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Commons Chamber

Volume 220: debated on Monday 23 July 1928

House of Commons

Monday, July 23, 1928

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

Private Business

Dover Harbour Bill [ Lords ],

London County Council (Ilford and Barking Drainage) Bill [ Lords ],

Read the Third time, and passed, without Amendment.

Southampton Corporation Bill [ Lords ],

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

Nottinghamshire and Derbyshire Tramways (Trolley Vehicles, etc.) Bill [ Lords ] (by Order),

Read the Third time, and passed, with Amendments.

Oral Answers to Questions

India

Detenus

asked the Under-Secretary of State for India the names of the three persons who have been arrested under Regulation 111 of 1818 during the last six months?

The three persons are the ex-Maharaja of Nabha, Dasaundha Singh and Gajjan Singh.

asked the Under-Secretary of State for India whether the two Sikhs who got into trouble at Shanghai, and who are at present under arrest under Regulation 111 of 1818, were serving soldiers; and will he state the nature of the offence which led to their arrest?

The answer to the first part of the question is in the nega- tive. They were deported to India from Shanghai on the expiry of sentences of imprisonment there for possessing seditious matter with intent to distribute and of conspiring to cause disaffection among the King's subjects, and were arrested on arrival in India to prevent them from pursuing their seditious activities.

Can the noble Lord say how long it is proposed to keep these two Sikhs in custody?

Compensation Claim, Burma

asked the Under-Secretary of State for India whether he proposes to take action on behalf of Mrs. and Miss Jewett, who have since 1917 been endeavouring to obtain adequate compensation from the Government of Burma for their mining property; and whether he will inquire into all the circumstances of the case?

The Secretary of State in Council has already over a period of several years most carefully considered all the circumstances in consultation with the Government of India and on their recommendation offered a compassionate grant of Rs.15,000 to these ladies in addition to a payment of Rs.10,000 previously made in India and in full satisfaction of their claims. This offer was declined, and my Noble Friend does not propose to take further action.

Cannot the Noble Lord see his way to pay this on account, having regard to the dispute that has arisen over this matter, in order that they may have time to consider their position?

No. I have gone into these papers, as has the Secretary of State, and I am convinced that the offer that has been made is a proper and generous one, and that the ladies having declined to accept, the matter falls to the ground.

Is the Noble Lord not aware that these people are not at all satisfied that it is a generous offer?

I dare say they are, but that does not appear to me to affect the matter at all. Where there are two parties to a contract, one party is often not satisfied. There is not the slightest chance of this case being reopened. If the hon. Gentleman has any influence with these ladies, he ought to tell them that they would be well advised to accept the very generous offer made to them.

When the Noble Lord went into the case, did he satisfy himself that the officials who gave the concession elsewhere were free from any blame? Did he look into this question solely from the point of view of the compensation to the ladies, or did he also consider whether the officials who gave the concession elsewhere were blameable in the matter?

The matter was very fully gone into, and I am convinced that the offer made to these ladies was a perfectly proper and generous offer, and that it would not be in the interests of the taxpayers to make a further offer.

I am asking about the responsibility of the officials whose action forced the Indian Government to make this offer?

If the right hon. Gentleman can tell me in what way that arises out of this question, I shall be happy to answer him. Perhaps he will put a specific question on the Paper.

Will the Noble Lord inquire into all the circumstances of the case, not only into the question of the compensation due, but why liability to compensation arose?

My Noble Friend has already inquired into all the circumstances of the case and is convinced that the offer made is a proper offer in the circumstances.

Of course, it was under inquiry at the time the matter was gone into, and there is no reason to take any action against them, because no blame is to be attached to them.

Assessment Revision, Bombay

asked the Under-Secretary of State for India if he will inform the House as to the present position regarding the Bardoli land assessment dispute?

asked the Under-Secretary of State for India whether, seeing that the Bardoli people have offered to the Government of the Bombay Presidency to accept the findings of an independent and open re-inquiry into the equity or otherwise of the new land assessments in the Bardoli district, he will state whether the offer has been accepted, and, if not, on what grounds?

The present position is that the leaders of the agitation have declined to accept the Governor's proposals, conveyed to them during his visit to Surat last week, for the termination of their opposition. Sir Leslie Wilson has to-day therefore indicated to his Legislatve Council that if within a fortnight he receives a clear assurance that the agitation will cease and if the land revenue due on the revised assessment is paid into the Government Treasury, the Government will be prepared during the next cold weather to grant an official inquiry into any alleged errors of calculation or fact affecting the whole or individual assessments. If, however, the conditions mentioned are not satisfied, then the Government will take all necessary steps—which, I may say, have been carefully elaborated—to enforce compliance with the law and to crush a movement which would then be clearly exposed as one directed to coercing the Government and not to representing reasonable grievances. In this the Bombay Government would have the full support of the Government of India and of His Majesty's Government.

I will circulate in the OFFICIAL REPORT the text of Sir Leslie Wilson's statement in the Bombay Legislative Council.

Does not the Noble Lord think that, in view of the fact that in this area, as well as in the greater part of India, the peasants are coming more under the control of the money- lenders, the request to pay the old assessment until a Committee of Inquiry has been set up, is a reasonable one?

No, Sir; I do not think anything of the sort. If, whenever a re-assessment of a district in India were made, the people refused to pay taxes on the ground that the re-assessment was not a proper one, all constitutional government would come to an end. The Government of Bombay have the full support of His Majesty's Government in the action that they are taking to prevent this illegal and unconstitutional agitation continuing.

Is it not the case that these people have very little constitutional power, and do they not claim that, according to the statutory Regulations—

The hon. Member had better put that question on the Paper.

Extract from Speech by His Excellency the Governor of Bombay at the opening of the Session of the Bombay Legislative Council, Monday, 23rd July, 1928.

The subject on which I desire to speak to you and on which it is, to my mind, my obvious duty to address you, is one which has possibilities of being of even greater importance. I need hardly say that I refer to the present situation in the Bardoli Taluka. It is desirable, in the first place, that I should put before Honourable Members a short history of what has occurred since the start of this unfortunate dispute, which has now assumed proportions entirely out of keeping with the actual cause. On the 6th February I received a letter from Mr. Vallabhai Patel informing me that if an impartial committee clothed with adequate authority was not set up to examine the whole question afresh with regard to the reassessment, the cultivators would refuse to pay the whole of the revised assessment. He added that he had warned them that the struggle was bound to be protracted and might cost them their holdings. Undeterred by the consequences which must inevitably follow that action, they determined to refuse to pay any of the land revenue legally payable to Government, coming to that decision only six days after the letter to which I have alluded was received, and even before it had been possible for a reply beyond the usual formal acknowledgment to be sent to the letter. The letter contained technical arguments which required a considered reply from the Department concerned, which was despatched without delay. Government thereupon, as was its duty, began to put in force the penalties under the Land Revenue Code, of which penalties the occupants of the land refusing to pay. the assessed revenue had been warned by Mr. Patel. Honourable Members will remember that at the end of the Budget Session, Government was definitely challenged on this very issue. Government accepted the challenge, and this Honourable House by a majority approved the policy which Government had announced with regard to this question. The next chapter in the history of this dispute opens by the visit of some Honourable Members of this House to Mahableshwar when, in an interview with two of these Honourable Members, I informed them that I was much distressed at the attitude adopted by many of the occupants of the lands, and that I did not think that the position of Government in this matter was fully understood. I explained to these honourable gentlemen that Government had no idea whatever of doing any injustice; that while Government was convinced, after the most careful inquiry, that the reassessment was not only just, but even generous, I agreed that mistakes might possibly have been made in individual cases, although, after most careful inquiry, I did not myself see how this was possible; and I informed them that if any occupant or group of occupants thought that he or they were unjustly treated, Government had decided, on the representation of any case to the Collector or Commissioner, after the revised assessment had been paid, to reconsider the reassessment, and instructions had been sent to the Commissioner to that effect. So far as I was aware, this assurance on my part fully satisfied the Honourable Members concerned, but further correspondence ensued. When the Honourable Members left Mahableshwar, Government was satisfied that they appreciated and agreed with the suggestions of Government, which were that Government would be prepared to grant a fresh inquiry provided that the revised assessment was paid up. Unfortunately, there was for some reason a change in their attitude later. Government went still further at a later date in May, in order to satisfy the occupants of the lands that no injustice could fall on them, for we definitely promised, through my Honourable Colleague the Minister for Education, a fresh inquiry on the same terms. I really do not see what Government could have done more. Since that date constant efforts have been made by myself and members of Government to bring about a settlement, and Honourable Members are aware of the fact that I personally visited Surat as recently as last Wednesday in the hope that such a settlement might ensue. No settlement was, however, achieved, and it is not possible for Government to delay any longer in making known its final decisions. Government is of opinion, and I feel sure that Honourable Members will agree, that any announcement on a matter of such importance as this should be made to the elected representatives of the people of the Presidency, more particularly in view of all that has happened during the past few months and also in view of the vote taken on this question in the Budget Session. Not only is this the proper course to pursue, but it is the constitutional course, and I have endeavoured, since I have been here, to act entirely in the most constitutional manner possible. I therefore take this opportunity of putting before this Honourable House the views of Government as to the present situation and the definite and considered decisions of Government which have been approved by the Government of India. I say with intention that these decisions have been approved by the Government of India because issues have been raised in Bardoli which have a very wide significance, and, indeed, it is common ground that this question has become one of all India importance. So many speeches have been made by public men and others during the past few weeks on this subject that it is not a surprising fact that some confusion of thought arises. My Government had always had it impressed upon them that the issue was a very clear one, namely, whether the reassessment of the landholders in the Bardoli Taluka was a fair or unfair one. If, however, Government is to judge what the issue is on speeches and letters which have been spoken and written lately, and on actions which have been, and are being, taken to interfere with the administration of the district, the issue might appear to be a much wider one, and, in fact, one which in a sentence is, whether the writ of His Majesty the King-Emperor is to run in a portion of His Majesty's Dominions or whether the edict of some unofficial body of individuals is to be obeyed. That issue, if that is the issue, is one which Government is prepared to meet with all the power which Government possesses and by the decision of the representatives of the people of the district, as to whether they accept or not the conditions which Government lay down before any inquiry can be promised, it will be clearly demonstrated what is the issue before Government and the people of this Presidency and before the Government of India. If the only question to be dealt with is the justice or injustice of the reassessment, then Government is prepared to submit the whole case, after the revenue now due to Government has been paid and the present agitation entirely ceases, to a full, open and independent inquiry as outlined in the statement which has been published. In making their proposals, Government are anxious, above all things, that the agriculturists of Bardoli Taluka shall be relieved, as soon as possible, from the unfortunate situation in which they have become involved as the result of the campaign against the payment of land revenue, the justice of which has been disputed by some Honourable Members of this House. I, therefore, on behalf of my Government, put before Honourable Members the same proposals I put before those who came to see me at Surat as representatives of the cultivators of Bardoli Taluka. These proposals have been published and it is not necessary for me to restate them; but I must make it quite clear that they are not proposals put forward as a basis for compromise, but the definite and final decisions of Government. They are fair proposals and must commend themselves to the mind of any moderate man. They contain certain conditions which must be fulfilled before any fresh inquiry can be promised, and these conditions cannot be altered. I will mention one point only with regard to these proposals, and that is with regard to the demand on the part of Government for the payment of the revised assessment. This is obviously a vital condition, being a lawful and constitutional demand, the repudiation of which is both unlawful and unconstitutional. At Surat I was informed that the condition of the payment of the revised assessment would not be accepted, and consequently no settlement was possible. I would, however, remind Honourable Members, especially those Honourable Members who are the elected representatives of the people living in Bardoli Taluka, that it is their constitutional right to speak on behalf of, and decide in, the interest of their constituents. Those Honourable Members, and the Honourable Members of this House, must have, I am convinced, first of all in their minds the welfare of the agriculturist, and I sincerely trust that those interests will be the only ones which will actuate all Honourable Members in this matter. It is, of course, impossible for the present situation to continue, and a final decision must be arrived at as soon as possible. Government would, therefore, ask the Honourable Members concerned to communicate their decision as to whether or no they, on behalf of their constituents, accept or refuse the conditions, which must be fulfilled before a fresh inquiry can be set up, to the Honourable the Revenue Member within 14 days from today. I cannot believe that, realising the consequences of a refusal, the grave hardship on the agriculturists, the bitterness of feeling which will be engendered, and the inevitable result of any conflict which must ensue between Government and the people concerned, these proposals will be rejected. It is, however, my duty to make it perfectly clear that, if these conditions are not accepted, and consequently a settlement is not secured, Government will, in order that there shall be full compliance with the law, take what action they consider desirable and necessary, and will utilise all the powers at their command to ensure that the statutory authority of Government is maintained in every way. Neither the Government of Bombay, nor any Government, could tolerate a position in which private individuals attempt to put themselves above the law or take part in organisations which have the effect of inducing others to do so. To permit that is the very negation of Government, and it is not conceivable. whatever may be the consequences, that any Government worthy of the name of Government in any country would not take every step in its power to prevent or put a stop to any such action. I have not made these remarks so that they might be considered in any way as a threat. Nothing is further from my mind. They are merely a statement of facts, but it was my obvious duty both to this Honourable House and to the people of Bardoli Taluka to make them so that the position of Government cannot again be misinterpreted or misunderstood. No one will deny that there is a campaign of civil disobedience in Bardoli Taluka at the present time, and it is perhaps unnecessary for me to remind Honourable Members that civil disobedience is an act of lawlessness, however convinced those who are participators in that act may be that their case is just; and lawlessness is none the less lawlessness because it may be fostered or encouraged by persons holding strong convictions, or because its practice may evoke from some men and women qualities worthy of a better cause. Moreover, it would be well that public opinion should clearly realise the inevitable consequences of disregard for law upon the structure of any political society. Once men can convince themselves that it is proper to set at naught the legally constituted executive authority whose duty it is to administer then it is but a short step to challenge the title of the legislative body whose function it is to make the law, or to impugn the impartiality of the judiciary by whom the law is interpreted. Thus respect for law is fundamental in every sphere of social life, and to seek to supersede it by the private will of any citizen or body of citizens is to head straight for anarchy.

I have now one personal remark to make. I have taken on myself to address the House on this question, which I could have left to the Honourable the Revenue Member, because I thought it my duty to do so as head of the Administration. In the four and a-half years and more during which I have been head, I have endeavoured to associate myself intimately with the desires and aspirations of the peoples of this Presidency and to assist so far as I could in their troubles, as in the case of the floods in Gujerat, where all this difficulty now happens to be. In the first speech I made to this House I said that, so long as the opinions of the people were expressed to my Government in a constitutional manner, so long would they be received with every sympathy and consideration. I am justified in saying that such opinions have been so received, and I hope, and believe, that they have on all occasions received every consideration. It is indeed a sad thought to me that at the end of my term of office my Government is faced with a situation such as now confronts us when unconstitutional methods such as civil disobedience are being supported by a section of the people, and particularly when Government has never, I am prepared to assert, been unwilling to meet the reasonable wishes of the members of this House constitutionally expressed. I know you will believe me when I say that I am a friend of India, and particularly of this Presidency where I have received nothing but kindness and courtesy during my time, and that I look forward to the progress and prosperity of India in general, and Bombay Presidency in particular, with every hope and with a feeling of certainty that nothing can mar that progress, political and economic, except some action which, while it may be born only of a demand of the moment supported by a certain amount of public sympathy, still may leave wounds behind which it would take many years to heal; and until they were fully healed that progress to which I have alluded would be hindered if it did not cease altogether. I would therefore, as one who is, I hope, entitled to call himself your friend, urge with all the emphasis in my power that you should consider not the minor questions involved in this trouble but the major ones, and that you should endeavour to put yourselves in the position of Government, for if you do that you must come to the decision that Government has met the cultivators of Bardoli fairly, even as I have tried in my time here to mete out to all, whatever their class, creed or race, justice tempered with humanity. I have no more to say. I ask you not to take any hasty decisions, but to think well over all the grave issues involved and what I have said and, if you do, I have no doubt myself but that the sound common sense which has always been the guiding star of Bombay will again, as it has done in the past, lead you to a decision which will put an end to a situation fraught with grave possibilities, how grave no one to-day can foretell. You have often taken my advice in the past and I have much gratitude to you for doing so. I ask you to do so now on what I fully realise is the most important issue on which I have ever spoken to you.

Ex-Maharajah of Nabha

asked the Under-Secretary of State for India whether the detention of the ex-Maharajah of Nabha is punitive or preventive in its purpose, and how much longer it is proposed to continue this detention?

The detention of the ex-Maharajah is essentially preventive in its purpose. No period of detention has been fixed.

In view of the fact that this is preventive in its purpose, would any kind of undertaking be sufficient to bring it to an end; that is to say, if he would enter into some undertaking of good conduct or something of that kind, would that bring it to an end?

I think it had better be left in the hands of the ex-Maharajah. I could not deal with this in answer to a question by an hon. Member. It is for the ex-Maharajah and not an hon. Member to give an undertaking.

Can the Noble Lord say whether the application which was made by this man some time ago for passports to England, which would re- move him from the area of possible disloyal action, would now be considered favourably?

Railway Strike, Madras

( by Private Notice ) asked the Under-Secretary of State for India if he is in a position to give the House the latest information in regard to the railway strike in Madras and the disturbances connected therewith; how many Indians have been killed and injured, and how many Europeans; and whether he can state if any of the persons engaged in rioting and other disturbances were armed; and if he will also state what steps, if any, the Governor of Madras is taking to bring the dispute to an end; and whether there is in existence, or under consideration, any effective machinery for conciliation and arbitration in matters of dispute between the State authorities and the workers engaged in the Railway Services?

In view of the importance of this matter, I must ask your permission, Mr. Speaker, and the indulgence of the House to give a somewhat lengthy reply. The following information was telegraphed by the Government of India on 22nd July:

"The strike extends to all the menial staff on the metre gauge system, but the Agent reports that the running staff and station subordinate staff remain loyal, as well as the staff on the broad gauge. On the 18th July the Agent was asked by the President of the Strike Committee to agree to arbitration by the Madras Government's Labour Commissioner on four points, namely (1) lock-out pay, (2) absorption of surplus workmen, (3) the wages of the menial staff, (4) the grievances of the running staff. The Agent agreed to arbitration on the latter two points, provided the general strike were cancelled, but the President of the Strike Committee refused to put this reply before his Committee and the strike commenced at midnight on 19th July.

Intimidation is widespread, and the strikers are attempting to stop the running of trains at many points. On 20th July there was continued rioting and stone throwing, and at Mayavaram the police were compelled to fire on the strikers. Nine police were injured by stone throwing by a large crowd, one of them having his arm broken. Fire was opened under orders from the district magistrate who was on the spot. Eleven rounds of ball and 12 of buck shot were fired. The number of casualties is not known as it was dark at the time. Fifteen arrests were made and the situation was brought under control. Great damage to railway property was done at Tuticorin. I have just received a telegram which reports that the deputy magistrate at Tuticorin ordered firing on the 21st July. One man was shot dead and another was bayoneted. The situation is temporarily in hand but more men are required. The boat mail from Ceylon was derailed near Tanjore by malicious obstruction but without casualties. On the night of the 21st the boat mail was derailed again by the removal of fish-plates, and one person was killed and 10 injured. The Government of India have seen reports from news agencies of other cases of violence, but have no direct confirmation except in regard to the cases mentioned above. They have informed the Government of Madras that they may count on their fullest support in all necessary measures."

The Government of India intend to introduce a Bill to deal with trade disputes in the forthcoming session of the Indian Legislature. As regards other methods on the railways of dealing with matters in dispute, I gave the hon. Member some information on 17th May last.

Ceylon Constitution (Commission's Report)

asked the Under-Secretary of State for India whether the Report of the Donoughmore Committee on the Ceylon Constitution will be communicated to the Indian Government?

The Report is a public document, and it is reasonable to assume that the Government of India will have provided themselves with copies of it as a matter of general interest.

Has the Noble Lord read that Report himself, and, secondly, is there a chance of the Simon Commission considering this admirable document, particularly the chapter dealing with communal representation?

I think the right hon. Gentleman is aware that I cannot take responsibility for what the Commission will consider. It is a matter entirely for them, and it is not really a matter to be discussed on the Floor of the House. With regard to the second point, I have not read the document, though I hope to do so in due course. Officially, I am not concerned with it in the slightest degree.

Is the Noble Lord aware that it deals very largely with a matter of vital importance to the people of Ceylon as well as the people of India?

No. It would be difficult to deal with that point in answer to a question. Although I hope, for my own information, to read the Report, it is quite clear that officially it has nothing to do with the Government of India.

Is it not a fact that no one would expect the Noble Lord to read such a voluminous Report within a week of its appearance?

asked the Secretary of State for the Colonies whether any action taken as the result of the Report of the Donoughmore Committee may be expected this year?

asked the Secretary of State for the Colonies what action he proposes to take in regard to the Report of the Special Commission on Ceylon?

I am giving the Report my careful consideration, but I can make no estimate at the moment of the time which must elapse before any definite action can be taken on the proposals which it contains, or what that action will be.

How was it that the report found its way into the hands of a certain section of the Press before it was available to Members of the House, or to other sections of the Press?

Is there any possibility of extending the terms of reference of the Committee, so as to enable it to deal with other cognate Crown Colonies in the same way?

I thing it would be asking rather too much of the members of the Committee to suggest that they should go out to other Colonies, but, of course, the experience which they have gained will be of value in regard to other Colonies.

Is it not in accordance with the right hon. Gentleman's principles that we should co-ordinate the Colonies, by applying to Colonies in the same stage of development, the same principles and, therefore, the same Committee of Inquiry?

Straits Settlements (Social Hygiene)

asked the Secretary of State for the Colonies whether the Under-Secretary of State, on his recent visit to the Straits Settlements, investigated any of the problems dealt with in the 1924 Report on Social Hygiene; whether the situation is now better or worse than at that time: and whether any further steps are to be suggested or taken to remdy the evils that are therein stated to exist?

The Under-Secretary of State for the Colonies had some discussion about this matter with the Governor of the Straits Settlements, and his advisers during his recent visit to Malaya. The Governments concerned are proceeding on the lines recommended by the Committee in question, which recognised that improvement in this as in other matters of social welfare must necessarily be gradual. I understand that the situation already shows some improvement and that it is not considered that any steps other than those recommended by the Committee can usefully be taken at present.

Government Departments

Colonial Office (Overseas Service)

asked the Secretary of State for the Colonies, having regard to the fact that before the Under-Secretary's recent tour there was not a single person in the Colonial Office who had ever seen Malaya, whether he will consider modifying the conditions of service in that Department, so as to give senior officials a term of duty in the actual territory of the Colony with which he is concerned before taking up permanent duties in Whitehall?

Appointments of administrative staff to the Colonial Office have since 1926 been subject to the condition of liability to serve overseas from time to time if required.

Apart from the fact that they are under the liability to serve overseas, do they, in fact, serve overseas?

Is there any reason why the right hon. Gentleman should not, in the public interest, answer the first part of the question—that before the Under-Secretary's recent tour there was not a single person in the Colonial Office who had ever seen Malaya?

Clearing Office for Enemy Debts (Mr. Kramer)

asked the President of the Board of Trade whether he has information of the conditions under which Mr. Kramer acted as agent in claims made to the Enemy Debts Department; and whether the Department satisfied itself as to the standing of this agent?

The reply to the first part of the question is that it is no part of the business of the Department to inquire, and they have no information, as to the conditions under which Mr. Kramer or any other duly accredited! agent undertakes work connected with claims made to the Enemy Debts Department; and to the second part that the Department has been satisfied in each case that Mr. Kramer has been acting with proper authority from the claimants concerned.

Does the hon. Member think it is satisfactory that his Department should not have made inquiries as to the standing of this gentleman, seeing that £800,000 passed through his hands?

I am afraid the hon. Member does not quite appreciate the position. If someone has a claim against the Department and appoints someone else to act for him, provided we are satisfied that the second party has proper authorisation from the first party, it is no business of ours who the second party is.

Is it not the duty of the Department to ascertain whether all the parties are in good standing in these claims, seeing that it is the passing back of property to those who have proved their status, to the extent, in some cases, of over £1,000,000?

May I press the hon. Member to give an answer? Does he not think that there is at least a case for an inquiry to be made into the status of this gentleman, in view of the facts disclosed?

Just as I answer every Member's question without inquiry as to the status of the Member, so equally we deal with every accredited person.

Board of Education (Women)

asked the President of the Board of Education whether his attention has been drawn to the fact that, excluding the inspectorate and those employed on clerical dudes, there are no women in the Board of Education; and whether, in view of the desirability of associating women with this work, he will take steps when future vacancies occur to secure the appointment of women by promotion, transfer, or otherwise to responsible posts under the Board?

In addition to the women inspectors and women executive and clerical officers, the Board of Education staff includes a chief woman medical adviser, two women medical officers, a woman administrative officer and a woman librarian. A woman was among the six candidates recently interviewed for a vacancy in the administrative class which was filled by promotion, and women are equally eligible with men for vacancies filled from the Civil Service competitive examination.

Pensions Office, Glasgow

asked the Minister of Pensions what search was made for new premises for the area office in Glasgow; how many were inspected and if the rents were in any cases lower; and if, in view of the large increase of rent of the new premises, he has taken steps to safeguard the Department against rack-renting?

The UNDER-SECRETARY of STATE for the HOME DEPARTMENT
(Lieut.-Colonel Sir Vivian Henderson)

I have been asked by the Minister of Pensions to reply to this question. The reply to the first part of the question is that an extensive search covering a period of over three months, supplemented by advertisements in the local Press, was conducted to secure new premises for the Ministry of Pensions in Glasgow. Assistance was also obtained from the civic and parochial authorities; in regard to the second part of the question, over 12 buildings were inspected, but in no case were the premises satisfactory as offices for the Ministry of Pensions; the rental fixed for the new premises is considered reasonable by the Valuation Department of the Inland Revenue, and is considerably lower than that originally quoted by the lessors.

Can the Under-Secretary tell us the names of the people from whom this rent has been taken?

Trans-Persian Railway

asked the Secretary of State for the Colonies whether, in view of the fact that the southern section of the recently authorised Trans-Persian Railway will come within a short distance of the Iraq frontier, he will lay before the Persian Government a proposal to build a short connecting line from the nearest point on the railway in question to the port of Basra?

No, Sir. I do not propose to take any action at the present stage. When the Persian Railway has been built, the question of connecting it with the Iraq Railways will doubtless be considered. As the hon. Member is probably aware, the Iraq Railway system already extends to the Persian frontier at Khaniqin.

Is the right hon. Gentleman aware that, if this link were completed, there would then be direct railway communication between Basra and Calais; and is it not very necessary that this short link should be completed?

No, Sir, I am not aware of that fact. There would not be direct railway communication. There is a very long gap between Mosul and the end of the Anatolian railway which has not been bridged, and is not likely to be bridged.

I was thinking of the other route, on the other side of the Caspian. It is true it is roundabout, but, still, would there not be direct railway communication that way?

Could the right hon. Gentleman not do this, in anticipation of coming events?

Kenya (Defence Force Ordinance)

asked the Secretary of State for the Colonies whether, in view of the fact that some 1,500 Europeans in Kenya signed the memorial to the King praying that conscription might not be imposed, he is willing to have an amendment introduced in the Kenya Legislative Council allowing the release from conscription of those who have a conscientious objection to serving in a European force amid a native population?

If I were satisfied that it was the desire of the Legislative Council to amend the Defence Force Ordinance in order to release conscientious objectors from their obligations to enrol, I should not raise any objection, but I do not feel called upon to take any initiative with a view to the introduction of such an amendment.

Are we to understand that the right hon. Gentleman is prepared to have a system in Kenya in time of peace, which public opinion in this country would not tolerate in time of war?

No, Sir. The system is one of universal enrolment and when the question of actual service arises, then it may be possible to make arrangements to enable conscientious objectors to do something which will not involve shedding blood.

I wish to put two questions to the right hon. Gentleman. First, is he aware that we have, officially, as a Government, proposed the abolition of conscription in Europe? Secondly, why is there no oath of allegiance in connection with this enrolment?

The second question is one which I have answered very fully and in detail in debate, and I would refer the hon. and gallant Member to the OFFICIAL REPORT. In regard to the other question, the situation in Kenya is quite different from the situation in Europe.

Crown Colonies (Donoughmore Commission)

asked the Secretary of State for the Colonies whether he will extend the terms of reference of the Donoughmore Commission, so that in the interests of co-ordination they may now extend their inquiries beyond Ceylon to Malaya, Mauritius and Hong Kong?

The circumstances of these territories and their forms of government are so diverse that I do not think that any advantage would result from the inclusion of their problems in one comprehensive inquiry, even if it were possible to impose on the members of the Commission the undertaking of so prolonged a task.

Does the right hon. Gentleman contemplate setting up Committees or taking any special steps in regard to other Crown Colonies?

Australia (British Films)

asked the Secretary of State for Dominion Affairs whether he will state the nature of the representations made by the Common- wealth Government of Australia lately on the subject of British cinematograph films, and what answer was returned?

No representations have been received from His Majesty's Government in the Commonwealth of Australia on the subject of British cinematograph films, and the second part of my Noble Friend's question does not therefore arise.

Empire Settlement (Canada)

asked the Secretary of State for Dominion Affairs if he is aware that Canadian official returns show that considerably more European non-British than British immigrants have entered Canada in the past five years, and that whereas the British proportion of the whole Canadian immigration has fallen from 51 to 33 per cent. in these five years the total non-British proportion has risen from 49 to 67 per cent. of the whole; and whether he will confer with the Canadian authorities and with the British Minister of Labour as to the means whereby the British proportion can be increased by more comprehensive measures than are outlined in the Report of the Canadian Committee of Colonisation?

Yes, Sir. His Majesty's Government in Great Britain have this matter under their consideration as a part of the larger problem of settlement within the Empire. It is clear that it is now under the consideration of His Majesty's Government in Canada, and it is one of the matters which will be specially discussed with the Dominion authorities by Lord Lovat during his forthcoming visit to Ottawa. I am in close touch on this subject with my right hon. Friend the Minister for Labour, whose Department is represented on the Oversea Settlement Committee.

Has the right hon. Gentleman the figures of those emigrants who have returned from Canada not being able to find employment there?

asked the Secretary of State for Dominion Affairs how many women were assisted under the Empire Settlement Act to migrate to Canada in 1927; and what were the respective amounts contributed to this object by the home Government and the Canadian Government?

The total number of women assisted to Canada under the Empire Settlement Act in 1927 was 7,215. The expenditure incurred by His Majesty's Government in respect of the assisted passages of these settlers was £79,939. The cash expenditure by the Canadian Government was approximately £21,000. In addition, the Canadian Government will incur expenditure in respect of the provision of after-care for the settlers for a period of five years.

Does the number of women migrants show an increase as compared with the corresponding figure last year?

asked the Minister of Labour whether he will consider giving assistance from the Insurance Fund to unemployed persons who desire to migrate to the oversea Dominions and are suitable for it, seeing that otherwise larger sums in unemployment benefit may have to be paid out of the fund to such persons for a prolonged period, or whether he can take any other action in the matter?

My right hon. Friend has no power to use the Insurance Fund for such a purpose, and it would require legislation to obtain the powers. But suitable persons desiring to migrate to the Dominions can receive financial assistance under the Empire Settlement Act. This assistance is of various kinds, and I am sending my right hon. Friend particulars.

Anglo-Canadian Relations

asked the Secretary of State for Dominion Affairs if his attention has been called to the statement of the Prime Minister of Ontario as to the way in which American influence and methods were permeating Canadian life; and whether His Majesty's Government in Great Britain will co-operate in his proposal for an Empire conference of men of affairs to review the means of strengthening Anglo-Canadian relations?

As regards the first part of the question, I have seen an allusion to this matter in the Press report of a recent speech of the Premier of Ontario in London. As to the second part, the reference which I noticed was to a proposed Conference of business interests. My hon. Friend will appreciate that this particular proposal is hardly one in which His Majesty's Government in Great Britain could take the initiative, but they are, of course, always glad to co-operate with other Governments in the Empire in schemes for the development of industry and trade. I may refer in this connection to the passage dealing with this matter in the Report of the Oversea Settlement Committee for 1927. I may also mention that in the replies which I gave in the House of Commons on the 26th of March to questions regarding the trade mission to Australia, I indicated that His Majesty's Government in Great Britain would be glad to give sympathetic consideration to an invitation from any other Dominion Government for the despatch of a similar mission.

Agriculture

Beet-Sugar Industry (Subsidy)

asked the Minister of Agriculture the total amounts of subsidy paid for beet-sugar development for each of the following years, 1924, 1925, 1926, 1927, 1928, and 1929, estimated: and whether there has been any refund in any particular case?

As the reply contains a number of figures, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.

Has the right hon. Gentleman's Department yet received any expressions of gratitude from the shareholders of these companies?

Although the first part of the answer may be expected to include figures, I suggest that the second part might be given to the House.

