House of Commons
Thursday, August 11, 1921
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Coventry Corporation Bill,
shire County Council (Drainage) Bill,
Lords Amendments considered, pursuant to the Order of the House of 10th August, and agreed to.
Manchester Corporation (General Powers) Bill [ Lords ],
Motion made, and Question proposed, "That the Bill be now read the Third time."
Question amended, by leaving out from the word "be," to the end of the Question, and adding the words "re-committed to the former Committee in respect of Clause 61,"℄[ Captain Viscount Curzon ]℄instead thereof, and, as amended, agreed to.
Ordered, That the Bill be re-committed to the former Committee in respect of Clause 61.
Ordered, That it be an Instruction to the Committee on the re-committed Bill that they strike out Clause 61.℄[ Captain Viscount Curzon. ]
Slough Trading Company, Limited (Canal), Bill [ Lords ],
Read the Third time, and passed, with Amendments.
Rhymney and Aber Valleys Gas and Water Bill [ Lords ],
Considered; to be read the Third time.
Ministry of Health Provisional Orders (No. 8) Bill,
Lords Amendments considered, and agreed to.
Glasgow University (Dundonald Bursaries) Order Confirmation Bill [ Lords ],
Considered; to be read the Third time To-morrow.
Stirlingshire and Falkirk Water Order Confirmation Bill,
Read a Second time; and ordered to be considered To-morrow.
North British Railway (Burntisland Harbour Transfer) Order Confirmation Bill,
"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to North British Railway (Burntisland Harbour Transfer)," presented by Mr. MUNRO; and ordered (under Section 7 of the Act) to be considered To-morrow.
Dumbarton Burgh (Water) Order Confirmation Bill,
"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Dumbarton Burgh (Water)," presented by Mr. MUNRO; and ordered (under Section 7 of the Act) to be considered To-morrow.
New Writ
For Borough of Westminster (Abbey Division), in the room of the Right Hon. WILLIAM LEHMAN ASHMEAD-BARTLETT BURDETT-COUTTS, deceased.℄[ Colonel Leslie Wilson. ]
Vatican, British Envoy
I beg to present a petition signed by 500 persons in Oxfordshire and neighbouring counties, praying for the recall of the British Envoy to the Vatican.
Oral Answers to Questions
Naval and Military Pensions and Grants
Pensioners' Deaths
asked the Minister of Pensions the number of persons who, having been granted pensions owing to injuries or disease caused by the late War, have died since the pension was granted them?
The approximate numbers are, I regret to say, officers, 1,150, and other ranks, 45,000.
Dependants'pensions
asked the Minister of Pensions whether his attention has been called to a case in Glasgow in which the father of a soldier killed in the War has been refused a pension although, in accordance with the terms of the Royal Warrant, he is incapable of self-support and is in necessitous circumstances; whether he can state, according to the latest information in his possession, what is the total means of support of the father; how long the son and daughter, whose contributions to his maintenance relieved the Ministry of the necessity of paying a pension, have been unemployed; and how long this unemployment must continue before the Ministry will pay pension in accordance with the provisions of the Royal Warrant?
In the case which I understand my hon. Friend has in mind the income of the household of four persons amounts to 55s. a week, which is understood to be only a temporary reduction on the normal earnings of the family, due solely to periods of unemployment during the past three months. I have considered this case fully, and I am not prepared to make any exception to the general rule that temporary changes of circumstances cannot practicably be taken into account in dealing with applications for pension under Article 21 (1) (b) of the Royal Warrant. I may point out for my hon. Friend's information that the father in this case was not dependent on the deceased son, who was married in 1914, and in respect of whom pension is being paid to his widow and child. Further, there are two married sons and a single son surviving none of whom have in fact been contributing to the support of their parents.
Is my right hon. Friend aware that the father of this soldier has been destitute for many months? If I supply further evidence in the case, will he look into it?
I shall be most happy to do so.
Statistics
3 and 4.
asked the Minister of Pensions (1) how many of the soldiers who enlisted in the Army between 4th August, 1914, and 24th May. 1916, are drawing pensions;
(2) how many of the soldiers who were enrolled under The Military Service Act, 1916, are drawing pensions?
No distinction is drawn for pension purposes between the two classes of soldiers indicated, and the records of the Ministry are, therefore, not kept in such form as to render the information available.
Artificial Limbs
asked the Minister of Pensions whether the Williamson Committee of Inquiry on Artificial Limbs has yet reported; whether the Report will be published; whether it is in favour of the light metal limb; and what other, if any, decisions have been arrived at?
asked the Minister of Pensions whether the Committee on Artificial Limbs has now completed its inquiry; who were the members of the Committee; whether the Report can be published; and, if not, whether he can give the substance of the Report?
While I am unable to say at the moment what conclusions have been arrived at by the Committee, I understand that their Report will shortly be submitted to me. I hope to have it published as soon thereafter as possible.
The members of the Committee were:
My right hon. Friend the Member for Moray and Nairn (the Right Hon. Sir Archibald Williamson, Bart., M.P. (Chairman)).
Professor A. F. C. Pollard, Technical Expert.
Major Maurice Sinclair, C.M.G., R.A.M.S., Orthopaedic and Limb Fitting Surgeon at Royal Victoria Hospital, Netley.
Major M. P. Leahy, Disabled (Limbless) Officer, late R.A.M.C., Member of the Disabled Society.
Major A. A. Atkinson, Disabled (Limbless) Officer, Limb Fitting Surgeon at Roehampton.
Frank Cecil Meech, Esq., Disabled (Limbless), ex-Corporal of Horse, Royal Horse Guards.
Sir Lisle Webb, K.B.E., C.B., C.M.G., Director-General of Medical Services to the Ministry of Pensions.
Welsh Fusiliers (Sergeant W. Smith)
asked the Minister of Pensions why a disability pension has not been granted to Sergeant William Smith, No. 33842, Royal Welsh Fusiliers, discharged at Shrewsbury, in category B3, on the 9th April, 1919, after completing over 20 years' service, including service in the Boer War, Mohmund expedition, the Tirah campaign, and foreign service during the Great War; and, in view of the fact that this soldier had his right leg fractured twice while in the execution of his duty, and is consequently unable to regularly follow his employment, will he grant his claim to a pension?
Sergeant Smith first applied to my Department in November, 1919, for pension in respect of his fractured leg. This disability was of pre-war origin, and as it could not be found to have been aggravated by service in the Great War, no award of pension could be made under the present warrants. There is the usual right of appeal against this decision to the Pensions Appeal Tribunal. Further inquiry is being made into the case with reference to the former service mentioned by my hon. Friend.
Pensions Committees
asked the Minister of Pensions if he will, while pensions Committees are being organised, issue instructions that no conscientious objector will receive an appointment until the claims of local ex-service men have been satisfied?
It has always been the policy of the Ministry to give preference to ex-service men, and, as I assured the House in connection with the War Pensions Bill recently before the House, that policy will be continued in making appointments to the staffs of the new pensions committees.
asked the Minister of Pensions what steps he has taken to carry out the recommendation of the Departmental Committee of Inquiry set up by the Ministry to nominate representatives of ex-service men as members of local war pensions committees?
I would refer my hon. and gallant Friend to the answer which I gave to the hon. Member for Burslem on the 5th August, of which I am sending him a copy.
Is the right hon. Gentleman aware that there is a feeling of intense disappointment among ex-service men in consequence of the Government not accepting the recommendations of the Departmental Committee? Is it too late now to mend matters?
I do not think there is any disappointment at all. The ex-service men are having a larger proportion of representation on the committees than ever before.
I am receiving letters every day.
So are we all.
Royal Army Service Corps (Pte. J. a. Briggs)
asked the Minister of Pensions when a decision will become to in the case of James Arthur Briggs, 4, Seaview Terrace, Southwick, Sussex, late No. 115127, private, Royal Army Service Corps, which has been under the consideration of the Ministry since October of last year?
Detailed and careful inquiries have been necessary in this case to determine the man's claim in respect of the disability, which is one of minor character. It has now been decided that the disability is neither due to nor aggravated by service. There is a right of appeal against this decision to the Pensions Appeal Tribunal.
Lancashire Fusiliers (H. Hilton)
asked the Minister of Pensions whether, in the case of H. Hilton, No. 3/M.H./4910, Lancashire Fusiliers, tribunal case No. 10/1110, he is prepared to recommend that this case be reopened by the Appeal Tribunal, particularly in view of the fact that the medical opinion was conflicting and that this man joined the Army in September, 1914, prior to which since 1905 he had not had a day's illness, and that he served in Egypt, the Dardanelles, and other theatres of war until his discharge in April, 1919, being now totally unfit for work and in very straitened circumstances, due to phlebitis and defective vision, which he claims is due to war service?
Decisions of the Pensions Appeal Tribunal are, by Statute, final, and I have no power to intervene.
Ireland
Auxiliary Division
asked the Chief Secretary for Ireland whether, in May, 1921, in divisional Orders for the Auxiliary Division, it was announced that members would be permitted to reengage for another year; whether, in accordance with Orders, forms were filled in, and a list of cadets accepted was published in the routine Orders; whether he is aware that the chief of police has now directed that he cannot confirm these re-engagements for members with less than nine months' service; whether, seeing that this is a definite break of an engagement and the men affected have refrained from endeavouring to find employment on the strength of the official notice, he will say how it is proposed to compensate them; and how many members are affected?
The suggestion that there has been any breach of faith is entirely unfounded. A divisional Order of the 16th May, 1921, stated that the service of temporary cadets who were nearing the termination of their first year in the Auxiliary Division might be extended for a further period of six months and a supplementary Order dated the 23rd of the same month modified this to the extent of allowing the extension to be for 12 months instead of six months. On the 10th July all recruiting for the Auxiliary Division was suspended, but a number of members then serving presented themselves for re-engagement. These men, many of whom had only a few months' service in the division, were through a mistake of a subordinate officer re-engaged. On these facts being brought to his notice, the Chief of Police issued an Order stating that he was unable to confirm the re-engagement of any men who had not at the time of offering themselves for re-engagement completed nine months' service with the Division. The numbers given whose engagements have been cancelled in compliance with this Order is 565, of whom 163 have had less than six, and 91 less than three months' service. Inasmuch as none of the men whose re-engagements have not been confirmed was approaching the end of his existing period of service, it cannot be suggested that his plans in regard to the finding of future employment have been interfered with, and certainly no question of compensation arises from the rectification of this error in misreading the terms of the Orders in which the conditions governing re-engagements were clearly laid down.
As the hon. and learned Gentleman has stated that these re-engagements were confirmed in mistake, by a subordinate officer, is it not a fact that nevertheless they were confirmed and these men accepted, and that being the case is it not a distinct breach of faith on the part of the Government to go behind the back of their subordinate officer and say that these men are of no use to them now?
No. The mistake is clearly explained in the answer I have given.
The answer of the hon. and learned Gentleman admits that these re-engagements were accepted by a subordinate officer. Surely the Government must back up their subordinate officer and carry out their engagements.
Truce
asked the Chief Secretary whether any cases are known to have occurred of bodies of rebels drilling in Ireland during the truce, and of individuals photographing members of the Auxiliary Division and officers of the Crown forces in Ireland?
When cases of drilling are reported, steps are at once taken with a view to the discontinuance of such drilling. I have no knowledge of the taking of photographs of Crown forces referred to by the Noble Lord, and I am having inquiry made into the matter.
asked the Chief Secretary if the terms of the truce prevent the police arresting men who are known to have been implicated in the murder of unarmed men and women, as in the case of Sir Arthur Vicars, where 32 armed men attacked and murdered, on 14th April, one unarmed man; and whether the police are free from interference by Mr. de Valera and his associates in arresting men who commit, or attempt to commit, murders during the truce, as in the case of ex-soldier Geoghegan, murdered during the truce, and Constable Kane, who was attacked in Belfast lately, or whether the victims, if they survive, will have to be content with an apology, as in the case of Constable Kane?
In offences of a political character committed before the truce arrests have been suspended for the present. Any case arising during the truce is inquired into and action taken.
Is the same treatment being meted out to members of the forces of the Crown who are accused of crimes. Are they also not being proceeded against?
Are we to understand that anybody who commits a crime, such as the murder of Geoghegan, or the attack on Constable Kane, is to go free under the terms of the truce on the ground that these crimes are of a political character, or will such persons be arrested in the ordinary course of the law?
I have just stated the direct opposite. Any case arising during the truce is inquired into and action taken. As a matter of fact, the men who attacked Constable Kane have been arrested, and are in confinement.
The question of the hon. and gallant Gentleman should be put upon the Paper.
Agricultukal Land (Rates)
asked the Chief Secretary whether, as President of the Irish Local Government Board, his attention has been drawn to the rate of as much as 12s. in the £ on land now being sought to be collected in the South of Ireland; whether he is aware that this rate does not include any levy for malicious injuries; will he say what has happened to the Irish share of the Agricultural Grant; and will he inquire the reasons that have led to the rate on agricultural land being more than doubled in one year?
It is a fact that in several cases the rates on agricultural land is as high as 12s. in the £, and that no provision has been made for malicious injuries decrees. The Irish share of the agricultural grant has been paid as usual into the Local Taxation (Ireland) Account. Payment to recalcitrant local authorities has been withheld under the Restoration of Order in Ireland Act. It is being applied to meeting criminal injury compensation awards where the local authorities concerned have refused to pay. The increase in the rates referred to is due mainly to the efforts of the recalcitrant councils to carry on their administration in the absence of the benefit 'of the State grants-in-aid.
Is it a fact that the Chief Secretary has no power at all to deal with these recalcitrant councils and no power to do anything in this respect?
I do not understand the hon. and gallant Member's question.
Can the Chief Secretary take no action against these councils for not carrying out their duties?
He has already taken very considerable action by refusing to pay them their grants-in-aid.
Damaged Roads (County Cork)
asked the Chief Secretary whether he is aware that in parts of County Cork the public highways, for whose maintenance a demand is now being made on the ratepayers, are still made impassable by felled trees and other devices; whether such a state of things is the result of an understanding between those responsible for the government of the country and those who command the belligerents of the Irish republic and what action does he propose to take in the matter?
I have asked for a report upon the matter referred to by the hon. and gallant Member, and I would ask him to repeat his question early next week.
Fiscal Autonomy
asked the Chancellor of the Exchequer whether granting full fiscal autonomy to Ireland would result in an increase or diminution of national revenue; and if the approximate amount can be given?
This is a hypothetical question, the answer to which must depend on the nature of any such arrangement which might be made, and which could therefore only be answered after the terms and conditions of the arrangement had been defined.
Mr. J. J. Walsh
asked the Home Secretary what is the condition of health of the hon. Member for Cork City (Mr. J. J. Walsh); why is, or was, he under medical observation; and whether the hon. Member has now been released?
The hon. Member for Cork City was in a poor condition of health by reason, in the opinion of the doctor, of his persistent refusal to take exercise. He was under special observation on this account. He was released last Monday.
Settlement Negotiations (Mr. De Valera's Reply)
( by Private Notice ) asked the Leader of the House whether any reply has yet been received from Mr. de Valera to the proposals handed to him by the Prime Minister?
Yes, Sir. Mr. de Valera's reply was handed to me, in the absence of the Prime Minister, at noon, by Mr. Barton, who was accompanied by Mr. Art O'Brien and Mr. McGrath, M.P. I have at once forwarded it to the Prime Minister in Paris.
May I ask my right hon. Friend when he expects the Prime Minister's return from Paris, and is it at all likely that he will be in a position to make a statement to the House on the Irish Question before the House rises?
I hope that the Prime Minister will be able to return on Sunday. It is very difficult to deal with so many large and important questions at once, and the character of the Conferences in Paris and the nature of the business which is being pursued there require a certain amount of time for a successful issue. I hope that the Prime Minister will be back on Sunday, and I anticipate that he will make a statement with regard to Ireland either on Tuesday or Wednesday, but I speak subject to correction by the course of events.
Is it not the case that on account of the absence of the Prime Minister my right hon. Friend leads the House, and, when we have our own leader appointed by the Prime Minister to carry on the business of the House, why cannot we know what is in the reply from Mr. de Valera? Why have we to wait until it is sent to Paris to the Prime Minister?
I doubt whether any other hon. Member in the House would have put that question. It seems to me so obvious that a reply to proposals handed by the Prime Minister to Mr. de Valera, addressed by Mr. de Valera to the Prime Minister, should be seen first by the Prime Minister and considered by him in Cabinet before any statement should be made.
Royal Air Force
Committee of Inquiry
asked the Secretary of State for Air whether a Committee has been sitting to inquire into charges against Major H. N. Wylie and Captain A. P. Thurston by Mr. Mooney, of the Steel Wing Company, who alleged that these officers, who by reason of their office received technical information from the company, had made improper use of that information in connection with patents subsequently taken out or applied for by them, and that they used their position to hinder the development of the company's work for other than reasons of public policy; whether the Committee's Report has been received; and will he state what the result is?
The answer to the first and second part of the question is in the affirmative. The general effect of the Report of the Committee is that the charges were unfounded.
Airmen (War Disabilities)
asked the Secretary of State for Air if he will state how many airmen are still in hospital suffering from disabilities due to the War?
The numbers of officers and men of the Royal Air Force in hospital at the date of the last return available were 78 and 636 respectively, but it would require considerable labour to distinguish among all these cases those attributable to a period before the llth November, 1918. These would certainly amount to only a small proportion of the numbers quoted. For a return of the ex-officers and men in hospital I would refer the hon. Member to my right hon. Friend the Minister of Pensions.
National Expenditure
Business Committee
asked the Prime Minister whether he can state the terms of reference of the Committee to be presided over by the Minister of Transport; whether this Committee will take evidence; and whether the evidence taken by the Committee, as well as the Report, will be available for the Estimates Committee of this House?
I cannot at present add anything to the answer which I gave to the hon. Member on Monday last.
Can the right hon. Gentleman say when he will be in a position to answer this? If I put down a question for Tuesday will he then give a reply?
What I hope is that a statement on the subject may be made by the Prime Minister on either the Second or Third Reading of the Consolidated Fund Bill.
Yes, but does not my right hon. Friend see the advantage of letting us know the facts before speeches are made on the Consolidated Fund Bill? Could not we have an answer to this question before the Debate? Mr. CHAMBERLAIN: If the hon. Gentleman will put a question down on Tuesday, I will see whether that can be done.
Is it true, as stated by a news agency to-day, that further proceedings in connection with this Committee have been suspended for the time being?
The Committee has not yet been appointed, so it could hardly be suspended.
Treasury Circular
asked the Prime Minister whether his attention has been called to published statements giving particulars as to the Departments of State which have replied to the Treasury Circular and other information on this subject; whether this information was supplied from official sources; and, if so, why this information has not been given to the House?
I am not aware to what statements the hon. and gallant Member refers. If he will afford more detailed information inquiry will be made.
Is not the hon. Gentleman aware that last week a newspaper gave the names of the Departments which had replied and those which had not replied, stating that this information was from high sources of authority, and why should such information be given to newspapers and not to the House, of Commons?
I am afraid I cannot exclude these statements from the Press. I was unaware of the circumstance mentioned by the hon. and gallant Member, but, in any case, no such information was given officially.
Will the hon. Gentleman state whether any information has been given out to the Press from official sources with reference to the replies to this circular?
I do not think I can add anything to what I have said. No official information has been given on the subject at all.
asked, the Chancellor of the Exchequer which are the Government Departments that have not replied to the Treasury letter respecting economies in their expenditure?
Replies have been received to the Treasury Circular from all Departments. In certain cases communications are still proceeding with the Treasury on certain preliminaries essential to the completion of the detailed provisional Estimates.
Questions
Exhibition, 1851 (Royal Commission)
asked the Prime Minister whether the committee engaged in winding up the affairs of the Exhibition of 1851, and which, until some months ago, occupied a suite of offices at 54, Victoria Street, is still in existence; and, if so, is the work on which they are engaged of a public or a private nature and by whom are their salaries paid?
The Royal Commission for the Exhibition of 1851, to which I presume the hon. and gallant Member refers, was incorporated as a permanent body by a Supplementary Charter granted in December, 1851, to administer the fund derived from the surplus of the Great Exhibition. In pursuance of the Charter the income of the fund is devoted to promoting advanced education in science and art by means of scholarships and bursaries which are open to students all over the British Empire. The income covers the cost of administration.
Industrial Efficiency
asked the Prime Minister whether he will appoint a Royal Commission to inquire into the inefficiency of British industry in view of the charges made by the Labour Commission on the cost of living?
Any such investigation as is suggested would be a very lengthy and expensive proceeding, and, in view of the wide range of industries in the United Kingdom and the diversity of the conditions under which they are carried on, I should doubt whether a Commission could produce results of any value.
Imperial Conference
asked the Prime Minister whether, having regard to the resolution passed by the Imperial Conference in favour of an annual meeting of the Prime Ministers of the United Kingdom and the Dominions and the representatives of India, any arrangements have been, or will be, made before the departure of those oversea members of the Conference now in England for a meeting of the Conference next year; and, if so, at what time?
No, Sir. It has not been found practicable to do this.
Naval Officers (Marriage Allowance)
asked the Prime Minister whether he is now in a position to make any further statement as to the decision of the Government on the question of marriage allowance to naval officers?
asked the Parliamentary Secretary to the Admiralty whether, in view of the fact that a table recently published of comparative pay of married officers of the Army and Navy shows that many naval officers receive considerably less than married Army officers of corresponding rank, he will state what are the objections, other than increased cost, against the officers of both Services being given equal treatment?
It is true that a comparison of the pay and allowances of officers of certain equivalent ranks in the Navy and Army shows an advantage in favour of the latter. This, however, is not a new situation, as the same was true before the new rates of pay for the Services were fixed. It has been the accepted view in the past that regard must be had to the earlier age at which naval officers normally attain the various ranks, the effect of which is to give a marked advantage to the naval officer over the whole of an average professional career, even when the married allowance in the case of the Army officer is taken into account. The fixing of the new rates of pay on different bases℄the Navy giving the same rate of pay to the unmarried as to the married officer and the Army making a considerable difference between the two℄has, however, introduced disturbing factors, which are receiving careful consideration, but on which it is not yet possible for me to give a definite decision.
In view of the very unsatisfactory answer given to my question, I give notice that I propose to raise the matter on the Consolidated Fund Bill.
Has the hon. Gentleman, in giving that answer, taken into consideration additional advantages enjoyed by an army officer over a naval officer, and whether he has also borne in mind the effect of the recommendation of Admiral Halsey in reference to the service rate of Income Tax?
The Board of Admiralty have taken all those things into account.
Will the hon. Gentleman explain why it is that army and air officers get £180 marriage allowance, whereas naval officers are kept waiting to know whether they are to get anything at all?
Does the hon. Gentleman realise that the men are waiting for an answer, and that he keeps putting them off, and will he tell them one way or the other whether they are going to get the same in the Navy as in the Army? Just give us a straight answer℄"Yes" or "No"
Taking into account all the items in the situation, the naval officer is getting substantially more than the Army officer. [An HON. MEMBER: "That is not true!"] At the same time, there is a case for the married officer which has to be carefully considered, but not as between the Army and the Navy.
But when?
Peace Treaties
Reparation (Seamen's Claims)
asked the Prime Minister if he will fulfil his pledge, made to fishermen and the mercantile marine service, that compensation must be paid to the men of these services who were interned in Germany during the War: and, if compensation to these men is not recoverable from Germany, will he see that the National Exchequer supplies the necessary funds to meet these pressing claims?
As regards the first part of the question, a Special Commission on ex gratia grants (which was referred to in the statement made by my right hon. Friend the Lord Privy Seal on 4th May, 1920) is being appointed forthwith for the purpose of considering these claims and others of a like nature. The Commission will consist of the hon Member for Guildford, Mr. J. H. Sabin, the President of the Surveyors' Institution, and Lord Summer, who has consented to act as chairman of the Commission. With regard to the second part of the question, it is impossible to make any statement pending the result of the proceedings of the Commission referred to.
asked the Chancellor of the Exchequer whether the moneys received under the German Reparation (Recovery) Act, 1921, have been paid into an account opened in She books of the Paymaster-General, entitled, the German Reparation (Recovery) Act Account, in accordance with the Treasury Minute, dated 24th March, 1921; whether this sum amounted to £198,000 on 18th July, 1921; whether steps have been taken with a view to setting up the special commission in order that a beginning may be made with the examination of claims; and, if not, whether immediate action will be taken in justice to those of the mercantile marine whose health suffered as a result of enemy action?
The answer to the first two parts of the question is in the affirmative. As regards the third part, I would refer the hon. Member to the answer given by me to-day to a question by the hon. Member for Wallasey (Dr. McDonald). In view of these replies, the last part of the question does not arise.
Is the hon. Gentleman aware that many officers and men of the Mercantile Marine carried on their ordinary work after the Armistice, but failed, through lack of vigour brought about by the War, and their wives and children are suffering very considerable hardship?
I am very well aware of, and I have constantly in mind, the great hardship of some of these cases.
Can the hon. Gentleman say when the payments out of this fund will commence?
I cannot say with any approximation to accuracy. It will depend upon when the money is received.
Housing
Subsidies (Extension for Completion)
asked the Prime Minister whether the Government are prepared to extend the period during which local authorities in England and Wales can receive financial assistance under the Housing Act of 1919 until 30th June, 1924, seeing that they have already granted this extension to local authorities in Scotland?
As I stated recently in announcing the decision of the Government with regard to housing, where work undertaken by local authorities with the approval of the Ministry cannot, for reasons outside the control of the authorities, be completed by July, 1922, the time for completion will be extended by the Ministry as may be necessary.
Will the right hon. Gentleman answer the question that is put down, as to why English and Welsh local authorities should not be put on exactly the same terms as the Scottish local authorities, which have till 1924?
They are put on the same terms. The time has to be extended to such time as may be necessary. If it is necessary to extend it till 1924, it will be extended, but if the schemes can be completed before then there is nothing to extend.
Seeing that it is extended to Scotland without qualification, cannot the same extension be granted to England and Wales without qualification and without reservation?
I do not know what the circumstances of Scotland are, but the extension in England and Wales will he continued as long as necessary, which I do not think will be to so distant a date.
asked the Minister of Health whether Government subsidies to house builders are to remain available in Scotland until July, 1924; and, if so, whether, in view of the shortage of houses in industrial and rural districts, he will assist house building in Wales in a similar manner?
There is no extension of the subsidy to private builders to 1924. The only extension is to local authorities.
Putney
asked the Minister of Health whether it is proposed to pay £22,000 in order to abandon completion of the Putney housing scheme; who is to receive this sum of money as a solatium for abandoning the remainder of the scheme, and how many firms are to participate; whether the contract with the builders had a clause inserted enabling his Ministry to abandon any part of the scheme; if not, who was responsible for the preparation of the forms of contract; and whether this is a case which should be referred to an official referee to decide what, if any, compensation should be paid to the persons concerned in the cancellation of their contract, or if the money has already been paid?
The London County Council are arranging, with my concurrence, to modify, in agreement with the two contractors concerned, the terms of the contracts referred to by the hon. Member, and a payment of approximately the sum mentioned will be made by the council in consideration of the reduction in the number of houses to be erected under the contract. The contracts, which were prepared by the council with the approval of the Ministry, did not provide for the abandonment of any part of the work contracted for, and I do not understand on what ground an official referee could or should be employed.
Questions
Nationality Law
asked the Prime Minister whether the question of the denationalisation of the children of British subjects under the British Nationality and Status of Aliens Acts, whereby such children whose fathers have been born abroad cannot be registered as British subjects, was dealt with at the Imperial Conference; if so, what decision was arrived at; and, if not, what action the Government proposes to take in view of the promise given by the Secretary of State for Foreign Affairs in August, 1918, to the British community in Japan through His Majesty's Ambassador there?
The Prime Minister has asked me to reply. The answer to the first part of the question is in the affirmative, and I would refer the hon. and gallant Member to the replies which I gave to the hon. Members for the Exchange Division of Manchester (Sir J. Randles) and South Kensington (Sir W. Davison) on 21st July and 3rd August respectively.
Post Office (Business Advisory Council)
asked the Prime Minister whether he is aware that the Postmaster-General has twice refused to appoint a representative of the co-operative movement on the Post Office Business Advisory Council; whether, in appointing that Council, 18 of the 19 persons selected were connected with, if not representing, great banking, shipping, manufacturing, engineering, railway, financial, and distributive interests; that out of its large experience the cooperative movement is able to furnish special information and advice on many matters to be dealt with by the Council; and whether, in these circumstances and in view of the acknowledged services rendered by the co-operative movement during the War, the Government is now prepared to consider nomination from that movement for appointment on the Council?
My right hon. Friend has asked me to reply to this question. The members of the Post Office Advisory Council were selected on account of their individual qualifications and not as representatives of particular interests or par- ticular localities. I regret that I cannot depart from this principle nor add to the personnel of the Council.
Am I to understand that these persons were selected by the Postmaster-General himself, or am I to assume that the nominations of these persons were sent to him at the instigation of a certain association in London?
There is hot a word of truth in that suggestion. They were selected by me on my own authority.
Timber Yard Fire, Stratford
asked the Prime Minister if his attention has been drawn to the disastrous fire which occurred at Carpenters Road, Stratford, London, on Monday last; whether he is aware that the riotous scenes which preceded the outbreak of fire were consequent upon the presence of several thousands of unemployed men who had assembled during, the night and in the early hours of the morning in answer to an advertisement of a few vacancies at the timber yard at which the fire took place, and that many of the unemployed men had come from distant parts of the country in the hope of finding work; and whether, in view of the desperate straits to which thousands of workers are being reduced, the Government proposes to take any steps with a view to preventing similar occurrences?
I am informed that the circumstances were substantially as stated by the hon. Member. The crowd, which is estimated at about 3,000, appears to have assembled as the result of an advertisement for timber porters inserted in the Press by the owners of the timber yard, and I understand that the disturbance was due to their disappointment that only a few of the applicants were engaged. The Government cannot control the insertion of such advertisements by private firms, but I think that employers would be well advised, in advertising for hands, to state clearly the number of vacancies that they wish to fill.
Cannot the right hon. Gentleman see from that incident that the small cost of an advertisement is more beneficial than the whole cost of the Employment Exchanges?
Estimates (Select Committee's Report
asked the Lord Privy Seal whether his attention has been called to the Report of the Select Committee on Estimates; and what action is contemplated in connection with the recommendations of the Report?
Yes, Sir. My attention has been called to the Report in question, and the recommendations will receive the consideration of His Majesty's Government. I desire, however, to take this opportunity of referring to a matter in connection with this Report. Its principal conclusion is prefaced by a number of paragraphs which appear to be presented as a summary of the evidence of a witness from the Treasury. I invite hon. Members to read the whole of the evidence of this witness (which will be presented in due course). If they do so, I am confident they will agree that the summary in question does not accurately represent the tenour of his evidence. Witnesses from the Civil Service give evidence under conditions of considerable difficulty and delicacy, and I am sure that it is the desire of the House that they should be protected from misunderstanding. I cannot but regret that in this case the evidence of the witness was not allowed to speak for itself, but that by an arbitrary process of omission and selection, it has been given, in the summary, a colour which it does not bear in the original.
Is it not a fact, inter alia, that there is a statement in the Committee's Report that the cost of the Finance Department of the War Office was £962,000, when really it should be £562,000, as is quite clear from the Estimates?
I do not carry the figure in my mind, but I will accept it from so careful an observer as my right hon. Friend.
In regard to another point, to which I hope my right hon. Friend's attention has been directed, as to a particular salary complained of, namely, the salary of one of the Joint Secretaries of the Army Council, is it a fact that it is stated in the Report that an increase of £1,500 had been given, when actually an increase of only £950 had been given, of which £500 was war bonus, which is going to disappear in a month or two?
That is also a fact and, I think, a very material fact.
Does the right hon. Gentleman realise that he has made a very serious charge, and will he, in view of that very serious charge, expedite the publication of the evidence in full and give the House an opportunity of discussing both the evidence and the Report?
It is not without very grave consideration, and not without deep regret, that I find myself differing from a Committee of this House. I will do everything in my power to expedite the publication of this evidence and to put it in the hands of Members at the earliest possible moment, but may I give the House one illustration of what I mean? The Report, in paragraph 11, says:
"He also stated that a civil servant was required to work a 7-hour day."
The answer of the witness is:
"A higher division man is eligible for eight weeks' holiday if he has 10 years' seniority. He is also required to work a 7-hour day. The real facts are that he neither gets his full holiday nor does he work a 7-hour day. He works, in fact, a greatly longer day."
I submit, respectfully, to the House, and even to Members of the Committee, that the answer as summarised in the Report is not a fair representation.
May I ask my right hon. Friend if he will be good enough to answer the last part of my question, whether, after the publication of the evidence, he will give the House an opportunity of discussing it?
That depends upon whether the House is sitting. All that I can say at this moment is, that I will do my utmost, and take immediate steps as soon as I leave the House, to expedite the printing of the evidence. I can assure my hon. Friend and the House that it is my desire that the House should have this evidence at the earliest possible moment, and my earnest prayer to the House that they will be good enough to read it.
May I ask my right hon. Friend whether, in the opportunities which may arise before the House adjourns or prorogues, he will bear in mind that next week, as far as business usually runs on occasions like that, there will be some spare time, and I do not think the House could be more usefully occupied than in discussing this matter and clearing up the points at issue?
I should entirely agree, if we have spare time and if the evidence be available, and I will do my best to make it available.
With reference to a question put by the right hon. Member for Camborne (Mr. Acland), I wish to ask the Leader of the House whether he is aware that, in answer to a question which I put on the Paper a month ago to the Financial Secretary to the War Office, he gave me a reply stating what was the cost of the Financial Department of the War Office, and the figures given in that reply were exactly the figures given in the report of the Committee?
I really cannot answer in respect of particular figures, without having notice given to me of the question, but I believe the question of the financial control over the Army is causing my right hon. Friend the Secretary of State for War considerable anxiety. But the scheme which involves that expenditure was adopted on experienced advice and, I think, with the approval of the Public Accounts Committee.
Is it not the fact that the cost as at present shown is the cost of establishing a very valuable new system of accounts, and not the cost of carrying it on?
The hon. Gentleman, who is Chairman of the Public Accounts Committee, does not put a question of that kind without having good ground for it, but I cannot answer questions of this sort on my personal responsibility without the opportunity of reference.
Russia
State of Georgia
asked the Under-Secretary of State for Foreign Affairs whether he has any information to support the statements which have recently reached Constantinople that the Russian Soviet Government have again started a reign of terror in their subject State of Georgia; that the Moscow authorities have arrested the president of the revolutionary socialist committee of Georgia and replaced him by a, young Turk named Dudu Nidivani, one of their own nominees from Angora,; that the Bolshevik Comissar Stalin, in Tiflis, has arrested nearly all the leading public men in Georgia, including M. Lantatidze, the vice-president of the Georgian Constituent Assembly; and that this action by Moscow threatens the extinction of the freedom and liberties of the Georgian people?
His Majesty's Government have at present no information regarding the internal situation, in Georgia, other than the reports referred to by the hon. Member which have appeared in the Press, but inquiries are being made.
Is my hon. Friend aware that there never has been, or can be, either Young or Old Turks of the name of Dudu Nidivani?
May I ask what is the concern of the Foreign Office in the affairs of Georgia, and how they are relevant to the business of this House?
British Subjects
asked the Undersecretary of State for Foreign Affairs whether His Majesty's Government is aware of any other case, besides the case of Mrs. Stan Harding,' in which a British subject has been invited into Russia on a Soviet Government safe conduct, and then subjected to barbarous maltreatment in the attempt to induce such British subject to become a Soviet agent?
I am not aware of any other case answering to the description given by the hon. and learned Member.
Will His Majesty's, Government impress upon the Soviet authorities that they cannot usefully employ such methods as coercion of British subjects?
Is it not the case that the British Government admits these facts, and this is one of the very worst cases on record?
I have already announced that His Majesty's Government will press for reparation.
Is the hon. Gentleman not prepared to take any action except to allow this lady to prefer her claim to the Russian Claims Office, which may or may not be a useful operation?
I do not know if my Noble Friend would suggest any other method, but, if so, I should be glad to consider it.
Has the hon. Gentleman considered the advisability of treating this exceptional case in an exceptional manner, and making a special request for compensation from, the Soviet Government?
I will consider that.
Questions
Passports, Paris
asked the Undersecretary of State for Foreign Affairs the average number of passports issued per day at the British passport office in Paris; what is the number of the staff employed; and what is the annual cost thereof to the country?
There is no separate British passport office at Paris. The issue of passports forms part of the normal work of His Majesty's Consulate-General. Details of the numbers of passports issued at Paris are not immediately available at the Foreign Office. It is hardly practicable to calculate separately the charges falling upon the Consul-General's office allowance in connection with this part of its work.
Does the hon. Gentleman think that is a satisfactory reply?
Yes.
Now that the passports have been abolished, presumably the staff will be reduced?
I have already made an announcement
League of Nations (Germany, Admission)
asked the President of the Board of Education whether at the next meeting of the Assembly of the League of Nations he will vote in favour of the admission of Germany as a member of the Assembly?
I trust that the hon. and gallant Member will not think me unreasonable if I say that, having regard to the great issues at stake, the British Delegation do not propose to take a decision before proceeding to Geneva, but will be guided by the balance of argument in the course of the discussion, in the event of the question being raised.
Ex-Service Teachers
asked the President of the Board of Education whether he. will explain why the pledge given to ex-service teachers that they should not suffer in their careers by reason of serving in the War has not yet been fulfilled in respect of the dates of their training certificates; and when will such pledge be fulfilled?
asked the President of the Board of Education whether he is aware of the anxiety felt by ex-service teachers at the long delay in arriving at a decision as to whether their training certificates are to date from the day they would have qualified had there been no War or from the date of actual qualification; whether he will expedite his decision; and whether, in doing so, he will remember the pledges held out to these teachers when they joined the Army?
asked the President of the Board of Education what is the reason of the continued delay in deciding upon the claim of ex-service teachers to date their training college certificates from the dates at which they would normally have become qualified but for their service in the War?
I have already stated that I cannot antedate certificates for purposes of the Teachers' Superannua- tion Act, 1918. The question as to the treatment of War service before the date of certification for purposes of salary increments is under consideration, and I hope shortly to be in a position to make a statement on the subject.
Entertainments Duty
asked the Chancellor of the Exchequer if he is aware that a large amount of unemployment is now being caused in the entertainment profession by the imposition of the entertainments duty, as well as a serious reduction in the wages and salaries of entertainment employés, and that these taxes are also causing the public to transfer their patronage from the higher to the lower priced seats, thereby still further diminishing the receipts, increasing unemployment, and decreasing wages and salaries; and whether, in view of this growing unemployment and these reductions in wages of entertainment workers, he can hold out any hope that this duty will be abolished or considerably modified in the near future?
This matter has only recently been the subject of full discussion during the debates on the Finance Bill, and I can add nothing to what was then said.
Universities and University Colleges (Treasury Grants
asked the Chancellor of the Exchequer what amounts have annually been granted by the Treasury to universities and university colleges since the Advisory Committee was set up; whether such grants are for capital or maintenance; what was the reference to the Committee; who are its Members; do they receive any remuneration; and, if so, what amount?
As the answer to this question is of considerable length, I will, with my hon. Friend's permission, cause it to be circulated in the OFFICIAL REPORT.
