House of Commons
Wednesday, December 17, 1930
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Private Bills,
The CHAIRMAN OF WAYS AND MEANS reported, That, in accordance with Standing Order 87, he had conferred with the Chairman of Committees of the House of Lords, for the purpose of determining in which House of Parliament the respective Private Bills should be first considered, and they had determined that the Bills contained in the following List should originate in the House of Lords, namely:
Amalgamated Societies for the Blind.
Ashton-under-Lyne, Stalybridge, and Dukinfield (District) Waterworks.
Bacup Corporation.
Blackburn Corporation.
Brighton Corporation.
Brighton, Hove, and District Transport.
Corby (Northants) and District Water.
Coventry Extension.
Dagenham Urban District Council.
Doncaster Corporation.
Epsom Urban District Council.
Felixstowe and District Water.
Gas Light and Coke Company.
Grand Union Canal.
Hackney Borough Council.
Liverpool University.
London Assurance.
London Squares Preservation.
Lower Avon Navigation.
Lowestoft Water and Gas.
Middlesex County Council.
Mitcham Urban District Council.
Neath Canal Navigation.
Northampton Extension.
Oldham Extension.
Preston Corporation.
Romford Urban District Council.
Rotherham Rural District Council.
Royston and Brodsworth Gas.
Scarborough Corporation.
Stoke-on-Trent Extension.
Trowbridge, Melksham and District Water Board.
Yorkshire (Woollen District) Transport.
Oral Answers to Questions
Questions
Portuguese Ports (Flag Discrimination)
asked the Secretary of State for Foreign Affairs if he has now received a reply from the Portuguese Government to his communication of 21st November on the question of flag discrimination?
I am glad to be able to state that the Portuguese Minister for Foreign Affairs has informed His Majesty's Ambassador at Lisbon that a decree will be issued early in January abolishing flag discrimination as regards quay dues and that methods of helping the Portuguese mercantile marine by expedients other than discrimination are now being studied by the Portuguese Government.
Can we rely on the Portuguese Government not running away from any undertaking that they may give?
League of Nations
Expenditure
asked the Secretary of State for Foreign Affairs the proportion of the contribution of His Majesty's Government to the total expenditure of the League of Nations for the 12 months ended to the last convenient date; whether any additional expenditure was necessitated by the expanding work and increased responsibilities of the League of Nations; and if he can say whether all other members of the League have paid their quota?
The contribution of His Majesty's Government in the United Kingdom to the budget of the League of Nations, including the International Labour Office and the Permanent Court of International Justice, for the year 1930 amounted to, roughly, £116,000. The total budget was about £1,128,400, representing an increase of £74,000 on that of the preceding year, necessitated by the increased activities of the League of Nations. Certain States Members are still in arrears with their contributions, but there are indications that, as the result of the greater importance now attached to prompt payment, the States concerned are taking steps to reduce their outstanding obligations.
Can the right hon. Gentleman give me the names of the States which have not paid their quota?
There is no reason why that information should not be given.
Is it not a fact that our contribution is about 1 per cent. of the amount we are spending on preparations for war?
Is it not a fact that our contribution is larger than that of any other country?
Arbitration, Conciliation and Judicial Settlement
asked the Secretary of State for Foreign Affairs when it is proposed to accede, on behalf of this country, to the General Act of Arbitration, Conciliation, and Judicial Settlement, in view of the agreement reached at the Imperial Conference?
I hope that, subject to the exigencies of public business, it may be possible to afford an opportunity for debate before Easter.
If I put this question down in January, will the right hon. Gentleman try to fix a date?
I cannot fix a date at the moment.
When will the right hon. Gentleman be in a position to fix a date?
Poland (Minorities)
asked the Secretary of State for Foreign Affairs if he has considered a statement, signed by 52 Members of Parliament, asking him whether he will use his influence towards the release of political prisoners in Poland and whether he will raise the question of the Ukrainian minorities in Poland as a member of the Council of the League of Nations; and can he say whether he will take any action on the lines of the statement?
I have received a copy of the statement referred to, and have given it my careful consideration. I cannot undertake to make any general representations to the Polish Government in favour of the release of political prisoners, since I have no sufficient ground for such intervention in the internal affairs of another country. As regards the Ukrainian minority, I understand that petitions have been presented in due form to the Secretary-General of the League, and these, with the observations of the Polish Government, will be carefully examined. I trust that these observations will be received in time for the matter to be dealt with during the next session of the Council of the League in January.
Mandated Territories
asked the Under-Secretary of State for the Colonies if he will state what mandated territories make contributions to the cost of local administration; what is the total cost to this country in the fulfilment of treaty obligations in the mandated territories; and when the equal rights in trade which foreign countries enjoy with this country under the mandates will be revised?
The local administration of all mandated territories is a charge upon the finances of those territories. The only charge falling upon the United Kingdom in respect of local administration in mandated territories in the current financial year is £84,000 as grant-in-aid to Transjordan. As regard the third part of the hon. and gallant Member's question, the terms of the mandates which provide for equal commercial rights for all States members of the League of Nations can be altered only by the unanimous decision of the Council of the League of Nations.
In view of the responsibilities of this country, will not that question be raised, in order to see whether some benefit cannot be given to British trade?
I should have thought the hon. and gallant Member would have known that it is an integral part of the conditions under which mandated territories are administered that there must be equal treatment for all members of the League of Nations.
Is it not a fact that, in addition to the unanimous vote of the Council of the League, a two-thirds majority of the Assembly is required to amend, not a mandate, but the Covenant itself.
Yes, I believe that is so.
Questions
Beitish Industries Fair (Passports)
asked the Secretary of State for Foreign Affairs whether his attention has been called to the recommendation contained in the report of the Chelmsford Committee to the effect that free passport visas should be made available for three months to visitors to the British Industries Fair; whether he proposes to accept that recommendation; and whether he will consider its extension to include all visitors coming to the United Kingdom on business at any time of the year?
My attention has been drawn to the recommendation of the Chelmsford Committee, which His Majesty's Government are prepared to accept. I regret that it is not possible to adopt the suggestion contained in the last part of the right hon. Gentleman's question.
Is the right hon. Gentleman aware that these charges are a great source of irritation to persons coming to this country on business?
Yes, I have admitted that before.
Balkan Conference
asked the Secretary of State for Foreign Affairs whether he has received any communication or report with regard to the Balkan Conference recently held at Athens?
The conference published a full summary of its proceedings and the text of the resolutions which it adopted. I have received copies of these publications from His Majesty's Minister at Athens, and I am sending the hon. Member a copy of the summary. When I receive additional copies of the resolutions, I will send him one also.
Does not the right hon. Gentleman think, owing to the serious situation in the Balkans caused by the continued ill-treatment of minorities, that a movement of this kind deserves every possible support?
That hardly arises out of the question.
Russia
Labour Conditions
asked the Secretary of State for Foreign Affairs whether he can now state when the White Paper will be issued in relation to decrees concerning the abolition of unemployment benefit in Soviet Russia and kindred matters; and whether he has now received such information from the Soviet Ambassador that decrees relating to conscription of labour and the use of prisoners in concentration camps will also be included?
As regards the first part of the question, I would refer the right hon. Gentleman to my reply to the hon. and gallant Member for Maidstone (Commander Bellairs) on Monday last. The White Paper will not be restricted to unemployment legislation, but will include the principal ordinances regarding labour conditions generally in the Soviet Union. As regards the second part of the question, the right hon. Gentleman appears to be under some misapprehension. The Soviet Ambassador in London has at no time been consulted in connection with the White Paper.
Can the right hon. Gentleman indicate more definitely when we may anticipate this White Paper?
There has been no delay in the publication of the White Paper.
Will the right hon. Gentleman say whether a representative from the Embassy in Moscow or the British Government will be sent to the timber camps, especially in Archangel, in view of the sworn statements sent to the Prime Minister?
Answer!
On a point of Order. Cannot I have an answer to my supplementary question?
The hon. Member's supplementary question does not arise from the question on the Paper.
All-Union Council of Trades Unions
asked the Secretary of State for Foreign Affairs whether the all-union council of trades unions in Russia is under the supervision or control of the Soviet Government or the Third International?
The all-union council of trades unions is, I understand, represented in certain Government departments which deal with economic questions, such as the Commissariat of Labour, the Supreme Council of National Economy and the State Planning Committee. Until February, 1922, the trade unions performed a number of State functions and received State support. But since that time they appear to have recovered a certain degree of the independence attaching to a non-party organisation. The international organisation to which the Soviet trades unions are affiliated is the Red International of Labour Unions, which, while undoubtedly working in collaboration with the Third International, is a separate organisation. On the other hand, the all-union council of trades unions includes in its membership prominent officials of the Russian Communist party.
Is it not apparent that the excuse given by the Soviet Government was an evasion and a subterfuge?
Mr. Mander—
May I not ask a supplementary question?
Order!
We have had a very long and full reply.
Mine is quite a separate supplementary question.
If it is a separate question, it cannot be relevant to the question on the Paper.
Lena Goldfields, Limited (Arbitration Award)
asked the Secretary of State for Foreign Affairs whether he can now state generally the reply of the Soviet Government with reference to the arbitral award in favour of Lena Goldfields, Limited?
asked the Secretary of State for Foreign Affairs whether he has yet received the decision of the Soviet Government concerning the Lena Goldfields arbitration; and whether he has yet sent any reply?
asked the Secretary of State for Foreign Affairs whether he can now inform the House as to the reply of the Soviet Government to the representations made by His Majesty's Government with reference to the non-payment of the arbitral award to Lena Goldfields, Limited?
The reply of the Soviet Government has been received, and my Department is in communication with the company with regard to the present position and possible future developments. It would, therefore, be premature for me to make a statement on this case.
Having regard to the great public interest in this matter—
Are you a shareholder?
Order!
Is it in order for an hon. Member on the other side of the House to put a question to my right hon. Friend because he is raising this matter and ask him, "Are you a shareholder of this company"?
I do not like innuendoes from any quarter of the House.
As the individual who interjected the remark, may I say that the reply was that this matter was under consideration with the people who matter most, that is, the shareholders of this company, and, since the interest of the right hon. Gentleman in this matter is evidently great, I asked whether he was a shareholder.
Withdraw!
It is quite unnecessary for the hon. Member to intervene in the matter at all.
On a point of Order. Is not an hon. Member of this House perfectly in order in interjecting a perfectly logical interjection at any moment when an hon. Member is putting a question which is not pertinent to the matter before the House?
You have no qualifications, anyhow.
These interjections are hardly helpful and certainly not relevant.
May I just put my supplementary question, and, in doing so, say that I have no interest, private or otherwise, in this company? May I ask whether, as this matter has already been the subject of public proceedings, the right hon. Gentleman can state generally whether the reply is favourable inasmuch as an admission of liability has been made?
I am not at this moment prepared to add anything to what I have said. We are in communication with the party most directly affected—the company.
Arising out of my question, is not this a matter in which the public are concerned quite apart from the company; do they not want to know whether the Soviet Government have disclaimed liability or not?
I am not denying the public interest, but at the moment I am concerned with the interests of the company.
British Embassy, Moscow
asked the Secretary of State for Foreign Affairs whether a naval attaché has been appointed to Moscow?
As I informed the hon. Member for North Newcastle (Sir N. Grattan-Doyle) last Wednesday, there are no service attachés at Moscow.
Can the right hon. Gentleman give any reason why these attachés should not be appointed?
No, I do not know. I have already answered a similar question in the House.
Having regard to the fact that this is the greatest naval and military Power in Europe—
Order!
This is not the time to have a debate.
Propaganda
asked the Secretary of State for Foreign Affairs what organisations in the Union of Socialist Soviet Republics he regards as being under the direct or indirect control of the Soviet Government for the purpose of the latter's pledge to abstain from hostile propaganda, and does the Soviet Government accept responsibility for such control?
I do not consider it desirable to attempt to define and limit the application of the pledge in the manner suggested by the hon. Member. The question of the responsibility of the Soviet Government in respect of any alleged breach of the pledge should, in my judgment, always be considered by His Majesty's Government in the light of the circumstances attending the particular case.
Will the right hon. Gentleman say when he is going to take the House into his confidence, and explain the position between His Majesty's Government and the Soviet Republic with regard to these matters which remain in abeyance, in view of the fact, particularly, that the Prime Minister himself—
Speech!
asked the Secretary of State for Foreign Affairs if he will state whether any effort has been made by the Government to obtain the recasting in a more explicit form of the mutual pledge to abstain from propaganda, which was the condition on which diplomatic relations were renewed between Great Britain and Russia?
No action in the sense indicated has been taken by His Majesty's Government.
In view of the apparent difference of opinion between His Majesty's Government and the Government of the Soviet Union, does not the right hon. Gentleman think it advisable that some line of demarcation should be drawn as to what is and what is not propaganda against this country?
Can the right hon. Gentleman say whether the Soviet Government have made any complaints about the number of anti-Russion questions appearing on the Order Paper here?
That does not arise. Mr. Barr.
Question 17.
May I ask for a reply to my question?
The hon. Member cannot force an answer.
On a point of Order. My hon. and gallant Friend the Member for Dulwich (Sir F. Hall) asked a supplementary question and the Minister gave no indication that he was not willing to answer that question, but, before there was time to give an answer, another supplementary which you, Sir, ruled out of order, was asked. Meanwhile, the House has had no indication from the Minister that he is not willing to answer my hon. and gallant Friend's supplementary question.
On a point of Order. Is is not the case, Sir, that you had called on me to put Question No. 17, before this intervention.
This seems to me to be a storm in a tea-cup.
rose —
Answer!
I hope that hon. Members will allow questions to proceed.
On a point of Order. May I draw attention to the disorderly conduct of the hon. and gallant Member for Dulwich (Sir F. Hall).
I do not need my attention called to that.
British Export Credits Scheme
asked the Prime Minister whether, in view of the number of protests recently addressed by His Majesty's Government to the Soviet Government of Russia and the consequent risk of a strained relationship between the two countries, he will issue orders that the export credits guarantee scheme shall no longer operate in respect of exports to Russia?
I have been asked to reply. The relations between His Majesty's Government and the Government of the Union of Soviet Socialist Republics are not such as to call for any action such as that which the right hon. Gentleman proposes.
Is the right hon. Gentleman aware that, whereas in other countries this risk is spread over many thousands of accounts, if there is one single failure in Russia we lose £2,500,000?
Is it the fact that when this policy was pursued under the last Government strained relations were not improved by such action?
Questions
Egypt (British Forces)
asked the Secretary of State for Foreign Affairs whether he is prepared to advise the withdrawal of the British forces from Egypt?
The acceptance by Egypt of the recent proposals of His Majesty's Government for a Treaty of Alliance would have entailed the withdrawal of the British forces from the interior of Egypt. Pending the resumption of negotiations no such withdrawal is contemplated.
Will the right hon. Gentleman say whether the policy of the Government is not to assist in the establishment of a democratic constitution in Egypt; and whether he has had representations—
That does not arise out of the question.
Mexico (British Interests)
asked the Secretary of State for Foreign Affairs whether he has any information with regard to negotiations between the United States Government and the Mexican Government with regard to Mexico's external debts; and will he take steps to ensure that in any such negotiations the interests of British creditors are safeguarded?
I am not aware of any negotiations between the United States and Mexico in regard to the Mexican foreign debt, which formed the subject of an agreement concluded in July last between the Mexican Government and the International Committee of Bankers, on which both British and United States interests are represented. This agreement is at present awaiting consideration by the Mexican legislature.
In view of the very large British interests in Mexico, and the grave apprehension which exists concerning them, can the right hon. Gentleman say if those interests are being safeguarded?
I do not know that that question arises. I think British interests are safeguarded to the extent that they are being taken into consideration in the way that I have indicated.
German Reparations
asked the Secretary of State for Foreign Affairs what guarantee was given by Germany with regard to her obligations in carrying out the Young plan?
I would refer the hon. Member to the terms of the agreement signed by Germany at The Hague in January last (Cd. 3484), and in particular to Articles 1 and XIV of that agreement.
Does that mean that Germany will carry out the whole of the agreement, or are parts of the agreement dependent on the ability to carry out the first part?
I do not know that it is possible for me to say how much any Government will carry out an agreement.
Royal Navy
His Majesty's Ship "Suffolk" (Rescue)
asked the First Lord of the Admiralty if his attention has been called to the gallantry of the sailors of His Majesty's Ship "Suffolk" in rescuing the crew of 14 from the Swedish motor-ship "Hedwig," aground on the Pratas Reef; whether any recognition of the services rendered has been considered; and if he intends taking any action in the matter?
The "Hedwig," which is a Dutch registered vessel, had ridden over a reef and was lying in calm but very shallow water in the Pratas Lagoon. The "Suffolk" took up a position outside the reef opposite the "Hedwig," and lowered a motor boat and whaler which proceeded to cross the Lagoon. As visibility was poor the "Suffolk" made smoke to give the rescue boats a leading mark. The boats crossed the Lagoon but could not reach the wreck owing to the shallow water. The crew of the "Hedwig" abandoned ship on a raft and were transferred to the "Suffolk's" boats, which then returned to the ship and were safely hoisted in, although there was considerable sea and wind. The boats covered a total distance of 28 miles, mostly through coral reefs, in poor visibility and partly in rough sea, and the success of the rescue was entirely dependent on boat work. The appreciation of the Board of Admiralty of the good work performed by the Officer-in-Charge and the boat's crews has been conveyed to the Commander-in-Chief.
Is the First Lord prepared to recommend some kind of medal for these men for their services?
I think that any further consideration of the matter by the Admiralty must await a full written report of the circumstances. What I have stated to-day is based upon a telegraphed report.
Has the right hon. Gentleman the name of the officer commanding the boats?
I have received it, but I did not bring those particulars with me.
Temporary Clerks, Chatham and Woolwich
asked the First Lord of the Admiralty how many temporary clerks are borne in lieu of departmental clerical officers and writing assistants in the Naval Store Department, Chatham, and the Expense Accounts Department, Chatham?
In the Naval Store Department 23 "P" Class or temporary clerks are at present borne in lieu of clerks, third grade, or writing assistants, and in the Expense Accounts Department 11 "P" Class or temporary clerks are similarly borne in lieu of departmental clerks, third grade.
In view of the fact that the work is permanent why cannot these temporary clerks be promoted to the establishment?
I think my hon. Friend will appreciate that there has been considerable redundancy caused by reductions in staff and appointments from the departmental examination held in 1924. We are getting through that, and we hope now that there will be some appointments under these heads of "P" class clerks, writing assistants and typing staff, and a Committee is at present dealing with that matter.
asked the First Lord of the Admiralty how many third-grade clerks have been substituted by temporary clerks in the office of the Inspector of Naval Ordnance, Royal Arsenal, Woolwich, during the last five years?
Two temporary clerks have, during the last five years, been appointed to the office of the Inspector of Naval Ordnance, Woolwich, in posts provided in the ultimate complement for 3rd grade clerks. This is, however, a temporary arrangement which does not affect the authorised complement of 3rd grade clerks in the Department.
Can the hon. Gentleman explain why in case after case we find temporary staff employed on posts which are permanent, and is it not possible to promote them to the establishment and permanent grade?
The answer which I gave to a previous supplementary question covers that point. It is owing to the redundancy, and the wish to equalise the appointments for the various classes that are not dismissed, and we hope to be able to make other appointments from "P" class clerks very shortly.
Writing Assistant, Sheffield
asked the First Lord of the Admiralty whether his attention has been drawn to the fact that a writing assistant employed in the Admiralty inspection offices, Janson Street, Sheffield, is doing work proper to the third grade departmental clerical class; and whether he will take steps to secure that she is promoted to that class?
The writing assistant employed in the office of the Inspector of Naval Ordnance at Sheffield is employed mainly on registry duties. These duties are among those that are normally performed by the writing assistant grade. The lady in question will be considered for promotion to the departmental clerical class with others of her grade serving in Admiralty establishments, as vacancies occur. It may be mentioned, however, that she recently declined an opportunity of promotion to a departmental clerical class, as this promotion would have involved her transfer from Sheffield.
Mate Scheme
asked the First Lord of the Admiralty if he is yet in a position to state when the report of the committee set up to inquire into the working of the mate scheme will be ready?
The committee have not yet completed the task of taking evidence, and it is therefore not possible to say when the report will be ready.
Must this committee confine their findings to amendments to the present scheme, or have they liberty to make a report in favour of its complete supersession?
The committee understand that they have very wide terms of reference, and they will make what recommendations they think fit.
asked the First Lord of the Admiralty the ages, ranks and ratings of the promotions made under the mate scheme of 1st December last?
With my hon. and gallant Friend's permission, I will circulate the information in the OFFICIAL REPORT.
The information is as follows:
Rating and age on 1st December, 1930.
Leading seaman, 24 years 9 months.
Acting leading seaman, 23 years 6 months.
Able seaman, 23 years.
Able seaman, 22 years 10 months.
Able seaman, 23 years 1 month.
Able seaman, 22 years 11 months.
Royal Marines (Retired Officers)
asked the First Lord of the Admiralty if he will state, respectively, the conditions under which quartermasters, warrant and non-commissioned officers, and direct-entry officers on the retired list of the Royal Marines qualify for a step in rank; and, if the conditions vary, the reason therefor?
Warrant officers and non-commissioned officers of the Royal Marines on the retired or pension lists are not granted steps in rank. The regulations governing the grant of a step in rank to commissioned officers of the Royal Marines are shown on page 76 of the Supplement to the Navy List, a copy of which I am sending to my hon. and gallant Friend. It would be too complex a matter in reply to a question to go into detail as to the reasons for the differences which arise. When the present regulations were laid down in 1921, the governing considerations were to assimilate the regulations, on this subject, for the Royal Marines to those for the Royal Navy, subject to the proviso that retired officers should not have a higher rank than their contemporaries on the Active List.
Are quartermasters included in the regulations to which the right hon. Gentleman has referred?
Yes.
Oil Fuel
asked the First Lord of the Admiralty whether, in view of the results obtained from the experiments in the Royal Navy in the use of oil fuel produced from British coal, the purchase, at the present low market price, of suitable coal mines has been considered, as well as the erection of Government extracting and refining plant for obtaining oil fuel for the Fleet from British coal?
No such steps are contemplated.
Has the right hon. Gentleman considered the possible danger of depending on overseas supplies of oil fuel, when we have no alternative from our own national resources?
I have had that matter repeatedly before me. It is because of that and the general desire to help the coal industry that we have been pressing at the Admiralty along the lines of giving actual trials with samples of oil, but on the present economic basis it will be quite impossible for the Admiralty to purchase such oil to a large extent for Fleet requirements. We have to rely upon getting much better economic conditions of production than we have at present, but we are pressing forward.
Why is the suggestion in the question not contemplated, in view of the fact that it is a splendid opportunity of putting into operation the Socialist programme of the nationalisation of mines?
Petty-Officer's Widow (Pension)
asked the First Lord of the Admiralty whether he is aware that Petty-officer Charles E. Murrell, official No. C/J/57,064, His Majesty's Ship "Royal Oak," after 13 years' service in His Majesty's Navy, died from disease of the lungs contracted on board ship, and after one month's treatment on such ship; that his widow has been refused any pension; and whether he will reconsider the case?
Further consideration is being given to this case, and I will let the hon. Member know the result as soon as possible.
If the naval authorities find that they cannot grant a pension, will the widow be entitled to a civil pension?
I will answer that when we look into the other matter.
Personnel
asked the First Lord of the Admiralty whether, in view of the limitation of tonnage in the London Naval Treaty, it is the intention of the Admiralty to make any reduction in the personnel of the Royal Navy?
I would refer the Noble Lady to my reply of the 25th June (OFFICIAL REPORT, columns 1125-6) to the hon. and gallant Member for Londonderry (Major Ross).
Dockyard EmployéS
asked the First Lord of the Admiralty if established men in the Royal dockyards are regarded in all respects as civil servants; and, if not so regarded, in what respects they differ from civil servants?
The answer to the first part of the question is in the affirmative. The second part of the question does not therefore arise. It should be understood that there is no uniform set of conditions of service for civil servants.
asked the First Lord of the Admiralty if established men in the Royal dockyards have security of tenure from the date of establishment or if security of tenure is acquired under Admiralty Fleet Order 1368/24 as a consequence of deductions from pay of 1s. to 5s. per week?
The security of tenure enjoyed by established men is first acquired on the date of transfer to the established list.
Is it absolute security?
Subject to the ordinary conditions of the Civil Service. A civil servant has not security of tenure if he does things that are wrong.
Is the right hon. Gentleman aware that established men have been discharged?
Tropical Allowances
asked the First Lord of the Admiralty whether he will approve the payment of tropical allowance to seaman ratings of the China submarine flotilla under the conditions of Article 1,642 of the King's Regulations and Admiralty Instructions, observing that payment of this allowance is authorised to all engine-room ratings by this article while actually employed in the interiors of submarines, and that of a necessity all officers and ratings are, whilst on sea service in the submarine flotilla, employed in the interiors of the vessels and not the engine-room ratings only?
The whole question of tropical allowances is at present under consideration.
When is that consideration likely to be brought before our notice?
I am afraid that I cannot say.
Naval Design
asked the First Lord of the Admiralty whether, with a view to the avoidance of errors of constructional policy, he will appoint a committee on naval designs to study the situation and to recommend a naval programme?
In studying the question of naval design, the Board of Admiralty are in a position to bring to bear on the subject the most expert advice in the country. I am aware of no grounds on which the appointment of a special committee is desirable.
Battleships (Cinematograph Apparatus)
asked the First Lord of the Admiralty whether, in view of the intention of the British Admiralty to assist in the installation of talking-picture apparatus in British battleships, he will give an assurance that only British equipment manufactured by British companies, will be purchased?
The hon. and gallant Member is under a misapprehension as to the position of the Admiralty in this matter. I would refer him to the reply given to my hon. Friend the Member for Central Southwark (Mr. Day) on 10th December (OFFICIAL REPORT, cols. 382–3).
Is it not the case that four experimental sets have been put into battleships, and that two of them were put in by Americans and two by British firms; and will the hon. Gentleman give us a promise that, when the installation is done in bulk, the big order will be given to British firms in order to make work for British workmen?
Will the Admiralty bear part of the cost of the installation of the new apparatus?
I certainly cannot make a promise of that description. There is a misapprehension. The Admiralty do not bear the cost. It is borne out of canteen funds and by the officers.
Will the hon. Gentleman undertake to see that only British machines are installed?
Is the hon. Gentleman aware that British firms were not allowed to tender for the installation in the American Fleet?
What I am trying to convey to the hon. Member is that we cannot dictate to other people how they shall spend their money.
Unsuitable and Incompetent Men
asked the First Lord of the Admiralty whether there is any regulation, and, if so, its terms, which lays down the procedure to be adopted in the case of men found to be unsuitable or incompetent after entering the service; and whether it applies to mechanics and other engineering units?
The procedure relating to unsuitable or incompetent men will be found in Article 420, King's Regulations, 1926, and Volume II, 1929, a copy of which I will send to my hon. Friend. As will be seen, it is applicable to all naval ratings.
Meat Supplies
38 and 39.
asked the First Lord of the Admiralty (1) if he can say in what way his Department is encouraging the national mark scheme as regards British beef, mutton and pork;
(2) if he can give any figures showing the number of carcases of British beef and mutton consumed by the Navy during the past year; and if he can say how many had the national mark?
The great bulk of the meat purchased is frozen imported meat of Dominion origin and very little home-killed meat is taken for the naval service for reasons which have in the past been made clear to the House. The actual amounts were approximately 24,000 lbs. of beef and 1,600 lbs. of mutton. I am afraid I cannot say to what extent, if any, it has been found possible, to purchase national mark carcases.
Is the right hon. Gentleman satisfied with the amount of encouragement his Department is giving to British agriculture?
I think I have said in reply to another question that we do all we can in the way of encouraging Empire production.
Questions
Warships (Standard Displacement)
asked the First Lord of the Admiralty whether the Board is satisfied that calculations of aggregate tonnage of warships under the system of standard displacement agreed to in Article 6 of the Washington Treaty result in exact measurements for all countries?
asked the First Lord of the Admiralty whether, in view of the definition of standard displacement contained in the Treaty of Washington, Chapter II, Part IV, and confirmed in the London Naval Treaty, Article VI, which is so framed as to ensure that similar conditions must in all cases be observed in measuring the displacement of warships belonging to the signatories of the said treaties, he is satisfied that similar conditions to those observed in the British Navy in obtaining such measurements are observed in the navies of France, Italy, Japan, and the United States of America?
The Board of Admiralty are satisfied that the definition of standard displacement is so framed as to ensure as far as possible that similar conditions must in all cases be observed in measuring the displacement of warships of different nations. They are further satisfied that under these conditions the possible margin of variation in the calculations should be small.
35 and 36.
asked the First Lord of the Admiralty (1) whether he is aware that ex-German ships of equal displacement that were handed over to France and Italy are now returned by Italy as having a standard displacement 25 to 33 per cent, less than that of the French ships; and, in view of the fact that the published material particulars of armament, etc., correspond to those of the French ships, whether he can give the explanation of the discrepancies;
(2) whether, in view of the fact that by Article 8 of the Naval Treaty ships of under 600 tons are exempt from limitation, he can explain why the ex-Austrian "Dukla" class of 787 tons displacement now appear in the French Navy as 748 tons standard displacement, and in the Italian Navy as 555 tons, 558 tons, and 568 tons, respectively?
