that is much better than the amended form proposed by the right hon. Baronet.
Amendment negatived.
Further Amendment made: In Subsection (3), leave out the words "rates charged by" ["general modification of the exceptional rates charged by the company"], and insert instead thereof the words "charges of."—[ Sir E. Geddes. ]
I beg to move, in Subsection (3), to leave out the words "eighty per cent, of such excess," and to insert instead thereof the words
"one hundred per cent, of any part of such excess which the tribunal considers to have been due to a decrease in rates of wages or in prices of commodities, or other items of working cost beyond the control of the company, and sixty-six and two-thirds per cent, of any part of such excess which the tribunal considers to have been due to other causes."
I am quite conscious that this Amendment will not perhaps commend itself to hon. Members who represent the railway interests, and I am rather doubtful if it will commend itself to the Minister of Transport; but it embodies a very important principle, and that is the question whether the economies effected in the reduction of working costs, wages, prices of materials—that is to say, reductions outside the control of the company itself—should not redound to the advantage of the traders. I think the Minister himself admitted this principle, but pointed out its impracticability. There can be no objection urged against it, but as most businesses have very little difficulty in analysing their costs, I do not think it would be impossible for railway companies to make a complete analysie of their costs. We are quite prepared to concede to the railway companies that in bad times they should have the right to recoup themselves for the losses they sustain. I contend that the public should get the full benefit of the fall in the prices of material and rates of wages, as in the case of other industries, and if all these items increase in the future I am equally prepared to concede that the railway companies ought to be able to recoup themselves, and the increase in net revenue arising from other sources, that is to say, the economies of amalgamation, increased traffic and so forth, should be divided, part going to the railways and a part going to the travelling public. I thought possibly the Amendment might commend itself to the House if some proviso of this nature were added to it.
"Provided that if the company can satisfy the tribunal that any portion of such excess due to a decrease in items of working costs as aforesaid has been caused in whole or in part by the action of the company the standard charges and exceptional rates shall be modified in respect of such portion so as to effect a reduction of standard revenue to an extent equivalent only to 66⅔ per cent, of such portion which the tribunal may consider to be so caused."
That is rather a complicated provision to add to the Amendment, but the whole-question is an exceptionally complicated one and all I am pleading for is that the reductions which will be brought about in the course of the next few years, before the appointed date set forth in the Bill, ought to go to the advantage of the trading community. I was quite prepared this evening to make a concession to my hon. Friends respecting the railways in regard to economies by speeding up in preparing for the appointed day, and I hope that the Minister and the representatives of the railway interests will take cognisance of the principle which I am trying to assert in this Amendment, and meet us as fairly as they can.
I noted the closing words of my hon. Friend. He said that the reduction in the next few years ought to go to the advantage of the trading community. He summarised his argument in those words. The years 1921–25 may be taken as a fair interpretation of "the next few years." The whole advantage, unless under the Amendment just passed the railway companies can prove that they were anticipating economies as a result of amalgamation, goes to the traders under the Bill as it stands. Therefore, as my hon. Friend summarised his case, it is amply met by the Bill, if he will concede to me that the years 1921–25 are " the next few years." He has everything that he wants for the next few years. He proposes that the fall in the cost of labour—I am glad the hon. Member for Dudley (Mr. J. Wilson) is present—and the fall in the cost of materials shall not go to the railways. The cost of labour and materials is far more than 50 per cent. The expenditure of the railways covered by materials and labour is 85 per cent. My hon. Friend's Amendment deals with labour and materials, which represent 85 per cent, of the total expenditure of the railways, and he says that in respect of material the fall in the cost must be given to the trader. That would give no incentive to the railway companies to purchase well, to use cheap materials instead of costly materials, to put steel tubes instead of copper tubes in their boilers. It would give them no induce- ment whatever to economise in labour. The hon. Member says that the fall in the cost of labour is not to accrue to the railways. I know quite well that there are certain theorists who are ready to advise anybody and everybody on this matter. They say it is perfectly simple to get an index figure and to put the cost of labour on that. I defy him to separate wages from any index figure. The wages bill includes three things—the wages paid to the worker, the hours that the worker works, and the management that prevents the waste of time, which my hon. Friend so eloquently told us about upstairs from his own experience, and enables economy to be exercised in the utilisation of the hours of work, not only of the clerk, the driver and the signalman, but of every man employed in the movement of traffic. My hon. Friend takes all that advantage away from the railways. It is 85 per cent. of the expenditure.
This Amendment leaves to the railways no incentive to improve. It takes away between 80 and 90 per cent. of the expenditure and says, "You have nothing to do with economies on that." If we are going to adopt this principle at all, we have got to spread our net wider. We have got to look at this, not from the theoretical, but from the practical point of view. If you expect the railways to economise, give them an incentive in the direction of economy in everything which they can influence. Give them an incentive to purchase cheaply, and not to reduce wages, but to get what every honest Labour representative in this House wants—an honest day's work for an honest day's pay. We may differ as to whether 20 per cent, is enough or not, but I do implore the House not to spoil the position by cutting out more than 80 per cent, of the expenditure and saying to the railways, "The savings on these are of no account to you. The whole benefit will go to the traders." I am glad that we have had even this short Debate. I was afraid that this Clause might pass without Debate, and I am glad that we have had the opportunity of pointing out that the effect of this proposal would be to take away from the railway companies all incentive to economy as regards between 80 and 90 per cent, of the expenditure.
There is something more than the very powerful argument which has been used by the right hon. Gentleman. As the bill stands what is left to the railway shareholders? Suppose that the Rates Tribunal is able to fix such rates as will produce the 1913 revenue, and suppose that the trade is there, and that the rates do not kill it, which is not impossible, and that the 1913 revenue is produced what the shareholders get is 4¼ per cent, on their capital. How many traders are prepared to accept 4¼ per cent, on their capital? What is the encouragement to the railway companies to manage their affairs well if they can only earn that very meagre amount, and if 80 per cent, of the economies are to go to the trader and only 20 per cent. to the shareholders? Yet the hon. Gentleman is not content with taking 80 per cent. of the savings to which he has not contributed, but wants to take all of them. The right hon. Gentleman has said that the decrease in rates of wages or in prices of commodities or other items of working cost beyond the control of the company comes to 85 per cent., of course, I accept his figures, but let me point out that if this Amendment were carried there would be no means of making any economies at all, because the whole of the economies are included in these items which the hon. Gentleman wished to add. The only other possible economy is dismissal of staff. If the staff be dismissed owing to amalgamation, it has to be compensated. Where on earth can any savings be made at all? The effect of the Amendment would be that if any savings were made at all the traders would take the whole of them. The traders are not doing well in making such a proposition to-day. It does not show any wish to meet the situation in a fair and proper manner. They would be the first people to cry out if they were limited to 4¼ per cent., and, in common fairness, they might allow the small modicum which is left to the shareholders to remain in the Bill.
Amendment negatived.
I beg to move in Sub-Section (3), to leave out the words "another amalgamated company or railway company as aforesaid," and to insert instead thereof the words "any other railway company."
The Clause as originally drawn provided that on fixing and modifying the charges for one amalgamated company the Tribunal was to endeavour, so far as possible, not to prejudice the position of a neighbouring amalgamated company. In Committee words were added providing that the tribunal should also favourably consider the position of a company in amalgamation, but in which the schedule of charges had been fixed under Subsection (2). I see no reason why the provision that the tribunal should not prejudice the position in fixing the charges should not be extended to other railway companies.
Amendment agreed to.
Further Amendment made: In Subsection (4) leave out the words "rates charged by" ["exceptional rates charged by the company"], and insert instead thereof the words "charges of."—[ Mr. Neal. ]
I beg to move, at the end of Sub-section (6), to insert the words
"Provided also that Subjections (3), (4), and (5) of this Section shall not apply to any review held after the expiration of five years from the appointed day."
The Minister of Transport admitted to-day that this scheme was necessarily of a temporary nature, and could not be fixed for all time. This Amendment seeks to limit to five years some of the forms which we are seeking to stereotype in this Bill.
I hope my hon. Friend will not press this Amendment, because its effect would be to stabilise the standard revenue after five years. I do not think the standard revenue will become stabilised in five years by any means. The hon. Member quoted something I said earlier in the evening. I did say that the substitution of the flexible maximum for the statutory maximum might not obtain for many years. I first of all said "for all time," and I said then "after five or ten years." But that is no reason why we should limit the operation of the Act to five years. In this respect I certainly hope it will last longer than five years. If it does not, it means that after five years we have reached a level where the rates cannot go down any further, and I do not believe that that will be so. I believe that for ten years rates will continue to fall, and I say that after consideration of the matter.
Amendment negatived.
Further Amendment made: In Subsection (7) leave out the word "rates" ["exceptional rates made in"], and insert instead thereof the word "charges."—[ Mr. Neal. ]
Ordered, "That further consideration of the Bill, as amended, be now adjourned."—[ Sir E. Geddes. ]
Bill, as amended ( in Standing Committee A and in Standing Committee B ) to be further considered upon Monday next.
Private Business
TAF FECHAN WATER SUPPLY BILL [Lords]
Order for Second Reading read.
Motion made, and Question proposed, "That the Bill be now read a Second time,"
11.0 P.M.
I am sorry that it is necessary to delay the House for a few minutes to talk about water, because I know hon. Members want to get on to something more substantial. I ask the assistance of the House in a matter of considerable principle; otherwise I would not intervene on the Second Reading. I am afraid that if something cannot be done in the meantime, I shall be forced to occupy the time of the House next week with a series of Amendments. For the moment I want to put to the House the broad principle of what is happening. I want to get some assistance from the Chairman of Ways and Means, because of the new precedent in regard to water supply which has been set in this particular case. The Merthyr Corporation has had a substantial waterworks of its own since 1852, and that waterworks has been so satisfactory that the citizens have had their water at 4d. per 1,000 gallons. Other authorities round about, particularly in the thirsty country of Monmouthshire, have tried to get water from the same area. The fact of other authorities wanting water made it necessary that something should be done, and the Merthyr Corporation has introduced several Bills, and other authorities have introduced Bills, with the result that the Committee, with several Bills before them, has allowed these other Monmouthshire authorities to take Merthyr's waterworks. Merthyr Corporation is going to be unique in the history of the country, as providing a case wherein a substantial corporation has been deprived of its waterworks and left without a waterworks of its own. Several authorities wanting water have been sitting on the fence, to see if they would get better terms out of the Monmouthshire authorities or out of Merthyr. Finding that they could make better terms with the persons who confiscated Merthyr waterworks than with the original owners, they have thrown in their lot with the newcomers.
I submit that in a case of that kind where a corporation is losing its waterworks which have been its own for years, exceptional care should be taken in scrutinising the terms on which it is being done. It is in the hope that there will be some reconsideration of these terms, and that I shall be able to get, on this new precedent, some assistance from the Chairman of Ways and Means, that I am going to conclude my remarks to-night; and I hope that it will be unnecessary for me to bother the House with a detailed statement upon it at the next stage of the Bill.
I am glad to understand from the hon. Member for Merthyr (Sir Edgar Jones), that he does not oppose the Second Reading of this Bill. Had he done so, it would have been my duty to put it to the House, that the Second Reading should be given. Parliament, last year, under the Merthyr Corporation Act, practically decided the point that some Bill was necessary, and that being once granted, the question resolved itself into a matter of terms. Of course, that is an issue which I cannot pre-judge. Whether or not the authorities concerned will be able to come to an agreement, before the Report stage, I cannot say, but, at any rate, what I can do is to allow them adequate time in case they are able to do so. If the Second Reading is allowed to-night, I propose to put this Bill down, in its next stage, for Monday next, in the hope that some terms may be arranged. If terms cannot be arranged, the parties will be no worse off than they are now, and adequate time will have been given for negotiations meanwhile. I, therefore, trust the Second Reading will not be further postponed.
We accept at once the promise made by the hon. Member for Merthyr not to oppose the Second Reading. All I ask is that the House will suspend judgment. We are not afraid of the revelations that are going to be made on Monday next, and whatever the hon. Member has to say with regard to the claims of Merthyr, I am sure the House will see that there were very good and practical reasons for the decision arrived at by the Joint Committee upstairs.
Question, "That the Bill be now read a Second time," put, and agreed to.
Bill read a Second time.
I beg to move
"That the Standing Orders relative to the Committal stage of Private Bills be suspended, and that the Bill be ordered to lie upon the Table."
I make this Motion because this Bill has been already before a Joint Committee of both Houses, and therefore it will not have to undergo the usual Committee stage in this House.
Question put, and agreed to.
Ordered, that the Bill do lie upon the Table.
Licensing (No. 2) Bill
As amended ( in the Standing Committee ), considered.
NEW CLAUSE.—(Certain liquor not to be treated as an intoxicating liquor if excise licence not required for its sale.)
"If, under the laws relating to the excise for the time being in force, any liquor, being liquor to which this Section applies, may be sold, whether wholesale or by retail, without an excise licence, that liquor shall not be deemed to be beer or an intoxicating liquor within the meaning of The Licensing Act, 1910, or to be beer or an excisable liquor within the meaning of The Licensing (Scotland) Act, 1903.
The liquor to which this Section applies is any liquor which, whether made on the licensed premises of a brewer of beer for sale or elsewhere, is found, on analysis of a sample thereof at any time, to be of an original gravity not exceeding one thousand and sixteen degrees and to contain not more than two per cent, of proof spirit."—[ Sir G. Younger." ]
Brought up, and read the First time.
I beg to move, " That the Clause be read a Second time."
The situation is rather a peculiar one. At the present moment any liquor made at a brewery, although it is under a certain very low gravity, cannot be sold at any house which does not have a justices' licence and an Excise licence, and the proposal is to put that right. You can make that low-gravity beer if you like, but you cannot make it at a brewery and sell it in a retail house without a licence. By this Clause you get rid of the necessity of having a justices' licence, and it is intended in the next Finance or Revenue Bill to propose a similar Clause which would exempt such liquor from the necessity of having an Excise licence. No change can be made under this particular Clause, and a similar Amendment will have to be made in a Finance or Revenue Bill before it can become effective.
There are only one or two words I need to say with regard to this new Clause. It is quite outside the original scope of the Bill, but, speaking for myself, I see no objection to it. On the contrary, I think that the making of light beers should rather be encouraged; and, in regard to 2 per cent, proof spirit, I do not know if hon. Members recollect that some years ago, in 1908, a question was put to the then Chancellor of the Exchequer as to the amount of proof spirit there was in certain samples of herb beer and other beverages sold as temperance drinks. The samples were analysed, and the result was to show that there was no less than 8 per cent, in a sample of ginger beer, 9 per cent, in another sample of ginger beer, 10 per cent, in some herb beer, and 12 per cent, in some dandelion stout.
Could they sell those liquors without a licence?
I believe they were so sold, and I think that even the most susceptible Members of the House will not be terrified by this 2 per cent, of proof spirit.
On a point of Order. This Clause proposes to give a new definition of excisable liquor. Excisable liquor, as I understand it, is defined by the Customs and Inland Revenue Act, 1885. The Title of this Bill is
"to amend the law relating to the sale and supply of intoxicating liquor, and for purposes in connection therewith."
I submit that this Clause is outside the scope of the Bill.
May I say that the expression in the Scottish Act is "excisable liquor," and not "intoxicating liquor"?
This is intoxicating liquor, too.
It does not intoxicate a Scot.
I do not think that this amends the law of Excise.
It gives a new definition to the term "excisable liquor."
We had better hear the Attorney-General on this point.
With great respect, I think the view just expressed by Mr. Speaker is the correct view. It is quite true, as my hon. Friend suggested, that this change will not be complete in itself. It will involve a supplementary change in another Bill.
The last sentence of the learned Attorney-General, if I caught it correctly, substantiates the point of Order raised by my hon. and gallant Friend, namely, that if this be carried, it will require an Amendment in some other Bill, which is an Excise Bill. Surely that completely answers the case which the learned Attorney-General put.
On the point of Order. It does not require an Amendment of another Bill. This Bill gets rid of the necessity of having justices' licences to sell this drink. The other Bill disposes of the matter by not requiring an excise licence also. This is no doubt a partial operation in one sense, but it is an entire operation in the other.
Question put, and agreed to.
Clause read a Second time, and added to the Bill.
CLAUSE 1.—(Permitted hours on week days.)
(1) The hours during which intoxicating liquor may be sold or supplied on week days in-any licensed premises or club, for consumption either on or off the premises, shall be as follows, that is to say: a maximum of eight hours and a minimum of seven hours, beginning not earlier than eleven in the morning and ending not later than ten at night, with a break of at least two hours after twelve (noon): Provided that—
( a ) in the application of this provision to the metropolis "nine" shall be substituted for "eight," and "eleven at night" shall be substituted for "ten at night"; and
( b ) the licensing justices for any licensing district outside the metropolis may by order, if satisfied that the special requirements of the district render it desirable, make, as respects their district, either or both of the following directions—
(i) that this provision shall have effect as though "eight and a half" were substituted for "eight" and "half-past ten at night" were substituted for ten at night"; or
(ii) that this provision shall have effect as though some hour specified in the order earlier than eleven, but not earlier than nine, in the morning were substituted for "eleven in the morning."
(2) Subject to the foregoing provisions, the permitted hours on week days shall be such as may be fixed, in the case of licensed premises by order of the licensing justices of the licensing district, and in the case of a club in accordance with the rules of the club:
Provided that, pending any decision under this Sub-section, the permitted hours on week days shall be—
( a ) in the metropolis, the hours between half-past eleven in the morning and three in the afternoon, and between half-past five in the afternoon and eleven at night; and
( b ) elsewhere, the hours between half-past eleven in the morning and three in the afternoon, and between half-past five in the afternoon and ten at night.
I beg to move, in Sub-section (1), to leave out the words "a maximum of."
I was wondering whether it would be possible to discuss this and the next Amendment together, as they are dovetailed.
I think the decision on the first Amendment will cover the two Amendments.
I hope the House will accept my Amendment. I think it will be the means of removing many anomalies. I could give several illustrations, but I will give a particular one. I represent part of the borough of West Ham. On the other side of the road is East Ham. Under this Clause there are two licensing authorities. The one may fix the hours at eight and the other at seven, the West Ham public-houses being open till 10 p.m. and the East Ham till 9 p.m. The result will be that men will walk across the street at 9 o'clock and overcrowd the public-houses there. It will be very much better to have a universal eight hours in the provinces, for not only will it save creating an anomaly so far as East and West Ham are concerned, but it will save it in many other parts of the country. In the interests of temperance it is very much better that the houses should be open eight hours instead of a maximum of eight and a minimum of seven. [Hon. Members: "Agreed!" and "No!"]
My hon. Friend who has just spoken seems to have forgotten what has gone before. Let me remind him and the House of it. The original proposals of last autumn were different from these, and no small part of the criticism that was directed against the earlier Bill on its introduction was that it was lacking in elasticity. It was said to me, not by one or two, but by a large number of Members of the House, that the proper course was not to fix and stereotype a universal table of hours, but to fix a maximum number and the latest hour, and then within the limits of that maximum to leave the matter to the discretion of the several justices, with their knowledge of the requirements of the different localities. At the first sitting of the Round Table Conference—as it has come to be called—the very first problem to which we addressed ourselves was the problem of the maximum number of hours and the subsidiary problem connected with it of the latest hour. The proposal which was contained in the Bill represented the decision of the Conference. When the Bill got upstairs it was pointed out that although elasticity was given, too much elasticity might prove to be an evil, and that a fair accompaniment of the provision fixing a maximum was a further provision fixing a minimum number of hours. That step was accordingly taken, and that which is now in the Bill, a maximum of eight hours and a minimum of seven, represents the decision of the Committee upstairs acting, and acting loyally, on the recommendations of the Round Table Conference. Now I quite recognise, and it may be said, that the Committee upstairs, when it inserted the minimum numbers of hours for weekdays, omitted to make similar provision for Sunday. I say at once that when we come to that part of the Bill which deals with the hours on Sundays, if it is the general sense of the House, I shall be prepared to speak no longer of a maximum of five hours, but to make five hours the fixed standard. But I ask the House to pause and consider well before it rejects the proposal we are discussing as it stands. I need not remind the House that, according to our hopes and intentions, this is in substance an agreed Bill. [HON. MEMBERS: "No!"] I say in substance. There may be those who differ as to this detail or that, but I ask them to remember that after all it is not my responsibility. I can only point out that this Bill as it stands, whatever its merits or demerits, represents long labour and careful thought. It is a system of balances and a bundle of compromises, and if you are going to disturb those compromises or upset that balance in one quarter, you run the risk of upsetting the rest of the Bill. I beg the House, before it commits itself to a certain attitude upon the present proposal, to remember how this compromise was brought about and how much may depend upon it.