The following is the answer:
The amounts granted by the Treasury to universities and university colleges since the University Grants Committee was set up are as follows:
1919–20: £ Recurrent grants 789,500 Non-recurrent grants 295,500 1920–21: Recurrent grants 976,127 Non-recurrent grants 277,000 1921–22 to July, 1921: Recurrent grants 489,063 Non-recurrent grants 242,000 £3,069,190
Of these grants the recurrent grants have been for maintenance only and not for capital, the non-recurrent have been principally for capital but, to some extent, for maintenance.
The reference to the Committee was as follows:
"To inquire into the financial needs of university education in the United Kingdom, and to advise the Government as to the application of any grants that may be made by Parliament towards meeting them."
The members of the Committee are as follows:
Sir William McCormick, LL.D., Chairman.
William Bateson, Esq., F.R.S. Sir Dugald Clerk, K.B.E., F.R.S. Sir James Johnston Dobbie, F.R.S. Miss S. M. Fry. Sir Frederick George Kenyon, K.C.B., D. Litt.
Sir Stanley Mordaunt Leathes, K.C.B. Sir Wilmot Parker Herringham, K.C.M.G., C.B., M.D.
Sir Joseph John Thomson, O.M., F.R.S.
None of the members receive any remuneration except the Chairman, who receives in this capacity a salary of £1,300 per annum, with an allowance for expenses (including subsistence) of £500.
Holloway Prison (Lady Superintendents)
asked the Home Secretary whether the lady superintendents recently appointed in Holloway prison possess medical or nursing qualifications; if not, what other qualifications they possess; and what are their duties and powers?
One of these ladies is a highly-qualified nurse, who has had much experience in charge of outside hospitals. She has the supervision of all the hospital work of the prison and of the hospital staff, subject to the control of the medical officers and the Governor, who is a medical man. The other has had great experience as a prison officer, and has the supervision of the disciplinary side of the prison with its staff, subject to the control of the Governor.
Prison Commissioners
asked the Home Secretary how many prison commissioners there now are, including chairman and secretary; and what are the salaries at present paid to each of them?
There is a chairman at a salary of £l,500-£ 1,800, three commissioners, of whom one is a medical commissioner, at salaries of £1,000, and a secretary at a salary of £700-£800.
Mining Areas (Subsidence)
asked the Home Secretary whether any progress has been made with the preparation of the Bill, promised by the Government, to secure compensation for subsidence in mining areas; and whether it will be introduced this Session?
I have been asked to reply. I would refer the hon. Member to the answer given to a similar question on the 14th June, to which at present nothing can be added. No Bill can be introduced this Session.
Is any progress being made with this matter at all? Are we to be put off for two or three years?
No. The matter is still under consideration.
Criminal Investigation Department
asked the Home Secretary whether additional chief officers have recently been appointed to the Detective Department of the Metropolitan Police force; if so, will he state how many extra officers have been added and the reason for such increase; whether it means a general reorganisation of this detective force; and will he state the total number of officers and men who are now employed in this part of the Metropolitan Police force?
No additional chief officers have recently been appointed to the Detective Branch of the Metropolitan Police force. The strength of this branch is now 758 of all ranks.
Dangerous Drugs Act (Regulations)
asked the Home Secretary whether the Regulations under the Dangerous Drugs Act, 1920, have been officially confirmed and are now in operation; and what other Powers have passed legislation in accord with the Opium Convention of 1912, so as to secure cooperation in regard to the import and export of the dangerous drugs named in the Act?
The Regulations have been made and will come into force on the 1st September. I cannot say definitely what other Powers have passed legislation to carry out the Convention of 1912, but the Powers which were signatory to the Treaties of Peace undertook to enact the necessary legislation without delay and at latest within 12 months from the Treaties coming into force. I understand that full information as to the position in each country is being collected by the League of Nations, which is entrusted with the general supervision over the execution of the Opium Convention.
Royal Palaces (New Works)
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, why the cost of new works at palaces generally (not in His Majesty's occupation) has increased from £985 in 1914 to £4,300 this year?
Pro- vision is included in this year's Estimates of a sum of £1,500 for works of modernisation to Grace and Favour residences on change of occupation for which there was no provision in 1914. The increase is also partly due to the higher cost of wages and material since 1914 and to the fact that work under this sub-head was drastically curtailed during the War and since the Armistice. I can assure the hon. Member that no work will be carried out that is not absolutely essential.
Palestine
asked the Secretary of State for the Colonies whether he has any information to the effect that Christians from Bethlehem are emigrating to South America owing to their dissatisfaction with the Zionist Government of Palestine?
May I ask you, Mr. Speaker, on a point of Order, before this question be answered, whether it is correct to describe the British Mandate for Palestine as "the Zionist Government of Palestine"? Should not hon. Members exercise a certain amount of discretion as to the accuracy of the facts contained in questions?
I think the hon. and gallant Gentleman is right. Hon. Members should be careful not to put into their questions allegations of their own or opinions. Questions should be confined exclusively to a real inquiry to elicit facts.
The answer is in the negative. I would add that the present Government of Palestine should be correctly described as the British Government, and not the Zionist Government.
Is it not the fact that in the speech of the right hon. Gentleman himself the ardent Zionism of the High Commissioner was expressly accounted unto him for righteousness?
The High Commissioner himself is under strictures from the ardent section of Zionists.
Natal Provincial Council (Asiatics)
asked the Secretary of State for the Colonies whether an Ordinance which has the effect of preventing Asiatics in future from acquiring the municipal vote has passed the Natal Provincial Council; if so, whether such Ordinance has received the assent of the Governor-General; and, if not, whether any representation on this subject has been received from the Government of India?
An Ordinance of the nature indicated, dealing with the township franchise, was recently passed by the Natal Provincial Council, but I am not yet in a position to state the decision of the Union Government with regard to it. I do not know whether any representations have been made by the Government of India.
Would it not be an entirely unprecedented action in the case of a self-governing Dominion for the Governor-General to refuse his assent to any Ordinance passed? Would it not raise a question of the gravest constitutional importance to the whole of the self-governing Dominions?
Is not a question of the gravest magnitude involved here which cannot be avoided whatever the Government may say or do?
Would my right hon. Friend answer my question as to the constitutional importance of the point raised? Would it not be quite unprecedented for the Governor-General to take the action suggested?
If the matter be of such consititutional importance, it seems desirable that a question should be put upon the Paper.
May I, Mr. Speaker, on a point of Order, say that is exactly the question which my hon. Friend has put down? He has suggested it is within the competence of the Imperial Government to instruct their local Governor-General to refuse to give his assent, and as a constitutional point has been raised, I very respectfully suggest that it is in the interests of the whole Empire that it should be answered.
I rather adhere to the answer which you have so very kindly suggested to me, Mr. Speaker.
These questions are of a very delicate nature, and they require considered answers.
Malta (Education)
asked the Secretary of State for the Colonies whether Mr. Bruce, the expert on education brought to Malta by Lord Plumer, reported that it was wrong t) compel young children to learn simultaneously both English and Italian when the Maltese language generally spoken is different from either; whether the system condemned by Mr. Bruce has been promised by the Government of Malta, but has been found impracticable; whether, under the new constitution, the electors will be increased from about 6,000 to over 25,000; and whether the rights of priority of choice of the language of instruction granted under the constitution will be free, at all stages of education, from any compulsion to learn Italian, without prejudice to its remaining an equally available language of culture for those who may wish to cultivate it?
Mr. Bruce in his report refrained from discussing the language question in Malta, though he did express the view that it was not advisable to attempt to teach children three languages at once. I am not able to say, without further inquiry, whether the figures given by my hon. and gallant Friend in the third part of the question are correct. With regard to the last part of the question, I would refer him to the answers given to the hon. Member for East Nottingham and the hon. Member for South Nottingham on 2nd August last.
Kenya Colony (Natives' Wages)
70 and 71.
asked the Secretary of State for the Colonies (1) whether his attention has been drawn to the statement in the East African papers that through organised efforts the white settlers have been able to reduce practi- cally everywhere the wages of the natives by 33⅓; if he can say whether this reduction will be imposed upon the employés of the railways and in the Government service?
(2) Whether the convention of associations in Kenya Colony has decided to bring' about a reduction in native wages to approximately 5s. per week; and whether he is prepared to issue instructions that native Government employés shall only be reduced in the same proportion as those of the white and Indian Government employés?
I understand that there has been a general reduction of native wages in private employment to pre-War levels. Owing to the depression in trade, there is a present scarcity of employment, and natives are ready to accept the reduced wage, which, for the same reason, is all that employers can afford to offer. As regards unskilled natives employed by the Government, their wages will be determined by the general rates of wages for similar labour in the locality in which the men are engaged. As regards semi-skilled and skilled labour of native Government employés, these have no relation to unskilled labour, but I cannot say that any exact proportion between the wages of these employes and the emoluments of European or Indian officials will be possible or desirable.
If there is now a scarcity of employment in East Africa, will the right hon. Gentleman consider the advisability of repealing the Ainsworth circular, and a similar circular, sent out in order to stimulate the demand for employment amongst the natives of the colony?
I am sure I should have notice of a question like that.
Board of Trade (Temporary Staff)
asked the President of the Board of Trade why the temporary staff employed in the principal Department in clerical assistance and copying costs £3,246 more this year than last, although the numbers of the staff have been decreased by 84?
The amount taken under this head in the Estimates for the year 1920–21 proved to be insufficient to the extent of about £6,000 owing to the following reasons: ℄
North Eastern Railway Company
asked the Financial Secretary to the Treasury who was the other official of the North Eastern Railway Company who was given a capital sum of money, in addition to the Minister of Transport, on leaving the railway company for other employment; what was the sum of money; whether this gentleman is now in Government employment, and, if so, in what capacity and at what remuneration; and whether the capital sum paid has been or will be refunded to the North Eastern Railway Company out of public funds?
The official in question is not now and never has been in Government employment, and I regret that I cannot therefore give his name. The compensation, I am informed, was entered in the accounts of the railway at the amount of £15,000 in 1913. It has not resulted and will not result in any charge upon public funds, but on the contrary the fact that the compensation was thus entered by the North Eastern Railway in 1913 and debited to working expenses, has had the effect of reducing by £105,000 the amount payable by the Government during the period of possession. The hon. and gallant Member is, of course, incorrect in stating that any payment was made to the Minister of Transport by the North Eastern Railway℄the payment was to the deputy-general manager of that railway before he became Minister of Transport.
Why is it the £50,000 in the one case is to be paid by the Government on the advice of the Law Officers of the Crown, and not the £15,000℄if I understand the hon. Gentleman correctly℄in this case? Is he aware that the Chancellor of the Exchequer quoted this case as a reason for the payment by the Government of the £50,000 to the present Minister of Transport?
Is it not the case that, if the debit to the working expenses of this £50,000 is disallowed, the debit of the £15,000 must necessarily be disallowed; therefore the taxpayer will be out of pocket by the difference between £50,000 and £105,000?
The hon. Gentleman is perfectly correct. If they had not been so entered there would have been a further charge on the nation. As to the question of the hon. and gallant Member for Central Hull, in the first place, it is simply the difference in dates; as to the second part of the supplementary question, I am afraid the answer to which he has referred is hardly within my memory, but I understand that this case has been referred to as a precedent.
Is the hon. Gentleman aware that the Chancellor of the Exchequer specifically quoted this case as a similar debit which had been so dealt with in the company's books in the standard year? How can he explain that?
The hon. and gallant Gentleman is perfectly correct; if I may say so, he has made a very pertinent statement. This case would have been referred to as a precedent for charging expenses of this sort as working expenses.
Is it a fact that the payment of the £50,000 was first passed, subject to legal opinion, by the Ministry of Transport itself? Has the House of Commons ever seen the agreement under which the payment was made?
Those questions really do not arise, and I think I must ask for notice. The question suggests inaccurate implications.
May I be permitted to say, in answer to the first part of the question of the hon. and gallant Gentleman opposite, that the Minister of Transport refused to have anything to do with this question as Minister of Transport, and, the moment the question was raised, asked me, as Chancellor of the Exchequer, to deal with it because it affected himself? I refused to pass it except on the advice of the Law Officers that it was a proper charge for the working expenses of the railway.
Will the right hon. Gentleman give the House of Commons an opportunity of seeing the agreement on which the Law Officers based their opinion?
I answered that question yesterday.
Cost of Living
asked the President of the Board of Trade whether his attention has been drawn to the final Report of the Labour Committee on the cost of living and, in particular, to the charge that results of inquiries under the Profiteering Acts have been suppressed by the Government, and to the statement that the Government has repeatedly promised to introduce legislation concerning trusts; and if he has any statement to make on the subject?
I am aware of the statements to which the hon. Member refers. In a number of cases the Central Committee under the Profiteering Acts causedinquiries to be undertaken, but made no reports thereon to the Board of Trade. In a few cases reports were not published because they were not of sufficient public importance or were incomplete. As regards legislation concerning trusts, I would refer the hon. Member to the answer given to the hon. Member for Wigan on the 30th June.
Is the hon. Baronet aware that the Report of the Labour Commission indicates that the actual cost of living to-day is 28 points higher than the figures indicated by the Board of Trade returns, and that this discrepancy has prevailed since September of last year; and having regard to the fact that the 25s. pre-War wage on the basis of the Board of Trade figures is now £2 14s. 9d., and on the basis of the Labour Commission Report it should be £3 per week; and having regard to the very serious importance of this matter to the whole of the workers of the country will he have inquiries made into the Labour Commission Report and compare it with the Board of Trade figures with a view to their refutation or otherwise?
I can hardly be expected to give a complete answer to that question, but I am going to answer a further question to-day with regard to the Report of the Labour Commission. As regards the Board of Trade index figures, while the Labour Commission regard those figures as being unduly low, I would like to point out that a large number of other people regard them as being unduly high.
Is not the fact that different people take different views℄the clearest possible proof of the necessity for further investigation?
Board of Trade (Food Department)
78 and 79.
asked the President of the Board of Trade (1) if he will state, under the name of each section of the Board of Trade Food Department, the comparative numbers and percentage of ex-service men now employed;
(2) if he will state the names of, the salaries paid to, and the duties performed by all officers of the establishment branch of the Board of Trade Food Department in receipt of salaries of £250 per annum and over; and how many of these positions are held by ex-service men?
As the replies take the form of tabular statements, I will, with my hon. and gallant Friend's permission, circulate them in the OFFICIAL REPORT.
The following are the tabular statements:
NUMBERS AND PERCENTAGE OF EX-SERVICE MEN NOW EMPLOYED IN THE FOOD DEPARTMENT. Section. Total No. of Staff. Ex-Service Men. Percentage of Ex-Service men. Per cent. Secretary and Advisers (paid) … 12 3 25 Technical Advisers (unpaid) … 4 — — Disposal and Liquidation … 633 339 54 Ancillary Services … 168 80 48 Divisional Staff … 76 27 35 Administrative Finance … 30 19 63 Establishment (including Shorthand typing and cleaning staff). 260 59 23 TOTAL … 1,183 527 44
NAMES, SALARIES, AND DUTIES OF OFFICERS IN THE ESTABLISHMENT BRANCH OF THE FOOD DEPARTMENT, BOARD OF TRADE, IN RECEIPT OF £250 PER ANNUM SALARY AND OVER, AND WHETHER EX-SERVICE OR NOT. Name. Salary. Duties. Service position. Miss M. Curtis £700 per annum inclusive. Establishment Department, representative at Headquarters. Non-Service. Mrs. E. B. Feiling £480 per annum inclusive. In charge of section dealing with appointments, promotions, transfers, terminations, etc. Non-Service Mr. T. F. L. Gopsill £480 per annum inclusive. Accommodation Officer for Headquarters and Provinces. Non-Service Mrs. M. M. Dalzell* £322 per annum inclusive. Responsible for removals and equipment. Non-Service Mr. C. H. Beard† £230 per annum plus war bonus. In charge of Records and leave questions. Non-Service Mr. J. B. Barlow £550 per annum inclusive. Officer responsible for Registries, Common Services, and Records. Non-Service Mrs. Maxwell £300 per annum inclusive. Chief Supervisor of Typing Staffs Non-Service Miss W. L. Mackidd £480 per annum inclusive. Establishment Representative at Cromwell Road. Non-Service Mr. H. L. Boreham £300 per annum inclusive. Assistant Establishment Officer at Cromwell Road. Ex-Service. Mr. W. H. Rose £265 per annum inclusive. In charge of Printing and Stationery Ex-Service Mr. F. Jones‡ 106/-per week inclusive. Grade I Clerk in Records Section Non-Service. Miss E. F. Steel £300 per annum inclusive. Records Officer engaged on sifting and classifying Ministry of Food papers Mr. W.J.D.Wilson * £425 per annum inclusive. Head of Cables Section Non-Service Mr. R. C. Hider * £293 per annum inclusive. Head Messenger and Office Keeper Non-Service Mr. J. Birch * £450 per annum inclusive. Lately in charge of Printing and Stationery. Now on leave. Non-Service *Under notice to leave. †Permanent Civil Servant. ‡Qualified at Civil Service Clerical Examination.
asked the President of the Board of Trade whether he is aware that of the total cost of the Food Department, amounting approximately to £300,000 per annum, no less than one-sixth appertains to the estab- lishment division; and whether, in view of the fact that the executive staff are engaged in liquidating transactions amounting to £1,000,000,000, he will explain why such a large proportion of the cost is absorbed by a branch consisting principally of women engaged on Departmental routine duties, most of which could now be relegated to juniors in the permanent Department?
The establishment division, costing at present approximately one-sixth of the total charge, comprises all the staff engaged on the common services of the Department, i.e., registration of papers, typing and shorthand, messenger services, cleaning, etc., which are essential to the work of the executive staff engaged on liquidation. It is not, of course, practicable to transfer all these routine duties to the Board of Trade headquarters, but certain work is being transferred as opportunity offers.
British Trade, New Zealand
asked the President of the Board of Trade if his attention has been called to the fact that the Prime Minister of New Zealand stated at Bradford that New Zealand importers were disappointed and annoyed when, after making inquiries, they were told that English firms could not supply their needs; whether such cases are ever brought to his notice, and, if so, what are the causes; and whether, in cases of this nature, he will make special efforts to prevent Dominion business going to other countries?
The answer to the first part of the question is in the affirmative. Instances of British firms being unable to supply the requirements of importers in New Zealand were brought to the notice of the Department of Overseas Trade in the earlier part of last year, when British manufacturers were still unable to cope with their orders, but I am not aware of any such cases having occurred during the current year. Every effort is made and will continue to be made by His Majesty's Trade Commissioners in the Dominions and by the Department to secure that the requirements of importers in the Dominions should be met from this country. I may add that both the New Zealand Government and traders in this country have expressed their appreciation of the work done by His Majesty's Trade Commissioner in New Zealand.
Greece and Turkey (Munitions)
( by Private Notice ) asked the Leader of the House if his attention has been called to the report of the Prime Minister's speech yesterday at the Supreme Council to the effect that nationals of the Allied Powers are to be allowed to supply arms and ammunition to the combatant Powers Greece and Turkey; if it is not a fact that the Supreme Council is itself responsible for the existing hostilities, and if it is consonant with the theory of the League of Nations or honour to encourage the present war by countenancing the supply of arms to the combatants?
I have received information that the Supreme Council yesterday agreed to continue an attitude of strict neutrality in the war between the Turks and Greeks, that is to say, the Governments agree not to intervene in the struggle with assistance of any kind, whether in form of troops, arms, or credit, it being understood that the above suggestion in no way infringes rights of private firms to freedom of trade. This is in strict accordance with the principles of International Law and the traditional practice of this country. The answer to the second part of the question is in the negative.
I will not ask the right hon. Gentleman the perfectly legitimate question as to whether the nationals of France are to be encouraged to supply one side, and the nationals of this country are to be encouraged to supply the other side, but I will ask him if the nationals of our ex-enemies—Germany, Austria, Bulgaria, and the rest of them—are to be allowed to send arms to one side, and are we to send arms to the other side; and is it absolutely necessary for this Government to keep wars alive in order to keep itself alive?[HON. MEMBERS: "Answer!"]
Is it not a fact that the Bolshevist Government of Russia have been supplying arms to the Turks?
Can the Leader of the House say whether the Prime Minister had this statement in mind when he made his speech at the Hotel Cecil about the Prince of Peace?
Is it fair for this country, which derived so great an advantage from buying arms from private individuals in a neutral country during the War, namely, America, to interfere in this case?
My hon. and gallant Friend who put the last supplementary question has brought to the mind of the House what has been the habitual claim and practice of this country in this matter. It has claimed, as a belligerent, the right to buy arms and munitions from private traders in other countries. It has claimed for its nationals, when this country was neutral, the right of supplying, at their own risk but subject to the general principles of international law, arms or munitions to either of the belligerents. I do not propose to go further into the question which my hon. Friend (Mr. Herbert) said it was not his intention to put.
May we have the names of the firms who are to supply either one side or the other? How is it going to help our reputation in India and the rest of the world, from the point of view of the revival of trade?
My hon. Friend does not appear to be cognisant of the general principles of international law, and what are the rights or duties of a neutral. It is not the duty of a neutral to restrain its citizens from supplying arms to belligerents. We shall fulfil, in accordance with the decisions of the Supreme Council, the full duties of a neutral.
Does not the right hon. Gentleman think, in view of the establishment of the League of Nations, with all its implications, that the international law or practice to which he has referred should now be reversed?
I confess I do not think that follows. It would be a very large decision to come to, merely because we had hoped that, in the future, the League of Nations might prevent many wars if not all wars.
Can the right hon. Gentleman give any precedent to the House of an International Conference passing a resolution which will be construed as an encouragement to supply arms to both sides in a war?
Would it be? in order to ask for an adjournment so that the House may benefit by greater information offered them from the Labour Benches, the Wee Frees, and other hon. Members who, no doubt, would put us on the right road?
Safeguarding of Industries Bill
May I ask the Leader of the House whether, in view of the fact that the Debate to-day will deal with foreign treaties, and the machinery for the collection of the new Customs duties, it will be possible for representatives of the Foreign Office and of the Treasury to be in attendance?
I have made inquiry, and understand that my right hon. Friend the President of the Board of Trade is in full possession of all the information that can be obtained from those Departments, and the presence therefore of representatives of the Departments during the Debate is unnecessary.
Does the right hon. Gentleman tell the House that, in a matter which concerns both the Customs Department and the Foreign Office, it is unnecessary for even the subordinate Ministers representing those Departments to be present? Why is that so?
If it would really give any satisfaction to the hon. and gallant Gentleman to have my two hon. Friends (Mr. Hilton Young and Mr. Cecil Harmsworth) here to listen to any speeches he may wish to make, I am sure my hon. Friends will be anxious to oblige him.
Business of the House
May I ask the Leader of the House to state what business it is intended to take late to-night; whether it is intended to take any business to-morrow after the first Order already announced; what business is to be taken next week; and can the right hon. Gentleman now state more definitely when the House may be able to adjourn?
We hope tonight to take the following Orders:
As regards to-morrow, we do not propose to take any further business beyond the Third Reading of the Safeguarding of Industries Bill.
As regards next week, we propose to take
On Monday, Expiring Laws Continuance Bill and further stages of other Orders on the Paper.
I hope we shall also be able to take the Lords Amendments to the Corn Production Acts (Repeal) Bill. I also propose to take the Motion standing in the name of the hon. Member for the Pollok Division of Glasgow (Lieut.-Colonel Sir J. Gilmour) with reference to the Guards Memorial.
On Tuesday and Wednesday we shall take the Second and Third Reading of the Consolidated Fund (Appropriation) Bill.
I am not in a position to announce further business, as this necessarily depends upon the progress of Government Measures in another place. Neither can I give any definite informa- tion to the House as to the date of Prorogation for the same reason, but I am riot without hope that it may be possible to wind up our business next week. I say I am not without hope, but it depends on the business in another place. I think it would be convenient I should deal with the question of my right hon. Friend the Member for the City of London (Sir F. Banbury) as to business if he will now put it.
I understand the business next week has been announced by the Leader of the House. I was not present myself, but I am told the right hon. Gentleman made a very bitter attack on the Estimates Committee. I should like to inform the House that I have taken steps to secure that an un-corrected proof of the evidence shall be in the Vote Office on Monday and available to hon. Members on that day. In these circumstances, if I am correct in the information I got, that a very grave attack has been made on the Committee by the Leader of the House, may I ask the right hon. Gentleman if he will give a day for the consideration of that evidence after Monday, when the evidence will be available to hon. Members?
Had my right hon. Friend been in the House when I answered the question, he would have found that I had, by anticipation, replied to his question. Nobody who heard me can say that I spoke bitterly on the matter.
I was not here.
May I add that the right hon. Gentleman is so constant in his attendance here that I did not take the precaution, and I regret it, of calling his attention to the question on the Paper, and saying that I was going to refer to the matter. I am very glad to hear that the evidence will be available on Monday. It may be possible to discuss the matter on the Consolidated Fund Bill, but, if that is not practicable, then, if there is time, we may find another opportunity for the discussion. I have already said I shall be glad to have a discussion.
May I ask if it is intended to proceed with the Summer Time Bill, which is on the Order Paper, and which I thought had been dropped? May I also ask, with reference to the Law of Property Bill, if it is proposed to take that before the end of the Session?
The Summer Time Bill remains on the Paper because the House has not yet directed that the Order for it shall be discharged, but it is not proposed to take either of the Bills referred to by the hon. and gallant Gentleman in the present Session.
May I ask the right hon. Gentleman whether any statement will be made by himself or the Prime Minister early in the proceeding-s on the Consolidated Fund Bill on the recent Council in Paris and on foreign policy as affected by that Council generally, so that we may be able to discuss it?
The House will understand the difficulties of giving precise answers to questions of this kind while the Prime Minister is still engaged in the important conferences in Paris, but I anticipate that on the Consolidated Fund Bill he will be in a position to make a statement as to what has passed in the Conferences and as to the decisions come to, and on other very important public matters about which the House would desire to be informed before it is prorogued.
Telegraph (Money) Bill
Reported, without Amendment, from Standing Committee C.
Report to lie upon the Table, and to be printed.
Minutes of the Proceedings of the Standing Committee to be printed.
Bill not amended ( in the Standing Committee ), to be taken into consideration To-morrow.
Performing Animals
Report from the Select Committee, with Minutes of Evidence, brought up, and read [Inquiry not completed];
Report to lie upon the Table, and to be printed.
Bills Reported
Adamson's Divorce Bill [ Lords ],
Reported, without Amendment, from the Select Committee on Divorce Bills; Report to lie upon the Table.
Bill to be read the Third time.
Hamilton's Divorce Bill [ Lords ],
Reported, without Amendment, from the Select Committee on Divorce Bills; Report to lie upon the Table.
Bill to be read the Third time.
Ordered, That the Minutes of Evidence and Proceedings in the House of Lords on the Second Reading of Adamson's Divorce Bill [ Lords ] and Hamilton's Divorce Bill [ Lords ], together with the documents deposited in those cases, be returned to the House of Lords.—[ Sir Henry Craik. ]
Message from the Lords
That they have agreed to,—
Manchester (Police, etc.) Provisional-Order Bill,
Pier and Harbour Provisional Orders (No. 1) Bill, without Amendment.
Nuneaton Corporation Bill, Burnley Corporation Bill, Wigan Corporation Bill, with Amendments.
Amendments to—
Rhymney Valley Water Board Bill [ Lords ],
South Essex Waterworks Bill [ Lords ],
Hastings Tramways Bill [ Lords ], without Amendment.
TRUSTS (SCOTLAND) BILL [Lords]
Reported, without Amendment, from the Standing Committee on Scottish Bills.
Report to lie upon the Table, and to be printed. [No. 215.]
Minutes of the Proceedings of the Standing Committee to be printed. [No. 215.]
Bill, not amended ( in the Standing Committee ), to be taken into consideration To-morrow.
CRIMINAL PROCEDURE (SCOTLAND) BILL [Lords]
Reported, without Amendment, from the Standing Committee on Scottish Bills.
Report to lie upon the Table, and to be printed. [No. 216.]
Minutes of the Proceedings of the Standing Committee to be printed. [No. 216.]
Bill, not amended ( in the Standing Committee ), to be taken into consideration To-morrow.
Publications and Debates
Report from the Select Committee, with Minutes of Evidence and Appendices, brought up, and read.
Report to lie upon the Table, and to be printed. [No. 217.]
Orders of the Day
Safeguarding of Industries Bill
[2ND ALLOTTED DAY.]
As amended, further considered.
CLAUSE 2.—(Power of Board of Trade to apply Part II to certain goods.)
(1) If, on complaint being made to the Board to that effect, it appears to the Board that goods of any class or description (other than articles of food or drink) manufactured in a country outside the United Kingdom are being sold or offered for sale in the United Kingdom—
Provided that the Board shall not so refer any matter involving a question of depreciation of currency unless they are satisfied that the value of the currency of the country in question in relation to sterling is less by thirty-three and one-third per cent., or upwards, than the par value of exchange.
(2) If the committee report that as respects goods of any class or description manufactured in any country the conditions aforesaid are fulfilled the Board may by Order apply this Part of this Act to goods of that class or description if manufactured in that country:
Provided that no such Order shall be made which is at variance with any treaty, convention or engagement with any foreign State in force for the time being.
(3) If at the time when it is proposed to make any such Orders the Commons House of Parliament is sitting or is separated by such an adjournment or prorogation as will expire within one month, the drafts of the proposed Orders shall be laid before that House and the Orders shall not be made unless and until a Resolution is passed by that House approving of the drafts either without modification or subject to such modifications as may be specified in the Resolution, and upon such approval being given the Orders may be made in the form in which the drafts have been approved.
In any other case an Order may be made forthwith, but all Orders so made shall be laid before the Commons House of Parliament as soon as may be after its next meeting, and shall not continue in force for more than one month after such meeting unless a Resolution is passed by that House declaring that the Orders shall continue in force, either without modification or subject to such modifications as may be specified in the Resolution; and, if any modifications are so made as respects any Order, the Order shall thenceforth have effect subject to such modification, but without prejudice to the validity of anything previously done there-under.
Any Order approved or continued under this Sub-section shall have effect as if enacted in this Act.
I beg to move, in Sub-section (1), after the word "Kingdom" ["manufactured in a country outside the United Kingdom"], to insert the words, "not being a country allied or associated with the United Kingdom during the War."
Apart altogether from the sentimental appeal which I think this Amendment will make to every Member and from the apparent and implied argument that unless we insert this Amendment the Bill will be detrimental to an Allied country, I want us to consider it from the business point of view. During the long and anxious days of the War we were hoping that the alliance which had grown out of the War, and which had become one of most deep sympathy and affection would continue and result not merely in better relations throughout the world, but in an increase of business to the mutual profit of all the Allies. Here at the earliest possible moment, instead of pursuing that intention, the Government are beginning an economic and tariff war upon our late Allies. We are attempting to penalise our Allies by these import duties in a manner and to an extent which we are not doing in the case of our late enemies. That is repugnant to the instincts with which we regard our late Allies, and it will, I believe, result in very bad business to this country. Although this Amendment may appear to mean that we shoud not include our late Allies because it would seem ungracious and unjust, the fact is that we are not merely going to inflict an economic injury upon France, but we are going to inflict a greater economic injury upon ourselves.
I do not suppose that there are any statistics, or that they could be collected, which would show the enormous business done in this country, particularly with France, when this was a Free Trade country; but I am perfectly sure that if this House had any idea of the number of businesses in this country engaged in what I like to call extra territorial trade—trade which does not belong to this country and which only came to this country and could only be conducted in this country because it was a Free Trade country—it would be astonished at the amount of capital involved and the amount of profit we derived through our banks and merchant ships. I remember 10 or 12 years ago coming back from France with a silk manufacturer who was coming to London, to buy silk made at Lyons, because the silk manufacturer at Lyons would only sell his silk in the whole piece. He wanted 20 or 30 yards of different holdings, and he actually came from Paris to buy in London silk made in Lyons to the advantage of our railways, our merchants, and our banks. I do not suppose that the House has any idea of the amount of that sort of business—one only knows of cases which come before one's own notice—which we had with various continental countries, and particularly with France, because there were none of these restrictions which this Bill is going to impose.
The Government should accept this Amendment. Otherwise, the Bill is repugnant to our sense of justice, and makes hopeless any prospect of those better relations which we thought would result from the Alliance. It puts us in the miserable position of injuring our Allies at a time when France is desperately anxious about her financial position, and when we are hoping that everything that can be done will be done by our Government and by public opinion to promote and extend peace and goodwill. Surely on these grounds, supplemented by sound business grounds, there is an appeal to which the Government ought to respond. Apart altogether from that, however, it will certainly hurt us. It will hurt us in cur reputation, and it will hurt us in our pockets. We ought at this time to be careful of both, and I do urge the Government, if they cannot in some way accept this Amendment, by some overt expression of policy to lay down what I believe is really in their minds and hearts—a policy of goodwill towards our late Allies—and to take some steps to alter this miserable and unhappy position in which under this Bill we are treating our late Allies worse than our late enemies.
I beg to second the Amendment. After the able speech of the Mover, it needs very few words from me. This matter was dealt with very fully last night in a very able manner by the hon. Member for Harrow (Mr. Mosley). One often hears from the benches opposite of the necessity of preserving good relations between ourselves and our Allies, but those benches now are practically empty.
What about your own benches?
There is a very much larger proportion of Members present on these benches than on the benches opposite. I know that they will come into the House directly to vote against this Amendment, not having heard one word of the discussion. They will be shepherded into the Lobby by the Government Whips, and, when they come in, they will ask one another what the Division has been about. Here is an opportunity for hon. Members to put into practice that which they have been preaching. France, at any rate in this respect, deserves our help and sympathy. France is at a disadvantage as compared with Germany. We refused Germany admission into the League of Nations, but we now introduce a tariff system which will tell heavily in her favour. Is that what we have been professing to do during the past two years? It is only on a par with the confusion caused by this conglomerate Government and this conglomerate Bill, pushed from behind by the vested interests in this House, who have already worn out the back door and the front door of the Board of Trade pressing the case of those trades in which they are interested. I second the Amendment without any hope that it will be passed, but just to place on record the votes of those hon. Members who profess such sympathy with our Allies, but who, when the opportunity comes, will go into the Lobby to oppose a proposal to give practical effect to that sympathy.
I have every hope that this Amendment will be accepted, because in the course of the extensive discussion on this subject which we had last night the President of the Board of Trade stated that in fact France would be excluded from the operation of this Bill—a new view since the Second Reading. On the Second Reading, in reply to the right hon. Gentleman the Member for Paisley (Mr. Asquith), he stated that the Measure would be applied impartially all round, and that was said also in regard to the specific point whether it would be applied to France. The right hon. Gentleman last night stated that in the case of France there was no bounty on her exports between the external and internal value of her currency as in the case of Germany, and that it was consequently without the scope of this Measure.
If that be so, and the Measure is not to be applied to France, there is no reason at all why the right hon. Gentleman should not make a beau geste and give statutory effect to that assurance. Last night I ventured to ask the right hon. Gentleman whether, in the event of France, by some fluctuation in the exchange, being provided with this bounty on her exports which would be occasioned by a difference between the internal and external values of her currency, this Bill would apply to her exports, and he did not give any assurance upon that point. It is evident that, if such a fluctuation does take place, and France is afforded a bounty on her exchange which is less than the bounty accorded to Germany on her exchange, then this tariff does, in effect, operate as a preference for Germany as against France. The reason is that, the greater the bounty on exchange, the cheaper can the country suffering from the depreciated exchange, export to our markets. Germany, in all probability, will always, or at any rate for a long time, suffer a greater measure of depreciation than France, and consequently German exports will be cheaper than French. We apply, not a duty in relation to the bounty afforded by the exchange, but a flat rate duty on the value of the goods to the amount of 33J per cent. Consequently, the cheaper the goods imported to our market, the lower will be the duty. The greater the necessity for protection, the less protection we in fact afford.
Assuming, for the sake of my argument, that owing to the large bounty on her exchange Germany can import goods into this country to the value of £50, while France, owing to her less advantageous situation from the exporting standpoint, can only put similar goods on our market at the price of £100, what is, then, the situation? You have a flat rate duty of 33⅓ per cent. The German bears a duty of about £17, while the Frenchman bears a duty of about £33. In other words, you are constituting a preference in favour of the German and discriminating against the Frenchman. Instead of the old Tariff Reform slogan of "Colonial Preference," we are erecting the new dogma of German preference. These facts are further illustrated by some figures given by the hon. Member for Chippenham (Mr. G. Terrell), which I ventured to read during the dinner hour last night, and which, with the leave of the House, I will read again. When the mark stood at 240 to the £, Germany was exporting pianos to this country at the price of £34, owing to the large bounty on her exchange, and they bore a duty of £11 10s. When the franc stood at 50 to the £, France was exporting a similar piano and putting it on our market at the price of £70, and that piano was bearing a duty of £23. In other words, the Frenchman was bearing a duty which was over double that borne by the German, despite the fact that the necessity for protection in the case of the German piano was much greater. The protection afforded is in inverse ratio to the necessity for that protection, and, in the event of a fluctuation in the exchange which affords France a lesser bounty than Germany, but, at the same time, brings her within the scope of this Bill, the Bill does, in fact, set up a preference which discriminates against France in favour of Germany. The right hon. Gentleman assures us that at present France is outside the operation of the Bill, but it is more than conceivable, in the present financial chaos prevailing in Europe, that France may in the very near future come within the scope of this Bill. Can the right hon.. Gentleman, by the acceptance of this Amendment, give an absolute assurance that in that event we shall not constitute a tariff of this nature which will in effect erect a preference in favour of Germany as against France?
It is indeed an amazing thing that it should be necessary for this House to discuss this Amendment at all. I can hardly conceive that, when the Government first adumbrated their fiscal policy, they contemplated that there would be proposals of this nature affecting Allied countries with whom we had been fighting in the great struggle through which we have passed. That the House finds itself confronted with the necessity for discussing this proposal is an illustration of the fact that you can never begin a protective policy, in however small a measure, without being led further and further than you originally proposed. The Prime Minister has said very truly that protection is like a quicksand—the more you struggle the deeper you sink; and I think there could be no truer illustration of that statement than the fact that it is necessary now to discuss this proposal.
In the earlier stages of this controversy it was said again and again that this was a policy which was based upon the Paris Resolutions, to which the right hon. Gentleman the Member for Paisley, and those associated with him, were deeply committed. We hear very little of that taunt to-day, and I think the reason is obvious. The Paris Resolutions may have been wise or unwise in the circumstances in which they were proposed, but at any rate the Paris Resolutions were perfectly definite in their character. They were admittedly and avowedly a war measure. They proposed that in certain eventualities the War which was then being carried on should be supplemented by an economic war, and avowedly and admittedly they were designed to hamper the development and injure the commerce of enemy countries. In the Paris Resolutions our Allies in the War were associated with us, and the proposal was, not that this country should act alone, but that this country should act in cooperation with its Allies in the furtherance of that economic war. If it be true that this Bill and the proposals contained in it are in the main based upon the Paris Resolutions, it appears to me that the Government have no escape from the comment that they are now proposing to enter into an economic conflict with our Allies in the late War; and they are doing that at a time when the War is not even yet technically over, when the Supreme Council which directed the War is still in being. I think it will be extremely difficult for the Government to defend a proposal of that kind.
