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Commons Chamber

Volume 220: debated on Thursday 2 August 1928

House of Commons

Thursday, August 2, 1928

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

Private Business

MINISTRY OF HEALTH PROVISIONAL ORDERS (No. 6) BILL

I beg to move,

"That so much of the Lords Message (31st July) as relates to the Ministry of Health Provisional Orders (No. 6) Bill be now considered."

This Motion is exactly the same as that which I made yesterday with regard to the Bognor Urban District Council Bill. Indeed, it really relates largely to the same subject matter. This provisional Order Bill deals partly with a Bill which is alternative to the Bognor Bill. The two Bills were heard by the same Committee in this House, and they will be heard by the same Committee in another place. It is not the fault wither of the Government Department or the promoters responsible for them that they have been so late. Their only chance of getting through is that they should be carried over to next Session, and, as we passed this Motion with regard to one of the Bills yesterday, it is only fair that we should pass it with regard to the other to-day.

Yes, that is so.

Question put, and agreed to.

So much of the Lords Message considered accordingly.

Ordered,

"That leave be given to suspend any further proceedings on the Ministry of Health provisional Orders (No. 6) Bill in order to proceed with the said Bill in the next Session of Parliament, provided that all fees due thereupon up to this day be paid."

Ordered,

"That a copy of the said Bill shall be deposited in the Committee and Private Bill Office not later than Five O'clock on or before the third day on which the House shall sit after the next meeting of Parliament, with a declaration annexed thereto, certified under the seal of the Minister of Health, and stating that the Bill is the same in every respect as the Bill at the last stage of the Proceedings thereon in this House in the Present Session."

Ordered,

"That the proceedings on the said Bill shall be pro forma Only in regard to every stage through which the same shall have passed in the present Session, and that no new fees be charged in respect to such stages."

Ordered,

"That the Standing Orders by which the proceedings on Bills are regulated shall not apply to the said Bill ion regard to any of the stages through which the same shall have passed during the present Session."

Ordered,

"That this Order be a Standing Order of the House."—[ The Chairman of Ways and Means. ]

Message to the Lords to acquaint them therewith.

May I ask whether it is obligatory upon you, Mr. Speaker, to read out this and similar Motions when they are already printed on the Order Paper?

I do not think that the word "obligatory" is a suitable one in this case, but it is usual to read out Motions of this kind to the House.

Oral Answers to Questions

Questions

Naval and Military Pensions and Grants

asked the Minister of Pensions whether it is the practice of his Department that medical officials of local branches of the Ministry are precluded from giving treatment or making treatment allowances to neurasthenic cases without first referring the matter to headquarters?

No, Sir, except in cases recom- mended for in-patient treatment, in which reference to headquarters is necessary in order to assure a satisfactory allocation of beds in the special hospitals provided for the various types of neurasthenic case.

Police

Increments

asked the Secretary of State for the Home Department whether he can give the number of cases since 1st January last in which special increments of pay have been withheld from constables of the Metropolitan police?

Under Regulations 53 and 54, the number is one; in the case of the long service increments under Regulations 58 and 59, the number is 51.

Regulations (Administration)

asked the Home Secretary whether there has been any official interpretation as to what constitutes special zeal, intelligence and proficiency under Statutory Police Regulation No. 53, and zealous and efficient discharge of duties under Statutory Police Regulation No. 58?

Several circulars or memoranda dealing with the administration of these Regulations have been issued. I will send the hon. Member copies of the relevant passages.

Can the right hon. Gentleman say whether it is possible for a, re-issue of instructions that no interpretations will be placed on efficiency that will have regard to the number of charges or summonses of an officer?

Is the practice uniform in all districts, and can the right hon. Gentleman also send me a copy?

Chief Constable, Buckingham

asked the Home Secretary whether he can now make a state- ment in connection with the appointment of a chief constable for the county of Buckingham?

I always try to see the selected candidate before deciding, and I am hoping to see this one very shortly.

Transport (Stationary Vehicles)

asked the Home Secretary whether his attention has been drawn to the danger caused by stationary vehicles drawn up, after sunset, with lights facing on-coming traffic; and if he will consider taking steps to stop this practice?

I have been asked to answer this question. I have under consideration the inclusion of a clause in the Draft Road Traffic Bill making it an offence to leave a motor vehicle in a position dangerous to other traffic using the road, but education in the courtesies of the road is perhaps the best means of removing such a difficulty as that to which the hon. Member refers.

Does the right hon. and gallant Gentleman agree that those who leave their cars in this position are the very kind of persons from whom the great bulk of the courteous motorists suffer every day?

I hope that missionary efforts will be made in order to educate these people.

Can the right hon. and gallant Gentleman say if it is ever his intention to introduce the Road Traffic Bill?

In view of the long delay, would it not be better that he should either drop the Bill or introduce it?

Sugar-Beet Factories (Labour Conditions)

asked the Home Secretary whether his attention has been called to the conditions under which the labourers work in certain of the sugar-beet factories during the summer working period, commencing in about a fortnight's time; if he is aware that 12-hour shifts are worked, Sundays included, and at the change over, each alternate week-end, the men work 18 hours on end; that there is no break for meals, and the men are expected to eat as they work; and that the work is done in a heated atmosphere, and with overtime some of the men have worked over 100 hours a week; and what instructions he has issued to His Majesty's factory inspectors on the matter?

The Factory Act does not deal with the hours and meal times of men, and I have therefore no jurisdiction over those matters. I understand that in most of the beet-sugar factories the system of three 8-hour shifts is adopted during the season, but some of the firms cannot adopt this system owing to special circumstances. It must be kept in mind that the season—which starts in October —only lasts about three months. Temperatures are necessarily somewhat high in this work, but the factory inspectors report that adequate ventilation is provided.

Are we to understand that the factory inspectors have really no jurisdiction at all over these sugar-beet factories, and that they can take no steps of any kind to see that the men are not working under conditions that are bad for their health?

Oh, no. The hon. and gallant Gentleman has not quite understood my answer. I have no powers with regard to the hours of the men at the factories, but the factory inspectors, of course, are responsible in regard to ventilation and so forth, and that is being kept under very careful consideration.

In view of the facts which I have sent to the right hon. Gentleman and which I obtained from a very responsible source, will he issue special instructions to his inspectors to see to these matters?

The hon. and gallant Gentleman was good enough to send me a letter which had been sent to him. I only received it yesterday, and I have given the best answer that I can give. I will cause inquiries to be made on the strength of that letter, and I will communicate with the hon. and gallant Member.

Is it the Government's intention to allow these questionable conditions in this industry to continue? Do the Government intend to do anything to regulate this industry?

I have just told the hon. and gallant Gentleman the Member for Central Hull (Lieut.-Commander Kenworthy), who sent to me certain particulars yesterday, that I will cause inquiries to be made into the matter, but until they have been made I cannot say anything further.

Is the right hon. Gentleman aware that if the men joined the trade union that body would soon put these things straight?

The right hon. Gentleman admits the necessity of keeping the atmosphere at a fairly high temperature, but, if the inspector's report is correct, it means that the air which is coming in to take the place of that which is going out must be fetid. Will the right hon. Gentleman find out if that is the case?

The whole question is one of ventilation, and on that I will cause inquiries to be made.

Factory Inspectorate (Committee)

asked the Home Secretary if he can state the names of the members of the Committee which is to inquire into the questions arising from factory inspection; when they propose to start on their task; how long the inquiry is likely to last; and what parts of the country it is proposed to visit.

I am not yet in a position to announce the names of the Committee on the Factory Inspectorate, but it is proposed that they shall commence their work in the autumn. I cannot forecast how long it will take, or anticipate what arrangements they may find it necessary to make for the purposes of their inquiry.

Is the right hon. Gentleman aware that this is really a breach of what he has already stated. In a previous answer, he stated that it was the intention of this Committee to start to work the moment that Parliament rose, and, in view of that fact, cannot he expedite this inquiry?

Will my right hon. Friend promise us from Lancashire that a man with full knowledge of the textile trade shall be appointed to this Committee of Factory Inspection?

Yes, I think that I can promise that, but the hon. Member will give me a few moments to consider it. I am engaged now in preparing the Committee. I nominated the Chairman only yesterday, and I will do my best to expedite this matter.

This is very lax. I wish the right hon. Gentleman was as smart about this as he is about the police.

Domestic Servants

asked the Home Secretary if he will state what is the total number of convictions for stealing against domestic servants within the Metropolitan Police area during the year ending 30th June, 1928; and how many of the said domestic servants were Welsh girls domiciled in Wales prior to their employment as domestics in the said police area?

Is the right hon. Gentleman aware of the allegations which are repeatedly made in the Press and by certain magistrates about Welsh girls, and are these not taken as a reflection upon Welsh people generally? As these allegations are repeated from time to time, it is important that we should get some definite data, and will the right hon. Gentleman make inquiries?

There is no distinction made when a girl is prosecuted or appears in the Police Court whether she is Welsh, English or Scottish.

Will the right hon. Gentleman draw the attention of the magistrates who make these remarks to that fact?

Cannot the right hon. Gentleman exercise some little control over the statements made by magistrates which are entirely irrelevant to the cases which come before them?

I am sure that the hon. Member would be the last person to give me control over the judiciary.

Is it not possible for the right hon. Gentleman to draw the attention of the chief magistrate at Bow Street to the manner in which some magistrates make references to the nationality and probity of these girls?

Ethyl Petrol

asked the Home Secretary whether his attention has been drawn to the findings of the Government Committee on ethyl petrol; and does he propose to introduce legislation which will prohibit the use of this spirit for the purposes of cooking and cleaning?

I have been asked to reply. The answer to the first part of the question is in the affirmative. As regards the second part, the Committee state in paragraph 35 of their Interim Report that they do not recommend any legislation for the purpose of preventing the use of ethyl petrol otherwise than as a motor fuel so long as the terms of the contracts between the proprietors of the fuel and the retailers which are now in force in this country are maintained. These terms. are designed to prevent such use.

Is it not a fact that ethyl petrol is very dangerous, and does not the right hon. Gentleman think that some protection ought to be given for the rest of the public who do not use it?

I take the opinion of the Committee that the forms of the contract in force do safeguard the interests of the public.

Missing Women, London

asked the Home Secretary the number of notifications that have been received by the Metropolitan Police during the six months ended 30th June, 1928, of women who have disappeared from their homes?

During the six months ended 30th June, 1928, 2,310 females were reported as missing, of whom 2,202 were traced or were reported to have returned.

Aliens (Deportation)

asked the Home Secretary whether his attention has been called to the conviction of Zelman Geer at the Westminster Police Court on 23rd July on the charge of being found in this country while a deportation order was in force against him; whether such orders are of a permanent effect or whether they are made for varying periods; and whether, in view of the cost of keeping such persons in prison for lengthy periods prior to their re-deportation, he will consider the possibility of arranging for all undesirable aliens convicted of some offences to be deported forthwith?

Yes, Sir; I am aware of the circumstances of the case mentioned in the first part of the question. As regards the second part, a Deportation Order made against an alien remains in force unless and until revoked by the Secretary of State. As regards the third part, if the suggestion of my hon. and gallant Friend is that the penalty of imprisonment should be abolished, or that the imposition of sentences of imprisonment should be disregarded, in the case of aliens who are sufficiently undesirable to be deported, I am afraid that I cannot share his view.

That is not my desire. I am sorry that my right hon. Friend has misunderstood me. My desire is that there should not be expense in keeping these people in prison, and that they should be sent back to the country to which they belong. We do not want them.

I think I have not misinterpreted my hon and gallant Friend. When an alien commits a crime, he must be punished here before he is sent back to his own place. We cannot let an alien off punishment.

We can clear him out at any time, but, having been convicted of a crime and sentenced, he must undergo his sentence before deportation.

Prisons (Vegetable Supplies)

asked the Home Secretary whether the potatoes and vegetables purchased for the prisons and institutions under his supervision from British contractors are grown in this country; and, if not, if he will have inquiries made as to how much foreign produce is being supplied?

A considerable proportion of the potatoes and vegetables consumed in His Majesty's prisons is grown in the prisons themselves. When purchases are made from outside preference is given to home-grown produce, except during the period April-July, when owing to the scarcity of supplies and high prices of home-grown produce it is often necessary to purchase foreign produce.

Education

School Leaving Age

asked the President of the Board of Education if he proposes to introduce legislation dur- ing the next Session of Parliament to raise the school age of the elementary schools from 14 to 15 years of age?

Does not the Noble Lord agree with me that an increase in the school age would mean that the children who are now kicking their heels about the streets would receive an education and that it would be a great help in reducing the number of the unemployed?

That is a question which has been discussed on many occasions, but I do not think that Question Time is the proper time to discuss it.

Technical Education (Advisory Committees)

asked the President of the Board of Education whether he can now give the names of the committee he is setting up to inquire into education for salesmanship.

asked the President of the Board of Education whether he can now make any statement as to the proposed committee on education for salesmanship and as to the other inquiries into different aspects of technical education which he foreshadowed in his reply to the Emmott Committee?

I hope to begin the new series of reports on education for commerce and industry by the publication of an introductory survey in October. I have not yet finally completed the constitution of the advisory committees in connection with the two special inquiries on training for salesmanship and engineering, but I am glad to be able to announce that Mr. F. W. Goodenough, C.B.E., chairman of the British Commercial Gas Association, has consented to be chairman of the former, and Sir Dugald Clerk, K.B.E., of the latter. The committees will consist of representatives of trade and industry associated with teachers and professors in technical colleges and universities and I hope that they will be, as far as possible, fully representative of the various branches of trade and industry with which they will be dealing. I have also invited the various associations of local education authorities to appoint representatives as members of a panel for the purpose of advising on the administrative aspects of technical education. The actual investigations will be carried out by selected inspectors of the Board and the committees will be mainly concerned to advise on the scope and methods of the investigations and to review and comment on the findings. As regards the regional inquiry into the organisation of technical education in the Midlands area, the Board's inspectors have just completed a survey which will, I hope, form the basis of discussions with the local authorities and schools in the area, on the one hand, and on the other, with organisations of employers and workers concerned.

Is the Minister aware of the fact that the commercial travellers of the country are very much concerned about the training of salesmen, and may I ask whether their union or association is to be represented on the committee?

I must ask for notice of that question. I will try to see that the committee is fully representative.

Singing and Music

asked the President of the Board of Education whether, with regard to methods of teaching singing. and music in grant-aided schools under the inspection of the Board, the Board are in favour of the staff notation or of the tonic-sol-fa notation; and whether the Board proposes to interfere in questions of teaching method by showing preference either towards the use of the staff notation or the tonic-sol-fa notation in schools?

As regards the first part of the question, perhaps I may refer the hon. Member to what is said on this subject in Chapter VII of the volume of "Suggestions for Teachers." As regards the second part, the Board's attitude towards particular methods of instruction is the same in the case of music as in that of any other subject of the curriculum.

Uncertificated and Supplementary Teachers

asked the President of the Board of Education whether the Board has any figures as to the number of teachers recognised, respectively, for the first time as uncertificated teachers and supplementary teachers during each of the last three years?

As regards uncertificated teachers, I would refer the hon. Member to Table 100 on page 208 of the Statistics of Public Education for 1926-27, and, as regards supplementary teachers, to the reply given by me on the third of this month to the hon. Member for Houghton-le-Spring (Mr. R. Richardson), a copy of which I am sending him.

School Accommodation, Castlenau, Barnes

asked the President of the Board of Education whether he is aware that there is not sufficient school accommodation for the children living on the London County Council estate at Castlenau, Barnes; that the existing council school for junior pupils is full and has a waiting list of over 100 children; that the only other available accommodation is in a school about two miles away from the estate and that children attending must cross a main road to reach it; and whether any consultations have taken place between the local authority and his Department respecting the provision of temporary school accommodation?

I am aware of the position as regards school accommodation on this estate. In May last the Board approved plans for the provision of a permanent school for 384 children and last Monday they approved plans for the immediate provision of a temporary building for 150 children, pending the completion of the permanent school.

Poor Law

Asylum Patients (Personal Property)

asked the Minister of Health whether he is aware that it is the custom of many boards of guardians to dispose, after three years, of the belongings of asylum patients which have been committed to their care and to offer to patients on their discharge wearing apparel and other effects belonging to others; and will he issue an Order discountenancing such practices?

I am not aware of the existence of such a practice, but I shall be glad to inquire into any case which the hon. Member has in mind.

Bedwellty, Chester-Le-Street, and West Ham

asked the Minister of Health whether, when they expire, he proposes to renew the orders he made appointing commissioners to take the place of the elected guardians in the Bedwellty, Chester-le-Street, and West Ham Unions, in view of the fact that elections have taken place in each of the areas named and have shown that the electors disapprove of his policy?

I cannot undertake to forecast the action which I shall take in December next when the present term of office of the appointed guardians in these unions expires.

Why does not the right hon. Gentleman reply to the letters from the Clerk of the Rural District Council of Chester-le-Street?

Is it not a fact that the ratepayers who find the money thoroughly approve of these commissioners?

Is the right hon. Gentleman not aware that I have written to him on the matter and that he persistently refuses to answer?

It may have escaped my recollection. I have a good many things to recollect.

If I write to the right hon. Gentleman again will he undertake to look into the matter?

Casuals

asked the Minister of Health whether he can state the number of workhouses that do not provide nightshirts for casuals; and what action he has taken to see that the local authorities provide them?

I am afraid accurate statistics are not available, but the number of cases must be very small. The matter is one which my officers have instructions to deal with in their inspections of the casual wards.

Is it not the fact that in one casual ward his officers asked the guardians to supply 100 nightshirts and that they only supplied 48. Can he say what happened to the rest of the night-shirts?

National Health Insurance

asked the Minister of Health what system is adopted by the Government actuary in order to arrive at the Central Practitioners' Fund, and the amounts credited for the year 1927 in respect of the following: actual stamps accounted for on contribution cards surrendered; stamps sold but not accounted for on contribution cards; and the periods of eligibility for medical benefit when no contributions are payable consequent upon unemployment, illness, insured persons over 65 years of age, and other causes, respectively?

The principles of the system adopted by the Government actuary in determining how he will advise me on these matters are described and discussed in reports made by an independent actuary to a body representative of the general body of insurance practitioners in 1919, 1920 and 1922, which are readily accessible.

I think that what was said was that there were certain respects in which it could not attain at the present moment its ultimate form, but the general principles upon which it is based can be deemed to be permanent.

Local Government (Reform)

asked the Minister of Health when he proposes to consult with representatives of the local authorities regarding his local government proposals: and what form those consultations will take?

I have not specified any particular date or method of consultation with the associations of local authorities, and will endeavour, so far as the circumstances admit, to suit their convenience in these respects.

Can the right hon. Gentleman say whether those who will take part in these consultations will have before them the opinions of the Royal Commission who are considering the matter?

Can the right hon. Gentleman say when the Royal Commission is likely to report?

I should not like to be taken as pledging myself to a particular date. The Royal Commission will consult their own convenience in the matter, but I am given to understand that in all probability their report will be published before the House meets again.

Will the right hon. Gentleman consult local authorities, and particularly the London County Council, before he proposes legislation?

asked the Minister of Health whether, under the de-rating proposals of the Government, where a rural district council have proved themselves efficient and capable in the administration of the highways under their control, they will be allowed to continue such administration under the county council acting as the financial authority?

I have been asked to answer this question. I would refer my hon. and gallant Friend to paragraph 14 of the published memorandum on the proposals for the reform in local government which has been circulated to local authorities and is to form the basis of discussion with their associations.

May I ask whether the White Paper did not suggest that all highway administration in rural areas is to be taken away from rural councils and handed over to the county council?

Yes, but it also says that consideration will be given to the question as to what other authorities should be given the care of these roads where it is justified by considerations of efficiency and economy.

Has the right hon. Gentleman received strong protests from the Rural District Councils' Association on this matter?

Government Departments

Government Chemist (Fees)

asked the Minister of Health whether the fee charged by the Government analyst has recently been raised from one guinea to two guineas; and whether, as this charge is altogether out of proportion to the work involved and is likely to cause the denial to some individuals of the right to appeal under the Sale of Food and Drugs Acts, he will consider the reduction of this fee?

The fee charged by the Government chemist for the analysis of samples submitted to him under the Sale of Food and Drugs Acts was increased on 1st April, 1927, from one guinea a sample to two guineas. I am advised that the existing fee is amply justified by the work involved, and that there is no reason to suppose that its retention will have the effect suggested in the second part of the question.

May I ask whether the Financial Secretary will not reconsider the matter, as there are a large number of traders who will be denied the right of appeal because of the fees that have to be paid?

I do not take that view. The Government chemist is regarded as a referee, and it is absolutely necessary that he should have accurate and experienced assistants. For the work they do the fee is only just adequate.

Board of Agriculture, Scotland

asked the Secretary of State for Scotland on what date the resignation of the member of the Board of Agriculture for Scotland responsible for the Agriculture Division will take effect; and what arrangements have been made for the discharge of the duties of that post pending the reorganisation of the Department under the Re-organisation of Offices (Scotland) Bill?

Mr. Wood, the member of the Board to whom the hon. Member no doubt refers, retired as from 30th June last. His duties as a member of the Board are discharged ay the remaining members pending reorgani-sation.

Subsidy Houses (Garages)

asked the Minister of Health whether local authorities are permitted by his Department to provide subsidy houses with garages?

The regulations governing the grant provide that houses eligible for subsidy may not contain or be constructed for occupation with a garage.

Tuberculosis (Efford Colony)

asked the Minister of Health whether, seeing that the British Legion has recently contributed £500 towards the scheme for the assistance of tuberculosis cases at Efford Colony, Plymouth, he will say whether his Department is also prepared to give some financial assistance?

There are no funds at my disposal from which financial assistance could be given to this colony.

Do not the Government give these grants in some cases? Did they not give a grant to Preston Hall?

Yes, I think a grant was given to Preston Hall, but that was an exception.

I was able to get a contribution for that purpose, but I cannot do it for everybody.

Income Tax

asked the Chancellor of the Exchequer if it is by his orders, or with his knowledge, that Income Tax collectors began, on 26th July, to send out documents requiring the payment of the tax due on 1st July within 10 days; and, if not, will he notify such collectors to allow reasonable time for payment before. sending out such second summonses?

I cannot follow my hon. Friend in reflecting, as he appears to do, upon the action of the collectors. The tax in question would be the second instalment payable for last year, and the law requires it to be paid on or before the 1st July. I do not think that it is unreasonable for the taxpayer to be reminded of this obligation when it has remained unfulfilled for over three weeks after the due date.

Railway Freight Relief (Coal)

asked the Chancellor of the Exchequer if he can give any estimate of the amount of money which will be paid and the number of tons of coal due to freight relief on 1st December, 1928, through being carried over public railways in Durham County; and can he say the number of tons of coal which will not receive freight relief through being carried over private railways in the same county?

I have been asked to reply. I regret that I cannot at present give any estimate of the amount of relief to be given in any particular district, nor have I any official information as to the quantity of coal carried on private railways.

Are we to understand that the Government have no estimate as to what each district will receive out of this £4,000,000?

No, Sir. I have said that I cannot give an estimate of the amount to be given in any particular district. The hon. Member will realise that before the question is raised in the autumn it will be my duty to provide details of the whole matter.

Can we have an assurance that coal carried on private railways will be treated in the same way as coal carried on other railways?

That does not arise on this question. Private railways are treated as industrial hereditaments.

That is precisely the question that does arise, and I am asking for an assurance that private railways will be treated in precisely the same way as other railways.

May I ask whether the fact that private railways are treated as industrial hereditaments does not mean that they do not get the benefit of rating relief until October, 1929, while coal carried on public rail-ways will get the benefit this year?

That was stated in answer to a question the other day, and therefore their relief will not come into force before October of next year.

Is the Secretary for Mines aware that in the County of Durham a very large amount of coal is carried by private companies, associated with certain colliery companies, and that they will receive no measure of relief until 12 months after all the other collieries?

May I ask if the Secretary for Mines is aware that the largest exporters of coal in Durham carry their coal over their own railway and will, therefore, get no relief until next year?

I am not aware that the largest amount of export coal is carried over private railways. I know that a considerable amount is so carried,

May I call the hon. and gallant Member's attention to the fact that Lambton Hetton and Joicey Withers, Limited, carry all their coal over their private railway, and they are probably the largest exporters of coal in Durham?

asked the Chancellor of the Exchequer if the reduction in railway rates for the transport of coal arising out of the relief of rates to railway companies will apply to bunker coal for the use of fishing vessels?

I have been asked to answer this question. I would refer my hon. Friend to the reply which I gave yesterday to a similar question asked by the hon. and gallant Member for Central Hull (Lieut.-Commander Kenworthy).

Betting Duty

asked the Chancellor of the Exchequer if he is aware that a limited company has been registered as a pari-mutuel company to carry on the business of betting; and whether it will be required to pay the Betting Duty?

I do not think that arises out of the question. It has been covered by the general declarations which have been made in the course of the Debates.

Is there not a difference between a limited company and a private company? A limited company is registered under the Act, and there are a number of shareholders. Are they to be liable for the debts?

Does it mean that the right hon. Gentleman has now come to an agreement with the Jockey Club and other interests as to the rate to be paid to the Treasury for the totalisator?

May I ask whether the rate of duty included in the prospectus of the company, 3½ per cent., is the rate of duty agreed on?

No, Sir. I have been asked whether I have heard of a company having been formed, and I have said, "Yes." I have been asked whether it will be required to pay the Betting Duty, and I have said, "Yes."

Safeguarding of Industries

Ministers' Speeches

asked the Prime Minister whether his attention has been called to the speeches of the Chancellor of the Exchequer and the Secretary of State for the Home Department on Saturday last with reference to the safeguarding of industries; and whether either of these speeches represents the policy of the Government?

:I am obliged to the hon. Member for the opportunity his question has afforded me of studying carefully a number of interesting and eloquent speeches which I might have overlooked at a period of the Session when the pressure of work is at its greatest. The paragraph on page 1228 of the OFFICIAL REPORT in the speech of the Chancellor of the Exchequer—I may observe that the word used in line 29 was "protective" and not " productive " —appears to me to state less tersely but more eloquently the policy which I laid down in my Election Address of 1924. In the Home Secretary's speech at Romsey I am unable to find any definition of policy but rather a number of pertinent questions to which he did not provide answers but said with truth that they were worthy of consideration. I must frankly confess that after such examination of these speeches as I have been able to give, not in fragments, but as a whole, I am struck not so much by the diversity of testimony as by the many sidedness of truth.

In view of that most interesting and light-hearted reply, may I ask the Prime Minister whether he will kindly answer the question The question is whether either of the speeches referred to represents the policy of the Government; and will the Prime Minister call to mind the repeated declarations of members of his Government, when they were in opposition, that collective responsibility must be observed by Members of the Cabinet?

If the right hon. Gentleman will do me the honour to read the answer I have given, he will find that those two points are specifically answered. I said, if I may condense my observations, that the Chancellor of the Exchequer's statement, in the speech to which I referred, appeared to me to describe exactly the policy of the Government as laid down at the General Election. In the Home Secretary's speech, I discovered no trace of policy at all.

May I ask the Prime Minister whether, if the statement of the Chancellor of the Exchequer was a statement of the Government's policy, and that, as he said, in the official sphere we ought not to contemplate any fundamental reversal of the fiscal system, we are to infer from the Home Secretary's speech at Romsey that he does not agree with that, but desires a duty on the fundamental industry of iron and steel?

I cannot follow the hon. Member in inferences. I have answered perfectly plainly the question directed to me, and I must say that I feel rather flattered that the hon. Gentleman should look to us for a far greater degree of political unity than is to be found on either of the benches opposite.

Are we, therefore, to take it that the incidents are closed but the issue remains?

Do we understand that the Prime Minister said that the Home Secretary's questions were pertinent or impertinent?

May I ask my right hon. Friend whether there is probably not a great deal of confusion owing to the fact that the Leader of the Liberal party invented the word "safeguarding" a few years ago?

Is the Prime Minister aware that in one of the industries at the back of the Home Secretary's mind, namely, pig iron, there has been a reduction of 300,000 tons in the imports for the six months ended June, 1928, as compared with the six months ended June, 1927?

When the Prime Minister speaks of the many-sidedness of truth, would he mind saying on which side the truth stands? Is he continuing the policy for which he was returned to power at the last election, or is he preparing to support the Home Secretary in a fundamental alteration of that policy?

Has the Prime Minister consulted the two right hon. Gentlemen beside him in regard to the answer which he has furnished to the House tot day, and will he say whether that represents complete agreement in the Cabinet?

In view of the great uncertainty about the position in some of the industries that are asking for safeguarding, may I ask whether the Government are now, in accordance with the statements of Ministers, giving specific consideration to an extension of the safeguarding procedure and an alteration of the present rules of procedure, and, if so, when an announcement is likely to be made?

That goes far beyond the scope of the question. I do not agree with the hon. Member that the state of doubt and uncertainty to which he alludes exists to the extent that he desires it should.

In view of the general harmony which has now been re-established on the other side, may I ask the Prime Minister whether there will be any annulment of the recent sentence passed on the hon. Member for Barnstaple (Sir B. Peto)?

Iron and Steel Trades

asked the Prime Minister whether the Government will advise the appointment of a Royal Commission to inquire into the question of applying the Safeguarding of Industries Act to the iron and steel trades, with a view to determining the effect of foreign competition in those trades in this country and the extent to which that competition is facilitated by the lower wages and longer hours observed in the competing countries?

As my hon. and gallant Friend will remember, the whole question was carefully examined in 1925 by the Committee of Civil Research, and I announced the Government's decision in reply to a question in Parliament on the 21st December, 1925. The Government adhere to the decision then reached, and do not think that any useful purpose would be served by the appointment of a Royal Commission at the present time. I would only add this. In the statement referred to above, I stated that the Government would keep these industries under close observation with a view to promoting their well-being should any other measures be deemed desirable. The Government's proposal for the relief of industry from rates will be an appreciable factor in reducing overhead costs in the iron and steel industry; while the proposal to concentrate the railway freight relief of coal, on coal for iron and steel works and for export, and to bring the freight relief into force on the 1st December next, will also tend to improve the competitive position of this basic industry.

Is the Prime Minister aware that, so far as pig iron is concerned, there has been a reduction in imports of 300,000 tons in the first six months of this year compared with the first six months of 1927; is he further aware that, so far as steel and iron are concerned, there has been a reduction in imports in the same period of 1,500,000 tons; and is he aware that exports have been going up?

Are we now to assume from the Prime Minister's reply that the Government have not only decided not to apply safeguarding to iron and steel now, but that they do not propose to include the safeguarding of it in the proposals for the next election?

I think that the hon. Gentleman is premature in eliciting information out of a question that affords him too slender a foundation.

Does the Prime Minister accept the statement that the competing countries have lower wages and longer hours, and ace these countries not Protectionist with regard to iron and steel?

Is it not an acknowledged fact that in many of the Continental countries longer hours are worked and much smaller wages are paid than in this country?

Army and Navy Officers (Retired Pay)

asked the Prime Minister whether he is aware of the disparity between the retired pay of permanently commissioned officers of the Army and that of Royal Marine and Naval officers promoted from the ranks during the War; that many officers of the latter class are suffering serious financial hardship; and whether he will examine the position and consider the possibility of introducing some equalising proposals?

I have been asked to reply. This question has been fully considered on more than one occasion, and my right hon. Friend sees no ground for reopening it.

Horses (Export)

asked the Minister of Agriculture whether persons consigning live horses for shipment abroad for slaughter have to make a declaration that the horses are exported for slaughter?

I have been asked to reply. The answer is in the negative, but the Ministry's Inspectors who examine the horses at the ports before shipment are instructed to ascertain as far as possible the purpose for which each horse is exported.

Is there any register kept, in order to differentiate as to whether horses are exported for work or for slaughter?

The information is found out in a very great number of cases. For instance, in the first six months it has been ascertained that 77 horses were exported for slaughter to France and 940 to Holland.

Foot-And-Mouth Disease

asked the Minister of Agriculture if the proposed research is being made into the effect of feeding pigs upon the refuse of imported chilled beef from the Argentine in order to test further the allegation that foot-and-mouth disease can be transmitted to British herds through pig food?

I have been asked to reply. My right hon. Friend has nothing to add to the replies given to my hon. Friend on the 19th July and the 23rd April last.

My right hon. Friend said in his reply of 19th July that he had conveyed the suggestion of my hon. Friend to the Foot-and-Mouth Disease Committee, but that he was not going to dictate to that Committee what they were to do in the matter, and he is still of the same opinion.

asked the Minister of Agriculture the present position of foot-and-mouth disease in the country?

