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Commons Chamber

Volume 165: debated on Monday 18 June 1923

House of Commons

Monday, June 18, 1923

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

Private Business

Mid Kent Water Bill [ Lords ],

South Staffordshire Mond Gas Bill [ Lords ],

Read a Second time, and committed.

Southern Railway Bill [ Lords ],

To be read a Second time To-morrow.

Oyster and Mussel Fishery (Seasalter and Ham) Provisional Order Bill (by Order),

Third Reading deferred till Thursday, 28th June.

Election Expenses

Address for Return "of the Expenses of each Candidate at the General Election of November, 1922, in Great Britain and Northern Ireland as declared to the returning officer, pursuant to The Corrupt and Illegal Practices Act, 1883, and of the number of votes polled to each Candidate, the number of polling districts and stations, and the number of electors."—[ Mr. G. Locker-Lampson. ]

Oral Answers to Questions

India

Franchise, Legislative Assembly

asked the Under-Secretary of State for India whether, in view of Lord Sinha's assurance of the 26th July, 1920, that the franchise for the Indian Legislative Assembly would be conferred on retired Indian officers of the Indian Army, the necessary steps will be taken to confer the franchise on these officers before the date of the next election?

Lord Sinha's promise of sympathetic consideration referred to the next revision of the franchise, which the Joint Select Committee recommended as a sequel to the Statutory Commission of Inquiry. The present amendments in electoral rules are in no sense a revision of the franchise.

That matter will not come on until the next revision of the franchise, which, as I stated in my answer, was recommended as a sequel to the Commission of Inquiry.

It would require an alteration of the franchise, which, in its turn, would require the authority of Parliament, and it cannot be considered apart from other questions which would require to be discussed at the same time.

White Children (Adoption)

asked the Under-Secretary of State for India if he is aware that in a large number of cases white children orphaned in India are adopted by natives and Eurasians; can he give any figures showing how many children have been so adopted during the last five years; and can he see that steps are taken to stop this practice?

I am not aware that there exists any large number of cases of the kind referred to by the hon. Member. The matter is not one as to which any precise information exists nor could figures be collected without great difficulty. I will forward copy of the hon. Member's question to the Government of India for their information and have no doubt that if any abuse in a particular case were brought to their notice it would receive their careful consideration.

Shakat Usmani (Arrest)

asked the Under-Secretary of State for India if he can now give any information as to the trial of the alleged Bolshevist agent, Shakat Usmani, at Peshawar, for alleged conspiracy in India; and whether the trial has thrown any light upon Bolshevist propaganda in that country?

This man has been arrested, but, so far as I know, has not yet been brought to trial.

Lala Lajpat Rai

asked the Under-Secretary of State for India whether he has yet any news as to the health of Lala Lajpat Rai, or can give the House information as to the likelihood of his release?

Information as to Lala Lajpat Rai's present state of health has been asked for from the Government of India by last week's mail. I am unable to give any information as to the last part of the question.

Elections (Candidates' Deposits)

asked the Under-Secretary of State for India whether, considering that a deposit of £150, or some Rs.2,250, is required from each candidate for Parliament in England, to be forfeited if the candidate fails to get the required number of votes, he can state upon whose advice a deposit of such a small sum as Rs.250 in the case of provincial councils and Rs.500 in the case of the Indian Legislature has been fixed as a condition for nomination for candidature in India; and whether the Secretary of State will reconsider the matter, in consultation with the Government of India, with a view to fixing a larger and more adequate sum?

The amount of the deposit was decided upon on the advice of local Governments, of the Committee of the Indian Legislature which considers amendments to the rules, and of the Government of India. My Noble Friend does not regard the amounts as inadequate, having regard to conditions in India, and does not propose to reopen the matter.

Loss of Steamship "Okara."

asked the Under-Secretary of State for India if he has considered the evidence submitted to him by the hon. Member for West Stirlingshire in support of a demand for an impartial inquiry into the sinking of the steamship "Okara"; if he is aware of the opinion on the subject in responsible quarters in India; and, with a view to allaying public feeling, will he institute an inquiry regarding the condition in which this ship was allowed to proceed to sea?

I have sent on to the Government of India the evidence sent in by the hon. Member. The Government of Bengal have decided to order an inquiry to be held. My Noble Friend has as yet received from India only a brief telegraphic report.

Will the Noble Lord press that this inquiry be conducted by an officer of the Board of Trade, seeing that the conduct of officers in the Indian service may be a subject of review?

I regard this question as of some importance, and I quite agree with the hon. Member that it is most necessary that there should be an impartial inquiry. This inquiry will be of the impartial nature provided for under the Act which deals with such matters. It will be set up by the Government of Bengal, and it would not be possible under the Act to have sitting on that inquiry a representative of the British Board of Trade.

Would any member of the Board of Trade be able to attend as a witness?

Certainly, if his evidence were admissible he could appear as a witness.

Would such an inquiry take up the question of large combines keeping some steamers continually in foreign waters so that they are not under Board of Trade control?

Civil Servants (Salaries)

asked the Under-Secretary of State for India whether, in view of the totally inadequate increase in salaries as compared with the increased cost of living that has been granted to Indian civil servants, combined with the low exchange value of the rupee, he will favourably consider the proposal that has been put forward to pay the salary of European Government servants in India in terms of 2s. to the rupee (instead of 1s. 4d. which at present prevails), pending the Report of the Royal Commission on the subject; and whether, in view of the fact that the passage to England is now 150 per cent. higher than in 1920, he will grant one free return passage to every European Government servant (including his family) of three completed years' standing?

Proposals of the kind indicated in the question have been put forward in memorials from Service associations which will be considered in due course by the Royal Commission on the Indian Services. I am not in a position at present to make any further statement on the subject.

Northern Rhodesia

asked the Under-Secretary of State for the Colonies whether the relationship of Northern Rhodesia to this country is that of a Protectorate only; whether instruments exist whereby His Majesty's Government becomes the competent authority to arrange an agreement with the British South Africa Company with regard to lands occupied at present by people who are not yet subjects of the British Crown; or whether it is proposed to submit any proposed arrangement to the paramount chief and native rulers of Northern Rhodesia for their consent?

As stated, Northern Rhodesia is a Protectorate and the natives are not subjects of His Majesty, but the position with regard to the land is not in any way affected by these facts. The answer to the last part of the question is in the negative, but I would refer the hon. Member to the replies given to his questions on the 13th June.

Are we to understand that the negotiations with the Chartered Company do not in any way concern the ownership of land in Northern Rhodesia?

I would not like to say that. The whole character of the concessions from Lewanika, and the attitude of the Colonial Office at that time has, of course, an important bearing on the winding-up of the Chartered Company's administration in Northern Rhodesia.

Are we to understand that the ownership of land is now under discussion with the Colonial Office, in spite of the recommendation of the Buxton Committee that it should be submitted to the Privy Council?

asked the Under-Secretary of State for the Colonies whether the British South Africa Company includes in its claims to the lands of Northern Rhodesia a claim to the commercial ownership of the native reserve areas and to either, or both, the surface and subsoil assets?

I would refer the hon. Member to the reply given to the hon. Member for Woolwich East on the 13th June.

Trans-Jordania

asked the Under-Secretary of State for the Colonies whether a treaty has recently been concluded between His Majesty's Government and the Arab Government of Trans-Jordania; whether the terms of it will be laid before Parliament; and when it is intended to bring it before Parliament for ratification?

The reply to the first part of the question is in the negative. The rest of the question, therefore, does not arise.

Has not some treaty, convention or agreement been discussed with the Arab ruler of Trans-Jordania?

Yes. We are discussing how His Majesty's Government can carry out their international obligations under the mandatory system, and how that can be reconciled with the utmost freedom of Arab administration in Trans-Jordania.

Kenya

Native Interests

asked the Under-Secretary of State for the Colonies whether the Kenya delegations visiting this country in order to make representations to His Majesty's Government are composed of officials, Indians, and settlers; is he aware that there is no delegation from the natives, and that they are also desirous of sending a delegation; and whether he is prepared to give to the native delegation the same facilities for stating their case as have been accorded to the other sections of the community?

The Kenya delegations include Dr. Arthur, who was specially selected by the missionary bodies in the Colony to represent their views in the matter of native interests and who has shown from the beginning that his attitude is entirely independent. The application for a native delegation to be received does not come from any authoritative body in the Colony, and my right hon. Friend the Secretary of State has not been able to approve of such a delegation. The hon. Member may rest assured that native interests are in no danger of being overlooked.

Am I to understand that the natives, who form four-fifths of the population of that country, are to be refused an opportunity of presenting their views themselves?

I think the Governor and the native Commissioners are fully acquainted with the native views, and those views have been conveyed quite clearly to my Noble Friend.

Is the hon. Gentleman aware that the natives have repudiated Dr. Arthur and that we have in this country perhaps the best native Commissioner that has ever been in Kenya, Mr. Ainsworth, and would not his views be taken in preference to the missionary, Dr. Arthur?

It is not a question of preference. Dr. Arthur represents the views not so much of the natives as the missionary societies, and that is the only ground on which he comes before us. The native interests are being very carefully watched and safeguarded. The people who repudiate Dr. Arthur are an insignificant minority.

Population

asked the Under-Secretary of State for the Colonies whether he can state the proportion belonging to British India, the Native States in India, and Portuguese India, respectively, of the 22,822 Indians and 2,430 Goanese in Kenya Colony on 31st December, 1921?

The census was taken on 24th April, 1921. There were then in Kenya 12,697 British Indians, 10,035 British-protected Indians, and 2,521 Portuguese Indians.

asked the Under-Secretary of State for the Colonies if he will state what proportion of the European males, numbering 4,801, in the Kenya Colony on 31st December, 1921, was British and what proportion foreign?

The census was taken on the 24th of April, 1921, and the number of European male adults then enumerated was 4,736. Of these 4,142 were British born, 280 were British South African Dutch, and seven were naturalised British subjects. The remainder, 307, were non-British Europeans.

Ex-Service Men (Land Settlement, Ireland)

asked the Under-Secretary of State for the Colonies whether he can state the reason for the delay in establishing the Irish Sailors and Soldiers Land Trust, as provided in Clause 3 of the Irish Free State (Consequential Provisions) Act; whether he is aware that the delay is causing much hardship to many ex-service men; and what steps His Majesty's Government intend to take in the matter?

In reply to the first and third parts of the question, the trust cannot be established until the necessary legislation has been passed by both Irish Parliaments. A Bill for this purpose has been passed by both Houses of the Northern Parliament, and a similar Bill was introduced into the Free State Parliament on the 13th instant. In reply to the second part of the question, I am not aware that any such hardship as is suggested by the hon. Member is being caused by the delay, inasmuch as pending the establishment of the trust, the provision of houses for ex-service men is being carried on under the Irish Land (Provision for Sailors and Soldiers) Act, 1919. If the hon. Member has in mind any particular cases, and will supply me with detailed information, I will, of course, give them the fullest consideration.

Is the hon. Gentleman aware that there are thousands of ex-service men in Northern Ireland who should have been provided with houses but for the failure of the Free State Government?

Is the hon. Gentleman aware that the original Act was passed four years ago to help ex-service men in what was then practically a hostile country, and is he aware that that Act is practically null and void; and will he see that every step is taken by His Majesty's Government to ensure that these men who served His Majesty's Government are looked after?

The Bills to set up the necessary body are going through both Parliaments in Ireland.

Are we to understand that the statement that there is no hardship applies only to Northern Ireland, but does not apply to the Free State?

Obviously there were great difficulties in what was a hostile country, and it is only recently that they have been able to get holdings in the Free State. It is true that they have not got so many as they should have got, but they have still got a considerable number.

Why has the Act not been put into force in Northern Ireland which in no sense can be considered a hostile country?

The Bill has been passed by both Houses of the Northern Parliament, but has not yet received the Royal Assent.

asked the Under-Secretary of State for the Colonies whether it has been found possible to make any progress with the scheme of resettlement and provision of land for ex-service men in the Irish Free State for which Imperial funds have been voted; has the Free State Government appointed its representative on the Commission; and, if through local hostility to men who fought for the Empire the scheme is abortive, can the money be used to assist the migration of and the provision of land for these ex-soldiers in the Dominions overseas?

In reply to the first part of the question, continuous progress has been and is being made with the provision of houses for ex-service men in the Irish Free State under Section 4 of the Irish Land (Provision for Sailors and Soldiers) Act, 1919, and of the money provided by Parliament for this purpose approximately £150,000 has been expended during the current financial year. In reply to the second part, the question of the appointment of trustees does not arise until the necessary legislation has been passed through the Parliament of the Free State; and a Bill for this purpose has now been introduced into that Parliament. I understand, however, that it is the intention of the Free State Government to nominate General the Right Honourable Sir Bryan Mahon as their representative on the Trust. The last part of the question is hypothetical; but I may say at once that inasmuch as a considerable number of men are already in possession of houses provided under the Act, there is no ground whatsoever for anticipating that the hypothesis will be justified.

I was asking about the provision of land, and the hon. Gentleman is talking about houses.

If the hon. and gallant Gentleman puts down a question I will find out the number of acres.

How many men have been settled on land and how many houses have been built in the South and West of Ireland?

I will get those figures if the specific question is put down. I will communicate with Dublin.

Irish Free State

Malicious Injuries (Compensation)

asked the Under-Secretary of State for the Colonies what sum of money has been advanced by the Irish Grants Committee to distressed Irish loyalists in this country against decrees or claims to compensation and by way of free grant or loan without security?

The amount advanced by the Irish Grants Committee to persons in this country on the security of decrees or claims to compensation is £85,813, and the amount of free grants or loans without security is £30,236.

asked the Under-Secretary of State for the Colonies how many claims for compensation for pretruce damage in Ireland have been dealt with to date by the Wood Renton Commission?

Up to the 9th instant the Wood Renton Commission had dealt with 11,058 claims.

To cases defended before the Commission but not defended before the County Court.

That does not arise out of this question. I was asked how many cases have been adjudicated on by the Wood Renton Commission, and my answer is 11,000, which is a very rapid rate of progress.

asked the Under-Secretary of State for the Colonies whether he is now able to inform the House what is the total sum actually paid in respect of pre-truce claims for criminal and malicious injuries in Southern Ireland which arose between January, 1919, and the 11th July, 1921, the date of the Treaty, estimated at approximately £10,000,000, for which the British Govern- ment and the Irish Free State Government are jointly responsible, in accordance with the terms of the agreement entered into between them; what is the total sum which has been paid by the Free State Government in respect of post-truce claims, estimated to amount to over £60,000,000 sterling, with regard to which His Majesty's Government have admitted responsibility for seeing that adequate compensation is paid; and, in the event of a negligible amount only having been paid to date, when it is expected that a settlement of these claims will be arrived at?

As my hon. Friend is aware the important matters raised in his question are engaging the close and earnest attention of His Majesty's Government at the present time, and I am not in a position at the moment to add with advantage anything to the written reply I gave my hon. Friend last Monday.

As many of the claims are now over four years old, does not the hon. Gentleman think it desirable that immediate representations should be made to the Free State asking for a return as to the actual amounts which have been paid?

As I said, we have asked for these returns and they are promised. They are expected to come regularly every fortnight after 1st July.

asked the Under-Secretary of State for the Colonies whether he will lay upon the Table of the House the agreement entered into between the British Government and the Irish Provisional Government which is referred to in paragraphs 2, 3, and 5 of the British Government's letter to the Irish Provisional Government, dated the 26th July, 1922, Command Paper 1736, and is known as the heads of a working agreement for implementing the Treaty so far as the same relates to undertakings given by the Provisional Government for the safeguarding of the lives and property of the loyalists in Southern Ireland, and of their rights in respect of damage for malicious injuries to person or property?

In the time available it has not been possible to complete the necessary consultation with the Government of Irish Free State upon the question of publication of an agreement to which the two Governments were parties. I shall therefore be obliged to my hon. Friend if he will be good enough to repeat his question this day week.

asked the Under-Secretary of State for the Colonies whether, seeing that Clause 1 of the Damage to Property (Compensation) Act, 1923, of the Irish Free State is retrospective in its application to a period prior to the passing of the Irish Free State Act by the Imperial Parliament, in that it rendered void or reviewable decrees and awards made by County Courts in Ireland under the Criminal and Malicious Injuries Acts, and seeing that such retrospective Act is beyond the constitutional rights and powers of the Irish Free State, he will say why such Act was not reserved for consideration and the advice of the Imperial Government before the Governor-General of the Free State assented to the Act on behalf of the Crown?

I am advised that the hon. Member is mistaken in his assumption that Section 1 of the Act to which he refers is beyond the Dominion rights and powers of the Irish Free State; and the question does not therefore arise. I may add that my information is that the decrees and awards referred to are rendered reviewable but not void by the new Act.

Is the hon. Gentleman aware that I and other Members of Parliament drew the attention of the Government to the fact, when this Bill was still before the Free State, that it invalidated certain agreements arrived at in the Treaty itself; and were representations made on behalf of the Government to the Governor-General of Southern Ireland that it was inadvisable to give the Royal Assent to a Measure which invalidated the Treaty?

Is the hon. Gentleman aware that if a case were undefended in the County Court, there was still a right of appeal to the High Court, and are we to understand that, notwithstanding these two opportunities of trial, a decision arrived at by a lower Judge or a higher Judge is still reviewable by the Free State Parliament?

Under the terms of the Act which has recently received the Royal Assent, I understand they have taken power to review these cases. Whether they are going to do so or not, I do not know. My Noble Friend the Secretary of State for the Colonies consulted his competent legal advisers at the time as to whether it was outside constitutional powers; they went into the question very carefully, and their advice was that it was within the power of the Free State Parliament to pass such retrospective legislation.

whose cases were being tried before the Irish Free State Act was passed, and are we to understand that His Majesty's Government is to stand by and do nothing when British subjects, who, since then, may have sacrificed their British citizenship, are to have their claims made null and void?

It is not a question of the claims being made null and void. His Majesty's Government in this, as in many other matters of great complexity arising out of this compensation question, are not inactive; on the contrary, great political questions are involved, which will require and are engaging the attention of the Cabinet.

As this is a matter of great constitutional importance, may I ask whether it was not specially provided in the Act setting up the Free State, that if anything in that Act was contrary to the Treaty, the Treaty was to prevail; and as certain of these Sections are admittedly contrary to the Treaty, should not the Governor-General have disallowed them?

We have searched the Treaty to find if there is anything in it which conflicts in any way with this Act, and there is nothing in the Treaty about it—absolutely nothing. This is one of the difficulties inherent in the case, on the constitutional point, but the legal advice given to His Majesty's Government is that the previous Act, being an Act which applied to Ireland only, under the terms of the Act passed by this Parliament last December, that Act has the quality of a Dominion Act and cannot be amended.

Can the hon. and gallant Gentleman say whether, having regard to the importance of the question, the Law Officers of the Crown have been consulted?

My Noble Friend took the advice of his law advisers—I do not know which Law Officers.

Is it not the fact that it was the law advisers to the hon. Gentleman's own Department who were consulted? Has he consulted the Law Officers of the Crown?

It is not for me personally to consult anybody. I think Sir John Risley and Sir Francis Greer were consulted in the first instance.

Does the hon. and gallant Gentleman know of a single instance in the history of the country where a final British Court has decided a case and it has been made reviewable by another State?

Salary (Mr. Travers Blackley)

asked the Under-Secretary of State for the Colonies whether he is aware that the case of Mr. Travers Blackley does not come within the scope of the Damage to Property Compensation Act; and whether, in view of the exceptional circumstances of this case, His Majesty's Government will take steps to see that compensation from one source or another is paid for the personal losses and damage sustained by Mr. Blackley?

The answer to the first part of the question is in the affirmative. In answer to the latter part of the question, I am informed that the Ministry of Home Affairs, Dublin, on the 8th May last forwarded to the Cavan County Council Mr. Blackley's complaint that the moiety of his salary from county funds for the quarter ended 31st March, 1923, had not been paid, at the same time informing the council that the State had paid its moiety of his salary for this period. The county council, on 11th May, in reply stated that a pay order in favour of Mr. T. R. Blackley for a quarter's salary had been posted to him on that date. If the hon. and gallant Member is in a position to let me have information to the effect that Mr. Blackley has not received this pay order I will make further inquiry.

Is not the hon. Gentleman aware that the payment of salary is only a small thing, and that the substantial matter is the damage in regard to business and property, and will he get into communication with the Free State Government as this is a very exceptional case?

I know that this is a very difficult and exceptional case. I understand that the claim for compensation is going to be heard at an early date.

Passports

asked the Under-Secretary of State for the Colonies whether it is necessary for British visitors to Southern Ireland, either for pleasure or business, to be provided with British passports; and whether such passports require any visa from the representatives of Southern Ireland in this country?

The answer to the first part of the question is in the negative, and the second part does not, therefore, arise.

Gibraltar (Workmen's Compensation)

asked the Under-Secretary of State for the Colonies whether he has considered the Report issued by the Committee which dealt with the advisability or otherwise of the Workmen's Compensation Act being applied to Gibraltar; whether the workers' representatives were afforded an opportunity of sitting upon this committee; and what further steps he proposes to take in the matter?

The Secretary of State has considered the Report. As far as I know no representative of the wage earners was invited to serve on the Committee: but its report which recommended that the Workmen's Compensation Act should not be applied to Gibraltar was unanimously approved by the Executive Council of the Colony, which, I believe, contains such a representative. One of the principal difficulties about applying any Workmen's Compensation Act in Gibraltar is that the bulk of the daily wage earners are Spaniards resident outside the Colony.

Colonial Service (Income Tax)

asked the Under-Secretary of State for the Colonies whether officers serving in the Colonies are assessed for Income Tax in their respective areas of service; and whether, on their leave visits to this country, any salary payments becoming due and payable by the Agents-General for the Colonies are subjected to deductions for British Income Tax?

If the legislation of a Colony provides for the levying of an Income Tax, officers in the service of that Colony would be liable for such payments as may be required by the local legislation. As regards an officer on leave in this country, any liability to British Income Tax, which he may incur in respect of leave pay has, in recent years, been assessed by the various bodies of local commissioners of Income Tax. Provision is, however, made in this year's Finance Bill under which the liability will be dealt with by the Crown Agents, and the appropriate amount of tax collected by deduction.

Tanganyika

Government House

asked the Under-Secretary of State for the Colonies if any inscription has been placed on the Governor's Palace at Dares-Salaam, and the nature of the inscription?

There is no information available on this subject. I have already stated that it is incorrect to describe Government House, at Dares-Salaam, as a palace.

Will the hon. Gentleman obtain the information, and, in the interests of accuracy, may I describe the house as a palace?

If the hon. Gentleman will give me some information which I have been unable to obtain in the Colonial Office I shall be very grateful.

Cotton Imports (Taxation)

asked the Under-Secretary of State for the Colonies if he can now state with regard to cotton goods imported from Great Britain into Tanganyika by a British importer, sold by him to an Indian dealer, retailed by the Indian to an African trader, and sold by him to a native purchaser, the number of duties and taxes payable and of licences necessary before the transaction can be completed?

I have nothing to add to the reply given to the hon. Member on this subject on the 11th June. Any local trader will have obtained, generally at the beginning of the financial year, a trading licence, the fee for which will eventually be repaid to him as a deduction from any Profits Tax payable. The annual payments required for licences and Profits Tax cannot be regarded as part of a transaction in cotton goods.

I am sending my hon. Friend a copy of some papers dealing with this subject. We have now received a despatch, which we are considering, on this particular point.

Passports

asked the Under-Secretary of State for the Colonies whether persons from Great Britain visiting any of the Dominions, either as tourists or settlers, require to be provided with British passports; and whether such passports require any visas from the Dominion authorities in this country?

The Governments of all the Dominions except Canada and Newfoundland require British subjects from this country visit- ing the Dominion concerned, either as tourists or settlers, to be provided with British passports. Such passports do not require endorsement by the Dominion authorities in this country.

Has the suggestion been made to the other Dominions? They might be induced to follow the example of Canada in this matter.

I believe that representation is under the consideration of the Australian Government. In; Australia they do require persons to be in possession of passports, for whatever purpose they come and from whatever country.

Is the question to be raised at the Imperial Economic Conference of having this restriction removed?

Ascension (Turtles)

asked the Under-Secretary of State for the Colonies, now that the naval garrison has been withdrawn from Ascension and the administrative control of the island has been transferred from the Admiralty to the Colonial Office and placed under the Governor of St. Helena, whether the annual tribute of turtles hitherto paid to the Admiralty is now being enjoyed by the Secretary of State and himself, or whether it will continue to be sent to the Admiralty as heretofore?

I have been asked to reply. The facts are that for more than 150 years the green turtle has been known to make a habit of visiting the beaches of Ascension Island, and while the island was treated as a tender to one of His Majesty's ships, and was manned by a naval crew, it was the custom for some of these creatures to be caught and used to supplement the ration of the officers and men serving in the island. Opportunity was occasionally taken to send a few turtle home to the Admiralty, but no expense to public funds was incurred. Now that the naval and marine officers and men have been withdrawn, there is no one in the employment of the Crown available to seize these visitors to the island, and the turtle, I believe, are, in consequence, unmolested; at any rate, neither the Secretary of State nor the Admiralty have any means of securing the continuance of the practice by which some of the turtle found their visit extended from that island to this. With my hon. and gallant Friend's permission I will circulate in the OFFICIAL REPORT the original proposal for the use of these turtle by the Navy put forward by Sir George Young, the great-great-grandfather of the right hon. Member for Norwich (Mr. Hilton Young).

Considering the very able manner in which the island was administered during the whole of the 150 years it was rated as H. M.S. "Ascension," will the hon. and gallant Gentleman make arrangements to allow the tribute of turtles to be continued to the Lords of the Admiralty?

I wish I could. The fact remains that these turtles were gathered by ratings on Ascension Island and were sent home in any ship which happened to be coming home. One turtle was given to the captain of the ship for bringing the turtles home. I may add that, while there was a certain amount of mortality among the turtles, the turtle belonging to the captain of the ship never died.

Will the hon. and gallant Gentleman put one in the tearoom?

Following is a copy of Sir Geo. Young's letter of the 9th December, 1771:

"Weazle" at Portsmouth.

December the 9th, 1771.

Sir,

I beg you will be pleased to represent to My Lords of the Admiralty, that in the late Voyage of His Majesty's Ship "Weazle" under my Command to Guinea; the greatest part of her Company were very much afflicted with the Scurvey—the coast afforded no refreshment but fish and none of that below Sierra Leone, and although the Island St. Thomas abounds in every necessary of life, yet from the wildness of the cattel and the natural indolence of the natives everything is bought extreamley dear, a Purser's Jacket or Shirt, Value six or seven shillings, will purchase no more than a couple of Fowles, or a small cabbereta, and notwithstanding, the seamen sell all their cloaths, it seldom happens they have more than will give them a fresh meal or two, which is their only ressource in the whole Voyage—in the passage to England the ship must necessarily go within 70 leagues of the Island Assension, where the Green Turtle at that time of year is to be procured in great plenty without any other expence than the Mens labor, I should be under no Difficulty with respect to the safety of the King's Sloop, having been at the Island three times, and should Their Lordships think it proper to give leave for the "Weazle" to touch there on her way Home; it would in my humble opinion be a means of greatly refreshing my people, stop the fatal progress of the Scurvey, save many a good man's life and would not prolong the Voyage more than about one week.

I am, Sir,

Your most obedient and very humble servant,

(signed) GEO. YOUNG.

Philip Stephens, Esq.

Minute by the Secretary, 12th December.

To be done. Let him know it.

Palestine

Rutenberg Concessions

asked the Under-Secretary of State for the Colonies if he has received any representations from the Arabs in Palestine protesting against the slow progress being made with the Rutenberg concessions; and, in the event of further prolonged delay, will he consider withdrawing these concessions?

The reply to the first part of the question is in the negative. The second part of the question is hypothetical, and I am therefore unable to reply.

Official Language

asked the Under-Secretary of State for the Colonies if his attention has been drawn to the fact that the Government of Palestine is authorising the change of all the laws and nearly all the names of towns and villages from Arab, Roman, and Greek to Hebrew; and will he make representations to the Palestine authorities that such practices should not be allowed until the same is passed by a duly elected Assembly representative of all the community in Palestine?

No, Sir, I have no reason to believe the facts to be as stated in the first part of the question, and therefore I see no necessity to make representations to the Palestine Government.

Advisory Council

asked the Under-Secretary of State for the Colonies whether he has anything to report with regard to the present position of Sir Herbert Samuel's Advisory Council; whether the Moslem and Christian members are contemplating resignation; and, if so, for what reason?

asked the Under-Secretary of State for the Colonies whether he has any information with regard to the resignation of the Arab members of the Advisory Council of Palestine; and whether the views which have prompted this protest will be taken into consideration in shaping the future policy of the Government in Palestine?

asked the Under-Secretary of State for the Colonies whether he has any information with regard to the reported resignation of the Moslem members of the Common Special Council in Palestine; and whether he can state what steps the Government propose to take to deal with the situation?

The position is that the Arab members of the Advisory Council have written to the High Commissioner stating that they are unable to participate until an assurance has been given that they will not thereby associate themselves with the Constitution as set up by the Order in Council of 1922. Sir Herbert Samuel is proceeding to England on leave very shortly, and until the Secretary of State has had an opportunity of discussing the whole question with him, I should prefer to make no further statement. I will only say that the Amendment Order in Council recently published provides for all contingencies and places the High Commissioner in a position to carry on the administration of the country whether or no a particular community or its representatives abstain from co-operation. The House may rest assured that His Majesty's Government will support him in doing so.

Do not all these incidents happening in Palestine give some reason to doubt the real worth of the Government's policy there?

asked the Under-Secretary of State for Foreign Affairs whether, in view of the repeated failures of the Government to establish a successful representative legislative assembly in Palestine as shown, firstly, by the fact that on the 29th May the Palestine administration declared the elections to be null and void, secondly, the failure of the Government to form a legislative council, and, thirdly, the refusal of the Arab population to vote for the candidates to act on the proposed advisory council, His Majesty's Government will reconsider their whole policy in relation to Palestine and grant a national Government elected by a majority of the inhabitants of that country, Moslem, Christian, and Jew, with powers of control over their own internal affairs?

The hon. Member does not appear to be accurately informed as to the facts. There was never any question of the Arab population being invited to vote for candidates for the proposed advisory council. With regard to the intentions of His Majesty's Government, I have nothing to add to what I have already stated in reply to the hon. Member for Acton.

Election (Returns)

asked the Under-Secretary of State for Foreign Affairs whether he can now furnish the complete returns for the recent Palestine elections?

A return on the subject has recently been presented to the House as Command Paper No. 1889.

Fiji (Constitution)

asked the Under-Secretary of State for the Colonies what is the present Constitution of Fiji and how many electors are enrolled as voters; whether he is aware that important sections of the community are either not represented at all or are inadequately represented; whether the Governor has urged that the question of Constitutial Reform in Fiji be taken up; and what is the policy of His Majesty's Government in this matter?

The Constitution of Fiji provides for an Executive Council and a Legislative Council. The Executive Council consists of the Governor, the Colonial Secretary, the Attorney-General, and two unofficial members nominated by the Governor. The Legislative Council consists of the Governor, 12 nominated members (including one Indian member), seven members elected by persons of European descent, and two native members. The number of registered electors at the time of the last election was 1,133. The number on the present voters' roll is, I understand, 930. The total European male population, over the age of 20, at the Census of 1921 was 1,688. The question of representation on the Legislative Council is under discussion with the Governor.

In view of the wish of the overwhelming majority of the electors that such a course should be pursued, will the hon. Gentleman's Department consider giving the unofficial members equality of representation with the nominated members, leaving the Government the casting vote?

That can be taken into consideration, in connection with the question of Constitutional Reform now under discussion.

Russia

Mrs. Stan Harding

asked the Under-Secretary of State for Foreign Affairs whether, in view of the re-statement by the Russian Government of charges of espionage against Mrs. Harding, the British journalist, for which the Foreign Secretary has declared there is no foundation, and in view of the worldwide publicity which is once again being given to this unfounded accusation, the British Government, in the reply which they are now preparing to the Russian Note, will insist, in addition to the pecuniary compensation they are obtaining for her imprisonment, upon an unqualified withdrawal of the allegations complained of?

His Majesty's Government have several times stated emphatically that the charges made against Mrs. Stan Harding by the Soviet Government were entirely without foundation, and in their Memorandum of 29th May they have again reiterated this declaration. It is impossible to prevent the Soviet Government repeating their false accusation if they choose to do so, but their compliance with the demand of His Majesty's Government for substantial compensation to be paid to Mrs. Harding is an acknowledgment of the justice of her claim, which rests upon her innocence of the charges preferred against her, and in these circumstances nothing would be gained by pursuing the matter further.

In view of the fact that the publicity given to this libel in America has caused Mrs. Harding great distress, will my hon. Friend consider the desirability of making some similar statement for publication to American correspondents?

I do not think I can take any steps which will give it greater publicity than an answer to a question in this House.

Outstanding Questions

asked the Under-Secretary of State for Foreign Affairs what is the next step to be taken by His Majesty's Government in the negotiations with the Russian Government for the settlement of the questions still outstanding between the two countries?

As the hon. and gallant Member is aware, agreement has just been reached with the Soviet Government upon certain specific issues. It would be premature to break fresh ground until His Majesty's Government have been able to observe the manner in which such agreement is carried into effect.

Does the hon. Gentleman not see that the present state of affairs is not satisfactory on either side—the question of claims of British subjects, for example, is still outstanding—and is it not desirable that we accept the proposition to hold a conference on all outstanding questions?

I quite agree that the position is not satisfactory, but my answer stands with regard to the opportunity.

asked the Prime Minister whether, now that the recent dispute with the Russian Government has been satisfactorily ended, His Majesty's Government will invite the Russian Government to a conference at which private claims on both sides may be produced and examined in a reciprocal spirit of good will, and at which such public issues as may still divide the two Governments may be approached in the same spirit, with a view to the settlement of all outstanding differences and to the resumption of normal diplomatic relations between the two countries?

His Majesty's Government do not consider that a conference with representatives of the Soviet Government could at present usefully be convoked.

If His Majesty's Government received a proposal from the Soviet Government for a conference, would they refuse it?

Foreign Office (Passport Department)

asked the Under-Secretary of State for Foreign Affairs the number of persons now employed in the Passport Department of the Foreign Office; and whether he can assure the House that the number of persons now employed at the Foreign Office, more than four times the number employed in 1914, will be substantially reduced in the near future?

The number of persons now employed in the Passport Department of the Foreign Office is 266, of whom 8 are permanent and 258 temporary. I referred the hon. Member on 11th June to the reply to a previous question, in which the reasons for the inevitable increase in the staff of the Foreign Office were fully stated. I do not anticipate that any substantial reduction will be possible in the near future.

Do the conditions which prevailed at the time of the answer to which the hon. Member has referred prevail at the present time?

Is it not a fact that, if this system—to which many of us object—is to go on, there is no country in the world where it is carried on more efficaciously and cheaply and with less red tape than it is here?

asked the Under-Secretary of State for Foreign Affairs what European countries admit British passports without any visas; if the Government have made any representations to other countries to withdraw their conditions of visas; and can he make any statement as to whether the Government favour the withdrawal of visas on all British passports?

Agreements for the mutual abolition of visas have been concluded with France, Italy, Spain, Switzerland, the Netherlands, Belgium and Luxemburg. It is hoped shortly to conclude a similar agreement with Sweden. Portugal have declined to conclude an agreement. A pronouncement to the effect that His Majesty's Government would favour the withdrawal of visas on all British passports could not be made without giving rise to demands for reciprocal treatment; and the time has not come, in the opinion of His Majesty's Government for the complete abolition of visas for aliens seeking admission to the United Kingdom.

asked the Under-Secretary of State for Foreign Affairs whether, as it is deemed desirable to continue the use of passports, he will put forward the suggestion that the life of a British passport be increased from two years, as at present, to a period of five years or more?

The possibility of extending the period of validity of British passports is under consideration by the various authorities concerned. There are a number of questions involved in any such extension, but it is hoped to arrive at a conclusion at an early date.

League of Nations

Saar Valley

asked the Under-Secretary of State for Foreign Affairs whether he will inquire into the case of Hermann Roechling, member of the Landesrat, in the Saar Valley, who has recently been prohibited by the Inter-Allied Rhineland Commission from entering or passing through occupied territory, despite the fact that free intercourse between the Reich and the Saar has been promised to the Saar population; and whether he will make representations with a view to permission being granted to M. Roechling to visit his iron and steel works in the Ruhr and his banking business in Frankfurt-on-Main and Berlin?

asked the Under-Secretary of State for Foreign Affairs the terms of the resolutions which have been placed on the agenda of the next League of Nations meeting in reference to the Saar Valley administration?

asked the Prime Minister what precise proposal is to be made by the British representative at the forthcoming meeting of the League of Nations Council in reference to the administration of the Saar territory?

The Secretary-General of the League of Nations has been asked to put the following item on the agenda for the next meeting of the Council:

" Saar Valley —1. To draw attention to the Decrees of 7th March (maintenance of order) and 2nd May (picketing).

2. To propose an inquiry as to whether the administration of the Saar Basin by the Governing Commission has been in accordance with the spirit and terms of the Treaty of Versailles."

Council and Assembly (British Representatives)

asked the Prime Minister the names of the British representatives at the next meetings of the Council and Assembly of the League of Nations?

As I have already announced, the Lord Privy Seal will represent His Majesty's Government on the Council of the League. As regards representation at the meeting of the Assembly, I am not yet in a position to make an announcement.

Is it not essential that these persons should be chosen as soon as possible, so that they may study the problems that will come up?

I think that anyone who is chosen will be fairly familiar with the problems, but the Assembly does not meet until September. They will be chosen before long.

Has the right hon. Gentleman yet decided whether the other parties in the House should be represented on the Delegation? A question was put the other day on that point.

Slavery (International Bureau)

62 and 63.

asked the Under-Secretary of State for Foreign Affairs (1) whether the Council of the League of Nations has had under consideration the question of re-organising the international bureau upon slavery; whether this bureau, although now under the League of Nations is established at Brussels; whether the re-organisation has been carried out in such a manner as to render the bureau competent to assist the Powers in fulfilling the obligations of the Powers signatory to the anti-slavery convention of 1919;

(2) whether it is proposed to retain indefinitely at Brussels a separate bureau for dealing with slavery; whether, although this bureau is situated at Brussels, only those Powers who are signatory to the Convention of 1919 will be called upon to contribute to its cost; and whether he will consider if it is desirable to continue the practice of limiting financial obligations for a League of Nations bureau to the Powers who may adhere to particular Conventions?

I would refer the Noble Lord to the reply which I gave to the hon. Member for Bedford (Mr. S. R. Wells) on the 4th instant. The remainder of Question 62 and Question No. 63 do not, in the circumstances, arise.

Tangier

asked the Under-Secretary of State for Foreign Affairs whether he can give any information as to the scope of the proposed conference on Tangier; when it is going to meet; and who will be the British representatives upon it?

The hon. and gallant Member is under a misapprehension in referring to a conference. It is only proposed that informal conversations should take place between British, French, and Spanish experts with the strictly limited object of endeavouring to find a common basis of agreement which would render it possible to hold a conference. It is hoped that these conversations will begin during the present week. His Majesty's Government will be represented by Mr. Robertson, His Majesty's Agent and Consul-General at Tangier, who is now in London.

Silk Trade (Inquiry)

asked the Prime Minister whether, in view of the similar conditions existing, he will extend the scope of the inquiry into the lace trade to include an inquiry also into the silk trade?

Protection of Animals (Amendment) Bill

asked the Prime Minister, in view of the fact that the First Reading of the Protection of Animals (Amendment) Bill, 1923, was passed by a majority of 82 and the Second Reading being also passed by the House without dissent, and having due regard to the fact that 50 Members of this House, representative of all parties, petitioned the late Prime Minister to give further facilities for the passage of this Measure, whether he will favourably consider their request?

I regret that, in view of the state of public business, I can hold out no hope of facilities being given for this Bill.

Supply (India Office Vote)

asked the Prime Minister whether, in view of the unfortunate impression likely to be made on opinion in India by the curtailment of the Debate on Thursday last, he will secure for this House a further opportunity for discussing Indian affairs at an early date?