If we are to discuss this proposal intelligently, the House is entitled to some further information than it has yet received as to the intentions of the Government. The Minister of Health said last night that this was a Measure which had been very carefully thought out. If that be so, I cannot imagine that the President of the Board of Trade has not considered what is to be the effect of the Measure upon Allied countries, and, indeed, upon every nation with which we have commercial relations. Certainly, whether the Measure will be applied or not to those Allied countries, as to other countries, depends very largely upon what is to happen under the later provision in the Bill that no Order is to be made under the Bill which is at variance with any treaty, convention, or engagement with any foreign State in force for the time being. I think we are entitled to ask the right hon. Gentleman with what countries such treaties or conventions exist. We are entitled to a fuller answer than we have yet received as to that, and we are also entitled to inquire which of those treaties or conventions it is proposed to denounce. If those countries include Allied countries, there can be no doubt that, in the case of those Allies, when those treaties are denounced, it is a clear intimation of the opening of a tariff war with them.
In these circumstances, I think there is a very strong case for asking the Minister in charge of the Bill to accept this Amendment, and I would ask him whether, assuming that the Bill is to pass and become operative, it would really be weakened by the acceptance of this Amendment? That, of course, entirely depends upon how it is proposed to apply it, but I assume, in the words of the Minister of Health, that that is a matter which has been carefully thought out. So far as the application of the Bill in regard to the question of depreciated exchanges is concerned, it has already been pointed out, and the President of the Board of Trade admitted last night, in answer to the hon. Member for Harrow (Mr. Mosley), that in that matter the Bill would apply practically to ex-enemy countries only. If so, then it is not pro- posed, at any rate, to apply that section of the Bill to Allied countries. It would not apply to France, according to the President of the Board of Trade. It would probably not apply to Belgium, again, according to his answer last night, although he said that that is a question which would require very careful examination. I assume, however, that that examination must have been made, if the Measure be the carefully thought out Measure which we have been told it is. The right hon. Gentleman said that the countries to which this provision in regard to depreciated exchanges would apply would be Germany, Czecho-Slovakia, Poland, Esthonia, and perhaps Finland. He omitted to quote Russia, certainly not because the exchange is not depreciated there, but probably because he realised that a duty of 33⅓ per cent. would be perfectly farcical for the purpose of rectifying the exchange with Russia. Indeed, the application of this Bill in any form to Russia would be entirely farcical under present conditions. But so it would with regard to Czechoslovakia. In that case also it is perfectly farcical to suggest that a duty of 33⅓ per cent. would have any effect whatever in rectifying the exchange. If this Bill is to be applied to that struggling little country it would be an unfriendly act on the part of this country. There remain among the European countries France, Belgium, and Italy. The case of France has been fully dealt with already, and I do not propose to develop the argument further with regard to France. With regard to Belgium, she is bound to this country by a thousand ties, and I am sure that there is no British citizen who would not feel that it is extremely undesirable that any action should be taken which could be construed in the slightest degree as being unfriendly to that gallant country. So it is also with regard to Italy. Let me make this point perfectly clear. In proposing this Amendment it ought not to be supposed that what we desire is to group Europe permanently into two hostile camps. Nothing could be further from our desire. The destruction which has been caused by the Great War will only be justified if as a result we are able to lay down the foundation of a permanent and lasting peace between all European countries. We would desire that at the earliest possible moment old hatreds should vanish, and there should be a desire to build up anew friendly relations between all the nations of Europe. We certainly do not desire that there should continue to be that material or economic warfare between the Allies and their enemies in the late War. In putting forward this Amendment we are not committed to that proposition.
From our point of view, the Measure is bad, not only as applied to the Allies, but as applied to our ex-enemies. We believe that nothing would be more likely to help a lasting peace in Europe than that the principles of Free Trade should be applied throughout the whole of the European countries. The Government have taken a different view. We believe, even as applied to Germany and to Austria, this Measure would work nothing but harm. If the Government insist on proceeding with the Measure as applied to the enemy countries we can but register our protest. But even approaching the matter from their point of view, there is no reason why they should not accept this Amendment. Let them proceed, if they will, with their Measure, but let them make it clear to the world that the common endeavour, the common sacrifice, which bound Great Britain to her Allies during the War renders impossible any idea of any warfare, either material or economic, between this country and our late Allies, at any rate during the lifetime of the generation who were engaged in the struggle, and the generation which follows, and who only hear from their fathers the story how gallantly these Allies stood together for the purpose of carrying through this great struggle to a successful issue. I appeal to the Government to accept the Amendment. If this appeal falls upon deaf ears, I make it to hon. Members behind them. They have followed the Government slavishly into the Lobby. They have committed themselves to all sorts of propositions which are mutually inconsistent. They have allowed their judgment to be overridden with regard to many important matters. I do not say party loyalty may not be a very fine thing. With certain limits that is so, and no one would deny it, but there must be some limit to party loyalty, and I believe hon. Members will be interpreting the feeling of the country if they go into the Lobby with us and make it clear that, whether this Measure is to go forward or not, at least nothing shall be done to weaken the ties of friendship and brotherhood between this country and the Allies who fought so gallantly with us.
I hope the Government will not accede to the request to alter the Clause as suggested, and in asking them to do that I ask them with just as much sincerity as the proposers of the Amendment ask for it. I cannot quite understand why we are always charged with insincerity and slavish following of the Government, because we agree with the Government. I think hon. Members make so many accusations about particular parts of this Bill that it leads one to think they themselves are somewhat inconsistent, because it appears at any rate inconsistent when they say that there are only certain parts with which they disagree, whereas in reality it is the whole Bill and every part of it with which they disagree, and I think they would wish to see it removed entirely. That is why I ask the Government not to accede to this request, because I have a recollection of another Amendment where the Government partially met their request. I refer to the point in a previous arrangement, where we were asked to make the price of articles in the exporting country 10 per cent. below the cost price. The Government met the position by agreeing to a 5 per cent. reduction, and since then we have seen in the organ which represents perhaps better than any other their feelings and wishes, that the Government by accepting it practically made the Bill, as far as their intentions are concerned, almost null and void. It is rather unfair of them to ask the Government to meet them in specific cases, and then to accuse the Government of spoiling their own Bill by doing so! I certainly think they ought not to ask for any specific treatment of the countries mentioned, and it would have been a better title for the Bill in the opinion of hon. Members opposite had it read something like this: "A Bill for the Safeguarding of Industries of every country outside Great Britain." I have a strong feeling with regard to the industries inside this Kingdom, and I cannot quite understand the tremendous concern of my hon. Friends with regard to the in- dustries of other countries. They seem to be very concerned about France.
I should like to mention one or two points in reference to industry with regard to France and this country. I am engaged and interested personally in the manufacture of motor tyres, and it will probably be said by hon. Members that the only interest I have in business is the interest of profit making. Those who know me best would say I have another interest besides profit making. With regard to this question of tyre making, for two or three years we have been approached by friends in France to try to set up a factory in that country, with the intention of making tyres with our own patents, and under our own conditions. For financial considerations we could not accede to that request. But why did they want us to establish this concern in France to make tyres? They know very well that there is not the slightest possibility of us ever importing tyres into France. But what is the reverse position? We are asked by hon. Members to give them more favourable conditions in comparison with ex-enemy countries.
Then the Bill does apply to France?
I say it certainly should do. That is my opinion. On the reverse side, let us look at the trade as between France and ourselves. If you ask any tyre manufacturer he will tell you that the greatest competition we are suffering at present is from France. Particulars were taken the other day of the number of foreign makes of tyres out of a large number, and hon. Members will be surprised to learn that 70 per cent. of the tyres in use were of foreign make. It is all very well for them to say, "What about the industries in poor Germany, and what about the industries of poor France?" I would say, "What about the industries in poor England?" I should think a great deal more about their arguments if they would tell us that Germany that they are so much concerned about, and in this country of France that they are equally concerned about—or perhaps rather more or perhaps rather less, I am not quite so sure—that the unemployment in Germany was a great deal greater than it is in this country; or if they could tell us from statistics that unemployment in France was a great deal more than it is in this country. After all, the idea of this Bill is not to safeguard the industries of France and Germany. As I understand the intention of the Government, it certainly would be more to safeguard industry in our own country, and my principal reason for supporting the Bill is that it would safeguard them, with a view to giving more regular and continued employment to our own people.
As far as I can gather from the "Labour Gazette," unemployment in Germany is infinitesimal. In France it is more than in Germany, but in neither case is it anything like so great as it is in our own country. I should like hon. Members to give their minds a little to that consideration, which, after all, is our point of view—not so much to be considering the consumer. I ask them not to consider altogether the consumer, but to consider the purchaser. Perhaps they are something like me, and it takes a great deal of time to knock an idea into their minds. Do not forget that every married man in this country who is a producer—[ laughter ]—I hope the hon. Member who laughs will himself become one of the number before very long—is looking after the interest of three or four consumers. Therefore the security of tenure of his employment is far more important to the whole of the consumers than the question whether the whole of the consumers should be able to buy their goods at a slightly lower rate. The demon of cheapness has been apparent for too long. I would rather see goods dearer in this country, much dearer if you like, if every member of the working classes—and those who are not working classes—could be usefully employed. By this Bill we shall do more good to what I think should be, whether it is or not, of paramount importance to us, and that is the safeguarding not of other people's industries, but of our own.
Captain BENN: It seems to me a thousand pities that we have not more opportunities of hearing the real supporters of this Bill. Whenever one of them stands up to expound the Bill we get a flood of light exceeding far in brilliancy even that which is thrown on the Bill by the speeches of the President of the Board of Trade himself. The hon. Member has made a most interesting speech and, whether it was his great didactic power or rather higher powers of apprehension on my part, I understood thoroughly what he said and got a firm grip on the principles he laid before the House. He thinks it would be on the whole a good thing if things were dearer. He is in agreement with the Minister of Health, who says that the Bill is going to make things dearer.
And employment better.
That is a more difficult point.
I said that.
The Bill is intended to make things dearer, and that is a very useful postulate to get clear before we start a further examination. Then the hon. Member says that too much attention is paid to the consumer. That is another very useful argument to mate clear. In his opinion, this Bill does apply to French products. That is a very useful confession, and I am quite sure that if it does not apply to France the hon. Member will be so disappointed that he may feel bound to take some extreme step. I want to speak about the position of this country in its Treaty relations with other countries. I am glad to see the Under Secretary of State for Foreign Affairs present, because he is always extremely courteous, although not always informative. I know what he feels on this subject, for in a speech that he made to the International Congress of Chambers of Commerce he said that free interchange and the removal of trade barriers was what was needed at the present time. Therefore I do not think that he is a very warm supporter of the Bill. The particular point to which I wish to draw attention is the question of our relations with France, and I hope he will be able to give us some categorical answers to some categorical questions in regard to France, especially in view of the fact that the supporters of the Bill believe that it applies to France. That is a matter of concern, especially now that our relations with France are difficult and delicate.
Let us clear the ground as to our position in regard to these Treaties. I understand the provision of the Bill to be this, that if a complaint is made about one article from one country, and the ground of the complaint is substantiated before the Committee, a general Order will be made applying to all the articles of that class or description. Supposing it is shown that in regard to one article imported from France, such as lace or gloves, the offence is being committed as described in the Bill, then the duty will be laid on the whole of the articles of that class or description. The right hon. Gentleman may say, "You must look at the second part of the Clause, which provides that the currency must be depreciated 33J per cent." As regards most of the European countries, that depreciation does actually exist. Certainly as regards France, Belgium, Italy, and nearly all the countries it exists. The figures which I have at my disposal are up to the 20th July, and in a very large number of countries in Europe the 33⅓ per cent. depreciation exists. Supposing a country comes within that category, the right hon. Gentleman will say that the question has to come before the Committee. May I remind him that the Committee has absolute powers in the Recess. When this House rises next week the House of Commons, the taxing authority, will have no more power to interfere with these duties than any individual until we meet again, perhaps in November, perhaps in February. Therefore these two safeguards which the right hon. Gentleman may mention are not of particular, certainly not of very complete, value.
We have Treaties with a very large number of countries. We have a Treaty embodying the well-known most-favoured nation Clause with quite a number of countries; I think with all the countries of Europe except France, ex-enemy countries and Russia. In answer to a question on the 26th July a list was published of all these Treaty countries. Does the President of the Board of Trade intend that these Treaties should be denounced or does he intend that they should not be denounced? It is quite obvious that we cannot give a considered opinion upon this Amendment until we know the answer to that question, whether he intends to denounce the Treaties or not. Supposing he says: "No, we will not denounce the Treaties." What then becomes of the support he has received from the hon. Member for Chippenham (Mr. G. Terrell)? What becomes of that very interesting exhibition that was held in Millbank? I have a copy of the catalogue presented to me, and I keep it as an interesting souvenir. If the right hon. Gentleman would look at that catalogue he would see that in connection with most of the articles the complaint was not against Germany, or against Austria, although Germany was one of the chief offenders, but against Belgium, Italy and France, and in some cases Czecho-Slovakia and the countries of Eastern Europe. If these Treaties are not going to be denounced nothing is going to be given to the hon. Member for Chippenham. In the complaints that have been in the Press we find that although a good deal of complaint is made against Germany, many of the complaints are made against Italy, and particularly Belgium.
The Noble Marquess in the other House gave us a long catalogue of subjects that have been the subject of extremely interesting deputations that wait day by day upon the President of the Board of Trade, particulars of which we have not the privilege of receiving in this House. These are the facts which make it important that the Bill should be passed before the rising of Parliament. The articles for which they asked protection are articles which come very largely from countries in which the most-favoured nation Clause exists. Therefore, we are entitled to ask, in fact we must know, what line the Government is going to take in regard to these Treaties. The President of the Board of Trade may say, "Wait and see. Let us have the case before the Committee, and then we can decide the point." But we shall not be here. The Committee will begin to sit immediately the Bill is passed into law; complaints will be made, and the President of the Board of Trade will then have complaints before him, and he will have to decide whether or not he is going to denounce certain Treaties. We shall not be here to ask and he will not be here to explain it to us. Therefore we are entitled to ask in advance these questions.
Supposing cases of importation of the goods described in paragraph ( b ) are established before the Committee, what will be the policy of the Government? Do they intend to denounce the Treaties or do they not? We are entitled to a perfectly straightforward answer. If they do not denounce the Treaties the case that has been made for the Bill, and the hopes of the hon. Member for Chippenham and the hon. Member for Stockport (Mr. Greenwood), will be dashed, because the goods of which they complain come from countries to which the most-favoured nation Clause exists. Although I am well aware that pledges from one Parliament to another are not binding, I would remind the right hon. Gentleman that it was stated by the right hon. Member for Central Glasgow (Mr. Bonar Law) that denunciation of the Treaties was the course that was going to be followed. Sir Edward Carson put a question to the Prime Minister. He asked
Therefore, so far as the information that has come to us goes, it is the intention of the Government to denounce those treaties which contain the most-favoured nation Clause. What would be the effect of such a course? It would be a most crippling thing for the whole of our industry the world over, with the exception of three countries. It would involve us in tariff wars, in tariff disagreement, or at any rate might subject our merchandise, our exports on which we rely so greatly, to severer treatment in their most important markets, at a time when our export trade is more important to us than at any other time.
What is the position with regard to France? We know that the French have increased their tariff. A few days ago I read in the "Manchester Guardian" a statement that it is highly probable that in the interests of British trade in France it will be necessary to make official representation against the increase instituted. Is that true? Has it been suggested that we should make official representation against the increase in the French tariff? I saw in one of the London evening newspapers some days ago that France has communicated with us in regard to this matter, and I believe that statement has been confirmed by the right hon. Gentleman. Has the Government answered that communication? Have we represented to the French that their tariff is injuring our trade? If so, what sort of locus have we, when we are proposing to impose a tariff on their goods? Surely it is not the moment, matters being as they are, for us to engage in anything like a tariff dispute or a tariff war with our Allies. We do not know what is the position, and I think the Under-Secretary of State for Foreign Affairs is the only man here who can really enlighten us. He has seen the correspondence. Perhaps he will tell us the effect of the correspondence. In any case, I suggest that this is one of the instances, by no means in a class by itself, and one of the most urgent reasons why, first of all, we should have a plain statement from the Under-Secretary and, secondly, why the Government should accept this Amendment, which is intended to avert what might well be termed a great misfortune.
The hon. and gallant Member has spoken about economic war, and the danger of developing such a war. Is it not a fact that already our Allies, or some of them, have started such an economic war?
I do not see why we should copy their example.
This Amendment raises a question which has occurred several times during these Debates, and that is, what interests are the Opposition standing for in opposing this Bill? Are they acting in the interests of the British consumer?
Hear, hear.
5.0 P.M.
The hon. and gallant Member says that it is in the interests of the British consumer. Although the speeches that have been delivered against this Bill are very contradictory, I must admit that in the majority of cases the speeches have been delivered against the Bill as if the duties would hurt the British consumer. The argument put forward was that an import duty on a certain portion of our supply will result in the price of the whole of our supply being raised by the amount of the duty, and that, therefore, the consumer will have to pay more for all the goods that he wants, no matter where they come from. That being so, what will be the effect of this Amendment? If it is carried you will have goods coming from Germany and other ex-enemy countries on which the duty is levied. You will have, probably, similar goods coming from those countries which have been our Allies, and on which no duty is levied. According to the arguments of the Opposition, the only result of that will be that the goods coming from the ex-enemy countries, or countries that were not our Allies in the War, will be raised in price by the imposition of the duty, while the goods coming from those countries that were our Allies will also be raised, so that the consumer will not benefit. The goods which enemy and other non-allied countries send to us will be raised in price by the amount of the duty according to the argument to which I have listened, and the goods from the other countries which are to be exempt from the duty will also be raised in price. Therefore there will be no benefit to the consumer, although the hon. and gallant Member tells us that it is the consumer for whom he stands. Certain individual exporters fram these allied countries or importers into this country will benefit by the extent of the duty put on the goods from enemy and other countries, and the Exchequer will lose the amount of the duty which this Amendment seeks to withdraw from the operation of the Bill. That is a peculiar way to help this country to become solvent.
If this Amendment is frankly to help our late Allies—and it seems to me from the speeches in support of it that the contention is that these duties will hurt our late Allies—then it follows that these duties will hurt an exporting country. What, then, becomes of all the arguments which we have heard that these duties will come upon the consumer in this country? Since the Opposition oppose these duties when levied on the countries not our Allies they stand self-confessed once more as the friends of every country but their own; but if these duties will hurt our late Allies, has not it occurred to those who oppose this Bill that those very Allies at the present time have got duties on our goods going into their country. What have the Opposition ever done with a view to getting those duties removed? If duties imposed by us on goods coming from France, Belgium, or Italy are going to injure these countries and make them bad friends with us, how about the duties which these countries levy on goods which we send to them? I say frankly that I am prepared to support this Amendment if hon. Members will show that it is an Amendment put forward in the interests of real Free Trade, and not like so many other Amendments for the mere purpose of obstruction or to get a few platform cries for the country.
If our late Allies are included in this Bill and these duties are going to hurt those Allies, then the duties levied by those Allies on our goods hurt us and deprive our producers of employment. Therefore I make this suggestion. I will support this Amendment if the Opposition can make it a means to bring us a step nearer to Free Trade by adding to it the words
I can claim for myself that I have one thing in common with my hon. and gallant Friend the Member for Leith (Captain W. Benn). I share with him those great features of eternal youth—a desire for knowledge and a capacity to learn. We are given to understand that we can control our passions and that we love people in accordance with the extent to which they reduce taxation, and that with a rise in taxation our love decreases. That affords a possible explanation, to me, of the energy that the hon. and gallant Member for Leith has displayed in performing his task. I am sorry to think how many countries in this world, including our late Allies, must have fallen from their high state in the affections of the hon. Member. The point we are debating this afternoon is a very simple one. I think it was touched on very clearly by my hon. Friend the Member for Stockport. It is that this is really a Bill for the safeguarding of English industries, and that in this Clause we are trying to prevent dumping. If dumping be a bad thing, it makes no difference, so far as this country is concerned, whether the goods are dumped from countries with which previously we have been at war, or were Allies, or were neutral. If it is done, it is the same in each case. I must say for myself that my feelings towards foreign countries are not affected in the least by whatever they may do with their duties, because I regard those as matters concerning very largely their own domestic affairs. It is their business primarily.
Though I myself, in the case of my own business, have been considerably hurt by the tariffs of foreign countries, I do not cherish any ill-will on that account, and I do not believe that anyone is going to have ill-will because of the effects of this Bill on their country. It ill-behoves people who keep a bulldog to guard their shop to blame us when we put a kitten in the back kitchen. It is true that in existing conditions it is extremely improbable—it is impossible at the moment—that the dumping duty will apply to any of our late Allies, but, after all, we do not want to lock the stable door after the horse has gone. We want to lock it in time, and we are trying in this Bill to make provision against possible harm to our trade throughout the next three years. For that reason it is essential, whether the danger is imminent or not, to have all the countries included in this Clause. Now as to the special points raised by my hon. and gallant Friend the Member for Leith. He asked me whether it is intended to denounce the existing commercial treaties. The answer I give him is the one which I gave him recently on the 6th July. It is not the intention to denounce them at the present time.
In any case?
It is impossible to answer that question. No Government could. But he need have no fear that this Government is going to denounce the treaties at present.
I am not familiar with the forms. Is it necessary to inform the House of Commons that a treaty is about to be denounced?
No, but I have no doubt that they would be. They always have been. But the denunciation of treaties is entirely for the Government. I think that in the year 1897 it was so done with regard to a German treaty.
A number of questions were put to the Government two or three years ago as to whether the Government would denounce foreign commercial treaties, and the statement was made on several occasions that they would. My hon. and gallant Friend the Member for Leith (Captain W. Benn) has referred to a question put by Sir Edward Carson, in answer to which it was stated, by the Government, that they intended to denounce foreign commercial treaties. Those statements were repeated. Now I understand from my hon. Friend that there has been a change of policy. Can he state exactly how that change of policy has come about?
I think that what my hon. Friend has stated is the fact, but the answer which I have given is the present intention.
Then there has been a change of policy?
I do not know about that. My hon. and gallant Friend also asked a question of the Under-Secretary for Foreign Affairs. I am sure that he will be the first to realise, having been a member of a Government himself, that this is not an occasion on which any statement could be made as to any negotiations or correspondence that might be going on. All I can tell my hon. Friend is that, so far as the new French tariffs are concerned, I have had a number of complaints brought to me, as President of the Board of Trade, from various trading associations in this country, and there is among them a great deal of apprehension. But, of course, we find that with the English trader at present with regard to a great many foreign countries, and we have to consider very carefully in what way we may be able to make representations to bring these matters to the notice of foreign countries, just as foreign countries make representations to us in any case where they think they are prejudicially affected. It is a very ordinary method of procedure, but I do not think that I need reassure the House that, so far as I am concerned, I am as anxious as anyone can be for the development of trade, between us and allied nations, due regard being kept all the time to the interests of our own people.
On several occasions since the introduction of this Bill Members on this side of the House have endeavoured to find out from the resident of the Board of Trade to which countries this Bill applies. By question and answer going back some weeks and by frequent questions across the Floor of the House, we have endeavoured to find out what is the policy of the Government. I ask the House to observe that on the closing day of the Report stage, within 24 hours of the Third Reading of this Bill, the Government announces its policy, as to whether these duties are to apply to our Allies and to ex-enemy countries. It is revealed for the first time that the Government do not intend to denounce a single commercial treaty. In other words, these dumped goods, which come from those countries, are to enter our ports. Time and again the House has been reminded of the serious position of our industries if these dumped goods enter our ports. Am I correct in assuming that goods dumped from France—
If the hon. Member will tell me what he means by "dumped," I will answer his question.
I will reply in the words of the Bill—goods sold in Great Britain at 5 per cent. below the wholesale price in France, which is causing unemployment in this country.
That is no breach of a Treaty at all. A duty can be put on without a breach of any treaty. It is in connection with exchange dumping that the treaty comes in.
I am sure the President of the Board of Trade is anxious that hon. Members on this side of the House should elucidate this very important point, and I am sure he will not take exception to my trying to find out the exact policy of the Government. Evidently the hon. Member for Chippenham (Mr. G. Terrell) is in some doubt on the matter. He has been a stalwart supporter of the Government and, evidently, at the last minute he finds that the Government policy does not coincide with the views which he has expressed in this House. There is to-day no commercial treaty with France. Therefore, dumped goods sold by France in this country below the wholesale price in the country of origin, will be subject to this duty. Will that apply to Belgium?
It applies to every country.
I am glad to have elicited that information. The right hon. Gentleman seems to take exception to my endeavouring to find out exactly to which country the Bill applies, and in view of the refusal by the Government on other occasions to answer explicit and definite questions, I think he should not take exception to my questions this afternoon. The Debate, at any rate, has revealed one point—that this Bill is to apply to our late Allies, that the Government have no concern with those who stood beside us during the War, that the Government are to treat our ex-enemies and our Allies alike, and are to give no preference to our Allies. The Debate has been useful in eliciting that information.
It is a matter of profound regret to me to hear that there is some apparent whittling down of this Bill. When the Bill was introduced it was to apply to all countries where the exchange was depreciated. Then the de- preciation was to exceed 33⅓ per cent. Today we hear that the foreign commercial treaties are not to be denounced. That is a new announcement, a complete change of policy on the part of the Government. The Bill is not to be applied to France or Belgium, and imports from those countries are to be allowed to compete against our manufacturers, while on the other hand, France, as we all know, is increasing her duties against this country. That is going to make a very great difference. It will be a great disappointment to a number of industries. I can quite understand that hon. Members above the Gangway are just as delighted as I am disappointed. The undertaking which has been given in the past was that a Bill would be introduced which would be helpful to industry. Now, step by step and inch by inch, industries are to be let down, and a Bill is to be passed which will be of very little use indeed. My regret and disappointment are increased by this circumstance, that here we are, left to the last day but one of all the days which have been devoted to this Measure, before we are told what the real intentions of the Government are.
I beg the hon. Member, when he has finished his speech, to read the answer given in this House on 6th July to the hon. and gallant Member for Leith. I quoted only the first sentence of it.
I asked questions repeatedly, and I asked the Leader of the House, and all I could get was the reply that these matters would be taken into account when the occasion arose. We have never had a definite statement until this moment.
Will the right hon. Gentleman read the reply given on 6th July?
The reply was as follows:
"It is not the intention of the Government to denounce any commercial treaties at the present time. If the inquiries provided for in the Bill disclose cases of dumping due to depreciation of exchange where an Order would be at variance with the terms of a commercial treaty, the desirability of denouncing such treaty will be considered."—[OFFICIAL REPORT, 6th July, 1921; col. 395, Vol. 144.]
It is perfectly obvious what was the intention at that time, and that if there came an occasion, as contemplated in the second part of the answer, the matter would have to be considered. We cannot consider what course we shall take in regard to a position which has not yet arisen.
The exchanges have been depreciated and therefore trade has been badly hit by imports from France, and unemployment has been caused All the conditions for putting the Bill into operation are in existence to-day, but we are told that it is not intended to apply this Bill. This is the first notice I have had, as regards France, that to put this Bill into operation it would be necessary to denounce the commercial treaty with France. I do not know what are the circumstances which have induced my right hon. Friend to take this course, but I do know that there has been a great deal of pressure put on the Government by the Coalition Liberal section in this House to whittle down this Measure. It has been constant pressure since the Bill was introduced. I am afraid that the Government will find a great feeling of disappointment amongst other Members of the House, that a Measure which might have been of use is now being whittled down until it is of no practical importance at all There is some slight measure of utility in it, as regards exports from Germany. Perhaps that will be further whittled down. A duty is not to be levied on the value of the goods; it is to be levied on the value of the exchange. It is really an impossible position. One cannot help feeling that the Bill in the form in which it is now to be put into operation is really a sham and a fraud.
It was not my intention to take up the time of the House. As most hon. Members know, I have been away for some time. I have had an opportunity of reading the Bill, and I have spoken to many Members of the House and asked their opinion. I have never yet heard expressed an opinion that is worth repeating in favour of the Bill. Every single man who has spoken about it has said that the Bill was a farce, and that it ought to be dropped. I want to make it perfectly clear that, as far as I am concerned, I stand by the pledges that I gave at the General Election; but this Bill does not embody those pledges.
The scope of the discussion must be limited to the application of the Bill to countries generally or to countries allied and associated with the United Kingdom during the War.
I apologise, but after the speeches of the hon. Membr for Stock-port (Mr. Greenwood) and the last speaker, I thought it was necessary to define one's position in a limited way. The licence given this afternoon was certainly very wide, but I wish to bow to the decision of the Chair, and to make it quite clear that, as far as I am concerned, I will support this Amendment, and every other Amendment, to mark my entire disapproval of the Bill.
I hope the Amendment will be withdrawn. I think we can trust our Allies, particularly the French and Italians, to have the sense to see that the insertion of this Amendment in the Bill will not help them in the least, inasmuch as the Bill cannot be applied to those countries, or any other countries
Reference has been made to our trade with France. The hon. Member for Stockport (Mr. Greenwood) said he was greatly concerned about the trade of this country. I am glad to find that on one small matter we are in accord. We are both concerned about the trade of this country. The hon. Member is especially concerned about the trade in which he is interested. I take a larger view. It is my privilege to represent a district which has something like two and a quarter miles of docks, and employs vast numbers of transport workers. I am especially interested in the question of trade with France. I have endeavoured to get the figures of the trade with that country. I was unable to get the figures for the year 1920, but it would interest the House to know that, whilst we imported from France in 1919 between £40,000,000 and £50,000,000 worth of goods, we exported to that country goods worth something like three times that figure. I hope that will show the hon. 'Member for Stock-port the desirability of retaining that trade, or even adding to it, and also that we are taking the wrong course in what we are doing to-day.
War material.
Had I been referring to 1915, 1916 or 1917 there would be some point in that interruption, but I was referring to 1919.
It was the balance of contracts.
It is impossible to argue the matter in detail at this stage. The figures I have given were the only figures I could find for that year. I ask the House to consider what will be the position, unless some alteration in made in this respect. Belgium has got her treaty, and can continue with her depreciated currency to trade as usual. Holland, her next-door neighbour, can go on as usual, and France, who has not got a treaty, is the only country of the three to be penalised, and France is the country with which we are doing such an enormous business, as I have indicated. We know the temper of the French people, especially at the present moment, and the effects that may arise from the action we are taking now, and from penalising them, as we must do under this proposal. Although some of my friends, seem to believe that there is not much in the provisions of this Bill, let me assure them that the reverse is the case. Already 40 to 50 trades have petitioned the Board of Trade alleging—and no doubt proving—that they are suffering from unemployment. These trades have got to prove to the Committee that they are suffering from unemployment, and that the unemployment is due to importation; but of course they can show that importation is going on, and that while importaton is going on unemployment is existing. The Committee will then have no option but to take action. When they take action, such as is contemplated, against France it will undoubtedly add to the irritation already existing between the two countries, and it cannot fail to have a very adverse effect upon the trade with which the hon. Member for Stockport and myself are so much concerned.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 59; Noes, 169.
Division No. 342.] AYES. [5.35 p.m. Acland, Rt. Hon. Francis D. Bell, James (Lancaster, Ormskirk) Collins, Sir Godfrey (Greenock) Asquith, Rt. Hon. Herbert Henry Benn, Captain Wedgwood (Leith) Davies, Alfred Thomas (Lincoln) Barker, G. (Monmouth, Abertillery) Bowerman, Rt. Hon. Charles W. Edwards, C. (Monmouth, Bedwellty) Barnes, Major H. (Newcastle, E.) Carter, W. (Nottingham, Mansfield) Edwards, G. (Norfolk, South) Barton, Sir William (Oldham) Clynes, Rt. Hon. John R. Finney, Samuel
Galbraith, Samuel Kiley, James Daniel Sykes, Sir Charles (Huddersfield) Gillis, William Lyle-Samuel, Alexander Thomas, Brig.-Gen. Sir O. (Anglesey) Graham, R. (Nelson and Colne) Maclean, Rt. Hon. Sir D. (Midlothian) Thomas, Sir Robert J. (Wrexham) Graham, W. (Edinburgh, Central) MacVeagh, Jeremiah Thomson, T. (Middlesbrough, West) Griffiths, T. (Monmouth, Pontypool) Morgan, Major D. Watts Ward, Col. J. (Stoke-upon-Trent) Grundy, T. W. Mosley, Oswald Waterson, A. E. Guest, J. (York, W. R., Hemsworth) Myers, Thomas Wedgwood, Colonel Josiah C. Halls, Walter Newbould, Alfred Ernest White, Charles F. (Derby, Western) Hayward, Evan Raffan, Peter Wilson Williams, Aneurin (Durham, Consett) Henderson, Rt. Hon. A. (Widnes) Rendall, Atheistan Wilson, W. Tyson (Westhoughton) Hirst, G. H. Richardson, R. (Houghton-le-Spring) Wood, Major M. M. (Aberdeen, C.) Irving, Dan Rose, Frank H. Young, Robert (Lancaster, Newton) John, William (Rhondda, West) Royce, William Stapleton Johnstone, Joseph Shaw, Thomas (Preston) TELLERS FOR THE AYES.— Kennedy, Thomas Spoor, B. G. Colonel Penry Williams and Mr. Hogge. Kenworthy, Lieut.-Commander J. M. Swan, J. E. NOES. Adair, Rear-Admiral Thomas B. S. Green, Albert (Derby) Neal, Arthur Allen, Lieut.-Col. Sir William James Greene, Lt.-Col. Sir W. (Hack'y, N.) Newman, Sir R. H. S. D. L. (Exeter) Armstrong, Henry Bruce Greenwood, William (Stockport) Nicholson, William G. (Petersfield) Atkey, A. R. Greer, Harry Nield, Sir Herbert Bagley, Captain E. Ashton Gregory, Holman Ormsby-Gore, Hon. William Baird, Sir John Lawrence Greig, Colonel Sir James William Palmer, Brigadier-General G. L. Baldwin, Rt. Hon. Stanley Gritten, W. G. Howard Parker, James Balfour, George (Hampstead) Hanna, George Boyle Pearce, Sir William Banbury, Rt. Hon. Sir Frederick G. Hannon, Patrick Joseph Henry Pease, Rt. Hon. Herbert Pike Barnston, Major Harry Harmsworth, C. B. (Bedford, Luton) Peel, Col. Hon. S. (Uxbridge, Mddx.) Bell, Lieut.-Col. W. C. H. (Devizes) Harris, Sir Henry Percy Pennefather, De Fonblanque Bigland, Alfred Henderson, Major V. L. (Tradeston) Perkins, Walter Frank Bird, Sir A. (Wolverhampton, West) Herbert, Col. Hon. A. (Yeovil) Pratt, John William Blades, Sir George Rowland Herbert, Dennis (Hertford, Watford) Prescott, Major W. H. Blair, Sir Reginald Higham, Charles Frederick Randles, Sir John Scurrah Borwick, Major G. O. Hilder, Lieut.-Colonel Frank Rees, Sir J. D. (Nottingham, East) Boscawen, Rt. Hon. Sir A. Griffith- Hills, Major John Waller Rees, Capt. J. Tudor- (Barnstaple) Bowyer, Captain G. W. E. Hoare, Lieut.-Colonel Sir S. J. G. Remnant, Sir James Breese, Major Charles E. Hohler, Gerald Fitzroy Richardson, Alexander (Gravesend) Brown, T. W. (Down, North) Holbrook, Sir Arthur Richard Roberts, Rt. Hon. G. H. (Norwich) Bruton, Sir James Hood, Joseph Roberts, Sir S. (Sheffield, Ecclesall) Buckley, Lieut.-Colonel A. Hope, J. D. (Berwick & Haddington) Rodger, A. K. Bull, Rt. Hon. Sir William James Hopkins, John W. W. Roundell, Colonel R. F. Burgoyne, Lt-Col. Alan Hughes Hopkinson, A. (Lancaster, Mossley) Samuel, A. M. (Surrey, Farnham) Burn, Col. C. R. (Devon, Torquay) Hunter, General Sir A. (Lancaster) Sanders, Colonel Sir Robert Arthur Campbell, J. D. G. Jackson, Lieut.-Colonel Hon. F. S. Sassoon, Sir Philip Albert Gustave D. Casey, T. w. Jameson, John Gordon Scott, A. M. (Glasgow, Bridgeton) Chamberlain, Rt. Hn. J. A. (Birm., W.) Jesson, C. Seager, Sir William Chamberlain, N. (Birm., Ladywood) Jones, Sir Edgar R. (Merthyr Tydvll) Shortt, Rt. Hon. E. (N'castle-on-T.) Churchman, Sir Arthur Jones, J. T. (Carmarthen, Llanelly) Sprot, Colonel Sir Alexander Clay, Lieut.-Colonel H. H. Spender Kellaway, Rt. Hon. Fredk. George Stanler, Captain Sir Beville Clough, Sir Robert Kerr-Smiley, Major Peter Kerr Stanley, Major Hon. G. (Preston) Coote, Colin Reith (Isle of Ely) Kidd, James Stanton, Charles Butt Craik, Rt. Hon. Sir Henry King, Captain Henry Douglas Stewart, Gershom Curzon, Captain Viscount Kinloch-Cooke, Sir Clement Sturrock, J. Leng Dalziel, Sir D. (Lambeth, Brixton) Lewis, Rt. Hon. J. H. (Univ., Wales) Sugden, W. H. Davidson, J. C. C. (Hemel Hempstead) Lloyd-Greame, Sir P. Sutherland, Sir William Davies, Thomas (Cirencester) Locker-Lampson, Com. O. (H'tingd'n) Taylor, J. Denniss, Edmund R. B. (Oldham) Lowther, Maj.-Gen. Sir C. (Penrith) Terrell, George (Wilts, Chippenham) Dewhurst, Lieut.-Commander Harry M'Connell, Thomas Edward Thomson, Sir W. Mitchell- (Maryhill) Dockrell, Sir Maurice M'Donald, Dr. Bouveile F. P. Thorpe, Captain John Henry Doyle, N. Grattan Mackinder, Sir H. J. (Camlachie) Tickler, Thomas George Du Pre, Colonel William Baring McLaren, Hon. H. D. (Leicester) Townley, Maximilian G. Elliot, Capt. Walter E. (Lanark) Macnamara, Rt. Hon. Dr. T. J. Tryon, Major George Clement Elvedon, Viscount Macpherson, Rt. Hon. James I. Warren, Sir Alfred H. Evans, Ernest Mallaby-Deeley, Harry Whitla, Sir William Eyres-Monsell, Com. Bolton M. Malone, Major P. B. (Tottenham, S.) Willey, Lieut.-Colonel F. V. Falle, Major Sir Bertram Godfray Manville, Edward Wills, Lt.-Col. Sir Gilbert Alan H. Fildes, Henry Martin, A. E. Wilson, Col. M. J. (Richmond) Flannery, Sir James Fortescue Meysey-Thompson, Lieut.-Col. E. C. Winterton, Earl Ford, Patrick Johnston Mitchell, Sir William Lane Wise, Frederick Forrest, Walter Moles, Thomas Woolcock, William James U. Foxcroft, Captain Charles Talbot Molson, Major John Elsdale Young, E. H. (Norwich) Fraser, Major Sir Keith Moore-Brabazon, Lieut.-Col. J. T. C. Frece, Sir Walter de Morison, Rt. Hon. Thomas Brash Gibbs, Colonel George Abraham Murchison, C. K. TELLERS FOR THE NOES.— Gilmour, Lieut.-Colonel Sir John Murray, Hon. Gideon (St. Rollox) Colonel Leslie Wilson and Mr. McCurdy. Goulding, Rt. Hon. Sir Edward A. Murray, William (Dumfries)
I beg to move, in Sub-section (1), to leave out paragraph ( b ).