No outbreak of foot-and-mouth disease has occurred in any part of Great Britain since the 15th July. There were three connected cases near York on the 11th, 12th and 15th July respectively, for which no origin has been discovered. Prior to the first mentioned of these dates, no cases had been confirmed since 21st May.

Kenya

asked the Secretary of State for the Colonies what are the boundaries of the 850,000 acres of land in Northern Laikipia which the Kenya Government is proposing to lease to Europeans; whether this area includes the Loroki hills; and what proportion of this land is occupied by natives?

The area in question is bounded on the west, north and east by the Baringo and Turkana Districts and by the Northern Frontier Province; on the south it adjoins the settled part of the Laikipia District. According to the maps in my possession, the Loroki hills are not in this area, but lie to the north of it in the intermediate area to which, pending further inquiry, the Samburu are to have access. I understand that there may have been some scattered groups of the Samburu in the area to which the hon. Member refers, but I am unable to say exactly what their numbers may have been.

Will the right hon. Gentleman answer the last part of the question, as to the land occupied by natives?

But is the right hon. Gentleman aware that the natives of Kenya live in scattered groups; and is this not a clear case of another alienation?

Will the right hon. Gentleman see that small areas of this land are available for leasing to settlers on the spot, instead of being handed over to big companies?

Canadian Harvest (British Miners)

asked the Secretary of State for Dominion Affairs if arrangements have now been completed with the Canadian Government for 10,000 harvesters to proceed to Canada; how many of those are to be ex-miners; and what proportion of those who went out in previous years as harvesters did well and are now settled in Canada?

asked the Secretary of State for Dominion Affairs if he has yet come to any arrangement regarding the sending of 10,000 men to Canada to do harvest work; if so, can he state the conditions; and, if not, does he propose to make a statement before the House rises?

May I point out that the first part of Question 55 was answered yesterday, but I should be obliged if the right hon. Gentleman will answer the last part of it?

I was going to say that the first part had been answered yesterday in a reply given, to the hon. Member for Rothwell (Mr. Lunn), to which I would refer both my hon. Friend and the hon. Member for Gorbals (Mr. Buchanan). With regard to the last part of the question of my hon. Friend, approximately 12,000 men proceeded to Canada in August, 1923, for harvest work. Of these, about 700 were found unfit for farm work and repatriated. Every effort was made by the Dominion authorities to find permanent work for the harvesters. It was estimated that about 11,000 men remained in the Dominion, and it may reasonably be assumed that the majority are settled in the Dominion.

Do I understand the right hon. Gentleman to say that all these arrangements are completed now?

We are only awaiting the confirmation of the Dominion Government in regard to the co-operation of their medical officers.

Can we have an assurance from the right hon. Gentleman, of as definite a character as possible, that in the event of these men failing to obtain work after having sought for work in Canada, and after having been there for some time, arrangements will be made to send them home under the care of the Government?

Every arrangement will be made by the railway companies and the Canadian Government to endeavour to find these men employment at the end of their employment as harvesters, if they wish to remain. If they wish to come home, they are to receive the advantage of reduced passages, and, of course, if there are cases of special hardship they will be looked into with a view to dealing with individual cases.

If a man remains in Canada for two or three months after the end of the harvesting season, and then endeavours to return home, having failed to obtain the necessary work, will that arrangement still obtain?

If a man who has been out, say, in 1923, and who has had an assisted passage then, desires to go out again, is he eligible under the present scheme

I think that, normally, assisted passages are not given to people who have had the advantage of them before, or who have been resident in the Dominion before, but I imagine that that particular difficulty will not arise at present.

The right hon. Gentleman cannot be expected to answer hypothetical questions.

I am sorry to press the right hon. Gentleman on this matter, but, in view of the statements which one sees on this subject, are we to take it that all arrangements have been made for the passages of these men with the shipping companies and that the only matter outstanding now is that the men have to be passed by the medical officers?

The answer given yesterday shows that all arrangements as far as the shipping companies and the railways are concerned have been settled and we are awaiting only the final confirmation of the Dominion Government with regard to the co-operation of their medical service.

That depends to some extent on the men who turn up, but arrangements have been made to give the greatest possible facilities to recruit men in the mining districts, and the Dominion Government have expressed their desire to receive miners.

Are we to take it that people who may have had assisted passages before will not be disqualified?

Empire Marketing Board

asked the Secretary of State for Dominion Affairs whether, in view of the lack of substantial progress made by the campaign of the Empire Marketing Board among purchasers of smaller means, any developments are proposed by the Board with the object of increasing the demand for Empire goods by that class of the population?

I am not prepared to accept without very considerable qualifications the suggestion made by my hon.

Friend in the first part of his question, The Empire Marketing Board are, however, considering carefully how their campaign can best be developed in the direction indicated, and will in this connection take careful account of the suggestions recently made by the Select Committee on Estimates.

Having regard to the great success of the Empire Marketing Board, will the right hon. Gentleman do what he can to expedite this point as advocated by the expert committee to which he referred?

asked the Secretary of State for Dominion Affairs what is the proposed expenditure of the Empire Marketing Board on cinema-film production; what are the subjects of the proposed films; and whether he is satisfied that the Board has at its disposal, or can obtain at reasonable cost, the technical skill to warrant it embarking upon; an enterprise of this kind?

The expenditure so far authorised on the advice of the Board for cinema, activities in the current financial year is £7,500. This includes a number of miscellaneous activities. I am not yet in a position to say what sum is likely to be expended on production. Plans have been prepared for the production on behalf of the Board by a producing firm of a short film on the herring fishery, and a further film of more general Empire interest is being planned with a view to its production by like methods. I am satisfied that under the production arrangements contemplated for these experiments the requisite technical skill will be forth. coming at a reasonable cost.

Have the services of the Financial Secretary to the Treasury been asked for in regard to this matter, as he is an expert on this subject?

I believe that my hon. Friend has already placed some of his valuable information at the disposal of the Board.

Hyde Park (Illumination)

asked the Under-Secretary of State for the Home Department, as representing the First Commissioner of Works, whether he has taken steps for the better regulation and illumination of Hyde Park after nightfall; if so, what are they; and what other steps are in contemplation?

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

The existing Regulations for Hyde Park were revised last year and laid before Parliament in accordance with the Act. No further revision of these Regulations; is in contemplation. With regard to the illumination of the park, I would refer the hon. Member to the answer which I gave to a similar question on 18th June last.

Is the hon. and gallant Gentleman aware that the answer was that the matter was under consideration, and has any conclusion been reached on the matter?

Botanic Gardens, Edinburgh

asked the Under-Secretary of State for the Home Department, as representing the First Commissioner of Works, if he is aware that the Botanic Gardens, Edinburgh, are used by a number of people who pass through them to get a shorter route to various parts of the city; and that handbags, etc., must be left at the gate; and if he will be prepared to recommend the relaxation of this rule in the case of through passengers who are at present inconvenienced by the rule?

I am making inquiries into this question and will communicate with the hon. Member as soon as possible.

Post Office

Life Insurance Service

asked the Postmaster-General whether, in view of the small amount of new business in each year and of the more attractive conditions offered by insurance companies, he proposes to discontinue the life insurance service of the Post Office?

The Government have this matter under consideration. I am not yet in a position to make any statement. If the service is discontinued, legislation will probably be necessary to provide for outstanding liabilities.

Will the Noble Lord's Department, instead of discontinuing this service, consider the advertising of the facilities, because, as a matter of fact, no one knows that they exist, and, therefore, the business goes to private enterprise companies? Would not many people gladly take part in these facilities if they knew that they existed?

These facilities have been in operation for many years, and notices about them are displayed in all post offices. If the hon. Lady can help in giving publicity to the matter, we shall very much appreciate her assistance.

Will the Noble Lord consult the admitted experts of the Empire Marketing Board as to how to advertise these Government facilities?

I do not think that this is a matter which comes within the scope of the Empire Marketing Board.

Automatic Telephone Exchange, Sedding Street

asked the Postmaster-General whether the company by which the equipment of the new automatic telephone exchange in Sedding street has been installed is a British company and, if not, whether British companies were invited to tender, and for what reasons their tenders were not accepted.

The answer to the first part of the question is in the affirmative. The other questions accordingly do not arise.

Unemployment

Relief Work (Local Authorities)

asked the Minister of Labour whether his attention has been called to a decision given in the King's Bench Division that men employed on relief work in Leeds under the alternate-week system devised by the Poor Law authorities and the corporation were not entitled to unemployment benefit; if he is aware that the decision will prevent boards of guardians and local authorities co-operating for the purpose of finding useful work for those in receipt of Poor Law relief; and if he intends taking any action in the matter.

This decision was not that the men were not entitled to unemployment benefit but that unemployment insurance contributions were not payable in respect of the work on which they were engaged. Its effect therefore was to relieve the Local Authority of the expense of paying these contributions, or the employers' share of them, and it should therefore help rather than hinder any Authority which is legitimately desirous of providing relief work of the description here in question.

Benefit Disallowed

asked the Minister of Labour the number of men and women, respectively, whose claims to unemployment benefit were disallowed last month who were unable to satisfy the 30 contributions condition, and the number of those whose claims were disallowed during this period who ceased to sign at the employment exchanges.

The condition requiring the payment of 30 contributions in the previous two years applies at present only in the case of applicants for unemployment benefit who are under 18 years of age, and during the four weeks ended 9th July, 1928, the claims to benefit of 40 boys and 32 girls were disallowed by the Insurance Officers on that ground. Statistics are not available regarding the number who, having been refused benefit, ceased to attend at employment exchanges.

Will the hon. Member consider taking, say, six exchanges and getting to know from them the number of people whose claims have been refused, and who have ceased to sign, as that information would be very valuable?

I will consider whether any practical steps are possible in the direction mentioned by the hon. Member.

But is the hen. Gentleman aware that the statutory benefit does not apply only to people of 18 years of age, but also to married men?

The question refers to the 30 contributions condition, which does not come into force, except in regard to juveniles, until next year.

Legislation

asked the Minister of Labour whether he is considering the introduction of amending legislation of the Unemployment Insurance Act, 1927, in view of the increase in the volume of unemployment?

Is the hon. Member aware that when that Act was being passed the figure on which it was based was 6 per cent. of unemployment, and that he said that if there was an increase in unemployment the Government would introduce amending legislation?

The hon. Member really must not expect me now to forecast any legislation which may be introduced in the future.

But when the Bill, before it was an Act, was before the House in Committee, did the Minister not give a pledge that the Government would introduce amending legislation if the figure of 6 per cent. was falsified; and is he going to do nothing in connection with this matter, in view of the hardship on so many people?

I am quite sure that any pledge given by my right hon. Friend will be kept, but, when the hon. Member asks me whether I am considering the introduction of amending legislation, it is quite clear that no legislation can be introduced this Session, nor am I in a position to forecast legislation for next Session.

Middlesbrough

asked the Minister of Labour whether he is aware of the increase in unemployment in Middlesbrough because of the further closing down of blast furnaces; and whether, in view of the rapid development of industries on the north bank of the Tees, be will consider the furthering of the project of a bridge over the Tees, as a means of providing employment for local labour and for facilitating the employment of Middlesbrough labour in the north bank works?

I have been asked to answer this question. I am aware of the unemployment prevailing in Middlesbrough, and I have recently been supplied with a copy of the report made to the Durham County Council by the firm of consulting engineers who have been studying the proposal for the erection of a new bridge over the Tees. I gather, however, that the local authorities concerned, before proceeding further with this project, desire to consider an alternative proposal for building a tunnel. An officer of my Department has been instructed to attend the conference convened for the discussion of this scheme, and I hope shortly to receive a report thereon. Meantime, the hon. Member will not expect me to express an opinion on either of the alternative proposals.

International Labour Conventions (Northern Ireland)

asked the Minister of Labour whether the British Government is answerable to the League of Nations in respect of the application of International Labour Conventions affecting Northern Ireland?

I would refer the hon. Member to the reply given by me to a similar question asked by the hon. Member for South Leeds (Mr. Charleton) on 25th July.

Trade Boards Act (Catering Trade)

asked the Minister of Labour if he is aware that in London and also in certain provincial towns girls employed as waitresses in hotels and restaurants are often called on to work 70 and 80 hours per week for very small wages; and if he will consider holding an inquiry into this with a view to bringing this class of workers within the scope of the Trade Boards Act?

If the hon. Member has information respecting hours and wages in licensed hotels and restaurants, I should be prepared to consider it. With regard to the non-licensed catering trade, and also in regard to the last part of the hon. Member's question, I would refer him to the reply given to the right hon. Member for Central Edinburgh (Mr. W. Graham) on the 11th February, 1926, of which I am sending him a copy.

Does not the Minister realise that the information that he says

he has not got is in the hands of the Employment Exchange people?

No, I am not at all prepared to say that any information that is in the hands of the Employment Exchange people is not in the possession of my right hon. Friend.

Business of the House

May I ask the Prime Minister if he can state what business is to be taken following the discussions on the Consolidated Fund (Appropriation) Bill, and whether he can announce the date on which the House will assemble for a new Session?

The business for to-day, beside the Consolidated Fund (Appropriation) Bill, will be the consideration of any Amendments that may come down from another place on the Companies Bill.

With regard to next Session, it is proposed to begin on the 6th November.

Motion made, and Question put,

"That the Proceedings on Government Business be exempted, at this day's Sitting, from the provisions of the Standing Order (Sittings of the House)."—[ The Prime Minister. ]

The House divided: Ayes, 153; Noes, 63.

NOES.

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

Greenwood. A. (Nelson and Colne)

Richardson, R. (Houghton-le-Spring)

Ammon, Charles George

Grenfell, D. R. (Glamorgan)

Saklatvala, Shapurji

Baker, J. (Wolverhampton, Bilston)

Groves, T.

Salter, Dr. Alfred

Baker, Walter

Hall, G. H. (Merthyr Tydvll)

Shiels, Dr. Drummond

Barr, J.

Hardie, George D.

Shinwell, E.

Batey, Joseph

Harris, Percy A.

Sitch, Charles H.

Brown, Ernest (Leith)

Hore-Belisha, Leslie

Smith, Rennie (Penlstone)

Buchanan, G.

Hutchison, Sir Robert (Montrose)

Stephen, Campbell

Cluse, W. S.

Johnston, Thomas (Dundee)

Strauss, E. A.

Clynes, Rt. Hon. John R.

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

Sutton, J. E.

Connolly, M.

Jones, Morgan (Caerphilly)

Thorne, W. (West Ham, Plaistow)

Cowan, D. M. (Scottish Universities)

Jones, T. I. Mardy (Pontypridd)

Thurtle, Ernest

Crawfurd, H. E.

Kennedy, T.

Tinker, John Joseph

Day, Harry

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

Viant, S. P.

Dennison, R.

Lawson, John James

Wellock, Wilfred

Dunnico, H.

Lowth, T.

Whiteley, W.

Evans, Capt. Ernest (Welsh Univer.)

March, S.

Wilkinson, Ellen C.

Fenby, T. D.

Montague, Frederick

Wilson, C. H. (Sheffield, Attercllfie)

Gardner, J. P.

Owen, Major G.

Wright, W.

Gillett, George M.

Parkinson, John Allen (Wigan)

Gosling, Harry

Ponsonby, Arthur

TELLERS FOR THE NOES.—

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

Purcell, A. A.

Mr. Hayes and Mr. B. Smith.

Standing Orders

Ordered, That the Standing Orders, as amended, be printed.

Message from the Lords

That they have agreed to,—

Bridlington Harbour Provisional Order Bill,

Lincolnshire Rivers Fisheries Provisional Order Bill, without Amendment.

Companies Bill, with Amendments.

Amendments to—

Ministry of Health Provisional Orders Confirmation (No. 9) Bill [ Lords ], without Amendment.

Orders of the Day

Wireless and Cable Services

Motion made, and Question proposed,

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

I am sorry that it should be necessary for me to ask for the patience of the House on two occasions during the same Session, but I hope that after I have inflicted my present remarks upon the House I shall not speak at excessive length on any subsequent occasion for a very long period. In the first place, I want to say that I have given formal notice to the Assistant Postmaster-General, the hon. and gallant Member for Dover (Major Astor), the hon. Member for the Isle of Thanet (Mr. Harmsworth), and the hon. and gallant Member for Norwich (Captain Fairfax). I am very much obliged to the Assistant Postmaster-General for his kindness in being present, and I am interested to notice that the other hon. Members have not found it possible to be here. The Opposition have asked me to say that, glad as they are to have this second brief opportunity of discussing what they regard as one of the most important subjects of modern times, not because it happens to be a telegraph matter, but because of its financial and general political implications, they are extremely dissatisfied that for the second time the discussion has to take place with no opportunity of testing the sense of the House. With what I am going to say to-day I do not hope, indeed I should be foolish to hope, to convert anyone who is nominally my opponent in this House, but I make bold to say that after this discussion, even though we may not be able to test the sense of the House, there will be hundreds of thousands of men in this country, who have hitherto supported the Conservative party in the belief that they themselves were Tories and had interests alike with the Government, who will begin to wonder whether a Government of this character, dominated as it is by the interests to which I shall refer in a moment, is likely to look after the interests of the small man, whether he be a commercial user of cables or not.

I fear that it is more than probable that most of my hearers to-day did not do me the honour to read what I said on 21st May; therefore, I want to run over the points which I ventured to submit to the House on that occasion. I stated that the merger between the cable companies and the Marconi Company was a calculated attempt to force the hands of the Government, and that it was accompanied by a treacherous threat to let the cables go derelict. That statement has been fully justified, except that the treacherous threat was not only to let the cables go derelict, but to sell them to the United States. I referred to the cable companies' fear of competition, competition which they and their newspapers affected to applaud, and to the enormous cash reserves which the cable companies have built up, totalling more than £11,000,000, which were only made possible because of the enormous subsidies which Governments have paid to them in order to make their business possible.

4.0 p.m.

I ventured to assert that the cable companies had got together with the Marconi Company in the hope that they would be able to continue to exploit the commercial user and the general public, and I ventured to claim—and I repeat that claim to-day—that the best possible service at the lowest possible price could be secured only by retaining the means of Empire communication in the hands of this Government and of the Governments of the Dominions. I submitted very detailed figures to prove that immense sums had been made on the Stock Exchange in speculation as a result of announcements which were persistently made in the "Daily Mail" and the "Evening News" forecasting the decision of the Imperial Conference. This scandal of premature publication occurs and recurs without the slightest protest from the Government. I am told that they dare not stop it. I venture to submit that men and women, good citizens in this country are getting tired of the scandal, and are beginning to demand that the Government shall stop this sort of thing going on. In addition, I quoted very high financial authority as to the history of the Marconi Company, and, as far as I know, no one has made the slightest attempt to contradict any of those statements. The Government, as far as one can tell from its Report, has attached no value whatever to the point of view of the opposition which I was asked to express on the last occasion. Finally, I reminded the House on 21st May, of the statement of the Prime Minister in 1923 when, speaking on behalf of the Cabinet, he said:

Whatever may be the facts with regard to that, we do know that the shares of the Spanish and General Corporation have jumped from a few coppers to a figure which is approximately 38s. 6d. at the moment. I notice that the quotation is 38s. 6d.—39s. 6d. In June, 1926, this Spanish and General Corporation had a share capital of £347,742, and it had a debit balance on profit and loss account of £343,795. These are not fancy figures, but are taken from the Stock Exchange Year Book, and they have been tested and checked to the utmost of our ability. I assert that the company has no assets of any value whatever, and this enormous rise which has taken place from what I believe to be a figure of 1½d. to 38s. 6d., is pure manipulation, in which the directors of whom I am complaining have participated. I do not know how far the House is fully informed about the Spanish and General Corporation, but it may be interested to know that the Spanish Trust, which was registered in 1912, was reconstructed in April, 1920, the shareholders being given one share in the Spanish and General Corporation for each share held in the Trust. My information is from the most reliable source. I think it was in the last two years that the liquidator acting for the Marconi Company sold 1,200 shares, which no one had thought it worth while to claim, at a figure of l½d. each.

I understand, further, that in February of this year the Marconi Company disposed of nearly 200,000 shares in the same Spanish and General Corporation to a broker. I am very anxious to be accurate, and I do not say "outside broker" because I am not quite sure of the "outside," but I think it was pretty evident that it was. They disposed of 200,000 Spanish and General Corporation shares to a broker for a consideration which was less than £5,000—at least so the transfer states—and we get this interesting situation, that either those shares which are so valuable to-day were sold for less than 6d. a share, or else the Inland Revenue was not being treated quite fairly. I submit that the Government might very well look into that matter merely from a revenue point of view. I am informed that the Marconi Company undertook, in selling those shares for a consideration less than £5,000, to permit their address to be continued to be used, and to keep its directors on the Board. Further—and this is one of the very few points I have not been able to check—I understand that the "Evening News" persistently and consistently quoted these shares as Spanish Marconi, although they never in this world had anything at all to do with wireless.

I claim that this matter—and this is only the beginning of it—is of sufficient Imperial importance to justify the most careful and thorough searching investigation by the Government, and if the Government do not undertake the inquiry it will not be unnatural if the man-in-the-street begins to wonder what is the reason. On Thursday of last week I learnt, to my amazement, that I was getting rather closer than I cared about to Members of this House. I was in-formed that two of the new directors of the Spanish and General Corporation were a Colonel Gurney, who had been a partner in a firm of solicitors known as Worthington-Evans, Dauney and Company, and the junior Member for Norwich. I had no interest and had no wish in any way to say anything about the junior Member for Norwich which would be detrimental to him, and I regarded it as being my immediate duty to get in touch with him. I approached him, and I explained to him that I felt bound in the public interest to refer to his company in this Debate to-day, and I asked him whether it was not possible for him to be present. He said that he was going on holidays. I said, "In those circumstances, do you not think you had better agree with me as to a statement I can read to the House?" The junior Member for Norwich agreed very readily, and this is the statement, which I drew up very hurriedly. It is not in very perfect form, but perhaps that will be forgiven: plained as to the way in which these shares have jumped from 1½d to 38s. 6d.

Since I spoke in this House last with regard to the Marconi Company, some additional information has come to my hand with regard to the way in which the capital of that company was reduced. It will be remembered that there was considerable opposition to the reduction of the company's capital—I am going to use round figures—from £3,200,000 to £1,600,000. The "Times," in its City Notes on 9th March, 1927, published an advance copy of a powerful circular issued over the signatures of Sir William Plender, Sir Robert Kindersley, the Hon. Charles White and Dr. E. Ofenheim and the Earl of Leicester. Those gentlemen appealed to the shareholders to agree to the reduction in capital, and the weight of their names was such that the reduction was agreed to. Although the matter is not strictly in chronological order, I want at this point to refer to the questions in court when formal consent was given to the reduction of capital. The Right Hon. F. G. Kellaway went into the witness box in court, and was asked by a shareholder: in the previous January with a copy of the investigating accountant's report, and through the Cushion Trust, a subsidiary of Lazard Brothers, a Trust which had at one time a capital of £100, he was acquiring thousands of shares at a low price during March and April, 1927.

I said to a right hon. Gentleman in this House last night, thinking to make his blood run cold, that I was amazed that Sir Robert Kindersley should have issued a circular to Marconi shareholders advising them to agree to the reduction of the capital value of the shares whilst he at the same time had confidential information on which he was buying the very shares the price of which he was endeavouring to reduce in the market. And that right hon. Gentleman said to me, "There is nothing surprising about that. It is going on all the time, and you cannot stop it." Is it too much to hope that the Government will realise, whatever may be the normal practice in the City of London, that when people begin to tackle the property of the nation we ought to have a little better standard than that.

I cannot understand on what ground one can defend the action of a man who is definitely taking public action to advise persons to agree to a reduction in the value of their shares, whilst he at the same moment is buying them up by thousands. On the 25th October, 1927, those shares were quoted at 38s., and on the 14th March, 1928, they reached 67s. 6d. On the 31st December, 1925, the Marconi Company held 1,238,658 shares in the Canadian Marconi Company. The Marconi directors wrote down the value of those shares to 2s. ld. a share, and then sold the shares to Sir Robert Kindersley, that is, to the Cushion Trust, at 4s. 2d. a share. Those shares which Sir Robert Kindersley, that is, the Cushion Trust, secured for 4s. 2d. are being quoted to-day at or about 30s. The Cushion Trust, the nominee company of Lazard Brothers, who held 5,485 shares in the Marconi Company at the end of November, 1927, had increased their holding by the beginning of 1928 to 51,800 shares.

It is as the result of operations like these that the nation is faced at the moment with the very pretty prospect of losing one of its great potential assets. If those allegations are correct, even if they are approximately correct—and I speak in this House as a person with no special sources of information—I respectfully submit that no one of the gentlemen concerned is a proper person to have anything to do with Empire communications.

I am very sorry that this afternoon we have not the pleasure of the company of the hon. and gallant Member for Ripon (Major Hills), because on the last occasion he said that it was important that the Government should not continue to control beam wireless, as there was a danger of losing the taxpayers' money. I quite understand that hon. Gentlemen are very keen about the taxpayers' money, but when I listen to the hon. and gallant Member for Ripon I am rather apt to be deceived. I look at him and I regard him as being a nice old dear, a typical old-fashioned Tory who has just come up from the country; and one is inclined to accept his statements at their apparent face value: but when one finds that the hon. and gallant Member for Ripon, despite his niceness, is a director of the group which controls the most important financial papers in this City of London, and when we find that he has other interests beside those newspapers, are we not almost bound to think that the simplicity is in the mind of the hearer rather than in the mind of the speaker?

The hon. and gallant Member takes the position that there is a danger of losing the taxpayers' money if the State continues to handle beam wireless, but I want to submit a point which I consider to be of first-class importance. In connection with Imperial communications, or with any other service which is essential to the community, whose money should be risked if not the taxpayers'? It is very unselfish and very generous of the Gentlemen on the other side of the House to be continually anxious to risk their money for our benefit, but we do not wish to continue to take advantage of their generosity and it is our determination at the earliest possible date to take the risks for ourselves, and, what will be more disturbing to them, to take the profits also. A good deal of discussion has taken place as to the potential profits of the beam service. I see that the "Times" of to-day does me the honour to refer to the figure which I thought might be the profits for the current year. I had no special source of information, and it turns out that what I thought would be the profit was actually the revenue. But a mistake of that character on the part of a private individual does not destroy this case. The potential profits of the beam service are simply enormous. If you want to ascertain what the profits of a comparable service are, have a look at the figures for the Radio Corporation of America, who made a profit last year of £2,360,000 and expect to make £3,000,000 this year.

Pounds. And suppose that anything goes wrong in the future. It will always be the State which will have to come forward to rescue the service, as it has had to rescue the cable companies in this particular case. The point I want to submit to the House is that there was a definite campaign of newspaper, insurance, financial and banking interests, most cleverly conducted in order to force the Government into the position in which they find themselves in this matter.

That brings me to the hon. Member for Aldershot (Viscount Wolmer), who has been good enough to be present. I want to say in the first place that I hardly know the hon. Member more than one gets to know a man by seeing him on the other side of the House; I have no personal feeling with regard to him at all, and I hope he will believe that. The hon. Member is in the unhappy position of being an individualist in charge of a State enterprise, and it is extraordinarily difficult to combine that attitude of mind with that particular function. On 12th January this year the hon. Member, after three years as Assistant Postmaster-General, made an attack, I regret to say not the first attack, on the Post Office as a State enterprise. He said he was perfectly certain that under private enterprise our postal service would be a more economical and efficient system than it was at present; and he added that there was the great difficulty in a State-run Department of finding the right man to control a great business organisation. Perhaps we can agree; but I would respectfully submit that the right man is not the man who believes that the or- ganisation can never be made efficient. The right man is not he who believes that private enterprise and not public enterprise should be the system, and, if the Post Office has suffered from anything, it has been its peculiar misfortune, over a long series of years, to be so frequently controlled by men whose interests were not quite the same as those of the public service.

The point of interest to me about the Noble Lord's speech is that it happened to coincide with this campaign. It happened to fall almost on the same day as the Hardman Lever Report, a report which went beyond the terms of reference of the Committee, which made sweeping attacks on the staff, sweeping attacks on the Civil Service conditions, and on the State management of the telegraph services. I submit that the report went beyond its terms of reference, and made attacks on the State management and conduct of the telegraph services, not with an eye on the inland telegraph service, but in order to create a weapon which the Press could use in connection with this particular wireless merger. When we remember the extraordinary thing that the Chairman of this Committee is a director of the "Daily Mail" Trust and that, as the hon. Member for the Abbey Division of Westminster (Mr. Otho Nicholson) told us on the 21st May, the "Daily Mail" has certain great ambitions, that it hopes to be the greatest, the most important, newspaper in the world, and it has certain visions of being able to do it by wireless, is it at all surprising that Sir Hardman Lever, playing the game of his great trust and of private enterprise, should have prepared a report which was not in accordance with his terms of reference, but which was extraordinarily useful in preparing the ground for a larger merger? I venture to submit that the Hardman Lever Report, the speech of the hon. Member for Aldershot and the scare statements of the right hon. F. G. Kellaway, who alleged that American interests were prepared to take over the whole of the internal telegraph and telephone services of this country, all played a part in the campaign which has brought us to this particular point.

I referred a moment ago to the hon. Member for Aldershot and his difficulty in controlling the Post Office. The pre- sence of the Noble Lord at the Post Office is similar to that which would result if the senior Member for Dundee (Mr. Scrymgeour) was made the managing director of Messrs. Bass, Ratcliffe and Gretton in the hope of increasing the sale of beer; but really the important point about the hon. Member for Aldershot is not so much his personal expression of opinion as the interests of his father, which are of rather a striking character. Lord Selborne is chairman of the Telegraph Construction and Maintenance Company, more than one-third of the shares in which are owned by the Eastern and South African Telegraph Company and the Globe Telegraph and Trust Company, both members of the merger. Lord Selborne is a director of Lloyds Bank, which shares a director with the Marconi Wireless Telegraph Company; and he is also a director of the Peninsular and Oriental Banking Corporation, another director of which sits on the board of the African Direct Telegraph Company and the Eastern Telegraph Company. It is rather difficult to tell without having had any experience whether the linking of directorships is a thing which will impress hon. Members opposite. It may not impress them but it impresses my friends who feel that linked directorships and linked investment and all sorts of ring arrangements are just the weapons by which the interests of the State have been defeated. This linking is carried on to such an extent that no one with a surface knowledge knows how bad things are in consequence.

I will now come to some of the big people engaged in this business. The biggest and most important of these people is the firm of Lazard Brothers, a world-famed firm of financiers, who I believe have an excellent reputation. I have already referred to the fact that Lazard Brothers, whose managing director is Sir Robert Kindersley, purchased the shares of the Canadian Marconi Company. They appointed two of its three trustees who are through the Cushion Trust Limited substantially interested in the Marconi Wireless Company. I do not think there is the slightest doubt that the mind of Lazard Brothers was the mind which conceived the merger. Details about Messrs. Lazard Brothers appear in the Jewish Encyclopædia on page 510. Sir Robert Kindersley after all is a most interesting figure to us. He is the chairman and managing director of this company. He is one of the directors of the Bank of England, to whom so many bouquets were thrown during the discussion on the Currency Bill in this House; he was formerly a director of the Eastern Telegraph Company. Lazard Brothers issued most of the guaranteed mortgage stocks for the Canadian Northern Railway Company, and they are represented on the board of the Newcastle-on-Tyne Electric Supply Company for whom they recently made a big mortgage debenture issue. This is interesting to me because I feel that we are faced at the moment with the full force of the electric world in its alliance with finance. Lazard Brothers and Messrs. S. Pearson and Sons, Limited, are associated with the Whitehall Securities Corporation Limited which holds half the share capital of Messrs. Pearson and Dorman and Long, Limited, whose electric power interests in the Kent coalfield interlock with the County of London Electric Supply Company which charges me such charming rates for my electric supply at home. Then there is the Whitehall Electric Investment Limited which is completely controlled by the members of S. Pearson and Sons, Limited, along with the Power and Traction Finance Company, Limited, and the Hungarian Trans-Danubian Electrical Company, Limited. Messrs. S. Pearson and Sons are associated with the Metropolitan Vickers Electrical Company, the G.E.U. of Berlin and Callender's Cable and Construction Company. Anyone who heard the discussion on the Wessex and Weald Electricity Bills will know the hold it has got on electricity. Lazard Brothers are possibly the centre of electrical finance. If my information is correct electrical finance is not a thing which is criticised in this country at the moment.

I was always very much mystified with the attitude of the "Times" on this question. One is tempted to regard the "Times" as a national newspaper, although it is perfectly obvious that on frequent occasions it is nothing but a Tory hack. Nevertheless one feels that it is a national newspaper, and that its stuff is reliable. Yesterday I came across a very interesting piece of information. I found that the Hon. R. H. Brand, one of the directors of the "Times" is also a director of Messrs. Lazard Brothers. Another director is Sir Campbell Stuart who is a member of the Imperial Wireless Conference which is settling the whole thing. I think that is a curious combination because it includes a member of Lazard Brothers, a member of a great organ of public opinion, and a member of the communicating body. Nevertheless I go on hoping that from the "Times" I shall get the truth.