I do not accept the statement just made by the Attorney-General. As a matter of fact, at the Round Table Conference I am under the impression that there was an understanding that the licensing bench would have no interference with the question of hours. I felt myself that the hours were too small, but I tried to be resonable, and in order to meet the temperance advocates I would agree provided this point was stated in the Bill. The Attorney-General says that this Bill is a bundle of compromises, but where do they come in? As a matter of fact you have in this Bill a number of War-time restrictions, and this compromise has not been made with the approval of the great volume of opinion outside, known as moderate drinkers. They are going to have their liberties restricted under a Statute in which there is no elasticity and their representatives have not been listened to by those who are behind this Bill. If this Measure becomes law as it stands I believe that it will do more harm to the temperance cause than any Bill I have ever heard discussed in the House of Commons. What we are aiming at in this Amendment is to get definite hours fixed in the Bill. The Attorney-General has said complaints have been made of a want of elasticity, because, may I suggest, with all respect, he is referring to legal elasticity? You are dealing here with a maximum and a minimum, and you have elasticity within given limits. It is quite possible for the word "maximum" to remain in the Bill, and then for a; bench of local licensing justices to declare that they will come down to the seven hours' minimum. I have tried to persuade many of my constituents in the West Riding of Yorkshire that they ought to be satisfied with eight hours for the Provinces. They want twelve hours. I am not prepared to back that claim at all, provided you strike out the words "maximum of eight hours and minimum of seven hours." I want the House to declare what the hours of opening shall be within the limits of a. certain number of hours, and then 1 shall be satisfied.
Next I want to point out to the House that at the Round Table Conference there was no absolute agreement at all. I took care to notify the Attorney-General at the close of that Conference that I was not satisfied with the Bill and would take action on the floor of the House of Commons to contest it. Further than that, the Attorney-General has put things into the Bill which were not even discussed at the Round Table Conference. We have some Amendments down in regard to points which I hope to prove were never debated at the Conference. There are things incorporated in the Bill which were never considered there. I submit, under these circumstances, that if the Government will take the Whips off, the House may be trusted to come to an equitable decision on these matters. My concluding words are addressed to those who have been engaged all their lives in what they consider to be temperance reform. I respect their convictions, but I warn them not to drive too hard a bargain, because the inevitable effect will be discontent in the country, and some future Government will be forced to undertake legislation very much contrary to the wishes of these hon. Members and to their propaganda.
I sincerely trust that the Debate at this late hour of the evening will be conducted in the spirit of compromise with which the Attorney-General opened it. As representing another division of West Ham, I strongly support the proposition of the hon. Member for the Plaistow Division of West Ham (Mr. W. Thorne). We are told that this is a compromise Bill — an agreed Bill. I have taken the trouble to speak to several members of the Round Table Conference, and they have assured me that there was no compromise on the proposal embodied in the Bill of a maximum of eight hours and a minimum of seven hours for the provinces. Under these circumstances what is a compromise? If this is put forward as a compromise how can the term be justified? Under the War-time Regulations the opening hours in the provinces numbered six and a half, and therefore if the justices so determine the so-called compromise will merely mean an extra half-hour opening a day in the provinces. In pre-War days houses were often open for 16 to 17 out of the 24. No one desires to go back to those hours. We wish to deal with this matter in a spirit of compromise. To allow the justices merely to add half-an-hour to the facilities for the public is in my humble judgment no compromise at all. I venture to suggest to the House it would be most undesirable and unedifying if at every annual Brewster Sessions there should be a wrangle amongst the justices as to whether the hours of opening should be eight or seven and that round robins should be circulated in order to influence them.
It is absurd to suggest that the restriction of hours can in any way conduce to temperance. The figures show that taking the War years, 1915 to 1918 inclusive, the fall in convictions for drunkenness in controlled areas was 77.97, and in uncontrolled areas 73.68; and I do not suppose that any statistician will base any argument upon those figures. I also venture to suggest that, if the hours are unduly shortened, it leads to that sort of rush drinking—the desire to get a drink at all hazards—which this War-time legislation has so largely encouraged. Many people who are not drunkards, although they are moderate drinkers, have, owing to this legislation, taken drinks as soon as the mystic hour of six has struck who never would have thought of it in pre-War times. It is well known, also, that before this Round Table Conference met, the Liquor Control Board themselves, as was publicly advertised, had intended to increase the hours of drinking. That being so, I only wish to say two other words. I suggest that this is an attempt to introduce local option by a side-wind; and I further suggest that there has been too much talk, in connection with this temperance legislation, about the teetotal party—who falsely call themselves the temperance party—on the one side and the trade on the other. This is not a question either for teetotalers, who abhor alcohol, or for the trade, who want to sell it. It is a question for the general public; and to say that the general public may not have eight hours in the day in which they may consume alcohol is, I suggest, not compromise, but tyranny.
I agree with the concluding observation of my hon. Friend that the people whom we have most to consider in this matter are the great mass of the general public, who are reasonable users of the facilities which are open to them. For myself, I shall follow the course recommended by my right hon. and learned Friend the Attorney-General. I shall do that because I believe that in so doing I shall have afforded sufficient facilities to meet the wishes and the needs of that great mass of the users of these licensed premises.
But this is a Bill which was framed, if I may say so, not by the Government, but by a Conference of this House, and subsequently by a Committee of this House. It is a Bill which, for its chances of success, depends upon the good will and the general approval of the House, and this is not a matter upon which my right hon. and learned Friend or I think that we ought to enforce, or attempt to enforce, a particular solution by the use of the Whips. We shall leave the decision of the question to the free vote of the House. I am sure that to give that latitude to the House is the only possible way of conducting to a successful issue, within the limit of time which is open to us, such a scheme as is embodied in this Bill. There are large principles, there are substantial matters, the alteration of which would destroy the Bill, and on those we shall be obliged to ask, if they be challenged, for the support of the House. But in a matter of this kind I think it would be right that we should leave it to the decision of the House, and, as I have said, I for my part, acting with the independence which every Member will assume for himself, shall support the argument put forward by my right hon. and learned Friend, alike because this is a result of the deliberations of the Committee upstairs, and represents a compromise come to there, and because I believe on merits that it affords a sufficient protection to the moderate and reasonable user of licensed premises.
It ill-becomes me to make any complaint of the Whips being taken off, and I only say I hope that in the action which the Leader of the House has seen fit to take the House will remember, in the vote it gives, the very grave and weighty words with which the Attorney-General opened the debate. I hope, if this be the line the Government is going to take, that the House as a whole will remember the serious nature of any reversal on a vital point. It would be a disaster if this measure was lost by such action.
It is a very unfair thing to put this burden on the justices as the Bill stands. They will be bullied from morning till night.
I have listened with patience to what has been said by the other side, and I think one who could speak the voice of temperance may be permitted to state our position. We went into this Bound Table Conference with the body of the Conference weighted against us. We were four temperance members out of a personnel of 17, and when we came to vote on the question of hours only two voted against the Motion as it stands in the Bill to-day. When the matter came before the Standing Committee the question of hours passed un- challenged. This is a compromise Bill and this question of hours is a compromise. We are not dealing with pre-War hours. We are dealing with the question of hours as they are to-day and the increase of hours will be from 6½ to 8 or 8½ in England and in Scotland from 4½ to 8 or 8½. We who represented the temperance organisations and the Churches in the Bound Table Conference were strongly of opinion that it would be wise to confine the number of hours as near to what they are at present as possible but we agreed to a maximum of 8 and the Conference agreed that we should start from the hours as they are and remit the matter to the local justices ot decide whether the hours should remain as at present or whether they should be lifted up to the maximum. On the question of the increase of hours we have no evidence whatever of a substantial character that any large section of the community apart from this large assembly desires that increase of hours. We have from the Churches, we have from the temperance organisations, we have from the teachers, we have from the publicans, we have from that vast, moderate, reasonable section of the community, the manifest testimony of satisfaction with the hours as they exist at present, and it is a very serious matter when, at the first point we come to in the consideration of this Bill, there is this desire to depart from the compromise and agreement which had been reached seriously and solemnly. It suggests that a considerable number of Members wish to destroy the Bill. For the first time, this great question of licensing reform is being approached by agreement. No one can say that the temperance parts have been unreasonable in this matter.
You gain all the time.
If we are to have temperance reform, it can only come about by agreement. We have strained the loyalty of our friends outside almost to breaking point by concessions we have made, and I fear what the result may be.
In London the pre-War hours were 19½. We have endeavoured to approach this matter in a spirit of reasonable compromise. Many London Members have been asked to use their best endeavours to get the hours increased from nine to 12, but we have respected the Conference, and have endeavoured to stand behind the Conference. My hon. Friend (Mr. Broad) has given his case away. He stated that he and those acting with him were desirous of continuing the hours as nearly as possible as they are at present. Many of us are not of that opinion. We are not desirous of going back to the pre-War hours, but when it is a question of agreeing to support a measure of nine hours for London instead of 19½, we have certainly met the case in a spirit of compromise that ought to be recognised.
As this Division is going to be taken without the "Whips on, may I, as chairman of the Standing Committee which considered the Bill, say that there was confusion upstairs as to what we were voting on. The issue is simply whether it shall be a fixed eight hours all round, except for the metropolis, or whether there shall be a difference in the provinces of one hour, from seven to eight hours, at the discretion of the justices.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 135; Noes, 170.
Division No. 306.] AYES. [11.45 pm. Amery, Leopold C. M. S. Gregory, Holman Newman, Sir R. H. S. D. L. (Exeter) Armstrong, Henry Bruce Greig, Colonel Sir James William Nicholson, Reginald (Doncaster) Astor, Viscountess Harmsworth, C. B. (Bedford, Luton) Norman, Major Rt. Hon. Sir Henry Baird, Sir John Lawrence Hartshorn, Vernon Parry, Lieut.-Colonel Thomas Henry Baldwin, Rt. Hon. Stanley Hayward, Evan Pollock, Sir Ernest Murray Barlow, Sir Montague Henry, Denis S. (Londonderry, S.) Pratt, John William Barnes, Major H. (Newcastle, E.) Hewart, Rt. Hon. Sir Gordon Purchase, H. G. Barrie, Charles Coupar (Banff) Hilder, Lieut.-Colonel Frank Rattan, Peter Wilson Barton, Sir William (Oldham) Hinds, John Rankin, Captain James Stuart Bell, James (Lancaster, Ormskirk) Hogge, James Myles Rees, Capt. J. Tudor- (Barnstaple) Bentinck, Lord Henry Cavendish- Home, Sir R. S. (Glasgow, Hillhead) Reid, D. D. Bethell, Sir John Henry Inskip, Thomas Walker H. Roberts, Frederick O. (W. Bromwich) Birchall, Major J. Dearman Jameson, John Gordon Robinson, S. (Brecon and Radnor) Bird, Sir A. (Wolverhampton, West) John, William (Rhondda, West) Rodger, A. K. Blades, Sir George Rowland Johnstone, Joseph Seager, Sir William Bramsdon, Sir Thomas Jones, Sir Edgar R. (Merthyr Tydvil) Shaw, William T. (Forfar) Breese, Major Charles E. Jones, Sir Evan (Pembroke) Shortt, Rt. Hon. E. (N'castle-on-T.) Brown, T. W. (Down, North) Jones, Henry Haydn (Merioneth) Smith, Sir Malcolm (Orkney) Buckley, Lieut.-Colonel A. Jones, J. T. (Carmarthen, Lianelly) Spencer, George A. Carr, W. Theodore Kellaway, Rt. Hon. Fredk. George Sturrock, J. Leng Casey, T. W. Kerr-Smiley, Major Peter Kerr Taylor, J. Chamberlain, Rt. Hn. J. A. (Birm., W.) Lewis, Rt. Hon. J. H. (Univ., Wales) Thomas, Brig.-Gen. Sir O. (Anglesey) Chamberlain, N. (Birm., Ladywood) Lewis, T. A. (Glam., Pontypridd) Thomas, Sir Robert J. (Wrexham) Clough, Sir Robert Lindsay, William Arthur Thomson, T. (Middlesbrough, West) Coote, Colin Reith (Isle of Ely) Locker-Lampson, Com. O. (H'tingd'n) Turton, Edmund Russborough Cowan, D. M. (Scottish Universities) Lowther, Maj.-Gen. Sir C. (Penrith) Wallace, Thomas Brown (West Down) Davies, Major D. (Montgomery) Lunn, William Ward, Col. L. (Kingston-upon-Hull) Davies, Evan (Ebbw Vale) Lyle-Samuel, Alexander Waterson, A. E. Davies, Sir Joseph (Chester, Crewe) M'Connell, Thomas Edward Weston, Colonel John Wakefield Davies, Thomas (Cirencester) McCurdy, Rt. Hon. Charles A. Wheler, Col. Granville C. H. Davies, Sir William H. (Bristol, S.) McLaren, Hon. H. D. (Leicester) White, Charles F. (Derby, Western) Dawes, James Arthur Maclean, Rt. Hon. Sir D. (Midlothian) Whitia, Sir William Du Pre, Colonel William Baring Mallalieu, Frederick William Williams, Aneurin (Durham, Consett) Edge, Captain William Mason, Robert Williams, C. (Tavistock) Edwards, C. (Monmouth, Bedwellty) Middlebrook, Sir William Williamson, Rt. Hon. Sir Archibald Edwards, Hugh (Glam., Neath) Mond, Rt. Hon. Sir Alfred Moritz Wilson, Rt. Hon. J. W. (Stourbrdge) Elliot. Capt. Walter E. (Lanark) Montagu, Rt. Hon. E. S. Wilson, Colonel Leslie O. (Reading) Entwlstie, Major C. F. Moore-Brabazon, Lieut.-Col. J. T. C. Wintringham, Thomas Fisher, Rt. Hon. Herbert A. L. Morgan, Major D. Watts Wood, Major M. M. (Aberdeen, C.) Gange, E. Stanley Morison, Rt. Hon. Thomas Brash Yeo, Sir Alfred William Gee, Captain Robert Munro, Rt. Hon. Robert Young, E. H. (Norwich) Gilbert, James Daniel Murchison, C. K. Young, Robert (Lancaster, Newton) Glanville, Harold James Murray, Dr. D. (Inverness & Ross) Glyn, Major Ralph Murray, William (Dumfries) TELLERS FOR THE AYES.— Graham, R. (Nelson and Colne) Neal, Arthur Mr. Broad and Mr. Evans. Greene, Lt.-Col. Sir W. (Hack'y, N.) Newbould, Alfred Ernest
NOES. Agg-Gardner, Sir James Tynte Barnston, Major Harry Boyd-Carpenter, Major A. Ainsworth, Captain Charles Benn, Capt. Sir I. H., Bart. (Gr'nw'h) Brassey, H. L. C. Astbury, Lieut.-Com. Frederick W. Betterton, Henry B. Buchanan, Lieut.-Colonel A. L. H. Atkey, A. R. Bigland, Alfred Bull, Rt. Hon. Sir William James Balfour, George (Hampstead) Blair, Sir Reginald Burgoyne, Lt.-Col. Alan Hughes Banbury, Rt. Hon. Sir Frederick G. Boscawen, Rt. Hon. Sir A. Griffith- Butcher, Sir John George Barker, G. (Monmouth, Abertillery) Bowerman, Rt. Hon. Charles W. Cairns, John Barnett, Major Richard W. Bowyer, Captain G. W. E. Carter, R. A. D. (Man., Withington) Carter, W (Nottingham, Mansfield) Holbrook, Sir Arthur Richard Rawlinson, John Frederick Peel Cautley, Henry Strother Hood, Joseph Remer, J. R. Chilcot, Lieut.-Com. Harry W. Hope, Lt.-Col. Sir J. A. (Midlothian) Remnant, Sir James Churchman, Sir Arthur Hope, J. D. (Berwick & Haddington) Richardson, R. (Houghton-le-Spring) Colvin, Brig.-General Richard Beale Hopkins, John W. W. Roberts, Rt. Hon. G. H. (Norwich) Cope, Major William Horne, Edgar (Surrey, Guildford) Roberts, Samuel (Hereford, Hereford) Craik, Rt. Hon. Sir Henry Hunter, General Sir A. (Lancaster) Rose, Frank H. Davidson, J. C. C. (Hemel Hempstead) Hunter-Weston, Lieut-Gen. Sir A. G. Rounded, Colonel R. F. Davidson, Major-General Sir J. H. James, Lieut.-Colonel Hon. Cuthbert Royce, William Stapleton Davies, A. (Lancaster, Clitheroe) Jodrell, Neville Paul Rutherford, Colonel Sir J. (Darwen) Davies, Alfred Thomas (Lincoln) Johnson, Sir Stanley Rutherford, Sir W. W. (Edge Hill) Dewhurst, Lieut.-Commander Harry Jones, G. W. H. (Stoke Newington) Samuel, A. M. (Surrey, Farnham) Elliott, Lt.-Col. Sir G. (Islington, W.) Jones, J. J. (West Ham, Silvertown) Sanders, Colonel Sir Robert Arthur Falle, Major Sir Bertram Godfray Kelley, Major Fred (Rotherham) Sassoon, Sir Philip Albert Gustave D. Fell, Sir Arthur Kidd, James Seddon, J. A. Fildes, Henry Kiley, James Daniel Sexton, James FitzRoy, Captain Hon. Edward A. King, Captain Henry Douglas Shaw, Thomas (Preston) Ford, Patrick Johnston Kinloch-Cooke, Sir Clement Simm, M. T. Foreman, Sir Henry Law, Alfred J. (Rochdale) Smith, W. R. (Wellingborough) Forestier-Walker, L. Lawson, John James Sprot, Colonel Sir Alexander Fraser, Major Sir Keith Lloyd, George Butler Stanley, Major Hon. G. (Preston) Frece, Sir Walter de Lloyd-Greame, Sir P. Stanton, Charles Butt Fremantle, Lieut.-Colonel Francis E. Lort-Williams, J. Steel, Major S. Strang Ganzoni, Sir John Lowther, Major C. (Cumberland, N.) Sugden, W. H. Gibbs, Colonel George Abraham Lowther, Col. Claude (Lancaster) Swan, J. E. Gillis, William Macquisten, F. A. Thomson, Sir W. Mitchell- (Maryhill)> Gilmour, Lieut.-Colonel Sir John Maddocks, Henry Thorne, W. (West Ham, Plaistow) Goff, Sir R. Park Malone, Major P. B. (Tottenham, S.) Tryon, Major George Clement Gould, James C. Manville, Edward Walton, J. (York, W. R., Don Valley) Goulding, Rt. Hon. Sir Edward A. Marriott, John Arthur Ransome Ward-Jackson, Major C. L. Grant, James Augustus Martin, A. E. Warner, Sir T. Courtenay T. Gray, Major Ernest (Accrington) Matthews, David Warren, Sir Alfred H. Green, Joseph F. (Leicester, W.) Mitchell, Sir William Lane White, Col. G D. (Southport) Greer, Harry Molson, Major John Elsdale Williams, Lt.-Col. Sir R. (Banbury) Gretton, Colonel John Morrison, Hugh Willoughby, Lieut.-Col. Hon. Claud Gritten, W. G. Howard Morrison-Bell, Major A. C. Wills, Lt.-Col. Sir Gilbert Alan H. Grundy, T. W. Nall, Major Joseph Wilson, James (Dudley) Guest, J. (York, W.R., Hemsworth) Newman, Colonel J. R. P. (Finchley) Wilson, Lt.-Col. Sir M. (Bethnal Gn.) Guinness, Lieut.-Col. Hon. W. E. Nicholson, William G. (Petersfield) Wilson, W. Tyson (Westhoughton) Hallwood, Augustine Norris, Colonel Sir Henry G. Wise, Frederick Hall, Lieut.-Col. Sir F (Dulwich) Parker, James Wood, Hon. Edward F. L. (Ripon) Hall, F. (York, W. R., Normanton) Parkinson, Albert L. (Blackpool) Worsfold, T. Cato Hall, Rr-Adml Sir W. (Liv'p'l.W.D'by) Percy, Lord Eustace (Hastings) Worthington-Evans, Rt. Hon. Sir L. Hannon, Patrick Joseph Henry Perkins, Walter Frank Young, Sir Frederick W. (Swindon) Harmsworth, Hon. E. C. (Kent) Pinkham, Lieut.-Colonel Charles Younger, Sir George Henderson, Major V. L. (Tradeston) Poison, Sir Thomas A. Hennessy, Major J. R. G. Pownall, Lieut.-Colonel Assheton TELLERS FOR THE NOES.— Herbert, Dennis (Hertford, Watford) Prescott, Major W. H. Captain O'Grady and Sir Ernest Hirst, G. H. Ramsden, G. T. Wild. Hohler, Gerald Fitzroy Raper, A. Baldwin
I beg to move, in Subsection (1), to leave out the words, "and a minimum of seven hours."