The object of this Amendment is to raise the whole question of the efficiency of this machinery for dealing with depreciated exchanges. Nobody has contested the statement that difficulties may arise owing to the fact that a country with a depreciated exchange may be able to send goods to this country at a price below that at which the manufacturer in this country can successfully compete. Whether that is going to happen to any considerable extent, or whether it is happening to any considerable extent, we have no evidence at all, and whether its effects would be on the whole advantageous rather than disadvantageous, we do not know at all. What we do say, is that the stabilisation of the exchanges, which is what we should aim at, is rendered impossible by this proposal. This part of the Bill has been variously described. The right hon. Gentleman, the President of the Board of Trade, previously referred to it as an inside-out umbrella. The President of the Board of Education has called it a dose of strychnine, and now the President of the Board of Trade, whose wealth of metaphor is a source of constant delight, has referred to it as a kitten to be kept in the backyard. [HON. MEMBERS: "No, in the kitchen."] The whole question is, can the device succeed in doing what is desired? A Committee which went into this subpect did not recommend the proposals contained in the previous Bill, and indeed, it would seem absurd, on the face of it, to suppose that this form of duty could possibly restore the parity of the exchange. We know it is a complex proceeding to deal with the relationship of imports and exports to the state of the exchange, as between two countries, but surely if a country has a depreciated exchange, it is not to be supposed that checking imports from that country into your country, will enable that country to restore its exchange to par. Such an argument is absurd. It is desirable that Germany should export as much as possible, and until she has exported to the fullest extent, she will not be able to restore the position of her exchange in regard to other countries. The argument has riot yet been contested, that this particular remedy operates in inverse ratio to its need. If you have a country with a very low exchange you impose a very small duty. If you have a country where the exchange is not so low, but where it still falls below the point necessary to bring it under the operation of the Bill, then you impose a very high duty. Accordingly, the more the exchange depreciates—and it is to be supposed that by preventing imports coming from the country, you will make the exchange in that country go down—the less you apply the remedy. That is an argument to which no answer whatever has been given up to the present, so far as I have heard. The only answer of the right hon. Gentleman is that it is altogether too complicated to attempt to apply a remedy in proportion to the disease, but earlier on he did propose it. That, however, is not right, for he was not the author, the parent, of the Imports and Exports Regulation Bill, 1919, while he may be said to have a sort of quasi-paternal relation to this Bill. In the Bill of 1919, in Clause 9, there was a provision which permitted the duty to vary according to the position of the exchanges, and there was something logical in that. You put in a kitten of a size comparable to the danger which it had to face, or you gave a dose of strychnine comparable to the disease from which the patient was suffering; but in this Bill it is a flat rate. The hon. and learned Member for Chippenham (Mr. G. Terrell) showed quite clearly that it is a remedy applied in inverse ratio to the need, and to that no answer has been forthcoming from the Government.
The Minister of Health, whose absence I think it is common form to say we all deplore, has only got one line in defending this Bill. He says, "There is a trade, there is this great flood coming, there is the curve mounting; are you going to do nothing and stand by idly?" When we suggest that this is no cure, that is not sufficient, for he says, "Something must be done, and here is our proposal. If you have a better, let us know it; if not, support our proposal." There is one small case in which this suggestion has been tried, and that is in the United States of America. The mark has greatly depreciated as compared with the dollar, and on the 27th May this year they applied this remedy, and imposed a dumping tariff in the United States specially aimed at this sort of thing. We, therefore, have to that extent the advantage of their experience, and what has been the result? Whereas on the 26th May the mark was worth 1635 cents, on the 10th August it was worth only 123 cents, so that the effect, as regards America, has not been to restore the parity of exchange, and I think, therefore, as the desire is to get back 10 a level exchange with Germany, we may, at least, put the experience of America to show that this effect will not be secured. For this and other reasons I move my Amendment.
I beg to second the Amendment. Accident has thrown my name and the name of the hon. and gallant Member for Leith (Captain W. Benn) into conjunction on this Amendment. I am afraid we are rather unequally yoked together, because I do not think I agree with many, if any, of the arguments which have from time to time been used from the opposite side in regard to this Bill, and my only excuse for troubling the House at this moment on this question, which has been debated several times before, is that I have not yet intervened in the Debates on this Bill, because I did suppose that there must be some justification for this particular provision, of some kind, to be found somewhere. I have listened, so far as possible, to these Debates, and made my inquiries as best I could, but at the end of the proceedings on this Bill I am still left without having heard one single argument from any quarter of the House to show that there is anything to be said for dealing with collapsed exchanges in this way, or that any good purpose will be served. I have found few Members of this House who believe that this proposal is desirable; I have found none who think it workable. I am not going to go on the lines of argument sketched by the hon. and gallant Member for Leith, because I wish to take the Government at its word in regard to this question. We are not dealing with a proposal for remedying any of the exchange difficulties from which we are suffering; we are not at least dealing with a proposal to remedy the depreciation of the exchanges. We are dealing, so we are told by those responsible for this Bill, with something which may to a certain extent break the fall for the businesses and the working men of this country—the fall resulting from the revival and increase of competition from countries with a collapsed exchange.
Let us take it no higher than that. That is what we are discussing, and, moreover, we are discussing it, I think, not from the point of view either of Free Trade or of Protection. I confess that in this matter, at this period, at this crisis, I am entirely a fiscal opportunist myself, and listening to the debates I have come to the conclusion that all hon. Members are in the same position; I have heard arguments from the opposite side of the House which would have scandalised Adam Smith, and I have heard arguments from Protectionists on this side of the House, like the Parliamentary Secretary for the Overseas Trade Department, which would certainly have horrified Alexander Hamilton, and therefore I do not think we can discuss this question from the point of view of either Protectionist or Free Trade principles. But leaving that on one side, on either ground, what can be said for this proposal? On the whole—and this is really what I want to say—it seems to me that it sins far more against Protectionist theories than it does against Free Trade theories. We have heard every kind of justification for this Clause. The hon. and learned Member for Chippenham (Mr. G. Terrell) told us last night that as a matter of fact it would not increase prices, that all we would be doing would be taking a certain amount of the abnormal profits made by, for instance, the German exporter. If that be so, it has nothing whatever to do with the declared purpose of this Bill in its Preamble—
Then we have heard, last night and today, discussion based upon the theory—and I cannot understand how this Clause is going to be interpreted—that there is no difference between the internal and the external value of the franc or the lira. I believe that to be an absolute fallacy. During the last few months the internal and the external values of the franc and the lira have been approaching each other, but a year ago there was a great difference between the internal and the external values, yet we are told that this provision is to have no effect at all on those countries. Why, I cannot say. From the point of view either of Protection or of Free Trade, there are surely only two possible theories of what you ought to do in a situation such as this, when the whole chance of renewed prosperity for this country is a revival of our export trade. You can either take the Protectionist view and say, "We must make the home market perfectly safe for our manufacturers in order that they may be able to sell in foreign countries below their prices in this country"—practically dumping abroad—you may take that view, and it may be right or wrong; or you can say, if our manufacturers are going to compete in foreign markets at all, that you must get them to reduce their working costs in the same degree as their competitors, because if they do not do it at home they will not do it abroad. That may be a correct argument or not, but this proposal meets neither situation. You are not making your home market safe for your manufacturers. Nobody pretends that a 33⅓ per cent. duty, arbitrarily put on, with no relation at all to the extent of the depreciation of the exchange, is going to make our home markets safe, or that it is going to relieve manufacturers in this country of the necessity of drastically reducing all their working costs to enable them to compete even in the home market against foreign trade; and, therefore, from either point of view, this proposal absolutely fails of any sort of effect to meet the acknowledged evils and difficulties of the present situation.
I would make an appeal to those few hon. Members who may be in the House at the present moment and who are convinced Protectionists. From their point of view, far more than from the point of view of the convinced Free Traders, this proposal is absurd and fatal. What is going to happen? Let us take the situation as we know it to be. We are dealing with a depreciation of foreign exchanges which everyone admits they do riot understand in all its aspects and bearings. No one claims to be able to provide a complete explanation of the depreciation of any particular foreign currency. We all know that it is due to a variety of factors. Listening to hon. Members opposite, one would presume that the depreciation in the exchange, the relative value of the exchanges at the present moment, is entirely due to the balance of trade. That may be true over a long period of time, but it is not true of the short-term fluctuations of the exchanges from which we are at present suffering. We are dealing here with an evil which proceeds from various causes, from disturbances in the balance of trade, from export restrictions in different countries, from gambling in foreign currencies, from internal control of prices in various countries, from the taxation policy of various countries. We are dealing with an extremely complicated problem, and the only way in which we are proposing to deal with it is by a 33⅓ per cent. duty, watered down in various ways as it has been or is about to be watered down, and hon. Members know perfectly well that, in so far as it is going to be operative, it will be operative arbitrarily and probably unjustly, at any rate with no exact relation to the seriousness of the problem in regard to any particular country.
6.0 P.M.
In so far as it is operative, it is not going to act precisely and surely on those manufactures in this country which most need protection, but almost certainly on comparatively unimportant manufactures. It might be put on as a protection against the importation of gramophones, and not as a protection against steel. It has no relation to the seriousness of our industrial problem and the amount of unemployment, and, in so far as it is operative, it is going to represent and embody all the possible and conceivable evils of any Protectionist system. It is going to represent the Protectionist system to the people and public opinion of this country in the worst possible light, and, in so far as it remains, as I believe it is going to remain, on the Statute Book as something so inoffensive (I think a kitten is a very good analogy to use) that it is not even worth repealing, it will be held up as a laughing stock by every rabid Free Trader in the country. The thing is unscientific and absurd, and while, as I say, it has been watered down so much that it is probably going to be entirely inoperative, yet I feel so strongly about this particular provision in the Bill, which has been imported into it entirely without reference to the original policy and pledges of the Coalition Government, and has nothing whatever to do with that policy and those pledges—in many respects it cuts across them—but has been imported into this Bill on the back, as it were, of those pledges—I feel so strongly about its entirely unscientific nature and absurdity, that if it remains iii the Bill, I can see no possible course for a person who thinks as I do, but to vote against the Bill on Third Beading.
The Noble Lord opposite has made, at any rate, one dogmatic statement about the collapse of the exchanges, why they have collapsed, why they remain collapsed, and why they fluctuate. I have always been of opinion—I may be wrong but I have yet to learn I am wrong—that the exchange represents the value of the credit of a country. It does not matter much what speculation there may be; the price of the exchange may be up or down, the basis and reason for appreciated or depreciated exchange is the estimate in the minds of the world of the ability of the country to which the exchange refers to honour its paper in the terms and at the value promised by the instrument. It seems to me that the Noble Lord based his arguments in opposition to this Clause on theories of exchange such as he laid down but unsupported, if I may say so without offence, with any really sound argument. He made another statement which I should like to controvert. He said that this Clause deals with depreciation in no relation to the problem of unemployment. Let me give a specific instance of how it does, and how the depreciation of currency has, to my certain knowledge, recently thrown a number of people out of work.
I never said anything of the sort.
Of course I accept the Noble Lord's assurance, but the words as he was speaking I took down, and they were, "It has no relation to the problem of unemployment."
I think I said that this provision in the Bill has no relation to the degree of unemployment in an industry. I did not say the depreciation of the exchanges had none.
I accept the explanations of the Noble Lord's views. They will equally serve my point, as I will show. This Clause has indeed a very considerable bearing on the question of unemployment in every degree. Take the ancient city of Norwich and the sister town of Yarmouth. We have seen since the War pouring in from places like Italy—I will not trust myself with the figures, but I believe millions of yards of manufactured silk goods, similar goods to which have been manufactured in the last five or six years in Yarmouth and Norwich. The figures were given to me by factory managers, and I have quoted them previously in the House. The mere fact that the Italian exchange has gone down from 25 to anything from 80 to 100 lire to the £ has thrown large bodies of men and women out of work in the silk trade in Norfolk and Macclesfield. That is a complete answer to the statement that the present depreciated exchange has nothing to do in any degree with the problem of unemployment. The provision in the Bill is disposed to meet cases like the silk case. People confine themselves too much in this Debate, if I may say so, to Germany. They forget countries like Italy and Austria which export here quantities of manufactured goods all of which do deprive us of an opportunity of employing our people. For that reason alone, I totally disagree with the Noble Lord's view and his reasons for opposing this Clause. But he went further, and took another line—that this Bill can do very little good. The expression he used, I think, was that it was a kitten, and that it would be ineffective and so on.
I take this view as a member of a body of citizens which gets its living by everyday exertions in trade. We have been through the worry of selling goods in face of unfair competition from abroad, and have felt the trouble in the actual operations of trade, and as one of the executive council of the Association of British Chambers of Commerce, I am very glad to say that that body welcomes this Bill. They say it is not all they want, but that they will do all they can to make it work. It is patent that the majority of the House, who call themselves supporters of the Bill, think it is by no means a perfect Bill—it is a very imperfect Bill—but we are embarking on an experiment like a youngster with an untried horse. We have to be easy with the bridle and feel the mouth of the horse going at a gentle pace, to find out how the horse's paces suit. I much prefer, as every reasonable man must prefer, a thing under experiment to work slightly under expectation, than that it should work over expectation and do damage. I prefer this Bill to be less effective than do extremists like the hon. Member for Chippenham (Mr. G. Terrell). I prefer to have a Bill of this kind, which can do no harm whatever, and may do a great deal of good. I prefer it to be a, kitten—a Bill to give us an opportunity of seeing how the principles of safeguarding industries work. If we had a Bill which was very drastic, it might do an enormous deal of harm, and spoil our chance of bringing those principles into operation in the future. I am content that it is watered down so that it may do no harm, even though it may excite the ridicule of Free Traders or political opponents of the Government. To omit the Clause under discussion would, again, do no good, and would, in my view, do harm, and for that reason I shall vote for its retention, and I think that will be the view of most people who are actively engaged in manufacture by employing British labour.
I think those who have had the pleasure of listening to the hon. Member who has just sat down will have noticed that, while he began with trenchant comment and firm statement, he ended on a very minor note, and one is not altogether sorry to find that those who are supporting this particular provision in the Bill are supporting it on the ground, as I understood the hon. Member, that it will do no harm, that it might do some little good, and that it would not frighten people so much as if it were as full-blooded and as thorough as he would otherwise like it to be. This particular provision is on a somewhat different footing, and stands in a somewhat different environment, to a number of other provisions in this Bill. When we were dealing with questions of key industries, when we were dealing with questions of dumping of goods made below their cost price, we were dealing with matters which, at any rate, were adumbrated at the time of the last election, and were matters as to which no one could complain of their being brought forward and discussed, and legislation framed in connection with them in this Parliament. But in this particular Subsection we are dealing with an entirely different matter. One is quite aware that the extraordinary and unparalleled fluctuations in foreign exchanges had not disclosed themselves at the beginning of this Parliament. No legitimate complaint can be made against any Government if they take cognisance of such a remarkable phenomenon of international trade, and apply a remedy such as they have, but we are dealing here and now with something which, as I said, has no relation to any pledges, to any premonitions, to any manifestoes with which the country was made familiar before this Parliament began to sit, and therefore we are free to the fullest extent, wherever we sit, and whatever our predispositions on this matter, to look at this as a remedy proposed to meet difficulties which are alleged to arise from a very remarkable and, perhaps, unparalleled state of affairs.
That being so, each of us looks at it according to his ability to see, first of all, whether this is a useful remedy for an admitted cause of anxiety. You cannot have unparalleled depreciation of values and international exchanges without affecting commerce and industry, for the time being greatly. We all agree, to that, but that, of course, does not carry us very far. The question is whether this remedy is one which it is worth while putting into force, and whether its indirect results, or its indirect effect upon public opinion and public fears, will or will not outweigh any benefit which directly, or in particular cases, it may attempt to effect. I am glad that you, Mr. Speaker, have selected this Amendment as a matter upon which we can vote, because it detaches this particular issue with greater clearness than in any previous Debate from the various other issues contained in the Bill. Having said that, may I follow the hon. Member who spoke last in attuning myself, as far as I can, to the same minor key in which he spoke? I agree with him that it is very easy to exaggerate this matter in more than one direction. I say frankly that I think the evils which this will bring about are far less in the Bill as it stands to-day than they were in the Bill as it was introduced, and I agree with him, and with others, that it is not really fair to represent this part of the Bill as if it were a general tariff, or as if it were something which would immediately, and of necessity, begin to function in matters which would have very great and far-reaching results.
It is agreed that this is a proposal surrounded by many real safeguards in the Bill—a proposal not likely to have any great result, either in the way the hon. Member desires, or others. Still, that does not get rid of the issue which is now raised by this Amendment, as to whether, however cautiously this, provision may be made to work, however it may be modified—rightly modified—by various precautions, it is or is not worth being in the Bill. Having listened on many occasions to discussions relevant to this issue—although concerned with other matters as well—having considered as well as I can how this is likely to act, I have come to the conclusion that this Bill would be a much better Bill if this particular provision be left out.
The whole question of exchanges, fluctuating violently and irregularly, exchanges not uniform as between one country and another; fluctuations arising out of War conditions, which conditions persist to a greater degree in some places than in other places—in all that welter of uncertainty and variable conditions, a proposal of this kind, with its difficulties as to amount, with its possibility of general application, appears to me a provision which will not do any real good to British trade or to anyone. Bearing in mind that it is easy to exaggerate it one way or another, although I quite agree it is very easy to exaggerate the amount of good which its devotees think it will do, or the amount of harm thought likely by its enemies—on the whole I am convinced it will do more harm than good. I think it is a great pity to import anything like a new method into our trade relations in reference to passing phenomena. I for one shall vote for the Amendment now before the House to omit this proviso, and I wish it were possible to think that even at this stage the Government would limit the Bill to those key industries, dumping and so on, that were before the country. I am confident it would be better for everyone concerned if that could be done. I, at any rate, cannot be a party to voting in favour of this specific proposal of the Government, as one who is quite determined to carry out to the full, and if possible more than the full, any pledges or implications I have ever given on this issue.
There is one phase of the argument of my hon. Friend who has just sat down that I wish to take up. He spoke of these lapsed exchanges as a passing phase. As a member, of a great exchange in the City, I want to tell him and the House that the belief in the City is that the German Government intend that the difference between the mark and the pound sterling shall settle at 300. That means 15 paper marks to one gold mark. The intention of the German Government is to redeem all the paper marks outside Germany, whenever the holder of that paper wishes to obtain gold marks, by giving him one gold mark for 15 paper marks. That, I believe, is a permanent matter. It is going to remain for the lifetime of my hon. Friend and myself. The question of these exchanges is not a temporary matter. I believe that so long as I live there will be this extraordinary difference between the mark and the pound sterling compared with the days I traded with Germany before the War. I say that some such method as the Government now proposes is absolutely necessary if we are going to safeguard in any measure our British industries. I quite agree with what has been said by the hon. Member for Hastings (Lord E. Percy) in his very clear and lucid speech on the last Amendment, that 33⅓ per cent., as proposed in this Bill, will not safeguard the British manufacturer against the articles produced in Germany from her own soil and by her own labour. But it will protect and be a safeguard to British industries where Germany has to import the whole of the article, we will say, made of rubber, of which she grows nothing in her own territory, and has no colonies in which it is produced. Where she has to import in order to manufacture the article the whole of the raw material from another country, then this 33⅓ per cent., placed against that manufactured article, will be some compensation for the difference in the labour spent on the manufacture and between the amount of money paid in sterling or its equivalent to the German workmen in the German factories compared with the amount paid to the English workmen in the English factories. Therefore to that extent this provision is good. It will safeguard our industries to a very reasonable extent in all articles, as I said, where the German manufacturer must import the raw material. But I agree that it is absolutely and totally insufficient to safeguard or protect our manufacturers to a very great extent in such articles as steel, where the German gets his coal and ironstone and everything necessary to make that steel from his own soil—
No, the German consumption of ironstone which is produced in Germany is very small indeed.
I do not know that I quite agree with that interruption. I was speaking of the material in the neighbourhood of the place.
The depreciated exchanges?
If the German buys the ironstone in some countries, he may find that the exchange is almost favourable, or that there is a big difference.
What about the rate between France and Germany?
I cannot state in exact figures the difference in exchange between Lorraine and Germany, but there is no doubt that the iron that Germany is exporting to-day is not made from imported ore. She may be importing some of it for her home trade. Where she is cutting against us so effectively is in the products of her own soil. Therefore, I agree, while this is a very partial safeguard to British industries it is in consonance with the whole spirit of the Bill. I will say, as one exceedingly keen to see British industries safeguarded, that when this Bill becomes an Act and we, as business men, have tried to work it, we shall find many weaknesses in it. But it may be a pointer as to the direction in which we may go, and it will still strengthen and help our whole idea of increased employment in this country, and the support of our industries.
The Amendment which is before the House now is one of great importance to many industries, and it places those of us who represent certain constituencies, highly interested in the trade of the country, in a position of some difficulty. The first part of the Bill many of us are pledged to; but one may have one's own view as to the propriety of the Government requiring support on a proviso of this sort, which the Amendment seeks to leave out. When it comes to an attempt to introduce by artificial measures a delay in the rectification of a certain situation arising as a result of the War, then we become very much more diffident as to the support one can give to certain proposals. It is for that reason that I feel that at this moment, and until the exchanges approach nearer normality, it is very inopportune to introduce legislation.
The difficulty of the country at the present time is the delay in the resumption of the export trade. In many businesses the home trade is fairly good. I refer to those businesses the larger portion of which depends upon export. It is the export portion of our trade that is non-existent to-day. I feel that to attempt to delay the free flow of natural causes to a return to the normal is something which may well imperil these various industries which are dependent upon the export of semi-manufactured products. There is also a danger which I must say I regard as a great danger. The hon. Member beside me (Mr. A. M. Samuel) said he was prepared to accept a Bill of this kind because it would not do a great deal either of good or harm, and would show us where we were going; but I do not agree.
Before the War I spent a good deal of my time in the United States, and I have had a good deal of experience of tariffs. Once you start them, they may become extremely dangerous. To attempt to fasten on industry the incubus of bureaucracy, of which recently we have seen far too much, is something which, in my judgment, should be deferred until we have been able to see more clearly what is going to be the position of industry in this country when we have approached nearer to normality. Whilst I do not wish to give the impression that some protection for British industries is not desirable, I think the present time is most inopportune. It is alleged that British industries must be protected, but at the present time we are in a sea of uncertainties in regard to our economic theories, and we are so puzzled that it appears to me on economic grounds that the best way to proceed is to let matters take their course until we have approached nearer to normality. If it is true that some our industries are going to be severely handicapped by foreign competition, I think capital and labour must bear the burden during that period. To attempt to meet that danger in the way which is proposed until we can see our way more clearly would, in my opinion, be placing a more dangerous burden upon the country. For these reasons I shall support the Amendment.
I admit that the subject-matter of this Sub-section was not, in the first place, part of the programme of the Coalition Government at the last election, because the sudden depreciation of exchanges and the existence of dual values in some of the countries with depreciated exchanges, and the sudden fall, was not in existence at that time, and it has come upon us since. Were we faced with exchanges like those with which we were faced at the end of the War, I certainly should hesitate before I recommended the imposition of any duty. I was rather surprised to hear my hon. Friend advocate that it might be sound policy to propose duties against countries with depreciated exchanges after matters had become stabilised, and he argued that it was unwise to do it in the transitional stage. Any such Measure as this is in the nature of an experiment, but the whole justification for it is during the transitional stage, on account of the inequalities which occur during that stage. In my view, the difficulties of the transitional stage justify the experiment, and I doubt whether it would be wise to adopt a. protective tariff against a country whose exchange has depreciated when it has reached stability.
This policy does not come upon the House with any surprise, because the Prime Minister announced quite categorically two years ago in his final speech in this House towards the close of August, 1919, at a time when the rate of German exchange was only 80, that it would be necessary to take some action along these lines against the effects of collapsed exchanges. The statement was repeated at many other stages and on many other occasions. Therefore I say that nobody is entitled to show any surprise, and assert that an assault is being made upon their principles by the introduction of this provision. On the merits, I should have thought that those who were prepared to accept legislation against dumping in the ordinary sense would not find it difficult to accept it against dumping by reason of collapsed exchanges, because the two kinds of dumping are almost indistinguishable. If you accept the principle that you should legislate against dumping, which is the selling of goods below the cost of production in the country of origin, you do so, not because that selling in itself is an immoral thing, but because that is creating as against your industries a competition of an unusual and unfair kind which an ordinary industry carrying on its work efficiently could not meet under ordinary conditions.
If the competition is unfair it is immoral.
I am not so much concerned as to whether it is immoral or not, but I am more concerned with economics.
In the case of ordinary dumping it is persistent, and has a distinct object, but in the case of collapsed exchanges it is temporary, and the very countries whose exchanges are depreciated would be anxious for it to come to an end.
I do not accept that proposition. I would not accept a provision with regard to ordinary dumping which is going to depend upon proving some sinister intention. What I am concerned with is that the act takes place, and that the result is reflected in this country by its effect on unemployment. When that occurs, I am not concerned to inquire what was the motive. I am not so certain that some of the countries we are dealing with wish to get their exchanges back to their normal state. I know we do not all hold the same economic view. There are those who think the inflation is wise, and some think it is unwise. There are people who think it is wise to depreciate your exchange if you can get some advantage, and, judging intention and will by action, I think one is certainly entitled to say that at the present time the Government of Germany is very content that its exchange should be very much depreciated. If those are the conditions—and I think no student of economics will dispute it—when you get this depreciation of ex change you get an adventitious advantage in the form of a bounty upon exports with which the home country cannot compete, because the same circumstances are not in operation in their country. Ones you admit that it is an advantage to the export trade, then it is exactly on all fours in its operation, and its results are the same as the very kind of dumping against which hon. Members are prepared to legislate. We do not mean to put on a protective tariff. I appreciate what the hon. Member for Chippenham (Mr. G. Terrell) said, to the effect that this Bill does not go far enough, because he wants us to put on a big, thumping tariff.
I suggested nothing of the kind, and the hon. and gallant Gentleman entirely misunderstands me. This is not Tariff Reform, but simply an attempt to rectify collapsed exchanges, and you want to put duties on to counteract the exchange and encourage the country with its depreciated exchange to get it back to parity.
What the hon. Member means is the bounty which exists by reason of the depreciation. I do not think there is any dispute as to the existence of this, and I do not think there is any misunderstanding as to what the Bill is designed to meet. It is not designed, as apparently my hon. Friend the Member for Leith (Captain W. Benn) said, to bring about parity of exchange. I do not expect either in the life of the hon. and gallant Member or my own to see parity of exchange established in all cases, but I do hope to see a stabilisation of exchanges, and there is nothing in this Bill which makes against that stabilisation. On the contrary, we are not saying merely because an exchange is depreciated that we are going to put a duty against that country. What we are saying to those people is, "If you depreciate your exchange by your own direct act, or allow it to take place to that extent you shall not benefit by depreciation or make that experiment at our expense." That is what we are trying to meet. So far from encouraging people to depreciate their exchange still further, we are saying to them, "If you do we shall take away any advantage you get from us." I think that would be an encouragement to a country to get its exchange stabilised, and not to maintain the dual value.
Then my hon. and gallant Friend referred to the Cunliffe Report. We are definitely trying to pursue a policy of reasonable deflation, and are doing nothing which is inconsistent with the Cunliffe Report. We say we wish to protect ourselves against those people who are getting adventitious advantages because they are not carrying out the principles of the Cunliffe Report. When it is suggested that in imposing a flat rate duty you are imposing a duty in inverse ratio to the need which meets you, you have a complete academic argument against the flat rate duty. I agree to that at once. If you wish to be scientifically correct, if you seek to face the situation in a way which will enable you to meet any and every variation of the exchange, you must with every variation of the internal and external value vary your duty, and not only vary your duty as against each country with each change in the internal value, but vary the duty almost constantly in respect of every class of article. The hon. Member for Birkenhead pointed to the varying advantages which are given to goods from Germany; but if the hon. Member for Harrow is seeking to work out an absolutely perfect scheme he will find it will have innumerable combinations in it. Then it might be scientifically correct and he may have arrived in theory at a perfect economic instrument, but, having arrived at that perfect instrument in theory, he will find that in practice it is absolutely unworkable. At the same time, he would have entrusted my right hon. Friend with bureaucratic powers which he would be quite incapable of exercising, and which the House and the country, which are not unduly favourable to bureaucratic control, would certainly and rightly repudiate as the most extreme case of bureaucracy that had ever been put before it.
The proposal was precisely the proposal introduced into the House by the Government and vouched for by five Members of the Cabinet.
It was not quite as bad as that. I was certainly a strong opponent of that proposition. The hon. and gallant Member is always ready to inform and instruct the House, and I can assure him that we have learnt wisdom from the criticisms which were offered to that Bill. After all, fiscal matters are matters of experience and not matters of faith only. The final point that was put was that if you will only leave this alone everything will come right. That argument was put a year and a half ago. We were told that the German exchange was gradually righting itself. We have seen the German exchange go to 150 and then come right back again. I think we shall have to wait a very long time indeed before we arrive at that stabilisation of exchange which we all want to see. I venture to assert that the case for action is completely made out. The alternative before the House is to do this or to do nothing. I believe that we have got before us now the spectacle of a Germany with great industrial prospects making an enormous industrial recovery. I agree that the full effect of that recovery is not felt in our industry to-day, but I believe it will eventually be felt, and if we do not take some measures in time, before we feel the full effect of German competition, we shall find it necessary to take action in a hurry, and action taken in a hurry is not always of the moderate character which is now proposed. We might be faced with a demand for very high protective tariffs and might adopt economic measures which later on we shall all very much regret.
The hon. Gentleman who has spoken for the Government has just demonstrated with admirable lucidity the utter futility of the Government proposals. He stated that a duty varying in accordance with the fluctuations in exchange would be a practical impossibility. I quite agree that while such a plan in theory may be correct in practice it is impossible, but the only difference between that and the Government plan is that the Government plan, both in theory and in practice, is an utter impossibility. The hon. Gentleman said that depreciated exchanges really constitute a bounty as between the external and internal value of the currency, but whatever the bounty may be, and it varies, he proposes to apply to it a flat rate duty of 33⅓ per cent. We know that in most cases that 33⅓ per cent. will afford no protection. It simply will not touch the situation. But assume for the moment that it does afford protection, and that it exactly balances the adventitious bounty due to the depreciated exchange. What happens? If the bounty appreciates with the fluctuations from day to day, then your tariff at once becomes futile and fails to carry out its purpose. If it depreciates you are setting up the protective tariff demanded by the hon. Member for Chippenham (Mr. Terrell) Further, the absurdity of this Measure is more clearly demonstrated when we consider that the protection is varied in inverse ratio to the necessity for protection. If the bounty is greater goods can be exported very cheaply to this country. If the bounty is less, a more expensive duty is imposed on the value of the goods when they reach this country. If the goods are expensive you impose a heavier duty on them, but when the bounty is greater goods are cheap. That point is clearly illustrated by the figures furnished to the House last night, which were originally submitted by the hon. Member for Chippenham, who pointed out that pianos introduced into this country from Germany would pay £11 10s. when the mark stood at 240, but when it receded to 280 the bounty became greater through the collapse of the exchange and the duty was lower in its incidence, falling to £9 13s. 4d. That shows the operation of the 33⅓ per cent. duty under these circumstances. That shows, too, the futility to the Bill, for if your 33⅓ per cent. duty is correct, the slightest fluctuation or variation in the exchange one way or the other causes it to cease to be correct.
Further, it is in inverse ratio, because the cheaper the goods that flow into this country the greater is the necessity for protection. The hon. Gentleman has told us that a sliding scale duty is impossible. I venture to say that a flat rate duty is an absurdity. Clearly you cannot cope with fluctuating conditions by means of a tariff, and the conditions which confront us to-day would defeat any tariff. The Government have had two or three attempts to devise measures to meet these circumstances. Others have been withdrawn, but they are now persisting with this Measure in face of the ridicule of practically every quarter and every section of this House, including the hon. Member for Chippenham, who was originally the chief protagonist for the Bill. The hon. Member in fact now tells us that the Bill will afford protection to no one. The difficulty is that British industries are by it led to believe that they are being protected against an inrush of cheap goods when no protection is in fact afforded them at all. If the bounty amounts to 200 or 300 per cent. you impose a duty of 33⅓ per cent. because you can do nothing else. There are people credulous enough to believe that the Government seriously mean that they are giving protection by this Bill. They are thereby led into false security and are in consequence exposed to greater menaces than before. That is the effect of this Bill. The hon. Gentleman admits it is a rotten Bill and that the wisdom of
our great Departments cannot provide anything better; but in view of the circumstances of the day and the incidence of economic facts the Government say they must offer a little eye-wash to the Tariff Reform gang. That eye-wash, however, will not prove sufficient to satisfy the hon. Member for Chippenham.
It being Seven of the clock, Mr. SPEAKER proceeded, pursuant to the Order of the House of 13 th June, to put forthwith the Question on the Amendment already proposed from the Chair.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 204; Noes, 80.
Division No. 343.] AYES. [7.1 p.m. Adair, Rear-Admiral Thomas B. S. Flannery, Sir James Fortescue Locker-Lampson, G. (Wood Green) Allen, Lieut.-Col. Sir William James Ford, Patrick Johnston Locker-Lampson, Com. O. (H'tingd'n) Amery, Leopold C. M. S. Foreman, Sir Henry Lowe, Sir Francis William Armstrong, Henry Bruce Forrest, Walter Lowther, Maj.-Gen. Sir C. (Penrith) Atkey, A. R. Foxcroft, Captain Charles Talbot M'Connell, Thomas Edward Bagley, Captain E. Ashton Fraser, Major Sir Keith M'Donald, Dr. Bouverie F. P. Baird, Sir John Lawrence Fremantle, Lieut.-Colonel Francis E. Mackinder, Sir H. J. (Camlachle) Baldwin, Rt. Hon. Stanley Gibbs, Colonel George Abraham McLaren, Hon. H. D. (Leicester) Balfour, George (Hampstead) Gilbert, James Daniel Macnamara, Rt. Hon. Dr. T. J. Balfour, Sir R. (Glasgow, Partick) Gilmour, Lieut.-Colonel Sir John Macpherson, Rt. Hon. James Banbury, Rt. Hon. Sir Frederick G. Goff, Sir R. Park Malone, Major P. B. (Tottenham, S.) Barlow, Sir Montague Gould, James C. Manville, Edward Barnston, Major Harry Goulding, Rt. Hon. Sir Edward A. Martin, A. E. Bell, Lieut.-Col. W. C. H. (Devizes) Gray, Major Ernest (Accrington) Mason, Robert Bellairs, Commander Carlyon W. Green, Albert (Derby) Matthews, David Benn, Sir A. S. (Plymouth, Drake) Greene, Lt.-Col. Sir W. (Hack'y, N.) Mitchell, Sir William Lane Betterton, Henry B. Greenwood, William (Stockport) Moles, Thomas Bigland, Alfred Greer, Harry Molson, Major John Elsdale Bird, Sir A. (Wolverhampton, West) Gregory, Holman Moore, Major-General Sir Newton J. Blades, Sir George Rowland Greig, Colonel Sir James William Moore-Brabazon, Lieut.-Col. J. T. C. Blair, Sir Reginald Gritten, W. G. Howard Morden, Col. W. Grant Berwick, Major G. O. Guest, Capt. Rt. Hon. Frederick E. Morison, Rt. Hon. Thomas Brash Boscawen, Rt. Hon. Sir A. Griffith- Guinness, Lieut.-Col. Hon. W. E. Munro, Rt. Hon. Robert Bowyer, Captain G. W. E. Hacking, Captain Douglas H. Murchison, C. K. Breese, Major Charles E. Hamilton, Major C. G. C. Murray, Hon. Gideon (St. Rollox) Brown, T. W. (Down, North) Hannon, Patrick Joseph Henry Murray, William (Dumfries) Bruton, Sir James Harmsworth, C. B. (Bedford, Luton) Neal, Arthur Buckley, Lieut.-Colonel A. Harris, Sir Henry Percy Newman, Colonel J. R. P. (Finchley) Bull, Rt. Hon. Sir William James Henderson, Major V. L. (Tradeston) Newman, Sir R. H. S. D. L. (Exeter) Burgoyne, Lt.-Col. Alan Hughes Herbert, Dennis (Hertford, Watford) Nicholl, Commander Sir Edward Burn, Col. C. R. (Devon, Torquay) Higham, Charles Frederick Nicholson, William G. (Petersfield) Campbell, J. D. G. Hilder, Lieut.-Colonel Frank Norris, Colonel Sir Henry G. Casey, T. W. Hoare, Lieut.-Colonel Sir S. J. G. Palmer, Brigadier-General G. L. Chamberlain, Rt. Hn. J. A. (Birm., W.) Hohler, Gerald Fitzroy Parker, James Chamberlain, N. (Birm., Ladywood) Holbrook, Sir Arthur Richard Pearce, Sir William Churchman, Sir Arthur Hood, Joseph Pease, Rt. Hon. Herbert Pike Clay, Lieut.-Colonel H. H. Spender Hope, J. D. (Berwick & Haddington) Peel, Col. Hon. S. (Uxbridge, Mddx.) Clough, Sir Robert Hopkins, John W. W. Pennefather, De Fonblanque Cockerill, Brigadier-General G. K. Hunter, General Sir A. (Lancaster) Perkins, Walter Frank Cory, Sir J. H. (Cardiff, South) Jackson, Lieut.-Colonel Hon. F. S. Pratt, John William Craik, Rt. Hon. Sir Henry Jameson, John Gordon Prescott, Major W. H. Curzon, Captain Viscount. Jesson, C. Purchase, H. G. Dalziel, Sir D. (Lambeth, Brixton) Jodrell, Neville Paul Randies, Sir John Scurrah Davidson, J.C.C. (Hemel Hempstead) Johnson, Sir Stanley Rees, Sir J. D. (Nottingham, East) Davidson, Major-General Sir J. H. Jones, Sir Edgar R. (Merthyr Tydvil) Rees, Capt. J. Tudor- (Barnstaple) Davies, Thomas (Cireneester) Jones, J. T. (Carmarthen, Llanelly) Reid, D. D. Davison, Sir W. H. (Kensington, S.) Kellaway, Rt. Hon. Fredk. George Remnant, Sir James Denniss, Edmund R. B. (Oldham) Kelley, Major Fred (Rotherham) Richardson, Alexander (Gravesend) Dewhurst, Lieut.-Commander Harry Kerr-Smiley, Major Peter Kerr Roberts, Rt. Hon. G. H. (Norwich) Dockrell, Sir Maurice Kidd, James Roberts, Samuel (Hereford, Hereford) Doyle, N. Grattan King, Captain Henry Douglas Roberts, Sir S. (Sheffield, Ecclesall) Du Pre, Colonel William Baring Kinloch-Cooke, Sir Clement Roundell, Colonel R. F. Elvedon, Viscount Law, Alfred J. (Rochdale) Royds, Lieut.-Colonel Edmund Eyres-Monsell, Com. Bolton M. Lewis, Rt. Hon. J. H. (Univ., Wales) Rutherford, Sir W. W. (Edge Hill) Falle, Major Sir Bertram Godfray Lindsay, William Arthur Samuel, A. M. (Surrey, Farnham) Fisher, Rt. Hon. Herbert A. L. Lloyd-Greame, Sir P. Samuel, Samuel (W'dsworth, Putney)
Sanders, Colonel Sir Robert Arthur Sutherland, Sir William Wild, Sir Ernest Edward Scott, Leslie (Liverpool, Exchange) Taylor, J. Willoughby, Lieut.-Col. Hon. Claud Seager, Sir William Terrell, George (Wilts, Chippenham) Wills, Lt.-Col. Sir Gilbert Alan H. Seddon, J. A. Terrell, Captain R. (Oxford, Henley) Wilson, Col. M. J. (Richmond) Shortt, Rt. Hon. E. (N'castle-on-T.) Thomson, Sir W. Mitchell- (Maryhill) Wlnterton, Earl Simm, M. T. Thorpe, Captain John Henry Wise, Frederick Sprot, Colonel Sir Alexander Tickler, Thomas George Wood, Sir H. K. (Woolwich, West) Stanler, Captain Sir Beville Townley, Maximillan G. Woolcock, William James U. Stanley, Major Hon. G. (Preston) Tryon, Major George Clement Yeo, Sir Alfred William Stanton, Charles Butt Walters, Rt. Hon. Sir John Tudor Young, E. H. (Norwich) Stewart, Gershom Ward, William Dudley (Southampton) Sturrock, J. Leng Warren, Sir Alfred H. TELLERS FOR THE AYES.— Sugden, W. H. Whitia, Sir William Colonel Leslie Wilson and Mr. McCurdy. NOES. Acland, Rt. Hon. Francis D. Griffiths, T. (Monmouth, Pontypool) Rose, Frank H. Adkins, Sir William Ryland Dent Grundy, T. W. Royce, William Stapleton Ainsworth, Captain Charles Guest, J. (York, W. R., Hemsworth) Scott, A. M. (Glasgow, Bridgeton) Armitage, Robert Halls, Walter Shaw, Hon. Alex. (Kilmarnock) Asquith, Rt. Hon. Herbert Henry Henderson, Rt. Hon. A. (Widnes) Shaw, Thomas (Preston) Barker, G. (Monmouth, Abertillery) Hirst, G. H. Spoor, B. G. Barnes, Major H. (Newcastle, E.) Holmes, J. Stanley Swan, J. E. Barton, Sir William (Oldham) Hopkinson, A. (Lancaster, Mossley) Sykes, Sir Charles (Huddersfield) Bell, James (Lancaster, Ormskirk) Irving, Dan Thomas, Rt. Hon. James H. (Derby) Benn, Captain Wedgwood (Leith) John, William (Rhondda, West) Thomas, Brig.-Gen. Sir O. (Anglesey) Bowerman, Rt. Hon. Charles W. Johnstone, Joseph Thomas, Sir Robert J. (Wrexham) Carter, W. (Nottingham, Mansfield) Kennedy, Thomas Thomson, T. (Middlesbrough, West) Cecil, Rt. Hon. Lord R. (Hitchin) Kenworthy, Lieut.-Commander J. M. Wallace, J. Clynes, Rt. Hon. John R. Kiley, James Daniel Ward, Col. J. (Stoke-upon-Trent) Collins, Sir Godfrey (Greenock) Lyle-Samuel, Alexander Waterson, A. E. Coote, Colin Reith (Isle of Ely) Maclean, Rt. Hon. Sir D. (Midlothian) Wedgwood, Colonel Josiah C. Cowan, D. M. (Scottish Universities) Morgan, Major D. Watts White, Charles F. (Derby, Western) Davies, Alfred Thomas (Lincoln) Mosley, Oswald Wignall, James Edwards, C. (Monmouth, Bedwellty) Murray, Hon. A. C. (Aberdeen) Willey, Lieut.-Colonel F. V. Edwards, G. (Norfolk, South) Myers, Thomas Williams, Aneurin (Durham, Consett) Elliot, Capt. Walter E. (Lanark) Newbould, Alfred Ernest Williams, Col. p. (Middlesbrough, E.) Evans, Ernest O'Grady, James Wilson, W. Tyson (Westhoughton) Finney, Samuel Ormsby-Gore, Hon. William Wood, Major M. M. (Aberdeen, C.) Galbraith, Samuel Parry, Lieut.-Colonel Thomas Henry Young, Robert (Lancaster, Newton) Gillis, William Raffan, Peter Wilson Glanville, Harold James Ratcliffe, Henry Butler TELLERS FOR THE NOES.— Graham, R. (Nelson and Colne) Richardson, R. (Houghton-le-Spring) Mr. Hogge and Lord Eustace Percy. Graham, W. (Edinburgh, Central) Rodger, A. K.
