House of Commons
Monday, March 30, 1931
The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.
Private Business
Guildford Gas and Cranleigh Electricity Bill.
Read the Third time, and passed.
Great Western Railway Bill,
London and North Eastern Railway Bill.
As amended, considered; to be read the Third time.
Mid Southern District Utility Bill (changed from "Aldershot Gas, and District Lighting Bill").
Order read for consideration, as amended.
May I ask the Chairman of Ways and Means whether this is only a change of name, or whether any other alteration is involved?
My hon. Friend should have given me notice of his question if he wants to know the exact area covered by the new title of the Bill. I understand the altered title is to make more clear the area comprised in the Bill.
As amended, considered; to be read the Third time.
Carnegie Hero Fund Trust Bill [ Lords ].
London Assurance Bill [ Lords ].
Lowestoft Water and Gas Bill [ Lords ].
Read a Second time, and committed.
Street Accidents Caused by Vehicles and Horses
Address for
"Return showing the number of accidents resulting in death or personal injury known by the police to have been caused by vehicles and horses in streets, roads, or public places, and the number of persons killed or injured by such accidents in Great Britain during the year ended the 31st day of December, 1930 (in continuation of Parliamentary Paper, No. 122, of Session 1929–30)."—[ Mr. Short. ]
Oral Answers to Questions
India
Cinematograph Films
asked the Secretary of State for India whether he has received any information as to the country of origin of the four films that have recently been prohibited from exhibition in India; and will he give particulars?
I have been asked to reply. Two of these films are of Indian and two of American origin.
Can the hon. Member say on what grounds these films have been prohibited?
I am sorry, but I cannot give that information.
Will my hon. Friend get the information and send it to me?
I will convey the request to my right hon. Friend.
Prisoners
asked the Secretary of State for India how many prisoners are still in gaol for political offences; and whether all prisoners covered by the recent Delhi agreement have now been released?
I am circulating in the OFFICIAL REPORT a table giving the position on the 26th March.
Can the hon. Member say whether all prisoners have now been released under the agreement?
The answer gives the number of prisoners who have been released. I understand that there is a number of cases still being considered.
May I ask whether the hon. Member will ask the Secretary of State for India to consider the release of other prisoners including the Meerut prisoners?
No!
Following is the table:
Federal Structure Committee
asked the Secretary of State for India whether he can state the names of the proposed federal structure committee, the terms of reference, if any, and when it will be meeting?
My right hon. Friend is not yet in a position to give this information.
Can my hon. Friend give any indication when the Secretary of State will be in a position to make a statement?
My right hon. Friend is not yet in a position to say when he will be able to do so.
Murder, Benares
asked the Secretary of State for India whether his attention has been drawn to the murder of a dealer in foreign cloth at Benares on the 10th February and to the fact that this man in his dying statement mentioned the name of a Congress volunteer as his assailant; and whether the accused man has been arrested?
Yes, Sir. The Secretary of State is aware that such a statement was made, but he has no information as to the second part of the question.
Will the hon. Member suggest to the Secretary of State that he might inquire as to whether the murderer has been arrested?
Yes.
Engineering Students, Benares (Workshop Practice)
asked the Secretary of State for India if he will give information concerning the opportunities provided by the railway authorities in India to students from the engineering colleges at Benares for facilitating workshop practice in the railway workshops on the Indian state railways?
My right hon. Friend regrets that he has no information. The matter is not one on which the Government of India would consider it necessary to consult him or to furnish him with details.
International Labour Conference (Delegation)
asked the Secretary of State for India if he is in a position to inform the House of the personnel of the Indian delegation to the forthcoming International Labour Conference at Geneva?
The Secretary of State hopes to be in a position to make an announcement after Easter.
Broadcasting
asked the Secretary of State for India the total cost to Indian revenues of the maintenance of the services taken over from the Indian Broadcasting Company; and what part of this cost is met by receipts from the issue by the Government of India of wireless receiving licences?
I am circulating a statement in the OFFICIAL REPORT giving particulars of expenditure and income for the period 1st April to 30th September, 1930.
Following is the statement:
Conference Proposals (Burma)
asked the Secretary of State for India whether he can yet make any statement as to the carrying on of the proposals of the Round Table Conference for the future government of Burma?
It is not yet possible to say anything on this subject.
Disturbances (Casualties)
10 and 11.
asked the Secretary of State for India (1) the total number of lives lost and the number of police killed, respectively, in disturbances of all kinds in the provinces of Madras and Bombay during the years 1925, 1926, 1927, 1928, 1929, and 1930;
(2) the total number of lives lost in disturbances of all kinds in Calcutta during the years 1925, 1926, 1927, 1928, 1929, and 1930, respectively?
It is regretted that such statistics are not available, but if the hon. Member so desires, the Government of India will be asked to inquire from the local Governments in question whether the figures could be compiled without undue labour.
Will the hon. Member ask the Secretary of State to obtain these figures?
I will convey the hon. Member's request to my right hon. Friend.
asked the Secretary of State for India if he has received a report of the fighting in the Insein and Tharawaddy districts of Burma; and what casualties were caused thereby?
My right hon. Friend received a report that two half companies of Punjabis had been engaged in the Insein district, and that it had been found necessary to patrol a section of the railway line in the Tharawaddy district with an armoured train. No details have been received regarding the incidents reported in the Press last week which appear to have been merely local skirmishes.
Riots, Cawnpore
asked the Secretary of State for India if he has now received a report of the rioting in Cawnpore; and if he cam state the cause of the outbreak?
asked the Secretary of State for India how many persons have been killed and injured as a result of the outbreak in Cawnpore; and whether conditions there are now quiet?
The rioting followed an attempt to force Mohammedan shop-keepers to close their shops in protest against the executions at Lahore. Daily reports have been received. A report received from Cawnpore this morning states that feeling is getting better and that the situation in the city this morning is perfectly quiet. No case of arson or murder occurred during the night; some of the mills were starting work this morning, and some shops were being opened. The number of dead registered at the cavil hospital amounts to 141 and the number of injured treated is 386.
As this appears to be the most serious outbreak that has ever occurred in this part of India, I beg to give notice that I will refer to this matter on the adjournment this evening or to-morrow in order to ask certain questions.
asked the Secretary of State for India what special measures or ordinances have been imposed by the Government of India in view of the riots which have occurred following the recent executions?
No ordinance has been promulgated by the Governor-General nor have the Government of India taken any special measures. The rioting at Cawnpore has been dealt with by the local authorities in accordance with their powers under the ordinary law.
Mr. Gandhi
asked the Secretary of State for India whether he will give the actual terms of the telegram he recently despatched to Mr. Gandhi with regard to the Round Table Conference and the discussion of constitutional safeguards?
My right hon. Friend has sent no such telegram.
Questions
China (Father C. Tierney)
asked the Secretary of State for Foreign Affairs whether he can now make any statement concerning the safety of Father C. Tierney, of the St. Columba's Mission, at Keinchang; and whether he has any information concerning the murder of two American women missionaries last week?
His Majesty's Minister in China is unable as yet either to confirm or to deny the rumour that Father Tierney is dead. Sir Miles Lampson is in frequent communication with the Minister for Foreign Affairs who, on Wednesday last, undertook to telegraph again to the local authorities. The latter have already been instructed to spare no means to secure Father Tierney's release and are prepared to pay the ransom demanded by the bandits, if he is still alive and his release can thereby be obtained. A special messenger, who has been sent to the locality by the Chinese Government to obtain all possible information is expected back at Nanking on the 3rd of April. I have no information apart from statements in the Press regarding the reported murder of two American women missionaries.
Germany and Austria (Proposed Customs Union)
Statement by Mr. Henderson
asked the Secretary of State for Foreign Affairs (1) whether he can now communicate to the House any further information relating to the projected Austro - German Customs scheme; and whether he will make a statement as to its bearing upon the Treaty of St. Germain or the Geneva Protocol of 1922?
24 and 25.
asked the Secretary of State for Foreign Affairs (1) whether the German and Austrian Governments have offered any explanation of their failure to give earlier information to His Majesty's Government of the fact that they were negotiating a Customs union, thus leaving His Majesty's Government to glean their first information of the agreement from the French Ambassador;
(2) if he can make a full statement to the House as to the terms of the preliminary agreement for a Customs union concluded between Germany and Austria, and say what steps His Majesty's Government propose to take to determine whether the agreement conforms to the provisions of the Treaty of St. Germain and the Geneva Protocol of 1922, and how the Customs union, as explained by the two Governments, would affect the Most-Favoured-Nation Clauses of our commercial treaties with Germany and Austria?
asked the Secretary of State for Foreign Affairs if he will make a full statement to the House on the progress of the negotiations between Germany and Austria for the establishment of a Customs union; and what representations have been made to safeguard the interests of British trade in both those countries?
asked the Secretary of State for Foreign Affairs whether he is in a position to give the House any information with regard to the proposed Austro-German Customs agreement and its possible effect upon British commercial interests?
The answer to these questions relating to the German-Austrian Customs union is very long, and I desire, Mr. Speaker, to ask you whether it would not be more convenient if I made my statement on the subject at the close of Questions.
I think that course would meet the wishes of hon. Members.
At end of Questions —
I propose to try, in reply, to give the House a general but concise account of the course of events and of the action taken and contemplated by His Majesty's Government in reference to the proposed Austro-German Customs Union. On Saturday, 21st March, the Austrian Minister called on the Permanent Under-Secretary of State to inform him on the instructions of his Government that the German and Austrian Governments had decided that negotiations for a customs union should be entered upon immediately; that both were ready to enter into negotiations for a similar agreement with any other European State; and that the basis of negotiations must be the maintenance of the full sovereignty and independence of participating States. On Monday morning of last week, just as I was leaving for Paris, the German Ambassador saw me at the Foreign Office. Among other points mentioned was the proposed customs union between Germany and Austria. The Ambassador confirmed and endorsed the statements made by the Austrian Minister on Saturday, 21st March. Later on the same day the Austrian Minister said that his Government in no way intended to face foreign Governments with a customs union as an accomplished fact. On this day also (Monday the 23rd) the Austrian Minister and German Ambassador left at the Foreign Office copies of the preliminary agreement concluded between Austria and Germany. I am circulating a translation of this in the OFFICIAL REPORT. The French Ambassador also handed to me at Victoria Station and left at the Foreign Office a memorandum to the effect that the French Government considered the proposed agreement to be a violation by Austria of Protocol No. 1 of October, 1922, and by both Germany and Austria of the commercial treaties between France and these countries, and had so informed the Austrian and German Governments.
The method and the time chosen by the Austrian and German Governments for conveying the information to the other interested Governments has rightly provoked widespread comment.
Hear, hear.
I will content myself with saying that this method is calculated to raise suspicions and to nullify the advantages for the frank exchange of ideas offered by the now frequent meetings at Geneva and elsewhere between the representatives of the various Governments.
The initial reception given by me to the various statements and memoranda to which I have referred was one of reserve. It was at once apparent to me that hurried decisions were not compatible with the nature of the case, but on the contrary that points of law were involved which demanded expert advice and mature deliberation. On my arrival in Paris I found French opinion in a state of very natural perturbation. After carefully considering the issues involved, I came to the conclusion that the matter was eminently one which came within the competence of the Council of the League of Nations. Accordingly I decided on Wednesday the 25th to inform the German and Austrian Governments that they should be under no misapprehension as to the serious misgivings aroused by their action in many countries and in France in particular. Though there might be two opinions as to the exact conformity of the proposed treaty with the existing obligations of Austria, and indeed of Germany, the widespread state of feeling to which I have referred caused me great concern, and I felt that if nothing were done to calm existing apprehensions the task of those who were anxious that the Disarmament Conference should meet under the most favourable conditions would be seriously compromised by any apparent disregard by unilateral action or interpretation of any treaty obligations.
I caused these considerations to be submitted to the German and Austrian Chancellors with all the emphasis which the circumstances in my opinion demanded, and I appealed to them that before they proceeded further an opportunity should be given to the Council of the League of Nations, under whose auspices the protocol of 1922 was negotiated, to assure itself that the proposed treaty was not contrary to the obligations undertaken by Austria in that instrument. I informed M. Briand at once of the action I had taken and he assured me that the procedure which I contemplated would fully meet the views of the French Government.
On the following day, 26th March, I received the reply of the Austrian Government. It was to the effect that they were of the opinion that the proposed agreement was quite in conformity with the Geneva Protocol of 1922. They did not object to the legal aspect of it being examined by the Governments which signed the Geneva Protocol. To examine the agreement from the political standpoint would however be out of the question considering its economic character. The Austrian Government had had no intention of facing us with a fait accompli.
The German Government replied that the Austro-German agreement was entirely within the framework of the Geneva protocol of 4th October, 1922. Therefore, in their opinion there was no reason why the Council of the League of Nations should take up the matter. The two Governments had nothing to fear if the other Governments proceeded to an examination of the juridical aspect of the question, but the German Government could not admit an examination of the Agreement by the Council of the League from a political standpoint, as the Agreement was of a purely economic character. The negotiations would naturally have to take their course, and, having regard to the numerous technical details which had to be settled, could not be concluded before two or three months had elapsed.
I regarded the Austrian answer as less open to question than the German answer, which might be held to imply that an examination of the juridical aspect of the question would have to be conducted without their co-operation, and expressed the intention of continuing negotiations with Austria in the meantime. Thinking that the German Government had perhaps misapprehended my suggestion, I telegraphed to Berlin on the 26th of March, saying that my suggestion had been simply to the effect that, before the two Governments proceeded further, an opportunity should be given to the Council to assure itself that the proposed treaty was not contrary to the 1922 Protocol. It was possible that the Council would be reluctant to pronounce on so technical and juridical a question without seeking an opinion from the Permanent Court of International Justice, and I should support such a procedure.
The German Government replied on the same day that they had perfectly understood my proposal; that the negotiations contemplated between the two Governments would take two or three months at least; that the German Government, for their part, saw no reason to refer the proposed treaty to the League Council since they were satisfied that it was not contrary to the Protocol of 1922; that the Powers signatory to the Protocol were, of course, at liberty to refer the Treaty to the Council, but that the German Government must reserve complete liberty of action with regard to any procedure which may be suggested to the Council. The German Government did not understand my proposal to refer the Treaty for examination to the Council as suggesting its examination from a political standpoint, but wished to make it clear that, in their view, an examination from such a standpoint was not admissible.
That is how things now stand. It is my intention to give notice to the Secretary-General of the League of Nations of my wish to discuss at the next Council meeting the compatibility of the proposed Agreement with Austria's treaty obligations, particularly under the Protocol of 1922; and if there is a general desire that the Council should be assisted by an Advisory opinion from the Permanent Court of International Justice, I shall certainly support a reference to that Court. The Austrian Government will, of course, in accordance with the standing rules, be invited to participate in these discussions, and the communication from them which I have just quoted implies, I am glad to say, that such an invitation would be accepted. The German Government's response to my explanations recognises, as I understand it, the propriety of a reference to the Council while reserving their rights in respect to any procedure there proposed to be followed.
I am glad from this to infer that the other members of the Council will have the benefit of the German view of the question submitted—a question, I may add, so eminently and incontestably suitable for such procedure; and I earnestly hope that it may be found, when the time comes, that negotiations between the Austrian and German Governments will not have been so advanced as to prejudice the friendly atmosphere in which matters are normally dealt with by the Council. In the confident expectation that my hopes will be realised, I ask you, in passing, to direct your particular attention to the inestimable benefit which the existence of the League machinery confers on States Members confronted, as we all have been, during the last few days, with a situation which might, in other circumstances, have continued to generate hotter feelings and harder words.
There are four points of interest and importance arising out of these events, on which the House will wish to receive information. In the first place, a divergence of view has been revealed as to whether the Council of the League or some special subsidiary organ is the proper forum for discussion in the first instance of the legal aspects of the proposed Agreement. I have the best authority for saying that the constitution and rules of the League require that this should be the Council, under whose auspices the Protocol of 1922 was negotiated; and I have framed my proposal accordingly. As I have already said, Austria will presumably be represented ad hoc.
Secondly, there is the question of what view His Majesty's Government take of the various legal questions involved. These have been referred to the Law Officers of the Crown, and it would not be proper for me now to anticipate the opinion that will be given. I must repeat that, as I have already informed the German and Austrian Governments, the attitude of His Majesty's Government must be one of complete reserve.
Thirdly, there is the question of the relation of the proposed Customs Union to the most-favoured-nation clauses in our commercial treaties with Austria and Germany. So far as the latter is concerned, no doubt can arise. Article 4 (2) of the Anglo-German Treaty of Commerce of 1924 specifically excepts from the provisions of the Treaty any benefit accorded to any country linked or to be linked with Germany by a Customs Union. A similar clause does not, however, figure in the Franco-German Treaty. The Anglo-Austrian commercial treaty of 1924 contains no such clause.
Finally, there is the question of how British trade would be affected should a Customs Union on the lines so far planned come into existence. Any answer to this must be speculative, at least at present. At this stage, and on the scanty information hitherto available, I can only say that the matter is being carefully studied by the Departments concerned.
In conclusion, I would reiterate and emphasise that the pursuit—I hope the unanimous pursuit—of the line that His Majesty's Government has already laid down offers the best, indeed the only proper, solution of an episode that has caused a regrettable perturbation in Europe.
Following is the translation of the preliminary agreement:
PROTOCOL.
"In the course of the conversations which took place in Vienna at the beginning of March, 1931, the German Government and the Austrian Government agreed to enter forthwith into negotiations for a treaty to assimilate the tariff and economic policies of their respective countries on the basis and within the limits of the following principles.
I.
(1) The treaty is destined to mark the beginning of a new order of European economic conditions on lines of regional agreements, of the two countries being fully maintained and due respect being paid to the obligations undertaken by them towards third States.
(2) More especially both parties will in the treaty declare their willingness to enter into negotiations for a similar agreement with any other country expressing such a desire.
II.
(1) Germany and Austria will agree on a tariff law and a customs tariff which shall be put into force in both customs territories concurrently with the treaty and for the period of its validity.
(2) During the validity of the treaty amendments to the tariff law and the customs tariff may only be effected in virtue of an agreement of both parties.
III.
(1) As long as the treaty remains in force the exchange of goods between the two countries shall not be subject to any import or export duties.
(2) The two Governments shall agree in the treaty whether provisional tariffs will be necessary, and, if so, for which specified categories of goods and for which period.
IV.
(1) The two Governments shall agree to stipulations in the treaty concerning a provisional arrangement regarding interchange in respect of the turnover tax and as to such goods for which, at the present time, monopolies or excise duties are in existence in either of the two countries.
V.
(1) The Customs Administration of each of the two countries shall be independent of that of the other and shall remain under the exclusive control of the Government of its respective country. Furthermore each country shall bear the expenses of its own Customs Administration.
(2) Both Governments whilst fully respecting the above principle, will assure by special measures of a technical character the uniform execution of the tariff law, the customs tariff and the other tariff regulations.
VI.
(1) In the German customs territory the customs duties shall be levied by the German customs authorities and in the Austrian customs territory by the Austrian customs authorities.
(2) After deducting the special expenses arising out of the application of the treaty the amount of the duties received shall be apportioned between the two countries according to a quota.
(3) In the agreements to be made regarding this point care will be taken not to prejudice the liens on customs revenues existing in either country.
VII.
(1) No import, export or transit prohibitions shall exist between Germany and Austria. Such exceptions as may prove to be necessary for reasons of public security, public health or similar grounds shall be specified in the treaty as precisely as possible.
(2) In place of the Convention on Animal Disease concluded between Germany and Austria on 12th July, 1924, the two Governments will conclude as soon as possible, not later than one year after the entry into operation of the treaty, and put into force a fresh agreement regulating the traffic of animals and animal products between Germany and Austria under the same conditions in accordance with the same regulations as govern internal traffic in Germany and Austria.
VIII.
The rights appertaining to individuals and juridical persons of the one party in the territory of the other in respect of settlement, industry, taxation, etc., shall be regulated in the treaty on the basis of the relevant provisions of the Austro-German Commercial Treaty now in force. On the same basis regulations shall also be agreed upon concerning railway and shipping traffic between the two parties.
IX.
(1) Each of the two Governments, even after the entry into force of the treaty, shall retain in principle the right to conclude commercial treaties with third States on their own behalf.
(2) In such negotiations with third States, the German and the Austrian Governments will take heed that the interests of the other contracting party are not infringed by the text and object of the treaty to be concluded.
(3) So far as it seems opportune and possible with a view to effecting a simple, speedy and uniform settlement of the commercial relations with third States, the German Government and the Austrian Government will conduct joint negotiations for the conclusion of commercial treaties with third States. Even in this case, however, Germany and Austria will each sign and ratify a separate commercial treaty on their own behalf, and will only arrange together for a simultaneous exchange of the ratifications with the third State in question.
X.
The two Governments will take the necessary steps in due time to bring into accord with one another and with the contents and object of the treaty, the existing commercial treaties concluded by Germany and Austria with third States so far as they contain obligations respecting customs tariff rates or so far as they might impair the execution of the existing import and export prohibitions and other regulations on the exchange of goods.
XI.
(1) To ensure a smooth working of the treaty an Arbitral Committee shall be provided for therein composed on the lines of complete parity of members of the two parties. This Committee will have to deal with the following matters:
( a ) settlement by arbitration of differences of opinion arising between both parties as to the interpretation and application of the treaty;
( b ) to bring about a compromise in such cases where the treaty provides for a special agreement between both parties or in which according to the text of the treaty the realisation of the intentions of the one party depends upon the consent of the other, provided that in such cases agreement cannot be reached between the two parties.
(2) A decision of the Arbitral Committee in cases ( a ) and ( b ) referred to above shall have binding effect on both parties, a majority of votes being sufficient. The President of the Committee shall have a casting vote. Complete parity in choosing the President from time to time shall be provided for in the treaty.
(3) Should either of the two Governments be of the opinion that the decision of the Arbitral Committee in any of the cases mentioned under 1 ( b ) infringes its vital economic interests, it shall be entitled to terminate the treaty at any time on giving six months' notice. Such notice of termination may also be given during the first period of three years mentioned under XII (2).
XII.
(1) The treaty to be concluded shall be ratified and shall enter into operation at the end of a period to be fixed in the treaty which extends from the date of the exchange of ratifications.
(2) The treaty may be denounced at any time upon one year's notice, but not before the end of the third year after its entry into force except in the case mentioned under XI (3).
(3) Notice may only be given in virtue of a law to be enacted by the country denouncing the treaty.
If I may say so, I entirely agree with the course which the right hon. Gentleman is taking in endeavouring to secure that the matter shall be discussed at Geneva. I want to ask one supplementary question; whether the right hon. Gentleman is going to raise the question by itself under its own title, so to speak, at the Council of the League, or whether he proposes to refer to any particular Article in the Covenant in connection with the discussion, for instance Article XI?
No, I simply propose to give notice that I am going to raise the question. I am not quite sure at the moment, until I have had legal advice, as to which Article, if any of the Articles, it is necessary to quote.
Arising out of the question which I have on the Order Paper, may I ask whether, according to Article 264 of the Treaty of Versailles, Germany is not precluded from allowing Austrian goods to enter free of duty, and, if she persists in doing that, would not Great Britain be entitled, under Article 264, to obtain the same privileges?
I think I must ask the House, until legal advice is obtained, to leave the matter where my statement left it.
Has the right hon. Gentleman any information as to whether any other country desired or has shown any intention or desire to come into this Pact between Austria and Germany?
I think most of the information I have is that other countries are not at the moment inclined to come in, but rather inclined to quarrel.
Russia
Labour Conditions
asked the Secretary of State for Foreign Affairs if his attention has been drawn to the announcement made by Mr. Molotov, chairman of the Council of People's Commissars in the Union of Socialist Soviet Republics, on the 8th March that representatives of foreign States in Moscow are free to visit the forests and to ascertain for themselves whether the labour is forced or not; and whether he will issue instructions to our Ambassador in Moscow to avail himself of this privilege?
asked the Secretary of State for Foreign Affairs what action he proposes to take in view of the announcement by the trade representative of the Soviet Government in this country that it has been decided by the Soviet Government to throw open all the areas in Russia where timber camps exist to all the embassies at present established in Russia?
Statements have appeared in the Press of Monsieur Molotov's announcement. This, however, was limited to an inquiry by members of foreign missions and foreign Press correspondents in the Soviet Union. I am informed that several Press correspondents are proceeding to the timber camps. I have consulted His Majesty's Ambassador at Moscow, and am convinced that no investigation other than one carried out by fully qualified experts would be effective, and to such an investigation the Soviet Government maintain their objection. I do not propose, therefore, to instruct His Majesty's Ambassador to undertake an inquiry of the nature suggested.
Would it not be possible for the British Ambassador to go accompanied by experts?
I have tried to make it clear that I think it highly inadvisable that officials of the Embassy should be used for such a purpose as this, especially against the will of the Government to whom they are accredited.
Did not M. Molotov state that representatives of foreign States, which means the foreign Ambassadors, were invited specially to go and make inquiries?
I have already answered that question.
Has the right hon. Gentleman ascertained that the Soviet Government still objects to the visit of experts, that is since the date when the statement was made that they would permit the representatives of foreign Governments to go?
I do not know that the Ambassador has put it in that way. He is very firm in his position that no such investigation would be effective. I would have to communicate with him afresh if the right hon. Gentleman presses that point.
I am asking whether the Ambassador is still of opinion that an examination by experts would be ineffective, and, if not, whether the right hon. Gentleman would now make a second request as to whether an examination by experts would be allowed?
I will look into that side of the question.
According to the Blue Book published—
Sir Kingsley Wood.
State Bank
asked the Secretary of State for Foreign Affairs whether his attention has been drawn to the decree of 20th March, issued by the People's Commissars of Soviet Russia, relative to the State bank returning to the methods of capitalistic bankers; and whether he will obtain a copy of this decree and give this House a summary of its provisions?
The decree to which the right hon. Gentleman refers was published in "Izvestiya" on the 21st of March. It is lengthy and difficult to summarise, but I am sending the right hon. Gentleman a translation.
Lena Goldfields (Arbitration Award)
asked the Secretary of State for Foreign Affairs whether he can now give the House particulars of the reply of the Russian 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, given on 2nd September, 1930, as well as the result of any subsequent negotiations?
asked the Secretary of State for Foreign Affairs whether he is yet in a position to give further information with regard to the payment of the Lena arbitration award?
My Department continues to be in close touch with the company, and His Majesty's Ambassador at Moscow is at present engaged in negotiations with the Soviet Government on their behalf. While these negotiations are still proceeding, I do not consider that any further statement would serve the interests of the company.
Is the right hon. Gentleman aware that nearly seven months have now passed since the award of £13,000,000 was given, and the company has not received a single penny? Will he press the Ambassador to expedites matters?
I do not know that I can do more by way of pressing the Ambassador. I have been myself on several occasions in touch with the representatives of the company, and I can assure the hon. Member that we are doing everything we can.
In view of the very heavy export credit guarantees that we give to Russia, has the right hon. Gentleman not considerable powers, and will he not exercise them?
I do not think that that arises from the original question.
British Relations (Canada)
asked the Secretary of State for Dominion Affairs whether there have been any exchanges of views with Canada in regard to co-operation in our mutual diplomatic and economic relations with Soviet Russia?
There has been no recent correspondence with His Majesty's Government in Canada of the general character indicated by the hon. and gallant Member.
Is it not desirable that the British Empire should act as one unit in these matters?
We would be delighted, but, as the hon. and gallant Member knows, the Dominions often take views of their own in all these matters.
As the right hon. Gentleman said that he would be delighted, will the Government take the same steps as Canada has done to preclude the importation into this country of timber obtained under conditions with which we in this country do not agree?
Ships Chartered, Cardiff
asked the President of the Board of Trade the number of ships and total tonnage which have been chartered at Cardiff by Russian Soviet agents; the terms upon which the ships are chartered; and when the negotiations are likely to be completed?
From such information as I have been able to obtain, I understand that among the vessels recently chartered by Soviet agents there were some 10 Cardiff owned vessels of about 48,000 tons deadweight chartered at Cardiff. I am not in a position to give information as to the terms or the negotiations.
Will the hon. Member make inquiries of the captains of these vessels as to the conditions obtaining in the timber trade in Russia?
Trade and Commerce
Europe (Economic Union)
asked the Secretary of State for Foreign Affairs whether he can make a statement as to the attitude of the Government towards the proposal for the formation of an European Economic Union?
asked the Secretary of State for Foreign Affairs if he is in a position to make a statement to the House on the proceedings of the conference at Paris for the federal union of Europe which took place on the 24th instant, and at which he was present as the representative of His Majesty's Government?
asked the Secretary of State for Foreign Affairs whether he can inform the House of the results of the conversations on European union which took place last week in Paris?
Meetings were held on Paris, on the 24th and 25th of March, of the Sub-Committee on Organisation of the Commission of Inquiry for European Union. The sub-committee was able to agree upon a draft agenda for the next session of the commission, which is fixed to begin on the 15th of May at Geneva. The agenda calls for the examination of certain proposals for the better organisation of the future work of the commission, and of various economic questions, such as the disposal of grain surpluses in Central and Eastern European countries, agricultural credits and unemployment.
Will this involve any denunciation of the commercial treaties that we have with European countries?
I do not think so.
Dominica
asked the Secretary of State for Foreign Affairs whether he can make a statement in regard to affairs in Dominica and as to what are our trading relations with the Republic since the dismissal of judges who ruled in favour of the Bank of Nova Scotia in the action brought by the Michelina family?
So far as I am aware, complete order prevails in Santo Domingo, whose relations with this country are both normal and friendly. Any reorganisation that may have occurred in the Dominican judiciary is not a matter which concerns His Majesty's Government.
Are not the Government proposing to take any action, seeing that the judges have been dismissed because they ruled in favour of the British company?
The matter has been very closely watched by the representatives of His Majesty's Government, but they are not proposing to take any action on the lines suggested by the hon. and gallant Member.
We make the suggestion that you should take action.
Exhibition, Buenos Ayres
asked the Secretary to the Overseas Trade Department if he will make a statement on the success achieved by the British Empire Trade Exhibition at Buenos Ayres; and if it is intended that the exhibition shall be extended beyond 27th April?
Reports received from Buenos Ayres indicate that the British Empire Trade Exhibition has achieved a great success. In a telegram received by the London management of the exhibition, after the departure of Their Royal Highnesses, the Prince of Wales and Prince George, it was stated that the exhibition had been universally pronounced to be the most arresting event which Buenos Ayres has ever witnessed. In addition, I may say that Sir Herbert Gibson, the Chairman of the Executive Committee of the exhibition, spoke to me on the telephone on Friday last from Buenos Ayres, and informed me that the exhibition was enjoying an unqualified success. He informed me that up to that date the attendance had already exceeded 300,000. I understand that the exhibition management do not at present contemplate the extension of the period of the exhibition beyond the 27th April.
While thanking the hon. Gentleman for his very satisfactory reply, may I ask if he will undertake, following upon that expression, that the activities of the Department in the development of trade with the Argentine will be intensified as much as possible?
We are already doing so, and shall continue to do so.
Suez Canal (Dues)
asked the President of the Board of Trade if he will, in view of the fact that the British Government holds 44 per cent. of the shares and certificates of the Suez Canal Company, request the appropriate economic committee to ascertain and report whether the scales of the Suez Canal dues are of such a nature as to act as a restriction on the export of British goods to the East?
The whole question of the level of the Suez Canal dues is at present under consideration, but I do not think that any useful purpose would be served by instituting a special inquiry of the kind suggested in the question.
Is the hon. Gentleman aware that the officials of the Suez Canal issued a statement last week, in which they said that, owing to the aggressive manner in which claims of British traders for a reduction of the dues had been presented, they were not disposed to reduce the dues; and will he ask His Majesty's representatives on the Board to protest against such language, as its tone is regarded by British traders as an impertinence?
