House of Commons
Tuesday, June 19, 1923
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
PRIVATE BILLS (Standing Orders not previously inquired into complied with),
Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bill, referred on the Second Reading thereof, the Standing Orders not previously inquired into, which are applicable thereto, have been complied with, namely:
Seaham Harbour Dock Bill.
Bill to be read a Second time.
PRIVATE BILLS [ Lords ] (Standing Orders not previously inquired into complied with),
Mr. SPEAKER laid upon the Table Report from one of the Examiners of Petitions for Private Bills, That, in the case of the following Bills, originating in the Lords, and referred on the First Reading thereof, the Standing Orders not previously inquired into which are applicable thereto have been complied with, namely:
Macclesfield Corporation Bill [ Lords ].
Chatham Corporation Bill [ Lords ].
Bills to be read a Second time.
Southern Railway Bill [ Lords ] (by Order),
Read a Second time, and committed.
Oral Answers to Questions
Questions
Safeguarding of Industries Act (Leather)
asked the President of the Board of Trade if an application has been received on behalf of tanners of box calf upper leather for assistance under the Safeguarding of Industries Act; and if, in view of the serious position of the industry in question, he will indicate as early as possible the decision of the Board on the application?
It has been the regular practice of the Board of Trade to refrain from giving information about the nature or scope of any complaint made under Part II of the Act unless and until it be referred to a Committee, but I can assure my hon. and gallant Friend that no avoidable delay will take place in coming to a decision on any complaint.
Merchandise Marks Bill
asked the President of the Board of Trade whether he has received any official intimation from the co-operative societies of their objection to the principle of the Merchandise Marks Bill; and, if so, whether any reasons are given for the objection?
I have received from the Co-operative Congress a resolution objecting to the Merchandise Marks Bill. The resolution refers to it as being "unworkable, vexatious, and protectionist in character."
Will the right hon. Gentleman reply to the latter part of the question?
I have, in so far as the Resolution contains any representation.
Imperial Economic Conference
asked the President of the Board of Trade whether, in the consultations now proceeding with industrial groups in the United Kingdom regarding the Empire Economic Conference, his Department could make a point of obtaining any direct information available from British manufacturers regarding the advantage to them, or otherwise, of the preferential tariffs of our Dominions?
I should be glad to receive any information on this subject which British manufacturers are in a position to supply. As I have already informed the House, I am in close touch through my Committee of Advisers with the principal organisations representing British industry and commerce, and I have no doubt that these organisations will furnish me with such information of the character referred to as they are in a position to supply.
Is not the whole of this information supplied by the Journal of the Board of Trade?
In general it is, but I agree with my hon. and gallant Friend who put the question that the more detailed information that can be obtained as to the great value of preference the better it is.
Patents (Applications)
asked the President of the Board of Trade the number of applications for patents now under consideration at the Patents Office which have been received within the past three months; the number received over three but not exceeding six months ago; the number received over six but not exceeding nine months ago; the number received over nine but not exceeding 12 months ago; and the number received over 12 months ago?
As the answer contains a number of figures, perhaps the hon. Member will allow me to circulate it in the OFFICIAL REPORT.
Following is the answer:
I assume the hon. Member's question refers to complete specifications still under consideration. The numbers are approximately as follows:
Received within the past three months 3,157 Received over three but not exceeding six months 1,650 Received over six but not exceeding nine months 600 Received over nine but not exceeding 12 months 120 Received over 12 months ago nil
I may add that applications accompanied by provisional specifications are in all cases dealt with shortly after receipt.
Wrecks (Marking)
asked the President of the Board of Trade whether the Conference appointed at the instance of the Board of Trade to consider the methods of marking wrecks has yet made its Report; and, if so, will the Report be published as a Parliamentary Paper for the information of shipowners and the seafaring community generally?
Yes, Sir. The Report of the Conference has been received, and arrangements are being made for it to be laid before Parliament, and published as a Stationery Office publication.
Oil Borings (Lothians)
asked the President of the Board of Trade whether he can state the result of the investigations regarding the existence of oil-wells in the Lothians; and whether, in the event of the results proving satisfactory, the Government will be prepared to grant financial assistance in the initial stages and exercise a measure of control?
Two bore-holes were put down in the Lothians for His Majesty's Government. No satisfactory indications of oil were met with in that at West Calder, but oil was struck at d'Arcy, and seven tons of oil were produced between May and November of last year. This well has since been taken over by the landowner, and the plant disposed of. With regard to the second part of the question, the Government is not prepared to spend any more money on this object, or to exercise any measure of control beyond that already provided for in the terms of the licences issued under the Petroleum Production Act.
Having regard to the great importance of oil in the industrial life of the nation, do the Government propose to pursue the policy of interesting themselves in this matter?
Has not enough money already been wasted trying to find oil in this country?
Has the landlord indemnified the State for boring holes in the land?
I do not think that very much damage has been done by these borings so far. Each boring cost about £50,000, and the amount of oil produced is about £30 worth.
In reference to the policy of the Government in this matter, is the hon. and gallant Gentleman aware that certain scientists are continuing their investigations into this matter?
I think that the Government are of opinion that enough money has been spent, and that they should not spend any more.
Is the hon. Gentleman aware that in the district referred to the substance which is the chief indication of oil occurs, and will the Government not continue the investigations?
No. The investigations which have been carried out show that there is no reasonable chance of getting a return.
Lifeboat Drill (Examination Fee)
asked the President of the Board of Trade whether he is aware that seamen are being charged a fee when undergoing examination for lifeboat drill; whether there is any authority for this charge; what is the cost of such examination and what is the revenue from fees received annually; and will he consider the desirability of conducting the examination without imposing any fee?
Examinations for certificates as lifeboatmen were instituted in 1915, and a fee of 2s. is charged for each examination. The examination is voluntary, and there is no statutory provision either for the examination or for charging a fee. It is estimated that the fee about covers the cost of the examination. The amount received was £382 last year, and is expected to be considerably more this year. The demand for these examinations is increasing, and I am afraid that under present conditions they could not be continued if they were not self-supporting.
Is it the case that there is no statutory authority for the imposition of this fee, and that the interests concerned, particularly the seamen, were not consulted, and why has it been imposed?
Can the right hon. Gentleman assure us that the seamen have already got good value for the 2s.?
The first point would be relevant if the fee were compulsory, but it is voluntary. It is a voluntary act on the part of the seamen to go in for this examination, and as it is a voluntary matter it is not unreasonable that there should be a fee. In answer to my Noble Friend, the answer is yes. Undoubtedly the men who have passed this examination are much more valuable as members of a crew, and it increases their chance of getting appointments.
Is the right hon. Gentleman aware that the shipowners, particularly on the trans-Atlantic lines, are compelling seamen to pass this examination, and making it a condition of employment that a certificate shall be be obtained? Therefore is it not compulsory?
The hon. Member should put that question down.
Cotton (American Standard)
asked the President of the Board of Trade if he is aware that according to the law of the United States after 1st August this year it will be illegal for any American citizen to sell cotton based on any foreign standard; and does he propose taking any action in the matter?
I have been in touch with the Liverpool Cotton Association, and arranged with the Secretary of State for Foreign Affairs for assistance to be given by His Majesty's Embassy at Washington to a deputation from the association which recently visited the United States, in order to discuss this matter. I trust that a solution of the problem may be found as a result of the conferences which have been taking place at Washington, and of which my hon. Friend has no doubt seen the newspaper reports.
Motor Spirit
asked the President of the Board of Trade whether he can give the total number of gallons of motor spirit, including benzol, used in the British Isles in 1914 and in 1922; and the total number of gallons of home-produced benzol used as motor spirit in 1914 and in 1922, respectively?
The answer contains a number of figures, and, with the hon. Member's permission, I will have it circulated in the OFFICIAL REPORT.
Following is the answer:
As nearly as can be estimated, the quantity of motor spirit, including benzol, consumed in the British Isles in 1914 and 1922 was as follows:
Gallons. 1914 … … … 141,723,127 1922 … … … 306,502,753
Gallons. 1914 … … … 17,713,227 1922 … … … 11,155,756
It may be added that the figures for 1913, the last complete pre-War year, which may interest the hon. Member, were, respectively:
Gallons. Motor spirit … 117,524,421 Including benzol … 12,265,411
The consumption has been calculated by adding together the imports of petrol and benzol, and the home production of Scotch shale spirit and benzol, and deducting the exports. The figures for benzol used as motor spirit are necessarily only approximate.
War Bond Policies
asked the President of the Board of Trade whether, in view of the facts disclosed by the recent County Court proceedings against the Prudential Assurance Company, where judgment was given against them for obtaining money by fraudulent misrepresentation in connection with the issue of their 5 per cent. War Bond policies, and in view of the impossibility of many of the holders of these lapsed policies affording the expense of similar proceedings in the Courts, the Government will take the necessary steps to enable these policy holders to lay their cases before the Industrial Assurance Commissioner in order that he may take legal proceedings on their behalf where necessary?
The answer is in the negative.
Will the hon. and gallant Gentleman make representations to his right hon. Friend that this is a case for the Public Prosecutor to take action, in view of the serious scandal disclosed?
I will call my right hon. Friend's attention to the matter.
Ruhr Occupation
British Trade
asked the President of the Board of Trade whether his attention has been drawn to the most recent statements in the British Chamber of Commerce at Cologne on the obstacles placed in the way of British trade, in which it is stated that the difficulties are principally due to the French authorities; and what action he is taking in the matter?
I would refer to the reply given to the hon. Member for Stoke Newington on 14th June. As regards the Ruhr area, I have since learnt that licences are being issued for the export of goods contracted for before 1st February.
Is the right hon. Gentleman aware that though licences are issued it is impossible to get the goods and that hundreds of thousands of pounds worth of goods have been held up for months?
No. I have had information from the High Commissioner and from firms on the point. I saw a letter from a firm only yesterday saying that the goods were now on board, and that the licences had been obtained and the goods shipped, and the firm expressed gratitude for what had been done.
Are not these goods contracted for before the occupation, and has there not been a delay of many months already?
It is precisely because delay has taken place that there has been negotiation. I gathered that my hon. and gallant Friend was suggesting that these goods had not been and could not be shipped.
Is there not a new tax imposed by the French on goods coming to Cologne from unoccupied territory?
I must have notice of that question.
Customs (British Goods)
asked the Chancellor of the Exchequer whether he has any estimate of the amount of money that has been collected by the French customs stations in the occupied districts of the Ruhr on the property of British merchants entering the Ruhr; and whether any further progress has been made in the negotiations as to how this money is to be disposed of?
I have nothing to add to previous replies on this subject.
What steps are being taken to pursue this very old and very important subject?
I have taken such steps as I have been able to make myself fully acquainted with the present position. As the hon. and gallant Gentleman knows, there are difficulties in the way.
Does the right hon. Gentleman mean that he really does not know how much money has been collected under the new customs régime ?
No. What I said was that the whole question was one of very considerable difficulty.
Is it not an intolerable state of things that this money should be mulcted from British merchants and the Government cannot tell us what they are doing in the matter? Again and again I have put the question and get no answer from the Government Benches except that they are taking steps.
British Vessels (Alien Crews)
asked the President of the Board of Trade if he is aware that the s.s. "Lothar Bohlen," flying the British flag and registered in London, recently arrived at the port of Marseilles entirely commanded, officered, and manned by aliens; and what steps the Board of Trade propose to take to ensure that vessels registered in the United Kingdom, and having the right to claim protection of the British Empire, are manned by British subjects?
My attention had not previously been called to this case, but I would remind my hon. and gallant Friend that the statutory restriction as to the employment of aliens (other than ex-enemy aliens) does not apply to ships employed habitually outside the United Kingdom.
Does not the right hon. Gentleman agree that it is somewhat of a scandal that these ships, entirely manned by aliens, should be able to claim the protection of the British flag?
Is not there a large number of ships sailing from British ports which carry alien crews apart from British officers?
With regard to ships trading in English ports, we carry out the full statutory obligation. In reference to the point raised by my Noble Friend, if the Act were altered the result would be that these ships would be transferred to another flag.
British Army
Blandford Camp (Unskilled Labour)
asked the Under-Secretary of State for War, if he is aware that the foreman in charge of the work now in progress at Blandford camp is engaging unskilled labour other than through the Blandford Employment Exchange; that strangers from a distance are being employed in preference to local men; and that there are 80 unskilled men on the books at the local Employment Exchange; and whether the Minister will take steps to see that instructions are issued so that men registered at the Blandford Employment Exchange may be given the opportunity of obtaining employment at the camp when suitable openings occur?
The hon. Member is, I think, under a misapprehension. I find that out of 51 men recently engaged for engineer services at Blandford, 36 lived in Blandford itself, and the remaining 15 in villages within four miles distance. All these men, about 80 per cent. of whom are ex-soldiers, came to the camp office to offer themselves for employment, and in these circumstances it was not necessary to apply to the local Employment Exchange. The Employment Exchange will, however, be applied to if necessary.
Is the hon. Gentleman aware that the men who had employment in other places have been transferred to employment in the camp, and that local men are unemployed?
If the hon. Member will give me particulars, I shall be glad to look into them.
War Medals (Battle Clasps)
asked the Under-Secretary of State for War when it is intended to issue clasps to medals for the actions of the Great War or to authorise them being worn; and if he is aware that they have been authorised in the Navy for years?
I much regret that owing to the present financial stringency it will not be possible to proceed with the proposal to issue these battle clasps. The answer to the last part of the question is in the negative.
War Memorial, Ypres
asked the Under-Secretary of State for War whether British labour will exclusively be employed in the building of the war memorial to be constructed by the Imperial War Graves Commission at Menin Gate, Ypres?
The contract has been placed with a British firm, but I do not think it would be right or practicable in such cases entirely to exclude Belgians from obtaining work on war memorials under construction on their own soil, and it has not been made a contract condition that only British labour shall be employed. I have, however, every sympathy with the object which the hon. Member has in view, and I am in touch with the Ministry of Labour with a view to facilitating as far as possible the employment of British labour by contractors working for the Imperial War Graves Commission.
In view of the fact that in certain of the war memorials the material is not British-made, will the hon. Gentleman take steps to see that British material is used in this case?
I would like notice of the question, but I think that British material is used.
Temporary Commissions
24 and 25.
asked the Under-Secretary of State for War (1) what were the numbers of pre-War warrant officers, non-commissioned officers, and privates who were given Special Reserve, Territorial, or temporary commissions during the War;
(2) what were the numbers of serving regular soldiers who were granted special, Reserve, Territorial, or temporary commissions between 4th August, 1914, and 3rd May, 1918?
I regret that I am not in a position to give these figures without extensive research, the cost of which would not, I think, be justified.
Would it be possible to give any approximate indication of the number?
I am afraid that there is no material at all. We might give the figures of the pre-War pensioners, but not without very costly inquiry and examination of records would we be able to give the figures asked for.
May I have the figures of the pre-War pensioners?
Yes, if the hon. Member will put down a question.
Ordnance Stores (Provisions) Department
asked the Financial Secretary to the War Office whether he is aware that about 100 members of the staff of the Ordnance Stores (Provisions) Department were transferred from Woolwich to Pimlico in February last; that 75 of these resided in the Woolwich area and have to travel to Pimlico each day at a cost to them of about 7s. 6d. per week; that this extra cost is borne by the workers themselves without a corresponding increase in the wages paid to them; and whether, in these circumstances, he will take steps to remove the financial disadvantages from which these employés at present suffer?
I am aware of the circumstances. I regret that I cannot accept the principle that wages should be increased on account of the distances travelled by the employés concerned. In the present case the staff were informed in advance that transfer would be conditional upon acceptance by the individual of full liability for travelling expenses. In view, however, of the short notice given of the move, it was decided, as a special concession, to allow to employés with dependants half the minimum necessary expenses for a period of three months.
Seeing that the Treasury admitted that there was a hardship involved and gave three months' assistance, will the hon. Gentleman not consider the possibility of extension until houses near the work can be obtained?
I am afraid that it would be difficult to do that. That special concession was made in order to give people time to make arrangements. Of course, a great many of them are single people who can quite well move their lodgings from Woolwich to nearer Pimlico.
Will the hon. Gentleman take into consideration the condition which requires travelling by the cheapest route and entails upon men from Woolwich nearly two hours' journey by tram instead of by railway, and can he make an alteration in that arrangement?
I do not understand what the hon. Gentleman means. I cannot make fresh travelling arrangements between Woolwich and Pimlico. It must be either tram or railway.
Army Accounts
asked the Under-Secretary of State for War whether, having regard to the Report by the Comptroller and Auditor-General on presenting the Army accounts, any individual or individuals have been held responsible and dealt with; and whether it is proposed to hold any inquiry into the matters?
The Report in question stands referred to the Public Accounts Committee, which will no doubt make full inquiry into all the matters in question and report thereon to the House in due course.
May I have a reply to the first part of my question?
Before the hon. Member replies, may I ask whether grave inconvenience would not be caused if his Department gave any opinion on this matter, which has been referred to the Public Accounts Committee and on which that Committee has now to report, after due inquiry?
asked the Under-Secretary of State for War if the Committee of experts, sitting under the chairmanship of Sir Herbert Lawrence, and which Committee was set up to consider the system of cost accounting in the Army, has yet made its Report; and, if so, will the Report be made public, and when?
The answer to the first part of the question is in the negative, and the second part does not therefore arise.
asked the Under-Secretary of State for War what were the instructions given to the Committee of experts sitting under the chairmanship of Sir Herbert Lawrence; and whether such Committee is considering the whole question of the War Office financial administration or merely considering the question as to whether or not the present cost accounting system should be continued?
The terms of reference to this Committee are as follow:
"To inquire into the system of administration of, and accounting for, Army expenditure and into the use of accounts for the purpose of control, and to report what changes, if any, consistent with the requirements of Parliamentary accounting, are desirable in the interests of economy and efficiency."
asked the Under-Secretary of State for War, whether he will now consider, in view of the recently-published Report of the Comptroller and Auditor-General upon, the Army Accounts, 1921–22, and upon the store accounts in the Army, the question of recruiting, for the Royal Army Pay Corps, the Corps of Military Accountants, and the local audit staff, only qualified professional accountants?
Subject to any Report that the Public Accounts Committee may make after examining the accounts in question, I find nothing in them, or in the Report of the Comptroller and Auditor-General, to lead to the conclusion suggested.
United Services Fund
asked the Under-Secretary of State for War if his attention has been drawn to the remarks of Justice Bailhache, at the Carnarvonshire County Court Assizes on 4th June last, on the case of W. F. Roberts, secretary of the Penmaenmawr Committee of the United Services Fund, in the course of which he drew attention to the fact that the headquarters of this fund seem to have exercised no control whatever in the distribution of the money in this case, and that they were very lax in granting money to anyone whose reliability had not been proved, and that as far as he could see there was no local committee at all at this place; and, if so, will he order an inquiry to be held into the general administration of the United Services Fund which has vast sums at its disposal for distribution to sufferers from the War?
The attention of the Charity Commissioners has not until now been drawn to the remarks referred to. An ex-service benevolent committee was formed in Penmaenmawr to deal with local claims for assistance, and this committee elected W. F. Roberts as secretary. Upon its being discovered at the headquarters of the Fund that a fictitious claim, supported by a forged medical certificate, had been put forward by him, full investigation was at once made, resulting in his prosecution. A new committee has been set up. In the view of the Commissioners a case for inquiry into the general administration of the Fund has not been made out.
Is it not a fact that a large sum of money has been given from this fund for a domestic service training centre?
I would like notice of that question.
What is the result, if any, of the prosecutions?
Three convictions. There are over 3,000 sub-committees and, so far, only three officials have been convicted for fraud.
Scotland
Secondary Education
asked the Solicitor-General for Scotland whether he is aware that in numerous instances in Scotland parents are refusing to pay fees for their children in secondary schools on the ground that the Education (Scotland) Act, 1918, makes it obligatory on education authorities to provide secondary education without payment of fees; whether the Scottish Education Department was consulted before sheriff court summonses were served upon such parents; and whether the Department proposes to take action in regard to those areas where free secondary education is not provided?
The reply to the first part of the question is in the negative. It is the case that one authority consulted the Department regarding a difficulty of the kind suggested by the hon. Member, but the Department have no knowledge, direct or indirect, which would lead them to believe that legal proceedings have been taken or are pending in that or in any other instance. As regards the third part of the question, I can only remind the hon. Member of the answers given him on 6th March, 27th March and 10th April last.
Would the hon. and learned Gentleman say whether the Department stated that in the case put before them it would be competent to issue sheriff court summonses?
I shall be glad to afford the hon. Member an opportunity of looking at the correspondence at the Scottish Office.
Did the Department advise them to issue these summonses?
The Department took no part in the matter. It was obviously a matter for the local education authority to consult its own legal advisers upon. To clear up the thing the best course would be for the hon. and gallant Gentleman to come to the Scottish Office and see the correspondence.
Will the hon. and learned Gentleman assure us that the Department will take steps to see that the education authorities in Scotland carry out their obligations to provide free secondary education, as laid down by the Act?
I can assure my hon. Friend that they are doing so. If there is any case in which they are not, the best thing is to bring it to my notice.
Is it the case that in Scotland children are compelled to attend secondary schools?
Yes.
Seditious Speeches (T. Hitman)
asked the Solicitor-General for Scotland if he is aware that Thomas Hitman was, in Glasgow on the 13th instant, sentenced to 15 months, with hard labour, for uttering seditious speeches; that he pleaded not guilty; that he denied having uttered statements alleged against him; that he stated himself to be against violence; and that the sheriff, in passing sentence, said it was very unfortunate that people were so gullible as to be led away by a man like accused who was an ignorant man; and will he take what steps may be necessary to have this sentence reduced?
My Noble Friend has asked for a report on this case. When it has been received and considered he will communicate with the hon. Member.
Is it not a fact that most of those who make seditious speeches are ignorant men, and is there any reason for allowing them to be made?
Is the hon. and learned Gentleman aware that this man served with the Army for over four years during the War, and is not a Scotsman, but an Englishman, and will these facts be taken into consideration?
As I have said, my Noble Friend has asked for a report, and he will communicate with the hon. Member who raised the question when he receives it.
Is it not the case that the Government are now paying a pension of £5,000 a year to a gentleman who gained his reputation by making seditious speeches?
Rent Arrears Notices Glasgow
asked the Solicitor-General for Scotland if he is aware that house factors in Glasgow are issuing to their tenants notices claiming all arrears of rent to be paid at once, without regard to either amount or time to pay, which they are allowed under the Rent Restrictions (Notices of Increase) Act, 1923; and what steps he will take to stop this action?
The answer to the first part of the question is in the negative. As regards the second part, I would refer the hon. Member to the provision made in Sub-section (4) of Section 2 of the Act for the determination of any question as to the amount of arrears due under the Act from a tenant, or the amount of the instalments by which such arrears are to be paid off.
Trawling Committee (Sittings)
asked the Under-Secretary to the Scottish Board of Health whether it is intended that the Trawling (Scotland) Committee shall hold a sitting in Shetland?
I am informed that the Committee do not intend to sit in Shetland, but they propose to hold a sitting at Kirkwall on Wednesday the 27th June for the hearing of witnesses from Orkney and Shetland.
Will the hon. and gallant Gentleman use his influence with the Committee so that they may sit in Shetland, a part of the country which has suffered more from the depredations of these trawlers than any other except perhaps the Island of Lewis?
Obviously, it must be left to the Committee to decide where they think they can best collect evidence. I would remind the hon. Member that it is also necessary to choose some point which is easy of access by the people who are interested in giving evidence—some central point.
Is it any easier to attend Kirkwall than Shetland?
Will the hon. and gallant Gentleman's Department intimate to these people, a reasonable time in advance, the various centres at which they propose to meet and take evidence?
These have been published in the papers and in the trade journals as well. I have a cutting here from the "Glasgow Herald" of 15th June wherein the complete itinerary as set out.
asked the Under-Secretary to the Scottish Board of Health whether the Trawling Commitee appointed by the Secretary of Scotland will visit the various centres of the fishing industry along the coasts of Scotland with a view to taking evidence; whether due notice will be given of these sittings in each district; whether the various fishermen's and other associations concerned have been communicated with, with a view to evidence being tendered; and whether an opportunity will be afforded to any persons interested to appear before the Committee and give evidence?
I am informed that the Committee will visit a number of centres for the purpose of hearing evidence. A notice inviting persons who desire to give evidence to communicate with the Secretary of the Committee has been published in the newspapers and in the trade journals. Communications have also been sent to the principal Scottish fishery associations. Sittings during the present month at a number of centres have been announced, and any further arrangements will be duly intimated. The hon. and learned Member will therefore see that a full opportunity has been afforded to interested persons to tender evidence.
In view of the fact that no centres on the West Coast of Scotland are to be visited, will the hon. and gallant Gentleman provide facilities for fishermen on that coast who are necessarily very poor, to enable them to appear in the most convenient eastern centres visited by the Committee?
If my right hon. Friend consults the itinerary, he will see that sittings are to be held in Mallaig and Campbeltown.
Will this Scottish Committee on Trawling visit any English centres and hear the English point of view, so that they may not get an entirely one-sided view?
In view of the fact that there are 32,000 people on the Island of Lewis alone who are directly and indirectly interested in fishing, will the hon. and gallant Gentleman see that one sitting, in any case, will take place in Stornoway?
I do not wish to take up the time of the House in reading this itinerary. One sitting has been arranged to take place in Stornoway, and the itinerary was published in the "Glasgow Herald" on 15th June.
Fisheries (Aerial Observations)
asked the Under-Secretary to the Scottish Board of Health whether he can now make any further statement as to the contemplated experiments with the object of the location of fish shoals by observation from aeroplane in the waters round the North of Scotland?
My Noble Friend the Secretary for Scotland regrets that it is not practicable to make arrangements for the conduct of such experiments in the area mentioned during the present season.
Will it be possible to make these experiments later on?
It is a question of arrangement with the Air Ministry, and so far it has not been found practicable to arrange for these experiments.
Small Holdings (Moray and Nairn)
asked the Under-Secretary to the Scottish Board of Health how many applications have been received for small holdings in the counties of Moray and Nairn since 1918, and how many cases have been settled to this date?
Since 1918, inclusive, the number of applications of all kinds received from the two counties referred to is 38, of which 16 have since been withdrawn. Applicants have been settled in four cases.
Agricultural Rates Relief (Grant)
asked the Under-Secretary to the Scottish Board of Health whether he will state with regard to the sum, estimated at £480,000 a year, to be provided for the relief of local rates in Scotland under the Agricultural Rates Bill, how much of that sum would be applied under the Bill towards relief of county rates and how much towards relief of parish rates, on the basis of the amount of these rates for the year 1922; and in each case how much would be applied towards relief of owners' rates, and how much towards relief of occupiers' rates, after making allowance for the proportion of the occupiers' rates to be deducted from their rent?
It is not possible with the data available to give an exact apportionment of the estimated grant of £480,000 between county and parish rates, but on the basis of the average rates levied by county councils and parish councils in 1920–21—of which particulars were given in reply to the hon. Member's question of 12th instant—the respective shares may be put approximately at pay nearly three-fourths of the total county rates on agricultural lands and heritages, and will, it is estimated, receive, after the adjustments between owner and tenant are made, about two-thirds of the grant relief in respect of their rates—that is, they will receive a less amount of relief in proportion to their rate burden than the agricultural occupier. In the case of the parish rates, the ultimate apportionment of the grant relief between owners and occupiers in different areas will be affected by the varying circumstances in each area, with respect to the amount of the so-called "shortage" arising in connection with the Agricultural Rates (Scotland) Act, 1896, and an approximate estimate of a general character cannot be given from the data presently available. In the example in the White Papers—owners and occupiers may be said to share equally in the grant relief——
"Hear, hear!" and "Speech!"
It is necessary that the reply should be a long one, in order to clear up this matter. It may be stated generally that the owners' proportionate share will be less than in the case of the county rates, and less also in relation to their rate burden in respect of parish rates than in the case of occupiers.
Am I to understand that of the £480,000—so far as it applies to county rates—two-thirds will go to the relief of the owners' rates and only one-third to the relief of the occupiers' rates, and that with regard to the parish rates the proportion will be approximately the same?
I think the hon. Member had better wait and see the answer in print.
May I ask further——
I think we had all better wait and see that long answer in print.
Highlands Reconstruction Association (Memorial)
asked the Under-Secretary to the Scottish Board of Health when he will be in a position to make a statement in reply to the memorial recently submitted to the Secretary for Scotland by the Highlands Reconstruction Association, Inverness, with regard to matters directly affecting the Highlands and Islands?
The memorial referred to is at present under consideration, and my Noble Friend hopes to be able to reply to it shortly.
Transport
Arterial Roads Surrey
asked the Parliamentary Secretary to the Ministry of Transport why the work on the Kingston and Sutton (Surrey) arterial roads has not been started, although it was approved by the Surrey County Council in January of this year; whether the original total estimate of cost was £450,000; what is the figure of the lowest tender received upon the specification drawn by the Ministry; and when the work will be commenced?
Preparations for the initiation of these schemes are now in an advanced stage, but having regard to negotiations still in progress with certain local authorities and contractors, I shall not be in a position to give a detailed reply to the points raised in the hon. Member's question until a week or so has elapsed.
Coal Transport Cost
asked the Parliamentary Secretary to the Ministry of Transport whether he has any information as to the relative cost of transport per ton-mile in English currency for carrying coal by rail in Germany and this country at the present moment, or for some recent date?
The average distance over which coal, coke, and patent fuel was conveyed by railway in Great Britain in December, 1922, was 42·13 miles, the average rate charged was 3s. 9d. per ton, and the average rate per ton per mile was 1·07d. I have no recent information as to the charges in operation for the transport of coal by railway in Germany.
Barrow-Carlisle Main Road
asked the Parliamentary Secretary to the Minister of Transport whether he has had brought him any proposal for the construction of a main road from Barrow to White-haven and Carlisle, by way of Askam and Millom; and whether, seeing that such a scheme could easily be carried out, through the abundance of iron slag in the district, and such a road would shorten the road journey now existing by 12 miles, and in the interests both of the relief of unemployment and of better transport facilities, he will investigate a project of this nature without delay?
The proposal to which the hon. Member refers has not been brought before my Department, but should the responsible highway authority submit such a, scheme, it shall receive careful consideration.
Post Office
Wireless Stations
asked the Postmaster-General whether adequate provision by condition and otherwise has been made in connection with the new high-power wireless station in Wiltshire about to be erected by the Marconi Company so that it may be so designed and used as to prevent interference with broadcasting?
The conditions on which the new high-power stations of the Marconi Company will be worked have not yet been settled, but such steps as are possible will be taken to prevent interference with broadcast receiving apparatus. It is, however, unlikely that such interference can be avoided in the immediate vicinity of the stations.
asked the Postmaster-General whether the traffic at the Leafield wireless station after 8 p.m. is used exclusively for British official wireless news and American Press news of a very general character; and whether, having regard to the nature of this traffic and the fact that at two other times of the day British official news is broadcasted, this traffic after 8 p.m. can be discontinued in the interests of those in England interested in broadcasting and in the interests of economy?
The traffic transmitted from the Leafield wireless station after 8 p.m. includes telegrams for Egypt and for ships at sea, in addition to the items mentioned by the hon. Member. The traffic as a whole is of an important and remunerative nature, and its discontinuance for the purpose of preventing interference with broadcast reception in the immediate vicinity of the station, where, unfortunately, interference is unavoidable, would not be justified.
Is the hon. and gallant Gentleman aware that interference is experienced not only in the immediate vicinity of the station, but very largely outside under certain conditions?
I will call my right hon. Friend's attention to that question.
asked the Postmaster-General when he expects that a definite settlement will be reached with regard to the size of the proposed new Government wireless station; where it is to be situated; and what services will be conducted from it?
My right hon. Friend hopes that a definite settlement on these points will be reached shortly.
Is the hon. and gallant Gentleman aware that the same answer has been given for the last 13 years, and is he aware that this country is behind practically every other country in Europe, with the exception of Turkey, in regard to this question?
German Postcards
asked the Postmaster-General whether he will take measures to stop the delivery by the British Post Office of postcard advertisements from Germany advertising indecent photographs, the receipt of these postcards causing scandal and disgust in the houses where they are delivered?
Yes; and my right hon. Friend will be glad if the hon. Member will send him any such card which may be brought to his notice.
Is it necessary in a case of this kind to wait till Members of this House send such postcards to the right hon. Gentleman? Is the Post Office unable to take action on its own authority?
My right hon. Friend will appreciate the assistance of my hon. and gallant Friend.
Have any cards of this character been brought to the hon. and gallant Gentleman's notice?
They would not be brought to my notice. I am merely answering for my right hon. Friend.
Mails (Grants to Shipping Companies)
asked the Chancellor of the Exchequer the names of the shipping companies at present carrying overseas mails for His Majesty's Government, and the amount of the financial grant made to each for the last period for which figures are available?
My right hon. Friend has asked me to answer this question. The Post Office Estimate, which is published each year, contains a full list of the Post Office Packet Services and of the amounts paid in connection with them. If the particulars in the Estimate are not in sufficient detail for the purpose which the hon. Member has in mind perhaps he will communicate with me.
Can the hon. and gallant Gentleman say whether the subsidy provided imposes any condition other than the carrying of mails?
Perhaps the hon. Member will put that question to the Postmaster-General.
Can the hon. and gallant Gentleman say where is the Postmaster-General?
At Ascot.
He ought to be here.
British Broadcasting Company (Musical Programme)
asked the Post-mast-General whether he will use his influence with the London station of the British Broadcasting Company to provide a musical entertainment which will appeal to a wider section of the public?
I will bring the hon. Member's question to the notice of the Committee which is considering the organisation of broadcasting.
Will the hon. and gallant Gentleman take care that broadcasting is not used for political propaganda?
Boy Messengers
asked the Postmaster-General, in view of the fact that approximately 50 per cent. of the vacancies for postmen are given to Post Office boy messengers, whether he will, as far as possible, assist ex-service men's families by giving the positions of messengers to the children of ex-service men?
In view of the importance of securing the most suitable recruits for the public service, my right hon. Friend regrets that he does not see his way to impose the suggested restriction upon the selection of candidates for boy messengerships?
Old Age Pensions
asked the Chancellor of the Exchequer whether, in view of the fact that the cost of maintaining non-naturalised persons over 70 years of age, who have no adequate means of support, falls upon the local rates, he will consider an Amendment of the Old Age Pensions Acts whereby those who have been resident in this country for 20 years or more may, under certain conditions, be admitted to the benefits of the Old Age Pensions Acts?
No, Sir. I see no reason to doubt the wisdom of the conclusion arrived at in this matter by the Committee of 1919.
asked the Financial Secretary to the Treasury whether he will state the method of arriving at the computed independent income of Mrs. Edwards, widow of ex-Inspector Edwards, late of the Borough of Barnstaple Police, to whom an old age pension has been refused except to the amount of 4s. a week; whether the fact that she is being supported by her son-in-law, Mr. H. J. Vodden, 8, Park Avenue, Wood Green, is taken into account; and whether he is aware that Mrs. Edwards receives no pension from her late husband's service in the police force?
In computing the means of Mrs. Edwards there were taken into account her investments, a freehold house which she owns and occasionally occupies and the partially free board and lodging provided for her by her son-in-law. It has not been suggested that she was in receipt of a pension.
Is it not a fact that the savings of the late husband produce £8 a year and, taking into consideration the annual value of the house, the total receipts would only be £19 per annum. Is the Noble Lord not aware that the son-in-law pays the rates, and do I understand him to say that the value of the board and lodgings is computed as part of the widow's income?
That is computed as part of her income. If the hon. Member would like to see the calculations I shall be very pleased to let him see them.
Is not the object of granting these pensions to prevent these people being a burden to their relatives?
Will the Noble Lord take some steps to abolish this disqualification?
I am afraid that point does not arise here.
Royal Mail Steam Packet Company (New Ships)
asked the Chancellor of the Exchequer the total estimated cost of the three ships which are being built for the Royal Mail Steam Packet Company, and if a time limit is placed on the period under which they will be built?
The total estimated cost of the three ships is approximately £3,000,000, in respect of which the guarantee of the British Government covers a maximum sum of £2,300,000, being the cost of materials bought in Great Britain. Work on one of these ships has already started, and it is expected that the whole will be completed in less than two years. It is a condition of the guarantee that the work should be proceeded with with the greatest possible expedition.
In view of the previous answer given by the right hon. Gentleman, to the effect that the work is to be carried out in Great Britain, and seeing that the total cost is now given as £3,000,000 and your loan is £2,300,000, how can the work be carried out in Great Britain if the three ships are to be built in Belfast, leaving only £700,000 for the building of the three ships in Belfast?
If the hon. Member carefully studies the answers I have given, he will see that this answer is quite consistent with the other. The loan which we guarantee is in respect of work which will be done in Great Britain, and in Great Britain only. The materials are to be bought here and will be shipped to Belfast, and what happens to them there, or who pays for them there, has nothing to do with this particular loan.
But how can the work be done in Great Britain? Has the right hon. Gentleman not seen the reports in the Press, in reliable newspapers, that the keels are to be laid down in Belfast?
It is quite true that the keels are being laid down in Belfast, but the plates, and the machinery, and so forth for the ships are being made in Great Britain.
But does not the right hon Gentleman——
Will the right hon Gentleman——
I must ask hon. Members to put any further question on the Paper.
rose ——
called upon Lieut.-Commander Kenworthy to put the Question standing next on the paper.
Mr. Speaker, I——
Order! [ Interruption. ]
This is a very serious matter, as far as the Clyde is concerned.
Name him!
The hon. Member for Dumbarton Burghs (Mr. Kirkwood) must remember not to be on his feet when I am standing. It is impossible to conduct the business of the House under any other conditions. I have asked hon. Members to put any further questions on this subject on the Paper, and I cannot now entertain further questions on this point.
What about those fellows opposite howling all the time?
Several rose ——
I cannot entertain any other questions on the subject which are not on the Paper.
On a point of Order, Mr. Speaker. Is it not possible for an hon. Member on this side of the House to endeavour to put a perfectly legitimate supplementary question without being subjected to a hooligan outbreak on the other side of the House?
There was no noise at all until the hon Member for Dumbarton Burghs remained on his feet while I was standing.
No, Sir.
Lieut.-Commander Kenworthy.
While you were sitting, Mr. Speaker, hon. Members opposite were insulting you. [ Interruption. ]
On a point of Order. May I just say that my point was this? I had no intention of putting a supplementary question. Had I got leave to speak, I only wished to state that I intended to give notice that at the first opportunity I should raise the matter on the Adjournment, but the hooligans on the other side——[ Interruption. ]
At the end of Questions ——
I beg to ask leave to move the Adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely, "the decision of the Government to adopt the recommendations of the Trade Facilities Advisory Committee, to give a guarantee in respect of the cost of building outside this country of three ships for the Royal Mail Steam Packet Company."
That is not a Motion which I can accept under Standing Order No. 10. This is not the proper time to raise the matter. The action taken is in pursuance of an Act of Parliament which set up a committee to deal with these matters.
We have only to-day had the facts as to the apportionment of the money on the work in Ireland and the materials, and may I put it to you, Mr. Speaker, that although this matter is governed by an Act of this House placing the matter under a Committee, nevertheless we do maintain some control over that Committee in that we have a periodical review of their grants; and further, there is a direction to the Committee that the work is for materials, etc., in this country, and cannot we raise it as a matter of urgent and definite public importance?
I do not think that this is the proper time. The only point I am dealing with now is that it does not come under Standing Order No. 10.
May I put this point to you, Mr. Speaker? We were only made aware to-day that the keels of these ships were definitely being laid in Belfast, and we only knew officially the sum of money that these ships would cost, namely, £3,000,000, and in view of the fact that only £700,000 is allocated for the building of these ships in Belfast, and as therefore it is impossible for this sum to be spent in this country, do you not think, Mr. Speaker, in view of these facts, that it is not an urgent matter that the Government should violate a promise that they have given to this House to have these ships built in this country?
I myself heard the information given last week.
Lausanne Conference
asked the Prime Minister whether he can make any statement on the progress of the peace negotiations with Turkey at Lausanne?
No, Sir; I must adhere for the present to the reply given to my hon. Friend the Member for Barrow-in-Furness (Mr. D. G. Somerville) on 2nd May.
Unemployment (Middlesbrough)
asked the Prime Minister whether, seeing that he has agreed to set up a small Committee to inquire into the causes of the serious unemployment in Nottingham, he will set up a similar Committee to inquire into the causes of unemployment in Middlesbrough, where there is more than double the percentage of unemployed than in Nottingham?
The Committee to which the hon. Member refers is being appointed to inquire into the causes of unemployment in certain particular industries which have submitted to the Board of Trade evidence, which, in the opinion of the Board, discloses exceptional circumstances and merits detailed and impartial examination. Though one of the industries is centred at Nottingham, the Committee is not bring appointed to inquire into the causes of general unemployment in a particular locality, and I do not think an inquiry of such a character would serve any practical purpose.
Will the right hon. Gentleman say why in the shipbuilding industry, where there is 35 per cent. of unemployment, there is to be no inquiry, while in the lace industry, where the unemployment is only 11 per cent., there is preferential treatment?
I understand that the question of the lace industry has been under consideration by the Board of Trade for some time. I am not aware whether the condition of the other industry is as the hon. Member suggests.
German State Enterprises
asked the Prime Minister whether he is aware that the German floating debt has been increased by 1,146,394 million marks during the last financial year, and the German State railways run at a loss of 1,014,128 million marks during the same period; and, in view of the cumulative effect of these losses on reparations, whether the British Government will press for German State enterprises to be handed over to private management under suitable guarantees?
I am aware that the increase in Germany's floating debt and the loss on her railways are very considerable, but I do not think it desirable that I should express any opinion at the moment on the management of the railways.
Is the right hon. Gentleman aware that the reason why travelling is so very cheap in Germany is because of the low rates of pay the wage-earners there are getting at the present time?
State enterprise!
Prohibition Laws (United States)
asked the Prime Minister whether, in view of the inconvenience imposed upon British subjects by the recent enactments of the United States Government restricting their comforts at sea, he will consider the advisability of calling upon steamship companies drawing mail subsidies from is Majesty's Government to supply an occasional service to America via Halifax, whereby passengers under the British flag shall be enabled to preserve that liberty which up to now they have always enjoyed when travelling at sea?
I regret that I can add nothing to statements already made on this subject.
Are the Government doing anything whereby our subjects in British ships should have more friendly and courteous treatment?
My hon. Friend is possibly quite aware that many difficulties have arisen. There are many questions of international and municipal law involved, and the matter is one which requires very careful consideration, which we are giving to it.
asked the Prime Minister whether any arrangement has been arrived at with the United States Government whereby spirituous liquors on board British ships can be sealed up while within American territorial waters; whether any concessions have been granted by the Government of the United States in the matter; and whether, in the event of no agreement being arrived at, he will give facilities for the immediate passing into law of the Passenger Vessels (Liquor) Bill, recently introduced, whereby no American ship shall be allowed to enter British territorial waters unless adequately provided with spirituous liquors?
The reply to the first part of the question is in the negative. The United States Government have decided to permit the carriage of liquor for medicinal purposes in the amounts enjoined by the national laws of the vessel concerned. The last part of the question raises a hypothetical issue which cannot be dealt with until it arises.
Has not the matter already arisen in that the Prime Minister has just said that our ships are being precluded from entering United States ports, and does he not think it quite time that we should not be quite so meek in our dealings with foreign Powers?
Have another war!
Burney Airship Scheme
asked the Prime Minister whether any decision has been reached in reference to the Burney Airship Scheme; and with what Department any contract will be made?
I can add nothing to the answer which I gave to the hon. and gallant Member on the 14th May last.
Is the right hon. Gentleman aware that this matter has been waiting a long time, and can he say when a decision will be announced?
I am afraid I cannot. It is obviously rather more complicated than the question would indicate.
Public Property (Gifts)
asked the Chancellor of the Exchequer whether he has yet conferred with the Public Accounts Committee on the subject of gifts of public property by Government Departments without the previous consent of Parliament; and, if so, what decision has been reached?
With the concurrence of the Public Accounts Committee, it has been arranged that where if is proposed to make any gift of public stores or property exceeding £10,000 in value, a Minute will be presented to the House of Commons explaining the circumstances.
Government Departments
Women (Junior Administrative Grade)
asked the Financial Secretary to the Treasury how many women have been appointed to the junior administrative grade of the Civil Service, and at what salary; whether it has been possible to appoint any women to that grade under paragraph 51 of the Reorganisation Report, which lays down that experienced men and women may be appointed to the junior administrative grade on the £400 to £500 for men and £300 to £400 for women scale; and whether any men have been appointed to the junior administrative grade under this paragraph and, if so, how many?
Three women have been appointed at the minimum of the scale (namely, £313 per annum inclusive of bonus at current rates) to the junior grade of the administrative class. Appointments on the scale of the senior executive class under paragraph 51 of the Reorganisation Report are not appointments to the junior grade of the administrative class. As regards the number of such appointments, I would refer the hon. Member to the reply which my predecessor gave on the 14th March to the hon. Member for Lincoln (Mr. A. T. Davies).
What is the percentage?
That does not arise, but I think it is 10 per cent.
Customs and Excise (Reorganisation)
asked the Financial Secretary to the Treasury whether the reorganisation of the Customs and Excise Department has yet been completed; if so, what steps have been taken during regrading to put into operation Clause 2 of the Resolution of the House on 5th August, 1921, as to equality of opportunity for women; what branches of work previously closed to women have now been opened to them; whether women have now been excluded from any branch in which they were employed on 5th August, 1921; and what steps have been taken to ensure that women have an opportunity of training for the higher posts in the Department irrespective of those posts which involve solely supervision of staff?
The reorganisation of the Customs and Excise Department is not yet complete. The appointment of women in this Department has proceeded on similar lines to those which I indicated in regard to the Inland Revenue Department on the 6th instant in reply to the hon. Member for Middlesbrough.
War Bonus
asked the Postmaster-General whether his attention has been called to the recent decision in the case of Rex v. Sutton; and what steps the Government intend to take with a view to accelerating payments to men of the special sections concerned?
asked the Postmaster-General what action, if any, he proposes to take upon the decision in regard to Rex v. Sutton.
A Special Committee was set up by the Government last week with the object of expediting the settlement of this matter, and it has been decided that the necessary steps shall be taken to make payment without delay to those civil servants to whom the judgment is clearly applicable. An estimate for the expenditure involved will be submitted to the House as early as possible.
Government Surplus War Stores (Disposal)
asked the Financial Secretary to the Treasury how many contracts made by the Disposal Board for the sale of Government property were broken by the purchasers; what was the total amount of money involved in these contracts; what loss has been incurred by the taxpayers; and whether financial guarantees were called for before the contracts were made?
The Ministry of Munitions and the Disposal and Liquidation Commission which succeeded it have made a total of nearly four million separate sales of surplus Government property, and such sales have been made all over the world. The preparation of a statement such as that asked for by my hon. Friend would involve an enormous amount of clerical labour, which I regret it is quite impossible to undertake with the depleted clerical staffs now available. As regards the last part of my hon. Friend's question, except where sales are made for cash before delivery, provision is made for a deposit being paid or financial guarantees obtained.
Are we to understand that there were many cases where the contractors defaulted over this enormous job, and in which the work has not been done?
No, that is not what I said. My answer was that there were £4,000,000 sales all over the world, and that the preparation of the Return would be a very big matter.
Cannot the right hon. Gentleman see his way to give us all contracts over £5,000, which would not be a very tall order, and would show us some of the enormous losses that the British taxpayer has incurred in this disposals matter?
I will certainly consider that: that would be a much easier matter. I will see whether that can be done.
asked the Financial Secretary to the Treasury whether any arrangement has been come to for handing over to a business group the liquidation of the remaining surplus stores, etc., under the control of the Disposal Board; and, if so, whether he will state the names of those forming the group and the terms on which the liquidation will be carried out?
The Disposal and Liquidation Commission, with the approval of the Treasury, have arranged a contract with Messrs. George Cohen Sons and Company, and W. G. Armstrong, Whitworth and Company, Limited, jointly, to sell, on behalf of the Commission, the remainder of the unsold surplus stocks in Great Britain, with certain exceptions, for example, freehold lands and buildings, sidings on railway companies lands, etc. The terms of sale are on the basis of a commission to be paid to these firms jointly on net receipts.
What is the rate of commission that has to be paid to these firms—5 per cent.? Was there another group, which included the Vickers Company, which offered 3 per cent., being less than the firm accepted?
No, Sir, that is not the case. The 5 per cent. mentioned by my hon. Friend is correct.
Will the right hon. Gentleman answer my question? What is the rate of commission to be paid to this firm?
I have answered that my hon. Friend's information on that point—5 per cent.—was correct.
Was any attempt made by the Government to obtain the assistance of other firms in this connection, at a lower rate of interest?
How many other groups have been consulted?
Will this prove to be the final winding up of the Disposal Board at last?
I will try to answer all those various supplementary questions. Several proposals were before the Board and were considered, when it was thought that this was the most advantageous for the Government. They were submitted to the Treasury, and the Treasury approved. I am quite willing that the contracts should be laid on the Table of the House.
Will the right hon. Gentleman lay the other tenders as well?
There were no tenders; only suggestions—[An HON. MEMBER: "And correspondence?"]—and negotiations, but not actual tenders.
Will they be laid on the Table?
The very object of concluding this agreement was to enable the whole thing to be got rid of, and the Disposal Board to be wound up.
asked the Financial Secretary to the Treasury how many times the depot at Aúdruicq has been sold; who were the purchasers who failed to carry out their purchase; what was the price contracted for in each case; if the Disposal Board insisted in each case on financial guarantees being given by the purchasers; and what steps were taken against the defaulting purchasers to recover the unpaid purchase price?
This is a long answer, and perhaps the hon. Gentleman will allow me to circulate it in the OFFICIAL REPORT?
Is it not the fact that the contractor, Mr. Hughes, who failed over the first contract, has now been allowed to have a second contract; was this not put up for tender, and was this man taken haphazard, having once failed with his contract?
Perhaps I had better read the answer!
The depot at Audruicq, with three other depots in France, was sold in December, 1920, by the Disposal Board to Messrs. Aldridge and Hughes. Difficulties arose in the purchasers carrying out their contract. The difficulties were largely due to the fall in the prices of metals, etc., and to the depreciation in the franc exchange. As explained by the Prime Minister in his reply to my hon. Friend on the 12th December last, a revised agreement was made in September, 1922, under which the ownership of the goods in these four depots remained with the Disposal Board, and sales were being carried out under the supervision of the Board, which was to receive the proceeds and to pay expenses. Under that agreement it was, as stated in the reply of the 12th December last, estimated that the proceeds would amount to approximately £500,000, in addition to £389,000 already realised. Further negotiations have recently taken place, with the result that the depots have been disposed of to Mr. Hughes for a total payment of approximately £722,000. This includes a sum of £100,000 deposit paid by the contractors, which has been retained by the Department.
The amount was £100,000. Goods have already been taken far in excess of that amount by the con- tractors, who failed originally. Will the right hon. Gentleman undertake personally to look into this matter and thoroughly sift the whole of the negotiations in connection with it? If he will do this I shall be quite satisfied to leave the matter in his hands.
It is very kind of my hon. Friend. I have been rather busy lately, but I will give an undertaking that I will look into this question, if the hon. Gentleman will not press me for another week or two.
Torquay Corporation Bill
Reported, with Amendments, from the Local Legislation Committee; Report to lie upon the Table, and to be printed.
Selection (Standing Committees)
Standing Committee A
Sir SAMUEL ROBERTS reported from the Committee of Selection; That they had discharged the following Member from Standing Committee A: Mr. Duncan Millar; and had appointed in substitution: Sir Robert Hamilton.
Report to lie upon the Table.
Orders of the Day
Finance Bill
Further considered in Committee [ Progress, 18th June ].
[Mr. JAMES HOPE in the Chair.]
NEW CLAUSE.—[Amendment to 10 and 11 Geo. V., c. 18, s. 16.)
Section sixteen of the Finance Act, 1918 (which provides allowance in respect of earned income), shall have effect as if for the word "one-tenth," there was substituted the word "one-fifth."—[ Mr. T. Smith. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
This proposal is intended to assist materially those taxpayers who are struggling with incomes ranging from £250 upwards. On the Labour Benches we believe that there should be a greater distinction between the allowances for earned and unearned incomes. We are moving this new Clause simply because we believe that it is only a measure of justice. I know that the objection to this proposal will be similar to that put forward by the hon. and learned Gentleman who replied before for the Government—that first of all the Royal Commission recommended an all-round deduction of one-tenth, and, secondly, that the Treasury cannot afford it. We believe that there are ways of raising revenue without making it more difficult for taxpayers with small incomes to live, and if the right hon. Gentleman who is in charge of this Bill cannot meet us all the way, then I hope he will find himself able to go some of the way with us. There have not been many concessions given during this Budget Debate. We have, it is true, got a reduction of the Income Tax which will, to a slight extent, assist the people who are affected by this proposal, but there has not been a great deal of concession to the masses of the people. I do not know exactly what would be the cost of granting this proposal. According to the Debate last year it was put somewhere round about £10,000,000, but I venture to think with the decrease in wages and small salaries the cost now would be far below that amount. I would urge the right hon. Gentleman to seriously consider whether he cannot give the extra concession to the people affected by this Clause. The type of taxpayer who will be affected is the type who attempts at all times to give his family a respectable send-off, and many of these are now having a, very difficult time indeed. The right hon. Gentleman, if he believes that these people should be allowed to maintain a decent standard of existence, might very well accept this proposal, or, if he cannot do that, meet us halfway and make the position somewhat better for them than it is at present.
May I in a few words supplement what my hon. Friend has said, and put briefly to the Financial Secretary the case for this Amendment? As the Financial Secretary is aware, there is a differentiation of one-tenth allowed earned incomes as against income which is derived from investments. This Amendment states that this differentiation of one-tenth is not sufficiently great to really measure the enormous difference in the relative positions of those whose income is derived from some sort of private means and those whose income is dependent on their personal exertions day by day. That is the whole case. May I be allowed to give an example? Take the cases of two men with families. Suppose one man is earning £500 a year and that the other receives £450 a year from War Loan. The present Income Tax assumes that these two individuals are in an exactly identical position in regard to their ability to pay taxation, but I think a little examination will show that, in reality, there is no comparison in the ability to bear taxation between the man who is dependent on a salary of £500 a year and the man who has private means to the extent of £450 a year. True, the man with the salary has £50 more, but it is dependent on all the chances of life; if he falls ill it is suspended; if he retires, should he ever do so, it disappears; if he dies, it means nothing for his wife and family; whereas the man with £450 from private means is in a different position altogether. He may fall ill, he may retire, or he may die. In the two former cases the money is still available for him, and if he dies, after the Death Duties have been deducted the remainder will still be available for his widow and family. I would like to put the point to any Member of this Committee. Supposing any of us were offered either a salary of £500 a year or War Loan bringing in £450, should we hesitate to choose the War Loan? The capital value of the War Loan would be between £8,000 and £10,000 a year, and what comparison can be drawn between the position of a man with that amount of capital and the position of the man dependent on a salary of £500 a year? Yet the Income Tax treats the two men as on an absolute equality.
On the principle of ability to pay, on which the Income Tax is founded, we say that the differentiation ought to be increased. I may point out to the Financial Secretary to the Treasury that, as a matter of fact, before the War, the differentiation was on a far higher scale. Up to the time of the War it was 25 per cent. Even after the War in 1919 it was 33 per cent. On the lower incomes the tax just before the end of the War was 2s. 3d. on unearned income and 1s. 6d. on earned incomes, a differentiation of 33 per cent. It has now fallen to 10 per cent., and it has done so because the Royal Commission on Income Tax made a recommendation to that effect. I believe I shall have the support of the hon. Member for Central Edinburgh (Mr. W. Graham) in saying that this was one of the recommendations made hastily at the end of the discussions when the Chancellor of the Exchequer was pressing for the Report. So far as I can gather, no Debate took place upon it, and it was adopted in this House also without any Debate and became the settled practice. We suggest it would be a very much fairer measure of the different relative positions of the man who earns his living and the man who is living comfortably on investments to make a differentiation between them of 20 per cent. instead of 10 per cent. as at present.