No, Sir, in the present state of business it is not possible to grant special facilities for the continuation of this discussion. There are, however, the usual opportunities on Supply.

As it was not the fault of the Opposition that the Debate was postponed, are they to be deprived of their limited privileges in order that the Government should secure the proper discussion of Indian affairs? Is it not the duty of the Government to provide an opportunity?

It is nobody's fault, and it is not the duty of the Government to perform impossibilities. There certainly could be an occasion for further discussion on Supply if either of the parties in the House which have the power of choosing the subjects in Supply chose to exercise that privilege in that way.

Will the right hon. Gentleman see his way to give us an extra day on Supply?

I would with pleasure if there were one, but there is no extra day.

Prohibition Laws (United States)

asked the Prime Minister whether His Majesty's Government admit the claim of the United States Government to exercise jurisdiction over matters of internal economy and administration of British shipping in American territorial waters; and whether the Government can make any further statement with reference to the enforcement of the Volstead Act in respect of British shipping?

I must refer my noble and gallant Friend to the reply which I gave to him on the 7th June. I cannot make any further statement on the subject at present, although it is one which is receiving the most earnest and continuous attention.

Is the right hon. Gentleman aware that on 5th June I put this same question to him, and Mr. Speaker directed it to be put on the Paper? I have not yet had an answer.

asked the Under-Secretary of State for Foreign Affairs whether he can make any statement as to the existence of a proposal by the United States to restore the right of foreign vessels to possess sealed supplies of liquor within American territorial waters in exchange for an agreement extending the right of search to 12 miles from the coast?

The United States Government have proposed the conclusion of a treaty by which, for the purpose of enforcing prohibition on the import of liquor into the United States, United States officers should be allowed to search British vessels within 12 miles from the coast. In return the United States Government would be prepared to allow the transport of liquor in British vessels if placed in bond in the above-mentioned area. The matter is under consideration.

Is it not the fact that any alteration in the extent of the territorial waters should be the subject of international agreement, and entirely separate from the question as to whether or not liquor is to be admitted?

Yes, Sir, certainly. There is no question here of altering the international law as to territorial waters; the only question that arises at all is as to an agreement as to special treatment within the territorial waters of each country of the nationals of two nations.

Will not this matter also raise the question of the fishing rights?

There is no question of interfering, as I have stated, with international law as to territorial waters.

British East and West Africa (Railways)

asked the Undersecretary of State for the Colonies if, in view of the decision of the Colonial Office to build all future railways in British East and West Africa departmentally instead of by private enterprise, he will give the reasons why this policy is being followed; whether private enterprise has answered efficiently in the past; and whether the change is made because the State can build more cheaply than private enterprise?

No such decision as is suggested in the first part of the question has been taken. Except in Nyasaland, where the railways are owned and run by private companies, all railways in British West and East Africa, with the possible exception of the branch line to the Soda Lake at Magadi in Kenya, are Government railways. Some have been constructed departmentally and some by contract, and future railways will be constructed either departmentally or by contract, as would appear to be the most economical or satisfactory course in any particular case. My Noble Friend will welcome any suggestions for supplementing the transport facilities provided by the Colonial Governments by private enterprise where such should appear practicable.

Ellis Island (British Subjects, Detention)

asked the Under-Secretary of State for Foreign Affairs what assistance is given in New York by the British authorities to British emigrants and visitors who on arrival are sent to Ellis Island on the ground that the British quota of emigrants for the year has been exceeded; and what steps are taken to bring to the notice of these emigrants the fact that such assistance is available?

His Majesty's Consulate-General at New York is in constant touch with the United States immigration authorities on cases of this kind, which are taken up, when necessary, with the United States Government through His Majesty's Embassy. I do not think that a British subject could, under existing arrangements, even if himself unaware of the presence of British Consular officials in New York, be detained at Ellis Island without the fact coming to the knowledge of His Majesty's Consulate-General.

Are facilities given by the authorities for communication between Ellis Island and the Continent?

asked the Under-Secretary of State for Foreign Affairs whether he will suggest to the British authorities in the United States of America the desirability of evolving some better system of information which could be conveyed to the shipping companies to avoid the extreme inconvenience caused by British emigrants reaching America only to be detained at Ellis Island because the British quota of emigrants for the year has been exceeded?

The shipping companies receive this information directly from the United States authorities, and I am not in a position to suggest possible improvements in the system, so long as the system itself is maintained by the United States. When it is remembered that British immigrants reach the United States from all parts of the world, and that the quota itself is based on the country of birth, the difficulties with which the shipping companies have to contend in allotting passages may be readily realised. I am afraid the only real remedy is for British immigrants to abstain from proceeding to the United States.

asked the Under-Secretary of State for Foreign Affairs whether his attention has been drawn to the detention of Mrs. Lucy Beddoe and Mrs. Emily Ramsden at Ellis Island; whether he is aware that both ladies were to visit relatives in the United States of America; that grave complaints are made by those Englishwomen of their treatment; that all nationalities are massed together with no privacy at all; and what steps the Government are taking in the matter?

No official report of the detention of these ladies has, so far, reached the Secretary of State, and I am not aware of the exact circumstances in which they may have been detained. Any complaints which may be brought to the notice of His Majesty's Government will be most carefully considered. As I stated in my reply to the hon. Member for Richmond on the 31st May, His Majesty's Ambassador and Consular officers in the United States may be relied upon to do everything possible in the interests of detained British subjects.

Will the hon. Gentleman make special inquiries as to these complaints: is he aware that these ladies complain that they were given only bread and water and that they were treated worse than dogs, and should British citizens be so treated?

Is the hon. Gentleman satisfied with the report of the Ambassador, who went over to Ellis Island some months ago?

I am afraid that I do not quite know what the hon. Gentleman means by being "satisfied."

Bulgaria

asked the Under-Secretary of State for Foreign Affairs whether he is able to give the House the latest information with regard to events in Bulgaria; whether there has been any intervention on the part of Jugo-Slavia; and, if so, to what extent?

The situation is still not clear enough for any more definite information to be given than has appeared in the Press. In regard to the second and third parts of this question, the intervention of the Serb-Croat-Slovene Government has been limited, so far as I am aware, to drawing the attention of the Great Powers to the alleged mobilisation of the Bulgarian army.

Economic Co-Operative Society, Constantinople

asked the Parliamentary Secretary to the Overseas Trade Department whether he is aware that at an extraordinary general meeting of the Economic Co-operative Society, Constantinople, held on 7th June, a resolution was passed winding up the company; whether he is aware that this society, which was founded in 1883, has a claim against the Turkish Government for £28,000; and whether he has taken, or intends to take, any action in this and similar claims, with a view of affording immediate financial assistance by making an advance upon recognised and duly assessed claims?

I have no information as to the first part of the question. The answer to the second part is in the affirmative. The company's claim has been investigated and provisionally assessed at Constantinople by a Special Commissioner, and will be submitted to the Royal Commission on Compensation for Suffering and Damage by Enemy Action for participation in the £5,000,000 Compensation Fund, but no payment out of that fund can be made to the company until the Commission have presented their Report upon the claims in respect of damage to property.

Agriculture

Farming (Limited Companies)

asked the Minister of Agriculture whether he will give approximate figures showing the total area over which farming is now carried on in England by limited companies holding an aggregation of farms not limited to a single estate, the number of such companies, and the total face value of their capital?

I regret that I am unable to supply the information desired by the hon. Member.

Will the right hon. Gentleman have details collected, in view of the great interest in this movement?

Valuations

asked the Minister of Agriculture if he is aware of the general discontent among agriculturists due to the refusal of valuers to have valuations registered when a change of tenant takes place; and will he consider the advisability of introducing legislation to make these registrations compulsory in future?

I do not understand what the hon. Member refers to as the refusal of valuers to have valuations registered, but, in any case, I have no evidence of any such discontent as the hon. Member suggests. If, however, he will give me further information on the subject, I shall be glad to look into it.

Is not the right hon. Gentleman aware that when a valuation is made the new tenant is given no indication of what is actually paid for, and that some farmers complain that they are being overcharged to the extent of hundreds of thousands of pounds? Does the right hon. Gentleman not think that when these valuations are made that the valuers should be compelled to complete their task and have the valuation registered?

If the hon. Gentleman will give me definite cases, I will have them looked into, but I have not received any complaints.

Conciliation Agreements

asked the Minister of Agriculture the number of agricultural workers employed in areas in which agreements arrived at by conciliation committees are current, and the number employed in areas in which no agreement is in operation?

The most recent particulars with regard to the numbers of agricultural workers in England and Wales relate to June, 1921. According to the returns then collected, the number of workers employed on holdings above one acre in extent in the areas in which agreements by conciliation committees are now current was about 226,600. This number includes boys and female workers for whom wage rates are not specified in some of the agreements. In the areas without agreements, the number of workers was about 642,000. This figure includes, however, 55,600 workers in Derby and Norfolk, in which areas separate settlements as to wages have been reached.

In view of the fact that apparently only a quarter of the agricultural workers of the country are under these arbitration awards, will the right hon. Gentleman consider the possibility of bringing in a Bill which will make these awards registrable; will he also take steps to re-establish the Agricultural Wages Board?

In regard to the first part of the question, I have a Bill in draft to make the agreements registrable; as to the second part, as I have already stated, it is not part of the policy of His Majesty's Government to introduce such a Measure.

Cattle (Tuberculosis)

asked the Minister of Agriculture whether he will reintroduce the Tuberculosis Order of 1914, or one having similar effect, in which tuberculosis in cattle was made a notifiable disease, and whether he will promote a Measure to compel all county authorities and the larger cities or combinations of smaller authorities to appoint whole-time veterinary officers, and to compel the application of regular veterinary inspection of cattle, particularly dairy herds, throughout the country, such officers to be also responsible for the inspection of meat in the districts concerned, and if need be to set up veterinary departments for this purpose, as in certain of the larger local authorities of the kingdom?

Unless and until I am assured that a majority of local authorities, including counties and cities, are in favour of the reintroduction of the Tuberculosis Order of 1914, I do not see my way to reissue this Order in view of the very considerable expenditure involved, not only to my Department, but also from local funds. With regard to the second part of the question, I would remind the hon. Member that Section 1 of the Milk and Dairies (Amendment) Act, 1922, deferred until 1st September, 1925, the operation of Section 10 of the Milk and Dairies (Consolidation) Act, 1915, which contemplated the appointment of veterinary inspectors by local authorities for purposes similar to those suggested in the question.

Is the right hon. Gentleman aware that last year over 7,000 children died from tuberculosis whilst a very large number were permanently injured from the same cause? I want to know will these considerations be allowed to weigh against any commercial considerations involved?

Those considerations weigh very strongly indeed. The matter is under the consideration of the various local authorities in the country towns, and if those authorities agree that they would like a similar Order to this put in force again it will receive the most careful consideration of the Government.

Will the right hon. Gentleman circularise the local authorities on this matter to find out exactly what their views are on this matter?

I think that is a matter upon which the local authorities ought to be the prime movers, and I know that one prominent local authority has already put the matter forward.

Freshwater Fisheries (Angling Licences)

asked the Minister of Agriculture if he will give the number of freshwater fishery boards in England and Wales which have established a system of licences for angling?

Forty-seven boards of conservators issue angling licences. All of them issue licences for trout angling and 45 issue licences for salmon angling. Five issue licences for fishing for what are known as coarse fish, either separately or in conjunction with trout.

Agriculture and Fisheries (Development Fund Grants)

asked the Minister of Agriculture if he will state the total sum advanced at the instance of the Board of Agriculture and Fisheries by the Development Fund, for purposes connected respectively with agriculture and fisheries, up to the end of the year 1922?

The total sums advanced from the Development Fund at the instance of my Department from 1909 to 1922 were £1,250,876 for agriculture and £199,623 for fisheries.

Millom Housing Scheme

asked the Minister of Health if he is aware that the Millom Urban District Council was induced by his Department last year to undertake a housing scheme; that the council spent a sum exceeding a penny rate by £190 in the preparation of plans and prospecting, and that when it was subsequently decided by the Department not to proceed with the scheme an application was made for repayment of the amount spent by the council at the instance of the Ministry; that this account has not yet been repaid; and, having regard to the financial difficulties of the council, will he order repayment of the amount named at an early date?

My right hon. Friend is aware that the Millom Urban District Council incurred expenditure upon a housing scheme which was not proceeded with, but he is not aware of the extent to which that expenditure exceeded the produce of the penny rate to be borne by the local authority. The council has already been promised an advance on account of any Exchequer subsidy which may be due on receipt of information as to the amount of a penny rate for the year concerned. This information has not yet been received.

Health Insurance Benefits (P. Adams, Glynneath)

asked the Minister of Health whether he is aware that Mr. Percy Williams, 37, Avon Street, Glynneath, Glamorganshire, has been refused seven weeks' payment whilst ill, and also a maternity benefit, by the Welsh Commissioners, Board of Health, Cardiff, on the grounds that his cards were not received in time, and that the record and insurance card was sent at the right time to the superintendent of the Pearl Assurance Company, at Quaker's Yard, where he had previously lived, and that six months later when the claim for benefit was made they denied receiving the same, although they afterwards sent the cards to the Commissioners, who decided that he was not entitled to benefit because the cards were not received in time; and will he inquire into this case and take steps to have the matter put right?

The case to which the hon. Member refers does not appear to have been brought to the notice of the Welsh Board of Health, but the Minister is arranging for an Inspector of the Board to visit Mr. Williams, and as soon as his report on the case is received he will communicate with the hon. Member.

Is the Noble Lord aware that the Commissioners themselves sent this man a letter telling him that he was not entitled to this benefit?

I can only repeat that it was not brought to the attention of the Welsh Board of Health.

Nurses Registration

asked the Minister of Health what steps an existing nurse must take in order to secure the opportunity of having her name placed upon the State register of nurses; what is the limit of time; and what must be the nature and terms of their application?

Nurses desirous of being placed on the register should write to the office of the General Nursing Council for a form of application. This should be filled so far as it is applicable, and returned to the Council not later than the 14th July. Provided a formal application is lodged by this date, any necessary certificates can be furnished subsequently.

Is the Noble Lord not aware that the existing nurses are anxious to know because they have only been given until the 14th of July to register?

Penny Postage

asked the Postmaster-General whether the increased earnings of the Post Office will permit of the reintroduction of the penny postage at an early date?

My right hon. Friend regrets that he can add nothing to the information contained in his reply to a similar question put by the hon. Member for Acton on the 12th instant.

Copyright (Musical Works) Bill,

"to amend the Copyright Act, 1911," presented by Mr. FRANK GRAY; supported by Sir Walter de Frece, Mr. Becker, Mr. Collins, Mr. Tillett, Colonel Sir Arthur Holbrook, and Sir Robert Hamilton; to be read a Second time upon Monday next, and to be printed. [Bill 166.]

Agricultural Credits Bill

Reported, with Amendments, from Standing Committee B.

Report to lie upon the Table, and to be printed. [No. 90.]

Minutes of the Proceedings of the Standing Committee to be printed. [No. 90.]

Bill, as amended ( in the Standing Committee ), to be taken into consideration upon Thursday, and to be printed. [Bill 167.]

Orders of the Day

Finance Bill

Further considered in Committee [ Progress, 13th June ].

[Mr. JAMES HOPE in the Chair.]

With regard to the new Clause relating to the Inhabited House Duty and reassessments, a general discussion will have to take place on the first new Clause. If this Clause be carried, of course, it will involve a continuance of the Inhabited House Duty, and the further new Clause for repeal on that subject on the Paper would not be in order. We shall first have a general discussion on the assessments under Schedule A.

I take it that you, Mr. Chairman, suggest that a general Debate shall take place on the Chancellor of the Exchequer's first proposal. I would like to point out that there is no intention of moving the Amendment on the Paper dealing with the Inhabited House Duty, and hon. Members interested are quite willing to take the Amendments standing in my own name and the names of other hon. Members. Therefore, in these circumstances, is it the intention to have a general Debate on the Chancellor's new Clause?

Might I suggest that the Inhabited House Duty is so intermixed with the reassessment question, and so interwoven with the statement which I shall have to make on reassessments that, however much it might be desirable to take a Division on the Amendment of the hon. Member for Colne Valley (Mr. Snowden) and the following Amendments, it would be still more essential to get the whole of the facts placed before the Committee in order that hon. Members should be allowed to mention and, to some extent, discuss the question of the Inhabited House Duty?

With regard to the question as to whether it would be advisable to allow a Division on later Amendments, I will keep an open mind, but it will be practically impossible to confine the discussion to a limited sphere on the Chancellor's new Clause. What I wish to point out is that we cannot have the same discussion twice over.

The later Amendments deal, not with the assessments, but with the rate of the assessment, and that question does not arise on the Chancellor's new Clause. Even if questions dealing with the assessments are discussed on the Chancellor's new Clause, ought not the point as to the rate at which the Inhabited House Duty can be charged be left open for discussion?

All I say now is there can be a general discussion on the first New Clause, and that the same discussion cannot be repeated on subsequent Amendments.

I take it that my Amendment cannot be brought into the general discussion on the Chancellor of the Exchequer's new Clause.

Certainly; the putting of the Amendment will not be prejudiced on that account.

NEW CLAUSE.—(Provisions as to appeals against Schedule A, Schedule B, and Inhabited House Duty assessments.)

(1) Where by virtue of any enactment the annual value of any property which has been adopted for the purpose either of Income Tax under Schedule A, or of Income Tax under Schedule B, or of Inhabited House Duty for any year is to be taken as the annual value of that property for the same purpose for any subsequent year, any occupier of any property, or any owner or other person in receipt of the rent of any property, who is aggrieved by the amount so to be taken as the annual value of the property shall be entitled to appeal to the General Com missioners against an assessment to Income Tax under Schedule A or under Schedule B, or to Inhabited House Duty in respect of that property for that subsequent year, and the General Commissioners shall hear and determine the appeal and confirm or amend the assessment, as the case may require, in the same manner as if the annual value of the property so to betaken were the annual value determined for that subsequent year, in accordance with the provisions of the Income Tax Acts or of the Acts relating to Inhabited House Duty, as the case may be.

(2) On any appeal against an assessment of annual value for the purposes of Income Tax under Schedule A or of Inhabited House Duty, or against an assessment to Income Tax under Schedule A, or under Schedule B, or to Inhabited House Duty, the General Commissioners shall permit any agent appointed by the appellant to plead before them on his behalf.—[ Sir W. Joynson-hicks.' ]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time." I am glad to have an opportunity of making a statement on the reassessment of house property which has caused so much interest and excitement throughout the country during the last few weeks. I should like to point out how it comes about that there is a necessity for this at the present time. The old law was that there should be a reassessment of ordinary houses every five years for one purpose only, in order to see that the owners of house property paid the same rate of tax as the owner of Consols or securities in any company or in any business. It would be obviously unfair to single out for leniency any particular form of property, such as house property, as against Consols, War Loan, or other property of that kind. Therefore, this House decided that every five years there should be a reassessment of the houses of the country in order to ensure that the owners of such property were paying upon the value that they actually received, or which it was suggested they should receive. There was a valuation in 1898, another in 1903, and another in 1910. The next valuation was due in 1915, but during the War it was considered quite impossible to go to the trouble and expense and to incur the difficulties almost certain to arise in attempting to carry out the revaluation while we were engaged in the great struggle with Germany. It was consequently put off from time to time until last year the Government, by an Act of Parliament, decided that the revaluation should take place this year. That is the revaluation which is taking place now in pursuance of an Act of Parliament passed by this House last year, in order to get the correct value of every house throughout the country, and to see when that correct value has been ascertained that the owner of the property—and this is an owner's tax and not a tenant's tax—pays the right taxation on the value thus ascertained.

I want to make it quite clear that the first thing we have to find out in regard to this operation is the value of the house in question. There are two classes of case; there is the case of the house which is let to a tenant, and there is the case of the house which is owned by the occupier himself. The latter gives rise to a more difficult question than the former. The former is the simplest question in the world. You have to find out the exact rack rent the tenant pays, and this rack rent constitutes the assessment, subject to a proper allowance to the landlord for the cost of repairing the property. The law is quite clear. Where a house has been let at a rack rental within seven years of the date of the assessment, that rental fixes the amount of the assessment. The actual rent is the figure, and neither the Commissioners nor the inspectors of taxes, nor assessors nor owners have the slightest right to alter it. Where the rent has been fixed within seven years of the assessment, that is perfectly clearly the amount of the assessment upon which taxation will be paid. Of course, in most cases the tenant—

I am trying to make my case perfectly clear. The hon. Member will have an opportunity of asking questions, or making a speech in opposition to what I am saying. The tenant gets notice of the assessment. If the assessment is upon the rent that he pays, the tenant pays the tax upon that rent, that is, upon that assessment, and he deducts the amount so paid from the rent he pays to the landlord. I notice that an hon. Member who knows a great deal about this question (Sir C. Warner) shakes his head. May I add, if the assessment is different from the rent, if for instance, the house was let on a lease more than seven years ago and the assessment is different, then, of course, the hon. Member is quite right in shaking his head. But if the rent is the rent fixed within seven years, the law is perfectly clear. That is the amount of the assessment, and the tenant is entitled to deduct the tax from the landlord when he is paying his rent. I want to make tins clear. If the landlord spends on an average of five years more money on repairs than the amount allocated for repairs, he can then go to the Commissioners and produce his accounts and prove that he has spent more than the amount allocated for repairs, and then he gets back tax on the surplus he has so spent on repairs.

The case in regard to the owner occupier is somewhat different. There is no rack rent. There is not that easy means of arriving at the assessment. The Act of Parliament requires quite rightly that the owner of a house should be in no better position than the owner of Consols or any other property. If another person has invested £2,000 in the purchase of London and North Western Railway stock, if that stock goes up in value, if higher dividends are paid upon it, then the man who has invested that money will of course pay Income Tax on the higher dividends. Equally so in the case of the man who has invested £2,000 in the purchase of a house; if the house has gone up in value it is quite right that the owner should pay Income Tax on that higher value, whatever it may be. The only difficulty is how to arrive at that higher value. He must pay on the actual value. I cannot conceive that there is any man in this House who would suggest that the owner of property should pay on other than the actual annual value of it. How then are we to arrive at the annual value of the property where the owner bought it and lives in it himself? Suggestions have been made that the owners who bought property at high figures during and since the War are being assessed today on the annual value of that high figure of purchase. It is nothing of the kind. We have given quite definite instructions—the Inland Revenue authorities have and I have too—to inspectors of taxes that the high values which men gave when purchasing houses during and since the War are not to be the criterion which is to govern the annual value of the house.

They were given certainly months ago. How then is the inspector or the assessor or the Commissioner to find out the value of these houses?

An hon. Member opposite has answered the question in one sentence. They must take the rack rents of the nearest houses that they can find m the neighbourhood which are similar to the one of the assessment of which they are considering. Those instructions have been quite definitely given, and, if there be anybody here or outside this House who can give me any information that owner-occupiers are being taxed on the value which they paid for the house during the War and not by reference to the nearest approximate value that they can get by taking the rack rent of adjoining houses, then, I say at once, that assessment is wrong, and it will be put right at the earliest possible moment. There is another suggestion made, that the assessors or inspectors have gone on a wholesale rule of thumb method and have added a merely arbitrary percentage, say 20, 30 or 40 per cent. on to the last assessment, and have said that is the new assessment. I have also given direct instructions that that is not the way in which this valuation should be done, and, if anybody can give me instances where it has been done, I have the authority of the Chancellor of the Exchequer himself—and I should like to say that what I am saying has the entire concurrence of my right hon. Friend—to say that in that case the assessment will be at once remedied.

May I at this stage point out, because I think there has been a good deal of misconception with regard to the matter, how these assessments are made In the first place, it falls upon the local Income Tax commissioners, who are a perfectly independent body of men not in any way connected with Somerset House, in every district—and there are some 600 or 700 districts—to appoint their assessors. They prepare a list of all the houses in their district, obtain returns, enter the actual rents at which those houses are let where they know them, and insert an estimate of the annual value where they cannot know the actual rents. Then, and I think rightly, the law imposes upon the assessor for the protection of the Crown the duty of giving to the inspector of taxes, who is the servant of the Crown or, may I say, my servant or the servant of the Inland Revenue, the assessment of the values which are placed on every house in the district by him. When he has done that, it is the duty of the inspector, as the servant of the Inland Revenue, to arrive at his own conclusions, as well as he may, as to the values that he thinks should be put upon those houses. He can insert that figure in another column, but the final decision—and I want the Committee to realise this—rests with these independent commissioners, who then and there sign the lists. The assessment notices are then issued.

If a taxpayer be dissatisfied with the assessment, in the first instance he gives notice to the inspector of taxes, because he is in some way the other party to the dispute. I daresay many hon. Members have seen these notices. I have a good many here. Then what happens? There may be, as there are, some hundreds of thousands of notices of appeal. All those do not go to the commissioners of taxes. They would be flooded out with appeals. You do not want lawyers and agents and surveyors if it be a mere question which can be settled by producing your rental agreement. You take it to the inspector of taxes. The inspector of taxes remedies the bulk of the appeals without difficulty. The man goes away satisfied that he has got the right figure, the figure of the rent that he pays, put into the assessment. I want the Committee also to realise that that does not in any way prevent an appeal. It is* a method of preventing law suits. If that method be not satisfactory to the taxpayer, and he cannot get the inspector to take his view of the value of the property, he has an absolute and indefeasible right to appeal to the commissioners of taxes, and those commissioners, who are a perfectly independent body, will take such evidence as they see fit. I cannot control them. There are several of them in this House, and, if I attempted to control them, I should be up against a very strong and independent body of men. Nor would it be right for me to attempt to control them. They stand between the Crown and the subject. Of course, notice is given to the particular taxpayer who has to appeal when they will sit, and he can go there and the inspector can go there with their evidence, their surveyors, their rent agreements, and any evidence that either partly likes to give, and the Commissioners then decide. It was suggested to me some little time ago by some of my hon. Friends that I should make a declaration that the onus of proof should be on one side and not on the other. I think the fairest thing is that both sides should give whatever evidence they have in their power, and that the commissioners should then decide on which side the right lies. The commissioners, of course, throughout have the right to decide.

The Government, as the Committee knows, have promised certain Amendments. My right hon. Friend the Chancellor of the Exchequer, in the speech that he made on the Second Reading of the Bill or on the Report stage of the Budget Resolutions, promised certain Amendments, and those Amendments are contained in the new Clauses, the first of which I am now moving. In the first place, we propose to extend the time in which appeal may be lodged against all new assessments until 31et August this year, and to grant to the owner who has not received notice of assessment a right to claim adjustment at any time up to the 5th April, 1925. I think that gives an owner who has not received his notice of assessment a good long run—18 months from to-day—to get the matter put right. But I want to go further. My hon. and gallant Friend the Member for Finchley (Colonel Newman) has an Amendment on the Paper to add to my new Clause the words My hon. and gallant Friend (Colonel Newman) suggests the alteration of the word "agent" into "person." I am going to ask him to leave the word "agent." I think it is wider. It covers anybody or any person who does anything for the taxpayer. We propose to keep that word "agent," so that the widest scope may be given to any taxpayer who wants any kind of agent to appear.

If a taxpayer writes on the back of an old envelope "I appoint so and so as my agent," that will be satisfactory.

An Incorporated Society cannot very well speak. If anybody likes to appoint the Secretary of an Incorporated Society, he will be an agent, but it must be a living agent who can go and speak before the Commissioners. We propose to give a statutory right to reduce the assessment if, during the period of five years, the house goes down in value. Hon. Members put it to us, and I think quite fairly, that the assessment is being made in a difficult period, that the value of houses is falling, and that before another five years are over the value of some of these houses may have fallen. Very well, in order that there shall be no injustice done we propose to insert a Clause giving the owner the right to come down and say to the Commissioners, "My house has fallen in value, notwithstanding the reassessment of 1923, and I want it put right before 1928 "; and that can be done.

I now come to the difficult question of repairs. A very large number of people have pointed out to me that the existing allowance for repairs is not enough. The existing allowance for repairs, as all Members of the Committee probably know, is one-fourth where the houses are of an annual value not exceeding £20, one-fifth where they exceed £20 and are less than £40, and one-sixth where they are over £40. It was put to me by some of my hon. Friends that at the present day that is not a sufficient rise for repairs. I want the Committee to remember that those figures were Amendments made only last year. Prior to last year it was one-sixth throughout. Those figures were fixed last year, and are coming into operation for the first time this year. Still, there is something to be said for the fact that the Kent Restrictions Act, which is coming to a close, was passed very largely on account of the high rates and the high cost of repairs some two or three years ago. I do not think that the same figure applies to-day. I do not think that the cost of repairs is as high to-day as it was two or three years ago, but I am prepared to admit that the figure to-day is higher than it was in pre-War times. Therefore, the Chancellor of the Exchequer proposes to make a further concession. We want, not merely to do right in this matter, but we want to remove all sense of unfairness, because, after all, we want a country which pays its taxation willingly. [ Interruption. ] Every loyal citizen who has the benefit of the country—the Army, the Navy, social measures, education and so forth—must realise that we cannot do all this without taxation, and he should pay his taxation loyally so long as it is fairly assessed.

We propose in this case to double the limit for the allowance given to small houses, making the one-fourth of the annual value apply to all houses up to £40 instead of only £20. That, of course, is a very large concession indeed. Then we propose to extend the allowance of one-fifth to all houses of an annual value between £40 and £100, while, in the case of houses of which the annual value is above £100, we propose to give the allowance of one-fifth up to £100—that is to say, £20—and one-sixth of the amount by which the annual value may exceed £100. That scale gives a considerable accession to the allowance for repairs in the case of every type of house throughout the country, from the smaller houses up to the larger. To summarise, the allowance will be one-fourth up to £40, one-fifth up to £100, and, above £100, one-fifth on the first £100 and one-sixth on the excess over £'100. That is for this assessment. As I think the Committee knows, the payment of tax under this assessment will not take place until the 1st January, 1924, and it is only fair to tell the Committee that I do not want in this matter to have to re-deliver 9,000,000 new blue forms show- ing the amount of alteration in the allowance for repairs. Accordingly, I am giving instructions to the inspectors of taxes that, when the tax comes to be paid in 1924, these deductions which I am asking the Committee to pass to-day shall be made on the application form, and that only the smaller amount shall be charged against the taxpayer at that date. I also want to make it perfectly clear that, in addition to these larger allowances for repairs, if any owner is still damnified, or thinks he is, by the amount of repairs, he will still have the right to appeal under his five years' average, if he can prove that the repairs, on a five years' average, come to more than the figure which we have given under this present Clause.

I now come to the question of the Inhabited House Duty, and I have asked you, Mr Hope, to allow me to mention the Inhabited House Duty here, because it does dovetail in so very closely with the question of the concession or abatement which we are now proposing. We know that at the present time, in the case of a house of an annual value of less than £20, no Inhabited House Duty is payable at all; that where the annual value is between £20 and £40, duty is payable at the rate of 3d. in the £; where the annual value is between £40 and £60, the rate is 6d., and above £60 the rate is 9d. It will be seen that this is a very small rate of taxation indeed, quite different from the Income Tax rate of 4s. 6d. in the £; but, small tax though it is, it would be exceedingly irritating if half a million houses which had been exempt from the tax, as being under £20 in annual value, were suddenly brought within this small tax at the rate of 3d. in the £, owing to the fact that their assessments had gone up from below £20 to, say, £25 or £30. A good many Amendments have been put down with regard to this matter of Inhabited House Duty. The hon. Member for Colne Valley (Mr. Snowden) has put down an Amendment proposing that houses of an annual value up to £30 should be free, that the tax should be 3d. in the £ when the annual value is between £30 and £60, and 6d. when it is above £60. My hon. and gallant Friend the Member for Finchley (Colonel Newman) and my hon. Friend the Member for Barrow-in-Furness (Mr D. Somerville), who have taken a great interest in this matter, want to exempt houses of which the annual value was previously under £20 unless the new assessment is over £30. That, I think, is more or less the same proposal. My hon. Friend the Member for Farnham (Mr. A. M. Samuel) is not quite so, I will not say greedy, but not quite so ambitious in his proposal. He proposes that houses of which the annual value does not exceed £26, that is to say, 10s. a week, shall be free.

The Government have very carefully considered these proposals, and they desire to make a concession—though' I do not like the use of the word "concession," because, after all, it is not the Government's money, it is the money of the people, and we are merely the instruments of the people of this country to collect the necessary taxation in order to carry on the work of government. We want, however, to make such alterations as will insure that there is no injustice in regard to this matter. We propose, therefore, to exempt altogether houses under £30 in annual value. That meets the proposal of the hon. Member for Colne Valley, and of my two hon. Friends behind me. Then we propose that, when the annual value is between £30 and £60, the duty shall be at the rate of 3d. in the £, that when the annual value is, between £60 and £90 that it shall be 6d., and that only on houses of an annual value above £90 shall Inhabited House Duty be paid at the rate of 9d. in the £. That is practically the Amendment put down by the hon. Member for Colne Valley, so far as the first and second parts of it are concerned, but the hon. Member is not so hard on the houses of higher value as I am, and he would let them off with 6d. in the £. I think, however, that it is fair that they should pay 9d. The proposal of the hon. and gallant Member for Finchley and the hon. Member for Barrow is also met.

I want to tell the Committee, in conclusion, that this, of course, is going to cost a considerable sum of money. The cost of the concession on repairs will be just over £1,000,000, and of the concession in regard to Inhabited House Duty about £500,000, so that the total alteration which I am now proposing will have the effect of reducing the taxation laid down in the Budget in these two respects by about £1,500,000. There is something else which I am proposing to do, in order that there shall be an end to the constant misapprehension which has prevailed in regard to this matter. I am not saying that the speech I have made is a good one, but I am going to reduce its main facts and proposals to simple, ordinary language, I am going to have that printed by the Board of Inland Revenue, and it will be sent to every commissioner of taxes, every assessor, and every inspector of taxes throughout the country. It will also be published far and wide, so that whoever runs may read. I want there to be no misunderstanding in the future, and I do hope and think that the proposals which the Government have made are really such as will commend them to the sense of fairness of the House of Commons to-day. I want this agitation to end. It is not a desirable agitation; it is not a good agitation. It is not desirable to get people into such a frame of mind that they agitate, as they have been agitating, against the payment of these taxes. I do not want to pillory any hon. Member—I should not like to do such a thing; but let me tell the Committee what has been taking place. At a meeting, not very far from here, the taxpayers were urged, all of them, to fill up forms of appeal, in order to embarrass the Department to get the tax postponed for a year. [HON. MEMBERS: "Hear, hear!" and "Name!"] If I state where the meeting was held, it will indicate the constituency. [HON. MEMBERS: "Name!"] No.

I do not know whether he was a Conservative or not. The particular gentleman in question was a local councillor. I am not going to give the name, and I am not going to mention which side of the House it concerns, but it has occurred on both sides. Let me mention another point. I have in my possession a bundle of 160 appeals, which came in is one bundle, collected by canvassers from house to house, and, out of that number, 36 houses were assessed on the actual rents, and no notice of assessment had yet been delivered. The canvasser simply went round and got people to write a letter or sign an appeal form. In answer to a question some weeks ago, I made a statement, which was supposed to be a very foolish one indeed, that the number of appeals was not much above the normal number in the case of previous assessments. I was abused from one end of the country to the other, both in the Press and by anonymous letters, for making that statement. I will now give some figures. There are about 9,000,000 assessments, and there have been 550,000 appeals under these new assessments. If hon. Members work that out, they will see that it is very little about 6 per cent., and 6 per cent. is the normal proportion of appeals both for 1908 and for 1903. Of that number, one-third have already been settled between the taxpayers and the Inspectors of Taxes, and the Commissioners will not be bothered with them. Another one-third are in course of settlement, and I think I can perfectly safely assure the Committee that not more than one-third of these appeals, that is to say, about 2 per cent. of the total number of assessments, will ever need to go before the Commissioners of Taxes for final decision.

Has the right hon. Gentleman allowed for appeals that are still to be made?

I agree that there are some yet to come, but my experience is that when a man is going to appeal he makes his appeal pretty early, and I do not think that there will be many more appeals.

Is not the right hon. Gentleman forgetting that some weeks ago the Prime Minister himself, when Chancellor of the Exchequer, made a statement to the effect that the time allowed for appeals would be extended?

I have already said, not only that the Prime Minister made that statement, but that I have extended the time in my proposals to-day. Whether there is an appeal or not, I am convinced, and I think the Committee will be convinced with me, that the proposals I have made this afternoon are perfectly fair and perfectly just, and that they should meet all reasonable objections to these taxes. I hope, after the statement I have made, that hon. Members themselves will go to their constituents, where it may be necessary, and tell them that, as I said 20 minutes ago, it is the duty of English- men to pay their taxes loyally and willingly as long as they are fairly assessed and fairly collected, and that is the object of the Government.

In view of your ruling, Mr. Hope, that the general discussion on the Inhabited House Duty should take place on this Clause, and in view, further, of the concessions which the Financial Secretary has announced in regard to the Inhabited House Duty, I rise at once to express my appreciation and gratitude for those concessions. Before, however, touching further on that matter, I should like to say—and in saying this I am sure I am expressing the feelings of every Member of the Committee—how much we appreciate the frank and honest statement which has been made by the Financial Secretary in regard to the alleged grievances in connection with assessments under Schedule A. I may confess—indeed, I believe I said something to this effect in the general Debate on the question—that I never had very much sympathy with this agitation, which I regarded as being mainly a newspaper "stunt." The whole thing, as it seems to me, can be concentrated into a nutshell—should not those who enjoy income from rents, or who have the enjoyment of property themselves, pay Income Tax according to the actual benefit which they receive? I think we shall all agree upon that. Unquestionably, their assessments should be just and equitable, and, if any individual assessed on property under Schedule A has a real grievance, then the machinery ought to be adequate for dealing with and remedying that grievance. I think that the statement of the right hon. Gentleman will be received with much satisfaction when it is read in the country to-morrow, and I hope we shall hear very little of the agitation that has been continued during the last few months.

I now turn to the question of the Inhabited House Duty. Some of my friends have on the Paper an Amendment to abolish the tax, but, anticipating that was a demand too extreme for the Government to accept in the present circumstances, we have put forward an alternative Amendment for a reduction of the existing rate. I do not think the Inhabited House Duty can be defended on its merits in these times. It is an anachronism in our modern system of taxation. I believe it dates from and is the successor to the Hearthstone Tax which was instituted in the reign of good King Charles. Later the Window Tax was adopted as a substitute for the Hearthstone Tax, and when that was abolished the Inhabited House Duty was instituted. That was, I believe, about 80 years ago. The rents from property have completely changed during the last 80 years. In 1851, when the figure was fixed at £20, a house of £20 rental was something of a mansion. At that time a person paying a rental of £20 a year was assessed to Income Tax in the higher grade. But that is not the case to-day, and we have this anomaly, that the class of people inhabiting houses of a rental of £20 or even £30 a year are exempt from Income Tax.

These changes have necessitated a reconsideration of the whole incidence of the Inhabited House Duty. The right hon. Gentleman has practically accepted the Amendment in my name with one regrettable omission, that is that he proposes to keep the rate of 9d. in the £ on houses over £90 a year. I think that is very much to be regretted because, in view of the rise in rents, people who have to pay little in Income Tax have to pay rent in a great many cases of £90 a year. The duty on £90 a year is about £3 10s. a year. That is a very considerable sum and a rather serious burden in addition to the Income Tax they pay. I very much regret that the right hon. Gentleman cannot accept the Amendment in the form in which we have it on the Paper, but I am very grateful to him for this concession. The total revenue from the Inhabited House Duty is only about £2,000,000 a year. I have not the material for estimating accurately what the remission in my Amendment will cost the Exchequer, but I think it will be about £500,000. There are, I think, about 500,000 persons who will be fairly materially affected by the reduction of the rate which the Government have promised. There were about 500,000 who fell within the grade of £20 and £40 under the old system. Although the amount of revenue involved is not very large it is a serious matter to the individual taxpayers, and I am sure they will be very grateful. I am sure I am expressing the views of those associated with me in acknowledging our gratitude at the concession the right hon. Gentleman has announced.