I have seen the notice referred to, but I do not think that it will disturb the answer which I have given, that it is still under consideration.
Will the hon. Gentleman tell our representative that language of the kind referred to will not be tolerated by British interests, who are the largest customers of the Canal?
Does not the hon. Gentleman see the great importance attached by British shipping interests to this matter, and is he not satisfied that in any action he sees fit to take he will have their full support?
The Board of Trade are fully seized of the importance of this question, but we have not absolute control.
Questions
Mexico (Debt Agreement)
asked the Secretary of State for Foreign Affairs whether he will obtain from the international committee of bankers, who signed the supplementary debt agreement with the Mexican Minister of Finance on 29th January last, an explanation of the condition that the silver coin deposited in the bank of the city of Mexico for the Mexican debt services is to be totally immobilised during the validity of the supplementary agreement, and an explanation of a similar arrangement concerning $5,000,000 (United States) in silver deposited in the National Bank of Mexico?
I would refer the hon. Member to the very full reply given to the hon. Member for Aylesbury (Mr. Beaumont) on the 18th March, to which I have nothing to add.
asked the Secretary of State for Foreign Affairs if he will state the date upon which the Mexican congress approved of the supplementary debt agreement signed by the Mexican Minister of Finance on 29th January last?
The new Agreement has not yet been submitted to the Mexican Congress.
What good, therefore, is the reply about the agreement referred to in Question 34, if it is not confirmed?
We have to wait and see whether it is confirmed.
But this vague agreement is part of a default which has been running for the past 17 years.
Naval Armaments
asked the Secretary of State for Foreign Affairs whether he can make any statement as to the progress of the Franco-Italian Naval Agreement?
A drafting committee, on which France, Italy and Great Britain are represented, has been sitting for the purpose of putting into final form the bases of agreement already decided upon.
Is the United States of America in agreement with regard to that settlement?
They are being kept informed, but they are at present not represented on the committee.
League of Nations
Poland (Ukrainian Minority)
asked the Secretary of State for Foreign Affairs whether there is any information in the possession of his Department or of the League of Nations concerning the number of people belonging to the Ukrainian minority in Poland who were imprisoned during the pacification of the Ukrainians in September, October, and November, 1930, and who are still in prison?
I have at present no detailed information on these points, but the whole question of the treatment of the Ukrainian minority will be considered next month by the Committee of Three, of which I am a member.
International Labour Conference
asked the Minister of Labour whether His Majesty's Government has ratified, or intends to ratify, the draft convention concerning forced or compulsory labour adopted at the fourteenth session of the International Labour Conference held in June, 1930; and whether any and, if so, what other States have ratified?
I understand that this Draft Convention has already been ratified by Liberia and the Irish Free State. My right hon. Friend hopes shortly to be in a position to announce the intentions of the Government in regard to it.
asked the Minister of Labour whether she has considered the representations received from the National Council of Women that the Government delegates to the forthcoming International Labour Conference at Geneva should propose the postponement until June, 1932 of any decision on the revision of the Washington (1919) Convention concerning the employment of women at night, and should also propose placing on the agenda of the 1932 conference a full discussion of the question of prohibiting night work to women only; and whether the Government are prepared to carry out this suggestion?
The Government have had these proposals under consideration, but are not prepared to accept them.
Opium Traffic
asked the Secretary of State for the Home Department whether, at the conference to be convened by the League of Nations at Geneva in May next on the limitation of the manufacture of dangerous drugs, the production and distribution of opium will be included in the purview of the conference?
No, Sir. The question of limiting the production of raw opium is outside the scope of the Conference.
asked the Home Secretary whether he is aware that quantities of opium and its derivatives are being sent into China from Soviet Russia; and whether he will endeavour to obtain information from the League of Nations on this matter and communicate to the House the measures taken to check it?
No, Sir. My right hon. Friend is not aware that it is the case, as stated in the first part of the question, that quantities of opium and its derivatives are being sent from Russia into China and, in the circumstances, he does not see that any action is called for on the part of His Majesty's Government. If the hon. Member is in possession of any information and would like to forward it to my right hon. Friend, he would be happy to consider it.
Is not the hon. Gentleman aware of the repeated statements that intensive smuggling of opium goes on in China from Russia?
My right hon. Friend says that he has no evidence.
Naval and Military Pensions and Grants
Mental Institutions (Nurses)
asked the Minister of Pensions whether the board of control of the institutions dealing with cases of severe mental and nervous disorders have further considered the question that the male nursing staff employed in such institutions under his control should have the additional qualification of possessing a certificate; and can he state the present number of qualified male nurses employed in the institutions under his direct control?
In the temporary absence of my right hon. Friend, I have been asked to reply. The general position as regards the nursing staff in institutions of the kind referred to does not differ from that stated in the answer given to the hon. Member on the 15th December last, of which I am sending him a copy. My right hon. Friend points out that the standard which my hon. Friend suggests is one which the Board of Control have not found it practicable or desirable to advise in the case of the mental hospitals.
Will the hon. Gentleman make representations to his right hon. Friend that where necessity occurs in future certificated nurses should replace those who do not hold the necessary certificates?
The hon. Member's suggestion will be conveyed to my right hon. Friend.
Seven Years' Limit
asked the Minister of Pensions the number of applications submitted from ex-service men to the Ministry of Pensions for pension since the decision of the Government to abolish the seven years' limit; what is the number of such applications which have been admitted and pensions granted; and whether the Government will make a further notification of their decision in respect of the over seven years' cases in order that ex-service men may know that notwithstanding the lapse of seven years they may, if satisfied that they have good grounds, apply for disability pension?
During the 15 months which have elapsed since November, 1929, some 22,800 applications have been received in respect of fresh disabilities, including an undetermined number of renewed applications. During the same period 1,210 cases have been recognised by way of medical treatment or the award of compensation in the form of pension or other pecuniary grant. Full publicity has been given to the decision referred to, which my right hon. Friend has every reason to believe is well known, and a further announcement at the present time would, in his view, serve no useful purpose.
Will the hon. Gentleman communicate to his right hon. Friend the suggestion contained in the last part of the question, as many ex-service men are still unaware of the advantages to be gained in respect of "over seven years" cases?
Certainly.
Questions
Washington Hours Convention
asked the Prime Minister whether it has been decided by His Majesty's Government to ratify the Washington Hours Convention as it stands without any reservation, condition, or statutory interpretation?
The Government's policy is to ratify the Convention without reservation or condition. The Convention requires legislation to give it statutory effect, and the Hours of Industrial Employment Bill has accordingly been introduced.
Is it the fact that the Convention is only to be ratified subject to the statutory interpretation to be contained in an Act of Parliament?
The statutory interpretation depends on the interpretation of the Convention itself. The Act of Parliament is regulated by the wording of the Convention.
Is the right hon. Gentleman aware that before the last Socialist Government the ratification of this Convention was promised?
Yes. It is still going.
Will the interpretation of some of the most important terms of the Convention be agreed with the other signatories or ratifying countries?
I have taken this question on account of the responsibility for finding time. I think the details had better be put to the Department which has the matter in hand. I am sure that any question like that will be answered by the Ministry of Labour.
With all deference, may I still put it to the Prime Minister that the uniform interpretation of the most important terms is the most vital matter in the whole business?
asked the Minister of Labour whether the Hours of Industrial Employment Bill is required to be passed into law before the Washington Hours Convention can be ratified; and, if so, whether, in so far as the Bill is intended to control the operation of the Washington Hours Convention, the Convention will be interpreted and applied in the same way on the United Kingdom as in Italy and France respectively?
The answer to the first part of the question is in the affirmative. In reply to the second part, all nations ratifying the Convention assume identical obligations.
Can the Parliamentary Secretary say whether these identical obligations will be interpreted in the same way by the different nations?
I would point out to the right hon. Gentleman that two of the nations mentioned here have ratified conditionally, but in those particular countries the Convention will not operate until others begin to operate it.
That is no answer to my question. The question was whether the terms containing the obligations in the Convention will be interpreted in the same sense by different countries which are ratifying.
That remains to be seen, but a country has a right to criticise its operation in other countries only when it ratifies.
Will the hon. Gentleman take care that this country is not prejudiced in the interpretation put upon the Convention?
Hours of Industrial Employment Bill
asked the Prime Minister whether it is proposed to take any further stages of the Hours of Industrial Employment Bill at an early date; and whether he can make any statement as to the obstacles which have prevented any progress with the Bill since its re-introduction last November?
The Government proposes to take the further stages of the Hours of Industrial Employment Bill at the earliest practicable date. The hon. and learned Member may be aware that pressure of other business has made it impossible hitherto to proceed with the Bill.
Who is the main cause of the delay?
Representation of the People (No. 2) Bill
asked the Prime Minister whether it is proposed to make any changes in the Representation of the People (No. 2) Bill as a result of the decision of the House upon the question of university representation; if so, what the changes are; and to what extent will the time-table be amended to ensure an opportunity for their adequate discussion?
I am not yet in a position to add anything to what I have already said on this subject.
Will the right hon. Gentleman give the House due notice before the discussion of the Bill is resumed, as he will see at once that the action of the Government materially affects the Schedules and the time-table in connection with this Measure?
I am sorry to say that I fail to see the point of the last part of the question. The next day on which the Bill is put down will be announced in the usual way.
Does the Prime Minister not remember that one of the early days in the next stage of our discussions deals with the Schedules and that the Schedules are materially altered by the decision of the House, in reference to University representation?
Yes, but consequential changes will be made as consequential changes.
I am sorry to press the Prime Minister upon this matter, but does he not see that the House is acting upon a time-table and that the time-table is based upon the Bill in its original form? The decision at which the House arrived the other day materially alters that time-table, and the House must have any Government change in mind before we can deal with it under the time-table at all.
The block which includes these consequential alterations is a rather substantial one, and will provide, I am sure, to judge by our past experience, plenty of opportunities for discussion.
Lord Privy Seal (Duties)
asked the Prime Minister whether there is any alteration in the duties of the Lord Privy Seal; and whether questions affecting plans for relieving unemployment should be addressed to the Lord Privy Seal or to the other Departments concerned?
There has been no change in the position indicated in my reply to my hon. and gallant Friend on the 25th June last. Questions relating to particular measures for the relief of unemployment should continue to be addressed to the Departmental Ministers concerned, while those of a more general character may be addressed to the Lord Privy Seal.
To whom are questions to be addressed in regard to the industrial field—in regard to industrial affairs, as far as this subject is concerned?
I should say, generally, that questions relating to such matters as industrial reorganisation would be addressed to the President of the Board of Trade as hitherto. It all depends on the question itself.
I am asking about questions dealing entirely with industrial affairs. Industrial reorganisation is simply a matter of dealing with what already exists in the industrial field, but, if we are to make any advance, these questions must refer to something else besides the reorganisation of what exists. To whom are such questions to be addressed?
Overseas Trade Department (Typists)
asked the Secretary to the Overseas Trade Department what is the reason for the number of typists required by his Department for 1931, so that out of a total staff of 429, of whom 58 are employed in non-clerical labour such as messengers and storekeepers, 73 are typists, or approximately one-fifth of the entire clerical staff?
The Department of Overseas Trade differs considerably from other Government Departments in that it is largely a clearing house of information obtained from its overseas officers throughout the world. It has therefore heavy requirements in the way of typing staff and these requirements have, as a matter of fact, only recently been carefully reviewed.
Is the hon. Gentleman aware that the proportion of typists employed in his Department is much greater now than when he took it over?
The percentage of typists employed is much the same as that of some larger Departments doing similar work.
Does the hon. Gentleman not agree that the response of the business people, exporters and manufacturers, in this country has been greater under his control of the Department than heretofore?
Yes, that is so.
River Pollution
asked the Minister of Agriculture if his attention has been called to the resolution adopted by a conference on pollution held at Swansea, at which his representatives were present; and whether he will state what steps he is taking to prevent the further pollution of rivers?
I have been asked to reply. The resolution referred to by the hon. Member has been brought to my right hon. Friend's notice. The responsibility for taking steps to prevent the pollution of rivers rests with the local authorities, and my right hon. Friend is constantly pressing for action in the matter and also encouraging the formation of joint bodies for the purpose. During the last eight years loans of nearly £43,000,000 have been sanctioned by my Department for sewerage and sewage disposal, of which it is estimated that one-half was for sewage disposal and therefore for the protection of rivers from pollution.
Is the hon. Lady satisfied with the results of the work to which she refers; and is there not still a scandalous state of pollution of these rivers?
I think there is no doubt that the work has had a good effect.
But is the hon. Lady satisfied that it has been enough? Cannot more be done?
Agriculture
Colorado Beetle
asked the Minister of Agriculture what action he proposes to take to protect the potato and other vegetable crops in this country from the ravages of the Colorado beetle?
I have decided after full consideration that it is necessary to take further precautions against the introduction of the beetle into this country. The present regulations prohibit the importation from France of potatoes, tomatoes and living plants grown within 40 kilometres of any place where the beetle has been known to exist; an Order under the Destructive Insects and Pests Acts will be issued shortly extending the radius from 40 kilometres to 75 kilometres.
Is this pest increasing, or is it decreasing, like the Socialist majority?
Small Holdings (Shropshire)
asked the Minister of Agriculture the number of applications to purchase made by tenants of small holdings to the Salop County Council since 1920, the number of applications granted and refused, and the reasons given for refusal?
I am informed by the county council that seven such applications have been made. Four have been granted and three refused, in one case because the price offered could not be accepted, and in two cases because the holding in question is in the centre of the council's estate. In one of these latter cases I am informed that the cultivation of the holding is not satisfactory. This case is before me at the present time and the council's refusal will not be final until my consent is given.
Is the right hon. Gentleman satisfied that, generally speaking, reasonable opportunities are being given to these smallholders to purchase their holdings, because my information is that there is considerable dissatisfaction among these men?
Yes. I think the record shows that reasonable opportunities are given, and more than half the applications have been granted.
National Mark (Eggs)
asked the Minister of Agriculture the number of eggs packed under the national mark in February last and in the corresponding month of 1930; and whether he is satisfied that poultry keepers are giving adequate support to this scheme?
The number of eggs graded and packed under the national mark was 17½ millions in February of this year as compared with 11 millions in February, 1930. This represents an increase of 59 per cent., showing that poultry keepers are realising the value of the scheme. There are still certain areas where packing stations are few, and I hope that as the benefits of the scheme become better known, and egg producers in those areas appreciate the strength of the public and trade preference for national mark eggs, they will establish their own packing stations for the grading and selling of their eggs under the mark.
Allotment Posters
asked the First Commissioner of Works whether he will arrange for the posters issued in connection with the allotment scheme to be displayed in the Tea Room for the information of Members?
My right hon. Friend the First Commissioner of Works will be happy to consult the proper authorities on the matter with a view to complying with my hon. Friend's suggestion.
New Potatoes (Imports)
asked the President of the Board of Trade the quantity of new potatoes imported into this country in 1930 during the months of March, April, May, and June, respectively?
Separate statistics relating to the imports of new potatoes are not available, but the total weight of potatoes imported into the United Kingdom and registered during the months of March, April, May and June of last year was 79,844 cwts., 163,480 cwts., 974,318 cwts., and 2,438,393 cwts., respectively.
Is the hon. Gentleman aware that during that time English-grown potatoes were rotting in the potato clamps?
Arable Farming
asked the Minister of Agriculture whether he can now make a statement as to the steps that His Majesty's Government propose to take to encourage arable farming; and, if so, what they intend to do to prevent the competition of dumped and bounty-fed cereals from abroad?
I am not at present in a position to make a statement.
Post Office
Telephone Instruments
asked the Postmaster General the number of new hand combination telephone instruments that have been supplied as an alternative to the old candlestick pattern; and whether his report shows that these have been satisfactory?
Approximately 55,000 new hand micro-telephones have been installed. The answer to the last part of the question is in the affirmative.
Can my hon. Friend say whether the applications have been as numerous as they anticipated?
I might say that the applications have exceeded expectations.
Indian Air Mail
asked the Postmaster-General whether his attention has been called to the difficulty experienced by the public in ascertaining when the air mail leaves Bombay for this country; and whether, in view of the importance to the business community of definite information on this subject, he will give instructions for full details of this service, in both directions, to be published?
I have received no complaints of the difficulty referred to by the hon. Member. All available information regarding the time of despatch of air mails to this country from places abroad is given on application to the General Post Office, London. I regret that it would not be practicable to supply such information to all post offices, but particulars of air mail despatches from India will be included in the Post Office Daily List in addition to the information at present published with regard to the anticipated time of arrival.
Will the services from India be published in the daily lists as well—from India back again to this country? That is the important point.
That is receiving consideration at the moment.
Railway Accident, Leighton Buzzard (Delayed Telegram)
asked the Postmaster-General if he is aware that a telegram accepted at Leighton Buzzard at 1.22 p.m. on the day of the railway disaster, informing the parents of a passenger of his safety, was not delivered in Paisley until the following morning at 8.20 a.m., four hours after the sender arrived home; and if he will make arrangements in future for the speedy delivery of such emergency messages?
Arrangements are already in operation for the special delivery of telegrams of exceptional urgency on Sundays and outside the normal hours of telegraph business. I very much regret to find that the urgency of the telegram referred to was not realised when the message reached Glasgow on Sunday afternoon, and that as the Paisley post office was closed, and the addressee was not on the telephone, delivery was not made till the following morning. I am having serious notice taken of the matter.
Irish Sweepstake (Correspondence)
asked the Postmaster-General how many letters were opened with a view to intercepting subscriptions to the recent Irish sweepstake on the Grand National; how much money was stopped; and how much extra staff was employed by the Post Office for this purpose?
in the opinion of my right hon. Friend, be in the public interest to give the information requested in the first part of the question. I understand that the answer to the last part is that no extra staff was employed.
Am I to understand that only very few letters were opened and that the whole thing has been an absolute farce?
No, my right hon. Friend said it was effective.
Is the hon. Gentleman aware that his answer to the hon. Member for Newcastle North (Sir N. Grattan-Doyle) conveyed no information whatever?
Is the Home Secretary making a deliberate and organised attempt to stop all subscriptions, or is he only trying to catch the casual subscriber?
He is attempting to carry out the law.
Parcels, Mitcham (Under-Payment)
asked the Postmaster-General if he is aware that two parcels of perishable goods, addressed to a sailor on His Majesty's Ship "Queen Elizabeth," despatched by Mrs. C. Rogers by registered parcel post from Mitcham Post Office on 18th December last, to reach the addressee in time for Christmas, were detained at the General Post Office, without notice being given to the sender, on the ground that the postage charged by the Mitcham postal clerk was insufficient; that, after much delay, the parcels were subsequently forwarded to the addressee, and that the sender has now received a demand for additional postage; and whether, in order to prevent members of the public king penalised for the mistakes of the General Post Office, he will remit the surcharged postage and compensate the sender for the goods spoiled through their detention?
The parcels in question were not delayed, but were despatched by the first mail after the date of posting; and the addressee acknowledged their receipt on the 8th of January. Insufficient postage was prepaid; and the sender has properly been asked to make good the deficiency.
Concordia Electric Wire Company, Limited
asked the Postmaster-General if he will give a list of the contracts undertaken for the Post Office during the last year by the Concordia Electric Wire Company, Limited, Derby?
Ten contracts, to the total value of £1,200, were placed last year by the Department with the Concordia Electric Wire Company, Limited. I am arranging for a list to be circulated in the OFFICIAL REPORT.
Date. Quantity. Description. 10.1.30 100 miles Wire Switchboard 1 pr./9¼. 10.1.30 10 miles Wire Switchboard 3 wire/9¼. 28.3.30 4 cwts. Wire Copper Enamelled 43 S.W.G. 8.5.30 5 cwts. Wire Copper Enamelled 42 S.W.G. 24.5.30 1 cwt. Wire Resistance E. & S.S.C. 31.5.30 5 cwts. Wire Copper Enamelled 39 S.W.G. 15.7.30 84 lbs. Wire Resistance E.S.S. 37 S.W.G. 15.7.30 25 cwts. Wire Copper Enamelled 5·6 mils. 23.9.30 23 cwts. Wire Copper Enamelled 41 S.W.G. 6.11.30 18 lbs. Wire Resistance E. & S.S.C 45 S.W.G. 20.12.30 3 cwts. Wire Copper Enamelled 30 S.W.G. 20.12.30 6 cwts. Wire Copper Enamelled 39 S.W.G. 20.12.30 7 cwts. Wire Copper Enamelled 40 S.W.G.
Air Mail Stamps
asked the Postmaster-General whether he will consider the introduction of an air stamp into this country, both as an additional source of revenue and a benefit to philatelists all over the world; and whether he will say how many countries have their own air stamps?
As regards the first part of the question, I would refer the hon. and gallant Member to the reply on the same subject given to the hon. Member for Melton (Mr. Everard) on the 15th December last. As regards the second part of the question, about 50 countries have issued air stamps.
Telephone Installation, Sidcup
asked the Postmaster-General whether he is aware that the name of Mr. S. T. Hunn, of 50, Wood-
Has the hon. Member satisfied himself that this particular company is complying with the Fair Wages Clause on the work that it is doing for the Post Office?
We have no knowledge to the contrary, but, if the hon. Member has any other information, I shall be pleased to receive it.
Will inquiries be made as to the condition of affairs operating on this work in Derby?
I shall be pleased to make inquiries.
Following is the list:
land Avenue, Sidcup, appears in the new Telephone Directory, but that Mr. Hunn is unable to obtain telephone facilities; will he state the reasons; and whether, as the name and number have been included in the directory, he will now give instructions for the necessary steps to be taken to supply the desired connection?
It has not been possible to provide Mr. Hunn with service owing to the refusal of the local council to consent to the erection of the poles necessary to carry the wires for the circuit. I am pressing the council further in the matter. It was not anticipated that this difficulty would arise when arrangements were made to insert Mr. Hunn's name in the directory.
Cannot the lines be put underground, and is it not a fact that the putting of the name in the directory is an implied contract between the Postmaster-General and Mr. Hunn?
I think the hon. Member will appreciate that we have done all that it is possible for us to do. We did not anticipate difficulties with the local authorities. The Department have gone into the expense and considered the question of putting the wires underground.
If Mr. Hunn's name has been put in the Telephone Directory, why does the Postmaster-General still refuse to connect him to the telephone service?
Questions
Cinematograph Film ("One Family")
asked the Secretary of State for Dominion Affairs upon what date the film entitled "One Family" was first exhibited to the public; whether bookings for this film are now satisfactory; and what share of the receipts has as yet accrued to the Empire Marketing Board under the terms of the contract?
This film was first shown to the public on 7th July last. Its bookings have not as yet been encouraging. No receipts have so far accrued to the Empire Marketing Fund under the terms of the contract.
Do I understand that probably the £15,000 spent on that film will be a dead loss, and could the right hon. Gentleman give any reason to the House why the financial results of the film should be so unsatisfactory?
To be quite frank, I would not advertise the film myself.
Can my right hon. Friend say whether arrangements have been made to book this film through one of the big producing companies?
I do not know. I am sure the hon. Member would know more about that than I do.
Housing
Statistics
asked the Minister of Health the total number of dwellings in England and Wales at 1st January in each of the following years, 1911, 1921 and 1931?
As the reply involves a tabular statement, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.
Following is the reply:
England and Wales. (Census Figures). — 1911. April 2nd. 1921. June 19th. Structurally separate dwellings— Occupied 7,319,420 7,811,030 Vacant 434,048 218,833 Total 7,753,468 8,029,863
The only information available in reply to the question is that contained in the Census Reports for 1911 and 1921.
NOTE.—In 1911 structurally divided houses were not separately identified, and the total dwellings shown for that year is understated to the extent by which such houses were returned as undivided structures instead of as flats or tenements.
asked the Minister of Health the approximate total capital cost of all State-assisted houses erected in England and Wales between the years 1919–30, inclusive; and the total amount of housing subsidies paid from the Exchequer to local authorities in England and Wales during the same period?
Information as to the capital cost of all State-assisted houses is not available, but it is estimated roughly at about £600 millions between 1919 and 1930. The total amount of Exchequer subsidies paid during the same period in England and Wales is £93,530,000 of which £82,045,000 has been paid to local authorities.
Rents
asked the Minister of Health what he estimates to be the full economic net rent on an A 3 house costing £400?
The full rent required to be charged for a municipal house costing £400, without Exchequer or rate subsidy, is approximately 10s. 6d. a week exclusive of rates.
Questions
Royal Navy (Submarine Attack)
asked the First Lord of the Admiralty the date on which the practicability of double-bottomed ships as a protection against submarine attack was first considered by the Admiralty; the date on which approval was given; the date on which construction was commenced; and the date on which the first ship so protected was put into commission?
The double-bottoms of larger British warships were first adopted to provide protection against torpedo attack in 1871. From 1886 until the Great War, experiments were carried out by the Admiralty at Various times with a view to improving the internal arrangements and afterwards providing external bulges in order to meet the increasing need for protection against under-water attack. Approval was given to fit the first warships with external bulges in October, 1914. The work was put in hand in December, 1914, and the ships were tried at sea in April, 1915.
Is it not a fact that the bulge is quite different from the principle of the double-bottom?
I am afraid that the hon. and gallant Gentleman did not listen to the answer. I answered the question about the double-bottom, which was introduced in 1871.
Did not the hon. Gentleman say that the bulge was introduced in 1871?
I said the double-bottom in 1871, and the bulge in 1914.
Income Tax (Sweepstake Winnings)
asked the Chancellor of the Exchequer whether it is proposed to assess for Income Tax winnings in the Irish Hospital Sweepstake received by persons resident in this country?
No, Sir. Winnings of this nature are as such outside the scope of the Income Tax Acts.
Is that correct? Are not the sweepstake winnings of bookmakers returnable for Income Tax?
I said nothing about bookmakers. It was decided in the High Court in the case of Graham versus Green in 1925.
Patent Medicines (Committee's Report)
asked the Financial Secretary to the Treasury whether he will order the reprinting of the report of the Select Committee on Patent Medicines, 1914?
The cheap edition of the report of the Select Committee on Patent Medicines, 1914, has been out of print for some years, and there is no evidence before me that there is a substantial demand to justify a reprint. The full edition, containing the proceedings and minutes of evidence, is still available.
Royal Mail Steam Packet Company
asked the Financial Secretary to the Treasury whether he will request that the documents to be submitted to the Government from time to time by the voting trustees of the Royal Mail Steam Packet Company shall include an explanation of the failure of the audit system of the parent company to warn the proprietors of the parent company in the published accounts of the effect of the method of the profit-and-loss allocations of the subsidiary concerns which work through the Royal Mail Steam Packet Company?
I have explained the task on which the voting trustees are engaged in answer to my hon. Friend the Member for South Shields (Mr. Ede) on the 23rd March. At the appropriate time, the particular question to which the hon. Member refers will be considered. I should perhaps add, in case the hon. Member has in mind the Sections of the Companies Act to which he was referred on 3rd March, in reply to a question suggesting general legislation, that the Royal Mail Steam Packet Company is not registered under that Act.
Electricity Act
asked the Minister of Transport whether he will introduce amending legislation to the 1926 Electricity Act for the protection of municipalities?
The hon. Member does not say what form of protection of municipalities he has in mind. Perhaps he would be good enough to furnish me with further particulars.
Are not the Government aware that municipalities have been denied by the present Act the right to reduce the price of electricity; and are they not aware also that in every big industrial centre, where the municipality is producing current, they are not allowed to sell it at the price they could well do?
If the hon. Member requires an answer to that question, he should put it on the Paper.
Is it not part of the business of a Government to know the results of Acts that have been passed?
Food Standards (Committee)
, asked the Minister of Health if he is prepared to promote, or to grant facilities for the promotion of, legislation to provide for the fixing of a standard for ice cream, compelling the use of dairy products in its composition when manufactured for sale?
My right hon. Friend is about to set up a Committee to consider the law as to the composition and description of articles of food, including the question whether it is desirable to prescribe further standards or definitions. Pending the report of this Committee, my right hon. Friend thinks that the question of legislation for the standardisation of ice cream should be deferred.
New South Wales (Loan Interest)
( by Private Notice ) asked the Secretary of State for Dominion Affairs whether he has any further statement to make regarding the payment of interest on certain New South Wales loans due in. London on the 1st April?
I am sure that the House and the country will be relieved and gratified to learn that I have this morning received from the High Commissioner for the Commonwealth of Australia in London the following message sent to him by Mr. Scullin:
"Commonwealth Government has taken Counsel's opinion regarding its position under Financial Agreement in relation to New South Wales interest falling due in London on 1st April which the State has declared it will not pay. Advice received shows Commonwealth is under legal obligation to States which are parties to Financial Agreement to pay the interest and also that Commonwealth has legal right to pay. Commonwealth accordingly will make provision to pay the interest falling due in London which New South Wales has declined to pay."
Arising out of that reply, could not the right hon. Gentleman give an assurance that if Australia shows determination, as I am sure it will, to face up to the real facts of this situation, it will be the policy of His Majesty's Government to give that great Dominion all possible help in this country?
A more undesirable question I cannot conceive. Do remember the position of this country and of the Government. I expressed the opinion on Friday that I, speaking for the Government, could not conceive that the decision of the New South Wales Government to repudiate their obligation would be allowed to continue. No greater mistake would be made than to associate the decision of the Australian Government which I have announced, and of which I have expressed appreciation, with, any outside question, and a profound mistake would be made by my attempting to answer it. I am sorry that such a question should be asked, because of the possible repercussions in other places.
Budget (Date)
May I ask the Prime Minister if he can tell the House now on what day the Chancellor of the Exchequer will open his Budget?
The House will be very glad to know that the Chancellor of the Exchequer proposes to open his Budget in person on Monday, 27th April.
Vaccination Bill,
"to repeal the Law relating to compulsory vaccination," presented by Mr. Groves; supported by Mr. John Jones, Mr. Harbord, Mr. Rennie Smith, Mr. Freeman, Mr. Broad, Mr. Ernest Winterton, Mr. Carter, Mr. Foot, Mr. Scrymgeour, and Mr. Hardie; to be read a Second time upon Thursday, 16th April, and to be printed. [Bill 118.]
Shops (Sunday Trading Restriction) Bill,
"to restrict the opening of shops and trading on Sunday; and for other purposes connected therewith," presented
by Mr. Wise; supported by Mr. Arthur Taylor, Mr. Hoffman, Mr. Foot, Lieut.-Colonel Fremantle, and Lieut.-Commander Kenworthy; to be read a Second time upon Monday, 20th April, and to be printed. [Bill 119.]
Orders of the Day
Consumers' Council Bill
Order for Second Reading read.
I beg to move, "That the Bill be now read a Second time."
4.0 p.m.
The House will remember that on 8th May, 1930, a Bill in similar terms was introduced and, after a very full Debate, it was read a Second time by 266 votes to 202. From that point the Bill proceeded to a Standing Committee upstairs, when a very large number of Amendments were moved to the first part of the Measure, which was designed to secure closer information, and to the second part, which was designed to secure compulsory regulation of prices under Orders of the Board of Trade. Partly because of the lateness of the Session and the congestion of other Bills, it was necessary at that time to abandon the Bill. The Prime Minister then made a statement that the Bill would be introduced again at the earliest possible date, and, accordingly, I am moving again the Second Reading of the Bill this afternoon. In these circumstances, and having regard to the fact that last year a very complete statement was made in defence of this Measure, a somewhat shorter explanation may be acceptable on this occasion. Last year I directed attention to the general position of commodity prices. I dealt, in the second place, with the actual machinery of the Bill, and, in the third place, tried to answer the question whether any Orders of the Board of Trade would be effective for their purpose.