4.0 P.M.
This is one of a series of Amendments which are going to be moved, and all of which make inroads on the proposals of the Royal Commission in regard to the graduation of Income Tax. I hope that in resisting those Amendments I may claim the support of the hon. Member for Central Edinburgh (Mr. W. Graham), who was a member of the Commission, and who was a keen and live worker of it. I want the Committee to consider that there are about 112 new Clauses to be dealt with between now and 12 o'clock. Perhaps I may be allowed to mention the various Amendments now and thus avoid the necessity of making speeches on them as they come up. The whole question is one as to whether the graduation adopted as a result of the Royal Commission's Report is fair or not. The scheme, as hon. Members know, is to make certain allowances in arriving at taxable income; on the first £225, half the standard rate is charged, and that means an enormous concession to the smaller taxpayer. As the income rises, the rate is higher, and above £2,000 there is a Super-tax. That is the first main line upon which graduation has gone—to put the tax at half the rate in the case of the lower taxpayers, and to put it at more than double the rate, by means of a Super-tax, in the case of the highest taxpayers. Then from the assessable income there are various allowances which are now made. There is a personal allowance of £135 to an unmarried taxpayer, a personal allowance of £225 to a married taxpayer, an allowance of £45 to widows or widowers with no children, an allowance of £45 to an unmarried taxpayer in respect of his widowed mother, an allowance in respect of children under 16—£36 for the first child and £27 each for the succeeding children—and an allowance of £25 in respect of a dependent relative. All these allowances, as the hon. Member for Central Edinburgh knows, were part and parcel of the scheme of the Royal Commission for dealing fairly once and for all with this question of graduation. It was a well-thought-out scheme, and the Royal Commission expressed a very strong opinion, which I am going to read to the House, and to which I am going to ask the hon. Member for Central Edinburgh to agree: the scheme of graduation proposed by the Royal Commission and adopted by this House only three years ago. The hon. Member for Keighley (Mr. Lees-Smith) and the hon. Member who moved this Clause start off by making the tenth allowance for earned income one-fifth. That in a full year would cost £8,500,000. The hon. Member truly said that it would mean less now than when the proposal was made three years ago. It would then have cost £10,000,000. Then comes the hon. Member for Colne Valley (Mr. Snowden) who wants to reduce the rate on the first £225 to 1s. 6d.—a rather more complicated Amendment—and that would mean an inroad upon the Income Tax of no less than £16,500,000. Next the hon. Member for Seaham (Mr. Webb) wants to increase the allowance for the first child from £36 to £50 and for the succeeding children from £27 to £40 each. That would cost about £2,225,000. Then the hon. Member for Don Valley (Mr. T. Williams) wants to increase the allowance for the housekeeper by £30, which would be only a small item, but still £110,000 a year. The hon. Member for East Ham (Mr. Barnes) wants to increase the dependent relatives' allowance. That would be only a small item of £70,000. The hon. Member for Springburn (Mr. Hardie) wants to increase the widowed mothers' allowance. That would involve another £100,000. Hon. Members opposite have taken every single method of graduation proposed by the Royal Commission and adopted by this House and are trying to increase every one in turn so as to upset the whole scheme of graduation. The hon. Member for Penistone (Mr. Pringle) wants to increase, somewhat on the same lines as the hon. Member for Seaham, the graduation in respect of earned incomes. His Amendment is a modest one, as we should expect from the hon. Member, and it would cost £10,200,000. Then comes my hon. and learned Friend the Member for York (Sir J. Butcher) who wants to improve the housekeepers' allowance. It is the most modest proposal of all, amounting only to £25,000. My hon. Friend the Member for Guildford (Sir H. Buckingham) has no less than three new Clauses—( Amendment of 10 & 11 Geo. V., c. 18, s. 18 (1); Allowance for travelling expenses; and increased deduction in the case of earned income )—which would involve £900,000, £60,000 and £7,000,000. Finally, the hon. Member for Harrow (Mr. Mosley) brings up a new Clause—(" Amendment of 10 & 11 Geo. V., c. 18, 523)—which would involve £3,000,000 in a full year.
The total amount of these various inroads which are proposed upon the well-considered scheme of Income Tax and upon the whole question of graduation passed three years ago comes to £49,000,000 a year. I agree that some of them overlap, but, making full allowance for those that overlap, the proposals before the Committee would cost fully £30,000,000. It is not necessary for me to say more than that it is quite impossible for the Government to consider these Amendments. I may as well say so frankly. They all interfere with the scheme of graduation, they all propose to alter the law in a certain direction, and I want to appeal to the Committee to support me in resisting them. Perhaps it may be said that it is no good appealing, because the Chancellor of the Exchequer, since 1920, has made the same appeal. My right hon. Friend the Member for West Birmingham (Mr. A. Chamberlain), in 1920, when he carried this big scheme, made an appeal to the House not to go on from concession to concession, implying that because one concession was made another should immediately follow. The last Chancellor of the Exchequer, the right hon. Member for Hillhead (Sir R. Horne), in 1921, implored the House—these are his words— the Treasury and private Members. My hon. Friend the Member for Central Edinburgh made a very curious remark two years ago, and I heard something like it—I forget from which hon. Member it came—one night last week. The hon. Member said:
I am bound to say that I expected an attack of the kind that the Financial Secretary has launched this afternoon, although I appreciate the very friendly spirit in which it was made. But I have no hesitation in telling the Committee that there is a very adequate reply to every point that he has put in opposition to this new Clause. In view of the statement which the Financial Secretary has made that no concessions are to be made on these new Clauses which we are putting forward from this side of the House——
From both sides.
yes, from both sides. It is only fair to the Committee—to recall the circumstances under which the Royal Commission of 1919 presented their Report. The Commission, sitting in 1919 and being pressed to conclude its work in a period of one year, had to survey a very wide field and could only make proposals applying to the broad structure of the Income Tax as a whole. Our labours were proceeding with very great industry and dispatch when we received a request from the then Chancellor of the Exchequer the right hon. Member for West Birmingham (Mr. A. Chamberlain) to hasten our Report and present it in order that he might give effect to the new scale of family and other allowances in the Budget of 1920. We responded to that request, and, necessarily, we had to sacrifice inquiry into very important departments of the Income Tax in this country in order to let him have the Report. The Report was duly presented. The Financial Secretary this afternoon expects my support in resisting this new Clause on the ground that I signed the Report generally, although there were many reservations, as he knows, on individual parts, some of which we signed and others of which opposed. He himself, however, has given away the whole of his case by the very quotation which he has made in reply to our argument on this side of the Committee. He referred to the Income Tax in its "general characteristics." May I from the inside of that Royal Commission indicate quite clearly what we meant. We meant the new scale of family allowances which we recommended as distinct from the rates of abatement or allowances which were previously in force. The Commission recommended a new scale for unmarried persons, and it also recommended a new scale for married people with children in this country. May I make it perfectly clear that as regards that part of the structure we are not making any proposals this afternoon? The family basis, that is the allowance for husband and wife, under our proposals would remain substantially unchanged. But there is another sphere outside the family sphere to which necessarily the Royal Commission, because of the great complexity of its task and the limits to its time, could not give its attention, and that sphere is raised by this new Clause with regard to the distinction between earned and unearned income, and, partly, by later new Clauses which relate to dependent relatives outside the immediate family circle. That really is the point before the Committee. We said, "the Income Tax in its main characteristics," and to that, of course, we adhere. The main characteristics of the scheme are not undermined in any way by our proposals, but we do suggest a series of Amendments which would remove hardships which could not be properly considered by the Royal Commission in 1919. The Commission made that perfectly clear, and there is, therefore, no withdrawal or repudiation of our proposals at the present day.
It would be irrelevant on this Clause to argue what is to follow on certain dependants' allowances, but I want to say a word or two about the distinction between earned and unearned income. There were members of the Royal Commission who thought there should be no differentiation at all, who wanted to wipe out the differentiation on the ground that there was no fundamental distinction between an income from investments and an income which is earned. I am perfectly safe in saying that that view is not held by more than a very small minority of hon. Members who are interested in this problem, or a very small minority of people outside. We recognise at the present day that, in the national interest, there should be a distinction between the taxation of earned and unearned income. There is an additional argument at the present time, which, I think, lends great weight to this proposed Amendment. Notwithstanding all the hardships and difficulties and so-called sufferings of the rich within recent years, it is true that, since 1909, there has been a very large increase in the number of Super-tax payers in this country. There has been a very large increase in the number of people who hold large fortunes, and, above all, because of the growth of the trust and combine, there has been an undoubted increase in the amount of income flowing to people which we can quite rightly call automatic in character, in the sense that they do not personally, by their own efforts, earn it from day to day. We take the view that it is in the national interest at this time that every possible member of the community should be occupied and earn his living, and that taxation should recognise that fact. The old exemption of one-tenth has nowhere been regarded as adequate. My hon. Friend proposes in this Clause that one-fifth should be substituted. May I, in conclusion, draw attention to one great general recommendation in support of that proposal? However desirable many of our other proposals may be, it is true that they apply to certain limited classes, but this further recognition of earned income is a recognition which goes through the structure of Income Tax as a whole. There is not the slightest doubt about that. It is a recognition to all people who are earning or working for their living, and it has, therefore, a force and power which, perhaps, other Amendments do not possess. I venture to suggest that that is a quite adequate reply to the contention of the Financial Secretary, and I very much hope that he may be able to support this proposal.
The Financial Secretary opened the Debate yesterday by granting concessions with great spirit. This afternoon, on the other hand, he has announced, if I understand him correctly, that in the case of all the proposed new Clauses dealing with alterations in the Income Tax law, the Government have made up their minds to grant no concessions. Let me draw the attention of the Committee to the very heavy burdens which are placed on the small Income Tax payer to-day. On incomes under £250 a year, if my information is correct, the Treasury are collecting £8,000,000. Those earning between £250 and £500 a year are paying £15,000,000 to the National Exchequer. Incomes between £500 and £700 are paying £10,000,000, and the total sum that is being paid to-day by individuals with incomes below £1,000 a year amounts to £50,000,000. If this proposal were carried——
I ought to say, after the statement of the Financial Secretary to the Treasury, that a general discussion on this Clause will not be out of order, but it cannot be repeated on subsequent Clauses.
I was dealing with the statement made by the Financial Secretary——
On a point of Order. With reference to the statement which you have just made, do I understand that no explanation of Amendments will be allowed?
No. The Financial Secretary referred to this Clause as part of a series of Clauses dealing with the Income Tax system founded on the Report of the Royal Commission, and all that I meant to say was that a general discussion on the Report, so far as these Clauses dovetail with one another, could not be repeated. Certainly, however, there can be a brief, ad hoc discussion on the other Clauses.
If this Clause were carried, considerable concessions would be granted by the Government to individuals earning under £1,000 a year, and the point I am anxious to press upon the Financial Secretary is this: To-day, if my figures are correct, some £50,000,000 is being collected from individuals in this country who are earning less than £1,000 a year. Compare for a moment the position of this country and America. As the Committee knows, in America no Federal Income Tax is collected from an individual whose income is under £600 a year, and then the rate of Income Tax is 1s. 8d. in the £. As compared with those figures, may I draw the attention of the Committee to the very heavy burden that is being borne by people of moderate means in this country to-day? When one takes into consideration the high prices prevailing to-day, I think the Financial Secretary might have held out some hope of concession in regard to Income Tax. He appealed to the Report of the Royal Commission, but last week, as the Committee knows, Amendments were moved from this side to carry out the recommendations of the Royal Commission. This afternoon, on the other hand, the right hon. Gentleman has fallen back on the Report of the Royal Commission, and refuses to grant any concessions.
The Committee may ask, if the concession asked for in this Clause were granted, the loss being £8,000,000 a year, what would happen? As I understand the Finance Bill, a sum of money is set aside for the payment of debt. That sum of £40,000,000 is fixed, and, if this Clause were carried, the one effect that it would have would be to force the Government of the day to reduce their expenditure by £8,000,000, because, under the terms of the Finance Bill, the Government are pledged to find £40,000,000 for sinking fund for reduction of debt. I plead with the Government to accept some of these Amendments, if not this one, which would cost £8,500,000. It may well be that the cost of collecting that sum from individuals whose incomes are below £250 a year is very high. I do not know. I do not plead for complete exemption. I think that all classes of the community should bear a fair share of the national burdens. But the rate to-day is excessive, and compares unfavourably with other countries, and I hope the Financial Secretary may grant some relief on a later Amendment.
It has been my duty at other times, it is my recreation to-day, to listen to the hon, Member for Greenock (Sir G. Collins) addressing us upon the Budget. I wish that he could sometimes bring himself to speak as a serious Member of the House of Commons, making a serious contribution to our financial problems, and not confine himself to that style of criticism which he has adopted since he crossed the Floor of the House, and which really, whatever its electoral merits, bears no relation, as the hon. Gentleman must know, to the problems with which the House of Commons is concerned. It is simple nonsense to talk, as the hon. Gentleman did just now, of the effect of the adoption of these Amendments being to reduce expenditure. Nothing of the kind. The effect of their adoption would be to create a deficit.
I understand that the Government are forced to repay debt to the amount of £40,000,000 under a Clause in the Finance Bill, and, if that be carried out, I suggest to the right hon. Gentleman that the only alternative is a reduction in national expenditure.
The hon. Gentleman has taken part in so many financial Debates that he ought to know that that is not the only alternative, nor would that be the effect. The effect would be that the Government would have to borrow to fill the deficit that would be created. I want the Committee for one moment to bear with me while I urge again the argument which has been put forward by my right hon. Friend the Financial Secretary, and in support of which I said a few words the other day, for it really is an argument of the greatest substance. It raises a very big question, and, unless the Committee will keep that big question in mind, they will have no real guiding principle to direct them in the consideration of Amendments such as the one which has just been moved, or those which may be moved later. Any of us can find hard cases in respect of any one of the taxes which are now in force, and, the higher the rate of the tax, the easier it is to find hard cases. I go further. Anyone who has followed our financial discussions, and, above all, anyone who has been responsible for the framing or conduct of a Finance Bill, knows that every concession which is made in order to meet one hard case creates another hard case, in this sense, at any rate, that the line of division is drawn in a different place, and the people who are just over the boundary can never see any reason why they should not receive the concession which has been made to those who are within the line.
The hon. Member for Central Edinburgh (Mr. W. Graham) said, I think with truth, that the great majority of people in this country have accepted once and for all the distinction between what is called earned and what is called unearned income. I have always regretted the choice of those names, for they are very misleading; but, if the hon. Gentleman supposes that there is not a great number of people, and especially people of very small means, who feel that distinction to be a tremendous hardship, and even injustice, he would change his mind if he became Chancellor of the Exchequer—a position to which, if I may say so, the hon. Gentleman, by his study and public service, has done much to warrant his appointment. I suppose there is no subject on which those at the Treasury receive a larger correspondence than the case of people who have saved a little money in order to provide for their old age, and then find that they are taxed at what they consider to be a penal rate upon that little money which they have saved, whereas they point to other less industrious apprentices who spend what they may, and sometimes more than they may, and who, because they have sot nothing by, are taxed at a lower rate than these other people, every penny of whose little savings has been earned by the sweat of their brow. There is a widely felt grievance, whether well founded or not, in that respect. I only cite it to show that you cannot get agreement in these matters. Whatever you do, you will create in some quarters a feeling of hardship, and even of injustice. It is very easy to come to the House of Commons and take any one of these cases and say, "Oh, do a little more for the wife, do a little more for the children, do a little more for the dependants." On what principle? Each of these Amendments views one corner of the field under a microscope and neglects the rest.
What did the Royal Commission do? I deprecate the hon Gentleman's attitude—a distinguished and most useful Member of the Royal Commission. You do not generally find a gentleman who has given up a year of his time to the service of the Royal Commission thereafter minimising the work done by the Commission and suggesting that the Financial Secretary pays too much attention to its recommendations. I do not think he can pay too much attention to them. I know no Commission that ever sat dealing with an equally complicated subject which produced so remarkable or so complete a Report as the Royal Commission on Income Tax did. The greatest work and the work that underlies the whole of their recommendations, was the work of reducing the Income Tax and the Super-tax to one graduated scale which gave a rate of tax reasonably fair at all stages and did not produce the grave injustices and inequalities at particular stages which the old system did. If we are going to take each of the Amendments on the Paper which my right hon. Friend dealt with in turn and consider only the particular point they raise, we are going to destroy the whole basic work of the Royal Commission, we are going to upset the equity of the Income Tax as between taxpayer and taxpayer, and undo in an afternoon the work which it is truly remarkable that any Royal Commission could have accomplished even within a year. I beg the Committee, in considering these Amendments, to make some response to the appeal of the Financial Secretary to the Treasury that they should look at this tax as a whole and not allow themselves to be led away into unfairness to the general body of taxpayers by regard- ing at the moment they go to vote only the grievance of some particular class amongst the generality of those who have to bear the burden. The real remedy is not, at this stage, in tinkering with the allowances made for the family or for the dependants, or altering the differentiation between earned and unearned income. The real remedy is one which is common to all classes of taxpayers—not only Income Tax payers but payers of every other tax. The War has forced us to raise all these taxes to an almost unbearable point, and the only thing that would do justice is to do what the Government are doing and pursue the path of State economy and then reduce taxes to a more tolerable level.
The right hon. Gentleman is such an old Member of the House and he lectures us in such a genial way that I have no doubt my hon. Friend the Member for Greenock (Sir G. Collins) and the hon. Member for Central Edinburgh (Mr. W. Graham) have received all he has said in a properly chastened spirit. Let me congratulate the right hon. Gentleman on the way he has so magnanimously assisted the Financial Secretary. A few more speeches of the same kind will undoubtedly do something to remove a certain spirit which remains in his party and which is understood to have barred his return to the Government.
Spirits in various parties are not more in order than alcoholic spirits would be on this Clause.
I thought it was not out of order, as the right hon. Gentleman had lectured my hon. Friend, that I should have drawn a moral from his speech, but I had concluded what I had to say on that head, and I have no doubt the right hon. Gentleman appreciates it. In regard to his injunction to the hon. Member for Greenock to deal with these matters as a serious Member of Parliament, I think the advice was hardly called for. After all, the concluding precepts of his speech were precisely in line with the suggestion of the hon. Member for Greenock. My hon. Friend's suggestion was that the gap which acceptance of the Clause would cause could be filled up by Government economy, and the right hon. Gentleman's conclusion to his own speech was that all remissions of taxation were to be obtained in this way. A remission has been granted upon Income Tax—a general remission of 6d in the £. It is estimated that the cost of the remission which is included on the Clause would be £8,500,000. That is precisely the amount of money which is being remitted to 27,000 people who have incomes over £5,000 a year. The people who come within the purview of this Clause are much more deserving people, and it would be much more in the public interest that they should receive the benefit of £8,500,000 than the 27,000 who have £5,000 a year. Then we are told a good deal about the importance of adhering to the Report of the Royal Commission. The Financial Secretary and the right hon. Gentleman always treat the Report of the Royal Commission as an inspired document, but it is only inspired when it suits them. It is inspired for the purpose of refusing all sorts of concessions to the taxpayer, but when it is a case of other Amendments which have been put forward for the purposes of carrying out other recommendations, both the right hon. Gentleman and the Financial Secretary resist the recommendations of this sacrosanct Commission. I do not think the Committee is going to accept the doctrine of verbal inspiration for the Report of any Royal Commission, and I should be very much surprised if the right hon. Gentleman applied these standards to the Report of any Commission which has at any time reported on some other subject. We have to consider first of all the fact that the Commission hurried its Report for the purpose of meeting the requirements of the right hon. Gentleman. There were many cases which even the most thorough Royal Commission could not have in its purview at the time it reported. New cases arise immediately any Act is put into operation and it is simply because these cases have been revealed by the experience of the last three years that we are pressing them year by year upon the Chancellor of the Exchequer.
Both the Mover of the Amendment and the hon. Member for Keighley (Mr. Lees-Smith) made a strong case for making this differentiation between earned and unearned income. Many of us, when the Royal Commission reported, believed that a retrograde step had been taken in that the same differentiation was not made between earned and unearned income as existed before the Commission's Report was adopted. We believe it was a sound step to differentiate between earned and unearned income for the purpose of the payment of Income Tax, and I am indeed surprised that the right hon. Gentleman opposite should now suggest that it is an unsound distinction and that to differentiate between them operates unfairly on those people who are lucky enough to enjoy considerable unearned income.
What I said was that when you make these changes, in proportion as you have any grievance you increase it and create new grievances in the minds of other taxpayers. The great majority of us agree that differentiation has come to stay, but I said it creates in the minds of a large body of people a sense of grievance.
I accept the right hon. Gentleman's correction. I understood his argument to be that it was a just sense of grievance and that he sympathised with it. The fact that people entertain a sense of grievance is not a justification for refusing a concession. The question has to be dealt with on broad lines of justice, and I believe Parliament, when it first of all differentiated between earned and unearned income for the purpose of Income Tax, introduced a just principle and that due effect was given to that principle up to 1920, but that since 1920, by lessoning the differentiation, the Income Tax payer who has to pay in respect of earned income is treated unfairly as compared with the taxpayer who enjoys solely
earned income. This Clause, therefore, is intended to set right that injustice. It is an effort to restore the old position, and therefore I think it ought to receive the support of all those who believe that the differentiation which was made in pre-War days between earned and unearned income should be restored. I think it is not without significance that the Financial Secretary made no attempt to deal with the Clause on its merits. All he had to say was that it is going to cost so much—that this one will cost £8,500,000 and another, which stands in my name, will cost £10,500,000. I do not think the Committee should be satisfied with that method of dealing with the Amendments. The real question is, is a just case made out in each of these cases separately. If a just case is made out the right hon. Gentleman has no right to stick simply to the scale of the Commission. The Commission may have made a very thorough investigation, but even members of Royal Commissions are not inspired by any means and they cannot have within their knowledge, and even within their inquiry, all the circumstances of the various classes of Income Tax payers. We are now in a new Parliament. We have had an opportunity of seeing the exact effects of the changes which have been made, and in the light of these facts it is for this Committee to press upon the Government on every occasion changes which will operate to secure greater justice as between different classes of taxpayers.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 161; Noes, 245.
Division No. 223.] AYES. [4.45 p m. Adams, D. Cape, Thomas Gray, Frank (Oxford) Adamson, Rt. Hon. William Chapple, W. A. Greenall, T. Adamson, W. M. (Staff., Cannock) Charleton, H. C. Greenwood, A. (Nelson and Colne) Adkins, Sir William Ryland Dent Clarke, Sir E. C. Grenfell, D. R. (Glamorgan) Alexander, A. V. (Sheffield, Hillsbro') Collie, Sir John Groves, T. Attlee, C. R. Collins, Sir Godfrey (Greenock) Grundy, T. W. Barker, G. (Monmouth, Abertillery) Cowan, D. M. (Scottish Universities) Guest, Hon. C. H. (Bristol, N.) Barrie, Sir Charles Coupar (Banff) Darbishire, C. W. Guthrie, Thomas Maule Benn, Captain Wedgwood (Leith) Davies, J. C. (Denbigh, Denbigh) Hall, F. (York, W. R., Normanton) Bonwick, A. Davies, Rhys John (Westhoughton) Hall, G. H. (Merthyr Tydvil) Briant, Frank Davison, J. E. (Smethwick) Hamilton, Sir R. (Orkney & Shetland) Broad, F. A. Dudgeon, Major C. R. Hardie, George D. Bromfield, William Duffy, T. Gavan Hay, Captain J. P. (Cathcart) Brotherton, J. Ede, James Chuter Hayday, Arthur Brown, James (Ayr and Bute) Edmonds, G. Hayes, John Henry (Edge Hill) Buchanan, G. Edwards, C. (Monmouth, Bedwellty) Henderson, Sir T. (Roxburgh) Buckle, J. Emlyn-Jones, J. E. (Dorset, N.) Herriotts, J. Burgess, S. Fairbairn, R. R. Hill, A. Burnie, Major J. (Bootle) Falconer, J. Hinds, John Buxton, Charles (Accrington) Graham, D. M. (Lanark, Hamilton) Hirst, G. H. Buxton, Noel (Norfolk, North) Graham, W. (Edinburgh, Central) Hodge, Rt. Hon. John Hodge, Lieut.-Col. J. P. (Preston) Muir, John W. Snell, Harry Irving, Dan Murnin, H. Snowden, Philip Jenkins, W. (Glamorgan, Neath) Murray, John (Leeds, West) Spencer, George A. (Broxtowe) John, William (Rhondda, West) Murray R (Renfrew Western) Stephen, Campbell Johnston, Thomas (Stirling) Nichol, Robert Stewart, J. (St. Rollox) Johnstone, Harcourt (Willesden, East) O'Grady, Captain James Sturrock, J. Leng Jones, Henry Haydn (Merioneth) Oliver, George Harold Sullivan, J. Jones, J. J. (West Ham, Silvertown) Paling, W. Sutcliffe, T. Jones, Morgan (Caerphilly) Parkinson, John Allen (Wigan) Thomson, T. (Middlesbrough, West) Jones, R. T. (Carnarvon) Parry, Lieut.-Colonel Thomas Henry Thorne, W. (West Ham, Plaistow) Jones, T. T. Mardy (Pontypridd) Phillipps, Vivian Tout, W. J. Jowett, F. W. (Bradford, East) Ponsonby, Arthur Turner, Ben Kenworthy, Lieut.-Commander J. M. Potts, John S. Twist, H. Kenyon, Barnet Pringle, W. M. R. Walsh, Stephen (Lancaster, Ince) Kirkwood, D. Richards, R. Watson, W. M. (Dunfermline) Lamb, J. Q. Richardson, R. (Houghton-le-Spring) Watts-Morgan, Lt.-Col. D. (Rhondda) Lawson, John James Riley, Ben Webb, Sidney Leach, W. Ritson, J. Weir, L. M. Lee, F. Robinson W. C. (York Elland) Welsh, J. C. Lees-Smith, H. B. (Keighley) Rose, Frank H. Westwood, J. Lowe, Sir Francis William Royce, William Stapleton Wheatley, J. MacDonald, J. R. (Aberavon) Saklatvala, S. White, Charles F. (Derby, Western) M'Entee, V. L. Salter, Dr. A. Whiteley, W. McLaren, Andrew Scrymgeour, E. Williams, Dr. J. H. (Llanelly) Macnamara, Rt. Hon. Dr. T. J. Sexton, James Williams, T (York, Don Valley) Macpherson, Rt. Hon. James I. Shaw, Hon. Alex. (Kilmarnock) Wilson, C. H. (Sheffield, Attercliffe) Maitland, Sir Arthur D. Steel- Shaw, Thomas (Preston) Wintringham, Margaret Marks, Sir George Croydon Shinwell, Emanuel Wood, Major M. M. (Aberdeen, C.) Maxton, James Short, Alfred (Wednesbury) Wright, W. Middleton, G. Simon, Rt. Hon. Sir John Young, Robert (Lancaster, Newton) Millar, J. D. Simpson, J. Hope Mond, Rt. Hon. Sir Alfred Morltz Sinclair, Sir A. TELLERS FOR THE AYES .—Mr. Lunn and Mr. T. Griffiths..—Mr. Lunn and Mr. T. Griffiths. Morel, E. D. Sitch, Charles H. Morrison, R. C. (Tottenham, N.) Smith, T. (Pontefract)
NOES. Agg-Gardner, Sir James Tynte Chapman, Sir S. Gretton, Colonel John Alexander, E. E. (Leyton, East) Churchman, Sir Arthur Guinness, Lieut.-Col. Hon. W. E. Alexander, Col. M. (Southwark) Clarry, Reginald George Gwynne, Rupert S. Allen, Lieut.-Col. Sir William James Coates, Lt.-Col. Norman Hacking, Captain Douglas H. Amery, Rt. Hon. Leopold C. M. S. Cobb, Sir Cyril Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Ashley, Lt.-Col. Wilfrid W. Cockerill, Brigadier-General G. K. Halstead, Major D. Astbury, Lieut.-Com. Frederick W. Colfox, Major Wm. Phillips Hamilton, Sir George C. (Altrincham) Baird, Rt. Hon. Sir John Lawrence Colvin, Brig.-General Richard Beale Hannon, Patrick Joseph Henry Baldwin, Rt. Hon. Stanley Conway, Sir W. Martin Harrison, F. C. Banbury, Rt. Hon. Sir Frederick G. Cope, Major William Henn, Sir Sydney H. Barlow, Rt. Hon. Sir Montague Cory, Sir J. H. (Cardiff, South) Hennessy, Major J. R. G. Barnett, Major Richard W. Craig, Captain C. C. (Antrim, South) Herbert, S. (Scarborough) Barnston, Major Harry Craik, Rt. Hon. Sir Henry Hewett, Sir J. P. Bell, Lieut.-Col. W. C. H. (Devizes) Crook, C. W. (East Ham, North) Hilder, Lieut.-Colonel Frank Bellairs, Commander Carlyon W. Crooke, J. Smedley (Deritend) Hiley, Sir Ernest Benn, Sir A. S. (Plymouth, Drake) Curzon, Captain Viscount Hogg, Rt. Hon. Sir D. (St. Marylebone) Bennett, Sir T. J. (Sevenoaks) Davidson, J. C. C. (Hemel Hempstead) Hohler, Gerald Fitzroy Bentinck, Lord Henry Cavendish- Davies, Alfred Thomas (Lincoln) Hood, Sir Joseph Berry, Sir George Davies, Thomas (Cirencester) Hopkins, John W. W. Betterton, Henry B. Davison, Sir W. H. (Kensington, S.) Hopkinson, A. (Lancaster, Mossley) Bird, Sir R. B. (Wolverhampton, W.) Doyle, N. Grattan Houfton, John Plowright Bird, Sir William B. M. (Chichester) Du Pre, Colonel William Baring Howard, Capt. D. (Cumberland, N.) Blades, Sir George Rowland Edmondson, Major A. J. Howard-Bury, Lieut.-Col. C. K. Blundell, F. N. Ednam, Viscount Hudson, Capt. A. Bowyer, Captain G. E. W. Elliot, Captain Walter E. (Lanark) Hughes, Collingwood Brass, Captain W. England, Lieut.-Colonel A. Hurd, Percy A. Bridgeman, Rt. Hon. William Clive Erskine, James Malcolm Monteith Hurst, Lt.-Col. Gerald Berkeley Briggs, Harold Erskine, Lord (Weston-super-Mare) Hutchison, G. A. C. (Midlothian, N.) Brittain, Sir Harry Erskine-Bolst, Captain C. Hutchison, W. (Kelvingrove) Brown, Brig.-Gen. Clifton (Newbury) Evans, Capt. H. Arthur (Leicester, E.) Inskip, Sir Thomas Walker H. Brown, J. W. (Middlesbrough, E.) Eyres-Monsell, Com. Bolton M. Jackson, Lieut.-Colonel Hon. F. S. Bruton, Sir James Falcon, Captain Michael James, Lieut.-Colonel Hon. Cuthbert Buckingham, Sir H. Falle, Major Sir Bertram Godfray Jarrett, G. W. S. Buckley, Lieut.-Colonel A. Fawkes, Major F. H. Jenkins, W. A. (Brecon and Radnor) Bull, Rt. Hon. Sir William James Fermor-Hesketh, Major T. Jephcott, A. R. Burney, Com. (Middx., Uxbridge) Flanagan, W. H. Jodrell, Sir Neville Paul Butcher, Sir John George Ford, Patrick Johnston Jones, G. W. H. (Stoke Newington) Butler, H. M. (Leeds, North) Foxcroft, Captain Charles Talbot Joynson-Hicks, Sir William Butler, J. R. M. (Cambridge Univ.) Frece, Sir Walter de Kennedy, Captain M. S. Nigel Button, H. S. Fremantle, Lieut.-Colonel Francis E. King, Captain Henry Douglas Cadogan, Major Edward Furness, G. J. Lamb, J. Q. Campion, Lieut.-Colonel W. R. Garland, C. S. Lane-Fox, Lieut.-Colonel G. R. Cassels, J. D. Gates, Percy Leigh, Sir John (Clapham) Cautley, Henry Strother Gaunt, Rear-Admiral Sir Guy R. Lloyd-Greame, Rt. Hon. Sir Philip Cecil, Rt. Hon. Sir Evelyn (Aston) Gilmour, Lt.-Col. Rt. Hon. Sir John Locker-Lampson, G. (Wood Green) Cecil, Rt. Hon. Lord R. (Hitchin) Goff, Sir R. Park Lorden, John William Chamberlain, Rt. Hn. J. A. (Birm., W.) Gould, James C. Lorimer, H. D. Chamberlain, Rt. Hon. N. (Ladywood) Greenwood, William (Stockport) Lougher, L. Lowe, Sir Francis William Pilditch, Sir Philip Smith, Sir Harold (Wavertree) Loyd, Arthur Thomas (Abingdon) Pownall, Lieut.-Colonel Assheton Somerville, A. A. (Windsor) Lumley, L. R. Preston, Sir W. R. Somerville, Daniel (Barrow-in-Furness) Lynn, R. J. Pretyman, Rt. Hon. Ernest G. Spender-Clay, Lieut.-Colonel H. H. Macnaghten, Hon. Sir Malcolm Price, E. G. Steel, Major S. Strang McNeill, Ronald (Kent, Canterbury) Privett, F. J. Stewart, Gershom (Wirral) Malone, Major P. B. (Tottenham, S.) Raeburn, Sir William H. Stockton, Sir Edwin Forsyth Margesson, H. D. R. Raine, W. Sueter, Rear-Admiral Murray Fraser Martin, A. E. (Essex, Romford) Rankin, Captain James Stuart Sugden, Sir Wilfrid H. Mason, Lieut.-Col. C. K. Rawlinson, Rt. Hon. John Fredk. Peel Terrell, Captain R. (Oxford, Henley) Milne, J. S. Wardlaw Rawson, Lieut.-Com. A. C. Thompson, Luke (Sunderland) Mitchell, W. F. (Saffron Walden) Rees, Sir Beddoe Thomson, F. C. (Aberdeen, South) Mitchell, Sir W. Lane (Streatham) Reid, D. D. (County Down) Titchfield, Marquess of Moles, Thomas Remnant, Sir James Tryon, Rt. Hon. George Clement Molson, Major John Elsdale Rentoul, G. S. Turton, Edmund Russborough Moore-Brabazon, Lieut.-Col. J. T. C. Reynolds, W. G. W. Ward, Col. L. (Kingston-upon Hull) Moreing, Captain Algernon H. Rhodes, Lieut.-Col. J. P. Watts, Dr. T. (Man., Withington) Morrison, Hugh (Wilts, Salisbury) Richardson, Lt.-Col. Sir P. (Chertsey) Wells, S. R. Morrison-Bell, Major A. C. (Honlton) Roberts, Rt. Hon. G. H. (Norwich) Weston, Colonel John Wakefield Murchison, C. K. Roberts, Samuel (Hereford, Hereford) White, Lt.-Col. G. D. (Southport) Nall, Major Joseph Roberts, Rt. Hon. Sir S. (Eccelsall) Whitla, Sir William Newman, Sir R. H. S. D. L. (Exeter) Robinson, Sir T. (Lancs, Stretford) Windsor-Clive, Lieut.-Colonel George Newson, Sir Percy Wilson Roundell, Colonel R. F. Winfrey, Sir Richard Nicholson, Brig.-Gen. J. (Westminster) Ruggles-Brise, Major E. Winterton, Earl Nicholson, William G. (Petersfield) Russell, Alexander West (Tynemouth) Wise, Frederick Norton-Griffiths, Lieut.-Col. Sir John Russell, William (Bolton) Wolmer, Viscount Ormsby-Gore, Hon. William Russell-Wells, Sir Sydney Wood, Rt. Hn. Edward F. L. (Ripon) Paget, T. G. Samuel, A. M. (Surrey, Farnham) Wood, Sir H. K. (Woolwich, West) Parker, Owen (Kettering) Sanderson, Sir Frank B. Woodcock, Colonel H. C. Pease, William Edwin Sandon, Lord Yate, Colonel Sir Charles Edward Penny, Frederick George Sassoon, Sir Philip Albert Gustave D. Yerburgh, R. D. T. Percy, Lord Eustace (Hastings) Sheffield, Sir Berkeley Perkins, Colonel E. K. Shepperson, E. W. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Peto, Basil E. Simpson-Hinchcliffe, W. A. Philipson, Mabel Skelton, A. N.
NEW CLAUSE.—(Amendment of 10 & 11 Geo. V., c. 18, Section 23.)
Section twenty-three of the Finance Act, 1920 (which provides for a reduced rate of Income Tax on the first two hundred and twenty-five pounds of taxable income), shall have effect as if for the word "half," there were substituted the word "one-third," and also as if there were added the following:
The rate on which the next two hundred pounds of the taxable income of an individual shall be charged to Income Tax shall be two-thirds of the standard rate of tax.—[ Mr. Snowden. ]
Brought up, and read the First time.
I beg to move "That the Clause be road a Second time.
In view of the statement made by the Financial Secretary on the previous Amendment, I do not propose this new Clause with any great enthusiasm, or with any hope that it will be accepted by the Government. The purpose of the new Clause is to increase the amount of income which is now charged to Income Tax at the lower rate. The Committee will remember that the first £225 of taxable income is charged at half the basic rate, that is to say, the Income Tax is now at 4s. 6d. in the £, and the first £225 of taxable income will be charged at 2s. 3d. in the £, and all above that at the full rate. The purpose of my new Clause is to increase the sum on which Income Tax will be paid at the lower rate, from one-half to one-third. Let me give concrete cases. Take the case of a married man with three children and an earned income of £500 a year. He now pays a total tax of £15 3s. 9d. We propose that, instead of his being taxed at 2s. 3d. in the £ on the first £225 of taxable income, he shall pay Income Tax on that first £225 at the rate of 1s. 6d. in the £. On the next £225 he shall pay, not at the full rate, but at two-thirds of the full rate, that is, at 3s. in the £. The tax at the rate of two-thirds would not be paid on an income of £500 a year; therefore, I will illustrate the operation of my proposal by taking an earned income of £750 a year in the case of a married man with three children. He now pays on £225 at 2s. 3d. in the £, and on £135 at 4s. 6d. in the £, a total of £55 13s. 9d. Under my proposal, he would pay on the first £225 at 1s. 6d. in the £, and on £135 at 3s. in the £; a total of £37 7s. 6d., that is, a reduction of the amount paid in Income Tax of about £18.
The real purpose of my proposal is to relieve the people with the lower grades of income. It is not open to the objection put forward by the right hon. Member for West Birmingham (Mr. A. Chamberlain) on the previous Amendment. It will not add to the grievance of those people who pay all their tax on unearned income and who are not now entitled to the deduc- tion in respect of earned income. The amount of rebate, remission, allowance or benefit will be conceded equally to those whose taxable income is earned or unearned. The benefit will be shared by people in the higher ranges of income. That point would have been dealt with if the Amendment which the Committee has just rejected had been passed. We are moving this new Clause, because we believe that it would be a substantial relief to people with the lower ranges of income, as indicated by the figures I have given. I spoke last week upon an Amendment to the Income Tax law proposed from below the Gangway, and I made the point that the remission of taxation to people with very large incomes was not likely to be beneficial to the country.
5.0 P.M.
The right hon. Member for Norwich (Mr. Hilton Young), in replying to my speech, attempted to make a debating point by saying that in advocating relief for the people in the lower ranges of Income Tax I had been inconsistent. No such thing. We had to take this case of the people with smaller incomes because we believe that the Income Tax, at its present rate, presses very heavily on them, and has the same result in their case as excessive indirect taxation has on the small incomes of people not liable to Income Tax. I believe that this remission of taxation will supply what I might call a felt want on the part of these people. It will be spent in adding to a reasonable standard of life; on better education for the children; on more clothing; perhaps, on better food; and altogether in ways which will be an encouragement to trade, and therefore to the increase of employment. For these reasons I commend this new Clause to the attention of the Committee. I repeat that I do so not with much hope that it will commend itself to the Financial Secretary; but still, believing, as we do, that it is one which will be approved by the people outside, we press it to a Division.
May I add—I do not wish to infringe on your ruling, Mr. Hope—that I think the Financial Secretary objected to this and to other Amendments on the ground that they would cost a lot of money. He estimated that a concession on this Clause would cost something like £16,500,000. I do not know how he arrives at that figure, but even granting that his estimate is correct, and that the total figure for all the concessions would be something like £30,000,000, that could be very easily met. The Budget is proposing to relieve the Income Tax payers this year of about £26,000,000, approximately——
I am afraid the hon. Member is now going a little bit beyond the scope of the discussion.
Perhaps you will permit me to say this, that my proposal could be accepted by the Government, with a variation in their Finance Bill, if they would agree to abandon the flat relief in the rates of Income Tax and appropriate that sum in conceding these various Amendments. The benefit that would then be given to the taxpayers of the country would be very considerably greater than that afforded by the method which the Government propose.
I am sorry that the hon. Gentleman should have moved this Clause without any hope, yet it makes my task easier, because I shall not disappoint him. He has told the Committee, quite frankly, that his proposal will cost £16,500,000——
It was not my estimate.
The hon. Gentleman accepts my figures that it will cost £16,500,000, and I am sure he has no reason to doubt that they are correct. It is really quite impossible that we should accept this Clause. I should like to point this out, as the hon. Gentleman moved this Clause with the view of making things easier for the lower grade class of Income Taxpayers. The hon. Member for Greenock (Sir G. Collins), if I heard him rightly, earlier in the afternoon, mentioned the case of a man with £250 a year. He must know, of course, that a married man with three children—which is the standard always taken in these cases—with an income of £250, pays nothing. In fact, I believe that up to an income of £350 a year, a married man with three children now gets off scot free of Income Tax. Therefore, by the present arrangements, we have cleared off Income Tax completely up to £350. A Member of the House of Commons with an income of £400 a year, or anybody who is earning a salary equivalent to that of a Member of the House of Commons—£400—who has a wife and three children, only pays Income Tax on a balance of £45 a year, at a rate of 2s. 3d. in the £. He pays exactly £5 1s. 3d. a year in Income Tax. With the very greatest deference—I do not want to say anything hard—for a man earning £400 a year in these times, and knowing the anxieties of the State, I do not think £5 1s. 3d. is really too great a proportion to take from him by way of Income Tax. That is really the answer to the hon. Gentleman's proposal. I am very sorry I cannot accept it, and as there will be many other Divisions, I hope the Committee will allow us to take the Division upon this one now.
I want to support this new Clause for one special reason, and that is because it emphasises the principle of graduation. The particular class which will be affected by this proposal is composed of people who deserve
some remission of taxation. The Clause affects a person earning what one might call, not the lowest income, but a medium income. Such people are particularly hard hit by high rents, the cost of living, the increased cost of schooling, and so on. The Financial Secretary has stated that the £400 a year man pays very little in Income Tax, but the Committee must remember that those people who are at just about that level—who have between £400 and £500 a year—are, for the most part, people with families, who pay very heavily in indirect taxation. The principle we seem to have seen throughout this Budget is that of either remitting or imposing taxation on the flat rate. This proposal extends the principle of graduation, and, therefore, I support it.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes. 154; Noes, 241.
Division No. 224.] AYES. [5.10 p.m. Adams, D. Greenwood, A. (Nelson and Colne) Mond, Rt. Hon. Sir Alfred Moritz Adamson, Rt. Hon. William Grenfell, D. R. (Glamorgan) Morel, E. D. Adamson, W. M. (Staff., Cannock) Groves, T. Morrison, R. C. (Tottenham, N.) Alexander, A. V. (Sheffield, Hillsbro') Grundy, T. W. Muir, John W. Ammon, Charles George Guthrie, Thomas Maule Murnin, H. Attlee, C. R. Hall, F. (York, W. R., Normanton) Murray, R. (Renfrew, Western) Barker, G. (Monmouth, Abertillery) Hall, G. H. (Merthyr Tydvil) Nichol, Robert Barrie, Sir Charles Coupar (Banff) Hamilton, Sir R. (Orkney & Shetland) O'Grady, Captain James Benn, Captain Wedgwood (Leith) Hardie, George D. Oliver, George Harold Bonwick, A. Hay, Captain J. P. (Cathcart) Paling, W. Briant, Frank Hayday, Arthur Parkinson, John Allen (Wigan) Broad, F. A. Hayes, John Henry (Edge Hill) Parry, Lieut.-Colonel Thomas Henry Bromfield, William Henderson, Sir T. (Roxburgh) Phillipps, Vivian Brown, James (Ayr and Bute) Herriotts, J. Ponsonby, Arthur Buchanan, G. Hill, A. Potts, John S. Buckle, J. Hinds, John Pringle, W. M. R. Burgess, S. Hirst, G. H. Richards, R. Burnie, Major J. (Bootle) Hodge, Rt. Hon. John Richardson, R. (Houghton-le-Spring) Buxton, Charles (Accrington) Hodge, Lieut.-Col. J. P. (Preston) Riley, Ben Buxton, Noel (Norfolk, North) Irving, Dan Ritson, J. Cape, Thomas Jenkins, W. (Glamorgan, Neath) Robinson, W. C. (York, Elland) Chapple, W. A. John, William (Rhondda, West) Rose, Frank H. Charleton, H. C. Johnston, Thomas (Stirling) Royce, William Stapleton Clarke, Sir E. C. Johnstone, Harcourt (Willesden, East) Saklatvala, S. Collie, Sir John Jones, Henry Haydn (Merioneth) Salter, Dr. A. Collins, Sir Godfrey (Greenock) Jones, J. J. (West Ham, Silvertown) Scrymgeour, E. Cowan, D. M. (Scottish Universities) Jones, R. T. (Carnarvon) Sexton, James Darbishire, C. W. Jones, T. I. Mardy (Pontypridd) Shaw, Hon. Alex. (Kilmarnock) Davies, J. C. (Denbigh, Denbigh) Jowett, F. W. (Bradford, East) Shaw, Thomas (Preston) Davies, Rhys John (Westhoughton) Kenworthy, Lieut.-Commander J. M Shinwell, Emanuel Davison, J. E. (Smethwick) Kenyon, Barnet short, Alfred (Wednesbury) Dudgeon, Major C. R. Kirkwood, D. Simpson, J. Hope Duffy, T. Gavan Lambert, Rt. Hon. George Sinclair, Sir A. Ede, James Chuter Lawson, John James Sitch, Charles H. Edmonds, G. Leach, W. Smith, T. (Pontefract) Edwards, C. (Monmouth, Bedwellty) Lee, F. Snell, Harry Emlyn-Jones, J. E. (Dorset, N.) Lowth, T. Snowden, Philip England, Lieut.-Colonel A. Lunn, William Spencer, George A. (Broxtowe) Evans, Capt. H. Arthur (Leicester, E.) MacDonald, J. R. (Aberavon) Stephen, Campbell Fairbairn, R. R. M'Entee, V. L. Stewart, J. (St. Rollox) Falconer, J. McLaren, Andrew Sullivan, J. Gosling, Harry March, S. Thomson, T. (Middlesbrough, West) Graham, D. M. (Lanark, Hamilton) Marshall, Sir Arthur H. Thorne, W. (West Ham, plaistow) Graham, W. (Edinburgh, Central) Maxton, James Tout, W. J. Gray, Frank (Oxford) Middleton, G. Turner, Ben Greenall, T. Millar, J. D. Walsh, Stephen (Lancaster, Ince) Watson, W. M. (Dunfermline) White, Charles F. (Derby, Western) Wright, W. Watts-Morgan, Lt.-Col. D. (Rhondda) Whiteley, W. Young, Robert (Lancaster, Newton) Webb, Sidney Williams, Dr. J. H. (Llanelly) Wedgwood, Colonel Josiah C. Williams, T. (York, Don Valley) TELLERS FOR THE AYES .—Mr. Morgan Jones and Mr. T. Griffiths..—Mr. Morgan Jones and Mr. T. Griffiths. Welsh, J. C. Wilson, C. H. (Sheffield, Attercliffe) Westwood, J. Wintringham, Margaret Wheatley, J. Wood, Major M. M. (Aberdeen, C.
NOES. Agg-Gardner, Sir James Tynte Erskine-Bolst, Captain C. Margesson, H. D. R. Alexander, E. E. (Leyton, East) Eyres-Monsell, Com. Bolton M. Martin, A. E. (Essex, Romford) Alexander, Col. M. (Southwark) Falcon, Captain Michael Mason, Lieut.-Col. C. K. Allen, Lieut.-Col. Sir William James Falle, Major Sir Bertram Godfray Milne, J. S. Wardlaw Amery, Rt. Hon. Leopold C. M. S. Fawkes, Major F. H. Mitchell, W. F. (Saffron Walden) Ashley, Lt.-Col. Wilfrid W. Fermor-Hesketh, Major T. Mitchell, Sir W. Lane (Streatham) Astbury, Lieut.-Com. Frederick W. Flanagan, W. H. Moles, Thomas Baird, Rt. Hon. Sir John Lawrence Ford, Patrick Johnston Molson, Major John Elsdale Baldwin, Rt. Hon. Stanley Foxcroft, Captain Charles Talbot Moore-Brabazon, Lieut.-Col. J. T. C. Banbury, Rt. Hon. Sir Frederick G. Frece, Sir Walter de Moreing, Captain Algernon H. Barlow, Rt. Hon. Sir Montague Fremantle, Lieut.-Colonel Francis E. Morrison, Hugh (Wilts, Salisbury) Barnett, Major Richard W. Furness, G. J. Morrison-Bell, Major A. C. (Honiton) Barnston, Major Harry Garland, C. S. Murchison, C. K. Bell, Lieut.-Col. W. C. H. (Devizes) Gates, Percy Nail, Major Joseph Bellairs, Commander Carlyon W. Gaunt, Rear-Admiral Sir Guy R. Newman, Sir R. H. S. D. L. (Exeter) Benn, Sir A. S. (Plymouth, Drake) Gibbs, Colonel George Abraham Newson, Sir Percy Wilson Bennett, Sir T. J. (Sevenoaks) Gilmour, Lt.-Col. Rt. Hon. Sir John Nicholson, Brig-Gen. J.(Westminster) Bentinck, Lord Henry Cavendish- Goff, Sir R. Park Nicholson, William G. (Petersfield) Berry, Sir George Gould, James C. Norton-Griffiths, Lieut.-Col. Sir John Betterton, Henry B. Greenwood, William (Stockport) Oman, Sir Charles William C. Bird, Sir William B. M. (Chichester) Gretton, Colonel John Ormsby-Gore, Hon. William Blades, Sir George Rowland Guinness, Lieut.-Col. Hon. W. E. Paget, T. G. Blundell, F. N. Gwynne, Rupert S. Parker, Owen (Kettering) Bowyer, Captain G. E. W. Hacking, Captain Douglas H Pease, William Edwin Brass, Captain W. Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Penny, Frederick George Bridgeman, Rt. Hon. William Clive Halstead, Major D. Percy, Lord Eustace (Hastings) Briggs, Harold Hamilton, Sir George C. (Altrincham) Perkins, Colonel E. K. Brittain, Sir Harry Hannon, Patrick Joseph Henry Perring, William George Brown, Brig.-Gen. Clifton (Newbury) Harrison, F. C. Peto, Basil E. Brown, J. W. (Middlesbrough, E.) Henn, Sir Sydney H. Philipson, Mabel Bruton, Sir James Herbert, S. (Scarborough) Pilditch, Sir Philip Buckingham, Sir H. Hewett, Sir J. P. Pownall, Lieut.-Colonel Assheton Buckley, Lieut.-Colonel A. Hilder, Lieut.-Colonel Frank Pretyman, Rt. Hon. Ernest G. Bull, Rt. Hon. Sir William James Hiley, Sir Ernest Price, E. G. Burney, Com. (Middx., Uxbridge) Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Privett, F. J. Butcher, Sir John George Hogg, Rt. Hon. Sir D. (St. Marylebone) Raeburn, Sir William H. Butler, H. M. (Leeds, North) Hohler, Gerald Fitzroy Rankin, Captain James Stuart Butler, J. R. M. (Cambridge Univ.) Hood, Sir Joseph Rawson, Lieut.-Com. A. C. Cadogan, Major Edward Hopkins, John W. W. Rees, Sir Beddoe Campion, Lieut.-Colonel W. R. Hopkinson, A. (Lancaster, Mossley) Reid, D. D. (County Down) Cassels, J. D. Houfton, John Plowright Remnant, Sir James Cautley, Henry Strother Howard, Capt. D. (Cumberland, N.) Rentoul, G. S. Cecil, Rt. Hon. Sir Evelyn (Aston) Howard-Bury, Lieut.-Col. C. K. Reynolds, W. G. W. Cecil, Rt. Hon. Lord R. (Hitchin) Hudson, Capt. A. Rhodes, Lieut.-Col. J. P. Chamberlain, Rt. Hn. J. A. (Birm. W.) Hughes, Collingwood Richardson, Lt.-Col. Sir P. (Chertsey) Chamberlain, Rt. Hon. N. (Ladywood) Hurd, Percy A. Roberts, Rt. Hon. G. H. (Norwich) Chapman, Sir S. Hurst, Lt.-Col. Gerald Berkeley Roberts, Samuel (Hereford, Hereford) Churchman, Sir Arthur Hutchison, G. A. C. (Midlothian, N.) Roberts, Rt. Hon. Sir S. (Ecclesall) Clarry, Reginald George Hutchison, W. (Kelvingrove) Robinson, Sir T. (Lancs., Stretford) Coates, Lt.-Col. Norman Inskip, Sir Thomas Walker H. Roundell, Colonel R. F. Cobb, Sir Cyril Jackson, Lieut.-Colonel Hon. F. S. Ruggles-Brise, Major E. Cockerill, Brigadier-General G. K. James, Lieut.-Colonel Hon. Cuthbert Russell, Alexander West (Tynemouth) Colfox, Major Wm. Phillips Jarrett, G. W. S. Russell, William (Bolton) Colvin, Brig.-General Richard Beale Jenkins, W. A. (Brecon and Radnor) Russell-Wells, Sir Sydney Conway, Sir W. Martin Jephcott, A. R. Samuel, A. M. (Surrey, Farnham) Cope, Major William Jodrell, Sir Neville Paul Sanderson, Sir Frank B. Cory, Sir J. H. (Cardiff, South) Jones, G. W. H. (Stoke Newington) Sandon, Lord Courthope, Lieut.-Col. George L. Joynson-Hicks, Sir William Sassoon, Sir Philip Albert Gustave D. Craig, Captain C. C. (Antrim, South) Kennedy, Captain M. S. Nigel Sheffield, Sir Berkeley Craik, Rt. Hon. Sir Henry King, Captain Henry Douglas Shepperson, E. W. Crook, C. W. (East Ham, North) Lamb, J. Q. Simpson-Hinchliffe, W. A. Crooke, J. Smedley (Deritend) Lane-Fox, Lieut.-Colonel G. R. Skelton, A. N. Dalziel, Sir D. (Lambeth, Brixton) Leigh, Sir John (Clapham) Smith, Sir Harold (Wavertree) Davidson, J. C. C. (Hemel Hempstead) Lloyd-Greame, Rt. Hon. Sir Philip Somerville, A. A. (Windsor) Davies, Alfred Thomas (Lincoln) Locker-Lampson, G. (Wood Green) Somerville, Daniel (Barrow-in-Furness) Davies, Thomas (Clrencester) Locker-Lampson, Com. O. (Handsw'th) Spender-Clay, Lieut.-Colonel H. H. Davison, Sir W. H. (Kensington, S.) Lorden, John William Steel, Major S. Strang Doyle, N. Grattan Lorimer, H. D. Stewart, Gershom (Wirral) Du Pre. Colonel William Baring Lougher, L. Stockton, Sir Edwin Forsyth Edmondson, Major A. J. Lowe, Sir Francis William Sueter, Rear-Admiral Murray Fraser Ednam, Viscount Loyd, Arthur Thomas (Abingdon) Sugden, Sir Wilfrid H. Elliot, Captain Walter E. (Lanark) Lumley, L. R. Sutherland, Rt. Hon. Sir William Erskine, James Malcolm Monteith Lynn, R. J. Terrell, Captain R. (Oxford, Henley) Erskine, Lord (Weston-super-Mare) Macnaghten, Hon. Sir Malcolm Thompson, Luke (Sunderland) Thomson, F. C. (Aberdeen, South) White, Lt.-Col. G. D. (Southport) Woodcock, Colonel H. C. Titchfield, Marquess of Whitla, Sir William Yate, Colonel Sir Charles Edward Tryon, Rt. Hon. George Clement Windsor-Clive, Lieut.-Colonel George Yerburgh, R. D. T. Turton, Edmund Russborough Winterton, Earl Ward, Col. L. (Kingston-upon-Hull) Wise, Frederick TELLERS FOR THE NOES .—Colonel Leslie Wilson and Major Hennessy..—Colonel Leslie Wilson and Major Hennessy. Watts, Dr. T. (Man., Withington) Wolmer, Viscount Wells, S. R. Wood, Rt. Hon. Edward F. L. (Ripon) Weston, Colonel John Wakefield Wood, Sir H. K. (Woolwich, West)
NEW CLAUSE.—(Amendment of 9 and 10 Geo. V., c. 32, Section 16.)
Section sixteen of the Finance Act, 1919 (which exempts from Income Tax wounds and disability pensions) shall be extended to apply to pensions granted to widows whose husbands were killed as the result of naval, military, or Air Force service.—[ Mr. Lawson. ]
Brought up, and read the First time.
I beg to move "That this Clause be read a Second time."
