House of Commons
Monday, October 24, 1921
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
East Lothian County Buildings Order Confirmation Bill,
Considered; to be read the Third time To-morrow.
Dorward's House of Refuge (Montrose) Order Confirmation Bill,
"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Dorward's House of Refuge (Montrose)," presented by Mr. MUNRO; and ordered (under Section 7 of the Act) to be considered To-morrow.
Oral Answers to Questions
Safeguarding of Industries Act
Arc-Lamp Carbons
asked the President of the Board of Trade whether, under the heading of arc-lamp carbons, which are made of high-class material, his Department have instructed the Customs, under the key section of the Safeguarding of Industries Act, to collect the duty of 33⅓ per cent, on all kinds of carbons, irrespective of quality, shape, or size?
The Customs have not been instructed that all kinds of carbons are dutiable under the Safeguarding of Industries Act. A ruling has been given that the carbons in small dry cells for pocket lamps fall within the relevant heading in the Schedule to that Act, but in view of certain information which has been brought forward, the question is now being reconsidered.
Does not the right hon. Gentleman think it absurd that small integral parts of an article like a pocket battery should be taxed and traders should be put to inconvenience over trivialities of that sort?
Magnetic Compasses
asked the President of the Board of Trade why magnetic compasses, when small in size, are regarded as toys or imitation jewellery, and as such are exempt from the operations of the Safeguarding of Industries Act; and why with regard to various other articles of a toy nature duty must be paid?
The Board of Trade list of dutiable articles, under Part I of the Safeguarding of Industries Act excluded magnetic compasses, of any size, which are properly described as toys or cheap jewellery, on the ground that they are not of sufficient accuracy to bring them under the heading of Scientific Instruments. As regards the second part of the question, toys as such are not included in the list of dutiable articles, but some articles sold as toys may fall under some of the general headings in the Schedule to the Act on the ground, for instance, of their being in effect optical instruments.
Who decides whether they are of sufficient size to make accuracy certain?
There must always be a border line. The ultimate authority would be the referee.
Does the right hon. Gentleman realise that this is putting a premium on inaccuracy?
Glassware
asked the President of the Board of Trade on what grounds his Department have decided that the glass container of a vacuum flask does not come within the definition of either scientific or blown glassware, whilst glass articles of the nature of artificial cherries for millinery, coloured glass balls for Christmas trees, small artificial eyes for teddy bears and dolls, and similar articles, are dutiable and must bear the duty of 33⅓ per cent.?
Glass containers for laboratory vacuum flasks fall under the heading of scientific glassware in the Schedule to the Safeguarding of Industries Act. The ordinary vacuum flask food container is neither scientific glassware nor lamp-blown ware, and is therefore not dutiable. The articles to which reference is made in the latter part of the question may or may not be dutiable, according as they are or are not lamp-blown ware.
Do dolls' eyes come under the definition of the Act?
asked the President of the Board of Trade whether the definition of blown glassware, as stated in, this House by the Parliamentary Secretary to the Overseas Trade Department on behalf of the Government, is accepted by His Majesty's Government as being a correct definition; and, if so, will he give instructions so that Customs officials at the ports may have this definition before them, and thus avoid the holding up of many thousands of packages which are now being detained owing to articles which are outside the above definition being considered as liable for duty?
I am not aware that any comprehensive definition of "lamp-blown ware" (the term used in the Schedule to the Safeguarding of Industries Act) was given in this House, though an attempt was made to remove certain misconceptions as to its meaning. The term is used to describe glassware produced by a glass-worker with a blowpipe at a bench, in contradistinction from "furnace blown ware." If the hon. Member can produce definite evidence that products not properly covered by the heading are being charged with duty, I shall be glad to consider it, and any question of doubt can be referred to the arbitration of a referee.
Is the right hon. Gentleman aware that no referee has been appointed and that these goods cannot be obtained at the docks pending the appointment of a referee?
Toy Magic Lanterns
asked the President of the Board of Trade if he is aware that, under the key industries section of the Safeguarding of Industries Act, his Department have decided that toy magic lan- terns, whether with or without the lenses, or the thick glass with which these articles are supplied commonly called lenses, are liable to a duty of 33⅓ per cent, which is levied not only on the article but also on the nursery slides which accompany the article; and whether he is aware that the Minister of the Overseas Department, on behalf of the Board of Trade, stated that these toy articles would not be liable to duty under the operation of the key industries section of the Safeguarding of Industries Act?
Toys are not dutiable as such, but certain classes of goods which are commonly described as toys are in fact of the nature of optical instruments and as such are properly dutiable under that heading of the Schedule to the Safeguarding of Industries Act. I would remind the hon. Member that if there is any doubt as to whether any article in question is of such a character as to be in effect an optical instrument the matter can be referred to the arbitration of a referee.
Is the referee here the Mad Hatter?
Dutiable Articles
asked the President of the Board of Trade whether, in addition to the list of articles chargeable with duty under Part I of the Safeguarding of Industries Act, containing some 6,000 different commodities, recently published by His Majesty's Stationery Office, a further list has been published containing numerous other items and has been circulated to the Customs officials; if so, can he say what is the object of publishing two lists instead of one; and why one has not been made known to the public?
No, Sir; the list issued to the Customs officials is identical with that issued by His Majesty's Stationery Office for sale to the public.
Is the right hon. Gentleman aware that there are different items on the Customs list from those on the list issued to the public?
The hon. Gentleman is mistaken. The Customs list is identical with the list issued to the public.
Electric Lamp Filaments
asked the President of the Board of Trade whether he is aware that electric half-watt lamps are now being held up by the Customs, who demand duty on the ground that the tungsten contained therein is dutiable, and in other cases on the ground that the glass bulb is lamp blown; and whether, in view of the undertaking given on this matter by the Minister of Overseas Department, he is prepared to take any action?
I am aware that duty is being charged on electric lamp filaments which even when embodied in complete incandescent electric lamps have not lost their identity as "manufactured products of metallic tungsten." No duty is payable in respect of electric lamp bulbs, except in the case of certain small bulbs which are lampblown ware and therefore produced by a process different from that used for the production of the lamps ordinarily used for lighting purposes. The latter part of the question consequently does not arise.
Does not the right hon. Gentleman think that to treat the integral part of a complicated production like a lamp as dutiable is very absurd, and tends to bring the whole thing into ridicule?
I have to interpret the Act of Parliament.
Complaints
asked the President of the Board of Trade whether he can state the number of complaints he has received under Part II of the Safeguarding of Industries Act; in regard to which industries have the complaints been made; whether he has in any case, and, if so, in which, directed an inquiry to be made; and whether he has given, or will give, notice of such inquiry to all those engaged in industries which may be affected by its results?
The number of complaints so far received under Part II of the Safeguarding of Industries Act is 21. As the hon. and gallant Member will see from the Rules of Procedure for Committees prescribed by the Board of Trade, of which I am sending him a copy, due provision is made for public notice of the appointment of any Committee in order to enable persons desiring to give evidence to communicate with the Committee. No Committee has yet been appointed, and I think there are obvious objections to publishing information regarding the nature and scope of any particular complaint received by the Board until such complaint is referred to a Committee.
Employment
asked the Prime Minister whether he can make any statement as to the effect of the Safeguarding of Industries Act in regard to the safeguarding of employment as set forth in its preamble?
I have been asked to reply. No Orders have yet been made under Part II of the Safeguarding of Industries Act, and it is accordingly not possible to form any judgment of the effect of such Orders in safeguarding employment.
Will the right hon. Gentleman make a statement before the House rises?
Sodium Salts
asked the President of the Board of Trade whether he is aware that six small samples of sodium salts, sent on the 5th instant from Paris to a firm in London for test purposes, are being detained by the Customs authorities; that, on the 11th instant, the Customs authorities advised the consignee that the samples were being detained in order that entry should be made, value declared, and duty paid; that the consignee replied on the same day that the samples together weighed less than 1 lb., were of no commercial value, and were not dutiable; and that he wrote again on the 18th instant complaining that the samples were still detained; and whether he will have inquiries made into this case?
I am having inquiries made and will inform the hon. Member of the result in due course.
Does the hon. Gentleman not see that this sort of delay is very damaging to trade? Things are held up by the Customs for weeks.
There is an obvious case for inquiry and I will personally inquire into the matter.
Peace Treaties
Hungarian Debts
asked the President of the Board of Trade whether His Majesty's Government has given notice to the Hungarian Government that the British authorities intend to set up a clearing house for Hungarian debts due to British subjects under the provisions of Article 231 of the Treaty of Trianon as between the United Kingdom and Hungary; whether the notice has expired; and, if so, will he state what the date is upon which the services of the British clearing house for Hungarian debts will be at the disposal of the public?
The answer to the first part of the question is in the affirmative, and a Convention is being negotiated similar to that concluded with Austria, which will permit of certain modifications of the provisions of Article 231 of the Treaty of Trianon. The period of three months from the date of the notice within which the clearing offices are to be established has not yet expired. As my hon. Friend is probably aware, the Administrator for Hungarian property has been appointed, and it is hoped that the clearing office will be very shortly in the position to accept claims under Sections III and IV of Part X of the Hungarian Treaty.
Upper Silesia
asked the Prime Minister whether the question of Upper Silesia was submitted to the League of Nations as a dispute under Articles 12 and 15 of the Treaty of Versailles; whether the undertaking given by His Majesty's Government and the French Government to accept the decision of the Council of the League was conditional on that decision being unanimous; whether both Governments definitely accepted the position of parties to the dispute within the meaning of the sixth paragraph of Article 15; whether Germany was invited to accept the obligations of membership in the League under Article 17 for the purposes of this dispute; and whether Germany and Poland, or either of them, were officially represented at the deliberations of the Council, as provided by the fifth paragraph of Article 4?
My right hon. Friend the Lord President of the Council, who is unavoidably absent from the House, informs me that the recommendations made by the Council of the League of Nations to the Supreme Council contain not only a statement of the very elaborate provisions proposed for dealing with the industrial area in Upper Silesia, but a full statement of the grounds on which their decisions were unanimously arrived at. In the circumstances, I suggest that my Noble Friend should wait until these documents are in his hands and he has had an opportunity of studying them.
asked the Prime Minister whether the effect of the decision regarding Upper Silesia has been considered in reference to the payment of the German indemnities; and whether it is intended to reopen the question of the indemnities in view of the award of the Council of tire League of Nations?
No, Sir. The arrangements accepted by the German Government in May last provide for the automatic regulation of the amount, without reference to any decision upon Upper Silesia.
In regard to the last part of the question, is the right hon. Gentleman aware that the financial and commercial community in this country are almost unanimously of opinion that the indemnities injure this country, and will the matter he reopened?
Franco-German Agreement
asked the Prime Minister whether he can give the terms of the agreement made between M. Loucheur on behalf of the French Government and Herr Rathenau on behalf of the German Government; and whether he can state the effect of this agreement upon the reparation provisions of the Treaty of Versailles and subsequent agreements modifying these provisions?
I propose to issue a White Paper on this subject at the earliest possible date.
Taxation and Currency, Germany
asked the Prime Minister whether any representations have been made by Great Britain or the Allied Powers to Germany as to the inadequate taxation which she is imposing on her citizens or as to the continued inflation of her currency by means of the printing press?
The Committee of Guarantees appointed by the Reparation Commission has been constantly engaged since May last in endeavouring, in collaboration with the German Finance Ministry, to find means for reducing the deficit on the German Budget, and so to check the issue of fresh currency.
Cilicia
asked the Under-Secretary of State for Foreign Affairs whether he has any information that a representative of the French Government is at present negotiating a political and economic agreement with the Turkish Nationalist Government at Angora; and whether this agreement provides for the concession of the full Turkish claim in Asia Minor and in Thrace, including Constantinople, and the grant of exclusive rights in the Baghdad Railway?
asked the Under-Secretary of State for Foreign Affairs whether he has had his attention drawn to the allegations that the French Government are entering into fresh negotiations with the Angora Government for a separate peace with special concessions to French nationals; if so, has His Majesty's Government been consulted and kept informed as to the scope and nature of the terms proposed; and whether there is any likelihood of a settlement being come to without the approval of His Majesty's Government and the Supreme Council?
His Majesty's Government have learnt that the negotiations, which have been carried on for some time past at Angora by a French representative, on various matters arising out of the evacuation of Cilicia by French troops, have been brought to a satisfactory conclusion. They have, however, received the assurance of the French Government that the negotiations were limited to those questions and did not include the larger issues alluded to in the concluding paragraph of question No. 53.
Does the hon. Gentleman, on behalf of the Foreign Office, really suggest that French diplomatic representatives were discussing the question of Cilicia at the Angora Conference?
Have we the assurance of the French Government that M. Franklin-Bouillon has not been discussing the question of the grant of exclusive rights to the French people in Asia Minor?
If the hon. and gallant Gentleman will read the answer I have given, he will see that I have answered that.
Can my hon. Friend tell me now, or at a future time, what provisions, if any, have been made for the safety of the Armenian refugees?
I must ask the Noble Lord to question me on that matter at a later date.
Is it possible to have the agreement between the French Government and the Kemalists?
Obviously, I cannot answer that question. This is an agreement between the French Government and the Nationalists.
Having regard to the fact, as I understand, that there is a compact between the Allies in this matter of the war between Greece and the Kemalists, and to the fact that the representative of the French Government specially discussed it, and, it is alleged, arrived at an understanding, does it not concern us in that event, and will the hon. Gentleman table the agreement arrived at?
I cannot give an answer on that subject, as we have not yet seen the agreement.
West Hungary
asked the Under-Secretary of State for Foreign Affairs whether he can make any statement as to the prospects of the execution of the provisions of the Treaty of St. Germains with regard to the Burgenland?
Representatives of the Austrian and Hungarian Governments met recently at Venice at the invitation of the Italian Minister for Foreign Affairs. They signed an agreement in regard to the transfer of West Hungary, which is to be submitted to the principal Allied Governments for their approval.
Government Staffs and Offices
Food Control Department
asked the President of the Board of Trade how many persons are at present employed in or by the Food Control Department; what is the present cost of their salaries and wages; what notices must be given to terminate their services; and if and when he expects to close down the Department?
The number of persons at present employed in the Food Department is 891, as compared with 1,599 on the 1st April. During this period the Department has been responsible for the liquidation of stocks amounting, approximately, to £50,000,000. The present cost of salaries and wages is £20,000 a month. All engagements are terminable at one month's notice with an additional month's warning where practicable. Except for the adjustment of foreign wheat purchases, it is expected that the liquidation of accounts will have been completed by the end of September, 1922; at any rate, to such an extent as will enable the Board of Trade to dispense with the services of all temporary officers.
Does not the right hon. Gentleman consider that the cost of this large staff far exceeds any possible loss that may arise from the dispersal of stocks at the present moment?
I do not think that that time has arrived, but it will undoubtedly do so.
Why cannot this Department be wound up until September, 1922?
I would remind my right hon. Friend that the turnover of this Department has been between £2,000,000,000 and £3,000,000,000, and: accounts are even now in suspense which cannot be arranged at once, and claims to a considerable extent are being held: up. Having regard to the enormous amount of trade, I do not think that the length of time taken to liquidate is excessive.
Will the right hon. Gentleman circulate a White Paper stating what these 800 officials are engaged at at the present moment?
I will consider that. I do not consider it unreasonable.
Will the right hon. Gentleman say that none of these temporary officials will become permanent officials during that period?
There is no intention of doing that.
Did not the right hon. Gentleman tell us at the end of the Summer Session that the Department was to be wound up in November, end why, therefore, is it to be extended to next year?
I have no recollection of that. I think that my right hon. Friend must have in mind the question of the food officers who have been responsible in different areas.
Questions
Clinical Thermometers
asked the President of the Board of Trade whether, in the case of a person purchasing a clinical thermometer and not being content with the maker's guarantee and desiring to have the instrument tested, it is possible for the individual to take the same to the National Laboratory, Kew, and have it tested for a few pence; and, if this is not so, can he make arrangements for it being done in such cases where it is desired.
Single clinical thermometers can be tested at the National Physical Laboratory on payment of a fee of Is. 6d.; the fee when large quantities are submitted is 3d. per instrument. This arrangement has been in existence for several years.
Ministry of Transport
asked the President of the Board of Trade whether the Ministry of Transport has now become, or is about to become, a Department of his Board; and, if so, can he say what reductions will be made in the staff which it employs, at the present time?
As already announced my right hon. Friend the Member for Cambridge (Sir E. Geddes) has resigned, and the Ministry has been placed in charge of my hon. Friend the Parliamentary Secretary (Mr. Neal). The arrangements for the future conduct of the Ministry are under consideration, but have not yet been decided. I am informed by the Parliamentary Secretary that by the settlement of those claims of the railway companies which would have arisen at the end of control, and by the passage of the Railways Act, 1921, a reorganisation of the Ministry was made possible. Substantial reductions in the staff have? already taken place, and others are being made.
Woollen Clothing
asked the President of the Board of Trade whether he can publish a chart showing the cost of wool necessary to make a suit of clothes and all the various costs or profits necessary before the clothes reach the purchaser; and can the wool in this country that cannot be sold be used in manufacturing tweeds?
I am not prepared to authorise, at the present time, the inquiries that would be necessary to secure satisfactory data for the construction of the suggested chart. The chart would necessarily be far from simple, in view of the variations between different classes of clothing in respect of costs and charges at the various stages. I am sending my hon. Friend a copy of the Report made on the standard clothing scheme, in which there is contained a quantity of information on some portions of the problem. Some of the unsold wool in this country is certainly suitable for the manufacturing of tweeds.
Trade Agreement, Russia
asked the Prime Minister whether his attention has been called to breaches on the part of the Russian Soviet Government of the terms of the Trade Agreement recently entered into between the Russian Soviet Government and Great Britain by reason of the persistent propaganda of the Soviet Government against Great Britain in the East; whether he has also had his attention called to a recent statement of the Chancellor of the Exchequer, to the effect that anyone sending goods to Russia would be making a present of them under existing circumstances, and that traders in Great Britain were not in a position to make presents to anybody; and whether, under the above circumstances, the Government will take immediate steps to cancel the trade agreement with the Soviet Government and to request the withdrawal of the Russian trade delegation in this country, which would appear to be serving no useful purpose?
As I stated on Thursday, in reply to a question by my hon. Friend the Member for Tamworth, the Government is examining the reply of the Bolshevik Government to their despatch on the question of the breaches of the Trade Agreement. In the meantime, I am not in a position to make any statement.
Is the right hon. Gentleman aware that a number of traders, notably Mr. Urquhart, who has written to the newspapers, have recently been to Russia and have found it quite impossible to start trade in that country by reason of the conditions and restrictions imposed by the Soviet Government?
Is it not a fact that Mr. Urquhart was a week behind the other joker?
I have no doubt at all that there are difficulties, but at the same time a certain quantity of goods is going to Russia. The other day I gave the House some of the figures. The goods are not many, but they do amount to a very considerable quantity
Will the right hon. Gentleman consider very carefully, before he gives way to any political pressure of this sort, that goods to the value of £7,000,000 a year are going to Russia from this country?
With regard to the second sentence of the question, is the Government taking any steps to stop this Soviet propaganda in the East?
Certainly. We are taking the most effective steps, in this country and in the East, and we are in communication with the Soviet Government, and a very stern message was sent to them on the subject.
Unemployment
Royal Dockyards (Ship-Breaking)
asked the Prime Minister whether, in considering schemes for alleviating distress by unemployment, he will give consideration to the breaking up of obsolete ships in the royal dockyards?
I have been asked to reply. This question has recently been further considered by the Board of Admiralty and the decision previously reached was confirmed, namely, that it is impracticable to undertake ship-breaking in His Majesty's Dockyards. The principal factors leading to this decision are that space for ship-breaking could only be found at the expense of naval requirements, and the surrender of this space would result in increased cost of ordinary dockyard work, as the docks and basins are already congested. Every inducement is being given to outside firms to undertake ship-breaking work.
Has the hon. and gallant Gentleman received any replies from outside firms, or has any work been undertaken by outside firms?
Yes, Sir, we have had some replies, and they are under consideration now.
Is it not true that already shipbreaking is being done in Plymouth, but that a further deputation is waiting upon the Admiralty to get approval for such work, which will not take up too much room in the dockyard? Will the hon. and gallant Gentleman give further consideration to this question, which is a very pressing one, and in regard to which a deputation has been appointed?
The hon. Member is giving information rather than seeking it.
Will the hon. Gentleman give the reasons why the Government cannot proceed with the breaking up of these ships?
The hon. Member should put down a further question.
Relief Works (Government Grants)
asked the Minister of Health if he is aware that statements have appeared in the Press in connection with the period of Government grants to local authorities for unemployment works to the effect that the intention is that these grants should be paid for half the period of such loans, and as the full period is not in any case to exceed 15 years the liability of the State in this respect would be for 7½ years; if he can state definitely whether the maximum period of 15 years mentioned in paragraph 1 of the Ministry of Health Circular No. 245, under date 22nd September last, refers to the period of the loan or to the period of the Government contribution for interest and sinking fund charges; and if he will take action in the matter?
The grant is to be paid for half the period for which the loan is contracted subject to the condition that the maximum period for which the grant will be paid is 15 years, whatever the duration of the loan period may be. This applies to non-revenue producing work. The answer to the last part of the question is that the 15 years apply to the grant only and not the loan period.
In consequence of this circular being put into operation will local authorities not be prevented from getting any grants from what is known as Lord St. Davids' Committee?
No, not at all. The work is being done through the Lord St. Davids' Committee, both the non-revenue-producing work and the revenue-producing work.
Channel Tunnel
asked the Prime Minister whether, in view of the present and probable future state of unemploy- ment, he can state when a decision in respect of the construction of the Channel Tunnel will be arrived at?
No, Sir. I am not in a position to say when a decision will be taken.
Tin Miners, Cornwall
asked the Prime Minister whether he is aware of the special circumstances which make the unemployment among Cornish tin miners a matter of exceptional urgency, demanding consideration apart from the general problem of unemployment; that, owing to the collapse of a shaft at the East Pool mine which has put out of action the electrical pumping machinery and the lack of means to continue pumping at Cam Brea, there is danger that the South Crofty mine will be flooded past recovery within three months, thereby permanently destroying one of the few tin mines in which employment might be resumed without prohibitive outlay; that the owners are not in a position financially to cope with the difficulty of pumping and of necessary re-equipment, but would be willing to restart working the mines even at a loss, if such loss did not greatly exceed the present cost of pumping; and, in view of the special claim of the mineowners and miners of the Cornish tin mines on the Government, according to the Report of the Departmental Committee of the Board of Trade on Non-ferrous Mining, 1920, whether he will without delay take measures to deal with this urgent matter?
I have been asked to reply. With regard to the general question of unemployment amongst Cornish tin miners, I can add nothing to the statement which I made in answer to questions by the hon. Member for Penryn and Falmouth on 20th October. With regard to the position at South Crofty, my Department have had more than one meeting during the present year with the parties concerned with the object of adjusting matters. I have recently had local inquiries made into the present circumstances, and I have asked the parties to meet again this week.
Transport
London Suburban Railways (Electrification)
asked the President of the Board of Trade whether he is aware that the electrification of the suburban portions of the trunk lines leading out of London is urgently needed, but is hung up owing to the inability of the companies to raise the necessary capital; and will he say if a railway company will be eligible for a grant to carry out such work under the terms of the Trade Facilities Bill?
I understand that the electrification of these lines is postponed, not because the companies cannot raise money, but because present prices render the work un-remunerative. The terms of the Trade Facilities Bill would cover a guarantee of capital raised for such schemes.
Crewe Railway Works
asked the President of the Board of Trade whether an order for 94 engines was placed in Crewe during the period of railway control; on what conditions was the order for the engines given; whether the order was subsequently withdrawn; and, if so, what were the reasons for the withdrawal?
asked the Minister of Transport whether an order for, approximately, 94 locomotives was placed in Crewe works before the decontrol of the railways and the order was subsequently withdrawn; and, if so, can he state the reason for this action?
I have made inquiries and can find no trace of the order referred to by my hon. Friends, and as the only railway works in Crewe are those of the London and North Western Railway Company, who would not in the ordinary course accept any order from outside sources, I think there must be some misapprehension. If either of my hon. it Friends has further information and will let me have the same, I shall be glad to inquire further.
Road Vehicles (Lighting)
asked the Minister of Transport whether he is aware that, owing to the official end of the War having taken place, the Regulations relating to lights on vehicles have lapsed; if he can state what they are and whether, in consequence, it is no longer compulsory for certain classes of road users to provide themselves with red rear-lights, which has resulted in many accidents and in great danger to all classes of road users; and what action he proposes to take in the matter?
Yes, Sir, I am aware that the lighting of road vehicles is now governed by pre-War requirements. The carrying of rear lights on cycles is no longer compulsory, and fresh legislation would be required to make it so. I hope there will be an opportunity during the next Session to introduce legislation deal-with the whole question of the regulation of road vehicles.
Is it the view of the Ministry of Transport that in the interests of all traffic it is desirable that rear lights should be carried?
It was the view of the Departmental Committee which inquired into the matter.
Tooting Junction Railway
asked the Minister of Transport whether he is aware of the inconvenience and hardship caused to the residents of Tooting, Mitcham, and district by the continued closing of the Tooting Junction railway; and can he bring pressure to bear on the railway companies concerned to reopen the stations and work this railway at an early date?
I am aware of the existence of a demand for the reopening of this line, and I am informed that the railway companies concerned have the question under consideration at the present moment.
Will the hon. Gentleman bring pressure to bear on the companies for an immediate decision on the matter?
I can do nothing more than make recommendations to the railway companies. The Minister of Transport has no power to make an Order, I would remind the hon. Gentleman that the public have very much enlarged powers for securing adequate facilities under the Railways Act.
Is not the company under an obligation to run a parliamentary train?
I should like notice of that question.
Week-End Tickets
asked the Minister of Transport whether he has received any reply from the railway companies as to granting pre-War conditions for week-end tickets, namely, for same to be available from Friday till Tuesday, in order to prevent the overcrowding of trains which now takes place on Saturdays and Mondays, the days on which such tickets are now available?
I am still in communication with, the railway companies in regard to this matter.
Canals and Waterways
asked the Minister of Transport what progress has been made in opening up the canals and inland waterways to traffic; and whether any fresh work is contemplated in the immediate future?
The whole question of the future development of the inland waterways of the country is still under consideration by a Committee presided over by the hon. Member for Ladywood (Mr. N. Chamberlain), and, pending the receipt of their final report, it is not possible to give consideration to the matter in general. The Committee have, however, made an interim recommendation that part of the improvement of the River Trent contemplated in the Nottingham Corporation Act of 1915 should be proceeded with, and I am informed that the Nottingham Corporation have already commenced operations, and that their application in respect of the work in question to the Unemployment Grants Committee for a Government grant for the relief of unemployment will receive sympathetic consideration.
Is it not a fact that the subject referred to this subsequent Canal Committee had already been reported upon by the Royal Commission appointed by the present Prime Minister in 1906, and that the hon. Gentleman therefore has all the information he can possibly want?
Yes, but between 1906 and the present year there have been very great changes in the financial conditions.
Is the hon. Gentleman not aware that, although the Commission was appointed in 1906, it was not finished for many years after?
Under these new Unemployment Bills, will grants be available for such works as the widening of the Trent between Newark and Nottingham?
I have already indicated in the answer that the Committee presided over by Lord St. Davids is giving sympathetic consideration to the question of financing such schemes.
Is nothing else to be done beyond this River Trent canal scheme?
Coal Industry
Vivian and Tillery Collieries
asked the Secretary for Mines whether he is aware that the management of the Vivian and Tillery collieries, under the Ebbw Vale Steel, Iron and Coal Company, withdraw the firemen from the mines daily at 12 noon; that the miners are not withdrawn from the mines before 2 p.m.; and that therefore the miners are down these mines two hours daily without the protecting watchfulness of the firemen; and, in view of the fact that these are gaseous mines with bad roofs and sides, will he see that this dangerous practice is discontinued, so that the workmen can have the protection afforded by a fireman during the whole time they are at work in the mine?
I am aware of the facts stated in the question, which arise out of the statutory reduction of hours of employment underground. The work is supervised, after the firemen have left, by three under-managers and eight overmen, and competent persons are appointed to carry out the provisions of General Regulation 61. In these circumstances there is no contravention of the Coal Mines Act or Regulations, and I am not in a position to insist on the presence of firemen. I agree generally, however, with the hon. Member that it is desirable, if possible, that a district should never be left without a fireman, and the whole question is engaging my attention.
Output and Prices
asked the Secretary for Mines whether he can give the weekly production of coal for the month of September; how the same compares with the pre-stoppage figures of production; if there has recently been any great reduction in the price of coal supplied to manufacturers and also to household consumers; and if there is any probability of still further reductions to all consumers in the price of coal?
The average weekly production of coal at mines in Great Britain during September was 4,126,900 tons as compared with an average production of 4,109,200 tons per week during March last. As compared with the prices ruling at the date of decontrol, considerable reductions have taken place in the prices of the inferior brands, e.g ., slacks, which are principally used by manufacturers. The average price over the whole country of the better qualities of coal (including household) has dropped only slightly, although in certain districts, notably in South Wales, there has been a marked fall. The future course of prices must depend upon general economic conditions.
Can the right hon. Gentleman state whether the amount of coal per head per week has been increased or reduced? When the right hon. Gentleman is giving information, would it not be well to give the figures per head per week?
I am giving the information asked for in the question. If the hon. Member will put down a question, I will try to ascertain the answer to it. Of course, any comparison between the present time and even March is apt to be misleading, because neither of them can be said to be a normal time.
Subsidy
asked the Secretary for Mines how much of the £10,000,000 subsidy to the mining industry, voted under certain conditions by the House in last June, he will be able to return to the Treasury?
The terms of the Vote limited expenditure to the sum necessary to make good certain specified deficiencies in wages during July, August and September, and there is therefore no question of returning money to the Treasury. The sum spent will probably not exceed £7,000,000, but I cannot give an exact figure, as some claims have not yet been received and those paid to date are subject to audit.
Questions
Naval Officers, Marriage Allowances
27 and 108.
asked the Prime Minister whether the Government have now come to any decision with regard to marriage allowances to officers in the Royal Navy; whether the decision refers to temporary or permanent allowances; and when a public announcement will be made;
The hon. Member asked the Chancellor of the Exchequer whether the Admiralty have passed on to his Department any scheme for the payment of marriage allowances to naval officers; and, if so, can he say whether the Treasury has yet dealt with the matter?
I propose to await the Report of the Committee on National Expenditure before coming to a conclusion on the proposals of the Admiralty.
Has the right hon. Gentleman received any proposals from the Admiralty? I asked whether the Admiralty have passed on any proposals to him?
The question put to me is: Have I come to any decision? The answer I have given is, I think, entirely apposite to the question.
asked the Parliamentary Secretary to the Admiralty whether he can make a statement about the payment of marriage allowances to naval officers?
I regret I cannot add anything to the reply given to-day to a question on this subject by the hon. Member for Devonport.
I did not hear that reply.
Ireland
Correspondence (Publication)
asked the Prime-Minister whether he will give directions that the letters and telegrams which recently passed between the Prime Minister and the Member for East Clare, on the subject of Ireland, shall be published in the form of a White Paper, so that this correspondence may be readily accessible to Members of this House and to the public?
Yes, Sir. The earlier correspondence relating to the proposals of His Majesty's Government for an Irish settlement was published in Cmd. Paper 1470, and I will arrange for the issue of a further White Paper containing the subsequent correspondence.
Will that White Paper contain the last telegram sent by the Member for East Clare to His Holiness the Pope?
We have-nothing to do with that. This correspondence is between His Majesty's Government and the Member for East Clare.
Is it not desirable that His Majesty's Government should have something to do with it?
Can the right hon. Gentleman assure us of the issue of this correspondence at the earliest date?