The Board of Admiralty are aware that, with regard to the ex-German and ex-Austrian ships now belonging to France and Italy, there are certain cases in which ships originally of the same class are now shown as of differing displacements. No information which would explain these differences is available, but it should be observed that up to the present these particular vessels are not included in any Treaty limitation. It may also be remarked that the vessels concerned are either over age or will shortly become so.
Does not that suggest that Italy has a different system of reckoning standard displacement? On that she is getting a reputation for warship building which is leading to many losses of orders for warship building in this country—if the system is wrong.
It is difficult to answer that point, but I will put it this way: There is no agreement yet between France and Italy as to these particular categories of ships, and, if an agreement is arrived at and if they adhere to Part III of the London Naval Treaty, I can only say that I have no reason to doubt that all parties to such an agreement will abide by it.
In view of the importance of getting the same standard of measurements for displacement, having regard to the recent London Treaty, will the right hon. Gentleman make representations to the French and Italian Governments with the object of securing that the measurements in all cases are, in fact, the same?
We have no reason to doubt, up to the present, that any Treaty obligations entered into have not been fulfilled, and until these particular ships are covered by a Treaty I do not think it would be wise to raise the matter.
Haifa-Bagdad Railway (Survey)
asked the Under-Secretary of State for the Colonies whether, in conjunction with the proposed survey for the construction of a railway from Haifa to Bagdad, he will also consider the desirability of a road engineer being asked to report on the comparative cost of an all-weather road?
The survey is now in progress and is being carried out as expeditiously as possible. The funds available are sufficient only for the purpose for which the survey has been undertaken, and it would not be practicable to enlarge its scope.
Does not the hon. Member think it is very undesirable to omit an examination of the possibilities of constructing a road?
It is not thought that the additional expenditure involved would be justified; and I am sure that with the hon. and gallant Member's zeal for economy he will appreciate that reason.
Is it not a fact that motor traffic is in many cases being substituted for rail traffic, even where a railway has already been built; and is it not better that the road possibilities should be examined, and possible economies effected in that way, before building a railway which may be rendered obsolete by the roads?
This is not a very hopeful case. Six hundred miles of motor road without any prospect of intermediate traffic is not a very good proposition.
Haifa Harbour (Labour Conditions)
asked the Under secretary of State for the Colonies whether the fair wages and fair condi- tions of labour in force at the Haifa harbour construction and other works, executed under the Palestine and East African Loan Act, apply equally to men and women?
I have no reports on the employment of women on these works, but I know of no reason why the provisions in question should not apply to all workers irrespective of sex.
Will the hon. Gentleman be kind enough to make inquiries on that point?
I shall be very glad to investigate any specific point which is brought to my notice.
Are there any women employed there at all?
I have been over the works recently and I never saw any women. It is possible that there may be some women engaged in office work and that I did not see them.
asked the Under-Secretary of State for the Colonies whether he is aware of the fact that the High Commissioner for Palestine has issued instructions to the effect that in future no work on the Haifa Harbour construction should be carried on on Sundays; and, seeing that Moslems and Jews would thus be compelled to work on their respective Sabbaths, what steps does he intend to take in the matter?
I am aware that such an instruction in respect of the Athlit Quarry has been reported. My Noble Friend is awaiting a report from the High Commissioner, on the receipt of which the matter will be fully considered.
Is it not a very good compromise, seeing that, if Friday were a holiday, the Jews would object, and, if Saturday were a holiday, the Arabs would object, and by giving Sunday as a holiday, nobody would object?
Kenya
Loan
asked the Under-Secretary of State for the Colonies if, as it is the policy of the Government to encourage local residents in Crown Colonies to subscribe to the loans issued by the Crown agents for those Colonies, he will state what specific arrangements were made to that end in respect of the issue of the recent Kenya loan and the result of those arrangements?
In the case of the recent issue of £3,400,000 Kenya 4½ per cent. stock, at the request of the Government of Kenya £50,000 was reserved by the Crown agents for the Colonies for local subscriptions. The Government of Kenya were asked to telegraph the total of the actual subscriptions not later than the morning of the second day after the final date for the closing of the lists in London. The amount received was £2,700.
Is the hon. Member aware that this unsatisfactory result is due to the fact that insufficient time was given for local subscriptions to be sent in?
I believe about two more days were allowed in Kenya than were available for people in London, and it was not found possible, in the circumstances, to give any more time.
Estimates
asked the Under-Secretary of State for the Colonies whether it is the intention of the Secretary of State to withhold his final approval to the draft Estimates for 1931, submitted by the Government of Kenya, until he has satisfied himself that they conform to the conditions laid down in the Memorandum on Native Policy in East Africa?
When the Kenya Government submit to my Noble Friend the Estimates for 1931 for approval, he will certainly examine the Estimates in the light of the Memorandum on Native Policy in East Africa, and he anticipates that in forwarding the Estimates the Acting Governor will furnish certain statements in regard to expenditure upon native services and money raised from the native population, which will assist in this examination.
May I ask if the draft Estimates to which the hon. Member refers have not already been received?
No, Sir. They have been received in their first form, but not in their final form.
Questions
Hong Kong (Gaol)
asked the Under-Secretary of State for the Colonies whether he has any information as to the conditions in Hong Kong gaol and the present methods of feeding, housing, and classifying the prisoners; what arrangements are made for differentiating between the prisoners who have been convicted and those on remand; and whether any improvements have been made recently?
The regulations for the management of the Hong Kong gaol are contained in the Prison Rules made under Ordinance No. 4 of 1899. Full particulars as to prisoners, their classification and their diets are given in the Hong Kong Blue Book, a copy of which is being put in the Library. It is therein stated that convicted and unconvicted prisoners are separated as far as possible. The gaol is at present overcrowded, and it is proposed to build a new one as soon as financial conditions permit.
Iraq (Currency Board)
asked the Under-Secretary of State for the Colonies whether any decision has yet been arrived at in regard to the establishment of an Iraq currency board; what will be its constitution and duties; where will its offices be situated; and what national currency is it proposed to employ?
No decision has yet been reached in this matter. I am therefore not in a position to reply on the points of detail raised in the latter part of the question.
Imam of the Yemen (Negotiations)
asked the Under-Secretary of State for the Colonies what is the present state of the negotiations with the Imam of Yemen; what foreign countries have recognised the Imam and have diplomatic or Consular representatives at Sanaa; what provisions are made for looking after British interests in the Yemen and encouraging British trade; and whether the boundary between the territory of the Imam and the Aden Protectorate is being maintained by force or by agreement?
The relations of His Majesty's Government with the Imam of the Yemen have not changed since I replied on the 9th July to a similar question put by the hon. Member. The Imam has not replied to the communication foreshadowed in my previous reply which has been addressed to him by the Resident at Aden. As regards the second part of the question, so far as I am aware the countries which have recognised the Imam are Italy, Germany and the Soviet Union, but none of these Powers has a regular diplomatic or Consular representative at Sanaa.
In regard to the third part, the hon. Member will no doubt realise that, as matters at present stand between His Majesty's Government and the Imam, the former can have no acceredited representative in the Yemen.
The answer to the last part is that, while the Imam has not yet formally recognised the boundary laid down by the pre-War Convention with Turkey, he has not recently challenged the existing situation.
North Charterland Exploration Company (Inquiry)
asked the Under-Secretary of State for the Colonies whether any decision has yet been reached with regard to the request of the North Charterland Exploration Company that a public inquiry should be held into the circumstances under which an agreemnt was entered into between the Colonial Office and the British South Africa Company?
The position is still as stated in my reply of the 3rd of this month to the hon. Member for Moray and Nairn (Mr. Stuart), of which I am sending the hon. and gallant Member a copy.
In view of the statement made by this company, will the hon. Gentleman expedite a decision?
The matter is being expedited as much as possible, but, as the hon. and gallant Member is aware, it is a very difficult and complicated subject. However, a decision will certainly be reached as soon as possible.
If it is only a question of the difference between what the British South Africa Company assume as their rights and what the North Charterland Exploration Company assume, cannot the matter be settled as soon as possible?
I would prefer not to express an opinion as to what the actual point is. At any rate, it is rather a difficult subject, and, as I say, a decision is being expedited as much as possible.
Aviation
Director-General of Civil Aviation
asked the Under-Secretary of State for Air whether an appointment has yet been made to the position of Director-General of Civil Aviation, and what the present position is?
I hope that an announcement with regard to this appointment will be made very shortly, but I am not, I regret, in a position to make any announcement to-day.
Is the hon. Gentleman able to say that it is definitely proposed to fill up this position?
Certainly.
Aerodromes
asked the Under-Secretary of State for Air the number of civil and Royal Air Force aerodromes in use at the present time and the estimated number of civil aerodromes that will be completed and ready for use by the 31st December, 1931?
At present there are 129 licensed civil aerodromes of all kinds in Great Britain and Northern Ireland. There are also 50 Royal Air Force aero- dromes, making 179 in all. No estimate can usefully be given as to the number of aerodromes that will be licensed between now and the end of 1931, particularly as some of the less important aerodromes are only open for part of the year; but there will, I hope, be a substantial increase.
In view of the fact that the development of civil aviation and of the air-mindedness of our people depend largely on adequate ground organisation, will the hon. Gentleman again press upon backward local authorities the importance of providing aerodromes and landing grounds at an early date?
That is being constantly done, I can assure the hon. and gallant Member.
Can the hon. Gentleman say if all war aerodromes have now been re-absorbed by the Air Force?
I should like notice of that question.
Will my hon. Friend publish a White Paper giving a list of these aerodromes?
Perhaps my hon. Friend will put down a question.
Air Services (Cairo to Cape Town)
asked the Under-Secretary of State for Air the present position of the negotiations for the purpose of establishing a regular air-mail route between Cairo and the Cape of Good Hope; and when it is expected that this will be in full operation?
The negotiations have been completed and the agreement signed. The ground organisation is being developed with all possible speed, and it is expected that the northern section of the route, as far as Mwanza, in Tanganyika territory, will be in operation at the end of February, and the through service to Cape Town as soon as possible thereafter.
Is it intended to do any night flying?
The whole question of night flying is under consideration.
Schneider Trophy Race
asked the Under-Secretary of State for Air, if the Schneider trophy race is to take place in England next year; and, if so, where it is to be held, on what date, and if it will receive the support of His Majesty's Government?
Under the rules of the contest, if the Royal Aero Club defend the Schneider Trophy, the race would be held in this country next year, at a time and place to be decided upon later. The question of the support which can be given to the Royal Aero Club by His Majesty's Government is now under consideration.
asked the Under-Secretary of State for Air whether Royal Air Force pilots will be permitted to take part in next year's Schneider trophy race?
In the light of recent discussions with the Royal Aero Club, this and other questions in connection with the Schneider Trophy contest are under consideration, but no decision has as yet been reached. I am sorry not to be able to give the hon. Member a more definite reply.
Will the hon. Gentleman assure the House that during the Recess no decision will be taken by the Air Ministry which will virtually preclude this country taking any part in the Schneider Trophy race next year, until this House has had an opportunity of discussing the question?
I am afraid I could not give an undertaking of that kind.
Has the hon. Gentleman any idea when he will be able to give the decision?
I expect the decision will be made very shortly. In my reply last Wednesday, I indicated that it might be possible to give that reply to-day, but within a very short time the matter will be settled.
Airship R.101 (Dependants' Pensions)
asked the Under secretary of State for Air if he has yet made any inquiry into the pensions paid to the dependants of those who lost their lives in R.101: and what action he pro- poses to take to remove existing anomalies?
The whole question of the pensions payable to these dependants has been most carefully and sympathetically considered throughout, and my Noble Friend is satisfied that the differences between the awards which have been made are no more than were inevitable in the circumstances. Such differences arise out of the varying terms of service and do not constitute an injustice, and it is not proposed to take any action with a view to a revision of the awards.
Are we to understand that the Ministry consider that there are no anomalies among these pensions?
No. The hon. Member is not to understand that we regard the position as one without anomalies, but the anomalies arise from causes which I have indicated, that is to say, the nature of the service.
Can the Ministry do nothing to remove these anomalies and injustices?
I think I can quite reasonably claim that the Ministry has been as generous as it possibly could have been in this matter. We have been very much concerned with regard to these dependants, but it is impossible, of course, to interfere with the King's Regulations. So far as certain cases are concerned, there is the Royal Air Force Memorial Fund.
I beg to give notice that I shall call attention to this matter on the Motion for the Adjournment on Friday.
Aircraft (Orders)
asked the Under-Secretary of State for Air whether he will give particulars of the orders for 250 aircraft of a new type recently placed by his Department?
No such orders have been placed. The recent Press statements that such orders have been given are not correct.
Petrol from Coal
asked the Under-Secretary of State for Air whether experiments have been car- ried out with petrol produced from British coal in the Royal Air Force; if so, to what extent and with what results?
Laboratory and preliminary engine tests have been made on samples of petrol produced from British coal by two independent processes, with satisfactory results. The fuel is now being tested for stability under storage conditions such as would be encountered if it were adopted for general use in the Royal Air Force.
Has not this petrol been used in actual flying?
I think not. It has been used in regard to engine tests, and the whole thing, of course, at present is in the laboratory stage.
Can my hon. Friend assure me that this matter is being pressed on with his usual energy?
Certainly.
Accident, Meopham
asked the Under-Secretary of State for Air what steps have been taken to enable relatives of deceased persons to examine witnesses and secure satisfactory evidence as to the cause of the disaster to the German monoplane at Meopham?
I would refer the hon. Member to the reply given to the hon. and gallant Member for the Isle of Thanet (Captain Balfour) on 10th December, to which my Noble Friend has at present nothing to add.
Transport
Road and Improvement Schemes, Cumberland
asked the Minister of Transport what number of road construction and improvement schemes have been sanctioned since July, 1929, in the county of Cumberland and what is their estimated cost; and how many of them have actually been started and what is their cost?
Since 1st July, 1929, 23 improvement schemes on classified roads and bridges in the county of Cumberland have been approved for grants from the Road Fund, at an estimated cost of £245,000. Of these, seven schemes estimated to cost £9,000 have been completed, and on the 28th November, 1930, 10 others estimated to cost £230,000 were in progress.
Can my hon. Friend say how many persons have been employed on these schemes from the Cumberland Employment Exchanges?
No. The House must face the face that we have sometimes to choose between collecting statistics and getting on with the work. We prefer to get on with the work.
Manchester-Liverpool Road
asked the Minister of Transport if he is aware that in the construction of the new Manchester-Liverpool road many of the roads previously used by vehicles and pedestrians are being stopped without any notice or warning being given; and will he give instructions that due notice is given before such roads are stopped?
I am informed that the only road which has been closed is that known as Longborough Lane, which will be absorbed in the new road, and that in closing the road, the county council followed the procedure laid down in Section 47 of the Road Traffic Act, 1930.
London Traffic
asked the Minister of Transport if he intends to set up a Select Committee to inquire into, and report on, his proposals for consolidating London traffic?
No, Sir; I hope to present a Bill embodying the Government's proposals on this subject to the House after it reassembles early next year.
Canals (Development)
asked the Minister of Transport if he has had any request for assistance for canal development other than that received from the Grand Union Canal Company?
I would refer the hon. and gallant Member to the reply which I gave to the hon. and gallant Member for King's Norton (Major Thomas) on 5th November, of which I am sending him a copy. Apart from the three cases there mentioned, a grant has been made by the Unemployment Grants Committee towards a £7,000 scheme for reconstruction of towing path walls on the River Lee. A grant was offered to a canal undertaking for lock and other improvements, but the authority was unable to proceed with the works. An application by another undertaking for a guarantee in connection with acquisition of certain craft was not approved.
Have any special conditions been made as to the labour to be used on these schemes?
I cannot say with regard to these schemes unless notice is given.
asked the Minister of Transport what conditions were attached to the grant of £881,000 to the Grand Union Canal Company for development purposes; how many unemployed men is it hoped to utilise on this scheme; how many unemployed men are at present at work on this scheme; how many will be employed in 1931; and from what areas will they be drawn?
The Development (Public Utility) Advisory Committee have intimated to the Grand Union Canal Company their readiness, so soon as the company has obtained the necessary statutory powers, to recommend to the Treasury a grant under the Development (Loan Guarantees and Grants) Act, 1929, with a present value equivalent approximately to £225,000, in respect of works estimated to cost £881,000; and a Bill seeking powers to enable the company to proceed has been deposited. It has been agreed that, of the unskilled labour employed, a proportion, to be settled with the Ministry of Labour, shall be drawn from the depressed mining areas. I understand that some part of the scheme, for which the company need no further powers, is already in hand.
Have any arrangements been made for housing the men who will be brought down on these jobs?
I have no doubt that that will be done.
Carmarthen (New Bridge)
asked the Minister of Transport if a decision has been taken on the new bridge at Carmarthen; and, if so, when is it proposed that work should commence?
A grant towards the cost of a new high-level bridge has been offered to the Carmarthen County Council, subject to the approval of the final details of the scheme. I am advised that the county council are instructing a firm of consulting engineers with regard to the preparation of plans, and that it is hoped to commence the works before the 31st March next.
Road Scheme, Island of Bute
asked the Minister of Transport whether he has given his sanction to the proposal for the construction or the survey of the land for the construction of a road round the north end of the Island of Bute; where this road will lead to; how many dwellings will be served by it; and what the estimated cost of its construction will be?
I have agreed to make a grant from the Road Fund towards the cost of the survey. The proposed route extends from Kames Castle Lodge, Port Ballantyne, to a point in Ettrick Bay near Cranslag-vourity, and follows the northern coast line via Rhubodach and Kilmichael. I have no information at the present time as to the number of dwellings which would be served by the new road. The cost of construction is estimated by the County Council at from £120,000 to £160,000.
Before sanctioning the actual road construction, will the Minister make sure that an adequate service has been established between that part of the island and the mainland?
I will take that point into consideration.
Traffic Commissioners (Yorkshire and Eastern Areas)
asked the Minister of Transport whether he is now in a position to announce the appoint- ment of the chairmen of the traffic commissioners for the Yorkshire and Eastern areas?
To the Yorkshire area I have appointed Mr. J. Farndale, C.B.E., at present Chief Constable of Bradford. Sir Haviland Hiley, K.B.E., whose appointment I announced on the 10th December, will be the chairman in the Eastern area.
Can my hon. Friend say if Mr. Farndale is a Yorkshireman?
Yes, Sir.
Does he speak the Yorkshire language?
Road Materials (Kerb-Stone)
asked the Minister of Transport if he is aware that a large order for kerb-stone has recently been placed with Norway; and if he will inquire why the order was not placed in this country?
I have no knowledge of any large order for kerb-stone recently placed with Norway. If, however, the hon. Member would be good enough to furnish me with details of the case he has in mind, I will cause inquiries to be made into the matter, if it is one which comes within the purview of ray Department.
Railway Improvement Schemes (Government Grant)
asked the Minister of Transport whether action has been taken on the recommendation of the First Report of the Standing Committee on Mineral Transport that financial assistance should be given by the Government to approved schemes designed to further the use of 20-ton wagons by the provision of improved terminal facilities at collieries and private sidings?
I am glad to announce that, as the result of conferences with the railway companies, the Mining Association and National Federation of Iron and Steel Manufacturers, a scheme has been approved under which the railway companies are now prepared, in approved cases, to carry out these works of improvement by arrangement with the traders with the assistance of grants under Part I of the Development (Loan Guarantees and Grants) Act, 1929. The Government grants will be on scales similar to those already accorded to schemes for provision of like terminal facilities at ports, and will have a present value equivalent approximately to 30 per cent. of the cost of the works. The whole benefit of the Government grant will be passed on to the traders by the railway companies, who have, moreover, agreed to provide the finance of the scheme in the first instance, subject to repayment by the trader within a period of 15 years with interest at 5½ per cent. The railway companies are prepared to consider forthwith, subject to their own financial limitations, applications under this scheme from owners of colliery or other private sidings.
Is the Minister prepared to make these national grants dependent upon the condition that the wage standards shall not be depressed below the low minimum of £2 per week?
The Government, in pursuing their unemployment policy, are anxious to put work in hand in all cases as soon as possible. It is perfectly obvious that my hon. Friend's suggestion would lead to interminable delays, and reduce the amount of work put in hand.
Is not the policy of wage reductions the most substantial factor in creating unemployment?
That is not a question for me.
Questions
Ashtead Common (Electricity Pylons)
asked the Minister of Transport whether his attention has been called to the intention of the Central Electricity Board to erect pylons to carry an electric line across Ashstead Common; whether he is aware that the common not only offers amenities to many visitors, but is also a recreation ground for thousands of children; and whether, in view of the fact that the common is a recreation ground within the meaning of the Act of 1919, and that the distance involved is only about 400 yards, he will approach the Central Electricity Board with a view to having the line laid underground?
My attention has been called to this matter. The question whether any land is a pleasure ground within the meaning of Section 22 of the Act to which the hon. and gallant Member refers would only come within my purview in the event of an application being made for my consent to a compulsory wayleave, and in the circumstances I am not in a position to intervene.
Would the hon. Gentleman be open to receive representations from interested local parties on this matter?
A certain procedure is laid down for these matters under the Electricity Act, and I am afraid I have now no power to intervene.
Cotton Industry (Wages Dispute)
( by Private Notice ) asked the Minister of Labour whether she is aware of the decision of the Cotton Spinners' and Manufacturers' Association to post notices this week-end of their intention to bring into operation a new list of wages introducing a morelooms-per-weaver system; whether she is aware that the Weavers' Amalgamation have refused to accept the revised list; and, in view of the grave danger of a stoppage of the industry on 5th January, does she intend to take any action in the matter?
My right hon. Friend is aware of the position to which the hon. Member refers. At the present moment she does not wish to make any comment on that position, except to express the hope that the parties will yet be able to reach an amicable settlement satisfactory to both sides.
In view of the fact that the Home Secretary and the President of the Board of Trade have had this matter under review during their recent visits to Manchester, could the hon. Gentleman say whether he hopes that some helpful and practical result will come from the activities of these two Cabinet Ministers?
No, Sir; I think that any further comment on the situation at the present moment would be harmful rather than helpful.
Questions to Ministers
On a point of Order. May I, Mr. Speaker, call your attention to, and protest against, the discourtesy of the Foreign Minister in refusing to answer a supplementary question?
May I ask your guidance, Sir? A practice is growing up of certain hon. Members opposite putting questions which are out of order—[ Interruption ].
Withdraw!
I frankly admit that it is not a monopoly of the other side to put questions that are out of order. A habit has grown up with certain hon. Members opposite of putting supplementary questions which are out of order and which have the effect of blocking answers to questions which are in order and to which, I believe, it is in the interests of the House and in the public interest that an answer should be given if the Minister is willing to give it. If that habit is to continue to grow in the way it is doing at present, it can only lead to reprisals from this side of the House and will undoubtedly bring the proceedings of the House to a standstill. I wish to ask your guidance in the matter, Sir, as to whether Members who ask supplementary questions which Ministers are prepared or able to answer should not be given a fair opportunity of receiving an answer.
Was not the question addressed just now to you, Sir, a reflection on the competence of the Chair?
I made no reflection on the Chair. The criticism I made was of the Foreign Secretary.
I have already told the hon. Member that no point of Order arises. As regards the other point, have often expressed the view in this House that, when one Member has asked a supplementary question, it had better be answered before another Member asks another. With regard to the orderliness or otherwise of questions, I think I had better judge each case on its merits rather than say beforehand whether it is out of order or not.
Business of the House
May I ask the Leader of the House what business he proposes to take to-night?
The Government propose to proceed with the first three Orders of the Day, that is to say, the Expiring Laws Continuance Bill, Consideration of Lords Amendments; the National Health Insurance (Prolongation of Insurance) Bill, Second Reading—and, as I believe there is a general desire in the House that we
should get this Bill before the Recess, I hope that under the second Motion which stands on the Paper in the name of the Prime Minister we shall be able to proceed with all stages of the Bill—and Supply, Report (16th December).
Is it not intended to proceed with the Education (School Attendance) Bill this evening?
I think that the Orders I have mentioned will take up all the available time.
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)."—[ Mr. A. Henderson .]
The House divided: Ayes, 267; Noes, 157.
Division No. 82.] AYES. [3.54 p.m. Adamson, Rt. Hon. W. (Fife, West) Denman, Hon. R. D. Jenkins, W. (Glamorgan, Neath) Adamson, w. M. (Staff., Cannock) Dudgeon, Major C. R. John, William (Rhondda, West) Addison, Rt. Hon. Dr. Christopher Dukes, C. Johnston, Thomas Aitchison, Rt. Hon. Craigie M. Duncan, Charles Jones, F. Llewellyn- (Flint) Alexander, Rt. Hon. A. V. (Hillsbro') Ede, James Chuter Jones, Henry Haydn (Merioneth) Alpass, J. H. Edge, Sir William Jones, J. J. (West Ham, Silvertown) Ammon, Charles George Edmunds, J. E Jones, Rt. Hon. Leif (Camborne) Angell, Norman Edwards, C. (Monmouth, Bedwellty) Jones, Morgan (Caerphilly) Arnott, John Edwards, E. (Morpeth) Jones, T. I. Mardy (Pontypridd) Aske, Sir Robert Egan, W. H. Jowett, Rt. Hon. F. W Attlee, Clement Richard Elmley, Viscount Jowitt, Sir W. A. (Preston) Ayles, Walter England, Colonel A. Kelly, W. T. Baker, John (Wolverhampton, Bilston) Freeman, Peter Kennedy, Thomas Baldwin, Oliver (Dudley) Gardner, B. W. (West Ham, Upton) Kenworthy, Lt.-Com. Hon. Joseph M. Barnes, Alfred John Gardner, J. P. (Hammersmith, N.) Kinley, J. Barr, James George, Major G. Lloyd (Pembroke) Knight, Holford Batey, Joseph Gibson, H. M. (Lancs, Mossley) Lambert, Rt. Hon. George (S. Molton) Bellamy, Albert Gill, T. H. Lansbury, Rt. Hon. George Benn, Rt. Hon. Wedgwood Glassey, A. E. Lathan, G. Bennett, William (Battersea, South) Gossling, A. G. Law, Albert (Bolton) Benson, G. Gould, F. Law, A. (Rossendale) Bentham, Dr. Ethel Graham, Rt. Hon. Wm. (Edin., Cent.) Lawrence, Susan Bowen, J. W. Granville, E. Lawson, John James Bowerman, Rt. Hon. Charles W. Greenwood, Rt. Hon. A. (Colne) Lawther, W. (Barnard Castle) Broad, Francis Alfred Grenfell, D. R. (Glamorgan) Leach, W. Brockway, A. Fenner Griffith, F. Kingsley (Middlesbro' W.) Lee, Frank (Derby, N. E.) Bromfield, William Griffiths, T. (Monmouth, Pontypool) Lee, Jennie (Lanark, Northern) Bromley, J. Groves, Thomas E. Lees, J. Brooke, W. Grundy, Thomas W. Lloyd, C. Ellis Brothers, M. Hall, G. H. (Merthyr Tydvil) Logan, David Gilbert Brown, Ernest (Leith) Hall, J. H. (Whitechapel) Longbottom, A. W. Brown, Rt. Hon. J. (South Ayrshire) Hall, Capt. W. G. (Portsmouth, C.) Longden, F. Brown, W. J. (Wolverhampton, West) Hamilton, Mary Agnes (Blackburn) Lovat-Fraser, J. A. Burgess, F. G. Hardie, George D. Lowth, Thomas Buxton, C. R. (Yorks. W. R. Elland) Harris, Percy A. Lunn, William Cape, Thomas Hartshorn, Rt. Hon. Vernon Macdonald, Gordon (Ince) Carter, W. (St. Pancras, S. W.) Hastings, Dr. Somerville MacDonald, Rt. Hon. J. R. (Seaham) Chater, Daniel Haycock, A. W. MacDonald, Malcolm (Bassetlaw) Church, Major A. G. Hayday, Arthur McElwee, A. Cluse, W. S. Henderson, Rt. Hon. A. (Burnley) McKinlay, A. Clynes, Rt. Hon. John R. Henderson, W. W. (Middx., Enfield) Maclean, Sir Donald (Cornwall, N.) Cocks, Frederick Seymour Herriotts, J. Maclean, Nell (Glasgow, Govan) Compton, Joseph Hirst, G. H. (York, W. R., Wentworth) Macpherson, Rt. Hon. James I. Cove, William G. Hirst, W. (Bradford, South) McShane, John James Cowan, D. M. Hoffman, P. C. Malone, C. L'Estrange (N'thampton) Daggar, George Hopkin, Daniel Mander, Geoffrey le M. Dallas, George Hore-Bellsha, Leslie Mansfield, W. Dalton, Hugh Horrabin, J. F. Marcus, M. Davies, Rhys John (Westhoughton) Hudson, James H. (Huddersfield) Markham, S. F. Day, Harry Isaacs, George Marley, J. Marshall, Fred Riley, Ben (Dewsbury) Strauss, G. R. Mathers, George Riley, F. F. (Stockton-on-Tees) Sutton, J. E. Matters, L. W. Ritson, J. Taylor, R. A. (Lincoln) Maxton, James Robinson, Sir T. (Lancs, Stretford) Taylor, W. B. (Norfolk, S. W.) Messer, Fred Romeril, H. G. Thorne, W. (West Ham. Plaistow) Milner, Major J. Rosbotham, D. S. T. Thurtle, Ernest Montague, Frederick Rothschild, J. de Tillett, Ben Morley, Ralph Rowson, Guy Tinker, John Joseph Morris, Rhys Hopkins Salter, Dr. Alfred Tout, W. J. Morris-Jones, Dr. J. H. (Denbigh) Samuel, Rt. Hon. Sir H. (Darwen) Townend, A. E. Morrison, Herbert (Hackney, South) Sanders, W. S. Trevelyan, Rt. Hon. Sir Charles Morrison, Robert C. (Tottenham, N.) Sandham, E. Vaughan, D. J. Mort, D. L. Sawyer, G. F. Viant, S. P. Moses, J. J. H. Scott, James Walkden, A. G. Mosley, Lady C. (Stoke-on-Trent) Sexton, James Walker, J. Mosley, Sir Oswald (Smethwick) Shakespeare, Geoffrey H. Wallace, H. W. Muff, G. Shaw, Rt. Hon. Thomas (Preston) Wallhead, Richard C. Naylor, T. E. Shepherd, Arthur Lewis Walters, Rt. Hon. Sir J. Tudor Noel Baker, P. J. Sherwood, G. H. Watkins, F. C. Noel-Buxton, Baroness (Norfolk, N.) Shield, George William Watson, W. M. (Dunfermline) Oliver, George Harold (Ilkeston) Shiels, Dr. Drummond Wellock, Wilfred Oliver, P. M. (Man., Blackley) Shillaker, J. F. Welsh, James (Paisley) Owen, Major G. (Carnarvon) Shinwell, E. West, F. R. Paling, Wilfrid Short, Alfred (Wednesbury) Westwood, Joseph Palmer, E. T. Simmons, C. J. White, H. G. Parkinson, John Allen (Wigan) Simon, E. D. (Manch'ter, Withington) Whiteley, Wilfrid (Birm., Ladywood) Perry, S. F. Sinkinson, George Whiteley, William (Blaydon) Peters, Dr. Sidney John Sitch, Charles H. Wilkinson, Ellen C. Pethick-Lawrence, F. W. Smith, Ben (Bermondsey, Rotherhithe) Williams, David (Swansea, East) Phillips, Dr. Marion Smith, Frank (Nuneaton) Williams Dr. J. H. (Llanelly) Picton-Turbervill, Edith Smith, H. B. Lees- (Keighley) Williams, T. (York, Don Valley) Pole, Major D. G. Smith, Rennle (Penlstone) Wilson, C. H. (Sheffield, Attercliffe) Price, M. P. Smith, Tom (Pontefract) Wilson, J. (Oldham) Pybus, Percy John Smith, W. R. (Norwich) Wilson, R. J. (Jarrow) Quibell, D. J. K. Snell, Harry Winterton, G. E. (Leicester, Loughb'gh) Ramsay, T. B. Wilson Snowden, Rt. Hon. Philip Wise, E. F. Rathbone, Eleanor Snowden, Thomas (Accrington) Wood, Major McKenzie (Banff) Raynes, W. R. Sorensen, R. Richards, R. Stamford, Thomas W. TELLERS FOR THE AYES. —— Richardson, R. (Houghton-le-Spring) Strachey, E. J. St. Loe Mr. T. Henderson and Mr. Hayes.
