Skip to main content

Commons Chamber

Volume 164: debated on Wednesday 30 May 1923

House of Commons

Wednesday, May 30, 1923

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

Private Business

Bootle Corporation Bill [ Lords ],

Caledonian Railway Bill,

General Reversionary and Investment Company Bill [ Lords ],

As amended, considered; to be read the Third time.

Supreme Court (Prize, Etc., Deposit Account, 1921-22)

Account ordered "of the Receipts and Payments of the Assistant Paymaster-General for Supreme Court business on behalf of the Admiralty Division in Prize for the year ended the 31st day of March, 1922, and for the period 4th day of August, 1914, to 31st day of March, 1922, together with Copy of the Correspondence with the Comptroller and Auditor-General thereon." — [ Sir W. Joynson-Hicks. ]

Oral Answers to Questions

Turkey

Bank of Athens, Constantinople

asked the Under-Secretary of State for Foreign Affairs whether he has any information that the Constantinople branch of the Bank of Athens was lately seized by the Turkish authorities, the doors closed, and the coffers sealed; and, if so, what action was taken by the Acting British High Commissioner to protect the Allied interests involved?

The Turkish authorities closed the three branches in Constantinople of the Bank of Athens and sealed the strong rooms. The Acting High Commissioner at once made a protest to the Constantinople representative of the Government of the Grand National Assembly, and subsequently co-operated with his French and Italian colleagues in presenting a joint Note of protest to that representative. A reply has now been received expressing willingness to re-open the branches under Turkish control.

Shipping Documents (Language)

asked the Under-Secretary of State for Foreign Affairs whether he is aware that the Turkish authorities have issued a decree making compulsory the use of the Turkish language on shipping documents, such as bills of lading, captain's receipts, etc., at Turkish ports; and, in view of the serious effect of such a decree upon shipping interests in this country, what steps he proposes to take in the matter?

The answer to the first part of the question is in the affirmative. The Allied High Commissioners addressed a joint note to the representative of the Government of the Grand National Assembly asking that the use of a second language on certain shipping documents be permitted, and received in reply a verbal assurance that this might be done.

Russia

Trade Agreement

asked the Under-Secretary of State for Foreign Affairs whether the Foreign Office has received any communications from the Board of Trade, the Department of Overseas Trade, or other public Department, or from any Chambers of Commerce or commercial firms, with regard to the consequences to British trade likely to be caused by any rupture of the Trade Agreement with Russia; and, if so, whether he will lay them upon the Table, or otherwise communicate them, or the purport thereof, to the House?

It is not usual to lay before Parliament correspondence passing between Government Departments on subjects of policy, but I may say that no such communication has been received I which indicates that a rupture of the Trade Agreement with Russia would in any degree injure British trade. A communication from the Association of British Chambers of Commerce is to the effect that the opinions of Chambers of Commerce throughout the country were recently sought by that Association on this question, from which it appears that the policy embodied in the Government's Note to the Soviet Government of Russia has been approved and endorsed by the Chambers of Commerce of Huddersfield, Hull, Leeds, Newcastle-on-Tyne, Wolver-hampton, Edinburgh, Glasgow, Sheffield, Leicester, Grimsby, Birmingham, and the Russian Section of the London Chamber. The majority of these bodies expressed the view that the Trade Agreement is of no value to British trade, and the same opinion has been expressed by the Association of British Creditors of Russia, and by the Russo-British Chamber of Commerce.

If the lapse of the trade agreement with Russia will cause no disadvantage to the trade of this country, what was the object of making it?

Do I understand from that answer that the Government has determined to break the trade agreement, and is the hon. Gentleman not aware that that might be interpreted as a hostile act which might lead to very serious consequences?

The hon. and gallant Gentleman is drawing an inference from my answer which is quite unwarranted. I merely replied to the question on the Paper.

Is it not a fact that the Trade Union Congress and a large number of trade councils and trade unions have sent in their opinion in regard to this trade agreement, and is their opinion not as valuable as that of the Chambers of Commerce?

The comparative value is a matter of opinion, but that is not the question which the hon. Member put upon the Paper.

Have the Government received any replies from Chambers of Com- merce expressing their regret at the possibility of the breaking of this agreement?

asked the Prime Minister whether he has received any representations from British commercial firms against the threatened termination of the Russian trade agreement; and whether the Board of Trade or the Department of Overseas Trade were consulted before the despatch of the Note of 8th May?

I would -refer the hon. Member to the answer I have given today to the hon. Member for Seaham. The answer to the second part of the question is in the affirmative.

Conversations With M. Krassin

asked the Under-Secretary of State for Foreign Affairs whether he can make any statement on the course of the negotiations between the Secretary of State and the representatives of the Russian Government in England; and whether His Majesty's Government have requested the Russian Government to recall its Ministers in Persia and/or Afghanistan?

asked the Under-Secretary of State for Foreign Affairs whether, during the conversations lately held between the Secretary of State for Foreign Affairs and M. Krassin the question of compensation to British nationals who had suffered as the result of the Soviet revolution was mentioned; if so, what reply was made by M. Krassin, or what suggestions were offered by him; and, if the question was not raised, will an opportunity be taken of doing so, in view of the anxiety felt by the commercial community of the country?

I am still unable to add anything to the reply I gave to the hon. and gallant Member and to the hon. and gallant Member for Leith (Captain Wedgwood Benn) on 28th May.

Can the Under-Secretary give a denial to or an affirmation of the last part of my question?

The hon. and gallant Gentleman will find that question answered in the White Paper containing the recent Note to the Soviet Government.

Are we to understand that, in spite of the last conciliatory Note, we are not yet within sight of a settlement with Russia?

That would involve a statement in regard to the negotiations which are now taking place in reference to which I have already stated I am not yet in a position to make such a statement.

British Property (Confiscation)

asked the Under-Secretary of State for Foreign Affairs what are the amounts, respectively, of claims registered with the Foreign Claims Department of the Foreign Office; and the number of claimants in respect of properties of British subjects confiscated by Soviet legislation and of Russian State and municipal bonds, respectively?

I have been asked to reply. As regards the amounts claimed. I would refer to the reply which I gave on 5th March last to one of the hon. Members for Dundee. The total number of claimants who have registered claims in the Russian Claims Department may be put at 35,000, of whom probably three-quarters have claims in respect of bonds. It will be appreciated, however, that many claimants have a number of claims in different categories.

asked the Under-Secretary of State for Foreign Affairs whether, considering the adverse consequences to British interests flowing from the judgment in the Sagor appeal case and from the grounds upon which that judgment was based, His Majesty's Government will consider the expediency of so restricting the recognition of the Russian de facto Government as to preclude their recurrence?

It is not proposed to take any steps of the nature indicated by the hon. and gallant Member.

asked the Under-Secretary of State for Foreign Affairs whether, in any negotiations for the continuance of the Anglo-Russian trading agreement, His Majesty's Government will insist upon the insertion of a clause providing for the restitution to British subjects of property or bonds confiscated by Soviet legislation, or for the payment of effective compensation in the event of non-return within a given period?

This matter is one of those the satisfactory adjustment of which will be, as has frequently been stated in the House, an essential preliminary to a full and final settlement with the Soviet Government. The Anglo-Russian trade agreement is merely a provisional instrument of limited scope, and I do not consider that any useful purpose would be served by the introduction of this matter into the present negotiations.

Is it not a fact that the Russian Soviet Government has expressed its willingness to discuss and come to a settlement of these claims once the British Government is willing to negotiate recognition of the Soviet Government?

Why do you not get on with that, so that these gentlemen may receive their money?

British Trawlers (Release)

asked the Undersecretary of State for Foreign Affaire whether he is aware that the "James Johnson" and "Lord Astor" trawlers have not yet been permitted to leave Murmansk; and what further steps he proposes to take to secure their early release?

Can the Under-Secretary assure us that the length of time these vessels have been detained will be taken into consideration in assessing the claims against the Soviet Government and that the matter will be expedited? Will he see that these claims are paid as soon as possible?

I think the hon. and gallant Gentleman may rely upon it that those factors of the case are being taken, into consideration.

Is it a fact that the "St. Hubert," one of the other vessels, has not yet been released, and will he bear that fact in mind?

That is quite true, but we have an assurance that it will be released very shortly. It is only detained in consequence of certain formalities.

Soviet Agents Arrested

asked the Under-Secretary of State for Foreign Affairs what information he has about the Kolometzev family and MM. Babushkin and Karakhanian, referred to in the 11th paragraph of the Russian reply on 12th May to the British Note of 8th May; whether these persons were imprisoned in India; if so, for what periods, respectively, and on what charge; whether they were brought to trial; whether they were treated as political prisoners; and when and why they were released?

As regards M. Babushkin, I would refer the hon. and gallant Member to the Note appended to the Correspondence with the Russian Soviet Government published in White Paper Russia No. 1 of 1922, Cd. 1602. M. Karakhanian and the family of M. Kolometzev were arrested during the War in Teheran in similar circumstances about the same time, and interned in Mesopotamia until repatriated under the Anglo-Russian Agreement for the exchange of prisoners. To give the particular details of these cases selected by the hon. and gallant Member would be misleading without at the same time setting out their full history, which would not be possible within the limits of a reply to a question.

Soviet Government (Recognition)

asked the Prime Minister if he is prepared to endorse, on behalf of the present Government, the statement made by the late Prime Minister on the 27th November last with regard to the recognition of the Soviet Government of Russia by the Government of this country, namely, that no recognition will be accorded to the Soviet Government of Russia until full compensation has been paid to our nationals and every just claim honourably met?

I presume that my hon. and gallant Friend refers to an answer given by the late Prime Minister to the hon. and gallant Member for Newcastle-under-Lyme (Colonel Wedgwood) on the 29th November last. I fully endorse, on behalf of the present Government, the statement then made.

Will the right hon. Gentleman say if the statement attributed to the late Prime Minister in this question is in accord with the fact, namely, that there will not be full recognition of the Soviet Government until full compensation has been paid?

I am not aware of that. I was simply alluding to the question asked on the 29th November by the hon. and gallant Member whom I mentioned.

British Policy

asked the Prime Minister if he is aware that considerable anxiety exists among large sections of opinion in this country in respect to the possibility of a rupture of relations with Russia, both as regards the loss of trade which would result and the political consequences which might ensue; and, in view of the conciliatory nature of the Russian Government's replies, will he take an early opportunity of signifying his agreement to the proposal that a conference be held between the two Governments in order that the differences between them may be examined in a broad and friendly spirit?

His Majesty's Government can claim to be well informed as to the views held by all shades of public opinion as regards Russian policy. As regards the second part of the question, I would refer the hon. Member to the reply I gave to the hon. and gallant Member for Central Hull on 28th May.

North Sea Fisheries (Threemile Limit)

asked the Undersecretary of State for Foreign Affairs what States are represented upon the international body dealing with fishing rights and practices in the North Sea; what recommendations that body has made in regard to restricting fishing areas for trawlers beyond the three-mile limit; what States do not accept the three-mile limit for fishing purposes; what is the area beyond the three-mile limit for which it is sought to exclude foreign trawlers from the Moray Firth; what is the area beyond the three-mile limit from which the United States exclude British vessels from seal-hunting in the Behring Sea; and will he state within what distance of the Ceylon coast foreign pearl-fishing vessels are now permitted to operate?

So far as I am aware, no international body such as that mentioned by the hon. Member exists. The second part of the question therefore does not arise. A belt wider than three miles has been claimed for fishery purposes at various times by Spain, Norway, Sweden, Denmark, Russia and Uruguay and in the French zone of Morocco. None of these claims are admitted by His Majesty's Government or have received general recognition. Trawlers belonging to nations signatory to the North Sea Fisheries Convention, 1882, are not excluded from any waters beyond the three-mile limit, as laid down in that Convention. The protection of fur-seals in the North Pacific Ocean is now governed by the Convention between the United Kingdom, the United States of America, Japan and Russia, signed at Washington on 7th July, 1911, under the terms of 'which the vessels of the signatory Powers are prohibited from engaging in pelagic sealing in that ocean north of the 30th parallel of north latitude and including the seas of Behring, Kanchatka, Okhotsk -and Japan, except within the territorial jurisdiction of one of the other Powers. It was not until Great Britain agreed to this Convention that British vessels could be excluded from seal hunting in the Behring Sea outside the territorial jurisdiction. As regards the last part of the question, pearl fisheries stand on a different footing to the ordinary kind of fishing in the waters of the sea, because the banks where the pearl oysters lie must be treated as part of the bed of the sea. For many centuries the pearl banks off the coast of Ceylon have been claimed as subject to the sovereignty of the rulers of the neighbouring territory and sub- ject therefore also to their control. Some of these banks are more than three miles from the shore, but where they are situated under the high seas the claim to sovereignty and control is limited in extent to the area of the banks, and does not affect the rights of navigation or of ordinary fishing in the waters over the banks.

Peace Treaties

German Reparation

13 and 14.

asked the Under-Secretary of State for Foreign Affairs (1) whether His Majesty's Government has decided upon the sum Germany ought to pay in reparations, and the modality of such payments; whether the French, Belgian, and other Allied Governments have been informed of the views of His Majesty's Government in this regard;

(2) whether negotiations are taking place between His Majesty's Government and the French Government with a view to ascertaining what is the total amount that the French Government is prepared to accept from Germany in reparations; and whether, if the views of His Majesty's Government do not coincide with those of the French Government on this question, His Majesty's Government will consider the elaboration of a reparations plan in conjunction with the other Allied Governments?

As the hon. and gallant Member is aware, His Majesty's Government submitted to the principal Allied Governments in January last a full and detailed plan for the settlement of the reparations question. That plan the Allied Governments, for reasons which they stated at the time, declared themselves unable to accept, and His Majesty's Government have no information to lead them to suppose that they can usefully take any further step at present.

In view of the recent financial collapse of Germany, does not the right hon. Gentleman think the situation is so changed that a further submission ought to be made?

Royal Navy

Welfare Requests

asked the First Lord of the Admiralty when the decisions on the requests advanced by the Inter-Port Welfare Conference, held at Chatham in May, 1922, may be expected?

It is hoped to promulgate the Admiralty decisions at an early date.

Pay (Reductions)

asked the First Lord of the Admiralty if he is aware that before the Jerram Committee on naval pay made their report representative officers and men were heard in evidence; and if the same procedure will be observed before any reductions are made?

I would refer my hon. and gallant Friend to the reply given by the late Financial Secretary to the Treasury on the 16th May, to which I have nothing to add.

Is the right hon. Gentleman aware that Admiral Jerram derived great benefit from the fact that the men of the lower deck were allowed to give evidence before his Committee, and will he consider the advisability of following the same course in this case?

The Anderson Committee is investigating this question, and it must be left to the Committee themselves to determine what evidence they want to take.

Motor Drivers (Pay)

asked the Parliamentary Secretary to the Admiralty if representations have been made to him regarding the inadequacy of the increase in wages recently granted to motor drivers in the royal dockyards; and if, seeing that the duties are similar to those performed by motor drivers outside the dockyards, he will see that the trade union rate is paid for that class of work?

The answer to the first part of the question is in the affirmative. The men employed as motor drivers are paid rates of wages which are equitably related to the wages of other classes of workpeople in the same establishments, and the suggestion that they should be paid the wages prevailing in the transport industry, which have no relation to shipyard wages, cannot be adopted.

Unemployment

Benefits

asked the-Minister of Labour the reasons for which Mr. James Martin, of 134, Acciderry Place, Southwick Road, Dalbeattie, has been refused benefit under the Unemployment Insurance Acts; and whether he is aware that evidence has been produced by the chief magistrate of the borough, and other well-known residents, that Mr. Martin is continuously seeking whole-time employment?

I am informed that after this applicant had received 62 days' benefit the local committee, on the 10th January last, did not recommend further benefit, as they were not satisfied that he was making every effort to obtain employment. The committee adhered to this recommendation when the claim was reviewed in April. There is no confirmation that evidence on his behalf from the chief magistrate, or other members of public bodies, was ever submitted either to the committee or to the local Exchange. I have examined the case and can see no ground for not accepting the recommendations of the committee. I am informed that Mr. Martin is now in employment.

Is the right hon. Gentleman not aware of the widespread feeling throughout the country at the way in which men are being victimised in this direction? Has not the time come to remodel the machinery?

asked the Minister of Labour what are the modifications in the Regulations governing the issue of uncovenanted insurance benefit which he has been able to make as a result of his reconsideration of the Regulations existing at the time of the passing of the last amending Unemployment Insurance Act?

As I stated in the Debate on the Ministry of Labour Estimates on 26th April, two modifications have been made in the rules for the payment of uncovenanted benefit, namely, in respect of single persons over the age of 25 years and in respect of aliens (other than former enemy aliens) who had been resident in this country since the 1st January, 1911. These modifications are now in force, and I am sending the hon. Member a copy of the memorandum in which they were communicated to local employment committees.

Has the hon. Gentleman considered the possibility of additional modifications?

I can only refer the hon. Member to what I said in my speech on the Estimate, in which I indicated, broadly speaking, that I thought the Regulations and Directions were well conceived. Apart from those two modifications, I do not propose to make further alteration at present.

Did not the right hon. Gentleman agree to consider the case of the single woman? What has he done in that direction?

I have already indicated that as far as the question of age is concerned I have modified the rule for both sexes.

Boys' Centres

asked the Minister of Labour whether Mr. J. M. Bryce's Report on the Centres for Unemployed Boys has yet been received; and whether he can hold out any hope that these centres will continue to receive the Government grant?

This Report has not yet been received, but I hope it will be available shortly. On the question of the continuance of the Government grant, I am not at present in a position to add anything to the statement I made in the Debate on the Adjournment.

In view of the doubt which exists as to the intentions of the Government, will the right hon. Gentleman try to expedite the issue of the Report?

I cannot give any undertaking as to the date when the Report will be presented. I wish to deal with the matter at the earliest possible opportunity.

Elementary School Cleaners

asked the Minister of Labour if he is aware that, in accordance with a decision of the High Court in January, 1922, employment as cleaners of elementary schools was not insurable employment under the Unemployment Insurance Acts; that the Dorset County Council made application, as soon as possible after the decision of the Court, for a refund of all contributions paid in respect of school cleaners; and that the said application was rejected by the Ministry of Labour on the ground that it was not made within the time limit specified under Section 28 of the Act of 1920: and whether, in view of the fact that the said time limit had already expired at the time that the High Court decision was given, or left the county council with inadequate time for the completion of the claim within the prescribed limit, he will now make arrangements for the refund of the contributions paid by the Dorset County Council in respect of school cleaners prior to the decision of the High Court?

I am looking into this case, and will communicate with the hon. Member as soon as possible.

Necessitous Areas

asked the Minister of Health whether he has yet considered the revised formula submitted to him on behalf of the representatives of necessitous areas, as a possible basis for making a special grant from the Treasury to meet the abnormal charges thrown upon them by exceptional unemployment in their districts, and, if so, with what result; and, if not, how soon will he be in a position to consider the same?

I would refer the hon. Member to the reply given to the hon. Member for Rotherham last Monday.

Is the right hon. Gentleman aware of the considerable anxiety among local authorities regarding the delay in this matter? Cannot he indicate when he will be able to issue the revised formulæ?

I have considered the revised formulae myself, but am not yet in a position to make a statement on it. I hope there will be no long delay.

Will the right hon. Gentleman represent to the Prime Minister that we want the same expenditure in this matter as was shown in the case of agriculture?

Relief Work

asked the Minister of Health whether he is now in a position to state the facts in connection with the prosecution by the Lewisham Board of Guardians of two labourers who were prosecuted by that board for neglecting to maintain their wives and children, such prosecution being based on the refusal of these men to accept ordinary relief work at less than trade union rates, both these men being capable competent workmen; and whether he is now able to say what advice or orders he proposes to issue to boards of guardians and other local authorities concerning the employment of efficient workmen on relief works?

I have received a report on the prosecution in question, and I understand that a case is being stated by the magistrate for hearing in a higher Court. I do not think that any action is necessary on the lines suggested in the last part of the question.

Is the right hon. Gentleman aware that a very large number of boards of guardians are adopting this policy, and would he inform the boards of guardians that his Department does not approve of relief work being dealt with in this fashion?

I am not quite sure what the policy is to which the hon. Member refers, but I am inclined to think that he is mixing up two different things, namely, the application of test work and the employment of people upon relief work. They are not necessarily the same.

Is the right hon. Gentleman aware that the question raised is that relief work partly paid for out of national funds is degraded to the level of ordinary stone-yard test work by boards of guardians, and that that is what we want him to tell boards of guardians they should not do?

It is just what I thought. I think the hon. Member is mistaken. So far as I am aware, work of that kind, assisted out of national funds, is not used as test work.

asked the Minister of Health whether he is aware that the Edmonton Board of Guardians are demanding that able-bodied men shall do two days' work in return for whatever amount of relief may be paid them during the week, and that this relief occasionally works out at only 9s.; that the work is of such a character as would, under normal conditions, be paid for at trade union rates, and that men refusing to do the work in return for this small amount of relief are threatened with prosecution; that, in addition, the Employment Exchange authorities have informed the men that they are unable to demand a stamp to be placed on their insurance cards during the period they are at work; and whether he will take steps to inform boards of guardians that the schemes of work financially assisted out of national funds are not to be used as test work, but that men employed on such schemes, where they are efficient, must be paid the trade union rate of wages?

The answer to the first three parts of the question is in the affirmative, though the work referred to is work which would not ordinarily be done at the present time. I am not prepared to act on the suggestion in the last part of the question.

Glasgow Corporation (Contracts)

asked the Minister of Labour whether he is aware that the Glasgow Corporation has recently accepted an American tender for the supply of steel furniture and fittings amounting to nearly £9,000, although the tender of Roneo, Limited, of Romford was very close, and although they afterwards offered to carry out the work at the same price as quoted by the American firm; and will he advise local authorities throughout the country that, owing to the vast amount of unemployment, they should endeavour to keep the work in this country?

I have been asked to reply. The circumstances of the particular transaction mentioned by the hon. and gallant Member have not been brought to my notice. My Noble Friend is issuing a circular urging local authorities, in the absence of special circumstances, to place their contracts in this country in view of present conditions.

Will the hon. Gentleman circularise the other Government Departments on this subject?

Electoral Registers

asked the Minister of Health if, in the interests of economy, he will consider the desirability of arranging for one annual registration of electors in place of the six-monthly registration which is required at present; and if he will arrange for county councils to be allowed to resume the power of making contracts for the printing of these registers?

I have been asked to reply. The subject first referred to was recently considered by the Government, but serious difficulties arise in connection with the proposal and the saving involved was not felt to be sufficient to justify its adoption. As to the latter part of the question, the Representation of the People Act, 1918, provides that one-half of the printing expenses shall be defrayed from the Exchequer, and in the circumstances it is considered desirable to maintain the existing arrangements in regard to printing contracts.

Is it not the fact that local authorities have frequently made contracts locally for the printing of the registers?

I think that the Stationery Office arranges the contracts, but I am not sure that it is not open to anyone to apply for them. I will make further inquiry.

Small-Pox

asked the Minister of Health what proportion of the small-pox cases notified in the years 1921, 1922, and the first three months of 1923, had been vaccinated; and how many deaths had occurred in the same periods due to, or aggravated by, vaccination?

The proportion of cases of small-pox in persons who had been vaccinated at some time in their lives was 31·3 per cent, in 1921, 28·6 per cent, in 1922, and 19·5 per cent, in the first three months of 1923. The figures for the last two periods are subject to revision, but they tend to show that the bulk of the cases occurred in persons who had been vaccinated from 40 to 60 years previously. The numbers of deaths attributed to vaccination, off to some complication following vaccination, in the three periods were 8, 7 and 5, respectively.

Can the right hon. Gentleman give the figures of the number of deaths from small-pox in the period mentioned?

I cannot do it without notice. Perhaps the hon. Member will put down a question.

asked the Minister of Health the number of people who have died this year up to the 30th April with small-pox; and, if any, what percentage of these were vaccinated and what percentage were unvaccinated?

Tuberculous Milk

asked the Minister of Health whether he is aware that the corporation of Newcastle-upon-Tyne, in their weekly examinations for tuberculosis in samples of milk sold for consumption in that city, found that of the highest proportion of positive samples was 10·4 per cent, in 1912, and that during the period of cattle shortage and general control by the Government of slaughtering it fell steadily to 3·6 per cent, in 1919, but that since that year it has risen again, and by 1922 stood at the relatively high figure of 7 per cent.; and whether, in view of the fact that tuberculous milk is one of the prime sources of the disease of tuberculosis in the population, he will take or propose measures for more efficiently dealing with herds in rural areas by transferring the duties in connection therewith from the small local authorities to combinations of these or to county councils?

I understand that the facts are as stated. The duty of taking measures to prevent the sale of tuberculous milk was placed on county and county borough councils by the Milk and Dairies (Consolidation) Act, 1915, but the commencement of that Act has been postponed till the 1st September, 1925, by the Milk and Dairies (Amendment) Act, 1922. I may, however, remind the hon. Member that Section 11 of the Act of 1922 provides for the transfer to the county council of the powers and duties of a district council under that Act or any other enactments, Orders or Regulations relating to milk and dairies, if the county council resolve that the district council have failed to exercise or perform any of those powers or duties and make complaints thereof to my Department.

National Health Insurance

Agricultural Workers

asked the Minister of Health whether there are available data illustrating the average annual value of benefits received per worker among agricultural workers under the National Health Insurance scheme; and how this compares with the corresponding figure for workers in urban industries?

As agricultural workers are distributed amongst many thousand approved societies and branches which are not, in general organised on an occupational basis, it is impossible to give figures as to the annual value of benefits received by such workers throughout the country. An analysis of the figures of certain societies, whose membership consists largely of agricultural workers, shows a claims experience from 5 to 10 per cent, more favourable than that of societies generally, with the result that such societies have been placed in a position to provide their members with exceptionally favourable additional benefits.

Since, owing to the depressed state of agriculture, the earning power of the agriculturist is below that of other industries, will the right hon. Gentleman consider the question of reducing the contributions of the agriculturist, so that the contributions paid should be more in conforminty with the benefits received?

Will the right hon. Gentleman consider the advisability of devising ways and means of increasing the wages, instead of reducing the contributions?

Approved Societies (Administrative Expenses)

32 and 34.

asked the Minister of Health (1) whether he has obtained the opinion of any representatives of the small approved societies on the proposed reduction of administrative expenses of such societies;

(2) whether he has received any representations against the proposed reduction of the administrative expenses of approved societies on the ground that small societies will not be able to efficiently conduct the work of National Insurance if the reduction is made; and whether he will arrange for an opportunity for Parliamentary discussion before such reduction is made?

Representations, to the effect referred to by the hon. Member have been received from some small approved societies, and I have also received expressions of opinion to the contrary effect, which are supported by the figures available as to the actual expenditure of such societies. With regard to the latter part of the second question, I would refer the hon. Member to the replies which I gave to him on the 9th and 16th May.

Is the right hon. Gentleman aware of the grave anxiety on the part of some of these small societies that, if this allowance is reduced, they will not be able efficiently to administer the National Insurance Act, and will he give further consideration to this aspect of the matter?

Panel Service

asked the Minister of Health whether any conferences have recently taken place between representatives of the doctors on the panel list and his own Department; whether any alteration in the terms of the panel service have been discussed; and whether it is proposed to revise the remuneration now being paid in respect of such service?

asked the Minister of Health what is the present payment made to doctors under the Health Insurance Acts; whether any negotiations are proceeding with the doctors for the purpose of reducing the amount now paid annually per patient; if he will state what the pro posed reduction amounts to; and if he can make any statement on the subject?

A conference has been held with the Insurance Acts Committee of the British Medical Association to consider certain modifications in the terms of service of insurance practitioners, but no discussion has yet taken place in regard to the rate of remuneration after the expiry of the present agreement, which fixes the rate at 9s. 6d., exclusive of payments in respect of drugs and mileage to rural practitioners.

When this conference has taken place, will the right hon. Gentleman be taking steps to see that, so far as it is possible to do so, the panel service is improved, having regard to the very many objections and complaints that are coming from all parts of the country at the present time?

asked the Minister of Health whether, under the Health Insurance Acts, there are any Regulations as to the number of patients who may be on the panel of any doctor; what is the maximum number of patients allowed to one doctor; whether there are any conditions as to the doctor having competent assistants in the case of a large number; and if any other conditions are made to the doctor as regards the proper treatment of those patients who are on his panel?

In reply to the first three parts of the question, I would refer the hon. Member to the reply on the 14th March to the hon. Member for Rochdale (Mr. Burgess). As regards the last part, the obligations of the practitioner are set out in the terms of service, of which I am sending the hon. Member a copy.

Would the right hon. Gentleman make it a condition with the doctors on the panel that similar treatment shall be meted out to the panel patients as is meted out to private patients, and that the queues that have to wait outside the surgery shall in some way be accommodated with shelter?

I think that will be one of the terms of service which have been under consideration.

Dispensing Fees

asked the Minister of Health what remuneration is paid to chemists under the National Health Insurance Acts for the dispensing of panel doctors' prescriptions; whether it is proposed to reduce the amounts now paid; whether any conference has taken place recently on the matter; whether he can make any statement on the subject; and can he state how long the present agreement runs for?

The scale of fees paid to chemists for dispensing insurance prescriptions is set out in the Drug Tariff, a copy of which I am sending to the hon. Member. This scale was fixed under an agreement which expires at the end of April next, and negotiations for its revision have not yet begun. I am, therefore, not in a position to make any statement at present as to the revision of the scale.

Housing Subsidy

asked the Minister of Health the number of cases in which the Ministry of Health requires local authorities claiming the housing subsidy under the Act of 1919 to furnish the Ministry with a copy of the minutes of the monthly or other meeting of the authorities claiming the subsidy; and will he give the aggregate number of copies of such minutes received during the period 1st December, 1922, to 1st June, 1923, inclusive?

No such requirement as is suggested by the hon. Member has been made in relation to the Housing Acts, but in 1919 some 300 local authorities were asked to furnish copies of their minutes of proceedings for the general information of my Department. The figure asked for in the last part of the question is 1,166.

What is done with these 1,166 copies of minutes that have been delivered?

Would it not be more efficacious if the Ministry of Health left off asking for this wasteful form of expenditure, and contented itself with carrying out the terms of the Act of 1919, and paying the subsidy on an annual audit of accounts?