The hon. Gentleman has had a complete answer in the affirmative.
I am inquiring, on a point of Order, as to when the issue of this correspondence will take place.
Sinn Fein Colours
asked the Prime-Minister whether it is under the terms of the truce that the Sinn Fein delegates display the colours of the Sinn Fein republic over the house occupied by them in London?
Before the Prime Minister answers that question, may I ask him whether there exists any such republic as that referred to in the question?
I should not have thought it necessary for my hon. Friend to put that question.
I am assured that the Sinn Fein colours are not displayed over the house occupied by the Sinn Fein delegates in London.
Is it not a fact that over the doorway of 22, Hans Place, the Sinn Fein colours have been displayed for the last ten days to the provocation of the people who live in that neighbourhood?
If that be the case, I quite agree with the observation of my hon. Friend. I cannot imagine why all these follies are being perpetrated at a time when there is a real desire to negotiate peace. It seems as though some people were doing their best to make that impossible.
Will the right hon. Gentleman convey to the delegates over here that it would be desirable to remove these colours forthwith?
I am assured they are not there.
They are there now. These are the enemies of this country.
Mr. De Valera (Telegram to Vatican)
( by Private Notice ) asked the Prime Minister whether his attention has been called to the telegram sent to the Pope by Mr. de Valera, which has been published in a special edition of the Sinn Fein "Irish Bulletin," in which Mr. de Valera repudiates allegiance to His Majesty the King, described by him as "the British King," on the part of the people of Ireland, and reiterates that the independence of Ireland has been formally proclaimed by the elected representatives of the people of Ireland and ratified by subsequent plebiscites; and whether under these circumstances the Government intend Co proceed with the conference with the delegates from Southern Ireland, who have themselves taken an oath of allegiance to an Irish republic?
I have read the telegram referred to by my hon. Friend, and its publication, especially in the middle of peace negotiations, constitutes a grave challenge. The position of the Government on the question involved in that telegram has been made abundantly clear. We do not propose to recede from it and the conference cannot proceed on any other basis.
Sinn Fein Courts
( by Private Notice ) asked the Chief Secretary for Ireland whether his attention has been called to a notice dated 17th instant, and purporting to come from Nicholas Crosbie of Mullingar, describing himself as Registrar, in which persons are summoned to appear for the hearing of cases brought against them at a Sinn Fein Republican Court to be held in Mullingar County Hall on 25th instant; and whether he will take immediate steps to prevent the holding of the illegal so-called court?
The answer to the first part of the question is in the affirmative. As regards the second part, if the facts are as indicated, the court will not be held.
The courts are being held.
Ex-Service Men
Government Departments
asked the Prime Minister whether the recommendations of the Lytton Committee with reference to the employment of ex-service men have been accepted by the Government; whether any agreements have been entered into by Ministers or Whitley Committees contrary to these recommendations; and, if so, whether the recommendations of the Lytton Committee or the individual agreements of Ministers and Whitley Committees are to be carried out?
I have been asked to reply. The answer to the first part of the question is in the affirmative. So far as I am aware, the recommendations of the Committee in regard to the employment of ex-service men are being carried out in their entirety.
If I can show that certain officers are not carrying them out, will the right hon. Gentleman agree to give me his influence to see that they are carried out?
If the hon. and gallant Member will let me know the officers concerned in the implication, in which he alleges that orders are not being carried out, I will communicate with them.
Is it not a fact that the evasion of Treasury instructions issued to certain Departmental heads is positively notorious?
Will the right hon. Gentleman see that his instructions are really carried out?
I have already given my opinion in regard to that.
Is there any truth in the statement contained in the question that the Whitley Councils have come to certain decisions? I know of none.
I do not know of any.
asked the Prime Minister if, in view of the dissatisfaction existing amongst ex-service men at the continued employment of conscientious objectors and of such a large number of non-service men and women in the different Government Departments, he will agree to set up at once a small Committee of Members of this House to inquire into and report on the whole matter?
The arrangements of the appointment of ex-service men to posts, whether temporary or permanent, in the Civil Service have been the subject of prolonged consideration by a Committee, under the chairmanship of the Under-Secretary of State for India and containing amongst its members two Members of this House. All the recommendations made by the Committee, in regard to this question, have been accepted by the Government and have been put into force. The employment of conscientious objectors has continued only in those cases in which men already holding permanent posts in the Civil Service have established a right, given them by Statute, to exemption from military service. The number of cases is small, about 230 in all. In the circum- stances I do not consider that any useful purpose would be served by the appointment of an additional Committee.
Are we to understand that by Statute it is impossible to dispense with the services of these conscientious objectors, and further, may I ask if the Government consider they are carrying out their honourable obligations to ex-service men while conscientious objectors are employed?
I do not profess not to share the prejudice of my hon. Friend with regard to conscientious objectors, but the House will remember that by an Act passed in this House leave was given to these people under certain conditions to refuse to serve or else to take alternative service. Accordingly the right has been recognised by this House for people to take such objection, and under these circumstances it is very difficult to say you are entitled to discharge a man who has exercised the right which this House has deliberately given to him.
Is my right hon. Friend aware that the Lytton Committee, to which he has referred, did not have anything to do with this particular problem of the permanent servants, and cannot he take extraordinary measures to put right a matter that is literally revolting the conscience of the nation, that is to say, retaining conscientious objectors whilst ex-service men, through no fault of their own, are being thrown out on to the street to starve?
I cannot by administrative action do violence to a Statute passed by this House. If the House wish something different to be done from that which they previously decided, they must take definite action themselves to that effect.
Will the right hon. Gentleman use his influence with the Government to get that Statute rescinded?
No Member has a right to ask me to use my influence with the Government; that is not a question which ought to be put to me.
Seeing that these men had the protection of the State during the War, ought they not to dispense with further generosity from the State in time of peace?
Who made your munitions?
Is there any reason why they should be privileged?
Is it not a fact that the Statute to which the right hon. Gentleman refers is entirely confined to giving these men the right to refuse military service or else to engage in alternative service, and what in the world has that got to do with their employment in Government Departments? If it comes, as it has come, to a question of who shall be retained and who shall be dismissed from Government service, why should they be given a preference over men who have served?
My hon. Friend really misunderstands the situation. These are people who were in Government service as permanent servants—permanently established civil servants. Accordingly, being given the opportunity for alternative service, they did that alternative service. They have remained there as permanent civil servants. There are conditions and rules under which you may dismiss permanent civil servants, but once the House has decided that people might under certain conditions refuse to go to the War, there is no ground on which they can properly be discharged. Really, the House must recognise my administrative difficulty, and if they wish other action to be taken, they must determine upon it in a definite way.
On a point of Order—
I think the right hon. Gentleman has been very liberal in his answers.
Questions
British Internees, Germany (Claims)
asked the Prime Minister whether he is aware of the case of John Whitwell, a British subject who was domiciled in Germany on the outbreak of war and was interned in Ruhleben; whether he is aware that Mr. Whitwell has entered claims for compensation for injury to health, loss of machinery, and property at Lubben, etc.; that Mr. Whitwell is broken in health and without resources and has been unable up to the present to obtain any reparation; and whether, in view of the fact that many other persons are similarly placed, efforts will be made to expedite a settlement of these claims?
I have been asked to reply. The answer to the first three parts of the question is in the affirmative. With regard to the last part, I would refer the hon. Member to the latter part of the answer given to the hon. and gallant Member for the Central Division of Hull by the Financial Secretary to the Treasury on the 18th October.
Brazil (Military Service)
asked the Under-Secretary of State for Foreign Affairs whether His Majesty's Government have yet approached the Brazilian Government with a view to arriving at some arrangement for the release of persons of dual British and Brazilian nationality from their obligation of military service in Brazil?
Negotiations have been opened between His Majesty's Government and the Brazilian Government with a view to the conclusion of an arrangement of the nature indicated.
Is the hon. Gentleman aware that he gave exactly the same answer six months ago, and that at present what is happening is that persons who claim to be British subjects and who the Brazilian Government say have a dual nationality are being called up for military service, and will he call by cable for a report from His Majesty's Minister at Rio de Janeiro to say what has been done in this matter?
Are we to understand that these are conscientious objectors in Brazil?
So far as the Foreign Office is concerned, no time has been lost, but I will consider the suggestion of my Noble Friend.
Is the hon. Gentleman aware that cases have occurred where these people wanted to join the British Army and were prevented by the Brazilian authorities, and will he look into this grave scandal?
Greece and Turkey
asked the Under-Secretary of State for Foreign Affairs whether the Prime Minister and Foreign Minister of Greece are now on their way to Paris and London; what is the object of their mission; whether, in view of the lull in active hostilities in Asia Minor, the British or any Allied Government has received offers of mediation; and whether there is any early prospect of the resumption of discussions regarding the Treaty of Sèvres and peace with Turkey?
The answer to the first part of the question is in the affirmative. The object of the mission is to discuss the political situation. The answer to the third part of the question, so far as His Majesty's Government are aware, is in the negative. The answer to the last part of the question must depend on the attitude of Greece and Turkey. As the House is aware, His Majesty's Government have made repeated efforts for the re-establishment of peace. These efforts they are prepared to renew at the first favourable opportunity.
Will the hon. Gentleman see that no sanction is given to any attempt by the Greek Ministers to raise a loan in the City?
Obviously I cannot answer that
League of Nations (Mandates)
asked the Under-Secretary of State for Foreign Affairs whether any further replies have been received by the British or any of the Allied Governments, from the Government of the United States of America, with regard to the draft mandates for the A and B mandates; whether any further representations have been made by the British Government to the American Government regarding the inconvenience caused by the delay in the final approval of these draft mandates by the Council of the League; and whether this matter is on the agenda for the Washington Conference?
The only reply received by His Majesty's Government is contained in a note of 24th August, setting forth the views of the United States Government. His Majesty's Government are engaged in discussions with the other mandatories, who received a similar note, as regards the reply to be returned to it. The answer to the last part of the question is in the negative.
Can the hon. Gentleman say when he thinks the discussion between the Government and the other mandatories will be concluded, and the United States Government be given a reply?
No, but I will make inquiries. I could not name any date
Egypt
asked the Under-Secretary of State for Foreign Affairs how many meetings between the Egyptian Government Delegation and the British Government have been held to date; when the Egyptian Ministers are likely to return to Egypt; and whether a statement will be made in either House of Parliament regarding the nature and progress of the Egyptian negotiations before Parliament is prorogued?
Apart from five official meetings with the full Egyptian Delegation, there have also been numerous informal meetings both between the Secretary of State and Adly Pasha, and between officials of His Majesty's Government and members of the Delegation. The reply to the second part of the question must depend upon the course, of the negotiations which are still in progress, and, as regards the last part, I can at present make no announcement.
Will the hon. Gentleman give an undertaking that no definite conclusions will be arrived at in these negotiations until they have been submitted to this House?
Foreign Refugees (British Expenditure)
asked the Under-Secretary of State for Foreign Affairs what Armenian, Assyrian, Russian, or Serb-Croat-Slovene refugees, if any, are now maintained at Bakouba or elsewhere, in camps or otherwise, at the cost of the British taxpayer; what is the total sum expended under this head; and when all such expenditure will finally cease?
I have been asked to reply to this question. 4,827 Russian refugees are being maintained, at a monthly cost of £21,970, in Egypt, Serbia, Cyprus, Malta, and Touzla, and, in addition, expenditure is being incurred in respect of about 60 Armenians who are stranded in Egypt. Every effort to dispose of these refugees is being made, but it is not possible to state definitely when the charge will cease. As the hon. Member is aware, the sum of £540,000 was voted in the Middle East Estimates for certain Assyrian, Armenian and Russian refugees in Iraq. It is not intended to ask the House for any more money for these refugees. No Serb-Croat-Slovene refugees are being maintained by His Majesty's Government. The camp at Bakouba has been closed for some time.
As the Government mean to cease granting any allowances when the £500,000 has been exhausted, why not cease now? Since that position must arrive at a certain time, why not anticipate it?
Will it be within the province of the right hon. Member for Cambridge (Sir E. Geddes) to go into this question?
I think both my hon. Friends are under some misapprehension. The £540,000, to which I have referred, has already been voted by Parliament for an express purpose. What I said in my answer was that there was no intention to ask for any money "beyond that which has been provided for these refugees in the Vote.
As their support is to come to an end, why not terminate it now 1 Will not the circumstances be the same?
Are not some of these Assyrians, and some of these Armenians, whom this country has supported for a time, refugees from Turkish butchery, inflicted on many of their fellow-citizens, because of the support they gave to this country and our Allies in the War; and is it worthy of the dignity and honour of a great nation thus to desert those who have suffered in their behalf?
As to the first part of my hon. Friend's question, it is certainly true that they were refugees. With regard to the second part, that is a matter of opinion which he will not expect me to discuss now, beyond saying that he knows it is a matter of a great many complications, that His Majesty's Government have not lightly come to this decision, and they felt confident in arriving at that decision that it was possible to make other arrangements by which these unfortunate people might be provided for.
Corn Production Acts (Subsidy Claims)
58 & 59.
asked the Minister of Agriculture (1) the number of claims for subsidy under the Corn Production Acts which have been received from farmers in England and Wales, and the acreage of wheat, oats, and mixed corn, respectively, included in those claims;
(2) how many of the claims for subsidy under the Corn Production Acts have been investigated, and for what acreage; what is the acreage of wheat, oats, and mixed corn, respectively, by which the investigated claims have been reduced; and what is the total saving which such reduction represents?
The total number of claims received is approximately 194,000, relating to 1,937,000 acres of wheat, 2,063,000 acres of oats, and 130,000 acres of mixed corn. The investigation of the claims will not be completed for some time yet. These figures, therefore, include some duplicate and other inadmissible claims. It will not be possible, therefore, to furnish the full information desired by the hon. Member until the examination of all the claims received has been completed.
Land Drainage
asked the Minister of Agriculture how the present land drainage authorities are constituted; and, in view of the Government proposals respecting unemployment, whether it will be necessary to alter the constitution of the authorities effectively to carry out the Government proposals?
Drainage authorities are of three categories: Commissioners of Sewers constituted by Royal Warrant under the Bill of Sewers of 1531; Drainage Commissioners and Drainage Boards constituted under special Acts; and Drainage Boards constituted under the Land Drainage Acts, 1861 and 1918. Commissioners of Sewers are appointed by the Crown, while members of other drainage authorities are usually elected by the ratepayers of the drainage district. The answer to the second part of the question is in the negative.
Land Settlement
asked the Minister of Agriculture the number of men who have been settled on the land under the Land Settlement Acts from 1st January, 1919, up to 1st October, 1921?
Complete returns of Michaelmas lettings are not yet available, but the total number of men settled on the land by councils between the dates mentioned by the hon. Member is estimated to be 15,750, to which should be added 712 provided with holdings or employed on the Ministry's farm settlements. Of the total number thus settled, 14,786 are ex-service men.
Can the right hon. Gentleman give the acreage of land brought under cultivation by these settlements?
I shall require notice of that, and, in any case, most of this land has not been brought under cultivation. It was under cultivation before.
Can the right hon. Gentleman say how many more men he expects to settle on the land?
Fertilisers
asked the Minister of Agriculture what steps, if any, he is taking to ensure that agriculturists will be able to purchase artificial manures at prices that will enable reasonable quantities to be used next season without adding unduly to the cost of production and thus help to lower the cost of living?
The prices at which fertilisers may be sold in the United Kingdom are not now controlled by the Government in any way. Supplies of all the principal fertilisers are, it is understood, more than sufficient to meet the demand, and, as my hon. Friend is probably aware, considerable reductions in price have taken place during the last few months. I have no reason to suppose, therefore, that farmers will be asked to pay unreasonable prices for their fertilisers next season.
Is not basic slag three and a half times what it was before the War, and is not that the result of a ring formed during the War? [HON. MEMBERS: "No, no!"]
It is coming down very considerably, but I cannot give the exact figures—
I can tell you.
But if my hon. Friend wants further information, I shall be glad to get it.
Potato Diseases
asked the Minister of Agriculture whether he is aware that very large quantities of potatoes are being offered from countries where there is no inspection of potatoes for wart or other infectious diseases; and will he take such action as will protect this country from the danger of such diseases being spread over very large areas now quite free from such contamination?
Arrangements are made in most countries for the inspection of potatoes which are intended for export and consignments are then accompanied by certificates of health issued by the Government of the country concerned. By an Order of the Ministry issued under the Destructive Insects and Pests Acts which came into operation on the 1st October, 1921, potatoes which are imported into this country without an official certificate as to their freedom from disease, are liable to exam ination, and if found to be unhealthy may be either re-exported or destroyed.
Is there any person capable, by examination, of saying whether or not these potatoes have infectious disease?
Yes, I think there are many persons so capable.
Housing (Office of Works Schemes)
asked the hon. Member for the Pollok Division of Glasgow, as representing the First Commissioner of Works, whether he can make a statement as to the number of housing schemes on which the Office is still engaged and the number which have been completed?
The Department is engaged on 47 schemes for 32 local authorities. Four schemes have been completed.
National Health Insurance Acts
asked the Minister of Health whether, in view of the dissatisfaction with the working of the National Insurance Act, he will consider the advisability of its early removal from the Statute Book?
I am aware that there is periodical criticism of certain aspects of the scheme embodied in the National Health Insurance Acts, but on the whole all the evidence tends to show that National Health Insurance has been most beneficial in its operation. While I am considering the advisability of inquiring what improvements may be effected in its working, there can be no question of repeal.
asked the Minister of Health what were the total contributions of the State, employers and employed, respectively, under the National Health Insurance Acts for the last complete financial year; and what were the total administrative and working expenses under all heads for the same period apart from payments made in respect of medical attendance, drugs, and other benefits?
The totals (in round figures) for the year 1920, as respects England and Wales, are as follow:—
Rating (Incidence)
asked the Minister of Health whether he received the resolution passed at the annual conference of the Urban District Councils' Association, drawing attention to the embarrassment the high rates which the local authorities are compelled to levy in order to enable them to fulfil obligations which have been imposed upon them in respect of services which are of a national or semi-national character is causing ratepayers throughout the country, and urging that the financial burden of carrying out many of such obligations should be forthwith transferred from the local authorities to the Imperial Exchequer, and that the incidence of rating should be reviewed with the object of putting it on a more satisfactory and equitable basis; and, if so, what action the Government proposes to take in regard to the matter raised in such resolution?
I have received the resolution referred to, but I fear I cannot hold out any expectation of early legislation upon the very large questions to which it refers.
Friendly Societies (Rules)
asked the Minister of Health if he is aware that the Registrar of Friendly Societies has refused to examine the revised rules of the Horsham Permanent Benefit Building Society because they were submitted to him in duplicated typewritten copies and not in print; and whether, in view of the present high cost of printing, he will give instructions that the Regulation shall be altered so as to permit the building societies submitting copies of rules or revised rules in a typewritten form?
I have been asked to reply to this question. The Building Societies Act, 1874, requires the rules of a society to be printed, and therefore the suggested alteration of the Regulation would not relieve a society from the cost of printing. The Chief Registrar informs me that, apart from this, the submission of rules in typescript in the first instance would involve a fresh examination of the whole of the rules when they were finally submitted for registration, and this would cause undue delay and is impossible in the present pressure of business in the Department. In these circumstances the Home Secretary is unable to alter the Regulation.
Hungary
Ex-Emperor Karl
( by Private Notice ) asked the Prime Minister whether he is able to give the House any further information with regard to the Karlist attempt in Hungary; whether any further movement has been made by the Governments of the Little Entente, and what available forces they have at their disposal; and whether the Governments of Great Britain, France, and Italy are in entire accord in giving full support to those of Czecho-Slovakia, Rumania, and Yugoslavia to terminate the present crisis as rapidly and effectively as possible?
( by Private Notice ) asked the Prime Minister what the latest news is from Budapest, and how it is proposed to support Regent Horthy or whoever may be opposing ex-Kaiser Karl, ex-Premier Friednisch and Colonel Otzenburg's officer bands?
( by Private Notice ) asked the Under-Secretary of State for Foreign Affairs what information he has with regard to the attempted coup d'état in Hungary by the ex-Emperor; and what steps His Majesty Government is taking to deal with the situation?
( by Private Notice ) asked the Prime Minister whether he has any information to give the House about events in Hungary; whether the Government of Czechoslovakia have presented an ultimatum at Budapest; and, if so, what steps under Article 17 of the Treaty of St. Germain or otherwise the Government are taking to prevent the outbreak of a new war?
According to information which I have received, the ex-Emperor arrived at Sopron, in West Hungary, by aeroplane on Friday last, 21st October, and received the allegiance of the Hungarian military and irregulars who were still in the neighbourhood. A message despatched from Budapest on Saturday evening reported that the ex-Emperor had arrived at Raab with 1,500 men. At 11 a.m. yesterday he was reported to be only a few miles outside Budapest and fighting was said to be proceeding. Budapest itself was strongly patrolled and there was no disorder. Yesterday afternoon the Hungarian Government stated that the situation was steadily improving, that: the Karlists had been driven further back, and that the arrival of fresh troops afforded some prospect of being able to surround the ex-Emperor's force.
The attitude of the Allied Governments remains firmly opposed to the restoration of any member of the Hapsburg dynasty to the throne of Hungary.
On the morning of Saturday, 22nd October, the Allied Ministers in Budapest made a joint representation to the Hungarian Government recalling previous declarations on the part of the Allied Governments to the effect that they would not tolerate a Hapsburg on the throne of Hungary and calling upon the Hungarian Government to take forthwith all necessary measures to secure once more the expulsion of the ex-Emperor from his former dominions.
On the same day the representatives in Budapest of the Governments of the "Little Entente" made similar representations reserving to themselves the right of taking the necessary steps to maintain the peace of Central Europe which is now threatened.
I am unable to state the numbers of the forces at the command of the "Little Entente," but they are considerable.
The Hungarian Government have replied to the representations of the Allied Ministers declaring that they will conform to the desires of the Allied Governments and that they firmly maintain the point of view laid down by law that the ex-Emperor cannot exercise sovereign rights in Hungary and that he will be obliged to leave the country forthwith, the necessary steps to that end having already been taken.
Can the Prime Minister inform us whether any representations have been made to the Swiss Government to see that undertakings given to them are carried out?
The Federal Government stated that the ex-King accepted the express condition that he would abstain from all political activity, and that he would inform the political Department of any projected departure, at least three days before. On the occasion of representations being made to him, the ex-King re-affirmed to the Department on 5th October, 1921, through a messenger sent specially for the purpose, that he considered himself as always bound, without reserve, by the conditions made known to him at Hertenstein on 18th May, and accepted by him. The Federal Council, to their deep regret, state that they find themselves obliged to say that by his action the ex-King has abused the rights of asylum accorded to him by Switzerland, and at the same time he has broken solemn pledges.
May I ask the Prime Minister whether it is at all likely that the powers of the Little Entente will invade Hungary without obtaining the sanction of the Supreme Council, or are they acting independently of the Supreme Council?
Can the Prime Minister say if by any chance there is any evidence of the population desiring the return of the ex-King great care will be taken to see that the principle of self-determination is observed?
Can the Prime Minister state whether any action will be taken to restrain premature action by the Powers of the Little Entente?
Would it not have been better if the Entente Ministers had instructed the members of the Little Entente to surround the King, capture him, and keep him?
Forestry Bill
"to modify temporarily the provisions of Section three of The Forestry Act, 1919," presented by Sir ARTHUR BOSCAWEN; to be read a Second time to-morrow, and to be printed. [Bill 223.]
Orders of the Day
Unemployed Workers' Dependants (Temporary Provision) Bill
Order for Second Reading read.
I beg to move, "That the Bill be now read a Second time."
This Bill, as the House knows, is designed to fill one part of a many-sided endeavour. We are all agreed that there is only one permanent and root remedy for unemployment, and that is to get trade and industry going again on an economic basis. That is our chief and main objective. Our view is that we can move towards it in some degree, at any rate, by operating certain schemes debated last week, and which are to be examined in closer detail to-morrow. While these proposals are being pressed forward we propose to move forward along another closely related and, so far as it goes, more immediate line, namely, by providing work. Work, if it can be found or made, is by common consent incomparably to be preferred to what are styled "doles." Therefore, both the Government and the local authorities must do what they can to extend the policy initiated a year ago of mutually co-operating in the provision of relief works of a useful and productive character.
That effort is being pressed forward with all expedition. On Thursday last I said that 46 formal applications had been received from 28 local authorities in respect of this particular effort. I wish to say now that the number is 71 formal applications from 52 local authorities. Meanwhile, for those who cannot, do what they will, immediately provide work, there is the urgent necessity to bring such succour as our grievously embarrassed financial position renders possible. It is to that end that this particular feature of our effort is designed. We face the winter—the second in succession of hardship for so many of our people—with the prospect of 1,750,000 industrial workers being out of employment, including 1,370,000 men, and 300,000 women. Throughout the coming winter we must estimate that there will be on an average not less than 1,500,000 persons unemployed. Here our plans provide assistance to the boards of guardians, many of whom must be getting to the end of their resources. There is also the Unemployment Insurance Act. That Act has been of the greatest assistance during these long weary months of depression, and let me once more ask those who rather loosely used the word "dole" in connection with the benefit it furnishes, to please remember that three-fourths of the help it brings is contributed by the workpeople and the employers themselves.
As the House is aware, a new period of 16 weeks' benefit, which will be made 22 weeks as necessary, starts at the close of next week. The benefit is 15s. for the men and 12s. for the women. This is the second winter in succession, and the trades union help is pretty well exhausted. The savings of the workers and even their household resources have been utilised and pressed into the service of providing daily maintenance. We must, during the winter, the first breath of which is already upon us, try to do a little more along the lines of the Insurance Act for married men, and for women with little children dependent upon them.
Will the right hon. Gentleman tell us now what is the position of the Government in regard to Ireland on this subject?
4.0 P.M.
I will certainly do so before I sit down, and I have already promised to do so. This is the second winter. The assistance forthcoming in the first has been nearly exhausted, and we feel bound, as far as our strained resources permit it, to do a little more along the lines of the Insurance Act for married men and women and children dependent upon them. It is not much which we can do. The state of the National Exchequer settles that. I bring my worries to the Chancellor of the Exchequer, and I come away more sorry for him than I am for myself. However, this is what we propose to do: We take the employers and the employed persons now covered by the Insurance Act, and for six months we ask them to bear a further contribution, the proceeds of which, augmented by a substantial grant from the State, shall go to the women and to the children. I know that the weekly contributions are already very heavy. The employer in respect of each workman is already paying 1s. 1d. per week for unemployment and health insurance. I quite realise that the revival of industry will not be hastened by adding to the very heavy burdens which industry is already carrying—that is clear—but this part of our proposal, this temporary expedient in a grave emergency, must be weighed in its relation to other parts of our general scheme, and in so far as they, the other parts of our many-sided endeavour, succeed—and who will deny that they must help if they move in the right direction—we are minimising the necessity for the provision which I am now proposing.
I said that the employer is already paying 1s. 1d. per week for health and unemployment insurance. The workman himself, if he be lucky enough to be in work, is paying 1s. a week for unemployment and health insurance, to say nothing of his trade union contributions and special levies. Both employers and employed persons know that their contributions are going in the main to help a third man, the man who for the time being is down and out altogether, and who, so far, has had no opportunity, though he will have, of doing his bit towards building up the fund from which at present he is drawing insurance benefit. Through the Insurance Act I have asked them, employer and employed, to come to his assistance during this long depression, and they have not passed by on the other side. The way that these contributions have been paid by both employers and employed during this distressing period of depression confirms me in the view that, though we greatly regret the necessity, we can with confidence make this further appeal to the spirit of comradeship, of mutual solicitude, and helpfulness which characterises our people. I quite appreciate the fact that the trade unions have already faced pretty heavy levies. What am I asking them to do? I am asking all those who have the good luck to be in work to pay 2d. a week for six months, for it may be a week or two more—call it 5s. in all.
It is more than that.
I beg the hon. and gallant Member's pardon. That is what I am asking them to pay—5s. in all— in order that they may assist tens of thousands of wives and children of their comrades who are out of work to get during the winter 5s. a week for the wife and 1s. each for four children. Of course, their twopence a week will not do that. Their twopence, in the case of the men, will furnish two-sevenths of the available fund, the other five-sevenths being provided by the State and the employers. In the case of the women, their penny will contribute a fourth of the entire fund available, the other three-fourths coming from the employers and the State.
Are the men employed on relief work to pay?
If they are in an insurable trade and at work they will pay their contribution.
What about the man who gets half-a-day a week?
My hon. Friend has put that case to me before. If he is in an insurable trade and at work he will pay under the Act. Notwithstanding his other testimony, the men for whom he pleads so solicitously have not, according to the records, done so very badly out of the Act. We propose that for six months the men should pay 2d. a week, the employer 2d. a week, and that the State in respect of those contributions should add 3d. a week, and that the women, boys, and girls should pay 1d. a week, the employer 1d. a week, and that the State in respect of those contributions should provide 2d. a week. That will give us about £218,000 a week, or, unless of course unemployment becomes very much worse, about £5,500,000 in the six months. Of that the employers will contribute, roughly, £1,500,000, the workmen about £1,500,000, and the State about £2,500,000.
We might do one of two things with this fund. We might make grants in bulk to the hardly hit areas which could be utilised for the purpose of dispensing food or otherwise. On the other hand, we might make payments additional to the Unemployment Benefit payment direct week by week to the married men and to women with children dependent upon them. We have examined the former proposal with the greatest possible care, but we think that so much time would be involved in getting such a scheme going that we are bound to reject it. The whole efficacy of this proposal is that aid shall be immediately available in the weeks immediately before us, and we have therefore fallen back on this plan. We have got pretty complete machinery in being at the Employment Exchanges for the purpose I am now discussing. That machinery would require augmentation, say 10 per cent. Our plan is that the Employment Exchange clerk who pays out the 15s. or 12s. benefit, as the case may be, should, directly we can get this scheme going, pay out also, on proper evidence of eligibility, the additional 5s. for the wife and 1s. for each dependent child up to four, and that those eligible to receive those, additional benefits should get them so long as they continue to get the unemployment benefit.
The actuary estimates that this method of additional assistance will be given week by week through the winter in respect of somewhere about 700,000 wives and very nearly double as many children. It really is worth doing. As I said last Thursday, the first payment for the new period of unemployment benefit will be made for half a week on Saturday week next, 5th November. It would not be possible for me, even if the House passes this Bill through all its stages this afternoon, to start this Unemployed Workers' Dependents Fund so soon. What I hope to be able to do is this. The first compulsory contributions to this fund would commence as from 7th November, and the first payment of one week's grant to be made out of it would be made at the close of the week ending 19th November. Therefore I must make this point clear. The number of weeks' help from this fund would be one less than the number of weeks' benefit paid from the Unemployment Insurance Fund, because I should not be able to get it going until a week after the other started. I want to make that quite plain, so that there should be no misunderstanding on the part of the poor people on whose behalf we are endeavouring to do some small thing. That is the scheme, quite shortly. It is objected that it does nothing for two classes outside the Insurance Act, namely, domestic servants and agricultural labourers. As regards the former, there is something better than this open to domestic servants, and that is work. [HON. MEMBERS: "Oh!"] Ask your wives. The operations of the Employment Exchanges, of course, do not cover the whole field in regard to domestic servants—very far from it—but during the year which has just closed we have had notified to us 270,000 vacancies for domestic servants in private residences and elsewhere, resident and non-resident. It is nothing like the total number of vacancies, because they are not registered with us, but we have only filled 158,000.
They will not go.
Would yours?
It is very extraordinary the amount of heat to which this domestic servants' question gives rise on both sides of the House. We have had registered with us 270,000 vacancies, which is not by any means the total, but only 158,000 vacancies have been filled. We have had nearly three times as many registrations, and I am afraid that the difference between the registrations and vacancies filled means, among other things, that many who are registered for domestic service are really not suitable.
Hear, hear!