On a point of Order. The Leader of the House stated that he was not putting on the Whips, but his Whips appear to have been busy, because they were busy directing people into the "Aye" lobby.
Perhaps the hon. Member will discuss that in his domestic circles.
Amendment agreed to.
The hon. Member for Houghton-le-Spring (Mr. R. Richardson) has handed in a manuscript Amendment which I think is not quite on the right lines.
On a point of Order. I have a manuscript Amendment to leave out the words "and Monmouth."
I have not reached that point yet.
I bow to your ruling, Mr. Speaker, with regard to my manscript Amendment.
CLAUSE 2.—(Permitted Hours on Sundays.)
(1) The hours during which intoxicating liquor may be sold or supplied on Sundays, Christmas Day and Good Friday in any licensed premises or club, for consumption either on or off the premises, shall be as follows, that is to say: a maximum of five hours, of which not more than two shall be between twelve (noon) and three in the afternoon, and not more than three between six and ten in the evening.
Provided that in Wales and Monmouthshire there shall be no permitted hours for licensed premises on Sundays, or on Christmas Day when it falls on a Sunday.
(2) Subject to the foregoing provisions the permitted hours on Sundays shall be such as may be fixed, in the case of licensed premises by order of the licensing justices of the licensing district, and in the case of a club in accordance with the rules of the club:
Provided that, pending any decision under this Sub-section, the permitted hours on Sundays, Christmas Day and Good Friday, shall be the hours between half-past twelve and half-past two in the afternoon, and the hours between half-past six and half-past nine in the evening.
Amendment made: In Sub-section (1) leave out the words, "as follows, that is to say, a maximum of"—[ Mr. W. Thorne. ]
I beg to move in Sub-section (1) to leave out the words "and Monmouthshire."
12 M.
I do not desire to enter into any long details, because it is a matter which can be explained in a very few words. I cannot understand for the life of me why this Clause includes Monmouthshire. Under the compromise, about which I confess I am rather sick of hearing so much—because whenever I say anything about this Bill I hear, "Oh! it is a compromise, you must not do anything"—this matter was not discussed by the Conference. It was left entirely to this House to decide. It is a matter for Monmouthshire. Our friends in Glamorgan want to get Monmouthshire in the Clause. I had a letter only yesterday saying, "These Glamorgan fellows always want to get something good. They evidently want to be respectable this time and so want to be included with Monmouthshire." Whose is the hidden hand that got this put in the Bill? What has it to do with this compromise or with the restoration of pre-War freedom? There is no Member for Monmouthshire who is going to ask this House to include Monmouthshire in this Sunday closing. All I can say is that any Member who does so will say farewell to this House.
Threats!
That is not a threat; it is an absolute fact. We have not had much time in Monmouthshire to consider these points, but since the people got to know what was taking place in this House, mass meetings have been held from one end of the county to the other. I have had no more to do with them than any other Member here, but in every case where such meetings have been held—and the other side have got a fair show—resolutions have been passed by enormous majorities against Monmouthshire being included—[HON. MEM- BERS: "No, no!"]. I am not in the habit of saying what is untrue. The hon. Member for Leigh (Mr. Reffan) will have a chance. He is, I believe, still a member of the Monmouth County Council and he used to live in Monmouthshire, but I am afraid he forgets a good deal of what has happened since he left there. I feel quite certain that if he goes now to the place where he used to live in Monmouthshire he will find that any attempt on his part to address a public meeting on this subject will lead to the same experience which I had in 1910 over the question of the big loaf and the little loaf and that 99 per cent, of the people will be against him. I would suggest that it is for us in Monmouthshire to decide our own affairs. [HON. MEMBERS: "No, the Welsh Members."] I do not take the Welsh Members' opinion on this matter, because I do not think they know anything about Monmouthshire. The hon. Member who has just spoken lived in Monmouthshire, I know for many years, but he has left for a higher sphere, if I may say so, in connection with a very important and very large federation—one of the biggest and strongest in the country. I am convinced, if he goes back to the country of his birth, he will find a very different view taken of this matter to that which was taken when he lived in Monmouthshire. [HON. MEMBERS: "Because he left."] Very likely it is owing to his absence. I put it to the House that they should consider the fact of these mass meetings being held all over Monmouthshire against the inclusion of Monmouthshire. In Newport there was a huge mass meeting only on Sunday night, attended by 7,000 or 8,000 men, which decided by an enormous majority against inclusion, and similar meetings have been held at Newport, Abergavenny and other centres. This is a matter which should be decided by the people of the country. [HON. MEMBERS: "Divide."] If English Members will not help Monmouthshire in this matter, I at least ask the Government to take off the Whips and let us have a fair and free vote upon it.
I represent a Monmouthshire constituency, but am supporting the Government on the Bill as it stands. I take my chance whether I come back here or not. I very much regret that the Government have been giving way already. I thought that this was practically an agreed Bill. The hon. Member for Monmouth (Mr. Forestier-Walker) says that Monmouthshire Members ought to decide the question. I am prepared to accept that, and if it is to be so decided, I believe that four out of the six Members for Monmouthshire would suppport the Bill as it stands. That challenge has been thrown out and I accept it. That settles that matter. Monmouthshire is in the most difficult position of any county in the country. There are border counties between England and Scotland and between England and Wales, but there is no county fixed exactly like Monmouthshire. For that reason my opinion is that a plebiscite of the people of Monmouthshire ought to be taken to settle this point of principle and it should not be left to two or three Members. The licensed victuallers believe that they have the majority and they have offered to pay half the cost of a referendum. The temperance and church people say that they would welcome that as they say they have a majority. It is impossible for anyone to say where the majority lies, and for that reason it should be left to the people of Monmouthshire to decide for themselves. In 1899, a Royal Commission sat and recommended the same Clause for Monmouthshire. That, to my mind, would not be as satisfactory as a plebiscite. When the Government come to deal with any permanent Measure, it will not be satisfactory for this country unless a plebiscite be taken.
I hope that no words of mine will interfere with the good temper and the good humour with which this Debate is being conducted. [ Laughter. ] Yes, I mean exactly what I say.
Do not give away anything.
I will compress my remarks into as few words as possible. It is quite true, as the hon. Member who moved this Amendment said, that Monmouthshire forms no part of the agreement of the Round Table Conference. We had discussion about it, and we were not able to arrive at an agreement. In the result this point, together with one or two others, was left to those who might have the responsibility of drafting the Bill. I say that at once, but I do hope sincerely that the House is going to support this proposal. Let us see how the matter stands. We were considering at the Round Table Conference how to adapt to time of peace the lessons learned during the War. The hon. Member who moved this Amendment said that Monmouthshire was no part of Wales. Of course, if it were part of Wales, this proposal would not be necessary. During the War, so far as Sunday closing was concerned, for reasons which seemed overwhelming, Monmouthshire was treated as if it were a part of Wales. Why was that? Because of overmastering geographical and industrial considerations. But it was not left to the War to produce that result. The House is well aware that in many matters of legislation, for the same excellent reasons, Monmouthshire has been treated as being part of Wales. It was so for the purposes of Welsh Disestablishment. It was so with reference to the special provisions as to Welsh education, and I am sure that there are many Members of this House who remember well that in the year 1881, when the Sunday Closing Act was passed, an attempt was made to include Monmouthshire, and in the Bill of 1908 Monmouthshire was in fact so included. Hon. Members remember perfectly well the famous Commission presided over by Lord Balfour of Burleigh, which recommended the inclusion of the county of Monmouthshire within the provisions for Sunday closing.
What, then, is the position? Glamorgan is contiguous with Monmouthshire. The great centre of Cardiff is separated from Newport by, I am told, a halfpenny ride on a tramcar. [HON. MEMBERS dissented. ] I am told it is 1½d. We will not quarrel about the odd copper. At any rate, the two places are so near that common sense suggests that they should be treated as one. This proposal was put in the Bill after the most careful consideration as to the needs of the particular locality. It was carefully considered in Committee upstairs. We have heard during the past few weeks a good deal as to the importance which ought to be attributed, and which is rightly attributed to the decisions of Committees upstairs. How did this proposal fare there? The matter was fully argued upon the one side and upon the other, and the Committee, by a majority of 22 votes to 10, supported the proposal. That being so, I do hope that this House will not lightly reject it. Though the Government will not put on the Whips, I once more appeal, with the greatest earnestness, to those on both sides of the House who desire to see this compromise loyally and faithfully carried out, to support the proposal.
I only desire to emphasise the fact, in spite of what the learned Attorney-General has said, that Monmouthshire is an English county. It is perfectly true that Monmouthshire has been included in various Welsh Acts, chiefly for education and religion, and also it has been included in certain great Welsh commercial affairs, notably the South Wales and Momouthshire Miners' Federation, and the South Wales and Monmouthshire Mineowners' Association, but, to my mind, that is no argument at all why Monmouthshire should be included in the restrictions imposed by this liquor Bill, and for the reason that Monmouthshire was included in those Welsh Acts and in those Welsh commercial affairs merely for the convenience of administration, and there is no question of administration in extending the Welsh Sunday Closing Act. There are associations connected with the Church and associations connected with education which make it convenient for Monmouthshire to be inccded in Wales for these purposes, but so long as there is no question of administrative convenience in extending the liquor control to Monmouthshire I say emphatically that, as Monmouthshire is an English county, it should not be included in this, and I beg to support the Amendment.
This is the third occasion within a fortnight that this subject has been discussed in the House, namely, on Second Reading, in Committee upstairs, and now. It is very distasteful to me to have to answer my hon. Friend who has played so great a part in South Wales, but I cannot allow his speech to pass unchallenged, because he has unconsciously misled the House in several particulars. He referred to mass meetings. Everyone knows how easy it is at mass meetings to get resolutions passed. I can quote resolutions at mass meetings on precisely the opposite side. If hon. Members will only be good enough to relieve their minds of the idea that we are trying by a side wind to introduce prohibition into Monmouthshire, they will be able to arrive at a fair estimate of the views on this question. My hon. Friend was a member two years ago of a very important conference held in Shrewsbury to discuss the question of Home Rule for Wales, and one of the proposals was that Monmouthshire should in all cases be included in Wales. I do not remember his exact words, but I am almost sure he said that it would be silly to do otherwise, and that conference unanimously decided that, in the event of devolution coming on, Monmouthshire should be included in Wales. My hon. Friend said that in some matters it has been included. Not in "some," but in all matters for the last 25 years Monmouthshire has been included in legislation passed in this House affecting Wales. So I ask the House to accept my assurance that this is not a question of making a special exemption or special provision with regard to Monmouthshire. It is only carrying out what has been the settled policy of successive Governments, whether Unionist or Liberal, for the last 20 or 25 years, of associating Monmouthshire with the other counties of Wales. All we ask is that this practice should be continued in regard to this measure. Not a single reason has been adduced why this particular question should be treated differently from any other which affects local government in Wales, and I respect fully ask the House to look at it from that point of view.
I want to say only a few words. [HON. MEMBERS: "Divide!"] It is not very often that I trouble the House. [HON. MEMBERS: "Divide!"]. I only desire to remind the learned Attorney-General that on Second Reading he said this matter would depend on the view to be taken by hon. Members from that part of the country. We have heard definitely that four Members out of six are in favour of putting Monmouthshire into the Bill. [HON. MEMBERS: "Three!"] I have got the names of the four. I have here a letter from the hon. Member for Newport, in which he says:
"I think perhaps you might like to know that the Newport Trades and Labour Council, a body representative of the trades unionism of the district, has passed a resolution in favour of Sunday closing in Monmouthshire. I send you this information as I understand the Licensing Bill comes on on Tuesday, and I shall not be able to attend."
So there are four Members out of the six in favour of passing this, and if you were to decide it on that ground alone I think Monmouthshire is entitled to be included in the Bill. I am very sorry the learned Attorney-General said what he did about this proposal. [ Interruption. ] The Committee decided by 23 votes to 10 to put it in the Bill. [ Interruption. ] It is a sign of weakness on the part of the Government that they have not stuck to it. The hon. Member who proposed the omission of Monmouthshire spoke of resolutions passed in the county in favour of his proposal. May I give a sample of several dozens that I have received? I should like to give one which is a sample of
many others. The resolution states that, recognising the beneficent results that have followed the entire closing of licensed houses and clubs in Monmouthshire on Sundays, by which the Sabbath drunkenness which disgraced the county has been entirely eradicated, and villages and towns restored to their wonted orderliness and decorum, it is earnestly hoped the Government will retain the Clause. So I claim that the wish of the majority of the inhabitants of Monmouthshire is to share with Wales the blessings of Sunday closing.
Question put, "That the words 'and Monmouthshire' stand part of the Bill."
The House divided: Ayes, 190; Noes, 81.
Division No. 307.] AYES. [12 25 a.m. Ainsworth, Captain Charles Fisher, Rt. Hon. Herbert A. L. Maclean, Rt. Hon. Sir D. (Midlothian) Amery, Leopold C. M. S. FitzRoy, Captain Hon. Edward A. MacVeagh, Jeremiah Armstrong, Henry Bruce Ford, Patrick Johnston Mallalieu, Frederick William Astbury, Lieut.-Com. Frederick W. Frece, Sir Walter de Marriott, John Arthur Ransome Astor, Viscountess Fremantle, Lieut.-Colonel Francis E. Mason, Robert Atkey, A. R. Gange, E. Stanley Matthews, David Baird, Sir John Lawrence Gee, Captain Robert Middlebrook, Sir William Baldwin, Rt. Hon. Stanley Gibbs, Colonel George Abraham Molson, Major John Elsdale Barlow, Sir Montague Gilbert, James Daniel Mond, Rt. Hon. Sir Alfred Moritz Barnes, Major H. (Newcastle, E.) Gillis, William Montagu, Rt. Hon. E. S. Barnston, Major Harry Gilmour, Lieut.-Colonel Sir John Morgan, Major D. Watts Barrie, Charles Coupar (Banff) Glanville, Harold James Morison, Rt. Hon. Thomas Brash Barton, Sir William (Oldham) Graham, R. (Nelson and Colne) Morrison-Bell, Major A. C. Bell, James (Lancaster, Ormskirk) Greer, Harry Munro, Rt. Hon. Robert Benn, Capt. Sir I. H., Bart.(Gr'nw'h) Gregory, Holman Murchison, C. K. Bethell, Sir John Henry Greig, Colonel Sir James William Murray, Dr. D. (Inverness & Ross) Betterton, Henry B. Griffiths, T. (Monmouth, Pontypool) Nall, Major Joseph Bigland, Alfred Guest, J. (York, W. R., Hemsworth) Neal, Arthur Birchall, Major J. Dearman Hall, F. (York, W. R., Normanton) Newbould, Alfred Ernest Bird, Sir A. (Wolverhampton, West) Harmsworth, C. B. (Bedford, Luton) Newman, Sir R. H. S. D. L. (Exeter) Blades, Sir George Rowland Hartshorn, Vernon Norman, Major Rt. Hon. Sir Henry Boscawen, Rt. Hon. Sir A. Griffith- Henderson, Major V. L. (Tradeston) Norris, Colonel Sir Henry G. Bramsdon, Sir Thomas Hennessy, Major J. R. G. Parker, James Breese, Major Charles E. Henry, Denis S. (Londonderry, S.) Parry, Lieut.-Colonel Thomas Henry Broad, Thomas Tucker Hewart, Rt. Hon. Sir Gordon Pease, Rt. Hon. Herbert Pike Brown, T. W. (Down, North) Hilder, Lieut.-Colonel Frank Percy, Lord Eustace (Hastings) Buchanan, Lieut.-Colonel A. L. H. Hinds, John Pollock, Sir Ernest Murray Buckley, Lieut.-Colonel A. Hohler, Gerald Fitzroy Pownall, Lieut.-Colonel Assheton Bull, Rt. Hon. Sir William James Hood, Joseph Pratt, John William Burgoyne, Lt-Col. Alan Hughes Hopkins, John W. W. Proscott, Major W. H. Carr, W. Theodore Horne, Edgar (Surrey, Guildford) Purchase, H. G. Casey, T. W. Horne, Sir R. S. (Glasgow, Hillhead) Rankin, Captain James Stuart Chamberlain, Rt. Hn. J. A. (Birm., W.) Inskip, Thomas Walker H. Raper, A. Baldwin Chamberlain, N. (Birm., Ladywood) Jameson, John Gordon Rawlinson, John Frederick Peel Chilcot, Lieut.-Com. Harry W. John, William (Rhondda, West) Rees, Capt. J. Tudor- (Barnstaple) Churchman, Sir Arthur Johnson, Sir Stanley Reid, D. D. Clough, Sir Robert Johnstone, Joseph Roberts, Frederick O. (W. Bromwich) Colvin, Brig.-General Richard Beale Jones, Sir Edgar R. (Merthyr Tydvil) Robinson, S. (Brecon and Radnor) Coote, Colin Reith (Isle of Ely) Jones, Sir Evan (Pembroke) Rodger, A. K. Cowan, D. M. (Scottish Universities) Jones, G. W. H. (Stoke Newington) Rose, Frank H. Davies, A. (Lancaster, Clitheroe) Jones, Henry Haydn (Merioneth) Rutherford, Sir W. W. (Edge Hill) Davies, Major D. (Montgomery) Jones, J. T. (Carmarthen, Lianelly) Samuel, A. M. (Surrey, Farnham) Davies, Evan (Ebbw Vale) Kellaway, Rt. Hon. Fredk. George Sanders, Colonel Sir Robert Arthur Davies, Sir Joseph (Chester, Crewe) Kerr-Smiley, Major Peter Kerr Sassoon, Sir Philip Albert Gustave D. Davies, Sir William H. (Bristol, S.) King, Captain Henry Douglas Seager, Sir William Dawes, James Arthur Lewis, Rt. Hon. J. H. (Univ., Wales) Shaw, William T. (Forfar) Du Pre, Colonel William Baring Lewis, T. A. (Glam., Pontypridd) Shortt, Rt. Hon. E. (N'castle-on-T.) Edge, Captain William Lindsay, William Arthur Smith, Sir Malcolm (Orkney) Edwards, Hugh (Glam., Neath) Lloyd-Greame, Sir P. Stanley, Major Hon. G. (Preston) Elliot, Capt. Walter E. (Lanark) Locker-Lampson, Com. O. (H'tingd'n) Sturrock, J. Leng Entwistle, Major C. F. Lowther, Maj.-Gen. Sir C. (Penrith) Sugden, W. H. Evans, Ernest Lunn, William Sutherland, Sir William Eyres-Monsell, Com. Bolton M. M'Connell, Thomas Edward Taylor, J. Falle, Major Sir Bertram Godfray McCurdy, Rt. Hon. Charles A. Thomas, Brig.-Gen. Sir O. (Anglesey) Fildes, Henry McLaren, Hon. H. D. (Leicester) Thomas, Sir Robert J. (Wrexham) Thomson, T. (Middlesbrough, West) Williamson, Rt. Hon. Sir Archibald Worthington-Evans, Rt. Hon. Sir L. Thomson, Sir W. Mitchell- (Maryhill) Wills, Lt.-Col. Sir Gilbert Alan H. Yeo, Sir Alfred William Tryon, Major George Clement Wilson, Rt. Hon. J. W. (Stourbridge) Young, E. H. (Norwich) Turton, Edmund Russborough Wilson, Colonel Leslie O. (Reading) Young, Sir Frederick W. (Swindon) Ward, William Dudley (Southampton) Wilson, W. Tyson (Westhoughton) Young, Robert (Lancaster, Newton) Warren, Sir Alfred H. Wintringham, Thomas Waterson, A. E. Wise, Frederick TELLERS FOR THE AYES.— White, Col. G. D. (Southport) Wood, Hon. Edward F. L. (Ripon) Mr. Charles Edwards and Mr. Whitia, Sir William Wood, Major M. M. (Aberdeen, C.) Raffan. Williams, Aneurin (Durham, Consett) Worsfold, T. Cato
NOES. Agg-Gardner, Sir James Tynte Hallwood, Augustine Perkins, Walter Frank Balfour, George (Hampstead) Hall, Lieut.-Col. Sir F. (Dulwich) Pinkham, Lieut.-Colonel Charles Banbury, Rt. Hon. Sir Frederick G. Hall, Rr-Adml Sir W.(Liv'p'l,W.D'by) Polson, Sir Thomas A. Barker, G. (Monmouth, Abertillery) Hannon, Patrick Joseph Henry Ramsden, G. T. Barnett, Major Richard W. Harmsworth, Hon. E. C. (Kent) Remer, J. R. Blair, Sir Reginald Hirst, G. H. Remnant, Sir James Bowerman, Rt. Hon. Charles W. Holbrook, Sir Arthur Richard Richardson, R. (Houghton-le-Spring) Bowyer, Captain G. W. E. Hope, Lt.-Col. Sir J. A. (Midlothian) Roberts, Rt. Hon. G. H. (Norwich) Boyd-Carpenter, Major A. Hope, J. D. (Berwick & Haddington) Roberts, Samuel (Hereford, Hereford) Cairns, John Hunter, General Sir A. (Lancaster) Roundell, Colonel R. F. Cautley, Henry Strother Jodrell, Neville Paul Rutherford, Colonel Sir J. (Darwen) Cockerill, Brigadier-General G. K. Jones, J. J. (West Ham, Silvertown) Seddon, J. A. Curzon, Captain Viscount Kelley, Major Fred (Rotherham) Simm, M. T. Davidson, Major-General Sir J. H. Lloyd, George Butler Stanton, Charles Butt Dewhurst, Lieut.-Commander Harry Lort-Williams, J. Steel, Major S. Strang Elliott, Lt.-Col. Sir G. (Islington, W.) Lowther, Major C. (Cumberland, N.) Terrell, George (Wilts, Chippenham) Foreman, Sir Henry Lowther, Col. Claude (Lancaster) Thorne, W. (West Ham, Plaistow) Fraser, Major Sir Keith Macquisten, F. A. Walton, J. (York, W. R., Don Valley) Ganzoni, Sir John Maddocks, Henry Ward-Jackson, Major C. L. Goff, Sir R. Park Malone, Major P. B. (Tottenham, S.) Warner, Sir T. Courtenay T. Gould, James C. Manville, Edward Wild, Sir Ernest Edward Goulding, Rt. Hon. Sir Edward A. Moore-Brabazon, Lieut.-Col. J. T. C. Williams. C. (Tavistock) Gray, Major Ernest (Accrington) Murray, William (Dumfries) Willoughby, Lieut.-Col. Hon. Claud Greene, Lt.-Col. Sir W. (Hack'y, N.) Newman, Colonel J. R. P. (Finchley) Wilson, James (Dudley) Gretton, Colonel John Nicholson, William G. (Petersfield) Wilson, Lt.-Col. Sir M. (Bethnal Gn.) Gritten, W. G. Howard Norton-Griffiths, Lieut.-Col. Sir John Grundy, T. W. O'Grady, James TELLERS FOR THE NOES.— Guinness, Lieut.-Col. Hon. W. E. Parkinson, Albert L. (Blackpool) Mr. Forestier-Walker and Major Cope.