Fever Epidemic, West Lothian

asked the Minister of Health if any inquiry is being held into the cause of the fever epidemic at Broxburn, West Lothian; whether the number of cases reported is abnormal; and whether the local authority has complained to the Edinburgh Corporation regarding the presence of a refuse dump in the district alleged to be the cause of the trouble?

I have been asked to reply to this question. The Scottish Board of Health have obtained a report from the county medical officer regarding the outbreak of scarlet fever and other infectious diseases at Broxburn, and are making further inquiries in the matter. The number of cases is large. The outbreak of scarlet fever has been definitely associated with a milk supply which was sold over a wide area. For some time past measles has been prevalent in the district, but I am informed that the number of cases is rapidly decreasing. I understand that the local authority complained to Edinburgh Corporation regarding the presence of a refuse dump in the district, but the medical officer is of opinion that this is not the cause of the scarlet fever.

Foreign Policy

asked the Prime Minister if he is aware of the deep feeling existing in the country against being dragged into another war; and will he consider the desirability of calling together representatives of the whole of the churches, the chambers of commerce, the co-operative movement, and the Trades Union Congress so as to secure united action in favour of peace with all nations?

The answer to the first part of the question is in the affirmative, which feeling, I may say, is equally shared by His Majesty's Government. As regards the last part of the question, I am not prepared to take the action suggested by the hon. Member.

Are we to understand that the Russian policy commenced by the right hon. Gentleman's predecessor, or rather, by his Government, is to be continued by his Government which he has just formed?

Does it not mean that if this be persisted in, we run grave risk of being dragged into another war?

Scottish Ministers

asked the Prime Minister whether, seeing that the offices of Secretary for Scotland and Lord Advocate are not held by Members of this House, he will state what steps he intends to take to meet the desires and needs of Scotland in this respect?

I have no reason to believe that Scottish interests are not adequately represented on the Treasury Bench.

Is the right hon. Gentleman aware that there is widespread discontent in Scotland as to the treatment of Scottish affairs?

Is it the policy of the Government to continue permanently a gentleman who is not responsible to Members of this House because he has not been able to secure election to this Assembly, and would it not be desirable to select some person who could be here to answer legal questions in connection with Scottish affairs?

Will the right hon. Gentleman favourably consider reversing the roles of the Under-Secretary for Health, and the Secretary for Scotland?

Will the right hon. Gentleman consider that the majority of the Scottish Members are discontented with the present state of affairs, and will he do something to satisfy them in this respect?

There was a time when English Members of this House were very discontented.

Tuberculosis (Governmentgrants)

asked the Minister of Health if he will state the total amount of Government grants in the preceding completed financial year towards the cure of consumption, and the total amount expended by the local authorities of the United Kingdom during the same period?

The total amount paid from the Exchequer during the year ended the 31st March last in respect of the tuberculosis schemes in England and Wales, including capital grants in aid of sanatoria, was £1,985,042. The gross expenditure of local authorities in England and of the Welsh National Memorial Association during that year is estimated to amount to £2,945,155, exclusive of capital expenditure for which particulars are not yet available. With regard to Scotland, a question should be addressed to the Under-Secretary for Health for Scotland.

Arising out of the answer, which indicates a very large public expenditure which is preventible, and of the answer I received to my pre- vious question, that all the councils are unable efficiently to deal with tuberculous milk coming into their area until 25th September, will the right hon. Gentleman take measures to shorten the period in which local authorities like Newcastle may deal with their tuberculous milk?

Public Works Contracts (Cement Prices)

asked the Minister of Health whether, in view of his Circular to local authorities, issued during the Recess, requiring them to place in this country all contracts in connection with public works for which they receive Government grants, he had regard to the effect such a condition would have upon those local authorities who, in order to break the British cement ring, have been making their purchases abroad at much lower prices than the combine demand; and will he either waive this condition where trusts and combines operate or make an extra grant to local authorities who have to pay higher prices in order to comply with the conditions of his Circular?

The condition will certainly be waived in any case in which it is shown that prices are being maintained at an unfair level.

Do we understand from that that in the case of cement local authorities buying from abroad at many shillings a ton cheaper than the combine price will be allowed to continue to purchase it abroad notwithstanding this circular?

If prices in this country are being maintained at an unfair level the waiving of this condition would be one of the weapons I should certainly use to bring prices down.

Are we to understand that if the price of foreign cement is lower than the price of English under the trust a local authority will still be able to continue its purchases of the cheaper cement abroad?

Will the right hon. Gentleman take into consideration the very impure and non-comparable quality of foreign cement with English?

Temporary Workmen's Wages,Cumberland Green

asked the First Com missioner of Works if he is aware that certain of the extra temporary workmen who were employed on Cumberland Green at a wekely wage of £2 13s. 3d. were discharged and re-engaged at a weekly wage of £l 19s. 3d.; and will he say whether these men are employed under the Ministry of Health's unemployment scheme?

Two men who were employed before the 31st March on this job re-engaged themselves at the 75 per cent, rate, in the circumstances explained in my reply to the hon. Member for Carlisle on Monday.

Is it not a fact that a number of the men who were originally engaged at the higher rate of wage have been taken on at the lower rate, which is far below the trade union rate, and is not the scheme being utilised for bringing down the trade union rate of wages?

No, the number of men who have been taken is two, and they specially asked to be taken on at this rate. The whole subject was explained at great length in the answer which I gave on Monday.

Teachers' Dispute, Ossett

asked the President of the Board of Education if he will take steps to intervene in the dispute between the town council and the school teachers of Ossett, with a view to bringing the dispute to an end?

I have been inquiring into this matter, and am doing my best to promote a settlement of the dispute.

Scotland

Land Dispute, Skye

asked the Solicitor-General for Scotland whether he is aware that, under a warrant alleged to have been granted on Saturday, 12th instant, by the Judge of the First Division of the Court of Session, authorising the arrest and imprisonment of a number of landless ex-service men on the estate of Strathaird, in Skye, because of their failure to appear personally at the bar of the said Court, the said warrant has been put into execution and six ex-service men are now serving a sentence of two months' imprisonment; whether he is aware that no such warrant was signed or issued by any member of the said Court on the date which it bears; and whether he will have the circumstances inquired into?

Why cannot I have the question answered by the Minister to whom it is addressed?

On a point of Order. This is a question that affects the law of Scotland, and the Under-Secretary is not a lawyer.

It is quite customary, where there are two officers representing one Department, to arrange for one to answer a question.

This is a legal question, and for that reason it is addressed to this particular Minister.

If it be postponed, is there any guarantee that the Minister in question will be here to answer it?

Ministers have many other duties to perform. It is impossible for them all to be here at all times.

Will the hon. Member ask the question, or put it down for some subsequent day?

The question is one regarding the action of the Lord Advocate, who is not here, for reasons we all know. But he has a second string, who should be here to-day.

Is not this an administrative matter resting within the discretion of the Secretary for Scotland, who will be advised by his legal advisers?

I may say, in passing, that the Solicitor-General for Scotland is at present in Scotland discharging his official duties there. I am informed that no warrant for imprisonment was issued on or dated the 12th instant, but that on that day the respondents were due to attend in the Court of Session under an Order dated March last. They failed to appear, and accordingly a warrant for arrest was granted by the Court. On the 26th of May, the respondents being present in Court, sentence was pronounced and signed of two months' imprisonment for confessed and wilful breach of interdict. I thus see no ground for inquiry.

Is the hon. and gallant Gentleman aware of the intense indignation in Scotland at this brutal and scandalous sentence upon five men who have come back from the War wounded, to whom a pledge given by the Government has been deliberately broken?

Is the hon. and gallant Gentleman aware that these ex-service men at present in gaol applied for land under the terms of the offer made to ex-service men as far back as 1919, and they have never had any promise of land either in Skye or any other part of the islands of Scotland?

In view of the fact that there is considerable indignation in Scotland in connection with this matter, will the hon. Gentleman issue a statement pointing out whether these men are ex-service men, and for what reason the Board of Agriculture has not provided them with small holdings?

This question, obviously, contravenes the assertion of the hon. Member who asked the original question, that this is only a legal matter. That involves a question that I propose to deal with later.

Considering that these men have served their country, cannot a free pardon be granted to them, irrespective of the merits of the case?

asked the Undersecretary to the Scottish Board of Health if he will state the number of men from the Island of Skye who enlisted for service in the late War; the number of those ex-service men who made application for small holdings on their return; and the number of cases in which such applications have been granted by the Board of Agriculture for Scotland?

I am informed that the records of the Military Authorities do not include statistics for the whole period of the War of the number of recruits from individual counties or parts of counties, and the information requested in the first part of the question is, therefore, not available. The number of applications for small holdings by ex-service men in Skye is 461, of which 134 have been withdrawn. 83 of the applicants have been settled on small holdings, and schemes in progress will provide for the settlement of an additional number.

Can the hon. Gentleman inform us whether there is any indication when the others will receive their small holdings?

I am afraid I cannot give an exact answer. The schemes are at present in progress.

Will the hon. Gentleman inform the House of the number of men who will be put on the land through these schemes?

The question on the Paper, Mr. Speaker, asks for a definite statement as to the number of holdings that are being given. The hon. Member now says that he requires further notice before he can give an answer to the question.

The question is as to the number of applications which have been granted, and I have answered that.

Is the hon. Gentleman aware of the intense indignation in the Island of Skye at the delay in the settlement, and will he hurry up the work of settling these men on the land?

A large part of the Island of Skye is in the hands of the Board for the purpose of settlement, and I am very anxious to get the matter expedited as much as possible.

Can the hon. Gentleman inform the House why 131 of these men who expressly wished to be settled on their native soil have now withdrawn their applications? Is it not due to the fact that the Board of Agriculture has delayed granting the land and the men have got tired of waiting?

The right hon. Gentleman was himself in the last administration, and perhaps he can give an answer to that question himself.

Can the hon. and gallant Gentleman say whether these 130 men voluntarily withdrew their applications, or whether it is the fact that they were struck off the list by the Board of Agriculture because the conditions attached to the granting of their holdings were too onerous.

In some cases they voluntarily withdrew, and in some cases, no doubt, they did not wish to take up the holdings under the conditions. A large number of men have taken up holdings under the conditions.

asked the Undersecretary to the Scottish Board of Health if his attention has been called to the fact that six ex-service men, John Grant, Alexander Mackinnon, John Nicholson, Alexander Mackinnon, Donald Mackinnon, and Aleck Robertson, all of Skye, were sentenced on Saturday last to two months' imprisonment for breach of an interdict obtained at the instance of Walter L. Johnston, of Strathaird, Isle of Skye; whether he is aware that these men had applied to the Board of Agriculture for small holdings and that, notwithstanding the lapse of time, none had been settled on the land; and whether he will put the matter before the Secretary for Scotland with a view of obtaining their immediate release and their settlement in small holdings at an early date?

61 and 62.

asked the Undersecretary to the Scottish Board of Health (1) whether he has intimated to the ex-service men concerned in the Strathaird case that they are no longer eligible for holdings under the Statutes relating to land settlement in Scotland;

(2) whether, as recently suggested, a special inquiry will be made by the Government into the agrarian situation in the Scottish Highlands, so as to prevent the imprisonment or enforced emigration of the landless?

asked the Undersecretary to the Scottish Board of Health whether he is aware that six ex-service men have been sent to prison for two months for seizing land at Strathaird, Isle of Skye, for the purpose of marking out crofts; that five of those men were disabled in the War, and that those men, when discharged from the Army, made application to the Board of Agriculture for small holdings, but have not had any settlement of their applications; and whether he can give any indication when the applications of those men, and of others whose applications have been made for several years, will be favourably considered?

The six men mentioned were sentenced by the Court of Session on Saturday last to two months' imprisonment for breach of an interdict granted by the Court on the application of the owner of the estate of Strathaird. These men applied to the Board of Agriculture for small holdings, and, according to my information, four of them were in recept of disability pensions at the time of application.

A land settlement scheme for the benefit of the township of Elgoll to which these men belong was completed in 1919 and provided 21 new holdings. None of these men was included in that scheme, but they could have been considered for holdings on other lands which the Board have acquired in Skye but for their illegal action. As a result of that action, their names have been removed from the Board's list of approved applications in accordance with the instruction to the Board which was publicly announced about 18 months ago. The sentences which the men are undergoing have been imposed by the Court in vindication of its authority, and, that being so, the case is not one in which the Secretary for Scotland can intervene.

The work of land settlement in the Highlands is proceeding as rapidly as the financial and other conditions permit. So far as the Island of Skye is concerned, the land which the Board acquired in the Bracadale district has not been completely allotted, and qualified applicants from the Strathaird district are eligible for consideration for holdings there. With regard to the inquiry suggested by the hon. Member for Clackmannan and Eastern Stirlingshire (Mr. Weir), my Noble Friend does not consider that an inquiry would serve any purpose in expediting land settlement or otherwise.

In view of the wide spread indignation in Scotland [ Laughter. ] This is no laughing matter. It is a very serious matter. That is the sort of treatment we get from people over there. In view of the intense indignation in Scotland with regard to the treatment of these men, is the Under-Secretary prepared to make representations to the Secretary for Scotland in order that an inquiry may be made, and Members of this House may have an opportunity of acting on behalf of these men?

Having regard to the fact that these men, who have been struck off the list of applicants for land settlement, applied so long ago as 1919 for land, before the Board of Agriculture was prepared to give them land, and having regard to the fact that they have been driven by desperation to take a patch of land, will the hon. Gentleman recommend his Noble Friend the Secretary for Scotland to restore their names immediately to the list?

Will the hon. Gentleman consider making an inquiry into the circumstances which forbid wounded ex-soldiers from emigrating, and that each one of these men has been wounded, and therefore has not been allowed to emigrate? Will he look into the special circumstances of these poor men and see if their names cannot be restored to the list, so that they can get an allotment of land?

Could we not appeal to the Prime Minister that these men who fought for this land and wished to have it to get a living should have the Royal clemency extended to them in the circumstances?

Is it not the case that these men, being wounded, cannot emigrate, and if they cannot be allowed to earn their living abroad, and if you now strike them off the list so that they cannot get a living at home, what does the hon. and gallant Gentleman expect them to do?

It is obvious that an inquiry into the circumstances of the sentence would not serve any useful pur- pose, for this reason. The sentence is imposed by the Court to carry out an order made by the Court, and no action which the Executive takes can have any effect on the action which the Court takes in this matter. It is not a case in which the Secretary for Scotland, in advising His Majesty as to the exercise of the Royal clemency, can have any locus standi, because of the fact that this is the sentence of the Courts which, as we have been reminded during the last few days, pay very little attention to the wishes of the Executive. In previous cases the previous Secretary for Scotland expressed himself as very anxious, and I am sure that my Noble Friend also would be willing and anxious, to convey to the Court, any representations that might be made on behalf of these men, and the matter would then lie with the Court, assuming that the men were prepared to carry out the terms which the Court had imposed. The striking of these men's names off-the list was an action taken in pursuance of a policy instituted by the late Secretary for Scotland. [HON. MEMBERS: "By what right?"] It is a little difficult to explain unless hon. Members will hear me. It was taken by the previous Secretary for Scotland because he knew, as everybody knows, that unless some order is maintained in the allocation of small holdings or anything else it is not possible to distribute them. With regard to the point that these men's names shall not be permanently withdrawn from the list, I shall be pleased to consider that matter, and make representations upon>t to my Noble Friend, but it must be clearly understood that it is unjust to other ex-service men who have been law abiding in the face of great provocation not to consider their claims also when there is a question of restoring these names.

As out of 431 applications made during a period of five years only 83 have been granted, how can you expect the remaining 350 men to remain patient and tranquil?

In the township from which these men came no fewer than 21 have been given small holdings. This is a question of six men. The proportion is one between six unsuccessful and 21 successful and not between 350 and 83, and there is still land to be distributed for which these men would have been eligible.

Several hon. Members rose

I understand that an arrangement has been made to have this matter discussed later on. We cannot have it debated now.

If we are to discuss this matter later on, it is necessary for the House to be in possession of the correct figures. I want to know whether the earlier or the later figures of the hon. and gallant Gentleman are correct. [HON. MEMBERS: "Order!"] The Speaker is the guardian of order in this House, not you. [HON. MEMBERS: "Order!"] You hold your tongues.

If the hon. Member will address his remarks to me, I will protect his rights.

The hon. and gallant Gentleman's earlier figure as to the number of applications was 431 during the last four years. Is that the correct figure, or is the later figure correct?

That was the figure for the Island of Skye. I also gave the figures for the township from which these men came.

I understood you, Mr. Speaker, to say that a private arrangement had been made to discuss this question later on. Representing the party which I do represent, may I say that we know nothing of any such arrangement. In the interests of private Members as a whole, I would like to know what that arrangement is? Those of us who are deeply interested in the matter, especially those of us who represent Scotland, and who do not know of the arrangement, are at a great disadvantage, and it is only right we should know publicly what that arrangement is.

I only referred to certain information which had reached me and, in doing so, I thought that I was meeting the wishes of hon. Members who desire to have the matter discussed. It could be arranged that the Scottish Estimates should be put down, which would provide a full opportunity for discussion on the Vote for the Board of Agriculture.

Should I be in order in calling the attention of the House to this matter, in view of its importance?

I have already ruled on that. Two matters have been referred to. The first—the breach of the order of the Court—cannot be raised on a Motion for Adjournment. The other is the alleged slowness of the Board of Agriculture in finding holdings, which is not a matter newly arising. It should be discussed in Committee of Supply. That is a matter which, according to some Members, has been long continued. It is, therefore, not a new matter.

May I call attention to the fact that the matter of definite and urgent public importance is, surely, that we have been told here to-day for the first time that these six men have had their names struck off the rota for lands? The Act under which these men are entitled to preference is on the Statute Book. My submission is that it is against the wishes of Parliament that an administrative act of this sort should be done in this way.

We have also been informed that the Order was issued by the late Government 18 months ago.

Have these men been treated under criminal conditions, or under the conditions of untried prisoners, which it is within the discretion of the Prison Commissioners to grant?

I have had no notice of that question, and I am not able to answer it definitely off-hand. I understand that they are not being treated as criminal prisoners, but are receiving treatment as civil prisoners.

Should that not be the case, will the hon. and gallant Gentleman promise to get those conditions?

Arising out of your ruling, may I submit that these men were sentenced to imprisonment on Saturday, that we have only just discovered that their names have been struck off the rota for land settlement, and that those two facts render this matter one of urgent importance, upon which we have the right to move the Adjournment of the House? I ask your leave to move the Adjournment of the House accordingly.

I have considered and dealt with that matter already. This action was taken in pursuance of a policy settled by the previous Government 18 months ago, and it is therefore not a new action on the part of the present Government. We can discuss the matter in the ordinary way.

Land Settlement, Eaglesfield

asked the Undersecretary to the Scottish Board of Health whether the Scottish Board of Agriculture has been able to satisfy the needs of the smallholders on the Broadlea scheme at Eaglesfield, Dumfriesshire?

I understand that certain difficulties have arisen in regard to the equipment of the holdings at Broad-lea, and that the Board of Agriculture are considering how far these difficulties can be overcome.

Will the Under-Secretary expedite the. settlement, as there has been delay for many months?

Is the hen. Gentleman aware that what applies to Dumfriesshire applies to many other places in Scotland, and that great dissatisfaction is arising because of the dilatory methods of his Department in dealing with the claims sent in by smallholders from various parts of the country.

I am aware of that. As the hon. Member knows, I have been in discussion with him on certain points regarding smallholders in his own area.

Housing, Glasgow

asked the Undersecretary to the Scottish Board of Health the number of houses it is estimated will be built in the city of Glasgow under the new Government housing scheme; and the number of houses in Glasgow which are occupied at present though certified by the medical officer of health as unfit for human habitation?

No estimate can yet be given of the number of houses that may be built in Glasgow under the provisions of any new housing scheme. I understand that the Medical Officer of Health of Glasgow has reported that 13,195 houses in that city at present occupied are not reasonably fit for habitation.

Can the hon. Gentleman say what is the figure for the houses to be built on which he bases his estimate of money which he has put in the Estimates this year?

I cannot discuss the financial provisions now. I am not able to form an estimate of the number of houses to be built.

Why does the hon. Member say that, if he has formed an estimate for the purpose of making financial provision?

Questions

India (Finance Act, 1923)

asked the Prime Minister when he intended to give an opportunity to the House for moving the humble Address to His Majesty relating to the Indian Finance Act, 1923, standing in the names of the hon. Members for Central Newcastle (Mr. Trevelyan) and Bow and Bromley (Mr. Lansbury), in view of the fact that the eight days within which the Address must be presented or rejected expires on Monday, 4th June?

No, Sir. The Act is already in operation, and the only action which would be open to this House is to pray His Majesty in Council to disallow it. It would be unusual to allow time for discussion of such a Motion.

Is the right hon. Gentleman not aware that the action of the Viceroy in certifying this particular Finance Bill under Section 26 of the Government of India Act is exactly on parallel lines with his certification of the Protection of Princes Act? In the circumstances may I ask why it was in our power to claim a day in the first case, and why we are refused an equal privilege on this occasion?

I have been at some pains to acquaint myself with the facts. I understand that the action of the Viceroy was taken under the Government of India Act, 1919, Section 67, Subsection (2) Proviso. This matter can be raised at any time on the India Estimates, when the Viceroy's conduct can be debated. It is open to His Majesty in Council at any time to disallow the Act. The specified number of days during which the Paper is laid before the House have nothing to do with it. As a matter of fact, acting under the proviso, the laying of the Paper is purely formal, as the Act is in operation.

Do I understand that the Viceroy acted under the proviso which says he can take such action in cases of emergency? Is it alleged that there was at that time in India an emergency which authorised this action?

Business of the House

Would the Prime Minister tell the House what business he proposes to take to-day?

I hope to proceed with the first Order, the Agricultural Credits Bill, and to take the Committee stage of the Financial Resolution, and of the two Agricultural Holdings Bills, on which I understand there will be practically no discussion, and, if possible, the Third Readings of those Bills. I hope also to take the Second Reading of the Workmen's Compensation (No. 2) Bill, the principle of which was discussed at considerable length on Friday. The Bill is generally desired by the House. I hope that that business will be finished in time to allow discussion of the subject in which Scottish Members have just shown so much interest, namely, land settlement in Scotland.

Can the Prime Minister give us a guarantee that none of the public business which he has just outlined will be taken after 9 o'clock, so as to ensure that the promise of an opportunity for discussion of the Scottish Land Settlement question will be carried out?

I cannot give a guarantee about the conclusion of the public business, but from the information I have, I hope it will prove non-contentious, and that time will be allowed for the discussion promised.

Personal Explanation (Mr.Sexton)

My object in rising is to appeal to you, Mr. Speaker, and to the House generally, for an opportunity to make a personal explanation with respect to an unfortunate incident which somewhat disturbed' the House yesterday. I happened to use language which does not come quite within the range of Parliamentary language, but I think the House will admit, or those who know me will admit, that this was the first time since my association with the House that I have indulged in such a luxury. It is. sometimes a luxury to give vent to one's pent-up feelings in language that is more vigorous than polite. The incident to which I refer occurred during the introduction of a Bill by the hon. Member for the Macclesfield Division (Mr. Remer), who, I am sorry to say, is not in his place. I notified the hon. Member that I was about to raise this matter, and I am sorry that he is not here, because I do not like to take advantage of a man behind his back. Therefore, what I have to say may not perhaps be quite as vigorous as it would have been if he had been present.

It will be within the recollection of the House that during his speech in introducing the Bill, erroneously entitled "Freedom of Labour Bill," he was challenged to cite a case. I have fortified myself by consulting the OFFICIAL REPORT, and the case he gave was cited in such a way as to implicate only two Members in this House, myself and my colleague the Member for North Salford (Mr. Tillett). A more provocative statement it would be impossible to conceive, and, although my language at the time was picturesque, I hope the House will admit that the provocation almost justified its use. I am now, however, quite ready to express, particularly to you, Sir, and to the House generally, my sincere regret for having temporarily lost my self-control. The statement made by the hon. Member in order to prove his case is embodied in the OFFICIAL REPORT. The hon. Member for Macclesfield and myself have been on the most friendly terms, and the first thought that occurred to my mind was that if I had had anything to say reflecting in any way upon the hon. Member for Macclesfield I should have notified him that I intended to raise the matter and thus given him an opportunity of refuting it. But in order to create a reputation under the Ten Minute Rule the hon. Member for Macclesfield—

I am not able to hear the hon. Member. Would he address me? The House will readily hear him, but he must not diverge from his personal explanation into an attack on the hon. Member for Macclesfield.

I will endeavour to use language and terms which will fit the occasion so far as the circumstances will permit and not to transgress your ruling or the laws of the House. On what did the hon. Member for Macclesfield base his case? Speaking of one union, he said that the subscriptions amounted to only £5,000 and that £2,000 was paid to a Member of Parliament as his salary. When the hon. Member was asked for the name, he said that it was the Dockers' Union and that he could multiply examples. It is quite true that the hon. Member afterwards, when he found himself floundering, endeavoured to modify his statement by saying that what he meant was salaries and expenses. Unfortunately for the hon. Member, in his undignified hurry to escape the tidal wave of his own imagination, he left the baby on the shore in the shape of his own Bill. It was rescued by the hon. Member for Penistone (Mr. Pringle) and entrusted to my fatherly care. I have nurtured it, and I intend to nurture it in my bosom in the future. The wording of the Bill is quite plain.

There is not a word about expenses. Further on, the hon. Member said:

As a matter of strict fact, there has been no union for the last three years rejoicing in the title of the Dockers' Union. Previously to that, I was the custodian of the morals, such as they were, of one big union, and my hon. Friend the Member for North Salford was the other. I have searched the records, and, speaking for myself, I can honestly assure the House that there is not the slightest foundation for any such statement, any such balance sheet, or any such item. I could go on, but I do not want to detain the House. My one consolation, however, is that this attack received its due merit in the Division Lobby. I am further consoled by the knowledge that the esprit de corps of this House will survive any attempt on the part of the hon. Member or of his friends to eradicate that feeling which is the pride of this House.

Lieut.-Colonel Watts-Morgan

The hon. and gallant Member was not attacked, and I do not see how the matter applies to him.

I wanted to offer an observation or two on the rebuke which you gave me on Monday, when I was responsible for some interruptions on the first day that the Home Secretary was present. I just wished to say to the Home Secretary and to the House that there was no personal animus at all in my action, and I desire to assure him that I have the highest regard for him. If I said anything which he may have regarded as an insult, I offer him my sincere apology and regret, as I do to you, Sir, if I transgressed the rules of good behaviour and conduct in this House, and I hope that it may be overlooked and forgotten.

Suspension of a Member

I beg to move,

The Motion which stands in my name as Leader of the House has been put down following upon a Motion which I moved just before the Adjournment of the House for Whitsuntide. I have it from Mr. Speaker that the hon. Member for Motherwell (Mr. Newbold) has written him a letter containing an ample and a complete apology, in which he expresses his hope that this will be received by the House, as he offers it, as an expression of regret made without reservation and in all good faith. The House of Commons is always generous to appreciate an apology of that kind, and I beg to move the Motion which I have put down this day in my position as Leader of the House,

Question put, and agreed to.

Ordered,

Selection (Standing Committees)

Standing Committee B

Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had added the following Member to Standing Committee B (during the consideration of the Explosives Bill [ Lords ] and the Forestry (Transfer of Woods) Bill): Sir William Joynson-Hicks.

Report to lie upon the Table.

Message from the Lords

That they have agreed to,

Amendment to

Thomas Cheshire and Company (Delivery Warrants) Bill [ Lords ], without Amendment.

That they have passed a Bill, intituled, "An Act to consolidate the Acts and Orders relating to the electricity undertaking of the Mayor, Aldermen, and Burgesses of the Borough of Stoke-on-Trent and to confer further powers upon them with respect thereto; to consolidate the local rates in the borough; to establish a savings and housing bank; to make better provision for the health, local government, and finances of the borough; and for other purposes." [Stoke-on-Trent Corporation Bill [ Lords. ]

And also, a Bill, intituled, "An Act to provide for the consolidation, with Amendments, of the local Acts and Orders in force in the Borough of Lytham Saint Annes; to confer further powers upon the Mayor, Aldermen, and Burgesses of the borough in relation to their tramway, gas, electricity, and market undertakings and for the acquisition of additional lands; to make further provision for the improvement, health, and good government of the borough; and for other purposes." [Lytham Saint Annes Corporation Bill [ Lords. ]

Guardianship of Infants Bill [ Lords ],

"That they propose that the Joint Committee appointed to consider the Guardianship of Infants Bill [ Lords ] do meet in Committee Room C on Wednesday, the 20th of June next, at half-past Eleven o'Clock."

Consolidation Bills,

"That they propose that the Joint Committee appointed to consider all Consolidation Bills of the present Session do meet in the Chairman of Committees' Committee Room on Tuesday next, at Twelve o'Clock."

Stoke-on-Trent Corporation Bill [ Lords ].

Lytham Saint Anne's Corporation Bill [ Lords ].

Read the First time; and referred to the Examiners of Petitions for Private Bills.

GUARDIANSHIP OF INFANTS BILL [Lords]

So much of Lords Message as relates to the Guardianship of Infants Bill [ Lords ], considered.

Ordered, That the Committee appointed by this House do meet the Lords as proposed by their Lordships.—[ Colonel Leslie Wilson. ]

Message to the Lords to acquaint them therewith.

Consolidation Bills

So much of Lords Message as relates to Consolidation Bills, considered.

Ordered, That the Committee appointed by this House do meet the Lords Committee as proposed by their Lordships.— [ Colonel Leslie Wilson. ]

Message to the Lords to acquaint them therewith.

MINISTRY OF HEALTH PROVISIONAL ORDERS (No. 5) BILL

Reported, with Amendments [Provisional Orders confirmed]; Report to lie upon the Table.

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

Rent and Mortgage Interest Restrictions Bill,

"to amend and prolong the duration of the Increase of Rent and Mortgage Interest (Restrictions) Act, 1920, and any enactment amending that Act, and to make provision as to the rent and recovery of possession of premises in certain cases after the expiry of that Act; and for purposes in connection therewith," presented by Mr. NEVILLE CHAMBERLAIN; supported by the Attorney-General, Captain Elliot, the Solicitor-General for Scotland, and Lord Eustace Percy; to be read a Second time upon Monday next, and to be printed. [Bill 154.]