The arguments in support of this Clause will be understood by Members of the last Parliament. This is what is called a hardy annual. The House in 1919 exempted disability pensions of soldiers from Income Tax. At that time there was no mention made of widows. Every year since there has been a claim consistently made that all the arguments used for the exemption of soldiers' pensions should apply to the exemption of widows' pensions. In moving this Clause I am not asking for anything that would benefit the poorer class of widow. It is probably that I am asking for something that will apply to what is known as the other class, rather than to my own people. Nevertheless, it seems to me that the principle once laid down of exempting soldiers' pensions ought not only logically but justly to apply to the pensions of widows. On this point I am one of the die-hards, and that may make some appeal to hon. Gentlemen opposite. For once we are in the same school, though, so far as I am concerned, I hope that no one outside will get to know of this. I do not think that this will apply to very many women. I think that the amount will be small, but the principle is a just one and I hope that it will be accepted.
This is one of the saddest refusals which I have to make this afternoon. I do want the Committee to realise that it is so much easier to make concessions than to refuse them, and yesterday afternoon was far pleasanter than this afternoon. The hon. Member was perfectly frank in saying that he was not appealing on behalf of widows of the poorer class. He asked that the principle of the wound pensions should be extended to the case of widows' pensions. The wound pension exemption was granted very much on the lines of the exemption now granted in respect of workmen's compensation payments. If a workman gets compensation for injuries he does not bring in the compensation for Income Tax purposes, but if a lump sum is paid to a widow and invested for her benefit the income from that pays Income Tax. I think that the argument is very much on all fours. Take the case of two widows, each with an income of £400, one altogether from invested funds and the other with £400 from invested funds and £100 from a soldier's pension. The widows in the two cases have an equal number of children with equal needs of education, and there is no reason why one should be exempt from paying Income Tax on £100 of her income any more than the other. There is the further and greater question that everybody should pay his or her quota to the taxation of the country. Logically, the wound pension, though it seems a hard thing to say, should not be exempt from Income Tax. If there were a case, the pension should be made bigger, so that everybody, wounded soldier or widow, should feel that he or she was contributing to the expenses of governing the country, and maintaining the Army and Navy, and so on. But as that was not done, and the House did make an exemption on behalf of the soldier in the case of the wound pension, I think that it does not follow that in the case of the widow the same thing should be done. This does not apply to the very poor widow, because her income would be exempt, and in the case of the woman above the Income Tax limit I think that it is right that she should pay her share of Income Tax on her pension.
I think that I am correct in saying that last year on the Report stage the Chancellor of the Exchequer did make a concession arising out of the discussion which took place on this question, that so far as the children of widows were concerned payments made by the Ministry of Pensions to the children of widows should not rank for Income Tax. If I am correct in suggesting that, surely the same concession should be made in respect of the pension granted to a widow herself. Having gone so far, the Minister cannot logically persist in his decision. Therefore, I appeal to the right hon. Gentleman to make this further concession, which is not only sound in logic, but is sound from the point of humanity as well. Why should the Government say, "We give you from the Ministry of Pensions certain money, but we deduct from it on account of Income Tax a part of what we are giving"? I do urge the right hon. Gentleman to consider the matter further. According to the statement made a year ago, this concession will amount only to £100,000, and it will do something to relieve the gloom this afternoon if this small concession be made.
I wish very much that the Chancellor of the Exchequer would grant this concession. I can see no reason in logic why it should not be granted. It follows from those concessions which have been granted already that this particular exemption should be given. I do not know the amount involved, but even if it is £100,000, as suggested, that does not seem an enormous sum in comparison with the sums dealt with in this Budget. I hope that the right hon. Gentleman will make this concession which will give great relief to those widows of soldiers who find it difficult to pay their way, and still more difficult to pay Income Tax.
The right hon. Gentleman has indicated that he does not intend to make any concessions on these taxes, and this renders our Debate artificial and unnatural. I wish that that statement could have been avoided, but so far as these pensions are concerned we are entitled to ask that they should be excluded from payment of tax. The right hon. Gentleman said that he thought that everybody ought to pay taxes for the upkeep of the country, and that is a fair statement to make; but he must have overlooked the fact that these widows are already contributing to in- direct taxation out of all proportion to their income, or even to their status in the country. I cannot think that the analogy which he quoted of the two widows each with £500 a year is a very general one. There are far more widows living on £1 a week——
They do not pay Income Tax.
I think that these pensions ought to be excluded. We have already made concessions in two particulars, and I hope that the right hon. Gentleman will reconsider this matter.
I would press the right hon. Gentleman to make this small concession. He said just now that everybody should contribute to taxation, and no class should be exempt, and that logically these unfortunate women were not a class apart. But I would remind him that their husbands have made the largest contribution in the way of service by sacrificing their lives for their country. There is something ironical in the way in which we go about the country erecting war memorials of stone to those men who have fallen, instead of doing our utmost to see that the widows and children are properly looked after. This is a very small matter. It would cost the Treasury very little, and if the concession were made it would relieve the gloom of the afternoon.
I was hoping that we should all be able to face our audiences in future, knowing that we had carried out some part of our promises. I know the straits of the Exchequer at the moment and can claim some fellow feeling, for being chronically "stony-broke" I have sympathy with everyone who is hard up. These widows might very well be given bread instead of a stone. The widow in these cases represents the middle class that hon. Members opposite are always seeking to protect, and that we want to protect, because I know of no class that is suffering more than are these widows, unless it be the extremely low paid class on our side. One could make a very strong statement on the subject, but all of us are agreed that it would be unfair, if not iniquitous, to impose upon the widows burdens that we could easily bear as a country. I do not want to add any discordant note to the discussion, because I am sure that hon. Members on the other side of the House are as anxious as we are to do the right thing. I think I can claim their sympathy in this matter. Next to the blind, these struggling widows should have our consideration. It would be an act not so much of grace as of gratitude if the Treasury would meet our wishes. We want no party advantage. Let us do justice to the dead by honouring the living who are left in our charge.
I have exactly the same feeling as hon. Members opposite. I do not think they quite realise that a widow with an income up to £4 10s. a week is not taxed at all—a widow with three children. So that this proposal does not apply to the very poor widow. But an appeal has been made to me. I do not want to take any action which the Chancellor of the Exchequer cannot endorse. I will report this appeal to him. I cannot bind the Chancellor of the Exchequer and it will be for him to decide whether the matter can be raised again on Report.
I appreciate very much the Financial Secretary's words, and beg to ask leave to withdraw the Motion.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Amendment to 10 and 11 Geo. V., c. 18, Section 21.)
Section twenty-one of the Finance Act, 1920 (which provides for a deduction from assessable income in respect of children), shall have effect as if for the words "thirty-six pounds" and twenty-seven pounds" there were substituted respectively the words "fifty pounds" and "forty pounds."—[ Mr. Trevelyan Thomson. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
After the experience on the last Clause, I am encouraged to hope that the right hon. Gentleman may extend to this Clause the promise to reconsider matters before the Report stage. Of all the concessions that are suggested, this is one which would be of the greatest advantage to the greatest number of people. As the Committee are aware, at present the abatement for children is £36 for the first child and £27 for the last child. If the right hon. Gentleman cannot see his way to go the whole length of my pro- posal, I would suggest the Clause as it was moved last year, making an allowance of £45 for the first child and £36 for the second child, which we were told then would cost a little more than £1,000,000. That sum could be very well spent in furthering the education of those who are in most need of educational facilities. I might refer to the speech of the Minister of Education, in which he said that never had there been a time when there was a greater demand for education, or when greater sacrifices were being made by all people, so that their children might have greater educational advantages than they themselves had enjoyed. No money could be better spent than money spent on the education of the rising generation. International rivalries in the past have been based on force and might; international rivalry in the future will be based on brain and enterprise on commercial lines. If we are to keep the pace in this international rivalry we must have increased educational facilities. As was said by the right hon. Member for West Birmingham (Mr. A. Chamberlain), the only hope of getting these concessions was to suggest economies in other directions. I suggest to the right hon. Gentleman that he might save £1,250,000 by reducing the expenditure on Singapore during the coming year.
Exemplum ne transeat in argumentum.
This comes of being amiable. I did not even make a concession on the last Clause; I promised to consider it. The hon. Gentleman at once gets up, and asks me to extend the concession. It cannot be done. I am exceedingly sorry. As to the remark of the hon. Member for Wednesbury (Mr. Short), I do not want to reduce the Debate to a shadow. I thought it would be a matter of convenience if I told the Committee beforehand my views on all these Amendments. I did not in the least want to burke discussion or anything of the kind.
I would make an appeal to the Financial Secretary from a different point of view. I happen to be a constituent of his.
That is not relevant to the question before the Committee.
I was going to apply the argument and make a claim for further consideration in regard to the children, because of the conditions in the right hon. Gentleman's own constituency. There we have a county secondary school. Two years ago the annual tuition fee at that school was £6 6s. Last year it was raised to £9 9s., and this year it is £15 15s. for every child. That will give the right hon. Gentleman some idea of the increased burden put upon his constituents in this particular respect. If we had had longer notice, and had organised a good round-robin from Twickenham with regard to the increased
charges for education, the right hon. Gentleman would have given us more sympathetic consideration on this new Clause. Having regard, not only to these local circumstances, but to similar circumstances all over the country, having regard also to the increased fees and the stringent cutting down of free places, I would urge that there ought to be some wider consideration given to the question of the allowances for children.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 160; Noes, 242.
NOES. Agg-Gardner, Sir James Tynte Flanagan, W. H. Nall, Major Joseph Alexander, E. E. (Leyton, East) Ford, Patrick Johnston Nesbitt, Robert C. Alexander, Col. M. (Southwark) Foxcroft, Captain Charles Talbot Newman, Sir R. H. S. D. L. (Exeter) Allen, Lieut.-Col. Sir William James Frece, Sir Walter de Newson, Sir Percy Wilson Amery, Rt. Hon. Leopold C. M. S. Fremantle, Lieut.-Colonel Francis E. Nicholson, Brig.-Gen. J. (Westminster) Ashley Lt.-Col Wilfrid W. Furness, G. J. Nicholson, William G. (Petersfield) Baldwin, Rt. Hon. Stanley Galbraith, J. F. W. Nield, Sir Herbert Banbury Rt. Hon. Sir Frederick G. Garland, C. S. Norton-Griffiths, Lieut.-Col. Sir John Barlow, Rt. Hon. Sir Montague Gates, Percy Oman, Sir Charles William C. Barnett, Major Richard W. Gaunt, Rear-Admiral Sir Guy R. Ormsby-Gore, Hon. William Barnston, Major Harry Gilmour, Lt.-Col. Rt. Hon. Sir John Paget, T. G. Bell, Lieut.-Col. W. C. H. (Devizes) Goff, Sir R. Park Parker, Owen (Kettering) Bellairs, Commander Carlyon W. Gould James C. Pease, William Edwin Benn, Sir A. S. (Plymouth, Drake) Greene, Lt.-Col. Sir W. (Hack'y, N.) Penny, Frederick George Bennett, Sir T. J. (Sevenoaks) Greenwood, William (Stockport) Percy, Lord Eustace (Hastings) Bentinck, Lord Henry Cavendish- Grenfell, Edward C. (City of London) Perkins, Colonel E. K. Berry, Sir George Gretton, Colonel John Perring, William George Betterton Henry B. Guinness, Lieut.-Col. Hon. W. E. Peto, Basil E. Bird, Sir William B. M. (Chichester) Gwynne, Rupert S. Philipson, Mabel Blades, Sir George Rowland Hacking, Captain Douglas H. Pilditch, Sir Philip Blundell, F. N. Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Pownall, Lieut.-Colonel Assheton Bowyer, Captain G. E. W. Halstead, Major D. Preston, Sir W. R. Brass, Captain W. Hamilton, Sir George C. (Altrincham) Pretyman, Rt. Hon. Ernest G. Brassey, Sir Leonard Hannon, Patrick Joseph Henry Price, E. G. Bridgeman, Rt. Hon. William Clive Harrison, F. C. Privett, F. J. Briggs, Harold Henn, Sir Sydney H. Raeburn, Sir William H. Brittain, Sir Harry Hennessy, Major J. R. G. Rankin, Captain James Stuart Brown, Brig.-Gen. Clitton (Newbury) Herbert, S. (Scarborough) Rawlinson, Rt. Hon. John Fredk. Peel Brown, J. W. (Middlesbrough, E.) Hewett, Sir J. P. Rawson, Lieut.-Com. A. C. Bruton, Sir James Hilder, Lieut.-Colonel Frank Rees, Sir Beddoe Buckingham, Sir H. Hiley, Sir Ernest Reid, D. D. (County Down) Buckley, Lieut.-Colonel A. Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Remnant, Sir James Bull, Rt. Hon. Sir William James Hogg, Rt. Hon. Sir D. (St. Marylebone) Rentoul, G. S. Burney, Com. (Middx., Uxbridge) Hohier, Gerald Fitzroy Reynolds, W. G. W. Butcher, Sir John George Hood, Sir Joseph Rhodes, Lieut.-Col. J. P. Butler, H. M. (Leeds, North) Hopkins, John W. W. Richardson, Lt.-Col. Sir P. (Chertsey) Button, H. S. Hopkinson, A. (Lancaster, Mossley) Roberts, Rt. Hon. G. H. (Norwich) Cadogan, Major Edward Houfton, John Plowright Roberts, Samuel (Hereford, Hereford) Campion, Lieut.-Colonel W. R. Howard, Capt. D. (Cumberland, N.) Roberts, Rt. Hon. Sir S. (Ecclesall) Cassels, J. D. Howard-Bury, Lieut.-Col. C. K. Roundell, Colonel R. F. Cautley, Henry Strother Hudson, Capt. A. Ruggles-Brise, Major E. Cecil, Rt. Hon. Sir Evelyn (Aston) Hughes, Collingwood Russell, Alexander West (Tynemouth) Cecil, Rt. Hon. Lord R. (Hitchin) Hurd, Percy A. Russell-Wells, Sir Sydney Chamberlain, Rt. Hn. J. A. (Birm., W.) Hurst, Lt.-Col. Gerald Berkeley Samuel, A. M. (Surrey, Farnham) Chamberlain, Rt. Hon. N. (Ladywood) Hutchison, G. A. C. (Midlothian, N.) Sanderson, Sir Frank B. Chapman, Sir S. Hutchison, W. (Kelvingrove) Sandon, Lord Churchman, Sir Arthur Inskip, Sir Thomas Walker H. Sassoon, Sir Philip Albert Gustave D. Clarry, Reginald George Jackson, Lieut.-Colonel Hon. F. S. Shepperson, E. W. Coates, Lt.-Col. Norman James, Lieut.-Colonel Hon. Cuthbert Simpson-Hinchliffe, W. A. Cobb, Sir Cyril Jenkins, W. A. (Brecon and Radnor) Skelton, A. N. Cockerill, Brigadier-General G. K. Jodrell, Sir Neville Paul Smith, Sir Harold (Wavertree) Colfox, Major Win. Phillips Jones, G. W. H. (Stoke Newington) Somerville, Daniel (Barrow-in-Furness) Colvin, Brig.-General Richard Beale Joynson-Hicks, Sir William Steel, Major S. Strang Conway, Sir W. Martin Kennedy, Captain M. S. Nigel Stewart, Gershom (Wirral) Cope, Major William King, Captain Henry Douglas Stockton, Sir Edwin Forsyth Cory, Sir J. H. (Cardiff, South) Lamb, J. Q. Sueter, Rear-Admiral Murray Fraser Courthope, Lieut.-Col. George L. Lane-Fox, Lieut.-Colonel G. R. Sugden, Sir Wilfrid H. Craig, Captain C. C. (Antrim, South) Leigh, Sir John (Clapham) Terrell, Captain R. (Oxford, Henley) Craik, Rt. Hon. Sir Henry Lloyd-Greame, Rt. Hon. Sir Philip Thompson, Luke (Sunderland) Crook, C. W. (East Ham, North) Locker-Lampson, G. (Wood Green) Thomson, F. C. (Aberdeen, South) Crooke, J. Smedley (Derltend) Lorden, John William Titchfield, Marquess of Dalziel, Sir D. (Lambeth, Brixton) Lorimer, H. D. Turton, Edmund Russborough Davidson, J. C. C. (Hemel Hempstead) Lougher, L. Ward, Col. L. (Kingston-upon-Hull) Davies, Alfred Thomas (Lincoln) Lowe, Sir Francis William Watts, Dr. T. (Man., Withington) Davies, Thomas (Cirencester) Loyd, Arthur Thomas (Abingdon) Wells, S. R. Davison, Sir W. H. (Kensington, S.) Lumley, L. R. Weston, Colonel John Wakefield Doyle, N. Grattan Lynn, R. J. Wheler, Col. Granville C. H. Du Pre, Colonel William Baring Macnaghten, Hon. Sir Malcolm White, Lt.-Col. G. D. (Southport) Edmondson, Major A. J. McNeill, Ronald (Kent, Canterbury) Whitla, Sir William Ednam, Viscount Margesson H. D. R. Windsor-Clive, Lieut.-Colonel George Elliot, Captain Walter E. (Lanark) Martin, A. E. (Essex, Romford) Winterton, Earl England, Lieut.-Colonel A. Mason, Lieut.-Col. C. K. Wise, Frederick Erskine, James Malcolm Monteith Milne, J. S. Wardlaw Wolmer, Viscount Erskine, Lord (Weston-super-Mare) Mitchell, W. F. (Saffron Walden) Wood, Rt. Hn. Edward F. L. (Ripon) Erskine-Bolst, Captain C. Mitchell, Sir W. Lane (Streatham) Wood, Sir H. K. (Woolwich, West) Evans, Capt. H. Arthur (Leicester, E.) Moles, Thomas Woodcock, Colonel H. C. Evans, Ernest (Cardigan) Molson, Major John Elsdale Yate, Colonel Sir Charles Edward Eyres-Monsell, Com. Bolton M. Moore-Brabazon, Lieut.-Col. J. T. C. Yerburgh, R. D. T. Falcon, Captain Michael Moreing, Captain Algernon H. Falle, Major Sir Bertram Godfray Morrison, Hugh (Wilts Sallsbury) TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Fawkes, Major F. H. Morrison-Bell, Major A. C. (Honiton) Fermor-Hesketh, Major T. Murchison, C. K.
Division No. 225.] AYES. [5.45 p. m. Adams, D. Hay, Captain J. P. (Cathcart) Pringle, W. M. R. Adamson, Rt. Hon. William Hayday, Arthur Richards, R. Adamson, W. M. (Staff., Cannock) Hayes, John Henry (Edge Hill) Richardson, R. (Houghton-le-Spring) Alexander, A. V. (Sheffield, Hillsbro') Henderson, Sir T. (Roxburgh) Riley, Ben Attlee, C. R. Herriotts, J. Ritson, J. Barker, G. (Monmouth, Abertillery) Hill, A. Roberts, C. H. (Derby) Barrie, Sir Charles Coupar (Banff) Hillary, A. E. Robinson, Sir T. (Lanes, Stretford) Benn, Captain Wedgwood (Leith) Hinds, John Robinson, W. C. (York, Elland) Bonwick, A. Hirst, G. H. Rose, Frank H Briant, Frank Hodge, Rt. Hon. John Royce, William Stapleton Broad, F. A. Hodge, Lieut.-Col. J. P. (Preston) Saklatvala, S. Bromfield, William Irving, Dan Salter, Dr. A. Brown, James (Ayr and Bute) Jenkins, W. (Glamorgan, Neath) Scrymgeour, E. Buchanan, G. John, William (Rhondda, West) Sexton, James Buckle, J. Johnston, Thomas (Stirling) Shaw, Hon. Alex. (Kilmarnock) Burgess, S. Johnstone, Harcourt (Willesden, East) Shaw, Thomas (Preston) Burnie, Major J. (Bootle) Jones, Henry Haydn (Merioneth) Shinwell, Emanuel Buxton, Charles (Accrington) Jones, J. J. (West Ham, Silvertown) Short, Alfred (Wednesbury) Buxton, Noel (Norfolk, North) Jones, Morgan (Caerphilly) Simpson, J. Hope Cape, Thomas Jones, R. T. (Carnarvon) Sinclair, Sir A. Chapple, W. A. Jones, T. I. Mardy (Pontypridd) Sitch, Charles H. Charleton, H. C. Jowett, F. W. (Bradford, East) Smith, T. (Pontefract) Clarke, Sir E. C. Jowitt, W. A. (The Hartlepools) Snell, Harry Collie, Sir John Kenworthy, Lieut.-Commander J. M. Snowden, Philip Collins, Sir Godfrey (Greenock) Kenyon, Barnet Spencer, George A. (Broxtowe) Cowan, D. M. (Scottish Universities) Kirkwood, D. Stephenson, Lieut.-Colonel H. K. Davies, J. C. (Denbigh, Denbigh) Lambert, Rt. Hon. George Stephen, Campbell Davies, Rhys John (Westhoughton) Lawson, John James Stewart, J. (St. Rollox) Davison, J. E. (Smethwick) Leach, W. Sullivan, J. Dudgeon, Major C. R. Lee, F. Sutherland, Rt. Hon. Sir William Duffy, T. Gavan Lowth, T. Thomson, T. (Middlesbrough, West) Ede, James Chuter Lunn, William Thorne, W. (West Ham, Plaistow) Edmonds, G. MacDonald, J. R. (Aberavon) Tillett, Benjamin Edwards, C. (Monmouth, Bedwellty) M'Entee, V. L. Tout, W. J. Emlyn-Jones. J. E. (Dorset, N.) McLaren, Andrew Turner, Ben Entwistle, Major C. F. Macnamara, Rt. Hon. Dr. T. J. Twist, H. Fairbairn, R. R. Macpherson, Rt. Hon. James I. Walsh, Stephen (Lancaster, Ince) Falconer, J. March, S. Watson, W. M. (Dunfermline) Gosling, Harry Marshall, Sir Arthur H. Watts-Morgan, Lt.-Col. D. (Rhondda) Graham, D. M. (Lanark, Hamilton) Maxton, James Webb, Sidney Graham, W. (Edinburgh, Central) Millar, J. D. Wedgwood, Colonel Josiah C. Gray, Frank (Oxford) Morel, E. D. Welsh, J. C. Greenall, T. Morrison, R. C. (Tottenham, N.) Westwood, J. Greenwood, A. (Nelson and Colne) Muir, John W. Wheatley, J. Grenfell, D. R. (Glamorgan) Murnin, H. White, Charles F. (Derby, Western) Griffiths, T. (Monmouth, Pontypool) Murray, John (Leeds, West) Whiteley, W. Grigg, Sir Edward Murray, R. (Renfrew, Western) Williams, T. (York, Don Valley) Groves, T. Nichol, Robert Wilson, C. H. (Sheffield, Attercliffe) Grundy, T. W. O'Grady, Captain James Wintringham, Margaret Guest, Hon. C. H. (Bristol, N.) Oliver, George Harold Wright, W. Guthrie, Thomas Maule Paling, W. Hall, F. (York, W. R., Normanton) Parkinson, John Allen (Wigan) TELLERS FOR THE AYES .—Mr. Phillipps and Major McKenzie Wood..—Mr. Phillipps and Major McKenzie Wood. Hall, G. H. (Merthyr Tydvil) Parry, Lieut.-Colonel Thomas Henry Hamilton, Sir R. (Orkney & Shetland) Ponsonby, Arthur Hardie, George D. Potts, John S.
NEW CLAUSE.—(Amendment of 10 and 11 Geo. V., c. 18, Section 19.)
Section nineteen of the Finance Act, 1920 (which provides for a deduction in respect of relatives taking charge of widowers' or widows' children), shall have effect as if for the words "forty-five pounds" there were substituted the words "seventy-five pounds."—[ Mr. Charles Roberts. ]
Brought up, and read the First time.
I beg to move "That the Clause be read a Second time."
I have been asked to put this point to the Financial Secretary to the Treasury. It deals with the question of the housekeeper's allowance and is not a very substantial matter so far as the revenue is concerned—I think the Financial Secretary said it would cost £70,000—but there is a certain grievance involved and I hope the right hon. Gentleman will give it his consideration. The position shortly is, that a married man whose wife is living with him is entitled to an allowance of £225. A widower is only entitled to claim a personal allowance of £135, but if the widower has his mother or some other female relation living with him, as his housekeeper, and looking after those of his children who are under 16, he is allowed, in that case, £45. The proposed new Clause asks that in view of the cost of living and other circumstances the £45 should be raised to £75. There is another point in reference to the case of the widower which might be considered and which would not involve, I think, more than a negligible sum. If the widower has as his housekeeper a daughter, to whom perhaps he pays a salary for looking after the house, but there is no child under 16, he cannot claim in respect of that daughter. I think there is a certain small grievance in that matter.
When we ask the Financial Secretary for concessions involving large sums he says it is impossible to grant them, and I agree with him, and I have not been voting for reductions involving large sums. I quite realise the right hon. Gentleman's position, but when it comes to a case of the scraps which fall from his table, I think he might give way on a matter like this. As regards the real weight and burden of taxation, it is quite impossible to give relief at the present time, but there are a number of small grievances in the working of the Income Tax which affect people, and it would give a great deal of satisfaction if those were cleared away. As I have said, this is quite a small point, yet a number of people have written to me about it, and it is a grievance which, it may be, only affects a few people, but which is none the less felt to be a grievance. Perhaps the Financial Secretary may see his way to enlarge the housekeeper's allowance on the Report stage. It is a very trifling sum, and as the Financial Secretary hardened his heart against the last proposal before the Committee, perhaps the turn has come for his more gracious and yielding mood, and, in that hope, I beg to move that the Clause be read a Second time.
The hon. Member has asked me to give him this concession out of the scraps which fall from my table, but it is my duty to see that no scraps fall. That is what I am here to do. The hon. Member suggested that this new Clause should be accepted because of the cost of living, but that suggestion should have been made last year when the cost of living was higher. I am sorry that the House had not the privilege of the hon. Member's presence last year, but those hon. Members who were looking after these housekeepers last year did not see fit to move this Clause. [HON. MEMBERS: "Yes."] It was put down but it was not moved. [HON. MEMBERS: "It was not called."] At all events, I wish the Committee to see what it means. First, it is sought to raise the £45 to £75; next year there would be a proposal to raise it to £80, and the following year a proposal to raise it to £100. There is no finality about the matter. I must go back once again to the Royal Commission's Report. They considered this question and the House considered it at a time when the cost of living was greater than it is at present and now, when the cost of living is happily going down, I do not think we should be called upon to make any concession in the matter.
6.0 P.M.
Like most other hon. Members who have been supporting proposed new Clauses, I feel that this particular new Clause is one which should be accepted. It is not a case of the cost of living or of prices, but a matter of plain justice. The proposal put down in 1922 sought to raise the allowance to £90 instead of the £75 which is suggested this year, and I believe the Chancellor of the Exchequer last year declared he was greatly impressed by the case put forward. He also stated at a later date that after very careful consideration he found he had no crumbs falling from his table and that no concession could be made. Whatever may be urged with regard to any other inequalities of taxation, this is an obvious injustice and one which is recognised on every side of the House. The reasons urged against the acceptance of the Clause, or, rather, the excuses, as no reasons have been put forward, are, first, that the Chancellor of the Exchequer cannot afford the money, but if this be an injustice, the £100,000 which it would cost to remedy ought not to stand in the way of the injustice being met. The cost would not be one two-hundredth part of the amount granted to the rich taxpayers, and the benefit would be derived by a poorer class, who can ill afford to be penalised, because they have been unfortunate enough to have lost their wives. The second excuse given by the right hon. Gentleman is the Royal Commission on the Income Tax, and the same excuse was put forward last year, but hon. Members will have seen even this year that variations have been made where it was felt that variations should be made.
The reasons for the acceptance of this Clause are obvious, since the widower is penalised for having lost his wife. He must take unto himself a housekeeper, a relative of either himself or his late wife, if one can be found, and it seems to me that if the same domestic functions are carried on by the new lady as by the wife, the same financial obligations are there, and it may even be that those obligations are actually increased, for while the wife may have been content with food, clothing, and shelter, and to take her share of what the household possessed, the house-
keeper might need a wage in addition, and I would ask the right hon. Gentleman, who appears to be in a very sympathetic mood, not to find himself totally incapable of giving practical effect to his sympathy. Take the case of a man who has lived a happy married life for 40 years and who loses his wife, but wishes to retain his home and home associations. Because he takes in a housekeeper, a relative if he can get one, who would act as a soothing influence. [ Laughter. ] Hon. Members will, I think, agree that in case an individual should meet with such an unfortunate bereavement as to lose his wife, and there is no other influence in the home, except perhaps children, there is a very great chance of that man, having no grown-up people to converse with, taking to what hon. Members might regard as unpleasant paths, unless there is some influence at home to keep him there and help him forget his troubles.
For that reason, I think that, not £75, but the same allowance should be conceded to the housekeeper as was granted in respect to the wife. I do not think the excuses that have been made can be claimed to be reasons, and I hope the right hon. Gentleman is not only going to tell us in words of his sympathy towards these cases, but that he will give practical effect to that sympathy. This is the fourth time this Clause has been moved. It has three times been rejected, and I hope the right hon. Gentleman will not allow it to develop into one of those hardy annuals that will almost extract tears from future Chancellors of the Exchequer when they come to deal with it. I look to him to grant this very small measure of justice, or at least to give us some assurance that he will consult his right hon. Friend with a view to granting the same on the Report stage.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 164; Noes, 256.
Division No. 226.] AYES. [6.7 p.m. Adams, D. Bonwick, A. Buxton, Noel (Norfolk, North) Adamson, Rt. Hon. William Briant, Frank Cape, Thomas Adamson, W. M. (Staff., Cannock) Broad, F. A. Chapple, W. A. Adkins, Sir William Ryland Dent Bromfield, William Charleton, H. C. Alexander, A. V. (Sheffield, Hillsbro') Brown, James (Ayr and Bute) Clarke, Sir E. C. Asquith, Rt. Hon. Herbert Henry Buchanan, G. Collie, Sir John Attlee, C. R. Buckle, J. Collins, Sir Godfrey (Greenock) Barker, G. (Monmouth, Abertillery) Burgess, S. Cowan, D. M. (Scottish Universities) Barrie, Sir Charles Coupar (Banff) Burnie, Major J. (Bootle) Darbishire, C. W. Benn, Captain Wedgwood (Leith) Buxton, Charles (Accrington) Davies, J. C. (Denbigh, Denbigh) Davies, Rhys John (Westhoughton) Jones, Henry Haydn (Merioneth) Royce, William Stapleton Dudgeon, Major C. R. Jones, J. J. (West Ham, Silvertown) Saklatvala, S. Duffy, T. Gavan Jones, Morgan (Caerphilly) Salter, Dr. A. Duncan, C. Jones, R. T. (Carnarvon) Scrymgeour, E. Ede, James Chuter Jones, T. I. Mardy (Pontypridd) Sexton, James Edmonds, G. Jowett, F. W. (Bradford, East) Shaw, Hon. Alex. (Kilmarnock) Edwards, C. (Monmouth, Bedwellty) Jowitt, W. A. (The Hartlepools) Shaw, Thomas (Preston) Emlyn-Jones, J. E. (Dorset, N.) Kenworthy, Lieut.-Commander J. M. Shinwell, Emanuel Entwistle, Major C. F. Kenyon, Barnet Short, Alfred (Wednesbury) Fairbairn, R. R. Kirkwood, D. Simon, Rt. Hon. Sir John Falconer, J. Lambert, Rt. Hon. George Simpson, J. Hope Gosling, Harry Lawson, John James Sinclair, Sir A. Graham, D. M. (Lanark, Hamilton) Leach, W. Sitch, Charles H. Graham, W. (Edinburgh, Central) Lee, F. Smith, T. (Pontefract) Gray, Frank (Oxford) Lowth, T. Snell, Harry Greenall, T. Lunn, William Snowden, Philip Greenwood, A. (Nelson and Colne) MacDonald, J. R. (Aberavon) Spencer, George A. (Broxtowe) Grenfell, D. R. (Glamorgan) M'Entee, V. L. Stephenson, Lieut.-Colonel H. K. Griffiths, T. (Monmouth, Pontypool) Maclean, Neil (Glasgow, Govan) Stephen, Campbell Grigg, Sir Edward Macnamara, Rt. Hon. Dr. T. J. Stewart, J. (St. Rollox) Groves, T. March, S. Sullivan, J. Grundy, T. W. Maxton, James Thomson, T. (Middlesbrough, West) Guest, Hon. C. H. (Bristol, N.) Millar, J. D. Thorne, W. (West Ham, Plaistow) Guthrie, Thomas Maule Mond, Rt. Hon. Sir Alfred Moritz Tillett, Benjamin Hall, F. (York, W. R., Normanton) Morel, E. D. Tout, W. J. Hall, G. H. (Merthyr Tydvil) Morrison, R. C. (Tottenham, N.) Turner, Ben Hamilton, Sir R. (Orkney & Shetland) Muir, John W. Twist, H. Hardie, George D. Murnin, H. Walsh, Stephen (Lancaster, Ince) Hastings, Patrick Murray, John (Leads, West) Watson, W. M. (Dunfermline) Hay, Captain J. P. (Cathcart) Murray, R. (Renfrew, Western) Watts-Morgan, Lt.-Col. D. (Rhondda) Hayday, Arthur Nichol, Robert Webb, Sidney Hayes, John Henry (Edge Hill) O'Grady, Captain James Wedgwood, Colonel Josiah C. Henderson, Sir T. (Roxburgh) Oliver, George Harold Welsh, J. C. Herriotts, J. Paling, W. Westwood, J. Hill, A. Parkinson, John Allen (Wigan) Wheatley, J. Hillary, A. E. Parry, Lieut.-Colonel Thomas Henry White, Charles F. (Derby, Western) Hinds, John Ponsonby, Arthur Whiteley, W. Hirst, G. H. Potts, John S. Williams, T. (York, Don Valley) Hodge, Rt. Hon. John Pringle, W. M. R. Wilson, C. H. (Sheffield, Attercliffe) Hodge, Lieut.-Col. J. P. (Preston) Richards, R. Wintringham, Margaret Hogge, James Myles Richardson, R. (Houghton-le-Spring) Wood, Major M. M. (Aberdeen, C.) Irving, Dan Riley, Ben Wright, W. Jenkins, W. (Glamorgan, Neath) Ritson, J. John, William (Rhondda, West) Roberts, C. H. (Derby) TELLERS FOR THE AYES .—Mr. Phillipps and Sir A. Marshall..—Mr. Phillipps and Sir A. Marshall. Johnston, Thomas (Stirling) Robinson, W. C. (York, Elland) Johnstone, Harcourt (Willesden, East) Rose, Frank H.
NOES. Agg-Gardner, Sir James Tynte Butcher, Sir John George Doyle, N. Grattan Alexander, E. E. (Leyton, East) Butler, H. M. (Leeds, North) Du Pre, Colonel William Baring Alexander, Col. M. (Southwark) Button, H. S. Edmondson, Major A. J. Allen, Lieut.-Col. Sir William James Cadogan, Major Edward Ednam, Viscount Amery, Rt. Hon. Leopold C. M. S. Campion, Lieut.-Colonel W. R. Elliot, Captain Walter E. (Lanark) Ashley, Lt.-Col. Wilfrid W. Cassels, J. D. England, Lieut.-Colonel A. Baird, Rt. Hon. Sir John Lawrence Cautley, Henry Strother Erskine, James Malcolm Monteith Baldwin, Rt. Hon. Stanley Cayzer, Sir C. (Chester, City) Erskine, Lord (Weston-super-Mare) Banbury, Rt. Hon. Sir Frederick G. Cecil, Rt. Hon. Sir Evelyn (Aston) Erskine-Bolst, Captain C. Banks, Mitchell Cecil, Rt. Hon. Lord R. (Hitchin) Evans, Ernest (Cardigan) Barlow, Rt. Hon. Sir Montague Chamberlain, Rt. Hn. J. A. (Birm., W.) Evans, Capt. H. Arthur (Leicester, E.) Barnett, Major Richard W. Chamberlain, Rt. Hon. N. (Ladywood) Eyres-Monsell, Com. Bolton M. Barnston, Major Harry Chapman, Sir S. Falcon, Captain Michael Bell, Lieut.-Col. W. C. H. (Devizes) Churchman, Sir Arthur Falle, Major Sir Bertram Godfray Bellairs, Commander Carlyon W. Clarry, Reginald George Fawkes, Major F. H. Benn, Sir A. S. (Plymouth, Drake) Coates, Lt.-Col. Norman Fermor-Hesketh, Major T. Bennett, Sir T. J. (Sevenoaks) Cobb, Sir Cyril Flanagan, W. H. Bentinck, Lord Henry Cavendish- Cockerill, Brigadier-General G. K. Ford, Patrick Johnston Berry, Sir George Colfox, Major Wm. Phillips Foxcroft, Captain Charles Talbot Betterton, Henry B. Colvin, Brig.-General Richard Beale Frece, Sir Walter de Bird, Sir William B. M. (Chichester) Conway, Sir W. Martin Fremantle, Lieut.-Colonel Francis E. Blades, Sir George Rowland Cope, Major William Furness, G. J. Blundell, F. N. Cory, Sir J. H. (Cardiff, South) Galbraith, J. F. W. Bowyer, Captain G. E. W. Courthope, Lieut.-Col. George L. Garland, C. S. Brass, Captain W. Craig, Captain C. C. (Antrim, South) Gates, Percy Brassey, Sir Leonard Craik, Rt. Hon. Sir Henry Gaunt, Rear-Admiral Sir Guy R. Bridgeman, Rt. Hon. William Clive Crook, C. W. (East Ham, North) Gilmour, Lt.-Col. Rt. Hon. Sir John Briggs, Harold Crooke, J. Smedley (Deritend) Goff, Sir R. Park Brittain, Sir Harry Curzon, Captain Viscount Gould, James C. Brown, Brig.-Gen. Clifton (Newbury) Dalziel, Sir D. (Lambeth, Brixton) Greene, Lt.-Col. Sir W. (Hack'y, N.) Brown, J. W. (Middlesbrough, E.) Davidson, J. C. C. (Hemel Hempstead) Greenwood, William (Stockport) Bruton, Sir James Davidson, Major-General Sir J. H. Grenfell, Edward C. (City of London) Buckingham, Sir H. Davies, Alfred Thomas (Lincoln) Gretton, Colonel John Buckley, Lieut.-Colonel A. Davies, Thomas (Cirencester) Guinness, Lieut.-Col. Hon. W. E. Bull, Rt. Hon. Sir William James Davison, Sir W. H. (Kensington, S.) Hacking, Captain Douglas H. Burney, Com. (Middx., Uxbridge) Dixon, C. H. (Rutland) Halstead, Major D. Hamilton, Sir George C. (Altrincham) Milne, J. S. Wardlaw Rothschild, Lionel de Hannon, Patrick Joseph Henry Mitchell, W. F. (Saffron Walden) Roundell, Colonel R. F. Harrison, F. C. Mitchell, Sir W. Lane (Streatham) Ruggles-Brise, Major E. Henn, Sir Sydney H. Moles, Thomas Russell, Alexander West (Tynemouth) Hennessy, Major J. R. G. Molson, Major John Elsdale Russell-Wells, Sir Sydney Herbert, Dennis (Hertford, Watford) Moore, Major-General Sir Newton J. Samuel, A. M. (Surrey, Farnham) Herbert, S. (Scarborough) Moore-Brabazon, Lieut.-Col. J. T. C. Samuel, Samuel (W'dsworth, Putney) Hewett, Sir J. P. Moreing, Captain Algernon H. Sanderson, Sir Frank B. Hilder, Lieut.-Colonel Frank Morrison, Hugh (Wilts, Salisbury) Sandon, Lord Hiley, Sir Ernest Morrison-Bell, Major A. C. (Honiton) Sassoon, Sir Philip Albert Gustave D. Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Murchison, C. K. Shepperson, E. W. Hogg, Rt. Hon. Sir D. (St. Marylebone) Nall, Major Joseph Simpson-Hinchcliffe, W. A. Hohler, Gerald Fitzroy Nesbitt, Robert C. Skelton, A. N. Hood, Sir Joseph Newman, Sir R. H. S. D. L. (Exeter) Smith, Sir Harold (Wavertree) Hopkins, John W. W. Newson, Sir Percy Wilson Somerville, Daniel (Barrow-in-Furn'ss) Hopkinson, A. (Lancaster, Mossley) Nicholson, Brig.-Gen. J. (Westminster) Steel, Major S. Strang Houfton, John Plowright Nicholson, William G. (Petersfield) Stewart, Gershom (Wirral) Howard, Capt. D. (Cumberland, N.) Norton-Griffiths, Lieut.-Col. Sir John Stockton, Sir Edwin Forsyth Howard-Bury, Lieut.-Col. C. K. Ormsby-Gore, Hon. William Sturrock, J. Leng Hudson, Capt. A. Paget, T. G. Sueter, Rear-Admiral Murray Fraser Hughes, Collingwood Parker, Owen (Kettering) Sugden, Sir Wilfrid H. Hurd, Percy A. Pease, William Edwin Sutherland, Rt. Hon. Sir William Hurst, Lt.-Col. Gerald Berkeley Penny, Frederick George Terrell, Captain R. (Oxford, Henley) Hutchison, G. A. C. (Midlothian, N.) Percy, Lord Eustace (Hastings) Thompson, Luke (Sunderland) Hutchison, W. (Kelvingrove) Perkins, Colonel E. K. Thomson, F. C. (Aberdeen, South) Inskip, Sir Thomas Walker H. Perring, William George Thorpe, Captain John Henry Jackson, Lieut.-Colonel Hon. F. S. Peto, Basil E. Titchfield, Marquess of James, Lieut.-Colonel Hon. Cuthbert Philipson, Mabel Tryon, Rt. Hon. George Clement Jenkins, W. A. (Brecon and Radnor) Pilditch, Sir Philip Turton, Edmund Russborough Jodrell, Sir Neville Paul Pownall, Lieut.-Colonel Assheton Ward, Col. L. (Kingston-upon-Hull) Joynson-Hicks, Sir William Preston, Sir W. R. Watts, Dr. T. (Man., Withington) Kennedy, Captain M. S. Nigel Pretyman, Rt. Hon. Ernest G. Wells, S. R. King, Captain Henry Douglas Price, E. G. Weston, Colonel John Wakefield Lamb, J. Q. Privett, F. J. Wheler, Col. Granville C. H. Lane-Fox, Lieut.-Colonel G. R. Raeburn, Sir William H. White, Lt.-Col. G. D. (Southport) Leigh, Sir John (Clapham) Raine, W. Whitia, Sir William Lloyd-Greame, Rt. Hon. Sir Philip Rankin, Captain James Stuart Windsor-Clive, Lieut.-Colonel George Locker-Lampson, G. (Wood Green) Rawlinson, Rt. Hon. John Fredk. Peel Winterton, Earl Lorden, John William Rawson, Lieut.-Com. A. C. Wise, Frederick Lorimer, H. D. Rees, Sir Beddoe Wolmer, Viscount Lougher, L. Reid, D. D. (County Down) Wood, Rt. Hon. Edward F. L. (Ripon) Lowe, Sir Francis William Remnant, Sir James Wood, Sir H. K. (Woolwich, West) Loyd, Arthur Thomas (Abingdon) Rentoul, G. S. Woodcock, Colonel H. C. Lumley, L. R. Reynolds, W. G. W. Worthington-Evans, Rt. Hon. Sir L. Lynn, R. J. Rhodes, Lieut.-Col. J. P. Yate, Colonel Sir Charles Edward Macnaghten, Hon. Sir Malcolm Richardson, Lt.-Col. Sir P. (Chertsey) Yerburgh, R. D. T. McNeill, Ronald (Kent, Canterbury) Roberts, Rt. Hon. G. H. (Norwich) Macpherson, Rt. Hon. James I. Roberts, Samuel (Hereford, Hereford) TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Margesson, H. D. R. Roberts, Rt. Hon. Sir S. (Ecclesall) Martin, A. E. (Essex, Romford) Robertson-Despencer, Major (Islgtn, W.) Mason, Lieut.-Col. C. K. Robinson, Sir T. (Lancs., Stretford)
NEW CLAUSE.—(Amendment to 10 and 11 Geo. V, c. 18, s. 20.)
Section twenty of the Finance Act, 1920 (which provides for a deduction from assessable income in respect of a widowed mother, &c.), shall have effect as if for the words "forty-five pounds" there were substituted the words "seventy-five pounds."—[ Mr. T. Thomson. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I do so formally so as to give my hon. Friend the Member for Oxford (Mr. F. Gray) a chance of supporting it.
The proposal is one to amend Section 20 of the Finance Act, 1920, and the proposed Amendment is that the allowance to unmarried men of £45 per year in respect of deduction from assessable income shall be increased to £75. Section 20 relates to an unmarried man who takes upon himself the obligation of maintaining his younger brothers, or sisters, or both, and also, it may be, takes upon himself the obligation of looking after his widowed mother, or the mother who is living apart from her husband and who looks after the children. The Committee, I think, will agree that this man, although a single man, is in a much more serious position than is the married man. He is meeting the obligation of a married man without any of the benefits and privileges—if they be that—enjoyed by the married man. The case of a young man who denies himself the right to get married in order that he may look after the younger children of his parents, or his widowed mother who is without any other means of support, is one which calls for the sympathy of every Member of the House, except, possibly, the Financial Secretary to the Treasury.
indicated assent.
Although I believe—and I only judge from appearances—I have no other reason to judge, but my right hon. Friend is a very kindly and large-hearted man—[HON. MEMBERS: Hear, hear!"]—I say I judge only from appearances and, upon my soul, from utterances of his this afternoon you could not gather whether he was one or the other. But I do think, in the special circumstances of this case, that I may make an earnest appeal to the right hon. Gentleman with some chance of success. I do not know, nor indeed do I care, upon what basis the sum of £45 is fixed, and whether it would have been in 1920 more arguable to increase the sum than it is now. Unfortunately I was not here in 1920.
But the point is this—a point I think which will be accepted by every member of the Committee—that this man maintaining either him mother or mother-in-law should have this £75 allowed. I have not attempted to maintain either mother or mother-in-law, though I expect there are hon. Members here who have attempted to do both; but I may support my argument with one further point in conclusion, and it is that if this young man, instead of accepting these obligations, had allowed these people to become chargeable to the Union, the charge that would have been made upon him would certainly have been larger than that allowed under the Act of 1920. In these circumstances, I urge that £75 is not, taking an average home, more than a sufficient sum to be allowed. We who put forward this proposal take £75 because it can never be seriously urged that that would be a very large or substantial increase upon the revenue of the country.
Hon. Members who put forward these Amendments have great advantage over me. They come with different tones, with different arguments, and in a different spirit, and the last proposal that was put forward referred to the elderly man who was to be sued by his housekeeper. The present hon.
Gentleman has spoken of the young man who is to be sued by his mother-in-law. I have no advantage in having to say "no" in different terms and in different tones, but "no" it must be always. I should be very glad if I could carry my private character into my public capacity. The hon. Gentleman—I think he must confess on rather inadequate knowledge—has given me a certificate as to my private character which makes me feel almost inclined to invite him to dinner to-night. I cannot say that offer, however, would apply to the Movers of other Amendments. I am very sorry I cannot accept this Amendment any more than I could accept the previous Amendment. These Amendments all break into the principle laid down in the Act of 1920, and there is no real reason why this concession should be granted to-day any more than last year, or the previous year.
Might I ask the right hon. Gentleman to reconsider this particular Amendment? I think he has not given it that consideration which I think ought to be given to it—[HON. MEMBERS: "Speak up!"]—and which I believe he would do if he looked at this Amendment from the point of view of some of us on this side. The boy of 15 years of age in 1914 is now a young man of 24. Many young men of this age have accepted the liability and responsibility of carrying on the home which their fathers left in 1914, and which, unfortunately, in many cases they did not return to. I would ask that some scraps should be given so far as this Amendment is concerned. I am not going to ask for scraps from the Treasury, but that some scraps should be left on the table of these young men who have accepted the responsibility to try to keep the home going. If nothing can be done now, perhaps between now and Report stage some consideration will be given—perhaps a little more soothing medicine to hon. Members on this side!
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 169; Noes, 265.
Division No. 227.] AYES. [6.25 p.m. Adams, D. Attlee, C. R. Briant, Frank Adamson, Rt. Hon. William Barker, G. (Monmouth, Abertillery) Broad, F. A. Adamson, W. M. (Staff., Cannock) Barrie, Sir Charles Coupar (Banff) Bromfield, William Alexander, A. V. (Sheffield, Hillsbro') Benn, Captain Wedgwood (Leith) Brown, James (Ayr and Bute) Asquith, Rt. Hon. Herbert Henry Bonwick, A. Buchanan, G. Buckle, J. Hodge, Lieut.-Col. J. P. (Preston) Roberts, C. H. (Derby) Burgess, S. Hutchison, Sir R. (Kirkcaldy) Roberts, Frederick O. (W. Bromwich) Burnie, Major J. (Bootle) Irving, Dan Robinson, W. C. (York, Elland) Buxton, Charles (Accrington) Jenkins, W. (Glamorgan, Neath) Rose, Frank H. Buxton, Noel (Norfolk, North) John, William (Rhondda, West) Royce, William Stapleton Cape, Thomas Johnston, Thomas (Stirling) Saklatvala, S. Chapple, W. A. Johnstone, Harcourt (Willesden, East) Salter, Dr. A. Charleton, H. C. Jones, Henry Haydn (Merioneth) Scrymgeour, E. Clarke, Sir E. C. Jones, J. J. (West Ham, Slivertown) Sexton, James Collie, Sir John Jones, Morgan (Caerphilly) Shaw, Hon. Alex. (Kilmarnock) Collins, Sir Godfrey (Greenock) Jones, R. T. (Carnarvon) Shaw, Thomas (Preston) Cowan, D. M. (Scottish Universities) Jones, T. I. Mardy (Pontypridd) Shinwell, Emanuel Darbishire, C. W. Jowett, F. W. (Bradford, East) Short, Alfred (Wednesbury) Davies, J. C. (Denbigh, Denbigh) Jowitt, W. A. (The Hartlepools) Simon, Rt. Hon. Sir John Davies, Rhys John (Westhoughton) Kenworthy, Lieut.-Commander J. M. Simpson, J. Hope Davison, J. E. (Smethwick) Kenyon, Barnet Sinclair, Sir A. Dudgeon, Major C. R. Kirkwood, D. Sitch, Charles H. Duffy, T. Gavan Lambert, Rt. Hon. George Smith, T. (Pontefract) Duncan, C. Lawson, John James Snell, Harry Ede, James Chuter Leach, W. Snowden, Philip Edmonds, G. Lee, F. Spencer, George A. (Broxtowe) Edwards, C. (Monmouth, Bedwellty) Lees-Smith, H. B. (Keighley) Stephenson, Lieut.-Colonel H. K. Emlyn-Jones, J. E. (Dorset, N.) Lowth, T. Stephen, Campbell Entwistle, Major C. F. Lunn, William Stewart, J. (St. Rollox) Fairbairn, R. R. MacDonald, J. R. (Aberavon) Sturrock, J. Leng Falconer, J. M'Entee, V. L. Sullivan, J. Gilbert, James Daniel McLaren, Andrew Thomson, T. (Middlesbrough, West) Gosling, Harry Maclean, Neil (Glasgow, Govan) Thorne, W. (West Ham, Plaistow) Graham, D. M. (Lanark, Hamilton) Macnamara, Rt. Hon. Dr. T. J. Tillett, Benjamin Graham, W. (Edinburgh, Central) March, S. Tout, W. J. Gray, Frank (Oxford) Maxton, James Trevelyan, C. P. Greenall, T. Millar, J. D. Turner, Ben Greenwood, A. (Nelson and Colne) Mond, Rt. Hon. Sir Alfred Moritz Twist, H. Grenfell, D. R. (Glamorgan) Morel, E. D. Walsh, Stephen (Lancaster, Ince) Griffiths, T. (Monmouth, Pontypool) Morrison, R. C. (Tottenham, N.) Watson, W. M. (Dunfermilne) Grigg, Sir Edward Muir, John W. Watts-Morgan, Lt.-Col. D. (Rhondda) Groves, T. Murnin, H. Webb, Sidney Grundy, T. W. Murray, John (Leeds, West) Wedgwood, Colonel Josiah C. Guthrie, Thomas Maule Murray, R. (Renfrew, Western) Welsh, J. C. Hall, F. (York, W. R., Normanton) Nichol, Robert Westwood, J. Hall, G. H. (Merthyr Tydvil) O'Grady, Captain James Wheatley, J. Hamilton, Sir R. (Orkney & Shetland) Oliver, George Harold White, Charles F. (Derby, Western) Hardie, George D. Paling, W. White, H. G. (Birkenhead, E.) Hastings, Patrick Parkinson, John Allen (Wigan) Whiteley, W. Hay, Captain J. P. (Cathcart) Parry, Lieut.-Colonel Thomas Henry Williams, T. (York, Don Valley) Hayday, Arthur Ponsonby, Arthur Wilson, C. H. (Sheffield, Attercliffe) Hayes, John Henry (Edge Hill) Potts, John S. Wintringham, Margaret Herriotts, J. Pringle, W. M. R. Wood, Major M. M. (Aberdeen, C.) Hill, A. Richards, R. Wright, W. Hillary, A. E. Richardson, R. (Houghton-le-Spring) Hinds, John Riley, Ben TELLERS FOR THE AYES .—Sir A. Marshall and Mr. Phillipps..—Sir A. Marshall and Mr. Phillipps. Hirst, G. H. Ritson, J. Hodge, Rt. Hon. John
NOES. Agg-Gardner, Sir James Tynte Brown, Brig.-Gen. Clifton (Newbury) Cory, Sir J. H. (Cardiff, South) Alexander, E. E. (Leyton, East) Brown, J. W. (Middlesbrough, E.) Courthope, Lieut.-Col. George L. Alexander, Col. M. (Southwark) Bruton, Sir James Craig, Captain C. C. (Antrim, South) Allen, Lieut.-Col. Sir William James Buckingham, Sir H. Craik, Rt. Hon. Sir Henry Amery, Rt. Hon. Leopold C. M. S. Buckley, Lieut.-Colonel A. Crook, C. W. (East Ham, North) Ashley, Lt.-Col. Wilfrid W. Bull, Rt. Hon. Sir William James Crooke, J. Smedley (Deritend) Baird, Rt. Hon. Sir John Lawrence Burney, Com. (Middx., Uxbridge) Curzon, Captain Viscount Baldwin, Rt. Hon. Stanley Butcher, Sir John George Dalziel, Sir D. (Lambeth, Brixton) Banbury, Rt. Hon. Sir Frederick G. Butler, H. M. (Leeds, North) Davidson, J. C. C.(Hemel Hempstead) Banks, Mitchell Button, H. S. Davidson, Major-General Sir J. H. Barlow, Rt. Hon. Sir Montague Cadogan, Major Edward Davies, Alfred Thomas (Lincoln) Barnett, Major Richard W. Campion, Lieut.-Colonel W. R. Davies, Thomas (Cirencester) Barnston, Major Harry Cassels, J. D. Davison, Sir W. H. (Kensington, S.) Bell, Lieut.-Col. W. C. H. (Devizes) Cautley, Henry Strother Dixon, C. H. (Rutland) Bellairs, Commander Carlyon W. Cayzer, Sir C. (Chester, City) Doyle, N. Grattan Benn, Sir A. S. (Plymouth, Drake) Cecil, Rt. Hon. Sir Evelyn (Aston) Du Pre, Colonel William Baring Bennett, Sir T. J. (Sevenoaks) Cecil, Rt. Hon. Lord R. (Hitchin) Edmondson, Major A. J. Bentinck, Lord Henry Cavendish- Chamberlain, Rt. Hn. J. A. (Birm. W.) Ednam, Viscount Berry, Sir George Chamberlain, Rt. Hon. N. (Ladywood) Elliot, Captain Walter E. (Lanark) Betterton, Henry B. Chapman, Sir S. England, Lieut.-Colonel A. Bird, Sir William B. M. (Chichester) Churchman, Sir Arthur Erskine, James Malcolm Monteith Blades, Sir George Rowland Clarry, Reginald George Erskine, Lord (Weston-super-Mare) Blundell, F. N. Coates, Lt.-Col. Norman Erskine-Bolst, Captain C. Bowyer, Captain G. E. W. Cobb, Sir Cyril Evans, Capt. H. Arthur (Leicester, E.) Brass, Captain W. Cockerill, Brigadier-General G. K. Evans, Ernest (Cardigan) Brassey, Sir Leonard Colfox, Major Wm. Phillips Eyres-Monsell, Com. Bolton M. Bridgeman, Rt. Hon. William Clive Colvin, Brig.-General Richard Beale Falcon, Captain Michael Briggs, Harold Conway, Sir W. Martin Falle, Major Sir Bertram Godfray Brittain, Sir Harry Cope, Major William Fawkes, Major F. H. Fermor-Hesketh, Major T. Lloyd-Greame, Rt. Hon. Sir Philip Richardson, Lt.-Col. Sir P. (Chertsey) Flanagan, W. H. Locker-Lampson, G. (Wood Green) Roberts, Rt. Hon. G. H. (Norwich) Ford, Patrick Johnston Lorden, John William Roberts, Samuel (Hereford, Hereford) Foxcroft, Captain Charles Talbot Lorimer, H. D. Roberts, Rt. Hon. Sir S. (Ecclesall) Frece, Sir Walter de Lougher, L. Robertson-Despencer, Major (Islgtn, W.) Fremantle, Lieut.-Colonel Francis E. Lowe, Sir Francis William Robinson, Sir T. (Lancs., Stretford) Furness, G. J. Loyd, Arthur Thomas (Abingdon) Rogerson, Capt. J. E. Galbraith, J. F. W. Lumley, L. R. Rothschild, Lionel de Garland, C. S. Lynn, R. J. Roundell, Colonel R. F. Gates, Percy Macnaghten, Hon. Sir Malcolm Ruggles-Brise, Major E. Gaunt, Rear-Admiral Sir Guy R. McNeill, Ronald (Kent, Canterbury) Russell, Alexander West (Tynemouth) Gilmour, Lt.-Col. Rt. Hon. Sir John Macpherson, Rt. Hon. James I. Russell-Wells, Sir Sydney Goff, Sir R. Park Maddocks, Henry Samuel, A. M. (Surrey, Farnham) Gould, James C. Margesson, H. D. R. Samuel, Samuel (W'dsworth, Putney) Greene, Lt.-Col. Sir W. (Hack'y, N.) Martin, A. E. (Essex, Romford) Sanderson, Sir Frank B. Greenwood, William (Stockport) Mason, Lieut.-Col. C. K. Sandon, Lord Grenfell, Edward C. (City of London) Milne, J. S. Wardlaw Sassoon, Sir Philip Albert Gustave D. Gretton, Colonel John Mitchell, Sir W. Lane (Streatham) Sheffield, Sir Berkeley Guest, Hon. C. H. (Bristol, N.) Moles, Thomas Shepperson, E. W. Guinness, Lieut.-Col. Hon. W. E. Molson, Major John Elsdale Simpson-Hinchcliffe, W. A. Gwynne, Rupert S. Moore, Major-General Sir Newton J. Skelton, A. N. Hacking, Captain Douglas H. Moore-Brabazon, Lieut.-Col. J. T. C. Smith, Sir Harold (Wavertree) Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Moreing, Captain Algernon H. Somerville, A. A. (Windsor) Halstead, Major D. Morrison, Hugh (Wilts, Salisbury) Somerville, Daniel (Barrow-in-Furn'ss) Hamilton, Sir George C. (Altrincham) Morrison-Bell, Major A. C. (Honiton) Stanley, Lord Hannon, Patrick Joseph Henry Murchison, C. K. Steel, Major S. Strang Harrison, F. C. Nall, Major Joseph Stewart, Gershom (Wirral) Henderson, Sir T. (Roxburgh) Nesbitt, Robert C. Stockton, Sir Edwin Forsyth Henn, Sir Sydney H. Newman, Sir R. H. S. D. L. (Exeter) Sueter, Rear-Admiral Murray Fraser Hennessy, Major J. R. G. Newson, Sir Percy Wilson Sugden, Sir Wilfrid H. Herbert, Dennis (Hertford, Watford) Nicholson, Brig.-Gen. J. (Westminster) Sutherland, Rt. Hon. Sir William Herbert, S. (Scarborough) Nicholson, William G. (Petersfield) Sykes, Major-Gen. Sir Frederick H. Hewett, Sir J. P. Norton-Griffiths, Lieut.-Col. Sir John Terrell, Captain R. (Oxford, Henley) Hilder, Lieut.-Colonel Frank Ormsby-Gore, Hon. William Thompson, Luke (Sunderland) Hiley, Sir Ernest Paget, T. G. Thomson, F. C. (Aberdeen, South) Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Parker, Owen (Kettering) Thorpe, Captain John Henry Hogg, Rt. Hon. Sir D. (St. Marylebone) Pease, William Edwin Titchfield, Marquess of Hohler, Gerald Fitzroy Penny, Frederick George Tryon, Rt. Hon. George Clement Hood, Sir Joseph Percy, Lord Eustace (Hastings) Turton, Edmund Russborough Hopkins, John W. W. Perkins, Colonel E. K. Ward, Col. L. (Kingston-upon-Hull) Hopkinson, A. (Lancaster, Mossley) Perring, William George Watts, Dr. T. (Man., Withington) Houfton, John Plowright Peto, Basil E. Wells, S. R. Howard, Capt. D. (Cumberland, N.) Pilditch, Sir Philip Weston, Colonel John Wakefield Howard-Bury, Lieut.-Col. C. K. Pollock, Rt. Hon. Sir Ernest Murray Wheler, Col. Granville C. H. Hudson, Capt. A. Pownall, Lieut.-Colonel Assheton White, Lt.-Col. G. D. (Southport) Hughes, Collingwood Preston, Sir W. R. Whitla, Sir William Hurd, Percy A. Pretyman, Rt. Hon. Ernest G. Windsor-Clive, Lieut.-Colonel George Hurst, Lt.-Col. Gerald Berkeley Price, E. G. Winterton, Earl Hutchison, G. A. C. (Midlothian, N.) Privett, F. J. Wise, Frederick Hutchison, W. (Kelvingrove) Raeburn, Sir William H. Wolmer, Viscount Inskip, Sir Thomas Walker H. Raine, W. Wood, Rt. Hon. Edward F. L.(Ripon) Jackson, Lieut.-Colonel Hon. F. S. Rankin, Captain James Stuart Wood, Sir H. K. (Woolwich, West) James, Lieut.-Colonel Hon. Cuthbert Rawlinson, Rt. Hon. John Fredk. Peel Woodcock, Colonel H. C. Jenkins, W. A. (Brecon and Radnor) Rawson, Lieut.-Com. A. C. Worthington, Evans, Rt. Hon. Sir L. Jodrell, Sir Neville Paul Rees, Sir Beddoe Yate, Colonel Sir Charles Edward Joynson-Hicks, Sir William Reid, D. D. (County Down) Yerburgh, R. D. T. Kennedy, Captain M. S. Nigel Remnant, Sir James King, Captain Henry Douglas Rentoul, G. S. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Lamb, J. Q. Reynolds, W. G. W. Lane-Fox, Lieut.-Colonel G. R. Rhodes, Lieut.-Col. J. P. Leigh, Sir John (Clapham) Richardson, Sir Alex. (Gravesend)
NEW CLAUSE.—(Amendment to 10 and 11 Geo. V., c. 18, Section 22.)