Mr. SPEAKER then proceeded, successively, to put forthwith the Questions on any Amendments moved by the Government of which notice had been given to that Part of the Bill to be concluded at Seven of the clock at this day's sitting.
Amendments made: After Sub-section
(1) insert a, new Sub-section—
(2) The Board, on referring any such matter to a committee, may direct that the committee shall report also on the effect which the imposition of a duty under this Part of this Act on goods of any particular class or description would exert on employment in any other industry being an industry using goods of that class or description as material.
In the Sub-section last inserted, leave out the word "may," and insert instead thereof the word "shall."
In Sub-section (2), leave out the word "aforesaid," and insert instead thereof the words "specified in Sub-section (1)."
After the word "may," insert the words
"after taking into consideration the Report, if any, made under Sub-section (2)."
After the word "that" ["Provided that no such order shall be made"], insert the words:
"( a ) no Order shall be made under this Section applying this Part of this Act to goods of any class or description unless the committee to whom the matter has been referred under this Section have reported that in their opinion production in the industry manufacturing similar goods in the United Kingdom is being carried on with reasonable efficiency and economy; and
( b )."—[ Mr. Baldwin. ]
CLAUSE 3.—(Charge of Customs Duties on goods to which Part II applies.)
(3) An order under this Part of this Act may extend to goods brought back into the United Kingdom after having been exported therefrom for the purpose of undergoing any process out of the United Kingdom, and in such case the goods shall be deemed for the purpose of this Part of this Act to have been manufactured in the country in which they have undergone such process, but the importer shall, on proof to the satisfaction of the Commissioners of the value of the goods free on board at the time of such exportation, and of the indemnity thereof, and that no drawback has been allowed thereon on the exportation thereof, be entitled to be repaid by the Commissioners such proportion of the duty paid under this Part of this Act on the goods so brought back after having undergone such process as aforesaid as represents the duty on the value of the goods before exportation.
Amendments made: In Sub-section (3), leave out the words "free on board."
Leave out the words "the duty on," and insert instead thereof the words "one-third of."
At the end of Sub-section (3), add the words "and of freight and insurance outwards."—[ Mr. Baldwin. ]
CLAUSE 6.—(Exceptions.)
Subject to such conditions as the Commissioners may direct for securing that the provisions of this Part of this Act shall not be evaded, this Part of this Act shall not apply to any goods which had left the place from which they were consigned to the United Kingdom not later than seven days after the date of the order applying this Part of this Act to goods of the class or description in question.
Amendment made: Leave out the word "seven," and insert instead thereof the word "fourteen."—[ Mr. Baldwin. ]
CLAUSE 7.—(Constitution of Committees.)
(3) A committee to whom any matter is referred under this Part of this Act shall forthwith in accordance with such rules of procedure as may be prescribed inquire into the matter so referred and report thereon to the President of the Board.
Amendment made: At the end of Subsection (3), add the words
"Provided that the sittings of the committee at which evidence is taken shall be held in public, except that the committee shall refuse to allow the public to be present at any proceedings of the committee during the hearing of evidence on matters which, in their opinion, are of a confidential character."—[ Mr. Baldwin. ]
CLAUSE 8.—(Meaning of "cost of production.")
In this Part of this Act the expression "cost of production" in relation to goods of any class or description means the current sterling equivalent of—
( a ) the wholesale price at the works charged for goods of the class or description for consumption in the country of manufacture; or
( b ) if no such goods are sold for consumption in that country, the price which, having regard to the prices charged for goods as near as may be similar when so sold or when sold for exportation to other countries, would be so charged if the goods were sold in that country;
after deducting in either case any excise or other internal duty leviable in that country and an amount equal to five per cent. of the price.
Amendment made: Leave out all the words after the word "of" ["current sterling equivalent of"], and insert instead thereof the words
"ninety-five per cent. of—
CLAUSE 10.—(Value of goods for purposes of Act.)
(2) If in ascertaining the proper rate of duty chargeable on any goods under this Act any dispute arises as to the value of the goods, that question shall be referred to the arbitration of a referee appointed by the Treasury, and the decision of the referee with respect to the matter in dispute shall be final and conclusive.
Amendments made: In Sub-section (2), leave out the word "Treasury," and insert instead thereof the words "Lord Chancellor."
After the words last inserted, add the words "who shall not be an official of any Government Department."—[ Mr. Baldwin. ]
CLAUSE 11.—(Determination of disputes.)
If any dispute arises as to whether any goods imported into the United Kingdom are goods specified in the Schedule to this Act or in any list made by the Board under Part I of this Act, or are goods to which an order made under Part II of this Act applies, the question shall be referred to the arbitration of a referee to be appointed by the Treasury, and the decision of the referee with respect to the matter in dispute shall be final and conclusive, and Sections thirty and thirty-one of the Customs Consolidation Act, 1876, shall apply as if the dispute were a dispute as to the proper rate of duty payable, with the substitution of an application for a reference to a referee under this Section for the action or suit mentioned in those Sections.
Amendments made: Leave out the word "Treasury," and insert instead thereof the words "Lord Chancellor."
After the words last inserted add the words, "who shall not be an official of any Government Department."—[ Mr. Baldwin. ]
CLAUSE 12.—(Supplementary provisions as to new duties.)
(1) If it is proved to the satisfaction of the Commissioners that a duty of Customs has been duly paid in respect of any goods under this Act, and the goods have not been used in the United Kingdom, a drawback equal to the amount of duty paid shall be allowed on those goods if exported as merchandise.
(2) Section six of the Customs and Inland Revenue Act, 1879, shall not apply to goods liable to duties of Customs under this Act, and any such goods imported into the United Kingdom after exportation therefrom shall be exempt from duty, if it is shown to the satisfaction of the Commissioners either that the goods had not been imported previously to exportation, or that no drawback of duty was allowed on exportation, or that any drawback so allowed has been repaid to the Exchequer:
Provided that goods which have been imported and exported by way of transit under bond shall not be deemed to have been imported or exported under this provision.
I beg to move, in Sub-section (1), after the word "Kingdom," to insert the words
It will be observed that under this Clause, if manufactured goods come into this country arid are then exported, provided that that is proved to the satisfaction of the Commissioners, the duty is repaid, and no work need be done on the goods beyond the work of stevedoring and warehousing. But if goods are worked up into manufactured articles employing British labour, and are then exported, presumably at a higher price, no rebate on the duty paid is allowed. I am sure that hon. Members will agree with me that that is a very peculiar situation. My right hon. Friend the Member for Derby (Mr. Thomas) remarks that it is a good way to encourage trade. Of course the whole of this Bill will have the effect of discouraging trade, but I do not want to go into that at the moment; I want to mollify the President of the Board of Trade, and to appeal to him to give us a little concession in this matter. If a motor car, for example, is imported from a country with a collapsed exchange, such as Germany, if duty is paid on it, and it is then exported straight to, say, South America, under Clause 12 the duty can be got back; but if you import the raw material for making a motor car, or any part of the machinery, and work it up in this country—employing, perhaps, British coach-work, while parts of the engine can be got cheaply abroad—if in that way you employ skilled British labour and then sell the motor car abroad, you cannot, under the Bill as it is drawn, get back the duty paid upon the imported raw material.
I do think that that is a situation which ought to be met, and I hope the Government will accept this Amendment. In the first place, it is very essential to-day, if we are to feed our people in the coming winter, that we should export goods to pay for the food and raw materials that we bring in. Anything that will assist the British export trade should, surely, be encouraged by any Government, whatever its politics, and I believe that this Amendment, if accepted, will do that. Secondly, it will lead to work for British people on raw material bought at a cheap rate from abroad and worked up in this country, and, therefore, will enable our manufacturers to compete successfully in the markets of the world. The very fact of our allowing certain imports to be brought here on a profitable basis means that goods have to go out to replace them, and therefore this Amendment will not only help our export trade directly, but also indirectly, by enabling certain raw materials to be bought from abroad, it will help our export of goods to pay for the raw materials. If the Government do not accept this Amendment, I can only suppose that they wish to prevent us from buying goods, even raw materials for our manufactures, from foreigners—unless, possibly, it may be said that under the present wording of the Bill such raw materials will come in under Sub-section (1) of Clause 12. If that be the explanation, I am, of course, prepared to withdraw the Amendment, but if not, I really cannot imagine why the Government should not accept it. As I have said, I do not want to take up the time of the House, in spite of the temptation offered by the right hon. Gentleman the Member for Derby, in dealing with the general aspect of the effect of this Bill on our export trade. I only want, if possible, to persuade the President of the Board of Trade to accept what I think is a very good Amendment, and one which I cannot conceive of any reason for the Government refusing.
I beg to second the Amendment.
This Bill as a whole is a highly controversial one, and during its various stages a great variety of opinion has been expressed, but upon one feature there has been almost common agreement, and that is the actual need for the restoration of our export trade for the purposes of the recuperation and the economic safety of the country. I am afraid that whatever I say now will be more or less repetition of what has been said already, but surely upon such a very simple practical proposition as this, that if you can import a commodity at a price which will enable you to produce a finished article upon which is employed a much larger amount of labour than would have been employed upon the raw material which came from abroad—surely, upon such a proposition, there might almost be unanimity of opinion. I think myself that, without breaking into the structure of this Bill, this Amendment is one which could be accepted. According to the Preamble of the Bill, it is clear that it is a Bill for the safeguarding of certain special industries. I do not wish to dispute that Preamble, and I am sure that, as far as the President of the. Board of Trade is concerned, his wish in connection with this or any other Bill would be to safeguard our industries. Take the classic case of steel. I believe I am right in saying that steel imported for the purpose of shipbuilding gives employment to five men as against one; that is to say, that the amount of employment furnished by a given quantity of steel turned into ships would be such that five times the amount would be paid in the actual building of the ships as was paid for the steel. I quite realise that it is a legitimate object that we should ourselves make steel in this country. I wish we could, and I hope our steel trade will once again be restored. But supposing you lose, as you undoubtedly will, shipbuilding orders if you have to buy steel at the home price, the losing of these orders does not bring you a corresponding amount of work in the steel trade. You lose both. Therefore I would venture strongly to urge the President of the Board of Trade—not in any polemical sense, or with any desire to secure anything in the nature of a party victory, but simply in the interests of the working people of this country—to consider whether he cannot embody this Amendment in the Bill.
There is one side of this question which has not yet been touched upon, and that is that, if we refuse to allow cheap raw materials or half-manufactured materials to come into this country, they will go elsewhere and will compete against us. Some people seem to think that, if you put on a duty and make a thing dearer, your customer will have to pay a higher price, and, therefore, the Government will get the duty and your trade will go on just the same. To some extent, in a very limited way, that is true of the home trade. If you make your raw materials or your half-manufactured materials dearer, then you do, of course, keep your home market, but you keep it at a disadvantage—that is to say, you make all the goods supplied in the home market dearer, and we all have to do with less. At any rate, however, you do not altogether lose the home market. But when you are dealing with things which are going to be re-exported, if you refuse to allow them to come into this country on advantageous terms, they will simply go to other countries, and will be worked up there in order that they may be supplied to the world's markets. If pig-iron, for instance, is offered at a cheap rate for import into this country, and you put on duties which keep it out, or make it difficult for it to come in, at first sight it seems a very nice thing for the makers of pig-iron in this country, and no doubt, so far as the home market is concerned, it does enable them to keep some grip upon it, and everyone else has to pay for it or do with less. If you apply the same principle to other articles, then the maker of pig-iron has to do with less of those other articles, and it becomes a regular system of robbing Peter to pay Paul all round, as everyone has to do with less in the long run.
This Amendment deals with exports. If you keep out cheap pig-iron from this country, you do not increase the demand for pig-iron for your export trade, because that cheap pig-iron, whether it be in Germany or Belgium, or wherever it may be, is either manufactured in those countries for the world market, or is sent to some other country which will receive it, whereas England will not. The result is that the world market is supplied with steel and articles made from steel without our intervention at all, and we lose the market. I do not say we lose every bit of it, but we lose a very great part of it, owing to our refusal to avail ourselves of the cheap raw material, which is, as a matter of fact, a half-manufactured material, as nearly all raw materials are. This is a principle which is acknowledged in all Protectionist systems, and to my mind it is astounding that the Government are ignoring it in this case. In all Protectionist systems of which I have ever known it is a principle to let in raw material so that the manufactures of the country may flourish and may have a chance in the world markets. The nearer an article comes to a raw material, the less manufacture there is upon it, the more easily it is let in under all well thought out Protectionist systems. You do not, however, find that in this Bill. The iron is to be kept out; the half-manufactured steel is to be kept out; and, therefore, bridge, work, engineering work, shipbuilding, is to be made dearer in this country, the world market is to be lost to us, and other countries are to have it because they are wise enough to take the cheap materials.
Let me quote another case. Only the other day a gentleman said to me, with regard to chrome leather, that, if that is not brought into this country because it is made in a, country with a depreciated exchange, at any rate he hoped that something would be done for the boot trade, because if that leather does not come into this country to enable our boot manufacturers to make cheap boots for the world market, it will be used up, either in the country where it is made, or in some other country which is wise enough to receive that half-manufactured material and thereby stimulate its own export industry and get control of the world market—with which this country, it seems, is now to be invited to refuse to have anything more to do, unless it is obliging enough to take high-priced goods from us at more than the price for which similar goods cam be got from other countries. It is an astounding thing that this has not been recognised by the Government in drawing up this Measure, and it seems to me to s)how that it is not a well-thought out and consistent Measure at all, but a matter of patches and shreds and compromises put together to try to please this party and that party which could not afterwards be built up into a logical whole because the compromises and the concessions would all go to pieces in the process.
If you are going to put taxes on goods coming into this country, if you are going to make life dearer for the people, and impede the trade of the country, and prevent our getting goods from abroad, and prevent our getting reparations, and prevent our having a market abroad for our goods, at any rate, let that be confined to such goods as are going to be consumed in this country. If we are all poorer, at any rate we shall not all starve. But if you put these duties on to the raw materials and semi-manufactured materials which come into this country to enable us to carry on our export trade, our export traders are coming to ruin, and we are not only going to be worse off, but we are actually going to be out of work and to starve. The way in which this Amendment proposes to meet this situation is to extend the proposal of the Government. The Government has said, "If you bring pig-iron into this country, and afterwards export it as pig-iron, you may apply for a rebate." We say, if you can prove that it has been used in some finished iron or steel product you ought to be entitled to have a rebate on that. Just the same if it has been used in building a ship you ought to be entitled to have a rebate if you can prove that you have exported that iron in the form of a ship. If it is leather that comes into the country, and you you export it as leather, the Government give the right to claim a rebate. We say, if it is exported in the form of boots, all the more reason for giving a rebate, because it has meanwhile given employment to British labour and capital. I support the Amendment, which I believe to be essential to the prosperity of our export trade.
The hon. Member seems to have got let loose on one of his old anti-tariff speeches, and has been talking as if this was a Protectionist Measure. It is a Free Trade Measure which is designed for a certain specific purpose—to maintian certain industries against unfair and improper competition. The object is not protection against any fair competition. The hon. Member referred to this as if it was a means for enabling employment to be increased or maintained. I will take the illustration which has been already used—that of the import of foreign pig-iron, which can come into the country at a very low price. It it comes in such a way as will bring it within the mischief of the Act, it will operate, and the Act would prevail to prevent the mischief which would be done by the unfair competition of pig-iron coming into this country to displace the manufacture of pig-iron by manufacturers here. It is quite reasonable to suppose that under many circumstances pig-iron could be bought and made into steel with advantage. Foreign pig-iron may be bought and used in that way, as is being done at the present moment. I do not suggest that pig-iron which is now being brought in is being brought in improperly—that it is being dumped—but supposing it were, a great injustice might be done to the manufacturer of pig-iron. You might be preventing the employment of large numbers of iron manufacturers in their furnaces. That, again, would have its reflex, and you would have the limestone quarries standing, the iron ore pits standing, and the small coke accumulating which you would use in your blast furnaces for the manufacture of pig-iron, with the result that the production of coal would be reduced. The thing is continuous, and might have a very serious and damaging effect by the unfair competition of foreign pig-iron, which it is the purpose of this Bill to prevent. For these special reasons I hope the President of the Board of Trade will not accept the Amendment, and that the Bill will not be used as if it was a Measure which was designed for the protection of British industries against fair competition, but simply as if it was against unfair competition, and as one which will allow us to maintain in their full force and virility those great industries of mining and the manufacture of iron which have so much to do with maintaining our position as a great nation amongst the nations of the earth. If we are content to become manufacturers of steel out of foreign iron, you may say good-bye to the welfare and the prosperity of the great industries of the North of England which the hon. Member represents.
The House naturally listens with respect to the steel manufacturer who has just been speaking because of his intimate knowledge of the trade, but I wish he had pursued the illustration he gave a little more closely because I failed entirely to follow his reasoning that the Amendment would in any way throw pig-iron manufacturers out of employment.
If it operates to any extent.
The Amendment would not free from the restrictions of the Bill the wholesale importation of pig-iron or steel. It simply says that where pig-iron comes into the country and is used to be manufacturered up into articles which are going to be exported again, that pig-iron shall receive the drawback. The hon. Gentleman says, if you let the pig-iron in it would prevent other pig-iron being made here under similar conditions, but will it do anything of the sort? The presumption is that the pig-iron comes into the country because it can be brought here at a cheaper price than the pig-iron that is made in this country.
My objection was not to the bringing in of the pig-iron which was brought in under fair and reasonable conditions, but when there was a specfic attempt by manufacturers of pig-iron abroad to capture our market and destroy our pig-iron manufacture and they dumped pig-iron into our country below cost for specific reasons and purposes, then the operation of the Bill is beneficial no matter what the ultimate result may be to the particular steel that is made.
I fear the hon. Gentleman has not read the Amendment. It deals simply and solely with pig-iron that comes into this country to be re-exported in manfactured form. It only refers to that part of our trade which is export trade. The hon. Gentleman says if pig-iron comes in at this cheap price it will throw out of work a number of men engaged in the manufacture of pig-iron. Why does it come in? It comes in because it is cheaper than we can manufacture here, and if it is kept out the pig-iron that is made in this country at a higher price, at a price so high that it cannot be re-exported for the world markets—
indicated dissent.
Why, then, does it come in if the English manufacturer can manufacture all the pig-iron that is required?
It is dumped.
Surely the hon. Gentleman means by "dumped" that it comes in at a cheaper price than it can be made here.
No, cheaper than it can be made abroad. If it comes in at the price they can make it abroad, that is not dumped, but if it comes in here at 87s. 6d. a ton and it costs them 97s. 6d. to make it, that is dumped.
But does the hon. Gentleman suggest that the English manufacturer buys foreign pig-iron for the sake of buying foreign pig-iron, whether it is cheaper or not than English pig-iron? Surely if he can get English pig-iron, or steel, at as cheap a price as he can get it from abroad, he will prefer the English make, and therefore the only reason why this material will come in is because it is cheaper than the English manufacturer can make it. Surely that must be conclusive. You cannot possibly deny that.
You are missing the point.
The hon. Gentleman is missing the point of the Amendment. This comes into the country because it is cheaper than the English manufacturer can make it. The Clause as it stands gives relief to the merchant, but it refuses relief to the workman. The merchant who can bring in motor cars or steel bars and re-export them without putting any work in gets relief from the restrictions of the Bill under the Clause, and what the Amendment seeks to do is to give to the workman and his employer the same relief on export as the Government give to the merchant who really passes the things in and out of the country. The hon. Member for West Renfrew (Sir J. Greig) posed yesterday as a Free Trader who is anxious to have fair treatment for everyone concerned. I am certain he will support this Amendment because it asks for the manufacturer and for the British workmen the same fair treatment and the same equality of consideration as the Government are prepared to give to the merchant who simply acts as a go-between in the trade coming into this country and going out to other countries.
This is really a much more serious matter than the Government appear to realise. The President of the Board of Trade suggested yesterday that I appeared to have an attack of nerves which came on at the end of an arduous sitting. The nervousness which is created in the country is the nervousness of uncertainty and unsettlement in not knowing what is going to befall. The right hon. Gentleman knows perfectly well, as one who is engaged in trade on a large scale, that the one thing the manufacturer requires above everything else is certainty and freedom from unsettlement. He takes the chance of the variations in the market and uses his own judgment. When it comes to the interference of a bureaucratic Department, which may be swayed first by one reason and then by another, possibly by political reasons, a feeling of uncertainty and unsettlement is created which makes business practically impossible. He says that steel makers and the re-rolling industry need not be alarmed and concerned at the operation of the Bill, that it is not going to keep out all the manufactures which have been coming in, and you have to prove that the steel trade is hurt before unemployment is caused. That is true. But as long as the possibility is there of some English steel manufacturer going to the Board of Trade and saying: "Steel billets are coming in cheaper than I can make them and you must stop them, because it is causing unemployment in my steel works," as long as the manufacturer of steel bars or re-rolling wire or sheets or whatever it may be, knows that he may be attacked in that way and knows that this element of uncertainty is created, it cripples his trade and injures it. Contracts are made for the purchase of foreign materials for rolling out and re-rolling six and 12 months ahead. How can men enter into contracts on these lines if there is no certainty as to what the Government will do in regard to protection in the way suggested by this Bill? You are dealing with a trade which in 1913 exported over 1,000,000 tons of finished steel, whether in wire, galvanised sheets, rods, angles or sections, and mainly rolled out of semi-foreign steel, or if not rolled out of semi-foreign steel, rolled out of English steel, which was got at a reasonable price because the English steel manufacturer knew that he had to face the competition of the foreigner.
So he will now from the countries that have not depreciated exchanges.
The argument this evening has been that the depreciated exchanges of so many countries abroad will give our competitors this protection. So long as there is this uncertainty, so long as there is danger of raising prices owing to the ring fence which is going to be created by this Bill, you are killing by fear the manufacture and the re-rolling of steel products which has been a specialised industry for so long. During the last 20 or 30 years large industries have been built up in this country, with specialised workers, who have special skill in the re-rolling of sections, the manufacture of corrugated sheets, etc., which go to the uttermost parts of the earth, with a huge trade in India and a huge trade in the Far East, where we have to compete with the manufactures of the world, and so that we can compete with them we have to buy in the cheapest market. It is all very well to protect an industry here and to get the home markets at high prices, but the great bulk of the products of the industries to which I am referring belong to the world market, and if you shut the door to our export trade in the cheap manufacture of half finished products you are going to kill industry. I appeal to the right hon. Gentleman to accept this Amendment, because it only asks for the British workers and employers the same protection which the Government are giving to the merchants. Why they should refuse to give that protection to the worker and the manufacturer of these goods which are re-exported, which they say they will give to the merchant, I fail to see.
After the Amendments which were put from the Chair a little while ago I am encouraged to hope that the President of the Board of Trade will accept this Amendment. I spoke at length on this subject yesterday in connection with the shipbuilding industry. My constituency on the Clyde and a large industrial area round the Clyde is keenly interested not only in this Bill, but in this particular Amendment. Glasgow and the West of Scotland have been noted for many years as communities of keen merchants and successful manufacturers, and they have built up that reputation through purchasing their requirements in the markets of the world. This Bill and this provision excite keen interest in the West of Scotland. A big meeting was held in Glasgow on Monday last, and I observe that the "Glasgow Herald," an organ which is not unfriendly to the Government, described the meeting as weight, because he was trained for many years in the keen commercial atmosphere of that great city? These business men think that the provisions of this Bill, which will deny them raw material for their industry at the lowest possible price, "are cumbersome and unworkable, will give rise to endless serious restrictions, and will be fatal to the successful transaction of both home and export trade." That is the considered judgment of the business men in Glasgow, who are not politicians, but merchants and manufacturers, and I hope the President of the Board of Trade will accept the Amendment. Yesterday the matter was raised in a more definite and concrete form dealing with the shipbuilding industry. I appeal to the hon. Member for West Renfrew (Sir J. Greig) to support my view that we should take into consideration the views of the business men of the West of Scotland. They are anxious that raw materials for their manufactured goods should be imported from outside this country.
If manufacturers are to receive this particular privilege, it should rest with the manufacturer to prove to the satisfaction of the Commissioners that the raw materials they have bought are being used for the goods which they are going to export to the uttermost parts of the world. It should rest with them, because they are going to be granted a particular privilege. Our Amendment makes it quite clear that the duty should be paid originally, and that they should have to appear before the Commissioners to prove to the satisfaction of the Commissioners that the raw materials of their industry, which are the manufactured1 goods of another industry, are going to be used, and have been used, in the export of their products outside the United Kingdom. The President of the Board of Trade has already met the criticism advanced from this side of the House in the Amendments which were put from the Chair at 7 o'clock, and I hope that he will see his way to accept this Amendment.
I support the appeal to the President of the Board of Trade that he should accept this Amendment. If the Clause stands without this Amendment it will deal a deadly blow at our export trade. One thing is more necessary than anything else, and that is, that we should recover our export trade. One would imagine that the one object of the Government was not only to check and hinder, but to destroy our export trade altogether. Before the War this country enjoyed supremacy among other nations in shipbuilding. Under this Clause as it stands the shipbuilding industry would be vitally affected. I have in mind a case which I hope the President of the Board of Trade will consider. It is the case of a motor manufacturing business which has recently, in order to develop its business, started works in the United States of America. Under conditions as they exist at present it might happen that business was slack here and work was going on ahead across the Atlantic or vice versa. The business at the present time is interchangeable. The capital employed is very largely British, and the interest on the capital is an added profit to this country. It might suit the American business at a particular time to manufacture a larger number of a particular component part of a motor car and send them to this country to be used in the manufacture of the same car here. It might so happen under this Bill that these parts would be subject to a duty of 33⅓ per cent.
If these parts created by British capital abroad and brought into this country are made up into the finished car, they should be allowed the drawback if that car is again re-exported, but I see nothing in this Clause that would allow that to be done. You are therefore by this Clause not only creating chaos but making it more difficult for the building up of business which is running on both sides of the Atlantic. In the interests of this country—[An HON. MEMBER: "And American labour!"] Yes, American labour is employed, but does the hon. Member suggest that it is not a good thing to extend your business into other parts of the world? I am willing to give way if he will explain what he meant. Here is a business which has extended, and this Bill will create chaos and will make it difficult to conduct that business on sound business lines. Indeed, it would be destroyed if this Clause was put into operation. I listened to a speech from the hon. Member for the Exchange Division of Manchester (Sir J. Randles) this evening. It was the sort of speech which one heard before the War, during the great fiscal controversy. One can remember hearing over and over again the speech that was delivered by the hon. Member to-night.
By both sides.
Yes, by both sides. I understand why the hon. Member made the speech that he did to-night. This Bill does not go far enough for him. He is a whole-hogger Protectionist.
It goes quite far enough, thank you.
8.0 P.M.
I am glad the hon. Member is present. He has moderated his opinion. If he is willing to accept this we might almost welcome him as a convert to our 8.0 P.M. views. What he is going to get out of this Bill when it comes into operation Heaver, only knows. The right hon. Gentleman yesterday, I think, said that this part of the Bill was both coherent and consistent. I wondered when I heard that statement whether the right hon. Gentleman had read his own Bill. I can bee nothing in it but a mass of incoherences and inconsistencies. If the right hon. Gentleman will not accept this Amendment it will be a more incoherent, a more inconsistent and a worse Bill than it is to-day.
I trust that the few representatives of the Labour party present will have taken due notice of the speech of the hon. and gallant Member for Kincardine (Lieut.-Colonel A. Murray). One of the objects of this Bill, as I understood it, was to decrease unemployment. The hon. and gallant Gentleman apparently wants to encourage, for the benefit of the capitalist and investor, the making of component parts in America by American labour, whereas—
I am sure that the hon. Member does not want to misrepresent me. If he will read my remarks he will see that no such object was contemplated by me. I do not want to encourage employment abroad as against this country.
I will accept that definitely as the hon. Member's wishes, but he is arguing in favour of this Amendment because he wants to enable these capitalists and investors, when it is more convenient, to manufacture these component parts in America by American labour instead of by British labour in this country.
No.
Then I fail to see the point of the case which he quoted of the motor manufacturing company which has established a business on the other side of the Atlantic which, he said, at times would find it more convenient to manufacture certain component parts over there, and which would be discouraged from doing so, or find it not worth while to do so owing to this Clause.
That is an ordinary business proposition.
May I point out that that particular business proposition is not one in the interests of the Labour party, for it reduces employment in this country. I am prepared to give the hon. and gallant Member every credit for the best intentions, but we are dealing now not with his intentions, but with his argument, and again I recommend Members of the Labour party to consider that in dealing with this particular Amendment. It seems to me that the idea of this Amendment is, as far as possible, to whittle down this Bill and make it ineffective. It is all very well to talk about increasing your exports, but what hon. Gentlemen who talk so much about that point do not seem to realise is that the great object of increasing our exports is to get a good price for them, and to get value for this country; and in order to do that, to increase our exports in a profitable way, we want to export the products of British labour rather than to export a mere putting together of the results of labour in other countries.
We want to do both.
The hon. and gallant Gentleman wants a great deal, but, if he wants to do both, I hope that he will vote, against this Amendment with a view to seeing that we protect the making in this country, as far as we reasonably can, of all parts of the machinery which we are economically justified in making. I point that out as an example of the way in which the opposition to this Bill, and the Amendments which have been proposed, tend to go to the very heart of the matter, which is to try to improve the chance of employment in this country, as against letting these things be manufactured by foreign labour, be it in America or elsewhere.
Of course the President of the Board of Trade is accepting this Amendment for the best of all reasons, that the principle is in operation to-day. If you import a certain article under the import duties and you wish to avoid paying the 33⅓ per cent. you make an arrangement with His Majesty's customers who allow you to take those apparatus to your factories, work them up to your component parts, and ship them again without paying any duty. That is what you are doing to-day with semi-manufactured articles. That applies to factories at present. I have one in my mind. What we are asking in this Amendment is that you should extend the operation of it and not confine it to the manufacture of semi-manufactured articles. What we want to do is to place two manufacturers in the same position. If His Majesty's Customs have in operation a scheme for meeting one set of industries, they must have a scheme for meeting another set of industries. I admit that there are some difficulties, but they can be overcome. The manufacturer must make a sworn declaration that in the article which he is exporting he has used a certain number of steel plates, or certain other commodities, and no doubt the Customs will have to be satisfied, and that can be done. But the President must not permit one manufacturer to get a preference which he denies to another manufacturer. As the principle is already in operation, the President has no option but to accept this precaution as a reasonable safeguard.
This Amendment is not very distantly related to one which we had yesterday. The discussion on this Bill has now gone on for some time, and to-night for the first time I have noticed some signs in this Debate which give me a little encouragement. Some hon. Members this evening have spoken on the assumption that this Bill is going to damage English industries seriously, going to penalise manufacturers, going to impose heavy duties on a great many articles of raw material which are used by the home manufacturer. On the other hand, my hon. Friend, the Member for Chippenham (Mr. Terrell) has told us this evening that this Bill is perfectly futile and is no good at all. From those two circumstances I must say that I have got good cheer, and I am beginning to think that this Bill may do some good. I am sure that those Members of the House who have been fairly constant in their attendance during the Debates which have gone on at intervals during the last three months will realise, as I do, that it has not always been easy to satisfy the one extreme or the other. But I do take some encouragement to myself from the course of the Debate this evening, and I shall continue to do so to the best of my ability to the end.
I do not think that the House will expect me to follow every point that has been made this evening. I am afraid that we have repeated ourselves in these Debates, because points come up again and again, and perhaps some of the points put in debate this afternoon have been answered by me before now, or I have attempted to answer them; and if I have been unable to do so before now I do not think that I should be able to do so now. But there are one or two points to which I may refer. The hon. Member for Consett (Mr. A. Williams) who has taken a great interest in the dumping of goods in his district says that if dumped goods are excluded it will prevent them from coming into this country and not allow them to be further manufactured here, and that they will go to other countries to be worked up. Every statement which one makes on these matters of economics must be made subject to certain qualifications. They may go to other countries to be worked up, if facilities for working them up exist in those countries, and if the tariff in those countries permits them to go in. If both those conditions are fulfilled what has been stated may happen.
The hon. Member for Middlesbrough (Mr. Thomson) spoke again on a subject on which he has spoken with knowledge several times, and once I am afraid I was somewhat over-excited into answering him at some length. But I would point out to him that we are trying to prevent dumping, and that that is the reason why we are trying to stop dumped goods from coming into this country. If a merchant sells from one country to another and can get into that country, I certainly can see no reason why we should interfere with him, because the selling of those goods is not affecting employment in this country so far as I can see, because if a merchant in this country did not sell them from one country to the other then the trade might be done direct, and I am anxious that trade of that kind should be kept. I want to take no steps in this Bill except those steps that I believe to be necessary to stop such dumping as will cause serious unemployment in this country. That, of course, is the reason why I cannot accept this Amendment. On the question of a tariff I know we differ in our opinion from hon. Members opposite who consider this a Tariff Measure, which we do not—we can each hold our own views—but if we were imposing a general tariff in this country the question of manufacturing for export is a very important one, and I think that I am right in saying that at least as proposed at present—for the new law is not yet settled—the United States give the drawback on certain materials whether they are dumped or not. In Canada, as I am informed, the rebate does not apply to the dumping duty. I do not think that the iron trade is really as low as has been suggested. No information which has come to me, either officially or privately, leads mem to think that it has suffered, at any rate, to the extent which my hon. Friend indicatel.
With regard to the speech of the hon. Member for Greenock (Sir G. Collins), I quite agree that this is a non-political Amendment. I am very sorry that Glasgow business men should consider the Bill cumbersome and unworkable. I think that that reinforces one or two remarks of mine yesterday—that people are getting a little tired of the attempts, even of the most beneficent Governments, to assist them in their business. A hypothetical case was put by the hon. and gallant Member for Kincardine (Lieut.-Colonel A. Murray). His point was that a company has motor works in this country and in the United States of America. Owing to the fact that in the United States there is a population of 100,000,000 for whom to cater, and that there is a very high tariff wall, it is found cheaper to make component parts in America than to make them in England. Therefore the time may come when it would pay the manufacturers to send the parts over here to be assembled rather than to make those parts in this country. That was the case put. The answer is simple. There is nothing to prevent those component parts coming into this country, unless they are sold at a price lower than the cost of production in America. In such an event they would be "dumped" goods; otherwise they can come in. I do not think it is a case in which my hon. and gallant Friend will suffer any loss.
I have nothing to do with it.
Well, my hon. and gallant Friend's friends. For the reasons given, it is impossible, in a Bill like this, which is designed with the sole object of preventing dumping where it leads to serious unemployment, to accept an Amendment which would have, or might have, the effect of admitting into this country a considerable quantity of material which would only aggravate unemployment.