Orders of the Day

Agricultural Credits Bill

Order for Second Reading read.

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

On a point of Order. I would like to ask if we are to have an explanation from the Parliamentary Under-Secretary for Health, Scot land, or anybody representing the Scottish Office in connection with this Bill. The Bill refers to both countries, and our experience in regard to the Housing Bill was that we had—

The right hon. Gentleman cannot raise that point at this stage. The Minister in charge of the Bill must first be heard.

The question of my right hon. Friend (Mr. Macpherson) is quite a natural one, and I am happy to inform him that my hon. and gallant Friend the Parliamentary Under-Secretary for Health, Scotland, will be present and will be ready to explain any point that arises with respect to Scotland. The Bill deals with three different questions in three different Clauses, each of them independent of the other. The first Clause deals with a rather exceptional case. It deals with the period at the end and just after the War, during which the Corn Production Acts were in force. It is common knowledge that at that period a great deal of land came into the market. The reason is not very far to seek. For a great many years past the ownership of land has been less an investment than a luxury and, at the period to which I refer, landowners themselves found it was a luxury that was becoming too expensive to be kept up. Everyone is aware that at that particular time the cost of living and the burden of taxation had risen to very great heights. Everything that had to be bought had risen by over 100 per cent. This applied to a period of some years, so I will not quote any exact figure, but I am safe in saying that the rise in practically everything during that time was considerably over 100 per cent, with one exception, and that one. exception was the rent of agricultural land. I will not say that the rent did not rise at all. I cannot ascertain exactly what the average rise was; it certainly was not a large one, and at the very highest it cannot be put at more than about 25 per cent., so that, while every expense which the landowner had to bear had gone up by 100 per cent, or more, the source of his income had only improved to the extent of 25 per cent, at the very most.

There was nothing to which this rise in cost applied more than to repairs. I think it will be admitted that at the time immediately succeeding the War, this was particularly the case, and while, at any time, the cost of repairs always eats up a very considerable portion of the income from landed estate, during this particular period it not only took the whole of it, but very often left a margin on the wrong side. Income from land was really practically exhausted so far as the landowner was concerned. In many cases land was producing little or nothing in this way, but the curious thing was that it continued to sell pretty well. Therefore, it was not unnatural that a-great deal of land should come into the market at that time, simply because the landowners unless they were rich men, could not afford to keep it. A good deal of that land was bought by the farmers who were in occupation of it. It was bought by them for a variety of reasons. The first reason I think was that a great many men were loth to leave the homes in which they and their families had lived in some cases for generations past, not an economic principle, but a natural and, I think, a praiseworthy feeling. There was another feeling which I think no less praiseworthy. I myself spoke to a farmer during those years and said to him that I wondered why he did not do as a great many others were doing— clear out and give up farming at the top of the market, just when he had been doing very well and when all the stock, implements, and everything he-possessed would sell for prices which they could never be expected to realise again. He said to me, "What should I do next? The only trade that I know is farming; I am not an old man, and L do not want to be idle for the rest of my life."

I thank that was an entirely praiseworthy feeling which animated a great many farmers who bought their land then, and there is no doubt about the fact, too, that they bought it, because at that time they were doing very well in their business. When a man is doing very well in his business he always has the hope, and I may say more than the hope, the expectation, that the good times he is experiencing are going to last. That was not only a natural feeling of hope, but was a feeling fostered a good deal by the action of this House. I am not going to refer to the promises which were given during that period by politicians of less or greater eminence. I think it would be a very risky principle to lay down that the State should give any compensation to a man who embarks on a certain enterprise, on the assurance of political promises, but there was more than that. There was a great deal more than political promises; there was actually the assurance of the Corn Production Act and the Agriculture Act which succeeded it. I do not think any man could have justifiably expected that the second of those Acts was going to be repealed six months after it was passed. For that, if for no other reason, I think there is a good deal of justice with those who claim that there is a moral obligation on the State to do what it can to help in the emergency which has arisen.

In the purchase of these farms, in most cases, a very considerable proportion of the price was paid with borrowed money. The money was borrowed from various sources. A great deal was borrowed from the banks, some from relations, some from solicitors who had trust funds to dispose of, and some from various societies, such as the Farmers' Land Purchase Company, and a great amount was left on mortgage by the vendors, generally on terms that it should be paid back by instalments varying in size and degree. As a rule, the loans which were used for the purpose of buying the farms were not for very long terms. In the case of the banks, it is not a bank's business to tie up its money for long terms. No one alleges for a moment that the banks have been hard or have been treating the farmers unfairly or unjustly. I do not think that is alleged by anyone, but it is not a bank's business to lend money on long terms. It is lent from year to year, and there is a considerable degree of uncertainty in the minds of the borrowers as to when that money may have to be called in. The same remark applies to the various other sources that I have enumerated, from which this money was borrowed. In the case of mortgages, there is the fact that, if a mortgage has fallen in and the money has to be borrowed again from someone else, considerable legal expenses will result. There is also the fact that in some cases the borrower is paying a fairly high rate of interest for the money he has borrowed, and it has to be remembered that the more he pays in interest or sinking fund for mortgage the less he has left for the working expenses of the farm, for wages, for the purchase of stock, and for the hundred and one expenses which an occupier of land has to meet.

There is the situation with which the first Clause of the Bill proposes to deal. It proposes to enable men who bought their farms between the date of the introduction of the Corn Production Act in 1917 and the date of the introduction of the Corn Production Acts (Repeal) Act in 1921, to obtain mortgages repayable by annual or half-yearly payments of interest and sinking fund up to 75 per cent, of the present value of their farms. These mortgages will be granted by approved associations which will be restricted in their profits. I understand the Farmers' Land Purchase' Company, an already existing company, and a statutory body which has already done some business of this kind, proposes to put itself in a position to act as an approved association as soon as the Bill is passed into law. These associations will obtain the necesary funds from the Public Works Loan Commissioners, and will make the loans to individual borrowers, and the associations will be responsible for collecting the interest and sinking fund payments. The House is probably familiar with the Report on which this Bill is founded—the Report of Sir Theodore Chambers' Committee on the subject. That Report was issued some months ago. In it, it was proposed that these loans should be repayable in 40 years, and it was reckoned that the charge for interest and sinking fund would come to £6 8s. 3d. per cent. A good deal of criticism was aroused as to that rate being unduly high. Negotiations went on during the period between the issue of that Report and the introduction of this Bill, and while some of us regretted that the Bill could not be introduced earlier, I think the intermediate time has not been badly spent. The delay has not been unfruitful, because the Government is now prepared to sanction loans repayable in 60 instead of 40 years, and, as now proposed, the interest and sinking fund on loans will work out at a considerably reduced percentage, namely, £5 10s. 7d. per cent. as against £6 8s. 3d. per cent, originally proposed when the scheme came out.

The rate of interest will be the same, but the Sinking Fund will be reduced.

Not entirely. It is partly Sinking Fund and partly expenses. There is a quarter per cent, for expenses. There is 5 per cent, interest on the loan which the Public Works Loan Commissioners will advance; there is a quarter per cent, for expenses, and 5s. 7d. Sinking Fund. There is a reduction on the previous proposal of 17s. 8d. per cent., and on a mortgage of £5,000 that would mean a difference of £44 3s. 4d. per annum. That, I think, is well worth waiting for, so that the delay that has occurred in the introduction of the Bill has not altogether been time badly spent. So much for Clause 1.

Clause 2 refers to short-term credits. I suppose that agriculture has about the slowest turnover of any industry. You hear about settling men on the land; you hear about "Back to the land," and so on. You may put a, man on the most fertile land to be found, and he will starve before he gets any produce unless he has either capital or credit to carry him through in the meantime. On arable land he has got to buy seeds, implements, fertilisers, and on pasture land lie has got to buy stock, as well as many other things, and, besides all that, if he farms on any considerable scale at all, he is sure to wish to spend a certain amount on improvements. It is the fact that all over the country land is very largely farmed upon credit. The credit comes from various sources, and, first of all, from the banks. The banks have now £20,000,000 in overdrafts lent out to farmers in this way. Then there is a very large sum that is always out from dealers, tradesmen, and those from whom the farmer buys his stuff. A great deal of that money is left on credit. That seems a bad system, and in the Appendix to the Selborne Report some very trenchant things are said about the way in which the farmers are in the hands of dealers and tradesmen. I think it is only fair to the dealers to say that the Committee' that investigated this subject formed the opinion that, taking things as a whole, the dealers and the tradesmen were not behaving badly to the farmers of the country, and there does not seem to be any truth in the allegation that they are playing the part of Shylock. Still, the less that a farmer has to owe to his tradesmen the better.

This subject was exhaustively discussed in the Report of Sir Theodore Chambers' Committee, to which I have referred, and after going into the subject very thoroughly, they came to the conclusion that further short term credit facilities were needed. Looking about for a means of supplying that need, it was natural that they should consider what is being done in foreign countries. In practically every Continental country, in India, and also in the Dominions, systems of cooperative credit have been established. The scheme recommended by the Committee and embodied in the Bill is the formation of co-operative credit societies, as the authors of the Report believe that the most effective way of increasing the farmer's credit status is by inducing him to link up his credit with that of his fellows, and this scheme would apply, not only to the farmer, but to the smallholder as well, and to the labourer. If a labourer wants to buy a pig, it might help him towards that desirable object. The proposal is made that steps should be taken to promote the setting up of cooperative credit societies, the idea being that such societies should he formed with £l shares, of which 5s. should be paid up. For every such £1 share with 5s. paid up the State would be prepared to advance another sovereign. There was a famous Bill some years' ago which was recommended by its author as giving 9d. for 4d This gives Is. 8d. for 4d. [An HON. MEMBER: "A dangerous analogy! "] It was proposed in the Report that such societies should be limited to the rural districts, but such a Clause does not appear in the Bill, and, on thinking it over, we do not propose to lay down any definite limits as to the scope of these credit societies. We want to maintain elasticity. It may be that in some cases a bigger society and in some cases a smaller society will be more capable of meeting the needs of the particular area.

If the allotment holders subscribed, certainly. We have existing co-operative trading societies, but we do not want to allow them to call themselves credit societies and to come in ready made. We do not think that; would be fair to the trading interests in general, but there is no reason why the members of such societies should not form themselves into credit societies, and I must say that I hope that they will, where possible, assist in that way. Indeed, if anyone wants to assist agriculture, I think his activities could hardly be better employed than by helping to form such cooperative societies as I have tried to foreshadow. I think that it really may be of great assistance to all classes of agriculturists, both great and small, but they have got to depend chiefly upon voluntary efforts. The essence of co-operation is self-help and mutual trust. It is not a system that it is either desirable or useful for the State to try and impose. It must develop through voluntary effort. It must come from below, and it cannot be imposed from above. All that the State can do, and will do, is to assist and encourage its growth as much as ever it can.

The third Clause of the Bill is somewhat legal and technical. It applies to land improvement companies that advance money to landowners. This Clause amends and extends the provisions of the Improvement of Land Act, 1864, and certain private Acts obtained by land improvement companies, under which landowners can charge their estates with the cost of improvements. The moneys advanced are not public moneys. These Acts limit the rate of interest to 5 per cent., and this limit has been found insufficient, owing to the rise in the value of money. When the Acts were passed, 5 per cent, was considered a reasonable limit to put on the interest to be charged, but it is notorious that in the years following the War 5 per cent. was not an exorbitant but a comparatively low rate of interest, and that meant that some companies could not lend at all, because the 5 per cent, to which they were-limited was below the then current rate. So it is proposed by the first and second Sub-sections of Clause 3 to remove this-limit and to give the Minister discretion, as to the rate which may be charged. The third Sub-section deals with the improvements which may be the subject of an improvement charge. When the Settled Lands Act of 1882 was passed, the enumeration of improvements contained in the Act of 1864 was extended to cover all improvements authorised by the Act of 1882, and those improvements have again been extended by the Law of Property Act that was passed last year, but that Act does, not come into force till 1st January, 1925, so that the effect of Sub-section (3) of this Clause is to make the extension operate at once, instead of having to wait for it till 1st January, 1925. It is rather technical, and it is not a very important matter, but it is a matter on which the law wants that small alteration made.

Those are the provisions of the Bill. It does not profess to be anything that can be described as heroic legislation. I am not going to pretend that it will remedy agricultural troubles all in a day, but I believe it will help, and at all events it is an honest attempt to give some assistance where it is particularly needed, and, as such, I commend it to the House.

I should like, in the first instance, to congratulate the Minister of Agriculture on being the medium of the first tardy act of repentance on the part of the Government, which is largely composed of those who repealed Part I of the Agriculture Act. It seems to me that this is their first effort to make something in the nature of reparation for the great wrong that they have done. The Minister, in speaking on this subject, said that people would be very foolish to put their trust in political promises, but the Act of the late Government was not a political promise. It was a solemn Act that was passed through this House, and through another place, and confirmed by His Majesty the King, and that is something more than in the nature of a political promise. It is an instrument that the late Government, at any rate, had no hesitation in throwing overboard. I re- gard this as a tardy act of repentance, but it is a very small one. I do not quite know what the Minister hopes to attain by this Bill, but in so far as I can judge it deals in the first place and in the principal Clause with a very small section of the agricultural community. Those men who, according to the statement of the Ministry itself, bought their farms under these special and peculiar circumstances, certainly do not number more than 13,000 out of the total agricultural population, which is a very small percentage indeed, and those men are not necessarily those who should be singled out for special assistance. I do not want to say anything at all on the subject of why some of them were compelled to buy their farms, why some of them, permeated by a good deal of land hunger, wanted to buy their farms, but the fact remains that they are a very small percentage of the agricultural population, and this Bill seems to be solely designed with the idea of helping them.

Will it help them? I have very grave doubts on that subject. Taking the illustration contained in the Report to which the Minister has referred, it is generally conceded that the fall in agricultural land values is at least 30 per cent. In this Bill it is proposed that not more than three-quarters of the present value of the land should form the subject of a mortgage, and one wonders what would be the position of a man who bought his farm and who, at the time he bought it, obtained, say, practically its full market value in the shape of a loan from the bank. How are you going to help him out?

In some instances the banks were very anxious to lend at that particular time, and advanced the full value of the land. I am fortified in that by the Government's own Report, but I know, very largely from my own knowledge, that very large sums were advanced. However, let us take it that they advanced only three-quarters of the value. What is the position to-day, with the fall of 30 per cent., and in some instances a great deal more, in the value of land? How much will the Bill help? Do not forget that in the meantime the man has been subject to a considerable amount of pressure by the bank, and possibly he has. hypotheticated his land and a good deal of his other possessions. What is his position? Unless some very great elasticity is given in the matter of the administration of the Act, I do not see how it will help him at all. He will not be in a position—he cannot be in a position—to give a first mortgage and free his land. Supposing he can, and does give a first mortgage, I am not quite sure the terms even now are likely to be very attractive. Let us consider this question. He pays, according to the statement of the Minister, including redemption, £5 10s. 7d. per cent. That seems to be a very large sum to get out of agricultural land, a very large sum indeed, and he has to-pay it for 60 years. Assuming a fall in the rate of interest during that period, has the Minister provided any machinery by which the mortgagor can take advantage of the fall in interest, or is this to be a chain around his neck, and bound upon the land, for the full period of 60 years, no matter what the condition of the money market may be? That point, at any rate, is worth some consideration.

Does the Minister know quite what he is doing in connection with this Bill? We rather welcome this Bill, especially in some of its aspects. It is going a long step towards the national ownership of land. I am quite prepared to believe that a good deal of money will now be advanced—one can hardly expect advances will be found for those men who have bought farms during the period —and pressure will soon be brought to extend these privileges, and the thing will become enlarged to the extent that more land will have to be bought to help suffering agriculture. The Government has made a very good step forward in the way of national ownership. We do not quarrel with them on that account. [HON. MEMBERS: "Some of us do!"] I am not quite sure that they know what they are doing just at the moment!

There are at the present time many of those who purchased their farms during the period prescribed in the Bill. There are three different classes. There are the men who purchased their farms relying on the advance and State guarantee. The Bill, so far as they are concerned, will have the effect that I have already described, especially if they have obtained a very large advance on the value of the land. But there were others who suffered in consequence of the act of the Government when they repealed Part I of the Agricultural Act. What will this Bill do for those who bought their land and farms and paid for them themselves? Values have since fallen. They put all their capital into their farms. I should like to know what the Bill proposes to do for those who suffered just as much as those who took money on mortgage. Something should be done for them. The amount of good that this Bill will do is very partial indeed. I do not think it will be of any real value at all. I am inclined to believe that the Government might have taken into consideration an entirely different scheme that would have avoided altogether the necessity of bringing in a Bill of this description. So far as I can see, they have entered into collusion with a financial company—I am not using the- word ''collusion" is an offensive sense—but a compact with a financial company which has expressed its readiness to undertake this business. It is not a philanthropic society, but some body that is going to make a bit out of this. They would not be anxious for the business unless they knew that the State was at the back of them, and that they could get something out of it. I do not know whether this was really necessary, for the Ministry have had some experience of making advances and giving credit through their agricultural committees. They have a very highly qualified staff who know the value of land exactly, and it would have been a very easy thing for them, through the agricultural committees, to guarantee the banks or the farmers over this period of financial difficulty. That would not be a very big order.

I do not believe the Government would lose any money at all on this matter. It could be easily done, and would be far less cumbrous than the method proposed. All they have got to do is to take the banks into their confidence and to arrange with the local agricultural committees as the men who know exactly what is the value of the land. There is the Commissioner who has been trusted very largely to buy enormous areas of land, and I think they should manage the business very well. At any rate, I merely suggest that it is worth considering whether it would not be more to the benefit of agriculture than any of the details described in this Bill. I do not know that I need say anything further on that subject.

I welcome the suggestion of agricultural credit societies and co-operative societies, but I doubt very much the capacity of the Ministry of Agriculture to carry these suggestions into effect. I have seen something of agricultural propaganda, and it will require an enormous amount of education before you can get the people of the country to act in a co-operative manner. I think it is quite a good thing to do, and to give them all the education we possibly can, but this is not to be done by a stroke of the pen. It will be a slow and very difficult process to get men who have been accustomed to attend one market a week, and—if they can manage it—three or four, and to hunt for two or three days—into the mind of entering a co-operative society for the purpose of transacting their business. In a lesser degree even the smaller farmers are tainted with the same prejudice. They like to do their own bargaining, and their own buying and selling. It will be a long, difficult process to bring them into line, and I hope the Ministry is prepared for that. If it can be done, it will be a very great advantage for agriculture.

I should like to ask the Minister a question in regard to that particular point. Does he propose to make his various co-operative societies purely local and each one independent of the other, or does he hope to amalgamate them and to bring them all into one large co-operative society spread over the whole country? Perhaps he will tell us when replying what are his views in that connection. So far as the Bill is concerned, although we have no great belief in its value so far as agriculture is concerned, we do not propose to vote against it. So far as we possibly can, we want to improve it and to make it a larger benefit We want the Minister to take into consideration whether he cannot apply the co-operative principle afterwards when some of these farms on which he has advanced money on mortgage begin to fall into his hands. He will have to take steps in the way of co-operative farming or farming the land through his agricultural committees—if they are then in existence ! Perhaps he might take their advice to look a little bit ahead in that connection, for certainly he will find a very great difficulty in the matter of the administration of some of the land which will inevitably fall into the hands of the mortgagees. I presume since he will have advanced the money that he will be very much interested in this land.

I would again congratulate the Minister on being the means of bringing in this Bill as a tardy act of repentance. I am sorry that in connection with it he has made no mention at all of one aspect, except to say that the agricultural labourer might be able to buy a pig through one of the co-operative societies, when they get into operation. He has, otherwise, made no mention of how the agricultural labourer is going to get anything by this Bill. He, the labourer, is worth some consideration, for he has been the greatest sufferer of all in the agricultural community. I think some consideration might have been shown to him in this connection. I understand that a Measure is being put forward, and I hope that it will be brought forward very soon. Our attitude on this and the other Bill will depend very largely on how the Government view agricultural subjects as a whole. The party on these benches wants to see the agricultural labourer receive some consideration as well as the farmer. They have no objection to the farmer receiving help, but he should not be the only member of the agricultural community to receive Government assistance. Therefore, we shall strongly demand that the interests of the agricultural labourer shall be considered at the, same time as those of the farmer and the landowner.

5.0 P. M.

I should like at the outset to congratulate my right hon. Friend the Minister of Agriculture and the Government upon the introduction into our policy of a very important factor. In principle this shows a very great advance in the care which, in my opinion, every Government ought to take of the premier industry. If I ask any questions or make any criticisms on the Bill, my right hon. Friend will accept my assurance that I do so without any obstructive or hostile spirit, but merely from a sincere desire to make this Measure of the greatest possible benefit to the agricultural community whom it is intended to assist. Before coming to the Bill, I should like, as a personal matter, to express my sincere appreciation and thanks to the right hon. Gentleman and the officers of his Ministry, and the Treasury, for the courtesy which they have shown towards the two statutory companies that he mentioned in his speech, and which expect to be very largely concerned with two parts of the Bill. Some suggestions put forward on behalf of these companies are already embodied in the Bill, and I thank the right hon. Gentleman very much for that. The hon. Member who has just spoken asked a very material question. He inquired: "Will this Bill help?" Personally, I believe that it will help, and help very materially. I am not talking now of the short-term credits; but I think the proposal for long-term credits will help very much. Although it is true at the present time that farmers, who have bought their farms and borrowed money from banks and others, are finding little difficulty in keeping their loans alive, yet the time must inevitably come when, with a revival in industry and trade, the banks will require their finances for other purposes, and many of the loans now outstanding at easy rates will be called in. It is of the utmost importance, in my opinion, to the farmer who has purchased his land that he should have a loan which cannot be called in so long as he complies with the conditions of payment of interest and instalments of capital. It is that form of loan which will be established under Part I of the Bill. I congratulate the Minister upon it, particularly if one or two points can be met in Committee. Part I will be of very material value to the occupying owner and the farmer.

I want to ask one or two questions, if I may, about Part I, in the hope that my right hon. Friend will clear up any doubts we may have in his reply on the Second Reading Debate, or, failing that, that his advisers may look the points up before we reach the later stages of the Bill. My first one is this. I do not understand, under Clause 1, that it is proposed that the Treasury or the Public Works Loans Commissioners should take the risk of the default of the individual borrower, but that they only take the risk of the approved society which lends the money to the individual borrower. I If that be the case, I do not think that ¼ per cent, ought to be added to the current local loans rate. In listening to my right hon. Friend's speech when he stated that the Public Works Loans Commissioners would advance the money to approved societies at 5 per cent., I gathered that that was the current Local Loans rate of 4¾ per cent, plus the reserve fund of ¼ per cent, which was recommended by the Cabinet Committee on Credit as a provision against default; and I do not think it would be right to put that reserve fund in Treasury hands or in the hands of the Public Loans Commissioners and throw the whole primary burden upon the approved society, who would not be able to make a corresponding provision in the way of reserve fund.

There is another material point, about which I should like to ask a question, in regard to Clause 1. It is material for this reason, that it will make a great deal of difference to the initial expenses of the loan. It is whether it is proposed that the Public Works Loans Commissioners, when lending money to Approved Societies, shall be content with a deposit and equitable charge of the title deeds, or whether they will require a transfer of the mortgages to them. That makes a lot of difference in the time that will elapse in arranging for the individual loans. That question I am asking, because it will save a great deal of time at later stages of the Bill, and I will endeavour to raise nothing that should be left over to Committee. The second Sub-section of Clause 1 limits the operation of these loans to purchases between two particular dates. I very much hope that the Government may see their way to cut out the later date. I think it will lead to a good deal of complication and difficulty. It may be a matter very difficult of definite proof as to what was the date when an agreement to sell actually took place. If both of these dates are insisted upon as they appear in the Bill, I hope the right hon. Gentleman will be able to assure us that a Statutory Declaration as regards the date will be accepted as satisfactory proof, because I think it may prove quite impracticable to get a more definite proof of date.

With regard to paragraph ( c ), there is a very general feeling that the Government, in endeavouring to meet a hardship which was admittedly created largely by the action of their predecessors in office, should stretch a point and extend the limit to something over 75 per cent, of the value of the farm. I am not going to say much about this point beyond merely stating that it is a very general desire; it is a point taken up strongly by the National Farmers' Union, by the Agricultural Committee in this House, and by all other bodies who have taken an interest in this question. The grounds for putting forward this contention are that a limitation to 75 per cent, may to some extent prevent the assistance of this Bill being available to those who need it most, and, secondly, that everything seems to point to the fact that the slump in values has more or less come to an end, and that the risk of placing a higher figure than 75 per cent, as the limit would be much less now than it would have been before the rapid decline in values. My hon. Friend the Member for Holland with Boston (Mr. Royce) referred to this point and said that in a great many cases the whole value of the farm had been advanced. Where the value of a farm changing hands was taken into account, I do not think the full value was advanced, but there were a number of cases of two kinds which rather lend force to his argument. There were a number of cases where banks advanced not only on the value of the farm, but on the general credit of the farmer, and the total sum advanced was then undoubtedly in excess, in many cases, of the 75 per cent, of the value of the farm.

I would refer my hon. and gallant Friend to the Report of the Committee which dealt with this matter. They say that there are many instances where the full value of the farm has been advanced.

On page 11 of the Report of the Agricultural Credits Committee it is stated that the banks appear to have lent anything up to the full value of the farm, according to circumstances, though usually there was a margin of at least 25 per cent.

These were the cases I was referring to, where the general credit of the farmer was taken into account as well as the value of the farm. There is another class of case where the amount advanced by way of mortgage was arrived at not on the then value of the farm but on the purchase price, which is in many cases a very different thing. I know from my own knowledge quite a number of cases in which an excessive price was given for a farm. Seventy-five per cent, of that excessive price was borrowed, and although there have been reductions of the capital loan in the intervening years, there are amounts still outstanding which certainly exceed 75 per cent, of the present value.

We now come to paragraph ( e ), which is one of great importance. It includes mortgages of two types; one in which interest is paid and repayment of capital is made by instalments, and the other in which repayment is made on what is commonly known as the annuity system in which the payment of interest and instalment together is the same throughout the whole period of the loan. Under the former system the capital repayment remains the same and the interest gradually falls. The annuity system is of great advantage from the farmer's point of view, because it keeps the cash payment required to be made by him yearly or half-yearly as the case may be at the lowest possible figure in the early days, and it is in the early days that we want the figure as low as possible; but it has this disadvantage, that the rate at which the outstanding capital amount of the loan is reduced is a very slow one. This question of the annuity method of repayment, which I think is the best from the farmer's point of view, brings up another point which is dealt with in Sub-section 4, which gives a right to either the approved society or the Commissioners to lend at a net rate of interest. I do not know if every Member of the House realises what a net rate of interest means and what effect it will have. It means that, instead of the interest being a gross figure, from which a varying amount is deducted in respect of Income Tax, the rate charged is such as, after deduction of Income Tax, yields a fixed figure. The equivalent of 5 per cent, gross is with the present rate of Income Tax £3 17s. 6d. net. Therefore, I will assume that if the Public Works Loan Commis- sioners make an advance they will lend the money at 3⅞ per cent. net. The effect on the borrower is that he will get the full advantage of any future fall in the rate of Income Tax. The actual sum required in cash each half-year will be the same throughout the whole period: of the loan and will not vary as the Income Tax varies.

It is true that in the event of a net rate he will not be able to claim a rebate of Income Tax. Many farmers do not know much about reclaiming rebates of Income Tax, but at all events it is a convenience for them that it should be unnecessary to. make such a claim, and that they should be charged only the net rate instead of the gross rate. I will give my reasons for laying stress upon this. If I am right in my assumption that the Public Works Loan Commissioners will lend at the net equivalent of 5 per cent, gross, we get this rather interesting result, that on a 60-year basis, with half-yearly payments, and allowing the quarter per cent, contemplated in the Report for expenses of collection and provision against loss, the half-yearly payment on the annuity principle will be £2 5s. 6¾d. per cent., or £4 11s. l½d. per cent, per annum, which I think is quite a reasonable figure and as low as the agricultural community probably expects. If the Public Works Loan Commissioners were lending at 4¾ percent., which is the current rate for local loans, it would bring the annual payments by the borrower below 4½ per cent. net. It is important that the House should realise this fact, because a good deal of confusion has been created by the fact that the examples of interest taken in the Report of the Cabinet Committee on Agricultural Credit were given in gross figures, and no account was taken of the deduction of Income Tax.

I must apologise to the House for going into these technical matters, but they are very important, and I think it is quite right that the House should understand the approximate amount of cash which the borrower will have to find if these proposals go through. There are many other minor points which will arise when the Treasury regulations are drawn up, and all I have to say in regard to them is that I hope the right hon. Gentleman will take steps to see that the regulations are put into draft now so that after the Bill reaches the Statute Book, there will not be any delay before loan operations can take place. With regard to Clause 2, I do not propose to say anything, because there are many hon. Members who are more qualified to speak on that subject, but I should like to refer to Clause 3 which -deals with an Amendment of the Land Improvement Acts. I think those proposals are liable to diverse interpretations. I have sought the opinion of two eminent lawyers both of whom are experts in dealing with these questions, and each of them with some hesitation gave me an exactly opposite interpretation of this Clause. I have no doubt in my mind that the intention of Clause 3 is two-fold, namely, to add somewhat to the Schedule of Improvements, permitted in the case of settled estates, and to extend to absolute owners the advantage of the full Schedule of Improvements which only limited owners of settled estates now enjoy.

The present position is very strange. The original improvement of Land Act applied to the absolute owner and a limited Schedule of Improvements was included in that Act. Subsequently, a series of Settled Land Acts were passed extending by degrees to the limited owner a much wider Schedule of Improvements to which a charge under these Acts could apply. For instance, a limited owner could borrow and charge his property for such things as domestic water supply and electric light of the Mansion House, whereas in the case of the absolute owner he cannot do anything of the kind. There are similar difficulties in the case of working-class dwellings. I hope it will be made perfectly clear in Committee that the full extension of the Schedules both for absolute owners and limited owners is given, as I firmly believe is the intention. The reason for doubt in the matter of interpretation arises from the fact that Section 65 (1) of the Law of Property Act, 1922, is specifically limited to settled estates.