I happened to be brought into this newspaper "stunt," as the hon. Member opposite calls it, rather prominently, being the Chairman of a group in the House who represent an organised body outside. I can assure the hon. Member that this is not a newspaper "stunt." I have had letters from all parts of England. I had a great many letters from the Division represented by the Prime Minister himself who asked me to represent to him the views of his own constituents. If the hon. Member had all the letters I have had of real cases of hardship he would see that these men have a really well founded grievance. It has come about in this way. The Government are trying to do a normal thing in abnormal times. We are trying to carry out this normal assessment at a time when we have not recovered from the effects of the War. A great many men came back from the War and wanted to settle down and bought their own houses. The Financial Secretary referred to men who had bought their houses during the War. I take it he means during and after the War. As a matter of fact, most of the houses were bought after they were demobilised.

I agree. The words of the Memorandum I am issuing are as follow:

"It would however be unfair for the purposes of this reassessment to estimate the present value of a house occupied by the owner on the very high prices which have been paid in recent times."

There is another question I have been asked to put with regard to the allowance for repairs. Does this concession apply to London as well as to the rest of the country? We have now got this very satisfactory statement from the right hon. Gentleman, but his promise is not quite clear. It should be published and broadcast up and down the country. The knowledge would save persons who are being assessed a good deal of trouble. The large number of letters I have received asking what steps should be taken to lodge an appeal show that the average man has forgotten, the War having intervened, what he ought to do when this assessment comes round. Now we have an absolutely plain statement from the Financial Secretary as to what he can do. It should be posted up in public places so that a man who dis- agrees with his assessment may know that he can appoint any person, even his own wife, to represent him before the Commissioners. That will be very valuable. I thank the right hon. Gentleman for the concession, and should like an answer to my question about the allowance for repairs.

I think the Financial Secretary, in spite of his open-mindedness, does not quite realise that this agitation had some real substance behind it. I think it was an expression of the great difficulty which a number of people of small means have in meeting their taxes at present. He naturally likes a cheerful giver, but when on top of the ordinary taxation a new and unexpected burden comes out as it were from the blue, he must not be surprised or merely attribute to the adventitious efforts of agitators what was, I think, a genuine feeling of the burden that was borne by the taxpayer. That amount of acknowledgment of the genuineness of the agitation must be made. However, I wish to deal more with Inhabited House Duty. I should like to thank the right hon. Gentleman also for having met critics of the Inhabited House Duty to a certain extent. I should have hoped he could see his way to give more generous terms to houses above £30, but the exemption under £30 is of course appreciable and will, I know, meet a number of cases of hardship which would otherwise have arisen. I think I agree with the hon. Member for Colne Valley (Mr. Snowden) in his criticism of the Inhabited House Duty altogether. In its present form I have never really seen any great justification for it. It is a tax which penalises anyone who lives in a house above a certain range of rent. It has not any of the features of an Income Tax. It is just a tax imposed, no doubt for purposes of revenue, for a reason which is very difficult to justify. I cannot help thinking that in our present difficulties it would have been well to go further and sweep it away altogether. The objection to the window tax was that as long as you had it you had few windows and small windows, and the objection to any tax which really falls on houses is that you have fewer houses and inferior houses, and I believe in our present impasse about houses we are in this absurd position. We wish to encourage the building of houses by grants and subsidies, and as soon as they are built you get these taxes falling upon them. Therefore I should like to see the abolition of the duty altogether on houses of a modest rent, reserving a sort of luxury tax upon houses of higher value. Perhaps the Financial Secretary would also tell me whether this new range of taxation affects other than private dwelling houses.

I did not want to complicate it with too many figures, but it will follow in the same proportion. Shops and hotels will also have the rate reduced.

There is a question I should like to ask about repairs. The Financial Secretary says that the provision at the present time allows an owner, who has spent more than the statutory proportion, to claim on the average of five years. I think his Department makes special arrangements for new entrants on to an estate where a five years' average is not allowed.

I am looking at this from the point of view of housing, especially in the country districts, where there is a real difficulty, and where the legislation of the Government will have no effect whatever. If on an estate repairs are undertaken above the statutory exemption then, by means of a maintenance Clause, an additional allowance is made to the owner if he repairs an existing cottage or small house. Would the Government see their way, when it is not a repair of an existing house, but a replacement by a new house on a new site, provided the existing rent to the owners is not increased, to make a similar allowance? Many of these old and decrepit cottages in country districts are in a very unsatisfactory condition, and require repairs that would not be possible at the present time. I think the whole of this arrangement about repairs is intended to encourage, as far as possible, the expenditure of money on repairs to cottages in the country, with a view to improving the housing there. I do not know whether that extension would require any statutory authority; I do not think it would; probably administrative action would be sufficient, but if it were done I think it would be of real value.

My last point is one in regard to which I am not quite certain whether the Financial Secretary will not think I am sinning against the canons of taxation. The right hon. Gentleman began as though it were a self-evident proposition that you must have equality of assessment between money invested in house property and money invested in Consols or any other forms of investment. Is he quite certain that that canon of equality is really desirable in the case of house property, especially small house property? You make an exemption in regard to Inhabited House Duty, the limit for which was originally £20, and is now to be £30. Would it not be worth while making a similar exemption in respect of Income Tax, so that any value of a house which is excluded from assessment for the purposes of Inhabited House Duty should be similarly excluded for the purposes of Income Tax? I admit that that would be differentiating between two different kinds of property, but you make some distinction in your Income Tax laws at the present time. For instance, in order to encourage life insurance, you allow a certain amount of income, which is allocated for the purpose of life insurance, to be excluded from taxation. For the purpose of building these small houses up and down the country, you cannot get an economic return of any money invested in house property; you can only get a very limited return. What is the use of making it more difficult by taxation? Why cannot you give a preferential rate, so as to encourage the flow of capital through private enterprise into this particular form of investment, which is a great social need at the present time?

I should have thought if you allowed an investor to exclude from his Income Tax return any money devoted to a social purpose which is demanded by the country as a whole, you would undoubtedly give a great encouragement to the flow of capital in that direction. The truth is, that when taxation is as high as it is at the present, and when the property tax is up to 4s. 6d. in the £, the Chancellor of the Exchequer has got in his hands, if he chooses to make abatements and exemptions, a very great power of encouraging the flow of capital in one particular direction or another. It is done in the case of life insurance, for no earthly reason except that you wish to encourage thrift and the habit of saving. We are all absolutely baffled by the house problem. We cannot get a sufficiency of houses at the present time. I would ask the right hon. Gentleman to look at his first canon of taxation with an unprejudiced eye. He has brought, as we see from the terms of his speech to-day, a very fresh mind to bear on the question, and he has looked at the points which have already been suggested. The right hon. Gentleman has already given us £1,500,000 in taxation to-day. I do not know whether I can press him for some more, but I think he might consider the case I have put to him. By this suggestion of some change in taxation you might do a very considerable amount to encourage the erection of houses where they are otherwise not very likely to be built. I am concerned with this rather from the point of view of building in the country. The towns can look after themselves; the country is doing nothing whatever, or very little. If we leave this whole problem for another 10 or 20 years, till the houses get more and more decrepit, and less and less satisfactory, there is going to be a real critical condition over the whole of the countryside. If the right hon. Gentleman can make this exception in his system of taxation, he may do a very great deal to relieve the evils which will otherwise come upon us.

I will not follow the hon. Gentleman who has just spoken in his excursion into the philosophy of taxation. In regard to the concessions which the right hon. Gentleman has made, it will be sufficient if I confine myself to a very few words, and that by way of a question. May I say, first, that I think not only this Committee but the taxpayers outside will be exceedingly glad to hear the last thing which my right hon. Friend said, namely, that he meant to publish the statement he has made, in a very clear and simple form, such as the man in the street can understand. Really and truly, while I do not go so far as to say that this has been a "stunt"—it has been only partially a "stunt"—what hag really happened is that the man in the street has not understood the situation, and it has caused a great deal of trouble. There are a great many serious anomalies and difficulties from which the taxpayer suffers, but one of the main things is that he does not really know where he stands. In regard to my right hon. Friend's statement, which is going, I understand, to be given the widest publicity—I am requested to ask him when it is going to be published—may I hope that such steps will be taken that it will be in the hands of every person who can read. Many people, when they go to the Inspector of Taxes, receive information couched in such language that they gain from the Inspector the impression that what he has said is final, and that there is really no further appeal. Of course, we all know much better than that, but the very little taxpayer, in the very remote district in the country, does not know that.

I hope, in the right hon. Gentleman's statement, it will be insisted upon that all the officials concerned—whether it be the assessor, who is the official of the Commissioners, or the inspector, who is the official of the Inland Revenue—will be required, at all times, to state to everyone who is a taxpayer with whom they come into contact that there is this appeal to the Commissioners, whose address should be given. I suggest that that is a very desirable thing to include in the right hon. Gentleman's statement. I think the right hon. Gentleman's concessions all the way through are very admirable, and I believe they will be received as such. At this moment I cannot say what will be the exact result of the figures he gave as to the allowance for repairs, but on the face of it it looks—I was going to say, generous—fair and reasonable. I know perfectly well that one of the things complained of has been the fact that many small people, whose rents have been put up 40 per cent. by the Rent Restriction Act, will have to pay taxes on that, whereas a certain proportion of that 40 per cent. was given in order that it should be laid out on at specific purpose. I do not know how far the right hon. Gentleman's concessions cover that point, but, on the surface, they look as though they do reasonably cover it.

There is only one other point, and that is with regard to what the Financial Secretary said about the onus of proof. I understood him to say that there was no onus of proof at the present moment on either of the parties to any dispute of this kind. He said he did not propose, therefore, to transfer the onus of proof to any other person. There was no other person, but evidence should be given on oath on both sides to the Commissioner, who should decide. I am not quite sure whether that is absolutely a representation of the fact. Whether that is a fact in law I do not know, but in custom we know that the onus of proof has lain on the appellant. The official concerned has made the assessment, and I think the attitude of the Commissioners generally, and when it has gone to the Courts, the attitude of the Courts, has been that the appellant has been in the position of having to disprove something which is before the Court. In other words, the onus of proof has really lain on the appellant. I do not know how far my right hon. Friend's suggestion, or the wording of it, is going to meet that point. I know the difficulty he is in; he has no authority over the Commissioners; they are an independent body.

All I suggest is that it is perfectly open to the right hon. Gentleman, as the working head of the Treasury in this matter, to point out to the Commissioners that, if they have been in the habit of expecting the onus of proof to be on the appellant, so far as the future is concerned, that is no longer to exist; there must be absolute fair play between the parties; and that there should be, at any rate, no onus of proof on the appellant in the matter. I suggest that the right hon. Gentleman's statement should be so worded as to make it perfectly clear that if the officials of the Inland Revenue state that there has been a change in values, they must prove that there has been that change. Every one of these cases must represent a statement by someone that there has been a change in values; all I ask is that in the right hon. Gentleman's statement it should be made perfectly clear that the persons alleging that that change has taken place shall be required to prove it. If that be done; if the right hon. Gentleman makes some suggestion to the Commissioners that that is really what should be done, especially under the abnormal circumstances of the case, I think he will find that the agitation to which he referred, and which he desires to put aside, and which we all desire to put aside, will very speedily vanish.

5.0 P.M.

Owing to the course this Debate has taken, I feel it is not necessary for me to detain the Committee at any length, but I think there are several sides of this problem which deserve consideration. The members of the Committee will realise that we have arrived at a curious result this afternoon. The agitation which arose in connection with the revaluation of property was, after all, a protest against a higher valuation. The proposals which the Financial Secretary to the Treasury has made this afternoon are proposals which involve a concession in the Inhabited House Duty, a concession in the scale of repairs allowances and also, not only under this Amendment, but under later Amendments, a concession in the date of lodging appeals. All these things are quite separate and distinct from valuation as such, and yet the proposal we are discussing to-day is the problem of arriving at the annual value of property. I venture to think that the Financial Secretary to the Treasury is a little optimistic in believing that he has found a solution of the difficulty in the Amendments he proposes. As a matter of fact, I think the solution of the difficulty is to be found in the programme outlined some years ago by the Royal Commission on Income Tax, which is very relevant to what we are discussing now. The Royal Commission pointed out that it was necessary to make certain changes as between Schedule A and Schedule D in regard to certain classes of property; that the great bulk of the property fell under Schedule A but that there were certain classes of property which were still on a profits basis and which the Royal Commission recommended should be put under Schedule D. That step has not, so far, been taken, and I think the Financial Secretary to the Treasury will find, on closer investigation, that it is a problem which crops up throughout this whole difficulty of valuation, and I am not sure that it will not confront him in connection with the very concessions which he himself makes.

There is another consideration which I think is of even greater importance. The Royal Commission recommended that something should be done, to put it in popular phrase, to regularise the position between the Metropolis under its special Act of 1869 and other separate Acts, and the country as a whole, and on that point no steps have so far been taken. In London this leads to very curious results. The Financial Secretary to the Treasury will probably recall that three proposals were made. One dealt, as regards the Metropolis, with the void houses or unlet property. If property is unlet for a period of one year, no tax can be levied upon it, although the owner of that property might be drawing rent under a lease. That has not been remedied, and I am told that it is a substantial difficulty in the City of London. There is another difficulty in the property which is let at fancy rents. Where these fancy rents are in existence—this covers, for instance, licensed houses and other properties—in the Metropolis the valuation is taken on the Poor Law basis, which comes as near as possible to the normal rent, but which is a very different consideration from the fancy rent being paid. Why should the people who get these fancy rents escape full taxation? Why should not that reform, among others, be introduced before we go on to the scheme of concessions we are now discussing? We must get a proper basis for what the Chancellor of the Exchequer proposes to-day. There is another point. There is property let to the Crown. The Crown is not exposed to Income Tax, but the owners of that property have claimed certain exemptions in respect to the Crown. That is the position as between the Metropolis and the rest of London, and beyond that the country as a whole, and I would press upon the Chancellor of the Exchequer this consideration, that it is wrong to go on holding out other concessions that may be perfectly useful and valuable unless we are to get a proper basis of valuation and put the whole thing on a sound footing.

There is one other proposal, of a wider character, in discussing which I think I will have the sympathy of many Members of the House. The Royal Commission, in discussing the whole problem of the valuation of property in this country, drew attention to the very serious difference between the method in England and Wales on the one side and Scotland on the other. In Scotland we have the principle of annual valuation. As the Financial Secretary to the Treasury pointed out this afternoon, the practice in England has been a quinquennial valuation. Owing to War conditions, there has been no revaluation since 1910, and in considering the hardships of the position of house proprietors we must keep in view that, because of that non-valuation since 1910, they have escaped a considerable amount of taxation within recent years. In 1919 the Royal Commission considered this problem and drew attention to the amount of taxation that had escaped up to that date. Since that time there has been further accretion. I entirely agree that we cannot, for all reasonable purposes in valuation, take into account the fancy prices which had to be paid during the War period, and I venture to agree with the Financial Secretary when he said that we must, as I understood his speech, exclude that element in fixing the annual valuation and try to get down to what is the sound principle in valuation, which is what the house would bring, taking one thing with another, in a reasonable market, over a reasonable period. But, after we have put it on that basis, we must recognise, even when we have excluded the artificial war element, that there should be a substantial increase over pre-War valuation. I think that is beyond the shadow of a doubt.

The whole question is whether the principle which the Financial Secretary has enunciated this afternoon is going as near as possible to putting that increase on one side of the valuation roll and at the same time excluding on the other side the artificial element due to war-time conditions. On that point I hold very strongly the view that I do not believe you can arrive at a result of that kind on any basis other than annual valuation. Whenever you get valuation of five, three or two years, whatever the period may be, you tend to get away so far from the actual conditions. You delay revision and you introduce a number of other complications of which the Royal Commission in 1919 was very fully aware. The Royal Commission recommended that in the case of England and Wales we should, at the earliest possible moment, take steps to get to the Scottish basis, and that without delay, as soon as the staff could be trained and other devices introduced, England should be put on the basis of annual valuation. They recognised that that could not be done at once and that a certain time would be involved, but it is the only fair basis of adjustment of taxation in this country if you are to do justice as between England and Scotland and if you are to keep as close as possible to sound principles in valuation. It will be quite clearly seen that all the concessions we have received this afternoon—and along with the hon. Member for Colne Valley (Mr. Snowden) I welcome them—do not come anyway near to the problem. We are not getting at the root of it. Do not let us mislead the people who are pouring in their appeals. It would be better to say to them, and I hope the Government will say to them, that we intend as soon as possible to get down to annual valuation. As I have said, we in Scotland have had the principle of annual valuation. There is no difference for all practical purposes in Scotland between the assessor of property and lands on the one side and the inspector of taxes at the present time. The inspector of taxes is the authority in the overwhelming majority of cases, and even where he is not the authority for this purpose of valuation, there is a working agreement which means that the common basis is taken throughout. There is no conflict between the two authorities.

Because of the annual valuation in Scotland, we north of the Tweed in recent years have paid more in proportion than we should have paid to the Income Tax of this country, if there had been in force south of the Tweed, not the valuation which was that of 1910, but one which was reasonably up-to-date. In the Scottish case certain technical conditions have intervened, but at the present time I am told that the figure for 1919–20 is the figure which is entered in the valuation roll and the taxation is proceeding upon that basis. A few days ago I asked a question of the Chancellor of the Exchequer, what steps he proposed to take to regularise the position between England and Scotland in this matter. The right hon. Gentleman quite frankly stated that that was a consideration which would have to be taken into account in any future readjustment of the financial relations of the two countries. He appears to concede in this case that, contrary to all argument and tradition, Scotsmen and Scotswomen are paying more than their share of taxation. I have thought it well to put these considerations before the Committee because they are fundamental to the problem we are discussing. I welcome what the Financial Secretary has done, but I hope before this Debate closes he will make some statement which will go down to the root of the difficulty.

I am very glad to have an opportunity of tendering my appreciation and thanks to the Financial Secretary to the Treasury for the concessions he has made. This is a matter in which I take a great deal of interest. It appeals particularly to a constituency such as mine, where we have a very, very large number of small houses which would all be brought under the Inhabited House Duty if these concessions had not been granted. There is one point I would like to have an answer to. In the quinquennial valuation the owner has a right every year to ask for a revaluation. I take it that, on the other hand, the Commissioners of Income Tax will not have a right to increase the valuation every year? In that connection I hope the Government will not accept the suggestion made by the last speaker, that we should have an annual valuation. I do not think that many people realise the enormous amount of work involved in these valuations. Even by the present small revision of the tax it will mean about half a million additional forms to be sent out. I am referring particularly to the valuation in England rather than in Scotland. In London alone, hundreds of thousands of new valuations are made every year, and a general annual valuation would mean an enormous increase in staff and the cost of administering the tax.

I think the Financial Secretary will agree that we on these benches have never from the beginning of this agitation attempted to make any political capital out of it, and that we have occasionally supported him against the more extreme section of those who were agitating outside. We appreciate the concession that has been made to us, and we appreciate the fact that the Government have not given way to the demands that this valuation should be postponed for a year, or for some indefinite period. The clerk or the business man or the tradesman who has had his income increased by £20 has had to pay Income Tax on it from the year that the increase began, while owners of houses who are certainly drawing a higher rent than in 1910 have before, during and since the War been assessed upon the basis of 1910. The demand that has been made in Amendments upon the Order Paper, that this system should continue for another year, and so incur a further loss of from £7,000,000 to £10,000,000 to the Exchequer, would have been grossly unfair to every other tax payer in the country.

There is one point in which, I think, there is a real gap in the Amendment moved by the Financial Secretary and perhaps with the conciliatoriness which he has displayed he will endeavour to see whether the gap cannot be filled before the Report stage is reached. There is no obligation on the Inland Revenue at present to send notices of the new assessments to all the individuals to whom they apply. If the notice is posted on the church door, and so on, the Act of 1922 does not require that notices should be sent to the individuals whose assessments have been increased. The right hon. Gentleman will know that in many thousands of cases no such notices have been sent, owing to lack of time or lack of staff at the disposal of the Inland Revenue. The Amendment is intended to deal with this difficulty as far as the owner of property is concerned who has not received his notice. The first occasion on which it is brought to his notice that this increased assessment has been made upon him will be when he receives the demand next December, or when his tenant in paying his rent deducts the increased sum from the rent. That will not be until December, and it may not be until next year.

In that case, his right of appeal, even under the extended period of three months, will have elapsed. The right hon. Gentleman has dealt with that by providing that if an owner of property has not received notice he may appeal up to April, 1925. The point that I wish the right hon. Gentleman to consider is that there is no such right given in this Amendment to the tenant. He may say: "The tenant does not pay the tax; what does it matter to him?" Nevertheless, thousands of tenants may desire to appeal. They have the right to appeal now, and in many cases do so. The reason they may desire to appeal against the new assessment is that it is generally believed, and probably correctly believed, that this assessment for Schedule A will have a very great influence upon the assessment for rates. That is a fundamental matter for the tenant. Not only is it likely to have a great influence upon the assessment for rates, but it will have a certain and immediate influence upon the assessment for Inhabited House Duty. In these circumstances, tenants may desire to appeal, but they will not know of the assessment until next December, or next March, and under the Amendment as it is now drafted when that time arrives their right of appeal will have run out. I did not put an Amendment down on this Question because it did not come to my notice until it was too late.

The right hon. Gentleman has been so conciliatory that I am merely putting the matter before him in the hope that he will take this matter up and deal with it on the Report stage. There is only one further matter with which I wish to deal, and that is the Inhabited House Duty. I wish to explain the reasons why we object to this duty in its present form. Anybody who examines the Inhabited House Duty, with the concession that the right hon. Gentleman has made, must come to the conclusion that the duty ought to be either drastically renovated or abandoned. To begin with, it starts too low. We object to Inhabited House Duty on houses of as low a rental as £30 a year, for the same reason that my hon. Friend the Member for the Hillsborough Division (Mr. A. V. Alexander) is going to move an Amendment objecting to the tax on sugar, and also for the same reason that we object to the tax on bread. We object to it because a house of a certain minimum standard of accommodation and space is a necessity of civilised life, and a tax upon these houses of low rental value is a tax upon the health and stamina of the people. We would go further than that. This Inhabited House Duty is unfair, not only to the workers in the low-rented houses, but to the poorer section of the middle classes. It is unfair to the moderately-off section of the professional classes. Clerks and business men in large towns have to occupy houses in the centre of the town, where the rents are high, not because they wish to live luxuriously, but because they have to be near their business. This duty is also unfair to the professional man. What is the result of the Amendment? The professional man living, say, in a suburb and paying £90 a year rent will pay 9d. in the pound, while the wealthy man living in a mansion rented at anything up to £1,000 a year will pay exactly the same rate.

The duty ought to be graduated so as to press less heavily on the working classes and the middle classes, and should take a larger proportion from those who occupy the large houses. The duty contradicts every principle of taxation which we have established in connection with Income Tax. In the Income Tax everybody in this House acknowledges the principle that the only fair method of levying the tax is that, as a man's income increases, the rate of tax increases likewise, not only the amount of the actual rate of the tax, but the percentage of the income that is taxed. Exactly the opposite principle is followed in the case of the Inhabited House Duty. This matter has been to some extent worked out in certain figures put forward by Sir Josiah Stamp, whom I am always fond of quoting in this House because he is our chief authority on this subject. It is a well-known and admitted fact that, broadly, as income goes down, the proportion of that income spent in rent increases. The working classes spend a larger proportion of their income in rent than do the middle classes, and the middle classes spend a larger proportion of their income in rent than do the wealthy classes.

The result of a tax levied upon rent is that the rate increases as the income goes down, and it is, therefore, founded upon a fundamentally different principle than the Income Tax. Sir Josiah Stamp has calculated the matter out in the form of Income Tax, and reckoning different incomes and how much they pay in Inhabited House Duty, his figures show that a man who is receiving an income of £2,000 a year pays a much lower rate than the man receiving an income of £1,000 a year; the man receiving an income of £5,000 a year pays at a lower rate than the man receiving an income of £2,000 a year, and the man receiving an income of £50,000 a year pays at the lowest rate of all. That is why, broadly, we object to this form of duty in its present form. It is vicious in its principles, it is unfair to the working classes and the middle classes, and it ought to be once again examined so that it might be either renovated or abandoned.

I join issue with the hon. Member on the first and third propositions he has made. Though it may be a subject for minute examination by the philosophers of the Labour party, it seems to me totally irrelevant to differentiate between a tax on incomes and the Inhabited House Duty. He suggests that there should be no such thing as Inhabited House Duty for the smaller type of house. He has referred to the Amendment of the hon. Member for Hillsborough (Mr. A. V. Alexander) in favour of the abolition of the tax on sugar and other commodities. It comes to this, that hon. Members opposite claim exemption from all taxation for certain portions of the community. That, obviously, we could not assent to, because the right of representation depends upon taxation, and every portion of the community should bear their share.

I said that there was to be a general discussion, but the discussion has become wider and wider, and the hon. and learned Member, although he is replying to the last speaker, is now giving an even wider interpretation to my ruling.

I have no desire to do that. I seldom speak in the House, but I do not desire to expatiate on the errors of Socialism. I wish particularly to refer to the question of proof. I do assure the right hon. Gentleman that there is substance in the objection. It may be that he will not find any distinct obligation upon either party as to which should prove the case, but I think he will find that the practice has grown up that appeals against Schedule A have followed for very many years the statutory practice in regard to parochial assessments, and in that case it does mean that the authorities prima facie establish the value, and that value has to be disproved by those who appeal against it. I think that that may be very well in the case of the parochial assessment, because that is prepared by the overseer and his assistants, who know every property in the parish. Instances of that are constantly capable of proof. If the house is added to the overseer or assistant-overseer is quickly on the spot to inquire into the particulars of that addition. They have at their fingers ends the whole knowledge of the neighbourhood, and therefore what may be quite well in their case is a different thing from Schedule A, which is assessed by the Inland Revenue, especially now, when they appear to be acting—I do not express any opinion as to whether it is done legally or illegally—through valuers belonging to a State Department who have no statutory authority in the matter.

I say, with some knowledge of the subject, that in the case of valuations in relation to big properties there have been no instructions in many cases, and no knowledge at all, and, indeed, those valuations are wholly irreconcilable with the local assessment committee valuation. I would ask, in those circumstances, my right hon. Friend to consider the matter, and, even if he does not go so far as to say that the burden of proof shall be on the Crown, that he should say that there will be no assumption of value on either side until evidence is given. One is constantly hearing of most ingenious letters written by officers in connection with values, inviting, one might almost say, the fly to enter the, spider's parlour and supply information which obviously the other people have not got, and without which they should not have made the valuation at all. I hope that my right hon. Friend will not dismiss that very important matter simply by assuming that because there is no statutory rule there is no practice.

One word now in reply to the hon. Member for Central Edinburgh (Mr. W. Graham). It has been pointed out already that to assimilate the practice in England with the practice in Scotland would be a very difficult thing. The prospect of an annual assessment and an annual valuation throughout England is an appalling one. Most of us are never free from forms of one sort or another. We are constantly being ordered, subject to penalties enforceable in 21 days, to fill up forms of all kinds until we are heartily sick of the whole business. I hope that the Government will resist such a proposal. Having got rid of a subject which used to weary the House year after year for decades, which was founded on the allegation that there was a grievance on the part of Ireland with respect to its financial relations with England, we are now finding it suggested that there is a grievance with respect to the financial relations between England and Scotland—[HON. MEMBERS: "And Wales!"]—and we are told that Scotland has been paying excessive Income Tax, because we have not got an annual valuation in England. I hope that the Government will have mercy on the people of this country and not inflict an official annual valuation.

I hope my hon. Friend the Member for Keighley (Mr. Lees-Smith) will forgive me if I contend that he concluded his speech by a very powerful appeal in favour of the precise case which he opened his speech by refuting. He concluded his speech by drawing attention to the manifold anomalies and hardships of this form of taxation in relation to the Inhabited House Duty in particular, and of re-assessment in general. But he began his speech by saying that there was no case whatever for postponing for one year the operation of this tax for one purpose only—to permit of a full and adequate inquiry into this method of taxation. Of course, it was not for a moment suggested by these Amendments in the Paper that the Treasury should forego for one year all taxation from this source. It was intended to force the Government to grant that which they had previously refused—a full inquiry into the whole basis of this taxation. The only way that that purpose could be achieved within the limits of order was by moving to postpone for one year the operation of this tax. But the Government have made certain considerable concessions, and in view of those concessions these Amendments will not be moved on this occasion.

I trust that we shall have an opportunity, prior to the Report stage, of seeing the statement issued by the right hon. Gentleman and observing precisely the effect of these concessions. It will then be open to us, if the concessions appear, after due consideration, to be immaterial, once again to take up that line of attack. But I may point out that, if these Amendments had been carried, it would have been possible for the Government to grant the inquiry which was demanded, and to reinsert whatever words were necessary on the Report stage. That was the object of those who were merely trying to get the impartial inquiry into the whole question which has been demanded throughout the country. The right hon. Gentleman has made a considerable concession, and that success in this direction will possibly compensate those who have undergone his castigation for assisting in some degree those who have taken part in this agitation. But it is always inadvisable to be discouraged by success, and I will therefore urge upon the right hon. Gentleman a few additional considerations as to what is being demanded in the country.

The concession in regard to Inhabited House Duty is a real and considerable concession and will be welcome throughout the land. The other concessions do not amount to quite so much. It has been pointed out by my hon. Friend the Member for Central Edinburgh (Mr. W. Graham) that these concessions are purely in the sphere of appeal and do not deal with the grievance in any way—that of the valuation. After all, the agitation is directed against the extraordinary anomalies that have arisen under this valuation, under which houses of precisely the same character, standing beside each other in the same street, are assessed at widely different amounts. In some cases the assessment of one house is precisely double that of a house of exactly the same character which stands next door. Extraordinary anomalies have arisen in which houses have been assessed at greater amounts than the actual rental which has been paid. Hon. Members will be aware that in those cases the loss falls on the tenant, and that if the assessment exceeds the rental in respect of that amount the tenant has to pay.

Anomalies of this sort on a widespread scale are not going to be met by any greater facilities for appeal. What the country demands, in the first place, is a fair and just basis of taxation. The right hon. Gentleman, in effect, is saying to the country, "We admit that the basis is wrong, but we will give you greater facilities for appeal." He says, "You must not go into this dog fight of appeal, but we will give you a slightly better chance of carrying out unscathed." That is what the concessions amount to. That does not satisfy the country. In detail he puts forward two Clauses. He makes two concessions. He says that the period for appeal shall be extended until August next. That is not a material concession. If everybody who is wronged in this matter is to get justice, practically everybody will have to appeal, and if they do appeal, then the machinery will break down. The right hon. Gentleman prided himself on the fact that a lot more people than is usual have appealed on this reassessment, and I think that the explanation is very simple. The country has been waiting to see if Parliament is going to remedy this injustice before they undertake the expense and trouble of an appeal.

I prophesy that the right hon. Gentleman will discover that there will be a great many appeals, not of a machine-made character, but genuine appeals, in the course of the next few months. The right hon. Gentleman talks of machine-made appeals. Does he think that people are going to make frivolous appeals of this nature in face of the deterrents and threats held out by the inspectors of taxes? The men who appeal are liable to have their assessments not decreased but increased, and many people are being warned of that. What is more, these men are liable to pay the whole cost of the appeal, not if the case fails in its entirety, but even if they are partially successful. If a man is assessed at £100, and puts forward the claim that his assessment should be £60, and the ultimate outcome of the appeal is that he is assessed at £80—that is that he is partially successful—even then, if he is not entirely successful, he can be called upon to pay the costs of the appeal. With threats of that sort hanging over them, is any man likely to appeal frivolously and run the risk of having his assessment raised, and incurring considerable expenditure?

The right hon. Gentleman made a further observation. He says that if, after the lapse of a year, values decrease then appeals will be heard. I would like to point out to him the dilemma in which this places him. It must be assumed that if this great housing scheme of the Government is going to be a success in the course of the next year or two, all values will decrease and everybody will consequently appeal, and in that case the machinery will break down. On the other hand if the right hon. Gentleman says that people are not going to appeal on this scale, then he is admitting from the outset that the Government's own housing scheme is doomed to futility, and will not affect housing valuations in any way. Therefore I suggest that these concessions of the right hon. Gentleman, in relation to greater facilities for appeal, present no real concession whatsoever, and will end in endless confusion and fresh expenditure both to the taxpayers and the department concerned. Why cannot the right hon. Gentleman make this slight concession, and grant an inquiry from the outset into the whole basis of this form of taxation, and get the thing put on a just basis and save the eternal process of drifting on, until you get the whole system into a state of muddle and confusion, and then after the loss of much money and time granting the concession which you have refused in the Bill?

Cannot the right hon. Gentleman see the conflict of opinion, even of expert opinion, on this subject? Nobody has made out the basis of the present reassessment, and, indeed, very few people have succeeded in laying down a proper basis for such an assessment. We find so great an authority as Sir Trustram Eve writing to the "Times," and saying that a maximum increase of 10 per cent. can be imposed throughout the country. That amounts, in fact, to a flat-rate interest. Practically every other great expert denies the possibility, the feasibility or the justice of a flat-rate increase, and thus you have a great conflict of opinion of this subject among experts, and no expert and no plain citizen has yet succeeded in making out the basis laid down by the Government. I hope that the right hon. Gentleman's statement, when it is issued, will elucidate that matter, and I am sure, at any rate, it will be a very lucid and comprehensive statement. I ask the Government to reconsider their position in this matter. They are open to reproach on one of two scores. In the first place they are open to the reproach that they are taxing people for their own folly. After all, this taxation is levied on the inflated values of house property, and those inflated values are due to the failure of the Government to grapple with the housing problem. The Government failed, during the four years after the War, to deal with the housing problem; values became inflated, prices rose, and now the wretched people who were blackmailed into buying at inflated values in order to get roofs over their heads, are told they will be taxed upon those inflated values. Then, again, the Government is open to this reproach, and it is a reproach under which no Government should lie. They recently gave a remission of 6d. in the £ to the Income Tax payer. That has gone to wealthy people, to people who pay Super-tax, and who are multi-millionaires, and now the Government propose to recoup themselves for this remission of taxation by squeezing unfairly some of the most overburdened classes in the community, including the very poorest class. Here is what the right hon. Gentleman the Financial Secretary said on 13th June in this House: position as to secure, at any rate, that the glaring anomalies and injustices and the manifest unfairness of this reassessment shall be modified. There is still, despite this concession, a very grave case against the position of the Government in this matter, and I trust before the Report stage the right hon. Gentleman will consider whether or not he Cannot grant an inquiry into a question which so far has baffled and perplexed all expert opinion—namely the basis of this form of taxation.

I desire very briefly to answer one or two of the points raised by the hon. Member for Harrow (Mr. Mosley) and by my hon. and learned Friend the Member for Ealing (Sir H. Nield). I should like at the outset to thank my right hon. Friend the Financial Secretary to the Treasury for his admirably concise and clear statement and also for the concession he has given in regard to this very difficult and important matter. The hon. Member for Harrow endeavoured to draw for us a picture of a wasteful bureaucracy and of autocratic inspectors who brook no discussion, but say to us, "You have to take my ipse dixit and the actual assessment which I myself have made." How very far that is removed from the real facts of the case? The assessments are not the acts of any bureaucracy. I am glad to think that the present Government—and my right hon. Friend has said so more than once—has not the smallest intention of abolishing either the general or the special commissioners of Income Tax. The assessments are laid down by two of the special commissioners, and no assessment, out of all the numbers which have been published, has gone out without the signature of the commissioners. The hon. Member for Harrow asks that there should be an inquiry. An inquiry really means a "put off." Far too many people have escaped their proper legal obligations to pay Income Tax upon the increased value, and I am glad to hear from the right hon. Gentleman that there is not the smallest intention on the part of the Government of putting oft the date of the increased assessment a single instant further. Those who have got increased incomes will be called upon to pay increased taxation which is only fair and just.

Turning to my hon. and learned Friend the Member for Ealing, I may say that I have for many years served as a commissioner of Income Tax and I assure him and the House that the Financial Secretary is taking up the only attitude that is possible in the circumstances. It would be very unfair indeed if he were to lay down in the Memorandum which is to be issued that the onus of proof is to lie on one side or the other. The hon. and learned Member naturally approaches this matter from a legal standpoint, but we are not hampered or trammelled by the differences which may arise in an Appeal Court, nor are we bound by the various kinds of judicial evidence one way or the other. We take the case fairly, on its merits, as it comes before, us, and the only question which we have to ask ourselves is at what amount would the particular house be let to a willing tenant from year to year. When wet arrive at that decision we give it, and the procedure suggested by the hon. and learned Member would be entirely out of place. The right hon. Gentleman the Prime Minister, in answer to a supplementary question, about a fortnight ago, went to the root of the whole matter. These assessments are being decided by local commissioners with their local knowledge and, although I say so myself, I believe there is no fairer tribunal before whom the authorities could go than the Income Tax commissioners who have done their work so well in the past. It has been suggested that we are going to be snowed under by the large number of appeals. I think that some of the speeches made are rather unfair to the surveyors and inspectors of taxes. They, in every case, try to meet the points brought before them in a fair and reasonable spirit, and I do not think for one moment they go out of their way in order to be advocates of Inland Revenue or to take up a partisan attitude on behalf of Somerset House. That is not our experience. I hope the Financial Secretary will not give way to the suggestion made by the hon. and learned Member for Ealing of putting upon one side or the other the onus of proof, but will leave it to the general commissioners to try the cases fairly as they have done in the past.

6.0 P.M.

I desire at the outset to refer to an interjection which I made during the speech of the right hon. Gentleman the Financial Secretary in reference to the occupying owners of houses. Those occupying owners are surrounded by rack rents, and I was led to make the remark by the trend of the right hon. Gentleman's remarks and because I felt that possibly the only opportunity of bringing the argument to his notice was in that way. But when I made that remark I did not mean it in the sense in which it was taken. The putting on of this tax is to me one of the things which militates against an improvement in family conditions in this country. When a man with a family, who is struggling to get better conditions for his family, moves into a better house, makes an effort to get more accommodation, better segregation of the sexes and better air, what do you do to him? This man is making a personal effort to improve conditions from the health standpoint, and we say to him, "Because you have some ideals and desire to improve the conditions of your family, we shall increase your taxes, and because of every effort you make towards improving the conditions of your family by going into a better house, in a better district, we are going to make it more difficult for you financially." That is what I am quarrelling with. In reference to what has been said about rack rents surrounding the occupying owner, you will find districts growing up round our large cities, where there has been development in transport service by trams, and so forth, and you find that the rents there bear no relation to the houses. Values are created in those districts proportionate to the transport facilities, and the Government allow this increased value to be taken right through. The right hon. Gentleman began by saying that the houses had increased in value. I should like him to prove that statement. By what process can you show that if a house has been papered and painted it has therefore increased in value as a house? The right hon. Gentleman contradicted that statement when he went on further and said there were going to be certain allowances for repairs. Anything which is made and finished, and which gets into a state where it requires to be repaired, has not increased in value. You do not buy a repaired pair of boots at the same high price as you would pay for a new pair not yet in need of repair. The argument that these houses have increased in value is an attempt to sidetrack the real question. What has happened is this, that the house and what we are speaking of as the value are two separate things. The value is created, not by the condition in which the house may be, but by the scarcity of houses, and you propose to tax, not on the basis of the value of the house, but on what proportion of high rack rents can be extracted from the occupiers. I say quite frankly that you cannot do this sort of thing and mete out justice. You have made a very definite effort to grapple with the question of repairs, but you have not touched the fringe of the subject. A statement was made about prices becoming more normal, and that to-day there was a level struck so far as the cost of materials for repairs was concerned, but there is nothing of the kind. There are still fluctuations going on in building materials. They slack down for a month in order to try and get people to place contracts, and then they put up the price, and that is why you are having all these complaints. The contractor is being set upon by these conditions, over which he cannot have any control. I am grievously disappointed with the effort that has been made towards assessing the real value of housing accommodation. There can be no sense of justice left in any consideration where what is the real value is left out. You are trying to assess, not the value of the house, but on the basis of the scarcity of the house, and as you do that you increase the value of the land. Now I am getting out of order.