I cannot understand what difficulty the Government have in accepting the Amendment. Clause 12 says that if a man imports a thing and re-exports it, he does not pay the duty, although he may be said to be depriving the home manufacturer of an order for the article. We ask that if he imports a thing, joins it with something else, and then re-exports it, he should not pay the duty. What is the difficulty? Suppose a man makes a motor car and imports a magneto, that he then puts the magneto into the car and sends the car abroad to a foreign market. Why should he pay a duty on the motor-car? We are told by the hon. Member for Whitechapel (Mr. Kiley) that in the case of the McKenna duties a rebate is allowed.
He would not pay on the magneto in that case.
I my view, the McKenna duties are in the nature of a tariff. These duties are not.
Is it a fact that the McKenna duties are not payable on goods imported for remanufacture with a view to export?
I think that is so, because, as I have explained often, in the case of duties put on as tariffs you make those Regulations.
What instructions does the President of the Board of Trade give to his officers about these duties? Does he instruct them not to collect the duties if the articles are imported for re-manufacture and export? The fact of the matter is, that the only Minister who can answer these questions is not in the House, and has not been present throughout the Debates. I refer to the Customs Minister. He has absented himself. Where does the Board of Trade draw the line? If a man imports a dumped article, subject to this duty, and re-exports it, he does not pay the duty. If he imports it and joins it with something else, even by the most elementary process of manufacture, and then exports it, he pays a duty. What possible logic can there be in that? What practical difficulty is there in remitting the duty in such cases? The articles described in the Amendment are raw materials used for the purpose of manufacture. Are raw materials subject to duty under this Bill? Will the right' hon. Gentleman tell us that? In the classic phrase, I pause for a reply. Are raw materials subject to a duty?
In one of our earliest Debates, I said that raw materials are not included in the Bill.
Then why not accept the Amendment? The fact is that it is not possible to define raw materials. As it is not possible, the officials of the Minister, who is not present, will impose a duty on the raw material, whether the President of the Board of Trade says yea or nay, because he has no power in the matter. Once the Act is passed, it is administered not by him, but by the absentee, who is not present to answer questions. I have made the request that
some representative of the Treasury should be present here to-night. What was there unreasonable in that? I have been here a good many years, but I have never known an occasion when a Customs Bill was being discussed and the Treasury official was absent. It is not very respectful to the House. Inasmuch as, after due notice, the Minister persists in absenting himself, I shall state the reason why he does so. He publicly pledged himself to oppose this Bill; he and 50 other Members were pledged to a series of Resolutions which differ absolutely from the principle of the Bill.
How does the hon. and gallant Member connect that with the Amendment now under discussion?
It is a statement pledging the Financial Secretary to the Treasury to support this Amendment. It says
"It is vital that our manufacturers should be able to obtain essential commodities for their business at the cheapest rates and in the best markets of the world."
That is the Resolution with which the Financial Secretary to the Treasury is associated, and the reason why he does not come to the Debates is because, being opposed to the Bill, he prefers to slink through the Lobby in support of it rather than come into the House—I say this advisedly—as in duty bound to his Department, to debate and explain these proposals. We have had matters under discussion here which cannot be satisfactorily explained by a Minister whose Department will have nothing to do with the administration of these proposals once the Bill becomes an Act of Parliament.
Question put, "That those words be there inserted in the Bill."
The House divided: Ayes, 55; Noes, 129.
Division No. 344.] AYES. [8.28 p.m. Ainsworth, Captain Charles Galbraith, Samuel Hopkinson, A. (Lancaster, Mossley) Barker, G. (Monmouth, Abertillery) Gillis, William Irving, Dan Barton, Sir William (Oldham) Glanville, Harold James John, William (Rhondda, West) Bell, James (Lancaster, Ormskirk) Graham, R. (Nelson and Colne) Johnstone, Joseph Benn, Captain Wedgwood (Leith) Graham, W. (Edinburgh, Central) Kennedy, Thomas Bowerman, Rt. Hon. Charles W. Griffiths, T. (Monmouth, Pontypool) Kenworthy, Lieut.-Commander J. M. Carter, W. (Nottingham, Mansfield) Grundy, T. W. Lawson, John James Clynes, Rt. Hon. John R. Guest, J. (York, W. R., Hemsworth) Lister, Sir R. Ashton Collins, Sir Godfrey (Greenock) Halls, Walter Lyle-Samuel, Alexander Edwards, C. (Monmouth, Bedwellty) Hayward, Evan Maclean, Rt. Hon. Sir D. (Midlothian) Edwards, G. (Norfolk, South) Henderson, Rt. Hon. A. (Widnes) MacVeagh, Jeremiah Finney, Samuel Hirst, G. H. Morgan, Major D. Watts
Mosley, Oswald Shaw, Hon. Alex. (Kilmarnock) Wilson, W. Tyson (Westhoughton) Murray, Hon. A. C. (Aberdeen) Shaw, Thomas (Preston) Wood, Major M. M. (Aberdeen, C). Myers, Thomas Spoor, B. G. Young, Robert (Lancaster, Newton) Ncwbould, Alfred Ernest Thomson, T. (Middlesbrough, West) Richardson, R. (Houghton-le-Spring) Waterson, A. E. TELLERS FOR THE AYES.— Roberts, Frederick O. (W. Bromwich) Wedgwood, Colonel Josiah C. Colonel Penry Williams and Mr. Rose, Frank H. Wig nail, James Hogge. Royce, William Stapleton Williams, Aneurin (Durham, Consett) NOES. Amery, Leopold C. M. S Hall, Lieut.-Col. Sir F. (Dulwich) Parry, Lieut.-Colonel Thomas Henry Armstrong, Henry Bruce Hanna, George Boyle Pearce, Sir William Atkey, A. R. Harmsworth, C. B. (Bedford, Luton) Pease, Rt. Hon. Herbert Pike Bagley, Captain E. Ashton Herbert, Dennis (Hertford, Watford) Perkins, Walter Frank Baldwin, Rt. Hon. Stanley Hilder, Lieut.-Colonel Frank Pratt, John William Balfour, George (Hampstead) Hood, Joseph Prescott, Major W. H. Barnston, Major Harry Hopkins, John W. W. Randies, Sir John Scurrah Bell, Lieut.-Col. w. C. H. (Devizes) Hunter, General Sir A. (Lancaster) Raw, Lieutenant-Colonel Dr. N. Betterton, Henry B. Jameson, John Gordon Rees, Sir J. D. (Nottingham, East), Bigland, Alfred Jesson, C. Remnant, Sir James Blair, Sir Reginald Johnson, Sir Stanley Richardson, Alexander (Gravesend) Borwick, Major G. O. Jones, G. W. H. (Stoke Newington) Roberts, Rt. Hon. G. H. (Norwich) Boscawen, Rt. Hon. Sir A. Griffith- Jones, J. T. (Carmarthen, Llanelly) Rodger, A, K. Bowyer, Captain G. W. E. Kellaway, Rt. Hon. Fredk. George Roundell, Colonel R. F. Breese, Major Charles E. Kenyon, Barnet Rutherford, Sir W. W. (Edge Hill) Brown, T. W. (Down, North) Kerr-Smiley, Major Peter Kerr Samuel, A. M. (Surrey, Farnham) Bruton, Sir James Kidd, James Samuel, Samuel (W'dsworth, Putney) Buckley, Lieut.-Colonel A. King, Captain Henry Douglas Sanders, Colonel Sir Robert Arthur Burn, Col. C. R. (Devon, Torquay) Lewis, Rt. Hon. J. H. (Univ., Wales) Sassoon, Sir Philip Albert Gustave D. Campbell, J. D. G. Lloyd-Greame, Sir P. Seager, Sir William Casey, T. W. Lort-Williams, J. Seddon, J. A. Chamberlain, Rt. Hn. J. A. (Birm., W.) M'Connell, Thomas Edward Shortt, Rt. Hon. E. (N'castle-on-T.) Chamberlain, N. (Birm., Lady wood) McCurdy, Rt. Hon. Charles A. Simm, M. T. Coote, Colin Reith (Isle of Ely) M'Donald, Dr. Bouverie F. p. Stanier, Captain Sir Beville Cory, Sir J. H. (Cardiff, South) Mackinder, Sir H. J. (Camlachie) Stanley, Major Hon. G. (Preston) Davidson, J. C. C. (Hemel Hempstead) Macnamara, Rt. Hon. Dr. T. J. Stanton, Charles Butt Davidson, Major-General Sir J. H. Macpherson, Rt. Hon. James I. Stewart, Gershom Davies, Thomas (Cirencester) Magnus, Sir Philip Sturrock, J. Leng Davison, Sir W. H. (Kensington, S) Malone, Major P. B. (Tottenham, S.) Sugden, W. H. Denniss, Edmund R. B. (Oldham) Mason, Robert Sutherland, Sir William Doyle, N. Grattan Mitchell, Sir William Lane Taylor, J. Evans, Ernest Moles, Thomas Terrell, George (Wilts, Chippenham) Eyres-Monsell, Com. Bolton M. Molson, Major John Elsdale Terrell, Captain R. (Oxford, Henley) Fisher, Rt. Hon. Herbert A. L. Mond, Rt. Hon. Sir Alfred Moritz Thomson, Sir W. Mitchell- (Maryhill) Ford, Patrick Johnston Morden, Col. W. Grant Tryon, Major George Clement Forrest, Walter Morison, Rt. Hon. Thomas Brash Walters, Rt. Hon. Sir John Tudor Gibbs, Colonel George Abraham Munro, Rt. Hon. Robert Wills, Lt.-Col. Sir Gilbert Alan H. Gilmour, Lieut.-Colonel Sir John Murray, William (Dumfries) Wise, Frederick Goff, Sir R. Park Neal, Arthur Wood, Sir H. K. (Woolwich, West) Green, Albert (Derby) Newman, Sir R. H. S. D. L. (Exeter) Woolcock, William James U. Greene, Lt.-Col. Sir W. (Hack'y, N.) Nicholl, Commander Sir Edward Young, E. H. (Norwich) Greenwood, William (Stockport) Norris, Colonel Sir Henry G. Gregory, Holman Palmer, Brigadier-General G. L. TELLERS FOR THE NOES.— Greig, Colonel Sir James William Parker, James Colonel Leslie Wilson and Mr. Dudley Ward.
CLAUSE 14.—(Efficiency of industries affected by dumping.)
No order shall be made applying Part II of this Act to goods of any class or description unless the committee to which the matter has been referred under Section two of this Act have reported that in their opinion production in the industry manufacturing similar goods in the United Kingdom is being carried on with reasonable efficiency and economy.
I beg to move to leave out the Clause.
I had intended to move an Amendment to Clause 14, but if the Amendment now moved by the President of the Board of Trade is carried, I shall, of course, be deprived of any opportunity of doing so. Therefore I wish to speak upon the Amendment to leave out the Clause. This is a Clause which says that before a duty can be imposed to protect any industry the Committee shall report that the industry is being carried on with reasonable efficiency and economy. That is an inquiry which must be undertaken in the case of every industry. All I suggest is, that we should add to the scope of that inquiry the duty of finding that fair wages and good conditions of labour prevail. It is perfectly obvious if the Committee is going to inquire into the conditions of efficiency, it will not add much to their labour to make a simple inquiry as to whether trade union rates are being paid and the conditions are fair. I cannot understand how the Government could possibly resist such a proposal. Of course, I am now speaking on the question of whether or not the Clause should be left out, and so in a sense I am speaking for the Government's Amendment, but they have other opportunities of making this change, and I commend it strongly to their consideration. If they wish to protect employment and industry in this country by this Clause, then surely it is not too much to ask that the workman should share in the advantage, if advantage it be. I specially appeal to hon. Members of the Labour party to support me in this matter. If a benefit is to be given to the industry, do not let it be available merely to shareholders or proprietors, but let it be a benefit in which the workpeople may have their own fair share. I imagine the hon. Member in charge of the Bill will tell us that this small, necessary, thoroughly just Amendment will be proposed and carried by his friends in another place, and I therefore support the deletion of the Clause.
If the hon. and gallant Member is supporting the deletion of the Clause, he is not in order in speaking. Under the terms of the Order of the House in regard to this Bill, one speech is allowed in support of a Government Motion to delete a Clause, and one speech against.
On a point of Order. Do I understand that under the Order of the House, although the Motion to leave out the Clause was quite formally made by the Government, the Government have no right of reply at all?
On a point of Order. I understood you, Mr. Deputy-Speaker, to rule that my hon. and gallant Friend is out of order because he supported the deletion of the Clause, and I understood you also to rule that it was in order for one speech to be made in favour of the Motion and one against. I was proposing to speak against the Motion, and I should like to ask if that is in order?
In the circumstances, I think the speech of the hon. and gallant Member for Leith (Captain W. Benn) must be regarded as a lapsus lingum, and I will therefore allow the hon. Member for Seaham (Mr. Hayward) to speak against the Motion.
All I want to say is that I think it is exceedingly deplorable that the Government should propose to delete this Clause. Certainly the Clause does not go very far, but I would like to call attention to the fact that some considerable time ago there was a Committee established to inquire into the question of our commercial and industrial policy after the War. The report of that Committee has been referred to from time to time in these Debates, and, indeed, it has been suggested that the Bill is largely based upon this report, but in this report a strong recommendation is made that if protection is to be given to any industry there shall be established something far more important even than a committee, namely, a Special Industries Board. That Board was to have very large powers of investigation and powers such as those which are granted under this Clause.
I am sure the hon. Member would not like to make a funeral speech under a complete misapprehension. I have moved to leave out the Clause, but only by reason of the fact that I have already inserted it at the proper place in the Bill, namely, at the end of Clause 2.
Then my speech becomes quite superfluous.
Question, "That the words proposed to be left out stand part of the Bill," put, and negatived.
CLAUSE 17.—(Duration of Part I.)
Part I of this Act shall continue in force for a period of five years from the commencement thereof and no longer.
I beg to move to leave out the words "Part I of."
If this Amendment be accepted, the Clause will read: to five years. It is an experimental Measure, it is a new venture, it establishes elaborate new machinery—committees, references, inquiries—and it has been extraordinary how, all the way through the Debates on this matter, the President of the Board of Trade has shown extreme diffidence in saying anything certain about it. He is not at all certain how it is going to operate; he is really not certain of practically anything about it, and I think that a Measure of this kind should be brought under review at the end of five years, when we shall have had some experience of its operation. One may be told that the House always has the power to repeal it or to bring it under review by an amending Bill, but there is all the difference in the world between that sort of thing and a specific proposal in the Act itself limiting its operation to five years. This Bill was never actually designed in order to solve the problems which it proposes to solve. I mean by that—and I do not think anybody connected with the Government will deny it—that it is not a case of the Government being confronted by a certain problem, setting themselves, with their experts, to find the best solution of that problem, and, having surveyed the whole ground, making definite proposals to that end. That is not what has happened at all. This Bill was designed and brought in primarily to keep a political pledge, and it was not designed in order to meet this particular problem at all. That is another reason which makes it all the more important that when we see how the Bill is going to operate, and what its effects are, it shall be brought under review.
Nobody has a good word to say about the Bill, and even the hon. and learned Member for Chippenham (Mr. G. Terrell) thinks we might be just as well without it, but the changing estimates of the value and the effect of the Bill which have come from the Front Bench opposite have been extraordinary. The Secretary to the Overseas Trade Department, in the first stages of the Bill, was very optimistic and made some very extravagant claims for it. The President of the Board of Trade was more modest, but hon. Members will remember that he used an allegory, which, I think, was more accurate than any allegory yet used in connection with the Bill. He likened it to the operations of a kitten in a backyard. I think it gives a very accurate idea of the sort of thing which will happen on this Bill. Hon. Members have, no doubt, seen the operations of kittens in backyards, and they know the sort of thing that is likely to occur. In view of the intricate, delicate machinery of British industry, it is all the more important that at the end of the five years we should clear the kitten out of the backyard.
I beg to second the Amendment.
I think there is a strong case for putting some definite limit to the whole of this Bill, as well as Part I. I think one is justified in saying that nobody is satisfied with the Bill. There are two sections in this House, so far as fiscal matters are concerned. There are the rabid Free Traders like myself, and the rabid Tariff Reformers, like my hon. Friend on my left. [An HCN. MEMBER: "He is a Free Trader."] Well, we will say Free Traders of one sort and Free Traders of another sort, but neither approve of the Bill. I think, perhaps, the strongest reason for putting a limit to it is, that it is a Bill which introduces into the minds of a great many classes of the trading community elements of doubt. Here is a Bill which people never know quite how and when it will operate, and I venture to think that element of doubt is one of the most unfortunate things that could be brought into commerce in a period of recuperation which we are now supposed to be beginning. It may be said that Parliament has the right to bring the Act to an end at any time, and at the end of five years, but even that does not remove the uncertainty in the minds of traders. If it were known that, at the end of five years, the Act would come to an end, it would still be possible for Parliament, if the elections had taken place meanwhile, indicating that the country was wholly in favour of the processes to which trade is going to be subjected under this Bill, to re-enact it. But I venture to say that by fixing a period you relieve at any rate the minds of the trading community of a certain element of doubt which this Bill will bring in to an extent which is not true of any other Act on the Statute Book. On that ground this Amendment is justified, and if my hon. Friend goes to a division, I shall feel bound to support him in the Lobby.
I am not altogether sure what the hon. Member who moved this Amendment meant, when he said that this might be compared to the operations of a kitten in a backyard. I care not for the moment who was the author of the metaphor, but, as I said last night, it is always dangerous to follow these metaphors too far. If in this case it is thought that a litter of legislation may follow in the future, I venture to think the hon. Member need be under no misapprehension. I really find it difficult to believe that this Amendment is pressed seriously. The Bill carries out precisely, in this matter, the pledge which was given at the last General Election, and in this case, at any rate, the pledge and the problem are the same. If my hon. Friend reads through the Bill, he will see that, under Clause 9, the legislation, in so far as it relates to the depreciated exchange, is limited in duration to three years. One hopes—it is a pious hope, which, I trust, may be realized—that some stability may come to the exchanges in three years. The protection which is given to key
industries is limited to five years. [An HON. MEMBEE: "The next war."] The hon. Member can speak for himself, but the next war is likely to be brought a great deal nearer if this country takes no steps to be ready for it when it comes. The next problem dealt with is that of selling, in another country, goods at a price below the cost of production in the country of origin, which, as the whole experience of the world shows, is a perennial problem, and, if it be right to legislate at all, it is certainly right to legislate in that matter for all time, and we are perfectly willing to give British industries that certainty. When the hon. Member who moved the Amendment comes to take up the responsibilities which now are ours, he will be able to repeal it, if he feels that that should be necessary, but I venture to think that that period will be longer off than three or five years.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 125; Noes, 54.
Division No. 345.] AYES. [8.56 p.m. Amery, Leopold C. M. S. Green, Albert (Derby) Morden, Col. W. Grant Armstrong, Henry Bruce Greene, Lt.-Col. Sir W. (Hack'y, N.) Morison, Rt. Hon. Thomas Brash Atkey, A. R. Greenwood, William (Stockport) Munro, Rt. Hon. Robert Bagley, Captain E. Ashton i Gregory, Holman Neal, Arthur Baldwin, Rt. Hon. Stanley Greig, Colonel Sir James William Newman, Colonel J. R. P. (Finchley) Balfour, George (Hampstead) Hacking, Captain Douglas H. Newman, Sir R. H. S. D. L. (Exeter) Barnston, Major Harry Hall, Lieut.-Col. Sir F. (Dulwich) Nicholl, Commander Sir Edward Bell, Lieut.-Col. w. C. H. (Devizes) Harmsworth, C. B. (Bedford, Luton) Norris, Colonel Sir Henry G. Bellairs, Commander Carlyon W. Henderson, Major V. L. (Tradeston) Parker, James Betterton, Henry B. Herbert, Dennis (Hertford, Watford) Parry, Lieut.-Colonel Thomas Henry Bigland, Alfred Hilder, Lieut.-Colonel Frank Pearce, Sir William Blair, Sir Reginald Hood, Joseph Pease, Rt. Hon. Herbert Pike Borwick, Major G. O. Hopkins, John W. W. Perkins, Walter Frank Boscawen, Rt. Hon. Sir A. Griffith- Huntar, General Sir A. (Lancaster) Pratt, John William Bowyer, Captain G. W. E. Jameson, John Gordon Prescott, Major W. H. Breese, Major Charles E. Jesson, C. Randies, Sir John Scurrah Brown, T. W. (Down, North) Johnson, Sir Stanley Raw, Lieutenant-Colonel Dr. N. Bruton, Sir James Jones, G. W. H. (Stoke Newington) Rees, Sir J. D. (Nottingham, East) Buckley, Lieut.-Colonel A. Jones, J. T. (Carmarthen, Llanelly) Richardson, Alexander (Gravesend) Burn, Col. C. R. (Devon, Torquay) Kellaway, Rt. Hon. Fredk. George Roberts, Rt. Hon. G. H. (Norwich) Campbell, J. D. G. Kenyon, Barnet Rodger, A. K. Casey, T. W. Kerr-Smiley, Major Peter Kerr Roundell, Colonel R. F. Chamberlain, Rt. Hn. J. A.(Birm., W.) Kidd, James Samuel, A. M. (Surrey, Farnham) Chamberlain, N. (Birm., Ladywood) King, Captain Henry Douglas Samuel, Samuel (W'dsworth, Putney) Clough, Sir Robert Lewis, Rt. Hon. J. H. (Univ., Wales) Sanders, Colonel Sir Robert Arthur Cory, Sir J. H. (Cardiff, South) Lloyd-Greame, Sir P. Seager, Sir William Dalziel, Sir D. (Lambeth, Brixton) Locker-Lampson, Com. O. (H'tingd'n) Soddon, J. A. Davidson, J. C. C. (Hemel Hempstead) Lort-Williams, J. Shortt, Rt. Hon. E. (N'castle-on-T.) Davidson, Major-General Sir J. H. M'Connell, Thomas Edward Simm, M. T. Davies, Thomas (Cirencester) McCurdy, Rt. Hon. Charles A. Stanler, Captain Sir Beville Denniss, Edmund R. B. (Oldham) Mackinder, Sir H. J. (Camlachie) Stanley, Major Hon. G. (Preston) Doyle, N. Grattan Macnamara, Rt. Hon. Dr. T. J. Stewart, Gershom Eyres-Monsell, Com. Bolton M. Macpherson, Rt. Hon. James I. Sturrock, J. Leng Evans, Ernest Magnus, Sir Philip Sugden, W. H. Fisher, Rt. Hon. Herbert A. L. Malone, Major P. B. (Tottenham, S.) Sutherland, Sir William Ford, Patrick Johnston Mason, Robert Taylor, J. Forrest, Walter Mitchell, Sir William Lane Terrell, George (Wilts, Chippenham) Gibbs, Colonel George Abraham Moles, Thomas Terrell, Captain R. (Oxford, Henley) Gilmour, Lieut.-Colonel Sir John Molson, Major John Elsdale Thomson, Sir W. Mitchell- (Maryhill) Goff, Sir R. Park Mond, Rt. Hon. Sir Alfred Moritz Tryon, Major George Clement
Walters, Rt. Hon. Sir John Tudor Wood, Sir H. K. (Woolwich, West) TELLERS FOR THE AYES.— Wills, Lt.-Col. Sir Gilbert Alan H. Woolcock, William James U. Colonel Leslie Wilson and Mr. Wise, Frederick Young, E. H. (Norwich) Dudley Ward. NOES. Ainsworth, Captain Charles Halls, Walter Roberts, Frederick O. (W. Bromwich) Armitage, Robert Hayward, Evan Rose, Frank H. Barker, G. (Monmouth, Abertillery) Henderson, Rt. Hon. A. (Widnes) Royce, William Stapleton Barton, Sir William (Oldham) Hirst, G. H. Spoor, B. G. Benn, Captain Wedgwood (Leith) Hopkinson, A. (Lancaster, Mossley) Thomas, Rt. Hon. James H. (Derby) Bowerman, Rt. Hon. Charles W. Irving, Dan Thomas, Sir Robert J. (Wrexham) Carter, W. (Nottingham, Mansfield) John, William (Rhondda, West) Thomson, T. (Middlesbrough, West) Clynes, Rt. Hon. John R. Johnstone, Joseph Waterson, A. E. Edwards, C. (Monmouth, Bedwellty) Kennedy, Thomas Wedgwood, Colonel Josiah C. Edwards, G. (Norfolk, South) Kenworthy, Lieut.-Commander J. M. Wignall, James Finney, Samuel Kidd, James Williams, Aneurin (Durham, Consett) Galbraith, Samuel Lawson, John James Williams, Col. P. (Middlesbrough, E.) Gillis, William Lyle-Samuel, Alexander Wilson, W. Tyson (Westhoughton) Glanville, Harold James Morgan, Major D. Watts Wood, Major M. M. (Aberdeen, C.) Graham, R. (Nelson and Colne) Mosley, Oswald Young, Robert (Lancaster, Newton) Graham, W. (Edinburgh, Central) Murray, Hon. A. C. (Aberdeen) Griffiths, T. (Monmouth, Pontypool) Myers, Thomas TELLERS FOR THE NOES.— Grundy, T. W. Newbould, Alfred Ernest Mr. Hogge and Mr. T. Shaw. Guest, J. (York, W. R., Hemsworth) Richardson, R. (Houghton-le-Spring)
Amendment proposed: To leave out the words "shall continue in force for a period of five years from the commencement thereof," and to insert instead thereof the words
"shall come into force on the first day of October, nineteen hundred and twenty-one, and shall continue in force until the expiration of five years from the passing of this Act."—[ Sir P. Lloyd-Greame. ]
Will the hon. Gentleman tell us what this means?
Yes, by leave of the House I will. I did not say anything about it, because I understood it was desired to get on to the Schedule. When this matter was considered in Committee, my right hon. Friend gave an undertaking that he would put forward an Amendment which makes the date 1st October on which the Bill will come into operation, instead of its coming into force immediately the Royal Assent is given to it.
Amendment agreed to.
Schedule
Goods Chargeable With Duty
Optical glass and optical elements, whether finished or not, microscopes, field and opera glasses, theodolites, sextants, spectroscopes and other optical intruments.
Beakers, flasks, burettes, measuring cylinders, thermometers, tubing, and other scientific glassware and lamp-blown ware, evaporating dishes, crucibles, combustion boats, and other laboratory porcelain.
Galvanometers, pyrometers, electroscopes, barometers, analytical and other precision balances, and other scientific instruments, gauges and measuring instruments of precision of the types used in engineering machine shops and viewing rooms, whether for use in such shops or rooms or not.
Wireless valves and similar rectifiers, and vacuum tubes.
Ignition magnetos and permanent magnets.
Arc-lamp carbons.
Hosiery latch needles.
Metallic tungsten, ferro-tungsten and manufactured products of metallic tungsten, and compounds (not including ores or minerals) of thorium, cerium and the other rare-earth metals.
All synthetic organic chemicals (other than synthetic organic dyestuffs, colours, and colouring matters imported for use as such, and organic intermediate products imported for their manufacture), analytical re-agents, all other fine chemicals (except sulphate of quinine of vegetable origin) and chemicals manufactured by fermentation processes.
I beg to move to leave out the words of war. This schedule brings forward certain things on the ground that they are necessary in time of war. Before the last war I was firmly convinced that there were certain things that the country was not provided with sufficiently, and which ought to be provided. I agree that optical glass and instruments made from that glass ought to be provided in case war unfortunately should come upon us. My objection to this Bill is that it does not give us the security which it pretends to give, and it does not ensure that we shall have these things. It simply puts on a paltry duty of 33⅓ per cent. on certain things, and that makes a serious upset of our trade relations, but it does not make it certain at all that we shall have these things if war should come upon us.
In optical elements there are microscopes and field and opera glasses, and they are in the nature of scientific instruments. I could quote to the House from the agenda of a learned society containing a good many complaints from professors and associations as to the inefficiency and inadequacy of the British makers of scientific instruments and apparatus, and now we are going to deliver ourselves entirely into their hands. I believe the system will be inefficient. The idea is that the manufacturers will under the protection of this 33⅓ per cent. build up great industries of a highly scientific character in this country, but I do not believe that anything of the sort will happen. If it is necessary for us to have optical glass in the event of war, I have said in this House before, and I say it again, that the proper way to provide for it is in the same way that we make sure of having armour plates, and that is for the Government to give their orders to British firms for these things. and then you will be sure of getting them up to the right quality, because you will have the foreign goods to compare them with, and you will make it a condition that they should be up to that quality. If you simply put on a duty you have no security that the goods will be made of a sufficient quality or in a sufficient quantity.
With this long schedule some of these thinks will not be produced of the quality required or in the necessary quantity. The manufacturer will go on in an inefficient way under the protection of the duty, which will just give him the margin of profit which enables him to go on in a small and inefficient way. Meanwhile, you are going to impose a very heavy burden upon the people of this country, and this will constitute a serious interference with our trade. We have been told that £50,000 is the whole value of all the optical glass produced in the world in a year. If the British Government had to buy that amount of glass it is a very small amount. There is nothing to prevent us laying in an adequate stock of that glass.
We are told improvements may take place, and that our stock will not then be up to date. Surely those responsible have exactly the same problem to face with all kinds of munitions of war, such as armour plates and ships, and they have to keep their provision up to date. They could do the same thing with glass. If an improvement takes place and the better glass comes along, you could sell off the old stock and get in the new glass, and in that way you would really have made provision against war time. What assurance have you that you will have it in this case. You put on the duty, and it may or it may not cause an industry to grow up here, and it may or it may not be an inefficient industry. We ought to take measures which will be effective, and not leave it to the possible result of a mere money premium such as this.
When you come to optical elements you include such things as ordinary spectacle glasses such as are worn by people who are getting to my time of life and such as are worn by children when the doctors are trying to correct their sight in early youth. Surely these are not instruments of war but instruments of peace, and these are going to be taxed as well as everything else, and the reason given for doing this is that we must have the skilled opticians in this country and they must have practice in making spectacles in time of peace in order that they may be able to make all sorts of instruments in time of war. That is a thoroughly unsound argument. It is very much like the old Chinese plan of burning your house down in order to roast your pig. If you want to roast your pig properly you should provide a special process, and have the roasting done in the right way but if you burn your house down in the hope that the pig may be in it at the time, even then it is possible that it may escape or your pig may be burnt to a cinder.
If you want scientific instruments, see that you have them made in this country. You should give out your orders, and do not rely upon some paltry duty which is admitted by the hon. Member for Farnham (Mr. A. M. Samuel), who seems to have made a real study of this matter, to be of no avail. A paltry duty of 33⅓ per cent. on the glass will have no effect at all. Take the question of spectacles They are not made of optical glass at all, and that is not the kind that is necessary for highly scientific instruments. Spectacles are made of crown glass, and that glass, for many years, has been made in this country. We have had a great production of it here, and it has been exported to other countries, notably to America. The manufacture of spectacles in this country has not thrived. Attempts have been made, as the glass was made here, to have the ophthalmic lenses also made here, but it has not been a success, and the trade that has grown up here is that we have made the crown glass, and sent it to America, and for a great many years America has sent back the lenses to this country. Now we are going to stop that so far as this duty of 33⅓ per cent. can do it.
What is the effect? We are practically standing here shouting across the Atlantic to America, "What fools you are to take any of our stuff. We will not take anything from you if we can possibly help it. We are going to put on these duties and keep out your stuff. It is a broad hint to you to keep out our stuff also." That is so all along the line, and it is notably so with regard to the particular articles mentioned in these three lines. I am using this merely as an illustration of what I mean. Look at the way in which India has copied our Tariff Reform ideas by immediately putting on duties to keep out our cotton goods. Are we going to ask America in the same way to keep out our crown glass? We cannot expect them to take it if we refuse to take from them the spectacles which they make with it. If we put on duties to keep their goods out, it is an invitation to America and to all foreign countries to put on extra duties to keep out the products which we are making and which we usually send to them.
I have already referred to the fact that the agenda of a learned society is full of complaints with regard to English manufacturers in respect of their manufacture of scientific instruments. It is notorious that during the last few years the English manufacturers have had the market almost entirely to themselves, but they have not been able to produce things of the quality required. Scientific institutions, educational institutions, and scientific men up and down the country say that if these duties are put on they will still be obliged to have the foreign goods as far as they can afford it, because they cannot get articles of the quality required of home manufacture. I move the omission of these three lines as a protest, so far as I am concerned, not against making things which it is necessary we should have in time of war, but as a protest against the thoroughly inefficient and delusive way in which the Government are dealing with this matter. That way will give us dear things and things of poor quality; it will interfere with our trade, and it will be an invitation to foreign nations to shut out our exports. When there has been this interference, when these sacrifices have been made, we shall have no assurance whatever that we shall have the articles we require in time of war, and we shall possibly be landed in a fool's paradise, waking up some day to discover that the things we thought we had secured for ourselves are not with us at all. This Bill has been so riddled with criticism it has disclosed such divisions in the ranks of those who are supposed to support the Government and its policy, that once the Bill has been passed the Government will be only too glad to let the whole matter be forgotten. It may become notorious that the Bill is not having the effect anticipated, and there will be a demand to increase the duties or to strengthen the provisions of the Measure. Then the Government will be only too glad to be rid of such a sore subject. Therefore, I repeat, we shall land ourselves in a fool's paradise, having injured our trade to no purpose, and leaving ourselves after all without the things of which we are supposed to be in great national need.
The complaint on this side is, in so far as optical glass is included in the Schedule, that it must inevitably happen that the Government will feel that they are protecting the optical glass industry, whereas should occasion again arise we shall still find we are lacking the instruments needed for offensive and defensive war. I should like the Parliamentary Secretary when he comes to reply, and he has rather a weakness, it seems to me, in replying, of saying he is unable to follow the arguments adduced on this side—
The arguments are all put clearly, but they are somewhat bad arguments.
Let me put this question. Will the hon. Gentleman tell us how it is that by the inclusion of optical glass in this Schedule he is able to give the nation am assurance that optical glass will be available if need should arise. First of all, it is perfectly obvious that this tariff will not do it. Messrs. Chance Bros., of Smethwick, in the last year of the War manufactured enough optical glass in one year GO supply the whole world's needs for three years, and they are now shut down owing to German competition.
Only that Department.
German optical glass at the present time is made in factories where they have had generations of experience, and there could hardly be better glass produced. But take the cost of manufacturing in Messrs. Chance Bros.' factory, and it is perfectly obvious that no duty of 33⅓ per cent., nor even an ad valorem duty of 100 per cent., would enable the British manufacturer to compete with German glass of this nature. Will the Government say how it is by putting optical glass in this Schedule we shall be put in the position of manufacturing that optical glass as we need it if and when war breaks out? Again, is it true that only 50 tons of this optical glass is made in a year, and that the total value is only about £50,000, whereas the business in which the glass is used has an output of £30,000,000? Here we are risking, and risking very seriously, our share in the world's business in the employment of this Optical glass by putting an artificial duty which will certainly not be enough tinder this Schedule to protect our British manufacturers in an industrial sense, and at the same time we are hampering our industries by increasing the cost of the British manufactures to foreign nations—of such manufactures, for instance, as cameras and spectacles. All these things will have their cost of manufacture increased, and it seems to me that that is an extraordinary thing to be done in a Measure which is called the Safeguarding of Industries Bill.
This is not going to safeguard a single industry of the industries established here during the War, so far as I can see. Most of those businesses were built up by generous loans from the Government, they were protected by the exigencies of the War, and they flourished wonderfully; but they cannot stand the solid test of world competition in time of peace; so no businesses are being safeguarded. If at the end of 12 months it should be found that the optical glass industry has not been sufficiently protected, will the Government consider the granting of a direct subsidy to some firm who shall be responsible to them for the production of sufficient optical glass for use in case of necessity due to war?
Let them produce it at Woolwich Arsenal.
I do not care where. Let them subsidise some particular firm, but let it be seen to that accompanying that subsidy there is an absolute requirement that the money shall be spent, not merely in production, which in times of peace is not so important, but in scientific research. The Member for the University of London (Sir P. Magnus) was holding forth yesterday about the needs of scientific research. I am sure it must be a lamentable reflection to him to realise that practically every scientific instrument in which there is the least bit of optical glass will be increased in its gross price, not merely by the increased cost of optical glass, but by the increased sum which will be demanded by the manufacturer on the whole article, even though the glass is a quite infinitesimal part of it. This is an attack upon scientific education, this is hampering scientific research, and it is not safeguarding us against the circumstances in which we found ourselves in 1914. It gives us no provision against war, it gives our industry no protection in peace, it is neither reasoned nor reasonable, and I should be glad if the Government would accept the Amendment.
I have no intention of repeating the arguments I used last night on the desirability of maintaining this duty upon optical glass, and instruments into which it enters, because I think I said enough to satisfy anyone that this duty is absolutely essential at the present time. The speeches to which we have just listened form the very best argument that could be used for the retention of this Clause. They freely admitted, which was not admitted before, that it was absolutely essential if we were to maintain the security of this country in the event, the remote event, let us hope, of a war taking place, that we should be able to provide ourselves with the optical glass which is an important part of the instruments used by all the three Services in war. What other means are suggested, other than those included in the Clause, by which the manufacture of this glass can be retained in this country?
By a subsidy.
It is suggested that it might be done by means of a subvention. I need hardly point out that the difference between a subvention and a tax such as is here proposed is that a subvention is paid by our own Government, and that in the other case the money is paid by the foreign Government. There is no doubt whatever that a subvention has to be paid by our own Government; in the other case, the case of a tax, it must be paid by the foreign producer. That cannot be gainsaid. Admitting, as we all now do, that it is absolutely necessary this industry should be protected, surely the best means of doing it is by the duty which is to be imposed. Both speakers have referred to the duty as a paltry duty. I do not think 33⅓ per cent. of the cost price can be regarded as a very paltry duty. It means a very large increase on the cost, and would considerably help manufacturers in this country in their competition with Germany, or any other country. I think both speakers, and certainly the Mover of the Resolution, stated that the members of some learned society, the name of which was not given, had pointed out that you could not produce these articles of the same quality or in the same quantity as they are produced abroad. I should like to tell him that we can produce in this country articles of the same quality as are produced abroad. The only reason why our factories must cease to exist unless something is done to safeguard the industry is because we cannot produce the things at the same price. That is the only reason. We can produce optical glass of the same quality, we can produce instruments of the same quality—in every respect as good—as those manufactured abroad, but we cannot produce them at anything like the same price. Why is that? It is because that great industry in Jena has been organised for a great many years and is carried on under conditions which have hitherto not existed in this country.