Amendment made: In Sub-section (2), leave out the words "half-past six and half-past nine" ["between half past six and half-past nine in the evening"], and insert instead thereof the words "seven and ten."—[ Sir J. Hewart. ]
CLAUSE 3.—(Special provision as to extension of permitted hours in the evening in certain premises.)
(1) The provisions of this Act as to permitted hours on weekdays shall, as respects licensed premises or clubs to which this Section applies, have effect, if the holder of the licence or the committee, of the club so elects, as though there were added to the permittd hours in the evening a period of one hour after the hour fixed generally in the same licensing district as the conclusion of the permitted hours:
Provided that any intoxicating liquor sold or supplied during that hour shall be sold or supplied only for consumption at a meal supplied at the same time in such portion of the premises as is usually set apart for the service of meals, and no person shall consume or be permitted to consume any intoxicating liquor on the premises during that hour except at such meal, and any bar in the said premises shall be closed during that hours—"
(2) The premises to which this Section applies are any licensed premises with respect to which the licensing justices are satisfied that they are structurally adapted and bonâ fide used for the purpose of habitually providing, for the accommodation of persons frequenting the premises, substantial refreshment, to which the sale and supply of intoxicating liquor is ancillary.
(3) The holder of the licence, or the secretary of the club, shall give not less than fourteen days' previous notice in writing to the superintendent of the police of the district wherein the premises are situate that he elects that the foregoing provisions of this Section shall apply to the premises and of the date on which he intends to begin to avail himself of the said provisions; and on and after that date shall affix and keep permanently affixed in some conspicuous place in the premises a notice to the effect that the provisions of this Section apply to the premises; and the said provisions shall apply accordingly for the period of the current licensing year, and shall continue to apply unless the holder of the licence or secretary gives not less than fourteen days' notice in writing before the expiration of any licensing year to the superintendent of the police aforesaid that he intends to cease to avail himself of the provisions of this Section, in which case the said provisions shall cease to apply at the end of that year.
I beg to move, in Sub-section (1), to leave out the words
"there were added to the permitted hours in the evening a period of one hour after the hour fixed generally in the same licens- ing district as the conclusion of the permitted hours—"
and to insert instead thereof the words
"one hour were added at the end of the permitted hours in the evening."
The object of this Amendment is to make it quite clear that the privileges contained in the Clause are to extend no less to clubs than to licensed premises.
Amendment agreed to.
Further Amendment made: In Sub-section (1), after the word "any" ["and any bar"], insert the word "drinking." —[ Sir G. Hewart. ]
I beg to move, in Subsection (1), after the word "bar," to insert the words "other than a service bar."
This is merely a drafting Amendment, which I hope the Attorney-General will accept.
I thought I had assented to that in the formal Amendment just agreed to.
Then I withdraw the Amendment.
Amendment, by leave, withdrawn.
I beg to move, in Sub-section (2). to leave out the words
"The premises to which this Section applies are any licensed premises with respect to which—"
and to insert instead thereof the words
"This Section applies to any licensed premises or clubs, if and so long as—"
I should like to draw the attention of the Attorney-General to what has taken place on this particular Clause in Committee. This, and I believe the first Amendment in the Clause, is made necessary, and a later one also, I think, as a result of a compromise entered into in Committee. At any rate it was a concession which was given to some of us that there ought to be, before the licensee availed himself of the provisions of this Bill, some provision whereby the licensing justices who reviewed the circumstances, that is to say, before a licensee opened his premises for the extra hour, he should go to the licensing justices and get permission. I understand that this concession was granted by the Secretary for Scotland, and I am fortified in this opinion by the words as reported in Committee:
"Mr. MUNRO: If my hon. Friend, for example, were willing to add words to make it quite clear that in the event of application being made to the Licensing Court and the Licensing Court being satisfied that the premises were structurally satisfactory as to their suitability to carry on this business, permission might be given, I think we might be able to meet one another."
The Clause as now drafted makes no provision whereby the licensing justices will be able to give express permission to a licensee before he avails himslf of this particular privilege. Supposing the Clause were passed as it now stands, and a licensee were without going to the licensing justices to give notice to the police and open his premises for the extra hour, would he be committing any licensing offence? That is what I want to ask the Attorney-General, and would there be any penalty if it is intended to-erect premises? If there is no penalty, I say the whole value of the concessions has gone. I hope the Attorney-General will try to amend this to some further extent so as to carry out the pledge which I suggest was contained in the words I have read.
If I follow the remarks of my hon. and learned Friend—and I am not sure that I do—he appears to be speaking about a matter which we shall approach in a few minutes, and not, I think, upon this Amendment. The object of this Amendment, if he will be good enough to look at the Bill, is to give full effect to Clause 3 in its application to clubs. If the licensing justices are satisfied that any particular premises are no longer in good faith used for the purposes to which the Clause relates, the privileges cease. For the rest, Sub-section (3) of Clause 3 sets out, I think, in full the requirements which have to be observed.
With due respect, I submit that the matter does arise upon this Amendment. If there is to be a subsequent explanation I certainly have no wish to occupy time in discussing the matter twice. It appears to me that the Attorney-General should kindly simplify the Amendment we are now discussing, as this Section applies to any licensed premises or clubs and therefore raises for the first time the question as to the manner and method in which this permission is to be obtained. We understood upstairs in the compromise arrived at, that as the Bill was originally framed there was no necessity for the applicant to go to the Licensing Justices at all. It was agreed that the Licensing Justices should be arbiters as to whether the premises were suitable or not, and in the event of the justices finding that the premises were not suitable then they could not be used. What my hon. and gallant Friend and myself are now anxious to ascertain is in what way it is made clear that application is to be made to the magistrates and what penalty, if any, is to be imposed if the licence holder proceeds on his own option, having advised the superintendent of the police, to keep the premises open for the sale of liquor without first having obtained the permission of the magistrates. It is in no way clear in the Clause as it stands.
I think that the answer to the question as put by my hon. Friend is contained in Sub-section (2) of this Clause. This Sub-section applies to any licensed premises in respect of which the Licensing Justices are satisfied that they are structurally adapted and bonâ fide used for the purpose of habitually providing substantial refreshment and so on. It is required that the Justices shall be satisfied. If without the fulfilment of that condition the licensee were to take upon himself the function of determining that he could have the benefit of Clause 3, it might follow that he would be keeping open during an hour which was not among the permitted hours and he would therefore be guilty of an offence under the Act.
May I be allowed to ask the right hon. and learned Gentleman whether that means that a publican in the East End of London may not be able to adapt his premises for the purpose of allowing his customers who may want supper to have the same opportunity that somebody in the West End of London already has.
On the contrary, there is no geographical limitation of any kind. As long as the premises are structurally suitable and in good faith used for this purpose, it matters not where they are.
Would it be possible for premises that are structurally suitable to be adapted for the purpose, seeing that it is required to have proper places for people to be entertained in.
It is obvious that I cannot express an opinion upon premises which I do not see. But I know no reason at all, arising from the mere fact that the licensed premises are situate in the East End, which would prevent this Clause from having its full application.
Amendment agreed to.
Further Amendments made: In Subsection (3), leave out the words
"that he elects that the foregoing provisions of this Section shall apply to the premises and".
Leave out the words "said provisions" ["avail himself of the said provisions"], and insert instead thereof the words "provisions of this Section."—[ Sir G. Hewart. ]
I beg to move, after Sub-section (3), to insert a new Sub-section—
"4. Upon giving not less than seven days' notice to the local police authority a club shall be entitled on special occasions, not exceeding six in any one year, to continue the sale or supply of intoxicating liquor until half an hour after midnight where the club is situated in the metropolis and until midnight where it is situated elsewhere."
This is a privilege which clubs enjoyed prior to the War, and it was never abused in any shape or form. That is why we are asking for this very small Amendment. We believe we are able to manage our own affairs in our own way without doing harm to anybody. After all, clubs do not work for profit, and no dividends are paid, and, consequently, the whole thing will be a boon conferred upon members of a club who have in the past always abided by it. There has been no complaint whatever where this privilege has been extended.
I beg to second the Amendment.
I am rather sorry that my hon. Friend, who was a member of the Round Table Conference, has given notice of this Amendment in writing at this late hour. Even now I have no copy of the Amendment. If he had thought it right to send me a copy of it, I should have been able to save the time of the House.
May I say I did hand this Amendment in at the Committee upstairs, but by some means it was overlooked?
The answer is that it is totally unnecessary. The matter is already provided for by Sections 55 to 57 of the Licensing Consolidation Act, 1910, adapted to this Measure by the Second Part of the First Schedule.
With that explanation, I beg to ask leave to withdraw my Amendment.
Amendment, by leave, withdrawn.
CLAUSE 5.—(Exemptions and saving provisions.)
Nothing in the foregoing provisions of this Part of this Act shall be deemed to prohibit or restrict—
( a ) the sale or supply to, or consumption by, any person of intoxicating liquor in any licensed premises or club where he is residing; or
( b ) the ordering of intoxicating liquor to be consumed off the premises, or the despatch by the vendor of liquor so ordered; or
( c ) the supply of intoxicating liquor for consumption on licensed premises to any private friends of the holder of the licence bonâ fide entertained by him at his own expense, or the consumption of intoxicating liquor by persons so supplied; or
( d ) the consumption of intoxicating liquor with a meal by any person in any licensed premises or club at any time within half-an-hour after the conclusion of the permitted hours, provided that the liquor was supplied during permitted hours and served at the same time as the meal and for consumption at the meal; or
( e ) the sale of intoxicating liquor to a trader for the purposes of his trade, or to a registered club for the purposes of the club; or
( f ) the sale or supply of intoxicating liquor to or in any canteen where the sale of intoxicating liquor is carried on under the authority of a Secretary of State or the Admiralty, or to any authorised mess of officers or noncommissioned officers of His Majesty's naval, military, or air forces.
I beg to move, in paragraph ( b ) after the word "despatch," to insert the words "as prescribed by Section seven of this Act."
I am not sure whether these words are necessary, but no doubt the Attorney-General will tell me.
I beg to second the Amendment.
I should like to assure my hon. Friend that this proposal is quite unnecessary. I rather think that he must have overlooked the words at the beginning of the Clause—
"Nothing in the foregoing provisions of this part of this Act—"
This particular point is covered by Clause 7, which follows, and deals with the distribution of liquor generally.
I ask leave to withdraw my Amendment.
Amendment, by leave, withdrawn.
I beg to move, after paragraph ( c ), to insert a new paragraph—
"( d ) The sale or supply for consumption of intoxicating liquor to bonâ fide travellers."
I move this Amendment because I think this matter is one of very material moment. It is one which is left out in this Bill and one which I think ought to be put in. There are a great many injustices, particularly with regard to the country hotels, which have to cater for the people who come great distances in order to have entertainment of various kinds. The times at which intoxicating liquor is allowed to be served is limited practically to two and a half or three hours, when that is incorporated by the magistrates in the Bill, in the middle of the day. I would like to remind the House of an hotel which is in my constituency, which is known to many hon. Members—I refer to the Cat and Fiddle Hotel, outside Buxton. That hotel is the highest hotel in the United Kingdom. It stands many hundred feet above the sea-level. I would ask, who, in their senses would go to that hotel late in the evening? Owing to the break that is presented in this Bill there are practically no hours in which they could do their business. There are many hotels like that. That is, perhaps, a glaring case, but there are many hotels out in the country where there is practically no long business at all; where their business is practically confined to a few hours in the middle of the day. There is the further point of the traveller who arrives very late, after hours, very tired, after 10 o'clock or 11 o'clock, and is utterly unable to obtain any alcoholic refreshment.
I do not wish to interrupt the hon. Gentleman, but I think that he is under a misapprehension, which is also a little prevalent outside this House. He entirely overlooks the provision at the beginning of this Clause, which says:
"Nothing in the foregoing provisions of this Part of the Act shall be deemed to prohibit or restrict ( a ) the sale or supply to, or consumption by, any person of intoxicating liquor in any licensed premises or club where he is residing."
So that the Unfortunate man who arrives at the hotel at 10, 11, or 12 o'clock at night can drink from that moment as long as he likes.
I am sure that that assurance will be very re-assuring to many people—
No.
But I would point out that that only applies if the traveller happens to be sleeping in the hotel, and therefore it restricts very considerably the facilities which used to be given quite properly to the bonâ fide traveller. I know the case of a man who was travelling during the War. He was unable to obtain any refreshment and actually died in one of the hotels.
He died through taking too much.
If these facilities had been available to that man he would have been alive to-day. Intoxicating liquor would have stopped his illness, and have enabled him to have overcome his illness from which he died. There are many reasons I could bring before the House in favour of this Sub-section.
I beg to second the Amendment.
I do not want to detain the House at this time of night, but I would like to say that there are a great number of travellers who desire, and to whom it is at times necessary, to drink. [ Interruption. ] All sections of society travel about the country and it is necessary that they should be able to get what is necessary for them to drink. Therefore, I second the Amendment with great confidence.
1.0 A.M.
This Amendment is the swan song of the bonâ fide traveller. He was disposed of in Committee upstairs, and departed, I believe, "unwept, unhonoured, and unsung!" But what is the position under this Bill, as far as the real substance of the complaint is concerned? The complaint which was made by the Mover, and reiterated by the Seconder, related to the person who arrives late at the hotel. I have had a great many letters myself from commercial travellers, pointing out their supposed grievance. Their grievance is that if they neglect to give notice beforehand that alcoholic refreshment will be necessary at the moment of their arrival, they may arrive so late that they cannot obtain it. The Bill already provides for that. Those who are resident on licensed premises and those interesting persons who are known as the landlord's friends, are already provided for. There is a little difficulty about the bonâ fide traveller. He used to be a Sabbatarian only. Now there is a great difference. He might be active every day. The bond fide traveller used to be a person who walked three miles. Now he is a person who travels three miles at a great rate not using his legs or his muscles. But he may be just as thirsty. I suggest seriously that the time has come to say farewell to him, without more valedictory lacrimosities than are suitable, and to treat him as he was treated by the Committee upstairs.
The right hon. Gentleman should recognise that there is a large number of people who are not able to travel long distances for the purpose of getting a drink, but there are large numbers of people in our big cities and towns who walk into the country on Sunday, and who ought to be provided for, as in the days before the War. Workmen do not agree to these restrictions even now. They have not been asked whether they agree to them or not. This legislation is simply the stabilisation of War-time restrictions. The matter has not been placed before the workers. We know that the brewers on the one side and the teetotalers on the other have agreed, and the workers must accept what their masters decide. I want to speak on behalf of the common workman who goes for a walk on a Sunday and does not ride. He is not in the habit of drinking more beer than some of those who want to prevent him from getting any. The workman who goes out for a walk on a Sunday morning has as much right to pre-War conditions as the gentleman who goes out in his motor car with a luncheon basket and a couple of bottles of champagne. We are not asking for any privileges, but only for the restoration of rights. Is it a crime to drink a glass of beer? Those gentlemen who think they are going to make people sober by Act of Parliament say it is a crime to drink beer at all. We are only asking that in this kind of legislation the ordinary human feeling of the workman should be recognised. If you can go and book a room in a hotel, you can get blind drunk if you want to, but if you only call in while passing you are a criminal. We are asking for the restoration of pre-War conditions within reason. Why should men who go out for a walk on the only day of the week they are free be debarred from the right to a drink, while a gentleman in a motor can book a room, though he does not use it, in order to get a drink?
In the event of this Amendment being defeated, will that prevent me moving my Amendment, which simply applies the bonâ fide traveller conditions to a Sunday?
I think it would. It deals with the same question.
In those circumstances, I beg leave to withdraw my Amendment.
Amendment, by leave, withdrawn.
I beg to move, after paragraph ( f ), to insert a new paragraph—
"( g ) the sale or supply to, or consumption by, bonâ fide travellers on Sunday, except where the licence is a six-day licence and the sale is on a Sunday."
The arguments which have been used by my colleague the hon. Member for Silvertown (Mr. J. Jones) must have weighed heavily with the House. I think the Attorney-General was right in saying that it would be difficult to recognise the bonâ fide traveller every day. But he will agree that the bonâ fide traveller on Sunday has a claim, and I hope he will be able to accept this very mild Amendment from a very mild man.
I beg to second the Amendment.