While you are trying to legislate in this way, you are trying to tax a man who is trying to make things better for his wife and children, and every time he makes an improvement, you try to crush his effort. The land upon which these houses are situated increases in value, and you never notice that, nor do you assess the land.

I wish to associate myself with what has been said in regard to the admirable statement of the Financial Secretary to the Treasury, which I think shows the Committee that a man who has already an immense experience in dealing with taxation problems is a distinct asset on the Treasury Bench, and I am sure we all congratulate the right hon. Gentleman on the clarity and comprehensive character of the statement he made. I entirely associate myself with the suggestion that every step should be taken to make this as widely known as possible throughout the country. A short time ago, when this agitation, as it has been described in the Committee to-day, became increasingly manifest from certain highly intelligent headquarters of attack on the Government, I went down to Birmingham, where there is a large quantity and quality of intelligence indeed. I called together a meeting of representatives of the Property Owners' Association, the Tenants' Association, and the Ratepayers' Association, and after a conference with the representatives of these bodies, and hearing what they had to say, and after confining it to various points of discontent which became manifest amongst them, I must say, after having heard the statement of my right hon. Friend to-day, that he has practically met every point that was raised by that representative gathering in Birmingham. When these taxation proposals are being discussed in this House, hon. Members opposite immediately object to all kinds of taxation unless it rests upon the shoulders of what they regard as the rich. When they ask for reform proposals of all sorts for improving the conditions of the mass of the people, whom they allege they represent, they have no consideration at all for the means by which the reforms are to be carried out, and I think it would be very useful in taxation discussions if the point of view were always maintained of referring taxation to the purpose for which taxation is meant.

I would like to draw the attention of the Financial Secretary to the Treasury to one point which I do not think has been brought before him up to the present time, and that is with regard to property owned by lessors of factories. Take the owner of a factory who lets it to a lessee, the taxes being ultimately paid by the lessor. In that case he would be entitled to deduct his sixth, so that, if it were £120, he would deduct £20, but because the tenant puts in machinery, it enhances the value by a corresponding £20, we will say, and the assessable value of the factory remains as it was before. I would like to ask my right hon. Friend whether any concession can be made to an owner of property of that character. I think it would meet a legitimate grievance on the part of a large number of lessors of property in congested industrial communities. There have been a certain number of complaints of the irregular way in which valuations have been made, and perhaps my right hon. Friend, in the instructions he is about to issue to the inspectors of taxes, will call attention to the desirability of introducing systematic methods into the making of these valuations. Further, it has been alleged, rightly or wrongly, that objections are discouraged. I have no direct evidence of any case of that kind, but I think it would be appreciated if the suggestion were made that where legitimate grievances were present to the minds of people in consequence of their assessment, they should not be discouraged in making objections.

I am confident, as has been stated by the hon. Member for Thirsk and Malton (Mr. Turton), that much of the difficulty in dealing with these cases can be settled between the inspectors of taxes and the people concerned, and that we are not going to have this immense flow of appeals coming up to the general commissioners at all. The inspectors of taxes are, on the whole, human beings, with a great deal of feeling for the people with whom they are in daily contact and whose taxes they collect. The modern tax gatherer in our community is quite as considerate a person as any other member of the community, and I am confident that the relations which have been so happily maintained between the inspectors of taxes and the tax-paying community up to the present will continue to operate in the future. I am confident that my right hon. Friend will be doing a service if he will suggest every kind of inducement and conciliation and concession on the part of the inspectors of taxes to soften the grievances, or alleged grievances, of those who are assessed, and that it will do a great deal to obviate appeals and prevent small people going into Court and thus incurring great expense. I am sure the Committee will entirely approve of the proposals of the Financial Secretary to the Treasury, and that the country outside will deeply appreciate the way in which the Government have dealt with this complex problem.

With regard to the point raised by my hon. Friend the Member for the Moseley Division of Birmingham (Mr. Hannon), as regards the suggestion that inspectors of taxes should be asked to deal fairly with people, here is an extract from the notice I am sending out, and this is in the nature of an order from the Board of Inland Revenue to the inspectors:

"Inspectors of taxes have been instructed to give taxpayers all possible help and information, and will be glad to examine all complaints and to endeavour to reach a fair agreement, or to remove any doubts or misunderstandings from the taxpayer's mind."

The hon. Member for Derby (Mr. C. Roberts) raised the question of the removal of a country cottage on to a new site; in fact, the rebuilding of a cottage. A new cottage will have the same concession for repairs under my new proposals, but if I were to give the whole coat of altering a cottage and rebuilding it, obviously there would be no tax payable. Then he asked whether I would exempt small houses from paying Income Tax altogether, but I think he will see that there are many cases of companies which own a thousand or more small houses and which make their living farming them out. If they were let off Income Tax altogether, it would destroy the income of the tax. The hon. Member for Spelthorne (Sir P. Pilditch) and the hon. and learned Member for Ealing (Sir H. Nield) dealt with the onus of proof. The hon. Member for Thirsk and Malton (Mr. Turton) made it clear in his speech, but perhaps I had better re-enunciate it. The Government have no power, without another special Act of Parliament, on any question in regard to onus of proof, to compel the Commissioners to go one way or the other, but, after consultation with a commissioner of taxes in this House, who was good enough to see me on this very point, I have arrived at the following words, which will be included in the instructions to be sent out:

"It will be the duty of the Commissioners to take evidence of both sides as to value, in order that they may arrive at a fair and impartial decision, and their decision on questions of value is final and binding, both upon the Crown and the taxpayer."

When we have bodies of Commissioners all over the country, with local knowledge and with that announcement on the part of the Government, I think we may rely on their honour and honesty to arrive at a fair conclusion after hearing the evidence of both sides as to the value of a house.

Do I understand that if an inspector brings forward no evidence of value, the assessment will stand as it is at present?

No, I think my hon. Friend, who is a lawyer, will see that that is not what I said. If an appellant were to bring forward evidence of value, such as an agreement in regard to rent, and the inspector of taxes were to bring forward no evidence at all, I am quite sure the Commissioners would say: "The only evidence we have is that in regard to the rental, and we shall give a decision upon that." But if, on the other hand, the inspector were to bring evidence that such an agreement had been produced by fraud, or something of that kind, the Commissioners would be forced to act accordingly.

I hope the hon. Member for Central Edinburgh (Mr. W. Graham) will not ask me to go fully into all the questions he raised in regard to the Income Tax Report. They are very deep questions, and I have not had time to devote myself to studying that very voluminous Report. The hon. Member is fully seized of it, and I am not, but it will be my duty in the next few months to read it. I hope to read the whole of it, and to get to know it as well as the hon. Member does himself, and then I shall be better able to meet him on equal terms. In regard to his proposal about the annual value and the hardship on Scotland, I think he must put up with it. If he is charged a little more, he has the inestimable advantage of an annual valuation. We do not want it here, and he wants it there.

I have been asked a question regarding reassessment. Of course it is only the owner who has the right of appeal during the term of five years. The hon. Member for Keighley (Mr. Lees-Smith) made certain observations on the proposal, as did also the hon. Member for Harrow (Mr. Mosley). These hon. Members should really—they are, I understand, in the same party—agree beforehand to ride the same horse. It would be much easier for us if they would do that. As they have not done that, all I can say is that their arguments mutually destroy each other, and I will leave it at that. I think, however, I ought to say one word in regard to the statement of the hon. Member for Harrow as to the cost of the appeal. I do not know what authority he had for telling the house that in the case of a man going through with his appeal to the Commissioners and only succeeding as to one-half of his assessment, he is condemned in the costs of the appeal. Supposing a man is assessed at £100, and he asks to be assessed at £60, and finally is assessed at £80 as a fair sum. That taxpayer is not condemned in costs. The hon. Gentleman will allow me to say that there is not a shadow of foundation for that statement. Men who are taxpayers, and who have been assessed too highly, go before the Commissioners with their agreement in their hand and the appeal is treated as between man and man. There is no question at all of an appeal being dismissed with Costs, or anything of the kind. I hope I have answered all the questions put to me, and, under the circumstances, I hope the Committee will be prepared to pass the proposed new Clause.

Has the right hon. Gentleman anything to say about the proposal that there should be an extended right of appeal to tenants, as well as to owners?

I agree. I thought the Amendment of the hon. and gallant Member for Finchley (Colonel Newman) would have been an answer to that point. I have agreed to accept it.

Question, "That the Clause be read a Second time," put, and agreed to.

Clause read a Second time, and added to the Bill.

NEW CLAUSE.—(Right of appeal in respect of Schedule A values and assessments for 1923–24.)

(1) Without prejudice to any right of appeal under the Income Tax Acts or the Acts relating to Inhabited House Duty, any person aggrieved by the amount of the annual value of any property assessed under Section thirty-two of the Finance Act, 1922, shall be entitled to appeal to the General Commissioners against the assessment of annual value if he gives to the surveyor, not later than the thirty-first day of August, nineteen hundred and twenty-three, notice in writing of his intention to appeal.

(2) Any owner or other person in receipt of the rent of any property, although not the occupier thereof, who is aggrieved by the amount of the annual value of the property assessed under Section thirty-two of the Finance Act, 1922, shall be entitled, if a notification of the value so assessed was not delivered to him, to appeal against an assessment to Income Tax under Schedule A or to Inhabited House Duty in respect of that property for the year 1923–24, if he gives to the surveyor not later than the fifth day of April, nineteen hundred and twenty-five, notice in writing of his intention to appeal, and on any such appeal the commissioners may confirm or amend the assessment as the case may require, and the provisions of the Income Tax Acts relating to appeals against assessments to Income Tax under Schedule A, and the relevant provisions of the Acts relating to Inhabited House Duty shall, with any necessary modifications, apply respectively to appeals under this Sub-section:

Provided that nothing in this Sub-section shall affect the collection or recovery of any tax or duty assessed and charged, and where any assessment is reduced on an appeal under this Sub-section any tax or duty overpaid shall be repaid.—[ Sir W. Joynson-Hicks. ]

Brought up, and read the First and Second time.

I beg to move, in Sub-section (1), after the word "the" ["gives to the surveyor"], to insert the words "assessor or."

Under Section 75 of the Income Tax Act, 1918, it is laid down that the Treasury may appoint inspectors and surveyors, and that all such inspectors and surveyors, and all other officers or persons employed in the execution of the Act should follow the orders and directions of the commissioners of Inland Revenue. In Section 76 it is laid down that the General Commissioners may appoint assessors, who have to be chosen from the inhabitants of the parish. Of recent years the inspectors and surveyors have assumed a great many powers which were not theirs under the law, and some of the duties they have taken over are the duties of the assessor. The present position seems to be a very curious one, but there it is. In four years out of five the assessor does not exist; he is taken over, so to speak, by the inspector or surveyor who is a whole-time official directly responsible to the Board of Inland Revenue, while in the fifth year the assessor comes into play. In the all-important year the assessor is really the all-important man. His duties for the five years, the four unimportant years and the one important year, have been assumed by the inspector of taxes. I have put down this Amendment to meet that case. I suggest that the reassessment and the revaluation as referred to in the Income Tax Act ought to be more the work of the assessor than that of the surveyor.

I trust my hon. and gallant Friend will not press this Amendment. I do not think it is important. At the present time matters of appeal have to come before the inspector of taxes, who is the person representing the Crown. The surveyor of taxes and the assessor of taxes are the servants of the commissioners, who are the judges. There is no need to give notice of appeal to the judges. It is impossible to do so. As soon as the inspector gets notice of an appeal, then the issue is in existence between the taxpayer and the Crown, and it is referred to the commissioners for decision, and the assessor of taxes is their servant and acts on their behalf as clerk of the court. Furthermore, my hon. and gallant Friend has put in an alternative, that notice of appeal should be given either to the assessor or the inspector. If this were followed out you would have terrible confusion. Some would give notice to one official, and some to the other, and neither would know who had entered the appeals. The present condition of affairs has lasted a good many years, and there seems no reason why it should be changed.

Why, then, is it laid down in the Income Tax Act that it is the assessors who make the assessment?

They are the judges. The assessors are the servants of the commissioners, who are the final judges. You must not give notice of appeal to a judge. He is the man who has to decide. It is the inspector who should have the notice.

Amendment, by leave, withdrawn.

I beg to move, at the end of Sub-section (1), to add the words

"but where an assessment has not been made on or received by the person to be assessed before the first day of July, nine- teen hundred and twenty-three, notice in writing of intention to appeal may be given by such person not later than the thirtieth day of September, nineteen hundred and twenty-three."

I have had considerable correspondence from all parts of the country. It would appear that for some reason or another the notices of assessment are being held up and not served. Possibly the inspectors of taxes under the Board of Inland Revenue are conscious that some changes may be made and are not pressing on with the serving out of the notices. This may mean that many people will find themselves, perhaps about the middle of July, receiving their notices of assessment, and that leaves them a very short time to lodge notice of appeal.

I think my previous speech possibly covers this point. I do not wish to go over the same ground again. I accept the principle of this Amendment, including the dates, but I should like to consider the verbiage between now and Report stage, and also the point raised by the hon. Member for Harrow (Mr. Mosley).

Amendment, by leave, withdrawn.

Motion made, and Question proposed, "That the Clause be added to the Bill."

I understand that the right hon. Gentleman made a statement, while I was out a little while ago, as to what I said. I suggested that in the event of an appeal not being entirely successful, the cost of the appeal would fall upon the appellant. I understand that has been disputed. Well, I have turned up Section 138 of the Income Tax Act, 1918, and I read there:

"(3) The costs and charges of any such valuation shall abide the final determination of the commissioners and if the value so found exceeds the value alleged by the appellant the commissioners may order him to pay the costs and charges of the valuation."

That is precisely my contention. Take a case by way of example. A man is assessed at £100. He alleges that he should be assessed at £60. The final outcome of the inquiry held is that he is assessed at £80. The commissioners then, I contend, may order that the whole of the cost of that valuation should fall upon the appellant. Might I ask the right hon. Gentleman if that is a correct statement?

If the hon. Gentleman were as familiar with the practice as he is with the words of the Act, he would know that Section 138 is practically obsolete. The procedure of that Section is that an umpire shall be appointed to decide the question, and, if that procedure be adopted, there are certain powers given to the Commissioners to award costs in such event, but that procedure, I may say, is practically never adopted in ordinary circumstances. The assessment is made, and what my right hon. Friend the Financial Secretary has said as to the method of discussing the question of value with the commissioners as man to man is correct.

Question put, and agreed to.

Clause added to the Bill.

NEW CLAUSE.—(Amendment of Acts relating to illicit distillation in Northern Ireland.)

(1) Any person convicted before a court of summary jurisdiction in Northern Ireland of an offence against Sections sixteen, seventeen, nineteen, twenty-two, twenty-three, twenty-four, twenty-five, twenty-seven, or twenty-eight of the Illicit Distillation (Ireland) Act, 1831, shall be liable to a penalty not exceeding five hundred pounds, or to imprisonment for a term not exceeding twelve months or to both such penalty and imprisonment.

(2) If any officer of Customs and Excise, or other officer having the powers of an officer of Customs and Excise in relation to offences under the Illicit Distillation (Ireland) Act, 1831, has reasonable grounds to believe that any spirit illicitly distilled, or any utensil, vessel, or material used or intended to be used for the illicit distillation of spirits is in or upon any land or other premises, he may enter the premises if need be by force and examine the premises and every part thereof and remove and take away any spirit which he has reasonable grounds to believe to have been illicitly distilled, and any utensil, vessel, or material which he has reasonable ground to believe to have been or to be intended to be used for the illicit distillation of spirits.

(3) Any person who opposes, obstructs, molests, or hinders any officer in the exercise of his powers under this Section shall on summary conviction be liable to a fine not exceeding one hundred pounds, or to imprisonment for a term not exceeding three months, or to both such fine and imprisonment.

(4) For the purpose of any proceedings under the Illicit Distillation (Ireland) Act, 1831, as amended by any other enactment (including this Section) or under any such amending enactment, a court of summary jurisdiction shall be constituted of not less than two resident magistrates, and no justice of the peace not being a resident magistrate shall have jurisdiction to act on the hearing of or in connection with any such proceedings.

(5) In any proceedings under the Illicit Distillation (Ireland) Act, 1831, as amended by any other enactment (including this Section), or under any such amending enactment, any chattel or thing, whether fixed to the freehold or not, found in or upon any land or other premises, shall be deemed to have been in the possession of the occupier of the premises unless he proves that he did not know, and could not by the exercise of reasonable diligence have known, that the chattel or thing was in or upon the premises.

(6) References in the Spirits (Ireland) Act, 1854, the Illicit Distillation (Ireland) Act, 1857, and the Revenue (No. 2) Act, 1861, to any officer of any rank of the Royal Irish Constabulary shall be construed as references to an officer of corresponding rank of the Royal Ulster Constabulary, and the Commissioners of Customs and Excise may, after consultation with the Minister of Home Affairs for Northern Ireland, direct that any powers or duties which may be exercised or performed by an officer of the Royal Irish Constabulary under the Illicit Distillation (Ireland) Act, 1831, or any of the enactments aforesaid other than Sections nine and ten of the Spirits (Ireland) Act, 1854, may be exercised or performed by a special constable belonging to any class of special constabulary specified in the direction.—[ The Solicitor-General. ]

Brought up, and read the First time.

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

This Clause has been rendered necessary in consequence of the passing of the Government of Ireland Act, 1920. The illicit distillation of spirits in Ireland is a serious matter, not only in regard to intemperance, but also because it makes serious inroads upon the revenue. Hon. Members may recollect that the Government of Northern Ireland have recently passed an Act amending the licensing law, and but for the fact that the distillation of spirits comes under the reserved matters in the Government of Ireland Act, 1920, the Parliament of Northern Ireland would have been the body to pass this proposed clause. The Act is 90 years old. It is very complicated, and it has been found in practice not to give all the powers necessary to prevent this illegal practice of distillation of spirits. Hon. Members will have noticed that the new Clause increases the penalty for illicit distillation from £100 or in one case £60 to £500, with or without imprisonment. Certain powers of which are given to Excise officers, and penalties are imposed for interference with the Excise officers in the exercise of their powers of search, and in certain cases the onus of proving that a person was not aware of the presence of these illicit articles on his premises is thrown upon the occupier. Besides this, the Royal Ulster Constabulary are to succeed to the powers formally possessed by the Royal Irish Constabulary. These are all very desirable Amendments, and it is in consequence of the position in which the Government of Northern Ireland find themselves that it is necessary for this Clause to be inserted in the Finance Bill in this Parliament.

Question "That the Clause be read a Second time," put, and agreed to.

Clause read a Second time, and added to the Bill.

With regard to the next new Clause, standing in the name of the hon. Member for Hillsborough (Mr. A. V. Alexander), dealing with the repeal of the Sugar Duties, it has been suggested that a Debate of a general character should take place on this Clause, and, that being so, in the event of subsequent Amendments on this question there may be a Division, but no Debate.

NEW CLAUSE.—(Repeal of Sugar Duties.)

Sections eight and nine of the Finance Act, 1918, as amended by any subsequent enactments, and the Third Schedule to that Act, are hereby repealed.—[ Mr. A. V. Alexander. ]

Brought up, and read the First time.

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

This new Clause will repeal the Sugar Duties, and I move it on three main grounds. In the first place, these duties constitute a tax which is iniquitous in its incidence on working-class consumers; secondly, because these duties constitute in part a tax on raw material, increasing the cost of production, and thus creating unemployment; and thirdly, because these duties are no longer purely for revenue purposes, but are discriminating in their character, and therefore uneconomical and wasteful.

Those are the three main grounds on which I move this Clause. I submitted on the Second Reading of the Bill, and during the Committee stage, that when we were considering relief from taxation, the case of sugar was most important. It is one of the heaviest burdens upon the consumers of this country. It is one of our most important foodstuffs. I do not suppose there is anyone who will deny that, apart from flour and bread itself, there is no food so vitally important for building up the human body as sugar. A tax upon sugar, although perhaps in a lesser degree, is, as a tax on bread would be, a tax upon life and health itself.

With regard to the incidence and the pressure of these duties upon the working classes, I had the privilege of taking a deputation last year to the then Chancellor of the Exchequer, the right hon. Gentleman the Member for the Hillhead Division (Sir R. Horne), and after putting to him the case for the reduction of the duty, I got a rather extraordinary interjection from the right hon. Gentleman to the effect that it was not the working classes of the country so much who were suffering most, and who were most in need of relief at that time, but it was the middle classes who were suffering most from the burden of taxation. Our reply to the right hon. Gentleman then is our case to-day, and it is to the effect that we are putting up the case for weekly wage-earners in this country, who have suffered wage reductions aggregating over £500,000,000 a year, and if you take wage reductions since the last Budget, certainly the reductions amount to £700,000,000 per annum, and yet, in spite of that reduction in the yearly income of the weekly wage-earners, you find that a very small relief has been given by the Chancellor of the Exchequer last year and the present Chancellor of the Exchequer with regard to taxation upon the workers of this country.

Let me remind the Committee that, taking last year's proposals for relief of direct taxation, and this year's proposals as well, you have already a relief to the direct taxpayer of Income Tax of 30 per cent., and in this particular Budget you are having a further proposal for a 50 per cent. reduction in the Corporation Profits Tax. We submit that it is high time that direct relief was given to the working-class consumer in regard to a tax upon sugar. Let me remind the Committee that for war-time purposes the Income Tax was increased by five times and the Sugar Tax was increased by 14 times its pre-War rate. The duty on sugar now stands at 25s. 8d. per cwt. as against 1s. 10d. per cwt. before the War. The pre-War yield of the sugar duties was £3,000,000 a year, and now the Government are taking from those who pay Sugar Duty £40,000,000. In other words, the consumers in regard to taxation upon sugar are practically paying the whole amount that is being put to the Sinking Fund in respect of the reduction of the National Debt.

Let us consider the actual ad valorem bearing of this tax on sugar. Last year when we were pleading for a reduction of this tax of 25s. 8d. we pointed out that it was an ad valorem duty amounting to 130 per cent., and even with the more recent rise in the price of sugar the ad valorem value is equal to 80 per cent. It seems to me iniquitous that the great mass of working class consumers in this country should have to pay in respect of what is a vital food a tax equal to 80 per cent. of its value. When this tax was first introduced it was an emergency measure, and it was never intended as anything else. It was imposed during the Boer War, and after it had been reduced in 1908, it was increased again as an emergency measure during the late War, but it was never intended, when this tax was put upon sugar, even by the Chancellor of the Exchequer, who was wicked enough to put it on, that it should become a firm plank for raising revenue. Nevertheless, a reduction of Income Tax equal to 1s. 6d. in the £ compared with the pre-War rate has been taken off the Income Tax, and nothing is to be taken off the duty on sugar, which is now 14 times more than the pre-War rate.

I suggest that this tax upon sugar directly traverses the elementary principle that a tax should be so contrived as to take out of the pockets of the people as little as possible over its actual yield to the Treasury. In the case of the tax on sugar that principle is contravened. You have a tax of 2¾d. per 1b. on sugar, and to the refiner of sugar that involves an extra expenditure on capital. When there is any change in a tax of this kind the refiner expects to get some extra return for his invested capital. Moreover the people who have to buy the sugar for the manufacture of jam and for other purposes do not pass on to the consumer the bare amount of the tax, and you have to allow for the profit of the merchant and the manufacturer in applying the tax. When we realise what is the actual burden of indirect taxation to-day, and remember that the profit on the actual amount paid in duty is also passed on to the consumer, the Committee will see that it is an uneconomical method of raising revenue when you have to charge it in that way.

Those of us who are connected with the Co-operative Wholesale Society have been taking out the actual figures for the last year or two of what indirect taxation means in regard to the price of goods, and taking indirect taxation, leaving out beer and spirits and wine, the ordinary articles purchased by the working-class householder at the wholesale figure are bearing taxation to the amount of 8s. 5d. in the £, and therefore it is plain that by the time that tax is passed on to the consumer in regard to coffee, cocoa, tea, Sugar and tobacco those articles are going to cost the consumer anything from 9s. 6d. to 10s. in the £ owing to the duty which is added. I want to deal with the point that this taxation is in part a tax upon the raw materials of both the refiner and the manufacturer, and is therefore conducive to unemployment. I will take jam as an example. Jam is a perfectly good and wholesome food, very useful for our young people, in fact, I might remind the Committee that during the War the Government were continually urging the people of this country to develop more and more the consumption of bread and jam in order to curtail the consumption of other foods.

With that purpose the Government at that time urged on those engaged in the manufacture of jam to put up more and more factories, in order to deal with the situation. Those factories were put up. What is the position to-day in the industry? No industry probably with the same amount of capital invested in it and with the same trade turnover has suffered more loss than the jam-making industry during the last few years. At the present time there are thousands of workers in that industry either entirely out of work or on short time. I am sorry the figures of the Ministry of Labour do not give separately statistics relating to jam making, but on the 23rd April figures that were given showed that there were on the unemployed register in trades connected with the manufacture of food and drink no fewer than 44,716 people. Jam making is one of the principal of those manufactures, so that I think it is proved that the reduced demand for jam consequent on the high prices is not only bad for the consumer but conducive to unemployment. As a matter of fact, I do not suppose there is a jam manufacturer with any large turnover who is not now largely overstocked with jam, and, inquiries in the industry indicate that, with regard to the coming season unless there is going to be a reduction in the Sugar Duty, making it possible to manufacture jam much more cheaply, there will be very little new season's jam, if any, made by the big manufacturers. It will not only be a question of creating unemployment, or of short time in the factories, but it will be a very serious thing for the fruit-growing industry.

My third point is that this tax has always been held up to us as if it were levied for revenue purposes only, but as a matter of fact it is now both discriminating and protectionist in its character. I am going later on to deal with the point made by the Chancellor of the Exchequer on the Second Reading of the Budget as to the effect of a reduction of the Sugar Duty. I can only say that no one of any real consequence or importance in the sugar trade of this country would ever accept such information as that given by the Chancellor of the Exchequer; indeed, I wonder whether the Treasury or the Chancellor of the Exchequer got this suggestion with regard to the possible effect of a reduction of the tax from those interested in the British sugar industry who desire to secure protection for their own particular part of the industry. What is actually the position in this matter? Last year the Finance Act entirely repealed the Excise Duties on sugar, and the price of sugar produced in this country, relieved of the Excise Duty, was exactly the same as the price to the consumer of the taxable article imported from abroad. The repeal last year of the Excise Duty on British sugar, in fact, made a present out of the taxpayers' pockets to the British productive industry of 25s. 8d. per cwt. on all sugars produced without any corresponding advantage in prices to the consumer. In the case of one of the two big factories—Kelham—Cantley is the name of the other factory—the result has been to make a present of certainly not less than £115,000 to that factory, the majority of the capital in which is held not by British but by Dutch capitalists, and I assume that the Dutch proportion of the capital received this last financial year from the British taxpayers' pocket, without advantage to the consumer, a sum of not less than £100,000.

But it has kept a large acreage of agricultural land under production, and has provided employment for a large number of men, especially in the City of Norwich. These men would have been out of work had it not been for that.

And the benefit was not confined to Norfolk. It was extended to other counties.

I am glad to see exactly where hon. Members stand. It is clear to anyone who studies the question that, while this Preference may have created some local employment in a particular branch of the sugar industry, it has created more unemployment in other directions. I think it was John Stuart Mill who, in his "Political Economy," talks of that matter and says that the growing of an article for home consumption is a waste of labour and a waste of capital if you are subsidising it without giving a corresponding advantage to the consumer in prices. No article would continue to be permanently imported into this country from abroad unless it was made more cheaply than it can be produced by labour and capital in this country without a subsidy. If you produce it more cheaply with the aid of a subsidy, you are employing labour and capital in this country for a purpose which could be better used in other directions, and therefore it is wasteful. This House has been committed by past Governments to still more expenditure of this type. I understand the Government were committed by the right hon. Member for Hillhead (Sir R. Horne), or if not by him by his predecessor to a guaranteed payment of 5 per cent. on the share capital in connection with the factories, and this guarantee is I believe to continue until 1930. If my memory serves me aright, the loss on the Kelham factory for the year 1921–22 approached £70,000, and that sum the British taxpayer has had to make good. We are paying out to the British beet sugar industry this large sum without any advantage at all to the consumer, and therefore it will be seen how unfair it is, and how true it is that this tax is no longer imposed for revenue purposes but is Protectionist in its character

Just a word or two with regard to the Colonial position. We have always been worried by the West Indian growers with regard to the sugar position there. There axe few here who will remember, perhaps, that it was a Conservative Government that gave the West Indian sugar growers a present of a quarter of a million as a grant in 1902. Ever since the West Indian growers have been worrying Government after Government fox special treatment in regard to their position. They have had a preference of 4s. 3½d. per cwt. on all sugar imported into this country since 1919, yet last year they were worrying the House to have that preference increased to 8s. Again, there has been no corresponding reduction in price to the consumer in this country. While we have granted relief to the Colonial sugar grower, the money coming out of the British taxpayers' pocket, there has been no real advantage to the community. It is true that this preference was granted on the ground that it was the only means of assisting the sugar industry in the West Indies to maintain white supremacy there, but I am more concerned at the present moment to see justice done to the British taxpayer and consumer in this matter than with any bolstering up of an industry which should be able to stand on its own feet. The Chancellor of the Exchequer, in an answer, recently gave some figures as to the amount of sugar imported from the West Indies, and it will be found that at the rate of preference of 4s. 3½d. per cwt. on imports into this country last year the taxpayers lost £1,750,000.

May I add a word with regard to the Chancellor of the Exchequer's contention in the Budget Debate that any substantial reduction of the Sugar Duty would not ultimately benefit the consumer? I think the right hon. Gentleman cannot have consulted any of those who really know the facts about the sugar trade before he made such an extraordinary statement. The argument that the stimulus to the consumption of sugar caused by a reduction of duty would keep the prices up is surely a very weak argument indeed: otherwise, the converse would hold and it would be equally the case that an increase of duty with a corresponding decrease of consumption would cheapen the article. The right hon. Gentleman's contention has not been borne out by the effect on the market since he made his statement. I have been at some pains to pick out some figures on this matter, and I find that on 16th April shipments of American sugar ranged from 35s. 3d. prompt to 36s. per cwt. for May shipment. After the Chancellor of the Exchequer's statement that he was not going to reduce the tax on sugar, one might have expected some reduction in prices, but immediately after the Budget statement the figures went up to 37s. 9d. and 38s. respectively. On 16th May the price of granulated sugar was 38s. 9d. Since then the price has actually dropped until on 15th June it was 33s. 6d., but anyone connected with the trade knows perfectly well that the rise in value had nothing to do with the question of the tax in this country, and no one is going to accept the Chancellor's statement except those who may not have studied the position of the market as carefully as they might do. I move the repeal of these duties because they are an unwarrantable burden on a great body of working-class consumers in this country who have not been given relief in taxation equivalent to that given to the direct taxpayer. I oppose them because they are a tax on raw material, are conducive to unemployment, are increasingly protectionist and preferential in character, and are, therefore, a wasteful method of trading.

7.0 P.M.

I should like first to congratulate my hon. Friend on his admirable presentation of an overwhelming case. If the Committee were free to repeal this duty, having regard to the financial position of the country, I would strongly support him in the Motion he has made. The Chancellor of the Exchequer has admitted that he must give some remission to indirect taxation, and has had to consider the competing claims of different articles. The Sugar Duty now produces something like £40,000,000.

The Sugar Duty has every disadvantage that an indirect duty can possibly present, for it hits at one and the same time an article of food which is really a necessity of life and a raw material not only of one but of a number of industries. I assert that among all possible expedients, leaving out of account the controversy of Free Trade or Protection, and taking an effective balance of the ratio of direct and indirect taxation, you could not select anything worse than the Sugar Duty. I would like to remind the Committee of the history of the Sugar Duty. It was imposed in the year 1901, at the time of the Boer War when the Committee will remember the necessity of increasing taxation to meet expenditure resulting from the war, by Sir Michael Hicks-Beach, who was then Chancellor of the Exchequer. It was introduced by him before the fiscal controversy arose, with the double object, firstly, to provide a new source of revenue for meeting war expenditure, and, in the next place, to use a phrase then current in the political vocabulary, "to broaden the basis of taxation." The duty as imposed by him in 1901 was 4s. 2d. per cwt. Although we got rid of the Corn Tax, the Coal Tax, and other impositions which were contemporaneous with it, it continued until 1908 when I was Chancellor of the Exchequer. I had just resigned that office, but I introduced the Budget of 1908, and I was responsible for it. I see that in the speech introducing the Budget of 1908 I said, with general assent, for my statement was not controverted in any quarter of the House:

"The truth is that the Sugar Duty is one of the most objectionable of all our indirect taxes because it is at one and the same time a tax on food and raw material."

I added what I think was a very just remark:

"Unfortunately, it is very productive. Last year"—

the year 1907–8—

"it brought in £6,700,000."

In the Budget of 1908 we were engaged in very serious and costly experiments of social reform, particularly in the establishment of old age pensions. Therefore, it was with great reluctance that I, as Chancellor of the Exchequer, sanctioned any large reduction in a productive tax. I came to the conclusion, however, that this tax was so indefensible in principle and so injurious to industry that I must ask the House, even under those conditions, to reduce the duty from 4s. 2d. to 1s. 10d., and the House of Commons agreed to do so. By that reduction I sacrificed in revenue no less than £3,400,000 which I very much needed.

I do not know what my right hon. Friend (Mr. A. Chamberlain) means by that interjection. I was introducing old age pensions. I am not complaining, but the House of Commons, in the course of the discussion of our scheme for old age pensions, increased the cost to the Exchequer of that great social reform directly and indirectly by a very large and to me unanticipated amount. I am not at all sure that my right hon. Friend was not a party— particeps criminis —to some of that increase. In any case the yield of the duty was reduced by one-half, as I think wisely, and it remained at that comparatively modest figure of 1s. 10d. until the War. Of course, when war came we had to look in every direction for new sources of revenue. I need not give the successive stages, but in the end, when the late Prime Minister was Chancellor of the Exchequer, in 1918, it was raised to 25s. 8d. which is, I believe, the present figure. In other words it was multiplied by nearly fourteen times. Roughly speaking, the tax when the War broke out was one-fourteenth of what it was in 1908 and what it is to-day. That is an enormous addition to the burdens on the consumer, for every household consumes sugar, and it is an equally serious burden on the manufacturer who produces jam and all those various commodities of which sugar is an essential raw material. I do not hesitate to say that there is no indirect tax which, if the Chancellor of the Exchequer has at his disposal a surplus, presents more urgent claims to his attention than this tax on sugar, both from the viciousness of the tax itself and from the clear temptation which it offers to Chancellors of the Exchequer who are not wedded to economy and reduction of Debt as the present Chancellor of the Exchequer is, to treat it as an elastic and constantly increasing source of revenue. As there is a case for further reduction of taxation, some of my hon. Friends on this side—I am not sure whether I can speak for the Labour party, I think not—think that there has been too much provision made for the reduction of Debt and inadequate provision for the reduction of taxation. That is the opinion of a very great authority, if I make no mistake, the right hon. Member for Swansea (Sir A. Mond). I do not myself share that view. I think, as I have said on the Budget and eleswhere, that, on the whole, the Chancellor was wise in making the very large provision he has done for the reduction of Debt. I do not complain of it being inadequate, although, as I said the other day, I should very much deprecate the notion that larger and more adequate provision should not be made in the immediate future. I do not want to enter into that controversy at all, though I agree it is a serious matter. Hon. Members who think the provisions for Debt is excessive will agree, however, that this is the duty on which the first attack ought to be made.

What is the argument the other way? The hon. Gentleman who has just sat down, obviously with an intimate knowledge of the case, has dealt with all the technical points, but so far as I could make out, listening to the speech of the Chancellor of the Exchequer, the present Prime Minister, he admitted the case against the duty. He did not attempt to defend it. His view was that in the present somewhat artificial conditions of the sugar market it would be better to postpone the reduction—he almost promised he would tackle it from that point of view next year—for another 12 months. I have looked into the matter since his speech was made, and I confess that I am not in the least convinced by the facts he stated and the evidence he brought forward. When the more ardent and drastic spirits who sit on these benches demand the abolition of the tax I know the retort is, "What are you going to put in the place of the sacrifice of £40,000,000 of revenue?" I am not advocating that, nor should I vote for the Motion which has just been moved by the hon. Gentleman. What I am advocating is that the case that has been made could easily be met by the Exchequer, that it would be to the benefit of the manufacturer, and that there could be a substantial reduction in the amount of the duty. I agree with what the hon. Gentleman said just now, that the argument that a reduction in the duty increases consumption and therefore profits the ring or combination of sugar producers is an unfounded argument. Let us look for one moment at the facts. The annual quantity of sugar in the world's market is something like 18,000,000 tons, while in Great Britain our annual consumption is, I believe, 1,500,000.

One-and-a-half million tons out of a world production of eighteen million tons. Is it really going to be seriously contended that a substantial diminution of the duty would have such a revolutionary effect on the world situation, as—for this is what is suggested—to increase the power of the monopoly and bring the whole of the reduction into the pockets of those who control the market? I do not think so for a moment. It is important to observe, and I do not think the Chancellor of the Exchequer favoured us with any information on the point, that we are not in this country, or, as I think he said, in any European market, at the mercy of speculators in New York. The area of supply of sugar is very large. It comes, amongst other countries, from Java, Brazil, Peru, and, of course, from our own West Indian Colonies, and I believe that in Africa, in East Africa particularly, as the resources of that country are developed, we shall find there again, as we shall in our Colonies also, an enlarged area of sugar supply. That being the actual geographical situation, it seems to me to be—I do not like to use abusive language, so I will call it a phantasy to suggest that the speculators in New York, who have not got complete control over the world's supplies, should be able to confiscate and appropriate to themselves the fruits of any reduction of duty here. That, really, is the only argument which was used by the Chancellor of the Exchequer, and if it be not well founded, or if the inference which he drew from the facts which he stated be not justified, there is no case whatever, either in logic or in expediency, against giving some such reduction as he conceives himself able to give, out of the Revenue of the current year, on this duty, which has the first claim. Although I cannot support the proposal totally to repeal the Duty, I do again strongly press upon the Chancellor of the Exchequer, through his representative who is now here, the necessity for giving consideration to this proposal, because I am satisfied that there is no form of relief from indirect taxation which will produce such large and beneficial results, both to industry and to consumers in this country. Perhaps, therefore, the right hon. Gentleman will be disposed to give us some further reason why the proposal of the Budget in this respect should not be, as I think it justly might be, substantially amended.

I am exceedingly sorry that I am not able at this moment to comply with the request of the right hon. Gentleman the Member for Paisley (Mr. Asquith) to reduce the Sugar Duty, mainly for the reasons which were given by the Chancellor of the Exchequer in his speech introducing the Budget. The right hon. Gentleman the Member for Paisley has complained, not without reason, of the high taxation in the case of sugar, but I think it is only fair to explain to the Committee that the rise in that taxation has been a gradual one during the whole period of the War.

I am not going to be drawn into a discussion, nor do I think that that was the right hon. Gentleman's desire, as between direct and indirect taxation, but the right hon. Gentleman did not tell us—I am sure it was because it did not cross his mind—that the rise in the duty was not due to the present Government entirely. The right hon. Gentleman is pressing us to reduce the tax, and complaining what a high tax it is both upon the health of the poor and upon the industry of the country, but it was his Government which raised the tax to 1d. per lb. in 1915, and it was his Government which, in April, 1916, raised it to 1½d. I am not complaining, but the tax to-day is 2¾d. per lb., so that more than half of the present sugar taxation, of which the right hon. Gentleman complains so bitterly, was put on by the Government of which he was Prime Minister. I think I am entitled to put those facts before the Committee.