NOES. Acland-Troyte, Lieut.-Colonel Crichton-Stuart, Lord C. Hudson, Capt. A. U. M. (Hackney, N.) Albery, Irving James Croft, Brigadier-General Sir H. Hurd, Percy A. Amery, Rt. Hon. Leopold C. M. S. Crookshank, Cpt. H. (Lindsey, Gainsbro) Iveagh, Countess of Astor, Maj. Hon. John J. (Kent, Dover) Cunliffe-Lister, Rt. Hon. Sir Philip Knox, Sir Alfred Astor, Viscountess Dalkeith, Earl of Lamb, Sir J. Q Atholl, Duchess of Davies, Maj. Geo. F. (Somerset, Yeovil) Lane Fox, Col. Rt. Hon. George R. Baillie-Hamilton, Hon. Charles W. Davison, Sir W. H. (Kensington, S.) Leighton, Major B. E. P. Baldwin, Rt. Hon. Stanley (Bewdley) Dixon, Captain Rt. Hon. Herbert Lewis, Oswald (Colchester) Beamish, Rear-Admiral T. P. H. Duckworth, G. A. V. Locker-Lampson, Rt. Hon. Godfrey Beaumont, M. W. Dugdale, Capt. T. L. Macdonald, Capt. P. D. (I. of W.) Bellairs, Commander Carlyon Edmondson, Major A. J. Maitland, A. (Kent, Faversham) Berry, Sir George Elliot, Major Walter E. Makins, Brigadier-General E. Betterton, Sir Henry B. Erskine, Lord (Somerset, Weston-s. M.) Marjoribanks, Edward Birchall, Major Sir John Dearman Everard, W. Lindsay Mitchell, Sir W. Lane (Streatham) Boothby, R. J. G. Falle, Sir Bertram G. Mitchell-Thomson, Rt. Hon. Sir W. Bowyer, Captain Sir George E. W. Fielden, E. B. Moore, Sir Newton J. (Richmond) Boyce, Leslie Forestier-Walker, Sir L. Moore, Lieut.-Colonel T. C. R. (Ayr) Brass, Captain Sir William Fremantle, Lieut.-Colonel Francis E. Morrison, W. S. (Glos., Cirencester) Briscoe, Richard George Galbraith, J. F. W. Muirhead, A. J. Brown, Brig.-Gen. H. C. (Berks, Newb'y) Ganzoni, Sir John Nicholson, O. (Westminster) Buckingham, Sir H. Gault, Lieut.-Col. Andrew Hamilton Nicholson, Col. Rt. Hn. W. G. (Ptrsf'ld) Bullock, Captain Malcolm Gibson, C. G. (Pudsey & Otley) Nield, Rt. Hon. Sir Herbert Burton, Colonel H. W. Gilmour, Lt.-Col. Rt. Hon. Sir John O'Connor, T. J. Butler, R. A. Glyn, Major R. G. C. Ormsby-Gore, Rt. Hon. William Cadogan, Major Hon. Edward Graham, Fergus (Cumberland, N.) Peake, Captain Osbert Campbell, E. T. Grattan-Doyle, Sir N. Penny, Sir George Carver, Major W. H. Gretton, Colonel Rt. Hon. John Percy, Lord Eustace (Hastings) Castle Stewart, Earl of Hacking, Rt. Hon. Douglas H. Pilditch, Sir Philip Cautley, Sir Henry S. Hall, Lieut.-Col. Sir F. (Dulwich) Power, Sir John Cecil Cayzer, Maj. Sir Herbt. R. (Prtsmth, S.) Hamilton, Sir George (Ilford) Pownall, Sir Assheton Chapman, Sir S. Hammersley, S. S. Ramsbotham, H. Christie, J. A. Hannon, Patrick Joseph Henry Rawson, Sir Cooper Clydesdale, Marquess of Hartington, Marquess of Reid, David D. (County Down) Cobb, Sir Cyril Harvey, Major S. E. (Devon, Totnes) Remer, John R. Cockerill, Brig.-General sir George Haslam, Henry C. Reynolds, Col. Sir James Cohen, Major J. Brunel Henderson, Capt. R. R. (Oxf'd, Henley) Roberts, Sir Samuel (Ecclesall) Colfox, Major William Philip Heneage, Lieut.-Col Arthur P. Rodd, Rt. Hon. Sir James Rennell Colville, Major D. J. Hennessy, Major Sir G. R. J. Ross, Major Ronald D. Courtauld, Major J. S. Herbert, Sir Dennis (Hertford) Ruggles-Brise, Lieut.-Colonel E. A. Courthope, Colonel Sir G. L. Hills, Major Rt. Hon. John Waller Russell, Alexander West (Tynemouth) Cranborne, Viscount Howard-Bury, Colonel C. K. Salmon, Major I. Samuel, A. M. (Surrey, Farsham) Stanley, Maj. Hon. O. (W'morland) Warrender, Sir Victor Sandeman, Sir N. Stewart Steel-Maitland, Rt. Hon. Sir Arthur Waterhouse, Captain Charles Shepperson, Sir Ernest Whittome Stewart, W. J. (Belfast South) Wayland, Sir William A. Sinclair, Col. T. (Queen's U., Belfst) Sueter, Rear-Admiral M. F. Williams, Charles (Devon, Torquay) Skelton, A. N. Taylor, Vice-Admiral E. A. Windsor-Clive, Lieut.-Colonel George Smith, Louis W. (Sheffield, Hallam) Tinne, J. A. Winterton, Rt. Hon. Earl Smithers, Waldron Titchfield, Major the Marquess of Womersley, W. J. Somerville, A. A. (Windsor) Train, J. Wood, Rt. Hon. Sir Kingsley Somerville, D. G. (Willesden, East) Tryon, Rt. Hon. George Clement Wright, Brig.-Gen. W. D. (Tavist'k) Southby, Commander A. R. J. Turton, Robert Hugh Spender-Clay, Colonel H. Wallace, Capt. D. E. (Hornsey) TELLERS FOR THE NOES. —— Stanley, Lord (Fylde) Ward, Lieut.-Col. Sir A. Lambert Sir Frederick Thomson and Captain Margesson.
I beg to move,
"That the remaining stages of the National Health Insurance (Prolongation of Insurance) Bill may be taken immediately after the Bill has been read a Second time, notwithstanding the practice of the House relating to the interval between the various stages of such a Bill."
In asking the House to proceed through all the stages of this Bill, I am asking the House to do something which is clearly exceptional, although, may I say, not without precedent. I think that there have been two or three cases where, under very exceptional stress, the House has been invited by the Government of the day to proceed with all the stages of a Bill of a similar character, and the House has complied with the request. As I said before, I believe that the desire in the House today is universal that the persons who are concerned should not be penalised, as they would otherwise be if we did not proceed with all the stages of this Bill, and I am therefore venturing to ask the House, in view of the universal desire, that we should get this Bill made law before the House rises on Friday next. I hope that with this very brief explanation the Motion may be agreed to.
I agree with the right hon. Gentleman that this procedure is eminently undesirable, and, as I said the other morning at a very early hour, I think it is a great pity that the Government, who regard this Bill as a very important one, should not have introduced it a good many weeks ago. I do not desire to say anything more at this moment, because the matter has been under discussion in the usual quarters, and we have entered into agreement that, subject to the postponement of certain other business, we have agreed to give the facilities asked for. In these circumstances, I do not propose to vote against this Motion, and I want only to make our position clear.
I hope that the House will understand that the Bill does not settle the problem, and we hope that all parties concerned will be taken into consultation. As I said the other morning, there is a case for doing this and for not doing this, but there is none for leaving out a section of people, as we should be doing if we did not get the Bill. Therefore, although the procedure is exceptional, it must be carried out.
I do not want to delay the proceedings, but I wish to express my personal gratitude to the Government for taking this step, and to the Opposition for so readily consenting to this unusual procedure. It would be a really serious thing for a very large proportion of very poor people with regard to health insurance, old age pensions, and widows' pensions if this step were not taken. I thank the Government very much for having done this.
Question put, and agreed to.
Ordered,
"That the remaining stages of the National Health Insurance (Prolongation of Insurance) Bill may be taken immediately after the Bill has been read a Second time, notwithstanding the practice of the House relating to the interval between the various stages of such a Bill."
Standing Committees
Ordered, That all Standing Committees have leave to print and circulate with the Votes the Minutes of their Proceedings and any amended Clauses of the Bills committed to them.—( Mr. Frederick Hall .)
Wild Birds Protection (Scotland) Bill,
"to repeal certain enactments providing for the protection of wild birds in Scotland; and to substitute other provisions therefor," presented by Mr. Mathers; supported by Mr. Brooke, Mr. Buchan, Mr. Clarke, Marquess of Clydesdale, Mr. Dallas, Sir Robert Hamilton, Mr. Macpherson, Mr. Marcus, Lieut.-Colonel Moore, and Mr. Ramsay; to be read a Second time upon Wednesday, 28th January, and to be printed. [Bill 75.]
Agricultural Land (Utilisation) Bill
Reported, with Amendments, from Standing Committee B.
Report to lie upon the Table, and to be printed.
Minutes of the Proceedings of the Standing Committee to be printed.
Bill, as amended ( in the Standing Committee ), to be taken into consideration upon Tuesday, 20th January, and to be printed. [Bill 76.]
Orders of the Day
Expiring Laws Continuance Bill
Order read for consideration of Lords Amendments.
Motion made, and Question proposed, "That the Lords Amendments be now considered."
The House, more than a week ago, had a long discussion on the question of whether the Dyestuffs Act, 1920, should be continued or allowed to lapse, and this House, after a very representative debate, decided, by a majority of 30, that, as provided in that legislation, it should lapse on 14th January, 1931. Since that time, in another place, a Motion has been carried which has the effect of continuing this Act for one year, to 31st December, 1931. Accordingly, the question we have to consider this afternoon—and I propose to submit a Motion—is whether that view should be accepted. I have read with very great care every word of the debate which took place in the House of Lords, and I think that in substance the chief argument came to this, that an opportunity should be provided for a brief period during which an inquiry should be held into the position of this industry, and, I imagine, into its repercussions on other industries, and notably on the textile trades. That would be an impressive argument if there had not been, in fact, a very full inquiry into the effect of this legislation, and it is a remarkable fact that from practically the beginning to the end of that debate no reference was made to the prolonged review of the Dyestuffs Industry Development Committee and the conclusion which it reached, in so far as it was a conclusion in the report recently presented.
I would also remind the House that, so far from being content with that very full review, I addressed another inquiry to certain members of the Committee and other representatives of the interests concerned, in the hope that it would be able to give some direction to the Government. That conference was representative of both the dye manufacturers and the dye users. No Member has questioned for a moment the value of the work which the Development Committee has done during the 10 years this Act has been in existence, and all must pay tribute to the very valuable analysis which was included in the report. So that we have here a powerful and representative body to which, in effect, two appeals were made. On the second occasion they were unable to give any clear direction to the Government, but I may remind the House that they made it perfectly plain that this industry under the Act had been very firmly established, that, in the next place, there was no doubt that a considerable price had been paid by the textile industries in Great Britain, and that, everything considered, I think one could say that a case even on that document for the disappearance of the legislation had been established.
So that there is, if I may say so with respect, no validity in the plea which was advanced in another place that there has not been a very full and an impartial review of the whole problem, and, in any case, there was no dissension at all as to the limit in this legislation from the very first hour in 1920, by the express insertion of these words in the Act: "for 10 years and no longer." That was perfectly plain and clear at the time the legislation was passed. I have systematically tried to keep this clear, although it cannot be kept entirely clear, of the general fiscal issue, and to address to the House one simple argument, falling into two parts, first of all as to whether this industry has been soundly established and can continue without this, and, in the second place, whether the great textile trades have established their case for the discontinuance of this legislation.
We remember that the dyestuffs industry is now concentrated in a comparatively limited number of quite powerful commercial propositions in this country, and, in particular, in two, and no one has suggested that the industry is other than in a sound condition. As regards price, those in the industry themselves have actually offered to supply at the competitive price from whatever quarter that competitive price comes, subject, as I must recognise, to the point they made about the possibility of dumped supplies. At all events, they themselves, on their own argument, are satisfied that they can meet that competition, and, if that be the state of affairs, then I think the case for further retention has very largely gone.
Taking that view, I have to turn to the great textile industries, and particularly to cotton and wool. We are reminded that in both spheres the decline in the export trade has been not only serious but grave in recent years, and from further inquiry since the decision of the House was taken, I am reinforced in the view that the time is come when these great textile industries should have access to the dyestuffs at the very best possible price, in sufficient variety and without the impediments of prohibition and licence to enable them to recover, if they can recover, important sections of their export trade. The leading Conservative and Liberal manufacturers in Lancashire and Yorkshire have stressed that consideration very strongly during the past few weeks.
Moreover, I must remind the House that in our latest analysis the heaviest blow which has been dealt to the British export trade within recent times is the decline in the two industries I have mentioned. While I am very far from suggesting that dyestuffs is any more than one factor, it is, nevertheless, an important factor as regards that variety of supplies, that attempt to get back the market in novelties that is so important, even if we are to assume that in the bulk trade it will, under the best of conditions, be very difficult, if not impossible, for Great Britain to recover the whole of the export trade which has been lost. On all the facts—and I trust with complete impartiality—I have tried to weigh up the situation, and I have no hesitation in telling the House that on the argument of the textile industries, together with the case put forward by the dyestuffs industry itself, I am satisfied that the decision which the Government reached recently was well founded and should be maintained. I beg to move, "That this House doth disagree with the Lords in the said Amendment."
That is not the Motion before the House. The Motion is, "That the Lords Amendments be now considered."
Question put, and agreed to.
Lords Amendments considered accordingly.
[PREAMBLE]:
Lords Amendment: In page 1, line 10, after the word "thirty-one" insert
"and as respects that mentioned in Part III thereof on the fourteenth day of January, nineteen hundred and thirty-one."
Motion made, and Question proposed,
"That this House doth disagree with the Lords in the said Amendment."—[ Mr. W. Graham .]
I think that in more than one quarter of the House the speech of the right hon. Gentleman will have been heard with very sincere regret. He has not made any attempt on this occasion to meet the arguments which were marshalled in this and in another place in support of the continuation of this Act, and which were advanced, not only from these benches, but from a considerable section of Members below the Gangway and from a considerable section of Members on his own side of the House. I venture to say, without any hesitation, that if a vote could be taken, without any party considerations entering into the matter at all and if the right hon. Gentleman would leave off his Whips, there would be a clear majority in this House for the continuation of the Act. [HON. MEMBERS: "No!"]
Let the House, first of all, be clear as to what is the proposition now before it. I moved formally on a previous occasion that the Act should be continued for a period of five years. I said on that occasion that we on this side would be prepared for a continuation for a year if the Government would accept it, and that that would be ample time for a proper inquiry. The proposal has now come before the House from another place that the Act should be continued only for a period of one year. It is exactly the proposal which was endorsed by a number of hon. Members below the Gangway, and the proposal—though certain other qualifications were attached to it—which was pressed upon the Government very strongly by supporters of theirs sitting behind the right hon. Gentleman. [An HON. MEMBER: "Not supporters!"] Certainly, members of the party and very well-informed members of the party. The right hon. Gentleman has said that there really is no need for further inquiry into this matter, because the committee have already reported. He said that little reference was made to the report of the Dyestuffs Industry Development Committee in the last year. I found, in all quarters of the House, that considerable reference was made to it.
Not in another place.
I am concerned with the arguments advanced in this House. Very considerable attention was drawn to the finding of that committee in this House. I did so myself. The right hon. Gentleman has mentioned to-day that he refuses to continue this Act on the findings of the Development Committee. Let me remind the House of the findings of that committee. This is the one conclusion arrived at after a very careful analysis of the industry: the Member for East Leicester (Mr. Wise), in a speech which he addressed to the House urging the continuation of this Act, at any rate, remained faithful to a policy in favour of which a certain number of votes were cast, probably for the right hon. Gentleman himself, at the last Election.
Let me make another thing clear. He said: "I have been considering most carefully the interests of the textile, trade," and he has done so, no doubt, in consultation with the Secretary of State for War, the right hon. Gentleman the Member for Preston (Mr. T. Shaw), who showed his impartiality by saying, when the Bill was introduced 10 years ago, that it was the worst Bill he had ever seen and that it could not conceivably succeed, and that the industry would become more and more inefficient. The right hon. Gentleman is so impartial that, in face of the statement of the President of the Board of Trade that the industry is so efficient to-day that it can be allowed to go on without any protection, he says: "I do not take back one word which I said 10 years ago." He is so impartial. It will be more interesting to hear from the Secretary of State for War, not whether he has changed the opinions which he held some years ago, but what are the opinions of the Service Department over which he presides as to the need of the continuation of protection to this industry. That is a thing, as I said last time and as was said in another place, we are entitled to know. When these matters were under consideration the Service Departments were always most carefully consulted. This industry is absolutely vital to the Army in war. It really is not treating the House with proper respect to come here and propose to repeal this Act without informing the House as to what are the views of the expert people in the Service Departments.
I challenge the Government upon this, that the views of their Service Departments are opposed to them in this matter, and that is why neither here nor in another place have we heard what are their views. If the Secretary of State for War honours us with an intervention in this debate to-day, I would invite him to give to the House, not his own views about the textile trade, but the considered views of the experts in his Department, because we are entitled to hear them.
The right hon. Gentleman says that he has made some impartial inquiries. Who has he consulted? He has consulted the textile trade in some capacity—I shall have a word to say about that in a moment. He has not consulted the Service Department; that we know. He is not following the recommendations of the Dyestuffs Industry Development Committee. These are on record, and hi is flying in the face of them in this matter. I asked him last time whether he had consulted the independent members upon the licensing committee, and he gave me no answer. Has he consulted them in the meantime? He has not consulted them then. We are invited to jeopardise an industry to which protection has been given. Who can be more impartial or better informed as to how this Act has worked than the independent chairman and the independent members of the licensing committee who have had the Act to administer for the last 10 years, and who, I think he will admit, have administered the Act admirably. I hope he is not going to associate himself with the attack upon the licensing committee—I am sure he would not do so—which I saw in a pamphlet which was circulated to Members this morning. Has he since we last met consulted the independent members of the licensing committee, and, if so, what is their view in this matter? I do not think he has. So much for the impartial inquiry.
We are told that, although the independent evidence and the finding of the Dyestuffs Industry Development Committee go against it that we should throw away this Act because he thinks it is going, in some mysterious way, to injure the textile trade. On that point, I will put one or two considerations to the House. Let the House clearly understand what are the terms upon which the dye-making industry ask for the continuation of this measure of control and protection to-day. The President of the Board of Trade said that he wants the textile industry of this country to have access to dyes at the fairest possible price. That is not in question. That is not challenged. He said, "I want them to have dyes of proper quality and free access to those dyes at a fair price." That is not challenged to-day.
Let me put the case fairly to the House. The only case in which prohibition is asked and in which the right hon. Gentleman is invited to-day to refuse a licence for the import of foreign dyestuffs, is where there is a British dye of just as good quality as the dye which the foreign maker is prepared to supply and which the British maker is prepared to sell to the English textile user at exactly the same price as the foreign producer proposes to sell it to the textile user in his own country. That is the proposal. We ask: How can there be the least injury to the textile trade of this country?
I have read, within the last day or two, a pamphlet published by a certain number of textile users, and I -wish to make this observation upon it. They are not for one moment directing their minds to the issue before the House at present. If hon. Members will read the pamphlet, they will see that it refers to some things which took place in the early years after the passing of the Act. When they discuss the question of price, they do not discuss the prices charged during the last year, and still less do they discuss the proposal now before the House, that prohibition shall apply only where the price is equal. They go back and discuss the prices between 1922 and 1927. Why do they not tell us the prices within the last year when many investigations were made? I will tell the House why. It was because the answer given in the prices of last year would not have sup ported at all the case which they set up. Why do they not tell the people whom they seek to persuade by their propaganda the simple fact that they will be able to get dyes imported into this country, if we continue the Act, wherever the price of the British dye is higher than the foreign price. Have hon. Members received a pamphlet signed by a certain number of gentle men? If so, I would advise them to read it. I have read the pamphlet from beginning to end and I cannot find one single reference to the real issue before the House, namely, whether or not British dyes should be protected where they are equal in quality and price.
The right hon. Gentleman has asked the House if they have any information that will assist him in coming to a conclusion as to why the price has been altered during the past year. Would it not be in order to ask the right hon. Gentleman if it is not the case that the dyestuff makers knew that the Act was likely to expire and that influenced them in doing what they did for this particular year, regardless of what might happen in the future?
Not in the least. I am glad that the hon. Member interrupted me, because he admits the whole force and fact of what I am saying. He, a supporter of the repeal of this Act, admits that to-day and for the last year if we consider prices there is no argument for the repeal of the Act. He says: "Ah, but the British dyestuff makers knew that the Act would be likely to expire, and therefore they brought their prices down." I do not think he has the least justification for saying that. They brought prices down because they were steadily becoming more efficient. The complete answer to the hon. Member is that at this moment the dyestuff makers in this country are saying to the House of Commons: "If you give us protection we undertake that our prices shall be as low as the foreign prices."
I observe, in passing, that the House has been told that the whole of the textile industry is unquestionably opposed to this Act. That statement has not any very near relation to the truth. I have referred to a pamphlet, on which there are 20 names. Another pamphlet has been prepared as an appeal to the President of the Board of Trade to continue the Act, and that pamphlet has been signed by 227 firms who are users of dyes in this country. If we are to decide this matter by the counting of heads there seems to be quite as many people who are in favour of the continuance of the Act as are opposed to it. If the Government say that all the quality is on their side, I do not think the right hon. Gentleman will be able to maintain that attitude. I do not think that there is any more important user of dyes in this country than the Bradford Dyers. The President of the Board of Trade has no doubt received from the chairman of the Bradford Dyers, on behalf of the Bradford Dyers—he is a man who for 10 years has been chairman of the Colour Users' Association—a statement that in his opinion and in the opinion of his company it would be disastrous if this Act were repealed? I do not think, in these circumstances, we are likely to be unduly influenced in our decision by a pamphlet which has been put out at the last moment signed by a certain number of gentlemen in one branch or another of the textile trade.
The Government have had a long and exhaustive inquiry into the cotton trade. I think the President of the Board of Trade was a member of it or, at any rate, some of his colleagues were on the Committee. It was an inquiry conducted by Members of the Government, assisted by eminent gentlemen from outside. That Committee made its report and the report has been presented to the House. They heard all the evidence that was brought before them by every section of the textile trade. Why does not the report recommend the abolition of the Dyestuffs Act? Why have the Members of the Government who made that report, after the most careful investigation of the cotton trade, not stated that the Dyestuffs Act is holding up the textile trade and ruining their exports? Why did not the textile gentlemen who gave their evidence and why did not the President of the Board of Trade or his colleagues who sat on that Committee recommend that the Act should be repealed There is not a word about that in the report.
The truth is, that the decision to repeal the Act is a decision which the Government have taken at the last moment. They have taken it in the teeth of the advice of their service advisers. They have taken it contrary to the advice of their Dyestuffs Development Committee, who conducted the inquiry, and which urged them to try to arrange terms between the makers and the users. They have taken it without the faintest reference to the proposal now before the House, that it shall be confined to the case where the British maker is able to supply a dye equal in quality and price to the foreign dye. They have taken it in the face of the opposition of all the great independent authorities on chemistry in this country of the professors at the Universities and of the people who are genuinely interested in seeing a great school of research built up. They have taken that decision so suddenly and at such short notice in the face of the facts and on the ground not that the industry is inefficient but that it is efficient. The Secretary of State for War challenged the efficiency of the industry, but in that challenge he was merely replying to the President of the Board of Trade, whose whole argument when he addressed the House on the last occasion, and to-day, amounted to this that the industry is so efficient we can afford to deprive it of any protection. Therefore, we need not address ourselves any more to the speech of the Secretary of State for War.
I agree with the President of the Board of Trade that the dye industry is efficient to-day, but I do not agree with him that the risk of dumping is not very present and very real. He may have been making inquiries as to the prospect of dumping. I have made inquiries and I find that the prospects of dumping are very real. Does he not know as a fact that since we had our previous debate, a week or 10 days ago, several English dye makers have been approached by foreign dye makers asking them to discontinue the manufacture of dyes in this country and to sell foreign dyes as agents? Does he not know that that is a fact. It would pay them to do that if the Act is to be repealed, but it would mean turning men out of work and turning our skilled chemists out of work. [An HON. MEMBER: "It would mean more wages in the textile industry."] It would not affect the wage of a single man in the textile industry but when the Germans had got a monopoly of the dye industry then the price of dyes would be put up to the textile industry and the wages of the workpeople in Lancashire and elsewhere would be affected. Does the right hon. Gentleman not know that those overtures have already been made? Does he not also know that there are very large stocks of dyes in Europe at this moment which can be dumped into this country when the Act has been repealed?
Will the right hon. Gentleman tell me where those dyes are?
I understand that there are considerable stocks in Germany.
What is the authority for that statement?
I am sure the House will not expect me to give names. I would never say these things in the House without having made inquiries, and having been informed.
Would it not toe better to quote what happened in 1920, after the sankey Judgment, when £7,000,000 worth of dyes were dumped into this country from Germany?
I am much obliged to the hon. and gallant Member. As he truly says, the moment prohibition was lifted there were enormous stocks of dyes that were available to be sent into this country. At the present time there are certainly the products of American factories, very large products, which have been manufactured and which can be sent into this country. I am told, but I cannot vouch for it, that there are large American stocks held in Europe, presumably in bond, ready to be dumped here. There are certainly American stocks either in Europe or in America, and it would not take them long to get across. As the right hon. Gentleman has indicated, this is not a static industry. The German manufacturing capacity to-day is about 50 per cent, more than they require for their present trade and without any alteration or without any addition to their plant the Germans could probably develop their output in the course of a month or two and dump into this country the whole of the supplies which this country at present uses. I would ask the President of the Board of Trade whether he is prepared to deny that that is not the position. I am sure that if he has made any inquiries he will not deny that statement for a single moment. In the face of a position like that, in the face of the experience we have that for a short time between the Sankey Judgment and the passing of the Dyestuffs Act dyes came in free, and the industry was handicapped for years to come by the amount of dyes that were dumped into this country. I ask him and I ask the House whether there is not a clear case for continuing the Act for another year.
