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Commons Chamber

Volume 179: debated on Thursday 18 December 1924

House of Commons

Thursday, December 18, 1924

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

Private Business

Buckhaven and Methil Burgh Order Confirmation Bill,

Read a Second time; and ordered to be considered To-morrow.

Dumfries and Maxwelltown Bridge Order Confirmation Bill,

"to confirm a Provisional Order under the Private Legislation Procedure (Scotland) Act, 1899, relating to Dumfries and Maxwelltown Bridge," presented by Colonel Sir JOHN GILMOUR; read the First time; and ordered (under Section 9 of the Act) to be read a Second time upon Tuesday, 10th February, and to be printed. [Bill 14.]

Oral Answers to Questions

Naval and Military Pensions and Grants

Appeals

asked the Minister of Pensions if he proposes to introduce legislation authorising appellants who have allowed their one year of right of appeal to pass to secure the reopening of their cases; and whether, if he has not decided on this policy, he will leave the matter to the free vote of the House?

I would remind my hon. Friend that, as was stated in reply to a question by the hon. and gallant Member for the Hulme Division of Manchester on the 11th instant, arrangements are already in effective operation whereby cases, in which an appellant has been prevented by some unavoidable cause from appealing within the statutory year of appeal, are put to the appeal tribunals. I would further point out that, as regards cases of disputed title to pension (whether an appeal was made within the statutory period or not), arrangements are in force whereby all cases in which additional evidence is furnished are fully considered; and that, as regards cases of assessment for final award, where medical observation and treatment disclose the fact that the award has been erroneously declared final, amendment of it can be effected. Cases are being satisfactorily dealt with under these arrangements, though experience will, no doubt, show whether they are susceptible of improvement. In the circumstances, my right hon. Friend does not think that legislation is called for. The suggestion in the last part of the question is not a matter for my right hon. Friend.

Is the hon. and gallant Gentleman aware that the appeal tribunal refuses to hear cases, however strong the cases may be, because 12 months period has elapsed?

It is always put to the appeal tribunal if the man concerned presses, but it is for them to say whether they accept it or not.

Will the hon. and gallant Gentleman consider cases which have arisen very largely through ignorance on the part of the men, that it is necessary to appeal within a year? I am sure there is no wish to take any advantage of the ex-service men.

There is no intention to take advantage of them. I am answering a question on that subject later. The men are informed that they have to appeal within a year if they wish to exercise their rights.

asked the Minister of Pensions whether he is aware of the feeling of Pension Committees that the time limit on appeals in connection with final awards should not apply in any case where a statutory award was made before the 19th August, 1921, having regard to the fact that no individual notice was sent direct to the pensioner informing him of his right of appeal in these cases; and will he take steps to abolish the application of this time-limit where no individual notice has been served upon the pensioner?

asked the Minister of Pensions whether he is aware of the number of pensioners who received final awards from the Ministry but were not personally informed of the time-limit within which they were entitled to appeal other than by the statutory notice in the Press, which a number of them failed to see, and have consequently been debarred from appealing to the pensions appeal tribunals; and whether he will take such steps as may be necessary to enable bona-fide cases, which are out of time owing to the pensioner having failed to see the Press notice, to be reinstated for hearing by the appeal tribunals?

The right of appeal in these cases is limited by Statute, and my right hon. Friend has no authority to modify this. It was not practicable at the time, nor would it be so now, to serve individual notice upon all the past cases of the class referred to, for the reason that the Ministry has not necessarily any knowledge of the men to whom compensation has ceased to be payable. The fullest publicity possible was, however, given by the Ministry to the right of appeal in these cases, not only by the statutory notice in the Press, but by posters and other forms of advertisement. In this connection, I would refer to the very full answer given by the late Minister of Pensions, the right hon. Member for West Bromwich, to the hon. Member for West Ham on 31st July last. At the same time, I would remind the hon. Gentleman that, as has already been stated in the House, arrangements are in operation to put to tribunals all cases in which the appellant can show that on account of illness, or other unavoidable cause, he was prevented from exercising his right of appeal within the statutory period, and for this purpose the circumstances of each case are determined on its merits. Concurrently with these arrangements, effective steps are taken to deal with exceptional cases in which it is found that error has occurred in the making of the final award.

asked the Attorney-General the number of appeals submitted to the appeals tribunal by appellants who have exceeded the allotted year wherein to make such appeals, and the number of cases in which their explanations have been accepted as valid and their cases heard?

Up to the 8th December the number of appeals submitted to the Pensions Appeal Tribunals for England and Wales by appellants who have exceeded the statutory time for appealing is 3,142. In 2,605 cases the tribunals found that they had no jurisdiction to hear the merits of the case, and in 521 cases the appeals were heard. In 16 cases the appeals were withdrawn by the appellants. Where the appeals were heard either no evidence was offered that the claim was out of time, or the tribunal was not satisfied, on the evidence placed before it, that the appeal was, in fact, out of time.

Travelling Expenses

asked the Minister of Pensions whether he will investigate the possibility of issuing railway travelling warrants and the payment of expenses to the legal adviser or friend who is permitted to accompany persons appealing against the Ministry of Pensions' decision in order to secure that every case will be fully represented without unnecessary expense to the person appealing?

asked the Minister of Pensions if, in view of the opinion expressed by many advisory councils that the expenses of a relation or friend accompanying pensioners before the appeal tribunal should be allowed, he will reconsider this matter, as, in the absence of such assistance, the appellant is often unable to do justice to his claim?

My right hon. Friend regrets that he is unable to adopt the suggestion. It has always been the duty of the tribunal, under the rules made by the Lord Chancellor, to assist any appellant who, through ignorance or otherwise, is unable to make the best of his case. Moreover, the tribunal is empowered at its discretion to summon before it expert or other witnesses to give oral evidence and to pay their expenses. Any extension of these provisions in the direction, suggested would be a matter affecting the rules of procedure of the tribunals, and, consequently, for the consideration of the Lord Chancellor.

Will the hon. and gallant Gentleman make representations to the Minister that facilities already given for assisting the pensioner have proved to be inadequate, and that when the pensioner goes before the appeal tribunal, unless he has someone with him to state the case, he does not get a full statement put before the appeal tribunal? It is a most serious matter. Will the Minister reconsider it?

If the hon. Member will study my reply, he will see that it is a question for the Lord Chancellor. The Ministry's officers have nothing to do with it.

Advisory Councils

asked the Minister of Pensions if he will state the chief recommendations made by the different advisory councils of his Department and indicate at the same time whether he has accepted and acted on any of them, and, if so, on which?

A large number of resolutions have been received from advisory councils which, however, my right hon. Friend has not yet had an opportunity of fully considering. I will add, however, that my right hon. Friend is making arrangements to summon a meeting of his central advisory committee towards the end of January, when he will take the opportunity of consulting them on points which have been raised.

Awards (Date)

asked the Minister of Pensions whether it is the practice of his Department to date an award of pension from the date on which it is determined the man's condition justifies that award, or from the date of the finding of the tribunal; and whether, having regard to the hardship in many of these appeal cases, he will give instructions that the award, in the case of a successful appeal, shall be given as from the date on which the appeal was lodged?

In every case where the decision of the tribunal is to grant an increased award, payment is made from the date the appeal was lodged, and not from the date of the tribunal's decision.

Pensions (Increase) Act, 1924

asked the Minister of Pensions when the Royal Warrant embodying the Pensions (Increase) Act, 1924, as it applies to pre-War disability pensions, will be issued; and if he will state the cause of the delay?

The preparation of the Warrant referred to has been delayed by technical difficulties, but it is hoped to issue it very shortly. In the meantime, the cases likely to be affected by the Warrant are already in hand.

Mental Cases (Maintenance Charges)

asked the Minister of Pensions whether, seeing that the charge for a pensioner suffering from mental instability due to War service in a Ministry institution is £3 10s. a week and that the county mental hospital, Colney Hatch, New Southgate, and other institutions under the London County Council Mental Hospitals Department only charge 22s. 9d. per week, it is possible to effect any reduction in the charge made in the Ministry of Pensions institution; and whether, seeing that in-patients, other than mental, under treatment in Ministry of Pensions institutions are only charged 19s. a week for maintenance, he will take steps to amend Article 6 of the Royal Warrant of 1919, which provides that in the case of a lunatic the total cost of his treatment shall be paid before he receives any treatment allowances?

I am not clear what institution the hon. and gallant Member has in mind. If he refers to the institution at Kirkburton, I am glad to be able to inform him that the cost of maintenance is not so high as he assumes. The cost of maintenance is now 52s. 6d. a week in that institution as compared with 28s. 3d. in Colney Hatch. The cost of maintenance in institutions for those mentally defective necessarily varies according to the character of the arrangements for medical treatment provided for the cases, and the cost both at Kirkburton and the other mental institution (of which the expense is borne by the Ministry), both of which are provided for special types of cases, is, on this account, necessarily somewhat higher than the average. The provisions of Article 6 of the Royal Warrant referred to in the last part of the question, apply only to certified cases which have no wife, child, or other person dependent upon them.

Area Office, Gateshead

asked the Minister of Pensions whether he has under consideration the closing of the area office at Gateshead; if so, whether action may be deferred until the local area committee has been asked for its opinion; whether it is proposed to reduce further the number of area pension offices throughout the country; what was the number of area offices on 31st March, 1924; and what will be the number on 1st April, 1925?

There is no proposal to close the area office at Gateshead. With the reduction in the volume of the Ministry's work, consideration has necessarily to be given to the question of amalgamating the staffs in area offices. The number of area offices on the 31st March, 1924, was 142. It is possible that this number may be slightly reduced by the 1st April, 1925.

Widows' Pensions

asked the Minister of Pensions the number of pensions that have been awarded to widows whose husbands died while in receipt of a pension for a disability assessed at 40 per cent. or over during the past 12 months; and what is the number of claims for pensions from widows whose husbands died while in receipt of a pension based on an assessment of 40 per cent. or over that have been rejected during the same period?

The records of the Ministry do not enable the precise information required to be given. As to the operation of Article 17 of the Warrant of the 14th January last, generally, I may, however, refer the hon. Member to the answer given to the hon. and gallant Member for Fairfield on the 15th instant, of which I am sending him a copy.

Is the hon. and gallant Member aware that the House was led to believe, last January, that a pension would be granted to the widow in all cases where the pensioner died while in receipt of a pension of 40 per cent., but that, in fact, they are only granted where it is proved that the man's death was accelerated by his disability?

I am not aware of what the House was given to understand last year, because I was not here. We were not responsible for the administration. I can only repeat the answer I have given. If the hon. Member has any specific case in mind and he will give me particulars, I shall be glad to look into it.

Treatment Allowances

asked the Minister of Pensions if he is aware that numbers of ex-service men who are certified by panel doctors as totally unfit for work and recommended to see the Ministry medical officers are being returned by the latter for treatment by their panel doctors and are not receiving any treatment allowances, although they are unfit for work; and will he take steps to see that these men receive allowances according to their disability?

I would remind the hon. Member that medical certification for the purpose of Health Insurance Acts and for the grant of allowances under Article 6 of the Royal Warrant, respectively, are governed by wholly different conditions and directed to wholly different purposes. Allowances under the Royal Warrant are, by the terms of the Warrant, payable only when it is certified by a medical officer of the Ministry that the course of treatment considered necessary in the man's interests is such as to prevent the man from providing for his own support and that of his family.

Is the hon. and galant Member not aware that the panel doctor, having certified the men as unfit to follow their employment, and the Ministry's doctors having stated otherwise, full advantage is being taken by the Ministry's medical officers to deprive these men of what they are entitled to.

It is perfectly obvious that where money has to be administered by a particular Minister, he must depend upon the report of his medical officer, where that is essential, as to the course that is to be pursued.

Government Departments

Ministry of Pensions (Acton Staff)

asked the Minister of Pensions what is the staff capacity of the Pensions Issue Office at Acton; and how many are employed at that office at present by his Department?

I understand from my Noble Friend the First Commissioner of Works that the Government premises in Bromyard Avenue, Acton, can accommodate from 5,000 to 6,000 staff, according to the class of work they are performing and the bulk of their records. The Ministry of Pensions staffs accommodated in portions of those premises amount at present to 4,047.

Is there not great competition to be admitted into this Department in this very healthy district?

I can quite understand there being competition to get into a district represented by the hon. Member.

Inland Revenue (Temporary Clerks)

asked the Chancellor of the Exchequer whether he is aware that over 180 temporary clerks in the service of the Valuation Office of the Board of Inland Revenue, who first entered that service within the period 1910–14, have been graded with, and are paid the salaries appropriate to, post-War temporary clerks, and that the duties on which they are engaged are of a permanent nature; and will he take steps to ensure that paragraph 8 of the final Report of the Re-organisation Committee, dated 28th January, 1921, which states that pre-War temporary officers engaged on duties of a permanent nature are entitled to immediate absorption in the establishment without being required to sit for the limited competitions for temporary clerks, shall be put into effect?

The pre-War temporary staff referred to numbers approximately 160. The grading of these officers for purposes of pay follows the terms of a formal agreement to which representatives of their association were signatories. The question of establishing members of the pre-War staff is under consideration.

Is the right hon. Gentleman aware that nearly all of these officials are ex-service men or ex-officers, and that one's natural sympathy with their claim and their case is strengthened by the fact that the ex-chairman of the Board of Inland Revenue recognised the validity of their claim?

I can only say it is under consideration. They are pre-War clerks, and they had certain recommendations on their case in the Re-organisation Committee, but as those recommendations were framed at a time when it was anticipated that there would be a larger Civil Service than it has since been found possible to retain, obviously the whole thing has to be reconsidered.

Will the hon. Gentleman give an assurance that he will look up the files and see what the late chairman of the Board of Inland Revenue said with reference to these men's claim?

Pensions

asked the Financial Secretary to the Treasury on what basis broken periods of years service are dealt with in the calculation of Civil Service pensions; if they are ignored; and whether he will consider altering the practice in the interest of the pensioner?

Civil Service pensions are, in accordance with the scales embodied in the Superannuation Acts, computed on completed years of service only, and I do not consider any alteration in the law to be necessary.

Will the right hon. Gentleman follow the example of the Air Force in this matter, and allow those who have rendered service to benefit by the period served, even though it may be uncompleted years?

Questions

Assaults on Children

asked the Secretary of State for the Home Department how many cases of assault or of sexual offences committed in regard to children and girls below the age of 16 were reported to the police in England, in Scotland, and in Wales, respectively, during the last four years; in how many of these cases convictions were obtained; how many children were concerned in these cases; how many of the children were below the age of five years; and in how many of these cases there were records of previous convictions for similar offences?

No such figures as the hon. Member desires are available, but a Committee is at present inquiring into the whole subject of sexual offences committed on young persons and when it has reported we shall, no doubt, know more.

Is my right hon. Friend aware that in the last Parliament figures were given?

I was not aware of that fact, but as my hon. Friend says so I will have the matter looked into.

Will the right hon. Gentleman consult his colleague, the Secretary for Scotland, on this question and have the Committee extended to include Scotland?

Aliens

Permits to Land

asked the Home Secretary the number of aliens admitted into this country up to the end of November this year as compared with those admitted up to the end of November last year?

Published Returns show that the number of aliens who were given leave to land in this country during the first three quarters of the present year was 321,451. The corresponding figure in 1923 was 259,943. It is to be remembered that large numbers of aliens came this year to visit the Wembley Exhibition and that, as against the figure of 321,451 landings, there has to be set already, for the same period, a figure of 311,576 departures, and experience shows that departures increase during the latter months of the year.

Can the right hon. Gentleman say whether the numbers are growing less now?

Has the visit of these aliens to Wembley not resulted in a lot of extra business?

I think that those aliens who were in a position to do business benefited by their visit to Wembley.

Indictable Offences

asked the Home Secretary whether he is aware that out of every 59 persons convicted of indictable offences in 1922, one was an alien; and whether, by administrative order or, if necessary, by legislation, he will propose that deportation be the penalty imposed upon every convicted alien?

I am not aware of any available figures on which the statement in the first part of the question could be based. I may say, however, that statistics of the number of receptions into prison in England and Wales during 1922 of persons convicted of indictable offences show that in one case out of every 68 the person was an alien. I am afraid that I could not adopt the proposal in the second part of the question, but I may point out that the Courts have power in the case of most serious offences to recommend the convicted alien for deportation, and that every possible effort is made, as a rule, to give effect to such recommendation, and that in many other cases deportation orders have been made where the public interest has justified such a course against aliens not so recommended, in pursuance of the general power vested in the Secretary of State by Article 12 (6) ( c ) of the Aliens Order, 1920.

asked the Home Secretary the numbers of naturalised aliens and unnaturalised aliens, respectively, convicted in the Courts of this country during the years 1922, 1923 and 1924; and a similar return in connection with judgments in the Civil Courts?

No, Sir, I have no such figures. The only relevant and available information I can give is as to the number of receptions of convicted aliens in prisons in England. Wales and Scotland. During 1922, 1,048 such prisoners were received in England and Wales, and 104 in Scotland. During 1923, 1,115 were received in England and Wales. I cannot at the moment give the Scottish figures for 1923; and no figures for 1924 are yet available.

Local Authorities (EmployéS)

asked the Minister of Health whether he has any information as to the extent to which aliens are employed by local authorities?

I regret that I have no information on this subject, but I should doubt whether there is any appreciable number of aliens employed by local authorities.

( reading a M.S .): Will the right hon. Gentleman consider the desirability of issuing instructions to local authorities that no person who is not a British subject should be employed by them, and——

As the hon. Member's question appears to be already in writing, it had better be handed in at the Table.

Questions

Communist Sunday Schools

asked the Home Secretary whether he is aware of the character of the teaching now given to children in proletarian and Communist Sunday schools; and whether he will take action in the matter so as to protect children from such influences?

My Department has received a number of representations in regard to these institutions, and they will be duly considered, but I cannot at present forecast any action which it may be found expedient to take.

What is meant by this word "proletarian?" Is not the proletariat the working class?

I do not carry a dictionary with me, but no doubt the hon. and gallant Gentleman will find one in the Library.

I did not say that any inquiries were being undertaken. My answer was that representations had been received and were being, considered.

Before I commit myself, I must have time to consider the matter.

asked the Home Secretary if he can state the number of places where Communist Sunday school teaching is carried on in London and other parts of the United Kingdom?

I presume my hon. Friend has in mind the children's sections of the Young Communist League and the Proletarian Schools, but I hope he will not press me to publish the particulars which are in my possession.

Would the right hon. Gentleman consult the President of the Board of Education with a view to having inspectors appointed to visit these schools and report upon the teaching?

I will consult with the President of the Board of Education, but I cannot pledge myself as to whether he will take any action.

Is it not a fact that all the information is available in the offices of the Primrose League?

I believe that that excellent organisation has very full information.

Police

Dismissals (Committee of Inquiry)

asked the Home Secretary whether he can give the Report of the Committee of Inquiry which was set up on 4th July of this year to investigate the case of the dismissed police and prison officers?

I would refer the hon. and gallant Member to the answer I gave on Tuesday to a similar question by the hon. Member for the Stratford Division.

It has been laid in dummy, and I hope will be ready to-morrow, though I am not quite sure. The report will be printed as soon as possible.

War Bonus

asked the Home Secretary whether he will give a list of the local authorities who have not yet paid the war bonus to their police forces; for how long payment has been withheld; and what steps he proposes to take to bring defaulting authorities into line with those who have paid?

There are only two forces in England and Wales, namely, the Cardigan County and the Tyne River Police, where no payment has been made by way of bonus. In another case the bonus was paid for only half the period for which the scheme was in operation, namely, from October, 1920, to September, 1921. In the case of the two county forces a deduction has been made from the Exchequer Grant, but in the case of the Tyne River Force there is no Exchequer Grant, and I am not in a position to take any similar action.

In the case of a local authority which may not have fulfilled its obligation in this respect, will the Home Office or the Exchequer make up to the men the amount of which they have been deprived by the local authority?

White Overalls and Gloves

asked the Home Secretary whether he is in favour of serving out white overalls or white gloves to constables on point duty; and, if so, how many are so equipped?

White gloves are supplied to all constables engaged on traffic duty in the Metropolitan police district, but white overalls are considered unnecessary.

Would not the right hon. Gentleman, who is himself well acquainted with motoring needs, consult with his colleague the Minister of Trans port on this subject?

I am always only too ready to consult my colleague the Minister of Transport.

Women Police

asked the Home Secretary whether he will consider the appointment of women police for special duty on Mitcham Common?

The Commissioner of Police is of opinion that at the present time the women police can be better employed elsewhere. The matter is one which I must leave to his discretion.

asked the Home Secretary whether he proposes to increase the number of women police in the Metropolitan Police Force, and to carry out the other recommendations made by the Committee recently appointed to report on the subject?

As already stated in reply to a question on 11th instant, steps are being taken to increase the number of Metropolitan police women to 50. The Committee's recommendations have been brought to the notice of all police authorities and most of them deal with matters which I must leave to the local authorities' discretion.

Questions

Murder Statistics

asked the Home Secretary the number of murders known to the police from the end of 1905 to the present time; the number of persons brought to trial; the number of persons sentenced to death; and the number of persons executed in connection with those murders?

I am sending to the hon. Member a Table giving the relevant figures.

Housebreakings and Burglaries

asked the Home Secretary whether, in view of the epidemic of burglaries, especially in May-fair, he can see his way to offer a reward to private citizens who may be instrumental in the detection or capture of the guilty parties?

No. There are serious objections to offering rewards in such circumstances.

asked the Home Secretary whether his attention has been called to the large number of burglaries that have taken place recently; whether any arrests have yet been made; and whether, since it is not advisable that full descriptions of persons assumed to have taken part in the same should be published in the Press, he will give instructions that such particulars be withheld from publication?

As the answer is a long one, I will, with the hon. and gallant Gentleman's permission, circulate it in the OFFICIAL REPORT.

Following is the answer:

The number of housebreakings and burglaries that have been committed during the months of October and November is not appreciably in excess of the number that was committed during the corresponding period of last year. Nor have these offences been more numerous during this month than they were during this time last year. During the period of fog last week several cases of housebreaking occurred in the vicinity of Park Lane and Mayfair; these were effected by the thief or thieves gaining access to the premises by climbing a stack-pipe, or some other similar means. Some of the offences of this description have been committed with particular daring and for this reason much has been made of them by the Press. This method of committing crime is not new. Three persons have been arrested, and two of them have been found in possession of a large quantity of jewellery and other articles, part of which has been identified as proceeds of five cases of housebreaking, etc., and some of these offences were committed by the person or persons who have been designated by the Press "cat burglars." The police sometimes find it necessary to issue to the Press descriptions of persons who are wanted for offences, but such descriptions are given only by the responsible police authorities after due consideration. I do not think it would be wise to give instructions that such particulars should be withheld from publication.

I may add that this morning a burglar in possession of housebreaking tools and operating in the same manner as the so-called "cat burglar" has been caught in Westminster and will be duly charged.

Lottery Acts

asked the Home Secretary whether he will consider bringing forward legislation to amend the Lottery Acts, whereby schemes promoted for benevolent and charitable purposes which have inadvertently contravened the law may be permitted to complete the draw, provided the promoters are able to satisfy a duly constituted authority as to the bona fides of the object of which the lottery is in aid?

I do not see my way to initiate any legislation on the subject, and I doubt if any legislation is required in the public interest.

asked the Home Secretary whether he has issued any special instructions affecting police action in connection with Christmas draws; and, if not, will he do so with a view to securing a uniformity of policy throughout the country?

No general instructions have been issued by my Department as to the action of the police in connection with Christmas draws, but the attention of the force concerned has been called to cases which have been brought to the notice of the Home Office. Such schemes would appear to be in contravention of the Lottery Acts, and to issue any directions relieving parties acting in contravention of the law in such cases at Christmas time would be improper and inadvisable. The police authorities may well be left to exercise their general powers in regard to such cases.

Is the right hon. Gentleman aware that the police regard the law with regard to lotteries as very unsatisfactory? The law was made 100 or 200 years ago. Cannot we have legislation to amend it, to bring it into line with modern thought?

In view of the short time I have been in office I am not in a position to start any legislation on this very thorny question.

Is it not the case that representations are made to the police by civilians, and that otherwise the police do not take action? Is not that the failure of the law? Is it not unfair handling? Do not prosecutions follow only where representations are made against a particular organisation?

May I ask whether a lottery taking place in a Royal palace is illegal?

asked the Home Secretary if it is the intention of the Government to introduce legislation dealing with the question of sweepstakes?

May I take it there is no truth in the rumour that the Government regard sweepstakes as being highly immoral?

I said in answer to the question that, as at present advised, I do not propose to bring in any legislation on the subject

Criminal Assault Clerkenwell

asked the Home Secretary whether his attention has been called to the case of George Clarke, who was sentenced last week to six months' imprisonment at Clerkenwell for a criminal assault on a girl of five years of age; and whether he can assure the House that inquiries will be made into the mental condition of the prisoner before his sentence expires and he is again at large?

This man's mental condition is now under the special observation of the medical officer of the prison to which he was committed with a view to any action which it may be necessary to take in the light of the medical officer's report.

First Offenders (Letters)

asked the Home Secretary whether he will grant facilities to enable prisoners who are first offenders to send or receive one letter weekly from the time of sentence until discharge?

The frequency with which letters are now allowed to prisoners depends on their classification, and first offenders receive treatment according to the division in which they have been placed by the Court. I would point out that first offences vary considerably in degree of gravity, and that all first offenders are not entitled to special privileges.

Will this question be made the subject of inquiry by the Committee which the right hon. Gentleman is going to set up to consider prison reform; and, further, has the right hon. Gentleman any intention of announcing the names of that Committee at an early date?

This point will, I have no doubt, be considered by the Committee. With regard to the personnel of the Committee, I have sent out letters to-day asking various persons to join, and I hope to be able to announce the names very shortly.

Forestry Commission

asked the Prime Minister which Member of his Government is responsible to the House for the administration of the Forestry Commission: and, if this Commission does not at present come under any Minister, whether he will consider the convenience of the House by placing it under the charge of one of his Ministers so that questions upon its administration and its expenditure of public money can be brought properly before the House?

No Minister is directly responsible to the House for the administration of the Forestry Commission, which is a statutory body under the Forestry Act, 1919. My hon. Friend the Member for Monmouth (Mr. Forestier-Walker) has been appointed under Section 1 (6) of that Act an unpaid member of the Commission, and questions upon the administration of the Commission and its expenditure of public money may be brought before the House by questions addressed to him. The Treasury is, of course, responsible for the Estimates laid before the House.

Will the hon. Gentleman, to whom the Prime Minister refers, answer questions which are addressed to him, as in the past questions addressed to members of that Commission have been ignored by them, and they have taken upon themselves to answer just if they like?

I think the hon. Member is under a misapprehension, because I remember distinctly questions being answered by the Forestry Commissioner. Of course it is his duty to answer any questions which may be put down.

Zinovieff Letter

asked the Prime Minister whether Mr. A. McManus, one of the alleged signatories of the so-called Zinovieff letter, was called before the Cabinet Committee to give evidence as to its authenticity or otherwise; and, if not, will he state the reason for the omission of this important witness?

I have nothing to add to the statement with regard to the Zinovieff letter which I made in the course of the Debate on Monday.

With great respect, the right hon. Gentleman did not deal with that aspect of the case in his reply. Would he mind giving me an answer to my question?

I stated on Monday all I thought it desirable in the public interest that I should say, and I announced that it was all I was going to say. I must ask the House to permit me to maintain that attitude.

May I ask the right hon. Gentleman, as the Government are absolutely convinced of the authenticity of this letter and as the letter has been signed by a British subject, whether the Government intend to take proceedings against that British subject for signing a treasonable document?

It is no part of my case, and I have not alleged one way or the other that the signature of Mr. McManus to that letter was or was not affixed by himself. The Government are satisfied of the genuineness of the letter. I have said all I can say and all I will say as a responsible Minister upon the evidence which convinced me.

As the public has given its verdict on the matter without the evidence, might not the public now be furnished with the evidence?

No, Sir. It is quite impossible to produce this evidence, as the right hon. Gentleman will learn from the Leader of the Opposition who is sitting beside him.

On a point of Order. If a question is permitted by you, Mr. Speaker, to be placed on the Order Paper, is it not, at any rate, the custom of this House, as I believe it is the rule, that an answer must be given unless it is stated that it is not in the public interest to do so. In this case, the right hon. Gentleman has not stated that as the reason for refusing the information. I asked him whether a witness was called before a certain Cabinet Committee, and is it not in order for me to press for an answer, and must not an answer be given?

Before you answer that question, Sir, may I say, speaking with full responsibility, that I think it is contrary to the public interest that I should make any statement as to the witnesses who were heard by that Committee?

Apart from that, I have often answered the hon. and gallant Member's question. Members may ask questions, but there is no law to compel Ministers to reply.

Arising out of that point of Order, as applied by the Foreign Secretary, may I ask, since it is not in the public interest to disclose whether or not McManus was invited to attend, can anything be done in regard to the public interest, to prevent McManus himself saying whether he was invited to attend or not?

It is a matter of perfect indifference to me whether he makes any statement or not.

Arising out of the supplementary answer of the Foreign Secretary, may I ask whether he has any doubts as to the authenticity of McManus's signature to that letter?

Wheat Stocks

asked the Prime Minister whether his attention has been drawn to the fact that the French Government has included in the Army Estimates an additional credit for 150,000,000 francs, to be used ostensibly for the creation of a stock of army wheat, but really of a stock to be utilised as a weapon against grain speculators, with a view to stabilising wheat and flour prices; and whether he is prepared to take action on somewhat similar lines in this country?

I have been asked to reply. My attention has been called to a statement that the French Government has included in the Army Estimates an additional credit for 150 million francs for the creation of a stock of wheat for army purposes, but I have no knowledge in regard to the correctness of the further suggestions contained in the hon. Member's question. In view of the fact that a Royal Commission is investigating the whole question of food prices, and has been asked to submit an Interim Report on wheat, I am not prepared to anticipate their deliberations.

Education

Manual Instructors

asked the President of the Board of Education how many manual instructors are employed in elementary schools; how many of these give instruction in metal-work and woodwork; whether they are skilled craftsmen who have served an apprenticeship to the trades they teach; and, if not, will he say what experience and qualifications are necessary for those appointed to the position of manual instructor?

As the answer to the hon. Member's question is rather long, I will, with his permission, circulate it in the OFFICIAL REPORT.

The answer is as follows:

The number of manual instructors employed in public elementary schools and centres in England and Wales was, on the 31st March, 1023 (the latest date for which any figures have been tabulated) about 1,950. I have no figures showing how many of these instructors gave instruction in metal-work and woodwork; but I understand that the great majority of them taught the latter subject. With regard to the third and fourth parts of the question, manual instructors in elementary schools are not employed to teach trades, but to give general instruction in handicraft. Before sanctioning their appointment, the Board require to be satisfied that they have sufficient skill in handicraft for this purpose. The qualifications now required for future appointments are that the candidate should either have completed satisfactorily a course of training in handicraft, or should have passed an examination in handicraft conducted by the City and Guilds of London Institute. In addition, he is expected to have passed an examination qualifying him for recognition either as a certificated or as an uncertificated teacher.

School Leaving Age

asked the President of the Board of Education whether he will consider taking steps to give effect to the Clauses of the Education Act, 1918, not yet in operation, either with regard to the compulsory raising of the school age to 15 or to the setting up of continuation schools; and whether he is in consultation with the Minister of Labour with regard to the provision of educational facilities for unemployed juveniles?

The provisions of the Education Act, 1918 (now embodied in the Education Act, 1921) with regard to the raising of the school age to 15 are now in operation. I do not propose, in present circumstances, to require local education authorities to undertake the provision of day continuation schools on a basis of compulsory attendance. The answer to the third part of the question is in the affirmative.