I will take a recent illustration of their methods. The Estimates Committee of this House only a few days ago published its report and it criticised the cable ring in this country and ventured to attack the very heart of this great concern. Upon what ground? Simply on the ground that the cable ring charged us more for its goods than it charged our foreign competitors. The "Manchester Guardian" and papers of that repute regarded this pronouncement as being of the utmost importance. The "Times" published a summary of the Report giving more than a column of its space to this subject, but it never once suggested that such a thing had been said. That is the way the conspiracy goes on. I do not know what motives actuated the Directors of the "Times" but those three facts put together constitute a case that impresses a simple person like myself.

Another concern which is likely to be very influential in this respect is Hambro's Bank. Through its director on the Eastern Telegraph Company and its association with Lord Inverforth and Sir C. C. Barrie it is likely to exercise great influence on the policy of the cable and wireless merger—hon. Members will see how these things are associated. Hambro's Bank is associated closely with the Hungarian General Credit Bank in Budapest and a big bank in Vienna, the name of which I cannot pronounce. There is also the Anglo-French Banking Corporation and many others. I understand that Hambro's Bank represents the interests of the Great Northern Company in this country which owns 25,528 shares in the Eastern Telegraph Company. Hambro's Bank is fortunate in having amongst its shareholders the Royal Families of Denmark, Greece and Sweden and it acts as financial adviser for Greece and Italy. Hambro's Bank has world-wide interests but there is no reason to suppose that they coincide with ours.

The person of most interest to me in all this business is Mr. Szarvasy, who first came under our notice in 1926 when he appeared in Court in connection with a reduction of the Marconi Wireless Company's capital. From 1910 he was no more than a shareholder in this country so far as is known, but from 1912 he became a substitute director for Baron Springer, of Vienna, and he was a member of the board of the British, Foreign and Colonial Corporation of which he is to-day the Managing Director and Chairman. When Lord Rothermere formed his "Daiy Mail" Trust the British, Foreign and Colonial Corporation through Mr. Szarvasy issued a mortgage debenture for £9,000,000 when Mr. Szarvasy joined the Board of the "Daily Mail" Trust, thus making one more link in the chain. Mr. Szarvasy is a director of the Dunlop Rubber Company. In April, 1922, he joined the directorate of the Danube Navigation Company, Limited, and he also became a director of the Guardian Assurance Company, Limited, and of Martin's Bank, Limited. He is also one of the three members of the committee of directors of the Hydro-Electric Securities Corporation of Quebec, along with the late Alfred Loewenstein, of Brussels, and Albert Pam, of J. H. Schroeder and Company. The Hydro-Electric Securities Corporation belongs to the group of interests which control the power used by the Canadian Marconi Company, Limited. Baron Springer is still a member of the Anglo-International Bank, Limited, which incorporates the business of the old Anglo-Austrian Bank and the British Trade Corporation. Mr. Szarvasy is the chairman of the Anglo-French Banking Corporation, which was formed a few weeks ago with Lord Derby as its President.

There have been one or two recent appointments to the board of the Marconi Company which are worthy of notice. There is Sir Charles Coupar Barrie, who is associated on the directorate of the Danube Navigation Company, with Mr. Szarvasy. Sir Coupar Barrie is interesting to me as a member of the Post Office Advisory Council. It is an excellent idea to have gentlemen of this type advising the State as to its best interests. The second addition is that of Mr. F. R. S. Balfour who was associated on the Guardian Assurance Company with Mr. Szarvasy. Mr. Balfour appears as a member of the Bank of Montreal and the Bank of Montreal in France. This is interesting because Canadian finance plays an important part in these matters.

The third addition is a name which interests me very much. It is Sir Frederick Sykes, who has been appointed Governor of Bombay. He was a director of the "Daily Mail" Trust and the Marconi Telegraph Company as well as a director of the Underground Railways of London, the London Express Newspaper, Limited, the "Sunday Sketch" and the "Sunday Herald." I asked a question some weeks ago as to the relationship between a Governor and directorships, and from the reply which was given at the time I gathered that Sir Frederick Sykes will no longer hold those positions, but it is interesting to me to know that such an influential force in the political world was the link between the newspaper world, the Marconi Company and certain other people.

From the facts which I have submitted to the House, I think I am entitled to say that, in my view, there is a definite conspiracy to rob the Empire of one of its greatest potential assets. This action is being taken, apparently, on the ground as referred to in the Report, that there was a danger of these means of communication being transferred to foreign hands. When the Report refers to foreign hands, it means American hands, and, seeing that the course to be taken is due to a fear of American control, what I am about to say should be of particular interest. We find evidence that the cable and wireless groups here not only have various associations with other industries and interests in foreign countries, but that they are also associated with American cable and wireless concerns. It is impossible for me to know the full extent of these ramifications, but what I propose to bring to the notice of the House will, perhaps, whet their appetite, and encourage them to make further researches for themselves. The Marconi Company never encourages its shareholders to seek this information, and, when a shareholder dared, in 1922, to press for information, he was informed by the Chairman that:

Some of the actual detailed figures of the financial holdings of the Globe Telegraph and Trust Company may be interesting, although I can find nothing in the Report which would confirm that any such holdings exist. I am assured, on the best authority open to me, that these figures are accurate, that they have been taken from the company's records, and that they cannot be disputed, but, when I read through the Report of the Con- ference, I can find no reference to any such figures. I have the figures both for the nominal and for the actual holdings, and I propose, for convenience, to take the actual holdings, although the figures are in some cases greater and in some cases less than the nominal holdings. The Globe Telegraph and Trust Company, Limited, holds £1,311,691, at 10 per cent. free of Income Tax, in the Eastern Telegraph Company. It holds £1,048,000 in the Eastern Extension Telegraph Company, at 10 per cent. free of Income Tax. It holds £710,000, at 10 per cent. free of Income Tax, in the Western Telegraph Company. It holds £177,499, at 10 per cent. free of Income Tax, in the Telegraph Construction and Maintenance Company. It holds £94,677 in common stocks at 7 per cent. in the MacKay Companies, £40,060 at 8 per cent. in the Western Union Telegraph Company, and £17,045 at 9 per cent. in the American Telegraph and Telephone Company. Despite the fact that these investments are bringing in 10 per cent. free of Income Tax, this Conference is proposing that part of the bargain shall be that these companies shall be allowed to have part of the loan secured on the National Debt Commissioners at 3 per cent., a figure at which they could never borrow in the open market.

One of the important points to get well into our minds is that the cable companies are out to save themselves from beam competition. Owing to their huge reserves, they are going to have, I understand, 12 directors on the board of the merger, as against eight Marconi directors, and it looks as though wireless policy will be subservient to cable interests. There has been a rumour that this arrangement of 12 and eight will be upset, and that an equal division, resulting in 10 on either side, will be secured. Even so, however, that will not be an improvement, because stagnation is the only thing that is likely to result from that arrangement. Prices have been forced down by the Post Office beam competition, and are likely to be stabilised at their present figure. If anyone wants ground for that, they have only to turn to America, where a similar merger has been formed, and where there is great alarm that the user of the telegraph is going to suffer as a consequence. But the best testimony that I have seen was a letter in the "Times" from Mr. J. Gosling, a former Postmaster-General of British Central Africa. In the "Times" of the 2nd July he wrote:

I understand that the hon. and gallant Member for Montrose (Sir R. Hutchison) is going to deal with the question of this wireless merger in relation to national defence. I am quite certain that he will do the job more efficiently and effectively than I should, but I want just to remind the House that it has been previously stated, and it cannot be too often repeated, that the Great War was lengthened, and lengthened altogether unnecessarily, because of the failure of the censorship during the first two years of the War period. The War Office records contain the facts where they can be examined. They contain proof that the censorship was ineffective, and I am here to say to-day that it was necessary at that time to transfer the censorship from the cable companies' offices to the Central Telegraph Office, and that the interests of this nation were not secure under the conditions which operated in the early years of the War. The proposal in this Report is that, in times of national crisis, when everything is in a state of upheaval, the control of these services shall be transferred to the State. I believe that, in the national interest, the control should be there the whole time. If it is not there the whole time, it is quite folly on anyone's part to imagine that a control which is transferred at a moment of crisis will ever be a satisfactory or effective one.

Another interesting thing about this Report is the character of the witnesses. At the end of the Report, we have a list of witnesses who appeared before the Conference, and I fail to find one who is not an interested person. It is really amazing that, in an inquiry of this character, no witness should have been called to represent the view of the home Government; and to print, at the end of a Report of this character, a list of witnesses every one of whom is associated with a company of some sort, is nothing less than impertinence.

5.0 p.m.

The proposal in Recommendation (iii), that the Government staff should be transferred to a private communications company without prior consultation, is absolutely unprecedented, and is bound to be resolutely resisted. The period for which it is proposed that a lease should be granted, namely, 25 years, is much too long, and, in my view, the finance of the scheme is absolute robbery, as anyone who cares to read Paragraph 20 of the Report will very soon find for himself. It is not sufficient that the Government should have the right to agree to two directors to be selected by a communications company. I object to the communications company. If the communications company is to be set up, it must be in circumstances which will give the Government effective control, and that means that the Government must have a sufficient number of directors on the board to control the policy of the company. A traffic arrangement between the interests, with a view to pooling the traffic and the division of the resulting income, would have quite met this case if it had not been for the desire to impress the market. Everyone knows perfectly well that a traffic arrangement would not have put up the price of the shares, but the poor deluded investing public have been led to believe that the merger between a number of interests added greatly to the value of the shares, whereas, as a matter of fact, the value of the shares is no greater to-day than was the total of their individual holdings prior to the merger taking place. We get another explanation of the merger in Paragraph 37. The Conference tell us that the merger would probably not have taken place had there been no possibility that the beam service would be surrendered to their clutches. The report goes on to say:

I should like the Secretary of State for Scotland to tell us a little more with regard to the Pacific cables. The original cost of the Pacific cable in 1902 was £2,000,000. The re-duplication cost £2,720,000, a total of £4,720,000. That property is to be given to the Communications Company for £517,000, plus the remainder of the debt charge, £1,200,000, making a total of £1,717,000. I know we shall be told depreciation is operating. There has not been much time for depreciation to operate in the case of the re-duplication of the cable, which was only completed in 1926, and it seems to me clear that the basis of valuation, so far as the Government cables are concerned, is altogether different from that which has been applied to the cable companies. I believe the assets of the companies are being roughly valued on the basis of their shareholdings, less the cash reserves which are in the hands of the cable companies, and which are not to be handed over to the Communications Company. I should like an explanation why the Communications Company is to get the Government cables at such a low figure, whereas it appears that the cable companies' plant is to go for something like its present value.

The report discusses five possible courses. It deliberately avoids the sixth course, that the Government should control Empire wireless and cable communications. Why does it ignore the sixth course? Because that was not the answer that was called for from its dictators. This report is an insult to the intelligence of our people. If we had an independent Press it would be torn to shreds within a week. The trouble with the Press is that it is venal. It is entirely under the control of the big financial and industrial interests, who make things profitable to the newspaper proprietors by using its columns for advertisements.

I wish the hon. Member would repeat that. In view of his interruption, I will give a quotation from the Lord Chief Justice, who in delivering an address to the American Bar Association on 1st September, 1927, said:

"I should like to refer to a certain change which seems to have taken place in the character and the aims of much of the newspaper Press. 30 years ago and more there were already signs in many newspaper offices of a contest for supremacy between the editorial department on the one side and the business, which is to a great extent the advertising, department on the other. I cannot help thinking the contest seems to have been decided, and in an enormous number of cases decided in favour of the business department. It was undoubtedly an expert in the business department who said not long ago that the real power of the Press is the power of suppression."

I think the illustration I gave from the "Times" is a very excellent illustration of that:

"A multi-millionaire, it would seem, presses a button in his office, or his smoking room, or his bedroom, and straightway the nominal heads of a whole group of newspapers stand at attention, and within a very few hours each one of those newspapers, purporting in every case to represent an authentic and individual opinion, asserts or denies, attacks or defends, displays or suppresses, magnifies or disparages, in accordance with the will or whim of the invisible dictator."

If I may add my own words, there is an invisible dictator behind this Government.

"If newspapers are ordered to be treated as mere articles of trade, if their function is to be simply to increase and inflame the already deplorable power of mere money in public affairs, is there any reason whatsoever why, in any respect whatsoever, the law should exhibit any special tenderness towards them?"

I am more than obliged to the hon. Gentleman for giving me that opportunity.

I repeat the word "rubbish" in connection with the remark the hon. Member made. I consider what he said is an entirely unworthy aspersion on the British Press, which is the finest in the world, though there may be exceptions.

Having a recollection of the Lord Chief Justice when he was a shining, not to say a brilliant member of the Conservative party—[HON. MEMBERS: "He never was!"]—one of the best of the Coalition people. I am prepared to accept his view. My concluding words to the House are that this report is a fitting conclusion to a disgraceful campaign of treachery and knavery.

I have listened, as I am sure the House has listened, to a speech of considerable length which one would not have complained of had it for the major part been appropriate in any sense to the subject we are presumed to be discussing. The hon. Member has seen fit to take advantage of his position as a Member of Parliament to make certain remarks about private individuals who are not in a position to reply to allegations of this kind. As an old House of Commons man, I have always been brought up to think that, if there are any allegations that should be made against individuals which are worth the attention of the general public, they ought to be made in a place and at a time when they can be replied to. The hon. Member has thought fit to make a particular reference to one of the Members of the Conference. I would only say that he sat on that Commission as the representative of one of our Dominions and it is for that Dominion to say whom they shall have to represent them. The hon. Member has spoken of dictators behind the Government. I should indeed be interested to know to what dictator he refers. I found myself in the position of Chairman of that Conference, and I presided over a Conference representative not only of His Majsty's Government here but of all the Dominions overseas, and there has not been any measure of compulsion or dictatorship exercised upon that body. I hope and trust the British people will take my word for that.

The hon. Member in his opening words said this problem was the most important of modern times. He proceeded to speak of matters which had little or nothing to do with the importance of that problem. What is the problem? The reference to the Committee was in the plainest terms, and it arose not only from the fact that His Majesty's Government were conscious that there was a problem, but that the Governments overseas had made representations to that effect, and we were asked to examine the situation which had arisen as the result of the competition of the wireless and cable services, to report thereon and to make recommendations with a view to a common policy being adopted by the various Governments concerned.

A good deal has been said to-day about the relative advantages of State control and private enterprise, and the hon. Member would appear to believe this is a problem with which only the one or the other is concerned. Here at home, of course, we have some of these things under State management, like the beam and certain cables. Here at home, too, there are other cables which are under private enterprise. At the other end of the line, in Australia, you have one system and in Canada another. It was the necessity for the co-ordination and the binding together of all these circuits in a common interest which called for the consideration of this problem. The success of the beam as a new invention, as a competitor with the old cable system in the service of the world, or in the service of the Empire, is not due either to the fact that it is privately owned or owned by the State. In the one case the beam was in the hands of the State, and its operation was in the hands of the State. Certain parts of the Overseas communications in the Marconi Company were in the hands of a private company. It is, therefore, pure rubbish, and it is beside the point, to talk about the relative values of State and private enterprise. The fact remains that, whether it is in the hands of the State or of private enterprise, competition has arisen, a new invention has taken the place of an old, and certain stations under the beam system can be erected at infinitely less cost than the actual maintenance of some of the cable systems, and yet, on the other hand, there is this fundamental fact, which cannot be forgotten, that whatever the success of the beam and of the wireless may be, it has not attained either that measure of continuity of service or secrecy which is essential to the Empire as a whole.

This problem is not one of great simplicity. It has baffled the ingenuity of many people. But at least we come before this House after very long consideration of this problem by a body which consists not of those belonging solely to His Majesty's Government in this country or imbued by any kind of dictatorship or by a desire to overthrow the fond fallacy of the party opposite, but by a body composed of men who represent a great variety of views and, as far as the Dominions are concerned, a good many different interests, some of them having to make a measure of sacrifice to attain a common purpose, and His Majesty's Government having to make, perhaps, the major sacrifice in order to attain unity of purpose. I make that point to show that it is an Empire bargain in which we bear and take our common share and our common responsibility. And in so far as any sacrifice is made, it is not a sacrifice without ultimate repayment, for we shall attain, I believe, under this scheme, a measure of security, of secrecy and of improvement in the commercial intercourse between the various parts of our Empire. I venture to say that those who read the report carefully and who study this matter, will find that the bargain which has been driven is a good bargain as far as the State is concerned.

We, of course, find ourselves in the position of trustees responsible to the public for the conduct of a great utility service, and it is from that standpoint that I want this House to examine the report. The recommendation (iii) of the Conference contains proposals in regard to the transfer of the Government's assets. It is, therefore, the one which affects the Government from the standpoint to which I first referred, namely, that of proprietor. The House will observe that the proposals contained in this recommendation reflect the character of the assets to which I have referred. Thus you will find that the cables which have reached or surpassed their zenith are recommended to be sold, while the beam services which hold out promise of future development are to be leased. Further you will notice that in the terms of the lease of the beam an element is introduced which gives the Government an interest—equivalent to 12 per cent. on any increase in the company's profits above the standard revenue—in the future earnings of these services. You will observe, also, that there is to be a further payment of £60,000. This sum is intended to compensate the General Post Office for those individuals, such as accountants, part of whose work is at present concerned with the undertakings which are recommended for transfer and who, if the transfer takes place, cannot be fully absorbed for some years into the general organisation of the General Post Office. I submit, therefore, that from the point of view of a proprietor of public assets, the responsibilities of the Government are fully discharged. With regard to personnel, the proposed terms of transfer to the company are subject to provision being made for the transfer of existing staffs to the company. The detailed arrangements under this head would certainly require and receive full and sympathetic consideration, but it will be appreciated that negotiations with the company in this matter must await a final decision on the report of the Conference.

As regards the second standpoint, namely, that of trustees for the conduct of a great public utility service, I take it that this responsibility involves the adoption of measures which will secure to the public an efficient service at the cheapest possible rates. Before passing to an examination of the recommendations of the Conference in this con- nection, I must draw attention to one point. What is required in the interests of the public is not only cheapness, but also efficiency. What the future may bring forth I do not know, but it is an established fact at the present time that wireless cannot wholly supersede cables for all classes of traffic. For some years to come cables will still be necessary for strategical purposes and also for commercial purposes. The greatest use and the greatest benefit can be derived, in the opinion of the Conference, and in my judgment, from a combination of these two services—the wireless and the cables acting as a complement one to the other. Further, by a combination of the two, there is no doubt that considerable savings can be effected by the elimination of overhead charges and duplication of effort. Having regard to these considerations, the Conference recommends a fusion between the cables and wireless, and points out that the merger, which has already been provisionally arranged between the Eastern Telegraph and the Marconi Companies forms the basis for such fusion. But the merger between these two companies involves undertakings other than purely communication services. In order to secure an adequate measure of control, it is obviously desirable that the purely communications aspect of the merger should be segregated, and should rot be confused with non-traffic and other activities. For this reason a separate Communications Company is recommended.

I come to the control of rates. Segregation in this manner enables a figure to be formulated, which shall represent the "standard net revenue" on communications. The Conference recommends that this figure should be £1,865,000—which represents approximately 6 per cent. on the capital of the Communications Company. This figure having been fixed, it is possible to devise a purely mechanical method which shall be applied to the reduction of rates, namely, all prior charges having been met the allocation of 50 per cent. of all the profits above this standard net revenue is automatically attributed to rate reductions or improvement of services.

In order to supervise the allocation of these surplus sums, it is suggested that there should be an Imperial Advisory Committee composed of representatives of all the Governments concerned. This Advisory Committee is given absolute discretion in regard to the fixing of rates within the ambit of the proposals already referred to and powers of veto over any increase of existing rates. The Communications Company also undertakes to consult this Advisory Committee in regard to matters of policy, such as the institution of new services, the discontinuance of any services which may become commercially unprofitable and the general distribution of traffic between alternative routes. I now turn to the Government representation on the Board. As an additional measure of control over the Communications Company, two directors of this company, one of whom shall be the chairman, are to be persons approved by His Majesty's Government. In order to ensure that the policies of each of the entities composing the merger shall not be at variance, it is also suggested that the Boards of these companies shall be identical.

There are additional safeguards. As a still further measure of control, it is provided that British control of all the companies shall be guaranteed, and that the Governments may assume control of the systems in times of war or of national emergency. The cumulative effect of all these measures is, I think, obvious and considerable. They embrace almost every form of control which can be devised. Thus the operation of the standard net revenue is automatic; the authority of the two directors approved by the Government is personal; while the influence of the Imperial Advisory Committee, on which all the parts of the Empire concerned are represented, is corporate and must carry considerable weight. In view of all these safeguards, there can be no fear that the public, and particularly the users of the service, will be exploited for the benefit of the shareholders of the merger company. It seems clear, therefore, that the responsibilities of the Government from the standpoint of trustees for the public are fully discharged.

There remains one other point which, perhaps, I ought to mention—that of wireless telephony. It will be observed that the conduct of telephonic services is reserved to the Government. The future of telephony over long distances such as separate the various parts of the Empire will probably be by means of wireless. But the development of this service has not reached that stage in which any definite opinion can be expressed upon the subject. For this reason, it is suggested that the conduct of such services should remain in Governmental hands, and that the companies should grant facilities on terms to be agreed for the use of their wireless stations or portions thereof for telephonic purposes. I next turn to the question of the attitude of His Majesty's Government upon these proposals. Having fully considered the Report of the Conference and all its implications, the Government have decided that they will accept the Report and put its recommendations into effect. In doing so, they feel convinced that they are acting in the best interests of the public generally, and of the users of the service in particular, for it is in their view only in this way that all the necessary communications between the various parts of the Empire can be maintained and developed without undue cost to the public. They propose, therefore, to enter forthwith into negotiations with the companies concerned with a view to the drawing up of formal agreements on the lines recommended by the Conference.

In announcing this decision, the Government are fortified by the knowledge that the attitude of the other Governments concerned is generally favourable to the recommendations of the Conference, though there are necessarily certain aspects of the recommndations to which they wish to give further consideration or in regard to which fuller information is required.

I will come to that. In response to telegraphic inquiries, the following replies have been received: country possesses. Anyone who has had the opportunity that I have had of presiding over the Conference, could not but express gratitude to his colleagues who have sat with him, representatives of the Home Government and of the Dominions, for the forbearance and generosity with which they have dealt with all these problems. I regret very much, more than I can say, that there should to-day have been any hint or any suggestion of any kind or any criticism of an unfair or unreasonable character reflecting upon any one member of the Board.

None of us can foretell the developments which may take place in these great services, but of this I am convinced, that there is still a life of great utility before the cable services of the Empire and that there is great possibility of expansion and enormous responsibility before the wireless services. I am not an expert in wireless matters but, having listened to many experts, I am convinced that there is a great possibility of development not only for the ordinary messages but for the transmission in facsimile and the interchange with great rapidity to the most distant parts of the Empire of the news which is of importance to all the citizens of the Empire. As the Conference is unanimous in making this recommendation, which has been accepted by His Majesty's Government, I trust that it will be accepted by all the Governments in the various parts of the Empire, and that there will be a unanimity of purpose in the working of it, for the commonweal and for the development of a great institution.

I should like to congratulate the right hon. Gentleman on the conclusion of his very difficult task in presiding over this Conference charged with the duty of elucidating a very difficult problem. The Report is good, and I think the decision arrived at is a sound and wise one. The problems which were placed before the Conference, and the alternatives, are very clearly laid out in page 10 of the Report. After due consideration of the requirements of the Empire, I think that, on the whole, the fusion into one operating company is the best solution that could have been made, providing always that the Government have that control which they will have in the Imperial Board. For years before the War I was interested professionally in communication within the Services, and for a long time since the War, with our experiences in the handling of worldwide cables and wireless messages and the difficulty we had in preventing the leakage of information to the enemy, I was always convinced that some move in the direction of unification of Empire communications was absolutely necessary.

In the first two years of the War, before the censorship was properly developed, undoubtedly leakage did occur. As I conceive it, if we have a unification of all forms of communication overseas under one company, provision can be made beforehand whereby the Government can immediately assert their control. I am satisfied that this unification is a great step forward towards the defence of the Empire. I hope and trust that we shall not need to use communications for defence, but if and when that did come along, this scheme, undoubtedly, would give a control which we have not previously had. The whole reason for the Conference and for the arrangements that have now been proposed have come along as the result of the development of wireless. Immediately after the War we had the wonderful invention of the beam wireless operating in certain areas, and those who had professional knowledge predicted that the cable would ultimately be up against a very serious competitor. There was no part of the Empire more foreseeing in this direction than Canada. In 1923, the Pacific Cable Board wanted to duplicate their cables, at a cost of about £3,000,000; but the Canadian Postmaster-General repeatedly put forward objections to this procedure. He pointed out that it was throwing away money, and he also pointed out the great possibilities of the development of beam wireless. The Canadian Government showed extraordinary foresight in regard to this matter. Notwithstanding the protests by Canadian representatives on the Pacific Cable Board, the Pacific Cable Board thought fit in 1925 to lay their cable, at a cost of about £3,000,000. The result has been that a great deal of money has been sunk in this cable which is not remunerative, owing to the development of the beam wireless.

From the point of view of national and Empire safety it is absolutely essential that we should preserve our cable communications as well as wireless, because it is obvious to anyone that no matter how efficient and how varied our wireless codes may be, they can be picked up and ultimately solved. The human ingenuity that produces a code can solve a code. Therefore, it is of the greatest importance that the cables should be preserved. Had the fight gone on between the beam wireless and the cable, undoubtedly the cable in time, having used up its resources would have gone under and we should have been left with the broken instrument of the cable as opposed to the increasing efficiency of the beam wireless. I think the Government are very wise to approach this subject at once before violent battles have been fought between the two systems, in order to preserve the cable which is absolutely necessary from the point of view of secrecy for commercial purposes and also for the purposes of defence. That, undoubtedly, was the origin of the Conference. The various Dominions have concurred in the recommendations of the Conference and they have agreed with His Majesty's Government that the proposal propounded in the right hon. Gentleman's report should be carried out, and it would be a very dangerous thing for this House to go against the considered opinion of the Canadian Government, the Australian Government, the New Zealand Government, the South African Government and the other Governments concerned, when they find that the proposal in the Report is one that would give them what they require.

Furthermore, the company which is to operate these services is purely an operating company and has nothing to do with constructional work. In other words, it is a separate company controlling purely the operating side of the cables. I regret that the Government have not thought fit to put the overseas wireless telephonic services into the one operating company. We have the land telegraphs owned by the Government, handing over to the cable companies messages for transmission overseas, and in the same way we have our telephones going over land to our wireless stations for transmission overseas, and I see no reason why the one operating company should not control the lot. There may possibly be reasons which have induced the Conference so to decide, but it is a point which should be considered before a final agreement is fixed. Hon. Members ought to read carefully the recent report issued by the International Telephone and Telegraphic Corporation of America. Next Session we shall have to legislate in order to carry out parts of this proposal and it is desirable that the activities of the International Telephone and Telegraph Corporation should be carefully examined. The Chairman's remarks show the extraordinary activity of this great commercial enterprise in penetrating into other parts of the world and especially in trying to penetrate into the British Empire.

That company formerly had a capital of 100,000,000 dollars, which it has expanded to 250,000,000 dollars. It has a controlling interest in the Houston-Thomson Company in this country, and also a controlling interest in a company which permeates the overseas parts of the Empire. It is obvious to those who have considered the progress of this Corporation in regard to wireless development that unless some competing body is created in this country we should very shortly be under the heel of this powerful corporation. I for one am very glad that we are going to have in the British Empire a body sufficiently powerful to compete with this corporation, able to develop and improve our various means of communication, and in a position to finance further developments inside the Empire. It is only by the efforts of a corporation such as this that you will get really quick development. If we had delayed much longer our efforts to get unity between wireless and cable then, during the time of the battle between the beam wireless and the cable, we should have found that the control of our existing services was passing into other hands, and from an Empire point of view that is the last thing we want. At the present moment this international body in America has services running between Spain and this country and is developing further stations between Spain and America. You have there a foreign operated service coming in and being a danger to us in times of adversity.

I hope something may be done towards the development of a cheaper form of wireless telephony throughout the world. At the present moment the cost is ridiculously high, and that is one reason why I hope that this controlling group will absorb the wireless telephone at the same time as they take over the beam wireless and cut the service down to £1 a minute whereby commercial users would be induced to use the telephone. At the present moment the cost is prohibitive, and it is only by encouraging people to use this telephone that you are going to get a sufficient amount of income in order to develop that service. We should consider the advantages, which will be secured to the public as a whole if telephony is included in that group. I do not know whether the Postmaster-General is of the same opinion. Then there is the question of the personnel. I understand that the right hon. Gentleman is to consider specially the various interests of the personnel to be transferred to the new corporation. If this personnel which is now working in the Post Office service is well treated, and is assured of the benefits which they deserve, I am sure they will prove as efficient operators for the corporation as they have for the Government. I hope that the right hon. Gentleman, or whoever is going to negotiate with the men, will negotiate with the society collectively and that an agreed measure will be drawn up so that there will be no grousing after as to the way they have been treated.

On the whole, I think the House will do well to accept this Report and wait for detailed criticism until we see the necessary legislative measures which will have to be brought forward next Session. I hope that the line taken by the hon. Member for East Bristol (Mr. W. Baker) in regard to the criticisms of individuals not in this House, will not be followed. We have a certain pride that we are fair in this House and it is just possible that he may have been mistaken or misinformed. Therefore, I hope hon. Members who take part in the Debate will look at it purely as the findings of this Committee. I congratulate the right hon. Gentleman the Secretary of State for Scotland on the work he has done towards the elucidation of this delicate problem.

In the unnecessarily bitter speech of the hon. Member for East Bristol (Mr. W. Baker) I was forcibly reminded of the story of the old Scots woman who declared that there were only two Christians in the parish. One was the minister and the other herself; and she had some doubts about the minister. The hon. Member for East Bristol was as pathetic a figure as Diogenes when looking for an honest man. I did not come here to discuss the interests of financial magnates, names which are only known to me through the newspapers; I came to discuss what I thought was a very important national and empire situation, and the hon. Member for East Bristol was rather unfair in introducing a party note into this matter. In the little time that he devoted to the real subject he suggested that there ought to be imperial control over the whole cable and wireless services of the Empire. In suggesting this he overlooked the fact that the Dominions and India have definitely stated that they are not in favour of State control. In India, in South Africa and in Canada, these services are operated now by private companies, and in Australia, although the majority of the shares are held by the Australian Government, the operating of the services is done by a private company on commercial lines.

Does the hon. Member for East Bristol seriously suggest that we are to coerce the Dominions and force a State control on them which they do not want? The hon. and gallant Member for Montrose Burghs (Sir R. Hutchison) referred to the activities of the International Telegraph and Telephone Corporation of America. Anyone who has read the Report of that organisation with care must realise how urgent is the necessity for tackling this problem at once. The capital of that company has been increased from £20,000,000 to £50,000,000 during recent times, and it is quite obvious that, unless we have some sort of body such as is suggested in the Report of the Wireless Conference, we are going to be outclassed and hopelessly defeated. It has entrenched itself in a strong position at the moment, and if it is allowed to go on much longer it will be entrenched in such a position that we shall have great trouble in getting rid of it. Already it has penetrated Great Britain, France, Belgium, Spain, Italy, Austria, China, Japan, Mexico, Cuba, Brazil, and South Africa, and is working in close co-operation with other organisations in America which are backed very effectively by the American Government.

In this keen struggle for predominance what hope is there for a Government Department, even the best managed Government Department, to compete with one of these great corporations in America? Unless we are prepared to allow communications to pass from our control it is absolutely necessary to act, and to act at once. The scheme which is outlined by the Conference is one that will enable us to maintain the control we have, and will put us in a much better position to carry on competition with America. I am glad the hon. and gallant Member referred to wireless telephony. That seems the one flaw in this Report, because as it stands it will be possible for the Post Office to establish a competing telephone service. It is possible to carry out the whole telegraphic and wireless service on the beam system, and we are assured by Marconi, the inventor of the beam system, that it can be used for carrying on wireless telephony at the same time. Why should we have two organisations, two systems, for dealing with something which can be more effectively dealt with by one organisation? The hon. and gallant Member pointed out the prohibitive charge, £3 per minute, for using this telephone service.

