House of Commons
Wednesday, February 18, 1925
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Barrow-in-Furness Corporation Bill,
Bath Corporation Bill,
Bedwellty Urban District Council Bill,
Bideford Harbour Bill,
Bradford Corporation Bill,
Read a Second time, and committed.
Burgess Hill Water Bill,
Read a Second time, and referred to the Examiners of Petitions for Private Bills.
Burnley Corporation Bill,
Darlington Corporation (Transport, etc.) Bill,
Fylde Water Board Bill,
Read a Second time, and committed.
Gas Light and Coke Company Bill,
To be read a Second time To-morrow.
Hartlepool Corporation Bill,
Isle of Wight Highways Bill,
Leeds Corporation Bill,
Leicester Corporation Bill,
London County Council (General Powers) Bill,
Read a Second time and committed.
London County Council (Tramways and Improvements) Bill,
To be read a Second time To-morrow.
Manchester Ship Canal Bill,
Read a Second time, and referred to the Examiners of Petitions for Private Bills.
Middlesex County Council Bill,
To be read a Second time To-morrow.
New Shoreham Harbour Bill,
Newport Corporation Bill,
Nottinghamshire County Council (Gunthorpe Bridge) Bill,
Oakengates Urban District Council Bill,
Oxford Corporation Bill,
Read a Second time, and committed.
Port of London Bill,
Slough Trading Company Bill,
South Metropolitan Gas Bill,
To be read a Second time To-morrow.
Southampton Corporation Bill,
Stockton-on-Tees Corporation Bill,
Read a Second time, and committed.
Tyne Improvement Bill,
Walsall Corporation Bill,
To be read a Second time To-morrow.
West Cheshire Water Board Bill,
Read a Second time, and committed.
Westminster City Council (General Powers) Bill,
Wolverhampton Corporation Bill,
To be read a Second time To-morrow.
Westlothian (Bathgate District) Water Order Confirmation Bill,
Read the Third time, and passed.
Ministry of Health Provisional Order (Blackpool) [ Lords ],
Read a Second time, and committed.
Oral Answers to Questions
Questions
Rumania (Reparation)
asked the Secretary of State for Foreign Affairs if negotiations are in progress for meeting the grievances as to reparations of Rumania?
The Rumanian Government took part in the Inter-Allied Conference held in Paris in January, which dealt with the distribution of the Dawes annuities and cognate questions. The Rumanian representative signed the Agreement of the 12th January. No subsequent negotiations have taken place.
Can the right hon. Gentleman express any opinion about the disagreement which appears to have arisen between the Rumanian and the German Governments in this matter?
Mosul
asked the Secretary of State for Foreign Affairs if he can make any statement as to the progress of the Mosul inquiry; and what action the British Government has taken with regard to the appointments of the Turkish interpreters to the Frontier Commission, to whose presence there was strong local objection?
The Commission appointed by the League of Nations to investigate the Iraq frontier question arrived at Bagdad, after visiting London, Constantinople and Angora, on the 16th January, and is now pursuing its inquiries on the spot. With regard to the second part of the question, His Majesty's Government have registered a protest on the subject. The matter is one within the competence of the League of Nations, who have been fully informed of the facts.
Russia (British Claims)
asked the Secretary of State for Foreign Affairs whether, having terminated the negotiations for the treaties with Russia, any provision has been made for obtaining any payment for British investors and, if so, what are the arrangements?
No such provision has been made.
asked the Secretary of State for Foreign Affairs whether His Majesty's Government are taking any steps to negotiate a settlement of the debts and claims of British nationals against the Soviet Government; and, if so, what stage the negotiations have reached?
No fresh proposals for a settlement have been made by the Soviet Government. If such proposals are made, they will, of course, be carefully considered.
Is it the policy of His Majesty's Government to leave the creditors of Russia to their own devices, and not to help and support them?
If I thought His Majesty's Government could usefully take steps at present, we should take them, but I do not think so. Perhaps the creditors of the Russian Government will not be wholly sorry that I am not pressing forward the solution which the hon. Member desires.
Do I understand that the next step, in the right hon. Gentleman's opinion, lies with the Russian Government? Surely it must lie with us.
Black Sea (Naval Base)
asked the Secretary of State for Foreign Affairs whether His Majesty's Government have made, or contemplate, approaches to the Government of Rumania respecting the establishment of a British naval base in the Black Sea, or respecting the utilisation of any existing Rumanian naval base or harbour as a British naval base; also whether His Majesty's Government have received any approaches or offer from the Government of Rumania respecting the establishment of a British naval base, or to the utilisation of any existing Rumanian naval base or harbour in the Black Sea as a British naval base?
asked the Secretary of State for Foreign Affairs whether any conversations or negotiations are contemplated or have taken place between His Majesty's Government and the Rumanian Government respecting the establishment of a naval base in the Black Sea and the use of such a base, under contingent circumstances, by the British Navy?
There is no truth whatever in these reports.
S.S. "Edith Cavell."
asked the Secretary of State for Foreign Affairs whether he can say or will ascertain where the trial of Captain Boys, on the charge of casting away the s.s. "Edith Cavell," will be held, and, in view of the fact that 21 months have already elapsed since the loss of the vessel, if he will ascertain when it will be held?
I have requested His Majesty's Ambassador at Paris to ascertain when the trial is to take place, but the French Government have not yet received information on this point from Cayenne.
Can the right hon. Gentleman reply, not only as to when the trial will take place, but as to where it will take place?
No, Sir, I do not know.
Iceland (British Fishng Vessels)
asked the Secretary of State for Foreign Affairs if he will ascertain the total amount of fines inflicted by the Icelandic authorities on British fishing vessels during the year 1924?
The amount was 121,103 Icelandic kroner (approximately £4,500). This figure does not include the Court costs, nor the value of the catch and gear which were confiscated in some cases.
Is the right hon. Gentleman aware that the value of the catch and gear confiscated in most cases exceeds the amount of the fine, and should, therefore, be taken into account in this return?
Will the right hon. Gentleman make representations to the authorities and to the English representatives in Iceland in order that these poor people, who are our own fishermen, may receive better protection and justice from the Icelandic people?
I think that, in the case of a question like the second supplementary question, I ought to have notice. As to the first supplementary question, I have answered the question in relation to the fine, and, in order that there may be no misconception, have said that the fines do not include the seizure of gear and so forth, which I can quite understand might well, in many cases, exceed in value the amount of the fine.
Will the right hon. Gentleman see that the authorities in Scotland take a leaf out of the Icelanders' book in regard to fining trawlers?
That has nothing to do with the question on the Paper.
Sudan
Anglo-Egyptian Agreement
asked the Secretary of State for Foreign Affairs in what manner the Condominium Agreement was given effect to before the war, particularly in reference to the costs and allegiance of the forces in the Sudan and the consideration of irrigation proposals?
The administration of the Sudan was carried on in accordance with the terms of the Anglo-Egyptian Agreement of 1899. The cost of those units of the Egyptian Army stationed in the Sudan were met by the Egyptian Government. The cost of the maintenance of one British infantry battalion and a small detachment of garrison artillery at Khartum was met by His Majesty's Government, though it is to be remembered that the Egyptian Government made an annual contribution of £150,000 towards the total cost of the, British forces in Egypt and the Sudan. In accordance with Article 3 of the Anglo-Egyptian Convention the supreme military command of the Sudan is vested in the Governor-General, to whom all troops stationed in the Sudan owed allegiance. As regards irrigation the Egyptian Department of Public Works were responsible in all matters relating to the supply and distribution of the waters of the Nile.
Have the British Government the right to vary the terms of the obligations of this Condominium Agreement without the assent of the other parties?
The British Government loyally carried out its part in that arrangement. The expulsion of the Egyptian troops from the Sudan was necessitated by the failure of Zaghloul Pasha's Government to observe their side of the bargain and the obligations attaching to it.
Will the right hon. Gentleman kindly reply to my question? Has one party to the Agreement the right to vary its terms without the assent of the other party?
When one party to the Agreement fails to keep its obligations under the Agreement, and works consistently against the Agreement, then the other party is entitled to protect itself. May I add a gentle protest against the habit of the hon. and gallant Member of implying that Ministers are deliberately evading the questions he puts to them?
May I ask, Mr. Speaker, whether a Private Member has not a right to appeal to you for protection against imputations like that?
I saw no reason to interfere with the hon. and gallant Gentleman's question.
Arrests
asked the Secretary of State for Foreign Affairs whether he will state the number of persons who, during the past six months, have been arrested and charged with political offences by the British authorities in the Sudan; what number of persons have been expelled from the Sudan, and the nature of their offences; whether any of these persons were State officials; were they allowed any opportunity to appear before a Court of discipline or law; and will he publish the names of all officials expelled or in prison, and the nature of the offences charged against them?
I am unable at such short notice to answer this question. If the hon. Member will repeat it at a later date, I will endeavour to obtain the information.
Questions
Naval Disarmament
asked the Secretary of State for Foreign Affairs whether he has any information with regard to a new disarmament con- ference, to be summoned by the President of the United States of America, to discuss further limitations of naval armaments; and whether His Majesty's Government intends to make any proposals or suggestions for such a conference?
The matter has been informally mentioned in conversation with the Ambassador of the United States of America, and is at present under consideration.
Will the right hon. Gentleman answer the second part of the question, are we prepared to take any steps in the matter?
I beg the hon. and gallant Gentleman to allow me to confine my answer for the present to what I have just said. I really think no useful purpose would be served by adding to it.
Will the right hon. Gentleman kindly inform me when I may put a further question on this very important matter of disarmament?
I will make a note of the hon. and gallant Gentleman's question and communicate with him if I think I can usefully make any further statement.
League of Nations (Manufacture of Armaments)
asked the Secretary of State for Foreign Affairs what is the scope of the League of Nations Conference on the question of the manufacture of armaments on which the Parliamentary Under-Secretary of State for Foreign Affairs has been appointed to serve; and what attitude he has been in. strutted to adopt at that Conference?
The purpose of the meeting is to consider the possible basis for a full international discussion of the question of the private manufacture of arms and munitions of war. My right hon. Friend has fully informed himself of the views of the various Government Departments concerned in this question and will be able to give suitable expression to them, but his action must he largely guided by the course of the discussion and the attitude of other nations.
Turkey (Armenian Prisoners)
asked the Secretary of State for Foreign Affairs whether he can state the number of Armenian women and children who are still prisoners in the hands of the Turks; and what measures are being taken by the Government, in consultation with other Powers, under the auspices of the League of Nations, for the rescue and resettlement of these people?
The answer to the first part of the question is in the negative. As regards the second part of the question, I would refer the hon. Member to the replies which were given by my predecessor to the Gentleman who at that time represented North Hackney (Mr. John Harris) and Dewsbury (Mr. Edmund Harvey) on 30th June and 14th July last, of which I am sending him copies, and I have nothing to add to them.
Is it not possible for the British Government to inaugurate some scheme for the relief of these people by means of a financial grant combined with other nations through the League of Nations?
No, I am afraid not, though, of course, what the League of Nations is prepared or able to do I cannot answer for.
Turkish Tribute Loan Bonds
asked the Secretary of State for Foreign Affairs whether he is aware that £1,000,000 worth of Turkish Tribute Loan Bonds are held by Europeans resident in Egypt; and whether, in view of this circumstance, he will accelerate negotiations now proceeding with the Egyptian Government on the subject?
I understand that a quantity of the scrip of these loans is held by Europeans resident in Egypt. As regards the second part of the question, the position remains as described in the reply I gave to the hon. Member for Ilford on the 10th instant.
Is there any truth in the report in the "Times" to-day that a writ has been issued against the Egyptian Government?
I do not know. I have had no information to that effect.
Will my right hon. Friend make inquiries?
If my hon. Friend puts down another question, I will make inquiries.
Is my right hon. Friend aware that many of the investors in this loan are very poor people?
Royal Navy
Marriage Allowance
asked the First Lord of the Admiralty whether he has arrived at any decision relating to marriage allowance to be granted to naval officers?
asked the Parliamentary Secretary to the Admiralty if he is now able to make a statement on the subject of marriage allowance?
asked the Parliamentary Secretary to the Admiralty whether the Report of the Committee on Marriage Allowance for Naval Officers is ready; and, if so, when its publication can be expected?
The question of naval officer's marriage allowance is being referred to a Co-ordinating Committee.
How many years has this question been under consideration?
I have been responsible only for a few months.
Leave Facilities
asked the First Lord of the Admiralty whether he is aware of the expense to which seamen who live in parts of the country far distant from naval headquarters are put when they go for leave at Christmas or other times in the year; and whether he is prepared to consider proposals for reducing this hardship?
It is recognised that seamen who live in parts of the country distant from naval ports are put to considerable expense when they go on leave, but I regret that in present circumstances I can hold out no hope that the Admiralty will be able to contribute to the cost. Under arrangements with the railway companies seamen proceeding on leave can obtain return tickets at one and a third of the single fare.
Singapore Base
asked the First Lord of the Admiralty whether work has been recommended on the proposed new naval dockyard and base at Singapore; what progress it is expected will be made this year; and what sum is expected to be spent in preliminary and actual work on the new base during the present financial year?
The answer to the first part of the question is in the negative. If the latter part refers to the financial year 1925–26, I would ask the hon. and gallant Member to wait until the Navy Estimates are before the House.
Shipbuilding Programme
asked the First Lord of the Admiralty whether any Committee has been set up, or is to be set up, to inquire into our present warship strength and shipbuilding programme; and, if so, of whom the Committee will consist?
His Majesty's Government have decided that it is necessary to investigate further the question of replacement.
Can the right hon. Gentleman say whether a Committee will be set up and of whom it will consist?
No, I cannot give that information.
Discipline
asked the First Lord of the Admiralty whether he will take steps to bring to the notice of commanding officers of His Majesty's ships the desirability of exercising the provisions of the King's Regulations and Admiralty Instructions, Article 793, Clause 2, in cases where mitigating circumstances can be proved, such as trains held up by fog or other causes, etc.?
Mitigating circumstances such as those mentioned by my hon. Friend are always taken into consideration by commanding officers, and it is not considered necessary to issue any special order to this effect. Ample means exist for anyone who may feel he has been unjustly treated in this or in any other respect to represent his case through the usual service channels.
Will my hon. Friend allow me to bring instances to his notice, and will he act on them if he is persuaded that what he has just said is not absolutely accurate?
Yes, Sir.
Flogging
asked the First Lord of the Admiralty whether existing Regulations permit of flogging or birching of ratings of the Navy over 18 years of age; and, if so, will he state the number of such ratings who were flogged or birched for the two years ended 31st December, 1924?
The answer to the first part of the question is in the negative, and the second part does not therefore arise.
In view of the fact that there appears to be no use in this Regulation, will the hon. Gentleman see that it is dispensed with?
I am not prepared to give that undertaking.
Submarine Service
asked the First Lord of the Admiralty whether, in view of a shortage of chief and engine-room artificers in the submarine service, due to lack of volunteers, he will consider the improvement of pay and conditions of service for the purpose of ensuring a sufficient number of volunteers before pressing unwilling men into that service?
The submarines are an integral part of His Majesty s Navy and all ranks and ratings are, and always have been, liable for service in them. Volunteers have been, and still are, taken first. The chief and engine-room artificers are no more affected than everyone else. The Admiralty have always in view the improvement of conditions of service in these vessels, but I am not prepared to recommend an increase in the rate of extra pay now given for such service.
Seeing that we are told these men have always been liable, why the recent Order telling them they are now liable?
I think that had better be put down as a separate question. There has never been any doubt as to their being liable.
Pension Payers (Attestation)
asked the First Lord of the Admiralty whether he is aware that many pensioned chief and engine-room artificers are prejudiced in civil employment through having to get their pension papers attested; and if he will consider whether arrangements can be made that, on special application, the pensioner may be permitted to have his pension paid from time to time to his bankers without the present necessary attestation?
I do not understand how the pensioners are prejudiced, as suggested in the question, but I would draw the attention of the hon. Member to the provisions of the Annual Appropriation Act, under which grants may not be made in respect of Navy or other non-effective services until a declaration in a prescribed form has been made before certain approved attestors, and I regret that no exception can be made to this statutory obligation.
is it not a fact that the officers sign their own papers, and pass them on to their bankers?
I am not aware of that.
Divine Service
asked the First Lord of the Admiralty whether he is aware of a strong desire that attendance at divine service on Sundays in the Navy should he voluntary; and whether the Board can see its way to give effect to this desire?
I am not aware that this desire is at all general, and I am not prepared to make any alteration in the present Regulations.
Is the right hon. Gentleman aware that this desire was expressed in a recent welfare request as being the opinion of the Navy?
Cruisers (Building Slips)
asked the First Lord of the Admiralty how many slips, suitable for building cruisers of the most recent type, are there in each of His Majesty's Dockyards, respectively; how many of these are occupied with essential work which will take some considerable time to complete; and, if there are none at the moment available, when will such a slip be available?
There is a slip at present suitable for building cruisers of the most recent type at Chatham, Portsmouth and Devonport. These slips are now occupied, but all will be available towards the end of 1925.
Good Conduct Grant
asked the Parliamentary Secretary to the Admiralty whether the grant of £20 to holders of the good conduct medal, sanctioned as a result of the Report of the Jerram Committee, could be extended so as to include all such holders, and not merely those who were actually serving on the 1st May, 1919?
The improvement in naval pay and allowances sanctioned as a result of the recommendations of the Jerram Committee were retrospective generally only as regards men actually serving on the 1st May, 1919, and I regret that no exception to this rule can be made.
Can the hon. Gentleman say why any discrimination is being made, and why this particular date has been fixed?
Some date had to be fixed, and I regret that it cannot be reconsidered now.
Admiralty (Gunnery Department.)
asked the Parliamentary Secretary to the Admiralty if he is aware that a retired lieutenant has been appointed to the gunnery department of the Admiralty replacing an officer on the active list; whether, in view of the limited appointments of this nature open to lieutenants promoted from the ranks, he will consider the retention of this appointment for officers on the active list; whether he will say how this officer was selected; who made the selection; whether the vacancy was advertised; how many retired lieutenants applied; and if he can give the pay of the officer on the active list and the pay of the retired officer who succeeded him?
As the reply is somewhat long I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.
Is the retired pay of this officer included in his consolidated allowance, or not, and, if so, why is a retired non-commissioned officer's pension granted him in peace time when it is taken away in war?
The reply is as follows:
A retired lieutenant was recently appointed to the post authorised for a warrant officer or promoted warrant officer for storekeeping and miscellaneous duties in the Naval Ordnance Inspection Depot at Woolwich, in succession to an officer on the Active List. Retired officers are equally eligible with active service officers for employment in the Naval Ordnance Inspection Department. The decision to appoint a retired officer to this post was made on account of the desirability of securing continuity of service in the post. The officer appointed was selected by the Board of Admiralty. The vacancy was not advertised. No retired lieutenant applied specifically for the post referred to. The pay of the officer now filling the post is £576 per annum, inclusive. The pay of his predecessor amounted to £630 7s. 6d. per annum.
Questions
Piracy (Chinese Waters)
asked the First Lord of the Admiralty whether better provision will be made by the Navy for protecting British trade in Chinese waters against piracy?
Since piratical attacks have become frequent a gunboat in reserve at Hong Kong has been placed in full commission and is now performing patrol duties. Four launches, provided by the Hong Kong Government, have also been manned by naval ratings and are regularly escorting convoys. The question of the necessity for additional naval protection is under consideration.
Trade Disputes (Working Days Lost)
asked the Minister of Labour the number of working days lost through trade disputes for the year 1924 in this country, France, Germany, and the United States of America, respectively?
The number of working days directly lost through trade disputes in Great Britain and Northern Ireland in 1924 at the establishments where the disputes occurred was approximately 8,300,000. Figures are not available as to the number of days lost, in consequence of the disputes, at other establishments. I regret that I cannot supply my hon. Friend with the corresponding figures for France, Germany and the United States, none of these countries having yet issued a report on trade disputes for the year 1924.
If we cannot get these figures from foreign countries, why are we paying a grant each year to the International Labour Bureau?
Can the right hon. Gentleman say whether the figures in his Department show that the number of days lost through labour disputes last year, under the late Government, were fewer than in any year since the close of the War?
The hon. Member has no doubt made inquiries on his own account. If he wishes further information, perhaps he will put down a question.
Is the right hon. Gentleman aware that this number is about half the total lost in a Bank Holiday in one year?
Will the right hon. Gentleman make inquiries as to the number of working days lost by the classes who frequent Monte Carlo and other places in the Riviera?
Unemployment
Young Persons
asked the Minister of Labour the number of young persons under 20 years of age who are at present out of employment; the number of these who are in receipt of unemployment insurance benefit; and the number who, while genuinely seeking work, have never been able to find employment?
Statistics regarding the numbers bf persons under 20 years of age who are registered as unemployed are not available, but it is possible to give figures relating to juveniles between 14 and 18 years of age. At 9th February, 1925, there were 35,880 boys and 34,480 girls below the age of 18 registered as unemployed in Great Britain, and of these 17,762 boys and 13,188 girls were claiming unemployment benefit. No statistics are available as to, the number of juveniles who, while genuinely seeking work, have never been able to find employment.
Can the right hon. Gentleman say whether his Department has issued special instructions to Unemployment Committees who deal with the cases of juveniles who are alleged to be genuinely seeking work and are unemployed?
Will the right hon. Gentleman get into touch with the education authorities, and will our Government be a little more progressive than the late Government?
When requests are made, will hon. Members put down further questions? In reply to the hon. Member for the Sutton Division (Viscountess Astor) 1 may point out that unemployment work in regard to juveniles, in a very large proportion of cases, is carried on by and with the co-operation of the local education authorities.
Is the right hon. Gentleman aware that there are certain industries, such as the jute industry, where 95 per cent. of the boys are discharged upon reaching the age of 18, and cannot possibly find work in their own district?
Raise the school age.
Rota Committees
asked the Minister of Labour whether he is aware of the criticisms which are being made with regard to the way in which the rota committees deal with the cases of men and women whom they do not consider to be honestly endeavouring to obtain work; and whether, in view of the importance of their functions, he can give any statistics showing the number of times they have for this reason refused applications for the unemployment donation?
I am aware of these criticisms but have not found that there is any substantial foundation for them. The rota committees have a difficult task to perform, and in the nature of things it is inevitable, I am afraid, that their recommendations cannot be pleasing to everyone; but all my information goes to show that the committees do their work impartially and efficiently. We are constantly endeavouring in co-operation with them to ensure as accurate discrimination as possible in judging the claims of applicants. With regard to the last part of the question, I would refer my hon. Friend to the reply, of which I am sending him a copy, given on Monday last to the hon. Member for Bow and Bromley.
Can the right hon. Gentleman say whether it is the rule that a rota committee should notify any recipients of unemployment pay to attend before the committee, before they are struck off the roll?
Will the right hon. Gentleman consider laying down some standard of what constitutes "genuine," for the guidance of the, rota committee, so that they can get some kind of uniform basis for their decisions?
That is a question hardly within the confines of a Parliamentary answer. There is another question on the Paper to-day. The whole matter had better be raised in debate, because it is difficult to do justice to it in reply to an ordinary question.
Will the right hon. Gentleman say whether or not persons should be notified to attend the rota committee before they are struck off the roll?
I will consider the hon. Member's question. As far as I remember the instructions, they are very complicated. Subject to correction, I think benefit is given for a definite length of time, and unless further application is made, it may cease at the end of that time, as, frequently, benefit is allowed for a fixed number of weeks.
Dependants' Maintenance Benefit (Poor Law Institutions)
asked the Minister of Labour whether the unemployment insurance benefit to which the unemployed man is entitled in respect of his wife or children is paid to a board of guardians when the dependants in respect of whom the benefit is payable are maintained in a Poor Law institution; and, if not, whether the Government will consider the amendment of the present system to secure that the institution maintaining the dependants receives the benefit?
asked the Minister of Labour whether he will consider the desirability of introducing regulations whereby unemployment insurance benefits, to which an unemployed man is entitled in respect of his wife and/or children shall, if such dependants are maintained by a board of guardians in a Poor Law institution, be paid to such board of guardians by the local insurance committee during the period of chargeability?
Under existing legislation dependants' benefit is not payable to an unemployed man in respect of a wife or children who are being maintained by the guardians in a Poor Law institution, and obviously, therefore, could not be paid over to the guardians.
Is the right hon. Gentleman satisfied that the instructions such as are contained in his answer are really applied?
As far as I am aware, they are applied, and any alteration would, I believe, require legislation.
Return Fares (Applicants for Work)
asked the Minister of Labour under what circumstances is the return fare paid to an unemployed person who is sent by an Employment Exchange to work in another district and, on arrival, finds that there is no suitable vacancy or that the work offered is not paid at recognised standard rates?
Work-people are not sent by Employment Exchanges to take up work at a distance except with their consent and provided there is a definite vacancy for which the workman has been accepted by the employer or the Exchange has good reason to expect that the worker will be engaged on arrival. In the few instances where a workman so transferred by an Exchange fails on arrival to secure employment the Exchange manager is empowered to advance the cost of his return journey. The cost of the advance is not recovered in cases where the, workman is able to show that his failure to secure the employment for which he travelled was not duo to any fault on his part.
Will the right hon. Gentleman take good care that managers of Exchanges are made aware of the powers to that effect? There are large numbers of cases in which—[HON. MEMBERS: "Speech!"]
I will endeavour to take all the care that is possible, because it is a simple and just form of administration.
Will the right hon. Gentleman instruct the officials not to send men when the possibility of securing work is remote?
I am not sure whether that arises on the last question, but in the case of miners in one place going to another the officials of the Union are nearly always consulted, in order to see whether such a suggestion, when made, is justified. [HON. MEMBERS: "No!"]
Finding Work (Onus)
asked the Minister of Labour whether he is going to arrange that the Employment Exchanges shall find unemployed men for whatever work there is in their area, and abolish the present system of placing the onus upon the man?
The onus of showing that he is unable to obtain employment is placed upon the applicant for unemployment benefit by the Un- employment Insurance Acts, and I am afraid I canot see my way to ask Parliament to alter this requirement.
Is the Minister not going to give consideration to these men who are asked to go eight or nine miles to a place, and who, when they return, are told that they are being looked for? The result is that suspicion is then cast upon them that they are not looking for work at all, and should there not be some recognition of the fact that there is some honesty among these people?
That is a matter which cannot now be debated.
Introduction Cards
asked the Minister of Labour whether his attention has been called to the case of an unemployed man, Mr. Thomas Reid, 2, Buccleuch Place, Edinburgh, who recently obtained work at Seafield but was told that he must get an introduction ticket from Room 16 of the Bureau; that he was then refused a ticket and was told to inform the foreman concerned that when men were wanted the Bureau would send them on; and whether steps are to be taken to ensure in such cases the right to work without interference from the State?
I have been unable to identify the case to which the hon. Member refers. The work mentioned is, however, relief work assisted by a State grant, and it would have been quite irregular for the Exchange to have issued a card of introduction in the circumstances described. It is one of the conditions of State grants that the labour required should be drawn from the Employment Exchange or parish council. This ensures that the work relieves men who are in fact in need of relief, and that labour is not brought in from other areas to the detriment of the residents in the area which is incurring the cost of the scheme. The men sent from the Exchange are usually selected by the local employment committee on review of their circumstance and their industrial suitability, and are sent to the work with an introduction card from the Exchange.
Is it not a fact that this particular man who was resident in Edinburgh did obtain a job at Seafield, and that he was not allowed to take up that job after applying to the Employment Exchange? Will the right hon. Gentleman take steps to bring before his colleagues and the Cabinet the necessity of restoring to all men in the country the right to work?
Where a particular locality is responsible for relief work being set up, of which it bears a large proportion of the cost, I do not propose to suggest to my colleagues that, in connection with work in that locality, the people resident in that locality should not have the preference.
Govan Docics (Unemployment Benefit)
asked the Minister of Labour whether he is aware that an instruction was issued by the Ministry to the local Employment Exchanges for the summoning of unemployed men over 60 years of age before rota committees, which instruction contained a suggestion for the stopping of benefit to those men; whether he can state who authorised the issue of the instruction; and whether he will place a copy in the Library, or circulate copies to the Members of this House?
No such instruction has been issued.
Why is a man over 65 years of age going to be turned down by the exchange in Govan, and why out of 95 for the whole of Glasgow are 66 men who were over 65 to be turned down in Govan?
That is a matter that has been taken up on their own initiative, so far as I know, by the Govan exchange. So far as the general instructions, covering the cases of applicants are concerned, I could give a copy to the bon. Member if he wishes, and there is one in the Library of the House of Commons at the moment, I think that its number is 82.2.
That is one of the points which I have in mind. I have asked that the instructions should be available to Members in the Library.
They are in the Library.
Will the right hon. Gentleman draw the attention of the Glasgow exchanges to the great dissatisfaction existing there with regard to the large number of men over 65 years of age, who are being refused further benefit by the exchanges in Glasgow on the ground that they may not be any longer employed in their own occupations?
The exchanges in Glasgow and Govan are aware of the general instructions—there are no special ones—under which they are supposed to work, and there is no reason to suppose that they need any special reminder of what they ought to do.
further asked the Minister of Labour whether he has received any complaints regarding the manner in which the firm of Shanks and McEwan, contractors of the Shildhall Docks, Govan, is treating the men sent to it from the Govan Employment Exchange; whether he is aware that this firm is asking the exchange for men, and after employing the men for two or three days, dismisses them as unsuitable, thereby causing the men to lose unemployment benefit; whether he is aware that the rate paid by this firm is 11¾d per hour as compared with 1s. 1d. per hour paid by other contractors on other relief schemes; and, whether, in view of the many complaints made against this firm, he will, in the interest of the Govan Employment Exchange and the men selected by the exchange for this firm, cause an investigation to be made?
I am informed that difficulties have occurred in connection with the employment of men on this work, but that unemployment benefit has not been disallowed where men have been discharged as unsuitable. I have no authority to intervene with regard to the wages paid, but so far as I am aware there is no case of a rate of 1s. 1d. per hour being paid by other contractors executing relief works in the Govan area. Local officers of the Ministry are in touch with the local authority and the contractors, with a view to removing the difficulties referred to, and I do not think a special investigation would serve a useful purpose at the moment.