I want the Committee to realise that, in spite of the very high taxation upon sugar at the present time, the consumption of sugar in this country is again going up. The agitation for the reduction in the Sugar Duty is carried on on the ground that the people of this country cannot get the sugar which is necessary and beneficial to them, but that is not quite correct. In 1912 the consumption of sugar per head was 79 lbs. throughout the country. It reached its highest point in 1913, when it was 83 lbs., and in 1920 it fell, after the high taxation had been imposed, to 51.7 lbs. per head. It is now gradually going up, in spite of the taxation. In 1921 it was 64.8 pounds, and last year it was 74·6 pounds. Really, therefore, from the point of view of the health of the people, which, I think, was referred to by the hon. Member who moved the total repeal of the duty, it is quite clear that the consumption of sugar in this country to-day is approaching its highest pre-War point, which it reached in 1913. The right hon. Gentleman told us, of course quite truly, that the total world production of sugar is about 18,000,000 tons per annum, and he rather poured scorn upon the idea that any increase in consumption here, owing to a reduction in the tax, would have any effect upon so enormous a production and consumption as that. He mentioned that the consumption in this country is only 1,500,000 tons. May I call the attention of the Committee to an authority which I take to be quite as great as that of the right hon. Gentleman, namely, the American Department of Commerce? The American Department quite recently summarised the position, and I would ask the Committee to give special attention to the view of the American Department of Commerce as to the effect of any increase in consumption in 1922/23.

The statement of the American Department of Commerce is that 1921/22 the world's sugar consumption was 500,000 tons greater than the production, and that the prospects were that it would be 700,000 tons greater in 1922–23. If, the Department stated, those prospects materialised, the heavy accumulated stocks which were in existence at the end of the 1920–21 season—and which were put by the Department at 1,700,000 tons—would give place, by the end of 1922–23, to a carry-over below the p re-War normal figure, which was then put at 750,000 tons. That is from the United States Commerce Report of the 12th February, 1923. If that be correct, and no one in the world is in a better position to judge than this Department, the statement of the United States Sugar Department means that we are getting to the point when the carryover—and, of course, every hon. Member knows that in all these cases there is a large carry-over from year to year of the previous year's crop—is on the point of being exhausted, and, unless there is an enormous increase in the world crop, any slight increase in consumption, either here or elsewhere, will throw the sugar market into a very serious condition and raise prices.

The hon. and gallant Member is always eager to speak, even before his time. I am going to give the figures, which show how steadily and continuously the price of sugar has risen. In January, 1922, it was 10s. 6d. per cwt., and it rose practically every month last year, until in December it was 17s. 9d. per cwt. In January of this year it was 17s. 6d., In February 18s. 6d., in March 27s. On 27th April it was 33s. 6d., and 25th May 31s. 9d. I am very glad to say that to-day it is a little less, namely, 29s., but it will be seen that there has been an enormous and steady rise during the last 18 months in the price of Cuban sugar. I say quite frankly that it is inadvisable, if we can help it, to do anything, for the moment at all events, which will increase the consumption of sugar in this or any other country, because, with a rising market like that, the price here will tend to be raised to a far greater extent even than it has been during the last three months.

I think they are, but the prices of West Indian sugar are very nearly parallel with them.

Yes, but if we could buy it here we should do so, because we want to buy sugar where we can, and as cheaply as we can, and if we could get any sugar more cheaply, we should get it. The Motion before the Committee at the present moment is not for a reduction in the duty, but for its complete repeal, and the right hon. Gentleman the Member for Paisley (Mr. Asquith) said quite frankly that he could not vote for that. It means £38,000,000 off taxation during the current year, and it means that we should either have to impose an enormous amount of fresh taxation of some kind or another, or we should have to reduce our reduction of debt; and, while I am not, in this Debate, going over the position with regard to that, which was discussed here again and again last week, I, for one, am entirely convinced that, whatever sacrifice we make in the way of taxation, whether on sugar, beer, Income Tax, or whatever it may be, it is amply repaid by the provision we are making for the reduction of our Debt, and the improvement of our financial position throughout the world.

There is only one more word that I should like to quote, because it is from an authority which I think the right hon. Gentleman will be inclined to support, namely, the "Economist" newspaper, with regard to the position which we take up, that a reduction of taxation on sugar would not find its way into the pockets of our people after the first month, but would really go into the pockets of the producers, while the price of sugar would rise even more than it has risen, by reason of the increased consumption. I think the figures I have given have made it perfectly clear that the consumption would increase, and the right hon. Gentleman him- self admits that his object in suggesting a reduction of the Sugar Duty is to get an increased consumption in this country, which would mean an increase of consumption in the world's markets, and an increase of price in the world's markets.

Does the right hon. Baronet suggest that these increases in the price of sugar have originated solely on account of increased consumption?

The hon. Gentleman says that it is simply due to the operation of a ring. Admitting for the moment that it is the result of a ring, is a reduction in the price of sugar by 1d. per lb. here, assuming that we can make it, going to break the ring? It is clear that, on the contrary, it will assist the ring by increasing the consumption. The contention of the right hon. Gentleman the Member for Paisley is that a reduction of the duty would increase consumption; otherwise there would be no reason for reducing the tax at all. Consumption would be increased, and it would simply and solely, if I may say so with the greatest deference to the authority of the hon. Gentleman opposite, play into the hands of the ring. Let me, then, conclude with a quotation from the "Economist," which I think really puts the matter in a nutshell. That journal says:

It takes the view that a reduction in duty would involve an increased consumption, and give another weapon to the American speculators. I am prepared to follow in this matter the "Economist" rather than the hon. Gentleman. I am sure the Committee would like to reduce the duty, but they would also agree with what the Chancellor of the Exchequer said on the Budget—

It never was disputed on this side of the House that a reduction in taxation at the time of the introduction of the Budget might temporarily raise the price of sugar, but at the very moment the Chancellor of the Exchequer was making his speech, forward supplies were being bought at very much reduced prices. We contend that the Estimates which are given from American sources are not to be entirely depended upon. A very excellent case has already been made out so far as the home consumer is concerned. I should like to bring before the Committee another phase of how the present high tax on sugar presses so heavily, not only upon the manufacturer, but on a special branch of the manufacturing trade, and that is from the export standpoint. It seems to be entirely overlooked that, owing to circumstances over which the British manufacturer has no control at all, we lost our export trade in confectionery, which was the largest in the world, and that has created a very serious difficulty for the manufacturer. Australia is now not a purchaser, but a sugar producer, and is capturing what have been the markets of the British manufacturer for very many years. You have exactly the same thing in South Africa and Canada. Japan is now a large manfacturing and exporting country, and instead of taking steps, as the Government ought to have done, to assist the industry to regain the markets which have been lost, we are crippling it still further by insisting upon high taxation, which makes the British manufacturer utterly unable to compete with these new competing manufacturers. Australia not only allows a draw-back on all that is exported, but goes further and grants a bonus on all exports. In other words, Australia is now dumping. The British manufacturers are not quite prepared to accept fully the statements that come from America. They look upon them as coming from a rather tainted source. We have other estimates of the world supplies given by one of the best authorities in the country. For this year it is 18,208,000 tons. For 1922 it was only 17,686,000 tons, and in 1921, 16,767,000 tons. In 1920 we saw the price of sugar soar in one year to 160s. per cwt. and in the same year drop to 45s. Further, while we admit that a reduction of taxation would have raised the price temporarily, is it not manifestly unfair that the nation should be taxed for the whole year while forward supplies show more than the reduction we are asking for from the Government? As in everything else, we have always contended that Protection creates trusts and rings, and the ring is very largely the result of the way in which sugar has been shackled from the manufacturers' standpoint for the last few years. Take the case of sugar production. When Mr. Chamberlain created the West Indies Sugar Commission in 1898 the cost of production was 4s. 8d. per cwt. During the War, owing to the increased cost of labour, it went up to, I think, 14s. a cwt. It is not to be wondered at that there should be an abnormal demand for sugar in America owing to prohibition, but during the past year the price of production in the West Indies has increased to 28s. per cwt., or more than six times the pre-War cost.

Possibly we have in this country the finest factories in the world for the manufacture of sugar goods. If you so raise the cost as to reduce the demand, you will injure these factories and disable them from regaining their export trade, and you will have thousands of people in the confectionery and allied trades unemployed. Possibly the gravest menace to this country to-day is unemployment. This industry deserves some special consideration. I do not know whether I am in order in comparing the difference between a remission of taxation on sugar and on beer. It is safe to assume that, on a very generous estimate, not more than 9,000,000 of the population of this country are interested in the reduction in the Beer Duty, whereas practically everyone, down to the youngest child, is interested in a remission of taxation on sugar. I am satisfied that a remission of taxation of this character, giving a greater spending power to the poorest people, would have a greater effect in removing unemployment than a reduction of Income Tax. At this time, at any rate, sugar consumers have a prior claim to Income Tax payers. Then there is the jam industry. Hon. Members opposite seem to be particularly anxious to put the smallholders in a better position. Is there any better way of helping the smallholder than to lower the price of sugar and recreate the demand for fruit? In pre-War days we were able to sell a very good jam, a very wholesome food, largely consumed by the poorest people, at 2½d. per 1b. To-day it is 7d. or 8d. per lb., of which the Government take 25 per cent.

The tax is iniquitous on the poor consumer. My own feeling is that the House, however much it may try to retain its system of indirect taxation, will, at an early date, have to realise that the only form of taxation, with the exception, perhaps, of Excise Duties, will need to be direct taxation. No one will contend for a moment that the incidence of indirect taxation can be made fair, and in the case of sugar it is particularly unjust. Another very good argument for indirect taxation is that it is the only way in which you can bring clearly to the minds of the people whether they are being well governed or not. It would be the surest indicator of extravagance on the part of the Government. For these reasons, in the interests of the children and of the poor, because of their lower standard of living, and their greater taste or craze for sweet stuff, because sugar is necessary in their case to replace what they cannot afford to buy in other things—the well fed have not the same craving for sugar as the under-fed—in the interests of the poor the Sugar Duty claims the first consideration of the Committee. In the interests of a great industry—for we have heard a good lot, in connection with agriculture, about land being the raw material that must be relieved—it certainly has a right to priority. In the interests of common justice and fair play it demands the attention of the Government, and remission.

My only motive for intervening for a few moments in this Debate is that the Mover of the Clause we are now discussing cast some aspersions upon the efforts which some of us have been making for a number of years past to establish the beet sugar industry in this country. He made statements which require some correction with regard to the two beet sugar factories already in existence at Cantley, in Norfolk, and Kelham, on the Trent. He stated, first of all, that the remission of Excise Duty, which this infant industry now enjoys, meant that a gift of £110,000 went into the pockets of the owners of one factory last year. I think he suggested that it went into the pockets of Dutchmen—

In a sentence or two later, he suggested that on the other factory there was a loss of over £70,000, on the year 1921–22, which the Treasury had to make good. That last statement, I say at once, is definitely inaccurate. It is true, there was a heavy loss. It was not made good by the taxpayers of this country, nor by the Treasury. It was written off by a reduction of the shareholders' capital by 5s. in the £. The pound share was written down at a recent meeting. This is not an industry which can only run over here if it is bolstered up, or anything of that kind. It is an industry of great intricacy, which we have shown, beyond all possible doubt, can be established in this country, and only requires assistance during the development period, as it has required assistance in every other country in which it has started, including those where it has met with great success, such as in Germany and France. It was started, first of all, by Frederick the Great, Germany, not to produce sugar, but to retain the population in Pomerania, because the Pomeranians were the best recruits he had for his army. Napoleon, for other motives, started and fostered it in the development period of France during the Peninsular War.

No one, however, will deny the accuracy of my statement, that, wherever this industry has been successfully started, it has been fostered by the Government during the development period, owing to its extraordinary intricacy. It is intricate and novel in several respects. To begin with, to run a factory successfully, a very large volume of raw material is required. The sugar beet requires a method of cultivation which is quite novel to the British farmer and labourer.

The Cantley factory was built in 1912, and had its first full and profitable season last year. That was the first. I should think the development period for each successive factory would tend to be shorter, because knowledge and information will be disseminated, and those who have learned in one factory can go, and take charge in another. I will try to make my point that the intricacy is twofold. There is the agricultural novelty to which I have referred. The farmers in those counties where the factories exist have satisfied themselves that they can grow sugar beet at a profit, that it improves their land, and improves the following white straw crop. Very fine crops of barley and wheat have been grown after the sugar beet, which have entirely surpassed similar crops grown on similar land in the same neighbourhood, where beet has not preceded them.

The difficulty to be overcome in a factory is even greater than that in cultivation. The method of manufacture is a most intricate one, and it is a novel in this country. With the exception of a few factories in Canada, there have been none in the past in the British Empire, and the earlier processes of beet sugar manufacture differ from those of cane sugar manufacture. Consequently, we have to build up our experience, and everyone knows that is a costly affair. In the early days of any factory, there is a loss on the cultivation, on the handling, and on the manufacture. That is why, if the industry is to be established, assistance is required, as we are getting now, during the early days. It was also suggested by the Mover of this Clause—though I do not think he stated it in so many words, yet his words clearly bore the implication—that this industry was not worth establishing. I want to say one word upon that. Not only is a great deal of direct labour employed, at a time when every additional 100 men who can be employed is of great value to the country, but there is also a great indirect value to our industry of agriculture.

Everyone who has anything to do with agriculture knows well that if you are to grow corn you must clean your land. One of the great elements in the high cost of wheat, barley and oat production in the past has been that you have had to take a four-course rotation, or a rotation of some kind which includes a cleaning crop, and that the wheat, barley and oats have had to carry the cost of the cleaning crop, which does not pay for itself. Sugar beet has been proved in Germany, in France, and in every other country where it has been established to be not only the best of all the cleaning crops, but to pay for itself. If you can introduce successfully, as I claim we are well on the way to introduce, this new industry into our agricultural districts here, then, apart from the direct employment of additional labour, you will have this new element, which will tend to reduce the price at which our farmers can profitably grow wheat, barley and oats, and will help more than any other suggestion that has been made toward relieving the problem of home-production of food and the question of distress in the arable agricultural districts. I do not wish to say any more, but I could not allow the statements made by the Mover of this Clause to go uncontradicted; and I hope that all sections of the Committee will agree that this is worth establishing, and will support the efforts which are being made to that end.

I have no intention of delaying the Committee more than a very few minutes on this subject. I completely associate myself with everything that has been said regarding the desirability of cheapening sugar as much as possible, and also with the argument that if sugar is to be cheapened in this country the present excessive burden of taxation must be reduced. I only rise to offer a few sentences by way of elucidation, if I can only manage it, of the economic point made by my right hon. Friend, regarding the effect of an increase in consumption upon possible prices. It was a point I took, very hurriedly, and without any preparation, immediately after my right hon. Friend the Chancellor of the Exchequer introduced his Budget. The quotation, which was given from the "Economist," must not, I think, be taken to be the final view of the "Economist" itself, because the position is this, that if the price that was prevailing at the time when the Budget was introduced, and has prevailed since up to within a few days ago, is the indication either of a shortage—a natural shortage—or a monopoly forcing up prices artificially, then, I think, the position is perfectly clear that no reduction of taxation is to be any value to the consumer. But is that so?

First of all, we are dealing now merely with a monopoly price, which is fixed, not in relation to the cost of production, but in relation to what can be got out of the pockets of the consumer. The Chancellor of the Exchequer's argument, in introducing his Budget, was this, "If I take off taxation I am not cheapening sugar here, because those who control the price of sugar will know that there is a certain amount of free money in the pockets of the consumers of sugar, and they will put up the price of sugar accordingly. Therefore, instead of a reduction of taxation, which would add difficulties to our Exchequer, benefiting the consumer, what it would do would be to put more money into the pockets of the sugar monopoly." That is a very good economic argument, provided the conditions justify it. The conditions do not justify it. As a matter of fact—let us assume that a monopoly in America is being created—as soon as the monopoly is created we go at once and buy sugar in other markets. Therefore, the American sugar brokers know perfectly well that if a few pence are taken off the taxation borne per pound by sugar consumers in this country, they cannot go on, and assume that they can add that to the price. It is thoroughly fallacious.

8.0 P.M.

The reason why there is any sort of shortage in America to-day is that there has been a concerted attempt to reduce the area of production. It has not been very successful, I know. For instance, the Cuba acreage has increased from 2,500,000 acres before the War to about 4,000,000 acres. But there is a very determined attempt being made to reduce the area of production, in order that the production itself may be more controllable than it would be on a larger area of production. If that succeeds when are we going to get taxation reduced on sugar at all? If the argument now put up be sound, that whilst it is possible to control prices by rings or by monopolists, it is no use taking off taxation, then, so far as the future is concerned, and the efforts of these American brokers, the Cuban producers, and so on are concerned, they are going to continue to do that. The area of production in the United States itself has been very substantially reduced. The beet production has been limited, and other production has taken its place. Therefore, if it be the policy of our Government to wait until a monopoly is impossible before they take off taxation, we shall wait until the Greek Kalends. But the other point is this. That is assuming a monopoly which I do not assume at all. Would cheapened sugar increase consumption so much as to create a shortage which would again keep up prices? Again, I do not believe that is true. The Financial Secretary quoted a statement from the American Department of Commerce. That statement is wrong.

My hon. Friend surely does not mean that I misquoted the statement? He merely means, I assume, that he does not agree with it?

It is more than that. I will explain. The Financial Secretary quoted a statement that in 1921–22 the world consumption of sugar was 500,000 tons greater than the production and that the prospects are that it will be 700,000 tons greater in 1922–23, and so on. What is the explanation of that? The Department of Commerce issued a very elaborate statistical table, in fact, a series of tables, and put at the top the sentence referred to. But as a matter of fact, it was pointed out immediately afterwards—and Mr. Hoover himself joined in pointing out the mistake—that the statistical table did not bear out the sort of newspaper headings that were attached to it; that, so far from there being a shortage of 700,000 tons in 1922–23, the tables themselves only showed a shortage of 476,000, a lesser shortage than for the year before. The explanation may be as it likes, but the subsequent events are exceedingly interesting as showing how very fallacious the whole economic argument of the Chancellor and the Treasury is. As soon as that was issued in America—it was issued in all the newspapers—everybody said there was to be a shortage. The moment that was whispered up went prices. They went up 100 points in one day, not because there was a shortage, not because there was a monopoly, but because there was a panic caused by the publication of the sentences which were read by the Financial Secretary to the Treasury. The day after prices went up further. Raw sugar went up. Refined went up, and the grocer changed his prices immediately, and two months after the Department of Commerce had issued that statement sugar was still going up. It was purely artificial. Three days after the statement was issued, Mr. Secretary Hoover assured the country that there was no shortage, but that on the contrary

"we may expect a surplus of 476,000 tons, about five-eighths as much as the average surplus before the War."

But still prices went up. Then the Department of Justice in America announced that the price was unjustified. The Tariff Commission took the matter into their hands. The President himself issued a telegram stating that he considered the price was unjustified and required a reduction of about 50 per cent. Every authority in America, down to the housewife who was mulcted in the end by this extraordinary statement, began to take action, and the result is that very slowly prices are being brought down. That is a rather serious reflection on the operation of a system which right hon. and hon. Members opposite regard as the last word in efficient production in the interests of the public. I was rather surprised when my right hon. Friend quoted what he did, because I had a very lively recollection of what had appeared in the American Press on the subject, and it was only to point that out that I ventured to intervene in the Debate at all. If these are the facts, and they are the facts, they provide no justification whatever for the Government maintaining this excessive tax. It is keeping up the price of sugar. If the tax were taken off, the price of English sugar would fall. This economic machinery is in operation, but it cannot last long. As soon as that breaks, then the British consumer of sugar, whether it is the household consumer or the manufacturing consumer, will get the benefit of the reduced taxation. It is for that reason that I shall certainly vote for the new Clause that has been moved by my hon. Friend.

I would like to make one remark in explanation of the statement I made. I did not misquote the statement of the American Department of Commerce and I have not seen the subsequent statement in the American Press to which the Leader of the Opposition has referred. I quite accept his statement as to the correctness of these subsequent announcements by Mr. Secretary Hoover and others. One point occurred to me while he was speaking. While this was going on in America, this obvious juggling with the price of sugar, if we had at that identical moment reduced our tax on sugar—because that was going on while my right hon. Friend the Chancellor of the Exchequer was making his Budget speech—if we had chosen at that moment to reduce our tax on sugar for the purpose of increasing consumption in Great Britain, that would have been regarded by the American speculator as a bull point. I am not saying it would have increased the bull position, but it would have been taken advantage of by speculators of that character. The lowering of prices would have been kept back as a result of that.

I agree with a certain amount of what the Leader of the Opposition stated about American sugar, but I cannot agree with all his figures. The first thing to realise is that the market is in America and that the rise in the price of sugar started with the Fordney Tariff last September. The price of 1·76 was put on Cuban sugar going into America. From there we come to the actual carry-forward of sugar for the various countries. If you take 1913, I think you will find that the total carry-forward of sugar was 800,000 tons. In 1922 it was 1,000,000 tons, but the carry-forward this year—these figures I am reading are not newspaper figures although they come from the other side—was 476,000 tons. I think what the Leader of the Opposition says about production is right, but I think the reduction in the production was in 1921. In 1921 Mr. Hoover was most anxious to encourage beet sugar in the United States of America, and in that year he asked the Cuban producers to reduce their area from, I think, about 4,000,000 to about 2,500,000. Some of them agreed and some did not agree, but I think that was in 1921. In regard to it being a monopoly, I can hardly agree with the leader of the opposition. Although the market is in America, it is not quite a monopoly. I dare say the Leader of the Opposition has seen a cutting from the "Evening News" of to-night where it states that sugar is down 5s. a cwt. What interests me more is just a little paragraph which states that American prices govern the markets here. It is the stand made by the refiners over there against the demands of the dealers that has led to the present decrease. It shows there what the Leader of the Opposition has said, that the prices are coming down. But we have got to remember that the consumption in America is gigantic compared to what it was a few years ago, owing to Pussyfoot Johnson—to put it plainly—and that consumption is more likely to go up than to come down. The prices may have fallen simply because the President of the United States put forward a decree stopping the speculator in sugar from making a rise in the market price. I feel sure that since that decree was put out by the President of the United States you have got a gradual reduction in the privce of sugar, and that might continue in a slight way, but I hardly think that if we were to reduce our tax on sugar in this country it would really benefit the actual consumer.

I agree with the hon. Member for Hillsborough (Mr. A. V. Alexander), who moved the Amendment, in his statement that this is a vital food. It is vital for the poor as well as for the rich, and I always understood that one of the great troubles at the beginning of the War was that we had not sufficient sugar to go round. In 1913–14 I believe we purchased £12,000,000 sterling of beet sugar from Germany and Central Europe. A great part of that production has since been done away with, and actually Germany is importing sugar into their own country. The world consumption has increased, I think, by 500,000 tons, as stated by the Financial Secretary to the Treasury, and it may in- crease still further. The only way we can grapple with it is by becoming independent of the American market and by encouraging the West Indies, British Guiana and India to produce sugar. The preference given by other countries is a good deal greater than the preference given by this country. In the United States it is 10s. 1d. per cwt.; in France, taking the franc at 75, it is 13s., and I believe in this country it is only 3s. 9d. per cwt. I am in favour, in regard to this most important article of diet, of endeavouring to encourage the growing of sugar in our own colonies. As far as we as a country are concerned, I understand that between January and May our actual consumption has gone down. I feel that we are still at the mercy of the American market, and that we should endeavour to encourage the growing of sugar in our various Dominions and Colonies.

I desire to support the proposal for the repeal of the duty on sugar, and I compliment the Mover of the new Clause for the clearness of his speech and the manner in which he handled this technical subject, which the Financial Secretary to the Treasury almost completely ignored. We have had two speeches from the Liberal benches, but we have not yet heard where the Liberal party stands on this Amendment, except from its leader, who said he would vote against this duty. That is very much like Liberalism—

In the last few years hundreds of child welfare committees have been springing up in the country. We have seen an interest taken in child welfare which has become a welcome institution in our public life. Thousands of people are voluntarily interesting themselves in trying to preserve child life, and their work, along with the medical officers, the visitors, and the district nurses, has done much to reduce the percentage of child mortality; but they have been handicapped and hampered by the dearness of sugar, which enters so much into the necessities of child life. I should never hesitate at any time to vote against anything which would injure the physical development of children. Sugar is necessary, not only for physical efficiency in regard to the child, but we have to remember that the children from working-class homes become the manual workers, and those of us who have been manual workers know what that means. The children of most hon. Members of this House have never known the want of a meal, and perhaps most hon. Members have never done any manual work, Therefore, they may not know the great difference there is in a stunted person, who has been handicapped in his child life, and who when he gets into hard work finds it very difficult. There are many hard-working men who are small in stature, and they always admit that there is a great advantage in being developed to the full and being strong and fit for their position.

Sugar is an important factor in many things necessary for the upbringing of the people. It is a necessary factor in the manufacture of many articles of food. It is a necessity in the life of the people. It is for that reason that I support the proposition that we repeal the duty on sugar. We are asked where the money is to come from. That is the only argument that I have ever heard from a Chancellor of the Exchequer against the repeal of the duty since I came to this House in 1918, until to-night when we have had an additional argument which has been dealt with by the Leader of the Opposition. There is far more reasonableness and more common-sense in retaining the Income Tax at the figure at which it stood a month or two ago than in maintaining a duty upon the necessities of the life of the people. If hon. Members were left free to vote in consideration to their constituents they would vote for the repeal of this duty. I hear hon. Members opposite talking about the Labour party being hide-bound by the resolutions of conferences, and they talk of their own independence, and then I see the coils of the Whips round them when it comes to voting. Release those coils to-night in this vote, and I am convinced that most Members from industrial districts, where people live thickest, and where they are feeling the pinch in hundreds of thousands of homes, by reason of unemployment, low wages and the high cost of living, and those hon. Members if they do their duty would vote for this repeal of the Sugar Duty. However, they are loyal to their Government, and not to the interests of their constituents, and that is the reason why they will vote against this new Clause. I have no hesitation, and I hope I never shall have any hesitation, in voting against taxation of this sort.

This matter interests me very considerably, but from a different point of view than has been mentioned to-night. I am Very pleased that we have now in this House the hon. Member for Hillsborough (Mr. A. V. Alexander). The speeches generally from the other side have been criticising the Government because they have reduced direct taxation and have failed to reduce the indirect taxation on so important a food as sugar. Probably it will not be news to hon. Members opposite if I inform them that I am going to vote against this Amendment, but it may be news to them that I sincerely and fully sympathise with them in their desire to see that necessary of life, sugar, reduced in taxation, and that I intend to do my utmost in whatever way I can to make it possible that they shall be able to obtain more sugar not with reduced taxation but with no taxation whatever.

That is exactly the argument that was used for 30 years by the opponents of the removal of the Corn Laws.

I have no recollection of the arguments used against the repeal of the Corn Laws. The point which I wish to make is that hon. Members opposite are criticising the Government because it is not reducing the Excise upon sugar. May I remind them that the present Government has taken the whole of the duty off one form of sugar—sugar manufactured in this country—and that the housewives of this country can to-day go into the shops of the country and buy English manufactured sugar with the knowledge that they are not paying any tax upon the sugar.

I recognise that it is only some part of the sugar which they can buy free of tax. As the hon. Member for Rye has told us, there are only two factories in this country at present, each of which produces about 10,000 tons of sugar per year, or 20,000 tons in all, while the consumption of sugar is approximately 1,500,000 tons of sugar, so that the amount produced in this country is proportionately very small. I desire to see more and more home-grown sugar in this country with no tax whatever upon it. I desire to put the matter from the point of view of agriculture. There was a rather harrowing article in one of the daily papers to-day on the position of the English countryside. You have been told, and told truly, that the position of the English countryside to-day is difficult. Arable land is going down to grass, and that rapidly. We all want the land of England to produce more foodstuffs. We want to be less dependent on food imported from abroad. [HON. MEMBERS: "Tax land value!"] It may be said that we want to increase the food production of the country, to prepare possibly for the time when our supplies are cut off by the next war. I submit that there are other reasons. This country, as a result of the War, is no longer the rich country it was before the War. No longer can we command other countries who owe us money to supply foodstuffs in place of that money. All the food imported into this country has to be bought, and we, being no longer a rich country, are unable to buy as freely as before the War. It is in the financial interests of the country that we should reduce the amount of money that we have to pay for foreign imported foodstuffs. I am an agriculturist, and if I, as a patriotic agriculturist, were to plough up grass——

The hon. Member is becoming rather general. We are discussing the question of the taxation of sugar.

I will get back to sugar immediately. If I, as a patriotic Englishman, were to plough up one acre of grass land and put it down with sugar beet, I should be saving my country the purchase of one and a half tons of sugar which, at the prices mentioned this evening, would represent £45 worth of foreign sugar. Compare this with one acre of wheat which would only save my country from buying £10 worth of wheat. I submit that, in the interests of the country, we should save the expenditure on 1,500,000 tons of sugar which, at £30 a ton, represents £45,000,000, which we are paying to other countries for imported sugar. I want to see that £45,000,000 going to the agricultural labourer, and the labourer employed in the factories of this country, instead of to the labourer in America and elsewhere.

I submit, in conclusion, that it is not only in the interests of this country as a whole that we should see the amount of money which goes to purchase this foreign sugar, but it is definitely in the interests of British agriculture that British agriculture should have an industry to-day, and that this £45,000,000 should go to help British agriculture in its pressing necessity. I submit also that there should be another source of production of sugar, so that we should not be so dependent upon the financial rings which are holding up sugar at the present time. Therefore I ask the Committee, in the interests of themselves and of the country, not to quibble about the tax on imported sugar but in the general interest to develop the new industry of home-grown sugar.

The Financial Secretary, in his concluding observations, left the impression upon my mind that when the attack was made upon this tax in the Debate on the Budget a short time ago it might have been dangerous to abolish the tax at that particular time, and it left on my mind the hope it might be possible in more favourable conditions now to reduce or abolish the tax. This is one of the taxes which ought to be done away with for ever. It is a tax upon the food of our children, and the children are the most important asset of the State. To some of us who are getting into the sere and yellow leaf the tax does not matter much, but it does matter for the future of the State and the Empire that the children should have the fullest supply possible of this most serviceable food.

Some years ago it was my business to help my wife to purchase commodities week after week. I am becoming perhaps somewhat lazy in that direction now, or it may be because the prices are so high, but in those days lump sugar was 10d. for 4 lbs., soft sugar 9d., and coarse sugar 8½d. Sugar was one of the chief foods of our breakfast, dinner and tea table. The figure of 10d. for 4 lbs. now represents round about the rate of the tax, and I suggest that the tax is not giving any benefit to the producers, while it is doing a great deal of harm to the consumers. The Financial Secretary says that the monopolists would raise the price of sugar if the tax were reduced, but they raise the price in any case, and the tax does not stop them from doing wicked things such as they have been doing during the past few years. An hon. Member who spoke earlier in the Debate was probably ashamed just now of private enterprise in regard to the question of sugar. It is private enterprise which causes the price of sugar to go up. It is commercially-minded and speculatively-minded people who corner the sugar and increase the price, and our people at home are suffering, because of this particular development in the system of private enterprise.

All food taxes are wrong, and this tax is wrong, but if the Financial Secretary cannot see his way to abolish or reduce the tax, I hope he will meet us to some extent, and try to deal with the hardship by making a concession. Children require sugar, and an allowance should be made from Income Tax and from the rates so that people with several children might have a rebate to meet the increased cost of sugar for the children. There are also the old age pensioners, people out of employment, widows and others in difficult circumstances who should have an allowance made to them in respect of the burden of this tax. They ought to get relief somewhere. Many of us can afford the cost of sugar, but there are 10,000,000 people in this kingdom who are burdened because of this tax. What does it mean to the weaver in a cotton mill or a woollen mill? It means working at least two or three hours per week to pay the tax upon sugar. Take the present price of 4 lbs. of sugar and take the case of a lass of 14 years of age, working at two looms in a cotton mill, or one loom in a woollen mill, as the case may be, and earning wages which work out at about 3¼d. per hour. It means that she has to work three hours to earn enough to pay the tax upon that amount of sugar. The policy of alleged "ca' canny" on the part of the sugar growers is, in itself, a denunciation of the principle of private enterprise and capitalistic endeavour. It has been many times alleged that industrial workers have indulged in the policy of "ca' canny." That may have been true in some cases, but mostly it was not true, and I am ashamed to see commercial people, in this and other countries, deliberately adopting the policy of reduced production for the purpose of keeping up prices. That is an immoral thing, and this war upon children, upon old-age pensioners, and upon the unemployed is one which this Committee ought not to support, and the Sugar Tax, like all other food taxes, should be wiped out immediately.

Spokesmen of the Government this afternoon and during the Budget Debates have argued that if the duty were withdrawn, consumption would be increased, and prices would rise. That statement was made in March last. I propose to submit figures from the "Times" which show that the main contention of the Government in that respect falls to the ground. On 14th March the price of white Java sugar was 28s. 9d.; on 15th June the price for the same quality of sugar was 26s. The price of sugar, for delivery in August, on 14th March was 30s. 10d.; and on 15th June the official price, for delivery in August, was 27s. 7d. In March the price of sugar, for October delivery, was 28s.; on 15th June, for the same quality for delivery in October, the price was 25s. The Prime Minister feared that if the duty were lowered the American ring of speculators and the growers of sugar throughout the world would, with the increased consumption which might and would take place in this country, raise the price, but, as I have shown, the

forward price of sugar has fallen and if the duty had been withdrawn the fears of the Prime Minister, it might well be, would not have been realised, and the reduction would have been passed on to the consumer. I agree that in questions of prices it is difficult to be certain of any factor, but I think I have definitely shown that the prices controlled by the ring in the early months of this year have been broken and that there is a sharp and steady fall, which will reach the consumer in due course.

The Financial Secretary said he could not afford to lower the duty. May I point out that since the introduction of the Finance Bill two or three big concessions have been made to certain parties. We have had a concession to the small property owners this afternoon, costing the Exchequer £1,500,000. Some four or five weeks ago the Government announced a concession to farmers and landowners amounting to £2,750,000. In other words, since the introduction of the Budget, concessions to certain parties in the State have been announced, costing the taxpayers £4,250,000. We plead not in the interests of any particular trade; not in the interests of any particular class, but in the interests of the consumers of this country, for a concession in this respect. A fall in the cost of living of two points would take place if the price of sugar were reduced by 1d. per lb., according to the circular issued by the Sugar Refiners' Association. What a big effect that would have on Government expenditure! I read this morning that railway servants' wages are being reviewed because the cost of living has fallen. In view of the continued and steady fall in the cost of sugar, in view of the vital necessity of lowering the cost of living due to taxation, and, above all, in the interests of the consumer, I hope that we have not heard the last word from the Government on this subject during the Committee stage of this Bill.

Question put, "That the Clause be read a Second time."

The Committee divided: Ayes, 153; Noes, 257.

Division No. 220.]

AYES.

[8.47 p.m.

Adams, D.

Barnes, A.

Buchanan, G.

Adamson, Rt. Hon. William

Barrie, Sir Charles Coupar (Banff)

Buckle, J.

Adkins, Sir William Ryland Dent

Benn, Captain Wedgwood (Leith)

Burgess, S.

Alexander, A. V. (Sheffield, Hillsbro')

Bonwick, A.

Burnle, Major J. (Bootle)

Ammon, Charles George

Bowerman, Rt. Hon. Charles W.

Butler, J. R. M. (Cambridge Univ.)

Attlee, C. R.

Broad, F. A.

Buxton, Charles (Accrington)

Barker, G. (Monmouth, Abertillery)

Brown, James (Ayr and Bute)

Buxton, Noel (Norfolk, North)

Cape, Thomas

Hogge, James Myles

Roberts, C. H. (Derby)

Charleton, H. C.

Irving, Dan

Royce, William Stapleton

Clarke, Sir E. C.

Jenkins, W. (Glamorgan, Neath)

Saklatvala, S.

Collie, Sir John

Jenkins, w. A. (Brecon and Radnor)

Salter, Dr. A.

Collins, Sir Godfrey (Greenock)

John, William (Rhondda, West)

Scrymgeour, E.

Collins, Pat (Walsall)

Johnston, Thomas (Stirling)

Sexton, James

Collison, Levi

Jones, Henry Haydn (Merioneth)

Shaw, Thomas (Preston)

Cotts, Sir William Dingwall Mitchell

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

Shinwell, Emanuel

Cowan, D. M. (Scottish Universities)

Jones, T. I. Mardy (Pontypridd)

Short, Alfred (Wednesbury)

Davies, Evan (Ebbw Vale)

Jowett, F. W. (Bradford, East)

Simon, Rt. Hon. Sir John

Davison, J. E. (Smethwick)

Kenworthy, Lieut.-Commander J. M.

Sitch, Charles H.

Duffy, T. Gavan

Kenyon, Barnet

Smith, T. (Pontefract)

Duncan, C.

Kirkwood, D.

Snell, Harry

Dunnico, H.

Lawson, John James

Snowden, Philip

Ede, James Chuter

Leach, W.

Spencer, George A. (Broxtowe)

Edwards, C. (Monmouth, Bedwellty)

Lee, F.

Stephenson, Lieut.-Colonel H. K.

Entwistle, Major C. F.

Lees-Smith, H. B. (Keighley)

Stephen, Campbell

Evans, Ernest (Cardigan)

Linfield, F. C.

Stewart, J. (St. Rollox)

Foot, Isaac

Lowth, T.

Strauss, Edward Anthony

Gilbert, James Daniel

Lunn, William

Sturrock, J. Leng

Gosling, Harry

MacDonald, J. R. (Aberavon)

Sullivan, J.

Graham, W. (Edinburgh, Central)

McLaren, Andrew

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

Gray, Frank (Oxford)

Maclean, Neil (Glasgow, Govan)

Thorne, G. R. (Wolverhampton, E.)

Greenall, T.

March, S.

Thorne, W. (West Ham, Plaistow)

Greenwood, A. (Nelson and Colne)

Middleton, G.

Trevelyan, C. P.

Grenfell, D. R. (Glamorgan)

Morel, E. D.

Turner, Ben

Groves, T.

Morris, Harold

Twist, H.

Grundy, T. W.

Morrison, R. C. (Tottenham, N.)

Walsh, Stephen (Lancaster, Ince)

Guthrie, Thomas Maule

Murnin, H.

Watson, W. M. (Dunfermline)

Hall, F. (York, W.R., Normanton)

Murray, John (Leeds, West)

Watts-Morgan, Lt.-Col. D. (Rhondda)

Hall, G. H. (Merthyr Tydvil)

Murray, R. (Renfrew, Western)

Wedgwood, Colonel Josiah C.

Harbord, Arthur

O'Grady, Captain James

Welsh, J. C.

Hardie, George D.

Oliver, George Harold

Westwood, J.

Harris, Percy A.

Parker, H. (Hanley)

Wheatley, J.

Hay, Captain J. P. (Cathcart)

Parkinson, John Allen (Wigan)

White, Charles F. (Derby, Western)

Hayday, Arthur

Parry, Lieut.-Colonel Thomas Henry

Williams, Dr. J. H. (Llanelly)

Hayes, John Henry (Edge Hill)

Phillipps, Vivian

Williams, T. (York, Don Valley)

Hemmerde, E. G.

Ponsonby, Arthur

Wilson, C. H. (Sheffield, Attercliffe)

Herriotts, J.

Potts, John S.

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

Hill, A.

Pringle, W. M. R.

Wright, W.

Hillary, A. E.

Rees, Sir Beddoe

Young, Rt. Hon. E. H. (Norwich)

Hinds, John

Richards, R.

Young, Robert (Lancaster, Newton)

Hirst, G. H.

Richardson, R. (Houghton-le-Spring)

Hodge, Rt. Hon. John

Riley, Ben

TELLERS FOR THE AYES .—Mr. T. Griffiths and Mr. Morgan Jones..—Mr. T. Griffiths and Mr. Morgan Jones.

Hodge, Lieut.-Col. J. P. (Preston)

Ritson, J.

NOES.

Agg-Gardner, Sir James Tynte

Butcher, Sir John George

Eyres-Monsell, Com. Bolton M.

Allen, Lieut.-Col. Sir William James

Butler, H. M. (Leeds, North)

Falcon, Captain Michael

Amery, Rt. Hon. Leopold C. M. S.

Butt, Sir Alfred

Falle, Major Sir Bertram Godfray

Ashley, Lt.-Col. Wilfrid W.

Button, H. S.

Fawkes, Major F. H.

Astbury, Lieut.-Com. Frederick W.