We have a station at Rugby which was erected by the Government at the cost of £500,000. It has never paid anything, and I doubt if it is ever likely to pay anything. Are we now going to put up stations all over the Dominions as well as stations here? Surely the Secretary of State for Scotland, who has done his work in this Conference so efficiently and so well, can come to some arrangement with the Post Office whereby we shall have no competition of this sort between the merger company and the Post Office. Whoever is going to reply for the Gov- ernment, I hope he will give us some information on this point. Is the Government going to allow wireless telephony to be handled in the same way as wireless messages are now, that is to say, that there will be a connection between the Post Office telephone wire and the Central Office in London and that there will be no duplication and no increased cost?

6.0 p.m.

It is interesting to listen to the reference to the Pacific Cable Company. If one wanted an object lesson on the inefficiency of a Government Department in managing affairs of this kind it is surely provided by the Pacific Cable Company. That company in 1920 was making a profit of something like £500,000 a year. That profit has dwindled now to nothing, and I believe that to-day, instead of the company making any profit, it is making a loss. Surely this should be a reminder to us of the folly of the State trying to manage a concern which can be managed much better by private enterprise. I remember a discussion in this House when the Secretary of State for the Dominions was bringing in a Bill to consolidate the Pacific Cable Acts of 1901 and 1924, and the right hon. Member for Seaham (Mr. Webb) pointed out that this was a fine example of the effects of Socialism. If we had a few more examples like this of Socialism the Empire would soon become bankrupt.

Very little has been said regarding the beam system. Who made the beam system a success? Was it a Government Department? Indeed the Government threw cold water on the whole scheme. I would like to pay a tribute to three members of the Socialist party, the right hon. Member for Derby (Mr. J. H. Thomas), the right hon. Member for Colne Valley (Mr. Snowden), and the right hon. Member for Ogmore (Mr. Hartshorn), because it was they, in spite of the action of postal officials, who induced the Socialist Government of 1924 to adopt the beam system at all. The beam system has been organised and brought to a state of success, not by the Post Office, but by private enterprise. Now we are told that we are going to lose an enormous amount by discarding the beam system. I do not believe it. I believe that the Government is going to gain far more than it is going to lose.

What are the gains? They are at least two. First, the Government will be relieved of the Pacific Cable Company, which is now a losing concern. Secondly, there will be a co-ordination of all the services, with increased efficiency and lower cost so far as the public are concerned. The telegraphic system of the Empire at the present time is in the hands of eight different units, most of them pulling in different directions. How can we expect to have a general policy or an efficient system under these conditions? The only way in which we can get a cheap and efficient system is by carrying out the proposals contained in this Report, and by so doing I think we are going to render a great service to the Empire and to the country generally. The inventor has not said his last word with regard to wireless telephony or wireless telegraphy. I would like to know whether development is more likely to take place under Government control or under the spur of private enterprise. If we left the beam wireless service under Government control, it would be standardised; there would be no progress, and in fact in time we would have stagnation. For this and many other reasons I think that we ought, with the least possible delay, to see to it that the Report of this Conference is carried out.

I am not surprised at all at the remarks that have fallen from the humorous Member who has just resumed his seat, in regard to Socialism and the Socialists who had the intelligence to see that the beam system was something worth having. The hon. Member discounts our intelligence. May I put a question to him and to others who have spoken from the benches opposite? If the beam system as developed by the Government—

I thought I made it clear that the beam system has been operated by the Post Office and not developed by it.

If the hon. Member had known a little more of what the beam system was he would have known what I was saying. However, if this functioning on the part of the Government of the system had been a failure and had been making £500,000 loss instead of £500,000 revenue, would there have been the same anxiety on the part of so many people to try to get a hand in the pot? Not a bit of it.

I am sorry to interrupt again. The hon. Member said there was £500,000 of profit on the beam system. Will he give us the actual figures?

If it had registered a loss then you would be shouting out the other way about inefficiency and incapacity to conduct business. I know the argument. I always take the hon. Member as the best humorist in the House. But I am now dealing with statements made by others who have presumed to speak on behalf of the Government. If the beam system had registered a failure since 1924 there would have been a different cry. The anti-Socialists would have been pointing out that it was another demonstration of communal inefficiency. But as a matter of fact those who know a little about this system know that we are not even being told in the Report what the beam system really is, or what its present capacity is. We are not told anything about the possibilities of the beam or about what it can do today. For instance, we are not told about the carrying capacity of the beam compared with the cable. We are not told whether the beam system can send a message both ways. Every bit of information is kept out, and the reason is this: Those who are on the Government Front Bench dealing with it do not know a single thing about the technical side of the beam, and they assume that a Member of this House never wishes to have any technical information. That is the assumption on nearly all the questions that arise.

But take the Report. Here you have a Report which shows that the beam system is being operated and owned by the Government. That seems to be the cause of the greatest grudge on the part of those who are behind this thing. Then there is a reference to a reduction in the rates. Yet we have been told to-day by the Secretary of State for Scotland, who was in the chair at this Wireless Conference, that he was angry with the hon. Member for East Bristol (Mr. W. Baker). But the right hon. Gentleman took very good care to hide himself behind the names of those in the Conference. Dare he stand at that Box and deny that all the complications of individuals, as mentioned, really exist when you go into the question of taking over? The whole of that which was spoken of by the hon. Member for East Bristol the Secretary of State for Scotland purposely avoided touching upon. The right hon. Gentleman referred only to those who were in the Conference and never to that congregation who are mixed up with the cable companies. For instance, we were told on 21st May last by the hon. Member for Walthamstow East (Sir H. Greenwood): Interruption. ] I never say anything here that I cannot say outside the House. I was making a reference to the hon. Member for Walthamstow, East and his statement on 21st May that he had no interest in the Eastern Telegraph Company or the Marconi Company. I was wondering just what that meant that day, because I have been taking an interest in this subject since long before I came into the House, and especially in cables, because they always have interested me personally. I understand that the hon. Member is a member of the International Society of Hydro-Electrics.

In the Directory of Directors in the Library, I find this:

"Sir Hamar Greenwood is a member of the Societé Internationale Hydro-Electrique."

That is a French company.

As the hon. Member has raised the point, may I say that I am not a director of any French company. I am a director of a Belgian company which is interested in electrical developments in Barcelona and other parts of the world.

It is not wrong in the Directory. It is as I read it out. I copied it out myself. I understand this company is linked up with a power company.

Now we are getting right down clear. The shares of the Canadian Marconi Company were purchased by the Cushion Trust.

I am not saying that you have any connection with it. I am merely referring to the statement made in May last, and if the right hon. Member has any doubt about it, he can get it in the OFFICIAL REPORT. All this shows that the reference which was made to the Canadian side was defended by the right hon. Member without saying whether he was interested in it or not, and I asked the question with regard to that French or Belgian company, in order to make the matter quite clear, because I had doubts about the book myself from other investigations, and I wanted to make quite sure and to give the right hon. Member a chance of denying it.

I have not made any statement to withdraw. I asked a question, and the right hon. Gentleman has been good enough to answer it. This Canadian Marconi Company was purchased by the Cushion Trust. That Trust bought 1,238,658 shares in the Marconi Company at 4s. 2d., and they are standing now at 30s. The speech of the right hon. Gentleman on 21st May was to the effect that there were no flies on the Canadian business, and it would seem to me, in connection with what has been said by the hon. Member for East Bristol, that evidently on the Canadian side they were doing as much as was being done on this side in regard to the ups and downs of shares. The Postmaster-General as a Scotsman, with some consideration for logic and honesty, would I am sure say, if he were free to give his opinion, that this was the biggest ramp that ever took place under any Government. I thought the Electricity Act of 1926 was the biggest ramp I had ever seen, but this is much bigger, and all the intersecting companies, operating in this country by Canadian and American capital, and buying up what they call electricity futures in this country, since the Electricity Bill of 1926 became an Act, are the same group and the same type that are operating the cable company in this connection.

I am making no nasty remarks about the gentleman who fell out of the aeroplane, Mr. Lowenstein. I am making no personal remarks at all, but it was his group and other groups that were operating all these things, and to-day we find the same group, the same units, working all underhand, through what are called Government representatives at a conference supposed to be a conference of members of the Empire, when we know that the forces that were operating in that conference were pushed and regu- lated and put forward by the cable companies. I do not know anything more monstrous that has happened in Parliament in my six years here. To think that here are men claiming to be honest, upright business men, and when it comes to a question of fair honest competition, because that competition is in the hands of the Government, they are prepared to get men to offer to sell them up—and all this in order to secure what? You have statements made that all this is being done in order to secure the Empire and that all these different points of the Empire are going to be linked up by wireless. Yet, at the same time, we know to-day that you cannot be quite sure that you are not going to have listening-in upon any kind of wireless you use, because there are as big brains in other countries as in this country, and they are all working, especially on the wireless side.

Now we are told that, because of that possible leakage we have to get the cables, and we are making a present of the Pacific undertaking. The hon. Member for West Belfast (Sir R. Lynn) referred to it as an illustration of Government inefficiency, but he did not tell the whole story or he would have contradicted himself. The whole business underlying this Report is one mass of concentrated effort on the part of those financiers who see that anything which is allowed freedom under the State to develop, as beam wireless was developed by the Labour Government, is bound to show greater development and better returns than if it is held under private enterprise. The Report proves that. The reduction in price was the first change that brought about all this. When the cable companies had to face competition, when the price per word fell, they were driven to the point of finding some method of competing. Then they saw the British Government and the beam wireless—something they could not compete against—and they took the underhand way, having a Tory Government in power that they could pull. Now they are getting men to arrange the whole thing in such a way that what is the legitimate property of the British people is now to become the possession, not of the nation, not of the Empire, but of a conjunction of companies, especially cable companies, who have not a reputation which carries too far, as far as fair dealing is concerned.

The hon. Member for Springburn (Mr. Hardie) has apparently been searching for some record of mine which would not be to my credit.

The statements which the hon. Member made lead me to believe that what I have just stated was the fact. If it is not the fact, I am very glad indeed.

I appreciate any interest on the point. I said in the previous Debate on this very important question that I was not interested in the Great Eastern Telegraph Company, nor in the Marconi Company, and I am sure that the hon. Member for Spring-burn will accept—after research—my statement as a statement of fact. The hon. Member for Springburn and the hon. Member for East Bristol (Mr. W. Baker) have brought into this Debate very severe criticisms—indeed, as far as the hon. Member for East Bristol is concerned, very abusive criticisms—of many individuals who are not Members of this House. I have always been led to believe, and I think it is a sound principle, that a Member of the House of Commons should never make a statement inside this House that he is afraid to make outside. We occupy a position—whether right or not I am not quite so sure—

I shall deal with that, without the use of one abusive epithet. I was saying that Members of this House are privileged in law to say what they like but I have never known that fine rule which I have mentioned to be broken, and that privilege to be taken advantage of to the extent which it has been taken advantage of by the hon. Member for East Bristol to-day. He said that the policy recommended by the Report of the Imperial Cable and Wireless Committee was a conspiracy to rob the Empire, and a campaign of knavery and treachery. Who are the knaves and who are the traitors?

The hon. Member for Silvertown (Mr. J. Jones) must not make remarks of that kind.

I am very much obliged to you, Sir, but it is almost impossible to tell who are the knaves.

It is beyond the power of the hon. Member to hurt me. The point which I am making is this, that the knaves, robbers and traitors, if they exist, are the gentlemen who signed this Report representing the Dominions, the Colonies, the Protectorates and the Home Government of the British Empire. That reflection, which is not taken seriously in this honourable House, may be cabled or wirelessed to different parts of the world, where it will be welcomed by the enemies of this House and of this country and of the Empire. It is a reflection upon this Imperial Conference, which is the most important Conference that has met since 1926.

The reference of the hon. Member for East Bristol to one member of that Conference whom I happen to know, namely, Sir Campbell Stuart, is one which I cannot pass in silence. Sir Campbell Stuart is a distinguished Canadian resident in England, and in this Conference he represented the Prime Minister and the Government of the Dominion of Canada. I should have thought that that status was sufficient to protect him from any criticism from any Member of this House. Yet we have Members of the Opposition using such terms as I have mentioned in reference to this great Conference which, for the first time, we understand, in history, has come to a unanimous decision on a great commercial or business matter. If the representatives of the great Dominions are to be treated as they have been treated this afternoon, it will undoubtedly have reactions in our Dominions which I for one will deplore and which I am sure hon. Members opposite on reconsideration would deplore. I congratulate the Secretary of State for Scotland on his chairmanship of this body of Imperial representatives which met to consider a question full of difficulties and raising conflicts of opinion. Happily the discussions resulted in unanimity and, I think, this is the greatest example in times of peace of Governmental and commercial co-operation in the history of our Empire.

I would remind the House of the origin of the Conference. It originated in a protest from the Governments of Australia and Canada in reference to the unfair competition of the beam system with the Pacific Cable Board system. Australia and Canada have found large sums of money to build and maintain the Pacific Cable Board system. Recently there has been increasing expense but, I am sorry to say, there has not been increasing profit from that system. It has become a financial liability to those Governments and to the Treasury here. It has also become an irritant in every Government in the Dominions, and, apparently, an irritant in this House of Commons. In fact, the old system was a thistle in the Imperial bed and I congratulate the Secretary of State for Scotland on picking out that thistle. On the top of that irritation, the Post Office in England was operating the beam system which overlaps and undercuts the Pacific Cable Board system. This naturally increased the financial liability and the political irritation of the Dominions interested. If that had gone on, the result would have been ruin for the Pacific Cable Board, of which Board several Dominions were shareholders together with His Majesty's Government. It is an amazing criticism of Government ownership that His Majesty's Government and these Dominions should find themselves with an increasing liability, owing to another Department, namely, the Post Office, entering into competition with them. The adoption of the policy of the report will at once remove the irritation and the liability. It will increase the financial revenue of the Home Government which certainly needs it and will, to the extent at any rate, of relieving liabilities, improve the financial position of the Dominions interested.

Will the right hon. Gentleman explain one point? If you had this sort of artificial competition between two Government Departments, was not the obvious thing to have one Government board, instead of handing the whole thing over to private enterprise? That is our point.

My answer to that is that this is an Imperial question. It is not a question that depends only upon the Government of this country or upon this House. This House has no longer, since the Imperial Conference of 1926 at any rate, power to order the Dominions of the Crown. There must either be co-operation or chaos. We had arrived at a state of chaos in reference to these Imperial communications and a Conference was called, which came to a conclusion—not only His Majesty's Government, but the whole Conference, representing the whole Empire, the 50 odd different parts that make up the Empire—after six or seven months' deliberation and constant interchange with their Governments overseas, that the only solution of this present state of chaos is to hand over the British Government's control of the cables and wireless to private enterprise, reserving to itself this Imperial Advisory Committee, so that rates would not be arranged without the consent of this Committee, and, further, that there would be no static condition in the development, but that there would be a continuous development in the way of extensions of cable and wireless stations and so on, in the interests of the British Empire. I have tried to answer the question put by the hon. Member.

The right hon. Gentleman has not answered the point that I raised. He said that one of the bad results of public ownership was that you had two competing Government services. Surely the answer to that is to get one Board, which should take over the liabilities of which the right hon. Gentleman spoke, and prevent competition. The right hon. Gentleman has not logically gone on from his own argument, because he says that the solution of the difficulty of two competing Government services is not to have one Board to co-ordinate them, but to hand over the whole thing to private enterprise.

I suppose it was too much to expect the hon. Member to agree with me, because I am a believer in private enterprise, and I understand that she is not. I believe in private enterprise, and, therefore, I support the Report, and I hope the hon. Lady will remember that this is the Report, not of this Government which she opposes, but of every Government in the British Empire, which I am sure she supports. Further, I believe in the Report and in private enterprise, because it is impossible in these days to develop these great services by means of Governments, for the reason that Governments are too poor. [ Interruption. ] I do not know whether the hon. Lady has ever tried to get any money out of the Chancellor of the Exchequer—

The fact that he does not give it does not say that he has not got it.

Everybody admits that the taxes are as high as they ought to be and national expenditure as great as it should be, and it is impossible for Governments any further to finance great commercial enterprises, and this is a great commercial enterprise. The companies which take over these Government-owned cables and wireless will be able to develop them in a way that no Government possibly can.

Because, for one thing, I have heard the condemnation of expenditure by hon. Members opposite. Therefore, I hope the hon. Lady will see that it is not only this Government that supports the Report, but that it is the first time in the history of our country that the unanimous support of the overseas Empire has been obtained for a commercial enterprise of this kind. I would say, in conclusion, that whatever the individual views of a Member of this House may be as to the rights or wrongs of State ownership or private ownership, surely the overwhelming fact to-day is this, that we have a united Empire endorsing a Report. I would hope that this Mother of Parliaments would rise to the occasion and support all the overseas Dominions and Colonies in advocating the transference of these services, which, with the exception of the beam, are all declining services, to private enterprise, which will make for their development. Their development will mean decreased rates and that we are rapidly approaching the time when the humblest home in England will be put in contact with the humblest home overseas. It is because I believe that this makes for increased business and trade within the Empire, closer communication, greater development, and the advantage of this country and all of us that I support this Report.

I do not propose to follow the line that was taken in the opening speech of my hon. Friend the Member for East Bristol (Mr. W. Baker), for the simple reason that I want that speech to stand by itself, so that when it is read it may be judged in its integrity. I want to take another line and, as far as I can, to avoid trenching on the very wide ground that has been covered. But first I think I should enter some demurrer against the protests that have been uttered by the right hon. Member for East Walthamstow (Sir H. Greenwood) and others against my hon. Friend's mentioning or attacking persons and individuals who may not be in this House, if he thinks that by so doing he is able to advance the case that those people have been acting detrimentally to the public interest and the welfare of the State. Is it not written large in the records of this House that again and again, owing to the privilege that this House affords Members, often people of humble circumstances and limited means, Members have been able to attack powerful and big interests which have been acting to the detriment of the community?

As I understand it, my hon. Friend has acted in that manner, and it remains for other hon. Members in this House, not to try to ride away by merely endeavouring to sweep the attack aside, but to disprove the statements that my hon. Friend made. As to the theory put forward by the right hon. Gentleman that Members should only say here what they would say outside, there are all sorts of things that men would find it impossible to say, things which are perfectly honourable and right and in the interests of the community, unless they sought the privilege that Membership of this House confers upon them. It is from that point of view that I suggest that my hon. Friend's statement has to be considered, and up to now I have not heard a single word in refutation of the case that my hon. Friend put up and of the charges that he made. I do not repeat them, because I have not the knowledge or the information—my field of research has not gone in that direction—but I say, and I think the right hon. Gentleman will admit, that it is the duty of Members of this House to meet those charges in Debate across the Floor and to refute them if it is at all possible.

When my hon. Friend referred to robbery and treachery as quoted by the right hon. Gentleman who has just sat down, he did not by any means refer to the signatories of this Report, and it is distinctly unfair to suggest that he did. He was suggesting that there were certain capitalist interests outside—he gave chapter and verse—and that, owing to the rigging of the market and to the expectation, as he put it, of this Report, shares had been jockeyed up on the Exchange from 1½d. till now they amount to £2 or £3 each. He quoted those things, and his case was that these gentlemen who had signed the Report were the victims of people who had acted in that manner, and, therefore, that the Government ought to be protecting them and the State against people of that sort. That is his case, as I understood it, and it is not fair to suggest that my hon. Friend the Member for East Bristol in any way cast reflections on the representatives of our overseas Dominions or those who were called upon to do a difficult task. I admit that the right hon. Gentleman the Secretary of State for Scotland had a difficult task to do, and whether or not we agree with his verdict, we all know the ungratefulness that follows this kind of work, and we accept that it was done in the right spirit; but that does not say that we have to accept the Report or that we agree in any way with its findings. I take this opportunity to say—and here I am qualified to speak on behalf of the Opposition —that if the Government commit themselves to the Report, as they do, we on this side hold ourselves free to take whatever action we may think expedient or desirable in the public interest.

I want now to touch on one or two points raised in the Report, and, first of all, to say that we have had to accept this opportunity of a preliminary discussion on the Report, but we are expecting that there must be legislation to follow, and that that will give an opportunity to discuss in greater detail much that arises out of the Report. The Secretary of State for Scotland said that my hon. Friend had not in any way dealt with the subject under discussion and that he had rather confined himself to an attack on individuals, and then he proceeded to ask, "What is the problem?" It is quite impossible to get a fair survey of this problem or to answer the question, "What is the problem?" if the right hon. Gentleman or anyone thinks that we can start only from the publication of this Report. The roots of the story go back very much further than that, and the House might be reminded that again and again during the past 20 years there have been echoes of this case in this House. It has been a long story of the struggle of interests outside to gain control of this great system of communications and to wrest it from the State.

How is it that, in spite of the fact that repeated Imperial Conferences have passed Resolutions expressing the opinion that these things should be in the control and ownership of the State, in spite of such Resolutions being confirmed by successive Governments afterwards in this country, some powerful influences have been at work which have been able to set them aside and render them nugatory? That is the problem that we have to consider, and I say that we have now arrived at a position where the Government have been found willing to set aside the decisions of past Governments and of Empire Conferences and to hand over to these private enterprises a service which has worked in the interests of the State and which has been worked advantageously by the State. That is what we have to consider. I am reminded that my hon. Friend, on 21st May last, when he opened the Debate on this subject, asked, among other questions, why it was that the Secretary of State for Scotland has been appointed Chairman of the Commission. I am not sure that even now we have found an adequate answer. I wonder if it is the fact that his Department is the only Department that did not pledge themselves to a Resolution which was issued to the Press in May, 1922. This Resolution was signed by the Treasury, the Admiralty, the War Office, the Air Ministry, the India Office, the Post Office, the Foreign Office, the Colonial Office, and the Board of Trade. It said: to about £212,000 a year—not a bad business on an expenditure of £470,000. I use the word "surplus" advisedly, and not "profit" in this connection.

It is because that business is showing such resilience and such elasticity that I venture to say that we have the scramble which we see at the present time. The hon. and gallant Member for Montrose (Sir R. Hutchison) said that he was not concerned so much as long as the Government had control. But they have not control. The proposal made in the Report in a mere sham, as far as control is concerned. It does say, it is true, that certain nominees to be approved by the Government shall be on the Board, but it is to be noted that these are to be nominated first of all by the cable companies, and afterwards approved by the Government. That amounts to practically nothing, and simply means that the interests will take a dominating position all the time. When the record of this Government comes to be written, one of the ironies of the position will be, when one considers the character and the temperament of the Prime Minister, that as far as the interests are concerned, there has been more corruption, and more interests have had their arms right up to the elbows in the national till than probably have been found under any Government for many years past. I am sure one has only to look back over all the concessions that have been made here and there to varied interests—landed interests, big Super-tax payers, electricity people and a thousand and one other interests. The statement of the late Lord George Hamilton that the duty of the Conservative Government is to look after its friends has been carried out to the letter by this Government. One also recalls that a relative and namesake of the Foreign Secretary and the Minister of Health himself indicated, regarding certain fiscal problems, that he would be able to gain more in an hour or two in the Lobby of this House than he would be able to do in a year of hard work. He referred to Protection, that expedient of the defeated and incompetent. We have seen something of that in the demand that has been made for Safeguarding, and this present instance is an extension of the same story.

Why was the inquiry held after all? The reason is set out in paragraph 5 of the Report, namely, that it was owing to the competition that has been set up by the beam wireless. That has been developed and worked by the State. Somebody has made reference to the fact that we should get much better development of the service under a merger of the cable companies than there would be by the State. Does history confirm that? One of the witnesses, who appeared before the Committee, Mr. F. J. Brown, a, former high official of the Post Office, now with the cable companies, delivered a lecture at the Borough Polytechnic and he said: game by competition. Why not let them fight it out? There is no consideration, as far as the multiple firms are concerned, given to small traders and small capitalist concerns outside. Why not let the wireless meet this competitor on equal terms? Again, we find that the cat is let out of the bag by this gentleman, Mr. Brown. In the course of the same lecture he referred to a probable merger, and said:

The terms of the transfer as laid down in this Report are absolutely ridiculous. It is to the effect that we should hand over a lease for a period of 25 years at a basic sum of £250,000 per annum. Already we have seen from the figures what tremendous possibilities there are in this service. Then there is to be an additional equivalent of 12 per cent. above the standard revenue for certain services, and there is to be a payment of £60,000 to be paid in such manner as may be agreed. Then the directorate is going to be packed; that is what it means, because although they are to represent the Government, they are to be nominated by the cable companies. Another point which has already been referred to is the danger in war time. It is agreed that one of the reasons why the last War was prolonged as it was, was the leakage of information in the early days of the War as far as the cables were concerned. If in times of great emergency it is expected to carry through so great a change smoothly, without exposing the nation to danger, I have not a very high regard for the business acumen and judgment of persons who think this. We shall have the State in association with the great Marconi Company a company bearing a name that ought to be honoured as that of one of the greatest inventors and scientists of the time, but which instead is associated in the public mind with shady finance, and with a company whose record of finance is such that no decent business man likes to be associated with it. This company is going to be placed in a paramount position in the new concern. We have had already had communications from the MacKay Company in America that they are simply going to carry out their master's voice, and they have been told that when this merger comes about they will be in a position to talk on equal terms with the American combination on the other side.

7.0 p.m.

My hon. Friend has already given some indication that there are some linked interests even between the American company and the new merger that is proposed. Apart from all these things, although it is difficult to speak here in the interests of the State, since the majority would sooner sell the community, I must point out that the whole of the newspapers of this country are in the hands of practically four or five people. The effect of passing the merger is going to be that the whole of the sources of news will be in very few hands. This nation and the world will be faced with a position of having a few people with the whole control of the sources and supply of information. They are often linked up as in the case of the "Daily Mail" and Beaverbrook Trust. They will control the daily Press, public opinion and the sources of news supply. All these things will be jerrymandered and our national life, the health of the nation, will be poisoned at the source.

That is the danger that this opens up to us. For that reason, if for nothing else, all Members of the House, who have any concern for the future development of this country on right lines ought to reconsider the position they are placed in. Hon. Members representing the Government have again and again sacrificed national interests in the interests of certain big financial concerns. They have done so largely because they fear the political and economic aims of the party on this side. That is a very dangerous road to travel. It is far better to let matters be fought out by the ordinary development of opinion and of the thought of the people than to seek to jerrymander things in this way. Although for a time this may place them at an advantage, because their friends will control the sources of news and the distribution of news, the day of reckoning will come, and it will be very much heavier not only for them but for the State as a whole, because this sort of thing has been allowed. Therefore, although we cannot, owing to the exigencies of parliamentary business, record any vote against this, at the same time, on behalf of the Opposition, I say that they do not feel themselves bound in any manner by any contract or any agreement into which the Government may enter upon this Report.

I was not in the House when the hon. Member for East Bristol (Mr. W. Baker) spoke. I understand that the hon. Member made a personal attack upon me. He did not, I may say, have the courtesy to tell me beforehand that he meant to attack me, otherwise I should have been here. I have made it my business to find out, as far as I can, the charges he made against me. As far as I understand, the whole of his speech was a series of personal charges. To the hon. Member nobody who differs from him, be he a politician or a business man, can possibly be honest. I understand that the chief complaints he has against me are two. First of all, he complained that I was connected with certain financial newspapers. It is quite true that I am. I have yet to learn that journalism is a crime, and I certainly maintain that honest financial journalism is perhaps the thing that is most needed in these days. But he went on to say that I had spoken in favour of private ownership or public utility ownership, and against ownership by the State. The implication of his speech was that I had a corrupt personal motive in making that speech. Either he meant that or he meant nothing at all.

Perhaps the House will allow me a few minutes to go through what I said, and give the reasons why I made the speech I did. I pointed out to the House the danger of the State acquiring an undertaking which might decrease in value. I said, first of all, that the cables were a wasting asset. All the world agrees there. I said also that the beam wireless was not certain to be so valuable as it appears now. After all, the beam was only the invention of yesterday and it may be superseded. I pointed out that where the ratepayers' money is invested in an undertaking like tramways or power companies a large amount is often lost, and I went on to say that where private individuals invest and lose their money it is the concern of no one except the person who has lost the money. Where, however, the taxpayers or ratepayers' money is lost, it is a very grave thing, and we ought to be very cautious indeed before we invest the money belonging to the State or to public authorities in certain investments. I should have thought that that was a very reasonable and proper view to take.

May I say now that I made that speech in what I believed to be the public interest, following what I thought to be my duty as a Member of Parliament. May I assure the House that I have no sort of interest, either direct or indirect, in any single cable or wireless company. Some argument was made by the hon. Member for North Camberwell (Mr. Ammon) as to how far a Member of this House might go in attacking persons outside this House. I agree with him that, in exceptional cases, that right ought to be exercised, but, surely, the great privilege that is conferred upon Members of this House ought to carry with it a high sense of responsibility, and Members ought not to attack people unless they are perfectly certain of their facts, and unless there is some big cause involved. Above all, where they have a bad case they ought not to ride off on personal abuse. When an hon. Member sees fit to attack another, it is his business to warn the other Member that he means to attack him, inform him of the nature of the attack and give him a full opportunity of answering it. That chance was not given to me.

I have received no notice whatever. In fact, it was only when I got into this House that I was told the attack had been made. I do not think that it adds to the prestige of this House that great questions should be discussed in this way. After all, this Debate will be cabled all over the Empire by cable or wireless, and this Parliament will cut a very poor figure when it is realised that one of the great parties of the State only uses the method of personal abuse to defeat this great reform. There is a great deal more behind this than the mere personal question. It may be that certain individuals have taken advantage of what they believe is going to be the case. I do not know whether they have or have not. But here you have a Committee representative of the whole Empire. They come to certain conclusions, and those conclusions are brought before the House for a Debate that ought to be a solemn Debate. The whole Debate has been deflected and turned aside by the unjust and reckless charges made by the hon. Member for East Bristol. For my own part, I repudiate those charges. I do not think that they ought to have been made. I do not think that any Member ought to accuse any other Member of corrupt personal motives unless he tells that Member beforehand.

If the hon. and gallant Member for Ripon (Major Hills) tells the House that he has no interest in telegraph concerns or any other cognate concern, we on this side accept his statement at once, and, if hon. Members opposite care to follow that lead, we are in their hands. It is not, however, so serious a thing to attack an individual, or, for that matter, to injure an individual, as it is to attack and injure the State. According to our case, the case of the hon. Member for East Bristol (Mr. W. Baker), apart from such irrelevancies which may have appeared to hon. Members opposite and which, for my part, I did not see, we say that here is a deliberate, malicious, carefully thought out, capitalist inspired attack upon the interests, not merely of the people of this country, but of the people of the Empire. That case has not been met by a single speech delivered from the benches opposite this afternoon. The assumption underlying the Debate is that Members on the other side of the House, anxious to promote the interests of the Empire, are not at all concerned about financial considerations. All I can say about that is that it is a very strange thing that a service of admitted imperial importance, the vast potentialities of which would be recognised by everyone here, a concern that is the essential prerogative of State action, should now be acquired on objectionable terms—I speak in a financial sense—by a private concern.

An alleged argument was submitted by the right hon. Member for Walthamstow, East (Sir H. Greenwood). He said a most amazing thing, and the hon. and gallant Member who has just sat down followed him. He said, "Here is a unanimous Report. Ergo it should be accepted." That is a very strange argument. The right hon. Member for Walthamstow, East, was at one time Chief Secretary for Ireland and Southern Ireland, as we then well knew, was unanimous in respect of certain ideals, certain proposals of a legislative, political and social character. Did the right hon. Gentleman as Chief Secretary for Ireland accept that unanimity? Did he say that, because the people of Southern Ireland were unanimous, we must accept what they said? By no means. We have had reports submitted to this House on a variety of subjects time and again by experts. They have been turned down time and again by capitalist Governments. What is the good of using an argument of that sort? To call it unanimous is no reason why we should accept it. At all events, it ought to be submitted to careful analysis, and that is what has been done by the hon. Member for Bristol, East, and his challenge has not been met.

The strangest thing of all was the melodramatic utterance of the Secretary of State for Scotland. When he was, as he thought, replying to the hon. Member for Bristol, East, he started off at a terrific rate with almost an outburst—which was surprising in his case, as he is so subdued on other occasions—parading his honesty—I am speaking of the right hon. Gentleman—and his virtues as a member of the Committee; but when he came to deal with the actual facts of the situation ht said nothing at all, and we are entitled to ask for a reply to the case which has been presented. Something has been said about the advantage that will accrue to the Empire. Let me examine it. Is there to be a financial advantage? According to the right hon. Member for Walthamstow, East, there is, but when I examine the Report I find that the financial advantage is very small indeed, and the Secretary of State for Scotland said little or nothing about it. Perhaps whoever is to follow on the Government side will tell the House what is the financial advantage which will accrue to the Empire from the acceptance of these proposals.