Why on earth should we take so dangerous a risk, dangerous both to our textile industries and highly dangerous to the national security? I ask the right hon. Gentleman to continue the Act for another year. Let him have a genuine, impartial inquiry, if he wishes to have it. The industry is perfectly ready to face up to an inquiry. Let him set up an inquiry and let him come back to the House a year hence fortified by the report of such inquiry, and then let him ask the House to decide the matter in the sure and certain knowledge that we know what the problem is. If ever there was a case in which the other House has acted not merely as a revising Chamber, but has voiced the genuine opinion of this House and of the whole country, it is in placing this Act in the Schedule of the Expiring Laws Continuance Act. If the right hon. Gentleman persists in opposing the Amendment we shall certainly divide against the Government with all our force. This is a great national issue. It is not merely a question of Free Trade or Protection. Mr. Asquith said that it had nothing whatever to do with those issues, and he was perfectly right. It is a great national issue which ought not to be dealt with in a light and airy way. I hope that those who believe in that point of view, those who believe that the dye industry is vital not only to the security of this country, but to the textile trade, to which it has rendered great service already and to which it will render much more service in the future, will assist us in the Division Lobby.
This is not an occasion on which we ought once more to traverse the ground of the debate which took place a week ago, although the right hon. Gentleman who has just spoken has touched upon almost every point that was raised on that occasion. I cannot refrain, however, from making one observation on the speech to which we have just listened. The right hon. Gentleman has addressed two arguments to the House, first that the colour users need not be disturbed if the Act is continued, because the dye-makers have given an undertaking that the users shall have all dyes as cheap and of as good quality as if the Act were not continued. They can be quite assured that the position will be just the same, whether the Act is continued or not. The second argument was that, as soon as the Act is repealed, foreign dyes will come here so cheap and in such great quantities that our home dye-producing industry will be destroyed Surely those two argument are totally inconsistent?
The right hon. Gentleman has challenged me. The arguments are not the least inconsistent. My point is that the dye user in this country will get his dye at the same price as the German dye-makers will sell to the German textile industry.
The first point was that the English dye-maker will not be prejudiced. He will get his dyes at just the same price if the Act is continued as if it were not continued. [HON. MEMBERS: "No!"] Then what was the right, hon. Gentleman's argument. If that be not so, then the dye user will have to pay more for his dyes than if the Act is-allowed to lapse. That is just what the dye users say. The right hon. Gentleman cannot expect the two arguments to hold at one and the same time. I could understand his addressing one argument to the House on one day and on a later occasion, when it had been more or less forgotten, addressing the other, but I cannot understand his addressing two absolutely contradictory arguments to the House on the same day. Perhaps other hon. Members will be able to explain more fully how the textile trade, which is a very important element in our economic life, can believe, at one and the same time, first, that it will have to pay no more for its dyes if the Act is continued and, secondly, that, if the Act is not continued, dyes will come in so cheap that the British dye industry will be destroyed.
Since the debate the other day, the argument which some of us addressed to the House on that occasion has been greatly strengthened by the statement which has been circulated to all Members on behalf of leading men in the cotton industry. I have nothing to add to that statement, except to express my regret that it was not made earlier, before opinion had to some extent crystallised under the influence of the chemical ingredients that were distributed to public opinion by the chemical industry. The right hon. Gentleman who has just spoken said that the proposal to extend the Act for one year in order that there should be a free and impartial inquiry was not a new proposal. He said that the Dyestuffs Committee, which has been quoted so frequently in its report, urged that the parties should continue to consider the question, in order to see whether an agreement might be reached. He declares that in refusing to continue the Act, the Government are departing from that recommendation.
Since that report was issued, the parties, as I understand from what the President of the Board of Trade told us the other day, have met and endeavours have been made to arrive at an agreement, but those endeavours have been futile, and agreement has not been reached. We are told that the reason why the committee on the cotton industry did not make any recommendations with regard either to the continuation or the lapsing of the Dyestuffs Act was that these conversations were continuing, and it was hoped that during the interval some agreement might be reached. Is there any probability that, if a new inquiry were held, it would be able to arrive at any more agreed and unanimous report than the committee which has already sat and for many months considered this very matter? In all probability the committee would have laid before it precisely the same arguments. The dye-makers would say, "We wish to maintain this privilege," and the textile industry would say: "We object to its continuance." The committee would have no further ground for any decision than it has now.
The right hon. Gentleman addressed a powerful argument to us with regard to dumping. He said that, unless this Act were continued, the German dye interests might flood our markets with such large quantities of dyes as might destroy the industry. This is not a question for the continuance of the Act for one year or for five years. The flooding might take place at any time. The argument is one for maintaining the Dyestuffs Act in perpetuity. [HON. MEMBERS: "Hear, hear!"] I can quite understand hon. Members wishing the Act to be continued in perpetuity, but that is not their proposition to-day. If, in the interests of dumping, this Act should be made perpetual, that is a matter on which argument might be addressed to the House, but it is not the point that the right hon. Gentleman was endeavouring to make.
The right hon. Gentleman said that the Government were coming to the House and proposing to repeal the Act. The Government are proposing nothing of the sort. They are proposing merely that there should be no interference with the intention expressed by the Legislature when the Act was passed. The Act was passed for 10 years and no longer, in very exceptional circumstances, and the Government propose to take no action. The House of Lords have intervened, and are proposing fresh legislation. The right hon. Gentleman entirely misinterprets and misrepresents the situation, in saying that the Government are coming to the House proposing to repeal the Act. If the House of Lords propose to insist upon their amendment, and the consequence is that the Expiring Laws Continuance Bill fails to pass Parliament, they will take a very heavy responsibility upon their shoulders. The House of Lords on their own initiative introduce a fresh provision, and if that provision is not accepted by this House, the responsibility for the failure of the Expiring Laws Continuance Bill to pass through Parliament must rest with the House of Lords. If that happens, an end will be brought, prematurely, and without consideration or discussion, to a whole series of Measures, some of them important, which it has been the intention of Parliament to continue. In these circumstances, I trust that the House will agree with the Motion now before it to disagree with the Lords Amendments.
I do not wish to argue, as did the right hon. Gentleman who has just spoken, that the decision made 10 years ago that this Act should continue for precisely 10 years, no less and no more, must be regarded as sacrosanct. Most of the decisions taken by that Parliament he and I and others have strongly controverted, and no doubt we shall continue to do so. The immediate question is as to whether the method proposed by the Government to deal with the situation is the right one.
The President of the Board of Trade, in his very brief statement, dealt with three points: the question of an inquiry; whether the dyestuffs industry is able to continue without protection, and the effect on the textile industries. I quite agree with him that an inquiry, in the sense propounded by some Members on the other side of the House, is unnecessary. Most of the essential facts in this controversy are known and are not seriously disputed. There is no serious dispute of the fact, as set out by the Dyestuffs Development Committee's report, a neutral and impartial report, that the protection afforded by the Act has given British manufacturers confidence to develop their own works and has provided them with opportunities to acquire the skill and technique necessary for the production of dyestuffs of first-class quality, and in addition, that manufacturers have been enabled to bring down their cost of production to the lowest economic level. Nor is there any serious dispute that the British dyestuffs industry is able to supply 90 per cent. of the whole range of dyestuffs as cheaply as the foreigner is willing to sell them to us. The facts are not seriously in dispute. What is lacking is not an inquiry but a decision and a policy. I am still in the position of being unable to discover what real justification the Government have for pursuing a policy which seems, as the right hon. Gentleman opposite said, to link up with no conception of Socialist policy as we have propounded it.
5.0 p.m.
No amount of inquiry will help us to answer the questions as to whether the industry is able to continue without this form of protection, and as to the effect on the textile industry. Those questions refer to the future, and not to the facts as they are now or as they were. We are bound to consider the risks, the size of the risks in one direction, and the size of the risks in the other. My mind is fairly open on the question as to whether the dyestuffs industry is able to do without this form of protection. It is clear that it can carry on as to 83 or 90 per cent. of its production, but it is not at all clear what will happen if this protection is withdrawn. There is a doubt as to whether the dumping that occurred upon the previous occasion will be repeated. My own opinion, for what it is worth, is that it may be repeated for a short time but only as a prelude to an agreement between the trust in Germany and the trust in this country, whose purpose and intention could not be to seek the advantage and benefit and happiness of the British textile industry. I see no reason to believe that any such agreement would have any other purpose. We are bound to consider what would be likely to happen. Where would be the protection as to price-cuts if an agreement as to prices were made?
I have read all the information which has been supplied by both sides to Members of this House, and it seems to me that the dangers to the textile industry have been greatly exaggerated. There is some dispute as to whether the cost of dyestuffs represent 1 or 2 or 3 per cent. of the total average cost of cloth. I have talked to many textile manufacturers, and I have looked at the various items of cost of textile manufacture. Taking the higher figure, the total effect on the completed article is infinitesimal compared with the other costs in the industry on which economy ought to be made. It is idle to talk about the saving of 1 or 2 per cent. at the most as if that mattered compared with the present merchants' cost of from 40 to 50 per cent. in both the home and the export market. You want to get the thing in the right perspective. Therefore, I do not think that on either of those issues the President of the Board of Trade has established his case.
On the other hand, I am bound to say that my criticism of the course he proposes is based really on other reasons. Here we have an industry of vital importance to the textile industry which is, practically speaking, trustified and controlled by one or two strong corporations, an industry which has the power to use that monopoly position in consultation and consort with similar monopolists at the other side of the North Sea for their own purposes. The renewal of this Bill gives the Government an opportunity of dealing with that situation in a manner that will protect vital British interests. As the Bill stands, if just continued for one year as proposed by Members opposite, there is nothing to prevent Imperial Chemical Industries, Limited, and the German concern coming to an agreement—one may even exist now—under which, when quotations are asked abroad by British manufacturers, an agreed price is quoted suitable to the interests of Imperial Chemical Industries, Limited. There is nothing to prevent an agreement in regard to what shall be manufactured here and what shall be manufactured abroad; nothing to prevent Imperial Chemical Industries, Limited, having one price for British manufacturers and another for the foreign consumers. I am told that even now Imperial Chemical Industries, Limited, quote two prices for a certain type of its production, one for the British market and one intended for the export market. I am told that is the case. But, whether true or not, there is nothing in the present Act which will give anyone the possibility of interfering with such an arrangement. I am told that Imperial Chemicals, Limited, is a large importer, and we have the whole trade and the whole textile industry tied up with the Imperial Chemical Industries, Limited, and the possibility of an agreement between this trust here and that trust there. I wish the right hon. Gentleman had taken the opportunity of insisting upon a satisfactory and real safeguard for the textile industry which the renewal of this Act would give him. Latent there, is the danger to the textile industry, rather than in the more or less imaginary dangers which have been conjured up for Members.
A strong case has been made in favour of this Act on the ground that it will stimulate and assist research in this country. I believe that the Act has had vital effects in that direction, but I am not sure that they are continuing to the degree we are entitled to expect from Imperial Chemicals Limited if it has such considerable facilities afforded it. The Secretary of State for War, in the previous debate in this House, recalled when the Act was originally passed that trade union members asked for two conditions: a guarantee that research should be made obligatory, and a limitation of profits. These are reasonable conditions to insist upon where special facilities of this sort are given to a great private corporation. I having heard rumours that the activities of Imperial Chemicals Limited in research shows signs of abating, I made inquiries at Cambridge of those who are in close touch. The reply I received from a very distinguished member of the Laboratory of Physical Chemistry at Cambridge was to the effect that the position of research workers under the Imperial Chemical Industries is far from the position which some of us were led to believe was the case. It is true that the Imperial Chemical Industries are doing more for research than would be the case if there were no dyestuffs industry here, but it is equally true that where you have one single employer, or, at any rate, a dominating employer, the position of the employés, whether workers or skilled research chemists, is apt to be uncomfortable.
Would the hon. Gentleman give us the name of his informer?
I am prepared to do that privately. He is a distinguished member of the Laboratory of Physical Chemistry at Cambridge and is in close touch with a larger number of research chemists who are in Imperial Chemical Industries Limited now, or who have passed out; mostly passed out recently, I believe. In any case, there seems reason to doubt whether Imperial Chemical Industries Limited are doing all for research in this connection in this country that we might expect from them.
The hon. Gentleman is arguing a part of his Amendment which is out of order. That is in connection with chemical research within the industry.
I am not moving the Amendment but giving reasons why—
I know, but it is out of order for the hon. Member to argue here the points of his Amendment which he has been informed is out of order.
Surely I am in order in giving reasons why this Act should or should not be continued. You were not in the Chair, Sir, when previous speakers were speaking, and all of them dealt with reasons why the Act should be continued or discontinued. At any rate, the position seems to be that the Government have the opportunity now of continuing an Act for a short period during which it could secure proper production for the consumer of dyestuffs, and could tighten up administration in a manner we desire so that the fears of the textile industry might be allayed. It could get proper security for the workers in the industry and for chemists and other highly skilled professional workers who find that the existence of this Trust is their only avenue of employment.
The hon. Member is now discussing that part of the Amendment which Mr. Speaker informed him was out of order.
I am surely entitled to explain my reasons for disagreeing with a proposal laid before the House by the right hon. Gentleman.
I can only tell the hon. Gentleman that Mr. Speaker has told me that he informed the hon. Member that the three points mentioned in the Amendment under A, B and C are out of order, and therefore he cannot discuss them. The only Question before the House is, "That this House doth disagree with the Lords in the said Amendment.
Precisely. There appears to be a misunderstanding. I am not moving my Amendment, but stating why I disagree with the proposal which the right hon. Gentleman has made to this House.
I have pointed out to the hon. Member that the points he was discussing under A, B and C attached to the Amendment have been ruled out of order and therefore any discussion upon them is out of order at this stage.
It is important that Members in disagreeing with the attitude of the Front Bench should give very definite reasons why they disagree, particularly if the disagreement is based on the employment of scientific workers and the furtherance of research in this country.
It will be within your recollection that in the last debate on the question of what was the effect of the proposal you allowed us to discuss the effects of continuing or discontinuing this Act upon research. I take it that, while it will be out of order to suggest that provision should be put into this Act to enforce research in a certain way, it would be in order to say what would be the effect upon research in this industry and the chemical industry if the Act were discontinued. That was certainly allowed last time.
I submit that the fact that the Amendment contains certain points which have been ruled out of order does not make it out of order for an hon. Member to refer to those points so far as they are relevant to the Motion now before the House, which is that we disagree with the Lords Amendment.
All I can say is that these three points in the Amendment cannot be discussed now.
Are we not now discussing the general question, whether the House should or should not disagree with the Lords Amendment? Am I to take it from your Ruling that, assuming that a number of Amendments appropriate to a later stage in the discussion have been placed upon the Order Paper, any argument relating to those Amendments is to be held ineligible for use in the debate on the general discussion? Might I submit for your guidance that if the practice of putting down Amendments of this kind was largely followed and we were not allowed to discuss them, the general discussion would be hopelessly mutilated, because it would not be possible to bring before the House at any one time the essential statement of the case in its integrity.
I understood that the hon. Member was dealing with the question of technical research. This Amendment covers the period of a year, and outside that year we cannot go.
I understand that you do not rule out the full argument as to whether the House should or should not agree with the Lords in their Amendment?
No, I do not rule that out.
Broadly speaking, the position as I see it is this. This is an Act which has certainly been of immense value to a very important key industry. I am not interested from the point of view of its war purposes, although I recall in an early stage of the War being concerned with sending people to try to buy dyestuffs from Germany in order to provide for the equipment of the British Army. I am concerned with its vital importance to the broad balance of industry in this country. We hope that at some stage, earlier rather than later, it will be possible to get a much closer national control and direction over the great textile industries. If those industries were nationalised is it conceivable that they would consider it satisfactory to be dependent for their supplies of dyestuffs on the great capitalist organisation on the other side of the North Sea, or on an organisation linked up with it by agreements made without regard to the interests of the textile industries?
I believe that this was an opportunity for making the Act more effective for the purpose for which it was designed and completely safeguarding those interests about which hon. Members are apprehensive, and safeguarding the interests of the workers and of research. If the Government had taken the course of continuing the Act for a short period during which, by agreement with the industry or by further legislation, those measures of control could have been secured in the public interests on condition of continuing this measure of protection, such a course would have been in the best interests of British industry and of those concerned in dyes and chemicals. For these reasons, my Friends and I will find it quite impossible to agree with the Government in stopping this useful Act at this stage. We shall not go into the Lobby with hon. Members opposite—[ Interruption ]—because we find it equally unacceptable to leave Imperial Chemicals in a state of monopolistic independence. The right course is indicated by the Amendment which I have not been able to move, and, for these reasons, we shall abstain from voting.
A great deal has been said in these debates about the cotton industry. We have heard the right hon. Member for Darwen (Sir H. Samuel) and the Secretary of State for War, all of whom have enlarged at great length on the importance of the textile industries as compared with the dyestuffs industry. It has been said that there are only 7,500 people engaged in the dyestuffs industry, whereas there are 750,000 engaged in the textile industries, and the impression given was that the whole of the textile industries were bitterly antagonistic to the continuance of this Act. I represent a constituency which probably uses more dyestuffs than any other constituency in the country, and so far from finding that the cotton industry, that is, the dye users and calico printers, in my constituency are opposed to the continuance of this Act, I find that there is almost complete unanimity as to the necessity for its continuance.
The right hon. Member for Darwen has referred to the decline of the cotton export trade. He knows that the decline is not in the dyeing sections so much as in the grey and bleached sections, where the reduction has been considerable. The President of the Board of Trade says that we must import dyes from abroad in order to provide bright colours and attractive cloths, and enable the textile industries to sell their goods abroad. From inquiries I have made, textile goods to-day are brighter, better and more attractive than they have ever been, and more up to date. The right hon. Gentleman spoke as if the dye users are opposed to the continuance of the Dyestuffs Act. If you exclude the Calico Printers' Association, which from the beginning has been opposed, I do not think you can find anybody of any real importance who is opposed to the continuance of this Act. As for the Calico Printers' Association, let me remind the House that a former hon. Member, Commander Astbury, who was a calico printer himself, time after time gave very cogent reasons why the Dyestuffs Act was of such great value to the colour users of this country.
The reasons are obvious. It is of great importance to anybody who is using dyes to have ready at hand a band of chemists who are able to tell him not merely what colour the dye will make the cloth, but also the exact properties of the colour. The great value of this Act has been that dye users in this country have had these chemists at hand to give them information whenever they wanted it. A great deal has been said about the great German combine, the Interessen Gemeinschaft, which is ready to sell its products in this country. Anyone with a knowledge of the textile industry will know the power of this great concern. If they had to purchase their dyes in Germany this firm would insist upon orders being given over the whole range of its colours; it would not allow dye users to purchase one colour only. It is a well-known fact that when British dye users purchase dyes from Germany, almost immediately the Interessen Gemeinschaft give particulars of these dyes to competitors on the Continent, to the great disadvantage of the British manufacturer.
I have in my possession a most interesting paper, which, I have no doubt, hon. Members have read. It was delivered by Mr. James Morton to the British Association earlier in the year, and it is the most convincing paper I have ever read. Anyone reading it will be completely convinced that the Government are making a profound mistake. In this paper Mr. Morton refers to what he calls "a brown study." He tells how a certain kind of brown, the name of which I will not attempt to pronounce, was being investigated by the company with which he was connected, and how the days ran into weeks, the weeks into months, and the months into years, and still a solution of the problem baffled him. Finally, the company was associated through amalgamation with Imperial Chemical Industries, and with the chemists of British Dyestuffs Corporation, and he found that the chemists of the British Dyestuffs Corportaion had for almost the same period been trying to solve the same problem of this particular brown. It was only after 10 years of the closest study that they were able to put on to the market a dye which is being sold by the company in Germany itself. When you find experiments of this kind and research extending over this period of time being made possible by this Act it is nothing less than criminal on the part of the Government to throw away all these advantages, and make it possible for this industry, which has resulted in great advantage to our people, to be driven out of the country.
I was interested in the speech of the hon. Member for East Leicester (Mr. Wise), who has, I am sorry to see, left the House since. He charged the Government with a good many faults, including the fault of indecision, and concluded with an announcement as to his own decision on this question, which rather removed from him the right to criticise others. He based the main part of his case upon false premises. He seemed to assume that the industry on account of which he was making his claim was either progressing towards, or was actually in the state of being a socialised industry of the kind for which Socialists are working. As a matter of fact, the position at present is that neither the dyestuffs industry nor the textile industry possess many of those Socialist attributes of organisation for which we in this party are asking.
If we are to make a decision to-night on the basis that we ought to stand by the Imperial Chemical Industries, because it is nearer to the Socialist ideal than the general textile industries, then I say, again, that that argument is based upon false premises. Imperial Chemical Industries is as much an example of capitalist organisation as any other industry to which the hon. Member could refer. I further suggest that the House of Lords which pretends also to make a stand on behalf of the whole of the community, thinks as little about the whole of the community as Imperial Chemical Industries thinks about the whole community. We are really considering an Amendment sent to us from the House of Lords inspired by the business outlook of the directors of the Imperial Chemical Industries, who took so considerable a part in the debate in the House of Lords. Indeed, instead of being a great revising Chamber—
The hon. Member must keep to the Amendment, and must not engage in a criticism of the House of Lords.
I bow at once to your Ruling, Mr. Deputy-Speaker, though I should like to have an opportunity of saying what we are really discussing, instead of dealing with the highly constitutional recommendations which hon. and right hon. Gentlemen opposite pretend that we are considering in this debate. The position is this. The chemical industries which are engaged in this work of producing dyestuffs find employment—after very great advantages have been secured to them—for only some 7,000 workers, not quite as many as were in that industry 10 years ago. In the textile trades which use the products of the dyestuffs industry—the bleaching, the dyeing, the finishing trades—there are some 116,000 workers. Quoting from the Ministry of Labour figures, I find that at this moment there are, partially or wholly unemployed, among this 116.000, a total of 43,000 persons, and the claims of the 43,000 unem- ployed in the finishing sections of the textile trades are at least as important as the claims of the 7,000 engaged in the dyestuffs industry. A very much stronger case than has been attempted yet will have to be made out for a possible increase in employment in the dyestuffs industry, if we are to ignore the claims of these 43,000. It is because I think that part of the cause—I do not say the main cause—of that unemployment is the fact that difficulties have been placed in the way of the dye-users by the operations of this Act that I take the attitude which I am now taking.
Has the hon. Member definite evidence that that is so? I have evidence from many textile manufacturers in the West Riding to the effect that they have not been adversely affected.
Since the hon. Member asks me for evidence, I turn to a document which has been several times referred to, and which has been published rather belatedly by some of the leaders in the Lancashire textile trade. On page 19 of this document, entitled "Why the Dyestuffs Act should lapse," will be found one or two examples of the way in which that Act has operated against dye users in Lancashire. Here is a case:
"A consumer wishing to introduce a new dyestuff which would materially simplify his process made inquiry and discovered that licences to import would not be granted on the ground that a similar product could be obtained from British sources. He accordingly approached the British makers."
I am not giving an old instance. This was in July, 1929.
"Three months later he asked for a reply to the inquiry which he had made, saying that he was being seriously inconvenienced in the work he was doing. Samples at last were furnished to him in February, 1930."
When the supplies did come a month later they were, according to this document, widely different from the original samples and the final position was that in August of this year a supply was received which—although it was markedly inferior to the foreign manufactured article—the customer had to accept in desperation. There is a case of 13 months delay.
Will the hon. Member give the name of the firm?
It is not necessary. I have given the document in which this case will be found, and the name of the firm is not given.
Hear, hear!
I observed that the hon. Member based a considerable part of his case on a pamphlet written by a Mr. Morton and he will, at least, allow me the right to quote from a pamphlet of equal importance written and signed by the principal leaders in the Lancashire textile trade.
It was not a pamphlet written by Mr. Morton from which I quoted. It was an address by him to the British Association, delivered long before this controversy arose.
That does not alter the fact that the address is being used very widely in the form of a pamphlet for the purposes of hon. Members opposite, and I have quite the same right as the hon. Member to give quotations on this subject. I am quoting this case as an example of what goes on widely throughout the Lancashire and Yorkshire textile trades at the present time. May I say to hon. Gentlemen opposite who have attempted to prove that the price of dyestuffs has not been affected in the wrong direction, that the main body of complaint is not so much against the price levels, as against the great delay involved in the process of granting licences. The textile trade in these days has to meet rapidly changing conditions in the markets, and the trade, particularly that part of it which is engaged in the production of goods where dyes are largely used cannot afford to allow a week to go, in many cases they cannot afford to allow a day to go, if the orders which they desire are to be obtained. Very frequently a number of dyes must be compounded in order to get a certain result in the final production of cloth and if one of these dyes cannot be obtained until six or 12 months or longer has elapsed, what opportunity is there for the trade to obtain the orders which are so necessary at present?
It is on those grounds that I base my objection to the continuance of the Act. I think a case could still be made out for the view that the price charged has been much higher than it ought to have been. If it is true as we are asked to believe that we are capable of producing dyes now at prices not higher than those of our competitors, how is it that we do not obtain a considerable amount of the export trade? As a matter of fact our endeavours in this field have been largely a failure and I submit that if the contentions of hon. Gentlemen opposite were well grounded we ought to be, not only capturing trade among our own users in this country, but capturing trade at a much greater rate than we are doing among users in other lands. In the export of cotton piece goods, comparing the present with the period before the War, there has been a decrease in the case of all white goods of about 37 per cent. Taking the figure exported before the War at 100 per cent., it is now 63 per cent. But when we take the figure in the coloured, dyed and printed goods the decrease is greater still. [HON. MEMBERS: "NO!"] I will give the figures. Calculated in millions of linear yards, the figure of exports for 1913 was 2,673, and in 1919 that figure had fallen to 1,522—that is, from 100 per cent. to 56 per cent.—whereas if we take prints only in which dyes are very largely used the decrease in the exports has been from 100 per cent. to 44 per cent.
Will the hon. Member quote also the figures for dyed yarn goods?
It is not necessary for the purpose of this argument to do so.
The hon. Member must know that more dye is used in those goods than in the other goods.
I only know that, in the total of the exports of dyed and printed goods, there is a much greater falling off than in the exports in the general Lancashire white trades. In these circumstances I submit that some factor has been operating as between 1913 and 1929 which has made it harder for us to keep up our exports of dyed goods, than to keep up our export of white goods.
The hon. Gentleman is quoting from an ex parte statement issued by certain textile manufacturers. Would it not be better to quote the figures given by the Government Cotton Inquiry, which are much more accurate and intelligible figures, giving the various classes of bleached, unbleached, printed, partially dyed, and wholly dyed goods? That would completely destroy the hon. Gentleman's argument.
The hon. and gallant Gentleman, in spite of the long intervention which he has made in the interests of his friends on the other side—[ Interruption .] Let us deal with the facts as they are. The hon. and gallant Gentleman has not been able in one particular to affect the argument which I have been using. All he has done is to cast doubt on the correctness of these figures—
Bring them up-to-date.
The figures are those of the years between 1920 and 1929, which is the last year for which we have complete figures. These figures ought to be allowed to stand unless it can be shown that there is something fallacious in them or in the argument which I am using The figures, unless they are proved to be wrong, indicate that in those parts of the textile trade which most need dyestuffs, the falling off in exports has been a very much greater percentage than in those parts of the textile trade where dyestuffs are least used. That being so, I submit that if we have at heart the interests of the woollen and cotton industries and the vast number of people who are employed in those industries, it is criminal to go on risking the success of those industries by continuing an Act which has operated so much against them. Because. I am certain of the evidence which I have from the woollen manufacturers in my constituency, who complain not only of the length of time that has been wasted in their efforts to secure licences, but of the price they have to pay, I ask the Government to stand by the decision that they have made.
I ask the House to consider the question, not from the point of view of one industry, but from the national point of view. On the last occasion the right hon. Gentleman the Member for Darwen (Sir H. Samuel) gave us some very emphatic arguments as to the success of the Act. An overwhelming case was then made out by the right hon. Gentleman. He pointed out that it was the unanimous decision of all parties that this Act should be set up, and he pointed out that Mr. Asquith, as he then was, gave it his blessing. [ Interruption .] I understood that the right hon. Gentleman pointed out that this was not a question which ran across the lines of demarcation of Free Trade and Protection, but was a separate issue, and I think I am right in saying that Mr. Asquith declared that, such was the vital importance of this industry, that never again must we allow ourselves to be in a position of dependence on foreign countries. The right hon. Gentleman the Member for Darwen went on to point out that the dyes were now as good as those of Continental countries in many cases, and better in some cases. He pointed out that there had been a colossal increase in production. The increase in production has been multiplied six times. He pointed out also that the price was no longer excessive—those, I think, were his words—and that efficiency in the experiment had been proved. He further admitted that the exports were up. The right hon. Gentleman then gave a tribute of thanks to those who have carried through these great achievements, and I beg the House to remember that the very men who were commended by speaker after speaker from all sides of the House for the wonderful work they have achieved in building up this industry. are urging that we should extend this security for a longer period.