Is the right hon. Gentleman aware that while the rate of Is. ld. per hour is paid by Messrs. McAlpine in connection with the new road which is being constructed alongside the Govan Docks, inside the docks over the railings the rate of 11¾d. per hour is being paid by these other contractors? Is he further aware that men in Govan who were employed by Messrs. Shanks and McEwan and were dismissed have lost the unemployment benefit from the exchange because they have been notified as unsuitable?
That is a question which should be put on the Paper.
The Minister in his reply informed the House that this rate which is being paid by the firm of contractors in this case was the rate practically operative in Govan. I have pointed out in a Supplementary question that that is the only case of the payment of that rate, and that other contractors for similar work are paying higher rates. I am asking the right hon. Gentleman further, in view of that, whether he is not prepared to go on with the investigations?
If the hon. endeavouring to obtain this information, which goes to show that what I have received is not correct, I will look into it.
Women (Domestic Service)
asked the Minister of Labour the number of female applicants whose claims for unemployment pay have been rejected in the Liverpool area during the months of August, September, October, November, and December, 1924, and January, 1925, respectively, on the grounds that they declined domestic service?
I am endeavouring to obtain this information, and will communicate it to the hon. Member as soon as possible.
Applicants Seeking Work
asked the Minister of Labour if he is aware of the difficulty experienced by many of the applicants for unemployment benefit of obtaining evidence that they have been genuinely seeking for work; and whether he will consider the advisability of setting up a system of cards, to be issued by the Employment Exchanges, whereby those seeking employment may have them officially stamped or signed at the various works at which they may call?
The suggestion made by the hon. Member has already been considered. It was not thought advisable to adopt it, because of the danger that the procedure would develop into a mere formality. The essence of the matter is that applicants should convince the committees of the genuineness of their search for work and I know no ground for supposing that the committees are unreasonable in their requirements. If, however, the system adumbrated by the hon. Member is different from those already considered I shall be very glad to have it carefully examined if he will discuss it with the Department.
Would the right hon. Gentleman consider other methods in respect of this matter, if those suggested by my hon. Friend are not completely adaptable?
Rhyl
asked the Minister of Labour whether he is aware that applicants for unemployment relief at Rhyl are compelled to wait in queues in the open street for long periods before payment is made to them; and whether he will take steps to ensure for them whilst waiting privacy and shelter from the weather?
I am informed that early in January some 20 or 30 men waited outside the branch Employment Office premises in Rhyl on the weekly pay day, but in order to guard against the possibility of a recurrence a timing system was adopted, and no waiting in queues has occurred since or is likely in future.
Will the right hon. Gentleman consider the advisability of paying unemployed people on systematic short time at the firms where they have been employed, if the firm will give facilities for paying the money?
Contributions
asked the Minister of Labour if he can state, separately, the amount received from unemployment insurance from the State, the workers, and the employers for the year ending 31st December, 1924?
During the year ended 31st December, 1924, the contributions to the Unemployment Fund were approximately as follow:
asked the Minister of Labour whether, before coming to the decision with respect to applications for unemployment benefit, in which the statutory requirement regarding the number of contributions paid may be waived, due consideration was given to the long spell of bad trade and to the number of work-people who will be affected; whether any estimate has been made of the number who will be affected; and whether he can state his reasons for making such decision?
All the factors mentioned by the hon. Member were most carefully considered before the decision was reached, so as to avoid hardship to any deserving applicants for benefit, but the statistics do not admit of a precise estimate of the number likely to be affected such as the hon. Member asks for. Beyond what I have already said in my answer to the hon. Member for Bury on 11th February, it is impossible to state the reasons for my decision within the compass of an answer to a question, but I understand that there will be an early opportunity for discussing the whole matter on the occasion of the Vote on Account, and I shall be very willing then to state the reasons fully.
Will the right hon. Gentleman give instructions that this is not to be carried out until the discussion takes place?
I am afraid that they are actually being carried out at the present time, and that, therefore, I cannot state what the hon. Member wishes.
Men Over Forty
asked the Minister cf. Labour whether he has any information of employers refusing to find work for any men over the age of 40; and, if so, will he consider the advisability of publishing the names of such employers, or of taking such other steps as will prevent the continuance of such a practice?
I have no information such as that suggested. An analysis, however, of a sample number of unemployment figures of last November goes to show that the percentage of unemployment among men whose age does not much exceed 40 is little, if at all, above the average figure for adult male unemployment, but that it is distinctly above the average in the case of men over 60. This was probably the case also before the War, but it is possible that it has been somewhat accentuated by the trade depression. Looking at all the circumstances of the case, I do not think that the adoption of the suggestion of the hon. Member is advisable.
If information can be given of certain firms doing this, will the right hon. Gentleman take steps to deal with the matter?
I cannot give any general undertaking, because the circumstances in different cases vary so much that it would be impossible, in justice, to apply any general rule.
Can my right hon. Friend give any information as to the number of men over 60 who are unemployed?
Perhaps my hon. and gallant Friend will put that question on the Paper?
Insurance Fund (Indebtedness)
asked the Minister of Labour what is the present weekly income and expenditure of the Unemployment Insurance; and what is the present indebtedness of the Fund?
The present weekly income of the Unemployment Fund is about £944,000, and the weekly expenditure under all heads, except compensation for abolition of refunds at 60, is about £1,040,000. The sums paid in compensation have averaged about £100,000 weekly in the last, eight weeks, but, as the hon. Member will appreciate, this is non-recurring expenditure. The indebtedness of the Fund on the 14th February, 1925, was £6,240,000.
For how long has the indebtedness of the Fund been increasing?
Speaking from memory, I would say that it has been increasing for about the last five or six months.
Has the indebtedness of the Fund not been decreased by several millions during the last year, or during the last year or two?
I think not—
Oh!
The hon. Member first said "last year," and then he added, "the last year or two." If he will put down a question asking precisely for the information that he wants I will endeavour to supply it.
Building Trade
asked the Minister of Labour the present number of unemployed persons in the building trade and the weekly amount of unemployment benefit paid to them?
At 26th January the number of persons in the building trades registered as unemployed at Employment Exchanges in Great Britain was 91,818. Separate figures showing the amount of benefit paid in particular trades are not available, but assuming that these workpeople drew the same average amount per head as unemployed workpeople generally, the weekly amount of unemployment benefit paid to them is estimated to be betwen £70,000 and £75,000.
Can my right hon. Friend take any step with the leaders of the trade unions to get these men employed in the building trade?
Sugar-Refining Industry
asked the Minister of Labour whether he will state the number of men now out of employment in the sugar-refining industry in this country?
I regret that separate statistics are not available in respect of sugar-refining.
Miners
asked the Minister of Labour the number of miners unemployed in each district in the months of February, 1924, and February, 1925; and the number of miners who have applied for unemployed insurance benefit and been refused, or whose benefit has been stopped during the last six months?
As the answer contains a number of figures I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.
Following is the answer:
The numbers of coal miners registered as unemployed at 28th January, 1924, and 26th January, 1925, in each of the administrative divisions of the Ministry were as follows:
28th Jan., 26th Jan., 1924. 1925. South Eastern … 359 527 South Western … 1,155 1,808 Midlands … 4,889 7,333 North Eastern … 10,449 29,918 North Western … 8,327 9,223 Scotland … 5,435 13,300 Wales … 25,624 33,901 Great Britain … 56,238 96,010
No information in respect of applications for and refusals of unemployment benefit is available in respect of separate industries.
Compensation Applications
asked the Minister of Labour if he is aware that his Department are using a printed acknowledgment form (U.I. 560) in reply to quite simple applications, on which it states that the Department cannot undertake to give a decision on the point raised, or answer any inquiries, before three months have elapsed; whether he is aware that such a reply gives an impression of slackness in dealing with cases or correspondence; and if he will take steps to expedite their handling and to withdraw this circular?
The statement to which the hon. Member refers is printed at the foot of the acknowledgment form which is given on receipt of an application for compensation under Section 9 of the Unemployment insurance Act of August last. It was estimated that over a million applications would be received in a short space of time, and, in fact, nearly 600,000 have so far been received. To deal very rapidly with all these repayments, each one of which often necessitates fairly intricate calculations, would require a very large temporary addition to the staff, which could not, at the outset, be efficient and which would before long have to be again discharged. Obviously, therefore, a, balance had to be reached between the two desirabilities of dealing with claims at a reasonable speed and of economy in working. The present arrangement is the result, and I think it is without question the most businesslike. It is equally clear that the best way of handling the matter is to deal with the applications in order of receipt and to refuse to deal specially with any of them out of turn. As was announced when the Bill was before the House last summer, it was anticipated that it would take any particular application about three months to be finally computed, and in order to obviate misapprehension and unnecessary correspondence the notice in question with regard to this period of three months was printed on the acknowledgment form. I may add that, out of nearly 600,000 applications received to date, 400,000 have been paid or otherwise disposed of.
Benefit (Unmarried Mothers)
asked the Minister of Labour whether he can see his way to extend dependants' unemployment benefit in the case of unmarried mothers wholly or mainly maintained by a son whose father has deserted his mother, and of whom all trace has been lost?
The extension of benefit which the hon. and gallant Member has in mind would require fresh legislation. I cannot give any pledge in the matter, but I have noted the point for consideration if, and when, it becomes necessary to propose fresh legislation in connection with Unemployment Insurance.
Local Authorities (Grants)
asked the Minister of Labour whether, in view of the very heavy burden placed on local authorities by the terms of the grants made by the Unemployment Grants Committee, he can see his way to extend the said grants to the whole period of such loan instead of to only one-half the period as at present?
This point was brought before the Minister of Health and myself recently by the Association of Municipal Corporations. It was considered very carefully, but as a representative deputation of the association were informed, I am afraid it is not possible to accede to the request.
Questions
Ex-Service Men (Civil Service)
asked the Prime Minister whether he has seen the letter, dated 20th January last, from the Treasury to the chairman of the staff side of the Whitley Council, referring to the final Report of the Southborough Committee; and whether he proposes to carry out the promise made in the letter?
Yes, Sir. I have seen the letter referred to which expresses the intention of the Government to give effect to the agreement subject to discussion in the House of Commons should the House so desire. I hope, however, that the announcement made yesterday, that if there is a general desire for discussion of this subject an opportunity will be afforded if arrangements are made through the usual channels in the course of the Debate on the Vote on Account for the Civil Services and Revenue Departments, or, failing this, by the Debate on the Consolidated Fund Bill, will meet the wishes of the hon. Member.
Referring to the question to which I have been referred, was the agreement with certain ex-service men's associations made during the General Election, and is it fair to prejudice the discussion which is going cu now by referring to the pledge to which the Government are bound without affording the House a full opportunity for discussion?
The House will have an opportunity for discussion, and I do not see the point of my hon. Friend's remarks.
In the answer which was given yesterday by the right hon. Gentleman there is a statement to the effect that instructions were issued in October, and that those instructions stand. What I now ask is, if those instructions were actually in a letter from the right hon. Gentleman himself during the Election, and were an Election promise, and are they to be over-ridden now?
I am afraid that I cannot call to mind exactly what the hon. Gentleman refers to.
May I refer the right hon. Gentleman to the "Times" of the 26th October, in which he will find his letter?
Was the right hon. Gentleman Prime Minister on that date?
Would it not be fair to postpone the question of the agreement with that association until we have a full discussion in the House?
Certainly.
Rating of Machinery
asked the Prime Minister whether the Government intends to legislate on the lines of the Rating of Machinery Committee Report?
The Report is under consideration, but my right hon. Friend is not yet in a position to make any statement with regard to it.
National Industrial Conference
asked the Minister of Labour whether he will consider the calling of a national industrial conference this spring before the critical period in the coal, railway and engineering trades, with a national agreed policy on wages?
In each of the industries mentioned the appropriate machinery of negotiation is being utilised. There, is no reason to think that the negotiations which are in progress would be assisted by intervention on the lines indicated.
Industrial Councils
asked the Minister of Labour whether, in view of the almost unanimous support that was given to the Industrial Councils Bill on its Second Reading last year, he will consider bringing in a measure to give effect to the proposals contained therein?
I am receiving next month a deputation from the Association of Joint Industrial Councils on this subject, and would prefer to express no opinion at present. I may, however, remind the hon. and gallant Member that there is no consensus of opinion in favour of the principle of the Bill among employers' organisations or trade unions.
Cairo-Bagdad Air Mail
asked the Secretary of State for Air if any steps are being taken to remedy the deficiency in skilled personnel and to improve the quality of the aircraft on the Cairo-Bagdad air-mail route?
My Noble Friend's question is based, I think, on a misunderstanding. The primary object of the operation of the desert air route is not the carriage of mails but the affording of a training exercise to pilots and ground personnel of the Royal Air Force in long-distance flying under conditions similar to those of active service and the employment under the same conditions of various standard types of aircraft and engines. This object would not be attained if the operation of the route were restricted to a few highly specialised personnel or to any one particular typo of machine. I would add, however, that the delays due to engine or other failures of aircraft flying over the route have decreased progressively since it was initiated.
Members of Parliament (Contracts)
asked the Attorney-General whether, in view of the fact that by the Statute 22 Geo. III, c. 45, any person undertaking a contract with a Government Department shall be incapable of being elected to the House of Commons, or of sitting or voting therein, he proposes to introduce legislation to safeguard the Members of the House of Commons who have contracts with the Postmaster-General for the installation of telephone services in their residences or places of business?
If my hon. and gallant Friend examines the Statute, he will find that the disqualification is limited to contracts made for or on account of the Public Service. There is, therefore, no need for the legislation which he suggests.
Has the right hon. and learned Gentleman considered the case of people who have contracts with the Post Office, by which they permit the erection of telephone staffs on their houses, and receive payment therefor?
No, Sir.
Housing
Experimental Houses (Wembley)
asked the Minister of Health whether it is intended by his Department to erect a series of inexpensive houses at Wembley, built of different materials; if so, what materials are to be used; and how many houses it is proposed to erect?
It is not my right hon. Friend's intention to erect demonstration houses at Wembley, but the British, Empire Exhibition authorities are arranging for a display of various new methods of house construction. The whole of the arrangements are in the hands of the exhibition authorities.
Can the hon. Gentleman say what variety of house is going to be erected?
No, I cannot say.
Materials (Prices)
asked the Minister of Health whether his attention has been drawn to the decision of the National Light Castings Association to raise the price of housing materials manufactured by members of the association by 5 to 20 per cent.; and whether, in view of this action, he is prepared to reconsider the advisability of introducing legislation to regulate prices in housing materials?
I would refer the hon. Member to the answer given yesterday to a question on the subject put by the hon. Member for Central Hackney (Sir R. Gower).
As the Minister promised last week to consult his Building Prices Committee with regard to this matter, may we know what the result of the consultation has been?
My right hon. Friend said last week that he was going to ask the Committee to which the hon. Member refers to investigate this matter. That step is now being taken.
House Building (Weekly Lettings)
asked the Minister of Health the number of houses in course of erection by all bodies, private and municipal, for the purposes of letting at weekly rents at the end of January, 1925?
Information is not available showing the total number of houses in course of erection at the end of January for letting purposes. The number of houses under construction at that date in connection with State-assisted schemes was 54,006–23,641 by local authorities and 30,365 by private enterprise. Included in these figures are 4,674 houses which are being constructed under the Housing Act of 1924, and these, of course, must be available for letting purposes.
Building Operatives
asked the Minister of Health the number of building operatives who were employed on houses under construction for sale, and those under construction for letting at weekly rents, at the end of December, 1924?
Statistics are not available giving the information desired by the hon. Member.
Non-Parlour Houses (Wages Cost)
asked the Minister of Health the approximate difference in the wages cost of building a non-parlour house between January, 1924, and January, 1925?
I would refer the hon. Member to the answer which was given on Monday last to a question put by the hon. Member for West Islington (Mr. Montague).
Did not the hon. Gentleman state in reply to a question on this day week that the major portion of the increased cost, between January, 1424, and January, 1925, wits due to the increased wages, and is he not aware that the local authorities have intimated to his Department that the cost for wages is less than 10 per cent. of the increase
I did not say the major portion. I said a large portion. If the hon. Member will refer to the question which I answered on Monday he will see that on account of the increase of wages there has been an average increased cost on each house of £5.
Questions
Evictions, Clydebank
( by Private Notice ) asked the Secretary for Scotland whether he is aware of the serious state of public disorder that exists in Clydebank in consequence of evictions and arrests there yesterday; whether he is aware that this disorder might easily become a danger to life and property is he aware that the tenants agreed to be represented on the Commission which he has just appointed, in the belief that no evictions would take place until the Commission had reasonable time to report, and what steps is he prepared to take to prevent all prospects of a peaceful settlement being wrecked.
I understand that there were disturbances in Clydebank yesterday which led to arrests being made. There is always a risk that disorderly conduct may have consequences such as the hon. Mem- ber suggests, but I have no doubt that the authorities will take all necessary steps to guard against that contingency. As regards the last part of the question, I cannot speak as to the belief of the tenants, but it was my desire and hope that moderate courses might be adopted on both sides, until the Commission had completed its inquiry, and there had been reasonable opportunity of considering its report. As I have stated on previous occasions, I have no power to stop legal proceedings, but I take this opportunity of again expressing my desire that both parties should endeavour to secure a peaceful atmosphere while the inquiry is in progress.
On whose authority are police being sent into Clydebank to assist in these evictions? The police who are taking part in them are not the burgh police, and have not been invited by the burgh council; and may I ask the Secretary of Scotland, in view of the fact that he himself gave very satisfactory assurances when we saw him regarding the Clydebank evictions, upon whose authority these outside police are being drafted into Clydebank, since the local council have not invited them there?
I do not think the Minister has any control in a matter of that kind.
On a point of Order, Sir. The Secretary for Scotland controls the police in Scotland.
This is a matter for the Chief Constable of the district concerned. He has to take the steps which he considers necessary in order to carry out his duties.
As the Chief Constable is to a certain extent under the control of the local council, I am asking who makes the application to the Secretary for Scotland in a matter of this kind, and whether the Secretary for Scotland, without consulting the local authority, sends police down or instructs, through his agents, the police to go there?
The ultimate authority, of course, rests with the Secretary for Scotland, but the Chief Constable is primarily responsible, either himself, or under the direction of the Sheriff of the district, and it is only when they finally apply to me that I come into the matter, and they have not so applied.
May I ask the right hon. Gentleman, in view of the fact that when we met him in Edinburgh and asked that some steps should be taken to stop evictions, and certain assurances were given that every effort would be made to stop them while the Commission was sitting, and in view of this new outrage by the factors, whether he is not aware that this will seriously prejudice the Commission sitting at all, and what steps, if any, he is preparing to take to stop the evictions in order to secure that the Commission will sit and adjudicate?
The hon. Member and those bon. Members who met me in Edinburgh are well aware that I gave no assurances such as he suggests, and that it is not, as I have already stated in answer to this question, within my province to give any such assurances.
The right hon. Gentleman led us to believe that, while he had no legal power to stop the course of the law, the factors, and he, for his part, wished to see no evictions taking place. In view of the fact that the factors have rot carried out that understanding, and that it was stated to him that no tenants' representative would go on while evictions were taking place, what action is he taking to secure that the Commission will meet and that it will meet in a peaceful atmosphere?
May I suggest that the Minister has made an important statement to-day, which may have a good effect on this unhappy matter?
Seeing that the whole disturbance rests on the decisions given by the Sheriff of the county in which these evictions are taking place, may ask whether the right hon. Gentleman has consulted with his friend the Lord Advocate as to what is going to be done, whether it is going to be an observance of the decisions of the Courts of the county where this is taking place, or whether he will take the matter into his own hands and say that the decisions of these Courts are not to be carried out, and that evictions are still to take place?
Notice must be given of that question.
Do I understand the right hon. Gentleman to say that, in open defiance of the wishes of the local magistrates, and ignoring his previous appeals for peace, the Chief Constable is definitely drafting in an additional police force there, and exciting the feelings of the population, in defiance of the local magistracy and of his own expressed wish?
I must have notice of that question as to the definite fact.
I would like to ask the Secretary for Scotland if he will keep in touch with this matter in a manner he has never done before, the reason being—
Speech!
I want you, Mr. Speaker, to protect me from these interruptions.
I will always protect the hon. Member, if he will give me a chance by addressing himself only to me, and not attending to other parts of the House.
I wish to draw the attention of the Secretary for Scotland that there are a few people in Clyde-bank—
Is it a question?
That is the question. Is the right hon. Gentleman aware that there are a certain number of people in Clydebank who are unable to pay the rent? [An HON. MEMBER: "And unwilling!"]
That does not now arise. Ballot for Notices of Motion.
I wish to move the Adjournment of the House. [HON. MEMBERS: "Order!"]
I have already called the Ballot. The hon. Member has not tendered any Motion in writing to me, as in that case he ought to have done. I have already called the Ballot.
On a point of Order. Is it always the custom for a Member, when he has put a private notice question, and various other questions come from it, to hand over to you, Mr. Speaker, notice that he intends to move the Adjournment? Is it not sometimes the custom in this House, or has it not sometimes happened, that the time has been too short for a Member to have intimated to Mr. Speaker that the replies given were so unsatisfactory as to necessitate him trying to bring the matter forward on a Motion for the Adjournment?
I have allowed an unusual time for the Supplementary Questions.
Notices of Motion:
Food Commission
I beg to give notice that, on this day fortnight, I shall call attention to the proceedings of the Food Commission, and move a Resolution.
Legal Aid to Poor
I beg to give notice that, on this day fortnight., I shall call attention to the question of providing legal aid to the poor, and move a Resolution.
Crown Colonies (Resources)
I beg to give notice that, on this day fortnight, I shall call attention to the resources of the Crown Colonies, and move a Resolution.
International Labour Convention
I beg to give notice that, on this day fortnight, I shall call attention to the International Labour Convention, and move a Resolution.
Theatrical Employers Registration
I beg to Move: member many features of the Bill, since they 'were introduced by my right hon. Friend the Member for the Deptford Division (Mr. Bowerman) in 1924, and, in passing, I would like to pay a tribute to his efforts in trying to do away with what is known as bogus management. He was the pioneer in the movement, and very great credit is due to him, and on behalf of the theatrical industry I thank him. It is with his goodwill and his promised support that I take upon myself his mantle for the time being. I have been asked to recommend this Bill to the House for its acceptance by the Society of West End Managers, the Theatrical Managers' Association, the Association of Touring Managers and the Entertainments Protection Association, while the Bill itself reflects the wishes of the employés, and, as an additional proof, it is supported by the Actors' Association, the Variety Artistes' Federation, indeed the Bill was originally prepared by the Entertainment National Industrial Council and has undergone only some slight modifications to meet the views of all concerned in the industry, which I can assure the House is now the case. They are all agreed. The Measure might also be taken as reflecting the views of those who are interested in social welfare. If the House agrees to give it a First Reading to-day and later on a Second Reading, there will be plenty of opportunity for the Bill to be examined in Committee with a view to further improvement, if necessary.
I would like, very briefly, to explain what the Bill proposes to do. It enforces the registration of theatrical employers by local authorities which now issue music and dancing licences; it arranges for the issue of certificates of registration with full publicity, and conviction for offences under the Bill may entail the cancellation of such certificate to carry on theatrical business at all. What are the offences? Defrauding performers of their wages, or salaries, or travelling expenses, or recurring failure to pay them. Any person who has no certificate but tries to trade, or who, if registered, does not give all information about himself or his whereabouts from time to time as specified can also be prosecuted, fined, or imprisoned. On the other hand, the Bill affords an opportunity for a man whose certificate has been cancelled to rehabilitate himself and to secure renewal under conditions which a Court of Summary Jurisdiction may impose. The Bill does no harm to existing holders of licences to produce plays, or cinema films, or to provide music and dancing. It does not interfere with charitable performances. It does no harm to anyone except the man whose business ought to be stopped—the bogus manager—and which will be stopped under this Bill if it becomes law. It aims solely at the bogus manager, the man who takes a troupe of artists round the country without the means to pay them, or who in many cases through partial payments renders young girls who arcs employed in great numbers in these companies liable to very great temptations. On grounds of morality, of honest treatment of the worker, and of fair consideration for the good employer the Bill has everything in its favour. If the House passes it this year, it will very possibly avert many evil practices. You find black sheep in every fold. The standard of employment and of morality among the vast number of theatrical employers is very great, but you get exceptions who exploit both labour and morality and thus blacken the fair name of a very honourable profession. I therefore make an appeal to the House to give its approval to this Bill and to provide, with the goodwill of all concerned except the offenders, some protection for the vast number of a community who very seldom need a helping, preventing hand, but who, when they do need it, need it very badly indeed.
Question put, and agreed to.
Bill ordered to be brought in by Sir Walter de Frece, Lieut.-Commander Ken-worthy, Mr. Bowerman, Colonel Woodcock, Mrs. Philipson, Colonel Day, Sir Nicholas Grattan Doyle and Mr. Rose
Theatrical Employers Registration Bill,
"to provide for the registration of employers of theatrical employés, and for purposes incidental thereto," presented accordingly, and read the First time; to be read a Second time upon Monday next, and to be printed. [Bill 69.]
Message from the Lords
Consolidation Bills, That they have appointed a Committee consisting of six Lords to join with a Committee of the Commons to consider of all Consolidation Bills in the present Session, and request the Commons to appoint an equal number of their Members to be joined with the said Lords.
Orders of the Day
British Sugar (Subsidy) Bill
Order for Second Reading read.
I beg to move, "That the Bill be now read a Second time."
The House will remember that we had some opportunity of discussion on the Financial Resolution a month or two ago, and on that Resolution this Bill which I now bring forward is based. A great deal has been said at various times about the establishment of the sugar beet industry in this country as a new industry. I do not know that all those who have so spoken have always realised to what extent it is a new industry in Europe. I do not wish to take the House over history beyond reminding it that approximately up to the time when the Napoleonic wars compelled, first of all, France, and subsequently other European countries, to consider the acute problem of a sugar shortage, this industry was, I think I am right in saying, completely non-existent in Europe; and it owed its origin to those wars. It is not uninteresting to observe that the late War has had a similar effect in turning our own energies in the same direction. It is also true to say that wherever the industry was started on the Continent the venture, so born of necessity, abundantly justified itself and justified itself on the same grounds on which I think this Bill will justify itself to the House from the point of view both of providing additional supplies of an essential commodity for the consumers, of being an ally of high-grade farming, and of furnishing a valuable field for agricultural and industrial employment. Those are certainly the grounds on which I wish to commend this Bill to the House.
I do not wish to labour, although at would be quite easy to do, the value that lies in this venture from the point of view of its advantages to farming. It is well known that sugar beet affords a pretty certain arable crop; it encourages deep ploughing; it is a very good fertiliser of the soil; and it does all that, not as some in ignorance have suggested by displacing, but by making more profitable and more economic the production of wheat. I have had some remarkable figures placed in my hand with regard to the effect that a crop of sugar beet has upon the following crop of wheat. I do not know whether I might read a few lines of a letter which came into my hands from a Crown tenant in Lincolnshire. It is always interesting to have direct personal testimony in these matters. I therefore take the liberty of reading a few lines of what this farmer says:
I think the farming community would agree that the minimum price fixed in the Bill, of 44s. per ton, should give a reason- able profit on the normal sugar content. As a matter of fact, the new contract terms that are being arranged between the factories and the farmers are a substantial advance on that figure. Therefore, so far as the first few years are concerned they are more favourable from the farmers' point of view. When we discussed this matter the other clay, a question was asked as to what assurance there was that the farmer would get a stable price when the guaranteed period of the subsidy ended. That, if I may say so, was a very relevant question. The answer is, that as these new contract terms show, it has not taken the factories long to realise what indeed is almost self-evident, that if they want to procure for themselves an adequate supply of beet they must be prepared to offer sufficient inducement to the farmers to grow it. The position at the end of the 10-year period will be that you will have these factories in which large sums of capital money have been sunk, and they will be. almost compelled to go on producing and carrying on their business, whereas the farmer, if he alone were concerned, would be able to switch over his beet cultivation to something else. Therefore he will have in his hands a strong and useful weapon for ensuring to himself fair treatment from the factories who must rely upon him for their raw materiel.
I do not think there is any difference of opinion in any quarter of the House that from the economic and social point of view far too great a proportion of our population is at present resident in, employed in, and dependent for their livelihood upon, the towns. The effect of that is, as has often been said, to make the social structure of the country rather top-heavy, and one of the principal features of these proposals is that in them we have a practical scheme of what I might call marrying the town and country. First of all, we induce industrial capital to be sunk on a large scale in agricultural production. We insure for the agricultural production the best scientific advice that it is in the power of that industrial capital to afford. Let me, in passing, emphasise how vital it will be for the success of this industry for both farmers and factories to co-operate in the production of beet to the highest possible sugar content. A difference of a small percentage of sugar content may easily make the difference between the prosperity and failure of the whole business, and I am very glad to see that the Farmers' Union, seed merchants, factories and the Royal Agricultural Society are all putting their heads together to study the question of the production of the best beet, and the production of the best and most suitable seed in this country for the crops on which the factories will, of course, depend.
Therefore, it is from that point of view, the point of view which, a good many years ago, was represented in "Sybil," under the title of "The Two Nations," that I look on this matter. In no sense was it thought that England is divided between industrial and agricultural. I regard this proposal as a great proposal to marry these two natural partners. Two figures, perhaps, will serve to give the House an idea of what I mean by saying that these proposals mean extra employment. It is estimated that on a farm where sugar beet is grown, an extra 10 men will be employed per 100 acres of-beet grown— i.e , on the agricultural side of it. On the factory side, it is estimated that something like 600 men will be found employment for the four winter months. An important effect will also be felt in the engineering industry in this country, and in various subsidiary allied industries, such as coal, limestone, railways, and so on. All those incidental effects ought to be brought into the balance sheet when we see what effect our proposals are going to have upon the well-being of the country.