This afternoon, I shall cover much more briefly the same ground, but give rather later statistics in order to illustrate the importance of a Measure of this kind in existing conditions. I do not think that any Members in any part of the House will dispute its importance. When we dealt last year with the expenditure on foodstuffs, it was calculated that probably about £1,800,000,000 per annum of the aggregate income of this country went in consumption of food, and as this Bill also provides for clothing and materials connected with clothing, also for fuel, and, it may be, certain other commodities, it may be assumed that much more than one-half of the total income of the British people is directly or indirectly affected. That income has been usually put in recent years at a round figure of £4,000,000,000, but it has been calculated that, mainly because of the profound industrial depression of the past year, the income may have fallen by as much as £400,000,000 or to a figure to-day of approximately £3,600,000,000.
During that time, the House is aware, there has been a marked fall in wholesale commodity prices. In many cases those prices to-day are actually below pre-War level. In other cases they are only a point or two above pre-War level, and while it has been the hope of Members in all parts of the House that bottom has been touched in the decline of commodity prices, mainly as providing a possible basis for a revival in trade, I think that no one can speak with conviction on that subject in existing conditions. It is true that some of our greatest authorities consider that these prices may go even lower, but the importance of the problem at the present time turns upon the extent to which the middle and the retail prices have followed the fall in the wholesale level. It will hardly be disputed that while retail prices have lately been moving in a downward direction, there has always been, first of all, a lag in the way in which retail prices have followed the decline in the wholesale price level. In the second place, there has been widespread and justifiable criticism as regards what is called the margin between wholesale prices and retail prices applicable to the whole of the consumers. Of course, we all recognise that there must be a time lag before retail prices begin to respond to a fall in wholesale prices. Many commodities have been bought at the higher prices, and the stocks take time to work off. In due course, retail prices should respond, but I think it can be shown with very considerable force that the time lag in many cases is unnecessarily long, and that there are middlemen, retailers and other interests which interrupt the transfer of the benefit from the lower wholesale price level to the great mass of people as consumers.
Then there is abundance of information also to show that the margin between the wholesale and retail price level is unnecessarily great, even when full allowance has been made for the higher transport and intermediate charges which are true of post-War conditions. We have all recognised in an analysis of economic problems in this country that because of legislation and certain other reasons, what is sometimes called a rigid element has been introduced into our economic system. Certain charges for transport and other factors, of course, tend to interrupt a full transfer of a fall in wholesale prices before or when the goods reach the consumer. When allowance has been made for these considerations, the burden of evidence is still to the effect that millions of people in this country have not got the advantage of the lower range of prices to which, on all the facts, they were entitled.
When we pass to a review of some of the phases of last year's Debate, we find that this hits the community in a variety of important ways. The House will remember that in presenting the Bill last year I alluded to certain reports of the Linlithgow Committee which dealt in particular with agricultural commodities. Attention was there drawn to the disparity between the prices which were given to the producers and the high prices which were charged when these goods reached the consumers, and sometimes the high prices when there was an intermediary element. Those reports were of very great value, and I have always regretted that the Government in office at that time and later Governments did not take much more drastic action upon them, because if that had been done much fairer conditions would have been afforded to considerable numbers of small cultivators, many of them ex-service men, and at least a part of our agricultural difficulty in this country would have been, if not removed, at all events modified in its incidence on these men and women.
Attention was also directed more particularly to the gap which has existed, say, between the pithead price of coal and the charges to the retailer and consumer. Under one of the provisions of the Coal Mines Act there are arrangements for review, by representative committees in districts, of the pithead prices of coal if they are regarded as unfair, or if the scheme is regarded as unfair in its application to a particular district, but, of course, that analysis stops at the pithead, because the whole of that Act was confined to the production and the pithead distribution of coal, and it was made perfectly plain that the position of the wholesale and the retail trade would fall to be dealt with under legislation of this kind. Accordingly, this Bill was devised, so as to eliminate overlapping, not to cover the review of prices at the pithead, but that later review in wholesale and retail distribution which is also required. The Miners' Federation and other representative bodies have always thought that this was one of the most unfair elements in the problem. Pithead prices of coal very often have been less than £1 or up to £1, and retail charges 45s., 47s., 50s. and 55s. a ton. We recognise, again, the importance of the intermediate transport and other charges. In that case also, there has been evidence to the effect that something could be done to bridge that gulf and ease the position of consumers of that important form of fuel.
Then, in 1929, attention was directed to the position of oil products in a report which was presented to this House and which analysed the position of those great and powerful combines which control the production and distribution of oil. That, as the House knows, is very largely regulated in this country by Gulf prices, and we know, of course, that the price has fallen within recent times; but there are certain features in that problem, notably that of the so-called loyalty bonus, which gives certain terms to middlemen who undertake to take the whole of their supplies from the combine. There are many problems of that kind which are appropriate material for investigation under a Bill of this kind, and I could continue to give a great variety of illustrations in existing conditions in this country, partly designed to show the importance of the analysis of this problem as a general economic problem, and partly designed to press the importance also of securing the lowest level of prices for the consumer.
There were two concrete cases which led up to the legislation that we attempted last year. In the first place, the House will recall the controversy which surrounded bread prices in London. We attempted, but the attempt was not altogether successful, to get the requisite information in connection with the decision of large and influential bodies to fix the price of the 4-lb. loaf at a level which was regarded as at least ¼d. higher than need be charged, and the extra burden which was thereby placed upon millions of consumers—because that is what it amounted to—in the London area. The second illustration, which is even more important from some points of view, is that of our controversy with the milk distributors in London, including the large combine, in the summer of 1929. It is unnecessary this afternoon to recall that controversy in detail, because I have already given the House full information regarding it, but I revive it because it will form a part of the material upon which, I hope with restraint, but nevertheless with truth as to facts, to pass upon the second portion of the reasoned Amendment which my right hon. Friend the Member for Hendon (Sir P. Cunliffe-Lister) has put upon the Paper.
What was the position in regard to the milk controversy in London? That problem had been very faithfully analysed by the Food Council, and the House did not dispute that the results had been reached upon the very highest advice of chartered accountants and others whose qualifications for such an investigation no one would criticise for a moment; and the results showed that it would be perfectly fair to the milk distributors to charge the winter price of 7d. a quart for seven months of the milk year, which ends, I think, on the 30th September, and which ended on that date in 1929. A report was presented in March, 1929, which indicated plainly that, for the milk year ending on that date, the sum of 7d. was appropriate for the seven months and 6d. for the remaining five months, usually called the summer period. Shortly after we took office, in June, 1929, I made inquiry as to the position of this report and the action that the milk distributors were likely to take. It was very difficult to obtain precise information, and it was not until the end of July of that year that we were suddenly informed, following another inquiry, that they intended to charge the winter price from the 1st August, 1929, instead of from the 1st September.
I met the leading milk distributors at that time, and we had a long and, on the whole, friendly discussion at the Board of Trade; but I do not think they seriously contended that there had been any change in the conditions applicable to their industry as between March, 1929, when the Food Council unanimously reported that the prices charged should be at the rates which I have already described, and this date at the end of July of that year, when they suddenly announced that they proposed to charge the winter price one month earlier than the Food Council considered was either necessary or justifiable. I did everything in my power to argue them out of that decision, but they were immovable, and, accordingly, they charged that winter price from the 1st August of that year. They were well aware that the Food Council was only a voluntary body, that it had no statutory basis, that it had no power either of compelling the giving of information or of enforcing the view which was embodied in the report to which I have referred; and, accordingly, millions of consumers of milk in the London area were subjected for that month to that extra charge. I do not think that any hon. Member will say that these are small and trifling additions—¼d. in the case of the 4-lb. loaf, or 1d. per quart in the case of milk. They are of vital importance to millions of comparatively poor people, and they are also of very great importance as regards the aggregate sums which they take unnecessarily out of the pockets of consumers, thereby, of course, affecting the purchasing power of a great section of the people of this country.
Probably there has never been a time within recent years when it was more important that, under legislation of this kind, we should protect millions of people in regard to the prices of the ordinary commodities on which they depend. No doubt a considerable part of people's remuneration in this country is based on a cost of living scale, but we are well aware of the inequalities of that cost of living scale and of the many injustices which are experienced in the way in which these scales are applied or in which they work out. Quite apart, however, from that, wage reductions have recently been enforced upon great sections of workers, and it is their constant complaint that, although retail prices have now begun to fall to some extent, they have not fallen to the extent to which their wages have in many cases been reduced, and there are certain areas in which, for a variety of reasons, these retail prices are, so to speak, artificially held up or sustained. In that state of affairs there is a powerful case for a Measure of this description.
I pass now, with that introduction, to an analysis of the features of the Bill, and a reply to certain objections which I have no doubt will be revived in force to-day, as they were presented in May of last year by hon. and right hon. Gentlemen on the Opposition benches. The Bill proposes to establish a Consumers' Council of seven persons, two of whom will be women. That is a departure from the steps which were taken by our predecessors in office. The House will remember that the Royal Commission on Food Prices recommended that a statutory body should be set up to deal with food prices, and they also said that it should have, at least in reserve, powers of compelling the giving of information. These were the two leading points in their recommendations. Our predecessors did not, however, adopt that plan, but, on the contrary, set up, merely on administrative lines, a purely voluntary Food Council, which had no statutory basis and no power of obtaining information by compulsory methods; that is to say, the information might be refused, and, of course, in some cases it has been refused, and in many others terribly delayed. That Food Council had no power whatever to make its wishes prevail.
We have remedied these weaknesses in this Bill. The Council is to be on a statutory basis; it is to be authoritative in character; and it is to be given power to obtain the necessary information by compulsion if it is not forthcoming on voluntary lines. The fullest provision is made for the secrecy of that information. It might be manifestly unfair to hold up to the public any individual concern. What is important from the point of view of the public is the result of the inquiry. I have always said that, so long as the existing system lasts, you must not damage one trader as against another, but that all must be treated on terms of fair play and equity; but I suggest, without throwing out reflections in any directions, and still less threats, that it is the fact that in some cases the information has been definitely refused, or there has been such delay, shading sometimes into prevarication, as to make the kindest spirit in this House highly suspicious as to what lay behind the refusal. Our predecessors in office do not seriously challenge this part of the Bill. My right hon. Friend opposite has prepared a mixed Amendment, as suitable fare on the eve of the Easter Recess, and I gather from the first part of it that, as was rather indicated last year, he and his Friends would be prepared to entrust a representative body of an authoritative character with the requisite powers for obtaining these facts. That is a step in advance, and I hope that at least we shall be obtain to obtain agreement on that part of the plan.
Passing to the scope of the inquiry that this Consumers' Council is to undertake, the House will observe that it is directed to the production, distribution, and sale of commodities in common use. That, of course, includes the whole range of foodstuffs and clothing, on which there has been considerable controversy within recent years as to wholesale and retail prices, and not least in Lancashire, which has been struggling very severely with depression in the cotton industry. It also includes fuel. These three classes of commodities in common use are covered, and the Council may analyse their production, distribution and sale; in other words, it may find out at what stage in the process from the original producer down to the consumer an abuse in price exists. In response to an appeal by my hon. Friends on the Liberal benches, I have provided also in this Measure for a review of those services which are intermediate in character, but which may often have a profound influence on the price of certain commodities in common use—commissions and the rest, to which both producers and retailers might be able to point as the real cause of a good deal of the trouble in existing conditions.
This Clause further provides that additions may be made to these lists of commodities in common use, by an Order of the Board of Trade to be approved by this House and by the other House, so that Parliament will have full information as to any extension of this plan. I wish to emphasise most strongly that the whole object is to keep this House fully informed and, if we possibly can, to secure the constant interest of the House in this problem of commodity prices. It provides, therefore, for a constant and systematic review of a question which, by common consent, is of vital importance to the whole of the population in their capacity as the consumers of those common commodities.
Then we pass to what is undoubtedly a controversial part of the Bill. The right hon. Gentleman and his colleagues, in the second part of their Amendment, oppose any plan which, of course, they describe—I think this is common form—as of a bureaucratic character, to control prices, and they suggest that any device of that kind will probably be unfair to producers and consumers alike. I hope I should be the last to mislead the House in this connection. I am not standing here with the suggestion that the Bill will enable us to control prices. I do not think there is any method by which prices can be effectively controlled when we do not control production and supply. I would give anything to have the necessary majority for such plans as would enable me to take that step in the interest of the community, more particularly when we remember that a very considerable part of the supplies of the very commodities that are now under discussion have passed under a combine or trust or a quasi-trust organisation. Some of those powerful bodies, which have lately been in controversy as to the extent to which they could unite, have thrown fresh light on the manner in which scores of millions of pounds worth of goods are in practice controlled even now before ever they reach the consumer. But we have not a majority for a Bill of that kind and, until the electorate advances, I must do my best with alternative measures. But, while being perfectly candid in matters of that kind, I hope to be able to present a complete case in reply to the second part of the Amendment.
Last year we made it plain that it is not, and could not be, the object of the Bill to pursue a bewildering variety of inquiries running into many thousands of individual commodities. That is quite impossible. This Bill will best serve the interests of the public if it directs its attention to those great central commodities the price level of which can be readily ascertained in exisiting conditions. Hon. Members opposite during the Committee stage a year ago suggested that our intention was only to deal with monopoly, and they immediately embarked upon profound arguments that on that basis the whole structure of the Bill should be radically altered. That was not our proposal. No doubt, this Measure will provide for an analysis of monopoly and quasi-monopoly conditions, but there is a good deal of distribution which exist independently which, nevertheless, is influenced by monopoly it may be to some extent indirectly. There, also, we did our best to meet certain criticisms of Members on the Liberal benches. When we came to the orders to be promoted by the Board of Trade, they contended strongly that it should be restricted to those conditions in which the Council had found that an unfair price was being charged either for a commodity or for some intermediate service, and that an order should only be promoted where monopoly conditions prevailed or where there were not conditions of free competition. I never had any doubt, personally, about that part of the Measure, because it had always been shown, in the light of the experience of the Food Council and of conditions in the supply and distribution of ordinary commodities, that that must be the line that a Measure of this kind should take; in other words, to direct attention to those great bulk articles in practically all of which, in existing conditions, there is some form of control or some form of monopoly. Of course, the Bill as now drawn is not limited to conditions of strict monopoly, and, if necessary, it will be possible to investigate any state of affairs in which there are powerfully competing concerns of a monopoly character, because those concerned may nevertheless, although in competition, hold up the price against the community, and that state of affairs differs widely from that perfectly free competition of a great body of small people all scrambling for trade in which the price level would be kept lower and the community would have no cause for complaint.
That is the background of this part of the Bill and we then approach, in that background, the central feature of the Board of Trade order. What would happen in practice would be this. I can best take as a concrete illustration, that of the state of affairs in the London milk trade in the summer of 1929. We have a report by the reconstituted Consumers' Council on the lines of the report presented to the Food Council in that case. We know that the price should be 6d. for August, 1929. Chartered accountants have shown that that affords a perfectly fair margin to distributors, and the price is fair to the community on the other side. At that point the right hon. Gentleman and hon. Members opposite stop. If the milk distributors say, as they said in August, 1929, "We do not propose to apply your price," then members opposite have no remedy to offer save the remedy of publicity, which they say will be sufficient for this purpose. That state of affairs in August, 1929, had the widest possible publicity and no remedy was found, and no remedy could be found under the Food Council as it was constituted. There you had an ascertained, definite state of affairs applicable to a commodity that is of vital importance to the community for a particular month, with the figure of 6d. worked out in detail, and you had no method of making the views of the Food Council prevail. That is precisely the position in which the right hon. Gentleman finds himself when he comes to propose this Amendment. How could I possibly present to the House a Bill that would lead the community right up to that point and then find that the remedy broke in its hands when an effort was made to apply it? If we were seeking to apply this to a number of isolated transactions, it might be different, but this Bill and these orders will work when they are running on those lines, when you have an ascertained cost and where you have all the backing that is necessary in information for its application.
That is the plan of this Bill. There are two classes of orders. There is first of all the emergency order, which may last for a period of two months in urgent circumstances, and an order which may apply for a longer period, the period being recommended by the Consumers Council with that information on the lines of the case that I have taken as an illustration. Those emergency orders—again meeting a point of criticism advanced from the Liberal benches—will be dependent, like the other order, on the subsequent Parliamentary review and, if Parliament decided against them, they would cease to be operative. But I have no fear of that. When the facts are ascertained and any order that it may be necessary to introduce is introduced, the community will make it plain that it wishes to be protected and it will be our business to enforce that demand. But, while I say that, let me emphasise this consideration, that in my judgment the authoritative character of this body and the compulsory character of its information will be sufficient, together with the existence of those resources or sanctions in the background. But the sanctions must be there. In nine cases of ten I do not believe it will ever be necessary to use an order of this sort. The mere existence of the possibility of the order will do all that is necessary to secure the recognition of the price level which the Consumers' Council has recommended.
I need not, I think, detain the House with further arguments to-day. That, in broad outline, is the case for the Bill. During the Committee stage we shall be able to give any additional information which hon. Members require. But I want to press one point to which, I think, insufficient attention was devoted last year. The Bill is not merely designed to protect consumers on the lines I have suggested, important as that may be. It is designed also to supply a gap in our statistical information which leads to very great difficulty for considerable sections of people. We have a good deal of information about wholesale prices and a very fair amount of information about retail prices, but we have no continuous study of the burden of the charges at the various stages of production, distribution and sale and, if this Measure is efficiently and properly worked, with adequate statistical and other material, it will be a valuable contribution to economic information and, in my judgment, it will protect both producers and consumers. I have always taken the view, at all events within recent times, that serious injustice is being done to large numbers of producers in agriculture. I do not believe they are getting fair prices for the commodities, they produce, and they are working very often in terms of depression which is not less profound than the depression under which millions of their fellows are working in the industrial community. The Bill is designed to throw light on that state of affairs, to get a fair price for the producers, to enable them to pay fair remuneration to an admittedly depressed class of workers and also to get rid, as far as we can, of those unnecessary, redundant, intermediate elements which fall with unnecessary expense on the community. Those are the lines on which, with great confidence, I recommend this Measure for the approval of the House.
I beg to move, to leave out from the word "That," to the end of the Question, and to add instead thereof the words: act, in order to make it more acceptable to the pious patrons below the Gangway. I do not know whether it has enabled him to give the right hon. Gentleman the Member for Darwen (Sir H. Samuel) a speaking part in the cast or whether the night hon. Gentleman has merely been engaged with his attendant gentlemen to walk on instead of walking out. Whichever part he may play, the Bill really is, in principle and essence, the same old Bill, and if ever it gets working, it will, along with the other Bill with an equally popular title, go down to-posterity as the Dear Food Bill.
The Bill is intended to, and if it ever operates it will, cause the maximum interference with every trader and every producer. The President of the Board of Trade has told us in opening, and, indeed, his principal commendation of this Measure is, that he is going to cover by his network of inquiries more than half the trade and production of this country. It is, indeed, a trades persecution Bill. What is to me quite extraordinary is the way in which the Government are prepared to violate every canon of Free Trade except the one which would be of some use and some value to the trade and industry of this country. The right hon. Gentleman is determined, as far as British trade and industry, and indeed agriculture, I think I may add, are concerned, to prove the truth of the aphorism that "Man born free, is everywhere in chains." We used to hear that a good deal in speeches of hon. Gentlemen in earlier days, and now we have it in reality in their methods. For all practical purposes, the Bill is identical with the one which we had last year, except that in Clause 5, which gives to the Board of Trade the power to fix prices, there are some limiting words in Subsection (1) that the Council has to report:
indicated dissent.
Then the President of the Board of Trade is pre- senting us with two very inconsistent types of Bills. All the economic lectures which he has delivered to the House—and I think I have listened with interest to all of them—have been designed to show how hopelessly uneconomic and unsound is the free play of competition. When we get to the Coal Mines Bill he proceeded courageously with a vengeance to practice what he had been preaching. There is no free-play of competition there. No one is allowed to produce in competition. We had his assistant up the other day to show how wicked were some coalowners in Yorkshire who had dared to produce in competition with some coalowners in Lancashire. There is no free play of competition when it comes to price. The price has to be fixed by the coalowners' ring, and anybody who sells below the price fixed by the coalowners' ring is guilty of a criminal offence. In order to make quite sure that there shall be no free play of competition in any part of this industry, a reorganisation committee has been appointed, at an adequate remuneration, in order to see that the free play of competition is still further suppressed by compulsory amalgamations of all the units.
The right hon. Gentleman really must make up his mind which horse he is going to ride. You cannot fine people in one industry for engaging in the free-play of competition, and send people to gaol in all other industries because they do not. Indeed, if I remember aright from what the President of the Board of Trade said the last time—and this Bill contemplates the same stipulations—and from his speech to-day, he is not proposing to change it: in the coal trade a man is to be susceptible of both these condemnations: There it is. We have had a good many inconsistencies coming from the Front Bench, but I really think that this one, to put it vulgarly, takes the cake. I would incidentally ask him whether coal at the pit mouth is excluded because, under Clause 2, it is one of those commodities which, in the opinion of the President of the Board of Trade, is satisfactorily covered by other Acts?
The whole object is to prevent overlapping between two Acts of Parliament. Coal is covered by the Coal Mines Act, at the pithead the rest is covered by this Bill.
That is exactly what I said. Coal sold at the pithead is excluded from the operations of the Bill because it is satisfactorily covered—those are the right hon. Gentleman's own words—by another Act. I will pause to ask him whether, after all the evidence which has been accumulating in this House in the last fortnight, he still thinks that the Coal Mines Act satisfactorily covers that large commodity. I am very glad that that will be another issue which will come up. The right hon. Gentleman said that really this Bill was not much good—I agree with him—because unless you have a full-blooded piece of Socialist legislation you cannot really control prices, and that he was longing for the day when he could introduce a Bill of that kind. We should like to take that decision, too. I suggest that we should be much better occupied in putting these questions before the country instead of having a rehearsal of this very inconsistent Bill.
The reconciliation has come.
I am always on the best of terms with the hon. Gentleman.
What about the week-end?
Do you not wish that you could get it in your party? However, I must not allow myself to be drawn. I am dealing with the question of conditions which restrict the free play of competition. What are those words intended to cover? May I ask the President of the Board of Trade whether they cover—and this is most important—cases of foreign control? Quite the most important cases where commodities in common use in this country are subject to a price ring are cases which are subject to a price ring imposed by foreign control. May I give one typical example drawn from an industry to which, I hope, the right hon. Gentleman has been devoting a little attention—the wrapping-paper industry. That is an industry from which, I understand, he proposes on May Day to withdraw the measure of protection as another gesture to international good will. That industry affords a very interesting example of foreign control. There were two types of paper which were not made in this country. One was paper, called Kraft, and the other was greaseproof paper. A duty was imposed upon Kraft but not upon greaseproof paper, which was not asked for by the applicants. Both those papers were produced only abroad and both of them were in the control of a foreign ring. Since we started the manufacture of Kraft in this country, which we have done very successfully, the price has come down, I think, 30 per cent., because you have British competition. The other paper has been reduced in price by only something like 2 or 3 per cent. That paper, being a foreign monopoly, has remained within the control of the foreign maker, and the consumer here has not had the benefit because there has been no British production. Many lessons may be drawn from that example. The question I want to put to the President at this moment—this is a good, typical instance, and I have no doubt that he could give many more examples—is, how does he propose to deal with these cases of foreign domination, and, if not, what earthly good is this Bill?
Does this free play of competition apply to trade union restrictions which are adding to the cost of the article?
5.0 p.m.
It is very important that we should know. We are arguing whether these things are right or wrong. The President of the Board of Trade comes along and says that in the interest of the consumer he proposes to deal with cases where there is interference with the free flow of competition which raises prices. Supposing the added cost is due to trade union restriction, which restriction it is ad- mitted does add to the cost. Does the right hon. Gentleman in this Bill propose to deal with that interference with the free flow of competition and to give the consumer the benefit? If not, then his Bill obviously is a very one-sided Bill.
Does not the right hon. Gentleman also realise that the logical and inevitable issue of this Bill, if it is to work, is the elimination of competition of any sort or kind, and the substitution of the machinery of State control? He admitted that. He said: "My Bill is no good unless we can go the whole hog of Socialism." That is perfectly right. If his Bill means anything it means that he is taking power to make orders to control the price of any commodity at any stage. If he is to work his Bill he will have to do that.
Experience proves, and all authorities agree, that if you control prices at all you have to control them at every stage, from start to finish. That was the Wartime experience, and it has been the experience ever since. Sir William Beveridge, who has had more experience than any one else in these things, in writing a record of his War experience, said that in control it was generally all or nothing; half-measures were no good: was made after drawing on the experience of men who had been dealing with the control of prices in the Dominions, and in India during the War, as well as in this country.
This Bill is Socialism as against private enterprise, and a Measure of this character, and all that is involved in it, with its vista of Socialism, requires much justification. It is no good the right hon. Gentleman saying: "We want retail prices to be lower." Of course, we do. We all want that. What we have to consider is whether this Bill, with its powers, will give us lower prices. There is not the least chance of the Bill bringing prices down, because, again, experience has shown that price fixing tends to defeat its own object. The right hon. Gentleman can perhaps cite one exceptional case in one particular area, and can say, "Here is a particular commodity at the moment, the price of which I am able to enforce." But that is a kind of fallacious experiment which leads to endless trouble. What are the experiences which all countries have found in their attempt to fix prices? You always have to fix your price on the standard which is set by the least efficient producer. You cannot, for instance, fix the price of bread on the price of the ablest baker. You have to take the mean, and you fix a price which gives the efficient producer a very high and excessive profit. Both in this country and abroad I have found in talking to the most progressive industrialists that there is a tendency to reject the universal trust and the universal cartel. The efficient producers do not want that, because they say that it will make them take over or to be linked up with the inefficient producers whose costs are much higher than their own. If they still wished to fix prices to suit the efficient producers, the inefficient producers would say that they cannot produce at those prices. If you have that kind of cartel which you are bound to set up under this Bill, you will fix your price too nigh, and you will not encourage your efficient producer to reduce his price. The right hon. Gentleman will find that the very best industrialists in this country and elsewhere more and more tend to take that view.
Experience shows that if you fix a maximum price it tends to become the minimum price. That is always the experience. Again, you make no allowance for quality. If I remember aright, the last time we had this play on, the President of the Board of Trade was interrupted in one of his speeches by the hon. Member for Grimsby (Mr. Womersley) who challenged him in regard to cod. In regard to the question of cod prices, he was challenged on the quality, the character and the age of the cod. I think the conclusion at which the right hon. Gentleman arrived was that a fish was a fish, an unsatisfactory conclusion which hardly tells the whole truth. That is exactly the sort of conclusion you are bound to reach when you have a State machine trying to fix prices. Whether you fix the price of cod or anything else, there can be no allowance for quality, but every cut and every joint of the fish or the meat, as the case may be, fetches the same price. There is no elasticity. In the War we had complete control but how are we going to deal with the situation to-day? How is the right hon. Gentleman going to fix prices to-day, when prices change and vary so much at any given moment. We have prices fluctuating like a fever chart. How does the right hon. Gentleman expect that his State machinery will be able to give that elasticity which is essential in a complicated business? If you propose to control the trade of this country you must have quick elasticity, an elasticity of system worked by people who know their business and everything about it, and are prepared to back their own opinion and take their own decisions.
What insurance are you going to give to the people? When you fix your prices in this rigid way at a time when world prices are moving in the most unexpected manner, what responsibility are you going to take, and what guarantee are you going to give to the producers, to the manufacturers, the traders, all over the country, that the price which you fix by order is not going to involve them in a loss? Are you going to give them a guarantee? If not, then we have another example of the new Socialism; control without responsibility. That is the most cowardly form of control that any Government could take. If the Government believe in this policy they ought to underwrite it firm and give a guarantee that their operations are not going to involve the traders and the country in loss.
It is plain from all the examples that I have quoted that once you start on this slope you will inevitably be involved in control at every stage. Those are the reasons why the Royal Commission on Food and every authority that has pronounced on the subject were against price fixing and why they were in favour of informed publicity as the best remedy. What a splendid chance for the co-operative society. I can conceive the right hon. Gentleman the First Lord of the Admiralty in former days being confronted with this position. It would have roused him to very effective action on behalf of the consumer to be told that as a result of informed publicity someone down the road was found to be charging too much. He would have had posters bigger than his election posters saying that he would supply the goods at the right price. If United Dairies charged too much for milk, he would be ready to fill the gap and more than fill the gap. The President of the Board of Trade seems to think that there is something new in our attitude, in that we are willing to have informed publicity. If he will carry his researches back beyond the halcyon days when his Government assumed office he will find that not only did we announce our policy but we stated exactly how we would do it. We said that where we found that there was a case of information being withheld, a simple course was open to us. We would make use of the Tribunal of Evidence Act. An inquiry could be held. That course has this advantage that you do not frighten every trader in the country, and you are able to use the remedy where you require it.
Why did not the right hon. Gentleman take that course? Why does he bring an out of date Bill to the House. Why did he not come to the House and say: "I want more powers of inquiry under the Tribunal (Evidence) Act." Every one on this side would have given him such power. [ Interruption. ] Of course, we would, just as my right hon. Friend the Leader of the Opposition announced publicly, while he still had this responsibility, that that would be the attitude which he would take. Therefore there is absolutely nothing new in our attitude. The Royal Commission on Food commended that course. They said two things "Carry the trader with you as long as you can"—when you need further power let it be to secure informed public opinion—"but do not go in for price fixing, except in a national emergency where there is an acute shortage." What about an acute shortage? To-day there is a glut of everything. This is the worst possible time to bring forward such a scheme. There is a glut in food, in raw materials, in manufactured articles, and in manufacturing capacity. There is a glut in the shops. The anxiety to-day is to sell the maximum not to establish price rings to hold prices at unreasonable levels.
In the face of all this wealth of experience the right hon. Gentleman brings forward a Measure which will upset and harass every industry and trade in the country. I should have thought trade is harassed enough already.
We pass from the general principles of the Bill and its bureaucratic powers. The President of the Board of Trade says that hon. Members on this side had something to say about bureaucratic powers. We had; and we shall have something to say about bureaucratic powers this time. On the last occasion, I said that the Bill was the apotheosis of bureaucracy. I say it again. In that respect no change has been made in the Bill; the divinity is as hedged round as ever. The Board of Trade can hunt anyone and everyone; and let the House observe that in their hunt they are not bound by their own rules. In the second Schedule are the rules which are to govern an inquiry which is to precede the making of an Order; the draft Order has to be published and people are to have an opportunity of making complaints, and so on. But the Board of Trade can get round all that; they need not bother with all these formalities. They can make an emergency Order whenever they like without complying with, any of the provisions of the Bill, and, if Parliament itself sets aside an emergency Order or fails to implement it, the President of the Board of Trade can make another emergency Order and override not only the poor trader but Parliament itself. Is the apotheosis of bureaucracy too strong a term to apply to powers such as these?
I should like to draw the attention of the House to two of the brightest gems in this bureaucratic crown. In Clause 5 it is laid down, as one would suppose, that when an Order which is going to affect the business life of everybody in a particular industry is made it has to describe the article to which it refers, the people who are to be affected, and the area in which it is to operate, with precision. But what do you find in the next Clause? In the next Clause you find that nobody is to be able to say anything against an Order or escape from its operation or from the penal consequences of an Order on the ground that it lacks precision. I think that is a gem. A Court of law may say that nobody can possibly construe a thing so vague, but you are not to be able to plead this in your defence; you are still to be liable. There is another gem which is almost as bright. Hon. Members will find it in the Second Schedule, paragraph (7), which provides that a man may be prosecuted in spite of the fact that an Order was wrong and was revoked, or was allowed to lapse. The trader turns out to have been right and the Board of Trade wrong, but he can still be prosecuted. "I will learn you to be right," says the President of the Board of Trade.