Section twenty-two of the Finance Act, 1920 (which provided for a deduction from assessable income in respect of dependent relatives), shall have effect as if for the words "twenty-five pounds," there were substituted the words "fifty pounds."—[ Mr. T. Thomson. ]
Brought up, and read the First time.
Motion made, and Question proposed, "That the Clause be read a Second time."—[ Mr. Thomson. ]
I cannot pretend to speak with that charm of manner adopted by the hon. Member for Oxford (Mr. F. Gray) which resulted in him receiving from the Financial Secretary to the Treasury an invitation to dinner. I notice that my hon. Friend the Member for Oxford, realising that the Financial Secretary was a teetotaller, rather hesitated to accept that invitation. I am, however, somewhat hopeful that this new Clause will be accepted by the Solicitor-General. Obviously, it is so reasonable that I am certain that no words of mine are necessary to commend it to the Solicitor-General. Perhaps I may point out that whilst the previous new Clause before the Committee aimed at raising the amount to £75, this new Clause is only intended to raise it from £25 to £50. The people affected by this proposal find it very difficult in most cases to keep these dependents, and personally I think it is impossible to keep them on £25 a year, including food and clothing. I know that £25 was the sum allowed in 1920, but at that time we had a very extravagant Government in office. We have now a Government which is pledged to economy, and I am certain that if they keep their pledges they will be able to accede to the suggestion which is now put forward in this new Clause.
I do not think the hon. Member who has just sat down has made his appeal to the Government on this question with any expectation or hope
that this proposal will be accepted. The various speeches which have been made by the Financial Secretary sufficiently dispose of the suggestion that this is a small allowance which the Exchequer can very well spare. This is part of the whole scheme of relief, and to admit it in this particular case would open the door to an alteration of every scale of relief adopted in the recommendations of the Royal Commission, and that would not be either useful or desirable. On this point I can only echo again what the Financial Secretary had said, and say that we are unable to accept this Amendment.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 170; Noes, 267.
Division No. 228.] AYES. [6.39 p.m. Adams, D. Groves, T. Murnin, H. Adamson, Rt. Hon. William Grundy, T. W. Murray, John (Leeds, West) Adamson, W. M. (Staff., Cannock) Guthrie, Thomas Maule Murray, R. (Renfrew, Western) Alexander, A. V. (Sheffield, Hillsbro') Hall, F. (York, W. R., Normanton) Nichol, Robert Asquith, Rt. Hon. Herbert Henry Hall, G. H. (Merthyr Tydvil) O'Grady, Captain James Attlee, C. R. Hamilton, Sir R. (Orkney & Shetland) Oliver, George Harold Barker, G. (Monmouth, Abertillery) Hardie, George D. Paling, W. Barrie, Sir Charles Coupar (Banff) Hastings, Patrick Parkinson, John Allen (Wigan) Benn, Captain Wedgwood (Leith) Hay, Captain J. P. (Cathcart) Parry, Lieut.-Colonel Thomas Henry Bonwick, A. Hayday, Arthur Ponsonby, Arthur Briant, Frank Hayes, John Henry (Edge Hill) Potts, John S. Broad, F. A. Herriotts, J. Pringle, W. M. R. Bromfield, William Hill, A. Richards, R. Brown, James (Ayr and Bute) Hillary, A. E. Richardson, R. (Houghton-le-Spring) Buchanan, G. Hinds, John Riley, Ben Buckle, J. Hirst, G. H. Ritson, J. Burgess, S. Hodge, Rt. Hon. John Roberts, Frederick O. (W. Bromwich) Burnie, Major J. (Bootle) Hodge Lieut.-Col. J. P. (Preston) Robinson, W. C. (York, Elland) Buxton, Charles (Accrington) Hogge, James Myles Rose, Frank H. Buxton, Noel (Norfolk, North) Hutchison, Sir R. (Kirkcaldy) Royce, William Stapleton Cape, Thomas Irving, Dan Saklatvala, S. Chapple, W. A. Jenkins, W. (Glamorgan, Neath) Salter, Dr. A. Charleton, H. C. John, William (Rhondda, West) Scrymgeour, E. Clarke, Sir E. C. Johnston, Thomas (Stirling) Sexton, James Collie, Sir John Johnstone, Harcourt (Willesden, East) Shakespeare, G. H. Collins, Sir Godfrey (Greenock) Jones, Henry Haydn, (Merioneth) Shaw, Hon. Alex. (Kilmarnock) Cowan, D. M. (Scottish Universities) Jones, J. J. (West Ham, Silvertown) Shaw, Thomas (Preston) Darbishire, C. W. Jones, Morgan (Caerphilly) Shinwell, Emanuel Davies, J. C. (Denbigh, Denbigh) Jones, R. T. (Carnarvon) Short, Alfred (Wednesbury) Davies, Rhys John (Westhoughton) Jones, T. I. Mardy (Pontypridd) Simon, Rt. Hon. Sir John Davison, J. E. (Smethwick) Jowett, F. W. (Bradford, East) Simpson, J. Hope Dudgeon, Major C. R. Jowitt, W. A. (The Hartlepools) Sinclair, Sir A. Duffy, T. Gavan Kenworthy, Lieut.-Commander J. M. Sitch, Charles H. Duncan, C. Kenyon, Barnet Smith, T. (Pontefract) Ede, James Chuter Kirkwood, D. Snell, Harry Edmonds, G. Lambert, Rt. Hon. George Snowden, Philip Edwards, C. (Monmouth, Bedwellty) Lawson, John James Spencer, George A. (Broxtowe) Emlyn-Jones, J. E. (Dorset, N.) Leach, W. Stephenson, Lieut.-Colonel H. K. Entwistle, Major C. F. Lee, F. Stephen, Campbell Evans, Ernest (Cardigan) Lees-Smith, H. B. (Keighley) Stewart, J. (St. Rollox) Fairbairn, R. R. Lowth, T. Sturrock, J. Leng Falconer, J. Lunn, William Sullivan, J. Gilbert, James Daniel MacDonald, J. R. (Aberavon) Thomson, T. (Middlesbrough, West) Gosling, Harry M'Entee, V. L. Thorne, W. (West Ham, Plaistow) Graham, D. M. (Lanark, Hamilton) Maclean, Neil (Glasgow, Govan) Tillett, Benjamin Graham, W. (Edinburgh, Central) Macnamara, Rt. Hon. Dr. T. J. Tout, W. J. Gray, Frank (Oxford) March, S. Trevelyan, C. P. Greenall, T. Maxton, James Turner, Ben Greenwood, A. (Nelson and Colne) Millar, J. D. Twist, H. Grenfell, D. R. (Glamorgan) Morel, E. D. Walsh, Stephen (Lancaster, Ince) Griffiths, T. (Monmouth, Pontypool) Morrison, R. C. (Tottenham, N.) Watson, W. M. (Dunfermline) Grigg, Sir Edward Muir, John W. Watts-Morgan, Lt.-Col. D. (Rhondda) Webb, Sidney White, H. G. (Birkenhead, E.) Wright, W. Wedgwood, Colonel Josiah C. Whiteley, W. Young, Robert (Lancaster, Newton) Welsh, J. C. Williams, T. (York, Don Valley) Westwood, J. Wilson, C. H. (Sheffield, Attercliffe) TELLERS FOR THE AYES .—Mr. Phillipps and Sir A. Marshall..—Mr. Phillipps and Sir A. Marshall. Wheatley, J. Wintringham, Margaret White, Charles F. (Derby, Western) Wood, Major M. M. (Aberdeen, C.)
NOES. Agg-Gardner, Sir James Tynte Ednam, Viscount Lort-Williams, J. Alexander, E. E. (Leyton, East) Elliot, Capt. Walter E. (Lanark) Lougher, L. Alexander, Col. M. (Southwark) England, Lieut.-Colonel A. Lowe, Sir Francis William Allen, Lieut.-Col. Sir William James Erskine, James Malcolm Monteith Loyd, Arthur Thomas (Abingdon) Amery, Rt. Hon. Leopold C. M. S. Erskine, Lord (Weston-super-Mare) Lumley, L. R. Ashley, Lt.-Col. Wilfrid W. Erskine-Bolst, Captain C. Lynn, R. J. Baird, Rt. Hon. Sir John Lawrence Eyres-Monsell, Com. Bolton M. Macnaghten, Hon. Sir Malcolm Baldwin, Rt. Hon. Stanley Falcon, Captain Michael McNeill, Ronald (Kent, Canterbury) Banbury, Rt. Hon. Sir Frederick G. Falle, Major Sir Bertram Godfray Macpherson, Rt. Hon. James I. Banks, Mitchell Fawkes, Major F. H. Maddocks, Henry Barlow, Rt. Hon. Sir Montague Fermor-Hesketh, Major T. Margesson, H. D. R. Barnett, Major Richard W. Flanagan, W. H. Martin, A. E. (Essex, Romford) Barnston, Major Harry Ford, Patrick Johnston Mason, Lieut.-Col. C. K. Becker, Harry Frece, Sir Walter de Milne, J. S. Wardlaw Bell, Lieut.-Col. W. C. H. (Devizes) Fremantle, Lieut.-Colonel Francis E. Mitchell, Sir W. Lane (Streatham) Bellairs, Commander Carlyon W. Furness, G. J. Moles, Thomas Benn, Sir A. S. (Plymouth, Drake) Galbraith, J. F. W. Molson, Major John Elsdale Bentinck, Lord Henry Cavendish- Garland, C. S. Moore, Major-General Sir Newton J. Berry, Sir George Gates, Percy Moore-Brabazon, Lieut.-Col. J. T. C. Betterton, Henry B. Gaunt, Rear-Admiral Sir Guy R. Moreing, Captain Algernon H. Bird, Sir William B. M. (Chichester) Gilmour, Lt.-Col. Rt. Hon. Sir John Morrison, Hugh (Wilts, Salisbury) Blades, Sir George Rowland Goff, Sir R. Park Morrison-Bell, Major A. C. (Honiton) Blundell, F. N. Gould, James C. Murchison, C. K. Bowyer, Captain G. E. W. Greene, Lt.-Col. Sir W. (Hack'y, N.) Nall, Major Joseph Brass, Captain W. Greenwood, William (Stockport) Nesbitt, Robert C. Brassey, Sir Leonard Grenfell, Edward C. (City of London) Newman, Sir R. H. S. D. L. (Exeter) Bridgeman, Rt. Hon. William Clive Gretton, Colonel John Newson, Sir Percy Wilson Briggs, Harold Guest, Hon. C. H. (Bristol, N.) Nicholson, Brig.-Gen. J. (Westminster) Brittain, Sir Harry Guinness, Lieut.-Col. Hon. W. E. Norman, Major Rt. Hon. Sir Henry Brown, Brig.-Gen. Clifton (Newbury) Gwynne Rupert S. Norton-Griffiths, Lieut.-Col. Sir John Brown, J. W. (Middlesbrough, E.) Hacking, Captain Douglas H. Ormsby-Gore, Hon. William Bruton, Sir James Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Paget, T. G. Buckingham, Sir H. Halstead, Major D. Parker, Owen (Kettering) Buckley, Lieut.-Colonel A. Hamilton, Sir George C. (Altrincham) Pease, William Edwin Bull, Rt. Hon. Sir William James Hannon, Patrick Joseph Henry Penny, Frederick George Burney, Com. (Middx., Uxbridge) Harmsworth, Hon. E. C. (Kent) Percy, Lord Eustace (Hastings) Butcher, Sir John George Harrison, F. C. Perkins, Colonel E. K. Butler, H. M. (Leeds, North) Henderson, Sir T. (Roxburgh) Perring, William George Button, H. S. Henn, Sir Sydney H. Peto, Basil E. Cadogan, Major Edward Hennessy, Major J. R. G. Pilditch, Sir Philip Campion, Lieut.-Colonel W. R. Herbert, Dennis (Hertford, Watford) Pollock, Rt. Hon. Sir Ernest Murray Cassels, J. D. Herbert, S. (Scarborough) Pownall, Lieut.-Colonel Assheton Cautley, Henry Strother Hewett, Sir J. P. Preston, Sir W. R. Cayzer, Sir C. (Chester, City) Hilder, Lieut.-Colonel Frank Pretyman, Rt. Hon. Ernest G. Cecil, Rt. Hon. Sir Evelyn (Aston) Hiley, Sir Ernest Price, E. G. Cecil, Rt. Hon. Lord R. (Hitchin) Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Privett, F. J. Chamberlain, Rt. Hn. J. A. (Birm., W.) Hogg, Rt. Hon. Sir D. (St. Marylebone) Raeburn, Sir William H. Chamberlain, Rt. Hon. N. (Ladywood) Hohler, Gerald Fitzroy Raine, W. Chapman, Sir S. Hood, Sir Joseph Rankin, Captain James Stuart Churchman, Sir Arthur Hopkins, John W. W. Rawlinson, Rt. Hon. John Fredk. Peel Clarry, Reginald George Hopkinson, A. (Lancaster, Mossley) Rawson, Lieut.-Com. A. C. Coates, Lt.-Col. Norman Horne, Sir R. S. (Glasgow, Hillhead) Rees, Sir Beddoe Cobb, Sir Cyril Houfton, John Plowright Reid, D. D. (County Down) Cockerill, Brigadier-General G. K. Howard, Capt. D. (Cumberland, N.) Remnant, Sir James Colfox, Major Wm. Phillips Howard-Bury, Lieut.-Col. C. K. Rentoul, G. S. Colvin, Brig.-General Richard Beale Hudson, Capt. A. Reynolds, W. G. W. Conway, Sir W. Martin Hughes, Collingwood Rhodes, Lieut.-Col. J. P. Cope, Major William Hurd, Percy A. Richardson, Sir Alex. (Gravesend) Cory, Sir J. H. (Cardiff, South) Hurst, Lt.-Col. Gerald Berkeley Richardson, Lt.-Col. Sir P. (Chertsey) Courthope, Lieut.-Col. George L. Hutchison, G. A. C. (Midlothian, N.) Roberts, Rt. Hon. G. H. (Norwich) Craig, Captain C. C. (Antrim, South) Hutchison, W. (Kelvingrove) Roberts, Samuel (Hereford, Hereford) Craik, Rt. Hon. Sir Henry Inskip, Sir Thomas Walker H. Roberts, Rt. Hon. Sir S. (Ecclesall) Crook, C. W. (East Ham, North) Jackson, Lieut.-Colonel Hon. F. S. Robertson-Despencer, Major (Islgtn, W.) Crooke, J. Smedley (Deritend) James, Lieut.-Colonel Hon. Cuthbert Robinson, Sir T. (Lancs., Stretford) Curzon, Captain Viscount Jenkins, W. A. (Brecon and Radnor) Rogerson, Capt. J. E. Dalzlel, Sir D. (Lambeth, Brixton) Jodrell, Sir Neville Paul Rothschild, Lionel de Davidson, J. C. C. (Hemel Hempstead) Joynson-Hicks, Sir William Roundell, Colonel R. F. Davidson, Major-General Sir J. H. Kennedy, Captain M. S. Nigel Ruggles-Brise, Major E. Davies, Alfred Thomas (Lincoln) King, Captain Henry Douglas Russell, Alexander West (Tynemouth) Davies, David (Montgomery) Lamb, J. Q. Russell-Wells, Sir Sydney Davies, Thomas (Cirencester) Lane-Fox, Lieut.-Colonel G. R. Samuel, A. M. (Surrey, Farnham) Davison, Sir W. H. (Kensington, S.) Leigh, Sir John (Clapham) Samuel, Samuel (W'dsworth, Putney) Dixon, C. H. (Rutland) Lloyd-Greame, Rt. Hon. Sir Philip Sanderson, Sir Frank B. Doyle, N. Grattan Locker-Lampson, G. (Wood Green) Sandon, Lord Du Pre, Colonel William Baring Lorden, John William Sassoon, Sir Philip Albert Gustave D. Edmondson, Major A. J. Lorimer, H. D. Sheffield, Sir Berkeley Shepperson, E. W. Sykes, Major-Gen. Sir Frederick H. Whitla, Sir William Simpson-Hinchcliffe, W. A. Terrell, Captain R. (Oxford, Henley) Windsor-Clive, Lieut.-Colonel George Skelton, A. N. Thompson, Luke (Sunderland) Winterton, Earl Smith, Sir Harold (Wavertree) Thomson, F. C. (Aberdeen, South) Wise, Frederick Somerville, A. A. (Windsor) Thorpe, Captain John Henry Wolmer, Viscount Somerville, Daniel (Barrow-in-Furness) Titchfield, Marquess of Wood, Rt. Hon. Edward F. L. (Ripon) Spender-Clay, Lieut.-Colonel H. H. Tryon, Rt. Hon. George Clement Wood, Sir H. K. (Woolwich, West) Stanley, Lord Turton, Edmund Russborough Woodcock, Colonel H. C. Steel, Major S. Strang Ward, Col. L. (Kingston-upon-Hull) Worthington-Evans, Rt. Hon. Sir L. Stewart, Gershom (Wirral) Watts, Dr. T. (Man., Withington) Yate, Colonel Sir Charles Edward Stockton, Sir Edwin Forsyth Wells, S. R. Yerburgh, R. D. T. Sueter, Rear-Admiral Murray Fraser Weston, Colonel John Wakefield Sugden, Sir Wilfrid H. Wheler, Col. Granville C. H. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Sutherland, Rt. Hon. Sir William White, Lt.-Col. G. D. (Southport)
NEW CLAUSE.—(Reduced Customs duties on sugar.)
In lieu of the present Customs duties, drawbacks, and allowances in respect of sugar, molasses, glucose, and saccharine, there shall as from the first day of September, nineteen hundred and twenty-three, be charged, levied, and paid the duties specified in Part I of the First Schedule to this Act and there shall be paid and allowed the drawbacks and allowances set out in Part II of that Schedule.—[ Mr. Hillary. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
After what occurred yesterday afternoon in connection with our case for these remissions, I do not intend to take up the time of the Committee. I simply move this Clause in the hope that we may get some form of remission even in the interests of the manufacturers.
Are we going to have any reply from the Government on this Motion. I think we are entitled to one after the excellent speech of the hon. Member for Harwich (Mr. Hillary).
I would have been very glad to reply to the hon. Member's speech if I could have heard a word of it. No doubt it was not his fault, but it was due to the excitement in the Chamber.
Shall I make it again?
I think the hon. Member mentioned something to the effect that the interests of the manufacturers had led him to intervene, but my right hon. Friend's speeches yesterday afternoon, when a very full Debate took place in this House, must have prepared hon. Members for the decision, which I am bound to repeat, that the Government are unable to grant any remission at all on the lines of the proposal of the hon. Member. It is almost superfluous for me to repeat what the Prime Minister has stated over and over again in the prolonged Debates on the Budget, namely, that the effect of reducing or of removing the Sugar Duty would simply be to give the benefit to speculators abroad and not to the consumer in this country. It is all very well for hon. Members opposite to demur to the accuracy of that statement by the Prime Minister, but I think I am right in saying that the hon. Gentleman who leads the Opposition was not prepared to deny the accuracy of my right hon. Friend's conclusion provided his premises were correct. He said in almost so many words that, if the facts stated by the Prime Minister in his two speeches on the Budget were accurate, he would be prepared to accept his conclusion, but what he did dispute was the fact on which the statement was based. As a reason for disputing the Prime Minister's statement of fact he read some passages from a printed document of which he did not give the title, but which contained statements undoubtedly rather suggesting that the rise in prices to which the Prime Minister had referred was due to some panic which had taken place in the United States of America. That is a matter on which there may very well be a difference of opinion, but the Prime Minister and his advisers are satisfied that the facts are such as to lead to the conclusion which he has expressed to the House on more than one occasion.
The only proposal we discussed last night was one for the repeal of the Sugar Duty to take effect almost immediately. The hon. Member's proposal is to postpone until a rather later date a reduction in the duty and to reduce it instead of repealing it. But the reduction is open to precisely the same objection as the repeal proposal, and to postpone the operation of the reduction would be much more objectionable even than a proposal to repeal the duty at once, for it would inevitably result in disorganising the industry. Anyone can easily imagine how persons who use duty paid sugar would as far as possible reduce the use of that sugar until the happy day when the duty would be lowered. That would not be in the interests of manufacturers. It would not be in the interests of the people employed by the manufacturers, and it would lead in the end to the condition of things which the Prime Minister imagined. On these grounds, and for the reasons my right hon. Friend stated last night, the Government are unable to accept even the hon. Member's modified proposal.
May I say just a word in reply. I think the hon. and learned Gentleman has very much strengthened the case for the new Clause. He told us that the manufacturers would try to cut down their consumption of sugar until the postponed reduction came in force. Does not that meet the case put forward by the Prime Minister that the price would go up? I venture to think if the figures given by the Prime Minister are correct there is bound to be a rise in the price of sugar in any case. Why then do the Government keep on this high tax? I hope my hon. Friend will stick to his Amendment.
I did not intend to say anything, and would not have done so had it not been for the remarkable speech just made by the Solicitor-General. The hon. and learned Gentleman repeated what the Prime Minister had said would happen to the price of sugar if the duty were repealed or reduced, but he did not explain why the price of sugar has gone down 5s. per cwt. in the last two days. It has gone down even with the present high duty upon it, and if that duty were reduced
I venture to submit the price would go down still further. The argument we had advanced yesterday seemed to me extraordinary. It was, if you lower the duty of a commodity and the consumption increases, the price will go up. Are we to take the converse that if the consumption diminishes the price will go down? I do not think anybody would accept such an argument. The truth is the Government do not want to sacrifice revenue. Why do they not candidly say so, and give up endeavouring to juggle with the opinions of people who are interested in the sugar trade? I think most of us have received a paper signed by the leading sugar refiners, who certainly should know quite as much about the probable cost of sugar as anyone, and they give very cogent arguments against the conclusions drawn by the Prime Minister.
I was not referring to that paper; I was referring to one mentioned by the Leader of the Opposition.
I am astonished if the learned Solicitor-General has not had a copy of the paper. Certainly his advisers should have had it and should have carefully studied it, for the opinions contained in it are quite as important as those of any other people in the sugar trade. They are the opinions of people employing a large amount of labour in this country. I confess I am not so very much impressed by the argument of the hon. and learned Gentleman, and he has not convinced me at any rate that he could not have accepted this Amendment if he wanted to lower the price of sugar to the people of this country.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 191; Noes, 271.
Division No. 229.] AYES. [6.57 p.m. Adams, D. Broad, F. A. Clarke, Sir E. C. Adamson, Rt. Hon. William Bromfield, William Collie, Sir John Adamson, W. M. (Staff., Cannock) Brown, James (Ayr and Bute) Collins, Sir Godfrey (Greenock) Alexander, Col. M. (Southwark) Buchanan, G. Collison, Levi Alexander, A. V. (Sheffield, Hillsbro') Buckle, J. Cowan, D. M. (Scottish Universities) Asquith, Rt. Hon. Herbert Henry Burgess, S. Darbishire, C. W. Attlee, C. R. Burnie, Major J. (Bootle) Davies, Alfred Thomas (Lincoln) Barker, G. (Monmouth, Abertillery) Buxton, Charles (Accrington) Davies, David (Montgomery) Barrie, Sir Charles Coupar (Banff) Buxton, Noel (Norfolk. North) Davies, J. C. (Denbigh, Denbigh) Benn, Captain Wedgwood (Leith) Cape, Thomas Davies, Rhys John (Westhoughton) Bonwick, A. Chapple, W. A. Davison, J. E. (Smethwick) Briant, Frank Charleton, H. C. Duffy, T. Gavan Duncan, C. Jones, Morgan (Caerphilly) Saklatvala, S. Ede, James Chuter Jones, R. T. (Carnarvon) Salter, Dr. A. Edmonds, G. Jones, T. I. Mardy (Pontypridd) Scrymgeour, E. Edwards, C. (Monmouth, Bedwellty) Jowett, F. W. (Bradford, East) Sexton, James Emlyn-Jones, J. E. (Dorset, N.) Jewitt, W. A. (The Hartlepools) Shaw, Hon. Alex. (Kilmarnock) England, Lieut.-Colonel A. Kenworthy, Lieut.-Commander J. M. Shaw, Thomas (Preston) Entwistle, Major C. F. Kenyon, Barnet Shinwell, Emanuel Evans, Ernest (Cardigan) Kirkwood, D. Short, Alfred (Wednesbury) Fairbairn, R. R. Lambert, Rt. Hon. George Simon, Rt. Hon. Sir John Falconer, J. Lawson, John James Simpson, J. Hope Fildes, Henry Leach, W. Sinclair, Sir A. Gilbert, James Daniel Lee, F. Sitch, Charles H. Gosling, Harry Lowth, T. Smith, T. (Pontefract) Graham, D. M. (Lanark, Hamilton) Lunn, William Snell, Harry Graham, W. (Edinburgh, Central) MacDonald, J. R. (Aberavon) Snowden, Philip Gray, Frank (Oxford) Macdonald, Sir Murdoch (Inverness) Spencer, George A. (Broxtowe) Greenall, T. M'Entee, V. L. Stephenson, Lieut.-Colonel H. K. Greenwood, A. (Nelson and Colne) McLaren, Andrew Stephen, Campbell Grenfell, D. R. (Glamorgan) Maclean, Neil (Glasgow, Govan) Stewart, J. (St. Rollox) Griffiths, T. (Monmouth, Pontypool) Macnamara, Rt. Hon. Dr. T. J. Sturrock, J. Leng Grigg, Sir Edward Macpherson, Rt. Hon. James I. Sullivan, J. Groves, T. March, S. Sutherland, Rt. Hon. Sir William Grundy, T. W. Maxton, James Thomas, Rt. Hon. James H. (Derby) Guest, Hon. C. H. (Bristol, N.) Middleton, G. Thomson, T. (Middlesbrough, West) Guthrie, Thomas Maule Millar, J. D. Thorne, W. (West Ham, Plaistow) Hall, F. (York, W.R., Normanton) Mond, Rt. Hon. sir Alfred Moritz Tillett, Benjamin Hall, G. H. (Merthyr Tydvil) Moreing, Captain Algernon H. Tout, W. J. Hamilton, Sir R. (Orkney & Shetland) Morel, E. D. Trevelyan, C. P. Harbord, Arthur Morrison, R. C. (Tottenham, N.) Turner, Ben Hardle, George D. Muir, John W. Twist, H. Hastings, Patrick Murnin, H. Walsh, Stephen (Lancaster, Ince) Hay, Captain J. P. (Cathcart) Murray, John (Leeds, West) Watson, W. M. (Dunfermline) Hayday, Arthur Murray, R. (Renfrew, Western) Watts-Morgan, Lt.-Col. D. (Rhondda) Hayes, John Henry (Edge Hill) Nichol, Robert Webb, Sidney Hemmerde, E. G. O'Grady, Captain James Wedgwood, Colonel Josiah C. Henderson, Sir T. (Roxburgh) Oliver, George Harold Weir, L. M. Herriotts, J. Paling, W. Welsh, J. C. Hill, A. Parkinson, John Allen (Wigan) Westwood, J. Hillary, A. E. Parry, Lieut.-Colonel Thomas Henry Wheatley, J. Hinds, John Ponsonby, Arthur White, Charles F. (Derby, Western) Hirst, G. H. Potts, John S. White, H. G. (Birkenhead, E.) Hodge, Rt. Hon. John Price, E. G. Whiteley, W. Hodge, Lieut.-Col. J. P. (Preston) Pringle, W. M. R. Williams, T. (York, Don Valley) Hogge, James Myles Rees, Sir Beddoe Wilson, C. H. (Sheffield, Attercliffe) Hutchison, Sir R. (Kirkcaldy) Richards, R. Wintringham, Margaret Irving Dan Richardson, R. (Houghton-le-Spring) Wood, Major M. M. (Aberdeen, C.) Jarrett, G. W. S. Riley, Ben Wright, W. Jenkins, W. (Glamorgan, Neath) Ritson, J. Young, Rt. Hon. E. H. (Norwich) John, William (Rhondda, West) Roberts, C. H. (Derby) Young, Robert (Lancaster, Newton) Johnston, Thomas (Stirling) Roberts, Frederick O. (W. Bromwich) Johnstone, Harcourt (Willesden, East) Robinson, W. C. (York, Elland) TELLERS FOR THE AYES .—Mr. Phillipps and Sir A. Marshall..—Mr. Phillipps and Sir A. Marshall. Jones, Henry Haydn, (Merioneth) Rose, Frank H. Jones, J. J. (West Ham, Silvertown) Royce, William Stapleton
NOES. Agg-Gardner, Sir James Tynte Brittain, Sir Harry Conway, Sir W. Martin Alexander, E. E. (Leyton, East) Brown, Brig.-Gen. Clifton (Newbury) Cope, Major William Allen, Lieut.-Col. Sir William James Brown, J. w. (Middlesbrough, E.) Cory, Sir J. H. (Cardiff, South) Amery, Rt. Hon. Leopold C. M. S. Bruton, sir James Courthope, Lieut.-Col. George L. Ashley, Lt.-Col. Wilfrid W. Buckingham, Sir H. Craig, Captain C. C. (Antrim, South) Astbury, Lieut.-Com. Frederick W. Buckley, Lieut.-Colonel A. Craik, Rt. Hon. Sir Henry Baird, Rt. Hon. Sir John Lawrence Bull, Rt. Hon. Sir William James Crook, C. W. (East Ham, North) Baldwin, Rt. Hon. Stanley Burn, Colonel Sir Charles Rosdew Crooke, J. Smedley (Deritend) Banbury, Rt. Hon. Sir Frederick G. Burney, Com. (Middx., Uxbridge) Curzon, Captain Viscount Banks, Mitchell Butcher, Sir John George Dalziel, Sir D. (Lambeth, Brixton) Barlow, Rt. Hon. Sir Montague Butler, H. M. (Leeds, North) Davidson, J. C. C. (Hemel Hempstead) Barnett, Major Richard W. Button, H. S. Davidson, Major-General Sir J. H. Barnston, Major Harry Cadogan, Major Edward Davles, Thomas (Cirencester) Becker, Harry Campion, Lieut.-Colonel W. R. Davison, Sir W. H. (Kensington, S.) Bell, Lieut.-Col. W. C. H. (Devizes) Cassels, J. D. Dixon, C. H. (Rutland) Bellairs, Commander Carlyon W. Cautley, Henry Strother Doyle, N. Grattan Benn, Sir A. S. (Plymouth, Drake) Cayzer, Sir C. (Chester, City) Dudgeon, Major C. R Bennett, Sir T. J. (Sevenoaks) Cecil, Rt. Hon. Sir Evelyn (Aston) Du Pre, Colonel William Baring Bentinck, Lord Henry Cavendish- Cecil, Rt. Hon. Lord R. (Hitchin) Edmondson, Major A. J. Berry, Sir George Chamberlain, Rt. Hn. J. A. (Birm. W.) Ednam, Viscount Betterton, Henry B. Chamberlain, Rt. Hon. N. (Ladywood) Elliot, Capt. Walter E. (Lanark) Bird, Sir William B. M. (Chichester) Chapman, Sir S. Erskine, James Malcolm Monteith Blades, Sir George Rowland Churchman, Sir Arthur Erskine, Lord (Weston-super-Mare) Blundell, F. N. Clarry, Reginald George Erskine-Bolst, Captain C. Bowyer, Captain G. E. W. Coates, Lt.-Col. Norman Eyres-Monsell, Com. Bolton M. Brass, Captain W. Cobb, Sir Cyril Falcon, Captain Michael Brassey, Sir Leonard Cockerill, Brigadier-General G. K. Falle, Major Sir Bertram Godfray Bridgeman, Rt. Hon. William Clive Colfox, Major Wm. Phillips Fawkes, Major F. H. Briggs, Harold Colvin, Brig.-General Richard Beale Fermor-Hesketh, Major T. Flanagan, W. H. Lloyd-Greame, Rt. Hon. Sir Philip Roberts, Rt. Hon. Sir S.(Ecclesall) Ford, Patrick Johnston Locker-Lampson, G. (Wood Green) Robertson- Despencer, Major (Islgtn,W) Foxcroft, Captain Charles Talbot Locker-Lampson, Com. O. (Handsw'th) Robinson, Sir T. (Lancs., Stretford) Fraser, Major Sir Keith Lorden, John William Rogerson, Capt. J. E. Frece, Sir Walter de Lorimer, H. D. Rothschild, Lionel de Fremantle, Lieut.-Colonel Francis E. Lort-Williams, J. Roundell, Colonel R. F. Furness, G. J. Lougher, L. Ruggles-Brise, Major E. Galbraith, J. F. W. Lowe, Sir Francis William Russell, Alexander West (Tynemouth) Garland, C. S. Loyd, Arthur Thomas (Abingdon) Russell-Wells, Sir Sydney Gates, Percy Lumley, L. R. Samuel, A. M. (Surrey, Farnham) Gaunt, Rear-Admiral Sir Guy R. Lynn, R. J. Samuel, Samuel (W'dsworth, Putney) Gilmour, Lt.-Col. Rt. Hon. Sir John Macnaghten, Hon. Sir Malcolm Sanderson, Sir Frank B. Goff, Sir R. Park McNeill, Ronald (Kent, Canterbury) Sandon, Lord Gould, James C. Maddocks, Henry Sassoon, Sir Philip Albert Gustave D. Greene, Lt.-Col. Sir W. (Hack'y, N.) Margesson, H. D. R. Shakespeare, G. H. Greenwood, William (Stockport) Martin, A. E. (Essex, Romford) Sheffield, Sir Berkeley Grenfell, Edward C. (City of London) Mason, Lieut.-Col. C. K. Shepperson E. W. Gretton, Colonel John Milne, J. S. Wardlaw Simpson-Hinchcliffe, W. A. Guinness, Lieut.-Col. Hon. W. E. Mitchell, Sir W. Lane (Streatham) Skelton, A. N. Gwynne, Rupert S. Moles, Thomas Smith, Sir Allan M. (Croydon, South) Hacking, Captain Douglas H. Molson, Major John Elsdale Smith, Sir Harold (Wavertree) Hall, Lieut.-Col. Sir F. (Dulwich) Moore, Major-General Sir Newton J. Somerville, A. A. (Windsor) Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Morrison, Hugh (Wilts, Salisbury) Somerville, Daniel (Barrow-in-Furness) Halstead, Major D. Morrison-Bell, Major A. C. (Honiton) Spender-Clay, Lieut.-Colonel H. H. Hamilton, Sir George C. (Altrincham) Murchison, C. K. Stanley, Lord Hannon, Patrick Joseph Henry Nall, Major Joseph Steel, Major S. Strang Harmsworth, Hon. E. C. (Kent) Nesbitt, Robert C. Stewart, Gershom (Wirral) Harrison, F. C. Newman, Sir R. H. S. D. L. (Exeter) Stockton, Sir Edwin Forsyth Henn, Sir Sydney H. Newson, Sir Percy Wilson Sueter, Rear-Admiral Murray Fraser Hennessy, Major J. R. G. Nicholson, Brig.-Gen. J. (Westminster) Sugden, Sir Wilfrid H. Herbert, Dennis (Hertford, Watford) Nicholson, William G. (Petersfield) Sykes, Major-Gen. Sir Frederick H. Herbert, S. (Scarborough) Norman, Major Rt. Hon. Sir Henry Terrell, Captain R. (Oxford, Henley) Hewett, Sir J. P. Norton-Griffiths, Lieut.-Col. Sir John Thompson, Luke (Sunderland) Hilder, Lieut.-Colonel Frank Ormsby-Gore, Hon. William Thomson, F. C. (Aberdeen, South) Hiley, Sir Ernest Paget, T. G. Thorpe, Captain John Henry Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Parker, Owen (Kettering) Titchfield, Marquess of Hogg, Rt. Hon. Sir D. (St. Marylebone) Pease, William Edwin Tryon, Rt. Hon. George Clement Hohler, Gerald Fitzroy Penny, Frederick George Turton, Edmund Russborough Hood, Sir Joseph Percy, Lord Eustace (Hastings) Ward, Col. L. (Kingston-upon-Hull) Hopkins, John W. W. Perkins, Colonel E. K. Waring, Major Walter Hopkinson, A. (Lancaster, Mossley) Perring, William George Watson, Capt. J. (Stockton-on-Tees) Horne, Sir R. S. (Glasgow, Hillhead) Peto, Basil E. Watts, Dr. T. (Man., Withington) Houfton, John Plowright Philipson, Mabel Wells, S. R. Howard, Capt. D. (Cumberland, N.) Pllditch, Sir Philip Weston, Colonel John Wakefield Howard-Bury, Lieut.-Col. C. K. Pollock, Rt. Hon. Sir Ernest Murray Wheler. Col. Granville C. H. Hudson, Capt. A. Pownall, Lieut.-Colonel Assheton White, Lt.-Col. G. D. (Southport) Hughes, Collingwood Preston, Sir W. R. Whitla, Sir William Hurd, Percy A. Pretyman, Rt. Hon. Ernest G. Windsor-Clive, Lieut.-Colonel George Hurst, Lt.-Col. Gerald Berkeley Privett, F. J. Winterton, Earl Hutchison, G. A. C. (Midlothian, N.) Raeburn, Sir William H. Wise, Frederick Hutchison, W. (Kelvingrove) Ralne, W. Wolmer, Viscount Inskip, Sir Thomas Walker H. Rankin, Captain James Stuart Wood, Rt. Hon. Edward F. L. (Ripon) Jackson, Lieut.-Colonel Hon. F. S. Rawlinson, Rt. Hon. John Fredk. Peel Wood, Sir H. K. (Woolwich, West) James, Lieut.-Colonel Hon. Cuthbert Rawson, Lieut.-Com. A. C. Wood, Maj. Sir S. Hill- (High Peak) Jenkins, W. A. (Brecon and Radnor) Reid, D. D. (County Down) Woodcock, Colonel H. C. Jephcott, A. R. Remnant, Sir James Worthington-Evans, Rt. Hon. Sir L. Jodrell, Sir Neville Paul Rentoul, G. S. Yate, Colonel Sir Charles Edward Joynson-Hicks, Sir William Reynolds, W. G. W. Yerburgh, R. D. T. Kennedy, Captain M. S. Nigel Rhodes, Lieut.-Col. J. P. King, Captain Henry Douglas Richardson, Sir Alex. (Gravesend) TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Lamb, J. Q. Richardson, Lt.-Col. Sir P. (Chertsey) Lane-Fox, Lieut.-Colonel G. R. Roberts, Rt. Hon. G. H. (Norwich) Leigh, Sir John (Clapham) Roberts, Samuel (Hereford, Hereford)
NEW CLAUSE.—(Provisions as to abatement of Income Tax in certain cases.)
When in the case of a company, firm, or partnership, which is chargeable to Income Tax in respect of its profits under the Income Tax Acts, a part of those profits is reserved for the general purposes of the company, firm, or partnership, and is not distributed by way of dividend or share, or otherwise among the constituent members or partners thereof, there shall be allowed an abatement of two-ninths of the rates of Income Tax otherwise chargeable on such part of those profits, and Income Tax for the year nineteen hundred and twenty-three to nineteen hundred and twenty-four shall be at the rate of three shillings and sixpence. If the Income Tax for any succeeding year is reduced, the Income Tax chargeable on such part of the profits shall be reduced in the proportion of two-ninths.
If any of the profits in respect of which any abatement is allowed under this Section of this Act as being undistributed are at any time distributed by way of shares or otherwise, such profits shall be chargeable to Income Tax for the year in which they are so distributed at the average rate in force for the period during which such profits have been undistributed, according to the rules applicable to each case under the Income Tax Acts.—[ Sir A. Mond. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
In the discussions which have taken place on a number of occasions on the reduction of direct taxation, and especially of Income Tax, it has been urged from many quarters of the House that the reduction of Income Tax is not of any advantage to the trade or business interests in the country, and that from it does not arise any expansion of business or greater employment of labour. Although I do not share that view, it can be argued, and it has been argued with some force, that a proportion of the money distributed as profits and dividends of a business does not return into the industry, but may be utilised in an entirely uneconomic manner. I want to point out that the proposal which I have put before the Committee is not at any rate open to that charge. Any reduction which is made in the Income Tax for the purposes I have indicated is for moneys which remain absolutely and entirely in the business which created these profits, and therefore go necessarily to their further development or increase or for the enhancement of its value. It is therefore a procedure which is of direct interest to all those to whom the future welfare of commerce and industry in this country is of paramount importance. I therefore hope that the attitude so far taken up by the Government—an attitude which I fully understand—regarding the making of concessions on various duties will not be persisted in on this new Clause.
It is generally recognised throughout the economic and commercial world that the enormous direct taxation is a direct bar to the development of business. You have still an unemployment figure which unfortunately is mounting again and which is over 1,000,000. You are spending vast sums in keeping these unemployed people alive, and if there be any financial expedient in itself sound which can be utilised for diminishing this burden, and assisting the unemployment question—any system of relief of industry which can be utilised to help us to regain that rebound which has been so sadly lacking in the last few years—it should deserve, and I hope will obtain, the most careful consideration of those responsible at the present time for the government of this country. The method I have adopted is the simple one of making a differentiation in degree between the rate of Income Tax as between the distributed and the undistributed profits.
Such a Clause as this is not free from difficulties. Although I have obtained competent legal advice in the drafting of the Clause, I would not be so dogmatic as to say that it could not be improved. But the general purpose of it, I think, is quite clearly carried out. I think no one can argue that there is any serious technical difficulty in differentiating between the profits which are distributed and the profits which are not distributed. I would further point out in this connection, as I have done on previous occasions to this House, the great importance of encouraging our industrial concerns, and especially our limited liability companies, not to distribute too great a part of their profits to their shareholders, but to retain enough in their businesses in order to deal with future developments, with modern improvements, and the replacing of obsolete plant. Anyone engaged in modern industry is well aware of the fact that there never was a period when conditions changed more rapidly, when machinery became more quickly antiquated, when new inventions so crowded the world market, and those who wish to keep abreast of modern industrial development, who wish to keep abreast of the vast developments in other countries, have to be more prepared to scrap their plant more quickly than at any previous period. It is very hard on directors pursuing a consistent policy, conserving their profits for this purpose, that a very heavy burden of Income Tax should be levied, and that the money kept back for this vital purpose of business should be treated exactly on the same footing as money which is handed to the shareholders to do as they like with.
May I ask if the right hon. Gentleman would give me an explanation of a part of the Clause? The part of the Clause to which I refer says that if any profits are at any time distributed by way of shares or otherwise, such profits shall be chargeable to Income Tax for the year in which they are so distributed at the average rate in force for the period during which such profits have been undistributed, according to the rules applicable to each case under the Income Tax Acts. Does he mean that the profit is to be taken by the companies? The Clause as it stands is not quite clear, and perhaps he will explain it.
I shall come to that point later if my hon. Friend will allow me now to develop the main point of my argument. I was pointing out the urgent necessity of taking steps in the direction I have indicated, and I do not think that anyone who seriously regards the present industrial conditions will combat the views I have put forward. I cannot say, because I have not the material at my disposal, how far this would affect the yield of the tax, but I have no doubt that we shall hear something on that subject. Any such figure, however, can only be an estimate. I do not wish to repeat now what I have said so often in these Debates, but I have always held the view, and I still adhere to it, in spite of all the arguments we have heard, that the first thing we have to do in this country is to get industry and trade on a sound footing, and that other objects, necessary and admirable though they may be in themselves, ought to give place to that. This would certainly cost less than an all-round reduction of Income Tax. The Government cannot hope to maintain the present rate of Income Tax for any lengthy period. They have been very fortunate in being able to maintain it so long. A scheme of this kind, however, might enable them to have a larger general Income Tax and yet give a greater relief to industry where it is most required, and in a manner which is quite legitimate.
With regard to the point raised by the hon. Member for Farnham (Mr. A. M. Samuel), an objection which has always been raised to giving any Income Tax relief of this character has been that companies would merely accumulate reserves, and that, when the reserves had reached a certain point, they would issue those reserves as permanent shares, and so escape the contribution by way of Income Tax which they ought to pay—that, in fact, they would simply reserve profits, and those reserved profits would then be paid out in bonus shares. The object of the last part of this Clause is to avoid a transaction of that kind, unless the same Income Tax is paid which would have been paid had the profits been distributed year by year. The object is—I do not know whether the wording carries it out exactly; I thought it did—that Income Tax which has already been paid at the reduced rate should be credited, and I should have thought myself that that was implied, but, if the Clause meets with the approval of the Committee, that can easily be rectified by a few further words. That is obviously the intention. The last part of the Clause is really put in for the protection of the Treasury, which has legitimately objected in the past that a reduction of Income Tax ought not to be given on money which is retained in a business, when it is merely retained in order to be paid in another form by which it would escape taxation.
Supposing that, after this two-ninths has been put to reserve, with the intention, quite honourably, of distributing it in the form of shares and paying tax upon it when the time comes, trade should fall and the money be lost, would not that be merely gambling with the taxpayer's money, with the result that the Revenue would not get a single penny?
I do not think the hon. Member was following my argument. The object is not that these reserves should be tied up and not distributed, nor is it that they may be gambled with. The object is to enable the day-today and year-to-year replacements of machinery and alterations in factories and workshops to be dealt with. The hon. Member seems to imply that the object of putting this money to reserve would be simply to hold it back and finally issue it as bonus shares.
It would be subject to the risks of trade.
I do not understand what the hon. Member's objection is. It seems to be that these reserves may never be issued at all. I hope they will not be, and this Clause does not contemplate that they would be. The intention of the Clause is to relieve the money which is put back into a business, or kept in a business in order to develop it or keep it up to date, of a small share of the very heavy taxation which is paid by the Income Tax payer, and to differentiate between that money and money which is merely paid as return on capital, and in the case of which there is no guarantee that it will find its way back into industry at all. That is really the object with which this Clause had been drafted. I sincerely hope that the fact that I have stated it very shortly will not lead the Government or the Committee to fail to grasp the importance of the principle involved. It is a fundamental principle. The question is whether or not we are going to take steps to encourage, and not to discourage, the maintenance of industry, whether we are going to differentiate between money which we know is going to remain in industry and money about which we are uncertain, and whether, when we are making any alteration in our general Income Tax on a large scale, this would be a good form of classification to adopt.
I certainly do not intend to complain of the brevity of the right hon. Gentleman's observations on this interesting proposal. He has spoken with the clarity that we expect of him, but even his great ability has not, I think, succeeded in making clear to the Committee the exact way in which this proposal will operate. The right hon. Gentleman, in the first place, asked a question which, I am afraid, I cannot answer, as to what would be the effect upon the revenue if his proposal were adopted. It is one of the unfortunate results of the vagueness of the proposal that it is quite beyond the wit of man, as it is even beyond the wit of those advisers whom the right hon. Gentleman criticised in his last observations to the Committee, to say what his proposal will cost the revenue. I think it will be plain to the Committee how impossible it is to make any estimate when it is fully understood what the new Clause says.
The main objection, however, and the one which I put in the forefront of my observations, is that this proposal offends against a fundamental principle of the Income Tax, namely, that the Exchequer has nothing to do with the way in which the taxpayer spends the profits he has made when he has made them. An hon. Member opposite says that the revenue ought to have something to do with that. That is a question which I will not stop to discuss now; I only say that it is a fundamental principle of our Income Tax that the revenue pays no heed to the way in which people spend their money when they have made it. They may put it into a stocking, they may spend it at Ascot, they may invest it in other people's businesses—in the right hon. Gentleman's business, for instance—or they may invest it in their own business. In any case, the revenue says that, when the profits have been made, there shall be paid on them the Income Tax which is leviable upon profits which have in fact been earned.
The next objection is one of almost equal weight. It is that this proposal differentiates between different classes of taxpayers. The right hon. Gentleman's proposal, whether designedly or not I am unable to say, only deals with the case of a company, firm, or partnership. The professional man is left out; the employé, the clerk, the manager, is left out of the operation of this proposal. Is there any reason why an individual taxpayer who thinks it desirable to invest the savings which he does not require for the maintenance of his own home in, say, erecting a house, or in providing for old age, should have to pay Income Tax upon the reserves that he creates, while a company, a firm, or a partnership should be exempted from paying the appropriate Income Tax? If the right hon. Gentleman's proposal were adopted, to exempt a company, firm, or partnership, all professional men and employés would at once say to the Chancellor of the Exchequer, "I am investing my savings in my business, which is to provide for my old age, or to procure the comfort of my family," and an irresistible demand would be made upon the Exchequer for relief upon precisely the same lines as the right hon. Gentleman proposes in the case of a company, firm, or partnership.
These are objections on principle, but if they could be got over there would still be the objection that the proposal, if the right hon. Gentleman will forgive me for saying so, is absolutely impracticable—so impracticable as to make it almost fantastic. Let me try, with the disability under which I suffer of not being a business man, to point out how the proposal is impracticable. It will be observed that in the first part of the Clause the rate of abatement is laid down as two-ninths of the rate of Income Tax chargeable on such part of the profits as is put to reserve. I dare say the right hon. Gentleman had a very good reason for selecting the figure two-ninths, but I do not know that it is better than two-sevenths, or two-elevenths, or any other fraction. [HON. MEMBERS: "It is 1s. in the £."] If it is 1s. in the £, I do not know why that rate should be selected, but I will let that pass. The proposal is to exempt this portion of the reserve by giving an abatement of two-ninths of the rate of Income Tax which would otherwise be chargeable. That, presumably, means the rate, in the first instance, in the case of a partnership, chargeable upon the partner after the various reliefs and abatements have been calculated to which he is entitled in his individual capacity. I understand that that is why the draftsman has put in the words, "rates of Income Tax otherwise chargeable," and I think I may assume that the right hon. Gentleman intends that to be so.
Chargeable on the partnership.
Yes, but you do not charge Income Tax upon the income of a partnership; the partnership rates are charged upon the income, which the partners in the business are entitled to receive from the profits made out of the partnership, and those rates depend upon the various allowances, which we have been discussing this afternoon, to which the individual partner may be entitled. When we come to the second part of the Clause, which deals with the time of distribution of these reserves, the right hon. Gentleman proposes that the rate shall be the average rate in force for the period. He has explained to the hon. Member for Farnham what is certainly not the effect of the Clause as it is drafted, namely, that there is to be an allowance of the amount of tax, namely, seven-ninths, which has already been paid. I think the right hon. Gentleman recognises that some amendment will be required in order to make that plain, but let me assume that such amendment had been made. The distributed reserves are now to be charged at the average rate in force for the period. Does the right hon. Gentleman mean the average standard rate, or the average individual rate?