Did not the Prime Minister say he would do everything he could to encourage education, and will the Government please remember that the anti-waste policy of 1920 had disastrous effects on education?

Curricula (Rural Areas)

asked the President of the Board of Education what measures he has in view, in collaboration with the county council education authorities, to bring the elementary and secondary school system in rural areas more closely into touch with the practice of husbandry, and especially through continuation and evening classes to give farm workers a fuller chance than they now have to become conversant with the mechanism of farm machinery, and in other ways raise the value of their labour and their wage?

I have this matter under consideration, but it is, in the first place, for the county education authorities and governing bodies to consider how far the curricula of schools should be adapted to serve special local interests. I hope to consult with them on this sub- ject and also with my right hon. Friend the Minister of Agriculture, with whom responsibility for technical instruction in agriculture at present rests.

Is the Noble Lord considering the establishment of central rural schools as the best means of obtaining the object desired?

Yes, I am considering that subject, but, as my hon. Friend knows, the establishment of central schools in rural areas is exposed to a good many practical difficulties.

Public Libraries

asked the President of the Board of Education if the Departmental Committee set up by the late Minister of Education on the question of public libraries has commenced its investigation; and, if so, when the Committee is expected to present its Report?

The answer to the first part of the question is in the affirmative. I am unable to state when the Committee may be expected to present its Report.

If a Report is presented to the Minister, will he have it printed and circulated?

I have every intention, certainly, of doing so, but I do not think I can answer a hypothetical question of that kind at the moment.

Unemployment

Proposed Docks, Tees-Side

asked the Minister of Health whether any suggestion has been made to the Unemployment Grants Committee by which preliminary work in connection with the suggested new docks on the south bank of the Tees should be undertaken with the co-operation of the local authorities: and whether the Committee would be willing to discuss these proposals with representatives of the councils interested?

No suggestion has been received by the Committee with regard to new docks on the south bank of the Tees. A tentative application has been received for a dock by a private firm on the north bank, but the powers of the Committee to make grants to companies extend only to public utility undertakings.

Necessitous Areas

asked the Chancellor of the Exchequer whether any money and, if so, what amount is available for grants in relief to necessitous areas suffering from excessive unemployment; and whether, in view of the fact that excessive burdens have been thrown upon local rates by Poor Law relief and relief work schemes, he will bring fresh consideration to bear on this problem with a view to diminishing this handicap on industrial undertakings in these areas?

No special grants are given for the relief of necessitous areas as such, but the various Government schemes for relieving unemployment, being specially directed to giving assistance where unemployment is most severe, do in fact represent a very large measure of help from the general taxpayers to these areas. In my opinion this is the best method of dealing with this most difficult problem.

Is the right hon. Gentleman aware that the burdens thrown on local authorities by previous Governments in certain localities have existed for at least 30 years?

I think I have covered that aspect by the general scope of my answer.

Questions

Condemned Houses

asked the Minister of Health how many houses there are still inhabited which have been condemned and which have not been closed because the occupants are unable to find other accommodation?

Statistics are not available giving the information desired by the hon. Member. According to the Reports of Medical Officers for 1922–23, representations were made during the year with a view to closing orders in respect of 3,155 houses. Closing orders were made in respect of 2,331 houses, and in 640 cases closing orders were determined after works of repair had been carried out. I may add that in the same period repairs were secured in the case of 542,834 houses as a result of the intervention of local authorities.

Will the right hon. Gentleman consider making inquiries of local authorities and collecting the information asked for in this question, to enable him to form a conclusion as to the urgent need for extra houses?

I hardly think it would be necessary to do that. Everybody knows that there is urgent need. We do not require further evidence of that, and to get this evidence would perhaps entail a considerable amount of expense and labour.

Will the right hon. Gentleman undertake to issue an order in the case of condemned houses in which people are still living, that the owners will not be permitted to increase the rent or to draw any rent so long as those houses stand condemned?

The hon. Member, I think, is aware that there is already power for the tenant to get a certificate to the effect that the houses are uninhabitable, and that then they are not obliged to pay increased rent.

Does the right hon. Gentleman not think that unless those figures are obtained, an entirely misleading idea of the housing requirements of the country is given, and will he not take steps to get this information in respect of each borough?

Will the right hon. Gentleman say what progress his Department has made in the survey of alternative suitable accommodation, which he has secured legislative powers from this House to make?

Imperial Economic Committee

asked the Prime Minister what steps have been, or are being, taken to bring into operation the Imperial Economic Committee, as recommended by the last Imperial Conference?

I would refer my hon. Friend to the statement which I made yesterday on this subject in the course of the Debate.

Is it not a fact that the Prime Minister did not say yesterday what steps had been taken or were being taken to bring into operation this Committee?

Perhaps my hon. Friend will remember that I said the Committee was in course of formation, and that invitations had been issued for the nomination of members, but we had not yet had them answered.

Women Franchise

asked the Prime Minister whether the Government intends to introduce a Bill giving the franchise to women on the same terms as men?

I would refer the hon. and gallant Member to the answer which I gave yesterday in reply to a question by the hon. Member for Shoreditch (Mr. Thurtle).

Entertainment Duty

asked the Chancellor of the Exchequer the monthly revenue from the reduced Entertainments' Duty since reduction came into force, and compare each monthly return with the corresponding monthly figure for 1923?

With my hon. Friend's permission, I will circulate the figures in the OFFICIAL REPORT.

Following are the figures:

The net Revenue from Entertainments Duty for the periods in question was, approximately, as follows:

National Wealth and Income

asked the Chancellor of the Exchequer the estimated national wealth and national income at the outbreak of war, on the date of the Armistice, and at the present time, respectively?

I have no official estimate. The national income just before the outbreak of war was usually estimated by statisticians at about £2,200 millions. The "Economist" of 4th October last published an estimate of £3,800 millions for 1923. I am not aware of any recent estimates of national wealth, but the best pre-War estimate was £14,300 millions.

United States (British Debt Payment)

asked the Chancellor of the Exchequer what was the amount of the payment on 15th December to the United States Government of our external loan; how much was capital; and how much was interest?

The payment on the 15th December was $91,655,000, of which $23,000,000 was on account of principal and $68,655,000 interest.

Can the right hon. Gentleman say what amount was paid in Liberty Bonds?

That is a very proper question to ask, but I could not answer it without notice.

Can the right hon. Gentleman say how this sum was affected by the appreciation of the £?

Enemy Action Claims

asked the Chancellor of the Exchequer the total amount paid out in reparation claims to seamen and others out of the £5,000,000 allotted to claimants other than belated claimants?

I have been asked to reply. The total amount for which payable orders have been issued out of the £5,000,000 reparation fund to date is £4,469,033.

May I ask whether the remainder of the £5,000,000 will be allocated to the belated claimants, who have only had the inadequate sum of £300,000?

Part of the balance is unexpended, owing to the difficulty of tracing people to whom payments are due. As regards whether any further sum is to be awarded to claimants, that formed the subject of a question addressed to the Chancellor of the Exchequer a day or two ago, in which he replied he was taking the whole matter into consideration, and would make an announcement when the House reassembled.

Are any of these original claimants receiving the full amount of their claims, or, if not, what is the percentage being granted?

Does the right hon. Gentleman realise that, inasmuch as the House voted the £5,000,000, the claimants have some sort of right to receive it?

That is a question that should be addressed to the Chancellor of the Exchequer. In this matter I am the paymaster of such funds as are awarded.

Then may I ask the Chancellor of the Exchequer whether he recognises the right of these claimants to these payments?

If the original claimants have passed away, are their relatives entitled to their share?

I think so, certainly, and one of the difficulties in paying out some of these sums is in tracing the representatives of claimants who are dead.

Safeguarding of Industries

72 and 108.

asked (1) the Chancellor of the Exchequer whether he is aware that prior to the imposition of the McKenna Duties the pianoforte and musical instrument manufacturing industry in the United Kingdom suffered severely from unfair foreign competition resulting in considerable unemployment amongst those engaged in such industry, and that the effect of the imposition of such duties was not only to cause such unemployment altogether to cease but to provide work for a large number of persons not hitherto engaged in it; and whether, in view of the circumstance that such industry is again threatened with unfair competition from abroad, he will consider the desirability of including the products of such industry in any legislation that may be introduced to protect efficient industries;

(2) the President of the Board of Trade whether he is aware of the very serious position of the glass-making industry in the United Kingdom owing to unfair foreign competition; and whether, in view of the circumstances and the necessity of assisting those who are engaged in this particular trade and to increase the output of glass manufactured in this country, he will consider the desirability of including glass in any legislation that may be brought in to protect efficient industries from unfair competition?

I would refer my hon. Friend to the statement made yesterday by the Prime Minister. It is not the intention of the Government to schedule any industries in the Safeguarding of Industries Bill. Duties would only be imposed after an inquiry had established that a particular industry fulfilled the necessary conditions.

Agriculture

Foot-And-Mouth Disease

asked the Minister of Agriculture what proportion of outbreaks of foot-and-mouth disease in clear areas have, during the current year, been traced to recently purchased cattle; and what proportion have occurred on premises occupied by cattle dealers?

Of 68 outbreaks of foot-and-mouth disease which occurred in clear areas since 1st January, 1924, 23 (or 33 per cent.) occurred amongst cattle which had been purchased recently. Five outbreaks (or 7¼ per cent.) occurred on premises occupied by cattle dealers. It would be unwise to draw definite deductions from these figures, as some of the affected cattle not directly purchased from dealers may have passed through their hands just before an outbreak.

asked the Minister of Agriculture the number of Canadian cattle imported into Great Britain since the removal of the embargo, distinguishing stores and beasts for slaughter, and the number of cattle slaughtered in Great Britain during the same period on account of foot-and-mouth disease?

The number of Canadian cattle imported into Great Britain between 1st April, 1923, and 30th November, 1924, was 105,324, of which 68,816 were shipped as store cattle and 36,508 as fat cattle. The number of cattle slaughtered in Great Britain during the same period on account of foot-and-mouth disease was 108,398.

Peewits (Destruction)

asked the Minister of Agriculture if he is aware that many agriculturists are viewing with concern the continued destruction of peewits; and whether he will consider amending the Regulations so that the close period during which peewits' eggs cannot be taken commences on 1st April instead of 20th April?

I have been asked to take this question. I am aware of what is stated, but as the law stands I have no power to make general Regulations in the matter. The hon. Member may be thinking of the Wild Birds' Protection Bill, introduced last Session, which included a provision that peewits' eggs should not be collected after the 15th April. If the Bill is introduced again, the question put by the hon. Member can be considered.

Is it not a fact that a very large number of so-called plovers' eggs are really laid by another bird?

I am afraid I am not able to pose as an expert on the subject.

Questions

Sea Fisheries Acts (Consolidation)

asked the Minister of Agriculture if he will take into consideration the preparation of a Bill to consolidate and bring up to date the 23 Acts of Parliament now on the Statute Book relating to sea fisheries, many of which are obsolete and detrimental to the interests of the fishing industry of this country?

If my hon. Friend will send me his suggestions for the amendment of existing legislation, I shall be happy to consider them.

Will the right hon. Gentleman consult the officials of the Fisheries Department, and get their opinion upon it before getting mine?

5¾ per Cent. Exchequer Bonds (Conversion)

asked the Chancellor of the Exchequer the result of the conversion loan recently offered to holders of 5¾ per cent. Exchequer Bonds?

asked the Chancellor of the Exchequer what amount represented the response of holders of 5¾ per cent. Exchequer Bonds, due 1st February, 1925, to the offer contained in the Treasury prospectus issued on 17th November last setting forth a conversion scheme for such bonds; and what is the actual or estimated saving to the Exchequer resulting from this conversion scheme?

While final figures are not yet available, I am glad to be able to inform the House that of the £134,600,000 5¾ per cent. Exchequer Bonds outstanding, approximately £81,000,000 have been converted under the recent conversion offer, about £57,000,000 into 4½ per cent. Conversion Loan, 1940–1944, and about £24,000,000 into 4½ per cent. Treasury Bonds, 1934. The cash payment in respect of Conversion Loan, 1940–1944, will be about £1,250,000. The future saving resulting from this operation will be somewhat over £1,000,000 a year.

Tea Duty

asked the Chancellor of the Exchequer whether he is aware that, though the duty on tea has been reduced by 4d., the price has increased by 6d. a pound, and that a similar thing occurred after the last reduction of the duty; if he can state what is the economic cause of this variation in price; and if he will take this circumstance into account in passing next year's Budget?

The facts, I am informed, are as follows. The reduction in the Tea Duty this year averaged a little under 3½d. per lb., as the great bulk of the importations are entitled to the preferential rate of duty of 3⅓d. per lb. Retail prices fell after the Budget by 3¾d. per lb. on the average. Wholesale prices have since risen by approximately 6d. per lb. and retail prices on the average by 2½d. per lb., due to pressure of demand on available supplies. As regards the last part of the question, all relevant factors will be considered in connection with next year's Budget.

Government Publications

asked the Chancellor of the Exchequer whether he has received an appeal from the Workers' Educational Association urging the necessity of making Government publications more accessible to the general public, including the supply of Government publications to public libraries at a cheaper rate, and the establishment, in selected geographical areas, of depository libraries where all Government publications could be freely consulted by the public immediately after publication; and whether he can see his way to adopt this suggestion?

:I would refer the hon. Member to the reply which I gave to the hon. Member for Newcastle-upon-Tyne, North (Sir G. Doyle), on the 11th December.

Gold (Free Market)

asked the Chancellor of the Exchequer whether his attention has been drawn to the renewed agitation in favour of the resumption of specie payments and the restoration of a free market in gold; and, if so, can he assure the House that, before any final decision is come to on the question, the House may have an opportunity to consider the whole position?

I am aware of the general desire for a free gold market at the earliest possible moment, but I do not desire to make any statement on this subject at the present time.

Tobacco, Cocoa and Chocolate (Manufacturers' Profits)

asked the Chancellor of the Exchequer the estimated aggregate profits, respectively, of the tobacco manufacturers and the cocoa and chocolate manufacturers of the United Kingdom for 1913–14 and 1918–19, and each subsequent year?

Inter-Allied Debts

asked the Chancellor of the Exchequer how much was lent by the British Government to Allied Governments to enable the latter to finance purchases from the United States of America?

I would refer the hon. Member to the statement I made on Wednesday, 10th December. Apart from about £100,000,000 advanced to Russia, any advances made to the Allies in dollars were taken over by the United States Government. On the other hand, if we had not been supplying the Allies from the resources of this country, we should very probably not have found it necessary to borrow ourselves from the United States Government.

Ex-Service Men (Civil Service Examination)

asked the Financial Secretary to the Treasury whether instructions have yet been issued by him to suspend the proposed forthcoming clerical examination for ex-service men temporarily employed in the Civil Service?

I would refer the hon. and gallant Member to the reply given on the 16th December by the Chancellor of the Exchequer to the hon. Member for Lambeth.

Members of Parliament (Salaries)

asked the Financial Secretary to the Treasury whether, in view of the inconvenience to many Members of the House caused by the non-payment of any part of their salaries, he can arrange for the payment before Christmas of the sum already due to those Members who desire it?

Those Members who have taken the Oath will receive the payment due to them on 31st December, and it would not be possible for the Fees Office, who have already prepared the payment orders for that date and transmitted them to the Pay Office for taxation, to have the orders altered, even if this were permissible under the settled practice. I have ascertained, however, that the Fees Office would be prepared to make an advance in respect of the sum due to 24th December, and within that amount on receipt of an application in writing, stating the address to which warrants should be sent, before 4 p.m. to-morrow afternoon. Warrants will be despatched on Monday next. In view of the heavy work which would otherwise be involved on a small staff, it is hoped that Members will not take advantage of this concession unnecessarily.

Post Office

War Bonus (Mr. C. F. Hilton)

asked the Postmaster-General whether he is aware that Mr. C. F. Hilton, late third-class surveyor's clerk, Western District, who entered the Royal Engineers, Signal Service, as a sapper in 1914, served throughout the War, reached the rank of captain and adjutant, and was demobilised in 1922, submitted on 16th March, 1923, an application for War Bonus payable to Post Office servants enlisted or commissioned to Royal Engineers Signals; that in July, 1923, a claim form was sent to the applicant and returned by him duly completed; that on 1st August, 1923, Mr. Hilton was informed by the General Post Office staff officer dealing with these claims that his claim was good, ripe for payment, and would be met within three days; and that the bonus has not since been paid; and if he will state the grounds on which it is withheld?

I am aware of the circumstances in Mr. Hilton's case, which were fully set forth in a letter to the hon. and gallant Member from my predecessor in July last. As then explained the promise referred ~to was given subject to the inspection of Mr. Hilton's army records, an examination of which revealed the fact that Mr. Hilton's case came under a different category to that supposed. I regret that it is not possible to deal with Mr. Hilton's claim until the legal position has been finally determined.

May I ask how soon that legal position is likely to be determined?

Wireless Telegraphy

asked the Postmaster-General whether the Bill he proposes to introduce next Session to amend the Wireless Telegraph Act will deal retrospectively with the existing wireless licences?

The BUI will deal retrospectively with existing wireless licences so far as is considered necessary for removing doubts as to the interpretation of certain provisions in the Wireless Telegraphy Act on the lines indicated by my right hon. Friend in his statement of 12th December.

Telegraph Service

asked the Postmaster-General whether he will consider the early reintroduction of the minimum rate on telegrams of 6d. per message?

The existing rates of charge do not cover the cost of maintaining the telegraph service, and I regret I can hold out no hope of a reduction.

Questions

Albania

( by Private Notice )asked the Secretary of State for Foreign Affairs whether he has any further information with regard to the disquieting situation in Albania; whether the League of Nations has taken or is taking any active steps to prevent the conflagration spreading to Montenegro, Bulgaria, Croatia and the rest of the Balkans, and whether, in view of Great Britain's share of responsibility for the maintenance of the integrity of the Albanian State and her contribution towards the famine relief fund, His Majesty's Government is acting in conjunction with the League of Nations to secure a definite settlement of the boundary and other disputes which have been the direct cause of the recent insurrections?

His Majesty's Government have little information beyond what has already been either given to the House or appeared in the Press. The Albanian Government have not, in so far as I am aware, appealed to the League of Nations. The Noble Lord can rest assured that His Majesty's Government are well aware of the dangers inherent in any disturbance of the peace in the Balkans, and that they have spared, and will spare, no effort to localise the disturbance. I may add that when in Rome I received the assurance of both the Italian and the Jugo-Slavian Governments that this was also their desire.

Electricity Commission (Compulsory Powers)

asked the Minister of Transport whether he proposes to introduce legislation to restore the compulsory powers of the Electricity Commissioners?

I would refer the hon. Member to the statement made by the Prime Minister yesterday that the schemes of electrical development which were submitted to the late Government are being very carefully examined with a view to acting upon them if it can be proved that such action would be for the benefit of the country.

Transport

Driving Licences (Tests)

asked the Minister of Transport whether he has considered the proposal that tests should be restituted before driving licences for motor vehicles are granted to applicants, both as to their physical fitness and also in regard to their ability to drive; and whether he will introduce legislation to make such examination obligatory?

This matter has already been considered and reported on by the Departmental Committee. I am disposed to agree with their conclusion that it would not be practicable to institute any general system of tests for drivers of motor vehicles.

Is it not a fact that in almost every other country in the world there is a test of this kind, and can the hon. and gallant Gentleman give us any reason why in this country a test should be considered impracticable?

I am one of those who think that this country does better than any other country in respect to these matters, and I am not prepared to set up such a standard as that suggested. There are many difficulties in this case. First of all, there is that of securing uniformity of test all over the country and also my opinion is that it is not the inexperienced driver who causes the accidents, but generally the experienced driver who takes risks.

Is the right hon. Gentleman aware that although there is such a test in Paris, the street accidents in Paris through negligent driving are higher than in any other city of the world?

Motor Trailers

asked the Minister of Transport whether his attention has been drawn to the dangers which may arise from the presence on the roads of motor vehicles with trailers attached when no person is stationed upon the trailer to give warning to the driver of the vehicle of the presence of other users of the road; and whether legislation will be introduced to require that all motor vehicles with trailers attached should have some person in charge of the trailer?

This is one of the points that will be considered in connection with the proposed Bill dealing with the regulation of road vehicles. I would prefer not to anticipate the provisions of the Bill on a point of detail such as this.

Questions

London Traffic Act Advisory Committee

( by Private Notice )asked the Minister of Transport whether he is now in a position to announce the names of the Advisory Committee under the London Traffic Act?

The London and Home Counties Traffic Advisory Committee, appointed under the provisions of Section 1 of the London Traffic Act, 1924, has been constituted as follows:

Ordinary members . Additional Members .

Is the right hon Gentleman aware that two representatives of the London County Council represent only one party, although there are three parties on the Council?

We cannot control the County Council. We have quite enough to do to attend to our own business.

Royal Dockyards (Boxing Day)

( by Private Notice )asked the First Lord of the Admiralty whether it is proposed to open any of the Royal dockyards for work on Boxing Day; if he is aware that on previous occasions only a portion of the men have turned up, and in consequence little work has been done; and whether he does not think it would be better to carry out the practice of private employers in many parts of the country and give the men an extra holiday on Boxing Day?

We intend to open the Royal dockyards, although probably a considerable proportion of the men will not be at work on that day. We think no men should be prevented from earning their wages on that day. It is not the usual practice in shipbuilding and engineering yards to give the workmen any bank holiday at Christmas. Christmas is one of the four appointed holidays which for many years have been observed in the Royal dockyards.

Do not the Admiralty think they should alter their practice in this respect?

I do not think it would be desirable to use the taxpayers' money by giving a holiday to the men and paying them for it.

Would not the hon. Gentleman consider the question a little more before he turns down the course suggested by my hon. and gallant Friend, seeing that the dockyard men get no holiday, with pay, to speak of during the whole of the year except the four days he mentioned?

Will the right hon. Gentleman consider the fact that almost every firm of any size pays for these holidays? Will he also consider the fact that we are all going off for about eight weeks' holiday from this place, and we get our money?

Would the Admiralty really consider it, or are they keeping it as a horrible example of what the State will do if it owns all industries?

Political Prosecutions

( by Private Notice )asked the Prime Minister whether it is the opinion of the Government that in instituting prosecutions of a political character in the interests of the State it is or is not the duty of the Attorney-General to obtain the views of the particular Ministers concerned or of the Cabinet on points of public policy; whether past practice clearly shows, without in any way violating the Constitution or diminishing the responsibility of the Attorney-General, this consultation has taken place and the advice of Cabinets followed; and what precisely was the reason why instructions to the above effect issued by the late Government were rescinded.

The office of Director of Public Prosecutions was established by the Prosecution of Offences Act, 1879, which enacts that the Director should discharge his duties under the superintendence of the Attorney-General and the Regulations made pursuant to that Act, provided that he shall in all matters be subject to the directions of the Attorney-General.

In the view of His Majesty's Government, it is the duty of the Attorney-General, in the discharge of the responsibilities so entrusted to him, to inform himself of all relevant circumstances which might properly affect his decision: when the proposed prosecution is of such a character that matters of public policy are, or may be, involved, it is the duty of the Attorney-General to inform himself of the views of the Government or of the appropriate Minister before coming to a decision.

It is because in the view of the Government the instructions referred to in the question went beyond this that these instructions were rescinded by the Cabinet.

As I gave notice that I should have to raise this on the Adjournment, and as the answer given is in substance what the Government wished to make clear by its instruction, I shall not require to take up the time of the House by referring to this matter on the Adjournment."

Business of the House

Would the Prime Minister be good enough to tell us what business he proposes to take when the House resumes on the 10th February?

On Tuesday, the 10th, we propose to take the Church of Scotland (Property and Endowments) Bill, Second Reading; further stages of the British Sugar (Subsidy) Bill and the War Charges Validity Bill, and, if time permit, other Orders on the Paper.

On Wednesday and Thursday, Supplementary Estimates.

I may say, for the convenience of Members, that the Supplementary Estimates will be presented to-morrow, and will be circulated to Members as soon as possible, so as to give them ample time in which to examine them before we consider them in the House.

Can the Prime Minister say which Estimates will be taken on the two days?

They will be taken in order. They will be published during the Recess for the Tuesday on which we meet, and they will be down then.

May I ask the Prime Minister whether the views of the Scottish Members were taken into consideration when he decided, or when the Parliamentary Secretary to the Treasury decided, that the Scottish Church Bill is going to be considered on the very first day the House reassembles?

I understand this is a Bill which arouses great interest among Scottish Members, and it was thought desirable to get it through Second Reading as early as possible. We should have taken it during this fortnight had we been able to find time for it.

My idea is that most of the Scottish Members who may have some opposition to it may not be back in time for it. May I ask whether the Parliamentary Secretary to the Treasury and the Prime Minister will reconsider this matter, and see whether they can set it down for a later day in that week or a day in the following week?

May I ask the Prime Minister if the report that appeared in the Press and which has been extensively circulated in Scotland in connection with the Church of Scotland Bill, that it is the intention of the Government to accept no amendment to this Bill, but to force it through the House of Commons by the power of their majority, is correct; and whether he intends on the discussion of this Bill to concede to those of us in Scotland who hold contrary views at least the right of amending this Bill?

My principal object in taking the Bill immediately after the resumption of the Session was that due time might be allowed for it to be considered in Committee upstairs.

May I press the Prime Minister to answer the question originally put, as to whether in the arrangement of this time-table any attempt was made to consult the Scottish Members of the various parties?

Before the Prime 8 Minister replies, may I ask him whether h this arrangement is not in accordance with the wishes of the large number of Scottish Members who are not desirous of increasing their holiday, as apparently is s desired by others?

May I put this further point in connection with the arranging of business? We are not wishing to kill the Bill, but may I ask, for the sake of carrying the good will of the Scottish Members on this question [ Interruption .] Do you not want it? May I ask the right hon. Gentleman, who, after all, is much more reasonable than his followers, to consider whether, in order to secure the good will of the Scottish Members, and seeing that we have to travel the furthest distance of all Members, it will not be possible to arrange it a few days later? It would not delay the Bill any considerable time.

I should like to ask whether this matter might not be delayed a little time, in view of the general ignorance of the House regarding this Scottish Church question, in order that it may be fully developed?

May I ask if the Bill brought in is not the same as Lord Haldane's Bill that has been D already brought in?

May I ask the Prime Minister or the Parliamentary Secretary to the Treasury for an answer to the question I have put?

I think what has been said already shows that there is such interest in the Bill that the sooner it is taken the better.

I understand that the hon. Member for Gorbals (Mr. Buchanan) wishes to raise a point of Order arising out of this matter. Will the hon. Member put his point briefly to me, without making a speech?

I will endeavour to do so. The Prime Minister has announced the business for next Session. May I ask you if it is not possible for the sections of the House who are affected by that business to protest against this autocratic method of arranging it.

If the hon. Member reads the Standing Orders, he will see that it is the duty of the Government to arrange the business.

I put a question down to be answered by the Minister of Transport. Apparently it has got moved from the Paper. I do not know why, because I believe it was passed. It referred to the Southern Railway.

I will look into the matter, but my impression is that the hon. and gallant Member's question was out of order, and I could not allow it to proceed.

Notices of Motion:

Empire Development

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, I shall call attention to Empire development, and move a Resolution.

Flying Accidents

I beg to give notice that, on going into Committee of Supply on the Air Estimates, I shall call attention to the number of flying accidents, and move a Resolution.

Royal Navy (Lower Deck Grievances)

I beg to give notice that, on going into Committee of Supply on the Navy Estimates, I shall call attention to the grievances of the lower deck, and move a Resolution.

Army (Democratic Promotion)

I beg to give notice that, on going into Committee of Supply on the Army Estimates, I shall call attention to the question of democratic promotion, and move a Resolution.

Mining Accidents

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, I shall call attention to accidents in mines, and move a Resolution.

Royal Air Force (Democratic Promotion)

I beg to give notice that, on going into Committee of Supply on the Air Estimates, I shall call attention to the question of democratic promotion, and move a Resolution

Army Costing Department

I beg to give notice that, on going into Committee of Supply on the Army Estimates, I shall call attention to the Army Costing Department, and move a Resolution.

Mining Industry

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, my hon. Friend (Mr. Varley) will call attention to the condition of the mining industry, and move a Resolution.

Penny Postage

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, I shall call attention to the administration and policy of the Post Office, with reference to penny postage, and move a Resolution.

International Labour Convention

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, I shall call attention to the International Labour Convention, and move a Resolution.

Trade Conditions

I beg to give notice that, on going into Committee of Supply on the Civil Services Estimates, I shall call attention to the condition of trade, and move a Resolution.

Royal Dockyards

I beg to give notice that, on going into Committee of Supply on the Navy Estimates, I shall call attention to the number and distribution of dockyards, and move a Resolution.

Bills Presented:

Importation of Pedigree Animals Bill,

"to amend the Law with respect to the landing in Great Britain of pedigree animals brought from His Majesty's Dominions," presented by Mr. EDWARD WOOD; supported by Mr. Amery and Sir John Gilmour; to be read a Second time To-morrow, and to be printed. [Bill 16.]

Church of Scotland (Property and Endowments) Bill,

"to amend the Law relating to Teinds and to the Stipends of Ministers of the Church of Scotland, and the tenure of the Property and Endowments of that Church; and for purposes connected therewith," presented by Sir JOHN GILMOUR; supported by the Lord Advocate, the Solicitor-General for Scotland and Captain Elliot; to be read a Second time To-morrow, and to be printed. [Bill 17.]

Public Social Services (Expenditure)

Return ordered, "showing, so far as particulars are available, the total expenditure (other than out of loans) in England and Wales under certain Acts of Parliament during the years ended the 31st day of March, 1891, 1901, 1911, 1921, 1923 and 1924, respectively, and the total number of persons directly benefiting from the expenditure for the year 1923 together with similar particulars for Scotland (in continuation of Parliamentary Paper, No. 26, of Session 1924)."—[ Major Hennessy .]

Ancient Monuments Preservation Order Confirmation Bill

To be printed. [Bill 15.]

Orders of the Day

Law of Property Act (Postponement) Bill [Lords]

Considered in Committee.

[Mr. JAMES HOPE in the Chair.]

CLAUSE 1.—(Postponement of commencement of 12 & 13 Geo. 5, c. 16.)

I beg to move, in page 1, line 10, at the end to insert the words

"Provided always that, notwithstanding the provisions of this Act, Sections sixty-four and sixty-five of the Law of Property Act, 1922, shall come into force on the first day of January, nineteen hundred and twenty-five."

I have no desire, in moving this Amendment, to create any difficulty for my right hon. and learned Friend, for I realise that the Bill must become law in view, of legal difficulties. But I would like just to draw attention to one unfortunate result to those who anticipated the Act of 1922 coming into law in January next. The two sections which are the subject of my Amendment are Sections 64 and 65. Under Section 64, capital moneys will become available for payment to local authorities in consideration of those authorities becoming liable for the upkeep and maintenance of roads, and a very large number of people have already made arrangements for making up these roads under the Act, which they thought was coming into force on the 1st January, and unless they get this power at once, and it is not merely hypothetically retrospective, they will be estopped. There are retrospective words in Section 64, but I am informed that eminent counsel at the Chancery Bar have advised that trustees would not be able to pay capital moneys out for works specified under Section 1, and it is quite possible, in view of the difficulties, that there is no guarantee that this Act will come into force in January, 1926, that all these works may be lost. Under Section 65, which is not to be retrospective and which was expected to operate from January next, arrangements have been made for all kinds of work requiring the charge of capital money such as restoration of buildings damaged by dry rot; boring for water and providing the necessary machinery. I would therefore ask my right hon. and learned Friend if there is no possible chance of him being able to put this Amendment into the Bill. If he could see his way to do so, he would be rendering a very great service to those whose duties it is to maintain and keep the roads and estates in proper order. I have no desire to put him in a difficult position, but if anything can be done it will be a very great advantage.