Apart from the small adjustments rendered necessary in a few cases, there has been no refund of subsidy.

Is it the intention of the Government to take any steps to get the subsidy refunded in cases where the profits prove to be larger than anticipated?

Is there any relation between the subsidy and conditions and wages; and has special consideration been given to the small wages paid to the chemists?

We have no thought of modifying the existing arrangement as to subsidy.

Following is the reply—

The total amount of subsidy paid on home-grown beet sugar and molasses in each of the financial years referred to by the hon. Member is as follows:—

asked the Minister of Agriculture the total amount of subsidy received by each of the following beet sugar factories: Kelham, Cantley, Ely and Ipswich, up to the latest available date: and whether it is intended that the subsidy shall be refunded in any case where it is exceeded by the profits made.

I will circulate in the OFFICIAL REPORT the figures desired by the hon. Member in the first part of the question. The answer to the second part is in the negative.

Following are the figures—

The total amount of subsidy paid to 20th July, 1928, in accordance with the Beet Sugar Subsidy Act, on home-grown beet sugar and molasses manufactured at the factories referred to by the hon. Member is as follows:—

Income Tax (Repayments)

asked the Chancellor of the Exchequer whether he can give the estimated income upon which repayment of income tax was made in England and Wales in 1927–28 on account of farm losses or the actual income falling short of the amount assessed, respectively.

It is estimated that the income upon which repayment of Income Tax was made in England and Wales in 1927–28 on account of (a) farm losses, or (b) farming income falling short of the amount assessed, was approximately £2,250,000.

River Gipping (Pollution)

asked the Minister of Agriculture whether, in view of the fact that pollution of the River Gipping through the effluent from the artificial silk works at Stowmarket is causing serious damage to riparian cultivators by infecting the water and thereby poisoning stock, he will without delay cause an investigation to be made into the circumstances?

I have received from time to time complaints of pollution in this river, but investigations carried out last year indicated that illness among pigs was due to swine fever, and that there was no evidence of poisoning of livestock due to pollution. With regard to further investigations, I would ask my hon. Friend to await the reply to the question which he proposes to address to-morrow to my right hon. Friend the Minister of Health.

Is the right hon. Gentleman aware that a 10-miles stretch of beautiful clear river has been turned into a black evil-smelling sewer, and that all the fish for 12 miles below these works have been killed; and can he suggest any action which would obviate such a state of affairs?

I am sure the Ministry of Health appreciate this very unfortunate condition, but as the hon. Member has a question down for tomorrow, I think it would be more conveniently dealt with then.

Registration Officers (Remuneration)

asked the Minister of Health how many persons holding the office of superintendent registrar or registration officer are full-time officials not able, because of the nature and volume of their work, to engage in any other forms of remunerative employment, and the total income from fees such persons receive; and will he give the names of the districts to which these officials are attached?

It is not possible to give the precise information asked for. The obligations of a registration officer are not defined by any requirements as to the number of hours to be devoted to his duties, since in addition to his fixed hours of office attendance, he is required to perform other duties the extent of which is governed by the conditions of his district or sub-district. The classification of registration officers as fulltime or otherwise is thus not one which it has been possible to adopt, but I may say that the proportion of officers who are mainly dependent upon their registration income, which I understand to be the information desired by the hon. Member, is estimated at between 30 per cent. and 40 per cent.

What does the right hon. Gentleman mean by "dependent"? How many of them are unable, because of this work, to undertake other work of a remunerative character?

As the hon. Member knows, the position of these officers is very difficult, because they have to be called upon at various times of the day and sometimes in the evening, but so far as we can ascertain the figure of between 30 and 40 per cent. is one which takes into account the fact that the majority of these men are mainly dependent upon the income from their position.

Could we have the names of the districts where this 30 per cent. are employed, so that we can test this information?

It is difficult, and I would like to give the hon. Gentleman all the information I can, because, as he knows, the registration officers are very anxious about the Bill that is now before the House.

In view of the Bill that is now before the House, would it be possible to give information, if only approximately, as to these numbers and the incomes of these people?

The Bill is not dependent upon these figures, because, as the hon. Member knows, the case has been put very fully before this House and the Committee upstairs. I appreciate that the hon. Gentleman is very anxious, as a good many other hon. Members are, about the position of these men during the next year or two.

Infectious Diseases (Casuals)

asked the Minister of Health how many cases of small-pox or other infectious disease were notified in England and Wales during the 12 months ended 30th June of this year; and in how many cases was the origin or inception of the disease traced directly, and with certainty, to persons classed as casuals or vagrants who had been inmates of casual wards?

I will publish a statement in the OFFICIAL REPORT giving the figures asked for in the first part of the question. No information is available enabling me to answer the second part.

Is there no information with regard to these cases which are supposed to have arisen through contact with men in the casual wards and places of that kind?

I am afraid there is not. We have endeavoured to obtain this information, but it has been impossible to ascertain it.

Is the right hon. Gentleman aware that the figure given me a few weeks ago by his Department was that there were 124 casuals who had had small-pox in the first six months of this year, and is he not aware that many of these people would not have contracted small-pox had the medical inspection been taken in the evening rather than in the morning?

As the hon. Member will see, I am asked in the question on the Paper how many cases were notified as a result of contact with casuals. This is another question to that referred to by the hon. Gentleman.

Following is the statement:

Notifications of Infectious Diseases in the 52 weeks ended 30th June, 1928.

(Provisional figures.)

England and Wales (including port sanitary districts).

Cases among non-civilians are excluded.

Smallpox

13,526

Scarlet fever

93,206

Diphtheria

60,668

Enteric fever

3,667

Pneumonia

60,303

Cholera

Nil.

Plague

Nil.

Puerperal fever

2,238

Puerperal pyrexia

5,366

Cerebro-spinal fever

408

Acute polio-myelitis

749

Acute polio-encephalitis

104

Acute encephalitis lethargica

1,452

Typhus fever

3

Relapsing fever

Nil.

Continued fever

24

Dysentery

673

Ophthalmia neonatorum

5,492

Erysipelas

15,736

The figures for tuberculosis are not given, as so many corrections are received to the weekly figures that the totals are not made up until after the end of the year.

Assistant Overseer, Middlesbrough (Pension)

asked the Minister of Health whether he is aware of the dissatisfaction of the Middlesbrough Corporation in regard to the decision of the Ministry in awarding on appeal a pension of £672 12s. a year to Mr. F. W. Goundry as compensation for the ending of his employment as assistant overseer; what amount of remuneration was taken into account in arriving at this figure; and what is the period of service allowed in this connection?

The reply to the first part of the question is in the affirmative. Mr. Goundry's average net remuneration for his last five years of office was £1,008 18s. 1d., and he had had 40 years' service.

Is the right hon. Gentleman aware that a good deal of dissatisfaction is expressed owing to the fact that the previous much lower remuneration to this man does not seem to have been taken into consideration, and does his right hon. Friend think it is in accordance with his plea for economy that this very high pension should be given in view of the services rendered by this gentleman?

I think there is a good deal of misapprehension if there is any dissatisfaction. This gentleman served for 40 years, and his pension is calculated in the ordinary way, and no special consideration has been shown to him.

Is it not a fact that the permanent remuneration for his permanent position was only £675, and that this extra remuneration is only in relation to a secondary employment for which the fees were really payable to the town clerk?

If the hon. Member will investigate this from the legal point of view, he will find that there is an Act of Parliament which says that this other remuneration must also be taken into account.

Poor Law

Casuals

asked the Minister of Health whether he will instruct his inspectors to visit casual wards in the evening and at night after the casuals have been admitted?

Under the arrangements at present existing, the visits of inspectors to casual wards are not infrequently paid at night, and nearly all inspections are in the nature of surprise visits.

asked the Minister of Health whether he is aware that in some casual wards nightshirts made of hessian sackcloth are issued to casuals; and whether Regulations will be issued by his Department to specify a more suitable quality of material?

My right hon. Friend is only aware of one instance of this practice, and in that case another material has been introduced as a result of the representations of his officers. My right hon. Friend sees no reason for the alteration of the Regulations.

Could not the right hon. Gentleman's Department make it impossible for this terrible treatment to be given to these men; and may I ask further if he has ever himself tried to wear nightshirts made of this sort of material?

When the hon. Gentleman uses the expression "these men," I should be glad if he would send me particulars of them, because I have said that we are only aware of one case of this practice, and, as a matter of fact, in that case another material has now been introduced. I have repeatedly asked for particulars of these cases so that we can have them investigated.

Would it not be cheaper to put these gentlemen into artificial silk pyjamas?

Bread Stations

asked the Minister of Health whether he is aware that in certain areas bread stations are 15 miles from the casual ward and bread tickets are not exchangeable for the mid-day meal after 3 p.m.; and, seeing that this sometimes involves a 15-miles walk in four hours, will he issue instructions that will result either in the earlier release of the men or the later availability of the ticket?

No, Sir. My right hon. Friend is not aware of such cases, but he will be glad to give considera- tion to any information which the hon. Member may have on the subject.

Is the right hon. Gentleman aware that in some cases, particularly in North Yorkshire, the men are not released until 11 in the morning and that they have to be at the nearest bread station by three in the afternoon, thus making them walk 15 miles in four hours, and although some men may be able to do it, when it is a question of old men, they either have to resort to going without or to begging on the way?

No, I am not aware of that. The hon. Member speaks of Yorkshire, but that is a very wide definition, and I now invite him again to send particulars of these cases, so that we may have them investigated.

Would it not be better if, instead of general suggestions of this nature, specific cases were put on the Paper by the hon. Member? Does the hon. Member think it fair to the Minister to make these vague allegations?

Rating (Valuers' Remuneration)

asked the Minister of Health whether, in cases where local authorities employ special valuers under the Rating and Valuation (Apportionment) Act, all or any of the expenses will be paid by the Government?

The cost of the remuneration of any valuers employed by local authorities for the purposes of the Rating and Valuation Act, 1925, and the Bill now before Parliament will be payable out of local rates under the provision of the former enactment.

Do I understand that if the local authorities engage special valuers, which they will be compelled to do, they will have to pay for the advice of these particular gentlemen, and will that not mean that it will be the cause of jumping up the rates in many parts of the country?

No; the local authorities are not compelled to employ these people, but, if they do, they have to pay for them themselves under the provisions of the Bill.

Does that not mean that if they are to have a true valuation and assessment, they will be compelled to get special valuers?

Cuba (Jamaicans)

asked the Secretary of State for Foreign Affairs whether any, and, if so, how many, Jamaicans have been deported from Cuba and for what reason; and what action was taken by His Majesty's representative in Cuba to safeguard the rights of these British subjects?

I have no official information in regard to these alleged deportations, but His Majesty's Chargé d'Affaires at Havana has been instructed by telegram to furnish a full report.

Are these representations likely to have much effect, in view of the fact that the Home Secretary constantly repatriates British West Africans from Liverpool to West Africa?

I did not say that I was making representations. What I said was that I was asking for a report.

League of Nations (Security and Arbitration)

asked the Secretary of State for Foreign Affairs whether he can make any statement regarding the recent session of the League of Nations Committee on Security and Arbitration?

The Committee gave final approval to (1) model arbitration and conciliation conventions, and (2) model treaties of non-aggression and mutual assistance. Each of those two groups of model treaties is accompanied by an introductory note and two resolutions, one submitting and recommending the treaties, and the other relating to the good offices of the Council. The Committee adopted a resolution and report on the Finnish scheme for financial assistance to States' victims of aggression. It also drew up for consideration by Governments a model treaty intended to strengthen the means of preventing war, based on certain suggestions made by the German Government, accompanied by an introductory note and resolution.

In regard to the German proposals for a system of armistice, in view of Lord Cushendun's Amendment to that proposal which appeared to represent a retrogression from the obligations under Article 11 and 12 of the Covenant, can the Foreign Secretary state that no such retrogression was intended?

I not only say that it is not intended, but that there was no such retrogression, which exists only in the mind of the right hon. Gentleman.

Is the right hon. Gentleman aware that, in his last reply to the so-called Kellogg Note, there is a retrogression from Article 12 of the Covenant?

No, Sir, I am not aware of any retrogression from the Covenant. On the contrary, my principal anxiety was to see that we did not retrogress.

Egypt

asked the Secretary of State for Foreign Affairs whether, seeing that the Egyptian Parliament has been dissolved for a term of years, he has any statement to make on the political situation in that country?

asked the Secretary of State for Foreign Affairs whether he will make a statement upon the situation in Egypt arising out of the suspension for three years of parliamentary government?

asked the Secretary of State for Foreign Affairs whether he can make a statement about the political situation in Egypt arising out of the dissolution of the Egyptian Parliament?

I have no statement to make on recent developments in Egypt. The attitude of His Majesty's Government remains the same. They regard the Egyptian Parliament and Constitution primarily as matters for the King of Egypt and the Egyptian people to determine.

Before the edict was issued for the suspension of parliamentary government, was Lord Lloyd's advice either sought or given?

Was the right hon. Gentleman, through Lord Lloyd, informed before the coup d'état in Egypt, and does he really suggest that, where we state an intention of preventing certain legislation in the Egyptian Parliament, it can be dissolved without our consultation and consent?

Yes, Sir. I had some indication as to what was going to happen, and I carefully refrained, and Lord Lloyd carefully refrained, from expressing any opinion or tendering any advice. It has been the consistent policy of His Majesty's Government to refrain, as far as possible, from interference in purely Egyptian affairs, and to safeguard only those interests which we have to maintain, and those obligations which it is our duty to fulfil.

Does not the right hon. Gentleman think that the suspension of the Egyptian Parliament will endanger those interests more than the Public Assemblies Bill which he prevented?

The right hon. Gentleman's opinion on policy in a matter of that kind is not a question to be put at Question Time.

Surely, Mr. Speaker, the opinion of the Secretary of State for Foreign Affairs, as expressing the opinion of the Government in a matter of that kind, is of very great importance?

On a point of Order. May we not ask as directly arising out of this question, in regard to the comparative disorder that might arise between these two matters?

We are asking the opinion of the Foreign Secretary as to whether he does not think that greater danger to foreign subjects will arise on the suspension of the Egyptian Constitution than from the passage of the Public Assemblies Bill.

Telephone Facilities, Chaddesley Corbett

asked the Postmaster-General whether he is now in a position to announce his decision in regard to better telephone facilities at Chaddesley Corbett, Worcestershire?

I regret to find that the volume of business does not warrant the extra cost which would be involved in replacing the present call office at Chaddesley Corbett Post Office by a kiosk in the street.

Does that mean that the proposals, which the Noble Lord previously suggested were under consideration in December, have now been abandoned, and that this village and a large country area is to be left without any facilities whatever?

I do not think that that is a correct representation of the facts. I shall be delighted to go into the matter with the hon. Gentleman. There are two telephones there.

Is not this really an example of the reactionary policy which the Post Office has adopted with regard to the extension of telephones?

There is a telephone in the post office in this village, and another public telephone immediately over the way, and all that I have said is that we are unable to put up a kiosk in the street, because the traffic does not warrant it.

When the Post Office is considering this matter, do they consider not only the revenue likely to come directly from out-calls at offices like that, but also the increased revenue likely to come from in-calls to the new teephone?

Naval Armaments (Home Secretary's Speech)

asked the Prime Minister whether the speech of the Home Secretary, at Evesham on 14th July, on the subject of the reduction of naval armaments in connection with the signing of the pact to end war represents the policy of His Majesty's Government?

I do not detect in my right hon. Friend's speech a statement of policy, but merely the expression of a hope that the signature of the proposed treaty for the renunciation of war as an instrument of national policy may lead to a further reduction of armaments.

Is the right hon. Gentleman aware that the premises on which his right hon. Friend spoke, as to the increase in the American Navy, are quite inaccurate, and will he inquire as to how it was that the right hon. Gentleman was not informed on this very important matter?

I think that the hon. and gallant Gentleman in his question referred to the speech as a whole. He has now mentioned what he considers the peccant paragraph. I have been at pains to read the whole of this speech, and I think that the answer to the question is a very fair one in the circumstances. The passage to which the hon. and gallant Gentleman refers seems to me to be in the form of a rhetorical question.

Is the Prime Minister aware that the actual words referring to the United States as reported in the "Times" next day are:

"and yet we understand you are increasing your Navy";

and is the right hon. Gentleman aware that that is quite inaccurate, and that the American Navy Bill was thrown out by Congress?

I can only say that, had I been speaking on that matter, I might have expressed it somewhat differently, but I hope very much that when the hon. and gallant Gentleman sits here, he will exercise the wisdom of reticence of most of my colleagues in most of their speeches.

Is the Prime Minister aware that this speech, based on misinformation, caused a great deal of trouble in America; and, when a British Cabinet Minister does not know what has been going on in a country like America, and bases his speech on entirely wrong information, is it not about time that the right hon. Gentleman's colleague should be better informed?

No, Sir, I do not agree with that. I think a great deal of the trouble comes from the assiduity with which isolated sentences taken from their context are immediately cabled across on both sides.

Is the Prime Minister aware that the editorial of the "Observer" yesterday was devoted to this question?

May I ask the Foreign Secretary, in view of the effect which the Home Secretary's rhetorical question has had on public opinion in America, whether he has allowed the speech to pass without any complaint or repudiation?

Trade and Commerce

Russia (British Claims)

asked the President of the Board of Trade if he has any official knowledge of a proposal by the company marketing Russian petrol in Great Britain to set aside 5 per cent. of the f.o.b. cost of all oil sold in this country for compensation for the former owners of the wells; and if he has been approached by representatives of this company with a view to an arrangement with the firms or persons having claims in this respect?

asked the President of the Board of Trade whether his attention has been called to the notice of the intention of the Medway Oil Company to set aside, as a compensation fund, 5 per cent. of the cost price of all oil which it purchases in the future from Russia; and whether he has been approached by the company with a view to arranging the basis of compensation to the oil companies registered at his Department having claims against the Soviet Government?

As regards the first part of the questions, I have seen a notice in the newspapers. The reply to the second part is in the negative.

Is the hon. Gentleman aware that the claimants for this money are many and in different parts of the country, and will he take steps officially to see that they are considered and given facilities for getting payment?

Will the hon. Gentleman not inquire into this matter in view of its admitted importance?

Tariffs

asked the President of the Board of Trade if he is aware that a unanimous resolution was passed at the International Shipping Conference, held in London in June last, in favour of reducing the tariff barriers and other obstacles to trade which already exist and to prevent the introduction of new tariffs where none exist to-day; that at the conference 17 principal maritime countries of the world with a gross tonnage of 58,279,000 tons were represented; and if he intends taking any action in furtherance of this policy?

The answer to the first two parts of the question is in the affirmative. The resolution of the International Shipping Conference endorsed the views expressed by the World Economic Conference of 1927. As regards the third part of the question, I would refer the hon. Member to the answer given to the hon. Member for Peckham on the 18th instant by the Secretary of State for Foreign Affairs.

May I ask whether he has had a single example in Europe since the Conference at Geneva in which there has been any proposal for reducing a tariff?

If the Government accept the principle contained in the resolution passed by this shipping conference, what becomes of them framing increased tariffs on various commodities?

Does not the hon. Gentleman see the contradiction between these shipowners entering into rings, conferences, and tariffs to protect themselves and their objecting to other people following the same policy?

Export Credits (Poland)

asked the Chancellor of the Exchequer what are the amounts lost to this country by the guarantee of certain shipments to Poland in 1921 and 1922?

asked the Secretary to the Overseas Trade Department whether he can state the sums paid under the export credits scheme with respect to certain shipments to Poland in 1921 and 1922; and the nature of those shipments and the necessity for the payments?

I presume that the reference is to certain cases mentioned in the Report of the Select Committee on Public Accounts. The necessity for the payments arose from the fact that bills of exchange guaranteed by the Export Credits Department were dishonoured, and the Department was called upon to implement its guarantee in accordance with its contracts with the exporters concerned. I regret that in accordance with pledges given in this House I am unable to disclose particulars of individual transactions.

Can the hon. Gentleman tell us how the Government became involved in this business?

This was under the export credits scheme inaugurated a good many years ago. The purpose of the scheme was to guarantee certain sums, and in some cases where there was a failure the guarantees have had to be met.

At the time the Government were granting all these export credits, was it pointed out that Poland had not a civilised Government?

Can the Parliamentary Secretary state, without disclosing individual cases, the total amount which was lost in that way?

There has not been any loss in Russia, because it does not apply to Russia.

Can the hon. Member tell us the names of the Polish people who defaulted in this matter?

Unemployment

Benefit Disallowed, Leith and Edinburgh

asked the Minister of Labour the number of insured persons who have failed to qualify for unemployment benefit since 19th April, 1928, to the latest available date in Leith (Quality Street) and Edinburgh, respectively?

The number of claims to unemployment benefit at Leith and Edinburgh disallowed by the insurance officers in the period 19th April, 1928, to 9th July, 1928, were 704 and 1,923 respectively. These disallowances are subject to the possibility of subsequent allowance as the result of appeal to a court of referees or the umpire.

Bristol

asked the Minister of Labour whether he is aware that it was reported at the last monthly meeting of the Bristol and District Unemployment Committee that the total number of unemployed men (including wholly and partially unemployed) was 12,635, and that the total of all persons registering as unemployed in the city was 15,777; whether he is aware that the total a year ago was 13,891; and whether, seeing that these official figures confirm the impression that the position in the city is becoming steadily worse, he will consider the possibility of taking special steps to deal with the problem in the Bristol area?

The figures quoted by the hon. Member do not refer only to the City of Bristol, but to an area which includes offices 15 miles away. It is true that unemployment has risen within the Bristol area since last year, but the situation is not such as, in my right hon. Friend's opinion, to require special measures.

Transfer of Workers (Juvenles)

asked the Minister of Labour whether any proposals have been approved for the transfer of juvenile labour from the depressed areas, and bow many young people are concerned?

Arrangements are in operation, through the machinery of the Employment Exchanges and the Juvenile Employment Bureaux, for the encouragement of the transfer of juveniles from the distressed mining areas of South Wales, Durham, Northumberland and Lanarkshire, to approved vacancies in other parts of the country. The work is undertaken with the cooperation of local education authorities in areas in which the local education authority has taken up powers under Section 107 of the Education Act, 1921. Up to 14th July, the total number of boys so dealt with amounted to 729.

Does the hon. Gentleman know the districts to which these juveniles have been transferred?

I could not say at the moment, but I may have an opportunity to-morrow of stating them in debate.

Will the hon. Gentleman also then tell us whether they are considering the transfer of girls from one district to another?

The whole question of transfer can only be dealt with in debate, and I would not care to answer that question now.

Can the hon. Member say whether there have been instances in which girls have been asked to transfer from Liverpool to other places, and have refused?

Royal Air Force (Cranwell Aerodrome)

asked the Secretary of State for Air whether the Air Ministry has had under consideration the proposal to dispense with the works and buildings staff at Cranwell aerodrome, in Lincolnshire; and what decision has been reached?

The question which is under consideration is not that of dispensing entirely with the works and buildings staff at Cranwell, but of putting out to contract certain works maintenance services which have hitherto been carried out by direct labour, and thus of bringing Cranwell into line with the generality of Air Force stations. A definite decision in the matter has not yet been reached.

Will the Minister consider the question of making provision for those men who are dismissed?

I understand that if a change is made all, or anyhow a great many, of the men will have an opportunity of finding employment.

Scotland

Mr. Oscar Slater (Compensation)

asked the Secretary of State for Scotland whether he has given consideration to the verdict of the Court of Session in the Slater case, setting aside the verdict of the former Court; and whether he can state what steps he proposes to take in the way of compensation and otherwise to this man for the 20 years of imprisonment?

asked the Secretary of State for Scotland if he is aware of the decision of the Court of Appeal in Scotland to set aside the verdict of a previous court, which has stood for 20 years, in regard to Mr. Oscar Slater; and if, in view of the long sentence endured, it is his intention to have any compensation granted and to take any other steps to repair the damage done?

I am aware of the decision referred to. I am not at present in a position to make any statement regarding compensation.

When will the Minister be in a position to answer, if I put down another question? Will it be next week?

I think it better that the person concerned should have a reasonable opportunity of putting in a claim.

In calculating any compensation, will account be taken of the money paid to this individual by the gutter Press?

Will the hon. Gentleman give us an assurance that steps will be taken to ascertain who was the real criminal?

Does the right hon. Gentleman seriously say that Oscar Slater will have to make an application specifying the amount that he would like to receive as compensation before the Government will consider the question of compensation?

No, I do not say so, but I thought a reasonable opportunity ought to be given to the individual concerned to make an application, if he desires to do so.

Housing Site, Glasgow (Acquisition)

asked the Secretary of State for Scotland if he is aware that the Glasgow Corporation propose to acquire a piece of land situated near to the Celtic football ground, Parkhead, Glasgow, to be used for slum clearance houses; and, in view of the difficulty the corporation find in acquiring this land, whether his Department can assist them in the matter?

The answer to the first part of the question is in the affirmative. The services of the Valuation Department of the Inland Revenue have already been made available to the Corporation for the purpose of adjusting the terms of acquisition of this site, and I understand that the suggestions of that Department are at present engaging the attention of the Corporation.

Coal Mines (Boys)

asked the Secretary for Mines the number of boys between 14 and 16 years of age employed in the mines in Scotland at the present time; and whether the percentage with respect to adults is tending to show an increase or decrease?

The number of boys between 14 and 16 years of age employed at mines under the Coal Mines Act in Scotland in December, 1927, the latest date for which information is available, was 3,990. The proportion of boys shows a tendency to decrease in recent years; in 1924 it was 5.05 per cent. of the total number of persons employed, and in 1927, 3.62 per cent.

Catterick Camp (Reconstruction)

asked the Secretary of State for War what is the amount already expended in connection with the reconstruction of Catterick camp; and how does this compare with the original estimated expenditure.

The amount expended on the reconstruction of Catterick Camp up to the present is approximately £1,325,000. The first provisional estimate was £890,000. A full statement of the reasons for the increase in that Estimate, has been submitted to the Public Accounts Committee and will, I believe, be printed as an Appendix to their Report.

Can the right hon. Gentleman say whether the expenditure is yet finished, or when he anticipates that it will finish?

The expenditure is not finished. I cannot accurately say what still remains to be done, but, of course, it depends on whether the camp is increased.

Police (Royal Commission)

asked the Secretary of State for the Home Department whether he has given consideration to the recommendation of the Women's Freedom League that two women should be included on the Royal Commission to inquire into police affairs.

All matters relating to the composition of the proposed Commission are still under consideration.

Discharged Prisoners (Aftercare)

"68. To ask the Secretary of State for the Home Department, whether he is aware that it is one of the main scandals in connection with our penal system that no effort is made on the part of the State to find a new life for men who come out of prison; whether this matter is engaging his attention; and what he proposes to do."

I should like to say that I asked whether the right hon. Gentleman's attention has been called to the statement of Judge AtherleyJones to that effect, but that has been omitted from my question?

I am very sorry, but I cannot be expected to know what was in the original question. In reply to the hon. Member's question on the paper: The hon. Member must have been misinformed. The problem of the after-care of discharged prisoners is one to which the closest attention has been given by the Prison Commissioners and the Home Office for many years past. Various organisations have been set up by, or with the approval of, the Government to deal with the various classes of prisoners and considerable sums of public money are devoted annually to this work. The best hope of success lies in enlisting the efforts and the interest of public spirited persons having local influence and knowledge, and for that reason voluntary effort has played and must continue to play a large part in the work of the Aid Societies, one of which is attached to each local prison.

May I now ask the right hon. Gentleman whether his attention has been called to the statement of Judge Atherley-Jones to this effect?

No, Sir. Judge Atherley-Jones is rapidly becoming as loquacious as myself.

Would not the best way of providing for ex-criminals be to have them trained in journalism in gaol, so that they might write for the Sunday Press when they came out?

Games at Fairs

asked the Home Secretary whether he is prepared to extend his instructions to the Metropolitan police respecting whist drives that no action should be taken unless there be evidence of undesirable gambling, to include the playing-games used upon fair grounds?

No, Sir. I cannot go further as regards these games than I indicated in my reply to the hon. Member's question on the 11th June.

Health Insurance Stamps (Prosecutions)

asked the Home Secretary how many employers in the different. parts of the country have been prosecuted for purchasing and using insurance stamps which had been used before?

I have been asked to reply. The total number of prosecutions in England and Wales for the past five years for affixing to contribution cards national health insurance and unemployment insurance stamps which had already been used is 342. It would not be possible to determine what proportion of these prosecutions related to employers without an investigation involving considerable labour.

Will the Government consider the advisability of having some other method of making marks on the stamps which have been used once, so that they cannot be used a second time?

No, Sir. Considering the very large number of stamps used, the number of prosecutions is really very small.

Message from the Lords

That they have agreed to,—

Northern Ireland (Miscellaneous Provisions) Bill, without Amendment.

Slaughter of Animals (Scotland) Bill, with an Amendment.

Stoke-on-Trent Corporation Bill,

Accrington Corporation Bill,

Regent's Canal and Dock Company (Grand Junction Canal Purchase) Bill,

London County Council (Money) Bill,

Regent's Canal and Dock Company (Warwick Canals Purchase) Bill,

Colne Valley Water Bill, with Amendments.

That they have passed a Bill, intituled, "An Act to consolidate the Sale of Food and Drugs Acts." [Food and Drugs (Adulteration) Bill [ Lords. ]

Slaughter of Animals (Scotland) Bill

Lords Amendment to be considered To-morrow, and to be printed. [Bill 184.]

Orders of the Day

Finance Bill

As amended, considered.

NEW CLAUSE.—(Reduction of betting duty.)

On and after the first day of October, nineteen hundred and twenty-eight, the betting duty chargeable under Part II of the Finance Act, 1926, as amended by Section eighteen of the Finance Act, 1927, shall be reduced as follows, that is to say:

Where at the commencement of this Act duty is chargeable at a rate equal to three-and-a-half per centum of the amount paid, or offered, or promised to be paid to, or to the order or for the use of the bookmaker, the rate shall be reduced to two per centum of that amount, and where at the commencement of this Act duty is chargeable at a rate equal to two per centum of that amount the rate shall be reduced to one per centum of that amount.—[ Mr. Churchill. ]

Brought up, and read the First time.

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

The task which I have to perform is one which I know will excite, if not enthusiasm, at any rate approval, because the effect of this proposed new Clause will be a remission of taxation, and a remission of a form of taxation which has drawn upon itself much criticism from the official Opposition. I am proposing to reduce the rate of duty on betting on the course from 2 per cent. to 1 per cent., and the rate on office betting, which is the larger proportion, from 3½ per cent. to 2 per cent. These reductions will take place as from the 1st October, 1928. The first reason which has led us to recommend this course to the House is the desire to mitigate to some extent the temptation to evasion. There is no doubt that evasion to a large extent has been practised in connection with this tax, and those who have not been guilty of evasion have been among those who have suffered most through the diversion of their trade to less reputable quarters I had in any case to face a certain shortage on the estimated revenue from the tax. The yield was estimated by me at £3,250,000, but I do not think I could have expected much more than £2,500,000, judging by the out-turn of the year so far as it has now gone.

There is no doubt that there are many other attractions competing with racing in this country. Many people who used to go to race meetings as one of their principal pleasures have now found in the motor bicycle, the cinema, and other forms of amusement and diversion, important competing attractions. In addition, there is no doubt in my mind that a certain amount of money which used to be devoted to speculation on racing is now used for speculation on the Stock Exchange. At any rate, the revenues of race meetings have shown a diminution, and there has also been this shortage in the yield of the tax. Although these remissions which I am making will have the effect of reducing the yield of the duty this year from £3,250,000 to £2,000,000, nevertheless the actual net reduction of revenue which I have to face will only be some £600,000 or £700,000. I hope that the reduction in the rate of the duty will add to the efficiency of the tax, and that there will be less evasion and a larger proportion of yield. I should have wished to double the charge for bookmakers' certificates, which is now £10, and to raise it to £20, this year, but for the fact that it would involve a re-committal of the Finance Bill and other somewhat laborious Parliamentary transactions, and I shall have to do that next year. I have mentioned it now in order that no complaint may be made that due notice had not been given. The counterpart of the concession which I have announced is a doubling of the charge for the certificate.