The average standard rate.
Then he is going to charge tax on the distributed profits at the average standard rate, although, before distribution, when they were put to reserve, they will have been charged at the actual individual rate. In fact, the right hon. Gentleman requires that the calculation shall be made at one time on one basis and at another time on another basis. Anyone can understand what such complications as that would result in.
It is not a difficult calculation.
Then the right hon. Gentleman is totally lacking in that logic which he always uses in the proposals he lays before the House. Let me put another difficulty. Supposing some company or partnership saves a sum, say, of £500 a year for six years and puts the whole £3,000 to some reserve. Later on one partner, or both, withdraw £2,000 of the £3,000 in order to build a house or to invest in some outside business. How is the right hon. Gentleman going to calculate the average rate in force for the period? To what year is he going to attribute the particular part of the reserves which is withdrawn? Will he attribute it to the earlier sums which were put into reserve? Some taxpayers might assent to that, but supposing the taxpayer says, "That particular sum that I have withdrawn is an earmarked investment reserve which I made in the latter years of the period over which the reserve has been acumulated." Will the right hon. Gentleman require rules to be drawn up to deal with these very varying circumstances under which the reserves may be distributed?
It will be apparent that the difficulty of computing the liability to tax of the reserves when they are distributed will be immense, and indeed impracticable. The right hon. Gentleman said he was not wedded to the exact words of the Clause, but that will not do, coming from someone with his experience, especially when he has told us he has employed the most competent draughtsman he was able to find, and if the right hon. Gentleman with all his financial experience and vast knowledge of business, and with the great resources which he can bring to bear in employing the best draughtsman, is unable to frame a Clause which is not more water-tight than the present one, it will be apparent that the proposal is impracticable altogether. It is true that he has a laudable desire, but good intentions will not carry us anywhere. His desire is to increase employment, and yet when the Government arranged their finance so as to increase employment, as in the case of the Sugar Duty, the right hon. Gentleman is forward in attacking the Government. It will not make the proposal a good one to suggest that it has a good intention, and because it offends against the fundamental principles of the Income Tax, because it distinguishes between the different taxpayers and favours one class of taxpayer against another, because it is impracticable in operation and because the Clause is not drawn in such a way as to make it practicable the Government are unable to accept the proposal.
I must say a few words in reply to the Solicitor-General. Firstly, he attacks me on the drafting of the Clause. He must know perfectly well that I have not at my command the skilled draughtsmen that every Government has. When I was a Member of the Government for some years, I found that even their skilled draughtsmen had difficulties which had often to be revised before they put a thing into the form which was absolutely what was intended or what was practicable. That is a very poor point of his. The hon. and learned Gentleman devoted practically the whole of his destructive speech to some quibbles about partnership. The bulk of the business of the country is not carried on by partnerships, but by huge limited liability companies. If that is the best the hon. and learned Gentleman can do, I do not think much of it. I do not believe in the invariable principles of Income Tax. That really is an argument which will not do for nowadays. It is too unmodern altogether. This is a proposal which would have a definite economic effect, and I put it forward for discussion. If I am unable to solve the difficulty, the difficulty is not insoluble. Speaking in the interest of the country, and not of any individual or party, I would seriously urge the Government to give the matter very serious consideration between now and Report, and if they cannot do it now, at any rate try to do it next year. Clever debating speeches of the type we have just heard are not going to help us out of our trouble. What we want is the application of goodwill, not in destructive, but in constructive criticism. Destructive criticism is very easy, and I find it abounds in Government Departments. Whenever you put forward any proposal, you find plenty of able men will tell you that it cannot possibly work. We want them to apply their ability to make it work. If the Government decide that a thing can work, it is extraordinary how the same advisers who point out the difficulties will find methods of getting over them.
Question, "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(Provisions as to Supertax.)
Sub-section (4) of Section fifteen of the Finance Act, 1920, is hereby repealed and, notwithstanding anything contained in Section sixteen of the said Act, it is provided that in estimating the total income of any individual for the purposes of Super-tax there shall be allowed in the case of earned income a deduction from the amount of that income as estimated in accordance with the provisions of the Income Tax Acts of a sum equal to one-tenth of the amount of that income.—[ Sir A. Mond. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I am afraid the suggestion I am going to make will not be more popular with the Government than the last one. The object of this new Clause is to rectify what I think is a great injustice, that whereas there is a small differentiation between earned and unearned income for th purpose of Income Tax, the differentiation entirely disappears when we reach Super-tax. There is no logical reason that I have ever been able to discover why this should be the case. Differentiation between earned and unearned income is based on the very sound principle that income derived from securities or from land or other forms of capital is very much more valuable than an income purely derived from the earnings of any individual in the course of the current year. That being recognised for Income Tax I fail entirely to see why it has always been refused as far as Super-tax is concerned. The Super-tax limit has been very much reduced since it was first introduced and with the present cost of living incomes have very much diminished in value. While salaries and emoluments have very much decreased the class of Super-tax payers have been very much increased. It seems to me if you are allowed to make a certain deduction for earned income for the purposes of Income Tax a similar deduction ought to be made in the case of Super-tax. At present that is not the case. The deduction allowed for one purpose is not allowed for the other and the purpose of this Clause is to do away with this differentiation, and that is why I have to repeal the Sub-section in the Act of 1920 which deals with the matter in order to put the Super-tax payer in exactly the same position as the Income Tax payer is in at present.
It is most extraordinary that when a Clause is moved by an ex-Minister and a serious argument is put before the Committee, no one on the Front Bench takes the trouble to say what the attitude of the Government is, if, indeed, it has any attitude.
I had no wish, of course, to be discourteous, but I saw that the name of the right hon. Gentleman the Member for Norwich (Mr. Hilton Young) was attached to the Clause, and I thought he would be supporting it and I should save the time of the Committee if I waited. The right hon. Gentleman (Sir A. Mond) knows quite well that, were I not in office, I should probably vote with him. Any Super-tax payer would like this from the personal point of view. But if you consider it, not from the purely selfish or personal point of view, but from the point of view of the incidence of the tax itself, I am convinced the Committee would agree it is a concession which neither I nor any other Minister really ought to accept. It is putting the Super-tax out of the picture, so to speak, as part and parcel of the Income Tax. The whole scheme of the Royal Commission of 1920 was that the Income Tax and the Super-tax should be one graduated system of Income Tax. Super-tax is really a further tax of Income Tax. It is a higher rate of Income Tax on a certain high rate of income. That being so, having once had a particular form of allowance in regard to Income Tax you cannot have it over again in regard to a higher rate of Income Tax. It would be just as sensible for the right hon. Gentleman to make the proposition that where a certain concession was made where the rate of Super-tax is 2s. 3d. in the £, it should be doubled when the rate was 3s. 6d. and trebled when it got to 4s. 6d. If that principle was adopted throughout, you would really make the thing a 10s. 6d. rate of Income Tax with certain adjustments as between the 4s. 6d. rate and the 10s. 6d. rate. That is the answer to the right hon. Gentleman. However much a Super-tax payer on this side of the House, whether myself or any other Member, might wish for personal and selfish reasons to see this concession made, it is a concesion which ought not to be granted, because it cuts right across the whole principle of the incidence of Income Tax and Super-tax in the scheme of 1920. I am quite convinced that it will not be right to grant it. In addition to that consideration, it would involve in the first complete year £3,500,000 less payment to the Exchequer, which would rise year by year in the next three years to £6,500,000. That would be a grant of £6,500,000 by way of rebate to the highest form of Super-tax payer and Income Tax payer, and I am convinced that, on consideration, the right hon. Gentleman will feel that it is not an Amendment which the Government can accept.
In regard to what the Financial Secretary has said as to the scheme of the Income Tax Commission, it is true that the scheme involved a scale of graduation, but I must point out to my right hon. Friend that the effect of the changes that have been made in the Income Tax since then has been to constantly steepen the gradient, and we have left the Super-tax payer where he is, while the Income Tax has been reduced. Therefore, when you have a scale of taxation and taxation from the top to the bottom is arranged by the Income Tax Commission, and accepted by this House, and that scale has been departed from by reducing at the bottom and leaving the top untouched, there is a position which requires consideration. I am not pressing my right hon. Friend to accept this Amendment now, but this is an opportunity for pointing out that it is a dangerous thing to be continually narrowing the basis of taxation and constantly putting a heavier burden upon fewer people. Of course I am not speaking from the individual point of view as to the hardship upon the Super-tax payers, but it is a matter which the Treasury and the Government ought to bear in mind, that it is very dangerous if the basis of taxation is to be narrowed and such a large proportion of revenue is to depend upon a few people whose position is very much threatened, and whose position is very unstable. If their capacity of tax paying is undermined and destroyed, the position of the country will be extraordinarily dangerous.
It is not quite correct to say that the position of the Super-tax payer has not been altered. We have gradually reduced the Income Tax from 6s. to 4s. 6d., and every Super-tax payer has had the advantage of a reduction of Is. 6d. on every £l of his income on which he pays Super-tax. Therefore it is quite clear that the Super-tax payer has participated in exactly the same way as everybody else in the reduction made. Here have I the whole afternoon been resisting, with the assent of the Committee, various concessions which have been suggested with respect to the less fortunate members of the community, and I think my right hon. Friend will agree that I should resist this Amendment.
Certainly, I do not ask my right hon. Friend to accept the Amendment. I am only pointing out what I think is right. It is true that the actual reduction which has been given in regard to Income Tax has accrued to the Super-tax payer. He has had the same reduction, but not proportionately. The effect of the reduction is exactly as I say, that the gradient is steepened in proportion to the higher amounts that are paid: The Financial Secretary told us this afternoon that a man with a wife and three children who had an income of £400 a year only paid £5 in Income Tax, whereas a Super-tax payer with a wife and three children would pay on £400, £200. Here we have one man with an income of £400 only paying £5, and the man with £400, which is part of his higher income, paying no less a sum than £200. That is an extraordinarily steep gradient, and it means that we are putting the taxation on a very narrow basis.
I want to join in the lamentations of Jeremiah. As a Super-taxpayer myself, I feel every sympathy with the gentkmen who have expressed themselves so dolorously in connection with the Super-tax. They ought to be very thankful that they have got off so well. They have all the benefits without any of the disadvantages. The right hon. Gentleman who moved the new Clause ought to be careful before he comes to the House of Commons and sings songs of Araby. Lately he has been interested in issuing bonus shares.
When?
Wait a moment. I happen to be a member of a trade union which has had something to do with approaching some of the people who are talking so much about what they have to pay. They are asking us to submit to a reduction of wages, and when we ask for the reasons, they cannot give us any answer. All they say is: "We are not asking for the reduction because we cannot afford to pay the present rate, but we are asking for the reduction because somebody else has been compelled to accept a reduction." Is the Income Tax going to be altered on that basis? Now that these gentlemen have got back to their original muttons, now that they are drawing dividends and taking part in the exploitation of labour, now that they are no longer Ministers of the Crown, they are asking to be excused of the difference between Super-tax and the ordinary Income Tax. The Super-taxpayer ought to pay a higher proportion of Income Tax than anybody else. [HON. MEMBER: "He does!"] The man who retires from business and draws a super income, what about him? He goes back to his muttons and now he requires a higher rebate. I do not know anything about manners, but only the lack of them.
Why should these people who do nothing year after year be allowed any rebates? Why should not they place a limit upon their incomes? Why should they be allowed to come along and ask, as though they were paupers at the gate, for rebates when they do nothing, and do it very well? They come to this House with tears in their voices asking that they should be relieved of Income Tax. I am prepared to give relief to every man who works for what he gets, but I am not prepared to give it to a man who does nothing except sit on the Treasury Bench answering questions to which he cannot give a proper reply. Now, when that man is out of work he wants relief. He ought to be outside an Employment Exchange.
On a point of Order. Is this speech in order? It seems to me that it has nothing whatever to do with the new Clause.
I am trying to give the hon. and learned Member the facts. I am sorry that I cannot give him the means to understand them.
Would you mind ruling on my point of Order, Captain Fitzroy?
The hon. Member was getting a little wide.
I happen to be a bit wide usually. I cannot understand why we have had these lamentations regarding Super-tax. A large number of hon. Members on these benches would like to share the responsibilities with the Super-tax payers. I would like to share them. Give me your income, and I will pay the tax. There will be no objection at all on my part. I always find that the people who are best able to bear the burden are the first to grumble. When we ask them to relieve the common people of their burdens, they always go into the Lobby against them. They do that on the Sugar Duty and on food taxes of every kind. They always go into the Lobby to maintain the present burdens upon the common people, but when it comes to their own case they get up in the House and talk most lugubriously about their position, and say that they cannot afford to pay. Some of them can afford to pay ten times more than they are paying to-day. They are not going to escape if I can help it. I only want to make them pay and pay through their noses. Some of them would have a lot to pay if they had to pay through their noses.
Question, "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(Provision to allow deductions in respect of inherently wasting assets.)
For the purpose of enabling deductions from revenue receipts of expired capital outlay on inherently wasting assets to be allowed by the additional Commissioner's claims in respect of those deductions shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits and gains of any trade, manufacture, adventure, or concern, and where such a deduction from the revenue receipts is made, and has been made from the commencement of the actual employment of the inherently wasting assets in seeking profits, or during a period of not less than three years to the end of the usual financial year of the particular trade, manufacture, adventure, or concern, last prior to the year of assessment, and provided such deduction is so made as to prevent the same being available as profits, the additional Commissioners in assessing those profits and gains shall make such allowances in respect of those claims as they think just and reasonable.
For the purpose of this Section the term "inherently wasting assets" means assets which necessarily waste in the process of seeking profits. Provided always that such wasting assets are not the value of transferred rights to future profits or increase which would have been chargeable with Income Tax if no transfer of such rights had been made.—[ Mr. Peto.
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I submit this Clause with some confidence, because in the earlier Debates this afternoon the Financial Secretary pointed out, as former Chancellors of the Exchequer have pointed out, that of all the Reports of Royal Commissions there was none so perfect a monument of industry and so complete as the Report of the Royal Commission on Income Tax in 1920. The new Clause, which I now submit, is, broadly, in agreement with a section of that Report, which has never been dealt with. The right hon. Member for Hillhead (Sir R. Horne), when he was Chancellor of the Exchequer, said that this Report was a mosaic. Well, here is a large piece of the mosaic which is missing, and it happens to be the part which deals with the industry of the country. The subject is defined by the opening words of Part III of the Report: same terms as the Amendment I am moving to-day. The question, broadly, goes back to the very inception of the Income Tax in 1842, because then there was an allowance made as a deduction from profits for the cost of replacing industrial plant and machinery. In 1878 that was extended to annual wear and tear, and in 1907 it was further extended by allowing any balance of this wear and tear which was not met in any one year out of the profits of the business to be carried forward to the next year. Then allowance was made for the replacing of obsolescent machinery which was no longer up to date to be carried over in that manner.
8.0 P.M.
In that year, 1907, ships were dealt with. They were allowed a 4 per cent. allowance on the cost, thus giving them a hypothetical life of 25 years. In recent years, and certainly since 1910, whenever this question has been raised in the House, or whenever practically any question of dealing with the more equitable collection in Income Tax has been raised, we have always been told to wait for the Report of the Royal Commission. At last, that answer can be no longer given. The Royal Commission sat in 1919, and reported in 1920. It is disappointing to find that whereas the Report of the Royal Commission meets with the unstinted praise of the Secretary to the Treasury, this particular and most important section of that Report has never been touched, and does not find any place in the Finance Bill of this year. When the j tax was first imposed it was a tax of 7d. imposed only for three years. It is noteworthy that in 1858, when the allowance for wear and tear was first made, the tax was only 5d. in the, £,and Mr. Gladstone, at that time, expected that it would very soon disappear altogether. Coming to 1912, when the hon. Member for Warwick and Leamington (Sir E. Pollock) moved this Amendment, we were bound to point out the enormous increase at that time in Income Tax. It was Is. 2d. in the £ at 6 per cent., and it imposed a total burden upon industries and incomes in the country of £45,000,000. Last year the Treasury collected £261,000,000, and a single shilling Income Tax now represents £52,000,000.
Therefore, every argument that could be used at that time as to the necessity of collecting the tax on the true profits of business, and not on the gross profits, is very much accentuated. We pointed out at that time that this method of collecting tax without any allowance for wasting assets at all was driving companies to register abroad; was encouraging unsound finance and bad accountancy; that it discouraged new industries and enterprises and the provision necessary to maintain the efficiency of plant and the use of new inventions. If that is not 10 times truer to-day, it is, at least, literally true to say that it is between five and six times more potent, with the Income Tax at its present high rate, and with the burden on industry so gigantically increased. In 1912, the right hon. Member for Carnarvon Boroughs (Mr. Lloyd George), who was then Chancellor of the Exchequer, said: moving now. He said, speaking on 2nd August:
It is worthy of note that both the United States of America and New Zealand admit minerals in their own territories as wasting assets. I need not go into the smaller points of difference between this Clause and what was recommended by the Royal Commission. In the main they agree. When we do see the Report of the Royal Commission given effect to, we can discuss those differences. What I ask now is that the Government should give effect to this most important part, covering many pages of the Report, which, up to the present, has never been touched. If, alternatively, they cannot do that at once, I ask them to see that, at any rate before next year's Finance Bill, the necessary Clauses to give effect to the Report of the Royal Commission are included. I think it will require several Clauses. If the Government cannot accept my Clause now—it has the merit almost of antiquity, and I believe it is absolutely watertight, and a true Income Tax Clause—I hope they will give us a general promise that not another year shall go by without the Report of the Royal Commission being given effect to in this respect.
My last point is that the amount which this would cost to the revenue is no argument at all. Income Tax should be a charge upon real income, which is denned in paragraph 180 of the Report as "the surplus of receipts over current expenditure necessary to earn those receipts." The rate of the tax should be calculated to collect the revenue necessary upon a fair and equit-able basis. Therefore, in dealing with a question of this kind, it is not a question of asking for remission of the tax, or anything of that sort. It is no remission, and I hope we shall not hear to-day that it will be costly to the revenue. It would, at any rate, put the collection of the tax upon a fairer basis, and would not make this great tax, which has got to be collected on the industry of the country, an unnecessary discouragement to new enterprise.
I have no doubt whatever that my right hon. Friend will not accept this new Clause, and that one of the reasons he will give will be that it goes somewhat further than the recommendations of the Royal Commission on Income Tax, in that it proposes to include as wasting assets minerals for the purpose of Income Tax. I have a very great respect for the Royal Commission, but I cannot regard it as absolutely infallible. It is somewhat anomalous that the provision in respect of making allowance for wasting assets should have excluded cases of mineral reserves. Surely, there is an excellent argument to be made for the inclusion of the mineral reserves, either of coal or metaliferous mines, under the definition of wasting assets. It is allowed in other directions, and the Royal Commission proposes in regard to dock and harbour works, and many permanent works of that character. It is only fair and reasonable that persons engaged in exhausting assets which must come to an end after a certain time, for which they pay very substantial sums of money, should be allowed to make deductions for the purposes of this Clause, and that they should not be taxed in respect of what really are not genuinely permanent possessions. I am afraid that there is very little chance of my right hon. Friend accepting this Clause as it stands, but I hope that the Government will give further consideration to a very important matter which would go a long way to developing the mineral resources, at any rate, of the West of England, and remove what is, in my opinion, a serious injustice to persons engaged in that industry.
The question under discussion has engaged the attention of many Chancellors of the Exchequer, and, as my hon. Friend who moved the Amendment said, the proposal has a long history. I think that he will agree with me that it has baffled everybody who has studied the matter that is if the intention was to design a scheme which would fit in with the Income Tax laws as they exist at the present time. When this Clause—which is in practically the same form as the Clause which was proposed by my right hon. and learned Friend the Member for Warwick and Leamington (Sir E. Pollock)—was introduced, the right hon. Member for Carnarvon Boroughs (Mr. Lloyd George), who was then Chancellor of the Exchequer, said that it would be impossible to adopt a Clause, however well-designed, without making an alteration in the existing Income Tax laws. My hon. Friend who seconded this proposal realised that it would be impossible at this stage and in this way to frame a proposal to deal with this difficult question. I think that there will be general agreement that wasting assets do under the present law cause great hardship. Undoubtedly they hinder developments of industry which are all in the interests of the country. The law as it stands to-day prevents people from investing money in enterprises of that kind, because an excessive part of the produce of the enterprise has to be paid as Income Tax. It is not income which is being taxed, but something of a different character.
I need not detain the Committee by making general observations which lead to no useful conclusion, and I would like to say at once it is impossible to accept this Clause as it stands. The Royal Commission made very elaborate proposals as my hon. Friend has stated, in various forms in 1920. Whether or not the Government, dealing with all those proposals, are prepared to enact them as they stand is a subject which I do not propose to discuss to-day. There are obvious objections to some of the pro- posals from certain points of view. Neither of my hon. Friends would be altogether pleased if those proposals were adopted.
They would be a great deal better than nothing.
I quite admit that, but the best I can say to-day, in response to the suggestion which my hon. Friend has made, is that the Government will undertake that this matter shall receive consideration, in the light of the recommendations of the Royal Commission, in order that some real decision may be arrived at with a view to seeing whether the proposals of the Royal Commission are the best that can be designed in the opinion of the Government, or whether they can be inproved. With that intimation of the Government's intention to deal with this question and if possible to introduce the necessary Amendments in connection with next year's Budget, I hope that my hon. Friend will be prepared to withdraw his Amendment.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Allowance in respect of imported spirits.)
An allowance of fivepence per gallon shall be payable in respect of imported spirits for the making of power methylated spirits or industrial methylated spirits used in any art under Section eight of the Act of 1902.—[ Mr. Hardie. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The object of this Amendment is not so much to try to get spirits into this country as to draw attention to the fact that in this country to-day our only form of native fuel is coal, and we are to-day entirely dependent for liquid fuel supply on sources outside our own community. We now make an allowance upon an article produced in this country which has become a form of protection, and the moment you allow protection to come into an industry such as this you at once see the paralysing hand. Instead of this nation being able to move with the times it is to-day the most backward nation in the world in the application of the power and plant concerned in the production of that which gives this country not only independence of an outside fuel supply, but gives it a great lever whereby we could fight what is known to-day as the petrol trust.
In answer to a question to-day, the President of the Board of Trade stated that in 1914 the quantity of motor spirit, including benzol, imported into this country amounted to 141,000,000 gallons: in 1922 it had gone up to 306,000,000 gallons. The quantity of home produced benzol used in motor spirit in the British Isles in 1914 was 17,000,000 gallons and in 1922 it was down to 11,000,000 gallons, showing the direct action of the petrol trust, and the moneyed interest in the trust on the Government Benches is such that that vested interest will be placed in front of the scientific application of knowledge to industry to-day, to make this nation as a nation stand, as it ought to stand, for the independence of outside fuel supply, by allowing the knowledge that we have to-day free access in its application outside of this wall that is built by vested interests in other industries outside this nation.
The Clause refers specially to Section S of the Finance Act, 1902. We used to pay 3d. a gallon on proof spirit, but in 1921 the Government increased the amount to 5d. Had we been at the stage that we did not understand where we were or what we were doing, things might have been all right. If you take last year's return of the Commissioners of Customs and Excise, Table 56, you will see that it shows clearly the use of industrial spirits and the great demand for them. There are 44 headings in the table and 100 sub-divisions. That is proof of the universal use of this alcohol. What we are paying 5d. for to-day is half water and half alcohol. Take it on the basis of that relation, and allow 5 per cent., which can be used for industrial alcohol, we can allow 9jd. a gallon rebate. This rebate means that a firm by using up-to-date plant can go on manufacturing, and although it never sells a single halfpenny worth of what it makes the rebate is sufficient to give it a profit. In 1921 the rebate amounted to £57,828; in 1922 it had mounted to £71,900; and in 1923 to £102,000. Take the same ratio in the years to come, and in 10 years' time you will be paying out £10,000,000. A sane Government, allowing the use of up-to-date materials, could to-day be fighting the trust, and instead of paying 1s. 9d. to 3s. per gallon you could get this at 9d. per gallon. You could help two branches of industry. Beet, potatoes and other materials are required to get this spirit. The Government, when they sought to get into power, talked about the reorganisation of industry, but never once thought of helping a new industry, as I am doing now. If you take the point of view that, in future, there must be wars, you must have power for your aeroplanes and ships, and you must be independent if you are to be the Power that you would like to be. What is the position to-day? We have breweries which are supposed to produce industrial alcohol. You have still in use the old pot-still of a hundred years ago. It is kept in use because it distils a whiskey with a certain flavour. You have other stills in use, all obsolete things as far as science is concerned. And the great British nation prevents the manufacture of what might be the greatest source of power in this country, namely, liquid fuel called "industrial alcohol." Why should we hesitate for a moment to give a rebate to spirits coming in. Unless you do it you continue to play into the hands of the petrol trust. Instead of a decrease, you will have an increase in the price of your petrol. The Act of 1880 regulates the character of the machine, so far as whiskey is concerned. If we applied science to modern requirements, if we had courage and insight, we would scrap such Acts. We would set in motion a new and huge industry, carrying with it developments on the side of agriculture. Could there be any more staggering realisation to a man in this country than that, with all the possibilities that we could command, we are importing 300,000,000 gallons, and are still tied down to the old whiskey still for the production of such an essential article in England.
Would the hon. Member include wood alcohol?
I will deal with wood alcohol later. We were the first country in the world to produce a denaturent for our alcohol, yet we are to-day the most backward country in the world so far as denaturing articles is concerned. America and France and Germany allow from 30 to 80 different denaturents, showing that they understand. To-day America and France are leaving us thousands of miles behind scientifically, so far as this branch of industry is concerned. Coming to the question of wood alcohol, here we are the great hard-headed, scientific, British nation always jutting out our chests and thinking how great we are, and we only know of one reliable denaturent, and that is in the form of wood alcohol. This wood alcohol costs 6s. per gallon, and when you have put 40 per cent. of into alcohol you can still drink it. [HON. MEMBERS: "Hear, hear!"] That shows exactly that hon. Members have not seriously followed this question, because this is about industrial alcohol and not about drinking.
You do not drink wood alcohol.
You do not know what you are drinking nowadays.
The hon. Member for Ilford (Mr. Wise) was not in the House when the Home Secretary was being put through his paces on that subject, and was talking about not being able to deal with the question. In America they use a great number of denaturents, and we only allow three special forms in this country. That is all we can get, and by this we are limiting the progress which might be made on this side, because alcohol is the most universally used solvent to-day, and by our Rip-Van-Winkle methods, the D.C.L. may, when they have an hour or two, run through some water and alcohol for this purpose, or some small whisky-maker in Ireland may have an hour or two when he is not making the stuff he bottles, and then he puts it through. [HON. MEMBERS: "Poteen."] These people get their allowance of 5d. per gallon—2½d. for the half-gallon of water and 2½d. for the quantity of alcohol which is present in the water. You are supposed to be experimenting with a helicopter in an aerodrome near London, and yet you are leaving out the most essential thing by not securing that if there is a war you shall have the power to drive the helicopter, and that you shall be able to make the source of that power within the city of London. You do not even go that length You interest in the petrol trust is so great that you even crush your own industries because your money happens to be sunk somewhere else.
I really think that observation is outside the scope of the hon. Member's argument.
I will take it back. America, France and Germany are making great strides. Their internal combustion engines are being run with alcohol produced in their own country. They are not dependent on outside supplies. They are not dependent on someone coming along to give them formulae or upon some Home Secretary who says that they do not know how to make alcohol tasteless to the man who wants to sup it. There is not the slightest reason why any form of alcohol to-day cannot be rendered absolutely unpalatable without destroying the power of that alcohol, and, knowing this, why should we as a nation be deterred from taking the proper steps simply because the D.C.L. or someone else has an old still. Why do we not go boldly into this matter and organise the proper production of industrial alcohol. This matter touches the basis upon which our charges of transport rest in this country, and nearly everything depends upon the price of transport. It is argued in this House, time and again, that the cost of food depends on the cost of transport; that the cost of railway travel is a question of transport, and many other matters depend on the same consideration, yet we can see no way of decreasing the price of the power which is required for transport. I put this proposal to the Committee on these grounds. Quite clearly, this is the only hope, since, apparently, nothing is going to be done voluntarily from the inside, and we have to take some other method of forcing the Government to act. The one way of forcing the Government is by asking that some rebate or allowance should be given to all spirits coming into this country. The only thing that will induce me not to go into the Division Lobby is the promise of the Government that they are going to take some steps to organise industry in this country for the production of industrial alcohol.
The interesting speech of the hon. Member was, I am afraid, a little beyond me. In the words of the hon. Member for Silver-town (Mr. J. Jones) with reference to another Amendment the hon. Member has been presenting me with the facts, but he cannot present me with the intelligence to understand them. That being the unfortunate position in which I find myself, the only course open to me is to tell the Committee what the allowance of 5d. per gallon in respect of British spirits is, and what is its object. Before 1921, imported spirits were subject to a Sur-tax which, with an allowance of 3d. given to British spirits, was designed to put British spirits in the same position as imported spirits. British spirits are subject to certain restrictions connected with the requirements of the Revenue, which increase the cost of production. In order to prevent British spirits from being unfairly handicapped in British markets by these restrictions, an allowance was given to British spirits at the same time as the Sur-tax was put upon the imported spirits. In 1921, the Sur-tax was repealed, but in order to keep British spirits still in the same relation to imported spirits, as they were in before the Sur-tax was repealed, the allowance was increased from 3d. to 5d. It is not a protective duty at all, but is designed to compensate, as it were, British spirits——
For having obsolete plant.
The hon. Member refers to obsolete plant. That is the part of his observations which I am not able to follow. The object was to put British spirits, having regard to Eevenue restrictions, in the same position as imported spirits, and in a position to compete with imported spirits. The hon. Member proposes to grant that same allowance to the imported spirits. Obviously that would have the effect of leaving the imported spirits 5d. better off than the British spirits, and the result of the hon. Member's proposal would be to kill the industry so far as British spirits are concerned. I gather that the hon. Member's proposal really is that as, by enforcing obsolete methods, the British industry is being killed, you might as well make a good job of it and kill it altogether. That is not a proposal, I think, which will commend itself to the Committee. I do not for a moment accept the hon. Member's statement, so far as my information goes, that the revenue authorities are enforcing any obsolete methods in this matter. In connection with the collection of the duties, it is necessary to enforce certain restrictions, which add to the cost of manufacture, and to compensate British spirits for that added cost we give a certain allowance. It would defeat the whole purpose of that legislation if we were to adopt the hon. Member's proposal.
If we are going to have a liquid fuel supply in this country, we can make it as cheaply as any country in the world, and why should we permit obsolete plants and subsidise things that are thousands of years old, letting them stand between us and what we should be doing in this country?
I do not think the learned Solicitor-General has met this Clause quite as it deserves. As a matter of fact, it is of enormous importance to the whole of the industries in this country. The hon. and learned Gentleman is simply looking at it from the point of view of the
few manufacturers there are at present in the country, whereas I think he ought to look at it from the point of view of the users of alcohol. It is perfectly well known that on the Continent of Europe and in America alcohol is becoming very largely the tractor spirit, and if the development of that kind of fuel in this country is going to be hampered in the interests of a few small, protected industries here, we shall suffer in the long run, and the whole trade of the country will be inconvenienced. I think the Government might have given this Clause more careful consideration than they have done. It opens up the whole of the Free Trade and Protection controversy, but in this case you are protecting an industry which does not deserve protection against the interests of the whole of the community, which depends on cheap transport.
Question put, "That the Clause be road a Second time."
The Committee divided: Ayes, 144; Noes, 275.
Division No. 230.] AYES. [8.48 p.m. Adams, D. Hardie, George D. Parkinson, John Allen (Wigan) Adamson, Rt. Hon. William Hastings, Patrick Phillipps, Vivian Adamson, W. M. (Staff., Cannock) Hay, Captain J. P. (Cathcart) Ponsonby, Arthur Alexander, A. V. (Sheffield, Hillsbro') Hayday, Arthur Potts, John S. Ammon, Charles George Hayes, John Henry (Edge Hill) Pringle, W. M. R. Attlee, C. R. Herriotts, J. Richards, R. Barker, G. (Monmouth, Abertillery) Hill, A. Richardson, R. (Houghton-le-Spring) Benn, Captain Wedgwood (Leith) Hillary, A. E. Riley, Ben Bonwick, A. Hirst, G. H. Ritson, J. Briant, Frank Hodge, Rt. Hon. John Roberts, C. H. (Derby) Broad, F. A. Irving, Dan Roberts, Frederick O. (W. Bromwich) Bromfield, William Jenkins, W. (Glamorgan, Neath) Robinson, W. C. (York, Elland) Brown, James (Ayr and Bute) John, William (Rhondda, West) Rose, Frank H. Buchanan, G. Johnston, Thomas (Stirling) Royce, William Stapleton Burgess, S. Jones, J. J. (West Ham, Silvertown) Saklatvala, S. Buxton, Charles (Accrington) Jones, Morgan (Caerphilly) Salter, Dr. A. Buxton, Noel (Norfolk, North) Jones, R. T. (Carnarvon) Scrymgeour, E. Cape, Thomas Jones, T. I. Mardy (Pontypridd) Sexton, James Charleton, H. C. Jowett, F. W. (Bradford, East) Shaw, Thomas (Preston) Clarke, Sir E. C. Jowitt, W. A. (The Hartlepools) Shinwell, Emanuel Collison, Levi Kenworthy, Lieut.-Commander J. M. Short, Alfred (Wednesbury) Cowan, D. M. (Scottish Universities) Kenyon, Barnet Simpson, J. Hope Darbishire, C. W. Kirkwood, D. Sitch, Charles H. Davies, J. C. (Denbigh, Denbigh) Lawson, John James Smith, T. (Pontefract) Davies, Rhys John (Westhoughton) Leach, W. Snell, Harry Davison, J. E. (Smethwick) Lee, F. Snowden, Philip Dudgeon, Major C. R. Lees-Smith, H. B. (Keighley) Spencer, George A. (Broxtowe) Duffy, T. Gavan Lowth, T. Stephenson, Lieut.-Colonel H. K. Duncan, C. Lunn, William Stephen, Campbell Ede, James Chuter MacDonald, J. R. (Aberavon) Stewart, J. (St. Rollox) Edwards, C. (Monmouth, Bedwellty) M'Entee, V. L. Sullivan, J. Emlyn-Jones, J. E. (Dorset, N.) McLaren, Andrew Thomas, Rt. Hon. James H. (Derby) Entwistle, Major C. F. Maclean, Nell (Glasgow, Govan) Thorne, W. (West Ham, Plaistow) Falconer, J. March, S. Tout, W. J. Gosling, Harry Marshall, Sir Arthur H. Trevelyan, C. P. Graham, D. M. (Lanark, Hamilton) Maxton, James Turner, Ben Graham, W. (Edinburgh, Central) Middleton, G. Twist, H. Gray, Frank (Oxford) Morel, E. D. Walsh, Stephen (Lancaster, Ince) Greenall, T. Morrison, R. C. (Tottenham, N.) Watson, W. M. (Dunfermline) Greenwood, A. (Nelson and Colne) Muir, John W. Watts-Morgan, Lt.-Col. D. (Rhondda) Grenfell, D. R. (Glamorgan) Murnin, H. Webb, Sidney Groves, T. Murray, R. (Renfrew, Western) Wedgwood, Colonel Josiah C. Grundy, T. W. O'Grady, Captain James Weir, L. M. Hall, G. H. (Merthyr Tydvil) Oliver, George Harold Welsh, J. C. Harbord, Arthur Paling, W. Westwood, J. Wheatley, J. Williams, T. (York, Don Valley) Young, Robert (Lancaster, Newton) White, Charles F. (Derby, Western) Wintringham, Margaret White, H. G. (Birkenhead, E.) Wood, Major M. M. (Aberdeen, C.) TELLERS FOR THE AYES .—Mr. Frederick Hall and Mr. T. Griffiths..—Mr. Frederick Hall and Mr. T. Griffiths. Whiteley, W. Wright, W.
NOES. Agg-Gardner, Sir James Tynte Ednam, Viscount Lane-Fox, Lieut.-Colonel G. R. Ainsworth, Captain Charles Elliot, Capt. Walter E. (Lanark) Leigh, Sir John (Clapham) Alexander, E. E. (Leyton, East) Erskine, James Malcolm Monteith Lloyd-Greame, Rt. Hon. Sir Philip Alexander, Col. M. (Southwark) Erskine, Lord (Weston-super-Mare) Lorden, John William Allen, Lieut.-Col. Sir William James Erskine-Bolst, Captain C. Lort-Williams, J. Ashley, Lt.-Col. Wilfrid W. Falcon, Captain Michael Lougher, L. Astbury, Lieut.-Com. Frederick W. Falle, Major Sir Bertram Godfray Loyd, Arthur Thomas (Abingdon) Astor, J. J. (Kent, Dover) Fawkes, Major F. H. Lumley, L. R. Baird, Rt. Hon. Sir John Lawrence Flanagan, W. H. Lynn, R. J. Baldwin, Rt. Hon. Stanley Ford, Patrick Johnston Macdonald, Sir Murdoch (Inverness) Balfour, George (Hampstead) Forestier-Walker, L. Macnaghten, Hon. Sir Malcolm Banks, Mitchell Foxcroft, Captain Charles Talbot McNeill, Ronald (Kent, Canterbury) Barlow, Rt. Hon. Sir Montague Fraser, Major Sir Keith Macpherson, Rt. Hon. James I. Barnett, Major Richard W. Frece, Sir Walter de Margesson, H. D. R. Barnston, Major Harry Fremantle, Lieut.-Colonel Francis E. Marks, Sir George Croydon Becker, Harry Furness, G. J. Martin, A. E. (Essex, Romford) Bell, Lieut.-Col. W. C. H. (Devizes) Galbraith, J. F. W. Milne, J. S. Wardlaw Bellairs, Commander Carlyon W. Garland, C. S. Mitchell, W. F. (Saffron Walden) Benn, Sir A. S. (Plymouth, Drake) Gates, Percy Moles, Thomas Bennett, Sir T. J. (Sevenoaks) Gaunt, Rear-Admiral Sir Guy R. Molson, Major John Elsdale Berry, Sir George Gilbert, James Daniel Moore, Major-General Sir Newton J. Betterton, Henry B. Gilmour, Lt.-Col. Rt. Hon. Sir John Moreing, Captain Algernon H. Birchall, Major J. Dearman Gould, James C. Morrison, Hugh (Wilts, Salisbury) Bird, Sir William B. M. (Chichester) Greene, Lt.-Col. Sir W. (Hack'y, N.) Morrison-Bell, Major A. C. (Honiton) Blades, Sir George Rowland Greenwood, William (Stockport) Murchison, C. K. Blundell, F. N. Grenfell, Edward C. (City of London) Nall, Major Joseph Bowyer, Captain G. E. W. Gretton, Colonel John Nesbitt, Robert C. Brassey, Sir Leonard Guinness, Lieut.-Col. Hon. W. E. Newman, Sir R. H. S. D. L. (Exeter) Bridgeman, Rt. Hon. William Clive Gwynne, Rupert S. Newson, Sir Percy Wilson Briggs, Harold Hacking, Captain Douglas H. Nicholson, Brig.-Gen. J. (Westminster) Brown, Brig.-Gen. Clifton (Newbury) Hall, Lieut.-Col. Sir F. (Dulwich) Nicholson, William G. (Petersfield) Brown, J. W. (Middlesbrough, E.) Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Norton-Griffiths, Lieut.-Col. Sir John Bruton, Sir James Halstead, Major D. Oman, Sir Charles William C. Buckingham, Sir H. Hamilton, Sir George C. (Altrincham) O'Neill, Rt. Hon. Hugh Buckley, Lieut.-Colonel A. Hannon, Patrick Joseph Henry Paget, T. G. Bull, Rt. Hon. Sir William James Harmsworth, Hon. E. C. (Kent) Parker, Owen (Kettering) Burn, Colonel Sir Charles Rosdew Harrison, F. C. Pease, William Edwin Burney, Com. (Middx., Uxbridge) Henn, Sir Sydney H. Penny, Frederick George Butcher, Sir John George Hennessy, Major J. R. G. Percy, Lord Eustace (Hastings) Butler, H. M. (Leeds, North) Herbert, Dennis (Hertford, Watford) Perkins, Colonel E. K. Butt, Sir Alfred Herbert, S. (Scarborough) Perring, William George Button, H. S. Hewett, Sir J. P. Peto, Basil E. Cadogan, Major Edward Hilder, Lieut.-Colonel Frank Philipson, Mabel Campion, Lieut.-Colonel W. R. Hiley, Sir Ernest Pollock, Rt. Hon. Sir Ernest Murray Cassels, J. D. Hinds, John Pownall, Lieut.-Colonel Assheton Cautley, Henry Strother Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Preston, Sir W. R. Cayzer, Sir C. (Chester, City) Hogg, Rt. Hon. Sir D. (St. Marylebone) Price, E. G. Chamberlain, Rt. Hon. N. (Ladywood) Hohler, Gerald Fitzroy Privett, F. J. Chapman, Sir S. Holbrook, Sir Arthur Richard Rae, Sir Henry N. Churchman, Sir Arthur Hood, Sir Joseph Raeburn, Sir William H. Clarry, Reginald George Hopkins, John W. W. Raine, W. Cobb, Sir Cyril Hopkinson, A. (Lancaster, Mossley) Rankin, Captain James Stuart Cockerill, Brigadier-General G. K. Horne, Sir R. S. (Glasgow, Hillhead) Rawlinson, Rt. Hon. John Fredk. Peel Colfox, Major Wm. Phillips Houfton, John Plowright Rawson, Lieut.-Com. A. C. Collie, Sir John Howard, Capt. D. (Cumberland, N.) Rees, Sir Beddoe Colvin, Brig.-General Richard Beale Howard-Bury, Lieut.-Col. C. K. Reid, D. D. (County Down) Cope, Major William Hudson, Capt. A. Remnant, Sir James Cory, Sir J. H. (Cardiff, South) Hughes, Collingwood Rentoul, G. S. Cotts, Sir William Dingwall Mitchell Hume, G. H. Reynolds, W. G. W. Courthope, Lieut.-Col. George L. Hume-Williams, Sir W. Ellis Rhodes, Lieut.-Col. J. P. Craig, Captain C. C. (Antrim, South) Hunter-Weston, Lt.-Gen. Sir Aylmer Richardson, Sir Alex. (Gravesend) Craik, Rt. Hon. Sir Henry Hurd, Percy A. Richardson, Lt.-Col. Sir P. (Chertsey) Crook, C. W. (East Ham, North) Hutchison, G. A. C. (Midlothian, N.) Roberts, Samuel (Hereford, Hereford) Crooke, J. Smedley (Deritend) Inskip, Sir Thomas Walker H. Roberts, Rt. Hon. Sir S. (Ecclesall) Curzon, Captain Viscount James, Lieut.-Colonel Hon. Cuthbert Robertson-Despencer, Major (Islgtn, W.) Dalziel, Sir D (Lambeth, Brixton) Jarrett, G. W. S. Robinson, Sir T. (Lancs., Stretford) Davidson, J. C. C. (Hemel Hempstead) Jenkins, W. A. (Brecon and Radnor) Rogerson, Capt. J. E. Davidson, Major-General Sir J. H. Jephcott, A. R. Rothschild, Lionel de Davies, Alfred Thomas (Lincoln) Jodrell, Sir Neville Paul Roundell, Colonel R. F. Davies, David (Montgomery) Jones, G. W. H. (Stoke Newington) Ruggles-Brise, Major E. Davies, Thomas (Cirencester) Jones, Henry Haydn (Merioneth) Russell, Alexander West (Tynemouth) Davison, Sir W. H. (Kensington, S.) Joynson-Hicks, Sir William Russell-Wells, Sir Sydney Dixon, C. H. (Rutland) Kennedy, Captain M. S. Nigel Samuel, A. M. (Surrey, Farnham) Doyle, N. Grattan King, Captain Henry Douglas Samuel, Samuel (W'dsworth, Putney) Du Pre, Colonel William Baring Kinloch-Cooke, Sir Clement Sanders, Rt. Hon. Sir Robert A. Edmondson, Major A. J. Lamb, J. Q. Sanderson, Sir Frank B. Sandon, Lord Sugden, Sir Wilfrid H. White, Lt.-Col. G. D. (Southport) Sassoon, Sir Philip Albert Gustave D. Sutherland, Rt. Hon. Sir William Whitla, Sir William Shakespeare, G. H. Sykes, Major-Gen. Sir Frederick H. Windsor-Clive, Lieut.-Colonel George Shepperson, E. W. Terrell, Captain R. (Oxford, Henley) Winterton, Earl Simpson-Hinchcliffe, W. A. Thompson, Luke (Sunderland) Wise, Frederick Skelton, A. N. Thomson, F C. (Aberdeen, South) Wolmer, Viscount Smith, Sir Allan M. (Croydon, South) Titchfield, Marquess of Wood, Rt. Hon. Edward F. L. (Ripon) Smith, Sir Harold (Wavertree) Tryon, Rt. Hon. George Clement Wood, Sir H. K. (Woolwich, West) Somerville, A. A. (Windsor) Turton, Edmund Russborough Wood, Major Sir S. Hill- (High Peak) Somerville, Daniel (Barrow-In-Furn'ss) Ward, Col. L. (Kingston-upon-Hull) Woodcock, Colonel H. C. Spender-Clay, Lieut.-Colonel H. H. Waring, Major Walter Worthington-Evans, Rt. Hon. Sir L. Stanley, Lord Warner, Sir T. Courtenay T. Yate, Colonel Sir Charles Edward Steel, Major S. Strang Watson, Capt. J. (Stockton-on-Tees) Yerburgh, R. D. T. Stewart, Gershom (Wirral) Watts, Dr. T. (Man., Withington) Stockton, Sir Edwin Forsyth Wells, S. R. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Sturrock, J. Leng Weston, Colonel John Wakefield Sueter, Rear-Admiral Murray Fraser Wheler, Col. Granville C. H.
NEW CLAUSE.—(Exemption from Entertainments Duty.)
The Entertainments Duty imposed by the Finance (New Duties) Act, 1916, as amended by any subsequent enactment, shall not be levied on any entertainment promoted solely for the benefit of and controlled and administered by any charity registered under the War Charities Act, 1916.—[ Major Burnie. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The proposal relates to a very small matter in comparison with the Finance Act. Therefore I shall be as brief as possible. This Clause is designed that the profits on any entertainment expressly got up and controlled for the supporting of any charity shall go to the charity without being almost stamped out by the Chancellor of the Exchequer. I am glad to say that the Financial Secretary agrees with me up to a certain point. Last night an Amendment was moved with a somewhat similar purpose, and the right hon. Gentleman pointed out that in last year's Budget a concession was made that if the expenses of any entertainment, carried out for charity, did not exceed 30 per cent., that the charity should have the full turnover. That is to say, if we held an entertainment for which the expenditure per head was 3d., and could induce our patrons to pay 10d., we could have the whole of the 10d., while, on the other hand, if the expenditure was not covered by the 3d. and we could only induce our patrons to pay 9d., the Treasury stepped in and demanded a tax from us.
9.0 P.M.
That seems to me to be very unfair, especially when we remember that an entertainment is largely in the form of a gamble. Suppose, for instance, I invest £30 in an entertainment designed to help the hospital of my town and only sell £90 worth of tickets. The Treasury come along and take from my small takings their tax. If on the other hand by some good chance or fortuitous circumstance I can dispose of more than £100 of tickets the hospital can benefit to the full amount. I know what was in the mind of the Chancellor of the Exchequer when he put in the 30 per cent. His object was to avoid bogus charities. I quite agree with him. In the Clause I put forward I provide for that by stating that entertainments to which I refer shall be registered under the War Charities Act, 1916, an Act dealing with charities for specific purposes to be registered by the local authorities and controlled in regard to their finances, and the purposes for which they are carried on by these authorities. If the local authority fails to control the charity he Charity Commissioners may step in and supervise the local authority so that we have a double check, the national check of the Charity Commissioners and the local check by the local authority who are closely in touch with the matter.
The War Charities Act says that a war charity must have for its object the general relief of suffering or distress, the supply of needs or comforts, or other similar work "connected with the present War." The House, I think, will agree with me that these are objects to be supported in every quarter of the House, and if we find public-spirited people who are willing to go to the trouble of getting up entertainments for the purpose of finding money for charities in this way, we should give them every assistance. The Charities Act was put forward so that accounts might be kept of the total receipts and expenditure in connection with bazaars, sales of work, entertainments and so on. It is quite clear when the War Charities Act was passed that it was believed that these charities should be supported by entertainments, bazaars, exhibitions, and anything of that kind. I do not think it was ever contemplated that these entertainments should be taxed.
Let me quote a typical instance in my own constituency. I asked a question some weeks ago in this House, and got a reply from the Chancellor of the Exchequer, and the answer indicated that registration would be required in the case I quoted. This Clause is being brought forward in the hope that the Chancellor will accept it. In the year 1896 Bootle had a May Day demonstration which was supported by the public-spirited citizens of Bootle to assist our voluntary hospital. Each year that had gone on raising funds for the hospital. This last four years the Entertainment Tax has been placed upon the demonstration and the Government have taken from us £1,107 12s. 9d., money which would otherwise have gone to the relief of distress in our voluntary hospital. The people of Bootle have a homely saying in regard to things of this kind. When the Treasury dips into the money which we have raised for the support of the hospital they say that it is "taking the pennies out of the blind man's tin." It is quite easy to keep your expenditure below 30 per cent. if you have your entertainment in a building, because you have nothing to erect, you get your artist probably for nothing, and all the expense you are under is the cost of the printing and the check-takers at the door. But Bootle is owned by a Noble Lord who sits in another place. Therefore we have got to hold the entertainments in one of the public parks, and we are barred by Statute against closing the park for more than three days. We have marquees and stands to erect, and so on, and these naturally cause great expense. The balance, after expenses are paid, is probably small. During the last four years, in connection with this May Day demonstration, we have had one bad day out of three and we have never been able to get our expenses within 30 per cent. Earlier in the evening——
I do not quite see how the hon. and gallant Gentleman connects his observations with the Amendment that he has moved.
I just wanted to say that earlier in the evening I heard an ex-Minister accused of not producing a water-tight Clause. Here is one. I have had very little Parliamentary experience, but I have produced a Clause which I hope will meet with the approval of those sitting on the Treasury Bench.
I am not responsible for all the trouble that confronts the hon. Member for Bootle. I understand that they had a wet day on the last May Day festival, but the Government can hardly be held responsible for that. The hon. Member desires to remove the present restriction on charitable entertainments. The Committee will remember that last year entertainments were allowed to be free of this duty if 20 per cent. and not more was spent in expenses, and that was altered to 30 per cent. last year, and no entertainment can get free unless its expenses do not exceed 30 per cent. of the whole of the profits which are devoted to charitable and philanthropic purposes.
War charities come within this class of entertainments. The only purpose of this proposal is to get rid of the restrictions in regard to one particular class of charities. If this concession is given to war charities, we shall have demands for every other class of charity, and we should be asked why we have given it to war charities and not to hospitals and similar institutions. [HON. MEMBERS: "Why not?"] The reason is that we must have a provision of some kind to ensure that these entertainments are organised for charitable purposes and not for profit, otherwise, instead of 30 per cent. for expenses you might have 90 per cent. You might have as much as 95 per cent. going in expenses and only 5 per cent. for charitable purposes, and that kind of thing is not a bona-fide charity entertainment. Therefore, some limit must be placed upon the amount of the expenses. The House agreed last year that 30 per cent. was reasonable, and this arrangement has been successful during the last 12 months. The number of charities taking advantage of this arrangement has largely increased, and the amount collected for charities has also increased. The arrangement has worked exceedingly well, and I ask the Committee not to agree to make an alteration in reference to one particular class of charity.
If persons organised charity entertainments which come under the bogey which has been held up by the Financial Secretary they would come under the ban of the Charity Commissioners or the local authorities. Therefore that argument absolutely falls to the ground. I think there ought to be some concession made in regard to this matter. I could tell the
Committee of a very deserving charity held year after year in my constituency in the past with great success, and this year they have lost £100. I think it is a great shame that in such a case as that they should have to pay this duty.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 163; Noes, 248.