I am glad to have that confirmation from one who ought to know. It is largely the result of the War and the munitions factory. With the help of the Central Committee on Women's Training and Employment we have tried to train a few girls, and it is very curious that that effort appears to be singularly wasted to those who claim to reflect middle-class opinion. However, this much remains manifest, when all the facts of the situation are reviewed. There is plenty of work in domestic service for the girls on whose behalf complaint is made that, being outside the Insurance Act, they are not included in this scheme. I will now take the case of the agricultural labourer about whom the hon. and gallant Member for the Isle of Ely (Captain Coote) spoke so eloquently last week. He is out of the Insurance Act, and therefore out of this scheme. Why is he out of the Insurance Act? Because until quite recently he did not want to come in. My hon. Friend the Member for Welling-borough (Mr. W. R. Smith)—I am sorry he is not here—in referring to the case of the agricultural labourer last Wednesday, said:
"The hon. and gallant Member for the Isle of Ely (Captain Coote) in referring to the position of the agricultural labourer who might be out of work, commented on the fact that for the moment he is different from the mass of the industrial class by virtue of the fact that he is outside the provision of the Unemployment Insurance scheme. He seemed, however, to be under the impression that that is the fault of the labourer himself because he refused to come within the scope of the Measure. I do not know on what ground he bases that assumption."
I was referring to information which I received from the Department that a request was made to the body representing the agricultural labourers asking them if they would like to come under the operation of the Act and that they refused to do so.
My hon. and gallant Friend made kindly references to the case of the agricultural labourer, and my hon. Friend the Member for Welling-borough, in commenting on those references, proceeded to say:
"I do not know on what ground he bases that assumption. So far as my knowledge of the matter is concerned the agricultural worker was never approached nor asked by the Government, nor was it considered whether or not it was wise for him to come under this scheme. Nor if the scheme is not altogether applicable to him was he given an opportunity of making suggestions as to whether some other provision might be made."—[OFFICIAL REPORT, 19th October, 1921; col. 200, Vol. 147.]
That was the comment of the hon. Member for Welling-borough. Now the Agricultural Wages Board for England and Wales appointed a Committee on 2nd December, 1920, to inquire into and report on the extent to which unemployment insurance might be made applicable and beneficial to agricultural workers. The Committee consisted of two representatives of the employers and two of the workmen, with Sir Henry Rew as Chairman. Their conclusions are summarised thus:
Will the right hon. Gentleman give the names of the Committee?
I am afraid I cannot at the moment. Sir Henry Rew was the Chairman. The Report is dated 12th April, and it is signed by all the members of the Committee, one of whom is my hon. Friend the Member for Wellingborough.
Is not my right hon. Friend aware that in respect of certain other trades now included under the Insurance Act exactly the same sort of arguments were put forward, but now that they are under the Act nothing is heard of the opposition to it.
I think my right hon. Friend has not followed my argument. I was pointing out that the hon. Member for Wellingborough was commenting on the remark of the hon. Member for the Isle of Ely, and I have read the findings of a Committee on which there were both employers and representatives of labour, a Committee which found there was no evidence that a special scheme for agriculture under the Act would be acceptable to either side. One of the signatories of that Report, which was unanimous, was the hon. Member for Wellingborough. It is true that one of the two representatives of labour (Mr. Dallas) made the following reservation:—
"I have signed the Report as I agreed with it on the whole, but with regard to paragraph 19 I wish to put on record that although the Report is correct in saying that 'no large body of agricultural workers has protested against exclusion from the Act,' I believe that in some districts of different counties, there is an undoubted desire to be so included."
That, I venture to say, does not much weaken the effect of the conclusions. It is clear that at any rate as recently as April last there was not only no general demand for the inclusion of agriculture, but that a great deal of opposition would have been met with had any attempt been made to include it.
Will the right hon. Gentleman say if it is not the fact that there is more unemployment in the agricultural industry to-day than in any other trade, and will he also tell us what are his proposals for dealing with it?
I should not think there is more unemployment, but I can give the Noble Lord the information we have on our registers, which are by no means complete. I only give the figures for what they are worth. The returns come from very scattered districts. The men are a long way from the Exchange's, and do not go to them because they are not under insurance.
Has not the right hon. Gentleman abolished them as well?
To some extent. I can tell the Noble Lord that on the 2nd September the registers for the United Kingdom showed 24 shepherds, 398 cattlemen, 340 horsemen, 48 timber fellers, 2,153 gardeners, 51 machine attendants, and 2,396 agricultural labourers on the unemployment register.
In two counties alone are there not more agricultural labourers out of work than these figures indicate?
I can only give the figures in my hand, and I have safeguarded the position by admitting that they do not cover the whole case. My hon. and gallant Friend the Member for the Isle of Ely is anxious about the winter. We have tried to meet the situation by a considerable extension of our scheme of assistance for relief works. We have got proposals for afforestry, land drainage and improvement, and light railways. These are being and will be pushed forward vigorously. A number of schemes already have come in—there were five last Thursday night, and others, I understand, are on their way. We hope and believe that the extension of relief work in the direction of afforestry, land drainage and improvement, and light railways will help, not to put it too high, to meet the difficulty. There are three or four features of this Bill that I think I ought to allude to before I sit down. I select them as being important. Clause 6 provides, first, that grants made from this fund shall be taken into account in determining whether outdoor relief shall be granted; and, secondly, that during the operation of this temporary Measure Section 27 of the Unemployment Insurance Act, 1920, shall be suspended.
Let me explain what that means. In determining whether or not an applicant is to receive outdoor relief, those responsible for granting it must take into account, if this is passed, all the unemployment benefits which the person is receiving, and any assistance from the Fund. Under the Act of 1920 the insurance benefit is only taken into account in so far as it is more than 10s. The argument put forward in support of the existing practice is a very old one here. The question was debated in 1894 on the Outdoor Relief (Friendly Societies) Act, and again in 1904, and it was also embodied in the 1911 and 1920 Insurance Acts. The argument was this, that insurance as a result of contributions paid should not go in relief of the rates. That is a broad proposition with which old Members here are very familiar. We think now, however, that in view of the urgent need of making the available money go as far as possible, the emergency payments under this Bill, together with the full amount received as unemployment benefit—that is not cutting out the 10s.—should be taken into account for the time being in determining the amount of outdoor relief to be paid. Therefore the proviso to Clause 1, Subsection (1), lays it down that no grant from this fund shall be payable in respect of the wife of an unemployed workman in cases where the wife is herself receiving the unemployment benefit or is in regular wage-earning employment. That, I submit, is only reasonable. Our mutual resources are severely strained, and we must see that the little help we can give shall be conserved, as far as possible, for cases of real hardship.
Is it the fact that the man or woman in that case will have to pay in exactly the same?
I will give my hon. Friend any information I can as to the effect of the proposal which I submit is only reasonable. We must see that the little help we can give shall be conserved as far as possible for cases of real hardship in the next six months. There are two particular features in the financial arrangements to which I would also call attention. The provisions of this temporary measure normally run till 7th May, 1922. "We assume that if the average number of persons unemployed week by week in the period covered is not more than 1,500,000, the contributions received will by that date balance the expenditure. If, however, unemployment is more severe, there will be a deficit in the fund on 7th May, 1922, and power is accordingly taken to make the contributions payable in such a case for a further period to meet the deficiency. I want this Act to be self-contained. The actuary estimates that if the number of persons unemployed week by week in the period averages 1,750,000, an extension of about four weeks of the period in which contributions are payable will be necessary. There is an opposite provision to the effect that any balance remaining in this fund after its liabilities are discharged shall be paid into the unemployment fund. That appears to be the fairest arrangement, for the contributors to the unemployment fund and those who benefit there from are the same class of the people as those who contribute to the Unemployed Workers' Dependants Fund.
Now, as regards Ireland. Ireland is covered by the Insurance Act, and the second special period of benefit, which will be 16 weeks, and may be 22 weeks, if necessary, will commence there on Saturday, 5th November, as hers. We did not propose, as the Bill shows, to include Ireland in this special and purely emergency Measure; but I have been pressed very hard by my hon. Friend the Member for North Armagh (Sir W. Allen) and by my hon. Friend the Member for Falls (Mr. Devlin), who have said to me, "Our workpeople are willing to pay; our employers are willing to pay; put up your share, and let them have the benefit, just as they have had the benefit of the Insurance Act." They say that particularly because, as is quite true, two great industries have been very badly hit—the shipbuilding industry and the linen industry. I say, "Why not do it yourselves?"—or rather, I did say that last Thursday night; and they say, and quite truly, "But you have not given us the power; we are not functioning." I admit the dilemma which has been created by the negotiations which are now proceeding on other matters, and it is for us to meet it. I am authorised to say that we think on reflection that we must put Ireland into this Bill, unless meanwhile, before the Bill leaves us, steps have been taken to transfer the necessary powers to the Legislatures. I am told that they will be glad to undertake the job themselves, and I cannot leave the matter in that dilemma.
Does that refer to the whole of Ireland?
Yes.
Does the right hon. Gentleman expect to get many contributions from County Clare or Donegal?
In the event of the service being transferred, will the payments be interrupted?
I certainly hope not.
We must have some exact declaration with regard to that. It would be a very serious contingency to us if, before our Parliament got properly to function, the payments were stopped.
God forbid that I should be dragged into this larger controversy.
How will you proceed?
The present insurance stamp, which is being used all over Ireland, will be overstamped by 2d., and those who pay the one will pay the other. That is the practice at present, and payments are being made and benefits are being received. We propose to continue as far as this Bill is concerned, unless meanwhile, before the Bill leaves us, steps have been taken to transfer the necessary powers to the Legislatures. My hon. Friend the Member for Shankhill (Mr. McGuffin) asks whether there will be a hiatus. After all, at the end of this line are these people who are suffering from long depression, particularly in the shipbuilding and linen industries. These are our main objectives, and whatever help we can give them we shall give; and it will be our business to see that there is no interruption.
I am quite conscious of the fact that this new scheme will throw a very heavy burden indeed upon the local employment committees and the local Employment Ex- change staffs. It will need to be very carefully and closely administered. We want the help it furnishes, as I said before, to go only to genuine cases of men who really cannot find work, and I am bound to rely very largely indeed upon the local employment committees. They are voluntary bodies composed of representatives of employers, representatives of the workpeople, and certain co-opted members including, I am glad to say, representatives of the ex-service men. They have been and are now devoting ungrudgingly a very large amount of time and effort to the work devolving upon them under the very widely extended scheme of insurance under the Unemployment Insurance Act. Their services have been invaluable. The work could not have been carried on without their assistance. They are performing a public work industriously and unostentatiously at a time of grave emergency affecting a vast number of the working population, and I am glad to take this opportunity of paying them a tribute of thanks. I feel sure that although this is another burden upon them, they will do their level best to carry out this obligation diligently and efficiently. As regards the Employment Exchange staffs, I should like to say this word on their behalf. They have been working double tides for the last 13 months, seeking with the utmost patience and sympathy to meet the claims of poor people as promptly and as smoothly as possible. They have done all that in the face of a good deal of contumely and criticism from various quarters. I wish hon. Members would accept my invitation to spend an hour in any Employment Exchange in a great industrial area, and see the sort of work that these people are trying to do. Let me thank them here, publicly, and assure them that, in making this further heavy demand upon them, I am justified, and justified only, by the patriotic way in which they have responded to my call during the long and weary period of depression we have already suffered.
Will the right hon. Gentleman kindly say one word as to the paragraph in Sub-section (5) of Clause I which provides that:
"The expression 'wife' means a wife who is living with or is being maintained wholly or mainly by her husband, and includes a person who is living as his wife with the person claiming a grant."
Are not these last words a provision in favour of immorality?
I beg to move to leave out from the word "That" to the end of the Question, and to add instead thereof the words
"whilst anxious to take every step calculated to relieve distress during the present unemployment crisis, this House cannot assent to the Second Reading of a Bill which provides inadequate assistance to some working-class families and no assistance to others, which adds to the burden upon certain industries and imposes a further tax upon a section of the workers whilst exempting from direct contribution other and wealthier classes of the community, and which fails to recognise the full obligation of the State towards every citizen deprived of the means of livelihood."
This Amendment contains in a brief form the case which I want to offer to the House against this Bill. I never heard a speech in this House, in support of any Bill, which showed so little pride on the part of the Minister in the Bill, and I venture, without any offence being intended, to describe the three parts of the speech as I heard them. Let me first say that with the closing observations of my right hon. Friend I warmly agree, and I join with him in the acknowledgments which he has properly paid to the men and women in the Employment Exchanges throughout the country, who have had very difficult tasks indeed to discharge. One part of the right hon. Gentleman's speech necessarily had to deal with interruptions and interjections which, in number and form, I have never known to be equalled on the occasion of any Second Reading speech in this House, and which denoted a great deal of anxiety and anger on the part of many hon. Members who indulged in them. Another part of the right hon. Gentleman's speech showed how ashamed is the Minister of this particular Measure as a contribution of substance to the unemployment problem.
That is not so.
Let me put it in this form. Capable as the right hon. Gentleman is in the arts of advocacy, he failed altogether to conceal, I will not say his contempt, but his knowledge of the utter inadequacy of this Measure as a serious contribution towards affording relief— and that is all it purports to do, namely, to afford some measure of relief to unemployed workers who have no other means of support at all. The third part of the speech was that part which I hope the right hon. Gentleman will forgive me for saying had nothing whatever to do with the case. All the talk this afternoon about the agricultural workers and the domestic servants can have no relation at all to a Bill which proposes to leave them exactly where they are and to give them no support of any kind. Having listened, therefore, to such a speech, I venture to trouble the House with what I think are some pointed criticisms and objections to the putting of the Bill in this form. It is true, as the right hon. Gentleman has said, that other measures are being taken under the pressure which the state of unemployment has exerted upon the Government in the past few weeks; but those measures, regarding overseas work, artificial stimulation of export trade, and the steps to be taken to carry out internal work in this country, in respect either of afforestation or of relief works in any part of the country—these, clearly, will take a considerable time before any large number of men can be absorbed in employment; and then, the Government having done their best, those measures will only absorb that class of manual workers who first of all will be attracted to building trade occupations, to open air work, and to such outside labour as manual workers commonly have to perform. A large number of the unemployed to-day, however, are not of that class, and they, therefore, will still remain on the outer fringe, having little or no opportunity of earning their living by labour in any of these openings which in due course will be afforded. I therefore put to the House the view that for these reasons, namely, that it will take a long time to afford work to a section of the workers, and that when all this is done no opportunity at all will be afforded to others, a much more substantial and comprehensive measure of relief than this should have been offered to the House by way of giving monetary assistance to those whose resources are as the right hon. Gentleman himself has said, now completely exhausted.
This, then, is not a substantial measure of relief at all. The right hon. Gentleman himself has evidently got tired of trying to amend the Insurance Act. In the middle of the present year I ventured, I will not say to taunt the right hon. Gentleman, but at least to draw his attention to the unusual number of Amendments of that Act which had been attempted. The view taken by many of us on this side of the House was that, instead of nibbling so frequently at the Insurance Act, some big job of amendment should be made of it, as could be done if the Government were so minded. The right hon. Gentleman is not proposing to amend the Unemployment Insurance Act. He is going to engraft something on it. Leaving administrative convenience aside, what is being done by this Bill is to establish a separate fund to which only insured persons are to pay contribution, that separate fund being administered more or less concurrently with and through the same agency as those who are receiving the benefit under the Unemployment Insurance Act itself, and the total which under any circumstances can be given to the most distressed family by the Bill is the weekly sum of 9s. That in pre-War values, I suppose, is worth somewhere about 4s. That is the sum total of this latest step being taken by the Government to deal with the suffering, which even the right hon. Gentleman could not keep out of his mind, with which the workers are faced in the coming winter. The household resources are gone. We reminded the Government in the middle of the summer that they were going, and the bitterness of the winter has evidently impressed that fact upon their minds.
I saw in a paper to-day an account of a Labour Conference convened in Cardiff, and there were some interruptions and an appeal was made by the chairman to a certain man to be patient. "I cannot," he said, "I am starving." That is the position in which hundreds of thousands of working men and their families are in this country to-day, and the more starved they are, the more they will be left to starve by this Bill, for the fact is that it is the class which is now getting nothing out of any Insurance Act or by any other way which will get nothing by this Bill when it becomes law. So I say, if we are to proceed upon the lines of assisting the most needy, and of assisting them first, we shall have to reverse the line of action of the Government. Apologetically—it really was not an argument; it was a pitiful appeal to us—the right hon. Gentleman says, "we must make our slender resources go as far as we possibly can." In other words, we are to give as little as we are driven to give. I put the case that people clearly are starving. I put the case that the more distressed the people may be, the greater their difficulties are, the less they will get from this Bill when it becomes law, and that is an argument to which I invite the attention of the right hon. Gentleman in the course of our succeeding discussions.
Clearly then the sum suggested by this Bill is far too low to form anything like a substantial amount of supplementary relief to anything which the workers might be given from any other sources. It imposes a further burden upon working people at a time when they are paying exceptionally heavy sums. Their contribution for Unemployment Insurance does not stand alone. It is one of very many contributions. Large numbers of these workers who have now to pay are not in full employment at all. They are only half employed. Some of them may not be employed more than two days, or one day, a week. They will have to pay their full contributions and they will have to pay their contribution to this dole, and the worst of it is that though they are compelled to pay, their conditions frequently prevent them getting any benefit whatever from Unemployment Insurance, and this Bill, if passed in its present form, will not give them a single penny more, though they have to contribute even under this condition of part-time work. The right hon. Gentleman has given figures as representing the sums which, from other sources, will be drained into the fund by this Bill. The total State payment, we are told, will, in the course of half a year, amount to about £2,500,000. I have seen at least three or four cases in the newspapers, within the past few months, of dead men, each one of whom left, as his private portion, more than that sum. Is that all the State, at this moment of extreme individual working class urgency, can afford as its contribution for the relief of this distress 1 I am speaking, of course, of the special supplementary form of support or relief which this Bill sets out to give. Persons who are not eligible for benefit, then, will be compelled to pay. Indeed, it is true that the largest section of contributors to this fund are at once excluded from the prospects of benefit because they are not married—they have not wives and families. The unmarried insured form the largest section of those who are covered by the Unemployment Insurance Law, and it is not unreasonable to point out that this largest of all sections of insured persons, being compelled to pay, will have no prospect of benefit at all, or grant of any kind, because they have neither wife nor child.
The right hon. Gentleman—though this is not quite the stage of the Bill for going fully into this point—has drawn our attention to some details of the Bill, and I turn to one of them. Clause 7 declares that grants under this Bill are to be inalienable—that they cannot be used in the sense of substituting some other debt. They cannot be attached or claimed for any other purpose. But the right hon. Gentleman explained that, other parts of the Bill will permit local authorities and boards of guardians and unemployment committees to take into account not part of the benefit, as is the case now, but the whole of the benefit, including this grant. That is a monstrous proposal to make at this moment, for in practice it will mean that you will have, in the administration of this Bill under this change, England so measured and assessed that probably there will be cases where the man actually will have his relief from the guardians reduced to a greater degree than he will get in increased income from the grants under this law. And the Government calls that giving special assistance, monetary grants, to people suffering exceptional distress facing the coming winter. I have said that the contributions to this special fund and to the Unemployment Insurance Act is not the only payment workers are making towards relieving unemployment, I have been supplied within the last hour or so with a list, the full details of which I shall not give to the House, but briefly I can give a picture which I hope will make some impression. Taking only nine of the largest trade unions of the country, I find that in the 12 months ending 30th September this year these unions collectively have paid to their members from their funds in unemployment benefit £4,267,119—a really creditable and certainly a very substantial sum from the workers to the workless workman. If I may quote from the list as showing what the very lowest paid workmen do, let me take the case of the National Union of General Workers. In the period I have referred to that union has paid from its funds in unemployment benefit a total of £520,239. It cannot be said, therefore, that the men are not putting their hands deep in their pockets to relieve the distress of their own class. In addition to that, at this moment very heavy levies supplementary to the ordinary trade union contributions are being paid by men in work to maintain these unemployment trade unions funds. I have a list here showing some levies or extra contributions to be as high as 3s., several of them 2s. 6d., some 1s., 1s. 6d. and so on. I think I have shown that individually the workers, within such resources as they have, have not been unmindful of the claims of their own fellows upon them and are making very creditable payments indeed, and it is on that account that we feel entitled to call upon the State to make a more generous contribution—and not merely generous, but a more general contribution from State resources for the purpose of this temporary relief fund which this Bill will establish.
Coming to one or two details, I understand it is the Government's intention that women workers shall be entitled to a grant in respect of their dependent children.
Yes.
I am not satisfied that the words of the Clause as they are now drawn carry out that intention, but I am glad to have an affirmative answer from the right hon. Gentleman and I trust the matter may be made legally safe in the course of the coming stages. I trust we shall be satisfied on that point. There is a phrase in the Title to the following effect— dent upon her, she shall have a claim for the shilling, or whatever the sum may be, just as a man would have the claim if he were an insured person. There are cases which, I am certain, individually the right hon. Gentleman will admit to be very deserving and proper cases, clearly not covered by the terms of this Bill. No provision is made, for instance, for a single man who may have a dependent mother or dependent sister. The maintenance of a mother or a young girl by an unmarried man is a common thing in many a working class household. Clearly there can be no reason for withholding benefit in individual cases of that kind. It may be true that such cases present administrative difficulties—they might involve some inquiry into domestic circumstances which even working class families would resent—but whatever the administrative difficulties may be they should be overcome as an act of equity and justice to those who are really in as great need as many a man may be who has a wife and child to maintain. Then again, I turn to the case of the working woman. What about a grant to the working woman who may have a husband dependent upon her? It is very often the case in working class families that the common position is reversed, and there are exceptions, so that if the husband is dependent upon the wife and upon her work her claim for a grant to support him clearly is as good as if the case were-reversed and the wife were dependent on the resources of the husband.
5.0 P.M.
I have already dealt with the case of the part-time worker, and I hope some of my hon. Friends will return to a more full examination of that really hard, though perhaps hackneyed, case, and that we shall have a rather more satisfactory answer to meet the ease than we have had on any previous occasion. I suggest as strongly as I can to the Government that plans should be devised for making some special collection of money for this fund from the classes that will be left untouched by the Bill as it now stands. Surely those who ought to pay, if there is to be compulsory contribution to a fund for relief, are those who are best off, whose incomes are largest, and who are making no contribution whatever to the national reserve in the relief of unemployment. There are, for instance, large classes of workers. I do not exempt the workers from this criticism. There are the railway workers.
A great number of railway workers will contribute.
A very large number, the higher paid classes of railway workers, will make no contribution to this fund. A very large section, I suppose hundreds of thousands, of municipal employés will make no contribution to this fund. Members of this House will make no contribution to this fund. [HON. MEMBERS: "They will."] I mean in their capacity as Members of this House, for which they receive some payment. If they want in their capacity as employers to make a boast of what they pay, let me remind them that what they pay they first of all receive in profits. The burden is really upon industry and not upon the individual employer at all. There is a very large class of civil servants, as well as municipal employes, who will not contribute. All the salaried section of the community will be exempt from payment to this fund. The bank clerks, the financiers, the farmers, the professional men, the men of the law, the men of the Bench and the Bar; all these classes, clearly, are people who are best able to make a special contribution to a winter need fund for the unemployed, but they are explicitly left out of account, because they are not covered by the present insurance law. This is not a Bill which we can listen to with any patience as making any substantial contribution to the necessary relief to meet the bitterness of the oncoming winter.
I came to the House this afternoon armed with arguments which, I have no doubt, would have been sufficient to extract from the Government the very pleasant decision which they have come to with regard to the inclusion of Ireland in this Bill. I thank the right hon. Gentleman for making it unnecessary for me to put those arguments before the House. There can be no question that Ireland must come under this Bill, because the condition of unemployment existing in Ireland is, if anything, worse than that which exists in this country. It would be utterly impossible, with any degree of fairness, to differentiate between the two countries. It is quite true that we representatives from Ulster would have been very glad if we could have shouldered the responsibility for dealing with the unemployment question ourselves, but, unfortunately, for reasons which I do not propose to discuss, the powers which would enable us to do so have not yet been handed over to the Northern Parliament. That being so, it would have been quite impossible for the Government to exclude Ireland from this Bill. Their decision to include Ireland has relieved my colleagues and myself, and everybody in Ulster will be relieved when they hear of the decision at which the Government have arrived. I should like to ask a question in order to make absolutely clear to my colleagues and myself and to our constituents what the Government propose to do in regard to the other two Bills dealing with the unemployment question as the Bills are drafted Ireland is included in them, but the House will remember that when a question was asked the Prime Minister by the hon. Member for the Falls Division (Mr. Devlin) whether these various proposals dealing with the unemployment question would apply to Ireland, the Prime Minister gave a somewhat emphatic "No."
That question was simply directed to this Bill.
I am very glad to have had that reply, and I should like the right hon. Gentleman to make it clear that the other two Bills in regard to unemployment will also apply to Ireland.
I cannot say about the others.
The right hon. Gentleman cannot say, but I may take it that, by reason of the fact that Ireland is not definitely excluded, that the Bills will apply to Ireland. I am very glad that the Government have seen their way to rectify what would have been the very unjust position in which Ireland and Ulster particularly would have been placed. I hope the Government will go a step further, and that they will remember that we are only too anxious to shoulder the responsibility of unemployment and other responsibilities as soon as we can. If they will only give us the complete Home Rule Act that was passed last year, and will give us the necessary powers, we shall be able to relieve this House of a great deal of work and give the House a great deal more time to devote to the affairs of this country.
I have kept an open mind on this subject, and I came here this afternoon with the intention of listening to the Debate before I decided what course I would take. I have already reached the conclusion that the only possible course for me to adopt is to give a general support to the Bill. I recognise that the Prime Minister stated on Wednesday that this is one of several proposals which are simply expedients for dealing with a great emergency. For my own part I hail with a great deal of satisfaction the declaration of the Minister of Labour that he has already removed what I regarded as a great grievance, and that was the exclusion of a large section of Irish workers. Since my trade union days, in an official capacity I have maintained Very intimate contact with sections of workers in Ireland, and they have represented their feeling that justice would be affronted if they were not included in this Measure. Much that I had desired to say is rendered unnecessary because the Minister of Labour has stated the decision of the Government to embrace the workers of Ireland, particularly in the shipbuilding and the linen industries, within the scope of the Bill.
I recognise the shortcomings of the Bill. The utmost that we can do must fall far short of what we would desire to do. My right hon. Friend and the Government require encouragement rather than the detraction with which they are beset so frequently. I appreciate their difficulties. I have said in public in various parts of the country that it is wrong to delude the people into the belief that the Government have at their disposal some inexhaustible reservoir into which they can dip to furnish all of us with the needs of life. We have reached a point where, if we view the matter in true perspective, we must recognise that all classes of the community are bearing very heavy burdens, and if we impose more on them in the shape of taxation we may defeat the very purpose we have in view, and that is, the provision of employment. I have made it my business to inquire a good deal into the state of trade in the country, and, I believe that one of the greatest requisites of the moment is capital available for the purpose of and investment in business, in order to stimulate employment and to re-create the trade of the country. I apprehend that the Government have had to view the matter from all points of view. I have made no secret of the fact that I would have preferred that the Government should have undertaken the full responsibility of financing this Measure. On the other hand, I recognise that there is no body in the country entitled to say that they really represent the full labour opinion in the country. I have during the past few days consulted a good deal of labour opinion on this matter, and whilst there are differences of opinion amongst those with whom I have come into contact, I have met many who prefer, in accord with their own trade union traditions, that they should make some contribution in order that they should be entitled to a voice in the administration and in the rectification of any abuse that may take place under such a scheme. [ Laughter .] It is all very well for my hon. Friends on the other side to sneer, but I claim that I am just as honourable in my intentions as they are, and I claim that I know the trade union and labour movement just as thoroughly as they do. I put my claim no higher than theirs, but I have a perfect right to express my opinion in this House as I think fit, and whether they like it or not, I shall express what I think. In so doing, I recognise that it is my duty to pay the same respect to them that I require from them.
A certain criticism levelled against my right hon. Friend is hardly borne out by the experience of the past. My right hon. Friend is charged with failure to embrace all the workers of the country within the Unemployment Insurance scheme. It will be within the recollection of the House that I had had some experience in the office that my right hon. Friend now fills with distinction, and I can well recall the extreme opposition that I encountered in respect to the inclusion within the unemployment scheme of certain trades which it is now alleged ought to be brought within this scheme. As a representative of the party on the other side in those days, I was in favour of a universal scheme of State insurance. It was not the Government that defeated that scheme, and it was not myself as Minister of Labour that was to blame, but it was the opposition of certain trade unions, who made it impossible for us to effect the complete insurance which is now declared to be extremely desirable.
One of the first acts which I had to perform as Minister for Labour was to effect the exclusion from Unemployment Insurance of a trade that had been brought in with the concurrence of my friends of the Labour party. Again, the agricultural industry in those days, I was told, ought not to be brought within compulsory Unemployment Insurance, because it was not subject to anything like the same measure of unemployment as the occupations of urban workers. Another fact, which is not so readily within the memory of this House in these days, is that when we were formulating the Unemployment Insurance scheme we met with a great deal of opposition because it was then regarded as a competitor of trade unionism, and trade unions felt they could do the thing so much better and that it increased the effectiveness of their appeal to the worker to prove that they were able to provide for unemployment. Therefore, while we are right to criticise the Government we ought to look at the matter all round, and what the Government is doing is very largely the result of the policy which we ourselves have helped to establish. I recognise that it is hard to call on workers who are not in receipt of full-time wages to contribute to the maintenance of their fellows who are out of work, and I am prepared in Committee to argue that case, and I think that we ought to restrict the compulsory payment of this fund to those workers who are in regular and full-time employment.
In my own constituency the staple trade has been on short time for many months. There appears to be a short revival at the moment. I hope that this will continue so that larger numbers will be in full time employment, and I am able to say that the man who is in full time employment will have no objection to paying this further 2d. per week as long as he has the chance to assist his less fortunate fellows. This question is made all the more urgent because of what has happened during the past year or two. If the trade unions were in possession of the accumulated funds, if they were able to continue paying out-of-work benefit as heretofore, the intervention of the State scheme would not be so necessary as it is. But we know what has happened in the trade union movement. Membership has fallen away, funds have become depleted, and—let us face the truth—workers rendered workless because of the policy of a section of their fellow workers. [HON. MEMBERS:." Withdraw!" and" Rot!"] If that is "rot" it is much better sense than those hon. Members who interrupt are capable of uttering. But my hon. Friends know it. They admit it privately. I think that we have to keep these facts well before us in order to avoid these errors in future; and one inducement which I have had for supporting this is the imperative necessity which exists for it because of the unfortunate position in which trade unions are placed at the present time.
Much has been said about workers who will be compelled to subscribe being rendered unable to participate in the benefit. I think that my right hon. Friend is aware that in order to allow persons who are insured under the Un-Employment Insurance scheme to avail themselves of benefit the practice has grown up during the last few years, a practice which hitherto was unknown, of arranging that those men are not really out of work in the sense that they have left employment permanently, but they are stood off for a time. Therefore while no trade union would acknowledge— my trade union certainly would not—it as a case of a man being out-of-work, yet while in the old times he would be working three days a week, and therefore be on short time, now he is at work one full week, and he is stood off a week, and the week he is stood off he is able to draw unemployment benefit, and because that practice obtains so widely I think that it deprives of a good deal of its force the argument that men who subscribe have no possibility of securing any benefit. These are practical points which we are bound to take into consideration. While my right hon. Friend the Member for Platting (Mr. Clynes) was delivering his speech, some of us were discussing among ourselves the case to which my right hon. Friend alluded towards the end of his speech, the case of the woman, an employed person, who has a dependant husband. I recognise that there are cases of that sort, and if the Bill does not meet that case at present—and I am advised that it is not clear that it does—it should certainly be met in Committee.