In these circumstances, I commend the new Clause to the House. I am sorry, of course, to forgo the revenue, but am anxious, among other things, to give the totalisator a good start, in order that it may not come as an additional burden upon the course bookmakers. It will be they who will be principally affected by the totalisator, and I am anxious not to add to the burden which they are bearing at the present time. I have been a good deal pressed to change the method of collecting the Betting Duty from the present percentage on turnover to a system of graded licence duties. I am quite ready to look into that, but up to the present no such scheme has been pre- sented to me which would provide any practical means of meeting the many difficulties, and, although a great many important bookmakers are in favour of it, there is a strong minority of opposition among the smaller men. However, I have nothing to say as to that at the present time, except that I am studying the matter, and that, if any practical scheme of grading were to be devised, it would supersede in whole or in part the reduced percentage duty as well as the new doubling of the charge for certificates which would otherwise be imposed next year. I do not myself think that I ought to encourage any expectation that the difficulties will be solved, but, at any rate, I will give fair and careful consideration to any such proposals that may be made. No doubt the right hon. Gentleman the Member for Colne Valley (Mr. Snowden) is looking forward to mocking me on my having to make this reduction, but it ought to be regarded as an entirely satisfactory event. If it can be made during the present year, it is not a matter which anybody in any part of the House need deplore—

The rate of duty on the totalisator has not yet been settled. As the law is at present, it would be the same as on course betting, namely, 1 per cent., but this need not necessarily be the final percentage. As soon as the new authority is constituted, we shall begin the examination of the matter in discussion with them, in order to see what is a fair proportion that the State may properly take. Although the Betting Duty has only yielded something more than one-third of the revenue that was originally hoped for from it, nevertheless I say that even that one-third alone has fully justified its existence, and if at the same time the totalisator marks the beginning of an era of cleaner racing and a diminution in those undesirable elements in regard to which this country has enjoyed a special and almost unique pre-eminence—if this better era should date from the introduction of the totalisator, not only will there be a satisfactory result from the point of view of the Exchequer, but we shall have other reasons to rejoice in the decision which was taken two years ago.

4.0 p.m.

I think it would have been more appropriate if the right hon. Gentleman had come down to the House this afternoon dressed in a white sheet. I have never heard the Chancellor of the Exchequer speak with such humility and melancholy as he has done this afternoon. After three years' defence of this duty, he has been compelled this afternoon to admit that it has been a complete failure. It is a matter of indifference to me and my friends who are opposed to the Betting Duty altogether, whether the duty be at the rate of 3½ per cent. or 1 per cent. We are opposed to the tax altogether, but it is a very significant thing—and the Chancellor of the Exchequer has certainly afforded no explanation this afternoon—when the tax has failed to realise more than one-third of the original estimate that he should be proposing this afternoon to reduce the rate of the duty still further. I gather from what he said that at the existing rate the duty would not produce more than £2,500,000, and in a full year I gather that this concession he is proposing now will lessen the yield by about £1,250,000.

£1,250,000 from the original estimate of £3,250,000—not from the reduced estimate.

The Chancellor of the Exchequer is giving away revenue, and if he is compelled by the failure of the duty to make some concession, it is certain that he will have his eye upon other sources from which compensation may be obtained. I gather from what he has said this afternoon that he is proposing some increase in the rate of bookmakers' licences next year. I have not looked into the matter, but I cannot see how by doubling the bookmakers' duty—I think it is £10 at present—he is going to get back more than a quarter of that which he loses by the reduction of the Betting Duty. The Chancellor of the Exchequer said that, however much this tax may have failed from a revenue producing point of view, it has produced blessings in its train, and the chief of these is the institution of a system of nationalised betting. The Chancellor of the Exchequer says that the sum of about £2,000,000 is raised by this form of taxation, and this is the question I want to put to the right hon. Gentleman and those Members of the House who have supported him: Has it really been worth while to impose this duty, which has met with such wide opposition from a very large section, and which has outraged the feelings of a section of the community whose opinion is entitled to respect—has it really been worth while to raise all this discussion and to rouse all this opposition for the sake of £2,000,000 a year? I think there is no Member of the House who would give an affirmative answer to that. It has not been worth while, and I think it is a pity that the Chancellor of the Exchequer gave his support to a Bill for the nationalisation of gambling in the hope that it might, to some extent, retrieve this financial failure.

It would have been far better if, when introducing his Budget this year, he had frankly stated to the House that he introduced this Betting Duty as an experiment, that he expected it would give a fairly considerable amount of revenue, originally estimated at £6,000,000, and that if there had not been a vast amount of evasion it would have realised far more, because the Chancellor, I think, has admitted lately that there has been a considerable evasion of the tax. He stated—and the figures were confirmed by the hon. and learned Member for East Grinstead (Sir H. Cautley)—that the turnover is something like £250,000,000 a year. Suppose we take it at £200,000,000. An average tax of 3 per cent. would have produced £6,000,000 a year, but the Chancellor's original duty was very much higher than that. He has lowered the duty in the hope, I suppose, that there will be less evasion. I do not admit that. People who will evade a duty of 3½ per cent. will evade a duty of 2 per cent., and people who will evade a duty of 2 per cent. will evade a duty of 1 per cent. However, as I have said, I am very little interested in this new duty. We are opposed to it altogether. I always hesitate to venture into the realm of prophecy, but I think I may venture to say that, based on the experience we have had, this fresh attempt of the Chancellor of the Exchequer to rehabilitate the Betting Duty will prove a total failure, as have all his previous efforts.

As one who has taken a great interest in this matter, and who, along with other Members, tabled a new Clause to the Finance Bill which, I am sorry to say, was not called, I should like to congratulate the Chancellor of the Exchequer upon courageously tackling this subject, and not leaving it in the very unsatisfactory state it appears to be at the present moment. Unlike the right hon. Gentleman the Member for Colne Valley (Mr. Snowden), I do not regard this as the Chancellor of the Exchequer coming down in a white sheet. I regard his action as the action of a very courageous Minister who is prepared to meet difficulties as they come along. It is a fact that the real cause of the failure of this duty is that it is a tax on turnover, and a tax on turnover in betting or any other form of business will never be a success in this country. That is my opinion, and I think this has proved it beyond a shadow of doubt, because where you have a tax on turnover, undoubtedly there is a good deal of chance for evasion, and, in any line of business, you will always find a type of person who, if he can evade a tax successfully, without any great fear of being discovered, will evade it.

I hope the Chancellor of the Exchequer will give further consideration to the question of introducing a graduated licence duty to replace this tax on turnover. I know that the bookmakers of this country, or the bulk of them, are prepared to pay their share towards the revenue of the country to provide for the social services and other necessary services. They are quite prepared to do that, and they want to do it in a way that will wipe out this chance of evasion on the part of other members of their profession, because it is very unfair that the men who are paying their proper quota on the amount of bets have to compete with men who are not paying their fair quota, because, as the Chancellor said in dealing with this matter in Committee, it is a question of shortening odds to meet the cost of this tax. The man who is not paying the tax need not shorten the odds, and will get most business. If the system I proposed in my Amendment were adopted, the Exchequer would get a sum of £2,500,000 a year which could be collected without any great expense, and they would be certain to get it, because they would have the money before people commenced their bookmaking. I am hoping therefore that the Chancellor of the Exchequer will give careful consideration to any scheme to deal with this matter.

I know that any scheme which is brought forward will not satisfy all the bookmakers, because the only thing that would satisfy all of them and also, I understand, satisfy the late Chancellor of the Exchequer and many of his colleagues on the Socialist Benches would be to abolish the duty altogether. But I still maintain that the bookmakers are prepared to pay their quota towards the revenue of the country. I think they ought to do so, and if a method can be found whereby this money can be got without all the difficulties we have had over this duty, it is worth while trying, and I do hope that we shall see introduced a graduated licence duty system as against the present system of a tax on turnover. It is a big concession to make on the part of the Chancellor of the Exchequer, and I thank him, at any rate, on behalf of those who are keen upon seeing reform in this matter, and I hope we shall have the graduated licence duties next year.

The right hon. Gentleman, in announcing his concession, has admitted for the second time that there has been considerable evasion of the Betting Duty, and he said this afternoon, I think, that the fall in the yield of the Betting Duty was largely due to the competition of other forms of amusement. I think the right hon. Gentleman is wrong. Those who are competent to express an opinion inform me that there is not the slightest evidence that there has been any diminution whatever in the amount of money which has been gambled upon horseracing as a result of the Betting Duty. Of course, as the right hon. Gentleman knows too well, as the result of this particular form of tax which he imposed, there has been set up in this country a very extensive system of illegal betting for the particular purpose of evading the tax, and I venture to say that the ex-Chancellor of the Exchequer did not quite cover the whole ground when he said that people who would evade a duty of 3½ per cent. would also evade a duty of 2 per cent.

What has really happened is this. At the beginning, when the Chancellor of the Exchequer was consulted by the interested parties—those for whom the hon. Member below me has spoken—he was told that under a tax on turnover he could not possibly get the revenue for which he Budgeted, but they said that they were prepared to make a contribution to the revenue on the basis of a graduated licence duty, to which the hon. Member has referred. The Chancellor of the Exchequer would not accept that advice but, as I said on a previous occasion, we know the right hon. Gentleman's mentality. I have no doubt that when the present Government come to an end, the right hon. Gentleman will write his book of reminiscences, in which he will point out that all his failures were successes. We know that the right hon. Gentleman has failed in this matter. That is not surprising, because the right hon. Gentleman, in the course of his Parliamentary career, has specialised in failure. He failed over the £10,000,000 a year economy; he failed over the abolition of the three Ministries; he failed over the Kerosene Duty; and he has now failed over the Betting Tax. He has done so through ignoring the advice given him. There I think his predecessor is a little wrong. The reason why the right hon. Gentleman's prediction on this occasion will not be verified is not simply because people who are prepared to evade one tax will evade another, but because of the very system the right hon. Gentleman has set up, this vast and complicated machinery of tax evasion. The new machinery of betting has got its clientéle. They have formed the habit of betting with these people who do not pay the tax and they will continue to do so, to the detriment of those people who are genuinely prepared to pay.

That is not all that has happened. The right hon. Gentleman after a certain experience of his tax, realising that he was not getting his revenue and that there was this large amount of evasion, took a step that has never been taken by a Chancellor of the Exchequer before. Having imposed the tax on the subject, having found that one section of those on whom it was imposed were evading it and that he was not able to collect it, he laid it down as a maxim that his officials were to go on collecting it from the people who were prepared to pay but were not to attempt to collect it from those who were not paying. That seems to me to be an entirely new procedure. It, is as though there was a certain amount of smuggling going on in regard to scent or spirits and because the officials found it difficult to detect it, they were instructed to impose duty on those who openly brought the articles in but were to make no attempt whatever to collect it from those who were evading it. In other words, the right hon. Gentleman is putting a premium upon the dishonest action of those who are evading the tax. This tax has been from first to last a failure. Two years ago the right hon. Gentleman said it was essential that the revenue should be safeguarded and the bookmaker protected from dishonest competition. He has not protected the honest bookmaker from dishonest competition, he has introduced as wide a form of tax evasion and illegality as there has been over any tax in recent years, and now he is compelled, because of the complete failure of the tax as he modelled it, to reduce the proportion of tax, and therefore to make a smaller estimate of revenue.

I predict that he will not collect the revenue he is hoping for, for the simple reason that the machinery of evasion has now come into general use. I am sorry to see there is no representative present of the Home Office, because this is a matter that very closely concerns that Department. The Chancellor of the Exchequer has been creating centres of illegality which, as far as I can see, there has not been the slightest attempt by his colleague, or by the representatives of those who ought to be taking this action, to suppress. Gambling is going on here, there and everywhere, to an enormous extent and by an organised system, without a pennyworth of tax being paid, and no attempt is being made to stop it. That has been the result of the right hon. Gentleman's action. Now he tells us that this duty, which began by being a means of producing revenue, has failed as a revenue producer and he wishes us to believe it is a crusade to cleanse the turf, and he produces this excuse to justify his action. We all know what has happened. He has been compelled by pressure within the ranks of his own party, who have been staggered by the result of the tax, to take the action he has taken to-day. The history of this tax from the beginning justifies every word that has been said by those who say it will be far better if the State takes its hands right off this business and leaves the whole matter alone.

I wish to ask the right hon. Gentleman a question. I understand he said he anticipated that, when the totalisator was set up, the rate of duty for bets with a machine would be different from that carried on by the bookmakers. If that is his present intention, I hope he will think the matter over carefully, because I and some other members of the Committee were throughout turning our attention largely to the case of the bookmakers and seeing that they were not unfairly treated in regard to the machine. I hope the result of our labours will not be that the machine is going to be unfairly treated as regards the bookmakers. If in the course of the next few months he will carefully consider the suggestion the hon. Member for Grimsby (Mr. Womersley) has put forward, together with the possibility of collecting the duty more carefully and more easily in the case of the totalisator, I think he will go a very long way towards getting within some distance of the object he has in mind. I hope he will consider carefully, too, the difficulties that would arise from having, on a given racecourse, one duty for the human and another for the machine. I do not recollect, in the many weeks we have spent on the Betting Bill, ever having heard that suggestion made by any Government representative or by the hon. and gallant Gentleman the Member for Abingdon (Major Glyn).

I really rose to ask the same question the hon. and gallant Gentleman has asked, though in a slightly different way. The right hon. Gentleman is putting the House in a very unfair position in not being a little more explicit with regard to the rate of duty on totalisator bets. The Bill is now going through another place, but this is the place in which these matters must be disclosed by the Chancellor of the Exchequer. We were told in so many words that the Chancellor of the Exchequer wanted to raise revenue, and those who opposed the totalisator on ethical grounds, had objected to the State being mixed up with the betting business, were told: "That may be all very fine, but we are going to get money from it." Some friends of mine on these benches actually used that argument. "There is cash in this Bill, and that is why we must force it through," though, of course, they did not vote for it. The hon. Member for West Ham (Mr. W. Thorne) used that argument, and hon. Members on the other side used it also. The right hon. Gentleman cannot really ask us to deal with this matter, having passed the Totalisator Bill since the Budget was introduced, without telling us a little more of his intentions with regard to the percentage on the totalisator. My first question is this. For the purposes of this tax, in law, does the word "bookmaker" cover the pari-mutuel or totalisator? That is, in another form, what the hon. and gallant Gentleman who has just spoken has been inquiring. Then I would ask the right hon. Gentleman whether he could do nothing with regard to bona fide bookmakers who pay for their licence, pay the tax and obey the law? Are they to have no redress against defaulting customers, and is the customer who is swindled by a bookmaker also to have no redress?

We cannot have this thing both ways. I was very much opposed to the repeal of the Act of 1853. I was opposed to the Betting Tax at all from the beginning. But having legalised it, having made it an institution, having made the bookmaker with an office and a stand and a licence an institution, having made him a minor tax collector for the right hon. Gentleman, surely the matter cannot stop there, and, if the bookmaker who is licensed by the right hon. Gentleman swindles a backer, surely the backer should have some remedy at law. I have a case in my own constituency of a working man who backed a double that came off and won £200, but has not been able to collect a penny. The bookmaker has a licence endorsed by the right hon. Gentleman as a passport of his respectability, for which he pays duty, and yet that unfortunate man has no remedy at all. We are in a chaotic state at present. Betting is neither legal nor illegal. The Government has thrown its cloak over it, and yet there is no justice to the man who is swindled in that way.

I am very sorry for the right hon. Gentleman. If he had never left Dundee, he would not have had this bother. If he had remained in the representation of Dundee we should have had no Betting Tax and no totalisator and there would have been none of these complications, difficulties, evasions and illegalities. I do not know what is wrong with Epping, which he represents at present, but I am sure the change of atmosphere has affected his political conscience. I hope this is only an easy way of dropping the whole Betting Tax. If he lives politically to introduce another Budget, I do not think we shall see the Betting Tax in it at all, and a very good thing, too. In the meantime, he must make it clear what is his intention in regard to the totalisator. I hope when the right hon. Gentleman the Member for Colne Valley (Mr. Snowden) is again in office, perhaps next year, the whole connection of the State with betting, either in the form of this tax or of the licensing of bookmakers, or partnership with the pari-mutuel, will be ended and this unfortunate folly and the right hon. Gentleman's will be forgotten and we can in the future perhaps remember some of his more attractive qualities.

I share few, if any, views with the hon. and gallant Gentleman the Member for Central Hull (Lieut.-Commander Kenworthy) or with the right hon. Gentleman the Member for Colne Valley (Mr. Snowden), but if in this case, as seems unlikely, they have the courage of their convictions to divide on this matter, I shall probably go with them. I do not adopt this attitude because I have any objection to a rearrangement of the incidence of the Betting Duty, and I am not in a position to offer a considered judgment upon the question. But here a part reorganisation is proposed, and the part which is to be carried through now is the part which reduces the Government's income, and the part which may possibly be carried out next year will be the compensating part. The Chancellor of the Exchequer, in my judgment, gave us no reason whatever why this part of the scheme should be carried this year. If he had said that it was possible to carry out both parts of the scheme and thereby to effect a satisfactory balance, of course. I should have supported him, and I have no doubt that everybody else would have done so, too. It seems to me that it is totally wrong to bring in one part without the compensation which he somewhat indefinitely promises us for next year. Therefore, unless some reason is offered for carrying this through now—and none

I submit has been offered up to the present—I shall, if the matter is carried to a Division, regretfully have to vote against him.

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

The House divided: Ayes, 199; Noes, 11.

Division No. 312.]

AYES.

[4.33 p.m.

Acland-Troyte, Lieut.-Colonel

Fraser, Captain Ian

Peto, G. (Somerset, Frome)

Agg-Gardner, Rt. Hon. Sir James T.

Ganzonl, Sir John

Pilcher, G.

Albery, Irving James

Gates, Percy

Pilditch, Sir Philip

Alexander, E. E. (Leyton)

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

Price, Major C. W. M.

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

Goff, Sir Park

Ramsden, E.

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Gower, Sir Robert

Reid, Capt. Cunningham (Warrington)

Baldwin, Rt. Hon. Stanley

Graham, Fergus (Cumberland, N.)

Rentoul, G. S.

Balfour, George (Hampstead)

Grant, Sir J. A.

Rhys, Hon. C. A. U.

Balniel, Lord

Greenwood, Rt. Hn. Sir H. (W'th's'w, E)

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Barclay-Harvey, C. M.

Gretton, Colonel Rt. Hon. John

Roberts, Sir Samuel (Hereford)

Barnett, Major Sir Richard

Grotrian, H. Brent

Rodd, Rt. Hon. Sir James Rennell

Beckett, Sir Gervase (Leeds, N.)

Guinness, Rt. Hon. Walter E.

Ropner, Major L.

Bellairs, Commander Cariyon

Gunston, Captain D. W.

Ruggles-Brise, Lieut.-Colonel E. A.

Benn, Sir A. S. (Plymouth, Drake)

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

Russell, Alexander West (Tynemouth)

Bentinck, Lord Henry Cavendish-

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

Salmon, Major I.

Berry, Sir George

Hanbury, C.

Samuel, A. M. (Surrey, Farnham)

Betterton, Henry B.

Hannon, Patrick Joseph Henry

Sandeman, N. Stewart

Birchall, Major J. Dearman

Harland, A.

Sanders, Sir Robert A.

Blundell, F. N.

Harrison, G. J. C.

Sandon, Lord

Boothby, R. J. G.

Harington, Marquess of

Savery, S. S.

Bourne, Captain Robert Croft

Headlam, Lieut.-Colonel C. M.

Sheffield, Sir Berkeley

Brass, Captain W.

Henderson, Lieut.-Col. Sir Vivian

Simms, Dr. John M. (Co. Down)

Bridgeman, Rt. Hon. William Clive

Henn, Sir Sydney H.

Skelton, A. N.

Brooke, Brigadier-General C. R. I.

Hennessy, Major Sir G. R. J.

Smith, Louis W. (Sheffield, Hallam)

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

Hills, Major John Waller

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

Brown, Ernest (Leith)

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

Smith-Carington, Neville W.

Buchan, John

Holbrook, Sir Arthur Richard

Smithers, Waldron

Burton, Colonel H. W.

Hope, Sir Harry (Forfar)

Somerville, A. A. (Windsor)

Butler, Sir Geoffrey

Horne, Rt. Hon. Sir Robert S.

Southby, Commander A. R. J.

Cadogan, Major Hon. Edward

Hudson, Capt. A. U. M. (Hackney, N.)

Spender-Clay, Colonel H.

Cayzer, Sir C. (Chester, City)

Hudson, R. S. (Cumberl'nd, Whiteh'n)

Sprot, Sir Alexander

Cecil, Rt. Hon. Sir Evelyn (Aston)

Hume, Sir G. H.

Stanley, Lieut.-Colonel Rt. Hon. G. F.

Chamberlain, Rt. Hn. Sir J. A. (Birm., W.)

Hurd, Percy A.

Stanley, Lord (Fylde)

Charteris, Brigadier-General J.

Iliffe, Sir Edward M.

Steel, Major Samuel Strang

Churchill, Rt. Hon. Winston Spencer

Inskip, Sir Thomas Walker H.

Storry-Deans, R.

Churchman, Sir Arthur C.

Kennedy, A. R. (Preston)

Strauss, E. A.

Cobb, Sir Cyril

Kindersley, Major G. M.

Sueter, Rear-Admiral Murray Fraser

Cochrane, Commander Hon. A. D.

Kinloch-Cooke, Sir Clement

Templeton, W. P.

Cohen, Major J. Brunel

Knox, Sir Alfred

Thompson, Luke (Sunderland)

Cooper, A. Duff

Lamb, J. Q.

Thomson, Rt. Hon. Sir W. Mitchell-

Couper, J. B.

Lister, Cunliffe, Rt. Hon. Sir Philip

Tinne, J. A.

Courthope, Colonel Sir G. L.

Locker-Lampson, Rt. Hon. Godfrey

Titchfield, Major the Marquess of

Croft, Brigadier-General Sir H.

Long, Major Eric

Tryon, Rt. Hon. George Clement

Crookshank, Cpt. H. (Lindsey, Gainsbro)

Looker, Herbert William

Turton, Sir Edmund Russborough

Cunlifle, Sir Herbert

Lucas-Tooth, Sir Hugh Vere

Wallace, Captain D. E.

Curzon, Captain Viscount

Lumley, L. R.

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

Davidson, Rt. Hon. J. (Hertford)

MacAndrew, Major Charles Glen

Warner, Brigadier-General W. W.

Davies, Maj. Geo. F. (Somerset, Yeovil)

Macdonald, R. (Glasgow, Cathcart)

Warrender, Sir Victor

Davies, Dr. Vernon

McLean, Major A.

Watson, Rt. Hon. W. (Carlisle)

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

Macmillan, Captain H.

Wells, S. R.

Dawson, Sir Philip

Macnaghten, Hon. Sir Malcolm

White, Lieut.-Col. Sir G. Dairymple-

Dean, Arthur Wellesley

Malone, Major P. B.

Williams, A. M. (Cornwall, Northern)

Drewe, C.

Manningham-Buller, Sir Mervyn

Williams, Com. C. (Devon, Torquay)

Eden, Captain Anthony

Margesson, Captain D.

Williams, Herbert G. (Reading)

Edmondson, Major A. J.

Marriott, Sir J. A. R.

Wilson, R. R. (Stafford, Lichfield)

Elliot, Major Walter E.

Merriman, Sir F. Boyd

Windsor-Clive, Lieut.-Colonel George

Ellis, R. G.

Milne. J. S. Wardlaw

Winterton, Rt. Hon. Earl

Erskine, Lord (Somerset, Weston-s.-M.)

Mitchell, W. Foot (Saffron Walden)

Wolmer, Viscount

Erskine, James Malcolm Monteith

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

Womersley, W. J.

Evans, Captain A. (Cardiff, South)

Moore, Lieut.-Colonel T. C. R. (Ayr)

Wood, Rt. Hon. Sir Kingsley

Everard, W. Lindsay

Morrison, H. (Wilts, Salisbury)

Woodcock, Colonel H. C.

Fairfax, Captain J. G.

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

Worthington-Evans, Rt. Hon. Sir L.

Falle, Sir Bertram G.

Nicholson, Col. Rt. Hn. W. G. (Ptrsf'ld.)

Yerburgh, Major Robert D. T.

Fanshawe, Captain G. D.

Nield, Rt. Hon. Sir Herbert

Fermoy, Lord

Nuttall, Ellis

TELLERS FOR THE AYES.—

Fielden, E. B.

Oakley, T.

Forestier-Walker, Sir L.

Penny, Frederick George

Major Sir William Cope and Captain Bowyer.

Forrest. W.

Peto, Sir Basil E. (Devon, Barnstaple)

NOES.

Colfox, Major Wm. Phillips

Harris, Percy A.

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

Cowan, D. M. (Scottish Universities)

Jones, Henry Haydn (Merioneth)

Crawfurd, H. E.

Salter, Dr. Alfred

TELLERS FOR THE NOES.—

Garro-Jones, Captain G. M.

Simon, Rt. Hon. Sir John

Mr. Runciman and Mr. Tomlinson.

Griffith, F. Kingsley

Sinclair, Major Sir A. (Caithness)

Clause added to the Bill.

NEW CLAUSE.—(Amendment of Section 55 of 17 and 18 Geo. V., c. 10.)

Sub-section (1) of Section fifty-five of the Finance Act, 1927 (which relates to relief from capital and transfer stamp duty in the case of reconstructions or amalgamations of companies), shall be amended as follows:

(1) The following shall be substituted for paragraph ( a ) (ii):

(ii) the amount to be credited as paid up on the shares to be issued as such consideration as aforesaid and on the shares, if any, to be issued to creditors of the existing company in consideration of the release of debts (whether secured or unsecured) due or accruing due to them from the existing company or of the assignment of such debts to the transferee company.

(2) In paragraph ( b ) there shall be in-inserted after the words "transfer of the undertaking or shares" the words "or on any instrument made for the purposes of or in connection with the assignment to the transferee company of any debts, secured or unsecured, of the existing company."

(3) At the end there shall be inserted the following proviso:

";and

( c ) the foregoing provision with respect to release and assignment of debts of the existing company shall not, except in the case of debts, due to banks or to trade creditors, apply to debts which were incurred less than two years before the proper time for making a claim for exemption under this Section."—[ Mr. A. M. Samuel. ]

Brought up, and read the First time.

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

This Clause is moved for the purpose of meeting the wishes of the American section of the cotton-spinning industry in Lancashire. If hon. Members will look at the Clause they will see the following words: Then it goes on to say how the Section shall be amended. That Section, which is the outcome of the recommendation of the Company Law Amendment Committee, provides relief from Capital Duty and Conveyance Duty in the case of certain amalgamations and reconstructions of companies—and I want to draw attention to these words—where there is a special identity between the shareholders of the old companies, and the shareholders of the new company, and the relief only applies to the extent to which there is such identity. In the case of the contemplated amalgamations of cotton companies in Lancashire, this identity is to a large extent lacking, for the reason that the bulk of the shares in the new company will go, not to shareholders of the old companies, but to their creditors. Some of the cotton companies in Lancashire are in the hands of creditors, and attempts are being made to persuade the creditors to surrender their rights in exchange for shares in a new company. Under the Section which I have just quoted, the amount of relief to be given would be extremely small. Therefore, we are seeking to meet the wishes of the American section of the cotton-spinning industry, and we have moved this Clause, which extends the relief to the circumstances obtaining in that industry. It is a Clause, as hon. Members opposite will see at once, for the purpose of assisting the rehabilitation, as far as we can assist rehabilitation, of the cotton industry, and I am sure that it will have their support.

It applies to any company where the conditions are the same as those which are laid down in the definition of the reliefs contained in the new Clause which I have proposed.

I do not rise to oppose this Clause, which has for its object the removal of obstacles, but really to ask the Financial Secretary to the Treasury what loss to revenue—which I imagine must be slight—is involved.

I am not able to say what the loss will be, but let me put it this way. Imagine that there might be, and probably would be, a number of cotton companies that would fail. Imagine the ruin and the misery that would result, and imagine the loss of revenue. I cannot say what we shall lose by affording this little relief, but we hope to save the misery, and perhaps indirect loss of revenue, that would be caused by the ruin of these companies.

All hon. Members will agree with the wise consideration which the Financial Secretary has just advanced, but in all these cases it has been the practice of the Treasury and the Board of Inland Revenue to estimate as near as may be for the purpose of information the exact loss of revenue that may result, and I am rather surprised that the Financial Secretary cannot give the House that information.

Is it not a reasonable thing to say that this would not really be a loss, because there would not be the amalgamations? These amalgamations could not be brought about so long as these heavy burdens are imposed upon amalgamations.

That is the answer. If these heavy burdens were not removed there would be no amalgamations; therefore it would not be a question of loss in the ordinary sense, because there would be no opportunity of collecting revenue. If we take away these burdens we set up a more favourable condition of affairs. The right hon. Member for Central Edinburgh (Mr. W. Graham) must see that it would be mere guesswork to give any estimate in this case.

Question put, and agreed to.

Clause added to the Bill.

NEW CLAUSE.—(Amendment of 15 and 16 Geo. V., C. 36, s.,15.)

Sub-section (1) of Section fifteen of the Finance Act, 1925 (which makes allowances in respect of earned incomes), shall have effect as if for the words "one-sixth" there were substituted the words "one-fifth."[ Mr. Lees-Smith. ]

Brought up, and read the First time.

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

The object of the Clause is to draw attention to the treatment at present meted out in regard to Income Tax with respect to earned income as distinct from unearned income. Earned income receives a rebate of one-sixth as against unearned income, which comes from securities and investments in other forms of property. We propose in this new Clause to increase the rebate on earned income to one-fifth, in order to call attention to our view that the proportion of the total Income Tax burden that is borne by earned income as against unearned income is unfair. I can perhaps make our view clearest by giving an example. If a Member of this House, or any man, were offered a post with a salary of £1,200 a year, or a guaranteed income from, say, War Loan of £600 a year, I think the majority would prefer £600 a year safe from War Loan than have to earn a salary of £1,200 a year. The reasons for this argument are that the man who depends upon earnings is in a precarious position. If he dies or retires or loses his job, the income comes to an end. Moreover, it is not as large an income as it seems on paper, because part of it has to be set aside for savings or insurance.

An income depending upon earnings is an income which is dogged by uncertainty and anxiety. Not only the manual worker but tens of thousands of men earning income liable to Income Tax are troubled and worried by what would happen if they died and those dependent upon them had to face the world without them. That is the position of the man who depends upon earnings. Unearned income, although it may be smaller, is saved from many of these changes and chances of life. Unearned income continues if a man dies or falls ill. The income flows in all the time. In such a case, the man does not need to save; he is not bound to insure and he can follow his inclinations and tastes as he thinks fit. If you take two men in the same position with the same amount of income, one depending on earnings, which may disappear, and the other depending on income from securities, on which he can rely; the one man is in twice as good a, position as the other, and a differentiation of only one-sixth in favour of the man dependent upon earned income is an altogether inadequate measure, having regard to the relative economic position of the two men.

This Amendment can be justified not only on the ground of fairness but on the ground that it would place the Income Tax on a more scientific basis and a basis which would be economically better for industry. I recollect that when the Colwyn Committee was sitting the present Financial Secretary to the Treasury gave evidence before us. His evidence could be summarised by saying that he argued that a high rate of Income Tax was a fetter upon enterprise and industry and that if we reduced the Income Tax we set free those two qualities to do their work for the trade of the country. That argument applies to income derived from unearned sources with far less strength than to income depending upon earnings. You do not stimulate the enterprise of the community by lowering the Income Tax on those whose incomes come from debentures or preference shares or interest on War Loan. The effect is not the same as on earned income. For that reason, we argue that if the Income Tax were so readjusted that a larger proportion came from unearned income, with a corresponding reduction of the portion which comes from earned income, that would not only give greater equity but a tax scientifically better and economically wider.

This view has been overwhelmingly strengthened by what has been happening in the last few years in the fall of prices upon those who depend upon earned and unearned income. Prices are now about one-half of the level at which they stood in 1920. Last year or the year before the Chancellor of the Exchequer argued that as prices had fallen by one-half the purchasing power of wages had doubled and, therefore, the wages of the workers were worth twice as much as they were in 1920. He did not tell us that, on the other hand, the workers have suffered since that time a fall in money wages of nearly £600,000,000 a year, and that that has counteracted the reduction in prices. The class of people who are receiving unearned income have had the full advantage of that fall in prices and have not had to bear the reduction in income which the workers have had to endure. The man who has had his money in 5 per cent. War Loan has received his 5 per cent. and will continue to receive it until the loan is paid off. The position now is that the section of the community who live upon unearned income have received an enormous advantage in the last two years and there is no section who can be so justly called upon at this time to pay a larger contribution or bear a larger proportion of general taxation than the particular section whose income has been doubled and whose share in the national wellbeing has been doubled without lifting a finger of their own, simply as a result of the fall in prices in the last eight years. It is one step towards securing a fairer readjustment, that I move the proposed new Clause.

I beg to second the Motion.

I should imagine that the Financial Secretary would be inclined, on principle, to accept the new Clause. I do not mean that he will accept it, because the Budget having been made and no money having been provided for this purpose he naturally would have to refuse to accept it. It is, however, a legitimate proposal which the Financial Secretary, especially in a Conservative Government, might have been expected, on principle, to accept. It is a recognised fact that amongst a large number of what are termed the middle class there is a considerable section of people, especially professional men, like lawyers, doctors and men in business posts in the City who have come from middle class families whose fathers have been able to give them a good education, which has fitted them for the position they are occupying to-day, but, as in the case of a doctor, the family has been able to give them only a little capital. The point which my hon. Friend wishes to bring before the Government is that when you get a man in private practice who is making, possibly, a thousand a year and has hardly any capital, there should be a larger allowance in regard to taxation for anyone in that position than for a man who is drawing his income from wealth which he may have inherited.