The late Lord Curzon of Kedleston once said of a particular administrative act of which he highly disapproved that no such administrative outrage had been committed since Caligula made his horse a consul. That would be a fairly apt description of the powers which the President of the Board of Trade is seeking to arrogate to himself in this Bill. And to what purpose? Endless, useless worry for half the field of British trade leading to State Socialism at the end. The President has not been able to quote a single authority in favour of this Bill. When the Government were last in office they set up the Balfour Committee which made a most valuable report, and the Chairman, Sir Arthur Balfour, is now the man whom the Government themselves have selected as the head of their Economic Council of State. He occupies a prominent position, he is always called into council, and was selected by the Prime Minister to conduct the inquiry into British trade, to find what was wrong with it and what should be done to put it right. What did the Balfour Committee say about these proposals? They were dead against them, and strongly against going beyond informed publicity. They were against any attempt to fix prices. They said:
The right hon. Member for Hendon (Sir P. Cunliffe-Lister) has said that this is a revised performance of a play which has already appeared on the Parliamentary stage. That, of course, is so, and each of us is called upon to play his accustomed part. The right hon. Gentleman once more appears in the Mephistophelian role of "the Spirit which always Denies", for that is the real purport of the Amendment which you, Sir, have read from the Chair. With much elaboration and a good deal of verbiage the essence of it is that the right hon. Member invites the House to do nothing in particular. I was surprised that the right hon. Gentleman, in his concluding words, made an urgent appeal to Parliament to cease to interfere with industry. It is strange that such an appeal should come from the right hon. Member when he and his friends are engaged in the most active campaign to place all industry at the mercy of tariff measures which, by a series of log rollings and understandings between different industries, are to place each one in turn at the mercy of Parliament to determine whether the industry is to be encouraged or discouraged, protected or unprotected, and whether its prices are to rise or fall. Hon. Members opposite are the last to urge that the interference of politicians with industry should come to an end.
The right hon. Member in adopting a negative attitude to this Bill does not realise the fact that there is a real problem to be dealt with. It is a problem which arises from the tendency of modern industry to create great combinations. It is what some of us have called the Second Industrial Revolution. Instead of the free play of competition extending over the whole range of industry and supply, as it used to do, you have now these trusts and combines, and other forms of trade organisations, which can control prices. There you have a new situation of which Parliament must take cognisance in the interests of the community.
If I have a complaint against the Bill, and I have, it is that it gives a wrong impression to the public at large and is causing a great deal of anxiety among private traders throughout the country which could have been avoided if the Government had introduced a Bill to do what the President of the Board of Trade says is the real purpose of the Government; and that is to prevent abuses of monopolies. The President of the Board of Trade based his case almost entirely upon specific instances where the prices of commodities are controlled, and, to use his own words, artificially raised by the existence of trusts or rings, whether in the supply of coal or oil, or bread or milk. He said that the House ought to concentrate its attention upon those bulk articles over which some form of control, some form of monopoly, exists in greater or lesser degree, and he said that where there is free competition prices are kept low and the community has little cause for complaint. Why did he not introduce a Bill which in its Title, in its Preamble, and in its Clauses, made it clear that that was the purpose of the Government instead of introducing this Bill so wide in scope? Is this a Bill to prevent abuses of monopolies, or is it not? If it is a Bill to prevent abuses by monopolies, and I include all forms of quasi-monopolies, would it not have been far better—and would it not have secured the assent of public opinion—if it had a title which indicated this and Clauses which clearly specified it. If it is not a Bill for that purpose, the President of the Board of Trade had little ground in his speech for any measure of wider scope because his argument was entirely based on that narrower ground.
It is not surprising that traders are alarmed; and many of us have received telegrams from trading organisations which are under the impression that the Bill may give room for a widespread inquisitorial inquiry into the accounts of any trader, that it may even lead to a complaint being investigated by the Consumers' Council sent in by a single individual person with regard to a particular transaction in one shop, and that it may result in a general system for fixing wholesale and retail prices throughout the whole range of supply. That is not the intention of the Government. Their intention is to deal with the real problem which exists. There are monopolies, there are combines and trusts, and the question which Parliament as representing the nation has to consider is the right course to be adopted towards them. There are four courses open. One is to try to stop these organisations altogether. Public opinion favoured that course some years ago. It was said that they were a danger and must be broken up, and free competition restored everywhere. The old cry was, "Down with trusts and combines," Now public opinion has changed, and in regard to that the Balfour Committee used these words: some extent that attempt has proved to be futile, but so far as it does prevent the formation of cartels, it is now found by many observers in the United States to be disadvantageous, and that no means exists for checking over-production. President Hoover has recently sent an Address to Congress in which he invites Congress to consider the working of the Sherman Acts, and there is a large body of opinion in America which thinks that the policy of trying to prevent combinations was wrong and inexpedient in the National interest.
That is one possibility which should be ruled out. Another is the action of Conservatives, who say "Let us do nothing; let us point out every possible difficulty and objection to action; let us riddle any particular proposals with detailed criticism; and in the main let the public interests be left unprotected, let the monopolists exploit the public interest as they like, and let us give a free run to private interests at the expense of the community." That is really the essence of the Conservative Amendment. It also is a course which ought not to be adopted. The third is that which the President of the Board of Trade suggested at the end of his speech as the ideal one, namely, to nationalise these industries or many of them under some form of public ownership and management. With regard to some of them undoubtedly that is right, and we all agree, when it is a case of natural monopoly. The late Conservative Government in one of their rare instances of activity and initiative introduced and passed a Bill to nationalise—that is what it comes to—the industry of electricity supply. That was a great advantage to the community. It was a Socialistic measure, to which all parties agreed, and was quite justified in the circumstances. There may be other instances in which further extensions may be made in that direction.
The Royal Commission on the Coal Industry, over which I had the honour to preside, suggested that local authorities might be authorised, where they desired, to undertake the retail distribution of coal. That was the opinion expressed not not only by myself, but unanimously by the Commission, including one distinguished and representative member of the Conservative party. It may be that further extensions may be justified in certain cases, but not in the near future with respect to all of them. I shall not argue, here, the advantages of private enterprise and social control, where the one should be regarded as predominant and where the other, but in any case, as the President of the Board of Trade has said, there is no probability in the immediate future that this Measure can be applied over the whole field, and therefore it is necessary for the time being to adopt something less drastic. Here it is argued that there should be some public authority which should investigate those cases in which there is a monopoly or quasi-monopoly and in which there is reason to believe that the public interest is prejudiced.
That was the recommendation of the Liberal industrial inquiry, to which I have referred. We held that there should be a council—the report was published some years ago—which should represent the public interest, which should examine all these cases and give a wide measure of publicity to the facts, and, more than that, in exceptional cases that their powers should include the control of prices. That general policy was endorsed by a meeting of the National Liberal Federation, held in October, 1928, which advocated the establishment of a trust tribunal. For these reasons we supported the Bill of last year and we shall support to-day the Second Reading of this Bill. We think there is need for such action for this purpose. But we also hold that the measures must be very carefully advised and cautious in their application. We said last year, and say now, that any general measure of control over all prices is quite impracticable—a view which has also been expressed by the President of the Board of Trade to-day—that the variety is so great in the retail sale of commodities, varieties of quality, varieties due to seasonal conditions and locality, that it would not be practicable, even if desirable, to exercise or attempt to exercise any general or universal measure of control over prices; that the retail prices of goods vary often from place to place and from week to week, and that it is only possible to exercise a real control over standardised articles which are subject to the control already of the large combinations, which are dealt with on a great scale and which lend themselves to schedules of this character.
We are grateful to the President of the Board of Trade for having introduced in this new version of his Bill several Amendments which we suggested last year. Some of them are of minor importance, but one which is of great importance and to which I would urge the House in all its sections to give close attention is the Amendment which has been introduced this year into Clause 5—the Clause which deals with the occasions on which prices can be fixed. In last year's Bill that Clause was unlimited in its scope, and wherever the council thought right to recommend, and the Board of Trade thought right to accept the recommendation, prices might be fixed with regard to commodities of any class. We suggested that this should be limited to monopolies or quasi-monopolies. To find an exact definition of a positive kind, of a monopoly, is exceedingly difficult. If Conservatives will try their hand they will find it is very hard to adopt a form of words which will not be much wider than they intend or so narrow as to become ineffective. The Amendment which was moved by us in Committee last year and has been adopted by the Government in this Bill, is a definition which can be called of a negative kind. It is a definition which says that the powers are to apply where conditions exist which restrict the free play of competition. Those are exceedingly important words, and the use of them differentiates this Bill from last year's Bill, because it applies only where there is not a free play of competition, that is to say where there are conditions of monopoly, quasi-monopoly or some form of control. The question that arises is, whether that limitation might not be made to apply to Clause 2, and, indeed, to the Bill as a whole. That is a matter which we shall no doubt discuss in Committee. It is a point which will have to be discussed.
There is a further point which is not of such great importance but which may allay the anxieties of some of the trading classes. It may be desirable to put plainly on the face of the Bill what is undoubtedly its intention, namely, that it is not intended to apply to individual complaints with regard to specific transactions, nor to involve the exceptional examination of the affairs of any particular undertaking, but that the inquiries which are contemplated are general inquiries relating to a whole trade or a whole section of trade, or to one particular commodity or group of commodities, and that the Council is intended to go into some question as a whole and not to pick out individual traders and try to find them at fault in charging too high a price on a particular occasion for a particular article.
Is the right hon. Gentleman saying what the Bill contains or what he thinks it contains?
I am saying what the Bill really means but does not express. I understand from the explanations of the President of the Board of Trade, and indeed from the purpose of the Bill and from its general wording, that what I have expressed is the real intention of the Bill, and that the right hon. Gentleman, if the Bill were passed, would be greatly surprised if it were used to apply to some particular transaction. However, my view is that this ought to be expressed on the face of the Bill. I am not responsible for the drafting of the Bill. We shall debate that point also in Committee. Another point is that there should be full opportunities for the representatives of the trade interests concerned to state their case at every stage. What some traders fear is that these matters may be decided behind closed doors, without their having the fullest opportunity of putting the opposite view, that the Consumers' Council or some committee of it may suddenly issue a ukase which will come as a blow to the trade without their having previously been informed of its being in contemplation, and without their having the fullest opportunity to state their point of view. I imagine that there will be no objection to its being made perfectly clear that such a change is not contemplated.
I cannot for a moment believe that a body of representative and responsible people, such as the Council will be, would ever permit such an abuse to arise, and I am sure that naturally, as a matter of course, like all other administrative bodies in this country, they would give opportunities for those concerned to state their case at every stage. It may be desirable to put that formally into the Bill so that it should be known. However, these are points for the Committee stage. To-day we are dealing simply with the question, ought there to be any legislation dealing with these matters or not? Conservatives say, "No"; they ask the House to do nothing. Our view is different. We say that there is a real evil to be met and a real danger to be obviated. This Bill gives an opportunity for effecting those objects. For these reasons, this year, as last year, we shall give the Bill our general support.
While I was listening to the speech of the right hon. Member for Hendon (Sir P. Cunliffe-Lister), I could not help feeling that if he were to be taken as the authority, things were quite all right and nothing need be done; that if there was any overcharging at the moment, things would right themselves, and so why bother? He reminded me of a notice that I saw in a shop window a few years ago.
"Although prices are on the up grade, we can still do you at old prices."
Was that a co-operative store?
No, and I am pleased to tell the hon. Member that it was not a fish shop.
It is a fishy story.
Not so fishy as some of those which we have heard from the hon. Member. The President of the Board of Trade has pointed out that the object of this Bill is to stop profiteering in food and other essentials of life. If that is the object, we ought to address ourselves to two questions. First, is profiteering taking place, and second, if profiteering is taking place, is the method proposed in this Bill the right way of stopping it? I do not think that any hon. Member in any part of the House would deny that profiteering is taking place and has been taking place far too long.
Will the hon. Member say in what industries?
I will tell the hon. and gallant Member of several industries later if he will contain himself in patience. There is a widespread feeling in the country that profiteering is taking place, and there is also a feeling especially among housewives in this country that they are not having a fair deal, and that prices are much higher than they need be or ought to be. Because of that uneasiness in the country, any Government which boldly tackles this problem will have the gratitude of the nation, even if they do not succeed in their attempt, as long as they make the attempt to face up to facts which are so evident. The spread between the producers' price and the consumers' price is far too great. If this Bill succeeds in minimising the profiteering which is taking place it will do something which is just as welcome to the housewife as if we were to increase the wages of her husband. All Members of the House know that for the last seven years wholesale prices have decreased to the extent of 20 per cent., while retail prices in the same period have only decreased to the extent of six per cent. What has happened to the 14 per cent.? I have not heard any explanation of how that 14 per cent. has been dissipated, between the producers' price and the price paid by the consumer. That is an important problem and the Consumers' Council ought to face up to it as one of their first jobs.
I take the simple illustration of a cauliflower. You may buy a cauliflower for 6d. and yet the producer will get less than 1d. out of that 6d. for his work. In a recent Debate on the cotton industry an hon. Member opposite brought out the interesting fact that a piece of cotton cloth which cost 4s. 3d. when it left the mill in Lancashire, had been traced to a shop window in London where it was marked 16s. 11d. The spinners and weavers of Lancashire are eager to know who gets the difference between the 4s. 3d. and the 16s. 11d., especially when they are suffering as they are suffering now, and have been suffering for some years past. When they are asked to agree to wage reductions they do not feel very much inclined to do so knowing as they do that somebody is getting a profit represented by the difference between 4s. 3d. and 16s. 11d. to which that somebody is not entitled. I do not deny that there are many producers and retailers who are profiteering but my main contention is that the profiteering is principally done by middlemen and not so much by producers or retailers. I am supported in that contention by the report of the Linlithgow Committee which, in discussing the problem of vegetables and fruit in connection with Covent Garden Market, pointed out that in many cases there were no fewer than six intermediaries between the grower and the consumer. There was the London commission salesman who received the goods from the grower; the London wholesaler; the London commission buyer who bought on behalf of the provincial towns; the provincial wholesaler, and often a second provincial wholesaler; and, finally, the provincial retailer.
The chief criticism of this elaborate system—and it can be levelled against not only the fruit and vegetable trade but many other trades and especially the cotton industry—is that there are too many individuals between the producer and consumer. In this case three or four of these six could be dispensed with, if there was a decent reorganisation of the retail side of the industry. In the cotton industry also, many middlemen could be displaced if there was a decent reorganisation. In fact if these middlemen were eliminated it would be a gain to the community. One might adapt the words of Koko the famous character in Gilbert and Sullivan's opera "The Mikado" and say that if this Bill succeeded in eliminating those middlemen their loss would be a distinct gain to Society at large. If a man or a company is charging reasonable prices that man or that company need not fear the operation of the Bill. It is only those who are charging shamefully high prices who need fear the operation of the Bill, and this House would not be doing its duty if it did not safeguard the interests of the general community especially the consumer. Too often, in this House we forget the interests of the consumer. I have heard hon. Members opposite say that the way in which the Bill proposes to deal with the problem is the wrong way, and that the consumer has it in his or her hands to deal with high prices. They say that if the consumer is overcharged, then the consumer ought to buy elsewhere. But in many cases there is no "elsewhere."
The co-operative.
I shall refer to the co-operative store later, but in many cases there is no "elsewhere" for the simple reason that there are so many monopolies and combines, controlling in some instances as many as 5,000 shops. Many of the managers of those retail ships do not know who employs them, the ramifications of the combines are so extensive. When hon. Members opposite say that the remedy is in the consumer's own hands, they convey the impression that free competition exists, but, to a great extent, free competition does not exist to-day. The growth of horizontal and vertical combines has almost eliminated the competition which hon. Members opposite have in mind. Recently, I have been reading about the handsome profits made by some of these combines, and I have been surprised at the very substantial profits which are being made by them even at such a time of financial slump as the present. I have an uneasy suspicion that those profits are not being made, as the Americans would say, "on the level." I notice that an hon. Member opposite smiles at that remark, but the Food Commission also held that view. This is what they had to say on this very question: women now recognise the importance and need of the co-operative movement as a consumers' organisation that so many of them are joining it in self-protection. They are joining it in order to safeguard themselves as consumers. Like wise people, they know it is no use joining a trade union to protect yourself as a producer, if you do not join the co-operative movement, the largest consumers' organisation, to protect yourself as a consumer.
6.0 p.m.
In conclusion, Clause 2, Sub-section (2) of the Bill provides that, in addition to the articles named, the Consumers Council may, on the direction of the Board of Trade, concern themselves with "any other article of common use." In these days of speed and rush quite a number of people suffer from headaches, and quite a number of aspirins are used. I think we can say under these circumstances that aspirins are things of common use, but aspirins in the majority of cases are controlled by these price-fixing organisations, like the Proprietary Articles Trade Association, whose operations, I hope, will be carefully watched by the Consumers Council. Let me give an instance of what has taken place. There was an advertisement in the "Chemist and Druggist" Supplement for 21st January, 1928, which read as follows: to it and boldly attempt to stop it. I support the Bill, and I wish the Government God-speed in all their efforts to stop this shameful profiteering.
This Bill has already been discussed at some length in the House of Commons, and I have no doubt that in the months to come those hon. Members who are fortunate enough to join the right hon. Gentleman the President of the Board of Trade in a further discussion of this matter will not be dilatory or inclined to skimp the examination of this Bill. I therefore want to confine my remarks this afternoon merely to the discussion of the general principle raised by the Bill, and in particular to discuss the effect of the difference which we find between the Bill to-day and that of last year. The House will no doubt remember the speech made by the right hon. Member for Darwen (Sir H. Samuel) on the occasion of the Second Reading of the Bill of last year. It was a trenchant analysis of the whole industrial position, of the dangers of monopolies, of the failure of the Bill as then drafted to deal with the real danger, and of its power to create a multitude of offences. Mixed with my admiration for the right hon. Gentleman's speech was surprise that alone, I thought, among the Members of the House he failed to convince himself, because he followed his trenchant attack upon the Bill by a firm vote in its favour. In those days I had not had so long an experience of the right hon. Gentleman and had not realised that he was the possessor of a superb bark but an almost negligible bite.
I must say that during the course of his speech to-day I hoped he was going to adopt a different policy, because at one period of his remarks he described the Amendment put down by my right hon. Friend the Member for Hendon (Sir P. Cunliffe-Lister) as advice to the House to do nothing in particular, and this seemed to me, under the new formula which has been conceived during the last week, to fit in so entirely with Liberal principles that I expected him to give fervent assent to my right hon. Friend. Unfortunately, however, once again he has been unable to put his speech into practice. I was rather surprised that he seemed content to recognise the Amend- ment which has been made in this Bill since last year as making some substantial concession to the point of view which he put forward and one with which, I confess, I am much in agreement. He contends that the necessity for a Bill of this kind is limited to the case of a monopoly or a quasi-monopoly, and he apparently is prepared to contend that the words "conditions exist which restrict the free play of competition" do in fact reduce the operation of the Bill to a monopoly or a quasi-monoply.
I am afraid that I cannot accept that contention for a moment. If the words had been some such as that there was no effective opposition, or stronger words of that nature, it might be argued that the operation was restricted to a monopoly, but if these words mean anything at all, they mean that wherever there is any restriction of competition whatsoever, the council will have power to recommend to the Board of Trade; and as the hon. and learned Gentleman the Attorney-General is in his place—refreshed, I hope, from his holiday in Portugal and inspection, no doubt, of its main industry—I hope he will be able to inform the House what is the precise legal significance of the words "free play of competition." Have the words "free play" ever been used before in an Act of Parliament, except possibly the Gaming Act of 1844; and can he give the House any information as to what precedents there are for the extent to which those words apply?
If, for instance, you have an article the production or supply of which to-day is in the hands of, say, six persons, and if you have an amalgamation between two of them, you will have effective competition between five persons, but you have certainly, as compared with the previous competition between six, a restriction of the free play of competition; yet the right hon. Gentleman could not argue for a moment that the reduction of competitors from six to five had made a monopoly or a quasi-monopoly in an industry which had before been freely competitive. Is that the kind of thing which the Bill is intended to cover? In circumstances of that kind, if one shop in a town is closed down, if an amalgamation or agreement is made between two partners, although they still leave suffi- cient competition to react upon the price, it seems to me that under this BUI it will be possible to say that there has been a restriction of competition and that the Board of Trade will be able to take action.
This change, too, seems to me to introduce a new danger. The right hon. Gentleman and his colleagues are, I know, in favour of the development of the principle of rationalisation; they welcome wise amalgamations; they welcome wise agreements for the elimination of redundant services and for agreements which will cut down wasteful and cutthroat competition, but by the inclusion of those words, in a case of this kind, they have erected a danger signal against any amalgamations of that kind. They are making those who might be considering an amalgamation say to themselves, "Possibly if we enter into this agreement, we shall bring this particular article under the scope of the Bill, and we shall lay ourselves open to the four separate heads under which we can either be fined or sent to prison." And, of course, the old dangers which existed under the Bill of last year will exist under this Bill, dangers so great that they make one wonder whether the problem—and problem there is—can really be dealt with upon these lines at all.
Hon. Members opposite talk very glibly about the problem, although, it is true, they disagree about what it is. Some of them talk about the elimination of the middleman and the redundant services, as if this was a Bill to produce efficiency in distribution. Others talk about the excessive profits which are made on certain articles, as if this was a Bill merely to reduce profiteering. I do not blame them for the confusion that exists in their minds, because under the Bill as it stands I think it is possible that the Consumers Council could become, not only a judge of profiteering, but a judge also of industrial efficiency. It is a curious thing that in perhaps a cursory examination of the words of the Bill I have never yet found the word "profit" used a single time. In every case it is a question of price. The Consumers Council can inquire into the production of an article and, having made that inquiry, they can say that an excessive price is being charged for it.
What does the right hon. Gentleman mean by an excessive price? Does he mean an excessive price in view of the existing methods of production, or an excessive price in view of what the Consumers Council may think an antiquated and expensive method? Would the Council, for instance, be able to say, "It is true that as you produce these goods at the moment you are not making an excessive profit upon them, but the machinery that you have is antiquated, and your system of production is out of date. Were you to adopt this system, were you to instal that machinery, the reduction of price would be so great that the present price is really excessive"? In fact, are these seven people, two of whom are to be women, to become judges of the industrial efficiency and the economy of production of all the vast breadth of productive industry which can be brought under the scope of this Bill? I cannot imagine that that is the intention of the right hon. Gentleman. I am sure he really means to limit the scope of this Bill to cases where it could be proved that an excessive profit, not an excessive price, is being charged, but I would point out that as the Bill stands there is nothing in it to limit the operations of the Council to profit and not to price.
Several right hon. and hon. Members opposite have pointed out the undoubted fact that at a time of rapid and severe fall in wholesale prices there has been a certain lag in a corresponding fall in retail prices, and the suggestion has been that that lag is due entirely to excessive profits on the part of the retailer. But I would suggest that the factors which have tended to prevent that simultaneous fall in retail prices are not in fact excessive profits at all, that they are due, in the first place, to what the right hon. Gentleman calls the rigid element in the retail trade, to the fixed charges which have to be borne, either by Government interference or by trade union agreements, and to the fixed dead-weight of rent, which, in a long-term lease, is unaffected by any fall in commodity prices, and finally to what has been perhaps the most astounding phenomenon of the present grave industrial depression, namely, the failure of interest charge to follow the downward course of other commodity prices. Then, of course, the modern range of articles which are offered, the production of a wide variety and choice in this country, and the refusal of the individual over here to adopt the methods of standard purchase as in America, have, by causing the retailer to carry a larger stock of more and more varied articles, necessitated a longer period in which he has to write off the lasses which the fall in commodity prices makes him incur on these articles.
It is to these facts, much more than to the facts of undue profit-making, that I attribute this lag in the retail prices. There is nothing in the action which we could take under this Bill which would affect that. This Bill is aimed at the reduction in the profit, and the effect of any action you took would be to make the retailer reduce his price. He could reduce his price in any way he likes in order to maintain his profit. He could reduce his wages, and the quality of the goods he sold; he could reduce the amenities under which they are sold to the customer, and reduce the service of the distribution which he undertook. In this way he could make a reduction in price and maintain his profits intact. I disagree entirely with the view of the right hon. Gentleman. He said that the danger we had to meet was not the danger of monopoly. I believe, in fact, that that is the only danger and that the problem of prices in the future will simply be the problem of prices under a monopoly. I admit that the problem exists, although it is not so serious to-day, or will be so serious in the future, as was thought in the past. The world has changed from a sellers' world to a buyers' world. The power has passed from the hands of the producer to the hands of the consumer, and the attitude of the public mind towards the trust and the combination has changed, because the danger from the trust or the combination has obviously become much less. This is a problem of monopoly, and as monopoly can be proved to be injurious, steps will have to be taken to deal with the danger—
What steps?
I am coming to that. The right hon. Gentleman is in the habit of thinking so quickly that he does not allow a slight lag in those whose mental processes move less agilely than his. We have in this country examples of physical monopolies which already exist in the distribution of electricity and of gas. In cases of that kind, steps have been taken under statutory authority to deal with the possible danger that might arise from the position of that monopoly, and it has always seemed to me that this House in the past has shown the greatest wisdom in the steps which it has taken. The House has not, it will be observed, tried to meet that danger by the rigid fixation of price, such as is adumbrated in this Bill. Parliament has very seriosuly tackled the matter by linking together the problem of profit and of price, and after providing for the monopolistic concern a certain fair return upon its capital, it has made any further profit distributed to the shareholders dependent upon a reduction of price to the consumer.
There has, therefore, been taken away from such a concern all the incentives for those gross forms of profiteering which hon. Members opposite fear, because if that gross form of profiteering is never to be allowed to show itself in the form of increased dividends to the shareholders, it is a painful process which is undergone for no purpose; and the fact that before they can increase the dividends to the shareholders they have to make a similar concession to the consumers, has proved an effective bar to that form of excessive price which arises not from inefficiency of production, but from a deliberate increasing of profits. This monopoly danger would be much better dealt with on those lines. It would, I agree, be much more difficult. It would, for instance, require a precision of definition which is notably absent from this Bill. You would not be able to skimp the definition of monopoly as the Amendment to Clause 5 has been skimped. The House should be prepared to devote time and trouble to tackle that task, however difficult it may be, because I fear that under the present Bill the Government are, for the sake of dragging in a few cases, which are those with which they will be unable effectively to deal, spreading a net which will harass the whole trading community in the country.
The right hon. Gentleman has tried to reassure us. He has told us, "We have got this power in the case of all the multifarious articles, but it is only just here and there that we shall use it." We are a little suspicious of the right hon. Gentleman. We do not admire his horse, but we like less the stable from which it comes; and when he tells us that he has no intention of interfering with the legitimate activities of the private traders, and that he will not put any handicap or obstacle in their way, we cannot help remembering that he and those who sit behind him have not in the past expressed the friendliest of sentiments to distribution remaining in private hands. The words in Clause 2, "production, distribution and supply," are extremely reminiscent of a phrase which we used to hear thundered from a thousand platforms before right hon. Gentlemen opposite got into office. The right hon. Gentleman has shown the greatest desire to conciliate. He has spoken almost caressingly, with all that defensive loquacity of a chairman addressing a rather anxious meeting of shareholders. We are not sure that that really relieves us from a fear of his more nefarious purpose. It is true of the right hon. Gentleman that, though he may be a pirate, he is the mildest pirate whoever strained a syllogism or split an infinitive.
Those of us who are still readers of stories of adventure are not entirely reassured by that, because the right hon. Gentleman is a well-defined type. There are others, of course. There is the technically more correct type, such as the hon. Member for Bridgeton (Mr. Maxton); and there is the cheerful, well-developed type, such as the Secretary of State for War. If it comes to dirty work for the night, they are not to be sneered at, but we who read our adventure stories know that it is when you meet the man with a smooth voice and a quiet accent, that you expect the very depths of nefariousness and wickedness, So we suspect that this Bill, despite all the protestations of the right hon. Gentleman, is one more step in that impossible programme to which right hon. Gentlemen opposite have set themselves which they must themselves see now is doomed to end in failure—the programme of accommodating their loyalty to a Socialist theory to assisting a practical capitalism. We on these benches believe in a capitalistic and individualistic form of industry. We can understand, although we do not agree with, the theory of a State plan and a State-controlled industry, but we do not understand, and we cannot believe in, a system which divides the control of industry between a Government without responsibility and an industry without power. For these reasons, hon. Members on this side, although they realise that there is a problem which sooner or later will have to be faced, will go into the Lobby against the Bill. We do believe that it will not meet the problem, but, that in the conditions in which enterprise is conducted to-day, it will aggravate it.
I hesitate to follow the hon. Member for Westmorland (Mr. O. Stanley) because of his extraordinary capacity for putting the weakest possible case forward in the most brilliant language. I have listened to the whole of the Debate, and I think that I am the first of the new players on the stage, in accordance with the definition of the right hon. Gentleman the Member for Hendon (Sir P. Cunliffe-Lister). I have not taken any part before in a discussion on this Bill, but I am keenly interested in its provisions. I support the Measure to the full. I am not without some knowledge of what it may mean to the trading community, and in particular to those persons in whom I am interested, namely, those employed behind the counters of the many shops of this country. I am not sure that the House has appreciated the ramifications of the wholesale and retail distributive trades. While the coalmining industry has remained more or less static in its operations, and engineering, shipbuilding and agriculture go on pretty much as of yore, the changes in the handling of the commodities which are sold over our shop counters have been extraordinary and multifarious during the last 10 or 15 years. When I tell the House that the increase in the number of shop assistants since the War is estimated at approximately 300,000, it will give some indication of the colossal nature of the problem with which we are dealing.
I approach this subject not from the point of view of the wholesaler, retailer, consumer, producer or manufacturer. They are all represented in this House, and Members who can speak much more eloquently can deal with their difficulties. I would like to ask the Minister who will reply to enlighten me on the provisions of Clause 3. The first Sub-section of the Clause states that the Council may
The Consumers' Council, I imagine, will have to find out from the person who actually sells the article whether the price is too high. In passing, I may say that I am inclined to agree with one remark made by the hon. Gentleman opposite that if and when the price of an article is reduced the shopkeeper may still secure high profits, the point being that the cost of the article to the consumer does not always determine the profit made in disposing of it. There is also this to be said, that if all the people of the country joined the co-operative movement this Bill would not be required, because the co-operative movement is by far the best consumers' council devised. I say that although I am not officially connected with the co-operative movement. When the officer of the Consumers' Council walks into a shop and inquires of the manager or assistant at what price he is selling a certain commodity, will the manager, in giving him the information, be rendered immune from persecution by his employer? As the President of the Board of Trade knows, I have dealt with this point in correspondence with him. There are means of pursuing and victimising an employé and damaging his career apart from telling him that he is dismissed because he has given away the secrets of the trade. I want the President of the Board to say whether the man behind the counter who gives information to the official of the Consumers' Council will be immune from dismissal.
I happen to be an official of a trade union with approximately 100,000 members employed behind shop counters. I have made inquiries as to what they think of the provisions of this Bill, and that is one point in which they are all extremely interested. I also represent a Lancashire constituency, and there I find complaints on the lines of those mentioned by the hon. Member for Mossley (Mr. H. Gibson). I wish he were in his place now, because I have tried to analyse the difference to which he called attention between a fall of 20 per cent. in wholesale prices and a fall of only 6 per cent. in retail prices. There are hon. Members who sit with me on the Select Committee inquiring into the conditions of labour in shops, and I feel sure they will agree that the lower rate of decrease in retail prices as compared with wholesale prices can be accounted for in part by the increasing demands which the public now make upon shopkeepers and their assistants. The shop of to-day is very different from that of a quarter of a century ago. Then it was the custom for a woman to take a basket to the shop and bring the goods home. To-day she may telephone for her requirements and buy them in small quantities. In fact, the shop has become very largely a social institution and a pantry combined instead of a shop. I am upholding, and I make no excuse for it, the rights of those behind the counter. The distributive trade with which we are dealing this afternoon has grown enormously. I have been astonished to note that there are about 1,750,000 persons employed for wages in the wholesale and retail distributive trades of this country. Without exception it is the largest industry of all in the country, and it has enormous ramifications.