There is a number of Committee points to which one might refer, but I feel that it would be unwise to occupy the time of the House on Second Reading in so doing. I conclude with joining in the tribute which has been paid to the employés of the employment exchanges as regards the work which they have to do in this connection. They have been submitted to a great deal of criticism, much of it extremely unfair in character. [HON MEMBERS: "From your own side."] I have always defended the workers in employment exchanges. I have always recognised them as an integral part of the national organisation of labour. Therefore, it is unfair even to imply that I have been associated with that criticism; but what I do appreciate is the acknowledgment of the work of the Unemployment Committee. I had a considerable part, and my right bon. Friend the Member for Gorton (Mr. Hodge) also took part, in establishing these committees. I believe that they have made for efficiency of administration of the employment exchanges. Certainly, I am sure they have done a great deal to humanise the relationship between employers and employed, and if they are willing to undertake the further work imposed by this Bill, when it becomes an Act, we may be assured that abuses will be avoided and that benefits will go to those people who need them so sorely in these depressed times.
I very respectfully ask the indulgence of the House while I make a few observations on the Bill now before us. I have listened to the Debate very carefully, and one very important fact emerges. That is that there appears on all sides of the House an acceptance of the principle that it is the duty of Parliament to take note of the distress caused by unemployment. That is a very big step forward from the callous attitude of the past, when it was deemed the proper thing to regard a number of hungry unemployed men at the workshop gates as an industrial necessity. I am pleased that the House has taken that step forward with regard to this problem. I may be pardoned for saying as a new Member that the Bill before the House appears to me to fall short in two or three matters. Not only does it exclude those sections mentioned by my right hon. Friend the Member for Platting (Mr. Clynes), but I would call attention to two other sections who are excluded. I refer first to those persons who are deemed to be non-manual workers whose remuneration exceeds £250 per annum. There will be approximately 500,000 of these people who at one time or another have been contributing under the State unemployment scheme. Those people should be included, because they are able to contribute this levy, if the levy is imposed.
Then there is another section to whom I would like to call attention. The persons employed in the insurance offices of this country have a scheme of their own. I understand that they have contracted out of the unemployment scheme, and I would urge the Minister of Labour to find some means, if this levy is imposed, of imposing it upon those who are best able to pay. The unfortunate matter about the whole of this Bill is that you always come back to demand the levy from those people who are least able to pay. I happen to be an officer of a trade union that has imposed a capital levy of a pound upon each member of the organisation, and that levy is paid. I have also consulted people, as my right hon. Friend on my left has apparently consulted his people, and I think that the House ought to know that among the trade unionists with whom I am in touch there is very strong opposition to the financial proposals in this Bill. But another point occurs to me. I notice that the Government called upon the Government Actuary to make a Report as to the financial provisions of the Bill. I notice that there was a Report only, and there do not seem to have been any actuarial estimates or calculations. In the past, when the House has been called upon to deal with financial proposals of this kind, there have been definite actuarial considerations before the House. On this occasion we have merely a Report. I ought to say that I should be very sorry indeed to be placed in the position of an actuary who would be called upon to make any actuarial calculations on a proposal of this kind. The thing appears to be impossible, as indicated in this Report.
It is unfortunate that the House should be called upon to deal with a case of this kind in a panic. Provisions of this kind ought to be made in a time of industrial prosperity. I can well imagine that if the Minister of Labour does not do his duty properly on this occasion the next Minister to come to the rescue will be the Minister of Health. I could give to the House figures to prove that as unemployment increases and distress develops among the people, so the figures in relation to sickness benefit of the societies which pay that benefit increase all along the line. Parliament has been called in order to deal with unemployment. I wish to recall the last few sentences of the speech of the Prime Minister. Distress caused by unemployment has been brought about by War. It is the duty of all of us to remember that the best thing every public man, every Member of Parliament, can do, in order to avoid unemployment, is to work for peace and good will between men and nations, as was stated by the Prime Minister.
It is very pleasant to find oneself in almost complete agreement with the speech of an hon. Member on the Labour Benches. It is all the more pleasing when that hon. Member expresses one's own views so much better than one can do oneself. I am sure that every Member who has had the pleasure of listening to the maiden speech of the hon. Member for West Houghton will look forward to a repetition of the pleasure of hearing him and will be grateful to him for having made a very valuable contribution to this important Debate. I found myself in agreement with what the hon. Member said about the necessity of making one's plans for unemployment in times of prosperity. I found myself again in agreement with him when he spoke of the part that the trade unions might play in this matter. I would have much preferred that the administration of a far greater part of the unemployment benefit should have been undertaken directly by the trade unions.
Let me emphasise one or two administrative points connected with the Bill before us. However ready we may be to support the Second Reading of the Bill, we ought to scrutinise its proposals very carefully. I am afraid that if the history of unemployment teaches us anything it is that the measures for relief have in the past often aggravated the evil. I need not elaborate that contention now. Anyone who will look back to what happened after the great Napoleonic War in 1815, or to what happened after the starting of the various Mansion House funds in 1885, will agree with what I have said. One is, therefore, very anxious to take no steps that will agree with the very serious evil with which we are faced. I am not sure that if this particular Measure stood by itself I should be prepared to support it. It has always seemed to me that time after time the Government has fallen back upon the one resource of increasing unemployment insurance. That is only a palliative, and in the opinion of many people a very unsatisfactory palliative. But in this particular instance this palliative is only one part of a much larger scheme, and because of that, although I intensely dislike the palliative of unemployment doles— —
This is not doles.
I am sorry to disagree with my right hon. Friend. The State finds a substantial part of the payment, and since the State does that it is a dole. At any rate that is my opinion. Apart from the actual phrase I used, I still say that I intensely dislike the whole system of Government unemployment benefit, and that if this Measure stood alone I would not support it. Let me come to certain administrative points. There is the case emphasised by the right hon. Member for Platting (Mr. Clynes) of the married woman. I will not add anything to what he said. I agree with him, and I hope that when the Minister comes to reply he will be able to give a sympathetic answer to the very strong case that the right hon. Gentleman made. Take the question of co-ordination. It seems to me that there is a great risk of a number of different bodies dealing in the various local areas with unemployment, and of a great deal of overlapping as a result. The guardians, for instance, will be giving relief, but not be providing work. The borough councils, if one takes the case of London, will be providing work, but will not be giving relief. The Employment Exchanges will be dealing with a very large body of unemployment, but they will not be dealing with the great industry of agriculture or the almost equally great industry of domestic service. Besides that, there will be a number of Government Committees and distress agencies of various kinds spread over the country, all focussing their attention on unemploy- ment. I fear that in the actual administration there will be a good deal of overlapping.
I will make two suggestions to avoid that. In the first place every local area of a certain size ought to keep a complete list of all the men and women in that area who are receiving relief from any source whatever. A register of that kind is absolutely necessary if overlapping is to be avoided. Secondly, and more important, somehow or other all these various bodies dealing with unemployment ought to be brought together. I am inclined to think that the best means of focussing and coordinating their efforts would be to work upon the basis of the employment committees, and I suggest that the Minister of Labour should enlarge the membership of those employment committees in the areas, and that upon them there should be representative delegates from every one of the bodies that may be dealing with unemployment in a particular area.
Do you include the guardians?
I include the guardians most emphatically, at any rate in London, and it is of London that I speak with the greatest experience. It would lessen very much the danger of overlapping if you had one body, whether it be an employment committee of the area or some other ad hoc body, dealing with all these various questions. With reference to what has been said about agricultural labourers, my right hon. Friend pointed with some force to the fact that agricultural labourers did not desire to come within the unemployment insurance scheme. I admit the force of that contention. At the same time I am sure he will agree with me that the present situation of the agricultural labourer is a very disastrous one. I know from direct experience of that part of the world in which I live, Norfolk, of the number of genuine workers who at present are out of employment. The right hon. Gentleman said, "Oh, but these men will take advantage of the great schemes of afforestation and drainage upon which the country is about to embark."
As far as they go.
Yes, as far as they go. As long as I have been in politics I have heard over and over again of afforestation and the great scope for employment that afforestation is likely to afford to the agricultural labourer. I am personally very much interested in forestry. Time after time I have attempted to start forestry schemes in my part of the world, but up to the present, although we have heard so much about afforestation, I do not know of a single case in which any Government grant has ever been made, at any rate, in my part of the world. I hope that this will not be simply a promise held out to satisfy the agricultural labourer who is debarred from receiving unemployment benefit, but that in the next two or three weeks schemes of afforestation will be begun in the agricultural districts. I would be very grateful to my right hon. Friend if he would give us details of the schemes to be sanctioned, as to how soon they can be sanctioned, and as to when the work can begin.
There is the other class outside unemployment benefit—the domestic servant. The question of domestic service has a way of irritating practically every man and woman in the country. I am not going to enter into the controversy, but I suggest that the domestic servant has a right to some kind of help, just as the agricultural labourer has, when outside the benefit scheme. I would be, grateful to my right hon. Friend if he would give a little more information as to whether the training schemes are going on or as to what other advantages can be offered to domestic servants in view of the fact that they are not included within the scope of this Bill or within unemployment benefit at all. I have raised these points in no way to embarrass the passage of the Bill, but rather to clear up certain points which ought to be cleared up at the outset of our discussion.
There are two points of friendly criticism of the Bill which I desire to raise. I think that the Minister of Labour has really been somewhat unjust to the class of persons he seeks to benefit. Under the Bill, 4d. out of each 7d. is to be found by the insured persons or their employers. There are about 11,250,000 insured persons, and I find that there are about 7,500,000 men included in the total. The actuaries estimate that for each insured man there are on an average 15 dependent persons. That is to say that, taking the insured population and their dependants, we have in all some 21,000,000 persons concerned in these contributions.
They find 4d. out of every 7d., but they also find their share of the 3d. which comes from the Treasury because they are general taxpayers. The insured persons and the employers constitute about half the population of Great Britain, and as general taxpayers they will find roughly one-half of the other 3d. Therefore this particular section of the population is, in effect, going to find 5£d. out of every 7d. That is not on the surface of the plan, but that is actually what it means. As direct contributors and as taxpayers, this group of the community will be contributing every week 5½d. out of every 7d., and that is too big a proportion to cast upon one section of the community. I quite agree that the contributory principle is sound, but the finance of the Bill is so arranged that those who are suffering most from the difficulties attendant upon trade depression, who are contending against the hazards of trade and the risks of unemployment, will be finding this large proportion. It is quite fair that a contribution should be made by them, but the Government has placed it far too high. If it were 1d. per employed contributor and 1d. per employer, that with the half which they also provide of the Treasury contribution, would be about a fair share. We ought to press the right hon. Gentleman on this point and see if he cannot rectify this grossly disproportionate arrangement of contributions.
The other point, with which I ventured to deal the other day, relates to the arrangements referred to by the hon. Member who spoke last. Under Clause 6, it will be seen, the receipt of benefits under this scheme does not disqualify from the receipt of relief under the Poor Law. Clause 6 provides that in determining whether relief is to be given, regard is to be had by the guardians as to whether the persons concerned are or are not receiving benefit under this Bill and the amount of the grant. We are told that 600,000 will be entitled to receive benefits in the course of a week or two, and will come under these provisions, but there is no machinery whatever, set up or suggested, whereby the Poor Law guardians in any area may know whether the applicants coming before them are or are not part of the 600,000 persons who are coming into benefit in a fortnight's time. There is no means whereby the Guardians can be properly informed as to whether the applicants are benefiting under the scheme or not. That was the point of my criticism the other day. Short of the Government adopting a principle such as has been recommended to us on more than one occasion with regard to Poor Law reform, I think the setting up of some local committee or some central body to authorise distribution in each locality is essential. Otherwise people who are now receiving weekly payments from the guardians will in a fortnight's time become eligible for this benefit, and there is nothing, so far as I can see, to secure economical administration, or to prevent persons receiving benefits from two different sources.
Apropos of this, as I see the Minister of Health is present, I will refer to a statement which I understood him to make the other day, that I had not been a party to any suggestions for the reform of the Poor Law in these matters. I think he must have overlooked the fact, of which he is well aware, that I have not only spent a great deal of time on this matter, but have made definite suggestions as to the course of action which should be taken regarding reform of the Poor Law, and I am sure that one thing this Bill will do, is to legalise a condition of things under which Poor Law guardians throughout the country will be contributing £1 or 30s. or more per week to persons who are at the same time receiving 15s. plus 9s. from the State through another channel. That will be going on in respect of the same persons every week.
It was going on when you were Minister of Health.
The point is that until recently the guardians distributed their relief in kind and not in these big cash payments which have only become the custom during quite recent months. Whilst everything was done by the guardians in the case of strikes, and in certain other special cases, yet the distribution of large sums of money is relatively new in connection with Poor Law relief. I am not blaming the right hon. Gentleman. I am not blaming anybody; I am merely pointing out that we are drifting into a position wherein the guardians will be paying sums of money to persons who are at the same time going to receive substantial amounts through this Bill. The result of that will be that we shall have to form some agency in every locality—call is a public assistance committee or whatever you like—which will be responsible for the distribution of assistance of all kinds from public sources in that locality. I am sorry my right hon. Friend the Minister of Labour has missed the opportunity of making in this Bill some proposals whereby this serious overlapping might be prevented from growing and from creating further mischief. I hope when we go into Committee he will be willing to consider suggestions directed towards overcoming any abuses which might arise out of that overlapping. Those are the only two points of criticism which I desire to make: First, that the proportion of contributions is too high on employers and employed, if you regard them as direct contributors and as taxpayers; and, secondly, that under the Bill there should be some statutory machinery to deal with the overlapping which is now becoming legalised by Act of Parliament for the first time.
I understood the right hon. Gentleman who has just sat down to express the fear that people who are already in receipt of unemployment allowances may benefit under the Bill by receiving additional allowances either in the shape of outdoor relief or in some other form. I understood the Minister of Labour replied, not by denying the possibility of that, but by saying that it took place while the right hon. Gentleman himself was in charge of the Ministry of Health.
My right hon. Friend knows my opinion. I am taking care that the 10s. which was left out of the account altogether previously is now brought into the account. The guardians must take into account the whole of the amount which a person is receiving. That is a change.
How are the guardians to know 1 I understand the right hon. Gentleman the Member for Shoreditch (Dr. Addison) did not wilfully do what the Minister of Labour says he did. He only did it because there was no means of finding out whether these people were in receipt of allow- ances which they should not have been in receipt of. I am within the recollection of the House in saying that the reply of the Minister of Labour was "You did it too." That will not satisfy the taxpayer. If there has been a mistake, perhaps an unavoidable mistake, the proper course for the Government is to take steps to prevent such a mistake recurring in the future. This is extremely important from the point of view of the taxpayer. He should not be taxed twice over for the same person. Everybody who has read the accounts of proceedings in the police courts and other places knows that over and over again people have made claims and received money who have no right whatever to receive such monies. I desire to ask the Minister of Labour one or two questions. Clause 3, as I understand it, taken in conjunction with Sub-section (4) of Clause 1, seems to give power to the Minister of Labour to enter into an agreement with any trade union and to say to that trade union "What do you think your people would be receiving if it was left to you to find the money?" and the trade union says, "Well, £1,000," and then the Minister of Labour says, "All right, I will give you £1,000." [HON. MEMBERS: "NO, no!"] Then Sub-section (4) of Clause 1 says that the decision of the Minister of Labour on any question shall be final and conclusive and not subject to appeal to any court. Therefore, it seems to me that Clause 3 will have the effect I have indicated, though I may be quite wrong.
You are.
I hope I am. Sub-section (1) of Clause 3 reads:
"Where the Minister of Labour has made an arrangement with any society or association under Section 17 of the Unemployment Insurance Act, 1920, he may, subject to the prescribed conditions, make an arrangement with that society or association that, in lieu of paying grants under this Act to members of the society or association, there shall be repaid periodically to the society or other association out of the Unemployed Workers' Dependants' Fund such sum as appears to be, as nearly as may be equivalent to the aggregate amount which those members would have received during that period by way of grants under this Act if no such arrangement had been made."
That seems to me to allow the Minister of Labour to say to the trade union, "Instead of paying your men what they are entitled to, if they were in a bad way, under this Measure, I will arrange through you and pay to your members the sum which you would have given them yourselves."
indicated dissent .
Read on.
6.0 P.M.
Take the case of the building trade. We were told the other day by the Prime Minister—and I am sure hon. Members opposite will accept what the Prime Minister said— that the building trade is fully employed. What is to prevent the building trade union saying, "None of our men are out of employment, still it might be well that you should give us something"? [HON. MEMBERS: "Oh, oh!"] It is all very well to say "Oh!" but there are some very extraordinary things in connection with this dole-giving business, and it is well to remember all that has happened since the War. Clause 1 says distinctly that the decision of the Minister of Labour on any question which has to be decided by him under this Act shall be final, conclusive, and not subject to appeal to any court. Therefore, we are giving absolute power to the Minister of Labour, who, I am afraid, is a little bit inclined to be too generous with other people's money, to do what he likes, and we expressly say that he shall not be subject to any decision of the courts of law. I am a believer in the courts of law, and I am not a great believer in the Government, and I would much rather that all these matters should be settled by a court of law than by the Minister of Labour. If, as I believe, I am right in my interpretation of the Clause, I hope the House will make some alteration when we come to the Committee stage.
In the discussion that has taken place on this question reference has been made on both sides to this not being a solution, and we have never done very much good by interfering with unemployment in the past. The reason for that is not very far to seek. The reason why it has not been successful in the past is that we have only endeavoured to patch up the bad results of our industrial system. You will only affect a great deal of unemployment when you deal with our industrial system, and I have no hopes of converting Members of the Coalition Government to a change in our industrial system. I will spend my time rather in endeavouring to convert the electors outside to send to the House of Commons a Government that will change the industrial system. I cannot say smooth things even about this Bill. I know you cannot deal with unemployment when unemployment is with you in the manner that you might deal with it if you considered it before the calamity came. The time to have considered the question of the probability of unemployment was before the unemployment was with us, but even when it is with us, what I complain about is that this question is not made a national question. I want to be absolutely straight in speaking upon this matter. During the War we were told that we were a great family and that we should all contribute our little. Now we have unemployment, and if we are going to deal with it, every section of the nation should contribute towards dealing with it, and that is not being done.
As has been said over and over again, it is only those who can least afford to pay who are the people who are being asked to pay—the men who themselves are down and out very largely. Hon. Members opposite may not think very much of a penny or two pence, but to many of these men a penny or two pence means a great deal. When we deal with this question of unemployment, we do not deal with it in the same way as we dealt with fighting the War. Then we made the appeal to everybody, and everybody had to sacrifice, and when it comes to dealing with unemployment we ought to make a wider demand than we are making at the present time. I shall be asked, where is the money to come from? I will tell you now where some of it can come from. I noticed the other day that £60,000 could be spent on a pearl necklace. I say that in this country, after the sacrifice that was made from 1914 to 1918, it is a scandal and a disgrace that a section of the community should be in a position to spend £60,000 on a pearl necklace while there are unemployed soldiers and starving women and children in the land. I notice there was £200,000 given for a Gainsborough picture. My education in art may have been neglected, but I thank God for that if such education means that I would rather see £200,000 spent on a Gains- borough picture than on feeding the children of unemployed workers. There is to-day five times the amount of money being spent on luxurious motoring that was spent during the War, yet men who are now working short time have got to pay a penny or twopence per week, it may he, out of the little they are getting in order to get what is called a dole.
Hon. Members may just as well be aware, where we stand at present in regard to the unemployed of this country. It says a great deal for the unemployed that they are suffering as they are suffering without us having disturbances; they are suffering in silence. When I see Employment Exchanges and men standing outside, when I see the women and children and young lads who visit my home, many of them men who joined up in the Army and who have been idle for 8, 10, or 12 months, and this is what they are getting, with unlimited wealth in the country, in my opinion the Minister of Labour and the Government would do well to consider the tapping of these sources to get some succour for the unemployed in the country at the present-time. We cannot do much with works, as has already been said. They have largely been a failure, but what we can do meantime is to tap the wealth of this nation so as to prevent serious trouble, that is sure to arise with the unemployed unless something more is done this winter than is being done at the present time.
The essential principle of this Bill, as I understand it, is that some further direct provision should be made by the State in relief of the unemployment distress which exists. That is a principle to which I cannot offer opposition, and which I could not vote against at this time. It is true, I think, that this is a dole, and it is true that many objections can be made to a system of doles. These objections would have weight if this was in any degree a permanent effort to create a system of doles, but it is purely an emergency Measure, for a short period of time, to meet an acute crisis. My right hon. Friend the Member for Platting (Mr. Clynes) belittled the grant which was made in this Bill—a grant which might range from 5s. to 9s.—and he pointed out that at present values. 9s. would only compare with 4s. before the War, but I think he omitted this from his consideration—that this grant is a supplementary grant. It does not stand by itself, but is a grant in supplement of the benefit which is already granted under unemployment insurance.
The point is that it is inadequate.
But the right hon. Member for Platting spoke of it as 9s. being worth only 4s., and he spoke of it as if it stood alone, and I point out that this grant is in supplement to some provision which is already made. My right hon. Friend had other criticisms, with a considerable number of which I find myself in agreement. Most of them are Committee points, dealing with criticisms of the Bill which might possibly be met by Amendments in Committee, and the criticism which I have to offer is criticism which will be mainly of a Committee nature. I do not propose to offer it on this occasion in detail, but I think it will be useful on the Second Reading stage to indicate the general point of view from which one approaches the Committee. The problem can best be seen in its true perspective if it is approached in this way. We are informed that there are about 1,750,000 of people unemployed at the present time, or nearly 2,000,000.
Registered.
Yes, people unemployed of whom we have knowledge. There are, of course, others—
Another 500,000.
I am doubtful if that is accurate, but that is not my point. There are about 2,000,000 of unemployed people at the present time of whom we have official knowledge, and, with regard to some of these, some provision has already been made by the State through the machinery of unemployment insurance. With regard to the other portion, no provision whatever is made by the State. It is true that something may be done locally through the machinery of poor relief, but no provision is made for them by the State itself, and I would welcome some information from the Government as to the proportions between these two different bodies. Have the Government any estimate or any figures as to the number of people unemployed who are under the unemployment insurance scheme and already having some provision made for them, and have they any figures as to the number of people unemployed of whom they have official knowledge but for whom no provision is made at the present time by the State? I could give no estimate myself. I have no idea, but I take it that probably, out of 1,750,000 of unemployed, there may be about 1,000,000 who already have some provision made through unemployment insurance, and the others will have no provision made. That is the point of view from which I approach the Bill in Committee, and I examine the machinery having these facts in mind, and the first thing that strikes me is this, that the dole which is proposed in this Bill is not a grant to all those who are unemployed; it is a grant only to one section of them, only to that section which comes under the machinery of unemployment insurance. It does not attempt to cover the whole field, but limits itself only to this one particular section of the problem. The distress is as great in that other section, but nothing is done.
The second thing that appeals to me is that this supplementary relief is granted to that section for which something is already done. It is granted in supplement to a provision which is already made. It is a grant to those for whom, something is already done, and, with regard to the section for whom nothing is already done, no relief is provided by the State. It ignores those who have the largest need. That is a very serious criticism of the Bill. It is one which ought to be faced in Committee, and I am sure there will be a considerable number of Amendments with regard to it. Then I come to the question of how the money is to be raised for the purpose of paying this dole, because I assert that this is a dole. There is some confusion in regard to this subject as to the provision made in this Bill being a part of unemployment insurance. I must say that I think my right hon. Friend the Minister of Labour, in the speech which he made, increased that confusion, because he certainly did adopt the attitude that this was part of an insurance scheme. There is a natural tendency, tacked on as it is to an insurance scheme, to represent it, and to regard it, as part of an insurance scheme. It is not in any sense of the word insurance. The people who will benefit by this scheme have never contributed to it, and the people who provide a large section of the funds of this scheme will never have any benefit from it. It is not insurance; it is a dole.
No.
I have indicated the point of view from which I approach it, and I think that if my hon. Friend discusses this matter with other Members of his own party, particularly with his leaders and the right hon. Member for Miles Platting (Mr. Clynes), he will find that that is their point of view also.
It is not.
Then I have misunderstood them. But, from my point of view, this is not insurance; it is a dole. Then I ask myself, How is this money to be raised for the purpose of this dole? I find that a part of it is to be provided direct from the Treasury, and part of it is to be paid by means of a levy on the employers with regard to the labour they employ. It is, therefore, an indirect tax, which, in course of time, they can pass on to the general consuming community. But I find that a part of it, two-sevenths, is to be raised by means of a poll tax, an income tax, upon one section of the community, and only upon that section of the community which happens to be employed in certain insured trades. It is not levied upon all employed persons. It is only levied on that section of employed persons who happen to be employed in insured trades. It is a very dangerous proposal that this Government of all people should begin by introducing an income tax, or a poll tax, of that kind. If it is held that the wage-earners should contribute to this grant in a larger degree than they contribute to the general mass of taxation, then it would be possible to raise the money by means of a tax, say, of ½d. a pound on sugar or ½d. a pound on tea by means of the general taxation machinery of the country. A portion of the tax could be raised in that way, but to adopt the proposal of an income tax levied on one clearly marked-off section of the community, I think, has elements of danger in it which the Government have not foreseen. It is a very dangerous precedent to employ the machinery of insurance for the purpose of taxation. The two things ought to be perfectly distinct in one's mind. There is an unfortunate tendency on the part of some of the workers to regard the levies which they have to pay for health and unemployed insurance as taxation. It is not taxation, because it is insurance.
Then how can it be a dole?
That is not a dole; it is insurance. But there is a very unfortunate tendency on the part of some workers to regard the sums they pay for Health and Unemployment Insurance as taxation. It is not taxation, but in this Bill we are deliberately using that machinery for the purpose of levying taxation, and that, in my view, is a very dangerous proposal. If it is decided to face this danger and that the emergency demands it, I would ask this: Why use the machinery of Unemployment Insurance for this purpose? Why not use the machinery of Health Insurance? That is much more universal. That applies to practically every employed person. That would spread the burden much more widely, and it would enable these grants to be extended not merely to those working in trades insured against unemployment, but to all persons who have formerly been in employment of any kind. If it is right to use the machinery of insurance, why not use the most widespread machinery—the machinery of Health Insurance? I can conceive that proposal being made to the Minister of Health. I can conceive his alarm. I can conceive the multitude of arguments with which he would show that this scheme ought to be imposed on the Minister of Labour and not upon himself. I can conceive some very cogent arguments from him to show why this scheme should not be brought within the machinery of his own Department, and I would point out that every one of those arguments could be applied with equal force by the Minister of Labour against the machinery of his Department being employed.
Although these points raise very large questions, I think it is possible to discuss them in Committee. Amendments could be introduced. There is nothing in the Title of the Bill which makes it necessary that the machinery of Unemployment Insurance should be used for the purpose of making this levy of 2d. It would be quite possible to cut out the direct levy altogether from it. Therefore, I desire to see these matters discussed in Committee. These are matters which are raised by the Labour-Amendment to-day. But I would say that, although I regard the Bill as defective if these Amendments are not made; although I regard it as imperfect, unjust, and dangerous in some respects, yet I would not undertake the responsibility of giving a vote which would defeat a Bill which did make some additional provision at this time in relief of that vast mass of unemployment which exists. So far as it goes in making a grant, it is doing good work—work which I desire to see extended; and, therefore, at this present time, although I agree with much of the criticism contained in the Amendment, I cannot bring myself to vote for it. I shall vote for the Bill, but I shall desire to vote for some of the Amendments based on this Amendment in Committee.
I have listened with considerable interest to the speech which has just been delivered, with a great deal of which I am in agreement, and with some portion of which I am, of course, in disagreement. I want at once to dispose of the theory that has been raised as to our view of this benefit being considered a dole. I think I can claim knowledge of the people with whom I am associated, and with whom I mix and discuss and debate matters arising in this House every day, better than anyone else outside the party, and, as a party, we Condemn emphatically the term "dole." It was created as a sneer, and as a stigma and reproach when the money was being paid out after the War, and it has no relation whatever either to National Health Insurance, the Insurance Act, or the Supplementary Act. We say that this is a benefit arising out of compulsory payment which the workers, in conjunction with the employers and the State, have to contribute. I want again to say that the whole burden of the payment—I will not take into survey the State payment for the moment—but the burden of the payment of employer and workman falls upon the workman. The employer does not bear it. It is a burden on the industry. The industry has got to find the money, and very often it leads to a claim for a reduction of wages, because the cost of having to pay the employer's share is so great that he cannot afford it. We have been talking about the cost of production and about cheapening production, and we were talking here last week about the crippling of industry by placing additional burdens upon it. That is absolutely true, and we do not want to see additional burdens placed upon industry at this period of the day, but when the employer writes out his cheque for his part of the payment, it is put charge upon the industry. What the workman has to pay he has to pay directly out of his own wages, whether those wages are big or small. Therefore, we strongly condemn the term "dole" in relation to the payment of this unemployment benefit.
I want to say a word or two in relation to the Bill itself. Of course, we shall have something to say in Committee on the various Clauses, and we hope that we shall be able to secure some considerable Amendments therein. But the Bill itself has been rightly declared by the Minister of Labour as a supplementary benefit. It is a little patch to be placed on the great ruin that is before us. It is a very small remedy dealing with a terrible disease, and it is a very feeble attempt on the part of the Government in grappling with this national disaster. I am glad that the Prime Minister described it as a national disaster, and that it was a national responsibility, because this unemployment did not arise out of the ordinary course of trade, but it was, in a word, the result of the War, and, as such, the nation has got to deal with it. We say that this is a national disaster and it is a national responsibility. We say that it ought to be settled and dealt with as such, so that the whole community that has been saved from disaster by the War should contribute something towards saving the terrible disaster that has followed the War. All should pay. When we attempted some months ago to tax War-wealth for this purpose there was such a look of horror on the faces of some people of this House which almost drove us out; but hon. Members drove the Bill out quickly enough, and did not tax War-wealth nor the accumulative riches arising out of profiteering, and now they say that the remedy to be applied is to let the poor bear the burden of the poor! Of course, one is perfectly aware that in dealing with this Bill we have only to deal with the one Bill before us, but we know it is a part of other Bills that will come up in their order for dealing with the same question of unemployment. Our function and our duty to-day is to confine ourselves absolutely to this one Bill. We say that if this Bill is the only result of the strenuous efforts of the Cabinet, and the many long, weary hours they have spent in trying to evolve a scheme to meet the terrible calamity that has overtaken the nation, then it is a very futile and a very hopeless Measure indeed.
I oppose this Bill because, as one hon. Member has already stated, it only provides for a small section of the whole. It only adds something to those who are already receiving some benefit. I am not so much concerned about the 2d. per week. I am not concerned overmuch about the people who have to pay it, although it is a little bit of a burden that they will resent. I am not troubled so much tonight because a certain section will get benefit and a certain section will have to pay and will not receive benefit; but I am concerned about the great mass of the people that will get nothing but the cold charity of the boards of guardians. Where the Cabinet has come short of fulfilling their obligations in face of this national calamity is that they should have dealt with this question as a national question. If a levy is to be imposed it should be imposed upon everybody. It is a difficult job to deal with troubles when they arise, or rather when we are in the midst of them. A. good captain of a ship does not attempt to put his ship in order in the midst of a hurricane; he looks ahead and in fine weather takes advantage of the opportunity to make his ship fit to stand the storm when it comes. Our complaint against the Government is that they have not given sufficient thought to all the horrible consequences of the War from the position of employment and unemployment when they had a better opportunity of doing it than they have at the present time when the stress and the strain, is on. You cannot reason with a hungry man. You cannot stop to argue with people who see their homes being broken up and when the agonising cries of the women and children are heard. You cannot satisfy the unemployed men with manifestoes, or with tracts, or speeches. These men are impatient and want something practical. They want the Government to realise if there is no work some form of maintenance should be put forward.