There is one other minor point which I would like, to raise in connection with the same Clause. I notice that the various Improvement of Land Acts, particularly the Act of 1899, in referring to the previous Acts use an inclusive phrase "improvement of Land Acts, 1864 to 1899." This Clause refers only to the earliest and principal Act, and I should like it to be made quite clear that the effect of that it not to rule out from this Schedule some of the additions that have already been made to the Schedules of Improvements in earlier Acts. I am sure that is not the intention. In conclusion, I should like to recommend the House to give this Bill a Second Reading and to help the Minister, as I am sure he wishes to be helped, to make it as valuable a Measure as possible by reasonable Amendments at a later stage.

I join with the two previous speakers in congratulating the Minister of Agriculture upon the introduction of this useful Bill, and any criticisms I shall make will be of a very friendly character. I cannot help feeling with the previous speakers that the Government might be a little more liberal to the persons who will borrow money under Clause 1 of this Bill. I think the Government might take a little more risk. There is every appearance now that the agricultural land market has been stabilised, and to some extent we know where we are. If this Clause be not widened, it means that a person who during the War period gave £75 per acre for his land— that land to-day is only worth £50 owing to the fall in value which has taken place on that class of land—will only be able to borrow 75 per cent, or £50, and that is £37 10s. per acre. That is only half of what he gave for the land in 1919.

There are three ways in which the Government might extend the scope of this Bill. Instead of lending three-fourths, they might lend four-fifths, or they might extend the period to 80 years. I am sure we are all very delighted to hear from the Minister of Agriculture that as a result of this Bill the period will be extended from 40 to 60 years, which will reduce the original rate of interest and sinking fund, which was £6 8s. 3d., to £5 10s. 7d. Why not go a step further? After all, the land will not run away, and we have allowed local authorities and county councils to purchase land under the Small Holdings Act and to pay for that land over a period of 80 years. The permanent buildings are assessed separately when a county council buys a farm with houses or buildings, and then the Small Holdings Commission decide as to what is the value of the house and buildings, and upon that the Government lend the money for a period of 60 years. With regard to the land, they lend for a period of 80 years, and, if that could be done under this Bill, we should find, instead of the borrower having to pay £5 10s. 7d., it would amount to not more than about £5 3s. 2d. That last 20 years would make a very considerable difference. I have no doubt these points will be discussed in Committee, but I venture to suggest that the Minister would do well to consider either increasing the amount lent from three-fourths to four-fifths or lending it on the land itself for a period of 80 years.

With regard to Clause 2, of course, the working of the Clause will all depend on the attitude of the Minister of Agriculture. The Clause says that the Minister of Agriculture shall take such steps as are practicable to promote the formation and extension of agricultural credit societies. It therefore will depend upon what the Minister considers practicable. There is nothing in the Schedule or in the other Clauses that limits the Minister in any way. He has it entirely in his own hands to spread these agricultural credit societies up and down the country. I am sure that those of us who represent agricultural constituencies, and who have had some experience in these matters, will be glad to give him all the assistance we possibly can. I have been president and treasurer of two of these agricultural credit societies for a period extending over 20 years, and I must Confess that after that experience I can appreciate the difficulties which the Minister will have to face. To start with, of course, he has to get a number of smallholders, such as I have in Lincolnshire—60 of them farming about 1,000 acres of land—to form the credit society. I was able to put some little pressure on them in my case, for I said to these men that I would not accept them as tenants unless they joined the credit society and subscribed for shares up to one-half the amount of their year's rent. If the rent was £10 they had to go on subscribing until they had £5 in the credit society. By that means I got the whole of the tenants into the society.

The difficulty arose, not in getting the money together, but in getting the men to borrow the money when one has got it, because under the rules of the society the members who took shares elected a committee of management, and any of them who wanted to borrow money, say for the purchase of a cow or the purchase of seeds or manure, had to go before the committee and state their case. If the committee agreed, then the money was advanced. I do not say I could not get them to do this, but I got only a limited number, and as these men became more established in their holdings I found that they used the credit society less and less. The only way in which the Minister of Agriculture can really carry out the object of the Bill is to employ the Small Holdings Commissioners. I am speaking more about small holdings than about credit societies for large farmers, because I think they will possibly advance more and more as regards co-operation. The Small Holdings Commissioners have an area in their regime; they have assistants, and on them I think should be placed the responsibility for starting the credit societies. I see my hon. Friend who has been such a pioneer of the Agricultural Organisation Society is present to-day. He and his colleagues have done a great deal by sending men over the country to preach the principle of co-operation. Still these credit societies have not taken on very well at the present time, because there is no one man in charge who will lead these people during the first two or three years of their existence. The Commissioners will have to pay the salary of a man to do that in the initial stages of the society.

The second credit society with which I am connected is in Norfolk, and it has been a great deal more successful because the secretary of the society is a local tradesman who has interested himself in the men and devoted many hours-without fee or reward to the promotion of the society. He has made it a much greater success than the one in Lincoln-shire of which I have already spoken. When this Bill becomes law, the Minister of Agriculture must realise the necessity of appointing the right sort of men and of spending money to promote the formation of credit societies up and down the country. I trust the Minister may be able to do that, and, as I said, any assistance which those of us who represent agricultural societies can give, it will be our duty to give. I trust the Bill will have a very speedy passage through-this House.

In rising to address this House for the first time, I ask that indulgence which I feel is already accorded to me in advance. I represent an agricultural constituency, which is grateful to the Government for its good intentions and will be considerably more grateful to it when those good intentions have been advanced a little in practice. In making a few observations on this Bill I hope—although it is generally considered ungracious to look a gift horse in the mouth—I may be permitted to do so. I do it partly because, as a. practical man, I am not acquainted with any other way of telling its age, and partly also because, when I return to my constituency, I shall be asked to explain in simple language what benefit this Bill is going to confer on agriculture. I have read the Bill very carefully, and I confess I shall find some difficulty in putting in simple language the benefits it is going to confer on agriculture. I welcome it principally because it is the framework of a Bill which embodies certain principles which I think are of great importance to our future agricultural policy.

The hon. Member for Holland with Boston (Mr. Royce) who followed the Minister said he welcomed this Bill because it embodied the principle of land nationalisation. I welcome it on rather different grounds. I welcome it because I think it embodiess a very good old Conservative principle, that of establishing occupying owners on the land instead of establishing men on the land as tenants either of the State or of the county council. That is a good Conservative principle, and I welcome the Bill because it embodies that principle. Secondly, I welcome it because it gives some recognition of agricultural cooperation and it gives that recognition in the right way. The right hon. Gentleman said that co-operation consisted of self-help and mutual trust, and that it cannot be imposed from above. But under this Bill an opportunity is given for agricultural credit societies to spring up and assist the agricultural co-operative movement genially, by acting from below with a little, though, I must confess, very little, assistance from the Government. I only hope that that assistance will be increased in the future.

Apart from the principle, when one looks at the Bill, it is really rather difficult to see what advantage is going to be gained except by regarding it as a first step in agricultural policy based on credit and co-operation. Those Members of this House who read the letters of Mr. Page, late American Ambassador in this country, may remember that, before he was made Ambassador, and at the time Mr. Woodrow Wilson was first elected President of the United States, Mr. Page wrote to Mr. Wilson some extremely interesting letters on agriculture in the United States, with particular reference to agricultural, credit, and he ended up by saying, "All these things cost money." Seven or eight of the letters ended in the same way by saying that "all this costs money." I know our Government is in financial straits, but it seems to think that advantages can be conferred on agriculture without spending money and that, by merely advancing money in the same way as it would be advanced for any other purpose, at a commercial rate, it thinks by these means it is going to help the agricultural community.

I feel sure the Minister of Agriculture in his researches in Devon and Somerset has come across a bird particularly well known in agricultural districts and, I believe, often heard in London—I refer to the cuckoo. This bird has several characteristics, of one or two of which I may, perhaps, be allowed to remind the House In the first place, it lays its eggs in some other bird's nest, and having done it, it is quite careless as to what happens to the eggs. I hope I may not be considered disrespectful if I suggest that the Minister is acting somewhat on that principle. He is planting one egg in the Farmers' Land Purchase Company's nest, and the other egg in a series of nests, and he does not seem to ascertain whether or not they are in existence. The fact is that until the hon. Gentleman who has just sat down had spoken, I was unaware that there were actually any co-operative credit societies in existence. Following further the habits of this bird, the Minister, by not only being indifferent as to the nest in which he lays his eggs— [ A laugh ]—I feel sure that in entering upon this rather complicated metaphor, the House will understand that one is apt not to remember differences of sex. The point I am trying to make is that the Minister, not personally, but as representing an institution in this country, is not only rather indifferent to the fate of his offspring, but is not even very sure that the egg is being deposited where there actually is a nest. What I was trying to impress upon him, if I might do so in all seriousness, is that one of the most essential things in connection with short-term credit is to make quite certain that there is a nest, and to provide means by which nests may be built.

In one of the letters of Mr. Page, to which I have referred, he says that group borrowing develops the men as much as they themselves develop the soil they are cultivating, and I think that if the Minister will, in his regulations, make sufficient provision for the organisation of credit societies, which means money, and if the Treasury can be induced to provide the money, it will be of very great assistance in enabling British agriculture to develop itself by means of this group borrowing. I cannot for the moment see that this Bill is of any very great assistance in that regard. The Government are merely lending, at a commercial rate of interest, money that has got to be lent. The Public Works Loan Commissioners have a certain amount of money to put up. They are going to put some of it out to approved societies to assist people who purchased their farms during a very limited period. They are going to put up more of it to enable co-operative societies to be formed, who also are going to borrow money at a commercial rate of interest. The Government in neither case are taking any risk of any description; the risk is all to be borne by the societies which work the Government's scheme. I would appeal to the Minister to be—not in his own person, but as the representative of the Government—a little more generous towards these societies and towards the men whom, I know, he is anxious to help. As the last speaker said, I am sure that all those Members of the House who have the interests of agriculture at heart will do their very best to make this Bill a success, and I can say for myself, if I may be allowed to do so, that I shall be only too glad to do anything I can in my own small way to help the Minister to carry out its provisions.

I think the House may congratulate itself as well as the hon. Member who has just made his maiden speech, These Debates are apt to be dull, and I think the hon. Member has introduced the right spirit into an agricultural Debate. From my point of view, it was very much the right spirit and the right ideas that he introduced into this Debate. I think he made it clear to the House, perhaps for the first time this afternoon, what a pettifogging, petty little Measure this is that we are being asked to adopt, and for which we are supposed to be grateful to the Government. The mountain has been in labour, and here is the little mouse. I realise completely the strategy and tactics and statesmanship of the hon. and gallant Member for Rye (Lieut.-Colonel Courthope). He knows quite well that this Bill does not go very far, but, like other Members of the House, he sees it as a medium, for extending the demands upon the Treasury; and I regret very much that we have not here to-day any representative of the Treasury, because these agricultural Debates are rather apt to turn themselves into a general raid upon the taxpayer's pocket. When I look upon this Bill, I ask myself, why was I not born in the agricultural interest instead of in pots? I face the serried ranks of agriculture, but where is sound business? After all, agriculture did Suffer from a slump after the War. Prices came down —the prices of land came down, the prices of stock came down, and rents have come down a little bit, too. But compare the loss in agriculture with the loss in other industries. Why are we not debating now the question of special assistance to the cotton trade, or to the coal trade, or to the pottery trade? Simply because it is traditional in this House that the agricultural industry has only to come forward and beg and it is to get its way whatever Government is in power. Fortunately, they have not got very far in this Bill. They have started their raid, but it has not gone very well.

The principal feature of the Bill is to assist those farmers who bought their farms while they were still believing that the late Government really meant to keep its word to agriculture and make permanent its support of prices. Even this Government, concerned as it was to some extent in the varied and disastrous career of the late Government, feels that it owes something to those people who built upon the promises of the late Government, upon the Bills of the late Government, upon the solemn Acts of this House, in buying land when they would have been much wiser to wait until that land had dropped in value. So we have this Bill to assist them. I wonder how many of the farmers who bought land in those circumstances will be really grateful to the Government? They are at present indebted to the bank, and they are told that this Government will graciously support certain statutory companies, and that those companies may, if their managers approve, lend them money on their farms up to three-fourths of the present value—not the old value— and charge them £5 6s. 8d. per cent, on the money. I do not think you will get very much gratitude from them. You may get gratitude from the bankers of the country. You may find there that this Bill is ably and amply supported. Wherever a banker has advanced more money than he cares to think of to any of these farmers, he will press that farmer to take up one of these new Government mortgages instead of the current account overdraft upon which he is at present subsisting. They will be able to unload a certain amount of unsatisfactory business upon the national shoulders.

I do not think, however, that the farmer who is making headway, who is paying off his mortgage or overdraft, will be very anxious to change his present form of indebtedness for this form of indebtedness. I observe, however, that the original Report of the Chambers Committee, in which 40 years was recommended, has now been extended to 60 years, and the original recommendation of that Committee that there should be a ½ per cent, margin for expenses has been cut down to ¼ per cent. That is all right so long as it is the statutory company that faces the risk, but I was not quite clear from the speech of the right hon. Gentleman, and I am not clear from a study of the Bill, whether the risk in all these cases does fall upon the statutory company or upon the Exchequer. In case of default, or in case of a farm sold on forced sale and not fetching the 75 per cent, margin, will the loss then fall upon the company or upon the Exchequer? And if it falls upon the Exchequer, what sort of check have we upon the loans made by the statutory company? Will they not, if they do not stand the loss, be prepared to take a much more risky class of business than it would be wise to take on if they themselves were to be held financially responsible?

The first part of this Bill, dealing with long-term credit, simply enables a certain selected few farmers, who have during a certain definite period bought land and who wish to borrow money, to borrow that money at, I think, £5 10s. 7d. per cent. If the agricultural interests are going to be very grateful for that, I shall be surprised. The second part of the Bill deals with agricultural co-operative credit societies. There, as the Report rightly says, everything is going to depend upon propaganda, and who is going to pay for that propaganda? I am a great believer in co-operation. I think that in co-operation, combined with a drop in rents and a drop in land values, we have the real possibility of getting over the present agricultural depression. It does seem to me, however, to be extraordinarily difficult to teach co-operation to the British farmer. They are so jealous of each other, so secretive, that you are starting on a most difficult task if you are hoping to teach them the virtues of co-operation. I think that much more can be done in regard to co-operation with the smallholder or the allotment holder. The big farmer is able to market his produce individually; he is able to get credit on his crops or on his farm, if he happens to be an owner, or on his good name, and there is no such compulsion upon him to co-operate as there is upon the smallholder or the allotment holder.

I hope that, if there is going to be a raging, tearing propaganda in favour of these co-operative credit societies, particular attention will be paid to the small man—to the allotment holder, the small-holder, and the agricultural labourer as well. If you are going to get them really interested, you must see that there are benefits which they can get. The scheme at present depends upon the Government putting up £1 for every 5s. put up by the member in the locality, subject, of course, to a 15s. call in case of default, in case the society goes bankrupt. It will be a disaster if these societies are confined to the big men, and it will be a disaster, too, unless you get public-spirited people—the squire or the parson if you like—on these boards, who will really see that the credit is given in the proper degree to the small agricultural labourer who wants to set up for himself. If the societies are left in the hands of the big farmers, it is inevitable that they will look at the matter from the big farmer's point of view, and that is not a point of view which is generally helpful to the agricultural labourer.

I believe that if these societies were used as the first rung in the ladder of becoming independent, you would be doing a really good thing for the countryside. Unfortunately, however, independence is the last thing that is desired for the agricultural labourer by the farmer. He does not want him to be independent; he wants him to be as dependent upon his job as possible. I think that along these lines something might be done, particularly if you can combine this scheme in future, when you have got these agricultural credit societies on their legs, with a housing scheme somewhat on the lines of what has been carried out in Ireland, where the agricultural labourers have houses and small-holdings of from half an acre up to three acres for themselves. What we have to watch, however, on this side, is that the benefits of these agricultural credit societies shall not be absorbed solely by the big farmers, and that they shall not simply result in a particular clique managing a particular society and giving credit up to the limit to their own friends on the managing body. What you have to do is to broaden the society as far as possible, to introduce the labouring element into the management, and to see, if possible, that at the head of the society is a selected man of public spirit who understands that the object of the society is to get the labourer on his legs, to make him independent, and establish an independent peasantry in the country.

There is one other word that I should like to say about this Bill. The hon. and gallant Member for Rye and the hon. Member for South-West Norfolk (Sir E. Winfrey) have suggested that this Bill should be extended in two ways. In the first place, they suggest that the margin might be extended from 75 per cent, to 80 per cent, on the present value of the farm, and they also suggest that the rate of interest should be reduced. I beg the House, if they are going into experiments of this sort, to go into them with an idea of keeping them sound in their finance. The idea of subsidising one industry on unsound lines is all very well for that particular industry, but the smile goes on the other side of your face when some other industry, like the coal industry, comes forward and asks for a mere trifle of £12,000,000 a year, or when any other industry comes along and says, "It is our turn." We do not want to support uneconomic assistance to any industry in this country. Therefore, let us get our scheme on sound lines so far as the advancing of money is concerned.

6.0 P.M.

The other extension which was asked for by the hon. Member for Rye is also rather dangerous. He says, "If it is a good scheme to assist these farmers who bought between 1917 and 1921, why should we not wipe out the lower limit and make it a permanent feature of our State system that any farmer who buys his land now, just as any farmer after 1917 in the statutory interval, should be able to secure a loan through the assistance of the State on cheaper terms than he can do if he goes to his banker or to his solicitor. The objection is that that does not help the farmer or the farming industry in the least. The only person it helps is the man who is anxious to sell his land. If a purchaser comes forward and says, "I have this Act of Parliament of the Tory Government behind me and if I buy my land I can finance, the proposition on cheaper terms than I could before," it does not mean that he is helped, but that the man who is selling the farm to him is able to get from him a bigger price than he otherwise would. That does not help industry. If you confine this to the halcyon period when agriculture believed it was going to get £70,000,000 from the pockets of the taxpayers to keep up the price of wheat and oats you are certainly helping those farmers who are going to make use of this Act. If you extend it indefinitely and take away the 1921 limit and allow farmers for all time to get this special assistance, those farmers in the long run will not benefit by this Act in the least. The benefit will go, as usual, into the pockets of the landlords, whose appetite is insatiable and whose reluctance to pay any sort of tax, whether it be Schedule A or anything else, is becoming more marked from year to year.

I only desire to speak on the first part of the Bill. I agree that it is a tardy reparation for the original injury which was done to a considerable number of deserving people The one material factor on which really these purchases of land were made was that in the Agriculture Act there was a provision that the guarantee of corn prices which had been decided on by the House of Commons should not be put an end to except after four years' notice, and prior to the introduction of that Act the highest politician in the land gave a promise that corn production should be increased, that guaranteed prices should be given, and that therefore the industry of producing corn should be a prosperous one. On the faith of that written contract, which an Act of Parliament is, 13,000 to 15,000 men bought their land at very high prices. The House of Commons, after six months, deliberately put an end to that representation that they had made, and therefore it is only common justice that the House should do what it can to remedy the awkward plight in which these men find themselves. While I agree with the hon. and gallant Gentleman who has just sat down that this ought to be financially a sound Measure, I think in this reparation that the House is now tardily trying to make to this class of people they should have their money at the lowest possible rate that is compatible with economic soundness.

I am not quite satisfied as to how the finance of the Measure is going to work. The framework of it is that the Treasury shall advance money to approved associations, and the approved associations shall in their turn advance money to these farmers to a particular amount at a rate of interest to be approved by the Treasury. We have been told by the Minister that the farmer or occupying owner who avails himself of this Measure will get his money at £5 10s. 7d. per cent., a sum which he would have to pay for 60 years—5 per cent, for interest, 5s. for expenses, and 5s. 7d. for sinking fund. I take it that is the rate that is going to be paid by the farmer to the approved association. Does this mean that the approved association is compelled to advance the money at 5 per cent., and is the only profit it is going to get the 5s. per cent, for administration? If this is so, where is the provision for the expense of the valuation to arrive at the 75 per cent. —possibly 80 per cent, as I hope it may be—and what about the legal expenses and the mortgage? If this is so, what rate of interest is the Treasury going to charge to the approved association or statutory company? Is it going to charge them 5 per cent, or less, and if 5 per cent., why should it not be done at considerably less unless they are going to charge 5 per cent, and borrow at 4½ per cent.? The approved association of which my hon. and gallant Friend the Member for Eye is either chairman or a high official could raise to-day in London the £20,000,000 which will have to be raised under this Bill at 4½ per cent, at 102, which would cover all expenses.

If so, is he going to have to pay 5 per cent, to the Local Loans Commissioners, and, if so, why? And if he is to pay 5 per cent, to them, where does his profit come in in lending the money, and where is the provision for any leakage or loss that there may be? Why should not the money be raised at 4½ per cent, by a special loan at such a rate as would give this approved association the necessary profit after making provision for expenses. If that were done I feel certain there would be at least a saving of 5s. per cent, in the reduction of the rate which is to be charged to the farmer. If we could get this to £5 5s., or something of that kind, it would be a very considerable advantage to this particular class, because it has to be borne in mind that out of every £5 5s., or whatever the fixed payment is, there is a certain proportion which is repayment of the principal. They are repaying the principal on the annuity system. A small part of it only is repayment at the beginning, and the bulk of it is repayment at the end of the period of 60 years. Hardly any of these farmers can borrow money at £5 5s. without any repayment of principal at all at present and by having a loan made to them which cannot be called in at any unexpected time at such a rate of interest we are conferring on them a very substantial benefit indeed. I should like to ask the Minister whether he will take care that in the mortgages which are made there is full provision for repayment by the borrower at any moment he pleases, after such notice as has to be given, bearing in mind that if the repayment is made by a fixed annuity it is an extremely difficult calculation to make—unless it is made beforehand for the full period—at any particular time, what is the amount owing, say, after 13, 14 or 15 years. There is this drawback to a loan for 60 years, that you are saddling the land with it and you are to that extent making it less saleable. With these observations, I commend this part of the Bill as of great advantage to the persons concerned, and I shall certainly do what I can to assist in carrying it into law.

I rise for the purpose of ascertaining what really is the scope of the first part of the Bill. It is not limited to farmers who have bought and are occupying their farms. The Minister of Agriculture based his whole statement on the assumption that it was so limited, but, as I read it, it would be quite open under the Bill to lend money to someone who wished to buy an estate so long as it was agricultural land. That, I am sure, is not the purpose. I should like to know whether the intention is as I have stated, and if the right hon. gentleman will look into the Bill and see that it is really limited to that. My second point is this. Having some knowledge for some years of the class of people who have been compelled during that period in question to buy their farms, I am bound to say that I agree with the view that this Bill is not going to do anything substantial to help them. In consequence of the prospects held out by guaranteed prices, the owners of many estates thought it was a favourable opportunity to compel their tenants to buy their farms. I have been a farmer for a great many years. Practically everyone of my neighbours were told that they must either buy their farms or quit. They would have been very much wiser if they had done as I did. I refused to buy when I was asked, and I quitted. These people were in a different position from that in which I was placed. They were people who were farmers alone and were depending upon their farms for their livelihood, for their house, and for the means of providing for their families.

We have been told so often and we are told in one great agricultural division that we can rely upon the fair treatment which always characterises the relations between landlords and tenants. I admit that there are many highly honourable examples, not only in England but in Scotland, of men who would decline during a period of War to take advantage and to turn out their tenants; but there were others who acted differently and turned out their tenants. I cannot speak too strongly of the blame that attaches to the Government which made it possible for that to be done. It is one of the least reputable things in the annals of this House that during the period of War, when appeals were made to everyone, this House deliberately, under the Coalition Govrnment, left it open to landlords to deal with their tenants in the way I have described. It was not an oversight. When the first Act of 1917 was under consideration, I pointed out the dangers to which tenants would be exposed, and something in the nature of a promise was given by the late Prime Minister that they would be protected. But that promise was of no value. The Act was passed, and not one of the tenants who were turned out got the slightest protection. When the Act of 1920 was introduced, a solemn undertaking was given that tenants would have absolute security of tenure. The Act was passed in December, and within a month or two it was revoked. In the interval between the time when the promise was made and the revocation of the Act there had been wholesale selling of farms, at least in the neighbourhood with which 1 am familiar. A great wrong has been done, and a wrong which cannot be remedied, and certainly will not be remedied, by a Measure such as this.

What was the difficulty which was created in the case of these farmers? They were not wealthy. They were able to live and to pay their rent, but they had no capital resources, and when they had either to buy their farm or leave their home at a time when there was no other farm to be got, they had to borrow from the bank, to borrow from their friends, or to raise money in other ways, and to use their little working capital—the very worst preparation for facing the bad time that was coming. When the slump came and values went down, the value of land in some places went down by 50 per cent. I am willing to take it that, speaking generally, 30 per cent, is the figure. In the meantime they borrowed to an extent that made the loans insecure. Their working capital was gone in paying for the price of the land, and they were left to face all the troubles which have come upon them during the past few years bereft of their working capital. The working capital required for a farm to-day is a very serious matter, as everyone who has tried ft must know.

What sort of remedy is it for the situation I have described, to say that you are going to relieve the bond holder, or the mortgagee as he is called in England, from anxiety in regard to his loan, and that you are going to take it over? The farmer is left to pay the interest upon the full amount of the loan, and in addition he has to pay a contribution towards the sinking fund. Excepting that he is freed to a certain extent from the risk of having his loan called up, so long as he is able to pay the interest upon it, I do not see that the financial position of the farmer, as a matter of business, is any better. I do not suppose that the association is going to be more merciful than the ordinary lender of the money from whom be borrowed. There is another trouble, which is going to be a very great one. Take the case of the farmer who has a family and has bought his farm. What will happen when he dies? His family will be faced with a farm which has a heavy burden upon it, and which the successor cannot repay. How is the division of the estate money to the family to take place? There will be many an anxious home. The farmer will have to select someone who is to succeed him in the farm, and if he chooses one son, the brothers and sisters will make constant demands upon that son for payment of their share.

Taking the position, first and last, I think the position in which these people have been placed is a very unfortunate one for the people themselves, for the industry, and for agriculture. I do not see how this House can possibly relieve the people who have lent the money. Take the case of the landlord who has to a large extent advanced the money in order to enable the tenants to purchase. Are we going to grant public money to pay to people who, in that case, are really the persons responsible for the evil that has come abount? That does not seem to be sound policy from the point of view of what we desire to do or from the point of view of encouraging people in conduct of that kind. If I am asked what I would do to meet the case, I confess that I am perplexed. I see no way in which you can adequately provide for these people. If we were to follow some of the precedents which have been set in this House in some cases, we should be doing substantial justice, although it might be retrospective legislation, by asking the landlords to repay to the tenants the excessive amounts which they had paid to them. That might be done, but I do not suggest it, because in another case which came before the House recently I was opposed to going back in transactions of that kind. It is better when you have made a mistake in legislation to stand by the law as it is until you can rectify it in some other way.

My real purpose is to protest against the idea that this Bill is anything like adequate, either as repentance as an expression of regret or as a reimbursement of these people for the losses they have suffered. Equally, it is absurd to suppose that, having created a situation like this, you can restore the industry of agriculture insofar as it has been destroyed by any provision of this kind.

The House has listened with much interest to the somewhat gloomy speech which we have just heard from the hon. Member. Into the considerations of the past I do not propose to go. The question we have before us to-day is not whether this is a whole loaf or a half loaf or a quarter of a loaf, but whether we would rather have whatever proportion of the loaf it may be than no bread. Looking upon the Bill broadly, it is one that the House should welcome. It is not a very big measure of relief, either in relation to the long-term credit or the short and intermediate credit, but so far as they go the proposals are good, or they are capable by certain amendments in Committee of being made good.

I should like to join in congratulating the hon. Member for the Ormskirk Division of Lancashire (Mr. Blundell) on the interesting maiden speech which h" made in a vein which the House appreciates. The cuckoo to which he referred is a bird which we are all glad to hear when it sings for the first time, and we were glad to hear the hon. Member for the Ormskirk Division for the first time. The hon. Member for the Newcastle-under-Lyme Division (Colonel Wedgwood), whom we equally like to hear, but with whom we do not all equally agree, raised, as he always does whenever any agricultural debate is before the House, the relation of town and country, and he put forward the charge that the town is asked to pay for the country. It is right that the relations between town and country should always be remembered, and I say to all those hon. Members who are not directly interested in the country that it is just as much in the interest of the town that the country should be prosperous and healthy as that the town should be looked after. So too it is equally in the interest of the town worker as of the agricultural worker that the agricultural industry should be able to afford a decent remuneration to the agricultural worker, and that we should not have unemployment in the country side, which means men migrating into the towns in search of work and competing at low wages with the town workers. If members of the Labour party would remember that in trying to help agriculture we are trying to produce a healthy, prosperous and contented countryside, and that we are trying to help the town worker, they would criticise a little less those members of whom they are often cynically disposed to speak as the landlords and the rich farmers, who are supposed to sit on these benches and not on the benches opposite.

The Bill deals with the two departments of credit which in a sense are one subject. I am not a farmer and have no right to speak as an expert on farming, but I have had a great deal to do with farmers and believe that I know something of the conditions of their industry, and I assert that broadly speaking the industry of farming, both on the farming side and on the commercial side, is undercapitalised, and that it would be better if more capital were available both for farming operations proper and for the commercial operations on which the income of the farmer must depend. The real need of a State scheme of credit lies in this fact, that farming as a whole needs more working capital in this country than it has to-day. I propose only to deal with the latter part of the Bill which refers to short term and inter- mediate term credit. I have had much more to do with that than with the other, and if the hon. Member for Forfar (Mr. Falconer) will forgive me for not answering his speech I propose to deal with the latter part.

It is extremely important in that part of the scheme to bear in mind that farmers are very conservative in mind and slow in taking up new schemes and new ideas, and they resent intensely any inquisitorial scrutiny of their private affairs. Proposals such as these for short-term credit are new in their character, and necessarily raise in the minds of the farmer slight alarm lest the administration of the scheme should result in his neighbours having a finger, so to speak, in the statistics of his own business. Therefore we should bear in mind that there is a risk of these short-term credit proposals, even if they were more attractive in themselves than I think they are likely to prove to the farmer, falling flat. And if it be the fact, as I think it is, that they are not very attractive, though I think they are good, and particularly good as a first instalment, then we should realise that in order to get the scheme working an intensive propaganda campaign on the lines indicated by an hon. Member who has spoken is essential. [HON. MEMBERS: "Who is to pay?"] The State out of the money provided by the scheme. I suggest that that particular part will be the most remunerative part of the, expenditure that will have to be incurred in connection with the scheme.