I have already put the chief point which I wish to raise on this Bill, but when we look at the Bill itself, and note the commodities which are to be the subject of inquiry, I feel there are other items which call for immediate attention. One complaint that is heard on all hands from working people is the high rents charged for decontrolled houses. With some of them it is not so much the price of butter or cheese that is in question, but they feel they are being exploited unduly by the exorbitant rents of decontrolled houses. In my business as secretary of an approved society I have also noted the very high charges for surgical appliances and kindred articles, and it is astonishing to note the profits that are made on them. Then, again, I do not know whether it will be within the power of the Consumers Council to look into the high charges for theatre tickets, or the heavy cost of meals on trains. It is remarkable how prices keep up in those directions. [HON. MEMBERS: "Or the cost of meals in this House!"] Another point on which I would like information is as to whether, when a shopkeeper has offended the law under this Bill, the prosecution will be aimed at the employé who has committed the offence or the employer who has instructed him?
I have little more to say, except that there is a great deal of misapprehension as to the gulf between the cost of the commodity at the source and the price at which it is sold over the counter. Considerable ignorance has been displayed on that score. I speak with a little knowledge, for I worked in a shop for five years. It is assumed that the difference between the cost of manufacture of an article and the price at which the retailer sells it is far greater than it ought to be, but hon. Members must not forget the cost of insurance, transport and rates and taxes, all charges which enter into the final cost of the article over the counter. There are some cases, however, where there is no doubt that the Consumers' Council will be able to give a lead in preventing gross profiteering.
I am interested in this Bill, and I trust it will become law, but I think it is only the beginning of an inquiry into a very much wider problem. I look sometimes at that extraordinarily interesting blue book called the "Abstract of Statistics for the United Kingdom," and the one thing that astonishes me every time I go through that volume is to see how the wealth produced in the country, has steadily gravitated from the pro- ducer to the distributor. The poison that is eating into the life of the nation is not necessarily the high cost of commodities to the consumer over the counter, but the fact that the producers, the workers in the mines, the factories, and the workshops, and their employers also, are not able to retain a sufficiently large proportion of the wealth of their labour in those industries. The products of industry have gravitated more and more to the distributive side, to banking, to insurance, and to the luxury trades, and this Bill, if it does nothing else, will be useful in assisting towards an examination of the much larger problem which I have just indicated.
In looking through the Bill the first thing one notices is its title, the Consumers' Council Bill. We were told when the Bill was introduced that it was to assist the consumers of this country, and to prevent them from being grossly overcharged. I see little reference in the Bill itself to the part the consumer will have in it, and I wish to ask the President of the Board of Trade whether the consumer has any rights under it. Is it the intention that the Consumers' Council are to receive individual complaints? Is Tom, Bill or Harry to be invited to send complaints to the Board of Trade? There is nothing in the Bill to say where complaints are to be sent. Is it proposed to establish a complaints department; and will the public be informed of what their rights are? Or is it simply camouflage to call this a Consumers' Council Bill, with the idea of attracting the votes of the man in the street by leading him to believe that he will derive some benefit under it? Is this really a Bill for the benefit of the consumer? If not, then it is altogether wrong to call it a Consumers' Council Bill: it becomes simply a Bill promoted by the Board of Trade to give them autocratic powers to do everything they like. I do not know whether the President of the Board of Trade will give us that information at the close of the Debate or tell us now, in order to guide us in our discussion. If we assume—well, I do not know what to assume. I do not know whether it is a consumers' Bill.
Take the position of a small shopkeeper under this Bill. For him it is a case of introducing or re-introducing the Star Chamber, with the penalties of the Star Chamber, with torture. If hon. Members have any knowledge of the world they will know the anxieties which beset the traders of this country at the present time in trying to get a living, and now men may come and blackmail them. They will say, "I am going to lodge a complaint against you unless you make it worth my while not to do so." There is nothing in the Bill to prevent it. If a woman wants an apple and is charged 4d. for it she may say, "Very well, I will complain of your overcharges." The consequence will be that you will have an inspector walking into the shop and asking an assistant behind the counter for information in regard to the business. According to the Bill, somebody may make a complaint against the trader, and, as far as I can make out, a representative of the Consumers Council will examine that complaint. That complaint may go into the waste paper basket and no notice may be taken of it. In another case the Commissioners may give one of their officers a written document authorising him to walk into a shop and say: "I am an officer of the Consumers Council, and I have come to investigate your business, examine your hooks and take copies of your accounts and books, and when we have gone fully into this matter, we will let you know the consequences." Can you imagine the state of mind in which that man's family will be for months to come?
I would like to ask the representative of the Board of Trade to tell us whether it is the intention that this Bill should apply to retailers all over the country. I also wish to refer to the Money Resolution. I notice on the first page of the Bill that the Consumers Council is to consist of seven members, and the Board of Trade are to have power to appoint additional members for the purpose of any investigation which the Council may institute. The financial Memorandum also states that We have heard a good deal about the necessity for economy, but I would like to ask if hon. Members below the Gangway are going to stand by and be parties to expenditure of this kind in connection with a new Department. If the Government are not willing to limit the amount to £20,000, surely those who drew up the estimate of the cost must have some idea of what expenditure is intended. Would the Government be willing to have the amount limited to £7,000 in order that the House might have some control over the expenditure. We know very little of the new Department which is going to be set up, and we should be told something about the way it is going to carry on. The House should be given some further information on this question. The country is at present overburdened with expenditure, and this proposal may very well be the last straw. Judging from our experience in the past, we know that when a new Department is set up we generally find that secretaries and undersecretaries have to be appointed and some Members of the Government have to represent the Department in the House of Commons. I certainly hope that hon. Members below the Gangway will endeavour to practice what they preach on this occasion, and insist upon having some limit to the proposed expenditure under this Bill.
A great deal has been said about the merits of this Bill, but the President of the Board of Trade has not told us how the Consumers Council is to operate. Under the Bill, the Council has absolutely autocratic power. It will have power to examine everybody right and left in every direction. They may even introduce the agent-provocateur, go to the extent of sending someone round to find somebody to put forward a complaint. At the present time, tradespeople are complaining that they cannot make both ends meet, and, notwithstanding this fact, the Board of Trade has chosen this moment to propose the establishment of a new Department which will have the power to torture the small traders of the country if the Government carry out the original idea of this Measure. We want to know what method the Government are going to adopt in the working of the Consumers Council. Will they set themselves to work making inquiries in every direction?
The President of the Board of Trade mentioned one matter with which I am concerned, and that is the oil business I think in fairness the right hon. Gentleman should recollect that last year he made inquiries with regard to the oil business, and the business with which I am connected thought it necessary to send the most minute details of the whole business to the Board of Trade. My own company sent information covering 40 or 50 pages of closely typewritten matter. So far as the oil business is concerned, I might remind the right hon. Gentleman that the Government are associated with one of the biggest oil companies, and, if they wish to lower the price, they can always do it through their own company. They have nearly a sufficient amount of oil to supply the whole of the British market, if they did not sell the oil in a better market in Belgium, France or Italy. Why do the Government not sell all their oil in this country for the benefit of the consumers? When the Consumers Council wish to lower the price of an article, they will send round a representative of the Board of Trade to various shops, and no doubt they will find that the prices vary. In that case, what is the use of the Consumers Council going to the trouble of frightening small traders out of their wits and pretending, at the same time, that they are making investigations in the interest of the consumer?
What is really at the bottom of all this business? First of all, you have the gigantic co-operative organisation competing with the small traders. The First Lord of the Admiralty makes no reply to questions concerning co-operative societies, but it is well known that they are out to get the whole retail trade of this country into their own hands. This House has to consider the interests of other people as well as co-operators, and a very large class of deserving poor traders are concerned in this matter. I would like to remind the President of the Board of Trade that an election will take place shortly at Woolwich, and it is our intention to put this question before the electors there. The electors should be asked if they want to be harassed in the way proposed by this Bill, and if they want spies to come into their shops taking copies of their books and accounts, and submitting them to the form of torture proposed under this Bill. I have no doubt as to what the reply of the electors of Woolwich will be. I hope the Conservative party will take full advantage of this attempt on the part of the Government to harass the community by the proposals contained in this Bill which are not for the benefit of the country at all but in order to establish another Department in connection with the Board of Trade. The Bill has been conceived by one of those Departments of the Board of Trade. When it was first thought of, we were told that it was in the interests of the consumers of the country; when we saw the Bill, we realised that it does not and cannot benefit the consumer. The tendency will naturally be to make people dissatisfied and to put prices up instead of lowering them. There is absolutely no justification at the present time for a Bill of this kind. The condition of trade is such that commodity prices are at their lowest, while the reduction in the cost of living shows that there is nothing much of which to complain. I cannot imagine what has induced the Government at the present juncture to bring forward the Bill. It was conceived by the Board of Trade, who have brought forward this abortion, and who were in difficulties because it was defeated last year. They found a father for this abortion in the Members below the Gangway, and I hope that to-night those hon. Members will strangle it as it deserves to be strangled.
7.0 p.m.
I would like the House to come back to the real purport of the Bill. The Bill, after all, desires the examination of the forms and processes of distribution, of the making of prices, and of the organisation of markets. Whoever may become the members of the council, they will be faced with the most cunning of experience among the middlemen with whom they will have to deal. The middlemen and the profiteers are the last people in the world who should assume the role of martyrs which the champions of the middlemen here to-night have assumed for them, an attitude which is farcical. There is nothing in this Measure or in the machinery proposed in it which would interfere in any way with honest trade. When inquisition is spoken of, I would remind the House that every colossal combine, every organisation of multiple shops, every form of trust police their policy and their affairs and police every form of money transaction and of purchase. The council, after all, would only be a commercial council, and it is unfair to speak about its action towards "the poor shopkeeper." That phrase comes very badly from the opposite side of the House, because it is the combination of capital which is wiping the shopkeepers out as fast as it can. Combination and monopolies are the crucifying inquisitioners of the small shopkeepers. If the small shopkeeper desires to sell his goods at a fair and honest profit, he cannot get any further supplies from the monopolists. Is that not intimidation and a form of roguery unexampled in the days of Claude Duval? We heard one hon. Member to-night representing the economic highwaymen of his own day, yet we are charged with the misdemeanour of trying to rob the great trading class.
I went to the great textile exhibition, and I was alarmed at what I found there. I went from stall to stall asking the price of the goods, and I found that what the producer offered to the market for 5s. was in the West End being sold for £1. The producer has to pay for his overhead charges, his machinery, his fixed charges, his rent, the deterioration of his plant, his wages, his brains, his organisation, his rates and taxes, and all he obtains is 5s., while he finds, whatever may be the processes of extortion practised by the middlemen, that the goods he produces are sold for £1 in the West End emporiums. The council has to seek a reason for the difference between those two prices and will allow for rent, rates, wages, costs, and upkeep. The council will necessarily have to enter into the fullest detail in coming to its decisions.
When I was speaking to the textile manufacturers, I pointed out to them that in Japan they have got rid of the middleman and that there are no intermediate parasitic profits. The Japanese textile factor has put his goods on his own market without any process of merchandising except that it is part and parcel of the combine. They have successfully eliminated the middleman. I do not want to hang all the middlemen at once, but that process has been going on for a long time, because every com- bine hangs a middleman. There would be no need of combines if they had not to eliminate the middleman. Surely what is good for the monopolies in industry should be good also for the community as a whole.
I want to give the House one picture of how the present system works. A market gardener takes his cart to market and the load of cabbages upon it represents to him the work of months, possibly of years, the work of the most skilful and useful workman in the world, the agricultural labourer. There is no mechanic, no factor serving the community of as much value to it as the agricultural labourer. This work has gone on for months, amid inclemencies of weather, variations of season, drought, disease, blight, and the thousand other difficulties that assail the farmer in the growing of his crops. He takes his load to Covent Garden in order to maintain his family and to pay for his land and, as he stands there with the work of years, a little fellow, about my size and as genteelly dressed as the hon. Members opposite, comes out with his book in his hand and in five minutes makes more money, twice, three times, four times, as much as this man, who has been working for months and years. With a little stroke of a pen in a book in a small cubbyhouse of a shop he makes the money—"And so the poor dog had none." The farmer is robbed. I will not say robbed, because one must be careful in this House about using the term robbery. If there is one man robbed by the middleman, it is the farmer and the labourer. The reason for our deterioration as an agricultural race and country is the existence of the parasitic middleman. What applies to market gardening applies to dairy farming, meat supplies and wheat supplies.
Although I agree that there should be elimination of the middleman, I am quite sure that no authority constituted by this House or by any law enacted by this House will be able to deal with the matter successfully for years until it really gets down to the bedrock of the method of production. The very existence of such a Consumers Council will, however, halt the processes of robbery. I have the very greatest sympathy with the small tradesman, but hon. Members must appreciate that there is in food supply the vilest, the most criminal, and the most wicked extortion and profiteering at a period when employers are calling for reductions of wages—a criminal and cowardly act on the part of the employers. I am proud to say that the producers of this country represent the most practical and skilful of the great geniuses of manufacture, but they are not protected. Unless the middleman exists no producer exists. Between producer and consumer, however, there is a camaraderie and a fealty and the work which the Council set up by this Bill will seek to perform will be to eliminate the middle factors, which destroy the glory and genius of Mother Earth as commanded by man's ingenuity and skill to supply the needs of civilisation and to give to the consumer and producer their fair and square chance under economic and fair conditions.
I hope that, as this Debate progresses, we shall not hear such statements as we have had from the hon. Member for Salford (Mr. Tillett). He seems to consider that every man engaged in the distribution of food and essential commodities is largely a parasite or a robber or engaged in a criminal and wicked extortion from the poor of this country. As a middleman and as a retailer, I strongly object to that. I want to say, on behalf of the retailers of this country, that they as honourable a class as any other in the community.
We had a speech of very different tenor from the hon. Member for Westhoughton (Mr. R. Davies). He had a very different idea of the functions of retailers and distributors, and it was very refreshing to hear him defend them. He put to the House one question, to which, perhaps, I may be excused for attempting to give an answer. That was as to whether, under this Bill, an inspector of the Consumers Council would enter a shop and question a manager or an assistant, with the result that that manager or assistant might be victimised for giving information. It happens that I have been a shop assistant and a manager, and am now employing managers and assistants, and there is no secret in the possession of my managers or assistants that I am not quite prepared for them to divulge to any inspector or to any Council that is set up. The real truth is that the shop assistants and managers of this country have no secrets that they dare not divulge, except as re- gards the amount of business done and things of that kind. With regard to prices and the way in which prices are established, there are no secrets that they dare not divulge to any inspector if they were asked. That is as regards the generality of cases. You may find an odd case; you may find a dishonest retailer or a dishonest middleman, and such a one ought to go out; but, generally speaking, I do not think that these secrets of which the hon. Member spoke really exist.
After hearing the speech of the President of the Board of Trade in introducing this Bill, I am very undecided as to what is the real intention of the Government. The whole of the right hon. Gentleman's speech was devoted to dealing with combines and monopolies and rings that fix prices, but he did not explain to us why and how this Bill is designed to deal with that matter. He dealt with the question of milk and bread, and I think he mentioned meat; and then he went on to say that a great amount of unnecessary profit was taken as between the wholesaler and the retailer, and that that was a matter which needed to be inquired into. He also mentioned the lag between wholesale and retail prices which leads me to believe that the Bill is not only designed to deal with monopolies and combines, but that in practice it may become a real source of interference with legitimate trade in this country, and may entail a great deal of hardship on individual retailers. Naturally, every Member of this House will be against any form of profiteering, and I certainly do not desire to defend it, but I am not sure that a general case has been made out that profiteering on any large scale exists, and that there is a real demand for such a Bill as this. I am not sure that the right hon. Gentleman has not over-stated the case in many ways.
It is easy to generalise on these matters, and to talk about a lag between wholesale and retail prices and about increased profits obtained, or supposed to be obtained, by retailers as compared with what took place a few years ago; but we never hear of the increased costs that the retailer or the distributor has to meet—increased rent, increased rates, increased wages, shorter hours and many another thing that is put on to the shoulders of the retailer. There are the increased services that he renders to the shopping public, and I was very pleased to hear that point put so ably from the other side of the House, because it is a fact that the shopping public to-day demand many more and greater services than they did a few years ago. I believe that generally they are quite prepared, or, at any rate, a large proportion of them are quite prepared, to pay for the services so rendered by the retailer to-day.
I understand that this Bill is put forward in the interests of consumers, and if it is put forward in the interests of consumers, I wonder why the President of the Board of Trade, in introducing the Bill, laid so much stress upon milk. I remember that, when he introduced the Bill last May, the burden of his speech then was bread and milk, but at that time we had no Agricultural Marketing Bill before the House. I understand that that Bill is going to deal with milk, and is going to do so, not in the interests of consumers only, but with a view to getting a better price for the producer, at any rate of milk, while certainly safeguarding the interests of the consumers to see that they do not pay more. If, however, the Agricultural Marketing Bill is going to deal with milk, and if inquiries are to be made under it with regard to the sale of milk and to all the trading operations concerned in the sale of milk, why do we want another Bill with a Consumers Council set up to watch the operations of a board which is going to be established by another Government Department?
What is the object of this Bill? If it is to deal with monopolies, I can support it; and if it is to inquire into the reason why prices are fixed on too high a basis, when they are controlled at all, I can support it. But if there is another reason, I shall find difficulty in supporting the Bill. I should have liked to ask the President of the Board of Trade what he really meant when, in introducing the Bill last May, he made use of these words, turning round to hon. Members on the opposite side of the House: Interruption. ] If that is the line that the Government desire to adopt, the Minister of Agriculture is a little more optimistic, because, in bringing forward his Bill, he openly says that he wants, not only to control prices, but to take on the actual marketing of the commodities concerned. I wonder whether there is any real justification for a Bill with the wide powers that this Bill contains? I want to reinforce what was said by my right hon. Friend the Member for Darwen (Sir H. Samuel). If this Bill is really a Bill aimed at monopolies and combines, why on earth did it not say so, and leave all the other matters out? There would be no difficulty then. If that is the real object, why do not the Government say so, not only by word of mouth—we get too much of the Government's intentions when Ministers are speaking—why do not they put into the Bill exactly what they desire, namely, that they want to strike a blow at combines and monopolies? If that is what they want to do, I believe that most Members of this House would back such a Bill, but I do not think there is any justification for this Bill.
I am reinforced in that opinion by the report of the Royal Commission on Food Prices. To-day, for the purpose of dealing with meat, we have one Bill which deals with cattle, with the carcases—not only with the prices at which they shall be bought, but with the actual sale of those carcases—and then we have this present Bill, which is going to deal with the sale of meat after the other Committee has finished with it. The Royal Commission on Food Prices reported that in their judgment, after going carefully into this matter of retail prices, it was impossible to control meat prices in this country. More than that, they said that the wholesale price of meat varied from day to day and from week to week to such an extent that it would be quite impossible for any committee, however constituted, to control the price of meat in this country. Definite instances were given. The Commission reported that in one particular week the wholesale price of beef varied to the extent of more than 1d. per lb., that the wholesale price of mutton varied within five days to the extent of 2d. per lb., and that the wholesale price of pork within five days also varied by 2d. per lb. With these conditions of fluctuation in the market, how can a Consumers Council fix the retail price of meat to the shopping public? If they attempt it, they will make a huge mess of it; they will upset the organisation of distribution in this country, and, while they might fix a price—which would have to be a price that would cover these fluctuations—that price would not be in the best interests of the consuming public.
The Royal Commission said another thing with regard to meat prices. They said that, after making exhaustive inquiries and after hearing all the evidence, they had come to the conclusion that the average net profit of the butchers of this country was less than ½d. per lb. Surely, ½d. per lb. is not too much? Surely, the hon. Member for North Salford has no right to call the retailers of this country criminals for extorting money that they ought not to have, when a Royal Commission reports that the average net profit is less than ½d. per lb.? The Royal Commission also said that at that time car-cases could be bought from the farmer at an average price of 6d. per lb., while the retailer was charging up to 2s. per lb. for meat to the consuming public. It seems a tremendous difference; it almost sounds like the 5s. and £1 of which we have heard to-day; but what are the facts? The Royal Commission on Food Prices reported that in their judgment there was no overcharge, for they said that only 60 per cent. of the carcase produced any profit at all, and that it was proved to them that 40 per cent. was sold at less than the actual cost price. I think we ought to be careful before we level charges of profiteering at a whole body of men who are conducting their business in an honourable manner.
This Bill deals, not only with milk and bread, which the right hon. Gentleman specially mentioned, but with other commodities about which he said very little, such as wearing apparel, clothing materials, and fuel. I should like to ask whether the Government really suppose that seven persons, none of whom, according to the Bill, must be connected with the trade or commodity about which they are making inquiries, will be capable of fixing prices on an economic basis that will be fair to the producer, the distributor and the consumer? I suggest that they cannot do it. Further, is it quite right that, over the head of this House, the President of the Board himself should be able, in certain circumstances, to make an emergency Order, even fixing the price of a commodity, for a period of two months, without inquiries being made and without going through the formalities, so that virtually, in certain circumstances, the President of the Board of Trade becomes the actual dictator with regard to that matter? Is it the intention that this Consumers Council shall fix prices right from the producer to the consumer; or is it the intention that the council shall only fix the last price, that is to say, the retailer's price to the public? If that be the idea, if you are simply going to attack the last man who touches the goods, you are not going to deal with any of these problems in a proper manner. If prices have to be fixed, the consumer must be protected against the retailer, but so must the retailer be protected against the wholesaler, and the wholesaler protected against the manufacturer. It is a very big job, in dealing with these matters, to attempt to fix prices at all.
Another question to which an answer would be useful is whether this Consumers Council, in the interests of the consuming public and the retailers, is going to fix the services that the retailer shall render in connection with the distribution of the goods that he handles. We have heard that there may be a difference of profit required of 5, 10 or 15 per cent. for the services that are rendered in the actual distribution. I ask the right hon. Gentleman whether it ought to be within the power of the Consumers Council to say to consumers that the price must be elastic so that the services demanded by them can be rendered. Why not? You have the answer from that side of the House again. The hon. Member for Westhoughton said the distributing trade is the largest industry in the country, employing 1,750,000 employés, and in this time of depression ought we to take steps to throw another body of men out of work, or ought we to continue on the same lines and allow them to retain the employment that the distributive trades are giving them? The Minister says that is not his intention. I wish I was convinced that it is not his intention. I wish he really did intend to deal with monopolies only, but we have Clause 5 amended so that it now reads that the council, after all the investigations have been made, must report to the Minister that conditions exist which restrict the free play of competition. Why make the distributing trades and industries of all sorts open to the inspection of books and inspectors walking into shops making all sorts of inquiries unless you find that monopoly exists? If the Bill is aimed only at monopolies, will the Minister, instead of telling us so, insert it at the beginning of the work of the council? The right place where that ought to be inserted is not in Clause 5, although it is necessary there, but in Clause 2, before the investigation starts. If words were inserted there conveying to the average mind that the council is aiming at dealing with monopolies and combines and rings that fix prices, and that only, much of the objection to the Bill on the part of the distributing trades would be gone, and the objection of the smaller traders would be gone, because as distributors we welcome inquiry into any sort of monopoly. I ask the Minister to be very explicit in that matter, and to give us a direct answer whether he will in Committee insert in the appropriate place, in Clause 2, words that will convey that he does not intend to interfere with all sorts of distributors in all parts of the country.
I hope also that the Minister is going to insert somewhere that he recognises that distributors are serving a purpose. I hope he is going to insert a Clause that they will not be open to the supervision of inspectors appointed by a Government Department and certainly, wherever an inquiry is held with regard to the sale of any particular commodity, in common fairness to the people handling that commodity, if you cannot put someone on the committee who really understands it, every opportunity must be given so that the full case for the distributor can be laid before the committee before any decision is come to. I have very grave doubts about the Bill. As a distributor I do not like it. I see no necessity for it outside monopoly, and, if the Minister will let us know that the Bill is only aimed in that direction, he will take away a good deal of my objection, but, again, I am bound to say that I have my doubts. The Bill was introduced last May. There has been plenty of time to make it watertight, but nothing has been done except this in Clause 5. I strongly object, as a distributor and as a retailer, to any inquiry being made into my business unless there is some foundation for it. The foundation ought to be that the distributors are charging an excessive price, and the onus ought not to be on the distributor to prove that he is an honest man conducting an honest, straightforward business.
In giving general support to the Bill, frankly I have some doubt whether it will achieve all that we hope and whether it will not be as mischievous as hon. Members opposite make it out to be. The hon. Member who has just spoken was very much concerned as to what might happen to the small shopkeepers. I also hope the Bill will not have the effect of persecuting the small shopkeeper. On the other hand, I am convinced that it is not the small shopkeeper with whom hon. Members opposite are so much concerned. As far as I am aware, they do not draw dividends on their investments from such sources as the small shopkeeper. On the contrary, the investing public draw their dividends rather from the big monopolies and trusts and those amalgamations that masquerade under the name of associated companies. The Bill is designed, perhaps, with the object of discovering how it is that there is such an enormous spread over in some cases between wholesale and retail prices of commodities. I have even heard hon. Members opposite agree that there is an undue gap between the two. If the machinery of the Bill will enable us to discover exactly how that can be crossed and how it is that retail prices of commodities in many instances are excessively high, and how the construction of that excessively high price comes about, it will undoubtedly perform a good service.
There is another objective which I have in my mind and to which the Minister himself made some allusion, and that is that the investigation of how these excessive prices have come into existence may give the general consuming public a greater and a more exact knowledge of the manner in which they come to be fleeced. I am hoping that the findings of the investigation committee will produce a public opinion which will enable us—I refer more especially to my own party, because I do not expect it to be done to the party opposite—to get public opinion on our side to the extent that if even with machinery like this, we find it impossible to control excessive prices, it will demand that those industries that charge them shall be publicly owned and controlled.
I think there is something to be said in another direction. In many instances, British industries are suffering for their past sins. Had there been, 10, 15 or 20 years ago, machinery in existence which permitted of a public inquiry into the manner in which prices are constructed, some of our industries would not, perhaps, be so overloaded with watered capital as they are. I well remember the inception of the artificial silk industry and, as it progressed, after the first two or three years, I remember bonus after bonus being given away until the capital was increased without a single penny of subscription from the general public but by mere paper issues to shareholders, by three or four times. That becomes finally a disability to the competitive power of the concern. It is just possible that, had they in the first instance sold their commodities at the prices at which it would have been possible to sell them, they might not have encouraged other nations to come into the business and compete against them, enticed by the enormous profits which they saw the British industry taking out of the consumers.
I can enumerate at least one proprietary article—I am prepared to give the name in confidence—upon which the retailer is compelled to make a profit of 62½ per cent. I imagine that hon. Members opposite would not contest that that is an undue profit to be made against the consumer. I also remember that the present capital of the Maypole Dairy Company does not consist in the main of money subscribed by shareholders but of profits made out of consumers, the capital having been watered three or four times over until at present it represents 200 or 300 per cent. increase on the original capital. Where the consumer has been fleeced to that extent, there is at least some justification for governmental investigation as to how these enormous profits have been made.
We have some justification for the Bill also in view of the committees of inquiry which have already reported on the question of the spread-over between wholesale and retail prices. May I quote from the Linlithgow Committee?
In Sub-section (1) of Clause 3 my right hon. Friend provides the means for taking evidence. I am not quite clear whether under the provision of the Clause he intends to summon employés before the Consumers Council. I am rather keen upon this point. I am not very trustful of the kind of justice that might be meted out to an employé who had given evidence before the Council which might be considered seriously to damage his employer's business. It does not matter whether a man is compelled legally to give evidence, there is a natural resentment left behind if he has done any damage to the business of his employer. I should like to know in what way the Minister proposes to make certain that the employé who is called upon to give evidence shall be protected from any ill consequences. As far as the average consumers are concerned, they could not do better than become members of co-operative societies which are the very best kind of consumers councils they are likely to get.
They subscribe to the political fund.
And a very good thing, too. There is no reason why they should not subscribe to the political fund, just as the Federation of British Industries subscribe to the right hon. Gentleman's political fund. There is as much justification for the pence of the working class in the co-operative movement being employed in political action as there is for the pounds, or five pound notes, of the Federation of British Industries in the political fund of the party opposite. I am much concerned about the point of protecting employés who are to give evidence before the Consumers Council.
I hope that the Minister will strengthen the Bill so that the attack upon the combines who decide the excessive prices at which retailers must sell, even though they are willing to sell at lower prices, may be successful in causing a reduction of prices. If we can get something under the Bill to enable us to get prices reduced, if we can deal with the spread-over between the wholesale price and the retail price, and so reduce the general level of the prices of commodities, the spending power of the working classes will be increased, and there will be a greater demand for goods, and to that extent, at all events, the Consumers Council will be of some use.
This has been rather a unique Debate up to the present, as so many of the speakers have such different ideas as to what is in the Bill and what the Bill will do. It started with the President of the Board of Trade, who talked at some length on the question of the lag between the retail prices and the wholesale prices of foodstuffs and how it affected the cost of living. He seemed to think that the Bill would assist in bringing about a diminution of that lag. Shortly afterwards we had the right hon. Gentleman the Member for Darwen (Sir H. Samuel), speaking on behalf, I suppose, of the Liberal party. He said that, of course, it was a very nice little Bill and did not mean what was in it at all; it was really only to deal with monopolies, and was it not a pity that the President of the Board of Trade had not put that into the Bill? As a matter of fact, it does not do anything of the kind. It deals with a vast variety of subjects, and if the President of the Board of Trade had really meant to deal with monopolies, he would have presented a Bill for that purpose to the House. Closely following him we had the hon. Gentleman the Member for North Salford (Mr. Tillett), who seemed to think that the Bill would do away with the middlemen. There, again, I do not know of any part of this Bill which would have that effect. Finally, we had the hon. Gentleman the Member for South Hammersmith (Mr. Chater), who thought it would deal, apparently, with watered capital, particularly as it affected the artificial silk industry. I would ask the hon. Gentleman to look through the Bill and try to find a single provision which will have, or can have, the slightest effect upon the question of over-capitalisation or otherwise of industrial undertakings.
I want to draw the attention of the House to the extraordinary powers which are taken by the Board of Trade, and particularly by the President of the Board of Trade, under the provisions of the Bill. I think that Mondays are particularly unfortunate in this House, as last Monday we had the whole of London transport put under the sole control of the Minister of Transport, and this Monday, to quote the words of the Bill, "every article of common use," is to have very much the same treatment. I do not believe that the House realises how drastic are the powers which the Minister proposes to take under this Bill. The hon. Member for Holland- with-Boston (Mr. Blindell) quoted the President of the Board of Trade as saying in the Debate on 8th May last year:
The second point with which I wish to deal has regard to the control of this House. There are some very extraordinary provisions in the Bill. When the President of the Board of Trade has decided upon an investigation into an article of common use, or of any of the various things mentioned in the Bill, he has to come to the House and obtain an affirmative Resolution. That is merely to investigate. When he comes to make an Order which definitely controls a particular commodity, and is one of the most drastic powers which has ever been given by the House to a Minister, he does not require an affirmative approval of this House; he merely has to lay the Order, and what is called the negative Resolution procedure takes place. Under emergency regulations, he needs to have no Resolution in this House. In fact, the Minister can make an emergency Order which immediately comes into effect governing the price of some commodity which may affect thousands of people throughout the country, and there is no control by Parliament. The Minister might make an Order, and the House being on the eve of the long Recess during the summer, there would absolutely be no redress whatever to people who might be most unfairly treated. Complete control is taken out of the hands of this House. That is a point which will have to be dealt with very drastically when the Bill reaches Committee.