What was the most important of all the right hon. Gentleman the Member for Darwen used the words, "At the first signs of dumping, this House would act." I think that those were the words of the right hon. Gentleman. Has the House any confidence that, if goods were suddenly dumped into this country, as we see in connection with certain products of Russia, the House would act? Would the present Government act? That is a gamble upon which no industry could rely. Least of all do I expect that the right hon. Gentleman the Member for Darwen would get up and say, "We must stop this dumping; we cannot carry that monster on our backs." When the crisis comes, I am very doubtful whether the right hon. Gentleman would say that The right hon. Gentleman and the President of the Board of Trade both appear to be in the same difficulty. The Presi- dent of the Board of Trade says, "What is all this fuss about? Here are the great dye manufacturers of this country now saying that they can produce at the competitive prices of the world." That was the same argument which the right hon. Member for Darwen used—why should they want this security when they can produce at competitive prices? Surely the whole argument is that they are able to produce at these world prices owing to a secure market, and as long as you have plant on the Continent of Europe which is only half occupied, there is an enormous opportunity for foreign competitors to try to smash our industry by swiftly entering with their products at a lower price than we can sell in this country with our plant.
The hon. Member for East Leicester (Mr. Wise) referred to the case of Imperial Chemical Industries, and accused them of having sold certain types of chemicals abroad at a cheaper price than they are selling them to the home consumers. That is very likely. I do not know anything about particular cases, but that is what every country in the world does. [An HON. MEMBER: "Dumping!"] Precisely; have I an ally in the hon. Gentleman at last? Does he agree that, if having satisfied your home demand you are selling to foreign countries at a price which is only slightly over your manufacturing cost, that ought to be stopped? If so, what is the argument? We have had this problem in front of us for a considerable time, and no business man on these benches or on those will deny that it is the ordinary practice, when you have satisfied your home wants if you have produced a larger quantity, to sell your goods without the charge of your overheads. You may be able to sell at such a price which only represents half of your overheads, and still make a profit. That is the danger. It is no good hon. Gentlemen wondering whether there is a possibility of Germany dumping her dyes into this country. You have the actual fact of great importations of dyes in 1920 or 1921; or you can go back to the days when we had a thriving dye industry in this country, and under Free Trade it was completely destroyed by German dumping. When they had destroyed the industry, they immediately raised their prices.
If hon. Members are fearful of what may happen, I beg them to look at the evidence of the last few years. We have been producing certain dyes which were amazingly difficult to complete. While the Germans had a monopoly of those expensive dyes, they were sending them into this country at a very high price. Directly they heard that our process was nearer perfection, their price came down. Directly perfection was reached, it came down to an enormous extent, so that we were able to produce them on a commercial basis. The expansion of this chemical science is not a matter of a day, a week, a month, a year or even 10 years. It took Bayer 18 years before he completed synthetic indigo. If that be true, how long are we to give the scientific experts to come up to anything like equality with the great experience which the German industry has behind it? In this case, we have achieved what we are out to achieve above everything else—greater employment, greater production and greater exports. No industry in the last 10 years can show a comparable advance to that, with perhaps one single exception.
Beet sugar.
The hon. Gentleman speaks of a very highly perfected industry under some form of protection. I submit that practically no industry, certainly no industry for export, can show exactly the same results. With that fact before us, and realising that in days of great perli Members of every party said that this thing must never happen again, I beg that we should continue the operation of this Act, at any rate for some further period. It really is gambling with the fate of our country to open once more the gates, so that the flood of our foreign competitors can come in and threaten this one great outstanding success of the last few years with the disaster which we see in so many other industries.
6.0 p.m.
As one who supported the President of the Board of Trade in the last vote taken on this subject, when it was a question of renewing the Act for five years, it is only fair that I should openly tell him why I cannot support him on this occasion, when we are offered a compromise by the House of Lords which it seems to me we ought to accept. I am all for fighting the other place when there are suitable subjects on which to fight. I first entered this House in 1910, when that subject occupied the attention of hon. Friends of mine in all parts of the House; but on a subject of this kind I suggest there is no adequate reason for controversy with them, if we can come to a reasonable understanding together. Nor, by the way, do I see any sort of reason why we should have a party vote on this question. I cannot forget that, had the Government not taken our time this afternoon, we should have been debating a Motion, which is still on the Order Paper, in which a Liberal Member would have called attention to the need for better co-operation among all parties in this House; and I think this is an admirable moment for us to give an example of a very desirable form of co-operation.
I do not in the least take the view that if we do not renew the Dyestuffs Act the industry will fall to pieces, that we shall be flooded with foreign dyes, and that all the rather extravagant fears which have been expressed will be realised. On the evidence before us it is quite clear that textile opinion is by no means unanimous. It is perfectly true that organised bodies entitled to speak for the textile industry desire that the Act should not be renewed, but is our experience of the organised opinion of the textile bodies, such as to make us place so much reliance upon that view. There is plenty of very highly-qualified individual textile opinion on the other side; and I submit that that is at least as worthy of our attention as the view of organised bodies who have shown themselves singularly unable to adapt their industry to modern industrial and competitive conditions. Moreover, from the textile point of view there is this further argument. If the right hon. Gentleman opposite would guarantee immortality to this Government this point would not arise; but it is possible that in the course of 10 years he may think that another Government is preferable. Then what would certainly happen is that dyestuffs would be protected by a tariff, an infinitely worse form of Protection than this extremely interesting experimental method of prohibition and admission only by licence. Ask any textile person which he would prefer, a tariff that must necessarily raise the price of dyes to him or this limited form of licence under which the dye makers undertake not to charge more than the Continental price. I do not think any textile person would hesitate in choosing between the two.
In making that statement does not the hon. Member overlook the delay which is caused by licences? In the case of a tariff the conditions are well known beforehand to the trade, and it does not create the inconvenience which these licences cause at the present time.
I entirely agree with my hon. Friend that the question of delay is a substantial one, which we must face, and I shall deal with it later. The present Government appear to be copying the error of their predecessors in premature scrapping of legislative experiments and in the interests of an interesting experiment I ask that this Measure shall be allowed to continue. Since the War we in this House have shown ourselves very intolerant of experiments. We have dropped them just at the moment when they were becoming effective and worth going on with. Hon. Gentlemen opposite have been the great offenders. Some of them will remember the enormous trouble that was taken to pass the Corn Production Act. That was a very unusual type of Statute and an extremely interesting experimental method of helping agriculture. In 1920, when hon. Members opposite were in control of both Houses, they altered the minimum price for oats from 32s. to 46s., and within six months of that they abolished the Act altogether instead of correcting the error which had shown itself and making the Act a workable one. Similarly, hon. Members will have recollections of the Stevenson scheme in regard to rubber. That was another form of price regulation and control of production, a very interesting and in some ways a useful scheme. The error there was that instead of the price being brought down and down to meet the conditions of the market it was put up to a fantastic figure. Instead of correcting that error, again, they abolished the whole scheme. Now we are asked to do the same thing in the case of dyestuffs.
I admit that we have had clear evidence of hardship to the textile firms. Let us accept that fact. But are those errors inherent in the whole system or are they curable by experiment and by trial? Personally, I believe they are curable. Delay under the licensing system is surely curable. If there is adequate machinery, we ought to be able to reduce delay to a quite negligible point. Take the second objection, the access to new dyes. It is most important that the textile industry should be able to get new dyes as quickly as anyone else. Dr. Morton who, I suppose, uses more of the up-to-date and new dyes than most of his competitors, says he has found no difficulty, but other manufacturers say they have had difficulty, and we admit it. It may be possible to alter our system of licences so as to allow new dyes to come in freely until we in this country can show that we can provide an adequate alternative. That is the sort of error which ought to be corrected. It is the same with the question of substitutes. People complain that they have to use second best materials and that this may cause them to lose orders in foreign markets. If our dye makers cannot produce an adequate substitute, let the good dyes come in freely. It is all a question of organisation and machinery and adequate management.
I do not myself suggest the precise procedure which the other place thought was appropriate. I do not believe that we want any more inquiry at this stage; what we want is more experiment. What I should like to see would be the dye makers and the licensing committee alter their technique, as they promised to do, and that any new methods they introduce should be given a trial for a period of six months, with an inquiry to follow in the summer. If, in spite of the promises of the dye industry, inquiry showed that the new conditions still involved the textile industry in a substantial grievance, I should be the first to say, when the Act comes up again, as it must come up next autumn, that the textile industry had proved their case and we must not renew the Act. To drop the experiment at this moment would be wasting a very great deal of fruitful knowledge which we have acquired, and to waste it at a time when we might make it more fruitful than it has yet been.
I find considerable difficulty in understanding why the hon. Member for Central Leeds (Mr Denman) voted as he did on the last occasion, because all the arguments he adduced to-day were put forward in the last debate.
It is a question of the time. I think that in five years we might have standardised the present evils, but that with a one-year experiment and the kind of procedure which I suggest we might get a changed technique in the licensing system; and there would also be an early possibility of putting an end to the Act if it is proved not to work well.
The issue which has been re-submitted to the House by another place is precisely the issue which was debated last time. The right hon. Gentleman who led the opposition said in his opening sentences that the House of Lords have put the issue to us once more. I will not bandy words with my hon. Friend, but I am still left in complete bewilderment as to the change in the situation or the new arguments which have persuaded him to change his mind. Considerable reference has been made to the position taken up by the House when the Act was passed. My Noble Friend the late Lord Oxford did say that from his point of view it was not a question of Free Trade and Protection. I remember very well the whole of the debate, because it lasted a considerable, time. The arguments of the late Lord Oxford at that time are not in any sense relevant to the issue to-day. What he argued was this: The Government had committed themselves to this experimental and protective Measure, and what Lord Oxford said was that he felt himself obliged not to vote against this proposal, because a large number of people had put their money into the concern as a result of the Government's patronage of the experiment. His idea was that the system of licences was altogether wrong, and that it would have been much better to offer a subsidy. Then someone said, "Are you is favour of a subsidy?, and he replied, "Not at all; I am in favour of grants for tech- nical education by which the Germans have driven us out of the field." A third point put forward was that any profits which came from this experiment, after a return had been made to the shareholders, should go to the State for the purposes of research.
The whole of what has happened was foreshadowed during the course of that discussion. First of all the shareholders have got their money back—several times over in some cases; so the public have not been defrauded. Secondly, the object of the Bill was to secure for the industry a chance to get thoroughly well on to its legs. Thirdly, after the end of a limited time, in 10 years and no longer, it was clearly contemplated that the industry would be in a position to compete in the open markets of the world in this necessary raw material. Ali those conditions have been fulfilled, but, as a matter of fact, the industry has very substantially confined itself to the bulk products. It is still a charge made by consumers that the superior and varied dyes are best produced by manufacturers on the Continent. That is the real case, and the arguments which we put forward before the House at that time were substantially those, and Amendments were moved to that effect, that the freest possible access should be given all the time to these superior and varied dyes in which the makers on the Continent have so large a skill and such a measure of adaptation
Where we are really beaten—and this very interesting pamphlet which, has reached the hands of hon. Members sets it out clearly—and where the real pinch comes to us is in connection with our competition for the foreign market where those dyes of this superior and varied kind are an absolute essential to our holding our own. It has been said, What difficulty is there about getting these dyes? Well, these men who consume these dyes say there is both difficulty and delay.
I use them every day, and I never have the slightest difficulty.
The hon. Member is exceptionally fortunate.
So far, only two cases have been produced in which difficulty has been found, and there are 60,000 applications which have been granted, so that the exception is the other way round.
Of course, the applications are granted, but it may be after considerable delay. That is what these gentlemen in this list, which contains well-known names high in commerce and in integrity say in the information which is given to us to-day, and I would refer hon. Members who desire to check this off to page 20, which says:
"It is apparently not clearly recognised how harmful can be these restrictions owing to the delay involved in obtaining materials essential to production."
It gives instances where it has been proved that a dye cannot be produced by British manufacturers before it is allowed to come in, and after vexatious and harmful delays these licences are given. There is a complete conflict of testimony. The whole of this matter has already been before various Committees, but some time or other the House of Commons has to make up its own mind, and until you get a unanimous report from any one of these Committees, you will never get a satisfactory and clear issue. The House of Commons must make up its mind, and on the whole of the history of this very complicated and difficult matter you have it clearly established that the public have got their money back, that the industry is on its legs, and that there is still undoubtedly a very large and clamant need for free access to these dyes which are best obtained, I say, in the open market.
I think it is a strange irony that on this particular occasion it is we who are asking for an inquiry and the Government who are refusing it, because on all other occasions when it is a question of putting off some decision, the Government have been only too glad to have an inquiry, but when it is a particular instance of safeguarding an industry and giving employment in this country, they refuse to have any inquiry whatsoever. That is the position with which this House is faced to-day, and I should have thought that, having regard to the extraordinarily moderate proposal of the other House, the Government would have welcomed this opportunity of getting themselves out of a fairly great difficulty even with their own most enthusiastic supporters. The hon. Member for East Leicester (Mr. Wise) has on two occasions made fine speeches against the repeal of this Act, but on this occasion he has run away, and, as one of his own friends opposite said, his position is the more contemptible because he spoke so strongly before against the repeal of this Act.
It seems to me that we have every reason to be proud and grateful to this industry in this country. In the first place, we should be proud of it because it comes from a British source originally. It came from the Royal College of Chemistry in London, and I think it was Hofman who said on that occasion, in his romantic way, that new bodies were floating in the air. It took another country to realise the meaning of those new bodies. [An HON. MEMBER: "Why?"] Because the German people are interested in science and in mass production, and so they managed to invade our Free Trade market. That is why the flourishing dye industry in our own country was destroyed then. It seems to me to be a very unhappy thing that we, who at that time were masters in the textile world, owing to our huge advance over every other country in the methods of spinning and weaving, were not able to develop this idea, which was of such vast importance, to this selfsame industry.
I will give one example of how the Germans invaded our market. There was a magnificent dye, known as Turkey red, manufactured in this country. While it was manufactured here, the Germans dumped it here at a price of 5d. per lb., until they had killed our manufacture of Turkey red, and when they had done that, they raised the price to 2s. 6d. per lb. That is the result of Free Trade in this country in the dye industry. That is a definite instance, and it is only one of many which I could give if I had the definite records before me, but that instance is one of which I am absolutely certain.
Apart from anything else, the dye industry in this country will die in another sense if this Act is repealed. Let us consider what it means to this country. In the first place, it gives direct employment to 7,000 people. That in a way may seem a very small industry, but in another sense it is the largest industry in this country, because it employs more skilled, scientific people than any other industry here, and that itself is a very important thing indeed. Scientists have been in the past lonely people. They have been little supported by the State, but no State can continue in prosperity unless it helps and supports its scientific people. They have made the modern world in which we live, and it is largely because the German Government supported their scientists that they were such a powerful State in 1914.
Then came the War, and our dye industry having been killed by foreign competition, the industrialists and the workers of this country turned to the scientists to save them from the situation in which they found themselves. The scientists, rose to the occasion and did save them, not only during the War, but after the War. In 1920, in the boom period, when the textile people were making millions, it was the British dye industry which kept things going. These may be sentimental and nationalist arguments, but we do not need to rely upon them alone. We can rely upon economic arguments. Hon. Members opposite say in general terms that prices have gone up as a result of this measure of Protection, but what are the facts? Before the War, as the right hon. Gentleman the President of the Board of Trade said, the average price of dyes in this country was Is. per lb., in 1920 it rose to 4s. 6d., and it is now about 1s. 6½d. per lb., which, having regard to the altered value of the pound, is not an unreasonable increase, if it is an increase at all.
Then, with regard to the result on the textile trade, I think my hon. Friend opposite gave extraordinarily unfair figures and a prejudiced account of those figures. If I were going to look at the result of this measure of Protection on the textile trade, I should look at those goods which were wholly coloured, and I say that the decrease in our export trade in this particular class of goods is much less than in any other class of Textile goods, and in fact shows an increase in sterling value from 1913. That is the first thing that one should look to if one wished to see whether there was a definite increase or decrease in the textile goods as a result of this measure of Protection.
It is acknowledged on all sides that we have reached a high standard as a result of these 10 years of Protection. The right hon. Member for Darwen (Sir H. Samuel) seeks to put a legal meaning on the term "ten years." He says it is 10 years and no more, but I say that it may equally have meant 10 years' pro- tection at least of this special industry. Is the efficiency of this industry to be pleaded in this particular respect? The dye-makers themselves say, "No, we are not in an efficient condition to face the dumping of the world," and they have definite arguments to go upon. They have that argument of the originally prosperous dye industry of this country, and they have the particular instance of Turkey red which I have already mentioned to the House, and then again they have the other instance of what took place between the disastrous judgment of Mr. Justice Sankey, as he then was, and the bringing forward of that Act. There were £7,000,000 worth of dumped dyes in that short interval of a few weeks.
That is an element of proof of what the future may be. What has been the policy of the German dye-makers throughout the whole of the period of this Act? Their policy has been that, wherever there is competition between British and German dyes, in a particular field, wherever we can produce a dye in Great Britain, they show a price to make ours look expensive. On the other hand, where there is no competition and where they alone can produce a dye, they put the price up far in excess of the economic price. I could show that again and again, and, after all, if our price for dyes is 1s. 6d., we may also say that the average price of exported German dyes is 2s. 2d., which shows that they are exporting generally at higher prices than we charge to our own people.
That being the history of the matter, and there being almost a certainty of methods of this kind when the Germans have our free market to enter, are not the dye-makers of this country entitled to say that, until we can be sure that we can compete in the markets of the world, we should at any rate have this very limited measure of protection? I think there is an overwhelming case for a compromise such as that which has been proposed from another place. I do not think there can be any argument against a reasonable delay in this matter. Hon. Gentlemen opposite talk about the delay which is imposed upon those who wish to apply for foreign dyes, but I am informed that in over 90 per cent, of the cases they receive the licence almost in course of post, or, at any rate, in the course of a few days; there is really no delay in the matter at all.
I would say one other thing. It has been argued that we are not able to produce novelties in this country, and that the Germans are discouraged from introducing novelty colours here. Of course, foreigners have had to specialise in novelties, because the ordinary dyes are kept out, but even in this country there has been specialisation during the last 10 years, and a special study has been made of novelties for the British market. In all these circumstances, I ask the President of the Board of Trade to reconsider his decision.
I am glad to have the opportunity of saying a few words on this matter. I greatly regret that I, with others on these benches, do not see eye to eye with those on the Front Bench who have spoken on this matter to-day. I rather regret that the last speaker talked about Protection, because I think we are all agreed in this House that this is not a matter of principle, that it is not a matter of Protection or Free Trade, but that it is a matter of balance between advantages and disadvantages to dye-makers on the one hand and textile users on the other.
I have been going into this matter very carefully during the last fortnight. I represent a constituency in which the majority of the workers are connected with the textile trade, and few or none with the dye-making trade, so that I approach this matter entirely from the point of view of the textile trade. I have no personal interest whatever myself in the dye-making trade. When this matter was raised a fortnight ago I took considerable trouble to make inquiries among leading members of the textile trade. At that time, as the House knows, the case on the side of the textile trade had not been put at all, and I made inquiries as to what the views of the trade were. I think it may be said that two propositions have been stated.
The first is that the dye-makers are absolutely unanimous that the dropping of this Act will do them very serious damage, and they have a lot of support from the universities, from professors of chemistry, and from those who believe that one of the biggest developments to be expected in the next generation is in the industries depending on organic chemistry. The production of oils from coal, of fertilisers from the air, and other great things, all require very elaborate organic chemical research, and there is agreement on all sides that the dropping of this Act is to some extent imperilling very important industries in this country—[ Interruption ]. I am surprised to hear anyone say "No," because I discussed the matter with all kinds of people who are interested, and, although they may differ on the other point to which I am coming, they agree upon that. At any rate, I personally am satisfied that we are going to some extent to cause damage to these great industries if we drop this Act.
The question, therefore, is whether we are going to cause greater damage to the textile industry by carrying on the Act. I have made careful inquiries into this matter, and I am sure that here again no one will deny that there are acute differences of opinion in regard to it among the users. I wrote to a number of leading merchants—seven or eight—and, as it happened, not one of them expressed a strong opinion that the Dyestuffs Act was doing any damage to his business, whereas one or two expressed a strong opinion that the Act should be continued. But there is one fact which I think has not yet been brought to the attention of the House, and which, to me, is decisive.
The leading body in the textile trade, as regards exports, is the Manchester Chamber of Commerce. The right hon. Gentleman the Member for Darwen (Sir H. Samuel), when he spoke on this subject the other day, said, I think, that the Darwen Chamber of Commerce, the Blackburn Chamber of Commerce, and the Preston Chamber of Commerce were in favour of dropping the Act; but, with, great respect, they are not particularly important bodies compared with the Manchester Chamber of Commerce, and the striking thing is that the Manchester Chamber of Commerce, which is a very energetic body, including the very ablest people connected with the export trade, has taken no line whatever on this matter. To me that is decisive. The Manchester Chamber of Commerce, wherever the interests of the trade are threatened, can be relied upon to take action, and to present the case very much, better than the case has been presented on the side of the textile industry up to the present. Therefore, it seems to me to be conclusive, from this and from the conversations that I have had with other people, that the textile trade is by no means unanimous that the carrying on of this Act is going to do any damage to it that is worth speaking of.
These are the two facts—that the dropping of the Act will certainly do damage to the dye-making industry, and that we have no definite evidence as to whether it will do damage to the textile industry. I do not think we can make up our minds on the ex parte statements which have been put before us, and I plead that we should have an inquiry. I differ entirely from the statement of the President of the Board of Trade that the Development Committee has already made adequate inquiries. As far as I understand, that committee consisted of two set of members, the one representing the users and the other the producers, who differed irreconcilably. What they did was more or less that each set put down a mild statement of their views, and the report consists of two different halves, each contradicting the other. A committee of that sort could not be expected to get at the facts. I think there is a very strong case, indeed, an irresistible case, for appointing an impartial committee, not of users or makers, but of impartial people knowing something about the trade, and for asking them to make a report on this one question, which, is the only doubtful question, as to whether the carrying on of the Act will damage the export textile trade. If it were going to do any serious damage to the position of the textile trade, I should not have the least hesitation in voting for dropping the Act. It is because I doubt that that I hope that the Government or this House will decide that the Act shall be carried on for one year, and that there shall be an impartial inquiry during that year.
May I at the outset deal with the appeal made by my hon. Friend the Member for Central Leeds (Mr. Denman), who seems to think that this is a compromise offered to us by the House of Lords? If, in his innocence, he thinks that what this means is an extension for one year, and that at the end of that year the Act will automatically lapse, I am afraid that that is not my opinion, and I would ask him to ask hon. Gentlemen opposite whether that it what they understand. If they understand that the Act shall definitely lapse at the end of next year, I would like to hear a statement to that effect.
There is no doubt at all, in my opinion, as to what the legal effect of this Amendment of the House of Lords is. [ Interruption .] The legal effect is the effect that Parliament gives to it. The effect of the Act of Parliament, if the House of Lords' Amendment is put in, is that this Act will go on for one year, and one year only, unless Parliament chooses on another occasion—[ Interruption ]—to reinsert it. Therefore, the hon. Member for Central Leeds (Mr. Denman) was perfectly right.
My whole point was that, before this matter came up again, there should be an inquiry, the dye-makers agreeing in advance to abide by the result of the inquiry.
I think it is perfectly evident how the matter stands. When we come to the end of the year, we shall have exactly the same process. We shall be told that we cannot have our expiring Acts renewed unless we automatically renew this one. I would ask my hon. Friend to drop the figment of imagination which leads him to think that this is a compromise; it is handing over to another place the right to say that whatever decision we take as to whether an Act shall be continued shall be of no avail, because immediately an Amendment to the Expiring Laws Continuance Bill will be brought in in exactly the same way as this, and next year we shall be faced with exactly the same position. I am really surprised that my hon. Friend has fallen in that trap. [ Interruption .] We shall certainly be here next year.
Will the right hon. Gentleman allow me—[ Interruption .]
The last speech shows an extraordinary change of attitude, because I understood that the hon. Gentleman, in his time, associated himself with the resolutions passed by at least one of the Chambers of Commerce of which he spoke, against the continuation of the Act—[ Interruption .] I will show him the proof afterwards. He mentioned three towns, and contrasted them with Manchester, but there is not one of the towns that he mentioned that does not manufacture more cotton goods than Manchester itself, while two of them manufacture at least five times as much as Manchester.
Surely, it is not a question of manufacture, but a question of export.
Who has to sell the goods that are made?
The merchants.
I always understood that the manufacturer sold the goods, I always understood that the manufacturer made his goods for sale—
May I explain to the right hon. Gentleman that in the cotton trade the manufacturer sells to the merchant, who sells to the consumer?
May I explain to the hon. Gentleman that the manufacturer sometimes makes goods for the merchant to sell, and sometimes sells them direct? I do not want to go into technical details, but the discussion has proved conclusively that some of the Members who have addressed the House on this matter have been quite unaware of what the textile trade is. For instance, in a speech a few moments ago, we were asked to compare, not printed goods, but dyed goods; but, as a matter of fact, the printed goods generally contain more dye than the dyed goods. Here is an example. In this print shirt of mine, two out of every four threads are dyed. If I am not mistaken, the hon. Member opposite is wearing a shirt that is dyed, and perhaps two out of 10 of the threads in his shirt are dyed— Interruption .] I am looking at it from a distance, but I think I am fairly well within the mark. It is as well, therefore, that we should know what we are talking about. There seems to have been, on this side of the House as well as on the other side, the idea that during the last few years, under this Act, there has been an enormous growth of the industry and an enormous growth of technical and research staff, but precisely the opposite has occurred.
Ask the President of the Board of Trade.
I do not need to ask my right hon. Friend or anyone else I can give the hon. Member the official report presented by the Dyestuffs Industry (Development) Committee. If he cares to turn to page 29 of that report, he will see that the number employed in 1920 was 7,632, and that at the end of 1928 it was 7,209.
Will the right hon. Gentleman now give the figures regarding the textile workers for the same period? Will he also give the amount of production of the industry in pounds during the same period?
I will go further and say that, while we are importing 1,600 different brands because they are not made in this country, our research staff is going down. Here are the figures again. The research staff in 1920 was 594. In 1928 it was 378. The full-time research staff in 1920 was 120, and it had sunk to 105 in 1928. Those are the facts. At the time this sinking in the research staff was taking place, we were, and are yet, importing 1,600 different brands that we cannot make ourselves. It is as well, if we are going to take facts, that we should face the facts, and those are the facts that, instead of this industry developing tremendously in numbers in research staff, it has diminished.
Then we turn to the question whether this industry is of more importance than the danger which is now being experienced, and which has for a long time been experienced, by the textile trade. We are told that if this Act collapses the dye making industry will die, to repeat a pun that has been made on the other side. If anyone believes a word of that, he has a different credibility from my own. The fact of the matter is that the largest maker of dye stuffs in this country is the firm with which the hon. Member opposite is connected, and dye stuffs form quite a minor part of the concern. The idea that they are going to be crushed out of business by a lot of Germans who are going to sell at smaller prices than they do may appeal to hon. Members opposite but it does not appeal to me. I do not believe a single word of it. I do not believe the dye making industry is in the slightest danger, and there is overwhelming evidence from the Dye Stuffs Committee report itself and from the report of these men engaged in the textile industry, most of whom I know, that there have been delays, that there has been difficulty and that orders have been lost owing to these difficulties.
People talk learnedly about the price of dyes. There again it is as well to have some knowledge of what goes on before one speaks. Everyone knows that the price of the dye itself is not the principal item at all. The question is the quality of the dye, the novelty of the dye and the quickness of getting on the market with your novelties and, if you have not got the novelty, if you have not got the new shades, if you have not got the fastness in the dye, the price of the dye is a mere detail in comparison. Is it true, or is it not, that during all these years, textile manufacturers have been handicapped because dye stuffs could not be had quickly of the kind, and that they have lost markets in consequence? These cotton employers, most of whom I know, and who are certainly not of my shade of politics, say quite distinctly that, so bad have things been, that in one case at any rate the goods had to be exported to Belgium to be dyed and finished. That is what has been going on. Even the dye users themselves are not as vitally affected as the makers of textile goods. As a matter of fact, during all the distress in the textile industry the spinners and weavers and employers have been doing badly, but the dye users have not been doing badly at all. They have been doing comparatively well.
The one industry that really needs looking at is the industry of spinning and weaving. There are some 600,000 people in Lancashire and Yorkshire whose livelihood depends on the sale of textile materials. There are 7,000 employed in the dye making industry. There are 90 times the number employed in the actual making of cotton and woollen goods. We do not need to argue. My hon. Friend the Member for Leicester (Mr. Wise) gave the case away himself. He called attention to an occurrence in Denmark where he said the Germans were stealing our trade because German dyemakers were alleged to have supplied special dyes to German manufacturers in advance of general sales. If that is not the clearest possible proof of the argument used by Lancashire and Yorkshire men that these novelties are essential and vital, I do not know what can be called proof. I have already called attention to the fact that, if anyone believes there have been tremendous developments in this industry in the last few years, he or she is entirely wrong. The figures prove it. This report cannot be read by any honest man without finding reference after reference to the fact that we have been handicapped by not being able to get the goods quickly. No one can read it without finding that a tremendous amount of these dyes have to come in because we cannot make them at all. All the time, before they can come in, there is the process of a licence, there is the reference to manufacturers and there is the case pointed out by the manufacturers from Lancashire that in one case at least 14 months elapsed before satisfaction could be got. Why inflict all these things on us? Have we not done badly enough in Lancashire without all this? Is there to be no sympathy with our people in Lancashire? Have the finest body of workmen and women in the world continually to go on under this because someone says there may be one or two men out of 7,000 who may be dismissed, and that some research will suffer. I doubt whether any research will suffer. The right hon. Gentleman the Member for Hendon (Sir P. Cunliffe-Lister) wanted to know what was the advice of the Research Department. What was the advice of his Department?