A sound credit system in agriculture has been found necessary I believe in most agricultural countries, and we have not had one in this country. In saying that I do not for a moment want to fail in appreciation of the services rendered to agriculture by the merchants on the one hand and the banks on the other. A very large amount of money is to-day on loan to farmers from the banks—between £40,000,000 and £50,000,000—yet over and above that you do want a credit scheme, so to speak, to fertilise the industry with working capital, on lines which it is not the part either of the trader, who is looking only after his own trade operations, or of the bank, which is looking after its own banking operations, to do. For those reasons I submit to hon. Members opposite who do not always agree with us that this is a Measure which may be treated as one essentially non-party in character.

I recognise that there will be great difficulty in dealing with the propaganda campaign, on which I will say a few words later, but let us assume, in the first instance, that the propaganda to get the thing started succeed. What then are the conditions of the successful working of the short term credit scheme? I think that they are five. First, a low rate of interest for the borrower. Farmers are not going into the scheme unless they get money at a low rate of interest. Second, no unnecessary inquisition into his private affairs—I say unnecessary—and no publicity about his borrowing. Third, no security must be demanded. The Bill recognises that. It is futile to ask farmers to put down security for credit of this kind. They can get credit from the banks if they have got the security. Fourth, the machinery for getting the loan from the society must be simple, as simple as going to a bank manager for an overdraft. Fifth, the loan in itself must be big enough for the purpose for which it is wanted and long enough in its term for the same reason. The last observation applies particularly to intermediate credit,—the kind of credit that is wanted, for instance, where the fertility of a farm has gone down and it badly needs general liming, the results of which would only inure to the benefit of the farmer after a term of years, or for improvements of one sort or another.

Those five conditions are essential if the scheme is to serve the purpose which the farmer has in mind. Then there are two considerations which the State has to bear in mind. Public money must not be wasted by careless and improvident lending. There must be both a wise selection of the borrower and a wise administration of the credit society. The management must be efficient and the supervision must be adequate and sufficiently frequent. The other consideration which should be borne in mind by the Government is this. The object of any scheme of State assistance of this kind is that it should become in the end self-supporting and independent of Government control, and a natural part of the whole organism of the industry. If these be the con- siderations germane to the Bill to what extent does the Bill satisfy them? First of all the rate of interest is left to Treasury Regulations. That is true equally of other points. There is nothing in this Bill about the machinery for carrying out its objects. All is left to the Treasury and the Ministry who will make subsequent Regulations. I do not complain of that, as in the case of ordinary legislation in this House I should complain of it,—and should complain because I think that the House as a rule is the place where the real purport of a Measure should be defined, rather than that we should have what is equivalent to legislation by a Department. But I recognise here that the needs are such that great elasticity must be preserved, and it is exceedingly difficult to define in advance the precise steps that are to be taken. I submit that that is an adequate answer to what otherwise would be sound criticism.

Again, there is nothing as to the size or length of the loan, except two limitations, which are perhaps open to consideration and criticism. The size of the loan is defined in Part II of the Schedule, paragraph 5, in this way. The advance may be up to a maximum of one-tenth of the share capital of the society for the time being issued, or a maximum of £5 for every £l share held by the member on which he has paid five shillings. That is 20 times the amount of money which he has put in. I suggest for the consideration of the Minister in Committee whether the first of those two limitations would not be enough, provided—and I think it essential—that there should be sufficiently continuous supervision by means of inspection of books and auditing of the society's accounts. If that be done, I suggest that it is not necessary to add the limiting factor of 20 times the amount of the capital paid up on his shares. As regards the length of the loan there is a provision which I think is inconsistent with the use of the scheme for some purposes of intermediate credit. In Clause 2, Sub-section (2), there is the provision that the Minister at any time within three years after the passing of the Act may make advances to any such sooiety, subject to Treasury regulations. I am not sure how far that limitation of the advance being made within three years, and only within three years, would affect the question of payment of subsequent instalments of loans for continuous purposes in connection with the farm. That is a matter for consideration, but the broad question to which I wish to draw attention is that in Committee the Minister should give us a substantial amount of information as to the way in which the Ministry and the Treasury propose to carry out the scheme. The Treasury control under the Bill is autocratic. Clause 2, sub-section (6) says that payment out of the Agricultural Credits Account shall be made and regulated in such a manner as the Treasury may direct, and I am not sure that having regard to that autocratic control whether the provision as to the limit of three years in Sub-section (2) might not properly be omitted. It is true from one point of view that that is a Committee point, but it is of the essence in my judgment, for Second Reading purposes, that the House should preserve a reasonable elasticity in the administration of the scheme so that loans can be made to suit the varied conditions of the industry. Another provision of importance besides that contained in the Clause which I have read from the Schedule as to the limitation of advances, is the provision in the Clause itself that the Government will advance pound for pound of the share capital paid up, so that, when the Government takes up a £l share against a £1 share held by a private member and that private member has an outstanding liability of 15s. the Government gets a substantial amount of security.

I agree. The point is that really it is a modified form of mutually guaranteed credit, a form of the Raiffeisen system, which has never "taken on" in this country. That is the chief reason why credit societies have failed. The attempt was made to found them on the principle of every member of the society being liable for the liability of each. That British farmers do not like. In so far as the Bill contains an ingredient of that type, I think it is one that will bring difficulties. I do not see how you can eliminate it, but I want the Ministry to realise that that will be a definite ground of objection from the farmers.

Those are the main features of the Bill. Now I want to make one or two suggestions to the House as to the way in which we can help to make the scheme work. If the Treasury wanted—I do not think they do—to make the scheme a fiasco, they could very easily do it through the rate of interest. They have only to say, "We estimate the possibility of bad debts at so much, the cost of management at so much, and the risk of ultimate loss at so much, and we must have a rate of interest which will protect us." That would ruin the scheme. I go further. I believe that in the first year or two of the working of the scheme the only way to make it a real success will be for the Treasury to be content with something below the economic rate of interest. We ought to face that fact. The low rate of interest would be necessary, not as a permanence but for the purpose of getting the thing started, and as an attraction. [HON. MEMBEBS: "To the landlords."] It has nothing whatever to do with the landlord. In my view this Bill will inure more for the benefit of the very small man than for the benefit of the others. It may be that it will not affect the big man at all, and certainly it will not affect the landlord—not the short term credit, I agree that it ought to help the big man as well as the small, and I hope that in course of time it may be utilised so as to do so.

In regard to working expenses I want the House to follow me for a moment on what I regard as an exceedingly important aspect of the question. In order to keep the rate of interest low, working expenses must be kept down. Working expenses of a society of this kind involve two or three things. They involve, first of all, the rate of interest paid; secondly, the cost of management and staff; and, thirdly, the cost of the office. Those are all heavy items. Management and office would be absolutely prohibitive if the proposal of the Departmental Committee, of district areas, had been adopted. On the one hand you would never have got efficient management, or, on the other hand, working expenses so low as to make the scheme possible at all. Bad debts are an important question and an item which will be either high or low according to the method of administration and management. Anyhow, it is imperative to reduce the working expenses of the scheme to an absolute minimum. The scheme will not work unless you can get management and office and most of the staff work for nothing. If you introduce any substantial expenditure under these heads you are bound to make an annual loss.

After all, what is a credit society? In a sense it is a banking business. Out of what do banks make profit? Out of the difference between the rate paid for the money borrowed, and the rate paid for money lent. It is the same with a credit society. If a society is to keep solvent it is vital that it should be able to lend to the farmer at a rate that he can afford to pay, and on the other hand at a rate which will leave the society a margin of gross profit over and above the rate paid to the Government for the money. On the share capital they will have to pay 5 per cent, interest, in order to get private individuals or societies to take shares in the credit society. They must have enough for that interest. They must have enough for postages and a set of books, and for some clerical assistance. Taking these things into account, the small margin between the rate at which the Government lends and the rate at which the farmer or allotment holder borrows, the working expenses must be reduced to a minimum. How is that to be done? I have an offer to make to the Government, and I hope they will consider it. I had the privilege for many years, until I was Solicitor-General, of being chairman of the agricultural co-operative movement in this country. In that capacity I had ample opportunities of watching the movement and of knowing its weakness and its strength. At present the position of the movement is that great progress has been made, and I think it is relevant to the offer I make that I should state the figures to the House.

The offer is this: That the agricultural trading societies, the co-operative trading societies, should, in those districts where there is a good trading society, lend their office free of cost, and their management free of charge, and do the work of the credit society so far as possible with their own staff and speak only of those districts where there is a society which meets with the approval of the Minister. I do not mind how rigorous the tests may be which the Ministry applies before approval is given. I think it is right that the tests should be rigorous. I cannot speak in the sense of making an offer with previous authority, but as a person who has some influence in that movement I will do my best, as will those working with me—for instance, Mr. F. D. Acland, who for many years was, and though I am a Conservative and he a Liberal, I hope will again soon be, a Member of this House. He is the present chairman of the movement, and there is in it a large number of very influential farmers. I believe they will stand by my offer. The proposal is that so far as possible these societies should be roped in to help, so to speak, free of charge, at any rate free of everything except actual out-of-pocket expenses. Let us consider what is the position of the co-operative movement in this country. I speak now of England only. In 1901 there were 33 societies, with a membership of 500 and a turnover of under £9,000.

On a point of Order. Have we not been listening for more than half an hour to Committee points rather than Second Reading principles?

I am afraid that I could not assume the task of discriminating in the matter.

I regret than any hon. Member should have thought that these were Committee points, for they have a very direct bearing on the general principle. In 1915 there were over 500 societies, with a membership of over 50,000, and a turnover of more than £3,000,000. Between 1915 and 1921 the number of societies rose to nearly 1,500, with a membership of nearly 150,000 and a total turnover of £16,000,000. Out of those societies, ordinary trading societies and dairy societies, there were 71 societies with a turnover of over £50,000 a year, of which 17 have a turnover of over £200,000 a year. One has a turnover of nearly £1,500,000. Those societies are. at work to-day in almost every county of England. I do not say that they are all perfect. I do say that most of them are insufficiently capitalised. I do not say that they are all perfectly managed. I do say that most of them are well managed. Speaking broadly and with knowledge, I assert that they could do this particular task of starting credit societies and running them efficiently in most counties of the country.

Of course, it would be a necessary condition that they should not in any way discriminate against farmers who were not members of co-operative societies. That could be achieved quite easily. There must be perfect equality. So far as these societies exist the right thing to do is to utilise them, because it is only by that kind of economy that the scheme can be made to work at all. I do not want to go into details or to give quotations, but I want to remind the House that the Agricultural Policy Sub-committee of the Reconstruction Committee, presided over by Lord Selborne in 1917, a committee of men with great knowledge of farming conditions, reported unanimously in favour of a credit scheme on. larger and more generous lines than the present, though similar in character, being worked directly exclusively through the Agricultural Co-operative Trading Societies. I was interested to note that Lord Selborne, in an article in the "Times" a few days ago, repeatd that that was still his view, and said that he hoped that this Bill might be so amended as to make that possible. The Tribunal of Agricultural Investigation, as it is called, presided over by that eminent economist Sir William Ashley, has reported on the same lines. Therefore, in accepting such an offer the Government would be acting upon the footing of very strong support from those with great knowledge of the subject.

7.0 P.M.

In addition to the advantage of economy of administration, there is another very great advantage in the proposal. The individual farmers are known to the manager and committee of the society; they know whether a man is good in credit or not. The safety of lending under this scheme will all the time depend essentially on knowledge of a man. You get that personal knowledge, from the existing trading society, because the man who has dealt with a society for a long time is thoroughly known. In addition, the managers of a society will know perfectly well how a man is spending his money. They will know whether it is going into the farm or whether it is going elsewhere. It is a most important safeguard always to remember in the administration of a scheme like this that you should know how the credit is being used, whether it is being used for the purpose for which it is intended, namely, for the development of the farm.

That is the offer I have to make, and I wish to add one or two comments. It is vital in the administration of this scheme that there should not be overlapping of societies. You cannot have two societies doing the same work in the same area, though there is an important proviso or qualification. Village societies for allotment holders might very properly be separate, because this scheme would work very much better if they were separate than if they were joined up in a. farmers' society. My conviction is that if farmers were asked to have a large membership of small men in the society they would be very anxious as to the continued credit and solvency of the society, and, therefore, loath to take shares. I believe—it is human nature, and, after all, it is just as well to recognise the ultimate facts of human nature—that if, approximately, the same class of men were kept together, allotment holders in one society and farmers in another society, the scheme would work very much better. I have some knowledge of allotment holders. There are over 1,000 allotment societies affiliated to the Agricultural Organisation Society. They work extremely well, find I believe that, to these men, these credit facilities would be of the greatest possible value.

If the Government do see their way to suggest that something on these lines should be done, on behalf of the organisation which I represent I can promise that we will do our best to try to get the scheme successfully launched and to do what we can in the public interest, doing it fairly to all and without any attempt to favour the agricultural co operative society. I should like to say that in the propaganda campaign I believe we can do a great deal for a comparatively small sum of money, whereas if the proposal of the Departmental Committee were adopted, namely, that the Ministry of Agriculture should conduct the propaganda campaign, vast sums of public money would be used unnecessarily, and with loss result. I wish to conclude my speech with one note of appeal. I do hope that the National Farmers' Union, who are not all in favour of agricultural co-operation, will do their best on this occasion to join in in order to make the scheme a success on the biggest possible lines. I, for one, on behalf of the agricultural co-operative movement, will welcome any assistance they are able to render, and as a lawyer shall be only too glad to give place to a farmer.

After the long, detailed, and instructive criticisms of the last speaker there seems little that remains to be said; but I greatly disagree with the comment that small credit societies would be an advantage over a large society covering a very large area. It may be right to argue that it is human nature to desire to operate in one's own backyard; but it is only fair to state that it is not by any means good business, and if we hope to make any sort of a success of the Bill now under review I am convinced that the credit societies will have to be extended much more widely than the right hon. and learned Gentleman actually suggested. One of the things to which I wish to refer arises out of the suggestion that we ought to welcome the Bill, and particularly did the right hon. gentleman refer to the Members of the Labour party who, he said, ought to ally themselves with the supporters of the Bill, as by so doing they would help agriculture, which in turn would help them, with the result that they would both receive a mutual advantage that would be very valuable. He said that to help agriculture was to help the countryside. I would like to ask him a very elementary question. How does he determine the countryside? When he talks of the countryside, does he refer to the workers in the countryside or merely to the farmers, or to the owners of the land? If he refers to the latter, then I do not wonder that he suggests that we should welcome the introduction of this Bill. Whatever may be the ultimate effect of this Bill, I fail to see as yet what benefits are going to be derived by those people who most need assistance at this particular moment. It is true to say that in certain circumstances, and particularly under Clause 2, if it is sympathetically administered benefits will be conferred on a very large number of people. At the same time, there are also cases that will be ruled out, under the first Clause, paragraphs ( c ) and ( f ), which are most in need of assistance at this moment, the very people who are compelled by the nature of their financial position to dispose of their workmen, thereby exhibiting their financial weakness.

Let us take, for instance, one illustration. We have one individual who was the proud possessor of £1,000. He purchased a farm with the aid of a loan valued at £4,000, and he finds that since he made the purchase values have decreased approximately 25 per cent., leaving him with a farm to-day valued at £3,000. He will, at the moment, be called upon to pay 5½ per cent., according to the Credits Committee Report, on £3,000 of the loan, but under the terms of this Bill he will only be permitted to borrow £2,250, which would leave him still £750 out of pocket. In these circumstances, I ask the Minister in charge of this Bill what benefit is going to be derived by that particular individual. It is fair to say that although there may be only, say, some 13,000 people who have purchased their farms in the years determined by this Bill, there are a fairly large number of them in a similar position to that which I have attempted to indicate. Therefore, it seems to me that the contents of the first Clause will largely determine the usefulness or futility of this particular Bill, and it would appear, as one hon. Member stated this afternoon, that we are going to lie down on a bed that has not been made. We are preparing to perform certain operations on the assumption that these associations will spring into being like mushrooms, whereas inside the Bill, and even in the speech delivered by the Minister when introducing it, no indication is given as to how these associations are going to be brought into being. It is true to state that only on voluntary lines can we hope to develop either these associations through which credit business will be transacted, or the credit societies.

I am rather fearing, however, that the optimism generated in the Minsiter's speech is scarcely justified by his own knowledge and the speeches subsequent to his own, because unless we can visualise the machinery which is going to operate to make this Act a useful Act prior to the passage of the Act I see no real reason for bursts of optimism when introducing the Bill. One thing is certain, that should the Associations come into being and begin to operate two classes of people will undoubtedly receive benefit under the terms of the Bill, and neither of the two are the agriculturists of this country. First of all, we are dealing at this moment with a position created by a past Government who made promises which they failed to carry out with the inevitable result that although, as the Minister stated, land may have been a luxury during the period of the War—one of the luxuries that landowners could ill-afford to reduce—it is also true that the circumstances some landowners assisted in creating enabled them to dispose of their farms, and not in the most charitable sense in very many instances. It is true to say that many farmers are always desirous of becoming the owners of their own farms, but it is also true to say that the opportunity which was afforded to the landowners during that particular period, when false promises had been given, enabled them to bring pressure to bear on many farmers who were compelled to purchase their own farms. It is also true to say that many of the agriculturists of this country possess no knowledge of any other industry, and if they were removed from their farms in the very nature of things they would develop a hopeless propensity with the result that they would subject themselves to the terms imposed on them by the landowner, and because of that fact agriculture in many forms finds itself seriously short of capital to-day. The annual commitments, with the reduced prices of some commodities, has compelled them to dispose of the money that ought to have been used either for purchasing implements or creating improvements on their farms, and they do require credit at the earliest possible moment.

Who are the people in most urgent need of this credit who are going to secure credit under the terms of this Bill? First of all, some cases, the hardest cases, are ruled out because the 75 per cent. of present day value is all they can receive, and secondly, Clause 1, paragraph ( f ), which reads:

Consequently, this will rule out the farmer who is in the worst predicament at the moment, and even though you may develop your organisation and these associations, yet under these two particular paragraphs you will deprive the men who are in the most urgent need of the opportunity of securing any benefit at all under this scheme. With regard to Clause 1 the Government contemplate giving credit to agriculturists to enable them to make a final purchase of their land without any sort of guarantee to the community. I believe that principle is bad and should not be welcomed by any Member of this House. Obviously agriculture requires assistance, and Members who sit on these benches are just as anxious as any others that agriculture as a whole should be assisted. But when efforts are made to assist agriculture we should not be compelled to give indirect assistance to that type of landowner who was tyrannical during the period of the War. Neither do we feel called upon to assist banks who have been exacting high rates of interest from poor farmers during the period when farmers were compelled to seek assistance to carry on their business.

If credits are to be given, are we not justified in asking for some guarantee, such as control over efficient production, on those farms whose owners secure credits? Such control could be retained by the Ministry of Agriculture, and whether it is operated through the county agricultural committees or otherwise, makes little or no difference so long as the powers are retained. Moreover, is it not fair to ask that some consideration should be given to the question of rent courts, by means of which, should a low rate of interest be made possible, the landowner will no longer be permitted to exact any benefit from the advantages conferred? We also feel that whatever assistance is given to agriculture, should be given not only to the farmer but to the man who follows the plough. At the present moment there is no security for the man who works upon the land, and when we attempt to give security of tenure to the farmer, we ought to give security of tenure to the agricultural labourer also. Wage boards should not be ruled out either when we are giving credit to enable farmers to get security of tenure.

Clause 2 is clearly inadequate and ought to go much further. If we desire to give general advantages and benefits to agriculture, then, obviously, Clause 2 will have to be very considerably extended in Committee. If we desire to give that universal credit, which is supposed to be needed at the moment, then we have to think not only about credit societies but about something considerably larger. Instead of tinkering in piecemeal fashion with the question by means of credit societies, we must face the credit problem of agriculture as a whole —not only short-term loans but long-term loans as well. The party to which I am attached are of the opinion that an agricultural bank is absolutely necessary and almost inevitable if agriculture is to be benefited. I want the Minister to consider the advisability of introducing Clauses which will permit of the setting up of an agricultural credit bank, so that the full benefit can be secured of all the many suggestions made by the hon. Member who spoke last, further, we desire to see co-operative trading societies set going, and sufficient money placed at the disposal of the, people concerned to enable them to develop creameries, bacon factories, and many other co-operative schemes, which should be set up and which could be set up were the credit facilities wide enough.

Obviously, in the first instance, the proposed associations will have to be started and very likely they will determine the success or otherwise of the credit societies, but instead of making a failure of either one or the other, I recommend to the Minister, if he hopes to give the benefit which this Bill is supposed to give to agriculture, that he should consider operating on a much wider scale and on a much more scientific basis than those indicated in the Bill. It is desirable to provide means whereby the State will be enabled, in conjunction with the county agricultural committees, to take over the holdings of farmers who are burdened with mortgages and give them security of tenure at reasonable prices. The men in some of the cases to which I have referred who can get no benefits whatever would be anxious and willing to dispose of their holdings, and, if opportunities are provided under the terms of the Bill, then I think the seeds would be sown for a much better state of affairs than exists at the moment. We on these benches feel that the Bill is a result of bad legislation in the past. It is one of many Measures which this Government has introduced either to cover up the tracks of bad legislation in the past, or to give effect to some promises made either by themselves or by some Government in the past. In no single instance have the Government done themselves honour, as a Government, by persisting in bolstering up obsolete systems by granting State funds without any sort of guarantees being retained for the country.

This Bill gives no guarantees to the people—which is bad in principle—and it assists the landowners and bankers much more than it assists agriculture in its present form. It fails to visualise the agricultural credit problem as a whole. Therefore, as I have said, we desire the Minister to consider the advisability of disposing of credit societies and introducing the agricultural credit bank. Piecemeal expedients will do little or no good. We ask, not for the sake of our support, but because we feel that the country wishes to help agriculture in the real sense, that every effort should be made to anticipate the future requirements of agriculture. We ask that during the Committee stage of this Bill everything should be done to prevent loopholes being left for the landowner. If these conditions are fulfilled, the Government will get support from these benches, but if they continue with piecemeal legislation and with legislation which confers more benefit on the land-owning and banking sections than on the section we are supposed to be helping, then I feel that the full support of hon. Members on these benches will not be forthcoming for such Measures. This Bill may contain germs of good, and I hope those germs will be fruitful, and that good will ultimately result, but unless many changes are made during the Committee stage, I fear those who expect much from the Bill are doomed to disappointment, since the associations, the credit societies and many other of its features are still purely hypothetical.

I wish to join in the welcome which has been accorded to this Bill, because I feel that it marks a step forward. At the same time I suggest that the provision which it makes is by no means adequate to deal with the situation, and that it is more than likely that supplemental measures will have to be taken at no distant date. When we consider that in America some- thing like £240,000,000 was set aside for the purpose of providing credit it will be realised what a very small contribution is made in this Bill towards the solution of the difficulty which our agriculturists are now up against. It is only fair to the Government to point out that the present difficulty is not in any sense of their making. It dates back to a meeting in the Caxton Hall when a very eloquent speech was made by a very great speaker —the right hon. Member for Carnarvon Boroughs (Mr. Lloyd George)—and hopes were raised high in the breasts of agriculturists. They went ahead with an energetic programme which was quite beyond their finances, as it turned out, in view of the fact that the promises of the Government were broken at a later date. Therefore I feel no blame attaches to the present Government in respect of the existing situation, but I hope this Bill will be pressed forward because there are many instances of difficulty in which assistance is urgently needed.

At the National Agricultural Council, of which I am a member, we had a recent report on this question which referred to the case of a farmer—typical of many— of 44 years' experience, who had lived on and farmed for 33 years, the same homestead; who was in the fifth year of his third lease of 14 years, and whose bankers had refused him further financial assistance. He did not know where to turn in order to meet his current expenditure and he hardly knew where to get sufficient with which to carry on until his crops had matured. We had another case of a farmer who purchased a small garden holding a year or so ago, at £2,600; who spent £1,400 on labour, fertilisers and improvements and who was being pressed by his bankers to pay off an overdraft. If he did so, he would denude his farm of all working capital. He would take, as it were, the very life blood out of his farm, and it would react very seriously on his labour and on his prospects generally. Therefore, in quoting these two cases, I would urge the great necessity of action not being further delayed.

I feel that, as far as the bankers are concerned, who have, I understand, advanced no less than £46,500,000, a sum equivalent to almost £2 per acre of the land under cultivation in England and Wales, more cannot reasonably be expected from them. This is a big problem, and it must be faced in other ways. Many of us felt that the agricultural industry was very nearly taking a nose dive, but I hope that, if steps are taken to assist it, it will be found that it was merely looping the loop, and that it will emerge from the present crisis on a lower plane and, I hope, a safer and a better plane. Clause 1 of the Bill deals purely with land purchase facilities, and I suggest, as has been suggested in other quarters, that the scope of that Clause is far too narrow and limited. I do not see why it should be limited to purchasers between 5th April, 1917, and 27th June, 1921, a period of only 1,600 days. I feel that that period should be greatly extended, and when we cast our eyes in other directions, if we look to Ireland, we know that a very generous scheme of land purchase facilities was extended to Ireland and was denied to this country. I do not know why generous proposals should have been framed for that country and should not be applied, in a modified and suitable way, in this country. Again, so far as smallholders are concerned, in the 1908 Small Holdings and Allotments Act powers are given for the purchase of land, and I do not see why, if Ireland and smallholders should have these advantages, they should be denied to other farmers in this country, just because they do not happen to fall within the arbitrary limit of a small holding. I suggest that these facilities should be extended to cover the case of all farmers.

With regard to the suggestion put forward by the hon. Member for the Don Valley (Mr. T. Williams), that agricultural credit banks should be considered, I much hope that the Minister will see his way seriously to consider that question. I believe that agricultural credit banks would do a great deal of good, not only in providing credit for direct farming operations, but also for other operations, such as drainage, which is vital for the full development of the land and full employment on the land. A point has been made regarding the limitation of 75 per cent, of the present day value, and while I do not want to labour the point, I feel that more than 75 per cent. should be allowed. We already have precedents in regard to that matter. I think the 75 per cent, should We increased to 85 per cent., and I think that all the loan negotiation charges should also be allowed to be included. I do not think that in suggesting this I am making an unreasonable request, because here again, in the case of small holdings under the 1908 Act, a county council or a county borough council may advance up to 4/5ths of the purchase price of the holding—80 per cent. These authorities may also excuse payment of instalments for five years on consideration of the expenditure which has been incurred by the occupier in improving the value of his holding, and I feel that the provisions which have long governed—and, so far as I know, have worked satisfactorily—land purchase in this direction should also be extended in this other direction.

It was suggested by the last speaker that there was no security, but in this part of the Bill there is every security. There is the security of the land itself, and after the first few instalments have been paid, the security, instead of being a wasting asset, becomes a rapidly improving and growing one.

I would like to correct the hon. Member. I do not think I ever suggested that there was no security in the land. I suggested that the farmer at the present moment, with his financial embarrassments, had no security at all.

I am sorry if I did not quite follow the hon. Member's argument, and, of course, I accept his explanation. With regard to the question of the manner in which the scheme should operate, the proposal is that the scheme should be worked entirely through approved societies, and that all losses which may be incurred should fall entirely on the shoulders of those societies. I think a case can be made out, and I hope it will receive the consideration of the Government, that the Government in their turn should be prepared to bear some portion of any loss. The loss might be divided up, perhaps, on a fifty-fifty basis. At any rate, I think the Government should be prepared to consider the question as to whether it is either fair or wise to cut itself clean out in this way from bearing j any possible loss. In a general way, I think we can welcome the fact that the Bill provides for a net rate of interest. I think that advantage is to be gained from the fact that the loans cannot be called in, and I think we all welcome the stability which is given in that direction.

I would crave the indulgence of the House in referring briefly to the question of short term loans, as I think a great deal more life wants putting into the Bill in that direction. So far as these proposals are concerned, we have really only a skeleton before us. I recognise the difficulties of setting out in black and white what is going to be done and how it is going to be done, and I realise that land legislation ought to be, and must be, put on a self-supporting basis. I realise that there must be no dipping into the public purse, because, after all, the public purse is very flat indeed, and we want no further broadcasting of public funds. We had a great example of that during the War, from which we are finding it very difficult to recover at present. The main purpose of this Bill must be to see that we get a steady flow of capital for the effective development of the produce of the soil. We know that emigration is put forward as one of the means of curing unemployment, but, whatever merits that proposal has got, I suggest that it is better, if possible, to keep as many of our people at home as we can and to produce as much as practicable from the soil by methods such as are suggested in this Bill.

In regard to Clause 2 and the promotion of these credit societies, I feel that we want more information, and I hope that more will be forthcoming when the Minister winds up the Debate. I want to know how long he thinks—and he has the information—it will be before these societiee get into working operation. Does he think that the borrowers will be prepared to put up one-fifth of the capital, as is suggested in the Bill? How is he going to deal with the difficulties of organization? Anyone with experience of country life realises how very difficult it is to organise things in the country. Means of meeting and discussing are not so available as they are in the towns, and there is not the same keenness and desire I to take up new ideas as in the towns, and I would like to know how the organising is to be proceeded with, how the organising secretaries are to be paid, whether the accounts are going to be audited, and how, and I think we should have a great deal more detailed information on these points.

In this connection, I would like to suggest that the possibility of utilising the county agricultural committees should be carefully considered. During the War these county agricultural committees played a very considerable part in this credit side of agriculture, when the problem before us was to increase as rapidly and as far as possible the production of food in this country. A scheme was in working operation through the county agricultural committees, and it was terminated only in March, 1919 It was terminated by the action of the Treasury, and I am sometimes inclined to resent what appears to me to be high-handed and at times almost arrogant action on the part of one Department against another, of which, perhaps, this may be an example. At any rate, this credit scheme was arbitrarily terminated at the will of the Treasury, and, so far as I know, there was no opportunity of ventilating the matter, of inquiring into it, or of seeing how far it was carrying out a good work. I feel that the termination of the scheme in that way, while it may have saved a few thousand pounds at the time, may cost the country a great many millions in other ways. After all, that particular scheme was framed at a difficult time, when it was very difficult to get people to work the scheme properly, and it resulted in a loss of only 1·8 per cent. I hope we shall consider this question of credits in the broadest possible way, because it seems to me that it is wiser to try to develop a good credit scheme, even if a little money has to be found for the organisation side of the scheme, than it is to pay out great sums in the form of doles.