Hear, hear!
I am glad that at least I have the support of one hon. Member opposite.
I wish you had.
There is another extraordinary point connected with this Bill. The Bill consists of about eight pages of print, and no less than four fresh offences are created in respect of which a man may either be fined or sent to prison. If he refuses to supply information or permit access to his books, he can be punished, though I cannot discover what the sentence may be. Other offences are more specific. For neglecting or refusing to make a declaration of secrecy there is a penalty of £50 or three months' imprisonment. The offence of disclosing information is very expensive, namely, £100, or two years' imprisonment. The cheapest offence of all is that of contravening an Order made by the Board. If the President of the Board of Trade makes an Order fixing a price and you do not agree with it, and sell your article at the old price, you are fined £5, rising to £10 for the second offence or three months' imprisonment. It is absurd to pass legislation through this House which creates a host of new offences, no fewer than four of which are of a most niggardly kind and which will, if the Minister uses these powers, very likely fill the police courts and the law courts of the country.
How is this council going to proceed? It has been generally assumed by many speakers that the council are going to deal with the retailer, but if the council start taking action with regard to fixing prices, we shall have to deal with all three—the retailer, the middleman and the manufacturer or the producer. Otherwise, it will be impossible. One can visualise the Minister making an Order fixing retail prices of a particular commodity. What will happen to the retailer if the producer or the wholesaler puts up his price? He might have no profit at all or he might by law or by Order of the Minister have to sell at a loss. When they come to fix a price for the three I think the council will find that such a scheme is impracticable.
8.0 p.m.
In introducing his scheme, the President of the Board of Trade was dealing entirely with our own producers and our own retailers. How is he going to deal with foreign imports? He cannot tell the foreigner at what price he is to sell. We always hear from the President of the Board of Trade that there are a great many things produced outside this country which we cannot produce here. Unless he is going to take some power of dealing with the price of foreign imports as well as the price of our own goods, I cannot see how the Bill is to work. He talks about the control of wearing apparel. We had experience of that during the War in what were called standard suits. How on earth are you going to fix the price of wearing apparel? Is a suit made in Bond Street and Savile Row be charged exactly the same as one made in Mile End? If so, the whole thing becomes absurd. Yet those prices will have to be fixed if there is any sense in the words proposed in the Bill.
One hon. Member spoke about the excessive profits charged in regard to certain classes of goods, but I would point out that those particular goods entail a great deal of risk. The hon. Member dealt with certain goods sold by chemists, and the profits made. There are certain articles sold by chemists which only last for a very short time because they are things that will not keep. In those circumstances those particular things are bound to be rather expensive. The tradesman has to take a bigger profit, otherwise it would not be worth while selling them. When these points come up in relation to a chemist or any other retailer they cannot be dealt with by a body such as is proposed in this Bill. I cannot do better than sum up my objections to the Bill in a resolution which was passed by the London Chamber of Commerce when this Bill was before the House last year:
I have listened with close attention to the Debate and nothing that I have heard has shaken my belief that this legislation will be very useful. The Bill has been criticised as absurd because it does not make clear the object of the Government. I wish every Bill that I received was as clear as this one. It seems to me to set forth clearly and concisely precisely what is aimed at by the Government. I do not approach this question with any feeling of hostility to the retail trader. There are people who criticise and attack the retail trader for rapacity and greed in his dealings with the consumer. I do not adopt that attitude. I have very much sympathy with the retail trader in the position in which he is placed. He is the victim of an economic system which I think may be summed up colloquially in the expression: consumer does not suffer unduly at the hands of the tradesman. In addition to the tradesman there has of recent years developed the big trust, which now does on a very large scale what used to be done by the individual traders. These trusts have grown until we lie helpless at their feet. The object of the Bill is to protect us from the big trust which can raise their prices as they please, while leaving the consumer helpless and powerless before them. I believe that with the passing of this Bill the consumer will get a real protection from these large trusts, which fill with dismay those who contemplate their growth in the future.
We must also remember the nation as a whole. It is very important that the nation should have an abundant supply of food. A very large number of people in this country are underfed and a very large number of children suffer from lack of milk and nourishing foods. We are told that out of every four children that go to school one is suffering from some ailment that needs attention. The high prices of food, the increase in the prices of food and the maintenance of the prices of food are detrimental to the health of the nation as a whole. An enormous number of children have to be fed by the nation. During the years 1925–26 13,000,000 meals were provided by the nation for the children of the poor. During that period 118,000 children were fed at the expense of the nation. It is therefore highly important, with that duty resting upon the nation and with the claims of the children for nourishing and inexpensive food that the price of food should be kept at the lowest possible figure.
I should like to deal with some of the high prices of commodities. Take men's clothing. Men do not have personal experience, perhaps, of the prices of meat, butter, etc., supplied to their families, because that part of domestic economy is usually dealt with by others. Moreover, men are constantly dining in restaurants and cafes, so that the question of food in the home does not come so close to them, but the price of clothing does come home very close to a man, because he buys a suit and pays the price himself. Although there has been a drop in the price of clothing within the last few months I think I am right in saying that we pay for a suit of clothes about four times the amount that was paid in pre-War days for the same quality of cloth. A suit of clothes that could be bought in pre-War days for three or four guineas now costs 10 or 12 guineas. There is no justification for that huge price. Even if the price was only three times as much as it was in pre-War days, why should we pay that excessive amount?
I have questioned men who supply clothes, and there is always one reply: "Look how wages have gone up." Wages are blamed for many things for which they ought not to be blamed. In the tailoring trade wages have about doubled since the War, but that increase in wages does not explain the increase in the price of clothes. I have looked into the matter and I find that the cloth manufacturer has not increased his profits much since the War. The people who are responsible for making clothes so dear are the cloth merchant, who buys from the manufacturer and adds 100 per cent. to the price of the cloth which he supplies to the tailor, as against 50 per cent. before the War. Therefore, he gets double the profit. The tailor has increased his price by 100 per cent., as against 50 per cent. pre-War. In those figures we have an explanation of the increased price of clothes. Is there any hon. Member of this House who would say that that is justified? Is there any hon. Member who would not immediately admit that the profits taken by the cloth merchant and the tailor are too high? There is no question of a monopoly. It is said that if the Bill dealt with monopolies, that is all that is wanted. Between the tailors and the cloth merchants there is simply an understanding. There is no written agreement but an understanding that prices should be kept up. Why should I be compelled to pay three or four times the price that I paid in pre-War days? I rejoice to think that there will soon be a body of men whose duty it will be to reduce those extortionate figures.
Take the question of meat. One hon. Member opposite said something about meat. My information on that subject is very different from his. The meat trade in this country is largely controlled by the Vestey Trust. They have over 2,000 retail meat shops, and branches and freezing shops in Argentina and elsewhere. In 1919 Lord Vestey told the Royal Commission on Income Tax that it would be worth his while to pay £100,000 a year in taxation in order to operate in this country. In 1929 the Food Council stated that in the case of private traders whose books they examined that the net profit showed 51.1 per cent. on the capital. The Food Council, and the Royal Commission on Food Prices, agreed that the financial position of retail butchers had improved out of all proportion with the increase in the general cost of living, and I should say that of all classes of retail traders the butcher has done best out of the public.
Reference has been made to variations in prices. They are often quite unnecessary. Periodically things are put up in price in order to get a little more out of the public. One knows that before Christmas time prices often increase quite unnecessarily. It is known that the public will stand an increase at that time; and the increase is made. It will be the duty of the Food Council to find out how far these increases are justified, and where they are unjustifiable to put an end to them. I have other figures here with regard to milk, about which a good deal has been said. The United Dairies Company very largely controls the milk supply in London. They have a large number of shops, and from time to time have bought up subsidiary companies, whose names have been left over the shops in order to give the public the Impression that the old firm is still in possession of the business. Within recent times the United Dairies Company has bought up the Premier Dairies, Curtis and Dumbrill, Edward Higgs and Company, the Welford Dairies and the Belgravia Dairy Company, and I have figures showing what large profits are being made by the milk trade.
There is another trade, not mentioned in the Bill but which I hope will be included among the objects controlled by this Measure, and that is things supplied by druggists. There is no class of article supplied to the public on which more unjustifiable profits are made than some articles supplied by druggists, and I should like to know whether the Consumers Council will consider the prices of such things as Elimans Embrocation, camphorated chalk, and soda-mint, for which excessive prices are charged by chemists. [An HON. MEMBER: "Cosmetics."] I will include cosmetics as well. I have always regarded it as a good result of the establishment of Wool-worth Stores in London that, although they are an American company, they have done a great deal to bring down the prices of the articles in which they trade, and have given the public an idea of the enormous profits made by the ordinary trader. One hon. Member has said that chemists have to make these charges because some things will not keep. The Consumers Council will deal with that. The more I look at this Bill and consider it the more thankful I am that it has at last been introduced. Some hon. Members have objected to the inquiries which will be necessary. May I quote what was said by Lord Eldon, a celebrated Lord Chancellor of about 100 years ago:
I have listened with interest to the hon. Member's criticism of butchers and other trades, but the evidence in support of his contention is not very convincing. It would have been more advantageous in helping the House to arrive at a decision if we had had more direct evidence of the evils which have to be remedied.
None so blind as those who will not see.
So far as the butchers are concerned, speaking from memory, I believe that the Food Council found that their average earnings were about £300 or £400 a year, which is not really excessive for a man who is in a fair way of business, and, at any rate, is less than the figure of £500 which the Socialists say we may all earn without incurring their displeasure. I am surprised that the President of the Board of Trade has found it necessary to issue an exhumation order fox the Bill which died upstairs last summer. Many of us were present at the decease. It was a sickly child at the start, and its organic defects soon led to its early departure.
But the results have been grave.
I do not see the relevancy of the observation. To justify a Bill which is going to be a very drastic interference with all our industrial activities it is surely necessary to have more evidence produced than we have had to-day, or at any other time. The speech of the President of the Board of Trade was the same old story, the lag between the producers' price and the retailers' price. What evidence did he produce? He abandoned cod and haddock, and went on to milk, but it seemed to me that he was guilty of a certain amount of unfairness in regard to his charges against the United Dairies Company. The Report of the Food Council on Milk Prices made certain charges against them. In the first place it was said that it was a monopoly. As a matter of fact, the United Dairies Company deals with about 12 per cent. of the milk supply of the country. It operates almost entirely in London, where there are at least 2,000 independent milk dealers and also four large co-operative societies, and three out of four of these co-operative societies charged the same price for milk as the United Dairies Company. That was in 1929, but last year all four charged the same price. If the United Dairies are profiteering it is marvellous that these co-operative societies do not undercut the price and collar the milk trade. The President of the Board of Trade is like Don Quixote. If he does not tilt at the windmills he dashes into the milk churns.
I will not touch upon oil, coal, and iron, but may I say that the Government in the production of oil through the company in which they hold shares can compete most effectively with the oil trading concerns operating in this country. Then in regard to coal, I believe that the report associated with the name of the right hon. Member for Darwen (Sir H. Samuel) did not make any particularly grave attacks upon coal factors because of the prices they were charging, and if I remember rightly the profits being made by the co-operative societies were even larger. There is one question I would put to the Parliamentary Secretary to the Board of Trade: Can he give us information as to the retailers' costs, the taxation that falls upon them, the cost of transport, high wages and so forth, and particularly the high standard of the public demand? I know that he will say, "That is precisely what we want to find out." But why give him this roving commission? Why should be produce a Bill that will put every trade in the country to the expense of furnishing him with information merely because of a case that is based on the barest suspicion, a case in which no grand jury would bring in a true bill?
It has been the commonest thing throughout the ages to make allegations of profiteering, but there is often nothing behind it but the prejudice of ignorance. The President of the Board of Trade cannot really believe that the Bill will do any good. Has the fixing of prices ever been a success at any time? It has been tried over and over again. It was tried by the English Kings; it was tried in the days of Athens and by one or two Roman Emperors, by Diocletian I believe. Judging by the pictures on coins there is some facial resemblance between the President of the Board of Trade and some of the Roman Emperors, but whether Marcus Aurelius or Nero I cannot tell. The right hon. Gentleman cannot find a single precedent where price fixing has been of any value at all. Economically the case against him is crushing. There is not an economist who would support price fixing.
It is well known that in all these price-fixing arrangements the maximum tends to become the minimum. Too high a maximum is an unjustifiable bonus to the inefficient retailer, and if the price is fixed too low you drive the inefficient man out of business. It is bad enough to be driven out of business by inefficiency, but worse still to be driven out by the Government. You may even fix a price so low as to drive the goods out of the market. It would be interesting to know how the right hon. Gentleman expects the Consumers Council to fix the right price. It is a most intricate problem. Prices are arrived at by supply and demand. How seven persons who are unacquainted with the intricate interchange of goods can be expected to fix a price that will be satisfactory, even for a short time, passes my comprehension. As to the fluctuations of price that are inevitable in all trading concerns, what is to happen if a price is fixed and the producers put up their prices or there is a shortage of raw material due to the season and so forth? Is the Consumers. Council to be called together every week to adjust prices again?
I think the right hon. Gentleman's defence will be that the price is fixed only in terrorem and that he wants this, bogey at the back of the Bill in case it is needed. I remember that in the Debate on the last Bill the Parliamentary Secretary to the Board of Trade stated that the power to deal with prices was the merit of the Bill and was the central point of the Bill. If that is the case now, the Bill becomes more objectionable than ever. It is a very objectionable practice, surely, to put into a Bill drastic powers for price fixing, not with the intention of using them, but as something that, as it were, can be rattled in the scabbard. The President of the Board of Trade, in explaining the Bill, fills Members with confidence by his genial and academic way. He says in effect: "You trust me. It is true that, according to the Bill, the council or the Board of Trade may abuse this power, but so long as I am there I shall see that they do not." The President poses as the honest broker between bad Acts of Parliament and the general public.
As regards the small shopkeeper, I am not satisfied that he is going to be fully protected from the results of the reports of the Consumers Council. Suppose that two bakers in a village agree not to undercut each other, just as the coal-owners are now doing. Are they to come within the ambit of the Bill? That would be restricting competition. Suppose that conditions exist for restricting competition and that the small shopkeepers are in no way responsible—there is the case of branded articles—and suppose that a shopkeeper has laid in a large stock of these articles, that then the combine producing the article is attacked by the council, and the Board of Trade issues an order that the article must be sold at a lower price. Is the shopkeeper to be protected as regards his stock? Is an expert to be able to go to that shop- keeper and say, "You have so-and-so's soap here. You are selling it at too high a price. You must reduce the price, but there is no remedy for your loss. The fine of £5 provided in the Bill would be of no importance to a big corporation, but would be a very big matter to a small man. It is obvious that the small shopkeeper is very much within the ambit of the Bill.
That the author of the Coal Mines Act should be the author of this Bill is remarkable. It is remarkable, too, that he should have as a colleague the Minister of Agriculture, who is responsible for the Marketing Bill. The Bill should contain some provision for imposing a penalty on the Minister of Agriculture for increasing the price of eggs. We shall have the Consumers Council coming along and complaining because the price has increased. The Marketing Bill surely restricts the free play of competition. The President of the Board of Trade has urged combination in the coal trade. He is paying one man £7,000 a year to promote such combinations and now he proposes to pay another man a salary to discourage combinations. He wants combinations in cotton and iron and coal, and in this Bill he is against combination. I do not think that the right hon. Gentleman with his historical and economical knowledge can be a believer in this Bill, and one looks round to find the "hidden hand" responsible for a Bill, which the right hon, Gentleman, I imagine, knows will be futile. When I heard encomiums showered on this Bill by members of co-operative societies, I thought that that indicated where the "hidden hand" was to be found. Those societies are naturally all out to get trade and they think that this is another Measure to harass the shopkeeper and to drive him out of business to their advantage, and I am afraid that it is their pressure which has forced the President of the Board of Trade to produce a Bill of this kind.
In these days we ought to ask ourselves how far is a Bill like this going to help employment. We are in a great industrial crisis but we are spending our time discussing, first, a Trade Disputes Bill, then a Representation of the People Bill and finally, this Bill, when we ought to be bending all our energies and intelligence to devising and discussing Measures for the improvement of em- ployment and industry. One of my great grievances against the Bill is that it does nothing to help in that way. The Government are so helpless and so hopeless in this crisis that their only device is to provide us with Bills of this kind to give Parliament something to talk about in the hope that eventually the clouds will blow over and the times will become easier for them. It is a waste of time at this crisis to discuss a Bill which will never become an Act of Parliament and which, as I have said, merely provides something for us to talk about and nothing more.
The hon. Member who has entertained us so happily for the last few moments thought he had detected the "hidden hand" which had pushed forward the President of the Board of Trade in connection with this Bill. He thought he had found that hidden hand in the influence of the co-operative societies. I am unable to share that view. I think that, clearly, it is important that the State should equip itself with power to protect the wages of the workers when those wages are being expended on the commodities by which the workers live. If it is important to protect wage standards, it is equally important to ensure that the spending power of wages is not diminished by improper profiteering or by the attempt of vested interests to perpetuate inefficient methods of distribution. I was rather pleased to hear the hon. Member for Lancaster (Mr. Ramsbotham) tilt at the co-operative societies because I happen to have here the report of the Samuel Commission and I wish to give the House a quotation from that part of the report which deals with the distribution of coal. That committee was not composed of members who were specially favourable to the co-operative societies. On the contrary, I imagine that their bias, if any, was rather against those societies. Their finding with regard to the coal situation was quite different from the inference to be drawn from the hon. Member's observations. I quote from the report: live and he will probably also tell you that you have been talking to the biggest liar in Lincolnshire."
I do not know whether the profits made by retail traders are on the scale suggested by my hon. Friend the Member for Lichfield, but I should like to locate the place which he mentioned. However that may be, there is justification for equipping the State with the general powers proposed in this Bill. In a situation such as now exists in which 80 per cent. of the total volume of business is in the hands of trusts and combines, it is essential that the public should be protected. Free competition is largely disappearing from certain branches of trade. We are going to have developed a system in which price-regulation and price-fixing will come into being, in so far as complete control of the market can be secured, but that price-fixing and price-maintenance will, if undertaken by combines and trusts, be entirely for the purpose of serving the interests of those who control those concerns, and with wringing from the public the greatest possible amount of tribute that private vested interests can secure, whereas, on the other hand, if the State is equipped with the powers proposed in this Bill, if there is unwarrantable exploitation by the vested interests, the State will be able to step in and put an end to it.
I do not share the view, expressed from the other side, that this Bill will be a menace to the small trader. On the contrary, I think it will help the small trader in the struggle which he now has to carry on against the very great forces arrayed against him. The development of the co-operative societies on the one hand and the great trusts and combines on the other is brought about by economic forces which no individuals can resist or alter. The small trader may perhaps, to some extent, be able to perpetuate his function where there is no economic justification for it. There are, fortunately, some areas of distribution where there is still a strong economic justification for the individual trader, and there is nothing in this Bill which will damage him in that respect, but in other directions these forces which are marching on will go on independent of whether the House passes this Bill or not; and it is not so much the co-operative societies which are the worst enemies of the small trader as those gigantic trusts and combines which are filling the cities of Great Britain with company shops, making our main streets a procession of multiple shops, and steadily squeezing out the small trader who existed a generation or two ago.
It is the great multiple concerns which come in and buy up the leases and the most expensive sites, which are able to expend a tremendous amount of capital on advertising, which are the worst enemies that the small private trader has to face. If the power which is contained in Clause 2 of this Bill is wisely and intelligently used by the Consumers Council, then it seems to me that the small private trader has nothing to fear, because he is not the person who is engaged in profiteering and in charging unreasonable prices to the public. Therefore, if the effect of this Bill is to strengthen the organisations of small traders, in order that by combination they can the better deal with the competitive circumstances which they have to face, it will in fact be some help and a measure of protection to them in the fight which they have to carry on, because I assume that all reasonable allowance for distributive charges and wages will be borne in mind whenever prices are fixed for commodities under the powers of this Bill.
I would like to ask the President of the Board of Trade if he would consider the provisions of Clause 3, and particularly that part of the Clause which deals with the powers conferred upon the Consumers Council to require evidence and information from various persons, to summon them, and to examine them upon oath. I must confess that, in spite of the speech of my right hon. Friend to-day, I have some doubts as to whether the provisions of this Clause as it stands will adequately protect the interests of managers and assistants, and particularly those who are in the service of the great food combines. Many of us know that conditions in the shops operated by these combines are far from satisfactory. It is true that enormous profits are being made by many of these concerns, and that the distribution of very large dividends and bonus shares has been going on, but that has been combined with low wages and unnecessarily long hours of labour, and unfortunately, with the surplus of some 220,000 distributive workers who are now unemployed, men who are in employment have to be very careful what they do, as they can be so easily replaced.
In view of the difficulty that is experienced by managers and employés of multiple concerns in getting other employment, if they lose employment with a particular concern, which controls thousands of shops and whose associated companies, perhaps, control many thousands of shops which are run under the names of other companies, it is a great temptation to these employés to be exceedingly careful in dealing with Government officials. I have been sitting, in association with other hon. Members in this House, on a Select Committee which has been conducting an exhaustive inquiry into the conditions existing in the distributive trades, from rather a different point of view than that which we are discussing to-night. We have had evidence produced there of the fact that in relation to that inquiry, and to the inquiries that Home Office inspectors were conducting as a result of that committee's investigations, a letter was sent out from the head office of one of the best known of these great food trusts, instructing the local manager to refer any Home Office officials or any investigators to the head office of their company, not to give them any information locally, and to instruct the members of the staff that they also were to reply, if questions were put to them, that the information would be given by the head office of the company concerned.
I put that forward as an indication of the kind of pressure that may very well be put upon employés; and in inquiries in connection with investigations of the kind that would be conducted by the Consumers Council the evidence of the employés of multiple concerns would be of very great value. I want to ask my right hon. Friend if, between now and the Committee stage, he will sympathetically consider some tightening up of this protection, in order that when the State does call upon a person to give evidence in the interests of the community, that individual shall not be victimised, and, perhaps, in the circumstances that I have named, be unemployed, if he is a middle-aged man, for the rest of his life. I hope that my right hon. Friend will pay serious attention to these points.
I oppose this Bill because it embodies the worst vices of State control and will be detrimental both to traders and consumers. It is said that a cat has nine lives. Some of us have watched with interest the various escapes which the Government have had, but we thought that at any rate a kitten was not so tenacious as a cat, and when this particular offspring was disposed of last year we hoped we had seen the last of it; but here it is back again no better for its escape. It contains almost all the old offensive features. The case for taking some action is based on the general fall of price levels and the statement, which I think has been substantiated, that that fall has not been fully reflected in retail prices. Hon. Members on the other side cannot have carefully read the Opposition Amendment, or they would not say that we in this party simply want to sit still and do nothing. If they read the Amendment, they will see that we are prepared where necessary to give an authoritative and independent tribunal adequate powers of investigation on prices of articles of food for general consumption and other cases that demand it. We agree that there may be a case for such investigation. We in this party are just as much opposed to profiteering as any party in the House. [ Interruption. ] I anticipated an interruption here. We took the initiative and appointed the Food Council in 1925. The last Socialist Government in 1924 took no such steps.
Who made the profits during the War?
9.0 p.m.
The proof that we were prepared to take action was the fact that we formed that council. If a case is made out for further powers of investigation, we would be prepared to consider any such proposal as the Government might put forward, but we claim that this Bill goes far beyond anything of that kind, and that on account of its nature, it would add to unemployment, and by its price fixing measures would be more likely to cause a rise in the cost of living than a fall. The very title of the Bill is a contradiction in terms. A council should be a place where people meet together with all the various interests represented, but this is called a Consumers Council, which suggests that only consumers will be represented. It would be more valuable if it had on it representatives of the traders to bring further experience in these matters. My second objection to the Bill is the cost. Hon. Members may think that the cost will be relatively small, but only a few weeks after the Chancellor of the Exchequer—I take this opportunity of saying we are all glad to hear that he is so much better—only a few weeks after he issued what was probably the gravest warning that any Chancellor has issued in this House as to the financial position of the country, we find on the face of this Bill, in the Memorandum, a bland announcement that it is difficult to estimate the cost likely to be entailed by its provisions. The two things do not go very well together. It will be said that it is only a matter of £20,000 or so, but it may amount to considerably more than that. I remember the Chancellor saying that one straw more on the back of industry might be sufficient to break it. My third objection is that arbitrary powers are to be given to the President of the Board of Trade, and that there is no effective provision for appeal. Both Houses of Parliament have to approve an order, but in the meantime it will be operative, and considerable harm may be done and dislocation of trade may result. It is wholly undesirable that an executive officer should be given what are really judicial duties. The President of the Board of Trade on more than one occasion has charmed the House by his moderation, but Presidents of the Board of Trade change, and it is not wise to entrust a Minister with duties of this kind.
My fourth objection is that the scope of the activities of this council is very wide and indefinite. We do not know over what range they may roam. The right hon. Gentleman said that the supervision of this council would cover over half of the trade of this country. Fuel appears prominently among the articles that will come under supervision, and possibly the reason for the introduction of the Bill is that the President of the Board of Trade has taken fright at that monster of his own creation, the Coal Mines Act. The wide scope and indefinite nature of the work of the council will be sufficient to cause distrust, alarm and uncertainty over a large part of the country, and that will not make for continuous or good employment.
The real objection to the Bill is the price fixing provisions. [ Laughter. ] Hon. Members laugh, but I will bring to bear a considerable body of opinion against this part of the Bill. When the Bill was last before Parliament, the opinion of chambers of commerce all over the country was taken, and an overwhelming adverse opinion was given. I am sorry that my hon. Friend the Member for West Derby (Sir J. Sandeman Allen) is not here to-night; he has a long experience of chambers of commerce, and was going to speak on their attitude to the Bill. When the opinion of the chambers of commerce was taken, they were all against the Bill because they declared that it would have an adverse effect on all classes of the community. I will read the resolution which was passed by the Council of British Chambers of Commerce, which links together all the chambers in the country. Meeting in London last May, the council passed this resolution: rather than lowered. We had price-fixing arrangements during the War, and experience then showed that in almost every case the price of a commodity centred round the maximum which had been fixed.
What special knowledge of the fluctuations of markets will this body of seven men and women have which will enable them to fix prices successfully? We may get seven very wise people, but I do not see how we can endow them with the special qualifications and judgment necessary to deal with what is, after all, a difficult technical matter. Several alternatives present themselves when we consider what may happen in practice. If they make a bad shot, and fix prices too high, there will be a rise in the cost of living rather than a reduction, and in that case the Bill will have done no good. If they happen to hit upon the right price, of course it will be all right, but I submit that they will find it very difficult to do that in varying conditions. On the other hand, they may fix the price too low, making it less than the economic price at which a trader can sell and make a profit out of the transaction.
That is what you are afraid of.
If the hon. Member will listen he will probably follow my argument better. If the price is fixed too low and the trader cannot sell profitably, he will have to go out of business, and perhaps that is what the hon. Member wants. The second course the trader can take is to defy the law and pay the fine. The third course open to him is not to sell or stock the commodity. This third course is the one that he will doubtless choose, and therefore in many areas of the country it will be impossible to obtain the commodity for which a price is fixed. Who will be the worse off in that case? The working people whom hon. Members opposite affect to represent, because they will not be able to buy the articles across the counter.
The only argument used by the President of the Board of Trade which Impressed me was his suggestion that the powers under the Bill would probably not be used to any great extent. It would be a weapon with which to threaten people. He said "Give me this elephant gun with which to frighten traders, and I promise not to let it off very often; the knowledge that I have it in my hand will have the desired effect." It is a dangerous argument to say that we should pass legislation giving a Minister of the Crown very wide powers with the hope that he may have the sense not to use them very often. Once a Bill has become law it runs away from the Minister's control. He used the same moderate arguments when he was advocating the Coal Mines Act. Look how it has run away from him, and the effect that it is now having! Once a Bill is through Parliament it is difficult to keep a check upon it, and therefore we ought not to be too much impressed by his argument that the powers he is taking may be used only very sparingly.
The President of the Board of Trade has a dual personality. Not very long ago he was standing at that Box uttering such phrases as "cut-throat competition, "and" recalcitrant minorities" and "the chaotic scramble for markets resulting from uncontrolled selling." I wonder how he can reconcile the speeches he made during the passage of the Coal Bill, which created the biggest monopoly ever known in this country, with the Measure which he is advocating to-day. He is not the only Minister with this dual personality. The present Lord Privy Seal, when Under-Secretary of State for Scotland, spoke on the Marketing Bill, and said: "We must have the power to deal with recalcitrant minorities." What were those recalcitrant minorities doing? They were selling too cheaply. The London Milk Combine has been referred to to-night. In an earlier Debate I heard the Lord Privy Seal complaining of the breakdown of the milk pool in the West of Scotland. That was a pool for the selling of milk, and it covered a wide area round about Glasgow. It broke down because there was a "recalcitrant minority," consisting largely of a big co-operative society, who sold milk too cheaply. I can picture a scene in some prison cell in the future with one prisoner meeting another and asking: "What are you in for?" He will be told, "I am a member of the London Milk Combine, put in here for selling milk a penny a gallon too dear," and the other prisoner will reply, "I was one of the recalcitrant minority in the case of the Scottish Milk pool, and I have been put in here for selling milk too cheaply." How the right hon. Gentleman will reconcile those two conflicting ideas I cannot imagine. He will find it very difficult to explain it to the country.
In outlining the attitude of the Liberal party towards the Bill the right hon. Member for Darwen (Sir H. Samuel) gave it what I regarded as a very qualified blessing. The faces of right hon. and hon. Gentlemen opposite while he was speaking showed their doubts as to whether this would not be another case of the Trade Disputes Bill—death by a thousand cuts. When that Bill was taken upstairs the first cut proved fatal, and it may be that this Bill, if it obtains a Second Reading and goes upstairs, will be treated in the same way and amended in a drastic manner. We on this side have made our position perfectly clear. We are opposing the Bill. Hon. Members who suggest that we take up the attitude of doing nothing at all show that they have not read our Amendment. We are prepared to consider sympathetically any proposals put forward by the Government if they make out a case for investigation, but we are not prepared to give support to a Bill which only increases the powers of the bureaucracy and will help neither traders nor consumers. It is only one more fragment of the bundle of inconsistencies which the Socialist party call their legislative programme. The party who succeed them in office will have a Herculean task in clearing up the chaos they have made, but the House can at any rate make that task easier by refusing to give this Bill a Second Reading.
Let me begin by relieving the anxieties of the hon. and gallant Member for Midlothian (Major Colville) as to the fate of this Bill as far as it rests in the hands of the Liberal party. We are committed to the principle of this Bill. As my right hon. Friend the Member for Darwen (Sir H. Samuel) pointed out, the underlying idea to which this Bill gives form and purpose is to be found in the reports of the Liberal Industrial Inquiry. My right hon. Friend referred to a resolution in support of this principle which was passed by the National Liberal Federation. As I had the privilege of moving that resolu- tion, it will not be expected that I should enhearten what are apparently the hopes of my hon. and gallant Friend the Member for Midlothian as to what the prospects of the Bill may be. Criticism of the Bill is based largely on entirely false premises. The justification for it does not rest so much upon what it does or does not contain as upon its being an attempt to relieve what is a very genuine apprehension in the public mind. It is not a question of whether that apprehension is justified or not. The apprehension is there, and it is part of the business of Parliament and the Government to relieve any apprehension which is widely felt by the public. The hon. Member for Lancaster (Mr. Ramsbotham), in the interesting speech which he made earlier in the evening, made a complaint against the Government that it should have produced more evidence in regard to profiteering before introducing this Bill. Profiteering or no profiteering, it is not the justification or lack of justification of this Bill. The main object of this Measure is to find out what are the facts.