My hon. Friend has certainly moved his Amendment in a conciliatory manner and in one which implies no hostility to the Bill, but I am sorry, in spite of that fact which I gladly recognise, that it is not possible for me to accept the Amendment. I think I can show the Committee, quite shortly, why it is that it really is not possible to do so. The Bill is one to postpone for one year the coming into operation of the Act which was passed in 1922, and the Committee will remember that when I moved the Second Reading of the Bill I explained that a specific pledge had been given by the Government of the day at the time the 1922 Act was before Parliament, that proper opportunity would be given to those interested in Real Property Law and those who were affected by the provisions of the Bill—and no one who has anything to do with land is unaffected by the Bill—first of all for the consolidation of the law by a series of consolidating Bills which it is necessary to introduce, and, secondly, for those practising in this particular and very technical branch of the law to become familiar with the changes which had been effected. It is perfectly true, as the hon. Member has urged, that these two particular Sections, 64 and 65, could theoretically be brought into operation without bringing into effect the rest of the Act of Parliament, but the same argument might be urged with equal force with regard to a number of Sections scattered all through the 1922 Act. An attempt was made before the present Government came into power to see whether there could be picked out of the 1922 Act such provisions as could be brought into force next year, leaving the balance of the Act to come into force later, but that was found to be impracticable. To have split up the Act into two when it was really one would have caused much confusion and it would have made it very difficult to work.

The Government which preceded the present Government decided that the only practical way of dealing with the matter and of implementing the pledge given in 1922 was to postpone the Act for one year. I think the hon. Member who moved this Amendment recognised that it would not be possible to let this Act come into force on the 1st January next, because that would produce chaos and cause widespread disaster, if not ruin. We who inherit the policy of the party opposite in regard to this Measure have felt bound to maintain the attitude they adopted, and in the time between now and the 1st January it was not possible for us to adopt any different course, even if it had been thought desirable. I assure the hon. Member that Section 64 of the 1922 Act, with regard to which he says a certain number of people are making provision to spend money in a way which is declared thereby to be legal, is a clause which in terms is retrospective, and it provides that:

I ask leave to withdraw my Amendment.

Amendment, by leave, withdrawn.

Motion made, and Question proposed, "That the Clause stand part of the Bill."

The late Government is responsible for this particular Clause, but I do not wish this postponement— with which I most thoroughly agree—to be adopted without just drawing the attention of the Committee to the extraordinarily difficult position in which not only all legal practitioners and those dealing with these matters find themselves if it is not postponed, and will find themselves in even if postponed, because of the uncertainty of the whole situation. This Law of Property Bill has been before this House or discussed in anther place since the year 1920. In that year it was referred to a Committee, and in 1921 it obtained its Third Reading in another place. In 1922 it passed both Houses of Parliament and received the Royal Assent to come into operation on the 1st January, 1925.

It is abundantly clear from what has happened in another place, because this House has had very little to do at any time with this particular Bill, that the original measure of Lord Birkenhead will have to be amended to such an extent that it may be regarded as at an end. This has proved to be too great a matter to be dealt with in one particular Measure. I do not want to go back upon the questions discussed during the last 10 years or so, but there has been a wave of juridical Bolshevism which has swept away the original Act. The whole thing has now to be reconsidered. In a few minutes' time we shall be discussing another Bill to amend the original Bill which will subsequently be codified. I am afraid it has become necessary to postpone this Bill, because I believe that the people practising the law are coming to the conclusion that the original Measure is not a practical one. My prophecy is that when it comes to the end of the year we shall be faced with yet another postponement of this particular Measure.

This question wants a great deal more consideration because the complications are enormous. When we are asked to deal with anything striking in any way at the commercial system, it is said on the benches opposite "This is too drastic a matter, and it goes to the very root of the national life, and we must proceed in a careful manner." This Bill amends the whole principles of the law of real property in a way in which I doubt whether any hon. Member of this House would attempt to do in a single Measure. I hope we shall have some statement from the Attorney-General as to what really is going to be done with all these matters affecting real property, because there is a great uncertainty as to what is the actual position.

We have heard a good deal about the value of a stable Government, but I think a certain amount of value ought to be attached to stability in the law and in people's estates whatever they may be. In a few minutes' time we are going to proceed with an amending Bill. I sug- gest that we should be told what those Amendments mean in regard to the Consolidation of the Law of Property Bill, because, at the moment, we are in the dark. I know it will be said that the last Government postponed this particular Measure. So they did, and it was quite right to do so; but now there is more leisure and more power given to hon. and right hon. Gentlemen opposite, and I hope they will say what their views are as to the future of this real property legislation. It is certain that one Measure is quite insufficient to deal with the whole of this question.

As one who has practised in this particular branch of the law, may I refer to one or two observations which have been made by the late Solicitor-General. He seems to me to be under a misapprehension. He talks about the uncertainty of the law. Those who practise in this branch of the law wish to have this uncertainty removed, and that is why we are so anxious that this Measure should be put on the Statute Book at the earliest possible moment. The right hon. and learned Gentleman has referred to Lord Birkenhead's Act as if it was a Consolidation Act. But the Act of 1922 was not a consolidation Measure at all. The Title was:

"An Act to assimilate and amend the Law of Real and Personal Estate, to abolish copyhold and other special tenures, to amend the law relating to commonable lands and of intestacy, and to amend the Wills Act, 1837, the Settled Land Acts, 1882 to 1890, the Conveyancing Acts, 1881 to 1911, the Trustee Act, 1893, and the Land Transfer Acts, 1875 and 1897."

As the result of that Act, as the House will readily observe, many Amendments were introduced into the number of Acts which are mentioned in the title of Lord Birkenhead's Act. It was, accordingly, thought desirable by all those interested in this branch of the law that, as Lord Birkenheád's Act had introduced changes of a substantial character, the various Acts dealing with these different branches of the law should be consolidated, and as a result of the suggestions made to that effect, Consolidation Bills have been prepared dealing with these different branches of property law. When the late Solicitor-General says that the matter has not been fully considered, let me remind the Committee that the amending Bill has been most care- fully considered by an expert Committee. There was appointed by Lord Cave in November, 1923, a Committee, which was presided over by Mr. Justice Romer, to consider what amendments were necessary in Lord Birkenhead's Act, so that the various Consolidation Bills which it is proposed to bring in next year should deal efficiently and satisfactorily with the intricate matters with which they are concerned. Having regard to these facts I believe there is a general feeling amongst the profession that it is essential that these Bills should be passed into law at the earliest possible moment, and I think this House will be acting in the public interest if hon. Members allow this Bill to go through with as little opposition as possible.

I desire to repeat what the late Solicitor-General said about the desirability of postponing the operation of this Act. I do not think the hon. and learned Member for Eastern Surrey (Mr. Galbraith) has dealt quite fairly with the Bill. It is not merely a question of amending the Measure slightly, but it is a question of amending it very largely. There are Amendments to the new Bill itself filling no less than 44 pages. It is under these circumstances almost useless to attempt to understand the meaning of these Amendments in the time at our disposal. This Bill is going to recast the whole form of copyhold, and the Amendment on the Paper is one which affects, not only the owners of land, but all those who have to deal with real property. It has been suggested that these questions have all been fully discussed by a Committee, but it was not a Committee of this House, and at the present moment the great majority, even of lawyers, have not had an opportunity of fully realising either the effect of the original Bill that is going to be amended or the Amendments which are now down on the Paper. There is another series of Amendments, extending to 30 pages, dealing with the Settled Lands Act.

On a point of Order. May I ask whether we are not discussing a one-clause Bill, and not the Bill to which the hon. Member is referring?

I do not think the hon. Member is at present out of order, because this is a Bill to postpone another Bill, which at the same time it is sought to amend. So far, I think the hon. Member has been giving reasons in favour of postponement.

That is so. I am endeavouring to point out that the Bill with which we are asked to deal has never been considered by this House, and not only that, but it is going to be amended, on the suggestion of this Committee, to the extent of 40 pages as regards the Conveyancing Act, and 30 pages as regards the Settled Lands Act. Anyone conversant with conveyancing in this country must know that in the past it was, after all, a very simple process. Most of the conveyancing in this country was based on the Conveyancing Act, 1881, and the Settled Lands Act, 1882, with minor amendments. For that there is to be substituted this new, bulky Statute, which, as has been said, stands to the credit of Lord Birkenhead—a common-law lawyer, by the way—and which, before it comes into operation, needs the consideration by this House of 40 pages of Amendments for that one Act alone.

In order to put that Act into force it is necessary, as has been said by the hon. and learned Member for Eastern Surrey (Mr. Galbraith), to have a consolidation Bill; and with regard to one alone of these Acts—and a very important one from the point of view of both the landlords and the public, namely, the Settled Lands Act—it will be necessary for us to consider no fewer than 30 pages of Amendments. I submit that it is not only necessary that the Bill should be postponed for one year, as is now proposed, but that the Government should, in the interests of the property owners of the country, in the interests of the public, and really in the interests of this House, seriously consider whether there should not be a still further postponement, so that the House, during the coming Session, may have sufficient time to deal in a proper manner with these Amendments.

Question, "That the Clause stand part of the Bill," put, and agreed to.

Clause 2 ( Short title ) ordered to stand part of the Bill.

Bill reported, without Amendment; read the Third time, and passed, without Amendment.

Law of Property (Amendment) Bill [Lords.]

Considered in Committee.

[Mr. JAMES HOPE in the Chair.]

Clause 1 (Repeals effected by principal Act) ordered to stand part of the Bill

The Committee will observe that Clauses 2 to 9 all refer to various Schedules, and I think I may save a little time by putting them all at once, if no objection is taken.

Clauses 2 to 9 ordered to stand part of the Bill.

Clauses 10 ( Repeal of Statutes rendered obsolete ), 11 ( Provisions for facilitating the consolidation of the law relating to university and college estates ) and 12 ( Short title, commencement, extent ) ordered to stand part of the Bill.

First Schedule ( Repeals effected by the Law of Property Act , 1922) agreed to.

SECOND SCHEDULE.—(Amendments of principal Act.)

I beg to move, in page 11, line 15, at the end, to insert the words Those manors are situated and cover a large area in Lancashire, embracing many of the large industrial towns, and in the opinion of the lawyers who have advised us in this matter, and who are of large experience and undoubted authority in Lancashire on the law of copyhold, the effect of the Act of 1922, if it be unamended, will be to cause an extra burden to the tenants of those manors of no less a sum than £176,000, which they ought not to have to pay.

There are other lawyers who think that the Act of 1922 covers the position, but there is no lawyer who suggests that it would be fair to make these exactions from the tenants. The object of this Amendment is to remove any possible doubts that may exist in the law, in order that the tenants may be quite clear that this enormous compensation may not be landed upon them by the lord of the manor. If we are to avoid costly litigation, and, as the Committee is already aware, there are difficulties in interpreting the Section, surely it is an opportune time, when we are amending the original Bill, to introduce the necessary Amendment. The principal difficulty arises in connection with paragraph 13 of Part II of the Second Schedule of the Act of 1922, which states:— and conditions of a lease made without the licence of the landlord but in accordance with the custom. The difficulty in the Honor of Clitheroe is that there is a restriction by reason of the tenant being limited to surrender and admittance when he deals with the land, and, if we could be assured that this Bill will be so amended that there will be no question of any compensation being exacted from the tenant, that would meet the point we have in view. The tenants have unlimited rights to deal with the land in any way they think proper, but they have to submit to the formality of surrender and admittance, although that surrender and admittance cannot be refused, and no fines can be imposed beyond the nominal fines. Is it desirable that the law should stand under that proviso, with its possibilities of litigation, or will it be an advantage that the Amendment which we suggest, and which reiterates the proviso with the saving condition that surrender and admittance in this case shall not be considered to restrict the right of the copyhold tenant? If that be put into the Act, we think that the position of the copyholders in the Honor of Clitheroe will be much better and safer than it is at the present day.

I think that this Bill should be amended in the interests of the tenant, and this is where a layman can speak. The bill for all the accounts which are submitted when the interest is assessed will have to be paid by the tenants of the Honor, and those familiar with the conditions of that district will know how the land has been developed. It is not held by large landowners. The land of all these towns has been developed by the small builder, who has taken small pieces of land from the large owner and has erected thereon a few houses, which have been sold to individual holders, who have been assisted in the purchase of the houses by the local co-operative societies and by the building societies of the district. In that particular district there are many thousands of working-class copyholders, people who are interested either as directly holding as copyhold tenants, or as holders under tenants. They all have their interests, and they will all be assessed to some part of this huge compensation if this Bill is not amended.

Towns which are largely interested are Accrington, Bacup, Haslingden, Nelson, Ramsbottom, Rawtenstall, Burnley, Clitheroe and Colne. There are other places which are interested, but not so much. The total annual value of the land which will be affected under this Copyhold Act amounts to £880,000. The compensation which this company will be able to exact is £176,000, so that you will see how enormously important it is to people in that area that there should1 be no doubt whatever what is the strict interpretation of the Act. What would be the copyhold tenants' gain if they were to pay this £176,000? This Honor was formerly held by the Duke of Buccleuch. It is now the Clitheroe Estates Company, Limited, and the Lord of the Manor, this company, when it issued its prospectus gave the annual value over an average of seven years as £66. It seems incredible that it should be possible for people who are the owners of the land to have the fear of an exaction being made of £176,000 in order to extinguish a burden at present of £66 only, and it is because of the enormity of the exaction that I beg to move the Amendment.

I rise to support the hon. Member's plea to the Attorney-General for special consideration on the facts he has adduced. I think the House is fully aware of the reasons why this Bill has been brought forward. Since the original Law of Property Act was passed in 1922, anomalies have been discovered which have made the present Bill necessary. The Act extinguishes copyhold and various other ancient forms of land tenure. We all realise that when we deal with land tenure we are not dealing in this country with virgin soil, but with soil which has become honeycombed with old roots, with their ramifications running back for centuries. It applies in a special degree to districts referred to by the hon. Member—the towns of Accrington, Bakup, Colne, Clitheroe, Rawtenstall and Rams-bottom, a cluster of towns which are amongst the most important in the whole country. They are vitally affected by this. They are within the jurisdiction of the Clitheroe Estate Company, Limited, which is now the lord of the manor. In 1888 it made a public issue of certain debentures and debenture stock. The Attorney-General is, no doubt, aware of these facts.

Then I shall be pleased to give him the information. It is the first time in my life that I have been able to give him information. The prospectus then issued contained a detailed report of the properties, but nowhere in that report is any reference made to the right of forfeiture, and from this report it appears that the fines amounted on an average over the seven preceding years to the sum of £66 per annum. Unless the suggested proposals are amended compensation will have to be paid to the manor of Clitheroe amounting to £175,000 for the loss of nominal copyhold rentals amounting to only £66 a year. The Act specifies that compensation is to be based not on the nominal value of the copyhold rents, as it ought to be, but is to be 20 per cent. of the annual value for Income Tax purposes of the property built upon the land. There are thousands of property owners in that district who will be liable under the Act to find the £175,000. Such an incidence would not only be excessively and outrageously heavy, but also absolutely unjust.

I am glad the Attorney-General nods assent. I hope the late Solicitor-General, in his new role of champion of the stability of property, will also support us on this point. In one specific case the copyhold rent on a block of cottage property under this manor amounts to only 4d. a year, but the compensation to be paid under the Act would be no less than £37. It would be infinitely more just to stipulate that the compensation should be fixed at 30 years' purchase of the actual copyhold rent. That would be not only just but generous. We hear a great deal in these days about the safeguarding of industry. The Amendment seeks to safeguard the rights and interests of a large body of copyhold tenants, and I agree with the hon. Member that if some such Amendment is made you will not only do justice to the landlords but also minimise the risks of constant legislation. I was very glad he put it so clearly. After all Acts of Pariament should seek a higher purpose than the provision of constant and abundant fodder for the lawyers. I am glad to notice that the late Solicitor-General agrees with that. It is about the only point on which I have ever agreed with him in his life. I appeal to the Attorney-General to accept the Amendment. We are speaking to-day on behalf of a very large and important industrial district, and I feel sure if he will accept the Amendment he will have the satisfaction of knowing that he is not only acting justly but generously to the manor itself.

I rise for the purpose, not at all of belittling the Amendment, but of urging my hon. Friend the Member for Rossendale (Mr. Waddington) to withdraw it, provided a satisfactory assurance can be received from the Government that the matter will be considered and dealt with at a later stage if they are satisfied that there is a real difficulty. I cannot help thinking there is a real difficulty, because lawyers take different views as to what will be the effect of the provisions of Clause 13 of the second part of Schedule 13 of the Act of 1922—an ominous combination—as to the compensation which is payable. The income derived from the very small dues which are payable by the copyholders in this case amount, we are told, to the very small sum of between £60 and £66 a year. According to one construction, which is believed by some lawyers to be the right construction, the effect of the compensation provisions will be that a very large sum, in the neighbourhood of £170,000, will be payable to enfranchise these copyholds and provide compensation in respect of these dues. It is common ground that no one desires that to take place. Those who are responsible for the drafting of the Act say this will not happen. On the other hand, I am bound to say I have been told by an experienced conveyancer of Lincoln's Inn that he thinks the result will be that this very large sum of compensation might become payable, and we have heard from the hon. Member for Rossendale that a very experienced solicitor in respect of copyholds takes the same view. One can understand the apprehensions of the people who live in the manor of Clitheroe that they may, on the construction of the Act, be deemed to be liable to pay this very large sum. No doubt it would be distributed among many people, but it is the fact, I believe, that a very large number of the copyholders are very poor people, and although the amount payable by some would be com- paratively small, it would no doubt be felt very irksome and very unjust when it is merely to extinguish some very small liability to payments, amounting in some cases to only a very few pence.

5.0 P.M.

It is desirable that the assurance should be given to those whose apprehensions have been aroused by this difference of opinion in the legal profession that the Government will take the matter into consideration and, if they think there is any doubt at all, afford an opportunity, either by some Amendment or by an amending Bill, to put the matter right. Part of the Honor of Clitheroe borders upon my constituency, and it is very probable that part of it is actually in the constituency. This is not the place in which to discuss the exact phraseology of an Act dealing with matters of this kind when it turns upon a delicate construction, and I confess that I am not altogether satisfied that the wording of the Amendment proposed by my hon. Friend the Member for Rossendale would achieve the object which is desired. The object is a common object. Nobody wants the owner of these small dues, bringing in, we are told, between £60 and £66 a year, to receive this inordinate amount of compensation. I would urge my Friends the Mover and Seconder of the Amendment if, as I think is very probable, my right hon. and learned Friend the Attorney-General is able to give us assurances that the matter shall be considered and opportunity be afforded of making the matter perfectly clear, that they will withdraw the Amendment.

I desire to say at once that nothing is further from the intention of His Majesty's Government than to do anything which would in any way sully the Honor of Clitheroe. It is apparently a very important part of the country, where there has been established that system of small property owner which the Government have every desire to encourage, they being the backbone and safeguard of the country, and we agree at once, and I think everybody in the Committee will agree, that the suggestion of the payment of £170,000 to be made in order to extinguish rights of £66 a year would be a ludicrous as well as a grossly unjust proposition. I would like to clear up one point which may not be quite clear to the Committee. It is not, of course, suggested that anything which we are seeking to do in this amending Bill is going to produce that disastrous result. What is suggested is that the Act which was passed by the Parliament in 1922 has produced that result, and the Mover and the Seconder of the Amendment desire to take the present opportunity of altering what they think was wrongly done in 1922. I only want to make quite clear that it is nothing which we are now proposing that has produced the Amendment.

I do not pretend to be a conveyancing lawyer of the same experience as my hon. and learned Friend the Member for Bolton, who has just spoken. I have taken pains since this point was introduced to my notice to consult those who are probably the most experienced conveyancing lawyers in this country, and I am assured by them that the fears entertained by the Mover and the Seconder of the Amendment are, in fact, unfounded. If I can state in simple language the point, it is this, that, under the Schedule for payment of compensation, it is provided that where there is a fine certain, as there is in this case, a fine of 2d., then the compensation is arrived at by multiplying the amount of the fine by half the number of years' purchase given in the table.

As 2d. is the fine, it would come to a few shillings in most cases. The Mover and the Seconder of the Resolution, however, go on to point out that in another Clause of the Bill the compensation for all copyhold is to be 20 per cent. of the annual value, and they say that the annual value is very large. Where the difference arises is this, that that provision does not apply, and is expressly excluded where, by the customs of the manor, the tenant has an unrestricted right of demising or otherwise dealing with the land without the consent of the lord. It is common ground that the tenant has that right here of dealing with the land without the lord's consent. But the Mover and Seconder and those who are apprehensive say, "That is quite true, but it can only be done in a certain way, by surrender and admittance." I am advised by the most competent conveyancing lawyers that that is a mistake, that the right of dealing with the land is absolutely unrestricted, although the method by which the dealing is made legal is a particular method, just as in all dealing with land you have got to proceed by deed. The fact that you have got to proceed by a particular method does not alter the fact that it is unrestricted. There is no substance, I am advised, in the fears that have been entertained. I ought to say for the re-assurance of the Committee that express power is given under the Act of 1922 to the Minister where he thinks the scale would work unjustly to alter it to any extent that he sees fit. If by any unfortunate chance anything went wrong, the Minister will without doubt exercise that power.

I wish to go further in allaying the apprehension of the hon. Gentlemen who moved and seconded the Amendment. I would like to say at once that I cannot accept the Amendment that they are moving, for the reasons that this very bulky and complicated Measure, containing as it does 137 pages of Amendments which are essential if we are to get on to our Consolidation Bills this year, must go through before Christmas, and if we once start on fresh Amendments, we shall not be able to start on the Consolidation Bills. I am going to ask the Committee to let us have it as it stands. I will undertake that the matter will be reconsidered very carefully, and that any representations that have been made and any representations that they would desire to make, shall be carefully considered, and if it appears that there is any real danger of anything so disastrous happening as they have suggested, an opportunity shall be given to them or provided by the Government itself to have the matter put right before the Act becomes effective, which they realise will not be 'before 1926. I hope that the Mover and Seconder will recognise that I am determined that an injustice of this kind shall not take place. The only difference between us is whether there is any existing danger.

I am sure that the hon. Member for Accrington (Mr. H. Edwards) and myself very much appreciate the manner in which the Attorney-General has met us. No harm will be done by withdrawing the Amendment now and taking advantage of making representations to him subsequently, which he has so kindly referred to. With the permission of the Committee, I would like to withdraw the Amendment.

Before this Amendment is withdrawn, I share the gratification of my hon. Friend with a very sympathetic answer from the Attorney-General. I take it from him that, so far as he is concerned from the advice, he is perfectly satisfied in his own mind that there is no such risk as we have been told there is.

I do not pretend to be a conveyancing lawyer, but the advice I got was advice from people whom I unhesitatingly regard as the authority on the subject. Therefore, their assurance does satisfy me.

I take it, if there is they will appear for us after that.

Amendment negatived.

Schedule agreed to.

Third Schedule agreed to.

FOURTH SCHEDULE.—(Settled Land.)

I beg to move, in page 62, line 29, at the end, to insert the words

"The following words shall be added at the end of paragraph (iii) of Sub-section (1) of Section sixty-four of the principal Act, namely:

This paragraph shall apply to costs and expenses incurred for the protection of the settled land in opposing any such proposed scheme as aforesaid, whether or not a scheme if made."

I do not wish to embarrass my right hon. Friend nor to delay the passage of this Bill. I wish to take this opportunity to make an appeal to the Attorney-General, as he is probably aware, because he must have been approached by many, I think, in reference to this matter. A general impression prevails that while the postponement Bill was to be taken on this side of Christmas the Amendment Bill was not to be taken until Parliament reassembled in February. That impression prevailed not only among interested organisations and individuals, but in the Government Departments themselves. I am speaking for the moment for two organisations interested in this matter, the Central Landowners' Association and the Lands Improvement Company. Quite recently the Lands Improvement Company were approached by the Ministry of Agriculture with a view to discussing the amendments that were required to meet the points concerned with the improvement of land. The improvement of land is dealt with in a large number of public and private statutes and there are a number of perhaps unimportant or relatively unimportant points which should, however, be dealt with in the Bill. They are not and cannot be included in this amending Bill and they cannot now be put in. I want to ask the Attorney-General to give us an assurance that if the organisations interested in these matters can satisfy the Government Departments that further Amendments are required, facilities for a further short amending Bill will be given early next Session. In order to ask for a reply to them, I will formerly move, without discussing, the Amendment which appears on the Paper in my name.

May I first deal in a sentence with the Amendment which was actually moved? If my hon. Friend will be good enough to look, at page 80 I think it is, of the Schedule he will find that the Amendment he proposes to add at line 41 is in fact actually in the Bill. The Amendment is unnecessary because he has only moved to put in the Schedule what is already there. It appears in a different place.

Might I interrupt? This Amendment was drawn up by Sir Benjamin Cherry.

I do not know who drew it, but I suppose Sir Benjamin Cherry must have failed to remember that he put those very words in another part of the Clause. The fact that they are the same words is a testimony to the fact that they are drawn up by the same draftsman. I do not think my hon. Friend need be under any apprehension as to that Clause.

This Bill contains a series of Amendments which were thought necessary by the very expert Committee which carefully considered the matter in order to prepare the draft of the Bill. We are anxious to get these Amendments because, by common consent, they are necessary. If further Amendments be necessary, I can certainly promise sympathetically to consider any suggestions regarding further Amendments, but my hon. Friend will realise that I am not in charge of the business of the House, and I do not know what further Measures the Parliamentary Secretary to the Treasury and others may think it necessary to introduce. I cannot, therefore, on behalf of the Government give a pledge to find time for another Bill, without knowing what it is.

After what the Attorney-General has said, I have looked up page 80, and I find that this matter is provided for. Therefore, the hon. Member's Amendment is out of Order.

Schedule agreed to.

Schedules 5 to 9 agreed to.

Bill reported, without Amendment.

Motion made, and Question proposed, "That the Bill be now read the Third Time."

I only wish to say a few words with reference, particularly, to the last Amendment which was moved, and which has been ruled out of Order. I am attempting to do this as one who is very anxious to see the whole scheme of land reform go through, by reason of the fact that I heard one hon. Member say, "That shows how bad a Bill it is." It is due to the House to explain that the draftsmen of this Bill did not make the mistake of not knowing what was in the Bill. The fact is, that this particular Amendment, said to have been supplied by Sir Benjamin Cherry, was so supplied by him for the purpose of another Bill, before this was drawn, and ultimately for the purpose of this Bill put forward by him and included intentionally in the Bill. Therefore, there was no question of the draftsmen of this particular Bill not knowing what they were doing. I hope that as this Bill is going through, we shall be able to carry the whole scheme through and not require any further postponement of the Act of 1922.

I have it in Commission from His Majesty to signify to this House that His Majesty, having been informed of the purport of the Law of Property (Amendment) Bill [ Lords ], gives his consent as far as His Majesty's interests are concerned, and that the House may do therein as it may deem fit.

Question put, and agreed to.

Bill read the Third time, and passed, without Amendment.

Agricultural Rates (Additional Grant) Continuance

Considered in Committee under Standing Order 71A.

[Mr. JAMES HOPE in the Chair.]

Motion made, and Question proposed,

"That for the purposes of any Act of the present Session to continue in force the Agricultural Rates Act, 1923, it is expedient—

In moving the Resolution, which stands on the Order Paper in the name of the Financial Secretary to the Treasury, I would point out that its object is to make the necessary grant in respect of the Agricultural Rates (Additional Grant) Continuance Bill, which was discussed a week ago. A White Paper has been issued, setting out the financial provisions of this Bill, the passage of which is desired in all quarters of the House. The Committee will see from the White Paper that the aggregate amount of the grant for England and Wales was £2,859,000, and as regards Scotland, £388,418 for the financial year 1923–24. There is also a small financial provision as far as the Isles of Scilly are concerned. The Minister of Health explained last week that the latter provision is necessary owing to some mistake that was made in the original drafting of the Act, and the fact that payment has not been able to be made to the authorities in Scilly, owing to the mistake in the definition.

As far as the Estimate for this Bill is concerned, hon. Members will see from the last paragraph in the White Paper that it is estimated the charge upon the Consolidated Fund will amount to £2,900,000 a year for England and Wales, and £390,000 a year for Scotland. That is approximately the same amount as last year. The Committee will agree that inasmuch as we have passed the Second Heading of the Bill it is necessary to give the financial authority. As the amount is practically the same as in the previous Act, I hope the Committee will assent.

Before the Committee sanctions the expenditure of this money, there is a question I would like to put to the Parliamentary Secretary. A sum of £3,290,000 is to be provided by the taxpayers of this country for the purpose of adjusting certain rating anomalies. The Parliamentary Secretary has told us that that is the same as last year. We were told by the Minister last week that this Bill was likely to be put into the Schedule of the Expiring Laws (Continuance) Bill, and that it would become a hardy annual. How long is this to go on, year after year, granting this money from the public Exchequer, before the larger question of other anomalies of rating is dealt with. This question goes back to 1896. The original Agricultural Relief Act of 1896 was brought in to relieve the abnormal pressure on a certain section at that period, pending a general settlement. I have taken the trouble to turn up the Debates, and I find that the Act was put forward purely as a temporary Measure of relief, pending that wider settlement, which it was admitted in 1896 was necessary to adjust the incidence and the burden of rating in different parts of the country. If this temporary Measure to do justice to the agricultural interests had not been passed in 1896 we should not have had to wait all these years until the larger question was settled. Our friends the agriculturists would have seen long before this that the whole question was dealt with on equitable and sound lines, but having had this sop given to them over 30 years ago they, apparently, are passive, and the rest of the House, apparently, have not had sufficient determination to get from any Government a settlement of the larger question.

Before we go on year after year granting this money, we should have some definite promise from the Government that the larger question will be settled, not in the dim and distant future, but in the next Session of Parliament. Suc- cessive Governments have been dealing with this very thorny question, which bristles with difficulties. Because of those very difficulties there is the greater need for Parliament addressing its mind to the question, and doing justice not merely in regard to the anomalies that have grown up in the agricultural but also in regard to the anomalies which are as great, if not greater, in the urban districts. These three millions of money will be raised from the taxpayers, the great bulk of whom are resident in urban and industrial areas, and before we are called upon to vote this money to-day from their pockets we have a right to ask that the grievances and the injustices which they are suffering, to as great if not a greater extent than the agriculturists, shall be dealt with without further delay.

I hope the Parliamentary Secretary, speaking on behalf of the Government, will be able to promise that not merely during the lifetime of this Parliament but during next Session a Measure will be brought in to adjust these anomalies, which have pressed for so many years on the urban districts with regard to rating. It would be out of order to go into the question of these anomalies in detail, but I am in order in saying that before the urban taxpayer is asked to contribute the larger part of this money, we should have some assurance from the Government that the injustices and anomalies which he suffers shall be dealt with before this Parliament comes to an end, and I hope next Session.

The hon. Member's interest in this question is well known. He quite rightly says that there have been a good many occasions on which promises have been given in connection with this particular Bill that the larger question would be dealt with; but I think there is a good prospect on this occasion that something will be done in the future. We hope that the matter will be dealt with in the Valuation and Rating Bill, which we have great confidence and hope will be presented early next Session. I dare say my hon. Friend knows that in respect of that Bill exceptional steps have been taken. It has been circulated amongst local authorities, with a view to expediting its passage through this House. We have been in communication with the local authorities, and have received many suggestions from them. Therefore, my hon. Friend may be assured on this occasion that there is much better chance of this matter being dealt with at an early date. On that understanding, I ask the Committee to pass the Resolution.

Question put, and agreed to.

Resolution to be reported To-morrow.

SUGAR.

If manufactured at any time within.

The first four years of the period.