Division No. 231.] AYES. [9.11 p.m. Adams, D. Hardie, George D. Potts, John S. Adamson, Rt. Hon. William Harris, Percy A. Pringle, W. M. R. Adamson, W. M. (Staff., Cannock) Hartshorn, Vernon Richards, R. Alexander, A. V. (Sheffield, Hillsbro') Hastings, Patrick Richardson, R. (Houghton-le-Spring) Ammon, Charles George Hay, Captain J. P. (Cathcart) Riley, Ben Attlee, C. R. Hayday, Arthur Ritson, J. Barker, G. (Monmouth, Abertillery) Hayes, John Henry (Edge Hill) Roberts, C. H. (Derby) Benn, Captain Wedgwood (Leith) Herriotts, J. Roberts, Frederick O. (W. Bromwich) Bonwick, A. Hill, A. Robinson, W. C. (York, Elland) Briant, Frank Hillary, A. E. Rose, Frank H. Broad, F. A. Hinds, John Royce, William Stapleton Bromfield, William Hirst, G. H. Saklatvala, S. Brown, James (Ayr and Bute) Hodge, Rt. Hon. John Salter, Dr. A. Buchanan, G. Jenkins, W. (Glamorgan, Neath) Scrymgeour, E. Burgess, S. John, William (Rhondda, West) Sexton, James Burnie, Major J. (Bootle) Johnston, Thomas (Stirling) Shaw, Thomas (Preston) Butler, J. R. M. (Cambridge Univ.) Jones, Henry Haydn (Merioneth) Shinwell, Emanuel Buxton, Charles (Accrington) Jones, J. J. (West Ham, Silvertown Short, Alfred (Wednesbury) Buxton, Noel (Norfolk, North) Jones, Morgan (Caerphilly) Simpson, J. Hope Cape, Thomas Jones, R. T. (Carnarvon) Sitch, Charles H. Chapple, W. A. Jones, T. I. Mardy (Pontypridd) Smith, T. (Pontefract) Charleton, H. C. Jowett, F. W. (Bradford, East) Snell, Harry Clarke, Sir E. C. Jowitt, W. A. (The Hartlepools) Snowden, Philip Collins, Sir Godfrey (Greenock) Kenworthy, Lieut.-Commander J. M. Spencer, George A. (Broxtowe) Collison, Levi Kenyon, Barnet Stephenson, Lieut.-Colonel H. K. Cowan, D. M. (Scottish Universities) Kirkwood, D. Stephen, Campbell Darbishire, C. W. Lambert, Rt. Hon. George Stewart, J. (St. Rollox) Davies, Alfred Thomas (Lincoln) Lawson, John James Sullivan, J. Davies, David (Montgomery) Leach, W. Thomas, Rt. Hon. James H. (Derby) Davies, J. C. (Denbigh, Denbigh) Lee, F. Thomson, T. (Middlesbrough, West) Davies, Rhys John (Westhoughton) Lees-Smith, H. B. (Keighley) Thorne, W. (West Ham, Plaistow) Davison, J. E. (Smethwick) Lowth, T. Tout, W. J. Dudgeon, Major C. R. Lunn, William Trevelyan, C. P. Duffy, T. Gavan MacDonald, J. R. (Aberavon) Turner, Ben Duncan, C. Macdonald, Sir Murdoch (Inverness) Twist, H. Ede, James Chuter M'Entee, V. L. Walsh, Stephen (Lancaster, Ince) Edmonds, G. McLaren, Andrew Watson, W. M. (Dunfermline) Edwards, C. (Monmouth, Bedwellty) Maclean, Nell (Glasgow, Govan) Watts-Morgan, Lt.-Col. D. (Rhondda) Emlyn-Jones, J. E. (Dorset, N.) Macpherson, Rt. Hon. James I. Webb, Sidney Entwistle, Major C. F. March, S. Wedgwood, Colonel Josiah C. Fairbairn, R. R. Marshall, Sir Arthur H. Weir, L. M. Falconer, J. Maxton, James Welsh, J. C. Gosling, Harry Middleton, G. Westwood, J. Graham, D. M. (Lanark, Hamilton) Millar, J. D. Wheatley, J. Graham, W. (Edinburgh, Central) Morel, E. D. White, Charles F. (Derby, Western) Gray, Frank (Oxford) Morrison, R. C. (Tottenham, N.) White, H. G. (Birkenhead, E.) Greenall, T. Mosley, Oswald Whiteley, W. Greenwood, A. (Nelson and Colne) Muir, John W. Williams, T. (York, Don Valley) Grenfell, D. R. (Glamorgan) Murnin, H. Wintringham, Margaret Griffiths, T. (Monmouth, Pontypool) Murray, R. (Renfrew, Western) Wright, W. Groves, T. O'Grady, Captain James Young, Robert (Lancaster, Newton) Grundy, T. W. Oliver, George Harold Hall, F. (York, W. R., Normanton) Paling, W. TELLERS FOR THE AYES .—Mr. Phillipps and Major Mackenzie Wood..—Mr. Phillipps and Major Mackenzie Wood. Hall, G. H. (Merthyr Tydvil) Parkinson, John Allen (Wigan) Hamilton, Sir R. (Orkney & Shetland) Parry, Lieut.-Colonel Thomas Henry Harbord, Arthur Ponsonby, Arthur
NOES. Agg-Gardner, Sir James Tynte Astbury, Lieut.-Com. Frederick W. Banks, Mitchell Ainsworth, Captain Charles Astor, J. J. (Kent, Dover) Barnett, Major Richard W. Alexander, E. E. (Leyton, East) Baird, Rt. Hon. Sir John Lawrence Barnston, Major Harry Allen, Lieut.-Col. Sir William James Baldwin, Rt. Hon. Stanley Becker, Harry Amery, Rt. Hon. Leopold C. M. S. Balfour, George (Hampstead) Bell, Lieut.-Col. W. C. H. (Devizes) Ashley, Lt.-Col. Wilfrid W. Banbury, Rt. Hon. Sir Frederick G. Bellairs, Commander Carlyon W. Benn, Sir A. S. (Plymouth, Drake) Gretton, Colonel John Penny, Frederick George Bennett, Sir T. J. (Sevenoaks) Guinness, Lieut.-Col. Hon. W. E. Percy, Lord Eustace (Hastings) Berry, Sir George Gwynne, Rupert S. Perkins, Colonel E. K. Betterton, Henry B. Hacking, Captain Douglas H. Perring, William George Birchall, Major J. Dearman Hall, Lieut.-Col. Sir F. (Dulwich) Peto, Basil E. Bird, Sir William B. M. (Chichester) Hall, Rr-Adml Sir W. (Liv'p'l, W. D'by) Pollock, Rt. Hon. Sir Ernest Murray Blades, Sir George Rowland Halstead, Major D. Pownall, Lieut.-Colonel Assheton Blundell, F. N. Hamilton, Sir George C. (Altrincham) Privett, F. J. Bowyer, Capt. G. E. W. Hannon, Patrick Joseph Henry Rae, Sir Henry N. Brassey, Sir Leonard Harmsworth, Hon. E. C. (Kent) Raeburn, Sir William H. Bridgeman, Rt. Hon. William Clive Harrison, F. C. Raine, W. Briggs, Harold Henn, Sir Sydney H. Rankin, Captain James Stuart Brown, Brig.-Gen. Clifton (Newbury) Hennessy, Major J. R. G. Rawlinson, Rt. Hon. John Fredk. Peel Brown, J. W. (Middlesbrough, E.) Herbert, Dennis (Hertford, Watford) Rawson, Lieut.-Com. A. C. Bruton, Sir James Herbert, S. (Scarborough) Rees, Sir Beddoe Buckingham, Sir H. Hewett, Sir J. P. Reid, D. D. (County Down) Buckley, Lieut.-Colonel A. Hilder, Lieut.-Colonel Frank Remnant, Sir James Bull, Rt. Hon. Sir William James Hiley, Sir Ernest Rentoul, G. S. Burn, Colonel Sir Charles Rosdew Hoare, Lt.-Col. Rt. Hon. Sir S. J. C. Reynolds, W. G. W. Burney, Com. (Middx., Uxbridge) Hogg, Rt. Hon. Sir D. (St. Marylebone) Rhodes, Lieut.-Col. J. P. Butcher, Sir John George Hohler, Gerald Fitzroy Richardson, Sir Alex. (Gravesend) Butler, H. M. (Leeds, North) Holbrook, Sir Arthur Richard Richardson, Lt.-Col. Sir P. (Chertsey) Butt, Sir Alfred Hood, Sir Joseph Roberts, Samuel (Hereford, Hereford) Button, H. S. Hopkins, John W. W. Roberts, Rt. Hon. Sir S. (Ecclesall) Cadogan, Major Edward Hopkinson, A. (Lancaster, Mossley) Robertson-Despencer, Major (Islgtn, W.) Campion, Lieut.-Colonel W. R. Horne, Sir R. S. (Glasgow, Hillhead) Rogerson, Capt. J. E. Cassels, J. D. Houfton, John Plowright Rothschild, Lionel de Cautley, Henry Strother Howard, Capt. D. (Cumberland, N.) Roundell, Colonel R. F. Cayzer, Sir C. (Chester, City) Howard-Bury, Lieut.-Col. C. K. Ruggles-Brise, Major E. Cecil, Rt. Hon. Sir Evelyn (Aston) Hudson, Capt. A. Russell, Alexander West (Tynemouth) Chamberlain, Rt. Hon. N. (Ladywood) Hughes, Collingwood Russell-Wells, Sir Sydney Chapman, Sir S. Hume, G. H. Samuel, A. M. (Surrey, Farnham) Churchman, Sir Arthur Hume-Williams, Sir W. Ellis Samuel, Samuel (W'dsworth, Putney) Clarry, Reginald George Hunter-Weston, Lt.-Gen. Sir Aylmer Sanders, Rt. Hon. Sir Robert A. Cobb, Sir Cyril Hurd, Percy A. Sanderson, Sir Frank B. Cockerill, Brigadier-General G. K. Hutchison, G. A. C. (Midlothian, N.) Sandon, Lord Colfox, Major Win. Phillips Hutchison, W. (Kelvingrove) Sassoon, Sir Philip Albert Gustave D. Collie, Sir John Inskip, Sir Thomas Walker H. Shepperson, E. W. Colvin, Brig.-General Richard Beale James, Lieut.-Colonel Hon. Cuthbert Simpson-Hinchcliffe, W. A. Cope, Major William Jarrett, G. W. S. Skelton, A. N. Cory, Sir J. H. (Cardiff, South) Jephcott, A. R. Smith, Sir Allan M. (Croydon, South) Cotts, Sir William Dingwall Mitchell Jodrell, Sir Neville Paul Smith, Sir Harold (Wavertree) Courthope, Lieut.-Col. George L. Jones, G. W. H. (Stoke Newington) Somerville, A. A. (Windsor) Craig, Captain C. C. (Antrim, South) Joynson-Hicks, Sir William Somerville, Daniel (Barrow-in-Furn'ss) Craik, Rt. Hon. Sir Henry Kennedy, Captain M. S. Nigel Spender-Clay, Lieut.-Colonel H. H. Crook, C. W. (East Ham, North) King, Captain Henry Douglas Stanley, Lord Crooke, J. Smedley (Deritend) Kinloch-Cooke, Sir Clement Steel, Major S. Strang Curzon, Captain Viscount Lamb, J. Q. Stewart, Gershom (Wirral) Dalziel, Sir D. (Lambeth, Brixton) Lane-Fox, Lieut.-Colonel G. R. Stockton, Sir Edwin Forsyth Davidson, J. C. C. (Hemel Hempstead) Leigh, Sir John (Clapham) Sturrock, J. Leng Davidson, Major-General Sir J. H. Lloyd-Greame, Rt. Hon. Sir Philip Sueter, Rear-Admiral Murray Fraser Davies, Thomas (Cirencester) Lorden, John William Sugden, Sir Wilfrid H. Davison, Sir W. H. (Kensington, S.) Lorimer, H. D. Sutherland, Rt. Hon. Sir William Dixon, C. H. (Rutland) Lort-Williams, J. Sykes, Major-Gen. Sir Frederick H. Doyle, N. Grattan Lougher, L. Terrell, Captain R. (Oxford, Henley) Du Pre, Colonel William Baring Loyd, Arthur Thomas (Abingdon) Thompson, Luke (Sunderland) Edmondson, Major A. J. Lumley, L. R. Thomson, F. C. (Aberdeen, South) Ednam, Viscount Lynn, R. J. Titchfield, Marquess of Elliot, Capt. Walter E. (Lanark) Macnaghten, Hon. Sir Malcolm Tryon, Rt. Hon. George Clement Erskine, James Malcolm Monteith McNeill, Ronald (Kent, Canterbury) Turton, Edmund Russborough Erskine, Lord (Weston-super-Mare) Maddocks, Henry Ward, Col. L. (Kingston-upon-Hull) Erskine-Bolst, Captain C. Margesson, H. D. R. Waring, Major Walter Falcon, Captain Michael Marks, Sir George Croydon Warner, Sir T. Courtenay T. Falle, Major Sir Bertram Godfray Martin, A. E. (Essex, Romford) Watson, Capt. J. (Stockton-on-Tees) Fawkes, Major F. H. Milne, J. S. Wardlaw Watts, Dr. T. (Man., Withington) Fermor-Hesketh, Major T. Mitchell, W. F. (Saffron Walden) Wells, S. R. Flanagan, W. H. Mitchell, Sir W. Lane (Streatham) Weston, Colonel John Wakefield Ford, Patrick Johnston Moles, Thomas Wheler, Col. Granville C. H. Forestier-Walker, L. Molson, Major John Elsdale White, Lt.-Col. G. D. (Southport) Foxcroft, Captain Charles Talbot Moore, Major-General Sir Newton J. Whitla, Sir William Fraser, Major Sir Keith Morrison, Hugh (Wilts, Salisbury) Windsor-Clive, Lieut.-Colonel George Frece, Sir Walter de Morrison-Bell, Major A. C. (Honiton) Winterton, Earl Fremantle, Lieut.-Colonel Francis E. Murchison, C. K. Wise, Frederick Furness, G. J. Nall, Major Joseph Wolmer, Viscount Galbraith, J. F. W. Nesbitt, Robert C. Wood, Rt. Hn. Edward F. L. (Ripon) Garland, C. S. Newman, Sir R. H. S. D. L. (Exeter) Wood, Sir H. K. (Woolwich, West) Gates, Percy Newson, Sir Percy Wilson Wood, Major Sir S. Hill- (High Peak) Gaunt, Rear-Admiral Sir Guy R. Nicholson, Brig.-Gen. J. (Westminster) Woodcock, Colonel H. C. Gilbert, James Daniel Nicholson, William G. (Petersfield) Yate, Colonel Sir Charles Edward Gilmour, Lt.-Col. Rt. Hon. Sir John Norton-Griffiths, Lieut.-Col. Sir John Yerburgh, R. D. T. Goff, Sir R. Park Oman, Sir Charles William C. Gould, James C. O'Neill, Rt. Hon. Hugh TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Greene, Lt.-Col. Sir W. (Hack'y, N.) Paget, T. G. Greenwood, William (Stockport) Parker, Owen (Kettering) Grenfell, Edward C. (City of London) Pease, William Edwin
NEW CLAUSE.—(Entertainments Duty.)
On and after the thirty-first day of July, nineteen hundred and twenty-three, Section one of the Finance (New Duties) Act, 1916, as amended by any subsequent enactment, shall have effect as if the following scale of rates of Entertainments Duty were substituted for the scale set forth in that Section, as amended by any subsequent enactment:
s. d. Where the payment, excluding the amount of the duty, does not exceed 3½d. 0 0½ Exceeds 3½d., but does not exceed 5d. 0 1 Exceeds 5d., but does not exceed 8d. 0 1½ Exceeds 8d., but does not exceed 1s. 0 2 Exceeds 1s., but does not exceed 1s. 3½d. 0 2½ Exceeds 1s. 3½d., but does not exceed 1s. 9d. 0 3 Exceeds 1s 9d., but does not exceed 2s. 2d. 0 4 Exceeds 2s. 2d., but does not exceed 2s. 7½d. 0 4½ Exceeds 2s. 7½d., but does not exceed 3s. 0 6 Exceeds 3s., but does not exceed 5s. 0 9 Exceeds 5s., but does not exceed 7s. 6d. 1 0 Exceeds 7s. 6d., but does not exceed 10s. 6d. 1 6 Exceeds 10s. 6d., but does not exceed 15s. 2 0 Exceeds 15s., 2s. for the first 15s. and 6d. for every 5s. (or part of 5s.) over 15s.—[ Sir W. de Frece. ]]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
It is not my intention to detain the House with a very long speech. I think I said all I could in favour of this Clause last night, but I wish to urge upon the consideration of the Committee some points which I hope hon. Members will bear in mind in connection with this proposal. This scale of mine helps the poorer and humbler people to obtain cheaper and better entertainment, and it passes on to the public all the benefits which will accrue from the adoption of the scale. It will cost the State very little. The scale only comes into force half way through the financial year. As a working proposal it is practical and effective. The psychological effect of this little encouragement would be less unemployment and more work in all branches of the entertainment industry. That industry is in a parlous state. We have the Prime Minister admitting that he appreciates the sufferings of the industry, but, on the other hand, we have had the Financial Secretary to the Treasury producing figures in order to prove that the cinema industry is to-day in a very prosperous condition. The cinema theatres which were quoted by the right hon. Gentleman last night are huge houses in prosperous streets in large towns and they pay because they cannot help doing so. They are the gilt-edged investments in our business. But what about the small theatres in the surrounding districts? I will undertake to say that for every cinema theatre that is a paying concern there are at least 40 in the immediate neighbourhood on the verge of bankruptcy. The right hon. Gentleman gave us a few instances of paying theatres, but he said nothing as to the others. I want to tell hon. Members who propose to vote against my Clause that thereby they will be hitting the very poorest of the entertainment undertakings. The slightest concession by the Chancellor of the Exchequer will encourage me to withdraw this Amendment. [HON. MEMBERS: "No, no!"] I have already had an offer of a Select Committee to consider the whole question. I have refused it. The only thing I do not want to do, and I say so candidly, is to carry this matter to a Division and thereby put hon. Members who have made promises to their constituents on this question in a very difficult position. Hon. Members opposite have made this matter a party question.
We are making it a people's question.
Those hon. Members may not possibly appreciate our feelings on this side. I am making it a question for the entertainment industry and for the poor people. Whatever happens, if I do not get something to satisfy me in the shape of the scale I have on the Paper I shall divide the Committee and even go into the Lobby myself. But I am hoping that, taking into consideration the small cost involved, the Chancellor of the Exchequer will see his way to accept the scale as it stands. I have nothing more to say except unless I get this concession I am bound to go into the Lobby against the Government. Those who have made pledges to their constituents must consult their own consciences. I have my own conscience to consult and I intend to honour my election pledges by going into the Lobby, if the necessity arises, in favour of this new Clause.
My hon. Friend the Member for Ashton-under-Lyne (Sir W. de Frece) has put his case this evening perfectly straightforwardly and perfectly candidly, and I am quite sure he will not expect me to meet him in any other than a straightforward and candid manner. I want the Committee to know what this Amendment will mean. I have caused, not one, but repeated investigations to be made, and I can assure him, on the responsibility of my technical advisers, that this would cost £2,000,000 a year. The Government have made every possible concession they can make in regard to reduction of taxation, and we have not the money out of which this concession could be made. There is no question about that. It has been suggested that there are more facts in this matter or that the facts I put before the Committee last night were not correct. My hon. Friend the Member for Ashton-under-Lyne, I am perfectly certain, would not impute that I misled the Committee. He did not suggest that I was mis-stating anything to my own knowledge, and I can assure him that the facts I put before the Committee last night were facts which I took a good deal of trouble to investigate. I believe them to be in every detail absolutely accurate and correct. My hon. Friend has made a statement to-night.
I did not tell the Committee last night, but he has told the Committee that I had suggested that this whole matter should be referred to a Select Committee. That offer, however, was refused point blank by my hon. Friend and his friends in the entertainment world. I am not complaining of that refusal. It has, perhaps, got me out of a difficulty, but, that refusal having taken place, I was compelled to act on my own responsibility and from the knowledge I had in my own possession. I made a speech last night, which is in the memory of Members of the Committee, and I cannot go further. I cannot accept this Clause involving £2,000,000; that is an impossibility. But this I can say to my hon. Friend—and I am prepared to say it not only to him, but to the whole Committee—that I am prepared to consider in the course of the current year any fresh facts which he or his friends may care to put before me or whoever may be responsible for the Treasury Department during the course of the year. Those facts shall be most carefully considered, and when we come in the spring of next year to allocate such funds—if there be such funds as I sincerely hope there will be—for the relief of taxation, the taxation in regard to this particular industry shall be one of those most carefully considered. While I cannot, and nobody would expect me, to make any more definite promise than that, it depends on two things, the amount of the possible sum available for distribution in relief of taxation next year, and the various claims for remission of taxation which are put forward from different quarters of the House and different sections in the country.
Will the offer of a Select Committee still be open?
No. The Government made an offer and it was turned down, and that offer is withdrawn. I think it ought to be sufficient for Members of the House, who know the Government and myself, to say that we will give the most careful consideration to the claims of this industry in any remission of taxation next year.
I have an Amendment on the Order Paper which is almost in exactly the same terms as the Amendment moved by the hon. Member for Ashton-under-Lyne (Sir W. de Frece). I think the scale differs in some particulars, but as my hon. Friend, I think, moved the same scale the year before, I will be happy to give way in his favour. I notice he has said in his speech that if the Government can make even the slightest concession he might be prepared to withdraw his Amendment. That does not apply to this side of the House. I am sure that, so far as I am concerned, I will not allow this Amendment to be withdrawn if the slightest concession is made. I do not know whether the hon. Member for Ashton-under-Lyne considers that the statement made by the Financial Secretary to the Treasury gives him a concession which he considers sufficient to allow him to withdraw his Amendment?
indicated dissent.
I see he shakes his head, and I am very glad. This Amendment is of a very reasonable character. As the hon. Member has said, it is designed in the interests of the cheaper seats. I have the two scales, the existing one and the proposed one, and with regard to the cheaper seats, and I see the percentage of the tax at present is 28 per cent., 25 per cent., and 23 per cent. of the admission charges, whereas under the new scale it would be 20 per cent., 18 per cent., and 16 per cent. That is with regard to seats for which the charge of admission is one shilling or under. I would also like to say a word in support of what the hon. Member for Walsall (Mr. P. Collins) has said with regard to the seats which come below 2½d. That is for the old penny show. The percentage here is as high as 50 per cent. The right hon. Gentleman the Financial Secretary to the Treasury, in that excellent debating speech he made yesterday on this Entertainments Duty, waxed very indignant over the statements made about the financial state of the cinema industry, and he gave various proofs as to the flourishing state of some theatres and said the position was due either to inflation of capital or to the excessive amounts paid to the cinema artists in America. All I can say with regard to that speech is that the complaints with regard to the uneven burden of this tax and the weight which is borne by the entertainments industry is not restricted to the cinema industry alone. We have the hon. Member for Walsall showing that the poor penny showman is unable to carry on. I do not see how anyone can charge him with inflated capital. We have the same complaint from the West-end theatres. How can his arguments, which were almost entirely restricted to the cinema industry, be applied to these cases? The right hon. Gentleman said that the trouble which the entertainments industry was suffering from was bad trade conditions. The fact that depression of trade is affecting the entertainments industry is a reason why this tax should be removed. It was all very well putting it on in a time of good trade, when it was a perfectly safe tax on turnover, because everyone was making profits then, but it is absurd to levy the tax when the effect of it will be to close the industry altogether and throw many people out of employment as well as cause incalculable harm to the community who must have reasonable recreation if they are to live any sort of decent happy life. I think that recreation, as far as it is affected by those cheaper seats, is a necessity just as much as any article of food. It is all very well to say it is a luxury. It is nothing of the sort. We know that many people do not consider that life is too much worth living in these hard times. If we are to deprive them of any means of entertainment at all, then I think they would rather do without a few necessities of life, in the way of bread and that sort of thing, rather than be deprived of means of relaxation. I consider that this question of legitimate entertainment for the masses is to-day one of supreme importance. It is of importance to hon. Members opposite, if they want to avoid the perils of Bolshevism to which they are so constantly referring.
I must remind the hon. Member that I selected this Clause on condition that there was to be a speech by the Mover, and that anyone who had an alternative proposal might also speak. I therefore called upon the hon. Member, but I do not really think he is entitled to go into a general discussion, though he may, if he wishes, bring forward arguments to show that his proposal is better than the other.
I apologise, and will not continue if I have gone beyond the scope of the Clause. I hope that those hon. Members who pledged themselves, certainly to a reduction in the duty—and, after all, this scale is purely a reduction—will uphold those pledges. I do not know how far they run, though I have seen a list of them, and they are very numerous. I can assure the Committee that this is a very reasonable Clause, and one which is designed in the interests of the cheaper seats. I hope that hon. Members will vote for it.
rose ——
I do not know whether the right hon. Gentleman was here yesterday when I stated, with regard to this and to the Sugar Duty, that I would allow a general discussion on the repeal Amendment, and would select this Amendment and a similar Amendment with regard to sugar, on the under- standing that only the Mover spoke and anyone who had an alternative proposal on the Paper, but that a general discussion should not take place.
I was not only here, Sir, but it was in answer to a question which I put to you that you made that statement. I rose, not to take part in the general discussion, but merely in consequence of the difference between the statement which the Financial Secretary has made to-night and the flippant way
in which the matter was dealt with last night. [HON. MEMBERS: "No, no!"] Those who heard the speech last night and who have heard what has been said to-night can draw their own conclusions. I felt that some answer ought to be made, but, of course, if you, Sir, rule otherwise, I accept that.
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 183; Noes, 258.
Division No. 232.] AYES. [9.40 p.m. Adams, D. Hartshorn, Vernon Richardson, R. (Houghton-le-Spring) Adamson, Rt. Hon. William Hastings, Patrick Riley, Ben Adamson, W. M. (Staff., Cannock) Hay, Captain J. P. (Cathcart) Ritson, J. Alexander, A. V. (Sheffield, Hillsbro' Hayday, Arthur Roberts, C. H. (Derby) Ammon, Charles George Hayes, John Henry (Edge Hill) Roberts, Frederick O. (W. Bromwich) Attlee, C. R. Herbert, S. (Scarborough) Roberts, Rt. Hon. G. H. (Norwich) Barker, G. (Monmouth, Abertillery) Herriotts, J. Robinson, Sir T. (Lancs., Stretford) Bellairs, Commander Carlyon W. Hill, A. Robinson, W. C. (York, Elland) Benn, Captain Wedgwood (Leith) Hillary, A. E. Rose, Frank H. Bonwick, A. Hinds, John Royce, William Stapleton Brlant, Frank Hirst, G. H. Saklatvala, S. Broad, F. A. Hodge, Rt. Hon. John Salter, Dr. A. Bromfield, William Hughes, Collingwood Scrymgeour, E. Brotherton, J. Jarrett, G. W. S. Sexton, James Brown, James (Ayr and Bute) Jenkins, W. (Glamorgan, Neath) Shakespeare, G. H. Buchanan, G. Jenkins, W. A. (Brecon and Radnor) Shaw, Hon. Alex. (Kilmarnock) Burgess, S. John, William (Rhondda, West) Shaw, Thomas (Preston) Burnie, Major J. (Bootle) Johnston, Thomas (Stirling) Shinwell, Emanuel Butler, J. R. M. (Cambridge Univ.) Jones, Henry Haydn (Merloneth) Short, Alfred (Wednesbury) Buxton, Charles (Accrington) Jones, J. J. (West Ham, Silvertown) Simon, Rt. Hon. Sir John Buxton, Noel (Norfolk, North) Jones, Morgan (Caerphilly) Simpson, J. Hope Cape, Thomas Jones, R. T. (Carnarvon) Sitch, Charles H. Chapple, W. A. Jones, T. I. Mardy (Pontypridd) Smith, Sir Harold (Wavertree) Charleton, H. C. Jowett, F. W. (Bradford, East) Smith, T. (Pontefract) Clarke, Sir E. C. Jowitt, W. A. (The Hartlepools) Snell, Harry Collie, Sir John Kenworthy, Lieut.-Commander J. M. Snowden, Philip Collins, Sir Godfrey (Greenock) Kenyon, Barnet Spencer, George A. (Broxtowe) Collison, Levi Kirkwood, D. Stephenson, Lieut.-Colonel H. K. Cotts, Sir William Dingwall Mitcheil Lambert, Rt. Hon. George Stephen, Campbell Cowan, D. M. (Scottish Universities) Lawson, John James Stewart, J. (St. Rollox) Darbishire, C. W. Leach, W. Sturrock, J. Leng Davies, Alfred Thomas (Lincoln) Lee, F. Sullivan, J. Davies, David (Montgomery) Lees-Smith, H. B. (Keighley) Sutherland, Rt. Hon. Sir William Davies, J. C. (Denbigh, Denbigh) Lowth, T. Thomas, Rt. Hon. James H. (Derby) Davies, Rhys John (Westhoughton) Lunn, William Thomson, T. (Middlesbrough, West) Davison, J. E. (Smethwick) MacDonald, J. R. (Aberavon) Thorne, W. (West Ham, Plaistow) Dudgeon, Major C. R. Macdonald, Sir Murdoch (Inverness) Tillett, Benjamin Duffy, T. Gavan M'Entee, V. L. Tout, W. J. Duncan, C. McLaren, Andrew Trevelyan, C. P. Ede, James Chuter Maclean, Neil (Glasgow, Govan) Turner, Ben Edmonds, G. March, S. Walsh, Stephen (Lancaster, Ince) Edwards, C. (Monmouth, Bedwellty) Marshall, Sir Arthur H. Watson, W. M. (Dunfermline) Emlyn-Jones, J. E. (Dorset, N.) Maxton, James Watts-Morgan, Lt.-Col. D. (Rhondda) Entwistle, Major C. F. Middleton, G. Webb, Sidney Fairbairn, R. R. Millar, J. D. Wedgwood, Colonel Josiah C. Falconer, J. Mond, Rt. Hon. Sir Alfred Moritz Weir, L. M. Gilbert, James Daniel Morel, E. D. Welsh, J. C. Gosling, Harry Morrison, R. C. (Tottenham, N.) Westwood, J. Graham, D. M. (Lanark, Hamilton) Mosley, Oswald Wheatley, J. Graham, W. (Edinburgh, Central) Muir, John W. White, Charles F. (Derby, Western) Gray, Frank (Oxford) Murnin, H. White, H G. (Birkenhead, E.) Greenall, T. Murray, R. (Renfrew, Western) Whiteley, W. Greenwood, A. (Nelson and Colne) Oliver, George Harold Williams, T. (York, Don Valley) Grenfell, D. R. (Glamorgan) Paling, W. Wintringham, Margaret Griffiths, T. (Monmouth, Pontypool) Parkinson, John Allen (Wigan) Wood, Major M. M. (Aberdeen, C.) Groves, T. Parry, Lieut.-Colonel Thomas Henry Wright, W. Grundy, T. W. Perkins, Colonel E. K. Young, Rt. Hon. E. H. (Norwich) Hall, F. (York, W.R., Normanton) Phillipps, Vivian Young, Robert (Lancaster, Newton) Hall, G. H. (Merthyr Tydvil) Ponsonby, Arthur Hamilton, Sir R. (Orkney & Shetland) Potts, John S. TELLERS FOR THE AYES .—Sir Walter de Frece and Captain O'Grady..—Sir Walter de Frece and Captain O'Grady. Harbord, Arthur Pringle, W. M. R. Hardie, George D. Rees, Sir Beddoe Harris, Percy A. Richards, R.
NOES. Agg-Gardner, Sir James Tynte Falcon, Captain Michael Moore, Major-General Sir Newton J. Ainsworth, Captain Charles Falle, Major Sir Bertram Godfray Morrison, Hugh (Wilts, Salisbury) Alexander, E. E. (Leyton, East) Fawkes, Major F. H. Morrison-Bell, Major A. C. (Honiton) Alexander, Col. M. (Southwark) Fermor-Hesketh, Major T. Murchison. C. K. Allen, Lieut.-Col. Sir William James Flanagan, W. H. Nall, Major Joseph Amery, Rt. Hon. Leopold C. M. S. Ford, Patrick Johnston Nesbitt, Robert C. Ashley, Lt.-Col. Wilfrid W. Forestier-Walker, L. Newson, Sir Percy Wilson Astbury, Lieut.-Com. Frederick W. Fraser, Major Sir Keith Nicholson, Brig.-Gen. J. (Westminster) Astor, J. J. (Kent, Dover) Fremantle, Lieut.-Colonel Francis E. Nicholson, William G. (Petersfield) Baird, Rt. Hon. Sir John Lawrence Furness, G. J. Norton-Griffiths, Lieut.-Col. Sir John Baldwin, Rt. Hon. Stanley Galbraith, J. F. W. Oman, Sir Charles William C. Balfour, George (Hampstead) Garland, C. S. O'Neill, Rt. Hon. Hugh Banbury, Rt. Hon. Sir Frederick G. Gates, Percy Ormsby-Gore, Hon. William Banks, Mitchell Gaunt, Rear-Admiral Sir Guy R. Paget, T. G. Barnett, Major Richard W. Gilmour, Lt.-Col. Rt. Hon. Sir John Parker, Owen (Kettering) Barnston, Major Harry Gould, James C. Pease, William Edwin Becker, Harry Greene, Lt.-Col. Sir W. (Hack'y, N.) Penny, Frederick George Bell, Lieut.-Col. W. C. H. (Devizes) Greenwood, William (Stockport) Percy, Lord Eustace (Hastings) Benn, Sir A. S. (Plymouth, Drake) Grenfell, Edward C. (City of London) Perring, William George Bennett, Sir T. J. (Sevenoaks) Gretton, Colonel John Peto, Basil E. Berry, Sir George Guinness, Lieut.-Col. Hon. W. E. Pollock, Rt. Hon. Sir Ernest Murray Betterton, Henry B. Gwynne, Rupert S. Pownall, Lieut.-Colonel Assheton Birchall, Major J. Dearman Hacking, Captain Douglas H. Preston, Sir W. R. Bird, Sir William B. M. (Chichester) Hall, Lieut.-Col. Sir F. (Dulwich) Pretyman, Rt. Hon. Ernest G. Blades, Sir George Rowland Hall, Rr-Adml Sir W.(Liv'p'l,W.D'by) Privett, F. J. Blundell, F. N. Halstead, Major D. Rae, Sir Henry N. Bowyer, Capt. G. E. W. Hamilton, Sir George C. (Altrincham) Raeburn, Sir William H. Brassey, Sir Leonard Hannon, Patrick Joseph Henry Ralne, W. Bridgeman, Rt. Hon. William Clive Harmsworth, Hon. E. C. (Kent) Rankin, Captain James Stuart Briggs, Harold Harrison, F. C. Rawlinson, Rt. Hon. John Fredk. Peel Brown, Brig.-Gen. Clifton (Newbury) Henn, Sir Sydney H. Rawson, Lieut.-Com. A. C. Brown, J. W. (Middlesbrough, E.) Hennessy, Major J. R. G. Reid, D. D. (County Down) Bruton, Sir James Herbert, Dennis (Hertford, Watford) Remnant, Sir James Buckingham, Sir H. Hewett, Sir J. P. Rentoul, G. S. Buckley, Lieut.-Colonel A. Hilder, Lieut.-Colonel Frank Reynolds, W. G. W. Bull, Rt. Hon. Sir William James Hiley, Sir Ernest Rhodes, Lieut.-Col. J. P. Burn, Colonel Sir Charles Rosdew Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Richardson, Sir Alex. (Gravesend) Burney, Com. (Middx., Uxbridge) Hogg, Rt. Hon. Sir D. (St. Marylebone) Richardson, Lt.-Col. Sir P. (Chertsey) Butcher, Sir John George Hohler, Gerald Fitzroy Roberts, Samuel (Hereford, Hereford) Butler, H. M. (Leeds, North) Hopkins, John W. W Roberts, Rt. Hon. Sir S.(Ecclesall) Butt, Sir Alfred Hopkinson, A. (Lancaster, Mossley) Robertson-Despencer, Major(Isigtn, W) Button, H. S. Horne, Sir R. S. (Glasgow, Hillhead) Rogerson, Capt. J. E. Cadogan, Major Edward Houfton, John Plowright Rothschild, Lionel de Campion, Lieut.-Colonel W. R. Howard, Capt. D. (Cumberland, N.) Roundell, Colonel R. F. Cassels, J. D. Howard-Bury, Lieut.-Col. C. K. Ruggles-Brlse, Major E. Cautley, Henry Strother Hudson, Capt. A. Russell, Alexander West- (Tynemouth) Cayzer, Sir C. (Chester, City) Hume, G. H. Russell-Wells, Sir Sydney Cecil, Rt. Hon. Sir Evelyn (Aston) Hume-Williams, Sir W. Ellis Samuel, A. M. (Surrey, Farnham) Cecil, Rt. Hon. Lord R. (Hitchin) Hunter-Weston, Lt.-Gen. Sir Aylmer Samuel, Samuel (W'dsworth, Putney) Chamberlain, Rt. Hon. N. (Ladywood) Hurd, Percy A. Sanders, Rt. Hon. Sir Robert A. Chapman, Sir S. Hutchison, G. A. O. (Midlothian, N.) Sanderson, Sir Frank B. Churchman, Sir Arthur Hutchison, W. (Keivingrove) Sandon, Lord Clarry, Reginald George Inskip, Sir Thomas Walker H. Sassoon, Sir Philip Albert Gustave D. Coates, Lt.-Col. Norman Jackson, Lieut.-Colonel Hon. F. S. Sheffield, Sir Berkeley Cobb, Sir Cyril James, Lieut.-Colonel Hon. Cuthbert Shepperson, E. W. Cockerill, Brigadier-General G. K. Jephcott, A. R. Simpson-Hinchcliffe, W. A. Colfox, Major Wm. Phillips Jodrell, Sir Neville Paul Skelton, A. N. Colvin, Brig.-General Richard Beale Joynson-Hicks, Sir William Smith, Sir Allan M. (Croydon, South) Conway, Sir W. Martin Kennedy, Captain M. S. Nigel Somerville, A. A. (Windsor) Cope, Major William King, Captain Henry Douglas Somerville, Daniel (Barrow-in-Furn'ss) Cory, Sir J. H. (Cardiff, South) Lamb, J. Q. Spender-Clay, Lieut.-Colonel H. H. Cotts, Sir William Dingwall Mitchell Lane-Fox, Lieut.-Colonel G. R. Stanley, Lord Courthope, Lieut.-Col. George L. Leigh, Sir John (Clapham) Steel, Major S. Strang Craig, Captain C. C. (Antrim, South) Lloyd-Greame, Rt. Hon. Sir Philip Stewart, Gershom (Wirral) Craik, Rt. Hon. Sir Henry Lorden, John William Stockton, Sir Edwin Forsyth Crook, C. W. (East Ham, North) Lorimer, H. D. Sueter, Rear-Admiral Murray Fraser Crooke, J. Smedley (Deritend) Lort-Williams, J. Sugden, Sir Wilfrid H. Curzon, Captain Viscount Lougher, L. Sykes, Major-Gen. Sir Frederick H. Dalziel, Sir D. (Lambeth, Brixton) Loyd, Arthur Thomas (Abingdon) Terrell, Captain R. (Oxford, Henley) Davidson, J. C. C. (Hemel Hempstead) Lumley, L. R. Thompson, Luke (Sunderland) Davidson, Major-General Sir J. H. Lynn, R. J. Thomson. F. C. (Aberdeen, South) Davies, Thomas (Cirencester) Macnaghten, Hon. Sir Malcolm Titchfield, Marquess of Davison, Sir W. H. (Kensington, S.) McNeill, Ronald (Kent, Canterbury) Tryon, Rt. Hon, George Clement Dixon, C. H. (Rutland) Maddocks, Henry Turton, Edmund Russborough Doyle, N. Grattan Malone, Major P. B. (Tottenham, S.) Ward, Col. L. (Kingston-upon-Hull) Du Pre, Colonel William Baring Margesson, H. D. R. Waring, Major Walter Edmondson, Major A. J. Martin, A. E. (Essex, Romford) Warner, Sir T. Courtenay T. Ednam, Viscount Mason, Lieut.-Col. C. K. Watson, Capt. J. (Stockton-on-Tees) Elliot, Capt. Walter E. (Lanark) Milne, J. S. Wardlaw Watts, Dr. T. (Man., Withington) Erskine, James Malcolm Monteith Mitchell, W. F. (Saffron Walden) Wells, S. R. Erskine, Lord (Weston-super-Mare) Mitchell, Sir W. Lane (Streatham) Western, Colonel John Wakefield Erskine-Bolst, Captain C. Moles, Thomas Wheler, Col. Granville C. H. Eyres-Monsell, Com. Bolton M. Molson, Major John Elsdale Windsor-Clive, Lieut.-Colonel George Winterton, Earl Wood, Sir H. K. (Woolwich, West) Yerburgh, R. D. T. Wise, Frederick Wood, Major Sir S. Hill- (High Peak) Wolmer, Viscount Woodcock, Colonel H. C. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Wood, Rt. Hn. Edward F. L. (Ripon) Yate, Colonel Sir Charles Edward
NEW CLAUSE.—(Exemption from Entertainments Duty for agricultural shows.)
After the first day of May, nineteen hundred and twenty-three, Entertainments Duty, within the meaning of the Finance (New Duties) Act, 1916, as amended by any subsequent enactment, shall not be charged on payments for admission to any agricultural show on account of a band being employed.—[ Mr. Peto. ]
Brought up and read the First time.
I beg to move, "That the Clause be read the Second time."
This Clause will, I think, arouse no controversy, acute or otherwise. Agricultural shows are not entertainments. The object of agricultural shows is to encourage the development of agriculture. The only object of charging gate money is to secure a sufficient fund to pay for the expenses of the show and the prizes for the encouragement of the various branches of agriculture. The object of having a band at such a show is, of course, to get a wider and more general attendance of the public so as to increase the gate money. No one makes a profit out of it. It is not an entertainment for profit, so that really when you charge Entertainment Tax upon an agricultural show merely because it employs a band you are putting a tax upon the development of agriculture, and I hold that at a time when the Government are doing everything they can for the encouragement of agriculture the very last thing they should do is to put a tax upon these essential meetings, which play a most useful part.
For three long wear years it has been my privilege to move this Amendment. On every occasion I have gone to a Division, and I propose to follow the same course to-night. I had hoped last year the right hon. Gentleman the Member for Hillhead (Sir R. Horne) would have given in. I thought his sense of Scottish humour would have seen that there was no entertainment whatever in an agricultural show. I endorse every word that has been said by the Mover of the Amendment, and I challenge my right hon. Friend to go to a Division on the point.
I support this Amendment because I represent a purely agricultural constituency, and I am sure that my constituents will welcome any concession which the Government may think fit to grant. We have had a good deal of discussion about the Entertainments Duty to-night, and about pledges which have been given. I would like to say that at the last General Election I did not give any pledge in connection with cinemas, because I only have two cinemas in my division.
I must ask the hon. and gallant Member to keep to the subject of the Amendment.
I support the Amendment for various reasons. In the first place, agricultural shows are not run for profit. There is no dividend made out of them. All the revenue received in gate money goes towards the prize fund and the general organisation in connection with the show. In the second place, the shows are run entirely for the encouragement and benefit of the greatest industry in this country, in which more people are employed than in any other industry, namely, agriculture. Further, I support the Amendment because the time has come when this Government should do everything in their power to relieve that industry, which to-day is so sorely depressed that even the employers and the agricultural labourers are finding it very difficult to live. I hope that the Committee will be unanimously in favour of the abolition of this tax as far as agricultural shows are concerned.
I should like to draw the attention of the Financial Secretary to a new Clause on the Paper in my name, and in the name of two other hon. Members providing that
Entertainment Duty shall not be charged on payments for admission to any agricultural or horticultural show arranged by a society which is not conducted for profit, notwithstanding the fact that the society may have engaged a band to perform within the precincts of the show ground, or that riding and driving competitions may have been included in the programme of such show.
Horticultural shows are in almost exactly the same position as agricultural shows, and if my right hon. Friend will include the question of horticultural shows in his reply, which I hope will be favourable, the two Amendments could be dealt with together.
10.0 P.M.
Various reasons have been adduced this afternoon and evening why I should accept various proposals, but nothing so pathetic has been suggested to me as the statement of the hon. Member for Thirsk and Malton (Mr. Turton) that for three weary years he has been pressing the question of agricultural shows from Debate to the Division Lobby and back again from the Division Lobby to this House. The idea that I should condemn my hon. Friend to another three years' fruitless effort in that direction has touched my hard heart, and I think I ought to accept this Amendment. [HON. MEMBERS: "Help your friends¡"] No. In order that both sides of the Committee may realise that the Government intends to be fair in this matter, I shall also accept the suggestion to exempt horticultural shows. I would ask the right hon. Member for Chelmsford (Mr. Pretyman) not to press the question of trotting competitions now, because I am not quite sure what that would involve. [An HON. MEMBER: "Will it apply to Zoological Gardens?"] Zoological gardens have nothing to do with horticulture. I cannot accept either of the Amendments in their existing form, but I will, with the permission of the Committee, bring up a New Clause on Report to carry out what I believe is the intention of the Committee in regard to these two matters.
Has the right hon. Gentleman estimated how much this concession will cost?
£50,000.
Having regard to what the right hon. Gentleman has said, that he intends to accept the Amendment on Report, I beg leave to withdraw the Amendment.
No¡
I rise for the purpose of asking a practical question, which is of some importance to a good many people, and that is, when will this concession come into operation. A great many shows are being held at the present time all over the country, and it would be very useful to the promoters of those shows if they knew that they would not be taxed in regard to the shows after this date. There is some doubt on that point.
Has my right hon. Friend noticed that in my Amendment this concession is to date from the 1st May last, so as to cover all agricultural shows that have been held or will be held this summer?
I am not quite sure how far it is possible to antedate a concession of this kind. I will make inquiries to-morrow morning from my technical advisers. The concession should not be delayed any longer than is necessary. If one makes a concession we ought to do it with the best grace possible. I will consult my technical advisers as to the earliest possible moment at which the concession can be put into operation.
I would call attention to the statement made by the right hon. Gentleman. It opens the door to a very serious point. He is now going to make retrospective a Clause in this Bill. No Clause in this Bill can come into operation until the Bill becomes law, and I certainly trust that a Conservative Government will not insert in a Finance Bill a Clause in that way.
My right hon. Friend is a much greater authority than I am in regard to the question of finance. I said that I would consult my technical advisers to-morrow morning. I am quite sure that they will advise me as to what is right, and I shall be guided by their advice.
Question, "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(Amendment of 10 and 11 Geo. V., c 18, s. 21.)
Section twenty-one of the Finance Act, 1920 (which provides for deduction from assessable income in respect of children), shall have effect as if the words "or who is an indentured apprentice without pay" were added after the word "establishment," in line six of Sub-section (1) of the said Section and after the word "aforesaid" in line six of Sub-section (2).—[ Mr. Hilton Young. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The reason for the allowance in the Finance Act, 1920, in respect of children is that the parent is making a sacrifice in order to secure for his children a good education. There is a class of parent to whom it appears to me that the same principle applies. The point, I confess, is a new one to me. Nevertheless, I do not think there is any reason in principle against this concession. The class of parents to whom the principle applies are the parents who put their children out as indentured apprentices, without pay. They also are making a sacrifice for their children. I am sure, in any modern idea of what good education is, we must say that indentured apprentices are receiving an education as valuable as that which is obtained in many educational institutions. In these circumstances, unless there is a very strong reason to the contrary, of which I am not aware, I suggest that the same allowance should be extended to this other deserving class of parents as is already extended to their like.
I am indebted to my right hon. Friend for the very fair way in which he has put this before the Committee. He has not, however, quite realised the difficulties of the case. He has occupied the position which I now hold, and this matter was discussed on more than one occasion during his tenure of office. His Government, quite rightly, did not see their way to accept this, for the reason that we have already gone a very long way in regard to children's education and maintenance, and in favour of granting exemptions for children. We are asked here that this should be extended to apprentices. If we grant that, we shall next be asked for a concession for those apprentices who are paid 2s. 6d., and after that for apprentices who are paid 5s. You cannot shut the gate once it has been opened. At this last hour of the night, I ask the right hon. Gentleman not to press the Amendment. It was considered before by the Royal Commission, and in 1920 very fully by this House; and the House decided not to allow the concession. The Amendment was then moved by an hon. Member from Wales upon the Front Opposition Bench, but it was not pressed, and was afterwards withdrawn.
One argument has been used by the Financial Secretary, which weighed with me very much. It had escaped my knowledge that this was considered by the Royal Commission, and not recommended. I consider it to be of such very great importance that we should adhere to the recommendations of the Royal Commission and should work towards getting them all carried out, and not go in for fresh undertakings until they are carried out, that, in view of what has been said, I beg to ask leave to withdraw the Amendment.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Limitation of Treasury powers to issue new securities.)
The powers of the Treasury under Section sixty of the Finance Act, 1916 (which empowers the Treasury to carry out arrangements for the exchange of securities under any War Loan Act), as also under Section one of the War Loan Act, 1919 (which empowers the Treasury to issue fresh securities to replace maturing securities or Treasury bills), and under Section forty-seven of the Finance Act, 1921 (which extends the powers exercisable under Section sixty of the Finance Act, 1916), shall cease on the thirty-first day of March, nineteen hundred and twenty-four, unless Parliament shall otherwise previously determine.—[ Mr. Hilton Young. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I put this Clause down in order to raise a matter for discussion, rather by way of giving notice of an important question this year which ought to receive consideration before next year. It is of very great importance, under two particulars, and therefore I need not apologise for dwelling upon it. In the first place, the Amendment raises the question of the Parliamentary control of the issue, conversion and renewal of fresh Government securities. Secondly, it raises the question of Exchequer policy as regards Treasury Bills. It has appeared to me, and to others better informed, that the time will shortly come1—it will come within the course of the ensuing year—when these matters should be put on a more regular basis constitutionally, and on a more practical basis financially than hitherto. The Treasury can issue fresh securities for conversion or renewal, and in doing so they depend on those Clauses which were emergency War Clauses. The old Constitutional practice, before the War, was that the Treasury should get afresh, every year, what power they needed in order to issue fresh Government securities. It is desirable, in the interests of Parliamentary control and of finance, that we should, sooner or later, revert to that practice of the Treasury securing, year by year, and not under lasting Statutes, the power it needs for issuing fresh securities for conversion or renewal. I call the attention of the Chancellor of the Exchequer and of the Government to this, in order that it may be considered, if possible, before next year.
The second matter is as regards Government policy in regard to outstanding Treasury Bills. Before the War, the amount of Treasury Bills allowed to be permanently outstanding, that is renewable bills, was comparatively small. The figure immediately before the War was £14,500,000. We now have many hundreds of millions of bills outstanding. After as careful a perusal as I can give to the Emergency War Statutes governing the Treasury powers for the issues of bills, I think there is some doubt as to what exactly those powers are. More expert lawyers than I may have a clear idea, but it is very difficult to expect the public to gain any idea of what the Treasury powers in these matters are. Generally speaking, they are, practically, unlimited. The amount of Treasury Bills is rapidly diminishing. Those hon. Members who are interested in finance and banking, will be aware that Treasury Bills are a necessity, to some extent, to the banking community at the present day, for reasons into which I am not going. It is of urgent interest to the banking and financial community to have a rough idea of what the policy of the Government, regarding this permanent amount of outstanding renewable bills, is going to be as we work back to normal times. I say that the time is rapidly approaching, and may almost now be at hand, when the Treasury powers, as regards the issue of renewable bills, should be put on a proper legal basis, and should not be dependent on Emergency War Statutes. Some announcement should be prepared as to what the Chancellor of the Exchequer, the Treasury, and the Govern- ment believe to be the right amount of Treasury Bills to be kept outstanding, and renewable from year to year, as it were, comparable to the £14,500,000 kept outstanding before the War. This is a matter of real importance to the nervous ganglion of banking and finance in the City, and is well deserving of attention.
The points raised by the right hon. Gentleman are well worthy of consideration. I was not quite clear what was the immediate object of the Clause, but with regarding the second question which he raised, I agree that the time is approaching when it will have to be considered very carefully in all its aspects, because we shall soon be in a position to come to some kind of conclusion as to what the requirements of the country will be in contra-distinction to what was necessary before the War. As to the first part of the right hon. Member's speech, he is as well aware as I am of the difficulties of tying the hands of the Treasury too much. While before the War questions of conversion arose comparatively rarely, and for considerably small amounts, they are now arising in one form or another almost constantly. The right hon. Gentleman is aware of the objection that obviously presents itself with regard to taking the power of conversion issues out of the hands of the Treasury. Of course, there is the practical difficulty of discussing conversion terms prior to an operation.
Perhaps I did not explain myself clearly owing to the brevity of my remarks. I do not wish for a moment to impair Treasury discretion as to the time, nature, or price of securities, or the terms of issue, but simply that as a matter of constitutional propriety authority to make such issues should be obtained.
If we were reviewing the subject with a view to legislation, it would be a question whether a year would be the right term, or whether we should not have a somewhat longer term. I understand that my right hon. Friend rose in order to place the Committee in possession of the two points which he thinks ought to be borne in mind by the Government. I hope that what I have said will be sufficient, and that he will not deem it necessary to divide the Committee upon the Motion.
After the statement of the right hon. Gentleman I beg to ask leave to withdraw the Amendment.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Amendment of 12 and 13 Geo. V., c. 17, s. 24, and 8 and 9 Geo. V., c. 15, Rules 8 and 9 of No. V of Schedule A.)
(1) Rules 7 and 8 of No. V of Schedule A of the First Schedule to the Income Tax Act, 1918, as amended by the Finance Act, 1922, Section twenty-four, shall apply to Inhabited House Duty as it applies to Income Tax.
(2) Section eight of the Revenue Act, 1911, shall be read and construed as though the Inhabited House Duty value, the Income Tax value, and the annual value to be determined by the Commissioners of Customs and Excise, respectively, referred to the value as reduced in accordance with the said Rules as so amended.—[ Mr. Gates. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
At present the Income Tax under Schedule A is assessed, not on the gross annual value, but on the net annual value, reduced in accordance with the Rules under Schedule A of the Income Tax Act of 1918, as amended, that is to say, it is the sum arrived at after deducting the amount paid for repairs, namely one-sixth, whereas the Inhabited House Duty is assessed on the gross value. The right hon. Gentleman has made some concession to payers of Inhabited House Duty, and I suggest that he would increase their gratitude if he would accept this Amendment to the Bill.
I do not think my hon. Friend quite realises where his Amendment will take him. The proposal is that Inhabited House Duty, which is payable by the tenant, should be reduced by the amount of the repairs which the landlord makes to the property. In the first place, it does not matter to the tenant whether or not the landlord does repairs to the property. A more difficult question is this: Under the existing law relating to Income Tax the landlord has the right within three years, of applying to the Commissioners to reassess the amount of the repairs on the average of the five years preceeding the year of assessment, so that the tenant who pays the Inhabited House Duty would have no opportunity of knowing what payments he ought to make and, very often, the tenant might have left the property long before the landlord had settled the question, and the administration would be very difficult. In addition, the alteration of this tax would cost about £700,000 a year. The Government made fairly large concessions yesterday with regard to Inhabited House Duty and I hope that, in the circumstances, the hon. Member will not press the Amendment.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Excise Duty.)
In lieu of the ordinary Excise Duty now payable for every gallon computed at proof of spirits distilled in Great Britain and Northern Ireland there shall, as from the first day of July, nineteen hundred and twenty-three, be charged, levied, and paid an Excise Duty of two pounds ten shillings only.—[ Mr. Hughes. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The Clause is a very brief one, but stripped of its unnecessary verbiage it might be reduced to even shorter terms, and summarised as a reduction of the present Excise duty on spirits from 72s. 6d. a gallon to 50s. I propose first to take the point of view of the great distilling industry. To make the present position of that industry clear it will be necessary briefly to review its recent, history. I go back to the year 1900. That might be called the golden age so far as price, quality, and the quantity of spirits available in this country are1 concerned. There were 199 distilleries in the United Kingdom in that year. The Excise duty was 11s. a gallon, the consumption of home-made spirit was 38,750,000 gallons, and the revenue derived from that was £20,333,000. During the next nine years it will be found, on examination, that the profits of the distilling industry were of the most moderate dimensions. The distilleries were receiving but five per cent. upon the capital invested. Then came the famous, or perhaps I may be permitted to say infamous, Budget of 1909, by which the right hon. Member for Carnarvon Boroughs, posing as the great temperance reformer of the age, imposed an increased duty on spirits of 3s. 9d. per gallon or an increase of 33 per cent. The result of the increased duty was merely the normal result of any such increase of duty on such a commodity as this. In 1910 there was a decrease in consumption from 32,000,000 to 21,500,000 gallons or 33 per cent. In spite of that increase in duty the revenue fell from £17,500,000 to £14,000,000 or over 16 per cent. In 1911 the consumption of home-made spirits in this country was 25⅓ million gallons. It then remained stationary for the next two years and from 1913 to 1916, there was a slight increase. In 1916, an early year of the War, it stood at, approximately, 29 million gallons which was its maximum under the 14s. 9d. duty. I would like to place before the Committee the result of that decreased consumption on the great distilling industry. The patent still distillers were compelled to curtail production drastically, and many of the pot still distillers were compelled to close down. Between 1910 and 1916, fourteen distilleries were closed, and many persons were thrown out of employment, not only in the distilling industry itself, but in the many allied trades connected with it.
That briefly was the effect of the first attack on the distilling trade by the right hon. Gentleman the Member for Carnarvon Boroughs. That was not all. In 1915, it will be remembered, a Bill which became an Act under the title of The Immature Spirit Act was passed by this House and the whole complexion of the distilling industry was thereby changed. Prior to that, the larger part of the spirits consumed in the United Kingdom were under three years old and some of those spirits were under one year old. Therefore the stock which was adequate in 1915, prior to the passing of this Act, became inadequate after the passing of the Act, because the youngest whisky in any blend of whisky had to be over three years old. The result of that was a shortage of stock and the shortage of stock necessarily led to an advance in price, but the advance had not attained its full impetus when the larger part of the patent still production was diverted for munition purpose. That was in 1916. In 1917 distillation except for munition purposes, was partially stopped and, in the following year, distillation except for munition purposes was entirely stopped. There is one fact I should like the Committee to bear in mind which in my opinion can be placed to the credit of the distilling industry, particularly the patent still distillers, during the War. They did not wait for their distilleries to be commandeered, but they voluntarily submitted a scheme to the Government and under that scheme it was provided that the nation should receive a full supply of alcohol and this, it should be remembered, at the same price and at the same rate of profit as the distillers had received in pre-War times. I think I am right in saying that during the War the distillers contributed 50,000,000 gallons of alcohol for making high explosives.
At this point I should like to mention the effect of the taking over by the Central Control Board of the distribution of whisky. In 1917 it was decreed by the Central Control Board that all the future clearances of spirits for home consumption should not exceed 50 per cent. of what they had been previously, that is to say, of what the consumption had been for the year ended 31st March, 1916. That went on for two years. In April, 1918. the duty was increased from 14s. 9d. [HON. MEMBERS: "Agreed¡"] It is necessary, in order that the Committee should understand my argument, that they should permit me to develop it in my own way. In April, 1918, the duty was increased to 30s. a gallon, or over 100 per cent. [An HON. MEMBER: "We know all that¡"] If hon. Members on this side know all that, I take it that they will vote for this Clause. The Food Ministry stepped in and issued an Order regulating inter-trade prices and the prices to be charged to the public. In 1918 the War was over, and the war on the distillers, it might have been presumed, would cease at the same time, but such was not the case. It was decided that this industry should still be squeezed to satisfy the rapacity of the then Chancellor of the Exchequer, and in 1919 the Excise Duty on spirits was increased from 30s. to 50s., and in the following year it was again increased from 50s. to 72s. 6d. I think I am safe in saying that there is no industry in this country which has been taxed to the extent that the spirit industry has been taxed in recent years.
The control of the prices was definitely removed on 31st August, 1921, but no serious attempt was made by the distilling industry to advance the prices, and I wish the same could be said with regard to other trades. A great many Members in this House no doubt occasionally purchase a bottle of whisky, and I doubt whether many of them know exactly how much of the price of that bottle of whisky goes to the Government and how much of it goes to the distilling industry. The distillers, for making and maturing the whisky, take 1s. 4d., the cases, bottles, labour, and freights take 1s. 2d., the retailer takes 1s. O½d., the wholesale distributor takes 6d., and the tax is the balance, 8s. 5½d. It may be of interest to the Committee, or to some of the Committee, if I trace the effect of the last three increases of the Spirit Duty. The total consumption of home-made spirits during the year ended 31st March, 1916, being the last year before the Food Ministry took control, was 28,850,000 gallons. The restriction of clearances, or rationing, under the Food Ministry control took place in 1917, and for the year ended 31st March, 1918, the consumption fell to 10,325,000 gallons. Control was partially removed in November, 1919, and consumption increased. On 31st March, 1920, it was 17,800,000 gallons. [HON. MEMBERS: "Divide¡"] The Committee may bear with me for a few moments in view of the fact that so many long speeches have been made during these Debates on the Finance Bill: in view of the fact that I have not spoken on it, perhaps the Committee will allow me to try and develop my argument? I now come to the Budget of 1920——
May I remind the hon. Gentleman that we are dealing with the Budget of 1923?