In 1915, when I spoke on this subject from the benches opposite, I discovered that the Germans were taking every subtle means that could be indicated, every method that could be suggested, for preventing this glass being manufactured in this country. They had an agency in London, at Mill Hill, and I was asked by the Board of Trade, of which Mr. Runciman was President at the time, to go down to Mill Hill, to see what was being done there, and to report to the Government whether that agency could be closed. I went down and made a long report to the Board of Trade. The result was that that particular agency was closed, was handed over to an English firm. We have overcome the German efforts in this country from doing the great evil which they were doing to our industry in preventing it being organised for development. It is quite true, as has been stated, that the amount of optical glass required to be produced is very small, compared with the value of the instruments into which it enters, but the fact that the optical glass was essential to the production of those instruments prevented them being produced, and prevented the trade from being carried on in this country. I do not attach the slightest value to the arguments used by the Mover that these instruments cannot be obtained by our universities. They can be obtained, although they may have to pay a higher price, but the additional cost to any research laboratory of paying a little more for the costly instruments which they require is a fraction, a very small thing, compared with the absolute necessity of our being able to produce these instruments in this country in the event of war. It is a tax which we all readily pay for security. That tax would not be paid by the schools or colleges or research laboratories, it would be paid by the Treasury, who would give them sufficient grants to enable them to make the purchases. In other words, it would be paid, through the Treasury, by the whole of the taxable people of this country; and surely the taxable people of this country would not object to the small fractional additional tax that would have to be imposed upon them in order that the Treasury might be able to provide these instruments for the laboratories in our universities and colleges.
It is essential, if this industry is to be built up in this country, that something should be done. I admit that the proposal to add a duty of 33⅓ per cent. is an experiment. It will not not make a very great difference in the price of the goods, but it will be a great encouragement to our manufacturers to put their shoulder to the wheel and do all that they possibly can to compete with foreign countries. We have in this country no lack of scientific men capable of giving the same assistance to our manufacturers here as has been given for years past to the manufacturers in Germany. They have been able to undersell us on account of the gigantic character of their business, which includes, not only optical glass, but a great variety of other glass. They have been able, as it were, to dump their optical glass into this country by charging a higher price for other goods. We want to prevent that. We want to be certain that we can supply to our people in this country, even at an increased price, as I grant it will be, goods of the same quality as those which have been supplied for many years from Germany.
It is lamentable that an industry of that kind, so absolutely essential in times of war and so generally required in times of peace, should be lost to this country. We ought to be ashamed of it. We ought to take every step we possibly can to prevent it, and the step we are taking will, as far as I have been able to gather from inquiries I have made, be a very strong incentive to our great firms in this country to do what they can to produce these goods. As I have said, it is not at all a question of the quality. The quality can be produced. It is not at all a question of the scientific men; we have the scien- tific men. But, as I said last night, what is the use of training scientific men to give their advice and assistance in the manufacture of these instruments if there are no factories in which they can be employed? It is mere waste of effort. We want a close relationship between the factory and the laboratory, between the factory and our universities and colleges. The industrial and commercial part must go side by side with the scientific part. That can only be arrived at by giving the encouragement which, I believe, will be given to the manufacturers by this duty, so that they may be able to compete with German manufacturers at a price something less than 33⅓ per cent. above his. That will enable them to persevere in the work which they have already undertaken in various parts of the country, and to produce for us these goods which will be equally serviceable in times of peace and in times of war.
The extremely interesting speech to which we have just listened left out of account entirely a very vital part of the arguments that had been previously used. If the hon. Baronet the Member for London University (Sir P. Magnus) had told us in what way we had a guarantee that this duty would give us what we want, if he had explained how the duty would bring the laboratory and the factory together, if he had shown us that these things could be done by this Bill, we might have voted for this Clause instead of against it. But what is there in the Bill from end to end that will in any way make the employer continue his research work? What is there that will make him become efficient?
He is already efficient.
Then why is there any need for the Bill?
Because of the price.
Then we have efficient manufacturers, and their only inefficiency is that they are not efficient enough to manage at the price. That is the position of affairs. I am sure there is not a Member in the House who would be opposed to any reasonable Measure that would guarantee the country's safety, but what are we asked to do under this Clause? We are asked to say that, be- cause the Government may need a certain number of theodolites, every surveyor who uses a theodolite from abroad must pay a duty of 33⅓ per cent. Every person who wears a pair of spectacles, the glass of which is made abroad, must pay—[ Interruption ]. I hope that, if I have to be interrupted, I may be interrupted by one hon. Member at a time. I do not mind dealing with one interruption at a time, but I cannot possibly deal with a number. My position is quite plain and distinct. If it be necessary that we should be safeguarded against a deficiency of optical instruments of any kind that may be needed in war, let the nation make its own optical instruments, and let the rest of the optical instruments that are not required for the country's safety be dealt with in the ordinary way of trade. I again urge that there is nothing in this 33⅓ per cent. that will lead to efficiency on the part of a manufacturer of these articles. Rather is it that the lack of spur will tend to make the manufacturer relax, because he feels that within the limits of that duty he is perfectly safe, and does not need to develop his industry on perfectly sound lines.
I speak with some degree of knowledge of English workmen in more than one trade. I have seen workmen in many countries on the Continent of Europe engaged in trade of which I have knowledge, and I believe that the English workman, given the same efficiency on the part of his employer, can compete in most things with any workman in the world. What is needed is a close understanding between worker and employer, and a desire to make the best of things. In my opinion that will never be given by these duties. If I thought that the Bill would really mean definite scientific research, definite scientific development of industry, a definite movement towards that efficiency in which every atom of energy would be used to the best effect, I would vote for the Bill. But I see nothing in it that will do anything of that kind. Rather do I see that the Government says, "We found a danger during the War because we had not sufficient optical instruments. We will not take precautions to see that the country has a sufficient supply of these things manufactured by itself in the future, but we will leave the whole thing to chance, and with a duty of 33 per cent. we hope that things will become better." [ Interruption. ] May I again explain, that I suggested at the outset that when the country needs a thing vitally it ought to manufacture it for itself, and if it has not sunk in, I repeat it a third time. In case a country has a vital necessity, it should provide for it itself. Now I hope I am understood. The position is perfectly plain. This Clause gives no guarantee that the goods will be made in this country. We get the probability of it, but no certainty. I want to replace uncertainty by certainty. I want to help our own people to manufacture for themselves the things they vitally need—not to leave it to private enterprise, but deliberately to manufacture what we require in order that we may be definitely certain that if the time ever comes when we need the articles that are spoken of, they will be provided. I object to everybody who uses these things being taxed because it is alleged that the Government has, or may have, under certain possibilities, a necessity for a certain number of the articles. That is the position, as I see it, in a nutshell. In spite of the great interest of the speech of the hon. Baronet the Member for London University, not one word of that speech was convincing to the effect that the Clause would get the goods manufactured in this country and would give us any guarantee, either in quantity or in quality, that we shall be safe in the event of another war.
I am really amazed at the arguments which have been, adduced by the hon. Gentleman. The hon. Member who moved the Amendment has indeed forgotten most of the lessons of the War—memories are short—but the hon. Member for Preston (Mr. T. Shaw) has forgotten not only every lesson of the War, but every lesson of the peace, because how is he going to give us cheap production? By setting up national factories all over the country. I hardly think, from what we have been told of the need of getting rid of State control, that the best way to get cheap or efficient production is to set up national factories. Thirty-three and one-third per cent. simply would not be in it if we were going to set up national factories. The result would be that we should be adding not 33⅓ per cent., but 133⅓ per cent. to the price, and I very much doubt whether we should have anything efficient when we arrived at the end of it. In the last two years if we have learnt anything it is that the more scientific the research that is necessary, the more you want to leave it to private enterprise.
Produce them on the same basis on which we produce our guns.
Would the hon. Gentleman be prepared to make Woolwich Arsenal a limited company?
It is a little late to go back on that, but I would invite the hon. Member to compare the efficiency and output at Woolwich Arsenal with the efficiency and output at any modern private factory. I should certainly hesitate a long time before I put my money on Woolwich Arsenal as an efficient producer against the private factory. The other argument which has been adduced by the hon. Member is that the duty is too low. How does he know? I cannot follow hon. Members opposite. They only unite on one point, and that is in going into the same Lobby. I have listened to the hon. and gallant Member for Leith (Captain W. Benn), and all the other hon. Members with equal voice but with less versatility, shouting out that it is a perfect scandal that we are going to put on a duty of 33⅓ per cent., and that never in the whole history of the House have we been asked to put on such duties. Now the hon. Member for Consett (Mr. A. Williams) says the duty is not high enough.
I certainly said it was a paltry duty, because I believe it to be absolutely inefficient for the purpose for which it is put on.
If it is inadequate for the purpose, surely that is as much as to say it is not sufficiently great.
I said it ought not to be done by a duty at all.
I appreciate that, but how did the hon. Member say it should be done? He said, "All you want is for the Government to give its orders to a few of these firms." I thought he was a pacifist. Has he any conception how much all the Government orders for optical glass and instruments are likely to come to in normal peace times? They are not likely to keep a fraction of a firm going.
Can you not lay in stocks as you do with machine guns?
What is pressed on us is that we must make progress and keep up to date. Who will be the first to criticise if we lay down large stocks now?
You do it with machine guns.
Of course we have a stock of machine guns, because we have just finished a war; but certainly it would be extremely bad policy to buy a very large number of machine guns of the present standard without considering whether there might not be a great improvement next year. Really, the hon. Member's suggestion is quite extraordinary.
I made that argument in my speech.
I really apologise to the hon. Member. I thought his speech was made to reach some conclusion; but if each second sentence was destructive of the arguments which he advanced in the first—
That is like the Coalition Government.
Then perhaps the hon. Member will come over and vote for us in the Lobby. Another argument which was advanced was that this is a challenge to America. If you do this America may do it. If the hon. Member studies the American tariff he will find that America already puts a duty on every one of the articles which he is moving to leave out. Then an hon. Member asks, What assurance can we give that if we pass this we shall get production of the goods? I might not inappropriately retort by asking, What assurance can you give me that if we do not pass it we shall get anything? I can give this assurance, that if this Bill does not go through with this measure of protection we shall not get any optical instruments in this country at all. Of course I cannot promise an absolute certainty. If the hon. Member, who is more interested in importing goods than in maintaining our own industries, follows what is happening in the factories of the country he would know with what great difficulty these factories have been kept going and that factories manufacturing optical glass have only been kept on in the faith that this Bill was going to be carried.
I am the chairman of a large factory employing a large amount of labour. Why does the hon. Gentleman refer to me as an importer?
The hon. Member certainly shows more interest in the importation of goods from other countries, judging by his speeches.
I get my raw material from other countries.
The hon. Member is the most altruistic speaker I have yet come across, ad I honour him for it; but if only he was the chairman of a company manufacturing optical glass or optical instruments he would know that he had great difficulty in carrying on, and that he was only carrying on on the faith of the promise of this Measure, the performance of which I commend to the House.
Chance's have carried on for 100 years.
What is the position to-day? I am not at all sure whether Chance's works are open or not, but I know that one factory, in the certainty that this Bill was going through, and knowing that this Measure of protection was coming, has reorganised itself and is going forward. The other argument advanced, and it is an amazing one, is that all that you want is research. The hon. Member for Preston said that what we want is not this protection of manufacture in this country, but research.
May I appeal to the hon. Gentleman to quote correctly? It does not matter once or twice to be quoted incorrectly, but three times is too much.
I am sorry if I have misunderstood the hon. Member. What he said was: "The need is research. There is no research in this Bill. What you want in this scientific production is research." That is exactly what I want, but how are you going to get that re- search? Not by isolating a number of chemists in a cloister. The only way is by making an industry which in peace time is going to produce this product, and in war time is going to produce eyes for your Navy, Army, and Air Service a self-contained and efficient industry, by giving it a commercial life and a commercial future, and then you will make certain that you get the only research which is going to be worth while in an industry of that kind.
10.0 P.M.
The Minister has twitted us on having forgotten the lessons of the War and the lessons of the peace. There is one lesson which he has forgotten, and that is, that during the War we suffered from high prices due to a ring system of defence which kept out imports of foreign goods and sent up prices in this country far higher than had ever been known in our history. It seems to us who object to this ring fence being continued by means of a tariff system, and the high prices that result, that we, at any rate, have not lost sight entirely of the lessons of the War which, apparently, he seems to have forgotten. In reply to the hon. Member who moved this Amendment, he said that it was an absurd thing to suggest that we should manufacture these goods in our own Government factories, or that we should give orders to a private factory, because the whole of the Government orders would not keep one small portion of a factory going for more than a few weeks. That is our point entirely, that the total requirements for the Government's purposes are so small, as compared with the total needs of the country, that it is worse than folly to put on a tariff to get this small proportion of goods at the expense of a tariff on the larger quantity that are used in general commercial enterprise. It is a mistake and an economical folly to protect any small part at the expense of the larger part, and that in order to secure your needs for Government purposes, which the Minister says are so very small, you should put on a tariff of 33⅓ per cent. on the other manufactures of this country, and putting a burden on the whole country which it has no right to bear. If you require insurance against risk of war, let the whole country pay for it, but do not burden other classes of manufacture which happen to need the same sort of instrument that the Government wants. Because of the lesson of the War, with its high prices brought about by a tariff, and the fact that the total needs of the Government are so small that they could only keep one small works going for a short time, it is folly to put on this tariff on the rest of the industries of the country.
One argument used by the hon. Member for the London University (Sir P. Magnus), which he used last night and repeated again to-night, shocked and pained me, coming from such a source. He used the argument, "What is the use of research unless there is money to be made out of it?" If one of us, who represent purely commercial constituencies had put forward a proposition of that sort it might be right, but for the representative of an university to suggest that the only value of knowledge is when it is applied to making money seems to me not only improper, but—
I said nothing of the kind. What I said was, What is the use of training chemists to give their advice and assistance in the manufacture of these optical goods if there is no factory in which they can be employed?
I beg the hon. Member's pardon. I did not understand him to say that. The Secretary for the Overseas Trade Department said that I had actually cheered a Member of the Labour party who suggested that these scientific instruments would be better made in a Government factory than by private enterprise. I repudiate that entirely. I know something about Woolwich Arsenal, and I know something about the extreme expense and the extremely unsatisfactory character of the products made in most Government factories, and I do not want the House to think that I should agree with such a proposition. Looking at this part of the Bill from the point of view of a possible future war, and from the point of view of one who might have to take part in that war, I do regard this Schedule as a very dangerous thing. The real point about scientific instruments for use in war time, particularly range finders, theodolites, and other instruments of that sort, is that we should be in a position to get the very best and the most modern and highly developed types of these instruments that it is possible to secure throughout the world. What does this Bill do? It makes it easy for an English manufacturer of these particular instruments, and this particular form of glass, to turn out successfully, from the commercial point of view, an inferior article.
Speaking as a manufacturer myself, perhaps I may be allowed to allude to a case which is before me at the present time. I have to compete against American manufacturers of certain machinery. Owing to the present value of the dollar, as compared with the pound sterling, I get a duty in my favour on the imports of American machinery into this country of something approaching the 33⅓ per cent., which is mentioned in this Bill. What is the result? So long as the exchange gives me that advantage, I have not the faintest intention of improving my products in any way what-soever. My unfortunate customers in this country, so long as I have that protective tariff, will have to put up with what I choose to give them. When the sterling exchange appreciates, as compared with the dollar, when I have no advantage owing to the rate of exchange against my American competitors, then, and not until then, I will take the trouble to improve my manufactures, until they will be superior to those of my American rivals. It is inevitable, under any form of tariff in any form of manufacture, that the quality of the manufacture in the protected country becomes worse than the quality in the unprotected country.
We know that that is so in the case of these very instruments which are mainly in the first few lines of this Schedule, and that if the seller of theodolites or other scientific instruments mentioned in the Schedule can declare and certify that the goods that he sells are of British manufacture, he can charge a higher price than if he has to admit that they are of foreign or German manufacture. It is a natural process. If any Member will look through the catalogue of any house dealing with scientific or optical instruments he will find that wherever it is possible to say that they are of British manufacture, that would be printed against the illustration and against the price of the instruments themselves, because they are better instruments, the reason being that hitherto we have had to compete against foreign manufacurers, and, as we had no protection in order to keep our industry going, we have had to make a better article than the foreign manufacturers were making.
But in this particular Amendment I must appeal to Members of the Labour party to consider the position. I have not the least doubt that they have all decided on this Amendment to vote against the Government proposal to put on a duty of 33⅓ per cent. in respect of these particular articles. I do hope that at least they will consider where they are being led by their support of the remnants of the Liberal party. If they will consider the problem for a moment I think they must agree with me that the real difficulty, and the real reason why the Government introduced this Measure, is that we are not able to compete with the foreign manufacturer on equal terms in certain directions at present. It has been admitted from the other side of the House, and it has been impressed on us from this side, that we cannot manufacture certain articles which are necessary in time of war, and are included in this Schedule, on a competitive basis as against Germany and other foreign nations. The reason is that it is impossible to manufacture them as cheaply as other people can manufacture them if you are paying three times the wages and your men are doing half the work. That is quite true. This Bill as attempting to deal with a situation which is purely temporary, which will be over, I venture to suggest, long before this Bill expires in the ordinary course.
Just at the moment we are re-adjusting our ideas of what we can afford in the way of carrying on industry, and re-adjusting them under the pressure of very hard, unpleasant facts. Therefore, the basis of the policy of the Labour party in the present situation of the labour market in this country is at least extremely injudicious. It is certain that ultimately the workers in this country will have to come down to something approximating the standard of living obtaining at present among the workers of Germany and other countries—[HON. MEMBERS: "China!"]—and no dodges or devices of the Labour party can ever save them from this fact. It is absurd to put on a duty of 33⅓ per cent. to protect industries which have to be developed, with labour in this country costing perhaps four or five or six times as much as the labour utilised in that industry in other countries. Therefore, I do appeal to the Labour party to reconsider their position in reference to this Bill. It would be better if their policy were logical and if they said that they would be willing to vote for Protection; for if they want to retain minimum wages and maximum hours of work and all that beautiful prospect of heaven and earth for which the Labour party have stood, it is essential, in the first instance, that they should have a system of the very highest Protection which is possible.
I have listened with great interest to the speech of my hon. Friend (Mr. Hopkinson), and it amazes me to hear that even with the natural protection which the present rates of exchange with America give to anyone in business, he does not see any necessity for improving his business or keeping it up to date, and is prepared to rely on that artificial condition which has arisen until other circumstances arise and he is knocked out. I thought that my hon. Friend was a man of great business ability and had established a position in this House as a manufacturer with the best business arrangements, but after the speech which he has made, I think that he has forfeited that position, because my feeling is that if other business men treated the exchange, and the benefit which it gives them in regard to America, as a position on which they could rely, and never attempt to improve their plant or better their conditions of working, they will go under sooner or later, and will deservedly go under. But the Amendment before the House deals with optical glass and those articles which we have obtained from Germany. The proposal is to put on a duty of 33⅓ per cent. so as to preserve them as a key industry. That duty is not anything like enough to counteract the German collapsed exchange. It is not really a measure of protection. It is a mere trifle.
The Germans are able to send their goods here at at least one-third of our cost, and if we are going to have an efficient measure of protection we must put it on a very much higher level than what is proposed in this Bill, but that is no reason for opposing the adoption of the 33⅓ pea cent. It is all very well as far as it goes. Then there will be a little addition to that, due to the collapsed exchanges. Then there will probably be a trifle under the export duty from Germany, and there may be various other incidentals which will help us to build up an industry which we sorely need in the country, and which deserves to be kept on its feet, because nothing would be more disastrous than if we allowed this industry which we had built up through all the difficulties and troubles of the War to go down now. Some hon. Members think that the great War was the last war. We all devoutly hope that it will be the last War, but we are not at all sure about it. We see prospects of difficulty and trouble arising all over the world. In these circumstances it is very necessary that we should preserve and foster an industry which was found indispensable in the stress of the late War. I would have liked to have seen these key industries put on an altogether stronger and higher basis. We have to be thankful that the Government recognise that they are important industries, and it would be a matter of deep regret if we ignored the recommendation given to us by the Government that these industries should be supported.
The interest which has been expressed by some hon. Members opposite, I think for the first time, in this Bill to protect, for the purpose of war, these necessary key industries, puts rather a different complexion on this Debate. I can only hope that if this paltry duty of 33⅓ per cent. should turn out to be insufficient, and if this Bill is not sufficient to protect vital key industries, and if the Government comes forward, as I believe it will then do, to propose still further assistance—I hope we shall have the help of hon. Members opposite in making this protection really effective. The arguments used in favour of this Amendment, as to subsidies, as to getting the Government to make these things, are all entirely beside the point and do not seem to recognise the true inwardness of the thing or what is really wanted, which is that we should have, not a supply of things which will get out of date, but a really live industry which will be able to produce these things when the occasion arises. Hon. Members opposite have spoken of guns, and the ques- tion has been asked why we do not deal with those things in the same way. We are doing so. In times of peace we do not want to make guns or rangefinders, but in times of peace we want to keep our steel industry effective so that we can make guns when the need arises. That we are proposing to do under the Bill. In times of peace we want to keep the optical glass industry generally alive and strong, so that we can produce range-finders and implements of war when war-time comes. You cannot do those things by any system of subsidy or by setting up Government factories.
Let me say something on the question of education, of scientific research, and the lament from the other side that we are adding to the cost of that work. It is necessary, for the purposes of scientific research, that we should be able to depend upon ourselves and not be dependent on foreign countries. If in the future we are to have no such war as we have had in the past, we may yet be faced with a more modern kind of warfare, entirely a commercial war. If Germany or any other country is able to control the manufacture of optical glass, what is to prevent that country taking steps, in order to give it commercial supremacy and supremacy in research, suddenly to stop the export of those goods to this country? It is as important, from the point of view of science and education, as it is for the purposes of war, that we should be able to produce these things for ourselves.
An industry very nearly allied to this—the chemical glassware industry—is already prepared to do a great deal for the benefit of education and research work, such as has never been done for us and is never likely to be done for us, by the Germans. They are prepared to produce, or are producing, a particular type of glassware, a sort of second grade, to be used for those purposes in connection with which a second grade, is good enough, and in carrying out educational and experimental work. This can be turned out practically as a by-product, at very little cost, if only they can get trade and industry built up in what may be called the main product—the first grade article It is by establishing the industry in this country, and having it under our control, that we can best serve educational and scientific purposes, and supply what is quite good enough, at a price very much cheaper than that which we have to pay at present for the only class of goods we can get from abroad, which is of no use to us. Either the Mover or Seconder of the Amendment spoke strongly about his anxiety to protect these things for the purposes of war. I suggest, if that anxiety really exists, the course which hon. Members ought to adopt is not to strike this out from the Bill, but to keep it in, with a view to urging on the Government in the future, if it should prove to be necessary, to strengthen the assistance which is now given. Unless they adopt that course, I am afraid it is difficult to believe that these professions of anxiety for the protection of key industries are as genuine as the hon. Member's devotion to their old, out of date, Free Trade principles.
I do not think either the Mover of the Amendment or any other Member on this side of the House will worry very much whether the hon. Member believes we are in earnest about protecting these key industriess or not. He is welcome to any philosophic doubts he may entertain upon that question, but I cannot understand his own fetish, his faith in the statements made by him in the earlier Debates as to there being such a dearth of optical glass and such an incapacity on the part of this country to produce it in the beginning of the War, as to make it necessary that optical glass should be taxed if we were to be prepared for the next war. We were short of many other things at the beginning of the War besides optical glass. Nobody denies that. The fact that we had an appeal made for field glasses during the War shows how short we were in that respect, and we were short of almost every other commodity. We were short of men, as Lord Kitchener pointed out in his appeal to the country. We were short of food and had to be rationed. Yet you do not include food in the provisions of this Bill. I appeal from Phillip—no, I had rather say I appeal from the persons who make these statements, to the optical glass manufacturers themselves. I have over and over again quoted the official opinion
of the optical glass makers in this country that they were perfectly capable and proved themselves capable of meeting all the requirements of the Army and Navy during the War; though certainly not at the beginning of the War.
May I interrupt the hon. Gentleman? Do I understand him to say—
I think my hon. Friend heard what I said. I will read an official statement on behalf of the makers of optical glass in this country—
"The advent of the War found the optical industry of Great Britain in such a healthy state of activity that within a short space of time it increased to the extent necessary to equip a new Army of 5,000,000 men."
What other industry in the country can boast of an achievement of that kind? Yet you select this particular industry for special protection, and you charge every man who buys a microscope and every old woman who buys a pair of glasses a special tax in order that you should be prepared for the next war. My hon. Friend opposite has a partial acquaintance with the optical glass trade, but I have quoted an official document of the whole trade.
What is the book from which you quoted?
It is a "Dictionary of British Scientific Industries," issued by the British Optical Instrument Manufacturers' Association, and if that is not an official judgment upon the question as to whether optical glass is or is not a subject for special preference and protection among the industries of this country, I do not know what kind of evidence my hon. Friend does want. He thinks there is a case for protecting the manufacture of optical glass, but I appeal to him to have some respect for the considered judgment of the manufacturers themselves, and if he does so he will vote for this Amendment.
Question put, "That the words proposed to be left out stand part of the Bill."
The House divided: Ayes, 170; Noes, 61.
Division No. 346.] AYES. [10.30 p.m. Adair, Rear-Admiral Thomas B. S. Bagley, Captain E. Ashton Barlow, Sir Montague Allen, Lieut.-Col. Sir William James Baird, Sir John Lawrence Barnett, Major Richard W. Amery, Leopold C. M. S. Baldwin, Rt. Hon. Stanley Barnston, Major Harry Armstrong, Henry Bruce Balfour, George (Hampstead) Bell, Lieut.-Col. W. c. H. (Devizes) Atkey, A. R. Banbury, Rt. Hon. Sir Frederick G. Bellairs, Commander Carlyon W.
Batterton, Henry B. Hacking, Captain Douglas H. Nicholl, Commander Sir Edward Bigland, Alfred Hall, Lieut.-Col. Sir F. (Dulwich) Norris, Colonel Sir Henry G. Bird, Sir A. (Wolverhampton, West) Harmsworth, C. B. (Bedford, Luton) Parker, James Blades, Sir George Rowland Herbert, Dennis (Hertford, Watford) Parry, Lieut.-Colonel Thomas Henry Blair, Sir Reginald Higham, Charles Frederick Pearce, Sir William Borwick, Major G. O. Hilder, Lieut.-Colonel Frank Pease, Rt. Hon. Herbert Pike Boscawen, Rt. Hon. Sir A. Griffith- Holbrook, Sir Arthur Richard Peel, Col. Hon. S. (Uxbridge, Mddx.) Bowyer, Captain G. W. E. Hood, Joseph Perkins, Walter Frank Breese, Major Charles E. Hopkins, John W. W. Pratt, John William Brown, T. W. (Down, North) Hunter, General Sir A. (Lancaster) Prescott, Major W. H. Bruton, Sir James Jackson, Lieut.-Colonel Hon. F. S. Randies, Sir John Scurrah Buckley, Lieut. Colonel A. Jameson, John Gordon Raw, Lieutenant-Colonel Dr. N. Burn, Col. C. R. (Devon, Torquay) Jodrell, Neville Paul Rawlinson, John Frederick Peel Burn, T. H. (Belfast, St. Anne's) Johnson, Sir Stanley Rees, Sir J. D. (Nottingham, East) Campbell, J. G. D. Jones, G. W. H. (Stoke Newington) Richardson, Alexander (Gravesend) Casey, T. W. Jones, J. T. (Carmarthen, Llanelly) Roberts, Rt. Hon. G. H. (Norwich) Chamberlain, Rt. Hn. J. A. (Birm. W.) Kellaway, Rt. Hon. Fredk. George Roberts, Samuel (Hereford, Hereford) Chamberlain, N. (Birm., Ladywood) Kerr-Smiley, Major Peter Kerr Roberts, Sir S. (Sheffield, Ecclesall) Churchman, Sir Arthur King, Captain Henry Douglas Rodger, A. K. Clay, Lieut.-Colonel H. H. Spender Kinloch-Cooke, Sir Clement Rothschild, Lionel de Clough, Sir Robert Law, Alfred J. (Rochdale) Roundel), Colonel R. F. Coote, Colin Reith (Isle of Ely) Lindsay, William Arthur Royds, Lieut.-Colonel Edmund Cory, Sir J. H. (Cardiff, South) Lister, Sir R. Ashton Samuel, A. M. (Surrey, Farnham) Dalziel, Sir D. (Lambeth, Brixton) Lloyd-Greame, Sir P. Samuel, Samuel (W'dsworth, Putney) Davidson, J.C. C. (Hemel Hempstead) Locker-Lampson, G. (Wood Green) Sanders, Colonel Sir Robert Arthur Davidson, Major-General Sir J. H. Locker-Lampson, Com. O. (H'tingd'n) Sassoon, Sir Philip Albert Gustave D. Davies, Thomas (Cirencester) Lort-Williams, J. Seager, Sir William Denniss, Edmund R. B. (Oldham) Lowe, Sir Francis William Shortt, Rt. Hon. E. (N'castle-on-T.) Doyle, N. Grattan Lowther, Col. Claude (Lancaster) Sprot, Colonel Sir Alexander Du Pre, Colonel William Baring Lowther, Maj.-Gen. Sir C. (Penrith) Stanler, Captain Sir Beville Elvedon, Viscount M'Connell, Thomas Edward Stanley, Major Hon. G. (Preston) Evans, Ernest McCurdy, Rt. Hon. Charles A. Stewart, Gershom Eyres-Monsell, Com. Bolton M. Mackinder, Sir H. J. (Camlachie) Sturrock, J. Leng Falle, Major Sir Bertram Godfray McLaren, Hon. H. D. (Leicester) Sugden, W. H. Fisher, Rt. Hon. Herbert A. L. Macnamara, Rt. Hon. Dr. T. J. Sutherland, Sir William Ford, Patrick Johnston Macpherson, Rt. Hon. James I. Taylor, J. Forrest, Walter Magnus, Sir Philip Terrell, George (Wilts, Chippenham) Foxcroft, Captain Charles Talbot Malone, Major P. B. (Tottenham, S.) Thomson, Sir W. Mitchell- (Maryhlll) Fraser, Major Sir Keith Manville, Edward Thorpe, Captain John Henry Gibbs, Colonel George Abraham Marriott, John Arthur Ransome Townley, Maximilian G. Gilbert, James Daniel Mason, Robert Tryon, Major George Clement Gilmour, Lieut.-Colonel Sir John Mitchell, Sir William Lane Walters, Rt. Hon. Sir John Tudor Goff, Sir R. Park Moles, Thomas Ward, Col. J. (Stoke-upon-Trent) Gould, James C. Molson, Major John Elsdale Willey, Lieut.-Colonel F. V. Goulding, Rt. Hon. Sir Edward A. Mond, Rt. Hon. Sir Alfred Moritz Wills, Lt.-Col. Sir Gilbert Alan H. Gray, Major Ernest (Accrington) Montagu, Rt. Hon. E. S. Wise, Frederick Green, Albert (Derby) Moore, Major-General Sir Newton J. Wood, Sir H. K. (Woolwich, West) Greene, Lt.-Col. sir W. (Hack'y, N.) Morden, Col. W. Grant Woolcock, William James U. Greenwood, William (Stockport) Morison, Rt. Hon. Thomas Brash Young, E. H. (Norwich) Greer, Harry Munro, Rt. Hon. Robert Gregory, Holman Murchison, C. K. TELLERS FOR THE AYES.— Greig, Colonel Sir James William Neal, Arthur Colonel Leslie Wilson and Mr. Guest, Capt. Rt. Hon. Frederick E. Newman, Sir R. H. S. D. L. (Exeter) Dudley Ward. NOES. Acland, Rt. Hon. Francis D. Hirst, G. H. Roberts, Frederick O. (W. Bromwich) Ainsworth, Captain Charles Hogge, James Myles Rose, Frank H. Armitage, Robert Irving, Dan Royce, William Stapleton Barker, G. (Monmouth, Abertillery) John, William (Rhondda, West) Sexton, James Barnes, Major H. (Newcastle, E.) Johnstone, Joseph Shaw, Thomas (Preston) Barton, Sir William (Oldham) Kennedy, Thomas Short, Alfred (Wednesbury) Bowerman, Rt. Hon. Charles W. Kenworthy, Lieut.-Commander J. M. Spoor, B. G. Clynes, Rt. Hon. John R. Kenyon, Barnet Thomas, Brig.-Gen. sir O. (Anglesey) Cowan, D. M. (Scottish Universities) Klley, James Daniel Thomas, Sir Robert J. (Wrexham) Edwards, C. (Monmouth, Bedwellty) Lawson, John James Thomson, T. (Middlesbrough, West) Edwards, G. (Norfolk, South) Lyle-Samuel, Alexander Waterson, A. E. Finney, Samuel Maclean, Rt. Hn. Sir D.(Midlothian) Wedgwood, Colonel Josiah C. Galbraith, Samuel MacVeagh, Jeremiah White, Charles F. (Derby, Western) Gillis, William Morgan, Major D. Watts Williams, Aneurin (Durham, Consett) Glanville, Harold James Mosley, Oswald Wilson, W. Tyson (Westhoughton) Graham, R. (Nelson and Colne) Murray, Hon. A. C. (Aberdeen) Wood, Major M. M. (Aberdeen, C.) Griffiths, T. (Monmouth, Pontypool) Murray, Dr. D. (Inverness & Ross) Young, Robert (Lancaster, Newton) Grundy, T. W. Myers, Thomas Guest, J. (York, W. R., Hemsworth) Newbould, Alfred Ernest TELLERS FOR THE NOES.— Halls, Walter O'Grady, James Mr. G. Thorne and Colonel Penry Hay ward, Evan Rattan, Peter Wilson Williams. Henderson, Rt. Hon. A. (Widnes) Richardson, R. (Houghton-le-Spring)
Bill to be Read the Third time To-morrow
Irish Railways (Settlement of Claims)
Resolution reported,
"That it is expedient to make provision for the payment, out of moneys to be provided by Parliament, of a sum of three million pounds in satisfaction of claims which might have been made by railway companies in Ireland for compensation under the Regulation of the Forces Act, 1871, or the Ministry of Transport Act, 1919, or otherwise arising out of, or in respect of, the possession by the Crown of the undertakings, railroads, or plant of such railway companies, or in the exercise of the powers conferred by those Acts, and for the distribution free of Income Tax of that sum and any interest thereon amongst the companies, and for the continuance of a Clause in the agreement between the Government and those companies, and for facilitating the settlement of questions of wages and conditions of employment in connection with such railways, and for purposes incidental to the matters aforesaid."
Resolution agreed to.
Bill ordered to be brought in upon the said Resolution by Mr. T. W. Brown, Colonel Sir Hamar Greenwood, and Mr. Hilton Young.
Irish Railways (Settlement of Claims) Bill,
"to provide for the payment of a lump sum in satisfaction of claims of Irish railway companies under an agreement with the Government and otherwise, for the distribution of such amongst the several companies, and the continuance of a Clause in the said agreement," presented accordingly, and read the First time; to be read a Second time To-morrow, and to be printed. [Bill 207.]
Duchy of Lancaster (Application of Capital Moneys) Bill
Considered in Committee, and reported, without Amendment.
Motion made, and Question proposed, "That the Bill be now read the Third time."
I have it in command from His Majesty to signify to the House that His Majesty, having been informed of the purport of the Duchy of Lancaster (Application of Capital Moneys) Bill, gives his consent, as far as His Majesty's interest is concerned, that the House may do therein as they shall think fit.
I have it further in command from His Royal Highness the Prince of Wales to signify to the House that His Royal Highness, having been informed of the purport of the Bill, gives his consent, as far as His Royal Highness's interest is concerned, that the House may do therein as they think fit.
Question put, and agreed to.
Bill read the Third time, and passed.
Education (Consolidation) BILL [Lords.]
Considered in Committee.
[Mr. JAMES HOPE in the Chair.]
With regard to the Amendments standing in the name of the right hon. Gentleman the Member for Camborne (Mr. Acland), I would point out that this Bill is to consolidate the Education Acts, and, if the purpose of the Amendments is to effect a change in the law, then the Amendments are outside the Title of the Bill. Possibly the right hon. Gentleman's intention may be to set forth in a clearer form the law as it at present obtains. Perhaps the right hon. Gentleman will explain this point.
My purpose is to do really more than you have suggested, that is, to prevent any change in the law being made in the Bill and to restore it to a form in which, without any question at all, there can be no change in the law. I am aware that no Amendment or modification in the law is in order in Bills of this kind. I am quite willing to be pulled up if, in the course of my argument, I am putting forward any change in the law.
If the right hon. Gentleman is going to move his Amendments, I must put the proceedings in Order by putting the Clauses.
CLAUSE 1.—(Central authority.)
Motion made, and Question proposed, "That the Clause stand part of the Bill."
I do not know whether it would be in Order now to ask a question. I want to ask whether this is really a consolidation Bill or whether it does not actually propose a change in the law. I understand that it does make changes. If that is so, we ought to have some explanation as to why a Bill of this kind is brought in.
I shall be happy to give the explanation which the right hon. Gentleman desires.
This is somewhat irregular. There is no Motion at the moment before the House.
I thought you had put the Question, "That the Clause stand part of the Bill."
Yes, I did. Perhaps the right hon. Baronet will put himself in order by moving to report Progress.
I beg to move, "That the Chairman do report Progress, and ask leave to sit again."
When this Bill was last before the House I pointed out that it was a Consolidating Bill, and that it had passed a very strict examination at the hands of a Joint Committee of both Houses, who had certified that it made no change in the law. I therefore assumed that the Bill would pass in the ordinary course as a Bill which consolidated the existing law and made no changes. My right hon. Friend the Member for Camborne (Mr. Acland) differs from the Joint Committee upon one point, and says that the form which they have adopted for this particular Clause does in fact make a slight change in the law.
Yes, and that is the only point.
Only one change in the law?
My right hon. Friend assumes that the Joint Committee, which contained a number of eminent lawyers, and gave great attention to this Bill, was in error on one slight matter.
And only one.
I take it that is my right hon. Friend's contention?
That is so.
I think the position is rather less simple than as my right hon. Friend has expressed it in his speech. Are not the facts these? That this Bill, which is certainly meant to be a Consolidation Bill, was referred, as is often the case with such Bills, to a Joint Committee of both Houses. That Committee in due course presented a Report which, I understand, was in the Vote Office three weeks ago. But it was a report of their proceedings, in which it appeared that, quite properly, they called evidence. The evidence which they called, in accordance with practice, should be at the disposal of Members of both Houses, but it is not yet printed, and it is not at at the disposal of hon. Members. I submit—and I do so in no spirit of unfriendliness towards consolidation—that when there are Consolidation Bills which are properly referred to a Committee of both Houses, it is vital and essential that the Report of the Joint Committee, together with the evidence which it considered, should be before both Houses of Parliament before they are called upon to ratify the decision of the Joint Committee. If that be done, it gives an opportunity to Members in either House to consider whether the Report of the Joint Committee is a Report borne out by the evidence tendered to it. Of course, in the vast majority of cases to the vast majority of decisions of such Joint Committees neither House of Parliament is likely to make objection, but the functions of either House of Parliament are abdicated and destroyed if they are to take without examination the Report of any Joint Committee, however authoritative, which has called evidence. The evidence should be printed and submitted to both Houses of Parliament and they should not be called upon to decide before they have the evidence before them. My right hon. Friend's attention has been called to one point in the Consolidation Bill, and fortified by legal opinion of some weight he wishes to raise a point of some importance. But it does not in the least follow that that is the only point in the most voluminous document running to many pages which can legitimately be raised. I think it is exceedingly desirable that Consolidation Bills should be referred to a Committee of both Houses, that the reports of such Committees should have the greatest weight attached to them, and, where such report is based on evidence, that the evidence should be printed and be within the access of any Member of Parliament.