The next three years of the period.

The last three years of the period.

s.

d.

s.

d.

s.

d.

Of a polarisation exceeding 98 degrees

19

6

13

0

6

6

Of a polarisation exceeding 76 degrees, and not exceeding 77 degrees

9

8·0

6

5·3

3

2·6

Of a polarisation exceeding 77 degrees, but not exceeding 98 degrees

Intermediate rates varying between

19

6

13

0

6

6

and

and

and

9

8·0

6

5·3

3

2·6

MOLASSES.

If manufactured at any time within

The first four years of the period.

The next three years of the period.

The last three years of the period.

s.

d.

s.

d.

s.

d.

Containing 70 per cent. or more of sweetening matter

12

4·7

8

3·1

4

1·5

Containing less than 70 per cent, and more than 50 per cent, of sweetening matter

8

10·9

5

11·3

2

11·6

Containing not more than 50 per cent, and not less than 45 per cent, of sweetening matter

4

3·8

2

10·5

1

5·2

Containing less than 45 per cent, of sweetening matter

Rates bearing the same proportion to the rates specified as aforesaid in the case of molasses containing not more than 50 per cent. and not less than 45 per cent, of sweetening matter as the percentage of sweetening matter bears to 50 per cent.

b ) to make such incidental provisions as are necessary or expedient in relation to the said subsidy."— [ King's Recommendation signified .]

I rise on behalf of my right hon. Friend the Financial Secretary to the Treasury to move this Resolution. Perhaps the Committee will expect me to say a word or two in amplification of the details set out on the Paper. I have no doubt that hon. Members are generally familiar with the past history of this question.

British Sugar (Subsidy)

Considered in Committee Standing Order No. 71A.

[Mr. JAMES HOPH in the Chair.]

Motion made, and Question proposed,

"That it is expedient—

( a ) to authorise the payment out of moneys provided by Parliament in respect of sugar or molasses manufactured in Great Britain within the period of ten years beginning on the first day of October, nineteen hundred and twenty-four, from beet grown in Great Britain of a subsidy in respect of every hundredweight of sugar or molasses at the rates following:

During something like a dozen years various efforts have been made to establish the beet industry in this country. Those efforts included the abolition of the Excise Duty in 1922, and that was followed this year by the reduction of the Customs Duty, which had the effect of somewhat dislocating the then position in which the industry was carried on. The result was to force the late Government to give their attention to the question of what further steps were necessary in order to give this infant industry a chance of establishing itself and of allow- ing an agricultural experiment to be thoroughly explored. After considerable deliberation they formulated the scheme which is the basis of the scheme contained in this Money Resolution. We have found ourselves the heirs to their work which, as in this respect we thought it good, we have adopted.

The main proposal is a very simple one. It is to give a subsidy on the scale set out on the Paper to the industry, and while doing that to reimpose the Excise Duty that had been removed in 1922. At this stage I need not say anything except a passing word as to the general arguments that have led to this policy. A more appropriate occasion for that would, no doubt, be on the Second reading of the Bill. Suffice it to say that they were arguments agricultural, relating to the condition of the development of a new crop; arguments relating to employment, because it is evident that this crop and the general development of the factory production, if it can be developed, will lead to greater employment; and, lastly, an argument that always appeals strongly to myself, namely, that it was a desirable thing, if you could, to stimulate production of home-grown sugar. I think it is also true to say that the experience of all beet-producing countries goes to show that with this industry it is necessary to be prepared to give a measure of assistance in the earlier years. It is not a very easy business to start. For one thing farmers are naturally very conservative people. It is a badge of their tribe in all countries. They want a certain inducement before they will start out on a new departure. Of course, the general process of manufacture is highly technical, and before it will be undertaken both farmers and the manufacturing side of the industry demand a certain measure of stability.

The principal reason that led the late Government and this Government to substitute the policy of subsidy for the policy of remission of Excise Duty was that, unless you were to tie the hands of the Chancellor of the Exchequer in dealing with the Customs Duty on sugar, it was impossible to give stability to sugar beet production in this country. It is evident that, in so far as they depended for protection on the scale of Customs Duty, as soon as that scale was varied so their measure of protection would automatically be varied and instability would be introduced. I would also emphasise this—that if stability is necessary from the point of view of the industry, in my judgment it is not less necessary from the point of view of the State that the assistance which the State gives should be of a temporary character; that is to say, that the commitments that the State undertakes should be definite and that the State and the taxpayer should know where they are. For that reason it has been proposed that the subsidy shall be payable for 10 years on a decreasing scale, the first four years on a certain scale, gradually falling to extinction at the end of the term.

As a condition of that subsidy it will be necessary for the factory to pay the growers a certain minimum price for the beet which they buy from the farmers. During the first four years that price will be fixed in the Bill at a figure of 44s. a ton, with 15½ per cent. of sugar content. The second condition, which we propose to attach to the enjoyment of the subsidy, is one that will commend itself to all Members of the Committee. That is a condition that a factory, enjoying the subsidy, should have in its plant a considerable proportion of machinery made in this country. That is reasonable, because we are stimulating this industry by British money, and it is not unreasonable to ask and to secure that the greatest possible benefit inures to British industry out of the public money expended.

The percentage that will be suggested in the Bill is 75 per cent. It will be necessary to add certain conditions to that, and they will be found in full in the Bill. I hope, therefore, that these proposals will be found to be largely non-controversial and agreed. It is certain, I think, that we need not anticipate that it will raise again the issue that was so notably debated in this House last night. I think that the veriest Free Trader need not fear that the late Chancellor of the Exchequer, who was responsible for the initiation of these proposals, would have put his name to anything that could seriously be thought to impugn the principles of which he is so devoted a disciple. Indeed, every Free Trader, from the great economists downwards, would admit that it was not unjustifiable to afford a special measure of help to a nascent industry. Therefore, I do not anticipate any very great opposition under that head. There is, however, one aspect of the question that has excited some criticism. That is its reaction upon the business of the great refining industry carried on in this country. The refiners have complained that the scale of the subsidy as at present drawn confers a preference upon the production of refined sugar as compared with the production of what may be called raw sugar, and thereby they fear that the attempt which we are making to assist one British industry will merely be made at the expense of another established industry.

For my part I say at once that any such objection or consideration as that is entitled to the most careful and sympathetic consideration of the Committee. That I will endeavour to give it. I cannot help thinking, however, that that fear is based upon some misappreciation of the facts. Apart from the fact that the whole modern development of this business in Continental countries, as I am advised, favours the establishment of a continuous process in one factory, from the handling of the raw material, the beet, to the final manufacture of the refined sugar, as the most economic process, I think it might be supposed, from the objections that have been stated publicly by those who speak for the refining industry, that it was proposed in this subsidy actually to give a preference to refined sugar over raw sugar. It might even be supposed, from some of the literature I have seen, that no subsidy was being given on the production of raw sugar at all. That really is a great misconception. The scale of the subsidy we propose is exactly the same as the scale at present enforced in the Customs Duty. Therefore, I confess that it is a little bit difficult for me to understand why a scale which is so fair in Customs would necessarily be unfair in the subsidy. If at any time a case was established for the variation of the Customs scale, of course the subsidy scale would properly vary with it. I am advised that it would be almost impossible, or at all events administratively most difficult, to try to work on two scales for the two sides of what is really a single subject.

I go a little further than that. As this is a most technical question I do not wish to weary the Committee by going into the details unduly, but to those who are familiar with the subject I suggest there is only one basis on which you can deal with this question, whether you are dealing with it by Customs or dealing with it from the angle of subsidy. You must deal with it on the basis of the closest scientific approximation you can get to the amount of extractable sugar content at any given stage, and that is the basis upon which we have tried to proceed. We have sought to hold the scales absolutely evenly between the raw sugar interest and the refining interest. From my point of view as Minister of Agriculture, it does not make a great deal of difference—it does make some difference, but not much—whether a factory wants to make raw sugar or refined sugar. There are some people who have sugar factories, and who are putting up factories, who want to make fine sugar. There are others who, partly because the process is not so expensive and partly because they have other facilities, who wish to stop at the raw sugar process. Our scale is devised in an endeavour to mete out impartial justice according to a scale, the scientific value of which has been more or less accepted.

I would point out that there is nothing in the world to prevent the refining interest, if it wishes to do so—as I greatly hope it will—itself going into this business and establishing its own factories and thereby qualifying itself to draw the subsidy. I go even further. I think it might have been argued that the refining interest had certain grievances if the case had stood at this point, namely, that the subsidy was to be payable on the product of a factory, and if that factory finished raw sugar, it might have been argued that a man who took on raw British sugar and finished it off, up to the refining stage, was suffering an injustice in face of the competition of the other subsidised complete process carried on in another factory next door. Therefore I propose to extend slightly the principle by which, if a refiner prefers to go into the raw sugar process and carries the raw sugar away to his existing refinery, we propose to pay him the sugar subsidy on the refined sugar on the final stage in the refinery. I hope that by this concession we may go a long way towards removing whatever measure of injustice was—as I think wrongly—conceived to lurk in our proposals.

A few words in conclusion as to the cost of the Financial Resolution. The Committee will recognise that it is difficult to estimate with complete accuracy a cost which, obviously, depends upon the number of factories established and upon the type of those factories. The best estimate I can give the Committee is that it will cost £530,000 gross this year by way of subsidy. Off that has to be taken about half, which represents the income from the reimposed excise, which leaves the net cost to the State about £265,000. Those figures will be doubled for the second year, but beyond that it is impossible to make any forecast without knowing how many factories will be built. It may interest the Committee to know that three factories are in operation and eight new factories are contemplated, of which, I think, six are likely to be ready for working by October, 1925, and will be therefore ready to take next year's crop. That, I think, is all I need say by way of explanation at this stage, and I hope the Committee will support this Resolution, which I believe has great possibilities for the agricultural industry, and which I hope will do good to the agricultural industry and bring benefit to the nation as a whole.

Before the right hon. Gentleman sits down, would he give us some idea of the financial position of the three existing factories?

I do not know whether I can do so or not. I will inquire, and if I can do so, perhaps the hon. Gentleman will allow me to give him the information later in the Debate.

On a point of Order, Mr. Chairman. I have handed to the Clerk at the Table a manuscript Amendment to the Resolution. Is it to be taken now?

No, that will come on later. I will take care that the hon. Member's rights are not prejudiced in any way.

I should like to acknowledge the compliment which the Minister of Agriculture has paid to the late Government by acting as the step- father, the generous stepfather, of the offspring that we produced. He has spoken generously and in an encouraging way of the value of our proposal, and imitation is the sincerest form of flattery. I hope this particular step is not without augury for the right hon. Gentleman's policy in general. There is only one point on which I could wish he had left our progeny as it came into the world. I think the provision in regard to the 75 per cent. of machinery to be bought in this country requires careful handling, and is of a character entirely different from the general provisions for assisting the industry. To my mind it is not a sound provision. Desirous as we all must be that the maximum of trade and employment should accrue to this country, I ask the right hon. Gentleman to exercise special vigilance in order to see that the best possible machinery is bought without handicapping or interfering with the factories that are to be established. There was rather a warning experience in regard to the factory which the Government financed at Kelham. A great deal of the machinery had in the end to be replaced, and I feel it would take the gilt off the gingerbread if, when this delicate experiment was being made, there was even the shadow of an obstacle to the best possible chance being given in the way of good machinery. Do not let the right hon. Gentleman "spoil the ship for a ha'porth of tar." I am glad he has indicated a provision that the 75 per cent. rule may be dispensed with in suitable cases.

6.0 P.M.

It is interesting to speculate what the Conservative Government might have done had they continued in office from 1922 until now. Perhaps we may flatter ourselves that the Sugar Duty would not have been reduced as it was by the late Government, and that consequently this new scheme would not have been evolved. I should like to think that the late Government can take credit for having guided the footsteps of the Conservative party into this safer and preferable course. I realise that on this Resolution we must keep to the financial aspect of the case. It raises problems of extraordinary interest, firstly, as to what is the case for legitimate aid from the Government, and, secondly, as to the amount and duration of the subsidy appropriate to this very peculiar and highly-important matter of the sugar industry. I anticipate a certain amount of chaff from some quarters of the House regarding the late Government's lapse—as it will be called—in connection with the support of this subsidy. I think the right hon. Gentleman has already disposed of such chaff as may be advanced on this point by recalling that a profound Free Trader like the late Chancellor of the Exchequer spoke in the warmest terms of this proposal. I might add the testimony of another—one who will be much missed in our agricultural debates—namely, Mr. Acland, who at one time actually spoke against the system of subsidising this industry, but who this year announced himself a convert. I must confess that was also my experience. On the face of it, it is dangerous to subsidise any industry, the reason being that the country cannot afford it. You are spending money and diverting industry into a channel which is not the most profitable, and you are raising the expenses of other industries which are profitable. This case, to my mind, is wholly different. The proposals which the right hon. Gentleman has advanced embody no expense or handicap on the rest of industry but represent a saving, and possibly a direct saving in respect of public cost in regard to unemployment benefit——

Whereupon, Black Rod being come with a Message, the Chairman left the Chair .

Message from the Lords

That they have agreed to

Irish Free State Land Purchase (Loan Guarantee) Bill.

Expiring Laws Continuance Bill.

Canals (Continuance of Charging Powers) Bill—without Amendment.

SUGAR.

If manufactured at any time within.

The first four years of the period.

The next three years of the period.

The last three years of the period.

s.

d.

s.

d.

s.

d.

Of a polarisation exceeding 98 degrees

19

6

13

0

6

6

Of a polarisation exceeding 76 degrees, and not exceeding 77 degrees

9

8·0

6

5·3

3

2·6

Of a polarisation exceeding 77 degrees, but not exceeding 98 degrees

Intermediate rates varying between

19

6

13

0

6

6

and

and

and

9

8·0

6

5·3

3

2·6

Royal Assent

Message to attend the Lords Commissieners .

The House went, and, having returned ,

Mr. SPEAKER reported the Royal Assent to

1. Expiring Laws Continuance Act, 1924.

2. Canals (Continuance of Charging Powers) Act, 1924.

3. Irish Free State Land Purchase (Loan Guarantee) Act, 1924.

4. Law of Property Act (Postponement) Act, 1924.

5. Law of Property (Amendment) Act, 1924.

6. Aberdeen Harbour (Rates) Order Confirmation Act, 1924.

7. Edinburgh Chartered Accountants Annuity, etc., Fund Order Confirmation Act, 1924.

8. Scrabster Harbour Order Confirmation Act, 1924.

9. Glasgow Corporation Order Confirmation Act, 1924.

10. Banff Town Hall Order Confirmation Act, 1924.

British Sugar (Subsidy)

Again considered in Committee.

[Captain FITZROY in the Chair.]

Question again proposed,

"That it is expedient—

(a) to authorise the payment out of moneys provided by Parliament in respect of sugar or molasses manufactured in Great Britain within the period of ten years beginning on the first day of October, nineteen hundred and twenty-four, from beet grown in Great Britain of a subsidy in respect of every hundredweight of sugar or molasses at the rates following:

(b) to make such incidental provisions as are necessary or expedient in relation to the said subsidy."

When the Debate was interrupted, I was endeavouring to urge that you cannot compare the benefits arising from the proposal which my right hon. Friend has made, and the aims and advantages of protective measures as commonly understood. If you compare the aims in this case with those connected, for instance, with direct protection of wheat growing, you will see that they are entirely different, and, therefore, in approving of the policy of subsidising the sugar industry, the late Government were not enabling their successors to quote them as having in any sense approved protective measures as ordinarily understood. I should like to say just one word in amplification of what the Minister has said, to indicate the kind of benefits to which I refer. The Ministry of Agriculture spend, happily, very large and increasing sums on agricultural education. You are going to derive from the sugar subsidy a degree of education which corresponds with a very large amount of money spent upon direct agricultural education. You, for instance, necessitate the use of various new forms of machinery. You cannot even get the sugar crop up without using a lifter, which is quite unknown in connection with other crops, and you necessitate a quality of labour which is greatly in advance of that to which we have been accustomed for ordinary root crops. The beet requires cultivation with very great care. It is a delicate plant, which has to be handled in an entirely different way from swedes or turnips. I myself grew some in my garden in Essex on heavy land this year, in order to observe the nature of the plant. You have got there something entirely different from an ordinary root. You have a plant which spreads fibre downward and laterally to an amazing extent, fibre going off into almost invisible threads, and that is one of the means by which the beet crop has proved such an extraordinary fertilizer. Again, the Ministry spend very large amounts in research, and I do not doubt that the right hon. Gentleman is pursuing the question of what has been called economic research—actual experiments on farms conducted by farmers.

The expense of this subsidy is strictly comparable to the expense of economic research, and it is worth a very large sum spent in the manner proposed by Ministerial methods upon other kinds of research. A very large sum is worth spending for this purpose, because we are behind the whole of the rest of Europe in regard to sugar. They have arrived at an industry which is to them of extreme value, which in some cases is a totally Free Trade industry now, and we are almost the sole exception. The method proposed is the cheapest way of making such an economic experiment. It might have been more attractive to us on this side to make it by way of direct national administration in factories and farms, following the precedent of other administrative operations of the Ministry; but if you attempted that, you would be landed in expense to a far greater degree, as it would involve an enormous outlay on land, not to speak of factories, before you could make, by direct means, such an economic demonstration. You are doing it by this means in the cheapest way.

Then, in employment, as I have said, you are going to save a very large amount of annual expense, which would otherwise be incurred in benefits to the unemployed. In the case of the Kelham factory, I remember when I went there learning that the whole of the unemployed of Newark, about 600 men, were saved from taking unemployment benefit because of the existence of the Kelham factory a mile out of Newark. Again, you are cheapening the processes of arable farming generally, because of the extraordinary qualities of your root crop, which, instead of being a very expensive and very un-remunerative one, becomes a paying one. You are extending, therefore, the area of arable farming, and leading to further employment in that way. I think the factories in view involve an increase, it has been estimated, of as many as 2,500 men on the land, and at least 3,600 men in the factories. At the Cantley factory the greater part of the staff is got from the unemployed of the villages in the district, and a very large number of those winter workers would have come upon the rates as recipients of Poor Law relief.

The plan now proposed is an improvement upon the plan adopted in 1922, in many respects. It reduces the subsidy in amount. It sets a term to the grant of public money in any form. It makes perfectly open what was a veiled subsidy, and that subsidy might have become indefinite, and, perhaps, permanent. For a long time vested interests might have arisen under it, whereas now the State knows where it is. Perhaps more important than those advantages, it sets you free, as the Minister said, to reduce the Sugar Duty, whereas you were formerly hampered in the reduction of it, because of the system which prevailed. It was for that reason that the late Cabinet adopted the plan of fixed aid, allowing of any reduction of the Sugar Tax you like without affecting your claim, and I trust that, with the freedom that the plan gives, the present Government may yet go further, as means allow, in the reduction of the Sugar Tax than has yet been done The sugar industry will continue to be aided, whatever the Chancellor of the Exchequer decides in that direction.

There is another advantage in the new plan, that you get value for your subsidy in the stimulation of more factories. You had no stability before, and in order to tempt the capitalists you must give more knowledge of what the conditions will be. In this way you give a maximum of encouragement, and it is already vindicated by the fact that, certainly in the case of Ely, Kidderminster, Spalding and Ipswich, the factories will be working by the time the crushing season begins next year. Finally, this plan secures to the farmer—we were very urgent about that—a certain price, whereas before he depended entirely upon a free bargain, in which he had not quite sufficient advantage with the manufacturer. I think the price is an ample price, but it is not too ample. The price of 44s. is, I believe, exactly what it ought to be. There might be a more ideal plan adopted. If we could have introduced national factories, or co-operative methods in the factories, or if, as some capitalists felt was possible, we could have introduced a limitation of interest earned, and retained a greater financial advantage for the State, that would have been to the good. But those things were thoroughly gone into by us, and did not look feasible, and I believe there is no plan except that which has now been advanced which will serve the purpose in view. It may be said, that in the case of the old factories it is unduly generous. Well, those factories, which, after bitter experience, have got on to their feet, lost a great deal of money before public-spirited people dropped more than they could afford. Secondly, in the case of the Kelham factory, into which the Government put something less than £375,000, instead of having to cut your losses, you are going to get back in the value of your investment what is done by way of subsidy.

I regarded this not as one of the subsidiary matters in the outlook of the Ministry in the general agricultural programme, but as one of the first-class questions, and I thoroughly believe it to be so. In Germany, for instance, it is said that by using beet in the arable rotation the soil has been so enriched that the wheat crop on a given area has been increased by as much as 15 per cent. Holland furnishes the example of a country which, after a period of protection, became a model of Free Trade in regard to sugar, and the industry there, without any help at all, is an ex- tremely flourishing one. I hope and believe the same experience will be made good in this country, and I welcome what the Minister is doing. I can only repeat that I believe this plan, distinct in character from any other plan, represents a part of an absolutely sound economic policy.

I have listened with the very greatest interest, and I must say with the very greatest pleasure, to the right hon. Gentleman who has just sat down, who has set forth in such a clear manner a case for the safeguarding of industries so far as this particular industry is concerned. This particular industry is the rapidly growing backbone of the constituency which I represent and the constituencies immediately adjoining. The whole of East Anglia is looking to the confirmation of this subsidy with a view to obtaining much more employment than we have had in the past. I may say that in East Anglia we have had a very unfortunate experience with Government guarantees. A little while ago the Government of the day asked us if we would grow flax, and we put up factories; we had a Government guarantee and we arranged to grow this flax. After these factories had been put up, the Government, who had secured to themselves the right to hand over the contracts to any "responsible company," handed over the contracts, and almost immediately the factories closed down. I would ask the Government to be perfectly certain, when they ask farmers to make arrangements in regard to their crops, and give subsidies and guarantees, that in turn we shall also have some form of guarantee that the companies will not let the farmers down. We have in our district a very large number of unemployed, largely unemployed through circumstances over which they have no control. I was very sorry to see that the subsidy is only going to extend for 10 years. I should like to see it made for a longer period, because if we had it for a longer period we should have people building houses adjacent to the land engaged and feeling more confident that over the longer period they would be sure to get their money back.

Again, if you have a longer period you will encourage the men to go in for growing beet after once the experiment has started. At the present time the maximum subsidy in each case is for what may be termed the experimental stage. If after the first four years the farmer wants to take advantage of the subsidy and change the tillage of his land, and perhaps the outlook of his industry, he comes down to the smaller subsidy and, therefore, does not get the maximum benefit. If you extend it so that all the farmers who come in will have the benefits of the maximum subsidy after the first four years if they put their land under beet I think that will go a long way towards meeting the case. There is also the question of the rate. It has been said that the factories get too much, having regard to their capital outlay. I do not think they do. Having regard to the wonderful alteration which it will make in many respects in the farming industry and the farmers' outlook, I do not think that 44s. per ton is too much. I should like to suggest that consideration should be given to the extension of the period of the subsidy for the reasons I have named.

When the front benches agree upon a matter no doubt it is rather presumptuous for back benchers to disagree. I venture, however, to suggest that it is possible to put a very good and sound case up against this subsidy. We have had an instance in the remarks of the hon. and gallant Gentleman (Colonel Burton), who has just sat down, of the way the thing is built up, once the subsidy is established, and of the anxiety to continue the subsidy. There is one phase of the matter to which I should like to draw the attention of the Committee. The subsidy embodied in this Bill and the using of public funds to bolster up private enterprise has become very apparent since the War. We have had the Trade Facilities Act. We have had the Export Credits Act. We have had the subsidy for private builders in connection with the Housing Acts, and now we are engaged upon a Measure, the object of which is to subsidise out of public funds the creation of a new industry. What would hon. Gentlemen opposite say if a Socialist Government proposed to create a new industry, publicly-owned, and to use public funds for the purpose of making it common property? There is not a Member on the other side who would not be entirely opposed to public funds being used to create a new industry, even if you were benefiting the whole of the people. We have here, however, the spectacle of public funds being used to build up private enterprise, and to make it function, and when this public money has been expended the benefit goes to private shareholders. I trust, and think, that as I develop this argument it will become apparent to the Committee.

Take the history of the sugar-beet industry. Why did not the capitalists of this country develop sugar-beet in its earliest phases? Because, obviously, during the earlier days of the industry there were more remunerative outlets for capital than there are to-day. Although this industry is important to a sugar-consuming nation like our own, no attempt was made by private enterprise to deal with it in its earlier and costlier stages. I should like to take the history of this particular development, this idea of growing sugar in this country, because the Minister of Agriculture mentioned that the history of this concern was of interest to the Committee.

First of all, the Government commenced to subsidise Home-grown Sugar, Limited, to the extent of investing £250,000 of public money in shares. In addition, they gave another £125,000, which amounted to £375,000 in all. Since that original investment those shares have been written down to £62,000, and the whole of that loss written off. I should like to ask the Minister of Agriculture to communicate to the Committee to what extent the Dutch sugar interest;, are interested in this development in this country? We hear a lot from Members on the opposite side about the alien question when it suits their political interests, but when it is a question of profit-making in industry we do not find the same opposition to foreigners participating in the exploitation of the people of this country. The next point I shall mention is that, besides the investment of public money, I understand by the prospectus which was originally issued by this company that the Government gave a guarantee to shareholders up to the year 1930 to the effect that they would guarantee interest of 5 per cent. on the publicly-subscribed shares. Will the Minister of Agriculture tell us whether that guarantee still stands, and besides the subsidy, besides the writing down of our shares, whether or not we are still, up to 1930, meeting this 5 per cent, interest on the capital subscribed?

Another paragraph which is very vital in dealing with this matter is that dealing with the division of the profits. The community were asked to come in to meet the difficulties of the company in the earlier stages. When it comes to realising the profits then the Government shares do not take, in the first instance, a share of these profits. Immediately it becomes a profitable concern the private shareholders have the right of purchasing, out the Government-owned shares. When I first came into Parliament I asked for an inquiry into the development of this movement, and this interest in homegrown sugar. That inquiry was refused. When we trace the development of the policy surrounding sugar-beet, I think that we are entitled to ask ourselves why is public money being poured out to this extent, and at the same time no information—real, definite, inside information— and knowledge accessible to the general public? That is the first point. This subsidy has been 25s. 8d. per cwt. since 1922. Prior to that it was 6s. 2d. per cwt. I want to deal with the years afterwards, to tell about British home-grown sugar, and to demonstrate to the Committee exactly what it has been costing the British taxpayer and the British consumer.

In 1922 the total output of home-grown sugar was 7,011 tons. The remission of duty on that amounted to £178,000; so besides a loss in share capital borne by the public funds of this country, the general taxpayers were asked to subscribe, by additional taxation, £178,000 remitted on the sugar. That is not all. When this sugar, grown in this country, is placed on the open market the price is exactly the same as that of imported sugar. Those concerned collect from the consumer again the price of the tax through the Customs Duty. After having had the remission of the £178,000 in taxation, when they commence to sell their sugar in the market they collect from the consumer £178,000. That amounts practically to £400,000. [ Laughter .] That statement seems to cause hon. Members opposite some amusement. Let them think it out. The home-grown sugar pays no taxes. They get the remission in duties of which I have spoken. The sugar is sold on the open market with the tax taken off, but the tax is in the price! Home-grown sugar is not sold less the amount of the tax: it is sold at a figure equal to other sugar, and that means that the sellers collect that extra amount from the consumers of this country. The taxpayer makes it up, and then the consumers pay an equal amount. If my figures are not correct, it is open to any hon. Member who supports this principle to correct them, and to explain why Cantley sugar is charged the same price as imported sugar.

Then as to the position of the farmers under the Bill. As I understand the proposal, it is that in future a subsidy of 19s. 6d. per cwt. is to be given as a direct subsidy from the Treasury, but in this instance the Excise Duty of 9s. 8d. and two-thirds of a penny is to be imposed, making a net subsidy of 9s. 9d. and one-third of a penny. But the argument of the people who support the development of home-grown sugar is that they must have a net protective duty even in the form of the remission of taxes, or in the form of a direct subsidy of 21s. per owt. If we take the figures they are very illuminating. The Treasury pay in a direct form 9s. 9d. and the one-third of a penny, and in addition the sugar growers have the protective advantages of the Customs Duty of 8s. 11d.; therefore, the total protective duty now on home-grown sugar is 21s. 5d. and one-third of a penny.

Turn to the price of sugar to-day on the London markets. London granulated sugar to-day can be purchased at 33s. 3d. per cwt., including the tax of l1s. 8d. Deduct the tax and you get the net cost of the sugar, which amounts to 21s. 7d. per cwt. Here we have, in this Bill, actually a proposal of a direct subsidy from the Treasury; and in addition the gift to the manufacturers of a protective duty, on home-grown sugar of 21s. 5⅓d., when the net cost of sugar on the London market is only 21s. 7d. That means that the foreign grower has to grow his sugar, and take it to his own ports, from which it has to be transported to this country and then refined, and yet refined sugar can be sold at 21s. 7d. per cwt., and the net cost of this subsidy is 21s. 5d. I consider this is the most preposterous example of State finance and subsidy submitted to this House since I have been here, and whether it was introduced by my own Government or not, I intend to divide against this proposal, if I can get anyone to support me.

The next point is this. Why a period of 10 years? I had the privilege of going over the Cantley factory. Like any person in this House, I am in favour of developing British agriculture, I am in favour of developing new industries, but where I part company is here: if public funds are to be used to create new industries, I claim that the benefit should be a common benefit, and that the industry should be commonly owned after public money has been spent. Why 10 years? Anyone who visits a sugar factory can see that the cost of the plant, the cost of the machinery, and the cost of the internal fitments of the factory are easily the most expensive part of the whole concern. An enormous proportion of the total capital goes in fixtures and plant. A 10 years' subsidy enables a concern to wipe out entirely at public expense all this capital expenditure on plant, fixtures, machinery, and so on. At the end of 10 years, after the public Exchequer has made this possible, and when the industry is practically on a commercial foundation, and all the overhead charges are lifted off the business, then it is coolly proposed that we should allow private enterprise to reap the profits for ever and ever, amen. I can only conceive that the 10 years' period has been fixed because it enables them to get that part of their liabilities out of the way.

A point on which I wish to address particularly the Members on these benches is the effect of principles of this description on the question of price, and how it affects the consumer. Let us take sugar prices before the War, during the War and to-day, and see how the consumer is exploited on every occasion. In 1914 the cost of sugar was 16s. 1½d. per cwt., and the selling price, 18s. 8d., a gross profit of 13s. 6d. per cent., the gross margin being 2s. 6½d. In 1920, the cost went up to 112s., and the selling price to 138s. 8d. The gross profit, irrespective of value, goes up in proportion, as every business man knows, and was 14–29 per cent., the gross margin being 18s. 8d. The gross profit on that cwt. of sugar moved from 2s. 6½d. to 18s. 8d., a difference of 16s. 1½d. That is why the party opposite always want higher prices by means of tariffs, sub- sidies and every other thing they can introduce, because of the disproportion of the price the consumer pays, and it must increase profits. Where has the increased capital come from? Where did increased capital come from during the War? It was created out of the price. The consumer provided the increased capital necessary to run the industry out of the price he paid. When he had paid for that capital in the price of his sugar, then he is is asked to pay interest on the increased capital, because it is further invested, owing to the rise of price, and the more the cost to the people can be increased by methods of this description, the more do the people provide new capital through price, and then afterwards have to pay in the price the interest on the additional capital used in the business.

Even to-day, when competition is very keen—perhaps it was never more keen—the price has been brought down to its narrowest margin, and with the excess of world production sugar is exceptionally cheap. The price is 33s. 3d. per cwt.—as I previously said, 21s. net cost, eliminating the tax, selling price 37s. 4d., and the gross profit 11 per cent.—less than it was in 1914 or 1920. But even with the low gross profit caused by keen competition the margin is 4s. 1d., 1s. 6½d. more than in 1914. From a labour point of view, from a consumer's point of view, from a taxation point of view, the argument is overwhelming against giving encouragement to industries by subsidies of this sort, unless, after public funds have been expended, the whole of the benefits are retained for the whole of the people.