The House will remember very well what was the proposal of the Coalition Government in the remission of Excise which these proposals succeed. The plan of remission of Excise really fails, if it is judged by the result, because though, in fact, it was pretty good Protection, it had no guarantee of permanence, and, of course, the late Chancellor of the Exchequer had better cause than anybody else to know, as he was responsible for taking away its permanent character by the reduction of the sugar duty. And, of course, any proposal that tied the hands of the Chancellor of the Exchequer in dealing with one of the fiscal taxes was on that ground, if not on others, open to great objection. Therefore, I make no doubt that my predecessor and his colleagues in the then Government were right to have proceeded upon the principle that three conditions should be satisfied, namely, that the assistance should be adequate to attract capital, to induce farmers to grow beet, and to enable adequate wages to be paid in the production—that it should be adequate, that it should be assured, and that it should be limited. Those are the three principles which find expression in the present proposal of the Subsidy Bill, and I should have thought that any scheme which was so generally beneficial might have secured the unanimous assent of all Members of the House.
I greatly deplore the fact that the hon. Member for the Hillsborough Division of Sheffield (Mr. A. V. Alexander) should have felt it necessary to place himself in opposition to it. He, I believe, represents, and, I believe, speaks for, the great industrial co-operative movement, and I am frankly puzzled by the necessity under which he conceives himself to labour of placing himself in this position. If the co-operative movement stands for anything, it stands for protection for the consumers, and I can conceive no protection that he can give the consumers more adequate or of greater value in increasing the supply of one of the commodities that come into the daily budget of the housewives of the United Kingdom. It is astonishing to me, that while the cooperative movement is prepared to push its position further and further, until it gets right back to the farm in all parts of the world, as soon as a concrete proposal enables them to do the same in England, they can find a hundred good reasons for not doing it. I should have tar preferred—and I believe they would have been wiser—to see them go into this business themselves, establish their own factories and use some of the millions that, I have no doubt, they have been able to save in the development of their business.
Then, I observe that other hon. Members have got on the Order Paper an Amendment in which they condemn this proposal because they conceive it would be establishing a vested interest, and that no vested interest should be permitted in food matters. In other words, they attack the development of an infant industry, if that development is to take place in private hands. [An HON. MEMBER: "At the public expense!"] I do not seek to make too much of the fact that the late Government proceeded on these lines, but I do ask them not to be wholly misled by words, but to recognise that facts are more important. What are the facts? The bulk of this country's sugar is going to be produced abroad, always. The sugar industry here, therefore, has to establish itself in sharp competition with the world production abroad, and to suggest that you are to strangle an infant industry here by imposing upon it, in face of that competition, a deadweight of State management and State control—because that is what their Amendment amounts to—is, I suggest, with all respect to them, like tying a can on a dog's tail before it starts the race. It really will not work, and I am the more confirmed in that view, because the right hon. Gentleman who preceded me in my office made a very powerful defence against some of the proposals previously discussed. He said: it, and that I prefer the policy of the Bill, which follows lines that have been proved, and have been uniformly successful, and do bring a direct benefit to both consumers and labour—to the consumers by securing to them a wider market in which to buy their sugar, and to labour a wider market in which to sell their labour. That is, I think, better than a plan that, from the point of view of both consumer and labour, would only be likely to have the effect of injuring them as taxpayers. Therefore, I hope the House will not be misled by the admirable arguments which, I have no doubt, will be advanced in favour of nationalisation in the course of this Debate.
I want to say something about the principal criticisms that have been directed against these proposals on the part of the refiners. Their case, as I have understood it, has been in the main this: They say, first of all, that the adoption of the Customs scale for subsidy gives a definite bias to the manufacture of white sugar as compared with raw. They say, next, that these proposals will mean establishing a new industry at the expense of an old one, and that the subsidy sugar will replace their refined sugar and that, therefore, the higher rate of subsidy should be for raw sugar only. The new beet factories could then manufacture white sugar on the same terms as the refiners. I am bound to say that I think, even on their own assumption, the refiners greatly overstate their grievance. After all, this is not a new question. It was discussed as long ago as 1913. The hon. Member for Greenock (Sir G. Collins) was as active then as he is now. The same point was raised again by my hon. Friend the Member for Moseley (Mr. Hannon) in 1922, and again in 1923 and 1924. Therefore, although, I think, it was unfortunate that the late Minister of Agriculture and the late Chancellor of the Exchequer who preceded me were not able personally to receive a deputation of refiners, I am advised by those whose official responsibility does not depend upon political earthquakes, that the refiners' case was very fully considered, and was in all respects most carefully reviewed. These proposals have been under the review of four Governments and have been debated in three different Parliaments on three different occasions. We became the responsible heirs of policy initiated in 1913 and announced in its new form by the right hon. Gentleman opposite. I have thought it my duty to meet the refiners and discuss their grievances as carefully as I could. They have been given the fullest opportunity to state their case, and I have given the most earnest consideration to it, not because I thought substantial injustice was involved, but because I was anxious to carry with me the good-will of that great business and industry' into this venture on which I think so much depends. I, therefore, addressed myself first to their principal contention that these proposals would mean the erection of a new industry on the ruins of the old. As to that, I should like to say this. First of all let me say that the refiners used very loose language when they talked about the advantage of the subsidy of 21s. 5d. What was the advantage that the new refiners were going to have out of that figure? The 21s. 5d. has to do a good deal. It has to secure the growing of the beet by the farmers. It has to make up the difference of wages that are paid in this country as compared with continental countries; and to suggest that that represents an advantage over the old refiners, is in the highest degree misleading. To suggest that we are paying a higher subsidy to refined sugar than to raw sugar is, in the sense in which it was used, most inaccurate, because the basis of payment is the amount of extracted or extractible sugar. It is quite evident that there is less extractible sugar in a cwt. of raw sugar than there is in a cwt. of refined sugar. Therefore the subsidy which is paid on the basis of the sugar content is obviously more per cwt. of refined. The payment both of the subsidy and of the Customs duty is the Customs scale. If it is fair for the purpose of Customs duty it is difficult to see how it can be unfair when applied for the purposes of the subsidy.
What ground is there for supposing that the business of these new factories will cut exclusively into the business of the old refiners? Here, again, let us look into the facts. The new production in England is only to-day a fraction of the total consumption of the country. That total consumption is about 1½ million tons per year. In 1924 these new factories produced 23 thousand tons; in other words, four days' supplies. Therefore, it is really an exaggeration to suggest that these new factories are going to have an appreciable effect upon world prices. Therefore, the future of the refiners depends, I suggest, much more on their ability to compete with foreign refined sugar than upon anything else. It is very likely that the refiners to-day are being hit, but that they are being hit by a bigger thing than the subsidy to home-grown sugar. They are being hit by a general drift of world sugar production. I am going to suggest as one who has addressed himself to the subject, and endeavoured to bring an impartial mind to bear upon it, that they are using this proposal as a peg upon which to hang a plead for general protection against foreign competition. They may say—it may not be worth argument, but I think this is the fundamental fact of it—they may say that they see no reason that the new production will cut exclusively into the foreign field, and not into theirs. On the other hand, I say to them that see no reason to suppose that the new production will cut exclusively into them and not into the foreign. In fact, the truth of the matter is that at this moment the consumption of sugar due to the remission by the right hon. Gentleman of the sugar duty is increasing, and that is another ground why the refiners need feel less alarm than they unhappily seem to do. Apart from that, I myself have no doubt that if the subsidy were so drawn as to discourage factories from undertaking what is called the "continuous process" in this business, it would be to establish them on a basis, unprofitable and uneconomic. That is, I think, supported by ample evidence from a great many different countries. I have heard doubts expressed by the refiners as to whether this industry, once established, will be able to make good at the end of the 10 years' period. Very likely these doubts would be reinforced if this industry were compelled to develop upon lines which the best modern practice is throwing out of date. Therefore, I think a case for the encouragement of the continuous process in this production is overwhelming.
Various suggestions have been made by refiners to meet their grievances. I venture to say that none have been made which are not open to grave objection either from the fiscal point of view or from their effect in diverting this new industry on to lines unfavourable to the principal purpose which this House must keep in view all the time, and that is the establishment of a new agricultural industry. Let me quote from what I believe to be an impartial journal, the "International Sugar Journal," which on this subject, in January last, said something which may have more weight than anything I can say. That journal says this:
I know that there are some Members of the House who always entertain sinister forebodings when the two Front Benches happen, happily, to find themselves in agreement. These forebodings become more sinister when the bulk of the House finds itself in general agreement. To those hon. Members no words of mine will avail. Nothing I can say will make any difference to them. None the less, I conclude by saying that, although in matters of agriculture, there is, I am afraid, or may be, much on which we cannot agree, let us all the more warmly welcome grounds on which most of us can meet and agree to take a constructive step forward. Therefore, I commend this Bill to the House feling very confident indeed that I am inviting the House to take such a constructive step forward to the great benefit of agriculture and to the general prosperity of the country. In all matters—and in agricultural matters especially—experience has taught me that to prophesy is both unprofitable and unwise. In spite of that, and with a general reluctance to prophesy, I do venture to hazard the conviction that when the efforts that this Bill represents have borne fruit, those who have taken part in it will look hack with great satisfaction on those efforts—a satisfaction not, I think, wholly free from surprise—that in this country action so beneficial to the nation could have been so long delayed. I beg to move.
Whatever controversy there may be regarding the Bill, I think the House will at once agree that we are indebted to the Minister of Agriculture for the very frank statement in which he has introduced it. Certainly, he has made our task on this side of the House very much easier in saying he did not wish to push too far the argument that the original proposal came while we were in office. It makes my duty this afternoon all the simpler and the easier because there are one or two things which we are bound to say on this side of the House regarding certain aspects of this proposal. First of all, I am quite sure that my right hon. Friends the late Chancellor of the Exchequer and the late Minister of Agriculture are in general agreement with the present Minister of Agriculture regarding the broad reasons for a scheme of this kind. There is in all quarters of this House an objection to subsidy in almost any shape or form. We must not, however, be mislead into believing there does not exist in our economic system in Great Britain widespread subsidy which it is rather difficult to trace, and that the real choice is a choice between subsidising unemployed people with no capital asset resulting, and that of giving temporary help to an industry which will provide a certain amount of employment, create a capital asset and start some new enterprise in the rural districts. That, I think, influenced broadly certain of our Members while we were in office. We were also impressed by the agricultural value of beet as what I believe they call a "cleaning crop," by the importance of the argument of trying to distribute industry more widely over the soil of Great Britain, and above all by its value in providing a variety of pursuits in the country districts, the absence of which is one of the difficulties, if not one of the curses, of our present agricultural problem.
On all these grounds we are entirely with the Minister of Agriculture this afternoon. But there are two great issues which are raised by this proposal and which have been made more or less acute by the Amendment submitted from this side of the House. First of all there is the issue of the refiners, to which the wages problem is allied, and, secondly, there is the broad issue of the subsidy itself. Let me deal as briefly and clearly as I possibly can with the question of the refiners and wages. During the time we were considering this proposal we were never able to make up our minds that the sugar refiners had a substantial case for their contention that they were going to be exposed to anything resembling severe competition, because even if the beet sugar industry made very much more progress in this country than even its most optimistic supporters imagine, the number of days' supply of sugar it would provide would be infinitesimal. Not for a very long time could there be any real danger to sugar refiners. That side of the argument never impressed us.
But another issue has arisen within recent weeks which I think the Government will be compelled to consider, and that is the argument of the employers, certainly in the existing refining industry, that they will be paying rates of wages in their establishments which will be substantially above the rates of wages in the country districts in which the new factories are situated, assuming that the labour for the new factories is recruited from agricultural territory. They contend there will be a kind of continuing subsidy or assistance to the lower wage in the agricultural factories, resting, of course, on this grant which the Government proposes to make. The employers in the sugar-refining industry in Greenock, Liverpool, the East End of London and other centres endeavoured to get the transport workers and, I think, other labour organisations, to co-operate with them in an appeal to the Minister of Agriculture. I am retailing only what is quite public property when I state that, after full consideration, the transport workers' organisation, which is the organisation covering employés in the existing sugar-refining factories, refused to take that course, feeling it would be very much better to argue the case for wage regulations in the beet sugar factories on the Floor of this House and afte wards in Committee. It is true that for a period of 10 years we are giving substantial help to this new industry in order to put it on its feet, but I am inclined to agree that if existing refiners have to pay £3 per week or more, which appears to be the level of wages in the existing factories, while wages in factories in the agricultural districts are probably half that—or a little more than half—there will be an extra form of help to the beet industry. It has been laid down quite clearly that there can be no question of separating the refining part of the new industry and confining the assistance merely to what I call the purely agricultural side. It has been proved, I think, that the refining is an integral part of the scheme, and that the scheme must stand as a whole. If that be so, it seems to me perfectly fair on the part of the transport workers, with the co-operation and assistance of the agricultural trades union, to put forward a request that as we are giving substantial sums of public money there should be a joint industrial council in this industry, that the wages should be regulated under such council, and that the rate of wage should be obligatory or binding upon the employers.
I recognise at once, of course, because We gain nothing by refusing to face facts, that there may be a good deal of opposition to that from those concerned in the schemes for new beet factories. It may be contended that if such a proposal were carried in Committee or in this House, it would act in some way as a reduction of the benefit we are giving under the subsidy proposals. But we are definitely putting substantial sums of public money at the disposal of a new concern, and I think it is fair to press that argument, especially when we have not the advantage in this case of any fair wages clause. It seems to me that would go a long way to meeting some of the objections which have been preferred by the existing sugar refiners. It would also get rid of certain other difficulties which, even now, are emerging in the agricultural districts, because I understand that certain farmers' organisations in the areas from which this labour is to be recruited are a little afraid of the higher rate of wages in the beet sugar factories affecting—as they think adversely—agricultural remuneration in general. That argument, I need hardly say, does not trouble me, or, probably, any of my friends on this side. I think we are unanimous that there ought to be a restoration of what did exist in the refining industry until it was broken up by a section of the Scottish employers, namely, a Joint Industrial Council, and that, in the light of the public grant we are making, we should try to insist upon standard conditions to secure uniformity—in the new enterprise on the one side and the old refining trade on the other. And so I ought to say at once to the Minister of Agriculture that in the Committee stage we propose to raise that issue in the most definite form.
I pass now to the problem of the subsidy, and again I want to acknowledge the very frank way in which the Minister reviewed the attitude of hon. Members on this side of the House. As he said quite truly, we stand for the solution of a problem of this kind in terms of public ownership, what is ordinarily called a Socialist solution. There is not the least reason why we should burke that issue at any time. Had we been in power with a majority in the last Parliament, or in any Parliament, there is no doubt that the whole programme of the party commits us to national enterprise on such lines. We had not a majority in the last Parliament, and we are in a minority in this Parliament, and those of us who believe in representative institutions are, of course, compelled to agree that there is not yet a majority of the people of this country of our Socialist or Collectivist persuasion. That being so, our duty is to try to make up our minds as to what we ought to do in the circumstances that confront us. I want to say quite frankly, and I think most hon. Members behind would agree, that we should incur a very grave responsibility if we put any obstacle in the way of the development of a new industry in Great Britain, which is to help both the town and the country districts, simply because we were not able to carry our broad economic faith into its establishment. I think that is fair and reasonable in the circumstances in which we find ourselves.
But it does not rid us of the duty of asking whether there is any way in which we can modify this Bill, or amend it, which, without damaging the scheme, will so far at least safeguard the principles we have in mind, seeing that considerable sums of public money are being spent. On that point I think we are bound to press in Committee such an Amendment as would secure some kind of place in the control of this scheme for the Government, or the taxpayers, and I go beyond that and suggest also some place in the actual ownership of the capital asset itself. We are obliged to recognise that if, in respect of the very substantial subsidy we are giving' from the taxpayers' money, we insisted upon some immediate allocation of capital, or some other right, that that would undermine the grant in the 10 years of the experimental period. But if we imagine for a moment that this enterprise succeeds, as I fervently hope it will succeed, we should not be precluded from the right to provide at the end of that time for some kind of place in the industry in respect of the capital asset created. While admittedly this raises a very large principle, it is a principle which this House must face without delay in dealing with the various forms of subsidy which we are now giving at the expense of the taxpayers.
5.0 P.M.
Let me try to illustrate the point. Here we are giving a definite grant of public money for 10 years. But if we pass to the sphere of trade facilities, we will find that we are bound under existing legislation to give a guarantee in the aggregate of, it may be, £65,000,000—only a guarantee—which enables capital for various forms of capital expenditure to be raised in the open market a little more cheaply, perhaps, than it could otherwise be raised. Promoters get the definite guarantee of the State behind a scheme, and in so far as they raise capital more cheaply, whether it is only ¼ or ½or 1 per cent. more cheaply, the amount applicable to that difference is, of course, a kind of measure of the grant or the gift which is being made from the money of the taxpayers or at the expense of British credit. That, I think, is a not unfair argument in this connection. Many of these companies will be coming to the Trade Facilities Committee—some have already come—asking for a trade facilities guarantee for the capital they seek to raise in order to erect these factories. In so far as they raise the capital more cheaply by reason of the guarantee, they get a further concession or benefit at the expense of the people. Therefore you have, first of all, a direct subsidy of an ascertainable amount made to the beet industry, and, secondly, you may have a substantial subsidy of another kind in the form of the benefit they gain from the trade facilities scheme. Taking these two things together, are we not entitled to argue, with perfect fairness, that we should have a place in the control of this industry, and in due course have our place in the capital asset created? As to the controversy that will be raised hon. Members, both Conservative and Liberal, will at once say, "You are arriving at a certain measure of public ownership by a new and rather unexpected route." I do not think the route is new, because certain forms of public ownership have already been established in that way. The point I am pressing is whether we can go on in Great Britain in this and other industries giving a very practical benefit of this kind without having either of the rights which I have just described. But while it is a problem of public ownership and only one route, it is fair to suggest that it is also an ordinary business proposition. What business man would give a direct subsidy or guarantee his credit and at the same time have neither part nor lot in the control and management of the business? I do not think we are departing from what we laid down when I said that it would be our duty to raise these issues on the Committee stage. It may be said that any scheme of this kind would have the effect of staving off the support which we are likely to obtain from the capitalists outside, but I do not take that view. Of course there is that side of the question, but the other side is that there is a security, guarantee and strength about the scheme when the State itself thinks it worth while to back up the industry by financial help. Consequently there would be a very practical reply to an objection of that character if it were put forward.
I do not know how far the two points I have put will reconcile that section of opinion on the benches behind me, which is admittedly hostile to this scheme, but if these two proposals are fought out in Committee, whether we are successful or not, I am sure that will go a long way to meet the objection of supporting private enterprise by public money. In this case we are partly supporting this enterprise by State money, and a very large part of the money must be put up by the investing public outside. If we can meet that criticism in that way, I believe the opposition will be reduced to a much smaller proportion, and we may get a better basis for the beginning of this scheme. My criticism this afternoon is not confined to our own party, for it has been put forward by many business men who are hostile both to trade facilities and State assistance and any form of subsidy to privately owned industries.
I want to say, in conclusion, that while we shall press these points in Committee we adhere to our support of this proposal. We are quite satisfied that the effect of it will be that there will be a very real agricultural gain and a very real town gain as well. I also want to add that it is our duty to encourage a wider variety of industries. One of the curses of our present trouble is the tendency of a, large number of men and women to have only one pursuit, and they are aften hopelessly unemployed when anything happens to their particular industry. Therefore, we should encourage every new industry in every possible way, and we should not be afraid of any new step in this direction if we can safeguard the public position. On those grounds, I and many of my colleagues intend to support the Second Reading of this Bill.
As I am taking this opportunity of making a maiden speech I claim the indulgence of the House, and I am specially glad to have the opportunity in so important a subject both from the industrial and agricultural point of view. Those who are in a position like myself of representing a constituency which is partly agricultural will realise the great benefit that this new industry will bring to that portion of their constituency, and there will also be a great benefit from the factories which we learn are going to be put up. I am very glad, not only on account of what took place in the Debate before Christmas on this subject, but on account of what I have heard in this Debate, that there is every prospect of this Measure being placed upon the Statute Book. We, know that in past years there have been Conventions between the different countries in order to regulate the supply of sugar, and we were inundated at one time with cheap sugar which was produced in foreign countries under these subsidies and where they have made such a tremendous success of them. We know that all this ended in the Brussels Convention—called at the request of Great Britain—but there again we had to break away from it in 1913 on account of the penal cause contained therein.
We began to get on the right lines when in 1916 we put on a much higher duty, namely, 14s. per cwt. In 1918 that duty was raised to 25s. 8d., and of course the Excise Duty was put on to counterbalance that. I think I may safely say that it gave a great impetus this new homegrown beet sugar industry, when, in 1922, the Excise Duty was remitted, and which gave them the benefit of a subsidy of 25s. 8d. per cwt. May I point out that it was a Conservative Chancellor of the Exchequer who was responsible for taking away the Excise Duty, thereby giving a real subsidy to the sugar industry of 25s. 8d. This gave a great impetus to the new industry. Immediately after that we had a Labour Government in office, and they re-imposed the Excise Duty, but reduced the Customs and Excise Duty to 11s. 8d., which made a difference of 14s. per cwt. I think the sugar industry must have thought of that Biblical saying because they will let you down if you do. Farmers will recall that a subsidy was promised them and afterwards withdrawn. I would like to give my quota of praise to the Opposition in that they clearly saw daylight in this matter, and realised that this industry was so important that though they re-imposed an Excise Duty they decided to grant an out-and-out subsidy. I congratulate the late Chancellor of the Exchequer, who had the courage of his conviction to do that, and grant an out-and-out subsidy and largely carried his followers with him. Sugar is one of the most important articles of food. We realised that during the War, when it was as important that our soldiers should receive their sugar supply as a supply of shot and shell for the guns. It is somewhat humiliating when we think that before the War we were importing nearly 2,000,000 tons of sugar, and of that amount over 60 per cent. was beet sugar coming from Germany and Austria. Those two countries had built up that industry to such a tremendous extent that they were supplying us with this big amount of sugar. That is one reason why they were able to carry on the War so successfully because they had done so well by their bounties in creating these industries. Incidentally, may I point out that every country which has created this sugar industry has had to do it by means of subsidies in one form or another. Now we have the sugar refiners crying out because they say they are being hurt. In a petition to the Minister of Agriculture, they say: Surely when you are producing sugar by one process, it stands to reason it is-going to be produced in a cheaper way than where you are doing it by two processes.
I would like to point out to this House that the sugar refiners are employing an uneconomical way of producing sugar. As a matter of fact they are not up-to-date, and that is the trouble. They say that this white granulated sugar produced from beet is going to hit their business. The reply to that is that they are going to be hit if they are still going to stick to uneconomic methods of production. The refiners abroad are realising their strong position, and in 1922 over half a million tons of refined sugar came here. The refiners do not touch that sugar at all and they have nothing to do with it. The refiners deal with the raw sugar, and that raw sugar is produced by the workmen in the foreign countries. They receive their wages for it, and it is sold here, and a profit must be made upon it by the importer. Then our refiners take it and deal with it. Is it not unlikely that they will have to go out of business if they continue on such lines as that? We see, therefore, that even in our wonderful Free Trade country we have industries that are not up to date and are not doing their business as they ought. The Amendment of the hon. Member for Moseley (Mr. Hannon), that only the raw sugar should receive the subsidy, would simply mean that this industry was going to be put back another dozen years—this industry which is already here, which is going forward, and will continue to go forward if only a helping hand is held out to it.
Looking at the matter from the agricultural point of view, we have now an opportunity of bringing back men to the land. In the first place, the farmers are going to get a splendid return on their beet crops. They are going to receive 44s. for every ton of beet that they grow which yields 15½ per cent. of sugar, and our country is just as suited in its environment, if not better suited than foreign countries for the production of beet. Some of our beet has yielded 16, and I believe I am correct in saying even as much as 17 per cent. of sugar after passing through the factory. Therefore, we are in just as good a position to develop this industry, if not in a better position than Germany and Austria have been. Under this subsidy, the factories have been able to say to the farmers that, if they will enter into a three-year contract, the amount paid to them will be increased, and, instead of getting 44s., they will get 54s. for every ton of raw beet, and for every 1 per cent. extra of sugar they will receive an extra 2s. 6d. per ton. As regards the agricultural employés' point of view, I see the statement is made that if one quarter of the sugar imported in 1922 were home-produced it would mean something like 400,000 acres under beet, and, taking the figure which the Minister has already given, of one man for every 10 acres, that means the employment in our country of something like 40,000 men on the land, at wages amounting to £1,500,000. Is not that what we want—to bring the agricultural employés back on the land, to provide work for them, and to enable the farmer to pay a higher wage? I feel proud of the chance that I now have of supporting this Bill, because I believe that it is going to do my district a great deal of good.
Again, from the factory point of view, if, as I have said, we produced one-quarter of the sugar that we imported, it would mean something like 50 factories at work in this country, employing something like 30,000 men, with £1,000,000 paid in wages. They would be employed from October to January, just during the winter months which are a slack time, and they would be employed on the land for the other eight months of the year. I was glad to hear the Minister say, also, that a certain proportion, namely, 75 per cent. of the machinery must be manufactures at home. I think that that is a splendid thing, because it is supporting home industry, which is what we so much want to do. In looking up the statistics with regard to Germany, which has made such a success of this industry, and which used to export so much beet sugar to us, I find that in 1922 Germany had 263 beet sugar factories producing, 1,662,000 metric tons. If this Bill is allowed to go through I do not see why we also should not have our 200 or 300 factories producing sugar. We have heard from the Minister, and very rightly, what a splendid effect is produced on land that has been under beet. When it is put under wheat, or corn of one sort or another, it will produce crops something like 15 or 16 per cent. larger than the crops produced before. Some may like to call this Protection, but I am not afraid of protecting our industries. I agree with the ex-Financial Secretary to the Treasury when he said, "With suitable precautions." I quite agree as to that, and I think it is a very necessary point, but I believe strongly that we ought to subsidise work, instead of, as we are doing so largely to-day, subsidising idleness.
I am sure that Members in all quarters of the House will join with me in congratulating the hon. and gallant Member upon his maiden speech. He has spoken with fluency and with an intimate knowledge of his subject, and I am sure we shall all look forward to his further intervention in our Debates. I have risen to oppose this Bill. Later in the Debate the right hon. Gentleman the Member for West Swansea (Mr. Runciman) will voice the views of my party, and at the moment I am speak-as Member for Greenock. I am sorry that the Minister of Agriculture is not in his place. Following him, as I do, this afternoon, I find it extremely difficult—and as he is not here I may say the more readily that I think there is no right hon. Gentleman on the Front Government Bench who is more capable of piloting a difficult Measure through the House of Commons than the right hon. Gentleman—his manner this afternoon has made my task more difficult, but I would appeal to the House of Commons to look at this matter from the point of view of the refining industry. The Minister of Agriculture argued that his proposal was in the interest of agriculture, but I think it is quite clear that the driving force behind this movement does not come from the farmers. It. is not the agricultural interests who have been persistent year after year in forcing, at one time the late Government and to-day the present Government, to go forward with this large subsidy. The interests are really not agricultural.
Of course they are.
I have here a paper issued by the British Sugar Beet Society, and I was very much struck by the following words, coming from that quarter, in regard to the year 1922. It is stated, on page 9 of this paper, that In other words, before that year, 1922, the agricultural interest had not taken an active part in this matter, according to this circular issued by the British Sugar Beet Society. Therefore, I think I am accurate when I state that the interests behind it are not agricultural. They are foreign capitalists who are anxious to erect factories in this country, and although, naturally, I am at all times very anxious that any foreign capitalist should come here, these foreign capitalists are going to receive large sums of money from the British taxpayer. It is quite different from the attitude which we on these benches take up of welcoming foreign capitalists, when these capitalists are going to receive large subsidies out of the taxpayers' money. I would ask, why should the Government hurt the refining industry? What has it done that the Government of the day should take from the pockets of the taxpayers large sums of money to erect these refineries throughout the country? The Minister of Agriculture, earlier in the afternoon, stated that really it was a small matter, that there would not be a very large amount of sugar refined in this country; but the hon. and gallant Gentleman who has just addressed the House stated that he looked forward to the time when there might be 200 new factories erected in this country. Therefore, the fears of the refining industry are well grounded, because the interests behind this movement are not content with the six or seven factories which are being established; they look forward to a large extension of refineries erected in this country to refine the sugar grown through this very large subsidy.
I am glad to see that the Minister of Agriculture is now in his place. What is the position to-day of the refining industry? The capacity of the refining industry is about 1,500,000 tons, but to-day they are only melting 1,000,000 tons. Therefore, there exist to-day in this country facilities for the production of 500,000 tons, which are not being exercised. Why should the Minister of Agriculture give this large subsidy to these new factories when there are to-day great facilities for refining which are not being fully exercised? I shall be glad to hear why he should go out of his way to use public money for this purpose. The hon. and gallant Gentleman stated that the present refineries are not efficient. I wonder if he has visited the refining industries in this country. What authority has he for making that statement? Has he visited these refineries? My information is that the refineries in this country are modernised according to the highest standard in America and Czechslovakia. The argument advanced by those who are behind this movement that the refining industry is not efficient—
I was speaking of the white granulated sugar. I quite realise, of course, that there are two kinds. I was speaking of white granulated sugar, and I maintain what I said.
My opinion, and I think I am correct, is that the refining industry is in a high state of efficiency to-day, and there is no necessity for spending public money to create these new refineries up and down the country.
They are not refineries.