5.0 p.m.

This section of people is very much larger than is often estimated. One of the most serious things in their life, especially when they have a wife and children, is that their income is entirely dependent on their health and in some cases on the caprice of other people. They are anxious to accumulate money in order to make provision for the future. It is strange that this matter should be ventilated from these benches because, to a, large extent, the men for whom we are pleading are supporters of the hon. Member and his Government, and it might have been thought that it would have been introduced by hon. Members opposite. It is recognised by everyone that one of the evils of our present system is the fact that wealth is so distributed that we have enormous wealth at one end of the scale and poverty at the other, and what we want to do is not to aim at readjusting incomes, but to remove the vast wealth which passes from father to son sometimes to people who are quite unsuitable for the control of that wealth. This new Clause is part of our larger programme of the distribution of wealth, and when the Financial Secretary refuses the Amendment I hope he will say that it conforms to the principles of the party opposite and that at some future time we may hope, if the present Government survives another General Election, that he will make this very fair remittance and assistance to a class of people who have never wavered in their loyalty to him and his party.

The hon. Member opposite has asked me to make some concession to the principle involved in this Amendment. I do so quite heartily. Let me quote a passage from a speech of the Chancellor of the Exchequer during the Committee stage of the Finance Bill in 1926, on a similar proposal, that this allowance to earned incomes should be increased from one-sixth to one-fifth. My right hon. Friend said:

"I would like to see a change from one-sixth to one-fifth. I should like to see it very much indeed, if it were in my power to grant it, but it is not in my power to do so. We cannot consent to such a reduction of revenue this year."—[OFFICIAL REPORT, 16th June, 1926; col. 2416, Vol. 196.]

That is the position now. I am not going to follow the hon. Member for Keighley (Mr. Lees-Smith) in the hypo- thetical analogies, some of which were false, with which he adorned his speech. He said that there were numbers of people who would prefer an unearned income of £600 a year to an earned income of £1,200. With my individualistic ambitions, and being a normal man and in good health, I would much rather go into the romance and struggle of life and earn £1,200 a year myself than take £600 less, which is what, apparently, Socialist Members opposite would prefer, without any competition or any striving. I would much rather go out into the world and try to earn more myself. Why sit down with £600 a year? That is a realm of discussion into which, however, I do not want to embark. It opens up a long vista of the different temperaments which exist in human beings. I myself much prefer the romance of earned income. If this Amendment was carried, it would cost the Treasury £2,700,000 in a full year, and although we would like to see this reduction we have not the money. I would remind the House that there has been a great increase in the relief given to earned incomes. In 1925 we increased the relief from one-tenth to one-sixth, and that concession gave the taxpayers who have earned incomes £7,500,000 a year. We would carry it further if we had the money. In 1924, when the right hon. Gentleman the Member for Colne Valley (Mr. Snowden) was Chancellor of the Exchequer, an Amendment was moved to the Finance Bill by Mr. Comyns Carr, who was then a Liberal Member of this House, to increase the maximum relief on earned incomes. Did the right hon. Gentleman accept that Amendment?

The right hon. Gentleman cannot ride off like that. He did not accept that Amendment. There was a proposal to increase the allowance, moved by a Liberal Member at that time, and the right hon. Gentleman walked into the Lobby against it. Now he comes along and proposes a relief which he himself declined to accept in 1924. For these very logical reasons, I must ask the House to reject the proposal.

I am really amazed at the arguments of the Financial Secretary, especially when he says that he would rather go out into the world and earn income than live on unearned income. If that was the policy of the whole of his party we should have a far better distribution of the wealth of the country than we have to-day. If you take the production of the wealth of the country and the services rendered, it is estimated that the national pool amounts to £4,000,000,000. Two-thirds of that is taken away by way of rents, profits and interest, by those who draw unearned incomes, and the other third is distributed amongst those who really produce the national wealth. Let me give some figures to show how these people accumulate their wealth, enjoy it while they are alive, and then give it to those who come after them. If the Financial Secretary wants to find money, he can get it from those whose unearned income is increasing year by year, or from the Death Duties.

This is getting rather a wide Debate. I do not see how this has any bearing on the question as to whether earned income should be relieved in a larger proportion than it is at present.

The point I want to put is that if the Financial Secretary will look at the year 1926-27, the year of the coal stoppage and the lock-out of the miners, he will find that the income of Super-tax payers, notwithstanding the fact that industry was paralysed, increased by £10,000,000.

Oh, no. If you take the figures of estates which were left in that year you will find—

This may be relevant to a Third Reading Debate, but I do not see that it is relevant to the case of the relief of earned incomes.

I am sorry you will not allow me to reply to the Financial Secretary. He said that the right hon. Member for Colne Valley (Mr. Snowden) refused this relief in 1924, and you did not call him to order. My hon. Friend below me said that lawyers and small shopkeepers and teachers were carrying heavy burdens to-day. I want to develop that argument and apply it to some of the industries of the country. You will find that the cost of living is 60 per cent. above what it was in 1914. These people are getting no relief at all. They work under a sliding scale, which does not function because it does not cover the cost of the selling price of the material that is sold and, therefore, a very large number of people in industry outside the lower middle classes and professional classes ought really to get some relief. If this was given you would increase the purchasing power of the people and it would act as a stimulus to employment in the depressed industries of the country. We have not the numbers to defeat the Financial Secretary, but I hope that by this time next year we shall be sitting on the benches opposite.

I am rather surprised at some of the remarks which I have heard this afternoon. I wonder sometimes whether some of my hon. Friends who have become Labour Members have forgotten all their old principles. I do not believe in the theory which says that because a man has a certain income that it is necessarily unearned. If a man has worked for it, if he has been thrifty and has saved a certain sum of money, which he has invested in order to provide for his old age, he has earned it; and hon. Members above the Gangway say that he should be mulcted in heavier taxation because he has show} a desire to be thrifty. The whole thing is most ridiculous. Apparently, there is only one man who pays towards the upkeep of the State, and that is the working man.

I do not want to do that, but I should like to draw attention to the fact that the taxation will have to be met by certain members in the community. I cannot think that hon. Members who support this new Clause can really have given serious consideration to it. They are always talking about their desire to encourage thrift so as to help the working classes. I suppose that the man who works with his brain cannot be considered a working man? All people who work, whether with hands or brains—

In the new Clause that we are discussing there is no distinction between manual workers and others. The only question is whether the allowance shall be one-sixth or one-fifth.

Then I shall not press the point, though it was debated at some length by others.

On a point of Order. May I point out that it is rather a difficult thing to deal with an Amendment which proposes a different incidence of taxation without discussing its character?

It may be, but it is not a difficulty that is insuperable. A former Speaker laid it down that the first slip off the line ought to be stopped. Unfortunately I did not do that. I do not think that that particular subject can be debated any further on this new Clause; otherwise the whole question of the incidence of taxation will be open to discussion.

I am sorry if I slipped over the border-line. As between earned and unearned income, I suggest that the man who has earned his income, who has saved his money and has shown a desire to be thrifty, should not be put in a less favourable position in relation to the State.

We are really discussing the question of incomes earned and unearned, and the point raised by the last speaker does call for a little comment. When he speaks about a person who has earned a certain amount of money by his work, mental or manual, and who is to be mulcted because he has exercised thrift, the hon. Member misses the point. The person who has saved money is perfectly entitled to use the money in his old age or in any way that he pleases. If I have two apples to-day and I refrain from eating one of them till to-morrow, my reward for my abstinence and thrift will be the pleasure of eating the apple to-morrow instead of to-day. But with regard to unearned income, the expectation is not merely of eating the apple, but also a proportion of someone else's apple, because one has been thrifty. There is a vital difference between incomes directly derived from work of a mental or manual character or both, and living upon incomes derived from rent, profit or interest, which may or may not have been the result of thrift in early life. Because of that difference we think that there should be an advantage given in the incidence of taxation, and that those who are engaged in actually earning the money are the people who ought to be considered first, and that those who live upon the results of other people's labour, even though it may be because of their thrift, ought to come second. They are living on the wealth produced from day to day by other people, whilst the person engaged in production is earning his income daily, whatever he may do with it afterwards.

The newspapers recently gave the case of a lady who, at the age of 20, was left £2,000,000. She lost her mental balance two or three months afterwards, and at the end of 20 years she had another £2,000,000 added to what she already possessed. During that time she had not done anything by hand or brain to add to her wealth. We do not want to hamper anyone in earning by direct labour or service. We do object to those who, whether it be by thrift or other means, take something more from the poor. Every increase in investment, whether from savings or otherwise, means that something more has to come out of what is being produced. It is necessary either to increase the price of food or to reduce wages. The right of an individual to do what he likes with what he earns is his own, but no man has a right to use his income under the present system in order to make someone else's income less.

I know that the hon. Member for Dulwich (Sir F. Hall) is dull. That is not a play on the name of his constituency. He is one of the dullest Members of the House, as I found when I sat with him in Committee.

I did not quite catch the last sentence, but I doubt if it has any relevance to the Amendment before the House.

The interjection of the hon. Member for Dulwich could only come from such a state of mind. If we take the returns to-day in any British industry, what do we find? Just as investment increases, the greater becomes the demand upon labour in order to get something more from it. We are told that the capital is not receiving its proper return. Take the instance of artificial silk. There were no savings in that industry, but by a system of swindling £12,000,000 was added to the so-called capital investment of the industry.

That cannot be relevant to the question of one-sixth or one-fifth, which is the subject of the New Clause.

The £12,000,000 must have come from savings or somewhere else, or perhaps they do not exist at all. They are now credited in the books as demanding a dividend.

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

The House divided: Ayes, 114; Noes, 240.

Division No. 313.]

AYES.

[5.27 p.m.

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

Harney, E. A.

Runciman, Rt. Hon. Walter

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

Harris, Percy A.

Salter, Dr. Alfred

Ammon, Charles George

Hartshorn, Rt. Hon. Vernon

Scurr, John

Attlee, Clement Richard

Henderson, Right Hon. A. (Burnley)

Sexton, James

Baker, J. (Wolverhampton, Bilston)

Henderson, T. (Glasgow)

Shaw, Rt. Hon. Thomas (Preston)

Baker, Walter

Hirst, G. H.

Shepherd, Arthur Lewis

Barnes, A.

Hirst, W. (Bradford, South)

Shiels, Dr. Drummond

Batey, Joseph

Hore-Belisha, Leslie

Simon, Rt. Hon. Sir John

Bondfield, Margaret

Hudson, J. H. (Huddersfield)

Sinclair, Major Sir A. (Caithness)

Broad, F. A.

John. William (Rhondda, West)

Sitch, Charles H.

Bromley, J.

Jones, Henry Haydn (Merioneth)

Smith, Ben (Bermondsey, Rotherhithe)

Brown, Ernest (Leith)

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

Smith, H. B. Lees (Keighley)

Charleton, H. C.

Jones, Morgan (Caerphilly)

Snell, Harry

Cluse, W. S.

Kelly, W. T.

Snowden, Rt. Hon. Philip

Cove, W. G.

Kennedy, T.

Stamford, T. W.

Cowan, D. M. (Scottish

Universities)

Lansbury, George

Crawfurd, H. E.

Lawrence, Susan

Stewart, J. (St. Rollox)

Dalton, Hugh

Lawson, John James

Strauss, E. A.

Davies, Ellis (Denbigh, Denbigh)

Livingstone, A. M.

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

Davies, Rhys John (Westhoughton)

Longbottom, A. W.

Thomas, Sir Robert John (Anglesey)

Dennison, R.

Lowth, T.

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

Duncan, C.

Lunn, William

Thorne, W. (West Ham, Plaistow)

Dunnico, H.

MacDonald, Rt. Hon. J. R. (Aberavon)

Thurtle, Ernest

Evans, Capt. Ernest (Welsh Univer.)

Mackinder, W.

Tinker, John Joseph

Gardner, J. P.

MacLaren, Andrew

Tomlinson, R. P.

Garro-Jones, Captain G. M.

March, S.

Trevelyan, Rt. Hon. C. P.

Gillett, George M.

Maxton, James

Varley, Frank B.

Gosling, Harry

Montague, Frederick

Viant, S. P.

Graham, Rt. Hon. Wm. (Edin., Cent.)

Morris. R. H.

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

Greenall, T.

Morrison, R. C. (Tottenham N.)

Wedgwood, Rt. Hon. Josiah

Greenwood, A. (Nelson and Colne)

Naylor, T. E.

Wellock, Wilfred

Crenfell, D. R. (Glamorgan)

Pethick-Lawrence, F. W.

Whiteley, W.

Griffith, F. Kingsley

Potts, John S.

Williams, Dr. J. H. (Lianelly)

Griffiths, T. (Monmouth, Pontypool)

Purcell, A. A.

Wilson, C. H. (Sheffield, Attercliffe)

Groves, T.

Richardson, R. (Houghton-le-Spring)

Windsor, Walter

Grundy, T. W.

Riley, Ben

Wright, W.

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

Roberts, Rt. Hon. F. O.(W. Bromwich)

Hall, G. H. (Merthyr Tydvil)

Ruggles-Brise, Lieut.-Colonel E. A.

TELLERS FOR THE AYES.—

Hardie, George D.

Runciman, Hilda (Cornwall, St. Ives)

Mr. Charles Edwards and Mr. Hayes.

NOES.

Acland-Troyte, Lieut.-Colonel

Berry, Sir George

Campbell, E. T.

Agg-Gardner, Rt. Hon. Sir James T.

Betterton, Henry B.

Cassels, J. D.

Albery, Irving James

Birchall, Major J. Dearman

Cautley, Sir Henry S.

Alexander, E. E. (Leyton)

Blundell, F. N.

Cayzer, Sir C. (Chester, City)

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

Boothby, R. J. G.

Cayzer, Maj. Sir Herbt. R. (Prtsmth.S.)

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Bourne, Captain Robert Croft

Cecil, Rt. Hon. Sir Evelyn (Aston)

Atholl, Duchess of

Bowyer, Captain G. E. W.

Chadwick, Sir Robert Burton

Baldwin, Rt. Hon. Stanley

Brass, Captain W.

Chamberlain, Rt. Hn.SirJ.A.(Birm., W.)

Balfour, George (Hampstead)

Bridgeman, Rt. Hon. William Clive

Chamberlain, Rt. Hon. N. (Ladywood)

Balnlel, Lord

Brooke, Brigadier-General C. R. I.

Chapman, Sir S.

Barclay-Harvey, C. M.

Broun-Lindsay, Major H.

Charteris, Brigadier-General J.

Barnett, Major Sir Richard

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

Christie, J. A

Beckett, Sir Gervase (Leeds, N.)

Buchan, John

Churchill, Rt. Hon. Winston Spencer

Bellairs, Commander Carlyon

Buckingham, Sir H.

Churchman, Sir Arthur C.

Benn, Sir A. S. (Plymouth, Drake)

Burman, J. B.

Cobb, Sir Cyril

Bennett, A. J.

Butler, Sir Geoffrey

Cochrane, Commander Hon. A. D.

Bentinck, Lord Henry Cavendish

Cadogan, Major Hon. Edward

Cohen, Major J. Brunel

Colfax, Major Wm. Phillips

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

Reid, Capt. Cunningham (Warrington)

Cooper, A. Duff

Holbrook, Sir Arthur Richard

Rentoul, G. S.

Cope, Major Sir William

Hope, Sir Harry (Forfar)

Rhys, Hon. C. A. U.

Couper, J. B.

Hopkins, J. W. W.

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Craig, Sir Ernest (Chester, Crewe)

Hopkinson, A. (Lancaster, Mossley)

Roberts, E. H. G. (Flint)

Croft, Brigadier-General Sir H.

Horne, Rt. Hon. Sir Robert S.

Roberts, Sir Samuel (Hereford)

Crooke, J. Smedley (Deritend)

Hudson, Capt. A. U. M.(Hackney, N.)

Rodd, Rt. Hon. Sir James Rennell

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

Hudson, R. S. (Cumberl'nd, Whiteh'n)

Ropner, Major L.

Crookshank, Cpt. H. (Lindsey, Gainsbro)

Hume, Sir G. H.

Russell, Alexander West (Tynemouth)

Curzon, Captain Viscount

Hume-Williams, Sir W. Ellis

Rye, F. G.

Davidson, Rt. Hon. J. (Hertford)

Hurd, Percy A

Salmon, Major I.

Davies, Maj. Geo. F. (Somerset, Yeovil)

Hurst, Gerald B.

Samuel, A. M. (Surrey, Farnham)

Davies, Dr. Vernon

Inskip, Sir Thomas Walker H.

Sandeman, N. Stewart

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

Iveagh, Countess of

Sanders, Sir Robert A.

Dawson, Sir Philip

Jackson, Sir H. (Wandsworth, Cen'l)

Sandon, Lord

Dean, Arthur Wellesley

James, Lieut.-Colonel Hon. Cuthbert

Savery, S. S.

Dixey, A. C.

Jephcott, A. R.

Sheffield, Sir Berkeley

Drewe, C.

Joynson-Hicks, Rt. Hon. Sir William

Simms, Dr. John M. (Co. Down)

Eden, Captain Anthony

Kennedy, A. R. (Preston)

Skelton, A. N.

Edmondson, Major A. J.

Kindersley, Major G. M.

Smith, Louis W. (Sheffield, Hallam)

Elliot, Major Walter E.

King, Commodore Henry Douglas

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

Ellis, R. G.

Kinloch-Cooke, Sir Clement

Smith-Carington, Neville W.

Erskine, Lord (Somerset, Weston-s.-M.)

Knox, Sir Alfred

Smithers, Waldron

Erskine, James Malcolm Monteith

Lamb, J. Q.

Somerville, A. A. (Windsor)

Evans, Captain A. (Cardiff, South)

Lister, Cunliffe, Rt. Hon. Sir Philip

Southby, Commander A. R. J.

Everard, W. Lindsay

Locker-Lampson, Rt. Hon. Godfrey

Spender-Clay, Colonel H.

Fairfax, Captain J. G.

Long, Major Eric

Sprot, Sir Alexander

Falle, Sir Bertram G.

Looker, Herbert William

Stanley, Lieut.-Colonel Rt. Hon. G. F.

Fanshawe, Captain G. D.

Lucas-Tooth, Sir Hugh Vere

Stanley, Lord (Fylde)

Fermoy, Lord

Lumley, L. R.

Steel, Major Samuel Strang

Fielden, E. B.

MacAndrew, Major Charles Glen

Storry-Deans, R.

Forestier-Walker, Sir L.

Macdonald, R. (Glasgow, Cathcart)

Stuart, Hon. J, (Moray and Nairn)

Forrest, W.

McDonnell, Colonel Hon. Angus

Sueter, Rear-Admiral Murray Fraser

Foster, Sir Harry S.

McLean, Major A.

Templeton, W. P

Fraser, Captain Ian

Macmillan, Captain H.

Thompson, Luke (Sunderland)

Gadie, Lieut.-Col. Anthony

Macnaghten, Hon. Sir Malcolm

Thomson, Rt. Hon. Sir W. Mitchell-

Galbraith, J. F. W.

Macquisten, F. A.

Tinne, J. A.

Ganzoni, Sir John

Makins, Brigadier-General E.

Tryon, Rt. Hon. George Clement

Gates, Percy

Malone, Major P. B.

Turton, Sir Edmund Russborough

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

Manningham-Buller, Sir Mervyn

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

Goff, Sir Park

Margesson, Capt. D.

Warner Brigadier-General W. W.

Gower, Sir Robert

Marriott, Sir J. A. R.

Warrender, Sir Victor

Graham, Fergus (Cumberland, N.)

Merriman, Sir F. Boyd

Watson, Rt. Hon. W. (Carlisle)

Grant, Sir J. A.

Milne, J. S. Wardlaw-

Watts, Sir Thomas

Grattan-Doyle, Sir N.

Mitchell, W. Foot (Saffron Walden)

Wayland, Sir William A.

Greenwood, Rt. Hn. Sir H. (W'th's'w, E)

Mitchell, Sir W. Lane (Streatham)

Wells, S. R.

Gretton, Colonel Rt. Hon. John

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

White, Lieut.-Col. Sir G. Dairymple

Grotrian, H. Brent

Moore, Lieut.-Col. T. C. R. (Ayr)

Williams, A. M. (Cornwall, Northern)

Guinness, Rt. Hon. Walter E.

Morrison, H. (Wilts, Salisbury)

Williams, Com. C. (Devon, Torquay)

Gunston, Captain D. W.

Nelson, Sir Frank

Williams, Herbert G. (Reading)

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

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

Wilson, R. R. (Stafford, Lichfield)

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

Nicholson, Col. Rt.Hn.W.G.(Ptrsf'ld.)

Winby, Colonel L. P.

Hammersley, S. S.

Nield, Rt. Hon. Sir Herbert

Windsor-Clive, Lieut.-Colonel George

Hanbury, C.

Nuttall, Ellis

Winterton, Rt. Hon. Earl

Hannon, Patrick Joseph Henry

Oakley, T.

Wolmer, Viscount

Harland, A.

Penny, Frederick George

Womersley, W. J.

Hartington, Marquess of

Percy, Lord Eustace (Hastings)

Wood, E. (Chester, staiy'b'ge & Hyde)

Harvey, Major S. E. (Devon, Totres)

Perkins, Colonel E. K.

Wood, Rt. Hon. Sir Kingsley

Hasiam, Henry C.

Peto, Sir Basil E. (Devon, Barnstaple)

Woodcock, Colonel H. C.

Headlam, Lieut.-Colonel C. M.

Peto, G. (Somerset, Frome)

Worthington-Evans, Rt. Hon. Sir L.

Henderson, Lieut.-Col. Sir Vivian

Pilcher, G.

Yerburgh, Major Robert D. T.

Henn, Sir Sydney H.

Pilditch, Sir Philip

Hennessy, Major Sir G. R. J.

Price, Major C. W. M.

TELLERS FOR THE NOES.—

Hills, Major John Waller

Ramsden, E.

Major The Marquess of Titchfield and Captain Wallace.

NEW CLAUSE.—(Amendment of 14 and 15 Geo. V., c. 21, Section 25.)

Section twenty-five of the Finance Act, 1924, shall read as if the following words were added at the end of the section: "or in order to improve the sanitary condition of such premises."—[ Lieut.-Colonel Ruggles-Brise. ]

Brought up, and read the First time.

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

This proposed New Clause deals with an anomaly in connection with the maintenance claim under Section 25 of the Finance Act of 1924. The Section provides for the inclusion in a maintenance claim of the cost of additions and improvements, where certain conditions are fulfilled. One condition is that no rent is payable in respect of the additions or improvements; and the second is that they are made in order to comply with the provisions of any Statute, or any regulation or by-law passed by a local authority. The object of the New Clause is to provide that the cost of additions or improvements made for sanitary purposes, where an order has not to be made by the local authority, shall also be capable of inclusion in the maintenance claim. The present position is that where a landowner or occupier takes the trouble to bring his premises up to the standard required, whether by Statute or by local by-laws or regulations, in advance of any compulsory order, such owner is debarred from including the cost of those additions and improvements in his maintenance claim. On the other hand, his less efficient neighbour who waits until compelled by an order of the local authority, before incurring the expense of bringing his premises up to the required standard, is allowed, under the existing law, to include the cost in his claim. Obviously, there is an anomaly and an injustice which I am sure I need only mention in order to convince the House of the force of the arguments in favour of the New Clause.

I beg to second the Motion.

I support the proposed New Clause with every confidence that it will commend itself to the Chancellor of the Exchequer and to the House generally. As has been clearly shown by the Mover, the law as it stands is a direct incentive to the slack or careless management of landed properties and estates. It is in the interests of everybody that farm properties should be kept in a sanitary condition. The present position is that if a landlord does nothing whatever to keep his premises in a sanitary condition and allows them to fall into such a state that the local sanitary inspector has to give him a direct order to put them into a sanitary condition, such landlord, having done the work under the order, can charge the cost in his maintenance claim. On the other hand, the landlord of another type who does not wait until compulsion has been applied to him by the local authority, but who keeps his buildings and premises in a sanitary condition, without compulsion, is debarred from charging the cost in his maintenance claim. The proposed New Clause would remove the incentive which exists at present to a landlord to take no action unless compelled by the sanitary author- ity and would substitute a direct incentive to all landlords to keep their premises in a healthy, sanitary and fit condition without compulsory orders.

I think my hon. Friends are under a misapprehension as to this proposal. As I am advised, it is not solely a question of those who carry out improvements according to orders made by local authorities being allowed to make this charge in the maintenance claim. The terms of the rule are very definite and very wide. The rule includes the replacement of farmhouses, farm buildings and cottages and any addition or improvements to farmhouses, buildings or cottages, in so far as they are made in order to comply with the provisions of any Statute—I would call my hon. Friend's attention to that—or regulation or by-law of a local authority.

That is the very point. It is perfectly clear that unless the improvements are made in compliance with some order by a local authority, it is impossible to charge the amount as maintenance. It should be possible to charge for such work in a claim for maintenance, without having waited for an order from the local authority before doing the work.

Again, it seems to me there is a misunderstanding as to the exact meaning of the word "order" in this respect. The rule refers to a statute and to anything done under the terms of a Statute, not necessarily after attention has been called to it by a local authority. What my hon. Friends are now seeking is that, in addition to this, certain work of an undescribed and unspecified character should also rank for the purposes of a maintenance claim. I ask the House to observe that this is a much wider proposal than appears on the face of the new Clause. The words used are of the most general character:

"or in order to improve the sanitary conditions of such premises."

There is no definition, and no standard is laid down in relation to what constitutes an improvement in this respect. It is to be a hypothesis, above and beyond all the Statutes of this House, and all the by-laws and regulations of local authorities. No Judge is suggested who shall decide what is to be an improvement in the sanitary conditions of premises. It might be contended that any reconstruction of cottage property would come under that heading—any raising of roofs or bringing in of additional light and air—all of which might be desirable and necessary, but might be the subject of cute controversy between the fiscal authorities and the landlord in question. All that might be brought within the ambit of the law by this suggestion. Furthermore, the House has already dealt with this question in the Housing (Rural Workers) Act. There you have a Treasury concession to anybody making an improvement in rural housing. That concession is subject to a local examination which would be necessary, if we are not to set up an army of officials in order to make inspections and decide what is and what is not an improvement in the sanitary condition of the property. In addition to these considerations, I am advised, although I am not an expert in this matter, that the fiscal system of this country makes it definite, that the general bar against allowing capital expenditure for Income Tax purposes is absolute, or as nearly absolute as possible. The right hon. Gentleman who was Financial Secretary to the Treasury under the Labour Administration laid it down definitely when dealing with a proposal in respect of maintenance in 1924:

"There is not the least doubt that the Clause…makes a certain allowance in respect of capital expenditure. It is perfectly plain that with the best will in the world we could only take steps in that direction with very great care and hesitation, because immediately we made a concession to one class, it would be pressed for by other classes, and in the course of time the structure of Income Tax administration would be undermined."—[OFFICIAL, REPORT, 15th July, 1924; cols. 247-248, Vol. 176.]

There is, thus, a definite fiscal objection to the course proposed in the New Clause, but I base my opposition to it more precisely upon the facts first that there is no criterion of an improvement in the sanitary condition, and, secondly, that the House has already dealt with the matter in the Housing (Rural Workers) Act, which allows for a lump sum to be given and allows for control by the local authorities who alone have the machinery to supervise such matters.

I confess that I was rather disappointed at my hon. and gallant Friend's reception of this New Clause. I think he overlooked one or two important points. Unless I am mistaken, the Housing (Rural Workers) Act, on which he based part of his refusal, applies to cottages rather than to town houses. The case to which my hon. Friends referred was the case of a landlord who instals a new bath in a farmhouse, which is very desirable and for which there is an increasing demand. Scarcely any private house in England a few generations ago had a bath with hot and cold water running, and even one generation ago scarcely a farmhouse had this convenience, but the desire for this sort of thing is extending, and it is more and more being held desirable that baths should be installed in farmhouses. The landlord who instals a bath in a farmhouse, under the law as it exists, will not be entitled to show that very desirable alteration in his maintenance claim. If he does anything more than the minimum to improve the condition of the farmer, and of the property generally, he is not entitled to put that in his maintenance claim, and I think my hon. and gallant Friend must agree that that is not a desirable state of affairs.

The cost of this concession could only be very small indeed, because I would remind him that the Section which we are seeking to amend, Section 25 of the Finance Act, 1924, contains these words: next year's Budget, and reflect whether they cannot by then make this concession, which, as I say, would cost little but would do a very considerable amount of good.

I also should like to press this matter for further consideration by my hon. and gallant Friend, particularly in connection with the point brought forward by the Noble Lord the Member for Western Derbyshire (Marquess of Hartington), dealing with water, whether for baths or for sanitary conveniences. We all know that in Debates in this House in the last few years this question of the provision of baths and other water facilities, particularly in the rural areas, has been very much pressed on the consideration of Members of this House. There are cases constantly arising, of which I have personal knowledge, in which, for one reason or another, possibly originally connected with stock on the farm, a certain development of water supply has been justified; and it is quite feasible, therefore, that expenditure having been incurred, to extend it in the way of conveniences, not only for the farmhouse, but also for the cottages occupied by rural workers. If you have a cottage which has been equipped with no bath at all and an earth closet at the back of the garden and that gets into a bad state of repair, you may have a landlord who, with very small expense, can lay on water and put in sanitary conveniences, but, on account of the fact that he is not enabled to include that in his maintenance claim, he satisfies himself with putting into sanitary condition those comparatively obsolete conveniences which are still perfectly sound, but not up to date.

A concession of this sort would undoubtedly give further encouragement, not only in that respect, but where possible for the provision of baths or the laying on of running water to cottages, all of which entails expense, which does not mean an increased rental to the landlord, but which means a very marked increase in the amenities and comforts of the people occupying them. It seems to me that we in this House ought to do everything that is reasonably within our power to encourage that sort of movement, in the interests of the comfort of the people who occupy these buildings. I hope the Under-Secretary will reconsider this matter. I admit that the Clause may be too wide as drawn, and it may be impossible, perhaps, that it should be included in the Bill at this time; but I think the Clause does merit sufficient consideration, and that my hon. and gallant Friend should bring it forward with a strong recommendation to mercy, so that on some future occasion we may be able to include this very necessary Amendment in our legislation.

With regard to the laying on of a water supply, I would press upon the hon. and gallant Gentleman on the Treasury Bench that this is a point of some substance for the wives of the agricultural workers and of the farmers themselves, more especially for those who live in cottages. There is an old query, "Why does a woman grow old sooner than a man?" There is no question that the carrying of water to a cottage from a pump some distance away is a material factor in a woman's growing old sooner than a man in many a rural village, and there is no question that, if an allowance of this kind would make for the laying on of water from a pump or a stream direct to a cottage, it would be of great service in the rural districts. I think, therefore, the Government will be well advised to give careful attention to this point.

I should like to support this new Clause. The fact is that inspectors of taxes vary considerably in their practice in different parts of the country. Some of them are generous in allowing things of this sort to be inserted in maintenance claims, and others are not, and these officials are constantly being changed. Sometimes you may get one who has been stricter than his predecessor, and vice versa. Now you have two cases. You have the case of the owner of farm property which is defective in some sanitary respect, and, the matter having been brought before the county council, an order has been given for him to make the improvement suggested. In such a case, he would find no difficulty in inserting that in his maintenance claim. But you have, on the other hand, the improving landlord who wishes to see his people in good circumstances and con- ditions, and who, out of his own pocket and without any prospect of receiving any extra rent, puts a statutory improvement into his farm property. In that case, there is the risk that when he renders his maintenance claim the inspector of taxes will cut it out, and he will have to pay Income Tax upon the expenditure which he has made. We have been hammering at this sort of thing for some time—ever since I have been in Parliament—and we have succeeded in getting some improvements and concessions from the Treasury. I consider, from my practical experience in managing my own property myself, and making out my own maintenance claims with my own hand, that it is necessary that some such words as are here suggested should be added.