I want to conclude by pointing out again that this is only part of the general tendency during the War of those who stand for private enterprise; they are always ready to come to the State to help them when they cannot function for themselves. It indicates to me that industry, under the competitive system, is failing to perform its natural function. If this subsidy is given, other industries will come along with repeated requests. The Debate last night, although the Minister of Agriculture asked us not to link up the two Debates, is intimately linked with this proposal to-day, because in that Debate it was indicated that there is another range of industries which feel too weak and too feeble to stand on their own footing, and who are asking for a subsidy in another form through the Safeguarding of Industries Act. If I can, I shall go into the Lobby against this proposal. That is not because I am opposed to the encouragement of the sugar-beet industry in this country. It is a new industry. Private enterprise and vested interests have not at present got their grip fundamentally into it. If ever we are going to test the efficiency of public control against private enterprise, we must start with a new industry, started by the public for the public benefit. On those grounds I shall oppose this Motion, and I hope many other Members will do the same.

I do not propose to follow the last speaker into his general arguments on the subject of private enterprise or public enterprise, but I say that this is a fundamental industry which ought to have been started in this country long ago. It would recruit agriculture and it would be an immense help to the unemployed in Glasgow. I wish the hon. Member for Bridgeton (Mr. Maxton) were here, so that we might claim his support when we are thinking of the number of men walking about the streets of Glasgow who are now to be engaged in making sugar machinery. I do not think it was necessary to give companies the opportunity of getting even 26 per cent, of their sugar machinery from abroad. We could have got it all in this country, as I told the Kellerman Company, who foolishly went to a foreign country for their machinery. I told them that we in Glasgow were making first-class sugar machinery when the French people were sucking honey. We were beginners in making of sugar machinery, and there would be no trouble in getting the best class of machinery from Glasgow, so helping the men who are going about unemployed. But they made a mistake, they went abroad, and I do not think they were well served, and probably that is why so much money was lost in the experiment.

The hon. Member for East Ham South (Mr. Barnes) has taken grave objection to this proposal from the Socialist point of view, but I would remind the House of the history of sugar in another part of the British Empire. In Queensland, where a Government rules which is absolutely after his own heart, there was a sugar industry, but it was mainly run by black labour. The Labour Government of that day decided that they would not have their sugar industry run by black labour, and they repatriated all the blacks. Immediately the sugar industry was ruined, and sugar came in from Java, and even from Germany. The Labour Government wisely said, "This is not good enough. We are still getting sugar made by black labour, and we have lost an industry." They went to the sugar manufacturers and the farmers—the sugar growers—and asked them what they required to start business again, and were told, "You give us adequate protection for a reasonable number of years and we will start business again." They went and got the finance, and they started their industry again, and now it is a first-class industry, all run by white labour, and supplying the whole population of Queensland. That is what a Labour Government, a Socialist Government, did, and we have no reason to believe that because they are on the other side of the world they are not just as reasonable as was the Labour Government here when they instituted this particular scheme.

The manufacture of machinery would be an immense help to the engineering industry, and sugar beet growing would be still more a help to the agricultural industry, as both the ex-Minister of agriculture and the present Minister have said. The fertilisation of the land by beet-growing is something enormous. There is not only the question of the direct effect of the reasonable profit made by the farmer, but it would bring his root crops into reasonable proportions. At the present time, if we have a good year for potatoes, then all the farmers grow potatoes, there are far too many potatoes, and there is often a dead loss. But if the farmer can, devote a certain proportion of his arable land to growing beet and there is a fixed price which must yield a reasonable profit, he will always keep his potato area at a reasonable proportion, and this will allow him, by indirect action, to make a reasonable profit on his whole arable area.

The beet sugar industry never grew in any country without assistance at the start, because the capital expenditure is so enormous. After the Revolution in France the soil of France had been exhausted by inefficient methods of agriculture and the people were starving. The great Napoleon, who was cut off from the sugar supplies of the world by the British Fleet, decided to go in for, and started the growing of, sugar beet, and he recruited the soil of France, and that is why France blossomed into such a prosperous agricultural country. The demand for sugar in the world is illimitable. We import something like 2,000,000 tons of sugar every year. We used to get it largely from France and Austria. Our home production will never be able to undertake the supply of more than 25 per cent, of the sugar we need, even if we had all the available area under cultivation; but it would be an immense help in keeping down the price of sugar. The hon. Member opposite entered into a calculation to show that because the home producer got the same price as the foreign producer the sugar beet industry here did not help to lower the price. Of course it helps to lower the price, because it is an addition to the volume of sugar, and if you add to the volume of a product you are bound to lower the price. The demand for sugar in the world is getting more and more illimitable. Even the enormous supplies from Cuba do not over supply America. Possibly the reason for that is that the demand of America for sugar is absolutely enormous, principally because sugar is the main material in illicit distillation.

This is a fundamental industry for this country, and I am pleased to think the Labour party did a great deal for it. I am intimately acquainted with this particular industry, and I managed to get a good many of the Argyllshire farmers to grow experimental crops. When I saw that the Labour Government had taken it up, it gave me great courage. It made me think very well of them, because it is a patriotic thing to do. This industry would prove an enormous addition to the resources of this country, and I would appeal to the hon. Member (Mr. Barnes) to inquire a little deeper into it. If he does, he will find that the conclusions his leaders, as well as my leaders, have come to are sound conclusions; that this is not a party matter, but a matter of fundamental interest to the agricultural industry, and one which will be of immense

s.

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"Of a polarisation exceeding 98 degrees

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7.0 P.M.

I do not very much desire to introduce any element which might disturb the non-controversial character of this Debate. There have been a few expressions of dissent from the opposite side of the House, but on the whole I think the desire of every Member is that this proposal should be carried through with practical unanimity, if on certain important points agreement can be arranged between the beet sugar producers and those engaged already in sugar refining. I hope my right hon. Friend, the Minister of Agriculture, will not think me unkind if I say that the explanation he gave of the continuity and completeness of process in manufacturing sugar in continental countries was one of the reasons why white sugar should be produced by beet sugar factories in this country. The British sugar refiners, who comprise a very important national industry, are not at all opposed to the proposals put forward by the late Chancellor of the Exchequer and which are being submitted to the Committee to-day by my right hon. Friend. What they say is that, as sugar refiners have invested a vast amount of capital in the industry and have given a considerable volume of employment to people, they certainly ought not to have the condition of their industry prejudiced without very careful attention being given to the position they occupy by the Government and by my right hon. Friend the Minister of Agriculture. I know, of course, that he has done his best in the negotiations which have taken place to bring together the interests concerned, but I think he really might have given a little more time, if it were possible, to consulting with the sugar refiners and endeavouring to arrive at some agreement which would enable this great scheme of agriculture to be carried through with their complete approbation and without any opposition from them. The plain fact of the matter is, that if the scale of subsidies set forth in the Resolution be adopted in its entirety, this House is conferring upon the beet sugar manufacturers a measure help to the working people of this country.

I beg to move to leave out the words:

of Protection equivalent to over 21s. per cwt. against the sugar refiner, who is carrying on his industry by private enterprise.

My right hon. Friend says no, but the fact is on the paper. I am not sure whether I understand him to say that the preference of 1s. 11d. would also apply, but, at all events, you are giving to the beet sugar manufacturer, if you permit him to manufacture sugar of a polarisation exceeding 98 degrees, a measure of protection equivalent to 21s. 5d. per cwt., as against the man now engaged in the refining of sugar in this country. With all its desire to help agriculture and promote any scheme that will give wider opportunities of rural employment, and with its desire to make the condition of the agricultural community better than it is, this House ought to hesitate before lending itself to a proposal of that kind, which is a commitment which, as my hon. and gallant Friend behind me indicated, would become continuous. All the elements which enter into the welfare of the different interests concerned ought to be very carefully and fully examined.

An hon. Member on the other side quite properly called attention to the very largely increased output in the world's sugar supply this year. He pointed out, and I think perfectly fairly, that the measure of subsidy which it is proposed to give in this Motion to the beet-sugar industry is really 100 per cent. on the present prices of sugar in this country, leaving out the duty.

I do say that while nobody in this House desires more ardently than I do to see the progress of agriculture, if the concession of 100 per cent, in the establishment of a protective measure for the beet-sugar industry is to be made at the expense of those who are now actually engaged in sugar refining and who employ large numbers of people, I for one feel it is not an act to which this Committee ought to lend itself. The British sugar- refining industry is not merely one of great importance, it is an industry to which a certain romance attaches and which has had to secure its place in this country in the face of very serious difficulties, and I do not think this Committee or this House of Commons ought to lend itself to any attempt or attack on a great enterprise of a magnitude which deserves all the sympathy and consideration which the House can extend to it in the present circumstances of the sugar trade, without more careful and prolonged examination of all the factors which enter into this great industry.

The hon. Member for Cambridge (Sir D. Newton) and myself have put down this Amendment in order that these subsidies shall apply only to the production of raw sugar. I am confident that the British sugar refiner to-day is quite willing to co-operate with the beet sugar factory in converting his raw sugar into white sugar, but if a subsidy of the extent laid down in this scale for sugar exceeding 98 per cent, of polarisation is given, you are at once putting the beet sugar manufacturer, subsidised by the State, into conflict with the private refiner who has been carrying on his industry entirely on his own capital and own resources. I do not know why a greater effort has not been made on the part of the sugar producers for an understanding with the sugar refiners. The beet sugar manufacturer, propped up as he is by the State, ought to welcome the co-operation and help of the refiner, but he is not satisfied with the manufacture of raw sugar. The whole refining industry of this country would be glad to see raw sugar manufactured up to a polarisation of 98 per cent., but it is felt that when you come above that point you are entering upon a domain in which the State is directly using the taxpayers' money to strike a severe and cruel blow at the industry.

My right hon. Friend the Minister of Agriculture quite properly calls attention to certain comments which have appeared in the Press during the past few days. I would ask whether he has read the reasoned and carefully-thought-out article which appeared in the "Morning Post" this morning. Of course, I personally have a profound respect for the "Morning Post." I regard the "Morning Post" as one of the most competent and eminently informed organs of public opinion in the British Empire. But I was particularly gratified to find in a morning paper of that distinction such a clear exposition of the peculiar difficulties and problems with which my right hon. Friend is confronted in dealing fairly and squarely as between the refiner and the beet sugar manufacturer in relation to this proposition.

What I suggest is that before he brings in his Bill and finally commits the Government to the grant of a subsidy on white sugar, he should again make an effort to bring the refiners and the beet sugar manufacturers together and endeavour to make arrangements which would enable the whole sugar industry in this country to be carried on on lines of co-operation and friendly understanding, so that this great scheme may be proceeded with without creating for the manufacturer the opposition of the long-established sugar refiner. We are all anxious to help this scheme; and we all desire to see the beet sugar industry of this country a great success. Those of us who have had the opportunity from time to time of examining the progress of beet culture in various continental countries know what a profoundly important national asset it is in those countries where it is systematically carried out in a highly organised way, and we would like to see this industry established on firm foundations in Great Britain. But the Committee ought not to lend itself to the acceptance of a scale of subsidy which, in fact, means that you are putting out of business a number of large interests engaged in the refining of sugar and putting out of employment a large number of persons occupied in this industry.

In my humble judgment, for every man you put into employment by the expansion of these new factories in various districts, you are putting a man out of employment in the sugar refining factories. That is not a very sound or practical or constructive method of extending opportunities of employment. I venture to suggest that my right hon. Friend, whose sympathy for the farmer everybody admires, equally feels that the same amount of fair play and understanding ought to be extended to those engaged in a great industry like sugar refining. Of course the right hon. Gentleman opposite (Mr. Buxton), whose enthusiasm for the farmer has been always a striking feature of his discourses in this House, no doubt would like to see the State taking a very much bigger part in the nationalisation of agriculture.

I think my right hon. Friend the Minister of Agriculture, whose kindness of heart is so well known, ought to have a little more feeling for the manufacturers of sugar-making machinery. Some time ago I tried to induce the Minister of Agriculture to do something for the sugar industry in the West Indies, so that we might send out there sugar-producing machinery manufactured in Glasgow. I would like to see every item of the plant required in these beet sugar factories made in this country. Although 75 per cent. British manufacture has been spoken of in this connection, I think the whole of the machinery could be produced in this country. For the reasons I have stated I feel that this question ought not to be trashed through the House without more consideration. The great sugar refining interests of this country have taken great risks and made great speculations. They have contributed substantially to the State in taxes, and I do not think that they ought to be prejudiced or placed in the position they will occupy under these proposals, which ought to have a much more fuller and sympathetic consideration on the part of this Committee.

Several points of view have been put before the Committee in the interests of the agricultural community and the sugar refinery machinery manufacturers, but I submit that there is a further point of view. We ought to consider, not only the interests of the sugar refiners of this country, but also the interests of the port of Greenock, which I have the honour to represent, which has been built up on the sugar refining industry. Here a vast industry has been centred, to which sugar is brought from all parts of the world to be refined in Greenock. I appeal to the fair-mindedness of the Minister of Agriculture this afternoon. We find ourselves to-day in a very strong position on this question. The Government have taken over the Bill brought in by the Labour Government, and I believe myself that the present Government would hardly have ventured to have submitted this Resolution if it had not been that the Labour Government in July last made a similar proposal. This evening, finding that the two Front Benches are agreed on this question, I wish to appeal to the fair-mindedness of the House of Commons. I cannot help feeling that when hon. Members realise the grave injustice which they are about to inflict upon a legitimate industry in this country, they will hesitate before they pass this Resolution

What is the situation according to the Minister of Agriculture? The farmers are going to be paid 44s. per ton for raw sugar. Hon. Members know that eight tons of raw sugar are required for one ton of refined. Refiners will receive from the Exchequer a subsidy of £10 a ton, with the result that their raw material—and I am sorry the Minister of Agriculture is not in his place—will cost £7 12s. per ton. To this must be added a fair figure for the cost of manufacture. They are going to receive an enormous benefit from the pockets of the taxpayers, because the present price of refined sugar is some £14 a ton. The average price during the last year was about £20 per ton. If the Committee adopt this Resolution this evening they are going to injure and hurt the present refineries which have been erected in this country, because they are going to give a pecuniary benefit to the factories which will be erected under this proposal during the coming months, and they are giving them this large subsidy at the expense of the sugar refiners.

Millions of capital have been invested in this business and a large number of people are employed in the industry. Today the facilities for refining raw sugar are much greater than the market can consume. In other words there is to-day in Great Britain a considerable quantity of refining machinery not being employed at the present time, with the result that there are a large number of people out of work in the refining industry. Under this Bill you are going to erect new refineries, and on this point I would like to address one or two questions to the Minister. The right hon. Gentleman the Minister of Agriculture this afternoon said that he had fixed the scale according to the Excise Duty. Is he not aware that when the present scale was fixed the duty was paid when sugar came into this country, but to-day it is paid when sugar is taken out of bond, which is a fundamental difference.

The right hon. Gentleman has made an appeal to the sugar refiners of this country. Does he really think that the sugar refineries which at present exist are near the areas where the sugar will be grown? Has he made any inquiries upon that point? According to my information the areas where the sugar will be grown in the future if the Resolution is passed are some distance from the places where the present refineries exist. Has the right hon. Gentleman considered, if you grow sugar in this country and erect these factories, whether it is economically possible to melt the sugar successfully. To do that large quantities of coal or cheap power are required. Is that available now where the sugar can be grown? It has been stated that the present financial situation is such that this Resolution should be passed this afternoon, otherwise the £375,000 which has already been spent will be lost. Would it not be better to cut your loss rather than pour out from the coffers of the Exchequer large sums of money in this way?

I do not deny that it will be very difficult for the present House of Commons to stop the passage of this Resolution, but I would like to point out that a large sum of money is involved. When this Resolution is passed large financial interests will be involved. The Minister told us that he anticipates that eight further factories will be erected, and that they will be operating in October next. I have seen it stated that during the coming months, or rather in years to come, there may be as many as 50 new factories erected in this country. There is a large sum of money involved in this large subsidy which will go into the pockets, not of the present refiners, but into the pockets of those who erect these new factories during the coming months. Why penalise the present refiner? Why give this large sum of money to these favoured individuals and at the same time hurt the industry which has grown up in such places as Greenock, Liverpool and London?

I could not help thinking as I listened to the Minister of Agriculture, knowing him as I have done for many years past, that he should review the situation again, because I think he has acted rather hurriedly. If he passes this Resolution he is not only doing a great injury and a moral wrong to the refining industry of this country, but he is doing more than that, for he is hurting two large ports in this country where they have erected large docks and constructed quays, and in many cases they have built special ships to bring sugar from such places as Cuba and other distant parts of the world to our ports. By this proposal you are hindering and hurting every one of those industries. I hope that the Minister will not press this Resolution this evening. As a matter of fact we only heard of this Resolution a few days ago. I am afraid there is some strange influence at work in connection with this matter.

In July last I asked the late Chancellor of the. Exchequer to receive a deputation from the sugar refining industry, but the Chancellor of the Exchequer in the Labour Government refused to receive a deputation of that kind from the interests involved. A fortnight ago the Minister of Agriculture heard the views of the refining industry, but he did not convey to those who heard his statement on receiving that deputation any idea that the Government were going to press this Resolution through the House of Commons to-night. They have been taken unaware. I appeal to the Minister on this question, and I would like to point out that he is going to cause an injustice which may lose the Government their large majority if he forces through in the last hours of this part of the Session the first stages and really the most important stages of this proposal.

I hope the Minister may yet withdraw this Resolution, for I am quite convinced that Members of the House of Commons will come to realise that by this subsidy, although they are anxious to create a new industry in this country, they are doing it at the expense of an old one, they are hurting employment, and hurting people who have put their capital in bygone days into this industry. Although it may be thought that this scheme is in the interests of the agricultural industry, the larger share of this subsidy is not going to the agricultural industry, is not going to those who are doing hard work, day by day, in the open air, but into the pockets of the men who are going to erect these refineries throughout the country. If the larger share of this subsidy were going to improve agriculture, there might be more to be said for it; but the larger share of it is going into the pockets—I use the word definitely—of those who are going to erect these factories. The minister said this evening that the large subsidy would only be for four years, and the total subsidy will disappear in 10 years. I am sure he meant it, but we, who have had some experience of these matters, well know that, once you start a subsidy such as this, it will continue for a much longer period than was originally intended.

In the case of the original scheme of three years ago, under which three factories are presently operating, certain advantages were held out which it was said would disappear in a few years' time. It comes on again this evening, and for a further 10 years those interests are being extended. I am quite sure myself that, once this principle is established of giving a large subsidy from the pockets of the taxpayers to a particular industry, it will create such a vested interest that it will be impossible, or practically impossible, for any Government during the next 10 years not to keep to the original figure in the Financial Resolution. I hope, therefore, that the Minister will not press his Resolution this evening. There is no real hurry. We could easily take the first stage when Parliament meets in February. By so doing I believe the right hon. Gentleman would give to the interests concerned more time to study his proposal, and if by that he may secure some agreement, I believe it would be not only in the interests of the beet-sugar industry, hut in the interests of the refining industry as well.

The fact that this proposal was introduced last Session, after a great deal of consideration, by the Government formed by Gentlemen opposite, and that the plan of their predecessors has been taken over by the present Government, indicates, I think, that there certainly is general agreement as to the need for doing something to help the beet-sugar industry. Therefore, I feel that I am dispensed from any necessity for going largely into that question, and I should like to invite the attention of the Committee to the smaller point raised in the Amendment of my hon.

Friend the Member for Moseley (Mr. Hannon). If my hon. Friend's suggestion of eliminating the words "Of a polarisation exceeding 98 degrees" were carried out, the effect would be that no subsidy would be given on refined sugar, and in essence that would mean that the Government was acquiescing in the establishment of a new industry not on an economic basis. It would mean that the subsidy would be given, not for sugar, but for sugar with a considerable amount of dirt in it.

Wherever the beet sugar industry has been started, it has always found itself, in the initial stages, in conflict with the refining industry, but in this case I really do not see why the refining industry should not co-operate. As the scale stands, there is nothing to prevent the refining industry from starting sugar factories throughout the country which will produce sugar of the character to which they want to confine the subsidy, and this sugar could be worked up and refined in the existing factories. I am tempted to think, however, that the reason why the refiners are not in favour of that proposal is because it is uneconomic and out of date. My opinion—and it is based on very reliable technical advice, which I have found by experience to be reliable—is that the difference in cost between the plant necessary to turn out raw sugar of a polarisation of 98 degrees or less on the one hand, and the plant necessary to turn out refined sugar, that is to say, sugar of a polarisation exceeding 98, is, in the case of a factory dealing with 500 tons per day, only £2,000. The capital cost is obviously so small as to be negligible. As regards the working expenses, so far a labour is concerned they are nil; the same labour suffices to complete the process of refining. An additional quantity of 10 tons of coal is required, costing to-day, say, £15, and, if you add something for bags, you will find that the additional cost of producing refined sugar of a polarisation exceeding 98, as compared with stopping the process at or below 98, works out at something like 1½d. per cwt. I say quite deliberately that to oppose the erection of factories capable of turning out refined sugar is uneconomic and reactionary, and that the Government would not be entitled to subsidise an industry on that basis.

There is another point, and a very important one. I do not suppose that anybody would ever have heard of the beet sugar industry in this country, or of any attempt to establish it, if it were not well known that the establishment of sugar beet cultivation has been of enormous benefit to arable farming wherever it has been tried. I have heard it said by a great authority, who was long a Member of this House—Lord Ernle, as he is now—that nothing did more to stimulate high farming in Germany than the development of the sugar beet industry; and I have heard Germans say that they consider they have become independent of foreign sources of meat supply owing to the extremely high value of the dried beet "slices" as a cattle feeding stuff. Nobody can deny that agriculture is more in need of assistance, and more deserves assistance in the national as well as in its own interest, than any other industry in the country to-day, and, incidentally, I suppose no one will object to helping the engineering industry. If that can be done, as I think it will undoubtedly be done, by this Measure, so much the better for all concerned. If, however, you really mean to assist agriculture, and are prepared to give a Government subsidy to beet growers, you cannot give as high a subsidy in the case of beet supplied to a factory which only turns out raw sugar as you can in the case of beet supplied to a factory which turns out refined sugar.

My right hon. Friend made a suggestion to-day which ought to meet the case of the refiner, though I cannot help feeling that it would be difficult to carry out in practice. My right hon. Friend proposed that the scale should remain as it is, but that the payment of the subsidy should be divided between the factories that produce the raw sugar and the refineries that work up the raw sugar into the finished article. If that can be done, it gets over the difficulty, but it seems to me that it will be extremely difficult, from the administrative point of view, to assess the amount that the farmer is going to recover, on the one hand from the manufacturer of raw sugar, and on the other hand from the refiner. How are they to share out the proportion which each has to give to the farmer? If that can be done, then I think the case is met, and no one will object; but short of that, if my hon. Friend's Amendment were carried, it would be impossible to give the farmer the same price for his beet that can be given if that beet is to be turned into refined sugar, because the product of the farmer's beet will not then be refined sugar, but raw sugar, which is sold at a very much lower price on the market to-day. I think the point is quite clear.

I come back to my original contention that, if you pay a subsidy on raw sugar, you are really paying a subsidy, not on sugar, but on a certain amount of sugar and a considerable amount of dirt. If you give the subsidy on refined sugar, you are paying the subsidy on sugar from which all the dirt has been removed. That is the whole story, and I do hope that both the Minister and the Financial Secretary will decline to accept my hon. Friend's Amendment. It is uneconomic and it is unsound. The matter can be put in a nutshell. It is inconvenient for the refiners to have to meet competition, I quite agree, but they have to bring their business up to date, and to adopt the same principles that have been adopted by refiners in America or in Canada. There is room for both. The quantity of sugar produced in this country this year, or that will be produced next year, is, surely, negligible, and I am amazed that an industry which boasts of its efficiency—and no doubt it is efficient in some respects—and which deals with a matter of 1,750,000 tons of sugar per annum, should get into a state of despondency and alarm at the prospect of a miserable 20,000 tons of sugar being turned out, incidentally enormously assisting the farmers, relieving unemployment, improving matters in the engineering industry, and establishing an industry which has been of immense advantage wherever it has been set up.

Let me try to clinch that contention by reminding the House of what takes place now. Supposing that all the sugar imported were raw sugar and were refined in this country—a matter of 1,650,000 tons of sugar. Taking the price to-day at 15s. per cwt., it works out at something like £24,000,000, which is what we send abroad, or would have to send abroad, in the shape of goods or money, for the purpose of supplying our requirements in sugar. Suppose—which is not the case—that the whole of that sugar were refined in British refineries. They require about 40 per cent, of coal, which, at 15s. a ton, amounts to something like £450,000, and I believe it costs about 3d. per cwt. in labour to convert raw sugar into refined sugar. That comes to another £400,000, or say, £1,000,000 altogether. Therefore, we should have to send abroad, in one way or another, necessarily affecting the exchanges, a sum of £24,000,000 in order to give £1,000,000 worth of work at home and not interfere in any degree with the refining industry. Surely in the national interest, from every point of view, it is wiser to make use of our soil in growing this expensive crop—expensive from the point of view of importing it from abroad—and so produce an expensive foodstuff in this country, the production of which results in the employment of a very large number of people, not only in the factories themselves, not only on the land, but in a branch of engineering industry which I sincerely hope will expand with the production of beet sugar. For all these reasons I hope the Government will not accept my hon. Friend's Amendment. I am not surprised to find the party opposite, who loudly proclaim themselves progressive, once more supporting a very reactionary procedure, but I am surprised at my hon. Friend joining forces with them He will settle that with them. I hope the Government and the Committee will not pay much serious attention to the Amendment.

My only reason for intervening in the Debate is the fact that I represent a constituency where two of the largest firms in the country engaged in the refining industry have their headquarters—Messrs. Tate and Lyle. We have no particular love for either of them as employers of labour. We have had to fight for everything we have got, and we only get what we fight for. Therefore there is no consanguinity of relationship between myself and hon. Members opposite in that respect, whatever our other friends may think. After all we have to remember that we have started upon the slippery slope. We have decided to subsidise industry. Last night we were discussing Imperial Preference and the desire to support trade, but the idea that was prevalent last night was that we were going to guarantee that our own people should have the first chance. After all we represent constituencies. Are we going to support legislation which is going to take work out of the hands of the people we represent? If it could be proved to me that, as a result of this policy that is now going to be carried into effect, our people who are working the factories in Silvertown, large numbers of whom are now out of employment, are going to be benefited by this Resolution, I should be prepared to vote for it with both hands and feet. But we know what is going to happen. We know what the wages and the hours of labour will be in these districts where these new big sugar factories are going to be established as against the conditions we have been able to establish in the districts where the industry already exists.

Are the Government going to make it a condition of the subsidy that they are prepared to give that the hours of labour and the conditions of employment are going to be equal to what they are in the non-subsidised districts? In our district we shall be taxed to help to pay the subsidy. The agricultural labourer in Norfolk has 21s. 8d. to keep a family of 10. Is that the kind of wages that are going to prevail in the new subsidised industry? We do not object to the subsidisation of industry. The principle has been agreed to. We want to see agriculture develop, but we want to see it develop under better conditions than have existed up to now, and before any subsidy can be given we ought to have an understanding. Why should the firms in the Silvertown area be compelled to pay decent wages, comparatively speaking, with reasonable hours of labour, and let these: other people come along and take money from the State and sweat their employ½s? Therefore I support that suggestion that we should have a joint committee for the purpose of laying down the conditions under which this subsidy shall be given. It shall not be given for sweating. It shall not be given for the opportunity of people taking advantage of the State guarantee for a period of years. I therefore ask that, before this is finally decided, the right hon. Gentleman should give an opportunity for all the interests concerned, the employers who are at present carrying on the industry with- out subsidy and those who in the future may carry it on with a subsidy, and the workers who are interested as well, to get together and have an opportunity of coming with a considered scheme whereby this subsidy can be carried into effect. I am not opposing the subsidy, because I understand that there are certain industries that want nursing, like some hon. Members on the other side. [ Interruption .] We have so many whips that no one knows who holds the whip.

I must remind the hon. Member that the Amendment before the House is as to whether this subsidy should be confined to raw sugar.

I agree with the Amendment that it should be confined to raw sugar. The right hon. Baronet who last spoke talked about dirt. The dirt that he talks about is really a by-product. Come with me to my constituency to-morrow and I will show you that what you call dirt is turned into raw materials for other industries. The very fact that you referred to the by-products of the beet-sugar industry demonstrates that the farmers can use it. But the farmers are using it now. Ask Sir Leonard Lyle, who was a Member of the House, what they do with the products of their factories after they have got their refined sugar. Ask him what is left. There is nothing left but the tins. We do not object to the subsidy being given, realising the necessity of it under the circumstances, but we think there should not be a preference given to a new industry against an old industry, and the sugar-refining industry is an old one. It has established itself and it is capable of developing if it gets the opportunity. Hon. Members opposite suggest that they should be asked to develop the industry in other parts of the country on sugar-beet lines. If that is the case leave the field open to them. Do not let the Government come along and assist someone else to take the place away from them. To-day there are a number of Hungarian farmers, people who understand the sugar-beet industry, forming a company. You other people tell us we must not allow the foreigner to come in, but he has already come in, floating companies to work this industry upon the basis of your subsidy. Therefore we ought to support the Amendment, or the Government ought to reconsider the matter in the light of letting all the people concerned, the workers and the employers on both sides, come to a considered scheme in conjunction with the National Board of Agriculture.

The Committee has had rather a wide discussion on what is really a narrow Amendment. The proposal is so to alter the scale that British beet factories should lose all subsidy if they go on beyond the early stages of manufacture and produce the fully refined article. That is to go very much further than the British sugar refiners have ever asked, and I do not know really whether my hon. Friend the Member for Moseley (Mr. Hannon) meant his Amendment literally. At all events what is in the minds of a good many of those who support him is that the scale, as has been alleged by the British sugar refiners, is not a fair one. Speaking for the Board of Customs and Excise I must put before the Committee the reasons for which we absolutely dissent from that view. The higher the polarisation of sugar the more sugar there is in proportion to what has to-day been graphically described as dirt. Experience has shown how much pure or refined sugar can be recovered from each degree of polarisation, and 98 degrees and upwards is the fully refined product. The Customs scale has been worked out to show the corresponding percentage of sugar to each degree as you go down the scale towards the raw sugar. The Schedule which is incorporated in the financial Resolution, translates that Customs scale into terms of money by a simple method of proportion. It is not professed that the Custms scale is absolutely uniform for all classes of sugar and for all refining, because there is an admitted difference in the yield of various kinds of sugar and in the result of various types of machinery, but what the Customs authorities say is that the scale represents the relative sugar values of each degree of polarisation as fairly as could be arrived at.

That is something of an advance, because we have been told the refiners object to the scale. I am very glad to hear that from my hon. Friend.

That is what I should have expected from recent representations. As a matter of fact the refiners used to complain of the scale from exactly the opposite point of view from that which they now profess. When the scale was originally laid down they said it allowed for the recovery of too high a percentage of sugar from the raw sugar. Now they are saying the contrary, and really I think we can strike a balance between the two complaints and agree with my hon. Friend the Member for Moseley that the scale is as fair as experience can produce. Indeed Messrs. Tate and Lyle wrote recently in connection with this Bill to the Customs' authority saying:

They go on to put an argument which the Customs really cannot understand, and to say that though this is fair for the Customs and Excise, it is not fair as a basis of subsidy. We cannot agree with that. We want to have a fair scale which will hold the balance equally between the various interests and which will give a fair allowance in proportion to the amount of sugar to be recovered at every level in, the scale. We believe that the scale does give that fairness and that it offers no preference to the refiners as against those declaring the sugar with more of the molasses and other materials in it. But if the scale is unduly favourable to the refiners in declaring sugar at high polarisation, it is perfectly fair to the position of the refiners, as was pointed out by the right hon. Gentleman the Member for Ayr Burghs (Sir J. Baird), to give them the opportunity to establish factories and to share in the benefits of that system to which they profess to anticipate such terrible results for the industry. If they do not want to do that, the concession which my right hon. Friend announced this afternoon, by which they can take over the sugar in an unrefined state and refine it themselves, and get a payment per hundredweight when it has been refined, puts them on absolutely equal terms.