What is the position of the refining industry to-day? Our refiners have to compete with sugar coming to this country from other countries, where the refiners are selling their produce at a high price, and in addition are receiving a concealed subsidy from their respective Governments. That is their position to-day, and to-morrow they will require to face the competition of these new refineries throughout this country. Their capacity to-day is about 1,000,000 tons. What the capacity of these new refineries will be it is difficult to say, but I suggest to every hon. Member that the price may well be broken in the home market if these new factories are erected, and the home manufacturer will have to meet, not only the difficult foreign competition, but the competition from the new subsidised industry at home. The position to-day is a serious one. During the last three months of 1924 the deliveries for home consumption decreased while the imports from foreign countries increased. Their position is a difficult one to meet foreign competition, and now they are going to be faced with this new competition. The President of the Board of Trade said that one refining company had decided to go into this business, but there are other refiners who are unable to find the necessary capital and unless they can do so their position in the future will be very difficult. There is one firm, in this country which, if it carried out the policy the right hon. Gentleman desires, would require to find some 35,000,000. These people have not the capital available to enable them to do so. That is the information I have received from a large firm in this country. The President looks forward to a large development in this industry. What reason has he to take such an optimistic view of the future? Has the record in the past been such an attractive one? Has; the money which previous Governments have invested in this industry been so successful? Take the Kelham Factory, with a nominal capital originally of £1,000,000. The Government found £250,000 of that amount, and later a further sum of £200,000, but in 1922 15s. in the £ of that capital was written off, and that has been the past record of the Kelham Factory. The experience of the Cantley Factory is very similar. It started in the year 1912. Towards the end of 1922 the record of that firm showed a loss of £15,000,000. These are the past experience of these two factories in this country. Would it not be rather better to cut the loss rather than put up further sums of money?
The President of the Board of Trade is to-day inviting the House to grant this subsidy. One of Ms predecessors in 1903 brought great pressure to bear upon Continental countries to stop the subsidies which their Governments were making to sugar growers, and by means of diplomatic action the Continental countries in 1903, largely because of the intervention of a Minister associated with the Conservative Government of that day, stopped the large bounties they had given for many years to their growers. The President is now reversing that policy. The bounties given by Continental countries in 1903 were small. To-day the bounty, I am told, is three or four times larger than the bounty given by Continental countries in 1903. These countries at that time were very glad to discard their subsidies. They found them uneconomic. The experience of these countries over many years, and the experience of the two factories I have named, is surely sufficient to show that further public money should not be spent in this manner. Take also the size of the subsidy. The price of sugar to-day is about 2d., and the Government give a subsidy of 2d. A subsidy as large as that has never been given by any Government to any industry at any time. It is an appalling sum. A meagre subsidy might have been arguable, but it is so large in amount, dealing as it is with a commodity which can be cheaply grown. I have but to put it in that way to show that the present refiners are really going to be heavily penalised. The Minister thinks they have overstated their case and gravely exaggerated their arguments, but nothing can get away from the fact that the Government is proposing to give 2d. for an article which costs 2d. I know the Minister is willing and anxious to meet the case of the refiners, but I believe he is unconsciously doing them an injustice. I do not desire to use extravagant language or to overstate the case. He may think these individuals are exaggerating, but their livelihood is concerned. They have invested their money in these industries, and when they see Government money being poured out so lavishly they believe the House of Commons is doing an injustice, however unwillingly.
Let me deal with the cost of the subsidy. On the Debate on the Financial Resolution the President stated that the cost to the Exchequer would be this year about £500,000. That is on the basis of some six to eight factories. But we know from the hon. and gallant Gentleman who preceded me that 'the interests behind this movement are optimistic. They see large possibilities in this industry, and it is well within the range of possibility that, instead of the subsidy costing £500,000, it may well cost I he Exchequer some £6,000,000 to £7,000,000 a year on the basis of some 250,000 tons a year.
The hon. Gentleman's argument on that point is not sound unless he goes on to state that, after the State had paid the subsidy, it would also recover the Excise.
The subsidy to-day, according to the White Paper, is 19s. 6d. per cwt. It is quite impossible for either the right hon. Gentleman or myself to make any accurate forecast of what the subsidy may well be, but we all know that once a subsidy is started it grows year by year. That has been our experience over this business. The small subsidies originaly granted have now been heavily increased. Past experience in the matter is a sufficient guide to show that, although to-day we are embarking on an expenditure of only £500,000. It may well be, even if the optimistic hopes of the hon. and gallant Gentleman do not mature, that the country will be saddled, as Continental countries have been saddled in the past, with heavy expenditure which can only be met by increased taxes levied on all classes of the community. At the same time as the subsidy is granted, legitimate vested interests are created. The interest of hon. Members representing constituencies where these factories are erected has been aroused, and it will be difficult, if not well nigh impossible, for any Government to mitigate or to alter fundamentally the subsidy once granted. My appeal to the right hon. Gentleman, one I have made to him before—and the sugar-refining industry has also addressed it to him—is to limit the subsidy to raw sugar. The arguments against that, I understand, are two. First he would say, it is not economic, and, secondly, it is not in keeping with the practice elsewhere. On the first ground, I can hardly think he will advance that argument to-day. The whole matter is not an economic one. He did not argue the case purely on the ground of economics. He was anxious to increase the productivity of the soil and gave other reasons, but surely he could not advance the economic argument when granting a subsidy of 2d. for a commodity which costs 2d. a lb. His second argument, that it is necessary to finish refining in one stage, is vigorously contested. In Czechslovakia, where the refining industry is more highly developed than anywhere else, that state of affairs does not exist. The practice in that country is to pass the sugar from one refinery to another. I am given to understand that that is a practice in the very latest factories which have been started in Czechslovakia. If those two contentions are sound, I hope the President may yet restrict the subsidy, even if he cannot fundamentally alter it.
I have spoken about the injury to the refining industry, but there are other industries which are going to be seriously affected. There is the shipping industry bringing sugar from distant ports. There are industries here which are sending out goods to pay for our raw sugar. There are the ports, docks and wharves. Even in Greenock alone £1,500,000 has been spent in creating those docks. The Minister thinks the investors are grossly exaggerating, but there is a real nervousness. There are only imported into the country a million tons and they see that there are shortly to be erected factories which can melt 250,000 tons, which will cut into their trade. There are the dock labourers and all the subsidiary interests which have grown up in the last 70 years round this industry. Even during the last few months one firm in Greenock, which has been in business for many years, has had to go out of business and the state of the industry is not a prosperous one. The Financial Secretary, speaking on the Financial Resolution, said he was anxious to hold the scales evenly. I suggest that he has loaded the dice against the refining industry and against all the industries connected with it. I know that in the Debate Members in many quarters will take a different view of the policy I have outlined, but I hope I have made it clear that if this subsidy is granted, rightly or wrongly, and I think rightly, you are creating an injustice in the mind of the refining industry. You are using public money to subsidise a particular industry which is being carried on at a high state of efficiency and which has facilities for production greatly in excess of its present demand, and I appeal to the Minister of Agriculture to modify his proposals.
I beg to move, to leave out from the word "That" to the end of the Question, and to add instead thereof the words
The objection I have to level against this subsidy can be described under three headings. If we have to create a new industry—and this is the creation of a new industry, because private capital has entirely failed to tackle the problem of growing sugar beet in this country—and we have to create that new industry, for the national reasons outlined by the Minister, by a generous contribution from public money, Members of this House are entitled to argue that the principles of national ownership and control should be ensured. That is a legitimate claim, and we can assert that claim without in any way denoting opposition to the improvement of agriculture in this country. The second point of my objection is that, as usual, there is no difficulty in inserting safeguards for those who invest capital and in giving security as far as price is concerned to the farmer; but when we request similar securities for the producer and the consumer should be inserted in this legislation, considerable obstacles are advanced. Until the interests of the producer and the consumer are equally safeguarded, with the safeguarding of the capital invested by a private person and safeguarding the price fixed for the farmer, I shall continue my opposition to this Bill.
The third point of my opposition is, that if the State is being asked to advance huge subsidies of this description—I know of no instance in the history of Parliament where such extravagant subsidies have been advanced as are being advanced in this Bill—and if subsidies of this sort are necessary, we are entitled to ask, both from the Treasury and from the Minister of Agriculture, what business tests have been applied to ensure that this is the smallest and the minimum form of subsidy that is required. When we were discussing the Financial Resolution, I submitted a series of questions to the Minister of Agriculture, but he never attempted to reply to them. I do not know whether it is the custom for right hon. and hon. Members on the Government Bench to reply only to questions submitted from the Front Opposition Bench; but as both Front Benches are more or less in agreement on this matter, those of us who disagree with the Bill are entitled to ask from the Minister of Agriculture a reply to our criticisms and to our case against the Bill.
I wish to repeat some of the questions in the hope that I shall be more fortunate on this occasion in getting a reply from the Minister. When we trace the history of the efforts to obtain subsidy for homegrown sugar beet, what do we find? The first form of State grant took place in the investment of a large sum of money in the Home Crown Sugar Limited. In connection with that unhappy adventure, £375,000 of public money have been invested. The value of that £375,000 to-day is, on pa per. £62,000. I should like to know how much of that £62,000 is represented in the form of tangible assets. On that one investment alone the nation has lost £313,000. in addition, I find that the State guaranteed the interest of 5 per cent. on private capital subscribed up to 1930. How much of this guaranteed interest has been paid? What total liability or expenditure has already been incurred by the State, and how much is it likely to cost in the future? I ask that because the Kelham undertaking on which the original guarantee was given has been taken over by the Cantley Sugar concern. We are entitled to know whether the 5 per cent. interest guarantee to Kelham investors up to 1930 has been transferred now that that undertaking has been absorbed by the Cantley undertaking, or whether the purchase price of £131,000 meets that State liability.
The next point is the problem that this subsidy represents when we deal with the output of home-grown sugar. In a recent publication, issued to Members of Parliament, on the question of promoting the development of home-grown sugar beet, it was mentioned that the last season's output totalled 22,000 tons. I assume that the bulk of those 22,000 tons comes under the provision for the remission of taxation at a figure of 25s. 8d. per cwt. Here I want to submit a point which I put forward in the Debate on the Financial Resolution, which was treated with ridicule by hon. Members opposite. Certainly, no one attempted to answer the point. I assert again, and I shall continue to assert it until proof is given to the contrary, that under this combined system of remission of taxation and subsidy the people of this country pay twice, first by having to make up the deficiency in taxation, and, secondly, in price, when the sugar comes on to the market.
For the purpose of eliciting a reply on this point, I wish to repeat the figures in regard to the output of 22,000 tons. On that output the State revenue lost £500,000. If that sugar had been imported without remission of taxation it. would have yielded something like £500,000 in the form of taxation. If the 22,000 tons were subject to the remission of duty, obviously, the amount of taxation remitted in that case must be made up in other directions by the taxpayers in their various forms of contribution to the national revenue. There is the further point, that home-grown sugar is placed on the market at the same price as imported sugar. Therefore, the producers of the home-grown sugar collect a sum equal to the duty from the consumers in this country in the price they charge for the 22,000 tons of last season's crop. If the consumer in the first instance had paid for this sugar in the form of the taxation, he would have paid only £500,000, whereas under the system that prevails he has to make up the deficiency caused by the remission of taxation on home-grown sugar by his contribution to taxation in other directions, and he has to pay also the equivalent of the amount of taxation in the price of the home-grown sugar. Therefore, the net cost to the taxpayers and consumers of this country of the 22,000 tons of home-grown sugar beet was roughly £1,000,000. I should like the Minister to upset that statement if he can.
As I understand the new proposals, the subsidy will be 19s. 6d. per cwt., less the imposition of the Excise Duty of 9s. 8⅔d., which makes the net direct subsidy from the 'Treasury 9s. 9⅓d. In addition, this industry will still enjoy the remission of Customs Duty of 11s. 8d. per cwt., which makes a total subsidy, a total protection for home-grown sugar of 21s. 5⅓d. The cost price of sugar to-day on the London market, including the tax, is 32s. 4d., as against the State subsidy of 21s. 5d. on home-grown sugar. What industry could not be established on a basis of that sort? It is futile to argue that we could not create almost any industry on the basis of practically £1 for every £1 on the cost of production.
You could grow bananas on that.
You could grow anything on a system of that sort. I should like to know what stets have been taken and under what investigations the Treasury and the Board of Agriculture have ascertained the cost of production of sugar beet in this country, and the difference in cost as against the cost incurred by the foreign producers of sugar. Have they carried out costing analyses of every process in the production of sugar beet in this country? Have they discovered that it is necessary to have a fixed subsidy for a period of 10 years, although I notice that the subsidy declines in the last six years. The average, however, for the 10 years is 13s. 6d. When the Financial Resolution was introduced, the cost of sugar on the London market, including the Customs Duty of 11s. 8d., was, roughly, 34s. per cwt. Was the subsidy fixed on that market price of 34s.?—If so, what will be the position if the price of sugar falls still further under the figure of 34s.? Obviously, if sugar was to fall much below 34s., the subsidy of 21s. 5d. would not be sufficient. On the other hand, competition is very keen in sugar to-day, and there is no security that the price will remain at that figure.
6.0 P.M.
Take the price of sugar in 1923–25. At one time in 1923 the wholesale price of sugar was 65s. 7d.; the tax then was 25s. 8d. If you deduct the 25s. 8d. the net cost was 40s. Supposing sugar goes up 5s. or 10s. a cwt. in the next year or the next two or three years, are the home-grown sugar beet interests to put that increase of price into their own pockets in addition to the subsidy of 21s. 5d.? Why cannot we have a sliding scale in a subsidy of this description? If 21s. 5d. is to be the subsidy with sugar at 34s. a cwt., it is too high a subsidy if the sugar is at 40s. or 45s. a cwt. Before we agree to embodying such a subsidy in legislation, we are entitled to ask the Minister as to what would be done in an instance of that sort. Take wheat. We have seen the price of wheat, owing to the manipulation of the world market, go up by from 5s. to 15s. a quarter. The Minister said this afternoon that he did not contemplate that the home-grown sugar will affect world prices. In that case what guarantee has the taxpayer, under the principle of this subsidy, that, if world prices move upwards, the investor of capital in these undertakings will not take the whole benefit of a scheme of this description? On business grounds, financial grounds, as well as the general grounds of principle, we continue our ease against this Bill.
When we consider what the prospect of having this subsidy over a period of 10 years means, we are entitled to ask why a period of 10 years has been fixed? So far as I can see, it is to cover the period which is necessary to wipe out the cost of plant, machinery and overhead charges of that description. Is that the reason, or, if it is not, what is the reason? We never had an opportunity of questioning our own Front Bench on the matter. If my own Government had introduced this Bill in the form in which it is introduced to-day, I should have levelled exactly the same criticism against it. I do not accept, and I never shall accept, the principle that it is our duty to agree to everything that is advanced from the Front Bench. It is our duty to support our respective parties as best we can, but if we are honestly convinced that there is a case against a Bill, then, irrespective of the question who introduced the Bill, it is the duty and responsibility of private Members to advance their objections. The reason why I am levelling the present criticism against the present Minister of Agriculture is because he is in the fortunate position of being responsible for the Ministry. If 10 years is fixed for the purpose of enabling investors to wipe out the expense of their plant, machinery and fixtures, which is a heavy expense, as everyone realises who has watched the erection of a sugar beet factory, then he ought to tell the House. If that is not the reason, what is the reason?
I assume that it is to meet that liability. If that is the case I take strong objection to it. Obviously it means that the State money will be used to carry all the risks that usually are incurred by a private investor. Hon. Members opposite cannot have it both ways. They cannot, during election times, in their general opposition to the principle of common ownerships, lay down the principle that private enterprise can function in society better than common enterprise, and yet, when it comes to an industry of this kind, ask the State to carry all the initial liabilities and risks. If my assumption is correct, it means that the period of 10 years for the subsidy is really to be used, not for the purpose of meeting the difference in the cost of production in Great Britain, as compared with the cost of production abroad, but for the purpose of meeting depreciation charges on the capital invested during the next 10 years, so that the business may start free of all the ordinary overhead liabilities which the average business throughout the country has to meet.
From the moment that the State has undertaken a liability in the form of this subsidy, we find a stampede on the part of certain interests to get in and enjoy the benefit. A few days ago we had a debate on the housing question, and the methods of constructing houses. I have never noticed before that Lord Weir, who was mentioned frequently in that debate, has shown any interest in the construction of houses or in the housing problem, but directly there was a substantial subsidy attached to the contruction of houses Lord Weir immediately began to get around, and now, when a very substantial subsidy is being given to sugar beet, I find Lord Weir also developing the same interest in the agricultural industry of this country, as he has been showing in housing, and Lord Weir, I find, is the Chairman of the Anglo-Scottish Beet Sugar Corporation.
Two corporations have come into being since this subsidy has been announced, one representing English and Dutch interests and the other representing English and Scottish interests. Neither of them represents private agricultural interests, because the Anglo-Scottish Corporation are composed mainly of capitalists interested in the engineering industry of Scotland, and their interest in the development of home-grown sugar beet is a question of how far they can stimulate it for the purpose of being asked to provide the machinery. That may be all right. In its way it might create additional employment, but we are entitled to ask if this investment of State funds is going to bring back all these forms of activity. What is wrong in our contention that, instead of private individuals enjoying the advantage, the community should enjoy the advantage?
The Minister laid great stress on the advantage to agriculture that would ensue if this industry is a success. I have always been in favour of improving the agricultural life of Great Britain. I would go a long way for the purpose of restoring agricultural prosperity in this country, but I want to emphasize this problem. Whether you like it or not, for a hundred years we have built up the industrial side of Great Britain to such an extent that the overwhelming mass of our people now are congregated in the towns. You have the town problem and you have the agricultural problem, and you will not restore prosperity to the agricultural areas of Great Britain on lines of this description. You must give to the consumer a corresponding advantage as well as to the producer. Under this Bill neither the producer or consumer has any advantage at all. The consumer gets no advantage because, in the words of the Minister, home-grown sugar beet will not affect world prices, and, if it will not affect world prices, you cannot put on the market in this country home-grown sugar at a lower price than the sugar grown abroad. Therefore, there is not the slightest possibility of the prices of sugar in this country being lowered by a subsidy of this sort.
On the other band, what conditions are there in the Bill to make life brighter and more generous to the agricultural labourer? I suggest that if we get a sugar trust—and we have got a sugar trust already—we shall be exploited as every other industry has been exploited, not for the purpose of giving more ample provision for those who work in the industry. I suggest that you are casualising workers in this industry as in other industries, and that it will not benefit the agricultural labourer, but will worsen his condition and casualise it. Obviously if there is an opportunity in agricultural areas of securing farm labourers, who very often are employed all the year round, to go to-day into those sugar and beet factories where they might get employment, one can easily see that far from this improving the lot of the agricultural worker, it may be used to casualise the industry and worsen the conditions of the men, as has happened at our ports and riversides in the transport industry. There is no safeguard in this Bill for the agricultural labourer. I do not think that you will ever get real agreement between agricultural interests and those of us who represent the great urban industrial communities of Great Britain, unless you tackle the question in the right way.
The only solution for the farmer, the agricultural labourer and the consumer, is to tackle the spread of prices between the producer and the consumer, but you will not do that, and you never have any attempt to do that under a capitalist Government. I have never seen any capitalist Government that has attempted in an adequate and sincere way to deal with that question. The real problem that underlies this Bill is the spread of price between the producer and the consumer, the pickings, the niblings, the extractions, from individual to individual, and from service to service that are redundant and parasitical in our life to-day. You must eliminate these wasteful services that exist. By That means you will get a really economic saving in labour, plant, machinery and service, and if hon. Members opposite, who profess to represent agriculture, will begin to get down to the problem along those lines, we shall be glad to support them. I must say in conclusion that the statement made by the late Financial Secretary to the Treasury (Mr. W. Graham) went a considerable way to wards meeting some of the objections which I have to this Bill, and if the Minister will undertake on the Second Reading to accept the principle that, in reference to the State subsidies, the State will retain some control or partial control, and if he will meet the position of the producer, and as far as possible the position of the consumer under this Bill with similar guarantees, then some of the opposition which Members like myself advance might be withdrawn.
I beg to second the Amendment.
The Minister, in moving the Second Reading of the Bill, suggested that the Bill was a marriage between town and country. If I had to describe the Measure in any such terms, I would rather describe it as an abduction in which the rich heiress represented by the public purse is being carried off by the unscrupulous private capitalist. I notice, too, that the ex-Financial Secretary to the Treasury, in putting forward the revised point of view of the Labour party, said on behalf of the party, "We would not put any obstacles in the way of the development of a new agricultural industry." That is a perfectly fair statement of our position, but I am sure that my right hon. Friend would be the very first to agree with me that there is a very great difference between putting obstacles in the way of the creation of a new agricultural industry and paving the way for that industry by means of public gold, which is what we are doing in this instance. My objection to this Measure is founded on the belief that it is a grave injustice to the taxpayers and the consumers of the country. It is a very sound principle that we ought never to do anything which is to benefit a comparatively small section of the community at the expense of the great bulk. In subsidising this particular industry we are doing precisely that thing. On very are occasions there may be some paramount consideration which would impel us to depart from that general principle, but in this particular case, so far as the sugar beet industry is concerned, no case whatever has been made for exception. If a case had been made out for exception, then I say with the last speaker that this is not the way in which the industry ought to be dealt with.
If we feel that there must be a national industry for sugar beet, if it is imperative for the national well-being that we should grow our own sugar beet and make our own sugar, then certainly we should so arrange our scheme as to make quite certain that that industry was to be national in the complete sense of the word, and that any advantages which might accrue from it would come to the nation as a whole. Hon. Members have said that in creating this industry we are creating a great national asset. It is just as well that we should not hoodwink ourselves with phrases. What do hon. Members mean when they talk about this new industry becoming a great national asset? They mean simply this that by means of public money there is to be created, not a great national asset in the sense that it belongs to the nation, but a very valuable asset which is to be the property of certain private persons. That is not the real conception of a national asset. It is as well that we should realise what enormous sums are involved in this particular scheme. I dwell upon this because I happen to represent a constituency where the people are living down on the bedrock of poverty and every additional 1s. of taxation is of great importance to them. How much public money are we going to put into the pockets of a comparative handful of private persons? We are to give them £500,000 the first year. It may be double that amount the second year, and, as the hon. Member for Greenock (Sir G. Collins) pointed out, it may, by the time the fourth year is reached, be even £6,000,000 or £7,000,000.
You get half that back in Excise.
I admit that, and it reduces my argument to that extent. But even so, I submit that, while poor people are living in the state in which they are now while taxation is as heavy as it is, even £3,000,000 or even £265,000 is no light matter. Certainly we cannot afford to put that amount into the pockets of certain private speculators and landlords.
Will the hon. Member say what he estimates it would cost the State to run the industry?
That does not arise out of this discussion. It is notorious to anyone who has studied politics at all that subsidies have a particularly corrupting influence. I do not know whether hon. Members know much about American politics, but if they do, they must realise that there has been a tremendous amount of jobbery in American politics because of operations of this sort. I have discovered in the genesis of this particular scheme a good deal of evidence of something which seems to me to be bordering on jobbery. There has been a great deal of canvassing and lobbying on behalf of this scheme. I have had invitations to make trips to visit places; I have been offered free luncheons, and other people have been subject to the same kind of thing. I find in the directorates of these particular companies some rather interesting facts. As my hon. Friend has pointed out, that great friend of the people, Lord Weir, is a director of two of these concerns. I find that the hon. Member for Ayr Burghs (Sir J. Baird), who has been supporting this scheme very strongly, is also a director of two of these companies, and I know that other hon. Gentlemen opposite, who have been speaking very warmly in favour of these proposals, are connected with the directorates of these companies. That is a consideration which ought to be borne in mind by Members of this House. They ought to realise that the fervour and enthusiasm with which these hon. Members speak may not always be borne of the purest kind of desire to serve the public wellbeing.
Take the amount of the subsidy. I am told that even those people who are supporting this project have been astonished at the generosity of it. My hon. Friend has dealt in detail with this particular aspect, and has shown that we are giving a subsidy which is equivalent to 100 per cent. of the cost price of the article in question. From my own computation I find that the landlords are to get anything from £10 to £20 per acre as a result of this scheme. The OFFICIAL REPORT which was issued in 1922 gave the figure as nearer £20 than £10. Therefore, you can see that there is a very good reason why the farmers and landlords of this country are welcoming this scheme with open arms. Here is another striking fact. I remember that as I listened to the Debate in the last Parliament there was keen opposition from someone who is no longer a Member of this House—Sir Leonard Lyle. He objected to it very strongly as conferring altogether too much advantage on this new industry. I am astonished to find now that Sir Leonard Lyle has gone into the new busi- ness. Apparently the temptation was too great for him; he saw a good thing, and he could not resist getting into it—all at the expense of the public. I want to say, especially to my leaders on the Front Bench, that one thing which ought to make them think very hard over this matter is the praise it has got from those people who are openly and avowedly Labour's worst enemy. Whenever that kind of thing happens we need to examine a particular project with the greatest care and circumspection. I find that an hon. Member on the other side of the House said this:
I said the contemplated factories would involve that increase in employment.
Yes, the right hon. Gentleman was referring to the factories which were in contemplation. Another extraordinary argument was employed by the right hon. Gentleman the Member for Ayr, and I wish he were in his place. He spoke of the total amount of raw sugar which was needed by the industry. He asked us to assume that there was no home production of sugar at all and said that then we should require a quantity of raw sugar which at the price of 15s. per cwt. would amount to £24,000,000, and he also said the amount of labour value which would be involved in the conversion of that raw sugar into refined sugar would amount to something like £1,000,000. He went on to say that we should have to send out of this country £24,000.000 and in return we should only get £1,000,000 worth of labour. Surely that is the logic of the nursery. I am certain, if he were in his place, the right hon. Member for the Colne Valley (Mr. Snowden), as a convinced Free Trader, would not look at that argument for a moment. if we have to pay £24,000,000 for sugar imported into this country, it is the sheerest common-sense that we do not pay that money to other countries in hard cash, but in the ordinary way of trade. We pay that money in manufactured articles, raw materials and shipping, and, in all those ways, we provide a great deal of employment for our workers. That, apparently, was not taken into consideration by the hon. Member when he made the statement to which I have referred. I hope we are not going to be misled by all this talk about the small number of agricultural workers who are going to be provided with work into forgetting the large numbers of other workers who, as a consequence, may lie put out of employment.
In regard to the finance of the scheme. I observed the other day that the right hon. Gentleman opposite, in reply to a question, said that at the present time there was only £500,000 of foreign capital invested in this industry. It may be that in the course of time that amount will grow, but here it is at the moment at the figure I have mentioned. By means of this subsidy from the public purse it is extremely likely that, for a time at any rate, companies engaged in this industry will be able to make large dividends. They may make 25 per cent.; they may even make 50 per cent., and it will be very gratifying to the taxpayers of this country to think that their money is being taken from them by means of taxation and is being put into companies which are going to provide large dividends for foreign capitalists. We are not internationalists so far as the capitalists are, concerned. There is another point which shows how skilfully the finance of this scheme has been engineered by the people connected with it. The public has put into these companies—into home-grown sugar at any rate—a considerable sum of money. It has been written down, but we still hold, I think, £65,000 worth of shares. There is an extraordinary provision in the articles of association. The public has taken a risk and it may lose its money. If it loses its money in the ordinary course of business it will have nothing to complain of, but here is the position. If the concern went down that public money would go. If the concern succeeds and contrives to make large profits, the public is not then going to get the benefit. Those concerned may pay 50 per cent. upon the private capital invested in this concern, but, so far as the public money is concerned, if at any time the company becomes so prosperous as to be able to pay a large dividend, it can buy out the whole of the public shares at a nominal value plus 5 per cent. for the time during which it enjoyed the use of the public money. It is a case of "heads we win, tails the public loses." That kind of finance is not justifiable by any Government.
There may not be any particular quarrel between the town and the country. I do not think there is any clash of interests as between the agricultural workers and the urban workers, but we are not now so much attacking the agricultural workers as we are attacking the landlords and the private capitalists. You have no reason to ask the urban workers of this country to bear additional burdens for the sake of the private capitalists and the landlords and the farmers of the country. The town workers have no reason to have any soft corners in their hearts for the farmers of this country. I do not wish to say hard words about the farmers, but I shall be perfectly frank. It is well within the memory of the town workers and all the workers of this country that during the War, when conditions were favourable to them, the farmers of this country profiteered to the utmost extent. They did not scruple to extort out of the needs of the workers in the way of foodstuffs, the highest possible prices, and there is no particular reason why we who live in the town should go out of our way to help the farmers to make large profits. The real thing necessary, if agricultural workers are to be put upon a better basis, is not to start a scheme of subsidies such as this, but to tackle the whole iniquitous land system of this country. Let us free the farmers from the fettering control of the landlord and let the farmers make themselves efficient in carrying on their industry. Let them keep proper accounts—which I believe they have not yet learned to keep. Let them do these things, and they will be in a position to pay agricultural workers decent wages and to assist the "back-to-the-land" movement in which we all believe. I sit down repeating-that I oppose this scheme in the name of the taxpayers and consumers of this country. I believe it is a particularly audacious and nefarious attempt to plunder the public purse for the benefit of a small section, and for that reason I strongly oppose it.
There is a good deal of opposition to this Bill and as the representative of an agricultural constituency I rise to say a few words in its favour. It is because I believe that the Bill, if passed, will be of real benefit to agriculture and certainly will be of benefit to agriculture in the district which I represent, that I propose to support it in the Lobby. There is no doubt that it will be of great advantage to introduce a new crop which has been proved to be cultivable in this country and it will be of advantage to introduce a crop of the kind known as a cleaning crop which helps to develop the land in which it is grown. Above all, I think the benefit to agriculture will be great because we have here what, we have not had before, namely, continuity of policy. We have stability. The farmer gill be encouraged to grow his crop with the certain knowledge that he will get a price, which I hope will pay him, and which, in any case, is fixed for a term of years. In recent times there has been a greater demand for sugar all over the world. This no doubt is due to prohibition in the United States, which has produced a great increase in the consumption of sugar. Scientific friends of mine have told me, what I consider to be a very interesting fact, that actually every individual has to have in his system a certain amount of alcohol, and if he does not take it in the actual form of alcohol, he takes it in the form of sugar, which is converted in the system, by some physiological action with which I am not familiar, into alcohol. I believe that to be a fact. I believe that is what is known as metabolism, in scientific language, but the real truth is that every one of us who eats sugar is apparently owning a sort of illicit still, and it is a very dreadful thing to think that even the hon. Member for Dundee (Mr. Scrymgeour)—I say it with all respect—is actually conducting, for his own consumption, a sort of illicit distillery!