I bow to your ruling, Sir, but it is necessary for me to show these three increases and their effect upon the consumption and upon the revenue during the current and prospective years. However, I will leave that point. There are, however, certain deductions that I should like to draw from the figures I have already given to the Committee. It may be remembered that control was not removed until November, 1919, and immediately that control was removed there was an upward tendency in consumption. During the three months immediately following that removal of control the increased consumption was over 2,000,000 gallons. But for the imposition of the additional duty of 22s. 6d.—which I am not discussing at the present moment— [An HON. MEMBER: "It is an imposition on good nature¡"]—I make bold to assert that the consumption for the full year would have not been less than 25,000,000 gallons.
Is it in order, Mr. Deputy-Chairman, for an hon. Member to talk out all the other Amendments on the Paper?
I do not know that is the intention of the hon. Member, but I should be glad if he would shorten his remarks.
Is it in order for the Labour party to try to shorten discussion in this way?
Is it in order, I would ask again, for an hon. Member deliberately to endeavour to talk out all the other Amendments on the Paper?
I do not think that is the intention of the hon. Gentleman who is speaking, but he might come to the Budget of 1923, and not go into so much detailed discussion.
It was certainly not my intention to talk out other Amendments, and I would rather leave that to hon. Members opposite on other occasions.
And they can talk.
The Chancellor of the Exchequer has not foretold the estimated consumption for the coming year, but I estimate that it will not exceed 12,500,000 gallons. At present the duty is 72s. 6d. per gallon, and on a consumption of 12,500,000 the revenue will not exceed £45,500,000. Whenever there has been an increase in the duty on spirits there has always been a decrease in the consumption, but an increase in the consumption of beer. On this occasion there has been a decrease in the duty on beer, and therefore there will be a decreased consumption of spirits. It is the experience spread over many years that an increased spirit duty always leads to a greater beer consumption. On the other hand, all experience shows and the figures clearly demonstrate that if the spirit duty was reduced from 72s. 6d. to 50s. per gallon the result would be an immediate increase in the consumption of spirits.
I want to draw your attention, Mr. Chairman, to the fact that the hon. Member is reading his speech.
The higher consumption at the lower rate of duty would produce a revenue of 46⅞ millions sterling, or nearly £2,000,000 more than is being received from the present rate of duty. My main point is that if the Spirit Duty be reduced from 72s. 6d. to 50s. per gallon, owing to increased consumption there will be no loss to the revenue.
The length of my observations must be in inverse proportion to the length of my hon. Friend's speech, but I think I can briefly deal with the main drift of his argument. The effect of the reduction which he proposes will be that whisky will be sold at 10s. instead of 12s. 6d. per bottle, and a reduction of 1d. on the fifth of a gill will be made in the retail sale. It would be unwise probably to anticipate an increased consumption of more than 10 per cent., and if there were such an increased consumption the result would be a loss to the revenue of £9,000,000 in the present year and of £12,000,000 in a full year. If, as the hon. Gentleman anticipates no loss to the revenue would follow the reduction, it would be necessary to obtain an increased consumption of 45 per cent. Under these circumstances I cannot possibly accept the new Clause.
Question, "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(Amendment of Edw. 7, c. 8.)
Notwithstanding anything contained in this or any other Act to the contrary, the Finance (1909–10) Act, 1910, Schedule I ( c ) Provisions applicable to retailers' off licences, (2) Minimum quantity of spirits to be sold), shall be deemed to have effect as if, in lieu of the words "one reputed quart bottle," there were inserted the words "one reputed pint bottle," and accordingly the minimum quantity which may be sold by a person holding the off-licence to be held by a retailer of spirits shall be. in England, one reputed pint bottle.—[ Mr. Hannon. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
This Clause asks a very small concession from the Government, namely, that off-licence holders shall be permitted to sell reputed pints of whisky and brandy instead of reputed quarts only as they are obliged to do under the existing law. No doubt objections will be made to this proposal from three different quarters. In the first place the teetotallers who object to every variety of concession to the licensed trade will see in the adoption of this new Clause the possibility of an extension of the facilities for home drinking inasmuch as it will enable the purchase of smaller bottles of whisky or brandy than at present. But the fact that at present the consumer is obliged to purchase a full quart bottle instead of the smaller measure suggested should rather tend in the contrary direction, so that if anything the argument of the total abstainer that the new Clause will encourage further drinking has no substance at all. On the other hand objections may be raised from the licensed trade by on licence holders who pay a much higher licence duty. They will say they can supply the necessary small bottles to persons who do not care to purchase reputed quarts. The on-licence holder can sell his whisky or brandy at any time and it is to the advantage of purchasers, and particularly of householders where brandy may be, needed as a medicine, to purchase the smaller quantity at the present price of these spirits. In pre-War days the reputed pint of whisky could be bought for 2s. and of brandy for 3s. and in such circumstances there might be some substance in the on-licence holders argument, but now the prices are 12s. 6d. and 17s. for whisky and brandy respectively, the argument does not hold water at all. The third objection is one which will probably most appeal to the Government. It comes from the revenue authorities who may suggest that the adoption of the modification will involve a reduction of revenue. I beg to Submit to the Financial Secretary to the Treasury that it will not operate against the revenue at all, but will, in point of fact, encourage people who desire to have access to moderate quantities of spirits for their families to buy these small bottles where otherwise they would buy none at all and consequently the revenue will benefit substantially if this modification of the law is made.
I would ask my right hon. Friend the Financial Secretary to the Treasury, who has been so generous in the concessions he has made to other quarters, to consider this small matter of giving facilities to the grocers and the off-licence holders to supply small bottles of whisky and brandy to their clients. My Amendment is so convincing that it is quite unnecessary for me to produce a long argument, and I do not intend to stand in the way of hon. Gentlemen opposite; but I ask my right hon. Friend to give us this small concession for a very important branch of the trade in this country.
I am quite certain my hon. Friend did not purposely try to drop me into the very dreadful ditch in which I would find myself if I accepted this Amendment. I have heard of the position of trying to step between Scylla and Charybdis, but if I accepted this proposal I should have to step between the publicans, who are a very well organised body, and the temperance party, who are also a very well organised body. I do not know if the Committee knows that this restriction on the grocer and the off-licence holder has been in existence since 1861, when Mr. Gladstone started grocers' licences about which the Temperance party had a good deal to say, and in regard to which I have made a good many speeches other than in the House of Commons. If anybody wants a smaller quantity than a quart bottle it can be obtained in a public-house. The inevitable effect of accepting this Amendment, which looks so innocent, would be an immediate demand on the part of the whole public-house trade for a reduction in their licence duty. It is quite clear that, if this proposal is to be the good one my hon. Friend suggests, in enabling people to buy less than a quart, the result will be, unless we are to assume that there is to be a large increase in the amount of spirit drinking in the country, that there is going to be a large change in the sale from the publican to the grocer. That, of course, would disturb altogether the arrangement which has existed for many years between the various sections of the licensed trade, and to accept this new Clause—I do not deal with the effect which it would have upon the drinking habits of the people, and the position which would arise in regard to the Temperance party throughout the country—would alter the whole position between the publican and the grocer. I could, if necessary, read a resolution which was sent to me a few days ago by the great Licensed Victuallers' organisation, protesting against this proposal. In these circumstances, I hope my hon. Friend will not press the Clause to a Division, for it is quite impossible for me to accept it.
In view of the statement made by the Financial Secretary, I beg to ask leave to withdraw.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Reduction of Licence Duty on certain liquor licences.)
The duties chargeable on the following excise liquor licences, that is to say, retailers' on-licences for spirits, beer, or wine, retailers' off-licences for spirits, beer, or wine, shall be reduced by fifty per cent.—[ Sir A. Holbrook. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
This Clause will, I hope, receive a little more sympathetic consideration from the right hon. Gentleman than the last one did. I want to appeal to the Chancellor of the Exchequer on behalf of the small licence-holders in the villages. They are now called upon to pay the full licence duty, although their houses are only open for half the period. Last year, when I moved this Clause, I was told that the licence-holders were doing just the same trade, although they had a shorter time in which to do it, but that is not the case with the houses for which I have been asked to intercede. I am referring to the village inn on a public highway. In the case of these houses, the bulk of their trade used to be from the passing traffic in the day-time, but now, owing to the houses being closed, the whole of that trade has gone, and they are very hardly hit by the present Regulations. Their trade has now been practically limited to the little village in which the house is situated. They lose all the through traffic of farmers, drovers, and motors passing in the day-time, and I appeal to the Chancellor of the Exchequer to consider their case.
My hon. and gallant Friend is moving this Clause because the small village inns are doing less trade than they did, but the Clause does not relate merely to village inns. It suggests a reduction of 50 per cent. in the licence duty in the case of retailers' on-licences for spirits, beer or wine, and retailers' off-licences for spirits, beer or wine. That is a very much larger order than is comprised in my hon. and gallant Friend's speech, and it would cost the country £2,000,000 a year to grant the concession asked for. My hon. and gallant Friend has not given the slightest evidence in support of the allegation that this particular class of publicans are doing much less trade than they were, such as would warrant the Government, were they so minded, in giving this concession. If my hon. and gallant Friend had brought me a whole series of broken-down and bankrupt publicans and presented them to me, or if he had produced their books, or produced statements or information from the brewers that they had not been able to pay for their beer, that would have been evidence, but he has done nothing except claim that farmers, going to market, and others do not go into the public-houses at the times when they are open, but go by them when they are shut, and it is exceedingly difficult for me to assess the difference that there may be. The information that I have is that, so far as the ordinary public-house trade is concerned, the people of the neighbourhood have already accustomed themselves to the new hours, and no real difficulty is being felt, nor, so far as I can gather, has any real loss taken place.
He is going to withdraw.
In the circumstances, in accordance with the advice given by the hon. Member for Dumbarton Burghs (Mr. Kirkwood), I would ask my hon. and gallant Friend if he will not withdraw the Clause.
11.0 P.M.
After the statement that the Financial Secretary has made, I will not press the Clause, but I should like to point out that the principle has already been conceded during the War period, for, when the houses were closed for one day in seven, the licence-holders were relieved of one-seventh of the licence duty. I maintain that when the licence is reduced to one-half a similar concession should be made, and I hope in future the Chancellor will give consideration to the point. I could give him many cases where great hardship has been suffered.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Deduction from Estates Duty, etc., in respect of 57 and 58 Vict., c. 30, Section 20.)
Where the Commissioners are satisfied that in a British possession to which Section twenty of the Finance Act, 1894 (57 & 58 Vict., c. 30) applies, duty is payable by reason of a death in respect of any property situate in such possession and passing on such death, they shall allow a sum equal to the amount of that duty to be deducted from the Estate Duty, legacy and succession duties payable in respect of that property on the same death.—[ Mr. A. M. Samuel. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
This Clause is exactly as it appears in a former Act of Parliament with the addition of the words "legacy and succession duties," As things now stand, if a person of English domicile dies he has to pay estate duty and legacy and succession duties in England on all properties which are subject to the law of the Province of Quebec. Montreal, which is the Capital of Quebec, is the centre of all the industrial and commercial activity in Canada and consequently it is the headquarters of the great companies. His executors and trustees cannot sell or deal with any of his property after it has paid legacy and succession duties until they have conformed with the Quebec Succession Duties Act, 1914. Under this Act no transfer of any Quebec property held by an Englishman domiciled in England is valid unless the Quebec estate, succession and legacy duties have been paid, and no life insurance taken out by an Englishman who has died in England can be validly paid by any Montreal company without a certificate of payment of duty. The result is that after you have paid 6 per cent. Estate Duty in England and 5 per cent. Legacy Duty the Quebec Provincial authorities will not allow you to deal with the property unless you pay 11 per cent. again to them.
The Act which I now seek to amend gives back, by reciprocal arrangement with the other Dominions, the Estate Duty, but it cannot give back to English testators and executors and trustees the Legacy and Succession Duty. The result is that, owing to the action of the Province of Quebec, any man who dies with property under the laws of Quebec has to pay double Legacy and Succession Duty. The Quebec life insurance companies get over that by breaking the law. I have a letter from Mr. Wood, of the Sun Life Insurance Company of Canada, who says the Provincial Treasurer has admitted the force of the argument I have outlined and has authorised the company to contine as in the past to pay policy moneys to extra Quebec policy holders regardless of legislation. I ask the Government to allow this Clause to be enacted, otherwise no prudent Englishman would ever dare to invest any money again in Quebec securities. We wish to invest money in Montreal. We desire to put as much money as we can at the disposal of Canada. This is very unfair, and it may happen that the whole intention of a will may be upset owing to the action of Quebec. I ask the Financial Secretary to give an assurance, if he cannot accept my Clause to include Legacy and Succession Duties, to take steps to revoke the Order under the Act of 1894, so far as it affects the Province of Quebec, so that a man of English domicile who dies may not be penalised by having to pay Legacy and Succession Duty twice over.
The Amendment undoubtedly deals with a difficulty and the proposal is one with which everybody must sympathise. My hon. Friend recognises that the Finance Act of 1894 did deal with Estate Duty. The Amendment on the Paper would make no material alteration of the law as far as it relates to the dual charge in the Dominions and the United Kingdom for Estate Duty. What he proposes is that Colonial duty, besides being capable of being deducted as against British Estate Duty, should be capable of being deducted as against Legacy and Succession Duty in the United Kingdom. Obviously, if reciprocity could be obtained. that might be a desirable proposal, but the inherent difficulty arises from the fact that the law of the Province of Quebec applies the principle of situation as the test of liability to taxation, whereas the British principle is that they are taxed according to domicile. The proposal would be a very unfair one as against the British revenue. It would be one-sided. It might avoid duality of charge, but it would be against the British revenue and in favour of the Quebec revenue in the case cited by my hon. Friend. The proposal is Dot one to be accepted now, because it does not secure that which is an integral factor in any scheme for avoiding duality of charge, namely, reciprocity. The way to approach the matter, and the way that will be considered by my right hon. Friend, is to see whether or not the Dominions could adopt the same principle upon which to impose this charge as is applied in our own English law. If that way of approach can be successfully explored, it will effect my hon. Friend's purpose, and on that assurance I hope he will withdraw his Amendment.
Before the Amendment is withdrawn, I should like to say that it is very undesirable that a British subject should be charged double duty on the same property, both in this country and in a Dominion. There must be some give and take in this matter so that only one duty will be charged upon the same property here and in the Dominions. Is not this a matter that ought to be brought before the Imperial Conference this year with a view to getting reciprocity, so that there could be legislation upon it next year?
I have corresponded with the Quebec authorities. It is a great hardship. I see the difficulty of the Government. The other course that might be taken would be to see whether it is not possible to revoke the advantage given to Quebec. The Province of Quebec is the only Legislature which inflicts this hardship upon English domiciled people. I hear a whisper from one hon. Member that he has some money to invest and that he proposes to invest it in Canada. I warn him, and I warn others whom my voice may reach, that if they invest any money subject to the laws of the Province of Quebec, they must be prepared for their heirs paying double Succession and Legacy Duty. In warning the public of that possibility, I shall have effected my object in no small degree. By leave of the Committee, I ask leave to with draw the Amendment.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Income Tax on consolidated pay.)
In the assessment to Income Tax of the consolidated pay of any person serving in His Majesty's Forces there shall be deducted the value of such of the allowances included in such consolidated pay as are not subject to Income Tax.—[ Lieut,-Colonel Courthope. ]
Brought up, and read the First time.
I beg to move That the Clause be read a Second time."
This Clause aims at removing a serious grievance. When duty takes a member of the naval or military forces away from his quarters he becomes entitled to certain allowances. These allowances are not subject to deductions for Income Tax, but there are a comparatively small number of officers, both naval and military, who draw, not the pay of their rank and these allowances, but what is known as consolidated pay, which includes these allowances as well as their pay. It is the practice of certain surveyors of taxes—I believe not all—to assess the whole of the consolidated pay to Income Tax. The purpose of my Clause is to insure to these officers who draw consolidated pay that they shall get their allowances without deduction of tax, exactly the same as they would be entitled to if these allowances were paid separately from their pay.
The point here is not quite so simple as my hon. and gallant Friend thinks it is. The position really is this. When an officer receives consolidated pay, the consolidation represents one of two things. It may, for instance, represent the cost of a charger, and the forage and shoeing of that charger; expenses which have necessarily been incurred by the officer in the performance of his duty. When that is the case, an allowance is made free of Income Tax in regard to that portion of the consolidated pay. It might, however, and very often does, include what one may call personal matters, such as food, fuel, and the like. These are personal portions, so to speak, of the officer's remuneration, exactly in the same way as a certain number of civilians are given a salary, plus an allowance for lodging accomodation. In that case, the civilian, has got to pay Income Tax, not merely on his salary, but on the money allowable-in respect of the lodging or the food which he may also receive.
Therefore, this is a somewhat difficult question. I have been going into it for some time past with my technical advisers, and we have decided to put the whole matter in a case before the Law Officers of the Crown, in order to get their opinion exactly who is right in this contention. If the opinion of the Law Officers is in-favour of the case advanced by my hon. and gallant Friend, I will let him know, and that will clear up the position. If, on the other hand, it is in favour of the view which, I confess, I hold, that there is a distinction between these two forms, of personal allowance and of matters necessarily incurred in attendance upon-duty, then the Income Tax will have to-continue to be paid. It will be a rather complicated case for the opinion of the Law Officers. I cannot ask the Attorney-General, who is very busy just now, to-give his opinion in the course of the next week or two, but I will ask him to give it as soon as he can.
In those circumstances, I ask leave to withdraw the Clause.
No.
Question, "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(As to deduction of Income Tax, Schedule A, from rent.)
The amount of tax deductible under Rule 1 or Rule 4 of No. VIII in Schedule A (which relate to the right of persons by whom tax is paid to recoupment in certain cases) in respect of any rent payable to a landlord, owner, or proprietor in respect of lands, tenements, hereditaments, or heritages by a tenant or occupier shall not exceed the amount of tax that would be deductible under the said Rule 1 if the tenant or occupier were a tenant-occupier and the landlord, owner, or proprietor were the landlord for the time being and the annual value of the lands, tenements, hereditaments, or heritages were an amount equal to the rent so payable and any deductions or allowances that would have been due to be made under The Income Tax Act, 1918, and any reduction of the assessment that would have been due to be made for the purposes of collection under Rule 7 of No. 5 in Schedule A had been duly made.—[ Lieut.-Colonel Courthope. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The object of this Clause may be explained briefly by an example. A tenant of premises from whom the Income Tax is primarily collected is entitled to deduct the Income Tax from the rent next payable up to the figure of the gross rent. It happens frequently, particularly in such a case as that of a market gardener, who may have glass houses erected by the tenant, or a factory where the tenant has installed machinery, that the landlord's assessment under Schedule A is increased. The consequence is that the landlord is deprived of his statutory right to an allowance for repairs. The purpose of this Clause is to secure to the landlord that the amount which the tenant may deduct from his rent in respect of Schedule A Income Tax shall be limited not by the gross amount of rent, but by the rent less the statutory allowance for repairs.
I have not often in the course of these Debates confessed myself beaten, but I am a little beaten with regard to this matter. This is a Clause which came before the Royal Commission. I understand that my hon. and gallant Friend has rather taken it from a Clause which was suggested by the Board of Inland Revenue to the Royal Commission in 1920. But since that time, particularly by the Act passed last year and the concessions made yesterday, the whole position of allowances for repairs has altered considerably and I am not at all sure that the acceptance of this Amendment would not remove a grievance from the shoulders of the landlord to those of the tenant. It is extaordinarily complicated. I have tried to understand what the effect of this Clause would be in all the cases that have been brought before me in the course of this Debate, and I say frankly that I cannot say what the effect would be, and I am not at all sure even if there is still some slight hardship, that the effect would not be merely to transfer it from one set of shoulders to another. In the circumstances I give my hon. and gallant Friend an under- taking that I will consider the matter between now and Report.
Motion and Clause, by leave, withdrawn.
NEW CLAUSE.—(Bequests to hospitals)
Legacy and succession duty shall not be leviable on testamentary bequests made to hospitals carried on in the public interest.—[ Captain Viscount Ednam. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
The concession is one which all those who are interested in the voluntary hospitals of the country feel very strongly should be conceded, and I have reason to believe that there are many members on both sides of the House who feel that this would be a reasonable concession. At this hour it is impossible to state my case. All I ask is that the Financial Secretary should receive a deputation between now and the Report stage from the British Hospitals Association and from King Edward's Hospital Fund, with a view of seeing whether anything can be done on the Report stage. I will put down the Clause again on the Report stage.
May I add my appeal to that of the noble Lord? These great institutions, which are doing such fine work, are languishing for want of help. Take one case with which I am very familiar. In 1911, thanks to the zeal of a former Member of this House, now Lord Hambledon, King's College Hospital was removed from the Strand to Denmark Hill. It is one of the finest institutions in the country, where the poorest member of the community can command medical skill that would have been beyond a King's ransom fifty years ago. It is languishing to-day for want of funds, and there are many institutions in similar condition throughout the country. At King's College Hospital there are six wards closed for want of funds. They represent 180 beds. There are a thousand people awaiting the ministrations of the hospital; they are getting worse and in all probability some will die before admission is possible. In this new Clause there is the chance of a little assistance which was recommended by the Cave Commission.
In this case a sentence is a speech. If the right hon. Gentleman can see his way to meet the appeal of the noble Lord, so far as we are concerned we would like to join in it.
Of course if an appeal is made to me by any of my colleagues to receive a deputation it would receive the utmost consideration, but when it is backed from all quarters of the House I should be indeed churlish not to receive the deputation. It is my right to tell the House that I have just received from Lord Hambledon a telegram on behalf of 100 London hosptals expressing the hope that the new Clause will be accepted. I am prepared to receive a deputation and I will make arrangements in the next day or two, to do so. Before I receive the deputation, it is right that I should point out that this is going to be a very expensive matter and, it may cost anything from £150,000 to £200,000 a year. [HON. MEMBERS: "That is nothing"] I ask hon. Members to wait. There is a further consideration. The Government, if this concession were granted to hospitals, would find it (very difficult indeed to refuse a similar concession to other charities, many of which are equally deserving. I think it right to tell the Committee of the difficulty which at the same time I shall be glad to receive the important deputation which my noble Friend has asked me to receive.
In view of the answer given by the right hon. Gentleman I beg leave to withdraw my Amendment. I hope the Committee will allow me, before doing so, to answer the two points made by the right hon. Gentleman. A question was put this afternoon as regards the cost of this concession and the right hon. Gentleman said no statistics were available. If he will look at the Hospital Year Book of this year he will find that the total legacies to hospitals in the year 1919–20 amounted to £750,000 and that includes Irish hospitals which do not now come into consideration, but does not include legacies to central administrative funds, such as the King Edward Fund, which average £50,000 a year. The whole cost of relief from this 10 per cent. duty would, therefore, only mean at the outside £80,000 a year. With regard to the second point, as to discrimination between hospitals and other charities, I would answer that the Government have already discriminated in setting up the Cave Commission in 1920 and making a grant of £500,000 in that year. Therefore, there cannot be any difficulty in making this further discrimination. I once again appeal to hon. Members in all parts of the House for their sympathy on behalf of this proposal.
I wish to add my observations to what has already been said in support of this proposal. I am on the committee of the King's College Hospital and that hospital finds itself in very great difficulty. In view of the statement of the Financial Secretary, I do not propose to enter into a discussion, but I ask the right hon. Gentleman whether he cannot see his way to place legacies for hospitals on the same footing as legacies in the direct line from parents to children. Such legacies pay, in one case 1 per cent., and in another case 5 per cent., but the hospitals are subject to a legacy duty of 10 per cent., the percentage applicable to legacies to strangers. I suggest it might be worth while between now and the time of receiving the deputation to see whether, if the whole remission cannot be granted, it would not be possible to place the hospitals on the 5 per cent. or 1 per cent, basis.
I think this is a case in which the Committee should pass the Amendment and take the responsibilty off the shoulders of the Financial Secretary. It is a small concession but it will be of great service to the hospital. The London Hospital has 100 beds vacant, which cannot be used because the necessary financial resources are not available and there are, consequently, 100 patients waiting to go in. I think the Committee should object to the withdrawal of the Amendment and should pass the proposed new Clause.
Question, "That the Clause be read a Second time," put, and negatived.
The next Amendment I will call is the new Clause standing in the name of the hon. Member for Down (Mr. D. Reid)—(" Amendment of Section 20 of Finance (1909–10) Act, 1910.")
On a point of Order. I have a new Clause on the Paper, with the marginal heading ( "Limitation of the application of the funds of the Ministry of Transport" ), and I submit that it is in order, because I propose to provide that the Minister of Transport should not spend his income on new construction of roads, but should use the motor car taxes, which are yearly taxes, on upkeep and maintenance. The result of passing this Clause would be that it would make a reduction of taxes and a reduction of the calls on the taxpayer. It cannot be right that yearly taxes should be used for capital expenditure on making new roads. They ought to be used in the maintenance of old roads.
The hon. and learned Member is giving an argument on the merits of the Clause.
I did not intend to argue the case. What I wanted to put to you was this: that if my new Clause were carried, by limiting the power of using the yearly taxes on the construction of new roads, the taxes would be diminished, and there would be a relief to the taxpayer. I submit that the Clause, therefore, is in order.
I do not say that it does impose a charge on the taxpayer, but I say that it is outside the scope of the Bill. If it were in order to move this Clause, it would be equally in order to move that educational grants should not be applied to secondary schools, or that other moneys assigned to some purpose by Statute should be diverted to the relief of local taxation. In my opinion, the Clause is clearly outside the scope of the Bill, and even if there were any doubt about that, I do not think, at this hour of the night, under the circumstances in which we are working, I should be entitled to select it.
NEW CLAUSE.—(Amendment of s. 20 of Finance (1909–10) Act, 1910.)
"Section twenty of The Finance (1909–10) Act, 1910 (which imposes mineral rights duty), shall be amended by adding at the end of Sub-section (2) the following words:
Provided also that in any case in which the proprietor of minerals included in a mining lease shall be liable to make any payment to a third party, in respect of or in connection with the minerals for which the rent is paid, whether for the right to let down the surface or otherwise, he shall be entitled to deduct the sums for which he is to liable from the rent paid by the working lessee, and the net rent after making such deduction shall be the rental value."——[ Mr. D. Reid. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
It is provided by Section 20 of the Act of 1910 that the mineral rights duty shall, in the case of Mines, be levied on the' rental value; and the rental value is defined to be the amount of rent paid by the working lessee in the last working year in respect of that right. Deductions are allowable, but the power of deduction is limited, and there are a number of cases where extra relief might be given. Under the circumstances it seems unfair to demand mineral rights duty on a sum of money which never comes into the hands, or goes into the pocket, of the proprietor of the Minerals. I hope my right hon. Friend will see his way to make this concession.
I am afraid that the acceptance of this Clause would land us in difficulties. The Mineral Rights Duty is payable on the rent of the right to work the minerals which the landlord receives. Under this new Clause, if the mineral owner has made a payment of a lump sum, say of £1,000, to the owner of the surface rights for the right to work the minerals underneath the land, the whole sum might be deducted in a particular year. Clearly that is impossible. I am not prepared to say what the effect would be if the owner paid a yearly sum.
Practically, in all these cases, it is not the payment of a lump sum, but so much a ton or so much an acre where the coal is worked. The payment to the surface owner would be in the same year as he gets the minerals.
That is not my information. This new Clause would enable capital sums to be charged against this duty, and that cannot be done at the present time. In these circumstances I cannot accept this proposal.
I ask leave to withdraw my Motion.
Motion and Clause, by leave, withdrawn
NEW CLAUSE.—(Relief in respect of certain insurance polices in Scotland.)
A sinking fund or capital redemption policy issued by a registered insurance com- pany in Scotland shall be treated for Inland Revenue purposes under the same category as a similar policy issued by a registered insurance company in England.—[ Major McKenzie Wood. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
This is a small Amendment in order to remove a slight injustice to Scotland. In the case of a Registered insurance company in Scotland the stamp duty in Scotland might be £31, whereas a similar policy in an English insurance company has only to be stamped with sixpence. That ie unfair. The right hon. Gentleman has not accepted a single new Clause to-day, and here is an opportunity for him to do so.
I am sure that nobody would be more indignant than the mover of this new Clause if a proposal were made to bring Scottish laws into conformity with the English laws. I understand that the people of Scotland are proud of having a distinct system of laws of their own. This question has arisen in consequence of a certain interpretation of the law. The proposal now made by the hon. and gallant Member would require the Scottish Judges to apply the English system and that would be repugnant, I am sure, to the Scottish Members. For these reasons it is impossible to accept this proposal.
Question: "That the Clause be read a Second time," put, and negatived.
NEW CLAUSE.—(Repeal of s. 4 of Finance (1909–10) Act, 1910.)
As from the commencement of this Act such parts of Section four of the Finance (1909–10) Act, 1910, as are not repealed by Section fifty-seven of the Finance Act, 1920, shall be repealed.—[ Sir William Bull. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
In five minutes I will try to develop my case. This is a tax which does not go into the pockets of the Government. I am asking for the remittance of a tax which produces £500,000 a year, which is extracted from the pockets of the people who transfer land and property in this country.
On a point of Order. Do I understand that you, Mr. Hope, did not collect the voices which challenged a Division when you declared the last Amendment negatived? The voices were quite distinct and they were sufficiently numerous to be heard.
I collected them, but they were very incoherent.
As you say, Mr. Chairman, that the sounds were incoherent, I want to ask if they were any different from the sounds which you accepted when collecting the voices on other occasions when Divisions were taken?
That is not a point of Order.
On a further point of Order. Can you explain to the Committee the difference between those sounds?
The hon. Member really must not carry on an argument upon this point.
On a point of Order——
The hon. Member must see that he cannot continue to raise further points of Order. It is apparent that his point is not a very serious one.
On a point of Order——
The hon. Member must understand that I am bound to observe the rules, and I must ask him to resume his seat.
But I have a point of Order to raise.
The hon. Member has put a number of points of Order already, and they are not serious points.
On a point of Order—[HON. MEMBERS: "Name!"]
I must now call upon the hon. Member to resume his seat. If he take serious exception to my ruling, he must adopt the usual course, and put a Motion on the Paper. I must now ask him to resume his seat.
I beg to give notice that I shall put down on the Paper such a Motion. I think you, Mr. Chairman, have been distinctly unfair to hon. Members on these benches.
I would draw the attention of the Committee for three minutes. I am asking the remission of a tax of £500,000 a year which does not go into the pockets of the Government but is extracted from the people who transfer land and property in this country. Under the Finance Act, 1910, certain schemes were set up whereby particulars had to be delivered of every transfer of land and at the present time there is an official Department in Somerset House which costs £15,000 a year which does not benefit the State one iota. These forms have to be filled up for every transfer of land. It is a form of four pages, with numerous pages which are very difficult for laymen to answer and consequently they have to go to their lawyers. Strange to say, the lawyer of this country, although they reap a big benefit from this, are unanimously of opinion that this form is absolutely useless and valueless. Four or five years after particulars have been filed they are of no value whatever as to the value of property. Therefore I confidently appeal to a Conservative Government to do away with that anomaly.
This is a tax on all the landed gentry and on all who own property in this country. I have had experience of cases where the particulars so entered have been absolutely misleading. The other day a lady insisted on me buying for her a house in the West End of London. It was a house with a short lease, but she insisted on giving a large sum of money for it. She died shortly afterwards. The property was then valued, and instead of being represented by thousands of pounds it was represented by hundreds of pounds. Consequently, when the figures were taken to Somerset House, they objected to the low valuation put upon it, and there was considerable trouble about it, although, as a matter of fact, that was the real value of the house at that time. The form I had to fill in was, after three years, absolutely valueless for the purpose for which it was made. Therefore I confidently appeal to a Conservative Government to do away with this tax on the people of England which does not benefit the State.
I would like to reinforce what has been said by my right hon. Friend as to the desirability of abolishing this tax on the transfer of land. I am sure the whole Committee desire to see the transfer of land and property made as cheap, simple and easy as possible. If a piece of land or a house or property of any description changes hands, this long list of particulars has to be delivered and filed at Somerset House. This is a remnant of the machinery which was created to collect the Increment Value Duty. The duty was abolished in 1920, but for some reason or another this provision, which has served no useful purpose but has created a mass of figures that are not only valueless but become very quickly deceptive, has remained. I quite understand my right hon. Friend the Financial Secretary to the Treasury is in a difficulty. Here is a question on which there is difference of opinion. It is a matter upon which a large number of hon. Members on this side of the Committee feel very strongly indeed. My right hon. Friend has not been long in his present position and I know it is a considerable responsibility for him to take, but I beg him not to reject this proposal. If he cannot accept it now, will he consider it before Report, because we do not want to have to divide against the Government? The Government have met both sides of the Committee on very difficult questions on this Bill very fairly, but if he cannot hold out any hope that this can be considered, we shall be obliged to divide.
In this matter I am in a very decided difficulty personally. I think I voted in favour of this Amendment last year and I have expressed from time to time rather strong views in regard to this particular infliction on the transfer of land. But my right hon. Friend has put his finger on the spot of my difficulty. Holding, as I do, views rather in accordance -with those of the Mover of the Clause it would foe highly improper for me, having only been in office for about three weeks, to attempt to make such a great alteration as this, which would have a very real effect upon the activities of the Land Valuation Department. That Department is undoubtedly doing a very considerable work and its activities have been considered within the last few years by the Committee on National Expenditure, of which my right hon. Friend the Member for the City of London (Sir F. Banbury) was Chairman. They came to the conclusion that it certainly was impossible to abolish the work of the Valuation Department. If these returns are not made, it will certainly very much alter the work of the Department and it would be improper for me to take advantage of my position, and by a stroke of the pen, so to speak, translate the views I hold into action. There is to-day sitting in the Treasury a Departmental Committee to consider a Report which was made by another Committee on the whole question of land valuation under the Chairmanship of Sir Howard Frank, who is a very eminent valuer. I am not saying his report is either favorable or unfavorable to the Land Valuation Department, but it is a Report with which the Treasury has to reckon and it will be referred to a Treasury Committee. They are considering the whole future of the Land Valuation Department, and I propose to refer this Amendment to them in order that they may consider it. I cannot hold out any hope of having a decision before the Report Stage, but I will very fully consider the whole matter between now and this time next year, and then, if I still hold office, I can give a much more definite opinion.
My recollection is that the Committee of which I was Chairman made a Report as to the duties the officials should perform, and we said nothing whatever about a valuation being made whenever a house changes hands or is let for more than 14 years.
12 M.
I hope the Committee will take no such advice as is suggested in this Amendment. The Mover has but one object in view, which is to close up the source of obtaining information. Somerset House is the only source from which information can be obtained respecting share capital, profits, directors, etc. I can quite understand hon. Members opposite wanting to close this source of information, but we do not want it closed at all. They want to get in the thin edge of the wedge. If this Amendment be passed, the whole thing will be closed up by next year. Let me tell the Committee what has already happened. Up to 1916 the Commissioners of Inland Revenue used to make an annual statement of mining profits. Following 1916, that information was taken out, and it has never been put into the Report again from that day to this.
On a point of Order. What relationship is there between the arguments the hon. Member is using and the Amendment?
I presume these particulars are among those which, if the Amendment were carried, would not have to be furnished in future.
The hon. Member is under a misapprehension. All this Amendment does is to cease to require that, on the sale and transfer or lease of land or houses, a lot of particulars shall be sent to Somerset House at the expense of the vendor and the purchaser. The points he has raised are not included in the Amendment and have nothing to do with it.
Information on the very points the right hon. Gentleman raises can be obtained at Somerset House on payment of a shilling. I have been there and I am going again, and I object to any source of information being closed.
Perhaps the Financial Secretary can elucidate the matter. I am under the impression that this only relates to particulars to be delivered on a transaction for the sale or lease of land or houses, and that these particulars as to mining profits and so on will not be affected in any way.
If that be correct, it alters my point, but I have got this into my mind. [ Laughter. ]The other side of the Committee can laugh, because they own the wealth and property of the nation. Once this point is got in as a starting point, the matter will take the same course exactly in time that the other matter took in connection with the mining industry.
This cannot be relevant to the Amendment. The Amendment refers to one transaction, and not to mining profits or any other profits.
Can I take it that the Mover of the Amendment means that, and that only?
Yes, absolutely.
I am pleased that the Financial Secretary is not going to accept this Amendment. I agree that no taxation should be levied upon the rapid transfer of land, because in so doing it is putting a premium upon those who are anxious to withhold land from use. Everything should be done to facilitate the transfer of property for use as quickly as possible. I intervene because I am afraid, from what the Financial Secretary said, that old friendship for a reactionary view may in the next 12 months cause him to go against the Valuation Department. I warn hon. Members opposite—I hope they will take it in as friendly a manner as possible—that we on these benches will not allow any hand to lay an irreligious touch upon the valuation of land at Somerset House. Although the valuation is not up to date it can be brought up to date within six months if power is given to the Department. We look upon the valuation at Somerset House of the value of the land in this country as the Domesday Book which we shall use when we come to power. I can understand the right hon. Member for the City of London (Sir F. Banbury), who has always been an advocate for economy, being anxious to scrap the Valuation Department. I have always wondered that others on his side have not been more anxious to destroy the Valuation Department, because the information collected by the Department will be used for the destruction of the party which they represent in this House.
I intervened to say to the more astute Members on the other side that some sort of easy attack may be made that will cut the ground from under the Valuation Department, and that we will not tolerate that for a moment, because the valuation has cost the country far too much—[HON. MEMBERS: "Hear, hear!"]—I note the hilarity of hon. Members. I was going to say that the
valuation has cost the country far too much and it would have cost the country nothing if Lloyd George had taken the advice of some of us—[ Interruption. ] I see that the Chairman is about to call me to order. I have made my point. To sum up, I say that the valuation is something which we, on this side, shall watch with great care. We shall do all in our power to bring it up to date, and at the same time we shall seek to ensure that anything that stands in the way of the easy transfer of land or property for public use is removed at the earliest possible moment.
proceeded to put the Question.
rose ——
On a point of Order. I think, Mr. Hope, you were collecting the voices. I put it to you that the right hon. Gentleman is too late now to intervene.
The process of collecting the voices arose, but the right hon. Gentleman intruded his personality just in time.
In view of what the Financial Secretary to the Treasury has said, I hope my right hon. Friend will not press this Clause to a Division. I only wish to add that, after what has been said opposite, I think my right hon. Friend will understand the necessity of considering this again, if possible, before the Report stage.
I beg to ask leave to withdraw the Clause.
No!
Question put, "That the Clause be read a Second time."
The Committee divided: Ayes, 195; Noes, 126.
Division No. 233.] AYES [12.15 a.m. Agg-Gardner, Sir James Tynte Blundell, F. N. Campion, Lieut.-Colonel W. R. Ainsworth, Captain Charles Bowyer, Capt. G. E. W. Cautley, Henry Strother Alexander, Col. M. (Southwark) Brass, Captain W. Cayzer, Sir C. (Chester, City) Allen, Lieut.-Col. Sir William James Brassey, Sir Leonard Cecil, Rt. Hon. Sir Evelyn (Aston) Ashley, Lt.-Col. Wilfrid W. Briggs, Harold Cecil, Rt. Hon. Lord H. (Ox. Univ.) Astor, J. J. (Kent, Dover) Brown, Brig.-Gen. Clifton (Newbury) Churchman, Sir Arthur Banbury, Rt. Hon. Sir Frederick G. Brown, J. W. (Middlesbrough, E.) Clarry, Reginald George Barnett, Major Richard W. Bruton, Sir James Coates, Lt.-Col. Norman Barrie, Sir Charles Coupar (Banff) Buckingham, Sir H. Cobb, Sir Cyril Bell, Lieut.-Col. W. C. H (Devizes) Burney, Com. (Middx., Uxbridge) Cockerill, Brigadier-General G. K. Berry, Sir George Butler, H. M. (Leeds, North) Colfox, Major Wm. Phillips Birchall, Major J. Dearman Butt, Sir Alfred Colvin, Brig.-General Richard Beale Bird, Sir William B. M. (Chichester) Cadogan, Major Edward Conway, Sir W. Martin Cope, Major William Horne, Sir R. S. (Glasgow, Hillhead) Reid, D. D. (County Down) Cotts, Sir William Dingwall Mitchell Houfton, John Plowright Remnant, Sir James Courthope, Lieut.-Col. George L. Howard, Capt. D. (Cumberland, N.) Rentoul, G. S. Craig, Captain C. C. (Antrim, South) Howard-Bury, Lieut.-Col. C. K. Rhodes, Lieut.-Col. J. P. Crook, C. W. (East Ham, North) Hudson, Capt. A. Richardson, Sir Alex. (Gravesend) Crooke, J. Smedley (Deritend) Hutchison, G. A. C. (Midlothian, N.) Richardson, Lt.-Col. Sir P. (Chertsey) Curzon, Captain Viscount Jarrett, G. W. S. Roberts, Samuel (Hereford, Hereford) Davidson, Major-General Sir J. H. Jenkins, W. A. (Brecon and Radnor) Robertson-Despencer, Major (Isigtn, W) Davies, Thomas (Cirencester) Jodrell, Sir Neville Paul Rogerson, Capt. J. E. Davison, sir W. H. (Kensington, S.) King, Captain Henry Douglas Rose, Frank H. Doyle, N. Grattan Kinloch-Cooke, Sir Clement Rothschild, Lionel de Dudgeon, Major C. R. Lamb, J. Q. Roundell, Colonel R. F. Du Pre, Colonel William Baring Lane-Fox, Lieut.-Colonel G. R. Ruggles-Brise, Major E. Edmondson, Major A. J. Leigh, Sir John (Clapham) Russell, Alexander West- (Tynemouth) Ednam, Viscount Lorimer, H. D. Russell-Wells, Sir Sydney Ellis, R. G. Lort-Willlams, J. Sanderson, Sir Frank B. England, Lieut.-Colonel A. Lougher, L. Sandon, Lord Erskine, Lord (Weston-super-Mare) Loyd, Arthur Thomas (Abingdon) Sassoon, Sir Philip Albert Gustave D. Erskine-Bolst, Captain C. Lumley, L. R. Shepperson, E. W. Falcon, Captain Michael Lynn, R. J. Simpson-Hinchcliffe, W. A. Falle, Major Sir Bertram Godfray Macdonald, Sir Murdoch (Inverness) Smith, Sir Harold (Wavertree) Flanagan, W. H. Macnaghten, Hon. Sir Malcolm Somerville, A. A. (Windsor) Forestier-Walker, L. Maddocks, Henry Somerville, Daniel (Barrow-in-Furness) Foxcroft, Captain Charles Talbot Malone, Major P. B. (Tottenham, S.) Stanley, Lord Fraser, Major Sir Keith Mason, Lieut.-Col. C. K. Steel, Major S. Strang Fremantle, Lieut.-Colonel Francis F. Milne, J. S. Wardlaw Stockton, Sir Edwin Forsyth Furness, G. J. Moore, Major-General Sir Newton J. Sueter, Rear-Admiral Murray Fraser Galbraith, J. F. W. Moore-Brabazon, Lieut.-Col. J. T. C. Sugden, Sir Wilfrid H. Gates, Percy Moreing, Captain Algernon H. Terrell, Captain R. (Oxford, Henley) Gibbs, Colonel George Abraham Morrison, Hugh (Wilts, Salisbury) Thorpe, Captain John Henry Gilmour, Lt.-Col. Rt. Hon. Sir John Morrison-Bell, Major A. C. (Honiton) Titchfield, Marquess of Gould, James C. Murchison, C. K. Tryon, Rt. Hon. George Clement Greene, Lt.-Col. Sir W. (Hack'y, N.) Nall, Major Joseph Turton, Edmund Russborough Greenwood, William (Stockport) Nesbitt, Robert C. Ward, Col. L. (Kingston-upon-Hull) Grenfell, Edward C. (City of London) Newman, Sir R. H. S. D. L. (Exeter) Waring, Major Walter Guinness, Lieut.-Col. Hon. W. E. Newson, Sir Percy Wilson Watson, Capt. J. (Stockton-on-Tees) Gwynne, Rupert S. Nicholson, William G. (Petersfield) Watts, Dr. T. (Man., Withington) Hacking, Captain Douglas H. Norton-Griffiths, Lieut.-Col. Sir John Wells, S. R. Hall, Lieut.-Col. Sir F. (Dulwich) O'Neill, Rt. Hon. Hugh Weston, Colonel John Wakefield Halstead, Major D. Ormsby-Gore, Hon. William Wheler, Col. Granville C. H. Hamilton, Sir George C. (Altrincham) Paget, T. G. White, Lt.-Col. G. D. (Southport) Hannon, Patrick Joseph Henry Parker, Owen (Kettering) Windsor-Clive, Lieut.-Colonel George Harmsworth, Hon. E. C. (Kent) Pease, William Edwin Winterton, Earl Harrison, F. C. Penny, Frederick George Wise, Frederick Henderson, Sir T. (Roxburgh) Percy, Lord Eustace (Hastings) Wolmer, Viscount Herbert, S. (Scarborough) Perkins, Colonel E. K. Wood, Maj. Sir S. Hill- (High Peak) Hewett, Sir J. P. Peto, Basil E. Woodcock, Colonel H. C. Hilder, Lieut.-Colonel Frank Pollock, Rt. Hon. Sir Ernest Murray Yate, Colonel Sir Charles Edward Hiley, Sir Ernest Privett, F. J. Yerburgh, R. D. T. Hohler, Gerald Fitzroy Rae, Sir Henry N. Holbrook, Sir Arthur Richard Raeburn, Sir William H. TELLERS FOR THE AYES .—Mr. Pretyman and Sir William Bull..—Mr. Pretyman and Sir William Bull. Hood, Sir Joseph Raine, W. Hopkins, John W. W. Rawson, Lieut.-Com. A. C. Hopkinson, A. (Lancaster, Mossley)
NOES. Adams, D. Gray, Frank (Oxford) Jones, T. I. Mardy (Pontypridd) Adamson, Rt. Hon. William Greenall, T. Jowett, F. W. (Bradford, East) Adamson, W. M. (Staff., Cannock) Grenfell, D. R. (Glamorgan) Jowitt, W. A. (The Hartlepools) Alexander, A. V. (Sheffield, Hillsbro') Groves, T. Kenworthy, Lieut.-Commander J. M. Ammon, Charles George Grundy, T. W. Kirkwood, D. Barker, G. (Monmouth, Abertillery) Guest, Hon. C. H. (Bristol, N.) Lawson, John James Bonwick, A. Hall, F. (York, W. R., Normanton) Leach, W. Bowerman, Rt. Hon. Charles W. Hall, G. H. (Merthyr Tydvil) Lee, F. Briant, Frank Hamilton, Sir R. (Orkney & Shetland) Lees-Smith, H. B. (Keighley) Bromfield, William Harbord, Arthur Lunn, William Brown, James (Ayr and Bute) Hardie, George D. MacDonald, J. R. (Aberavon) Buchanan, G. Harris, Percy A. McLaren, Andrew Burnie, Major J. (Bootle) Hartshorn, Vernon Maclean, Neil (Glasgow, Govan) Butler, J. R. M. (Cambridge Univ.) Hay, Captain J. P. (Cathcart) Millar, J. D. Buxton, Charles (Accrington) Hayday, Arthur Morris, Harold Buxton, Noel (Norfolk, North) Hayes, John Henry (Edge Hill) Morrison, R. C. (Tottenham, N.) Chappie, W. A. Herriotts, J. Mosley, Oswald Collins, Sir Godfrey (Greenock) Hill, A. Murnin, H. Darbishire, C. W. Hinds, John Murray, John (Leeds, West) Davies, Rhys John (Westhoughton) Hirst, G. H. O'Grady, Captain James Davison, J. E. (Smethwick) Hodge, Lieut.-Col. J. P. (Preston) Oliver, George Harold Ede, James Chuter Hutchison, Sir R. (Kirkcaldy) Oman, Sir Charles William C. Edwards, C. (Monmouth, Bedwellty) Jenkins, W. (Glamorgan, Neath) Ormsby-Gore, Hon. William Emlyn-Jones, J. E. (Dorset, N.) John, William (Rhondda, West) Paling, W. Entwistle, Major C. F. Johnston, Thomas (Stirling) Parker, H. (Hanley) Evans, Ernest (Cardigan) Johnstone, Harcourt (Willesden, East) Parkinson, John Allen (Wigan) Fairbairn, R. R. Jones, Henry Haydn (Merioneth) Parry, Lieut.-Colonel Thomas Henry Falconer, J. Jones, Morgan (Caerphilly) Ponsonby, Arthur Graham, D. M. (Lanark, Hamilton) Jones, R. T. (Carnarvon) Potts, John S. Pringle, W. M. R. Shaw, Thomas (Preston) Watts-Morgan, Lt.-Col. D. (Rhondda) Rees, Sir Beddoe Short, Alfred (Wednesbury) Welsh, J. C. Richards, R. Sitch, Charles H. Westwood, J. Richardson, R. (Houghton-le-Spring) Smith, T. (Pontefract) Wheatley, J. Riley, Ben Snell, Harry White, H. G. (Birkenhead, E.) Ritson, J. Stephen, Campbell Whiteley, W. Roberts, C. H. (Derby) Sturrock, J. Leng Williams, T. (York, Don Valley) Roberts, Frederick O. (W. Bromwich) Sullivan, J. Wood, Major M. M. (Aberdeen, C.) Robinson, W. C. (York, Elland) Thomson, T. (Middlesbrough, West) Young, Robert (Lancaster, Newton) Royce, William Stapleton Tout, W. J. Saklatvala, S. Trevelyan, C. P. TELLERS FOR THE NOES. —Mr. Phillipps and Captain Wedg-Wood Benn.—Mr. Phillipps and Captain Wedg-Wood Benn. Salter, Dr. A. Turner, Ben Sexton, James Walsh, Stephen (Lancaster, Ince) Shakespeare, G. H. Watson, W. M. (Dunfermilne)
rose ——
The Question I have to put is "That the Clause be added to the Bill."
I wish to move an Amendment to the Clause.
The hon. Gentleman is too late. I have put the question. "That the Clause be added to the Bill."
On a point of Order. I was watching very closely. Directly you rose in your place, the Financial Secretary to the Treasury was standing at the Table, and as soon as he sat down I rose to catch your eye, in order to move the Amendment, which I had drafted before you rose to put the Question. With your permission, I will move it.
On a point of Order. Is it in order, after you have put a Question, for any hon. Member to contest your ruling?
Possibly I was myself to blame in this instance, because I had forgotten for a moment that it was necessary to put the Question "That the Clause be added to the Bill." Then some confusion was caused by the Financial Secretary getting up, and I can quite understand matters being somewhat irregular. There being some doubt, I feel bound to allow the Amendment to be moved.
I beg to move, as an Amendment to the proposed Clause, to leave out the words "commencement of this Act," and to insert instead thereof the words, "first day of January, nineteen hundred and twenty-four."
There was an understanding that the Committee stage of this Bill would come to an end at 12 o'clock to-night. During the last three or four hours hardly a single Member from this side of the Committee has spoken. We have not endeavoured to delay the passage of this Bill, but have endeavoured to carry out to the letter, and certainly in the spirit, the bargain which was made. The Committee has been working at high pressure during the last few days and this particular new Clause was sprung upon the Committee, and I think hon. Members were not fully seized of the Question which was put from the Chair a few minutes ago. I think it is through a misunderstanding of the Question which was put from the Chair that the Committee now find themselves at half past 12 o'clock debating a most vital question and one which will raise passions in every town throughout the country.
Is the hon. Gentleman in order in trying to reverse a decision of the Committee?
The hon. Gentleman is getting a little wide of the point, but he is quite in order in moving the Amendment.
As the Committee has decided on a question of great importance, I am trying to draw their attention to the far-reaching effects of that decision. Directly the question of land values and of valuation of land is raised, it arouses passion in every constituency in the country.
I must point out to the hon. Member that his Amendment is to substitute "the first of January nineteen hundred and twenty-four" for "the commencement of this Act." It seems to me that the difference between those two dates is the only question which arises.
My object in making that remark was to point out that by the carrying of this Amendment the Government will have time during the intervening months to review the situation. The Financial Secretary, a few minutes ago, stated that the Government would consider the matter between now and the Report stage, and I move the Amendment in order that there may be an opportunity of reconsidering the matter.
I assume the hon. Member who has moved this Amendment is prepared to allow the Debate to conclude at once. That being so, I would appeal to my hon. Friends to accept this Amendment. [HON. MEMBERS: "No!"] May I explain that we have just passed a new Clause which cuts down the work of a Department of the Government as from this moment. Hon. Members will realise that alterations will have to be made and arrangements will have to be made for this, and I do not think it is asking too much that we should accept the proposal made from the Front Opposition Bench that this new Clause should come into force as from 1st January next year. I will accept that suggestion very largely in order that the friendly relations which have characterieed this Debate may continue.
I quite understand the point raised by my right hon. Friend. I hope the Committee will accept that suggestion. I am perfectly certain there is no intention of going back on the decision of the Committee. The right hon. Gentleman merely wants time for the Department to adjust itself to the changed conditions.
I hardly think it was necessary for my hon. Friend the Member for Greenock (Sir G. Collins) to move this Amendment for the purpose of relieving the Government from the embarrassment in which they have placed themselves by the somewhat sharp practice in which they have engaged. I will make good my case. There is no doubt that there was an arrangement between the three parties in this House to bring the discussion on the Committee stage to a conclusion to-night, and a part of that undertaking was that there was to be no exceptional change made as the result of the discussions on these Amendments. [HON. MEMBERS: "No!"] Oh, yes. Otherwise, certainly on this side of the House, we would never have assented to have the Division taken on that Clause. I do not think the right hon. Gentleman opposite is quite entitled to the triumph he has won. He is in a different position from the Government. I do not think the Prime Minister can feel that he has been playing the game. [HON. MEMBERS: "Oh!"]
I must ask the hon. Member to confine himself to the very narrow Amendment which is before the Committee.
I am dealing with the point whether the acceptance of this Amendment puts the Government right with the Committee. The Financial Secretary accepted the Amendment by way of making the transition easier and satisfying the position, and if I may point it out, in order that the discussion might come to an end in an agreeable frame of mind. That was the reason he put forward for accepting this Amendment. It was not on the merits of the case that he accepted the Amendment. He accepted it by way of doing something to get over the effect of the action of the Government. The Financial Secretary to the Treasury, in the first instance, resisted the new Clause. On the faith of that resistance there was no discussion on the merits of what was being done. The Committee had no opportunity of really entering into the merits of the whole effect of the acceptance of this Clause. It was on the faith of the understanding made with the Financial Secretary—I was a party to that understanding—and hon. Members who are objecting to what I say do not know what happened. The Noble Lord the Lord Privy Seal need not shake his head. He was no party to it.
We must get rid of this Amendment before the hon. Member can raise these matters.
In the circumstances, I beg to move, "That the Chairman do report Progress, and ask leave to sit again."
It is a question of good faith, and if that has not been observed, I consder it a serious matter.
We have an Amendment before us at present. We must get rid of the Question before the Committee. I cannot accept the hon. Member's Motion before the Amendment has been disposed of.
The Amendment I moved I drafted very rapidly, and I beg leave to withdraw it.
No.
Amendment to proposed new Clause negatived.
Question proposed, "That the Clause be added to the Bill."
I beg to move, "That the Chairman do report Progress, and ask leave to sit again."
While the last question was under discussion I desired to move to ask leave to report Progress. The grounds for that Motion have been greatly strengthened since I then endeavoured to move it. The obvious confusion into which the Committee was thrown by the last Amendment and the doubt and perplexity which appear in all quarters of the Committee show that the Committee is not fully aware of the consequences of the decision which has been taken. That is one reason why I think that Progress should be reported and that there should be an opportunity for further reflection, so that the Committee may be fully aware of the consequences of what has been done. But I have a still stronger reason. When the agreement was made to which all parties in this House were parties—I am using the word in different senses—there was a clear understanding that at the later stage of this Debate no serious Change in the law would take place, and it was in accordance with that understanding that the Financial Secretary declined to accept the new Clause. In face of that declaration there was no serious attempt to debate the question. Except for a speech by my hon. Friend the Member for Burslem (Mr. MacLaren) there was no discussion of the merits of the question from this side of the Committee. The understanding was that when the last Clause was taken at 12 o'clock proceedings on the Committee stage were to come to an end. That is a decision we have loyally accepted. We have endeavoured to work to that decision throughout the whole of the day. There were many other Amendments that might have been prolonged, and this new Clause might have been excluded altogether. There were many important questions on Income Tax which we did not discuss when, with a little extra dis- cussion, this Clause might never have been reached. It was solely to give hon. Members opposite the opportunity of raising questions in which they were interested and of pressing their views on the Government that we did not discuss these questions. Hon. Members opposite should at least show some signs of the good feeling that exists between parties in the House.