The hon. Member for Lincoln (Mr. R. A. Taylor) read an extract from the report of the Coal Commission, and anyone who has read that report will agree that by far the least satisfactory part of an extraordinarily interesting and valuable report is the part which deals with the distribution of coal. The Commission time after time expressed the difficulty which they had in explaining the discrepancy between the price of coal at the pit and the price on the coal barrow. It was part of the business of the Commission to obtain precise information as to what explains the wide spread between the price at the pithead and on the coal barrow, but they failed to account for this grave discrepancy which is now causing so much of what is little short of social unrest in the public mind. You cannot expect men and women living on a mere margin of subsistence to look quietly on when they have glaringly brought to their notice the great discrepancies between the wholesale price and the retail price of products. The object of this Measure is to find out whether in fact there is profiteering. It is to ascertain that information that this Bill has been framed, and it provides for making the necessary inquiries.
I will give an example of the difference of opinion on this subject that exists in the public mind by a reference to two speeches which have been made by hon. Members sitting on the opposite side of this House. The hon. Member for Lich-field (Mr. Lovat-Fraser) made a speech in which he suggested that in certain trades very large profits were being made, and the hon. Member for Lincoln, who followed him, questioned if that was a fact, and, if so, he said that he would like the hon. Member for Lichfield to tell him where the place was so that he might go there. When you find in two speeches on the same Bill two Members of the same party expressing different views arising out of the same set of facts, surely there is some excuse for the confusion which exists in the public mind on the question, and it shows the necessity for the public being informed as to what are the true facts of the case. It is useless for the hon. Member for Lancaster to quote cases of tradesmen earning between £300 and £400 a year. That may be true, and no one would complain that it was excessive. But the public would like to know what relations exist between butcher A in a certain street and butcher B and C in the same street. Are they all under the same general organisation? Are they independent concerns or are they part of the same concern? Does £300 or £400 a year represent the real profit, or is the real profit dealt with by Lord Vestey's Trust far away in the distance? These are points upon which the public mind would like to be informed.
When we find such a discrepancy between wholesale and retails prices, and when we hear so much talk about reducing wages, and whether the cost-of-living figures are made out at the right level or not, it seems to me impossible to deny to the general public the opportunity of acquiring the information which will put them in possession of the whole facts of the case and make their knowledge effective. I was not entranced by the argument used by the hon. and gallant Member for Midlothian and Peebles with regard to the difficulty of fixing prices and the effect of fixing prices. As a matter of fact, prices are being fixed every day now in the case of multitudes of commodities, and the Government would be in no more difficult position than the combines and distributors who fix prices to-day.
As regards a decision being taken capriciously by the President of the Board of Trade, hon. Members should bear in mind the time it takes to put the machinery of this Bill into effect. First, there, is to be a report from the Council and a recommendation from the Council to the Board of Trade. Then the Board of Trade has to bring the opinion of the Council to the notice of those concerned in order to give them an opportunity of complying with the recommendations of the Council. After that, before an Order can be made, the proposed Order has to be published in the "London Gazette" and ultimately Parliament has to approve of the Order. We must remember that the traders of this country have brought propaganda to a fine art, and their preliminary propaganda against this Bill generally has been very thoroughly organised. What do hon. Members think that propaganda would develop into if an important trade, affecting great interests, was being dealt with by the Council? The fact of the matter is that the inquiry by the Consumers Council and the Order proposed by the President of the Board of Trade would inform public opinion, and it is public opinion which will prevail in the end.
There are one or two provisions in the Bill to which I invite the attention of the President of the Board of Trade. I must confess that I agree in some measure with hon. Gentlemen above the Gangway that the right hon. Gentlemen seem to be a little confused as to what happens in regard to the Coal Mines Bill. I failed to follow the President of the Board of Trade in his opening speech when he referred to the question of coal, because I should have thought that the duties with which the National Investigation Committee are now charged in respect of coal, or at all events in many of their aspects, would come within the purview of the Consumers' Council. I mention that in passing, and I should be interested to know what the Parliamentary Secretary has to say about that point if he has an opportunity of replying. There is a more important and difficult matter to which I would ask the attention of the Board of Trade. What is the precise meaning which he attaches to the words:
Then, again, there is the case where, if a man sells below a certain price, he is put on a black list. Is that restriction upon competition? If a restriction and a monopoly exist far back at the producer's end, so that between the traders themselves there is active competition in the obtaining of goods manufactured by the trust or combine, is that restriction on competition as envisaged by the Bill or not? I am not putting these inquiries in a spirit of criticism but of inquiry, for I am not sure that the Bill is drawn sufficiently wide to include all these matters, as I think it should, and I will tell the House why. We have heard a great deal to-day about milk. We all know the milk combine. I will not say it is open to the public gaze, but it is within the public knowledge. We all know, vaguely or more closely, about the meat combine.
I want to take the question of bread, because I very much doubt whether there is anything in the nature of restrictive competition amongst bakers. As far as my knowledge goes there is not, but that is one of the things upon which the Council could enlighten us. In ordinary parlance there is competition between bakers, but you have prices kept up to a certain point by agreement between bakers. Is that a restriction upon competition within the meaning of the Bill or not? There is the further complication of a combine amongst the flour-millers, and yet at the point of manufacture by the baker, you may have no combine at all. I have indicated some of the questions which present themselves to my mind as to the interpretation of these particular words. My object is not to diminish, but to enlarge the definition given by the right hon. Member for Darwen earlier in the afternoon within the degree of what, to the common mind, is restriction upon competition, but not to make the provisions of the price-fixing clauses general. I shall be grateful if an opportunity presents itself this evening to the Parliamentary Secretary to say anything he may think proper on this point.
In the old days I have always understood that one of the first functions of this House was to curb the Executive and to preserve the liberty of the subject. This Bill does exactly the opposite. First of all, it gives power to the President of the Board of Trade in regard to an investigation and the sending down of inspectors to pry into the affairs not only of the large shops but the smaller traders up and down the country, and also of fixing prices and making orders as to prices. It has been said by the hon. and gallant Member for North-East Bethnal Green (Major Nathan) that it was easy enough to fix prices, and that it had been done by the various price-fixing rings. That, of course, is true, but those price-fixing rings are dealing, where they do exist, only with articles which they know all about; here you are going to have a body of five super-men and two super-women to fix a proper price for the large number of articles which this Bill is presumed to cover. Finally, when you get the price fixed, there is a third thing which this Bill does which interferes with the liberty of the subject, and that is to set up prosecutions.
The Bill sets up two new offences. There is the offence under Clause 4 (3) which is made by this House, and to which one objects very little, in regard to disclosing information. There is another criminal offence set up under Clause 5 (4) in the worst possible way. These offences are not set up by this House but by order of the Minister. The Minister appoints officials to prosecute for the offences which he has set up. Indeed, the only thing which this Bill falls short of in that way is that he does not also appoint the tribunal that is to try the people who are said to have committed the offence which he has created. It is obvious how far-reaching are the powers under Clause 5 (4) because it is in very much the same terms as the Licensing Act. It is clear that not only may there be prosecutions which, of course, cannot be proceeded with under these Acts about which the hon. Member for Westhoughton (Mr. Rhys Davies) and the hon. Member for Lincoln (Mr. E. A. Taylor) talked, but, much worse than that, definite prosecutions can be set up by the State of every employé who sells the commodity above the price fixed. How on earth is the wretched shop assistant to know what price has been fixed for these articles by the President of the Board of Trade? Perhaps he sells an article in all innocence but he is absolutely liable under this Clause, as at present drawn, just as though he had sold alcoholic liquor out of hours in a public-house. It comes rather hard on him if he is going to be prosecuted for these offences, which are not statutory offences, but are merely set up by the regulations of the President of the Board of Trade.
Of course it may well be that the man who orders him to sell the article may be prosecuted too. But the man who is probably quite innocent—there is no question here of his having knowingly sold it at a price above a certain figure, if he sells it as it is—will properly be prosecuted under this Measure as it is at present drawn. That seems to me to be the worst possible form of criminal offence to set up. How is it going to be set up? We have, first of all, an investigation committee looking into various prices, but there is nothing in the Bill to say that the President of the Board of Trade has to follow their recommendations. He can make any Order that he likes, and need not follow the recommendations of this Consumers Council in the least. There is nothing in the Bill that makes him follow their recommendations; it gives him powers completely at large to dictate from the Board of Trade the price above which any article may not be sold, without any reference to the Consumers Council, which might just as well be left out of the Bill for all the effect that it has on the powers which the Minister gives himself. That is the way in which he gets these powers.
What justification has been put forward for the giving of these new powers to one of our Departments of State? The only explanation I have heard up to the present is that given by the hon. and gallant Member for North-East Bethnal Green. He said that there is a genuine apprehension in the public mind, and that it does not matter whether that apprehension is justified or not. I have never heard a worse reason than that for creating a new criminal offence. If this House, because of a genuine apprehension in the public mind, is going to create all sorts of interference with individual trading, and to set up these new criminal offences, it seems to me that it is going very far indeed, and is doing a very stupid thing.
The right hon. Gentleman the Member for Darwen (Sir H. Samuel) said that he supported this Bill because it does not mean what it says. That is what his argument came to. How he knew what the Government meant by this Bill, we do not, of course, ask. The right hon. Gentleman said that he supported it because obviously it does not mean what is in it, and is not going to be operated to the extent that it states. That, however, is no good reason for supporting a Bill which is introduced in this form, because, when once a Bill is on the Statute Book, it does not matter what the President of the Board of Trade, or even the right hon. Gentleman the Member for Darwen, said was going to be done; the judges and legal authorities will construe the Act for what it says, and not for what it was thought to be. We have in the Bill those deligthfully vague words: the conditions exist which restrict the free play of competition. As my hon. Friend the Member for Westmorland (Mr. O. Stanley) said, if two shops combine, and reduce the number from, say, seven to six, that will quite clearly be restricting the competition that previously existed. I suppose, indeed, that if some commodity cannot be sold because of this Bill, and if in consequence one or two shops in a town drop out, every other shop in the town will come within these delightfully vague words, although the restriction may well come about through the operation of this Bill itself.
It seems to me that this is a disastrous Bill. The other day I went to try and buy a hammer, which is, I suppose, an article that would be included as one of ordinary use, and would come within the terms of this Bill. After several inquiries in a particular ironmonger's shop, I found that I could buy a foreign-made hammer at 4s. 2d., while I had to pay 5s. 6d. for the English hammer which I eventually bought. Suppose that the Consumers Council were dealing with hammers, and, finding that some hammers could be sold here at 4s. 2d., fixed the price of 4s. 6d. for a hammer. Then not a single British hammer of that quality could find a market in this country, because the price fixed would be below that at which at the present moment you can buy a British hammer. With all the restrictions that we have on our trade here, with all the extra costs due to unemployment insurance, health insurance, complying with the Factory Acts, or whatever it may be, we are now going to empower a council to put limits on prices which will exclude the purchase of goods made here, while doing nothing to prevent foreign goods from coming in.
The right hon. Gentleman the Member for Darwen says that we are the last people to talk about interfering with trade, but I can assure him that we do not intend to interfere with British trade. We intend to interfere with foreign-made goods, and it seems to me that that is a vital distinction. If, on the other hand, the price of a hammer is to be fixed at the price at which a British hammer can be bought, then, as we found during the War, the maximum price tends to become the minimum price. Everyone says: "You can have a hammer at the price which your Consumers Council have fixed," and that is probably the lowest price at which you will get it. The President of the Board of Trade, in introducing this Bill, said that he did not think that the Bill will effectively enable him to control prices; and yet we get these new criminal offences and all this prying into the businesses of large and small shopkeepers when he is bringing in a Bill which he claims will not give him that effective power. I really feel that it is time we tried not to discourage but to encourage those who are carrying on the burden of trade. I have just as much opposition to this Bill as to the one that was introduced last year. The only good thing I can see about it is that this is only Bill 48, whereas the Bill of last year was Bill 177, and I am glad to say it shows a certain slowing down of the legislative efforts of the Government. I have as much objection to it even though it includes those very vague and wide words which were incorporated by the right hon. Gentleman the Member for Darwen and which are so much disapproved, as I understood him, by the hon. Member for North East Bethnal Green. I hope, at any rate, that we shall once again assert our function of preserving the liberty of the subject and try to prevent bureaucratic offices getting hold of Ministers and getting these further great powers into their hands to the great disadvantage of our traders.
The hon. and gallant Gentleman referred to what might happen under the Bill to persons employed in shops. It is my purpose in Committee to try to get them protected against any odium that prosecutions might bring about. There has been legislation in the past few years, in the Weights and Measures Act and the Merchandise Marks Act, which has led to increasing prosecutions of the servants of big combines employed in shops. I am exceedingly anxious that whatever blame there is shall rest on the principals of the firm and not on the managers of the branch shops or the assistants themselves. I hope when we come to Committee, that I shall have the assistance of the Minister in getting that matter put right. I was pleased to hear the Minister say he agreed that, unless we could control the sources of supply, we should not eventually regulate retail prices. Other Members have urged that it is the small trader who is going to be hampered and injured by the Bill. When we speak about free competition in connection with retail distribution, we are barking up the wrong tree. There are too many people employed in the distributive trades, and there are too many shops already for economical distribution. There are something like 1,750,000 people employed, and, when we had the first complete figures under the Unemployment Insurance Act, there were under 1,000,000. That is to say, that since 1922 there has been an increase of over 750,000 people employed in retail and wholesale distribution. The number of insured persons is going up month by month while the number of unemployed continues to increase month by month. You have now nearly 250,000 people in connection with retail distribution unemployed and, as for the number of shops, there is one shop for every 45 of the population. You cannot get economical distribution in those circumstances.
I am not going to complain that something like organisation has been entering into distribution and that you have the growth of big stores and combines, but I hope that we shall eventually secure some form of control to see that the public as a whole are not unduly charged for the articles they purchase, largely because businesses have been inflated by watered capital and by the buying and selling of businesses in the process of reorganisation in the last few years. But every shop that is opened in competition with the next increases the rental value. I know a village in Yorkshire where I should think every multiple firm in the grocery trade has a shop. The village depends on one colliery, working three days a week, and yet these multiple firms are all under one combine and, with every shop that is opened, up goes the rent and the public have to pay accordingly. I can suggest two instances where there might be some inquiry where combines have the control right from the source of production to the retailers shop. The hon. and gallant Gentleman, the Member for North East Bethnal Green (Major Nathan), referred to the Union Cold Storage Company. It controls branches in the Argentine, it runs a fleet of 13 vessels, it controls cold storage in this country and controls something like 3,000 branch shops, and they do not trade under the same name. They trade under all sorts of names and you get shops owned by the same combine opposite one another and next door to one another, doing different classes of trade and selling the same goods at altogether different prices. There is another combination which was recently brought about, the margarine people. Jurgens and the Van den Berg people, who control practically the whole of the output of margarine in Europe have married Lever Brothers, the soap manufacturers, and it is known now as Unilever, Limited. They own fleets of vessels which chase whales in the Arctic Ocean and they control monkey nuts and cocoanuts in the hot climates. I suppose they can say:
I want to deal specially with a particular industry with which I am associated as representative of the port of Grimsby. I notice on this occasion, that while many other industries have been attacked, particularly those dealing with foodstuffs, no mention has been made of the fishing industry on this occasion. I thank the night hon. Gentleman the President of the Board of Trade for keeping away from that subject. On the last occasion he gave one of his concrete examples of gross profiteering on the part of certain people, but eventually he took the advice which I proffered him on that occasion, and took the trouble to read the report of the Food Council which was set up by the last Government. The Food Council had in front of them particulars of all the branches of that industry. None of those branches was at all averse from showing its books of accounts and revealing all the secrets of the trade, and letting it be known exactly what money was made by the various branches of the industry. After a long hearing, the Food Council gave them a clean bill of health, and also a verdict of not guilty of any profiteering. Therefore, when the President of the Board of Trade brought forward an instance of that kind, I felt sure that he had not taken notice of what the Committee had found in their report. I also ventured to call his attention to the report of the Imperial Economic Committee, with Sir Holford Mackinder as chairman, which said—and this may apply to other industries dealing with foodstuffs as well as to the fishing industry:
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My principal object in addressing the House is to inform this House and the public at large that they need not be under any apprehension as regards fish for the Easter trade. There with be no profiteering on this occasion. We have arranged for 68 large vessels to land fish at Grimsby on Wednesday, and I can guarantee to the people of the British Isles that they will be able to get a plentiful and wholesome supply of fish at a very reasonable price if they get it from the right people. I also claim to represent the largest body of retail traders in the country, namely, the great organisation known as the National Chamber of Trade. The right hon. Gentleman the Member for Darwen (Sir H. Samuel) referred to certain propaganda which has been sent to Members of this House, and also to the fact that the retail traders throughout the country generally were apprehensive of this Measure. He was right in that respect, and I want to inform him that apprehension of retail traders as regards the working of the Bill did not merely arise as a result of looking over the Bill. The Bill has been carefully examined for them by expert legal minds, who know exactly how Acts of Parliament are carried out in the Courts of Law. As has already been said, it is not a question of what the President of the Board of Trade intends shall be done, but what exactly the Bill says shall be done. The apprehensions on the part of the retail traders of the country are well founded. I can compliment the right hon. Gentleman the Member for Darwen upon having carefully read the circular issued by that trade organisation, because he gave extracts from the circular which were very much to the point, and a good argument against the Bill.
It is all very well to talk about fixing prices. It sounds very simple, and yet Parliament has failed, and will continue to fail until the crack of doom. Surely Members of this House have a vivid recollection of what happened during the War period of control. Reference has been made to the fact that in 1919 an inquiry was held, and that it was said that certain people in the retail trade had prospered. These were the people who really profited at the time when the Government were controlling things, and were supposed to be keeping prices down. Whenever you get the hand of a Government official dealing with the question of trade and food supplies, or the supply of any commodities, you begin to have, not the trouble of competition, but something which results in bureaucratic control and higher prices to the consumer. I can assure the House that the retail traders of the country are going to fight the Bill outside the House, and that their representatives inside the House are going to fight it if it gets to the Committee. I hope that the Amendment which has been proposed by Members of my own party will be carried to-night, and then we shall hear no more about the Bill, which is worse, if anything, than the one presented to this House on the last occasion.
In comparing the present Bill with the Bill which was brought in last year, I am glad to be able to start with a point of agreement with what the Government have done. They have cut out from last year's Bill the statement about obtaining information. It suggested that the main object of the Bill was to obtain information. The main object of this Bill is to give the Government power to fix prices. That is an entirely new departure, and I think that the Title of the Bill ought clearly to convey not only to the House but to the country as a whole that the Government are trying to get power from the House of Commons to fix prices, a thing which no Government and no autocrat have ever, in the history of this country, succeeded in accomplishing. I think that the Government realise the exceedingly dangerous nature of some of the inquiries which they are setting up. They know that the methods by which they propose to make these inquiries are dangerous, because the council has to make a declaration of secrecy, and the importance which the Government attach to their declaration of secrecy is so grave that if any member of the council gives away information in a way that it should not be done, that member can be sent to two years' imprisonment or be fined £100, or both. [HON. MEMBERS: "Shame!"] Hon. Members opposite say "shame." Now we know where we are. Those hon. Members evidently consider that the Government should use autocratic powers to inquire into the position of a number of industries, and then possibly information may be given to trade rivals.
Men used to be hanged for sheep stealing.
I would remind the Government and hon. Members opposite that the information which will be obtained will have a high commercial value and could no doubt be sold for a good deal of money. That is one of the reasons why these heavy penalties are put on. I hope that if this council ever operates there will be a little more secrecy in regard to the discoveries made by the council than there has been in regard to the Steel Report which has been published recently.
Further words have been added to the Clause to the effect that the power to fix prices will only operate when conditions exist which restrict the free play of competition. The Government will be able, therefore, to restrict the prices obtained by farmers for their produce, because the farming industry has, thanks to the Minister of Agriculture and his Agricultural Marketing Bill, become an industry in which the Government themselves are restricting the free pray of competition. In the case of the coal mines, the President of the Board of Trade has deliberately restricted the free play of competition. The new provision has this curious effect, that no action can be taken by the President of the Board of Trade in cases where extremely high prices exist owing to scarcity. If you get a year of great scarcity of some particular product you may get exceedingly high prices, not due to any restriction but simply to scarcity. Under the Clause which has been put into this new Bill the Government cannot themselves intervene when scarcity, and scarcity only, have produced the high prices. I gather that everybody is agreed that the co-operative societies are going to be all right under the Bill. I think we may take that for granted.
We have learned from the back benches opposite rather more than from the Front Bench which people are going to suffer. The small traders will suffer. In case of a restriction in a particular area, it is obvious that arrangements will have to be applied to the whole of that area, and the small trader will be particularly hit. This is evident in the case of the penalty. The fact that a fine of £5 is to be imposed for the first offence, compared with £100 for breaking the secrecy declaration, will favour the large concerns, because small people will be hit by a fine of £5 whereas that amount is not much to a great combine. Moreover, these small people may be punished for breach of an Order of which the House of Commons may disapprove at the earliest possible moment. Orders can be issued by the President of the Board of Trade and become law, but they have to be laid on the Table of the House and the House may cancel the Order. None the less, it will have been effective for the period while it has been in force. Therefore people can be punished for breaking a regulation in regard to which the House of Commons may express its full and immediate disapproval as soon as it has the opportunity.
With regard to the question of inquiry, of course we are in favour of inquiry, but if there are facts which the Government do not know surely the better plan would be to make an inquiry, get the facts and then decide whether or not it is the right thing to endeavour to fix prices. Price fixing should not be gone into without proper preliminary inquiry. In regard to the question of cost, we are told that the amount will be about £20,000. That is very much under the amount which I think it will cost. The President of the Board of Trade has lately brought in a Coal Mines Act to deal with one trade in this country, and as an example of the kind of things that would happen if Socialism were introduced a gentleman has been selected at a salary of £7,000 a year in order to keep prices of coal up at the pithead. If we pay £7,000 a year for a gentleman to keep prices up at the pithead, what shall we pay to the man who keeps the price of coal down. That would be equally valuable. If we are to deal with the various trades that are indicated in this Bill and there are to be any more gentlemen getting £7,000 a year, the £20,000 will not go far. Hon. Members opposite talk a good deal about small traders making profits. They talk as if profit was an evil thing, and yet they would like to set up a system of Socialism under which a very limited number of people would draw exceedingly large salaries.
We gather from this Bill that nationalisation is not in sight. If the Government thought that they were going to win the General Election and were going to introduce nationalisation, this Bill would not be necessary. If the small traders are to be abolished and the State is to take over everything, there is no need to put the small shopkeeper in prison or to fine him £5, because the whole business of the State will be managed by the officials. Therefore, I gather that the provisions of the nationalisation scheme come under the 25 years' plan. Meanwhile, they have a five years' plan, which is to remain in office. When I understand that the Government are endeavouring to remain in office for five years, I should like to congratulate them on the very able assistance which they will get from the right hon. Member for Darwen (Sir H. Samuel). It is very interesting to hear someone, from the Liberal benches giving a lecture to the House of Commons on the evils of log rolling. We can be sure of this, that when the right hon. Gentleman makes a speech pointing out what faults there are in a Bill, he will be sure to say that he is going to vote for it. I could almost have hoped that he would have devoted his speech to praising the Bill and have finished by saying that he intended to vote against it. That would have been much more satisfactory from our point of view.
There are one or two points that have arisen in the Debate to which I should like to call attention. The hon. Member for Lichfield (Mr. Lovat-Fraser) does not take the view of the President of the Board of Trade that one or two standard things like milk will be dealt with. He wishes to see price fixing applied to Christmas turkeys, tooth powder and clothes. That seems to enlarge the scope of the inquiry and the possibilities of punishment. Two hon. Members opposite spoke of the need for protecting the employés in shops from being intimidated by those who employ them. I did not hear any objection from them to intimidation when we were discussing the Trade Disputes Bill. The hon. Member for Bethnal Green North East (Major Nathan) said that we must pass the Bill because of the public anxiety and that justification did not matter. The idea that we are to fix prices by a Bill, under which about four different kinds of offences can be committed with imprisonment up to two years, because there is public anxiety and that justification does not matter is an entirely new foundation for legislation by this House.
The main issue we have to decide is the question of fixing prices. This inquiry is only to lead up to the fixing of prices, and on that question I respectfully ask the House to reject the Bill. The fixing of prices has been tried over and over again. The Government, apparently, are anxious to have inquiries in order that they may become wiser, but what is the good of inquiry if they do not inquire into what has happened over and over again when prices have been fixed. I have traced it back as far as A.D. 301, and there are even earlier cases than that, but if hon. Members object to the experience of long ago why do they not study what happened during the War? Hon. Members opposite say that there was all sorts of profiteering during the War, but that was a time when the Government was controlling prices. [An HON. MEMBER: "A Tory Government."] It was a Coalition Government of which members of the Labour party were members. Hon. Members opposite do not seem to remember even as far back as the War. The fixing of prices has always failed in the past. We had an experience of it during the War, and I suggest that it would be worth the while of the Government, before embarking on this new legislation, to look at what was said by Sir William Beveridge, who has had an enormous experience of this subject and who I believe is a Free Trader. He said that: lar industry in this House. If it is coal they must try to keep the price up in order to get better conditions and wages for the people employed in the industry.
The Government's programme in the case of agriculture was that agriculture must be made to pay, and by the method which the President of the Board of Trade is going to adopt one of the first things he would have done in 1929, if he had had the power in this Bill would have been to say that the price of milk must come down by one penny per quart retail in August, which would mean 4d. per gallon to the farmer, at a time when he is very anxious to have a little money in hand in order to pay his workmen before he is able to sell his corn. It is ridiculous to suggest that a body like the United Dairies Company would have had 4d. per gallon taken off the price and not pass on the reduction to the farmer. Therefore, if the President of the Board of Trade had had the power given by this Bill he would have given a lower price to farmers for milk and, presumably, that would have had a bad effect on the wages and conditions of agricultural labourers.
It is very good of the right hon. and gallant Gentleman to give way. There is only one point, and that is that it was the unanimous recommendation of the Food Council appointed by the right hon. Gentleman's Government.
That may be so. My point is that if the right hon. Gentleman had had the power he would have compelled a lowering of the price of milk by that amount, and the farmers would have lost 4d. a gallon on their milk at a time when they could ill afford it. If keeping up the price of coal means better conditions for the miners, how can lowering the price of agricultural produce mean anything but worse conditions for the agricultural labourers? With regard to the fixing of prices, it is obvious that if prices are fixed too high harm is done to the consumer, and if they are fixed too low there is a risk of creating a shortage of supplies by discouraging production. It is, of course, possible that the Government may fix exactly the right price for some commodity. But how long will that price be the right price? We can see from the newspapers that the prices of some commodities vary from day to day. Are the prices to be fixed under the Bill with complete disregard of the fluctuations that now occur? There are commodities which vary in price according to the season. Are we to have a series of different prices on different days or in different weeks? I do not think it is possible for the Government to deal with so complicated a thing as the produce of food and clothing. The extent to which the President of the Board of Trade will operate is, on his own admission, equal in amount to £2,000,000,000 a year. That is all to be done for £20,000. It is obviously impossible.
There are other considerations which I must mention. There is the present position of the country and there is the state of business in this House. We are going very shortly to have introduced a Budget which will obviously involve a great deal of work for this House, and rightly so. We ought to get on with the things that matter most. The President of the Board of Trade is responsible for the trade of the country at a time when there is an enormous amount of unemployment. I suggest that the right hon. Gentleman's time would be better devoted to trying to improve the trade of the country than to interfering with small traders. We want to encourage production and to get a little more work done in the country. I also suggest that the right hon. Gentleman would be well advised to clear up the mess that he has made with the coal trade before he embarks on the work of creating confusion in another industry. Therefore I ask the House to reject the Bill. The Bill involves a large number of new offences. It means the fixing of prices, which has never yet been successful; and, above all, it does not even pretend to do anything to remedy unemployment. It is quite wrong that the House should be devoting its energy to so many measures which have no relation whatever to what really matters in the country. One would have thought that a Labour Government might have taken some interest in the case of those who are out of work. Instead of that, we have Measures of all kinds, a Franchise Bill and other Bills. It would be better for the House to reject this Bill and to devote its attention to more urgent matters relating to the problem of unemployment.
In replying on the points raised during this Debate, I do not think that one can complain of the way in which the Debate has been conducted. I propose to confine my observations, first, to a reply to those questions which have been asked on certain parts of the Bill, and secondly to a reply to what may be termed criticisms directed against the underlying principle of the Bill. The right hon. Gentleman the Member for Darwen (Sir H. Samuel) commented on the alteration made in limiting the operation of the Bill, in regard to prices, to those industries or commodities in which there was not free competition, and also asked that some similar alteration might be made in Clause 2 of the Bill in regard to the commodities or industries which might be the subject of investigation. I thought that the right hon. Gentleman answered his own point later on, when he referred to the task in which his own party had engaged of a close investigation of industrial conditions which ultimately led to the publication of one of those documents which have emanated from his party. He said that one of the difficulties which they experienced was that of making a definition which would meet the case, because on the one hand such a definition might be too wide, or on the other hand, it might be too narrow, and it was difficult to determine, for instance, in this case, what a monopoly was in order that such investigations might take place. I think that is the real answer to his point in regard to the present Bill, and it also covers the point raised by the hon. Member for Holland-with-Boston (Mr. Blindell) in regard to monopolies.
There can be little or no objection to an investigation into the facts appertaining to any one commodity, and surely, if the public are to be protected from anything which may be considered an abuse, there ought at least to be the opportunity of as wide an investigation as possible, while at the same time provision is made that, as far as prices are concerned, that part of the Measure is only to operate where the free play of competition is not in existence. The distinction between the two points is that the second one only arises after there has been a very close investigation, with the result that we are better able to lay down whether the com- modity does or does not come within that definition. But in making the inquiry in the beginning it is not always so easy to have that point clearly in mind. The hon. Member for Westhoughton (Mr. Rhys Davies), the hon. Member for South Hammersmith (Mr. Chater), and the hon. Member for Lincoln (Mr. R. A. Taylor) raised the point as to how far any worker, who is called upon to give evidence in connection with these inquiries, will be protected from victimisation. I am advised that that point is covered by the application of the provisions of the Witnesses (Public Inquiries) Protection Act, 1892. It certainly is the desire and intention of the Government that adequate protection should be given to anyone called upon to give evidence in connection with these inquiries, and if the Act which I have mentioned does not fully meet the case, we shall be willing to consider any suggestion which may be made in Committee to make the position of the workmen more secure in that respect.
The hon. and gallant Member for North-East Bethnal Green (Major Nathan) also raised a point as to what might be within the ambit of the Bill. He spoke of certain commodities which might be termed proprietary articles, in the sale of which conditions were laid down that the sale of one commodity to the retailer could only take place if the retailer agreed to take another commodity also to sell in his shop. All that I can say in that respect is that that comes under the particular category of proprietary articles that is being inquired into at present and which possibly will have to be dealt with later on. I do not think it is a point which will come within the scope of the present Bill, except in so far as conditions of sale would attach under which abnormal profits would be made by the price that the retailer would be compelled to charge for the article. That is a case that would certainly come under the Bill, because if the proprietary articles were under very limited conditions of sale, obviously they would be outside the free play of competition, and therefore would be within the scope of the Bill.