My right hon. Friend, I believe, does not think that it would put them on equal terms.

Yes, I do. I think that the scale is absolutely fair. Take the factory that is going to be built in my constituency by a Czechoslovak group. They came to see me only yesterday, and they said that they did not see why these factories should refine, and they personally are not going to put in refining machinery. There is nothing to prevent the refiners getting the benefit which they see between the lower degrees of polarisation and the upper degrees—a benefit which we dispute. As a matter of fact I do not think the refiners really do want to limit the subsidy to the lower scale. This is the report of their case as put before the Board of Customs and my right hon. Friend the Minister for Agriculture. The British sugar refiners ask that the subsidy should be confined to unrefined and withheld from refined sugar. This is, of course, the same case as my hon. Friend put this afternoon. But in default of that they ask that the subsidy scale should be adjusted to give more subsidy proportionately to unrefined than to refined sugar, so that factories might be encouraged to produce the unrefined article which would have to be sent to the existing refineries for refinement. See what that would mean. It would actually penalise the British sugar producer as against the foreign producer. At present a consumption of 1,500,000 tons exists in this country and there are about 500,000 tons brought in ready refined from abroad. That sugar under this proposal would still come in. The foreign refiner would be allowed the full benefit of our market, but a new and promising sugar industry in this country would not be allowed the same opportunities for economic production but would be prevented by artificial working of the scale against them from engaging in this industry, the product of which in foreign countries is given free entry in this market. That is a policy with which we cannot agree. We feel that in this subsidy we must hold the scales absolutely even and not interfere as between one part of the industry and the other. We do not think it would be fair to give preference to existing refiners and by so doing to penalise the new factories from going into business.

I propose for my part to support this Resolution for very simple reasons and for quite non-technical reasons. It seems to me, to begin with, rather difficult for anyone on this side to oppose this Resolution in view of the fact that it was originally proposed by the Ministry of Agriculture of the Labour Government; to put that on one side, there are questions of conscience which make it possible for Members at some times, but not always, to be in accord with their party. There are, however, much simpler reasons. The alternatives are not those which were stated by the hon. Member for East Ham. The question is whether you are going to bring an industry of a very important character into existence or whether you are not, and that is all. I agree with my hon. Friend that it would be desirable under other circumstances to secure that the whole of the benefits and profits of that industry should go into the public pocket, bu I regret that for the next few years at any rate it will be impossible to persuade hon. Members opposite to introduce any kind of legislation of that character. I do not therefore propose to put myself into the impossible situation of obstructing the coming into existence of an industry because I cannot have it in precisely the way in which I should like to have it myself. It does seem to me that these questions which have been raised from these benches, as to whether industry should be public or private, as to whether profit should go entirely into the pockets of the shareholders or into the pockets of the State, and important question as that is, that question can only be settled when there is an industry to talk about, and I am myself exceedingly anxious that we should get this industry started. I represent a town constituency, a very slummy constituency, a very much overcrowded constituency, where we are terribly plagued with the unemployment difficulties which face the whole of the country, and I have come myself to the conclusion, as I think many other Members have, that unless we get agriculture working in this country efficiently on a very much higher standard of production than at the present time we are not going to be able to solve our unemployment difficulty.

I should support any Measure which had the object, or the practical certainty, of creating an important addition to our agriculture in this country. When we realise how very important the beet sugar industry is, and how important it has been for foreign countries, and think of the benefits it may bring this country, I do think that you only need to look at it from that point of view to get your views into a proper perspective to realise that the rather doctrinnaire abstractions, which have been talked about this afternoon, ought really to be put into a second place. The increase of agriculture is absolutely essential, because unless we do that there is really no way of improving the standard of life in this country. We have got to improve agriculture, we have got to increase the output of foodstuffs from our own land. Unless we do that we are not going to raise the standard of life. As a first object of Socialist policy, I hold the view that we ought to aim at raising the standard of life, and in that I believe we are at one with all Members of the House. In that case, why should we, because this happens for the moment to be supported by hon. Members opposite, oppose it in the spirit of unreason, because we, at this particular moment, are in Opposition. Let us support this because it is going to increase the yield from the land and from agriculture, help to solve unemployment, help to create an important industry which will have advantages not only for the land but, as has been stated by other speakers, for the engineering industry and others. I do urge some of my Friends on these benches, do not let them be led away by Liberal impossiblisms and mistake them selves by calling it Socialism.

In the course of the opening speech made by the Minister of Agriculture I was in terested to hear him say from the agricultural point of view it made little or no difference to him whether the subsidy goes on raw sugar or on the finished white sugar, and I believe that that statement is perfectly in accord with the facts. It is for that reason that I am going to urge the Minister again to consider the question of the scale and the basis upon which this subsidy shall be granted. For my part, I feel that information contained in this scale, in justice to the House, should have been in the hands of Members at a much earlier date than has proved to be the case. It was impossible to get any information as to whether the scale would be contained in the Resolution or what that scale was to be until we received the Order Paper this morning, and when we are asked to consider matters so intricate as are raised by this scale it is only fair to the House that information should Be made available at an earlier period. So far as the industry of agriculture is concerned, I think that every Member of the House who is interested in the industry—and who are not directly or indirectly—will appreciate the proposals which are being submitted to them. I hope that some action will be taken and some plan evolved by which these various schemes and proposals which have been indicated as being now on the tapis will be co-ordinated. We want to see factories erected in those districts where they will be most useful, and that, as far as possible, all the areas in the country will be properly covered by these factories. I hope that it will be someone's business to co-ordinate the scheme for establishing these factories, and that we shall have some system of planning on those lines.

Then there is another point which I think should receive attention. That is the development of beet. We want a good seed and we also want to see that the sugar yield in the beet is gradually increased. A great deal of scientific work and research has been done in that direction abroad, and I hope more attention will in future be taken in this country. Some of us feel that the scale, although it may be a workable scale, is not the beet possible scale, having regard to the various interests concerned. We feel that it weighs the balance against the refiners. When an industry receives special and exceptional treatment, some of us think that exceptional care should then be exercised to see that, in giving that special treatment to the industry, you are not disturbing or upsetting, or rupturing and disintegrating, the foundations of some other allied and perhaps older industry. We believe that it is quite possible to work out, in conjunction with the refiners, a scale which will be fairer to all parties concerned.

Some of us feel that the proposals will tend rather to retard the setting up of factories than to encourage them, because, if you are going to encourage a factory to go right through to the final point of white sugar, it is going to cost much more in capital expenditure. [HON. MEMBERS: "No!"] That is our opinion. It is, in our view, uneconomic to set up a refining factory which will only operate at most two or three months in the year, when you can undertake the refining more efficiently and more effectively by means of a factory which is working throughout the whole 12 months of the year. In the former way you tend to casualise labour. We do not want to see more labour casualised. That is an objection to this proposal. You also duplicate small stores, you duplicate depots and you increase marketing expenses and distribution charges. These are the important points which arise as a result of and out of the proposal contained in this scale.

We want to see, as far as possible—and it is the only lines along which business can effectively be developed—efficiency in business, and that should be provided for. At the present time, the sugar refineries are only working 75 per cent, of their capacity, and there is a big margin which ought to be utilised in the public interest. I do not want to press the question of the scale, but I would remind the Minister that other proposals have been submitted to him, grouping proposals and other schemes. I hope that, to-night, we shall not rush through the proposals of a scale which, while they may be good, are, in my judgment, not the best proposals which can be submitted to the House.

The hon. Member for Greenock (Sir G. Collins), in opposing this proposal of the Government, said that the proposal would not so much benefit the industry of agriculture, but rather that it would put money into the pockets of the men connected with the factories. I would like to put before the Committee a few arguments from the practical point of view of the agricultural industry. We all know that an increased area under cultivation is the great object to be striven for at the present time. Will this proposal of the Government do anything to help that object? I think it will. By the development of the growing of sugar beet we shall get a new root crop. By having a root crop we get a rotation, by which alone you can get grain crops. Every practical agriculturist knows that it is only by having a rotation of crops that you can successfully grow wheat, or any other grain crop. If grain crops are grown consecutively, not only is the fertility of the land reduced, but it is destroyed. Therefore, in bringing into being a new root crop in the shape of sugar beet we are doing an incalculable benefit to the industry of agriculture, and we are providing means by which a larger area of land can be cultivated.

Sugar beet is what I would call she product of a leguminous plant. By that I mean that it is a plant which attracts nitrogen from the air and thereby nitrifies and fertilises the land. Therefore in bringing in this new root crop of sugar beet we are doing an immense amount of practical good by increasing the fertility of our soil. We all want to get an increased number of people living in our country districts. The Government are to be congratulated, at the beginning of their tenure of office, in taking a practical step not only to provide agriculture with means to increase the production of food from our land but to increase the number of people living in our country districts. We are entitled, therefore, to give praise to the Minister of Agriculture for bringing forward this proposal, and in fairness we ought to recognise that the late Minister of Agriculture and his Government are entitled to a share of the praise, because it was that Minister and that Government which began this policy. In taking this step at the present time, the Government is taking a step which is the best practical step in the interests of the revival of agriculture that we have seen for many a long year.

I want to say a few words in opposition to this proposal. A friend of mine on these benches has given as a reason why we should not oppose the proposal, that it was a proposal made in the last Parliament by the Labour Government. Members of this party while having a great sense of party loyalty do not surrender their rights of private judgment, wholly, and I am very sorry if some of my colleagues here have a greater sense of loyalty to their party than of loyalty to their principles. I do not propose to allow my loyalty to my party to carry me to betrayals of that sort. I am not concerned with the contending factions and interests which appear to be present in this Debate. It is a very interesting and a very edifying spectacle to us who represent the workers of this country to find sections of the capitalist interests here contending in the way they have been doing to-night. With the tweedledum capitalists and the tweedledee capitalist I have no concern. I am here to put the point of view of the consumer and taxpayer in regard to this question.

This proposed subsidy is a very objectionable departure in regard to our national finance. They have, I believe, in America, methods which they call logrolling. I believe there has been a great deal of propaganda, a great deal of canvassing and a great deal of lobbying in connection with this proposal. I regret that it seems to have succeeded. Yesterday we were reminded by the Chancellor of the Exchequer that this House was chaste because it had not been solicited. It appears to me that, so far as this proposal is concerned, solicitation has taken place and our chastity has not withstood the test. The only justification for a proposal of this sort would be that it would confer upon the nation as a whole some real and solid benefit either in the way of reduced cost of sugar or in our getting back some actual cash return for this subsidy. If we could give a subsidy to a national beet-sugar industry and get from that industry profits which might be made for the nation, then with all my heart I would support a proposal of this sort. But as I see it, all that we are going to do is this—we are going to take out of the pockets of the taxpayers, out of the pockets of the poor people in the East End of London and elsewhere, money in order to put profits into the pockets of manufacturers and farmers and landlords, and special interests of that sort. There is no kind of guarantee that as a result of our doing that the consumers in five or 10 years' time will get cheaper supplies of sugar. It is said that the reason for doing this is that we want to provide work for people who are now unemployed. My view is that that is a mere pretext, and that the real purpose behind this subsidy is to enable the landlord to increase to a very considerable extent the value of land which at present has not any very great value, to enable farmers to make profits which they cannot make under ordinary trade conditions, and to enable the people who have financed——

In addition to the landlords and farmers who are to benefit from this subsidy, there are the people who have put their capital into the homegrown sugar company and other companies in this industry. They hope to make very large profits out of this industry. I do not think that the State ought to pour this money into this industry in order to allow these people to make large profits. I have made a certain investigation into the finance of one of the companies interested, and I find that we have already sunk no less than £187,500 in capital.

In addition, we have paid something like £35,000 or more in the shape of guaranteed dividends to this concern, and I understand that we are to pay out many thousands more until 1930. If our view is that there ought not to be any general subsidising of industry, we have no reason for picking out a particular industry like this and putting State money into it. I am certain that there are in the country at least a dozen industries which would provide work, not merely for agricultural workers, but for workers in the great towns and cities-industries which, if they were offered terms of this kind, would be able in less than 10 years to carry on very effective competition with foreigners, though they are now unable to meet it. If you subsidised them in this way, by giving them over 50 per cent, of the finished price of the article they are producing—an hon. Member says it is over 100 per cent.—and do that for four years, and give 75 per cent, afterwards, I am certain that there are many industries which would carry en and do well. If you do it for one, why not for all?

This House hitherto has held the view that the subsidising of industry is a wrong principle to follow. We have said that if an industry is riot able, by its own skill and initiative and the ability of its organisers, to meet competition and to stand upon its own feet that industry ought to perish. I think we are justified in still taking that point of view, unless we are prepared to say, "Here is an industry which is not paying its own way, but it would pay its way if a large amount of State money were put into it. In view of that fact, we will take over that industry; we will put money into it, and run it for the benefit of the State." In the name of the poor people who will have to pay this money into the pockets of the landlords, the farmers, and the shareholders of these particular concerns, I strongly protest against this proposal.

The last speaker has asked whether there are any solid benefits offered to the country from the prospects of the sugar beet industry. I should have thought that, speaking from the Labour Benches, he would have attached great importance to the matter of employment. The House has been told by the Minister of Agriculture of the large number of factories which are being erected or are about to be erected in anticipation of this subsidy arrangement. Four at least, if not more, are being built now, and will be ready for next year's crop. Each of those factories means an expenditure here in England, on erection and equipment, of not less than £200,000, and in most cases probably it will exceed £300,000. There is a special quality about the labour employed in the work, because although a certain number, probably 150, are employed all the year, there is great additional employment available at a season of the year when in the rural districts employment is slack. The factories employ from 450 to 650 men each now. There is great additional employment on the farms engaged in the cultivation of beet. The hon. Member said that we who recommended this industry from the point of view of employment were not giving any adequate reason, and that we had another pretext. I frankly admit that, as far as I am concerned, that is true. My main pretext in supporting this industry—I have put a lot of energy into it during the last 14 or 15 years—has been the reduction of the price at which it is possible for the farmer to grow wheat in this country.

This is not only a sugar question; it is a wheat question. If you can introduce into our rotation a cleaning crop which pays its own way, you are removing a great handicap on the production of wheat and barley. The establishment in any arable area, of beet sugar as the cleaning crop of the rotation means a reduction of not less than 9s. per quarter in the figure at which it pays the farmer to grow wheat. It will mean a great increase in wheat production, a corresponding increase in the security of this country and, presumably, it will have a lowering effect upon the price of bread. One feature seems to have been overlooked in the opposition which we heard to-day to this proposal. The Committee has been urged to postpone it or reconsider it, or vary it according to the wishes of affected interests, but I do not think anyone has mentioned that this proposal, in its present form, is part of a bargain, the other side of which is now being carried out. The late Chancellor of the Exchequer, on the basis of this identical subsidy proposal, was able to arrange with two groups of people that six additional factories should be erected in this country within two years. At least four of these have been commenced. The factories are going up, the machinery is being manufactured—its delivery will commence next month—and you cannot drop this proposal without stopping these schemes and all they mean.

The factories which are being erected are all intended for the continuous process. The position of the refiners amounts to this, "We have established a position of monopoly and we want to keep it." They can, as they know perfectly well, get every penny of advantage from this subsidy. If they buy their raw sugar in England, they can encourage production in England and get the full amount of the subsidy. They are not content with that. They do not want to have anyone else producing white sugar. The hon. Member opposite who spoke, as I understood, from the point of view of the Co-operative Wholesale Society or some such body—[HON. MEMBERS: "For the consumers!"]—gave us a delightful exhibition of jugglery with figures. He took the amount of the proposed Excise Duty, added to it the amount of the duty on foreign sugar, and he compared that with a figure at which he arrived by deducting that same amount of duty from the market price of imported granulated sugar. He has taken this figure not once but three times. Another argument with which he tried to impress the Committee was that, because homegrown sugar in a particular year had to pay no Excise Duty, while the corresponding amount of imported sugar paid duty, therefore the manufacturers of the home-grown article got double that amount of protection. The hon. Member is wrong, and I advise him to study a little elementary arithmetic before he again attempts to impose an argument of that kind even upon a raw House of Commons.

The argument has also been used that the present proposal to give a subsidy to the different grades of sugar, including finished white sugar, would retard the erection of factories. All I can say is that those were the only terms upon which the two groups who alone have experience of sugar cultivation in this country were willing to erect factories at all. They would not do so for anything but the continuous process. As to the suggestion that the manufacture by continuous process in one building of white sugar increases handling and is uneconomic, I am at a loss to understand it. Surely, to produce by one set of power, in one continuous process and in one building, a finished article, must necessarily be more economical than the production of the same article in two different factories with two sets of power, two sets of labour and all the necessary handling in between. This is particularly so in view of the fact that some hon. Gentlemen have stated that it requires as much labour to produce raw sugar as to produce the finished refined article. That is very nearly, though not quite, true, and it only proves how much more economical it is to use the continuous process and produce an article ready for the market.

The hon. Member for Greenock (Sir G. Collins) asked for a postponement, and said there was no hurry. There is great hurry. For weeks farmers have been waiting to sign their contracts for the cultivation of beet for next year's campaign, waiting to see whether the House of Commons was going to implement the arrangements made and the pledges given by the late Government. Farmers are making their arrangements at this time of year—most have made them already—for the crops of next season. They cannot postpone those arrangements, because the ground has to be prepared. At least 5,000 acres per factory has to be contracted for at once for the four new factories to be erected for next year's crop. So far from there being no hurry, the matter has already been postponed to the very last moment if this employment is to be given next year. The hon. Member for Silvertown (Mr. J. Jones) asks for an assurance that the beet produced at home, which would receive the benefit of this subsidy, should be produced under the same conditions as to hours of labour and scale of wages as raw sugar which was refined in the factory at Silver-town. Does he really mean that? Does he know where it all comes from? A great deal of it is produced by coloured labour, and the rest of it comes from countries which are not so advanced as ours, and, inadequate as are our own agricultural wages, grossly inadequate, and bad as are the conditions of rural labour in many instances, they are infinitely better here than they are in the countries in which the bulk, if not the whole, of the raw beet sugar that comes to Tate's and Lyle's factories for refinement is produced. I hope the Committee will neither postpone, nor delay, nor alter this arrangement. I am quite convinced that it is the only arrangement upon which this desired increase in the industry can be carried out, and I hope my hon. Friend will not press his Amendment to a division.

I am certain that in whatever quarter of the House Members sit, they are always anxious, in Committee of Ways and Means, to safeguard the taxpayers' money. I have noted during this Debate that the hon. Member for Ilford (Sir F. Wise), who always gives us good advice in regard to finance, evinced some uneasiness over this matter, and I expect he knew something of the history of this thing, as I find it in the OFFICIAL REPORT of the 22nd February, 1922. I am wondering whether he was a member of the Committee which reported, and whose Report is referred to on that occasion.

I was not on the Committee, but I happened to visit Kelham, and I saw the bad management from the financial aspect, with the Government assisting as a guarantor of interest, and advancing money in other ways.

I will quote:

"The present financial position of the sugar beet factory at Kelham gives cause for anxiety. Owing to the high cost of erecting the factory, the company had exhausted their capital by the end of last year, and the directors applied to the Government for permission to borrow a further amount up to £200,000 in priority to the second mortgage held by the Government, and for a remission of the Excise Duty on home-manufactured sugar. The application of the company was referred to a special Committee appointed by the Ministry in conjunction with the Treasury, under the chairmanship of Sir William McLintock. The Committee recommended that permission should not be given to the company to raise further money to rank before the existing second mortgage, and in regard to the Excise Duty they pointed out that its remission would amount to a subsidy on beet growing at the rate of £24 an acre."—[OFFICIAL REPORT, 22nd February, 1922; cols. 1920–1, Vol. 150.]

On that question of subsidies, I think it is well for the Committee to remember that last year there was an appeal to the country by the present Prime Minister, and that, included in his programme of general tariffs, was a programme of a subsidy for agriculture to the extent of £l per acre, and the £l per acre was summarily rejected by the electors. In regard to the subsidy which is proposed in the Financial Resolution now before the Committee, it might not be quite £24 an acre, but it certainly will be over £20 an acre, which is being proposed as a subsidy to the beet sugar growing interests in this country. Nor have we any guarantee as to where this is going to end. I am reminded, and perhaps the Financial Secretary to the Treasury will remind his chief, the Chancellor of the Exchequer, of something which he once said in a Debate on this very sugar question as far back as July, 1903. What he said was:

"We are ourselves learning the temptations to which the minds of quite clever people are exposed by the arguments of fair trade and protection when they are put forward by very skilful politicians"—

and he showed that skill to us last night—

"but we are not in the position that foreign nations were in when they embarked on the bounty system"—

and what is this but a bounty?—

"It is very easy to embark on that policy, but it is very hard to stop and still harder to declare the consequences which that policy entails."

I want to ask the Minister who is going to reply what guarantee he has, in coming and asking the House for authority to spend this money, that this is the beginning and the end of the demand which is going to be made on the taxpayers in this matter. We had a perfectly clear indication from the hon. and gallant Member for Sudbury (Colonel Burton) to-night that the interests are not even satisfied with the proposals which are being made in this present Financial Resolution, and I venture to prophesy that at the end of the first period, at the end of three years, when the question of going down to the next scale of subsidy has to be faced, this House will again be asked to stabilise the present rate of subsidy which is proposed, and which equals over £20 an acre.

How does the hon. Member make the subsidy over £20 an acre? The average yield of beet per acre is about eight tons, and the price per ton is 44s. delivered at the factory, which will not yield more than 40s. before delivery. That is only £16 per acre, so how does the hon. Member arrive at his subsidy of £20 per acre?

I do not know whether the hon. Member was in when I first rose, but, if so, he would have heard me read an extract from the OFFICIAL REPORT of this House, from the Report of a Committee appointed by the Treasury, to the effect that a subsidy at the rate of 25s. 8d. a cwt. was equal to £24 an acre, and on that basis I say that the subsidy proposed here is certainly equal to over £20 an acre. What I want to ask my right hon. Friend is: What guarantee is there that he will not be coming again, either for stabilisation at the high rate of subsidy, or for an extension of the period? The whole supply of the world's sugar has increased this year, this being the first post-War year during which there has been a considerable surplus of beet sugar for export from the Continent, and here we have this beet-sugar industry coming to us now for a subsidy. They have had this subsidy during the very years when there was no competition whatever from the beet-sugar interests on the Continent, and all the time they were protected by War conditions and post-War restrictions from any importation of beet sugar from the Con- tinent they failed to make it pay at all, even with the aid of a high subsidy. What guarantee is there that the Minister can give us that in the 10 years' period laid down in this Resolution they are going to be able to make this business pay, when the whole Continental beet sugar industry will be increasing its output and sending its sugar here? Will they then ask us for a still higher tariff against the sugar coming here to give a still further protection to a young and infantile industry, as I think it has been called?

There is another point, and that is that the Minister referred, I think, rather tentatively—he did not seem very definite about it when he spoke—with regard to the guarantee to the farmer and the price which was to be paid to him for his sugar beet. He used the words, "I think it is 44s." At any rate, I should like to know how long the guarantee of so much per acre is going to apply, and what guarantee there is to the farmer that he is going to get a stable price for his product, say, after the period of the subsidy has come to an end, if it ever does come to an end. There is just one other point to which I will refer—there are many other things I wanted to say—especially for the benefit of some of my hon. Friends behind who have spoken about employment. My right hon. Friend the Member for North Norfolk (Mr. Buxton) referred to the conversion of the right hon. Gentleman who sat for Tiverton in the last Parliament, Mr. Acland. I am very sorry that that right hon. Gentleman is not here to give us chapter and verse for his conversion, because I must confess I am very much impressed by the argument he used when speaking in the House on the 20th June, 1922. He said:

9.0. P.M.

It has been said by my right hon. Friend beside me that we have got away from the old principle of subsidy by a tax upon the consumer, and, therefore, you will be free at any time to reduce the tax on sugar. I wonder if that is true. It is true, an excise duty has to be put on in the other direction, but when you get, as it may be, nine or 10 factories working, instead of two, it will certainly be creating a sort of vested interest for the retention of the tax on the people's sugar. Some have said there may be even 40 of 50 of these factories set up, and then it will be found that, instead of asking for a quarter of a million a year from the Exchequer, it will be something more like three, four or five millions a year as a subsidy. I think these facts should be clearly understood by the Committee before consenting to a Money Resolution of this far-reaching character.

I am anxious not to appear discourteous, but I know there are various other questions which hon. Members wish to raise to-night, and, therefore, I will not enter into a detailed reply. I only wish to make one observation in reply to the speech

of the hon. Gentleman opposite, and it will, perhaps, be held to cover the greater part of the speeches made from that bench, but it covers his more particularly. I could not help reflecting, as I listened to his powerful speech and his arguments, well marshalled and well arrayed, how it was that such a line of argument came from a Gentleman who bad been a member of the Government who produced this identical scheme which to-night I am recommending. The hon. Gentleman must have felt very uncomfortable when the Chancellor of the Exchequer in the late Government stood at this Box, and gave the answer on which I base the scheme I am recommending to the Committee. If that be so, I suggest to him, and to other hon. Members behind him, that if they feel some lingering doubt, they should apply to the late Chancellor of the Exchequer, or even to the late Minister of Health, whose consent, perhaps, to this scheme would in a measure give assurance to the hon. Gentleman who spoke last, that this is not merely a device of the capitalist class to increase the price of sugar to poor people, and, out of the increased price of sugar, to bring greater dividends to the share, holders in these factories. Therefore, while I pay great attention to all the arguments that have been urged, while I have heard every speech, I hope the Committee will now be prepared to give us our Resolution. There will, of course, be further opportunity on the Report stage, and on the Supplementary Estimate, and, that being so, I hope we may now have our Resolution, and take the first step in the policy which, I am quite satisfied, in spite of what has been said, will be of advantage to the agricultural industry.

I beg leave to withdraw my Amendment.

Amendment, by leave, withdrawn.

Main Question put.

The Committee divided: Ayes, 223.

Division No. 7.]

AYES.

[9.4 p.m.

Acland-Troyte, Lieut.-Colonel

Applin, Colonel R. V. K.

Barnett, Major Richard W.

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

Apsley, Lord

Barnston, Major Sir Harry

Ainsworth, Major Charles

Baird, Rt. Hon. Sir John Lawrence

Beamish, Captain T. P. H.

Albery, Irving James

Baker, Walter

Bennett, A. J.

Alexander, E. E. (Leyton)

Balfour, George (Hampstead)

Bird, E. R. (Yorks, W. R., Skipton)

Allen, J. Sandeman (L'pool, W. Derby)

Balniel, Lord

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

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

Barclay-Harvey, C. M.

Blades, Sir George Rowland.

Ammon, Charles George

Barker, G. (Monmouth, Abertillery)

Boothby, R. J. G.

Bourne, Captain Robert Croft

Hawke, John Anthony

Reid, D. D. (County Down)

Bowerman, Rt. Hon. Charles W.

Heneage, Lieut.-Col. Arthur P.

Remer, J. R.

Brittain, Sir Harry

Henderson, Capt. R. R. (Oxf'd, Henley)

Rhys, Hon. C. A. U.

Brooke, Brigadier-General C. R. I.

Henderson, Lieut.-Col. V. L. (Bootle)

Rice, Sir Frederick

Brown-Lindsay, Major H.

Hennessy, Major J. R. G.

Roberts, E. H. G. (Flint)

Brown, Maj. D. C. (N'th'l'd., Hexham)

Henniker-Hughan, Vice-Adm. Sir A.

Roberts, Samuel (Hereford, Hereford)

Brown, Brig.-Gen. H. C. (Berks, Newb'y)

Herbert, Dennis (Hertford, Watford)

Robinson, W. C. (Yorks, W. R., Elland)

Buchanan, G.

Hilton, Cecil

Ropner, Major L.

Butler, Sir Geoffrey

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

Rye, F. G.

Bullock, Captain M.

Holbrook, Sir Arthur Richard

Samuel, A. M. (Surrey, Farnham)

Burton, Colonel H. W.

Holt, Captain H. P.

Sanderson, Sir Frank

Buxton, Rt. Hon. Noel

Homan, C. W. J.

Sandon, Lord

Caine, Gordon Hall

Hope, Sir Harry (Forfar)

Savery, S. S.

Campbell, E. T.

Horlick, Lieut.-Colonel J. N.

Sexton, James

Chadwick, Sir Robert Burton

Hudson, R. S. (Cumb'l'nd, Whiteh'n)

Shaw, Rt. Hon. Thomas (Preston)

Charleton, H. C

Hume, Sir G. H.

Shaw, Capt. W. W. (Wilts, Westb'y)

Charteris, Brigadier-General J.

Huntingfield, Lord

Shepperson, E. W.

Christie, J. A.

Hurd, Percy A.

Shiels, Dr. Drummond

Churchman, Sir Arthur C.

Iliffe, Sir Edward M.

Short, Alfred (Wednesbury)

Cluse, W. S.

Jacob, A. E.

Skelton, A. N.

Cochrane, Commander Hon. A. D.

John, William (Rhondda, West)

Slaney, Major P. Kenyon

Conway. Sir W. Martin

Jones, Morgan (Caerphilly)

Slesser, Sir Henry H.

Cooper, A. Duff

Kennedy, T.

Smith, R. W. (Aberd'n& Kinc'dine,C.)

Cope, Major William

Lamb, J. Q.

Smith-Carington, Neville W.

Couper, J. B.

Lawson, John James

Smithers, Waldron

Courthope, Lieut.-Col. George L.

Lister, Cunliffe-, Rt. Hon. Sir Philip

Stanley, Col. Hon. G. F. (Will'sden, E.)

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

Little, Dr. E. Graham

Stanley, Lord

Crook, C. W.

Loder, J. de V.

Storry Deans, R.

Crookshank, Col. C. de W. (Berwick)

Lowth, T.

Stott, Lieut.-Colonel W. H.

Crookshank, Cpt. H. (Lindsey, Gainsbro)

Lucas-Tooth, Sir Hugh Vere

Stuart, Hon. J. (Moray and Nairn)

Cunliffe, Joseph Herbert

Luce, Major-Gen. Sir Richard Harman

Sugden, Sir Wilfrid

Curzon, Captain Viscount

Lynn, Sir R. J.

Tasker, Major R. Inigo

Davies, A. V. (Lancaster, Royton)

MacAndrew, Charles Glen

Taylor, R. A.

Davies, Ellis (Denbigh, Denbigh)

Macdonald, Capt. P. D. (I. of W.)

Thomson, F. C. (Aberdeen, South)

Davies, Rhys John (Westhoughton)

McDonnell, Colonel Hon. Angus

Thomson, Sir W. Mitchell-(Croydon,S.)

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

MacIntyre, Ian

Tinne, J. A.

Dean, Arthur Wellesley

Mackinder, W.

Tinker, John Joseph

Drewe C.

McLean, Major A.

Viant, S. P.

Duncan, C.

Macmillan, Captain H.

Waddington, R.

Edwards, C. (Monmouth, Bedwellty)

Macnaghten, Hon. Sir Malcolm

Ward, Lt.-Col. A.L. (Kingston-on-Hull)

Edwards, John H. (Accrington)

Manningham-Buller, Sir Mervyn

Warne, G. H.