I do not want to repeat what I have already said upon this matter. But I should like to point out that the bonâ fide traveller is not, in the words of the hon. Member for Silver-town (Mr. Jones), "deprived of his rights on Sunday." The bonâ fide traveller has five hours in which, on Sunday, he may slake his thirst. The hon. Member had put down this Amendment before I announced that the maximum was also to be the minimum for Sunday hours. It may be that, while the Bill fixed a maximum only, there was a case for the bonâ fide traveller on Sunday. Now I submit that that case has gone, since it has been decided that licensed premises shall be open on Sundays for five hours.
Does that mean that the local authorities will have the power to fix hours to suit the convenience of the various localities?
They cannot fix fewer than five.
There appears to be some misunderstanding. As a matter of fact, so far as the Conference had any influence, the question of the bonâ fide traveller was not decided by that Conference. This is the recommendation of the Government in introducing its own Bill. As regards the merits of the question, it is entirely a public question, and as far as I understand the traders' position it is that the bonâ fide traveller is in many cases regarded as a nuisance. That is not the view which ought to prevail. It is for this House to consider whether there is a grievance, and to put it right if there be one. We ought to afford reasonable conveniences to the public, as is required. I have had a large number of letters from people on this subject. I do not know whether it is realised that the railway refreshment-rooms will have no advantage, and will be opened and closed like the rest of the houses in the district. Amongst the letters I have received are letters from travellers by road, who point out that they will be deprived of opportunities for refreshment. And the roads are being more largely used, not only by pedestrians, but by bicyclists and those who ride in the larger and smaller types of cars. If this action is endorsed after a rather joking Debate, I can assure the Attorney-General that the bonâ fide traveller will make himself heard at another time.
I do not know whether there is a desire to wreck the Bill by introducing such Amendments. I was a member of the Committee which dealt with the Bill, and this question was never raised in the Committee. There seemed to be a real spirit of compromise in the Committee upon this Bill. I believe that the people do desire this Bill. I know that the West Biding, for one of the divisions of which I am a member, wants this Bill, and is very anxious to get it through Parliament. I live in the country, and I know the bond fide traveller is a bonâ fide humbug. "We do not want him infesting the countrysides. The bond fide traveller gives an unfair advantage to certain houses. If you want to open the houses at all hours of the day, open them, but do not give an unfair advantage to one house situated in one part of the village over the other houses. I sincerely hope that in the interests of the people living in the West Riding, and the workers of this country, that the Bill will be passed. It is not the workers who do walk these miles on Sunday mornings. There are many facilities by which they can ride into the country, and there is this advantage given to one licence-holder and not to another. I hope this Amendment will be defeated, and that this Bill will go through. The people are anxious for it.
I do not speak on behalf of the Labour party, and I want the Members of the Government to understand that my colleagues are not speaking on behalf of the Labour party. [HON. MEMBERS: "We never did. We never mentioned the Labour party at all."] I never suggested that either of my hon. Friends was speaking on behalf of the Labour party. I think I am correct in saying that licensed premises are supposed to supply refreshment for people who ask for it, but I oppose this Amendment on the ground that I am a trades unionist and I believe in giving the licensed victualler and the barmaid a day of rest. We find that when these licensed victuallers are compelled to supply refreshments, they have to stay at home, or keep the barman or barmaid there. From that standpoint I oppose this Amendment, and hope that the Government will not capitulate on this occasion.
Do I understand that the Government are to keep on the Whips?
On this occasion the Government Whips will tell.
There is some disturbance on these Benches in relation to this Amendment. Some approach it from the trade union point of view. I repeat that after all there is a great body of opinion in this country that this should be dealt with fairly and squarely. My friends have been temperance advocates. I give them credit for their convictions though I do not agree with them at all. As a matter of fact, this is a Clause in which you have deliberately deprived the bonâ fide traveller of his rights of pre-War times. That was a strange provision. You are bringing in a Bill now to repeal provisions of a previous Act. I know large numbers of men in the West Riding and various parts of the kingdom who take their walks on Sunday mornings, but not for the purpose of getting drink. Take my own case. I used to pedal a bicycle before I got crippled with the surgeon's knife. Does a man go out on a pedal bicycle for the purpose of getting drink? The thing is absurd. The assumption behind all this is that you are dealing with a drink-soddened democracy. I resent the insult implied. I doubt very much whether the casual workman will take these expensive travels for the purpose of getting drink Under these circumstances he should have his rights restored. Of this I am certain, outside the workman there is a great volume of public opinion in this country who will say that the workman who gets up on a Sunday morning for the purpose of the walk and the exercise and who works during the week should not be deprived of his rights.
Question put, "That these words be there inserted in the Bill."
The House divided: Ayes, 59; Noes, 199.
Division No. 308.] AYES. [1.22 a.m. Agg-Gardner, Sir James Tynte Harmsworth, Hon. E. C. (Kent) Raper, A. Baldwin Barker, G. (Monmouth, Abertillery) Herbert. Dennis (Hertford, Watford) Remer, J. R. Blair, Sir Reginald Hirst, G. H. Remnant, Sir James Bowerman, Rt. Hon. Charles W. Hunter, General Sir A. (Lancaster) Roberts, Rt. Hon. G. H. (Norwich) Boyd-Carpenter, Major A. Jodrell, Neville Paul Roberts, Samuel (Hereford, Hereford) Bull, Rt. Hon. Sir William James Jones, G. W. H. (Stoke Newington) Roundell, Colonel R. F. Churchman, Sir Arthur Jones, J. J. (West Ham, Silvertown) Rutherford, Colonel Sir J. (Darwen) Curzon, Captain Viscount Kelley, Major Fred (Rotherham) Seddon, J. A. Dewhurst, Lieut.-Commander Harry Kinloch-Cooke, Sir Clement Simm, M. T. Fraser, Major Sir Keith Lloyd, George Butler Stanton, Charles Butt Frece, Sir Walter de Lort-Williams, J. Steel, Major S. Strang Ganzoni, Sir John Lowther, Major C. (Cumberland, N.) Terrell, George (Wilts, Chippenham) Goff, Sir R. Park Lowther, Col. Claude (Lancaster) Walton, J. (York, W. R., Don Valley) Gould, James C. Macquisten, F. A. Wild, Sir Ernest Edward Goulding, Rt. Hon. Sir Edward A. Malcne, Major P. B. (Tottenham, S.) Willoughby, Lieut.-Col. Hon. Claud Gretton, Colonel John Manville, Edward Wilson, Lt.-Col. Sir M. (Bethnal Gn.) Gritten, W. G. Howard Martin, A. E. Worsfold, T. Cato Hallwood, Augustine Nicholson, William G. (Petersfield) Hall, F. (York, W. R., Normanton) Norton-Griffiths, Lieut.-Col. Sir John TELLERS FOR THE AYES.— Hall, Rr-Adml Sir W. (Liv'p'I.W.D'by) Percy, Lord Eustace ,(Hastings) Mr. William Thorne and Captain Hannon, Patrick Joseph Henry Poison, Sir Thomas A. O'Grady.
NOES. Ainsworth, Captain Charles FitzRoy, Captain Hon. Edward A. Mond, Rt. Hon. Sir Alfred Moritz Amery, Leopold C. M. S. Ford, Patrick Johnston Montagu, Rt. Hon. E. S. Armstrong, Henry Bruce Foreman, Sir Henry Moore-Brabazon, Lieut.-Col. J. T. C. Astor, Viscountess Fremantle, Lieut.-Colonel Francis E. Morgan, Major D. Watts Atkey, A. R. Gange, E. Stanley Morison, Rt. Hon. Thomas Brash Baird, Sir John Lawrence Gee, Captain Robert Morrison-Bell, Major A. C. Baldwin, Rt. Hon. Stanley Gibbs, Colonel George Abraham Munro, Rt. Hon. Robert Balfour, George (Hampstead) Gilbert, James Daniel Murchison, C. K. Barlow, Sir Montague Gillis, William Murray, Dr. D. (Inverness & Ross) Barnes, Major H. (Newcastle, E.) Gilmour, Lieut.-Colonel Sir John Murray, William (Dumfries) Barnett, Major Richard W. Graham, R. (Nelson and Colne) Neal, Arthur Barnston, Major Harry Gray, Major Ernest (Accrington) Newbould, Alfred Ernest Barton, Sir William (Oldham) Greer, Harry Newman, Sir R. H. S. D. L. (Exeter) Bell, James (Lancaster, Ormskirk) Greig, Colonel Sir James William Nicholson, Reginald (Doncaster) Bethell, Sir John Henry Griffiths, T. (Monmouth, Pontypool) Norman, Major Rt. Hon. Sir Henry Betterton, Henry B. Grundy, T. W. Norris, Colonel Sir Henry G. Birchall, Major J. Dearman Guest, J. (York, W. R., Hemsworth) Parker, James Bird, Sir A. (Wolverhampton, West) Hall, Lieut.-Col. Sir F. (Dulwich) Parry, Lieut.-Colonel Thomas Henry Blades, Sir George Rowland Harmsworth, C. B. (Bedford, Luton) Pease, Rt. Hon. Herbert Pike Boscawen, Rt. Hon. Sir A. Griffith- Hartshorn, Vernon Perkins, Walter Frank Bowyer, Captain G. W. E. Hennessy, Major J. R. G. Pinkham, Lieut.-Colonel Charles Brassey, H. L. C. Henry, Denis S. (Londonderry, S.) Pollock, Sir Ernest Murray Breese, Major Charles E. Hewart, Rt. Hon. Sir Gordon Pownall, Lieut.-Colonel Assheton Broad, Thomas Tucker Hilder, Lieut.-Colonel Frank Pratt, John William Brown, T. W. (Down, North) Hinds, John Prescott, Major W. H. Buchanan, Lieut.-Colonel A. L. H. Hohier, Gerald Fitzroy Purchase, H. G. Buckley, Lieut.-Colonel A. Holbrook, Sir Arthur Richard Raffan, Peter Wilson Burgoyne, Lt.-Col. Alan Hughes Hope, Lt.-Col. Sir J. A. (Midlothian) Ramsden, G. T. Carr, W. Theodore Hopkins, John W. W. Rankin, Captain James Stuart Carter, W. (Nottingham, Mansfield) Home, Edgar (Surrey, Guildford) Rawlinson, John Frederick Peel Casey, T. W. Home, Sir R. S. (Glasgow, Hillhead) Rees, Capt. J. Tudor- (Barnstaple) Cautley, Henry Strother Inskip, Thomas Walker H. Reid, D. D. Chamberlain, Rt. Hn. J. A. (Birm., W.) Jameson, John Gordon Roberts, Frederick O. (W. Bromwich) Chamberlain, N. (Birm., Ladywood) John, William (Rhondda, West) Robinson, S. (Brecon and Radnor) Chilcot, Lieut.-Com. Harry W. Johnson, Sir Stanley Rodger, A. K. Clough, Sir Robert Johnstone, Joseph Royce, William Stapleton Colvin, Brig.-General Richard Beale Jones, Sir Edgar R. (Merthyr Tydvil) Rutherford, Sir W. W. (Edge Hill) Coote, Colin Reith (Isle of Ely) Jones, Henry Haydn (Merioneth) Samuel, A. M. (Surrey, Farnham) Cowan, D. M. (Scottish Universities) Jones, J. T. (Carmarthen, Lianelly) Sanders, Colonel Sir Robert Arthur Davidson, J.C. C.(Hemel Hempstead) Kellaway, Rt. Hon. Fredk. George Sassoon, Sir Philip Albert Gustave D. Davidson, Major-General Sir J. H. Kidd, James Seager, Sir William Davies, A. (Lancaster, Clitheroe) King, Captain Henry Douglas Shaw, William T. (Forfar) Davies, Major D. (Montgomery) Lewis, Rt. Hon. J. H. (Univ., Wales) Shortt, Rt. Hon. E. (N'castle-on-T.) Davies, Evan (Ebbw Vale) Lewis, T. A. (Glam., Pontypridd) Smith, W. R. (Wellingborough) Davies, Thomas (Cirencester) Lindsay, William Arthur Stanley, Major Hon. G. (Preston) Davies, Sir William H. (Bristol, S.) Lloyd-Greame, Sir P. Sturrock, J. Leng Dawes, James Arthur Locker-Lampson, Com. O. (H'tingd'n) Sugden, W. H. Du Pre, Colonel William Baring Lowther, Maj.-Gen. Sir C. (Penrith) Sutherland, Sir William Edge, Captain William Lunn, William Taylor, J. Edwards, C. (Monmouth, Bedwellty) M'Connell, Thomas Edward Thomas, Brig.-Gen. Sir O. (Anglesey) Edwards, Hugh (Glam., Neath) McLaren, Hon. H. D. (Leicester) Thomas, Sir Robert J. (Wrexham) Elliot, Capt. Walter E. (Lanark) Maclean, Rt. Hon. Sir D. (Midlothian) Thomson, T. (Middlesbrough, West) Elliott, Lt.-Col. Sir G. (Islington, W.) MacVeagh, Jeremiah Thomson, Sir W. Mitchell- (Maryhill) Entwistle, Major C. F. Maddocks, Henry Tryon, Major George Clement Evans, Ernest Mallalieu, Frederick William Turton, Edmund Russborough Eyres-Monsell, Com. Bolton M. Mason, Robert Wallace, Thomas Brown (West Down) Falle, Major Sir Bertram Godfray Matthews, David Ward, William Dudley (Southampton) Fildes, Henry Middlebrook, Sir William Ward-Jackson, Major C. L. Fisher, Rt. Hon. Herbert A. L. Molson, Major John Eisdale Warner, Sir T. Courtenay T. Warren, Sir Alfred H. Wills, Lt.-Col. Sir Gilbert Alan H. Young, E. H. (Norwich) Waterson, A. E. Wilson, Rt. Hon. J. W. (Stourbridge) Young, Sir Frederick W. (Swindon) Weston, Colonel John Wakefield Wilson, W. Tyson (Westhoughton) Young, Robert (Lancaster, Newton) Wheler, Col. Granville C. H. Wintringham, Thomas Younger, Sir George White, Col. G. D. (Southport) Wise, Frederick Whitla, Sir William Wood, Hon. Edward F. L. (Ripon) TELLERS FOR THE NOES.— Williams, Aneurin (Durham, Consett) Wood, Major M. M. (Aberdeen, C.) Colonel Leslie Wilson and Mr. Williams, C. (Tavistock) Worthington-Evans, Rt. Hon. Sir L. McCurdy.
I beg to move, after paragraph ( f ), to insert a new paragraph—
"( g ) the sale at any time at a railway station of intoxicating liquors to persons arriving at or departing from the station by railroad."
It is a very short Amendment in manuscript which I hope the Attorney-General will see his way to accept. It is merely reproducing a Section in the Licensing Consolidation Act of 1910 with regard to travellers by rail at railway stations. This is not the case of our friend the bonâ fide traveller, about whom we have heard so much. This is the traveller by rail, whose times for stopping are not matters which he allots to himself, but-depend entirely upon the train service. It is a real hardship to people who are travelling by rail, perhaps from 11 in the morning until they have to change after three in the afternoon, after the ordinary time for the supply of intoxicating liquor, and then have to start an hour before the opening hours recommence. It is not a case which would leave any loophole for people wishing to drink. I submit it is a concession that may be reasonably made to travellers who cannot possibly avoid having to take their refreshment at such times as the railway companies' arrangements give them the chance to do.
I beg to second the Amendment.
I hope my hon. Friend will not press this Amendment. The practical difficulties which it would entail are manifest on consideration. If this proposal were to be adopted, the effect would be that during hours when the nearest licensed premises were closed, the railway station bar would be kept open for persons arriving at or departing from that station. A penny ticket would qualify, and who would control? The grievance which is to be remedied is infinitely small.
I should like to support very cordially the Amendment which has been proposed. This is not a matter of pandering to anyone seeking for alcoholic indulgence. It is a matter of convenience to bonâ fide travellers on the railways who must have paid for their admission, so to speak, before they are allowed to have a little alcohol. I would ask the House to consider very seriously what is the alternative. They have to take the two cups masquerading as tea and coffee which, beyond being warm and wet, I have not found any parallel in the railway station- It is simply the revival of the Act which has been in force until now; it is simply repeating what has been crystallised into an excellent custom wherever it has obtained. I would press very sincerely and earnestly on the Attorney-General the fact that whilst there may be people who are ready to drink whenever they can get it, there are a larger majority who want it when they have to travel.
Amendment negatived.
CLAUSE 7.—(Conditions as to distribution.)
No person shall either by himself or by any servant or agent—
( a ) sell, supply, distribute, or deliver any intoxicating liquor from any van, barrow, basket, or other vehicle or receptacle, unless before the liquor is despatched it has been ordered and the quantity, description and price thereof, together with the name and address of the person to whom it is to be supplied, has been entered in a delivery book or invoice, which shall be carried by the person delivering the liquor, and in a day book which shall be kept on the premises from which the liquor is despatched; or
( b ) carry or convey in any van, barrow, basket or other vehicle or receptacle, while in use for the distribution or delivery of intoxicating liquor, any such liquor not entered in such delivery book or invoice and day book; or
( c ) distribute or deliver any intoxicating liquor at any address not specified in such delivery book or invoice and day book; or
( d ) refuse to allow any constable to examine such van, barrow, basket or other vehicle or receptacle, or such delivery book or invoice.
Amendments made: In paragraph (
"or induce any person to sell, supply, distribute, or deliver."
At the end of the Clause add the words "Provided that the holder of a licence shall not be liable to any penalty under this Section in respect of an offence committed by his servant or agent if he proves that such offence was committed without his knowledge or consent."— [
CLAUSE 8.—(Restriction on credit for on-sales.)
No person shall—
( a ) either by himself or by any servant or agent sell or supply in any licensed premises or club any intoxicating liquor to be consumed on the premises; or
I beg to move, in paragraph ( a ), after the word "on" ["on the premises"] to insert the words "or off."
This Amendment raises rather a curious point. Under the Bill it is provided that no credit is allowed to be given for any liquor which is sold on the premises, but unlike the custom that prevails at the moment if you order a bottle or a case of whisky you can get credit for it. If you look at the equity of the thing, I think the House will find it is rather unreasonable to ask a man who sells the drink to pay a tax on behalf of the consumer who invariably pays in the long run. What happens is that the man who buys the bottle of wine which is consumed off the premises instead of paying the tax owes for the tax and eventually pays; whilst the trader gets no time from the Treasury in the payment of tax, and the man to whom credit is given can take his own time about paying. It is quite a small point and I do not want to take up the time of the House. I hope the Attorney-General may see his way that this inequitable rule is not going to be continued.
I beg to second the Amendment.
I do not think that we can accept this Amendment. If we were to do so, the effect would be to prohibit credit for "off" sales as well as for "on" sales, and I understand that if there was one Regulation of the Central Control Board which excited a little irritation, it was the Regulation that prevented credit for "off" sale. The hon. and gallant Member who moved this Amendment seemed to think that if we permitted credit, we make it compulsory. We do not go so far as that.
Amendment, by leave, withdrawn.
CLAUSE 11.—(Supplementary provisions as to orders of licensing justices.)
(3) A document purporting to be an Order of licensing justices under this Part of this Act shall be evidence of the contents thereof.
Amendment made: In Sub-section (3), leave out the words "an order of" and insert instead thereof the words "issued by."—[ Sir G. Hewart. ]
CLAUSE 14.—(Repeal of War pre/visions and abolition of Central Control Board (Liquor Traffic.)
(2) Any property (whether real or personal) vested at the time of the passing of this Act in the Board or their trustees is hereby transferred to and vested in the Secretary of State as respects property in England, and in the Secretary for Scotland as respects property in Scotland.
(3) If the Secretary of State or the Secretary for Scotland is satisfied that any property vested in him by this Act is no longer required, he may sell or otherwise dispose of it in such manner as he may think fit.
Amendment made: In Sub-section (2), leave out the word "passing," and insert the words "commencement of this part."—[ Sir G. Hewart. ]
I beg to move, in Sub-section (3), to leave out the word "If" ["If the Secretary of State"].