Then what about the other advantages? It is admitted that this is a system which is bound to develop in the course of years. Is there to be any advantage to the Empire on the technical side? Can the system be developed to a higher degree by private enterprise than by the State? If that is the argument of the other side, it is a very serious reflection on the postal service, for if a Government Department such as the Post Office cannot conduct the operation of this business in conjunction with similar Departments in the Dominions, then it is high time the Government had the courage of their convictions, as had the Noble Lord who is sitting opposite, and told the country that the postal service should be relegated to private enterprise.

While I am on that point I would sumbit very respectfully that the Postmaster-General has been very subdued in the course of this discussion. Is it not a strange thing that the one man who is concerned with this proposal has remained quiet? [ Interruption ]. Perhaps the right hon. Gentleman will say so himself. We have heard the Secretary of State for Scotland, we have had the Noble Lord the Assistant Postmaster-General interjecting, and we are to have the Secretary of State for the Dominions, but although this is essentially a Post Office question the Postmaster-General himself has said nothing at all. I submit that we are entitled to expect some statement from the Postmaster-General. May I, with due respect, put this to the right hon. Gentleman? Does he accept these proposals? If he does, will he say that he does? Or, may I put it to him, does he reject these proposals? If so, why not tell the House and give the reasons? There is no response from the right hon. Gentleman, and there is to be none, and therefore we can only come to the conclusion that there is at least one right hon. Gentleman on the Government side who disapproves of the proposals, or at any rate of some of the proposals, embodied in this Report. Another split in the Government! More dissension in Government circles! That is not by any means a good augury for the future success of the Government. But at all events the Dominions are surely entitled to learn from the lips of the right hon. Gentleman what he thinks about this Report. If I may say so to him, he should not mind what the right hon. Gentleman who is sitting beside him thinks. He often whispers in the ear of gentlemen on the Front Bench to their discomfiture. He should take no notice of what his right hon. Friend says. If the Postmaster-General has got convictions, let him have the courage of his convictions and say exactly what he thinks about this matter.

I do not want unduly to detain the House, but there are one or two other points I wish to make. The hon. and gallant Member for Ripon talked about the decrease in value of the existing system. He said there were wasting assets; I think he referred to the cables. I know little of the technicalities of this subject, but as one having only a superficial knowledge, a very superficial knowledge—I admit it, and I do not know that others are so generous—I put it to the hon. and gallant Member that the cables to which he referred are of very little importance, that the important thing is the system itself.

I agree that the cables are essential as a medium of communication, but I put it that the cables as a part of the machinery are as nothing compared with the system itself. It is the concern, it is the potentialities of the system. To say the cables are a wasting asset is not by any means to disparage the proposals which have been made on this side that the State should undertake the task of Imperial communication by wireless, and so on. Then the hon. and gallant Member said something which I thought very strange indeed. He said the taxpayers' money must be protected. That is precisely what we think. But the taxpayers' money is not something which is essential to the present, it is a thing of the future, and if by means of a State undertaking we can obtain further revenues for the State, surely we have a right to see development along those lines. The hon. and gallant Member disapproves of that, but how does he know? Surely I am as much entitled to say that a State undertaking of this kind will be successful in a financial and in another way as the hon. and gallant Member is to say that it will not be successful. He knows no more of that than I do, because it is purely speculative.

Further, it has been said by him and by the right hon. Member for East Walthamstow that the State must not undertake a future liability. Are we seriously to assume that a, number of private enterprise capitalists, the owners of private property, financiers and the like, are prepared to undertake the liability themselves? Surely when they enter into a compact of this sort they must know that there is something in it for themselves, that there is a profit in it for themselves. If the hon. and gallant Member will give me an assurance that they are entering into this compact without any confidence that there is profit in it for themselves, I am prepared to take it on his word. Of course he will do nothing of the kind. He, with all his virtues—and I accept them at once—will not enter into any financial or industrial undertaking without some assurance that he is going to derive revenue from it. That is the capitalist method. But when he says, "Here are capitalists who are prepared to undertake a liability which the State should not be called upon to undertake," we simply do not believe him, and if I am accused of being harsh and abusive because I say that I must leave myself in the hands of the House.

In my final word before I sit down I would say, "Here are all the possibilities for State development, and not alone for State development but for Imperial development." I would appeal to the Secretary of State for the Dominions. Surely he, with his desire to develop the Empire, his desire for the cementation of the Empire, for bringing the people in the Dominions and the United Kingdom into contact, will not disparage a proposal that comes from this side that the Dominions officially, through Government action, should undertake the charge of the imperial communications. If the right hon. Gentleman argues in a contrary sense, I must confess that I cannot understand his patriotism and his desire for Imperial Development. I submit, in conclusion, that the speech of the hon. Member for East Bristol imputed charges which were not essentially abusive, but were of a general character dealing with the interlocking of capital in this country, and, particularly, that the speech imputed charges which have not yet been met, and which in the main made out a case for State enterprise in this matter, which I am bound to say will eventually have to be accepted by this or some other Government.

I did not intend to take part in this Debate, but the Member for East Bristol (Mr. W. Baker) in the course of his remarks, referred to a member of my family and impugned his honour and business integrity. Of course, as he is a near relation to me any defence that I could make of his honour and integrity would be discounted by hon. Members opposite, but I am proud to say that his reputation, both public and private, inside and outside this House, is quite sufficient defence to any charge of that kind. I should also like to say this, that it is a curious thing that, to a large extent, the statement made by the hon. Member for East Bristol is a sort of rehash of certain statements made by a Mr. Nordon who, for a considerable time, has made very violent attacks upon the Board of the Marconi Company, and has issued numerous pamphlets. I should like to tell the House that those statements were entirely disregarded by the shareholders, that they were also entirely disregarded by the Court when the question of a reduction of capital was before the Court, and, because of their nature, they have hitherto been entirely disregarded by the individuals who were attacked. Therefore, I feel that the House is able to judge for itself the value of some, at least, of the statements made by the hon. Member for East Bristol.

I am very glad that the hon. Member for Linlithgow (Mr. Shinwell), as well as the hon. Member for North Camberwell (Mr. Ammon) did not join in the campaign of personal abuse against persons inside and outside this House for which the hon. Member for East Bristol (Mr. W. Baker) and also, to some extent, the hon. Member for Springburn (Mr. Hardie) made themselves responsible. With regard to such personal attacks upon those who are not here to defend themselves, I would only say, with my hon. Friend behind me, that, if they are made in this House at all, they ought to be made with a grave sense of responsibility, and I can only add that I am glad that I do not live with so mean an opinion of my fellow men as is apparently entertained by the hon. Member for East Bristol.

I understand that the right hon. Gentleman is under the impression that I made a personal attack upon the hon. and gallant Member for Ripon (Major Hills), and that the hon. and gallant Member himself, who was not present when I was speaking, is under the same impression. If the hon. and gallant Member has obtained that impression, he has been entirely misinformed, and if he condescends to read my speech in the OFFICIAL REPORT to-morrow he will find that my remarks with regard to himself were of a kindly character. [ Interruption. ] I am speaking within the hearing of persons who heard me. I say they were of a kindly character. They may not have been as grave as they should have been, but they were in no sense a criticism of the hon. and gallant Member personally. All I commented upon was his remark in the last Debate that there was a danger of losing the taxpayers' money.

When I came into the House I was informed that an attack had been made upon me by the hon. Member for East Bristol (Mr. W. Baker). Accordingly, I got hold of a Press report of the speech referred to, and I think when the hon. Member reads that speech he will agree with me that it was a personal attack of a very gross character, and, if it meant anything at all, it meant that I had made a speech in this House advocating a cause which it was my own personal interest to advocate. I am glad that the hon. Member repudiates that suggestion, but I think he will find when he reads his speech to-morrow that my interpretation is a correct one.

That is a matter for those concerned. The business of the Government is not to meet charges directed against individuals outside or inside this House, but to deal with charges against their own competence in dealing with public interests. There is only one exception to that rule, and it is when attacks are made, not only upon unofficial individuals outside, but upon the representatives of other Governments in the Empire, and in this case made by the hon. Member for East Bristol in reference to a distinguished representative of Canada. This charge was made in more general terms by the hon. Member for Springburn against the Conference representatives generally, and it is the duty of any Member of the Government present when such charges are made warmly to repudiate them.

I do not know whether the right hon. Gentleman was in the House when I referred to foreign representatives, but I spoke of them as being the gentlemen who had put their names to the Report. I made no reference to those who represent this country in any part of the Empire, and I think the right hon. Gentleman ought to apologise for making that statement.

If that is so, then shall be glad to withdraw any charge which is unfounded, but here again I think hon. Members will be able to judge for themselves when they read the report of the hon. Member's speech. My task is to deal with the charge made against the Government by all the hon. Members opposite who have spoken, namely, that this has been, to quote the hon. Member for Linlithgow, "a deliberate, malicious, capitalistic attack on the interests of the public of the Empire." The hon. Member for Springburn spoke of greedy capitalists eager to seize on a profitable affair, with the connivance of the Government. Let me deal with that charge. The whole of this business arose, not at the instigation of any capitalist, and not because any capitalist was suffering injury by the Government beam service, but because the Governments concerned in the State-owned Pacific cable were suffering from the competition of the State-owned beam system.

In November last the Government of Canada, followed by the Government of Australia, made a request for a Conference to discuss the very grave Imperial problem that was arising out of the unregulated competition between the wireless and the cable system. The hon. Member for North Camberwell (Mr. Ammon) suggested that these systems should be allowed to fight the matter out themselves. It is news to me to learn that hon. Members opposite are in favour of unrestricted competition. Here was an instance where unrestricted competition was likely to lead to results which were not in the public interest. It was likely to put an end to the cable service. That would have been against the interests of the Empire, both from the point of view of defence and of commerce. The absolute certainty and the secrecy of the cable system is essential to the commercial as well as to the strategical well-being of the British Empire. Therefore, the Conference assembled to see how this unrestricted competition could he effectively met.

The conclusion of that Conference was that the only efficient method of dealing with the problem which would preserve the cables, and at the same time allow the fullest expansion and development of the new system of beam wireless, was that a single unitary working control should be created for the whole system, both of cables and wireless. Hon. Members may say, "Very well, why not a unitary control by the State?" I ask which State? [An HON. MEMBER: "All the States!"] I am glad to find that hon. Members opposite no longer think that this Government and this House can control the whole of the cable communications of the Empire. But control by all the States implies consent on the part of the other States concerned, and none of them were agreed or prepared to establish a State-owned system which would not only continue the Pacific cable and the British beam system but would have involved the acquisition of the private wireless companies and the private cable companies.

May I ask if the representatives of the Imperial Government used their influence with the repre- sentatives of the Dominion Governments to induce them to adopt an Imperial Service.

The whole thing was argued from beginning to end and there was no question of the Dominion Governments taking part in any inter-Imperial Government-owned unitary system. The Pacific Cable Board has rendered great service to Imperial communications, but it has illustrated some of the difficulties which arise out of State action when it is not only the action of one State but the collective action of a whole group of States. Therefore the Conference concentrated as far as possible on securing all the advantages of State control with the provision of a single Imperial communication system throughout the whole Empire, enjoying the freedom and flexibility in administration of private ownership, but in every direction limited and controlled by inter-Imperial advisory machinery.

The hon. Member for North Camberwell spoke of the control as a sham because the two British Government directors are to be put forward by the company before their appointments are confirmed by the Government. I do not think that makes any difference. In any case that is only a small part of the control. The real control lies in the fact that the capital of the company is limited to earning 6 per cent. and while there are financial inducements to greater efficiency beyond that 6 per cent. interest, half of the surplus profits earned must, in accordance with the advice of the Imperial Committee, be devoted to the lowering of the rates and the improvement of communications. Hon. Members opposite spoke as if this were a question of the Government beam system being handed over to private interests. As a matter of fact it is not handed over at all, but it is leased on terms which secure the Post Office not only £250,000 a year but 12 per cent. on the increased profits not of the British beam system but of the whole system. In that way we have secured a scheme which gives us all the advantages of Empire wide organisation and the freedom of private enterprise. It also gives us sufficient and effective control in the interests of the whole Empire.

That is the Imperial system which we have created and if the other Governments of the Empire co-operate with us, the system will be looked upon in future days as a great landmark in Empire development.

The very fact that an agreement could be arrived at on so difficult and complex a problem with Governments of the Empire holding different points of view, reflects not only the greatest credit on my right hon. Friend and all those who have been associated with him in this work, but it is also a great landmark which shows that the building up of Imperial unity, not on the basis of control but on the basis of free co-operation, can be made to succeed. If this agreement had been ratified not in London but at Geneva, and if it had been made, not between the Governments of the Empire but between a group of foreign Governments, I believe every hon. Member on the opposite side of the House would have held it up as an example of fruitful cooperation between the nations, and would have laid stress, not upon the element of private ownership which has been retained but upon the fact that these nations had agreed between themselves to control in the common interest a privately organised utility corporation. Now that this matter has been discussed at such length, I hope that the Motion before the. House may be withdrawn.

It is very interesting for us to have an occasional lecture from the Secretary of State for the Colonies. The right hon. Gentleman has been round the Empire on the beam but we want to get down to brass tacks. We want to deal with modern improvements in regard to our communications. Sometimes we are told that our bodies and souls belong to our country, and occasionally we are told, when there is profit to be made, that the State must have nothing to do with it. Some of those who have spoken here this afternoon have done very well out of the misfortunes of the State. I would like to ask hon. Members if they were proprietors of a particular institution which was showing possibilities of profit like this beam service, would they be inclined to sell it at the price at which they are now offering to sell the beam system. They would want a big percentage of profit and potentialities, and they would want security, because there is nothing that they like better than the old Jewish motto, "No advance without security."

So far as we are concerned, we stand for public ownership of public necessities as a matter of principle. If we are going to adopt the argument that private profit must be the centre of influence and industry, why should we run all our great public institutions, as we do now, without any element of profit being concerned? [An HON. MEMBER: "What about the hospitals?"] Hospitals do not matter; they give people the opportunity of getting O.B.E's and O.B.F's. People who subscribe a certain amount of money have their names inscribed upon tablets; the victims of their philanthropy sometimes get their names inscribed on tombstones. Here is a great public enterprise, inaugurated by the State. You cannot say that it was established by some private individual. It was begun by the State when there was no possibility of profit in the immediate future, and, immediately it becomes successful, or seemingly successful, all the jackals are after it. Now we are told that there has been a Conference of all the Governments. Who are the Governments? They are all composed of the same kind of people as this one, who believe in the right of every slave-driver to wallop his own nigger.

We want to know exactly what is meant by these international communications. We are told that in a time of war the Government will have the right to claim control. We do a lot of things in times of war that we should not do in peacetime, but, if it is right for us to control things in times of war, we claim that it is right for us to control things in peacetime. If the nation is good enough to control certain public services in times of war, we claim that the nation ought to control and dominate them in times of peace. We are told that the cables are going down and out, that the beam service is going absolutely to obliterate the cable system in the immediate future. If that be the case, is it right for us to assume, as we have been told, that the Government are contemplating giving an order for £12,000,000 worth of cables to Germany? [ Interruption. ] It is all in the same gang; they are all there. I want to ask again, because we shall not have another chance of raising it till November, is it true that the Postmaster-General's Department is now considering whether a contract for £12,000,000 worth of cables shall be given to Germany? "Buy British Goods!" I ask the right hon. Gentleman now, is it true—because the information has been given to those of us who are trade unionists and who have members engaged in the cable manufacturing industry in this country—that this contract is going to be given to a German firm, or is it going to be given to a British firm?

In the first place, that appears to have nothing to do with the question that we are discussing. In the second place, as the hon. Gentleman states it, it is not true. In the third place, I would refer him to the Report of the Estimates Committee of this House.

That is a get-out. The first reply is that it has nothing to do with this subject. The second is that the right hon. Gentleman does not know. [HON. MEMBERS "No; that it is not true."] I am asking him now if it is true that his Department have under consideration the question whether this contract for £12,000,000 worth of cables shall go to Germany or remain in this country?

The cable for use by the Post Office, referred to in the Report of the Estimates Committee, is not submarine cable, but ordinary land line cable, and has nothing to do with the question of Imperial cables.

I want a straightforward answer. This cable is to be used for Post Office purposes, and the Post Office is interested in this beam business. I want to know whether this contract is under the consideration of the Department, because we have information that this contract is about to be given out, probably while the House is not sitting, when we shall have no chance of raising it. I ask for a direct answer from the right hon. Gentleman. [ Interruption. ] I know it is very nice for hon. Members to go away on a three months' holiday, but this £12,000,000 contract, if given to a British firm, would employ British workmen. What is the good of advertising on the walls, "Buy British Goods," when you are sending orders over to Germany? I wonder who won the War? I am asking the question now, and I cannot get a straight answer. [ Interruption. ] Our party would not do that. If the Labour party, when they had in million and a quarter unemployed in the country, were prepared to send work abroad while people are starving at home, and at the same time to send thousands of our population abroad—to transport our own people and give the work to people in other countries—I would not vote for them.

Will the right hon. Gentleman say here and now whether what I have just stated is true? We have had information from our trade unions that that is what is happening, and the manufacturers have actually asked us to help them to approach the Government to protest against it. [ Interruption. ] You would not smile if you were out of work on 15s. a week. So far as this business is concerned, it is all private enterprise all the time—keep people down; get things cheaper; it does not matter what happens so long as we are holding our own. I say in all sincerity that, if the Government are going to do this kind of thing, they are insulting the workers of this country, and are playing a very bad part as regards trying to bring about that better understanding between Labour and Capital about which they are always talking.

I beg to ask leave to withdraw the Motion.

Motion, by leave, withdrawn.

Consolidated Fund (Appropriation) Bill

Industrial Transference Board

Order for Second Reading read.

Motion made, and Question proposed, "That the Bill be now read a Second time."

I think I need make no apology for asking the House to give its attention to a matter which I believe will loom far larger in the public mind in the long run than the subject to which we have given four hours' Debate this afternoon. I am going to ask the House to consider for a few minutes the Report of the Industrial Transference Board from the point of view of Imperial settlement and migration. We have had hardly any opportunity during the present Session of discussing this matter of supreme importance. Indeed, we unofficial Members on the Government side of the House have very few opportunities of raising any question in which we happen to be interested. I have more than once drawn attention in the House to the anomalous state of affairs which condemns two-thirds of the House practically to silence on matters in which they are supremely interested. I believe that some negotiations have taken place during the present Session through the "usual channels," and I should very much like to know whether those negotiations have led to any direct result. I want, however, to turn at once to the question of Empire settlement and migration.

Quite early in the Session, my hon. Friend the Member for Windsor (Mr. Somerville), by the luck of the ballot, had the opportunity of introducing a Bill—for discussing which, of course, this is not the opportunity—dealing with the question of the amendment of the Empire Settlement Act, 1922; but, despite my hon. Friend's good fortune in the ballot, his Bill has never been heard of since it was read a Second time, I think quite early in February. I understand that His Majesty's Government were very anxious that, before proceeding further with that Bill, we should await the report of the Industrial Transference Board. We did await that Report, with, from our point of view, lamentable results; and it is to the Report of that Board that I am going to confine the few observations that I want to present to the House to-night. On page 35 of the Report, in paragraph 86, these words occur:

8.0 p.m.

On a point of Order. I beg to call your attention, Mr. Speaker, to the fact that there are not 40 Members present. As a further point of Order, I should like to ask if the hon. Member is moving the rejection of the Appropriation Bill.

Those points must be dealt with one at a time.

Notice taken that 40 Members were not present; House counted, and 40 Members being present—

The second point of order is whether the hon. Gentleman is moving the rejection of the Bill.

The hon. Member must not appeal to me on that point. He must ask the hon. Member for York (Sir J. Marriott).

When the hon. Member thought fit, after his party had occupied for four hours the time of the House, to interrupt the Debate, I was trying to make it clear that the problem I am asking the House to consider is one of mutual interest to the homeland and to the Dominions. The last thing in the world I would desire to do is to draw out the balance of those interests. Here on the one side we have an industrial population probably 1,000,000 in excess of those for whom we can find profitable employment. The Report to which I have alluded puts the definite surplus of labour in the heavy industries alone at 200,000, and that constitutes a tragic problem necessitating the urgent and sympathetic attention of the whole country. These 200,000 are only a fraction, perhaps a fifth, perhaps a sixth, of the whole. On the other side you have Canada, with an area larger than the United States and a population not much in excess of that of London, and Australia, with an area almost as large as that of Canada and, as regards population, empty as a drum.

I remember an utterance, when he was leaving Australia, by the late Lord Northcliffe. I did not always find myself in agreement with Lord Northcliffe, but on this point I think he spoke words which deserve to be remembered. He was asked for his considered opinion of the future fate of Australia, and he uttered this grave warning. He declared himself to be profoundly impressed by Australia's magnitude and profuse wealth, its emptiness, and its defencelessness. He had met scarcely a score of men and women in Australia with any sense of the danger in which their country stood. He was staggered by the indifference of the Australian people to the vital question of immigration. I was reading not long ago a book from an entirely different point of view by one who occupies a great place in the missionary field, Mr. Basil Mathews, "The Clash of Colour," in which he drew, in terms not very different from those employed by Lord Northcliffe, a similar picture of the danger in which the Australian Colonies lie. It is not only men of our own blood; it is not only Englishmen who perceive the seriousness of the situation. Perhaps I might quote a few words from the "Vossische Zeitung," of Berlin, which lately referred to the comparatively unoccupied land of Canada, Australia, and other parts of the British Empire, and pointed out—the words are rather significant—Europe's right to the use and development of these empty but fertile and healthy regions of the British Empire. "What right," asks this Berlin paper, "has Great Britain to keep her Dominions empty?" The proposal was made that there should be some arrangement by which the League of Nations should take charge of the task of settling the vacant spaces of the British Empire.

That, at any rate, shows that this matter is attracting attention, and not only among people of her own stock and blood. But I really do not need to elaborate the particular features of the situation, the general outlines of which are only too painfully familiar to every Member of the House: On the one side a small island, densely populated and quite unable, thanks to a century of industrialisation and urbanisation, to feed more than a fraction of its 43,000,000 people, on the other side vast stretches of land very thinly populated, largely occupied in the production of those primary products of which we stand so urgently in need.

I want to come to the practical question that confronts us. I want to ask what has been done, what is being done, and what is proposed to be done to redress the balance which everyone deplores. Down to the outbreak of the War, migration to the Dominions was proceeding very satisfactorily, with practically no assistance from the Government. For the three years previous to the War Canada was taking from this country, in 1911, 123,000 people, in 1912, 138,000 and in 1913, 150,500. Immediately after the War there came a serious but, it was hoped, only a temporary decline in migration. It continued so long that in 1922 the Secretary of State was mainly responsible in piloting through this House the Empire Settlement Act. What has been the result of an Act which was brought forward to stimulate migration? In the last year before the passing of the Act, 74,262 people proceeded from this country to Canada. In 1925 the number dropped to 35,000, in 1926 it was only 43,000, and in 1927 it was just under 53,000—an improvement, but a very slow one. The figures for Australia tell very much the same sort of story. Under these circumstances, can we be surprised at the conclusion come to by the Transference Board? They say: that the chief reason is the attitude of hesitation, amounting in practice to opposition, which is adopted overseas.

I must not claim the attention of the House much longer, because I know that many other hon. Members want to address the House on this subject. I can only plead in excuse that this is a matter in which, for more time than I care to remember, I have been deeply interested. It was this question more than any other which first drew me into political life more than 40 years ago. To-day I find myself profoundly perturbed by the position in which the matter stands. I hope that my right hon. Friend when he comes to reply will treat the House, yes, and will treat the Empire, with frankness on this question, and will tell us from his unique and freshly gathered experience the real reason why this Act has broken down. Is it due to defects of machinery or is it due to causes larger and more serious and more obstinate? I remember that my right hon. Friend the Member for Hillhead (Sir R. Horne), speaking not very long ago in his constituency, said that he had found in Australia and New Zealand, which he had lately visited, a problem more refractory than he had anticipated. Is that also the experience of my right hon. Friend the Secretary of State? Did he find the problem much more refractory than he anticipated? If so, has he been able to suggest or devise a solution? I know perfectly well, and no one knows better, that in this matter we have to tread delicately and speak softly, but I sometimes wonder whether our tread has not been too delicate and our speech rather too soft. If this were merely a United Kingdom question, I agree that we could hardly speak too softly. But it is the whole point of the argument which I am trying to put to the House that if we in the United Kingdom have a vital interest in this matter, so also have the great self-governing Dominions. It is urgent for us; it is urgent for them. We have too many people; they have too few. We must sell our manufactures to ensure the subsistence of our people; they must dispose of their primary products, if they can, in the best and freest market in the world, that which we offer. I earnestly hope that my right hon. Friend will realise—I am sure he does—the deep sense of anxiety and perturbation which prevails, I believe, in ail quarters of the House and in all parts of the Empire, and that he will be able to say and to do something to dispel the present feeling and to relieve our anxiety.

We often hear criticisms of the Empire Settlement Act and wonder why it has not brought greater results. I often think that there is considerable confusion of thought about the Act. First of all, it must be remembered that it only deals with State-aided migration, and State-aided migration schemes which are approved and in the cost of which the Dominion Governments concerned have to participate in the proportion of fifty-fifty. When we consider these schemes, I do not think that we look at them from the point of view of what is politically possible in the Dominions, and what are the difficulties in the way of the Dominions of sometimes falling in with these schemes, much as they might like to do so. I would like to put to the House one or two difficulties which are often apparent in Canada when a scheme is proposed with regard to State-aided migration that people might not naturally understand here. If Canada is asked to participate in paying half the cost of State-aided migration of British migrants, very often, much as the Government would like to do it, they have to consider what are the consequences which might follow for the Canadian Government. It might put them in a difficult position. Much as they might like to help, they might be accused by, perhaps, people residing in the constituencies in the rural areas of Quebec which are often very much overcrowded. They might say to the Federal Government, "If you are prepared to contribute a very large sum in order to provide ready-made farms and assisted passages for migrants from Great Britain, what are you going to do for us? Are you going to give us equal opportunities?" This sort of thing might involve them in very great expenditure which they would not be able to meet. Again, they might easily be criticised by trade union officials in Canada who might say, "You are going to bring these people out. They may not be suitable on the farms, and the result may be that they may drift back into the towns." I do not say that this is a good argument, but it is quite a reasonable argument, and one which some people might use. They might say, "We have periodical unemployment in our industries here, and what is going to be the result if people who are no good on the land drift into the towns? It will probably mean a lower standard of living." These are arguments—I do not say that I am backing them up one way or another—which every man and every Government must consider when undertaking to contribute funds towards this purpose.

One of the great difficulties that we have in arranging for schemes of migration in which the Dominions are going to participate in the cost, is that we have no common ground on which we can get together and talk these things over. In this House when various schemes affecting various parts of the country are brought forward, we have in all parts of the House advocates who advance their point of view very much from the local standpoint, and some workable means is usually found of achieving, at any rate to some extent, the object in view. But when you have autonomous Governments in the various Dominions we have to be careful, in their relations with this country and in this country's relations with them, that we do not tread on each other's toes. Sometimes I think that a little plain speaking would not do us any harm. The criticism of one part of the self-governing Empire by another part of the self-governing Empire does not, I think, do any harm. It excites interest. If we could only have a little more of it, I think that it would be a very good thing and that we should accomplish more. We, oddly enough, do not take interest in things unless there is a certain amount of confidence. If the ties between this country and the Dominions are so weak that we cannot have a little friendly criticism of each other, it is a very poor business. Personally, I think we could stand a little more criticism. When I was in Australia two years ago there were certain criticisms in the financial papers in this country of the state of finance in Australia, and certain Australians whom I met were very indignant about it. What was the immediate result? The sane heads, the people who really thought, got together, and immediately began to put their financial house in order, where it was wrong. If we could be content not to be quite so mealy-mouthed with each other and we could take a little friendly criticism, we should get on very much faster.

In regard to migration, so far as Canada is concerned I probably know as much as any man in this House. My view is that we could do a great deal more with migration there, but it would be much easier to co-operate with the big transportation enterprises than with the Government, because when the transportation enterprises start a policy in regard to migration and land settlement it has the great merit always of continuity. The Government has to pay some attention to the electorate, whether the electorate be right or wrong, but the railway enterprises can deal with a policy of settlement and carry it out from year to year, develop it where necessary and speed it up. Take the history of the Canadian Pacific Railway. That company has done as much for migration as the Dominion Government, because the company has been able to start out on a policy and to follow it up year after year. The Hudson Bay Company has also helped a great deal, and there have been great schemes suggested by them. If we could get away, to a certain extent, from the fifty-fifty principle, if necessary, and co-operate with those people who are not merely interested in getting people out there for what they can make out of getting them there, we should make greater progress, because they realise that the prosperity of the transportation enterprises and the prosperity of the whole country depends upon population.

I have often heard people say that the Canadian Pacific Railway, or the Grand Trunk Railway, or the steamship lines merely want to take people out to Canada for the fares which they can get for taking them there. Of the transportation companies in Canada, that is not true. While it is true that every department of a railway is supposed to pay its way, their main interest is to get people to the country who can produce freights. One half the budget of every family settled on the land in Western Canada really represents freight revenue for the railways. I am quoting from memory, but I think that in connection with a family which has a budget of 3,000 dollars a year, 1,500 dollars in one way or another represent freight revenue to the big transportation enterprises. That money does not stay there, but it passes from the railway companies to the whole population of the country. I would suggest to the Secretary of State that while it is often politically difficult for the Government to co-operate to the full extent that they would wish with the Government in this country, his department might explore every avenue with a view to co-operating with the big transportation enterprises, who have patriotic sound men in charge whose one wish is to see their country develop and the prosperity of the country increased by that development.

The reaction of the excitement of the wireless Debate and the dinner hour have emptied the House, but the hon. Member for York (Sir J. Marriott) is to be congratulated on calling attention to a subject which is even more vital to the Empire than the question of wireless, important as that question is. The Government are to be congratulated on the efforts they are making in regard to harvesters, and the Lovat scheme. I hope that when my hon. Friend the Member for York reaches Canada, as he presently will, as a member of the Empire Parliamentary Delegation, he will find that the movement in regard to the harvesters is even more successful than the movement in 1923. I followed that movement pretty closely. I happened to go out with 700 of the harvesters, and we went right across the Continent. Some of them suffered a little hardship. They were a very fine lot of young men, and a great many of them went out for the adventure. When they came back, some 30 of them were disgruntled, although some of them admitted they had gone out for the adventure. The net result was that the large majority of those who went out obtained permanent employment in Canada. We hope that even a better result will be obtained this year.

In regard to the Lovat scheme to settle 21,000 people in Canada, so far as I can judge it the scheme is drawn up on right lines. It holds out the hope to the men that with their families they may settle permanently on the land. A provision in the scheme is to provide maintenance allowance for the families of the men undergoing training. I would suggest to my right hon. Friend that the wives of the men should be trained at the same time. At Chiselton we have three farms capable of dealing with 1,800 men, and at the head we have a genius in organisation training. I have seen him at work. There are about 400 men being trained, and he told me that he could deal with 1,800. One of the three farms might be set aside for training the wives, along with the men. I have seen families under the 3,000 families scheme where the wife would have benefited enormously and the scheme would have been more successful if she had received some elementary training before she went out. There might be instruction in baking, elementary domestic duties, and so on. Many of the women went out quite ignorant in regard to these matters. It would be very useful to the schemes if the young wives could be trained as well as the husbands. The Report of the Industrial Transference Board is a courageous, outspoken and useful Report. It says: tent at present, there are signs that the effect is becoming greater. It is a significant fact that more than 60 per cent. of the applicants for assisted passages inquire as to the existence of social insurance in the Dominions. The solvency of the Unemployment Benefit Fund is important, but the development of the Empire is vital, and I should like to see, at any rate, a proportion of the contributions to the Unemployment Fund of men who desire to migrate to the Dominions given to them in order to help them to migrate. I believe it would pay the country and themselves over and over again.

There is one provision in the Empire Settlement Amendment Bill, which was introduced early in the year, to which I attach the greatest importance, and that is the establishment of a real Empire Settlement Board, and I would take advantage of the irresponsibility of a back bencher to suggest that one of the best boards that could be formed would be an Industrial Transference Board, with Lord Lovat as Chairman, working under the direction of the Secretary of State, than whom no man has done more for the Empire. They should be given wide powers with instructions to get on with the Empire job. I should also like to see an intensive propaganda, not so much here, where we have thousands more applicants for assisted pasasges than are accepted by the Dominions, but in the Dominions themselves; propaganda in Australia and throughout the Dominions to make them realise, as they do not realise, how dependent they are on the Empire and on the British Navy. How long would Australia remain white if it were not for the British Navy? When one hears trade unions in Australia passing resolutions deprecating migration, talking about the standard of living and about a white Australia, one pities them.