I think that the economic conditions to-day are favourable to the establishment of this industry to the extent that there is an increased demand for sugar, but, on the other hand, there are certain factors which are not favourable, and these are in the main that farmers are said to be very conservative in their views about new crops, that there is a heavy Excise Duty, and there is a highly organised import system. These things have not been met in this country as they have been met in other countries, where a success has been made of this industry. The heavy Excise Duty is going to be met to a very considerable extent during a term of years by this subsidy, but while the subsidy will help an infant industry, I think the industry will have time to grow lip in the course of 10 years, and, with a slowly decreasing subsidy, it ought to be able to stand up and he full grown and able to take care of itself at the end of that time. Something has been said about the Government having an interest in the capitalisation of these sugar factories, but. I think it will be just as well to leave the Minister to deal with that point. It seems to me that the Government subsidy is only for the time during which it is believed to be necessary to establish the industry, and at the end of that time there is no idea of having any subsidy at all, and while there is no doubt something to be said against subsidies, there is this to be said in favour of a subsidy, that you have always got the subsidy before you, and you are apt sometimes to overlook or forget a remission of an Excise Duty.
As far as I am able to get information on the subject of refineries, I understand that nearly every new sugar factory which has been established in the United States has added to it the full machinery for refining, and I believe it is economically much the best way to carry the process right through. With regard to machinery, I am very glad to see that there is a certain discretion in the power of the Minister, because, although one wants to see the manufacture of sugar machinery in this country, one wants to see this industry started with the best chance of success, and there will be a considerable amount of machinery which is certain to be produced in this country, things like engines, boilers, shafting, and all that sort of thing, and I think it is important that the Minister should have a discretion to allow a certain amount, and, if necessary, a very considerable amount, of machinery to be imported from countries where they know how to make it in the best possible way. May I say, in conclusion, that I welcome this Bill, because it seems to me that it is a far-seeing Bill. It is looking forward to the future, and it has, therefore, a quality which, I must say, has been lamentably absent from a great deal of the legislation of recent years.
The discussion on this Bill to-day has been characteristic of previous discussions in this House for the last 12 or 15 years. During that period the advantages of beet cultivation have been put before the House from time to time, and by no one more consistently than by my hon. and gallant Friend the Member for Eye (Colonel Courthope), who, throughout the whole of his career in this House, has been a devoted friend of agriculture. He has shown his belief in these schemes not merely by talking about them and, if I may say so, investing in them when subsidies were available, but he backed his opinion in the old days by money at a time when it was a very risky experiment to make. He showed his enthusiasm for beet culture as a method of improving our agricultural system when other people knew little or nothing about it, and there were none of the organisations which now press on Members of this House the advantages of subsidised industry from almost every quarter.
The hon. and gallant Member for Westbury (Captain Shaw), who delivered a maiden speech earlier in the Debate, put the case for this subsidy as well as it could be put, if I may say so, and with a clarity that left nothing to be desired. He practically made the case that you could not carry on a beet industry in this country without State aid, that it was impossible to do it on ordinary commercial lines. That was exactly what we felt as far back as 1912, when the whole of the case came before, the Development Commission, and, if my memory serves me aright, that Commission decided that a sufficiently strong case had been made cut for an experiment. The experiment was made at Cantley, and after a year or two of trading and cultivation there, the Cantley Company ended up, I think, with a loss of about £50,000. When the Development Commission inquired into it, they decided that, in their opinion—and they were a perfectly impartial body, with no political bias, so far as I know, and they have certainly never shown any throughout their career—out of that £50,000 only £11,000 could be, attributed to the experiment and education. They, therefore, made a recommendation that a grant for that amount should be made towards this deficit of £50,000. Then, a little later, a suggestion was made that there should be a large capital grant for the purchase of the Kelham estate, and I think the proposal then made was that £150,000 should be advanced, that the State should receive 5 per cent. on the money, and that the company should hold that estate in trust for the Treasury. I hope hon. Members above the Gangway who have been supporting this scheme will bear in mind that it was a Liberal Government that provided that, when money was to be found out of the Treasury, the property should be held in trust for the Treasury, and was not to be handed over to any private company as their capital property.
That brings me to the first point that I wish to make this afternoon, which is this: that the subsidy is to be handed over to the beet cultivators and the beet factory companies with none of the safeguards which were suggested by the Development Commission. We have no safeguard about the property being held in trust for the State. If there are to be profits made out of the subsidy, certainly, with a subsidy of twopence for a commodity which costs twopence to grow, there is a strong case for the State being safeguarded. There is no such safeguard in this scheme, and, furthermore, if it actually succeeds, we know quite well that, like the subsidy under the Corn Production Act, it will rise higher and higher, year by year, until it becomes a heavy burden for the Treasury to bear. If that total sum becomes so heavy that the Treasury rebels under it, agriculture kill find itself in exactly the same position under this scheme as it was in under the Corn Production Act. That Act at the time was very popular in the House. I was rash enough to oppose it on its Second Beading, and at many of its stages, but the view which I ventured to put forward in the House then was accepted by agriculturists only a few years afterwards because they realised that, if agriculture had to depend on such a precarious source of income as such grants as might be made from the Consolidated Fund, its position was hound to 1, e precarious. The beet industry will certainly be precarious if it is to depend to an enormous extent on subsidies provided by this House. I, therefore, would suggest that it is not going to be such an unmixed blessing to the agricultural interests as some people understand.
Then, in the second place, under the Corn Production Act the subsidies were accompanied by advantages which were to be brought to those who worked upon the land. The argument put forward again and again in the House was that the ground for setting up wages boards and for agreeing to a minimum wage was that the State was making a large contribution towards the income of the farmer. There is no provision of that kind in this Bill, and, if it was actually drafted by my right hon. Friend the late Minister for Agriculture, I would like to know why he was so retrograde as to have departed even from the standard set up by his Conservative or Coalition predecessors and provided for a large subsidy to this industry, without any safeguard being made for the well-being of the working men who would be engaged in it. The right hon. Gentleman cannot escape responsibility in this matter. The Corn Production Act undoubtedly did provide some safeguard against the farm labourers being exploited. Under this Bill, as my right hon. Friend drafted it, there is no safeguard for the agricultural labourer, there is no provision for a minimum wage, and there is no setting up of wages boards with compulsory powers. [ Interruption. ] It was again and again stated across the Floor of the House—and those who were in the House know well—that that was regarded as a quid pro quo, and when the subsidy was withdrawn the nature of the wages boards was entirely altered. I noticed that the Minister for Agriculture leaned heavily upon his predecessors, and he was quite right. From a House of Commons point of view, he undoubtedly did the right thing. He had the full advantage of the support of the Financial Secretary to the Treasury, who only on the Committee stage is going to do what he can to fill up the gaps left by his right hon. Friend sitting next to him. I hope we shall see how far he is going to carry his principles into practice when we come to the Committee stage of this Bill.
7.0 P.M.
Let me point out also that, in so far as the benefits to agriculture are concerned, they will be partial. There will be no such general assistance given to the agricultural industry as will he given to this particular specialised section of it. Therefore, the Members for agricultural constituencies had better be stirring their brains to find whether they cannot, under a subsidy system, bring some benefits to their own constituents. I can understand the right hon. Member for North Norfolk (Mr. Buxton) being warmly interested in this, for, if my information is correct, his constituency contains one of the factories. At any rate, he has always spoken of it as a great Norfolk concern, and one can easily understand his devotion, as a Norfolk man, to it. That is what always happens under a system of subsidies. Every district interested naturally supports it—it is the most natural thing in the world—in the same way as my hon. Friend the member for Greenock (Sir G. Collins) finds it necessary, here in this House, to state the refineries' case, and so you have the various constituencies competing for or against this scheme because of the division of what, for want of a better word, I might call the swag. There is something doing. They want be in it. They want to point out that, if other people get some advantage out of it, is going to injure the interest of the constituencies they represent. The truth that you cannot devote large sums c public money by way of subsidy in the aid of some industries without injuring others. It is not only a partial benefit it is very often a damaging and injurious act against other industries. How man. will be affected by the subsidy to bee sugar grown in this country I cannot say offhand, but already representations hay, come to Members of the House by way of circulars and deputations here and a meetings of organisations outside which show that a very large number of industries believe that they will be indirectly and adversely affected by the payment of this subsidy for the growing of bee sugar.
I want to put one further point, are I am glad to have the privilege of doing it in the presence of the Prime Minister The Minister of Agriculture urged this proposal to-day, I understand, of much on the ground of cultivation as or the ground that it would absorb a large number of the unemployed. He did no tell us exactly how many of the unemployed he expects it will absorb under the present scheme, but on a generous estimate it will absorb 20,000. The number of unemployed in the agricultural industry is not so great as in some other industries The trade figures show that it is love it the agricultural industry than in other; of the great competitive industries. It is probably at its highest in the iron and steel industry. It is very nearly at it, highest in coal. If a case can be made out for beet sugar, a far greater case car be made out for coal.
I do suggest to the Prime Minister that if his Government are going to adopt the policy of my right hon. Friends below me—the late Minister of Agriculture (Mr. Buxton) and the late Finanical Secretary to the Treasury (Mr. W. Graham)—of absorbing the unemployed by granting subsidies to private concerns, they will find a much more profitable field for the investment of the national money by giving assistance to many coal schemes which have been put forward inside and outside the House. The Prime Minister knows well the defects of the system of low temperature carbonisation. Yet if that could be put on a profitable basis, it would mean keeping alive British collieries which have been closed down. It would mean the production of very cheap power over large areas of the country, which could be developed by that cheap power and a quarter of a million a year rising, as it may, to two or three milions a year would, if devoted to low temperature carbonisation, absorb a far larger number of unemployed in the coal industry than could ever be done by planting down beet factories and the cultivation of beet in the agricultural areas. The Government are opening the door to a system which lends itself to very grave abuses. They have done so without safeguards for the public interest, and I would ask them, when dealing with subsidy proposals in the future, not to confine their attention to one special case advocated with great enthusiasm by men engaged in it for 15 years, but to examine other cases which are of a much more pressing nature. They should put public money to the best use at the present moment, and should not favour private enterprise without taking into account the public interest.
I should like to thank the right hon. Member (Mr. Runciman) who has just sat down for his generous remarks about my own efforts. I feel rather ashamed, in view of what he said about me, to try at once to tear up the arguments which he has just used. He will not misunderstand my motive. I think the arguments we have just listened to are false from beginning to end. We have had an analogy drawn between the proposed sugar-beet subsidy and the subsidies proposed in the Corn Production Act. There is no comparison at all in my view. The whole basis of the corn production subsidies was that they should be permanent. At all events, they were guaranteed over a period of years, and they were intended as a permanent part of the agricultural system of this country in order to maintain the production of wheat and other products. Also, the corn production subsidy applied to an industry well established and well understood. On the other hand, this proposed sugar-beet subsidy is asked for and justified and offered merely on the basis that experience in every country has shown that there is a very difficult development period during the establishment of the sugar-beet industry, and that the infant industry requires nursing. We who advocate the industry have never suggested that the sugar-beet industry cannot stand on its own feet when once it is developed and established. Personally, I firmly believe that it can, as it does in Holland. It was established in Holland by protection on somewhat analogous lines to the proposals made here, and after the development period, it could stand successfully on its own feet. So, we believe, it will prove in this case.
There is one other point the right hon. Gentleman made to which I wish to refer. I think his statement was more a criticism of the speech of my right hon. Friend the Minister of Agriculture than a general statement, but he said that this subsidy was advocated more on the grounds of the employment it would give than from the point of view of cultivation. I venture to say that those who have interested themselves in this industry and studied it have placed the whole of their argument on cultivation. It is because we believe that the introduction into our arable rotation of sugar beet as a cleaning crop which pays its own way, and, more, it is because we believe that it will lower the price at which it is possible for our arable farmers to produce wheat and barley, that we have been advocating it at all. It is not a sugar question to the farmers of this country; it is a wheat and barley question. As the right hon. Gentleman said, I was one of those who took it up in the early days. I may say it was simply for that reason; it was because I was seeking a cleaning crop that would pay its own way and remove one of the greatest obstacles to the production of wheat in this country that I took up sugar beet at all.
Let me now deal with the speech of the hon. Member for Greenock (Sir G. Collins), who, I am glad to see, has just returned to his place, because I should have hesitated to say what I am going to say behind his back. He spoke on behalf of the refineries, and he said that their case was so good that it did not need to be stated. I venture to say, and I hope he will not think I am doing so in an offensive manner, that their case in this House would have been very much better if he had not stated it to-day, because he based his argument upon a certain amount of misstatement—I do not say deliberate—of incorrect information, and continued it upon very varying contradictions with one or two of which I should like to deal. In the first place, he based his argument on behalf of the refiners against this proposed subsidy on the suggestion that the subsidy was to set up a new set of refineries which would compete unfairly against the existing refineries. That is not the case, and this House, if it appreciates the position of the sugar industry, must understand that it is not a question beween combining a refining process and a manufacturing process under one roof; it is a question of eliminating the refining process altogether.
In these modern sugar factories, the sugar is not refined in the technical sense of the word at all. Means have been found of producing a consumable sugar—Continental granulated is its ordinary term—of high polarisation without refining at all. You cannot do it everywhere. Climatic conditions prevent it in some parts of Europe. Probably that is the explanation why in parts of Czechslovakia the old-fashioned system of manufacture in one factory and refining by a quite distinct process is being maintained. All the northern part of Europe has found it possible to produce this consumable sugar, granulated sugar, by a continuous process without the expense of handling from one process of manufacture to a second process, that of refining. I think it is the accepted view of those who have had experience of the matter that this is the most economic method of producing the consumable sugar in those countries which permit it at all. I have heard—I do not know whether the hon. Member for Greenock said so to-day or not—our assertion disputed that the economic method of producing granulated sugar is by the continuous process. The old-fashioned system was that of manufacture by one process and refining by another, either in the same building or another, and the economic conditions compelled the beet sugar manufacturers of France, Holland and Germany to adopt that old-fashioned method and produce raw sugar only. But the economic pressure now is in exactly the opposite direction. It has induced country after country to tend towards this continuous process, which we should adopt in this country.
If a permanent system of subsidy were introduced, it might be arguable that it did not very much matter to the agriculturists here whether the most economic process was used or not; that it might be well, in order to avoid problematical injury to the sugar refiners, to encourage the production of raw beet sugar instead of granulated beet sugar in this country. But the whole thing is proceeding upon the assumption that the subsidy is to be temporary, and is to end about nine and a half years from now, and that then the factories established under the subsidy, and with its help, will have to face the keen competition of the Continental manufacturer unassisted, and it is unthinkable that any but the most economic process of manufacture should be adopted in this country, because it would fail directly it was, unassisted, face to face with the keen competition of the Continent. So whichever way you look at it, I think we must come to the conclusion that the late Government and the present Government are right in proposing to give the subsidy to the finished granulated sugar, rather than to encourage the production of raw sugar only. There were several other statements made by the hon. Member for Greenock to which, I think, I must refer very briefly. He stated that up to, I think, 1922 a factory had lost £15,000,000.
If I said £15,000,000, I apologise. My notes were £15,000.
I was sure it was a mistake. The figures were very much larger than £15,000, but the factory has now turned the corner, and it is making to-day handsome profits. I have heard criticisms made from those benches that, owing to the subsidy, the Cantley Factory will make enormous profits. I think very likely it will for two or three years, because it has got over its development difficulty, but, up to the present, it has never been able to pay a dividend. It has not yet writen off the losses of its earlier years, and the very fact that in early years a factory which, later on, is capable of making large profits suffered heavy losses is a proof that it takes years to tune a, factory up to concert pitch, and not only the factory, but to tune up the production of its raw material, the sugar-beet crops of the surrounding land. These factories which are going up to-day, I am quite convinced, in spite of the subsidy, must make a loss in every case in the first year, and probably in the second and third years also, and then they will reach the point when profits begin to come in. I believe that the subsidies proposed, so far as one can anticipate the movement of world sugar prices, are about the minimum which will enable the industry to be successfully established in our agricultural districts. Of course, those factories which are now in existence will make profits before the new ones, but those profits have to be set against losses in the past.
I must apologise for having made one or two statements to-day which I have already used in this House, but I hope I shall be thought justified by the speeches to which I have been endeavouring to reply. I do beg the House to regard this subsidy proposal as a very necessary assistance to the establishment of an industry which may mean something tremendous to the arable districts of this country, and which may mean a great deal to the security of this country so far as an essential food supply of the future is concerned. I hope we shall hear no more of the suggestion that a party of Tory landowners is subsidising an industry because it will benefit the owners of land in the sugar-growing districts. I do not think even those who make such statements can seriously believe they can he justified.
If I needed justification for opposing this Bill, the last speaker would have settled the question, and compelled me to oppose it. If the sugar-beet factory is doing well now, I see no reason for the subsidy, and if it is desired that a subsidy should be given so that the sugar-beet industry will admittedly make a profit, I think it is asking rather too much. I have listened carefully to the speeches delivered to-day and on the last occasion this question was discussed. The right hon. Member for Swansea referred to the dangers underlying this question, and I agree with him. Another hon. Member has declared that the sugar-refining industry will be in a dangerous position if this Bill is passed, and we have been warned that, in the event of this Bill passing, thousands of men will become unemployed through the failure of the refining industry. I believe that to be absolutely true. Then we had a speech from the hon. and learned Member for Argyllshire (Mr. Macquisten) on the last occasion, and he said that you have unemployed engineers going about the City of Glasgow, and here was a method by which you could employ them. In the constituency I represent, we have five engineering firms all dealing in this sugar plant. Therefore I am going to cancel the position, because I do not see any benefit in throwing men out of one occupation so as to put men in another, and I suggest that we ought to deal with the question of the right or the wrong of subsidies. If I wanted justification I would turn to a statement of the Earl of Denbigh as to co-operative action between the farmer on the one hand and the factory on the other. I would agree if the Earl had included the State on the one hand and the consumer on the other, but he is quite content with co-operation where the factory is dealing with a State subsidy, and the farmer is also getting the benefit of those conditions.
I am going to make a suggestion to the Minister. He can remove a great deal of opposition that exists on this side of the House—because many of us are in varying disagreement with the Front Bench—if he will adopt this suggestion. If not, it will be our duty to see it is raised in Committee. I believe we ought to have State control when the State endows an industry with a subsidy of this kind. I do not expect we are going to get that. Therefore, I suggest, as an alternative, that where a firm or person engaged in the industry has received a subsidy, and after the expiration of the subsidy years he shuts down his factory because of the absence of profits owing to the removal of the State subsidy, the State should take over the factory, without compensation to the supposed owner. I think we are entitled to do that. I think we are entitled when we understand from one of the last speakers that men like Lord Weir and Sir Leonard Lyle, one of the bitterest opponents we had in this House, are joining up. We want some safeguard, and I believe this suggestion would be a safeguard so far as the future is concerned.
I am afraid that, on behalf of the Government, I certainly cannot assent to the suggestion just made by the hon. Member, that in the event of private enterprise finding it unremunerative to continue these factories after the end of the subsidy period, they should be taken over by the State. We have lost enough already by our incursion into the domain of sugar enterprise.
Are you sure it will not be successful?
That is quite a different point. I think it would be a very bad bargain for the State to take over an industry which, on the hon. Member's asumption, is derelict, and run it, presumably, at an even greater loss. I am not concerned to prophesy what is going to be the future of this industry, and, indeed, my task this evening is considerably lightened by the astonishing way in which hon. Members above and below the Gangway have gone on all the afternoon contradicting each other. Perhaps I may take some of their points in turn. The right hon. Gentleman the Member for West Swansea (Mr. Runciman) made a very interesting speech from the Free Trade point of view. He developed his objections to the system of subsidies on the ground that if you benefit one trade you, almost of a certainty, injure another. But I think he will remember from his experience at the Board of Trade that this difficulty is not confined to protection duties, and that year after year almost every kind of change brings about indirect damage to some industry or the other. When you put a new import duty on some articles you are faced with a difficulty that producers who use that article in the course of their production for the foreign market are hurt in the process. New import duties are continually changing the channel of your traffic. In many cases you run the risk of entirely destroying an old-established industry. I only want to suggest to the right hon. Gentleman that these difficulties—and they are admitted—are not confined to the cases of protection duties and subsidies. There was one inconsistency in the speech of the right hon. Gentleman which perhaps I might point out. He began by referring to the interest of the right hon. Gentleman who was responsible for this scheme in the last Government as representing an agricultural constituency—practically the agricultural labourer—and he pointed out that there was likely to be a certain pressure from agricultural Members to improve the position of this industry by having factories built in their areas in the interests of their constituents and at the cost of the State. The right hon. Gentleman ended up his speech by an eloquent claim for State assistance for the coal industry, and I believe the coal industry has an interest at Swansea not less than the sugar industry in Norfolk!
I did not make a claim for the coal industry, or the people thrown out of work; but I pointed out that the money expended on this scheme, if it was directed towards the unemployed in the coal industry, would, in fact, absorb a larger number of men than it would in the sugar industry. I put in nothing in the nature of a claim for the coal industry.
The right hon. Gentleman the Member for Central Edinburgh (Mr. W. Graham) made also a very interesting speech in which be suggested that his party would like to see the nationalisation of this new sugar-beet industry. If nationalisation were adopted, so far from helping to solve the problem, it would probably throw a large permanent charge upon the State. We had a sad experience of what may be involved in the State trying to link itself up to an industry in the control of the sugar industry during the War. The State fixed the prices for the sale of sugar far below cost, and that involved it in a loss of over £20,000,000. I do not think that the present House, at least, would wish to repeat that experiment. The right hon. Gentleman went on to say that it was unreasonable that we should give a guarantee to a private industry of this kind, seeing that no private capitalist would do the same; but the case of the private capitalist is not really a parallel case. In the case of the State it has a very definite advantage; the helping of an industry may lead to the alleviation of unemployment and may also increase the resources which the State can tax. In answer to the hon. Member for East Ham South (Mr. Barnes) and in common justice to Lord Weir I think I should point out that it is not true to say that Lord Weir came into this industry lured by the temptation of the subsidy. He came into the sugar business in March, 1924, and made arrangements for putting up a factory at Colwick before any subsidy was ever talked about. The hon. Member for Shoreditch (Mr. Thurtle) suggested that the subsidy was much too large. He said that it was much more than the State need to give to establish this new industry. I would remind him that the losses of which we have been told this afternoon took place under far more favourable arrangements than the new subsidy of 19s. 6d. In 1916 the comparable benefit under the old sugar duty was 25s. 6d., and that that was not sufficient to ensure the pioneer establishments against loss. The truth is that you cannot establish this new industry without State assistance, and that is the universal experience of our European competitors. The reason for that is that you have to convert farmers to growing a new, and, to them, difficult crop. You have got, in the first years, to face undue overhead charges until you can get a sufficient acreage grown. Kelham, I understand for this reason can only turn out about half its normal production, and naturally until you can use your factories to their fullest capacity you must expect unfavourable trading results. Farmers have had no experience of getting the best yield. As the years go on they will probably add an extra half ton per year to the yield per acre, and year after year after their initial experience, they will also get a larger percentage of sugar.
I must confess I have very little sympathy with the arguments advanced on the other side of the House. The only case which has caused me any anxiety is that put forward with such conviction by the right hon. Gentleman the Member for Greenock (Sir G. Collins) on behalf of the refiners. We all admit that the refiners are going through a very difficult time. My right hon. Friend has explored every avenue to try and find some way of avoiding further losses to that great industry. He has tried to adjust their interests with that of the new beet sugar industry. Unfortunately, however, no way has yet been found. The truth of the matter is that the hon. Gentleman the Member for Greenock is wise enough not to go into details of the proposals as to how to deal with the interests of the refiners, for you cannot really help them unless you give them some form of compensation.
Compensation can really only take two forms. Either you will give in some shape or form a preference on the importation of raw sugar, or, leaving the import duty on the present raw material perhaps untouched, raise the amount of the duty as against the refined product that comes into this country. Obviously, if we agree to such a proposal as that we should be accused of taxing food. Alternatively, we might help them by leaving the top of the scale at its present level of taxation, taxing the refined products as at present, and admitting the unrefined product on a rate of tax lower than it should be in strict proportion to the top of the scale, considering its sugar contents. If you put up a preferential rate it will amount to a bounty, and the Government does not feel itself justified in giving a bounty of that kind. A bounty is being offered to the sugar beet industry to establish what we hope may be a new industry and productive of employment, but that is a very different matter from giving a bounty to a well-established industry. I am really rather surprised that a confirmed Free Trader like the hon. Gentleman the Member for Greenock puts forward a plea of this kind.
On that point, may I say that I am for complete freedom of trade. I made no plea whatsoever for indirect or direct help, or for any peculiar advantage to the refiners. My only point was "Why should the Government subsidise another industry which is giving a bounty to the refining industry?" I should be glad if the right hon. Gentleman will address himself to that point.
I can only assure the hon. Gentleman that if the Treasury were to admit even an indirect claim for damage of this kind we should bring an avalanche of like demands upon ourselves. As a matter of fact, I do not believe that the refining industry is quite so badly off as he would have us believe, because really the new factories are not going to produce such a great amount of sugar as one might have imagined from his speech, when he talked of the necessity of £35,000,000 capital to enable the refiners to compete with this new industry. At the most there will be about 15 new factories. That is all that are in sight until the end of next season, and as the subsidy at the original high level will then be drawing near its end it is not likely the total will be augmented.
As to the position of the refiners, I should like to reassure the House by giving them figures. In 1913 the imports of refined sugar were much higher than to-day. They had reached 923,000 tons. Last year they were 599,000 tons. It is true that the consumption dropped from 1,681,000 tons to 1,541,000 tons, but still the margin between the consumption of sugar and the importation of refined sugar has gone up, to the benefit of the refiners, from 758,000 tons in 1913 to 942,000 tons at the present day. The hon. Member is no doubt anxious as to the supply of raw material. That, again, is well maintained as compared with pre-War figures. Whereas in 1913 930,000 tons of raw sugar were imported for refining in British factories, in 1924 the quantity had risen to 1,035,000 tons. I think, therefore, the danger to the refiners is rather exaggerated. They are a very strong, well-organised industry, and I feel sure that the enterprise which established them in so firm a position will enable them to surmount the relatively unimportant competition of this new beet sugar industry.
I shall detain the House only a few minutes, and I will at once say that I am bound to oppose the Second Reading of this Bill, not because it is a subsidy to any branch of agricultural enterprise, but because it is a subsidy to one industry at the expense of another. I hold very strongly that the State has no right to expend public money on promoting the interests of one particular enterprise when the results are bound to react disadvantageously to another important industry in this country. I do not want to repeat to the House the series of arguments I submitted when the Financial Resolution was before the House, but I maintain that the presentation of a subsidy almost equivalent to the value of the sugar to beet sugar growers is not an action that the State should take without very grave considerations of all the circumstances involved. I ask my right hon. Friend the Minister of Agriculture, who did a great deal to try to bring the conflicting interests together, why he was led so far away by the action of the right hon. hon. Gentleman opposite, who was responsible for all this trouble. The right hon. Gentleman opposite thought he had found a complete solution of the rural problem of this country. He delivered a very remarkable speech, in which he exalted beet sugar to the high category of being one of the means of the economic salvation of this country. We all recall that wonderful speech which the late Chancellor of the Exchequer made, but the real misfortune is that he has landed the present Government into the difficulty of having to redeem the promises he held out to the agricultural community, It is all very well to preach economy in this House, and to talk of bringing down taxation, but how are you to reduce taxation if you are going to subsidise a particular enterprise on this high scale I have urged again and again that the proper function of these sugar-beet factories was the production of raw sugar, and I think they ought to receive the sympathy and support of the State in the discharge of that particular function, but that they should not be subsidised to put out of action, as they must inevitably do in the long run, a very large part of the present highly-organised, highly-developed and highly-capitalised sugar-refining industry.
My right hon. Friend (Mr. Wood) and the Financial Secretary of the Treasury emphasised the point that the sugar production of these factories will be so insignificant in the near future that it is not worth criticising the action of the government. But what was said on these benches when the Financial Resolution was before the House? Hon. Members interested in agriculture said emphatically, "Not 10 years, 20 years." Does anybody who has thought seriously over this question imagine you are going to put this industry on its feet, as a self-supporting enterprise at the end of 10 years? Not for a moment can one believe it; and therefore I think the Government is not merely taking an action which is unfair to a great industry in which millions of capital are invested, which employs large numbers of people, and which had to go through a most difficult and embarrassing time during the War, but that it is also doing an injustice to the general taxpaying community of the country by giving public money on a scale never heard of before in this country to assist the development of the production of sugar.
I would like to make one suggestion to my right hon. Friend which perhaps he will take into account. We made representations to him, while he was considering this Measure, that it might be advisable to consider how far beet-growing could be subsidised for the production of fuel alcohol. He will recall a certain statement which was submitted to him, and which, acting under the advice of his experts, he declined to accept. I would ask him whether it might be possible, even as an experiment in conjunction with this scheme, to allow one factory to be developed for the production of fuel alcohol under a system of subsidy such as is now to be given to sugar.
I am not opposing this Bill because I am out of sympathy with the effort to help agriculture in every possible way, but because it is unfair to the taxpaying community, because it does not in any respect indicate a tendency to reduce taxation, and because a, great industry is having its interests sacrificed without being given fair consideration. The right hon. Gentleman opposite never consulted the sugar refiners and never gave them an opportunity of stating their views when putting forward this scheme. What he did was to consult a distinguished Dutchman who is engaged in this industry, and who is responsible for the investment of a, considerable amount of foreign capital in this industry in this country.
indicated dissent.
I must accept the right boo. Gentleman's denial, but the right hon. Gentleman knows it is a fact that a great deal of this movement which has led up to landing my hon. Friends in the unhappy position they are in to-night—[ Laughter ]. Well, you have not got your Bill through Committee yet. They should be unhappy, if they were feeling properly in their own minds. No less than £473,000 of foreign money has been invested. We do not object to foreign money being invested in this country, but if the investment of foreign money means the introduction of foreign influence in making the taxpayer provide a subsidy for a particular enterprise, then I am opposed to it. I am opposed to the Bill, and I shall vote against it on Second Reading.
Question, "That the words proposed to be left out stand part of the Question," put, and agreed to.
Bill read a Second time, and committed to a Standing Committee.
Trade Facilities [Money]
Considered in Committee under Standing Order No. 71A.
[Sir HENRY CAUTLEY in the Chair.]