Strongly in favour of carrying it.
I am very glad they were.
Will the right hon. Gentleman say what the advice of his Department is?
I will tell the right hon. Gentleman quite frankly. The advice of the experts in my Department is that it is essential to maintain a. research industry in chemistry and that, failing the dye making, there must be something comparable in order to safeguard the industry. I say the experts in my Department are not expected to have a knowledge of trade and commerce. That is not their business. They would be the last men in the world to say that it was their business. I also say I must be responsible for policy. If you want your chemical research, pay for it. Do not do it at the expense of the people in Lancashire.
I want to sum up in this way. There has been no tremendous development in research staff. There has been a diminution. There is no danger of this industry, employing 7,000 people, going into extinction if the Act collapses. What is proposed to us is not a compromise but a pistol held to our head—"If you do not do what the House of Commons has decided it ought not to do, we will prevent you keeping expiring Acts on the Statute Book that we know you do not want to lose." I am astonished that, after the political fights in this country for centuries, there should still be anyone in this House who will vote for giving power to another place which literally means that year after year you can never let an Act lapse unless you are prepared to lose all the laws that go in the Expiring Laws Continuance Act. Thirdly, I want to claim that the gentlemen who have signed this report represent more textile workers than all the other bodies combined. There is no question at all about the position of the textile workers.
I claim that the decision of the textile workers of Lancashire is entitled to as much consideration, to put it mildly, as the interests of certain well-known millionaire firms. What I am concerned about principally is the working people of Lancashire. I do not care a brass button about academic discussions on Tariff Reform and Free Trade. What I ask myself is, "Is if to the interest of this country that this Act should be allowed to lapse?", and my answer is clear and definite, "Yes, in my opinion it is." Then I ask myself, "Is it in the interest of this country that another House should have a right to put a pistol to our head and do what literally amounts to pronouncing a threat that, unless we are prepared to obey its behests, it will stop legislation?" On both questions there is no hesitation for a moment on my part. I shall vote for this Bill lapsing, because I believe it ought to lapse, and I shall vote for refusing the Lords Amendment because I do not believe they are right in doing what they are doing.
7.0 p.m.
I hope the House will bear with me for a few moments on this question, because I happen to have been the father of the Act which is now being dealt with, and I take a somewhat personal interest in the child. I desire not to introduce any party heat into the matter, nor indeed to raise any controversial question. It it true, as Mr. Asquith said at the time this Measure was first under discussion, that it involved no question at all of Free Trade or Protection, and he supported its passage upon that ground. I am a little surprised that the right hon. Gentleman should be so anxious to avoid the inquiry that has been proposed. That inquiry is one which I should gladly welcome. No one would suffer disadvantage by time being given to that end. But would the right hon. Gentleman remember, when he complains about the method taken to deal with this matter, namely, under the Expiring Laws Continuance Act, that that method was suggested to our side of the House by the Government themselves. We were told that that was the manner by which to raise this question. If the right hon. Gentleman fears that in the course of next year the other place would be likely to take action which again would embarrass them, he can easily raise it in another way in this House. This is not the only method. There are other ways in which he can raise the matter, and I, for my part, promise him I shall take no action which will do anything to defeat the House having an opportunity to consider it.
May I look for a few moments at the merits of the proposal now made. It is obviously not a party question, because we have had speeches from the Government benches in support of the action which the House of Lords is now suggesting. I am surprised the right hon. Gentleman, who has just spoken, should belittle the progress of the dye industry. The President of the Board of Trade paid the highest possible tribute to the success of the dye-making industry and to the enterprise with which it was carried on, while the right hon. Member for Darwen (Sir H. Samuel) set forth in his speech on. the last occasion as matters beyond controversy the extreme rapidity with which the trade had increased and the success which it had attained. I start from that point of view and not from the controversial attitude which the right hon. Gentleman has taken up. It seems to me that, finding himself in great difficulties in regard to the Measure, he had to take the extreme course of blackguarding a trade which deserves well of the country.
What are the two main grounds on which the proposal to discontinue this Measure is supported? In the first place, it is said—and this was the argument of the President of the Board of Trade—that it has done so well and is in such a strong position that it can afford to do without any further support. Apparently, that is not the view of the right hon. Gentleman. I prefer for this purpose to take the considered, deliberate judgment of the President of the Board of Trade. It is true that this trade has made great strides. It is true it is now supplying 90 per cent, of the requirements of the textile industry of the country, but it has not yet reached that measure of success in a large variety of the grades of dyes, which, for example, the Germans have attained from their longer experience. After all, this Act has only been in effective operation for eight years, and it is amazing the progress which has already been made. Give it a little longer and see how far it will be possible to overtake the German industry in the finer varieties.
The House should keep in mind that, out of five discoveries made in recent times throughout the world, including Germany, America and this country, three of them have been made in this country. Accordingly, one can look forward to great progress being made in these finer aspects of this trade if a little longer time is afforded. I used to play the game of whist, and it was inculcated on me then that there were 20,000 people wandering homeless on the Continent because they did not lead trumps and 40,000 people wandering homeless on the Continent because they did not carry on leading trumps. To complete the success of the Measure embarked upon 10 years ago, you must continue your Measure until the trade is able to defy competition on all counts of the industry.
It is said, too, that it can supply dyes now as cheaply as on the Continent, and that its position is unassailable. May I remind the President of the Board of Trade of this particular factor, that in trade there is all the difference in the world between having an assured market for your full product and having to enter into competition with other people who do their best to undercut you. Let me remind the right hon. Gentleman who has just spoken of what the textile trade said when I was dealing with this matter to begin with. Perhaps the experience of that time will enlighten him as to what we have to look forward to now. Let him remember that it was the textile trade that was saved from, destruction by the institution of the dye industry in this country and that they were the people who were most seriously affected by the difficulty of obtaining dyes. This is what they said then: gated by the decision of the Courts, the Germans dumped £7,000,000 of dyes into the country and absolutely ruined our industry for a considerable time. If we are to be exposed to action of that kind, it is quite certain the industry will be greatly harmed.
I turn to the position of the textile trade. This is a most ungrateful Motion by the right hon. Gentleman on their behalf. I would again remind him of something which was said when we were considering the institution of this Measure:
It is suggested that the export trade has gone down because of this form of prohibition and licence and that there has been difficulty in obtaining the dyes they require. That has already been analysed by previous speakers. So far as the export trade is concerned, it is perfectly clear that the exports of textile materials in which dyes are included has suffered much less than the export of materials in which no dyes are concerned at all. That is true to a considerable extent in price, because, while the dyestuffs themselves have gone up in price, they have not gone up so much as dyed and printed textiles have gone up. The textile trades have been exacting a higher price for their cloth than have the dyemakers for their dyes. In these circumstances, we shall be unwise, if, in a moment of prejudice and of forgetfulness of the difficulties of the past, we run any risk with an industry which has built up a great position at the present time and which will be still greater in the future if we only permit it a little more time in which to solidify their trade. After all, what is it that we are asking? One year's continuance of this Act to be given in order that an impartial investigation may be made. Can any unprejudiced person refuse that? The risks we run are far too great for us to refuse.
I want to give, briefly, the reasons why my hon. Friends, who are immediately associated with me on these benches, cannot support the Government in its conclusions. Some of us feel that the lapsing of this Act would be a very great misfortune to this country, because we have become convinced that, if Great Britain is to survive as an industrial nation, it will be primarily and above all by the development of science and by the application of science throughout our industrial and economic system, and it seems to us that the action, which the Government have taken now, is going to attack the interests of science both directly and indirectly. It is going to attack them directly quite obviously, and is is going to jeopardise the continuance of scientific research in this key field. It seems to be suggested that, if it is proved that a continuance of this research cost something—and I do not think it has been proved—then it is proved that it should not be continued. That research is worth a very great deal even if it can be proved that it is to-day costing the community something to maintain that research. Whether the cost is being met in the best possible way by this Act, it is not incumbent upon us to show, but we do suggest that the Government, before allowing such an Act as this to lapse, should at any rate have produced some alternative by which this essential scientific work might be carried on.
This Act, as has been pointed out by the hon. Member for Central Leeds (Mr. Denman), was an attempt to apply science in the sphere of economics, an attempt to apply scientific regulation to trade and to our economic system. I always supposed that was the essence of the Socialist view of industry, that the application of Socialism was the application of scientific regulation to industrial matters. It seems strange that one of the very few Statutes of that character on the Statute Book is being allowed to lapse by a Socialist Government. We have to look round the world to-day and see whether we consider the present state of the world is one in which we can allow such regulation and such planning of our economic system to lapse. Is the world to-day so well ordered and so well regulated and on such a stable basis that we can afford to allow regulations of that sort to lapse? That is a very general way of asking whether we are going to have an organised selling campaign in this country of foreign dyestuffs, which will be sold not on economic grounds, not according to economic prices, but for special reasons in the conditions which exist in the world to-day?
We know, of course, that, if these dyestuffs come from anywhere, they will come from Germany, and we must look at the state of Germany and of Europe to-day. We must make up our minds whether Germany is in a position to do what we call dumping; that is, to sell in this country without regard to the criterion of an economic price. No one who looks at the state of Europe to-day can possibly doubt that Germany will not only attempt to dump, but will be forced to dump, dyestuffs, and, as a matter of fact, any other product she can lay her hands on for export. By the operation of the Young Plan and of the Reparation settlement, Germany to-day is forced to export every single commodity which she can lay her hands on. It is certain that the pressure of finding money for Reparation payments will drive Germany to export any commodity she can, almost at any cost. It is rather a strange reflection that it should be the present Chancellor of the Exchequer, who at the very beginning of his period of office should do something at the Hague to increase those burdens and increase that pressure and who to-day is refusing to have anything to do with the continuance of regulations which would prevent that pressure having a disastrous effect upon this market.
The second consideration is: Will Germany be in a position to dump goods into this market and to sell dyestuffs below the cost of production and below the selling price in Germany? If she had not the organisation to enable her to do so, if German industry was badly organised, and was on a small scale, and was carried out by a large number of independent producers, there might not be a very serious or a very long period of dumping. A number of small independent producers are, obviously, unable to sell at an economic price for very long. What is the position? You have in Germany a more highly organised dyestuffs industry than perhaps in any other country in the world. You have in the Interessen Gemeinschaft perhaps the biggest combine and trust which exists in the world to-day. It is a nation-wide organisation backed by the German Government and able to carry on an export selling campaign, without any regard to economic considerations, over a very long period. The creation of vast trusts and organisations of that sort in the world has entirely cut across the economics of the classical textbooks on Free Trade. I suggest that the Interessen Gemeinschaft was never dreamt of in Mr. Cobden's philosophy. The extraordinary international system created by Reparations and the necessity of foreign countries to export at all costs have entirely falsified any hopes we may have had of a Free Trade world in which these things would be regulated on purely economic considerations. The world to-day is departing from that Free Trade state, and it is useless for us to attempt to go back to it. It seems to me that it would almost be certain to create disaster in our dye industry, and, in the long run, do absolutely no good to our textile industry.
The Secretary of State for War has made great play of the fact that only 7,000 men are employed in the dye industry, while 600,000 are employed in the textile industry. He seemed to regard that as a proof that the refusing of this Act would give employment. I would ask him: What good is it if he puts 7,000 out of work and does not put any of the 600,000 into work? After all, the arithmetical case by itself is not as simple as he seems to suppose. On broader grounds it is very strange that some of us sitting on these benches should see the Government returning to the most rigid principles not of the Liberalism of to-day but of the Liberalism of 50 years ago. It is not that they are unwilling to introduce any new principle of regu- lation, of planning or of social control—we have long ago given up the hope of any progress in a Socialist direction—but actually that they are showing a ruthless determination to sweep away any vestiges of social control which have found a way on to the Statute Book.
It is an amazing action on the part of the first Socialist Chancellor of the Exchequer in this country. It is, perhaps, rather an historical irony that the great classical economists, the Ricardo's and others of the last century have had to await the arrival of a Socialist Government into power to see their theories applies with an absolutely ruthless rigidity. As a matter of fact, I do not think that it is quite fair to those economists to say that they would have supported the action of the Chancellor of the Exchequer. I think that they would have thought that he was rather an extreme and amateurish disciple of their views who was carrying them a great deal further than they would have gone themselves. It is sometimes the case that these efforts of laissez faire go a great deal further than they were intended to go. [ Interruption .] If the hon. Member can find the least trace of Socialism in any action which the present Chancellor of the Exchequer has taken either now or hereafter he will have to discover it with a microscope.
If the present Government and the Chancellor of the Exchequer go on with their present policy of a rigid laissez faire of sweeping away all the old regulations of social control which exist in our system to-day it will, in view of the present world situation and the present condition of trade in this country, have a disastrous effect upon working-class standards in this country. That can be the only effect. If you have a policy of rigid laissez faire here you will have it applied rigidly to your wage rates and to your working-class conditions. It is the only possible logical end of the economic policy which the Government have adopted, and the threat which is becoming so serious to working-class conditions cannot but have a serious effect upon industry as well.
I think that there is one section of the community whose views are worth considering, particularly as it is their interests which are vitally affected. They have the impertinence to suggest that if you let them down you will be letting the country down. I refer particularly to the scientific workers of this country. There is no responsible body of scientific opinion in this country which has not condemned the action of the Government in withdrawing, or in not renewing, the Dyestuffs Act. [An HON. MEMBER: "Rubbish."] I should like to know if there is any responsible scientific body in this country which has suggested that it will not be a national disaster to remove the protection which is given to the dyestuffs industry under this Act? Some of those bodies at least have made their views very well known to the President of the Board of Trade and even to the Prime Minister.
The President of the Board of Trade is well aware of the interest which was taken in the subject of dyestuffs at the last meeting of the British Association held at Bristol last September. Contributing to the discussion on the possible effect of the lapse of the Dyestuffs Act was a large number of most eminent scientists in this country, including several of the most eminent organic chemists, among whom was the head of one of our great State research institutions. They all suggested that it would be an act of incredible folly on the part of the Government if they withdrew the protection afforded to the chemical industry under this Act. I do not intend to give their views in extenso . They can be obtained from the various scientific bodies or from the British Association for the Advancement of Science. I should like to say, however, that what they said then has been substantiated since by the heads of the organic chemical departments of practically every university in this country—the provincial universities and the universities of Oxford and Cambridge. One of these is Professor Robinson, who has had a most distinguished career, not only at the University of St. Andrews, and at Manchester and London, but at Oxford, where he has taken the William Perkins Chair. He was also, during the war, intimately associated with the fundamental work done in the dyestuffs industry at Manchester and at Huddersfield. You cannot ignore the opinions of men of that type.
You may feel inclined to ignore the opinions of the millionaires to whom the right hon. Gentleman referred, but you cannot afford to ignore the almost unanimous opinion of the scientific world upon this matter. You occasionally find a man of genius who will make a great fundamental discovery, a man like Faraday, for instance, upon whom the whole electrical industry of the country and of the world is dependent, Faraday also discovered benzol and started the whole of the research to which Hoffman aid Perkins afterwards contributed. Men like those occur once in a century or once in two or three centuries, and all the work afterwards is the labour of men of lesser light, men who work in the laboratories of research institutions and in the universities, and, perhaps, even in a works laboratory carrying on experimentation on a small scale and then passing on to large-scale experimentation, in which, perhaps, you have special processes, and the whole thing has to be worked with minutiæ and a complete regard to economic facts.
This is the process of the application of science to industry, and in that process Germany has not been unfortunate in the production of genius. It has produced men from whose labours great industries have been built, but it was this country which gave a lead to the whole world. We started after Perkins and excelled for 10 or 15 years, and then Germany, realising the potentialities of this industry—the German Government being far more far-sighted than the Government of this country—applied millions of pounds to organic chemical research and thereby built up the organic chemical research of the German industrialist. It was not primarily the German industrialist who achieved this. The great product of synthetic indigo was produced in the laboratory, first in 1880, by Bayer, a name famous in the world not only for chemical research in dyes, but in organic chemistry generally, particularly in connection with sleeping sickness. That discovery was made in the laboratory in 1808, but it was not until 17 years later, after millions of pounds had been spent upon it, that it
was put upon the market and killed our natural indigo industry. I am not blaming the late Lord Moulton, but is it suggested that when a country like Germany has 11,000 patent processes, we, starting not from scratch but with a scratch staff, who had never applied themselves to practice in the laboratories, could in 10 years put the industry into such a condition that it could compete with the world?
Immediately after the War broke out the whole country was screaming for scientific workers, who did not exist. We are told that hundreds of scientific workers who were taken into industry have been dispensed with. They have not been dispensed with. The number of scientific workers is increasing, and it is a very good thing for the industries of this country that that is so. The number of scientific workers, highly qualified men, in the universities and industry is increasing. The demand for scientific workers is great, and they have been trained in the dyestuffs laboratories of this country. It was a big industry in this country which started, shall I say, the first organised scientific team research work. They had inducements. These men were being offered the greatest inducements to take their brains and their capacities into other industries. That is why there has been a definite decrease in the number of fully qualified scientists in certain industries in this country. It would be the best thing in the world for the Government to change their mind, even at the last moment, and to give the additional year, which will be a reasonable period, in order that an inquiry can be held. Although I regret it very much, if the Government do not change their mind I shall have to go into the Lobby against them.
Question put, "That this House doth disagree with the Lords in the said Amendment."
The House divided: Ayes, 244; Noes, 238.
Division No. 83.] AYES. [7.33 p.m. Adamson, Rt. Hon. W. (Fife, West) Arnott, John Bennett, William (Battersea, South) Adamson, W. M. (Staff., Cannock) Attlee, Clement Richard Benson, G. Addison, Rt. Hon. Dr. Christopher Ayles, Walter Bentham, Dr. Ethel Aitchison, Rt. Hon. Craigie M. Baker, John (Wolverhampton, Bilston) Bondfield, Rt. Hon. Margaret Alexander, Rt. Hon. A. V. (Hillsbro') Barnes, Alfred John Bowen, J. W. Alpass, J. H. Barr, James Bowerman, Rt. Hon. Charles W. Ammon, Charles George Bellamy, Albert Broad, Francis Alfred Angell, Norman Benn, Rt. Hon. Wedgwood Bromfield, William Bromley, J. Jones, T. I. Mardy (Pontypridd) Riley, F. F. (Stockton-on-Tees) Brooke, W. Jowitt, Sir W. A. (Preston) Ritson, J. Brothers, M. Kelly, W. T. Romeril, H. G. Brown, Ernest (Leith) Kennedy, Thomas Rosbotham, D. S. T. Brown, Rt. Hon. J. (South Ayrshire) Kinley, J. Rowson, Guy Buchanan, G. Knight, Holford Salter, Dr. Alfred Burgess, F. G. Lansbury, Rt. Hon. George Samuel, Rt. Hon. Sir H. (Darwen) Buxton, C. R. (Yorks. W. R. Elland) Lathan, G. Sanders, W. S. Caine, Derwent Hall- Law, Albert (Bolton) Sawyer, G. F. Cape, Thomas Law, A. (Rossendale) Scott, James Carter, W. (St. Pancras, S. W.) Lawrence, Susan Scurr, John Charleton, H. C. Lawrie, Hugh Hartley (Stalybridge) Shakespeare, Geoffrey H. Chater, Daniel Lawson, John James Shaw, Rt. Hon. Thomas (Preston) Cluse, W. S. Lawther, W. (Barnard Castle) Shepherd, Arthur Lewis Clynes, Rt. Hon. John R. Leach, W. Sherwood, G. H. Cocks, Frederick Seymour Lee, Frank (Derby, N. E.) Shield, George William Compton, Joseph Lees, J. Shiels, Dr. Drummond Cove, William G. Lloyd, C. Ellis Shillaker, J. F. Daggar, George Logan, David Gilbert Shinwell, E. Dallas, George Longbottom, A. W. Short, Alfred (Wednesbury) Dalton, Hugh Longden, F. Simmons, C. J. Davies, Rhys John (Westhoughton) Lowth, Thomas Sinkinson, George Day, Harry Lunn, William Sitch, Charles H. Dukes, C. Macdonald, Gordon (Ince) Smith, Ben (Bermondsey, Rotherhithe) Duncan, Charles MacDonald, Rt. Hon. J. R. (Seaham) Smith, Frank (Nuneaton) Ede, James Chuter MacDonald, Malcolm (Bassetlaw) Smith, H. B. Lees- (Keighley) Edmunds, J. E. McElwee, A. Smith, Rennie (Penistone) Edwards, C. (Monmouth, Bedwellty) McEntee, V. L. Smith, Tom (Pontefract) Edwards, E. (Morpeth) McKinlay, A. Smith, W. R. (Norwich) Egan, W. H. MacLaren, Andrew Snell, Harry Elmley, Viscount Maclean, Sir Donald (Cornwall, N.) Snowden, Rt. Hon. Philip Foot, Isaac Maclean, Nell (Glasgow, Govan) Snowden, Thomas (Accrington) Freeman, Peter Malone, C. L'Estrange (N'thampton) Sorensen, R. Gardner, B. W. (West Ham, Upton) Mander, Geoffrey le M. Stamford, Thomas W. Gibbins, Joseph Mansfield, W. Stephen, Campbell Gibson, H. M. (Lancs, Mossley) Marcus, M. Strauss, G. R. Gill, T. H. Markham, S. F. Sullivan, J. Glassey, A. E. Marley, J. Sutton, J. E. Gossling, A. G. Marshall, Fred Taylor, R. A. (Lincoln) Gould, F. Mathers, George Taylor, W. B. (Norfolk, S. W.) Graham, D. M. (Lanark, Hamilton) Matters, L. W. Thorne, W. (West Ham, Plaistow) Graham, Rt. Hon. Wm. (Edin., Cent.) Messer, Fred Tillett, Ben Gray, Milner Middleton, G. Tinker, John Joseph Greenwood, Rt. Hon. A. (Coine) Mills, J. E. Tout, W. J. Grenfell, D. R. (Glamorgan) Milner, Major J. Townend, A. E. Griffith, F. Kingsley (Middlesbro' W.) Montague, Frederick Trevelyan, Rt. Hon. Sir Charles Griffiths, T. (Monmouth, Pontypool) Morgan, Dr. H. B. Vauqhan, D. J. Groves, Thomas E. Morley, Ralph Viant, S. P. Grundy, Thomas W. Morris, Rhys Hopkins Walkden, A. G. Hall, G. H. (Merthyr Tydvil) Morrison, Herbert (Hackney, South) Walker, J. Hall, Capt. W. G. (Portsmouth, C.) Morrison, Robert C. (Tottenham, N.) Wallace, H. W. Hamilton, Mary Agnes (Blackburn) Mort, D. L. Watkins, F. C. Hardie, George D. Moses, J. J. H. Watson, W. M. (Dunfermilne) Harris, Percy A. Muff, G. Wellock, Wilfred Hastings, Dr. Somerville Naylor, T. E. Welsh. James (Paisley) Haycock, A. W. Newman, Sir R. H. S. D. L. (Exeter) Welsh, James C. (Coatbridge) Hayday, Arthur Noel Baker, P. J. West, F. R. Hayes, John Henry Noel-Buxton, Baroness (Norfolk, N.) Westwood, Joseph Henderson, Thomas (Glasgow) Oldfield, J. R. White, H. G. Henderson, W. W. (Middx., Enfield) Oliver, George Harold (Ilkeston) Whiteley, Wilfrid (Birm., Ladywood) Herriotts, J. Owen, H. F. (Hereford) Whiteley, William (Blaydon) Hirst, G. H. (York W. R. Wentworth) Paling, Wilfrid Williams, David (Swansea, East) Hirst, W. (Bradford, South) Palmer, E. T. Williams, Dr. J. H. (Llanelly) Hoffman, P. C. Perry, S. F. Williams, T. (York. Don Valley) Hollins, A. Peters, Dr. Sidney John Wilson, C. H. (Sheffield, Attercliffe) Hopkin, Daniel Pethick-Lawrence, F. W. Wilson, J. (Oldham) Hudson, James H. (Huddersfield) Phillips, Dr. Marion Wilson, R. J. (Jarrow) Isaacs, George Picton-Turbervill, Edith Winterton, G. E. (Leicester, Loughb'gh) Jenkins, W. (Glamorgan, Neath) Pole, Major D. G. Wood, Major McKenzie (Banff) John, William (Rhondda, West) Potts, John S. Young, R. S. (Islington, North) Johnston, Thomas Quibell, D. J. K. Jones, F. Llewellyn (Flint) Raynes, W. R. TELLERS FOR THE AYES. —— Jones, J. J. (West Ham, Silvertown) Richards, R. Mr. Allen Parkinson and Mr. Thurtle. Jones, Rt. Hon. Leif (Camborne) Richardson, R. (Houghton-le-Spring) Jones, Morgan (Caerphilly) Riley, Ben (Dewsbury)
NOES. Acland-Troyte, Lieut.-Colonel Aske, Sir Robert Baldwin, Rt. Hon. Stanley (Bewdley) Albery, Irving James Astor, Maj. Hn. John J. (Kent, Dover) Balfour, George (Hampstead) Allen, Sir J. Sandeman (Liverp'l., W.) Astor, Viscountess Balfour, Captain H. H. (I. of Thanet) Alien, W. E. D. (Belfast, W.) Atholl, Duchess of Balniel, Lord Amery, Rt. Hon. Leopold C. M. S. Atkinson, C. Beamish, Rear-Admiral T. P. H. Ashley, Lt.-Col. Rt. Hon. Wilfrid W. Baillie-Hamilton, Hon. Charles W. Beaumont, M. W. Bellairs, Commander Carlyon Fremantle, Lieut.-Colonel Francis E. Ormsby-Gore, Rt. Hon. William Berry, Sir George Galbraith, J. F. W. Owen, Major G. (Carnarvon) Bevan, S. J. (Holborn) Ganzoni, Sir John Peake, Capt. Osbert Birchall, Major Sir John Dearman Gault, Lieut.-Col. Andrew Hamilton Percy, Lord Eustace (Hastings) Bird, Ernest Roy Gibson, C. G. (Pudsey & Otley) Pilditch, Sir Philip Boothby, R. J. G. Gilmour, Lt.-Col. Rt. Hon. Sir John Power, Sir John Cecil Bourne, Captain Robert Croft. Glyn, Major R. G. C. Pownall, Sir Assheton Bowater, Col. Sir T. Vansittart Gower, Sir Robert Pybus, Percy John Bowyer Captain Sir George E. W. Graham, Fergus (Cumberland, N.) Ramsay, T. B. Wilson Boyce, Leslie Grattan Doyle sir N. Ramsbotham, H. Bracken, B. Greaves-Lord, Sir Walter Rathbone, Eleanor Braithwaite, Major A. N. Grenfell, Edward C. (City of London) Rawson, Sir Cooper Brass, Captain Sir William Gretton, Colonel Rt. Hon. John Reid, David D. (County Down) Briscoe, Richard George Guinness, Rt. Hon. Walter E. Remer, John R. Brown, Brig.-Gen. H. C. (Berks, Newb'y) Hacking, Rt. Hon. Douglas H. Reynolds, Col. Sir James Buchan, John Hall, Lieut.-Col. Sir F. (Dulwich) Richardson, Sir P. W. (Sur'y, Ch'ts'y) Buckingham, Sir H. Hamilton, Sir George (Ilford) Roberts, Sir Samuel (Ecclesall) Bullock, Captain Malcolm Hammersley, S. S. Rodd, Rt. Hon. Sir James Rennell Burton, Colonel H. W. Hannon, Patrick Joseph Henry Ross, Major Ronald D. Butler, R. A. Hartington, Marquess of Rothschild, J. de Butt, Sir Alfred Harvey, Major S. E. (Devon, Totnes) Ruggles-Brise, Lieut.-Colonel E. A. Cadogan, Major Hon. Edward Haslam, Henry C. Russell, Alexander West (Tynemouth) Campbell, E. T. Henderson, Capt. R. R. (Oxf'd, Henley) Salmon, Major I. Carver, Major W. H. Heneage, Lieut.-Colonel Arthur P. Samuel, A. M. (Surrey, Farnham) Castle Stewart, Earl of Herbert, Sir Dennis (Hertford) Samuel, Samuel (W'dsworth, Putney) Cautley, Sir Henry S. Hills, Major Rt. Hon. John Waller Sandeman, Sir N. Stewart Cayzer, Sir C. (Chester, City) Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Sassoon, Rt. Hon. Sir Philip A. G. D. Cayzer, Maj. Sir Herbt. R. (Prtsmth, S.) Hore-Belisha, Leslie Savery, S. S. Cazalet, Captain Victor A. Horne, Rt. Hon. Sir Robert S. Shepperson, Sir Ernest Whittome Chadwick, Capt. Sir Robert Burton Howard-Bury, Colonel C. K. Simon, E. D. (Manch'ter, Withington) Chamberlain, Rt. Hn. Sir J. A. (Birm., W.) Hudson, Capt. A. U. M. (Hackney, N.) Sinclair, Col. T. (Queen's U., Belfst) Chamberlain, Rt. Hon. N. (Edgbaston) Hurd, Percy A. Skelton, A. N. Chapman, Sir S. Hutchison, Maj.-Gen. Sir R. Smith, Louis W. (Sheffield, Hallam) Christie, J. A. Iveagh, Countess of Smith, R. W. (Aberd'n & Kinc'dine, C.) Church, Major A. G. Jones, Sir G. W. H. (Stoke New'gton) Smith-Carington, Neville W. Churchill, Rt. Hon. Winston Spencer Jones, Henry Haydn (Merioneth) Smithers, Waldron Clydesdale, Marquess of Kedward, R. M. (Kent, Ashford) Somerville, A. A. (Windsor) Cobb, Sir Cyril Kindersley, Major G. M. Somerville, D. G. (Willesden, East) Cockerill, Brig.-General Sir George Knox, Sir Alfred Southby, Commander A. R. J. Colfox, Major William Philip Lamb, Sir J. Q. Spender-Clay, Colonel H. Colman, N. C. D. Lambert, Rt. Hon. George (S. Molton) Stanley, Lord (Fylde) Colville, Major D. J. Lane Fox, Col. Rt. Hon. George R. Stanley, Maj. Hon. O. (W'morland) Courtauld, Major J. S. Leighton, Major B. E. P. Steel-Maitland, Rt. Hon. Sir Arthur Courthope, Colonel Sir G. L. Lewis, Oswald (Colchester) Stewart, W. J. (Belfast South) Cowan, D. M. Llewellin, Major J. J. Stuart, Hon. J. (Moray and Nairn) Cranborne, Viscount Locker-Lampson, Rt. Hon. Godfrey Sueter, Rear-Admiral M. F. Croft, Brigadier-General Sir H. Long, Major Hon. Eric Taylor, Vice-Admiral E. A. Crichton-Stuart, Lord C. Lymington, Viscount Thomas, Major L. B. (King's Norton) Crookshank, Cpt. H. (Lindsey, Gainsbro) Macdonald, Capt. P. D. (I. of W.) Thomson, Sir F. Croom-Johnson, R. P. Macpherson, Rt. Hon. James I. Tinne, J. A. Cunliffe-Lister, Rt. Hon. Sir Philip Maitland, A. (Kent, Faversham) Titchfield, Major the Marquess of Dalkeith, Earl of Makins, Brigadier-General E. Train, J. Dalrymple-White, Lt.-Col. Sir Godfrey Margesson, Captain H. D. Tryon, Rt. Hon. George Clement Davidson, Major-General Sir J. H. Marjoribanks, Edward Turton, Robert Hugh Davies, E. C. (Montgomery) Mason, Colonel Glyn K. Vaughan-Morgan, Sir Kenyon Davies, Maj. Geo. F. (Somerset, Yeovil) Meller, R. J. Wallace, Capt. D. E. (Hornsey) Davison, Sir W. H. (Kensington, S.) Merriman, Sir F. Boyd Ward, Lieut.-Col. Sir A. Lambert Dawson, Sir Philip Mitchell, Sir W. Lane (Streatham) Wardlaw-Milne, J. S. Dixey, A. C. Mitchell-Thomson, Rt. Hon. Sir W. Warrender, Sir Victor Dixon, Captain Rt. Hon. Herbert Mond, Hon. Henry Waterhouse, Captain Charles Duckworth, G. A. V. Moore, Sir Newton J. (Richmond) Wayland, Sir William A. Dugdale, Capt. T. L. Moore, Lieut.-Colonel T. C. R. (Ayr) Wells, Sydney R. Dudgeon, Major C. R. Morrison, W. S. (Glos., Cirencester) Williams, Charles (Devon, Torquay) Edge, Sir William Morrison-Bell, Sir Arthur Clive Windsor-Clive, Lieut.-Colonel George Edmondson, Major A. J. Muirhead, A. J. Winterton, Rt. Hon. Earl Elliot, Major Walter E. Nathan, Major H. L. Withers, Sir John James England, Colonel A. Newton, Sir D. G. C. (Cambridge) Wolmer, Rt. Hon. Viscount Erskine, Lord (Somerset, Weston-s-M.) Nicholson, O. (Westminster) Womersley, W. J. Everard, W. Lindsay Nicholson, Col. Rt. Hn. W. G. (Ptrsf'ld) Wood, Rt. Hon. Sir Kingsley Falle, Sir Bertram G. Nield, Rt. Hon. Sir Herbert Wright, Brig.-Gen. W. D. (Tavlst'k) Fielden, E. B. O'Connor, T. J. Young, Rt. Hon. Sir Hilton Fison, F. G. Clavering Oliver, P. M. (Man., Blackley) Ford, Sir P. J. Oman, Sir Charles William C. TELLERS FOR THE NOES. —— Forestier-Walker, Sir L. O'Neill, Sir H. Major Sir George Hennessy and Sir George Penny.