In the Eastern counties, the area in which I reside is mainly devoted to arable, and the arable land, as hon. Members arc well aware, is the land which is most in need of assistance at the present time, and it is also the land which employs the greatest measure of labour per acre This land in the Eastern counties is, perhaps, more in need of assistance than any other part of the country, because the markets which are nearest to it are the most vulnerable markets in the sense that overseas water carriage is a direct competitor Therefore, I feel that the interests of the Eastern counties should be considered in this matter. I suggest that the terms proposed in the Bill are not as good as they ought to be, when we consider that the money is required under Part 2 for production purposes, and although I am fully in sympathy with any policy required for protecting the pockets of the people, I hope the Government will realise that there is nothing so foolish as to be penny wise and not to study the question from the broadest possible aspects. I hope and believe this Bill will be sent upstairs, where I trust the Government will take-into account the various points which have been raised, and I believe we shall then be able to make a really good Bill out of it, in what, I am convinced, is a really good cause.

Many of the points to which I wish to refer have already been dealt with, but I wish to join with those who have welcomed the Bill and also with those who have pressed the Minister for reconsideration of some of the points in it. Clause 1 goes, to a certain extent, towards meeting the case of those who are probably suffering more than any other branch of the agricultural community at the present time. That is to say, those who bought their farms in the time mentioned in many cases paid a price which was not reasonable, and certainly was unreasonable in view of what has happened since. I cannot venture to pretend that this Bill will give complete satisfaction, either for what it contains, or may contain, in virtue of the Regulations which the Minister will subsequently promulgate. The farmers have suffered so many disappointments already that it would be a very sad thing if one of the results of this Bill was to add a further disappointment to those already experienced.

For that reason, I want to press upon the Minister, in the first place, that he should make some concession either in regard to the amount of money which is advanced or in regard to the period of repayment. I agree with what the hon. and gallant Gentleman the Member for Newcastle-under-Lyme (Colonel Wedgwood) said, that it is very important that this scheme should be run on an economic basis. If not more than 75 per cent, can be advanced, then I would venture to press the Minister to see whether he can make the concession in the other direction, of enlarging the period of repayment. The other thing I wish to press upon the Minister is that Sub-section (5) of Clause 1 shall be liberally interpreted. Under that Sub-section the Treasury have the power to make the Regulations, and it is natural and proper that the Treasury should have that power rather than the Minister of Agriculture. I do hope, however, that the Minister will be on the doorstep of the Treasury, if not inside, when these Regulations are being prepared, and will see that they are such as will make it easy for associations to be provided by the Treasury, so that they may work in a manner which will give real relief to those whom the Bill is intended to help. Further, I would press upon the Minister the desirability of having these Regulations ready in order that they may be published as soon as the Bill is passed, so the farmers may know exactly what they may expect, and so that the Bill may be put into operation at once.

In regard to Clause 2, I do not want to say much after the important speech of my hon. Friend opposite, but I want to emphasise this fact: that it is in the power of the Ministry and the Treasury to make this scheme a success or a failure. To be perfectly frank, we do not know what the scheme is. We have only got the skeleton here. The body will depend upon the Minister of Agriculture and upon the Treasury. I hope we may expect the Minister of Agriculture will do his part properly. I am not quite so sure of the Treasury. As has been pointed out, they have got power under this Bill to impose conditions which will make the thing a farce from the first moment, and make it impossible to carry out. For my part, I must confess that I am not very optimistic as to the operation of Clause 2. Farmers are like Welsh people. They are very shy of these agricultural societies. Also, like Welshmen, they do not like to interfere with other people's business. They do not like other people to interfere in their business. Therefore I am afraid that in many cases farmers will not make use of these societies, I am not at all sure that it would not have been better to have had an agricultural bank, or even to have gone to the extent of guaranteeing the ordinary banks in respect of advances which they might have been empowered to make on similar terms to those laid down here.

For this reason, I am not optimistic in regard to this Clause, though I certainly join in the hope expressed that it will be successful. I am quite sure of this, that if it is to be successful the societies will have to comply with the conditions mentioned by my hon. and learned Friend, and in particular there will have to be the strictest precautions to ensure secrecy: also Regulations to enable those who desire to get a loan to get it freely as if they were getting an ovedraft from their own bank manager. Although doubtful of the prospects of this Clause, I hope it will succeed, because it is quite obvious that the lack of capital and credit to-day is causing great damage to the agricultural industry. There appears to have been a tendency on the part of several speakers to make this a question of town on the one side and country on the other. It is not that. It is a question affecting vitally the prosperity of the country as a whole at the present time, and for that reason I hope the societies will be successful and that something will be done to enable the agriculturists to get on with their work, to improve the position of the industry, and to improve and increase the return from the land. It has been suggested I that this is a Bill to subsidise agriculture, or references have tended in that direction. That is not so. Certainly Clause 1 of the Bill has nothing in it; in the nature of a subsidy. Clause 2 will i not have anything in the nature of a I subsidy if the societies are really taken I up, and if they are properly and efficiently managed. If that be done, I do not think the State will be running much risk. In that event, it will get a fair return in the improvement taking place in connection with the industry which in perorations is always the most necessary, but in practice is often the most neglected.

There are many here who, like myself, represent an agricultural constituency. The ground has been very carefully covered by several preceding speakers, so that little more is left to be said. There are, however, one or two points I should like to refer to, if only to reiterate and to confirm the opinions. which have already been expressed on both sides of the House. First of all, let me say that as the Bill is an instalment for the improvement and help of agriculture those of us who represent agriculture in this House welcome it. We must not, however, forget the fact that a very large number of Members have been sent to this House to look after that all-important industry, one in which the country is so vitally interested. As to the provisions of the Bill there is no doubt about it that the prime necessity is to get us to give a grant of money to those who need it, and who want it at the lowest possible rate of interest. It has been pointed out that it is quite possible for the Government to raise a loan on a basis of 4½ per cent. Such being the case there will be no difficulty whatever, or should be none, in floating a loan of 4½ per cent, to help the farmers. But farmers who are in dire necessity, and need the assistance of this Bill, should be able to get their advances on better terms than those which have been suggested by the Minister of Agriculture. The advance which it is proposed to give is not, in my opinion, very liberal. In fact, I think that the Minister of Agriculture, if he sticks to the conditions suggested, will be well protected and have an ample margin, one which is really larger than necessary. It is quite true that agricultural land has fallen very much in value; considerably in fact. Many farmers or owners are now undoubtedly anxious to get assistance of this kind which will enable them to obtain a mortgage on a term of long years.

Under present circumstances, it is quite possible that the borrower will find that he is only able to obtain a sum very much less than he expected to get. Moreover, as in many instances he is able to obtain advances from his banker based upon a margin of 20 per cent, upon the original price paid for the farm, the offer of the Government, or rather which the Bill indicates, is not on the liberal side, and I think certainly the terms might be extended. It must not be forgotten that in the money borrowed under these conditions the borrower will have to pay the expenses of a transfer, which are considerable. I believe the amount is something like 5 per cent. Consequently, if a farmer wishes to have a mortgage on his farm for, say, £6,000, he would have to pay out of that £300 in expenses. The Government, I think, ought to make some provision—possibly when it gets to Committee—to meet this aspect of the case. In many cases, I imagine, the farmer would be quite unable to meet the expenses, particularly in view of the fact that he is only going to get from 75 to 80 per cent, of the present value of his land.

8.0 P.M.

I would like to emphasise the suggestions already made that the value of the land to be secured by the mortgage should be increased from 75 per cent. to 80 per cent., and if possible to 85 per cent. That, in my opinion would be a safe figure to adopt, as agricultural land has already fallen considerably, and, short of catastrophe, it is hardly likely to drop further. That would be an encouragement and assistance to the farmers who bought their land at a time when there was no reason to suppose the Government were to withdraw the benefits of the Corn Production Act in so short a time, and who bought at a, price which, but for the Corn Production Act, would have been absurd. With regard to the term of 60 years, I regard that as generous and for the sense of security which the term will give. There is no doubt that all who are entitled to take advantage of it will do so if their circumstances permit them, but do not let us spoil the ship for a halfpennyworth of tar. We want to make this Bill successful. It has been received with acclamation on all sides of the House to-night. I remember, when the appointment of the Committee was suggested, an hon. Member speaking in this House said that in all probability the Committee would have the same fate as other Committees which had been set up, which was to quash further interest and inquiry into the subject. It has not been so in this case. We have here a definite instalment, one of which I am sure that all those who represent agriculture in this House are only too glad to have the opportunity of taking advantage.

With regard to Part II of the Bill, from a business point of view, it certainly seems to me that it is more or less unworkable with its present conditions. Clause 2, Sub-section (2), states that, subject to the provisions of any Regulations made by the Treasury, the Minister may make advances to any such society, but so that the total sum advanced to a society shall not exceed an amount equal to £l for every £1 share held by members of the society on which a sum of 5s. has been paid,. I do not know whether these shares are going to be taken up. I very much doubt, if people who are substantially in good credit and who have means of their own will be prepared to take up shares in any society in which they have to pay 5s. per share with a remaining liability of 15s. That would not do much for the purpose of establishing a co-operative society. I quite agree with my hon. and learned Friend below me (Sir L. Scott) that co-operation is very necessary and very desirable, and I think that some legitimate means should be discovered for creating co-operation in this country, something on the same basis as has been the case in other countries. We need co-operation, and until we get co-operation there is no doubt in my mind that it will not be possible to reduce the exorbitant differences between the prices obtainable by the farmer and the prices the consumer has to pay. It is by cooperation that the producer can get nearer to the consumer, and from that point of view it is extremely desirable in every way that co-operation should be encouraged. But I fail to see how we are going to arrive at any workable system of co-operation under the terms of this Bill.

To begin with, there is no suggestion as to the payment of any interest on these shares. I know it may be said that the man who wants money will be only too glad to pay 5s. in order that he may get a credit of 20s. But that is the very man who is not in a position to pay the 5s., because he has not got it. If this Bill is going to provide him with the assistance he undoubtedly needs, I suggest, with every respect to the Minister for Agriculture, that the Government must take their courage in both hands and provide a Certain sum of money for working these associations by some more direct means than that which is now suggested under the Act. That it is necessary for the Government to take this matter in hand there can be no doubt, if we look at what other countries have done. It has been found desirable in many countries to obtain capital under Government auspices. It has been done on the Continent; it has been done largely in America. The hon. Member for Cambridge (Sir D. Newton) referred to loans for farm credit which have been arranged by the American Government. A Farm Credit Bill, which was previously approved by the Senate and has now been passed by the House of Representatives, provides for the creation of 12 Government banks, with an authorised capital of 600,000,000 dollars, equal to £106,000,000 sterling of debentures. It also authorises additional credits for the co-operative societies in order to meet the financial needs of agriculturists.

If other countries have found that the best means of supplying the needs of agriculturists, I suggest that we might in some similar form provide the necessary money to give to farmers who are to-day in absolute need of assistance, who need the help of the Government because they cannot help themselves in the meantime. Many farmers, who at the time the Corn Production Act was passed purchased their farms, cannot carry on, and they will become bankrupt unless they have some assistance, and we want to do something, not only for these farmers, but also to help the unfortunate agricultural labourers, who are to-day in such very unfavourable and extremely unsatisfactory conditions. Although I cannot feel that this Bill is by any means satisfactory in its present position, I hope that when it goes into Committee such improvements will be made to it that it will really become a workable Bill and one which is going to afford assistance of a tangible character to agriculture. Therefore, I shall have very great pleasure in voting for it.

As the Debate has proceeded such a long time and I have sat through it all, I do not think I shall say as much now as I intended to do, but I hope more of my hon. Friends on this side will say something about the first part of this Bill with regard to the credits on land. I specially rise to say a word or two with regard to the second part of the Bill which provides for the setting up of co-operative credit societies. We know a little in the industrial co-operative movement of this country, a movement which was the pioneer of modern cooperation, about propaganda and the organisation of co-operation, and I was rather interested to hear in that rather long and detailed speech of the hon. and learned Member for the Exchange Division of Liverpool (Sir L. Scott) of the offer made to the Government that the co-operative credit societies referred to in the Minister's Bill are first of all to be made to function administratively through the local offices and branches of the existing agricultural co-operative societies, affiliated to the agricultural organisation societies. But I was more interested to hear later in his speech that he was very anxious that there should not be any overlapping between cooperative societies.

I want to point out, particularly to the Minister, that the agricultural co-operative societies of this country, many of them very excellent and well run, were organised by means of propaganda which was paid for by the State. Their propaganda was subsidised by the State for the purpose of developing agricultural cooperation, and, after they had been organised on that basis, in many cases they began to undertake functions which were actually overlapping and competing with the voluntary industrial movement which received no subsidy for propaganda from the State. If I follow aright the opening statement of the Minister of Agriculture, he wants particularly to avoid any question of conflicting interests between one side of co-operation and the other side. I want to say at once that we do not want any issue raised between the two great wings of co-operation, but rather do we want more co-operation for the benefit of both industrial and agricultural communities of this country. It has been said on many occasions during this Debate that the interests of the townspeople and the rural people are identical, but there can be no solution of the agricultural problem until, through actual co-operation, industrial distributive cooperation is applied to farm produce as well as agricultural produce so as to bring the agricultural producer and the consumers more directly together. Until that is done there can be no real solution of this problem.

The Minister of Agriculture has set up a Committee which has issued an Interim Report on this subject. I have produced proof after proof with regard to various agricultural commodities, and they have been laid before that Committee. I do not want to anticipate by any comments their Final Report, but from actual delving into the facts and statistics with regard to the prices of agricultural pro- duce, I have no hesitation in saying that it is more than ever clear that, unless there can be far closer co-operation between the consumer and the producer to eliminate much of the heavy overhead charges, there can be no real solution of the agricultural problem which at present exists in this country and which will continue.

Those who have criticised the part of the Bill relating to agricultural credits have referred to the fact that it will be difficult to get the farmer to use them, and that much propaganda and education will be necessary on this subject. I suggest that no amount of education or progaganda will bring those societies up to the same level as the successful cooperative societies in Denmark and Germany until the smallholders in this country obtain better conditions with regard to the land. The success of cooperative credit societies in Germany and Denmark has been mainly due to the fact that they had something to pledge for their credit. They have some direct interest, some peasant holding which they can offer as security for credit. Although one desires to help to set up these credit societies, in my opinion there can be no large and final success of organisation on that side of agricultural co-operation until the proposals that have been and will be put forward from these benches with regard to land reform can be carried out.

I have listened with great interest to the concluding remarks of the hon. Gentleman opposite. I have always understood that in the case of the smallholder in Denmark and other foreign countries who joined co-operative credit societies, the great advantage he gets is that the land belongs to him. I am glad to have the hon. Member as a convert on that point, because the owning smallholder is what I have contended for during the last 15 or 20 years. That is a principle we have always fought for, and I am glad to hear that it is no longer a party question.

We have come to the conclusion that the same advantages can be gained by the taxation of ground values and nationalisation, thus removing ownership altogether.

I have no complaint to make, in fact I am pleased with the reception given to this Bill. The chief criticism that has been directed to it is that it does not give better terms. For instance, it is suggested that the period for paying off a loan should be longer, that the proportion advanced on mortgage should be higher, and that the rate of interest should be lower. My Department has been engaged in long negotiations on these subjects for a very considerable time past, and I can assure hon. Members who have made those criticisms that we have got the best terms we could get. As I said in my opening remarks, they are very much better terms than we first thought we were going to get, and when they are worked out I do not think that, on the whole, they are so very bad. The hon. Member for Eye (Lieut.-Colonel Courthope) raised two or three points with regard to technical matters connected with associations for advancing money on mortgage, and also with regard to land improvement societies, but they are mostly very technical matters. I have gone into those points with the hon. and gallant Gentleman, and I can assure the House that they will be carefully considered in the course of this Bill.

One point which he raised I think I ought to say a word or two about, that is with regard to the Treasury regulations referred to in the Bill. It is proposed to proceed at once with their preparation, so that they may be ready for issue immediately the Bill is passed. My hon. and learned Friend the Member for the Exchange Division of Liverpool (Sir L. Scott), on behalf of the Agricultural Organisation Society, offered to give us any assistance that he possibly could in the setting up of these credit societies. I need hardly say that we shall be very glad to get every assistance we can. The exact method in which that assistance can be given is a matter on which I can make no announcement, but I shall be happy to discuss the matter with my hon. and learned Friend or anyone else who can help us. I understand that there is another question which the House is anxious to discuss before the evening terminates, and I suggest that we might now come to a decision on the Second Reading of this Bill.

I have listened to this Debate all the afternoon, and I heard early in it a maiden speech in which the Minister in charge of the Bill was likened to a cuckoo. I do not know much about the qualities of a cuckoo— it may be rather a naive confession—but I must say, as I listened to the opening speech of the Minister, while I admired the way in which he handled this case, I noticed also that he kept the most important parts of the Bill rather in the background and emphasised only those parts which are really the least contentious. I should like, if it is not inappropriate to-night, to get at the real facts behind the Bill. They have been hidden during the whole Debate this afternoon. Ostensibly this is a Bill for agricultural credits, but the first Clause states specifically that the object of the Bill is to relieve those who incurred debts with the banks from 1917 to 1921. I should like to remind the House that, in 191V, we were under a threat of starvation, owing to the submarine menace from Germany. The German Military Command and the German Naval Command at that time discovered—I am assured en good authority that they knew long before that—that we made such a bad use of our land in England that the most powerful blow they could strike at England would be to cut off her imports of food by sinking her shipping. Hence we had the submarine menace, and, under the threat of that, we had Lord Ernie, then Mr. Prothero, who was Minister of Agriculture, coming forward with the Corn Production Act to make the agriculturists of England use the land properly. If the Labour party ever comes into power, they will force every acre of land in England to be used, by some other method than at the expense of the taxpayers' pocket.

At that time the farmers were given a guarantee of prices. I want to point out the subtlety of the Debate this afternoon a subtlety no doubt quite unconscious far as the Opposition is concerned. Why was it that farmers were forced to buy their land between 1917 and 1921? Forced I say, and I am using the language of the Reports issued by the Government themselves. Land speculation went wild up and down the country at that time, and the farmers had no choice but to buy their farms at the high prices prevailing. I want to ask the Minister of Agriculture and his right hon. and hon. Friends behind him, why was it that the farmers were faced with either buying their land at the prevailing high values or clearing out? If I may have the attention of the Minister for a moment, I would like to give a little quotation from a speech of his predecessor on the occasion of the introduction of the Corn Production Act. He said that "The Times" had published recently a long letter, in which landowners had promised that they would not raise the rents as a consequence of the Corn Production Act, and he continued:

Then he went on to say that, under the Corn Production Act, the honour of the landowners of England was such that he thought there would be no increase of rents as a consequence of the guarantees given under the Act. Land values went up, and when that took place in agricultural areas, the landowners began to press the farmers to buy their land at these high prices or to clear out. The farmers were thus driven to the banks in order to find there wherewithal to meet the demands of the landowners. The Corn Production Act was withdrawn in 1921. There has since been a falling asset in so far as the value of land is concerned, and the farmers have been left with these high debts hanging over their heads. Now to-night—and I am not blaming the right hon. Gentleman the Minister of Agriculture, I would rather extend to him my sympathy—he is carrying the baby of the late Coalition Government, who were the authors, under the leadership of the right hon. Gentleman the Member for Carnarvon Boroughs (Mr. Lloyd George), of the Corn Production Act, which has landed us with this Bill, whereby we are to guarantee credits to those farmers who were caught in a trap by the Act, and to help them to pay off the debts they owe to the banks.

I am sure that many of us on this side of the House are somewhat perplexed with the problem as it faces us. We do not wish to see the farmers left stranded with these heavy debts imposed upon them as a consequence of the operation of that Act. But I think what we can do on this side, and certainly what I would like to do in all sincerity, is to warn this House of Commons against any advances to be made by means of subsidies and subventions. I am saying this because I know that within a few days from now the Minister for Agriculture will be coming forward with a Bill for a greater reduction in the rates in the agricultural areas of England, which will have no other effect than the effect produced by the Corn Production Act. It will reduce the rates in agricultural districts. The Government is spending millions of money on road development. It is seeking at the same time to reduce the rates in agricultural districts. It is heavily taxing the motor industry to keep down those rates, and that means another subvention to the rates of agricultural land-owners. All these things, I say, will have the same result as the Corn Production Act, and I can see in the near future, unless this party to which I belong becomes powerful enough and stern enough, in so far as its demand for a new land policy is concerned—

The hon. Member, I think, must realise that he is going far beyond the scope of the Bill.

I notice that the right hon. Gentleman opposite smiles, but I feel sincerely on this matter. I am not speaking in order to waste time. I feel keenly about this, and I was only using this illustration as a means of warning the Government that, if these subventions in the past have led to increased land values, which means the crippling of the development of agriculture in this country, then the concession the Government are about to make will have the same result. I can see no other good that can be made out of this opportunity to-night than drawing the moral which I am attempting to draw. We are left with no option but to support some form of credit to save the farmers, in view of the fact that they must meet these debts, which are hanging over their hands and are now demanded from them by the bankers. That is the main crux of the Bill, but it has been kept in the background all the afternoon. The main thing that has been discussed has been the pros and cons of whether we should subsidise agriculture, whether we should advance money, whether we should advance credits; while the real soul of the Bill has been to get out of the trouble that has come to us as a consequence of the Corn Production Act. That is all I have to say, and I dare say the Minister may feel relieved that I have now come to the cadence of my song. I will do all I can to support him in an honest endeavour to rejuvenate the agricultural development of England, because I think it is sad in the extreme to look upon the land of England under-tilled, to see vast stretches of it unused, for I say without fear of contradiction that the land of England is one of the most beautiful assets that God ever gave to man. We are under-using it, while thousands of our people are congested in these veritable dens of slums. Our land is unused, we cannot get housing—

I am afraid that the hon. Member is developing his illustrations into arguments.

It is not often that I do that, and I take the correction rather as a compliment, but I have now nearly finished, and I am sure you will excuse a heated partisan in a wild peroration. I was merely drawing attention to the fact that, if we could only, get a community of ideas, an agreement all through this House, something could surely be done to develop this great asset and transform the face of England, not by giving doles, but by using public money, if it must be used, to develop this great asset for the common well-being of the whole of society, and not for the few. That is all that I am seeking to put forward.

Question put, and agreed to.

Bill read a Second time, and committed to a Standing Committee.

Agricultural Credits [Money]

Considered in Committee, under Standing Order No. 71A.

[Mr. JAMES HOPE in the Chair.]

Resolved,

Resolution to be reported To-morrow.

AGRICULTURAL HOLDINGS BILL [Lords]

Considered in Committee, and reported, without Amendment; read the Third time, and passed, without Amendment.

AGRICULTURAL HOLDINGS. (SCOTLAND) BILL [Lords]

Considered in Committee, and reported, without Amendment; read the Third time, and passed, without Amendment.

Workmen's Compensation (No. 2) Bill

Order for Second Reading read.

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

The Home Secretary, who has taken immense interest in the drafting and preparing of this Bill, is very disappointed indeed that extremely important duties elsewhere prevent him being present to-night. I personally am also very sorry, because I am fully conscious of the fact that I cannot deal with the Second Reading in nearly so adequate a manner as my right hon. Friend would have done. We have already had two very full Debates on this subject. The hon. Member for St. Helens (Mr. Sexton) on 21st March last moved a Motion for the codification of the whole of the Workmen's Compensation Acts and there was a very wide discussion on that occasion, not merely in respect of codification but on the question of the amendment of the Act of 1906, and my right hon. Friend accepted the Motion. He pointed out that he could not bring in a Bill for codification until an amending Bill had been brought in first. Therefore this is the first step, and the next step will be —and my right hon. Friend hopes it will take place very soon—a consolidating Bill, if he can get the general assent of the House. There was a second very important and full discussion which took place on the Bill brought in only the other day by the right hon. Gentleman the Member for Derby (Mr. Thomas), and that Bill was practically a complete acceptance of the recommendations of the Holman Gregory Committee. This Bill does not accept the whole of those recommendations. I do not think any Government is bound to accept the whole of the recommendations of any Committee which may be set up. In fact, even the right hon. Gentleman the Member for Derby himself did not carry out to the full all that the Committee proposed. The present Bill is founded on the recommendations of the Committee, but there are certain points in which it differs from their proposals. In the first place one of its recommendations was that there should be compulsory insurance. I do not say for a moment that the principle of compulsory insurance is wrong or that it is impracticable, but it involves the creation of a great deal of additional machinery and additional cost, and I think at present it would be inopportune to introduce it. It also means a very radical alteration at a time when reconstruction is going on in industry as a whole.

The Holman Gregory Committee also recommended that there should be State supervision of rates of premium. The object, of course, was to secure that a reasonable proportion of the premiums paid should go in respect of compensation. The Bill does not carry out that recommendation, but I am glad to say we have arranged that it shall be very largely carried out by voluntary agreement with the Accident Offices Association. It is rather technical, but I should like to mention the gist of the agreement reached with the Accident Offices Association. This is the effect of it. The loss ratio which the total amount paid by the companies under the association in any year in respect of compensation, including reasonable medical and legal expenses, bears to the total amount of the premiums received by the companies in that year is to be not less than 60 per cent, during each of the next three years. After those three years it is to be 62½ per cent, or such other proportion, not less than 60 per cent., as may be agreed upon, and further, if the amount paid in respect of compensation falls short of or exceeds the above loss ratio, the companies will be bound to make a corresponding rebate or will be entitled to make an additional charge, as the case may be, to the employers when the next premium is paid. The Committee recommended that 70 per cent, should be paid in compensation, but circumstances have very largely changed since the Holman Gregory Committee reported. In the first place, there has been a very large fall in the premiums owing to the immense quantity of unemployment, and, secondly, we are not adopting compulsory insurance.

A paper will be presented to the House showing what the agreement is, and I think hon. Members will consider it is a very fair agreement. In future the percentage payable in compensation will, after three years, unless otherwise agreed, be not less than 62½ per cent, instead of, as I believe it was in 1921, no more than about 37 per cent, of the whole of the premiums received. The Bill also differs from the recommendations of the Committee in respect of fatal cases. The recommendations, if carried out, would have imposed a very heavy liability on employers amounting on the whole up to £800. The Committee pointed out that one of the most pressing needs was to make provision for the case of a widow left with young children. This the Bill undoubtedly does. It proposes that compensation should be increased up to an amount equivalent to a weekly allowance of one-tenth of the workmen's average weekly earnings, subject to a limit of £2, in respect of each child up to the age of 15. The Memorandum to the Bill shows how the figures are worked out in individual cases.

The Bill also differs from the recommendations of the Committee in regard to total and partial incapacity. The Committee recommended a figure of 62⅔ per cent, in all cases up to a maximum of £3 a week. The Bill adheres co the original 50 per cent, under the Act of 1906 as regards the higher-paid workmen, but it raises the maximum to 30s. a week instead of £1, and in regard to the lower-paid workers who earn a weekly wage under 50s., it fixes the proportion on a varying scale between 50 per cent, and 75 per cent. In regard to partial incapacity, there is a similar scale adopted for the lower-paid workmen. So that in all these cases the lower the wage the better the benefit. The Memorandum gives very interesting details in regard to what the compensation will be in individual cases. There are several other matters in which the Bill differs in certain respects from the Holman Gregory Report and recommendations. In particular, Clause 6 deals with the words "arising out of" and "in the course of'' employment. These words occur in the 1906 Act. Clause 6 extends the meaning of the expression of these words, as interpreted by the Courts, so as to allow compensation for death, and serious and permanent disablement in all cases where the workman meets with an accident through doing work for the purpose of the employer's business. [An HON. MEMBER: "And minor accidents!"] Hon. Members will recollect that the Holman Gregory Committee recommended that no alteration should take place in this respect, but my right hon. Friend the Home Secretary has been very much impressed by the cases of hardship which occur under the present system. The right hon. Member for Derby in his speech the other day gave some very striking instances of the hardships which occur. To a great extent, I believe the Bill meets these cases of hardship, but I would point out that this is only the Second Reading stage, and we shall have an opportunity of going into all the details in Committee upstairs.

I think I have dealt with practically every point on which the Bill differs from the recommendations of the Holman Gregory Committee, and I should like to mention the various part of the Bill, the framework of which is based on the recommendations of the Committee. In the first place, we carry out the recommendation about the waiting period. In future the waiting period will be three days, and compensation will be paid on the expiration of the three days. That is a great improvement on the present system. In the second place, share fishermen who are not wholly remunerated by shares in the business will be brought in at once under the benefits of the Bill and other fishermen, who perhaps do not quite come into line with that provision, can be brought in by special Order by the Home Secretary, if he thinks they need certain consideration. Incidentally, I may mention that the London taxicab driver, the golf caddie, and persons employed on British ships who are not borne on the articles, are brought at once under the benefits of the Bill.

In regard to notice of accidents, Clause 9 contains provision to insure that the workman is acquainted with the necessity of giving notice of the accident, and making his claim. It also makes the procedure, on the whole, far easier for the workman than has been the case up to the present. Clause 10 allows either party, the employer or the workman, to get a dispute as to the workman's condition decided by a medical referee. The Bill further contains provisions to meet the complaint of workers that compensation is sometimes unreasonably and arbitrarily stopped by the employer. The Bill also —there have been a good many complaints in the past about this—gives priority in cases of bankruptcy to the workman's claim up to the full amount. In the past the workman's claim was only given priority up to a sum of not more than £100. Finally, Clause 22 provides for first-aid in factories and other buildings where the Factory Acts apply. I have, tried to give a sketch of the main principles of the Bill. We shall have an opportunity of discussing all the details in Committee upstairs, and I am sure the Home Secretary will do his best to meet any reasonable objections that may be raised. I think the Bill is a great advance, that it is a great reform, and I hope it will be received with favour in all parts of the House.