Motion made, and Question proposed,
"That it is expedient to amend the Trade Facilities Acts, 1921 to 1924—
This Financial Resolution, upon which we propose to found a Trade Facilities Bill, embodies no new principle. The House will remember that trade facilities are granted by way of guarantee to enable capital to be raised for undertakings, or for the purchase of articles in the United Kingdom required for those undertakings, in cases where it is shown that employment may be provided in the United Kingdom. Up to now the am omits guaranteed come to £55,000,000. The maximum authorised is £65,000,000, and we seek in this Resolution to raise the maximum by £5,000,000 to £70,000,000. That will give us £15,000,000 for guarantees during the 13½ months during which the amending Bill will run, namely, to the end of the next financial year. Judging by the rate at which guarantees have recently been given, we believe that £15,000,000 will be enough. But if the demand for guarantees should increase, and if the Trade Facilities Committee make out a case for further provision, the Government will not hesitate to come back to the House of Comomns and ask for a further sum. I do not think there is any new feature in the Bill at all, and as the present provision expires on the 31st of next March, I hope the House will give us this Resolution to-night.
There will be no disposition, I am sure, on this side of the Committee to resist the Motion of my right hon. Friend. We recognise that the course was inevitable, that there must be some extension of the guarantee in the near future, and I think we may well reserve any criticism to-night if I give preliminary notice of at least two points to be raised on the Second Reading of the Bill. First of all, I think there should be a frank statement to the House regarding losses, small as they are, under this scheme. Although they are infinitesimal in amount they occasion anxiety in some quarters. I think the House is entitled to a statement regarding the position of guarantees in the shipbuilding industry. When this question was last under discussion there was a tendency to extend these guarantees, but I do not think the position is now so favourable. It may be that the Government has revised its view on the subject. I gave notice of two points upon this important principle, and I want to know how far this policy of giving Government guarantees is going. We shall raise these points on the Second Reading of the Bill. We are committed to the principle, and I think this proposal is in the interests of employment. I think the House is inclined to agree unanimously to the financial Resolution.
I want to know what is the policy of the Government on this question of shipbuilding. Vast sums of money have been spent on the construction of ships in private yards upon cruisers, and no facilities whatever have been given for the construction of commercial ships in Government yards. I should like to hear the opinion of the Government on that point. I am aware that the present Secretary to the Department of Overseas Trade moved an Amendment some time ago to give these guarantees to private shipbuilding firms. I do not know whether the hon. Member still adheres to the same point of view.
As I understand the Financial Secretary requires this Resolution to be got through to-night I will not delay the Committee. I am not altogether antagonistic to this increase of the amount, but at the same time I wish to point out that the Financial Secretary to the Treasury, when he stated "he would not hesitate to come forward again" if more than this extra amount of £15,000,000 was required under the Trade Facilities Act, I hope it is realised by the Government that any increase in this amount, or actually this amount, must affect the credit of this country and come out of the savings of the people. First of all there is this particular point that all these amounts are only subscribed by the savings of the people of this country, and it is these savings that are put into these trade facilitity loans and other loans. By loans the Trade Facilities Act have the principal and interest guaranteed by the State; this means there is so much less for other securities or for the credit of our Conversion Loan.
I am sure the Chancellor of the Exchequer has looked into the question of the increase of this amount, but I feel that far more care should be taken of the credit of this country than the issuing of these millions of pounds from time to time under the State guarantee of both principal and interest. As I have already said, I am not altogether antagonistic to this particular increase, but at the same time I do not like it. Although I have nothing against the Advisory Committee, I do feel that some of the loans which have been granted under the Trade Facilities Act are not quite in keeping with real business methods even of this House. I feel that when a guaranteed loan is granted to a company that is going to be registered, that is, it is not formed yet, it is not business, and it is not right that we should give our credit to such companies. I will not discuss this proposal further now, but I should like to go more fully into the matter when the Report stage is reached.
In rising to address the House for the first time. I wish to say it is not my intention to criticise the Trade Facilities Act of 1921 nor to oppose the Vote now before the House. Personally I consider the Trade Facilities Act a good Act, and one of the best things that was done by the Coalition Government. We have reason to know that in the constituency which I have the honour to represent in this House, one of the largest firms in that division has been able to finance an enterprise which has kept several hundred men employed during the last 12 months, and is likely to keep them employed for many months longer.
It is not the Act I am concerned about, but the administration of it. In voting large sums of public money to assist enterprises and industries, it is necessary that the most scrupulous care should be taken to ascertain that the firms who received this money are doing all that lies in their power to assist themselves with or without the grant. I am perfectly aware that there is a committee of investigation for that purpose, and it is because I believe that all the avenues of investigation have not been explored which ought to be explored that I venture to offer a few points of criticism.
The first committee was set up under the auspices of the Board of Trade and it consisted of 11 members, three of whom were bankers. That committee entirely failed to function, and another was set up under the auspices of the Treasury, and they were all bankers. I consider the failure of these committees to draw the attention of the industries of the country to the benefits to be obtained under the Act is entirely due to the number of bankers upon those committees.
The next thing I want to call attention to is the excessive overhead charges in connection with firms which come within the purview of the Act, who have or may make applications for grants under the Act. The last annual report of the Federation of British Industries dealt with this question of overhead charges in connection with the firms that comprise the Federation, and they pointed out that there was a variation of 37 per cent. between the highest and lowest overhead charges in those firms. I say to this House that it is the duty of the Investigating Committee of the Trade Facilities Act to inquire into these overhead charges in a manner which they are not doing at the present time before applications are granted.
My third point is in regard to the amount of watered capital in the case of firms which come within the purview of the Act and make applications for grants. It is not my purpose to go into the details of the extreme cases, because we all know about them. In the North there is a firm which has increased its capital sixfold since 1917. I know of a shipbuilding firm which has given 14 shares for one, and an engineering firm which has given 20 shares for one. There is a firm on the Mersey who gave four pounds worth of script for every shilling invested. I do not want to go into the details of those cases, but I wish to draw attention to a case where they are giving two shares for one, and I wish to show how it works out and to indicate how firms which have drawn between £8,000,000 to £10,000,000 under the Act are not doing all they can to assist themselves in the resuscitation of trade or to obviate the necessity of coming here applying for large sums of money to assist them.
They do not get it.
They do get it. I know a firm which has given two shares for one, and I want to show hon. Members how this works out. In the firm I have in mind the £1 share stood at 12s. 6d. prior to the War. During the War boom, and the post-War boom, those shares ran up to 73s. This firm doubled their share capital, and the £1 share went back to 43s., and it now stands at 32s. or 33s. Therefore, anyone investing in those shares would get about 8 per cent. next month. That would mean 5 per cent. on the capital invested. I do not think 5 per cent. interest is exorbitant if interest can be justified at all, but to give the new holders 5 per cent., the old holders must receive 25¼ per cent., and these industries are trying to bear this high rate of interest and produce a normal dividend upon abnormal capital.
I want to inquire whether these firms are standing in to one another as they ought to do in order to obviate the necessity of applying for public money. I was speaking to a large ship owner the other day who is likely to place a contract for a 14,000-ton ship. We spoke about the wages and the necessity for reducing wages, and he laid two estimates before me. One tender was from home and the other, which was the lowest, was from abroad, and there was a difference of £21,000 between them. I asked him, "If you place the order abroad, what is going to happen?" He replied, "I suppose the ship will be built abroad." May I point out that something else would take place. The Dutch builders would construct the ship—
I appeal to the hon. Member to allow us to get this Vote now, because he can discuss all those points on the Second Reading. We do not wish to have a gap in these provisions, and I suggest that he should allow us to get this Resolution now.
I do not wish to obstruct this Vote.
I am anxious to ensure that there should be some genuine control over the operations of the Trade Facilities Act—
It being a Quarter past Eight of the Clock, further Proceeding was postponed without Question put, pursuant to Standing Order No. 4.
Married Women (Nationality)
I beg to move,
"That, in the opinion of this House, a British woman should not lose or be deemed to lose her nationality by the mere act of marriage with an alien, but that it should ho open to her to make a declaration of alienage."
I have little doubt that this Motion will receive considerable support in all sections of the House, or, if not the Motion itself, certainly I think the sense of the Motion will receive general support. If, in consequence of this Motion, which I hope will be passed, action is taken by the Government to remove some of the undesirable features now existing in the law, I feel that not only will the women of this country greatly appreciate what has been done for them, but that the country itself will have no cause to regret what has been done. If there is any prolonged discussion, or any real opposition to this Motion, it may perhaps, be because there are certain sections in the House who do not wish another Motion, standing later on the Paper than mine, to come on, and I think it will be more because of that that they may object or prolong the discussion on a subject upon which I think there is general agreement. I would remind those who may, possibly, object to the Motion of my hon. Friend the Member for Kingston-on-Thames (Mr. Penny), that they are only postponing the evil day, because I understand—
Perhaps I might point out that that later Motion is not in order, and will not come on in any case.
Thank you, Sir; I am very glad to know that. I will leave that aside, and go on to explain that by my Motion I was precluded from including a second part which it originally contained, and which applied to alien women, but I hope that the Home Secretary, when he is considering the Motion now standing in my name, will consider the essential corollary to it, which refers to alien women. Perhaps it will be within 'the memory of some Members of this House that, when I first put down my Motion, it had a second half, which, however, upon advice, I deleted, leaving the Motion as it now stands.
This subject is not a new one. It has been exercising the minds of the women of this country, and, indeed, the minds of very many men in this country, for a considerable number of years. At the present moment there are some 70 societies representing women and men in all of the Dominions and a great many of the Crown Colonies, and practically all of those associations have written to me saying that they would do what they could to support this Motion. I may say that they represent no particular creed and no particular party, but are of all creeds, all classes, and all political parties. I have here a letter from the President of the Australian Federation of Women's Societies for Equal Citizenship, and she assures me that for some considerable time they have been trying to get some measures passed in this direction. I have here a list of an enormous number of societies in the United Kingdom, as well as a list of societies throughout the whole of the Dominions and Crown Colonies, representing the women of all those places, who are strongly in support of an alteration of the law in this direction.
It will be within the recollection of many Members of the House that in 1922 a Bill was brought forward by Lord Danesfort, who was then a Member of this House. It passed its Second Reading without a Division, and, as I understand it, it embodied two very important principles. The first was that a British woman should have the right to retain her nationality when she marries an alien, and the second was that a foreign woman should not, simply by the mere act of 'marriage with a British subject, become a British subject. I should like to say that amongst the supporters of that Bill were my Noble Friend the Member for the Sutton Division of Plymouth (Viscountess Astor) and the right hon. Gentleman who is now Home Secretary. In 1923 a Select Committee of Members of the House of Commons and of the House of Lords considered this question, and took a large amount of evidence. It is significant, I think, that all of the five Members of the House of Commons were entirely agreed as to the absolute necessity of altering these laws in this country, but, unfortunately, the Members of the other House were not in agreement. The result was that no recommendations were made, but a very interesting Report was presented, and I think that any Member of this House who wants some interesting reading will be well advised to take notice of that Report.
As the law now stands, it distinctly penalises, in my opinion, a British woman who marries or desires to marry an alien. What I am asking is no new demand; it is merely the restoration of a right which women had up to 1870, but which they lost in 1870. Up to that time, a woman retained her nationality if she married an alien, and at the same time an alien woman who married a subject of this country remained an alien. Those were the two principles of the common law—firstly, that British nationality was something which could only he acquired by birth, and, secondly, that a British subject could not he discharged from his or her obligations, responsibilities and privileges as a subject of this country arbitrarily by the act of marriage to an alien. Alterations were made in these two principles of common law. The first was in 1844, by the Naturalisation Act, which stated that an alien woman, on marriage to a British subject, automatically became a British subject; and in 1870 the Statute of Naturalisation, in Section 10, stated that
Those, I think, were rather different days. In the days of 1870 and there abouts women held an absolutely different position from that which they hold at present. They were regarded, broadly speaking, and, I believe, legally speaking also, as the chattels and the possessions of their husbands, and their footing was an entirely different one from what it is at present. I think those days are long gone by. Now that we have women taking a very active, and I must say a very effective part in all spheres of this life, we have really no right to say that a woman shall not be able to decide to what country she shall belong. I think a woman has just as much right as anyone else to say she will remain, as she was born, a subject of Great Britain, even if she does confer upon a foreigner the honour of marriage. I do not say that she shall necessarily retain her nationality. I do not think the women of this country ask that. I think it may depend very considerably upon the circumstances of the case. I think she certainly should have the right to decide, when she proposes to marry an alien, to what country she should belong, but to say that we can arbitrarily dismiss from British nationality a woman who proposes to marry an alien is really an absolute scandal and is not in consonance with the general spirit of the laws of the country. It seems to me to be cheapening British nationality, and to be treating the women of the country, who are taking a very active and effective part in framing the laws and the governing of the country in every direction, with a very considerable amount of contempt.
There are certain cases in which a woman has no nationality at all if she marries an alien. Take the case of a British woman who marries an Argentine. She ceases, by the laws of this country, automatically to be a British subject, but she does not become an Argentine subject. She becomes an outcast with no nationality whatever. It is true that under the laws of the Argentine Republic she is entitled to, and I believe receives the protection and the assistance of the country to which her husband belongs, but she is not a national of the Argentine. She is not a citizen of the Argentine. The same thing applies in Brazil and to Chile. There is a very large number of British subjects about those South American States who marry and intermarry with subjects of those countries, and I think they are very unduly penalised by the laws of this country in the fact that they lose their nationality in this country, and in the case of Argentine., Brazil and Chile, they do not take the nationality of their husbands. A woman of this country who marries a citizen of the United States does not become a citizen of the United States until she has resided for a year with her husband in the United States. During the whole of that year she is not subject to the protection or to the relief to which she is entitled as a subject of this country.
There are other considerations which deserve a good deal of thought. Think what women lose when they lose their nationality, absolutely apart from the sentiment of the matter. Firstly, they lose their right to vote, which is held to be of considerable importance by some people. They lose their right to employment in the Civil Service. That I will not argue about. But suppose a woman teacher were to marry an alien, she loses immediately the right to her teacher's superannuation. She loses her right to the protection to which she is entitled by birth as a subject of the State, and finally, under the Versailles Treaty, if it is in time of war and the husband she has married becomes an enemy alien, she is liable to have her property confiscated.
I think the times are absolutely changing. You will see this from the direction in which the laws of other countries are going. For instance, in 1923 Belgium gave the right to women subjects who married aliens to retain their nationality if they so desired. In 1924 Sweden gave a similar right to the women of that country, providing they were living in Sweden or in any country except that of their husbands. Norway and Denmark are legislating on the same lines, but I have been unable to find out if they have yet carried those Measures. The last point is more important than any other, that not very long ago in Canada there was passed an Act which gave the right to a Canadian woman to retain her nationality if she married an alien, but unfortunately the gentleman who was responsible for the legality of these things was away at the time, and when he returned he found that this was not in accordance with the agreement which had been made between the Home Government and the Dominions, the whole thing had to be repealed, and women found themselves in the same state in which they were before. I think that shows what is happening, and what is the trend of ideas in the Dominions and in the Colonies. In the United States there has recently been passed the Cable Act, and I think the hon. Member for Dundee (Mr. Scrymgeour) will agree with me that in that country they pass a considerable number of laws which are worth following. Incidentally, this law was carried by 206 to 9. The principles it enacted were that a foreign woman who married an American should not become an American unless she so desired, and that she should have to reside in the United States for one year, and not five, as all other people who desire naturalisation have to. Secondly, it enacted that an American woman marrying an alien should retain her nationality, unless she desired to alter it and actually made a renunciation of nationality. There were certain other conditions which do not apply. I submit that this is a very fair and reasonable basis for an alteration of our laws in this regard.
I explained to the House that I was precluded from adding words to my Resolution which would put the opposite case, that of a foreign woman who married a British subject, but I think this is such a reasonable and such an indispensable corollary to the other matter that I hope the Home Secretary will seriously consider that aspect of the case. In that case there would really be no hardship to the man who married an alien woman. His wife would be eligible to become a British subject, providing she satisfied the authorities that she was a desirable person and fulfilled the conditions with regard to time of residence and things of that sort. At present I do not quite know what the Regulations are as regards the subject of another State who wishes to be naturalised here, but I think possibly, in the case of a foreign woman who marries a British subject, they might he curtailed in the same manner as they are in the United States under the Cable Act. But there would certainly be one very great effect if the law were altered in this respect also. It would have the effect of stopping abuses which are fairly common. At present undesirable women come to this country and they find that if they carry on the trade which they wish to, if they were aliens they would be liable to deportation so they go through a form of marriage with certain undesirable persons in this country. They become ipso facto British subjects, and under the guise of British subjects they carry on their nefarious trade and are perfectly safe from deportation. It is a regrettable fact that such British subjects are to be found, and in some cases I believe they are paid for going through this form of marriage. I think the Home Secretary would be very glad indeed if women of this sort were prevented from masquerading as British subjects and really cheapening British nationality to such an extent by plying their nefarious trade under the cloak of British nationality. The men who will so prostitute their nationality and sell their birthright are deserving of anything that may happen to them. When these women come to this country and go through the form of marriage with a British subject, they do not take the oath of allegiance in the same manner as any other person who desires to be naturalised. They are not required to comply with the conditions which are required of other people who apply to be naturalised. In a great many instances, their sympathies are anything but British. It is simply for the purpose of plying a trade which they cannot ply in their own country that they abuse the lax laws of this country, in order, perhaps, to prosper and retire and to enjoy their ill-gotten gains in the country of their birth.
I am aware that there are arguments against the Motion which I am putting on behalf of the women of this country, and also as regards the second part, which I cannot include. The first argument is based upon the very antiquated idea that the wife is the property and chattel of her husband. People argue that, if the husband and wife are of different nationalities, there is apt to be disruption in the family, or trouble at some time or other. Nationality need not be the only subject upon which a man and his wife differ. There are people who hold quite different religious views, who are married, and yet it does not always lead, in fact it very seldom leads, to disruption in the family. Very often the tastes of man and wife are entirely different, but they manage to live more or less happily together.
Very often the political views of man and wife are entirely divergent, but they manage to live happily together. I can tell the House of one particular case, where a man in my constituency walked several miles over the moors in order to vote for me. He was asked why he had not brought his wife. He demurred a little and said she did not want to come. Eventually, my representative offered to send a car for her, whereupon the man said, "No, I will not have my wife brought, because I do not wish to have my vote neutralised." To my own personal knowledge, that couple are living happily together. If political views, which at the present time make people rather angular or heated, do not make disruption in a family, why should nationality do so? I do not think that different nationality does necessarily mean disruption in the family. Before a man or a woman in this country marries a person of any other State, it would be far better for them to go thoroughly into the question of nationality, religion and so on, and come to an understanding, but, unfortunately, one cannot insist upon people doing these things. Therefore it is our duty to simplify matters for them and to ensure that there is as little disruption as possible.
In regard to the second argument, it is said that the law here is similar to that of other countries. That may be so, but is that any reason why when we find that our law imposes hardships on the subjects of this country we should not alter the law? Ideas are changing. In Belgium, the United States, Sweden and other countries they are changing the law in this respect and beginning to realise that women have rights other than that of voting. So far as the Dominions are concerned, there has already been passed in the House of Commons in Canada an Act which alters the condition of women in this respect. It is said that there is an Imperial agreement on which the law is based. If there exists an Imperial agreement and we find that it imposes hardship on the people, the sooner we get together and make an Imperial agreement which does not impose hardship, the better it will be for everyone concerned. Agreement within the Empire is the governing principle of the whole thing, and agreement within the Empire should be arrived at before we can attempt to get any international agreement.
When the so-called Imperial agreement was arrived at, on which the present regulations are based, in 1914, the Women's Associations of this country pointed out that there would be considerable difficulties, and that hardships would be imposed. It was obvious to everybody soon after that time that those hardships were realised. Even in 1914 and 1915 British-born women who were married to aliens became automatically enemy aliens, and if resident in this country they were treated as aliens. Conversely, alien-born women married to British subjects were in this country treated as British subjects. These are the sort of difficulties that were pointed out at the time the so-called Imperial Agreement was arrived at, and it was not very long before those difficulties began to arise and became apparent.
There is a third argument, which people think is reasonable and just, and that is in regard to the children. They say, "What becomes of the children?" Exactly the same thing happens to the children as happened before. It is the universal law that the nationality of the children follows that of the father—[HON. MEMBERS: "No!"]—and I see no reason for an alteration. So far as the law of this country goes, if a child is born on British soil it is a, British subject. Therefore, a woman in this country who proposes to marry an alien must take into consideration all these matters when she wishes to decide upon her nationality. If she is going to reside in this country although married to an alien, it is obvious that her children will he, born in this country and that they will be British subjects. Therefore, I see no reason why she should not retain her British nationality. If she is going to live in the country of her alien husband, I see no reason why, knowing that her children will in all probability, according to the laws of that country, be subjects of that country, she should not give up her nationality and take that of her husband.
There are other objections from certain directions, and some of those objections I have been studying in the Report of the Select Committee which sat in 1923. It emerges from the evidence given by the representative of the Home Office, that such difficulties as might arise regarding the English municipal laws, if an alteration were made in the laws of this country regarding naturalisation, could be overcome by minor alterations in the laws of this country, and if those things can be overcome I submit that it is only right that we should look after the women of this country in that connection.
So far as the evidence given by the representative of the Foreign Office is concerned, I do not agree entirely with it. The attitude which he adopted was that we should wait until other nations had signified their desire to alter the law in this respect. I think that we have had those indications from Belgium, Sweden, Denmark, and Canada, but it seems to me that that is a wrong principle, and one which we ought not to hold in this country. The governing principle is an Imperial agreement at which we ought to arrive first. Then we ought to bring the laws of this country, with regard to nationality and everything else, up to date, without waiting for any indication from any other country. We should endeavour to avoid those hardships which do occur in cases where the husbands of British-born subjects become enemy aliens, and those cases which involve undesirable women from other countries coming into this country and abusing the laxity of our law. We ought to show that we no longer regard the women of this country as the chattels of their husbands, and we should prevent the absolute scandal of dismissing from this country British-born subjects and denying them the rights, privileges, and obligations of their country because they have married an alien.
I beg to second the Motion.
The hon. and gallant Member who has just sat down has dealt so thoroughly with the subject that he has left hardly any argument for me to make. He has put his position in such a clear manner that there can be no reasonable objection to the Motion. When people talk about a woman and her nationality it always seems to me that they rather imply that a woman is not as patriotic as a man. No man wants to give up his nationality because of marrying an alien woman, and from the point of view of patriotism I am far more suspicious of a man who marries an alien woman than I am of a woman who marries an alien man, because the woman generally makes the man think the way she wants him to think, [HON, MEMBERS: "Why does she want to vote?"] She wants to vote because she thinks that power without responsibility is dangerous, and that is what we have had up to now. We want responsibility. In time of war the women are aggressively patriotic in all countries. The patriotism of women is never challenged, and it seems extraordinarily hard that because a woman marries an alien she has to give up what is very dear to her. I agree with the hon. and gallant Member that if she is going to live in a foreign country it is very likely that she will give up her nationality, because I think that it is bad for anybody to live in a country for a long time without taking the nationality of that country. It is a bad thing for the country, and therefore we want every citizen to have responsibility.
The Mover of the Motion has said that the women's societies throughout this country, and in the Dominions, are in favour of this Motion. Someone said to me to-day that they are a very small minority. That is true, but they are a thinking minority, and it is the thinking minority which counts in the end. It has been pointed out, in reference to the Select Committee of the Lords and Commons, that the Commons were all for this change, and the Lords were all against it. We expect the other House not to have changed, and that is why so many of us want to change the other House. They said that the argument was that it was inconvenient and they did not want to change. Women always have been an inconvenient necessity, but they were a necessity, or a woman would not have been put in the Garden of Eden, so that that argument about the inconvenience of this change has no weight. The more women become inconvenient to a certain section of the community the better, and I maintain that they will become more and more inconvenient if the laws of the land do not go in the way which thinking women consider just and fair and sound. After all, we do want justice. I know we have privileges which will never be taken away. We believe that the right thinking men will always go with us and the wrong thinking men do not matter much any way.
I am afraid that the Noble Lady is going a little wide of the Motion under discussion.
If you had read the Select Committee's Report, you would say that I am not wide at all. I am dealing with the arguments that were put forward. There was reference to confusion in the families. That argument is generally put by the man who wants to be the head of the family. Every Member of the House of Commons knows that there will be confusion in all families unless there is co-operation, and that there is a want of harmony when there is no co-operation. You cannot always say that the man is the head of the family. Some men are the head of the family and a great many of them are not and they never will be. That argument as to confusion has not much to support it. Then the Mover of the Motion spoke of the nationality of the children. It seems extraordinary that when a woman marries, say, a German her children are British while she is a German, and yet you talk about confusion in the family. What can be more confusing than that? You are dealing with a great many women who suffered greatly during the War. I have got a rather pathetic appeal here. It is a petition from British women living in Austria. It is addressed to "the Burgesses of Great Britain." It goes on to say:
"No true British-born woman becomes the subject of a foreign country when she is given a free choice. When a British-born woman marries an alien she is forced by that marriage to become an alien without any choice. What we demand is the free right of choice. The old condition of things is no longer tenable."
The whole of the sentiment in the Dominions is in favour of this change. We know what America has done. America has done all sorts of good things, but that is not the point now. It is a little difficult for me to continue, because the hon. Member has put forward every single point that can be put, but we must press this forward. It is a reasonable reform and a reform which we cannot afford much longer to do without. I know that the Home Office point of view always is that a change is inconvenient.
indicated dissent.
I am delighted to know that that is not so. This reform is absolutely necessary, and I hope that this Motion will be passed to-night without a Division. I am sure that the Amendment was put down in the right spirit, but at the time of a marriage pressure may easily be brought to bear on a woman by her husband not to make the necessary declaration. It is assumed that the woman who marries an alien generally goes to live in her husband's country, but that is not generally the case. You would not put that pressure on a man who marries an alien, and I do not see why you should put it on a woman. The time when a woman is in love is a very dangerous time. You have to take into consideration that both the man and the woman might say something before marriage which, on further consideration after marriage, they would wish to alter. As has been said by the Mover of the Resolution, women are no longer chattels; they never were chattels, except in law. To-day they are taking an active and a live interest, not only in national politics, but in international politics, and we have to remember what the thinking women want. Their patriotism is unchallenged. We know how during the Election houses were divided. I am certain that not one quarter of the wives of hon. Members opposite are Socialists. That is one of the things that hon. Members are up against. There is no more patriotic person in the world than a woman, no matter what position she occupies. Take my own case. I was American born, but no one could accuse me, after I had lived in England, of not having worked for what I thought was the best for this country. The real patriot loves any country that she happens to be domiciled in, and she works for what is best in that country. Patriotism is a splendid thing, because it is a sense of public duty. Do not let hon. Members think that it is a thing which comes out only when wars are in process. The peace-time patriotism of women is as great as their patriotism in war time. If I may seem to have wandered somewhat wide of the subject, I hope the Chairman will attribute it to the fact that all the arguments have been taken out of my mouth by the Mover of the Resolution.
I beg to move to leave out from the word "House" to the end of the Question, and to add instead thereof the words
9.0 P.M.
I propose to confine what I have to say to the Resolution and the Amendment. It is a vice of many well-intentioned and progressive persons that they wish to pass general legislation for removing grievances which are felt only by a minority. It is continually coming up in all sorts of proposals. I think it is implicit in this proposal as framed, that it is the normal case that men and women do not wish to have the same nationality. It is assumed in many proposals dealing with divorce that the normal man and woman do not wish to live together. We are reminded of the words of Mr. Chesterton:
I, like many other hon. Members, represent a constituency where unfortunately there are large numbers of poor people. These poor people would not normally wish to go to the trouble or expense of obtaining a declaration in order to retain the same nationality as their husbands. These questions are surely considered when a woman decides rightly or wrongly that she will marry a foreigner. Normally, the working woman surely would not wish to go to the difficulty and trouble and expense of saying that she wished to have the same nationality as her husband. That position, I believe, will be assumed. After all, in these matters one must have some regard for the general tradition, the general idea on which European civilisation has been built up—the idea that, normally speaking, you do not wish to have subjects of two different States, owing different allegiances, and with different obligations in the same family.
I was much surprised by an observation which fell from the Mover when he said that nationality was but one of the subjects which might divide a family. I have listened attentively in this House to the opinions of all, including hon. Gentlemen opposite, and I came to the conclusion that they valued the question of nationality and patriotism very highly indeed, and that it was not regarded by them as a question which could be put on the same level as a dispute as to whether one should have the fat part or the lean part of the meat or anything of that sort. It is a very serious question whether a husband or a wife owes allegiance to one body of morals and law or to another. I do not think one can say it is a small thing that the two heads—it will he noted That I say the two heads—of a family should have different nationalities and different allegiances. It is serious' in peace time, and it may become even more serious in wartime. Therefore, it is only in the gravest of cases where, for some reason or other, a woman feels she cannot or does not wish to follow the nationality of the man, that she should have this right, and I support the principle of the Resolution in that she should have the right, if she so wishes, to retain her own nationality. Otherwise the Motion proposes to give a charter to the crank, to the unusual, and to the abnormal and to make that the basis of the normal case. I do not believe that the ordinary working woman does want this right, but if she thinks she should have it, I say she should have it, and the Amendment provides for it in form.
Do I understand the hon. and learned Gentleman to say she should have this right, but that in the form in which it is given she would practically never use it? It is a vital matter.
It would be vital if I had said it, but I am not conscious of having said any such thing. What I said was that in the normal family I believed this demand would never be made, but that where it was made it should be accorded in form without any qualification. I said that, in fact, I thought working women as a whole would not desire it, and I do not think any class of married women would, normally, desire a nationality different from that of their husbands. I say, however, that where there is a grievance, and where they do desire it, then I support the proposal that they should have the right to get it. One point which is important is that of the time when this declaration is to be made, and that difficulty applies equally to the Motion and the Amendment. The Mover has not said at what time, whether before marriage or on the day of marriage, or during the honeymoon, or subsequent to the honeymoon, this declaration of alienage which he contemplates is to be made, and the same problem arises on the Amendment with regard to the declaration that the woman wishes to retain her own nationality. It is a matter which cannot he decided on this Resolution, but would have to be decided if a Bill were brought before the House. I do not understand either the Resolution or the Amendment to say that in. the excitement of the marriage or even during the period of the honeymoon the whole option of choice is exhausted. I think the Resolution is consistent with the choice being exercised subsequently—either the choice in the Motion to take alienage, or the choice in the Amendment to remain a British subject—and I think a time ought to be accorded for that decision.