CLAUSE 1.—(Continuance of Acts in Schedule)
Lords Amendment: In page 1, line 19, leave out "Part I." and insert "Parts I. and III."
I beg to move, "That this House doth disagree with the Lords in the said Amendment."
This Amendment is consequential.
Question, "That this House doth disagree with the Lords in the said Amendment," put, and agreed to.
Schedule
Lords Amendment: In page 5, line 11, at the end, insert:
("PART III. 1. 2. 3. 4. Session and Chapter. Short Title. How far continued. Amending Acts. (16) 10 & 11 Geo. 5. c. 77. The Dyestuffs (Import Regulation) Act, 1920. The whole Act.") —
Motion made, and Question, "That this House doth disagree with the Lords in the said Amendment," put, and agreed to.—[ Mr. W. Graham .]
Committee appointed to draw up Reasons to be assigned to the Lords for disagreeing to their Amendments to the Bill.
Committee nominated of Sir Philip Cunliffe-Lister, Mr. William Graham, Mr. Ramsbotham, Sir Herbert Samuel and Mr. William Whiteley.
Three to be the quorum.—[ Mr. William Graham .]
To withdraw immediately.
Reason for disagreeing to Lords Amendments reported, and agreed to.
To be communicated to the Lords.—[ Mr. W. Graham .]
National Health Insurance (Prolongation of Insurance) Bill
Order for Second Reading read.
I beg to move, "That the Bill be now read a Second time."
As I explained to the Committee when speaking on the Money Resolution, this Bill proposes to retain in insurance for a further year a number of people who would otherwise fall out of insurance at the end of this year, owing to unemployment. During the first period of unemployment after the War, the then Coalition Government decided that, as unemployment stood at 1,250,000, the Government would not permit people to suffer from prolonged unemployment, and they increased the benefits of National Health Insurance. In 1921, the first Prolongation of Insurance Bill was carried and it was continued from year to year until 1928 when, in the Insurance Act of that year, prolongation of insurance was brought to an end. It may have been thought that the economic prospects of the time justified that course of action. My predecessor permitted himself a little latitude in order to prolong the Act further, should necessity arise. Last year these people would have been excluded from health insurance and from pension rights. The question was considered, and it was quite evident that a substantial number of them had not done a day's work in the last two or three years, and would be excluded from benefit in circumstances in which it was quite impossible for them to continue as voluntary contributors. I took what powers were given under the Act of 1928 to prolong by regulation the period of insurance for these people for a further year. Those powers are now exhausted, and if the situation is to be rectified it can only be done by legislation.
The situation to-day is even more urgent than it was in 1921, when the Government of the day were concerned only with the continuance of Health Insurance benefit. To-day, with old age pensions, widows' pensions, orphans' allowances, as well as health insurance, it is infinitely more serious if a man's insurance rights are exhausted, because pension rights for himself and his widow go as well. Recent experience has shown that the persons who most need benefit are those who have suffered longest from unemployment, and are, in consequence, somewhat enfeebled by malnutrition. To strike off men at that moment when, after a period of unemployment, they obviously cannot look after themselves, and deprive them of all medical benefit and cash benefits, seems to me to be contrary to all reason. Therefore, we decided to continue these people in their rights.
It is suggested that there may be in this the beginning of some serious departure from insurance practice, the beginning of a slippery slope which is going to end with the Health Insurance Fund in deficit, and in a situation similar to that we have had in the case of unemployment insurance. That, of course, is the wildest possible exaggeration. What we are doing is really to maintain the insurance principle, but instead of a person paying the insurance contribution himself, we are going to pay it for him. Definite contributions will be made by the State in lieu of those which would come from the insured persons themselves. It seemed quite clear that we could not again ask the approved societies to shoulder these burdens. During the present year they have shouldered burdens, but times are more difficult for them now. Serious unemployment has depleted their reserves, and the reduction of the State grant to health insurance which followed from the Economy Act, 1926, passed by the late Government, has added to their difficulties. I was not in the least surprised when the approved societies said, "We really cannot shoulder these burdens ourselves." All things considered, we realised that there was only one pocket to which we could look to pay the contributions that ought to be payable in the circumstances, and therefore we took the responsibility of making that payment. We are paying 36 contributions in the year 1931, in respect of all those persons. Normally, as I explained when moving the Money Resolution, one would pay 40 contributions, but as a number of these people will not come in until half-way through the year, and for other reasons outlined in the White Paper, we have come to the conclusion that 36 would be a very safe number, and rather on the generous side.
It is almost impossible to say exactly how many people are affected by the Bill. I have heard most extravagant statements made about "hundreds of thousands." Remember that you are dealing only with people who have not had a single day's work for 2½ years or more and that therefore the number is limited. We have allowed pretty wide limits, somewhere between 60,000 and 100,000. My own view is that 100,000 is much too high a figure, and that even the middle figure of 80,000 may prove to be too high. From what particulars we have been able to gather, we think that those figures more or less represent the number who would come within the provisions of the Bill. If we pay their contributions as has been suggested, the cost will be between £80,000 and £130,000, say, roughly, £100,000. In addition to that we shall continue to pay the State contributions for these persons, as would be paid by the State if the persons were paying their own contributions. The cost of that, we imagine, will be between £14,000 and £24,000 on the highest figures. It will be seen that the sum involved is not very high.
I attach much more importance to the pension side than I do to the health insurance side. It would be very sad ii these people, in the circumstances in which they are placed to-day, lost for ever their right to old-age pensions, or the rights in regard to pensions for their widows. The prolonged period of trade depression has undoubtedly had a broad, general effect on the health of the people. I feel, in these circumstances, that there can be no real difference of opinion in the House, and I hope that it will be possible for us unanimously to agree to the Clauses of the Bill without undue debate.
The right hon. Gentleman has told the House that this Bill is of importance to a number of insured persons, and indeed it is, but it is of importance also to the approved societies and to this House which established the system of national health insurance some years ago. Those of us who sit on this side of the House think it is only right and proper that Parliament should devote some short time to a consideration of the proposals of this Bill, and should see exactly what they mean and in what direction we are going. I know that the right hon. Gentleman will not think I speak on personal grounds when I say that I take considerable exception to the way in which this proposal has been brought forward, both so far as the approved societies and the House of Commons are concerned. When speaking on this matter the other day, the right hon. Gentleman was pressed to say why he was bringing forward this proposal on one of the very last days of this Session, and he replied by referring to the complexity of the problem. He said that that was the reason why the matter had been delayed so long.
Many hon. Gentlemen here are connected with approved society administration and know that the position of these insured persons has been a subject of constant inquiry by approved societies for many months. They have been pressing the right hon. Gentleman with natural anxiety that he should say exactly what he was going to do in this direction. Various deputations have waited upon him from the approved societies, and some considerable time ago the right hon. Gentleman, in reply to one deputation, said that he agreed that the position of persons who, because of prolonged unemployment, might fall out of insurance at the end of the present year, required urgent consideration, especially from the point of view of possible loss of pension rights. Yet the extraordinary thing about it—and on this we ought to have a little more explanation as I cannot think that it has been due to mere delay and oversight on the part of the right hon. Gentleman—is that the meeting with the approved societies was to be held on the 3rd December, and on the day before, for some reason that was not explained, the meeting was suddenly cancelled and the consultation with the approved societies was not held until the 10th of this month, although the matter had to be dealt with by the end of the year.
8.0 p.m.
This House has been put in an equally unfortunate position by the presentment of the Bill at this time. The hon. Member for Camlachie (Mr. Stephen) reminded the House that it was in May he first raised this question. Many hon. Members in other parts of the House have constantly brought this matter before the House of Commons, and yet, as I know personally, when the remaining weeks business of this Session was being discussed through the usual channels, not a word was said about any intention of bringing forward this Bill, and the Prime Minister, in his announcement in reply to the usual question by the Leader of the Opposition, made no reference to it at all—a most inexplicable state of affairs when, as the right hon. Gentleman the Minister of Health stated the other day, the matter was one of some urgency requiring the consideration of this House. There is also some reason that we should complain not only from the party point of view, but from the point of view of the House generally, that the White Paper was issued only on Friday last, and to-day we have the Bill presented to us for the first time after the passing of the Financial Resolution.
Will the right hon. Gentleman explain why a Bill must necessarily be delayed till the Financial Resolution is passed?
It is the practice of the House that when a Bill is based on a Financial Resolution, it is not customary to present the Bill until the necessary Resolution has been passed. I have made very considerable complaint that these proposals were not actually presented to us until Friday, and all Members were then put in a position of considerable difficulty, because the rights of these insured people were in danger. It was very difficult indeed to secure adequate discussion for the Bill, and at the same time not to be open to a charge of disregard for the position of the people who are affected. It is a very unfair position in which to put the House, and I hope that we shall have some reason given why Members have been put in this position. I cannot think it could have been due to the oversight or delay of the right hon. Gentleman. I think he must have had this matter constantly before him. I cannot understand why it is that these proposals are put forward in this way at the very last moment. It is a matter of moment for these people who are affected owing to the terrible unemployment position. It is true that the provisions of this Bill provide for a prolongation of the rights to sickness benefit and medical benefit, and that certain pensions benefit is extended in some cases for one year and in others, where the rights do not expire until June, 1931, for a period of six months only. It is true also there are not a very large number of people affected by these proposals when you compare them with the large number insured under the national insurance scheme. The White Paper says there are some 60,000 to 100,000 who may be involved, some one-half per cent., I suppose, of the insured population, and the number who may qualify and obtain benefit under the provisions of this Bill must, obviously, be very much smaller still.
It is only fair to say, in the consideration of this scheme, that there is not a very large number of people affected, and the right hon. Gentleman might have said that as there are only a small number of people affected we might pass this Bill and give it no further consideration. I do not take that view. It is also right that it should be known that the benefit of this Bill to these people means only half their ordinary insurance benefit. There is no proposal being made to continue by payment by the State the full insurance benefits, and the maximum amount of benefit I understand which the insured man may receive under these proposals is 7s. 6d. per week, and in the case of a woman 6s. per week. That is to say the largest amount of cash benefit they can receive in sickness benefit. It is also important that we should note they may receive very much less under these proposals, and it might be, both in the case of a man and a woman, that they would be receiving only something like 3s. 9d. a week. Do not let us be deceived by the extent of these proposals either as regards the number of people affected or that large payments are going to be made to them. So far as cash benefit in case of sickness is concerned, they are very small sums indeed. It is right also, as the right hon. Gentleman reminded the House, that the position of this class of insured persons has been a matter of constant anxiety to those who have been responsible for the administration of National Health Insurance in this country, and when the Conservative Government passed the Act in 1928, special consideration was given to this particular aspect of National Insurance, and another 20 months free insurance was provided for this class of case. Subsequently, by regulation, that period of 20 months was actually extended for another 12 months at reduced benefits.
We are not endeavouring to prevent these unfortunate people receiving the shilling or two under this Bill, but I ask the House to refer to the immediate proposals before it. The national health insurance scheme has now been in operation for a good many years. Despite criticisms at the start, it is now firmly placed as one of the social systems of this country, and it will always be honourably associated with the name of the right hon. Gentleman the Member for Carnarvon Boroughs (Mr. Lloyd George) as one of the greatest pieces of legislation he has contributed to our social life. I remember the debates then, as also does the hon. Member who is associated with approved society work, and how the right hon. Member for Carnarvon Boroughs, with the majority of the House, firmly based this scheme on the contributory principle, and how again and again he resisted all Amendments and suggestions that would take away that principal feature of the national insurance system of this country. I remember so well how he, and successive Ministers who had to deal with national insurance, always based the defence of the contributory system, and the conditions which were laid down which necessarily followed, that a premium could only bring a certain amount of benefit, that you must have some rules and regulations, however hard they might occasionally be, in operation. He always referred to the experience and administration of the great friendly societies and trade unions.
It is no unusual thing to hear this unfortunate tale which the right hon. Gentleman has told us to-night of the position of a certain class of people. Whether we like it or not, and to whatever reason it may be due, every friendly society administrator and every trade unionist administrator who has had to deal with unemployment insurance has been brought up sharply again and again in face of circumstances and cases such as those of which the right hon. Gentleman has told us to-night. In connection with every friendly society and every trade union that has administered unemployment insurance, there has always been this problem—where, in the interest of the society as a whole, and in the interest of the insurance principle which has been one of the finest principles in this country, and for which it is known all over the world—where are you going to draw the line?
Friendly societies and trade unions, as well as the best and most sympathetic social administrators, have always taken the view that you must lay down rules if you are to preserve one of the finest features of our social life and social institutions, and however disagreeable it may be the time always comes when you will have to say to an unfortunate individual who has not made a sufficient number of contributions that his benefit must cease. That has been the principle upon which friendly societies have worked and the principle upon which the trade unions have administered unemployment insurance. It has remained the system in national insurance up to the time of the introduction of this Bill. No one can be accused of adopting an unreasonable or hard hearted attitude if on a Bill of this kind we insist upon understanding what we are doing and the consequences of our action. We have had a terrible example of what may happen if we depart from this principle. There is not a man in this House who would desire the experience of unemployment insurance repeated so far as the national insurance scheme is concerned. T believe that is so.
No.
With the exception of the hon. Member. The National Health Insurance Commission which was composed of representatives of all sections of the community, including members of the Labour party, came unanimously to the conclusion that it was gravely against the interests of the National Insurance Scheme itself that there should be any necessity for what was called prolongation insurance regulations and that they ought to be brought to an end as quickly as possible. The question I ask the right hon. Gentleman and this House is this: is it the desire and intention to start the same unfortunate policy in connection with National Health Insurance as we have pursued in unemployment insurance? A more fatal course we could not take, not against the interests of these unfortunate people, for whom some provision is being made, but against the interests of the great mass of insured people who belong to approved societies, who have paid their premiums week after week, built up reserves and, thereby, obtained additional benefits of considerable value. It would be one of the most fatal things we could do if by any action we took in this House we gave the impression to the insured people that the contributory system under National Health In- surance was being abandoned and that it did not matter whether they paid their contributions or not because the State would pay. I say this with diffidence because one can easily be misrepresented on this matter; but with all the more sincerity, if I may put it that way, because we are not confronted in these proposals with the same difficulties as confronted us in the matter of Unemployment Insurance Benefit.
I listened with the greatest possible interest and respect to the speech of the hon. Member for Gorbals (Mr. Buchanan) whose great anxiety in connection with any alteration of unemployment insurance scheme is to keep the body of people together in that one scheme, that nothing should be done which would drive any section in that scheme to public assistance committees. That is a perfectly arguable point of view. But this Bill is not going to prevent any individual seeking the aid of the public assistance committee. You are going to give a man or woman this 3s. 9d. That is not going to prevent these unfortunate people applying to the public assistance committee. If you give them the maximum allowed under these proposals, 7s. 6d. per week, cash benefit, that is not going to keep a man or woman from going to the public assistance committee and, therefore, I cannot understand myself, and it has not been explained, the object of this particular proposal. It cannot be urged that this particular assistance is going to keep people away from the public assistance committee. I was rather impressed with the speech of the Minister of Health to the Association of Approved Societies, and particularly when he said that: two years. He said: "Look at their lot, what are we going to do? They have been out of work in some cases for two and three years, how can you possibly cut them off from benefit?"
Are these the only cases in connection with National Health Insurance? If you say that the State is to come in and pay the contributions of these people, unhappy and miserable as they are, will you not be confronted with a host of others who are equally entitled to consideration? What about the people who have less than 208 weeks of insurance and less than 160 contributions? They receive no benefit under these proposals. Directly you admit the principle that the State must come to the assistance of the people covered by the Bill, are they also not entitled to go, next week, to the insurance department, and to demand to see the Minister of Health, and to say to him "You are not maintaining the insurance principle of this scheme and we want our cases to receive equal consideration with these other cases?" What about the people who, in order to preserve their national health insurance lights, when they have gone out of the compulsory side of the scheme have become voluntary contributors, and who have then lost their insurance status owing to unemployment? I hey do not get the advantage of these proposals and what are you going to say to them 1 Once you leave the insurance principle behind they will claim to be entitled to assistance from the State as veil as the people covered by this Bill. What answer can you make to them?
I only give one further example because I think the two classes I have already mentioned are fairly evident examples to be cited in answer to the question: "Where are we going?" What about the case, which is constantly mentioned by Members in this House, of the absconding employer who goes off without paying his contributions and leaves the workman in the lurch. The State has no right to use the National Health Insurance Fund for the purpose of putting that matter right and many very difficult and hard cases arise, in that way. Such a man can also come forward now and say, "Since you have left the principle of insurance behind I am as much entitled to consideration as the people covered by the Bill." This is a position which has in the past confronted not only national insurance administrators but others. Friendly society and trade union administrators have known it for nearly 100 years. The people who ran the friendly society movement and who administered the unemployment insurance schemes of the trade unions knew that directly the rules were departed from, however hard the particular case might be at the time, it meant letting loose upon themselves a sea of troubles. That is why I ask the right hon. Gentleman on this Bill: Where are we going to and what does this mean? It is true that this Bill gives a small class of people a very small benefit, and that it limits this assistance to one year, but what Members sitting here to-night would dare to say that in 12 months time the position of this country will be so improved and the lot of these people will be so much better, that whoever occupies the Treasury Bench at that time will be able to announce that this provision is no longer needed? Shall we not be confronted in 12 months time, with a situation very much like the situation of to-day, but with this difference—that a number of others will be behind these people in the queue, and they will say, "If you introduce any proposals you will have to remember us as well as others." This Bill is not a solution of the problem. The hon. Member for Leith (Mr. E. Brown), as he always does, put his finger on the spot yesterday. We find ourselves in this position—that having submitted an analogous problem in relation to Unemployment Insurance to a Royal Commission, we are now starting off on the same path in relation to National Health Insurance, irrespective of what the recommendations of that Royal Commission may be. We have endeavoured on this side to accommodate hon. Gentlemen opposite, in meeting the necessities of the Parliamentary situation as regards this Bill, but before we go to the remaining stages I would ask the Minister of Health to state if he is willing, on behalf of the Government, to say that he will submit this difficulty also to the Royal Commission which has already been appointed to consider the similar difficulty in connection with Unemployment Insurance. I ask him if this question also cannot be referred to the Royal Commission for consideration, with a request that they should report upon it as speedily as possible so that when we come to deal with the subject again, we shall have before us the recommendations of a responsible body upon it. I hope the right hon. Gentleman will give the House a definite reply on that point.
One cannot overlook this aspect of the matter—that the nation is now confronted with still another financial demand before December closes. True, it is not such a large demand as the others which have been made upon the State during the last few months, but these sums are mounting up. We had presented to us on 14th November a Supplementary Estimate for over £10,000,000. We have had, in addition, Estimates in connection with the Agricultural Land (Utilisation) Bill and we have now an Estimate in connection with this Measure, which it is expected will cost £130,000, though we hope it will be less. We cannot pass over these matters without comment. The introduction of this Bill is animated by good motives. It is intended to assist people who are unemployed but I am very much afraid that, in placing further additional taxation Upon the country, you are again pursuing the vicious circle and that the result of this taxation, added to the burdens which already have to be borne, will be to put more people out of work. That is not a Tory view, because only a short time ago I read a report of the General Federation of Trade Unions in which the definite conclusion was set forth that all this heavy and increasing taxation in the end hit the worker and put him out of work. Yet here we are confronted in this Bill with a demand for further State expenditure. I only hope that the right hon. Gentleman will be able to make some reassuring statement to the House as to the intentions of the Government in dealing with this problem. I hope that he will be able to give us an undertaking about the Royal Commission of the kind which I have indicated, and an assurance that, as regards this aspect of our national finances, he does not contemplate imposing any further burdens on the trade and industry and the workers of the country.
After the admirable and exhaustive speech of my right hon. Friend the Member for West Woolwich (Sir K. Wood), it is only necessary for me to add a word. I hope that when this problem is examined, as it will have to be, there will be the most careful inquiry, not merely from the point of view of the particular people who are pressing for the benefit, but from the point of view of the other approved societies. The approved societies are not all affected in the same degree. One society's problem in this matter may be very small, while another society's problem may be very large. It is unfortunately the case that many of the societies have a larger number of the suggested 80,000 as compared with some of the other societies. That is what? makes the real problem. It is the problem of being able to deal with a number of men concentrated on a particular area. It is another illustration of the complexities of the unemployment problem in the distressful areas, where unemployment is highly concentrated. I should like to hear from the Minister whether the Government have in mind anything further than this Bill, which is just a temporary help to the persons in need. The whole House agrees that it ought to be done, but I am bound to agree with my right hon. Friend that the House will be lacking in its duty if it does not face up to the fact that this makes a change in the insurance basis of the Health Insurance scheme.
indicated dissent .
I cannot agree with the hon. Lady. I agree, with reference to the contributions to the societies, that it makes no change, but it makes a great change with regard to the onus of the payment of the contributions by the contributor or some other person. It is that change to which the mind of the House will have to be directed, and the minds also of the insured persons and of the approved societies, whether they are affected in a small degree or in a large degree. We could have wished that the House had had longer notice of this Bill, so that we could have had a discussion with fuller information which would have been adequate to the needs of the persons who will be relieved when this Bill passes, and to the magnitude of the complexity of the issues that may afterwards arise because of the step we are taking to-night.
I would like to express my gratitude to the Government for bringing this Measure forward rather late in the day, and to the Opposition for their acquiescence in allowing this Measure to pass. The people concerned are very poor, and it appeared that it would have been dreadful if those people had been put into the position that many of their rights would be lost. It is true that the, pension rights might have been protected by legislation passed in the New Year, but when one has been a Member of this House for more than six years, one gets a little doubtful about future legislation. I raised this matter in May, and had personal correspondence with the Under-Secretary of State for Scotland. I was informed by him that the Government were considering all the different types of cases that were affected. Naturally I took for granted that with this consideration no rights would be lost. Well, none are going to be lost now.
I would like to deal with what the right hon. Gentleman the Member for West Woolwich (Sir K. Wood) said with regard to the smallness of the benefit. He said that it would not prevent people going to the public assistance committee. There are, however, cases of ex-service men who have been unemployed for a long time, and who, as a result of their service, are in receipt of a pension. They have not been able to get employment, and many of them would have been thrown out of insurance benefit, but because of this Measure, they will be kept in, and the 7s. 6d. benefit, with their pension, will enable them to maintain themselves without having to go to the public assistance committee. Again, there is the case of the young person at home who may go to the public assistance committee, and find that the committee will do nothing for him because of the income that is coming into the home. That person, even by the small payment that he is able to make in the home, feels that he is not altogether being carried by the others, and is enabled to maintain some portion of his self-respect. When we talk about the maintenance of the insurance principle in this matter, we have to be just as determined to maintain the rights of these people, who are not responsible for their unemployment or for their sickness.
In all these discussions with regard to the maintenance of the insurance principle, we have to see that no rights of these persons are lost, and that there is no impairment of their self-respect, because they are not responsible for unemployment. Some of us have been hammering away at that in order to get it realised in the House, and I feel very grateful to all parties that there is a recognition of the position of these people, and that their rights are to be maintained. I agree that there must be investigation in future. I was hoping that the Government would have brought in a big Measure, because the real point is not the maintenance of the insurance principle. The position in regard to health insurance as compared with unemployment insurance is not that health insurance is so much more sound from the actuarial point of view. The important matter is that the health insurance benefits are less than the unemployment insurance benefits, though the person who is in sickness requires even more than the unemployed person, and more than he is getting in wages, because of the additional expenditure which he has to meet.
We lash ourselves into a state of excitement about the insurance principle, and that may be an important thing, but, looking to the future, I hope that all parties in the House will have regard to the inadequacy of the present payments. The right hon. Gentleman who spoke for the Opposition made it clear how inadequate these sums are, and it is no good our thinking that the matter can be put right by people going to the public assistance committees, because there is general agreement that burdens on the local rates bear more heavily on industry than do increases of national taxation. The Colwyn Committee's report made that perfectly plain. If we are to make the interests of our people secure, we must visualise a Measure with much greater benefits, with greater expenditure, and giving a greater degree of comfort to the people. I will close by again expressing the gratitude of myself and those associated with me for what has been done. It is a great relief to know that at least this protection will be afforded to these people until the House is able to arrive at a more comprehensive solution of all the difficulties involved.
I want to enter a protest against the introduction of this Measure this evening, not so far as it relieves those who but for its introduction would be placed in very sore straits in the coming year, but because of the delay and vacillation of the Minister in getting to grips with this subject. We have allowed this thing to go on from last December up to the present time. Throughout that period we were conscious of the fact that unemployment was not going to get less; indeed, there was every indication that it would rise. So far back as June—and, after all, that is a considerable time ago—it was evident that by the end of the year the problem would be more serious than it was in December last; and we have a right to complain, and complain bitterly, that the Minister has not brought himself to grips with this subject. What could have been done? As much, at least, as it is proposed to do to-day. But deeper thought could have been given to the subject, and we need not have had to be content with a Measure to continue the insurance for only one year more. We could have dealt with the subject as a whole. The problem is to be gone into in the coming year, and I hope that at the end of that year we shall not have to face a repetition of the position in which we now find ourselves.