If such proceedings occur on another occasion, there is no chance of any agreement being made between the parties in this House and the good feeling that exists between parties will come to an end. I am quite sure the hon. Gentlemen on the Front Bench who represent the official Opposition will agree with the view I am putting. Had the hon. Member for Central Newcastle (Mr. Trevelyan) been present to-night I am sure he would likewise have agreed. I am sure the hon. Member for West Edinburgh (Mr. Vivian Phillipps)—who is the Chief Whip of our party—holds the view I am putting. It was with very great reluctance that I myself agreed to this bargain because of the difficulties I foresaw in carrying it out. I do not think the right hon. Gentleman for a moment anticipated that this advantage would have been made of the agreement. If this new Clause has been moved it has been moved solely by the indulgence of the Opposition. [HON. MEMBERS: "Wrong!"] I think I have established that. The Patronage Secretary has admitted that throughout the whole of the discussions this afternoon we have refrained practically from any lengthened Debate. Had we insisted on even a reasonable amount of Debate on these questions, this new Clause could not have been reached. In these circumstances I think it is making an unfair use of an agreement which was made, an agreement which on r.his side of the Committee has been honourably observed. It is simply like taking a snap Division. In the circumstances, I am sure the Prime Minister will not take the view that the agreement is being fairly carried out.
I agree with a great deal that has fallen from my hon. Friend, but not with all. I agree that the whole arrangement which was decided upon has been carried out up to this point with perfect fairness, with perfect honour throughout the House. It has been a very good-tempered Debate apart from that, and remarkable progress has been made. But where I take exception is as to what the hon. Member has said about there having been some arrangement that, if matters of gravity arose, no serious change in the law would be made. I wish to point out that, while it is quite true that this new Clause which has just been voted upon is an important matter, there have been, since that arrangement was made, many Clauses and Amendments moved of great importance, such as preference, abolition of duties and so forth.
Oh, no. Not since that arrangement was made. The question of preference was argued on Clause 1.
I apologise. That is so. There has been matters of great importance raised and discussed It is extremely unfortunate that, just at the closing moments or working under an agreement of this nature, which was working with perfect success, the last Division should have been on a subject that excites great interest, perhaps from its memory of ancient fights, probably more interest than on the merits of the particular new Clause it deserves to arouse. I would suggest to the Committee that we might now accept what has been done, and take a full Debate on the Report stage, keeping as nearly as possible to the agreement we made which was to finish about 12 o'clock. It is now nearly one o'clock. So let us report the Bill. Otherwise it means that we shall possibly continue to discuss the Clause for a very protracted period, and I cannot help thinking that in a matter of this kind we should have a better Debate, and one in which I think we should be more fresh if we postponed the Debate to the Report stage. I suggest that that would meet the situation which has arisen.
:I am extremely sorry that my right hon. Friend the Leader of the Opposition is not here. He had to leave the House a short time ago, and I know that when he left he expressed himself as extremely anxious that the arrangement which was come to should be carried out. I have a good deal of sympathy with what has been said by the Member for Penistone (Mr. Pringle), but I think it is clear to almost everyone in the Committee that a good deal of what has occurred has been a matter of confusion rather than anything else. That may be so on both sides. I do not think the situation can be entirely put down to the action of the Government. I think the situation was brought about almost accidentally. When this sort of arrangements are come to, it is a matter of extreme importance for both sides of the House that they should be adhered to, for, unless that is done, it is quite clear that one party or the other must definitely and almost intentionally break the arrangement. I do not think anyone can say there has been anything except an accidental breach, at the worst, owing to confusion.
I admit the Prime Minister has recognised, with great fairness, the difficulty in which we are placed, but I am afraid I cannot agree with my hon. Friend who has just spoken. I confess I do not think that the spirit of the agreement with us has been kept in the events which have taken place. I am bound to say that the very sudden decision on the part of the Government in dealing with this new Clause has introduced a new element. There is a very important matter to which many of my hon. Friends attach the greatest importance. The Financial Secretary to the Treasury gets up and he explains that he is not in a position to accept the Clause and that a Committee is sitting to discuss it at the Treasury. Then he takes off the Whips. I think that when he takes off the Whips and when he really encourages his party to what he knows is an improper thing to do—[ Interruption] ——
The Division will come all the quicker if the hon. Member is allowed to proceed.
The effect of that is that an entirely new issue has been presented to the Committee which was not present to our minds before. It is perfectly obvious that there were a great number of questions raised in the course of the Debate on which we should have liked to have spoken. If we had known that there was the slightest chance of a change coming at the last minute, and that the change was one which the Financial Secretary to the Treasury himself said was quite improper for him to carry through, I am bound to say the discussion would not have been conducted in the way it was. In these circumstances it would be quite improper for us, and I do not think it could be expected of us, to allow this Clause to be added to the Bill without a discussion of the whole subject. I think it is the Government that have broken the agreement. [ Interruption. ] As the whole question is open, I think my hon. Friend is perfectly right in asking for leave to report Progress in order to carry on this discussion on another day. I think it is the least to which we are entitled.
May I just say one word? The hon. Member has made charges against the Government and myself personally, but there is one fact that he has not given. It is quite true I said the Amendment could not be accepted, but when I appealed to my hon. Friends behind me they rose and asked leave to withdraw it. The Question was put from the Chair, but it was challenged from the other side of the House. There is no possible doubt that, if it had not been challenged, the Clause would have been withdrawn. I think it is only right that that fact should be known.
1.0 A.M.
Can the right hon. Gentleman explain to the Committee why, on such an important matter as this, the Whips were taken off, while, on the reduction of the Entertainments Duty, ths Whips were put on?
If the Government Whips had been put on, it would have been to try to force Members of the Government and Members on this side of the Committee to vote against their views, and on the Motion that the Clause stand part, I could not possibly have asked them to vote "No."
Was not that done on the Entertainments Duty?
I desire to be perfectly fair. I am in the recollection of the Committee, and I merely thought it right to make that statement. There has been no breach of faith, either on the part of the Government or myself.
The Financial Secretary to the Treasury has hardly made matters better. His new found anxiety that his Friends behind him should vote in accordance with their convictions is hardly convincing, in view of what happened on the Entertainments Duty, when, actually, one of the Government Whips entered the "Aye" Lobby and endeavoured forcibly to get supporters of the Government out of it to prevent them from redeeming their pledges to their constituents.
The Question is whether we now report Progress.
We have been discussing the merits of the Government's action, which is relevant to the question as to whether we should report Progress and deal with this on the Report stage. I have cited a sufficient number of examples of the contrary practice to make the right hon. Gentleman's assurance hardly convincing. I do not think he makes his case any better. I am not here to defend those who challenge a Division. I do not think the challenge came from this side, and when the second call came the challenge was entirely from the Government Benches. [HON. MEMBERS: "No!"] The proceedings that took place between the two calls showed that advantage was going to be taken of the foolishness of those on this side of the Committee who had challenged a Division. The real point which the Prime Minister has not answered, nor has the Financial Secretary, and it is known to the Committee, is that, apart from the Opposition, this Clause could never have been reached within the time allotted to the Committee stage, and it is entirely due to the indulgence of the Opposition that this opportunity was given. That cannot be gainsaid. It was with that in view that we endeavoured to take as small a part in the discussions as possible, and the opportunity was really due to the action of the Opposition. It is a strange thing that the Prime Minister so early in his career should take advantage—[HON. MEMBEES: "Oh!"] Hon. Members opposite must think that we have no case at all. If the Financial Secretary had got up and said, "I am going to accept this Clause," we would have had a discussion; we would have fought the matter out, and we would not have been done with it now. It was because the right hon. Gentleman was not going to accept it that the Division was taken. Of course the hon. Gentleman is entitled to his triumph by what the Opposition regards as a breach of faith. [HON. MEMBERS: "No!" and "Withdraw !"] I have said nothing out of order; I have been very careful in the selection of my words. I am therefore entitled to say what I have already said, namely, that this triumph has been secured by what the Opposition regards as a breach of faith. [HON. MEMBERS: "Not at all" and an HON. MEMBER: "Trevelyan did not say it."] He has not repudiated it. In these circumstances the Government are taking a very unfortunate course—a course which is not going to promote the smooth working of our discussions in this House. I believe it is a course that is fatal to all future arrangements between all sides. It is fair to say that these arrangements have been in the past in the interests and for the convenience of hon. Members on both sides, and I shall regret very much that such arrangements cannot be made. It is only recently that I have been in touch with the House of Commons, but I have had eight years' experience of Parliament. I was very close in my attendance at Debates, and in that time I was frequently a party to arrangements, at one time with the Noble Lord who is now Viceroy of Ireland, and I have been cognisant of arrangements made between the parties. I have never seen an occasion in which, when there was a suggestion of this kind made, that one of the parties to an agreement felt a grievance as to its interpretation in which the other party, who was going to benefit by what had happened, did not refrain from pressing a Division. In the present circumstances the Government would have been well advised, in their own interests, not to have pressed this, and I believe that on reflection they will come to that view. It is for that reason that I move to report Progress and that I intend to divide the Committee.
The speech to which we have just listened deserves some notice. The hon. and learned Member who has just spoken is far too good a Parliamentarian to make a false point on Parliamentary procedure, but he will forgive me if I suggest to him that he has done so. He seems to suggest that, when an undertaking is given that a stage of a Bill, shall be completed at a certain time, then when certain discussions take place on certain Clauses, and hon. Members refrain from talking too long in order that Divisions may be taken, that all the virtue lies on one side of the House. I do not think that is a true view, and I am certain that, on reflection, he will recognise that he has put his case too high. The truth is that, when an undertaking of that kind is given, it is intended to give an opportunity to hon. Members in all parts of the House to move Clauses in which they take special interest, and that an opportunity may be given to as many hon. Members as possible to reach a conclusion, by a Division if necessary. The result is that a great number of subjects will have been dealt with by the Committee and the best use made of Parliamentary time. In regard to the Clause now under discussion, it has received very adequate discussion, if not to-night, at any rate on many previous occasions.
Not in this Parliament.
Not, perhaps, in this Parliament. That means that we had not the advantage in the last Parliament of hearing the hon. and learned Member. For my part, I say quite candidly, that is a disadvantage, because I am glad to hear what he has to say. I value his Parliamentary experience and skill, but nevertheless, some of us in his absence have heard this Clause discussed many times until the subject has become threadbare. He may recall what the situation is. The Government were not prepared to accept this Clause. In these circumstances, the right hon. Gentleman the Member for Hammersmith (Sir W. Bull) was perfectly ready to withdraw it, and he desired and offered to do so. By a strange and unfortunate accident, arising out of the Debate which followed, leave to withdraw the Clause was not given.
The hon. and learned Member knows that, in these circumstances, a difficulty has risen to those hon. Member's who have been unwise enough not to allow the Clause to be withdrawn and the policy indicated by the Government to be carried out. That did not create a breach of faith, and I must enter a protest on behalf of myself and a number of my hon. Friends who feel that rather harsh words have been used by the hon. and learned Member, as we were not willing to cause a breach of faith and are not conscious of having done so. I think the hon. and learned Member for Penistone (Mr. Pringle) will, on reflection, put down some of the fault to the fact that hon. Members on his side of the Committee refused to allow this Clause to be withdrawn, I quite acquit him of conduct which would be so unwise from a Parliamentary point of view, but that is how it arose, and it does not contribute to the benefit either of present or of future Parliamentary procedure to suggest that one side or the other have been guilty of breach of faith. If this Clause can be further discussed on the Report stage, it can be dealt with when the hon. Member has had an opportunity of reflecting as to what date we will put in. In that way we can deal with this matter and with the rest of the subjects on the Order Paper. Although they bulk large on the Order Paper they are really very few, because they are hardy annuals. I think the hon. and learned Member for Penistone, when he considers the position, will be quite sure that he has not used the right expression.
I have only one point to make. The Financial Secretary to the Treasury takes the view that he is not in any way responsible for the passing of this Clause. I was in a position to see exactly what took place, and I think I am right in saving that he invited the right hon. Gentleman the Member for Hammersmith (Sir W. Bull) to tell in the Division. If he had not done that, there would have been no Division, and the Clause would not have been passed. Therefore, I say it is not quite right for the right hon. Gentleman, or for the Government, to repudiate responsibility for the passing of this Clause.
The hon. and gallant Member is entirely mistaken. I said I would tell, and I told the Chief Whip I would tell.
What I said was simply this—[HON. MEMBERS: "Withdraw"]—that the right hon. Gentleman the Financial Secretary to the Treasury invited the right hon. Gentleman the Member for Hammersmith to tell, and he consented. Therefore, I say I have nothing to withdraw.
What happened was this: The right hon. Member for Hammersmith (Sir W. Bull) came up, and I understood he was giving in his name to the Chairman as a Teller. The Prime Minister had decided that the Government Whips should not be put on, and as the right hon. Member for Hammersmith came up I said, "The Government Whips are not going on; but if you want a Division, you must tell." Before I said those words, the right hon. Member had given his name.
I do not think there is any real difference. I was in a position to hear exactly what took place and my memory is distinctly different from that of the right hon. Gentleman. My distinct recollection is that he said to the right hon. Member for Hammersmith, "Will you tell?" and the right hon. Gentleman said "Yes." My recollection is as likely to be right as the right hon. Gentleman.
I would like to say that we arranged that the right hon. Member for Hammersmith and I would tell before the Financial Secretary went down the Floor of the House at all. The real position is simple, and it is this: Several Members of the Opposition thought that they would take advantage of the Government, and score off the Government by challenging a Division; but they have been hoist with their own petard.
This is not a question which solely regards those hon. Members who sit on the Front Benches on either side of the Committee. It affects private Members. If hon. Members had seen the face of the Financial Secretary, they would have been in complete agreement with us. I congratulate them on having put their own leaders in a position which we feel means that they have committed a gross breach of faith.
I have been an observer of the drama that has been enacted on the other side of the Committee for the last two and a half hours. We, on this side of the Committee, cannot allow the statement of the Financial Secretary to go unchallenged. He places the responsibility upon us of objecting to the withdrawal of the Clause and of forcing a Division. The withdrawal was challenged by those who voted against the Government. We voted with the Government in that Division. The Division was carried against the Government by the Government's own supporters. The right hon. Member for Chelmsford (Mr. Pretyman) has just given the case away. He said he arranged with the right hon. Member for Hammersmith (Sir W. Bull) to tell in the Division. I watched the drama and watched the right hon. Member for Chelmsford, who first attempted to persuade the right hon. Member for Hammersmith to withdraw. The point I want to make is that the responsibility for the Division does not rest upon this side of the Committee at all, but on those on the other side of the Committee who were determined to force the Clause on the Government. They did it by their votes in the Lobby as well as by their challenge. The challenge came from Members below the Gangway opposite. There was some challenge from here, but the noisy and persistent challenge came from hon. Members below the Gangway who were determined to force the Clause upon the Government, and they succeeded. I am not going to say that there has been any breach of faith, but I can say that the past two and a half hours have been occupied by supporters of the Government moving Clauses which had the sympathy of the Government, and then withdrawing them. This particular Clause, that had residing within it the interests of a certain class, the landowning class, was forced upon the Government and a Division was forced by their own supporters. Just previously to this we on this side tried to force a
Division on another Clause and they gave way, but their own supporters would not give way, and on two occasions to-night they carried their case against the Government. They did it again when the Question was put, "That the words proposed to be left out stand part," and insisted against the advice of the Government on the Clause coming into operation at once. We have no responsibility.
After an honourable agreement has been entered into to end at twelve o'clock, we find ourselves here as a result of a squabble at half-past one. This is not dignified. Those of us on this side of the Committee who voluntarily surrendered, without discussion and without moving Amendments which have vital consequences to the men we represent, have reason to complain. I myself surrendered voluntarily an Amendment which, if accepted, as I hoped it would be, would have prevented men going to gaol for Income Tax which they could not pay. Both sides of the Committee were to blame. I have sat here and listened to hon. Members on the other side of the Committee who, in spite of cries of "Divide" from hon. Members behind them, have insisted on repeating themselves. If I had been wise then I should have asserted my right as a private Member to move my Amendment. I submit that at this late hour this undignified squabble should now end.
rose in his place, and claimed to move, "That the Question be now put."
Question put, "That the Question be now put."
The Committee divided: Ayes, 208; Noes, 97.
Division No. 234.] AYES. [1.30 a. m. Agg-Gardner, Sir James Tynte Blundell, F. N. Cecil, Rt. Hon. Lord R. (Hitchin) Ainsworth, Captain Charles Bowyer, Captain G. E. W. Chamberlain, Rt. Hon. N. (Ladywood) Alexander, Col. M. (Southwark) Brass, Captain W. Churchman, Sir Arthur Allen, Lieut.-Col. Sir William James Brassey, Sir Leonard Clarry, Reginald George Amery, Rt. Hon. Leopold C. M. S. Bridgeman, Rt. Hon. William Clive Coates, Lt.-Col. Norman Ashley, Lt.-Col. Wilfrid W. Briggs, Harold Colfox, Major Wm. Phillips Astor, J. J. (Kent, Dover) Brittain, Sir Harry Colvin, Brig.-General Richard Beale Baird, Rt. Hon. Sir John Lawrence Brown, Brig.-Gen. Clifton (Newbury) Cope, Major William Baldwin, Rt. Hon. Stanley Brown, J. W. (Middlesbrough, E.) Courthope, Lieut.-Col. George L. Balfour, George (Hampstead) Buckley, Lieut.-Colonel A. Craig, Captain C. C. (Antrim, South) Banks, Mitchell Bull, Rt. Hon. Sir William James Crook, C. W. (East Ham, North) Barlow, Rt. Hon. Sir Montague Burney, Com. (Middx., Uxbridge) Crooke, J. Smedley (Deritend) Barnett, Major Richard W. Butt, Sir Alfred Curzon, Captain Viscount Barnston, Major Harry Button, H. S. Davidson, J. C. C. (Hemel Hempstead) Barrie, Sir Charles Coupar (Banff) Cadogan, Major Edward Davidson, Major-General Sir J. H. Bell, Lieut.-Col. W. C. H. (Devizes) Campion, Lieut.-Colonel W. R. Davies, Thomas (Clrencester) Berry, Sir George Cautley, Henry Strother Davison, Sir W. H. (Kensington, S.) Betterton, Henry B. Cayzer, Sir C. (Chester, City) Doyle, N. Grattan Birchall, Major J. Dearman Cecil, Rt. Hon. Sir Evelyn (Aston) Du Pre, Colonel William Baring Bird, Sir William B. M. (Chichester) Cecil, Rt. Hon. Lord H. (Ox. Univ.) Edmondson, Major A. J. Ednam, Viscount Kinloch-Cooke, Sir Clement Roberts, Samuel (Hereford, Hereford) Elliot, Capt. Walter E. (Lanark) Lamb, J. Q. Robertson-Despencer, Major(Isl'gt'n W) Ellis, R. G. Lane-Fox, Lieut.-Colonel G. R. Rogerson, Capt. J. E. England, Lieut.-Colonel A. Leigh, Sir John (Clapham) Roundell, Colonel R. F. Erskine, Lord (Weston-super-Mare) Lloyd-Greams, Rt. Hon. Sir P. Ruggles-Brise, Major E. Erskine-Bolst, Captain C. Lorimer, H. D. Russell, Alexander West- (Tynemouth) Falcon, Captain Michael Lort-Williams, J. Russell-Wells, Sir Sydney Falle, Major Sir Bertram Godfray Lougher, L. Samuel, A. M. (Surrey, Farnham) Fawkes, Major F. H. Loyd, Arthur Thomas (Abingdon) Samuel, Samuel (W'dsworth, Putney) Flanagan, W. H. Lumloy, L. R. Sanders, Rt. Hon. Sir Robert A. Ford, Patrick Johnston Lynn, R. J. Sanderson, Sir Frank B. Foxcroft, Captain Charles Talbot Macdonald, Sir Murdoch (Inverness) Sandon, Lord Fraser, Major Sir Keith Macnaghten, Hon. Sir Malcolm Sassoon, Sir Philip Albert Gustave D. Fremantle, Lieut.-Colonel Francis E. McNeill, Ronald (Kent, Canterbury) Shepperson, E. W. Furness, G. J. Malone, Major P. B. (Tottenham, S.) Simpson-Hinchcliffe, W. A. Galbraith, J. F. W. Margesson, H. D. R. Skelton, A. N. Garland, C. S. Mason, Lieut.-Col. C. K. Smith, Sir Allan M. (Croydon, South) Gates, Percy Milne, J. S. Wardlaw Smith, Sir Harold (Wavertree) Gaunt, Rear-Admiral Sir Guy R. Moore, Major-General Sir Newton J. Somerville, A. A. (Windsor) Goff, Sir R. Park Moore-Brabazon, Lieut.-Col. J. T. C. Somerville, Daniel (Barrow-in-Furness) Gould, James C. Moreing, Captain Algernon H. Stanley, Lord Greene, Lt.-Col. Sir W. (Hack'y, N.) Morrison, Hugh (Wilts, Salisbury) Steel, Major S. Strang Greenwood, William (Stockport) Morrison-Bell, Major A. C. (Honiton) Stockton, Sir Edwin Forsyth Guinness, Lieut.-Col. Hon. W. E. Murchison, C. K. Sueter, Rear-Admiral Murray Fraser Hacking, Captain Douglas H. Nail, Major Joseph Sugden, Sir Wilfrid H. Hall, Lieut.-Col. Sir F. (Dulwich) Nesbitt, Robert C. Sykes, Major-Gen. Sir Frederick H. Halstead, Major D. Newman, Sir R. H. S. D. L. (Exeter) Terrell, Captain R. (Oxford, Henley) Hamilton, Sir George C. (Altrincham) Nicholson, William G. (Petersfield) Thomson, F. C. (Aberdeen, South) Hannon, Patrick Joseph Henry Norton-Griffiths, Lieut.-Col. Sir John Thorpe, Captain John Henry Harmsworth, Hon. E. C. (Kent) O'Neill, Rt. Hon. Hugh Tryon, Rt. Hon. George Clement Harrison, F. C. Ormsby-Gore, Hon. William Turton, Edmund Russborough Henn, Sir Sydney H. Paget, T. G. Ward, Col. L. (Kingston-upon-Hull) Hennessy, Major J. R. G. Parker, Owen (Kettering) Waring, Major Walter Herbert, S. (Scarborough) Pease, William Edwin Watts, Dr. T. (Man., Withington) Hewett, Sir J. P. Penny, Frederick George Wells, S. R. Hilder, Lieut.-Colonel Frank Percy, Lord Eustace (Hastings) Wheler, Col. Granville C. H. Hogg, Rt. Hon. Sir D. (St. Marylebone) Perkins, Colonel E. K. White, Lt.-Col. G. D. (Southport) Hohler, Gerald Fitzroy Peto, Basil E. Whitla, Sir William Holbrook, Sir Arthur Richard Pollock, Rt. Hon. Sir Ernest Murray Windsor-Clive, Lieut.-Colonel George Hood, Sir Joseph Preston, Sir W. R. Winterton Earl Hopkins, John W. W. Pretyman, Rt. Hon. Ernest G. Wise, Frederick Home, Sir R. S. (Glasgow, Hillhead) Price, E. G. Wolmer, Viscount Houfton, John Plowright Privett, F. J. Wood, Rt. Hn. Edward F. L. (Ripon) Howard, Capt. D. (Cumberland, N.) Raine, W. Woodcock, Colonel H. C. Howard-Bury, Lieut.-Col. C. K. Rawson, Lieut.-Com. A. C. Yate, Colonel Sir Charles Edward Hudson, Capt. A. Rees, Sir Beddoe Yerburgh, R. D. T. Inskip, Sir Thomas Walker H. Reid, D. D. (County Down) Jarrett, G. W. S. Remnant, Sir James TELLERS FOR THE AYES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Jenkins, W. A. (Brecon and Radnor) Rentoul, G. S. Joynson-Hicks, Sir William Richardson, Sir Alex. (Gravesend) King, Captain Henry Douglas Richardson, Lt.-Col. Sir P. (Chertsey)
NOES. Adams D. Harbord, Arthur Mosley, Oswald Adamson, Rt. Hon. William Hardie, George D. Murnin, H. Ammon, Charles George Harris, Percy A. Murray, John (Leeds, West) Benn, Captain Wedgwood (Leith) Hartshorn, Vernon O'Grady, Captain James Bonwick, A. Hayday, Arthur Paling, W. Briant, Frank Hayes, John Henry (Edge Hill) Parker, H. (Hanley) Bromfield, William Henderson, Sir T. (Roxburgh) Parkinson, John Allen (Wigan) Brown, James (Ayr and Butt) Herriotts, J. Parry, Lieut.-Colonel Thomas Henry Buchanan, G. Hinds, John Phillipps, Vivian Chapple, W. A. Hirst, G. H. Potts, John S. Collins, Sir Godfrey (Greenock) Hodge, Lieut.-Col. J. P. (Preston) Pringle, W. M. R. Darbishire, C. W. Hutchison, Sir R. (Kirkcaldy) Rae, Sir Henry N. Dudgeon, Major C. R. Jenkins, W. (Glamorgan, Neath) Richardson, R. (Houghton-le-Spring) Ede, James Chuter John, William (Rhondda, West) Ritson, J. Edwards, C. (Monmouth, Bedwellty) Johnston, Thomas (Stirling) Roberts, C. H. (Derby) Emlyn-Jones, J. E. (Dorset, N.) Johnstone, Harcourt (Willesden, East) Roberts, Frederick O. (W. Bromwich) Evans, Ernest (Cardigan) Jones, Henry Haydn (Merioneth) Robinson, W. C. (York, Elland) Fairbairn, R. R. Jones, Morgan (Caerphilly) Saklatvala, S. Falconer, J. Jones, R. T. (Carnarvon) Salter, Dr. A. Gosling, Harry Jones, T. I. Mardy (Pontypridd) Shakespeare, G. H. Graham, D. M. (Lanark, Hamilton) Jowett, F. W. (Bradford, East) Short, Alfred (Wednesbury) Gray, Frank (Oxford) Jowitt, W. A. (The Hartlepools) Sitch, Charles H. Grenfell, D. R. (Glamorgan) Kenworthy, Lieut.-Commander J. M. Smith, T. (Pontefract) Groves, T. Lawson, John James Stephen, Campbell Grundy, T. W. Leach, W. Thomson, T. (Middlesbrough, West) Guest, Hon. C. H. (Bristol, N.) Lunn, William Tout, W. J. Guthrie, Thomas Maule McLaren, Andrew Turner, Ben Hall, F. (York, W. R. Normanton) Maclean, Neil (Glasgow, Govan) Walsh, Stephen (Lancaster, Ince) Hall, G. H. (Merthyr Tydvil) Millar, J. D. Watson, W. M. (Dunfermline) Hamilton, Sir R. (Orkney & Shetland) Morris, Harold Watts-Morgan, Lt.-Col. D. (Rhondda) Welsh, J. C. Williams, T. (York, Don Valley) TELLERS FOR THE NOES .—Mr. Entwistle and Mr. Long-Sturrock..—Mr. Entwistle and Mr. Long-Sturrock. Westwood, J. Wood, Major M. M. (Aberdeen, C.) White, H. G. (Birkenhead, E.) Young, Robert (Lancaster, Newton) Whiteley, W
Question put accordingly, "That the Chairman do report Progress, and ask leave to sit again."
The Committee divided: Ayes, 55; Noes, 216.
Division No. 235.] AYES. [1.38 a.m. Adams, D. Hall, G. H. (Merthyr Tydvil) Millar, J. D. Barrie, Sir Charles Coupar (Banff) Hamilton, Sir R. (Orkney & Shetland) Morris, Harold Benn, Captain Wedgwood (Leith) Harbord, Arthur Mosley, Oswald Bonwick, A. Harris, Percy A. Murray, John (Leeds, West) Briant, Frank Hayday, Arthur Parry, Lieut.-Colonel Thomas Henry Buchanan, G. Henderson, Sir T. (Roxburgh) Phillipps, Vivian Chapple, W. A. Hinds, John Rae, Sir Henry N. Collins, Sir Godfrey (Greenock) Hirst, G. H. Roberts, C. H. (Derby) Darblshire, C. W. Hodge, Lieut.-Col. J. P. (Preston) Shakespeare, G. H. Dudgeon, Major C. R. Hutchison, Sir R. (Kirkcaldy) Short, Alfred (Wednesbury) Emlyn-Jones, J. E. (Dorset, N.) Jenkins, W. (Glamorgan, Neath) Sturrock, J. Leng Evans, Ernest (Cardigan) John, William (Rhondda, West) Thomson, T. (Middlesbrough, West) Fairbairn, R. R. Johnstone, Harcourt (Willesden, East) Watts-Morgan, Lt.-Col. D. (Rhondda) Falconer, J. Jones, Henry Haydn (Merioneth) White, H. G. (Birkenhead, E.) Gosling, Harry Jowett, F. W. (Bradford, East) Wood, Major M. M. (Aberdeen, C.) Gray, Frank (Oxford) Jowitt, W. A. (The Hartlepools) Young, Robert (Lancaster, Newton) Groves, T. Kenworthy, Lieut.-Commander J. M. Grundy, T. W. Leach, W. TELLERS FOR THE AYES .—Mr. Entwistle and Mr. Pringle..—Mr. Entwistle and Mr. Pringle. Guest, Hon. C. H. (Bristol, N.) McLaren, Andrew Guthrie, Thomas Maule
NOES. Agg-Gardner, Sir James Tynte Crook, C. W. (East Ham, North) Hewett, Sir J. P. Ainsworth, Captain Charles Crooke, J. Smedley (Deritend) Hilder, Lieut.-Colonel Frank Alexander, Col. M. (Southwark) Curzon, Captain Viscount Hogg, Rt. Hon. Sir D. (St. Marylebone) Allen, Lieut.-Col. Sir William James Davidson, J. C. C. (Hemel Hempstead) Hohler, Gerald Fitzroy Amery, Rt. Hon. Leopold C. M. S. Davidson, Major-General Sir J. H. Holbrook, Sir Arthur Richard Ashley, Lt.-Col. Wilfrid W. Davies, Thomas (Cirencester) Hood, Sir Joseph Astor, J. J. (Kent, Dover) Davison, Sir W. H. (Kensington, S.) Hopkins, John W. W. Baird, Rt. Hon. Sir John Lawrence Doyle, N. Grattan Horne, Sir R. S. (Glasgow, Hillhead) Baldwin, Rt. Hon. Stanley Du Pre, Colonel William Baring Houfton, John Plowright Balfour, George (Hampstead) Ede, James Chuter Howard, Capt. D. (Cumberland, N.) Banks, Mitchell Edmondson, Major A. J. Howard-Bury, Lieut.-Col. C. K. Barlow, Rt. Hon. Sir Montague Ednam, Viscount Hudson, Capt. A. Barnett, Major Richard W. Edwards, C. (Monmouth, Bedwellty) Inskip, Sir Thomas Walker H. Barnston, Major Harry Elliot, Capt. Walter E. (Lanark) Jarrett, G. W. S. Bell, Lieut.-Col. W. C. H. (Devizes) Ellis, R. G. Jenkins, W. A. (Brecon and Radnor) Berry, Sir George England, Lieut.-Colonel A. Joynson-Hicks, Sir William Betterton, Henry B. Erskine, Lord (Weston-super-Mare) King, Captain Henry Douglas Birchall, Major J. Dearman Erskine-Bolst, Captain C. Kinloch-Cooke, Sir Clement Blundell, F. N. Falcon, Captain Michael Lamb, J. Q. Bowyer, Captain G. E. W. Falle, Major Sir Bertram Godfray Lane-Fox, Lieut.-Colonel G. R. Brass, Captain W. Fawkes, Major F. H. Leigh, Sir John (Clapham) Brassey, Sir Leonard Fildes, Henry Lloyd-Greame, Rt. Hon. Sir P. Bridgeman, Rt. Hon. William Clive Flanagan, W. H. Lorimer, H. D. Briggs, Harold Ford, Patrick Johnston Lort-Williams, J. Brittain, Sir Harry Foxcroft, Captain Charles Talbot Lougher, L. Brown, Brig.-Gen. Clifton (Newbury) Fraser, Major Sir Keith Loyd, Arthur Thomas (Abingdon) Brown, J. W. (Middlesbrough, E.) Fremantle, Lieut.-Colonel Francis E. Lumley, L. R. Buckley, Lieut.-Colonel A. Furness, G. J. Lynn, R. J. Bull, Rt. Hon. Sir William James Galbraith, J. F. W. Macdonald, Sir Murdoch (Inverness) Burney, Com. (Middx., Uxbridge) Garland, C. S. Macnaghten, Hon. Sir Malcolm Butt, Sir Alfred Gates, Percy McNeill, Ronald (Kent, Canterbury) Button, H. S. Gaunt, Rear-Admiral Sir Guy R. Malone, Major P. B. (Tottenham, S.) Cadogan, Major Edward Goff, Sir R. Park Margesson, H. D. R. Campion, Lieut.-Colonel W. R. Gould, James C. Mason, Lieut.-Col. C. K. Cautley, Henry Strother Greene, Lt.-Col. Sir W. (Hack'y, N.) Milne, J. S. Wardlaw Cayzer, Sir C. (Chester, City) Greenwood, William (Stockport) Moore, Major-General Sir Newton J. Cecil, Rt. Hon. Sir Evelyn (Aston) Guinness, Lieut.-Col. Hon. W. E. Moore-Brabazon, Lieut.-Col. J. T. C. Cecil, Rt. Hon. Lord H. (Ox. Univ.) Hacking, Captain Douglas H. Moreing, Captain Algernon H. Cecil, Rt. Hon. Lord R. (Hitchin) Hall, Lieut.-Col. Sir F. (Dulwich) Morrison, Hugh (Wilts, Salisbury) Churchman, Sir Arthur Halstead, Major D. Morrison-Bell, Major A. C. (Honiton) Clarry, Reginald George Hamilton, Sir George C. (Altrincham) Murchison, C. K. Coates, Lt.-Col. Norman Hannon, Patrick Joseph Henry Nall, Major Joseph Cockerill, Brigadier-General G. K. Harmsworth, Hon. E. C. (Kent) Nesbitt, Robert C. Colfox, Major Wm. Phillips Harrison, F. C. Newman, Sir R. H. S. D. L. (Exeter) Colvin, Brig.-General Richard Beale Hartshorn, Vernon Nicholson, William G. (Petersfield) Cope, Major William Henn, Sir Sydney H. Norton-Griffiths, Lieut.-Col. Sir John Courthope, Lieut.-Col. George L. Hennessy, Major J. R. G. O'Grady, Captain James Craig, Captain C. C. (Antrim, South) Herbert, S. (Scarborough) O'Neill, Rt. Hon. Hugh Ormsby-Gore, Hon. William Ruggles-Brise, Major E. Thomson, F. C. (Aberdeen, South) Paget, T. G. Russell, Alexander West (Tynemouth) Thorpe, Captain John Henry Parker, Owen (Kettering) Russell-Wells, Sir Sydney Tout, W. J. Pease, William Edwin Salter, Dr. A. Tryon, Rt. Hon. George Clement Penny, Frederick George Samuel, A. M. (Surrey, Farnham) Turner, Ben Percy, Lord Eustace (Hastings) Samuel, Samuel (W'dsworth, Putney) Turton, Edmund Russborough Perkins, Colonel E. K. Sanders, Rt. Hon. Sir Robert A. Ward, Col. L. (Kingston-upon-Hull) Peto, Basil E. Sanderson, Sir Frank B. Waring, Major Walter Pollock, Rt. Hon. Sir Ernest Murray Sandon, Lord Watts, Dr. T. (Man., Withington) Preston, Sir W. R. Sassoon, sir Philip Albert Gustave D. Wells, S. R. Pretyman, Rt. Hon. Ernest G. Shepperson, E. W. Wheler, Col. Granville C. H. Price, E. G. Simpson-Hinchcliffe, W. A. White, Lt.-Col. G. D. (Southport) Privett, F. J. Sitch, Charles H. Whitla, Sir William Raine, W. Skelton, A. N. Windsor-Clive, Lieut.-Colonel George Rawson, Lieut.-Com. A. C. Smith, Sir Allan M. (Croydon, South) Winterton, Earl Rees, Sir Beddoe Smith, Sir Harold (Wavertree) Wise, Frederick Reid, D. D. (County Down) Somerville, A. A. (Windsor) Wolmer, Viscount Remnant, Sir James Somerville, Daniel (Barrow-in-Furness) Wood, Rt. Hn. Edward F. L. (Ripon) Rentoul, G. S. Stanley, Lord Woodcock, Colonel H. C. Richardson, Sir Alex. (Gravesend) Steel, Major S. Strang Yate, Colonel Sir Charles Edward Richardson, Lt.-Col. Sir P. (Chertsey) Stockton, Sir Edwin Forsyth Yerburgh, R. D. T. Roberts, Samuel (Hereford, Hereford) Sueter, Rear-Admiral Murray Fraser Robertson-Despencer, Major(Isigtn, W) Sugden, Sir Wilfrid H. TELLERS FOR THE NOES .—Colonel Leslie Wilson and Colonel Gibbs..—Colonel Leslie Wilson and Colonel Gibbs. Robinson, W. C. (York, Elland) Sykes, Major-Gen. Sir Frederick H. Rogerson, Capt. J. E, Terrell, Captain R. (Oxford, Henley) Rounded, Colonel R. F.
rose in his place, and claimed to move, "That the Original Question be now put."
Question put accordingly, "That the Clause be added to the Bill."
The Committee proceeded to a Division —
( seated and covered ): On a point of Order. Has the Closure been moved?
I am applying Standing Order 26.
Without any discussion taking place?
Yes.
Are we to understand that, without any discussion, a Clause which the Government rejected is to be added to this Bill? It is adding insult to injury. It is an abuse.
( seated and covered ): On a point of Order. In your ruling, Mr. Hope, you have decided that you are applying Standing Order No. 26. Standing Order No. 26 gives you power to apply the Closure on the ground that there is an abuse of the Rules of the House or an infringement of the rights of the minority of the House. May I ask you if the very fact that this Clause has not been sufficiently debated is not an infringement of the rights of the minority of this Committee and that consequently the Motion should not have been accepted by you?
The hon. Member has not read Standing Order No. 26 (2).
You said you were applying Standing Order No. 26, and now you say you are applying 26 (2).
The Committee divided: Ayes, 205; Noes, 101.
Division No. 236.] AYES. [1.47 a.m. Agg-Gardner, Sir James Tynte Blundell, F. N. Cecil, Rt. Hon. Sir Evelyn (Aston) Ainsworth, Captain Charles Bowyer, Captain G. E. W. Cecil, Rt. Hon. Lord H. (Ox. Univ.) Alexander, Col. M. (Southwark) Brass, Captain W. Cecil, Rt. Hon. Lord R. (Hitchin) Allen, Lieut.-Col. Sir William James Brassey, Sir Leonard Churchman, Sir Arthur Amery, Rt. Hon. Leopold C. M. S. Bridgeman, Rt. Hon. William Clive Clarry, Reginald George Ashley, Lt.-Col. Wilfrid W. Briggs, Harold Coates, Lt.-Col. Norman Astor, J. J. (Kent, Dover) Brittain, Sir Harry Cockerill, Brigadier-General G. K. Baird, Rt. Hon. Sir John Lawrence Brown, Brig.-Gen. Clifton (Newbury) Colfox, Major Wm. Phillips Baldwin, Rt. Hon. Stanley Brown, J. W. (Middlesbrough, E.) Colvin, Brig.-General Richard Beale Balfour, George (Hampstead) Buckley, Lieut.-Colonel A. Cope, Major William Banks, Mitchell Bull, Rt. Hon. Sir William James Courthope, Lieut.-Col. George L. Barnett, Major Richard W. Burney, Com. (Middx., Uxbridge) Craig, Captain C. C. (Antrim, South) Barnston, Major Harry Butt, Sir Alfred Crook, C. W. (East Ham, North) Barrie, Sir Charles Coupar (Banff) Button, H. S. Crooke, J. Smedley (Deritend) Bell, Lieut.-Col. W. C H. (Devizes) Cadogan, Major Edward Curzon, Captain Viscount Berry, Sir George Camplon, Lieut.-Colonel W. R. Davidson, J. C. C. (Hemel Hempstead) Betterton, Henry B. Cautley, Henry Strother Davidson, Major-General Sir J. H. Birchall, Major J. Dearman Cayzer, Sir C. (Chester, City) Davies, Thomas (Cirencester) Davison, Sir W. H. (Kensington, S.) Jenkins, W. A. (Brecon and Radnor) Roberts, Samuel (Hereford, Hereford) Doyle, N. Grattan Joynson-Hicks, Sir William Robertson-Despencer, Major (Isigtn, W) Dudgeon, Major C. R. Kinloch-Cooke, Sir Clement Rogerson, Capt. J. E. Du Pre, Colonel William Baring Lamb, J. Q. Roundell, Colonel R. F. Edmondson, Major A. J. Lane-Fox, Lieut.-Colonel G. R. Ruggles-Brise, Major E. Ednam, Viscount Leigh, Sir John (Clapham) Russell, Alexander West (Tynemouth) Elliot, Capt. Walter E. (Lanark) Lloyd-Greame, Rt. Hon. Sir P. Russell-Wells, Sir Sydney Ellis, R. G. Lorimer, H. D. Samuel, A. M. (Surrey, Farnham) England, Lieut.-Colonel A. Lort-Williams, J. Samuel, Samuel (W'dsworth, Putney) Erskine, Lord (Weston-super-Mare) Lougher, L. Sanders, Rt. Hon. Sir Robert A. Erskine-Bolst, Captain C. Loyd, Arthur Thomas (Abingdon) Sanderson, Sir Frank B. Falcon, Captain Michael Lumley, L. R. Sandon, Lord Falle, Major Sir Bertram Godfray Lynn, R. J. Sassoon, Sir Philip Albert Gustave D. Fawkes, Major F. H. Macdonald, Sir Murdoch (Inverness) Shepperson, E. W. Flanagan, W. H. Macnaghten, Hon. Sir Malcolm Simpson-Hinchcliffe, W. A. Ford, Patrick Johnston McNeill, Ronald (Kent, Canterbury) Skelton, A. N. Foxcroft, Captain Charles Talbot Malone, Major P. B. (Tottenham, S.) Smith, Sir Allan M. (Croydon, South) Fraser, Major Sir Keith Margesson, H. D. R. Smith, Sir Harold (Wavertree) Fremantle, Lieut.-Colonel Francis E. Mason, Lieut.-Col. C. K. Somerville, A. A. (Windsor) Furness, G. J. Milne, J. S. Wardlaw Somerville, Daniel (Barrow-in-Furness) Galbraith, J. F. W. Moore, Major-General Sir Newton J. Stanley, Lord Garland, C. S. Moore-Brabazon, Lieut.-Col. J. T. C. Steel, Major S. Strang Gates, Percy Moreing, Captain Algernon H. Stockton, Sir Edwin Forsyth Gaunt, Rear-Admiral Sir Guy R. Morrison, Hugh (Wilts, Salisbury) Sueter, Rear-Admiral Murray Fraser Goff, Sir R. Park Morrison-Bell, Major A. C. (Honiton) Sugden, Sir Wilfrid H. Gould, James C. Murchison, C. K. Sykes, Major-Gen. Sir Frederick H. Greenwood, William (Stockport) Nall, Major Joseph Terrell, Captain R. (Oxford, Henley) Guinness, Lieut.-Col. Hon. W. E. Nesbitt, Robert C. Thomson, F. C. (Aberdeen, South) Hacking, Captain Douglas H. Newman, Sir R. H. S. D. L. (Exeter) Thorpe, Captain John Henry Hall, Lieut.-Col. Sir F. (Dulwich) Nicholson, William G. (Petersfield) Tryon, Rt. Hon. George Clement Halstead, Major D. Norton-Griffiths, Lieut.-Col. Sir John Turton, Edmund Russborough Hamilton, Sir George C. (Altrincham) O'Neill, Rt. Hon. Hugh Ward, Col. L. (Kingston-upon-Hull) Hannon, Patrick Joseph Henry Ormsby-Gore, Hon. William Waring, Major Walter Harmsworth, Hon. E. C. (Kent) Paget, T. G. Watts, Dr. T. (Man., Withington) Harrison, F. C. Parker, Owen (Kettering) Wells, S. R. Henn, Sir Sydney H. Pease, William Edwin Wheler, Col. Granville C. H Hennessy, Major J. R. G. Penny, Frederick George White, Lt.-Col. G. D. (Southport) Herbert, S. (Scarborough) Percy, Lord Eustace (Hastings) Whitla, Sir William Hewett, Sir J. P. Perkins, Colonel E. K. Wilson, Lt.-Col. Leslie O. (P'lsm'th, S.) Hilder, Lieut.-Colonel Frank Peto, Basil E. Windsor-Clive, Lieut.-Colonel George Hogg, Rt. Hon. Sir D. (St. Marylebone) Pollock, Rt. Hon. Sir Ernest Murray Winterton, Earl Hohler, Gerald Fitzroy Preston, Sir W. R. Wise, Frederick Holbrook, Sir Arthur Richard Pretyman, Rt. Hon. Ernest G. Wolmer, Viscount Hood, Sir Joseph Price, E. G. Wood, Rt. Hn. Edward F. L. (Ripon) Hopkins, John W. W. Privett, F. J. Woodcock, Colonel H. C. Horne, Sir R. S. (Glasgow, Hillhead) Raine, W. Yate, Colonel Sir Charles Edward Houfton, John Plowright Rawson, Lieut.-Com. A. C. Yerburgh, R. D. T. Howard, Capt. D. (Cumberland, N.) Reid, D. D. (County Down) Howard-Bury, Lieut.-Col. C. K. Remnant, Sir James TELLERS FOR THE AYES .—Colonel Gibbs and Captain Douglas King..—Colonel Gibbs and Captain Douglas King. Hudson, Capt. A. Rentoul, G. S. Inskip, Sir Thomas Walker H. Richardson, Sir Alex. (Gravesend) Jarrett, G. W. S. Richardson, Lt.-Col. Sir P. (Chertsey)
NOES. Adams, D. Hamilton, Sir R. (Orkney & Shetland) Mosley, Oswald Adamson, Rt. Hon. William Harbord, Arthur Murnin, H. Alexander, A. V. (Sheffield, Hillsbro') Hardie, George D. Murray, John (Leeds, West) Ammon, Charles George Harris, Percy A. O'Grady, Captain James Benn, Captain Wedgwood (Leith) Hartshorn, Vernon Paling, W. Bonwick, A. Hayday, Arthur Parker, H. (Hanley) Briant, Frank Hayes, John Henry (Edge Hill) Parkinson, John Allen (Wigan) Bromfield, William Henderson, Sir T. (Roxburgh) Parry, Lieut.-Colonel Thomas Henry Brown, James (Ayr and Bute) Herriotts, J. Ponsonby, Arthur Buchanan, G. Hinds, John Potts, John S. Chapple, W. A. Hirst, G. H. Pringle, W. M. R. Collins, Sir Godfrey (Greenock) Hodge, Lieut.-Col. J. P. (Preston) Rees, Sir Beddoe Darblshire, C. W. Hutchison, Sir R. (Kirkcaldy) Richardson, R. (Houghton-le-Spring) Ede, James Chuter Jenkins, W. (Glamorgan, Neath) Riley, Ben Edwards, C. (Monmouth, Bedwellty) John, William (Rhondda, West) Ritson, J. Emlyn-Jones, J. E. (Dorset, N.) Johnston, Thomas (Stirling) Roberts, C. H. (Derby) Entwistle, Major C. F. Johnstone, Harcourt (Willesden, East) Roberts, Frederick O. (W. Bromwich) Evans, Ernest (Cardigan) Jones, Henry Haydn (Merioneth) Robinson, W. C. (York, Elland) Fairbairn, R. R. Jones, Morgan (Caerphilly) Saklatvala, S. Falconer, J. Jones, R. T. (Carnarvon) Salter, Dr. A. Gosling, Harry Jones, T. I. Mardy (Pontypridd) Sexton, James Graham, D. M. (Lanark, Hamilton) Jowett, F. W. (Bradford, East) Shakespeare, G. H. Gray, Frank (Oxford) Jowitt, W. A. (The Hartlepools) Short, Alfred (Wednesbury) Grenfell, D. R. (Glamorgan) Kenworthy, Lieut.-Commander J. M. Sitch, Charles H. Groves, T. Lawson, John James Smith, T. (Pontefract) Grundy, T. W. Leach, W. Stephen, Campbell Guest, Hon. C. H. (Bristol, N.) Lunn, William Sturrock, J. Leng Guthrie, Thomas Maule Maclean, Neil (Glasgow, Govan) Sutherland, Rt. Hon. Sir William Hall, F. (York, W. R. Normanton) Millar, J. D. Thomson, T. (Middlesbrough, West) Hall, G. H. (Merthyr Tydvil) Morris, Harold Tout, W. J. Trevelyan, C. P. Welsh, J. C. Young, Robert (Lancaster, Newton) Turner, Ben Westwood, J. Walsh, Stephen (Lancaster, Ince) White, H. G. (Birkenhead, E.) TELLERS FOR THE NOES .—Mr. Phillipps and Major McKenzie Wood..—Mr. Phillipps and Major McKenzie Wood. Watson, W. M. (Dunfermline) Whiteley, W. Watts-Morgan. Lt.-Col D. (Rhondda) Williams, T. (York, Don Valley)
On a point of Order. An arrangement has been entered into. Is the Government now deliberately intending to stray away from that agreement.
That is not a point of Order.
I think it would be well if at this particular moment——
We must have the point settled one way or the other. Does the hon. Member wish to move or not?
NEW CLAUSE.—(Stamp Duty on leases.)
The Stamp Duties chargeable under the heading "Lease or Tack," in the First Schedule to the Stamp Act, 1891, as amended by Section seventy-five of the Finance (1909–10) Act, 1910, shall as from the commencement of this Act continue to be chargeable, subject to the following modifications:
If the term does not exceed 35 years or is indefinite. s. d. Where the rent is at a rate or average rate— Exceeding £10 and not exceeding £20 0 3 Exceeding £20 and not exceeding £30 0 6 Exceeding £30 but not exceeding £50 1 0
—[ Mr. T. Johnston. ]
Brought up, and read the First time.
I beg to move, "That the Clause be read a Second time."
I am placed in a position of some difficulty. I have no desire to be a party to breaking any agreement that has been come to between officials of my party and the representatives of the Government side. But I do want a definite assurance that we shall we allowed to move these Amendments upon the Report stage. Can I have an assurance from the Prime Minister?
I do not know whether I may now appeal once more to the Committee to allow us to report this Bill. Ample time shall be given for the Debate on the Report stage in the light of what has taken place this evening. It will be possible to debate at reasonable length the Clause which has just been added to the Bill. In the light of the charge which has been made, I regret to say, against the Government——
Quite right!
I feel I owe it to that section of the House to see that ample time is given on the Report stage for such discussion. I hope very much that the Committee will find itself in agreement with me in what I have said.
I want to ask one question on that. What is the Government's intention on this Clause which has been added to the Bill? We have had practically no opportunity of discussing it in Committee, because the moment the Question was put the right hon. Gentleman moved the Closure, or, rather, he claimed the Original Question. What is proposed to be done? Does the right hon. Gentleman propose to put down a Government Amendment to delete this Clause? [HON. MEMBERS: "No!"] Apparently, those behind him are the tail that wagged the dog. I am talking to the dog. Will he see that a proper discussion takes place on this rather important Clause, which has not received the attention that it deserves?
2.0 A.M.
I recognise the way in which the Prime Minister has appealed to the Committee to allow the Bill to be reported, and I am quite prepared to accept his assurance that, as far as he is concerned, opportunity will be offered to discuss the various questions outstanding, particularly the Clause with which we last dealt. At the same time, I may observe that on the Clause upon which the Committee has just decided, there was a second opportunity of dealing with a matter in regard to which we believe that, not only has a misunderstanding arisen, but what we, rightly or wrongly, regard as a breach of faith. That opportunity was given to the House by the form, "That the Clause be added to the Bill." I had intended to make an appeal to the Prime Minister, but I was ruthlessly closured in a way that I think is unexampled in the history of this House.
That is a reflection on the Chair. I must ask the hon. Member to withdraw it.
If I withdraw it, it is simply for the purpose of putting a Motion to that effect on the Order Paper. I am surprised that the right hon. Gentleman, with his Parliamentary experience, should have resorted to these methods. There is, however, one advantage in reporting Progress. The Leaders of the Opposition will be here and it will be possible for them to have some intelligible guidance on a future occasion. It is largely due to the absence of the leaders of the Opposition that the situation has arisen. Had they been here and had they not been left to the tender mercies of the hon. Member for Central Newcastle (Mr. Trevelyan), a different issue might have arisen.
On a point of Order. Is it in order for an hon. Member behind, who is perfectly cognisant of the fact that all the trouble which took place to-night is due to the fact that he himself, with irresponsible elements in the Committee, broke the agreement that was come to honourably by the hon. Member for Central Newcastle (Mr. Trevelyan), who is absent, and by the leaders of the Government, to pass reflections on him?
I think it would be more relevant if the hon. Member did not pass any reflection on any Member of this House.
The only reflection I passed on any hon. Members was purely a reflection on his conduct, and not upon his morals. [ Interruption. ] I am prepared to leave the matter there. The undue sensitiveness of the Members before me is a well-known matter. They are the chartered libertines of the House, and when anyone offers a remark on their conduct, it is almost impossible to get a hearing. I intend to adhere to what I said. It will be an advantage when the hon. Member for Aberavon (Mr. Ramsay MacDonald) and the hon. Member for Central Newcastle (Mr. Trevelyan) are here to guide their followers. [HON. MEMBERS: "The Member for Paisley."] The National Liberal party is usually in competent hands in the absence of its leaders. Having made all the observations I wish to make, I am quite willing to assent to the proposition.
Question, "That the Clause be read a Second time," put, and negatived.
Motion made, and Question proposed, "That the Bill, as amended, be reported to the House."
Can I have an answer to my question?
I want to ask the Prime Minister a question about this. I agree with my hon. Friend the Member for Penistone (Mr. Pringle) as to what has happened. What has happened is that the discussion was curtailed because the Government announced that they would reject the Amendment. [HON. MEMBERS: "Do not begin it again!"] After discussion had been curtailed in that way, a Division was organised, not by the Government Whips, but through the Government—[HON. MEMBERS: "No!"]—in the course of which, though afraid themselves to take the lead, they secured their end through others. There is no question about that. They took advantage of the claim that was made by some Members of the Opposition not to permit an Amendment to be withdrawn, but to demand that it should be negatived. That is constantly done. They took advantage of that and carried it. That is really a fair account of what took place. What I wanted to ask the Prime Minister was this: On account of this happening, concerning which the language of my hon. Friend the Member for Penistone has not been one whit too strong, a large number of Members are not being called, and the Bill is to be reported to the House without the Amendments being called at all. The Prime Minister said that that being the case, when the Report stage comes on, they will have special consideration. I want to point out to him that some hon. Members have reserved Amendments for the Report stage which have not even been moved on the Committee stage. Will consideration be shown to those Amendments? They might have been put down on Committee stage, but desirous of saving the time of the House, hon. Members did not do so. I had such an Amendment myself and was anxious to save the time of the House. I wish to ask the Prime Minister whether these Amendments will receive time for proper consideration from the Government on the Report stage of the Bill?
The selection of Amendments rests with Mr. Speaker, but I undertook, and I will keep the undertaking, that I will give sufficient time for a discussion of the Amendments on the Report stage, which will be a much better time.
I do not think the right hon. Gentleman meant to overlook my question, but might I ask him again, respectfully, if he will inform me how he intends that there should be a discussion on this new Clause? Are the Government putting down an Amendment to delete it? There must be some Amendment put down, and unless it be a Government Amendment we have no certainty that Mr. Speaker will call it.
There might be a Motion put down to omit the Clause. Mr. Speaker always senses the opinion of this House quite as well as we do, and although I am not able to commit Mr. Speaker, I cannot imagine that he will not recognise it.
rose ——[HON. MEMBERS: "Divide!" and continued interruption. ]
Question, "That the Bill, as amended, be reported to the House," put, and agreed to.
Bill reported; as amended, to be considered upon Monday next, and to be printed. [Bill 168.]
The remaining Orders were read, and postponed.
It being after half-past Eleven of the Clock upon Tuesday evening, Mr. DEPUTY-SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.
Adjourned at Fourteen Minutes after Two o'clock a.m.