In this matter of payments I give credit to the Minister of Labour to-day in pointing out the fact of contributions that are being made by the people who are entitled to benefit, and I thank him for it—for it is the right view of the whole position—but in the whole of the speech of the Prime Minister and other speeches which have been mad last week, I have not heard a single word of reference to the £22,000,000 accumulative capital of the Workmen's Unemployment Bill. That £22,000,000 was used as a reserve fund to pay out unemployment donation in the earlier part of this year. The Government fell back upon it. It is not their money. It did not belong to them. I have heard hon. Members stand and talk as if they had given away something. The Government have contributed their quota, it is true, to the amount; but here is a remarkable fact: we had £22,000,000 of accumulated funds, and no one objected to that money being used up, and it was because that £22,000,000 was being exhausted, and the Government would have been called upon to contribute something to keep it up, that they had to bring in their Bill to increase the contributions and reduce the benefits —so that the workers have been paying for the benefit they receive. We are coming to the same point again. The right hon. Baronet the Member for the City of London (Sir F. Banbury) laid a good deal of stress on the third Clause, and spoke of the awful responsibility of the Minister of Labour arranging with the trade unions to pay the benefit. I wondered as I listened where the hon. Baronet had been all the time. Has he ever read the Bill? Has he no knowledge of this Act, because he ought to know that this is the system adopted under the existing Insurance Act, and some of us have been hit very hard over it, I can assure him? We do not complain because we have spent our money, so long as that money was used to relieve destitution and prevent hunger entering the home; but it has been the system all through. There is nothing new about it, or novel. It is what has been done and is being done to-day. The hon. Baronet ought to know, and does know, I am sure, that this supplementary provision is based absolutely and entirely upon the existing Unemployment Insurance Act. That is it exactly. Anyone reading the Bill can see for themselves. One hangs upon the other. You cannot separate the two, because if a man is not in an insurable trade and receiving insurance benefit, then his poor wife cannot get the 5s. or the children their allowance—the one is dependent upon the other and there is nothing new in it; it is merely supplementary to what already exists, and there is not very much to complain about.
The other point raised by the right hon. Gentleman the Member for Norwich (Mr. Roberts) referred to the complaints of the trade unions. I am old enough to remember the first Act. I am old enough to remember the meetings of members and the arguments used, and if it had been left to individual members of the trade unions there would have been no Insurance Act at all, because, so far as my memory goes, I cannot bring to mind a single instance where resolutions were passed in support of the Bill as it then was. If the Government had been influenced by hostile resolutions we would have had no Insurance Act. The Government brought it in. I do not blame them for it. They applied it. After the British workman had had his grouse—and he is entitled to that, and he is all the better for it after he has got it off his chest!—after, I say, his usual grousing and his cursing of the Ministry and the Government and everybody else—
And his leaders!
Yes, of course. But when the Act was applied what was the actual fact? They put their backs into it and tried to make it a success. Then the Act was extended to include many more, millions. It was not put "By your leave." The Minister of Labour did not go round, or his subordinates, or colleagues, nor did he send round and ask the trade unions whether they would have it. He said, "You have, to have it whether you like it or not." I say here, without fear of contradiction, it would have been far better if the Government had tackled this problem in its entirety and applied the Act to everybody, made it a national Act, with everybody to pay and everybody receiving benefit, instead of it being the haphazard and a patchwork matter with which we are dealing to-day. There are just one or two points I want to mention to the Minister of Labour. The one thing that concerns me most is about the insured woman worker who comes under the Act. I take it, if I read the Act correctly, that an insured person, male or female, those above the age of 18 and those below the age of 18, being an insured person employed in an insurable trade will pay according to the Schedule of the Act. That is, a male person will pay 2d. a week; women, boys, and girls a penny, and so on. Every person will have that amount deducted from their wages, week after week. The woman worker, who is already paying an additional contribution if she is the wife of another insured worker, will not be entitled to the additional benefit. [An HON. MEMBER: "That is right."] So it amounts to this. Take the textile trade, or indeed any trade where you know that there are hundreds and thousands of cases where a man, say, and his wife are employed and both pay their insurance contribution—it is deducted whether they like it or not. Take a man and his wife employed in a factory. The deduction is from both. Then the supplementary benefit comes into existence, and I want the Minister of Labour to say whether I am right on this point—because this point has been put to me so many times during the last day or two and I want to be sure about it; that if the husband and wife are employed in the same factory and both pay the unemployment insurance under the existing Act and both pay for the supplementary benefit under this Act, if that factory or works is shut down and both the man and his wife are unemployed the woman will only get out from the ordinary insurance benefit under the old Act and will get nothing supplementary under this present Bill. Is that sol It seems clear in the Act. It seems to me in this that the wife worker insuring herself to get benefit, this extra benefit, or sick benefit, will have nothing whatever in the way of 'benefit out of this new Act? If that is not the position then we are under an entire misapprehension as to the meaning of the Clause. I shall be delighted to find that we are wrong on this point, but we do not really talk haphazard. We have had some consultation amongst ourselves, and we have tried to get to the bottom of the thing. If our contention is right that the woman is called upon to make a payment without any benefits to follow, then it is unjust and wrong in principle. If the woman is not to have the benefit she ought not to be compelled to pay.
Take the comparison on the other side. The housewife does not pay into the supplementary fund or anything else, and her husband pays. Suppose the husband is out of work and drawing the 15s. per week under the Act. He is then entitled to 5s. for the wife, and 1s. for each of the children to the number of four. If he had 14 children he would only receive payment for four. The wife has not made any contribution and she gets the benefit of her husband's payment. On the other hand, where there is a dual payment because she is having that which is paid for under the existing Act, the wife is debarred from getting any benefit out of this proposal, and I think that is unjust. The Minister of Labour will realise that all this does not fit the case. If you compel a man and a woman to pay, you should give them the chance of receiving the benefit. I am against this Bill because it is only a patchwork remedy to try and meet a contingency. If it meant benefiting every person affected by unemployment I would most gladly accept it.
I want to refer to the definition which an hon. Member opposite has given that this is equivalent to paying a tax. I have mixed amongst the workers as much as any ordinary man, and I have never yet heard that argument advanced. They all look upon the deduction from their wages as a payment for some benefit which they are going to receive. I have heard the employers frequently say it is a tax upon industry, and that is quite a common phrase, but I have never heard the workers complain that it is a tax on them, and they look upon it as a contribution deducted for benefits which they are to receive. I sincerely trust that the Minister for Labour will review the whole position from the standpoint of this Debate, and after seeing the weaknesses of this Bill and realising the difficulties and how limited it is in its scope, I trust he will see that it cannot possibly meet the contingency of unemployment at the present time.
In my opinion the payment of this money in the form it will be paid will create more dissatisfaction and trouble than you can possibly conceive. Imagine a man going to the Labour Exchange. One man is debarred because of some technicality in the Act. The man does not stop to argue the point. One man gets his 15s. and the 9s. for his wife and children, and another man, because his wife was an insured person and getting benefit, does not get that money, and then there is a row. There will be more difficulty in administering the Act than we have ever experienced before. When the Committee stage is reached I hope we shall be able to amend some of these Clauses, and take away some of the defects of the Bill.
The real case against this Bill has been stated very forcibly by one of the Members for Glasgow (Mr. M. Scott), who pointed out that the proposal in this Bill is not an insurance, but a tax of a special kind made under cover of the Insurance Act. As such, it is about the worst tax that could be conceived. It is true that it is small in amount and therefore possibly comparatively harmless, but such as it is, and to the extent that it does fall upon industry, it is a tax on employment at the very moment when you are trying to increase employment. Moreover, it still further discredits the whole system of employment insurance, because already under this unemployment insurance scheme, the State has again and again increased the premiums and reduced the benefits, and still calls it an insurance scheme. Now the State actually uses this scheme still further along the same lines. In so far as this is a tax, it is the worst kind of tax you could levy at this moment, because it is a tax not on income, but on the cost of production, and it falls directly upon the cost of production. I think most of us on this side of the House dislike this Bill as much as any Member of the Labour party opposite. When we come to consider the reason why we find ourselves in this extraordinary position, I think they are different from those which were given to us from the other side of the House. I give the following argument as an indication of where I think the difference lies, and not as a statement of the whole case.
What is the situation? The real responsibility for what I may call normal unemployment rests upon industry. It may be assisted by the State, and it probably should be assisted by the State, but the primary responsibility is on the industry itself. When it comes to abnormal or cyclical unemployment for which the industry cannot be held responsible, then it is essential that the State should step in. That was not the old system which was inadequate, but it was inadequate because the provisions during normal unemployment was made by the trade unions. The relief given by the State in moments of emergency was inadequate and badly organised for a relief system, but that was the old principle, and that I think is still the principle.
What has happened during the last 10 years? Before the War we began a system of redistributing wealth by taxation, and that has gone on. That is seen in the returns made of public assistance payments of all kinds. For the year 1920 we have paid in this respect a sum of £257,000,000 a year as against about £68,000,000 in 1912. Of course, that includes all the pensions necessitated by the War. For 1921 that figure must be increased to over £300,000,000 and probably £330,000,000. That is the burden which normally the country is bearing from year to year in normal times, and will have to bear for some years to come. The question to-day is whether if you tap the wealth of the country to that extent in normal times, you can rely on being able by local or Imperial taxation to mobilise that reserve of wealth which is necessary to carry on the country during times of industrial crisis.
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That is the question before us, and there are some considerations and figures which would lead one to doubt whether these payments are not far too big in normal times, and whether they do not exhaust the reserve of savings on which the Government must rely during times of abnormal distress. That £68,000,000 in 1911 represented something like 3 per cent, of the total realised national annual income. To-day the total of £330,000,000 probably represents between 9 per cent. and 10 per cent, of the national annual income. These things are supposed to represent a redistribution of wealth to the poor out of the pockets of the rich, and they must be really taken from the annual income of the Income Tax class who are paying something like £970,000,000 annually. That is to say, that the public assistance represents about 17 per cent, annually.
Seventeen per cent., curiously enough, was the figure calculated by Sir George Paish before the War for the annual savings effected by the country. Out of a total national income of some £2,000,000,000, only £350,000,000 or 17 per cent, was saved. It looks very much as if we are really anticipating and pledging in insurance and other ways what, in normal years, was very nearly the whole of our normal national savings. As long as that position exists, we shall be faced with the situation which we are in to-day when the Government may fairly come down to the House and say that the limit of the taxable capacity of the country is about reached. It is good talking about Gains-boroughs which have brought £200,000, even if it did not come from America. It is no use talking about £60,000 being spent on a pearl necklace. The question is by what form of taxation are you going to reach that wealth. There is no form of taxation, as will be admitted on the other side of the House, that will not hit industry as hard as extravagant private expenditure. That is the difference, and the Government may fairly come down to us, and say that we have reached our taxable capacity, that this use of the Unemployment Insurance Bill, to create a poll tax of the worst medieval kind, and that this use of the Unemployment Fund is necessary, we are in an emergency. What can we do when the Government comes with an argument like that? I do not know. There is nothing we can do but acquiesce.
The real fact of the matter, however, is that our whole system of public assistance fails, if the money really comes out of the pockets of the rich and goes into the pockets of the poor, and if it does not, as I sometimes suspect, come out of the pockets of the poor in order to go back to them again. If it really does represent a redistribution of wealth, we are pledging an amount which renders us incapable of drawing further on our national reserve of revenue in times of emergency. I think we should ask the Government for a pledge that they will survey the whole range of this sphere of public assistance, that they will reduce it to principles, and will declare a definite policy in order that this country may have a settled policy in regard to the whole matter.
Of course a Bill of this kind cannot be very satisfactory. Some of the hon. Members on this side of the House put forward reasons with which I absolutely agree, and I also agree with the speech that the Noble Lord has just made. I listened with patience to my hon. Friends on this side of the House when they talked about the cause of unemployment being the War. We know that that is the cause of this sort of unemployment, but we shall never get any better unless the hon. Members on this side stop encouraging people to think that they are going to obtain a change in the whole capitalistic system at once. What they have to do now is to restore confidence, for the lack of that more than anything else is keeping the employers back. Those unfortunate and misguided people who are spending £2,000,000 on pictures, or pearls, or whatever it is, are a danger to the community, but they are no worse danger to the community than the people who are trying to keep the employers and the employés back. One-thing that every hon. Member here can do is to go out and say to the employers and the employés "You have got to get together." [HON. MEMBERS: "They will not get together."] They will not get together as long as you have extremes on either side. You have extremes on this side, and on the other side you have hon. Members who fight against progressive legislation such as the Trade Boards, and other things. They are causing trouble for they are making a great section of the working people think that they do not want legitimate and just reforms. That is why I have tried to stand for progressive legislation. I would also say to my hon. Friends on this side, be careful, the Government cannot restore trade, but we can restore it by all pulling together.
This particular Bill does not seem to me quite fair to women. The right hon. Member for Platting (Mr. Clynes) asked the Minister of Labour if a married woman who was out of employment and who had an invalid husband to support would be granted the same facilities as a married man. Would she be on the same footing as a married man?
I have listened to the various points that have been put before me and I shall endeavour to deal with them later on. I will answer this now. Here is a working woman whose husband is an invalid, and she maintains him. She is out of work. She will get unemployment benefit of 12s. and 4s. besides.
That is not 5s. Why? I really would like to know. I think the House will agree that she ought to get 5s., the same as a man. After all, it is much harder on a woman to support a man than it is for a man to support a woman. I hope the Minister will listen to this. It is much harder on the woman than on the man, for the simple reason that she goes out and works all day, and comes home at night and does the housework. The man comes home at night and very often afterwards he goes further. He goes away and leaves her, and you might find him round the public-house, for instance. However, I do not want to bring that in. I do press this, though it is a Committee point, and I hope the right hon. Gentleman will bear it in mind, as it does seem to me an injustice to women.
What about the children? Suppose there were four children, or even six, or eight, or ten. What about that? I know you will have to reduce a little, but I think it is economy for the State to pay for these extra children. You cannot go around preaching about large families if the woman who is out of employment only gets paid for four children. The Bill says:
I am very anxious to get this right. That means this, that a widow who is out of work now gets 12s. benefit and might receive 9s. for nine separate children.
Yes, but suppose she had more. I really do not want to be tiresome, but we do know that in all these Bills the woman has not yet been brought up to the level at which we should like to see her. The Minister spoke about domestic servants. The House is all for domestic servants, and we hear questions asked and hon. Members clamour and say, "Why do they not go into domestic service?" The Minister has put a very good point. He said that many of these women who worked in munition factories, and who did War work, are not fitted for domestic service, and he has got a scheme for training them. Yet there are hon. Members here who clamour for domestic servants, but are against that scheme for training them. I hope the right hon. Gentleman will not listen to them in one way and not in the other. If they want these domestic servants, they must pay for their training. It will be cheaper in the end than having them with no work to do and drawing unemployment benefit.
I think those are the only things I wish to say, and I hope they will be thought out. I end with an appeal to every hon. Member on this side of the House. Do not go out talking about pearl necklaces, and Gainsboroughs. Do not preach brotherhood, and then fail to follow it out. Go out, and tell the employer and the employé, "You have got to work together, and go back," then we shall get back our foreign trade, and restore our confidence. You are not going to change this system by preaching hate, a great, deal of which is done in the name of brotherhood. That is what we have to get out of. They will be responsible if we do not get back the trade. So also will hon. Members on the other side of the-House; when they fight against progressive legislation they are just as bad for the country as the Bolshevists.
The Noble Lady who has just spoken has meted out, justice to both sides of the House and has raised points to which I am sure the Minister will give attention before the Committee stage is reached. I think the House, before coming to a decision as to how it will vote on this particular Bill, will ask, "Does each insured person benefit when this Bill becomes law?" When the Bill becomes law will the insured persons of to-day be in a better economic position at the end of the week than they will be if the Bill fails to pass into law? The point I am anxious to put is this, if they are out of work, and the Bill does not become law, will they not go to the local authorities and get relief from them, or from the Government, for which the Bill makes provision? If my contention is correct, and I think I have the agreement of the Minister of Labour on this point, this Bill will not give any increased benefits to insured persons. It will give benefits to those persons from State Insurance funds rather than through boards of guardians. If that is so, this Bill is really not an Insurance Bill.
It never was.
It is a Bill to relieve rates. No increased burden is going to be placed on the State if this Bill becomes law. By the State, I mean Great Britain as a whole. If the Bill becomes law there will be a transfer of the burden from the shoulders of the local authorities to the State funds and to the employers and the employés. My right hon. and hon. Friends associated with me on these benches consider that, as this Bill is a Measure to relieve rates, the increased burden which the Government propose to place on the shoulders of industry should be borne by the State itself. The Bill, as the Government advise the House, is for a temporary purpose. The total cost of the benefits is some £6,000,000, and in the report of the actuary the charge on the Exchequer amounts to £2,500,000. Therefore the total charge which will be placed on national funds if this burden is borne by the State as a whole amounts to £3,500,000. As this Bill will grant large relief to local authorities, I would ask if this is the time and the method by which those local authorities should be relieved from local burdens. We do not deny that the present situation places on local authorities heavier burden than they can well bear, but we do question the method by which the Government seek to relieve their burden and to place it on industry. In the earlier part of the afternoon the right hon. Gentleman reminded the House that the total contribution for sick and unemployed benefits amounts to 2s. Id.—contributions by the employers and the employed.
Under the Bill the Government propose to increase these contributions to 2s. 5d. I would ask, Is this a time to place this increased burden on industry when our manufacturers are being forced to meet foreign competition in every quarter of the globe? I think it would be far better for the State to assume the whole burden rather than to place it on industry. That point could be developed at great length, but I have no desire to urge it unduly this evening, although I mention it in view of the statement of the Prime Minister last week as to the vital necessity of reducing the cost of production. The appeal the right hon. Gentleman made and the speeches delivered in all quarters of this House, showing that Great Britain can only hope to regain her former prosperity if costs of production are reduced, all give point to the question whether the Government would not be wise to shoulder the burden of proposals under a Bill which is imposing a charge of £3,500,000 sterling on industry, rather than allow the burden to fall on the shoulders of employers and employed, who no doubt will endeavour to transfer it to the general body of consumers—a task which, in a falling market, is not easily carried out. If prices were rising, if the tendency was upwards, there might be some justification for the proposal of the Government, but, as one knows, they are falling rapidly in every quarter, and there is little doubt that if this Bill becomes law for six months, the burden placed by the Government will rest on the shoulders of industry and will to that extent retard our recovery—a recovery which we hope is in view.
My right hon. Friend the Member for Miles Platting (Mr. Clynes) pointed out that there are to-day millions of people in constant employment who are not going to be taxed under this Bill, or only to a small extent as taxpayers. Their shoulders are broad and they are numerous and powerful. Would it not be wise for the Government, instead of placing this burden on the shoulders of those who are presently bearing it, to itself shoulder the responsibility. It should quite clearly inform the House of Commons that the local authorities, through the extreme depression of trade, are unable to find the necessary sum to maintain their people in decent comfort, and they should ask this House not to put the burden on industry, but to let the State shoulder it—and not by indirect methods where it cannot be readily appreciated, and where the actual results are never clearly shown. During the Debates on this subject Members in all quarters of the House have shown intense sympathy with the out-of-works. We do not abate that sympathy one whit, but we do suggest that the methods which the Government are adopting may be wrong, uneconomic, and based on a false foundation, and, therefore, if my right hon.
Friend presses his Amendment to a Division, we shall have much pleasure in supporting him.
I am sure my hon. Friends and colleagues in the representation of the North of Ireland will desire to thank the right hon. Gentleman for the kind and sympathetic reply he has made to their appeal for the inclusion of Ireland in this Bill. We have always had some difficulty in persuading this House to deal with Ireland on the same lines as England, but still it has been a generally accepted principle that social and industrial measures for the people of Great Britain should be extended to Ireland. In asking that they should be, we are not asking for anything we are not entitled to, so long as we are represented in this House. The conditions in Ireland with regard to destitution and unemployment are very similar to those obtaining here, although perhaps we have a larger percentage of unemployment in Ireland than there is in Great Britain generally. I believe the figures are for Ireland 27 per cent, unemployed, and for Great Britain about 21 per cent. This great amount of unemployment is explained by the fact that during the War we have done yeoman service on behalf of the nation in the production of various articles, and thereby depleted our stocks of raw material, thus rendering our businesses and factories idle for the moment.
Then, too, there is the decline in shipbuilding, which we hope may soon show an improvement. These being the facts, there was every reason why the Government should reconsider their decision not to include Ireland in this Bill. We are obliged to the right hon. Minister in charge of the Measure for the interest he has taken in our case. I waited upon the Prime Minister, together with some of my colleagues recently, and appealed to him to bring Ireland into the Bill, but the right hon. Gentleman told us that at the moment he could promise nothing. Therefore some kindly influence must have been at work to induce him to change his mind, and I rather gather we have to thank the right hon. Gentleman in charge of the Bill for that change. There is one point I wish to urge. If during the administration of this Act the powers are transferred to the Northern Parliament, I hope the Minister will see that there is no dis- location in the working of this machinery. We, in Ireland, are somewhat accustomed to rude shocks in this connection, and we shall, therefore, be all the more obliged to the right hon. Gentleman if he will see that nothing in the shape of dislocation occurs in this instance. He will thereby earn the wholehearted grateful thanks of the industrial community, which I have the honour to represent.
I share to some extent the disfavour with which this particular Bill has been looked upon in the speeches which have been delivered tonight, and I think it is rather unfortunate that of the Bills which the Government are proposing in order to solve the unemployment problem they should first have produced this one. No doubt they have done so for the excellent reason that they want to get the benefit working, but it is undoubtedly the worst of the Bills, and so far from working any direct benefit on the question of unemployment it will have a reverse effect. Before saying a word or two on the more general aspect of the question, I would like to take up a point mentioned by the Minister in his opening remarks, when he referred to a speech of mine last week in which I pointed out that the agricultural industry is the only considerable part of the community in the United Kingdom for which practically no provision is being made. The right hon. Gentleman stated that the agricultural community was consulted last April and was not then willing to be included in the provisions of the Insurance Act. Let me point, however, to what is the character of this Bill which he is bringing in today. On his own showing it embodies a principle which he does not like, and he only brings the Bill in because it is intended to meet a need which has arisen during the past few weeks. That is equally true of the agricultural industry. The need of that industry has only arisen within the last few weeks. Last April wheat stood at somewhere between 84s. and 86s., to-day it stands between 42s. and 52s. The right hon. Gentleman has not given any adequate or sufficient reason when he says he could not include agriculture in any Measure dealing with unemployment at this particular crisis, simply because the people in that industry-were not willing to come within the scheme last April. That, I submit, is no reply at all.
I view with considerable apprehension the prospects of unemployment in agriculture during the coming winter. One passage in his speech, when the right hon. Gentleman was questioned what the Government were actually proposing to do for this industry, simply repeated what the Prime Minister himself had vaguely indicated, that some money would be spent on giving employment to agricultural labourers on afforestry, land reclamation, and other relief works. But what about those parts of the country to which such schemes could not apply 1 The need of those parts of the country is just as great as in other parts where such schemes may have beneficial results, and if you are going to deal with unemployment in an adequate way, if you are going to make your proposals affect the whole body of the community, it is unjust to leave one industrial section out of account. With regard to the Bill itself, I do not think sufficient emphasis has been laid on the good which is embodied in it. I am not going to argue whether the principle of the dole is right or wrong. If you are to have a dole, not only must it be less than the average man can earn in wages, but it must also be proportionate to the responsibilities of the man who receives it. In this Bill we have, for the first time, a provision that a married man with children shall receive greater assistance from the State than a single man. That is something gained for those who assert, and assert reluctantly, that the State has a responsibility for its indigent citizens. That is the good part of the Bill.
The bad part of the Bill, which seems disproportionate to the good part, will be the effect of taking the £3,500,000 sterling from productive industry. It can only have two or three results. Either the money will come out of profits, in which case the development fund, which alone can provide additional employment, will be diminished by so much, or else it will come out of wages which are already sufficiently low. The third alternative is that it would be added to prices, but it is very doubtful whether it could in fact be so added during the coming winter. Therefore the only effect of this proposal will be that it will fall upon productive industry, and thereby create more unemployment. How are we going to mitigate the evil effect which will result from that? Admittedly any form of dole must have evil effects in the way I have described. How are we to minimise them? I hope the Minister will take to heart the suggestion made by the hon. Member for Greenock (Sir G. Collins). It is desirable in my opinion that the State should find the whole of this money. It will amount, I believe, to something like £5,000,000 or £6,000,000 a year, and the advantage of its being found by the State, instead of being put as a contribution upon a special part of the industrial public, is that it will make everybody contribute to the fund which is being created to tide over what is everybody's crisis. I have always asserted strongly my belief in the principle of both employers and workmen contributing to a fund from the results of which they themselves draw an advantage, and, therefore, I feel strongly that we should not ask either employers or workmen to contribute to a fund from which they will not benefit. If the right hon. Gentleman replies that it will benefit the workmen at least if they fall out of employment in future, then I say that h^ is damning his own act, because it is his act which will create unemployment and throw those men out of work.
Let me close by asking the Minister whether, in view of the admittedly bad principle that is embodied in this Bill, he will not use his best endeavours in the Committee stage to minimise the evil effects which he himself submits must result from it. He tells us to look at the whole body of legislation which the Government has brought forward at the present time. He cannot tell what the effects of that other legislation will be, but he can what the effects of this will be. That is the difference. If he wanted us to take his advice and look at the various trade credit schemes and other schemes which the Government are bringing forward, he should not have brought this in first, because we know what effect this is going to have, and neither the right hon. Gentleman nor anyone else can tell us what the effect of the rest is going to be, except that we can fairly safely assume that it will cost a good deal of money. Therefore I would ask the right hon. Gentleman to bear in mind two points. The first is that he has given me ho satisfactory answer with regard to the agricultural community. Cannot he do something to satisfy those who feel now that they have been let down by the right hon. Gentleman and the Government? The second point is, cannot he do something to spread the admitted tax, the admitted tribute which he is exacting from the industrial public in proposing this Bill, more levelly over the whole body of the community 1 If it becomes a choice between penalising productive industry and penalising the rentier—the man with a fixed income—then, in times of national crisis, it is the latter who must go to the wall. That is why I feel strongly that the right hon. Gentleman has not been wise in selecting a part, and that the living part, of the State, in order to impose this additional check upon its progress and growth.
One hon. Member above the Gangway mentioned that he did not know of any case in which a worker had spoken of his contribution to any insurance fund as a tax on wages. It is rather singular that only this morning I received a letter from a constituent in Stockport, asking, "What action are you taking for the abolition of the present tax on wages?" There, at any rate, is one worker who speaks of it as a tax on wages and would like to see it removed. He is not the only man from Stockport who has pleaded against excessive taxation, as I will explain in a moment. I would ask hon. Members kindly to refrain from speaking of the benefits under this or any other insurance fund as doles. I certainly think that, when any man or woman makes a contribution to a fund, it ought not to be termed a dole when they are being paid the benefits for which they themselves have paid. There seems to be a great variety of opinion as to whether this ought to be called a tax or not, and, if it be a tax, as to who will pay it. One hon. Member above the Gangway said that the workers would pay not only their own share of this particular unemployment insurance, but also the share of the employers. I agree, and I will go further and say that they will pay the other—they will pay the part that is included as being paid by the State. I make no reservation with regard to that, because I firmly believe that not a part but the whole of any tax of any description is paid by the workers. I do say, however, that certainly all the workers do not sit on those benches, and all the workers are not those who are represented by them. People who do not w6Vk at all, namely, those whom we might term the idle rich—there are not very many in this country—are the only ones, so far as I can make out, who do not pay their share, or at any rate some share, of taxation.
I would ask the House to consider what really has arisen from the Debates on unemployment since the Prime Minister first introduced the subject last Wednesday. I think that both the Prime Minister and the right hon. Gentleman the Member for Platting (Mr. Clynes) served a very useful purpose by the way in which they tackled the subject. I should like also to congratulate the hon. Member for Westhoughton (Mr. E. Davies), who, at the conclusion of his maiden speech, gave the real reason why this subject is such an appalling one at the present time. He said—and the same thing was said in a rather different way by the Prime Minister and by the right hon. Gentleman the Member for Platting—that what we needed was more good will. I believe that that is the crux of the whole question. It is said that the unemployment from which we are suffering has been caused by the War. It has not been caused by the War alone, but it certainly has been caused by war, for there have been two wars—the War in which we engaged with other nations, and the war in which we have been engaged amongst ourselves. Until we in this country cease to be at war and understand each other better, and, as the Prime Minister advised us to do, show more confidence in each other and get to closer co-operation, so long shall we have this great problem of unemployment.
I may be asked what I suggest as a remedy. I would ask for the remedy for which I have asked before, and I am glad to see that the Government, at long last, have the courage to admit that they should do something to look after the interests of those who are directing industry, as well as of those who are engaged actively in it as workers, for the simple reason that their interests are and must be absolutely and essentially identical. I said 12 months ago that any form of taxation which overburdened the industries of this country would eventually lead to unemployment. It makes no difference whether you pay in unemployment benefit or anything else—it is a tax on industry; and a tax on industry is and must be in the main a tax on the poorest of the community, because, however taxes are felt, they must be felt most by those who have the smallest margin above their sustenance level. My point, therefore, is that we ought to try to encourage and not to discourage industry. I pleaded 12 or 15 months ago for a lower bank rate, that is to say, for cheaper money, so as to encourage industry. In my opinion, practically the only reason why we have seen a certain amount of revival in industry is because both sides of the House—the Government and the Opposition—have begun to realise that it is essential that we should regard the interests of all those who engage in industry as identical.
I said just now that my friend whose letter I read was not the only one who made protests about taxes, and I should like, if the House will bear with me, to give an instance to show how, long ago, industry was being hampered, as I believe it has been during the last 12 or 15 months, by excessive taxation, bringing in its train unemployment. A Minister who sat on the Government Benches of his day, Mr. William Pitt, introduced in 1784 a tax on horses. How do you think a man in Stockport, named Johnathan Thatcher, showed his disapproval of that? He was engaged in industry, and wanted to get on with his job. He wanted to get from one place to another quickly, and to do that he wanted to ride his horse. The Government said, "No, we will put a tax on horses." Johnathan Thatcher said, "You may put a tax on horses, but I will not pay it, although it may mean that I shall go about my business in a slightly slower way "; and so he saddled his cow and went to market on his cow, as a protest against the tax which was not repealed until 1875. We do not want to put any tax on industry that will debar industry from going on. We want to encourage it, and I think my Friends on this side will realise that their view that, when industry was prosperous and doing well, those who were engaged in industry as workers were of necessity doing badly, was wrong. My opinion was then, and still is, that we must go together, and that it is in the best interests of the workers that industry as such should be prosperous, and that full time should be worked.