Before 1870, according to the common law, the British woman and the alien woman were unaffected by marriage. Sir John Cockburn, in the much quoted little book on nationality which was cited before the Select Committee, says that, contrary to the law of all other nations except those which follow the English law, marriage by the common law has no effect on the nationality of the woman. Then by 7th and 8th Victoria, an alien woman who married a natural born British subject became a British subject, and in order to provide for the converse case, and to harmonise with the general international law, in 1870, by Section 10 of the Naturalisation Act, British women marrying aliens became alien subjects. The House has to decide whether it is in favour of the principle of the automatic division of the family by dual nationality, or whether the grievance of the woman is redressed if she has the right to "contract out"—to use a phrase which will become much more familiar in a week or two in another connection. I think the Amendment is more reasonable and does not precipitate the host of questions which the Motion raises. It is confined to remedying the real grievance without opening up the wider question of whether dual nationality shall or shall not be a normal condition of the family. I am becoming used to finding the most revolutionary proposals coming from the benches opposite—proposals which are revolutionary, I often think, in a bad sense. I think we shall make a mistake if we indulge in legislative activities which tend to break up the family. I believe the real sum and substance of the views which we take on this side of the House is that we feel that modern plutocracy does break up the family, and we are advocating views which will keep the family together. The whole of civilisation must rest on the integrity of the family, and we should pause before passing a Motion which, on the face of it, would go a long way towards breaking up the family, if other proposals in the same direction, which are probably coming from the other side of the House, do not complete the work.
I beg to Second the Amendment.
I am a little apprehensive as to the meaning of one or two remarks made by the Mover of the Motion. I think he gave away a good deal of his case when he said that the intention of the Motion was definitely to prevent an alien woman who married a British subject herself becoming a British subject. In fact, the Motion does not indicate that in the least; and if I thought for a moment that the purpose of the Motion was to deprive an alien woman marrying a British subject of British nationality then I would oppose that proposal. The wording of the Motion, however, is not to that effect at all. It indicates nothing as to what is to happen to the alien woman marrying a British subject, but applies exclusively to a British woman marrying an alien. It is in that direction I desire to speak.
I think I have explained to the House already that my original intention was to move a Motion applicable to both aspects of the case. In the wording which I gave to Mr. Speaker when my name was drawn from the ballot box, owing to my inexperience I rather cramped my style, and I have to confine the Motion to one of these matters so as not to have it ruled out of order. I mentioned the case referred to as one which was the natural corollary to the other case.
That explains a great deal; the intention apparently in the minds of the supporters of the Motion is not merely to secure the retention of British nationality by the worn an who marries an alien, but at the same time to deprive of British nationality the alien woman who marries a Britisher. I want to say very definitely that if we accepted that principle, we should only be removing one hardship in order to substitute another. In fact, while aiming a blow against the practice which now prevails, you would strike the British male who marries an alien female. I would like the House to favour the Amendment in preference to the Motion for the few reasons which I am about to give. This is probably one of those questions which does not affect very many people; but I feel sure the House will guess that there is a great deal of tragedy behind the cases of some British women who marry aliens. And if the records which are available were presented to this House of the hardships and the cruelties which are found in the history of some of these women, I have no doubt in my mind that every hon. Member would vote for the principles which we are propounding to-night. But when I saw the Motion, and after having had some experience of dealing with this problem at the Home Office, I felt satisfied that, although I agreed with the principle, the method proposed in the Motion would tend to create another and a new hardship.
The normal course of things throughout the world is, with a few exceptions, that the woman adopts the nationality of her husband. I am not going to argue whether that is right or wrong. That is not the point. If we began to argue that question, I am afraid that I would be called to order by Mr. Deputy-Speaker, as the Noble Lady the Member for the Sutton Division of Plymouth (Viscountess Astor) was a few minutes ago. One thing emerges very clearly in this discussion. I agree entirely that a woman is quite as patriotic as her husband. I agree also that the maxi should not be the sole 'master of the household. I agree with that because, in fact, he is not. Let me put a case to the Noble Lady and the House. I know a British woman who married an American citizen, but who did not naturalise, though she lived with him in America. She came over here on a visit last year, and because she was not an American subject she found it difficult to return to America, because she was not within the emigration quota. That is a case of hardship the other way about. I understood the Noble Lady to argue, as the Mover did, that it is better, that in fact it is always correct, that a British woman on marrying an alien shall retain her British nationality. But I want to prove that it is sometimes dangerous, that it sometimes brings hardship and tragedy to the woman herself, if she retains her British nationality. A British woman marrying an alien and both residing in this country would undoubtedly benefit, in my view, if she retained her British nationality; but if she removed to the country of origin of her husband, then, in my view, she should no longer, in her own interest, retain the nationality of her own country.
She should have the choice.
I agree. I want to put another point to the House. My hon. and learned Friend the Member for South East Leeds (Sir H. Slesser) has made it quite clear that we want to deal with the problem from another angle to that of the Motion. In my view, the Motion would make the position impossible, unless husband and wife remained in this country. If we were dealing to-night merely with Great Britain, we might easily pass the Motion and settle the whole issue, but we are living in a world that has been upset very largely by the last war; and very largely naturalisation and alien laws are the result of that war. I could give the House cases where British women who married and became aliens have been left in a serious position because they resided in the country of their husband's origin during the war. But they would have been in a more serious position if they were to be regarded, not only as aliens, but as enemy aliens, and if we gave a title automatically to the British woman to retain her British nationality, she would probably suffer great hardship in another country.
Nobody yet has raised the issue of international conventions to deal with this problem. My view is that the solution of the problem does not lie merely in securing the agreement of the Dominions and the Colonies in this connection, but in the British Government bringing this case, as I hope they will, before the League of Nations at Geneva, and securing an International Convention, whereby the woman shall not suffer as a consequence of retaining the nationality of the country of her birth. I have a fear that whatever is done, by the adoption either of the Motion or the Amendment, the poor woman will always be under a disadvantage as against the rich. The rich woman can buy legal advice, she can travel from one country to another, and she need not reside in any one country permanently but the noel woman, if the Motion were carried and the Amendment rejected, would then most probably, through ignorance, retain her British nationality, and would take no legal steps al all to acquire the nationality of her alien husband. She might therefore go to a foreign country, probably to the East, as an alien. I venture to say that, whatever hardship has been endured by a British woman who has acquired the nationality of her alien husband, the case of a woman, who retains her British nationality while living abroad, especially in the East, may be ten thousand times worse. [HON, MEMBERS: "No!"] For illustration, I have had to deal with the sad cases of British women who acquired the nationality of their German husbands during the War, women who suffered greatly owing to the War. You have to take account of war in this connection. If it were not for war, the problem would not arise in as acute a form. But I dread the idea of a British woman being regarded in a foreign country with which we were at war as an alien enemy, as she would be if the Motion were translated into law. She could have been regarded during the last War in that way. I want to say, finally, that we have approached this subject not from the propaganda point a view. I think there has been quite enough propaganda on this subject. We want something practical done. I imagine that every reasonable person would believe that a British woman ought to be entitled to retain her nationality. I submit that the method of approach suggested by the Mover of the Motion is wrong. We only differ in method; we do not differ in principle in the least. I trust that, whatever happens to the Motion or the Amendment, we shall get from the Government a promise that something will result from this Debate. But, whatever this House does, it will not solve the problem entirely. I trust and hope that the question. will soon be raised officially at Geneva before the League of Nations, so that a woman, to whatever country or nationality she belongs, shall be entitled to stand before the world and declare that as she was born in a given country, and that, irrespective of her marriage, she is entitled to retain her nationality.
I imagine that in all quarters of the House there will be general sympathy with the objects of the Motion. Speaking for myself, I can see absolutely no difference of any materiality between the language and intent of the Motion and the language and intent of the Amendment. They both seem to me to mean precisely the same thing, and if there is any difference merely arising from the various expressions used in the Motion and the Amendment, I should hope that the hon. and gallant Member who moved the Resolution will adopt the language of the Amendment so that the House can be unanimous in passing what everybody 'believes on this question. While I have no doubt as to the unanimity of the House supporting the object of the Resolution, I have very grave doubts whether, unless the House shows itself serious, the passing of the Resolution will be followed by anything practical. Again and again Resolutions of this character have been passed, and nothing has resulted. I do not believe for a moment that this country ought to wait until the principle involved in the Resolution should be adopted by the various members of the League of Nations. That may be for years and it may be for ever. I do not believe we ought to wait until the principle adopted in this Resolution has been accepted by all the self-governing Dominions. On 14th July, 1921, I put a question to the then Prime Minister on this subject and I was told that no decision could be arrived at until the Dominions had been conferred with. That is four years ago and we are not one inch further along the way to legislation than we were at that time. Moreover, in the Joint Committee of the two Houses, Members of the House of Commons, led by the Noble Lord who was then Sir John Butcher and who took such an active part in leading the propaganda on this question, were absolutely unanimous, but no result has accrued. We do not want to wait till other bodies have concurred. There never will be universal concurrence. We must go our own way, and if we think one way is right we must follow that way. The hon. and learned Gentleman who moved the Amendment chaffed the hon. Mover with bringing forward a revolutionary proposal. It is not revolutionary. It is simply going back to the old Common Law of England which was enforced till 1870. During the period down to 1870 history does not record any marked disharmony between husbands and wives. History does not record as a result of that law any great complication resulting from the then doctrine. of nationality of married persons to any greater extent than there have been complications since 1870. The real reason for that portion of the Naturalisation Act of 1870 affecting this question was that it slipped in by accident. There was no agitation in favour of depriving a wife of her British nationality. If it had been discussed in the House at that time it could not necessarily be binding on us now, since the position of women has since then so materially changed in this country.
Do not let us think that whatever is, is necessarily the best. We know that the system adopted in England at the present time, although it is in conformity with the system in various countries, is not a universal system since the War. It is in consequence of war experience that the United States and Belgium have altered their previous law. Under the Cable Act passed by the United States in 1922 an American woman who marries a foreigner retains her American nationality unless she formally renounces it in a court. The same has applied in Belgium since 1922. It is open to a Belgium woman who marries a foreigner to decide within six months whether she wishes to lose her Belgian nationality. The real test of the existing law on this is the test, how has the present system worked? Down to the time of the War there was no very clear evidence of inconvenience one way or the other. Nobody who since then has had any experience of the effect of a married woman losing her nationality on marrying an alien and of the effect of that on the fortunes of British women who married Germans and Austrians during the War, could hesitate to assist the reform. Under Articles 296 and 297 of the Treaty of Peace, the property, rights, and interests of all enemy aliens became subject to what is called the Treaty of Peace Charge, the result being that all enemy aliens lost all their beneficial interests in property in this country as they were on the 11th January, 1920. All English women lost every farthing they had in consequence of being, in law, of the same nationalities as their husbands. Exceptions have been made as an act of grace and not as a right. That shows the practical disadvantage of the existing law. There have been many cases in the Courts which 'have shown that there is no escape for a married woman under those circumstances. Even in a case that went to the House of Lords, in which a married woman restrained from anticipation had a beneficial interest in the settle-merit, where she was purely English by origin, where the children were English and not affected by the charge, the intention of the settlement was defeated because this woman lost the whole of her beneficial interest. Then there was the remarkable case called the Fasbender case, which occurred after the end of the War. After the Armistice, but before December, 1920, an English woman married a German. It was held that although this had taken place after the War every farthing this English woman possessed became con- fiscated because she was in law a German in 1920. I have come across other cases of English women who married Germans who became divorced from Germans before the War, but who did not become renaturalised. There, again, they lost every penny settled upon them, and anything that was handed over to them was handed over as an act of grace, and not if right.
There is no doubt the existing law imposes such hardships and such injustice on English women, that everybody must realise that the time has come for a change on the lines suggested in the very admirable speech of the hon. Mover of this Resolution. I do beg the hon. Gentleman who is going to speak for the Government not to be content with a mere expression of sympathy, or a pious aspiration in regard to this Resolution. We have been waiting far too long to be contented with passing a mere academic Resolution. Let us get something done, and it is because I hope that something will be done, and that something is more likely to be done if all parties concur in one common Resolution, passed unanimously by the House of Commons, that I hope the little differences of verbiage between the Resolution and the Amendment, which have no substance at all, may be composed between the hon. Mover of the Resolution and the hon. Mover of the Amendment, and that the House may show, by a unanimous vote, that it is really in earnest on this question.
I agree with my hon. and learned Friend who last spoke that there is no substantial difference between the Resolution and the Amendment. The whole point is whether women should lose their British nationality if they marry aliens. Before 1870, although a woman, on marriage, lost her property and her money, and most of her civil rights, she was, at all events, allowed to retain her country. In that very year 1870, when was begun that series of statutory enactments which have gradually brought a woman back to that individuality and self and property completeness which she displays to-day, curiously enough was passed another Act, the Naturalisation Act, which said, by way of counterpoise, "Now that we are going to give you your property, we now, for the first time, take away your nationality." One wonders how that came about. There really was no connection between the two statutes except the same year. In fact, I am inclined to think that some of the legislators who had debated one were wholly ignorant of the existence of the other. It came about in this way, that the nationality of a woman was regarded as a purely sentimental thing, of no material consequence, and when, for the purpose of dealing generally with naturalisation, they treated the husband and wife as a unit, nobody raised a question. It started in the House of Lords, and, as my hon. and learned Friend has reminded us, there was no discussion in the House of Lords.
From that day to this we have had statute after statute, some major and some minor statutes. We have now reached a time when a woman can say to her husband, "What is mine is my own." She can stand up in her own drawing-room and say, "Obey you, Sir? There is the door." She can have her own vote, and at the breakfast table say, "You, Tory, keep your opinions; Liberal, will keep mine." Yet we find, that while marriage is possible and, I am glad to say, in most cases an agreeable union, though political opinions differ, though religious opinions differ, it is to be assumed that two persons who worship God in different ways, who worship the good of their country in different ways, cannot possibly unite because they have a different sense of patriotism. It is a little bit ridiculous. Now, if it were confined merely to the logical view that I have been putting, the logical anomalies that arise, a great deal could be said in favour of this Resolution, but it goes much further.
The first time this matter was dealt with since 1870 was after War broke out in 1914. Then it was recognised that a woman's nationality was much more than a sentiment, and that in marriage if she lost that she lost a good deal more; she lost her property, her status, her respect, and she brought upon herself, quite undeservedly in thousands of cases, the finger of Fate and of scorn. The same conservatism which so marks our legislation said, "We will preserve this unity. A woman loses, nominally, her nationality, but we will give her specifically back all the material losses that now occur, and we will say, 'Though you lose your nationality, still, we will arrange that, in case of your husband's death; though you lose your nationality, in case you are divorced, you can get it back; though you lose your nationality in case of marriage, still, if your husband chooses to go and serve an alien enemy, then, if you wish, you can get it back.'" And they thought that they had covered all cases, but they did not. There was one very important case they did not cover. What about the woman who was deserted? The Act of 1914 did not give her any right to make a declaration that she was British in spirit and British by birth, and that unfortunate woman, suffering from the double loss of the stigma of her husband's nationality and desertion, remained unprotected in this country, robbed of every right that should attach to her as a British subject. That is only one case that occurs to me. There are many others. I have not studied this subject; I did not intend to speak until quite recently, though I am quite sure I could find others out. What is the objection to simply and plainly saying what is asked for, since the whole trend of legislation for the last 50 years has been that a woman should be able to stand beside her husband in the unity of marriage, and still retain every attribute that belongs to her as a single woman? We have done it in regard to property. We are going to do it, I hope, with reference to children. We have done it in civil life in regard to votes. Why should we not do it with reference to the greatest thing—that of a woman's country? The late Under-Secretary drew a pathetic picture for us of the case of a woman who was married to a German. He said to her that because she retained her old nationality he would not live with her; and as a Britisher she was subjected to great ignominy and great suffering. There is no need for that. Let a woman in regard to her question of nationality be as free as she is on the question of her property. As the law now stands, if a lady has a great deal of property and there is a poor man who has none, she can either say to him, "Sir, I endow thee with all I have!" or equally say to him, "Sir, you can look at me while I hold my property." If she marries a German, a Frenchman or an Irishman—now of the Free State—she ought to be able to say, "I should like to be a British woman still," and for the man to say to her, "All right." All that is asked is that she should make a declaration whether she will have husband's nationality or not.
There was just one other observation made by the last speaker. He said, or suggested, that there was the possibility of a woman having two nationalities. Probably that is the reason why it is desirable to consult the Colonies in this matter. At the moment I should like to point out, before any Bill of this kind indicated by the Resolution comes in at all, or any change in the law takes place, that the same thing is happening to-day with regard to America. The American law is that a woman's nationality is unchanged by marriage. The British law is that it is affected by marriage. If an American lady marries an Englishman at this moment that lady's nationality in America is American. That lady's nationality in this country is English; and as far as we can observe it does not do any harm. It is wholly wrong. It does material mischief, and is in the last degree anomalous that in the year 1925 the woman who has won—I will not say that degree of independence, but that degree of individuality in her progress, social and political, which she has to-day, should be denied the right of having a country of her own. Just think of it! I can he sure that at the end of my days nobody can ever rob me of my birthright in this matter. No lady, not even the Noble Lady opposite (Viscountess Astor) can say that that would he her lot, because some enticing alien—before the present impediments are removed—may come along and the lady may have by choice to say: "I remain in pleasant widowhood as a Briton, or in the delightful companionship of an alien husband." That, is—
On a point of Order. Has the hon. and learned Gentleman any right to draw this lamentable picture?
The hon. and learned Gentleman is in order for the purpose of debate, but it would be as well if he did not go so deeply into hypothesis.
It was indeed an hypothesis, Mr. Deputy-Speaker, with an illustration. I hope the Noble Lady will forgive me. Because I would defy any woman to rob me of my nationality, she should, I suggest, favour a change in the law which would enable her to say, "I defy any mere man to rob me of mine." For these reasons I shall support the Resolution. I do not think there should be any serious objection on the part of any Member of the House when a Bill comes forward on the lines suggested.
we have had a very interesting Debate, but in view of the time perhaps it may be convenient if I reply at this stage. May I say that I think the Amendment of the hon. and learned Gentleman the late Solicitor-General is preferable to the Motion put forward by my hon. and gallant Friend the Member for Totnes (Major Harvey), because under the Amendment you are leaving the normal practice, while under the other you are allowing the wife to, contract out. I should like, if I may, to go into the history of this matter. My hon. and gallant Friend, in moving his Resolution, pointed out that foreign countries have the same principle of law as ourselves. I think it was the Mover of this Motion who pointed out that certain countries had modified the practice, and I think he mentioned Sweden as one of them. As a matter of fact, in Sweden a wife is only able to retain her nationality after she marries an alien if she does not go abroad and live with the alien in his own country. So that, from the point of view of the Amendment and the original Motion, reduces a good deal of the advantages to the woman concerned.
Suppose a British woman marries in this country an alien who is not naturalised, does not she lose her nationality? Suppose a woman marries a German in this country, the German not having been naturalised, she becomes a German.
The hon. Gentleman who has lust sat down mentioned in his speech that there are several relaxations under the Act of 1914. I think he mentioned the fact that if a woman marries an alien, and that alien finds himself in the situation of being a citizen of a country at war with this country, she is able to revert to her own nationality. Also, it sometimes happens that a Britisher changes his nationality; in that case, if the British wife had married beforehand, she is able to retain her British nationality. Thirdly, in cases where a certificate of naturalisation is revoked, the wife retains her British nationality, unless it is otherwise desired. Therefore, it is not absolutely a hard and fast rule that a woman who marries an alien must always remain an alien.
I would like to remind the House of one or two points. We have had two Committees sitting on this matter. We had a Committee in 1922 which, unfortunately, was put a stop to by the Dissolution of Parliament in that year. Then we had the Joint Committee of Lords and Commons in 1923. As an hon. Member has pointed out, in that case opinion was divided, and they came to no agreement at all. After that, the question was brought up at the Imperial Conference of 1923, and the Conference referred the question to a sub-committee. That sub-committee went into it very carefully, and passed a resolution saying, that in their opinion the present, principle of law ought to be maintained. But they recommended one alteration. Under the existing law a British-born woman who has married an alien, and whose husband has died or has been divorced, is naturally eligible for a certificate of naturalisation, and in her case the conditions as to residence are relaxed. What did the sub-committee of the Imperial Conference recommend? They recommended that a woman should be re-admitted to British nationality where the married state, though officially existing, had for all practical purposes come to an end, that is, where the wife and the husband were living permanently apart. I should like to give the words of the sub-committee— should not lose her British nationality in marrying an alien unless he acquires his nationality by the law of his own country, and, as a matter of fact, that was the only point on which the Joint Committee of both Houses had agreed upon. We have really got two practical suggestions now before us, one recommended by the Joint Committee, the only thing they agreed upon, and the other recommended by the 'Sub-Committee of the Imperial Conference.
Was that sitting of the Imperial Conference before the War?
10.0 P.M.
No; this was in 1923, two years ago. These two suggestions, one by the Imperial Conference, and the other by the Joint Committee, were submitted to the self-governing Dominions for their decision in the autumn of last year, and up to now the only self-governing Dominion which has replied has been Newfoundland. None of the other replies has been received. Presumably the Dominions will agree to accept the recommendations of the Sub-Committee of the imperial Conference. But in regard to the second proposal, made by Lord Danes-fort in another place, it is a little bit more doubtful. Lord Danesfort made that proposal in order to meet the difficulty of the Cable Law pointed out by the Noble Lady the Member for Sutton (Viscountess Astor). As we all know, a British woman marrying a citizen of the United States cannot get the nationality of her husband until she has been resident at least one year in the United States, and Lord Danesfort made that proposal to try to get rid of that difficulty. As a matter of fact, his proposal will not get rid of that difficulty, because although the wife who marries a United States citizen will be able to retain her British nationality, directly she tries to get into the United States she is an alien so far as the United States is concerned, and will not be able, very likely, to get into the country. So that particular proposal of Lord Danes-fort will not really help us.
Does she keep her British nationality? The minute she marries she loses her British nationality.
I am only saying that that particular proposal will not get over the difficulty. I think we are all agreed that something ought to be done, and we ought to go into this question very carefully. I do not believe a single Member, or hardly anybody, has mentioned the question of losing the franchise. It seems very hard indeed that a woman should lose the franchise on marrying an alien. There are various difficulties. It is not merely the question of a British woman marrying an alien and remaining in this country. You have also got the difficulty of a British woman marrying an alien and living abroad with her husband. I think that is a great difficulty. If she is living abroad, I am sure, generally speaking, it must be to her advantage, and to the general advantage, that she should retain the nationality of her husband. The Noble Lady did not seem to think it mattered very much about having two nationalities in one family, but if that happened it is quite possible the children of the family would make a great effort to obtain the nationality of the mother instead of that of the father. I think it is very undesirable that such a situation should arise, and I do not think we right to encourage it.
I never said anything about having two nationalities.
Another argument has been adduced, and it is that a woman ceases to be eligible for the Civil Service when she loses her nationality. May I point out that she already loses her job if she is a British woman when she marries, quite irrespective of whether she marries an alien or a British subject. It is only in the event of the husband's death or a dissolution of the marriage that she is under a disadvantage by marrying an alien, that is to say, if she had married a British subject, she can re-enter the Civil Service, but if she had married an alien she cannot, even if she becomes British again. I agree that is a considerable grievance, but it is not a matter for legislation, and the way to meet that case is by a very slight alteration in the Civil Service Rules. The Civil Service Commission make the rules, and it would be possible to pass a rule that a British woman under those circumstances who married an alien, on the death of her husband or a, dissolution of her marriage should be able to rejoin the Civil Service, if she desired to do so and if she resumes her British nationality by obtaining a certificate of naturalisation.
I should like to remind hon. Members that all changes in the nationality law require the consent of the self-governing Dominions. I think that has been lost sight of in this Debate. Unless the self-governing Dominions agree to this change it is practically impossible to deal with this question on the lines suggested. Having regard to the recent Imperial Conference and their decision to maintain the existing law, and having regard to the exhaustive consideration of this question by a Joint Committee of both Houses, I do not think it would be right to re-open the whole of this question and do anything in the way of legislation. The Government do not intend to oppose this Motion, and I think it would be better to concentrate on the two proposals I have mentioned, one suggested by the Imperial Conference and the other by the Joint Committee. We have sent these proposals to the self-governing Dominions and we are awaiting their reply. In all probability they will agree to both proposals, and then we can get on with the matter and pass those particular reforms. Certainly, the Government do not want to resist this Motion, and if the House desires that it should be carried, let it be carried. I should like to say it is quite impossible until we have the assent of the self-governing Dominions to engage in legislation. Directly we get their replies, if they are practically unanimous, we can then pass legislation on this subject.
I am sure this House will be sorry to hear the concluding remarks of the Under-Secretary of State for the Home Department. If the hon. Gentleman has followed the Debate closely I am sure he will have realised that there has been a most unusual amount of unanimity. There has not been a single speaker who has objected to the principle which we are putting forward, and it does seem a little hard when faced with that state of things that he tells us that he finds it impossible to carry into legislation what I hope will be the unanimous view of this House.
We are all aware of the innumerable ways which have been invented for Ministers of the Crown, of whatever party, to delay legislation that is inconvenient. What they are faced with is not that the Government finds it inconvenient, but that the Departments which have to administer the alien law will find it inconvenient if the present method is upset. Therefore what we are really faced with is the resistance of the Departments who have to administer this law. I would suggest to the Under-Secretary, although he has said that legislation is impossible, that he should be good enough to reconsider this question a little further and see if it is not possible to introduce legislation which is obviously not going to be contentious.
It is a little hard for British women to be told that the Colonies are to be the deciding factor in regard to this question. But even if that were true, is it not a fact that Britain is rather lagging behind the Colonies in this matter? We have been told by a previous speaker that Canada arrived at an opposite decision in regard to this law, and it was only when they were told that this change would not be tolerated by the British Parliament that the Canadian Parliament reversed its decision. I do not think this question should be made a kind of shuttlecock between this Parliament and the Dominions. I suggest that someone must take the lead, and surely it is for the Mother of Parliaments and the head of the Empire to take the lead in this matter and ask the Colonies to follow her. In order to secure unanimity I would not in any way say that I would prefer the Amendment or the Resolution, but as it has been taken into account which is going to be the simplest procedure, I suggest that for the working woman who cannot pay for legal advice it is much simpler to follow the procedure suggested in the Resolution. The working woman who has been born in this country and worked in it all her life cannot really understand why she loses her nationality if she remains in this country and marries an alien. To her it is perfectly simple that, if she is born British, she should remain British unless shy expresses a desire to the contrary. Obviously, if she wishes to live out of the country, it would suggest itself to her to express a desire to the contrary, but, if she is going to remain in this country, the machinery that is suggested by the Resolution, namely, that she remains British unless she wishes to take the nationality of her husband, is much the best.
This is a matter of practical convenience. I do not want to follow other speakers either into the Garden of Eden or into what happened before the Flood, but what is happening to-day is that a very large number of women have been very bitterly hurt by the existing law as a result of the War. Talk about homes being broken because mother and father do not agree—what tragedies we have had to face in this country because women who have never been outside it suddenly find themselves considered as aliens. That has broken far more homes and far more lives. I ask the Minister, when he has this unanimity, cannot he possibly take the lead and get us some legislation?
I think that all who have listened to this Debate must have been struck by the unanimity of feeling in favour of the taking of some steps to redress what is a very real grievance, and also must have been struck by the extraordinary perplexity and fog in which the question is shrouded. As far as one country is concerned it is easy enough to pass legislation altering the law, but there arises the question, which has been referred to by several speakers in this Debate, of the very different laws which exist in other countries, and which must he affected by any legislation that we pass here. It seems to me that one of the questions which has been least considered in this Debate is that of the possible effect of any alteration of our own law upon the children, unless we can come to some international agreement on the subject. Those of us who during the War had experience in connection with appointments will remember the numerous questions that were asked about the nationality of their parents, and I want hon. Members to consider for a moment what, if no international action is taken, is going to be the position of the children of a mixed marriage where the parents reside in a foreign country and where one of those parents is of different nationality from the other.
I foresee that there may be very great hardship, and I do not think enough attention has been paid to the excellent suggestion of the late Under-Secretary for the Home Department, that we might very well take the lead in proposing to the League of Nations an international agreement. If we can get some definite proposal to which all or the majority of civilised countries will assent, with regard to the nationality of married women, and above all, giving each the right either to contract in or to contract out, I think we shall have gone a very long way towards solving a difficult problem and removing one of the grievances of modern life. I sincerely trust that the Government will take that action in the immediate future, and that before the House rises this evening they may be able to give us an assurance that they will take that point of view into consideration.
I feel that this grievance is one that has arisen largely because of the war, and the cases fall under two heads, namely, those in which women who have married aliens are resident in this country, and those in which women who have married aliens reside in the country of their husbands; and there are a great many problems that must be considered before we introduce legislation on the matter. Although I am thoroughly in favour of the principle behind this Resolution, I would ask that the Government, if possible, should take steps to have this matter considered by the League of Nations, and that we should try to get some definite international agreement on which our legislation can be based.
I hope very much that the principle of this Resolution will be carried unanimously by this House. I hope, also, that the Cabinet will not insult the opinion of this Units, by doing nothing after the Resolution has been carried. I cannot conceive of any greater insult than would be inflicted upon this House if the Cabinet should take the view, "You may carry this Resolution, and those of us who are present will vote for it, on the distinct understanding that it means nothing, and that we do nothing to carry out its terms." Of course I recognise perfectly clearly that precipitate action may not be the right way to go to work. I recognise that, just as the original legislation relating to this matter was carried after consulting and with the consent of the Dominions, it may be necessary for the Government to consult the Dominions in introducing the particular legislation which will carry out the terms of the Resolution. But there is no reason why that action should not be taken at the very earliest opportunity, and even if the Government cannot introduce legislation to carry it into effect this Session, at any rate, assuming they survive until next Session, I hope they will make it perfectly certain that they are in a position to do so in 1926 at the very latest.