There are various Amendments which stand in my name to Clause 14, Sub-section (3). Perhaps it would be convenient to the House at this late hour if I were allowed to take the first one, and take a decision on that. They all deal with the same matter. The purport of my Amendment is to alter the Clause, and make it read as follows: appreciate that I would have raised this point in Committee, but unfortunately I was unable to do so; otherwise I would not have wearied the House at this late hour on this particular point. If the Amendment is carried the effect would be that the Secretary of State would have to wind up the State management affairs in and around Carlisle before a certain date. If he were unable to do so, and if it was not desired to do so, he would have to come to Parliament to seek fresh authority to delay or to account for his action.
Apart altogether from the question of whether this experiment in Carlisle has been a success or not, it is an experiment which has had a great opportunity, and which has had a considerable amount of testing. Certainly what my own constituents feel most strongly is that if be held that the experiment has been a successful one it should be applied to the whole country, and not only to that part. If, on the other hand, the experiment has not been successful, the business should be wound up like any other business, and Carlisle should revert to the same conditions as everybody else in the country. The House will bear with me if I explain that the special regulations that have hitherto applied to Carlisle and district were the result of a special state of circumstances connected with a very important munitions factory at Gretna. These special circumstances have long since gone, and the factory itself, I believe, is being disposed of. The feeling very largely of my constituents is this. Since this factory is being disposed of—a factory from which a great number of my constituents gained a livelihood—they feel that the property should now be disposed of, and that they should revert to the same conditions as the rest of the country. I do not wish to carry my arguments on this particular Clause any further, because I shall be moving an Amendment to leave out the following Clause.
I beg to second the Amendment.
It was a matter of very real regret to my colleagues on the Committee upstairs, as well as to myself, that through some accident my hon. and gallant Friend was not a member of that Committee and did not have an opportunity of expressing his views on the matter. His Amendment is, as he says, the first of a series of Amendments which, taken together, would have the effect of putting an end to direct management of public-houses in any one of the areas of direct control. I am bound to point out to him that, incidentally, his present proposal illustrates the practical difficulty in which we find ourselves. If this Amendment and the next two Amendments were to be adopted, the effect would be for a time to introduce a policy of prohibition in Carlisle. He would compel the Secretary of State by a certain date to get rid of the property which the Bill, if it were carried, would give him. What does my hon. and gallant Friend propose to do between that date and the date on which the next licensing sessions are to be held? The licence would have gone and there would be a great practical difficulty. There would be nobody able to sell liquor in Carlisle. That would be a result which I am sure my hon. and gallant Friend does not desire. But it illustrates the practical difficulties of the problem. What is the position? For reasons of which my hon. and gallant Friend is aware it was thought desirable—indeed more, it was thought necessary—in Carlisle and one or two other areas to take actual and complete—or almost complete—control of the production and distribution of alcoholic liquor. That scheme has been carried out during the period of which the House is aware. It has been, as the House knows, a remarkable success. It has been carried out by an extraordinarily able, experienced, and wise body of voluntary workers, and it redounds to their lasting credit. There is that property, that system, that management. How is it to be dealt with? You cannot take the drastic and rapid course which my hon. and gallant Friend suggests. All kinds of difficulties would arise if you attempted to do. so. What, then, is the proposal in the Bill? In Clauses which are clearly stamped as temporary by their introductory words, it is provided that the districts shall be managed by the Secretary of State or by the Secretary for Scotland, advised in each case by a local advisory committee. I do submit to the House that in the actual practical difficulties with which we find ourselves confronted, that was the best and the most businesslike way of dealing with the matter. I trust that my hon. and gallant Friend, on second thoughts, strongly as he feels upon this matter, and entitled as his views are to the greatest respect, will not press his Amendment to a Division.
Amendment negatived.
CLAUSE 15.—(State management districts.)
(1) Until Parliament otherwise determines, the schemes of State management of the liquor traffic established by the Board under the Defence of the Realm (Liquor Control) Regulations, 1915, in the districts defined in the Second Schedule to this Act (in this Act referred to as State Management Districts) may be continued, by the Secretary of State as respects districts in England, and by the Secretary for Scotland as respects districts in Scotland. For this purpose such of the said regulations as are contained in the extract therefrom which is set out in the Third Schedule to this Act are hereby continued in force in their application to those districts, and shall to that extent have effect as if enacted in this Act:
Provided that references to the Secretary of State or the Secretary for Scotland, as the case may require, shall be substituted for references to the Board, and a reference to an offence against this Act shall be substituted for the reference to a summary offence against the Defence of the Realm (Consolidation) Regulations, 1914:
Provided also that the power to acquire premises compulsorily shall apply only in the Carlisle district.
(2) The powers of the Board to carry on business shall, so far as concerns any premises in which the Board was carrying on business at the date of the passing of this Act, be transferred to the Secretary of State and exercisable by him accordingly.
(3) The Secretary of State and Secretary for Scotland shall appoint such persons as they think fit to act as local advisory committees for the purpose of assisting them in the management of the State Management Districts, and pending any such appointment the persons acting as local advisory committees in those districts at the date of the passing of this Act, shall be the local advisory committees.
(4) The Secretary of State and the Secretary for Scotland shall cause such accounts to be kept, in relation to the State Management Districts, as the Treasury may direct, and shall cause an annual report to be presented to Parliament as to their procedure in connection with the management of those districts.
(5) In connection with any transfer effected by this Part of this Act the provisions 6et out in the Fourth Schedule to this Act shall have effect.
I beg to move to leave out Clause 15.
We have arrived now at a stage where property is vested in the Secretary of State or the Secretary for Scotland who has the power to sell or otherwise dispose of it in any manner as he thinks fit. The Clause deals with the powers which are given to him when he takes over the property, and they are extraordinarily wide.
Perhaps I ought to point out to the hon. and gallant Member that, in moving to leave out the Clause, he will preclude discussion on the remaining Amendments to the Clause, as I shall put the question "That the Clause stand part of the Bill." He is, of course, quite entitled to move his Amendment.
That places me in rather an unfortunate position, because if there were, on this Clause, any agreement on this matter, I would willingly give in, but if there is no agreement I would rather state the case on the whole Clause.
May I suggest that the better plan would be that the powers should be limited? Perhaps my hon. and gallant Friend would withdraw his Amendment and support, me on the other Amendments to the Clause?
I beg to ask leave to withdraw.
Amendment, by leave, withdrawn.
I beg to move, in Subsection (1), to leave out the words "Until Parliament otherwise determines," and to insert instead thereof the words
"For a period not exceeding twelve months after the passing of this Act."
My hon. and gallant Friend (Major William Murray) has an Amendment down to insert "for a period of two years," and I should be perfectly content to take that course. I do not want to impose any undue hurry, especially after the speech of the Attorney-General. There is, however, a difference, in my submission, between compelling the Secretary for Scotland to sell the property and allowing this experiment in State management to go on. I suggest that it is undesirable that this State management should continue. The Clause says, "Until Parliament otherwise determines," but that, in effect, means for ever. I suggest that it ought to be temporary, and I have no objection to the period being two years, after which these properties ought to be brought under the common law of the land. It is unreasonable that the Home Secretary with his many activities, although assisted by a local committee, should be carrying on a system of State control. Therefore I move my Amendment, but I would be prepared to substitute two years instead of one.
I beg to second the Amendment.
My constituents, who are very much affected by this question. They do not desire to be experimented upon any longer, so far as their advices have reached me. They have been the victims of one experiment in the shape of the factory at Gretna, and they will continue to suffer because of the failure of that experiment. But they do not wish to be experimented upon a second time. They point out that as the factory at Gretna is now to be closed, and as the character of the district is to be very much changed, there is no reason for the continuation of the liquor control in their midst. The reason of the liquor control was the setting up of the Government factory at Gretna. That is to be done away with, and there-fore the chief reason for this system of State management of liquor in that district has disappeared. There is only one small burgh in the district; the rest is a rural area. The burgh is the burgh of Annan, the council of which has sent me a resolution asking me to protest against the burgh remaining under State control and against their being excluded from the general licensing law governing the rest of Scotland. I beg to do so, and I may add that when, during the War, the Liquor Control Board was brought in the Provost and the town council and Justices of Annan understood that when the War came to an end an end would be put to the State management of liquor within the burgh. Looking at the conditions of Gretna, which have so much changed, there is an additional reason for that arrangement being come to.
The Amendment is really unnecessary. Clause 15 opens with the words "Until Parliament otherwise determines." It is made as plain as language can make it that what is contemplated is something of a temporary and transitional character. One does not know, of course, what the future may bring forth, but it is made plain that the scheme is regarded as temporary. Old constitutional lawyers used to say that Parliament could do everything in its sovereign power except make a man a woman or a woman a man. Perhaps Parliament has gone some way even to that end. But at least the sovereignty of Parliament is sufficient to deal with this matter. If my hon. and learned Friend were successful in persuading the House to insert these words and insist upon a cast-iron time-limit, what would be the effect? It would still be within the power of Parliament to determine, but a rigid time-limit might give rise to mere embarrassment and mere inconvenience. No useful purpose, I suggest, would be served by the insertion of a particular date. It is enough that we have stamped this part of the Bill as essentially temporary by the use of the words "Until Parliament otherwise determines."
I think there ought to be some time-limit within which it should be decided whether this should go on or not. There are objections by many people. The temperance party object to State management of public-houses. The reason for it has passed away. The right hon. Gentleman has made out a clever case, but he knows that the phrase "Until Parliament otherwise determines" is different from putting on a time-limit. In the one case it has to deal with the matter, and in the other it may or it may not. An exotic experiment of this kind ought to be decided one way or the other within a limited time.
2.0 A.M.
I speak entirely for myself. I understand that some of my friends near me regard this experiment with great favour. The convictions for drunkenness are mounting up at Carlisle and going down in the rest of the country. In any case this House is entitled to a little fuller information as to what are the intentions of the Government. The Attorney-General says the opening words mark this Clause as transitory. If it is transitory what has the Government considered to be the ultimate form of this Measure 1 What does the Government mean to do? Have they simply put this here though they have already a scheme for dealing with Carlisle? I think the House ought to know clearly what is the real position of the Government. After all, with great respect to the right hon. Gentleman, these words "until Parliament otherwise determines," mean nothing at all. There is no single Member in this House who does not know that. There is not a line which is not "until Parliament otherwise determines." All the Bill can be repealed, but that is very different from it having to come up two years from now for revision. If this is merely a transitory provision, two years is ample time in which the Government can make their plans and inform the House what they are going to do. If they think it desirable to have another year's extension, I think the House would assent to that. The matter could be put in the Expiring Laws Continuance Bill. So far as I am personally concerned, I think we ought to have some indication of the intention of the Government.
May I be allowed to recall the somewhat similar case—that of the railways? In that case a definite term of control was fixed, because that was to be an experiment by the State, at the end of which something definite was to be done.
The railways go back to the owners.
These State-managed areas may go back to the owners, if Parliament determines. We are but half-a-dozen Members who are interested in the experiment, and you must recollect the press of Parliamentary business. What possible consideration could we get when urging the claim of this matter to be reviewed? The intentions of the Attorney-General may be of the very best, but there may be a change of Government. The hon. Member for Thanet (Mr. E. Harmsworth) may be at the head of an anti-waste Government. He might point to the experiment and say that it is making money, and that that is a very good reason for leaving things as they are. The present is our only opportunity. The matter is before the House, and we should have some definite limit upon the time for which this transitory experiment should be continued.
It is pleasant to find times when the fanatical teetotaler and the brewers join hands—and there are others. But I venture to say that the arguments put forward are rather illogical. One of the lessons the War taught us was that private interests were not superior to public interests. In order to win the War we decided to do certain things. One of these things was that the nation should control certain trades in the interests of the public. We all agreed to the restrictions which are being legalised to-night, and being made statutory and almost permanent. One of the best experiments was the taking over of the manufacture and distribution of drink. Of course figures can be brought forward to show there has been more drunkenness in Carlisle than in other weeks and months of previous periods. I read to-night that 500 people were convicted of drunkenness in Greater London during the Bank Holiday; therefore the 7,000,000 population of London has been affected with drunkenness. Figures cannot lie, though liars do figures. The proposition made to-night is not so much for saving the nation trouble, but for safeguarding the interests of private individuals. If there is any advantage in the drink traffic it ought to be under complete public control. Some of us stand for that point of view. If there is any advantage in the organisation of the drink traffic it ought to be controlled from beginning to end. I believe the Carlisle experiment has proved that it is possible for the people to organise its own supply of intoxicating liquor. We have had private enterprise in London which has failed completely to meet the interests of the people. Carlisle has demonstrated the possibility of the social organisation of the trade. I hope that it will be, democratised and that the Carlisle experiment will remain, for it will bear comparison with private enterprise.
If I may be allowed to say one word in reply to the appeal made by my hon. Friend opposite, I should like to observe that we are discussing mere words. If, for example, the term of 12 months were inserted in the Bill it does not in the least follow, as my hon. Friend has asserted, that there would of necessity be a review of the matter at the end of that time. A single" line, or even a word or two, in the Expiring Laws Continuance Bill would get over the difficulty. So that whether you say "until Parliament otherwise determines" or "for a period of two years and no more," control is in either case in the hands of Parliament. My hon. Friend went on to say that the House ought not to be invited to discuss and decide on this matter in the absence of more complete information as to the ultimate intentions of the Government. That criticism, so far as it had point, had point because it assumed that at this stage the Government had already formulated intentions with regard to its ultimate plan in this matter. I am not going to say, in words of almost sacramental efficacy, "Wait and See." I prefer to say, as I do quite frankly say, that it is not in my power to disclose an ultimate intention which has not yet been arrived at.
I think this Amendment is one to which we ought to give effect, and the reason is this: I cannot understand how the maintenance of this so-called experiment can, on any other hypothesis, mean simply more than that a body of officials want to hang on. They had every chance for the experiment, and one got most contradictory views as to the value of it. Personally, I can see no difference between a Liquor Control Board official and an ordinary barman, except that the barman does not enjoy the security of tenure and is
more civil to his customers. I see no reason for continuing it, unless it is to preserve a little oasis to some of the bureaucracy, which we are all so anxious to get rid of, and I think it is only fair that a limitation of time should be put upon it, otherwise the intention at the back of it, the hidden intention at the back of the officials who insist on maintaining their places, is that they shall be present in the hope that some day a nationalised Parliament will be invoked and a nationalised drink trade will follow, when they will say, "We have here all the machinery to take the matter up." You have a Disposal Board and you can hand these assets over to sell to the highest bidder. That is the way to get rid of the experiment. I do not believe in nationalisation. I think we should stamp out the germ of such a proposal. A list of public-houses were put up and the Government thought they would try to make some money out of it, and they made money out of it. But the public-house was not one whit better than the others which were a great deal better. I believe therefore in doing our best to exterminate this nationalisation microbe which is between the borders of two countries. I think the period should be limited to two years, and it should be put an end to in the interests of national efficiency.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 154; Noes, 65.
Division No. 309.] AYES. [2.16 a.m. Amery, Leopold C. M. S. Edge, Captain William Hilder, Lieut.-Colonel Frank Armstrong, Henry Bruce Edwards, C. (Monmouth, Bedwellty) Hinds, John Astor, Viscountess Edwards, Hugh (Glam., Neath) Hirst, G. H. Baird, Sir John Lawrence Elliot, Capt. Walter E. (Lanark) Hohler, Gerald Fitzroy Baldwin, Rt. Hon. Stanley Elliott, Lt.-Col. Sir G. (Islington, W.) Hopkins, John W. W. Barker, G. (Monmouth, Abertillery) Entwistle, Major C. F. Inskip, Thomas Walker H. Barlow, Sir Montague Evans, Ernest Jameson, John Gordon Barnes, Major H. (Newcastle, E.) Eyres-Monsell, Com. Bolton M. Jodrell, Neville Paul Barnston, Major Harry Falle, Major Sir Bertram Godfray John, William (Rhondda, West) Barton, Sir William (Oldham) Fildes, Henry Johnson, Sir Stanley Bell, James (Lancaster, Ormskirk) Fisher, Rt. Hon. Herbert A. L. Johnstone, Joseph Birchall, Major J. Dearman Ford, Patrick Johnston Jones, Sir Edgar R. (Merthyr Tydvil) Blades, Sir George Rowland Fraser, Major Sir Keith Jones, Henry Haydn (Merioneth) Boscawen, Rt. Hon. Sir A. Griffith- Frece, Sir Walter de Jones, J. J. (West Ham, Silvertown) Boyd-Carpenter, Major A. Fremantle, Lieut.-Colonel Francis E. Jones, J. T. (Carmarthen, Lianelly) Breese, Major Charles E. Gange, E. Stanley Kellaway, Rt. Hon. Fredk. George Broad, Thomas Tucker Gee, Captain Robert King, Captain Henry Douglas Brown, T. W. (Down, North) Gibbs, Colonel George Abraham Law, Alfred J. (Rochdale) Buchanan, Lieut.-Colonel A. L. H Gilmour, Lieut.-Colonel Sir John Lewis, Rt. Hon. J. H. (Univ., Wales) Buckley, Lieut.-Colonel A. Graham, R. (Nelson and Colne) Lewis, T. A. (Glam., Pontypridd) Carr, W. Theodore Gray, Major Ernest (Accrington) Lindsay, William Arthur Casey, T. W. Greig, Colonel Sir James William Lloyd-Greame, Sir p. Chamberlain, Rt. Hn. J. A.(Birm., W.) Griffiths, T. (Monmouth, Pontypool) Locker-Lampson, Com. O. (H'tingd'n) Chamberlain, N. (Birm., Ladywood) Grundy, T. W. Lowther, Maj.-Gen. Sir C. (Penrith) Colvin, Brig.-General Richard Beale Hall, F. (York, W.R., Normanton) Lunn, William Cowan, D. M. (Scottish Universities) Harmsworth, C. B. (Bedford, Luton) M'Connell, Thomas Edward Curzon, Captain Viscount Hartshorn, Vernon Mallalieu, Frederick William Davidson, J. C. C. (Hemel Hempstead) Henry, Denis S. (Londonderry, S.) Mason, Robert Davies, Sir William H. (Bristol, S.) Herbert, Dennis (Hertford, Watford) Matthews, David Dewhurst, Lieut.-Commander Harry Hewart, Rt. Hon. Sir Gordon Middlebrook, Sir William Molson, Major John Eisdale Robinson, S. (Brecon and Radnor) Waterson, A. E. Mond, Rt. Hon. Sir Alfred Moritz Roundell, Colonel R. F. Weston, Colonel John Wakefield Montagu, Rt. Hon. E. S. Sanders, Colonel Sir Robert Arthur Wheler, Col. Granville C. H. Moore-Brabazon, Lieut.-Col. J. T. C. Seager, Sir William White, Col. G. D. (Southport) Morgan, Major D. Watts Shortt, Rt. Hon. E. (N'castle-on-T.) Whitla, Sir William Morison, Rt. Hon. Thomas Brash Smith, W. R. (Wellingborough) Williams, Aneurin (Durham, Consett) Morrison-Bell, Major A. C. Stanley, Major Hon. G. (Preston) Williams, C. (Tavistock) Munro, Rt. Hon. Robert Stanton, Charles Butt Wilson, Rt. Hon. J. W. (Stourbridge) Murchison, C. K. Sturrock, J. Leng Wilson, Lt.-Col. Sir M. (Bethnal Gn.) Murray, Dr. D. (Inverness & Ross) Sugden, W. H. Wilson, W. Tyson (Westhoughton) Neal, Arthur Sutherland, Sir William Wintringham, Thomas Newbould, Alfred Ernest Taylor, J. Wise, Frederick Newman, Sir R. H. S. D. L. (Exeter) Thomas, Brig.-Gen. Sir O. (Anglesey) Wood, Hon. Edward F. L. (Ripon) Parker, James Thomas, Sir Robert J. (Wrexham) Wood, Major M. M. (Aberdeen, C.) Parry, Lieut.-Colonel Thomas Henry Thomson, T. (Middlesbrough, West) Worsfold, T. Cato Pease, Rt. Hon. Herbert Pike Thomson, Sir W. Mitchell- (Maryhill) Yeo, Sir Alfred William Pollock, Sir Ernest Murray Thorne, W. (West Ham, Plaistow) Young, E. H. (Norwich) Pratt, John William Tryon, Major George Clement Young, Robert (Lancaster, Newton) Prescott, Major W. H. Wallace, Thomas Brown (West Down) Purchase, H. G. Walton, J. (York. W. R., Don Valley) TELLERS FOR THE AYES.— Rees, Capt. J. Tudor- (Barnstaple) Ward, William Dudley (Southampton) Colonel Leslie Wilson and Mr. Roberts, Frederick O. (W. Bromwich) Ward-Jackson, Major C. L. McCurdy. Roberts, Rt. Hon. G. H. (Norwich) Warren, Sir Alfred H.