I am sure my hon. Friends will realise that it would not be possible for me to make any further statement at this stage, or to alter the decision which has been come to, that it is not possible to accept the new Clause here and now. What is more, I would warn my hon. Friends, as no doubt they are aware, that there are great difficulties in making inroads upon the principle that no allowance should be made in respect of capital expenditure for Income Tax purposes. I shall certainly discuss the matter, not merely with my right hon. Friend the Chancellor of the Exchequer, though I am sure that he will meet me with a stern brow in this matter, but with my right hon. Friends the Minister of Health and the Secretary of State for Scotland, who, I am sure, if any suggestions can be made which will improve the condition of the rural housing, will be most willing to argue the case, and will indeed argue it with some strength. But hard cases make bad law, and there are principles of taxation which have to be maintained, even at the cost of apparently holding up and delaying something which in itself is desirable. I would say that on the considerations which have been brought forward—the consideration in particular of the introduction of water, which was discussed by the hon. Member for Leith (Mr. E. Brown) and my hon. and gallant Friend the Member for Yeovil (Major Davies)—I think that would be covered by the Housing (Rural Workers) Act, that the landlord bringing water to a farmhouse and desiring to carry it on to rural cottages would certainly be covered by that Act. There is a certain danger in passing Statute after Statute to deal with such difficulties and not using to the full the Statutes which are already on the Statute Book. Dealing with the position of rural housing, the House has already put on the Statute Book a Statute of considerable importance which is not yet being fully operated, and I desire to see it more fully operated. With regard to the arguments brought forward, and particularly the point made by the hon. Baronet the Member for North Lanark (Sir A. Sprot), that there was variance in practice between one part of the country and another, I am sure this discussion will be of use, because the subject has been ventilated and will be brought to the notice, not only of the Chancellor of the Exchequer, but of the two Ministers who are closely connected with housing; and I hope my hon. Friends, having raised the question, will see their way now to withdraw the Clause.

I am keenly disappointed with the reply of the hon. and gallant Gentleman. I listened carefully to the Debate, .and I think that hon. Members opposite and my hon. Friend behind me, the Member for Leith (Mr. E. Brown), have made out a very complete case. The Debate has been going on for something like half an hour, and there has been ample time to consult the Chancellor of the Exchequer, who is not in his place. In any case, the cat is away, and there is ample opportunity for the mice to gambol a little. The hon. and gallant Member said that hard cases make bad law, but surely he is not going to call sanitation a hard case. The Clause says nothing about improving the amenities of cottages or buildings; it is dealing with sanitation, and surely that is the minimum. The hon. and gallant Member spoke about principles of finance, but what is a principle of finance in this connection? It is a purely arbitrary thing. He said that it has been a principle that no allowance in respect of income shall be made in a matter where a capital sum has been expended, but a principle of that kind should surely give way to the much broader consideration that every encouragement should be given to the provision of what is not comfort, but necessity. The hon. Member for North Lanark (Sir A. Sprot) told us in moving terms how he personally looked after these things on his own property, and how he was filled with a desire that his tenants should be even as he is, especially in matters of sanitation; and I think, in the half hour during which this Debate has been going on, the hon. and gallant Member and his colleagues might have taken some chance to make an offer a little more substantial than that of merely considering these arguments.

6.0 p.m.

The hon. and gallant Gentleman says that the matter has been ventilated. Ventilation has to do with sanitation, and we should like something more substantial. I do not know whether hon. Members who support this Amendment are going to any further lengths in the matter, and whether they propose to go into the Lobby, but I should like to see some expression of opinion on the part of the large minority of Members who support this Amendment that the arguments have been put forward on behalf of a case which the House substantially approves. I think that we are entitled to be keenly disappointed.

I rather understood from the Under-Secretary of State for Scotland that he was of opinion that all sanitary improvements that were necessary under the Sanitary Acts came rightly under the maintenance claim, and that those that might be put down as pure improvements did not. I think that that is right. I would point out, however, that there is one over-riding consideration in all matters that affect the inclusion of improvements in the maintenance claim, and that is that they should be necessary to maintain the rent, and should not cause any increase of the rent. It is clear that a great many of these sanitary improvements, such as the introduction of a water supply, or new sanitary appliances, say, in lieu of an earth closet, are really necessary to maintain the rent, and that, according to the improved scale of living which we now enjoy, the old conveniences cannot maintain the same rental in many country houses. But in the case of farmhouses and country cottages a difficulty arises in satisfying some inspectors of taxes that these improvements are necessary to maintain the rent, or, in other words, that the same rent could not be obtained if the more sanitary water supply or convenience were not provided. I can see some difficulty in leaving the words as they are in this Amendment on the ground of their generality, and I would therefore suggest that something should be done under the administrative powers possessed either by the Minister of Health or by the Treasury, by which the inspectors of taxes could be directed to consider these maintenance claims from the more advanced sanitary point of view, and that where they have claims of this limited nature they should be considered prima facie as being necessary to the maintenance of rent.

I am very disappointed that my hon. and gallant Friend did not see his way to accept this Amendment. His point is covered by the consideration of which we have just been reminded by the hon. and learned Baronet the Member for East Grinstead (Sir H. Cautley). This Amendment was entirely subject to all the many safeguards existing both under Rule No. 5, and also to the limitations, which I quoted in my opening remarks, in Section 25 of the Finance Act.

I would remind the hon. and gallant Member that he can only speak twice by leave of the House.

May I ask if I have the leave of the House? [HON MEMBERS: "Agreed!"] I do not think that my hon. and gallant Friend dealt with the main point of my argument when I moved this Amendment. I pointed out the great anomaly which now exists under Section 25 of the Finance Act, 1924. He appealed to the Financial Secretary to the Treasury in the Labour Government, and quoted words from him, but I should like also to appeal to the same source, and to ask the right hon. Member for Central Edinburgh (Mr. W. Graham), who was in office at the time of the passing of the Finance Act, 1924, whether he contemplated that such a anomaly should arise when he was putting this particular Section through the House? It is perfectly obvious that the justice of the position was clear, and that where anybody was compelled to spend money by the provisions of the Statute or under the regulations or by-laws of local authorities, this should be permissible in his maintenance claim. The fact that anybody, who in advance of compulsion spent money for the same purpose, should be prevented from including these costs in his maintenance claim, is an anomaly that did not present itself to the mind of the Financial Secretary of the day, or I am certain that he would have put it right in framing the Clause in the first instance. I cannot say that I am satisfied with the assurance of my hon. and gallant Friend, and I feel that it is a rather unsatisfactory position, but if he can state that, in addition to his further conversation with the Chancellor of the Exchequer and the Minister of Health and others, which he has promised, he will give an assurance that he will give an instruction to the various revenue officers that they should take a reasonable view in deciding these matters, until a Clause dealing with the question can be inserted in the Finance Bill next year, I shall feel justified in withdrawing the Amendment.

I had not intended to say a word on this Amendment until the hon. and gallant Member for Maldon (Lieut.-Colonel Ruggles-Brise) referred to the circumstances which surrounded the Debate in 1924. I very well remember that this Section was pressed upon us from all sides of the House, and it was very strongly advocated on the ground that we should do anything in our power to encourage the improvement of agricultural property. The House will realise, however, the difficulties involved. In 1924, in association with the then Attorney-General, we inserted in the Finance Act of that year the Clause to which hon. Members have referred, but we were compelled to add safeguards, so that, provided allowances were made for improvements to farm property and cottages, they should be subject to the condition that no increase in rent should be involved and that they should also proceed on the basis referred to later in the Section that they were made in order to comply with the provisions of any statute or regulations of the local authorities. All that is perfectly plain and clear and the broad object, as I understood it then, was that we had to be very careful, in making an allowance which would cover an improvement, to try to keep in the field of maintenance, and not leave that field for the field of capital expenditure, which, of course, in taxation raises all kinds of separate and difficult problems. That was the kind of atmosphere in which this Section was passed.

The hon. and gallant Member for Maldon asked me whether it was contemplated that a difficulty of this kind would arise. I do not think that it was contemplated, and I am by no means satisfied to-day that the difficulties have in fact arisen. I believe that the Section as drawn is quite comprehensive in character, and if, as my hon. and gallant Friend the Under-Secretary for Scotland mentioned, we are to keep in the field of improvements in the sense of maintenance, as distinct from capital expenditure, then the phraseology of the Section of the Act of 1924 is undoubtedly the phraseology we must adopt. Let us make our improvements if we will under Acts of Parliament dealing with housing and house building in urban and rural areas, but do not let us complicate the Finance Act by Sections which are very difficult to interpret, and which from the point of view of taxation and fiscal practice are utterly wrong.

One other consideration emerges of an important character, and it was indicated by the speech of the hon. and learned Baronet the Member for East Grinstead (Sir H. Cautley), who seemed to suggest that it might be possible for the Board of Inland Revenue administratively to cover this class of difficulty. I do not charge the hon. and learned Baronet for one moment with seeking to go beyond what is the strict letter of the law, but I would remind him of this consideration, that the Public Accounts Committee within recent times, and not once but on many occasions, have directed attention to the great danger of any departure from the strict terms of the Statute; and, in point of fact, in the very Report of this year, if I remember rightly, it is laid down that the greatest care must be exercised in reporting those unavoidable departures from the Statute, as I am afraid would be inevitably involved in any kind of proposal such as the hon. and learned Baronet suggests. I do not charge him with making that suggestion; I only mention it as a danger that would almost inevitably arise. For these reasons, I do not think that the Clause is the way in which to treat this problem at all. It is far better to do it under the heading of housing legislation than to get into the field of capital expenditure by way of concessions in the Finance Act, for that opens the door to great difficulty and great loss to the Exchequer.

Of course, I should be most willing to give the assurance asked for by the hon. and gallant Member for Maldon (Lieut.-Colonel Ruggles-Brise) that the Revenue Officers should be asked to interpret this Section in a reasonable way, and that they should be asked to take a reasonable view of this matter. I cannot give a further assurance as to the introduction of the Clause next year. The hon. and gallant Gentleman says that he is satisfied that the emergency contemplated has, in fact, arisen. I do not say that it has not arisen, but the House has not been satisfied that it has arisen. In these circumstances, with the assurance that the Revenue Officers will be instructed to take a reasonable view, I hope that my hon. and gallant Friend will not press the Motion.

In view of what my hon. and gallant Friend says, I beg to ask leave to withdraw the Motion.

Motion and Clause, by leave, withdrawn.

The new Clause in the name of the hon. and gallant Member for Ayr Burghs (Lieut.-Colonel Moore)—( Amendment of Schedule 4 of the Finance Act, 1927)—is out of place. It should be moved as an Amendment to the Schedule. The next new Clause to be selected is that in the name of the hon. and gallant Member for North St. Pancras (Captain Fraser).

May I ask, Sir, why my new Clause—( Amendment of s. 15 of Finance Act, 1926)—has not been called?

I should be setting a very bad precedent were I to give reasons for my selection.

NEW CLAUSE.—(Exemption, of scientific films from duty.)

(1) The Customs duties imposed by Subsection (1) of Section three of the Finance Act, 1925, on negative and positive cinema- tograph films shall cease to be payable in the case of a film which is certified by the Royal Society of London for promoting Natural Knowledge to be solely an illustration of scientific investigation for exhibition before members of a recognised scientific body and which is imported only for the purpose of such exhibition free of charge.

(2) If any person exhibits, otherwise than as aforesaid, any film which has been exempted from duty under this Section he shall on summary conviction be liable in respect of each offence to a fine not exceeding fifty pounds.—[ Captain Fraser. ]

Brought up, and read the First time.

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

In 1925, under the Finance Act, a duty was placed upon all films imported into this country. At that time, it was not realised probably that the film, apart from being a means of amusement and education, is also sometimes a record of scientific work of no interest to the general public but of very great value to a limited number of scientific workers. In the last two or three years great developments have taken place in the technique of films for recording and illustrating scientific research. It is generally agreed that it is undesirable to place a tax upon scientific work or, for that matter, upon knowledge of any kind, and because some of us hoped the House might be willing to remove this tax in the case of these films some of us put down a new Clause at an earlier stage of this Bill. The Financial Secretary, and later the Chancellor of the Exchequer himself, said that the administrative difficulties were very great, but that they would do their best to meet them, and I am happy to say that by instruction of the Chancellor of the Exchequer conversations have taken place with Customs officials which lead me to suppose that this Clause could be worked by them if the House were to pass it. I am also able to say that the Royal Society will undertake the liability which it is suggested they should be asked to undertake. Accordingly, I ask the Financial Secretary if he will accept this Clause, and I can assure him and the House that if he does, men of science will be very grateful, and a gesture of goodwill to those who do most valuable work which so often goes unrecognised will have been made by the House.

I beg to second the Motion.

If this concession can be made by the Government, it will be very helpful to the scientific and medical world, and will also give a stimulus to a small but very notable industry in this country which is concerned with the development and preparation of the best kind of films. Within my own knowledge there are in London two establishments to which, with the slightest encouragement, negative films would come from all over the world, films which it is desired should be treated in the most expert way possible. This industry has been a good deal handicapped by the imposition of duties on films, and I think the hon. Member will realise that if he can make a concession in regard to some of these films, on which the best work is done, and on which the greatest profit accrues to British employers and British workmen, it will do a great deal to help this particular industry. Of course, the considerations advanced by the hon. and gallant Member for North St. Pancras (Captain Fraser) cannot be answered. If the Government can relax the duty on these films, they will undoubtedly help the scientific world, and will give a tremendous stimulus to the preparation of scientific films for use in medical and surgical cases, and the good done in that way will be very widespread indeed.

I remember very well the discussion which took place when my hon. and gallant Friend the Member for North St. Pancras (Captain Fraser) raised this same point in Committee. I was sorry then, as was also the Chancellor of the Exchequer, that we could not at that time accept his Clause, the reason being that it was difficult to get a definition of "scientific investigation." The Chancellor of the Exchequer said that he would look into the matter to see whether he could find a way out, and I am now very glad to say that I am able to accept this Clause. We have found the way out with the help of the hon. and gallant Member. The Royal Society of London has been good enough to say that, when required, it will certify a film which is said to be an illustration of scientific investigation. Theirs is a decision which, of course, the Customs officials can accept. We can accept very easily a certification by the Royal Society of London. I daresay hon. Members will wish to know how much this concession will cost. We do not think it will be more than £200, and probably not as much as that, because in many cases films would not be imported if a duty were imposed upon them. I am delighted to be able to accept the Clause.

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

Clause added to the Bill.

The next Clause standing in the name of the hon. and gallant Member for Hitchin (Major Kindersley)—( Amendment of Finance Act, 1927, s. 42)—is not in order. If it were added to the Bill, undoubtedly it might impose a charge which does not now exist. But if the hon. and gallant Member likes to say that is not so, I will listen to him.

I venture to submit that this Clause is purely declaratory of the law as it was stated to us by the Attorney-General at an earlier stage of the Bill. If the Attorney-General's view of the law is correct, this Clause cannot impose a charge which is not already imposed by the Bill. The question arose in this way. The Attorney-General was asked by my hon. Friend the Member for York (Sir J. Marriott) whether if a man's income in 1927–28 was £10,000 and in 1928–29 it dropped to £5,000, on what income he would pay Sur-tax on 1st January, 1930. This was the Attorney-General's reply:

"there is no single year the income of which is taken as the measure of liability for either Super-tax or Sur-tax twice over. In other words, assuming that the income of the gentleman in question in 1927–28 was £10,000, he would pay upon that on 1st January, 1929. If his income suddenly fell from £10,000 to £5,000 for the year 1928–29, he would then pay Sur-tax on the let January, 1930, on the reduced income of £5,000."—[OFFICIAL REPORT, 3rd July, 1928; col. 1246, Vol. 219.]

Our only object in putting down this New Clause is to get into the Bill a statement of the law as given by the Attorney-General. This question has been much discussed, and there are those who disagree with the learned Attorney-General in his interpretation, and our only desire is to get a declaratory Clause inserted which may make it abundantly clear and carry out what the Attorney-General has already said is the law. If this Clause is not accepted, perhaps the Government will help us to put in other words which they think would make it quite clear.

May I submit one further consideration? May I ask whether you would permit the new Clause to be moved if it were put in a slightly different form, and were prefaced by the words:

"At the end of the said Section there shall be inserted the following words: It is hereby declared, for the purpose of removing doubt,"

and so on? That would make it a purely declaratory Clause. It is the intention that the Clause should be declaratory. It was never intended to alter the imposition of taxation or to vary it in any way, but merely to give the public at large the satisfaction of knowing precisely what the Clause was intended to effect. It is intended to clarify the interpretation of the law which, as my hon. and gallant Friend the Member for Hitchin (Major Kindersley) has pointed out, has been very much canvassed since the Debate was held about a fortnight ago. May I direct your attention once again to the words which the Attorney-General used in answer to a direct question from me? If what the Attorney-General said on that occasion is the law, then this Clause will make no difference whatever in the law. It will merely serve as a declaratory statement, and I would like respectfully to ask whether we may have your ruling on whether we may put the Clause in the slightly amended form which I have suggested.

I am afraid that the observations of the hon. and gallant Member for Hitchin (Major Kindersley) and the hon. Member for York (Sir J. Marriott) have not altered my opinion that if this Clause were added to the Bill it might have the effect of increasing the charge on the taxpayer. I do not think the words which it was suggested should preface the Clause would make any difference, because a declaration of the intention of the Government would be of no value whatever if there was the possibility of a charge being imposed. My views on this Clause are not altered, but I should be glad to have them confirmed if the Government are willing to confirm them by the Financial Secretary to the Treasury.

Since you have asked me, Sir, I will do the best I can. We have examined this Clause carefully and we have come to the same conclusion as you, Mr. Speaker, that the proposal that the Surtax for 1928–29 should be paid on actual income instead of, as now, on statutory income, would in some cases put a charge upon the taxpayer as in certain cases actual income would be greater than statutory income. For that reason we came to the conclusion that you Mr. Speaker, have come to that the Clause is out of order. If you, Mr. Speaker, would like me to examine the point more closely and in greater detail and analyse it, I am here at your service.

I do not think that will be necessary. My views on the effect of the Clause being what they were before, and being now confirmed by the Government, I certainly could not allow the Clause to be moved.

May I say that the statement just made by the Financial Secretary to the Treasury is entirely satisfactory, because it proves that we have been right all along, if I may venture to say so, and that the Attorney-General is wrong.

NEW CLAUSE.—(Amendment of 8 and 9 Geo. V., c. 40, Schedule E, Rule 9.)

Rule 9 of Schedule E of the Income Tax Act, 1918, shall be amended by the substitution of the words "for the purpose of performing" for the words "in the performance of" wherever the latter words occur, and by the insertion after the word "horse" of the words "motor car or other means of conveyance."—[ Sir J. Marriott. ]

Brought up, and read the First time.

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

I am afraid this new Clause must have a somewhat cryptic appearance, but I hope I may make clear its intention, and in order to do so I would refer to the Schedule of the Income Tax Act, 1918. Schedule E of that Act says: Rule 9 of the same Schedule reads as follows:

I beg to second the Motion.

In other cases we allow certain necessary expenses, and I think the expenses in the case which has been so well described by my hon. Friend the Mem- ber for York (Sir J. Marriott) should be allowed.

I think this is one of the most cryptic Clauses we have had to consider, and I have spent a long time in trying to unravel what is in the mind of my hon. Friend the Member for York (Sir J. Marriott). I desire to know exactly what my hon. Friend wishes to do. As I read Rule 9, as it would be amended by this Clause, it would run:

"If the holder of an office of employment of profit is necessarily obliged to incur and defray out of the emoluments thereof the expenses of travelling for the purpose of performing the duties of the office of employment.…"

and then he goes on to provide that after the word "horse" the words "motor car or other means of conveyance" should be added. What the hon. Member really seeks to do is to assimilate the Schedule E practice as regards allowing expenses to the Schedule D practice. At the present time, there is no real analogy between those two cases, nor does the present law provide any anomaly. The business or professional man will voluntarily incur all sorts of expenses for the purpose of getting his profits. In the case of a person who draws a particular salary for a particular job, all that he can reasonably claim is the sum incurred by way of expenses is what he already gets `"in the performance of the duties of the office." The hon. Member for York desires to extend Rule 9 to cover the expenses necessarily incurred in keeping and maintaining a motor car or any other means of conveyance to enable the taxpayer to carry on his office or employment. For this purpose the Clause is quite unnecessary. In the case of running a motor car, if those expenses are necessarily incurred, "in the performance of the duties of the office," he would be covered by the existing rule. That is to say if those expenses are necessarily incurred in the performance of the duties of the office, they can be allowed, but if not, such an allowance cannot be claimed. If the expenses are necessarily incurred then they can be claimed under the present law. For these reasons, I am unable to accept this new Clause, and I hope after the exhaustive examination which this question has received, my hon. Friend will consent to withdraw the Clause.

I beg to ask leave to withdraw the Motion. I think the Financial Secretary has quite rightly dealt with the intention of my new Clause. Of course I never expected that my proposal would be accepted on this occasion by my hon. Friend. I know I raised my point at a rather late stage in our discussions on the Finance Bill, but I did so because it is a question which affects a very large number of people upon whom the present law inflicts a very cruel hardship. I trust the Government will be able to put this matter right another year.

Motion and Clause, by leave, withdrawn.

CLAUSE 2.—(Duties on hydrocarbon, oils.)

There are a number of Amendments on the Paper dealing with this Clause. I notice that the Chancellor of the Exchequer has an Amendment on the Paper which meets most of the other questions raised by hon. Members. At first I thought it would have been better to have taken the Amendment standing in the name of the hon. and gallant Member for Torquay (Commander Williams)—in page 2, line 18, after the word "gallon," to insert the words, "on oil used by fishing vessels and." It might be better to leave the discussion about fishing vessels until we reach the Amendment standing in the name of the Chancellor of the Exchequer—in page 3, line 30, at end, to insert a new Sub-section:

"(8) If, on an application made for the purposes of this Sub-section by the owner of a fishing boat entered in the fishing boat register, it appears to the satisfaction of the Commissioners that the applicant has at any time within the period of six months preceding the date of his application, or within such longer period preceding that date as the Commissioners may in any special case allow, used any quantity of hydrocarbon oil on board the boat, he shall be entitled to obtain from the Commissioners repayment of any duty which has been paid in respect of the oil so used:

Provided that—

( a ) an application for the purposes of this Sub-section must be made in such manner as the Commissioners may prescribe; and

( b ) no person who has previously made an application under this Sub-section for repayment of duty shall be entitled to make a further application until the expiration of at least three months from the date on which the last preceding application was made.

In this Sub-section the expression "fishing boat" means a boat used for the purposes of fishing by a person gaining a substantial part of his livelihood thereby."

If we agree to take a general discussion on the Chancellor of the Exchequer's Amendment, shall we be able to deal with the point raised in the Amendment standing in the name of the hon. and gallant Member for Torquay (Commander Williams) to which you, Mr. Speaker, have alluded? I would like to point out that the issues raised by the hon. and gallant Member for Torquay are not quite the same as those raised in the Amendment to be moved by the Chancellor of the Exchequer. One of those Amendments would prevent the tax being levied at all, and the other is one to eliminate the system of rebates. I should prefer that the fishermen should not be called upon to fill up a complicated form.

The object of my Amendment has been met by the promise made by the Chancellor of the Exchequer to look into this matter, and therefore I shall not move my Amendment. I shall wait until the Chancellor of the Exchequer moves his Amendment, which, I think, meets the whole case very fully.

It was my Amendment, aided by the hon. Member for Leith (Mr. E. Brown), which originally led to the promise given by the Chancellor of the Exchequer. I am glad that the right hon. Gentleman has decided to meet us on this point.

I think, in the circumstances, that I had better stick to my original idea of taking the discussion on the fishing vessels when we reach the Amendment standing in the name of the Chancellor of the Exchequer. The hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy) has two Amendments on the Paper. The first is in page 2, line 18, after the word "gallon" to insert the words, "on light oils used in manufacturing processes and." The second Amendment standing in the name of the hon. and gallant Member is in page 2, line 21, after the second word "oils," to insert the words "other than turpentine and white spirit." I think we might take the discussion on both of those Amendments together.

Would your ruling, Mr. Speaker, prevent the discussion of the Amendment standing in the name of the hon. Member for Moseley (Mr. Hannon)—in page 2, line 29, at the end, to insert the words, "but it shall not include turpentine"—[ Laughter ]. This is not a laughing matter; it is a question of substance to those who manufacture turpentine.

I think the point raised in the Amendment standing in the name of the hon. Member for Moseley could be included in the general discussion.

I beg to move, in page 2, line 18, after the word "gallon," to insert the words "on light oils used in manufacturing processes and."

I understand that we are going to discuss the general question of the duty which it is intended to apply to the motive spirit of motor vehicles, but which—I think largely owing to oversight on the part of the Excise officials and the Chancellor of the Exchequer's advisers—is also being applied to oils which are not used as motive spirit at all, but are used for manufacturing processes. I need not go into the matter at great length, but will just mention one or two of the uses to which these oils are put, apart from the driving of motor vehicles. I will begin with the lesser. There is, in the first place, the question of the use of petrol for cleaning purposes —for the cleaning of leathers, gloves and so on. Surely, it was never intended to tax that, because, after all, it is a raw material used in industry. This industry is a small one, carried on for the most part by small people, and I think they deserve encouragement instead of this rather heavy burden. Then we have the question of the petrol that is used for extracting the oil from the residues of nuts, copra and so on that have been crushed, in order to make these residues into cattle feeding cake. That is a matter which affects every agricultural constituency in the country, and I hope that in this matter we shall have the support of agricultural Members, be- cause, unless we get some rebate here, the raw material used in the manufacture of cattle feeding stuffs will be taxed, and the price of these articles must go up.

We cannot pass on the tax to the foreigner, and at the same time there is heavy competition from abroad, so that we shall lose in a double sense—in the first place, we shall lose a certain amount of manufacturing trade, and, secondly, we shall admit a certain amount of foreign goods instead of manufacturing in our own country. Surely, the Protectionists in this House will support me in attempting to prevent this unfair discrimination against British manufactures. It will mean that the foreign manufacturer will be able to get his raw material without paying this tax, while our manufacturers will have to pay a tax of 4d. per gallon on the petrol that they use in their extraction processes. I am a Free Trader, but that does not mean that I want unfair discrimination against British manufacturers. Free Trade means fair trade; it means a fair field all round. I would only cite the case of one firm in my constituency, who, under the rating relief proposals of the Government, will receive a relief of £500, if all goes well, in 18 months' time, but, if the petrol which they use in their extraction process is taxed at 4d. per gallon, they will be mulcted at once to the amount of £1,000. I would appeal to hon. Members as a matter of fairness to support me in resisting such an imposition.

Lastly, and I know that the hon. Member for Moseley (Mr. Hannon) and his friends will support me in this, I come to the use of turpentine and white spirit for the manufacture of paints and varnishes. It surely was never intended to tax paints. White spirit is used in the manufacture of the finer kinds of enamels and varnishes, in which we have a considerable export trade, and I am glad to say, because I want to pay tribute where tribute is due, that the Exchequer have met us in that case by allowing on paints for export a rebate in respect of the tax imposed on the ingredients of those paints. That is to the good as far as it goes, but, if a drawback is allowed on paints for export, it surely is not impossible to allow an equal drawback on the manufacture of paints for the internal market. All the talk about complications, and opening holes in the diving bell to let in a rush of water, does not apply if you allow—and the Government have already made arrangements to allow—a rebate on manufactured goods for export.

One of the arguments used in favour of the Petrol Duty was that it would encourage the production of fuel of a similar description in this country from coal, but turpentine can never be produced in this country. It is a vegetable product which comes from abroad, and, try as we may, whether in Scotland or England or elsewhere, we can never produce turpentine in this country, but have to get it from abroad. Moreover, it cannot be used for driving any sort of engine at present known to invention. You cannot get a rebate on turpentine used for mixing paint and then use it for driving an oil engine or a motor car. There can be no cheating or swindling of that sort, and there is, I submit, no case whatever for taxing turpentine at all. It cannot be produced in this country, and, therefore, to tax it will not help the coal trade or the scientific production of fuel from coal. It must be imported from abroad, it must be used for the manufacture of paint—the cheaper kinds of paint—and to tax it makes it easier for foreign paints to come in, because the German, French or American manufacturer will not have to pay this tax on his turpentine. Moreover, this taxation will raise the price of paint to a certain extent, and that to a certain extent also will put up the cost of building operations—and therefore will increase housing costs—and of all kinds of, painting, from ships to rabbit hutches.

The case for the exemption of turpentine, white spirit and oils used in the manufacturing processes to which I have referred is overwhelming. I admit that the strongest case of all is that of turpentine, and I have promised to support the Amendment of the hon. Member for Moseley to exclude turpentine from the operation of the duty, but, as I happen to have been called first, I should like to state my case with regard to that Amendment at the same time. If we want to encourage production in this country, we can find ways and means to exempt these articles from the duty. During the War, when we had a Petrol Duty, exemptions were given in regard to petrol used for these manufacturing processes. There was no difficulty then, and I do not see why there should be any difficulty now. As for the argument of the Chancellor of the Exchequer that, if he gives way on one point, he will have to give way on another, that does not really apply. This case is that of a totally different class of users, and, because the right hon. Gentleman gives an exemption to oils used in these manufacturing processes, it does not mean that we can come along and say that the petrol used by commercial travellers, or doctors, or clergymen, must be exempted. That is a different class of case altogether.

I beg to second the Amendment.

I hope that by this time the Chancellor of the Exchequer, or whoever will speak for him from the Front Bench, will have decided to accept this Amendment. For some days we have been discussing the giving of assistance to industry under another Measure, and it seems strange that, while we have heard so much about industry requiring help, we should find the Chancellor of the Exchequer imposing a further burden upon it. It may be said that this is not going to be a very heavy burden as compared with the bulk of the costs imposed upon these industries, but when one realises the quantities of white spirit, turpentine and light oils that are used in many of the industries of this country, it is indeed a very serious charge that will be imposed upon them. The engineering industry is in a bad way, and shipbuilding, despite what may be said about it just now, has been suffering very severely; and there is also the motor industry. All these industries would, I suppose, be regarded as being included in the productive industries of which we have been speaking in connection with the granting of direct relief from rates, and it is passing strange that, while we are speaking of these industries requiring help, we should find this determination of the Chancellor of the Exchequer to impose upon them the burden of this taxation.

I speak particularly from the point of view of the colour, paint and varnish trade. That is an industry which has been able to lift its head during the last few years. Although it was in a bad way before the War, it has been able at any rate to get on to something like a reasonable footing, and, now that it has turned the corner into what appears to be something like prosperity, we ask that the Chancellor of the Exchequer should not put a further burden upon it. Turpentine is the basis of many paints which are used, not only for house building, as was mentioned by my hon. and gallant Friend the Member for Central Hull (Lieut.-Commander Kenworthy), but, to an extent that would surprise Members of this House, in engineering and shipbuilding establishments and also in the motor-car industry, and it really comes badly from a party that has talked about safeguarding in order to help the motor industry on to its feet, and is talking in the same way with regard to other industries, that it should now be imposing a further burden on these industries.

7.0 p.m.

I think that it might, perhaps, be convenient to the House if I make at this stage my observations on the Amendment which I have put down —in page 2, line 29, at the end, to insert the words "but it shall not include turpentine." This Amendment is to the same effect as the other Amendment of the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy)—in line 21, after the second word "oils," to insert the words "other than turpentine and white spirit"—except that it does not include white spirit, because, having carefully examined the difficult conditions under which the Chancellor of the Exchequer had to prepare his financial proposals for the year, I felt that it would, perhaps, be asking too much, in view of the concessions that he has already made, to invite him to exclude white spirit from the provisions of this Clause of the Bill. Therefore, I would like to support that part of the Amendment, which has just been moved from the opposite side of the House, dealing with turpentine. I agree with everything that has been said by the hon. Member for Rochdale (Mr. Kelly) as to the importance of that commodity to productive enterprise in this country. It would be a great misfortune if the Chancellor, in the admirable proposals he is making for the finance of the year, were to impose a disability upon an important national industry and, without perhaps realising the consequences of his action, he is certainly doing that in imposing this duty. Turpentine is a vegetable oil used in making various grades of paint, different varieties of varnishes, and certain embrocations and floor polishes and other things of that kind that enter into the domestic life of the country. I want the Financial Secretary, as one who has won himself a great position in regard to the maintenance of all the social amenities of the country, to picture what a horrible prospect there would be if there was a diminution in the supply of cheap floor polish, with all that that means to the happiness, beauty and peace of family life in this country.

The arguments used by the hon. Member opposite are wholly cogent in the case of substances which are in themselves of a key nature, for instance, synthetic camphor. It is very desirable that no difficulties should be placed in the way of the production of adequate supplies of that very essential article. I believe that, if this duty is applied to turpentine, it will place such difficulties in the way of the manufacture of synthetic camphor as to hand over the whole of the manufacture of that article to manufacturers in foreign countries. Every one on the Front Bench knows that turpentine cannot be used in internal combustion engines, and therefore no leakage can take place in that way. The total amount involved by this concession is so small that the Chancellor of the Exchequer will do no real injury to his financial provision for the year by accepting the Amendment which I have put down. It only involves between £80,000 and £90,000, but that small gain to the revenue will most certainly inflict a serious blow to the industries, in the production of the products of which turpentine is so largely employed. I agree with what has been said by the hon. Member opposite as to the safeguarding of industries. The hon. Member for Rochdale is one of those Members who take every opportunity of supporting me in the application of that sound, wholesome, national policy.

For fear of any misunderstanding, I can assure the hon. Member I am opposed to that policy, and particularly in the industry with which I am concerned.