Campion, Lieut.-Colonel W. R.

Flanagan, W. H.

Astor, J. J. (Kent, Dover)

Cassels, J. D.

Ford, Patrick Johnston

Austin, Sir Herbert

Cautley, Henry Strother

Foreman, Sir Henry

Baird, Rt. Hon. Sir John Lawrence

Chamberlain, Rt. Hon. N. (Ladywood)

Forestier-Walker, L.

Baldwin, Rt. Hon. Stanley

Chapman, Sir S.

Foxcroft, Captain Charles Talbot

Balfour, George (Hampstead)

Chilcott, Sir Warden

Fraser, Major Sir Keith

Banbury, Rt. Hon. Sir Frederick G.

Churchman, Sir Arthur

Frece, Sir Walter de

Banks, Mitchell

Clarry, Reginald George

Fremantle, Lieut.-Colonel Francis E.

Barnett, Major Richard W.

Cobb, Sir Cyril

Furness, G. J.

Barnston, Major Harry

Cockerill, Brigadier-General G. K.

Galbraith, J. F. W.

Becker, Harry

Colfox, Major Wm. Phillips

Ganzoni, Sir John

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

Conway, Sir W. Martin

Garland, C. S.

Bellairs, Commander Carlyon W.

Cope, Major William

Gates, Percy

Bennett, Sir T. J. (Sevenoaks)

Courthope, Lieut.-Col. George L.

Gilmour, Lt.-Col. Rt. Hon. Sir John

Berry, Sir George

Craig, Captain C. C. (Antrim, South)

Goff, Sir R. Park

Betterton, Henry B.

Crook, C. W. (East Ham, North)

Gould, James C.

Birchall, Major J. Dearman

Crooke, J. Smedley (Deritend)

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

Bird, Sir R. B. (Wolverhampton, W.)

Dalziel, Sir D. (Lambeth, Brixton)

Greenwood, William (Stockport)

Bird, Sir William B. M. (Chichester)

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

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

Blades, Sir George Rowland

Davidson, Major-General Sir J. H.

Gwynne, Rupert S.

Blundell, F. N.

Davies, Thomas (Cirencester)

Hacking, Captain Douglas H.

Bowyer, Captain G. E. W.

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

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

Brass, Captain W.

Dixon, C. H. (Rutland)

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

Brassey, Sir Leonard

Doyle, N. Grattan

Halstead, Major D.

Bridgeman, Rt. Hon. William Clive

Du Pre, Colonel William Baring

Hamilton, Sir George C. (Altrincham)

Brown, Brig.-Gen. Clifton (Newbury)

Edmondson, Major A. J.

Hannon, Patrick Joseph Henry

Bruford, R.

Ednam, Viscount

Harmsworth, Hon. E. C. (Kent)

Bruton, Sir James

Elliot, Captain Walter E. (Lanark)

Harrison, F. C.

Buckingham, Sir H.

Ellis, R. G.

Harvey, Major S. E.

Buckley, Lieut.-Colonel A.

Erskine, James Malcolm Monteith

Hawke, John Anthony

Bull, Rt. Hon. Sir William James

Erskine, Lord (Weston-super-Mare)

Henn, Sir Sydney H.

Burn, Colonel Sir Charles Rosdew

Erskine-Bolst, Captain C.

Hennessy, Major J. R. G.

Herbert, Dennis (Hertford, Watford)

Morden, Col. W. Grant

Russell-Wells, Sir Sydney

Herbert, S. (Scarborough)

Morrison, Hugh (Wilts, Salisbury)

Samuel, A. M. (Surrey, Farnham)

Hewett, Sir J. P.

Morrison-Bell, Major A. C. (Honiton)

Samuel, Samuel (W'dsworth, Putney)

Hilder, Lieut.-Colonel Frank

Murchison, C. K.

Sanders, Rt. Hon. Sir Robert A.

Hiley, Sir Ernest

Nall, Major Joseph

Sanderson, Sir Frank B.

Hoare, Lt.-Col. Rt. Hon. Sir S. J. G.

Nesbitt, Robert C.

Sandon, Lord

Hogg, Rt. Hon. Sir D. (St. Marylebone)

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

Sheffield, Sir Berkeley

Hohler, Gerald Fitzroy

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

Shepperson, E. W.

Holbrook, Sir Arthur Richard

Newson, Sir Percy Wilson

Simpson-Hinchcliffe, W. A.

Hood, Sir Joseph

Nicholson, Brig.-Gen. J. (Westminster)

Skelton, A. N.

Hopkins, John W. W.

Nicholson, William G. (Petersfield)

Smith, Sir Allan M. (Croydon, South)

Hopkinson, A. (Lancaster, Mossley)

Nield, Sir Herbert

Somerville, A. A. (Windsor)

Houfton, John Plowright

Norton-Griffiths, Lieut.-Col. Sir John

Somerville, Daniel (Barrow-in-Furness)

Howard, Capt. D. (Cumberland, N.)

Ormsby-Gore, Hon. William

Spender-Clay, Lieut-Colonel H. H.

Howard-Bury, Lieut.-Col. C. K.

Parker, Owen (Kettering)

Stanley, Lord

Hudson, Capt. A.

Pease, William Edwin

Steel, Major S. Strang

Hughes, Collingwood

Pennefather, De Fonblanque

Stewart, Gershom (Wirral)

Hume, G. H.

Penny, Frederick George

Sueter, Rear-Admiral Murray Fraser

Hume-Williams, Sir W. Ellis

Percy, Lord Eustace (Hastings)

Sugden, Sir Wilfrid H.

Hunter-Weston, Lt.-Gen. Sir Aylmer

Perkins, Colonel E. K.

Sykes, Major-Gen. Sir Frederick H.

Hurd, Percy A.

Perring, William George

Terrell, Captain R. (Oxford, Henley)

Hurst, Lt.-Col. Gerald Berkeley

Peto, Basil E.

Thompson, Luke (Sunderland)

Hutchison, G. A. C. (Midlothian, N.)

Philipson, Mabel

Thomson, F. C. (Aberdeen, South)

Inskip, Sir Thomas Walker H.

Pilditch, Sir Philip

Thorpe, Captain John Henry

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

Pollock, Rt. Hon. Sir Ernest Murray

Titchfield, Marquess of

James, Lieut.-Colonel Hon. Cuthbert

Pownall, Lieut.-Colonel Assheton

Tryon, Rt. Hon. George Clement

Jephcott, A. R.

Privett, F. J.

Tubbs, S. W.

Jodrell, Sir Neville Paul

Rae, Sir Henry N.

Turton, Edmund Russborough

Johnson, Sir L. (Walthamstow, E.)

Raeburn, Sir William H.

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

Jones, G. W. H. (Stoke Newington)

Raine, W.

Waring, Major Walter

Joynson-Hicks, Sir William

Rankin, Captain James Stuart

Watson, Capt. J. (Stockton-on-Tees)

Kelley, Major Fred (Rotherham)

Rawlinson, Rt. Hon. John Fredk. Peel

Watts, Dr. T. (Man., Withington)

Kennedy, Captain M. S. Nigel

Rawson, Lieut.-Com. A. C.

Wells, S. R.

King, Captain Henry Douglas

Reid, Capt. A. S. C. (Warrington)

Weston, Colonel John Wakefield

Lane-Fox, Lieut.-Colonel G. R.

Reid, D. D. (County Down)

Wheler, Col. Granville C. H.

Leigh, Sir John (Clapham)

Remer, J. R.

White, Lt.-Col. G. D. (Southport)

Lloyd, Cyril E. (Dudley)

Remnant, Sir James

Wilson, Col. M. J. (Richmond)

Lloyd-Greame, Rt. Hon. Sir Philip

Rentoul, G. S.

Windsor-Clive, Lieut.-Colonel George

Lorden, John William

Reynolds, W. G. W.

Winterton, Earl

Lorimer, H. D.

Rhodes, Lieut.-Col. J. P.

Wise, Frederick

Lort-Williams, J.

Richardson, Sir Alex. (Gravesend)

Wolmer, Viscount

Lougher, L.

Richardson, Lt.-Col. Sir P. (Chertsey)

Wood, Rt. Hn. Edward F. L. (Ripon)

Loyd, Arthur Thomas (Abingdon)

Roberts, Samuel (Hereford, Hereford)

Wood, Major Sir S. Hill-(High Peak)

Lumley, L. R.

Roberts, Rt. Hon. Sir S. (Ecclesall)

Woodcock, Colonel H. C.

Lynn, R. J.

Robertson-Despencer, Major (Islgtn,W)

Worthington-Evans, Rt. Hon. Sir L.

McNeill, Ronald (Kent, Canterbury)

Rogerson, Capt. J. E.

Yate, Colonel Sir Charles Edward

Maitland, Sir Arthur D. Steel

Rothschild, Lionel de

Yerburgh, R. D. T.

Margesson, H. D. R.

Roundell, Colonel R. F.

Mercer, Colonel H.

Ruggles-Brise, Major E.

TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs.

Mitchell, Sir W. Lane (Streatham)

Russell, Alexander West (Tynemouth)

Moison, Major John Elsdale

Russell, William (Bolton)

I believe that the hon. Member for Colne Valley (Mr. Snowden) desires formally to move the new Clause standing in his name.

Yes, I think, in the circumstances, I should.

NEW CLAUSE.—(Inhabited House Duty.)

As from the fifth day of April, nineteen hundred and twenty-three, as respects England, and as from the twenty-fourth day of May, in the same year, as respects Scotland, the Inhabited House Duty payable under the provisions of the Acts relating to Inhabited House Duty in respect of a house of a less annual value than thirty pounds shall cease and determine, and the duty payable upon a house of an annual value of thirty pounds and less than sixty pounds shall be at the reduced rate of three pence in the pound, and the duty payable upon a house of an annual value of sixty pounds or upwards shall be at the reduced rate of six pence in the pound.—[ Mr. Snowden. ]

Brought up, and read the First time.

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

Might I suggest to the Financial Secretary that he might accept this Amendment, in view of what took place earlier. There is a difference between my Amendment and the concession that he has made. I cannot help thinking that he might accept the Amendment now, and, on Report, make the necessary alterations.

My technical advisers do not quite like the wording of the hon. Member's Amendment. As I said this afternoon, in view of the proposals put forward by one or two of my colleagues on this side of the Committee, some alteration of the wording would seem to be needed. But I am quite willing to show the hon. Member for Colne Valley the Clause that I propose to move on Report.

In these circumstances, I ask leave to withdraw the proposed new Clause.

Motion and Clause, by leave, withdrawn.

NEW CLAUSE.—(Repeal of Entertainments Duty.)

Sections one and two of the Finance (New Duties) Act, 1916 (which relate to Entertainments Duty), as amended by any subsequent enactments, are hereby repealed.—[ Lieut.-Commander Kenworthy. ]

Brought up, and read the First time.

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

9.0 P.M.

May I say that I did not expect my hon. and gallant Friend the Member for South East Leeds (Captain O'Grady) to be away at this moment, and I hope that before we get much further he will put in an appearance to second the Motion. At any rate, if he does not, my hon. and learned Friend the Member for Crewe (Mr. Hemmerde) will second. I need not spend a great deal of time on this proposed Clause, except to say that up and down the country the Entertainments Duty is, I think, the most unpopular tax that was imposed during the War period. It was imposed on the understanding given to the trade, and the entertainers themselves, that it would be repealed at the close of the War, or very shortly afterwards. It is a very great pity that the pledge, or understanding, was not followed up, because the tax has caused a great deal of resentment. It is most objectionable at any time to tax the amusements of the people, and particularly objectionable when those amusements are not only harmless, but provide a good deal of enjoyment in the country.

It may be argued, very pertinently, that it is absolutely necessary in the stress and strain of modern industrial conditions that the people should be able to have harmless amusements and relaxations of this sort. The theatre, the cinema, bazaars, flower shows, and so on do no harm but all help in one direction or the other in promoting relaxation and giving employment, and they take the people's minds off their troubles and worries and the very complicated and harassing conditions of modern so-called civilisation. I therefore put it to the Committee that it is very objectionable to put obstacles in the way of the people's amusements, and particularly in respect to the cinema industry. Figures relating to this industry have been placed before every hon. Member, and I believe a clear majority of Members of this House gave a specific pledge at the time of their election to this Assembly that they would vote for the repeal of this duty. [HON. MEMBERS: "No."] A clear majority—[HON. MEMBERS: "No, no."]—of Members who were likely to be present when a Division was called when the Finance Bill was before the House. If hon. Members now say that they do not want to turn out the Government and that that, therefore, absolves them from their pledge to the electors, there may be something in that, but I do think that hon. Members will hardly be able to feel themselves absolved from their pledge unless we get some promise from the Government of a very large concession in regard to this particular tax.

The incidence of the tax is most unfair. It is disproportionate as between the more costly and the cheaper seats, so that the poorer classes and the children of the poorer classes have to pay more in proportion for their seats, and this proportion is very striking indeed. The tax is having an extremely injurious effect on the theatres, and still more on the cinema industry, which gives a good deal of employment, and in which a very large capital is invested. In my observations I refer specially to the North of England, and particularly to the County of Yorkshire, where cinema establishments are being forced to close at a very alarming rate. It may be said quite truly that this is not entirely because of the tax, but the industry themselves say that the repeal of the duty or some measure of concession would have a moral effect on the industry itself; it would enable them to get fresh capital, and, possibly, larger credit at the banks, and so to go on a little longer till a revival of trade and a return to prosperity is assured. Such a remission would also have an effect on the patrons themselves of these establishments. There is very much resentment amongst masses of people who go to the cinema and to the theatre, and the removal of the tax would probably lead to a direct increase in the patronage of these establishments for the reasons I have already given. Unless something is done, there is no doubt about it, from the statistics we have, that the cinema industry to a large extent, and the theatre, especially in the provinces, are faced with practical ruin.

I do not want to dwell upon the advantages that the cinema has brought in the way of providing a cheap and perfectly harmless amusement in the country districts. In some of these places a theatre could not be maintained, and the cinemas, both fixed and travelling, carry on with a good deal of difficulty. We hear a good deal about rural depopulation. If the cinemas are closed down in these communities it will not help to check the migration into the towns. I wish to say here that the right hon. Gentleman received a deputation of hon. Members with great courtesy and kindness and listened to what we had to say very patiently. I do hope what we said to him at the interview will have a great deal more effect than anything I can say now. I hope the fruits of that deputation and the one which he has received from the trade will be shown. I do not want to take any credit for this Clause because it is only by chance that I have moved it. This is not a party question, and this proposal is supported by a great many hon. Members in all parts of the House. I hope the Chancellor of the Exchequer will be able to see his way to give us some substantial relief in that direction. If he does not do so then I am prepared to vote for the total repeal of this duty, which I think will be the most advisable thing to do if one wishes to represent the greatest number of the people.

I think it will be convenient at this stage if I say a word or two about the Amendments on the Paper. With regard to those proposals which limit the scope of the duty I shall deal with each of them on their merits. As to those which deal with the rates, I propose that a general discussion should take place on this Clause. When we come to the first proposal providing for a scale, I will allow a speech by the Mover and by anyone else who has an alternative, but I could not allow a prolonged discussion. On this Clause, however, I will allow a general discussion to take place. This course has been adopted in regard to other new Clauses, I think with the general approval of the Committee, and I suggest that the same practice should take place now.

I think the Committee generally, Mr. Hope, will approve of your sugestion, but, seeing that the various new Clauses that you propose taking do not deal, with the scale, but with the application of it, do I understand that you would be prepared to pass over those proposals, to be followed by some direct new Clause dealing with the scale, and then go back to the others?

There is no possibility of coming back on the Order Paper. Those proposals dealing with the scope as against the rate will not be prejudiced. I will take the first of the new Clauses dealing with the scale, on the understanding that there shall not be any lengthy discussion, but simply a speech by the Mover and anyone who has an alternative.

I beg to second the Motion.

I am glad to see the Prime Minister in his place, because I remember when this Clause was first introduced how I opposed the whole of this system root and branch, and also how fairly he met me in the matter. A great deal of what was originally proposed at that time was modified. I remember how sympathetic he was to all the arguments on behalf of the theatrical industry, and I am not without hope that he may see his way even now to deal with this question in a generous spirit. I say at once that the part of the Entertainment Tax which I am attacking is the indoor part. I understand the Government might feel some difficulty in abandoning a duty that means the loss to the revenue of £11,000,000. I do not think I should be far wrong if I suggest that about £4,000,000 would be rather an excessive sum to take as the actual amount received by the Treasury from the indoor part of this duty. I have tried to get the figures from the officials here, but I have not been able to get them and I can only guess at them. I do not think I shall be far wrong in assuming that the figures are not more than £4,000,000 gross.

I am going to press upon the Prime Minister to give way on the indoor part of the duty now. There is a totally different case to be made out on this subject from that which can be made out in regard to cricket and football matches. No one, I am sure, would suspect me of any indifference to cricket and football, but that is a totally different case, because in the one case there is a large amount of capital involved and a graduated scale of seats, whereas at football and cricket matches there is far less expenditure, and the effect of this small duty on cricket and football entrances is in a totally different category from the case I am taking. I shall give the figures of about half-a-dozen of the leading theatres in London and also the figures of the British National Opera Company. I think the Chancellor of the Exchequer will readily admit that it is really of some advantage to the country that the first-class theatres in London should not be driven out of existence. He will also admit, I am sure, that those particular characteristics of English drama that make it in some ways the cleanest in the world are also worth protecting. I am quite sure that I shall take the House with me when I say that the interests of British music are certainly worth protecting. I am glad to see facing me the Government Chief Whip. I have hope that he may even tell for us on an occasion like this, because when asked his views in a perfectly safe constituency he said:

I am going to show that the Entertainments Duty on the theatres in London and the British National Opera Company is a tax of 15 per cent. on their gross receipts. This is simply shattering the theatres from top to bottom. [An HON. MEMBER: "They are all full!"]. How anybody could possibly make such an interruption I cannot understand. I challenge anyone in the Government or out of it to dispute the figures I am going to give. They wil show that is quite untrue. Not only have I got the figures of theatres, but I am myself personally interested in the matter. I have not the slightest wish to go into controversial matters, but these figures have been given to me by people interested in the business. I have myself, before now, run theatrical companies in the provinces, and know all about the expense, and what can be done. I am daily in receipt of figures with regard to plays which are running in the provinces, and others which are running in London, and when it is suggested that they are all doing well, especially in London, I reply that such a statement could only be made by persons totally ignorant of the facts.

I will give the Prime Minister the names of the theatres should he wish, but in this particular case I do not propose to supply the name to the House. I have in regard to that theatre the figures for six mouths, from the 1st January to the 9th June. These figures relate to one of the most celebrated theatres in this country and in the world. The gross takings in these 23 weeks were £27,669. The duty was £3,687, representing 13⅓ per cent. gross and 16 per cent. net. I will deal with the effect of that on the theatre, one of the finest in London and one of the best in the world. In 23 weeks it played to a loss of £2,864. If it had not been for the Entertainments Duty it would have played to a profit of £823. It is sometimes difficult for theatres to disclose to the public facts concerning their business, but I am prepared to give the Treasury the names and figures for this theatre and for another theatre, also one of the leading theatres in London. The average receipts for the theatre were £1,040 in a building holding £2,000.

I pass to the next theatre, which is also equally well known, but the name of which I do not propose to give to the House, although I will do so to the Prime Minister. The gross receipts were £27,465 from 9th September to 2nd December, 1922. The duty was £3,692, representing 13⅓ per cent. on the gross receipts and 15½ per cent. on the net receipts. Now I come to theatres of which I am at liberty to give the names. Let me take first the British National Opera Company. This company, starting at the beginning of the year, played for 14 weeks, four of which were in London. The gross receipts were £56,481. The duty amounted to £7,659, representing on the gross receipts 13·6 per cent., and on the net receipts 15·69 per cent.

When the hon. and learned Gentleman says "gross receipts," I take it he means the gross receipts plus the duty?

Yes, I mean the money actually received by the theatre. Anyone passing Covent Garden will find that the rates for seats are inclusive of the Government duty, which, apparently, people buying tickets are prepared to pay. It may be said that more people would attend the performances were it not for the duty, but, as a matter of fact, as far as the public go, presumably they intend to pay it. They do not pay it because they want to make a special contribution to the Treasury. The British National Opera Company started their Covent Garden season at the beginning of last December. They have a rule in that company of paying a minimum salary, and they deduct from the salaries of the artists 10 per cent. every week, and at the end of the tour—each tour stands on its own feet—if the tour has been a success the artists get the 10 per cent. in the form of deferred salary, but if it is a failure, that 10 per cent. is used to indemnify the shareholders for losses. In this particular case, owing to the enormous duty put upon the industry—in this case it was £7,659—there was a loss on the tour, and the artists had to pay the 10 per cent. of their salaries to indemnify the shareholders. One cannot get away from the fact that but for this enormous tax the loss would have been converted into a profit, but the loss has to be paid by the artists sacrificing their deferred pay. Most countries desirous to establish national opera companies have found it necessary to subsidise them. It has remained for this country not to subsidise but to tax them at a time when they are struggling to make an honourable existence in this country, and in such a way that they have to take 10 per cent. out of the small salaried of the artists in order to support the Government in its adventures. That is absolutely the fact. Passing on from the grand opera, let me take a lighter opera. I have here the figures given me of 12 weeks for light opera, or musical comedy, if that be preferred.

I thought I would find a sympathetic note for musical comedy. I shall be able to suit all tastes, even farce. I hope even to be able to appeal to the Prime Minister shortly by showing the fate of Cromwell at His Majesty's Treatre. The Winter Garden is exactly the same for figures. Gross receipts on 12 weeks, £66,639; tax, £8,452—[HON. MEMBERS: "What wad the rent?"]—I will talk about the rent in a moment—showing a tax on gross receipts of 13–27, or net 15·31. Why hon. Members should imagine that, because theatres are overloaded, they should also be overtaxed passes my comprehension.

I really do not understand what is the reason for this interruption. I have not yet spoken on the Budget, and I am only putting this case because I have tried to learn something about it, and apparently the hon. Gentleman has not. I understand that people like to have the names of the theatres, so let us take His Majesty's Theatre, and I will give the entire figures of the run of a play called East of Suez, written by an English dramatist and playgoer. Gross receipts for the whole run £58,675; tax £9,446; a tax on gross receipts of 16 per cent., or net 19 per cent. Now let me take Cromwell.

I should have thought it was to the interest of the drama that a play like Oliver Cromwell at His Majesty's Theatre should be allowed to exist. The gross receipts for a short period upon that play were £3,460, tax £551; a tax on gross receipts on that play of 16 per cent. I wonder what industry in the world could face such a thing. I think it is worth considering how it is possible for any industry to face gross receipts tax of 16 per cent. when I am told it is impossible for companies to face a tax on profits of 5 per cent. I commend that to the notice of the right hon. and gallant Gentleman the Parliamentary Secretary to the Treasury when he talks about the "earliest possible moment." I do not think when one makes pledges at election times of "earliest possible moments" one has the the right to put that moment off to any time that suits one, and when one finds that taxes of no equal moment are being taken off I think the "earliest possible moment" has arrived. I have given figures, and I am prepared with others, of two leading theatres here which show that the Entertainments Duty averages about 15 per cent. on gross receipts. Someone asked just now, "What about rents?" The Coalition Government, during the War, limited the building of theatres, but it never seemed to occur to them that if you limited the number of theatres you would force up the rents of the theatres that existed. I can give instances. I will give one, the Savoy Theatre, in which I used to take some interest.

I want to take just one instance because it shows how utterly unfair it is to keep on this tax with expenses rising in every way possible in the theatre. Let me take one instance only. Just before the War the Savoy Theatre was let at under £80 a week. In the course of the War, and quite recently, it let at between £400 and £500 a week. Anyone who knows anything about theatres in London will tell you that whereas before the War you could run a play for £800 and a good manager calculated that £100 per performance made good business at the present time, it will take you £1,200 to cover your expenses when only £800 was necessary before the War. As a matter of fact, in these East of Suez figures at His Majesty's Theatre, which is very expensive to run, the gross receipts there, apart from tax, are nearly £2,000 a week, and yet there was a loss. Rentals are so enormous. The price of timber is very high, canvas is three or four times what is used to be, lighting is very expensive, wages are very expensive, and musicians are far more expensive. Roughly speaking, you have to face the fact that, taking these figures, whereas they could have got out before the War for £800 a week to-day it costs nearly £1,200, in that theatre where there were weekly receipts averaging £l,040 there was a loss, and that is one of the lowest rented. There are four or five theatres where there are no profit rentals. There is the Playhouse, Wyndham's, the New, the Criterion, and the Haymarket. Most of the others are profit rentals, and there are very high rents they have to struggle against. The figures of one of the most glaring cases I gave is a theatre where there is no profit rental and everything is on the lowest possible basis, yet even there you cannot make a profit much under £l,200 a week. What right have you to put on this enormous tax? You may say they have taxes in Continental countries, but let me say that they do not have as high a tax and let me also say that they do not have the same sort of theatre. If you cannot knock down rents, and you cannot do that without getting a Government that wishes to; if you cannot knock down the price of canvas, timber, light, wages—and few want to—and rates, you have to knock down something. [ Laughter. ] In this country, unlike almost every Continental country, we avoid one pitfall in our theatre, and the management pay for the dresses and the whole production. It is a very important point, and if anyone has gone into the question of theatres in other countries they will find that very considerable evils flow from the fact that in some Continental countries the cost of the dresses is upon the artists. [ Laughter. ]

I really think the hon. and learned Member (Mr. Hemmerde) is entitled to a hearing without these interruptions.

It seems to me amazing, not only that people should be so ignorant of the entertainment industry in this country, but that they should be so dead to all sense of the protection of women on the stage that when I am coming to a thing which my experience of foreign countries, and that of many other Members of the House, causes me to know is a glaring evil, there should be these interruptions. In this country, at least, young artists keep their self-respect, not only in the legitimate theatres and the straight drama houses, but in the music comedy houses and the light opera houses, because you have a system estab- lished that the management put on the production and no one has to get a part in the show owing to some rich protector who can dress her for the part. [ Interruption. ] I do not believe this is a House where one should not be able to say the truth, and I know what I am talking about when I say that that is a real danger. If you will not knock down expenses which are illegitimate expenses upon the stage, such as this tax, you are not only going to do harm to the industry, but you are going to do harm to the whole moral of an art. Why should we in the House of Commons be asked to consent to a system under which you tax to the extent of 15 per cent. the gross receipts of a business which is also an art, when you are so squeamish that you cannot tax the profits of a corporation, which is not an ant and has nothing to do with art, to the extent of 5 per cent. on its profits? Is it the fact that the voice of big business carries so much further than the voice of the arts in this country? Is it the fact that the Prime Minister would rather tax "Oliver Cromwell" off the boards in a month than put somewhat heavier taxes upon things which are more able to bear them?

It is not my business to arrange the Budget; it is the right hon. Gentleman's business; but when it comes to a matter of £3,000,000 upon a Budget of over £900,000,000, is it really enough to say that he must have the money? That is the argument of the criminal, of the embezzler—"We must have the money." The question is, Is it just? What the Government have to answer is this perfectly simple question: If it is not just to tax the profits of a corporation, how does it become just to tax the profits of theatrical corporations upon their gross receipts? It is said that it is merely making these people collectors of the tax for the Government. That is an argument which is sometimes put forward, and, possibly, for a short period during the War, it might have been true—as to whether it was decent or not was another matter—because during the War there was such a rush of people home from the Front, with their relatives and friends, who might, perhaps, never see them again, that the theatre never had such a boom, and possibly then the theatres were so full that the Government might have got their tax and made the theatres to some extent their collecting agents. But that is not so now. At the present time, the theatre is not the collector of the tax for the Government; it is actually paying this tax out of its own receipts. I gave a case just now where the singers in an opera actually had to contribute out of their salaries to keep the opera going, while the Government marched off with nearly £10,000 on one tour.

Anyone who has anything to do with the theatre in London will admit that the effect of the tax has been to drive people who would have gone to the stalls into the dress circle, to drive people who would have gone into the dress circle to some cheaper seats, and so on right through. What is the effect upon the theatre? The Government do not seem to realise that there is a definite sum that people of ordinary means can spend in amusements. If you increase the price by a tax, they can only go fewer times, and that is going to hit the theatre. I do not care which way you look at it. If the price of seats went down, owing to the removal of the tax, more people would go. If the price were left as it was, then the theatres would be getting the whole of the receipts and would be enabled to keep going, although their audiences would be smaller. I, personally, do not believe that for some time the whole benefit of the tax would be given to the playgoer. I think that for some time—partly owing to the fact that this War tax has been kept on for so long—the theatre will have to struggle to get on its feet again. I have been told by one manager that, in the case of his theatre, which is exceptionally placed because the rental is low, they would be able at once to bring their prices down, and I am sure that the example they showed would make a very great difference all through London. If you are going to take the tax off and the price is reduced, more people will go. If, on the other hand, you take it off and the price is kept up, at any rate the theatre can become a paying concern.

That is the case, as I put it, for the London theatre, and the case for the provincial theatre is precisely the same, because, although you do not reach the very high limits of the 1s. 6d. tax in many provincial theatres, yet you have a 1s. or, at any rate, a 9d. tax, and very great harm is done. I have been told by pro- vincial managers that their experience is exactly the same as the experience in London. If you stand by the box office, you will find people calculating whether they shall take a poorer seat than they used to take, and the people in the theatre will tell you that they notice their old patrons, in hundreds of cases, taking a type of seat a little worse than they used to take. As regards the lower scale, I am only going to say a few words, because I believe several hon. Members want to speak upon this question, and particularly upon the lower scale. On the 1s., or 2s., or 3s. scale, the tax is obviously quite inequitable compared with the higher figures, but I have risen particularly, and I admit it, to put the case of the higher priced seats, because, if this tax is to be kept on, it will strike at the root of the whole future of the British theatre. After all, the British theatre means London. Apart from recent developments in Birmingham, and to a smaller extent in Liverpool, the fact has to be faced that London means the theatre of this country. [HON. MEMBERS: "No!"] I repeat that on the whole, apart from a few experiments, London means the theatre of this country. The theatres in the Provinces, in 19 cases out of 20, are filled with second companies of London successes, and occasionally with first companies.

London is also the seat of music in this country. [HON. MEMBERS: "No!"] Yes, to a very great extent. I admit the claims of Birmingham or Manchester to some extent, and also Glasgow and some other places, as rivals of London, but I make no apology for stating that the London theatre is the real centre in this matter, because London to a great extent sets the theatrical tone in this country. I shall be delighted when I find that that is not the case, but at the moment it is the case, and even if it were not, my argument would be equally forcible, because provincial managers find exactly the same thing occurring, with their slightly lower-priced seats, as occurs in London. As regards the cinema, I do not attach the same importance to it as some do, although even there you are doing a tremendous lot to penalise an industry that is already finding it difficult to compete with American films, and you want to do everything you possibly can to put that industry on its feet. I am not prepared with figures regarding that industry, but I know that to a great extent the industry has been suffering from overbuilding. You cannot, however, put it all on to that. Here in London, particularly, you cannot answer the attack upon the tax by saying that there is any other cause for this great slump in theatres at the present time. If there is a slump in theatres, how is a 15 per cent. tax on the gross receipts to be justified? If there is not a slump in theatres, how can you deal with these figures which I am able to give, and which I could give, if it were not wearying the Committee, for practically every theatre in London? I have taken this matter up without any interest whatever. The managers have not given me these figures. Only last week I went round and got them for myself from theatres where I knew the managements. They corroborated what I already believed to be the case. I believe the Prime Minister would confer a great boon on the theatrical profession if he would even at this hour reconsider this tax in its lower stages, not merely in the form of its graduation, but in its essential features. It was brought in as a. War tax and I remember when it was put forward its greatest justification was that it was to be a War tax. The piping days for the theatre that the War brought are past. We are really in very difficult times, and many a management is doing everything it possibly can to keep going under circumstances of almost intolerable strain, and when you find that really leading theatres which for many years have been successfully carried on are in this position, I suggest that there is a much stronger case against the tax than the Prime Minister has up to this time allowed. I know deputations have been to the Government upon it. I was not on any of those deputations, and I do not know exactly what views they put forward. I only speak as one who has for years followed the theatre and believe the theatre is a most potent force in education and a tremendous instrument for the peaceful development for the people of the country.

I cannot understand how some hon. Members opposite can look upon an appeal for the theatre and music almost in a flippant spirit. It means so much to satisfy all these ideals in the people and to raise the whole tone of the theatre that it becomes a matter of really great national importance for which I plead. I do not think I am putting it too high when I say that in this country, the dramatic literature of which is second to none and the moral of whose stage stands almost alone, the great public need demands that the Government should show more enlightenment upon this question. Every young singer who has to give a concert has to pay this preposterous tax. Every young artist, striving to get an audience and to get a hearing, has to pay this preposterous tax because, in this case, it is not the people who flock to hear them, it is the few who come, and the few who come much prefer the young singer to pay. You are stifling the theatre by this tax, and all for a trumpery sum that is small in itself and is contemptible in the light of the pledges the Government gave when this was introduced, and when you find pledges given by well-known members of the Conservative party that the tax ought to be abolished, what better time than now? If you come to the rescue of this struggling profession now you may save many a management from going out of management. There is no body of men and women who give their services more whole-heartedly to the poor and to charity and to good work than these people have done. They have given ungrudgingly of the best that is in them. If you close down these shows by this ruinous tax you are driving out of employment men and women who have given ungrudgingly for years to help the poor and to help those in distress. For this deserving industry I appeal. For this industry, of which we ought to be proud, I appeal. I appeal to the Government, above all things, not to penalise British music. We are striving without any subsidy, like foreign countries have, to make a British opera worthy of the name. I ask you not to do that upon the reduced salaries of the unfortunate singers, but to say this tax has served its part, and now, if we want to save the theatre and do our best for British music, let it go once and for all. I have spoken almost entirely upon the indoor part of the tax because I feel so strongly that it is wrong from end to end. I opposed it in 1916 when it was brought it, and I foretold many of the evils which have followed. I appeal to the Prime Minister to do something for the relief of this struggling enterprise.

I understand your ruling, Sir, to be that if an hon. Member has an amendment on the Paper, he may discuss the merits of it now. With this in view, I rise to support the Amendment in my name because it is the only one that is supported as a whole by the entire industry engaged in the provision of entertainment. It is the same Amendment that I moved last year. There is no other Amendment on the Paper of which it can be said the entire entertainment industry, including West End theatres, after consultation have agreed.

I hope the hon. and gallant Gentleman will allow me to question that. I have a paper in my hand which shows that the entire entertainment industry first and foremost demand the entire abolition, and only if that is refused do they support the other. I strongly protest against the contrary being said by people who are not connected with the theatre, but rather with: music halls and cinemas.

I accept the hon. and learned Gentleman's remark and I preface my remarks by saying I am speaking on my Amendment, and I will proceed to justify the words I have used. May I first of all repeat a statement with, which most hon. Members are familiar but which in my opinion needs emphasis. It was passed by bodies representing the following associations, the Society of West End Managers, the Theatrical Managers' Association, the Entertainments Protection Association, the Cinematograph Exhibitors of Great Britain and Ireland, the Association of Touring Managers, the Provincial Managers' Association, as representing proprietors. It was passed by the Actors' Association, the Variety Artistes' Federation, and the Musicians' Unions as representing performers and it was also passed by the National Association of Theatrical Employés as representing the working staff. I do not think there is anyone else who is really entitled to speak. You may hear further objections to this particular scale, but those gentlemen speak only for themselves, and you can assess their views at their proper value when you hear what I have to tell you. You may also hear that some Members will demand the total abolition of this tax. I say candidly that I am a total abolitionist myself, but I realise that the Chancellor cannot now get rid altogether of this War Tax, and therefore, I ask for this modest concession for this year in the hope that next year we shall see the tax removed altogether. This is the view of the industry and here is the Resolution passed by all the bodies for whom I speak to-night:

As has been previously said, you place no similar tax on any other industry in the country. This scheme is intended to save innumerable places of entertainment which are on the verge of bankruptcy. Read the "London Gazette," and you will realise the terrible position of the cinema industry in this country to-day. Let me say that I merely voice the views of an industry with which I was once connected. I have no interest in it to-day whatever, though maybe—and I say it with all modesty—I am regarded as possessing some expert knowledge about it. I should like to quote what I said last year:

The annual revenue returns from the tax have fallen, and they would have fallen ever so much more had it not been for open-air sports, which, though they suffer also from the tax, are not really an industry like the provision of indoor entertainment Many a time the Chancellor of the Exchequer has been pressed to give separate returns of the revenue from indoor entertainments and outdoor sports, but he has always declined to do so. It can be done, however, and if it were done it would show the disastrous position of the indoor industry for which I plead to-night. I venture respectfully to query the Customs estimate of the loss by the suggested reduction of revenue. That estimate allows nothing for any increased entertainment going, which, I hold, will follow the reduction in prices. It has been my personal experience in large manufacturing towns, such as Manchester, Birmingham, Sheffield and Glasgow, when trade was bad owing to industrial depression, strikes, or any similar occurrences, that the sovereign remedy was to reduce your prices of admission. Once I did that, my experience was that the attendance was not only doubled, but trebled and quadrupled, and no loss was sustained. I believe, if the Chancellor of the Exchequer can see his way to give this reduction for which I ask, it will have the same effect. I just mention this because the managers have agreed to hand on any reduction they may get direct to the public.

10.0 P.M.

There would also be an increase in the revenue from Income Tax with a more prosperous industry, and there would be less to pay in respect of unemployment doles for stage hands, and other allied trades, which are employed by the entertainment industry when they can afford it. Beside that, the heavy tax is unfair to the public, who need some entertainment and relaxation. The Government has always admitted this in times of stress. I remember, in the early days of the War, when bad news was filtering through to the various provincial towns, that, after a meeting of the theatrical and cinema proprietors, which had decided owing to bad trade to close down, a message came from the authorities that they were on no account to close down, but to keep the houses open, and so keep people off the streets, as they would be easier to deal with. The Government then recognised that the theatres were of some use.

All we ask for is some alleviation of this tax. It hampers all entertainment life. You have heard, from the previous speaker, the result to opera; and I can quote one instance of what occurred in order to show the influence of this tax on the drama. A play was produced in the West End of London some time ago, called The Immortal Hour. It was produced quite modestly, and though it was perhaps one of best instances of latter day playwriting, it entailed a loss to the producer of over £11,000. I think it is hard that although the producer lost £11,000, the Government gained £4,000 in Entertainment Tax during that short time. As it stands, the entertainment caterers cannot provide the accommodation they would like for the public, and repairs, renewals, and renovations are impossible. Yet, there is a fixed intention, in spite of all this, as I have said, to hand on any reduction of the tax to the public. Profits are made by very small margins in many towns. One penny on the price of gallery seats may fill or empty a gallery.

Last year I had a doleful but true story to tell; and this year the colours are even more sombre and depressing. The agitation, which was in evidence at the General Election, when hon. Members showed so much sympathy with the cause I am pleading to-night, is to the front again, and I can assure you, Sir, it is a sincere agitation. It is not selfish, unless you call the instinct of self-preservation selfish. It is sincere, and it is urged in the public interest as well as the interest of those who indirectly benefit by it, because any remission of the tax will be handed down to the public, and the proprietors have pledged themselves to that. If we are going to continue the tax, let us have the principle extended all round, so that the public will pay on all articles and not merely on a selected few a tax to the State. Entertainment is almost as necessary in these days as physical exercise. In any case, I claim that the concession in my scale is just to the industry, which, during the War, suffered by this specialised taxation, and which almost alone is subject to it to-day, since you cannot, even if you wish, pass on the full measure of the extra burden to the public, as you can in the case of beer and spirits. I claim it is demanded in the public interest in respect to mental relaxation and educational profit. I claim it as being not unfair to the State which is well considered by this very modest proposal. Year by year, during and since the War, this industry has borne this grievous burden. I move my amendment in the confident belief that the justice of this measure of assistance will appeal to all.