I may be asked what is my remedy. It is reduced taxation. I would like to make a suggestion in that direction which would, perhaps, tend to solve the problem of unemployment. I believe it is agreed that excessive taxation will hinder employment, and in that connection I should like to mention the manner in which the Minister of Labour absorbed nearly all the disabled ex-service men, by means of a scheme propounded by His Majesty the King, whereby every employer, so far as possible, should for the sake of honour take on a certain number of disabled men. I would make to the Minister of Labour this suggestion. There are 1,600,000 workers out of work at the present time in this country and there are 400,000 factories. If each of those factories could take on four additional men the problem would be solved. Why should we not make an addition to a scheme like the one now proposed, which, after all, is only a palliative, although I think all of us must acknowledge that we are bound to have palliatives 1 Why should we not, for six months, say to every employer in this country—not merely for the sake of honour, although there would be a certain amount of honour about it, but for the sake of material interests—that for every man taken off the unemployment books there would be granted a rebate on Income Tax of 5s. a week? To show that such a suggestion is not selfish, I would give the assurance that no firm with which I am connected, at any rate, would claim any rebate of that sort. I believe that at any rate it would be a step in the right direction, and is not that what we want? We do not want to study so much how we are to keep these men unemployed, as to study how to find them work. If we do that, the problem will solve itself. It is all very well for hon. Members who have never been in a position of poverty to slight any gifts of this sort to those who are poorer than themselves. It has been said that to ask is difficult, but to give is sweet, and it is in that way that I think we ought to look upon a question of this sort. No one knows the feeling in the minds of men and women who cannot find work for themselves and have no food or clothing for their children. I should like to ask the Minister to think about one point in the Clause in which wives are mentioned. Supposing a widower has his mother as his housekeeper. So far as I can gather, he would not receive the 5s. benefit, because the Clause reads:
I should like to assure the Minister in charge of the Bill that I am going to support it by my vote in the Lobby, because I believe it is a genuine contribution towards the solving of the distress caused by unemployment. The question of unemployment divides itself into two distinct parts, the one which deals with the prevention of unemployment, that is, providing some means whereby these depressions in trade are to a great extent mitigated, and people are not thrown out of work, and the one dealing with distress when it arises. Now the Government are faced with an acute crisis in trade. They have very acute suffering in the industrial areas, and they are bound to do something at once. I ask them to consider whether they could not broaden the basis on which the Bill rests by bringing a greater number of people into insurance. I quite realise their difficulty in altering their scheme at present, but there are many favoured classes of workpeople who are not so liable to unemployment as the other classes, and I think the time has come when all these people should contribute towards the common fund. The right hon. Gentleman told us that domestic servants could not be included because of the difficulty of getting people to undertake domestic service. But that is no reason why the employer of a domestic servant should not contribute his quota to the unemployment insurance fund. While the domestic servant should not be liable to contribute if he or she does not draw benefit, certainly the employer ought to contribute his quota, in addition to that of the State, towards the common insurance fund. The most serious part of the Bill is that it is piling up burdens upon industry. We are already as heavily burdened, certainly in the iron trade, as we can support. We have acres of works standing idle, men thrown out of employment and the rates piling up, all the works being liable to rates. They are also liable to the burden of Unemployment Insurance and Health Insurance so far as they contribute to the people they employ, and the point has almost been reached when industry is going to be very seriously crippled by the burden which is being piled upon it, and although our works are bearing all these burdens we see foreign iron and steel coming into our district and bearing no burden at all of rates and very little of taxes. If there is to be any equalisation of rates and burdens generally, it not only ought to be equalised as between district and district but as between individual and individual. The manufacturer should not bear the whole of the burden and the merchant go scot free except so far as relates to the two or three rooms in his offices.
But the real point I wish to make is this. I want to make an appeal to the right hon. Gentleman for consideration for unmarried men. They are getting nothing under this. In this employment period there are eight months during which an unmarried man is entitled to receive 16 weeks' benefit, and it may be 22; that is, in a period of 33 or 34 weeks he is entitled to receive £22 15s. That is practically 10s. a week if he is out of employment the whole of the period. He cannot live on that amount, and he has? reached the end of his resources. It was brought very vividly to my attention the other day by meeting a man I had known for many years outside the municipal buildings in Middlesbrough. I asked him where he had been and he told me he had been to see the guardians to see if he could get outdoor relief. He said he had been refused it because he was an unmarried man. I believe that is the law. He was told if he wanted relief he had to-enter the workhouse, and he said to me, "You have known me 30 years and you: know I have never been in the workhouse, and I am not going there. "I said," Are you not getting two days a week at the works?" He said, "No, the preference there is given to married men." So he was debarred from getting his two days a week work because he was a single man, and he was refused any allowance from the guardians because he was an unmarried man and would not enter the workhouse. I think that is very hard. I do not want to belittle the assistance which has been given to married men and their wives and children. That is very necessary. But I think the right hon. Gentleman might give something to these unmarried men, of whom there are a great many. In one list that came before me the other day I was surprised to see how many unmarried men there were. Of 160 men, 42 were unmarried— that is one-fourth of the total—and these men cannot live on what they are getting under the Insurance Act. I would suggest to the right hon. Gentleman—this is a friendly criticism—that he should do something for this class of man—if he has been out of work for, say, three months, to try to increase the benefit which he might draw under the Insurance Act. I would plead very hard for half-a-crown for the unmarried men. I know by the look on the right hon. Gentleman's face that he thinks I am asking a little too much, but they are getting no consideration from the employer because they are unmarried; they can draw none of the benefits from the guardians because they are unmarried, and they are really very hard hit.
I should like the Minister to give us some information as to the provision which instructs the guardians to take cognisance of the allowance which the insured persons is drawing under this Act. I hope he is going to give us some assurance that that is not intended to whittle down the benefit of this Bill. Is it going to make this of no value to the insured person? I hope he will give us some assurance, and, if necessary, put some provision into the Bill which will prevent the guardians from absorbing the whole of the benefits which ought to have gone to the insured person. I believe this Bill is a step in the right direction, and is a very valuable acquisition for the working classes. It has become the custom to belittle the Insurance Act, but the provision of the Unemployment Insurance Act has been a godsend to thousands of working class homes in my own constituency.
I am going to vote for the Bill, although I do not like it. Apart altogether from the arguments which have been used as to where the money is to come from, I welcome the Bill as a little towards relieving some of the most dire distress that exists amongst the mass of the unemployed. Those who are out of work are not out of work because they have any double dose of original sin. It is because they have been in the wrong place at the wrong time and happen to find themselves in the ranks of the unemployed. Therefore it is but right that the community as a whole should bear a little more of the burden. The hon. and gallant Gentleman who has just sat down has raised a point which, it seems to me, however much may be said for it, is quite outside the scope of the Bill. The Title is
"a Bill to make temporary pro-vision for the payment of grants to unemployed workers towards the maintenance of their wives and dependent children."
Consequently, whatever may be the feelings of the Minister in regard to the point thus raised, it could not be done under this Bill. The point has been raised as to ranking the mother with the wife, and if that is put forward I should certainly view it with sympathetic consideration, and, unless I hear something to the contrary, should vote for it.
That is exactly why I raised the point on the Second Reading, as I knew I should be debarred from raising it in Committee, and the Government could amend the Bill themselves to meet that point.
They could amend it to meet that point if the mother is to be regarded as a dependant, but, as I understood the hon. and gallant Gentleman, he was putting in a plea for putting the single man in the Bill and giving him increased benefit from the Insurance Act. It seems to me that is outside the scope of the Bill, and it is also not at all as strong a case as he would like to make out, because after all a married man is getting something in consideration of his wife, or his mother and his dependants. Putting the wife and dependants on one side therefore, the married man is getting nothing out of the Bill for himself. H3 gets it for his wife and his dependants. Not only is it outside the scope of the Bill, but it seems to me the hon. and gal- lant Gentleman has made out no case for any special consideration for the single man.
Can the right hon. Gentleman find anywhere in the Bill where provision is made for a single man who has no father for the 5s. for his mother, or for young children dependent on him?
8.0 P.M.
As I say, if you can define dependants to cover people who are dependent upon a single man, that is within the scope of the Bill, but that is altogether a different point from that which has just been raised. I am quite in favour of putting in any dependant on a single man, whether it is a mother, brother, sister or anyone else, but that is quite a different thing. The hon. Member for Greenock (Sir G. Collins) said that this was only going to relieve the ratepayer at the expense of the taxpayer, that those people who came under the provisions of the Bill and got the additional money would not go to the guardians, and that, therefore, the guardians would be relieved to that extent. I can assure him that if he knew the working people a little more he would not talk in that way. The percentage who now go to the guardians is comparatively a small one. I have no figures, but I am speaking from my own knowledge of the working people, and I am quite sure that the members of the older mechanical trade unions of this country do not go to the guardians at all. Therefore, whatever they get from this Bill will be an additional benefit, and will not relieve the guardians. The next point was raised by the hon. Member for Plymouth (Viscountess Astor) in regard to a wife who is supporting a sick husband. If a wife is in that position she ought to be placed exactly on the same lines as the husband who is supporting a wife, and she is entitled not only to the 1s. per member of the family, but she ought to have 5s. in respect of her sick husband. I hope the Minister of Labour will sympathetically consider that point.
I am going to vote for the Bill, although I do not like it. I do not like it because it does not put the burden upon the right shoulders. In an unguarded moment last week I said that if an Amendment were put forward to draw the money from taxation I would vote for it; but I was reminded by the right hon. Baronet the Member for the City of London that such an Amendment would be out of Order. Therefore, we have to face the situation as it stands, and we have either to vote for the Bill, with the relief that it gives to people out of work, or we have to vote against it. I have decided to vote for the Bill as the least of the two evils presented to us. I would much rather that the money had been taken from the ordinary taxation, mainly because I do not like the idea of additional burdens being placed upon industry. I believe that this may have the effect of so hampering industry as to create some degree of unemployment. I do not regard the 2d. from the worker as any great hardship. The working man who is now in work ought to think himself lucky, and I believe does think himself lucky. The workman who is called upon to pay the extra 2d. will pay it willingly, and without any grumbling, and I say that because of my experience.
Let me remind hon. Members of what has taken place before. The Insurance Act has been extended several times, and I remember that on each occasion cases have been made out in respect of certain industries which had less unemployment than other industries and did not want to come into the Bill. Take the boot and shoe trade. I remember the terrible hullabaloo that was made, not only here, but outside on that matter. Figures were given, and the hon. Members who represented the boot and shoe industries said that they had very little unemployment and did not want to be insured in the Government scheme. They were, however, included, and I have not heard the grumbling that was predicted. On the contrary, I believe that the boot and shoe makers are very glad that they have been included. Therefore, it is not from the point of view of the worker that I look upon this Bill as faulty, but from the point of view of industry as a whole, which is heavily saddled at the present time with taxation. I will not say that industry will not be able to bear this additional amount of taxation, but it may create a little additional unemployment.
A final word in regard to what has been said by the hon. Member for Stockport (Mr. Greenwood) and the hon. Member for Plymouth on what seems to me to be better than all these alleviations, good as they may be, and which would have the effect of lessening unemployment and altering altogether the proportions of taxation to be imposed. I heard the Noble Lord (Lord Eustace Percy) referring to the terrible percentage of taxation that industry had to pay. He said that Sir George Paish had stated some years ago that industry could bear, but could bear no more than, 17 per cent. The Noble Lord said that we had now reached 17 per cent., and that there was great danger in imposing any additional taxation upon the country. It seemed to me that the Noble Lord assumed the output of the country to be stationary. We can increase that, and, to my mind, it is the best of all solutions. Let us increase that, and then if your taxation remains the same it will be less than 17 per cent, upon the total output. It is towards that end that we all ought to strive. I appeal to hon. Members who have special claims to represent labour, and have more influence with labour, more than any other people, and I would appeal to the working man, to forget about the evil past, if it is possible. I know about the evil past; I have experienced it. I know that when workmen were unorganised, when they were pressed to accept forms of payment by result, that very often, almost invariably, those forms of payment by results tended against their interests. Employers took advantage of their helpless condition, and in proportion as they put increased effort into their work the price per job came down, so that, generally speaking, the only satisfaction they had for working harder was that they had made more profit for the employer.
Let me say to those who may hear my words, or those who may read them, that we are now living under absolutely different conditions from those that existed then. Those days have gone. Let me give a little personal experience, one of many. I remember working in a little shop in the East End of London, and the boss came to me one day and asked me if I would agree to take a certain price to do the job by piecework. We agree. I think it was 2s. for the job. The first week I was engaged on the job I earned £6 10s., and when it came to pay-day the employer was almost paralysed. He had never experienced anything of the kind before. A wage of £6 10s. for an ordinary workman was something altogether outside his philosophy. "It was difficult to get my £6 10s., but I did get it. Soon afterwards I left. I know what would happen when I left. The man who came after me would not get 2s. for the same job. He would get about 1s., and would manage to earn £3 or £4, and in his turn he would be succeeded by somebody else, who would only get 9d. That is the sort of thing that went on for many years. The workman was unorganised and helpless. I am not blaming the employer altogether, because he also was unorganised, and, therefore, subject to the conditions of his fellow-employer, and if his fellow-employer cut his workmen he had to cut. At all events, that was his explanation.
I want to say, with all the emphasis at my command, that we are now living under different conditions. We have managed to apply, to some extent, the collective principle. We have to some extent got in our hands the power to apply commonsense, and these old conditions no longer apply. I am speaking from memory, but I believe I am right in saying that in my own trade all the employers are now willing, if men engage to work by piece on any method of remuneration by result, to guarantee to the man one-third, I think, over his time rate of wages. They are willing also to agree that, if there is any method employed by the man to increase output, they shall not get the advantage of that, but that he shall get the advantage. They are prepared to do this, with all sorts of safeguards, not for themselves but for the man, because they have come to realise that the system under which they had to cut and cut the price was something not only against the man but against themselves as well. They have come to realise that if the men are to be induced to put their hearts into their work, they have to be assured of fair play. I believe that that fair play is now open to the workman.
My philosophy is, that if you want to decrease unemployment, if we want to decrease the percentage of taxation which is imposed upon industry, and which the Noble Lord says has now reached the percentage limit, we must concern ourselves not only with the actual amount of taxation, but with the total output of wealth in the country upon which that taxation is to be levied, and the working class must rise to a realisation of the respon- sibilities that now rest upon it, but not as a separate class. That time has come in this country in which every man as a citizen has a chance to paddle his own canoe. In proportion as the workmen rise to a realisation of their position as citizens, and in proportion as they get away from a recollection of the old evil times of 20, 30, or 40 years ago, they will be doing something to their own credit, and something which will do more to relieve us of this terrible phantom of unemployment than this or 20 such Bills can do.
The right hon. Gentleman who has just spoken has traversed a great deal of the ground with which I proposed to deal. I should, however, like to say something about the way in which this money is to be raised to meet the various charges. I propose to vote in favour of this Bill. I welcome it. I do not think the Government have in any sense gone too far in their proposals, but I also find myself in a particular position. I find that I am in sympathy with the Amendment which has been put down by the Labour party. Perhaps I am in sympathy with it from a different point of view, but I do agree with the words of the Amendment which say that this Bill because industry is saddled with this charge?
I agree that somebody must bear the burden. I am not objecting to the suggestions that are made, but I do think it monstrously unfair, and I have always thought so, that these burdens should always be placed upon the employer and the workmen. I have often raised this point before, and I have always been told glibly, "We do not place this burden upon you because we think it is right for you to bear it. We do not want to penalise you because you are an employer. We do not think that you are doing a bad thing in this world by being an employer, but we put this tax upon you because it is the easiest way of getting the money." That is the truth. And then there is the terrible fallacy that it is an easy thing to put any tax you like upon the employer and that he will get it back by raising the price of his goods. I wish that those who say this could invent such a little heaven, in which you had merely to raise the price of your goods at any time to meet the burdens put on industry. In certain trades and in certain conditions it is possible to do this, but to-day it is impossible for British manufacturers further to increase the price of their goods, and it is impossible for them successfully to stand this further imposition which is placed upon them.
Take other sections of the community. Say there is a very rich financial house in the City of London which makes, perhaps, many hundreds of thousands, or at any rate many thousands, of pounds more per year than a big manufacturing firm employing hundreds or perhaps thousands of workers; while that particular financial firm or banking establishment may employ merely a half-dozen or a dozen clerks. That firm escapes entirely the responsibilities of this unemployment. I do not think that that is right. There is not much use in merely criticising the Bill, which I think must be supported, but it would be far fairer to put a per capita tax on every adult in the United Kingdom. I do not think that any man living in Kensington or anywhere else would object in the least to pay his 2d. a week, or more if he likes, and it would be easily collected, if the head of the household had a book in which he had to affix stamps, or something like that, so that every adult throughout the land who wished to help his brother and sister who are out of employment, whatever class they belong to, should contribute. If such a system were introduced and the head of the household had to be responsible for the collection, I believe that in the end you would collect a tremendous lot of money, the burden would be spread over the whole of the people, and the result would be very much better. In any case, however, it is done, the present system is unfair and even dangerous, and it may have the effect of making the disease still worse. Some other means of effecting a cure must be devised. Therefore, though I support the Bill, I would ask the Minister to consider whether he cannot, even at this late hour, save industry from having this burden placed upon it.
During this Debate the Labour party have had to sit down quietly and listen to a great many lectures. One would imagine that the condition of this country to-day was the result of some iniquity committed by the Labour party. It does not help us much in dealing with this question to indulge in recriminations, but we on these Benches cannot be lectured perpetually from various part of the House without defending ourselves. I am conscious that on the 1st of April this year 1,200,000 miners were given notice by the colliery owners of this country. As a result the coal industry was idle for 13 weeks, and yet the miners are blamed in this House for that 13 weeks' stoppage, when it was the employers who discharged every workman, discharged the men in the stoke holes, and discharged the men who were looking after the machinery and the pumps, and then, when the inevitable result ensued, the miners of the country were blamed because there was no coal. That kind of criticism does not help to solve the problem with which we are dealing. The Labour party has a very good answer to the charges made.
The staple lecture that we get is that there should be more goodwill between employers and employed. Personally I do not think that any amount of goodwill would solve this problem. The Prime Minister attributed the root cause of the trouble to the War. The War may have been a primary cause, but a great many things have happened since, and it would not be difficult to show that the policy of the Government has aggravated the conditions produced by the War. I do not suppose that on the Second Reading of this Bill I would be in order in dealing with the Peace Treaty, but if I had to give a reason why things are as they are now, I would point directly to the coal clauses in the Peace Treaty. Under those clauses Germany has to supply to Belgium 7,000,000 tons of coal annually for 10 years, to supply France with 8,000,000 tons annually, and to supply Italy with from 4,000,000 to 8,000,000 tons annually. That is the root cause of the miners being unemployed now. The German miners are working overtime, while our men are walking the streets. When the mines are stopped the auxiliary industries at once suffer—transport, dock-workers, and ships lie idle in harbour instead of steaming the seas with coals from the Welsh mines. As a result of cheap coal from Germany, we are unable to compete with Belgium in the production of steel.
I think the hon. Member is travelling rather far from the Bill. Reference to causes of unemployment is not out of order, but to dilate upon them is out of order in a Bill which attempts to deal with remedies.
I wished only to quote some proof from Lord Weir. The problem with which we are dealing is one, the magnitude of which the Government do not appreciate. The main charge we lay against the Government is that the assistance which it is proposed to give to the unemployed is altogether inadequate. It would be as well briefly to re-state the problem as we see it. In round numbers there are 1,750,000 unemployed. These, with their dependants, number fully 7,000,000 persons, and these people are without physical and tangible means of subsistence. In some cases these workers have been idle for 12 months, in some cases for nine months, and in the bulk of cases they have been idle for six months. Their savings are exhausted. A man and woman came to me on Saturday night last. They told me that they had never been in receipt of Poor Law relief in their lives, but they had spent £148 of their savings and now they had to accept Poor Law relief. They were a husband and wife who had reared 10 children in this country. Such cases show that the savings of the people are exhausted. Their credit at the co-operative stores is exhausted, as the latest figures with regard to co-operation show.
Local authorities have been dealing with this problem, but it should have been dealt with by the Government from the start. Instead of the Government dealing with it there has been a great battle of wits between the various Ministers and the local authorities, and in many cases the local authorities have come out unfavourably from the contest. In one of the areas of Monmouthshire—I need not specify it—the rates to-day are 38s. in the £1, and the Bedwellty Board of Guardians is overdrawn to the extent of £70,000. That gives some idea of the nature of the problem—destitute people, bankrupt local authorities, all savings gone, and nothing left but what is to be provided under this Bill. After stating the fact boldly in that way, it is evident that the assistance proposed is entirely inadequate. I was at a conference at Cardiff at which there were hundreds of unemployed, and they said that the Government was mocking them by bringing forward proposals of this character. The meeting broke up in uproar, entirely because of the policy of the Government.
The Government proposes to solve this problem by giving 15s. a week to a man. Where is the man who, with the cost of living 110 per cent, higher than it was before the War, can live on 15s. per week? It is heart-breaking to go to the regions of the unemployed. These men are destitute and their clothes are worn out; they are in the lowest depths of poverty. To ask a man to live on 15s. a week is a mockery which shows the bankruptcy of the Government in dealing with the question. If 15s. is not enough for a man, what shall we say of the Government offer of only one-third of that amount for a woman? I do not know where the Members of the Government live. I wish they would come into my constituency and expound this great policy. Let them go down amongst the unemployed and we would see then whether they would offer a miserable pittance of this kind. If 5s. is not enough to maintain a woman, what shall we say of 1s. to maintain a boy or girl up to 14 years of age? That is in a case where there are four in a family. If there are five in the family there is nothing for the fifth child, and if six in the family there is nothing for the sixth child.
The Labour party demand that the Government should budget for unemployment. The unemployment we have with us to-day should not be dealt with by a temporary expedient, but here we have displayed the same lack of foresight and of statesmanship as the Government have displayed in dealing with every question they have handled since they came into power. The Government should not look at this question as a temporary one at all. There is no evidence that this will be a temporary evil or a temporary difficulty. All the evidence goes the other way. What is the difficulty in the way of dealing with this matter as it should be dealt with? This is a mere bagatelle as compared with the War, yet we spent £6,000,000 a day on the War. [HON. MEMBERS: "£8,000,000!"] I think we spent more in one day during the War than the Government are putting into this business altogether. How is it that the Government do not rise to the occasion and deal with this as they would have dealt with a War problem? I think I can give a reason. When we were at war everybody in the country was in danger and everybody in the country was resolved to face the difficulty with which we were confronted, but at the present time only one section of the people are in danger—only the poor unemployed are in danger—and therefore we have only a temporary expedient brought forward by the Government to deal with a national evil and a national peril. I do not know what the Government think is going to come out of this business, but I wish I could appeal to them as I think the unemployed would appeal to them if they were in this House. I wish the Government could see the hopeless men and women and the starving children that are to be seen in every village and town almost in this country. If the Labour party were sitting on the other side of the House they would deal with this question; they would do something to develop the resources of this country, but the present Government have got their eyes everywhere except on their own country. They want to send the unemployed away to foreign countries instead of establishing them on the land at home. The land question is too big to be dealt with in this Debate, but it is at the root of this difficulty. We have only 600,000 people to-day engaged upon the land, whereas a century ago there were 3,000,000. If the Government were really in earnest they would look to their own country and attempt to develop its resources. If it is not too late I appeal to them to scrap this Measure and bring in one which will meet the problem, and not a Measure that mocks the unemployed with a wretched pittance. This is not a question that should be dealt with by piling further burdens upon the worker, by asking the worker who is already overburdened to still further contribute to provide the remedy for an evil for which he is not responsible. If the Government were to deal with it, as they dealt with war questions, they would save millions of people from misery and despair. I ask them to review their whole policy. The Labour party otherwise will have to vote against the Government proposals.
If the speech to which we have listened is any measure of the opinions held in that part of the House from which it was delivered, then the Government are regarded there as occupying the unique position of being at once the cause of unemployment and also the doctor who must prescribe the cure. It is apparently considered by hon. Members opposite that the Government should pay the whole cost of this additional grant of 9s. to these men who, previous speakers have complained, are now only receiving 15s. The proposal to raise the 15s. to 24s. at all events does credit to the judgment and the contrivance and the good feeling of the Government. No advantage is gained to the reputation of this House if any attempt be made to let it be understood in the country that the Government is taking a cynical and unsympathetic view of a situation which is enough to make the heart of any man bleed. The proposal coming from that quarter of the House that the whole cost of this addition to the provision for the unemployed should be borne by the Government would have more weight with the rest of us, if it were not so like other proposals coming from the same quarter. There, the one proposal, the sum total of politics, seems to be that everything should be paid by the Government. I hope the Government will on this occasion pay no more attention than usual to the plea that the Government which does everything, and generally does it wrong, should also pay for everything. It is suggested that the working man does not wish to pay 2d. or 3d. a week while he is in work to help his brethren who are out of work. I do not believe that for a moment. I believe the working classes of this country are willing to help their brethren and their sisters who are out of work. It is also suggested that on the employer's side that the employer should not be taxed, because then down will go the industry of the country, and we shall have no income to pay anything. Both these pleas should be set aside. We have a precedent in this matter which is worthy of attention, namely, the recent Unemployment Insurance Act. That was a definite attempt to get the whole cost of these matters off the State and a way opened whereby voluntary bodies, more closely and intimately and effectively associated with industry than any Government could be, should in time shoulder the whole responsibility and cost of running such schemes.
This State has declared itself in favour of the contributory principle, and all the things which have been said against the contributory principle were said when the main Measure was carried through this House not so very many months ago. On that account they tell less to-night, because we have heard them all before, and the case is not really so very different. I want to suggest other standpoints from which this can be viewed. The Prime Minister, in his long speech on unemployment the other day, said many good things, but nothing better than that the cure of unemployment did not lie with the State. Any Government can ruin trade. The best thing a Government can do is to keep its hands off. The Prime Minister intimated this clearly, that it was for those who were engaged in trade and manufacture to improve the state thereof, and this little Measure, meant, in spite of what has been said by the last speaker, to raise a grant from 15s. to 24s., seems to me to strike the right key. It says the man ought to help, and the employer, and the State. Personally, I could wish that the help of the State were less, for I think it is only by the co-operation of all the people who are chiefly concerned, the various classes of people who work with their heads and their hands, that this difficulty can be got over, and I defend the Government, if they need defence, on that ground, that they are hanging out a good flag to the nation, namely, "Get together and get to work."
The Noble Lord the Member for Hastings (Lord E. Percy) made a striking speech, in which he alluded to a recent return from the Treasury giving the total expenditure under all those Acts of Parliament which may be summed up as the social policy of the country. That return shows that in 1891 the total of that expenditure was about £20,000,000, whereas in the year ending March, 1920, it had risen to £257,000,000, and for the year ending March, 1921, the estimated total was over £330,000,000. I was not quite sure what deduction the hon. Member for Hastings made from these facts. He seemed to be against the Government's proposals and to desire that the State should shoulder the whole burden, and at the same time he complained that £330,000,000 was so heavy a sum that it was injuring and undermining the trade of the country. I would like to suggest that those very remarkable figures are not to be interpreted in that way, but rather in this way. Our social policy has taken the shape of a central Government subsidising all kinds of things, some of them conducted by private or quasi-voluntary bodies, the rest of them by local authorities. The State thinks it a good thing to do. The local authorities, or the people who ought to be doing it all on their own—I am not blaming them—are not doing it, and so the State says: "We shall do it, or we shall pay you in your localities to do it." So the State makes grants for this thing, for that thing, and for the next thing, and every locality and every interest is on the outlook for grants, and there is nothing so corrupting to politics as the continual expectation of grants.
I will quote again, as I have quoted before in this House, the question of elementary education. The central Government has to pay the great bulk of the cost of elementary education up and down the country. There was a time when that might have been just, because the country as a whole was not prepared to spend this money on educating masses of people, but are we still in a condition when the State ought to have to bribe the people up and down the country to educate the masses of the people? I want to suggest that the procedure there is for the local authorities to shoulder their own burdens and leave the central Government free. It was just, and necessary, and timely that the central Government should give a start to education, but if public opinion really believes that the mass of the people ought to be educated, why does public opinion wait for a big bribe from the central Government before it will do it? It simply gives us an internal circulation of money. Money is raised by the central Government in the localities, taken up to London, handled by bureaucrats, and after a proper amount of waste of time and money, grants go down to the constituencies. Everybody hopes they will get back more in grants from the central Government than they send up in taxes, and the sanity and the honesty of politics lies in a very great cutting down of the dealings of the central Government with the nation's money. That is a general principle. One of the things that the State should be separated from is unemployment insurance, and I hope the industries will take over the administration of that matter themselves. I am sure that from the general point of view of financial policy the view which the Government have taken in regard to this Bill is just and wise, and I trust that they will in no way depart from the point of view in that respect which they have taken up.
One would think from the opening criticisms of the hon. Member for West Leeds (Mr. J. Murray), who has just spoken, that the only adverse criticism which had fallen in this House with regard to the incidence of cost of the Government scheme was from the Labour Benches, but if the hon. Member had been in the House he would know that the last four or five speakers from the Government's own side had been the most critical and the most searching in their attacks on the incidence of the Government's proposals. It is true that all of them ended up by saying that, much as they objected to the form of the proposals, they were going to vote for the Government; but at the same time their criticism has really been most damaging in regard to the way in which the cost was to be raised, and it must be most refreshing for the right hon. Gentleman to have had the unstinted praise of the hon. Member who has just spoken. May I just examine the thesis he put forward? He strongly objected to the burden being borne by the State, and thought the local authority or the individual should bear their share, and he gave the instance of education, surely a most unfortunate one for his own case. His constituency of Leeds, with its teeming industrial population and large numbers of children, will have a rate of about 3s. in the pound, whereas the purely residential areas, like Bournemouth, or Eastbourne, or Bath, will have a rate of only one-third of that amount. Does he suggest you want to pile on the agony and cut off from Leeds and other industrial areas that assistance which comes from the National Exchequer, and that those large industrial areas, with their teeming population of children, should bear the whole cost of education, and that the State should withdraw its grants?
The same thing applies in the same degree to this particular case. I submit that, although it is perfectly fair, as, I think, practically all Members of the House will agree, that, under normal conditions, when you are budgeting ahead for normal times, industry as a whole—employer and employed—should pay its share to build up funds for insurance benefit, while things are more than normal, as they are at the present time, it is not sound to put on to an insurance scheme a further burden, and add to the immense cost it already has to bear. If you believe in insurance, surely give insurance schemes a chance, and do not cripple and bankrupt them by a proposal such as the Government are making. It has been mentioned on these Benches that the £22,000,000 built up by contributions from employers, employés and the State has already been taken by the State, I suggest to relieve the State of a burden which it ought to have borne itself. The right hon. Gentleman the Minister of Labour dissents, but let me put this to him. The ordinary industrial insurance built up from the first Act was based on figures actually submitted under normal conditions of trade and industry, and then follows this abnormal unemployment due to the War, when industry and trade cannot bear this tremendous tax. It was never calculated for in the contributions which the actuaries themselves put out in the first instance, and I submit that this abnormal unemployment this last year should have been borne as a contribution by the State itself as an after-war charge. That would have left intact the £20,000,000 which belonged to the insurance fund as built up by industry, and then, having exhausted that sum and raised more from the State and industry, I say it is unfair to burden the industry again with this further charge.
9.0 P.M.
Reference has been made to hardships. There are hundreds of thousands of cases of men who have not been able to draw benefit, whose claims have been rejected for good reasons, according to the Act, and have been outside the operations of the Act at the present time, who will not come into benefit on 3rd November, but will be left out in the cold, so far as these proposals are concerned. The real hardship to them is that you are driving them to the guardians and the workhouse, and in the end it is going to cost the State more than it would to bring them into this scheme. The right hon. Member for Gorbals (Mr. G. Barnes) referred to the independence of the worker, and his desire to keep away from the guardians. I have some statistics from my own district which confirm the view he expressed, and I put them forward in support of the argument that the benefits proposed to-day are inadequate, and inadequate in the best economic sense, because all the trade union funds are exhausted, individual workers have spent all their savings, in many cases amounting to many hundreds of pounds, and if you would only give them a more adequate sum under the Insurance Act you would keep them from going to the guardians, because they wish to be independent of any relief of that kind. During the height of unemployment, following the coal stoppage, in my own district, when 80 per cent, of the insured workers were out of employment, figures were taken out by the unemployment exchange and the local employment committee which showed at that time that only one in nine of the insured people went to the guardians to supplement the means they were drawing, though everyone whose family was large was entitled to go to the guardians and claim extra relief. Then as time went on and things got worse, that propor- tion changed, and to-day the revised figures show that where you have 40 per cent, unemployed, the proportion has risen to 3 in 9, and unless the sum is increased the proportion will rise. Surely it is better to pay 5s. a week more out of State funds in unemployment benefit than to drive to the guardians those who would keep away from the guardians as long as they could, and where they will get 35s., 40s., or 50s. a week. You may say that it comes out of one pocket and not out of another pocket; but, surely, in the end, it is the community who pays. We want to look at this thing from the large point of view, and not from the narrow point of view, and not shelve on to the locality that which should be a national charge. The Prime Minister, in debate last week, referred to the fact that this was a national charge. He referred to the mistakes made by the Government following the Napoleonic wars, when they left to the locality the burden which should have been borne by the State. But I submit that to-day, owing to the insufficiency of what the Government are doing, they are leaving to the locality a burden which should be borne by the State, and, as has been said already from these benches, to the locality, already bankrupt through the heavy charge which has come upon it. In addition to being unfair to the employed, it is unfair to the employers, because you have in many districts a large number of works which are kept going at a loss to the employers, and the effect of this Measure will be to tax the employers who, out of large public spirit, are prepared to run their works at a loss. You are taxing them and letting off those employers who, rather than face that loss, close down their works and throw the whole of their employés out of work. You are penalising the man you ought to help, and, therefore, I submit that, in the interests of the employed and of the employer, the burden of the charge should be taken on national funds, and not be left to a locality which is already overburdened.