How long would they be able to pass even those resolutions if it were not for the protection of the British Navy? The Government of Australia realises it and makes a substantial contribution, but the State Governments do not realise it to the same extent. Let me add this in conclusion. Hon. Members have alluded to the fear which exists in some quarters that if we state obvious facts the Dominions may be offended. I do not think the Dominions are built that way. What is necessary in this matter is the utmost frankness and the facing of facts. That is the spirit to which they will respond. Let me quote a few more lines.

I do not wish to keep the House at any great length because we are already behind our time programme, but there is one aspect of this question of Empire settlement of which we must not lose sight. I am rather afraid, owing to the fact that the Report of the Re-Settlement Board is so closely associated in people's mind with the unemployment problem in this country, and owing to the very prominent place which migration is given in that Report, that there are people not only in this country but overseas who may think that we are going back to the old point of view, that migration is merely a question of dumping our own unemployed or unemployable overseas. I think we should make it perfectly plain that this is not the point of view at all. It is an Imperial question much wider than anything of that sort. It is a-question which has given many of us very serious thought during the last three or four years, and I entirely associate myself with what was said by the hon. Member for York (Sir J. Marriott) when he said that we are disappointed with the rate of migration; and I am filled with greater alarm when I read the figures of British and foreign emigrants, particularly into Canada. I do not want to quote many figures but let me quote the figures for the last three years; they are extraordinarily instructive. In 1925, something like 35,000 British people migrated to Canada, and the total foreign emigration to Canada was 49,500. In 1926 British emigrants were roughly 49,000; but the foreign emigrants had gone up to 87,000. In 1927, British emigrants were 53,000, but the foreign emigrants, and in foreign I include the United States, had risen to nearly 106,000. That is to say, that in the year 1927 there were exactly twice as many foreign emigrants into Canada as there were British, and it shows that a very serious situation is coming about in Canada.

One of the ways in which the Dominions help to solve our problems in this country is the fact that in the past they have been the best purchasers of British goods, and they were the best purchasers largely because they were British. If we are going to allow, perhaps I ought not to say allow, but if we are going to sit by and watch our great Dominions become foreign we are going to lose an advantage which we at present possess. If we look ahead to the future of the Empire, it is of the first importance that we should maintain the British stock predominant in all parts of the Empire. Therefore, I view these figures with considerable alarm. The hon. Member for Dartford (Lieut.-Colonel McDonnell) referred to the Canadian Pacific Railway. May I call the attention of the House to a remarkable interview which was given by Mr. Beatty and published in the "Times" on 9th July. He referred to the difficulty of getting an agricultural type of migrant in this country to go to Canada, and he said: member the difficulties of the Canadian Government. Canada may say, "We are getting people from Great Britain and we have to share the expense of bringing them out and we propose to take people from your industrial areas who will not make as suitable emigrants as other people." We do not believe that is true. I hold that people from our industrial areas, with a little training, will make just as good colonists on the land in Canada as will people from any part of the world. At the same time there is that feeling in Canada and we have to acknowledge it.

I urge the Government not to tie themselves up in the matter, particularly with regard to training. Let us be generous in our expenditure. Let us see whether we cannot do something to capitalise the unemployment fund for the young people, and use it to give them a chance of settling in the Dominions overseas. I would go further and would urge the Government perhaps even to buy land and settle the people in Canada. Canada would benefit, because it would get the very best population, a British population, that the world can produce; and we should benefit because we should be opening up a wider market. At the same time we would overcome some of those difficulties with which Canada is faced, because if we were putting people there on our own land we should be in a position of bearing the baby and thereby overcoming some of the difficulties of migration. I hope that the Government will be able to give some considerations to these points.

I do not think I need detain the House at any great length, but I should like, at the beginning, to express my whole-hearted agreement with the opening sentences of the speech which has just ben delivered by my hon. Friend. It is essential, in dealing with this whole matter of migration, to regard it as a problem in Imperial co-operation, in building up the strength and prosperity of every part of the Empire, and not to regard it as a device by which we can get rid of our unemployed or unemployables. Our unemployment problem is our own problem, which we have to deal with in our own way. But, while the development of migration can undoubtedly indirectly contribute to it, we shall never build migration on sound lines unless we keep in mind the only condition on which we should ever encourage a man or woman to leave these shores, and that is the condition that they are fit to make a success on the other side and that they are going to make a success.

I quite share the disappointment expressed by my hon. Friend and by previous speakers at the fact that the actual result of migration, whether under the Empire Settlement Act or alongside it in the shape of unassisted migration, during the last few years has not been as great as some of us hoped that it would be a few years ago. I must, however, entirely demur to the conclusion of my hon. Friend the Member for York (Sir J. Marriott), when he says that the Act has been a grievous disappointment and has broken down. He based his conclusion very largely on comparison of the numbers assisted under the Act with the numbers who went unassisted during the three years immediately preceding the Great War. Those were the years of a great trade and land boom in Canada. Three great railways were being pushed across Canada, with their main lines and branches and the construction of thousands of miles of railway was taking place. Millions of acres of homesteads in the vicinity of the railways were being offered free, and there was a great flow of migration which, even apart from the War, would have come to a very sudden end. It is as well to remember that those were exceptional years.

The total average outflow to all countries overseas in the first decade of this century, from 1901 to 1911, was 76,000, of whom rather less than half went to the British Empire. During the last two years, to the British Empire alone, some 170,000 migrants have gone, and under the Empire Settlement Act in the last six years 277,000 persons have gone overseas, of whom the great majority would not have been able to go but for the Act; and if finance has to enter into our considerations at all, they went, thanks to the co-operation of the Dominion Governments, at an average cost of under £15 per head to this country. I should think, looking upon them as purchasers alone, that that was a very good investment for this country. I wish undoubtedly that the numbers had been larger.

My hon. Friend asked me to give him frankly from what I know at this end and from what I have seen at the Dominion end, my reasons for the fact that the flow not has been larger. The flow has been limited for precisely the same reason that made the flow so large in the years immediately before the War —the economic situation. There has not been in any of the Dominions since the War a development in any way parallel to the development that took place in Canada in the years before the War. Canada for some years after the War was over-supplied with railways, and there was practically no railway construction. She was in a sense almost over-supplied with population, and there was a heavy drift from Canada into the United States. Under these conditions it is a remarkable fact that you should have got co-operation on the part of a Government which, before the War, never cooperated in contributing to the cost of migration, even to the limited extent to which that co-operation has taken place.

We have to remember that the home market of the Dominions is a limited one, and that except in times of great expansion there is only a limited number of places for industrial migrants. On the other hand there is always scope for agricultural workers, and it is quite natural that the Dominions have concentrated on giving their assistance in the main to agricultural migrants and have encouraged them to come in unrestricted from all sources if they pay their own passages, the belief being that it is only by building up an agricultural population that you will create conditions under which an industrial population can grow up and industrial migrants freely enter. That is the difficulty from the Dominion end.

In order to produce the agricultural migrants that the Dominions require we should have needed a much larger agricultural population. In this respect we are suffering from the mistakes of past generations, which have allowed British agriculture to go down as it has gone down. But we are also confronted by the fact that ocean passages are now far more costly than they were before the War. A passage across to Canada is £18 15s. compared with £5 before the War, and there are fewer people at this moment who have £5 to spare than had £18 in the more prosperous days before the War. Therefore, the gap in the way of migration has, in some way, corresponded not only with a comparatively quiet time in the Dominions but also with our own depression. The problem is how we are to help to bridge that gap. The Empire Settlement Act has in a very substantial, though not in as large a measure as some of us might desire, helped to bridge that gap, and the question which those of us who are concerned with the working of that Act have been considering for some considerable time past is in what way to supplement and improve the working of the Act in order further to bridge the gap even under present conditions. One of the first measures and it was one contemplated and embodied in the Bill of my hon. Friend the Member for Windsor (Mr. Somerville) is to take outside of the "50–50" provision embodied in the Empire Settlement Act, the business of training people on this side so as to fit them to come within the provisions of the Act and within the regulations of the overseas Government, and to get the advantage of cheap assisted passages.

I need not elaborate the details, but, arising out of the Report of the Oversea Settlement Committee—a much more constructive document than my hon. Friend the Member for York has given it credit for being—as well as from the recommendations of the Industrial Transference Board, we are now proposing to enlarge substantially, at the cost of the British Government, these training facilities. We hope also by a larger contribution than the "50–50" contribution to encourage voluntary societies and municipal authorities to co-operate on a much larger scale than hitherto in training and more particularly in the training of youths and in some cases of families. We hope in that way to bring about from the present training which I think deals with 2,000 or so a year an increase which will enable an additional 2,500 boys, 7,000 single men, 2,500 families and 2,000 single women to be trained annually and trained on such lines as will render them certain of acceptance by the Dominions overseas. That I think registers a substantial advance, but an advance not concerned, as I have said, with the immediate problem of our unemployed, which has been in the minds of the Oversea Settlement Com- mittee for some considerable time past. I want to add that we could not act until we had gathered sufficient experience to show that the kind of training which we were experimentally giving here was the training that suited the conditions of the Dominions.

9.0 p.m.

We have now the assurance of all the Dominions that this kind of training produces the type of men and youths whom they are prepared to take. We are also meeting the. hon. Member for Windsor on a very important point, namely, that of family allowances for married men. Under the provisions of the Unemployment Insurance Act they are not able to avail themselves of this. I am also most willing to consider, if it is at all practicable, his alternative suggestion that instead of their receiving allowances at their own homes, accommodation should be provided for wives to go with their husbands and to get some kind of training which will make them more fitted for settlement. We can convert miners and other industrialists into good farmers. Some of the most successful men I have met in the different parts of the Empire are men who never saw a green field before leaving this country. But we must give them something more than the prospect of working as farm labourers for ever. We must give them something in the nature of a career. Lord Lovat is going out instructed to see what arrangements he can make with the oversea Governments, and particularly with the Government of Canada, in the first instance, in regard to the better provision of rural housing. The lack of decent cottage accommodation on the farms often drives a man and his wife back into the cities when they otherwise would be glad to remain on the land.

There is also under consideration a provision to enable us, in conjunction with the oversea Governments, to make advances to men who have saved something themselves, so that, instead of having to wait for years and years before they can dream of acquiring farms of their own, they can within a few years, if they have saved £100 or £200 of their own, reckon on a corresponding amount of further assistance from the British Government and the oversea Govern- ment under the Empire Settlement Act. We shall continue to do everything we can to extend further such land settlement schemes as will create a background of opportunity for every settler who goes out. I by no means reject the suggestion made just now that we should consider the acquisition somewhere or other—either co-operating with the Governments or with private corporations—of interests in a large area of land. We hope, as a result of the discussions between the four business men who are going out to Australia and the Australian Development Commission, to get schemes under the Loan Agreement, produced more rapidly than in the past.

We are trying to create a ladder from the industrial worker who wishes to go overseas, but has no agricultural qualifications, to the successful settled farmer on the other side of the water. But we also recognise that one of the great barriers to migration lies in the heavy cost of passages for the ordinary migrant who goes on his own, unassisted, and the Government are determined to explore with the shipping companies the possibility of finding some way in which the ordinary passage can be substantially reduced, not to the assisted special migrant, but to the ordinary man who wants to get a ticket and to go overseas without any unnecessary Government formalities or any sense of dependence on public assistance. That is the conclusion, not only of the Industrial Transference Board and the Oversea Settlement Committee, but also of the special committee of the Canadian Parliament which has been studying the problem of migration in recent months. We hope to see whether, in the language of my hon. Friend the Member for Windsor, we cannot ease the flow of ordinary unassisted migrants and narrow the gap which the increased cost of passages has made nearly four times as wide to-day as it was before.

There is only one other matter which was touched upon by the hon. and gallant Member for Dartford (Lieut.-Colonel McDonnell) and which has been brought into prominence by the report of the Industrial Transference Board. That is the effect of regulation and restriction upon the psychology of the would-be migrant. It is obvious that there must be some regulation and, in some respects, the oversea Governments must protect themselves against undesirable and physically unfit migrants. If they spend money on giving assistance, they naturally wish to ensure that the migrants are of the classes who will strengthen their own community in which they will settle. Therefore, there must be always, especially in connection with assisted passages, some element of inquiry, or regulation, and of procedure, and that business of procedure and of regulation must naturally remain within the ultimate control of the Governments who are going to receive the migrants and who will suffer if the wrong type of migrants is sent. Therefore, we have to realise the fact that a certain amount of regulation is always necessary; but, of course, it is always possible that regulations may be introduced, each with justification at the time of its introduction, which yet tend cumulatively to have a restrictive effect that was never intended. All the procedure decided upon across the sea may not be wholly adapted to the conditions or psychology on this side, and it is right and proper that we should, in all frankness, put our difficulties in this respect before the Dominion Governments concerned and see where matters can be simplified, where their own intention to promote the flow of British migrants to the Dominions can be assisted. I think I need not say anything further on this subject, except just this, that this business of a better distribution of the population within the Empire can only succeed if we conceive of it as a part, though a very vital part, of the whole business of closer economic co-operation, over the economic field and over every other field of national life.

In discussing this question, it is very necessary for us to remember that the character of the migration movement has changed considerably since the War. Emigration used to be a matter for the individual; it is now the concern of Governments. When emigration is directed by the conscious policy of States, it is clear that obvious difficulties may arise and that the reasons for international friction may be increased. Happily, emigration from Great Britain and the Colonies is not hampered by those conflicting policies which hinder the work and movement elsewhere. We have not, for instance, to guard the sense of nationality as the Italian Government are doing at the present time with respect to their emigrants in France. Our Colonies do not hamper us with regulations like the quota laws of the United States, which have caused such heart-burning in the countries of Central Europe, and especially in Japan. Therefore, the problem for us is simplified, and it resolves itself more or less into the duty to ascertain that British subjects have an assurance of work in one of our Dominions, and then to arrange that they and their families shall be enabled to reach that employment.

The hon. Member for York (Sir J. Marriott) stated that there was only an indirect connection between this subject and unemployment. That indirect connection is, however, interesting and is deserving of consideration. The right hon. Member for Hillhead (Sir R. Horne), in a speech which he delivered just a year ago, argued that the vast army of unemployed which we have here is due in the main to a surplus which remains with us because our people have not been emigrating at the pre-War rate; and he quoted figures showing that in 1926 British emigration was less by 100,000 persons than in 1913. It is certain that British emigration is not as good as it could be or as I believe it would be if the possibilities and the prospects of overseas settlement were fully appreciated. In spite of philanthropic effort and State schemes, we have not directed sufficient attention to the resources which are already at hand in our Colonies. I am afraid that the interest of the British people and of British finance has been apathetic towards Colonial development. Can anyone consider that Canada, for instance, has received the attention and the assistance that she merits from the Mother Country? I think not, if one remember the words which Mr. Brownlee, the Prime Minister of Alberta, spoke when he visited this country last year. He stated that in his Province alone the natural resources were so great that they could not be exhausted, and he deplored the fact that they had not the people nor the capital to develop those resources. He concluded with words like these: "I am returning home frankly of the opinion that the British authorities are not much interested, but meanwhile Americans are keenly watching and waiting for the opportunity to step in." Canada is a land of promise and opportunity second to none that exists, and it is of supreme importance and interest to us that such a Dominion shall advance in power and in greatness and that all our Dominions should retain their fundamentally British character.

With most other countries this question of emigration is viewed only as an alleviation of their burdens. With us, the problem has other and larger considerations. We look upon migration as a great factor in solving the problem which the Colonies have regarding population. We look upon it as a means of stimulating development and production, and thereby of enlarging our store of food and raw materials and increasing also the exchange of commodities between the Mother Country and other parts of the world. Our Colonies have all the elements of a gigantic destiny. It is there that we see the fittest areas for increased trade and renewed employment. There we find the promise for so many of our people of a happy, a healthy and a prosperous future existence. I believe that if our people can be persuaded to go out and settle overseas, they will find there an atmosphere that is truly British. They will work among people who will welcome them, and who desire to see the newcomer make good; they will be associated with men and women who are akin to them, and who, though they may never have touched these shores, look upon this country as home, the home of their language, of their liberties, of their race. If men will go out, it will undoubtedly be a loss to this country, because we can ill spare the type of men which our emigration schemes demand; but of this we are convinced, that their going will be an advantage to themselves, it will be a gain to the Colonies, and not least of all the benefits, it will strengthen the Empire. By spreading throughout our Dominions in the far parts of the globe British brains, hearts, character and energy, we shall at the same time be nourishing that grand Imperial oak "whose broad roots coil beneath the seas, whose branches sweep the world."

Government Departments (Ex-Service Men)

I have listened with interest to the speech which has fallen from the right hon. Gentleman the Secretary of State for the Dominions with regard to unemployment. It takes me back 14 years, when we were threatened with the greatest war the world had ever known, and I can well remember the hundreds of thousands of men who rallied to the Flag, and were told that when they came back everything that was possible would be done for them. The right hon. Gentleman referred to what has been done in regard to the Empire. I wish to raise a question in regard to the men who served in the War, and who, unfortunately, find themselves now in the difficult position of wondering whether they will be retained in the posts which they hold in the Civil Service, or whether, on the other hand, the Government are going to say that the time has arrived when it has to be considered whether they can be retained or whether their places must be filled by new entrants. I desire to see the Civil Service maintained in its highest traditions, and I do not close my eyes to the fact that it may be necessary in certain circumstances to recruit a number of new entrants, but it should not be done to the detriment of the ex-service men who have served the Government well and faithfully for years, who, having served their time with the Colours, came back and looked for jobs and were placed in the Civil Service. Unfortunately, a large number of these men have for the last two or three years been handed their discharges, and they have had to look round to find work. In the third Lytton Report, paragraph 12, are the words: been fairly and squarely proved that these men cannot do their work, they should be retained. The Association of Ex-service Civil Servants has done a vast amount of good in looking after the interests of these men, and the Government should he grateful for the services that have been rendered by them; they have laid it down perfectly plainly that if in the files it is found that they have not carried out their duties, they do not ask for their retention.

Then we come to the question of the agreement that was entered into by my right hon. Friend the Minister of Agriculture, who was then the Financial Secretary to the Treasury. He did all that he possibly could at the time for the men who were serving. The result was that 8,000 of them passed the examination and were placed in the pensionable class of civil servants. Eight thousand of them were placed in another category, which was called the non-pensionable permanent Civil Service. Unfortunately, there were a certain number who were not taken on in that class. There were 5,000 for whom employment could not be found, or was not found permanently. I want to ask if the time has not arrived, considering the requirements of the State and of the Civil Service, and considering the acknowledgment of the Government that it is necessary to find new entrants, and the fact that there are many vacancies, for the Financial Secretary to the Treasury to take his courage in both hands, and see that with regard to the men who have carried on their work in a satisfactory manner for years past, they will not have to wonder whether next week or the week after their notices will be handed to them. The great majority of these men are married men, many of them have families, and the average age is 38 to 40.

We know that there is a vast amount of unemployment in this country, and it does not require very much consideration to see that when these men who have served in the Civil Service go, at the age of 38 and 40, to look round in commercial undertakings for employment and they are placed against men of 18 to 20 years of age, they have small chances of finding employment. The fact is that, having been in the Civil Service, they have not the knowledge that, with all deference to them, they are expected to have in commercial life. It is on behalf of these men that I am pleading to-night. I do not want to go into the question of the agreements entered into on behalf of the various Departments of the Government. I would, however, call my hon. Friend's attention to the Guinness agreement, in which agreement it was never contemplated that these men should be displaced by women, or new entrants, or anybody else. They have been able to carry on the duties of the Civil Service since 1918, and you will not tell me that the country is in such a condition to-day that these men cannot carry out their duties in the future as they have done in the past. I am sorry to say various Ministries have found it necessary to dispose of the services of a good many of these men.

Let me give one or two facts and figures with regard to these Departments. The Ministry of Labour, in November of last year, dismissed from the Claims and Records Department at Kew 122 ex-service temporaries because of what was said to be a lack of work; and yet, funnily enough, on 25th January, just two months afterwards, the Establishment Department in the same Ministry wrote to Mr. Blythman, who is the Secretary of the Staff side of the Whitley Council, and stated the necessity for recruiting further permanent staff to fill vacancies which now existed in the Departmental class and in the grades of clerical officers and writing assistants. The official side said in November that there was no room for these men and that they must be discharged—these men who were wanted during the War to maintain the prestige of our country—yet notwithstanding that intimation, new entrants were wanted. The vacancies to be filled were approximately 300 Departmental clerks, 250 clerical officers and writing assistants. Then followed an extraordinary statement that of these vacancies it was proposed to fill the posts of 50 clerical officers and 100 writing assistants by the recruitment of successful candidates in examinations. In the Departmental class they were to make available vacancies for 50 men and for 50 women who had passed through the examinations. That simply meant that they were offering 100 posts to those who had passed the examinations.

I should like to ask my hon. Friend how this attitude compares with the pledges given by the Government. When he replies, will he say how he can bring that into the Guinness agreement? I could give many cases, but I do not want to weary the House. But another instance relates to the Ministry of Pensions. In the Ministry of Pensions surely we should have expected a vast amount of sympathy for these men, but I find that at Acton there were 34 ex-service men who were getting, I think, £3 2s. 6d. and were getting it under an ex-service official receiving £281 a year and also under another permanent official receiving £285 a year. What happened? These men were dismissed and their places were taken by 38 women who were getting a slightly smaller salary of £3 0s. 8d. a week; but instead of this one ex-service man and one permanent official, a senior officer is placed over them with a salary of £500 a year and, in addition, there is a woman supervisor placed in the position of the ex-service man who was getting £281 a year. She gets £400 a year. It cannot be a question of economy, because there are 38 women instead of 34 men. I do not think it wants very careful arithmetic to know that it cannot be a question of economy.

Without in any way speaking detrimentally about the women, they work 3½ hours a week less than the men, and they get pensionable rights against the men previously serving who have been dismissed and have no pensionable rights. I do not want to go into the question of names, but I have gone very carefully into the matter, and I have sent to the hon. Member chapter and verse as to men displaced by women, and I have given the names of women placed in the positions vacated by the men. I do not know what is going to happen to these men. I do not know if my hon. Friend will say to-night: "I appreciate and recognise to the full, the attitude and assistance rendered by these men, and we are not going to have any lip service. We are going to do what we can and carry out our pledges." I hope my hon. Friend will say, "The Government have given this careful consideration. They are desirous of redeeming in every shape or form the pledges held out. They have given good service and carried out their duties and we are prepared to give to these men the non-pensionable permanent positions to enable them to say: 'As far as I am concerned for many a year I am sure of a living for my wife and children.' "Surely that is not too much to ask, because we know a large additional number of men will be required in the Ministry of Labour and Employment Exchanges throughout the country and in connection with the work of the Transference Board. There is a rumour going round that they are going to take new entrants for these positions. I hope my hon. Friend will contradict that rumour, because I say that here the Government have a favourable opportunity of utilising the services of these men, and I hope we shall be told that this will be done.

I started by saying that I was not averse to recognising the fact that the time may have come when a certain amount of new blood has to be brought into the Civil Service, but if my hon. Friend will say that during the next three years 75 per cent. of the vacancies shall be allotted to the "P" class men and to those men who are to-day what I may call on the fringe, that is, those who do not know from one week to another what is going to happen, that they shall be placed on the non-pensionable permanent staff, while reserving 25 per cent. of the vacancies in the established clerical classes for the new entrants, the difficulty will, in my opinion, be largely overcome. I am going to ask my hon. Friend this plain question with regard to the requirements of the Ministry of Labour and the Transference Board. Will he, here and now, undertake that these men shall be given the opportunity of filling those positions, and that new entrants shall not be taken for the work required? There are many more flagrant cases which I could bring forward, but I hope I have said enough to commend the case of these men to the careful consideration of my hon. Friend and to the sympathetic consideration of the House.

In view of the many speakers who are to follow and deal with other important subjects, I will confine my remarks to two sentences. First, I wish to congratulate my hon. and gallant Friend the Member for Dulwich (Sir F. Hall) upon the persistence with which he has pursued this very important question; and, secondly, I wish to ask the Financial Secretary to the Treasury to remember the history of his predecessors. I say this in a friendly spirit—that the House of Commons as whole is very much more concerned with what is going to happen to these ex-service civil servants than has yet been indicated by any vote in the Division Lobby. I am certain the House of Commons will be behind the Financial Secretary in giving a positive guarantee and assurance that none of these men will be turned out of their employment, even on the ground that the efficiency of the Civil Service demands it. I do not believe efficiency could suffer to such an extent as to make it necessary to put these men on the list of the unemployed, and I therefore appeal to the Government to reconsider the position in respect of these ex-service civil servants, and see to it that the anxiety which now lies like a load on their minds shall be lifted, so that they may go on with their Civil Service duties without the fear of having to face unemployment.

I wish to intervene for only a minute or two in order to help to drive home to the Financial Secretary to the Treasury the fact that many of us are getting extremely uneasy at the news which we are receiving from the Departments as to the treatment of these temporary ex-service civil servants. My hon. and gallant Friend the Member for Dulwich (Sir F. Hall) has covered the ground completely, and I do not wish to go further than he has gone, because in the short time at our disposal it is best to concentrate on one or two points only. I think we all remember the stress and strain under which the Lytton Committee was driven to make the Report which it did make, and I think we remember how during the last election this question came very prominently before the country and the undertakings that were given. My hon. and gallant Friend has already referred to the promise made by the present Minister of Agriculture, and we all remember that "Guinness Guarantee." Paragraph 7 of the agreement stated:

In November last, and perhaps earlier than that, it became known to this House that there was an intention to hold an open examination. Disquietude was shown in this House. On 27th July, 1927, the hon. Member for Tiverton (Lieut.-Colonel Acland-Troyte) asked the Financial Secretary to the Treasury In view of the pledges given in the past, I think the administration should be able to prove up to the hilt that they are standing by those pledges. I know the soft things that have been said. It may be said, "No we have not replaced an ex-service man by a new entrant. It is true we have cleared out a number of them and passed them on to other Departments, and that the places which they occupied have been filled, but then you see we have not discharged them." What seems to have happened is that those who held those secure positions seem to have been cleared out, and put into insecure positions and the new entrants are put into the secure positions. Then the work dies down and out they go. I am aware that strictly this is not a breach of the undertaking, but in fact it is something like Uriah the Hittite who was placed in the forefront of the battle. These men are being put into positions in which they are likely to be put out of work. My only object in intervening in this Debate is to let the administration know that many of us are watching with keen interest what is taking place, and we are extremely jealous about the honour of the administration. Any proposals dealing with this question should be watched with the utmost care to see that not only in fact, but in spirit, the administration does not break any undertakings which have been given and upon which we have all relied.

I think the hon. and gallant Member for Dulwich (Sir F. Hall) has made the point quite clear that we are not asking for any special consideration for the inefficient. I would remind the Financial Secretary, who is going to reply to this Debate, that the majority of these men have been in the service seven, eight or nine years, and therefore they must have already passed some test of efficiency. Efficiency itself was one of the conditions of promotion when these men were appointed. The hon. Member for Greenwich (Sir G. Hume) has referred to what undoubtedly is a grievance of some of the ex-service people employed in the Civil Service when he pointed out that too often they are transferred from positions in which they have become accustomed to the work, positions which they have been led to regard as being secure positions, and now they have been transferred to less secure positions where they cannot possibly attain the same degree of efficiency. I have had the experience, which is no doubt shared by many other Members of this House, of the same man writing to me and coming to see me again and again. I can quote cases where the same man has come five or six times asking me to use what influence I have with the Government or the Joint Substitution Board to get him a fresh position because he finds himself out of work.

May I point out to you, Mr. Speaker, that some of us have been sitting here for six hours trying to catch your eye? There are soma hon. Members who have not been here more than half an hour and yet they have been called upon to speak.

The hon. Member knows that different subjects interest different people, and the hon. Member for West Walthamstow (Mr. Crawfurd) has a perfect right to raise the question with which he is dealing.

I understood that the arrangement was to give two hours to the first subject, and four hours has actually been taken up with it. I do not see why we should not discuss fully the question I am raising, which interests every single Member of this House. I ask how is it possible for a man who is constantly transferred from one Department to another and back again to arrive at that state of efficiency which will enable his own Department to recommend him for absorption in the "P" class? When we talk about efficiency that very question is affected by what we are discussing, and how can we expect men who do not know from one week to another what is going to happen to become efficient? I have interviewed dozens of these men, and I find that it is not so much a question of competition between ex-service men and the new entrants, but what is important is that we should be told that the conditions of those who are now employed will be stabilised and made more permanent. It is only by this method that the efficiency of the service can be maintained.

Perhaps it will be convenient to the House if I now reply to the various questions which have been put to me on this subject. I feel sure that every Member in the House must have listened to this Debate, as I have, with the utmost sympathy. Indeed, as is known to many hon. Members, and especially to my hon. and gallant Friend the Member for Dulwich (Sir F. Hall) and the hon. Member for Leith (Mr. E. Brown) and the hon. Member for Edge Hill (Mr. Hayes) who have seen me in reference to it on one or two occasions, I have given a great deal of sympathetic thought to the matter. Consequently, if I could find a solution that would be satisfactory to everyone, no one would be more pleased than myself. This question of the employment of ex-service men in the Civil Service has been frequently discussed in this House. I welcome the opportunity which the present discussion provides of letting hon. Members know my feeling on the subject, and I have prepared a carefully thought-out statement which I should like to lay before them.

Ever since the War it has been the policy of successive Governments to give to ex-service men as much opportunity as has been in their power of obtaining employment in the Civil Service, and I do not think that the Government have anything to be ashamed of, but, rather, have every reason to be proud of the efforts that we have made on behalf of these men who have served us so well. I think the House will be interested to know that there are at the present moment 140,000 ex-service civil servants. That means that one out of every two persons in the civil service is an ex-service man, and that of the total male population in the Civil Service two-thirds are ex-service men. Further, these 140,000 ex-service men in the civil service include 45,000 disabled men. We have done the best that we could for them and we have done it willingly, wholeheartedly and sympathetically.

This evening the attention of the House has been chiefly directed to the question of the employment of ex-service men in a clerical capacity, and in that connection I should like to say that opportunities, not once, but repeatedly, have been given since the War to temporarily employed ex-service men to qualify for admission to the established clerical classes. The standard of qualification prescribed at these tests has been substantially lower than the standard which would have been expected of recruits in the ordinary open competition, and no fewer than 16,000 ex-service men have secured appointments in the Established Clerical Classes. The Government have done more than that. In 1925, an agreement was made which I will paraphrase. It was made with the Association of Ex-service Civil Servants, and it provided, not only for a further qualifying test for admission to the Established Clerical Classes, but for the appointment on a permanent unestablished footing of no fewer than 9,000 temporary ex-service men who failed to qualify by examination for admission to the established clerical Classes. These 9,000 constitute the so-called "P" Class.

The agreement goes further, and gives to Members of the "P" Class a continuing opportunity of promotion to the Established Clerical Classes, and, to temporary ex-service men who are still employed, a continuing opportunity of admission to the "P" Class. Although not many months have elapsed since the last of the successful candidates at the Southborough examination was assigned to the established clerical class, more than 400 promotions from the "P" Class to the Established Clerical Classes have already been authorised. I find that, as the result of these measures, there are now left in temporary employment only about 5,000 ex-service clerks. It is impossible, as I think the House will agree, for any Government to guarantee to retain all these men in employment irrespective of the work which may be available. Nevertheless, every effort is being made, and I will undertake to say that it shall continue to be made, to secure, if possible, continued employment in the Government service for these men. I will do my best to see that that is done. As and when it becomes necessary, owing to reduction of work, to discharge a temporary ex-service man from any Government Department, his name goes automatically on to the register of the Joint Substitution Board, and the duty of that Board is to find, wherever suitable employment can be found, temporary employment in the Government service for such men. I will undertake that that shall be conscientiously continued.

Will that promise also extend to ex-service civil servants who have been already discharged without anything against them?

10.0 p.m.

I should have to look into that point specially; I could not give an answer off-hand. At the present time, notwithstanding large reductions of work in various Departments, the Joint Substitution Board has been successful in finding employment—and I must say that I myself was surprised when I learned these figures—for all but the very small number of 200 ex-service temporary clerks. These 200 men are still on the books of the Joint Substitution Board, and every effort will be made to find suitable employment for them. With regard to the promise which has been referred to, that no efficient temporary ex-service clerk shall be dismissed to make room for any successful candidate in open competition, and also that the appointment of successful candidates so recruited by open competition shall not affect the special promotion of permanent non-pensionable clerks to the established clerical class, the Government are determined to give effect to that. With regard to the suggestion made by my hon. and gallant Friend the Member for Dulwich, that for three years 75 per cent. of the vacancies in the established clerical class should be reserved for ex-service men, I am bound to say that that would reduce the efficiency of the Civil Service.