May I put the main issue in perhaps a slightly different way from that in which it has been put by other speakers. British citizenship seems to me—and I am sure everyone in every part of the House will agree with me—a very great and high privilege, a matter carrying with it very important consequences—allegiance, franchise, and many responsibilities and rights. We take the utmost care as to, the terms on which we allow a man to come into or go out of British citizenship, but, under the present law we take very little care as to the terms under which a woman shall come in or go out of British citizenship, and apart from the wrong inflicted upon women by the law, as it stands at present, I contend that we do a very great injury to this country in the haphazard, hit or miss, method by which we deal with the nationality of women. You cannot make nationality by a signature on a parchment. Nationality, carrying with it the love of country, is a thing which is much deeper than mere title deeds or words on a piece of paper. It is a matter of the heart and you cannot put it on or off like a garment. It seems to me that in a great deal of the talk there has been about the difference in the home owing to the man and wife being of differfent nationalities it is not a question of whether they are called one nationality or the other that matters. It is the sentiment and the tradition which is at the back of the mind of those two people. We do not change that by our action in the Legislature. We cannot prevent differences of nationality where they exist in the hearts of the two people. What we can do is to prevent the friction which arises when the nationality which the woman has in fact in her heart is distinct from the nationality to which she is supposed to owe allegiance, and during the War, when the question became of the utmost importance, that was realised in a way it is not realised at ordinary times.
When this proposal for making the present law of the nationality of women was being considered in 1914 the Government of that time, I have good ground for thinking, intended to carry a law, which would have been absolute in its effect, that the woman took the nationality of her husband. Those of us who felt very strongly on the matter at that time—and did, though I was not a Member of this House—exerted all the influence and put forward all the argument that we could to induce those who were in charge of the Measure to change it. They did not consent to make the major changes, but they consented to make the minor changes to which reference has been made. One of the arguments that they used at that time against making the full change that we are asking for to-day was this: "If you make this change, you will be coming into conflict with the general law of nations, and wherever your law acts you will have two nationalities or no nationality for women." There was a certain amount of strength in that argument, but owing to the steady change that has been going on in the world since that time, in particular the change in America, which is very important from the point of view of this country, the boot tends to be on the other leg, and we are beginning to find difficulty arising owing to our retaining the old law of 1871, instead of coming into line with the newer laws which have, already been made in the United States, Sweden and Belgium, and are, I understand, coming into operation shortly in other countries.
I see the Prime Minister in his place, and I would urge him very strongly that if this House carries with unanimity a Resolution, in whatever form, urging that the consent of women shall be required as to a change in nationality, the Cabinet will take active and positive steps to carry that Resolution into effect, and that they will get into consultation with the Dominions at the earliest possible moment. If it is not possible to do that in order to introduce legislation this Session, I hope they will be prepared later in the year to have legislation ready, so that in 1926 this wrong may be definitely put right.
Naturally, if this House pass a Resolution in the terms of the Amendment of the hon. and learned Member opposite, we shall transmit that Resolution to the self-governing Dominions, and do our best to put it through.
If we pass the Resolution in the original form, will you transmit that also?
I understood that my hon. and gallant Friend who moved the original Motion was going to withdraw it.
No.
This is a subject of great interest, particularly to those who have been conscious not only of the legal but of the moral and civic difficulties that are bound up with international marriage, and with the difficulties of finding a basis in law for dealing equitably with the special problems and difficulties that grow out of the fact of a citizen of one country marrying a citizen of another country. It is not only that there are differences in the law of the countries of the world, but that there are difficulties in regard to the regulations as to property in different countries. We live in a world, too, in which wars occur from time to time, and we have had cause to realise the serious and tragic difficulties which grow out of international marriage. The hon. Gentleman below me spoke of the very harsh disabilities which affect British women, but precisely the same difficulties, for example, occurred to British men who happened to be living in Germany during the War and who married German women. I remember vividly in the days in Ruhleben that frequently we had German women married to our own friends and compatriots in the camp, and when they attempted to enter to meet their husbands they were thrust back from the camp at the point of the bayonet. I remember how British men had to make special pleas in order to be allowed to go to Berlin to see their own children who had been fighting on the German side in the Army and who had been fatally wounded.
These disabilities which have been referred to are not entirely matters of law, but are primarily the effect of war itself. Therefore I do suggest that, in view of these difficulties, it is very important that we should distinguish between what should be done under the law and those other difficulties that come upon us because of the warlike nature of the existing society in which we live. We should not imagine that by some legal enactment we are going to put out of existence those major sufferings which come from war itself, and which cannot be eradicated until war itself disappears. But when we come to ask ourselves what kind of principle should underlie the proposed legislation, then I feel, with other hon. Members, that the principle of perfect equality as between men and women should be the one guiding principle. So far as I understand, one of the chief differences of those who are supporting the Motion and those who are inclined to agree with the Amendment is that we are not clear as to the place of residence of the alien in terms of the Resolution. One part of the House is arguing that a British woman who marries an alien marries an alien who is living in this country, and another part of the House thinks it essential for the purpose of legislation in terms of the Resolution to think of an alien who lives habitually in another country.
If there is some understanding in regard to that point it may be possible to compose our difficulties and agree upon this fundamental principle of equality in the law as regards international marriages as between men and women. There is one point in regard to the applicability of this principle as to which I must express very great surprise, if not a certain amount. of indignation. It seems to me to be altogether regrettable that the hon. and gallant Member who moved this Motion should have associated this very eloquent plea for a larger measure of legal freedom for British women with references to the position of the women of another nationality in which, as I think, he went deliberately out of his way to emphasise that, while the position of British women should he improved, the alien women should have some restrictions deliberately placed upon them. I can hardly imagine any argument more derogatory to the cause which is implicit in the Motion itself. The essential matter is the freedom of women as such, and any argument which pleads for freedom for women by restrict- ing the freedom of other women is in danger of losing its own value.
I would urge very strongly that in considering this subject we should approach the matter, not from a British point of view, with the assumption that freedom for British women must necessarily carry with it a restriction of freedom for other women, but should argue the principle on the broad and universal ground that we are asking a larger measure of freedom for British women because we believe that in conferring freedom on women as such we are working on the fundamental and ethical principle of progress for ourselves and the whole world. If we could carry out legislation, affecting British women, as a piece of Imperial legislation, I do not think we are warranted in taking a restricted point of view. It seems to me perfectly clear that, whatever legislation we can pass, we shall be restricted in many real and fundamental ways by the existing legislation of other countries. Therefore, I ask the Mover of the Resolution and the Government, who, I sincerely hope, will take vigorous action in working out the consequences of this Resolution, not to be content with merely seeking to establish this as a principle in British law, but, because of the vital difficulties of applying this law, they will take the earliest possible moment for advocating in some responsible international authority that the whole of the marriage laws throughout the world shall be levelled up and standardised, not only in the interests of British women, but in the interests of the general conception of freedom of which this is a part. I have great pleasure in supporting the underlying principle of this Motion, and I hope that the movers of the Motion and of the Amendment will endeavour to come to some agreement which we can all endorse.
I do not think that any Member of the House can have listened without deep sympathy to the very strong case which has been made out by the Mover of the Resolution and by other speakers. I hope the Mover of the Resolution will insist on the terms of his Resolution. To my mind there is a deep and substantial difference in principle between the terms of the Resolution and the terms of the Amendment. The onus should not be on the woman at the time of marriage to say that she desires to remain a British subject. She should be entitled, as a matter of right, to retain her own nationality until such time as she may care to change it. This is a very important question. It is with great pleasure that I notice the Prime Minister is here. I wish that the Leader of the Opposition were also in the House. The only consolation is that we have the Leader of the Liberal party here, and I hope the gentlemen I have mentioned will appreciate the fact that this is not a mere party question, but one which affects women belonging to all parties. Many hon. Members here owe their seats to the work done by the women. I for my part would be the last to say that a woman is not entitled to every right possessed by a man and I agree with the hon. and learned Member for South Shields (Mr. Harney) that as a man is entitled to his nationality up to the time of his death, a woman citizen of this country is equally entitled to her nationality. I hope the Mover of the Amendment will agree to withdraw his proposal. The speech of the Under-Secretary to the Home Office was full of references to all sorts of policies for the future. I believe in Dominion councils, but I think when Resolutions have been passed repeatedly by our Dominions on this question, it is time for the Mother Country to give a lead. We are told, and I believe it, that the Mother Country has to give a lead on other matters connected with Colonial trade, and the present Government in particular, as a Conservative Government., should take its courage in both hands in regard to this matter. We heard too ranch about 1870 in this Debate. We want to hear something about what is going to be done in 1925, and I should like a definite statement from the Under-Secretary to the Home Office as to the Government's policy in this matter. The hon. Gentleman is here representing his Department, he sits within easy reach of the Prime Minister and I am sure after consultation with the Prime Minister he could ease our feelings on this question.
I should like to congratulate the hon. Member for Penistone (Mr. Rennie Smith), who has for the first time addressed the House, on his very able contribution to our Debate. I ask the Under-Secretary to the Home Office if he is not in a position to say a few more words on this matter regarding any legislation which may be introduced dealing with those who really suffer in this connection and those who have been instrumental in promoting this Debate. Prior to 1914 there was very little question as to the nationality of women who married aliens, but during and since they War many hon. Members have been deeply stirred by the cases brought to their notice of British women placed in positions of great difficulty and distress as a, result of existing legislation. So far as the years to come are concerned, I think it is time, after consultation with our Dominions, that we should try to obtain some alteration in the law. I do not entirely agree with the remarks made by the Noble Lady the Member for the Sutton Division of Plymouth (Viscountess Astor) or the hon. Member for East Middlesbrough (Miss Wilkinson) on this question, because it appears that, so far from demanding equality for men and women, they are asking for women something which they do not ask for men. I never heard it urged that a man who married an alien should have any option as to changing his nationality, and perhaps the Noble Lady will inform the House of her ideas on that subject. I sympathise with the object of the Motion, and also with the object of the Amendment, because I agree that it is "six of one and half a dozen of the other" whether the provision is for contracting in or contracting out. We affect to be a practical people, and we want to produce some practical results, and the practical good that we could do at the present moment would be effected if the Government could, following the last speaker, take their courage in their hands and promote such legislation as would alleviate the distress of those who have suffered.
So far as the future is concerned, I feel that this is an extraordinarily difficult question, because the various speakers to whom I have listened have treated nationality in different ways, but largely as a matter of right. But nationality is something more than a matter of right; it is a matter of the discharge of duties. It is also a matter of the discharge of duties according as those duties may be imposed upon you, and, therefore, different countries have different legislation on the subject. Even in the case of men who elect to change their nationality, we know that they may be British in England and yet of a foreign nationality in their own country, and the same would necessarily apply to women if they obtained this privilege. I hope they will obtain the privilege of that which is most to their advantage, but the Debate has shown that disadvantages may accrue, and, therefore, I hope we shall not be influenced merely by the fact that we have had a war and hardship, and rush hastily into some legislation which might have an effect which we had not foreseen. I hope the Mover of the Resolution and the Mover of the Amendment will compose their differences, and I heartily support the remarks that have been made by the Under-Secretary, because I believe that it is only after due deliberation that we can get legislation which will lead to the permanent benefit of the women mostly affected.
I should like to accept the proposal of the Mover of the Resolution, and ask leave to withdraw my Amendment.
Amendment, by leave, withdrawn.
Main Question put, and agreed to.
Resolved,
"That, in the opinion of this House, a British woman should not lose or be deemed to lose her nationality by the mere act of marriage with an alien, but that it should be open to her to make a declaration of alienage."
Trade Untons (Political Levies)
That, in the opinion of this Rouse, the decrease of membership of Trade Unions, largely due to the present system of securing political funds, is a matter calling for careful inquiry in the interests of industrial progress."
This Motion is out of order, as it deals with a question set down in the form of a Bill far a future date.
Pensions in Wales
I beg to move,
The conditions before the regional office was set up were these, that practically every day, in the mining valleys of South Wales, there were large processions, composed of ex-service men who were dissatisfied with the conditions, processions right through those valleys, and indeed, in some cases, the medical boards and the people serving on the medical boards had to secure police protection. When the original Pensions Office was set up all those grievances were abolished and a much more satisfactory state of affairs brought into being. To-day pensioners can appeal to people who both understand them, and can administer justice to them. I do not know what the arguments for the abolition may be; whether more satisfactory justice can be meted out in London than in Cardiff, and the further away you remove the office from the people concerned, the better would be the administration of the pensions system. If that be the argument, the only comment I wish to make is that it would be better to remove the office to Moscow or somewhere else.
The Minister, I understand, argues that if you abolish this region the work can be satisfactorily dealt with by setting up a Regional Advisory Committee. The point was made by the predecessor of the present Minister—I do not know about the present Minister—that the Regional Advisory Committee was a body set up to advise the Minister himself. It was to be the first advisory body to the Minister with regard to questions in Wales. I understand that that Regional Advisory Commission is composed of representatives from the Area Committees. The Regional Committee has in turn representatives upon the Central Advisory Body. A very significant thing is that the Regional Advisory Body is a body to advise the Minister with regard to pensions questions in Wales, and the first Resolution passed by this body was a Resolution asking for the retention of the Pensions Office in. Cardiff. If the Minister disregards the first resolution passed by this body set up to advise him, then what guarantee have we that the further demands by this Regional Committee will be attended to? There is another significant fact, that the Central Advisory Committee did not meet until recently, after the decision had been arrived at to abolish the Pensions Office at Cardiff. I will not mention the difficulty with regard to nationality. There is a large number of those pensions people in Wales who are Welshmen or people who understand English with great difficulty, and unless they are dealt with by people who understand their language and outlook there must be a serious miscarriage of justice. The men of Wales responded splendidly to the call of the War in 1914. They had the highest percentage in the Kingdom, and they are being treated at the moment rather in the way the Pied Piper of Hamlin was being treated. We have heard a good deal to-night about the question of nationality. Here is a case where nationality should be respected.
I beg to second the Motion.
I want to urge this point. Not only are the British Legion and the district councils in Wales unanimously against this alteration, but the Welsh people all over the country are incensed, at the action of the Minister. All the Welsh Members in this House, if there were opportunity and time to-night, I am sure would be prepared to rise in their seats and protest. I want to press this point upon the Minister. There is the question of nationality, which we are entitled to uphold. There is the title of language. Those Welsh boys who went to fight the Germans find their own limitations of language have been used to deprive them of their fair right to pensions. I will give an instance where a Welsh pensioner presented himself before an Englishman, and was unable to make himself clear to the Englishman with his limited knowledge of languages. He found on his certificate, not a report of his physical condition, but a most, insulting reference to his, mental capacity. Some of these instances have got abroad in Wales, and I can assure the Minister that if he saves £9,000 it will he at the cost of alienating the sympathies of the people of Wales.
The hon. Member who moved this Resolution made statements which, I think, show perfectly clearly that he did not understand in the least the administration of pensions in Wales. The Resolution talks about the hardship that is going to be inflicted upon the pensioners in Wales, and I listened very attentively to hear whether he produced my examples of injustice or hardship that would be inflicted on any pensioners in Wales by the change we propose. It is not a new proposal. It was a proposal first of all started by the late Pensions Minister last year. [HON. MEMBER: "No!"] It was proposed a year ago by the late Pensions Minister, and has been adopted by my right hon. Friend who at present administers he office, and I am perfectly certain neither of them would have adopted t if there had been any question of any hardship to any pensioner in Wales. is a matter of fact, the pensioners them-elves would never have known anything vas going to happen, as the whole administration, so far as it concerns the pensioner, will remain exactly as now. The unit of administration is the local office. If any man wants to make a new claim for pension, or has any complaint to make, it has to be received at the local office. The procedure will be exactly the same as at the present time. There will be absolutely no difference whatever so far as the pensioner himself is concerned. The local pensions office procedure will be exactly the same as at the present time. The only change there will be is this, that hitherto the actual awards, the making of which is automatic—
rose in his place, and claimed to move, "That the Question be now put," but Mr. SPEAKER withheld his assent, and declined then to put that Question.
Will the Scottish Regional Offices be removed as well as the Welsh Regional Offices?
That is not in this Resolution.
We had a statement made in Cardiff that all the regions were going to disappear.
It being Eleven of the Clock, the Debate stood adjourned.
Trade Facilities [Money]
Again considered in Committee.
[Mr. JAMES HOPE in the Chair.]
Postponed Proceeding resumed on Question,
"That it is expedient to amend the Trade Facilities Acts, 1921 to 1924—
Question again proposed.
It being after Eleven of the Clock, and objection being taken, to further Proceeding, the Chairman left the Chair to make his Report to the House.
Committee report Progress; to sit again To-morrow.
Pensions in Wales
Motion made, and Question proposed, That this House do now adjourn."—[ Commander Eyres Monsell. ]
Is it possible for the House to continue the discussion which closed a few minutes ago?
I simply want to raise a point of Order, and ask your ruling, Mr. Speaker, how I may further raise the question which I put a few moments ago to the Parliamentary Secretary when he was on his feet? On 14th January, at Cardiff, an official statement was made that all the regions in the course of time would he abolished. Yesterday, in answer to a Scottish Member, the Member for Springburn (Mr. Hardie) the Minister of Pensions, who replied, used these words:
"The matter has not yet been discussed."
That was the removal of the work of the Scottish Region to London. I give notice that when the resumed Debate in Supply on the Pensions Estimates takes place I shall call attention to this matter, and also to the disgraceful shame that has been brought upon us in regard to the discreditable method in which the awards have been carried out during the last 18 months. Men are now appearing before the Poor Law Union. Being allowed no unemployment benefit, they are now on Poor Law relief. It is a great shame, and I shall call attention to it.
In Wales we have known nothing of the removal of the regional offices or would have known nothing in the ordinary way, and what has been put forward in defence that no injustice is being done is no argument. A proportion of these men have been sent to English institutions. There was an instance given by one of my hon. Friends as to the difficulty of dealing with them by the English doctors who do not understand the language. These men are being classed in the medical reports as wasters. There is an instance which is public property where one man was described as a waster. He is known to the people on the spot. It can be said definitely that he was a good soldier and a hard-working man; yet because of the language he has been placed in this serious difficulty. It is no argument to draw a parallel between this region in Wales and the regions in England. You have no language difficulty, and no difficulty of nationaltiy such as there is here. The Welsh people have clamoured for this; 200 councils, district councils, county councils, and public authorities and ex-service men's associations all passing resolutions. The whole of the people are asking that this office should be retained. It cannot be conceived that they are asking for its retention for the sake of spending public money, which they have to find. These people have a full sense of responsibility, and they ask for the retention of the office because it is necessary for the just administration of the pensions system. The Under-Secretary says there will be no difference, but there will be the difference that the documents relating to a man—awards, documents, the man's history—will be transferred to London. The man would be examined, as he was before, at Cardiff or in his own area, I agree, but there would be delay while London was being consulted, and may be in some cases delay that would mean life or death to the man himself.
These are questions that have to be met, in justice to these people. They are the people we were prepared to do everything for during the, War. Now we are to make this change; for the sake of £9,000 we are to repeat the conditions which existed in these mining villages before the region was set up. It is a very little thing to ask. What of the question of economy after the undertaking given last week that alternative employment was to be found for the people engaged in the office at Cardiff? If you bring these documents from Cardiff to London, it means yon must employ additional clerical staff in London to deal with them. If the case is dealt with at the Cardiff Regional Office there is a guarantee that the whole of the man's documents will come before some responsible official; in London they may come before no one but a Grade I clerk, and therefore substantial injustice might be done to the man. The effort of the Minister of Pensions in recent years to save public money is laudable enough, but I do not think the Minister can deny that many pensioners have suffered unfairly and unwarrantably through ignorance and lack of knowledge of the Regulations. Acts of Parliament have been passed, but the only information these pensioners can get is the information they would get from the "Times." How many of these people ever see the columns of the "Times"? How are they to know what their rights are? A large and substantial body of these people have been deprived of their legitimate rights simply through ignorance. If you move the office to London you will have to employ additional clerks. Economise by all means, but retain this office in Cardiff and reduce the work pari passu with London.
I would appeal to the Minister of Pensions and the Under-Secretary to reconsider the position. I rather regret the attitude which was taken by the Under-Secretary, and, if I may say so, the tone in which he answered a demand, which was a demand from practically the whole of the Welsh Members. I should be very surprised if any hon. Member opposite were not in full sympathy with us on this particular matter. I ask the Minister of Pensions not to consider the answer which has been given as final, but to give an opportunity to the Welsh Members to communicate with him further on this subject before he finally gives his decision. I had a good deal to do along with my colleagues with the raising of the Welsh troops. We have a million of Welsh speaking people and a large number of them speak Welsh and Welsh alone. Welsh is the oldest language in these islands. I remember at the beginning of the War there was no part of the population which responded more patriotically or readily than the purely Welsh-speaking population of Wales, and the, War Office sent Welsh speakers to them. The Government were quite willing to respect the Welsh language when they wanted Welshmen to fight. They sent out Welsh-speaking officers, and the national sentiment then was all right. I remember that. Lord Kitchener consented to this course, because he thought it was a wise concession to make.
We raised the Welsh Division, and Welsh sentiment was respected in every sense. Now, when the War is over and these poor people have broken down, a question of £9,000 a year in pensions administration counts. Perhaps £9,000 a year is a very important matter, but there is something much more important, and it is that you should honour the patriotism, zeal and sacrifices of these men and the pledges given to them. This is a question which arouses a good deal of feeling in Wales, and there are several instances recently where the Welsh language has been treated with scant courtesy by English officials, some of them very exalted, and we shall raise this matter in due course. All this agravates the situation, and the answers which have been given are not really worthy of this House when you are dealing with a question of national sentiment, The Government thinks this £9,000 is a small matter, but these people are loyal and were always ready to serve their native land and defend the flag and the honour of this country when it was in peril. I beg the Minister to treat this as a matter of sentiment and honour, and not give that as an irrevocable answer, but consent to give the matter further consideration.
If, in the few minutes in which I had to reply, I gave any impression of brusqueness or incivility to the House, I beg to offer my apologies. I had not the smallest intention of doing anything of the sort. I only had two minutes in which to say what I had to say, and, if I may say so, I tried to get in as much as I possibly could. Perhaps I may be allowed to deal as briefly as I can with what I really think is the misconception of the hon. Member who moved the Motion. He thinks that all the man's papers are going to be taken away and kept in London. The unit of administration, however, is still going to be the local office, and there the man's papers and everything that has to do with his case will be kept, except his awards file. My reason for saying that the interest of the pensioner will not be affected is that up to a point what may be called the personal element, the personal touch with the pensioner, is going to remain exactly as it is at present. These regions were never intended to be permanent. They were brought in in 1919, at a time when everybody knew that the Ministry, a new one, was overwhelmed with work; and with the best intentions in the world it was not able to cope with the great volume of work it had to do.
Does that apply to Scotland?
It applies to all of the nine regions that were set up.
Why begin with Wales?
If the hon. Member will allow me to deal with the matter as fully as I can, I will tell him all about it. I will give instances of what may happen in the different cases which may occur. Suppose that a man put in an entirely new claim. At present his first act is to go or to write to his area office, and he there fills in an Article 9 claim. He is then called up for medical examination—again from the area office. He is examined by a medical board in Wales, by Welsh medical officers, and all the arrangements for that medical board are under the control of a Ministry medical officer stationed in Wales.
Welsh-speaking?
I will deal with that. Under our new proposals the procedure will remain exactly the same.
Do I understand that under the present procedure of an Article 9 claim, the medical officer or the regional director will have the documents there, so that he can refer to the man's whole medical history, or that the whole of the documents will be in London, and that there would be a consequent delay in his examination?
The hon. Member is mistaken as to what an Article 9 claim is. It is a new claim by a man who has never claimed before. Suppose, on the other hand, the case of a man who has established a claim and requires treatment. He applies to his local office, and the local war pensions committee and area office, in conjunction with the Deputy Commissioner of Medical Services in the area, make all the arrangements. That is what is done now. The pensioner receives any allowances due to him whilst under treatment each week from the area office. That will remain exactly the same as at present. Then take the case of the re-boarding of a pensioner. Here there occurs the only change in our procedure, and that is that, when it comes to his time, or near his time, to be re-boarded, the Awards Section in London send the medical documents down to the place where he is to be re-boarded, instead of their being sent, as hitherto, from Cardiff. The procedure is then identical with what is in operation now. The man will be boarded in exactly the same way as at present. He will be summoned to the board by the local chief area officer, and boards will be arranged as at present by the Deputy-Commissioner of Medical Services. That is the whole procedure as far as the pensioner is concerned.
What will happen after he has been boarded at Cardiff? Will the people in Cardiff have the power to assess the man's compensation, or does the case go back to London to be dealt with by people not knowing the circumstances or anything al all about the case?
No. What is done is that when the man is boarded the board assesses him. That assessment is done by the board, which sees the man, and when it has assessed him at such a percentage of disability the award is automatic. There is no question of any thing more being done. If the board assesses the man at, say, 70 per cent. disability, there is an automatic award that he gets this 70 per cent. disability, and that is going to remain exactly the same. Let me deal with the question of applications from widows and dependants. All the local assistance they can get now—for widows and dependants to obtain their pensions—will continue. They will have exactly the same powers as they have now and exactly the same assistance will be given as at present. Investigation into these cases has to be made and it will be made, as at present, by Welsh officials who are attached to the local offices and, in the case of monoglot localities will be done entirely by Welsh-speaking officers. That has been the system all the time up to now and that system is going to continue in the future. Now we come to the change. Hitherto in cases of new claims, after the man has been boarded and assessed the papers were sent to Cardiff. There the automatic operation came in of awarding the pension due to the extent of disability, and then, after that, a notification of the award had to be sent to London in order that the issue should be put into force. The only change is that, instead of the papers going from the place where the man has been boarded to Cardiff and from there to London, they are going to be sent direct from the place where he is boarded to London, to the Awards Office, which is in the same building as the Issue Office, and then the pension is put into issue at once. The hon. Member who moved the Motion said that he was convinced that there might be considerable delays by the new system. The probability is that there will be less delay, because you cut out one process altogether. Hitherto the process has been to send the papers from the place where he was boarded to Cardiff and thence to London.
Will it cut out the delay when they are sent to Scotland?
I will deal with one point at a time. The hon. Member wanted to know how there were going to be any savings. I have the figures here. First of all we get rid of a considerable amount of office accommodation, and that includes rent, rates, cleaning, fuel and light. In addition to that we save a considerable amount of staff. We immediately save a regional finance officer, a regional awards officer, a regional registrar and several supervisory and controlling officers. In addition, there is a certain amount of subordinate staff. It is obvious that where you have the administration of a large amount being done, as at present, from London, you will save in your supervisory staff immediately. The hon Member for Pontypool (Mr. Griffiths) asked, "Why start with Wales?" I have no doubt that he would wish Wales to be first in all cases. As a matter of fact we did not start with Wales. We have already reduced several regions. The hon. and gallant Member opposite will not agree with me when I say that we have reduced a certain number of regions. He says that we have only combined two. We have already done away with the regions in Ireland and brought the work to London. We have done away with the south-western region. We have been proceeding on the lines of doing away with the regions which were intended to be only temporary; we have gone on the lines of doing away with them as the work falls off.
Does the hon. and gallant Member suggest that Ireland sent anything like the same proportion of troops to the population as did Wales?
Or that they had the same difficulties?
Or that they had the same difficulties?
I am dealing with the a-mount of work that has to be done in the regions, and as the work has fallen off we have been gradually getting rid of the regions. They were put there only as a temporary measure. When they were first started they were never intended to be permanent, never intended to be a really established part of the pensions' system. They were only to be there for a definite purpose which was to try to bring order out of a considerable amount of confusion existing at that time because of the immense amount of work thrown on a very young Ministry which had net had time to establish itself firmly. That position of affairs no longer obtains. At the present time we are abreast of the work. The reason we are getting rid of the regions by degrees is that as the work falls off we desire to bring the remainder to London and to concentrate it here. By doing that the pensioner will not suffer. I am perfectly convinced about that. There is no question about it but that we can make considerable economies in administration, and it is only in administration that the Pensions Ministry can make economies.
My right hon. Friend the Minister of Pensions has already, in answer to a letter which has been sent to him asking whether he would meet the Welsh National party, written to say that he is prepared to do so, and will arrange a time and date that is convenient for the parties to meet. I hope that I have been able to explain to hon. Members that, however much they may regret the idea of the region having to be done away with, it is not intended to be in any way an insult to the Welsh nationality. It is only done because it does save money. It does not affect the pensioner in any way. I honestly believe that he will not suffer in the least, and I believe that if hon. Members will look into it—I could give them the figures as to the amount of work—they will agree that the only course which a Minister could take in the interests of efficiency and economy would be to carry out these proposals and gradually to concentrate the work in London, and that this will not affect the pensioner in any way whatever.
Seeing that the Minister has replied to the secretary of the Welsh party stating that he is willing to meet that party, will he defer a definite decision until he has seen them?
No, I cannot.
Then what is the use of it?
I cannot. The, late Minister of Pensions had already decided on this, but as a matter of courtesy to Wales we waited so as to give the Wales Advisory Council a chance of meeting us. we are merely carrying out a decision to which the Labour Government came some time ago.
Is the right hon. Gentleman aware that his predecessor had promised to reconsider the matter with a deputation of Welsh Members?
No, I can contradict that, because I have seen the file. What he did was to have a discussion with the Welsh Advisory Council as to whether he could see his way to meet them before adopting this change, but he was not able to do so owing to the General Election. Since then my hon. and gallant Friend the Parliamentary Secretary has been to Cardiff and met the Regional Council. I shall be most happy to meet the Welsh Members—
It being Half-past Eleven of the Clock, Mr. SPEAKER adjourned the House without Question put, pursuant to the Standing Order.