The Noble Lord the Member for Hastings (Lord E. Percy) and the hon. Member for West Leeds (Mr. J. Murray) referred to the increase in public assistance, in which we are now spending £330,000,000, and we shall all agree that we have reached our taxable limit. But there is another side. It is not so much a question of what you raise, but of how you spend it, and surely, without adding 1d. to the existing taxation, we might spend more wisely some of the millions which are being raised this year through the National Exchequer. With money saved on armaments, you would be able to add to your insurance fund, and be able to relieve industry of a charge which is a burden to it, and prevents the revival of industry. We do not want to increase taxation by a penny piece, but we do want to spend more wisely that money which we are receiving. I am certain that can be done, and I am sure that, out of the lessons to-day, we may realise the mistakes we have made in the past in leaving things alone. After a cycle of bad trade has given way to a cycle of good trade, we have left things to take care of themselves, until we were overwhelmed by another cycle of bad trade and unemployment. Surely we must learn from the lessons of the past that a permanent policy is necessary, and that, after we have passed these palliative measures, the first duty of the Government, and the duty of the State, should be to map out, and carry through, a permanent policy which would prevent the recurrence of the evils of unemployment growing in the future to the degree that they have done in the past.
In the past, those who have suffered have largely been the casual labourer, and he in the past has not counted for much in the opinion of the State as a whole, but this time—and this is one good that may come out of the evil upon us—it is not the casual labourer who is out of work, but the artisan, the mechanic, and the clerk—the man who has never known unemployment in the past, and, out of his sufferings, surely a demand will arise that a permanent solution, so far as a permanent solution can be found, shall be sought and provided for the future. Go back to 1909, when you had the Report of the Poor Law Commission, which outlined a national scheme whereby this question of unemployment might be dealt with on broad lines. To-day is not the time to go into that. But surely we are not going to pretend that it passes the wit of man to provide remedial measures on sound permanent lines which will make unemployment and the evils of it things much less to be feared in the future than in the past? The right hon. Gentleman says: "All wrong." Let him produce a better scheme! Surely we are not going to say that it passes all statesmanship to remedy things which have occurred in the past? If so we are proving ourselves bankrupt of statesmanship and bankrupt of any plan for dealing with our industrial problems. I do, however, hope that out of the evils of today good may come, and that the Government and all will direct their attention to those permanent schemes which are not beyond the wit of man to elaborate for dealing on sound lines with this problem.
No one could have listened to the hon. Gentleman who has just sat down without feeling that it is all very pretty; but is there any useful idea in what he has said? Let us examine it. In his very eloquent and very prolonged perorations he informed us that it was the duty of the Government at once to find work; to find some permanent scheme which is for ever to do away with the evils of unemployment. He became quite enthusiastic, almost ecstatic, over this matter; but does that really get things any further forward? I have listened to hours of similar perorations and similar eloquence from hon. Gentlemen sitting on the benches opposite. [HON. MEMBERS: "Oh!"] Yes, and from the Front Benches too. But I must admit that I have never yet heard any sort of solution that could possibly in any conceivable circumstances assist any poor fellow who is suffering from lack of employment at the present time. Never one! We have always got the same demand: "Do not throw the burden upon the worker, do not even throw any burden upon industry, but let the State pay." Let the State be generous and pay all these poor fellows and maintain them. The first duty of the State is to maintain the subjects of the State!
There is a form of argument called petitio principii which consists in making a statement which is totally incorrect and then upon that totally incorrect statement building a long argument which eventually proves the original fallacy on which the thing started out. The fallacy in question is a most appalling fallacy. It is that the State should find work or maintenance for the subject. A little consideration will show that there are circumstances which might arise in this country where, with the best intentions in the world, it would be quite impossible for the State, or for anyone else, to find work or maintenance for the whole of the subjects or inhabitants of the country. Let us therefore dismiss from our minds once and for all that rather bold assertion of the Prime Minister that we cannot allow people to starve. If there is not enough food to go round people will starve, no matter what Prime Ministers or Labour Members may say. Let us get that fact fixed in our mind, and then see whether this particular Bill before the House will result in saving people from starving, or result in producing more starvation and more unemployment in this country.
I unhesitatingly assert that if this Bill is passed its effect will not be very great. Do not imagine that I am arguing that the passing of this Bill will produce any real crisis. Its effect will be small, but the whole of that effect will be to produce more unemployment. I think that is perfectly obvious. [ Laughter .] I hope my hon. Friends opposite will consider that while at times I have made bantering speeches on one or other topic in this matter I desire to be quite serious now, for this is a very serious matter. What we have to consider is this: how are we by any action of ours or by any speech of ours to save so far as possible the misery and starvation that is before the workers of this country at the present day? Do not think for a moment I am putting this lightly, because I am not. But I am afraid that this Bill passed into law will not have the result it is intended to have. It provides that there shall be further benefits given to those who are unemployed and their families. It provides those benefits by means of a levy upon those who are employed, upon the employers, and upon the taxpayers generally. Let us consider the inevitable effect of putting this levy upon those employed, upon the employers, and upon the taxpayer. I think it will be obvious in a few minutes that the inevitable effect will be to produce more unemployment.
For imagine the conditions of affairs when a very great trade depression comes about. In the past when such a trade depression has come there has always been a period at the beginning of the depression when the men have been kept in full employment and it has only been when the trade depression has become very great, and has gone on for some time, that any really serious state of unemployment has arisen. The reason is obvious. In the good years before the depression there has accumulated in the industry and in the hands of those who direct industry a considerable amount of wealth which has not been expended, and, therefore, when the time of depression comes, it is possible for the employer who desires whole-heartedly to keep his men in employment—and many do—for that employer to continue employment even if he is actually making a loss upon the work. Therefore in a time of trade depression it has been possible to carry on, and take the country through that period without any great privations to the wage-earner.
Observe, however, what is happening now. The time of great depression came after a time of very great prosperity— artificial and perhaps unhealthy prosperity—and almost as soon as that time of depression came unemployment became unnaturally acute. The reason lies— and I am not speaking with any ulterior motive, or as a representative of any interest—in the fact that a very large proportion of the wealth produced in the good years, which otherwise normally would have helped us over this period, has been taken by taxation in one form or another and therefore is not available. I know this from personal experience. I think hon. Members will give me credit in this matter, for my own determination is to continue the employment of my own men so far as it is possible to do so, and so long as there is a shot in the locker they shall have their jobs, and if we sink we sink together. And if we swim we swim together—and that is the position taken by quite a large number of employers at the present time—I would not like to say what proportion, but an appreciable proportion—for they feel that the years of peril and sorrow and misery have taught us to understand our fellow countrymen and to determine to hang together in our difficulties and endeavour by patience and sympathy to help one another through the present period. But, after all, the employer cannot do more in a case of that sort than what his resources will allow, and if the State continually drags away the surplus of wealth that is produced year by year and which should form the capital and the seed corn for future harvests, then, with the best wishes in the world he is hampered and prevented from seeking to save his own men from destitution.
Therefore any policy like the present policy, which involves taking more in taxation or levies from those employers and industries still able to carry on to a certain extent, inevitably reduces the time during which such employers and industries continue to exist, and it must inevitably bring about a complete stoppage of industry. The whole of our industries, as we are going on at present, must inevitably stop unless there is a change. We are consuming now, and we have been doing ever since the Armistice, more than we have been producing. We have been maintaining an average standard of living very much higher than 1900. We have been maintaining that standard, and we have not had that surplus of wealth which rendered it safe to maintain that standard. Instead of confining our attention to living upon the harvest we have been producing year by year, for these three years we have been eating, not only the whole of the harvests, but the whole of the seed corn as well.
We find that there is a great deficit of capital, and it is impossible in these circumstances, with that shortage of capital, to maintain a standard of living such as we had in 1914 or the years, before. Sooner or later we shall have to face the hard fact that we must lower our standard of living. Either we have got to work harder for our present standard of living or come down to the lower scale. It is no use hon. Members coming here and saying that the State must provide all this and that. The State has not got a penny piece. The State has not got a purse with a sort of well at the bottom which shoots out money. There is not a penny piece that the State handles that has not come out of the pockets of you and me. It is no use talking about the State being generous. How can the State exercise such virtues as generosity or charity which can only really be exercised by individuals? Really where we have made the fundamental mistake, and this Bill is an example of it, is that we have gone on the tradition of the old school of economics of the last century. That point of view is entirely right for Ministers of the Crown and Government officials who must remember that if they do not act strictly upon the rules of the Manchester school chaos and destitution are the result. Where the old doctrinaire Liberals made their mistake was that they said, "Let the State be generous and let us as individuals go on the hard lines of the Manchester school." This is a complete inversion, for the State ought to keep to sound economics and leave it to the individual to act on lines of generosity and charity.
I say that a Bill of this sort will do very little harm, but it will inevitably do harm, and it cannot in any possible circumstances do good. I ask hon. Members opposite to see if they cannot in their speeches avoid talking about the Government or the State being generous, because that sort of thing brings their conception of economics into contempt. Members of the Labour party get up and in their criticisms they give vent to a few catchwords and nicely sounding phrases, and they think it is quite unnecessary to put before the country suggestions of any value whatsoever to meet the crisis before us. Although I cannot go into the Lobby in favour of this Amendment, because it completely vitiates and misrepresents any possible objection there is to this particular Bill, yet at the same time I cannot support a Government which deliberately shuts its eyes to the real facts and puts forward a miserable Measure of this sort.
The real thing at the bottom of it all is that although this Government may set up committees under the late Minister of Transport and all the great business people of this country, whatever it does, and no matter how many Acts of Parliament it passes, in the nature of things it can never deal effectively with the question of unemployment. There is only one remedy for unemployment, and that is a remedy outside the possibilities and powers of the Government, and it is even beyond the abilities of the Parliamentary Secretary to the Ministry of Transport. The fact is that if John Smith or Tom Jones is out of employment, there is one overriding cause, and that is that the demand for the product of his labour is insufficient to pay the wages he asks. That is the one universal cause of unemployment. There is only one cause, and it is that there is no effective demand for the product of his labour, and people are unable to pay the amount of wages for his product that be demands, or that his trade union or trade board or the Government say he must demand. Therefore the only cure in the long run is a break in the wages rate and nothing else.
I think on this point hon. Members opposite are rapidly coming round to my view. They know that either you have to increase the demand for the product of a man's labour, or reduce his wages, or he will be unemployed. In spite of the wonderful devices of the Government, it is quite impossible to make an effective demand at present prices. If it costs 125s. to produce a ton of pig iron and we cannot get more than £5 a ton for it, the people in that in dustry are going to be out of work. Therefore any Bill such as this, that endeavours to prevent that drop in wages, which is inevitable in the long run, is a Bill which this House ought to reject. It takes away—and what I am going to say hon. Members opposite may think very harsh—the inducement to break the wages rate in that industry If the position requires a lower average rate of wages to reduce the cost of our production to such a level that our foreign friends can buy, we must examine carefully how that state of affairs can be brought about most simply and most surely. It will be brought about in this way only, that the men in any particular industry who are unemployed must be brought to compete against the men in that industry who still maintain their employment at the full rate. That is to say, nobody can really break down the wage rate in any industry except the men in that industry who are unemployed. If you provide those men with assistance or maintenance approaching the amount they would earn or the standard they would have if in full employment in their own industry, you will at once take away the inducement of these men to break the wages rate in that industry, and therefore you will inevitably perpetuate the state of unemployment. The policy of the Government in this Bill of trying to make things easy and pleasant for the unfortunate men out of work is, in the long run, a most coldly cruel and brutal policy. It perpetuates that unhappy state of affairs, and must inevitably result in starvation and privation, not only for one particular industry, but for the whole of the wage earners of this country. It is a dodge, a device for enabling people to keep up prices in the industry, when if they left things to natural forces, they would be prevented by natural economic laws from doing so. I would commend to hon. Members opposite to consider whether, in my own particular instance, I gain anything whatever by saying these things or having these feelings.
It makes no difference to me whether the wage rates are reduced to one-half or one-quarter of what they are, but I do most strongly hold that there will be no end to the state of unemployment in this country until the vast bulk of workers in the country comes down to a standard of living Very much below that in existence in 1914. It would have been better if, after the Armistice, politicians of all parties, instead of talking about homes for heroes, had told their constituents that there was before them the hardest time perhaps that industry has seen for three or four generations, and that nothing could save them and bring them back, even to the 1914 standard of living, but hard work and thrift for some five or ten years. It would have been better if they had said that we had destroyed millions and thousands of millions of capital during those years of war, and that until that capital was replaced it would be absolutely impossible for the standard of living of the workers to be improved and even to be got back to the 1914 standard.
If the arguments of the last speaker be correct there is no possible solution to the problem of unemployment. There is also very little possibility of creating a system under which the maintenance of those who are unemployed will be possible. If that is so this old country of ours, of which we are so proud, had better give up the ghost. If we are to believe the hon. Member, those who seek by unconstitutional means to carry their propaganda into effect for the purpose of establishing some better order, because they say this House cannot do it, are evidently on the right lines. The first deduction I would make from the speech of my hon. Friend who has just spoken is that if State aid in an emergency such as this, and if a tax on industry and wages is going still further to create unemployment, then the heavy Income Tax, the heavy expenditure on armaments, and all the other burdens which the Government has placed on the country must be held responsible for the conditions under which we labour at the moment. I notice that a good many hon. Gentlemen on the other side of the House cheered the hon. Member when he referred to the present tax which is going to be put on as being dangerous to the state of employment. I recollect that when those other burdens were being discussed, especially that relating to armaments, hon. Gentlemen on that side of the House were the first to support that burden.
I do not know whether the hon. Member for West Leeds (Mr. J. Murray) is an employer of labour or not. If he is, I prefer to take the opinion of two employers of labour who have spoken from below the Gangway on this side this afternoon. One of them indicated that in his opinion all the taxes and all the burdens borne by the country came out of the produce of those who do the work of the country. The other one unhesitatingly said that in emergencies of this character the nation should shoulder its responsibility and not east it upon employers, workmen or local authorities. With those two employers of labour I found myself in more hearty sympathy than I did with my hon. Friend the Member for West Leeds. I should be doing the House an injustice if I thought that, as a whole, it followed him in his opinion in relation to the matter of education in this country. We have to get into our minds that there are certain things in which the nation must take an interest. Unemployment is the most important and education comes not far behind. It is a very remarkable thing to me that in the third year after the War we should only have got to this length in dealing with this question of unemployment and in starting to create that new world which was promised.
Some people talk as if this unemployment had come upon us suddenly, and had not been predicted. Many of us know that from the end of the War until now we have been continually pointing out that the country would be faced with a situation such as we are in to-day. Some of us in our trade unions, even when the War was on, warned our fellow members that they ought then to levy themselves against this state of things. Some of them did it, then; others have done it since then, and now, when the whole of their resources are almost gone, the Government somehow or other begins to realise that it has this duty to perform. The Government must have known, not merely 6 months ago, but much longer ago than that, that we were getting into this state. When unemployment was growing upon us 6 months ago the right hon. Gentleman came to this House and told us that the State could not afford to go on paying the heavy insurance, as he called it, and that therefore the amount ought to be reduced to 15s. To-day we find ourselves in this position, that the same right hon. Gentleman comes and increases the amount to be paid by 9s. in some cases. We suggest to the Government that the opinion we expressed 6 months ago, that it would be better to keep up the rate of unemployment pay generally, should have been followed, and that we should then, to some extent, have been saved from the position we are in to-day. It is also a rather strange thing that the head of the present Government should in this instance as on another historic occasion, require something of a remarkable character to reveal the condition in which the country was during the War. I have no hesitation in saying that it took a war to teach the Prime Minister that we had a C3 population, and I have no hesitation in saying also that the Government and the Prime Minister were only convinced that something required to be done when the unemployed demonstrated in their thousands, and when the mayors went to Scotland and told of the things that would have to be done. I asked on one occasion what had become of the preparations that had been made against this crisis, and the right hon. Gentleman the Minister of Labour told me that he had been unable to trace a declaration by Mr. Herbert Samuel dealing with this question of unemployment as he visualised it in 1915. Mr. Herbert Samuel at that time was a Member of the Government—he was Postmaster-General —and speaking at Oxford he gave expression to the following words in July, 1915:
I charge the Government not only with neglecting to attempt the solution in some way of the problem of unemployment, but I charge them also with neglecting it so far that the first thing that becomes paramount is not so much work but that you should not allow any unemployed man or woman—out of work through no fault of their own—to starve or have insufficient sustenance. There was a day when work would have saved us, but the unemployment problem has now become so great that it is up to the nation to see that maintenance is supplied for all out of work. I know my right hon. Friend, like myself, is in the habit occasionally of addressing brotherhood meetings on Sundays, and I would remind him of the parable of the Vineyard, where a man went in in the evening and got sustenance sufficient for the purposes of life on that day.
And it caused a strike.
I think my hon. Friend is wrong. It caused a protest, a quite unreasonable protest, but we are not told there was any strike over the matter. At any rate, the lesson was taught us that a man who was out of work because no one had hired him was entitled to sufficient sustenance for the purposes of life. In a state of employment such as we are in to-day, it is no use coming down to the House with Manchester or any other kind of economics. Ethical principles and hard facts must have precedence. I would say at once to those who say that men must starve before we get into a better position that that is not only uneconomic but wholly unethical as well. I believe that distress can be obviated, and that it is a national responsibility of the Government to see that it is obviated. The hon. Member for West Leeds (Mr. J. Murray) suggested that the best system was one of a contributory character. He did not believe that we should call upon the State, but that employer and employed should contribute. I should like to point out again that, so far as this is a contributory scheme, it only applies to a section of the population. If we are going to have a contributory scheme at all, let everyone in the community contribute towards the upkeep of those who are unemployed. In this case it is a question of contributions from the worker, the employer and the State, while other sections go scot free. Therefore, it is only tinkering with the question to suggest that £3,000,000 from that source is going to do any great good in alleviating distress.
We on this side of the House have reason to protest against the meagre effort made to cope with this problem. We found only recently that £60,000,000 could be got for the railway shareholders, and there was no great talk about that. It may have been a correct payment for aught that I know, but the State could provide it. There was no difficulty, and no talk about the public purse in producing that £60,000,000, and I believe a portion of it is paid over by this time. There is also the £207,000,000 which we are going to spend on war services. Contrast that with the £2,500,000 which the Government is offering for the men who are unemployed, and for the women who have children to look after. The whole thing seems to be but a very meagre attempt to deal with a very urgent question, which is not only lowering the physique of many of our workers, but is demoralising mentally and morally as well. There is one thing for which I welcome the Bill, and that is that to a very slight extent it is a recognition of national responsibility. I must agree, however, with the hon. Member for Greenock (Sir G. Collins), as against the Minister of Labour and the right hon. Gentleman the Member for Gorbals (Mr. G. Barnes). I regard this as merely a transference of the burden from the local authorities to the national Exchequer, the employer and the employed. I know, from facts that have been given to me, that many local authorities throughout the country are burdened severely by the relief that they have to give to those who are out of work. I think that £70,000 was the figure quoted for one district alone. The people who have been relieved there will not get another penny piece more under this Bill; it will simply be a transference of their support, so far as this 9s. goes, from the local authorities to the people who come under this Bill. A large number of workers in London will be in that position. In fact they will be in a worse position, because now the whole of the 15s. will be taken into consideration. I am not saying that that is wrong, but am merely pointing out that they will be in a worse position. Therefore, the needy persons are not going to gain very greatly, if at all, under this Bill. They are not going to receive very much help, and I am rather inclined to agree with an hon. Member opposite that this Bill, although it will not do any harm, is not likely to do much good. That is my objection to it—it is not going as far as it ought to go in relieving distress. This is something which merits the attention of the Government, and which in the interests of the country should be effectively attended to.
I should like to ask why the right hon. Gentleman has departed from the usual definition of a young person who comes under the various Acts of Parliament in relation to finance. Why should the age be put at 14, instead of 16 as it is in other matters? At the present time many children of 14 cannot get work and many are not allowed to work. If they are expected to remain at school till the age of 16, then 16 should be the age up to which they should be helped in the present circumstances. Then I notice that there is a Clause in the Bill dealing with those who are discharged from the Services. Why should not the Services contribute the full amount under this Bill in the case of those who are discharged? I do not know whether there are likely to be many, but the right hon. Gentleman must think that there is going to be a good number when he includes them in this Bill. If they are not going to be kept by the Services, so far as the 5s. to 9s. is concerned, it is another tax on those who are mentioned in the Bill.
I am making provision for the men who have left the Service, and are entitled to benefit, so that they may get these additions.
Every man who leaves the Service, or nearly every man, will be unemployed during the time covered by the Bill.
That man is provided for so far as the Unemployment Insurance Act is concerned, as my hon. Friend must be aware, and I want him to have this additional assistance as well.
So do I, but I think that, if he is to get the addition, it should be a charge upon the Services. I do not think that the amount provided by the Bill is sufficient for that purpose. If he is a man who is not likely to get employment, he may be on benefit for the whole six months, and may draw 5s. or 9s. extra; but the provision made from the Services and from the Government only covers six or seven weeks at the most. Conse- quently, for the remainder of the term he would be drawing on the new fund. However, I hope I am wrong in that. With regard to the agricultural position, I agree with the hon. and gallant Member for Ely (Captain Coote) in his protest against the position in which the agricultural labourer will find himself. After all, those who are outside this Act are in the main those who preferred to be outside because their trade unions were going to make for them provision equal to what was being made under the National Unemployment Insurance Act. That being so, although they were not insured under the State scheme, and were no charge on the community, their trade union was supporting them up to the same or perhaps even a greater extent when they were unemployed. New circumstances, however, have arisen. Some extra benefit has to be paid, and I think these people have a just claim to ask to be included in this scheme. It lies with the right hon. Gentleman to devise ways and means for doing so, but I agree that the protest of the hon. and gallant Member for Ely is a necessary one.
We on this side of the House do recognise that if we are to settle this problem it must be recognised as a State responsibility. It is no use continuing to saddle even a part of it upon the locality. It means that one locality is being subjected to a heavier charge than another, at any rate from the point of view of population, if from no other. That may be the case also from the point of view of industry. It is also, no doubt, a tax on wages, and here I agree with the right hon. Gentleman the Member for Gorbals. Although the workers may dissent from the imposition of this 2d., I believe that when it is on they will pay it whole-heartedly in the interests of their fellow-workers. I have never found any other spirit in the ranks of the trade union movement, and I believe it is general throughout the working classes of this country. So far as it is a tax on industry, I believe that employers themselves will recognise that, however great their difficulties are, it is their duty to help at this trying moment. When all is said and done, I fear that this Bill will be like those which have gone through in the past and become Acts— that it will not contribute much to the solution of the problem, will not help us in getting further away from these evil days of unemployment, and will not even bring about, as is desired by the hon. Member for West Leeds, the co-operation of employed and employers in any particular industry. Before that ideal can be accomplished, of an industry becoming responsible for its own unemployed, the Government must take a hand and map out a method. Until that is done, and until industry does take upon itself the responsibility for its own unemployed, the State looking after the casual worker, we must expect from the Government schemes of this kind; but from our point of view we expect much better schemes, in the interests of those who need them.
Perhaps I may be permitted to reply, as far as I can, to the criticisms which have been made. I should like to thank the House for the generally kindly way in which this endeavour has been met and the solicitude for the condition of the people with whom the Bill deals. The right hon. Gentleman the Member for Platting (Mr. Clynes) thought from my demeanour that I was rather ashamed of, and desired to apologise for, this Bill. He is a very shrewd and an accurate observer, and I must have curiously dissembled my feelings if I gave him that impression. I am not ashamed of it at all. But with the millstone of financial embarrassment that is round our neck to-day, this is the best we can do, in co-operation with the workman, who has got the good luck to be in work, to pay his 2d., and with the employer, and I make no apology for asking the workman and the employer to pay 2d., the State putting up 3d. With the money, we are paying 5s. in the case of a wife and Is. each in the case of children up to four for six months. It is very much more related, I think, to the parable of the Good Samaritan than to the parable of the Vineyard. I have nothing to be ashamed of in this proposal at all. Quite the contrary.
The position of the wife gives some difficulty to my hon. Friend opposite. I said I would state one or two cases of what would happen. Take a husband on benefit, 15s., the wife not drawing benefit. What will come into that house is 15s., 5s. for the wife, and 4s. for four children. Take a husband at work and a wife on benefit. What will come into that house is 12s. and nothing else. Take a husband on benefit with the wife at work, 15s. and 4s. will come into the house. The case which is put to me by the hon. Member for Plymouth (Viscountess Astor) and the right hon. Gentleman the Member for Gorbals (Mr. G. Barnes) is one which has given me some concern. It is where the woman is the breadwinner and she is maintaining her husband who is permanently invalided, and there may be little children. I am only providing here for one breadwinner and that breadwinner is the husband, but I think that is a case which I shall have to make a suggestion about when we come to the Committee stage, because this must be a square deal, and if the woman is the breadwinner and the husband is incapacitated and she has to maintain him and the children, she ought to have on behalf of the husband the 5s. which the husband would have in the other case. I think that is perfectly fair. I am very much impressed by the argument which has been put to me by my hon. Friends.
Will the right hon. Gentleman deal with the other point with regard to a son who has no father and who is the breadwinner of the house? Will he allow the same as he is contemplating with regard to the wife?
10.0 P.M.
That is to say, the case of the mother. I have thought of that, but I am afraid once I begin to go into these variations our difficulties are endless. The cost there would be far more than I can undertake to face. The administration would be extremely difficult, and if you begin to talk about any dependant, I do not know where we shall be. Let us be perfectly honest about this. I am afraid I shall have claims made upon me by some people who are not really, in fact, dependants. I have to make this money go as far as I can and to go directly to the cases where there is real hardship. As regards the speech of the hon. Member for Westhoughton (Mr. Rhys Davies), who addressed us for the first time, I listened to it with great interest. It was a speech of great thoughtfulness and power of delivery. The hon. Member asked, why should not those who are in special schemes—there is only one up to the present, that is, the insurance industry—not pay? They are going to pay. They are in insurance. They are not outside it. I do not propose to allow them to escape their contribution to this scheme at the present moment. The hon. and gallant Member for Chelsea (Sir S. Hoare) put the point that we should try to see that there is no overlapping. Here there is one authority getting 65 per cent, for road work and 50 per cent, of the interest for revenue-producing work, here you talk about the Forestry Commission going to do something in another direction, here you have this insurance, here you have this Unemployed Workers' Dependants Bill, and we have the guardians. Surely, he put to me, we really ought to co-ordinate and set up some sort of authority in each locality to see, in pursuance of what I am trying to do, in pursuance of securing that the money goes to the right quarter, that there is no waste and overlapping. That is a very good suggestion. To a considerable extent the local employment committee meets it, but I do not know that it meets it thoroughly. A proposal to set up a co-ordinating body to have full knowledge of schemes other than work or relief and to see that we do not overlap in a given locality is a good suggestion which I shall carefully consider.
My hon. Friend put the point, How are the guardians to know that people may not be receiving unemployment benefit, or in the future may not be receiving something in addition from this Bill. We have arrangements at present under which the guardians can send to the Employment Exchanges and say, Here we have this applicant. Is he receiving anything from the Unemployment Insurance Fund? And they will in future have to ask whether he or she is receiving anything under this Bill. The hon. Member for Newton (Mr. R. Young) says if all that sort of inquiry is made what is going to happen is that this is a Bill for the relief of rates. No one knows better than he that there is a very large number of self-respecting artisans who never go to the rates and who are struggling on now without going to the rates. He may or may not be right about those who go to the guardians, but at any rate it may be 9s. a week for those who do not. I rather think he left that out of account. The right hon. Member for Gorbals can tell him that the number who try to struggle along and hate to make public parade of their sorrows is very large. My hon. Friend must know that this does a great deal, so far as it goes. The hon. Member for Chelsea asked if I would further elaborate what had been done for women in any way of training. We have trained ex-War women workers, 7,000; War widows, 3,000; ex-War nurses, 300; and we are now engaged in training 3,200 women for domestic and other service in conjunction with the Central Committee on Women Training. They have set aside £100,000 of money they had from the National Relief Fund, and I have an unexpended portion of £50,000 from the original scheme for the training of women. I am dispensing the money in the ratio of £1 from the public fund and £2 from the fund which the Committee administers.
As regards agriculture, I can quite understand the anxiety which has been expressed, but it does not do much to help us to say that the agricultural labourer is not in the Insurance Act, because he did not want to be. He did not want to be down to last April. Hon. Members are anxious about agriculture for the winter. My hon. Friend the Member for the Isle of Ely (Captain Coote) and the hon. Member for Chelsea both referred to the gloomy prospects of agriculture. The hon. Member for the Isle of Ely said: "It is all very well to refer to your relief works, but your references were rather sketchy and vague. I want something more specific." We have set aside £250,000 for forestry operations. That will be worked by a small Committee, in consultation with the Forestry Commission. That is specific enough. Whether it goes far enough I will not say. In addition to that, we have set aside more than twice that amount for land drainage schemes which will be directly under the personal supervision of the Minister of Agriculture. A number of schemes have come in and others are on the way. The great object of all these schemes of relief work is to get men to work as quickly as possible. Therefore I hope that any unnecessary formality, circumlocution, and red tape will be cut right out, because these schemes will be of no value at all unless we get on with them at once. It is our intention to prosecute this question of forestry and land drainage with great celerity, and I hope it will have a considerable effect in covering the causes of anxiety, to which hon. Members have referred, as the winter advances.
The right hon. Baronet the Member for the City of London (Sir F. Banbury) re- ferred to Clause 3 of the Bill, which invites trade unions who operate under Section 17 of the main Act to operate this Act as well, to take the money and to pay it over. I hope they will. Their operations under Section 17 as our agents have been most valuable, and they have relieved us of a good deal of what might otherwise have been bureaucratic administration. The right hon. Baronet completely and utterly misunderstood the position. I never before knew him in such a complete state of mental confusion. He said that I was going out of the few pounds in this scheme to hand over to the trades union just what they liked. There could be nothing further from the fact. I am merely extending Section 17 of the main Act, which enables friendly societies, trade unions and other associations to become our agents. I desire that they shall take on this work under the same conditions as have applied while they have been our agents under the original Act. The right hon. Baronet was amazed to find in Clause 1, Sub-section (4), of the Bill, these words:
That gave him a complete shock.
Hear, hear!