The opinion that we hold is that it would be impossible to carry out what my hon. Friend wishes with proper regard to the efficiency of the Civil Service. The House, may, however, rest assured that every sympathy will be shown to these ex-service men, and that the admission by open competition of recruits to the established clerical classes will not in any way prejudice the claims of the "P" Class clerks to be promoted to those classes, nor will there be any disposition on the part of the Government to deny promotion to any "P" Class clerks who show themselves to be well qualified to perform the duties of the estabished clerical grade.

I am sure that my hon. Friend forgot the point about which I asked with regard to the policy of transferring unemployed labour. Will my hon. Friend give an undertaking that, instead of new entrants being used, the services of as many of these men as possible will be utilised? There are hundreds wanted now in the Ministry of Labour and various other Departments.

I cannot give a definite undertaking, but will promise that that point shall be sympathetically considered.

I only desire to say two sentences. In the first place, despite the hon. Gentleman's statement, an uneasiness still remains in our minds. In the second place, I hope that the hon. Gentleman will take the suggestion of the hon. and gallant Member for Dulwich (Sir F. Hall) with regard to the 75 per cent.—or, if he cannot give that percentage, at least some percentage—into much more grave consideration than, apparently, is being given to it in the Civil Service at the present moment.

I very much appreciate the speech of the Financial Secretary. I have a great number of these ex-Service civil servants in my constituency and, when the examination was announced last July, I was inundated with applications to know how far their positions were affected. Of course, I told them of the pledge given by the hon. Gentleman's predecessor last July, and I told them that I was sure they ought to be satisfied with that, but I am bound to say several of my constituents have received their notices and have been dismissed. The figures given by the hon. Gentleman were exceedingly interesting, but I have personal knowledge of a great many men who have received these notices which have been so profusely issued by many Departments. There are 100 ex-Service men discharged from the Central Index Committee, many of them with nine years' service and wives and children. There is a man aged 51 with a wife and four children, invalided out of the Army, nine years in the Civil Service. There is another aged 51 with a wife and three children, nine years in the Civil Service and five years' war service. These unfortunate men will, I am afraid, hardly appreciate the hon. Gentleman's reassuring words. The Ministry of Health have already given notice of dismissal to 120 ex-Service civil servants and the Records Section under the Widows and Old Age Pensions Act have dismissed 14 ex-Service temporary men and put women in their place. I have a long list and I could go on ad infinitum.

Another point to which I should like to call attention is the position of P class men, who have been given permanency but without any pensionable rights. They are 8,000 in number. I understand not more than about 450 have, up to date, obtained promotion. These men receive the miserable emolument of £3 3s. 11d., reducible as the cost of living goes down, so that probably in September they will be receiving the handsome remuneration of £3 2s. 6d. They have no salary increases and their position is one of miserable Government helots. They are not able even to qualify for a house on the London County Council outlying estates. I have a letter from one of them who applied to the Watling Estate. They told him that, as he had four children and he would require a four-roomed cottage and the rent would be 19s. a week, as his salary was only £3 3s. 11d. they did not see how he could afford it and they must refuse him as an occupant. These men should be placed in a better position. They have been serving in the Civil Service for eight or nine years. They have had no increases and they are entitled to no pension. The utmost they could get would be something under the Superannuation Act, which works out at a week's pay if they have served for 15 years. That is a miserable position for men who have served their country well, who are in the main over 40, with wives and families, and their position reflects no credit upon the Government service. I ask the hon. Gentleman to give sympathetic consideration to the present position of the men serving in the P Class.

Indian Affairs

In initiating a discussion upon Indian affairs I want to protest against a system which does not ensure adequate and timely discussion of Indian affairs and which relegates the affairs and the lives, so far as this House has any concern, of 318,000,000 people to an hour or two among the scraps at the end of the Session. I protest against the system. I do not blame the Financial Secretary. I blame no individual. I blame a system which enables the House three or four times to repeat discussions on details of the Budget, the Finance Bill, the Tote Bill, Church Bills and all sorts of Bills, and relegates the affairs of 318,000,000 people to a miserable hour or two after Ten o'clock at night at the fag end of a Session.

I want to direct attention to the Report and evidence of the Indian Agricultural Commission. I believe I am one of the very few Members who have read the ten or twelve ponderous tomes of evidence which have been issued. I find in some of these volumes matter of the most pregnant interest, not only to the peasantry in India but to the unemployed in this country, and it is to the connection between these two that I desire to devote a few words. May I begin by quoting an amazing resolution which is to be found in Volume 1, Part 1, of the evidence. It was passed at an All-India Conference of medical research workers in 1925. This is not a resolution passed by Swarajis or the All-India Trade Union Congress. It was proposed and seconded and passed by the chief medical officials in India. They say: sion by Lieut.-Colonel Gill, a Public Health Commissioner of the Government of India, in which he describes the misery resulting from the epidemics which periodically sweep over the starved population in India. It amounts to this, that after all these years, the real trouble in India is not political. The real disease in India is a stomach problem. It is a problem of hunger; a problem of insufficiency of food. It is a problem of not enough. This House ought to turn its attention more often than it does to the problem of how to deal with the poverty of the people of India, and see if we cannot, in raising the purchasing power of the people, do credit to ourselves in the eyes of the world, and incidentally—and that is what I am coming to—relieve to a very considerable extent the unemployment problem in this country. I wish to direct, in a word, the attention of the Under-Secretary of State to Volume 7 of the Evidence, in page 3, where Professor Mukhergee, of the Department of Economics at Luck-now University, describes in detail the absolute hereditary slavery still existing in large parts of rural India to-day. He says: implements, and by preventing his increased productivity from being stolen from him by increased rent. It is most remarkable that this elaborate Commission, with its 10 or 12 volumes of evidence, and with its Report, was strictly forbidden to discuss the question of rents. Anything else in agriculture they could discuss, but not rent; keep clear of the holy of holies: If this House were prepared, it could, and I will show how it could, increase the purchasing power of the ryot and prevent his increased purchasing power from being stolen in increased rent—by the moneylenders, in addition, but I have not time to deal with that—increase the demand for the products of British labour and affect very materially the unemployment problem in this country.

What is the position of these people in India? Evidence is tendered that they are barely scraping the surface of the soil, that motor ploughs can only be sold to the extent of 120,000 in 14 years as a result of the poverty of the ryot; he cannot buy. Evidence is tendered that co-operative production, bulk production of sugar-cane crushing machinery, automatic pumps for wells, etc., would reduce the price of these things by two-thirds. Evidence is tendered that the agricultural departments are already selling these things. They are already in the business. They know how to sell the things, if they could only get the implements in large quantities at a cheaper price, the cheaper price being one-third of what it is now. If these implements could be loaned out, free of interest, to the ryot, we could in one year, or at the most in two harvests, double, treble, and in some places quadruple the purchasing power of 318,000,000 of people. In this country we have unemployed engineers. We are paying them on the average £1 a week for doing nothing. They are standing outside the Employment Exchanges, and many of them will never get a job under the existing system. Out in India is a thrifty race under our control, who are starving for want of sugar-cane crushing machinery, tractors, ploughs, pumps for wells, and so on, while our unemployed people at home, who might be producing the goods. are drawing an average of £1 a week for doing nothing.

Why cannot we take up the suggestion of one of the agricultural departments in India, and why cannot we say to the people in India: "We will offer you these millions of ploughs, and cane-crushing machines and automatic pumps free of interest, to be repaid in one or two harvests." What we should lose in interest would be more than made up financially by the saving at our Employment Exchanges.

The Noble Lord is the one man in the Government who has shown any interest in this problem, and I acknowledge that the suggestions I have made have been taken up and sent out to India. Recently he has asked for a report upon them; since this evidence has become available. But I ask him to do more, and make this a question of State policy; to link it up with British unemployment. It is not something that we are offering as a free gift to India. It is good business. It is good for our own industries: it is good for our engineering and steel and iron industries. If India can increase her purchasing power, she is a permanently increased market for our goods. These figures have never been disputed. If we increase the purchasing power of the people of India by ¾d. per head per week, we increase the purchasing power of the world by £40,000,000 a year. Lancashire can get busy. You give her the chance of being busy. And there is no other way in which we shall ever he busy again but by increasing the purchasing power of our customers. We have no markets for our goods, and that is because the people are too poor to buy, and they are too poor to buy, because they have not the implements to produce goods. It is surely our business to urge the Government of India, and take steps ourselves, to organise these 318,000,000 people as an effective purchasing power for British goods. If not on humanitarian grounds, if not on the grounds of stopping this misery, despair, and ruin, then on grounds of self-interest, because of the poverty and misery among our own people. I beg the Noble Lord to take this matter up and make it an issue of State policy, and if he does, he will find, details apart, that on this side of the House he will have a hearty support, his way will be made easy, his path will be made plain, and he will give our folk at home and the peasantry of India some- thing about which they may feel proud as members of the British Empire.

I have listened to the speech of the hon. Member for Dundee (Mr. Johnston) with unusual interest. This subject was the burden of my own faltering maiden effort in this House, and I have raised this problem almost every year since. But I think that possibly the hon. Member did a little less than justice to the work that the British Raj has actually achieved in India. I have here the notes of the first speech that I delivered in this House, and I see that many of the particulars are applicable to this discussion now. I have the figures of irrigated land in India. In 1865 the area was 1,500,000 acres; in 1878, 10,500,000 acres; and in 1925, 30,000,000 acres. It is really astounding how much the British Raj has done in that country for the agricultural classes no less than for those living in the towns, and I think it is desirable that in this House we should pay a tribute to the work done out there as well as speak of the work that we desire to do.

With regard to the future, may I say a word or two, particularly in regard to the Royal Commission on Agriculture which has just reported? I suggest that the hon. Member for Dundee scarcely understood the reason why the question of land revenue was excluded from the reference to that Commission. I do not think it is possible for anyone who has studied the Report of that Commission to fail to notice what an extraordinarily wide ground it was obliged to cover. Personally I believe it was a deplorable mistake—I said so in private and in discussion in one of the Committee Rooms of this House—to appoint a Commission with as wide a reference as that Commission had. It was appointed to inquire into all the agricultural conditions and processes and everything incidental to the possibilities or the poverty of agriculture in India—a tract as large as Europe without Russia.

What should we think of anyone who appointed a Commission to inquire into the agricultural conditions in the whole of Europe, including Albania and Sweden and Italy, even down to Constantinople, and of Norway and Sweden, and of these islands in the North Sea? It would seem absurd. It was much too vast a problem for any one Commission to inquire into and report upon. If I had had my way it would have been a really intensified inquiry into one or two of the branches of agricultural prosperity, and it would have produced, and speedily I think, practical results. If that scheme which I have myself propounded in great detail in this House—in greater detail than the last speaker—is ever to make good at all, it can only be through the co-operative movement in India. The time is more than ripe for a thorough-going inquiry into the present position of the co-operative movement in India and what can be done to ensure another step in advance.

I remember that in my own scheme, which I adumbrated quite early on, I referred to the possibility of an Imperial loan from this country, directed solely to irrigation of the co-operative movement in India. I think that if the money could be poured, with due caution, into that movement, and made available to the ryots and the co-operative system, it might gradually result in such an increase in the purchasing power as that to which the last speaker referred. But I also remember the reply of my Noble Friend the Under-Secretary of State on that occasion. He told us the story of a certain plough being offered in the Punjab, and the great difficulties which existed in making that particular plough available. I would remind the House that the conditions of the various provinces of India vary as from province to province in a most extraordinary way. The problem is not as simple as it sounds. I have figures here showing the thousands of these things that are already going into India. There are oil engines. In 1923-24 the number was 2.920; and in 1924–25 it was 3,670. Those commodities were worth something like £600,000 to the trade of this country.

But do not let it be supposed that this is a wholesale problem. It is a very intricate problem and calls for very careful examination and report by experts. We are discussing an economic problem. May I for one moment touch on politics and the effect which politics is having on this economic problem? It will be much more difficult to carry out the programme now proposed than it was three or four years ago. Agriculture is a transferred subject in the provinces and the whole expenditure of the Govern- ment of India on the agricultural department is £150,000. Before the political kaleidoscope changes again in India, something will have to be done, if anything is going to be done at all. We cannot delay further if the problem is to be tackled. In a general sense, the Royal Commission has told us something about the main problem and I support the hon. Member for Dundee in his suggestion that some parts of that great problem ought to be tackled, and tackled soon, in as intensive a fashion as the political situation will permit.

There are other aspects of the political situation. It is not merely the loss of control which is taking place in regard to agriculture and other departments. 1 cannot help thinking that if the condition of affairs which we have all been studying in the last few months continues to prevail, if conditions go on from bad to worse, in the political sphere, in connection with such matters as the "no-tax" campaign in the Bardoli district, and in other ways, it will be difficult indeed to carry out any continuous constructive policy in the purely economic sphere. I shall be glad if my Noble Friend the Under-Secretary of State can give the House some satisfactory news, both with regard to the general economic position and with regard to the position in Bardoli. There, it seems to me, there is an unreasoning campaign against a very moderate levy which may be regarded as being, at one and the same time, rent and land revenue. I think the average land revenue levied throughout India is only a matter of something like 2s. an acre.

The wages are low, but certainly the levy in respect of revenue and rent combined is extremely low also. India is the most moderately taxed country in the world. A population representing nearly one-fifth of the human race pays in total taxation, Imperial and provincial, less than £200,000,000 a year. Then consider the fact that this vast tract of country, with frontiers nearly 2,000 miles in length, is defended for a matter of £38,000,000 to £39,000,000. It is a standing miracle that it is so defended; and I think we ought to recognise the facts of the case in considering these questions. I would like particularly to have an assurance from the Noble Lord that the serious situation which arose first on the Bengal Nagpur Railway, then on the East India Railway—both State-managed and State-owned railways—and still later on the South Indian Railway, will be handled with firmness. We should like an assurance also from the Members of the Labour party that those troubles will not be used in this country or anywhere else for purely political purposes.

It was interesting to hear the assertion of the hon. Member for Dundee that, in regard to India, economics were more important than politics. Only a few days ago we heard in this House from the right hon. and gallant Member for Newcastle-under-Lyme (Colonel Wedgwood) an extraordinary declaration on the same lines. The right hon. and gallant Gentleman said that for many years it had been his opinion and that of his friends on those benches, that if an advance were made in democratic forms, then a real advance towards liberty and self-government was being made. He confessed that he had changed his mind and had begun to realise that the mere development of forms in an apparently democratic shape did not involve an advance to real democracy. If more Members of the Labour party and indeed of all parties considered the Indian position in the light of that declaration and the declaration of the hon. Member for Dundee to-night, they would get a much better grasp of realities in India, and it might then become posible to put into practice some of those very productive and practical suggestions which have been made to-night.

The hon. Member for Dundee (Mr. Johnston) has entered his protest against the manner in which India has been treated by this House, and I wish, not merely to emphasise that protest, but to point out that it reveals a situation much more scandalous and disgraceful than appears on the surface. It is not merely a sort of indifference; it is positively a discreditable and cowardly action which has been contrived purposely to bring about this situation. I can clearly and emphatically express my protest in the same terms as those in which I wrote to the Prime Minister the day before yesterday. I have written to the Prime Minister as follows:

"Whilst realising that, technically, the responsibility for a debate on the India Office Vote rests with the official Opposition, whose duty it is to determine which Votes shall come up for discussion and which shall be automatically carried without discussion, yet at the same time I wish to register this strong protest that Parliament should forget its obligation towards a country of 300,000,000 people, and that you, as Prime Minister, should subordinate your sense of duty to underground intrigue, as long as you can come to an understanding with the Opposition, to ignore the moral rights of a conquered nation.

"This year there are many matters of the utmost importance taking place in India, some even transcending in seriousness anything that has taken place there in recent years. The question of the Simon Commission, for which an extra sum is placed on the Vote, has raised a controversy unprecedented in recent Indian history, and many developments have taken place behind the back of Parliament since the discussion on the formation of the Commission took place. This alone should justify a discussion on the Indian Vote. Then again there is the Butler Committee, which, under the guise of safeguarding the so-called 'rights' of Indian princes, is seriously menacing the natural birthright of the subjects of the Indian princes. In addition, there is a great strike wave in India, on the railways, in the textile industry, and elsewhere, and numerous instances of strikers being shot down, some even illegally, have been reported. Surely this also is a matter of sufficient gravity to justify discussion. Then again there is the situation at Bardoli, where an agrarian dispute, aimed at the Government, is in progress and has assumed larger dimensions than any similar dispute in India this century. Scores of perfectly innocent and honourable men, who have been victims of the Bengal Ordinances promulgated by the Labour party Cabinet of 1924, are still rotting in prison cells, and a Parliament that devoted three occasions to prolonged debate on, and appointed a Committee of investigation into, the alleged ill-treatment for five hours "—

On a point of Order. Is it in order for an hon. Member to read his speech entirely?

I am not responsible for making the hon. Member in- attentive; it is the sleepy hour that is responsible.

The letter goes on—

The real issue is how far and how long is British Imperialism to be permitted to oppress a human race of 300,000,000 people? It is futile to argue that this problem is not a political one, that it is an economic one, and that an increase of wages will do this or that. Anything you argue is for the justification of the continuation of the British rule in India. I do not know what the ideas of hon. Members may be, but again, as I have said on previous occasions, the so-called democratic British Parliament has turned itself into a machinery of oppression, robbery, denial of the democratic vote to 300,000,000 people. A little while ago we were discussing the migration problem and the rights of British citizens. My friends on the Labour Benches are fond of the word Commonwealth, but everyone knows that the very thing the British would fight most against would be permission for the British Indian subjects to migrate to Australia.

It is well known that none of the Colonies in the Commonwealth, that none of the parties in this House are going to treat Indians or Africans with anything like equality in these matters. They are going to he an oppressed and conquered race without rights in the Commonwealth, so why this humbug about a Commonwealth? The British Commonwealth must remain of two portions, the first of independent groups of people and the second of enslaved, exploited, ill-treated people. We have been talking of ex-service men with mouthfuls of sympathy. There are ex-service men in India, and the despicable British rulers in India arc giving the widows of men who lost their lives for somebody else pensions of 10d. or 14d. a week. [ Interruption. ] The hon. Member for Falmouth (Mr. Filcher) says it is not true. I say the hon. Member for Falmouth is suggesting an untruth himself. There are figures on record showing that the widows of Indians killed in the war are receiving pensions that work out at 14d. a week. India has no place in a foreign empire. To live under a foreign empire must be a curse to any country, just as great a curse as it would be to Britain if Germany, Russia, or China had conquered us. The hon. Member for Falmouth said the hon. Member for Dundee did not do credit to British rule in India. He must have been inattentive, because the hon. Member for Dundee did the fullest credit to British rule in India. There are 5,000,000 to 6,000,000 preventable deaths every year. That does the fullest credit to British rule in India.

I know that some hon. Members on the Labour Benches believe that Imperialism can be kind, that it can be benevolent. Imperialism can be nothing of the kind. I know that my hon. Friend the Member for Bow and Bromley (Mr. Lansbury) with all his patriotism and love for peace, condemns me for this Communist preach- ing of revolution. I would preach a revolution to put an end to this British murder in India of 6,000,000 lives year after year, 17,000 preventable deaths every day. That does not disturb the conscience of some people who say they are against physical violence. This is a condition which must continue under Imperialism. The hon. Member for Dundee pointed out that people are hungry, people are illiterate and that they are dying in shoals, but hon. Members on the Labour Benches believe that people in India would be quite satisfied if they were given a few annas more per day. The people of India will never be content to remain under foreign rule. They are just the same as the people of any other country. The first problem every morning when Indians rise and the last problem when they go to bed is the curse of foreign rule in their country, which they must fight to overthrow with all their might and with all the resources at their power. It would be a disgrace to British mentality to suggest to the world that foreign rule should be tolerated by any people. How could British rule continue to exist if those 6,000,000 deaths did not occur, if that poverty did not occur, if the weakness and degeneration did not occur? British rule in India could not exist for a single moment, and the British rulers know it. You cannot separate the two, you must allow the one to go with the other. One is the cause of the other. As long as British rule continues in anybody else's country, even though it were under a Labour Government, it can only be a rule of oppression, of degradation, of tyranny, of exploitation and of inhumanity. The hon. Member for Dundee suggests that we should give them agricultural implements and increase their wages. I agree. Try it. The first effect would be that before the people had got even half as strong as you wish to make them the spirit of political revolt would be higher. The House must recognise that India is governed by a foreign country because of the physical degradation and weakness which it imposes upon her. With the slightest improvement in conditions the revolt against the existence of British rule there can only grow.

11.0 p.m.

I have touched upon various matters, each one of them an index of the incompatibility of one nation's rule in another nation's country. I am not going to dilate upon the Simon Commission, but when last year I pointed out to this House the effect it had upon Indian opinion I was scoffed at and laughed at. What has the Simon Commission degenerated into? No Commission in the history of this or any other Parliament has had to undergo its tortures. Every day and every week the Simon Commission has got to plot, to lie, to intrigue, to make another attempt to deceive, to make another attempt to hoodwink and to throw dust in the eyes of the people. It is not the Simon Commission or its personnel, but a clear evidence that no nation can rule another nation against its will. How were the strikers treated in India? There have been strikes on the railways and in the textile industry. The strike on the railways has taken place because the men have refused to work for 14s. 6d. per month. That is an economic problem, and how does the Government treat it? In one case five persons were shot down, and in another case eight persons were shot. In a case which happened in March last the magistrate described the shooting carried out by the officer in charge as cold-blooded murder, and now we have been told that a Commission is to inquire into the affair and make some wonderful Report. Such things never occur in other civilised countries—

I said that there was a Report, but I was not prepared to publish it until the Court had come to a decision in an action for libel against persons who had made very much the same charge as the hon. Member is making now.

Now the Noble Lord is trying to screen himself behind the case, and his interruption is only a smoke-screen to hide the matter. The Noble Lord is referring to what happened in a railway accident. I am not referring to that, but to the fact that at Lilloah the men were picketing, and the Government brought down an armed force and shot them. That incident occurred in March, and when we asked for information we were told that a magisterial inquiry was going to be held. The magistrate stated that many persons were shot, and some of them were shot in the back. We asked for full information about the inquiry, and the Noble Lord told us that he was awaiting the Report of the Government of Bengal. That simply means that the Government are going to interfere with the judicial decision of the Magistrate's Court.

I am proud of what is going on. This Bardoli movement should have come about in 1922, and it is coming out now. It is the same problem. Inwardly it is not so much a protest against the increased rent of the land as the voice of a conquered people who are ready to seize any excuse to overthrow the British Government. I make no secret about it, for I believe that behind the Bardoli is the spirit of another Indian revolt to overthrow the civil government in India, because the people think that their present rulers have no right to stay there for a second longer. All these things are now being carried out under a sort of camouflage which enables the newspaper editors to write about these things.

I want to say a word or two with regard to the movement known as the Workers' and the Peasants' Party. Somehow or other, because there has been a Workers' and Peasants' Party in Russia and China, and there have been revolutionary movements for mass freedom, some of our friends seem to think that a Workers' and Peasants' Party in India must be a sinister movement. It is not. In countries like Great Britain, Germany or France, which are highly industrialised, the trade union movement alone may be sufficient for mass organisation; but, in countries like Russia, China and India, where the proportion of industrial population would be barely 20 to 80 of agricultural population, a trade union movement pure and simple stultifies its own object, and we find that in India masters, as soon as they find the workers organised and joining the trade union movement, can afford to dismiss them wholesale, because they have behind them an ocean of humanity from which they can capture fresh material. In those countries where the ratio of industrial to agricultural and peasant workers is so small, the only successful method of safeguarding the industrial and trade union rights of the industrial workers is by a recognition of the Workers' and Peasants' Party. I do not want the House to blame anyone for using such organisations under the pressure of some real, bona fide economic excuse, but it cannot be denied that the one object of such movements must be political, and is rightly political; and, if it were not political, we should be sorry for the whole of India as a mass of human beings who would not deserve to be called by that name.

This Parliament is supposed to be a great model of how the popular wish has brought under control and check the prerogatives of the Crown, and made it a constitutional monarchy. The Crown dare not do this, the Crown dare not do that; the Crown must not do many things, even though they be technically possible. This is the Parliament that is supposed to create those checks on the prerogatives of the Crown, and this, at the same time, is the Parliament that preserves to itself several rights as against; the rights of the people of India. What do the people of India require? Whatever they may require, the function of this Parliament is simply to govern them autocratically by means of these reserved grants, through the Viceroy or some other agent of the Crown. This Parliament, against the rights of 300,000,000 people, barely 5 per cent. of whom have the franchise, makes the Crown function, and exercises those barbarous and savage rights which any king NV ho exercised them to-day would be ashamed of, and which no people would tolerate and no Parliamentary institution would permit. This Parliament, pretending to be the model Parliament of the world, which controls the Crown and gives predominance to the wishes of the people, acts in India as an Imperial Parliament, suppressing the birthrights and wishes of the people, and making the Crown the arbitrary, autocratic, unjust, corrupt and oppressive ruler over the people.

The other day we asked the Noble Lord a question with regard to the scandal in connection with the Bombay reclamation. In this Parliament, when a subject is put to unjust expense, compensation is given. The Government now shirk their responsibility by denying an open committee of inquiry. It is abundantly proved that all officials from the then Governor of Bombay to the engineers in the Department have made large sums disappear without results in the so-called reclamation of land. A commission is sent down and an Indian gentleman comes forward to give evidence. He begins to speak of corruption. Immediately he is intimidated and threatened, which no one may do before a committee of investigation in any country where people have self-government.

The Government intimidated him and sent him for public trial. The magistrate discharged him as not only not guilty, but as having proved several of the charges. I ask the noble Lord why his expenses should not be paid. The Government official who lost the case has his expenses paid by the Government, though the Government were not bound to do it. The defendant, who happened to be a stronger man than British Imperialism could crush, did not have his expenses paid. I asked the Noble Lord and he said he defended himself. He is a lawyer with a large practice. He had to submit himself to 64 full days' hearing and he had to travel about collecting evidence and incurred great expense. In this Parliament you would not refuse to compensate anyone who is put to loss, but when you come to rule India no meanness is low enough to practise.

This is how things are carried on. In the interest of the people of this country, in the interest of humanity, in the interest of the people of India it is time they gave up deceiving the world by talking about the Simon Commission and inquiries and investigations and British-made constitutions and all that nonsense. The one remedy is the immediate withdrawal of every British military add civil officer from India, and let the people manage their own affairs. If they quarrel, let them quarrel. No quarrel would be worse than 6,000,000 men, women and children slaughtered year by year. It is said it is a wonderful thing that a few soldiers are defending the frontiers. You are defending the frontiers and slaughtering the people inside the frontiers. Six million people are slaughtered year after year, apart from preventable deaths, most of them infants. No terrible German war maker ever slaughtered infants on such a large scale. No Russian revolutionary ever killed human life so systematically and so continuously.

What is the good of talking about the defence of India and about irrigation and canals and all this nonsense? Whatever is being done is not half or even one-tenth of what could have been done if the people were free to develop like all other peoples and nationalities. It is absolutely absurd to suggest that one foreign country can rule another in the interests of the conquered country. It is futile, idle and absolutely unreal to suggest that if the conquered people are allowed to grow strong and healthy they will remain conquered for a single moment. I agree that if the people of India had a higher purchasing power there would be no unemployment in Great Britain, but I entirely disagree that that condition would come about when India is within the British Empire. If the Labour Party believe that politically enslaved India is going to feed the people of Great Britain and keep them and turn their unemployment into employment, then they are bad students of human nature. As the British race, being conquered, would not feed their conquerors, so the Indians would never do so. The whole picture is unreal, the whole picture is hypocritical the whole picture is absurd. Between the conquered and the conqueror there must remain a struggle. That struggle must go on. It is no use calling it Commonwealth, Dominion Home Rule and this, that and the other thing. Such a condition of things cannot come about between two alien peoples. It is not going to tome about between Great Britain and India.

I again submit to this House, that it should make, up its mind completely and clearly in discussing various methods that the people of India should be considered as being of the same type of human beings as the people of Great Britain to whom the first instinct is liberty and freedom. This will never come to them, even if Great Britain keeps on appointing Agricultural and Simon Ccmmissions for 500 years. It will only come from freedom and from liberty. I urge this House to consider Indian problems in the serious, sincere and only real way, and in no other aspect.

I approach this question of India in quite a different way from that in which my hon. Friend the Member for North Battersea (Mr. Saklatvala) approaches it. The position, as I see it, is that India at the present time is not suffering so much from what is known as Imperialism as it is suffering from what I would call stomach trouble. The people of India require food, and they need it badly. I am afraid that India will not get any better by the mere transference from white to black, I do not think India will improve under native government. In order to justify that statement, I have to look round the places where the Indians are in a majority on the various councils. If I go to Ahmedabad, I find it practically in the hands of native owners. I find the place is dirty and insanitary. I find that the fines upon the workpeople in the mills and factories are as high as they are anywhere. I find that if workpeople in the Ahmedabad mills lose a day, they are fined another day on the top of that. If they have an advance in lieu of wages already earned they have to pay extortionate interest on the money. I find, in addition, that the conditions inside the workshops are as bad as in the very worst British workshops. If I go to Calcutta, I find that where there is, generally speaking, Indian administration in the main, there are women doing sewage work for 4d. a day. I find that there has been a strike of women municipal workers against their fellow Indian masters.

These are some of the working class points of view from which we should look at India. I find that 250,000,000 Indians get, so it is said, rather less than a handful of rice a day. Rather than stirring up any great political strife amongst those Indians, I think it would be better to make an attempt to feed them better than they are fed at the present time. Moreover, it would be a good thing for the Government to encourage the wholesale organisation of the workers on the railways, and certainly in the jute mills, the textile and woollen mills, the Kolar Goldfields, the ports and in the mining areas. They should be organised into powerful trade unions in order that they may face the employers, whether they be Indians or Britishers or, in the mining areas, Scotsmen. What is needed amongst the Indians is education in trade unionism in order that they may be able to organise in the very factories of which the hon. Member for Battersea North speaks. I cannot help feeling that the Indian Zemindar, for example, might set a good example to other people by cleaning up Kankinarrah, which is a plague spot, a cesspool of disease, and a sweaters' hole. It is at the present time one of the most insanitary places I have ever seen—and I have seen some places in Mexico, in the United States, in Canada, and European centres. In Kankinarrah we are asked to believe in the Swaraj. In that place, Nationalism is a good thing, Swaraj is a great thing, and it is the advocate of Swaraj who is bleeding the place at the present time. It is no use asking me to oppose the Britishers in India when I see the other people worse in many respects, as far as I am able to judge. It seems to me that if there is any difference, they are pretty well both alike. In the same way with regard to their Legislature. In the Legislature when Measures have been proposed for the improvement of the Indian working people, have the Swaraj supporters sworn to help the women of India to get maternity benefit or the men to get a reduction in the hours of labour? I witnessed debates in the Delhi Legislature, and I did not see anything forthcoming which would make me believe that there would be any advantage to the working people of India in a change from white to black. Rather on the contrary, I say that it would be better for the working people of India for the Government, whether it is this Government or an Indian Government, to give them a free scope in order to be able to meet their employers on better terms. It would be better to give the great mass of people employed in the jute factories, in the textile woollen and cotton mills free scope to organise themselves in order to improve the standard of life and better conditions. If the Government would give them this freedom, to which I think they are entitled, they would then get what is necessary—bread. That is the first necessity for the Indian people. It would also set up a standard which would assist agriculture and the clothing trade, and be of advantage to the working people in many other parts of the world.

It is when we come to the question of housing and speak about a change over that I am astonished. Any man who went from this country to see Indian conditions would fail in his duty if he did not see the housing conditions and the working people. Take Khargpur; there is no man in this country with the lowest conceivable wage who has such a rotten and vile house to live in as the working man at Khargpur. Men employed in skilled trade like blacksmiths get lqd a day for work for which a man in this country gets 9s. a day. The Government cannot, however, shirk its responsibility in the matter of housing. After all, the railways are practically if not entirely Government controlled and managed. I am not saying that in their case they are any worse than others in close proximity run by the Indian people, but I am making it clear that as far as employers are concerned, whether they are British or Indian, that there is no difference at all. At the same time, if we look at the great problem of housing, we find that there are 60,000,000 houses without any taps, water pipes, or lavatory system of any kind or description.