NOES. Agg-Gardner, Sir James Tynte Hall, Lieut.-Col. Sir F. (Dulwich) Poison, Sir Thomas A. Ainsworth, Captain Charles Hall, Rr-Adml Sir W. (Liv'p'l-W.D'by) Raffan, Peter Wilson Atkey, A. R. Hannon, Patrick Joseph Henry Ramsden, G. T Balfour, George (Hampstead) Harmsworth, Hon. E. C. (Kent) Raper, A. Baldwin Barnett, Major Richard W. Holbrook, Sir Arthur Richard Remer, J. R. Betterton, Henry B. Hood, Joseph Remnant, Sir James Blair, Sir Reginald Hope, Lt.-Col. Sir J. A. (Midlothian) Roberts, Samuel (Hereford, Hereford) Bowerman, Rt. Hon. Charles W. Home, Edgar (Surrey, Guildford) Rodger, A. K. Bowyer, Captain G. W. E. Hunter, General Sir A. (Lancaster) Rutherford, Colonel Sir J. (Darwen) Brassey, H. L. C. Jones, G. W. H. (Stoke Newington) Rutherford, Sir W. W. (Edge Hill) Bull, Rt. Hon. Sir William James Kelley, Major Fred (Rotherham) Seddon, J. A. Churchman, Sir Arthur Kidd, James Smith, Sir Malcolm (Orkney) Clough, Sir Robert Lort-Williams, J. Steel, Major S. Strang Cope, Major William Macquisten, F. A. Terrell, George (Wilts, Chippenham) Davies, Alfred Thomas (Lincoln) Maddocks, Henry Wild, Sir Ernest Edward Davies, Thomas (Cirencester) Malone, Major P. B. (Tottenham, S.) Willoughby, Lieut.-Col. Hon. Claud FitzRoy, Captain Hon. Edward A. Manville, Edward Wills, Lt.-Col. Sir Gilbert Alan H. Ganzoni, Sir John Nail, Major Joseph Young, Sir Frederick W. (Swindon) Goff, Sir R. Park Norris, Colonel Sir Henry G. Younger, Sir George Gould, James C. Parkinson, Albert L. (Blackpool) Gretton, Colonel John Percy, Lord Eustace (Hastings) TELLERS FOR THE NOES.— Gritten, W. G. Howard Perkins, Walter Frank Major Christopher Lowther and Hallwood, Augustine Pinkham, Lieut.-Colonel Charles Major Murray.
Amendment made: In Sub-section (2), after the word "State" ["Secretary of State"] insert the words
"or the Secretary for Scotland, as the case may require."—[ Sir G. Hewart. ]
CLAUSE 18.—(Repeal of part of s. 13 of 8 & 9 Vict., c. 109.)
In Section thirteen of the Gaming Act, 1845 (which relates to the time when billiard playing is allowed), the following words shall be repealed, that is to say, "and every person holding a victualler's licence who shall allow any person to play at such table, board, or instrument kept on the premises specified in such victualler's licence at any time when such premises are not by law allowed to be open for the sale of wine, spirits, or beer, or other fermented or distilled liquors."
I beg to move to leave out the Clause.
This Clause is in a different position, I think, than almost any other provision of the Bill. It was not considered by the Committee, it is not part of the com- promise. It appears to me to go altogether outside the scope of the matter with which this Bill proposes to deal. This Clause proposes to repeal the Gaming Act, 1845. It materially alters the Licensing Law in a very important respect, and I submit to the House that that is going very much further than it was intended this Bill should do. "When we discussed this matter upstairs, the hon. and gallant Member who was then in charge of the Bill was frank enough to admit that he had not given this matter very much consideration, and he stated that he had simply inserted it because he thought this provision under the Gaming Act, 1845, was an extraordinary provision and he did not know how it got into that Act, suggesting that it was a matter which was not very fully considered then. Since the Committee I have looked up the Act of 1845, and I find that this Measure was regarded by Parliament at that time as a very important Measure. The Act is to amend the laws concerning games and wagers, and it says:
I think I have, at any rate, established that so far from this being a Measure which the hon. and gallant Member so impugned upstairs, it was a Measure which apparently had been considered. It was the only Measure which has been passed effectively dealing with gaming since the days of Henry VIII. Since 1845, and up to the present time, there has been no suggestion that there was any public desire for any repeal of this Act. It has been the standard with regard to gaming for the whole of that period, and I do suggest that it is perfectly improper in a Bill of this kind, not dealing with gaming, but dealing with an entirely different question, with licensing, to introduce an alteration in this matter.
What do the Government propose to do? They propose to repeal the provisions of the Act of 1845, which states that, in the premises of licensed victuallers, billiards shall not be played except during the hours in which it is proper for the premises to be kept open for the sale of drink. From 1845 onwards it has been thought desirable to have such a provision in order to secure proper supervision of the house. Licensed victuallers made no objection to that proposal. They have recognised that it was right, and proper, and reasonable. I should be surprised if the right hon. Gentleman could say that there is any widespread feeling among the minds of the licensed trade for this alteration to be made in their behalf. It is perfectly true that it is not allowed to play billiards from 1 o'clock in the morning until 8 o'clock, but, with that exception, what the Government proposes to do is for the whole of those hours to make it possible for a person to play billiards on licensed premises. [HON. MEMBERS: "Agreed, agreed!"] I was hoping that I might deal with this subject so as not to make it unduly dull. I submit that we ought not, at half-past 2 o'clock in the morning, to repeal a portion of the Gaming Act, 1845. It requires much longer consideration.
Good old Tory!
I am very glad to have that testimonial from my hon. Friend. He has been a member of so many political parties during the last few years—
Not yours.
—that testimonials from him are peculiarly valuable. I make no apology to this House for desiring to preserve on the Statute Book any Measure which has worked well, and which has been found to be useful. I have never been one of those who desired change for the sake of change. I submit this to the House, in all seriousness. There are many licensing magistrates here; some of them took part in the discussion on this matter in Committee upstairs. They pointed out the great difficulty of proper supervision if licensed premises are to be allowed to be open in this way. I should like to point out that, when we were dealing with the Shops Act, we did not proceed in this way. It is all very well to say that it does not matter, but when this House discussed the Shops Act a good case was brought forward on behalf of the small shopkeeper, who does not employ shop assistants. We were told also that that Act was needed to protect shop assistants. Very well, protect shop assistants if you will, but do not compare them to the small shopkeepers, the ex-service men, whose shops do not open for a great deal of the day and close at an early hour of the evening. The hon. Member for Hanley (Mr. Seddon) made a speech on that occasion. The result of that legislation has been that the woman and the widow of the. ex-service man cannot sell lemonade, ginger beer and cigarettes after 8 o'clock. But the Government are proposing here to put the licensed victualler in a different class. The licensed victualler need not close; his house can be kept open. I should not object very much to that if it applied to the morning or the afternoon, but when you come to 10 or 11 o'clock or even midnight, then I say that licensed premises should not be open for any purpose whatever. They will make great difficulties for the police and for everyone else.
I beg to second the Amendment. I would be the last to do anything that would tend to eclipse the gaiety of nations. After all, there are Tories and Tories, and there must be very good reason shown for the repeal of Acts of Parliament deliberately passed so long ago as the Act of 1845. I have sufficient of the Tory in me to examine the whole matter very closely before anything of the sort is done, because, like my hon. Friend, Mr, Raffan, I do not believe in repealing Acts just for the fun of it, and I do believe that our forefathers showed some very good reason for preventing billiards from being played in public-houses after the hours of closing. What does it mean? It simply means that drink will be sold after the hours at which Parliament has said licensed premises shall not be open. The publican who has got billiards on his premises will be placed at a great advantage as compared with the publican who has not got a billiard room. You would require to have policemen stationed on these premises all night, and that would be, from the anti-waste point of view, a very strong argument against this proposal.
I had no intention of intervening in this Debate had it not been for the observations of the hon. Member for Leigh (Mr. Raffan), who tried to make out that because I took up a point of view on the Shops Bill, I ought to support him on this particular Amendment. There is no analogy between the shop assistants and the question we have been discussing. A shop assistant may have to work all the hours the law allows, and he may be a billiard expert, but if my hon. Friend's contention be carried out, the poor shop assistant will not be able to play billiards, because the billiard room is closed, as it belongs to a public house.
Under the Gaming Act of 1345 billiards were not allowed to be played, so far as licensed premises were concerned, except during the hours when drink could be served. When the Liquor Control Board appeared on the scene, the hours of opening were 19 in London and 16 in the country, and 16½ or 17 in populous places. The Liquor Control Board made the hours of opening five and a half. The result would have been that billiards could only have been played for five and a half hours on licensed premises. That would have been an extremely inconvenient state of affairs and not very fair. It would have deprived people of a great deal of innocent recreation. The result was that the Liquor Control Board issued a Regulation which had precisely the effect of the Clause which I am now asking the House to agree to. People may hold up their hands in horror at billiards being played up to one o'clock in the morning, but they should remember that there is no compulsion. It seems unfortunate to deprive people of an innocent enjoyment which has not had the disastrous effects mentioned during the War and for two years after. This Clause is merely giving statutory sanction to a provision of the Liquor Control Board which has been found to work well.
Amendment negatived.
CLAUSE 19.—(Definitions.)
For the purposes of this Act—
The expression "club" means registered club;
The expression "metropolis" means the Administrative County of London, with the addition of any area which, though not within the Administrative County of London, is within the four-mile radius from Charing Cross;
The expression "permitted hours" means the hours on any day during which intoxicating liquor may be sold or supplied in any licensed premises or club; and
The expression "conclusion of the permitted hours" means the end of the period in the afternoon or evening (as the case may he) during which the sale or supply of intoxicating liquor for any purpose is permitted.
I beg to move to leave out the words
No one wants to see that system continued. We want to see it ended as soon as possible. There used to be a regular exodus from the outer area into the inner area for the purpose of having another one-and-a-half hours. We had the "boosers' " 'bus and the "drunkards' " tram. Between half-past twelve and half-past one in the morning you had the biggest number of arrests for drunkenness. This system of differentiation is going to lead to the same results again. So far as we are concerned, we are asking that the area should be the Metropolitan area. Twelve miles from Charing Cross is the Metropolitan area. What is going to be the consequences of what is contained in this Bill? It is going to mean the recrudescence of the old system, if in the outer ring you are to have houses closing at ten, and in the inner area at eleven. You are going to have your old system of people travelling from the outer area into the inner area for the sake of the extra hour, and people going back drunk. You are not helping temperance by this, and our Amendment is to have the hours fixed all over the area, so that people will not come in from one place to another for the sake of the extra drink. Let us take the case of men who are working overtime in the West End, and whose homes are in the East End. They stop in the inner area until the houses close. If the houses were open for the same length of time in the outer area they would go home, and have less chance of losing time in the morning. London is absolutely one great city. Although one may be living outside the exact administrative area of the County of London, one's work depends on London itself, and we think the hours ought to be the same for this purpose.
I beg to second the Amendment.
I cannot help thinking that my hon. Friend who is proposing to alter this definition has overlooked the fact that we are not introducing a narrower definition of "Metropolis," but are reproducing the definition contained in the Licensing (Consolidation) Act, 1910. Under that Act "Metropolis" means the Administrative County of London, with the addition of any area which, though not within the Administrative County of London, is within four miles of Charing Cross. We follow those words precisely. This part of the Bill, like most of the Bill, is the result of compromise and agreement. We had a long discussion upon this element in the Bill, and at length we left it as it is. I hope that it will be allowed to remain. The matter was further considered in the Committee upstairs, and that Committee
came to the conclusion that the definition should be retained.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 167; Noes, 23.
Division No. 310.] AYES. [2.56 a.m. Agg-Gardner, Sir James Tynte Hall, Lieut.-Col. Sir F. (Dulwich) Parkinson, Albert L. (Blackpool) Ainsworth, Captain Charles Hall, F. (York, W.R., Normanton) Parry, Lieut.-Colonel Thomas Henry Armstrong, Henry Bruce Hall, Rr-Adml Sir W. (Liv'p'l, W.D'by) Pease, Rt. Hon. Herbert Pike Astor, Viscountess Hannon, Patrick Joseph Henry Percy, Lord Eustace (Hastings) Atkey, A. R. Hennessy, Major J. R. G. Perkins, Walter Frank Baird, Sir John Lawrence Henry, Denis S. (Londonderry, S.) Pollock, Sir Ernest Murray Baldwin, Rt. Hon. Stanley Herbert, Dennis (Hertford, Watford) Pratt, John William Balfour, George (Hampstead) Hewart, Rt. Hon. Sir Gordon Prescott, Major W. H. Barlow, Sir Montague Hilder, Lieut.-Colonel Frank Purchase, H. G. Barnes, Major H. (Newcastle, E.) Hinds, John Raffan, Peter Wilson Barnett, Major Richard W. Hirst, G. H. Ramsden, G. T. Barnston, Major Harry Holbrook, Sir Arthur Richard Raper, A. Baldwin Barton, Sir William (Oldham) Hope, Lt.-Col. Sir J. A. (Midlothian) Rees, Capt. J. Tudor- (Barnstaple) Bell, James (Lancaster, Ormskirk) Hopkins, John W. W. Remer, J. R. Betterton, Henry B. Home, Edgar (Surrey, Guildford) Roberts, Frederick O. (W. Bromwich) Birchall, Major J. Dearman Inskip, Thomas Walker H. Robinson, S. (Brecon and Radnor) Blades, Sir George Rowland Jameson, John Gordon Rodger, A. K. Boscawen, Rt. Hon. Sir A. Griffith- Jodrell, Neville Paul Roundell, Colonel R. F. Bowyer, Captain G. W. E. John, William (Rhondda, West) Rutherford, Sir W. W. (Edge Hill) Breese, Major Charles E. Johnson, Sir Stanley Sanders, Colonel Sir Robert Arthur Broad, Thomas Tucker Johnstone, Josepn Seager, Sir William Brown, T- W. (Down, North) Jones, Sir Edgar R. (Merthyr Tydvil) Shortt, Rt. Hon. E. (N'castle-on-T.) Buchanan, Lieut.-Colonel A. L. H. Jones, Henry Haydn (Merioneth) Smith, Sir Malcolm (Orkney) Buckley, Lieut.-Colonel A. Jones, J. T. (Carmarthen, Lianelly) Smith, W. R. (Wellingborough) Carr, W. Theodore Kellaway, Rt. Hon. Fredk. George Stanley, Major Hon. G. (Preston) Casey, T. W. Kidd, James Stanton, Charles Butt Chamberlain, Rt. Hn. J. A. (Birm. W.) Kiley, James Daniel Sturrock, J. Leng Chamberlain, N. (Birm., Ladywood) King, Captain Henry Douglas Sugden, W. H. Churchman, Sir Arthur Law, Alfred J. (Rochdale) Sutherland, Sir William Clough, Sir Robert Lewis, Rt. Hon. J. H. (Univ., Wales) Thomas, Sir Robert J. (Wrexham) Colvin, Brig.-General Richard Beale Lindsay, William Arthur Thomson, T. (Middlesbrough, West) Cowan, D. M. (Scottish Universities), Lloyd-Greame, Sir P. Thomson, Sir W. Mitchell- (Maryhill) Davidson, J. C. C. (Hemel Hempstead) Locker-Lampson, Com. O. (H'ting d'n) Tryon, Major George Clement Davies, Thomas (Cirencester) Lowther, Maj.-Gen. Sir C. (Penrith) Wallace, Thomas Brown (West Down) Davies, Sir William H. (Bristol, S.) Lunn, William Walton, J. (York, W. R., Don Valley) Dewhurst, Lieut.-Commander Harry M'Connell, Thomas Edward Ward, William Dudley (Southampton) Edge, Captain William Maclean, Rt. Hon. Sir D. (Midlothian) Warren, Sir Alfred H. Edwards, C. (Monmouth, Bedweilty) Mallalieu, Frederick William Waterson, A. E. Elliot, Capt. Walter E. (Lanark) Mason, Robert Wheler, Col. Granville C. H. Eyres-Monsell, Com. Bolton M. Middlebrook, Sir William White, Col. G. D. (Southport) Falle, Major Sir Bertram Godfray Molson, Major John Elsdale Whitla, Sir William Fisher, Rt. Hon. Herbert A. L. Mond, Rt. Hon. Sir Alfred Moritz Williams, Aneurin (Durham, Consett) FitzRoy, Captain Hon. Edward A. Montagu, Rt. Hon. E. S. Williams, C. (Tavistock) Ford, Patrick Johnston Moore-Brabazon, Lieut.-Col. J. T. C. Wills, Lt.-Col. Sir Gilbert Alan H. Fraser, Major Sir Keith Morgan, Major D. Watts Wilson, Rt. Hon. J. W. (Stourbridge) Frece, Sir Walter de Morison, Rt. Hon. Thomas Brash Wintringham, Thomas Fremantle, Lieut.-Colonel Francis E. Morrison-Bell, Major A. C. Wise, Frederick Gange, E. Stanley Munro, Rt. Hon. Robert Wood, Major M. M. (Aberdeen, C.) Ganzoni, Sir John Murchison, C. K. Yeo, Sir Alfred William Gee, Captain Robert Murray, Dr. D. (Inverness and Ross) Young, E. H. (Norwich) Gibbs, Colonel George Abraham Murray, William (Dumfries) Young, Sir Frederick W. (Swindon) Gilmour, Lieut.-Colonel Sir John Nail, Major Joseph Young, Robert (Lancaster, Newton) Goff, Sir R. Park Neal, Arthur Younger, Sir George Greig, Colonel Sir James William Newbould, Alfred Ernest Griffiths, T. (Monmouth, Pontypool) Newman, Sir R. H. S. D. L. (Exeter) TELLERS FOR THE AYES.— Grundy, T. W. Norris, Colonel Sir Henry G. Colonel Leslie Wilson and Mr. Hailwood, Augustine Parker, James McCurdy.
NOES. Barker, G. (Monmouth, Abertillery) Gretton, Colonel John Pinkham, Lieut.-Colonel Charles Blair, Sir Reginald Gritten, W. G. Howard Roberts, Rt. Hon. G. H. (Norwich) Bowerman, Rt. Hon. Charles W. Hunter, General Sir A. (Lancaster) Roberts, Samuel (Hereford, Hereford) Boyd-Carpenter, Major A. Jones, G. W. H. (Stoke Newington) Seddon, J. A. Bull, Rt. Hon. Sir William James Lort-Williams, J. Ward-Jackson, Major C. L. Cope, Major William Lowther, Major C. (Cumberland, N.) Curzon, Captain Viscount Macquisten, F. A. TELLERS FOR THE NOES.— Foreman, Sir Henry Malone, Major P. B. (Tottenham, S.) Mr. William Thorne and Mr. John Gray, Major Ernest (Accrington) Martin, A. E. Jones.
Amendments made: After the word "means" [" 'permitted hours' means"], insert the words "as respects any licensed premises or club."
Leave out the words "in any licensed premises or club" ["or supplied in any licensed premises or club"], and insert instead thereof the word "therein."—[ Sir G. Hewart. ]
CLAUSE 20.—(Application to Scotland and Ireland.)
(1) This Act shall apply to Scotland subject to the following modifications: —
( a ) The Secretary for Scotland shall, unless the context otherwise requires, be substituted for the Secretary of State; "intoxicating liquor" shall mean "exciseable liquor"; "licence" and "justices' licence" shall mean a certificate as defined in Part VII of the Licensing (Scotland) Act, 1903; "licensing justices" shall mean licensing court; a reference to a licensing district shall be construed as a reference to any burgh, county, or district for which there is a separate licensing court; references to the annual general licensing meeting and to transfer sessions shall be construed respectively as references to the April and the October half yearly meetings of a licensing court, and references to the Licensing (Scotland) Acts, 1903 to 1913, shall be substituted for references to the Licensing (Consolidation) Act, 1910;
Amendment made: In Sub-section (1, a ), after the word "State" ["Secretary of State"], insert the words " 'real' shall mean 'heritable'; 'personal' shall mean 'moveable.' "—[ Mr. Munro. ]
I beg to move, in Sub-section (1), after paragraph (a), to insert a new paragraph—
"( b ) Proviso ( b ) of Sub-section (1) of Section (1) of this Act shall not apply."