I have not the least doubt that when the evidence is investigated by those Members who are familiar with the educational problem, and, maybe, have educational responsibilities, the vast bulk of the recommendations of the Joint Committee will be approved, but it by no means follows that all will, and I do in all courtesy enter the strongest protest against this House being asked in the middle of August, and on the eve of the Prorogation, to ratify the conclusions of any Joint Committee if the Report of that Committee is based on evidence which in the ordinary course should be submitted to the House of Commons, and which at the present moment has not been so submitted. The result of not proceeding with the Bill now would not be in any sense injurious to education. I hope I am not going too far in saying that all Members would like to see the law of education consolidated and codified. It would be a great convenience to administrators, but not so great a convenience that it could not wait a few months in order to be in accord with the only procedure which would give this House any control or power of effective criticism or comment on what has been done by the Committee. What would happen if this Bill did not become law in the next few days? The same Bill, with the authority of the same Joint Committee, would be re-presented to both Houses of Parliament at the beginning of next Session, and meanwhile the evidence would be at the disposal of Members of both Houses. If when that evidence has been considered there are few or any Amendments moved, then the result of this Joint Committee's admirable efforts would have the full weight of authority attached to them, and the Bill embodying those efforts would pass both Houses of Parliament within a very few weeks of the beginning of the Session. The educational year, as everybody knows, begins in September. We are now in the middle of August, and no education authorities (who are now occupied on recreation) would be in a position to assimilate the contents of the Bill before the beginning of the 'educational year. You would not be losing an educational year, you would not, in practice, be losing any benefit. On the other hand, it is, surely, of the greatest consequence that where a matter of this kind is referred to a Joint Committee of both Houses, there should be reserved for either House the power of intelligent and informed criticism, which can only be given when the evidence is available. It was not in the Vote Office last night, and it would be a caricature of Parliamentary procedure to say that that evidence is effectively at the disposal of Members within 24 hours of that. As that is the fact, I take advantage of this Motion to Report Progress earnestly to ask my right hon. Friend not to pass through this Bill at this time, but to trust to the bona fides of all Members interested in education, and see that the Bill is put forward at the beginning of next Session.
I cannot add anything to what has been said by my hon. and learned Friend the Member for Middleton and Prestwich (Sir R. Adkins), but it is a fact that the point with which I shall have to trouble the Committee, if the Debate proceeds and I am allowed to move my Amendment, is a very technical and difficult point, and it is vitally, important to the understanding of that point to know what the Joint Committee did actually think about it when they were considering it and receiving evidence about it. I do not know that, and the House does not know that. I have seen a chanee copy of the evidence, but I think I ought not to have seen it, because copies of evidence, until they are published, are regarded as very confidential. I cannot quote it. I can, perhaps, distantly refer to it, but it certainly, will not be, as I think this Committee will recognise, within its competence to say whether my point is good or bad unless it has before it the evidence which was given before the Joint Committee, and is able to know to what extent the Joint Committee really did consider the point. It is not referred to in their Report at all. No opinion upon it is given in the Report. It is dealt with only in the evidence taken by the Joint Committee, and without that evidence we shall really be unable to judge whether my point is good or not. Therefore, I think there is a great deal of weight in what has been said by my hon. and learned Friend.
I understand, Mr. Hope, that the final authority to decide whether this is in order or not is yourself as Chairman of Committees. I do not know whether this is the time to do so, but if it is, I should like to ask your ruling as to whether this Bill is in order, or whether it goes outside the scope of the Title. Incidentally, let me say that the President of the Board of Education himself has on the Paper Amendments to the Bill, and I would submit that that is primâfacie evidence, either that the Amendments themselves are out of order, or that the Bill is out of order. But the point upon which I more particularly rely is that Clause 173 of the Bill goes outside the scope of the Title, and for this reason. The wording of this Clause is taken more or less from the Act of 1918, which is not in itself a consolidating Act. This Clause 173 contains certain shifting provisions. It provides that
"This Act shall come into operation on the appointed day, and the appointed day shall be such day as the Board of Education may appoint, and different days may be appointed for different purposes and for different provisions of this Act, for different areas or parts of areas and for different persons or classes of persons."
This Bill would make these shifting provisions apply, not only to the provisions of the Act of 1918, but to all the preceding Acts and to all the preceding law, and in that sense it is an amendment of the present law, and therefore, I submit, goes outside the scope of the Bill and is out of order.
11.0 P.M.
On the point of Order. I wish to submit this point, which I think has not been taken in a Committee of the House before, or certainly not for many years, namely, that the last Question which you will put from the Chair will be, "That this be the Title of the Bill," and that and that it is perfecly open to any hon. Member to move an Amendment to the Title in order to bring the Title into consonance with any alterations that may have been made in the Bill during its passage through Committee. Otherwise, what is the use of putting from the Chair the Question, "That this be the Title of the Bill" unless the Committee has the undoubted right to alter the title? If the House did not possess that right it would be the idlest thing in the world to put the Question, "That the Title stand part," because it would be competent for any hon. Member to challenge a division, and if it could not be amended we should have the ridiculous result that a Bill could be passed without any title at all. For that reason I submit that it would be perfectly competent for the Minister to move, at the end of the Committee, to amend the Title.
Of course, it is not competent to amend the Title. The Question is "That this be the Title of the Bill." May I ask whether, over and over again in Committees, Amendments have not been ruled out of order because they go beyond the scope of the Title of the Bill. If the hon. Member's statement is right no Amendment ought to be ruled out of order because it is outside the scope of the Title, because you can alter the Title when you get to it. Therefore I suggest that the hon. Gentleman for once in his life is wrong on a point of procedure.
The right hon. Baronet has given so admirable a ruling on this matter that I have nothing to add to it. With regard to the first point that was taken, I think I must assume that a Bill that comes with the certificate of a Joint Committee of both Houses, to the effect that no change in the law is made, is in order. "I imagine that or the last Clause, which is a Clause as to the extent and commencement of the Bill, that is necessary in any Bill, whether consolidating or otherwise. The effect of that Clause would be that this document should be taken in future as the law on education as from a certain date rather than a number of disconnected statutes. With regard to the point that the Minister of Education wishes himself to amend the Clause, that I think must wait till we hear the explanation of the Minister when that Clause is reached, but on what is at present submitted to me I cannot rule that either the last or any other Clause is outside the ambit of the title.
I am very anxious to show all due consideration to the convenience of hon. Members, and I should not wish to press the Bill if there is a general feeling that it should not be proceeded with, but at the same time I would offer a few observations on the speech of my hon. and learned Friend and as regards which I have no complaint to make, with a view if possible to converting and leading him to the conclusion I myself have come to, that it would be in the general interest that the Bill should pass this Session. My hon. and learned Friend complained that copies of the evidence were not in the Vote Office. Where a Bill is founded upon the Report of a Select Committee it is desirable that the evidence on which that Report has been founded should be in the hands of hon. Members in order that they may consider it before they are asked to consider the Bill. But I think the evidence that is given before a Joint Select Committee on a Consolidation Bill stands rather in a different category. The witnesses, if they can be called witnesses, who appear before the Select Committee are witnesses not as to fact, but experts who give their opinion upon points of law. There is a certain amount of legal discussion, and the Joint Committee comes to a decision as to whether or not a particular Clause does or does not accurately represent the existing state of the law. Then the Select Committee certifies or does not certify that the Bill represents the existing state of the law. Therefore, it appears to me that the conversations which are held before a Joint Committee of this kind are less valuable as evidence to hon. Members of this House than would be the evidence given before a Committee which had to consider substantive facts. The Report of the Select Committee is, in this instance, an unusually detailed report. It mentions at considerable length all the vexed questions which were discussed by the Joint Select Committee.
It does not mention the one which my right hon. Friend has read.
Because on that point the Select Committee were unanimously against the point taken by my right hon. Friend.
Why?
I will explain later. This report has been in the hands of hon. Members, and has been available for the use of Parliament, since 9th July.
15th November.
On 7th July instructions were given that the evidence should be printed. I am not responsible for the printing of the evidence. The officers of the House, I believe, are responsible for the printing. I have taken every possible step to put the House in possession of all the relevant information. My hon. and learned Friend thinks there would be no difficulty in the postponement of this Bill. He thinks that the Bill could be postponed to another Session, and that the Joint Select Committee would not have to do its work over again. I assume that if the Bill is postponed to another Session, that will mean that it is to be postponed in order that fresh Amendments may be submitted, and I very much doubt whether this Joint Select Committee of very distinguished Members of both Houses, who have been examining this Bill ever since April, would care to take up the work again. I think you would have to have another Committee.
:I suggest that no fresh Committee need be appointed, but that the existing Joint Committee should be re-appointed pro formâ. It is not for the purpose necessarily of moving fresh Amendments, but for all Members of this House, and incidentally Members of the other House, to consider the Report in the light of the evidence upon which it is founded, and as a settlement of legal points the evidence, so far from being worthy to be described as my right hon. Friend has described it, is far more important than if it were evidence of simple fact.
I can only reply to that by saying that I have been in communication with the Chairman of the Joint Select Committee, who has had unequalled experience in consolidation, and he tells me that, in his belief, there has not been a case in 25 years in which a Consolidation Bill which has been passed by a Joint Select Committee, and has been certified by them, has been blocked. It would be very difficult to obtain the assistance of Joint Select Committees for the very laborious work of consolidating laws—work which brings very little credit and involves the minute collation of a very large number of Statutes, which has no value on the public platform, and which involves very considerable sacrifices—if it is to be treated in this way, and I submit, though I am not in the least desirous of pressing the matter if there is a general desire that it should be postponed, that we ought to take into account the extreme importance of not passing over the work which has been done very carefully by the Joint Select Committee. We have at present great pressure from the officials who have to adminster the law in the localities for this Consolidation Bill. The Bill has been acclaimed all over the country. There is a number of young officials entering the service of the Board of Education, and it is most desirable that they should have a ready means of knowing the law as it at present exists. There are consequently weighty reasons for giving an early passage to this Bill, but I will not press it, if it is not the general desire of the Committee.
Has the right hon. Gentleman any precedent in which a Joint Committee of both Houses, having based their Report on the reception of evidence, have had their Report endorsed without Debate, when the evidence has not been forthcoming to the House? If there is, it is a precedent which I think would demand discussion. That is the point. They thought it necessary, I have no doubt, to call evidence. If they did, the House should have that evidence before it endorses, as of course, the conclusions to which it came. I am grateful to my right hon. Friend for saying that he will not press this if there is any general feeling in the House against it. I am confident that there is no wish intentionally to hinder or postpone educational codification, but this House is not willing to abandon its right to consider evidence which" was thought indispensable to the proceedings and conclusions of the Joint Committee.
There was a Joint Committee sitting last Session on the Law of Property Bill, which is now before the House. The Bill based upon the Committee's Report went to the other House last Session. The Bill was not passed through this House, but it has been introduced again in the other House, and is now brought before this House, and the Joint Committee has not sat again.
If this Bill is dropped now it will have to be brought in as a fresh Bill next Session. That will entail one of two things: either the Bill will have to be reprinted and immense expense incurred in setting the type again, or the type will have to be kept standing for four or five months, which will mean an equal expense. In all the circumstances, and in the present mood, of the House, is it worth while to incur that expense merely for the sake of looking more minutely into one or two legal opinions?
On that argument, why have Bills printed at all? Centuries ago Bills were not printed, but were read by the Clerk at the Table. If we followed the hon. and gallant Member's ridiculous suggestion we could save money and we would certainly get through our business much more quickly.
I have not any wish to cast the slightest slur upon the work of this very distinguished Joint Committee, but I confess that I want to see the evidence on which the Committee's Report was foundefd. Still less do I desire in any way to retard the consolidation of the Education Acts. On the contrary, I am exceedingly anxious, in the interests of education, to see them consolidated. I must say, however, that I think my hon. and learned Friend (Sir R. Adkins) has made a case which is unanswerable, or at any rate a case which has not been answered. If the case is answerable I shall reserve my vote, but so far I have not heard the answer.
If I am rightly informed this Joint Committee was a legal Committee presided over by Lord Muir Mackenzie, and these legal questions were left to that Committee for settlement. It was merely a Bill to consolidate previous Acts. Now it is suggested that this House should go through all the evidence, which not one in 600 of us would understand. I understand that the order to print the evidence has been suspended. [HON. MEMBERS:"No, no!"] At any rate I am so informed. I cannot take "No, no!" from hon. Members who do not know the facts. I am informed, and I believe credibly informed, that that is so. There may have been one print of it; I cannot say.
Ask the Minister.
I am told it will be very great. In any case it will be a pure waste of time after setting up a committee of legal Members of both Houses of Parliament to settle this question, to say when they report to us, that we have to defer the whole matter because we have not got the evidence before us—evidence which scarcely a single Member of the House would read.
I regret the Committee has not allowed the Minister to get the Bill which he has introduced, because obviously it is a Bill that could not have done any harm to anybody, and it does not materially alter the Law. I am very glad to notice the new-born zeal of many hon. Members for economy. I have heard several eloquent speeches to-night about the terrible crime that would be committed if the House spent another £10 on printing. Yet some hon. Members gaily trooped into the Lobby to vote for hundreds of millions without a word of inquiry. I am very glad to see that they are becoming particular about the ten pound notes, and I hope in the course of time, they will become equally particular about the hundreds of millions.
I think to leave the matter as it is now would be very unsatisfactory. The Minister has been good enough to say that he does not propose to proceed with this Bill if it is opposed to the sense of the Committee. By that I hope he does not mean that he is going to take a Division, and put on the party Whips. This Motion should not be withdrawn, without some indication from him as to what he believes the sense of the Committee to be. For my own part I regard this Bill as a useful Measure. I have been engaged in educational administration for nearly a quarter of a century, and I have no doubt the Bill would be of the utmost value. If, as is suggested, the Bill is not proceeded with now, will it be necessary for the Committee to be set up again, to hear the evidence afresh? [HoN. MEMBERS: "No, no!"] If that were so, I should certainly suggest that the proper course would be to proceed with its consideration. In any case the Committee should be informed as to whether that is so or not. If that be not so, and if it would be competent to reintroduce the Bill next Session upon the Report already presented, I think the right hon. Gentleman would meet the great body of opinion among those interested in educational administration by not proceeding further at this stage and reintroducing the Measure at the earliest possible moment next Session when the evidence is in the possession of hon. Members.
I wish to ask: Is it not a fact that this evidence has already been set up in type and that one, if not more, prints have been pulled off? If so, the additional expense of pulling off sufficient prints for the House to see is infinitesimal. My hon. and gallant Friend (Lieut.-Colonel Royds), who spoke with such a delightful blend of personal charm and absence of knowledge, which we all appreciated, may have had first-hand information from some private secretary whose zeal is ahead of his instinct for accuracy, but he might possibly have devoted with profit a little time to seeing how much the cost of setting up type is and how much the cost of pulling off proofs is. He would then find that the question of expense involved in this matter is totally subordinate to the inherent right of the House of Commons to know the evidence on which Joint Committees decide when they consider it worth while to take evidence at all. I make a firm appeal to the Minister not to press this in face of the obvious desire of the Committee.
I wish to make a suggestion. I fully appreciate the point made with respect to the Evidence. I have read the Evidence myself, and I cannot believe many Members of the House will take advantage of an opportunity to do so, nor, if they did, that they would be very much the wiser. In any case, I shall be glad to provide them with so delectable an opportunity. I shall be glad to see that the Evidence is in the Vote Office on Monday, and I hope that, if that be so, the House will then allow me to proceed with the Bill before we rise. I therefore accept the Motion to Report Progress.
Question, "That the Chairman do report Progress, and ask leave to sit again," put, and agreed to.
Committee report Progress; to sit again To-morrow.
Exchequer and Audit Departments Bill
Order read for resuming Adjourned Debate on Question [5 th August ] "That the Bill be now read a Second time."
Question again proposed.
When this Bill was before the House last Friday, I had just been called on to speak when the debate was adjourned. I should have said very few words then, and I shall say even fewer now, but this is a matter in which the Public Accounts Committee is very deeply interested, and I feel bound to say a few words. The Bill is intended to perfect that system of public auditing which has worked such extraordinary economies and improvements in the expenditure of public funds since it was instituted 55 years ago, but during that time, naturally, things have moved and changed, and the system, excellent as it was in its day, is not now up to date. The object of this Bill is to bring it up to date. I am only going to touch on two or three of the most important matters in this Bill, and the first of them is this, that under the system as instituted 55 years ago the Comptroller and Auditor-General was supposed to audit every item and every voucher in the public accounts—what was called a 100 per cent. audit—except in certain special accounts inserted in one of the Schedules to the Bill. As time has gone on and the auditing in the different Departments themselves has become so perfect, it has been found quite unnecessary, and indeed wasteful, to carry out the audit of every voucher, and during the war time it was quite impossible to do so. It is proposed, therefore, now to regularise what was found in practice to be the natural and sufficient system, and that is for the Auditor-General to satisfy himself that the detailed audit of vouchers is effectually done within each Department, and then for him to accept that audit and to confine himself to the biggest questions and the most important questions of economies and irregularities within those expenditures.
Then, also, a great many accounts have grown up which were unknown to generations ago when the system was introduced. Those new accounts must, under this Bill, all be audited, and where the Auditor-General is satisfied that he can do so safely, he may make a test audit in all these cases, and so prevent the waste of money and time involved in auditing every item. But it is provided—and this is a point which the Public Accounts Committee particularly ask—that where the Auditor-General changes his system in any important respect, he should report it to the House of Commons through its Committee, in order that the House of Commons should be satisfied that the change in the system of auditing is a proper one. As things stand at present, a good deal of that has been done. It was found of absolute necessity during the War, and it is most important we should regularise it by altering the law, so that that which has been found necessary may be brought within the strictest letter of the law.
There is another point dealing with economy, and that is the abolition of the office of the Assistant Comptroller and Auditor. I am not going into any details about that, further than to say that there ii a long continuance of opinion that the system hitherto prevailing is not an economical one, or the best for administration, and it is proposed to abolish that office and have one Comptroller and Auditor-General with a staff completely under him. Then we come to a point on which the privileges of this House has a great deal to say, and that is with regard to the salary of the Comptroller and Auditor-General. The salary of that officer was put upon the Consolidated Fund, so that it was not voted from year to year, and was not in any sense within the control or favour of the Government or the Government Department. He was, and is, the watch-dog of the House of Commons in all these matters of economy and regularity, and his salary was put upon the same footing as the salary of a judge. It was fixed 55 years ago, at £2,000. Of course, £2,000 then was a very large sum. A year ago the Government determined to increase the salaries of the chief heads of Departments from £2,000 to £3,000, and very naturally they decided—and I think very properly—that the salary of the Comptroller and Auditor-General, than whom there is no more important officer in this country, should be increased at the same time as those other heads of the great Departments. But the unfortunate thing was that the Government, having come to that conclusion about a year ago, did not take the very first opportunity of having the matter regularised. The salary of the Comptroller and Auditor-General could only properly be changed by a change in the Act of Parliament. It was very wrong. I am bound to say, that that salary should be changed by administrative order, whether the change took the form of an increase in salary or of a bonus. The thing was, by Act of Parliament, put upon the Consolidated Fund, in order to put that officer entirely above any favour or fear from the Government, or from any chance majority of the day. As Chairman of the Public Accounts Committee, I am bound to enter, therefore, a protest against the delay that has taken place in regularising that change of salary. I am sure the Comptroller and Auditor-General himself is not to blame. He desired it to be dealt with in the Revenue Bill, and later by vote in this House, but each occasion was found unsuitable: now it is presented as an Amendment to this Bill after a long delay which I very much regret. Now the matter is before us I hope we shall lose no time in regularising it. I am convinced that this officer deserves to benefit upon at least as good a fortune as every other of the great permanent heads of the Departments.
With the main part of the Bill I have very little fault to find. I understand that during the last seven or eight years it has been the custom of the Comptroller and Auditor General not to take, as he was instructed by Parliament to take many years ago, a, hundred per cent. audit, but to select certain items and judge. This Bill regularises this custom, and at the same time gives power to the Comptroller and Auditor General, if he finds that one or two of the selected items are wrong, even if the Department objects to make a hundred per cent. audit. I have nothing against that. We all know that the work of this officer in the last few years has naturally increased, but a great deal of it has fallen on his staff, and again, he has not taken the full audit as in the old days.
I wish, however, to draw the attention of the House to Clause 7, which reads:
Not his salary!
Yes, his salary! The hon. and gallant Gentleman will keep on contradicting my statements, as in an earlier debate. The salary of the gentleman who is going is to be increased, and is to be dated back a year and a half! My hon. Friend (Mr. A. Williams) has said that this salary is secured on the Consolidated Fund. Has this gentleman received any bonus?
I believe he has.
Already this gentleman has received something which he had no right to receive, and now, in addition, he is going to receive a large increase, which is to be dated back, and will have the effect of increasing his pension. The Judges are on the Consolidated Fund and I want to know if their salaries have been increased or have they received any bonus? I believe I am right in saying they have not. The only reason I have heard why this gentleman should have this is that other people have had it and this only shows the vicious circle we have entered upon because the Government have increased salaries all round. B says my salary must be increased because "A has had his increased and C says the same, and then all the under officials want it as well. Nobody recognises more than I do the services of the Comptroller and Auditor-General, but now we have got to the pitch that when a civil servant is going to leave the service altogether, and when he has received a bonus to which he is not legally entitled, he is to have his salary increased by fifty per cent. merely because he is going and because somebody else who is not going has had his salary increased.
May I point out that in the first instance the gentleman in question did not intend to. leave the service, but unfortunately, owing to the bad state of his health, he is compelled to do so. The increase in the salary was decided upon long before there was any idea of him leaving the service.
This Bill has been brought in during the month in which this gentleman is leaving, and it does not matter for what reason it is brought in. He is leaving now, and the salary is being raised from £2,000 to £3,000 a year when he is leaving, with the result that the new comer is to get £3,000, and with the further result that the bonus which he has had illegally is apparently going to be retained by him. Is he going to return the bonus, and, if not, why date the salary back for a year and a half, thereby giving him something like £2,600? We are very often told that we should regulate these matters by what is done in business circles. I do not know whether there are many business men in the House now but I put it to them whether there is a single case within their knowledge where an official has had his salary raised by 50 per cent. and then retires and the new official succeeding him immediately receives the increased salary. In every case I know of the new official starts at the lower salary. This is a Committee point, and I earnestly hope that hon. Members will do a disagreeable thing, because there is nothing more disagreeable than to have to say to a deserving official, " We are very sorry but we cannot afford to give you an increase in your salary." The country cannot afford these increases and if it is necesary to give them the sooner we get rid of the Department the better. I am extremely sorry to have to call attention to this question in view of the fact that I have some little personal knowledge of the gentleman in question for whom I have the greatest respect, but notwithstanding that fact I thought it was my duty to call the attention of the House to this particular matter.
As I have been Chairman of the Public Accounts Committee, and have had some acquaintance with the subject of this Bill—because I was Chairman of the Treasury Committee on whose report the Bill is based—I think I can best serve the general convenience of the House by explaining the reasons which induced the Committee to make their recommendations. I will confine myself to supporting the particular Clause of the Bill on which the right hon. Baronet (Sir F. Banbury) has addressed the House. I am very glad he has said what everyone who knows Sir Henry Gibson's work would be bound to say, for no Comptroller and Auditor-General was ever more zealous and able in carrying out the duties of his office, or gained higher respect for his office throughout the public service. There is this point to be made, that the Comptroller and Auditor-General is an officer of this House next in dignity to Mr. Speaker, and, although I sympathise in general with what the right hon. Baronet has said about not voting such high salaries at the present time, and about the vicious circle which is thereby created, I am sure that had it been possible to lay this matter before the House at the moment it was decided upon, the House would have said unanimously that it desired, and indeed demanded, that their chief officer, who comes into contact with the heads of public Departments, and who ought to have a high, independent position, should have the same salary—whatever it may be—as the heads of those public Departments. I do not think it would have been in accordance either with the dignity or desire of the House, if it was right to raise the salaries of the heads of the Departments, that the salary of the Comptroller and Auditor-General should have been left at a point £1,000 or £1,500 below that of the heads of the great public Departments whom he has to criticise and to some extent control.
I feel that some phrases used—I am sure, unwittingly—by the right hon. Baronet might be interpreted into a suggestion that the Comptroller and Auditor-General—the present occupant of the office—had almost snapped at the chance to retire within a few months after his salary had been raised. That really is not the case. Anyone who knows him knows his actual love for his work, and knows, too, that no one could be more anxious to go on to the last day before finally retiring had he a chance of doing so. But during my term of office as Chairman of the Public Accounts Committee he has been frequently entirely unfit for work, owing to a most prostrating and depressing form of illness, and these attacks became so frequent that at last he felt himself forced to resign. It is a fact that his pension is calculated on the new salary, but by having to retire now, and not being able to continue in office for the further years he had hoped to remain, he has subjected himself and his family to a very considerable financial loss and sacrifice So that there is nothing at all in the suggestion which I do not think the right hon. Baronet made, or intended to make, that this officer is trying to retire at a moment particularly favourable to himself. It is really all the other way. It comes to this, that it is an unfortunate accident for him—a thing which he has been feeling most acutely—that this matter is not before the House to be regularised until within a few days of his retirement; I believe he is actually to retire at the end of the week. There is a very strong case in regard to the delay that has taken place, and I have no doubt that the Financial Secretary to the Treasury will be able to explain it; but it is only an unfortunate and most regrettable accident from the point of view of the Comptroller and Auditor-General, over which he himself has had no sort of control, having done all he could to try to get the matter brought before the House of Commons at the earliest date. The House might say, why was it not down in the estimates? The Estimates of the Audit Office, like those of every other office, are presented to the House every year. After all there is a good reply to that. If it be right that the salary of such an officer should be on the Consolidated Fund, so that Ministers who may have a " down" on the Comptroller cannot touch it, it is rather illogical that any addition to that salary should be provided on the Estimates; and through the Comptroller would have wished to see it regularised, there were technical reasons why you should wait for the chance of legislature, so that the salary, already on the Consolidated Fund, might still remain on the Consolidated Fund; and not be partly on the Consolidated Fund and partly on the Estimates. That, I imagine, is the explanation of that point.
By permission of the House I would add a word or two to what I have said in introducing this Bill, but I feel there is very little left for me to add in view of the very able exposition of the principles of the Bill both by the Chairman of the Public Accounts Committee (Mr. A. Williams) and the right hon. the Member for Camborne (Mr. Acland). Let me add my testimony to what has been said that the resolution by His Majesty's Government to propose to the House an increase in the salary of the Comptroller and Auditor-General was taken long before any idea of retirement had entered into the mind of the Comptroller and Auditor-General, or before any such idea had been communicated to the Treasury. On. the general merits of the question, the right hon. baronet the Member for the City of London (Sir F. Banbury) has noted that this is a Committee point. I will only observe that the Comptroller and Auditor-General is in many ways the highest and the most responsible officer in connection with the administration of this country, and that it is essential, in the interests of efficient administration, that his status as a high officer of this House should be inferior to that of no other officer in the service. The Chairman of the Public Accounts Committee, after supporting the principle of the Bill, administered the rod for the delay in proposing this particular provision. If I may put it in this way, I can accept the rod, and express my own concern that it should not have been possible at an earlier date to bring this matter before the House for its formal ratification, although it was brought to the attention of the House, of course, in the Report of the Committee on which the increases in salaries have been based. It is to me a matter for regret that it should not have been proposed at an earlier time, but there were circumstances which made that difficult. The Report to which I have referred was made in July of last year. The decision upon the Report was not taken until some time later, and then it seemed as if the most appropriate opportunity for submitting the question to the ratification of the House would be in the Revenue Bill, which, it will be remembered, was introduced at the beginning of this Session. Then followed the misfortune that it was found that the matter was not one which it would be possible to put into the Revenue Bill. At that time the Committee over which the right hon. Gentleman the Member for Camborne presided was still sitting, and was expected to report shortly. It was then seen, and, I think, rightly seen, that the next appropriate opportunity for bringing the matter before the House would be in the Bill to be introduced in consequence of the Report of the right hon. Gentleman's Committee. That Committee did not report until the 23rd June this year, and the time between then and now has been accounted for by the necessity of submitting the Report for consideration to the Public Accounts Committee. It is, of course, late in the Session to propose this Measure to the House, and it is an unwelcome thing to introduce such a Measure so late. All the credit that I venture to claim in the matter is for having faced certain necessary difficulties in at least bringing the matter before the House before the end of this Session. As to the rest of the delay, I myself, as I have said, regret it, though I believe there were circumstances which made it, if not inevitable, at any rate extremely difficult to avoid.
12 M.
I think the whole House will have heard with the deepest possible regret that it is to lose the services of one of its most trusted servants, and also that he has been, as we understand, the victim of a very regrettable series of accidents. This, however, is really a matter of very high Constitutional moment. It is not merely a question whether we are to save or to spend £1,000 a year. That is not a small matter at all, especially if it be put on the ground on which it has been put by the Financial Secretary to the Treasury. But the point which I desire to bring to the attention of the House is this: The Comptroller and Auditor-General occupies, in relation to the House1 on the one side and to the Executive on the other, an absolutely unique position. He is the guardian of the finance of the House of Commons, and is not the servant of the Executive. But, as I understand—I shall be only too glad to be corrected if I am wrong—the salary of this official of the House has been increased by administrative action, and not by the vote of the. House. As I understand it from the speakers who have preceded me the Comptroller and Auditor-General has already received, by the action of the executive, a 50 per cent. increase of salary, and now the executive are asking the House of Commons to endorse that action. That is a most unconstitutional proceeding. This officer is in the position of a judge. What would be said if by administrative action the executive were to increase the remuneration of a judge, and then come to the House of Commons to endorse that action? I cannot think this is from the highest constitutional point of view a matter of little consequence, and I beg the House of Commons to reflect very deeply before they give their assent to the action of the Executive.
Question put, and agreed to.
Bill accordingly read a Second time, and committed to a Committee of the whole House for To-morrow.—[ Mr. Hilton Young. ]
Expiring Laws Continuance Bill
Order for Second Reading read.
Motion made, and Question proposed, "That the Bill be now read a Second time,"
That is not the first time I have taken exception to this method of legislation. On many previous occasions I have been supported by hon. Members who subsequently got on to the Treasury Bench, and I notice that a very different attitude is taken by hon. Members when they are in opposition and when they are on the Treasury Bench. When in Opposition they are against this method of legislation, but when they get to the Treasury Bench they forget all about the protests they made in their earlier political days. The Bills in this Schedule are growing every year. We have now got a Schedule extending to no fewer than seven pages, which formerly appeared on one page, of laws which are renewed year by year. I have always argued that these Bills ought to be referred to a Joint Standing Committee or some other legal authority, which will go through them, and arrange to scrap Acts which are obsolete, which are quite numerous, and to make permanent those that ought to be permanent. There are many Bills in this Schedule which we renew year by year, which no one would dream of dropping. For example, the Ballot Act appears in this. Why should the Ballot Act not be made permanent instead of renewing it year by year? There are other Acts which should not be in the Schedule at all, and should be abandoned. I do not notice in this year's Schedule the Brown Linen Act, which used to be passed every year. I do not know where it has disappeared to at all. The hon. Member for the Cromac Division (Mr. Lindsay) will understand the situation in regard to that Act. We have gone on renewing for 40 years an Act of Parliament which said that anyone in Ireland who manufactured or sold brown linen was to be sent to gaol. My hon. Friend opposite is now manufacturing it notwithstanding that Act, and no one in Ireland ever took the slightest notice of the Act. Then, suddenly, it disappears from this Schedule and it ceases to be a crime. But you still retain the Textile Manufacturers (Ireland) Act, 1840. I have taken the trouble of looking that up. It is nearly as funny as the other one. It empowers any constable to enter the house of any person who is carrying on any fraud in connection with the manufacture of linen or cotton or silk, and a lot of other things which are not manufactured in Ireland at all, and
"take possession of all such materials so delivered to him as aforesaid (if a warp on the beam with the beam and mountings)."
What does that mean? We ought to know what legislation we are passing. I do not know what it means, and I am sure the hon. Member opposite, who knows all about the trade, could not give us an explanation of that. Then we get this joke at the finish:
"And he it enacted that this Act shall extend to Ireland only and shall commence and take effect from and after the end of this present Session of Parliament and shall continue to be in force for one year."
That was in 1840, and no one has ever looked at that Act from the time it was passed to the present hour, and we have gone on ever since repeating it in the Expiring Laws Continuance Bill. In the Ecclesiastical Jurisdiction Act, 1847, we get another specimen of archaic legislation. Here is one provision:
"And be it enacted that the jurisdiction of every Ecclesiastical Court in England in causes and matters testimentary or relating to the administration of the personal estate of intestates shall continue unaltered by any change of province, diocese, archdeaconry or other jurisdiction whatever within the same limits and in like manner as was by law allowed before the passing of the hereinbefore recited Act. And he it enacted that the law of Bona Notabilia shall be continued unaltered by any change of province, diocese or archdeaconry."
Will the Home Secretary kindly tell us what this law of Bona Notabilia is?
Are those the actual Sections which are continued by this Bill, because I notice in the third column of Part 1 of the Schedule that the provisions of the Ecclesiastical Jurisdiction Act which it is proposed to continue are the provisions continued by 21 and 22 C. Vic. 50. Has the hon. Member looked at 21 and 22 Vic?
I shall be delighted to lend the hon. and gallant Gentleman this book. If he can understand it he is a much more intelligent lawyer than I am. I cannot make head or tail of it. Then we have to pass every year the Corrupt Practices Prevention Act and the Locomotives Act, which prohibits all motor traffic, I believe. There have been six Acts passed since and we are still passing the Act of 1865 every year. Then there is the Sunday Observance (Prosecution) Act, The amusing part of this Act is that it was passed to protect sand grouse in this country, and there never was any sand grouse in this country. There has never been a sand grouse seen in this country since the Act was passed. It is called the Sand Grouse Protection Act and, apparently, like all protection Acts, it had the effect of destroying the thing which it was intended to protect. There are various forms of grouse—the red grouse, the willow grouse, and others'—but the one thing that does not exist here is sand grouse, and why in the name of common sense we are going on year after year with the object of acclimatising a form of grouse which is not a grouse at all I cannot understand.
There is also an Act known as the Grey Seals Protection Act, 1914. Its object is to protect the species of seal known as the Halichaernus grypus. I do not know what we are protecting when it is so described. Perhaps the Home Secretary would kindly explain what we are protecting. I am advised that there is no such thing in the waters of this country as the Halichaernus grypus. It is a variety that is found only in Scandinavia. It sometimes swims over as far as Denmark, and the Danes regard it as such a nuisance that the Danish Government give a reward of three kroner for everyone that is killed. But we, instead of regarding them as a pest and a nuisance, go on year after year passing this Act for the protection of the Halichaernus grypus. The humour of this legislation is that there is no such thing in this country to protect. No one has ever seen one of these in this country. It reduces legislation to a farce when year after year we go on repeating laws of this kind.
Then the last one in the list of Part I is the Shops Early Closing Act. Here the Home Secretary cam explain. I do not think that he will attempt to tell us about the Halichaernus grypus or the sand grouse, but he can tell us about the Shops Early Closing Act. In this Act we are asked to say again, as we said during the War, when we said so many silly things, that ice cream, while a food and under the food regulations, must not be sold in the streets unless it is composed of certain materials. We are also asked to re-enact the provision that chocolates and cigarettes must not be sold in theatres after 8 o'clock at night. I would much rather allow these worthy, respectable industrious Italians to go round selling ice cream out of barrows than to take out hurdy gurdies and play music outside our doors from morning to night. The Home Secretary might tell us that in the Schedule to this Bill he will be willing to accept an Amendment on the subject of the Shop Hours Act. This grandmotherly legislation cannot go on for ever. It is not necessary to go from year to year laying down that it is a crime to sell chocolates and cigarettes in the theatre after 8 o'clock or for Italians to sell ice cream as they have sold it all their lives. I hope that the Home Secretary will accept some Amendments and be able to make this Bill more sensible than it has been up to the present.
I wish to call attention to a ruling of one of my predecessors, that to enter into details in regard to any Act is a matter for the Committee stage of the Bill, when the proper course is to move to strike out the Act from the Schedule. The hon. and learned Member is, of course, quite right in his general observations.
I was under the impression that I was saving a great deal of time in putting all my points into one speech rather than in having to move twenty-five Amendments.
I notice that the ruling in question was given to an hon. Member who came from the same country as the hon. and learned Member (Mr. McVeagh).
May I remind the House that the Second Reading of this Bill is really a formal matter, that the real work on the Bill is in Committee, and that the Committee stage will be taken, not at this late hour of the night, but on Monday afternoon, when all the points which have been so ably put by my hon. and learned Friend (Mr. McVeagh) will be taken as having been put by him and the House will then discuss them.
Will the right hon. Gentleman answer the question as to whether he will accept Amendments to the Shop Hours Act?
That is a question on a particular Act. It should be referred to in Committee.
Is the first question in order—whether the right hon. Gentleman proposes to take steps to alter the whole scope of the Bill, and to set up some authority that will go through these Acts of Parliament, and decide what shall be scrapped and what shall be made permanent?
Question put, and agreed to.
Bill read a Second time, and committed to a Committee of the whole House for Monday next.—[ Colonel Leslie Wilson. ]
Public Works Loans (Remission of Debts)
Considered in Committee.
[Mr. JAMES HOPE in the Chair.]
Motion made, and Question proposed,
"That it is expedient to authorise the remission of arrears of principal and interest due to the Public Works Loan Commissioners in respect of Eyemouth Harbour, in pursuance of any Act of the present Session relating to Local Loans."—[ Mr. Hilton Young. ]
This is a formal Resolution in consequence of the necessity to carry out the Public Works Loans Bill as regards the remission of one department only, which has been before the House for some years.
Question put, and agreed to.
Resolution to be reported To-morrow.
Supreme Court Officers (Retirement, Pensions, Etc.) Allowances
Considered in Committee.
[Mr. JAMES HOPE in the Chair.]
Motion made, and Question proposed,
"That it is expedient to authorise the payment, out of moneys provided by Parliament, of any allowances payable or other payments to be made by virtue of any Act of the present Session to make further provision with respect to the appointment, conditions of service and pensions of certain officers of the Supreme Court in England, and to authorise the abolition of certain offices therein, and for purposes connected therewith."—[ Mr. Hilton Young. ]
I asked at a previous stage whether the Home Secretary could give me any further explanation whether it was anticipated that money would be saved. I do not now desire to call upon him to give the explanation. The Financial Secretary to the Treasury has kindly given me a very full and careful explanation, for which I am grateful and I do not wish to press the matter.
Question put, and agreed to.
Resolution to be reported To-morrow.
Emergency Powers Act, 1920
Order for consideration of His Majesty's Message [30 th May ] read, and discharged.
Summer Time Bill
Order for resuming Adjourned Debate on Question [28th June], "That the Bill be now read a Second time," read, and discharged; Bill withdrawn.
Exchequer and Audit Departments [Salaries]
Committee to consider of authorising the charge on the Consolidated Fund of an annual salary of three thousand pounds to the Comptroller and Auditor-General in. pursuance of any Act of the present Session to amend the Exchequer and Audit Departments Acts, 1866 and 1889, and the payment, out of moneys to be provided by Parliament of such salaries as the Treasury may determine to such officers and servants as the Comptroller and Auditor-General may appoint under such Act—( King's Recommendation signified)—-upon Monday next.—[ 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 Twenty-three Minutes after Twelve o'clock.