I am sorry the hon. Member does not realise what it means to have one's leg pulled sometimes in this House. I hope he will acquire a little more of that admirable sense of humour with which he so often delights the House of Commons. I very much hope the Financial Secretary will see his way to make the concession suggested. I do not want to upset his Budget by asking him to make a similar concession to white oil, but I do say, in the interest of great and important industries and of a whole series of productive enterprises that depend for their efficiency and competitive power upon turpentine as an element in their production, that this concession should be made, and I earnestly hope he will meet me in my Amendment.

The hon. Members who have raised the general discussion on which we are now embarked have put their case most eloquently, and in some cases with some flashes of humour, notably in the case of the hon. Member for Moseley (Mr. Hannon), who seemed to consider that a copious supply of embrocation was necessary for the amenities of family life, an argument which could only apply to one of his national extraction. The hon. Members, who desired that at this late stage we should make this concession, which would have some far-reaching consequences, have put forward various contentions. There is the contention advanced by the hon. and gallant Member for Hull (Lieut.-Commander Kenworthy), in the case of industries, more particularly the cattle-feeding industry, as to the use of these oils as part of a manufacturing process, in which, however, a great proportion of the oil is recovered. There is also the contention brought forward in regard to white oils, and there has been the contention which was also advanced with considerable force by the hon. Member for Moseley. The hon. Member for Moseley admitted that, on going into the matter, he had been struck by the financial upsets which would take place if the whole of these demands were granted. There is a matter of over £500,000 a year involved in the concessions asked for by the hon. and gallant Member for Hull. That is no small sum, especially when added to the other concessions which the Chancellor of the Exchequer has had to make, particularly in regard to the Kerosene Tax, and to that which we are about to make in the case of fishing boats. It is not possible to add concession to concession without destroying the Budget balance.

The financial argument is not the strongest argument in this respect. The hon. and gallant Member for Hull said: "This was done before; let it be done again." The argument he used is the strongest condemnation of the policy he now asks us to embark upon. We have had an experiment of this kind, we have tested it in practice, we have embarked on the path of rebates and concessions in one form or another, and we have found ourselves involved in such a network of bureaucracy and regulations that the tax was not worth collecting, and had to be abandoned. We do not intend to embark on that policy again. We lay down the simple, fiscal proposal, which was outlined in the Budget speech, and which, with the exception of the remission of the tax on kerosene, still stands as one of the major financial proposals of the Budget of the present year. In the case of employment in the manufacturing industries, there is a case to be met, but it is met by the remission in rating. We have heard argued the proposition put forward by the Opposition that it was folly to give remission to prosperous industries, but now they ask for a remission to an industry which, on its own showing, is a prosperous industry and able to invade the markets of the world.

Does he say that it is not a wise thing to so strengthen a British industry that it can compete in the export markets of the world?

The invasion of export markets will in no way be injured by the tax, because a drawback equal to the whole amount of the duty is given on goods sent out to the export markets of the world. The hon. Member says that the British manufacturer will still be liable to the competition of paints and varnishes imported from overseas. Not at all. We will make sure that goods coming into this country will have a duty imposed upon them and will not compete on unfair terms with those manufactured in this country. [HON. MEMBERS: "A new tax?"] It is not a new tax. The tax on light oils is imposed whether they come in in one form or another.

Can the hon. and gallant Gentleman say if a paint or a varnish, imported into this country from abroad with turpentine in its composition, will have that turpentine taxed?

Yes. Any substance imported into this country containing a taxable substance will be taxed, and therefore unfair competition will not take place. There was a further contention about the unfair burden on the home producer. This does not amount to a penny half-penny in 10s. worth of paint. There is no need to enter into the net-work of officialdom which would be necessary to enforce this remission. On that the Chancellor of the Exchequer is bound to say and has instructed me to say that he cannot make the concession. I hope I have met the main objection of the hon. Member for Moseley by the fact that a substance containing dutiable articles imported from overseas will be subject to a duty. The final word I would say is that, even this Turpentine Duty would amount to a somewhat larger sum than is suggested. We are advised it would be approximately £120,000 a year. That is what the exemption of turps would cost the revenue per annum. That, again, although it is not comparable to the great figures of millions on which many of our Debates take place, is still a very considerable sum.

It is perfectly true what the hon. Member says, and as a matter of fact, the trade themselves put it at £90,000, but does he not see that £90,000 to this trade is an enormous sum, though it is nothing to him?

Nobody came to this House bewailing the sad case of the trades using turps within the months before the duty was imposed, although then the price of turps was much higher than it is now even with the duty. There was no duty on it in January, 1927, when it was 56s. a cwt., as there is now when it is 45s. a cwt. The price in June, 1928, with the tax, was lower than in February and March without the tax. Therefore, it seems obvious that the struggle which they successfully engaged upon in February and March this year against high prices is no insuperable obstacle as far as competition—

I cannot give a guarantee, but I can say that this strife was successfully conducted when the price of the raw material was much higher than it is now, and there is no reason to suppose that it will not be successfully continued when the price is lower as it is to-day.

I appreciate that there is a duty to be imposed upon all hydro-carbon oils, but at the present moment I have not found anything in this Clause which imposes a duty on substances containing hydro-carbon oils. I do notice that in Sub-section (6) relating to drawbacks, there is a provision that:

"A drawback …shall be allowed on the exportation … of any hydro-carbon oils, or of any article in which there is contained any hydro-carbon oil which was used as an ingredient in the manufacture or preparation thereof."

I am sorry the hon. and gallant Gentleman has not been able to meet us at least about turpentine. I can understand the difficulty in the mind of the Treasury about white spirit, but it is obvious that turpentine cannot be used for internal combustion engines, and it is also obvious that the price of turpentine is three times as great as that of white spirit and that it enters into a whole range of manufactured articles. The hon. and gallant Gentleman and the Treasury seem to be under the impression that varnish manufacturers are conducting a very prosperous industry. That is not so. A firm in my constituency write me that the industry is finding the times very difficult, and the difficulties are added to by the imposition of the duty of 4d. a gallon, which is not recoverable and which represents quite a substantial annual loss. They are not under the impression that they are a prosperous industry nor, as the bureaucrats at the Treasury are, that the tax will make very little difference to them. They are quite clear in their own mind that it means a substantial addition to their costs and a substantial added difficulty in the way of keeping their trade. Paint and varnish enter largely into the cost of repairing and cleaning ships, and they also enter into more than one chemical product. Synthetic camphor uses turpentine very largely and is quite a considerable modern key industry, not very large in size but growing.

I can understand the Treasury taking the view they do about white spirit, but I cannot think the hon. and gallant Gentleman's argument is powerful enough with regard to turpentine, and I press upon him, if he cannot meet us on a larger scale with regard to white spirit, that at least he will meet us in regard to turpentine, which will make a very great difference to the manufacturers of paint and varnish and this other range of products. I hope other hon. Members will follow us, because this is a matter of very considerable importance to the industry, although it appears the Treasury does not consider it so.

I should like to add a word or two to the very strong appeals that have been made that the Government should reconsider this question of the relief to be offered to turpentine. In my constituency there is a number of manufacturers of the finest types of varnish. This contemplated imposition of a tax calls for considerable protest from them. For some considerable time they have been passing through difficulties. The varnish that is manufactured at these works in my constituency is of the finest quality, competing not only with foreign varnish in this country, but abroad. It is an unwise step, having regard to the very small amount that is involved, to place a tax upon manufacturers here in their endeavour to compete in foreign markets. If we are going to do anything in this country it is not by taking in our own washing. We want to develop and maintain our markets, and indeed to recover some of the markets we had in pre-War days. Cogent arguments have been addressed to the Government, and I hope, having regard to the very small amount involved, that they will consider that it is desirable to make one more concession rather than have to consider at a later stage what they are going to do to bolster up the varnish industry.

I was not surprised when the Under-Secretary of State for Scotland gave the negative he did in the absence of the 'Chancellor of the Exchequer. Those who take his place cannot very well be expected to make any concession, but I will suggest to those who are looking after the Government case that they should send for him and acquaint him with the fact that it is not only from these benches and from Members below the Gangway that protest is being made, but that from their side of the House there have already been several speeches, and I have no doubt there are many others who feel very strongly with regard to it. I do not see why the Chancellor of the Exchequer should persistently absent himself from our Debates. We all regret very much the illness which kept him away from one considerable stage of our discussions, but I cannot see why the business of the House should not come first and foremost, and on this exceedingly important stage I think he might be here at any rate to listen to the arguments. On the merits of this question, it is pointed out by the Government's spokesman that you cannot pile concession upon concession. That is not an argument against this proposal. It is an argument simply to show that the tax, as it was originally conceived, was a bad tax and one that involved a very large number of injustices which, when they have been exposed, have brought about the concessions required.

Now we have another point, and a very grave point it is. It is that by this tax the Government are delivering a very serious blow at important industries. I am glad the Chancellor has now deigned to honour us with his presence. I should like to inform him that on the question of the tax on turpentine there has been a very large amount of opposition manifested in all parts of the House, and many of his own supporters have risen to complain against the injustice of it. It is no answer to the arguments that this part of the tax is interwoven with other taxes. The duties are unjust and injurious to trade and employment. If the Chancellor of the Exchequer taxes these light oils it is his business, and not ours, to see that they can be put on without detriment to the interests of trade and industry. If he cannot do it, it is not an argument for allowing injustice to continue. It is an argument for removing them and imposing other taxation which is not open to the same objection.

I come to the point that has been made with regard to the competition with articles coming in from abroad. The point has been sprung upon me and I do not wish to dogmatise about it, but what I think is the case is that where a competing article coming from abroad has oil or turpentine in it, it will be subject to the same duty, and that may be to some extent an answer to the objections which have been put from other parts of the House. But the point I want to put to the Government is this. In a great many articles manufactured with turpentine and other oils the turpentine disappears in the process and an entirely new article comes into being. I do not think I could possibly have understood the Under-Secretary for Scotland aright if he suggests that all these other articles are automatically included in the duty although the oil and turpentine have actually disappeared. I do not think that is so at all.

I said a substance would be taxed according to the amount of the dutiable article that it contained, which is a thing which has been part of our law since 1901.

That is exactly what I was saying. Although I think the Under-Secretary did not use words that were technically incorrect, I think a considerable part of the House was misled by his answer, and I was endeavouring to set the point out clearly, so that the House should not be under any misapprehension with regard to it. The point is that there is a serious matter involved in this question, because articles manufactuied in this country from which the oil or turpentine has disappeared and a new article has been created are at a serious disadvantage compared with similar articles coming in from abroad, on which no duty is imposed. I appeal to the Chancellor of the Exchequer, in face of the very strong protests which have been made from all parts of the House, to reconsider his adverse decision and to come to a decision that in the interests of trade and employment he cannot continue the refusal which up to now he has given.

I should like to add one more appeal from this side of the House to the Chancellor of the Exchequer to reconsider his refusal to grant this concession. I am not referring to the two other Amendments which I understand were also discussed relating to the seed crushing industry, on which I have already expressed my views. I realise that the concession on petrol or light oils might be difficult for the Chancellor to make without jeopardising the Petrol Duty. On this point of turpentine the case has been put very cogently from both sides of the House. I should like to put one further point. I wonder if the Financial Secretary has made any calculations as to how the paint and varnish industry is going to be affected by the rating proposals of the Government.

I am informed by a number of firms in my constituency that the relief which they calculate they will get will be about half of what the additional cost of this tax will be to them. Here we have an industry—by no means a flourishing industry, but one which is going through great difficulties—which will be about 50 per cent. worse off instead of being better off. I would be prepared to agree to the suffering of a few firms in order to ensure real benefit being reaped by the whole of the rest of the country, but I cannot see that in this matter of turpentine that it is necessary to include turpentine in the tax. Surely it is quite agreed by now that turpentine cannot be used in motor cars, and surely it is also agreed that it would be quite easy to differentiate this substance from other oils which come into this country. Because it would be for the Chancellor of the Exchequer a comparatively light concession, and because it is for the firms concerned such a heavy burden, I hope my right hon. Friend will reconsider the position.

I should like to add my word of pleading to the Chancellor of the Exchequer to grant us this freedom to turpentine. In a district like Central Bradford it will cost the manufacturers there £80,000 to £90,000, and, perhaps, £100,000, a year. If we are going to free certain trades which are badly hit, surely this is not a very big concession to ask.

How does my hon. Friend propose to tax imported paints? How does he propose to impose the tax upon the manufactured paint which embodies turpentine?

Of what cases is my hon. Friend the Member for Moseley (Mr. Hannon) thinking? Of what kind of paint and varnish is he thinking in which turpentine disappears before it is imported into this country? I think that the point made by the hon. Gentleman opposite is much more connected with manufactured articles in which turpentine is an original basis. In the case of varnishes we come to quite another class of substance.

In point of fact, have the Customs made any arrangements whereby imported paints can be taxed?

Perhaps I may be permitted to refer to this subject by quoting a letter from one who is associated with this business and therefore speaks, as few of us can, first hand. He says:

"The arguments in favour of this"—

that is, the abolition of the tax on turpentine—

"are that the importation figures are falling, indicating that less turpentine is being used, and that the amount of revenue that would be lost if turpentine were exempt would be only one-fifth of the amount that would be lost if white spirit were exempt, and only one 250th part of the Petrol Tax. This loss would hardly affect the revenue to be derived from the duty, but it would, to some extent, relieve the burden on the varnish manufacturer. To show how serious this burden is, I may say that it has been calculated that, in many cases, the extra amount paid in duty will be four times as much as the relief in respect of rates, and, in some cases, very much higher. It is, no doubt, legitimate to pass on the duty to the consumer, but, in the vast majority of cases in our trade, it is not practicable. This seems to be a reasonable minor concession that could be made without complicating the situation, as turpentine is a product entirely separate and distinct from white spirit, being the distillation product of exudations from the pine tree, chiefly in the United States of America."

I venture to submit that this is direct first-hand information which I sincerely trust may have some influence upon the Minister.

Question put, " That those words be there inserted in the Bill."

The House divided: Ayes, 122; Noes, 235.

Division No. 314.]

AYES.

[7.36 p.m.

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

Griffith, F. Kingsley

Maclean, Neil (Glasgow, Govan)

Alexander, A. V (Sheffield, Hillsbro')

Griffiths, T. (Monmouth, Pontypool)

Malone, C. L'Estrange (N'thampton)

Attlee, Clement Richard

Groves, T.

March, S.

Baker, J. (Wolverhampton, Bilston)

Grundy, T. W.

Maxton, James

Baker, Walter

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

Montague, Frederick

Bondfield, Margaret

Hall, G. H. (Merthyr Tydvil)

Morris, R. H.

Briant, Frank

Hardie, George D.

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

Bromfield, William

Harney, E. A.

Owen, Major G.

Bromley, J.

Hartshorn, Rt Hon. Vernon

Parkinson, John Allen (Wigan)

Brown, Ernest (Leith)

Hayday, Arthur

Pethick-Lawrence, F. W.

Brown, James (Ayr and Bute)

Hayes, John Henry

Ponsonby, Arthur

Cape, Thomas

Henderson, Rt. Hon. A. (Burnley)

Potts, John S.

Charleton, H. C.

Henderson, T. (Glasgow)

Purcell, A. A.

Cluse, W. S.

Hirst, G. H.

Richardson, R. (Houghton-le-Spring)

Clynes, Rt. Hon. John R.

Hirst, W. (Bradford, South)

Riley, Ben

Connolly, M.

Hore-Belisha, Leslie

Roberts, Rt. Hon. F. O.(W.Bromwich)

Cove, W. G.

Hudson, J. H. (Huddersfield)

Runciman, Hilda (Cornwall, St. Ives)

Cowan, D. M. (Scottish Universities)

Hutchison, Sir Robert (Montrose)

Saklatvala, Shapurji

Dalton, Hugh

John, William (Rhondda, West)

Scurr, John

Davies, Ellis (Denbigh, Denbigh)

Jones, Henry Haydn (Merioneth)

Sexton, James

Davies, Rhys John (Westhoughton)

Jones, Morgan (Caerphilly)

Shaw, Rt. Hon. Thomas (Preston)

Dennison, R.

Kelly, W. T.

Shepherd, Arthur Lewis

Duncan, C.

Kennedy, T.

Shiels, Dr. Drummond

Dunnico, H.

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

Sinclair, Major Sir A. (Caithness)

Edge, Sir William

Lansbury, George

Sitch, Charles H.

Edwards, C. (Monmouth, Bedwellty)

Lawrence, Susan

Slesser, Sir Henry H.

Gardner, J. P.

Lawson, John James

Smith, Ben (Bermondsey, Rotherhithe)

Garro-Jones, Captain G. M.

Lindley, F. W.

Smith, H. B. Lees (Keighley)

Gillett, George M.

Livingstone, A. M.

Smith, Rennie (Penistone)

Gosling, Harry

Longbottom, A. W.

Snell, Harry

Graham, Rt. Hon. Wm. (Edin., Cent.)

Lowth, T.

Snowden, Rt. Hon. Philip

Greenall, T.

Lunn, William

Stamford, T. W.

Greenwood, A. (Nelson and Colne)

MacDonald, Rt. Hon. J. R. (Aberavon)

Stephen, Campbell

Grenfell, D. R. (Giamorgan)

Mackinder, W.

Stewart, J. (St. Roliox)

Strauss, E. A.

Varley, Frank B.

Williams, Dr. J. H. (Lianelly)

Sutton, J. E.

Viant, S. P.

Wilson, R. J. (Jarrow)

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

Walsh, Rt. Hon. Stephen

Wright, W.

Thorne, W. (West Ham, Plaistow)

Watson, W. M. (Dunfermline)

Young, Robert (Lancaster, Newton)

Thertle, Ernest

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

Tinker, John Joseph

Wedgwood, Rt. Hon. Josiah

TELLERS FOR THE AYES.—

Tomlinson, R. P.

Wellock, Wilfred

Mr. A. Barnes and Mr. Whiteley.

Townend, A. E.

Williams, C. P. (Denbigh, Wrexham)

NOES.

Acland-Troyte, Lieut.-Colonel

Fairfax, Captain J. G.

Marriott, Sir J. A. R.

Agg-Gardner, Rt. Hon. Sir James T.

Falle, Sir Bertram G.

Meller, R. J.

Albery, Irving James

Fermoy, Lord

Merriman, Sir F. Boyd

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

Fielden, E. B.

Meyer, Sir Frank

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Ford, Sir P. J.

Milne, J. S. Wardlaw-

Atholl, Duchess of

Forrest, W.

Mitchell, W. Foot (Saffron Walden)

Balfour, George (Hampstead)

Fremantle, Lt.-Col. Francis E.

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

Balniel, Lord

Gadie, Lieut.-Col. Anthony

Moore, Lieut.-Colonel T. C. R.(Ayr)

Banks, Sir Reginald Mitchell

Galbraith, J. F. W.

Moore, Sir Newton J.

Barclay-Harvey, C. M.

Ganzoni, Sir John

Morrison, H. (Wilts, Salisbury)

Barnett, Major Sir Richard

Gates, Percy

Nall, Colonel Sir Joseph

Beckett, Sir Gervase (Leeds, N.)

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

Nelson, Sir Frank

Bellairs, Commander Carlyon

Grace, John

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

Bennett, A. J.

Grant, Sir J. A.

Newton, Sir D. G. C. (Cambridge)

Bentinck, Lord Henry Cavendish-

Grattan-Doyle, Sir N.

Nicholson, Col.Rt. Hn.W. G. (Ptrsf'ld.)

Betterten, Henry B.

Greaves-Lord, Sir Walter

Nuttall, Ellis

Bevan, S. J.

Greene, W. P. Crawford

Oakley, T.

Birchall, Major J. Dearman

Grenfell, Edward C. (City of London)

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

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

Gretton, Colonel Rt. Hon. John

Percy, Lord Eustace (Hastings)

Blundell, F. N.

Grotrian, H. Brent

Perkins, Colonel E. K.

Boothby, R. J. G.

Gunston, Captain D. W.

Peto, Sir Basil E. (Devon, Barnstaple)

Bourne, Captain Robert Croft

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

Peto, G. (Somerset, Frome)

Bowyer, Captain G. E. W.

Hammersley, S. S.

Pilcher, G.

Brooke, Brigadier-General C. R. I.

Hanbury, C.

Pilditch, Sir Philip

Broun-Lindsay, Major H.

Hannon, Patrick Joseph Henry

Pownall, Sir Assheton

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

Harland, A.

Price, Major C. W. M.

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

Hartington, Marquess of

Raine, Sir Walter

Buckingham, Sir H.

Harvey, Major S. E. (Devon, Totnes)

Ramsden, E.

Burgoyne, Lieut.-Colonel Sir Alan

Haslam, Henry C.

Reid, D. D. (County Down)

Burman, J. B.

Headlam, Lieut.-Colonel C. M.

Remer, J. R.

Burney, Lieut.-Com. Charles D.

Henderson, Lieut.-Col. Sir Vivian

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Burton, Colonel H. W.

Heneage, Lieut.-Colonel Arthur P.

Roberts, E. H. G. (Flint)

Butler, Sir Geoffrey

Henn, Sir Sydney H.

Roberts, Sir Samuel (Hereford)

Butt, Sir Alfred

Hennessy, Major Sir G. R. J.

Robinson, Sir T. (Lancs., Stretford)

Cadogan, Major Hon. Edward

Hills, Major John Walier

Ruggles-Brise, Lieut.-Colonel E. A.

Campbell, E. T.

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

Rye, F. G.

Carver, Major W. H.

Holbrook, Sir Arthur Richard

Samuel, A. M. (Surrey, Farnham)

Cayzer, Sir C. (Chester. City)

Hope, Capt. A. O. J. (Warw'k, Nun.)

Sandeman, N. Stewart

Cayzer, Maj. Sir Herbt. R.(Prtsmth.S.)

Hope, Sir Harry (Forfar)

Sanders, Sir Robert A.

Cazalet, Captain Victor A.

Hopkins, J. W. W.

Savery, S. S.

Cecil, Rt. Hon. Sir Evelyn (Aston)

Hudson, Capt. A. U. M. (Hackney, N.)

Sheffield, Sir Berkeley

Chadwick, Sir Robert Burton

Hudson, R. S. (Cumberl'nd, Whiteh'n)

Shepperson, E. W.

Charteris, Brigadier-General J.

Hume, Sir G. H.

Simms, Dr. John M. (Co. Down)

Christie, J. A.

Hume-Williams, Sir W. Ellis

Skelton, A. N.

Churchill, Rt. Hon. Winston Spencer

Hunter-Weston, Lt.-Gen. Sir Aylmer

Smith, Louis W. (Sheffield, Hallam)

Churchman, Sir Arthur C.

Hurd, Percy A.

Smith-Carington, Neville W.

Cobb, Sir Cyril

Iliffe, Sir Edward M.

Smithers, Waldron

Cochrane, Commander Hon. A. D.

Inskip, Sir Thomas Walker H.

Somerville, A. A. (Windsor)

Cockerill, Brig.-General Sir George

Iveagh, Countess of

Southby, Commander A. R. J.

Cohen, Major J. Brunel

Jackson, Sir H. (Wandsworth. Cen'l)

Spender-Clay, Colonel H.

Cooper, A. Duff

James, Lieut.-Colonel Hon. Cuthbert

Stanley, Lieut.-Colonel Rt. Hon. G. F.

Courtauld, Major J. S.

Jephcott, A. R.

Stanley, Lord (Fylde)

Courthope, Colonel Sir G. L.

Kennedy, A. R. (Preston)

Stanley, Hon. O. F. G. (Westm'eland)

Cowan, Sir Wm. Henry (Islingtn., N.)

Kindersley, Major Guy M.

Steel, Major Samuel Strang

Craig, Sir Ernest (Chester, Crewe)

King, Commodore Henry Douglas

Storry-Deans, R.

Croft, Brigadier-General Sir H.

Knox, Sir Alfred

Stuart, Hon. J. (Moray and Nairn)

Crooke, J. Smedley (Deritend)

Lamb, J. Q.

Sueter, Rear-Admiral Murray Fraser

Crookshank.Cpt.H.(Lindsey, Gainsbro)

Lane Fox, Col. Rt. Hon. George R.

Tasker, R. Inigo.

Cunliffe, Sir Herbert

Lister, Cunliffe, Rt. Hon. Sir Philip

Templeton, W. P.

Curzon, Captain Viscount

Long, Major Eric

Thom, Lt.-Col. J. G. (Dumbarton)

Dalkeith, Earl of

Lougher, Lewis

Thomson, Rt. Hon. Sir W. Mitchell-

Davidson, Major-General Sir J. H.

Lucas-Tooth, Sir Hugh Vere

Tinne, J. A.

Davies, Maj. Geo. F.(Somerset, Yeovil)

Lynn, Sir R. J.

Titchfield, Major the Marquess of

Davies, Dr. Vernon

MacAndrew, Major Charles Glen

Tryon, Rt. Hon. George Clement

Dawson, Sir Philip

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

Turton, Sir Edmund Russborough

Dean, Arthur Wellesley

Macdonald, R. (Glasgow, Cathcart)

Wallace, Captain D. E.

Drewe, C.

McLean, Major A.

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

Edmondson. Major A. J.

Macnaghten, Hon. Sir Malcolm

Warrender, Sir Victor

Elliot, Major Walter E.

Macquisten, F. A.

Watson, Rt. Hon. W. (Carlisle)

Ellis, R. G.

Maitland, A. (Kent, Faversham)

Watts, Sir Thomas

Erskine, Lord (Somerset, Weston-s-M.)

Makins, Brigadier-General E.

Wayland, Sir William A.

Evans, Captain A. (Cardiff, South)

Manningham-Buller, Sir Mervyn

Wells, S. R.

Everard, W. Lindsay

Margesson, Captain D.

White, Lieut.-Col. Sir G. Dairymple-

Williams, A. M. (Cornwall, Northern)

Windsor-Clive, Lieut.-Colonel George

Wood, Rt. Hon. Sir Kingsley

Williams, Com. C. (Devon, Torquay)

Winterton, Rt. Hon. Earl

Woodcock, Colonel H. C.

Williams, Herbert G. (Reading)

Withers, John James

Worthington-Evans, Rt. Hon. Sir L.

Wilson, Sir C. H. (Leeds, Central)

Wolmer, Viscount

Yerburgh, Major Robert D. T.

Wilson, R. R. (Stafford, Lichfield)

Womersley, W. J.

Winby, Colonel L. P.

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

TELLERS FOR THE NOES.—

Major Sir W. Cope and Mr. Penny.

I beg to move, in page 2, line 21, after the second word "oils," to insert the words "other than turpentine and white spirit."

I leg to second the Amendment.

Question put, "That those words be there inserted in the Bill."

The House divided: Ayes, 127; Noes, 234.

Division No. 315.]

AYES.

[7.45 p.m.

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

Hardie, George D.

Richardson, R. (Houghton-le-Spring)

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

Harney, E. A.

Riley, Ben

Attlee, Clement Richard

Harris, Percy A.

Roberts, Rt. Hon. F. O.(W. Bromwich)

Baker, J. (Wolverhampton, Bilston)

Hartshorn, Rt. Hon. Vernon

Runciman, Hilda (Cornwall, St. Ives)

Baker, Walter

Hayday, Arthur

Saklatvala, Shapurji

Batey, Joseph

Hayes, John Henry

Scurr, John

Bondfield, Margaret

Henderson, Rt. Hon. A. (Burnley)

Sexton, James

Briant, Frank

Henderson, T. (Glasgow)

Shaw, Rt. Hon. Thomas (Preston)

Bromfield, William

Hirst, G. H.

Shepherd, Arthur Lewis

Bromley, J.

Hirst, W. (Bradford, South)

Shiels, Dr. Drummond

Brown, Ernest (Leith)

Hore-Belisha, Leslie

Sinclair, Major Sir A. (Caithness)

Brown, James (Ayr and Bute)

Hudson, J. H. (Huddersfield)

Sitch, Charles H.

Buxton, Rt. Hon. Noel

Hutchison, Sir Robert (Montrose)

Slesser, Sir Henry H.

Cape, Thomas

John, William (Rhondda, West)

Smith, Ben (Bermondsey, Rotherhithe)

Charleton, H. C.

Jones, Henry Haydn (Merioneth)

Smith, H. B. Lees (Keighley)

Cluse, W. S.

Jones, Morgan (Caerphilly)

Smith, Bennie (Penistone)

Clynes, Right Hon. John R.

Kelly, W. T.

Snell, Harry

Connolly, M.

Kennedy, T.

Snowden, Rt. Hon. Philip

Cove, W. G.

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

Stamford, T. W.

Cowan, D. M. (Scottish Universities)

Lansbury, George

Stephen, Campbell

Dalton, Hugh

Lawrence, Susan

Stewart, J. (St. Rollox)

Davies, Ellis (Denbigh, Denbigh)

Lawson, John James

Strauss, E. A.

Davies, Rhys John (Westhoughton)

Lindley, F. W.

Sutton, J. E.

Dennison, R.

Livingstone, A. M.

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

Duncan, C.

Longbottom, A. W.

Thorne, W. (West Ham, Plaistow)

Dunnico, H.

Lowth, T.

Thurtle, Ernest

Edge, Sir William

Lunn, William

Tinker, John Joseph

Edwards, C. (Monmouth, Bedwelity)

MacDonald, Rt. Hon.J. R.(Aberavon)

Tomlinson, R. P.

Fenby, T. D.

Mackinder, W.

Townend, A. E.

Gardner, J. P.

Maclean, Nell (Glasgow, Govan)

Variey, Frank B.

Garro-Jones, Captain G. M.

Malone, C. L'Estrange (N'thampton)

Viant, S. P.

Gillett, George M.

March, S.

Walsh, Rt. Hon. Stephen

Gosling, Harry

Maxton, James

Watson, W. M. (Dunfermilne)

Graham, Rt. Hon. Wm. (Edln., Cent.)

Mitchell, Sir W. Lane (Streatham)

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

Greenall, T.

Montague, Frederick

Wedgwood, Rt. Hon. Josiah

Greenwood, A. (Nelson and Colne)

Morris, R. H.

Wellock, Wilfred

Grenfell, D. R. (Glamorgan)

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

Williams, C. P. (Denbigh, Wrexham)

Griffith, F. Kingsley

Owen, Major G.

Williams, Dr. J. H. (Llanelly)

Griffiths, T. (Monmouth. Pontypool)

Parkinson, John Allen (Wigan)

Wilson, R. J. (Jarrow)

Groves, T.

Pethick-Lawrence, F. W.

Wright, W.

Grundy, T. W.

Ponsonby, Arthur

Young, Robert (Lancaster, Newton)

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

Potts, John S.

Hall, G. H. (Merthyr Tydvil)

Purcell, A. A.

TELLERS FOR THE AYES—

Mr. A. Barnes and Mr. Whiteley.

NOES.

Acland-Troyte, Lieut.-Colonel

Bevan, S. J.

Burton, Colonel H. W.

Agg-Gardner, Rt. Hon. Sir James T.

Birchall, Major J. Dearman

Butler, Sir Geoffrey

Albery, Irving James

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

Butt, Sir Alfred

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Blundell, F. N.

Cadogan, Major Hon. Edward

Atholl, Duchess of

Boothby, R. J. G.

Campbell, E. T.

Balfour, George (Hampstead)

Bourne, Captain Robert Croft

Cayzer, Sir C. (Chester, City)

Balniel, Lord

Bowyer, Captain G. E. W.

Cayzer, Maj. Sir Herbt.R.(Prtsmth. S.)

Banks, Sir Reginald Mitchell

Brooke, Brigadier-General C. R. I.

Cazalet, Captain Victor A.

Barclay-Harvey, C. M

Broun-Lindsay, Major H.

Cecil, Rt. Hon. Sir Evelyn (Aston)

Barnett, Major Sir Richard

Brown, Col. D. C. (N'th'I'd., Hexham)

Chadwick, Sir Robert Burton

Beckett, Sir Gervase (Leeds, N.)

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

Chapman, Sir S.

Bellairs, Commander Carlyon

Buckingham, Sir H.

Charteris, Brigadier-General J.

Bennett, A. J.

Burgoyne, Lieut.-Colonel Sir Alan

Christie, J. A.

Bentinck, Lord Henry Cavendish

Burman, J. B.

Churchill, Rt. Hon. Winston Spencer

Betterton, Henry B.

Burney, Lieut.-Com. Charles D.

Churchman, Sir Arthur C.

Cobb, Sir Cyril

Hope, Capt. A. O. J. (Warw'k, Nun.)

Reid, D. D. (County Down)

Cochrane, Commander Hon. A. D.

Hope, Sir Harry (Forfar)

Remer, J. R.

Cockerill, Brig.-General Sir George

Hopkins, J. W. W.

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Cohen, Major J. Brunel

Horlick, Lieut.-Colonel J. N.

Roberts, E. H. G. (Flint)

Cooper, A. Duff

Hudson, Capt. A. U. M. (Hackney, N.)