I am sorry to ask the House to consider the case of Scotland for a few minutes. If the Members will look at the Clause of the Bill they will see that my Amendment would propose to make paragraph ( b ) not apply to Scotland. Scotland has always been treated separately in matters of licensing and I think this is the first occasion upon which both countries have been dealt with in the same manner. In asking the House to differentiate between Scotland and England in this matter I am not in any way departing from an agreement made at the Conference, because unfortunately, and I think it was an oversight, Scotland was not represented at that Conference because although we had two Members representing Scotland they both adopted the same attitude on this particular question and therefore I think it is fair to say that the case of Scotland as far as the temperance advocates was concerned was never put to the Conference at all. At present the closing hour in Scotland is 9 o'clock all over. [HON. MEMBERS: "No!"] It has been that during the War, and before the War it was 10 o'clock. Now, the experience of the War has led us all to admit that the restriction of drink hours both in Scotland and England has been good. [HON. MEMBERS: "No!"] I think it is the general consensus of opinion. Now, for something like 20 years in Scotland there is no public-house open after 10 o'clock at night. In spite of that this Bill proposes to give the justices powers to allow houses in certain districts to remain open beyond 10 o'clock to 10.30. Surely if in Scotland 10 o'clock has been universally adopted and welcomed as the proper closing hour for licensed premises, it is an hour that should be adopted here and made statutory for all time as far as this particular Parliament can make it so. I am sure the Government cannot mean to extend the drink hour in Scotland. That is what they are doing here, and I hope the Government will accept this very small Amendment and put the matter right.
I beg to second this Amendment, and to point out that if it be not passed, you are by this provision doing what is done in no other Section of the Bill. You are worsening the position as compared with 1914. If my right hon. Friend for Scotland is able to discover any other portion of the Bill that does worsen the position, I shall be glad to have it pointed out. If you compare the present position with the pre-War position in the treatment of the limitation of hours, Scotland will be put in a worse position. I do not think that can be possibly defended. I have put down later an Amendment by which, with stronger justification, the present hour of 9 o'clock should be maintained as the permanent hour. If we do not press that proposal, for which I think a very strong case could be made out, I hope the Secretary for Scotland may be able to meet us with regard to this matter. There is no demand from any part of Scotland for it.
I am very anxious at this hour to save the time of the House, and I shall detain the House for only a couple of minutes, to deal with the matter which has been moved. I want to correct an impression created by both the Mover and Seconder of the Amendment that an innovation is being introduced which does not exist in Scotland to-day.
I did not say that.
I thought my hon. Friends were under the impression that an additional half-an-hour would be imposed upon Scotland. I want to point out to both my hon. Friends with the greatest respect the existing law in Scotland. Under the 1903 Act the hour is not earlier than 10, and not later than 11, as the Licensing Court may direct. Under the new proposal, so far from there being any extension of licensing, it is a restriction. I do not want to argue the question at length and provoke discussion. If my hon. Friend for Leigh (Mr. Raffan), after the observations he has made, will withdraw his Amendment, I am prepared, on behalf of the Government, to accept the Amendment of my hon. and gallant Friend the Member for Aberdeen.
I protest against this on the ground that I withdrew my Amendment which would have removed an injustice in another direction. I understood that the Government were going to stand firm with regard to Scotland to the terms of the Bill. .The Secretary for Scotland, at the commencement of his speech, showed that in Scotland the hours are being reduced; yet he has agreed to this Amendment. I hope he will reconsider that and leave Scotland in the same place as proposed under the Bill. Scotland has already got its own temperance legisla-
tion which gives local option under the 1913 Bill. The result has been that Scotland has not been so keen for temperance. You have polls all over Scotland, and hardly a single area supported the extreme temperance party. Now you turn round and because you cannot get extreme temperance, "dry," and the abolition of licenses for the people of Scotland, you want to get it under this Bill. You cannot have the best of both worlds. I suggest that the Secretary for Scotland sticks to the terms of the Bill, and I shall certainly be tempted to divide against this Amendment.
I rise to support the position of my hon. Friend opposite (Sir J. Hope). I have consistently supported the Government to-night on this Bill on the basis that it was a compromise Measure, and that there would be no deviation from the course of policy adopted. I do hope the Secretary for Scotland will stick by the terms of the Bill, and not give way to demands which do not represent the real opinion in Scotland. I do not think my hon. and gallant Friend represents the opinion of Aberdeenshire. My hon. Friend for Leigh is an absentee, and his only claim to speak is as a prospective candidate for a Scottish seat, and he has no right to speak in the cause of the people of Scotland whatsoever. We have had our own Act in operation last year, and the trade has a perfect right—and I make no apology for stating the position—to say to the House that they have gone through the experience of the Scottish Local Veto Act last year, and they ought to be given an assured position now. The people of Scotland are perfectly well able to look after themselves in this matter. I hope this House, at this late hour, will not come to any decision which is unfair to all the interests concerned, and I appeal to my right hon. Friend to stand by the Bill.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 58; Noes, 122.
Division No. 311.] AYES. [3.20 a.m. Astor, Viscountess Broad, Thomas Tucker Hall, F. (York, W.R., Normanton) Baird, Sir John Lawrence Chamberlain, Rt. Hn. J. A. (Birm. W.) Hewart, Rt. Hon. Sir Gordon Baldwin, Rt. Hon. Stanley Cowan, D. M. (Scottish Universities) Hirst, G. H. Barlow, Sir Montague Edwards, C. (Monmouth, Bedwelity) Inskip, Thomas Walker H. Barnes, Major H. (Newcastle, E.) Falle, Major Sir Bertram Godfray John, William (Rhondda, West) Barton, Sir William (Oldham) Gee, Captain Robert Johnstone, Joseph Betterton, Henry B. Greig, Colonel Sir James William Jones, Sir Edgar R. (Merthyr Tydvil) Birchall, Major J. Dearman Griffiths, T. (Monmouth, Pontypool) Jones, Henry Haydn (Merioneth) Jones, J. T. (Carmarthen, Lianelly) Munro, Rt. Hon. Robert Thomson, T. (Middlesbrough, West) Kellaway, Rt. Hon. Fredk. George Murray, Dr. D. (Inverness & Ross) Tryon, Major George Clement Lewis, Rt. Hon. J. H. (Univ., Wales) Neal, Arthur Waterson, A. E. Locker-Lampson, Com. O. (H'tingd'n) Newbould, Alfred Ernest Williams, Aneurin (Durham, Consett) Lunn, William Parker, James Wilson, Rt. Hon. J. W. (Stourbridge) M'Connell, Thomas Edward Parry, Lieut.-Colonel Thomas Henry Wintringham, Thomas Maclean, Rt. Hon. Sir D. (Midlothian) Pease, Rt. Hon. Herbert Pike Young, E. H. (Norwich) Mallalieu, Frederick William Pratt, John William Young, Robert (Lancaster, Newton) Mond, Rt. Hon. Sir Alfred Moritz Robinson, S. (Brecon and Radnor) Montagu, Rt. Hon. E. S. Rodger, A. K. TELLERS FOR THE AYES.— Moore-Brabazon, Lieut.-Col. J. T. C. Shortt, Rt. Hon. E. (N'castle-on-T.) Major Mackenzie Wood and Mr. Morgan, Major D. Watts Sutherland, Sir William Raff an. Morison, Rt. Hon. Thomas Brash Thomas, Sir Robert J. (Wrexham)
NOES. Agg-Gardner, Sir James Tynte Gritten, W. G. Howard Perkins, Walter Frank Ainsworth, Captain Charles Grundy, T. W. Pinkham, Lieut.-Colonel Charles Armstrong, Henry Bruce Hailwood, Augustine Pollock, Sir Ernest Murray Atkey, A. R. Hall, Rr-Adml Sir W. (Liv'p'l.W.D'by) Prescott, Major W. H. Balfour, George (Hampstead) Hannon, Patrick Joseph Henry Purchase, H. G. Barker, G. (Monmouth, Abertillery) Hennessy, Major J. R. G. Ramsden, G. T. Barnett, Major Richard W. Henry, Denis S. (Londonderry, S.) Raper, A. Baldwin Barnston, Major Harry Herbert, Dennis (Hertford, Watford) Rees, Capt. J. Tudor- (Barnstaple) Bell, James (Lancaster, Ormskirk) Hilder, Lieut.-Colonel Frank Remer, J. R. Blades, Sir George Rowland Hinds, John Roberts, Frederick O. (W. Bromwich) Blair, Sir Reginald Holbrook, Sir Arthur Richard Roberts, Rt. Hon. G. H. (Norwich) Boscawen, Rt. Hon. Sir A. Griffith- Hood, Joseph Roberts, Samuel (Hereford, Hereford) Bowerman, Rt. Hon. Charles W. Hopkins, John W. W. Rounded, Colonel R. F. Bowyer, Captain G. W. E. Hunter, General Sir A. (Lancaster) Rutherford, Sir W. W. (Edge Hill) Boyd-Carpenter, Major A. Jameson, John Gordon Sanders, Colonel Sir Robert Arthur Breese, Major Charles E. Jodrell, Neville Paul Seager, Sir William Brown, T. W. (Down, North) Johnson, Sir Stanley Seddon, J. A. Buchanan, Lieut.-Colonel A. L. H. Jones, G. W. H. (Stoke Newington) Smith, W. R. (Welling borough) Bull, Rt. Hon. Sir William James Jones, J. J. (West Ham, Silvertown) Stanley, Major Hon. G. (Preston) Carr, W. Theodore Kidd, James Stanton, Charles Butt Casey, T. W. King, Captain Henry Douglas Sugden, W. H. Chamberlain, N. (Birm., Ladywood) Law, Alfred J. (Rochdale) Thomson, Sir W. Mitchell- (Maryhill) Churchman, Sir Arthur Lewis, T. A, (Glam., Pontypridd) Thorne, W. (West Ham, Plaistow) Clough, Sir Robert Lindsay, William Arthur Wallace, Thomas Brown (West Down) Colvin, Brig.-General Richard Beale Lort-Williams, J. Walton, J. (York, W. R., Don Valley) Cope, Major William Lowther, Major C. (Cumberland, N.) Ward-Jackson, Major C. L. Curzon, Captain Viscount Lowther, Maj.-Gen. Sir C. (Penrith) Warren, Sir Alfred H. Davidson, J. C. C.(Hemel Hempstead) McCurdy, Rt. Hon. Charles A. Wheler, Col. Granville C. H. Davies, Alfred Thomas (Lincoln) Macquisten, F. A. White, Col. G. D. (Southport) Davies, Thomas (Cirencester) Malone, Major P. B. (Tottenham, S.) Whitla, Sir William Davies, Sir William H. (Bristol, S.) Martin, A. E. Wild, Sir Ernest Edward Dewhurst, Lieut.-Commander Harry Mason, Robert Williams, C. (Tavistock) Elliot, Capt. Walter E. (Lanark) Middlebrook, Sir William Wills, Lt.-Col. Sir Gilbert Alan H. Eyres-Monsell, Com. Bolton M. Molson, Major John Eisdale Wilson, Colonel Leslie O. (Reading) Fisher, Rt. Hon. H. A. L. Morrison-Bell, Major A. C. Wise, Frederick Ford, Patrick Johnston Murchlson, C. K. Yeo, Sir Alfred William Foreman, Sir Henry Murray, William (Dumfries) Young, Sir Frederick W. (Swindon) Fraser, Major Sir Keith Nail, Major Joseph Younger, Sir George Gange, E. Stanley Newman, Sir R. H. S. D. L. (Exeter) Gibbs, Colonel George Abraham Norris, Colonel Sir Henry G. TELLERS FOR THE NOES.— Gilmour, Lieut.-Colonel Sir John Parkinson, Albert L. (Blackpool) Lieut.-Colonel Sir John Hope and Goff, Sir R. Park Percy, Lord Eustace (Hastings) Mr. Sturrock.
Third Schedule
[Extract from the Defence of the Realm (Liquor Control) Regulations, 1915]
10. The Board shall have power, on any premises in which business is carried on by them or on their behalf, to provide or authorise the provision of such entertainment or recreation for persons frequenting the premises as the Board think fit, and where such provision is made or such authority is given no licence shall be necessary, and no restrictions imposed by law on the provision of the entertainment or recreation in question shall apply, except to such extent, if any, as the Board may direct.
The Amendments to Schedule 3 are out of order.
On a point of Order. With reference to my Amendment, which I understand you have not called, I stated that I would withdraw it if the Government accepted my previous Amendment. The Government did not put on their Whips, and I do not consider that that is an acceptance of my Amendment.
I have nothing to do with that. I consider that the House has come to a decision on the matter. The Amendments to Schedule 3 cannot be dealt with, because we have already decided, on Clause 15, that the Regulations of the Liquor Control Board (Liquor Traffic) in that respect shall be continued. Therefore it would not be in order to press this Amendment.
On a point of Order. Clause 15 says:
"Such of the said Regulations as are contained in the extract therefrom which is set out in the Third Schedule to this Act are hereby continued in force …"
Therefore, surely it is competent to move to omit any one of them.
We cannot amend the Regulations.
On a point of Order. May I state that in Committee a Regulation was withdrawn. Therefore, if this Amendment be out of order, it is competent to the Committee to take action which is not competent to the House.
The Regulation taken out in Committee was a complete Resolution, and it was not sought to amend a Regulation.
Do I understand that the hon. and gallant Member (Major M. Wood) wishes to move to leave out paragraph 10?
Yes, Sir.
Then he is proposing to move to leave out a complete Regulation. That is all right, but he should have made his Amendment read from line 33, not line 31.
I beg to move, "to leave out paragraph 10."
The point I want to make can be put in a sentence. Paragraph 10 in the Third Schedule proposes to continue a Regulation made under the Defence of the Realm Act. That will give power to the Board to have entertainments in their houses and not to be subject to the ordinary law to which every licensed house is amenable. There should be no differentiation between public-houses of one kind and another, This is not a temperance question at all. It is a question of whether you should give a special preference to one kind of public-house. I suggest that there should be no preference. Not only so, but by giving this special privilege you are taking away from the licensing justices the power to control law and order in their area. There is no reason for continuing this particular Regulation, and my Amendment will in no way spoil the Carlisle experiment.
I beg to second the Amendment. We are giving a chance to the Attorney-General to translate into acts the good intention to which he gave expression a short time ago.
I do not quite follow the appeal which has been made to my alleged good intentions. The House has already decided, quite emphatically, that the experiment at Carlisle is to be continued, for a time at any rate, under the authority of the Home Secretary, and similar districts in Scotland are to be controlled for a time under the Secretary for Scotland. With reference to Carlisle, what is proposed to be omitted is Regulation No. 10 which secures that the authority which is managing the licensed houses in that area shall have power to provide entertainment in those premises. That has been done during the whole period of the Central Control Board's regime, and I cannot understand why, if we are to continue this experiment, the Home Office should be in a position of inferiority to that which the Central Control Board has enjoyed. The only objection in the way of argument which I have heard was that it was wrong that State management of these licensed premises should be dispensed from the obligation of going to local authorities for licences for entertainments. Yes; but why is application of that kind made to local authorities? It is because those authorities are the protectors of public safety, public morals, and public order. If you assume that it has been decided, as it has been decided, to continue the experiment, it would be grotesque not to continue these powers in the Home Office.
If it comes to a question of grotesqueness, there is something very grotesque in the defence by a member of the Government of the fundamental fallacy of Socialism, that a thing run by the State is not to be subject to the ordinary laws of the land. The local guardians, no doubt, have the right to look after local order, but one can imagine a case in which the authority of the State would come into conflict with the desires of the local authority to promote good order. The Attorney-General has not answered the question asked: Is the State scheme to be put in a position of superiority to a scheme of private enterprise? It is a simple question and deserves an answer.
Amendment negatived.
Fourth Schedule
Provisions Relating to the Transfer Op Powers, Property, Etc
1. In the construction and for the purposes of any judgment, decree, order, award, deed, contract, or, other document delivered, executed, or made before the transfer to the new authority of any powers or duties, the name of the new authority shall be substituted for the name of the Board or of the trustees of the Board.
Amendment made: At the beginning of paragraph 1, insert the words
"All rights and liabilities of the Board, whether arising under any contract or otherwise, shall be enforceable by or against the new authority, and."—[ Sir G. Hewart. ]
Motion made, and Question proposed, "That the Bill be now read the Third time."
On behalf of the Whole House, I desire to tender to the Attorney-General our thanks for the unfailing tact, the exquisite good humour, and the consummate ability with which he has conducted this most difficult and complex problem to a successful conclusion. This Measure originated from the conclusion, at which everybody had arrived, that the operations of the Control Board must come to an end, and that there must be some agreed measure of temporary statutory stabilisation. I want to make it clear, however, as far as I am concerned, and those for whom I speak, that we in no way regard this as a fulfilment of the pledge of the Government with regard to the licensing question, and that there are very many most important subjects which are not even hinted at in the present Measure. There is, for instance, the question of young persons and intoxicating liquor. I want to make it clear that, while we have given our support to this Measure, we hold our hands entirely free with regard to the whole question of legislation upon this difficult and most complex problem.
I want to say only one word at the conclusion of this Debate, and that is to protest against what has occurred this evening upon the last Amendment, proposed by my hon. and learned Friend, and accepted by the Government. The Secretary for Scotland and Members of the Government broke the agreement and voted in the Opposition Lobby. That ought not to occur in Parliament, and I hope it will not occur again.
May I thank my right hon. Friend the Member for Peebles (Sir D. Maclean) for the far too generous expressions which he has used? If this Bill—a modest and useful instalment of licensing reform—has had an easy passage, it is due to two things, and two things only. One is the good sense and good temper of the members of the Round Table Conference and the other the exhibition of these same qualities by this House to-night. For my own part I am deeply grateful to everyone concerned.
May I ask what is the position of certain clubs under this Bill—clubs for newspaper workers and other men working at night? Such a club has been established in Fleet Street for some years and has between 600 and 700 members. It starts at 6 o'clock in the evening. Men come in at 9 o'clock for supper and again after the papers go to press at 12.30 or 1 o'clock in the morning, when the men have necessary food. What would be the position of that club?
There will be no difficulty in the position of that club. It will be in a like position to that of the clubs spoken of during the Debate. Sections 55 and 57 of the Licensing Consolidation Act, 1910, are adapted to the Bill by one of the Schedules of the Bill.
I would like to congratulate the Attorney-General, and to say that hon. Members who are interested in temperance do not consider this in any way a temperance Bill. It is just a wise Measure taken by the Government, and by all concerned, to preserve some of our War gains—national gains in the War. Nobody will deny that. I hope that the Government will not think that by passing this Measure people interested in the temperance question will consider this in any way a hindrance to a larger temperance Measure which the Government will bring forward later on. The House has been most good-humoured, and I rejoice that we had this after dinner rather than before, because I notice that the House is more good-natured after dinner than before. I congratulate them on that. The Attorney-General has been most conciliatory, and it shows that, if we are willing, we can get on if we are really thinking of the country.
Question put, and agreed to.
Bill read the Third time, and passed.
Navy and Air Expenditure, 1919–1920
"That this House will this day resolve itself into a Committee to consider the surpluses and deficits upon Navy and Air Grants for 1919–20, and the application of surpluses to meet expenditure not provided for in the Grants for that year.—[ Colonel Leslie Wilson. ]
Ordered, That the Appropriation Accounts for the Navy and Air Departments, which were presented upon the 17th March and 22nd March last, be referred to the Committee.—[ Colonel Leslie Wilson. ]
The remaining Orders were read, and postponed.
Whereupon Mr. Speaker adjourned the House, without Question put, pursuant to the Order of the House of 26th July.
Adjourned at Fourteen Minutes before Four o'clock a.m.