Everard, W. Lindsay

March, S.

Warner, Brigadier-General W. W.

Fairfax, Captain J G.

Margesson, Captain D.

Warrender, Sir Victor

Fleming, D. P.

Marriott, Sir J. A. R.

Waterhouse, Captain Charles

Ford, P. J.

Maxton, James

Watts, Dr. T.

Foxcroft, Captain C. T.

Merriman, F. B.

Watson, Sir F. (Pudsey and Otley)

Fraser, Captain Ian

Mitchell, W. F. (Saffron Walden)

Webb, Rt. Hon. Sidney

Fremantle, Lieut.-Colonel Francis E.

Mitchell, Sir W. Lane (Streatham)

Wells, S. R.

Ganzoni, Sir John

Montague, Frederick

Wignall, James

Gee, Captain R.

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

Williams, A. M. (Cornwall, Northern)

Gillett, George M.

Murchison, C. K.

Williams, Com. C. (Devon, Torquay)

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

Nall, Lieut.-Colonel Sir Joseph

Williams, Herbert G. (Reading)

Glyn, Major R. G. C.

Nelson, Sir Frank

Wilson, R. J. (Jarrow)

Goff, Sir Park

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

Windsor, Walter

Greene, W. P. Crawford

Neville, R. J.

Windsor-Clive, Lieut.-Colonel George

Greenwood, A. (Nelson and Colne)

Nuttall, Ellis

Winterton, Rt. Hon. Earl

Grenfell, O. R. (Glamorgan)

Oakley, T.

Womersley, W. J.

Grotrian, H. Brent

O'Connor, T. J. (Bedford, Luton)

Wood, B. C. (Somerset, Bridgwater)

Guest, Dr. L. Haden (Southwark, N.)

O'Neill, Major Rt. Hon. Hugh

Wood, Rt. Hon. E. (York, W. R., Ripon)

Guinness, Rt. Hon. Walter E.

Percy, Lord Eustace (Hastings)

Wood, E. (Chest'r, Stalyb'ge & Hyde)

Hacking, Captain Douglas H.

Pethick-Lawrence, F. W.

Wood, Sir H. K. (Woolwich, West)

Hall, G. H. (Merthyr Tydvil)

Peto, G. (Somerset, Frome)

Yerburgh, Major Robert D. T.

Hall, Capt. W. D'A. (Brecon & Rad.)

Philipson, Mabel

Young, Robert (Lancaster, Newton)

Hammersley, S. S.

Potts, John S.

Harland, A.

Preston, William

TELLERS FOR THE AYES.—

Harrison, G. J. C.

Price, Major C. W. M.

Commander B. M. Eyres Monsell and Colonel Gibbs.

Harvey, G. (Lambeth, Kennington)

Radford, E. A.

Haslam, Henry C.

Ramsden, E.

NOES.

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

Hayes, John Henry

Scrymgeour, E.

Barr, J.

Kelly, W. T.

Sutton, J. E.

Batey, Joseph

Kenworthy, Lt.-Com. Hon. Joseph M.

Thurtle, E.

Compton, Joseph

Lansbury, George

Varley, Frank B.

Connolly, M.

Livingstone, A. M.

Whiteley, W.

Groves, T.

Morris, R. H.

Wise, Sir Fredric

Hamilton, Sir R. (Orkney & Shetland)

Palin, John Henry

Harney, E. A.

Sakiatvala, Shapurji

TELLERS FOR THE NOES.—

Mr. A. Barnes and Mr. Scurr.

Resolution to be reported To-morrow.

Ways and Means

Considered in Committee.

[Mr. JAMES HOPE in the Chair.]

British Sugar Subsidy

Resolved,

"That the exemption from duties of excise given by Section six of the Finance Act, 1922, in respect of sugar and molasses manufactured from beet grown in Great Britain or Northern Ireland shall be deemed to have ceased on the thirtieth day of September, nineteen hundred and twenty-four, and that the Excise Duty now chargeable on sugar and molasses manufactured otherwise than from such beet as aforesaid shall be, and shall be deemed as from the date aforesaid to have been, chargeable in respect of sugar and molasses manufactured in Great Britain or Northern Ireland from such beet."—[ Mr. Guinness." ]

War Charges (Validity)

Motion made, and Question proposed,

"That it is expedient to give legal validity to the imposition and levying of certain charges which during the late War certain Government Departments, purporting to act in the execution of duties imposed or in pursuance of powers conferred by the Defence of the Realm Regulations or otherwise, imposed by way of payments required to he made either on or in connection with the grant of licences or permits issued or purporting to be issued in pursuance of the said powers or in connection with the control of supplies or of the prices of certain commodities other than milk."

This Resolution which I am moving is the necessary precursor of a Bill to validate certain war charges. This Bill has a long history, but if the history is long the facts are simple, and both are stated at length in the White Paper which is in the Vote Office. Both are familiar to all who were Members of the last House of Commons. Unlike what happens with most questions that recur in successive Parliaments, no fewer than four successive Governments have been unanimous in the course to be adopted on this question, and that course undoubtedly would have been adopted had it not been for the fact that General Election succeeded General Election with a rapidity which involved a massacre of many most worthy innocents. In moving this Resolution, and subsequently the Bill which we propose to found upon it, I am inviting the House to accept the decision of successive Governments and of succes- sive Houses of Commons. To those who were Members of previous Parliaments it would perhaps be enough to say that, and to leave it there, but for those who were not I would like to summarise the facts as briefly as I can.

During and immediately after the War a large number of prohibitions were imposed. All those prohibitions were perfectly legal; there was no question about that, and I think no question has ever been raised that not only were they legal but that they were in the public interest. I will give one or two examples. During the War flour was subsidised. We bought wheat and we converted it into flour, and in order to keep the cost of living down the flour was sold cheap at a subsidised price; but people were prohibited from using subsidised flour except for making bread. Beer was prohibited, except in strictly limited quantities, and, I may add, strictly limited qualities, and brewers were permitted to brew only a certain amount of beer. At the time when the shipping crisis was at its height people were prohibited from selling ships abroad: and there were a number of other prohibitions, which are set out in the White Paper. All those prohibitions were perfectly legal, and when exemptions were desired from those prohibitions the executive Government was prepared, as was right, and was generally accepted at the time, to grant exemption where it was in the public interest to do so, and also paying due regard to the proper economy of public money. Where licences were granted a license fee was charged. It was a strictly business transaction. Nobody was compelled to apply for a licence He applied for a licence to do something which it was good business for him to do, and out of which he was going to make a profit, and as a business transaction he was required to pay a fee for his licence.

Lord Buckmaster, in speaking on one case in the House of Lords, said whatever might be the law, there could be no question about the morality of the transaction. In the case of flour, for instance, the Government was spending an enormous amount of money in order to subsidise the loaf and to keep the price down to 9d., or whatever was the price at which it was kept. The Government was perfectly right, and when people wished to use flour for the making of cakes and pastry, the Government said, equally properly, "We cannot take millions of the taxpayers' money for the subsidy which we give to flour and allow people to make luxury cakes out of it. Therefore, where people require a licence in order to make cakes, or fancy bread or pastry, we shall require them to pay a licence fee." This fee, as near as could be calculated, was the difference between the world price of the flour used in making the cakes and the artificially low, subsidised price at which flour was sold to the general consumer.

It was the same in the case of brewing. It was discovered that some of those engaged in the most arduous forms of toil, such as agriculture and the making of munitions, required a larger quantity of beer than the less fortunate members of the community, but it was impossible to allow every brewer in the country to cater for those requirements, and it was necessary that the additional beer should be brewed by the brewers who were nearest on the spot to the munition makers or agricultural workers. If, however, they had been allowed, without further ado, to brew an increased quantity, they would have made a good deal more money than their fellow brewers in other parts of the country. Therefore, in complete agreement with the brewing industry, and, if I remember rightly, at the suggestion of the brewing industry itself, it was suggested that this extra beer should be brewed by the brewers on the spot, and that for that advantage they should pay the agreed licence fee. In the same way, people were prohibited from selling ships abroad. I might remind the House that the whole of the arrangements of the Shipping Ministry at that time were under the control of Lord Maclay, himself probably one of the greatest, as well as one of the fairest, shipowners this country has ever known, a man who did amazingly good work during the War. There was also, further, a committee of shipowners. Where a shipowner applied for a licence to sell a ship, and that licence was given, he was required to pay a licence fee, a fee which, I may observe, represented only a small proportion of the profit which he obtained on the transaction. In every case the licensee applied for a licence to do a thing which it was good business for him to do, and in every case he entered into a contract, or what would be considered a contract by the ordinary plain man, to pay a fee for a licence to do the prohibited thing. The whole of this procedure was well known to all concerned and to the House of Commons. Ultimately it was discovered, after an action had been brought against the Wilts Dairies, Limited, and taken to the House of Lords, that although it was perfectly legal for the Government to make the prohibition, the charging of the fee was technically illegal. The result was that on that decision all those who had paid those licence fees, and paid them for transactions which it had been to their interest to transact, were entitled to recover from the Government. That would have meant that the Government would have had to pay out to people who, as Lord Buck-master said, had entered into a transaction which involved the strongest possible moral obligation upon them. The Government would have had to pay out to them no less than £18,000,000 of money, which would have had to be raised by taxation. When the judgment was given, it had of course to be considered by the Government of the day and that was the Government of my right hon. Friend the Member for Carnarvon Boroughs (Mr. Lloyd George). The Government of that day at once announced in the House of Commons that in all the circumstances only one course was open to them and that they would bring in legislation at an early date to validate all those licence charges, with the sole exception of that which had been the subject of a decision in the House of Lords. A warning was thereby given to those who might bring actions in the future that they would bring those actions at their peril and that the Government proposed to validate these transactions. The very great majority of the possible claimants under these different licences, whether in respect of flour, or brewing, or steel, or hides, or ships, or whatever the goods might be, accepted that assurance and did not bring any claim.

As I have said, the force of electoral circumstances supervened. There came the Election of 1922 and Mr. Bonar Law's Government came into office and decided to proceed with the Measure. Bills take some time in this House, and another Election supervened, and a party of different complexion found themselves on these benches. But so strong was the equity of the case, that they at once came to the same conclusion and introduced their Bill. That Bill was ultimately passed through this House after great discussion and after it had been moulded into form. I myself was a critic of different features in the Bill as introduced by the right hon. Gentleman who was then occupying the office I now hold—criticisms as to the question of costs and as to the judgment which had been given in the House of Lords. The Bill was moulded into a form which ultimately commanded the unanimous assent of the House and passed this House without a single objector.

On going into Committee, the Bill was moulded into shape. The new Bill which I shall introduce under this Resolution will follow the Bill which was ultimately adopted in the form in which it passed its Third Reading in this House without a Division. That is absolutely correct, for I myself took a considerable part in the discussion, as did my hon. Friend. We insisted on certain provisions being inserted which were fair and equitable to any persons who were interested in the Measure. The Measure which I shall propose to bring in after the House has given me this Resolution will give effect to all the provisions which the House in the last Parliament inserted in Committee in the Bill. It will take the form which the Bill took in this House after it left it on Third Reading without a Division—but with one exception, which still further carries out the sense which I and other Members advocated, and that is that there will be no general words in the Schedule, but the scope of the Bill will be limited precisely and definitively to the charges which will be set out in the Schedule to it.

I am aware that in another place the Bill was defeated on Second Reading by a slender majority in a not very large-House, but those who followed the Debate in that place will observe that there was, and I speak with all respect, some mis- understanding as to both the scope of the Bill and certainly as to the effect of the Amendment which was proposed, because the Resolution that was proposed by the Noble Lord who moved its rejection was not directed against the Bill as such, but was directed to a particular part of the Bill, and was founded on this. The Noble Lord was anxious that the company which had had the benefit of the House of Lords' judgment should not have the benefits of this Bill unless the Government were prepared concurrently to pass legislation forcing that company to distribute the advantages it received among the farmers of the West Country—a course which, I agree with the late Government, would have been impossible to accomplish. But the net result of the Noble Lord's Motion really was not to benefit the farmer whom he wished to benefit, but' merely that the company whom he wished should pass on the benefit got all the benefit for themselves.

May I interrupt? As a matter of fact, the Motion to which my right hon. Friend refers was not put, but was withdrawn. The House of Lords adopted another Motion and the Amendment of Lord Kylsant was not put.

The Motion for the rejection was put after the Noble Lord to whom he referred had decided that he did not wish to put his Motion.

I think the hon. Gentleman will agree that there was some misapprehension both as to the scope and the intention of the Bill. I think that the scope of this Measure is plain. It is set forth precisely in the White Paper, and what I am asking the House to do now is to take the first necessary preliminary steps in order that we may pass the Measure which the House in the last Parliament agreed to unanimously on its Third Reading. I venture to submit to the Committee that in the circumstances no other course would be proper.

How was it that the right hon. Gentleman, among others, opposed this Measure on the Second Reading in the last Parliament?

Because I was not satisfied with the provisions and I thought it was not fair to claimants in the matter of costs and that the judgment of the House of Lords ought to be maintained. Those two points were met in the Committee stage and the Bill I propose to introduce is exactly in the form in which this House passed it.

Will my right hon. Friend allow me. You are a much older Parliamentarian than I am, and you know that you divided on the Second Reading.

Excuse me for my indiscretion. I only want to put a question. You divided on the Second Reading. If you only wanted an Amendment of detail, why did you yet divide on Second Reading, which might have defeated the Bill and therefore have stopped any chance of it being amended?

Will the hon. Member, as Mr. Speaker has pointed out before, address the Chair and not an individual opponent.

No. I think that the hon. Member will agree that we should clearly not bring in the Bill now, if our object had been to defeat the Measure then. I am quite content to leave myself and my conduct in this matter in the hands of my right hon. Friend who was then President of the Board of Trade. I made my position quite clear, and said I thought the Bill ought to be put in a particular form which was fair in equity to all those claimants other than th6se who had been the subject of the judgment in the House of Lords before notice of legislation was introduced at all. That was the position which the whole House adopted after Debate, and the position by which I stand to-day.

There is only one other point. There has been some misunderstanding as to the amount of money actually involved in this Bill, and I should like to clear that up. What the ultimate financial liabilities of the Government are, would, of course, depend upon the final judgments ultimately given in the House of Lords on the different cases which are now pending, and some of them are in different stages. At the present time there is no judgment actually against the Crown. But I say frankly that the ultimate liability of the Government, apart from legislation, would depend on the ultimate decision of the House of Lords in these different cases. If the House of Lords, as the supreme Court of Appeal, decided that none of these claims were affected by the Act of Indemnity the Government would be liable to pay the whole sum of £18,000,000 to the claimants. If the House of Lords ultimately decided that the Statute of Indemnity applied, but in a limited way, the actual legal liability of the Government would vary between £70,000 and £138,000, according as one or other of two conflicting legal contentions was finally maintained.

But I want to put this point. Whatever might be the legal position actually on the law, the moral position is enormously strong, because it would be extraordinarily inequitable to treat differently and less generously those litigants who had accepted an assurance by successive Governments that legislation would be introduced, and in consequence refrained from bringing their action and lodging their claims and were barred because they had accepted the advice of the Government, and then found that they were barred by a technicality because they had taken the advice of the Government. I dislike retrospective legislation as much as anyone, but it would be extraordinarily unfair to treat differently those who had persisted in the face of an announcement that legislation would be passed and those who had acted at the request and with the assurance of the Government. For these reasons I ask the House to accept this proposal.

For the reasons which were given to the Committee by my right hon. Friend the President of the Board of Trade, I feel it necessary to detain hon. Members for a few minutes on this question. My right hon. Friend has proposed his Motion not only with his characteristic lucidity but also with his characteristic plausibility, and that makes it all the more incumbent on me to ask the Committee to consider what we are as a matter of fact asked to do. May I make it clear at the outset that I am not in the least concerned as to any licensee or any claimant in this matter. I have no interest whatever in it, and I do not know even their names. I am not in the least concerned with that side of the question. I am, however, concerned with a very much more important consideration, because my contention is that this is a proposal, I will not say which the Committee ought not to accept, but which I am quite certain they ought not to accept without very narrow and precise scrutiny.

We have been told that this Bill passed its Third Reading without a Division in the last Session. It is true that it did pass, but it was after midnight on the 4th of June, a day on which if not an hour at which many hon. Members had excellent reasons for absenting themselves. I would like to point out that on the Second Reading we did divide, and it was a reasonably good division. I admit that this is a Resolution which is a necessary preliminary to the Bill, and it is one which every Government since the War has felt it necessary to introduce but which none of them has so far succeeded in putting on the Statute Book. What does the Resolution affirm? It affirms that it is expedient to give legal validity to various things. The first point that I want to make with all respect is this, and I hope if any Member of the Government does us the honour, to reply he will be good enough to address himself to this point.

The first point is one of procedure. Why is this financial Resolution proposed to-night in the closing hours of the pre-Christmas portion of the Session? The Government cannot proceed with this Bill for a couple of months, and why do they want the Resolution to-night? It seems to me that it is a most inconvenient, not to say most irregular, proceeding. My submission is that the Resolution in Committee of Ways and Means ought to be in reasonably close chronological relation to the Bill which it is intended to found upon it. I hope we shall have some explanation of the procedure which in this matter the Government have seen fit to adopt. I do not want to dwell unnecessarily on that point, but I want to deal with the substance of the Resolution before the House, and I ask the Committee whether it is in fact expedient to give legal validity to these irregular and illegal proceedings.

Every spokesman of every Government, as far as I know, has admitted in introducing this Bill that the validating of invalid charges of this kind must be a matter of great regret. What are the facts? Very briefly they are these. Very large powers, in fact, enormous powers, were necessarily during the War given to the Executive Government under the Defence of the Realm Act and besides that, in order to cover any deficiencies and any defects and to condone any illegality which might be committed, there was passed at the end of the War an Act which my right hon. Friend the President of the Board of Trade passed over very lightly called the Indemnity Act, which, I think, was passed in the year 1920. Under the Defence of the Realm Regulations the Executive imposed certain charges upon the subjects of His Majesty, charges which, despite those two Acts, the Defence of the Realm Act and the Indemnity Act, have now been declared in certain cases to be illegal.

What are the questions which are actually raised before this Committee by the Resolution which my right hon. Friend has proposed? It is not, I submit, a question whether it was or was not morally right that these charges should be imposed on the subjects of His Majesty. My right hon. Friend has made great play in regard to the morality of these proceedings. I submit that the considerations which be has put before the Committee in chat regard are really wholly irrelevant considerations. It is not a question whether it was or was not morally right that charges should be imposed, but whether those charges were or were not within the legal competence of the Executive. The Judiciary, the highest Court of the land, has decided, in a very important case, that these charges were not legal, and I will venture to trouble the Committee with a very short quotation from what was stated by Lord Justice Atkin in giving judgment. Lord Justice Atkin said: tapis . At any rate, my submission to the Committee at this moment is that, however dangerous, however iniquitous, if you like, is the interference of the Executive with processes of law and with the action of the judiciary, hardly less dangerous is the interference of the Legislature.

To come back for a moment, however, to the financial question, I have assumed that it is a question of £18,000,000 of public money, but is it? Is it a question of £18,000,000? The Indemnity Act, if I remember rightly—my right hon. Friend will correct me if I am wrong-provided that all claims must be lodged before a certain date, the 31st August, 1922; that is to say, within 12 months of the legal ending of the War. It is known to every Member of this Committee that the Courts have already decided, by a very important judgment, a question, which I rather gathered from my right hon. Friend's speech, was still left in doubt. The Courts have already decided that a person who did not bring his claim before the 31st August, 1922, is now Statute-barred, and I want to know, from whoever speaks from the Government Bench to-night, how that decision will, as a matter of fact, affect the financial aspect of the Resolution which has been proposed to the House. I am not suggesting that it will affect the principle which is under discussion, but it certainly will affect the expediency of the Resolution. I think my right hon. Friend the late President of the Board of Trade admitted that the amount involved would not exceed, at the outside, £1,000,000. I think that was his admission, and I think he was very generous in that limit. My own impression is, that it cannot possibly exceed £250,000, and, therefore, I submit that to put this figure of £18,000,000 in the Memorandum without further explanation, is, really, I do not like to say misleading, but is not dealing quite frankly with the Committee.

I am not, however, arguing this matter as primarily a matter of financial expediency. It is primarily a question of constitutional principle. All retrospective legislation—and this is a proposition which will not be denied—requires the most precise justification, and more particularly is that true when the object of the retrospective legislation is to validate the illegalities of the Executive Government. Most of all is it objectionable when the Executive has been actually defeated on a question brought before a court of law. I think that no Member of the House, and, indeed, no one who has at all closely observed the course of public affairs, can have failed to observe an increasing tendency on the part of officials to commit acts of doubtful legality, relying on the assurance that, if the Courts decide against them, they have only to come to Parliament to receive an indemnity. That is an exceedingly dangerous tendency, and it is one which I hope the House of Commons will do everything in its power—and it is all-powerful in the matter—to discourage. These officials, in respect of the matters which are under consideration to-night, are the Executive Government, and, in fact, levied taxes, or what were to all intents and purposes taxes, without the authority and without the consent of Parliament. I hope the Committee will not be so forgetful of its highest traditions as to validate that imposition without a word of criticism.

I should like to reinforce the very cogent argument which has been urged on the Committee by the hon. Member who last spoke. The question the Committee has to decide is really an important one of principle. Those people who made their claims and were vigilant to safeguard their rights are, if this retrospective legislation is passed, to be penalised. Why should these people who knew, or at any rate should be assumed to know, what their rights were, but let time slip by, be placed in a privileged position? It would be an evil day for the citizens of this country if they exercise what they believe to be their proper rights under the law of the land, as these claimants have done and if judgment is given in their favour, can never be certain afterwards whether that judgment is going to hold good or not, whether some Minister may not bring in a Bill which will deprive them of the fruits of their vigilance and of the benefits which they have properly had by bringing their action in time. Judgment has been given in the Court of First Instance that all claims brought after 31st August, 1922, are barred. It is true that judgment may be appealed against, but until it is appealed against it is the law of the land, and if a remedy is sought it should be sought in the proper way. The President of the Board of Trade has referred to the sum of £18,000,000. I do not know the actual figures of the total amount claimed, but it is somewhere about £500,000, and that is the only sum of money that is involved, and in order to meet that sum of money you are going to violate one of the most fundamental principles of the English Constitution. I hope the Committee will hesitate, because this is not a party question. It is a question that affects all parties equally. It affects the rights of the citizens of the country, and when they have brought their actions in time and have not allowed time to slip, they should not be deprived by the action of the Executive of the fruits of their vigilance.

10.0 P.M.

I want to appeal to the Committee really to come down to the actual facts. It is not so much a high constitutional matter as has been suggested. As a matter of fact, the right hon. Gentleman who moved the Resolution has an easier task than I had in the last Parliament, because I had to ask the House actually to reverse, or invalidate, a legal judgment, and the House was very reluctant to do it. I was able to quote in aid much high authority, not of my own party, and the House eventually undertook, not merely to validate these charges, but actually to invalidate a judgment which stood against the Crown. We did not merely discuss the matter two or three times, but half a dozen or more, and after repeated discussions the House decided, without a dissentient voice, actually to invalidate a judgment which stood against the Crown. Now, such is the great uncertainty of the law, that judgment has been reversed by the Court of Appeal, and at present there is no judgment against the Crown. We are not proposing by this legislation to take away from any subject any right which he has maintained at law, but really—I do not speak as a lawyer—I cannot help thinking that what is at stake in this matter is not so much the £18,000,000, or even the few hundreds of thousands, which might possibly be given against the Crown. It is rather more the multiplication of costs, which may go on and has been going on. Since this time last year, when certainly adequate notice was given by the Government that legislation of this kind would be pursued, more than a dozen suits have been entered against the Crown, one claim as late as 27th September, 1924. That covers a balance which represents a very large sum. It is obvious, I think, that this legislation, which four successive Governments pursued pertinaciously, if not very happily, is going to pass, but the longer it is delayed the more opportunity there is to multiply those costs, which the House insisted last year should be provided for on a very generous scale. When I had the carriage of this proposal, I proposed to give costs, as I thought, on a very generous scale, and the discussion in the Committee on that point turned on technical matters with which I was not acquainted—I am happy to say my acquaintance with solicitors' bills is neither extensive nor peculiar. The very generous proposal I had to make on behalf of the Government to pay the costs had to be expanded and expanded and expanded, so as to enlarge those costs to what you may call a super-generous scale. Those costs are still to be earned by the multiplication of these proceedings, and I rather shudder to think how many actions might be entered—it costs very little to begin an action in the Courts—against the Government if this matter is left longer in suspense.

Surely the Committee must take a common-sense view about this. It is untrue that the House of Commons was not aware that these charges were being levied. They were referred to in Debate more than once and actually this House, by its Select Committee on Expenditure, pointed out that the charges were being levied and urged that those charges should be sufficient to meet the entire costs and so on. It is true that if these charges were really of the nature of taxation, as the Courts ultimately held, the assent of this House was not given in the traditional and elaborate form with which this House authorises the Crown to levy taxation. But surely it is only by a technicality that they could be held to be of the nature of taxation. They were charges voluntarily paid by people who, in many casss, clamoured to the Government for permission to have these licences, and they got them and willingly accepted the charge. As to the amount, the hon. Member for York (Sir J. Marriott) repeated what was said last year, that it was all nonsense to talk about such a sum as £18,000,000, but that all that was at stake was some quite small amount of £500,000 or a few hundred thousands. If I rashly said it would not be more than £1,000,000 that was probably extracted from me under cross-examination. I should not be so venturesome as to say what it might be. At present it is nothing, and we are quite uncertain what some future judgment of the highest Court may determine as to the exact effect of the Act of Indemnity as to whether the claim is really founded on tort or on contract, or something in the nature of contract or something in the nature of tort, and it passes the wit, I will not say of man but of any competent lawyer, really to assure the Government what the extent of its liability may be.

That is just one of the cases where legislation is not only as it seems to me permissible but a very proper case for legislation. It is for this House to resolve doubts and prevent uncertainties, and if the hon. Member for York (Sir J. Marriott) had given us a few more quotations from the judgments in these cases he would have found that learned Judges of all parties had expressed themselves in rather strong language about the inequity of the claims against the Crown, saying that there did not appear to be a shred of moral justification in some of them. The learned Judges found themselves unable to refuse to give judgment on them, but expressed themselves in very strong terms as to the inequity of the proceedings. I venture to suggest to the Committee that this is just the moment when all these doubts should be resolved and that the Crown should no longer be under the stigma of having extracted £18,000,000 from the people without having the actual technical right to raise it. For that reason I join in the appeal to the Committee to let this formal stage be taken now, and not when the Bill is about to be introduced, for the same reason that the late Government gave notice, even before we went out, of a similar Resolution in order to get it passed by the Committee at the earliest possible moment. That was in order to give definite notice to all those people who might be hesitating whether they should bring their actions or not, so that they should be saved the trouble and expense, and ultimately the taxpayers saved the expense of having to pay their costs. Surely, if it is desirable that this legislation should be entered upon, it is desirable that formal notice should be given at the earliest possible moment, and for that reason I join in the appeal to the Committee.

I would not have intervened to-night except for the observations which fell from my right hon. Friend the President of the Board of Trade when moving this Motion. The particular point is his statement that this Bill when it left the House during the last Parliament left with the unanimous support of this House. I have taken the trouble of looking up the OFFICIAL REPORT since that speech has been read this evening, and I find that it only passed the House at 20 minutes past one in the morning when everybody was inclined very much to go home, and I want to assure him and the other Members of the Committee that there were very many Members on this side of the House who felt then and feel now that this type of legislation is a very bad form of legislation. There is a tendency on the part of the executive when litigation goes forward and a decision is given against the Government to immediately bring forward a Bill which is going to reverse that decision in this House. It has not been done once, or twice, or three times recently. It was done a few times during the last Parliament to my knowledge. For my part, I will stand up in this House and protest against that form of legislation. If of two ordinary litigants one loses his case, the one who loses his case has got to pay, but when the Government loses a case it brings forward new legislation to reverse the decision. I think it is abominable. I have always protested against it in whatever form it has come before the House. [An HON. MEMBER: "Why did you not do it in 1922?"] When we come to look at this Bill when it was before the last Parliament it occupied the House from the early days in February to the middle of June, almost every week. I hope my right hon. Friend does not think that the Bill when it is passed, because it may go through without a Division to-morrow, can be promised an early passage without a good deal of talk, even from his own side, upon the Bill, which I think should be scrutinised in the gratest detail.

Question put, and agreed to.

Resolutions to be reported To-morrow.

Anglo-Italian Treaty (East African Territories) Bill

Order for Second Reading read.

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

The object of this Bill is to fulfil the definite pledge given by ourselves to Italy at the most critical period of the Great War. On the eve of Italy's joining the Allies, it was agreed that, "in the event of France and Great Britain increasing their Colonial territories in Africa at the expense of Germany, those two Powers agree in principle that Italy may claim some equitable compensation, particularly as regards the settlement in her favour of the questions relative to the frontiers of the Italian Colonies of Eritria, Somaliland and Libya and neighbouring Colonies belonging to France and Great Britain." The immense efforts and sacrifices of Italy during the long struggle did not diminish our responsibility to give effect to that claim. Immediately after the War, in 1919, and again in 1920, this matter was thoroughly discussed between my predecessor, Lord Milner, and successive Italian Foreign Secretaries. Subsequently to this, the matter was delayed; firstly, by Italian claims for still further concessions, and secondly, by its becoming tangled up with other issues connected with the general settlement, more particularly the question of the Dodecanese. When it became clear that those matters might not be settled for some considerable time, the present Leader of the Opposition, then Secretary of State for Foreign Affairs, came to the conclusion that we ought no longer to delay the fulfilment of a pledge which we certainly meant to honour, for the sake of linking it up with matters not directly connected with it. Accordingly, a Treaty was drawn up, and signed on 15th July last, between the right hon. Member for Aberavon (Mr. Ramsay MacDonald) and the Marquis Torretta, the Italian Foreign Secretary, which is embodied in the present Bill.

Under that Treaty, we cede to Italy a territory of altogether nearly 34,000 square miles in extent, namely, the territory along the River Juba, and a strip of from 50 to 100 miles wide on our side of the bank. The essence of the cession is, of course, the cession of the Juba Valley itself, which has hitherto been the frontier between the two coutries. That valley might possibly at some time be of very considerable value for irrigation purposes, if the capital and population are found. Certainly, its value to Italy, if she possesses the whole of the valley, is much greater than the value to either of us of possessing only half the valley, in treating it as one unit for irrigation purposes. On our side of the valley there lives a small population of Nomad Somalis, 15,000 or 16,000 in number. They have access to the river and also use the grazing ground for some distance back, and the reason for the cession of the territory as a whole is to keep these tribes together as a single unit, and give them the full use of their natural grazing ground. If we kept the territory, we could not use it without access to the river. Therefore, the cession of that territory is consequent upon the cession of the River Juba itself.

The whole matter has been delayed, perhaps, unduly long, and there is a special reason for urgency in settling it now, because the actual boundary delimitation can only take place during the three months of April, May and June, when there is enough grazing to enable the Boundary Commissioners to travel over the area. If we can get the Bill advanced now, and settled immediately after the House meets again, it will be possible to appoint the Boundary Commissioners and to enable them to get out to Jubaland before the beginning of April. That is why the House is invited to deal with this matter at this stage. It is a question of our showing our good faith to a gallant ally, and it does not mean any real diminution of the power or strength of the British Empire.

I beg to move to leave out the word "now," and at the end of the Question to add the words "upon this day six months."