9.0 P.M.

I do not rise to discuss the Bill, but to appeal to hon. Members who are specially interested in this question to let it go, under the special circumstances in which it is being presented. The Bill was originally down for Friday, but an opportunity having arisen to-day for giving it its Second Reading, I think everybody on both sides of the House will agree that a Second Beading should be given so that it may be handed over to the experts. This is pre-eminently a Bill for the experts, the expert employer, the expert lawyer, and the expert workman. The whole point as a result of the acceptance of the Second Reading will be that the Bill will go upstairs, and my hon. Friends behind me, who know so much about this subject, and unfortunately see much of it from practical experience, will be able to thrash out all the details in Committee. I would, therefore, beg my hon. Friends to give the Bill a Second Reading forthwith.

Having regard to what has been said by the Leader of the Opposition, I certainly shall act upon his suggestion, because of the great pleasure that will be felt in all parts of the House that this Bill has been introduced and that the events of last night will not have deferred its consideration. The Bill touches vital issues, and the only matter for sincere regret, which I think will be shared by Members generally, is that we are not dealing with a. Bill to consolidate the whole law. I wish that the Government had had the courage to introduce one Measure of a comprehensive nature, instead of one Bill that will give rise to a great deal of case law in the months it is in operation. It might have been a great advantage to have had one Bill consolidating the whole law, so that we should not have to go through the discussion at a later time. Most important matters are raised. There is not a town or a village in the country that will not be affected by the passing of this Bill. There were certain Clauses to which I had intended to make reference, but I will defer comment, having regard to the suggestion made by the Leader of the Opposition, and the earnest desire to see this Bill carried into law, amended as I think it will be by very careful discussion, because if there is anything we have learned in connection with the law of Workmen's Compensation it is the necessity of avoiding in the new Bill the troubles that have arisen in consequence of previous legislation. Without further comment, I am happy to associate myself with what has been said.

I shall have regard to what the Leader of the Opposition has said, but I do not want it to go forward that there is no opposition, and that there could not be some very severe criticism made of this Bill on Second Reading if we were prepared to debate it and we had time. It is a most complicated Bill. It represents a big reduction in the present compensation that is paid to workmen totally incapacitated, notwithstanding the fact that the cost of living is 70 points higher than pre-War. However, I abstain for the moment, but if there had been an opportunity of discussing the matter it would not have been disposed of so easily as the Minister has found it.

Question put, and agreed to.

Bill read a Second time, and committed to a Standing Committee.

Land Dispute, Skye

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

The amount of heat engendered at Question time to-day will justify me in bringing forward once again the question which was raised then. I suppose that some hon. Members will be surprised to learn that in Scotland we have any grievances at all. The land question is an old question everywhere, and specially so in Scotland. The conditions in the Highlands of Scotland are peculiar. In no other part of the country is there such a view taken with regard to land as obtains in the Highlands. They believe there that you cannot buy land. They still hold that no one has an absolute right to land. I believe that in this connection they have the backing of the law, because I am led to believe that even under the law of this country there is no absolute right to property in land. But, apart from the general principle, they hold that the land in the Highlands should belong peculiarly to the Highlanders. During the Clan system that obtained, and they believe still that land should be handed down from father to son. They do not believe that any plutocrat should be allowed to come to Scotland, buy land and clear off the people living there at the time. That is fundamental.

That is behind every question of land in Scotland. It is essential to realise that before we discuss the general principle.

To come to the essential point before the House at the moment, the great ambition of every Highlander is to have a piece of land to call his own. It has become a kind of obsession there. For years this clamant cry has gone forth for land. It has been intensified, as the years have gone on. A great many men have raided land in the Highlands. They admit having broken the law because they could find no other way of getting land. It has happened over and over again that the only way to get land in the Highlands is to break the law. Some time ago in this House I referred to Tiree. In 1918 six men from Tiree raided land. They were sent to gaol for doing so. A great agitation arose throughout Scotland. These men, when released from gaol, had a triumphal procession through Oban and went back to Tiree to the very land which they had raided, and they got that land after having gone to prison for it. Time and again it has happened that men have gone on to land, have been imprisoned, and then have got that same land again. I put it that that would not engender any respect for law in this country, but that is what has been happening.

In 1913 the Board of Agriculture acquired certain pieces of land in Skye from Mr. Thompson, who was then the landlord. That land was to be broken up into small crofts. The land was not broken up. In 1914 the War came and the men now in gaol went across the sea to fight in France and Flanders. While they were away the land changed hands and the Board of Agriculture handed back this very land now in dispute to the owner for sporting purposes. The men had not been notified by the Board of Agriculture that such a change had taken place. When they came back they expected that they would go back to Skye and get the land which had been promised years before. These men are now in Calton gaol because they trusted the word of the Government in that respect. They did not know that an interdict was granted against them. They admit that in December last they occupied land on this gentleman s estate. At that time they were told that they were occupying part of the home farm—let me say, a bogus farm. It is true that from the chimneys of the mansion house their crops could be seen, and so they agreed to move three miles away so as not to be on the home farm. The home farm moved three miles with them.

I do not blame the Under-Secretary for Health for the answer which he gave to-day. The Government are exploiting his popularity in getting him to answer for them. He has got their words to-say, though he is not responsible. Those who know him, as we do, respect him very highly. The real person to attack is not here. The Lord Advocate has not yet found a seat and when last seen was making for Scotland. So Casabianca was left alone on the ship to defend the Government. I might have called him the scapegoat of the Government, but the scapegoat in the old days had a very tragic fate. Still, here he is taking up a very bad case. He is the advocatus diaboli who has to defend this objectionable standard. He said that these men occupied the Home Farm. That is not true. They had occupied it and moved three miles to be out of the way, and the Home Farm moved with them.

This is part of a deer forest and the owner is a London plutocrat who goes to Skye for about two months of the year. The men who have seized the land are men who live there all the year round. These men were summoned to Edinburgh. How was it possible for them, men without any financial resources, to put on their coats and go from Skye to Edinburgh? I am not a legal luminary, but I do think that the Sheriff's Court in Skye might have been sufficient to deal with this case. A decree was given against them for contempt of court for not going to Edinburgh. Every day in the Courts we have decrees given against defendants, which decrees cannot be obeyed For instance, a man is ordered to pay a certain sum and he cannot do it. Is that contempt of court? The same thing applies here. These men are not guilty of contempt of court. Their agent told the Judge that had they been supplied with the means to go to Edinburgh they would have gone at once. Last Saturday these men were sentenced in Edinburgh to two months' imprisonment. The men have no fixed employment; they do not get the dole. They are unable to procure food for themselves and their families except by cultivating land. We talk about the King's Roll and about the treatment of ex-service men. Earl Haig said that the treatment of the men was a scandal. Not only are they ex-service men who are denied employment, but they are put into gaol for endeavouring to work a piece of derelict and idle land. The Government are to blame. No wonder a tempest of fury has risen in Scotland. Even quiet, east-windy, west-endy Edinburgh has shown enthusiasm for these men. They went in a triumphal procession from the station to the hotel at which they were lodged. When they went to gaol they went in taxi-cabs, accompanied by a parish minister. That shows that they are not in any sense criminals. They are all ex-service men, and all except one have been wounded and disabled in the War, and, therefore, are unfit for emigration. I will give their names:—

Alastair MacKinnon. This man is married, with a wife and two children. It is said that the landlord has stated that there are too many children to be near a deer forest.

Alexander Robertson. Married. Has three children.

Alexander McKinnon. Served during the War in the Argyll and Sutherland Highlanders, a regiment famous throughout the country. They were men of this regiment who formed part of the company on the "Birkenhead" when she went dawn. Men of the regiment were at Balaclava, men of the regiment bore the brunt of the fighting in our wars throughout the last century, and the regiment distinguished itself in the Great War. This man had part of his face blown away in the Great War.

John Nicholson. Served in the Navy. Wife and two children. Was disabled in the War.

John Grant. Applied many years ago for a small holding and was refused, but came back from the Army full of hope and enthusiasm. He is still refused a holding, and is now in gaol.

Donald MacKinnon. A man of 47 years of age, a perfect specimen of manhood before he lost his arm at La Bassèe. Took part in the third battle of Ypres and the Passchendale battle, fought at Cambrai and Arras, and lost his arm at the La Bassèe Canal. This man with one arm is now lying in gaol.

These men are not ordinary criminals. There are hon. Members on the other side of the House who agree with me in what I am saving. There are Members of the House who led these men in the War, and Members who fought side by side with them. Obedience to the law meant starvation to these men. There are two laws involved here, one in favour of the tenant and one in favour of the landlord. When the one is broken immediate action is taken. When the other is broken, and broken for years, nothing is done. In 1911 an Act was passed which said that whenever the Board of Agriculture were convinced that there was a demand for land and the land was available, they were bound to begin land settlement. Is that law to be repudiated and ignored? The other law is in favour of the landlord. I maintain that the law which says that land shall be cultivated is of far more importance than the law which results in contempt of court if men cultivate land.

I have spoken with some restraint, I have no desire to make party capital. I belong to the same race as these men and this affair affects me very keenly. I am a Highlander and I shall not sit here and see these men suffer in gaol without raising my voice against their treatment. I am assured that every Scotsman in this House is with me in the matter. I challenge the Under-Secretary for Health for Scotland to go on any platform in Scotland and defend this action. He cannot do it. Throughout Scotland at the moment there is a clamant cry for these men to be liberated. The other day the ministers of Scotland approached Lord Novar on the question, and he promised some amendment. I appeal to the Government to do something. These men have been long enough in gaol. I put it, that one day in gaol to these men is a very serious sentence, for they are not men who are used to imprisonment. They have never seen the inside of a Court. Some of them have been three journeys by train in their lives. They went by train to France and Flanders; they came by train and boat home again to Skye; they go back by train, at the King's summons again, but to prison. Is this to be allowed to go on? We are putting the question forward in this House constitutionally. We are putting it forward to you mildly and moderately in the first instance, but unless we get this thing done in this way we shall have to try other methods. This is capital for us if we used it. I could ignore the subject here and raise it throughout Scotland, but I am not doing that. I am bringing it to the Government here, and am appealing to them to do this. We do not wish to exploit the question at all, and I appeal to the Under-Secretary for Health to do something of this kind, because he may be assured that he will have the support of every Scotsman, of every ex-service man, and I am sure of all the Members of this House.

I apologise to the hon. Members who sit opposite for intervening in a debate in which they can show greater power, eloquence and, perhaps, greater enthusiasm and patriotism than I. I have listened with interest, and with very great sympathy, to the speech of the hon. Member for Clackmannan and Kinross (Mr. Weir). I quite agree that this question which has arisen is one that stirs the hearts of every Scotsman in this House. It is an untoward occurrence and one for which we would, if we could, find some remedy. I am sure hon. Members will believe that I feel the harrowing circumstances of this case as strongly as they do, even though I am compelled on some fundamental points to differ from their political economy in this matter. As I have listened with respect, nay, more, almost with admiration to their speeches, I am sure I shall be forgiven if I enter quietly into an argument of this case in its economic aspect. I remember 15 years ago taking part in the discussions upstairs, which were very keen and animated, about these Land Acts for Scotland, interference with landlords' rights, and the arbitrary fixing of rents and interference with contracts in the name of some benevolent aspiration. We fought then, not because we did not wish to spread the occupation and possession of the land as widely as we could, but because we thought that, in the interests of the tenants as well as of the landlords, something like a preservation of contract and observance of rights of property was really called for. This may be adverse to the view taken by hon. Members opposite, but I am sure I can appeal for their indulgent consideration of what I say. My difficulty and the difficulty of those who agreed with me about this arbitrary and compulsory taking of the land, the compulsory dividing out of the land, and the fixing of the terms of the contract, was that it seemed to us difficult and dangerous because, in the long run, we thought the economic laws would assert themselves and that difficulties would arise. Is not this one of those specimens of socialistic and communistic legislation which some hon. Members opposite ardently and honestly desire, but about which I feel great difficulty, not because I would deny any right to spread property widely, but because I am afraid that those economic laws are so strong that eventually they assert themselves? I foresaw that, when once you began to establish these small holdings and to divide up property according to some rule of your own and not in accordance with the supply and demand of the market, or the free operation of purchase and sale—and I think I was right—it would never be possible to stop at any particular point in that kind of procedure. Difficulties will assuredly arise, and you must then act in an arbitrary way to get over them. Instead of free purchase and contract between landlord and tenant, you establish a bureaucracy. I believe the evil of this land system was that Board of Agriculture in Edinburgh. We prophesied evil from it, and it has worked far worse than we prophesied. I think the experience of bureaucracies is that they are apt, not to take a large view, but to establish rules and lines according to which they act, and I oppose these arbitrary rules. I have looked carefully into the budget of these small holdings in Scotland. It is a pitiful story of wasting public money.

On a point of Order. May I ask whether we are discussing the question of Skye cottars or the whole question of holdings in Scotland?

The question before the House is that the House do now adjourn. The discussion is not confined to the question of whether we should go away or not, but all matters of public interest can be raised.

May I ask your ruling as to whether it is not usual on the Motion for Adjournment for the Debate to be confined to one topic?

It is desirable that there should be a certain sequence of discussion, but it is not in the power of the Chair to enforce it.

I think hon. Gentlemen opposite will consider that I was discussing the question very closely, and I do not think the hon. Member for Montrose Burghs (Mr. Sturrock) contributes either to the quickness or the courtesy of Debate by his interruptions. I was pursuing an argument to which I had close attention, and I am grateful to hon. Members for it. I am not going to be irrelevant. I say you are bound to interfere with this unwholesome Government by arbitrary rules under a bureaucratic guidance. I do not think these small holdings ever did or ever will work, or that they are a sound or proper plan for dealing with the great land questions. Now we come to the question of ex-service men who are dealt with. No one can have anything but one opinion with regard to our duties to these ex-service men. We are bound, not only to be generous, but to be lavish in our recognition of their services. I would break all economic rules, and I would not be tied by anyone on that, but what did we try to do when we went to deal with these ex-service men to whom we were indebted so deeply for our very life and the preservation of our nationality? We drove them into this bereaucratic system of email holdings. I would far rather that the Government had taken it upon themselves to purchase estates and to set these men on free terms on those estates than sweep them into this network of holdings, guided by this Board of Agriculture in Edinburgh, with all its narrow bureaucratic views. That free gifts is what we want, and if we had done that we should have had great gratitude from these men. Let us remember what we do when we try, not only to interfere with economic rules as between landlord and tenant, but when we try to create rules of a new sort, to regulate the free life of agriculture.

I say plainly, that once you enter upon that path, once you establish these smallholders in their holdings under the rules you have yourself laid down, under bureaucratic guidance which you have established and under a special law which you have instituted, then you are bound to follow it out to the end. If they fail in their tenancy, you are bound to take your share of the responsibility. You cannot establish the smallholders and then when they fail say: "We will wash our hands of you." You passed an Act of Parliament to make these men smallholders; you established a bureaucratic administration and now that they have unfortunately come to grief you cannot relieve yourselves of responsibility. When you established these men on the land in this way, you assumed a responsibility which you have no right to attempt to throw off because they happened to be unsuccessful. You have driven these ex-service men into the Small Holdings Act. They have infringed the law, consequently they have come up against the courts. No blame attaches to the courts of law. A court of law is bound to enforce the law, and bound to send these men to prison if they break the law. But I tell you that if you do your real duty to these ex-service men and if you thought —I doubted myself whether it was wise —that the best thing was to establish them on the land, then, having established them upon the land, you should take the whole responsibility for keeping them absolutely free from any possibility of interference with the courts of law or any chance of being entrapped into breaches of the law.

We have been brought to this position by unfortunate legislation and by trying to discharge our debt to these ex-service men by bringing them within the scope of that unfortunate and erroneous legislation to which I have referred. Now you have got to deal with the situation. These men cannot stay in prison; they must, right or wrong, be released even if there has to be an Indemnity Bill for them. I am sure my hon. and gallant Friend the Parliamentary Under-Secretary to the Board of Health for Scotland feels exactly as I do; that the continuance of these men in prison a week hence is not to be contemplated as a probability or even as a possibility. I do not wish to condone errors, but I ask that an effort should be made to keep these men out of the meshes of these legal difficulties. Above all, I think once this thing is cleared up, it would be well to restore these men and to let them have their chance of getting small holdings. We should sweep away administrative restrictions. I do not think that my noble Friend the Secretary for Scotland or my hon. and gallant Friend the Parliamentary Under-Secretary have feelings different from mine on the subject. Whatever may be the administrative difficulties I am quite sure they will agree, in their own hearts, that this is what they would like to do. I ask the pardon of hon. Members opposite, who can speak with more effect and force than I, for interfering in a matter which they have taken as their special province. Let me excuse myself on the ground that I have-many hundreds of constituents in those islands, with whose aspirations I certainly agree, and I would be false to them if I did not express, while doubting the economic soundness of all this sort of legislation, my real and heartfelt sympathy with the cause which they have at heart.

It was only on Sunday last that I went to see the six men, on whose behalf I am very glad to associate myself with my fellow countrymen in seeking some redress. I saw them in the Calton Prison and talked to them, and I admit that possibly the Court was justified in sending them to prison. [HON. MEMBERS: "No!"] They had broken the law of the land and the Court possibly was justified in sending them to prison, but I say that their going to prison is really the fault of the administration of the Scottish Office. These men went out and fought for us in France and elsewhere and, as graphically described by the hon. Member for Clackmannan (Mr. Weir), they were wounded, one being without an arm and the other wounded in the head. They believed what the Government said, namely, that provision would be made for ex-soldiers who wanted to settle on the land. They were wounded and unable to emigrate, and surely a Government which is desirous of settling men on the land should jump at the chance of taking those who want to go on the land. We have far too many men working in industrial centres and our efforts should be to get more people on to the land. Here are people in the Highlands who desire to live on and to cultivate the land, and everything should have been done to assist them.

I do not blame the present Government so much, but I do blame the past Govern- ment, who established the administration of the Board of Agriculture in Scotland, for not being more wide-awake and looking further ahead in their arrangements for the settlement of ex-soldiers on the land. It is perfectly clear that something must be done for these unfortunate men who are now in the hands of the law. I suggest that some special effort should be made to overcome the rule which was laid down by the last Government whereby these men are automatically ruled out of getting holdings. Considering that these men have heretofore lived blameless lives and have been wounded in the cause of the country, they should be pardoned for their past and helped in the future. The example of these six men should not be lost. I think we ought to try to avoid further occurrences of this kind, and if my hon. and gallant Friend could give the necessary instructions to the Board of Agriculture in Scotland to speed up this question of land settlement for ex-soldiers, it would do a great deal to do away with that mistrust of the Government which so largely exists in the Highlands of Scotland.

Let us not forget this, that in this particular case these men started to occupy land near the mansion house, and when it was pointed out to them that this land was too near, and, therefore, interfering with the amenities of the mansion house, they immediately moved to land three miles away. They broke up land which was purely deer forest land, and, therefore, they did everything they could within their power to assist the owner of the land, and it shows that they had some consideration for the owner. I venture to think that if one of the old landowners in Scotland had been the owner of the land, we should have heard nothing of this case, but, be that as it may, I suggest to the hon. and gallant Member, who, I know, is as much in sympathy with these men as I am, that he can do something to get over the particular difficulty in which these men, through their wrong action, I admit, from a law point of view, find themselves. I think he will possibly avoid further difficulty in future by giving out some sort of declaration that these ex-soldiers who are waiting for land in the Highlands will have their desires met in the very near future. [An HON. MEMBER: "Immediately!"] There are administrative difficulties which, I think, prevent immediate action, but I think the Board of Agriculture in Scotland have been very dilatory indeed in dealing with the promises of the Government given out in 1918 and 1919. As an old soldier, who saw these poor, unfortunate men in prison, I hope something will be done to get them out of a very great difficulty.

There are two points that I wish to make in connection with this matter, and those two points are, first, that we should have the release of these six men from prison, and, secondly, that we should have an inquiry into the position of land settlement in the Scottish Highlands. I was interested in what was said by the right hon. Member for the Scottish Universities (Sir H. Craik), and I think he did well to point out the difficulties that there are at the present time, and that this incident is but one of a series of incidents that happen from time to time when men in the Highlands, face to face with starvation and with the impossibility, as it seems to them, of getting a small holding, at last begin to break out a piece of ground, and then find themselves in the clutches of the law. We have got to devise some means of putting this matter right once and for all, and I would press upon the hon. and gallant Member representing the Government that he should put before the Secretary for Scotland the desire, on the part of the whole of the Scottish people, for an inquiry into this matter.

There are a good many Scotsmen in England, there are a good many Scotsmen in London, and there are a good many Highlanders who are resident in the different parts of Scotland, while in every Scottish city there are Highland societies representing the different parts of the Highlands, and I am confident that the whole of our country at the present time is behind those men, because it understands why they are in prison. Personally, I think perhaps the Scotsman, and especially the Highlander, has too great a respect for law. Those Highlanders are men who have the most wonderful respect for the law, and those men are in prison to-day, not out of any contempt or any willingness on their part to set aside the ordinary laws of property, or anything like that, but they are there out of sheer desperation. I think we have also to take into account that it is not enough to release them simply, and then wait on the next case coming along. During the recent holiday I visited one of the neighbouring islands, the island of Lewis, and there you have precisely the same situation. You had it in the island of Lewis before this case in the island of Skye. You had those people, with very great respect for the law, and yet they are brought within its clutches, and it is only by our getting an inquiry into the working of the Small Landholders Act, 1911, and the Land Settlement Act, 1919, that we are going to make any progress towards the settlement of this business.

I do not know just exactly how far I might be in agreement with some of the things that were said by the right hon. Member for the Scottish Universities, but I do know this, that this country was grateful for the assistance that came in the hour of need with regard to armed forces during the Great War. I know that the country was grateful that from those islands and those Highlands of Scotland there came sturdy Highlanders to take their part in the great struggle, and it is not sufficient, to my mind, to look at this thing altogether from the point of view as to whether these men would not be better to emigrate to other parts of the Empire. We have got to have these lands rearing a strong, healthy race. You cannot have a strong, hardy race in your towns and cities unless there are also in the rural districts people of strong physique, people engaged in agricultural pursuits. Those parts of our country are parts which, I believe, will repay a great deal of attention on the part of the Government, and I would like to press upon the hon. and gallant Member who represents the Government in this matter that he should give us some satisfaction that we are going to get an inquiry. At the present time the question of trawling is being considered, and it is a matter very cognate to this matter of land settlement, and I think it would be to the interests of the whole community if the Committee were extended so as to bring the whole question of the Highlands and the islands of Scotland under review, in order to get at the wishes of the people and to do something on their behalf.

On the question of the release of the men, I do not think there will be much sense of honour in our country if these men are allowed to lie in prison. I can say this, that having been there at all will remain as a stigma on these men's own estimation of their lives. I was greatly struck when I was in Lewis with the case of a man there who, for some technical offence, spent one day in prison in his youth. He is now 80 years of age, but this one day's imprisonment rankled in his mind, and he felt a certain sort of shame about it even as an old man, and in the fact that he had got into a prison at all. I want to appeal to the Government to treat this matter with a broad vision; not to regard it simply as a matter of these men in prison, but as a matter of people who have been hungering for a small holding, for a piece of land of their own, and who have waited so patiently for it.

10.0 P.M.

Figures that I have got from the hon. and gallant Gentleman the Under-Secretary of Health for Scotland to-day show that there have been 461 applications of ex-service men in Skye for small holdings. 134 of these have been withdrawn because these ex-service men despaired of ever getting anything under the scheme. We are told that 83 have been settled—83 out of 461 applications! If you take that rate of settling the men upon the land it will take 20 years or more to settle the 460 applicants. In 20 years there will be so many of them not needing a settlement under any Government scheme! They will have got six feet by two feet in the churchyard. I appeal to the Government not to have regard to past policy or the method of administration of the Liberal Government that preceded them. Here is a great opportunity for the Government to show that they are interested in the welfare of these people of the Highlands and islands, that they are big enough to put aside this wretched edict for which the Liberal Minister was responsible. We expect we are going to get these men out of prison. We expect we are going to get an inquiry into the whole matter, so that the House will not be pained with these scenes occurring again and again and revolting the sense of Members of this House. You have to-day one man in prison, a man that has lost his right arm. He is in prison because, in order to avoid starvation, he sought to use the remaining arm to cultivate a small piece of land. During the Great War you had posters displayed everywhere throughout Scotland; posters which showed a beautiful Highland glen, and which showed just such a piece of country as these men would like to have, and underneath the picture were words like this: "Is this worth fighting for?" They went from their glens. They went from their Highlands and islands, and to-day they cannot get a small holding in their own country! I hope the Government is going to take a wide point of view and is going to make it impossible in the future for ex-service men or any men anxious to serve their own country and anxious to give the best service possible to the community, to be brought into this humiliating position. I hope the Government will treat the matter from a broad point of view and give us full satisfaction.

It is, I know, generally the case for an English Member to apologise when he starts speaking on a Scottish matter. I do not. I remember the last time I mentioned Scotland it was not very well received by hon. Members opposite. I hope what I am going co make to-night will not cause the trouble my remarks did on the occasion to which I refer. I was surprised—if with very great deference I may say so—at the lack of understanding that that hon. Gentleman the Member for the Scottish Universities (Sir H. Craik) showed in what he said. We have heard a great deal about the hard-headed Scot. As a pure Englishman speaking on Scotland may I say that I believe, a Scotsman has more sentimentality in him than I think has the average Irishman or the average Englishman. The trouble in the Highland is that the settlements that you are dealing as a matter of business with hard-headed men is in reality a matter of pure sentiment. That sentiment took these men from their homes to France and again from their homes to prison! The whole thing is a matter of sentiment. It is no good telling these men that it would be a great deal better if they were to emigrate and start a small-holding in Sussex or in Canada. They much prefer to starve, or to carry on in a state of semi-starvation, in the land of their fathers. And, after all, it is a personal matter. If they wish to starve, why should they not? In this matter, however, it seems to me that we must endeavour to look, in order to be just from the point of view of the other man. Deep down in the heart of the Highland Scot is the feeling that the land does not belong to the laird, but belongs to the clan and is administered by the clan for the benefit of the clan. That sentiment unfortunately has been upset by law.

The House has listened to the excellent speeches of the hon. Members who opened this Debate, and has noted the extraordinary moderation with which they put their case. I wish I could agree with the hon. Member for Clackmannan (Mr. Weir) that the hon. and gallant Gentleman who represents the Scottish Office has a bad case. I know perfectly well that he has an absolutely unanswerable case, for he is fortified by law, by precedent, and by everything else. It is a, case of law and not what has been called one of vital personal interests. I quite agree that the case is hopeless. These men have broken the law. They have set the law at defiance. Not like the Home Secretary, whom we heard about yesterday; not like him, who thought he was obeying the law. They knew they were breaking the law, and that they had no excuse from the legal point of view. The law must be vindicated.

That has been done in the case of the Home Secretary himself, who has had to appear before us in a white sheet and have his conduct discussed, and may I say to hon. Gentlemen opposite that, if he had taken up a defiant attitude, and had not acknowledged his fault, and done the best in his power to remedy it, they would have been a great deal harder on him than they were. We, and those men we feel for, have, I am afraid, got to take up the same attitude. If we once admit their claim possible, the settlement of land in Scotland would become absolutely impossible, because if McDowdall can jump a claim on Mr. Thompson of Londonland, there is no reason why McPherson should not jump McDowdall's claim. Much as we regret —and I very much regret it—I am afraid these men and their friends—and I appeal to their friends, must take up a reasonable attitude, and acknowledge the supremacy of the law. Whether he be the Home Secretary or not, the law must be obeyed. I am certain from what I know of the hon. and gallant Gentleman the Parliamentary Under-Secretary of Health for Scotland, that there is no man—and I say this- with knowledge of him—who feels the position of these men more than he, even more than any Member opposite, because he feels that, after all, he is in a way responsible for them.

I agree with every word the right hon. Gentleman the Member for the Scottish Universities (Sir H. Craik) said about placing farmers, and especially Highland Scots, under the heel of bureaucracy. It is a form of government which a Highlander does not understand and does not appreciate. After all, I do ask leave again to reiterate, the appeal to these men—as they must do if any sort of settlement is made—to apologise to the law, because we must remember that it is out of the power of the Home Office to recommend clemency. They have not offended technically against the King's Law. They have offended against the dignity of the Court; they have refused to obey the order of the Court. The offence is not against the law of the realm, but is an offence against the High Court of Scotland, therefore it is necessary for them, if they are to get immediate release, to make their apology, and, as we would term it in London, to purge their contempt exactly in the same way as the Home Secretary had to in the House of Commons the day before last. [An HON. MEMBER: "They have done so."] If they have done so, I am sure my hon. and gallant Friend the Parliamentary Under-Secretary of Health for Scotland will bring every influence he-possesses to bear to get these men released as soon as possible, and we-must again appeal to his generosity, to replace their names upon the lists of smallholders. I am sure he will do all he can, and I am sure that hon. Members opposite, from the splendid way they have dealt with these cases, will see that it would be an utterly impossible position for these men not to make their apology. I am sure the hon. and gallant Gentleman will do his best to see that these men get the land they want, whether they will make a living there or not. That, after all, is mainly their own affair. Everyone on our side is most anxious to keep these smallholders safe, and I am quite certain that if these men will only admit they were in the wrong, the Court will take the most generous view, of what we feel in our hearts we would have done ourselves, if not more, and which I feel I would have done. I ask that the hon. and gallant Gentleman will extend not justice but mercy.

If I may, I will preface my remarks by apologising for any seeming discourtesy I may have appeared to have shown to the right hon. Gentleman the Member for the Scottish Universities (Sir H. Craik). I hope he knows he is the last man in the House of Commons I should wish to interrupt. I have listened to this Debate with very deep interest, because, like my hon. and gallant Friend the Member for Kirkcaldy (Sir R. Hutchison) and the Member for Argyll (Sir W. Sutherland), I had the privilege of meeting the cottars of Skye last Sunday afternoon in the gaol, and those of us who are Members of this House had an opportunity of going into their case very thoroughly. I feel most strongly moved to appeal to my hon. and gallant Friend the Under-Secretary to take immediate action in what is really the greatest scandal in Scottish national life that I have known since I thought of politics.