It gave him a complete shock that I should have authority to give a final decision. I will tell him and the House why I want that authority. This is for six months, and I do not want the thing to go dragging on for, perhaps, six years; I want to get on with it. In that I believe I shall carry the bulk of the House with me. The hon. Member for the Bridgeton Division of Glasgow (Mr. MacCallum Scott) asked for particulars of the number of persons who are in benefit and the numbers who have exhausted benefit. Perhaps I had better send him the particulars, because they have been given in answer to questions. I have gone rapidly over the main points of the Second
Reading Debate, and I appeal now to the House to come to a decision.
Before the right hon. Gentleman concludes, I should like to refer to the outworkers. It is a fact that certain outworkers appealed to come within the scope of the Unemployment Act but the Government refused to allow them. Are any arrangements being made to protect these outworkers?
The whole of this Bill is based on the Insurance Act. Those who are in are in. If people are not in, then this Bill will not affect them.
Then I may take it from what the right hon. Gentleman says that the Government, having absolutely refused to allow these people to come within the scope of the Unemployment Insurance Act, are now leaving them to the mercy of a cold world.
The hon. Member can put what construction he likes upon what I said. I have tried in the most simple way and in the most expeditious way to set down something which will do the largest amount of good in the shortest amount of time. The basis I have gone on is this: Here is the Insurance Act, and here are the people in the Insurance Act. I will base this Bill upon that, and I will do it through the agencies which now deal with the Insurance Act, and I will do it in as simple and as expeditious a way as possible. I venture respectfully to ask the House now to take a Division on the Second Reading, so that we may take the Committee stage of the Financial Resolution. No doubt a discussion will arise on that. I have mentioned a point which I think will have to be dealt with before we leave the Money Resolution. Meantime I trust that we may now take the Division on the Second Reading.
Question put, "That the words proposed to be left out stand part of the Question."
The House divided: Ayes, 226; Noes, 70.
Division No. 356.] AYES. [10.15 p.m. Adkins, Sir William Ryland Dent Bagley, Captain E. Ashton Barnston, Major Harry Agg-Gardner, Sir James Tynte Baird, Sir John Lawrence Barrie, Sir Charles Coupar (Banff) Allen, Lieut.-Col. Sir William James Baldwin, Rt. Hon. Stanley Beauchamp, Sir Edward Armitage, Robert Balfour, George (Hampstead) Beckett, Hon. Gervase Armstrong, Henry Bruce Banbury, Rt. Hon. Sir Frederick G. Bellairs, Commander Carlyon W. Astor, Viscountess Barnes, Rt. Hon. G. (Glas., Gorbals) Betterton, Henry B. Atkey. A. R. Barnett, Major Richard W Bird, Sir A. (Wolverhampton, West) Blades, Sir George Rowland Gregory, Holman Nield, Sir Herbert Blair, Sir Reginald Greig, Colonel James William Norman, Major Rt. Hon. Sir Henry Blane, T. A. Gretton, Colonel John Ormsby-Gore, Hon. William Berwick, Major G. O. Gritten, W. G. Howard Parker, James Bowyer, Captain G. W. E. Guest, Capt. Rt. Hon. Frederick E. Parkinson, Albert L. (Blackpool) Boyd-Carpenter, Major A. Hamilton, Major C. G. C. Pease, Rt. Hon Herbert Pike Breese, Major Charles E. Hannon, Patrick Joseph Henry Pennefather, De Fonblanque Bridgeman, Rt. Hon. William Clive Harmsworth, C. B. (Bedford, Luton) Percy, Lord Eustace (Hastings) Briggs, Harold Henderson, Lt.-Col. V. L. (Tradeston) Perkins, Walter Frank Brittain, Sir Harry Hennessy, Major J. R. G. Philipps, Sir Owen C. (Chester, City) Broad, Thomas Tucker Hewart, Rt. Hon. Sir Gordon Pollock, Sir Ernest Murray Bruton, Sir James Hinds, John Polson, Sir Thomas A. Buchanan, Lieut.-Colonel A. L. H. Hoare, Lieut.-Colonel Sir S. J. G. Pewnall, Lieut.-Colonel Assheton Buckley, Lieut.-Colonel A. Hohler, Gerald Fitzroy Prescott, Major W. H. Bull, Rt. Hon. Sir William James Holbrook, Sir Arthur Richard Rees, Sir J. D. (Nottingham, East) Burdon, Colonel Rowland Hood, Joseph Reid, D. D. Burn, Col. C. R. (Devon, Torquay) Hope, Lt.-Col. Sir J. A. (Midlothian) Renwick, Sir George Casey, T. W. Hopkins, John W. W. Richardson, Alexander (Gravesend) Cautley, Henry Strother Horne, Sir R. S. (Glasgow, Hillhead) Roberts, Rt. Hon. G. H. (Norwich) Chadwick, Sir Robert Burton Hunter, General Sir A. (Lancaster) Roberts, Sir S. (Sheffield, Ecclesall) Chamberlain, Rt. Hn. J. A. (Birm., W). Hunter-Weston, Lieut-Gen. Sir A. G. Robinson, Sir T. (Lancs., Stretford) Cheyne, Sir William Watson Hurd, Percy A. Samuel, A. M. (Surrey, Farnham) Chichester, Col. Robert Hurst, Lieut.-Colonel Gerald B. Samuel, Samuel (W'dsworth, Putney) Child, Brigadier-General Sir Hill Inskip, Thomas Walker H. Sanders, Colonel Sir Robert Arthur Churchman, Sir Arthur James, Lieut.-Colonel Hon. Cuthbert Sassoon, Sir Philip Albert Gustave D. Clough, Sir Robert Jephcott, A. R. Scott, A. M. (Glasgow, Bridgeton) Coats, Sir Stuart Jesson, C. Seddon, J A. Cory, Sir J. H. (Cardiff, South) Jodrell, Neville Paul Shaw, Hon. Alex. (Kilmarnock) Cowan, D. M. (Scottish Universities) Johnson, Sir Stanley Shaw, William T. (Forfar) Craig, Capt. C. C. (Antrim, South) Jones, Henry Haydn (Merioneth) Smith, Sir Allan M. (Croydon, South) Craik, Rt. Hon. Sir Henry Jones. J. T. (Carmarthen, Llanelly) Smithers, Sir Alfred W. Curzon, Captain Viscount Joynson-Hicks, Sir William Sprot, Colonel Sir Alexander Davidson, Major-General Sir J. H. King, Captain Henry Douglas Stanley, Major Hon. G. (Preston) Davies, Alfred Thomas (Lincoln) Kinloch-Cooke, Sir Clement Stephenson, Lieut.-Colonel H. K. Davies, Sir Joseph (Chester, Crewe) Lane-Fox, G. R. Stewart, Gershom Dawson, Sir Philip Law, Alfred J. (Rochdale) Strauss. Edward Anthony Dennis, J. W. (Birmingham, Deritend) Lewis, Rt. Hon. J. H. (Univ., Wales) Sturrock, J. Leng Denniss, Edmund R. B. (Oldham) Lewis, T. A. (Glam., Pontypridd) Sueter, Rear-Admiral Murray Fraser Doyle, N. Grattan Lloyd, George Butler Surtees, Brigadier-General H. C. Edgar, Clifford B. Lloyd-Greame, Sir P. Sutherland, Sir William Edwards, Major J. (Aberavon) Locker-Lampson, G. (Wood Green) Taylor, J. Edwards, Hugh (Glam., Neath) Locker-Lampson, Com. O. (H'tingd'n) Thomas-Stanford, Charles Erskine, James Malcolm Monteith Lorden, John William Thomson, F. C. (Aberdeen, South) Eyres-Monsell, Com. Bolton M. Lowther, Maj.-Gen. Sir C. (Penrith) Thorpe, Captain John Henry Evans, Ernest Lyle, C. E. Leonard Townshend, Sir Charles Vere Ferrers Fell, Sir Arthur M'Connell, Thomas Edward Tryon, Major George Clement Fisher, Rt. Hon. Herbert A. L. McLaren, Robert (Lanark, Northern) Ward, Col. J. (Stoke upon Trent) Flannery, Sir James Fortescue McMicking, Major Gilbert Ward, William Dudley (Southampton) Ford, Patrick Johnston Macnamara, Rt. Hon, Dr. T. J. Waring, Major Walter Foreman, Sir Henry Macquisten, F. A. Warren, Sir Alfred H. Forestier-Walker, L. Mallalieu, Frederick William Watson, Captain John Bertrand Foxcroft, Captain Charles Talbot Malone, Major P. B. (Tottenham, S.) Williams, Aneurin (Durham Consett) Fraser, Major Sir Keith Marriott, John Arthur Ransome Williams, C. (Tavistock) Fremantle, Lieut.-Colonel Francis E. Mitchell, Sir William Lane Williams, Col. P. (Middlesbrough, E.) Ganzoni, Sir John Moles, Thomas Wills, Lt.-Col. Sir Gilbert Alan H. Gardiner, James Mond, Rt. Hon. Sir Alfred Moritz Wilson, Rt. Hon. J. W. (Stourbrdge) Gee, Captain Robert Montagu, Rt. Hon. E. S. Wilson-Fox, Henry George, Rt. Hon. David Lloyd Moore, Major-General Sir Newton Wise, Frederick Gibbs, Colonel George Abraham Moreing, Captain Algernon H. Wood, Sir H. K. (Woolwich, West) Gilbert, James Daniel Morison, Rt. Hon. Thomas Brash Worsfold. T. Cato Gilmour, Lieut.-Colonel Sir John Morris, Richard Yate, Colonel Sir Charles Edward Glyn, Major Ralph Morrison, Hugh Yeo, Sir Alfred William Gould, James C. Murchison, C. K. Young, E. H. (Norwich) Grant, James Augustus Murray, Hon. Gideon (St. Rollox) Young, Sir Frederick W. (Swindon) Gray, Major Ernest (Accrington) Murray, John (Leeds, West) Younger, Sir George Green, Albert (Derby) Murray, William (Dumfries) Green, Joseph F. (Leicester, W.) Neal, Arthur TELLERS FOR THE AYES .—.— Greene, Lt.-Col. Sir W. (Hack'y, N.) Newman, Colonel J. R. P. (Finchley) Colonel Leslie Wilson and Mr. McCurdy. Greenwood, William (Stockport) Newman, Sir R. H. S. D. L. (Exeter) Greer, Harry Nicholson, Brig.-Gen. J. (Westminster)
NOES. Adamson, Rt. Hon. William Collins, Sir Godfrey (Greenock) Graham, R. (Nelson and Colne) Barker, G. (Monmouth, Abertillery) Davies, A. (Lancaster, Clitheroe) Graham, W. (Edinburgh, Central) Barnes, Major H. (Newcastle, E.) Davies, Evan (Ebbw Vale) Griffiths, T. (Monmouth, Pontypool) Bentinck, Lord Henry Cavendish- Davies, John (Lancs, Westhoughton) Grundy, T. W. Bowerman, Rt. Hon. Charles W. Devlin, Joseph Guest, J. (York, W. R., Hemsworth) Briant, Frank Edwards, C. (Monmouth, Bedwellty) Hall, F. (York, W.R., Normanton) Bromfield, William Elliot, Capt. Walter E. (Lanark) Hartshorn, Vernon Brown, James (Ayr and Bute) Entwistle, Major C. F. Hayward, Evan Cairns, John Finney, Samuel Hirst, G. H. Cape, Thomas Galbraith, Samuel Hodge, Rt. Hon. John Carter, W. (Nottingham, Mansfield) Gillis, William Hopkinson, A. (Lancaster, Mossley) Clynes, Rt. Hon. John R. Glanville, Harold James Irving, Dan Jones, Morgan (Caerphilly) Robertson, John Walsh, Stephen (Lancaster, Ince) Kennedy, Thomas Royce, William Stapleton Waterson, A. E. Kenworthy, Lieut.-Commander J. M. Sexton, James Wedgwood, Colonel Josiah C. Kenyon, Barnet Short, Alfred (Wednesbury) White, Charles F. (Derby, Western) Lawson, John James Sitch, Charles H. Wignall, James Lunn, William Spencer, George A. Wilson, James (Dudley) Maclean, Rt. Hon. Sir D. (Midlothian) Spoor, B. G. Wood, Major M. M. (Aberdeen, C.) Morgan, Major D. Watts Swan, J. E. Young, Robert (Lancaster, Newton) Myers, Thomas Thomas, Brig.-Gen. Sir O. (Anglesey) O'Grady, James Thomson, T. (Middlesbrough, West) TELLERS FOR THE NOES .—.— Parkinson, John Allen (Wigan) Thorne, G. R. (Wolverhampton, E.) Mr. Arthur Henderson and Mr. T. Shaw. Raffan, Peter Wilson Tillett, Benjamin Richardson, R. (Houghton-le-Spring) Tootill, Robert
Bill read a Second time; and committed to a Committee of the Whole House for To-morrow.—[ Dr. Macnamara .]
Unemployed Workers' Dependants (Temporary Provision) [Money]
Considered in Committee.
[Sir E. CORNWALL in the Chair.]
Motion made, and Question proposed,
That, for the purpose of any Act of the present Session to make temporary provision for the payment of grants to unemployed workers towards the maintenance of their wives and dependent children, it is expedient to authorise the payment out of moneys provided by Parliament of—
I beg to move, to leave out the words "wives and dependent children" ["towards the maintenance of their wives and dependent children"] and to insert instead thereof the word "dependants."
I am afraid that Amendment would not be in Order, as it would extend the Resolution and the Title of the Bill. The Resolu- tion is very definite. It is for the purpose of providing a grant for unemployed workers towards the maintenance of their wives and dependent children. To take out the words "wives and dependent children" and insert "dependants" would be a very wide extension of the Financial Resolution, and I could not accept an Amendment in that form.
I beg to move, to leave out the words "and dependent children."
I quite appreciate that the Amendment suggested by the hon. Member for Ince (Mr. Walsh) would be out of Order, but to enable certain points to be raised, and to secure, if possible, some satisfaction from the Minister of Labour on those points, I would suggest an Amendment in this form. It would not widen the scope of the Resolution, and, although I would not think of dividing the House upon it, we shall be enabled to discuss one or two aspects of this thorny question. I would like to mention the case of the woman with a dependent husband. That was referred to by the Member for Plymouth (Viscountess Astor) and others, and the Minister made a very sympathetic reply. That is one of the points I had intended to raise now, but I trust the right hon. Gentleman will implement the undertaking he gave on the Second Reading. Hon. Members will observe in the Bill that a man may live with a woman without being married to her, but if she lives with him as his wife he receives on her behalf, on unemployment, 5s. a week, but in the case of a widower who has not married again and who employs a female relative or a decent woman as housekeeper and to look after his children, and they live in morality and decency, he can claim nothing for her. I am not going to attack that principle, because it is a principle in the case of separation allowances. It was accepted by the last House, and I do not propose to cavil at it now; but I think that if in the case of a man living in sin with a woman you are going to allow 5s., you have an overwhelming case for allowing it in the case of a relative who acts as housekeeper, caretaker, and foster-mother to an unemployed workman's young children.
On a point of Order. Will you kindly explain to the Committee, Mr. Deputy-Chairman, as a matter of information, the point of Order of the hon. and gallant Member for Hull (Lieut.-Commander Kenworthy)?
The hon. and gallant Member has got beyond the point of Order. He certainly rose to put a point of Order to me, and the point he put was to ask whether an Amendment to leave out the words, "and dependent children" would be in Order. He seemed to take it for granted, when I did not rise, that it was in Order, and he is quite correct, and I did not think it necessary to intervene. That is the Amendment now before the Committee, which I understand he is moving.
I thought I was assisting my hon. Friend the member for Ince (Mr. Walsh), as I believe he and I see eye to eye in this matter, and I hope he will be able to support my point of view. The further point I wish to put is much more relevant to the Amendment, and that is the question of the child of over 14 years of age who is incapacitated by mental or physical infirmity. Take the case of a family where there is an invalid or disabled young person. There is maintained by the parents, at great sacrifice very often, as hon. Members know, a child with mental affliction, who is often the favourite child of the mother, the apple of her eye—a most extraordinary thing, and perhaps a beneficial thing, too. In that case, I think there is a good ground for consideration. The age of 14 in the case of the child which is incapacitated is too low, and the dependent children as defined in the main Act is too narrow. I think it is a pity the Financial Resolution has been drawn so narrowly, and I propose this Amendment in order to give the Minister of Labour an opportunity of explaining to the House whether he intends to consider these one or two cases I have brought forward.
I beg to second the Amendment.
I cannot imagine, of course, that my hon. and gallant Friend wishes to pursue this.
I want an assurance from the right hon. Gentleman.
I gather that my hon. and gallant Friend's purpose was to move some sort of Amendment in order to give me an opportunity of saying how I propose to carry out the undertaking I have given. I have stated that whereas here we make provision, in the case of a man drawing benefit for his wife and certain dependent children, no provision is made for the case where the woman is the breadwinner, and is maintaining, we will say, a permanently invalided husband. I said I did think that, as we were prepared to make provision for the one breadwinner, when that breadwinner was the husband, we ought to make similar provision where the wife was the breadwinner. I had proposed, therefore, after the word "wives" in the Resolution, to add the words "or their husbands, if wholly dependent on them." That is according to the undertaking I gave, but I understand it is not necessary here— I should be glad to be advised in the matter—and that I can move it as an Amendment to the Bill, and alter the Title of the Bill accordingly.
I think it would be better than taking it at this stage.
I venture to submit a point in the hope that the Committee may be able to do what I am certain the Committee desires to do, and what, I am also assured, the Minister of Labour desires to do. The Money Resolution, as it is now worded, declares that these grants are to be to unemployed workers. A wife, as a wife, cannot get a grant unless she is an unemployed worker. A child, as a child, cannot get a grant except through an unemployed worker. I want to know whether it is regarded as essential that the Money Resolution should state what the money is for. The Money Resolution states that this is a grant to unemployed workers and towards the maintenance of their wives and dependent children. It has been revealed in debate that these words are too narrow, and the Minister of Labour announces that he is prepared to accept a variation of these words. What, therefore, I ask is: would it not be permissible to move the deletion of the words, "towards the maintenance of their wives and dependent children"? If it be not permitted at this stage to move the deletion of these words, it will mean that it will be quite impossible for the Minister of Labour or anyone else to move Amendments which the Chair can accept and to broaden the scope of the grants when we have to deal with this matter in detail.
The Committee has been set up
"to consider of authorising the payment, out of moneys provided by Parliament, of any contributions and expenses incurred under any Act of the present Session to make temporary provision for the payment of grants to unemployed workers towards the maintenance of their wives and dependent children…."
That is a definite Resolution setting up this Committee, and this Committee cannot go beyond it. The House must set up another Committee to extend it. It is quite outside the powers of this Committee to go to any stage beyond the Resolution setting it up.
I am sorry the Minister of Labour did not deal with the points raised by my hon. and gallant Friend the Member for Central Hull (Lieut.-Commander Kenworthy). They are very important. They have a very far-reaching effect upon the life of this country. My hon. and gallant Friend pointed out that, as the Bill stands and as this Resolution stands, it will be possible to give a grant, not only to a man's wife, but to a man in respect of a woman living with him as his wife—in other words, in respect of a concubine. But if another man living next door has a housekeeper living with him and looking after his house and his children, it will not be possible, as the Resolution stands and as the Bill stands, to give a grant in respect of that respectable housekeeper. Surely it is not intended to bring about that state of things? I quite agree that it is impossible to inquire in each individual case whether a man and woman are legally married. It could not be done. On the other hand, if you are going as far as to say that you are not going to inquire whether a man and woman are legally married you must meet the case of the man really who has the housekeeper to whom he does not make any profession of being married, but who is a respectable woman. Otherwise you have the monstrous position that when a man claims in respect of his housekeeper he is open to the question: "Are you living with this woman as your wife? If she is not your wife, and if you are living with her as if she were, you are entitled to the 5s. per week; if you are not living with her as your wife you are not entitled to that payment." Surely the Government do not intend to bring about that state of things? My hon. and gallant Friend raised the question in order to give the Minister of Labour an opportunity of dealing with it and to point out that the Resolution as it stands ties the hands of the Government. The Government can put a wider Resolution before the House—no private Member can. Surely the Government intends to do so?
What about the case of the widow, who is an insured person, working in an insured trade, but is now unemployed and entitled to benefit under the Insurance Act? Does she stand in the same position as the bread winner? She has to pay a contribution and she is unemployed. Does she become entitled to the payment of the benefit for the children?
In the case put to me of the widow who is in benefit with dependant children, she would get her 12s. per week and 1s. for each child. The case where a wife maintains permanently an invalided husband is a case for the extra 5s., but the case of the widow is not the same, although she would get the 12s. and 1s. for each child up to a maximum of 9s. I shall propose in the Bill an Amendment which will give the 5s. on behalf of the husband to the woman who is maintaining a husband permanently invalided. I think all that will be necessary will be to amend the Title of the Bill to conform to the Amendment.
That is not a point of Order for me to decide now, and I had better not give any decision of that kind. Whenever that arises, whoever is in the Chair will consider it at that time. I should think that what the right hon. Gentleman suggests would be quite in order and would meet the position, but I would not like to commit myself until I have had time to consider it. It is difficult to see how far these financial proposals go, and I cannot say whether it is on the border line or over it.
Would it not be possible for the right hon. Gentleman to meet the wishes of the hon. and gallant Gentleman the Member for Central Hull by inserting after the word "wives" the words "or housekeeper"?
We are now face to face with a new position, because the Title and scope of the Bill has been changed. May I draw attention to a precedent? In the 1906 Parliament a Member of our party brought forward a Bill dealing with trade disputes and Mr. Speaker ruled it out of order on the ground that we had changed the Title later on.
I think it is better to go a step at a time. I have the Financial Resolution before me now, and when the Bill is in Committee and is being considered, then the questions which arise come clearly before the Committee. I think the House will be able to do in Committee what it desires to do, and I do not think any new situation has arisen.
Do I understand that your ruling, Sir, is to this effect, that we are disqualified from seeking any alterations in the words of the Money Resolution which would be inconsistent, in your judgment, with any previous decision which has been reached, and that therefore we must trust to the Committee stages and to the course suggested by the Minister of Labour for such Amendments in the Clauses of the Bill as the House may desire to introduce?
The right hon. Gentleman has put it quite correctly. At the present moment we are only concerned with the Financial Resolution, and we are governed by the Resolution setting up the Committee for this purpose. Beyond that I cannot go.
It is not yet our usual time for parting; there are some nine minutes left, and I must take the opportunity of again press- ing my right hon. Friend the Minister of Labour on this point of a woman acting as housekeeper for a widower with young children. I know that the right hon. Gentleman would be the last to be guilty of any discourtesy, but I must point out that three hon. Gentlemen—
On a point of Order. The Amendment before the Committee that has already been moved is to leave out the words "dependent children." I would ask your ruling whether, on that Motion, it is in order for a hon. and gallant Member to seek to insert the word "housekeeper"?
I pointed out to the hon. and gallant Member for Central Hull that I thought the Amendment was somewhat illogical. I allowed him to make his speech on the Amendment, but I did not follow his arguments, or their relevancy generally. Listening to his second attempt to speak on his Amendment, I agree with the hon. Gentleman who put the point of Order to me, that I do not see the relevancy of that, and I think, in the circumstances, the hon. and gallant Member, having taken the opportunity of saying what he had to say, had better ask leave to withdraw his Amendment.
I desire to withdraw the Amendment, but on a point of Order—
rose —
Will the hon. Member for Govan (Mr. N. Maclean) please resume his seat?
On a point of Order. It was with no disrespect to the Chair that I remained standing. You did not call on any Member to speak.
The hon. and gallant Member for Central Hull caught my eye. I would ask him, under the circumstances, to withdraw his Amendment.
On a point of Order. Before I withdraw my Amendment, might I ask whether it will be in Order to invite the Minister of Labour to make a declaration on this point on the whole question?
I think the hon. and gallant Member knows the forms of the House.
Amendment, by leave, withdrawn.
I beg to move, in paragraph (1), to leave out the words:
"sum which would be produced by weekly contributions paid in respect of insured persons at the rate of threepence in the case of men, and twopence in the case of women, boys, and girls;"
and to insert instead thereof the words:
"trade union rates of wages paid in the district in which the unemployed person resides."
I should like to move this Amendment if it is in order. I understand you have ruled certain Amendments out of order previously.
I think that would be in order.
If my Amendment be carried the paragraph will read—
"A contribution towards grants to be paid to unemployed workers during a period of six months not exceeding the amount determined by the Treasury to be approximately equivalent to the trade union rates of wages paid in the district in which the unemployed person resides."
You have already ruled that we cannot by any Amendment of this Resolution make it wider than the Resolution passed by the House setting up this Committee. The proposal of the hon. Member now is to extend the amount provided by Parliament to a sum equal to the trade union rate of wages paid in the district in which the unemployed person resides. That, obviously, is an enormous extension of the decision of the House yesterday, and I submit that the Amendment is necessarily out of order.
I have looked at it very carefully. It does not seem to me it is out of order, because the Resolution setting up the Committee deals with the payment of grants, and this Amendment deals with the grant.
11.0 P.M.
I am desirous of having these words placed in the Resolution because I cannot see for the life of me how the suggested amounts mentioned in the various speeches will in any way relieve distress following on a period of unemployment. It is quite impossible for the rates suggested by the Minister of Labour and those who spoke on his behalf to be other than trivial so far as concerns the necessaries of life which they will be able to purchase. If it is the desire of the Government to meet this unemployed question in an adequate manner they must provide sufficient money to enable those who are unemployed to purchase the necessaries of life. If you are going to feed them with small sums of money, it goes without saying that the landlord, when he calls for his rent, is going to take the major portion, and there will be very little left with which to buy the barest necessaries of life. If we expect a revival of trade, then those engaged in the districts in which the revival takes place—both women and men—must be physically competent and able to undertake the work which lies to their hand, and we cannot have physically fit men and women on the rates you propose to give according to the statements which have been made The trade unions have established what to them seems to be a standard of living which, while not all that we would like it to be, at any rate guarantees to those who have it some decency in life and the ability to purchase the necessaries that they require. Consequently, I do not see how any sum less than that standard rate of wages will meet the difficulties from which the unemployed are suffering at this juncture. It is for that reason and with that object that I desire to have these words inserted. I have stated already, in the general Debate which followed the Prime Minister's speech, that I could not see how this matter was going to be affected to the extent of one iota. I should like any Member on the Government Bench to go down into constituencies where there is a great volume of unemployment. I should like the Minister of Labour to go down to his own constituency and defend the Government proposals there before a meeting of unemployed, and I should like to be present at that meeting. I am afraid that if the Minister of Labour, or even the Prime Minister—who at other junctures has affected a great liking for the East End—were to go down to any East End constituency, he would not come away feeling that he is so popular as some of the papers lead him to believe he is.
Govern yourself!
I am able to speak for my constituency more than the hon. Member is for his. I would suggest to the Minister of Labour that the sums of money to be paid under his proposal are only going to incite the people to whom they are paid. The sums are inadequate. My Amendment meets the situation so far as it can be met under present conditions. I agree with some hon. Members who think that there if no solution for the unemployment problem so long as this system prevails. So long as the Government Bench try to administer this system there can be no solution of unemployment. The best we can do is to endeavour to soften the rigours of unemployment, to alleviate as far as we possibly can the distress, and, by so doing, to try to keep those who are unemployed in such a situation and condition as to enable them to undertake the work when work comes along for them to do. You do not place the Army or the Navy, when they are not employed in fighting—which is the main function of an Army or a Navy—on the unemployment dole. You pay them the ordinary money that they are paid during war; you feed them and clothe them and house them. I want to know why the unemployed, the workers who are maintaining this country, to whom you look for all the wealth that is produced, to whom you look to supply you with munitions in time of war, and to furnish the raw material for your Army—to whom, in short, you look for everything that goes to make up not only your necessaries but your luxuries as well—
Yours as well!
I get on with very few luxuries. If hon. Members opposite did with as few luxuries as I do, there would be no necessity for an Anti-Waste Campaign. These interruptions only show the amount of interest which many hon. Members take in the unemployment problem. If the hon. Member were as short of food as he is of hair, he would be more concerned with the Amendment I am moving, and he would give it more attention than he is giving it, and if he were more concerned with his constituents, many of whom I know, in the constituency that he misrepresents, and with their unemployed condition he would not make those light-hearted interruptions that he has made not only on this but on other occasions. He comes to the House— [HON. MEMBERS: "Keep to the point!"] I will leave that point. I hope that the majority of Members, at least, will treat this matter more seriously than some Members do, and will recognise the right of the unemployed workman to have as good conditions, as good food, as good comfort in his home, and as little necessity for selling up those little things which make up his household gods as he has to do in periods of employment. In that light I submit the Amendment, and I hope that the Committee will accept it in the spirit in which I have moved it.
I shall treat the Amendment quite seriously, as befits the subject, but I should have been more helped if the hon. Member had told us something about the precise effect of it, because he has left us entirely in the dark. What is it we are proposing in this Resolution? The employer pays 2d. a week, the employed person 2d., and the State adds 3d. in the case of a man. In the case of a woman, boy, or girl the employer pays 1d., the employed person 1d., and the State 2d., and this provides for the State's contribution of 3d. in one case and 2d. in the other. See what the hon. Member proposes. Instead of 3d. in the case of a man and 2d. in the case of the other individuals from the Treasury, this has to be paid: A contribution towards grants to be paid to the unemployed workers during the period of six months on the existing amount determined by the Treasury to be approximately equal to the trade union rate. First of all, the Treasury is to determine what are approximately the trade union rates. I am sure I cannot see hon. Members opposite leaving that to the Treasury. I can imagine endless discussion, even if it were a feasible proposition, which it is not. Imagine the discussion, the controversy, the conflict which would arise if it were left to the Treasury to say what is the approximate trade union rate.
The trade union rate of wages is already determined between the trade unions and the employers in various agreements which have been arrived at. What the Treasury will have to do is to find out what has been agreed upon as the district rate of wages between the trade unions and the employers and fix a grant necessary to meet that.
If this were a feasible proposition no doubt we should have to invest it with common sense and proceed along those lines. That is not what it says.
If this Amendment be carried, would it mean that the labourers, who contribute as much as the mechanics to this particular fund, would receive the trade union wages paid to labourers, while the mechanic would get the higher rate paid to mechanics?
It is very difficult to interpret the effect of this proposal, but what I imagine would happen would be this. The Treasury would in respect of each man find out what was the trade union rate for the craft to which he belonged and would pay into the fund on behalf of that man that amount of money. The complication would be perfectly hopeless. I should have thought, with great respect, that it really means such an entirely different charge upon the Exchequer as to have been scarcely competent to have been moved at this juncture.
If the right hon. Gentleman puts that point to me he must remember that the Resolution setting up the Committee does not limit the amount, and it ought to have been limited if it was desired by the Government to limit it. The Resolution set up this Committee without any limitation in regard to the amount of the grants. It states it is
"to make temporary provision for the payment of grants to unemployed workers …"
There is nothing in the Resolution as to the amount of grant. Therefore, it was impossible for me to rule this Amendment out of Order. The Committee may wonder why I was, apparently, so strong in respect to a previous Amendment, but in that case the Resolution setting up the Committee was very definite. That Resolution states definitely that it is
"for the maintenance of their wives and dependent children."
Therefore, that Resolution governed me in my previous decision. I had to be definite because the Resolution setting up the Committee was definite; but in regard to these grants the Resolution setting up the Committee is vague. Therefore it was impossible for me to do anything but allow the Resolution to be moved.
Amendment negatived.
Main Question again proposed.
With respect to paragraph 3 of the Resolution is it the intention to grant administrative expenses in connection with the Act in addition to the grant of 3d.?
It is not the intention to make an addition ad hoc to the State contribution.
Main Question put, and agreed to.
Resolution to be reported To-morrow.
The remaining Orders were read, and postponed .
Whereupon Mr. SPEAKER, pursuant to the Order of the House of 18th October, proposed the Question, "That this House do now adjourn."
Question put, and agreed to.
Adjourned accordingly at Nineteen Minutes after Eleven o'Clock.