I would like to deal with some of the points that have been raised by the Opposition in support of the Amendment which they have placed on the Paper. The right hon. Gentleman who moved the Amendment referred to the Bill as a traders' persecution Bill. That comes rather strangely from a leader of a party that was responsible for the setting up of the Royal Commission on Food Prices and a leader of a party which established the present Food Council, the very Council that has taken steps to deal with this question at least in some way with a desire to be effective. It is strange to speak so of a Bill which follows on the same lines, apart from the one point of price-fixing, and the persecution, to judge from the speeches which have been delivered, lies in the inquiries that would have to be made rather than in that part of the Bill which deals with the fixing of prices.
He also referred to it as a dear food Bill. That is rather a strange observation, seeing that the only case that has come up in which anything in the nature of price-fixing was attempted was an endeavour by my right hon. Friend in 1929, when he sought, on the unanimous recommendation of the Food Council which the right hon. Gentleman the leader of the Opposition appointed, to prevent a big combine in London from charging 7d. per quart for milk and tried to have the price fixed at 6d. It is rather strange, if a Bill would give effect to a principle of that description, that it should carry with it the title of a dear food Bill. He also stated that these questions should be put to the country. Fortunately or unfortunately, these questions have been put to the country. The right hon. Gentleman the leader of the Opposition in 1924 had a reference in his election manifesto to this very question, in which he promised to deal with this problem of profiteering should opportunity present itself. He had already, in January of that year, stated in the King's Speech that preparations would be made for measures for the ascertaining of costs and profits in connection with the distribution of milk.
Evidently, this is a question to which he attached the very greatest importance, because addressing what I believe was a very successful demonstration at Welbeck Abbey on the 1st June, 1925, he felt that that was an occasion on which this subject should have some reference, and he said:
The hon. Gentleman has several times challenged me. I stated specifically that I stand by all the pledges that were given by my right hon. Friend when he was Prime Minister, but the charge that I made against this Bill was with regard to the fantastic power to fix prices.
I quite appreciate the position of the right hon. Gentleman. I was only distinguishing between the back and the Front benches opposite. I can only express the hope that this is not the beginning of another revolt. It would be lamentable indeed, just as unity had been re-established, and peace had been made with the great Press lords, if a back bench revolt should take place by a repudiation of the Front Bench in regard to their pledges. I will carry this point somewhat further. Other references have been made to it, and I shall have to ask a question of the right hon. Gentleman the Member for Bewdley (Mr. S. Baldwin) in regard to them, in order that the House may clearly understand what is meant and intended by this statement, because, after all, if, as the right hon. Gentleman the Member for Hendon (Sir P. Cunliffe-Lister) said, this question should be put to the country, the country would have a right to know what is meant by statements that are made about it. In the Debate on the Address in the House on the 2nd February, 1926, the right hon. Gentleman, who was then Prime Minister, said: I would like to take the opportunity of paying a tribute to the Food Council for the excellent work that they have done. They are a body of men and women who are very busy in other spheres of life, and they give up their time to the service of the community to carry out these investigations and to bring forth very valuable information. They have stated through their chairman that it is useless their carrying on under present conditions, for it is only wasting their time and public money. Therefore, the time has arrived when the right hon. Gentleman ought to be giving effect to that statement, because the position he foreshadowed has been reached. The right hon. Member for Bewdley was addressing another great demonstration at Welbeck Abbey—evidently a favourite place with him—in May, 1928, some three years after the establishment of the Food Council. He stated there: the facts before them, that certain commodities are being sold to the public at a price which is not warranted, that there is what is understood to be profiteering. The right hon. Member for Bewdley has promised to safeguard the interests of consumers. How can he carry out that claim after investigation has shown that certain firms are charging too much for their commodities, unless the Food Council have other powers beside the powers of compulsory investigation?
That position is not unknown. It has been reached under the present powers in the case of milk, already referred to in the Debate to-day. There was no doubt about the facts. They were ascertained as clearly and unmistakeably under the voluntary powers as they could have been under compulsory powers, but what happened? The Food Council said to the firms concerned: "We have investigated these matters, and on the facts before us we unanimously declare that the price you are charging or propose to charge is too high, and for another month, at least, the price of milk to consumers in London ought to be a 1d. per quart less." In that case, the retailers said: "We shall do just as we please." That was also their answer in regard to bread. I say to right hon. Gentlemen opposite: "If you are consistent and mean what you say when you propose to safeguard the interests of the consumers, and save them from the encroachments of amalgamations and monopolies, there is no other way to do it except the one which is proposed in this Bill, and that is to have a compulsory investigation with an opportunity of ultimately limiting the price that can be charged if the facts justify it." That seems to be the issue which the House ought to face.
This question of prices is not a new subject in the House of Commons. It goes back to 1919 when the Profiteering Acts were placed on the Statute Book, and when an attempt was made to protect the consuming public who were being exploited. From that time up to the present moment this kind of thing has gone on, and the House has now reached a stage when it must say, and say clearly, whether the question of commodity prices is no concern of this House and that traders may charge whatever they choose for the commodities they dispose of, or whether the House must protect the consumer and make that protection adequate. That is the issue before the House to-night. Frankly I do not think any party will agree that the question of retail prices is no concern of this House, or that we are prepared to leave business people to do just as they wish in this respect. It has been stated that under the present system the free play of competition has passed away, and that we have lost control of the trade in many commodities in this country. When that stage has been reached, then it may be necessary, in the interest of the public as a whole, that there should be some means of protecting it against the over-reaching conduct of people who seek to use this power for their own advantage, and make as much profit as possible for the shareholders whom they represent. The Conservative party promised the electors that they would establish a Royal Commission on Food Prices and establish a Food Council, and they told the country generally that, if wider powers were needed, they would give them to the Council. I claim that we ought to have powers of compulsory investigation, and I would remind hon. Members that the leader of the party opposite has pledged himself to safeguard consumers against combines and monopolies.
The issue is a simple one, and we cannot leave this question of control of prices in such a position that the House has no authority over these people. The House is bound by the pledges of its members to do something to protect the general interest of the consumer. Therefore, the question becomes one as to whether there is any other way than that proposed in the Bill to effect the objects we have in mind. We should be quite willing to adopt any other method that might be effective. We are not bound to this particular way or method to achieve the purpose if some other method could be found, but we do not see how it is possible to protect the consuming public unless some authority is set up and, side by side with that, after an inquiry has been held, some power to fix prices. The right hon. Gentleman opposite seemed very much disturbed that any body or authority should exist for the purpose of fixing prices. One might almost have assumed that such a thing was unknown, and that it would be an alarming thing to start to fix prices just now. He knows very well that prices are fixed to-day. [HON. MEMBERS: "No!"] Yes, the retail prices of proprietary articles are almost without exception fixed by those who manufacture them.
The hon. Member for North East Bethnal Green said that if the retailers wished to deal with the owners of proprietary articles, they were tied down to a selling price. We have had quotations this evening of the profits made in a chemical product, namely, aspirin, for which the fixed price is such as to bring to the retailer a profit of 102 per cent., while in regard to another commodity, Palmolive soap, the profit which the retailer is bound to realise by the prices fixed by the producer is said to be no less than 64 per cent. The right hon. Gentleman does not mind that kind of price-fixing, and, if one can judge the policy of his party correctly, he would even go further and put on tariffs in order that price-fixing might become even more extensive than it is at present. The difference between right hon. Gentlemen opposite and ourselves, is that we object to a system of price-fixing which is carried on in the interests of those who produce and sell the articles, as against the interests of the consuming public. We would rather favour a system of price-fixing, not by any indiscriminate method and merely to suit the interest of any one section of industry, but a system put in force after the very closest investigation and inquiries have been carried out by competent people with trained minds and ability to do that work in an effective fashion. I suggest that there is very little option left to hon. Members as far as this Bill is concerned. They are pledged to it through their respective leaders, and it is useless to suggest that by giving the Food Council merely compulsory powers of investigation they are going to get out of the difficulties in which they found themselves during the later years of their existence. It is true that they were able to get information, but it is also true that in regard to at least four very important commodities of food, namely, tea, meat, milk and bread, they found it impossible to get their recommendations accepted and carried out by the interests concerned.
What about tea?
I am glad that my hon. Friend is interested in tea. The reference of that commodity to the Food Council in 1926, after what seemed to the public a most abnormal rise, resulted in the council, after investigation, making certain recommendations to the people who were involved in the handling and sale of it, not one of which has been carried out to this day. The same thing applies to meat, to milk, and also to bread. [ Interruption. ]
What about cocoa? [ Interruption. ]
I must ask hon. Members not to continue to interrupt.
I only want to detain the House for one minute—[ Interruption. ]
rose —
Order!
Hon. Members must not remain standing when I am on my feet.
I should be only too pleased to give the hon. Member for East Willesden (Mr. D. G. Somerville) the information for which he asks, but I do not think that that is a subject which is to be investigated yet by the Food Council; probably it may be undertaken later on. I have pointed to at least four commodities in order to show the House that what the party opposite are asking in their Amendment—for which, if I may say so, they do not show much enthusiasm—has been effected under powers that exist at the present time, and I would repeat that, if this House feels that
the time has arrived when the public ought to have some measure of protection from what may be termed abuses in regard to the prices that are fixed for certain commodities, and especially food commodities, the House can have no alternative but to give a Second Reading to this Bill.
In my view, people should not be compelled to give information which they do not give voluntarily—[ Interruption. ]
I hope that the hon. Member will be allowed to proceed.
When anyone comes into collision with the law, he has to be warned that any words that he uses may be used for his own conviction, and he has the power to hold his tongue or to volunteer the information, as he pleases. This Bill takes away that right from the British subject. It allows a body of people to place on oath and examine at length a person who is under suspicion, and it compels him to answer—a thing which the Star Chamber and the worst forms of mediaeval court could do, but which, by long practice, has been abandoned in this country. No one has any sympathy with profiteering, but that it should be possible to cross-question a man, to make him bring his books forward, to put him on oath, and then fine him £5 or whatever it may be, and place him under all manner of legal punishments, in consequence of what was extorted under oath from his own mouth, is simply contrary to British legal practice.
Question put, "That the words proposed to be left out stand part of the Question."
The House divided: Ayes, 263; Noes, 220.
Division No. 206.] AYES. [11.0 p.m. Adamson, Rt. Hon. W. (Fife, West) Bennett, Sir E. N. (Cardiff, Central) Cape, Thomas Adamson, W. M. (Staff., Cannock) Bennett, William (Battersea, South) Carter, W. (St. Pancras, S.W.) Addison, Rt. Hon. Dr. Christopher Benson, G. Chater, Daniel Aitchison, Rt. Hon. Craigie M. Bevan, Aneurin (Ebbw Vale) Church, Major A. G. Alexander, Rt. Hon. A. V. (Hillsbro') Bondfield, Rt. Hon. Margaret Cluse, W. S. Alpass, J. H. Bowen, J. W. Clynes, Rt. Hon. John R. Ammon, Charles George Bowerman, Rt. Hon. Charles W. Cocks, Frederick Seymour Angell, Sir Norman Broad, Francis Alfred Compton, Joseph Arnott, John Brockway, A. Fenner Cove, William G. Aske, Sir Robert Bromfield, William Daggar, George Attlee, Clement Richard Bromley, J. Dallas, George Ayles, Walter Brooke, W. Dalton, Hugh Baker, John (Wolverhampton, Bilston) Brothers, M. Davies, D. L. (Pontypridd) Baldwin, Oliver (Dudley) Brown, Rt. Hon. J. (South Ayrshire) Davies, Rhys John (Westhoughton) Barnes, Alfred John Burgess, F. G. Day, Harry Barr, James Burgin, Dr. E. L. Denman, Hon. R. D. Batey, Joseph Buxton, C. R. (Yorks. W. R. Elland) Dudgeon, Major C. R. Beckett, John (Camberwell, Peckham) Caine, Hall, Derwent Dukes, C. Benn, Rt. Hon. Wedgwood Cameron, A. G. Ede, James Chuter Edmunds, J. E. Lee, Frank (Derby, N.E.) Ritson, J. Edwards, E. (Morpeth) Lee, Jennie (Lanark, Northern) Romeril, H. G. Egan, W. H. Lees, J. Rosbotham, D. S. T. Elmley, Viscount Lewis, T. (Southampton) Rowson, Guy Foot, Isaac Lloyd, C. Ellis Salter, Dr. Alfred Freeman, Peter Logan, David Gilbert Samuel, Rt. Hon. Sir H. (Darwen) Gardner, B. W. (West Ham, Upton) Longbottom, A. W. Samuel, H. Walter (Swansea, West) Gardner, J. P. (Hammersmith, N.) Longden, F. Sanders, W. S. George, Rt. Hon. D. Lloyd (Car'vn) Lovat-Fraser, J. A. Sandham, E. George, Major G. Lloyd (Pembroke) Lunn, William Sawyer, G. F. George, Megan Lloyd (Anglesea) Macdonald, Gordon (Ince) Scurr, John Gibbins, Joseph MacDonald, Rt. Hon. J. R. (Seaham) Shakespeare, Geoffrey H. Gibson, H. M. (Lancs, Mossley) MacDonald, Malcolm (Bassetlaw) Shaw, Rt. Hon. Thomas (Preston) Gill, T. H. McElwee, A. Shepherd, Arthur Lewis Gillett, George M. McEntee, V. L. Sherwood, G. H. Glassey, A. E. McGovern, J. (Glasgow, Shettleston) Shield, George William Gossling, A. G. McKinlay, A. Shield, Dr. Drummond Gould, F. MacLaren, Andrew Shillaker, J. F. Graham, Rt. Hon. Wm. (Edin., Cent.) Maclean, Neil (Glasgow, Govan) Shinwell, E. Granville, E. McShane, John James Short, Alfred (Wednesbury) Gray, Milner Malone, C. L'Estrange (N'thampton) Simmons, C. J. Greenwood, Rt. Hon. A. (Colne). Mander, Geoffrey le M. Simon, E. D. (Manch'ter, Withington) Grenfell, D. R. (Glamorgan) Manning, E. L. Sinclair, Sir A. (Caithness) Griffith, F. Kingsley (Middlesbro'W.) Mansfield, W. Smith, Ben (Bermondsey, Rotherhithe) Griffiths, T. (Monmouth, Pontypool) March, S. Smith, Frank (Nuneaton) Groves, Thomas E. Marcus, M. Smith, Lees-, H. B. Grundy, Thomas W. Marley, J. Smith, Rennie (Penistone) Hall, G. H. (Merthyr Tydvil) Marshall, Fred Smith, Tom (Pontefract) Hall, J. H. (Whitechapel) Mathers, George Smith, W. R. (Norwich) Hall, Capt. W. G. (Portsmouth, C.) Matters, L. W. Snowden, Thomas (Accrington) Hamilton, Mary Agnes (Blackburn) Messer, Fred Sorensen, R. Hamilton, Sir R. (Orkney & Zetland) Middleton, G. Stamford, Thomas W. Hardie, George D. Mills, J. E. Stephen, Campbell Hastings, Dr. Somerville Milner, Major J. Strauss, G. R. Haycock, A. W. Montague, Frederick Sullivan, J. Hayday, Arthur Morgan, Dr. H. B. Taylor, R. A. (Lincoln) Hayes, John Henry Morley, Ralph Taylor, W. B. (Norfolk, S.W.) Henderson, Right Hon. A. (Burnley) Morrison, Rt. Hon. H. (Hackney, S.) Thomas, Rt. Hon. J. H. (Derby) Henderson, Arthur, Junr. (Cardiff, S.) Morrison, Robert C. (Tottenham, N.) Thorne, W. (West Ham, Plaistow) Henderson, Thomas (Glasgow) Mort, D. L. Thurtle, Ernest Henderson, W. W. (Middx., Enfield) Muff, G. Tillett, Ben Herriotts, J. Muggeridge, H. T. Toole, Joseph Hirst, G. H. (York W. R. Wentworth) Murnin, Hugh Tout, W. J. Hoffman, P. C. Nathan, Major H. L. Townend, A. E. Hollins, A. Naylor, T. E. Vaughan, David Hopkin, Daniel Newman, Sir R. H. S. D. L. (Exeter) Viant, S. P. Horrabin, J. F. Noel Baker, P. J. Walkden, A. G. Hudson, James H. (Huddersfield) Noel-Buxton, Baroness (Norfolk, N.) Walker, J. Isaacs, George Oldfield, J. R. Wallace, H. W. Jenkins, Sir William Oliver, George Harold (Ilkeston) Watkins, F. C. John, William (Rhondda, West) Owen, Major G. (Carnarvon) Watson, W. M. (Dunfermline) Johnston, Thomas Owen, H. F. (Hereford) Wellock, Wilfred Jones, J. J. (West Ham, Silvertown) Palin, John Henry Welsh, James (Paisley) Jones, Rt. Hon. Leif (Camborne) Paling, Wilfrid West, F. R. Jones, Morgan (Caerphilly) Palmer, E. T. Westwood, Joseph Jowitt, Sir W. A. (Preston) Parkinson, John Allen (Wigan) White, H. G. Kelly, W. T. Perry, S. F. Whiteley, Wilfrid (Birm., Ladywood) Kennedy, Rt. Hon. Thomas Pethick-Lawrence, F. W. Wilkinson, Ellen C. Kenworthy, Lt.-Com. Hon. Joseph M. Phillips, Dr. Marion Williams, David (Swansea, East) Kinley, J. Plcton-Turbervill, Edith Williams, Dr. J. H. (Llanelly) Knight, Holford Pole, Major D. G. Williams, T. (York, Don Valley) Lang, Gordon Potts, John S. Wilson C. H. (Sheffield, Attercliffe) Lansbury, Rt. Hon. George Price, M. P. Wilson, R. J. (Jarrow) Lathan, G. Quibell, D. J. K. Winterton, G. E. (Leicester, Loughb'gh) Law, Albert (Bolton) Ramsay, T. B. Wilson Wise, E. F. Law, A. (Rossendale) Rathbone, Eleanor Young, R. S. (Islington, North) Lawrence, Susan Raynes, W. R. Lawson, John James Richards, R. TELLERS FOR THE AYES.— Lawther, W. (Barnard Castle) Richardson, R. (Houghton-le-Spring) Mr. Charles Edwards and Mr. Leach, W. Riley, Ben (Dewsbury) Charleton.
NOES. Acland-Troyte, Lieut.-Colonel Balniel, Lord Bracken, B. Albery, Irving James Beamish, Rear-Admiral T. P. H. Brass, Captain Sir William Allen, Sir J. Sandeman (Liverp'l., W.) Bellairs, Commander Carlyon Briscoe, Richard George Amery, Rt. Hon. Leopold C. M. S. Berry, Sir George Brown, Col. D. C. (N'th'l d'., Hexham) Ashley, Lt.-Col. Rt. Hon. Wilfrid W. Betterton, Sir Henry B. Brown, Brig.-Gen. H.C. (Berks, Newb'y) Astor, Maj. Hon. John J. (Kent, Dover) Birchall, Major Sir John Dearman Buchan, John Atholl, Duchess of Bird, Ernest Roy Buchan-Hepburn, P. G. T. Atkinson, C. Bourne, Captain Robert Croft Buckingham, Sir H. Baillie-Hamilton, Hon. Charles W. Bowater, Col. Sir T. Vansittart Burton, Colonel H. W. Baldwin, Rt. Hon. Stanley (Bewdley) Bowyer, Captain Sir George E. W. Butler, R. A. Balfour, George (Hampstead) Boyce, Leslie Butt, Sir Alfred Cadogan, Major Hon. Edward Guinness, Rt. Hon. Walter E. Peto, Sir Basil E. (Devon, Barnstaple) Campbell, E. T. Gunston, Captain D. W. Pownall, Sir Assheton Carver, Major W. H. Hacking, Rt. Hon. Douglas H. Ramsbotham, H. Castle Stewart, Earl of Hall, Lieut.-Col. Sir F. (Dulwich) Rawson, Sir Cooper Cautley, Sir Henry S. Hamilton, Sir George (Ilford) Reid, David D. (County Down) Cayzer, Sir C. (Chester, City) Hannon, Patrick Joseph Henry Remer, John R. Cayzer, Maj. Sir Herbt. R. (Prtsmth, S.) Hartington, Marquess of Reynolds, Col. Sir James Cazalet, Captain Victor A. Harvey, Major S. E. (Devon, Totnes) Roberts, Sir Samuel (Ecclesall) Chamberlain, Rt. Hn. Sir J. A. (Birm., W.) Henderson, Capt. R. R. (Oxf'd, Henley) Rodd, Rt. Hon. Sir James Rennell Chamberlain, Rt. Hon. N. (Edgbaston) Heneage, Lieut.-Colonel Arthur P. Ruggles-Brise, Colonel E. Chapman, Sir S. Herbert, Sir Dennis (Hertford) Russell, Alexander West (Tynemouth) Christie, J. A. Hills, Major Rt. Hon. John Waller Salmon, Major I. Churchill, Rt. Hon. Winston Spencer Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Samuel, A. M. (Surrey, Farnham) Clydesdale, Marquess of Hope, Sir Harry (Forfar) Samuel, Samuel (W'dsworth, Putney) Cobb, Sir Cyril Horne, Rt. Hon. Sir Robert S. Sandeman, Sir N. Stewart Cockerill, Brig.-General Sir George Hudson, Capt. A. U. M. (Hackney, N.) Sassoon, Rt. Hon. Sir Philip A. G. D. Cohen, Major J. Brunel Hunter-Weston, Lt.-Gen. Sir Aylmer Savery, S. S. Colfox, Major William Philip Hurst, Sir Gerald B. Shepperson, Sir Ernest Whittome Colman, N. C. D. Hutchison, Maj.-Gen. Sir R. Simms, Major-General J. Colville, Major D. J. Inskip, Sir Thomas Sinclair, Col. T. (Queen's U., Belfast) Cooper, A. Duff Iveagh, Countess of Skelton, A. N. Courtauld, Major J. S. Jones, Sir G. W. H. (Stoke New'gton) Smith, Louis W. (Sheffield, Hallam) Courthope, Colonel Sir G. L. Kedward, R. M. (Kent, Ashford) Smith, R. W. (Aberd'n & Kinc'dine, C.) Crichton-Stuart, Lord C. Kindersley, Major G. M. Smith-Carington, Neville W. Croft, Brigadier-General Sir H. Knox, Sir Alfred Smithers, Waldron Crookshank, Capt. H. C. Lamb, Sir J. Q. Somerville, A. A. (Windsor) Croom-Johnson, R. P. Lambert, Rt. Hon. George (S. Molton) Somerville, D. G. (Willesden, East) Culverwell, C. T. (Bristol, West) Lane Fox, Col. Rt. Hon. George R. Southby, Commander A. R. J. Cunliffe-Lister, Rt. Hon. Sir Philip Law, Sir Alfred (Derby, High Peak) Spender-Clay, Colonel H. Dalkeith, Earl of Leighton, Major B. E. P. Stanley, Lord (Fylde) Dalrymple-White, Lt.-Col. Sir Godfrey Lewis, Oswald (Colchester) Stanley, Hon. O. (Westmorland) Davidson, Rt. Hon. J. (Hertford) Little, Graham-, Sir Ernest Steel-Maitland, Rt. Hon. Sir Arthur Davies, Dr. Vernon Llewellin, Major J. J. Stewart, W. J. (Belfast, South) Davies, Maj. Geo. F. (Somerset, Yeovil) Locker-Lampson, Rt. Hon. Godfrey Stuart, Hon. J. (Moray and Nairn) Davison, Sir W. H. (Kensington, S.) Locker-Lampson, Com. O. (Handsw'th) Taylor, Vice-Admiral E. A. Dawson, Sir Philip Lockwood, Captain J. H. Thomas, Major L. B. (King's Norton) Despencer-Robertson, Major J. A. F. Long, Major Hon. Eric Thomson, Sir F. Dixey, A. C. Macdonald, Capt. P. D. (I. of W.) Tinne, J. A. Duckworth, G. A. V. Macquisten, F. A. Titchfield, Major the Marquess of Dugdale, Capt. T. L. Maitland, A. (Kent. Faversham) Todd, Capt. A. J. Eden, Captain Anthony Makins, Brigadier-General E. Train, J. Edmondson, Major A. J. Margesson, Captain H. D. Tryon, Rt. Hon. George Clement Elliot, Major Walter E. Marjoribanks, Edward Turton, Robert Hugh Erskine, Lord (Somerset, Weston-s.-M.) Mason, Colonel Glyn K. Vaughan-Morgan, Sir Kenyon Everard, W. Lindsay Meller, R. J. Wallace, Capt. D. E. (Hornsey) Falle, Sir Bertram G. Merrlman, Sir F. Boyd Ward, Lieut.-Col. Sir A. Lambert Ferguson, Sir John Milne, Wardlaw-, J. S. Warrender, Sir Victor Fermoy, Lord Mitchell, Sir W. Lane (Streatham) Waterhouse, Captain Charles Fielden, E. B. Moore, Sir Newton J. (Richmond) Wayland, Sir William A. Fison, F. G. Clavering Moore, Lieut.-Colonel T. C. R. (Ayr) Wells, Sydney R. Ford, Sir P. J. Morris, Rhys Hopkins Williams, Charles (Devon, Torquay) Forestier-Walker, Sir L. Morrison, W. S. (Glos., Cirencester) Windsor-Clive, Lieut.-Colonel George Fremantle, Lieut.-Colonel Francis E. Mulrhead, A. J. Winterton, Rt. Hon. Earl Gaibralth, J. F. W. Nelson, Sir Frank Withers, Sir John James Gault, Lieut.-Col. A. Hamilton Newton, Sir D. G. C. (Cambridge) Wolmer, Rt. Hon. Viscount Glyn, Major R. G. C. Nicholson, O. (Westminster) Womersley, W. J. Gower, Sir Robert Nicholson, Col. Rt. Hn. W. G. (Ptrsf'ld) Wood, Rt. Hon. Sir Kingsley Grace, John Nield, Rt. Hon. Sir Herbert Wright, Brig.-Gen. W. D. (Tavist'k) Graham, Fergus (Cumberland, N.) O'Connor, T. J. Young, Rt. Hon. Sir Hilton Grattan-Doyle, Sir N. Oman, Sir Charles William C. Greene, W. P. Crawford O'Neill, Sir H. TELLERS FOR THE NOES.— Grenfell, Edward C. (City of London) Ormsby-Gore, Rt. Hon. William Commander Sir B. Eyres Monsell and Gretton, Colonel Rt. Hon. John Peake, Capt. Osbert Major Sir George Hennessy. Gritten, W. G. Howard Percy, Lord Eustace (Hastings)
Bill read a Second time, and committed to a Standing Committee.
Yarmouth Naval Hospital [Money]
Resolution reported,
"That, for the purposes of any Act of the present Session to provide for the reception and detention of certain persons of unsound mind in the Royal Naval Hospital at Great Yarmouth, and for the treatment therein of certain voluntary patients, to prohibit the taking of legal proceedings in respect of the reception and detention of any person in the said hospital before the commencement of this Act, and for purposes connected with the matters aforesaid, it is expedient to authorise the payment out of moneys provided by Parliament of any expenses incurred by the Admiralty under the said Act in connection with the maintenance of Yarmouth Hospital, and the maintenance and treatment of patients therein, so far as those expenses are not met by deductions from pay or pensions, or by payments made by, or on behalf of, patients."—[ Mr. T. Kennedy. ]
Resolution agreed to.
Improvement of Live Stock (Licensing of Bulls) [Money]
Resolution reported,
"That, for the purposes of any Act of the present Session to provide for the improvement of live stock by regulating the keeping and importation of bulls and for purposes connected with the matters aforesaid, it is expedient to authorise the payment out of moneys provided by Parliament, to such amount as may be approved by the Treasury, of the expenses of the Minister of Agriculture and Fisheries and the Department of Agriculture for Scotland under the said Act."—[ Mr. T. Kennedy. ]
Resolution agreed to.
The remaining Orders were read, and postponed.
Conviction and Sentence, Abbeydore
Motion made, and Question proposed, "That this House do now adjourn."—[ Mr. T. Kennedy. ]
When I raised this question on Wednesday I was not able to pursue it because the House was debating the conditions on the Russian timber camps until half-past eleven. Hon. Members were then so seething with moral indignation against alleged injustices and oppression in Russia that they kept us up until nearly midnight. I want to enlist that same support on behalf of a free citizen of this country who has been the subject of a violation of the elementary principles of justice as flagrant and as scandalous as anything which may have disgraced the Russian revolution. It is the case of feudal domination in an English village, amounting to a gross interference with and subversion of the course of justice. These are the facts, which I have received upon oath, and they have not been controverted in public. On 26th January, this year a lad of 18, Alfred Charles Jones, of Abbeydore, Herefordshire, was charged with poaching under the Act of 1828, the Night Poaching Act, an Act 103 years old. The offence was committed on 10th January. With him was charged George Payne, a married man over 30. During the hearing of the case the owner of the estate, whose gamekeeper was giving evidence, came to the court of justice, and took out the chairman of the court and the case proceeded until the police drew attention to the fact that the chair- man had withdrawn. In evidence, the gamekeeper said this:
She said she was seeing the Home Secretary and placing the true facts before him. On 6th March I received a further letter from the Home Secretary acknowledging another letter from me. On 11th March I received another letter from the Home Secretary acknowledging my letter. That was the third I had received, and the wheels of justice were grinding still on the 11th March.
On the same date I wrote to the owner of the estate asking her to specify the extraordinary documents and detail the three deliberate falsehoods with which she charged me in her letter. I have seen the Home Secretary since, and I wish here to say that he has dealt with me courteously but most unsatisfactorily. The Home Secretary says this:
It is totally out of order to use those terms in this House in regard to a magistrate.
I wish to draw particular attention to the fact that the Chairman was taken out of the Court during the hearing of the case and upon those grounds, I am asking the Home Secretary for the immediate release of this boy, who has already served two months; also that the sentence should be reversed, so that the lad shall not bear the brand of a criminal for the rest of his life, and if possible that the bench should be cleansed of such partisan and prejudiced occupants.
I have told the hon. Member that he is not to speak of magistrates in that manner in this House.
If I have contravened the rules of the House I withdraw. I am merely suggesting that a magistrate who acts in this manner—[HON. MEM- BERS: "Order."] I withdraw the charge if it is against the rules of the House, but I do so under protest.
I make no complaint that my hon. Friend the Member for Hereford (Mr. Owen) exercising his right to bring this case to the notice of the House. Apart from those comments to which you have rightly drawn his attention, he has stated his case with moderation. I think the House will realise that a very heavy responsibility lies upon my right hon. Friend in dealing with cases of this character that come from the courts, and in advising His Majesty as to the exercise of the prerogative of mercy—[HON. MEMBERS: "Justice!"] Mercy in this case. Justice is supposed to be given in the courts. Reference has been made to the chairman of the bench leaving the court, but I understand that the landowner did not adjudicate in this case, nor am I aware that any influence was used in so far as the sentence was concerned. It is true that my right hon. Friend advised the hon. Member on or about 11th March that he did not think that it was consistent with his public duty to intervene, but as a result of further representations—and I can assure the House that in this matter my right hon. Friend is only too anxious to do the right thing consistently with his duty to the public—I have to assure the House that my right hon. Friend is prepared further to consider the case.
I should like to ask the hon. Gentleman whether no representation has been made to the Lord Chancellor about the conduct of the magistrate in this case. I obey your Ruling that nothing is to be said about the evidence, or the verdict, or the sentence, but surely it is within the purview of the Lord Chancellor to deal with a magistrate who leaves the court and goes and confers with a party to the case.
The right hon. Gentleman will recognise that that question was not raised until now—[HON. MEMBERS: "It was!"]—but I will call the attention of my right hon. Friend to it.
It being half-past Eleven of the Clock, Mr. SPEAKER adjourned the House without Question put, pursuant to the Standing Order.