It seems to me that Great Britain has been extraordinarily lacking in attention to a very important piece of work. There is need for a great improvement along those lines—the food line and the sanitary line. They seem to me to offer enormous possibilities from an employing and economic point of view. It would set the world's industries going if we brought in slowly a sanitary system for 60 million houses. I get that figure from the census of 1921, and the total must be higher now. Then there is the fact that only 22,500,000 people out of 320,000,000 in India can read and write. What about the world demands that would be set up if we started to build schools for the people of India? The whole thing is full of possibilities. There is the old adage "After bread, education." I see tremendous economic possibilities in the proposal. I suggest, further, that as speedily as possible the Government of India, in conjunction with the India Office, should take up the question of the organisation of the workpeople of India. They ought not to be afraid of people who are there stirring up strife. If a dozen decent British trade union organisers went to India I believe it would be possible to organise the railway men on such a basis that they would be disciplined from the point of view of working-class organisation, and they would have some one to negotiate conditions for them. The men in the present organisations in Bombay have had no experience in trade union organisation or in negotiation. I have no doubt that they are very good Communists and very good students, and they may be well-educated young men from the universities in India, and so on; but from the workmen's point of view they are not capable organisers, they are not capable trade union men, and in addition, they have not the slightest notion of negotiation. My view is that the most helpful thing to India now would be the provision of capable and experienced trade union organisers to aid these people and to advise them in negotiations. A penny per day more in the case of 750,000 railwaymen would be a God-send from many points of view. It would mean an extra meal per day. That is what we have t,-; do. I suggest that the matter should be considered from the point of view of the labour needs of the Indian workers.

I do not agree that all this boycott is a very serious thing at all. I was out there when the boycott was going on, and if I could not organise a better boycott than that I would turn up the trade union movement. It is a very easy thing to get a lot of men to come out and protest, and to leave them to get a hiding. It is another easy thing to get students out to protest. But students are not workmen. I am speaking from the point of view of disorganising industry, and so on. You can have out all the students you like, so far as Madras and Calcutta and Bombay are concerned; but as a matter of fact it had no effect at all an the ordinary working people; they were all working. I hope we shall not accept the idea which is accepted among some people, that the Swarajists and Indian Nationalists are the saviours of the Indian people. I do not think they are. The Indian work-people will be their own best friends if they organise on sound trade union lines to improve housing, to secure educational advance, to get better wages and shorter hours all along the line. They can thus make themselves masters of the situation in their own working class house, rather than servants in the house of the sweat- ing Nationalists who exist in India at the present time.

Having endured an hour's vague vituperation from the hon. Member for North Battersea (Mr. Saklatvala), the House may possibly like to hear one short anecdote illustrative of the hon Member's thesis concerning an Indian nation which is all one and which desires one thing, namely, the removal of the British power and of every British official and British soldier from that peninsula. Of course, I do not acknowledge that there is any Indian nation. There are a great many nations in India as well as a great many sections of religion and other divisions. Hon. Members may have received during the last week a petition from a wealthy merchant in Lucknow, of one religion, who is engaged in prolonged litigation with a charitable society, belonging to another religion. To me, this document which, I dare say the hon. Member for North Battersea has received, is an example of the way in which Indian litigants wish to get English judges to try all the cases brought before the courts of the United Provinces.

The gentleman who writes this petition happens to be of the Hindu persuasion, and he is in litigation with a wealthy Mohammedan society. The whole of his objection is to the fact that his law suits have been brought on five successive occasions before Mohammedan judges, in spite of the fact that he has invariably petitioned that an English Judge might try the case because religious matters were involved. It seems to me, if that petition represents the mentality of a wealthy educated Hindu in Lucknow, that it does not say much for this general conception o: a community of Indian feeling desirous of removing English Judges, English magistrates and English officers. I do not know whether or not this Hindu gentleman is right on the legal points involved in his case. He may be quite in error. But what I would point out is that a Hindu in Lucknow thinks he cannot get justice from a Mohammedan Judge. That is a feeling which prevails all over India.

No one will dispute that—whether the assumption is justified or not—every litigant imagines that if be is tried before a Judge of the other persuasion, he is very likely not to get justice. This instance merely illustrates the fact, and I ask the House to draw its own conclusion. The rest of that vague vituperation from Battersea was founded on that extraordinarily untrue view of Indian history which seems to pervade many unbalanced minds, namely, that India was once a great, wealthy, and well-governed country with a teeming population of flourishing agriculturists. That does not happen to have been the case. The very earliest evidence that we have got from external sources—I am not talking of Hindu legends of a fabulous "Golden Age"—show exactly the reverse. I am referring to the reports of the early Franciscan missionaries, who went to India in the 13th century, and they give the same picture of Indian society as we find in the 16th or the 18th century—a peasantry dreadfully poor, and a limited number of very wealthy military or religious classes, in whose hands all the wealth is concentrated. It is the same through all the history that you can trace. The much boasted Indian organisation under the Moguls was a military aristocracy, an aristocracy of one religion, in which, amid continual civil war, power and wealth were continually going from hand to hand, and the supposed wonderful organisation was largely on paper.

What was the India that we took over? The hon. Member for North Battersea must know a little of his own history. What was India like in the days of Clive and Hastings? The Mogul Empire, dead, with Mahratta and Afghan contending for the Dominion of Northern India, while a little later the Pindaris, no man's soldiers, organised bands of robbers, were sweeping the whole country, with nobody except the slowly growing British power to put them down. Thuggee is the characteristic institution which Indian rulers for a thousand years allowed to prevail, and whatever we have or have not done in India, we have put down thuggee. We have tried to put down dacoity, but it has taken a political turn of late, and young "politically-minded" Bengal seems rather proud of it. There is no doubt that, just as the population of India is now treble what it was in 1750, so also the prosperity of India is treble what it was in 1750. Our career in India, when we look back upon it, is one for which we may feel ourselves able to take credit, and least of all should we give way to that very small body of noisy. "politically-minded" agitators whose whole motto is: "Otez-vous de là que j'y me place" —"I want your job."

The hon. Member for Oxford University (Sir C. Oman) told us that the Indians prefer an English Judge when they are in dispute with someone of another religion, but we can look much nearer home for that kind of thing. Young as I am, I remember the time when the Irish people did not want an English judge at any price, and that kind of illustration does not help us much in the present situation. It would be an easy matter to spread oneself over this theme, and it would take many hours to touch merely the fringe of it, but I am not going to make the mistake of doing more than refer to one particular matter in which I am personally interested in India. I would point out that our very rule in India, whether it has been good or ill, in its main effects in the last 150 years has certainly created the important political problem with which we are now faced there. India was divided and made up of many nations and rulers, and all kinds of systems of governments. The very law and order that we established in India have gone a long way to unify India, and, having started on the road of unification, sooner or later we have to recognise India's claims to self-government and self-determination.

The subject to which I want to draw attention is that of the coal industry in India. During my stay in India as a coal-mining Member of Parliament, I devoted some time to the coal areas, and I was astonished to find, what I thought I never should have found outside the pages of history books—the very large number of women who are employed underground in the coal mines of India to-day. I am glad to learn that at long last the Government of India are about to introduce a Bill to reduce the employment of women in coal mines underground at the rate of 10 per cent. per year for the next ten years.

Does the hon. Member think that if India had home rule they would stop it?

If the right hon. Gentleman will be good enough to allow me to develop my argument—

I want the hon. Gentleman to answer my question. I ask him whether he thinks that, if India had home rule, they would stop the things of which he is complaining?

As a Welshman who wants home rule for my own country, my mentality is so made up that I can appreciate India's demand for home rule.

I am answering it in my own way. I say, without hesitation, that India is entitled to home rule, and, if she had home rule, the question whether she would abolish women labour in the mines or not would be her own affair. Our whole criticism is that India is governed by us from this House, directly and indirectly, and her recent legislation is legislation from this House, and I say that we have a very bad record in this direction. The point I wish to make is that, ever since the Indian Mines Act of 1901, the Governor-General of India has had the power in his own hands to issue regulations for the restriction and the prohibition of women labour in coal mines. Nothing has been done from that date until the introduction of this new proposal that women labour shall be reduced 10 per cent. per year for 10 years.

When the Indian Parliament, such as it is, was established a few years ago, one of the first indications of what Indians may do in future was shown by the fact that this question became a live one, and they passed the second Indian Mines Act in 1923, when the Viceroy was given the same power as he had under the old Act. The Government was warned 27 years ago that they ought to utilise the power they had under the Act of 1901. If they had utilised it, the problem of women labour in the mines would have been dealt with, because 27 years ago coal mining in India was a new industry, and, apart from the Raniganj coalfield, all the fields were being started, and even in the Raniganj, the output was small. Had the Indian Government taken advantage of the Act, this would have been a comparatively simple problem. They were warned by the Secretary of State from this House that, if they did not do so, the advance of vested interests would grow as the coalfields developed, and that is exactly what has happened. In spite of the passage of the Act of 1923, nothing has been done until the present moment. Under pressure from the Indian Parliament, the Government made an enquiry to find out the opinion of the local Governments in the provinces concerned, and of the interests in the coal industry. The majority of both British and Indian coal-owners were opposed to the policy of abolition of women labour in the mines.

Does not the hon. Gentleman realise that the aboriginal labour in the coal fields will not go down the mines without their women? They will not go anywhere without them.

Will the hon. Member explain why, if he makes claims of equality for the sexes, women should not go down the mines?

The last question deserves no better attention. I will now answer the other question. In the course of my own personal observation in the coal mines—some hon. Members sneer at the suggestion, but as a young lad I have worked in the mines myself—

No, in this country. The Indian miner, like the British miner, risks his life getting the coal. There are 170,000 odd coal miners employed in India to-day. Of these, 70,000 odd work underground, of whom about 30,000 are women. About 40 per cent. of the underground workers are women at the present moment; yet, in the Punjab where there are coal miners, no women are employed.

That is not the reason. The reason is that seams of coal in the Punjab are very thin, and it is a physical and uneconomic impossibility to employ women.

On the ether hand, in the coalfields of Bengal and Bihar the coal seams are very thick—from 20 feet to 100 feet thick.

Yes. If the hon. Member doubts it, we will undertake a joint visit to inspect them. It is wonderful how little the Universities educate certain people. The statistics of the Government Department of India show that 90 per cent. of the women employed are employed in Bihar and Orissa and in Bengal. Six out of 10 are employed in Bihar and Orissa and three out of 10 in Bengal. I visited both of the great coalfields. I had the assistance and company of the Chief Inspector of Mines in India. I had on another occasion the company of managers of different collieries, and I want, in passing, to pay a tribute to the splendid personnel of the Inspectorate we have in India from the Chief down to all his assistants. They are British experts with a very high sense of their duty and maintain the best traditions of our own mining department at home. I can say the same of the British who manage the collieries—Scots and Welsh, some personal friends of mine. In that sense, there is nothing wrong with the coal industry in India, but the one thing I wish to draw attention to is that this vestion of women labour ought to be settled in much less than the 10 years proposed by the Government of India. The man and wife work together. The man hews the coal and the woman scrapes it into a wicker basket by hand. No shovels are used and the woman carries the load of coal weighing 60 to 80 lbs. on her head for a distance of from 20 to 40 yards to the main gallery where she tips it into the tub. The daily task of the man and his wife is to hew enough coal to fill three tubs of a capacity of from 12 to 14 cwt. For that they get 8d. a tub, or, on an average, 2s. per shift, as their joint wages. The time worked throughout the coalfields is less on the average than 5 days a week, so that the wages they earn jointly as man and wife is 10s. a week.

The man is working on a very high gallery, much higher, often, than the roof of this chamber. He is working almost naked, wearing just a loin cloth, and his wife wears a single garment wrapped across one shoulder. Both are working bare headed, with bare arms, bare legs and bare feet. The wife's task, though less hard than the husband's, is often more objectionable. Both are work- ing bare-footed on a rough mine floor, they often bump against rocks and lumps of coal in the darkness of the mine, and their legs and feet are covered with bruises. I visited several hospitals in the mining districts where I saw both men and women incapacitated through the state of their feet. The skin was peeling off the bottom of their feet, though it was as thick as the hide of an ox. These people, in common with most of the peasants of India, soak in more disease through their feet than in any other way, this arising from the insanitary state of the towns and villages.

12 m.

When they leave the mine and go to the compound they live in huts, single room tenements, 10 feet by 10 feet, or less. There is a hole in the wall, but the huts are without windows; there is no light, no air, no supply of water, no latrine. There is a common tap and a common latrine for a group of huts. Where, as often happens, they do their cooking in this one room there is no chimney to take the smoke away, and sometimes they die from suffocation. [ Interruption. ] If they have chimneys, as the hon. Member suggests, there is no reason why provision should be made for cooking out of doors. They are suffering from bad food and bad cooking; and in the case of the food sold in the bazaars adulteration is rampant. The mother who is working down a mine often dopes her infants with opium to keep them from crying, because there is no one to look after them. [ Interruption. ] An hon. Member laughs. He ought to be ashamed to laugh at these happenings under the British flag. If he says he is not listening to me then he ought to be listening. The men and women of whom I am speaking are neglected. They are suffering from malnutrition and bad labour and housing conditions. The children are still more grossly neglected. Out of every 1,000 children born 137 die before they reach the age of one year. I think it is vital that we should say to the Government of India that they are taking up a wrong policy when they propose that all this misery and degradation should continue for another eleven years before it is entirely abolished. Something should be done at once, and we should tell the Government of India that the time has arrived when, in the only country where woman labour is still employed, it should cease immediately. The argument against that is the same as that which has been used for the last thirty years, and it is that, if you abolish women labour it would disturb the industry, and you would not be able to get others to take their place with the result that the industry could not carry on. That story has been put forward for the last thirty years, end, if it meant anything at all, why have the Government not faced the facts? The Government have already admitted that the prohibition of women labour has got to come. We are told that it will come -within the next 10 years, but I assert as a practical man, that three years is ample. The last five years was the proper period to carry out this change, because that has been a period of depression in the coal industry in India, during which it could have been brought about with a minimum of disturbance to the industry.

There are certain classes of miners in India who will not allow the women to work underground, because it is part of their religion, and in those cases the managers of the mines employ only man labour. Most of the British mine managers in India want to see the abolition of women labour in the mines, and they would gladly welcome such a change; in fact, they are ready to reorganise the whole industy along those lines if they had their way. This would be carried out but for the fact that the Government of India are afraid of disturbing the present system. At the present time, India is a full member of the League of Nations, and that body has discussed this question for years past. I think it is high time that this stigma should be removed from the one part of the British Empire where it still remains. This House will be neglecting its duty unless it uses its influence through the Government to insist that the period for the abolition of women labour shall not be ten years, but three years. If that is done, we shall be doing something to pacify the miners of India. It has been said that some of the miners of India will not go underground without their women, but that is not true. Many of these people are illiterate, and, when they are told that if the women are taken out of the mines they will lose their jobs, they believe that story, because they are just the type of miner that is influenced by such stories. The same thing happened in this country less than one hundred years ago. The women of India, as well as those living in Great Britain, are entitled to live their lives in their homes where they can look after their children. The Government of India ought to provide elementary schools for the children of the miners of India. I believe that reform would raise the standard of life in India. The managers of the mines admit that if the women are taken out of the mines the men will become more efficient in their work. As one who has seen the mining conditions in this country and in India, I say-that the output would be increased if the women were not allowed to work in the mines. On economical grounds this ought to be done, and on the grounds of humanity we have passed the time when women labour should have been abolished. I shall continue to urge this reform until it has become an accomplished fact.

I do not wish to say anything hostile to the speech delivered by the hon. Member for Dundee (Mr. Johnston), because I sympathise very much with his contention. I must say, however, that I do not think the hon. Member can blame the Government for not having given an opportunity before this for a discussion on Indian affairs.

I expressly said that the difficulty arose owing to the system under which we discuss the business of the House.

I fully recognise the fairness of the attitude taken up by the hon. Member generally, but not in this matter. This is the sole occasion on which Indian affairs have been discussed, and I do not want it to go out to India that the Government have been remiss. The responsibility rests with the two Oppositions. They have had dozens of opportunities. There have been 20 allotted days. There has been no Member of the Opposition below the gangway who has taken the slightest interest in Indian Debates. If the Opposition above the Gangway are interested in Indian questions, how have they made use of their opportunities? They did not ask for a single day. They could have dealt with Indian affairs on the Consolidated Fund Bill. They could have made representations to Mr. Speaker earlier this week pointing out that India was more important than the interests of the P Class of civil servants. It is not our fault that the matter has not been raised. I am not blaming the hon. Member himself. I agree that the system is responsible, but those who work the system from the other side of the House have an equal responsibility with the system itself. It is important that it should not be considered in India that the Government are responsible for what I admit is a ridiculous state of affairs, that the only Indian Debate in the whole Session should be taken at ten o'clock at night at the end of the Session. It is a very wrong system, and it ought to be altered, and I hope hon. Members will do something to alter it in the next few years, because they have much more power to do so than the Government.

In regard to what was said on the subject of the Agricultural Commission's Report, I take it the gist of that Report was this. The Commission early discovered that, great as are the improvements that. can be effected by providing better cattle and better arrangements for the disposal of produce and by research, the essential preliminary to better farming and hater business is better living. With that the hon. Member fully agrees, and he has suggested one means by which that may be brought about. It would be impossible to deal adequately with this very important portion of the Commission's Report or the way in which they point out how an improvement could be brought about. But do not let us be too gloomy. Do not let us suppose, as some hon. Members appear to do, that nothing has been done in this respect in the last 25 years. I make bold to say that more has been done for the cause of agricultural advance, for the improvement of the methods of cultivation, for the position of the cultivators themselves and for better conditions in agriculture than has been done in any previous 100 years, or I might even say 00 years. We have a striking example in what is known as the Gurgaon experiment, where the Royal Commission found that everyone is willing to help, officially or unofficially, in the great campaign for the betterment of the life of the district. All forms of propaganda are used, and at the same time facilities are being provided for domestic economy classes and matters of that kind. One result of that campaign has been to provide 600 stud bulls. I was told by Mr. Brayne, the real author of this experiment, that there were more stud bulls it his single district than in the whole of Madras.

In my speech last year I referred to other work that has been done by the Government in the agricultural field. I referred to such matters as the development of co-operative societies. This work has been done partly by Government agency and partly by voluntary agency. The extent to which co-operation has increased is very remarkable. I believe the co-operative movement came into existence only 23 years ago and there are over 70,000 societies now with a membership of more than 2,500,000. That does not look as if we had been neglectful of the interests of agriculture. The Commission refers to agricultural research work which is going ahead and will, if the recommendations are carried out, go ahead still faster. There is also agricultural education and field work. When we come to other social institutions helping to raise the status of the worker, we have such institutions as the Social Service League in Bombay, with its dispensaries for the supply of medicine and instruction in hygiene and the management of children and health generally. There are health weeks and baby weeks in various parts. The Boy Scout movement is going ahead. There are 80,000 boy scouts in the Punjab alone. I could instance dozens of examples of how social work is advancing.

When hon. Members criticise the poverty and the position of the ryot, do they realise with whom the opportunity rests for improving it? It is with the Indians themselves. I agree with the hon. Member for the Forest of Dean (Mr. Purcell). No one would suggest that he was likely, to be predisposed in favour of British rule in India—I hope I may say that without offence—yet he admitted, from his knowledge of what he saw, the extent to which the responsibility rests with Indians themselves. It is a fact that the power rests with the Indian Legislature and with the Minister very largely to deal with this matter. Agriculture itself is a transferred subject. It was stated that one reason why the Minister in charge of transferred subjects could not carry out what are known by the hackneyed term "Nation building services" was that they were not provided with sufficient money. The remission of the provincial contribution, for which the distinguished gentleman who went out from this country to become Finance Minister was responsible, is going to assist very largely in providing the necessary funds.

May I ask the Noble Lord to emphasise the work that has been done by the Pusa Research Station and, in particular, the extraordinary advance they have been able to effect on the increase of the rice crop, in some cases up to ten-fold, and also the work they have done for the cotton crop? It is almost incredible—I use the words without any exaggeration—the amazing results that India owes to the British Research Institution.

I am very much obliged to my hon. Friend. I am glad that he reminded me of that. It is amazing what has been done in the improvement of wheat and rice, and I think that Institution—I am not sure whether it was that particular institution—or some other Agricultural Research Institution in India has also been responsible for great improvements in the matter of sugar. Take the question of irrigation. When all the schemes, either in operation or contemplated, are in full working order there will be no fewer than 40,000,000 acres of land in India under irrigation. With regard to our railway system, we have some 39,000 miles in operation, we are building another 2,000 miles at the present time, and another 2,000 miles are contemplated. All these things are intended to assist the individual in India, whether cultivator or industrial worker in the towns, to improve his position. I have only one other thing to say under this heading, and I will only allude to it in a sentence or two. It was mentioned by the hon. Member for North Battersea (Mr. Saklatvala), and it is the only reference that I am going to make to him, for, while I admire his sincerity, I discredit everything that he says in this House, because he perverts every fact of history. He knows as well as anybody in this House, because he is the only Indian in this House, that whatever may be said for or against the systems of religious customs and observances in India, that economically, at any rate, some of these customs have been the greatest drag on the well-being of the Indian people. The hon. Member knows as well as anybody in this House that I am stating facts.

There is one other matter to which I want to refer before leaving agriculture. It is the very important question to which the hon. Member for Dundee referred, the question of financial facilities for the purchase of improved agricultural machinery by the Indian peasants. I always listen with great interest to the hon. Member on this point because I know his enthusiasm in the cause of the uplift of the industrial and agricultural population of India, and I know that he believes that by the system to which he has referred on several occasions in his speeches from that Box he would be able to do a great deal for employment in this country. But, as I have pointed out on previous occasions, it would be wholly unconstitutional for the Secretary of State to interfere with the administration of the agricultural departments in the Provinces. The question of agriculture, as I have already said, is a, transferred subject. The suggestions, as the hon. Member knows and as he stated in his speech, which have been made by him have already been sent to the Government of India, in case they may think that it is desirable to transmit them to Provincial Governments, and at the moment no other action by the Secretary of State is possible. I am speaking sincerely when I give him an entirely friendly warning on this matter. His motives are liable to be seriously misconstrued in India as an endeavour to exploit the Indian peasant for the benefit of the British manufacturer and the British workman. I have seen suggestions to that effect in the Indian Press. I am aware that they are entirely groundless, but I only mention the matter in order that the hon. Member may realise how easily all of us—both those who hold official positions and those who do not—are apt to incur unfair criticism when we begin to handle matters of this kind. What is said here in reference to the Indian agricultural worker is equally true when one is referring to the Indian industrial worker. I have not the slightest doubt that there will be some people in India, if they should happen to read the speech of the hon. Member for the Forest of Dean, who will say, quite untruly, that what the hon. Member is driving at is, that he hopes to raise the cost of production in India so as to make it more difficult for India to compete with the British manufacturer and the British workman, and he is only speaking on behalf of his constituents. I only mention that because I have seen some of the most ferocious attacks made on hon. Members opposite.

The only other matter to which I must refer is the question of industrial unrest. I need not recapitulate the serious events that have taken place, because I have dealt with them in answer to questions, but there are one or two features to which I must specially refer. No doubt strikes in some places have been engineered by experienced agitators, and carried on under their influence. For example, that is true of Lilloah and it is true of Jamshedpur, where there has been a strike in the great industry of Messrs. Tata, with which firm the hon. Member for Battersea North was formerly connected. There the strike has been in existence since the beginning of May, and has been carried on, I understand, without the approval of the Workers' Labour Association. It appears to be due to outside agitation. That, incidentally, supplies the argument in favour of the point of view put forward by the hon. Member for the Forest of Dean that it is very desirable that trade unionism in India should be on a better basis than it is at the present time. With that aspiration let me say at once, my noble friend, the Secretary of State and the Government of India entirely agree, I think it is most desirable that trade unionism there should be on a better basis.

With regard to the strikes which have taken place in other parts of India, some of them have no doubt been due to what the workers believe to have been legitimate grievances on their part. In regard to the action of the police, which has been criticised on one or two occasions by hon. Members opposite, I want to take this opportunity of saying that while it is unfortunate that several disturbances have resulted from the strikes, and occasionally it has been necessary for the police to fire two rounds in order to protect themselves from the riotous mobs or to restore order, the most remarkable feature of these episodes is the great self-restraint shown by the police of India. I do not believe that even in this country—I have said this before, and I repeat it—you can find greater devotion to duty than is shown by the police in every Province of India. A large number of them have been injured in the execution of their duties. Let me give one instance to the hon. Member for North Battersea and the hon. Member for Shoreditch (Mr. Thurtle) who criticised me at Question Time over this matter, directly or indirectly. In one case which occurred on the South Indian railway recently, where the police had to intervene, the strikers endeavoured to pull the engine driver from the cab of his engine and to throw him into and burn him in his own furnace. The police, very properly, intervened to protect the man, and in their intervention casualties occurred. I believe that no hon. Member, including the hon. Member for North Battersea, would say that the police had done otherwise than their duty. It is impossible to believe that all these strikes have occurred independently and are solely due to economic grievances. There is strong reason to believe that they have been deliberately fomented by Communists, who utilise grievances in order to foment trouble. I cannot deal with this subject fully, but I should like to reassure those hon. Members on my own side who have had some apprehensions in regard to it, that there have been already several arrests of Communists. Their conduct in connection with the strikes is about to go before the courts, and I would add that, if necessary, the Government will not hesitate to take other action with a view to checking an agitation which is likely to do so much harm to the workers themselves.

The other point is the question of remedial measures. I have already said that some of the strikes are due to what the workers believe to be grievances, and I want to make it quite clear that the challenge on the part of Communists and agitators will in no way deflect the Government from its policy of remedial measures to improve the lot of the workers in redressing genuine grievances. The Government of India has a long list of enactments to its credit in the realm of industrial and social reform. Hours have been shortened, the minimum age for employment has been raised, a weekly rest day provided by the Factory Acts of 1922 and the Mines Act, 1923, workmen's compensation has been secured, and a Bill is now being considered for improving the existing system of workmen's compensation; penal contracts where they exist have been made illegal, and trade union Acts have been passed to facilitate and help trade union employment.

Does not all this arise from the fact that an Indian Parliament has been granted, and that they have been able to exercise pressure on the Government?

I am not really concerned to accept or deny that. It has no bearing on the question at all. The question is what is being done, and I am meeting the charge so frequently made by the hon. Member, that nothing has been done in India for the working man. In no country in the world has so much remedial industrial legislation been passed in recent years as in India for the past seven or eight years.

What does it matter from where the compulsion came so long as the work has been done? In addition there is the Bill imposing a daily limit for work in mines and there is the Act which prohibits the employment of women in mines underground. I do not propose to follow the hon. Member for Pontypridd (Mr. Mardy Jones) in the long and detailed description he gave of the conditions in India now. He must be aware that in all forms of human activity the conditions which prevail in the East are widely different from those in the West. The long description he gave of the dress and habits of the people has little relevancy to the question.

Is it not the case that five or six minutes of my time were taken up by interruptions?

The hon. Member should not have listened to the interruptions; he should have got on with his speech.

I will obey the hon. Member's injunction. With regard to the question of women labour in mines, there again it is not necessary for me to deal in detail with the charges which the hon. Member made. The House, I think, may be satisfied that by progressive stages this particular form of work is being abolished. It is exceedingly difficult to break customs which go back for many years, and it has always been the custom of women to accompany their husbands in certain forms of labour. Those hon. Members who are present will agree that they have seldom heard a more effective answer to the charges of the hon. Member for North Battersea than that given by the hon. Member for the Forest of Dean, and I regret that the speech was not delivered at an earlier hour. However, I hope it will be read by some people in India.

The House has borne with me very well, and I do not wish to trespass on its time any longer, except to say in a sentence that the Government of India, or rather the Government in India generally, by which I mean the Government of India and the provincial Governments, do not always have a very easy course to pursue. They have the duty of maintaining an even keel between the shoals and the rocks, and it is not very easy for them to do so. They need the sympathy of this House and of the people of Great Britain. They are also entitled to receive more credit than they often do receive for the many excellent aspects of their administration. The Government gets very little support in India, even from those who rely on it and believe in it. It is, therefore, entitled to some support in this country. For those reasons, I venture to think that whatever Government is in power here, it is the duty of this House from time to time to discuss the affairs of the Indian Government. We should avoid party prejudice, and I agree that hon. Members opposite have done so, as far as we can do so, and in that way we can assist the cause of good government in India and assist the cause of good relations between Great Britain and India.

Question put, and agreed to.

Bill accordingly read a Second time, and committed to a Committee of the Whole House for To-morrow.

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 Brackley, the rural districts of Middleton, Cheney, and Brackley, and parts of the rural districts of Daventry and Towcester, all in the county of Northampton, and the borough of Buckingham, and the rural districts of Buckingham and Winslow, all in the county of Buckingham, which was presented on the 17th day of .July, 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 the rural district of Crick and parts- of the rural districts of Brixworth and Oxen-don, in the county of Northampton, which was presented on the 17th day of July, 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 the borough of Kidwelly and parts of the rural districts of Carmarthen, Llandilo Fawr, and Llanelly, in the county of Carmarthen, which was presented on the 17th day of July, 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 Amersham, in the county of Buckingham, and parts of the rural district of Berkhampsted, Hemel-Hempstead, and Watford, in the county of Hertford, which was presented on the 12th day of July, 1928, be approved."—[ Colonel Ashley. ]

Companies Bill

Motion made, and Question "That the Lords Amendments be considered forthwith," put, and agreed to.—[ Sir P. Cunliffe-Lister. ]

Lords Amendments considered accordingly.

CLAUSE 82.—(Declaration of law as to payments received by directors for loss of office or on retirement.)

Lords Amendment:

In page 79, line 33, after the word "been,' insert "properly."

Motion made, and Question proposed, "That this House doth agree with the Lords in the said Amendment."—[ Sir P. Cunliffe-Lister. ]

May I ask if the President of the Board of Trade can kindly tell us exactly what this Amendment means?

Yes, certainly. The Amendment is made in order that the person who shall be liable is somebody who has been properly instructed to carry out the order. Suppose, for example, the hon. Member himself had nothing whatever to do with a company of which he was a director, then he would not be liable merely because of that if the company were found guilty of an infringement of this Clause.

Question put, and agreed to.

CLAUSE 110.—(Application to Scotland of certain provisions.)

Lords Amendment:

In page 98, line 12, at the end, insert

"(5) Subsection (8) of section ninety-two of this Act shall not apply to Scotland."

Motion made, and Question proposed, "That this House doth agree with the 'Lords in the said Amendment."—[ Sir P. Cunliffe-Lister. ]

I think we ought to have an explanation as to precisely what this means, and also as to whether or not Scotland is being prejudiced in the matter.

This is the Clause which deals with what is colloquially known as share pushing. There is a provision that for any breach of the conditions of Section 92 there shall be a fine or possibly imprisonment, imposed by a court of summary jurisdiction. In Subsection (8) there was a power given to the court to make an order declaring a contract void with any necessary consequences which follow. I confess that my attention had not been particularly drawn to it as it stood on Report stage. On the Report stage a right of appeal from the latter part of the sentence was inserted, and it was the passing of that Amendment that drew my attention to this Sub-section, because, quite obviously to those familiar with our Scottish jurisdiction, such an appeal is not a practical thing on what is a civil issue. On looking at the earlier part of Sub-section (8), it seemed to me that it was equally not practical. A vital thing is that while in an English court the action may be initiated by the person who was the share pusher, he cannot in Scotland take part in any such prosecution. Nay, he could not be added to it. Therefore, you cannot really have the second party, who is interested in the civil question, as a party to these proceedings. Equally, it is outwith precedent that what is the civil question should be decided by a criminal court in Scotland. I see no practical way by which you can get an appeal from a decision of the criminal court to the civil court in Scotland. For these reasons, it seems to me this is unworkable in Scotland, because of the distinction which are in many ways favourable to Scotland.

May I ask the Lord Advocate if we are to understand that in Scotland the victim of a share pusher is to be at his own expense in undertaking a civil action to have a contract voided, whereas in England such action is undertaken by the legal authorities. Are we to understand that in Scotland the victim is to be out of pocket and liable to the necessary charges involved in having the contract set aside?

If the person who has shares pushed upon him is the person to prosecute, I understand that the costs will be his to that extent. I agree that this involves a distinction—a necessary distinction, because of the different systems in Scotland.

Is it the case that an order cannot be made setting aside such a contract following upon Scottish law?

A declaratory decision that the contract is held as void would be a civil decision.

Question put, and agreed to.

Remaining Lords Amendments agreed to.

The remaining Orders were read and postponed.

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

Adjourned at Seventeen Minutes before One o'Clock.