I beg to support the suggestion in the Amendment of the hon. Member for Ashton-under-Lyne (Sir W. de Frece). I believe every word he has said is true, but there is one thing he did not mention. He did not mention the tax on the travelling showman. There are 70,000 showmen in England, and I may tell this House that 70 per cent. of these men volunteered to go across to fight for our country during the War. I may say that 2,000 of them laid down their lives after fighting for a good cause. When our men came back they found there was a tax on their shows, and they had to charge 2d. for their shows as there was a tax of ½d. As you will remember, there was plenty of money in the country during 1920 and up to 1921. From that time onwards there was a slump in the business. These people take their money from the poorest classes of the country who cannot go to the seaside or other resorts. They fetch their amusements to the doors of these people. They bring them to the farm labourer in the countryside. They go to the fairs, but they are now in a state of semi-starvation. I ask the Committee to consider this and to abolish the ½d. tax on these shows. While you are taxing these showmen you are taxing the poor people who cannot afford this money. It is all very well to talk about luxury taxes and so forth, but these working people, such as farm labourers getting 25s. a week, cannot possibly pay this tax. If this tax were abolished I can assure you the showman's charges would come back to the 1d. I may tell you what was the commencement of our entertainments and theatres. All these wonderful palaces and theatres which we now see commenced from the showmen. They commenced from the mountebanks who performed in the streets and in fields and went round collecting. Then they came to have booths, then they had the barnstormers, and then the theatres. You know that at one time the tragedian was regarded as a rogue and a vagabond. Now they have Sirs and other handles to their names. What I want this House to consider is that these poor showmen have done their little bit for the country. They lent the Government 2,000 traction engines and automobiles of every description. While the men were away at the War the boys and old men worked these traction engines for the Government. They raised £20,000 for War charities. They sent 15 or 16 motor ambulances to different parts of the country, and I do say that this House should consider that. I would not. speak as I am doing if I were not speaking the truth. These men are now being, brought to beggary and starvation. I would like to quote to you from a speech delivered by Colonel R. Murray, commanding the West Scottish Infantry. In opening a War memorial, I think it was last Saturday week, he said he wished to refer to the Showman's Guild. He said:

"Few sections of the community rendered so much service in proportion to their numbers. No fewer than 70 per cent. of your male membership served in the fighting ranks, while the other 30 per cent., who were medically and otherwise unfit for service, rendered useful service by driving traction engines of which no fewer than 2,000 were commandeered for War purposes. Many of the girls sat on the seats of the engines. The Guilds raised £60,000"—

I said £20,000, but what I am quoting is in print—

"for War charities. They gave 12 motor ambulances and contributed thousands of pounds to Bed Cross and other objects. This is a record of which any class might well be proud."

I am only asking this House to let our people have an opportunity of living. The position in which they stand to-day is very precarious. I may tell you that I am interested in cinemas and I can say that three parts of the cinematograph industry is in bankruptcy and there are hundreds of houses ready to close up. I would ask the House to consider carefully the question of the smaller tax which our showmen have to pay.

I would like to say in regard to what has been stated by the Parliamentary Secretary to the Treasury, the hon. Member for Holborn (Sir J. Remnant), and others, that I gave no pledge whatsoever in regard to the Entertainments Duty. I refused to do so, because I thought that it was improper for the cinema industry to attempt to intimidate any Member of this House to support one interest perhaps to the detriment of other interests. So that when I was speaking on this subject quite recently I think the Committee will agree that I was speaking without bias. I would like to congratulate the hon. and learned Member for Crewe (Mr. Hemmerde) on the admirable speech he made, and if he could write another as admirable a play I believe he would restore the prospects of the theatrical world. I should like to make an appeal to the Prime Minister as Chancellor of the Exchequer to consider doing something for the entertainment industry, because, while I will not bore the Committee by going into details, I can assure the Committee that the picture that has been painted by the hon. and learned Member for Crewe (Mr. Hemmerde) and the hon. Member for Ashton-under-Lyne (Sir W. de Frece) has not been exaggerated. I will read, in summarised form, the figures of 36 typical theatres in London and the provinces for the last three years. In 1920, the admissions were 26,000,000, and the receipts £1,745,000. In 1921, the admissions were 21,000,000 and the receipts £1,487,000. In 1922 the admissions were 19,583,000 and the receipts £1,266,000, so that in admissions there has been a falling off of 5,000,000 in 1921 compared with 1920, and a further fall of 2,000,000 in 1922 compared with 1921, while in money there has been a reduction in 1921 compared with 1920 of £250,000, or an average of £7,000 per theatre, and in 1922 compared with 1921 there was a further reduction of £220,000 or £6,000 per theatre.

A great appeal has been made that if the Entertainments Duty was taken off it would restore prosperity to the theatres and music halls. I do not think that. I do not think the difference between solvency and bankruptcy is represented by the Entertainments Duty, and anyone who says that has no knowledge of the business. What I do think is that if there could be a remission of part of the Entertainments Duty it would give new hope and new encouragement to those who are engaged in it to struggle on until we get into better time. Unlike many businesses, the entertainment business has not had an opportunity of building up great reserves. During the time when the theatres were full and people were saying, "Where can we go?" instead of saying, as they do now, "Where shall we go?" the theatre had only limited holding capacity. The prices of materials, the price of labour, I am glad to say, and of every other commodity connected with the theatre, went up by leaps and bounds, but the holding capacity of the theatre did not increase. Therefore, the theatre people were not able to put anything by for the bad times as other industries were able to do, and as a result the other industries are now bearing their losses out of their reserves. If the entertainment industry does not get some relief many of the places will close down, and a very large number of people will be thrown out of work, not only in the entertainment industry but in many contributory trades, and these people will come back as a charge upon the State in one form or another. I therefore appeal to the Chancellor of the Exchequer to make some remission.

The hon. Member for Crewe appealed on behalf of the West End theatres, and the hon. Member for Ashton-under-Lyne appealed on behalf of the cinemas, and the seats below 3s, and there arose a very natural difference between the appeals of the two hon. Members. I do not think that there is. What I understand is that the whole of the entertainment industry wanted, very rightly, the whole of the tax remitted. I understand then that the cinematograph industry, which is very powerful in this country said to the other members of the entertainment world: "We will not support you unless you support us entirely for a remission up to 3s.," and the theatres and music halls, not being as well organised said: "If we cannot have the whole we will take what the cinemas get." But I suggest to the Committee that it is not quite fair merely to give a remission to those below 3s. While I have every sympathy with the proposal to have the prices lower for the cheaper consumers, yet it would be impossible to provide an entertainment at the lower prices if the more expensive seats are not filled. In fact, the higher prices are a subsidy, to some extent, to the lower-priced seats.

There is another point. The cinema industry, to a very large extent, imports from America the goods which it sells. It employs in everything appertaining to the display a limited number of people as compared with the theatre proper which spends a very large amount of money on producing and on material and labour of all kinds, and if the theatre is not going to succeed then you are going to put out of work large numbers of people in various trades who depend upon the theatre for a livelihood. I do not believe that it is practicable for the Chancellor of the Exchequer to give us total abolition this year, and I do not go for total abolition, but I would like the Chancellor of the Exchequer to say the maximum amount which he could afford to give the entertainment industry, and then let the different sections settle the division among themselves.

I have been asked on several occasions to undertake a certain kind of work in connection with this matter, and I have tried as far as I can to ascertain the general opinion of the House. We on these benches favour total abolition of this tax without even a request from the entertainment world. We agreed during the General Election that, in our judgment, this is a particularly vicious tax. In reference to the Clause that is down in the name of my hon. Friend in favour of total abolition and the Clause of my hon. Friend the Member for Ashton-under-Lyne (Sir W. de Frece) I would be glad to see two distinct Divisions taken, if a Division occurs, on the Motion of my hon. Friend opposite. I am sorry that the hon. Member for Balham (Sir A. Butt) has introduced the question of difference between the varying branches of the entertainment world. I shall have to say something about that when the election comes on, as he happens to be my own Member. But it is scarcely correct to say that there is any division in this matter. It is not accurate to say that the cinema industry, being powerful, impressed their power upon the other section to agree to a particular point. As a matter of fact, I want to compliment the West End managers and theatrical producers on the part they have taken, especially in view of the fact that I am out for total abolition. There are two points worthy of consideration which I shall try to put before the Committee, but first I propose to quote a very few figures showing the bad effect of the duty on the industry generally. I have here the figures relating to 12 houses in Leeds for the last five weeks of the financial year. During those weeks the receipts were £14,389 7s. 6d, and the expenditure £13,958 12s. 8d. The total profits were £430 14s. 1Od. on a capital of £150,000. Multiplying those figures so as to apply them to a whole year, it will be seen that on that capital of £150,000 there is less than 3 per cent. profit and, quite clearly, the business cannot go on like that. During those five weeks they took in Entertainments Duty for the Government £3,658, exclusive of their own receipts—and I cannot understand the remarks of an hon. Member who has spoken already referring to this item being inclusive. Even the papers supporting the Government in the country are taking very strong exception to the duty. I have here an article, which I do not propose to quote, but which any hon. Member can see, from the "Yorkshire Evening Post," a reputable old Tory paper, and it is pointed out in the headlines that the cinema industry has been spoiled, and that 71 Yorkshire halls have been closed by the burden of the Entertainments Duty. As a matter of fact, I understand that is not quite correct. I am informed that 42 have gone into liquidation, 10 are entirely closed and 19 have changed hands—the 71 houses referred to have been affected in those different ways.

The first point I put is that the Prime Minister is not getting out of the duty what he thinks he is getting. The revenue from the duty, owing to its effect on the industry, is diminishing. In 1921 the return from the duty was £11,500,000, but it has gone down year after year, and now the total that the Government may possibly get will be £9,500,000. When we consider what is being lost in Income Tax and in the turnover which the firms would have if they were prosperous, it means that the Government does not get anything near that amount, but must be losing a considerable sum, in regard to theatres, cinemas and music-halls as has been indicated by the hon. Member for Balham. The next point I wish to put to the Committee, and a point which I wish to stress, is the danger of keeping on this duty having regard to the state of feeling in the country. Under your social system the people who build ships, lay railroads, work in mills and factories and handle transport are condemned to live in drab, grey streets, in many cases in slums, and in those homes discontent is seething and is being talked of between father and children. By this duty you are helping to close a safety valve and preventing people from going to the cinema which is a very bad business for the State. It may be asked, how does it affect the State? A man with a family may be in the habit of going to 5d. seats in the cinema. With the imposition of the duty he has to pay 8d. for those seats, and he should not be asked to pay that amount. It is very certain that he cannot do it, and so you allow this discontent to seethe.

The way out of the difficulty is that you want to prevent that discontent expressing itself in the open, and apparently that is the view taken on the opposite side of the Committee. On public platforms and in this House they are, constantly talking about this danger of the outburst of discontent among the working people, and they are constantly warning the country of the danger of the extremist propaganda. The best antidote is to take this tax off and let the people get inside the music-halls and the theatres, if they can afford it, but certainly inside the cinemas. We think this is a vicious tax. It is a mean tax on the people's enjoyment, and, therefore, we want its complete abolition. However, as ordinary men of the world, who try to take a common-sense, level-headed view of things, we know the Government will put on their Whips, because of the financial stringency in the country, but there are over 400 Members of this House who did give pledges on this matter. A large number of them gave definite pledges for abolition, and we want a clear issue on the question of abolition, and then, when the other Clause comes along, I am fairly certain that, having expressed our view on the main point with which we are concerned, we shall go into the Lobby to support the other Clause.

This is the third speech I have had the privilege of making to-day. In the first one I was able to announce a concession, which was received with favour, and if this speech be received with half the favour accorded to the first one, I shall be satisfied. I am not to-night in a position to announce a concession to those who have been arguing the question of this tax, but I am going to appeal to a body, which, I am sure, is the best body to which an Englishman can appeal, a jury of his fellow-countrymen, and unless I can convince the Members of this Committee that the arguments for the abolition or the alteration of this tax are not well founded, I shall expect to be beaten in the Lobby to-night; but if I can convince the hon. Members who are present now that really and truly those arguments are not sound, and that the ills from which the entertainments industry is suffering at the present time have really nothing to do with the tax, I shall ask hon. Members on all sides to support the Government in this matter.

I believe it is a case where the truth had better come out, after all the appeals that have been made and the arguments that have been adduced during the last few months. I had the privilege of receiving a deputation from several hon. Members. I heard all that they had to say, and I tried to put myself at their point of view, but I must confess that I was not convinced, and I hope that when I have finished, the Committee will not be convinced as to the harmful incidence of this tax. There are two schools of thought on this question—one the school of abolition, and the other the school of reduction. I want to explain to the Committee that this tax has been on during all the period about which we have been hearing, say, the last three or four years. It was put on in 1916, increased in 1917, and readjusted in 1918. We had some very remarkable figures a minute or two ago from my hon. Friend the Member for Balham (Sir A. Butt), showing how 36 theatres had been ruined, or half-ruined, during the last three years, that their takings had fallen from £1,700,000 in 1920 to £1,266,000 last year. The tax was the same in both years.

On those theatres. The tax was the same, so if there is trouble on account of the tax in 1922, why was not there the same trouble in 1920 when the theatres made nearly half a million more than they took in 1922? The duty is now producing about 9£ million pounds. In 1921–22 it produced over 11 millions. Does the hon. and gallant Gentleman the Member for South East Leeds (Captain O'Grady) quite appreciate the fact that there is a difference now in respect to Ireland; apart from that the tax is about the same, and it is estimated to produce in Great Britain at about the same rate as the previous year.

This duty was put on in the first instance as a war tax. It was put on as a tax in order that—quite frankly—all members of the community should share in the cost of the War, and should share it, not on necessities, but on what—I think I may say without offence—is a luxury, whether it be small-priced or larger-priced. The repeal of this duty would be absolutely unjustifiable so long as we keep the tax on beer, sugar, tea, and other things. We have to view, and review, taxation as a whole, and the Government has to find out what are the taxes which are pressing hardest upon the people, and on those taxes to make, if possible, the remissions the Government have done. Let us consider the arguments that have been put before the Committee to-night in respect to this Entertainment Duty. Take those put forward by the hon. and learned Member for Crewe (Mr. Hemmerde). He gave us a large number of figures, what he called gross figures, of the takings at various theatres. He endeavoured to put it that on the payment of the tax there was a loss, and that if the tax had not been paid there would have been a profit. But what right has the hon. and learned Member to put the tax on one side only and to show a loss instead of, as he suggests, a profit? He should put the tax on both sides of the accounts, on the receipts as well as on the expenditure, and the loss would have been exactly the same. We all remember that prior to the imposition of this tax what the prices of seats were. Take a half-guinea stall, there is 1s. 6d. paid on that. That is not lost by the theatre; it is collected by the theatre for His Majesty's Government. I have in my hand here a theatre ticket—I do not know that I need not say for what theatre: it is for the Haymarket Theatre. The ticket is marked four guineas and it is added that the tax on it is 12s. We know perfectly well that if any of us buy a ticket at four guineas we are not paying the 12s. into the theatre exchequer but paying it there on behalf of His Majesty's Government.

What I said was that a person paying that £4 16s. for a theatre ticket would be simply paying a share to the Government.

The hon. Member knows something about theatres. Is he going to tell me that before the duty was imposed that a box at any theatre coat £4 16s.?

Yes, certainly, and I will tell the right hon. Gentleman the name of the theatre, if he likes.

Or is he going to tell me there was a theatre where this additional charge would be paid? Is the hon. and learned Member for Crewe going to tell me that if I take the 12s. tax off this box they are still going to charge me £4 16s.?

As a matter of fact, I could hand the right hon. Gentleman letters showing what one manager would do and what another would do. I do not say that, having regard to the cost of materials, rent and everything else, they would be able to take the whole of the tax off at first, but I could hand the right hon. Gentleman a letter from the manager of the Haymarket Theatre which would tell him what would happen when the tax is taken off.

We all heard the speech of the hon. and learned Gentleman, and it was to the effect that owing to the high price of materials and wages the public could not pay the higher prices charged for admission. I suppose he would say that a large part of it would go to reducing the price of the higher seats, but it would not benefit the consumer. It would simply remove the duty from the Government and put it into the pockets of the theatre owners.

I would like to assure the right hon. Gentleman that if the tax were taken off, the public and the consumer would get the benefit and so would the whole industry.

I cannot judge when doctors differ, and the hon. Member for Balham has just knocked the bottom out of the argument of my hon. and learned Friend. I will take the statement made last year by Mr. New-bould, who represented officially the cinema trade. He was an active protagonist of the cinema trade. He said in this House:

"The right hon. Gentleman says that the public pay the duty, but long ago the public, owing to industrial depression, lower wages, and unemployment passed this duty on to us."

Therefore, it is lower wages, unemployment and trade depression that is getting theatres into this state. Mr. Newbould further said:

"There Is only one possible end and it is near and in sight. This is the most flagrant case of modern times of over-taxation destroying an industry."

If it is true that over-taxation is destroying this industry and that the end is in sight, then there is a claim on the Government to reduce this duty in order that the industry should not be destroyed. Here are the figures. On the 1st April this year there was an increase in the seating capacity of music halls of 1,200. They increased the seating accommodation of cinemas by 66,500 and 55 cinema houses were reconstructed last year with an increased seating accommodation. Therefore a trade which was said to be nearly dead could afford to provide 66,000 new seats last year and reconstruct 55 existing cinema houses.

The hon. and gallant Member argues that the cinema industry has done this out of savings of previous years in a trade that was coming to an end by over-taxation.

Cinemas with 62,000 seats were closed during the year, but new seats to the number of 128,000 were provided in the same period. Does the Committee know that, on the average, every man, woman and child in this country goes to the cinema once a week in this country? There are 40,000,000 people who go to cinemas every week. The truth is that not the Entertainments Duty, but bad trade, depression, lower wages which prevent the working man having so much money to spend on luxuries; unnecessary halls, and the enormous sums paid for American films—as well as the out-of-all proportion salaries paid to artists, are responsible for the trouble, and really the reduction of this tax would be in favour of Fatty Arbuckle and his friends. I noticed in yesterday's paper that one of our well-known actors has just been engaged by a cinema company at £700 per week for a period, I believe, of ten years—a salary equal to that of seven Secretaries of State, and yet hon. Members come here and say the cinema trade is being destroyed by this tax. My hon. Friend quoted a Yorkshire paper just now. Let me quote another. The "Sheffield Daily Telegraph" on 5th March last, in dealing with this question, said:

"The entertainment caterers are going through bad times just now and are demanding relief from their own special tax, but we doubt whether that will help them. There are over 100 shows in Sheffield every day and more on some days. The competition is very keen. During next week there will be 804 entertainments held in Sheffield. Is there really any wonder that they should not pay, especially in a time of wide depression?"

There was a discussion in January of this year by the North Western Cinematographers' Association upon their troubles, and one of their speakers put his finger on the spot, namely, the price paid for the films. He said:

"They all knew of cases of super-films and so-called super-films where exhibitors in competition had paid prices which could not possibly leave them any margin of profit."

If the cinema theatre proprietors choose to pay prices which, in the opinion of their own leaders, cannot leave them a profit, they need not come to me and ask me to reduce taxation. I will quote once more from "The Bioscope "of the 1st February. There was a meeting, again in Leeds, of the New Century Pictures:

"Mr. Sidney Carter, the chairman, moved the annual report, and recommended a dividend of 5 per cent. for the six months, making, with the 5 per cent. already paid, 10 per cent. for the year."

They are not doing so badly in Leeds after all.

Again Mr. Carter put his finger on the spot—

"Recently we have been asked to pay £1,250 for an ordinary good film for a fortnight's run, but the same renter came down to £750."

The paper quoted remarks that that theatre was in good business hands, and that the result was a profit paid. I really think I have put to the Committee quite plainly that the real trouble in the cinema, or the theatre industry is not the duty. It is the large rise in the cost of material, the large amount of over-speculation in the cinema world, and the large number of houses that have been built.

I am dealing with the cinema, and I ask, after the facts I have given, whether the Committee thinks it right to take a tax of £9,000,000 off the entertainment industry in accordance with the Amendment on the Paper of the hon. Member for Ashton-under-Lyne, which would mean a reduction of £2,000,000 this year. Do hon. Members think it better to restore a portion of the Beer Duty or to increase the Income Tax or to put some other tax on rather than this one, which worked well until the depression came. There was no complaint when the figures of 1920 were given, and yet the tax was the same as it is to-day. I want to say one word in conclusion to those who, we have been told from the benches opposite, have given pledges in this matter. It is so easy to give pledges at an election. [ Interruption. ]

That is why you are in office. [ Interruption. ]That is why the Coalition was in office.

It is easy to give pledges at elections, because the real facts are not known. When a man wants a pledge in regard to the Cinema Duty, does he give the information with regard to over-building of cinema halls that I have given?

The hon. Gentleman can dispute them until he is black in the face, but he cannot disprove them.

The Amendment on the Paper in the name of: the hon. Member for Ashton-under-Lyne will not meet the theatre question at all. Only the repeal of the duty will meet the theatre question. I am within the recollection of the Committee, and I think I have dealt fully with the theatre ques- tion. I merely want to appeal to hon. Members who gave pledges without knowing the real facts, and to say to them that they gave one other pledge of overriding importance. They were returned to support this Government, and if, on a question like this, by a one-sided, ex parte statement of the case, they were induced to express their sympathy by saying that they would vote for the repeal of this tax, I say to them to-night, "You now know the whole of the facts, you now know the whole position; Vote as you think right."

If I might make a comment upon the final sentence of the speech of the Financial Secretary, it would be this: We do now know the whole of the facts upon one issue, but, in my humble opinion, it is not the issue which is before the Committee. I cannot help thinking that a false issue has been presented by the Financial Secretary, on which, of course, with his matchless skill, he has ridden off with great success. We have heard four very able speeches from different quarters of the Committee, all delivered from the angle of the trade. The Financial Secretary has emphasised the point very clearly that this is a trade tax, and its repeal has been advocated by trade arguments. I do not believe that it is a trade tax; I believe that it is a tax on the people. I do not believe that its repeal should be advocated by trade arguments, but by arguments addressed to the interests of the people, and as, in my humble opinion, these 'have not been quite sufficiently developed to-night, I should like, for just a few minutes, to develop them.

The interest of the trade appear to me to be quite irrelevant to this matter. I cannot confess to any great knowledge—indeed, I have very little—of the circumstances of the theatrical industry, but I am quite sure that many Members will vote against this tax in the Lobby to-night who are totally indifferent to the profits of the theatrical profession. I shall cast my vote against it for two very simple reasons. In the first place, I think that this year, for the first time, there is money enough to let it go, and, in the second place, I believe that, that being so, it ought to go first amongst taxes, because it is a bad tax. It is a bad tax fox, amongst others, two reasons which are the most important of all to consider. A tax, to be a good tax, ought to be fair and it ought to be certain. The Entertainments Duty is neither fair nor certain, and it is, therefore, a bad tax and ought to go as soon as we have money to let it go. As a general principle, I think that one ought to be opposed to all these special taxes upon what may be called special luxuries or anything else. There is a widespread idea, with which I expect we have all had to struggle, that a tax of this sort is paid, not by people, but by a thing, by a trade, by a luxury, by something abstract. In the long run that is not so; it is paid by the people. This tax is paid by the people. It is, in fact, an additional Income Tax upon the incomes of very small classes, as all these taxes are. We have one large, fair, inclusive Income Tax. If we want money, let us raise it by that. It is unfair and unscientific, if I may use that term without assumption, to supplement your one large Income Tax by additions to the Income Tax on very small classes.

I am perfectly prepared to accept the challenge. I have given one reason already, that this year there is money enough to remit the tax.

I am sure the right hon. Baronet does not assume the House to be so ignorant of finance as to suppose they think the £100,000,000 surplus was realised when the Budget was introduced. I am of opinion that this year there is money enough to remit the tax and, as a bad tax, it ought to go. It is an unfair tax for the reason that it is a special local addition to the Income Tax. A second reason why it ought to go is that it is an uncertain tax. May I remind the Committee of the administrative, and even the legislative, difficulty in deciding when and where the tax is to fall Scarcely a local show is held anywhere all over the country without there being great uncertainty in the minds of those responsible for organising the show before it is held whether it will be liable to the tax or not. That is one of the worst features possible in a tax, and one that ought to weigh very much in our minds when we are thinking what tax has to go next. I will give another instance. Last year we were actually engaged in special legislation about a particular grand stand at a race-course to make it clear where the incidence of the tax fell. It is a troublesome and an expensive tax. The Customs and Inland Revenue show the most extraordinary skill in including new and difficult duties in their office without addition, to the staff, but it is an expensive and troublesome tax to collect and one that does not make as big a return for the machinery of collection as a tax ought. For these reasons the tax ought to go at the earliest possible opportunity. I believe this year is such an opportunity. If not this year, then next. It is important that not only the trade opinion should be expressed, but that opinion which is unrelated to the trade, in order that as time goes on, year by year, there should be an accumulation of expression of all sorts of opinion against the tax in order to encourage the Government to take it off at the first, possible opportunity.

We have heard a good deal from the point of view of the trade. The right hon. Gentleman who spoke last put in a word from his own special point of view, which appears to have somewhat changed this year from what it was last. I should like to put in a word from our point of view. I am one of the many hon. Members who are fond of listening to the broadcasting. If there is one thing that has struck us more than another it is the attitude of the theatre, and in particular, the variety section of the theatre, in the matter of broadcasting. The hon. Member for Crewe (Mr. Hemmerde) told us about the opera and the difficulty he had to make it pay. Opera, like everything else, has to advertise, and they spend considerable sums in advertising what is going on. I put it to him that one of the best advertisements of the opera, surely, is to be able to listen to a small portion of it. Yet only a short time ago the greatest singer in the world—I Chink I can give her name—Dame Melba, was going to sing at the opera. What happened? The musical people who were responsible for the people at the opera got in touch with her agents—I forget their names, but their address is in Sackville Street— and persuaded them to put it to Dame Melba that under no circumstances would they permit her to broadcast even one act of the opera. That was an absolute outrage on the very human desire of simply thousands of people in this country, scattered all over the country, who nightly listen in. [HON. MEMBERS: "They would hear it for nothing!"] They do not listen in for nothing. They pay for their licences. They listen in all over the country, and they include the humblest of the humble. Anybody who knows the facts knows that one can knock up a wireless receiving apparatus for £1. I want to put in a word from that point of view, which, I think, should not be quite disregarded when we come to a demand from the theatrical profession for relief from the Entertainments Duty. I suggest to those who speak for the profession, that they would get more sympathy from the country had their attitude toward the broadcasters been a little more sympathetic and human than it has been.

The hon. and learned Member for Crewe (Mr. Hemmerde) said a lot about the intolerable position in which the West End theatres are placed. There are a, great many of us who sympathise very much with the position in which the West End theaitres are, and not the least of them myself, but I suggest that the hon. And learned Member should have taken really good plays which are on to-day. If he would take the play going on now at Wyndham's Theatre, I wonder if his remarks would hold quite true—

Wyndham's Theatre is nightly packed, and it is almost impossible to get a seat.

The Dancers. There are other plays which can be seen, and I venture to suggest that one of the reasons why plays in London may not have been so successful as most of us would have wished has been that insufficient care has been exercised by the theatrical management in the selection of the plays. If a good play comes on, people will flock to it, and the Enter- tainments Duty makes no difference whatever.

I listened to the hon. and learned Member's speech. We have not much time, and the Committee want to come to a decision. The hon. and learned Member alluded to the play, Oliver Cromwell, which is a very good play, as the hon. Member for Dumbarton (Mr. Kirkwood) will agree. I know that he saw it, and enjoyed it very much. I suggest that the real solution of the difficulties of the variety profession in the West End of London is not in the direction of the remission of the Entertainments Duty, which I agree would do a great deal to help them. If the people want help, they should first of all adopt a more sympathetic attitude towards the staff that they employ. I know that they have not yet adopted the Valentine scale, The hon. and learned Member talked about the morals of the theatre. Is he not aware that the adoption of that scale would do more to help the morals of the theatre than any remission of the Entertainments Duty? Quite apart from that, I suggest to him. and to anybody who wants the Entertainments Duty remitted, that the difficulties are due not to the duty, but to the bad plays put on. I hope hon Members will support the Government to␣night. I voted against the duty on cinemas last year, and if this were confined to cinemas this year I might have done the same again; but, as regards the variety profession as a whole, I hope the few remarks I have put forward will induce some of my colleagues, at any rate, to support the Government to␣night.

I happen to be one of the 430 Members of this House who at the last election promised to support the repeal or the remission to some extent of the tax on the entertainment industry. I am sure a great many Members of the House will be disappointed by the statement of the Financial Secretary to the Treasury. I am not altogether sure that he has not proved too much. He has told us that there are 66,000 new seats in the entertainment industry. These 66,000 seats are open several times a day on an average of 320 days a year, yet he says they gave the Treasury a reduced return compared with the previous year. If these seats had been occupied the return to the Treasury would have been considerably greater than it is. The very fact of the reduction in the returns proves that the industry is suffering through this tax. On the other hand, he referred to the well‐being of parts of the industry in several large cities, but I am concerned for my part not so much with the large cities but with those mining and agricultural areas where those who run. the entertainment industry are not people with large capital but are those who cater for the people who go to be entertained and have very little money to spend. These places are severely hit as a result of this tax. I have gone to one or two myself and I have found that the larger‐ priced seats are practically empty. That means a loss not only to the caterers of entertainment but a loss to the Treasury. It is perfectly true that this tax was imposed as a wartime measure. It was imposed not merely to bring in revenue to the Treasury but to impose on the inhabitants of this country individual saving, for the very same purpose as increased railway fares were imposed, namely, that the people should, in a national emergency, save their money in oase of graver needs arising.

Reference has been made to the year 1920. If hon. Members will consider, they will remember that in 1919 there was the demobilisation of the Army, and there was plenty of money in the country. Soldiers were returning home with savings, money given them for their furlough, and the munition workers had a fairly good amount to spend on amusement. The result was that in the year 1920 the highest return from this tax was secured to the Treasury. Immediately the slump became effective, the revenue went down by £1,500,000. To‐day there has been no improvement on last year's return. What has been the result on unemployment, and what has been the result of the tax generally? Many people who frequented the theatres, picture halls and music halls in times past have been forced to forego entertainments altogether. That means, undoubtedly, a heavy loss to those who supply the entertainment, and a loss to the Treasury. Other people have gone on fewer occasions, and there again the industry has been hit. In cases where people have not gone on fewer occasions they have gone in the cheaper seats. All these things affect the industry.

I submit that this is a tax, in the mining areas, at any rate, and in the east end of our great cities, on the women and children who frequent these places. Many people are not able to amuse themselves, living under the congested conditions they do; so the men go to football matches, the women and children to cinemas, and the young men and young women to theatres. This is a tax upon those who pay for the lower?priced seats. In 1919, the tax was increased by 100 per cent. on seats under 6d., by 50 per cent. on seats over 6d. and under 1s., and by 100 per cent. on seats over 1s. and under 2s. When the matter was considered last year, the then Chancellor of the Exchequer said this industry was in no worse position than those which supplied beer, sugar and tea. That was not a fair analogy. Beer, sugar and tea will keep. There will be a sale ultimately for these commodities. I am told that whisky will keep, and that it improves with keeping, and I wish more was kept and less was consumed. The entertainment industry have to procure, purvey, and pay a heavy price for something that must be sold on a given date, at a certain place, and at a given hour, otherwise, to a large extent, it will lapse. The entertainment industry have to buy their commodity weekly and sell it weekly and if the commodity is not sold, the industry suffers.

This duty is a tax on education and health. The theatre, the music hall and the picture theatre ought to be educational institutions, and to a very large extent they are. Open air sports are necessary for health. If people cannot entertain themselves, the best thing they can do is to attend a football match or a cricket match. These things do not appeal to me as do a cycle ride on the high road or a garden at the back of my house. Other people who have not a garden or a cycle require other amusements, and it should be theirs at the lowest possible cost. This duty is also a tax on employment, because it increases unemployment. The ramshackle places of entertainment in the villages and in the east end of our towns ought to be pulled down and better places built: and because that is not being done, people are being deprived of employment. I have no personal interest in any place of amusement. I make my appeal along with those who have spoken from inside knowledge of the industry. I am satisfied that, taking the industry as a whole, they have put a true case. The request made has the support of 430 Members of this House, and if we cannot get a full repeal of the taxes they should insist at least on a remission of the taxes on the lower-priced seats.

The position of entertainments which are run entirely for profit has been dealt with already. I wish to draw attention to the consideration of those entertainments and performances which are promoted for the educational, moral and social uplift of the people and not for profit or gain. I represent two important counties in Wales—Breconshire and Radnorshire. Wales has been from time immemorial recognised as a centre of musical art, and also of agriculture, though there is little connection between the two subjects. It has been the practice to promote, for the higher education as well as for the religious uplift of the people, singing festivals, and meetings of that kind with competitions. They were held with no idea of gain but simply for the promotion of the best to be found in musical art and the advancement through culture of the whole of the people. As often as not the entertainments are run by working men who become guarantors for the funds. To such meetings I suggest that the entertainments tax was never intended to apply, and I suggest that the Chancellor of the Exchequer take steps to see that it does not apply to such meetings in future. In the case of horticultural shows more often than not working men guarantee the necessary funds, with no idea of personal gain, but to advance the science of horticulture. This tax was never intended to apply to such shows and they should be exempted from it. Agricultural shows are also run for the benefit of the whole community and the benefits derived from them are incalculable, apart from the value from the social point of view. There is no idea of making a profit. Agricultural shows should also in future be exempt from this tax. It is true that in certain cases exemption is allowed, but to make these shows a great success it is necessary to have a band. To encourage people not greatly interested in agriculture to come, side shows have to be organised, and without a band it is impossible to have these side shows. These shows are organised for the purpose of improving the standard of breeding of our horses, cattle, sheep, pigs and poultry and also improving the state of agriculture. All the benefit is ultimately derived by the whole of the community. In the circumstances, I beg the Prime Minister to reconsider the application of this duty to these shows and musical festivals and to exempt them entirely from its incidence.

I do not desire to give a silent vote on this question, and I wish to refer to the remark of an hon. Member that the cinema people sent out what were practically notices of intimidation to Members to vote for the abolition of the tax. No intimidatory communication came to me, and had one come, I should not have taken the slightest notice of it. With many other hon. Members of this House, I call for a remission of the duty, not as a result of intimidation, but because, in my opinion, it is an unjust duty, levied without taking into account the ability of the taxpayer to pay. I do not think the percentage levied on the lower‐priced seats as compared with the higher‐priced seats has been placed before the Committee, and I wish the Committee to realise the enormous percentage paid by the working people and the poorer class, in proportion, as compared with that paid by people who go to the West End theatres. The figures are:—threepenny seats, 33⅓ per cent.; fourpenny seats, 25 per cent.; fivepenny seats, 40 per cent.; sevenpenny seats, 28 per cent.; ninepenny seats, 33⅓ per cent. Passing to the seven and sixpenny and ten and sixpenny seats, we find the percentage is 14, and, taking a rough average,, the poorest in the community have got to pay, in proportion, 20 per cent. more for their seats than those who can afford to go to the West End theatres. Does the Prime Minister consider that a fair incidence of taxation?

I do not think the country will appreciate the levity with which the Financial Secretary treated this question. He has given many figures with regard to the cinema industry, but with very great respect, I happen to know a little about it myself, and I ask the right hon Gentleman is he aware that in a great many cinema theatres, the balance sheets of which I can produce, the Entertainments Duty amounts to 25 per cent. of the total capital of the company. When, on the top of that, Corporation Profits Tax and Income Tax have to be paid, what is left to keep the theatres going? It is quite true there are cases of extensions and improvements, but he does not tell us how that has come about. Owing to the Entertainments Duty, many of these places have gone into liquidation and have been bought up at a cheap figure, and the purchasers have been able to extend the theatres, but that does not say that the people who, in the first instance, held those theatres, have not lost tremendous sums of money. My plea is for a remission of the tax on sixpenny seats and under, in order to alleviate the present intolerable burden on the poorer classes, and put it more on the shoulders of those most able to bear it. I have an Amendment down to that effect. I cannot vote for total abolition, because I do not think it would be right to ask any Chancellor of the Exchequer to forego the amount of revenue which would be involved in total abolition of the duty. I would, however, appeal to the Government to agree to the proposal which I have indicated. It will cost practically nothing, and it will at any rate make for equalisation as between every class of the community.

I am not going to detain very long those who are either going to keep or to break their pledges from going into the lobbies, but this question has been discussed to-night mainly from the point of view of the entertainment industry, and I wish to put the point of view of the individual who frequents the picture house, or the theatre, or the football match. If you study any theatre or any of the larger cinema houses in the country and the scale of charges at the entrance, you will find that the prices of admission to the various seats are stated very carefully and specifically, and alongside those prices is stated the amount of the tax that will have to be paid by the individual. Right from the very commencement, the proprietors of the theatres and cinema houses in this country looked upon the tax as being merely a temporary tax, and they fixed it in such a way, and printed their notices in such a manner, that the public would know exactly how much tax the individual would have to pay for his seat. I have given my pledge to my constituents from the very first day I stood for Parliament, that I would move as far as I could, not for a remission of this tax, but for its abolition, and as far as one Member of Parliament can go, I am going to continue fighting for the abolition of this tax, not merely because it is imposing a burden upon the industry.

If I thought that the industry, were this tax abolished, was not going to pass on its abolition to the public, I would not stand up here and assist it in trying to get abolition, and I would move to put in safeguards to secure that the benefit should be obtained by the individuals frequenting these places. What was imposed as a War tax is now being kept on as a luxury tax, and imposed hardly and harshly upon those who are least fitted to bear such a burden, and I am therefore going to vote for its abolition. The industry, like all industries, is passing through a very critical period, and the remission of the tax may or may not assist the industry. I believe that the best assistance it can get is in the abolition of the tax, securing thereby the attraction of more people to the industry and enabling the industry to draw in more than they will do by keeping on the tax. [HON. MEMBERS: "Divide."]

If hon. Members opposite are in such a hurry to divide they will find I am not going to sit down because they are in a hurry. I have faced a crowd bigger than that opposite, and they have not been able to drown me. I want, however, to appeal to the Financial Secretary to the Treasury. The state of the benches opposite exhibit the panic into which the Government has been driven. There are 430 Members of the House who gave a pledge to their constituents, and not to the cinema trade. [HON. MEMBERS: "Why should they?"] I say their constituents, to the people who elected them! Now we are being asked, because the Financial Secretary reels off a lot of figures, to change that opinion. If hon. Members did not know the facts before, well, then, they had no right to give the pledge they did. Having given that pledge, they are in honour bound to their constituents to act as they promised, or there is no honour in their politics. They cannot face the facts. What are the facts? There are £10,000,000 in this tax. From all classes of entertainments up and down the length and breadth of the country. There is £100,000,000 surplus,, of which the Government have given more than half to the most interested and most privileged classes in the community, and now hon. Members who did not even pledge themselves to a reduction in Income Tax, and did pledge themselves to the abolition of the Entertainments Duty, upon the request, upon the hoisting of the signal of distress, upon the broadcasting of the S.O.S. by the Financial Secretary, are going to repudiate the pledges to their constituents—[HON. MEMBERS: "Oh, oh!"]—to save the Government in its hour of trial. If that is the method of the Conservative party in this House, then hon. Members who gave their pledges to their constituents, who pledged their honour in this matter, will, at the next Election, see a very wide and very far-reaching effect in the personnel of this House.

The Financial Secretary interjects "Glasgow"! There will be more Glasgows in the next election. You have only to go on taxing the poor in the manner you are doing, and relieving the rich in the manner you are doing, and then a lot of those opposite to me will only be able to enter the Central Hall and will not be permitted to come further. I sincerely hope that amongst the Members of the Conservative party there is a bigger sense of honour than that of merely saving the party, and that they have some regard for their word. After all, if you cannot believe a man when he says a thing what faith can you have in him? If your constituents cannot believe what you say how much longer do you expect they will have faith in you?

I am not worrying about it, but I am glad that the hon. Member opposite admits what is going to happen. We do not know what fate is going to bring about, but I do hope that those hon. Members who gave a pledge on this question are going to keep their word. The constituents who sent them here expect them to vote either for or against the abolition of this duty according to the pledge which they gave to them. There are some who said they would not vote for it, but I have no honour—[HON. MEMBERS: "Hear, hear."]—I have as much honour as any hon. Member opposite, and my life can be placed before the public more than that of any hon. Member in this Committee. I hope hon. Members opposite are going to vote according to their pledges and thus show that, as far as they are concerned, party means nothing to them, but their word of honour is something that does matter.