With the concluding remarks of the right hon. Gentleman we all heartily agree, and any remarks that I have to make about this Treaty are couched in no spirit of hostility or criticism of the Italian people or even of the Italian Government. The Italian Government is entirely their own affair, although it is not of my political complexion. It is necessary for me to say that, because I have protested against people who criticise the Government of Russia, and I should protest against people who criticise the Government of Italy. I do not want it to be thought that I am actuated with any spirit of hostility to the Government of Italy. I have seen Treaties brought before this House that were a good deal worse than this Treaty. Taking the Treaties that have been brought before this Parliament since the Armistice, with the exception of the Treaty of Lausanne, I must say that they have been uniformly bad, while this Treaty is only bad in parts.

The principal objection I have to it, and I hope hon. Members will treat this matter seriously, is that, apparently, no attempt has been made to consult the native population of the area concerned. I regret that the Foreign Office is not represented in this Debate, unless the hon. Gentleman who speaks for the Department of Overseas Trade is representing also the Foreign Office. I believe that he has a foot in each camp and divides his allegiance between the Board of Trade and the Foreign Office. I regret that the Foreign Secretary is not present. He in Borne did as the Romans did, but he seems also to have imbibed the local atmosphere, or some of it, and does not seem to think it worth while to come here and explain an important Treaty in the way that the House is entitled to have it explained. The fact that the late Prime Minister has his name attached to the Treaty does not altogether disarm me, because the Treaty is carrying out a policy that was not his. His foreign policy, admirable as it was looked at broadly, was not altogether without blemish. Although his name is on the Treaty, I nevertheless consider it necessary to make one or two protests.

With regard to this question of the non-consultation of the inhabitants it may be said that these are nomads, savages, heathen and so on. But so are many of the inhabitants of the Sudan, and three or four British Governments in succession have declared that they have ascertained the wishes of the Sudanese, who have expressed a preference for Government by a certain nation, namely, ourselves, as opposed to Government by the Egyptian nation. There are tribes in the Sudan that are not as far advanced in civilisation as the inhabitants of Jubaland. If the consultation of the inhabitants is right in reference to the Sudan, surely the same principle should be applied to this different part of Africa? We should have consulted the inhabitants when the original Treaty was drawn up in 1915. The Treaty was part of the price of Italy's entry into the War, and we should have had a Clause inserted to provide that the wishes of the local inhabitants were to be respected. I regret that the late Government did not carry out that idea. On the 2nd of June last, Mr. Daniel Somerville, then Conservative Member for Barrow, raised this question, and I was delighted to see a Conservative taking an interest in the aboriginal population of Africa. He asked the Secretary for the Colonies: That is a most extraordinary provision. It may be said that, when they emigrate, they will go in for raids, for stealing each other's cattle, and all that sort of thing, but I think that is a very thin argument. They are being treated as if they were cattle in an area infected by foot-and-mouth disease. They are not even allowed to cross the frontier if they do not like the rule to which it is proposed to subject them. That is an intolerable provision to put into any treaty signed by a British Secretary of State. I protest against it, and I believe in doing so I speak for most of my friends on these benches, and, according to the votes cast at the Election, every one of us equals 10 hon. Gentlemen opposite. We certainly represent some millions of voters in the country, and, what is much more important, we represent a great tradition in these matters. It is against our principles to adopt such a policy as this, and although I know there are difficulties in this case because of our wartime commitments, we will always resist attempts to exchange or sell or give away territory as between one Power and another without, as far as possible, consulting the inhabitants. In this case, as far as I know, no attempt has been made to do so. It may be said that these are wild nomadic tribesmen, and that it is impossible to consult them; but we are only in these territories as a result of local agreements and treaties entered into with local chiefs, headmen or notables. Part of this territory is held under a treaty from the Sultan of Zanzibar, who, it seems, has been consulted, and who receives £1,000 a year as part of the swag. But it has always been the British practice, even when we have conquered a territory by force of arms, to make an agreement with the local notables, headmen, mullahs, or whoever might be the leaders of the people who could be consulted. We did that many centuries ago in Ireland, and because we did not keep our agreements we have had nothing but trouble since. We have always done it even in the case of the most primitive communities which we have taken by force of arms.

We heard some time ago from the Noble Lord who is now Lord President of the Council, and who was then Foreign Secretary, that this portion of Jubaland was not to be ceded to Italy until the Dode- canese question was settled. Has that matter been left in the background? I should like to know whether this matter of the Dodecanese is quite divorced from the question of Jubaland. The leader of the Conservative party in another place certainly took up the attitude I have indicated. It is no use our Italian friends saying, "Oh, this is Africa and that is Cyprus." I think we were equally wrong in regard to that island, and I protested in the time of the last Government, who were as Imperialistic as their predecessors on that particular question. This territory is part of Northern Africa, and there is trouble in Northern Africa at present. Another tribe which was not consulted before its territories were bartered away has risen in revolt and driven out the people who attempted to govern that territory by force. There will be a tremendous repercussion throughout the whole of North Africa, and we may have made a very great mistake in not, at any rate, trying to get these poor tribesmen on our side. They may be weak in numbers and primitive in their habits of life, but handing over this territory may be taken as a symbol by other Moslem peoples in Northern Africa, and may redound to our discredit in the future. I repeat that there are troublesome times ahead in Northern Africa, and I think that in this case a mistake has been made.

I realise that we were under serious obligations during the War, and that it was necessary to make a certain offer to get Italy in. She performed valours and did valuable service to us, and I do not want to press the matter too far, but I have raised certain questions which are, at any rate, worthy of some reply from the Government, if only as establishing the precedent in this case, which I hope will not be repeated in the future. Some time ago the question of the sale of liquor to the United States from the, Bahamas was raised by certain parties, and the possible sale of the islands to that country, but the gravest possible reply was made by two successive British Governments that no part of the British Empire was for sale. This is only a protectorate, but we have departed from that principle in this case, and without consulting the inhabitants, however primitive, of those territories. I hope that will not be repeated. I raise the question out of no hostility to Italy, but as showing what I conceive to be an objection to a violation of an ancient British principle.

I beg to second the Amendment.

I do so, not that I desire to press it too far or to ask for a breach of any understanding honourably entered into with Italy during the War. It is clear that any understanding between this country and Italy must be honoured, but will the Colonial Secretary tell us whether Article 9 of this Treaty was part of the Agreement arrived at between these two countries in 1915? I understand that this Article 9 was no part of that Agreement, and if it were not part of the Agreement at that time, why has it been put into this Treaty, with this grave restriction of the liberties of these people? The understanding having been arrived at at that time, I have no desire, as I say, to press the matter, as clearly the Treaty must be carried out if it embodies merely the understanding arrived at between the two countries, but this precedent of transferring a population from one Power to another, and of imposing restrictions upon them without consulting them should not be followed again.

I thought I had already, by anticipation, answered the question addressed by the hon. and gallant Member for Hull (Lieut.-Commander Kenworthy) in regard to the Dodecanese. It is true that at one time, when it was thought that a general settlement of all outstanding questions after the War could be arrived at fairly soon, we held over the settlement of the Jubaland question to be part of the general settlement, but when it became clear that these other matters could not be disposed of at an early date, the right hon. Member for Aberavon (Mr. Ramsay MacDonald) came to the conclusion that we ought not to hold up any longer the fulfilment of this pledge, which he certainly intended to honour in full, by waiting for other matters which do not immediately arise on this Bill. As regards consultation with the natives, I think that anyone who realises the position there will understand that that is practically impossible. It is a very small Nomad population wandering over a very great extent of territory, which is as near to being an empty territory as is to be found anywhere in the British Empire. Nor are they people who would be likely to be affected directly by any change of Government. They are not in any sense people closely administered. They wander around between the water-holes and the grazing grounds entirely undisturbed by the ordinary interference of the Government.

The only object we had in view in dealing with the frontier was to make sure there should be no interference with the ordinary movements of these tribes between the river and their grazing grounds. The frontier has been entirely laid down on that basis to avoid any disturbance of the ordinary life of these natives. Lastly, as to the question of the movement of these natives across the frontier, that is simply due to the fact that the number of persons who can use territory of that sort round each water-hole is very limited, and there is no room across the frontier. Therefore, if anyone did attempt to cross it, they would not only find it impossible to get subsistence, but there might also be grave disturbance with other Somalis across the border.

Before this Resolution is put to the House, I wish to take this, perhaps, the only opportunity of asking one or two questions. With the Treaty itself I am in entire agreement, and I do not propose to oppose any of its provisions, but there are one or two questions I wish to have answered now in order to clear up the situation. In connection with Article 3, will the cancellation of the Treaty of Commerce between Italy and Zanzibar of the 23rd May, 1885, leave any other nationality with special concessions or privileges in Zanzibar, or, if this Treaty goes through, will all foreign nationalities in Zanzibar remain on precisely the same terms? Again, in regard to Article 4, I should like to ask whether the annual payment of £1,000 to the Sultan of Zanzibar is to form a deduction from the annual payment paid by the British Government to the Sultan of Zanzibar, or is it to be an addition to that sum? Then, I should like to ask, if the Italians are at liberty, under the Treaty, to commute this annual payment by the payment of a capital sum of £25,000 cash down, are we in a similar position with regard to our own annual payment? Could we commute that annual payment by a cash down payment, and would that free us on the mainland of all further responsibilities to the Sultan of Zanzibar?

There is a further point, in connection with Article 6, with regard to any British inhabitants of the territory that is being transferred. In this House a question was put some time ago to ascertain whether there were, apart from natives and other nationalities, any British subjects or companies that might be affected by the transfer of territory, and, in case there were, and their interests were affected by this Treaty, was there any provision—I do not see it—in the Treaty for providing for the payment of compensation if they chose to make good a claim? Finally, there is one other point I should like to raise. No one knows better than my right hon. Friend the Secretary of State that the budding consciousness of political worth is very highly developed in Nairobi. I should like to know whether this particular Treaty is being submitted to the Legislative Council of that Colony. It is quite true that at the present moment it does not possess absolute self-government, but we all know that it finds the revenue for its own Government, it pays its own expenses, and it has been promised, in due course, self-government. In this case we are transferring, as it seems to me, a portion of the territory which is under the government of the Colony of Kenya, and I think it is quite fitting that the people should have the opportunity, like this House, of expressing their opinion of the Treaty and of endorsing or ratifying it.

I am not in any way opposed to this Treaty which deals with a portion of Africa that has cost us many thousands of pounds in the past and many valuable lives, provided that the Italians do their duty on their side of the boundary, as I think they will do. Under Article 1 it is proposed to transfer sovereign rights by virtue of the Protectorate over Zanzibar. As the Colonial Secretary no doubt knows the foundation of our rule in that part of Africa was the concession to a company in 1888, followed by the Agreement of 1895, and both in the original concession of 1888 and, in the Agreement of 1895, the Sultan of Zanzibar expressly reserves the right of his flag to fly; and in a portion of the territory extending to about 10 miles round Kismayu his flag flies to this day. The point I wish to raise is whether power, by virtue of the Protectorate, is enabled to hand over to another power a sovereign State or a portion of the State which is under this Protectorate, and whether there is any precedent for such action.

With the permission of the House, I should like briefly to answer the questions that have been put to me. The transfer referred to by the hon. Member for Blackburn (Sir S. Henn) is with the concurrence of the Sultan of Zanzibar. As regards the payment referred to, and as to whether there is any reduction of the payment to Kenya, that is so; but as regards commutation for the rest of the Kenya payment we have no arrangement at present; whether that will be considered at another time I do not know. In regard to Article 3, the cancellation of the Treaty of Commerce between Italy and Zanzibar, there is a French Treaty which still remains. The rights of British subjects or companies in the area remain unaffected, but I do not think that any question of loss on transfer is likely to arise or can arise.

I do not want any action that I have taken to be misunderstood in Italy. In view of what the right hon. Gentleman has said, I should like to withdraw my Amendment.

Amendment, by leave, withdrawn.

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

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

Northern Ireland Land Bill

Order for Second Reading read.

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

I must apologise to the House for asking it to consider the Second Reading of this Bill at so late an hour, but I hope to convince them that this is a Bill to which it can give a Second Reading with safety and with justice, subject to consideration in Committee. My reasons are as follows: In the first place, we are not by this Bill doing anything which is new or was invented by ourselves. We are completing a long course of land purchase in Ireland. This is the last Measure which is necessary to complete a process which has been going on, with the consent and encouragement of all sections of opinion in this country, for the last 50 years. The second point is that this Bill was introduced in the same form as it is now by the late Government, which undertook that it would ask the House to give it a Second Reading at the earliest possible opportunity. The third reason is that we are doing in this Bill something already agreed to by all sections of Irish opinion. This Bill carries out in detail and exactly, subject to some very small alterations, the only unanimous recommendation made by the Irish Convention of 1918. It was a unanimous agreement between the landlords' representatives and the tenants' representatives at that Convention, and this Bill carries that out, so far as the six counties of Northern Ireland are concerned.

Lastly, and perhaps most important, this is a Bill which only comes before this House because land purchase is one of the powers reserved to His Majesty's Government under the instrument which gave self-government to Northern Ireland. It is a reserved power, but this Bill imposes ultimately no charge on His Majesty's Government. The whole cost of land purchase under this Bill will be borne by the Northern Government. But for the technicality, that it is a reserved matter, this is really the affair of the Northern Government. His Majesty's Government are responsible for this Bill, and I do not want to shuffle off that responsibility on to the Government of Northern Ireland, but this Bill has been drawn up in consultation with the Government of Northern Ireland, and represents their view and what they wish. Therefore, I think the House can give the Bill a Second Reading, subject to examination on the Committee stage.

It is a very complicated Bill. It is a question which, I know, is not familiar to many Members of this House, and one with which I was extremely unfamiliar when I was Chairman of the Committee which dealt with this question last year. But the broad principle is perfectly clear. For 50 years successive Governments in this country have endeavoured to carry through land purchase in Northern Ireland by a system of advancing the purchase price of the land to the tenant, or, rather, direct to the landlord, vesting the ownership of the land in the Irish Land Commission, and asking the tenant to pay an annuity corresponding to a percentage of his previous rent. It must be remembered that, unlike this country, all the rents of which a percentage is thus paid to the Land Commission are not rack rents and bargain rents, but rents judicially fixed.

Up to the present those various land purchase Acts have been Acts to facilitate voluntary agreement between the tenant and that landlord, and in the case of Northern Ireland, under these successive Acts more than two-thirds of the land has already been transferred from the landlord to the tenant. The landlord and tenant both agreed in the Convention of 1918 that it was necessary for the final completion of that process to make land purchase compulsory and to adopt a basis for the automatic fixing of the annuities to be paid, and according to the basis laid down by the Convention, the percentage of rents which were to be paid by the tenant was to be the average percentage for the county on all sales carried out voluntarily under the Land Act—a basis which, I think, the House will agree is a very fair one. That is the basis adopted in this Bill, and it is a basis which works automatically. It will enable the process of land purchase to be finally completed, and I hope the House will allow this Bill to go upstairs to be examined closely in Committee, as I think it ought to be, and where discussion may take place on the points of detail, which do not affect the general principle of the completion of land purchase, to which everybody in this country has been pledged and which it is now proposed to carry out by a compulsory system agreed to by both landlord and tenant.

I should like to ask the Noble Lord, as be said in the course of his remarks that no charge ultimately falls upon the British taxpayer, do not I understand that at the present moment the British Treasury takes responsibility for the debt involved in the land purchase, and that we pledge our credit.

Under the existing land Acts of 1903 and 1909, the British Government, so far as Northern Ireland is concerned, which is what we are now considering, guarantees the stock, and the stock to be issued in accordance with this Bill will be guaranteed by the British Government in substantially the same way as the British Government guarantees the stock under the Irish Free State Act. This House has already agreed to that guarantee being given in that case. This liability under this Bill is not more than the liability as guarantor on substantially the same basis in the cases of the Irish Free State, and no actual burden or liability falls on the British taxpayer.

I have no wish to impede the progress of the Bill at this stage, although I quite agree with him that it wants to be examined very carefully in Committee, but these are two different propositions—guaranteeing a land purchase under the Southern Ireland and doing so in Northern Ireland. We have got to recollect that there is a Boundary Commission at present sitting and Northern Ireland may be something very different after the conclusion of that Boundary Commission than it is now, and our friends from Northern Ireland have told us that if anything is taken from the present six counties, they will be an uneconomic proposition.

I hope the House will not get into a discussion of the Boundary Commission. The shortest way to reply to the hon. Member is to assure him that no stock can possibly be issued under this Bill until long after the Boundary Commission has reported.

I do not want to raise the boundary issue; but it is quite a different thing this nation guaranteeing land purchase stock in Southern Ireland and guaranteeing it in Northern Ireland, where we are told that it is not likely to be an economic proposition. If you say Northern Ireland is not able to maintain itself as a separate portion of Ireland then these pieces of land become uneconomic propositions, and the burden falls upon the British Treasury.

I assert that land purchase stock in connection with Northern Ireland is better stock than in Southern Ireland. Under the Act of 1920, setting up Northern Ireland as a separate entity, the Income Tax and Super-tax are collected by the British Government, and under the Act of 1920 the British Government can charge the cost of reserved services on the proportion to be handed over to Northern Ireland. Therefore, if there should be any deficiency in respect of Northern Ireland the British Government has got in hand the money to make up such deficiency, whereas in the case of Southern Ireland the British Government has nothing in hand, and simply has the right to make a claim. I ask hon. Members to allow this Bill to get a Second Reading and go through Committee.

I appeal to the Government not to press the Second Reading of this Bill now. If there is any question of urgency, I think the House ought to consider it, but no such suggestion has been put forward.

This House has already guaranteed the Southern Ireland Land Stock, and it is only fair that it should be shown that this House is equally desirous of placing Northern Ireland in the same position.

We are not expressing any doubt by merely demurring to taking the Second Reading of this Bill at this hour. [HON. MEMBERS: "Agreed! Agreed!"] I understand that there has been no sort of agreement to take the Second Reading, and I was quite unaware that it was going to be taken to-night. That is a very long and technical Bill, and the House is entitled to a Second Reading Debate and to have an opportunity of considering it. Is it suggested that in the Parliament of Northern Ireland they would take this Bill at such short notice without any suggestion of urgency at all? We should not be asked to do these things without some explanation. It is not clear what the financial arrangement is between this Government and Northern Ireland. Last year, at this time, when the position was reversed, no sort of facility was given to the Government for this Bill by the Opposition. [An HON. MEMBER: "You are talking it out"— Interruption .]

May I draw your attention, Mr. Speaker, to the exceedingly unparliamentary remark which came from the hon. Member for Streatham (Sir W. Mitchell)?

It being Eleven of the Cluck, the Debate stood adjourned .

Debate to be resumed upon Tuesday, 10th February .

Gas Regulation Act, 1920

Motion made, and Question proposed,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Newcastle-upon-Tyne and Gateshead Gas Company, which was presented on the 9th December and published, be approved."—[ Sir B. Chadwick .]

I am sorry to detain the House at this time on a Gas Order, but the hon. Member asks me if I will postpone it, and I should like to point out that most serious results will follow from the postponement of this Order at the present time, because, at the end of the year, certain options which the Newcastle Gas Company wish to exercise will lapse, and if they lapse it will, as I think the hon. Member will realise, result in incalculable harm. I must just say, therefore, a word in explanation, and ask the hon. Member if he can see his way to withdraw his objection. The objection to this Order arises out of something outside the Order itself, having nothing whatever to do with any party to the Order, and it is raising an obstacle which cannot be removed either by the parties to the Order, by the Government, or by the hon. Member himself, as he well knows.

The position, very shortly, is this: The Newcastle-on-Tyne Gas Company wish to acquire the undertakings of the Walker and Wallsend Gas Company and the Chester-le-Street Gas Company. That is a perfectly reasonable enterprise, which will produce a supply of gas which will be acceptable, more than anybody else, to the hon. Member and the people whom he represents, and they are objecting to it with an ulterior motive. Between these concerns there comes an area called Birtley, which is, and has been for years, supplied with gas by the Birtley Iron Company. The hon. Member and the Chester-le-Street Rural District Council think that the Birtley people are being charged too much for their gas, and, in order to bring pressure on this particular concern, they are going to oppose this Order. I put it to the House that the Chester-le-Street Rural District Council, by the merest accident, have discovered a weapon with which they think they can squeeze the Birtley Iron Company. Whether the Birtley Iron Company are charging too much for their gas I do not know. In any case, they cannot be heard in this case, and having regard to the fact that by postponing this enterprise the hon. Member will inflict immeasureable harm by depriving the very people for whom he is speaking of a much more cheap and effective gas supply, and withal not achieving the very purpose he is out to achieve, I hope he will see his way to withdraw it.

I beg to move, "That the Debate be now adjourned."

I think this incident shows the wisdom of those responsible for the passage of the 1920 Gas Regulation to give certain powers to inspectors to make orders, when as a sort of afterthought the House of Commons thought it would be better for those Regulations, after being decided by the inspector, to be considered and finally confirmed by the House of Commons. The position in this matter is that this company is going to absorb a good many other companies, and among them is the Chester-le-Street Company. The Gateshead Company has to go three miles through Birtley to get to Chester-le-Street to supply the town with gas. It runs alongside the pipes of the Birtley Iron and Coal Company, which actually buys in bulk from the Gateshead and Newcastle Company and supplies at second-hand, and much dearer, to the people of Birtley, through whose area it passes. This, I understand, is the result of an old agreement which gives the Birtley Coal Company a monopoly over that area, an agreement which is going to be confirmed by this Order. I do not agree that this is going to ruin and wreck the whole proposal under this Order. The hon. Gentleman knows as well as I know that there have been suggestions about negotiations between the Newcastle and Gateshead Gas Company and the Birtley Iron and Coal Company. As a matter of fact, I think Newcastle and Gateshead would not make any objection if we could do anything here to bring these two parties together. The best thing that could be done in the interest of all parties, even the Gateshead people, who want this Order, would be to post pone this matter in order to give them an opportunity of coming in contact with the Birtley Iron Company to get rid of what is undoubtedly a monopoly which is having a very bad effect on people of that area.

One of the directors of the Gateshead and Newcastle Company is also a director of the Birtley Iron and Coal Company. I do not think it should be too difficult to get those two parties together in order to make a reasonable arrangement to allay the storm of feeling there is in Birtley over this matter because of the agreement which is giving the Birtley Iron and Coal Company a monopoly. That company used to produce gas, but when they found they could get it reasonably cheap from Newcastle and Gateshead, from their point of view, they gave over producing.

I do not know if private interests here would be proud of the system operating in this area. The Birtley Iron and Coal Company's mains are going three miles through this town; side by side the Gateshead and Newcastle mains also go through the same town. I think even this House of Commons, with its love of good business, whatever it thinks about private interests, is not prepared to support that proposal.

I therefore move the Adjournment of this matter in order to give the parties an opportunity to come together, which I am sure they will do if this matter is adjourned to-night. I do not think there is a great deal in what the hon. Gentleman said about the option going out. As a matter of fact it does not matter the slightest, because all the parties, the Walker, and the Chester-le-Street, and all the parties concerned, shareholders, directors and everyone, are given particular benefits under this Order. Therefore there is no loss through the term of option expiring in this case.

I beg to second the Motion.

Question put, "That the Debate be now adjourned."

The House divided: Ayes, 36; Noes, 160.

Division No. 8.]

AYES.

[11.14 p.m.

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

Jones, Morgan (Caerphllly)

Slesser, Sir Henry H.

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

Kelly, W. T.

Stephen, Campbell

Barnes, A.

Lawson, John James

Sutton, J. E.

Batey, Joseph

Mackinder, W.

Tinker, John Joseph

Bowerman, Rt. Hon. Charles W.

Maxton, James

Varley, Frank B.

Buchanan, G.

Naylor, T. E.

Viant, S. P.

Compton, Joseph

Palin, John Henry

Webb, Rt. Hon. Sidney

Connolly, M.

Potts, John S.

Whiteley, W.

Dalton, H.

Riley, Ben

Wilson, R. J. (Jarrow)

Davies, Rhys John (Westhoughton)

Robinson, W. C. (Yorks, W. R., Elland)

Windsor, Walter

Edwards, C. (Monmouth, Bedwellty)

Saklatvala, Shapurji

Gillett, George M.

Shaw, Rt. Hon. Thomas (Preston)

TELLERS FOR THE AYES.—

Hayes, John Henry

Shiels, Dr. Drummond

Mr. T. Kennedy and Mr. Warne.

NOES.

Acland-Troyte, Lieut.-Colonel

Goft, Sir Park

Nuttall, Ellis

Albery, Irving James

Greene, W. P. Crawford

Oakley, T.

Alexander, E. E. (Leyton)

Grenfell, Edward C. (City of London)

O'Connor, T. J. (Bedford, Luton)

Allen, J. Sandeman (L'pool, W. Derby)

Grotrian, H. Brent

O'Neill, Major Rt. Hon. Hugh

Applin, Colonel R. V. K.

Guinness, Rt. Hon. Walter E.

Peto, G. K. (Somerset, Frome)

Apsley, Lord

Hacking, Captain Douglas H.

Pilcher, G.

Baldwin, Rt. Hon. Stanley

Hall, Capt. W. D'A. (Brecon & Rad.)

Preston, William

Balniel, Lord

Hammersley, S. S.

Price, Major C. W. M.

Barnett, Major Richard W.

Hannon, Patrick Joseph Henry

Radford, E. A.

Beamish, Captain T. p. H.

Harland, A.

Ramsden, E.

Bennett, A. J.

Harrison, G. J. C.

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

Bird, E. R. (Yorks, W. R., Skipton)

Harvey, G. (Lambeth, Kennington)

Remer, J. R.

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

Haslam, Henry C.

Rhys, Hon. C. A. U.

Blades, Sir George Rowland

Hawke, John Anthony

Rice, Sir Frederick

Boothby, R. J. G.

Henderson, Capt. R. R.(Oxf'd, Henley)

Roberts, E. H. G. (Flint)

Brittain, Sir Harry

Henderson, Lieut.-Col. V. L. (Bootle)

Roberts, Samuel (Hereford, Hereford)

Brocklebank, C. E. R.

Heneage, Lieut.-Col. Arthur P.

Ropner, Major L.

Brooke, Brigadier-General C. R. I.

Henn, Sir Sydney H.

Sanderson, Sir Frank

Brown-Lindsay, Major H.

Henniker-Hughan, Vice-Adm. Sir A.

Savery, S. S.

Brown, Maj. D. C. (N'th'l'd., Hexham)

Herbert, Dennis (Hertford, Watford)

Shaw, Capt. W. W. (Wilts, Westb'y)

Brown, Brig.-Gen. H.C. (Berks, Newb'y)

Hilton, Cecil

Shepperson, E. W.

Bullock, Captain M.

Holbrook, Sir Arthur Richard

Slaney, Major P. Kenyon

Burton, Colonel H. W.

Holt, Captain H. P.

Smith, R. W. (Aberd'n & Kinc'dine, C.)

Butler, Sir Geoffrey

Hopkinson, A. (Lancaster, Mossley)

Smith-Carington, Neville W.

Campbell, E. T.

Horlick, Lieut.-Colonel J. N.

Smithers, Waldron

Chadwick, Sir Robert Burton

Hudson, R. S. (Cumb'l'nd, Whiteh'n)

Stanley, Col. Hon. G. F. (Will'sden, E.)

Charteris, Brigadier-General J.

Hume, Sir G. H.

Stanley, Lord

Christie, J. A.

Huntingfield, Lord

Stott, Lieut.-Colonel W. H.

Churchman, Sir Arthur C.

Iliffe, Sir Edward M.

Sugden, Sir Wilfrid

Cochrane, Commander Hon. A. D.

Inskip, Sir Thomas Walker H.

Templeton, W. P.

Cooper, A. Duff

Jacob, A. E.

Thomson, F. C. (Aberdeen, South)

Cope, Major William

Lamb, J. Q.

Thomson, Sir W. Mitchell-(Croydon, S.)

Couper, J. B.

Lister, Cunliffe-, Rt. Hon. Sir Philip

Tinne, J. A.

Courthope, Lieut.-Col. George L.

Little, Dr. E. Graham

Waddington, R.

Crookshank, Col. C. de W. (Berwick)

Loder, J. de V.

Ward, Lt.-Col. A.L. (Kingston-on-Hull)

Crookshank, Cpt. H. (Lindsey, Galnsbro)

Luce, Major-Gen. Sir Richard Harman

Warner, Brigadier-General W. W.

Cunliffe, Joseph Herbert

Lynn, Sir Robert J.

Warrender, Sir Victor

Curzon, Captain Viscount

Macdonald, Capt. P. D. (I. of W.)

Watson, Sir F. (Pudsey and Otley)

Davidson, J.(Hertf'd, Hemel Hempst'd)

McDonnell, Colonel Hon. Angus

Watts, Dr. T.

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

MacIntyre, Ian

Wells, S. R.

Dean, Arthur Wellesley

McLean, Major A.

Williams, A. M. (Cornwall, Northern)

Drewe, C.

Macmillan, Captain H.

Williams, Com. C. (Devon, Torquay)

Evans, Captain A. (Cardiff, South)

Macnaghten, Hon. Sir Malcoim

Williams, Herbert G. (Reading)

Everard, W. Lindsay

Manningham-Buller, Sir Mervyn

Windsor-Clive, Lieut.-Colonel George

Eyres Monsell, Com. Rt. Hon. B. M.

Margesson, Captain D.

Winterton, Rt. Hon. Earl

Fairfax, Captain J. G.

Merriman, F. B.

Wise, Sir Fredric

Fielden, E. B.

Meyer, Sir Frank

Wood, B. C. (Somerset, Bridgwater)

Ford, P. J.

Milne, J. S. Wardlaw-

Wood, Rt. Hon. E. (York, W. R., Ripon)

Foxcroft, Captain C. T.

Mltchell, W. F. (Saffron Walden)

Wood, E. (Chest'r, Stalyb'ge & Hyde)

Fraser, Captain Ian

Mitchell, Sir W. Lane (Streatham)

Yerburgh, Major Robert D. T.

Ganzonl, Sir John

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

Gault, Lieut.-Col. Andrew Hamilton

Murchison, C. K.

TELLERS FOR THE NOES.—

Gibbs, Col. Rt. Hon. George Abraham

Nelson, Sir Frank

Major Sir Harry Barnston and Major Hennessy.

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

Neville, R. J.

Glyn, Major R. G. C.

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

Original Question put, and agreed to.

Resolved,

"That the draft of a Special Order proposed to he made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the Halesowen Gas Company, which was presented on the 9th December and published, be approved."—[ Sir Burton Chadwick .]

Motion made, and Question proposed,

"That the draft of a Special Order proposed to be made by the Board of Trade under Section 10 of the Gas Regulation Act, 1920, on the application of the urban district council of Ellesmere Port and Whitby, which was presented on the 9th December and published, be approved."—[ Sir Burton Chadwick .]

There is an Amendment on the Paper in my name, but since it was put down I have interviewed the hon. Member for Wirral (Mr. Grace), to whose division this particular Order refers, and also my hon. Friend the Parliamentary Secretary to the Board of Trade. I think my hon. Friend the Member for Wirral must have got at the Parliamentary Secretary, because I found the Parliamentary Secretary's heart very stony, and he would not budge an inch. Although I have cogent reasons to put forward for my Amendment, it might possibly have involved the resignation of the Government or the resignation of my hon. Friend the Parliamentary Secretary, whom none of us desire to see removed from the Treasury Bench, and I do not move my Amendment.

Question put, and agreed to.

Personal Explanation

In the exasperation of the moment, when we failed to get the Second Reading of the Northern Ireland Land Bill, I was betrayed into using an expression for which I apologise to the House and also to the right hon. Member for Seaham (Mr. Sidney Webb).

The remaining Orders were read, and postponed .

Adjournment

Resolved, "That this House do now adjourn."—[ Commander Eyres Monsell .]

Adjourned accordingly at Twenty-three Minutes after Eleven o'Clock.