Roberts, Sir Samuel (Hereford)

Cope, Major Sir William

Hudson, R. S. (Cumberland, Whiteh'n)

Robinson, Sir T. (Lancs., Stretford)

Cooper, J. B.

Hume, Sir G. H.

Ruggles-Brise, Lieut.-Colonel E. A.

Courtauld, Major J. S.

Hume-Williams, Sir W. Ellis

Rye, F. G.

Courthope, Colonel Sir G. L.

Hunter Weston, Lt.-Gen. Sir Aylmer

Samuel, A. M. (Surrey, Farnham)

Cowan, Sir Wm. Henry (Islington, N.)

Hurd, Percy A.

Sandeman, N. Stewart

Craig, Sir Ernest (Chester, Crewe)

Iliffe, Sir Edward M.

Sanders, Sir Robert A.

Croft, Brigadier-General Sir H.

Inskip, Sir Thomas Walker H.

Savery, S. S.

Crooke, J. Smedley (Deritend)

Iveagh, Countess of

Shaw, R. G. (Yorks, W.R., Sowerby)

Crookshank, Cpt.H.(Lindsey, Gainsbro)

Jackson, Sir H. (Wandsworth, Cen'I)

Sheffield, Sir Berkeley

Cunliffe, Sir Herbert

James, Lieut.-Colonel Hon. Cuthbert

Shepperson, E. W.

Curzon, Captain Viscount

Jephcott, A. R.

Simms, Dr. John M. (Co. Down)

Dalkeith, Earl of

Kennedy, A. R. (Preston)

Skelton, A. N.

Davidson, Major-General Sir J. H.

Kindersiey, Major G. M.

Smith, Louis W. (Sheffield, Hallam)

Davies, Maj. Geo.F.(Somerset, Yeovil)

King, Commodore Henry Douglas

Smith-Carington, Neville W.

Davies, Dr. Vernon

Knox, Sir Alfred

Smithers, Waldron

Dawson, Sir Philip

Lamb, J. Q.

Somerville, A. A. (Windsor)

Dean, Arthur Wellesley

Lane Fox, Col. Rt. Hon. George R.

Southby, Commander A. R. J.

Drewe, C.

Lister, Cunliffe-, Rt. Hon. Sir Philip

Spender-Clay, Colonel H.

Edmondson, Major A. J.

Long, Major Eric

Stanley, Lieut.-Colonel Rt. Hon. G. F.

Elliot, Major Walter E.

Lougher, Lewis

Stanley, Lord (Fylde)

Ellis, R. G.

Lucas-Tooth, Sir Hugh Vere

Stanley, Hon. O. F. G. (Westm'eland)

Evans, Captain A. (Cardiff. South)

Lynn, Sir R. J.

Steel, Major Samuel Strang

Everard, W. Lindsay

MacAndrew, Major Charles Glen

Storry-Deans, R.

Fairfax, Captain J. G.

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

Stuart, Hon. J. (Moray and Nairn)

False, Sir Bertram G.

Macdonald, R. (Glasgow, Cathcart)

Sueter, Rear-Admiral Murray, Fraser

Fermoy, Lord

McLean, Major A.

Tasker, R. Inigo.

Flelden, E. B.

Macmillan, Captain H.

Templeton, W. P.

Ford, Sir P. J.

Macnaghten, Hon. Sir Malcolm

Thom, Lt.-Col. J. G. (Dumbarton)

Forestier-Walker, Sir L.

Macquisten, F. A.

Thomsen, Rt. Hon. Sir W. Mitchell-

Forrest, W.

Maitland, A. (Kent, Faversham)

Tinne, J. A.

Fremantle, Lt.-Col. Francis E.

Makins, Brigadier-General E.

Titchfield, Major the Marquess of

Gadle, Lieut.-Col. Anthony

Margesson, Captain D.

Tryon, Rt. Hon. George Clement

Galbraith, J. F. W.

Marriott, Sir J. A. R.

Turton, Sir Edmund Russborough

Ganzonl, Sir John

Meller, R. J.

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

Gates, Percy

Merriman, Sir F. Boyd

Warner, Brigadier-General W. W

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

Meyer, Sir Frank

Warrender, Sir Victor

Grace, John

Milne, J. S. Wardlaw-

Watson, Rt. Hon. W. (Carlisle)

Grant, Sir J. A.

Mitchell, W. Foot (Saffron Walden)

Watts, Sir Thomas

Grattan-Doyle, Sir N.

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

Wayland, Sir William A.

Greaves-Lord, Sir Walter

Moore, Lieut.-Colonel T. C. R. (Ayr)

Wells, S. R.

Greene, W. P. Crawford

Moore. Sir Newton J.

White, Lieut.-Col Sir G. Dairymple

Grenfell, Edward C. (City of London)

Morrison, H. (Wilts, Salisbury)

Williams, A. M. (Cornwall, Northern)

Gretton, Colonel Rt. Hon. John

Nall, Colonel Sir Joseph

Williams, Com. C. (Devon, Torquay)

Gunston, Captain D. W.

Nelson, Sir Frank

Williams, Herbert G. (Reading)

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

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

Wilson, Sir C. H. (Leeds, Central)

Hammersley, S. S.

Newton, Sir D. G. C. (Cambridge)

Wilson, R. R. (Stafford, Lichfield)

Hanbury, C.

Nicholson, Col. Rt. Hn.W.G.(Ptrsf'ld.)

Winby, Colonel L. P.

Harland, A

Oakley, T.

Windsor-Clive, Lieut.-Colonel George

Hartington, Marquess of

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

Winterton, Rt. Hon. Earl

Harvey, Major S. E. (Devon, Totnes)

Percy, Lord Eustace (Hastings)

Withers, John James

Haslam, Henry C.

Perkins, Colonel E. K.

Wolmer, Viscount

Headlam, Lieut.-Colonel C. M.

Peto, Sir Basil E. (Devon, Barnstaple)

Womersley, W. J.

Henderson, Lieut.-Col. Sir Vivian

Peto, G. (Somerset, Frome)

Wood, Rt. Hon. Sir Kingsley

Heneage, Lieut.-Colonel Arthur P.

Pilcher, G.

Woodcock, Colonel H. C.

Henn, Sir Sydney H.

Pilditch, Sir Philip

Worthington-Evans, Rt. Hon. Sir L.

Hennessy, Major Sir G. R. J.

Pownall, Sir Assheton

Yerburgh, Major Robert D. T.

Hills, Major John Waller

Price, Major C. W. M.

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

Raine, Sir Waiter

TELLERS FOR THE NOES.—

Holbrook, Sir Arthur Richard

Ramsden, E.

Mr. Penny and Captain Wallace.

I beg to move, in page 2, line 29, at the end, to insert the words, "but it shall not include turpentine."

Will the Chancellor of the Exchequer be kind enough to tell the House how he proposes to provide the machinery that will determine the percentage of turpentine in a particular consignment of varnish coming into this country? If he can explain that, I will withdraw my Amendment.

Cannot we have a reply from the Chancellor of the Exchequer?

Question put, "That those words be there inserted in the Bill."

The House divided: Ayes, 132; Noes, 225.

Division No. 316.]

AYES.

[7.54 p.m.

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

Hardie, George D.

Potts, John S.

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

Harney, E. A.

Purcell, A. A.

Attlee, Clement Richard

Harris, Percy A.

Richardson, R. (Houghton-le-Spring)

Baker, J. (Wolverhampton, Bliston)

Hartshorn, Rt. Hon. Vernon

Riley, Ben

Baker, Walter

Heyday, Arthur

Roberts, Frederick O. (W. Bromwich)

Barnes, A.

Hayes, John Henry

Runciman, Hilda (Cornwall, St. Ives)

Batey, Joseph

Henderson, Right Hon. A. (Burnley)

Saklatvala, Shapurji

Bondfield, Margaret

Henderson, T. (Glasgow)

Scurr, John

Briant, Frank

Hirst, G. H.

Shaw, Rt. Hon. Thomas (Preston)

Bromfield, William

Hirst, W. (Bradford, South)

Shepherd, Arthur Lewis

Bromley, J.

Hore-Belisha, Leslie

Shiels, Dr. Drummond

Brown, James (Ayr and Bute)

Hudson, J. H. (Huddersfield)

Sinclair, Major Sir A. (Caithness)

Buxton, Rt. Hon. Noel

Jephcott, A. R.

Sitch, Charles H.

Cape, Thomas

John, William (Rhondda, West)

Slesser, Sir Henry H.

Carver, Major W. H.

Jones, Henry Haydn (Merioneth)

Smith, Ben (Bermondsey, Rotherhithe)

Charleton, H. C.

Jones, Morgan (Caerphilly)

Smith, H. B. Lees (Keighley)

Cluse, W. S.

Kelly, W. T.

Smith, Rennie (Penistone)

Clynes, Rt. Hon. John R.

Kennedy, A. R. (Preston)

Snell, Harry

Connolly, M.

Kennedy, T.

Snowden, Rt. Hon. Philip

Cove, W. G.

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

Stamford, T. W.

Cowan, D. M. (Scottish Universitie

Lansbury, George

Stephen, Campbell

Dalton, Hugh

Lawrence, Susan

Stewart, J. (St. Rollox)

Davies, Ellis (Denbigh, Denbigh)

Lawson, John James

Sutton, J. E.

Davies, Rhys John (Westhoughton)

Lindley, F. W.

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

Dennison, R.

Livingstone, A. M

Thorne, W. (West Ham, Plaistow)

Duncan, C.

Longbottom, A. W.

Thurtle, Ernest

Dunnico, H.

Lowth, T.

Tinker, John Joseph

Edge, Sir William

Lumley, L. R.

Tomlinson, R. P.

Edwards, C (Monmouth, Bedwellty)

Lunn, William

Townend, A. E.

Fenby, T. D.

MacDonald, Rt. Hon. J. R.(Aberavon)

Varley, Frank B.

Gadle, Lieut.-Col. Anthony

Mackinder, W.

Viant, S. P.

Gardner, J. P.

Maclean, Nell (Glasgow, Govan)

Walsh, Rt. Hon. Stephen

Gillett, George M.

Malone, C. L'Estrange (N'thampton)

Watson, W. M. (Dunfermline)

Gosling, Harry

March, S.

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

Graham, Rt. Hon. Wm. (Edin.. Cent.)

Maxton, James

Wedgwood, Rt. Hon. Josiah

Grattan-Doyle, Sir N.

Meller, R. J.

Wellock, Wilfred

Greenall, T.

Mitchell, Sir W. Lane (Streatham)

Whiteley, W.

Grenfell, D. R. (Glamorgan)

Montague, Frederick

Williams, C. P. (Denbigh, Wrexham)

Griffith, F. Kingsley

Morris, R. H.

Williams, Dr J. H (Lianelly)

Griffiths, T. (Monmouth, Pontypool)

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

Wilson, R. J. (Jarrow)

Grotrian, H. Brent

Murnin, H.

Wright, W.

Groves, T.

Owen, Major G.

Young, Robert (Lancaster, Newton)

Grundy, T. W.

Parkinson, John Allen (Wigan)

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

Pethick-Lawrence, F. W.

TELLERS FOR THE AYES.—

Hall, G. H. (Merthyr Tydvil)

Ponsonby, Arthur

Mr. Hannon and Mr. Ernest Brown.

NOES.

Acland-Troyte, Lieut.-Colonel

Campbell, E. T.

Dixey, A. C.

Agg-Gardner, Rt. Hon. Sir James T.

Cayzer, Sir C. (Chester, City)

Drewe, C.

Albery, Irving James

Cayzer, Maj.Sir Herbt. R. (Prtsmth, S.)

Edmondson, Major A. J.

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Cazalet, Captain Victor A.

Elliot, Major Walter E.

Atholi, Duchess of

Cecil, Rt. Hon. Sir Evelyn (Aston)

Ellis, R. G.

Balfour, George (Hampstead)

Chadwick, Sir Robert Burton

Evans, Captain A. (Cardiff, South)

Balniel, Lord

Chapman, Sir S.

Everard, W. Lindsay

Banks, Sir Reginald Mitchell

Charteris, Brigadier-General J.

Fairfax, Captain J. G.

Barclay-Harvey, C. M.

Churchill, Rt. Hon. Winston Spencer

Falle, Sir Bertram G.

Barnett, Major Sir Richard

Churchman, Sir Arthur C.

Fermoy, Lord

Beckett, Sir Gervase (Leeds, N.)

Cobb, Sir Cyril

Fielden, E. B.

Beilairs, Commander Carlyon

Cochrane, Commander Hon. A. D.

Ford, Sir P. J.

Bennett, A. J.

Cockerill, Brig.-General Sir George

Forestler-Walker, Sir L.

Bentinck, Lord Henry Cavendish-

Cohen, Major J. Brunel

Forrest, W.

Betterton, Henry B.

Colfox, Major Wm. Philip

Fremantle, Lieut.-Colonel Francis E.

Bevan, S. J.

Cooper, A. Duff

Galbraith, J. F. W.

Birchall, Major J. Dearman

Cope, Major Sir William

Ganzonl Sir John

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

Couper, J. B.

Gates, Percy

Blundell, F. N.

Courtauld, Major J. S

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

Boothby, R. J. G.

Courthope, Colonel Sir G. L.

Grace, John

Bourne, Captain Robert Croft

Cowan, Sir Wm. Henry (Islingtn., N.)

Grant, Sir J. A

Bowyer, Captain G. E. W.

Craig, Sir Ernest (Chester, Crewe)

Greene, W. P. Crawford

Brooke, Brigadier-General C. R. I.

Croft, Brigadier-General Sir H.

Grenfell, Edward C. (City of London)

Broun-Lindsay, Major H.

Crooke, J. Smedley (Deritend)

Gunston, Captain D. W.

Brown, Col. D. C. (N'th'I'd., Hexham)

Crookshank, Cpt. H. (Lindsey, Gainsbro)

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

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

Cunliffe, Sir Herbert

Hammersley, S. S.

Burgoyne, Lieut.-Colonel Sir Alan

Curzon, Captain Viscount

Hanbury, C.

Burman, J. B.

Dalkeith, Earl of

Harland, A.

Burney, Lieut.-Com. Charles D.

Davidson, Major-General Sir J. H.

Hartington, Marquess of

Burton, Colonel H. W.

Davies, Maj. Geo. F.(Somerset, Yeovil)

Harvey, Major S. E. (Devon, Totnes)

Butler, Sir Geoffrey

Davies, Dr. Vernon

Haslam, Henry C.

Butt, Sir Alfred

Dawson, Sir Philip

Headiam, Lieut.-Colonel C. M.

Cadogan, Major Hon. Edward

Dean, Arthur Wellesley

Henderson, Lieut.-Col. Sir Vivian

Heneage, Lieut.-Col. Arthur P.

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

Southby, Commander A. R. J.

Henn, Sir Sydney H.

Moore, Lieut.-Colonel T. C. R. (Ayr)

Spender-Clay, Colonel H.

Hills, Major John Waller

Moore Sir Newton J.

Stanley, Lieut.-Colonel Rt. Hon. G. F.

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

Morrison, H. (Wilts, Salisbury)

Stanley, Lord (Fylde)

Holbrook, Sir Arthur Richard

Nall, Colonel Sir Joseph

Stanley, Hon. O. F. G. (Westm'eland)

Hope, Capt. A. O. J. (Warw'k, Nun.)

Nelson, Sir Frank

Steel, Major Samuel Strang

Hope, Sir Harry (Forfar)

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

Storry-Deans, R.

Hopkins, J. W. W.

Newton, Sir D. G. C. (Cambridge)

Stuart, Hon. J. (Moray and Nairn)

Horlick, Lieut.-Colonel J. N.

Nicholson, O. (Westminster)

Sueter, Rear-Admiral Murray Fraser

Hudson, Capt. A. U. M. (Hackney, N.)

Nicholson, Col. Rt. Hn. W.G.(Ptrsf'ld.)

Tasker, R. Inigo.

Hume, Sir G. H.

Oakley, T.

Templeton, W. P.

Hume-Williams, Sir W. Ellis

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

Thom, Lt.-Col. J. G. (Dumbarton)

Hunter-Weston, Lt.-Gen. Sir Aylmer

Percy, Lord Eustace (Hastings)

Thomson, Rt. Hon. Sir W. Mitchell-

Iliffe, Sir Edward M.

Perkins, Colonel E. K.

Tinne, J. A.

Inskip, Sir Thomas Walker H.

Peto, Sir Basil E. (Devon, Barnstaple)

Titchfield, Major the Marquess of

Iveagh, Countess of

Pete, G. (Somerset, Frome)

Tryon, Rt. Hon. George Clement

Jackson, Sir H. (Wandsworth, Cen'l)

Pilcher, G.

Turton, Sir Edmund Russborough

James, Lieut.-Colonel Hon. Cuthbert

Pilditch, Sir Philip

Wallace, Captain D. E.

Kindersley, Major G. M.

Pownail, Sir Assheton

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

King, Commodore Henry Douglas

Price, Major C. W. M.

Warner, Brigadier-General W. W.

Knox, Sir Alfred

Raine, Sir Walter

Warrender, Sir Victor

Lamb, J. Q.

Ramsden, E.

Watson, Rt. Hon. W. (Carlisle)

Lane Fox, Col. Rt. Hon. George R.

Reid, D. D. (County Down)

Watts, Sir Thomas

Lister, Cunliffe-, Rt. Hon. Sir Philip

Remer, J. R.

Wayland, Sir William A.

Long, Major Eric

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Wells, S. R.

Lougher, Lewis

Roberts, E. H. G. (Flint)

White, Lieut.-Colonel G. Dairymple

Lucas-Tooth, Sir Hugh Vere

Roberts, Sir Samuel (Hereford)

Williams, A. M. (Cornwall, Northern)

Lynn, Sir R. J.

Ruggles-Brise, Lieut.-Colonel E. A.

Williams, Com. C. (Devon, Torquay)

MacAndrew, Major Charles Glen

Rye, F. G.

Williams, Herbert G. (Reading)

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

Samuel, A. M. (Surrey, Farnham)

Wilson, Sir C. H. (Leeds, Central)

Macdonald, R. (Glasgow, Cathcart)

Sandeman, N. Stewart

Wilson, R. R. (Stafford, Lichfield)

McLean, Major A.

Sanders, Sir Robert A.

Windsor-Clive, Lieut.-Colonel George

Macmillan, Captain H.

Sanderson, Sir Frank

Winterton, Rt. Hon. Earl

Macnaghten, Hon. Sir Malcolm

Savery, S. S.

Withers, John James

Macquisten, F. A.

Shaw, R. G. (Yorks, W.R., Sowerby)

Wolmer, Viscount

Maitland, A. (Kent, Faversham)

Sheffield, Sir Berkeley

Womersley, W. J.

Makins, Brigadier-General E.

Shepperson, E. W.

Wood, Rt. Hon. Sir Kingsley

Margesson, Captain D.

Simms, Dr. John M. (Co. Down)

Woodcock, Colonel H. c.

Marriott, Sir J. A. R.

Skelton, A. N.

Yerburgh, Major Robert D. T.

Merriman, Sir F. Boyd

Smith, Louis W. (Sheffield, Hallam)

Young, Rt. Hon. Sir Hilton (Norwich)

Meyer, Sir Frank

Smith-Carington, Neville W.

Milne, J. S. Wardlaw-

Smithers, Waldron

TELLERS FOR THE NOES.—

Mitchell, W. Foot (Saffron Walden)

Somerville, A. A. (Windsor)

Major Sir George Hennessy and Mr. Penny.

I beg to move, in page 3, line 30 at the end, to insert the words

"(8) If, on an application made for the purposes of this Sub-section by the owner of a fishing boat entered in the fishing boat register, it appears to the satisfaction of the Commissioners that the applicant has at any time within the period of six months preceding the date of his application, or within such longer period preceding that date as the Commissioners may in any special case allow, used any quantity of hydrocarbon oil on board the boat, he shall be entitled to obtain from the Commissioners repayment of any duty which has been paid in respect of the oil so used

Provided that

( a ) an application for the purposes of this Sub-section must be made in such manner as the Commissioners may prescribe; and

( b ) no person who has previously made an application under this Sub-section for repayment of duty shall be entitled to make a further application until the expiration of at least three months from the date on which the last preceding application was made.

In this Sub-section the expression 'fishing boat' means a boat used for the purposes of fishing by a person gaining a substantial part of his livelihood thereby."

During the Committee stage, I gave a promise that I would do my best to meet the case put forward on behalf of fishing-boat owners in respect of the petrol they use. I promised that I would make a special effort to meet the case of those engaged in the fishing industry, who are among the less well-to-do classes in the country, and I am glad to say that the Revenue authorities, in consultation with other Departments, have been able to devise a Clause which will have the effect desired. It fulfils the promise I gave not only in the sense of an honest effort but also in the sense of the actual result achieved.

I desire in a few words to thank the Chancellor of the Exchequer for the courteous consideration he has given to this subject. It is true, as the Chancellor said on previous occasions, that the actual money at stake is very small, but to these people who have to work on such a slender margin and whose industry is in such a bad plight even this little rebate will make a great deal of difference. There is one reservation I feel bound to make, and that is, that I regret that the officials of the Inland Revenue have wrapped up this gift in so many layers of forms and tied it up with so much red tape. It is not easy for fishermen to make up these forms, which are very puzzling, and I should have thought some easier method might have been chosen.

May I also, in a few words, express my thanks on behalf of the great fishing industry to the Chancellor of the Exchequer for meeting the wishes of those engaged in the industry. The real point was this, that this concession was promised in the Budget speech, and as the forms were issued the people did expect that this concession would be given. When the form was withdrawn and another sent out saying that they were not to get this rebate, naturally, they were disappointed. The Chancellor of the Exchequer has now reconsidered the whole matter and, realising that these fishermen will not get any benefit from rating relief, has kindly agreed that they shall not have to pay the duty on the petrol they use. As far as my constituents are concerned, I thank the Chancellor.

I gladly rise to thank the Chancellor most sincerely for this concession. He has given it in a very handsome way, and it will affect many small people around the coasts of Great Britain who, I am sure, will appreciate this kindness.

As one who on two occasions at least have put what the Chancellor of the Exchequer might consider ferocious supplementary questions to him at Question time, I heartily join with my hon. Friends in thanking him for his consideration.

As one who represents a fishing industry may I also add my thanks to those of other hon. Members.

As one who has no fishing constituents, may I be allowed to endorse everything that has been said by previous speakers in thanking the Chancellor of the Exchequer for this concession.

I desire to associate myself very warmly with everything that has been said for the generous action of the Chancellor of the Exchequer. How the Chancellor of the Exchequer can be so generous in this case and treat me with so much indifference, is one of those conundrums which I am not able to solve. He is one of the most delightful people in the world, but at the same time he is a very difficult proposition if you want to get any concession from him. Nevertheless, I associate myself very heartily with other hon. Members in complimenting the Chancellor of the Exchequer on granting this concession.

As a representative of the Welsh fishermen, I join with other hon. Members in paying a tribute to the Chancellor for this generous act. We shall all remember this as one of those occasions on which he has been gracious and has granted a concession.

Amendment agreed to.

CLAUSE 8.—(Customs Duty on buttons.)

I beg to move, to leave out the Clause.

This Clause deals with buttons and enamelled hollow-ware, and it has been debated, discussed and discussed, at great length many times before. It is not necessary to add anything to the devastating arguments which have been adduced against the imposition of these Duties. They will bring in no money; they will be vexatious, and will raise the cost of many necessary articles of daily attire and daily life.

I beg to second the Amendment.

I do not need to repeat the arguments which I have used so many times before. The objections to this Clause remain unabated, but it is essential, if in future this machinery of safeguarding is to be set in motion in order to impose Duties of this kind, that there should be more publicity and warning given to the public, and we want to make quite certain that the Committee shall be in possession of all the information that is available in each case. In answer to a question the right hon. Gentleman the President of the Board of Trade said that, as a general rule, three weeks' notice was given in order to prepare a case. It is true that in these inquiries certain interests criticise the proposed Duty, but their evidence, if they are importers, is always discredited as the evidence of interested parties. The trouble is that the parties who ask for these Duties naturally put their case in its most attractive form, and, naturally, place before the Committee only those facts and figures which will strengthen their case.

I think the right hon. Gentleman should provide that the information should be obtained through impartial sources and by experts. An instance of the working of the system is given in the case of hollow ware. In that industry certain figures were put forward in the first instance, but, later on, these figures were largely discredited because of new information which had become available. I suggest that as this House is responsible for the imposition of these Duties, we should make sure that all the evidence given to the Committee is unbiased, impartial and unprejudiced. The conclusions reached should be based on satisfactory evidence and on statistics that are beyond question, though I am afraid that in many instances the evidence and statistics have not fulfilled that requirement.

I appreciate the desire of the hon. Member to satisfy himself on which side lies the balance of truth and probability in the evidence, and I am very glad to be able to satisfy him on that point. He did express some anxiety on the matter this afternoon and in the previous Debate. Let me at once assure him further that in the matter of hollow-ware there has been no sort of increase in the British price, but that on the contrary in some cases there has been a reduction. A considerable number of people have already been added to the volume of employment in the industry, and one firm alone is employing 150 more men.

Entirely on their enamelled hollow-ware; that is the statement of the firm. There has been no rise in the British price, and in one or two cases there has been some reduction. One hon. Gentleman was anxious as to whether we could manufacture corozo buttons in this country. One firm alone has doubled its output of this particular article. It has ordered new machinery to add to its plant, all its workers are fully employed and many of them are working overtime. Some anxiety has also been expressed as to the effect on some other industries. Already I have evidence after only a few weeks, that firms are placing large orders for machinery and that one firm alone has received orders for between £60,000 and £70,000 worth of new machinery for one type of button alone. Another firm to celebrate the advent of the duty, has given its employés over August bank holiday a week's holiday on full pay.

I shall certainly draw the attention of the Minister of Labour to the fact that the button industry is taking on new work.

I am very sorry that the hon. Member for South-West Bethnal Green (Mr. Harris) has brought up again the question of the quality of the evidence and the decisions reached by the Committees on Safeguarding. What does he mean? Does he mean that the evidence has not been subject to cross-examination and has not been thrashed out thoroughly? Does he suggest that a Committee has been in any way biased in the conclusions at which it arrives? I am quite satisfied that no Committees have ever prepared reports for this House with a greater regard for their responsibility. It is a monstrous thing that the hon. Member should continue to repeat his suggestions and insinuations. The conclusions of the Committees have been arrived at after the most careful sifting of evidence.

I am surprised that the hon. Member for Moseley (Mr. Hannon) has sat down without making an apology. On the last occasion, when we discussed this Duty, he raised prejudice by calling attention to a number of names of those who were in this business. Among them was that of a gentleman named Mulliner, and he suggested that the name was that of a foreigner. Since then a letter has appeared in the "Times" pointing out that the name was held by a gentleman belonging to a family that has lived in Leicestershire for 100 years. If the hon. Gentleman's attention has not previously been called to this fact, I do so now, and he has his chance.

With the permission of the House I want at once to make my apology to the gentleman concerned. I discovered from a notification in one of the provincial papers that the gentleman mentioned belongs to an old English family. I understood that he represented a foreign firm. In so far as I caused him the slightest inconvenience or pain, I apologise.

Question put, "That the words proposed to be left out stand part of the Bill."

The House divided: Ayes, 212; Noes, 124.

Division No. 317.]

AYES.

[8.23 p.m.

Acland-Troyte, Lieut.-Chlonel

Davies, Dr. Vernon

James, Lieut.-Colonel Hon. Cuthbert

Agg-Gardner, Rt. Hon. Sir James T

Dawson, Sir Philip

Jephcott, A. R.

Albery, Irving James

Dean, Arthur Wellesley

Kennedy, A. R. (Preston)

Ashley, Lt.-Col. Rt. Hon. Wilfrid W

Dixey, A. C.

King, Commodore Henry Douglas

Atholl, Duchess of

Drewe, C.

Kinloch-Cooke, Sir Clement

Baldwin, Rt. Hon. Stanley

Edmondson, Major A. J.

Knox, Sir Alfred

Balfour, George (Hampstead)

Elliot, Major Walter E.

Lamb, J. Q.

Banks, Sir Reginald Mitchell

Ellis, R. G.

Lister, Cunliffe-, Rt. Hon. Sir Philip

Barclay-Harvey, C. M.

Evans, Captain A. (Cardiff, South)

Long, Major Eric

Barnett, Major Sir Richard

Everard, W. Lindsay

Lougher, Lewis

Beamish, Rear-Admiral T. P. H.

Fairfax, Captain J. G.

Lucas-Tooth, Sir Hugh Vere

Bellairs, Commander Carlyon

Falle, Sir Bertram G.

Lumley, L. R.

Bennett, A. J.

Fermoy, Lord

Lynn, Sir R. J.

Betterton, Henry B.

Ford, Sir P. J.

MacAndrew, Major Charles Glen

Birchall, Major J. Dearman

Forestier-Walker, Sir L.

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

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

Fremantle, Lieut-Colonel Francis E

Macdonald, R. (Glasgow, Cathcart)

Blundell, F. N.

Gadle, Lieut.-Col. Anthony

McLean, Major A.

Boothby, R. J. G.

Galbraith, J. F. W.

Macmillan, Captain H.

Bourne, Captain Robert Croft

Ganzonl, Sir John

Macnaghten, Hon. Sir Malcolm

Bowyer, Capt. G. E. W.

Gates, Percy

Maitland, A. (Kent, Faversham)

Brooke, Brigadier-General C. R. I.

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

Makins, Brigadier-General E.

Broun-Lindsay, Major H.

Grace, John

Margesson, Captain D.

Brown, Col. D. C. (N'th'I'd., Hexham)

Grattan-Doyle, Sir N.

Meller, R. J.

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

Greene, W. P. Crawford

Merriman, Sir F. Boyd

Burgoyne, Lieut.-Colonel Sir Alan

Grenfell, Edward C. (City of London)

Meyer, Sir Frank

Burman, J. B.

Grotrian, H. Brent

Milne, J. S. Wardlaw.

Burney, Lieut.-Com. Charles D.

Gunston, Captain D. W.

Mitchell, W. Foot (Saffron Walden)

Burton, Colonel H. W.

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

Mitchell, Sir W. Lane (Streatham)

Butler, Sir Geoffrey

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

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

Cadogan, Major Hon. Edward

Hammersley, S. S.

Moore, Lieut.-Colonel T. C. R. (Ayr)

Campbell, E. T.

Hanbury, C.

Morrison, H. (Wilts, Salisbury)

Carver, Major W. H.

Hannon, Patrick Joseph Henry

Nall, Colonel Sir Joseph

Cayzer, Maj. Sir Herbt. R. (Prtsmth, S.)

Harland, A.

Nicholson, O. (Westminster)

Cazalet, Captain Victor A.

Hartington, Marquess of

Oakley, T.

Cecil, Rt. Hon. Sir Evelyn (Aston)

Harvey, Major S. E. (Devon, Totnes)

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

Chadwick, Sir Robert Burton

Haslam, Henry C.

Percy, Lord Eustace (Hastings)

Chapman, Sir S.

Headiam, Lieut.-Colonel C. M.

Perkins, Colonel E. K.

Churchman, Sir Arthur C.

Henderson, Lieut.-Col. Sir Vivian

Peto, Sir Basil E. (Devon, Barnstaple)

Cobb, Sir Cyril

Heneage, Lieut.-Colonel Arthur P.

Pilcher, G.

Cockerill, Brig.-General Sir George

Henn, Sir Sydney H.

Pownall, Sir Assheton

Cohen, Major J. Brunel

Hennessy, Major Sir G. R. J.

Price, Major C. W. M.

Colfox, Major Wm. Phillips

Hills, Major John Walter

Raine, Sir Walter

Cooper, A. Duff

Holbrook, Sir Arthur Richard

Ramsden, E.

Cope, Major Sir William

Hope, Sir Harry (Forfar)

Reid, D. D. (County Down)

Couper, J. B

Hopkins, J. W. W.

Remer, J. R.

Courtauld, Major J. S.

Horlick, Lieut.-Colonel J. N.

Rhys, Hon. C. A. U.

Courthope, Colonel Sir G. L.

Hudson, Capt. A. U. M. (Hackney, N.)

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Craig, Sir Ernest (Chester, Crewe)

Hume, Sir G. H.

Roberts, E. H. G. (Flint)

Crooke, J. Smedley (Deritend)

Hume-Williams, Sir W. Ellis

Roberts, Sir Samuel (Hereford)

Crookshank, Cpt. H. (Lindsey, Gainsbro)

Hunter-Weston, Lt.-Gen. Sir Aylmer

Ruggles-Brise, Lieut.-Colonel E. A.

Cunliffe, Sir Herbert

Hurd, Percy A.

Russell, Alexander West (Tynemouth)

Curzon, Captain Viscount

Iliffe, Sir Edward M.

Rye, F. G.

Dalkeith, Earl of

Inskip, Sir Thomas Walker H.

Samuel, A. M. (Surrey, Farnham)

Davidson, Major-General Sir John H.