We have in this case men, most of whom, as has been mentioned, were wounded in the Great War. We have in this case men who applied to the Board of Agriculture years ago, as far back as 1919, for a settlement on the land for which they fought and bled. They took no unconstitutional action until years had rolled on, until they were driven desperate, until they realised that they were not eligible for emigration from the land, until they had realised that they had to do something or simply starve. What did they do? They first of all squatted on a bit of land near the home farm, and when they were told politely and firmly by some alien landlord that they were a bit of a nuisance there, they moved away 2½ to 3 miles from any point at which they could be of any service to anyone. Naturally—and I do not think the point arises on the legal side—so far as I can gather from the demeanour of the six men, they have no quarrel with the law whatsoever. They accept the punishment, but they are standing in on behalf, not only of their wives and families, but of men whom the; know are suffering from land hunger They accepted the judgment of the Court of Session. They went away three mile from almost any point of civilisation, am planted potatoes on 50 acres of land Naturally, the landlord sought an inter diet which these men disregarded. Being Scotsmen, and having put in those potatoes, they made up their mind to wait there in order to get the product thereof. They were summoned to Edinburgh and arraigned for contempt of court, and they have been in prison, and will remain there for two months unless my hon. and gallant Friend will take such steps after this Debate as will secure the immediate release of these men, and their almost equally immediate establishment on the land.

These men are persons who are completely interested in this question, and I think it is high time that some dramatic action should have been taken to show the country at large the fact that the Board of Agriculture has miserably failed to implement the promises held out to these ex-service men during the War. I trust that the Scottish Office will exercise its widest powers not only to absolve these men from the punishment to which they are being subjected, but that it will at once proceed to give them a legitimate settlement on the land for which they fought, and that we shall get rid once and for all of what I am sure is a very painful topic to every hon. Member of this House. I feel that on this question of land settlement for ex-service men there is no room for partisanship to be developed in the slightest degree. My hon. and gallant Friend the Member for Bosworth (Major Paget) spoke as an Englishman on behalf of these men, and the right hon. Gentleman the Member for the Scottish Universities (Sir H. Craik) developed the same argument, and in fact all parties in this House appeal to the Scottish Office to do all they can for these men. I hope we shall see some sort of vindication of the action of these men which they have undertaken for the benefit of their fellow men.

I think it is our duty to endeavour to arrive at the exact reason as to how it comes about that these men are in prison. The history of this case is a very short one. The landlord applies to the Court and gets an interdict. The Court in Scotland has always been very careful in regard to civil proceedings of that sort to lay down that before criminal consequences such as imprisonment follow, it is necessary for the owner to get the concurrence of his Majesty's Advocate for Scotland. If a breach of the law has been committed by disregarding the interdict of the Court, it is laid down that the representative of the Crown should have an opportunity of deciding whether or not he would give his concurrence with the decision taken by the person who obtained the Order of interdict whether in the absence or the presence of those against whom the complaint is made.

There was therefore a form of procedure under which the Lord Advocate could have refused his concurrence in this particular case. But he granted it, and the matter came before the Court. When the case was called the defendants did not answer. They had not been able to attend. An order was consequently issued for their arrest. They were brought before the Court under custody. The judges had the option of either reprimanding them, or fining them, or sending them to prison. They sent the men to prison, believing they had committed an offence against the Court. It is a case for the prerogative of the Crown. We are told that the quality of mercy cannot be strained. These men have admitted their fault; they have endeavoured to condone it by apologising, and I say the Crown should exercise its prerogative. Let that be put in the forefront. If they have committed an outrage they have been punished for it; they have admitted their offence. They have—

I do not wish to interrupt my hon. Friend, but I should like to know if he is bringing out new facts. He says that these men have apologised; that they have withdrawn from the position they took up. I am very anxious to be informed on what authority the hon. Member makes that statement.

Can the hon. Gentleman give me his authority? I am anxious to be fully informed of the facts. What authority has he for his statement? It is important as regards my reply.

I understand these are the facts. The hon. and gallant Gentleman can ascertain for himself whether they are correct or not. The position is this—

Is it the fact that the hon. Gentleman has no authority for the statement?

It is all important for the purposes of this discussion to know whether these men have withdrawn from the position they took up. The hon. Gentleman said that they have. I am anxious to have his authority for that statement.

It is not a question for the Law Officers. It is not a matter of legal opinion. It is a matter of information.

But would it not be within the knowledge of one of the Scottish Law Officers?

Is it not a fact that Mr. Morton, K.C., speaking for the men in the High Court, expressed, on behalf of these men, their regret?

But I understood from the hon. Member for Montrose Burghs (Mr. Sturrock) that they did not in any way resile from the position they had taken up—that they have come into conflict with the law, but that they do not, at present, withdraw from the position they have taken up. I think my hon. Friend the Member for Kelvingrove (Mr. W. Hutchison) will see how different this is from the case he was stating to the House.

I have no wish to misrepresent the position. What I endeavoured to express, though I may not have expressed it in proper language, was that these men have said, "We have committed a breach of the law, and regret that we have done so." That was all that I meant to say. I said that the Court should have taken, and could take, this circumstance into consideration, even if they had broken the law of the land, and I say that, having admitted that fact—

I only wish to point out that the Court cannot take action, obviously, on a man's saying, "I regret that I have committed contempt of Court," if the individual persists in the contempt. The prerogative of mercy does not arise in such a case. I have the strongest legal opinion that if an individual persists in contempt of Court it is not a matter in which the prerogative can be exercised.

I am not differing from my hon. and gallant Friend in his interpretation of the law, nor do I in any way desire to misrepresent the case, but I endeavoured to show that these men, who are ignorant men, expressed their contrition for what they had done, and I said that that was an element in the case which ought to be considered. I do not want to put it any more strongly than that. I used an expression which my hon. and gallant Friend interpreted in a wrong way. These men, having made application years ago, and their application having been refused, have broken the law. They know they have broken the law, and they have expressed contrition, so that they are not in the ordinary position of the man who is up against established law and order, and it is from that point of view that I would like the House to regard their case. I am not putting the case on the ground that they are ex-service men, as the hon. Member for Montrose has done. I do not think it is necessary to put it even so high as that, but there is no answer if you put it on that high ground of sentiment, of the Scottish soldier who has been fighting for his country. I wanted to trace the history of the case, so that we might understand exactly where we are in this matter. In saying that the men have expressed regret, I used that expression merely in the ordinary sense, and I am sorry that my hon. and gallant Friend has taken it to indicate that I have special information in this particular matter.

These men have been the victims of a system which has proved to be ineffective, as this system of small holdings in Scotland has proved to be, in fulfilling the desire of these people, who believed that they could make a living out of being settled on the land in Scotland. That, therefore, is quite germane to the position, and is a matter to be considered in connection with this case. Parliament has instituted a system by means of which these men can be settled on the land, and, that having been done, surely it is the duty of Parliament and of the Government of the day to see that these men get their settlement, and not to say that, because of some act wrongly done, with a wrong idea as to their legal position, these men should be scored off from all possibility of fulfilling their desires which the Government has led them to believe they were entitled to expect. No one knows much better than I do what the Highlands and islands of Scotland contributed to the War. Scarcely an able-bodied man was left in the Highlands and islands of Scotland; everyone rallied to the call of their King and country and Empire. If any leniency can be shown and the quality of mercy can be strained in any possible way it should be strained in respect of those who have fought and bled for their country.

I think the Undersecretary will realise our feelings in regard to these crofters who are languishing in jail. I am not going to discuss the legal point, because if we go into that we have all sorts of questions to consider. We have, first of all, to consider why these men found it necessary to take possession of the land. We have to find out when they first made application to obtain land. We have to ask the hon. and gallant Gentleman why it has taken the Government over four years to find land for these men and at the end cannot place them upon land, which makes it necessary for them to raid land in order to get that which they consider the Government is unable to give them. All these questions require to be considered. After all said and done, these six men are citizens of this country, and if this House makes a definite promise to them and embodies it in an Act of Parliament, they have a legitimate grievance against the Government if it does not implement the obligation placed upon it.

I join issue with the hon. Member for Montrose Burghs (Mr. Sturrock), who is not here, having vested his dislike to the situation that has arisen, and saying it is a grave scandal. I can remember in the last House, when I was raising the case of a number of men in Lewis who were in exactly the same position, the hon. Member was acting as a messenger boy for the Government that kept them in prison, and I am rather surprised at the heroics he adopts and the virtuous indignation he assumes at the position the Government finds itself in. He is now in opposition, and no doubt that has changed his point of view. I am rather afraid, from a question the Under-Secretary put to the hon. Member for Kelvingrove (Mr. W. Hutchison), he is not going to yield the point that we ask him to concede as the result of this discussion. He seemed to read into the hon. Member's words the meaning that these men had not merely expressed verbal regret at their action, but had also receded from their attitude and withdrawn their claim on the land they had raided. As far as my information goes, that is not correct. They expressed regret that they had been compelled to go to such extreme measures, and that is the extent of their regret. I take it the Government will not take up a position of charity towards thorn, if you care to put it that way, unless they are prepared to say that they will yield the land and will not again raid land.

May I point out what has acually happened? These men have gone upon what they consider to be precedents which have brought results. There have been raids before in Skye, Lewis, and North and South Uist, and there was a historic occurrence in Votersay in the lifetime of the last Parliament. In some of the nine cases where raiding has taken place the raiders were put in prison, but in all the cases they are holding the land they raided. Those men are now in possession of the land of which they took forcible possession. Under the Clause which the hon. Member has put into operation, and which was adopted by the late Government 18 months ago, the men who have seized the land in Skye are not now included, but the people who took part in the nine raids were not excluded on that account. They were given the land which they had raided, but these poor ex-service men, acting upon precedent, feeling that unless they adopted extreme action there was no likelihood of their getting the land for which they had put in an application over five years ago, took possession of the land; and now this Government, following upon the failure of the previous Government, puts the men in prison, not because they have raided the land, but because they did not attend the Court in Edinburgh. Why did not the Lord Advocate give instructions that the case should be heard in Portree, in the Island of Skye, in a place accessible to the men? Did he, on the application of the landowner whose land was raided, agree that the Court should be held in Edinburgh? Edinburgh is a considerable distance away, causing inconvenience for these men to travel there, and also meaning much expense for men who were unemployed and in semi-starvation, and who, because of their economic circumstances, have been compelled to take possession of the land. These are points which must be explained by the Under-Secretary.

There is a further point, and it is a point of substance to the whole community. Is it not more beneficial to the community that men who have served their country and who are prepared to live upon the land nine months in the year, and to cultivate the land and grow produce upon it for themselves and their families, should have possession of the land, rather than a man should have possession of it who spends nine months of the year in London, and only three months of the year in the Island of Skye shooting deer and shooting grouse? It is a pertinent question which ought to be considered, whether a man who was making profit during the War, and who bought the estate in Skye in 1915 while the War was going on, is to be permitted to retain possession of the land which was promised to these people for small holdings in 1913, promised to these men who fought for the land, men who have suffered disabilities because they fought for their country, and who are now put into gaol because, trusting to the word of previous Governments, they found it necessary to take forcible possession of that which they were promised in 1913.

These are questions that must be taken into consideration before we look upon the matter from the point of view of contempt of Court. Has this Government not shown contempt for the laws of the country, when it does not put them into operation? The Government ought to be gaoled, or the previous Government ought to have been gaoled, for contempt of the laws which they have been holding back, and which they ought to have put into operation years ago. I hope the Under-Secretary is going to take a wider view of this question and is not going to look at it from a narrow point of view of whether these men refused to obey the order of the Court to appear on a certain day in Edinburgh. If he is going to argue the case from that point of view, I can assure him that on no platform in Scotland where this question is known, and from no Scottish Member who represents a Scottish constituency, can he get support if he is going to narrow the question down to mere contempt of Court. The contempt of Court case is merely the result of a long series of actions or inactions on the part of individuals and on the part of two different Governments. The whole question is to be looked upon as a whole, and not one merely of contempt of Court on a certain day.

There are a lot of things that one might discuss. There are the powers that are given under the Land Settlement (Scotland) Act, 1919, which places upon the Board of Agriculture the duty of taking possession of land. The Secretary for Scotland has informed people that the Government has spent £3,000,000 in land settlement in Scotland. That is not true. I do not say that it is not true that they have spent £3,000,000, but it is not true that they have spent £3,000,000 in settling people upon the land. They have bought large estates for the purpose of putting people upon the land, but in buying those estates they have had to buy the mansion houses and the furniture in those houses. Neither mansion houses nor furniture are of any use to the men they are going to place upon the land. Yet enormous prices have had to be paid for those mansion houses and the furniture, which cannot be described as spent on land settlement. And all this is lumped together in the one sum of £3,000,000 spent on land settlement. Let us be honest with ourselves and the people of Scotland, and tell them that the main benefits of the money spent on land settlement have gone into the pockets of the landlords, who got as much money for the island as they paid for it, but retain the mineral rights.

They got as much as they gave, and they retain the mineral rights which they are working, and which gave them as much as they got out of the land. That is a good profit even for the right hon. Baronet, who has great knowledge of City methods. I do not want to deprive the hon. and gallant Gentleman of his time for replying.

The Debate can continue after 11 o'clock, and there will be plenty of time for replying.

At 11 o'clock the Debate will be interrupted to go through the Orders. Then there must be a fresh Motion for Adjournment, on which the subject can again be discussed.

Scottish Members, even on the other side of the House, are unanimous on this point.

You are an English Member, and we do not take any account of you. I would like to see the right hon. Baronet in the Island of Skye wearing a kilt. He would be quick to join the first raiding party that could be organised. I hope that the hon. and gallant Gentleman will take into consideration, not the one single point of contempt of court for which these men have been imprisoned, but will see if there is any way in which these men can be released at the earliest possible moment, and that the Government will move to secure their release. The failure of this Government and the last Government to put into operation the whole of the Land Settlement Act and the powers granted them under the Act of 1911, requires further consideration by this House, and I suggest that a Committee of Inquiry might be appointed to go into the whole question of land settlement in Scotland to find out how far the Acts already passed give the necessary powers, and how far these powers are clogged by the Board of Agriculture in placing men upon the land. The Committee should have power to recommend to this House some co-ordinating scheme whereby the placing of ex-service men or others on the land in Scotland could be speeded up, instead of our having only 83 men out of 431 placed on the land during a period of five years.

Not since I entered this House have I seen a finer spirit and a more humane outlook on a big political question than have, been exhibited on all sides to-night. From every Bench there seems to have been a keen appreciation expressed of the tragic —it is nothing less—drama that has been enacted in Edinburgh recently. Even the right hon. Member for the Scottish Universities (Sir H. Craik), who was somewhat critical of the general system of small holdings, was at some pains to express his personal sympathy with the poor victims who are now lying in Calton gaol. I would not like the right hon. Gentleman's denunciation of small holdings to go unchallenged. Small holdings in the Highlands of Scotland have never had a chance. In every country where small holdings have been given a chance they have been successful. Small holdings cannot succeed unless worked co-operatively. I agree that small holdings run under the bureaucratic, stupid and costly system of the Scottish Board of Agriculture are in no sense of the word small holdings at all; they are merely a pretext for spending public money in buying up estates at fabular prices, and for finding jobs for more or less useless civil servants. In Jutland, on land that is worse than the land in Skye—I know these people, for I have been there— they succeeded. They broke up the land and they are making a good living out of it. They are raising bacon and butter and eggs, and are able to send them over here and put them on our breakfast tables at a cheaper rate than is possible under our big farming system. It is not small holdings that are wrong. I could go into the Lindean case, the legal scandals and the landowning scandals in Scotland, which have soaked up the public money meant for small holdings, but not devoted to that purpose. That, however, in beyond the subject now under discussion. I agreed with the hon. Member opposite when he said that the real question to-night was that it is the supremacy of the law that is in issue. It is that, and if the hon. and gallant Member the Under-Secretary says that, I shall agree with him. But what law? Is not it the law of the land that the Government is compelled to supply holdings where there is a demand and where there is available land for them? Why simply bring half-a-dozen poor men who are driven to desperation after appealing to the Government to observe the law right back to 1919 and finding that the Government defies and breaks the law and that some members of the last Government sneer at the law—why hold up the fetish of the law after they have broken it?

There are many laws to be observed. There is a higher law than landlords' law, and than that passed by this House. There is the natural law. There is the duty of a man to provide for himself and his family, and not to starve in the midst of opportunities for producing food. It is the duty of a man to produce food, if he can, upon land that is at present producing nothing but idleness, uselessness, waste, and parasitism. It is not denied that this land that they broke up is deer forest land. Is there any Member of this House who says that is wicked, and that it is wrong to break up land given to deer forests in order to grow food upon it? Who will challenge that? For what are they in gaol? They are in gaol because they were summoned to go to Edinburgh and because they had not the money with which to go to Edinburgh. They were forbidden to go to the Court at Portree. They were ordered to go to Edinburgh because it suited londlordism that they should go to Edinburgh, They could not do so, and they have now been sent to gaol for two months. There is not a Member on any bench in the House who can say that that imprisonment is a Christian or a statesmanlike act, or that it adds to reverence and respect for the law in Scotland. You cannot do it. These men will come out of prison, the wounded men, the man with the one arm, and the man with the shot head. They are forbidden to go abroad—they cannot emigrate to Canada, or Australia, or New Zealand. You forbid them to earn their living abroad, and the hon. and gallant Gentleman and the Board of Agriculture forbid them to earn their living at home. You have scored them off your rota. They are not to be allowed to get a small holding. Will the hon. and gallant Member for South Lanarkshire tell us, when he speaks, what it is he proposes these men should do? If you forbid them to go abroad or to earn a livelihood at home, what do you expect them to do? What would the hon. and gallant Member, or any Member of this House, do? I know what I would do. I would break every law that any Parliament has passed that would prevent me having an opportunity to work for my livelihood. I appeal to the hon. and gallant Gentleman the Under-Secretary. I have known him for many years, and I know he has considerable sympathy with the poor and the down-trodden. I know he is a Scotsman and has some racial feeling for these men who are now in Calton Gaol. I beg of him not to rest his defence on some petty, footling, flimsy statement supplied to him by some twopenny Law Officer of the Crown. If it be the case that unless these men give a pledge that under no circumstances will they attempt to raise food in their native island, the Court's honour will not be satisfied and they must rot in gaol—if that be the defence put forward by the hon. and gallant Member by virtue of his office, it is not a defence which will stand to his credit personally in the days to come. If that be the defence, it would be more manly on his part and more statesmanlike and would make for a better feeling in Scotland, and, if you like, it would elevate the party to which he belongs in Scotland, that he should tender his resignation rather than play a card like that and raise a defence like that. Who is going to defend this system? There is no voice raised here to-night in defence of it. Yet these men rot in gaol. They cannot give a promise that they will never attempt to raise food. If they were out to-morrow they would require to go on raising food. They cannot get the dole; they are forbidden to do so. Some of them, I understand, recently had their pensions taken away. What is to be done? The onus is on the Government. The hon. Member for Kelvingrove (Mr. W. Hutchison) may be right when he says that the King's pardon will purge the offence or he may not be right, but I suggest that the Under-Secretary should intimate to the Government and the Cabinet that he will not be responsible for a continuation of this system in Scotland and, if he does so, I am perfectly certain that within 24 hours a Measure could be rushed through this House, if necessary, to stop this scandal.

I have a peculiar interest in this question. My grandfather left the Isle of Skye in 1798 to join the Gordon Highlanders and he never got back again. It is no new thing to the population in the northern parts of Scotland and the islands—

It being Eleven of the Clock, the Motion for the Adjournment of the House lapsed, without Question put.

Electricity (Supply) Acts, 1882to 1922

Resolved,

The remaining Orders were read, and postponed.

Land Dispute, Skye

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

I wish to resume discussion of the subject that has been before the House for the past hour or so, and I feel so strongly on this matter that I do not know how best to approach it. In view of the fact that on every side of the House there have been strong expressions of sympathy with the position in which these men find themselves, who are lying in Calton Gaol to-night, I should not like to say anything that would appear even to have a bad effect, and I am really more anxious to get the two things dealt with that have been raised from these benches than to make any strong personal points against the Government. In this connection, however, I should like to say that the present Government are not at all free from blame, so far as the failure to carry out land settlement in the Highlands and islands of Scotland is concerned, because this is not a new Government, nor merely a Tory Government. They were part and parcel of the Coalition Government that went out in the autumn of last year. However, I do not want to enter on that aspect of the question, but merely to add my voice to the expressions of sympathy that have already been given from all sides of the House, and, speaking as one who claims to have some direct personal connection with that part of Scotland, I want to assure hon. Members that there are no more God-fearing people in the British Isles than are to be found in the Western Isles of Scotland, and particularly in the Island of Skye. For over 100 years this island has been gradually depopulated. I remember reading with some pride that this little island, during the period of the Peninsular wars, supplied alone no fewer than 16,000 soldiers to the British Army. There was still a considerable number of thousands left on the island, and they were able to maintain themselves. Gradually, however, the population has become less and less, and it is a remarkable fact that the county in which the Isle of Skye is situated—the county of Inverness, the largest county in Scotland—has been gradually declining in population, as has been shown census after census. It is one-ninth of the total area of Scotland, yet the population is decreasing decade by decade. There is one section of the population in the county, and in the Highlands, however, which is growing in numbers, and they are the non-producers and those who live on the wealth that others make. There are sheep, and deer, and grouse, but not people.

I sincerely hope that when my colleague from Lanarkshire the hon. and gallant Gentleman who represents the Scottish Office comes to reply, he will be able to indicate to us that the clemency of His Majesty will be exercised immediately, and that these men will in the first instance be released and, secondly, that the Government will be prepared to set up a Committee representative of all sides of the House to make inquiries into the actual conditions obtaining right throughout the Western Islands and the Highlands of Scotland. This present matter is only for the moment: this is only an incident that has happened, but it can, and may, happen anywhere in the Western Highlands. There is no single county that has less population comparatively. I say it with all respect, for I suppose everyone loves the land of his birth, but I think no one can love their land better than the Highlander loves his. The lessened population is largely the result of landlordism. I beg the reflection of the Government not only to be prepared to recommend the immediate release of these men but to arrange for the Committee we suggest to be appointed to consider whether it would not be possible to introduce a system into the Highlands to enable the people to remain in possession of their land—of the land of their forefathers. The subject has been pretty well traversed on all sides, and I think we are all pleased that it has brought out the very best qualities of debate in the House of Commons.

I was unwilling to intervene before hon. Members had had their chance, because we had been at considerable trouble to secure this opportunity for the Debate. I ask the House to bear with me if a certain thickness of speech and a confusion of thought upset my speaking, as I have had nearly 40 hours' continuous work. In the course of this long Debate the House of Commons has shown that interest and sympathy which it feels in a Case such as this, and it has been said that the spokesman on behalf of the Administration is placed in a peculiarly difficult position, because it is necessary to point out that the legal points, although they may seem of little importance to us to-night, are of great importance in the general administration of the country. In the particular case before us of the ex-service men now in gaol for attempting to cultivate land, I beg hon. Members in all parts of the House to realise, that I myself, feel most keenly the position, in which I stand as one to some extent responsible for the position in which these men now find themselves. I accept that responsibility; I am hot inclined to shirk it. If, as was very well said by a Member on the other side of the House, I attempted to justify my position on some mere legal quibble it would be an unworthy justification and one which certainly I should not have the effrontery to offer to the House now. It is not absolutely accurate to say that these men are in prison because they failed to appear at the Court in Edinburgh. It is their case that they failed to comply with the Order of the Court. When they took that step from whatever motives, they realised what the result of their action would be; they are not complaining that they are in under duress, because of any technical quibble of the lawyers which has been worked to their disadvantage. They are taking a broad general position, and that is the position we have to consider.

I would point out that it is very necessary for us here and for those in Skye and in Edinburgh to realise the technical position. It is that these men are committed for contempt of Court—committed by a Court, in pursuance of an Order made by that Court. It does not lie within the prerogative of the Secretary for Scotland to interfere, because the Secretary for Scotland acts in the same way for Scotland as the Home Secretary acts for England. It is not the prerogative of the Secretary for Scotland to order release. The division between the executive and the judiciary has always been one of the features of our Constitution, and an Order made, in this sense, by the Secretary for Scotland would bring about a breach of the Constitution. It is not merely a matter of expressing regret because they happen to have come into conflict with the law. It is not merely a case of saying that they are sorry for the action which they have taken because they persist in it. If the men wanted to withdraw from the position which they have taken up I should imagine that the Court would find no difficulty in immediately setting them at liberty. This course has actually been taken by one of these men, because originally there were seven men affected. In March the Court ordered the men to appear. One man, John McArthur, did comply with the previous Order of the Court, withdrew from the land and his Counsel apologised to the Court on his behalf. It is not simply the case that this is a machine taking these men automatically into a court of law. When this apology was made by one of the men the Court acted accordingly. If I could in any way bring persuasive power to bear on hon. Members opposite I should ask them to consider whether it is not possible for them to make a move in this direction and see if they cannot persuade the men to resile from the position which they have taken up. In such a case, I should be only too happy to ask the Secretary for Scotland to bring the altered facts before the Court, and I am certain, as in previous cases, the Court would proceed to act upon the altered facts of the case.

Hon. Members ask next what is the action which the Scottish Office and the Board of Agriculture would take, and the action which the Government would take, because, undoubtedly, the responsibility must fall on the Government. If there has been delay, then it is for the Government to expedite things, and if there has been mismanagement, the Government ought to clear the matter up. The Government carry a burden which it is not possible for them to shuffle off on to any other body.

The case put forward so very powerfully to-night has made two main demands. First of all, there is a demand for a Committee of Inquiry, which I shall touch upon in a moment. There was a second demand. It has been said, very truly, that these six men have fought for their country, and although they have been guilty of an offence against the law, hon. Members ask, is it not possible to recognise the great services which they have performed. No hon. Member can fail to be impressed by appeals made under such circumstances. This I will promise to do—I put it before the House as a reasonable compromise— and I feel sure that it is a position which the House might very well accept. I will put it before the Secretary for Scotland —and I feel sure that he will accede to it —that these men should be restored to the list. I must, however, make it clear that discipline must be maintained in these matters. It is impossible and it would be unjust to other ex-service men, many of whom have been badly wounded and have performed just as great service and have military records as good and even more brilliant, to put these six men in a favoured position because of the particular action they have taken which is a breach of the law. Therefore, while I consider that these men, as ex-service men, should come before any man who is not an ex-service man, I similarly consider that they cannot take precedence over the other ex-service men who are at present on the list. Some punishment must be given. We cannot escape from that fact. You may say, "Why should any action be taken against these men? Why should they suffer for having taken the land?" For this reason: We are in the middle of settlement schemes in the Highlands, and if we once attempt to do what hon. Members suggest, if we admit that that is a principle on which land settlement should be carried out in the Highlands, then hon. Members will realise that there is no possibility of anything but a chaotic scramble all round.

I admit that the hon. Gentleman is placing a serious question before us. I cannot go into the whole of the details. I am simply laying a general proposition before the House. It is not merely these men who are in a difficulty as to living. The case is no less grave of scores of other men in the Highlands who have suffered that "hope deferred which maketh the heart sick."

I admit that this is a special case, but the hon. Gentleman is enlarging the Debate to a tremendous extent by, at this time of the evening, embarking on a general discussion as to how 400 odd men in Skye, who have applied for small holdings, have been living since 1918, and how they are going to continue to live. I must leave it to hon. Members themselves to consider that point. Let us be quite clear. I cannot hold out any false hopes in this matter. I want to be perfectly and even brutally clear in this caste. I do not wish any hon. Member to go away saying that I held out any flattering hope which subsequently terned into a rainbow of one kind or another. It is for these men to apologise to the Court if they wish to be released. If hon. Members can persuade them to do that, then I shall use every effort possible with the Secretary for Scotland to make sure that they are enlarged with the least possible delay from imprisonment.

The second point is the position with regard to small holdings. I have made an offer that we shall restore their names to the list, but they must come at the end of the list of the ex-service men, and not at the beginning, because, from the point of view of the other ex-service men who are in as serious a position, and have displayed even greater patience, nothing could be more fatal than to make them realise that all that they had to do was to raid land in order to be certain that they would immediately be given small holdings. In the case, for instance, of John McArthur, who was one of the men who raided this land, he obeyed the order of the Court and withdrew from the land, and it would be reducing administration to a mockery if he thereupon found that he had actually prejudiced himself in the eyes of the Board of Agriculture as compared with these six men who had not obeyed the order.

Now we come to the last general question, namely, the question as to a Committee of Inquiry, which was brought forward by Members in other parts of the House. On that I want to give just one or two figures. We have to-day, in the island of Skye, about 429,000 acres. The Board of Agriculture schemes comprise, in the area covered by their operations and those of their successors, 182,000 acres—over 42 per cent, of the whole area of the island. About 83 have been settled, and we hope to have 100 more settled this year in Skye. I hope to have a considerable acceleration. I am not satisfied with the acceleration, and I pledge my word to the House that I will do my utmost to see that it is increased. We have about 350 further holdings to create in Skye, which means very nearly an exhaustion of all the land available on that island. The necessity for preserving order while these schemes are being carried through will be self-evident to members in all parts of the House. Of course, I can sympathise with them when they say, "What is the use of waiting patiently in the queue if there is nothing to sell in the shop? What is the use of waiting if the Government is not providing any small holdings for the people who are orderly and are decently waiting for them?" We have this enormous acreage of 182,000, which we have to distribute in Skye. If we have to switch off from one scheme of development to another because raiding has occurred here and there, we prejudice the case of the law-abiding citizens as against the case of the men who, under admittedly great provocation, have broken the law, and that is a position in which I am not willing to place either the law-abiding ex-Service men or the administration of the Board which for the moment I represent. There are further points which in the exhaustion of a long Parliamentary sitting, I may have failed to bring before the House. I ask the indulgence of the House in this statement which I have made. I hope hon. Members are willing to accept it, and not merely to accept it here, for, after all, what happens to us in this House is of little moment, but to do their utmost to prevail upon these men in Edinburgh to come to some composition with us, to acknowledge their fault, to apologise to the Court and withdraw from this land on the assurance that we shall restore them to the list, and we will proceed as fast as we can with the settlement of small holdings in Skye.

Am I assured that if these men are willing to apologise their case will be speeded up, or will they have to wait two or three years? Can you give us any time limit?

I am not going to try to deceive the House. I shall accelerate the matter to the utmost of my power. I cannot give a time limit and you will acknowledge that I am not trying in any way to pull wool over the eyes of the hon. Member.

It being Half-past Eleven of the Clock, Mr. SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.

Adjourned at Half after Eleven o'Clock.