I hope the Committee will be ready now to come to a decision on this particular Clause. Having regard to the number of new Clauses we have to discuss to-morrow, I think it would be a great service to the Debate if we could have the new Clauses relating to the Entertainments Duty dealt with this evening. There will be opportunities for hon. Members who introduce other proposals to say what they have to say on their introduction. I only wish to add a word or two in answer to several speeches which have been made. I am interested in this subject because it has fallen to my lot, during four Budgets, to discuss at some length the Entertainments Duty. I am grateful to the hon. and learned Member for Crewe (Mr. Hemmerde) for his allusion to the Budget of 1917 or 1918, when an attempt was made to ease the incidence of this duty, and to inaugurate a scheme which has lasted from that time till now. The Entertainments Duty is a tax which has caused and must cause a good deal of complaint, because it is one that cannot be hidden like some indirect taxes. The man who pays is quite conscious of it, and the man who has to charge it on admission to his place of entertainment is also aware of it. Consequently, there is little wonder that every year since the tax was imposed there has been an onslaught of greater or less vigour each year that this duty has been in force. To a Chancellor of the Exchequer the ultimate effect always comes down to this: that, while it must be his ardent desire to reduce all taxes that press most hardly upon the people, the taxes were so much increased during the war that necessarily in the earlier years after the war we can remit only one or two taxes in the course of the financial year. The easement that any Chancellor of the Exchequer may hope to see in these great burdens can only be spread over a number of things that have been taxed for a period of years. That is a lamentable fact.

The amount of money at my disposal this year I have tried to distribute in a way that would be most widely felt throughout the country. I may or may not have been successful, but I think that probably, on the whole, it was deemed to be a fair attempt, and I have done as much this year as could be done in that direction. May I point out to hon. Members opposite that had it been possible, and had the Government decided to make remissions in some of the directions they desired on matters which we have already discussed, there would have been nothing to give away to abolish the Entertainments Duty about which they are now feeling rather strongly. I feel that there is nothing else left. I cannot assume that there will be on this year's Estimates the same balance that occurred last year to everyone's surprise, and to nobody more than to the late Chancellor of the Exchequer. I have budgeted as closely as I am able, and although all men are fallible, I cannot

and dare not hope for any windfall in that direction. By the concessions I have made I have already encroached to the very uttermost upon what I may hope to get from savings that can be effected.

I cannot understand why the argument should be put forward that there is plenty of money to make allowance this year for the abolition of this duty. The hon. Member who used that argument has devoted his great ability during those discussions to attacking with much skill the various taxes which he defended last year. I cannot alter my point of view so quickly. I can only give away what I have to give, and no more. Everyone feels that, in regard to such questions as the taxation on sugar, had the money been there, we should have been only too pleased to do what we could in that direction. I admit that the Entertainments Duty bears heavily on many people, and it is one to which consideration must be given as soon as there be money available. But this year that is perfectly impracticable having regard to what we have already done. I hope the Committee will now be in a position to come to a decision, and that hon. Members will support the Government on this question.

Question put, "That the Clause be read a Second time."

The Committee divided: Ayes, 153, Noes, 274.

Division No. 221.]

AYES.

[11.50 p.m.

Adams, D.

Duffy, T. Gavan

Herriotts, J.

Adamson, Rt. Hon. William

Duncan, C.

Hill, A.

Adamson, W. M. (Staff., Cannock)

Dunnico, H.

Hinds, John

Alexander, A. V. (Sheffield, Hillsbro')

Ede, James Chuter

Hirst, G. H.

Ammon, Charles George

Edwards, C. (Monmouth, Bedwellty)

Hodge, Lieut.-Col. J. P. (Preston)

Attlee, C. R.

Entwistle, Major C. F.

Hughes, Collingwood

Barker, G. (Monmouth, Abertillery)

Evans, Ernest (Cardigan)

Hutchison, Sir R. (Kirkcaldy)

Barnes, A.

Foot, Isaac

Jarrett, G. W. S.

Benn, Captain Wedgwood (Leith)

Gosling, Harry

Jenkins, W. (Glamorgan, Neath)

Bonwick, A.

Graham, W. (Edinburgh, Central)

John, William (Rhondda, West)

Bowerman, Rt. Hon. Charles W.

Gray, Frank (Oxford)

Johnston, Thomas (Stirling)

Broad, F. A.

Greenall, T.

Johnstone, Harcourt (Willesden, East)

Brotherton, J.

Greenwood, A. (Nelson and Colne)

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

Brown, James (Ayr and Bute)

Grenfell, D. R. (Glamorgan)

Jones, Morgan (Caerphilly)

Buchanan, G.

Griffiths, T. (Monmouth, Pontypooll

Jones, R. T. (Carnarvon)

Buckle, J.

Grigg, Sir Edward

Jones, T. I. Mardy (Pontypridd)

Burgess, S.

Groves, T.

Jowett, F. W. (Bradford, East)

Burnie, Major J. (Bootle)

Grundy, T. W.

Kirkwood, D.

Buxton, Charles (Accrington)

Guest, Hon. C. H. (Bristol, N.)

Lawson, John James

Buxton, Noel (Norfolk, North)

Guthrie, Thomas Maule

Leach, W.

Cape, Thomas

Hall, F. (York, W. R., Normanton)

Lee, F.

Chapple, W. A.

Hall, G. H. (Merthyr Tydvil)

Linfield, F. C.

Charleton, H. C.

Harbord, Arthur

Lowth, T.

Clarke, Sir E. C.

Hardie, George D.

Lunn, William

Collie, Sir John

Harris, Percy A.

MacDonald, J. R. (Aberavon)

Collins, Sir Godfrey (Greenock)

Hastings, Patrick

M'Entee, V. L.

Darbishire, C. W.

Hay, Captain J. P. (Cathcart)

McLaren, Andrew

Davies, Rhys John (Westhoughton)

Hayday, Arthur

Maclean, Neil (Glasgow, Govan)

Davison, J. E. (Smethwick)

Hayes, John Henry (Edge Hill)

March, S.

Middleton, G.

Saklatvala, S.

Thorne, G. R. (Wolverhampton, E.)

Morel, E. D.

Salter, Dr. A.

Thorne, W. (West Ham, Plaistow)

Morrison, R. C. (Tottenham, N.)

Scrymgeour, E.

Tillett, Benjamin

Murnin, H.

Sexton, James

Trevelyan, C. P.

Murray, John (Leeds, West)

Shinwell Emanuel

Turner, Ben

Murray, R. (Renfrew, Western)

Short, Alfred (Wednesbury)

Walsh, Stephen (Lancaster, Ince)

Nichol, Robert

Simon, Rt. Hon. Sir John

Watson, W. M. (Dunfermline)

O'Grady, Captain James

Simpson, J. Hope

Watts-Morgan, Lt.-Col. D. (Rhondda)

Oliver, George Harold

Sinclair, Sir A.

Weir, L. M.

Parker, H. (Hanley)

Sitch, Charles H.

Welsh, J. C.

Parkinson, John Allen (Wigan)

Lees-Smith, H. B. (Keighley)

Westwood, J.

Parry, Lieut.-Colonel Thomas Henry

Smith, T. (Pontefract)

Wheatley, J.

Pattinson, S. (Horncastle)

Snell, Harry

White, Charles F. (Derby, Western)

Phillipps, Vivian

Snowden, Philip

Williams, Dr. J. H. (Llanelly)

Ponsonby, Arthur

Spencer, George A. (Broxtowe)

Williams, T (York, Don Valley)

Potts, John S.

Stephen, Campbell

Wilson, C. H. (Sheffield, Attercliffe)

Pringle, W. M. R.

Stephenson, Lieut.-Colonel H. K.

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

Rees, Sir Beddoe

Stewart, J. (St. Rollox)

Wright, W.

Richards, R.

Strauss, Edward Anthony

Young, Rt. Hon. E. H. (Norwich)

Richardson, R. (Houghton-le-Spring)

Sturrock, J. Leng

Riley, Ben

Sullivan, J.

TELLERS FOR THE AYES. —Lieut.-Commander Kenworthy and Mr. Robert Young.—Lieut.-Commander Kenworthy and Mr. Robert Young.

Ritson, J.

Sutherland, Rt. Hon. Sir William

Robinson, W. C. (York, Elland)

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

Rose, Frank H.

NOES.

Agg-Gardner, Sir James Tynte

Cobb, Sir Cyril

Hawke, John Anthony

Alexander, Col. M. (Southwark)

Cockerill, Brigadier-General G. K.

Henderson, Sir T. (Roxburgh)

Allen, Lieut.-Col. Sir William James

Colfox, Major Wm. Phillips

Henn, Sir Sydney H.

Amery, Rt. Hon. Leopold C. M. S.

Colvin, Brig.-General Richard Beale

Hennessy, Major J. R. G.

Ashley, Lt.-Col. Wilfrid W.

Cope, Major William

Herbert, Dennis (Hertford, Watford)

Astbury, Lieut.-Com. Frederick W.

Cotts, Sir William Dingwall Mitchell

Herbert, S. (Scarborough)

Astor, J. J. (Kent, Dover)

Courthope, Lieut.-Col. George L.

Hewett, Sir J. P.

Austin, Sir Herbert

Craig, Captain C. C. (Antrim, South)

Hilder, Lieut.-Colonel Frank

Baird, Rt. Hon. Sir John Lawrence

Crook, C. W. (East Ham, North)

Hiley, Sir Ernest

Baldwin, Rt. Hon. Stanley

Crooke, J. Smedley (Deritend)

Hoare, Lt.-Col. Rt. Hon. Sir S. J. G.

Balfour, George (Hampstead)

Curzon, Captain Viscount

Hogg, Rt. Hon. Sir D. (St. Marylebone)

Banbury, Rt. Hon. Sir Frederick G.

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

Holbrook, Sir Arthur Richard

Banks, Mitchell

Davies, Alfred Thomas (Lincoln)

Hood, Sir Joseph

Barlow, Rt. Hon. Sir Montague

Davies, Thomas (Cirencester)

Hopkins, John W. W.

Barnett, Major Richard W.

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

Hopkinson, A. (Lancaster, Mossley)

Barnston, Major Harry

Dixon, C. H. (Rutland)

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

Barrie, Sir Charles Coupar (Banff)

Doyle, N. Grattan

Houfton, John Plowright

Becker, Harry

Du Pre, Colonel William Baring

Howard, Capt. D. (Cumberland, N.)

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

Edmondson, Major A. J.

Howard-Bury, Lieut.-Col. C. K.

Bellairs, Commander Carlyon W.

Ednam, Viscount

Hudson, Capt. A.

Bennett, Sir T. J. (Sevenoaks)

Elliot, Captain Walter E. (Lanark)

Hume, G. H.

Bentinck, Lord Henry Cavendish-

Ellis, R. G.

Hume-Williams, Sir W. Ellis

Berry, Sir George

England, Lieut.-Colonel A.

Hunter-Weston, Lt.-Gen. Sir Aylmer

Betterton, Henry B.

Erskine, James Malcolm Monteith

Hurd, Percy A.

Birchall, Major J. Dearman

Erskine, Lord (Weston-super-Mare)

Hutchison, G. A. C. (Midlothian, N.)

Bird, Sir R. B. (Wolverhampton, W.)

Erskine-Bolst, Captain C.

Inskip, Sir Thomas Walker H.

Bird, Sir William B. M. (Chichester)

Evans, Capt. H. Arthur (Leicester, E.)

Jephcott, A. R.

Blades, Sir George Rowland

Eyres-Monsell, Com. Bolton M.

Jodrell, Sir Neville Paul

Blundell, F. N.

Falcon, Captain Michael

Johnson, Sir L. (Walthamstow, E.)

Bowyer, Captain G. E. W.

Falle, Major Sir Bertram Godfray

Jones, Henry Haydn (Merioneth)

Brass, Captain W.

Fawkes, Major F. H.

Joynson-Hicks, Sir William

Brassey, Sir Leonard

Fermor-Hesketh, Major T.

Kelley, Major Fred (Rotherham)

Bridgeman, Rt. Hon. William Clive

Flanagan, W. H.

King, Captain Henry Douglas

Brittain, Sir Harry

Ford, Patrick Johnston

Kinloch-Cooke, Sir Clement

Brown, Brig.-Gen. Clifton (Newbury)

Foreman, Sir Henry

Lane-Fox, Lieut.-Colonel G. R.

Brown, J. W. (Middlesbrough, E.)

Forestier-Walker, L.

Leigh, Sir John (Clapham)

Bruton, Sir James

Foxcroft, Captain Charles Talbot

Lloyd, Cyril E. (Dudley)

Buckingham, Sir H.

Fraser, Major Sir Keith

Lloyd-Greame, Rt. Hon. Sir Philip

Buckley, Lieut.-Colonel A.

Fremantle, Lieut.-Colonel Francis E.

Locker-Lampson, Com. O. (Handsw'th)

Bull, Rt. Hon. Sir William James

Furness, G. J.

Lorden, John William

Burn, Colonel Sir Charles Rosdew

Galbraith, J. F. W.

Lorimer, H. D.

Butcher, Sir John George

Ganzoni, Sir John

Lort-Williams, J.

Butler, J. R. M. (Cambridge Univ.)

Garland, C. S.

Lougher, L.

Butt, Sir Alfred

Gates, Percy

Loyd, Arthur Thomas (Abingdon)

Button, H. S.

Gould, James C.

Lumley, L. R.

Cadogan, Major Edward

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

Lynn, R. J.

Campion, Lieut.-Colonel W. R.

Greenwood, William (Stockport)

Macnaghten, Hon. Sir Malcolm

Cassels, J. D.

Grenfell, Edward C. (City of London)

McNeill, Ronald (Kent, Canterbury)

Cautley, Henry Strother

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

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

Cayzer, Sir C. (Chester, City)

Hacking, Captain Douglas H.

Margesson, H. D. R.

Cecil, Rt. Hon. Sir Evelyn (Aston)

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

Mason, Lieut.-Col. C. K.

Cecil, Rt. Hon. Lord H. (Ox. Univ.)

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

Mercer, Colonel H.

Chadwick, Sir Robert Burton

Halstead, Major D.

Mitchell, W. F. (Saffron Walden)

Chamberlain, Rt. Hon. N. (Ladywood)

Hamilton, Sir George C. (Altrincham)

Mitchell, Sir W. Lane (Streatham)

Chapman, Sir S.

Hannon, Patrick Joseph Henry

Molson, Major John Elsdale

Chilcott, Sir Warden

Harmsworth, Hon. E. C. (Kent)

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

Churchman, Sir Arthur

Harrison, F. C.

Morden, Col. W. Grant

Clarry, Reginald George

Harvey, Major S. E.

Moreing, Captain Algernon H.

Morrison, Hugh (Wilts, Salisbury)

Rhodes, Lieut.-Col. J. P.

Sykes, Major-Gen. Sir Frederick H.

Morrison-Bell, Major A. C. (Honiton)

Richardson, Sir Alex. (Gravesend)

Terrell, Captain R. (Oxford, Henley)

Murchison, C. K.

Richardson, Lt.-Col. Sir P. (Chertsey)

Thompson, Luke (Sunderland)

Nall, Major Joseph

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

Thomson, F. C. (Aberdeen, South)

Nesbitt, Robert C.

Roberts, Rt. Hon Sir S. (Ecclesall)

Thorpe, Captain John Henry

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

Roberts, Samuel (Hereford, Hereford)

Titchfield, Marquess of

Newson, Sir Percy Wilson

Robertson-Despencer, Major (Islgtn, W.)

Tout, W. J.

Nicholson, Brig.-Gen. J. (Westminster)

Rogerson, Capt. J. E.

Tryon, Rt. Hon. George Clement

Nicholson, William G. (Petersfield)

Rothschild, Lionel de

Tubbs, S. W.

Norton-Griffiths, Lieut.-Col. Sir John

Roundell, Colonel R. F.

Turton, Edmund Russborough

O'Neill, Rt. Hon. Hugh

Royce, William Stapleton

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

Ormsby-Gore, Hon. William

Ruggles-Brise, Major E.

Waring, Major Walter

Paget, T. G.

Russell, Alexander West (Tynemouth)

Warner, Sir T. Courtenay T.

Parker, Owen (Kettering)

Russell, William (Bolton)

Watson, Capt. J. (Stockton-on-Tees)

Pease, William Edwin

Russell-Wells, Sir Sydney

Watts, Dr. T. (Man., Withington)

Pennefather, De Fonblanque

Samuel, A. M. (Surrey, Farnham)

Wells, S. R.

Penny, Frederick George

Samuel, Samuel (W'dsworth, Putney)

Weston, Colonel John Wakefield

Percy, Lord Eustace (Hastings)

Sanders, Rt. Hon. Sir Robert A.

Wheler, Col. Granville C. H.

Perring, William George

Sanderson, Sir Frank B.

White, Lt.-Col. G. D. (Southport)

Peto, Basil E.

Sandon, Lord

Wilson, Col. M. J. (Richmond)

Philipson, Mabel

Shaw, Thomas (Preston)

Windsor-Clive, Lieut.-Colonel George

Pilditch, Sir Philip

Shepperson, E. W.

Winterton, Earl

Pollock, Rt. Hon. Sir Ernest Murray

Simpson-Hinchliffe, W. A.

Wise, Frederick

Pownall, Lieut.-Colonel Assheton

Skelton, A. N.

Wolmer, Viscount

Pretyman, Rt. Hon. Ernest G.

Smith, Sir Allan M. (Croydon, South)

Wood, Rt. Hn. Edward F. L. (Ripon)

Privett, F. J.

Smith, Sir Harold (Wavertree)

Wood, Major Sir S. Hill- (High Peak)

Rae, Sir Henry N.

Somerville, A. A. (Windsor)

Woodcock, Colonel H. C.

Raeburn, Sir William H.

Somerville, Daniel (Barrow-in-Furness)

Worthington-Evans, Rt. Hon. Sir L.

Raine, W.

Spender-Clay, Lieut.-Colonel H. H.

Yate, Colonel Sir Charles Edward

Rankin, Captain James Stuart

Stanley, Lord

Yerburgh, R. D. T.

Rawlinson, Rt. Hon. John Fredk. Peel

Steel, Major S. Strang

Rawson, Lieut.-Com. A. C.

Stewart, Gershom (Wirral)

TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs.

Reid, Capt. A. S. C. (Warrington)

Stuart, Lord C. Crichton-

Rentoul, G. S.

Sueter, Rear-Admiral Murray Fraser

Reynolds, W. G. W.

Sugden, Sir Wilfrid H.

NEW CLAUSE.—(Amendment of Entertainments Duty.)

Notwithstanding anything in Section one of The Finance (New Duties) Act, 1916, as amended by any subsequent enactment, Entertainments Duty shall not be charged for admission to any entertainment where the Commissioners of Customs and Excise are satisfied that the whole of the profits thereof are devoted to philanthropic or charitable purposes.—[ Mr. T. Griffiths. ]

Brought up, and read the First time.

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

I am not a believer in late sittings, and. therefore, I shall be very brief. I think that all hon. Members will agree with me when I say that the Financial Secretary has conducted these Debates very skilfully and with great ability. When there was a question of reducing the tax on tea or sugar, or the Entertainments Duty, the right hon. Gentleman would immediately get up and show how the tax in question could not be reduced. When it was a question of the Income Tax, then the money could be immediately found. The Clause, however, which I am moving, is not concerned with trade profits. It refers to charitable institutions, and I want to give just one or two illustrations of the way in which charitable institutions, such as hospitals, nursing homes, sick funds, and so on, are being penalised by this tax; and not only are they penalised, but actually the musical art of this country is being killed, especially so far as Wales is concerned. Take the question of the amateur operatic societies in Wales. [ Interruption. ] I wish we could get just a little order in the Committee. Unless we can do so, I shall have to follow the example of the hon. Member for Govan (Mr. N. Maclean), and continue my remarks far longer than I otherwise should. So far as Wales is concerned, I may inform some of those hon. Members who are obstructing, that Wales is a sea of song—[ Interruption ]—and, as a result of this tax, that sea of song is being, reduced to a stream. All musical art there is being killed, not only in our musical festival, and so far as amateur operatics are concerned, but in our schools as well. I sent a case to the Prime Minister the other day, where school boys in a school which was endowed—not carried on by any grant from the Government—performed "The Bohemian Girl." Because some youths over 18 were in a band that accompanied the performance, a tax was placed on the performance. As a result of the tax, the performance was ruined and left the school in debt. Musical festivals in Wales, operatic societies—[ Interruption ].

I think less time will be consumed if there is less general conversation in the Committee.

Hon. Members can depend upon it, they will never kill Welshmen. You are trying, by this Entertainments Duty, to destroy the very finest thing in Wales, that is, its musical art. If you try to obliterate singing in Wales, then I would warn the Committee. A little thing started Sinn Fein in Ireland, and a little thing can start—[ Interruption ]—I want to impress on the Committee that this duty is killing and obliterating—you have not done it yet—musical art so far as Wales is concerned. [HON. MEMBERS: "Never!"] The music that you get—

Is the hon. Gentleman arguing that the proceeds from all these entertainments in Wales are solely devoted to philanthropic and charitable purposes?

The majority of these musical entertainments in the amateur operatic societies and the schools are for charitable purposes; they are not run for profit. That is the difference between this Debate and the previous discussion. I ask the Financial Secretary to the Treasury to do away with Clause 8, especially in so far as boys in schools are concerned, where, simply because the lads are over 18 years of age and join a band, this duty is imposed. It is no encouragement to the schoolmaster or the teachers to give their time during the whole of the winter; nor for the parents to find the clothes for the performance, nor for people to contribute towards the cost of the scenery. All this spirit is being destroyed as a result of this duty. There is not a big amount involved, and I appeal to the Financial Secretary to the Treasury to make this concession.

I am afraid I cannot accept the Amendment. It is one that was moved last year, and last year a concession was made. Under the original Act, charitable entertainments were not subject to duty if 20 per cent. only went in expenses. It was represented to the House last year that that was not quite high enough, and it was put up to 30 per cent. Therefore, any entertainment, of which not more than 30 per cent. of the proceeds go in expenses, is free of the Entertainments Duty. Now the hon. Gentleman asks us not merely to take another bite at the cherry, but to swallow the cherry altogether, and we cannot do that. Any charitable entertainment that is run with more than 30 per cent. expenses strikes me as not being a charitable entertainment at all.

In these circumstances I hope the Committee will not discuss it any further. May I make an appeal and explanation to the Committee to remember that it was decided we should rise at 12 o'clock and, that being so, while I know very many hon. Members desire to reach and have a Division on the new Clause standing in the name of the hon. Member for Ashton-under-Lyne (Sir W. de Frece), I find from the Chair that it is impossible to reach that, as there are several other Amendments to come before it. The other new Clause in regard to the scale of the Entertainments Duty was not put down till after these others, and it would be impossible to reach my hon. Friend's new Clause till one or two o'clock in the morning. I hope the Committee will be prepared to take a vote on this new Clause now and then report Progress.

Question put, "That the Clause be read a Second time."

The Committee divided: Ayes, 148, Noes, 264.

Division No. 222.]

AYES.

[12.12 a.m.

Adams, D.

Buchanan, G.

Davies, Rhys John (Westhoughton)

Adamson, Rt. Hon. William

Burgess, S.

Davison, J. E. (Smethwick)

Adamson, W. M. (Staff., Cannock)

Burnie, Major J. (Bootle)

Duffy, T. Gavan

Alexander, A. V. (Sheffield, Hillsbro')

Buxton, Charles (Accrington)

Dunnico, H.

Ammon, Charles George

Buxton, Noel (Norfolk, North)

Ede, James Chuter

Attlee, C. R.

Cape, Thomas

Edwards, C. (Monmouth, Bedwellty)

Barker, G. (Monmouth, Abertillery)

Chapple, W. A.

Entwistle, Major C. F.

Barrie, Sir Charles Coupar (Banff)

Charleton, H. C.

Evans, Ernest (Cardigan)

Benn, Captain Wedgwood (Leith)

Clarke, Sir E. C.

Falconer, J.

Bonwick, A.

Collins, Sir Godfrey (Greenock)

Foot, Isaac

Bowerman, Rt. Hon. Charles W.

Collins, Pat (Walsall)

Gosling, Harry

Broad, F. A.

Crook, C. W. (East Ham, North)

Gray, Frank (Oxford)

Brotherton, J.

Darbishire, C. W.

Greenall, T.

Brown, James (Ayr and Bute)

Davies, Alfred Thomas (Lincoln)

Greenwood, A. (Nelson and Colne)

Grenfell, D. R. (Glamorgan)

M'Entee, V. L.

Short, Alfred (Wednesbury)

Griffiths, T. (Monmouth, Pontypool)

McLaren, Andrew

Simon, Rt. Hon. Sir John

Groves, T.

Maclean, Neil (Glasgow, Govan)

Simpson, J. Hope

Grundy, T. W.

March, S.

Sinclair, Sir A.

Guthrie, Thomas Maule

Millar, J. D.

Sitch, Charles H.

Hall, F. (York, W. R., Normanton)

Morel, E. D.

Smith, T. (Pontefract)

Hall, G. H. (Merthyr Tydvil)

Morrison, R. C. (Tottenham, N.)

Snell, Harry

Hamilton, Sir R. (Orkney & Shetland)

Murnin, H.

Snowden, Philip

Harbord, Arthur

Murray, R. (Renfrew, Western)

Spencer, George A. (Broxtowe)

Hardie, George D.

Nichol, Robert

Stephen, Campbell

Hay, Captain J. P. (Cathcart)

O'Grady, Captain James

Stephenson, Lieut.-Colonel H. K.

Hayday, Arthur

Oliver, George Harold

Sturrock, J. Leng

Hayes, John Henry (Edge Hill)

Parker, H. (Hanley)

Sullivan, J.

Herriotts, J.

Parkinson, John Allen (Wigan)

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

Hill, A.

Parry, Lieut.-Colonel Thomas Henry

Thorne, G. R. (Wolverhampton, E.)

Hinds, John

Pattinson, S. (Horncastle)

Tillett, Benjamin

Hirst, G. H.

Perkins, Colonel E. K.

Tout, W. J.

Hodge, Lieut.-Col. J. P. (Preston)

Phillipps, Vivian

Trevelyan, C. P.

Hutchison, Sir R. (Kirkcaldy)

Ponsonby, Arthur

Turner, Ben

Jenkins, W. (Glamorgan, Neath)

Potts, John S.

Walsh, Stephen (Lancaster, Ince)

Jenkins, W. A. (Brecon and Radnor)

Pringle, W. M. R.

Watson, W. M. (Dunfermline)

John, William (Rhondda, West)

Rae, Sir Henry N.

Watts-Morgan, Lt.-Col. D. (Rhondda)

Johnston, Thomas (Stirling)

Rees, Sir Beddoe

Weir, L. M.

Johnstone, Harcourt (Willesden, East)

Richards, R.

Welsh, J. C.

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

Richardson, R. (Houghton-le-Spring)

Westwood, J.

Jones, R. T. (Carnarvon)

Riley, Ben

Wheatley, J.

Jones, T. I. Mardy (Pontypridd)

Ritson, J.

White, Charles F. (Derby, Western)

Jowett, F. W. (Bradford, East)

Robinson, W. C. (York, Elland)

Williams, Dr. J. H. (Llanelly)

Kenworthy, Lieut.-Commander J. M.

Rose, Frank H.

Williams, T (York, Don Valley)

Kirkwood, D.

Royce, William Stapleton

Wilson, C. H. (Sheffield, Attercliffe)

Lawson, John James

Saklatvala, S.

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

Leach, W.

Salter, Dr. A.

Wright, W.

Lee, F.

Scrymgeour, E.

Young, Robert (Lancaster, Newton)

Lees-Smith, H. B. (Keighley)

Sexton, James

Linfield, F. C.

Shaw, Thomas (Preston)

TELLERS FOR THE AYES .—Mr. Lunn and Mr. Morgan Jones..—Mr. Lunn and Mr. Morgan Jones.

Lowth, T.

Shinwell, Emanuel

Mac Donald, J. R. (Aberavon)

NOES.

Agg-Gardner, Sir James Tynte

Campion, Lieut.-Colonel W. R.

Fremantle, Lieut.-Colonel Francis E.

Alexander, Col. M. (Southwark)

Cassels, J. D.

Furness, G. J.

Allen, Lieut.-Col. Sir William James

Cautley, Henry Strother

Galbraith, J. F. W.

Amery, Rt. Hon. Leopold C. M. S.

Cecil, Rt. Hon. Sir Evelyn (Aston)

Ganzoni, Sir John

Ashley, Lt.-Col. Wilfrid W.

Cecil. Rt. Hon. Lord H. (Ox. Univ.)

Garland, C. S.

Astbury, Lieut.-Com. Frederick W.

Chadwick, Sir Robert Burton

Gates, Percy

Astor, J. J. (Kent, Dover)

Chamberlain, Rt. Hon. N. (Ladywood)

Gould, James C.

Austin, Sir Herbert

Chapman, Sir S.

Greenwood, William (Stockport)

Baird, Rt. Hon. Sir John Lawrence

Chilcott, Sir Warden

Grenfell, Edward C. (City of London)

Baldwin, Rt. Hon. Stanley

Churchman, Sir Arthur

Guest, Hon. C. H. (Bristol, N.)

Balfour, George (Hampstead)

Clarry, Reginald George

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

Banbury, Rt. Hon. Sir Frederick G.

Cobb, Sir Cyril

Hacking, Captain Douglas H.

Banks, Mitchell

Colfox, Major Wm. Phillips

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

Barlow, Rt. Hon. Sir Montague

Colvin, Brig.-General Richard Beale

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

Barnett, Major Richard W.

Cope, Major William

Halstead, Major D.

Barnston, Major Harry

Cotts, Sir William Dingwall Mitchell

Hamilton, Sir George C. (Altrincham)

Becker, Harry

Courthope, Lieut.-Col. George L.

Hannon, Patrick Joseph Henry

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

Craig, Captain C. C. (Antrim, South)

Harmsworth, Hon. E. C. (Kent)

Bellairs, Commander Carlyon W.

Crooke, J. Smedley (Deritend)

Harris, Percy A.

Bennett, Sir T. J. (Sevenoaks)

Curzon, Captain Viscount

Harrison, F. C.

Bentinck, Lord Henry Cavendish-

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

Harvey, Major S. E.

Berry, Sir George

Davies, Thomas (Cirencester)

Hawke, John Anthony

Betterton, Henry B.

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

Henderson, Sir T. (Roxburgh)

Birchall, Major J. Dearman

Dixon, C. H. (Rutland)

Henn, Sir Sydney H.

Bird, Sir R. B. (Wolverhampton, W.)

Doyle, N. Grattan

Hennessy, Major J. R. G.

Bird, Sir William B. M. (Chichester)

Du Pre, Colonel William Baring

Herbert, Dennis (Hertford, Watford)

Blades, Sir George Rowland

Edmondson, Major A. J.

Herbert, S. (Scarborough)

Blundell, F. N.

Ednam, Viscount

Hewett, Sir J. P.

Bowyer, Captain G. E. W.

Elliot, Captain Walter E. (Lanark)

Hiley, Sir Ernest

Brass, Captain W.

Ellis, R. G.

Hoare, Lt.-Col. Rt. Hon. Sir S. J. G.

Brassey, Sir Leonard

England, Lieut.-Colonel A.

Hogg, Rt. Hon. Sir D. (St. Marylebone)

Bridgeman, Rt. Hon. William Clive

Erskine, Lord (Weston-super-Mare)

Holbrook, Sir Arthur Richard

Brittain, Sir Harry

Erskine-Bolst, Captain C.

Hood, Sir Joseph

Brown, Brig.-Gen. Clifton (Newbury)

Evans, Capt. H. Arthur (Leicester, E.)

Hopkins, John W. W.

Brown, J. W. (Middlesbrough, E.)

Eyres-Monsell, Com. Bolton M.

Hopkinson, A. (Lancaster, Mossley)

Bruton, Sir James

Falcon, Captain Michael

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

Buckingham, Sir H.

Falle, Major Sir Bertram Godfray

Houfton, John Plowright

Buckley, Lieut.-Colonel A.

Fawkes, Major F. H.

Howard, Capt. D. (Cumberland, N.)

Bull, Rt. Hon. Sir William James

Fermor-Hesketh, Major T.

Howard-Bury, Lieut.-Col. C. K.

Burn, Colonel Sir Charles Rosdew

Flanagan, W. H.

Hudson, Capt. A.

Butcher, Sir John George

Ferd, Patrick Johnston

Hughes, Collingwood

Butler, J. R. M. (Cambridge Univ.)

Foreman, Sir Henry

Hume, G. H.

Butt, Sir Alfred

Forestier-Walker, L.

Hunter-Weston, Lt.-Gen. Sir Aylmer

Button, H. S.

Foxcroft, Captain Charles Talbot

Hurd, Percy A.

Cadogan, Major Edward

Fraser, Major Sir Keith

Hutchison, G. A. C. (Midlothian, N.)

Inskip, Sir Thomas Walker H.

Paget, T. G.

Smith, Sir Allan M. (Croydon, South)

Jarrett, G. W. S.

Parker, Owen (Kettering)

Smith, Sir Harold (Wavertree)

Jephcott, A. R.

Pease, William Edwin

Somerville, A. A. (Windsor)

Jodrell, Sir Neville Paul

Pennefather, De Fonblanque

Somerville, Daniel (Barrow-in-Furness)

Johnson, Sir L. (Walthamstow, E.)

Penny, Frederick George

Spender-Clay, Lieut.-Colonel H. H.

Jones, Henry Haydn (Merioneth)

Percy, Lord Eustace (Hastings)

Stanley, Lord

Joynson-Hicks, Sir William

Perring, William George

Steel, Major S. Strang

Kelley, Major Fred (Rotherham)

Peto, Basil E.

Stuart, Lord C. Crichton

King, Captain Henry Douglas

Philipson, Mabel

Sueter, Rear-Admiral Murray Fraser

Kinloch-Cooke, Sir Clement

Pollock, Rt. Hon. Sir Ernest Murray

Sugden, Sir Wilfrid H.

Lane-Fox, Lieut.-Colonel G. R.

Pownall, Lieut.-Colonel Assheton

Sutherland, Rt. Hon. Sir William

Leigh, Sir John (Clapham)

Pretyman, Rt. Hon. Ernest G.

Sykes, Major-Gen, sir Frederick H.

Lloyd, Cyril E. (Dudley)

Price, E. G.

Terrell, Captain R. (Oxford, Henley)

Lloyd-Greame, Rt. Hon. Sir Philip

Privett, F. J.

Thompson, Luke (Sunderland)

Locker-Lampson, Com. O. (Handsw'th)

Raeburn, Sir William H.

Thomson, F. C. (Aberdeen, South)

Lorimer, H. D.

Raine, W.

Thorpe, Captain John Henry

Lort-Williams, J.

Rankin, Captain James Stuart

Titchfield, Marquess of

Lougher, L.

Rawson, Lieut.-Com. A. C.

Tryon, Rt. Hon. George Clement

Loyd, Arthur Thomas (Abingdon)

Reid, Capt. A. S. C. (Warrington)

Tubbs, S. W.

Lumley, L. R.

Remnant, Sir James

Turton, Edmund Russborough

Lynn, R. J.

Rentoul, G. S.

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

Macnaghten, Hon. Sir Malcolm

Reynolds, W. G. W.

Waring, Major Walter

McNeill, Ronald (Kent, Canterbury)

Rhodes, Lieut.-Col. J. P.

Warner, Sir T. Courtenay T.

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

Richardson, Sir Alex. (Gravesend)

Watson, Capt. J. (Stockton-on-Tees)

Margesson, H. D. R.

Richardson, Lt.-Col. Sir P. (Chertsey)

Watts, Dr. T. (Man., Withington)

Mason, Lieut.-Col. C. K.

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

Wells, S. R.

Mercer, Colonel H.

Roberts, Rt. Hon. Sir S. (Ecclesall)

Weston, Colonel John Wakefield

Mitchell, W. F. (Saffron Walden)

Roberts, Samuel (Hereford, Hereford)

Wheler, Col. Granville C. H.

Mitchell, Sir W. Lane (Streatham)

Robertson-Despencer, Major(Isigtn, W)

White, Lt.-Col. G. D. (Southport)

Molson, Major John Elsdale

Rogerson, Capt. J. E.

Wilson, Col. M. J. (Richmond)

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

Rothschild, Lionel de

Windsor-Clive, Lieut.-Colonel George

Morden, Col. W. Grant

Roundell, Colonel R. F.

Winterton, Earl

Moreing, Captain Algernon H.

Ruggles-Brise, Major E.

Wise, Frederick

Morrison, Hugh (Wilts, Salisbury)

Russell, Alexander West (Tynemouth)

Wolmer, Viscount

Morrison-Bell, Major A. C. (Honiton)

Russell, William (Bolton)

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

Murchison, C. K.

Russell-Wells, Sir Sydney

Wood, Major Sir S. Hill- (High Peak)

Nail, Major Joseph

Samuel, A. M. (Surrey, Farnham)

Woodcock, Colonel H. C.

Nesbitt, Robert C.

Samuel, Samuel (W'dsworth, Putney)

Worthington-Evans, Rt. Hon. Sir L.

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

Sanders, Rt. Hon. Sir Robert A.

Yate, Colonel Sir Charles Edward

Newson, sir Percy Wilson

Sanderson, Sir Frank B.

Yerburgh, R. D. T.

Nicholson, Brig.-Gen. J. (Westminster)

Sandon, Lord

Nicholson, William G. (Petersfield)

Shepperson, E. W.

TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs.

Norton-Griffiths, Lieut.-Col. Sir John

Simpson-Hinchilffe, W. A.

O'Neill, Rt. Hon. Hugh

Skelton, A. N.

Ormsby-Gore, Hon. William

Motion made, and Question, "That the Chairman do report Progress, and ask leave to sit again," put, and agreed to.—[ Sir W. Joynson-Hicks. ]

Committee report Progress; to sit again To-morrow.

Matrimonial Causes (Regulation of Reports) Bill

Ordered, That the Select Committee to consider the Matrimonial Causes (Regulation of Reports) Bill do consist of Eleven Members.—[ Colonel Gibbs. ]

Committee accordingly nominated of Lord Apsley, Sir Thomas Bennett, Mr. Cassels, Sir Evelyn Cecil, Mr. Dunnico, Mr. Hardie, Mr. William Jowitt, Mr. McCurdy, Sir Herbert Nield, Sir Arthur Steel-Maitland, and Mr. Warne.

Ordered, That the Committee have power to send for persons, papers, and records.

Ordered, That Three be the quorum.—[ Colonel Gibbs. ]

House of Commons (Gallery Accommodation)

Ordered, That a Select Committee be appointed to report whether improved arrangements can be made to obtain further accommodation in the Galleries of the House for Members of Parliament from the Dominions on a visit to this country, for the High Commissioners for the Dominions, and for the Ministers representing Foreign Countries.

Ordered, That the Committee do consist of Nine Members.

Committee accordingly nominated of Lieut.-Colonel Archer-Shee, Major Cadogan, Mr. Clynes, Brigadier-General Cockerill, Lieut.-Colonel Sir John Gilmour, Lieut.-Colonel Sir Edward Grigg, Sir Robert Hamilton, Sir James Remnant, and Mr. Snowden.

Ordered, That the Committee have power to send for persons, papers, and records.

Ordered, That Three be the quorum.—[ Colonel Gibbs. ]

Electricity (Supply) Acts

Resolved,

"That the Order made by the Electricity Commissioners, and confirmed by the Minister of Transport, under Section 7 of The Electricity (Supply) Act, 1919, constituting the South-West Midlands Electricity District, and establishing the South-West Midlands Advisory Joint Committee, which was presented on the 15th day of May, 1923, he approved [ Colonel Ashley. ]

The remaining Orders were read, and postponed.

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

Adjourned at Twenty - eight Minutes after Twelve o'Clock.