Iveagh, Countess of

Sandeman, N. Stewart

Davies, Maj. Geo. F.(Somerset, Yeovil)

Jackson, Sir H. (Wandsworth, Cen'l)

Sanderson, Sir Frank

Savery, S. S.

Stuart, Hon. J. (Moray and Nairn)

Williams, Com. C. (Devon, Torquay)

Shaw, R. G. (Yorks, W.R., Sowerby)

Sueter, Rear-Admiral Murray Fraser

Williams, Herbert G. (Reading)

Sheffield, Sir Berkeley

Tasker, R. Inigo.

Wilson, Sir C. H. (Leeds, Central)

Shepperson, E. W.

Templeton, W. P.

Wilson, R. R. (Stafford, Lichfield)

Simms, Dr. John M. (Co. Down)

Thom, Lt.-Col. J. G. (Dumbarton)

Windsor-Clive, Lieut.-Colonel George

Skelton, A. N.

Thomson, Rt. Hon. Sir W. Mitchell-

Winterton, Rt. Hon. Earl

Smith, Louis W. (Sheffield, Hallam)

Tinne, J. A.

Withers, John James

Smith-Carington, Neville W.

Titchfield, Major the Marquess of

Wolmer, Viscount

Smithers, Waldron

Wallace, Captain D. E.

Womersley, W. J.

Somerville, A. A. (Windsor)

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

Wood, Rt. Hon. Sir Kingsley

Southby, Commander A. R. J.

Warner, Brigadier-General W. W.

Woodcock, Colonel H. C.

Spender-Clay, Colonel H.

Watson, Rt. Hon. W. (Carlisle)

Yerburgh, Major Robert D. T

Stanley, Lieut.-Colonel Rt. Hon. G. F

Watts, Sir Thomas

Young, Rt. Hon. Sir Hilton (Norwich)

Stanley, Lord (Fylde)

Wayland, Sir William A.

Stanley. Hon. O. F. G. (Westm'eland)

Wells, S. R.

TELLERS FOR THE AYES.—

Steel, Major Samuel Strang

White, Lieut.-Col. Sir G. Dairymple

Mr. Penny and Sir Victor Warrender

Storry-Deans, R.

Williams, A. M. (Cornwall, Northern)

NOES.

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

Hartshorn, Rt. Hon. Vernon

Richardson, R. (Houghton-le-Spring)

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

Hayday, Arthur

Riley, Ben

Attlee, Clement Richerd

Hayes, John Henry

Roberts, Rt. Hon. F. O.(W.Bromwich)

Baker, J. (Wolverhampton, Bilston)

Henderson, Rt. Hon. A. (Burniey)

Saklatvala, Shapurji

Baker, Walter

Henderson, T. (Glasgow)

Scurr, John

Barnes, A.

Hirst, G. H.

Shaw, Rt. Hon. Thomas (Preston)

Batey, Joseph

Hirst, W. (Bradford, South)

Shepherd, Arthur Lewis

Briant, Frank

Hopkinson, A. (Lancaster, Mossley)

Shiels, Dr. Drummond

Bromfield, William

Hore-Belisha, Leslie

Sinclair, Major Sir A. (Caithness)

Bromley, J.

Hudson, J. H. (Huddersfield)

Sitch, Charles H.

Brown, Ernest (Leith)

John, William (Rhondda, West)

Slesser, Sir Henry H.

Brown, James (Ayr and Bute)

Jones, Henry Haydn (Merioneth)

Smith, Ben (Bermondsey, Rotherhithe)

Cape, Thomas

Jones, Morgan (Caerphilly)

Smith, H. B. Lees (Keighley)

Charleton, H. C.

Kelly, W. T.

Smith, Rennie (Penistone)

Cluse, W. S.

Kennedy, T.

Snell, Harry

Clynes, Rt. Hon. John R.

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

Snowden, Rt. Hon. Philip

Connolly, M.

Lansbury, George

Stamford, T. W.

Cove, W. G.

Lawrence, Susan

Stephen, Campbell

Cowan, D. M. (Scottish Universities)

Lawson, John James

Stewart, J. (St. Rollox)

Dalton, Hugh

Lee, F.

Sutton, J. E.

Davies, Ellis (Denbigh, Denbigh)

Lindley, F. W.

Thorne G. R. (Wolverhampton, E.)

Davies, Rhys John (Westhoughton)

Livingstone, A. M.

Thorne, W. (West Ham, Plaistow)

Dennison, R.

Longbottom, A. W.

Thurtle, Ernest

Duncan, C.

Lowth, T.

Tinker, John Joseph

Dunnico, H.

Lunn, William

Tomlinson, R. P.

Edge, Sir William

MacDonald, Rt. Hon. J, R. (Aberavon)

Townend, A. E.

Fenby, T. D.

Mackinder, W.

Varley, Frank B.

Forrest, W.

Maclean, Nell (Glasgow, Govan)

Viant, S. P.

Gardner, J. P.

Malone, C. L'Estrange (N'thampton)

Walsh, Rt. Hon. Stephen

Gillett, George M.

March, S.

Watson, W. M. (Dunfermline)

Gosling, Harry

Maxton, James

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

Graham. Rt. Hon. Wm. (Edin., Cent.)

Montague, Frederick

Wedgwood, Rt. Hon. Josiah

Greenall, T.

Morris, R. H.

Wellock, Wilfred

Grenfell, D. R. (Glamorgan)

Murnin, H.

Williams, C. P. (Denbigh, Wrexham)

Griffith, F. Kingsley

Naylor, T. E.

Williams, Dr. J. H. (Lianelly)

Griffiths, T. (Monmouth, Pontypool)

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

Wilson, R. J. (Jarrow)

Groves, T.

Owen, Major G.

Wright, W.

Grundy, T. W.

Palin, John Henry

Young, Robert (Lancaster, Newton)

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

Parkinson, John Allen (Wigan)

Hall, G. H. (Merthyr Tydvil)

Pethick-Lawrence, F. W.

TELLERS FOR THE NOES.—

Hardie, George D.

Potts, John S.

Mr. Charles Edwards and Mr. Whiteley.

Harney, E. A.

Purcell, A. A.

Harris, Percy A.

Rees, Sir Beddoe

THIRD SCHEDULE.—(Amended Rates of Duty in the case of certain, mechanically propelled vehicles.)

I beg to move, in page 32, to leave out lines 14 to 19 inclusive, and to insert instead thereof the words:

This Amendment seeks to carry out the oft-repeated policy of the Government in regard to helping agriculture. Everyone realises the intense desire of the Chancellor of the Exchequer and the Minister of Transport to assist, in every possible way, the efforts of the farmers to recover that prosperity which agriculture once enjoyed. As the law stands, the duty on farmers' motor-lorries renders it almost impossible for them to run such lorries, and, in many cases, farmers cannot get into direct touch with their markets or with the consumer. They are forced to depend on horse traffic and, as many hon. Members know, horse traffic is not economical and is very often dangerous on the hard macadamised roads of to-day. The result is that difficulties are put in the way of farmers getting their produce to the markets or to the consumers. No doubt, the Minister of Transport will say that in the Amendment I am asking too much. That may be, but if one does not ask for too much one may get nothing, and I hope the Minister will be kind enough to say that if he cannot give me all I ask for he can, at any rate, give me something.

The Amendment will not hurt the Exchequer. At the worst it could only damage the Road Fund, but, I submit that there will be no damage at all to the Road Fund because the increased use by farmers of motor lorries will more than adequately compensate for any loss entailed to the Road Fund. If the Amendment be accepted it will not only benefit the farmer—which is what the Government want to do—but it will also benefit the motor industry by bringing more lorries and other motor vehicles into use, and it will also benefit the Exchequer—indirectly I admit—through the increased taxation which will be made available through the increased consumption of petrol. Having in mind these three great advantages, that are to be gained by the adoption of the Amendment, I feel confident that the Minister of Transport will look kindly on my request. We know that there is an intense trade depression among farmers at the moment. That trade depression, unfortunately, has caused a mental depression. It has led to an "inferiority complex" among agriculturists. They have been so consistently "down in the dumps" for so many years that they have the impression that they can never get back to prosperity.

The Chancellor of the Exchequer has taken a great and generous step in giving them relief from rating. Cannot the right hon. Gentleman put the cornerstone to his scheme for helping agriculture by giving the concession for which I now ask? It will be a great help to this almost dying industry. It will put fresh life into it and into the farmers as a body. I make this appeal on behalf of the farmers all over Great Britain, and not for those in Scotland alone. This concession would put fresh courage and hope into them and give them the feeling that, not only have they something to work for, but that they have the Government behind them in their efforts to make a success of the industry. I think the Minister of Transport will realise, as does every farmer, that no farmer can hope to keep a lorry at a cost of £26 a year, as in some cases he has to pay. It puts an utterly unfair charge on him. The farmer can only use these motor lorries for a very restricted period, during sale times or when he requires articles from the shops, and to ask him to carry this heavy and unfair tax on his lorry is to cripple him not only in regard to the social amenities of life, but also in regard to carrying on his trade and industry to the best possible advantage. I am appealing, I know, to one who is essentially sympathetic to the farmers' case, and if he cannot give me all that I have asked, I hope that he will give me my night's rest by making some concession at any rate.

I beg to second the Amendment.

I do not desire to add much to what has been so well said by my hon. and gallant Friend the Member for Ayr Burghs (Lieut.-Colonel Moore), but I believe the justice of the case of the farmer will appeal very strongly to the Government, and that we can, with canfidence, imply that we shall have given to us what we are asking in this Amendment.

I really do not think that the House will consider that the Government in the last two or three years have been unsympathetic to the farmers in regard to the taxation of their vehicles. May I, in the first place, point out that my hon. and gallant Friend the Member for Ayr Burghs (Lieut.-Colonel Moore), wants to assimilate the taxation of the farmer's lorries, which he uses to take his goods to the station or to the consumer, lorries which use the roads in the same way as do anybody else's lorries, to the very reduced rate which the Government gave to his tractors two or three years ago. We gave a very reduced tax on tractors for an excellent reason, because the farmers said, with great truth, "These tractors are used largely on the land; they use the roads very little indeed; we are a distressed industry; and cannot you help us by giving us reduced taxation?" That was a just claim, because the road user of these vehicles was very small, and the taxation, I submit, ought to be based largely upon the user of the road. Therefore, the tractors, which do not use the roads except to a very small extent, are now taxed as my hon. and gallant Friend would suggest that the lorries should be taxed, that is, not exceeding five tons in weight unladen, £6; exceeding five tons in weight unladen, £10.

I think that is a fair tax, as far as any tax can be fair, for the tractors to pay, but now comes the hon. and gallant Member, and naturally tries to get what he can for the agricultural interests. He says, "Let us differentiate still more in favour of the farmer's lorries and leave the taxation on everybody else's lorries at the rate at which it stands at present." We have differentiated in past Finance Bills in favour of the farmer's lorries which he uses to carry his produce to the station and elsewhere. If hon. Members will turn to the third Schedule of this Bill, they will see that the farmer's lorry up to two tons unladen pays the same as the ordinary user, but above that the farmer cannot under any circumstances pay more than £20 if it is fitted with pneumatic tyres, and £25 otherwise. As the ordinary business man, anybody rho is not a farmer, goes up as high as £60, I do ask the House to support the Government and to say that, as we have already given this very considerable concession to agricultural interests, it would not be just to differentiate still more in their favour as against the interests of all other users of the roads. The Chancellor of the Exchequer said that in giving, as we have done, a reduction of duties amounting to £1,300,000 to various users in this Budget, we have gone as far as, and probably farther than, we are justified in going, in view of the state of our finances—

and the commitments of the road authorities, as the hon. and gallant Member says. I would point out that we have given a very considerable concession—I have not the figures with me, as I did not know that this Amendment was coming on so soon, but I think it is over £600,000—as the amount that it is estimated that we shall lose owing to the concession in regard to pneumatic tyres, which is a step in the right direction, because it diminishes the damage to the roads. I am rather afraid that we shall find that, owing to the very considerable turnover due to this concession, the amount of money that we shall lose will be considerably more than that. Therefore, I could not, however strong the case is—and I submit that it is not very strong, considering the concessions we have made in the past—accept this Amendment, owing to the possible danger of not having enough money to meet our liabilities to the local authorities.

I rise to support the Amendment, and I do so because, like many other hon. Members, I have a great many farmers in my constituency. The Government have always said that they were willing to assist the farming industry to the utmost of their power, and here is a very simple way of assisting the farmers very materially. The hon. and gallant Member for Ayr Burghs (Lieut.-Colonel Moore) has pointed out three heads under which the Government may be benefited, such as by the increased consumption of petrol and so on, but I base the claim on the justice of the case. The farmers are not doing well, and they require all the help that can be given to them. The farmers have been asking for concessions and have not always got them, and they are coming now to a Government that has always said it was very sympathetic to the farmers. I trust that the hon. and gallant Member for Ayr Burghs will carry this Amendment to a division, in order to show to the country that hon. Members on every side of this House are anxious to assist the farmer, because he needs assistance. I hope the right hon. Gentleman will reconsider what he has said. This will not be a very big loss to the Government, and, indeed, I believe the Exchequer would benefit and not lose in the long run.

I hope that the right hon. Gentleman will reconsider the Amendment. It is obvious that he has spoken without reflecting on the case that my hon. and gallant Friend has so convincingly put before the House. He spoke as if the farmers were coming forward with their caps in their hands begging for some special advantages which are not given to any other classes, and as though there were some sanctity in these rates, some first principle that farmers should pay these particular rates. It is nothing of the kind. As he pointed out, they pay special rates of their own, and he made a great point of the fact that they did not have to pay on the graduated scale for vehicles exceeding two tons in weight as other road users did. What does that matter? How many farmers have vehicles of more than two tons in weight? It is the smaller man with a small vehicle whom it is important to help from the standpoint of the agricultural industry. These farmers' lorries are used for the carriage of foodstuffs; we have a primary interest in reducing the prices of food in every way we can, and if we take this, as it appears to us, unfair burden from the farmer, we should do something to lower the price of food.

The Minister of Transport used a most astonishing argument. He said that he

has given way in this Budget all he can to the road using industry, and he has received the surprising support of the hon. and gallant Member for East Rhondda (Lieut.-Colonel Watts-Morgan), who suggested that the local authorities might be handicapped in meeting their commitments if the farmers got this small concession. I have not had time to work out what the concession would cost. The Minister of Transport did not give us the figures, but I am safe in saying that, whatever the figure is, it is a mere insignificant paltry fraction of the raids that the right hon. Gentleman and his colleagues are making on the Road Fund. An argument like that has astonished those who, to whichever party we belong, desire to support the farmers in this matter. I would appeal to the right hon. Gentleman to reconsider the arguments which we have put before him, and to see if this very slight Amendment cannot be made.

Question put, "That the words proposed to be left out stand part of the Bill."

The House divided: Ayes, 206; Noes, 122.

Division No. 318.]

AYES.

[8.50 p.m.

Acland-Troyte, Lieut.-Colonel

Cooper, A. Duff

Gunston, Captain D. W.

Agg-Gardner, Rt. Hon. Sir James T.

Cope, Major Sir William

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

Albery, Irving James

Couper, J. B.

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

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Courtauld, Major J. S.

Hammersley, S. S.

Atholl, Duchess of

Courthope, Colonel Sir G. L.

Hanbury, C.

Baldwin, Rt. Hon. Stanley

Craig, Sir Ernest (Chester, Crewe)

Hannon, Patrick Joseph Henry

Banks, Sir Reginald Mitchell

Crooke, J. Smedley (Deritend)

Harland, A.

Barclay-Harvey, C. M.

Crookshank, Cpt.H.(Lindsey, Gainsbro)

Hartington, Marquess of

Barnett, Major Sir Richard

Cunliffe, Sir Herbert

Harvey, Major S. E. (Devon, Totnes)

Beamish, Rear-Admiral T. P. H.

Curzon, Captain Viscount

Hasiam, Henry C.

Bennett, A. J.

Dalkeith, Earl of

Headlam, Lieut.-Colonel C. M.

Betterton, Henry B.

Davidson, Major-General Sir John H.

Henderson, Lieut.-Col. Sir Vivian

Bevan, S. J.

Davies, Maj. Geo. F. (Somerset, Yeovil)

Heneage, Lieut.-Col. Arthur P.

Birchall, Major J. Dearman

Davies, Dr. Vernon

Henn, Sir Sydney H.

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

Dawson, Sir Philip

Hennessy, Major Sir G. R. J.

Blundell, F. N.

Dean, Arthur Wellesley

Hills, Major John Waller

Bourne, Captain Robert Croft

Dixey, A. C.

Holbrook, Sir Arthur Richard

Bowyer, Captain G. E. W.

Drewe, C.

Hope, Capt. A. O. J. (Warw'k, Nun.)

Brooke, Brigadier-General C. R. I.

Edmondson, Major A. J.

Hope. Sir Harry (Forfar)

Broun-Lindsay, Major H.

Elliot, Major Walter E.

Hopkins, J. W. W.

Brown, Col. D. C. (N'th'I'd., Hexham)

Ellis, R. G.

Hopkinson, A. (Lancaster, Mossley)

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

Evans, Captain A. (Cardiff, South)

Horlick, Lieut.-Colonel J. N.

Burgoyne, Lieut.-Colonel Sir Alan

Everard, W. Lindsay

Hudson, Capt. A. U. M.(Hackney, N.)

Burman, J. B.

Fairfax, Captain J. G.

Hume, Sir G. H

Burton, Colonel H. W.

Fielder, E. B.

Hunter-Weston, Lt.-Gen. Sir Aylmer

Butler, Sir Geoffrey

Ford, Sir P. J.

Inskip, Sir Thomas Walker H.

Cadogan, Major Hon. Edward

Forestier-Walker, Sir L.

Iveagh, Countess of

Campbell, E. T.

Fremantle, Lieut.-Colonel Francis E.

Jackson, Sir H. (Wandsworth, Cen'l)

Carver, Major W. H.

Gadie, Lieut.-Col. Anthony

James, Lieut.-Colonel Hon. Cuthbert

Cayzer, Maj. Sir Herbt.R.(Prtsmth.S.)

Galbraith, J. F. W.

Jephcott, A. R.

Cecil, Rt. Hon. Sir Evelyn (Aston)

Ganzonl, Sir John

Kennedy, A. R. (Preston)

Chadwick, Sir Robert Burton

Gates, Percy

King, Commodore Henry Douglas

Chapman, Sir S.

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

Kinloch-Cooke, Sir Clement

Churchman, Sir Arthur C.

Grace, John

Knox, Sir Alfred

Cobb, Sir Cyril

Grattan-Doyle, Sir N.

Lister, Cunliffe-, Rt. Hon. Sir Philip

Cockerill, Brig.-General Sir George

Greene, W. P. Crawford

Long, Major Eric

Cohen, Major J. Brunel

Grenfell, Edward C. (City of London)

Lougher, Lewis

Colfox, Major William Phillips

Grotrian, H. Brent

Lucas-Tooth, Sir Hugh Vera

Lumley, L R.

Price, Major C. W. M.

Storry-Deans, R.

Lynn, Sir Robert J.

Radford, E. A.

Streatfeild, Captain S. R.

MacAndrew, Major Charles Glen

Raine, Sir Walter

Stuart, Hon. J. (Moray and Nairn)

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

Ramsden, E.

Tasker, R. Inigo.

Macdonald, R. (Glasgow, Cathcart)

Reid, D. D. (County Down)

Thom, Lt.-Col. J. G. (Dumbarton)

McDonnell, Colonel Hon. Angus

Remer, J. R.

Thomson, Rt. Hon. Sir W. Mitchell-

McLean, Major A.

Rhys, Hon. C. A. U.

Tinne, J. A.

Macmillan, Captain H.

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Titchfield, Major the Marquess of

Macnaghten, Hon. Sir Malcolm

Roberts E. H. G. (Flint)

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

Maitland, A. (Kent, Faversham)

Roberts, Sir Samuel (Hereford)

Warner, Brigadier-General W. W.

Makins, Brigadier-General E.

Rodd, Rt. Hon. Sir James Rennell

Watson, Rt. Hon. W. (Carlisle)

Margesson, Capt. D.

Ruggles-Brise, Lieut.-Colonel E. A.

Watts, Sir Thomas

Meller R. J.

Russell, Alexander West-(Tynemouth)

Wayland, Sir William A.

Merriman, Sir F. Boyd

Rye, F. G.

Wells, S. R.

Meyer, Sir Frank

Samuel, A. M. (Surrey, Farnham)

White, Lieut.-Col. Sir G. Dairymple-

Milne, J. S. Wardlaw-

Sandeman, N. Stewart

Williams, A. M. (Cornwall, Northern)

Mitchell, W. Foot (Saffron Walden)

Sanderson, Sir Frank

Williams, Herbert G. (Reading)

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

Savery, S. S.

Wilson, Sir C. H. (Leeds, Central)

Morrison, H. (Wilts, Salisbury)

Shaw, R. G. (Yorks, W.R., Sowerby)

Wilson, R. R. (Stafford, Lichfield)

Morrison-Bell, Sir Arthur Clive

Shepperson, E. W.

Windsor-Clive, Lieut.-Colonel George

Nall, Colonel Sir Joseph

Simms, Dr. John M. (Co. Down)

Winterton, Rt. Hon. Earl

Nelson, Sir Frank

Skelton, A. N.

Withers, John James

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

Smith, Louis W. (Sheffield, Hallam)

Wolmer, Viscount

Nicholson, O. (Westminster)

Smith-Carington, Neville W.

Womersley, W. J.

Oakley, T.

Smithers, Waldron

Wood, Rt. Hon. Sir Kingsley

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

Somerville, A. A. (Windsor)

Woodcock, Colonel H. C.

Penny, Frederick George

Southby, Commander A. R. J.

Yerburgh, Major Robert D. T.

Percy, Lord Eustace (Hastings)

Spender-Clay, Colonel H.

Young, Rt. Hon. Hilton (Norwich)

Perkins, Colonel E. K.

Stanley, Lieut.-Colonel Rt. Hon. G. F.

Peto, Sir Basil E. (Devon, Barnstaple)

Stanley, Lord (Fylde)

TELLERS FOR THE AYES —

Pilcher, G.

Stanley, Hon. O. F. G. Westm'eland)

Captain Wallace and Sir Victor

Pownall, Sir Assheton

Steel, Major Samuel Strang

Warrender.

NOES.

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

Harris, Percy A.

Riley, Ben

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

Hartshorn, Rt. Hon. Vernon

Roberts, Rt. Hon. F. O. (W. Bromwich)

Attlee, Clement Richard

Hayday, Arthur

Scurr, John

Baker, Walter

Hayes, John Henry

Shaw, Rt. Hon. Thomas (Preston)

Barnes, A.

Henderson, Right Hon. A. (Burnley)

Shepherd, Arthur Lewis

Batey, Joseph

Henderson, T. (Glasgow)

Shiels, Dr. Drummond

Briant, Frank

Hirst, G. H.

Short, Alfred (Wednesbury)

Bromfield, William

Hirst, W. (Bradford, South)

Sinclair, Major Sir A. (Caithness)

Bromley, J.

Hore-Belisha, Leslie

Sitch, Charles H.

Brown, Ernest (Leith)

Hudson, J. H. (Huddersfield)

Slesser, Sir Henry H.

Brown, James (Ayr and Bute)

Hutchison, Sir Robert (Montrose)

Smith, Ben (Bermondsey, Rotherhithe)

Cape, Thomas

John, William (Rhondda, West)

Smith, Rennie (Penistone)

Charleton, H. C.

Jones, Henry Haydn (Merioneth)

Snell, Harry

Cluse, W. S.

Jones, Morgan (Caerphilly)

Snowden, Rt. Hon. Philip

Clynes, Rt. Hon. John R.

Kelly, W. T.

Stamford, T. W.

Connolly, M.

Kennedy, T.

Stephen, Campbell

Cove, W. G.

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

Stewart, J. (St. Rollox)

Cowan, D. M. (Scottish Universities)

Lansbury, George

Strauss, E. A.

Crawfurd, H. E.

Lawrence, Susan

Sutton, J E.

Dalton, Hugh

Lawson, John James

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

Davies, Ellis (Denbigh, Denbigh)

Lee, F.

Thorne, W. (West Ham, Plaistow)

Davies, Rhys John (Westhoughton)

Lindley, F. W.

Thurtle, Ernest

Dennison, R.

Livingstone, A. M.

Tinker, John Joseph

Duncan, C.

Longbottom, A. W.

Tomlinson, R. P.

Edge, Sir William

Lowth, T.

Townend, A. E.

Edwards, C. (Monmouth, Bedwellty)

Mackinder, W.

Varley, Frank B.

Evans, Capt. Ernest (Welsh Univer.)

Maclean, Neil (Glasgow, Govan)

Viant, S. P.

Fenby, T. D.

Malone, C. L'Estrange (N'thampton)

Walsh, Rt. Hon. Stephen

Forrest, W.

March, S.

Watson, W. M. (Dunfermilne)

Gillett, George M.

Maxton, James

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

Gosling, Harry

Montague, Frederick

Wedgwood, Rt. Hon. Josiah

Graham, Rt. Hon. Wm. (Edin., Cent.)

Morris, R. H.

Wellock, Wilfred

Greenall, T.

Murnin, H.

Whiteley, W.

Grenfell, D. R. (Glamorgan)

Naylor, T. E.

Williams, C. P. (Denbigh, Wrexham)

Griffith, F. Kingsley

Owen, Major G.

Williams, Dr. J. H. (Lianelly)

Griffiths, T. (Monmouth, Pontypool)

Palin, John Henry

Wilson, R. J. (Jarrow)

Groves, T.

Parkinson, John Allen (Wigan)

Wright, W

Grundy, T. W.

Pethick-Lawrence, F. W.

Young, Robert (Lancaster, Newton)

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

Potts, John S.

Hall, G. H. (Merthyr Tydvil)

Purcell, A. A.

TELLERS FOR THE NOES.—

Hardie, George D.

Rees, Sir Beddoe

Lieut. - Colonel Moore and Mr. Templeton.

Harney, E. A.

Richardson, R. (Houghton-le-Spring)

Bill to be read the Third time upon Friday, and to be printed. [Bill 185.]

Post Office and Telegraph [Money] Bill

Order for Second Reading read.

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

I ought to explain to the House—[HON. MEMBERS: "Agreed! "]—that this is a perfectly ordinary Post Office Bill. My right hon. Friend the Postmaster-General naturally desires to make a statement on the Bill, and it has been arranged through the usual channels that that statement shall be made on the Committee stage. It was thought at that time that the House would be sitting rather later to-night. In the changed circumstances, the Postmaster-General would have preferred to make his statement to-night, but my hon. Friend the Member for North Camberwell (Mr. Ammon) and other hon. Members opposite who take an interest in this subject, and who were a party to this arrangement, are, unfortunately, unable to be present to-night. That being so, the Postmaster-General does not propose to make his statement to-night, and therefore I hope the House will allow me to move the Second Reading formally, and the Postmaster-General's statement will be made on the Committee stage to-morrow.

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

I think the position in regard to this Bill is very unsatisfactory. It is a Bill of some importance and we are asked to give it a Second Reading without any explanation of it. It is quite true that the Postmaster-General and other hon. Members who are interested in this Bill have decided that they will discuss it on the Committee stage, but the Second Reading allows a wider scope for discussion, and I will refuse to allow this Bill to pass to-night until we have had some explanation of it. There are various things I want to know. I see that the Bill deals with the development of the postal, telegraph and telephone systems, and I am interested to know how far that will increase employment. I think it is also right that we should be told where the developments are going to take place. In the Bill we simply have a bald outline of powers which are being taken. I wish to know whether any development of the telephone system in rural areas is in contemplation. From time to time I have heard hon. Members representing agricultural districts complaining of the inadequacy and inefficiency of the telephone facilities in their districts, and before we give this Bill a Second Reading we ought to have something more than an apology for the absence of the Postmaster-General and some other hon. Members.

9.0 p.m.

I ought to have made it clear that it is solely to suit the convenience of hon. Members opposite that it was arranged to have the Debate tomorrow. Otherwise, the Postmaster-General would have made the statement to-night.

It may be that it would be for the convenience of some hon. Members on this side, but there are other hon. Members on this side who have not been consulted, and some hon. Members on this side do not intend to allow business like this to be passed without satisfactory explanations. I hope the Noble Lord knows sufficient of the Bill to be able to give us a little information. As there was a desire to put off discussion, it would have been a more satisfactory arrangement to defer the Second Reading. Why should not the Second Reading be delayed for one day? Then we could have a wider range of discussion. I hope the Noble Lord will tell the House something about the developments which will follow on the passing of this Bill, in view of the volume of unemployment there is in the country. Regarding the state of affairs in the rural areas, there was a question on the Order Paper to-day with regard to one district and the inadequacy of the telephone arrangements there.

On a point of Order. Is it in order for the hon. Member to refer to telephone developments when discussing a Bill which deals with money for the Post Office and telegraph systems?

The title of the Bill shows that it is one to pro- vide money for development of the postal, telegraph and telephone services.

I am sorry if the hon. Member is not able to read, but only able to speak.

Telephones are not mentioned in the title of the Bill on the Order Paper.

The point of Order which has been raised shows all the more necessity for a fuller statement from the Noble Lord than he has given to the House. It is evident that we are being asked to pass the Second Reading of this Measure without some hon. Members knowing anything concerning it. We have had no information whatever about this Bill. I want to know if there is going to be any increase in the postal deliveries in the West of Scotland. At present, we have a much earlier service than we had in pre-War days. I think it is only due to this House that, although the hon. Member for Camberwell (Mr. Ammon) and others are not here, those who are here should be given information on this Measure.

As there is no Seconder, the Amendment falls to the ground.

Question put, and agreed to.

Bill read a Second time.

Bill committed to a Committee of the Whole House for To-morrow.—[ Viscount Wolmer. ]

Administration of Justice Bill [Lords]

Lords consequential Amendments considered, and agreed to.

Naval Prize Bill

Order for Third Reading read.

Motion made, and Question proposed, "That the Bill be now read the Third time."—[ Lieut.-Colonel Headlam. ]

I would like the hon. Gentleman in charge of the Bill to give us a little information about it. I think some Amendments were made either in Committee upstairs or in this House, and perhaps the hon. and gallant Member will give us a short statement about the objects of the Bill.

I want to know if this Bill makes it quite clear that, where any of the officers of Trinity House have not yet had their cases dealt with, the passing over of this money will not prevent them being dealt with and these men receiving the amount which may be due to them.

I do not think there is anything in the Bill which would affect those officers in any deleterious way. With regard to the question of the hon. Member for Camlachie (Mr. Stephen), I would remind him that this Bill has been discussed twice on the Financial Resolution as well as in Committee of the Whole House. I am sorry that the hon. Member was not present, because he would have known considerably more about the Measure had he been present. At this moment, if I were to attempt to explain the whole Measure again, I am afraid that it would tire the House.

Question put, and agreed to.

Bill read the Third time, and passed.

Educational Endowments (Scotland) Bill [Lords]

As amended ( in the Standing Committee ) considered; read the Third time, and passed, with Amendments.

Representation of the People (Reading University) Bill

Order for Consideration of Lords Amendment read.

Motion made, and Question, "That the Lords Amendment be now considered," put, and agreed to.

Lords Amendment considered accordingly.

CLAUSE 2.—(Short Title.)

Lords Amendment:

In page 1, leave out from the word "and" in line 16, to the end of the Clause, and insert instead thereof:

"shall be included among the Acts which may be cited together as the Representation of the People Acts."

I beg to move, "That this House doth agree with the Lords in the said Amendment."

I would like the hon. Member to say a word with regard to the effect, of this Amendment.

This is purely a drafting Amendment inserted at the wish of the Home Office to make quite correct the Title Clause of the Bill. It is necessary on account of the larger Representation of the People Act, and it affects in no way the principle of the Bill.

Question put, and agreed to.

Electricity (Supply) Acts

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of the borough of Wilton and parts of the parishes of Bemerton and South Newton, in the rural district of Wilton, in the county of Wilts, which was presented on the 14th day of June, 1928, be approved."

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of part of the rural district of Chirk, in the county of Denbigh, and part of the rural district of Oswestry, in the county of Salop, which was presented on the 14th day of June, 1928, be approved."

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of part of the rural district of Bowland, in the West Riding of the county of York, which was presented on the 28th day of June, 1928, be approved."

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of parts of the city of New Sarum and of the rural district of Salisbury, in the county of Wilts, which was presented on the 28th day of June, 1928, be approved."

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of part of the rural district of Tisbury, in the county of Wilts, which was presented on the 27th day of June, 1928, be approved."

Resolved,

"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1926, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, for the transfer of the undertaking authorised by the Chasetown and District Electricity Special Order, 1924, which was presented on the 21st day of June. 1928, be approved."—[ Colonel Ashley. ]

The remaining Orders were read, and postponed.

Adjournment

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

Adjourned accordingly at a quarter after Nine o'Clock.