Let me state the case which has been the basis of the complaints raised in questions by the hon. Member for Camlachie (Mr. Stephen) and the hon. Member for Gorbals (Mr. Buchanan). Their first point was that notices of arrears and the passing out of insurance had been sent to some insured people, but that notice had not been sent to members of other societies. Some people have been receiving the benefit of prolongation for three or four years, and there may easily be cases where prolongation has gone on for nine years, because the first Measure dealing with the prolongation of insurance goes back to 1921. What would be the state of mind of those persons? Year after year they have been entitled to benefit by reason of prolongation; then, suddenly, they receive a notice that in 1931 the benefit, which they had begun to look upon as a permanent thing, was due be pass away. It was cruel and hard to put them in such a position. Within a, fortnight of the end of the year they had received no notification of what was to happen except the hope, expressed in answer to questions, that some continuation of benefit might be possible. On that ground alone the House has reason to complain, and I hope that before the end of next year the ministry will have found a solution of the problem.
During the last day or two there has been some comment in the Press on the proposals of the Minister, and I read an article in the "Nottingham Evening Post" which, I think, puts the case quite well. The writer says:
It may be said that the wit of man could surely devise some scheme under which such a condition of affairs as we have passed through in the last three or four years should be avoided, these cases being dealt with not by resort to the Poor Law or by special grants from the Treasury but being borne by the scheme itself. If I am not unduly wearying the House I will give an example of the way in which that object could be achieved. The Minister said that maintaining the rights of insured people to pensions was more important than the payment of health insurance benefits. If that is the real difficulty at the bottom of the mind of the Minister, I would remind him that provision had already been made that any deficiency should be made up by the Treasury, and in order to maintain these people in their rights to pensions all that was necessary was a simple book arrangement with the approved societies to keep their members upon the register apart altogether from their benefits under health insurance.
I wish to say one other word on the value of the benefit itself. It is quite true that the value of the benefits which may be obtained ranges from 3s. 9d. to 7s. 6d. If it be the intention of the Minister to prevent these people getting relief from public assistance committees, really 3s. 9d. or 7s. 6d., except in the special case which my hon. Friend the Member for Camlachie mentioned, will not keep them off Poor Law relief at all, but public assistance committees are estopped from making any deductions in respect of the first 7s. 6d. per week received from health insurance, so that in fact you are by this Measure giving a plus upon the amount which would be paid ordinarily under Poor Law relief. [An HON. MEMBER: "Hear, hear!"] The hon. Member opposite realises that these people will have to take Poor Law relief and that he is going to get them a bit more. So long as it is understood, well and good. Do not let us hoodwink ourselves in this matter. We are in fact asking for a plus upon the benefits that the? ordinary-person would get who had not rights of health insurance.
I want to endorse the suggestion which is made that the question of the prolongation of the insurance, the effect of unemployment upon health insurance, should be referred to the Royal Commission which is dealing with the question of unemployment. I said I should be prepared to make a suggestion. I have held the view that there is a very close connection between unemployment insurance and the necessity of keeping up the contributions under health insurance. After all, unemployment insurance comes in to take the place of the lack of wages of the individual, and therefore, if it is to be considered as getting something in substitution for the wages which he would otherwise get from work, he ought to be in a position to maintain the insurances which are to provide for some other contingencies. There ought to be no difficulty in providing under unemployment insurance that in addition to the payment of unemployment benefit there should be a payment made under health insurance for the continuance of his contributions. At least it would keep your health insurance, so far as contributions were concerned, perfectly solvent. From the point of view of the unemployment insurance, we must ensure that both schemes shall be perfectly solvent, and if we are to take all the contingencies of long periods of unemployment and treat those on the basis of the insurance scheme, I say at once, Let your contribution be equal to your risk.
9.0 p.m.
It is, I agree, desirable to meet this very urgent matter, but being a member of the Consultative Committee before whom this question was placed last week, I want to say that although the members of that committee did accept the proposal in the interest of the members of approved societies, and because it was the alternative to finding the money themselves, which they said they could not pay, they insisted very firmly that this was a prolongation for one year only, and they were not content to let this matter remain in abeyance until the end of next year. It is a prolongation for one year, but the approved societies, as represented on the Consultative Committee, clearly had it in their mind that this subject was going to be tackled in the right way and that it was not going to be a repetition from time to time, carrying us over what were said to be very urgent and extraordinary circumstances. I hope that when the Parliamentary Secretary to the Ministry of Health comes to reply, she will give some satisfactory answers to the questions which have been raised by my right hon. Friend, and at least approved societies and those interested in national health insurance will have the assurance from the Ministry that this problem is going to be dealt with during the coming year on a more satisfactory and prompt basis than in the year 1930.
I want to express my gratitude to the Minister of Health for having brought in this Bill. We in the mining industry realise the great need for this Bill. We have had scores of thousands of men, and have to-day, who, were it not for this Bill, would be through their pension rights next year. The pension rights are the most important aspect of this question. I do not minimise the importance of the 3s. 9d. or the 7s. 6d., because it does the very thing to which the last speaker takes objection. It increases the amount received by people now in receipt of relief from public assistance committees. These are sick people in many cases, men who have been sick for years, and 3s. 9d. and 7s. 6d., in addition to the relief paid by public assistance committees, will be a great help in these cases. These men have been unfortunate and have not been able to work for several years. Pension rights are dependent on health insurance contributions, and we add to their burden by depriving them of these rights.
It may be in the interests of the Conservative party to argue that this Bill may endanger the contributory principle, but I fail to see how it does. All that it says is that certain people in this country have been unable, through no fault of their own, to pay their contributions for health insurance purposes, and those people should be attended to by somebody; and we think that that somebody is the national Exchequer. Supposing we did not do this, what would happen? We all know that the most unfortunate people in this country would suffer. Much that has been said by the right hon. Member for West Woolwich (Sir K. Wood) did not seem to support this Bill, and were it not that we, on this side, know that the other two parties have agreed to let the Bill pass through, I should have doubted it, from the speech which the right hon. Gentleman delivered.
We in the mining industry have always felt that if something was not done before the end of this year, thousands of miners, through no fault of their own, would be penalised unfairly, and therefore we now feel exceedingly thankful to the Minister of Health and realise that it has not been his fault that the Bill has not been -brought in earlier. We also wish to express our thanks to the Opposition that they do not intend to prevent this Bill getting on to the Statute Book.
I should like to join with all the speakers, I think, on this side in their protest at the method by which this Bill has been brought before the House. It is one of the disadvantages of democracy which all neutral observers maintain, and one of the dangers of democratic government, that there is always the possibility of one party proposing to make payments to certain people and then putting the onus on the Opposition of refusing to agree to those payments. I think that any fair-minded person must recognise that this is a very real danger in democratic government to-day. It places a strain upon those who may be called upon to oppose a payment which in many cases, with all the possibilities of misrepresentation, is, perhaps, almost more than human nature can be expected to bear. I do not suggest that that is the position in the case of this Bill, because I think there is a perfectly genuine feeling on this side of the House that this particular payment has got to be made, and I do not want the remarks I have just made to be thought to apply to this particular Bill in their full force.
On the other hand, there is something about the method by which this Bill has been presented to the House which does introduce the danger to which I have just drawn attention. Where you have a thing like this, which the Opposition is pretty well convinced ought to be done, if you push it upon the Opposition by reason of the urgency of the Session and the-urgency of the need of the. people for whom the payment is required, you place the Opposition in a very awkward position, because, if they try to maintain their ordinary rights of discussion and, possibly, delay, it lays them open to the possibility of grave misrepresentation in the eyes of the people in their constituencies. I do feel that, before saying any- thing on the merits of the Bill itself, I must draw attention to that feature—that unpleasant and dangerous feature, as I consider it—of democratic government. Every time this sort of pistol—for it is in the nature of a pistol, whether it be fully loaded or only half loaded—is placed at the head of the Opposition, it is, to my mind, only one more nail driven into the coffin of democratic government in this country. The proposals of 1928 were an effort to get away from the unlimited commitments of the prolongation of insurance of some seven years previously, and, after two years, we find that the specific standard of time laid down in 1928 is to be departed from. It seems to me that there is very little difference between having, on the one hand, a perfectly unlimited prolongation of insurance, and, on the other hand, specifying a definite limit but being perfectly prepared to transgress that limit without any particular effort to find an alternative. It does not seem to me that, in point of practical fact, there is really any difference between these two principles.
Probably everyone who discusses this question has at the back of his mind always the comparison of unemployment insurance. Everyone feels the anomaly which must exist if you allow unlimited payments in the case of one so-called system of insurance, and, on the other hand, limit them in the case of another system. That was very clearly in the mind of the National Health Insurance Commission a few years ago. I have here the remarks that they made upon it, but no doubt the House is well acquainted with them, and I will not trouble to read them now, but I think that that anomaly as between National Health Insurance and Unemployment Insurance must be present to the mind of everyone who applies himself to this question, and there must be a feeling that, as the unlimited benefit of unemployment insurance exists, one has no particular cause for resisting the bringing of national health insurance, so to speak, up to that level.
I confess that I myself have no great love for striving after equality. I think there is a very great deal to be said for inequality. A great deal of the progress that has been made in the world has been on account of inequality. For myself, I think that many of the apparent, and per- haps actual, inequalities m the national health insurance system1 itself are good. I know that other people do not think so, that they think that there are a lot of inequalities in the system which ought to be rounded off into a more general and, perhaps, on paper, a fairer level; but my objection to levelling is that, if you level, you nearly always level down instead of levelling up. You may get a level, but you level on to a lower level—you bring the top one to the bottom instead of the bottom one to the top. I think it will be agreed that that is rather a general feature of levelling things which appear to be unequal; and that, in point of fact, is what is going to be done in this case.
You take what I think is admitted to be the worst feature of unemployment insurance, namely, the fact that it has got really outside the bounds of insurance proper, and is only an insurance scheme in name—you take that worst feature, and you propose, perhaps little by little, but you do propose, to start or proceed upon the path which eventually goes down to that very deplorable level. Moreover, when you try to level, you may level out some things, but you create other inequalities at the same time. That point was made by my right hon. Friend the Member for West Woolwich (Sir K. Wood). He quoted the case of a man who has been unemployed, and who has made a genuine effort, by becoming a voluntary contributor, to keep himself in insurance. You have to look to the feelings of that man when a Bill such as this is brought in, and when he sees that he, who has made a genuine effort to remain in insurance, is now to be, so to speak, penalised by someone else who has no to been brought up to his level. One has seen, if I am not out of order in making the comparison, the same thing in the Land Bill upstairs. By bringing in a Bill to provide smallholdings for unemployed—
I am afraid that we cannot go into that matter now. Otherwise, there would be no limit to the debate.
As I was saying, we have taken the worst feature of unemployment insurance, and there will be a tendency to level down National Health Insurance to that level. A great deal is said about the unification, or amalgamation, or codification, or whatever it may be called, of the social services in this country. I think there is a great deal to be said for that, but I do not want to see any Measure brought in for simply unifying the almost unrecognisable wreckages of the two systems. The first step in unification, to my mind, ought to be to take these undesirable non-insurance elements out of the two systems, and, it you like, unify them and make them into one system for dealing with benefits generally, whether health, pensions, or unemployment, which arise out of the very unfortunate prolonged period of unemployment. I know that the hon. Member for Camlachie (Mr. Stephen) would not agree with that, because I know quite well that the argument is that it would be a stigma upon those who were included, through no fault of their own, in that special scheme. I naturally do not expect him and his associates to agree with me, but, to my mind, that is the first step which ought to be taken in the unification of the social services—the unifying of undesirable elements which have got outside the system of insurance proper.
It may, and no doubt will, be said that this Bill is merely a temporary Measure, but, when you adopt a temporary Measure, you have to face up to what is coming afterwards. Three things may come afterwards. You may either increase, or you may decrease, or you may adopt some other principle altogether. We may not wish to increase the extension which this Bill implies, but I think we shall be very sanguine if we do not face up to the fact that we may have to do so. We may wish to decrease it, but I think we shall be very sanguine if we think that that wish can be carried out. There remains, therefore, the third point, and that is to do something, in the course of the period which the temporary Measure covers, which will set the whole of this question on a new, a different, and a better basis, which will clear away from both the Unemployment Insurance and the National Health Insurance systems those elements which have got outside the control of insurance proper, and leave those systems, whether they remain separate or whether they are unified, what they were primarily, and what they actually ought to be, namely, genuine insurance systems.
I wish hon. Members opposite, instead of speaking in vague terms of what is going to occur, would tell us what is really in their minds. They say these poor people are unfortunate through no fault of their own. In sobriety or decency, they are like the rest of us inside or outside the House, but, being unfortunate, they ought to be treated differently from their more fortunate brothers. In other words, they say that, because these people who have been smashed already and dealt with in a cruel fashion are unfortunate, they will deal with them and make them even more unfortunate than they have been in the past.
It is not a question necessarily of putting them into some scheme in order that they shall get less benefit. It is merely that the administration of the benefit, or whatever is done for them, shall be kept quite clear of insurance administration.
That does not face the problem. The problem is that it will cost you less. You say you will give them the same sum of money. Therefore, the same sum of money must be paid by this method or by your method. What is your advantage? If you can show me any advantage, I will accept it. It will not save you any money. What are you going to do? You are going to have in health insurance what you have in private charity. In any large town you have authorities administering charity, giving here and there with no co-ordination. The hon. Member proposes, instead of having a co-operative health system that knows each health person and knows what he is going to get, to set up a new Department with new officials, new inquiries, what the "Evening News" constantly denounces, more Whitehall, and more people drawing incomes from the State. Is that what he means? If it is not, what does he mean? You already have your doctors, your officials, and your equipment in health insurance. You are going to have another set of officials and doctors, and people to look after them. All that the hon. and gallant Gentleman is going to do is to smash what he and his party stand for —economy. You do not want to do that. You would be more stupid than I take you for if you did. You want to start and treat them differently.
On a point of Order. Is the hon. Member addressing the Chair?
I was about to remind the hon. Member that it would be better if his remarks were addressed to the Chair.
What you intend to do, only you have not said it, is to treat them in the matter of income differently from the insured person. That is your only justification for a new departure.
The hon. Member has asked me a large number of questions. I do not know whether he wants to answer them himself or wants me to answer them. You undoubtedly save in money and efficiency. You remove from the insurance system something which, if it is left there, brings such a tangle that the ordinary checks of insurance do not operate.
The hon. and gallant Gentleman says he is going to give the people the same money and to set up a new Department to guard the sacred insurance system. No one is going to set up a new Department with new doctors, new officials and new duties. Therefore, you are faced with two things, either this method or passing them on entirely to the Poor Law. You have two machines existing, Health Insurance and the Poor Law, and no one proposes to set up a third. I should be insulting the Government if I said it was in their mind to do that. The Bill proves that they do not intend to do that. I hope they will not dream of doing it. One hon. Member has suggested that this is breaking the insurance principle. I do not want to clash party swords on it, but it is much more in keeping with the insurance principle than the action of the late Government. This Government is continuing prolongation, and making a contribution to the Insurance Fund. The late Government made no contribution to the Insurance Fund and left it much worse off. Now the hon. and gallant Gentleman attacks the Government for attacking the insurance principle, although, in order to safeguard the insurance principle, they are making a con- tribution towards it. From that point of view I cannot follow the hon. and gallant Gentleman. Some time ago when the Widows' and Old Age Pension Act was being passed, we were assured that a Committee was fully [investigating the whole ramifications of Health Insurance and Widows' and Old Age Pensions. That is almost 15 months ago. I should like to know what stage those investigations have now reached. Are we at any stage here where the Government can introduce a Measure to deal with the whole of the questions arising therefrom? Many are the inequalities which are almost impossible to defend. I am glad to accept this Measure, knowing that those inequalities still exist.
One of my hon. Friends said that the voluntary contributor would feel offended. I do not think he feels offended by the fact that he is going to get the benefit of the Act. Then the hon. Member talked about levelling up or down, but he proposed to do it by levelling down the insured contributor to the level of the voluntary contributor who has been unemployed. I should much prefer any other method if there is a way out, and I ask the hon. Lady, or whoever replies, to tell us at what stage these investigations are, and if WP can be given any idea as to when the report is likely to be forthcoming and how long it will take the Government to complete their investigations? In another year, I think you will find a great deal more difficulty in getting a Measure unanimously through this House, and, in any case, I understand the approved societies are very anxious that it should not continue for another year under similar conditions. Therefore, the whole position must be carefully faced within the next 12 months, and I should like the Government to say whether, by the end of 12 months, any definite statement is likely to be made, not only in connection with health insurance matters, but with other cognate matters.
I want to close on this note. I recognise that the Opposition have a right to raise the point and to raise a discussion, but I do ask them to consider seriously if they are going to set out on a new campaign among the unfortunate section of the community who have been idle. Hon. Members sitting near me who have a knowledge of the steel works know they have been shut down for two, three, four or five years through no fault of their own. Hon. Members opposite may talk about Protection. I do not want to go into the Protectionist argument. The last speaker said that one of the dangers of democracy was the danger of bidding in the way of grants for political purposes. The great danger of Protection is the danger of bidding for protection of industries to buy votes. Hon. Members know the terrible suffering these people have gone through, and they should think once and twice before they start to create a new and separate class in our community. Do not let them turn to these people and say that they have been smashed by unemployment, and that they are to have no consideration, but that they are to be put in a separate compartment. Nobody desires that, and the approved societies do not. They wish to keep these people in within the ambit of health insurance. The great mass of these people are still capable of producing wealth and doing useful service to the community. We must investigate not only health and unemployment insurance, but the whole ramifications of our social system to see if we can find useful work for them, and bring them back into the sphere of equality with the rest of their fellow-workers.
Health insurance is not a separate problem; neither is unemployment insurance, nor housing. The whole lot are bound up with the terrible poverty question. Until you go into the general poverty question and try to find a way—it may be Protection or some other method—out of that terrible morass, do not start to deal body blows to these people who cannot resist them. They are in a serious minority amongst their own fellow-workers, and they have little or no voice. In the approved societies they number but few, and because they are few they are practically defenceless. Hon. Members need not think that they can buy large numbers of votes from them, for their numbers are small. As they are small, their expressions in the Press are meagre, and because of that I think the House ought to be fairer to them than if they were in larger num- bers and a more powerful group. Let not hon. Gentlemen opposite, in talking about doles, forget their Government's record, assisting one set of people who are rich and powerful, and not another because the people were poor.
The last Minister of Health said he could not differentiate between rich and poor, but had to give it to all of them. When you are dealing with health matters, you give to some who may be more in need than others, but, in the general administration, you must deal with all in the same way. A party whose Government could give millions of pounds to rich and powerful vested interests has no need to grumble because this Government comes along at this moment with a meagrely just Measure. Do not think I am criticising the fact unduly, for I welcome the Measure from the bottom of my heart. People who give rich people money need not grumble because of it, and I hope the whole House will welcome this Measure and say, at this season of the year, that, while it is a small thing, with the Government's work next year, by this time 12 months we shall have introduced a big, comprehensive and far-reaching Measure finer even than this one has been.
All the Members who have spoken have shown that in the opinion of the House this small Measure should be passed. The discussion has turned on two points. Some hon. Members have expressed a fear lest the insurance system should break down, and many have expressed the view that legislation for one year is unsatisfactory, and have desired to see a general and comprehensive insurance scheme. I think, first of all, that there has been a little confusion as to what insurance really is. One hon. Member—the hon. Member for Mitcham (Mr. Meller)—defined it very well when he said you could not load a scheme with greater risks than the contributions could bear. I desire to say that to pay contributions at first, and to allow insured persons to receive benefits proportionate to the risks that the scheme can bear, is in no way derogatory to the principles of sound insurance as understood in business circles. Strictly speaking, an insurance scheme based on scientific principles, where contributions and benefits are weighed against each other on a sound actuarial basis, is solvent if the calculations are rightly made, quite independent of whether the contributions are paid by the persons who receive the benefits or by some other persons. Such matters are on a wholly different footing to what has been urged against the Unemployment Insurance scheme. The hon. Member for Mitcham also has made the very interesting suggestion of correlating unemployment benefit and health benefit. Several other Members have made this suggestion. They have all expressed dissatisfaction at the present position of these persons.
I want the House to remember that this is not the first time that prolongation of insurance has been dealt with. Without desiring to make any criticism of the action of any of my predecessors, there is nobody in the House who can really throw stones in regard to this matter. In 1921, the House unanimously passed a Prolongation Insurance Act lengthening indefinitely the benefits of persons who were suffering from a prolonged state of unemployment. That was done, as I have said, unanimously, and, perhaps, one might say that it placed a definite burden on the fund which was not at all consistent with insurance principles, but the House did it on account of the great need. The second thing which affected the matter was the Economy Act, 1926, when the approved societies lost between £2,500,000 and £2,750,000 a year, and that loss bulked very largely, as the hon. Member for Mitcham knows, in the discussions between the Minister of Health and the approved societies.
Then came the Prolongation of Insurance Act, 1928. That fixed the terms of the prolongation of insurance, and the Minister of the day was allowed, by regulation, to increase the insurance of persons hopelessly in arrears through unemployment. The approved societies carried a loss under the Prolongation of Insurance Act. They now tell us that they are extremely sorry for these persons but that they can do nothing more, and to enable these people to get their medical benefits and their pension rights, the Government are placing these members of the approved societies in the same position in which they would be put if they were voluntary contributors. The right hon. Gentleman the Member for West Woolwich (Sir K. Wood) spoke of the smallness of the benefits and of the little use they were to them. I would remind him that they are identical with the benefits that this class of person received during the past five years. It is not altogether true that those who have recourse to the Poor Law are not benefited.
The House has asked if I could now forecast the result of the negotiations with the approved societies on the general question. The hon. Member for Gorbals (Mr. Buchanan) has asked more than that. He has asked, not merely that I should anticipate what might be the outcome of the conversation with the approved societies which will undoubtedly take place, but that I should anticipate what might be the decisions of the Prime Minister and of the Cabinet in regard to the course of business next year. I understand why hon. Gentlemen raised that question. They took advantage, very properly, of this opportunity to express—the hon. Member for Mitcham the opinion of his members and the hon. Member for Gorbals the opinion of his constituents—opinions shared by many other constituents throughout the country. These questions I consider are rhetorical questions. They are addressed not so much to the person who stands at this Box just now as to the Government of the day and to the public of the country, in order to indicate the course which certain hon. Members hope the Government will take. I do not think that they expect me to give an answer.
Only a rhetorical one!
They know that on this Bill, and in these circumstances, I cannot do so. I have to thank the House for giving us the Bill, and to say that my reply is based, not so much upon the criticisms of the Bill, but on the wishes which have been expressed so often that something shall be dope for these unfortunate people.
I am sorry that the Parliamentary Secretary to the Ministry of Health has not answered the direct question put to her by more than one Member of the House, namely, is this matter going to be referred either to the Royal Commission which is dealing with the question of unemployment insurance or to the Departmental Committee which is considering the whole question of social insurance? I am satisfied, from my considerable experience in insurance matters, that although this prolongation is for 12 months, it is not going to be the end by any means. For once, I am in absolute agreement with the hon. Member for Gorbals (Mr. Buchanan) in his view that something should be done of a more permanent nature to deal with this very vexed question. I agree with him that we could not possibly leave these people to drop out of insurance benefit, even though the Government forgot them until the last few days. I want to repeat what other hon. Members have said, that the Minister has been very remiss indeed in not dealing with the question much earlier. It is true that members of my party decided that they would help the Government to do all they could to get the Measure through in time, but the blame for bringing it up so late surely rests upon the Minister responsible. We were promised during the last election that if the party who are now in power succeeded in going into office, they would tackle the question of insurance. I do not say that they mentioned this particular matter, but they mentioned the question of insurance all round.
The hon. Member for Gorbals has mentioned many anomalies in connection with insurance, and has suggested that the new committee should carefully consider all such anomalies. This is more than an anomaly; it is a difficulty which will have to be met by whichever party is in power. The hon. Lady rightly said that we had to deal with this matter when we were in office. We had to bring forward proposals for prolongation. I suggest, realising that this is going to be a matter which will have to be met year after year, that now is the time to deal with the question thoroughly. A suggestion was made that it should be referred to the Royal Commission or to the Committee of Inquiry.
We have had a further suggestion made by my hon. Friend the Member for Mitcham (Mr. Meller), about which I was hoping we should hear something in the reply of the hon. Lady. He suggested that the men concerned should be taken out of the scheme in regard to which the State pays the benefits and be correlated with unemployment in- surance. The man is given unemployment insurance money because he is not in a position to earn a wage. I have been considering this matter for some time in consultation with various people who are interested in insurance matters, and I hold the opinion that it would be possible so to arrange the scheme that a man should never be out of benefit as regards health insurance. There is no temptation for a man who is drawing unemployment insurance to go on to sick insurance, because under the peculiar system which prevails if a man with a dependent wife and four children is unemployed and drawing unemployment insurance he gets 34s. a week, but if he falls sick and therefore comes out of unemployment insurance he immediately drops down to 15s. If he is one of the poor unfortunates whose insurance has had to be prolonged, he gets only 7s. 6d. Therefore, there is no temptation to do any malingering. If, unfortunately, the man dies his widow will be drawing for herself and the dependent children £1 2s. 6d. a week.
Under a system such as that, surely it could be arranged that a man ought to be entitled to the few shillings of sick insurance and that his benefit should be kept alive by his contributions being paid. I have heard men suggest that they would be quite prepared, even out of their Unemployment Insurance money, to pay their share of the State insurance, just as if they were employed rather than that they should be put into the category of drawing the lesser sum if they are sick. These matters ought to be taken into consideration by a committee of inquiry. I hope that we shall hear before the debate closes a definite statement as to whether or not this matter is to receive consideration either by a Commission or a Committee, or whether we are simply to go along for another 12 months in the hope that something will turn up. The right hon. Gentleman must know that nothing will turn up to alter the conditions under which we are working. He knows that 12 months hence he or whoever occupies the position of Minister of Health will have to apply to Parliament again for a further term of prolongation. Why not have the matter referred to a responsible committee or commission, and ask them to report to the House, so that we can deal with the matter?
In so far as the problem with which we are dealing tonight is an unemployment insurance problem, that is to say in so far as the problem of health insurance with which we are dealing to-night relates to unemployment insurance, I have no doubt that the Royal Commission will consider the matter. The matter is now before the Cabinet Committee which is considering the question of social insurance. It is not an easy problem to deal with satisfactorily, but I think I can assure the House that before another year is over we shall be in a position to make definite constructive suggestions to deal with the problem. I cannot undertake that it shall go to the Royal Commission specifically or that we shall alter the terms of reference, as suggested by the hon. Member. My own impression is that in so far as the question does raise the point of unemployment insurance, the Commission will deal with it. In any case, it will be dealt with by the inquiries that are being made.
By leave of the House, I should like to say that after the undertaking given by the right hon. Gentleman, which meets all that we have asked for to-night, that there shall be an inquiry and report in sufficient time for this matter to be dealt with next year. I am sure that my hon. Friends behind me will not desire to pursue the matter further, and that we shall be glad to let the right hon. Gentleman have the remaining stages of the Bill.
Question put, and agreed to.
Bill read a Second time.
Resolved, "That this House will immediately resolve itself into the Committee on the Bill."—[ Mr. A. Greenwood .]
Bill accordingly considered in Committee and reported, without Amendment; read the Third time, and passed.
Supply
REPORT [16th December.]
Civil Estimates, Supplementary Estimate. 1930
Class VI
Resolutions reported,
"1. That a Supplementary sum, not exceeding £80,000, be granted to His Majesty,
"2. That a Supplementary sum, not exceeding £10,000, be granted to His Majesty, to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1931, for the Salaries and Expenses of the Department of Agriculture for Scotland, including Grants for Land Improvement, Agricultural Education and Training, Loans to Co-operative-Societies, a Grant under the Agricultural Credits (Scotland) Act, 1929, a Grant in respect of the Hebridean Drifter Service, and certain Grants-in-Aid."
First Resolution agreed to.
Second Resolution read a Second time.
Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."—[ Mr. Johnston .]
I am rather curious about this Supplementary Estimate. It is for a sum of £10,000 out of £80,000. The proportion does not seem the usual one. Can we have an explanation?
It is one-eighth instead of the usual ninth. Therefore, we are better off.
Question put, and agreed to.
Electricity (Supply) Acts
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of the burgh of Buckie, in the county of Banff, which was presented on the 3rd day of December, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, for the transfer of the undertaking authorised by the Abersychan Electricity Special Order, 1921, which was presented on the 2nd day of December, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of the borough of Stamford, in the parts of Kesteven, in the county of Lincoln, which was presented on the 2nd day of December, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of part of the second or Aird district of the county of Inverness, which was presented on the 2nd day of December, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of part of the rural district of East Grinstead, in the administrative county of East Sussex, which was presented on the 2nd day of December, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1923, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of the borough of Abergavenny and part of the rural district of Abergavenny, in the county of Monmouth, which was presented on the 26th day of November, 1930, be approved."
Resolved,
"That the Special Order made by the Electricity Commissioners under the Electricity (Supply) Acts, 1882 to 1928, and confirmed by the Minister of Transport under the Electricity (Supply) Act, 1919, in respect of portions of the parts of Kesteven and Lindsey, in the county of Lincoln, which was presented on the 20th day of November, 1930, be approved."—[ Mr. Herbert Morrison .]
The remaining Orders were read, and postponed .
Adjournment
Resolved, "That this House do now adjourn."—[ Mr. T. Kennedy .]
Adjourned accordingly at Four Minutes before Ten o'Clock.